First Financial has obtained approval from the Federal Reserve and the Ohio Department of Financial Institutions to proceed with its planned acquisition of BankFinancial. 

In August this year, First Financial signed an agreement to acquire BankFinancial, a Chicago-based financial institution, in an all-stock deal valued at around $142m. 

Under the agreement, BankFinancial shareholders will receive 0.48 shares of First Financial for each share they hold. 

The boards of directors of both companies have unanimously approved the merger. 

This transaction is expected to close by 1 January 2026, subject to customary closing conditions and approval from BankFinancial shareholders. 

First Financial previously said that the acquisition will help expand its presence in the Chicagoland area, where BankFinancial operates 18 financial centres. 

BankFinancial offers commercial lending and a range of financial solutions to businesses and individuals in the greater Chicago market. 

Upon completion of the transaction, First Financial will assume BankFinancial’s consumer and wealth management services and all its employees. 

Also, the bank will add selected commercial credit lines to its existing operations. 

Last month, First Financial completed its acquisition of Westfield Bancorp and its subsidiary, Westfield Bank, from Ohio Farmers Insurance Company.  

The bank signed an agreement in June this year to acquire Westfield Bancorp in a cash-and-stock transaction valued at $325m. 

Westfield Bank’s retail locations and related services will now operate as part of First Financial’s network, under current branding until the conversion process completes, which is anticipated by March 2026. 

First Financial said that the acquisition of Westfield Bank would expand its commercial banking and wealth management services in Northeast Ohio.