Form 4: FSFG Executive Sells Shares Post-Merger

Derrick B. Jackson, Chief of Credit Administration, reported the disposal of all First Savings Financial Group shares and options following its merger with First Merchants Corporation.

Summary

• Derrick B. Jackson, Chief of Credit Admin of Sub at First Savings Financial Group, Inc. (FSFG), reported the disposal of all his beneficial ownership in FSFG securities.
• This transaction occurred on February 1, 2026, as a result of the Agreement and Plan of Merger between FSFG and First Merchants Corporation, dated September 24, 2025.
• Jackson disposed of 25,237 shares of FSFG Common Stock held directly and 5,057 shares held indirectly through a 401(k) plan.
• Each outstanding FSFG common stock was converted into the right to receive 0.85 shares of First Merchants Corporation common stock, with cash in lieu of fractional shares.
• Additionally, Jackson disposed of 3,191 stock options with an exercise price of $26.72 and 960 stock options with an exercise price of $29.00.
• These stock options were canceled in the merger in exchange for a cash payment based on the difference between the per share cash equivalent consideration of $32.5876 and the respective exercise prices, less tax withholdings.
• Following these transactions, Jackson holds 0 shares and 0 derivative securities in FSFG.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a neutral to slightly positive event for the reporting person, as it confirms the successful completion of a merger and the monetization of equity holdings and options at a favorable price relative to exercise costs. For the company, it signifies the finalization of its acquisition.

Positives

• The merger provided a clear exit strategy for FSFG shareholders, including executives, converting FSFG shares into First Merchants Corporation stock or cash.
• Stock options were cashed out at a premium, with the per share cash equivalent consideration of $32.5876 exceeding both exercise prices ($26.72 and $29.00).

Negatives

• The reporting person no longer holds any beneficial ownership in First Savings Financial Group, Inc., indicating the completion of the company's acquisition.

Future Outlook

The filing does not contain forward-looking statements regarding the company's future operations, as it primarily reports a completed insider transaction related to a merger.

Industry Context

StockSavvy.ai notes that this Form 4 filing reflects the final stages of the acquisition of First Savings Financial Group by First Merchants Corporation, a common occurrence in the banking sector as smaller regional banks are often acquired by larger institutions seeking to expand market share and achieve economies of scale. Such mergers typically lead to the delisting of the acquired entity and the conversion of its securities into those of the acquiring company or cash.

Comparison to Industry Standards

• The conversion ratio of 0.85 shares of First Merchants Corporation common stock per FSFG share is a specific merger term. Without the full merger agreement or market data for comparable bank acquisitions at the time, a direct assessment against global benchmarks is not feasible from this Form 4 alone.
• The cash-out of stock options at a premium to their exercise price (e.g., $32.5876 consideration vs. $26.72 and $29.00 exercise prices) is standard practice in mergers where options are not rolled over into the acquiring company's equity.

Stakeholder Impact

• Shareholders (FSFG): Received 0.85 shares of First Merchants Corporation common stock for each FSFG share, or cash for fractional shares, indicating the successful completion of the acquisition.
• Employees (FSFG): The reporting person, an officer, monetized their equity holdings and options as part of the merger, which is a common outcome for employees with equity in an acquired company.

Key Dates

Keywords

First Savings Financial Group, FSFG, First Merchants Corporation, Merger, Acquisition, Form 4, Insider Trading, Beneficial Ownership, Stock Options, Derrick B. Jackson, Financial Services, Banking