Company: FRME
Filing Date: 2025-10-17
Form Type: S-4/A
Source: 0001193125-25-242318
Chunk: 74

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-17
Form: S-4/A
Chunk 74
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 | $     | 41.70 |     | $     | 44.72 |
| 20.0%             |     | $    | 32.08 |     | $     | 35.38 |     | $     | 38.67 |     | $     | 41.97 |     | $     | 45.27 |     | $     | 48.57 |

Piper Sandler also performed an analysis that estimated the net present value per share of First Merchants common stock, assuming First Merchants performed in accordance with publicly available mean analyst estimates for First Merchants for the quarters ending September 30, 2025 and December 31, 2025 and the year ending December 31, 2026, as well as an estimated long-term annual earnings growth rate for the years ending December 31, 2027 through December 31, 2029 and estimated dividends per share for First Merchants for the quarters ending September 30, 2025 and December 31, 2025 and the years ending December 31, 2026 through December 31, 2029, as provided by the senior management of First Merchant. To approximate the terminal value of a share of First Merchants common stock at September 19, 2025, Piper Sandler applied price to 2029 earnings multiples ranging from 8.0x to 13.0x and multiples of 2029 tangible book value ranging from 125% to 200%. The terminal values were then discounted to present values using different discount rates ranging from 8.0% to 13.0%, which were chosen to reflect different assumptions regarding required rates of return of holders or prospective buyers of First Merchants common stock. As illustrated in the following tables, the analysis indicated an imputed range of values per share of First Merchants common stock of $28.54 to $50.53 when applying multiples of earnings and $36.56 to $64.96 when applying multiples of tangible book value. 54

Earnings Per Share Multiples

| Discount Rate |     | 8.0x |       |     | 9.0x |       |     | 10.0x |       |     | 11.0x |       |     | 12.0x |       |     | 13.0x |       |
|:--------------|:----|:-----|------:|:----|:-----|------