Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 188

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 188
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 time deposits greater than $100,000, or core deposits, represented 90.9 percent of the deposit portfolio at June 30, 2025.  Noninterest bearing deposits represents 14.8 percent of the deposit portfolio at June 30, 2025, compared to 16.0 percent at December 31, 2024. The loan to deposit ratio increased to 90.1 percent at period end from 88.6 percent as of December 31, 2024. 

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PART I: FINANCIAL INFORMATIONITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The average account balance within the deposit portfolio was $37,000 at June 30, 2025.  Insured deposits totaled 70.3 percent of total deposits, with the State of Indiana's Public Deposit Insurance Fund, which insures certain public deposits, providing insurance to 14.7 percent of deposits and the FDIC providing insurance to the remaining 55.6 percent.  Only 29.7 percent of deposits are uninsured and our available liquidity is ample to cover those when considering both on balance sheet sources of liquidity and unused capacity from the Federal Reserve Discount Window, FHLB and unsecured borrowing sources.

Total borrowings increased $2.9 million as of June 30, 2025, compared to December 31, 2024.  This increase was primarily driven by an increase of $76.1 million in FHLB advances and partially offset by a decrease of $14.2 million in federal funds purchased from December 31, 2024.  Subordinated debentures and other borrowings decreased $30.9 million compared to December 31, 2024 as the Corporation utilized excess liquidity to pay down $30.0 million of subordinated debentures during the first quarter of 2025.  Securities sold under repurchase agreements decreased $28.1 million from December 31, 2024 as clients moved into other deposit products.  

The Corporation's other liabilities as of June 30, 2025 decreased $41.1 million compared to December 31, 2024. This decrease was partially due to a decrease in the derivative liabilities of $20.0 million, as a result of a decline in market interest rates. Additional decreases included accrued other expenses of $7.3 million, accrued salaries and incentives of $5.3 million, and unfunded commitments of $