Business
First Merchants Corporation and First Savings Financial Group, Inc. Announce Signing of Definitive Merger Agreement
MUNCIE, Ind. and JEFFERSONVILLE, Ind., Sept. 25, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (Nasdaq: FRME) (“First Merchants”) and First Savings
About this update from First Merchants Corporation
[{"type":"text","content":"MUNCIE, Ind. and JEFFERSONVILLE, Ind., Sept. 25, 2025 (GLOBE NEWSWIRE) -- First Merchants Corporation (Nasdaq: FRME) (“First Merchants”) and First Savings Financial Group, Inc., (Nasdaq: FSFG) (“First Savings”) today announced they have entered into a definitive merger agreement pursuant to which First Savings will merge with and into First Merchants in an all-stock transaction currently valued at approximately $241.3 million. Immediately following the merger, First Savings Bank will merge with and into First Merchants Bank. Headquartered in Jeffersonville, Indiana, First Savings operates 16 banking center locations in southern Indiana. First Savings has total assets of $2.4 billion, total loans of $1.9 billion, and total deposits of $1.7 billion earning a 1.02% return on average assets (annualized) and a 13.7% return on average equity (annualized) for the quarter ended June 30, 2025. The merger agreement provides that the common shareholders of First Savings will have the right to receive 0.85 of a share of First Merchants common stock, in a tax-free exchange, for each share of First Savings common stock owned. Based on the closing price of First Merchants common stock on September 24, 2025 of $39.53 per share, the implied merger consideration for each share of First Savings common stock is $33.60 per share. First Merchants anticipates earnings per share accretion of approximately 11% in 2027 (the first full year of combined operations) and a tangible book value earnback period of 3.0 years. “We view First Savings Bank as a meaningful addition to our Indiana deposit network,” said Mark Hardwick, CEO of First Merchants. “Its presence strengthens our southern Indiana growth potential. We are also excited about the opportunities the triple net lease financing, first lien HELOCs and SBA lending verticals will offer by supporting steady, diversified loan growth across economic cycles.” The transaction is expected to close in the first quarter of 2026, subject to First Savings’ shareholder approval, regulatory approvals, and other customary conditions. First Merchants’ shareholder approval is not required. The combined company, conducting its banking business as First Merchants Bank, expects to complete its system integration during the second quarter of 2026. First Merchants and First Savings will have combined assets of approximate...