First Financial Bancorp in Cincinnati has agreed to buy Oak Street Holdings, a provider of commercial financing to the insurance industry.
The $7.2 billion-asset First Financial will pay $110 million in cash for Oak Street. The deal is expected to close by Aug. 31.
First Financial expects the acquisition will add 16 to 20 cents to earnings per share after the first full year of operation. Oak Street is also expected to expand First Financial's net interest margin by at least 20 basis points.
Oak Street is an Indianapolis company that makes loans to insurance agents and brokers. Oak Street also provides third-party loan servicing to financial institutions. It held $242 million in total assets, as of June 30.
RBC Capital Markets was the financial adviser to First Financial and Frost Brown Todd was the legal counsel. Raymond James & Associates advised Oak Street and Akin Gump Strauss Hauer & Feld was its legal counsel.