Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 12

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 has been recorded for these securities.  With regard to securities issued by states and municipalities and other investment securities held to maturity, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities.  Historical loss rates associated with securities having similar grades as those in the Corporation's portfolio have been insignificant.  Furthermore, as of March 31, 2025, there were no past due principal and interest payments associated with these securities.  The balance of the allowance for credit losses on investment securities held to maturity remained unchanged at $245,000 as of March 31, 2025 and December 31, 2024 based on applying the long-term historical credit rate, as published by Moody's, for similar rated securities.

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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)

On a quarterly basis, the Corporation monitors the credit quality of investment securities held to maturity through the use of credit ratings. The following table summarizes the amortized cost of investment securities held to maturity at March 31, 2025 and December 31, 2024, aggregated by credit quality indicator. March 31, 2025U.S. Government-sponsored agency securities (1)State and municipalU.S. Government-sponsored mortgage-backed securities (1)Foreign investmentTotalCredit Rating:Aaa$341,245 $120,618 $626,444 $— $1,088,307 Aa1— 149,926 — — 149,926 Aa2— 183,052 — — 183,052 Aa3— 185,117 — — 185,117 A1— 65,659 — — 65,659 A2— 20,321 — — 20,321 Non-rated— 354,995 — 1,500 356,495 Total$341,245 $1,079,688 $626,444 $1,500 $2,048,877 December 31, 2024U.S. Government-sponsored agency securities (1)State and municipalU.S. Government-sponsored mortgage-backed securities (1