Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 220

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 220
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 and Repossessions4,948 4,831 Nonperforming assets (NPA)78,721 58,411 Loans 90-days or more delinquent and still accruing5,902 172 NPAs and loans 90-days or more delinquent$84,623 $58,583 

The composition of nonperforming assets plus accruing loans 90-days or more delinquent is reflected in the following table by loan class.  

(Dollars in Thousands)December 31, 2024December 31, 2023Nonperforming assets and loans 90-days or more delinquent:  Commercial and industrial loans$10,100 $9,136 Agricultural land, production and other loans to farmers75 58 Real estate loans Construction28,312 520 Commercial real estate, non-owner occupied 16,838 16,652 Commercial real estate, owner occupied2,440 3,041 Residential21,927 25,178 Home equity4,924 3,945 Individual's loans for household and other personal expenditures7 19 Public finance and other commercial loans— 34 Nonperforming assets and loans 90-days or more delinquent$84,623 $58,583 

PROVISION EXPENSE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS    

The CECL model requires the measurement of all expected credit losses for financial assets measured at amortized cost based on historical experiences, current conditions and reasonable and supportable forecasts.  CECL also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as credit quality and underwriting standards of an organization's portfolio.  Additional details of the Corporation's CECL methodology and allowance calculation are discussed within NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

The CECL allowance is maintained through the provision for credit losses - loans, which is a charge against earnings.  Based on management’s judgment as to the appropriate level of the ACL - Loans, the amount provided in any period may be greater or less than net loan losses for the same period.  The determination of the provision amount and the adequacy of the allowance in any period is based on management’s continuing review and evaluation of the loan portfolio.

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PART II: ITEM