BankFinancial (BFIN) in Burr Ridge, Ill., has reached a compromise with activist investor PL Capital.

The agreement paves the way for John Palmer, a principal and co-founder of PL Capital, to join BankFinancial's board. BankFinancial said in a press release Monday that, in exchange, PL Capital will support the $1.4 billion-asset company's board nominees as long as the standstill agreement exists.

PL Capital has a 5.5% stake in BankFinancial, according to a February regulatory filing.

BankFinancial shareholder will vote on directors at the company's annual meeting in June. If elected, Palmer will serve through 2017.

Adding Palmer "is consistent with the commitment of our board … to consider constructive input from our stockholders, including the many institutional investors that hold positions in our stock," BankFinancial Chairman and Chief Executive F. Morgan Gasior said in the release.

PL Capital announced plans in November to mount a proxy challenge against Alliance Bancorp Inc. of Pennsylvania (ALLB) in Broomall.

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