09:28 AM EDT, 09/25/2025 (MT Newswires) -- First Merchants ( FRME ) and First Savings Financial Group ( FSFG ) said Thursday they have signed a definitive merger agreement under which First Savings will merge with and into First Merchants ( FRME ) in an all-stock transaction valued at about $241.3 million.

Under the terms of the deal, First Savings shareholders will receive 0.85 common share of First Merchants ( FRME ) for each First Savings common share, the companies said, adding that the transaction implies a value of $33.60 for each First Savings share based on First Merchants' ( FRME ) Sept. 24 closing price of $39.53.

Following the merger, expected to close in Q1 of 2026, First Savings Bank will merge with and into First Merchants Bank, with system integration likely to be completed in Q2 of 2026, the companies said.

First Merchants ( FRME ) anticipates about 11% earnings accretion in 2027 and a tangible book value earnback period of three years, according to a joint statement.

First Savings shares were up more than 15% in recent Thursday premarket activity, while First Merchants ( FRME ) shares were down 0.1%.