FORM 8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934

                         ------------------------------
                         DATE OF REPORT: August 11, 1998

                         ------------------------------
                           FIRST MERCHANTS CORPORATION
             (Exact Name of Registrant as Specified in its Charter)

                         -------------------------------
        INDIANA                      0-17071                   35-1544218
(State of Incorporation)          (SEC File No.)          (IRS Employer ID. No.)

                             200 East Jackson Street
                                  P.O. Box 792
                              Muncie, IN 47305-2814
                    (Address of Principal Executive Offices)

                                 (765) 747-1500
                         (Registrant's Telephone Number)



Items 1-4.   Not Applicable.

Item 5.      OTHER EVENTS.

     On August 11, 1998, the Board of Directors of First Merchants Corporation
declared a three-for-two split of its shares of outstanding common stock.
Shareholders of record on October 16, 1998, are entitled to participate in the
stock split. The date of delivery for shares to be issued pursuant to the stock
split is October 23, 1998.

     Fractional shares will not be issued in connection with the stock split. In
lieu of issuing fractional shares, the Company shall pay each shareholder
otherwise entitled to a fractional share an amount in cash equal to the fraction
of the average of the highest "bid" and the lowest "offered" quotations for a
share on the October 16, 1998 record date, as reported by the National
Association of Securities Dealers Automated Quotations System, multiplied by
two-thirds (2/3) to adjust for the stock split.

Item 6.      Not Applicable.

Item 7.      Financial Statements and Exhibits.

             (a)   Not Applicable.

             (b)   Not Applicable.

             (c)   (99) Press Release dated August 14, 1998.

Item 8.      Not Applicable.

Item 9.      Not Applicable.


                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

     DATE:  August 19, 1998

                           FIRST MERCHANTS CORPORATION


                              /S/ Larry R. Helms
                              ------------------------------------------
                              Larry R. Helms
                              Senior Vice President



                                  EXHIBIT INDEX

         (99) Press Release dated August 14, 1998.

N / E / W / S   R / E / L / E / A / S / E



August 14, 1998

For more information, contact:
JAMES L. THRASH, SENIOR VICE PRESIDENT/CHIEF FINANCIAL OFFICER, 765-747-1390
OR
DOUG HARRIS, VICE PRESIDENT, INVESTOR SERVICES, 765-741-7278
http://firstmerchants.com


FIRST MERCHANTS ANNOUNCES
3-FOR-2 STOCK SPLIT AND DIVIDEND INCREASE


First Merchants Corporation (NASDAQ-FRME) has announced the declaration of a
3-for-2 split of its shares of outstanding common stock. The split was declared
by the Corporation's Board of Directors at a meeting on August 11, 1998.
Shareholders of record on October 16, 1998 are entitled to participate in the
split. The effective date for shares to be issued pursuant to the split is
October 23, 1998.

At the same meeting, the Board of Directors also approved an increase in
quarterly dividend from $ .28 to $ .30 per share, payable September 18, 1998 to
shareholders of record on September 4, 1998. The increase reflects the Board's
long-term intent to raise dividend levels commensurate with earnings growth.
Dividends have increased in each of the last sixteen years.

First Merchants Corporation is an east central Indiana bank holding company. Its
subsidiaries include First Merchants Bank in Delaware County, Pendleton Banking
Company in Madison County, First United Bank in Henry County, Union County
National Bank, the Randolph County Bank, and First Merchants Insurance Services.

First Merchants Corporation common stock is traded over-the-counter on the
NASDAQ National Market System under the symbol "FRME" and is rated "A+" by
Standard and Poor's Corporation. Quotations are carried in many daily newspapers
and other financial publications and can be found on the company's Internet web
page (http://firstmerchants.com). Eight brokerage firms make a market in First
Merchants Corporation stock: City Securities Corporation; David A. Noyes and
Company; NatCity Investments; Howe, Barnes & Johnson, Inc.; Herzog, Heine,
Geduld, Inc.; Keefe, Bruyette & Woods, Inc.; McDonald & Co.; and 
Robert W. Baird & Co., Inc.

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