First Merchants's biggest risks in the FY2024 10-K
- Pandemic-related branch closures, remote work, and cyberattacks threaten operations and customer access.
- CECL accounting changes affect how First Merchants measures expected loan losses.
- Cybersecurity oversight and continuing technological change receive specific Board attention.
The risks most specific to First Merchants
- Operational Risks
An epidemic, a pandemic or any other infectious disease outbreak may result in a widespread health crisis that could adversely affect general commercial activity, the global economy (including the states and local economies in which we operate) and financial markets
Infectious disease outbreaks could close offices, restrict branch banking, weaken local economies, and increase remote-work cybersecurity threats.
- Operational Risks
The Corporation adopted Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326)
The CECL model requires expected lifetime loan losses, potentially changing First Merchants’ credit-loss measurements.
- Operational Risks
At the Information Security Committee, security-related policies and standards are reviewed and approved, annual risk assessment results and action plans are noted, annual penetration test reports shared, current security incidents discussed, and relevant cyber risks and trends are presented
Cybersecurity incidents and trends require oversight by the Risk and Credit Policy Committee, Audit Committee, and Information Security Committee.
- Operational Risks
In 2022, the Board appointed Jason Sondhi to its Board of Directors
Rapid technological change creates risk, while First Merchants relies on Board cybersecurity expertise covering detection, response, scanning, and security training.
Risk factor headings as read
Headings as the filing states them, in filing order.
Operational Risks
- 01An epidemic, a pandemic or any other infectious disease outbreak may result in a widespread health crisis that could adversely affect general commercial activity, the global economy (including the states and local economies in which we operate) and financial markets
- 02The Corporation adopted Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326)
- 03At the Information Security Committee, security-related policies and standards are reviewed and approved, annual risk assessment results and action plans are noted, annual penetration test reports shared, current security incidents discussed, and relevant cyber risks and trends are presented
- 04In 2022, the Board appointed Jason Sondhi to its Board of Directors
Other First Merchants 10-Ks
- FY2025 10-K risk factorsRisk factors section under review
Risk disclosures are essentially unchanged from the prior year.
Filed Feb 25, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.