BankFinancial Merges with First Financial, Valued at $142 Million

BankFinancial Corporation will merge with First Financial Bancorp, expanding First Financial's presence in the Chicago market and adding 18 retail locations. The transaction is valued at approximately $142 million and is expected to close in Q4 2025. The merger will integrate BankFinancial's consumer, trust/wealth management, and selected commercial credit lines into First Financial's business lines, making it accretive to First Financial's earnings per share.

First Financial Bancorp (Nasdaq: FFBC) has agreed to acquire BankFinancial Corporation (Nasdaq: BFIN), strategically expanding its presence in the robust Chicago market. The acquisition will add 18 retail locations and enhance its commercial banking capabilities. The transaction is valued at approximately $142 million and is expected to close in the fourth quarter of 2025 [1].

First Financial Bancorp, based in Cincinnati, Ohio, is a bank holding company with $18.6 billion in assets and $14.4 billion in deposits as of June 30, 2025 [1]. BankFinancial, NA, with over 100 years of expertise in commercial lending, will bring 18 full-service banking offices located in Cook, DuPage, Lake, and Will Counties in Illinois to the combined entity [1].

Upon completion of the transaction, BankFinancial's consumer, trust/wealth management, and selected commercial credit lines of business will be integrated into First Financial's respective business lines [1]. This merger is expected to be accretive to First Financial's earnings per share and will not significantly impact its tangible book value per share at closing [1].

The merger agreement has been unanimously approved by the boards of directors of both companies and is subject to customary closing conditions, regulatory approvals, and approval by BankFinancial shareholders [1]. Morgan Stanley & Co. LLC is serving as the financial advisor to First Financial, while Keefe, Bruyette & Woods, A Stifel Company, is serving as the financial advisor to BankFinancial [1].

This acquisition is part of First Financial's recent period of growth, which includes the announced agreement to acquire Westfield Bank in Northeast Ohio and its commercial banking expansion into Chicago, Cleveland, and Grand Rapids [1]. The merger will enable First Financial to continue its Midwest growth strategy and provide Chicago clients with a broader range of banking and specialty solutions [1].

References:
[1] https://www.prnewswire.com/news-releases/first-financial-bank-to-strategically-expand-presence-in-chicago-with-the-complementary-acquisition-of-bankfinancial-302526801.html