Company: FRME
Filing Date: 2025-10-17
Form Type: S-4/A
Source: 0001193125-25-242318
Chunk: 104

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-17
Form: S-4/A
Chunk 104
---
). Short-term capital gains of an individual generally are subject to a current maximum U.S. federal income tax rate of 37% (not including the additional Section 1411 tax). The deductibility of capital losses is subject to limitations. In addition, the holding period of the First Merchants common stock received generally will include the holding period of First Savings common stock surrendered in the exchange. If a U.S. Holder acquired different blocks of First Savings common stock at different times or different prices, such U.S. Holder should consult its tax advisor regarding the manner in which gain or loss should be determined. Information Reporting and Backup Withholding Cash payments received in the Merger by a U.S. Holder may, under certain circumstances, be subject to information reporting and backup withholding, unless the U.S. Holder provides proof of an applicable exemption, furnishes its taxpayer identification number (in the case of individuals, their social security number) and otherwise complies with all applicable requirements of the backup withholding rules. Any amounts withheld from payments to a U.S. Holder under the backup withholding rules are not an additional tax and will be allowed as a refund or credit against the U.S. Holder’s U.S. federal income tax liability, provided the required information is timely furnished to the IRS. Reporting Requirements U.S. Holders who are “significant holders” and receive First Merchants common stock in exchange for First Savings common stock are required to file a statement with their U.S. federal income tax return setting forth certain information, including, but not limited to, their tax basis (determined immediately before the Merger) in the First Savings common stock exchanged in the Merger and the fair market value (determined immediately before the Merger) of the First Savings common stock exchanged in the Merger. A “significant holder” is a holder of First Savings common stock who immediately before the Merger (i) owned at least 5% of the total outstanding stock of First Savings by vote or by value or (ii) owned stock of First Savings with a tax basis of at least $1 million. All First Savings shareholders will be required to retain permanent tax records of the tax basis of First Savings common stock exchanged and the First Merchants common stock and cash received in the Merger. 75

This discussion is of a general nature only, is not exhaustive, and is not intended to be, nor should it be construed to be, legal or tax advice to any particular shareholder. Because of the complexity of the tax law and because of the unique tax consequences