Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 265

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 265
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 plus accruing loans 90-days or more delinquent loans are presented in the table below.

(Dollars in Thousands)September 30, 2025December 31, 2024Nonperforming Assets:Nonaccrual loans$65,740 $73,773 Other real estate owned and repossessions1,270 4,948 Nonperforming assets 67,010 78,721 Loans 90-days or more delinquent and still accruing1,925 5,902 Nonperforming assets and loans 90-days or more delinquent$68,935 $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)September 30, 2025December 31, 2024Nonperforming assets and loans 90-days or more delinquent:Commercial and industrial loans$9,553 $10,100 Agricultural land, production and other loans to farmers254 75 Real estate loans:Construction12,922 28,312 Commercial real estate, non-owner occupied8,022 16,838 Commercial real estate, owner occupied6,622 2,440 Residential27,100 21,927 Home equity4,445 4,924 Individuals' loans for household and other personal expenditures17 7 Nonperforming assets and loans 90-days or more delinquent:$68,935 $84,623 

Provision Expense and Allowance for Credit Losses on Loans

The CECL model requires the measurement of all expected credit losses for financial assets measured at amortized cost based on historical experiences, current conditions and reasonable and supportable forecasts.  CECL also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as credit quality and underwriting standards of an organization's portfolio.  Additional details of the Corporation's CECL methodology and allowance calculation are discussed within NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES of the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q.

The CECL allowance is maintained through the provision for credit losses, which is a charge against earnings.  Based on management’s judgment as to the appropriate level of the allowance for credit losses, the amount provided in any period may be greater or less