Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 142

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 142
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,485)Recoveries: Commercial (1)3,153 995 872 724 819 Commercial real estate (2)236 60 1,096 580 431 Construction— — 863 1 — Consumer— — — — 260 Residential— — — — 666 Consumer & Residential1,477 1,341 1,096 1,273 — Total Recoveries4,866 2,396 3,927 2,578 2,176 Net Charge-offs(49,377)(25,643)(2,674)(9,306)(8,309)Provision for credit losses - loans37,200 7,300 — — 58,673 CECL Day 1 non-PCD provision for credit losses - loans— — 13,955 — — CECL Day 1 PCD ACL - loans— — 16,599 — — Balances, December 31$192,757 $204,934 $223,277 $195,397 $130,648 Ratio of net charge-offs during the period to average loans outstanding during the period0.39 %0.21 %0.02 %0.10 %0.09 %

(1) Category includes commercial and industrial, agricultural land, production and other loans to farmers, and other commercial loans.

(2) Category includes commercial real estate, non-owner occupied and commercial real estate, owner occupied. 

In calculating the ACL - Loans, the loan portfolio was pooled into loan segments with similar credit risk characteristics.  The Corporation pooled consumer and residential loans into one segment at adoption of CECL on January 1, 2021, but prior to adoption, consumer and residential loans were classified in separate segments.  Additionally, prior to CECL adoption, construction loans were classified within the commercial real estate segment, but after CECL adoption, construction loans were classified as a separate segment.  Details of the ACL - Loans and nonperforming loans are discussed within the “LOAN QUALITY” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.

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PART I: ITEM 1. BUSINESS

ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES

Presented below is an analysis of the composition of