First Financial Bancorp closed its all‑stock acquisition of BankFinancial Corporation on January 1 2026, exchanging 0.48 shares of First Financial stock for each BankFinancial share. The transaction, valued at approximately $142 million, gives First Financial a premium over BankFinancial’s book value and adds $1.46 billion of assets to the combined balance sheet, raising First Financial’s total assets to roughly $22 billion.
The deal extends First Financial’s footprint into the Chicago market, where it will add a network of retail consumer‑focused branches that complement its existing commercial‑lending operations. By integrating BankFinancial’s community‑bank franchise, First Financial gains immediate access to a broader customer base and a stronger presence in a key growth region, positioning the bank to capture additional market share and cross‑sell its product suite.
Archie Brown, President and CEO of First Financial, said the expansion “presents significant opportunities for growth and profitability because we can bring a full range of solutions to new and existing clients in Chicago.” He added that the bank’s mission is to “create opportunities to help our clients and communities thrive,” underscoring the strategic intent behind the acquisition.
BankFinancial’s recent financial history shows a rebound after a Q2 2025 loss, with net income of $2.4 million in Q3 2025 following a $2.1 million profit in Q4 2023. First Financial reported net income of $71.9 million in Q3 2025, up from $70.0 million in Q2 2025, and an EPS of $0.68 in Q4 2024. The combined entity is expected to be accretive to earnings, as the larger scale and diversified product mix should drive higher revenue and cost efficiencies.
The market reacted positively to the closing, reflecting confidence in First Financial’s growth strategy and the favorable terms of the deal. Investors noted the strong Q3 2025 earnings and the strategic fit of the Chicago expansion, which aligns with the bank’s broader Midwest consolidation plan.
Regulatory approval was finalized on December 15 2025, clearing the last hurdle before the transaction closed. The acquisition follows First Financial’s recent purchases of Westfield Bank and Agile Premium Finance, and it is part of a broader industry trend of consolidation driven by the need for scale and regulatory efficiency. BankFinancial, founded in 1924, has a long history of dividend payments, and its locations will continue to operate under the BankFinancial name until the conversion process completes in June 2026.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.