Indiana’s First Merchants Corporation to acquire in-state bank for $241 million

Muncie, Ind.-based First Merchants Corporation is acquiring Jeffersonville, Ind.-based First Savings Financial Group in a $241.3 million, all-stock deal..The deal is expected to close in the first quarter of 2026. The combined company will have approximately $21 billion in assets and 127 branches across Indiana, Michigan, and Ohio, strengthening First Merchants’ position as the state’s second-largest financial holding company. The $2.4 billion First Savings Financial Group, holding company of First Savings Bank, is headquartered near the Kentucky border. The company operates 16 branches and has $1.9 billion in loans along with $1.7 billion in deposits. The $18.2 billion First Merchants Corporation is the holding company of First Merchants Bank. First Merchants anticipates the deal will deliver 11 percent earnings per share accretion in 2027, the first full year of combined operations, with a tangible book value earnback period of three years.As part of the merger, First Savings President and CEO Larry Myers will join the First Merchants board of directors.The acquisition strengthens First Merchants’ standing in southern Indiana and complements its loan diversification strategy, said CEO Mark Hardwick. “We view First Savings Bank as a meaningful addition to our Indiana deposit network,” he added. “Its presence strengthens our southern Indiana growth potential.”Little Rock-based Stephens Inc. is financial adviser to First Merchants, while global law firm Dentons is legal adviser. Minneapolis-based Piper Sandler & Co. is financial adviser to First Savings, while Washington, D.C.-based law firm Luse Gorman PC is legal advisor.