Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 99

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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$84,623 

The composition of nonperforming assets plus accruing loans 90-days or more delinquent is reflected in the following table by loan class. 

(Dollars in Thousands)June 30, 2025December 31, 2024Nonperforming assets and loans 90-days or more delinquent:Commercial and industrial loans$11,121 $10,100 Agricultural land, production and other loans to farmers19 75 Real estate loans:Construction15,063 28,312 Commercial real estate, non-owner occupied10,872 16,838 Commercial real estate, owner occupied9,352 2,440 Residential22,068 21,927 Home equity3,440 4,924 Individuals' loans for household and other personal expenditures43 7 Nonperforming assets and loans 90-days or more delinquent:$71,978 $84,623 

Provision Expense and Allowance for Credit Losses on Loans

The CECL model requires the measurement of all expected credit losses for financial assets measured at amortized cost based on historical experiences, current conditions and reasonable and supportable forecasts.  CECL also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as credit quality and underwriting standards of an organization's portfolio.  Additional details of the Corporation's CECL methodology and allowance calculation are discussed within NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES of the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q.

The CECL allowance is maintained through the provision for credit losses, which is a charge against earnings.  Based on management’s judgment as to the appropriate level of the allowance for credit losses, the amount provided in any period may be greater or less 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 $442.4 million from December 31, 2024 to $13.3 billion at June 30, 2025.  At June 30, 2025, the ACL - Loans totaled $195.3 million, which represents a decrease of $2.6 million from December 31, 2024.  As a percentage