$34.68 $0.33 (0.0%)

03:37 PM EDT on 05/24/19

First Merchants Corp (NASDAQ:FRME)

CAPS Rating: No stars

A financial holding company, which operates through its banking subsidiaries.

Current Price $34.68 Mkt Cap $1.8B
Open $34.52 P/E Ratio 0.00
Prev. Close $34.68 Div. (Yield) $3.69 (2.4%)
Daily Range $34.28 - $34.73 Volume 42,298
52-Wk Range $33.87 - $41.40 Avg. Daily Vol. 3

Caps

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All Players

55 Outperform
16 Underperform
 

All-Star Players

9 Outperform
3 Underperform
 

Wall Street

4 Outperform
0 Underperform
 

Top NASDAQ:FRME Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

JakilaTheHun (99.92)
Submitted September 16, 2009

My record on small banks is rather dismal thus far. I've had some big successes on the large cap banks (such as BAC, BBT, and STI), but all my small-cap bank selections have been absolutely destroyed or, in best-case scenarios, traded sideways. Yet,… More

Top Bear Pitch

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NASDAQ:FRME VS S&P 500 (SPY)

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Fools bearish on NASDAQ:FRME are also bearish on:

Recent Community Commentary

Read the most recent pitches from players about FRME.

Recs

0
Member Avatar EclecticRecluse (78.51) Submitted: 5/4/2011 4:50:35 AM : Underperform Start Price: $8.27 NASDAQ:FRME Score: -210.94

Deteriorating Professional Opinion

Recs

6
Member Avatar JakilaTheHun (99.92) Submitted: 9/15/2009 9:45:08 PM : Outperform Start Price: $6.03 NASDAQ:FRME Score: +306.75

My record on small banks is rather dismal thus far. I've had some big successes on the large cap banks (such as BAC, BBT, and STI), but all my small-cap bank selections have been absolutely destroyed or, in best-case scenarios, traded sideways. Yet, I persist in picking these things for some idiotic reason. Maybe I'm convinced that I can eventually learn this sector or maybe I'm still attracted to the unbelievable amount of bearishness in the sector.

FRME is trading at a 52-week low, but I can see no reason as to why except that the market is terrified that any and every small cap bank is going to get shut down by the FDIC. There's also the fact that FRME's most recent earnings look kind of ugly, but after looking at their historical performance, I'm left to wonder whether their auditors are requiring them to be overly conservative in their allowance for loan losses, which is almost 7X the amount it was over the equivalent period last year.

FRME recently acquired Lincoln Bank Corp, which also accounts for some of the pessimism in their financial statements. While I might be foolish to see their acquisition as a sign that they are, in fact, still in good shape --- I'm tempted to reach that conclusion. It actually allowed them to grow significantly at a very cheap price. In fact, their revenues are higher this year than they were last year, which is rarer than rare in the banking industry. As I said, the only thing that suppresses their earnings is the extremely high allowance for loan losses.

There has been a large number of inside buys over the past nine months, as well. This might not mean much of anything, if my research on commercial banks says anything about it (http://seekingalpha.com/article/118150-insider-transactions-at-commercial-banks), but it's not a bad sign either.

FRME's balance sheet looks to be in reasonable shape to me. Liquid assets comprise roughly 16% of total assets, which is significantly higher than most banks I've encountered. Tangible common equity is worth about $14.10 per share. Even if I increase their allowance for loan losses to 5% of the total value of their loan portfolio, I still come up with adjusted common equity of about $9.50 per share.

Historically, earnings for FRME have been upwards of $1 per share. It's difficult to say what the "new normal" will be for this bank, but given the acquisition of Lincoln, it is possible that they will earn this much again at some point. At the current price, even if they only earned 50 - 75 cents per share on a yearly basis in the future, this still might not be that bad of a deal.

FRME is trading at a 52-week low and the current dividend yield is about 4.9%. Who knows whether that will hold up or not, but I think this bank will survive from my scanty research. I see no real evidence that it's on the brink of collapse or anything, even if the market believes that to be the case. Then again, I see no real evidence that I know anything about successfully investing in small-cap banks, so that's food for thought.

Recs

0
Member Avatar jerseyvalueguy (< 20) Submitted: 2/5/2008 10:08:30 PM : Underperform Start Price: $21.48 NASDAQ:FRME Score: +57.69

Short covering will be comming to an end soon. Looking for 20 in 3 months. Longer term (2 yrs.)could hit 35+.

Leaderboard

Find the members with the highest scoring picks in FRME.

Score Leader

jacobfernando

jacobfernando (58.68) Score: +503.30

The Score Leader is the player with the highest score across all their picks in FRME.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
jacobfernando 58.68 12/16/2009 Outperform NS $4.58 +656.45% +153.15% +503.30 0 Comment
dbjella < 20 1/6/2010 Outperform 5Y $4.79 +624.27% +149.31% +474.95 0 Comment
FakePitchRecGuy < 20 12/28/2009 Outperform 5Y $4.96 +599.70% +150.68% +449.02 0 Comment
CallMeSmokinJoe 81.95 12/11/2009 Outperform 5Y $5.01 +592.28% +154.63% +437.66 0 Comment
ElginBaylorkt < 20 1/19/2010 Outperform 5Y $5.31 +553.03% +149.09% +403.94 0 Comment
rty168 25.55 11/16/2009 Outperform 5Y $5.33 +551.10% +154.67% +396.42 0 Comment
yongg1028 57.00 2/4/2010 Outperform 5Y $5.37 +545.53% +159.70% +385.83 0 Comment
OscarMac < 20 10/22/2009 Outperform 5Y $5.47 +534.46% +161.90% +372.56 0 Comment
Boum < 20 10/20/2009 Outperform 5Y $5.68 +510.10% +160.03% +350.07 0 Comment
XTCNonsuch 77.77 10/16/2009 Outperform 5Y $5.85 +492.79% +160.13% +332.66 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackFigPartners < 20 6/3/2014 Outperform NS $18.62 +86.28% +47.10% +39.18 0 Comment
TrackDADavidson 86.92 9/26/2013 Outperform NS $15.85 +118.79% +67.15% +51.64 0 Comment
TrackSchneider 80.87 6/24/2011 Outperform 5Y $7.71 +349.52% +120.64% +228.88 1 Comment
TrackStifel 90.62 4/29/2011 Outperform NS $8.09 +328.79% +107.86% +220.93 0 Comment
TrackRBCCapMkts 85.49 10/25/2006 Underperform NS $23.19 -10.21% +9.26% +19.47 10/22/2007 @ $20.82 0 Comment

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