Company: FRME
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000712534-25-000058
Chunk: 52

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 52
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 generally based on appraisals by qualified licensed appraisers.  The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach.  If an appraisal is not available, the fair value may be determined by using a cash flow analysis.  Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements.  Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.The following tables present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses, for December 31, 2024 and 2023.  The total collateral dependent loans for December 31, 2024 increased $24.1 million from December 31, 2023.  The primary changes were related to an increase of $22.6 million and $10.1 million, respectively, in the construction and commercial real estate, non-owner occupied loan classes, which was offset by a decrease of $8.6 million in the commercial and industrial loan class.  December 31, 2024Commercial Real EstateResidential Real EstateOtherTotalAllowance on Collateral Dependent LoansCommercial and industrial loans$— $— $23,455 $23,455 $7,803 Real estate loans:Construction— 22,652 — 22,652 — Commercial real estate, non-owner occupied27,583 — — 27,583 4,295 Commercial real estate, owner occupied9,748 — — 9,748 — Residential— 1,174 — 1,174 189 Home equity— 201 — 201 25 Loans$37,331 $24,027 $23,455 $84,813 $12,312 December 31, 2023Commercial Real EstateResidential Real EstateOtherTotalAllowance on Collateral Dependent LoansCommercial and industrial loans$— $— $32,029 $32,029 $11,474 Real estate loans:Construction— 7 — 7 — Commercial real estate, non-owner occupied17,516 — —