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Public Finance

Public Finance Group

First Merchants Bank Public Finance understands what’s important in the world of tax-exempt and taxable credit.  We provide our expertise to public sector organizations of all types.  From higher education, to not-for-profits, governments and healthcare organizations.  Also, Public-Private Partnerships (P3) are a unique model where our knowledge of this area proves useful.  

Our team of experts works solely in the public finance space. As of December 2020, the Public Finance Group had loan balances of over $600 million. This is in addition to deposits totaling over $1.7 billion. Our work spans across Indiana, Ohio, Illinois and Michigan.  

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Government

First Merchants Bank delivers municipal finance solutions to local governments and related entities.

 
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Higher Education

First Merchants’ higher education finance group is focused on serving not-for-profit public and private colleges in the states we operate.

 
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Healthcare

Public Finance offers solutions for both day to day and long term plans in healthcare finance.

 
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Public-Private Partnerships

We are experienced in understanding and helping with both short and long term financing needs in public-private partnerships.  

 
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Not-For-Profit

First Merchants Public Finance is dedicated to providing solutions for nonprofit lending, investing, and treasury needs.
 

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Government

Are you seeking to improve operating efficiencies? Need to enhance security? Want to finance public services or infrastructure projects? Our government banking will meet your objectives.

 

Solutions:

Municipal Finance Lending

  • Fixed and variable rate direct purchases
  • Term loans 
  • Bridge financing

Deposit & Treasury Management

Investment Asset Management

  • Long-term investment management of excess funds
Recent Deals:
  • A local school district needed a way to free up cash flow.  We helped create interest savings by purchasing $2.69 million of General Obligation Bonds to refund a portion of their outstanding debt.  
  • We reduced interest payments and shortened the term for a municipal finance client’s debt through refinancing.  To help them achieve their goals, we provided this municipal water corporation assistance by purchasing revenue bonds for an amount $2.98 million. 
  • When a municipal sewage works needed to make improvements to better serve our communities, we purchased $8.3 million in Bond Anticipation Notes (BANs) and provided treasury solutions. 
  • Our municipal finance team facilitated community development through $7.84 million in Tax Increment Financing (TIF).  This funded a mixed-use development consisting of retail and office suites and market rate apartments. 

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Higher Education

Our team helps streamline operations, manage investments, mitigate risk, improve technology, and finance both operations and growth. We tailor this specifically to the needs of educational institutions like yours.

Solutions:

Loans for Private Colleges & Public Higher Education

  • Fixed and variable rate direct purchases
  • Lines of credit
  • Term loans 
  • Bridge financing

Deposit & Treasury Management

Investment Asset Management

  • Long-term investment management of endowment/foundation assets
  • Investment policy review and assistance/board education
Recent Deals:
  • We assisted an institution in Indiana with $9.6 million bonds through our higher education finance solutions.  Our team extended the maturity of an education facility revenue bond while reducing the interest which created a net present value savings. The bonds are secured by pledged revenues of the institution. 
  • Our higher education finance team helped a client prepare for potential concerns, based on projections of COVID-19 impact.  We provided this higher education institution the flexibility they needed by extending a revolving line of credit for $30 million with an accordion feature up to $50 million.  

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Healthcare

You may be looking for help with debt financing in healthcare, collections, investments, or payments. Whatever your needs, our team will provide you access to our bank’s full resources.

Solutions:

Healthcare Lending

  • Fixed and variable rate direct purchases
  • Lines of credit
  • Term loans 
  • Bridge financing

Deposit & Treasury Management

Investment Asset Management

  • Long-term investment management of excess funds
  • Investment management/consultation for foundation assets
Recent Deals:
  • We assisted an institution in Indiana with $9.6 million bonds through our higher education finance solutions.  Our team extended the maturity of an education facility revenue bond while reducing the interest which created a net present value savings. The bonds are secured by pledged revenues of the institution.  
  • Our higher education finance team helped a client prepare for potential concerns, based on projections of COVID-19 impact.  We provided this higher education institution the flexibility they needed by extending a revolving line of credit for $30 million with an accordion feature up to $50 million.  

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Public-Private Partnerships

Our team has successfully worked with various partners to implement credit facilities involving complex partnerships between public and private entities.
Solutions:

P3 Lending

  • Fixed and variable rate direct purchases
  • Lines of credit
  • Term loans 
  • Bridge financing

Deposit & Treasury Management

Recent Deals:
  • First Merchants Bank financed $9.6 million of a mixed-use development, totaling $20 million, which included student housing and retail, payable with Tax Increment Financing revenues.
  • Our team assisted a client in issuing $2.67 million of Property Assessed Clean Energy (PACE) bonds, used to finance clean energy initiatives as part of a $30 million+ hotel refurbishment.

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Not-For-Profit

First Merchants Public Finance is dedicated to providing solutions for non profit lending, investing, and treasury needs.   Partnering with us affords your organization the full resources of our firm.  We recognize the unique funding and financing challenges of NFPs like yours. We’re ready to support your needs. 

Solutions:

Non Profit Lending

  • Fixed and variable rate direct purchases
  • Lines of credit
  • Term loans 
  • Bridge financing

Deposit & Treasury Management

Investment Asset Management

  • Long-term investment management of endowment/foundation assets
  • Investment policy formation assistance or review / board education

Treasury Management

We help organizations achieve optimal operational efficiencies through effective cash flow management. Our team partners with you to understand your cash flow.  With this knowledge they provide ideas and solutions which enable your organization to manage receivables, payables and information more efficiently. All the while making sure they have the tools to help mitigate against fraud. 

  • Mitigate Fraud & Maintain Security
  • Accelerate Receivables
  • Streamline Payables
  • Maximize Cash Flow
  • Reduce Procurement Costs
  • Maximize Deposits
  • Manage Interest Expense

Credit Transactions

Our services span a wide array of credit transactions, and our public finance solutions are engineered to support the various types of organizations in this space.
  • General Obligation
    • Property Taxes / General Obligation of the issuing entity
  • Revenue
    • Utility 
    • Higher Education 
    • Healthcare
  • Public-Private Partnerships
    • Multiple repayment sources
    • Creative structures
  • Income Tax
  • Anticipation Notes
  • Tax Increment Financing (TIF)
  • Appropriation Backed
  • Lines of Credit

 

We’re ready to help. To get started today, contact us: