First Merchants vs Stock Yards Bancorp

This page compares First Merchants Corp and Stock Yards Bancorp Inc, examining their business models, financial performance, and market context. The analysis presents how each organisation serves customers, offers products, and navigates its regional and competitive landscape in clear, neutral terms. Educational content, not financial advice.

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.

Stock Yards Bancorp (SYBT)

Stock Yards Bancorp, Inc. (SYBT) is a regional bank holding company with a community-banking franchise and a market capitalisation of about $2.00 billion. It generates revenue from traditional banking activities — interest earned on loans and securities, fees from deposit services and wealth management, and ancillary insurance or advisory services. Investors often watch net interest margin, loan growth, deposit stability and credit quality as key performance drivers. As a smaller regional bank, SYBT can benefit from close customer relationships and local market knowledge, yet it can also be more sensitive to regional economic trends, loan concentrations and interest-rate moves. This summary is for general educational purposes only and not personalised advice; values can rise and fall and past performance is no guarantee of future returns. Prospective investors should review up-to-date financial reports and consider their own risk tolerance and investment horizon before acting.

Comparison Snapshot

Key Financial Metrics

FRME

Metric

SYBT

$2.24B

Market Cap

$2.03B

17.56%

Potential Profit

11.81%

Buy

Analyst Rating

Hold

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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Investment Analysis

First Merchants

FRME

Pros

First Merchants demonstrated strong profitability with a 44.1% increase in net income and EPS growth in Q2 2025 compared to the prior year.
The bank has a robust capital position with a Common Equity Tier 1 Capital Ratio of 11.35%, supporting financial stability.
Commercial loan growth and total deposits increased significantly, driving revenue and reflecting healthy business expansion.

Considerations

Despite recent earnings growth, First Merchants' revenue showed a decline of 5.64% in 2024 compared to 2023, indicating some top-line pressure.
Nonperforming assets, although decreased quarter-over-quarter, remain a monitoring point at 36 basis points of total assets.
The efficiency ratio at 53.99% suggests room for improvement in operational efficiency relative to peers.

Stock Yards Bancorp

SYBT

Pros

Stock Yards Bancorp benefits from a focused regional presence, which allows tailored banking services and strong community relationships.
The company has shown consistent deposit growth, supporting stable funding and lending capacity.
Recent efforts in digital banking enhancements have improved customer experience and operational scalability.

Considerations

Stock Yards Bancorp faces exposure to agricultural sector cyclicality, which can create earnings volatility due to commodity price shifts.
Profitability metrics such as return on assets and equity are modest, limiting the firm's efficiency compared to larger peers.
The regional banking landscape is highly competitive, presenting execution risks in loan growth and market share retention.

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About The Companies

Comparison Snapshot

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