Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 227

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 227
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 rates. While the base sensitivity analysis incorporates management’s best estimate of interest rate and balance sheet dynamics under various market rate movements, the actual behavior and resulting earnings impact will likely differ from that projected.  For certain assets, the base simulation model captures the expected prepayment behavior under changing interest rate environments.  Assumptions and methodologies regarding the interest rate or balance behavior of indeterminate maturity products, such as savings, money market, interest-bearing and demand deposits, reflect management’s best estimate of expected future behavior.  Historical retention rate assumptions are applied to nonmaturity deposits for modeling purposes.

The comparative rising 200 and 100 basis points and falling 200 and 100 basis points scenarios below, as of December 31, 2024 and 2023, assume further interest rate changes in addition to the base simulation discussed above.  These changes are immediate and parallel changes to the base case scenario. 

Results for rising 200 and 100 basis points and falling 200 and 100 basis points interest rate scenarios are listed below based upon the Corporation’s rate sensitive assets and liabilities at December 31, 2024 and 2023.  The change from the base case represents cumulative net interest income over a twelve-month time horizon.  Balance sheet assumptions used for the base scenario are the same for the rising and falling simulations.

December 31, 2024December 31, 2023Rising 200 basis points from base case4.1%4.0 %Rising 100 basis points from base case2.5%2.1 %Falling 100 basis points from base case(2.2)%(5.0)%Falling 200 basis points from base case(4.5)%(7.8)%

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PART II: ITEM 7. AND ITEM 7A. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

DEPOSITS AND BORROWINGS

The table below reflects the level of deposits and borrowed funds at December 31, 2024 and 2023.

December 31,December 31,(Dollars in Thousands)20242023Deposits:Demand deposits$7,980,061 $7,965,862 Savings deposits4,522,758 4,516,433 Certificates and other time deposits of $100,000 or more1,043,068 1,408,985 Other certificates and time deposits692,068 849,