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Upturn AI SWOT - About
FRME 
First Merchants Corporation (FRME)
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Upturn Advisory Summary
04/01/2025: 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.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -17.81% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.35B USD | Price to earnings Ratio 11.79 | 1Y Target Price 51 |
Price to earnings Ratio 11.79 | 1Y Target Price 51 | ||
Volume (30-day avg) 307859 | Beta 1.06 | 52 Weeks Range 29.77 - 45.38 | Updated Date 04/1/2025 |
52 Weeks Range 29.77 - 45.38 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 3.46% | Basic EPS (TTM) 3.41 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 32.96% | Operating Margin (TTM) 47.63% |
Management Effectiveness
Return on Assets (TTM) 1.1% | Return on Equity (TTM) 8.85% |
Valuation
Trailing PE 11.79 | Forward PE 11.07 | Enterprise Value 3187276288 | Price to Sales(TTM) 3.85 |
Enterprise Value 3187276288 | Price to Sales(TTM) 3.85 | ||
Enterprise Value to Revenue 5.28 | Enterprise Value to EBITDA - | Shares Outstanding 58535200 | Shares Floating 57636143 |
Shares Outstanding 58535200 | Shares Floating 57636143 | ||
Percent Insiders 1.56 | Percent Institutions 77.26 |
Analyst Ratings
Rating 3.83 | Target Price 45.5 | Buy 3 | Strong Buy 1 |
Buy 3 | Strong Buy 1 | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
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 strategic acquisitions and organic expansion, evolving into a multi-bank holding company.
Core Business Areas
- Commercial Banking: Offers commercial lending, treasury management, and deposit services to businesses of all sizes.
- Retail Banking: Provides consumer loans, mortgages, deposit accounts, and wealth management services to individuals and families.
- Wealth Management: Provides trust, investment management, and financial planning services.
Leadership and Structure
The leadership team includes the CEO, CFO, and other senior executives. The organizational structure is based on regional banking divisions and functional departments.
Top Products and Market Share
Key Offerings
- Commercial Loans: Loans to businesses for various purposes, including working capital, equipment financing, and real estate acquisition. Market share data not publicly available. Competitors include larger national banks and regional banks.
- Mortgages: Residential mortgage loans for home purchases and refinances. Market share data not publicly available. Competitors include mortgage lenders, credit unions, and other banks.
- Deposit Accounts: Checking, savings, and money market accounts for consumers and businesses. Market share data not publicly available. Competitors include all banks and credit unions.
Market Dynamics
Industry Overview
The banking industry is undergoing rapid technological change, increased regulatory scrutiny, and consolidation. Interest rates and economic conditions significantly impact profitability.
Positioning
First Merchants Corporation is a regional bank focused on serving communities in Indiana, Illinois, Michigan, and Ohio. Its competitive advantages include local market expertise, customer service, and a strong balance sheet.
Total Addressable Market (TAM)
The total addressable market for banking services in the Midwest is substantial. First Merchants Corporation is positioned to capture a portion of this market through organic growth and acquisitions.
Upturn SWOT Analysis
Strengths
- Strong regional presence
- Diversified revenue streams
- Experienced management team
- Solid financial performance
Weaknesses
- Limited geographic footprint compared to national banks
- Reliance on regional economy
- Exposure to interest rate risk
Opportunities
- Acquisitions of smaller banks
- Expansion into new markets
- Increased digital banking adoption
- Growth in wealth management services
Threats
- Increased competition from national banks and fintech companies
- Economic downturn
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- JPM
- WFC
- USB
- KEY
Competitive Landscape
First Merchants Corporation competes with larger national banks and smaller regional banks. Its competitive advantages include local market expertise and customer service. Disadvantages include its smaller size and limited geographic footprint.
Major Acquisitions
Michigan City Financial Corporation
- Year: 2018
- Acquisition Price (USD millions): 112.9
- Strategic Rationale: Expanded First Merchants' presence into Northwest Indiana.
Independent Alliance
- Year: 2024
- Acquisition Price (USD millions): 105
- Strategic Rationale: Expanded First Merchants' insurance offerings
Growth Trajectory and Initiatives
Historical Growth: First Merchants Corporation has grown through a combination of organic growth and acquisitions.
Future Projections: Analysts expect First Merchants Corporation to continue to grow its earnings per share (EPS) in the coming years, driven by loan growth, fee income, and expense management.
Recent Initiatives: Recent strategic initiatives include investments in digital banking, expansion into new markets, and acquisitions of smaller banks.
Summary
First Merchants Corporation is a strong regional bank with a solid track record of financial performance. It benefits from a diversified revenue base, an experienced management team, and a strong presence in its core markets. However, it faces competition from larger banks and fintech companies and is exposed to economic risks. The company needs to look out for economic downturns that would impact its revenue and also keep up with the digital transformation of its product offerings.
Similar Companies
- JPM
- WFC
- USB
- KEY
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Investor presentations
- Analyst reports
- Industry publications
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market share data is based on available estimates and may not be precise. Financial data is subject to change. Past performance is not indicative of future results. Do your own research before making any investment decisions.
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 | ||
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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