First Merchants Corp to Acquire First Savings Financial Group in $33.60 Per Share Merger

First Merchants Corp to Acquire First Savings Financial Group in $33.60 Per Share Merger

By USFM•October 11, 2025

First Merchants Corporation has announced a definitive merger agreement to acquire First Savings Financial Group, Inc. Under the terms of the deal, each share of First Savings will convert into 0.85 shares of First Merchants, valuing First Savings at approximately $33.60 per share based on recent stock prices.

In a strategic move to expand its footprint and enhance its capabilities, First Merchants Corporation (NASDAQ: FRME) has entered into a definitive Agreement and Plan of Merger with First Savings Financial Group, Inc. (NASDAQ: FSFG), approved by both Boards of Directors on September 24, 2025. The merger will combine First Savings with and into First Merchants, creating a larger entity with approximately $21.1 billion in assets, $15.2 billion in loans, $16.5 billion in deposits, and total shareholders’ equity of $2.6 billion, based on data as of June 30, 2025.

Under the merger agreement, shareholders of First Savings will receive 0.85 shares of First Merchants common stock for each share they own, along with cash for any fractional shares. The implied value of this exchange, based on First Merchants' closing stock price of $39.53 on September 24, 2025, amounts to approximately $33.60 per share of First Savings common stock. The transaction is strategically positioned to create a robust banking operation across Indiana, Ohio, and Michigan, leveraging the combined resources and branch locations of both companies to enhance service offerings and operational efficiencies.

The merger is subject to the approval of First Savings’ shareholders, who will vote on the proposal at a special meeting, the date of which is yet to be determined. Approval requires a majority of the outstanding shares of First Savings common stock. The merger is also intended to qualify as a reorganization under Section 368(a) of the Internal Revenue Code, allowing First Savings shareholders to defer recognition of gains or losses, except for cash received for fractional shares or stock options.

In terms of market impact, the merger is expected to benefit shareholders through enhanced operational scale and improved financial performance. However, it also introduces regulatory considerations, as the deal must receive necessary approvals from relevant regulatory bodies. The Boards of Directors of both companies express strong support for the merger, emphasizing the strategic advantages and long-term growth potential.

As the process unfolds, shareholders are encouraged to stay informed and participate in the upcoming vote, which is critical for the completion of this transformative merger.