UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                        ------------------------------

                                    FORM 13F

                        ------------------------------

                               FORM 13F COVER PAGE

Report for the Calendar Year or Quarter Ended:  December 31, 2008

Check here if Amendment [ ]; Amendment Number:
This Amendment (Check only one.): [  ] is a restatement.
                                  [  ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:             TERRY L BLAKER
Address:          200 EAST JACKSON STREET
                  MUNCIE, IN   47305

13F File Number:  28-

The institutional  investment  manager filing this report and the person by whom
it is signed hereby  represent  that the person signing the report is authorized
to  submit  it,  that all  information  contained  herein is true,  correct  and
complete,  and  that it is  understood  that  all  required  items,  statements,
schedules, lists, and tables, are considered integral parts of this form.

Person signing this Report on Behalf of Reporting Manager:

Name:             Terry L Blaker
Title:            Senior Vice President
Phone:            (765) 747-1570

Signature, Place, and Date of Signing:

                  Terry L Blaker          Muncie, IN         January 12, 2009

Report Type (Check only one.):

[X]    13F HOLDING REPORT.
[ ]    13F NOTICE.
[ ]    COMBINATION REPORT.



                              FORM 13F SUMMARY PAGE

Report Summary:

Number of Other Included Managers:  None

Form 13F Information Table Entry Total: 217

Form 13F Information Table Value Total: $197,290,000


List of Other Included Managers:

None



                                                                  FORM 13F INFORMATION TABLE
                                                           VALUE   SHARES/  SH/ PUT/ INVSTMT    OTHER          VOTING AUTHORITY
        NAME OF ISSUER         TITLE OF CLASS     CUSIP   (X$1000) PRN AMT  PRN CALL DSCRETN   MANAGERS     SOLE    SHARED    NONE
------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- --------
                                                                                                      
ACCENTURE LTD CLASS A       COM                 G1150G111      881    26860 SH       SOLE                    26460      300      100
ACCENTURE LTD CLASS A       COM                 G1150G111       21      650 SH       DEFINED                   650        0        0
INGERSOLL RAND CL A         COM                 G4776G101      812    46850 SH       SOLE                    45500      900      450
INGERSOLL RAND CL A         COM                 G4776G101       63     3605 SH       DEFINED                  3605        0        0
AFLAC INC                   COM                 001055102      406     8850 SH       SOLE                     8625      225        0
AFLAC INC                   COM                 001055102        2       50 SH       DEFINED                    50        0        0
AT&T INC                    COM                 00206R102     3494   122601 SH       SOLE                   122119       50      432
AT&T INC                    COM                 00206R102      282     9880 SH       DEFINED                  6495        0     3385
ABBOTT LABS                 COM                 002824100     4059    76060 SH       SOLE                    74710     1050      300
ABBOTT LABS                 COM                 002824100      293     5489 SH       DEFINED                  4889        0      600
ALBERTO CULVER CO NEW       COM                 013078100      352    14350 SH       SOLE                    14350        0        0
ALBERTO CULVER CO NEW       COM                 013078100        7      300 SH       DEFINED                   300        0        0
APACHE CORP                 COM                 037411105      434     5820 SH       SOLE                     5420      400        0
APACHE CORP                 COM                 037411105        7      100 SH       DEFINED                   100        0        0
AUTOMATIC DATA PROCESSING   COM                 053015103     4620   117426 SH       SOLE                   115726     1150      550
AUTOMATIC DATA PROCESSING   COM                 053015103       39      990 SH       DEFINED                   990        0        0
BB & T CORPORATION          COM                 054937107      350    12750 SH       SOLE                    12750        0        0
BB & T CORPORATION          COM                 054937107       53     1925 SH       DEFINED                   925        0     1000
BP PLC - SPONS              ADR                 055622104     3216    68810 SH       SOLE                    68135      375      300
BP PLC - SPONS              ADR                 055622104     1465    31339 SH       DEFINED                 21839        0     9500
BALL CORP                   COM                 058498106     2588    62237 SH       SOLE                    62237        0        0
BANK OF AMERICA CORP        COM                 060505104      925    65716 SH       SOLE                    64416      600      700
BANK OF AMERICA CORP        COM                 060505104       62     4400 SH       DEFINED                  2900        0     1500
BANK OF NEW YORK MELLON CORPCOM                 064058100      488    17226 SH       SOLE                    16576      550      100
BANK OF NEW YORK MELLON CORPCOM                 064058100        5      160 SH       DEFINED                   160        0        0
BAXTER INTERNATIONAL INC    COM                 071813109      868    16190 SH       SOLE                    16190        0        0
BAXTER INTERNATIONAL INC    COM                 071813109        9      170 SH       DEFINED                   170        0        0
BED BATH & BEYOND           COM                 075896100      388    15285 SH       SOLE                    15285        0        0
BED BATH & BEYOND           COM                 075896100       23      895 SH       DEFINED                   895        0        0
BEST BUY COMPANY INC        COM                 086516101      546    19429 SH       SOLE                    19179      250        0
BEST BUY COMPANY INC        COM                 086516101       25      878 SH       DEFINED                   878        0        0
CATERPILLAR INC.            COM                 149123101     1247    27928 SH       SOLE                    27278      650        0
CATERPILLAR INC.            COM                 149123101       16      356 SH       DEFINED                   356        0        0
CHEVRON CORP                COM                 166764100     6290    85038 SH       SOLE                    83713      825      500
CHEVRON CORP                COM                 166764100      257     3475 SH       DEFINED                  2675        0      800
CHUBB CORP                  COM                 171232101      744    14582 SH       SOLE                    14582        0        0
CHUBB CORP                  COM                 171232101       26      510 SH       DEFINED                   510        0        0
CISCO SYSTEMS               COM                 17275R102     1855   113895 SH       SOLE                   112395     1100      400
CISCO SYSTEMS               COM                 17275R102       28     1695 SH       DEFINED                  1695        0        0
CITY NATIONAL               COM                 178566105      497    10215 SH       SOLE                     9865      350        0
CITY NATIONAL               COM                 178566105       59     1210 SH       DEFINED                  1210        0        0
COCA COLA CO                COM                 191216100     1103    24364 SH       SOLE                    24364        0        0
COCA COLA CO                COM                 191216100      109     2400 SH       DEFINED                  2400        0        0
COLGATE PALMOLIVE CO        COM                 194162103     1480    21596 SH       SOLE                    20646      850      100
COLGATE PALMOLIVE CO        COM                 194162103      127     1850 SH       DEFINED                   250        0     1600
CONOCOPHILLIPS              COM                 20825C104     2231    43073 SH       SOLE                    42023      900      150
CONOCOPHILLIPS              COM                 20825C104       85     1650 SH       DEFINED                  1650        0        0
COVANCE INC                 COM                 222816100      583    12660 SH       SOLE                    11860      700      100
COVANCE INC                 COM                 222816100       20      425 SH       DEFINED                   425        0        0
CULLEN FROST BANKERS        COM                 229899109      213     4195 SH       SOLE                     3895      300        0
CULLEN FROST BANKERS        COM                 229899109       23      460 SH       DEFINED                   460        0        0
DNP SELECT INCOME FUND                          23325P104      433    70399 SH       SOLE                    68369     1030     1000
DNP SELECT INCOME FUND                          23325P104       22     3600 SH       DEFINED                  3600        0        0
DANAHER CORP                COM                 235851102     1084    19155 SH       SOLE                    18455      600      100
DANAHER CORP                COM                 235851102       40      700 SH       DEFINED                   700        0        0
DEERE & CO                  COM                 244199105      254     6630 SH       SOLE                     5930      700        0
DEERE & CO                  COM                 244199105       21      550 SH       DEFINED                   550        0        0
DISNEY WALT COMPANY         COM                 254687106     1415    62395 SH       SOLE                    62320       75        0
DISNEY WALT COMPANY         COM                 254687106        7      300 SH       DEFINED                   300        0        0
DONALDSON INC               COM                 257651109      209     6210 SH       SOLE                     6010      200        0
DONALDSON INC               COM                 257651109        3      100 SH       DEFINED                   100        0        0
DOW CHEM CO                 COM                 260543103      702    46525 SH       SOLE                    45675      600      250
DOW CHEM CO                 COM                 260543103       40     2650 SH       DEFINED                  1250        0     1400
DU PONT E I DE NEMOURS      COM                 263534109      514    20337 SH       SOLE                    19587      750        0
DU PONT E I DE NEMOURS      COM                 263534109       12      470 SH       DEFINED                   470        0        0
EMERSON ELEC CO             COM                 291011104     3757   102631 SH       SOLE                   101431      800      400
EMERSON ELEC CO             COM                 291011104      185     5040 SH       DEFINED                  3040        0     2000
ENDO PHARM HLDG INC         COM                 29264F205      564    21805 SH       SOLE                    21005      700      100
ENDO PHARM HLDG INC         COM                 29264F205        9      340 SH       DEFINED                   340        0        0
EXELON CORP                 COM                 30161N101      617    11091 SH       SOLE                    11091        0        0
EXELON CORP                 COM                 30161N101       33      600 SH       DEFINED                   600        0        0
EXXON MOBIL CORP            COM                 30231G102     9800   122762 SH       SOLE                   121372      940      450
EXXON MOBIL CORP            COM                 30231G102     1182    14809 SH       DEFINED                 12761        0     2048
FPL GROUP INC               COM                 302571104     1218    24200 SH       SOLE                    23200     1000        0
FPL GROUP INC               COM                 302571104      161     3200 SH       DEFINED                  1200        0     2000
FIRST MERCHANTS CORP        COM                 320817109     2695   121377 SH       SOLE                   120275     1102        0
FIRST MERCHANTS CORP        COM                 320817109      275    12367 SH       DEFINED                 12367        0        0
GENERAL ELECTRIC CO         COM                 369604103     3633   224393 SH       SOLE                   220693     2250     1450
GENERAL ELECTRIC CO         COM                 369604103      340    21025 SH       DEFINED                 12925        0     8100
GRACO INC                   COM                 384109104      686    28915 SH       SOLE                    28915        0        0
GRACO INC                   COM                 384109104       10      425 SH       DEFINED                   425        0        0
HARRIS CORP DEL             COM                 413875105     1082    28440 SH       SOLE                    27890      550        0
HARRIS CORP DEL             COM                 413875105       19      495 SH       DEFINED                   495        0        0
HARSCO CORP                 COM                 415864107      645    23300 SH       SOLE                    23300        0        0
HEWLETT PACKARD CO          COM                 428236103     2290    63105 SH       SOLE                    62705        0      400
HEWLETT PACKARD CO          COM                 428236103      111     3050 SH       DEFINED                  3050        0        0
INTEL CORP                  COM                 458140100     2719   185445 SH       SOLE                   182145     2700      600
INTEL CORP                  COM                 458140100      113     7700 SH       DEFINED                  6700        0     1000
INTL BUSINESS MACHINES CORP COM                 459200101     1966    23358 SH       SOLE                    22858      350      150
INTL BUSINESS MACHINES CORP COM                 459200101       35      410 SH       DEFINED                   410        0        0
ISHARES LEHMAN AGGREGATE    BOND FUND           464287226      369     3537 SH       SOLE                     3537        0        0
MSCI EAFE INDEX SHARES                          464287465     3521    78480 SH       SOLE                    76105     1365     1010
MSCI EAFE INDEX SHARES                          464287465       72     1615 SH       DEFINED                  1615        0        0
BIOTECHNOLOGY I SHARES      COM                 464287556     1660    23370 SH       SOLE                    22695      625       50
BIOTECHNOLOGY I SHARES      COM                 464287556       31      440 SH       DEFINED                   440        0        0
S&P 400 MIDCAP GROWTH       ISHARES             464287606      749    13505 SH       SOLE                    13505        0        0
S&P 400 MIDCAP GROWTH       ISHARES             464287606       31      564 SH       DEFINED                   564        0        0
ISHARES RUSSELL 2000        I SHARES            464287655      669    13582 SH       SOLE                    12992      420      170
ISHARES RUSSELL 2000        I SHARES            464287655       14      285 SH       DEFINED                   285        0        0
S&P 400 MIDCAP VALUE        ISHARES             464287705      771    15343 SH       SOLE                    15343        0        0
S&P 400 MIDCAP VALUE        ISHARES             464287705       32      645 SH       DEFINED                   645        0        0
I SHARES S&P SMALL CAP 600  COM                 464287804      936    21294 SH       SOLE                    20531      427      336
I SHARES S&P SMALL CAP 600  COM                 464287804       51     1167 SH       DEFINED                  1167        0        0
S&P 600 SMALL CAP VALUE     ISHARES             464287879      449     9233 SH       SOLE                     9233        0        0
S&P 600 SMALL CAP VALUE     ISHARES             464287879       24      500 SH       DEFINED                   500        0        0
S&P 600 SMALL CAP GROWTH    ISHARES             464287887      450    10109 SH       SOLE                    10109        0        0
S&P 600 SMALL CAP GROWTH    ISHARES             464287887       24      528 SH       DEFINED                   528        0        0
J P MORGAN CHASE & CO       COM                 46625H100     3709   117674 SH       SOLE                   116874      200      600
J P MORGAN CHASE & CO       COM                 46625H100      453    14382 SH       DEFINED                 14382        0        0
JARDEN CORPORATION          COM                 471109108      115    10035 SH       SOLE                    10035        0        0
JOHNSON & JOHNSON           COM                 478160104     6101   101973 SH       SOLE                   100623     1150      200
JOHNSON & JOHNSON           COM                 478160104      544     9091 SH       DEFINED                  6291        0     2800
JOHNSON CTLS INC            COM                 478366107      406    22375 SH       SOLE                    21325      900      150
JOHNSON CTLS INC            COM                 478366107        5      250 SH       DEFINED                   250        0        0
KELLOGG CO                  COM                 487836108      256     5840 SH       SOLE                     5840        0        0
KIMBERLY CLARK CORP         COM                 494368103     1779    33725 SH       SOLE                    32975      500      250
KIMBERLY CLARK CORP         COM                 494368103       55     1050 SH       DEFINED                  1050        0        0
KOHL'S CORP                 COM                 500255104      808    22327 SH       SOLE                    21727      500      100
KOHL'S CORP                 COM                 500255104       34      945 SH       DEFINED                   945        0        0
LABORATORY CORP             COM                 50540R409      332     5160 SH       SOLE                     5160        0        0
LABORATORY CORP             COM                 50540R409        9      135 SH       DEFINED                   135        0        0
LILLY ELI & CO              COM                 532457108     5274   130971 SH       SOLE                   130571      100      300
LILLY ELI & CO              COM                 532457108       66     1650 SH       DEFINED                  1650        0        0
LINCOLN NATL CORP IND       COM                 534187109      180     9531 SH       SOLE                     9231      300        0
LINCOLN NATL CORP IND       COM                 534187109       11      600 SH       DEFINED                   600        0        0
LOWE'S COMPANIES INC        COM                 548661107     3790   176100 SH       SOLE                   173650     1850      600
LOWE'S COMPANIES INC        COM                 548661107       86     4015 SH       DEFINED                  3615        0      400
MASCO CORP                  COM                 574599106      412    37055 SH       SOLE                    36555      100      400
MASCO CORP                  COM                 574599106       17     1485 SH       DEFINED                  1485        0        0
MCDONALDS CORP              COM                 580135101      746    11995 SH       SOLE                    11995        0        0
MCDONALDS CORP              COM                 580135101      100     1610 SH       DEFINED                  1610        0        0
MEDTRONIC INCORPORATED      COM                 585055106     1303    41487 SH       SOLE                    40412      875      200
MEDTRONIC INCORPORATED      COM                 585055106       23      725 SH       DEFINED                   725        0        0
MICROSOFT CORPORATION       COM                 594918104     3575   183991 SH       SOLE                   182141     1650      200
MICROSOFT CORPORATION       COM                 594918104      154     7940 SH       DEFINED                  6940        0     1000
MICROCHIP TECHNOLOGY        COM                 595017104      929    47575 SH       SOLE                    46075     1300      200
MICROCHIP TECHNOLOGY        COM                 595017104       52     2675 SH       DEFINED                  2675        0        0
S&P 400 MIDCAP SPDR                             595635103     3989    41056 SH       SOLE                    40467      342      247
S&P 400 MIDCAP SPDR                             595635103      150     1539 SH       DEFINED                  1539        0        0
NORTHERN TR CORP            COM                 665859104      645    12370 SH       SOLE                    12180      150       40
NORTHERN TR CORP            COM                 665859104       11      215 SH       DEFINED                   215        0        0
NORTHROP GRUMMAN CORP       COM                 666807102       68     1520 SH       SOLE                     1520        0        0
NORTHROP GRUMMAN CORP       COM                 666807102      914    20290 SH       DEFINED                 20290        0        0
NVIDIA CORP                 COM                 67066G104      444    55060 SH       SOLE                    53335     1600      125
NVIDIA CORP                 COM                 67066G104       11     1425 SH       DEFINED                  1425        0        0
NUVEEN MUNI DIVIDEND ADVISOR                    67070X101      110    10980          SOLE                    10980        0        0
NUVEEN MUNI DIVIDEND ADVISOR                    67070X101       16     1600          DEFINED                  1600        0        0
OLD NATIONAL BANCORP        COM                 680033107      433    23884 SH       SOLE                    23884        0        0
ORACLE CORP                 COM                 68389X105      951    53677 SH       SOLE                    52527     1000      150
ORACLE CORP                 COM                 68389X105       47     2633 SH       DEFINED                  2633        0        0
PEPSICO INC                 COM                 713448108     5777   105473 SH       SOLE                   103873     1100      500
PEPSICO INC                 COM                 713448108      321     5855 SH       DEFINED                  5855        0        0
PFIZER INC                  COM                 717081103     1123    63465 SH       SOLE                    63065      200      200
PFIZER INC                  COM                 717081103       62     3500 SH       DEFINED                  2500        0     1000
PHILLIP MORRIS INTL INC     COM                 718172109        9      200 SH       SOLE                      200        0        0
PHILLIP MORRIS INTL INC     COM                 718172109      226     5195 SH       DEFINED                  2195        0     3000
T. ROWE PRICE GROUP INC     COM                 74144T108      814    22981 SH       SOLE                    22931        0       50
T. ROWE PRICE GROUP INC     COM                 74144T108       16      450 SH       DEFINED                   450        0        0
PRINCIPAL FINANCIAL GROUP   COM                 74251V102      288    12780 SH       SOLE                    12280      450       50
PRINCIPAL FINANCIAL GROUP   COM                 74251V102        4      160 SH       DEFINED                   160        0        0
PROCTER & GAMBLE CO         COM                 742718109     5908    95582 SH       SOLE                    94482      850      250
PROCTER & GAMBLE CO         COM                 742718109      371     6010 SH       DEFINED                  3010        0     3000
ROBERT HALF INTERNATIONAL   COM                 770323103      569    27355 SH       SOLE                    27355        0        0
ROBERT HALF INTERNATIONAL   COM                 770323103        9      445 SH       DEFINED                   445        0        0
S&P 500 INDEX SPDR ETF                          78462F103     1027    11385 SH       SOLE                    11385        0        0
SPDR MSCI ALL-COUNTRY WORLD EX-US INDEX ETF     78463X848     1997    85667 SH       SOLE                    85667        0        0
LEHMAN INTL TREASURY BD SPDR                    78464A516     3434    63125 SH       SOLE                    62772      353        0
LEHMAN INTL TREASURY BD SPDR                    78464A516       93     1710 SH       DEFINED                  1710        0        0
SCHLUMBERGER LTD            COM                 806857108     3300    77980 SH       SOLE                    76950      630      400
SCHLUMBERGER LTD            COM                 806857108       91     2154 SH       DEFINED                  2154        0        0
MATERIALS SELECT SECTOR SPDRCOM                 81369Y100      400    17605 SH       SOLE                    17425       80      100
MATERIALS SELECT SECTOR SPDRCOM                 81369Y100       11      465 SH       DEFINED                   465        0        0
SECTOR SPDR UTILITIES       COM                 81369Y886      360    12395 SH       SOLE                    12320        0       75
SECTOR SPDR UTILITIES       COM                 81369Y886       10      330 SH       DEFINED                   330        0        0
THE J.M. SMUCKER COMPANY    COM                 832696405      487    11231 SH       SOLE                    10881      300       50
THE J.M. SMUCKER COMPANY    COM                 832696405       11      265 SH       DEFINED                   265        0        0
SOUTHERN CO                 COM                 842587107     1581    42735 SH       SOLE                    42485       50      200
SOUTHERN CO                 COM                 842587107      200     5410 SH       DEFINED                  4710        0      700
STAPLES INC                 COM                 855030102     1858   103754 SH       SOLE                   101854     1600      300
STAPLES INC                 COM                 855030102       54     2995 SH       DEFINED                  2995        0        0
STRYKER CORP                COM                 863667101      972    24324 SH       SOLE                    23624      700        0
STRYKER CORP                COM                 863667101       10      250 SH       DEFINED                   250        0        0
SUPERVALU INC               COM                 868536103      177    12090 SH       SOLE                    12015       75        0
SUPERVALU INC               COM                 868536103       21     1445 SH       DEFINED                  1445        0        0
SYSCO CORP                  COM                 871829107     2980   129944 SH       SOLE                   127694     2050      200
SYSCO CORP                  COM                 871829107      108     4700 SH       DEFINED                  4700        0        0
TEVA PHARMACEUTICAL         ADR                 881624209      722    16970 SH       SOLE                    16470      500        0
TEVA PHARMACEUTICAL         ADR                 881624209       50     1165 SH       DEFINED                  1165        0        0
THERMO FISHER SCIENTIFIC INCCOM                 883556102      422    12400 SH       SOLE                    11900      500        0
3M COMPANY                  COM                 88579Y101      799    13886 SH       SOLE                    13636      250        0
3M COMPANY                  COM                 88579Y101      175     3050 SH       DEFINED                   850        0     2200
US BANCORP DEL              COM                 902973304     2648   105913 SH       SOLE                   103663     1800      450
US BANCORP DEL              COM                 902973304       64     2570 SH       DEFINED                  1570        0     1000
UNITED PARCEL SERVICE       COM                 911312106      187     3400 SH       SOLE                     3400        0        0
UNITED PARCEL SERVICE       COM                 911312106       55     1000 SH       DEFINED                  1000        0        0
UNITED TECHNOLOGIES CORP    COM                 913017109     6049   112882 SH       SOLE                   111282     1100      500
UNITED TECHNOLOGIES CORP    COM                 913017109       73     1355 SH       DEFINED                  1355        0        0
VF CORP                     COM                 918204108      441     8050 SH       SOLE                     7725      225      100
VF CORP                     COM                 918204108        4       75 SH       DEFINED                    75        0        0
VNGRD FTSE ALLWORLD EXUS ETF                    922042775     1899    58765 SH       SOLE                    58565        0      200
VECTREN CORP                COM                 92240G101     2053    82139 SH       SOLE                    80689     1250      200
VECTREN CORP                COM                 92240G101      147     5883 SH       DEFINED                  4118        0     1765
VERIZON COMMUNICATIONS INC  COM                 92343V104     2267    66908 SH       SOLE                    66108      550      250
VERIZON COMMUNICATIONS INC  COM                 92343V104       78     2292 SH       DEFINED                  2292        0        0
WAL MART STORES INC         COM                 931142103     3783    67487 SH       SOLE                    66887      300      300
WAL MART STORES INC         COM                 931142103      194     3455 SH       DEFINED                  3455        0        0
WALGREEN COMPANY            COM                 931422109      196     7962 SH       SOLE                     7912       50        0
WALGREEN COMPANY            COM                 931422109       15      600 SH       DEFINED                   600        0        0
WELLS FARGO & CO            COM                 949746101     5734   194556 SH       SOLE                   192056     1500     1000
WELLS FARGO & CO            COM                 949746101      276     9350 SH       DEFINED                  6950        0     2400
WEYERHAEUSER CO             COM                 962166104      420    13725 SH       SOLE                    13625        0      100
WEYERHAEUSER CO             COM                 962166104        3      100 SH       DEFINED                   100        0        0
WYETH                       COM                 983024100     1713    45691 SH       SOLE                    45291        0      400
WYETH                       COM                 983024100      113     3010 SH       DEFINED                   610        0     2400
ZIMMER HLDGS INC            COM                 98956P102      366     9064 SH       SOLE                     8729      335        0
ZIMMER HLDGS INC            COM                 98956P102       22      555 SH       DEFINED                   555        0        0

 GRAND TOTALS                                               197290  5659653                                5524746    58024    76883