Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 72

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 72
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 in conjunction with the purchase of the Indianapolis regional headquarters building.  The secured borrowing bears a fixed interest rate of 3.41 percent, has a maturity date of March 2035, and had a balance of $7.1 million and $7.3 million as of December 31, 2024 and 2023, respectively. On April 1, 2022, the Corporation acquired a secured borrowing in conjunction with its acquisition of Level One.  The secured borrowing related to a certain loan participation sold by Level One that did not qualify for sales treatment.  The secured borrowing bears a fixed rate of 1.00 percent and had a balance of $1.1 million and $1.2 million as of December 31, 2024 and 2023, respectively.

87

PART II: ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATANOTES TO CONSOLIDATED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)

Line of Credit. As of December 31, 2024, there was no outstanding balance on the line of credit. •U.S. Bank, N.A.  On September 30, 2024, the Corporation entered into a Credit Agreement with U.S. Bank, N.A. (the “Lender”). Under the terms of the Credit Agreement, the Lender has provided the Corporation with a revolving line of credit of up to $75.0 million. The outstanding principal balance under the Credit Facility bears interest at a variable rate equal to the one-month Term SOFR rate plus 2.25 percent.  Interest on the outstanding balance is payable quarterly, and the Credit Facility has a maturity date of September 30, 2025. Additionally, the Corporation is subject to a non-refundable facility fee equal to 0.40 percent per annum on the average daily unused amount of the Credit Facility, payable quarterly.  The Credit Agreement contains customary representations, warranties and covenants.  As of December 31, 2024, the Corporation's outstanding principal balance under the Credit Facility was zero and the Corporation was in compliance with all covenants.

NOTE 12

DERIVATIVE FINANCIAL INSTRUMENTSRisk Management Objective of Using DerivativesThe Corporation is exposed to certain risks arising from both its business operations and economic conditions.  The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation