First Financial to Acquire BankFinancial, Expanding Presence in Chicago

First Financial Bancorp has agreed to acquire Chicago-based BankFinancial Corporation, expanding its presence in the Chicago market with a strong core deposit franchise. The acquisition adds 18 retail locations and augments First Financial's commercial banking presence with additional capabilities, bringing total pro forma deposits to $2.2 billion. All BankFinancial bank employees will become First Financial Bank associates upon closing.

First Financial Bancorp (Nasdaq: FFBC) has agreed to acquire Chicago-based BankFinancial Corporation (Nasdaq: BFIN), marking a strategic expansion into the robust Chicago market. The acquisition, announced on August 11, 2025, will add 18 retail locations to First Financial's existing presence in the region, augmenting its commercial banking capabilities and bringing total pro forma deposits to $2.2 billion [1].

The deal, valued at approximately $142 million, will see each share of BankFinancial's common stock converted into 0.48 of a share of First Financial's common stock. The transaction is expected to be accretive to First Financial's earnings per share and is anticipated to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals [1].

Archie Brown, president and chief executive officer of First Financial, expressed excitement about the acquisition, stating, "We are excited to add consumer banking and lending solutions to the existing lineup of commercial services offered to Chicago businesses. The addition of BankFinancial's retail financial centers enables us to continue our Midwest growth strategy and provides Chicago clients a broader range of banking and specialty solutions to help them meet their financial goals" [1].

Morgan Gasior, chairman, president, and chief executive officer of BankFinancial, echoed these sentiments, noting, "First Financial is the ideal choice to help us continue our legacy of delivering exceptional financial solutions, while maintaining a strong commitment to customer care and service to our communities. We look forward to being part of First Financial's continued success as we expand the scope of our financial services to our customers and communities" [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, with all BankFinancial bank employees becoming First Financial associates [1].

This acquisition follows First Financial's recent growth, including the announced agreement to acquire Westfield Bank in Northeast Ohio and its commercial banking expansion into Chicago, Cleveland, and Grand Rapids. The Midwestern base of First Financial includes Chicago, IL; Cincinnati, Dayton, Cleveland, and Columbus, OH; Indianapolis, IN; and Louisville, KY [1].

First Financial Bancorp operates 128 full-service banking centers as of June 30, 2025, located in Ohio, Indiana, Kentucky, and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis [1].

References:
[1] https://www.marketscreener.com/news/first-financial-bank-to-strategically-expand-presence-in-chicago-with-the-complementary-acquisition-ce7c5ed3d981fe20