Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 31

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 31
---
12,730 — — 3,573 16,303 Residential4,846 298 25 1,740 6,909 Home equity261 — — — 261 Total$59,330 $298 $25 $9,544 $69,197 March 31, 2024Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotalCommercial and industrial loans$4,605 $— $— $98 $4,703 Real estate loans:Commercial real estate, owner occupied189 — 7 — 196 Residential— — 122 1,617 1,739 Home equity356 — — — 356 Total$5,150 $— $129 $1,715 $6,994 During the three months ended March 31, 2025, there were payment defaults of $9.5 million on loans to borrowers whose loans were modified due to financial difficulties within the previous twelve months.  The payment defaults did not materially impact the allowance for credit losses on loans.  There were $1.7 million payment defaults during the three months ended March 31, 2024 on loans that had been modified within the previous twelve months.Upon the Corporation's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged-off.  Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.Allowance for Credit Losses on LoansThe Allowance for Credit Losses on Loans ("ACL - Loans") is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over the contractual term.  The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge-offs for loans, net of recoveries.  Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans.  Loans are charged-off against the allowance when the uncollectibility of the loan is confirmed.  Expected recoveries do not exceed the aggregate of amounts previously charged