U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
1. Name and Address of Reporting Person
MONTGOMERY, TED J
305 E UNION STREET
LIBERTY, IN 47353-1212
2. Date of Event Requiring Statement (Month/Day/Year)
AUGUST 13, 1996
3. IRS or Social Security Number of Reporting Person (Voluntary)
###-##-####
4. Issuer Name and Ticker or Trading Symbol
FIRST MERCHANTS CORPORATION
FRME
5. Relationship of Reporting Person to Issuer (Check all applicable)
(X) Director ( ) 10% Owner (X) Officer (give title below) ( ) Other
(specify below)
SENIOR VICE PRESIDENT
6. If Amendment, Date of Original (Month/Day/Year)
<TABLE>
<CAPTION>
___________________________________________________________________________________________________________________________________
Table I -- Non-Derivative Securities Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1. Title of Security |2. Amount of |3. Ownership |4. Nature of Indirect |
| Securities | Form: | Beneficial Ownership |
| Beneficially | Direct(D) or | |
| Owned | Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C>
COMMON STOCK |10,303 |D |Individually |
- -----------------------------------------------------------------------------------------------------------------------------------|
|4,276 |D |Joint With Spouse |
- -----------------------------------------------------------------------------------------------------------------------------------|
|11,435 |I |*Employee Stock Ownership Plan |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
<CAPTION>
___________________________________________________________________________________________________________________________________
Table II -- Derivative Securitites Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1.Title of Derivative |2.Date Exer- |3.Title and Amount | |4. Conver-|5. Owner- |6. Nature of Indirect |
Security | cisable and | of Underlying | |sion or |ship: | Beneficial Ownership |
| Expiration | Securities | |exercise |Form of | |
| Date(Month/ |-----------------------|---------|price of |Deriv- | |
| Day/Year) | |Amount |deri- |ative | |
| Date | Expira- | |or |vative |Security: | |
| Exer- | tion | Title |Number of|Security |Direct(D) or | |
| cisable | Date | |Shares | |Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C>
Employee Stock Option (R|02-13-97 |08-13-06 |Common |**4,500 |24.25 |D | |
ight to Buy) | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
*Shares owned by reporting person in Union County National Bank Employee's
Stock Ownership and 401(k) Plan.
Union National Bancorp acquired by First Merchants Corporation August 1,
1996.
**2,500
NQSOs
2,000
ISOs
SIGNATURE OF REPORTING PERSON
Ted J. Montgomery (Confirming Statement on File)
DATE
August 14, 1996
