First Merchants Corporation and First Savings Financial Group have announced plans to join forces in a $241.3 million all-stock merger that will create Indiana’s second-largest financial holding company. The transaction, unanimously approved by both boards, will see Jeffersonville-based First Savings merge into Muncie-headquartered First Merchants, with the combined entity operating under the First Merchants Bank name. The deal values First Savings at a 35% premium based on pre-announcement share prices.
Under the agreement, First Savings shareholders will receive 0.85 shares of First Merchants common stock for each First Savings share. First Merchants trades on Nasdaq under the ticker symbol FRME, while First Savings trades as FSFG.
The proposed merger will create a financial powerhouse with approximately $21 billion in combined assets and 127 banking centres spanning Indiana, Michigan, and Ohio. First Merchants currently operates 109 banking centres across the three states, while First Savings maintains 16 locations primarily in southern Indiana. Subject to regulatory approvals and First Savings shareholder consent, the transaction is expected to close in Q1 2026, with a systems integration scheduled for completion by Q2 2026.
First Merchants CEO Mark Hardwick, who will continue to lead the combined organisation, describes First Savings as “a meaningful addition to our Indiana deposit network” and says the merger “strengthens our southern Indiana growth potential”.
Hardwick reveals plans to leverage First Savings’ specialised lending capabilities across the expanded footprint, particularly focusing on triple net lease financing, first lien HELOCs, and SBA lending verticals – all of which he believes will support “steady, diversified loan growth across economic cycles”. Larry Myers, president and CEO of First Savings, is expected to join First Merchants’ board of directors through the deal.
Source: https://www.fintechfutures.com/
