Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 160

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 160
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 interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles.  Some consumer loans, such as small installment loans and certain lines of credit, are unsecured.  Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can also be impacted by changes in property values.  Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.The ACL - Loans decreased $0.8 million and increased $1.7 million during the three and nine months ended September 30, 2025, respectively.  Net charge-offs totaled $5.1 million and $12.4 million during the three and nine months ended September 30, 2025, respectively.  Provision expense of $4.3 million and $14.1 million was recorded during the three and nine months ended September 30, 2025, respectively.  The following tables summarize changes in the allowance for credit losses by loan segment for the three and nine months ended September 30, 2025 and 2024.Three Months Ended September 30, 2025CommercialCommercial Real EstateConstructionConsumer & ResidentialTotalAllowance for credit losses - loansBalances, June 30, 2025$98,984 $46,277 $8,743 $41,312 $195,316 Provision for credit losses - loans3,632 1,252 (2,257)1,673 4,300 Recoveries on loans914 4 — 433 1,351 Loans charged off(4,519)(391)— (1,589)(6,499)Balances, September 30, 2025$99,011 $47,142 $6,486 $41,829 $194,468 

26

PART I. FINANCIAL INFORMATION ITEM 1. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)(Unaudited)

Three Months Ended September 30, 2024CommercialCommercial Real EstateConstructionConsumer & ResidentialTotalAllowance for credit losses - loansBalances, June 30, 2024$91,217 $45,514 $14,360 $38,446 $189,537 Provision for credit losses - loans8