This wasn't explained clearly, but I think he gets +1+4 = +5 HP (the first merge erases the bane) and +1 Atk.
"For heroes with an Asset and a Flaw: In addition to two stats increasing (so you have at least +1 HP and +1 Atk), their Flaw stat will also increase (and because only the first merge changes, it has to totally nullify the bane, as it will not be done on subsequent merges. Therefore +4 HP)"
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