CONSENT OF INDEPENDENT AUDITORS



We consent to the incorporation by reference in the Registration Statement on 
Form S-4 and Prospectus of First Merchants Corporation, relating to the 
issuance of securities in the proposed merger of Anderson Community Bank into 
Pendleton Banking Company (to be renamed The Madison Community Bank), a 
wholly owned subsidiary of First Merchants Corporation, of our report, dated 
January 23, 1998 on the consolidated financial statements of First Merchants 
Corporation as of December 31, 1997 and 1996 and for each of the three years 
in the period ended December 31, 1997. We also consent to the reference to 
our firm appearing under the headings "Selected Financial Data" and "Experts" 
in the Prospectus.



Olive LLP
January 4, 1999
Indianapolis, Indiana


                                 Ex. 23(a)-1