Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 160

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 160
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 loans.  These mortgage banking derivatives are not designated in hedge relationships.  Fair values were estimated using observable market inputs, primarily changes in mortgage interest rates, from the date of the commitment to the reporting date.  Changes in the fair value of these mortgage banking derivatives are included in net gains and fees on sales of loans. The table below presents the fair value of the Corporation’s non-designated hedges, as well as their classification on the Consolidated Condensed Balance Sheets, as of June 30, 2025 and December 31, 2024. June 30, 2025December 31, 2024Notional AmountFair ValueNotional AmountFair ValueIncluded in other assets:Interest rate swaps$1,461,316 $56,401 $1,386,757 $76,528 Forward contracts related to mortgage loans to be delivered for sale37,97789439,142465Interest rate lock commitments39,06526515,000140Included in other assets$1,538,358 $57,560 $1,440,899 $77,133 Included in other liabilities:Interest rate swaps$1,592,815 $56,319 $1,486,764 $76,450 Forward contracts related to mortgage loans to be delivered for sale36,19422713,02018Interest rate lock commitments2,251614,457100Included in other liabilities$1,631,260 $56,552 $1,514,241 $76,568 In the normal course of business, the Corporation may decide to settle a forward contract rather than fulfill the contract.  Cash received or paid in this settlement manner is included in "Net gains and fees on sales of loans" in the Consolidated Condensed Statements of Income and is considered a cost of executing a forward contract.  The amount of gain (loss) recognized into income related to non-designated hedging instruments is included in the table below for the periods indicated.Derivatives Not Designated asHedging Instruments under FASB ASC 815-10Location of Gain (Loss)Recognized Income onDerivativeAmount of Gain (Loss)Recognized into Income onDerivativesThree Months Ended June 30, 2025Three Months Ended June 30, 2024Forward contracts related to mortgage loans to be delivered for saleNet gains and fees on sales of loans$306 $395 Interest rate lock commitmentsNet gains and fees