First Merchants Raises Quarterly Dividend to 37 Cents

First Merchants Corporation (FRME) increased its quarterly dividend to $0.37 per share from $0.36, a 2.78% rise, with the shares trading ex-dividend on June 5, 2026.

The higher payout brings the company’s annualized dividend to $1.48 per share. Based on the locked share price of $41.16, the forward annual yield is 3.6%. The increase extends First Merchants’ consecutive dividend growth streak to 15 years, following a prior dividend cut in 2010.

First Merchants is a financial holding company headquartered in Muncie, Indiana. The company operates through First Merchants Bank and First Merchants Private Wealth Advisors, according to its company materials. Its common stock trades on the Nasdaq Global Select Market under the symbol FRME. Source: https://www.firstmerchants.com/why-us/news/news-detail/2026/02/02/first-merchants-corporation-completes-legal-closing-of-first-saving-financial-group-merger

Context

The dividend increase comes as First Merchants continues to build scale in its regional banking franchise. In February 2026, the company completed the legal closing of its merger with First Savings Financial Group. First Merchants said the transaction would expand its Indiana presence and that the combined company would continue operating as First Merchants Bank. Source: https://www.firstmerchants.com/why-us/news/news-detail/2026/02/02/first-merchants-corporation-completes-legal-closing-of-first-saving-financial-group-merger

For banks, dividend decisions are closely tied to capital, earnings quality, credit conditions and regulatory expectations. First Merchants’ latest increase is modest in size, but it continues a long post-2010 record of annual dividend growth. The company’s listed dividend safety score is 87 out of 100, with an A safety grade.

What It Means For Income Investors

For income investors, the move raises the cash income attached to each share while preserving a quarterly payment schedule. The increase is incremental rather than aggressive, which is typical for many regional banks managing dividend growth alongside balance-sheet and credit-cycle considerations.

The key takeaway is continuity: First Merchants has now grown its dividend for 15 consecutive years, and the new annual dividend rate is $1.48 per share. Investors focused on income may view the event as another data point in the company’s dividend record, while still weighing the usual banking-sector risks, including credit quality, deposit costs and interest-rate sensitivity.