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10h ago

First Merchants to Acquire First Savings for $241 Million, Expanding Into Louisville

The stock deal adds SBA lending capacity, with closing targeted for early 2026.

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Overview

  • The combination would form a roughly $21 billion institution with 127 branches, $15.3 billion of loans and $16.6 billion of deposits.
  • The companies target a first-quarter 2026 close pending approvals, with First Merchants projecting 11% earnings accretion in late 2026 and cost savings equal to 27.5% of First Savings’ operating expenses.
  • First Savings brings a $2.4 billion balance sheet and a Louisville footprint that includes 12 of its 16 branches and a 3% share of the metro’s $45 billion deposit market.
  • SBA 7(a) capacity would rise materially as First Savings closed $111 million in fiscal 2025 versus just under $8 million at First Merchants.
  • First Savings CEO Larry Myers is expected to join First Merchants’ board at closing, analysts praised the strategic fit, and First Merchants’ shares traded down about 1.3% midday after the announcement.