EXHIBIT 99


                     N / E / W / S   R / E / L / E / A / S / E


April 1, 2002


FOR IMMEDIATE RELEASE

FIRST MERCHANTS CORPORATION ANNOUNCES COMPLETION OF MERGER WITH LAFAYETTE
BANCORPORATION

Effective April 1, 2002, First Merchants Corporation of Muncie, Indiana,
successfully completed its previously announced merger with Lafayette
Bancorporation, Lafayette, Indiana. Lafayette Bancorporation's wholly owned
subsidiary, Lafayette Bank and Trust Company, has become the second largest
affiliate of First Merchants Corporation, as well as the western anchor for the
family of nine individually chartered banking companies located in north-central
and east-central Indiana.

Conditions of the merger call for shareholders of Lafayette Bancorporation to
receive approximately 2,773,059 shares of First Merchants Corporation common
stock and $50,866,560 in cash in exchange for their shares of Lafayette
Bancorporation common stock. Michael L. Cox, President and CEO of First
Merchants, said "we had hoped and anticipated that the Corporation would be
successful in putting approximately 40% of the consideration of this transaction
in cash. Remarkably, the shareholders of Lafayette elected very close to 40% in
cash and 60% in stock. This ratio validates all of our pro forma analysis and
permits us to honor the wishes of the former Lafayette shareholders." On a
combined basis, as of December 31, 2001, the two partners will now comprise $2.6
billion in assets, $1.9 billion in loans outstanding, $2.04 billion of customer
deposit funds, and total equity capital of $244 million. The transaction will
use the purchase method of accounting and the results of Lafayette's operations
for the last three quarters of 2002 will be included in First Merchants'
operations for 2002.

Two sitting directors of Lafayette Bancorporation have been invited to join the
First Merchants Corporation Board and will be elected at its next regularly
scheduled meeting. They are Mr. Richard A. Boehning, a prominent Lafayette
attorney, and Mr. Robert T. Jeffares, the retired Chief Financial Officer of
Great Lakes Chemical in Lafayette. Additionally, Mr. Robert J. Weeder, President
and CEO, will be elected a Senior Vice President of First Merchants Corporation.

Mr. Weeder commented as follows. "Working with First Merchants Corporation has
truly been a pleasure from the first day we talked. It is easy to see how they
have succeeded in growing their family of fine community banks. Our merger with
them brings enhanced liquidity to our shareholders, the capability to serve even
larger customers based on our combined capital strength, and a geographic
diversification to other parts of the state of Indiana - always a consideration
as we address economic shifts within our market. We look forward to growing our
companies together in the future."


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Mr. Cox remarked, "Lafayette Bank and Trust has a long history of excellent
performance. It is the largest community banking organization in a very
attractive growth market area. Bringing Lafayette Bank and Trust into the First
Merchants family results in a natural extension of our company's geographic
reach, and we are extremely pleased to have such an exemplary partner."

First Merchants Corporation is a financial holding company headquartered in
Muncie, Indiana. Along with Lafayette Bank and Trust, its other subsidiaries
include First Merchants Bank in Delaware and Hamilton Counties, Madison
Community Bank in Madison County, First United Bank in Henry County, Union
County National Bank (with offices in Union, Fayette, Wayne, and Butler (OH)
Counties), The Randolph County Bank, First National Bank of Portland in Jay
County, Decatur Bank & Trust Company in Adams County, and Frances Slocum Bank
(with offices in Wabash, Howard, and Miami Counties). The Corporation also
operates First Merchants Insurance Services, a full-service property casualty,
personal lines, and healthcare insurer, headquartered in Muncie, Indiana, and is
a majority member of Indiana Title Insurance Company, LLC, a title insurance
agency.

First Merchants Corporation's common stock is traded over-the-counter on the
NASDAQ National Market System under the symbol FRME and is rated A+ by Standard
& Poor's Corporation. Quotations are carried in daily newspapers and can be
found on the company's Internet web page (http:/www.firstmerchants.com). Eleven
brokerage firms make a market in First Merchants Corporation stock: Midwest
Research First Tennessee; Keefe, Bruyette & Woods, Inc.; Knight Securities,
L.P.; Herzog, Heine, Geduld, Inc.; Howe Barnes Investments, Inc.; Sandler
O'Neill & Partners; NatCity Investments, Inc.; Sherwood Securities Corp.; Spear,
Leeds & Kellog; RBC Capital Markets; and Stifel, Nicolaus & Company, Inc.

Questions may be directed to:

         Mr. Brian Edwards
         Vice President of Shareholder Relations
         First Merchants Corporation
         200 East Jackson Street
         Muncie, IN  47305-2814
         Telephone:  765/741-7278