Company: FRME
Filing Date: 2025-09-25
Form Type: 425
Source: 0001193125-25-216443
Chunk: 116

Company: FIRST MERCHANTS CORP
Filing Date: 2025-09-25
Form: 425
Chunk 116
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 in aggregate1 Transaction Value 1 $33.89 per share 1.36x of tangible book value Transaction Multiples1 8.7x 2026E earnings2 6.2x 2026E earnings2 + fully phased cost savings Pro Forma Ownership Approximately 91% FRME / 9% FSFG Larry Myers – President, CEO and Director of FSFG – will join the FRME corporate board post- Board Representation closing, subject to FRME’s corporate governance procedures FSFG shareholder approval and customary regulatory approvals Approvals & Closing Expected closing in Q1’26 Systems integration scheduled for Q2’26 1Based upon a FRME closing stock price of $39.87 as of September 24, 2025. Aggregate deal value is inclusive of options consideration (FSFG unexercised options to receive cash). 2Based on $27.1 million of estimated FSFG earnings for CY 2026E. 6

Transaction Highlights Combination creates a $20B+ asset bank ranked 4th in deposit market share in Indiana and with a statewide footprint Strategically Expands FRME into Southern Indiana (four of FSFG’s counties of operation are part of the Compelling Louisville MSA which is comprised of markets in both Indiana and Kentucky) Enables FSFG’s asset generating businesses room to grow on a larger, more liquid balance sheet Lack of market overlap expected to preserve customer-facing jobs Longer term, positions FRME to capitalize on commercial banking opportunities in the Louisville MSA Operational Fit FRME finds FSFG’s specialty businesses attractive and intends to continue to invest in those products FRME is an experienced acquirer who conducted a comprehensive due diligence process to thoroughly evaluate the proposed transaction Attractive earnings accretion for both FRME and FSFG Shareholders Financially Manageable TBV dilution at closing, inclusive of all transaction expenses, with an estimated Attractive earnback of 3.0 years using the crossover method1 Accretive to key FRME profitability metrics in the first year of combined operations 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. 7

Expansion into Southern Indiana Bolsters Indiana State Presence Pro Forma Indiana Deposit Market Share FSFG Southern Indiana Deposit Market Share Deposits Mkt. Share Deposits Mkt. Share Rank Institution (ST) Branches ($000) (%) Rank Institution (ST) Branches ($000) (%) 1 JPM