Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 266

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 266
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 than net loan losses for the same period.  The determination of the provision amount and the adequacy of the allowance in any period is based on management’s continuing review and evaluation of the loan portfolio.

The Corporation’s loan balances, excluding loans held for sale, increased $736.8 million from December 31, 2024 to $13.6 billion at September 30, 2025.  At September 30, 2025, the ACL - Loans totaled $194.5 million, which represents an increase of $1.7 million from December 31, 2024.  As a percentage of loans, the ACL - Loans was 1.43 percent and 1.50 percent at September 30, 2025 and December 31, 2024, respectively.  

Net charge-offs totaling $5.1 million and $12.4 million were recognized for the three and nine months ended September 30, 2025, respectively, and provision for credit losses of $4.3 million and $14.1 million, respectively, were recorded for the same periods in 2025.  Net charge-offs totaling $6.7 million and $48.6 million were recognized for the three and nine months ended September 30, 2024, respectively, with $5.0 million and $31.5 million in provision for credit losses recorded in the same periods in 2024, respectively. 

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PART I: FINANCIAL INFORMATIONITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The distribution of the net charge-offs (recoveries) for the three and nine months ended September 30, 2025 and 2024 are reflected in the following table.

Three Months Ended September 30,Nine Months Ended September 30, (Dollars in Thousands)2025202420252024Net charge-offs (recoveries):Commercial and industrial loans$3,605 $5,870 $8,126 $46,794 Real estate loans:Construction— — 63 — Commercial real estate, non-owner occupied200 — 372 192 Commercial real estate, owner occupied187 (18)387 (73)Residential869 600 1,449 1,095 Home equity(99)(222)961 (346)Individuals' loans for household and other personal