Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 75

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 75
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 net gains and fees on sales of loans. The table below presents the fair value of the Corporation’s non-designated hedges, as well as their classification on the Consolidated Balance Sheets, as of December 31, 2024 and 2023. December 31, 2024December 31, 2023Notional AmountFair ValueNotional AmountFair ValueIncluded in other assets:Interest rate swaps$1,386,757 $76,528 $1,355,947 $78,743 Forward contracts related to mortgage loans to be delivered for sale39,14246515,160469Interest rate lock commitments15,00014022,706167Included in other assets$1,440,899 $77,133 $1,393,813 $79,379 Included in other liabilities:Interest rate swaps$1,486,764 $76,450 $1,355,947 $78,811 Forward contracts related to mortgage loans to be delivered for sale13,0201825,290191Interest rate lock commitments14,4571001,0256Included in other liabilities$1,514,241 $76,568 $1,382,262 $79,008 In the normal course of business, the Corporation may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in "Net gains and fees on sales of loans" in the Consolidated Statements of Income and is considered a cost of executing a forward contract. The amount of gain (loss) recognized into income related to non-designated hedging instruments is included in the table below for the periods indicated.Derivatives NotDesignated as HedgingInstruments underFASB ASC 815-10Location of Gain (Loss)Recognized inIncome on DerivativeAmount of Gain (Loss) Recognized in Income on Derivative202420232022Forward contracts related to mortgage loans to be delivered for saleNet gains and fees on sales of loans$832 $1,138 $1,112 Interest rate lock commitmentsNet gains and fees on sales of loans(121)185 71 Total net gain recognized in income$711 $1,323 $1,183 The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties.  The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or