Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 143

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 143
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 the ACL - Loans and percent of loans in each category to total loans, by collateral segment, as of the years indicated. 20242023202220212020(Dollars in Thousands)AmountPercentAmountPercentAmountPercentAmountPercentAmountPercentBalance at December 31:          Commercial$94,757 42.2 %$97,348 39.2 %$102,216 38.4 %$69,935 40.8 %$47,115 37.9 %Commercial real estate51,099 26.7 %44,048 28.5 %46,839 30.4 %60,665 33.8 %51,070 41.8 %Construction9,784 6.2 %24,823 7.7 %28,955 7.0 %20,206 5.6 %— — %Consumer— — %— — %— — %— — %9,648 1.4 %Residential— — %— — %— — %— — %22,815 18.9 %Consumer & Residential37,117 24.9 %38,715 24.6 %45,267 24.2 %44,591 19.8 %— — %Totals$192,757 100.0 %$204,934 100.0 %$223,277 100.0 %$195,397 100.0 %$130,648 100.0 %

The ACL - Loans decreased $12.2 million during the year ended December 31, 2024.  The allowance decreased primarily due to $49.4 million of net charge-offs during the year ended December 31, 2024. In 2024, the Corporation recorded $37.2 million in provision for credit losses - loans, which was offset by a release in reserve of $1.5 million related to the allowance for unfunded commitments, resulting in a net provision expense for the year ended December 31, 2024 of $35.7 million. The increase in net charge-offs was primarily related to two commercial relationships that accounted for $42.7 million of charge-offs. One borrower experienced a sudden change in revenue from the cancellation and