Page 1

EX - 99.1 2 a2q21 earningsreleaseex991.htm EX - 99.1 N / E / W / SR / E / L / E / A / S / E July 26 , 2021 FOR IMMEDIATE RELEASE For more information , contact : Nicole M. Weaver , Vice President and Director of Corporate Administration 765-521-7619 http://www.firstmerchants.com SOURCE : First Merchants Corporation , Muncie , Indiana FIRST MERCHANTS CORPORATION ANNOUNCES SECOND QUARTER 2021 EARNINGS PER SHARE First Merchants Corporation ( NASDAQ - FRME ) has reported second quarter 2021 net income of $ 55.6 million compared to $ 33 million during the same period in 2020. Earnings per share for the period totaled $ 1.03 per share compared to the second quarter of 2020 result of $ .62 per share . Year - to - date net income totaled $ 105 million compared to $ 67.3 million during the six months ended June 30 , 2020. Year - to - date earnings per share totaled $ 1.94 compared to $ 1.24 during the same period in 2020 . Total assets equaled $ 14.9 billion as of the quarter - ended June 30 , 2021 and loans totaled $ 9.1 billion . The Corporation experienced organic loan growth of $ 289.6 million , or 3.4 percent during the last twelve months , offset by the forgiveness of Paycheck Protection Program ( " PPP " ) loans which accounted for a decline of $ 466.9 million . As a result , the loan portfolio decreased by $ 177.3 million , or 1.9 percent , during that period . Organic loan growth , on an annualized basis , was 6.7 percent in the second quarter 2021. Investments increased $ 1.4 billion , or 48.7 percent , during the last twelve months and now total $ 4.1 billion . Total deposits equaled $ 12.2 billion as of quarter - end and increased by $ 1.2 billion , or 11.3 percent , from the same period in 2020 . The Corporation's Allowance for Credit Losses Loans totaled $ 199.8 million as of quarter - end , or 2.19 % of total loans . Net charge - offs for the quarter totaled $ 1.3 million and no provision expense was recorded . Provision expense taken during the three and six months ended June 30 , 2020 of $ 21.9 million and $ 41.6 million , respectively , reflected our view of increased credit risk related to the COVID - 19 pandemic . Non - accrual loans as of quarter - end totaled $ 57.6 million . - Mark Hardwick , Chief Executive Officer , stated , “ Our management team is pleased with our record setting second quarter net income . It's very satisfying to achieve great financial results while serving our clients and communities . Our healthy levels of loan growth , earning asset growth , credit quality , capital levels and efficiency will lead us into the future . I am proud of our teammates for staying focused on our goals and continuously finding ways to win for our stakeholders . " Net - interest income for the quarter totaled $ 104.3 million , an increase of $ 11.2 million from the second quarter of 2020 , or 12.1 percent . Net interest margin , on a tax equivalent basis , totaling 3.22 percent , increased by 3 basis points compared to the second quarter of 2020. Yields on earning assets for the second quarter totaled 3.49 percent and cost of supporting liabilities totaled 27 basis points . Fair value accretion contributed less to margin as it accounted for 7 basis points in the second quarter of 2021 , compared to 12 basis points in the second quarter of 2020. PPP loans contributed 15 basis points to margin during the second quarter of 2021 , but subtracted 6 basis points from margin in the same quarter of 2020 . Non - interest income totaled $ 30.9 million for the quarter , a $ 4.4 million increase over the second quarter of 2020. Gains from the sale of mortgage loans were exceptionally strong and enhanced by a large portfolio mortgage loan sale contributing a gain of $ 2.9 million during the quarter . Fiduciary and wealth management fees increased $ 1.9 million over the second quarter of 2020 , which was offset by a decline in card payment fees due to the adoption of the Durbin Amendment . Non - interest expense totaled $ 69.3 million for the quarter compared to $ 60 million in the second quarter of 2020 and $ 66.1 million in the first quarter of 2021. Total expenses in the second quarter of 2020 were unusually low and reflected 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 . Total expenses increased on a linked quarter basis primarily due to increased salaries and incentives .