First Financial Corp. in Terre Haute, Ind., is bulking up in Illinois with a deal to acquire Freestar Bank in Pontiac for $47 million.
First Financial has $2.5 billion of assets and 51 branches, including 15 in Illinois. The deal for Freestar, announced Tuesday, would add $400 million of assets and 13 branches in seven counties in east-central Illinois.
"The Freestar organization provides us with an excellent opportunity to leverage our already strong presence in Illinois and allows Freestar's customers to continue to bank with a community-focused financial institution," Norm Lowery, First Financial's vice chairman and chief executive officer, said in a news release.
Freestar earned $2.7 million through the first half of this year and at June 30 it had a return on equity of 12.78%, according to the Federal Deposit Insurance Corp. The bank is well capitalized and, compared to the industry at large, it has low levels of nonperforming loans.
Aside from acquiring Freestar's assets, First Financial also said that it would also assume certain liabilities of Freestar's parent company, PNB Holding Co., totaling roughly $8.2 million. The sale is expected to close in December.
