10.31.2025  –  A Letter to Our Clients

Dear valued customers:

We’re pleased to share that First Savings Bank intends to join First Merchants Bank — a value-driven organization known for its deep commitment to community banking and financial wellness. This partnership reflects our shared dedication to serving Indiana communities with care, integrity, and purpose.

The boards of First Merchants Corporation and First Savings Financial Group, Inc. have approved an agreement to merge our companies. Pending regulatory and shareholder approvals, the combined bank will have approximately $21 billion in assets and 127 banking centers throughout Indiana, Michigan, and Ohio, enhancing our ability to deliver expanded capabilities and improved services to meet your financial needs.

Together, we’ll offer a broader range of banking solutions, including wealth management and private banking, enhanced digital banking tools, and higher commercial lending limits while continuing to provide the personalized service you expect.

For more than 130 years, First Merchants has earned a reputation for trusted financial guidance and community impact. Recognized by Time Magazine as one of America’s Best Companies and by S&P Global as a Top 50 Public Bank, they bring strength, stability, and a customer-first approach that aligns with our own.

We chose to partner with First Merchants because of who they are: a purpose-driven organization that shares our values and commitment to building lasting relationships. While we’re joining a larger organization, the familiar faces you rely on will remain the same, and our dedication to you and our community will only grow stronger.

As we begin this next chapter, our priority is ensuring a smooth, seamless transition. You’ll continue to receive timely updates and support every step of the way. If you have any questions, please don’t hesitate to reach out to your local banker.

Thank you for being a valued customer. We’re honored to be part of your story and proud to serve this great community — now with even greater resources to support your financial journey.

Sincerely,

Larry Myers
President & CEO
First Savings Bank

9.25.2025  –  Press Release Announcing Merger

MUNCIE, IN. and JEFFERSONVILLE, IN, September 25, 2025 — First Merchants Corporation (Nasdaq: FRME) (“First Merchants”) and First Savings Financial Group, Inc., (Nasdaq: FSFG) (“First Savings”) today announced they have entered into a definitive merger agreement pursuant to which First Savings will merge with and into First Merchants in an all-stock transaction currently valued at approximately $241.3 million. Immediately following the merger, First Savings Bank will merge with and into First Merchants Bank.

Headquartered in Jeffersonville, Indiana, First Savings operates 16 banking center locations in southern Indiana. First Savings has total assets of $2.4 billion, total loans of $1.9 billion, and total deposits of $1.7 billion earning a 1.02% return on average assets (annualized) and a 13.7% return on average equity (annualized) for the quarter ended June 30, 2025.

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 common stock, in a tax-free exchange, for each share of First Savings common stock owned. Based on the closing price of First Merchants common stock on September 24, 2025 of $39.53 per share, the implied merger consideration for each share of First Savings common stock is $33.60 per share. First Merchants anticipates earnings per share accretion of approximately 11% in 2027 (the first full year of combined operations) and a tangible book value earnback period of 3.0 years.

“We view First Savings Bank as a meaningful addition to our Indiana deposit network,” said Mark Hardwick, CEO of First Merchants. “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 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 combined company, conducting its banking business as First Merchants Bank, expects to complete its system integration during the second quarter of 2026.

First Merchants and First Savings will have combined assets of approximately $21.0 billion and 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.

First Merchants expects to appoint Larry W. Myers, President and Chief Executive Officer and a Director of First Savings, to its Board of Directors in connection with the merger.

Mr. Myers stated, “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.”

According to Mike Stewart, President of First Merchants, “This acquisition represents more than just growth – it’s a reaffirmation of our purpose. 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.”

Stephens Inc. is serving as financial advisor to First Merchants, and Dentons is serving as legal advisor. Piper Sandler & Co. is serving as financial advisor to First Savings and Luse Gorman, PC is serving as legal advisor.