Company: FRME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000712534-25-000171
Chunk: 70

Company: FIRST MERCHANTS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 is 75.7 percent commercial oriented with the largest loan classes of commercial and industrial and commercial real estate, non-owner occupied, representing 33.3 percent and 16.3 percent of the total loan portfolio, respectively.  The increase was primarily driven by increases in commercial and industrial, commercial real estate, owner occupied, construction, public finance, and residential loans.  Partially offsetting those increases was a decrease in commercial real estate, non-owner occupied and individuals' loans for household and other personal expenditures.  Additional details of the changes in the Corporation's loans 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, and the "LOAN QUALITY AND PROVISION FOR CREDIT LOSSES ON LOANS" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations.

The Corporation’s ACL - Loans totaled $195.3 million as of June 30, 2025 and equaled 1.47 percent of total loans, compared to $192.8 million and 1.50 percent of total loans at December 31, 2024.  The ACL - Loans decreased $2.6 million from December 31, 2024.  During the three and six months ended June 30, 2025, the Corporation recorded net charge-offs of $2.3 million and $7.2 million, respectively, and $5.6 million and $9.8 million of provision for credit losses - loans, for the same periods respectively.  During the three and six months ended June 30, 2024, the Corporation recorded net charge-offs of $39.6 million and $41.9 million, respectively, and $24.5 million and $26.5 million of provision for credit losses - loans, for the same periods respectively.  Nonaccrual loans at June 30, 2025 were $67.4 million and decreased $6.4 million from December 31, 2024 primarily due to declines in nonaccrual balances of $9.6 million in construction, $1.6 million in home equity and $1.2 million in commercial real estate, non-owner occupied.  The decreases were partially offset by an increase in nonaccrual balances within the commercial real estate, owner occupied portfolio of $6.7 million.  The Corporation's reserve for unfunded commitments was $18