Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 132

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 132
---
 1 166,028 1 Public finance and other commercial loans1,059,083 — — — 1,059,083 — Loans$12,738,196 $35,773 $32,581 $47,809 $12,854,359 $5,902 Loans are reclassified to a nonaccruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest.  At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings.  Interest income accrued in prior years, if any, is charged to the allowance for credit losses.  Payments subsequently received on nonaccrual loans are applied to principal.  A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. The following table summarizes the Corporation’s nonaccrual loans by loan class as of the dates indicated.March 31, 2025December 31, 2024Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesNonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesCommercial and industrial loans$6,136 $736 $8,090 $4,937 Agricultural land, production and other loans to farmers70 — 75 — Real estate loans:Construction24,520 604 24,629 22,650 Commercial real estate, non-owner occupied13,403 10,976 12,118 10,153 Commercial real estate, owner occupied9,208 4,709 2,440 1,904 Residential23,347 — 21,491 — Home equity5,238 — 4,924 — Individuals' loans for household and other personal expenditures— — 6 — Loans$81,922 $17,025 $73,773 $39,644 

18

PART I. FINANCIAL INFORMATION ITEM 1. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(table dollar amounts in thousands, except share data)(Unaudited)

Interest income on nonaccrual loans is recognized only to the extent that cash payments are received in excess of principal due.  There was no interest income