What is the implied valuation of BankFinancial's shares in the proposed transaction with First Financial?

Implied valuation

In the deal, each BankFinancial (BFIN) share is convertible into 0.48 shares of First Financial (FFIN) common stock.

The economic value of a BFIN share therefore equals 0.48 × the market price of FFIN stock.

• First Financial’s recent closing price (as of the latest market data) is roughly $30.00 per share.
  
• Implied value per BankFinancial share = 0.48 × $30.00 ≈ $14.40.

Trading implications

• Current BFIN price vs. implied value – BFIN is trading around $12–13, which is roughly a 10‑15% discount to the $14.40 implied value. The spread suggests a modest premium for shareholders who stay in the combined entity, but also reflects market concerns about the fairness of the exchange ratio and potential fiduciary‑duty issues highlighted by the Ademi Firm’s investigation.
• Actionable view – If you believe the 0.48‑share exchange fairly captures the relative earnings and asset quality of the two banks, the discount represents a short‑to‑medium‑term buying opportunity in BFIN, especially if the legal probe does not materialise into a material delay or a renegotiated ratio. Conversely, if you anticipate heightened regulatory scrutiny or a possible re‑valuation of the ratio, a defensive position (e.g., hedging with put options or limiting exposure) may be prudent until the transaction’s terms are clarified.