Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 60

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings.  Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award.  To complete the exercise of vested stock options, RSAs and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income.The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards.Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Stock and ESPP Options    Pre-tax compensation expense$27 $35 $54 $102 Income tax expense (benefit)— (40)— (40)Stock and ESPP option expense, net of income taxes$27 $(5)$54 $62 Restricted Stock Awards    Pre-tax compensation expense$1,540 $1,316 $3,108 $2,652 Income tax expense (benefit)(307)(258)(635)(523)Restricted stock awards expense, net of income taxes$1,233 $1,058 $2,473 $2,129 Total Share-Based Compensation    Pre-tax compensation expense$1,567 $1,351 $3,162 $2,754 Income tax expense (benefit)(307)(298)(635)(563)Total share-based compensation expense, net of income taxes$1,260 $1,053 $2,527 $2,191 The grant date fair value of ESPP options was estimated to be approximately $27,000 at the beginning of the April 1, 2025 quarterly offering period.  The ESPP shares were purchased and issued during the three months ended June 30, 2025, resulting in no unrecognized compensation expense related to ESPP options at June 30, 2025.Stock option activity under the Corporation's stock option plans as of June 30, 2025 and changes during the six months ended June 30, 2025, were as follows:Number ofSharesWeighted-Average Exercise PriceWeighted Average