Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 216

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 216
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 portfolio.

The Corporation’s loan balances, excluding loans held for sale, increased $442.4 million from December 31, 2024 to $13.3 billion at June 30, 2025.  At June 30, 2025, the ACL - Loans totaled $195.3 million, which represents a decrease of $2.6 million from December 31, 2024.  As a percentage of loans, the ACL - Loans was 1.47 percent and 1.50 percent at June 30, 2025 and December 31, 2024, respectively.  

Net charge-offs totaling $2.3 million and $7.2 million were recognized for the three and six months ended June 30, 2025, respectively, and provision for credit losses of $5.6 million and $9.8 million, respectively, were recorded for the same periods in 2025.  Net charge-offs totaling $39.6 million and $41.9 million were recognized for the three and six months ended June 30, 2024, respectively, with $24.5 million and $26.5 million in provision for credit losses recorded in the same periods in 2024, respectively. 

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

The distribution of the net charge-offs (recoveries) for the three and six months ended June 30, 2025 and 2024 are reflected in the following table.

Three Months Ended June 30,Six Months Ended June 30, (Dollars in Thousands)2025202420252024Net charge-offs (recoveries):Commercial and industrial loans$592 $39,644 $4,521 $40,924 Real estate loans:Construction63 — 63 — Commercial real estate, non-owner occupied(20)(150)172 192 Commercial real estate, owner occupied(4)(11)200 (55)Residential210 129 580 495 Home equity1,125 (174)1,060 (124)Individuals' loans for household and other personal expenditures349 206 645 465 Total net charge-offs (recoveries)$2,315 $39,644 $7,241 $41,897 

Management continually