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Posted by
Two Blokes May 14 -
Filed in
Stock
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First Merchants' current valuation is fair, with a solid 3.57% dividend yield, but limited capital gain potential and historical dividend growth concerns. FRME's deposits are sound but exhibit slow growth, with 30.40% being uninsured, posing a potential risk during economic downturns or panics. The bank's securities portfolio has significant unrealized losses, amounting to 23% of equity, necessitating a wait for maturity to avoid substantial equity deterioration.
