First Financial Bancorp closed its all‑stock acquisition of Chicago‑based BankFinancial Corporation on January 1 2026, finalizing a deal that values the transaction at approximately $142 million. The exchange ratio of 0.48 shares of First Financial common stock for each share of BankFinancial common stock gives FFBC a 100% ownership stake and aligns the interests of both shareholder groups.
The acquisition expands FFBC’s asset base to roughly $22 billion, up from $18.6 billion as of September 30 2025, and adds 18 full‑service banking centers in the Chicago market. BankFinancial’s strong core deposit franchise and its regional and national commercial loan, lease, and deposit lines broaden FFBC’s product mix, positioning the bank to cross‑sell retail and wealth‑management services to new and existing customers.
Management views the deal as a key milestone in FFBC’s targeted M&A strategy. President and CEO Archie Brown said the Chicago expansion “provides significant opportunities for growth and profitability because of the many solutions we can bring to new and existing clients in this market.” Integration of systems and operations is expected to be complete by June 2026, while BankFinancial locations will continue to operate under their current name until full integration.
The transaction strengthens FFBC’s competitive position in a highly contested Midwestern banking market. By adding BankFinancial’s deposit and loan capabilities, FFBC can deepen its retail presence while leveraging its existing commercial banking strengths. The deal also aligns with industry consolidation trends, where larger institutions seek scale and geographic reach to drive long‑term growth.
Financially, the acquisition lifts FFBC’s total assets to $22 billion and enhances its deposit base, supporting the bank’s goal of growing fee‑income in high‑margin retail and commercial segments. The added 18 Chicago centers provide immediate cross‑sell opportunities for FFBC’s wealth‑management and commercial finance businesses, potentially accelerating revenue growth in those segments.
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