April 8, 1996



First Merchants Corporation
200 East Jackson Street
Muncie, Indiana  47305

Gentlemen:

      You have requested our opinion in connection with the proposed public
offering by First Merchants Corporation, an Indiana corporation (the "Company"),
of up to 565,705 shares of common stock ("Shares") covered by a Registration
Statement on Form S-4 (the "Registration Statement") filed with the Securities
and Exchange Commission on or about April 8, 1996.

      In connection with your request to us, we have been provided with the
      following:

      1.     The Articles of Incorporation and By-Laws of the Company;

      2.     The minute book of the Company; and

      3.     A certificate from the Indiana Secretary of State
             certifying that the Company is a corporation duly organized
             and existing under and by virtue of the laws of the State
             of Indiana.

      For purposes of this opinion, we have examined the above documents and
have relied upon them as to matters of fact.  We have not independently checked
to verify the accuracy or completeness of the information set forth or certified
in such documents.

      Based solely upon the foregoing documents and examination, and subject to
the foregoing limitations and qualifications, we are of the opinion that:

      1.     As of this date, the Company is a duly organized and
             existing corporation under the laws of the State of Indiana
             with the corporate power and authority to conduct its
             business as described in the Registration Statement; and

      2.     The Shares, when issued as contemplated by the Registration
             Statement in exchange for payment therefor, will be validly
             issued, fully paid and non-assessable.

      We consent to the  use of this opinion as an exhibit to the Registration
Statement and to the reference made to us in the Registration Statement and
Proxy Statement-Prospectus forming a part thereof under the caption "Legal
Opinions."  By giving this consent, we do not admit that we come within the
category of persons whose consent is required under Section 7 of the Securities
Act of 1933, as amended, or the rules and regulations of the Securities and
Exchange Commission thereunder.

                                  Very truly yours,

                                  BINGHAM SUMMERS WELSH & SPILMAN

                                       Ex. 5-1