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