Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 87

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 87
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 principal amount of $65 million. As of December 31, 2023 the Corporation began the five years phase out (at a rate of 20 percent per year) as defined in the Basil III capital rules, which resulted in a reduction of $13 million in tier 2 capital. The Corporation exercised its right to redeem $40 million of the subordinated debt on the scheduled interest payment date during the first quarter of 2024 and redeemed the remaining $25.0 million during the second quarter of 2024. On April 1, 2022, the Corporation assumed $30.0 million of subordinated notes in conjunction with its acquisition of Level One.  The notes mature on December 18, 2029, and the Corporation has the option to redeem any or all of the subordinated notes without premium or penalty any time after December 18, 2024 or upon the occurrence of a tier 2 capital event or tax event. As of December 31, 2024, these subordinated debentures were classified as tier 2 capital and were subject to the five year phase-out.  The Corporation’s and Bank’s actual and required capital ratios as of December 31, 2024 and 2023 were as follows:Prompt Corrective Action ThresholdsActualBasel III Minimum Capital RequiredWell CapitalizedDecember 31, 2024AmountRatioAmountRatioAmountRatioTotal risk-based capital to risk-weighted assetsFirst Merchants Corporation$2,030,362 13.31 %$1,601,175 10.50 %N/AN/AFirst Merchants Bank1,967,738 12.89 1,602,417 10.50 $1,526,112 10.00 %Tier 1 capital to risk-weighted assetsFirst Merchants Corporation$1,767,468 11.59 %$1,296,189 8.50 %N/AN/AFirst Merchants Bank1,776,738 11.64 1,297,195 8.50 $1,220,889 8.00 %Common equity tier 1 capital to risk-weighted assetsFirst Merchants Corporation$1,742,468 11.43 %$1,067,450 7.00 %N/AN/AFirst Merchants Bank1,776,738 11.64 1,068,278 7.00 $