Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 228

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 228
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183 $4,096,201 $3,254,678 $8,913,062 

48

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 March 31, 2025, non-accrual loans totaled $81.9 million, an increase of $8.1 million from December 31, 2024, primarily due to increases of $6.8 million and $1.9 million in non-accrual balances in commercial real estate, owner occupied and residential, respectively.  The increase was offset by a decline in non-accrual balances within the commercial and industrial loan portfolio of $2.0 million. 

At March 31, 2025, loans 90-days or more delinquent and still accruing totaled $4.3 million, a decrease of $1.6 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)March 31, 2025December 31, 2024Nonperforming Assets:Non-accrual loans$81,922 $73,773 OREO and Repossessions4,966 4,948 Nonperforming assets (NPA)86,888 78,721 Loans 90-days or more delinquent and still accruing4,280 5,902 NPAs and loans 90-days or more delinquent$91,168 $84,623 

The composition of nonperforming assets plus accruing loans 90-days or more delinquent is reflected in the following table by loan class. 

(Dollars in Thousands)March 31, 2025December 31, 2024Nonperforming assets and loans 90-days or more delinquent:Commercial and industrial loans$10,041 $10,100 Agricult