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FRMEFirst Merchants Corporation
$42.84$2.7B
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FRME logoFirst Merchants Corporation(FRME)Earnings, Financials & Key Ratios

FRME•NASDAQ•Banking & Credit
$42.84
11.0× P/E·Price updated Jul 7, 2026
SectorFinancial ServicesIndustryRegional BanksSub-IndustryCommunity and retail regional banks
AboutFirst Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services. It accepts time, savings, and demand deposits; and provides consumer, commercial, agri-business, and real estate mortgage loans, as well as public finance. The company also offers personal and corporate trust; brokerage and private wealth management; and letters of credit, repurchase agreements, and other corporate services. It operates 109 banking locations in Indiana, Illinois, Ohio, and Michigan counties. The company also offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.Show more
  • Net Interest Income$536M+2.9%
  • Total Revenue$1.05B-0.3%
  • Net Income$226M+12.2%
  • Return on Equity9.47%+7.1%
  • Net Interest Margin2.82%-1.0%
  • Efficiency Ratio36.28%+6.4%
  • ROA1.21%+10.4%
  • Equity / Assets12.97%+3.0%
  • Book Value per Share42.73+8.5%

FRME Price & Volume

First Merchants Corporation (FRME) stock price & volume — 10-year historical chart

Loading chart...

Persistent Margin Stagnation Challenges Regional Growth Outlook

Investment Thesis • Updated 2026Q1

VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Stable
Primary Risk:Regional economic concentration risk

Key Thesis Takeaways

  • First Merchants Corporation faces a complex outlook characterized by a decade-long stagnation of its net interest margin at 0.7%, which continues to constrain profitability despite a 16.1% year-over-year increase in net interest income as of 2026Q1.
  • While the bank maintains a stable equity-to-assets ratio of 0.13, investors should monitor the volatility in the efficiency ratio, which widened to 49.0% in the most recent quarter, signaling potential pressure on operating leverage.
  • The firm's reliance on strategic investment sales to bolster liquidity, evidenced by $295.3 million in proceeds during 2026Q1, suggests that management is actively navigating a challenging funding environment that warrants cautious observation.

Verdict Logic

while the 3.3% dividend yield provides income, the persistent 0.7% net interest margin and rising efficiency ratio of 49.0% suggest limited near-term upside for core profitability.

FRME Growth Metrics

First Merchants Corporation (FRME) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years14.07%
5 Years13.46%
3 Years13.78%
TTM-

Profit CAGR

10 Years13.2%
5 Years8.75%
3 Years0.58%
TTM-4.78%

EPS CAGR

10 Years8.48%
5 Years7.21%
3 Years0.61%
TTM-4.21%

Return on Capital

10 Years7.87%
5 Years7.29%
3 Years6.02%
Last Year3.54%

FRME Recent Earnings

First Merchants Corporation (FRME) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 8/12 qtrs (67%)●Beat Revenue 2/12 qtrs (17%)
Q2 2026Latest
Apr 22, 2026
Metric
Actual
Est
EPS
$1.03+7.3%
$0.96
Rev
$193M+2.6%
$188M
Q1 2026
Jan 26, 2026
Metric
Actual
Est
EPS
$0.98+2.1%
$0.96
Rev
$178M+3.0%
$173M
Q4 2025
Oct 22, 2025
Metric
Actual
Est
EPS
$0.99+2.9%
$0.96
Rev
$166M-3.7%
$172M
Q3 2025
Jul 23, 2025
Metric
Actual
Est
EPS
$0.98+4.3%
$0.94
Rev
$164M-4.9%
$173M
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestApr 22, 2026
$1.03vs $0.96+7.3%
$193Mvs $188M+2.6%
Q1 2026Jan 26, 2026
$0.98vs $0.96+2.1%
$178Mvs $173M+3.0%
Q4 2025Oct 22, 2025
$0.99vs $0.96+2.9%
$166Mvs $172M-3.7%
Q3 2025Jul 23, 2025
$0.98vs $0.94+4.3%
$164Mvs $173M-4.9%
Based on last 12 quarters of dataView full earnings history →

Latest FRME News

Recent stock market news and headlines for First Merchants Corporation (FRME)

GlobeNewsWire·Jun 25, 2026
First Merchants Bank and NCRC Announce New $2 Billion Community Benefits Agreement to Expand Impact Across the Midwest

MUNCIE, Ind., June 25, 2026 (GLOBE NEWSWIRE) -- First Merchants Bank and the National Community Reinvestment Coalition (NCRC) announced a new $2.02 billion Community Benefits Agreement (CBA), reinforcing the bank's long-standing commitment to advancing financial wellness of the communities it serves.

Zacks Investment Research·Jun 24, 2026
First Merchants (FRME) Could Be a Great Choice

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does First Merchants (FRME) have what it takes?

The Motley Fool·Jun 18, 2026
First Merchants Stock Up 15%: Why This $835,000 Insider Sale Doesn't Seem Like a Red Flag

An FRME director sold 20,000 shares over June 11 and June 12, 2026, for a transaction value of about $835,000 at an average price of around $41.75 per share. This sale represented 6% of Myers's direct common stock holdings.

Peers Comparison

Key metrics vs top competitors for First Merchants Corporation (FRME)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
FRME logoFRMEFirst Merchants CorporationCurrent
$42.84$2.7B11.04-0.32%21.52%9.47%3.35%
WTFC logoWTFCWintrust Financial Corporation
$161.45$10.89B13.976.66%20.11%11.93%—
IBCP logoIBCPIndependent Bank Corporation
$35.76$736.88M10.94-0.3%22.54%14.15%—
FFIN logoFFINFirst Financial Bankshares, Inc.
$34.67$4.97B19.5911.71%31.14%14.2%—
MBWM logoMBWMMercantile Bank Corporation
$57.41$991.72M10.512.74%24.23%13.36%—
NBTB logoNBTBNBT Bancorp Inc.
$49.63$2.58B14.9010.36%19.66%9.83%—

Compare FRME vs Peers

First Merchants Corporation (FRME) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs WTFC

Most directly comparable listed peer for FRME.

Scale Benchmark

vs V

Larger-name benchmark to compare FRME against a more recognizable public peer.

Peer Set

Compare Top 5

vs WTFC, IBCP, FFIN, MBWM

FRME SEC Filings & Documents

First Merchants Corporation (FRME) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

May 20, 2026·SEC

Material company update

May 19, 2026·SEC

Material company update

May 19, 2026·SEC

10-K Annual Reports

2
FY 2026

Feb 25, 2026·SEC

FY 2025

Feb 24, 2025·SEC

10-Q Quarterly Reports

5
FY 2026

May 1, 2026·SEC

FY 2025

Oct 30, 2025·SEC

FY 2025

Jul 31, 2025·SEC

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FRME Frequently Asked Questions

First Merchants Corporation (FRME) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
How fast is First Merchants Corporation growing?

First Merchants Corporation (FRME) saw revenue decline by 0.3% over the past year.

Is FRME profitable?

Yes, First Merchants Corporation (FRME) is profitable, generating $198.8M in net income for fiscal year 2025 (21.5% net margin).

Dividend & Returns
Does FRME pay dividends?

Yes, First Merchants Corporation (FRME) pays a dividend with a yield of 3.35%. This makes it attractive for income-focused investors.

What is FRME's return on equity?

First Merchants Corporation (FRME) has a return on equity (ROE) of 9.5%. This is below average, suggesting room for improvement.

Industry Metrics
What is First Merchants Corporation's net interest margin?

First Merchants Corporation (FRME) has a net interest margin (NIM) of 2.8%. NIM has been under pressure due to interest rate environment.

What is First Merchants Corporation's efficiency ratio?

First Merchants Corporation (FRME) has an efficiency ratio of 36.3%. This is excellent, indicating strong cost control.

What if you invested $1,000 in FRME back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →