UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934

                         ------------------------------

        DATE OF REPORT (Date of earliest event reported): August 14, 2001

                         ------------------------------

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

                         ------------------------------

          INDIANA                        0-17071                  35-1544218
(State or other jurisdiction     (Commission File Number)       (IRS Employer
      of incorporation)                                      Identification No.)


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


                                 (765) 747-1500
              (Registrant's Telephone Number, including Area Code)


                                   Page 1 of 6
                             Exhibit Index on Page 4



Items 1-4.     Not Applicable.

Item 5.        Other Events and Regulation FD Disclosure.

     On August 14, 2001, the Board of Directors of First  Merchants  Corporation
declared a five percent (5%) stock dividend on its shares of outstanding  common
stock.  The dividend is payable to  shareholders of record on September 3, 2001.
The date of  delivery of shares to be issued  pursuant to the stock  dividend is
September 24, 2001.

     Fractional shares will not be issued in connection with the stock dividend.
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  September  3,  2001  record  date,  as  reported  by the  National
Association of Securities Dealers Automated Quotations System.

Item 6.        Not Applicable.

Item 7.        Financial Statements and Exhibits.

               (a)  Not Applicable.

               (b)  Not Applicable.

               (c)  (99) Press Release dated August 22, 2001.

Item 8.        Not Applicable.

Item 9.        Not Applicable.


                                     Page 2



                                   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 22, 2001.


                                        FIRST MERCHANTS CORPORATION



                                        ----------------------------------------
                                        Larry R. Helms,
                                        Senior Vice President


                                     Page 3



                                  EXHIBIT INDEX


(99)   Press Release dated August 22, 2001.