Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 193

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 193
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 net cash provided by operating activities, and access to other funding sources.

The principal source of asset-funded liquidity is investment securities classified as available for sale, the market values of which totaled $1.4 billion at March 31, 2025, a decrease of $8.0 million, or 0.6 percent, from December 31, 2024.  Securities classified as held to maturity that are maturing within a short period of time can also be a source of liquidity.  Securities classified as held to maturity and that are maturing in one year or less totaled $5.3 million at March 31, 2025.  In addition, other types of assets such as cash and interest-bearing deposits with other banks, federal funds sold and loans maturing within one year are sources of liquidity.

The most stable source of liability-funded liquidity for both the long-term and short-term is deposit growth and retention in the core deposit base.  Federal funds purchased and securities sold under agreements to repurchase are also considered a source of liquidity.  In addition, FHLB advances and Federal Reserve Discount Window borrowings are utilized as a funding source.  At March 31, 2025, total borrowings from the FHLB were $972.5 million and there were no outstanding borrowings from the Federal Reserve Discount Window.  The Bank has pledged certain mortgage loans and investments to the FHLB and Federal Reserve.  The total available remaining borrowing capacity from the FHLB and Federal Reserve at March 31, 2025 was $625.4 million and $2.4 billion, respectively.

The following table presents the Corporation's material cash requirements from known contractual and other obligations at March 31, 2025:

Payments Due In(Dollars in Thousands)One Year or LessOver One YearTotalDeposits without stated maturity$12,578,428 $— $12,578,428 Certificates and other time deposits1,651,113 232,437 1,883,550 Securities sold under repurchase agreements122,947 — 122,947 Federal Home Loan Bank advances175,000 797,478 972,478 Federal Funds Purchased185,000 — 185,000 Subordinated debentures and other borrowings1,311 61,308 62,619 Total$14,713,799 $1,091,223 $15,805