Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 64

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 64
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 performed, the Corporation concluded goodwill was not impaired as of December 31, 2024 and 2023.For additional details related to impairment testing, see the “GOODWILL” 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.The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below.   20242023Gross carrying amount$123,285 $123,285 Accumulated amortization(103,457)(96,186)Total core deposit and other intangibles$19,828 $27,099  The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of two to ten years.  Amortization expense for the years ended December 31, 2024, 2023 and 2022, was $7.3 million, $8.7 million and $8.3 million, respectively. 

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PART II: ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATANOTES TO CONSOLIDATED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)

Estimated future amortization expense is summarized as follows:Amortization Expense2025$6,028 20264,910 20273,603 20282,852 20291,137 After 20291,298  $19,828 

NOTE 8

LEASESThe Corporation enters into leases for certain retail branches, office space, land and equipment.  Operating leases are included in other assets and the lease liability is included in other liabilities in the Consolidated Balance Sheets.  The Corporation does not have any finance leases. Right-of-use (“ROU”) assets represent the Corporation’s right to use an underlying asset for the lease term and lease liabilities represent the Corporation’s obligation to make lease payments arising from the lease.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  The Corporation uses its incremental borrowing rate at commencement date in determining the present value of lease payments when the rate implicit in a lease is not known.  The Corporation’s incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors.  The depreciable life of assets and leasehold improvements are limited by the expected