Dentons-advised First Merchants Corp. and First Savings Financial Group Inc., represented by Luse Gorman PC, announced Thursday a headline-making merger valued at approximately $241 million, a deal set to reshape Indiana’s banking landscape.

Under the agreement, each First Savings shareholder will receive 0.85 shares of First Merchants common stock for every First Savings share they hold. Based on Wednesday’s closing price of First Merchants stock, that exchange equals $33.60 per share, according to the joint statement.

Expanding Footprints and Influence

The transaction will see Jeffersonville-based First Savings fold into First Merchants, further strengthening First Merchants’ dominance across Indiana.

“We view First Savings Bank as a meaningful addition to our Indiana deposit network,” said Mark Hardwick, First Merchants CEO. “Its presence strengthens our southern Indiana growth potential. We are also excited about the opportunities the triple net lease financing, home equity lines, and SBA lending verticals will offer by supporting steady, diversified loan growth across economic cycles.”

First Savings brings $2.4 billion in total assets, $1.9 billion in loans, and $1.7 billion in deposits. With 16 branches in southern Indiana, the bank adds critical scale to First Merchants’ network.

Building a $21B Banking Giant

The combined institution will boast assets of roughly $21 billion, positioning First Merchants as the second-largest financial holding company headquartered in Indiana. Operating under the First Merchants Bank name, the merged company will span 127 branches across Indiana, Michigan, and Ohio.

System integration is slated for completion by the second quarter of 2026, the companies said.

A Legacy of Nearly 90 Years

“For nearly 90 years, First Savings Bank has delivered strong returns for shareholders while staying deeply committed to our communities,” said Larry Myers, First Savings president and CEO. “By joining with First Merchants, we are ensuring those values endure while opening the door to exciting new opportunities for customers, employees, and investors.”

As part of the agreement, Myers will be appointed to the First Merchants board of directors.

Road Ahead: Approvals and Closing

The deal is expected to close in the first quarter of 2026, pending approval from shareholders of First Savings, regulatory clearance, and customary closing conditions.

Full details of the legal counsel advising both sides were not immediately available Thursday.