FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA (in thousands, except share data) 2003 2002 2001 2000 1999 =================================================================================================================================== Operations (4) Net Interest Income Fully Taxable Equivalent (FTE) Basis .............. $ 106,899 $ 96,599 $ 66,806 $ 58,619 $ 56,513 Less Tax Equivalent Adjustment ......................... 3,757 3,676 2,445 2,637 2,948 ---------- ---------- ---------- ---------- ---------- Net Interest Income .................................... 103,142 92,923 64,361 55,982 53,565 Provision for Loan Losses .............................. 9,477 7,174 3,576 2,625 2,241 ---------- ---------- ---------- ---------- ---------- Net Interest Income After Provision for Loan Losses ................... 93,665 85,749 60,785 53,357 51,324 Total Other Income ..................................... 35,902 27,077 18,543 16,634 14,573 Total Other Expenses ................................... 91,279 71,009 45,195 40,083 36,710 ---------- ---------- ---------- ---------- ---------- Income Before Income Tax Expense .................. 38,288 41,817 34,133 29,908 29,187 Income Tax Expense ..................................... 10,717 13,981 11,924 9,968 10,099 ---------- ---------- ---------- ---------- ---------- Net Income ............................................. $ 27,571 $ 27,836 $ 22,209 $ 19,940 $ 19,088 ========== ========== ========== ========== ========== Per share data (1)(4) Basic Net Income ....................................... $ 1.51 $ 1.70 $ 1.63 $ 1.51 $ 1.37 Diluted Net Income ..................................... 1.50 1.69 1.61 1.50 1.36 Cash Dividends Paid (2) ................................ .90 .86 .84 .78 .72 December 31 Book Value ................................. 16.42 15.24 12.82 11.61 9.98 December 31 Market Value (Bid Price) ................... 25.51 21.67 21.78 19.54 22.08 Average balances (4) Total Assets ........................................... $2,960,195 $2,406,251 $1,689,694 $1,532,691 $1,397,230 Total Loans (5)......................................... 2,281,614 1,842,429 1,270,555 1,104,013 935,716 Total Deposits ......................................... 2,257,075 1,857,053 1,331,631 1,209,015 1,073,074 Securities Sold Under Repurchase Agreements (long-term portion) ............................... 66,535 44,394 53,309 56,181 Total Federal Home Loan Bank Advances .................. 166,733 155,387 103,941 80,008 57,062 Total Trust Preferred Securities ....................... 56,521 37,379 Total Stockholders' Equity ............................. 293,603 237,575 166,232 141,446 149,727 Year-end balances (4) Total Assets ........................................... $3,076,812 $2,678,687 $1,787,035 $1,621,063 $1,474,048 Total Loans (5)......................................... 2,356,546 2,025,922 1,359,893 1,175,586 998,956 Total Deposits ......................................... 2,362,101 2,036,688 1,421,251 1,288,299 1,147,203 Securities Sold Under Repurchase Agreements (long-term portion) .............................. 23,632 32,500 32,500 35,000 Total Federal Home Loan Bank Advances .................. 212,779 184,677 103,499 93,182 73,514 Total Trust Preferred Securities ....................... 57,188 53,188 Total Stockholders' Equity ............................. 303,965 261,129 179,128 156,063 126,296 Financial ratios (4) Return on Average Assets ............................... .93% 1.16% 1.31% 1.30% 1.37% Return on Average Stockholders' Equity ................. 9.39 11.72 13.36 14.10 12.75 Average Earning Assets to Total Assets ................. 89.99 91.38 93.29 94.85 94.77 Allowance for Loan Losses as % of Total Loans .......... 1.08 1.11 1.11 1.06 1.01 Dividend Payout Ratio .................................. 60.00 50.89 52.17 52.00 52.94 Average Stockholders' Equity to Average Assets ......... 9.92 9.87 9.84 9.23 10.72 Tax Equivalent Yield on Earning Assets (3).............. 5.98 6.83 7.80 8.19 7.81 Cost of Supporting Liabilities ......................... 1.97 2.44 3.56 4.16 3.54 Net Interest Margin on Earning Assets .................. 4.01 4.39 4.24 4.03 4.27 (1) Restated for all stock dividends and stock splits. (2) Dividends per share is for First Merchants Corporation only, not restated for pooling transactions. (3) Average earning assets include the average balance of securities classified as available for sale, computed based on the average of the historical amortized cost balances without the effects of the fair value adjustment. (4) Business combinations that affect the comparability of this information are discussed in Note 2 to the Consolidated Financial Statements. (5) Includes loans held for sale. 2