Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 48

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 advantageous market — one that maximizes the asset’s sale price or minimizes the liability’s transfer cost. Valuation inputs reflect assumptions that market participants would use to price an asset or liability.  These inputs are categorized as either observable or unobservable.  Observable inputs are based on market data from independent sources and reflect assumptions market participants would use. Unobservable inputs are derived from the Corporation’s own estimates, reflecting assumptions market participants might use when market data is not available. These rely on the best available information at the measurement date.Inputs are ranked within a three-level fair value hierarchy. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are based on one or more of the following: quoted prices for similar assets, observable inputs such as interest rates or yield curves, or inputs corroborated by market data. Level 3 inputs are unobservable and reflect minimal market activity.An input is considered significant if it contributes 10 percent or more to the total fair value of the asset or liability.RECURRING AND NONRECURRING FAIR VALUE MEASUREMENTSAssets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly — such as daily, weekly, monthly, or quarterly.  Recurring valuation occurs at least on the measurement date.  Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement is not performed regularly and does not necessarily result in a change to the recorded balance sheet amount.  Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment and recorded at the lower of cost or fair value.  The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses.Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in theaccompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.Investment SecuritiesWhere quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.  As of September 30, 2025, and December 31, 2024 the Corporation did not hold any Level 1 securities.  Where significant observable inputs, other than Level 1 quoted prices, are available