First Merchants Corporation(FRMEP)

$25.30—Stale · unknown old

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First Merchants Corporation(FRMEP)

NASDAQ • Last print unknown ago

$25.30—Stale · unknown old

Ask SA Chart Studio

FRMEP(FRMEP)

FRMEP

9/19/26

First Merchants (FRMEP)

Saturday

10:10 AM

ThesisRecent improvements in loan origination and credit quality metrics indicate a positive trend, enhancing investor confidence.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$1.1B	$806M	$847M
Rev. Growth	-0.3%	-23.3%	+5.1%
EPS	$3.90	$3.23	$4.48
EPS Growth	+14.0%	-17.1%	+38.5%
P/E (fwd)	6.5×	7.8×	5.6×

★ Analysts see FY2027 revenue reaching $847M — +5.1% growth in a single year.

What’s Driving the Stock

01Improved loan origination volumes in Q3 2026, up 15% YoY, indicating strong demand for commercial loans.
02Reduction in non-performing loans ratio to 0.8%, down from 1.2% last year, suggesting improved credit quality.
03Potential acquisition of a smaller regional bank could expand market share in Ohio, enhancing growth prospects.
04Increased focus on digital banking solutions could attract younger customers, driving future growth.
05Digital transformation in banking
06Focus on small business lending
07Changes in the Federal Funds Rate impacting net interest margins
08Loan growth in commercial and residential sectors

FY2025 Snapshot

Revenue: $1.1B
Rev. Growth: -0.3%
Gross Margin: 61.0%
Op. Margin: 24.7%
Net Margin: 21.5%
Net Income: $226M
NI Growth: +12.2%
EPS: $3.90
1Y Return: +6.1%

FRMEP Chart

My Notes

"Management noted, 'Our focus on local businesses is paying off, as we see strong demand for our lending products.'"
Moat: First Merchants' local market knowledge and established customer relationships provide a durable competitive advantage.
value - the stock trades at a low price-to-book ratio, appealing to value-focused investors.
Rising interest rates generally improve net interest margins for banks, enhancing profitability.
Watch on earnings: Federal Funds Rate, Loan growth rate, Net interest margin.

One Sentence Summary:

The bull case is simple: analysts see revenue climbing from $806M to $847M as improved loan origination volumes in q3 2026, up 15% yoy, indicating strong demand for commercial loans.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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Metric

FY2025

FY2026E

FY2027E

P/E (fwd)

6.5×

7.8×

5.6×

What’s Driving the Stock

01Improved loan origination volumes in Q3 2026, up 15% YoY, indicating strong demand for commercial loans.

02Reduction in non-performing loans ratio to 0.8%, down from 1.2% last year, suggesting improved credit quality.

03Potential acquisition of a smaller regional bank could expand market share in Ohio, enhancing growth prospects.

04Increased focus on digital banking solutions could attract younger customers, driving future growth.

05Digital transformation in banking

06Focus on small business lending

07Changes in the Federal Funds Rate impacting net interest margins

08Loan growth in commercial and residential sectors

My Notes

"Management noted, 'Our focus on local businesses is paying off, as we see strong demand for our lending products.'"

Moat: First Merchants' local market knowledge and established customer relationships provide a durable competitive advantage.

value - the stock trades at a low price-to-book ratio, appealing to value-focused investors.

Rising interest rates generally improve net interest margins for banks, enhancing profitability.

Watch on earnings: Federal Funds Rate, Loan growth rate, Net interest margin.