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): July 25, 2006

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

                           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)

                                  Not Applicable
          (Former name or former address, if changed since last report)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
    230.425)

[ ] Soliciting material pursuant to  Rule 14a-12 under  the Exchange Act (17 CFR
    240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))


<PAGE>

ITEM 5.02. DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS;  ELECTION OF DIRECTORS;
APPOINTMENT OF PRINCIPAL OFFICERS.

(c)  On July 25, 2006,  the Board of Directors  of First  Merchants  Corporation
     (the "Corporation")  appointed Charles E. Schalliol as Vice Chairman of the
     Board of Directors.

(d)  On July 25, 2006, the Board of Directors of the Corporation  also appointed
     Terry L. Walker to fill a vacancy on the Corporation's  Board of Directors.
     Mr.  Walker's  term will  continue  until the 2007  Annual  Meeting  of the
     Shareholders,  at which time he will be  considered  for election for a two
     (2) year term. Mr. Walker will serve on the audit committee of the Board of
     Directors.  A copy of the Corporation's press release, dated July 27, 2006,
     announcing the appointment of Mr. Walker is attached hereto as Exhibit 99.

ITEM 5.03.  AMENDMENTS TO ARTICLES OF INCORPORATION OR BYLAWS;  CHANGE IN FISCAL
YEAR.

(a)  On July 25, 2006,  the Board of Directors of the  Corporation  also amended
     Section  Article V,  Section 1 of the  Corporation's  Bylaws to provide for
     twelve (12) Directors rather than the previous thirteen (13). The amendment
     was effective as of July 25, 2006.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(c)  (99.1) Press Release dated July 27, 2006.

<PAGE>

                                   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.

                                 First Merchants Corporation
                                        (Registrant)

                                 By:  /s/  Mark K. Hardwick
                                    --------------------------------------------
                                           Mark K. Hardwick
                                           Executive Vice President and
                                           Chief Financial Officer
                                           (Principal Financial and
                                           Principal Accounting Officer)


Dated:  July 27, 2006


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

Exhibit No.
-----------
    99.1                Description
                        -----------
                        Press Release, dated July 27, 2006, regarding the
                        matter referenced in Item 5.02.



<PAGE>
                          First Merchants Corporation

                                 Exhibit No. 99.1

                       Press Release, dated July 27, 2006

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

FOR IMMEDIATE RELEASE
For more information, contact:
Andrew Weixler, 765-747-1360

First Merchants Corporation Elects Terry L. Walker to its Board of Directors

July 27, 2006

Muncie, Indiana - First Merchants Corporation,  a $3.4 billion financial holding
company,  elected  Terry L.  Walker  to its  Board of  Directors  this week at a
regular  meeting.  Mr.  Walker is the Chairman,  President  and Chief  Executive
Officer of Muncie Power  Products,  Inc., a manufacturer  of power take-offs and
hydraulic systems for the truck equipment industry.

"We are very  pleased  that  Terry  has  joined  our  Board.  He has long been a
business leader in Muncie. His extensive  business  background and dedication to
the  region  make him an ideal  addition  to the  team,"  said  Michael  L. Cox,
President and Chief Executive Officer of First Merchants Corporation.

A Certified Public Accountant, Mr. Walker is a lifelong resident of East Central
Indiana  and  serves the  community  through  his work with local  organizations
including Ivy Tech, the United Way, Community Foundation, Cornerstone Center for
the Arts, and Minnetrista.  He received his undergraduate degree from Ball State
University.

Mr. Walker has received recognition for his service including induction into the
American Red Cross Hall of Fame and  selection as recipient of the "Benny" Award
for dedicated leadership and service to Ball State University.

About First Merchants Corporation

First  Merchants  Corporation  (Nasdaq:  FRME) is a  financial  holding  company
headquartered  in  Muncie,   Indiana.   Since  its  organization  in  1982,  the
Corporation  has grown to include eight  affiliate banks with 68 locations in 17
Indiana  and three  Ohio  counties,  a trust  company,  a  multi-line  insurance
company, and a title company. Bank subsidiaries of the Corporation include:

 *    First Merchants Bank in Delaware, Hamilton, and Henry counties

 *    Madison Community Bank in Madison County

 *    United Communities National Bank (UCNB) in Randolph, Union, Fayette,
      Wayne, and Butler (OH) counties

 *    First National Bank in Jay County

 *    Decatur Bank & Trust Company in Adams County

 *    Frances Slocum Bank in Wabash, Howard, and Miami counties

 *    Lafayette Bank and Trust Company in Tippecanoe, Carroll, Jasper, and White
      counties

 *    Commerce National Bank in Franklin and Hamilton counties in Ohio

The Corporation also operates First Merchants Insurance Services, a full-service
property, casualty, personal lines, and health care insurer, and is the majority
owner of the Indiana Title Insurance  Company LLC. First Merchants Trust Company
unites the trust and asset  management  services of all  affiliate  banks of the
Corporation  and represents  one of the largest trust  companies in the State of
Indiana, with assets in excess of $1.5 billion.

For more information, visit www.firstmerchants.com.


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