First Financial Corporation agreed to buy First Illinois Corporation in a stock-and-cash deal valued at about $111.3 million, expanding its Illinois footprint with Hickory Point Bank and Trust.
The transaction values First Illinois at an implied $45.00 per share, based on First Financial’s Aug. 26 closing price of $79.07. Under the merger terms, First Illinois stockholders can elect either 0.5727 shares of First Financial common stock or $44.35 in cash per share, with the deal structured so that 70% of shares are exchanged for stock and 30% for cash.
The combined company will have roughly $6.9 billion in total assets, $4.9 billion in total loans and $5.5 billion in total deposits.
Hickory Point Bank, the First Illinois subsidiary, had about $717 million in assets as of June 30, 2026, with $438 million in loans and $627 million in deposits. That means the target adds about 10% to the combined company’s asset base, about 9% of total loans and about 11% of total deposits.
The bank operates 8 branches in Decatur, Springfield and Champaign, strengthening First Financial’s existing Illinois franchise. First Financial said the acquisition adds a core deposit base and liquidity that will support funding and growth.
The deal was unanimously approved by both boards and is expected to close in the fourth quarter of 2026, pending regulatory and First Illinois shareholder approvals. First Illinois directors have already agreed to vote their shares in favor of the merger. Following these announcements, the company's shares moved 0.42%, and are now trading at a price of $79.40. For more information, read the company's full 8-K submission here.
