Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 260

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 260
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, primarily due to decreases of $9.6 million, $1.6 million, and $1.2 million in nonaccrual balances in construction, home equity, and commercial real estate, non-owner occupied loan classes, respectively.  The decrease was offset by an increase in nonaccrual balances within the commercial real estate, owner occupied loan portfolio of $6.7 million. 

At June 30, 2025, loans 90-days or more delinquent and still accruing totaled $4.4 million, a decrease of $1.5 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)June 30, 2025December 31, 2024Nonperforming Assets:Nonaccrual loans$67,358 $73,773 OREO and Repossessions177 4,948 Nonperforming assets 67,535 78,721 Loans 90-days or more delinquent and still accruing4,443 5,902 Nonperforming assets and loans 90-days or more delinquent$71,978 $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)June 30, 2025December 31, 2024Nonperforming assets and loans 90-days or more delinquent:Commercial and industrial loans$11,121 $10,100 Agricultural land, production and other loans to farmers19 75 Real estate loans:Construction15,063 28,312 Commercial real estate, non-owner occupied10,872 16,838 Commercial real estate, owner occupied9,352 2,440 Residential22,068 21,927 Home equity3,440 4,924 Individuals' loans for household and other personal expenditures43 7 Nonperforming assets and loans 90-days or more delinquent:$71,978 $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