Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 63

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 63
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 letters of credit$71,271 $65,580 

82

PART II: ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATANOTES TO CONSOLIDATED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)

The Corporation maintains an accrual for credit losses on off-balance sheet commitments using the CECL methodology. Reserves for unfunded commitments declined by $1.5 million and $3.8 million during the years ended December 31, 2024 and 2023, respectively.  This reserve level remains appropriate and is reported in Other Liabilities as of December 31, 2024 in the Consolidated Balance Sheets.The following table details activity in the ACL for off-balance sheet commitments:20242023Balance, January 1$19,500 $23,300 Provision for credit losses - unfunded commitments(1,500)(3,800)Balance, December 31$18,000 $19,500 

NOTE 6

PREMISES AND EQUIPMENTThe following table summarizes the Corporation’s premises and equipment as of December 31, 2024 and 2023: 20242023Cost at December 31:  Land$24,785 $25,655 Buildings and Leasehold Improvements185,741 186,444 Equipment153,011 148,258 Total Cost363,537 360,357 Accumulated Depreciation and Amortization(233,794)(226,461)Net$129,743 $133,896 First Merchants Corporation sold five Illinois branches in the fourth quarter of 2024 which resulted in reductions to premises and equipment of $3.2 million.  Details regarding the branch sale are discussed in NOTE 2. ACQUISITIONS AND DIVESTITURES of these Notes to Consolidated Financial Statements.The Corporation is committed under various non-cancelable lease contracts for certain subsidiary office facilities and equipment.  Details regarding the lease contracts are discussed in NOTE 8. LEASES of these Notes to Consolidated Financial Statements.

NOTE 7

GOODWILL AND OTHER INTANGIBLESThe Corporation’s goodwill was $712.0 million for the years ended December 31, 2024 and 2023.During the fourth quarter of 2024 and 2023, the Corporation performed its annual goodwill impairment testing and the fair value exceeded the Corporation’s carrying value. Based on the analysis