First Financial Bank has agreed to acquire Chicago-based BankFinancial in an all-stock deal valued at about USD 142 million.
The agreement has been approved by both companies’ boards and is expected to conclude in the fourth quarter of 2025, subject to regulatory clearance, shareholder approval at BankFinancial, and other customary closing conditions.
Under the terms, each BankFinancial share will be exchanged for 0.48 of a First Financial share. The merger is projected to have a neutral effect on First Financial’s tangible book value per share at closing and is expected to add to its earnings per share.
Expansion of services and footprint in the Midwest
The deal will add BankFinancial’s 18 retail branches to First Financial’s network, strengthening its deposit base in the Chicago metropolitan area. First Financial already operates a commercial loan production office in the city’s Fulton Market district, as well as divisions in Lincolnshire and downtown Chicago. The bank also provides retail and business banking services in parts of Northwest Indiana and Northeast Illinois.
Following the merger, BankFinancial’s consumer banking, trust and wealth management, and selected commercial lending operations will be integrated into First Financial’s business lines. All BankFinancial employees are expected to join the acquiring institution.
Representatives from First Financial stated that incorporating BankFinancial will expand the range of services offered in Chicago and support the bank’s growth strategy across the Midwest. Officials from BankFinancial noted that the transaction will enable the continuation of its service approach while broadening offerings for customers and communities.
The acquisition follows First Financial’s recent agreement to buy Westfield Bank in Northeast Ohio and is part of an expansion strategy that has included commercial banking moves into Chicago, Cleveland and Grand Rapids, alongside existing operations in Cincinnati, Dayton, Columbus, Indianapolis and Louisville.
