Pennsylvania bank continues prolonged Ohio push

First Commonwealth Financial of Indiana, Pa., continued its push into Ohio with the announced acquisition of Foundation Bank in Cincinnati on Wednesday. The $58 million stock and cash deal will mark First Commonwealth’s entry into the Cincinnati market, now the sixth piece of an extensive reach into its neighboring state.

Once the transaction closes, expected in the second quarter, the $7.4 billion First Commonwealth will have a presence in Ohio’s three largest metropolitan areas, adding Cincinnati to Cleveland and Columbus.

“This partnership is a continuation of our strategy to expand our footprint in Ohio, and is the perfect follow up to our recent successful acquisitions in northern and central Ohio,” First Commonwealth CEO Michael Price said in a statement. “Foundation Bank represents an excellent springboard for our commercial and mortgage banking activities in the Cincinnati metro area. I have personally spent part of my banking career in Cincinnati, and I am confident the First Commonwealth brand will resonate well with consumers and business owners in the region.”

Garfield Acquisition, the holding company of the $216 million Foundation Bank, will sell for approximately $17.4 million in cash and about 2.8 million shares of First Commonwealth stock.

“We are excited to be joining the First Commonwealth team,” Foundation President and CEO Joe Hughes said. “Our community bank cultures are very closely aligned, and we are confident that this partnership will greatly benefit our customers, employees and the communities we have had the privilege to serve over the years.”

First Commonwealth expects the transaction to be accretive to tangible book value at closing and accretive to earnings per share within the first full year of operations.