First Merchants Executives Trim Shares, Buy Phantom Stock as Confidence Grows

Insider Moves at First Merchants Corp. – What the Numbers Tell Us

The recent filing by Chief Risk Officer Scurlock Eva A. shows her holding 23,290 shares of common stock, including a block of 2,223 restricted‑stock awards. While the transaction itself is a routine holding adjustment, it arrives against a backdrop of notable insider activity across the board. Chief Financial Officer Michele Kawiecki has sold 910 shares, and Chief Executive Officer Mark Hardwick off‑loaded 3,857 shares, all on 18–22 December 2025. Meanwhile, executives such as Stephan Fluhler and Mark Hardwick are accumulating phantom stock at $38.08 per share, signaling confidence in the company’s future.

What These Trades Mean for Investors

The current price of $37.94 is near the 52‑week low of $33.13, yet the stock remains comfortably below its 52‑week high of $45.62, suggesting room for upside if fundamentals hold. The price‑to‑earnings ratio of 9.51 and price‑to‑book ratio of 0.923 indicate the stock trades modestly below book value, a potential buying signal for value investors. The insider sales, while sizeable, do not appear to be driven by a lack of confidence; the executives who sold shares are also buying phantom stock, a form of incentive that aligns their interests with long‑term shareholder value.

Implications for the Company’s Future

First Merchants’ focus on diversified financial services—deposit taking, lending, credit cards, and trust services—provides multiple revenue streams. The recent dividend announcement on preferred stock reinforces a commitment to returning capital to shareholders. The modest price drift (–0.21% weekly, –3.00% monthly) suggests the market is still digesting the company’s earnings outlook. If the bank’s loan portfolio continues to perform and interest margins improve, the stock could rebound toward its 52‑week high, offering upside to those who purchase on the current dip.

Bottom Line for Investors

The insider transactions, when viewed in context, point to a balanced approach: executives are trimming positions while also investing in long‑term equity incentives. For investors, this signals that management remains engaged and optimistic about First Merchants’ trajectory. The current valuation offers a modest entry point for those who believe the company’s diversified banking model will deliver sustainable growth and dividend returns in the coming quarters.