First Financial Bancorp Expands Chicago Presence with $142M BankFinancial Acquisition

First Financial Bancorp is expanding its Chicago footprint with a $142 million deal to acquire BankFinancial Corp. The transaction, expected to close in Q4, will add 18 retail locations and consumer banking services to First Financial's existing commercial services. The acquisition will add $1.4 billion in assets, $1.2 billion in deposits, and $800 million in loans to First Financial, which already has $18.6 billion in total assets.

First Financial Bancorp, a Cincinnati-based bank holding company, has agreed to acquire BankFinancial Corp in a strategic move to expand its footprint in the Chicago market. The all-stock transaction, valued at approximately $142 million, is expected to close in the fourth quarter of 2025 [1].

The acquisition will add 18 retail banking locations to First Financial's existing commercial services in the Chicagoland area. BankFinancial, with over 100 years of experience in commercial lending, will bring its strong customer focus and industry-leading products to the deal [3]. The acquisition is expected to add $1.4 billion in assets, $1.2 billion in deposits, and $800 million in loans to First Financial's balance sheet, which currently stands at $18.6 billion in total assets [1].

First Financial Bancorp's CEO, Archie Brown, stated, "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." The acquisition follows First Financial's recent growth initiatives, including the acquisition of Westfield Bank in Northeast Ohio and its expansion into Chicago, Cleveland, and Grand Rapids [1, 3].

BankFinancial's chairman, president, and CEO, Morgan Gasior, expressed his excitement about the partnership, noting that "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." The integration of BankFinancial's consumer and wealth management services, along with selected commercial credit lines, into First Financial's operations is anticipated to be seamless [1, 3].

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, pending regulatory approvals and the consent of BankFinancial shareholders. Morgan Stanley & Co. LLC is serving as the financial advisor to First Financial, while Keefe, Bruyette & Woods, A Stifel Company, is advising BankFinancial. Squire Patton Boggs and Kirkland & Ellis LLP are providing legal counsel to First Financial and BankFinancial, respectively [1, 3].

References:
[1] https://finance.yahoo.com/news/first-financial-bank-acquire-bankfinancial-111443629.html
[3] https://www.marketscreener.com/news/first-financial-bank-to-strategically-expand-presence-in-chicago-with-the-complementary-acquisition-ce7c5ed3d981fe20