First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services.
Flawless balance sheet and undervalued.
Share Price & News
How has First Merchants's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FRME's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: FRME matched the US Banks industry which returned -28.7% over the past year.
Return vs Market: FRME underperformed the US Market which returned 3.7% over the past year.
Price Volatility Vs. Market
How volatile is First Merchants's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall StHave Insiders Sold First Merchants Corporation (NASDAQ:FRME) Shares Recently?
4 days ago | Simply Wall StHow Much Of First Merchants Corporation (NASDAQ:FRME) Do Institutions Own?
2 weeks ago | Simply Wall StOur Take On First Merchants Corporation's (NASDAQ:FRME) CEO Salary
Is First Merchants undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FRME ($24.97) is trading below our estimate of fair value ($32.21)
Significantly Below Fair Value: FRME is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FRME is good value based on its PE Ratio (8.2x) compared to the Banks industry average (9.3x).
PE vs Market: FRME is good value based on its PE Ratio (8.2x) compared to the US market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: FRME's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: FRME is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).
How is First Merchants forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FRME's earnings are forecast to decline over the next 3 years (-15.5% per year).
Earnings vs Market: FRME's earnings are forecast to decline over the next 3 years (-15.5% per year).
High Growth Earnings: FRME's earnings are forecast to decline over the next 3 years.
Revenue vs Market: FRME's revenue is expected to decline over the next 3 years (-0.3% per year).
High Growth Revenue: FRME's revenue is forecast to decline over the next 3 years (-0.3% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if FRME's Return on Equity is forecast to be high in 3 years time
How has First Merchants performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FRME has high quality earnings.
Growing Profit Margin: FRME's current net profit margins (36.2%) are lower than last year (39%).
Past Earnings Growth Analysis
Earnings Trend: FRME's earnings have grown significantly by 23% per year over the past 5 years.
Accelerating Growth: FRME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FRME had negative earnings growth (-0.9%) over the past year, making it difficult to compare to the Banks industry average (2.9%).
Return on Equity
High ROE: FRME's Return on Equity (9%) is considered low.
How is First Merchants's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: FRME's Assets to Equity ratio (7.1x) is low.
Allowance for Bad Loans: FRME has a sufficient allowance for bad loans (610%).
Low Risk Liabilities: 90% of FRME's liabilities are made up of primarily low risk sources of funding.
Loan Level: FRME has an appropriate level of Loans to Assets ratio (67%).
Low Risk Deposits: FRME's Loans to Deposits ratio (86%) is appropriate.
Level of Bad Loans: FRME has an appropriate level of bad loans (0.2%).
What is First Merchants's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: FRME's dividend (4.16%) is higher than the bottom 25% of dividend payers in the US market (1.75%).
High Dividend: FRME's dividend (4.16%) is low compared to the top 25% of dividend payers in the US market (4.73%).
Stability and Growth of Payments
Stable Dividend: FRME's dividend payments have been volatile in the past 10 years.
Growing Dividend: FRME's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.3%), FRME's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Rechin (60yo)
Mr. Michael C. Rechin, also known as Mike has been the Chief Executive Officer and President of First Merchants Corporation since April 24, 2007. Mr. Rechin serves as the Chief Executive Officer of First M ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD1.70M) is below average for companies of similar size in the US market ($USD4.91M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
|Executive VP||18.08yrs||US$993.69k||0.15% $2.1m|
|Senior VP & Chief Information Officer||6yrs||US$523.96k||0.033% $441.9k|
|Executive VP & Chief Banking Officer||13.42yrs||US$909.66k||0.12% $1.6m|
|Executive VP & Chief Credit Officer||10.92yrs||US$709.32k||0.070% $940.2k|
|VP & Director of Corporate Administration||no data||no data||no data|
|Secretary & Legal Counsel||2.33yrs||no data||no data|
|VP & Director of Marketing||15.25yrs||no data||no data|
|Senior Vice President & Director of Human Resources||3.58yrs||no data||0.012% $160.3k|
|Senior VP & Chief Risk Officer||12.92yrs||US$165.10k||0.024% $323.4k|
Experienced Management: FRME's management team is seasoned and experienced (12.9 years average tenure).
|Independent Director||16.33yrs||US$113.49k||0.062% $837.5k|
|Independent Director||12.58yrs||US$105.09k||0.051% $695.1k|
|Independent Chairman of the Board||13.08yrs||US$149.62k||0.086% $1.2m|
|Independent Director||9yrs||US$113.09k||0.075% $1.0m|
|Independent Director||11yrs||US$103.42k||0.082% $1.1m|
|Independent Director||6.5yrs||US$108.76k||0.022% $295.3k|
|Independent Director||7.92yrs||US$113.19k||0.024% $325.5k|
|Independent Director||2.5yrs||US$96.01k||0.045% $610.5k|
|Independent Director||3.25yrs||US$96.99k||0.0063% $84.5k|
Experienced Board: FRME's board of directors are seasoned and experienced ( 10 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FRME insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9%.
First Merchants Corporation's company bio, employee growth, exchange listings and data sources
- Name: First Merchants Corporation
- Ticker: FRME
- Exchange: NasdaqGS
- Founded: 1893
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$1.351b
- Shares outstanding: 54.12m
- Website: https://www.firstmerchants.com
Number of Employees
- First Merchants Corporation
- 200 East Jackson Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FRME||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jun 1989|
|FM5||BST (Boerse-Stuttgart)||Yes||Common Stock||DE||EUR||Jun 1989|
First 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. 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 128 banking locations in thirty Indiana, two Illinois, two Ohio, and two Michigan counties. The company offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/25 23:43|
|End of Day Share Price||2020/05/22 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.