Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 102

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 102
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PART II: ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATANOTES TO CONSOLIDATED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)

Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2024 and 2023: 20242023Deferred Tax Asset at December 31:  Assets:  Differences in Accounting for Credit Losses$51,186 $54,734 Differences in Accounting for Loan Fees2,193 2,398 Deferred Compensation3,950 4,021 Federal & State Income Tax Loss Carryforward and Credits1,166 600 Net Unrealized Loss on Securities Available for Sale50,084 46,161 Other5,771 6,716 Total Assets114,350 114,630 Liabilities: Differences in Depreciation Methods8,801 7,439 Differences in Accounting for Loans and Securities920 1,284 Differences in Accounting for Mortgage Servicing Rights2,280 1,987 Difference in Accounting for Pensions and Other Employee Benefits8,156 6,072 State Income Tax1,416 1,428 REIT Dividend Deferral677 2,979 Other6,208 8,692 Total Liabilities28,458 29,881 Net Deferred Tax Asset$85,892 $84,749 As of December 31, 2024, the Corporation has approximately $25.0 million of state NOL carryforwards available to offset future state taxable income, which will expire beginning in 2025.  These NOL carryforwards along with normal timing differences between book and tax result in total state deferred tax assets of $6.7 million.  Management believes it is more likely than not that the benefit of these state NOL carryforwards and other state deferred tax assets will be fully realized. The Corporation has additional paid-in capital that is considered restricted resulting from the acquisitions of CFS Bancorp, Inc. (“CFS”) and Ameriana Bancorp, Inc. (“Ameriana”) of approximately $13.4 million and $11.9 million, respectively.  CFS and Ameriana qualified as banks under provisions of the Internal Revenue Code which permitted them to deduct from taxable income an allowance for bad debts which differed from the provision for losses charged to income, for which no deferred