Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 159

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000. 

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PART I. FINANCIAL INFORMATION ITEM 1. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)(Unaudited)

Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings.  Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award.  To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income.The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards.Three Months Ended March 31, 20252024Stock and ESPP Options  Pre-tax compensation expense$27 $67 Income tax expense (benefit)— — Stock and ESPP option expense, net of income taxes$27 $67 Restricted Stock Awards  Pre-tax compensation expense$1,568 $1,335 Income tax expense (benefit)(328)(264)Restricted stock awards expense, net of income taxes$1,240 $1,071 Total Share-Based Compensation  Pre-tax compensation expense$1,595 $1,402 Income tax expense (benefit)(328)(264)Total share-based compensation expense, net of income taxes$1,267 $1,138 The grant date fair value of ESPP options was estimated to be approximately $27,000 at the beginning of the January 1, 2025 quarterly offering period.  The ESPP options vested during the three months ended March 31, 2025, leaving no unrecognized compensation expense related to unvested ESPP options at March 31, 2025.Stock option activity under the Corporation's stock option plans as of March