Ohio-based First Financial expands its presence in Chicago through a $142 million deal
First Financial Expands Presence in Chicago with Acquisition of BankFinancial
In a significant move to strengthen its presence and growth in the Chicago area, First Financial Bancorp has agreed to acquire Burr Ridge, Illinois-based BankFinancial Corp. in an all-stock transaction valued at $142 million.
This deal adds 18 BankFinancial retail financial centers located in key Illinois counties (Cook, DuPage, Lake, and Will), complementing First Financial's existing branches in Illinois and Northwest Indiana. With this acquisition, First Financial is set to incorporate BankFinancial’s consumer banking, trust/wealth management, and selected commercial credit lines into its operations.
The acquisition aligns with First Financial’s Midwest growth strategy, enabling the bank to provide Chicago clients a broader range of banking and specialty financial solutions. Archie Brown, CEO of First Financial, stated that the addition of BankFinancial’s retail financial centers enables them to continue their Midwest growth strategy and provides Chicago clients a broader range of banking and specialty solutions.
The transaction is expected to close in the fourth quarter and add 18 retail locations to First Financial’s Chicago area footprint. This strategic expansion is expected to support First Financial’s financial goals by increasing core deposits, commercial lending capabilities, and market penetration in one of the Midwest’s most economically vital regions.
Leadership emphasizes that this acquisition will help maintain strong customer service and community commitment while expanding product and service availability through enhanced digital tools and additional locations. Raymond James analysts expect the deal to be received favorably by investors given "the easily digestible nature of the deal and modest price."
The acquisition of BankFinancial will also add $1.4 billion in assets, $1.2 billion in deposits, and $800 million in loans to First Financial. First Financial, with $18.6 billion in assets as of mid-2021, will see a pro forma deposit base of approximately $2.2 billion after the deal.
In summary, the expected impact includes:
- Expanded branch network and geographic reach in Chicago and surrounding Illinois counties.
- Growth in core deposits and loan portfolios.
- Broadened product suite incorporating consumer banking, trust, wealth management, and commercial credit lines.
- Enhanced ability to achieve incremental growth in a strong Midwest market.
- Integration of BankFinancial’s employees and customer base, strengthening relationships and continuity.
This acquisition supports First Financial’s goal to leverage synergies and capitalize on the Chicago metropolitan economy, furthering their overall growth and financial objectives in the region. The deal comes roughly a month and a half after First Financial announced the acquisition of Cleveland-area lender Westfield Bancorp for $325 million, also set to close in the fourth quarter.
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