First Financial Bancorp (FFIN) received final regulatory approval from the Federal Reserve and the Ohio Department of Financial Institutions on December 15 2025 to complete its all‑stock acquisition of BankFinancial Corporation (BFIN). The approval clears the last hurdle before the transaction is expected to close around January 1 2026, subject to shareholder consent and customary closing conditions.
The deal values BFIN at approximately $142 million and will combine BFIN’s roughly $1.46 billion in assets with First Financial’s $18.6 billion, creating a larger regional bank with expanded commercial and retail capabilities. The transaction is designed to strengthen First Financial’s footprint in the Chicago suburbs and broaden its commercial finance platform, while providing BFIN shareholders with a clear exit path in a challenging market environment.
BankFinancial’s recent performance has been improving: in Q3 2025 the bank reported a net income of $2.4 million, up from a loss in Q2 2025, and a return on assets of 0.65%. Revenue for the quarter was $18.1 million, reflecting a modest but steady growth in its core deposit and loan businesses. The turnaround is attributed to disciplined cost management and a focus on high‑margin lending in the Midwest region.
First Financial’s Q3 2025 earnings were a record for the company, with revenue of $234 million and adjusted earnings per share of $0.76, matching analyst expectations of $0.75. The strong performance was driven by a robust net interest margin of 4.02% and record non‑interest income, underscoring the bank’s effective pricing strategy and efficient cost structure. CEO Archie Brown highlighted the quarter as “another outstanding one,” citing the combination of solid revenue growth and disciplined expense control.
Strategically, the acquisition is expected to deliver cost synergies of several million dollars annually through the consolidation of overlapping branches, technology platforms, and back‑office functions. Integration plans include a phased transition of BFIN deposits, loans, and staff into First Financial’s operations, with a focus on retaining key talent and minimizing disruption to customers. The deal also positions First Financial to capture additional market share in the Chicago suburbs, where the bank’s commercial lending capabilities are already strong.
The market reacted positively to First Financial’s Q3 2025 earnings, with analysts noting the company’s strong revenue and earnings performance as a sign of continued operational strength. The regulatory approval further reinforces investor confidence in the bank’s growth strategy and its ability to execute large‑scale acquisitions successfully.
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