Company: FRME
Filing Date: 2025-10-10
Form Type: S-4
Source: 0001193125-25-237211
Chunk: 81

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-10
Form: S-4
Chunk 81
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     | $     | 53.97 |

Piper Sandler noted that the net present value analysis is a widely used valuation methodology, but the results of such methodology are highly dependent upon the numerous assumptions that must be made, and the results thereof are not necessarily indicative of actual values or future results. Pro Forma Transaction Analysis. Piper Sandler analyzed certain potential pro forma effects of the merger on First Merchants assuming the transaction closes March 31, 2026. Piper Sandler utilized the following information and assumptions: (a) internal financial projections for First Savings for the years ending December 31, 2025 through December 31, 2029 as well as estimated dividends per share for First Savings for the years ending December 31, 2025 through December 31, 2029, as provided by the senior management of First Savings, (b) 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 55

December 31, 2029, as provided by the senior management of First Merchants, and (c) certain assumptions relating to transaction expenses, cost savings and purchase accounting
adjustments, as well as certain adjustments for CECL accounting standards, as provided by the senior management of First Merchants. The analysis indicated that the transaction could be accretive to First Merchants’ estimated earnings per share
(excluding one-time transaction costs and expenses) in the years ending December 31, 2026 through December 31, 2028 and dilutive to First Merchants’ estimated tangible book value per share at
close and in the years ending December 31, 2026 through December 31, 2027.

In connection with this analysis, Piper Sandler
considered and discussed with the First Savings’ board of directors how the analysis would be affected by changes in the underlying assumptions, including the impact of final purchase accounting adjustments determined at the closing of the
transaction, and noted that the actual results achieved by the combined company may vary from projected results and the variations may be material.