First Financial and BankFinancial have entered into an agreement by which First Financial will acquire Chicago-based BankFinancial in an all-stock transaction, expanding First Financial’s presence in the Chicagoland market with a core deposit franchise including 18 financial centers. The acquisition also builds on First Financial’s existing commercial banking presence in the Chicagoland market.
“We are excited to add consumer banking and lending solutions to the existing lineup of commercial services offered to Chicago businesses,” Archie Brown, president and CEO of First Financial, said. “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.”
Upon completion of the transaction, BankFinancial’s consumer, trust/wealth management and selected commercial credit lines of business will be incorporated into First Financial’s respective business lines, and all BankFinancial bank employees will become First Financial associates.
“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,” Morgan Gasior, chairman, president and CEO of BankFinancial, said. “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.”
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, valuing the transaction at approximately $142 million, based on First Financial’s closing stock price on Aug. 8, 2025. The transaction is expected to be accretive to First Financial’s earnings per share and First Financial’s tangible book value per share at closing is estimated to be approximately unchanged. The merger agreement has been unanimously approved by the boards of directors of First Financial and BankFinancial.
The transaction is expected to close in Q4/25, subject to satisfaction of customary closing conditions, regulatory approvals and approval of BankFinancial shareholders.
Morgan Stanley is serving as financial advisor to First Financial. Keefe, Bruyette & Woods, a Stifel company, is serving as financial advisor to BankFinancial. Squire Patton Boggs (US) is serving as legal counsel to First Financial. Kirkland & Ellis and Luse Gorman are serving as legal counsel to BankFinancial.
