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Upturn AI SWOT - About
FRME 
First Merchants Corporation (FRME)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
10/31/2025: FRME (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
6 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $45.6
1 Year Target Price $45.6
| 2 | Strong Buy |
| 3 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -21.07% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/31/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.04B USD | Price to earnings Ratio 8.87 | 1Y Target Price 45.6 |
Price to earnings Ratio 8.87 | 1Y Target Price 45.6 | ||
Volume (30-day avg) 6 | Beta 1.06 | 52 Weeks Range 32.52 - 44.54 | Updated Date 10/31/2025 |
52 Weeks Range 32.52 - 44.54 | Updated Date 10/31/2025 | ||
Dividends yield (FY) 3.97% | Basic EPS (TTM) 4 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-10-30 | When After Market | Estimate 0.97 | Actual 0.99 |
Profitability
Profit Margin 35.91% | Operating Margin (TTM) 43.52% |
Management Effectiveness
Return on Assets (TTM) 1.26% | Return on Equity (TTM) 9.9% |
Valuation
Trailing PE 8.87 | Forward PE 11.07 | Enterprise Value 2975383808 | Price to Sales(TTM) 3.15 |
Enterprise Value 2975383808 | Price to Sales(TTM) 3.15 | ||
Enterprise Value to Revenue 4.95 | Enterprise Value to EBITDA - | Shares Outstanding 57192497 | Shares Floating 56211646 |
Shares Outstanding 57192497 | Shares Floating 56211646 | ||
Percent Insiders 1.66 | Percent Institutions 81.44 |
Upturn AI SWOT
First Merchants Corporation
Company Overview
History and Background
First Merchants Corporation was founded in 1893 in Muncie, Indiana. Initially named Merchants National Bank, it has grown through organic expansion and acquisitions to become a regional bank holding company.
Core Business Areas
- Commercial Banking: Provides a wide range of lending and deposit products and services to businesses, including commercial loans, lines of credit, treasury management, and international banking services.
- Retail Banking: Offers a full suite of retail banking products and services, including checking and savings accounts, mortgages, home equity loans, credit cards, and investment services.
- Wealth Management: Provides financial planning, investment management, trust, and estate services to individuals and families.
Leadership and Structure
Michael C. Rechin serves as the President and CEO. The company has a board of directors and operates through various divisions and subsidiaries focused on its core business areas.
Top Products and Market Share
Key Offerings
- Commercial Loans: Commercial loans are a significant revenue driver. Competitors include other regional and national banks such as Huntington Bancshares (HBAN) and Fifth Third Bancorp (FITB). Market share data for commercial loans is fragmented and difficult to pinpoint precisely but First Merchants compete aggressively with the larger competitors and regional banks.
- Mortgage Lending: Mortgages represent a substantial portion of First Merchants' loan portfolio. Competitors include national lenders like Rocket Mortgage and local credit unions. Information on exact market share is not publicly available but is a key product in First Merchants' suite.
- Digital and Mobile Banking: This includes online banking, mobile app services, and digital payment solutions. Competitors include BofA and JP Morgan Chase.
- Wealth Management Services: This segment manages assets for individuals and institutions. Major competitors include large firms such as Charles Schwab (SCHW) and Fidelity. Revenue from this business is significant and growing.
Market Dynamics
Industry Overview
The banking industry is currently navigating a period of rising interest rates, increased regulatory scrutiny, and technological disruption. Competition is fierce, and institutions are focused on improving efficiency and enhancing customer experience.
Positioning
First Merchants Corporation is positioned as a strong regional bank with a focus on community banking and relationship-based service. Its competitive advantages include its local market expertise and its strong capital base.
Total Addressable Market (TAM)
The TAM for banking services in the Midwest US is estimated to be in the hundreds of billions of dollars. First Merchants Corporation is positioned to capitalize on this TAM through its regional focus and diversified product offerings.
Upturn SWOT Analysis
Strengths
- Strong capital base
- Experienced management team
- Strong regional presence in the Midwest
- Diversified revenue streams
- High employee retention
Weaknesses
- Limited geographic reach compared to larger national banks
- Reliance on interest income, making it vulnerable to interest rate fluctuations
- Smaller marketing budget compared to national banks
Opportunities
- Further expansion through acquisitions
- Increased adoption of digital banking services
- Growth in wealth management business
- Increased commercial lending as the economy improves
Threats
- Increased competition from online lenders
- Rising interest rates impacting loan demand
- Regulatory changes
- Economic downturn affecting loan quality
Competitors and Market Share
Key Competitors
- HBAN
- FITB
- KEY
- CMA
Competitive Landscape
First Merchants competes with larger national and regional banks and local credit unions. Its advantage lies in its community focus and strong relationships. Disadvantages include lesser brand recognition and marketing budget compared to larger banks.
Major Acquisitions
LVB Corp.
- Year: 2022
- Acquisition Price (USD millions): 200
- Strategic Rationale: Expanded First Merchants' presence in the attractive Louisville, Kentucky market.
Growth Trajectory and Initiatives
Historical Growth: First Merchants has grown steadily through organic expansion and acquisitions.
Future Projections: Future growth projections are best obtained from analyst reports. Please check the latest ratings from the sell side investment banks and equity research firms.
Recent Initiatives: Recent initiatives may include acquisitions, branch expansions, and technology investments.
Summary
First Merchants Corporation is a strong regional bank with a focus on community banking. Its strengths include a diversified revenue stream, high employee retention and good regional footprint. It needs to look out for the growing risk in interest rates and the competitive market that larger banks have. However they can expand with more M&A deals with other regional banks.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company filings, Analyst reports, Financial news sources
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. Market share data are estimates and may vary. Real-time financial data is not included.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Merchants Corporation
Exchange NASDAQ | Headquaters Muncie, IN, United States | ||
IPO Launch date 1992-02-25 | CEO & Director Mr. Mark K. Hardwick CPA | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 2120 | Website https://www.firstmerchants.com |
Full time employees 2120 | Website https://www.firstmerchants.com | ||
First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides commercial and consumer banking services. The company offers a range of financial services, including checking, savings, and deposit products; debit and credit cards; mortgages, home equity lending, vehicle loans, and personal loans; and local commercial lending, asset-based lending solutions, agricultural lending, commercial real estate solutions, debt capital markets, practice finance, public finance, small business administration lending, and sponsor finance services. It also provides personal and commercial wealth management services, trust services, retirement planning, brokerage, investment management, private banking, fiduciary estate, and financial planning services. The company operates banking locations in Indiana, Ohio, and Michigan counties. It offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.
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