As part of its acquisition of the 16 Ohio branches of Liberty Savings Bank, First Financial Bancorp, Cincinnati, is buying a $143 million in-market performing loan portfolio. The portfolio is made up of 38% residential mortgages, 37% commercial real estate/multifamily loans and 20% home equity loans.
This portfolio's current weighted average coupon is 5.61%. First Financial is paying a premium of $22 million on the deposits to be acquired.
The terms of the agreement allow for loans to be excluded if their performance deteriorates prior to closing.
Claude Davis, First Financial president and chief executive, said, "the acquisition of this branch network and accompanying loan portfolio provides immediate scale and operating profitability in these markets that would otherwise take several years to accomplish on a de novo basis."
The deal gives First Financial 12 offices in the area around Dayton, where it currently has a small presence.
