Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 71

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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.0 million at June 30, 2025 and December 31, 2024, and is recorded in Other Liabilities.  Additional details of the Corporation's allowance methodology and asset quality are discussed within NOTE 4.  LOANS AND ALLOWANCE FOR CREDIT LOSSES of the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q and within the “LOAN QUALITY AND PROVISION FOR CREDIT LOSSES ON LOANS” section of this Management’s Discussion and Analysis of Financial Condition and Results of Operations.  

The Corporation's other assets decreased $6.3 million from December 31, 2024 and was driven by a decline in the fair value of derivatives included in other assets from $77.1 million at December 31, 2024 to $57.6 million at June 30, 2025.  The decrease in derivatives is due primarily to a decline in market interest rates. This decrease was partially offset by an increase of $11.9 million related to the Corporation's continual investment in community redevelopment funds. Additional details of the Corporation's investments in community redevelopment funds are discussed in NOTE 7. QUALIFIED AFFORDABLE HOUSING INVESTMENTS.

As of June 30, 2025, total deposits equaled $14.8 billion, an increase of $276.0 million from December 31, 2024, or 3.8 percent on an annualized basis.  The Corporation experienced increases from December 31, 2024 in money market and savings deposits of $461.9 million and brokered certificates of deposits of $221.6 million.  Partially offsetting these increases was a decrease in time deposits of $226.1 million and demand deposits of $181.4 million from December 31, 2024.  The overall deposit increase was driven primarily by an increase in wholesale deposits used to fund loan growth and a shift in the deposit mix from time deposits to money market as a result of product repricing.  Total deposits less 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