Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 56

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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199,370 $122,226 $798,626 $57,632 At September 30, 2025, the outstanding Federal Home Loan Bank ("FHLB") advances had interest rates from 0 percent to 4.56 percent and are subject to restrictions or penalties in the event of prepayment.  The total available remaining borrowing capacity from the FHLB at September 30, 2025, was $781.2 million.  As of September 30, 2025, the Corporation had $280.0 million of putable advances with the FHLB. Subordinated Debentures and Term Loans.  As of September 30, 2025 and December 31, 2024, subordinated debentures and term loans totaled  $57.6 million and $93.5 million, respectively.•First Merchants Capital Trust II (“FMC Trust II”).  At September 30, 2025 and December 31, 2024, the Corporation had $41.7 million of subordinated debentures issued to FMC Trust II, a wholly-owned statutory business trust.  FMC Trust II was formed in July 2007 for purposes of issuing trust preferred securities to investors.  At that time, it simultaneously issued and sold its common securities to the Corporation, which constituted all of the issued and outstanding common securities of FMC Trust II.  The subordinated debentures, which were purchased with the proceeds of the sale of the trust’s capital securities, are the sole assets of FMC Trust II and are fully and unconditionally guaranteed by the Corporation.  As of September 30, 2025 and December 31, 2024, the subordinated debentures and trust preferred securities bear interest at a variable rate equal to the three-month CME Term Secured Overnight Financing Rate ("SOFR"), plus the 0.26161 percent spread adjustment.  The interest rate at September 30, 2025 and December 31, 2024 was 5.86 percent and 6.18 percent, respectively.  The trust preferred securities are currently redeemable at par and without penalty, subject to the Corporation having first redeemed the related subordinated debentures, with the prior approval of the Board of Governors of the Federal Reserve System ("Federal Reserve") if then required under applicable capital guidelines or policies.  The trust preferred securities and the subordinated debentures of FMC Trust II will