Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 214

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 214
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480 Real estate loans:Construction382,703 310,916 17,608 711,227 Commercial real estate, non-owner occupied251,885 780,635 506,531 1,539,051 Commercial real estate, owner occupied47,738 319,232 351,770 718,740 Residential6,406 54,564 1,328,311 1,389,281 Home Equity15,008 10,617 613,171 638,796 Individuals' loans for household and other personal expenditures20,348 22,145 16,480 58,973 Public finance and other commercial loans39,756 47,741 26,011 113,508 Total loans with variable interest rates$1,579,843 $4,368,526 $3,266,385 $9,214,754 

53

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

Loan Quality

The quality of the loan portfolio and the amount of nonperforming loans may increase or decrease as a result of acquisitions, organic portfolio growth, problem loan recognition and resolution through collections, sales or charge-offs.  The performance of any loan can be affected by external factors such as economic conditions, or internal factors specific to a particular borrower, such as the actions of a customer's internal management.

At June 30, 2025, nonaccrual loans totaled $67.4 million, a decrease of $6.4 million from December 31, 2024, primarily due to decreases of $9.6 million, $1.6 million, and $1.2 million in nonaccrual balances in construction, home equity, and commercial real estate, non-owner occupied loan classes, respectively.  The decrease was offset by an increase in nonaccrual balances within the commercial real estate, owner occupied loan portfolio of $6.7 million. 

At June 30, 2025, loans 90-days or more delinquent and still accruing totaled $4.4 million, a decrease of $1.5 million from December 31, 2024.  

The Corporation's nonperforming assets plus accruing loans 90-days or more delinquent loans are presented in the table below.

(Dollars in Thousands)June 30, 2025December