First Financial Bancorp, an Ohio-based bank holding company, has announced plans to acquire BankFinancial in an all-stock transaction worth around $142m.
Through the deal, the Nasdaq-listed First Financial aims to expand its presence in the Chicago market.
The agreement will see each BankFinancial share converted into 0.48 of a First Financial share based on the latter’s stock price as of 8 August 2025.
This acquisition enhances First Financial’s commercial banking footprint in Chicagoland, incorporating BankFinancial’s network of 18 financial centres.
First Financial has operations in cities like Chicago, Cincinnati, and Indianapolis and offers a range of banking services through its subsidiary, First Financial Bank. As of mid-2025, it reported $18.6bn in assets and operated 128 full-service banking centres across several states.
BankFinancial, with over a century of experience in commercial lending, provides financial solutions across the Chicago area through its banking offices. It trades on the Nasdaq Global Select Market under the symbol BFIN.
BankFinancial chairman, president, and CEO Morgan Gasior said: “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 merger is expected to be accretive to First Financial’s earnings per share without significantly affecting its tangible book value per share upon closing. Both companies’ boards have unanimously approved the agreement.
All BankFinancial employees will transition to become associates of First Financial, and its consumer, trust/wealth management, and selected commercial credit operations will merge with First Financial’s business lines.
This acquisition aligns with First Financial’s recent growth strategy, including its planned $325m acquisition of Westfield Bank in Northeast Ohio and commercial expansions into other key Midwestern markets.
First Financial president and CEO Archie Brown said: “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. This partnership is truly complementary to our existing Chicago presence and provides capacity for incremental growth in the market.”
The transaction is anticipated to close in Q4 2025, pending customary closing conditions, necessary regulatory approvals, and shareholder consent from BankFinancial.
