Company: FRME
Filing Date: 2025-10-17
Form Type: S-4/A
Source: 0001193125-25-242318
Chunk: 71

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-17
Form: S-4/A
Chunk 71
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 fairness of the Exchange Ratio. Summary of Proposed Merger Consideration and Implied Transaction Metrics. Piper Sandler reviewed the financial terms of the proposed Merger. Pursuant to the terms of the merger agreement, at the effective time of the merger each share of First Savings common stock issued and outstanding immediately prior to the effective time of the transaction, except for certain shares as set forth in the merger agreement, shall be converted into the right to receive 0.85 of a share of First Merchants common stock. Piper Sandler calculated an aggregate implied transaction value of approximately $245.4 million and an implied purchase price per share of $34.26 consisting of the implied value of 6,976,558 shares of First Savings common stock and 431,155 stock options with a weighted average exercise price of $19.48 and based on the closing price of First Merchants common stock on September 19, 2025. Based upon financial information for First Savings as of or for the last twelve months (“LTM”) ended June 30, 2025 and the closing price of First Savings’ common stock on September 19, 2025, Piper Sandler calculated the following implied transaction metrics:

| Transaction Price / LTM GAAP Earning Per Share          |     | 11.1x |
| Transaction Price / Estimated 2025E Earnings Per Share¹ |     | 10.3x |

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| Market Premium to First Savings as of September 19, 2025 |     | 24.9 | % |
|:---------------------------------------------------------|:----|-----:|:--|
| Transaction Price / Tangible Book Value Per Share        |     |  138 | % |
| Tangible Book Premium / Core Deposits (CDs > $100K)      |     |  4.6 | % |
| Tangible Book Premium / Core Deposits (CDs > $250K)      |     |  4.4 | % |

| (1) | As provided by First Savings senior management/based on publicly available median analyst EPS estimates. |

Stock Trading History. Piper Sandler reviewed the publicly available historical reported trading prices of First Savings common stock and First Merchants common stock for the one-yearand three-year periods ended September 19, 2025. Piper Sandler then compared the relationship between the movements in the price of First Savings common stock and First Merchants common stock, respectively, to movements in their respective peer groups (as described below