Janney Montgomery Analyst Maintains Hold Rating on BankFinancial Corporation Amid Acquisition by First Financial Bancorp

Janney Montgomery analyst Brian Martin has maintained a neutral stance on BankFinancial Corporation (BFIN) after the company announced an all-stock acquisition by First Financial Bancorp (FFBC). The transaction, valued at approximately $142 million, represents about 91% of BFIN's tangible book value. Martin opted for a Hold rating due to the strategic nature of the acquisition, the lack of a conference call, and the fact that the transaction represents a small portion of FFBC's market cap.

First Financial Bancorp ("FFBC"), based in Cincinnati, Ohio, has agreed to acquire Chicago-based BankFinancial Corporation ("BankFinancial") in a strategic move to expand its presence in the robust Chicago market. The acquisition, valued at approximately $142 million, represents about 91% of BankFinancial's tangible book value. The transaction is expected to be accretive to FFBC's earnings per share and is structured as an all-stock deal.

Under the terms of the agreement, each outstanding share of BankFinancial common stock will be converted into the right to receive 0.48 of a share of First Financial common stock. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, regulatory approvals, and BankFinancial shareholders' approval.

The acquisition will add 18 retail locations to FFBC's existing network, enhancing its commercial banking capabilities in the Chicagoland area. Upon completion, BankFinancial's consumer, trust/wealth management, and selected commercial credit lines of business will be integrated into FFBC's respective business lines. All BankFinancial bank employees will become First Financial associates.

FFBC's president and CEO, Archie Brown, 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."

Morgan Gasior, chairman, president, and CEO of BankFinancial, echoed similar sentiments, "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."

The acquisition builds on FFBC's recent growth, including its announced agreement to acquire Westfield Bank in Northeast Ohio and its commercial banking expansion into Chicago, Cleveland, and Grand Rapids. FFBC's Midwestern base includes Chicago, IL; Cincinnati, Dayton, Cleveland, and Columbus, OH; Indianapolis, IN; and Louisville, KY.

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