First Financial Corporation announced July 29 that it completed its merger with HopFed Bancorp, Inc. and the merger of First Financial’s wholly owned subsidiary, First Financial Bank, N.A., with HFBC’s wholly owned subsidiary, Heritage Bank USA, Inc. (“Heritage Bank”).
“We are happy we can officially welcome the customers and associates of Heritage Bank to the First Financial family,” said Norman L. Lowery, President and CEO of First Financial. “We look forward to building on the Heritage tradition of excellent products and services as we combine our institutions into one dynamic community bank.”
Under the terms of the merger agreement, shareholders of HFBC may elect to receive either (or a combination of) 0.444 shares of First Financial common stock or $21.00 in cash for each share of HFBC common stock owned, subject to proration provisions that provide for a targeted aggregate split of 50% of HFBC shares being exchanged for First Financial common stock and 50% for cash. Based upon First Financial’s closing price of $43.43 per share on July 26, 2019, and assuming that a shareholder received 50% stock and 50% cash, the shareholder would receive total consideration with an implied value of approximately $20.14 per share, with an aggregate transaction value of approximately $133.9 million.
“This partnership between our two great companies represents a significant milestone for our customers and our valued associates,” added John Peck, President and CEO of HFBC. “It provides added strength to our organization and substantial opportunities for growth.”
As a result of the merger, First Financial Bank now operates 83 banking centers and five loan production offices serving Indiana, Illinois, Kentucky and Tennessee.