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First MerchantsFRME -0.47%63 Equity-to-Asset is 0.13 as of Jun. 2026, which is at its 10-year median of 0.13. GuruFocus rates FRME with a GF Score™ of 63/100 and a GF Value™ of $40.45 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,524 Banks companies, First Merchants ranks better than 78.54% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. First Merchants's Total Stockholders Equity for the quarter that ended in Jun. 2026 was $2,697.2 Mil. First Merchants's Total Assets for the quarter that ended in Jun. 2026 was $21,348.8 Mil.
Therefore, First Merchants's Equity to Asset Ratio for the quarter that ended in Jun. 2026 was 0.13.
The historical rank and industry rank for First Merchants's Equity-to-Asset or its related term are showing as below:
FRME'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.11 Med: 0.13 Max: 0.14
Current: 0.13
During the past 13 years, the highest Equity to Asset Ratio of First Merchants was 0.14. The lowest was 0.11. And the median was 0.13.
FRME's Equity-to-Asset is ranked better than 78.54% of 1524
companies
in the Banks industry
Industry Median: 0.1
vs FRME: 0.13
First Merchants (NAS:FRME) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
First Merchants Equity-to-Asset Related Terms
First Merchants Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for First Merchants's Equity-to-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRME vs NBTB, WAFD, TRMK: Equity-to-Asset Comparison
For the Banks - Regional subindustry, First Merchants's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Merchants Equity-to-Asset vs Banks Industry
For the Banks industry and Financial Services sector, First Merchants's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where First Merchants's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
First Merchants's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First Merchants (FRME) has a Equity-to-Asset of 0.13 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on First Merchants and its competitors. This is near median its historical median of 0.13. Over the past decade, First Merchants' Equity-to-Asset has ranged from 0.11 to 0.14. According to the industry distribution chart, First Merchants ranks #327 out of 1524 companies in the Banks industry, placing it in the top 21.5%.
Is First Merchants' Equity-to-Asset too high?
First Merchants' current Equity-to-Asset of 0.13 is near median its 10-year median of 0.13. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 0.14. The Banks industry median Equity-to-Asset is 0.10. First Merchants' value of 0.13 is 30% above this industry median. Based on the distribution chart, First Merchants ranks #327 out of 1524 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, First Merchants has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Merchants' Equity-to-Asset compare to NBTB and WAFD?
According to the Banks industry distribution chart, First Merchants ranks #327 out of 1524 companies for Equity-to-Asset. This places First Merchants in the top 22% of its industry — outperforming the majority of peers. The industry median Equity-to-Asset is 0.10. First Merchants' value of 0.13 is 30% above this benchmark. Historically, First Merchants' own Equity-to-Asset has ranged from 0.11 to 0.14 over the past decade. While the company's 10-year median is 0.13 vs. the industry median of 0.10, First Merchants has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Equity-to-Asset for a Banks company?
The median Equity-to-Asset among Banks companies is 0.10, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current Equity-to-Asset of 0.13 is 30% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on First Merchants and its competitors. For the Banks industry, the median Equity-to-Asset is 0.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current Equity-to-Asset is 0.13, which is near median its own 10-year median of 0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Merchants stock overvalued right now?
Based on GuruFocus' analysis, First Merchants (FRME) is currently considered Fairly Valued. The stock's GF Value™ is $40.45, compared to a current price of $42.58 — trading 5.3% above its estimated fair value. The current Equity-to-Asset is 0.13, which is near median its 10-year median of 0.13 and 30% above the Banks industry median of 0.10. First Merchants' overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For First Merchants (FRME), the current Equity-to-Asset is 0.13 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Merchants (FRME) Overvalued in 2026?
Based on GuruFocus' analysis, First Merchants stock appears to be overvalued.
The current stock price of $42.58 is trading 5.3% above its estimated GF Value™ of $40.45.
GuruFocus considers First Merchants to be Fairly Valued.
Key valuation signals for FRME:
Equity-to-Asset: 0.13 (near median its 10-year median of 0.13)
GF Value™: $40.45 vs. price of $42.58 (5.3% above fair value)
Industry Position: 30% above the Banks median (#327 of 1524)
No single metric tells the full story. See the FRME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment, which is community banking.
63GF Score
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