5 days ago
BankFinancial and its 18 mostly suburban Chicago branches sold for $142 million to First Financial
Cincinnati-based First Financial has agreed to buy BankFinancial, a century-old Burr Ridge-based bank, in an all-stock deal valued at $142 million.
BankFinancial, which opened its doors in 1924 as Oakley Federal Savings in Chicago, has 18 mostly suburban locations in Cook, Cook, DuPage, Lake and Will Counties. The merger, announced Monday, is expected to close in the fourth quarter, pending regulatory and shareholder approval.
Once the acquisition is completed, all BankFinancial branches will move under the First Financial banner, marking the first foray into the competitive Chicago-area retail banking arena for the growing Ohio financial institution, which already has a commercial presence in the market.
'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,' Archie Brown, president and chief executive officer of First Financial, said in a news release.
As of June 30, BankFinancial had total assets of $1.4 billion and 190 full-time employees, according to the latest quarterly filing with the Securities and Exchange Commission.
While the deal is expected to close by the end of the December, BankFinancial customers likely won't see the new name at their local branch for nearly a year.
'All BankFinancial branches will become First Financial locations once the transaction is closed,' Tim Condron, a First Financial spokesperson said in an email. 'While we have not determined an exact time for the transition to the First Financial brand, we anticipate that it will probably occur by summer of 2026.'
Founded in 1863, First Financial has more than 130 banking centers in Ohio, Kentucky, Indiana and Illinois, and $18.6 billion in total assets as of June 30.
First Financial has been growing recently through mergers, announcing the $325 million acquisition of Ohio-based Westfield Bank in June. That deal is also expected to close by year's end, pending regulatory approval.
The addition of BankFinancial's retail footprint will complement First Financial's commercial presence in the Chicago market, which includes a commercial loan production office in Fulton Market, the Agile Premium Finance division in Lincolnshire and Bannockburn Capital Markets in downtown Chicago. First Financial also has retail and commercial banking locations in Northwest Indiana and downstate Kankakee.
BankFinancial executives said the sale to the larger First Financial will benefit customers, even as the bank's first name eventually changes.
'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 chief executive officer of BankFinancial, said in the news release.
While the deal was announced after the market closed Monday, BankFinancial's stock was up nearly 6% to $11.50 per share in after-hours trading.
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