First Merchants Corporation and First Savings Financial Group, Inc. announced on September 25, 2025, that they have entered into a definitive merger agreement. First Savings will merge with and into First Merchants in an all-stock transaction currently valued at approximately $241.3 million. Immediately following, First Savings Bank will merge with and into First Merchants Bank.
Under the terms of the agreement, common shareholders of First Savings will receive 0.85 of a share of First Merchants common stock for each share of First Savings common stock owned, in a tax-free exchange. Based on First Merchants' closing price of $39.53 per share on September 24, 2025, the implied merger consideration for each First Savings common share is $33.60. First Merchants anticipates approximately 11% earnings per share accretion in 2027, the first full year of combined operations, with a tangible book value earnback period of 3.0 years.
This acquisition is expected to significantly strengthen First Merchants' southern Indiana deposit network and add new lending verticals, including triple net lease financing, first lien HELOCs, and SBA lending. The combined company will have approximately $21.0 billion in assets and 127 branches across Indiana, Michigan, and Ohio. The transaction is expected to close in the first quarter of 2026, subject to First Savings' shareholder approval and regulatory approvals.
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