Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 69

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 69
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, the Corporation had $305.0 million of putable advances with the FHLB. Subordinated Debentures and Term Loans.  As of December 31, 2024 and 2023, subordinated debentures and term loans totaled $93.5 million and $158.6 million, respectively.•First Merchants Capital Trust II (“FMC Trust II”).  At December 31, 2024 and 2023, 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 December 31, 2024 and 2023, the subordinated debentures and trust preferred securities bear interest at a variable rate equal to the three-month CME Term Secured Overnight Financing Rate (“CME Term SOFR”), plus the 0.26161 percent spread adjustment.  The interest rate at December 31, 2024 and 2023, was 6.18 percent and 7.21 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 Federal Reserve if then required under applicable capital guidelines or policies.  The trust preferred securities and the subordinated debentures of FMC Trust II will mature on September 15, 2037.  The Corporation continues to hold all outstanding common securities of FMC Trust II. •Ameriana Capital Trust I.  At December 31, 2024 and 2023, the Corporation had $10.3 million of subordinated debentures issued to Ameriana Capital Trust I.  On December 31, 2015, the Corporation acquired Ameriana Capital Trust I in conjunction with its acquisition of Ameriana Bancorp, Inc.  With a trust preferred structure substantially similar to that described above for FMC Trust II, the subordinated debentures held by Ameriana Capital Trust