U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 4 ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP ( ) Check box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instructions 1(b). 1. Name and Address of Reporting Person HEINRICHS, NELSON W. 7220 NORTH MORRISON ROAD MUNCIE, IN 47304 2. Issuer Name and Ticker or Trading Symbol FIRST MERCHANTS CORPORATION FRME 3. IRS or Social Security Number of Reporting Person (Voluntary) ###-##-#### 4. Statement for Month/Year JULY 1996 5. If Amendment, Date of Original (Month/Year) 6. Relationship of Reporting Person to Issuer (Check all applicable) (X) Director ( ) 10% Owner ( ) Officer (give title below) ( ) Other (specify below) ___________________________________________________________________________________________________________________________________ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect | | Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership | | | | | Beneficially |(D)or | | | | | | | A/| | Owned at |Indir | | | Date |Code|V| Amount | D | Price | End of Year |ect(I)| | ___________________________________________________________________________________________________________________________________| COMMON STOCK |07-03-|G* |V|1,300 |D | |2,344.4031 |D | | |1996 | | | | | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| |07-03-|G* |V|1,300 |A | | |I |Spouse | |1996 | | | | | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| |07-02-|P | |700 |A |25.25 | |I |Spouse | |1996 | | | | | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| |07-12-|P | |500 |A |24.25 | |I |Spouse | |1996 | | | | | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| |07-15-|P | |500 |A |23.875 | |I |Spouse | |1996 | | | | | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| |07-16-|P | |500 |A |23.875 |4,000 |I |Spouse | |1996 | | | | | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| ___________________________________________________________________________________________________________________________________| ___________________________________________________________________________________________________________________________________ Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of| Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect | |or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial | |cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership | |Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | | |Deriva- | | | |Date |Expir| | |ficially |Ind| | |tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| | |Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | | |rity |Date |Code|V| Amount | |ble | | | |Year |(I)| | ___________________________________________________________________________________________________________________________________| Non-Employee Director |25.00 |07-01|A |V|600 |A |01-01|06-30|Common |600 | |1,800 |D | | Stock Option (Right to| |-96 | | | | |-97 |-06 | | | | | | | Buy) | | | | | | | | | | | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | ___________________________________________________________________________________________________________________________________| Explanation of Responses: *Gift to spouse by reporting person of 1,300 shares previously owned by reporting peron's revocable trust. SIGNATURE OF REPORTING PERSON Nelson W. Heinrichs (Confirming Statement on File) DATE July 31, 1996