TIMELINE OF FIRST FINANCIAL BANK ACQUISITIONS
First Financial Bancorp, with $7.2 billion in assets, is the fifth largest bank by deposits held in the Cincinnati metropolitan, and ninth largest in the Dayton metro, according to the Federal Deposit Insurance Corp. The bank’s footprint covers Indiana, Kentucky and Ohio. Here’s a look at its recent acquisition history.
2009: Completed Federal Deposit Insurance Corp.-assisted acquisitions of Peoples Community Bank, Irwin Union Bank and Trust Co., and Irwin Union Bank F.S.B., significantly increasing its presence in greater Cincinnati and southern Indiana. Those purchases doubled First Financial's assets from approximately $3 billion in 2008 to more than $6 billion by 2010.
2011: Completed acquisition of Liberty Savings Bank branches in the Dayton area, increasing its presence in the Dayton market. Also completed acquisition of Flagstar Bank branches in Indiana, significantly bolstering its presence in the Indianapolis market.
2014: First Financial closed merger deals last year on three Central Ohio banks, through which it entered the Columbus market: Guernsey Bancorp, Insight Bank and First Bexley Bank.
2015: Cincinnati-based First Financial announced July 23 plans to acquire national specialty commercial lender Oak Street Holdings Corp. for approximately $110 million. Company leaders say the deal provides a more diversified product lineup.
The biggest difference between First Financial Bank’s newest acquisition plans and its past ones is this time, it’s not buying a bank with a network of branch offices.
Cincinnati-based First Financial has reached a $110 million deal to acquire nationally-recognized commercial lender Oak Street Holdings Corp. The announcement was made Thursday.
Oak Street, based in Indianapolis, Ind., provides funding, lending, and servicing to insurance agents and brokers using commission earnings as collateral.
“It really is a product diversification strategy for us more than anything,” said Tony Stollings, president and chief operating officer of First Financial.
Last year, First Financial broke into the Central Ohio market when it completed the purchase of three Columbus-area banks. Prior to that, First Financial doubled its assets when it completed in 2009 the Federal Deposit Insurance Corp.-assisted acquisitions of Peoples Community Bank, Irwin Union Bank and Trust Co., and Irwin Union Bank F.S.B. The Irwin Union deals also gave First Financial a national franchise lending business.
This newest merger with Oak Street, expected to be completed by the end of the year, will give First Financial a second national lending platform, Stollings said. Once finalized, Oak Street will become a subsidiary of First Financial and will keep its name, current staffing and leadership.
“Revenue growth has been extremely difficult in this low rate environment,” Stollings said, referring to the whole banking industry. “This is an opportunity to add to our product set. It’s an area where we’re not actively in now. So it’s additive to all of our numbers and it provides us one more product we can sell in the national marketplace.”
First Financial is projecting that in the first full year of operation with Oak Street, it will generate additional operating earnings of 16 to 20 cents per share.
The bank reported 2014 profits of $65 million, up from $43.8 million the year before. Loan growth fell short of expectations in the first quarter of this year, ending March 31, but profits still grew year-over-year by about $2.5 million.
“We’re a Midwest company,” Stollings said.
And the fact Oak Street’s headquarters are located within First Financial’s existing three-state footprint played a big role in the purchase, he said.
“We’re very selective in how we allocate our resources and our time relative to (mergers and acquisitions). Our number one priority has been and always will be solid organic growth in our footprint,” he said.
“There are a lot more opportunities out there than we ever would have interest in.”
Earnings for the April through June quarter will be released after the market closes next Thursday, July 30, and a conference call to discuss results and Oak Street will be held at 8:30 a.m. Friday morning.
Currently, First Financial is $7.2 billion in assets and operates 106 full-service bank branches in Ohio, Kentucky and Indiana.
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