BankFinancial Corp Acquisition by First Financial

In a significant development in the financial sector, First Financial Bancorp has announced its acquisition of BankFinancial Corporation in a $142 million stock deal. This strategic move is set to expand First Financial’s footprint in the Chicago market, a region known for its robust economic activity.

Details of the Acquisition

The acquisition, announced on August 11, 2025, involves First Financial Bancorp acquiring the Chicago-based BankFinancial Corporation. This transaction is expected to enhance First Financial’s presence in Illinois and Northwest Indiana by adding 18 retail locations. The acquisition will also bolster First Financial’s commercial banking capabilities, with total pro forma deposits projected to reach $2.2 billion.

Upon the completion of the acquisition, all employees of BankFinancial will transition to become associates of First Financial Bank. This merger is anticipated to create synergies between the two institutions, leveraging their complementary strengths.

Financial Performance and Market Reaction

Prior to the acquisition announcement, BankFinancial reported earnings per share (EPS) that fell short of estimates by $0.20, although its revenue performance exceeded expectations. As of August 7, 2025, BankFinancial’s stock was trading at $10.79, marking its 52-week low. The company’s market capitalization stood at approximately $134.45 million, with a price-to-earnings ratio of 30.30.

Strategic Implications

The acquisition is strategically significant for First Financial, as it aims to strengthen its core deposit franchise in a key market. By integrating BankFinancial’s operations, First Financial is poised to enhance its service offerings and expand its customer base across both consumer and commercial sectors.

Conclusion

This acquisition marks a pivotal moment for both First Financial and BankFinancial, setting the stage for expanded operations and increased market presence in the Chicago area. Stakeholders are closely watching the integration process, anticipating the potential benefits of this strategic alliance.