Company: FRME
Filing Date: 2025-09-25
Form Type: 425
Source: 0001193125-25-216443
Chunk: 121

Company: FIRST MERCHANTS CORP
Filing Date: 2025-09-25
Form: 425
Chunk 121
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4Family Loans. Note: Loan and deposit compositions reflect bank-level regulatory data as of June 30, 2025; Yield and cost figures represent GAAP data as of June 30, 2025. 11

Summary Financial Impact & Assumptions 11% EPS accretion for last 9 months of 2026 (with fully-phased cost savings) 4.8% TBV dilution at closing, inclusive of all transaction expenses, with an earnback of 3 years using the crossover method1 Tangible common equity / tangible assets of ~8.7% estimated at closing Financial Impact CET1 capital ratio of ~10.9% estimated at closing Total risk-based capital ratio of ~12.6% estimated at closing CRE Construction estimated 2 ~42% / 100% at closing CRE Total estimated 2 ~184% / 300% at closing 27.5% of FSFG’s noninterest expense Estimated Cost Savings 67% phased-induring the last 9 months of 2026 and 100% thereafter 1.29%, or $25.1 million, ACL established on portfolio ($9.8 million PCD and $15.2 million non-PCD)Loan Credit Mark Assumes early adoption of FASB’s new standard for purchased financial assets, resulting in no accretable credit mark Loan interest rate mark of $78.5 million, or 4.0% of FSFG’s gross loans, accreted over 4 years using the straight-line method Interest Rate Marks Total net fair value discount on liabilities of $0.1 million, including Time Deposits, FHLB Advances and Subordinated Debt $24.5 million after-taxmerger charges Transaction Expenses Fully reflected in TBV dilution at closing Core deposit intangible of 2.5%, amortized over 10 years using the sum of the years’ digits method $2.1 million net reversal of deferred fees Other Assumptions FSFG securities portfolio is sold and reinvested into higher yielding assets at close ~$0.8 million annual after-taxreduction in noninterest income related to Durbin interchange impact 1Based on when pro forma tangible book value per share crosses over and begins to exceed projected standalone FRME tangible book value per share. Inclusive of all transaction costs. 2Measures loans as a percentage of the Bank’s total regulatory capital which is used by regulators to assess CRE exposure 12

Summary Leading Midwest franchise headquartered in Indiana of over $20