Overview

• First Financial Bancorp has agreed to acquire BankFinancial Corp in an all-stock transaction valued at about $142 million, equating to $11.37 per share or roughly 91% of tangible book value.
• The boards of directors at both banks have unanimously approved the merger, which is expected to close in the fourth quarter pending customary regulatory and BankFinancial shareholder approvals.
• The deal adds BankFinancial’s 18 Chicagoland branches to First Financial’s network, lifting its metro footprint to about 25 offices and more than $2 billion in retail deposits.
• Upon closing, BankFinancial’s consumer, trust/wealth management and selected commercial credit lines will be integrated into First Financial’s business lines and its employees will become First Financial associates.
• First Financial forecasts cost savings equal to 45% of BankFinancial’s operating expenses and plans to sell the target’s $500 million multifamily loan portfolio to generate additional liquidity.