First Commonwealth Financial Corporation Expands Presence in Cincinnati with Acquisition of CenterGroup Financial, Inc.
First Commonwealth Financial (NYSE: FCF) has announced an all-stock acquisition of CenterGroup Financial for approximately $54.6 million. The merger will significantly expand First Commonwealth's presence in Cincinnati, adding $348.4 million in total assets, 3 branch locations, a loan production office, and a mortgage office.
Under the agreement, CenterGroup shareholders will receive 6.10 shares of First Commonwealth common stock for each CenterGroup share. The merger, expected to complete in first half of 2025, will enhance First Commonwealth's commercial focus in Cincinnati, incorporating CenterGroup's 65% business-oriented customer base.
The transaction is projected to be 2% accretive to First Commonwealth's earnings in 2025 and 3% accretive in 2026 once cost savings are fully implemented. Tangible book value dilution is expected to be less than 2%.
First Commonwealth Financial (NYSE: FCF) ha annunciato un'acquisizione interamente azionaria di CenterGroup Financial per circa 54,6 milioni di dollari. La fusione espanderà significativamente la presenza di First Commonwealth a Cincinnati, aggiungendo 348,4 milioni di dollari in attivi totali, 3 filiali, un ufficio di produzione prestiti e un ufficio mutui.
Secondo l'accordo, gli azionisti di CenterGroup riceveranno 6,10 azioni ordinarie di First Commonwealth per ciascuna azione di CenterGroup. La fusione, che dovrebbe completarsi nella prima metà del 2025, migliorerà il focus commerciale di First Commonwealth a Cincinnati, incorporando il 65% della clientela orientata agli affari di CenterGroup.
Si prevede che la transazione sia accretiva del 2% agli utili di First Commonwealth nel 2025 e accretiva del 3% nel 2026, una volta che i risparmi sui costi saranno completamente attuati. Si stima che la diluizione del valore contabile tangibile sarà inferiore al 2%.
First Commonwealth Financial (NYSE: FCF) ha anunciado una adquisición íntegramente en acciones de CenterGroup Financial por aproximadamente 54,6 millones de dólares. La fusión expandirá significativamente la presencia de First Commonwealth en Cincinnati, añadiendo 348,4 millones de dólares en activos totales, 3 sucursales, una oficina de producción de préstamos y una oficina de hipotecas.
Según el acuerdo, los accionistas de CenterGroup recibirán 6,10 acciones ordinarias de First Commonwealth por cada acción de CenterGroup. Se espera que la fusión se complete en la primera mitad de 2025 y mejorará el enfoque comercial de First Commonwealth en Cincinnati, incorporando el 65% de la base de clientes orientada a negocios de CenterGroup.
Se proyecta que la transacción será acretiva en un 2% para las ganancias de First Commonwealth en 2025 y acretiva en un 3% en 2026, una vez que se implementen por completo los ahorros de costos. Se espera que la dilución del valor contable tangible sea inferior al 2%.
퍼스트 커먼웰스 파이낸셜 (NYSE: FCF)는 센터그룹 파이낸셜을 약 5,460만 달러에 전량 주식으로 인수한다고 발표했습니다. 이번 합병은 퍼스트 커먼웰스의 신시내티 내 존재감을 크게 확장시키며 3억 4,840만 달러의 총 자산, 3개의 지점, 대출 생산 사무소 및 주택담보대출 사무소를 추가합니다.
합의에 따라 센터그룹 주주들은 센터그룹의 주식 1주당 퍼스트 커먼웰스의 보통주 6.10주를 받게 됩니다. 이번 합병은 2025년 상반기 완료될 예정이며, 퍼스트 커먼웰스의 신시내티 내 상업적 초점을 강화하고 센터그룹의 65%의 비즈니스 지향 고객층을 포함할 것입니다.
이번 거래는 2025년 퍼스트 커먼웰스의 수익에 2% 기여할 것으로 예상되며, 3%는 2026년에 비용 절감 효과가 완전히 구현될 경우로 예상됩니다. 실질 장부 가치의 희석은 2% 미만으로 예상됩니다.
First Commonwealth Financial (NYSE: FCF) a annoncé une acquisition entièrement en actions de CenterGroup Financial pour environ 54,6 millions de dollars. La fusion élargira considérablement la présence de First Commonwealth à Cincinnati, ajoutant 348,4 millions de dollars d'actifs totaux, 3 agences, un bureau de production de prêts et un bureau hypothécaire.
Selon l'accord, les actionnaires de CenterGroup recevront 6,10 actions ordinaires de First Commonwealth pour chaque action de CenterGroup. La fusion, qui devrait se concrétiser au premier semestre 2025, renforcera l'orientation commerciale de First Commonwealth à Cincinnati, en intégrant la base de clients orientée vers les affaires de 65% de CenterGroup.
La transaction devrait être accrétive de 2% pour les bénéfices de First Commonwealth en 2025 et accrétive de 3% en 2026 une fois que les économies de coûts seront pleinement mises en œuvre. La dilution de la valeur comptable tangible devrait être inférieure à 2%.
First Commonwealth Financial (NYSE: FCF) hat eine vollständig in Aktien durchgeführte Übernahme von CenterGroup Financial für etwa 54,6 Millionen US-Dollar angekündigt. Die Fusion wird die Präsenz von First Commonwealth in Cincinnati erheblich erweitern und 348,4 Millionen US-Dollar an Gesamtkapital, 3 Filialen, ein Kreditsproduktionsbüro und ein Hypothekenbüro hinzufügen.
Laut der Vereinbarung erhalten die Aktionäre von CenterGroup 6,10 Aktien von First Commonwealth für jede Aktie von CenterGroup. Die Fusion, die in der ersten Hälfte von 2025 abgeschlossen werden soll, wird den kommerziellen Fokus von First Commonwealth in Cincinnati stärken und die 65% geschäftsorientierte Kundenbasis von CenterGroup integrieren.
Der Transaktion wird voraussichtlich 2% auf die Erträge von First Commonwealth im Jahr 2025 und 3% im Jahr 2026 zugutekommen, sobald die Kostensenkungen vollständig umgesetzt sind. Die Verwässerung des materiellen Buchwerts wird voraussichtlich unter 2% liegen.
- Acquisition adds $348.4 million in total assets to First Commonwealth's portfolio
- Transaction expected to be 2% earnings accretive in 2025 and 3% in 2026
- Expands commercial presence with 65% business-oriented customer base
- Minimal tangible book value dilution of less than 2%
- Strategic expansion in Cincinnati market with 3 new branches
- All-stock transaction may lead to shareholder dilution
- Integration costs and one-time merger charges will impact short-term financials
Insights
INDIANA, Pa. and CINCINNATI, Oh., Dec. 18, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (“First Commonwealth”) (NYSE: FCF), the holding company for First Commonwealth Bank, and CenterGroup Financial, Inc. (“CenterGroup”), the holding company for CenterBank, today jointly announced the signing of an Agreement and Plan of Merger (“Agreement”) providing for the merger of CenterGroup with and into First Commonwealth in an all-stock transaction valued at approximately
The business combination will significantly increase First Commonwealth’s presence in the Cincinnati market, adding approximately
Under the terms of the Agreement, which has been approved by the boards of directors of both companies, CenterGroup shareholders will be entitled to receive a fixed exchange ratio of 6.10 shares of First Commonwealth common stock for each CenterGroup common share. The merger is expected to qualify as a tax-free reorganization and is expected to be completed in the first half of 2025, subject to certain closing conditions, including approval by CenterGroup shareholders and customary bank regulatory approvals.
“We are pleased to welcome CenterBank into our organization, further expanding our commercial franchise within the attractive Cincinnati market. We have known the CenterBank team for a long time and believe their customer-focused, commercially oriented business model is a strong cultural alignment and augments our existing Cincinnati growth plans,” said Mike Price, President and Chief Executive Officer of First Commonwealth. “The expansion of our branch network within greater Cincinnati allows us to attract additional talent, create meaningful customer relationships and deepen our penetration within the market.”
“We are excited to partner with First Commonwealth’s growing and profitable franchise and believe the cultural alignment between our organizations is the ideal next chapter for CenterBank’s customers, employees and shareholders. We have admired First Commonwealth’s business and reputation within this market and are excited to be a part of its further expansion in Cincinnati. This combination also adds expanded banking products to our organization resulting in an enhanced experience for our customers, employees and community,” said Stewart Greenlee, President and Chief Executive Officer of CenterGroup.
Excluding certain one-time merger charges, the transaction is expected to be approximately
Advisors
Raymond James & Associates, Inc. is serving as financial advisor and Squire Patton Boggs (US) LLP is serving as legal counsel to First Commonwealth. Janney Montgomery Scott is serving as financial advisor and Dinsmore & Shohl, LLP is serving as legal counsel to CenterGroup.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services Company with 125 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh and Harrisburg, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The Company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.
About CenterGroup Financial Corporation
CenterGroup’s wholly owned subsidiary, CenterBank, founded in 2000, was built upon an old concept: community banking. CenterBank knows its customers on a first name basis, keeps an open-door policy, and works hard to find common sense solutions for its customers. Specific product sets have been developed for deposits, residential mortgages and full-service banking to owner-managed businesses in the Greater Cincinnati market. CenterBank specializes, and that gives it the opportunity to deliver best in class service to its specific customer niche while effectively managing operating risk. CenterBank has sought to maximize growth within the constraints of acceptable profitability and capital levels to ensure stable and positive regulatory ratings. To learn more about CenterGroup and CenterBank please visit www.center.bank.
Forward-looking Statements:
This joint press release of First Commonwealth and CenterGroup contains “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act, relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of First Commonwealth and CenterGroup.
Forward-looking statements are typically identified by words such as “believe”, “plan”, “expect”, “anticipate”, “intend”, “outlook”, “estimate”, “forecast”, “will”, “should”, “project”, “goal”, and other similar words and expressions. These forward-looking statements involve certain risks and uncertainties. In addition to factors previously disclosed in First Commonwealth reports filed with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors among others, could cause actual results to differ materially from forward- looking statements or historical performance: ability to obtain regulatory approvals in a timely manner and without significant expense or other burdens; ability to meet other closing conditions to the merger, including approval by CenterGroup shareholders; delay in closing the merger; difficulties and delays in integrating the businesses of CenterGroup and First Commonwealth or fully realizing cost savings and other benefits; business disruption following the merger; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of First Commonwealth products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize anticipated cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and the actions and policies of the federal and state bank regulatory authorities and legislative and regulatory actions and reforms. First Commonwealth and CenterGroup undertake no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
CONTACT
Media Relations:
Ron Wahl
Communications and Media Relations
Phone: 724-463-6806
E-mail: RWahl@fcbanking.com
Investor Relations:
Ryan M. Thomas
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com
An investor presentation accompanying this release is available at: http://ml.globenewswire.com/Resource/Download/2a211734-7811-4664-bb65-4a4f56ab1be8
1 As of September 30, 2024
FAQ
What is the value of First Commonwealth's acquisition of CenterGroup Financial?
How many shares of FCF will CenterGroup shareholders receive in the merger?
When is the First Commonwealth-CenterGroup merger expected to close?
How will the CenterGroup acquisition affect First Commonwealth's earnings?
What assets will FCF gain from the CenterGroup acquisition?
