First Merchants
Market Cap
US$2.1b
Last Updated
2021/01/21 23:47 UTC
Data Sources
Company Financials +
Executive Summary
First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services. More Details
Rewards
Risk Analysis
No risks detected for FRME from our risk checks.
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: FRME's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-4.3%
FRME
-5.3%
US Banks
1.4%
US Market
1 Year Return
-2.8%
FRME
-8.4%
US Banks
22.6%
US Market
Return vs Industry: FRME exceeded the US Banks industry which returned -7.2% over the past year.
Return vs Market: FRME underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| FRME | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.3% | -5.3% | 1.4% |
| 30 Day | 11.8% | 9.9% | 4.9% |
| 90 Day | 46.1% | 29.9% | 14.6% |
| 1 Year | 0.5%-2.8% | -5.0%-8.4% | 25.4%22.6% |
| 3 Year | -1.1%-8.7% | -2.1%-10.5% | 46.8%37.0% |
| 5 Year | 104.3%81.7% | 82.1%59.0% | 132.0%106.1% |
Long-Term 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
3 days ago | Simply Wall St
How Does First Merchants Corporation (NASDAQ:FRME) Fare As A Dividend Stock?4 weeks ago | Simply Wall St
Did First Merchants Corporation (NASDAQ:FRME) Insiders Buy Up More Shares?1 month ago | Simply Wall St
Why You Might Be Interested In First Merchants Corporation (NASDAQ:FRME) For Its Upcoming DividendValuation
Is First Merchants undervalued compared to its fair value and its price relative to the market?
2.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FRME ($39.62) is trading below our estimate of fair value ($40.47)
Significantly Below Fair Value: FRME is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FRME is poor value based on its PE Ratio (14.3x) compared to the US Banks industry average (12.3x).
PE vs Market: FRME is good value based on its PE Ratio (14.3x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: FRME is poor value based on its PEG Ratio (9.4x)
Price to Book Ratio
PB vs Industry: FRME is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1x).
Next Steps
Future Growth
How is First Merchants forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
1.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FRME's forecast earnings growth (1.5% per year) is below the savings rate (2%).
Earnings vs Market: FRME's earnings (1.5% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: FRME's earnings are forecast to grow, but not significantly.
Revenue vs Market: FRME's revenue (2.1% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: FRME's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FRME's Return on Equity is forecast to be low in 3 years time (7.5%).
Next Steps
Past Performance
How has First Merchants performed over the past 5 years?
20.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FRME has high quality earnings.
Growing Profit Margin: FRME's current net profit margins (35.2%) are lower than last year (37.3%).
Past Earnings Growth Analysis
Earnings Trend: FRME's earnings have grown significantly by 20.6% 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 (-4.5%) over the past year, making it difficult to compare to the Banks industry average (-4.3%).
Return on Equity
High ROE: FRME's Return on Equity (8.3%) is considered low.
Next Steps
Financial Health
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
Balance Sheet
Financial Institutions Analysis
Asset Level: FRME's Assets to Equity ratio (7.5x) is low.
Allowance for Bad Loans: FRME has a sufficient allowance for bad loans (213%).
Low Risk Liabilities: 92% 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 (66%).
Low Risk Deposits: FRME's Loans to Deposits ratio (84%) is appropriate.
Level of Bad Loans: FRME has an appropriate level of bad loans (0.6%).
Next Steps
Dividend
What is First Merchants's current dividend yield, its reliability and sustainability?
2.62%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FRME's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: FRME's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.86%).
Stability and Growth of Payments
Stable Dividend: FRME's dividends per share have been stable 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 (37.4%), FRME's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FRME's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.1yrs
Average management tenure
CEO
Mark Hardwick (49 yo)
no data
Tenure
US$993,691
Compensation
Mr. Mark K. Hardwick, C.P.A., serves as Chief Executive Officer at First Merchants Corporation since January 01, 2021. He served as an Executive Vice President of First Merchants Corporation since December...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD993.69K) is below average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | no data | US$993.69k | 0.17% $ 3.8m | |
| President | no data | US$909.66k | 0.13% $ 2.8m | |
| Senior VP & Chief Information Officer | 6.67yrs | US$523.96k | 0.038% $ 822.9k | |
| Advisor & Director | 15.08yrs | US$1.70m | 0.22% $ 4.7m | |
| Executive VP & Chief Credit Officer | 11.58yrs | US$709.32k | 0.076% $ 1.6m | |
| Executive VP | no data | no data | 0.021% $ 454.2k | |
| VP & Director of Corporate Administration | no data | no data | no data | |
| Secretary & Legal Counsel | 3yrs | no data | no data | |
| VP & Director of Marketing | 15.92yrs | no data | no data | |
| Senior Vice President & Director of Human Resources | 4.25yrs | no data | 0.015% $ 328.9k | |
| Senior VP & Chief Risk Officer | 13.58yrs | US$165.10k | 0.025% $ 533.8k | |
| Corporate Controller & First VP | no data | no data | no data |
9.1yrs
Average Tenure
54yo
Average Age
Experienced Management: FRME's management team is seasoned and experienced (9.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Advisor & Director | 15.08yrs | US$1.70m | 0.22% $ 4.7m | |
| Independent Director | 17yrs | US$113.49k | 0.067% $ 1.4m | |
| Independent Director | 13.25yrs | US$105.09k | 0.054% $ 1.2m | |
| Independent Chairman of the Board | 13.75yrs | US$149.62k | 0.090% $ 1.9m | |
| Director | 1.17yrs | no data | 0.067% $ 1.4m | |
| Independent Director | 9.67yrs | US$113.09k | 0.078% $ 1.7m | |
| Independent Director | 11.67yrs | US$103.42k | 0.087% $ 1.9m | |
| Independent Director | 7.17yrs | US$108.76k | 0.025% $ 548.2k | |
| Independent Director | 8.58yrs | US$113.19k | 0.027% $ 588.8k | |
| Independent Director | 3.17yrs | US$96.01k | 0.066% $ 1.4m | |
| Independent Director | 3.92yrs | US$96.99k | 0.0091% $ 196.5k | |
| Independent Director | 1.42yrs | US$53.60k | 0.0061% $ 130.5k |
9.1yrs
Average Tenure
65yo
Average Age
Experienced Board: FRME's board of directors are considered experienced (9.1 years average tenure).
Ownership
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
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
First Merchants Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: First Merchants Corporation
- Ticker: FRME
- Exchange: NasdaqGS
- Founded: 1893
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$2.150b
- Shares outstanding: 54.26m
- Website: https://www.firstmerchants.com
Number of Employees
Location
- First Merchants Corporation
- 200 East Jackson Street
- Muncie
- Indiana
- 47305-2814
- United States
Listings
| 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 |
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:47 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.