 MUNCIE, Ind., July 23, 2020 GLOBE NEWSWIRE -- First Merchants Corporation NASDAQ - FRME has reported second quarter 2020 net income of 33 million compared to 41.1 million during the same period in 2019. Earnings per share for the period totaled .62 per share compared to the second quarter of 2019 result of .83 per share. Year-to-date net income totaled 67.3 million compared to 79.9 million during the six months ended June 30, 2019. Year-to-date earnings per share totaled 1.24 compared to 1.61 during the same period in 2019. Total assets equaled 13.8 billion as of the quarter-ended June 30, 2020 and loans totaled 9.3 billion. The Corporations loan portfolio increased by 1.8 billion, or 23.7 percent, during the past twelve months. Investments increased 696 million, or 33.3 percent, during the same period and now totals 2.8 billion. Total deposits equaled 11 billion as of quarter-end and increased by 2.6 billion, or 31.8 percent, from the same period in 2019. Our acquisition of Monroe Bank Trust MBT, which closed on September 1, 2019, accounted for 733 million of loan growth and 1.1 billion of deposit growth. Additionally, Payroll Protection Program PPP loans accounted for 883 million of the periods loan growth. The loan to deposit ratio now totals 84.8 percent and loan to asset ratio totals 67.3 percent. As of June 30, 2020, the Corporations total risk-based capital ratio equaled 14.2 percent, the common equity tier 1 capital ratio equaled 11.8 percent, and the tangible common equity ratio totaled 9.31 percent. Excluding PPP loans, our tangible common equity ratio totaled 9.93 percent.The Corporations provision expense totaled 21.9 million and net charge-offs for the quarter totaled just 230,000. The allowance for loan losses totaled 121.1 million as of June 30, 2020, up from 81.3 million as of June 30, 2019. The Corporation chose to defer the adoption of the current expected credit loss CECL model so allowance for loan losses were calculated under the incurred loss method. Allowance for loan losses is 1.30 of total loans, 1.62 including remaining fair value marks with allowance, and 1.79 excluding PPP loans from total loans. The increased year-to-date provision expense of 41.6 million primarily reflects our view of increased credit risk related to the COVID-19 pandemic. Remaining fair value marks on purchased loans is 29.3 million.Michael C. Rechin, President and Chief Executive Officer, stated, Our financial results for the second quarter 2020 combine stressed economic conditions and net interest margin pressure with the opportunity to provide our clients access to the SBAs Payroll Protection Program. Our bankers really leaned into the PPP offering on behalf of businesses throughout our markets because it fits our culture and strategy as a largely commercial bank. Several thousand borrowers looked to the bank to assist their efforts in employee retention in a most challenging time. In the near-term, the magnitude of our participation grew our balance sheet substantially in loans and deposits. The funding affords borrowers time to weather the COVID-19 initiated recession. Rechin also added, Despite the reopening of Midwest economies and reducing unemployment, we recorded a 22 million provision reflecting our uncertain economic environment. With stay at home orders in place through much of the quarter, our technology proved to be a key point of service delivery for our clients. The results we achieved in pre-tax, pre-provision earnings, capital growth and efficiency remain at top quartile performance levels.Net-interest income for the quarter totaled 93 million, down 859,000 from the first quarter of 2020, as linked quarterly net interest margin declined by 27 basis points totaling 3.19 percent. Yields on earning assets decreased by 66 basis points totaling 3.72 percent and the cost of supporting liabilities decreased by 39 basis points and totaled 53 basis points. The addition of 883 million of PPP loans negatively impacted margin by 6 basis points, but the major driver was the decline in LIBOR from 99 basis points as of March 31, 2020 to just 16 basis points on June 30, 2020.Non-interest income totaled 26.5 million for the quarter, a 4.9 million increase over the second quarter of 2019, but a 3.3 million decrease from the first quarter of 2020. Gains from the sale of mortgage loans remain strong given the rate environment, while service charges on deposit accounts were less than planned due to higher than normal average balances per account. Non-interest expense totaled 60 million for the quarter compared to 57.6 million in the second quarter of 2019 and 66.2 million in the first quarter of 2020. The primary drivers of the linked quarterly results were a 2.3 million deferral of salary expense related to PPP loan originations, a 1.1 million reduction in bonus accruals and a 1.6 million decrease in processing fees related to termination of a debit card rewards program.CONFERENCE CALLFirst Merchants Corporation will conduct a second quarter earnings conference call and web cast at 2:30 p.m. ET on Thursday, July 23, 2020.To participate, dial Toll Free 877-507-0578 and reference First Merchants Corporations second quarter earnings release. International callers please call 1 412-317-1073. A replay of the call will be available until August 21, 2020. To access a replay of the call, US participants should dial Toll Free 877-344-7529, Canada participants should dial 855-669-9658, or for International participants, dial 1 412-317-0088. The replay access code is 10144066.In order to view the web cast and presentation slides, please go to during the time of the call. A replay of the web cast will be available until July 23, 2021.Detailed financial results are reported on the attached pages.About First Merchants CorporationFirst Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors as a division of First Merchants Bank.First Merchants Corporations common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the companys Internet web page MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.Forward-Looking StatementsThis release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like believe, continue, pattern, estimate, project, intend, anticipate, expect and similar expressions or future or conditional verbs such as will, would, should, could, might, can, may, or similar expressions. These statements include statements of First Merchants goals, intentions and expectations; statements regarding the First Merchants business plan and growth strategies; statements regarding the asset quality of First Merchants loan and investment portfolios; and estimates of First Merchants risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity, credit and interest rate risks associated with the First Merchants business; and other risks and factors identified in each of First Merchants filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants past results of operations do not necessarily indicate its anticipated future results. 