Muncie-based First Merchants Corp. (Nasdaq: FRME) is reporting second quarter net income of $33 million, down from $41.1 million during the same period last year. The parent of First Merchants Bank says the drop was due to stressed economic conditions related to the coronavirus pandemic.
Chief Executive Officer Michael Rechin said, “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.”
Year-to-date net income totaled $67.3 million compared to $79.9 million during the same period in 2019.
Rechin 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 SBA’s 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.”
You can connect to the full earnings report by clicking here.