Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 260

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 260
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 of capital, the calculation of which is prescribed in federal banking regulations.  The Federal Reserve focuses its assessment of capital adequacy on a component of tier 1 capital known as CET1.  Because the Federal Reserve has long indicated that voting common stockholders equity (essentially tier 1 risk-based capital less preferred stock and non-controlling interest in subsidiaries) generally should be the dominant element in tier 1 risk-based capital, this focus on CET1 is consistent with existing capital adequacy categories.  Tier I regulatory capital consists primarily of total common stockholders’ equity and subordinated debentures issued to business trusts categorized as qualifying borrowings, less non-qualifying intangible assets and unrealized net securities gains or losses.

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

A reconciliation of regulatory measures are detailed in the following table as of the dates indicated.

September 30, 2025December 31, 2024(Dollars in Thousands)First Merchants CorporationFirst Merchants BankFirst Merchants CorporationFirst Merchants BankTotal Risk-Based CapitalTotal Stockholders' Equity (GAAP)$2,412,402 $2,402,836 $2,304,983 $2,315,701 Adjust for Accumulated Other Comprehensive Loss (1)155,864 153,987 188,685 186,808 Less:  Preferred Stock(25,125)(125)(25,125)(125)Add:  Qualifying Capital Securities25,000 — 25,000 — Less:  Disallowed Goodwill and Intangible Assets(721,865)(721,417)(725,504)(725,056)Less:  Disallowed Deferred Tax Assets(418)(382)(571)(590)Total Tier 1 Capital (Regulatory)1,845,858 1,834,899 1,767,468 1,776,738 Qualifying Subordinated Debentures47,499 — 72,040 — Allowance for Credit Losses Includible in Tier 2 Capital200,885 201,037 190,854 191,000 Total Risk-Based Capital (Regulatory)$2,094,242 $2,035,936 $2,030,362 $1,967,738 Net Risk-Weighted Assets (Regulatory)$16,059,891