Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 226

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 226
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YSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LOAN QUALITY AND PROVISION FOR CREDIT LOSSES ON LOANS

The Corporation’s primary lending focus is small business and middle market commercial, commercial real estate, public finance and residential real estate, which results in portfolio diversification.  Commercial loans are individually underwritten and judgmentally risk rated.  They are periodically monitored and prompt corrective actions are taken on deteriorating loans.  Consumer loans are typically underwritten with statistical decision-making tools and are managed throughout their life cycle on a portfolio basis.

Loan Maturities

The following tables present the maturity distribution of our loan portfolio, excluding loans held for sale, by collateral classification at March 31, 2025 according to contractual maturities of (1) one year or less, (2) after one year but within five years and (3) after five years.  The tables also present the portion of loans by loan classification that have fixed interest rates or variable interest rates that fluctuate over the life of the loans in accordance with changes in an interest rate index. 

March 31, 2025(Dollars in Thousands)MaturingWithin 1 YearMaturing1-5 YearsMaturing Over5 YearsTotalCommercial and industrial loans$762,002 $3,127,162 $417,433 $4,306,597 Agricultural land, production and other loans to farmers73,515 37,352 132,997 243,864 Real estate loans:Construction379,061 284,590 129,524 793,175 Commercial real estate, non-owner occupied373,711 1,160,255 643,903 2,177,869 Commercial real estate, owner occupied189,540 574,603 450,596 1,214,739 Residential27,455 157,833 2,204,564 2,389,852 Home Equity27,740 21,100 601,659 650,499 Individuals' loans for household and other personal expenditures21,835 85,301 33,818 140,954 Public finance and other commercial loans38,603 103,343 945,410 1,087,356 Total$1,893,462 $5,551,539 $5,559,904 $13,004,905 

March 31, 2025(Dollars