First Merchants vs Butterfield

First Merchants Corp and Bank of N.T. Butterfield & Son Limited are examined in this page, outlining how their business models differ, how their financial performance is interpreted, and the market context in which they operate. The tone remains neutral and accessible, presenting clear explanations without recommendation. Educational content, not financial advice.

First Merchants Corp and Bank of N.T. Butterfield & Son Limited are examined in this page, outlining how their business models differ, how their financial performance is interpreted, and the market co...

About The Companies

First Merchants (FRME)

First Merchants Corporation (ticker FRME) is a regional bank holding company headquartered in Indiana that operates community banks and provides commercial and consumer lending, deposit services and treasury management across several Midwestern states. With a market capitalisation around $2.13 billion, it concentrates on relationship banking for local businesses and households, aiming for steady loan growth and fee income. Key factors for investors include net interest margin trends, credit quality, deposit stability and capital ratios — all of which are sensitive to interest‑rate cycles and local economic conditions. The group has pursued modest expansion through a mix of organic growth and selective acquisitions while maintaining dividend distributions. That said, performance can vary with economic cycles, regulatory change and sector concentration risks. This information is educational and not personalised investment advice; investors should review up‑to‑date financial reports, consider their risk tolerance and consult a financial professional before making decisions.

Butterfield (NTB)

Comparison Snapshot

Key Financial Metrics

FRME

Metric

NTB

$2.24B

Market Cap

$2.23B

17.47%

Potential Profit

-4.45%

Buy

Analyst Rating

Buy

Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Fifth Third's $10.9 billion acquisition of Comerica creates a new top-ten U.S. bank, signaling a potential wave of consolidation in the regional banking sector. This theme identifies other mid-sized regional banks that could become prime candidates for similar mergers or acquisitions as the industry continues to scale up.

Published: October 10, 2025

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Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Fifth Third's $10.9 billion acquisition of Comerica creates a new top-ten U.S. bank, signaling a potential wave of consolidation in the regional banking sector. This theme identifies other mid-sized regional banks that could become prime candidates for similar mergers or acquisitions as the industry continues to scale up.

Published: October 10, 2025

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Investment Analysis

First Merchants

FRME

Pros

Reported a 44% increase in net income in Q2 2025, demonstrating strong profitability growth.
Robust loan growth with a 9.1% annualized increase in total loans on a linked quarter basis in Q2 2025.
Maintains a solid capital position with a Common Equity Tier 1 Capital Ratio above 11%, ensuring financial stability.

Considerations

Efficiency ratio remains relatively high around 54%, indicating room for expense optimization.
Total deposits showed volatility including a decline in the previous quarters partly due to branch sales.
Trading valuation presents a moderate P/E near 9.5x which may limit immediate upside potential relative to peers.

Butterfield

NTB

Pros

Bank of N.T. Butterfield & Son Limited holds a diversified international presence reducing overreliance on single markets.
Has shown consistent revenue growth supported by wealth management and fiduciary services expansion.
Strong balance sheet with adequate liquidity to support future credit demand and operational needs.

Considerations

Operations face periodic exposure to regulatory and geopolitical risks due to international footprint.
Profit margins are constrained by ongoing investments in technology and compliance enhancements.
Growth is sensitive to macroeconomic shifts, particularly changes in interest rates affecting net interest margins.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave