Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 100

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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 of loans, the ACL - Loans was 1.47 percent and 1.50 percent at June 30, 2025 and December 31, 2024, respectively.  

Net charge-offs totaling $2.3 million and $7.2 million were recognized for the three and six months ended June 30, 2025, respectively, and provision for credit losses of $5.6 million and $9.8 million, respectively, were recorded for the same periods in 2025.  Net charge-offs totaling $39.6 million and $41.9 million were recognized for the three and six months ended June 30, 2024, respectively, with $24.5 million and $26.5 million in provision for credit losses recorded in the same periods in 2024, respectively. 

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PART I: FINANCIAL INFORMATIONITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The distribution of the net charge-offs (recoveries) for the three and six months ended June 30, 2025 and 2024 are reflected in the following table.

Three Months Ended June 30,Six Months Ended June 30, (Dollars in Thousands)2025202420252024Net charge-offs (recoveries):Commercial and industrial loans$592 $39,644 $4,521 $40,924 Real estate loans:Construction63 — 63 — Commercial real estate, non-owner occupied(20)(150)172 192 Commercial real estate, owner occupied(4)(11)200 (55)Residential210 129 580 495 Home equity1,125 (174)1,060 (124)Individuals' loans for household and other personal expenditures349 206 645 465 Total net charge-offs (recoveries)$2,315 $39,644 $7,241 $41,897 

Management continually evaluates the commercial loan portfolio by including consideration of specific borrower cash flow analysis and estimated collateral values, types and amounts on nonperforming loans, past and anticipated credit loss experience, changes in the composition of the loan portfolio, and the current condition and amount of loans outstanding.  The determination of the provision for credit losses in any period is based on management’s continuing review and evaluation of the loan portfolio, and its judgment as to the impact of current economic conditions on