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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCincinnati-based First Financial Bancorp is expanding its Indianapolis-area presence by buying three bank branches and $200 million in loans from troubled Irwin Financial Corp. in Columbus.
First Financial, the parent of First Financial Bank, said yesterday it is buying branches in Carmel, Greensburg and Shelbyville. The acquisition includes about $143 million in deposits and $50 million in commercial and consumer loans. The deal is expected to close in the third quarter.
In a separate transaction that closed Tuesday, First Financial bought $150 million in commercial loans from Irwin branches in Avon, Carmel, Columbus, Franklin, Greensburg, Indianapolis and Shelbyville.
Terms of both deals were undisclosed.
The transactions continue First Financial’s plan to extend its reach into central and southeastern Indiana. The company plans to build a banking center in Columbus later this year, Claude Davis, First Financial’s president and CEO, said in a prepared statement.
First Financial entered the Indianapolis market in August with its opening of a commercial lending office. It expects the Carmel location to accelerate its presence in the metropolitan area.
“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,” Davis said.
The Irwin branch acquisitions, plus the purchase of four bank branches from Peoples Community Bank that is expected to close this month, will give First Financial 36 bank branches in 27 communities in Indiana.
First Financial has about $3.8 billion in assets and 82 banking centers in 53 communities.
For Irwin Financial, parent of Irwin Union Bank, the sales are part of a restructuring plan that focuses on small business and community banking.
The company lost $94 million, or $3.07 per share, in the first quarter due to costs related to the company’s restructuring. The deficit compares with a loss of $22 million, or 77 cents per share, in the same period a year ago, but is less than the $104 million it lost in the fourth quarter.
Irwin Union retains bank branches in Avon, Columbus, Franklin and Indianapolis.
“The sale of the three branch locations north and east of Indianapolis allows us to preserve our core south central Indiana markets,” Irwin Financial CEO Will Miller said in a prepared statement. “These transactions are designed to give us the time necessary to complete our work with the Treasury and private investors who have committed to make equity investments as part of our recapitalization plan.”
Irwin Financial said it sold about $190 million of commercial loans in the second quarter, including those purchased by First Financial. In aggregate, Irwin said the loans were sold at 99.8 percent of par value.
In March, the bank sold its home-equity business to St. Paul, Minn.-based Green Tree Servicing LLC, which removed $690 million of home-equity loans from Irwin’s balance sheets.
Its shares were up 3 cents this morning this morning, to 75 cents each.
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