First Merchants Corporation (FRME) entered a merger agreement on September 25, 2025, to acquire First Savings Financial Group, Inc. (FSFG) in an all-stock deal valued at $797.22 million.
The common shareholders of First Savings will have the right to receive 0.85 of a share of First Merchants common stock for each share of First Savings common stock owned.
The implied merger consideration for each share of First Savings common stock is $33.60 per share, representing a premium of 21.39% over the stock’s last close.
First Savings is a Jeffersonville, Indiana-based bank holding company with 16 branches, offering consumer and business banking, SBA and mortgage lending, insurance services, and investment activities. The company has $2.4 billion in assets and $1.7 billion in deposits.
First Merchants is a Muncie, Indiana–based financial holding company offering community banking, lending, wealth management, and corporate services through 109 branches across Indiana, Illinois, Ohio, and Michigan, as well as digital channels. The company has $18.6 billion in total assets and $14.6 billion in deposits.
The deal is expected to close in the first quarter of 2026.
Following the merger, First Merchants and First Savings will have combined assets of approximately $21 billion. First Merchants will remain the second-largest financial holding company headquartered in Indiana, with a network of 127 branches across Indiana, Michigan, and Ohio.
First Merchants plans to add Larry Myers, CEO of First Savings, to its Board of Directors.
First Savings was advised by Piper Sandler as financial advisor and Luse Gorman as legal counsel, while First Merchants received financial advice from Stephens and legal counsel from Dentons.
First Merchants is paying 1.29 times the tangible book value for First Savings.
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Editor’s Note: Baranjot Kaur contributed to this article