From Yahoo Finance: 2025-05-21 13:04:00

First Merchants Corporation (FRME) has been the subject of a bullish thesis by Serhio MaxDividends on Substack. FRME shares were trading at $39.18 on May 20th, with trailing and forward P/E ratios of 11.04 and 11.07 respectively, according to Yahoo Finance. The company recently raised its quarterly dividend by 2.9% to $0.36 per share, offering a forward yield of 3.67%. In Q1 2025, FRME reported net income of $54.9 million, or $0.94 EPS, up from $0.85 the previous year, supported by a growing loan book that expanded by $154.9 million (4.8% annualized) and total assets reaching $18.4 billion. Despite a 1.6% decrease in deposits due to the sale of five Illinois branches, the bank reported net interest income of $130.3 million with a net interest margin of 3.22%. Capital was returned through $10 million in share repurchases and $30 million in subordinated debt redemption. First Merchants maintains a strong CET1 capital ratio of 11.5% and a 54.54% efficiency ratio, demonstrating solid financial health, growth, and a shareholder-friendly approach. Hedge funds are also showing interest in FRME, with 16 portfolios holding the stock at the end of the fourth quarter. While FRME has potential, the focus remains on AI stocks with greater promise for higher returns in a shorter timeframe. For those seeking AI stocks with even more potential, consider exploring the cheapest AI stock options.

Read more: First Merchants Corporation (FRME): A Bull Case Theory