First Financial to acquire Westfield Bancorp in $325 million deal

CINCINNATI - First Financial Bancorp (NASDAQ:FFBC), a financially healthy bank with a market capitalization of $2.27 billion according to InvestingPro data, has entered into a definitive agreement to acquire Westfield Bancorp for $325 million in a cash and stock transaction, according to a press release statement issued today.

The deal, which includes $260 million in cash and approximately 2.75 million shares of First Financial stock valued at $65 million, will expand First Financial’s presence in Northeast Ohio. Westfield Bancorp, with $2.2 billion in assets, is currently owned by Ohio Farmers Insurance Company. InvestingPro analysis indicates First Financial is currently trading below its Fair Value, suggesting potential upside for investors.

The acquisition will increase First Financial’s assets to $20.6 billion and add all of Westfield Bank’s retail locations to its network. These locations will remain open and be rebranded as First Financial Bank after the transaction closes.

"This targeted expansion of our commercial, consumer, and specialty banking businesses broadens our ability to serve additional clients," said Archie Brown, president and CEO of First Financial.

Mike Toth, Chairman, President, and CEO of Westfield Bank, noted that the bank has grown to become "one of Ohio’s largest independently owned community banks."

The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals. First Financial projects the acquisition will be 12% accretive to earnings with a tangible book value earn-back of approximately 2.9 years. The bank has demonstrated consistent profitability with earnings per share of $2.41 over the last twelve months and maintains a 43-year track record of consecutive dividend payments, as highlighted by InvestingPro data.

This acquisition follows First Financial’s recent expansions into Chicago, Cleveland, and Grand Rapids, adding to its existing Midwestern presence in Cincinnati, Dayton, Indianapolis, Louisville, and Columbus.

As part of its commitment to Northeast Ohio, First Financial has pledged to donate $500,000 to its Foundation to benefit local organizations in communities served by Westfield Bank. The bank’s strong financial position is reflected in its "GOOD" Financial Health score from InvestingPro, with particularly robust metrics in relative value and profitability.

In other recent news, First Financial Bancorp reported its first-quarter earnings for 2025, revealing an adjusted earnings per share of $0.63, which met analysts’ expectations. However, the company fell short on revenue, reporting $200.38 million compared to the forecasted $214.8 million. This revenue miss has raised some concerns among investors regarding future growth drivers. At its Annual Meeting of Shareholders, First Financial Bancorp secured approval for several key proposals, including the election of directors and the ratification of Crowe LLP as the independent accounting firm. RBC Capital Markets revised its price target for First Financial Bancorp, lowering it from $30.00 to $27.00, while maintaining a Sector Perform rating. The firm noted the company’s consistent outlook and strategic deposit pricing as positive factors. Additionally, First Financial Bancorp anticipates modest loan growth and expects interest rate cuts, with non-interest expenses having declined by 3.3%, indicating effective cost management. The company continues to focus on managing expenses and exploring growth opportunities amid a competitive banking environment.

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