First Merchants to Acquire First Savings in $241M All-Stock Deal
First Merchants Corporation and First Savings Financial Group, Inc. have agreed to merge in an all-stock transaction valued at approximately $241.3 million. The deal will expand First Merchants’ Indiana footprint while adding new lending verticals and deposit strength.
Jeffersonville-based First Savings operates 16 banking centers across southern Indiana with $2.4 billion in assets, $1.9 billion in loans, and $1.7 billion in deposits. Under the terms, First Savings shareholders will receive 0.85 shares of First Merchants common stock for each First Savings share, implying merger consideration of $33.60 per share based on First Merchants’ September 24, 2025, closing price of $39.53.
“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 and will not require First Merchants shareholder approval. The combined institution will operate as First Merchants Bank with approximately $21 billion in assets and 127 branches across Indiana, Michigan, and Ohio. System integration is planned for completion by the second quarter of 2026.
As part of the merger, Larry W. Myers, President and CEO of First Savings, will join the First Merchants Board of Directors.
Advisors on the transaction include Stephens Inc. for First Merchants and Piper Sandler & Co. for First Savings. Legal counsel is being provided by Dentons for First Merchants and Luse Gorman, PC for First Savings.