First Financial Bancorp has agreed to acquire Finward Bancorp in an all-stock transaction valued at approximately $208 million. The deal would expand First Financial’s banking presence across Northwest Indiana and the Chicago metropolitan market.
Under the agreement, each outstanding Finward common share will be converted into 1.35 First Financial common shares. The stated transaction value is based on First Financial’s closing share price on July 20, 2026.
The transaction has been unanimously approved by the boards of both companies. It is expected to close during the fourth quarter of 2026, subject to regulatory approvals, Finward shareholder approval and other customary closing conditions.
Finward is the parent company of Peoples Bank, which operates 24 locations across Lake and Porter counties in Northwest Indiana and the broader Chicagoland region. Peoples Bank provides personal, commercial, electronic and wealth management services.
Following completion, Finward’s consumer banking, commercial credit, trust and wealth management operations will be incorporated into First Financial’s corresponding business lines. Peoples Bank employees will become First Financial associates.
The acquisition is expected to increase First Financial’s deposits in the Chicago metropolitan statistical area by 75% to more than $4 billion. The expanded franchise will include Finward’s 24 financial centers and the 15 retail locations First Financial added through its acquisition of BankFinancial Corporation.
First Financial expects the transaction to increase its earnings per share by approximately 5%. The company projects tangible book value per share dilution of about 0.4% at closing, with an anticipated earnback period of approximately 0.6 years.
Tangible book value excludes intangible assets such as goodwill and is frequently used to evaluate bank mergers. An earnback period estimates how long the buyer expects it will take to recover the dilution caused by issuing shares and accounting for the transaction.
The acquisition continues a period of expansion for First Financial, including its recent purchases of Westfield Bancorp in Northeast Ohio and BankFinancial Corporation in Chicago. The company has also expanded commercial banking operations in Chicago, Cleveland and Grand Rapids.
First Financial had $22.4 billion in assets, $13.7 billion in loans and $17.6 billion in deposits as of June 30, 2026. Its wealth management business oversaw approximately $4.6 billion in assets under management.
Morgan Stanley is serving as First Financial’s financial adviser, while Stephens is advising Finward and provided a fairness opinion to its board. Squire Patton Boggs is acting as legal counsel to First Financial, and Barack Ferrazzano Kirschbaum & Nagelberg is advising Finward.
KEY QUOTES:
“The addition of Finward Bancorp and Peoples Bank is expected to strategically expand First Financial’s ability to serve the consumers and businesses of the Chicagoland and Northwest Indiana markets. We are excited to partner with a bank with a similar operating philosophy and strong credit culture.”
“We have built an impressive combination of retail and commercial banking services, wealth management services, and specialty banking solutions, complemented by our client-centered, community-focused business model, that offers an alternative to larger banks.”
Archie Brown, President and CEO of First Financial Bank
“This partnership represents an exciting next chapter for our organization and the communities we serve. First Financial shares our deep commitment to customers, employees, shareholders, and the communities that have placed their trust in us for more than 100 years.”
“Together, we are accelerating our common strategy to better serve the Chicagoland and Northwest Indiana markets. We are creating a stronger regional banking franchise with expanded capabilities, greater resources, and a sharper focus on delivering exceptional service.”
Benjamin Bochnowski, CEO of Peoples Bank
