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Upturn AI SWOT - About
FRME 
First Merchants Corporation (FRME)
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Upturn Advisory Summary
08/28/2025: FRME (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 $46.83
1 Year Target Price $46.83
| 2 | Strong Buy |
| 3 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -16.4% | Avg. Invested days 28 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.40B USD | Price to earnings Ratio 10.78 | 1Y Target Price 46.83 |
Price to earnings Ratio 10.78 | 1Y Target Price 46.83 | ||
Volume (30-day avg) 6 | Beta 1.08 | 52 Weeks Range 32.80 - 44.93 | Updated Date 08/29/2025 |
52 Weeks Range 32.80 - 44.93 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 3.39% | Basic EPS (TTM) 3.85 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 35.34% | Operating Margin (TTM) 44.23% |
Management Effectiveness
Return on Assets (TTM) 1.22% | Return on Equity (TTM) 9.9% |
Valuation
Trailing PE 10.78 | Forward PE 11.07 | Enterprise Value 3283104000 | Price to Sales(TTM) 3.75 |
Enterprise Value 3283104000 | Price to Sales(TTM) 3.75 | ||
Enterprise Value to Revenue 5.31 | Enterprise Value to EBITDA - | Shares Outstanding 57732300 | Shares Floating 56750312 |
Shares Outstanding 57732300 | Shares Floating 56750312 | ||
Percent Insiders 1.63 | Percent Institutions 80.04 |
Upturn AI SWOT
First Merchants Corporation
Company Overview
History and Background
First Merchants Corporation was founded in 1893 in Muncie, Indiana. Initially known as Merchants National Bank, it has grown through organic expansion and strategic acquisitions to become a leading financial services provider in the Midwest.
Core Business Areas
- Commercial Banking: Provides a range of lending and deposit services to businesses of all sizes, including commercial real estate, equipment financing, and treasury management.
- Retail Banking: Offers a full suite of consumer banking products and services, including checking and savings accounts, mortgages, and personal loans.
- Wealth Management: Provides investment management, financial planning, trust, and estate services to individuals, families, and businesses.
Leadership and Structure
Michael C. Rechin serves as the President and CEO. The organizational structure includes executive leadership overseeing various business segments, with a board of directors providing governance.
Top Products and Market Share
Key Offerings
- Commercial Loans: Offer commercial loans to medium-sized and larger businesses. Market share data for specific loan products is generally not broken down publicly by First Merchants. Competitors include larger regional banks and national lenders.
- Mortgage Lending: Offer mortgage loans to individuals. Market share data for specific mortgage products is generally not broken down publicly by First Merchants. Competitors include national mortgage lenders and credit unions.
- Wealth Management Services: Offer financial planning and wealth management services for high net worth individuals. Market share data for wealth management is generally not broken down publicly by First Merchants. Competitors include regional and national wealth management firms.
Market Dynamics
Industry Overview
The banking industry is currently facing rising interest rates, increased competition from fintech companies, and evolving regulatory requirements.
Positioning
First Merchants is positioned as a strong regional bank focusing on community relationships and providing a comprehensive suite of financial services. Their competitive advantage lies in their local market knowledge and customer service.
Total Addressable Market (TAM)
The total addressable market for banking services in First Merchants' geographic footprint is estimated to be in the billions of dollars. First Merchants is positioned to capture a portion of this market through its strong local presence and diverse product offerings.
Upturn SWOT Analysis
Strengths
- Strong capital base
- Established presence in key Midwest markets
- Diversified revenue streams
- Experienced management team
- Strong customer relationships
Weaknesses
- Limited geographic reach compared to national banks
- Exposure to regional economic fluctuations
- Reliance on traditional banking model
- Smaller marketing budget compared to larger banks
Opportunities
- Expansion into new markets through acquisitions
- Increased adoption of digital banking solutions
- Growing demand for wealth management services
- Strategic partnerships with fintech companies
Threats
- Rising interest rates
- Increased competition from online lenders and fintech companies
- Regulatory changes
- Economic downturn
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- JPM
- WFC
- KEY
Competitive Landscape
First Merchants competes with larger national banks and smaller regional players. Its strength lies in its community focus and local expertise, while its disadvantage is its limited geographic reach.
Major Acquisitions
Level One Bancorp
- Year: 2022
- Acquisition Price (USD millions): 325
- Strategic Rationale: Expansion into the attractive Michigan market, increasing scale and market share.
Growth Trajectory and Initiatives
Historical Growth: First Merchants has demonstrated steady growth through organic expansion and acquisitions in the Midwest region.
Future Projections: Analyst estimates suggest continued growth driven by strategic initiatives and favorable economic conditions in its key markets.
Recent Initiatives: Recent initiatives include investments in digital banking technology and expansion of wealth management services.
Summary
First Merchants is a stable regional bank with a solid track record. Its focus on community banking and strategic acquisitions have contributed to steady growth. Challenges include competition from larger banks and the need to adapt to evolving digital landscape, but strong relationships and capital base positions it well. First Merchants should monitor rising interest rates and cybersecurity threats to avoid any negative impacts.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Earnings Call Transcripts
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is based on publicly available information and general knowledge. It is not financial advice and should not be used as the sole basis for investment decisions. Financial data is hypothetical and for illustrative purposes only due to the lack of real-time data access.
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 - | ||
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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