Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 141

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 141
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 2021 and 2020, OREO did not include any acquired assets. 

In addition to the nonperforming loans discussed above, management also identified loans totaling $746.1 million and $515.2 million as of December 31, 2024 and 2023, respectively, that were deemed to be risk graded criticized.  A loan risk graded criticized is a loan in which there are concerns regarding the borrower’s ability to comply with the repayment terms and would include loans graded special mention or worse.  Consumer loans are not risk graded.  However, for purposes of disclosure, the consumer loans are classified as follows: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. 

See additional information regarding loan credit quality in the “LOAN QUALITY” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K and in NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

SUMMARY OF CREDIT LOSS EXPERIENCE

The following table summarizes the credit loss experience, by collateral segment, for the years indicated:

(Dollars in Thousands)20242023202220212020Allowance for credit losses - loans:  Balances, January 1$204,934 $223,277 $195,397 $130,648 $80,284 Impact of adopting ASC 326— — — 74,055 — Balances, January 1, 2021 Post-ASC 326 adoption204,934 223,277 195,397 204,703 80,284 Charge-offs:Commercial (1)(50,199)(23,264)(1,215)(5,849)(8,536)Commercial real estate (2)(352)(116)(3,017)(4,533)(313)Construction— — — (6)— Consumer— — — — (643)Residential— — — — (993)Consumer & Residential(3,692)(4,659)(2,369)(1,496)— Total Charge-offs(54,243)(28,039)(6,601)(11,884)(10