UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 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 15, 2003

                           FIRST MERCHANTS CORPORATION

             (Exact name of registrant as specified in its charter)

                                     INDIANA

                 (State or other jurisdiction of incorporation)

0-17071                                                  35-1544218
(Commission File Number)                       (IRS Employer Identification No.)

200 East Jackson Street
P.O. Box 792
Muncie, Indiana                                          47305-2814
(Address of principal executive offices)                 (Zip Code)

       Registrant's telephone number, including area code: (765) 747-1500


ITEM 5.           Other Events and Regulation FD Disclosure.

         On August 12, 2003, 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
August 29,  2003.  The date of delivery  of shares to be issued  pursuant to the
stock dividend is September 12, 2002.

         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 August 29, 2003 record  date,  as reported by the
National Association of Securities Dealers Automated Quotations System.

ITEM 7.           Financial Statements and Exhibits.

                           (a)      Not Applicable.

                           (b)      Not Applicable.

                           (c)      (99) Press Release dated August 15, 2003.


                                   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.


                                 By:  /s/  Larry R. Helms
                                    --------------------------------------------
                                           Larry R. Helms, Senior Vice President


Dated:  August 15, 2003

<PAGE>
                                 EXHIBIT INDEX
                                 -------------

Exhibit No.
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    99                  Description
                        -----------
                        Press Release, dated August 15, 2003, issued by
                        First Merchants Corporation.



<PAGE>
                          First Merchants Corporation

                                 Exhibit No. 99

                      Press Release, dated August 15, 2003

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

August 15, 2003

FOR IMMEDIATE RELEASE For more information, contact:
Mark K. Hardwick, Vice President/Chief Financial Officer, 765-751-1857
http://firstmerchants.com

SOURCE: First Merchants Corporation, Muncie, Indiana

FIRST MERCHANTS ANNOUNCES 21st CONSECUTIVE ANNUAL DIVIDEND INCREASE

First  Merchants  Corporation  (NASDAQ - FRME) has  announced  that its Board of
Directors  declared a 5% share dividend to its  shareholders of record on August
29, 2003,  payable on September  12,  2003.  The Board also  declared a $.23 per
share cash dividend to shareholders  of record on September 5, 2003,  payable on
September 19, 2003.  The $.23 per share cash  dividend is consistent  with prior
quarters and affords to  shareholders of record on August 29, 2003, an effective
5% increase by virtue of the stock dividend.

Michael  L.  Cox,  President  and  Chief  Executive  Officer,  commented  "First
Merchants  Corporation has  consistently  produced a return to its  shareholders
through  dividends and price  appreciation that is attractive in today's capital
markets. We are pleased to continue our record of consecutive dividend increases
to the 21st year.  Dividends have gained renewed  appreciation in the investment
community,  particularly given the recent tax cut on dividend distributions.  As
investors appropriately look toward total return, your board believes consistent
and increasing  dividend  distributions are important to our valued  shareholder
group.  The ongoing cash dividend  applied to these new shares now  represents a
3.5 % yield and compares  favorably with other available  investments in today's
capital markets."

First  Merchants  Corporation  is an  East  Central  Indiana  Financial  Holding
Company.  Its  subsidiaries  include First  Merchants  Bank,  N.A.,  the Madison
Community  Bank,  First United Bank,  Union County  National  Bank, The Randolph
County Bank, The First National Bank of Portland,  Decatur Bank & Trust Company,
Frances Slocum Bank, Lafayette Bank & Trust Company,  Commerce National Bank and
Merchants Trust Company. The Corporation also operates First Merchants Insurance
Services,  a  full-service  property  casualty,  personal  lines and  healthcare
insurance agency,  headquartered in Muncie, Indiana, and is a majority member of
Indiana Title Insurance Company LLC, a title insurance agency.

First Merchants  Corporation's  common stock is traded  over-the-counter  on the
NASDAQ  National Market System under the symbol FRME and is rated A+ by Standard
& Poor's Corporation.
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