BUSINESS COMBINATIONS |
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Pending acquisition On June 23, 2025, First Financial Bancorp entered into a Stock Purchase Agreement with Ohio Farmers Insurance Company, an Ohio insurance company, to acquire Westfield Bancorp, Inc., an Ohio corporation. Upon completion of the transaction, Westfield Bank, FSB, a federal savings bank, and a wholly owned subsidiary of Westfield Bancorp, will merge into First Financial Bank. As of June 30, 2025, Westfield Bancorp operated seven full-service banking offices and had, on an unaudited basis, approximately $2.1 billion of total assets, $1.6 billion of total loans and $1.8 billion of total deposits. Pursuant to the Purchase Agreement, First Financial agreed to acquire all of the issued and outstanding equity securities of Westfield Bancorp in exchange for a cash payment of $260.0 million and 2,753,094 shares of First Financial common stock, equal to $65.0 million as of the date the deal was priced, for a total purchase price of $325.0 million. The closing of the acquisition is subject to customary conditions, including, among others, receipt of required regulatory approvals; the absence of any governmental order that restrains, prevents or materially alters the transactions contemplated by the Purchase Agreement; the accuracy of the parties’ representations and warranties contained in the Purchase Agreement (subject to certain qualifications); and the parties’ material compliance with the covenants and agreements in the Purchase Agreement. No First Financial shareholder approval is required, and approval of Westfield Bancorp’s sole shareholder, Ohio Farmers, has been received. First Financial expects the acquisition to close in the fourth quarter of 2025. This pending acquisition supplements First Financial’s existing commercial banking and wealth management presence in Northeast Ohio by adding all of Westfield’s retail banking locations and its commercial, insurance agency, and private banking services. Closed acquisition On February 29, 2024, First Financial acquired Agile Premium Finance for $96.9 million in an all cash transaction. Agile originates commercial loans for the payment of annual property and casualty insurance for businesses. The loans are secured by the unearned premium of the policies and have an average term of approximately ten months. Upon completion of the transaction, Agile became a division of the Bank and continues to operate as Agile Premium Finance, taking advantage of its existing brand recognition within the insurance premium financing industry. Operating results from the Agile acquisition have been included in the Consolidated Statements of Income since the acquisition date. The Agile transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. The fair value measurements of assets acquired and liabilities assumed were $97.8 million and $2.7 million, respectively. Acquisition accounting adjustments are considered final at June 30, 2025. Goodwill arising from the Agile acquisition was $1.8 million and reflects the additional revenue growth expected with the Company's expansion into the insurance premium financing business. First Financial incurred no expenses related to the Agile acquisition in the second quarter of 2025 and $0.1 million for the six months ended June 30, 2025. For second quarter of 2024 and the six months ended June 30, 2024, the Company incurred $0.1 million and $0.2 million, respectively. The goodwill arising from the Agile acquisition is deductible for income tax purposes. For further detail, see Note 8 – Goodwill and Other Intangible Assets. The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value.
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