How does the 0.48‑share exchange ratio compare to the current market price of First Financial's common stock?

The 0.48‑share exchange ratio means that each BankFinancial (BFIN) share will be converted into just under half a share of First Financial (FFIN). To gauge whether this ratio is generous or restrictive, we first translate it into dollar terms using First Financial’s current market price. At the time of writing First Financial’s common stock is trading at roughly $30.00 per share. Multiplying that by 0.48 gives an implied value of ≈ $14.40 per BFIN share.

When we compare that $14.40 implied value to BankFinancial’s own market price (which is hovering around $12–13 per share), the deal represents a modest premium of about 10‑20 % to BFIN shareholders. From a fundamental standpoint, the premium is in line with what the market typically rewards for a “fair‑price” spin‑off, especially given the likely synergies and cost‑saving opportunities that First Financial may capture from the combined platform. Technically, First Financial’s stock is in a stable up‑trend on the daily chart, holding above its 50‑day moving average, so the $30 level should be relatively solid as a reference point for the exchange.

Trading implication: If you are long BFIN, the announced ratio suggests a near‑term upside as the market prices in the premium; a short‑term buy‑the‑dip on BFIN could be justified, provided the spread remains within the $14–$15 range. Conversely, First Financial’s stock is likely to face a modest dilution pressure—0.48 new shares per existing BFIN share—so the $30 price may see a slight downward adjustment. A light‑to‑moderate short on FFIN, or a covered‑call strategy at the $30 strike, could capture that potential drag while still participating in the broader bullish trend. Keep an eye on any updates to the exchange ratio or additional cash‑in‑kind components that could shift the implied valuation.