Monitor the final pricing supplement for the actual offering size, interest rate, and maturity. The use of proceeds includes common stock repurchases, which could provide modest support to FRME shares, but the impact depends on the final size relative to market cap.
Price Chart
Executive Summary
First Merchants Corporation filed a preliminary prospectus supplement for an offering of fixed-to-floating rate subordinated notes intended to qualify as Tier 2 regulatory capital. The aggregate principal amount, interest rate, maturity date, and other key terms are all placeholder values (undisclosed) as this is a preliminary filing. Proceeds are earmarked for general corporate purposes including potential common stock repurchases. The filing is a routine capital management action with no material financial impact on common equity holders.
Key Facts
- Offering of % Fixed-to-Floating Rate Subordinated Notes due — all terms (principal amount, interest rate, maturity) are undisclosed placeholders in this preliminary filing.
- Notes intended to qualify as Tier 2 capital under Federal Reserve rules for bank holding companies.
- Net proceeds estimated at $ (undisclosed) after underwriting discount and expenses; use includes general corporate purposes and common stock repurchases.
- As of June 30, 2026, First Merchants had total assets of ~$21.3B, total deposits of ~$16.8B, and total stockholders' equity of $2.7B.
- Total risk-based capital ratio was 12.98% at the holding company level as of June 30, 2026.
Financial Impact
Undisclosed — all dollar amounts in the filing are placeholder values. The offering size and net proceeds are not specified.
Risk Factors
- Notes are unsecured and subordinated to senior indebtedness; structurally subordinated to $18.6B in subsidiary liabilities.
- No trading market exists for the Notes; liquidity risk for holders.
- Regulatory restrictions may limit ability to pay interest or principal.
- Indenture contains no financial covenants or limits on additional indebtedness.
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001193125-26-398577 |
| Document: 0001193125-26-398577-index-headers.html | 0001193125-26-398577 |
| Document: 0001193125-26-398577-index.html | 0001193125-26-398577 |
| Document: 0001193125-26-398577.txt | 0001193125-26-398577 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $40.83 $40.68 | ▼ −0.37% | ▲ +0.15% | $40.94 (+0.27%) |
Oct 21, 2026 5d ago | Press Release | $40.83 $40.68 | ▼ −0.37% | ▲ +0.15% | $40.94 (+0.27%) |
Oct 15, 2026 11d ago | 8-K | $39.48 $39.60 | ▲ +0.30% | ▲ +1.41% | $40.94 (+3.70%) |
Oct 15, 2026 11d ago | Press Release | $39.48 $39.60 | ▲ +0.30% | ▲ +1.41% | $40.94 (+3.70%) |
Oct 1, 2026 26d ago | 8-K | $39.58 $40.15 | ▲ +1.44% | ▲ +0.70% | $40.94 (+3.44%) |
Oct 1, 2026 26d ago | Press Release | $39.58 $40.15 | ▲ +1.44% | ▲ +0.70% | $40.94 (+3.44%) |
Sep 30, 2026 27d ago | Press Release | $39.78 | awaiting T+1 | — | $40.94 (+2.92%) |
Sep 25, 2026 4w ago | 8-K | $40.71 $40.37 | ▼ −0.84% | ▼ −0.09% | $40.94 (+0.56%) |
Sep 24, 2026 4w ago | 424B5 | $40.71 $40.37 | ▼ −0.84% | ▼ −0.09% | $40.94 (+0.56%) |
Sep 23, 2026 4w ago | Press Release | $40.49 $40.71 | ▲ +0.56% | ▲ +0.01% | $40.94 (+1.12%) |
US Market Status
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