First Merchants vs Busey

This page compares First Merchants Corp and First Busey Corp, examining business models, financial performance, and market context in a neutral, accessible way. It highlights strategy, service lines, geographic footprint, and competitive landscape to help readers understand how each organisation approaches growth and risk. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

FRME

Metric

BUSE

$2.18B

Market Cap

$2.16B

15.94%

Potential Profit

4.24%

Buy

Analyst Rating

Buy

Investment Analysis

First Merchants

FRME

Pros

Net income rose 44% year-on-year in Q2 2025, reflecting strong profitability and effective revenue growth.
Robust capital position with a Common Equity Tier 1 ratio of 11.35%, supporting financial stability.
Efficiency ratio improved to 54% in Q2 2025, indicating effective cost management and operational discipline.

Considerations

Revenue declined by 5.6% in 2024 compared to the prior year, raising concerns about top-line sustainability.
Earnings dropped by 10% in 2024, suggesting potential challenges in maintaining recent profit growth.
Recent insider share sales and mixed results may signal caution among executives regarding future growth.

Busey

BUSE

Pros

Attractive dividend yield of 4.47% based on current share price, appealing to income-focused investors.
Forward price-to-earnings ratio of 8.89 suggests the stock may be undervalued relative to earnings potential.
Solid trailing twelve-month earnings per share of $1.27, indicating consistent profitability.

Considerations

Limited recent growth visibility, with no clear catalysts for significant revenue expansion in the near term.
Relatively high beta of 1.08, indicating greater volatility compared to the broader market.
No recent analyst price targets or strong consensus ratings, suggesting limited institutional coverage or momentum.

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.

Busey (BUSE)

First Busey Corporation is a US-based financial holding company that operates across three principal segments. The Banking segment, its largest, provides a comprehensive range of services to individuals and businesses through its subsidiary, Busey Bank. The Wealth Management division offers asset management, investment, and advisory services to a diverse client base, including individuals, businesses, and foundations. This includes financial planning, trust services, and business succession planning. Finally, its FirsTech segment focuses on the technology side of finance, delivering payment technology solutions and tools to help clients manage billing and reconciliation. This diversified model allows the company to serve a wide spectrum of financial needs. As with any investment, the value of shares can go down as well as up, and returns are not guaranteed. This information is for educational purposes and is not financial advice.

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

Published: October 10, 2025

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6% Interest on Cash

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Comparison Snapshot