The business behind the dividend
| Measure | FRME | Median | Formula |
|---|---|---|---|
| Return on equity | 9.2% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 28.0% | 14.3% | Operating income ÷ revenue |
| Net margin | 24.4% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
| Accruals | -0.3% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Free cash flow, Interest cover, Owner earnings, Return on capital employed — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 9.2% | 8.7% | 10.0% | 10.9% | 10.7% | 7.9% | 9.2% | 11.3% | 7.4% | 9.0% | 9.2% |
| Operating margin | 28.0% | 24.4% | 29.0% | 42.3% | 53.9% | 37.9% | 41.6% | 46.1% | 42.4% | 42.9% | 41.6% |
| Net margin | 24.4% | 21.2% | 25.0% | 36.7% | 46.0% | 33.1% | 35.3% | 39.0% | 30.5% | 32.0% | 32.0% |
How it compares in banks & insurers
Among the 377 banks & insurers companies here measured on GAAP earnings, First Merchants pays out less than 135 of them. The median for that group is 30.6%, against this company’s 36.9%.
Closest on GAAP earnings
- First Financial Bancorp (FFBC) 36.8%
- Farmers & Merchants Bancorp (FMAO) 37.0%
- City Holding (CHCO) 37.2%
- Trico Bancshares / (TCBK) 37.3%
Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →