Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 42

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 42
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 repayment prospects for the asset or in the Corporation’s credit position at some future date.  Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. •Substandard - Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.  Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt.  They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.•Doubtful - Loans that have all of the weaknesses of those classified as Substandard.  However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. •Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted.  Loans will be classified as Loss when it is neither practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

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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)

The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and gross charge-offs by year of origination for the years indicated. Consumer loans are not risk graded.  For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard.  The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. December 31, 2024Term Loans (amortized cost basis by origination year)20242023202220212020PriorRevolving loans amortized cost basisRevolving loans converted to termTotalCommercial and industrial loansPass$1,314,174 $493,138 $196,877 $158,215 $55,639 $49,554 $1,576,409 $130 $3,844,136 Special Mention14,982 13,282 20,837 1,097 2,222