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MUNCIE, Ind. - First Merchants (NASDAQ:FRME) Corporation (NASDAQ:FRME) has announced a cash dividend of $0.35 per share, payable on September 20, 2024, to shareholders of record as of September 6, 2024. The ex-date for the dividend, which is the date on which the stock starts trading without the dividend's value, is set for September 5, 2024.
First Merchants Corporation, a financial holding company based in Muncie, Indiana, operates with one full-service bank charter, known as First Merchants Bank. Additionally, the company offers private wealth advisory services through its division, First Merchants Private Wealth Advisors.
The company's common stock is actively traded on the NASDAQ Global Select Market System. Daily quotations for First Merchants Corporation's stock can be found in newspapers and on the company's website.
This dividend declaration follows the company's established pattern of returning value to its shareholders and reflects its financial position and commitment to shareholder interests. As a federally registered trademark, First Merchants and its Shield Logo represent the corporation's established presence in the financial services industry.
The information regarding the dividend is based on a press release statement from First Merchants Corporation.
In other recent news, First Merchants Corporation has reported a robust second quarter, with strong growth in net interest income and non-interest income, despite a significant provision expense due to a deteriorating business loan. The company demonstrated notable loan growth, particularly in the commercial sector, and completed key technology initiatives. Keefe, Bruyette & Woods, Piper Sandler, and Stephens have all adjusted their price targets for First Merchants, maintaining positive ratings, following the company's recent performance and future prospects. These adjustments reflect expectations of continued balance sheet growth, robust profitability, and positive future credit quality. In addition to these financial results, First Merchants is actively seeking acquisition opportunities in Indiana, Ohio, and Michigan, indicating ongoing discussions with potential merger and acquisition partners. It's important to note that the company faced a provision expense that impacted earnings, despite the overall positive results. However, the potential for acquisitions, along with a focus on organic growth and prudent capital management, positions First Merchants for continued success in the upcoming quarters.
InvestingPro Insights
Investors in First Merchants Corporation (NASDAQ:FRME) can glean additional insights from real-time data and expert analysis provided by InvestingPro. As of the second quarter of 2024, First Merchants Corporation boasts a market capitalization of $2.15 billion and maintains a Price to Earnings (P/E) ratio of 11.64, reflecting a valuation that may appeal to value-oriented investors. Furthermore, the company's Price to Book (P/B) ratio stands at 0.98, suggesting that the stock is potentially trading near its net asset value.
With a solid track record of raising its dividend for 12 consecutive years and maintaining dividend payments for 36 consecutive years, First Merchants Corporation demonstrates a strong commitment to shareholder returns. This is further evidenced by a robust dividend yield of 3.81% as of the latest data. Although the company has experienced a revenue decline over the last twelve months, with revenue growth at -11.08%, it still maintains a high operating income margin of 40.0%, indicating efficient management of its operations.
Among the "InvestingPro Tips" for First Merchants Corporation, analysts have revised their earnings upwards for the upcoming period, signaling potential optimism about the company's future performance. Additionally, while the company suffers from weak gross profit margins, analysts predict the company will remain profitable this year, a sentiment supported by the fact that it has been profitable over the last twelve months.
For investors looking for more in-depth analysis, there are 6 additional "InvestingPro Tips" available on InvestingPro, which can be accessed at https://www.investing.com/pro/FRME. These tips could provide further guidance on First Merchants Corporation's financial health and future prospects, assisting shareholders in making more informed investment decisions.
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