First Merchants vs Hilltop Holdings

This page compares First Merchants Corp and Hilltop Holdings Inc, offering a neutral overview of their business models, financial performance, and market context. It presents key factors that influence each company’s position in the industry, helping readers understand how they operate and compete without endorsement. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

FRME

Metric

HTH

$2.18B

Market Cap

$2.17B

15.94%

Potential Profit

-4.12%

Buy

Analyst Rating

Hold

Investment Analysis

First Merchants

FRME

Pros

First Merchants reported a 44% year-on-year increase in net income for Q2 2025, reflecting strong profitability and effective revenue growth.
The bank maintains a robust capital position with a Common Equity Tier 1 ratio of 11.35% and has actively repurchased shares, supporting shareholder value.
Commercial loan growth was substantial, with total loans increasing 9.1% annualized on a linked quarter basis, driving asset expansion and interest income.

Considerations

Revenue declined by 5.6% in 2024 compared to the prior year, indicating potential challenges in top-line growth despite improved profitability.
Recent executive share sales have raised questions about internal confidence in the company's growth outlook and future prospects.
The stock's price-to-earnings ratio, while attractive, is supported by cyclical commercial lending, which may be sensitive to regional economic downturns.

Hilltop Holdings

HTH

Pros

Hilltop Holdings maintains a flawless balance sheet with strong financial health and proven track record in business and consumer banking.
The company reported a net profit margin of 12.67% over the last twelve months, indicating efficient cost management and solid earnings generation.
Hilltop Holdings pays a reliable dividend, with a recent ex-dividend date and consistent payout history, appealing to income-focused investors.

Considerations

The debt-to-equity ratio stands at 101.9%, suggesting a relatively high level of leverage compared to industry peers.
Revenue growth has been modest, with limited expansion in recent periods, which may constrain future earnings momentum.
The company's earnings are concentrated in cyclical sectors, exposing it to potential downturns in the broader economic environment.

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.

Hilltop Holdings (HTH)

Hilltop Holdings Inc. is a diversified financial holding company based in Texas. It operates through three main business segments, which might offer a degree of balance. The banking segment, through PlainsCapital Bank, provides a range of business and consumer banking services across the state. The broker-dealer arm, Hilltop Securities, offers investment advisory and brokerage services to its clients. Finally, the mortgage origination segment, PrimeLending, operates nationally, originating and servicing a variety of home loans which are then often sold into the secondary market. This structure gives the company exposure to different areas of the financial services industry. 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 not a recommendation to invest.

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

Explore Basket

Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Published: October 10, 2025

Explore Basket

Buy FRME or HTH in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Comparisons

First Merchants vs Butterfield

First Merchants vs Butterfield: a comparison

First Merchants vs Enterprise Financial

First Merchants Corp vs Enterprise Financial Services Corp

First Merchants vs Hilltop Holdings

Comparison Snapshot