Recent News
On February 1, 2026 First Merchants completed its merger with First Savings Financial Group, expanding deposit and loan footprints in southern Indiana; the companies expect integration during Q2 2026. On January 15, 2026 the Federal Reserve Bank of Chicago issued a non-objection clearing the last major regulatory hurdle. The board approved a quarterly cash dividend of $0.36 per share on February 9, 2026.
Technical Analysis
Directional indicators: ADX at 23.09 signals an emerging trend while DI- at 27.02 increases and DI+ at 18.52 decreases, indicating directional pressure favors sellers; that pressure counters the valuation case and raises the chance of further near-term downside unless buyers reassert momentum.
MACD: MACD sits at -0.50 and trends downward below its signal line (signal 0.02), indicating continuing bearish momentum; a MACD cross back above the signal line would mark a shift toward bullish momentum.
MRO: MRO equals -22.86 and trends lower, indicating price below the oscillator’s target and therefore technical potential for upward mean reversion; that implies a technical catalyst for a bounce even while directional momentum remains negative.
RSI: RSI at 49.43 and decreasing shows market demand near equilibrium but leaning lower; combined with falling short-term EMAs (12-day EMA decreasing) price retains a mildly bearish near-term profile relative to moving averages and Ichimoku baselines around $38–$39.
Price & volatility context: Close of $37.39 trades below the 20-, 50-, and 200-day averages and beneath the super-trend upper band at $39.32, reinforcing resistance in the $39–$40 area. Volume at 609,373 exceeds 10-, 50-, and 200-day averages, indicating elevated participation during this technical consolidation.
Fundamental Analysis
Earnings and cash flow: Reported EPS of $0.98 versus an estimate of $0.95 produced a 3.16% EPS surprise; the report date ended 2025-12-31 with the filing dated 2026-01-26. Operating cash flow and free cash flow both register at $80,712,000 and $80,712,000 respectively, with free cash flow yield of 3.74% (free cash flow yield QoQ down 5.98% but YoY up 28.405%), supporting the company’s ability to fund dividends and buybacks.
Profitability and returns: Return on assets equals 0.302% and return on equity equals 2.337%, both lower than typical large-bank benchmarks but roughly in line with regional peer return-on-assets averages; QoQ and YoY returns declined (ROA QoQ -0.658%, ROA YoY -13.96%; ROE QoQ -1.724%, ROE YoY -17.216%), reflecting margin pressure despite revenue growth.
Growth and revenue: Total revenue of $172,170,000 and YoY revenue growth of 50.338% contrast with flat quarter-over-quarter revenue; that strong annual revenue growth drives part of the valuation uplift while short-term QoQ stagnation signals integration- and seasonality-driven variability.
Capital structure and liquidity: Total assets $19,025,101,000, cash $280,458,000, total equity $2,441,542,000 and debt-to-equity 0.35067 (debt-to-equity QoQ -2.233%, YoY -12.73%) indicate modest leverage and improving capital mix. Book value per share stands at $42.87; tangible equity metrics remain supportive of the current dividend and capital return capacity.
Market multiples and relative measures: P/E at 38.63 sits slightly above the industry peer median but below the industry peer mean; forward P/E at 32.84 shows projected multiple compression. Price-to-book equals 0.88, below the industry peer mean and median, suggesting a discount to peers on a book basis. PEG ratios display negative values due to reported near-term EPS dynamics; WMDST values the stock as under-valued.
Dividend profile: Quarterly cash dividend $0.36 yields approximately 0.99% with a dividend payout ratio of 37.31% and dividend coverage of 268.05%, indicating sustainable coverage from current earnings and cash flow.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-01-26 |
| NEXT REPORT DATE: | 2026-04-27 |
| CASH FLOW | Begin Period Cash Flow | $ 88.1 M |
| Operating Cash Flow | $ 80.7 M | |
| Capital Expenditures | — | |
| Change In Working Capital | $ -6.13 M | |
| Dividends Paid | $ -21.29 M | |
| Cash Flow Delta | $ -3.92 M | |
| End Period Cash Flow | $ 84.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 172.2 M | |
| Forward Revenue | $ 48.8 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 4.2 M | |
| Depreciation and Amortization | $ 5.7 M | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | $ 237.4 M | |
| Interest Expense | $ 98.4 M | |
| Net Interest Income | $ 139.1 M | |
| Income Before Tax | $ 65.5 M | |
| Tax Provision | $ 8.4 M | |
| Tax Rate | 12.875 % | |
| Net Income | $ 57.1 M | |
| Net Income From Continuing Operations | $ 57.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.95 | |
| EPS Actual | $ 0.98 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 3.158 % | |
| Forward EPS | $ 1.14 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 19.0 B | |
| Intangible Assets | $ 725.8 M | |
| Net Tangible Assets | $ 1.7 B | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | $ 280.5 M | |
| Net Receivables | $ 93.4 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 18.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | $ 575.7 M | |
| Total Debt | $ 856.2 M | |
| Total Liabilities | $ 16.6 B | |
| EQUITY | ||
| Total Equity | $ 2.4 B | |
| Retained Earnings | $ 1.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 42.87 | |
| Shares Outstanding | 56.952 M | |
| Revenue Per-Share | $ 3.02 | |
| VALUATION | Market Capitalization | $ 2.2 B |
| Enterprise Value | $ 3.0 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 17.496 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 7.792 | |
| Asset To Liability | 1.149 | |
| Debt To Capital | 0.26 | |
| Debt To Assets | 0.045 | |
| Debt To Assets QoQ | -1.142 % | |
| Debt To Assets YoY | -10.054 % | |
| Debt To Assets IPRWA | high: 0.094 median: 0.052 mean: 0.048 FRME: 0.045 low: -0.0 |
|
| Debt To Equity | 0.351 | |
| Debt To Equity QoQ | -2.233 % | |
| Debt To Equity YoY | -12.73 % | |
| Debt To Equity IPRWA | high: 1.415 mean: 0.47 median: 0.466 FRME: 0.351 low: -0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.883 | |
| Price To Book QoQ | -4.138 % | |
| Price To Book YoY | -13.065 % | |
| Price To Book IPRWA | high: 2.361 mean: 1.299 median: 1.218 FRME: 0.883 low: 0.013 |
|
| Price To Earnings (P/E) | 38.631 | |
| Price To Earnings QoQ | -0.54 % | |
| Price To Earnings YoY | -26.503 % | |
| Price To Earnings IPRWA | high: 73.773 mean: 44.37 FRME: 38.631 median: 38.44 low: 30.108 |
|
| PE/G Ratio | -38.249 | |
| Price To Sales (P/S) | 12.523 | |
| Price To Sales QoQ | -5.391 % | |
| Price To Sales YoY | -15.033 % | |
| Price To Sales IPRWA | high: 28.081 mean: 13.824 median: 12.952 FRME: 12.523 low: 0.123 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 32.838 | |
| Forward PE/G | -32.513 | |
| Forward P/S | 44.19 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.009 | |
| Asset Turnover Ratio QoQ | 2.477 % | |
| Asset Turnover Ratio YoY | 6.184 % | |
| Asset Turnover Ratio IPRWA | high: 0.015 mean: 0.01 median: 0.01 FRME: 0.009 low: 0.006 |
|
| Receivables Turnover | 1.887 | |
| Receivables Turnover Ratio QoQ | 3.562 % | |
| Receivables Turnover Ratio YoY | 10.418 % | |
| Receivables Turnover Ratio IPRWA | high: 4.133 mean: 2.638 median: 2.491 FRME: 1.887 low: 0.968 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 48.356 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.3 B | |
| Net Invested Capital | $ 3.3 B | |
| Invested Capital | $ 3.3 B | |
| Net Tangible Assets | $ 1.7 B | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 9.71 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.68 | |
| Dividend Payout Ratio | 0.373 | |
| Dividend Rate | $ 0.37 | |
| Dividend Yield | 0.01 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.135 % | |
| Revenue Growth | 1.111 % | |
| Revenue Growth QoQ | 0.0 % | |
| Revenue Growth YoY | 50.338 % | |
| Revenue Growth IPRWA | high: 23.369 % mean: 3.469 % median: 1.779 % FRME: 1.111 % low: -10.947 % |
|
| Earnings Growth | -1.01 % | |
| Earnings Growth QoQ | -199.02 % | |
| Earnings Growth YoY | -94.95 % | |
| Earnings Growth IPRWA | high: 44.444 % mean: 3.014 % FRME: -1.01 % median: -3.03 % low: -25.0 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 80.7 M | |
| Free Cash Flow Yield | 3.743 % | |
| Free Cash Flow Yield QoQ | -5.978 % | |
| Free Cash Flow Yield YoY | 28.405 % | |
| Free Cash Flow Yield IPRWA | high: 6.244 % FRME: 3.743 % median: 2.306 % mean: 2.186 % low: -1.861 % |
|
| Free Cash Growth | -7.82 % | |
| Free Cash Growth QoQ | -112.388 % | |
| Free Cash Growth YoY | -35.585 % | |
| Free Cash Growth IPRWA | high: 176.765 % mean: 0.132 % FRME: -7.82 % median: -9.484 % low: -234.402 % |
|
| Free Cash To Net Income | 1.414 | |
| Cash Flow Margin | 33.974 % | |
| Cash Flow To Earnings | 1.025 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.05 | |
| Return On Assets (ROA) | 0.302 % | |
| Return On Assets QoQ | -0.658 % | |
| Return On Assets YoY | -13.96 % | |
| Return On Assets IPRWA | high: 0.645 % mean: 0.311 % median: 0.311 % FRME: 0.302 % low: 0.027 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.023 | |
| Return On Equity QoQ | -1.724 % | |
| Return On Equity YoY | -17.216 % | |
| Return On Equity IPRWA | high: 0.047 mean: 0.029 median: 0.028 FRME: 0.023 low: 0.003 |
|
| DuPont ROE | 2.363 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |