Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 143

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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 their classification on the Consolidated Condensed Balance Sheets, as of March 31, 2025, and December 31, 2024. March 31, 2025December 31, 2024Notional AmountFair ValueNotional AmountFair ValueIncluded in other assets:Interest rate swaps$1,381,111 $62,871 $1,386,757 $76,528 Forward contracts related to mortgage loans to be delivered for sale38,47257639,142465Interest rate lock commitments35,89028715,000140Included in other assets$1,455,473 $63,734 $1,440,899 $77,133 Included in other liabilities:Interest rate swaps$1,489,483 $62,785 $1,486,764 $76,450 Forward contracts related to mortgage loans to be delivered for sale37,00011313,02018Interest rate lock commitments15,9344614,457100Included in other liabilities$1,542,417 $62,944 $1,514,241 $76,568 In the normal course of business, the Corporation may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in "Net gains and fees on sales of loans" in the Consolidated Condensed Statements of Income and is considered a cost of executing a forward contract. The amount of gain (loss) recognized into income related to non-designated hedging instruments is included in the table below for the periods indicated.Derivatives Not Designated asHedging Instruments under FASB ASC 815-10Location of Gain (Loss)Recognized Income onDerivativeAmount of Gain (Loss)Recognized into Income onDerivativesThree Months Ended March 31, 2025Three Months Ended March 31, 2024Forward contracts related to mortgage loans to be delivered for saleNet gains and fees on sales of loans$(232)$(1)Interest rate lock commitmentsNet gains and fees on sales of loans201 (13)Total net gain (loss) recognized in income$(31)$(14)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 Standard & Poor’s at or above investment grade.  The Corporation’s mitigation of