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First Financial to Acquire BankFinancial, Expands Chicago Presence
ZACKSยท2025-08-14 16:06

Core Viewpoint - First Financial Corporation Indiana (THFF) has agreed to acquire BankFinancial Corporation (BFIN) in an all-stock transaction valued at approximately $142 million, aiming to strengthen its presence in the Chicagoland market and enhance service offerings [1][7]. Financial Details - BankFinancial shareholders will receive 0.48 shares of First Financial for each share they hold, with the transaction unanimously approved by both companies' boards. The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals and shareholder consent [2]. Integration Plans - Upon completion, BankFinancial's consumer and wealth management services, along with selected commercial credit lines, will be integrated into First Financial's existing operations. All BankFinancial employees will transition to First Financial to maintain client relationships and community engagement [3]. Strategic Rationale - The acquisition will add 18 BankFinancial centers to First Financial's network, expanding its presence in the Chicagoland area and complementing its existing branch network across Ohio, Indiana, Kentucky, and Illinois [4][7]. Growth Strategy - This transaction aligns with THFF's broader Midwest growth strategy, which includes a prior agreement to acquire Westfield Bank in Northeast Ohio, and ongoing expansion efforts into Chicago, Cleveland, and Grand Rapids [5]. Leadership Statement - Archie Brown, president and CEO of First Financial, emphasized that the addition of BankFinancial's retail financial centers supports the Midwest growth strategy and provides Chicago clients with a broader range of banking and specialty solutions [6]. Market Performance - Over the past year, First Financial shares have increased by 39.4%, outperforming the industry's rise of 20.5% [6].