First Merchants Bank has acquired First Savings Financial Group in an all-stock transaction valued at approximately $241.3 million.
Following the closing of the deal, Jeffersonville, Indiana-based First Savings Bank will merge into Muncie, Indiana-based First Merchants Bank.
First Savings operates 16 banks in southern Indiana. It has $2.4 billion in total assets, $1.9 billion in total loans, and $1.7 billion in total deposits. The combined bank will have approximately $21.0 billion in total assets. First Merchants will remain the second largest financial holding company headquartered in Indiana. The combined company will have 127 branches across Indiana, Michigan, and Ohio.
“We view First Savings Bank as a meaningful addition to our Indiana deposit network,” Mark Hardwick, CEO of First Merchants, said. “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 merger agreement provides that the common shareholders of First Savings will have the right to receive 0.85 of a share of First Merchants stock for each share of First Savings stock owned. Based on the closing price of $39.53 per share for a share of First Merchants stock on September 24, the implied merger consideration for each share of First Savings stock is $33.60 per share.
First Merchants expects to appoint Larry Myers, the president and CEO of First Savings, to its Board of Directors.
“For nearly 90 years, First Savings Bank has combined strong performance for our shareholders with a deep commitment to our community and the development of innovative business lines. By joining with First Merchants, we are ensuring that these values endure while opening the door to exciting new opportunities for customers, employees and investors,” Myers said.
The transaction is expected to close in the first quarter of 2026, subject to First Savings’ shareholder approval, regulatory approvals, and other customary conditions. First Merchants’ shareholder approval is not required. The integration of the combined company is projected to be completed during the second quarter of 2026.
“This acquisition represents more than just growth – it’s a reaffirmation of our purpose,”
Mike Stewart, president of First Merchants, said. “We are proud to welcome a community bank that shares our deep-rooted commitment to Hoosier values by serving our communities with genuine care, dependable service and lasting trust. First Savings’ connection to its southern Indiana communities mirrors our own, and together, we will continue to empower individuals and businesses across Indiana.”