Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 180

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 180
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 of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000. Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings.  Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award.  To complete the exercise of vested stock options, RSAs and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income.The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards.Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024Stock and ESPP Options    Pre-tax compensation expense$28 $28 $82 $130 Income tax expense (benefit)(15)— (15)(40)Stock and ESPP option expense, net of income taxes$13 $28 $67 $90 Restricted Stock Awards    Pre-tax compensation expense$1,726 $1,409 $4,834 $4,061 Income tax expense (benefit)(292)(204)(927)(727)Restricted stock awards expense, net of income taxes$1,434 $1,205 $3,907 $3,334 Total Share-Based Compensation    Pre-tax compensation expense$1,754 $1,437 $4,916 $4,191 Income tax expense (benefit)(307)(204)(942)(767)Total share-based compensation expense, net of income taxes$1,447 $1,233 $3,974 $3,424 The grant date fair value of ESPP options was estimated to be approximately $28,000 at the beginning of the July 1, 2025 quarterly offering period.  The ESPP shares were purchased and issued during the three months ended September 30, 2025, resulting in no unrecognized compensation expense related to ESPP options at September 30, 2025.Stock option activity under the Corporation's stock option plans as of September 30,