First Financial to Acquire First Illinois in $111.3 Million Merger Deal

Key Facts

In a move reflecting the ongoing consolidation within the U.S. regional banking sector, First Financial Corporation has announced a definitive merger agreement to acquire First Illinois Corporation. According to reports, the transaction is designed to strengthen First Financial's Illinois franchise by adding the operations of Hickory Point Bank and Trust. This strategic expansion aims to bolster the company's geographic footprint and market share within the state.

The deal is structured as a stock and cash transaction valued at approximately $111.3 million, based on First Financial’s stock price of $79.07 as of August 26, 2026. Under the terms, First Illinois stockholders can elect to receive either 0.5727 shares of First Financial common stock or a cash payment of $44.35 per share, subject to a 70% stock and 30% cash allocation. Per market data, Hickory Point Bank held approximately $717 million in total assets as of June 30, 2026.

Looking ahead, the completion of the merger remains subject to customary regulatory approvals. As of August 27, 2026, with specific instrument price data unavailable, the focus remains on qualitative growth prospects and regional integration. Investors are also weighing broader economic indicators, such as the recently released U.S. Services PMI which reached 56.8, as a backdrop for financial sector sentiment.