First Financial Bancorp plans to acquire Finward Bancorp, parent company of Peoples Bank, for $208 million.
The all-stock transaction is based on First Financial's July 20 closing stock price. The transaction, which is expected to close by the end of the year, is part of a larger First Financial growth strategy.
“The addition of Finward Bancorp and Peoples Bank is expected to strategically expand First Financial's ability to serve the consumers and businesses of the Chicagoland and Northwest Indiana markets,” said Archie Brown, president and chief executive officer of First Financial Bank, in a press release. “We are excited to partner with a bank with a similar operating philosophy and strong credit culture.”
Cincinnati, Ohio-based First Financial recently acquired Westfield Bancorp in northeast Ohio and BankFinancial Corp. in Chicago.
Peoples Bank has been serving customers for 116 years. The Munster-based company has 24 banking centers.
“This partnership represents an exciting next chapter for our organization and the communities we serve,” said Benjamin Bochnowski, chief executive officer of Peoples Bank. “First Financial shares our deep commitment to customers, employees, shareholders and the communities that have placed their trust in us for more than 100 years.”
Peoples Bank will transition to First Financial in 2027, and employees will become associates of First Financial after the deal closes.
“We are confident this partnership will create meaningful opportunities for our customers and employees, while preserving the community-centered values that have defined our organization for generations,” Bochnowski said.
Brown also said First Financial will earmark $500,000 for donations to organizations in the communities served by Finward.
Finward is estimated to have $2 billion in assets, and First Financial at $22.5 billion. The transaction is still undergoing regulatory and shareholder approval.
First Financial, which was founded in 1863, also has seven branded locations in Northwest Indiana. It has 153 branches total in Ohio, Kentucky, Indiana, Michigan and Illinois.
Peoples Bank assured customers that “everything remains the same” for now. Find updates on the acquision here.
