First Financial Bancorp To Purchase Branches, Loans From Irwin Union Bank

Published: 02-Jul-2009

In continuation of First Financial’s plan to extend its reach into central and southeastern Indiana

First Financial Bank, a wholly-owned subsidiary of First Financial Bancorp, has entered into branch purchase and loan purchase agreements with Irwin Union Bank and Trust Company, the subsidiary bank of Irwin Financial Corporation.

As per the Loan Purchase Agreement, approximately $150 million in performing loans is expected to be purchased from the following Indiana markets: Avon, Carmel, Columbus, Franklin, Greensburg, Indianapolis and Shelbyville. These loans provide relationship opportunities with clients, with whom recently hired First Financial loan officers in the company's South Central Indiana market are already familiar. Under Branch Purchase Agreement, three banking centers with deposits of approximately $143 million and an additional $50 million in select performing commercial and consumer loans will be purchased.

Claude Davis, President and CEO of First Financial Bancorp, said: “The purchase of these three banking centers from Irwin is consistent with our growth plan of expanding our presence in strategic locations in both existing and adjacent markets.”

With regard to both the transactions, the loans and deposits are being purchased and assumed without premium. First Financial anticipates the combined transactions to be accretive to earnings in 2010, the first full year of integration. The acquired Irwin banking centers will operate under the First Financial Bank name immediately after the transaction closes. First Financial expects to offer positions to most Irwin associates of the banking centers being acquired.

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