News Release Details

First Merchants Announces 10.9% Increase in Cash Earnings Per Share

07/23/2001

First Merchants Corporation (NASDAQ - FRME) has reported that 2001 second quarter diluted cash earnings per share increased 10.9% to $.51, up from $.46 in the prior year. GAAP basis diluted earnings per share of $.48 were 6.7% above the same quarter in 2000 at $.45.

Year to date diluted cash basis earnings reached $.97 per share compared to $.90 in 2000, a 7.8% increase. GAAP basis diluted earnings per share at $.92 exceeded by 3.4% the $.89 reported in 2000.

Michael L. Cox, President and Chief Executive Officer commented that "widening margins contributed to growth in net interest income which exceeded 10%." Cox added "the economic activity in our market continues to remain stable, and, although moderating, loan growth continues at acceptable levels."

Revenues from non-interest sources also grew in double digits. Mortgage banking activity, trust services, and insurance services were all strong in the second quarter.

Detailed financial results are reported on the attached pages.

First Merchants Corporation is an East Central Indiana Financial Holding Company. Its subsidiaries include First Merchants Bank in Delaware and Hamilton Counties, the Madison Community Bank in Madison County, First United Bank in Henry County, Union County National Bank, The Randolph County Bank, the First National Bank of Portland in Jay County, Decatur Bank & Trust Company in Adams County, and First Merchants Insurance Services headquartered in Muncie, Indiana. On July 1, the company completed its acquisition of Francor Financial Corporation and its subsidiary Frances Slocum Bank and Trust. With $160 million in assets, Frances Slocum Bank operates offices in Wabash, Miami, and Howard Counties in Indiana.

First Merchants Corporation common stock is traded over-the-counter on the NASDAQ National Market System under the symbol FRME and is rated A+ by Standard and Poors Corporation. Quotations are carried in daily newspapers and can be found on the company's Internet Web page (http:firstmerchants.com). Nine brokerage firms make a market in First Merchants Corporation stock: Robert W. Baird & Co., Inc.; Herzog, Heine, Geduld, Inc.; Howe Barnes & Johnson, Inc.; Keefe, Bruyette & Woods, Inc.; Knight Securities, L.P.; McDonald Investments, Inc.; NatCity Investments, Inc.; Sherwood Securities Corp.; and Spear, Leads and Kellog.

For more information, contact:
James L. Thrash, Senior Vice President/Chief Financial Officer, 765-747-1390 http://firstmerchants.com
 
  • First Merchants Corporation

    200 East Jackson Street
    P.O. Box 792
    Muncie, IN 47305-2814

    (765) 747-1500

  • Investor Relations Contact

    Nicole M. Weaver
    765.521.7619 or
    800.262.4261, Ext. 47619

    nweaver@firstmerchants.com

  • Shareholder Relations Contact

    Cindy Holaday
    765.741.7278 or
    800.262.4261, Ext. 27278

    shareholderrelations
    @firstmerchants.com

  • Transfer Agent

    Broadridge
    PO Box 1342
    Brentwood, NY 11717-0718
    (888) 401-4448