First Financial has signed a definitive agreement to acquire HopFed Bancorp (HFBC) in a cash and stock transaction valued at $128.3m.
As a part of the agreement, HFBC subsidiary Heritage Bank USA will merge into First Financial Bank.
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HopFed Bancorp acquisition
Under the terms of the agreement, HFBC stockholders will receive either (or a combination of) 0.444 shares of First Financial common stock or $21 in cash against each HFBC common stock share.
Headquartered in Hopkinsville of Kentucky, HFBC has nearly $905m in consolidated assets. It has 18 bank branches and three loan production offices in Kentucky and Tennessee.
First Financial has assets of around $3bn with 65 branches in east-central Illinois and west-central Indiana through First Financial Bank.
The HopFed Bancorp acquisition will increase First Financial’s combined consolidated assets to approximately $3.9bn.
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By GlobalDataFirst Financial president and CEO Norman Lowery said: “Heritage provides us with an opportunity to leverage our capabilities and expand into new markets.
“We look forward to continuing Heritage’s commitment to its customers and the communities it serves.”
HFBC president and CEO John Peck said: “The agreement with First Financial provides us with stability and growth opportunities that will allow our customers to continue to enjoy a great relationship with a strong community-focused financial organisation.”
The transaction is expected to be completed in the second quarter of 2019, subject customary closing conditions as well as regulatory and HFBC stockholder approvals.
