First Financial Bancorp received final regulatory approval from the Federal Reserve and the Ohio Department of Financial Institutions on December 15, 2025, clearing the way for the all‑stock transaction with BankFinancial Corporation. The approval follows earlier consent from the Ohio Department of Commerce on December 9 and the Federal Reserve on December 12, and the company announced the combined decision on the 15th.
The $142 million deal, valued in shares, is expected to close around January 1, 2026, subject to customary closing conditions and shareholder approval. The transaction adds roughly $1.4 billion in assets, $1.2 billion in deposits, and $800 million in loans to First Financial’s balance sheet, and it brings 18 BankFinancial branches into the Chicago market, a low loan‑to‑deposit ratio franchise that complements First Financial’s community‑banking focus.
First Financial reported third‑quarter 2025 earnings of $0.75 per diluted share and record revenue of $234 million, driven by a 4.02% net interest margin on a full‑time‑equivalent basis. The company’s balance sheet as of September 30, 2025 showed $18.6 billion in assets, $11.7 billion in loans, $14.4 billion in deposits, and $2.6 billion in shareholders’ equity, positioning it well to absorb the additional assets and deposits from BankFinancial.
BankFinancial’s own third‑quarter 2025 results included a net income of $2.4 million, a turnaround from a loss in the prior quarter, and a net interest margin of 3.47%–3.67% over the last five quarters. Its return on assets ranged from –0.49% to 0.58%, and its P/E ratio was 33, indicating a valuation premium relative to its peers. The acquisition is expected to be accretive to First Financial’s earnings per share without diluting tangible book value per share.
The transaction is projected to generate 10–15% cost synergies through consolidation of operations and to strengthen First Financial’s competitive position in the Midwest. Management expects the integration of BankFinancial’s consumer, trust, and wealth‑management services, along with selected commercial credit lines, to enhance cross‑sell opportunities and to broaden the bank’s product mix.
President and CEO Archie Brown said the addition of BankFinancial’s retail centers “enables First Financial to continue its Midwest growth strategy and provide Chicago clients with a broader range of banking and specialty solutions.” He also expressed confidence in the bank’s Q4 2025 performance and the momentum heading into 2026.
The deal reflects a broader consolidation trend among regional banks seeking scale to improve profitability in a low‑interest‑rate environment. By expanding its footprint and adding a low loan‑to‑deposit franchise, First Financial aims to achieve operational leverage, reduce per‑customer costs, and enhance resilience against competitive pressures.
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