Earnings per diluted share of $0.54; $0.63 on an adjusted(1) basis Return on average assets of 1.13%; 1.33% on an adjusted(1) basis Net interest margin on FTE basis(1) of 3.88% Noninterest income of $51.1 million; $61.0 million on an adjusted(1) basis Noninterest expenses $128.1 million; $126.6 million on an adjusted(1) basis; 3% decline Gallup Exceptional Workplace Award winner for outstanding associate engagement Second consecutive "Outstanding" CRA rating
CINCINNATI, April 24, 2025 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2025.
For the three months ended March 31, 2025, the Company reported net income of $51.3 million, or $0.54 per diluted common share. These results compare to net income of $64.9 million, or $0.68 per diluted common share, for the fourth quarter of 2024.
Return on average assets for the first quarter of 2025 was 1.13% while return on average tangible common equity was 15.16%(1). These compare to return on average assets of 1.41% and return on average tangible common equity of 19.08%(1) in the fourth quarter of 2024.
First quarter 2025 highlights include:
Robust net interest margin of 3.84%, or 3.88% on a fully tax-equivalent basis(1)
6 bp decline from fourth quarter, in line with expectations 12 bp decline in cost of deposits and 18 bp decline in asset yields
Noninterest income of $51.1 million, or $61.0 million as adjusted(1)
Adjustments include $9.9 million loss on sales of investment securities
Sold $164.9 million of securities during the quarter; expected earnback of 2.3 years Record wealth management income Strong results from leasing business
Noninterest expenses of $128.1 million, or $126.6 million as adjusted(1); 3.3% decrease from linked quarter
First quarter adjustments(1) include $0.5 million of efficiency related costs and $1.0 million of other costs not expected to recur such as tax credit investment write-downs and severance costs Decline from linked quarter driven by decreased incentive compensation and lower fraud losses Efficiency ratio of 63.9%; 60.2% as adjusted(1)
Stable loan balances during the quarter
Loan balances decreased $37.6 million compared to the linked quarter Payoffs in Commercial and ICRE lines of business, as well as seasonal production declines, offset modest increases in other portfolios Average loan balances increased 1.5% on an annualized basis compared to linked quarter
Modest seasonal average deposit decline in the first quarter, as expected
Average deposits decreased $99.0 million, or 2.8% on an annualized basis Decline driven by non-interest bearing deposits, brokered deposits and public funds Excluding brokered deposits, total average deposits increased $62.8 million over linked quarter
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(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Total Allowance for Credit Losses of $171.9 million; Total quarterly provision expense of $8.7 million
Loans and leases - ACL of $155.5 million; ratio to total loans of 1.33%; flat compared to prior quarter Unfunded Commitments - ACL of $16.4 million Provision expense driven by net charge offs Nonperforming assets decreased 4 bps to 0.32% of total assets Annualized net charge-offs were 36 bps of total loans; 4 bp decline from linked quarter
Capital ratios stable and strong
Total capital ratio increased 26 bps to 14.90% Tier 1 common equity increased 13 bps to 12.29% Tangible common equity of 8.16%(1); 9.62%(1) excluding impact from AOCI Tangible book value per share of $14.80(1); 4.6% increase from linked quarter
Archie Brown, President and CEO, commented on the first quarter results, "We had another solid quarter, and I am pleased with our performance. Adjusted(1) earnings per share were $0.63, with an adjusted(1) return on assets of 1.33% and an adjusted(1) return on tangible common equity of 17.8%. Our net interest margin remains strong, but declined slightly for the quarter as the decline in loan yields outpaced the decrease in deposit costs. Given current short-term interest rates, we expect the margin to expand in the near-term."
Mr. Brown continued, "Loan balances were stable during the quarter. First quarter loan production was seasonally lower. This combined with the workout of several C&I credits and accelerated payoff pressure in the ICRE portfolio to impact loan growth for the period. We expect a modest level of growth in the second quarter as loan pipelines in our Consumer, C&I, and ICRE business lines are very healthy, however elevated prepayments in ICRE are expected to continue."
Mr. Brown commented on fee income and expenses, "Adjusted(1) fee income was in line with our expectations at $61 million, representing a decline from the linked quarter due to seasonal fluctuations and less foreign exchange income, which offset another record quarter from our Wealth Management business. We expect seasonal rebounds in the second quarter and a healthy increase in fee income overall. We were very pleased with our expense management during the quarter, as adjusted(1) noninterest expenses declined by 3.3% due to a decrease in incentive compensation and lower fraud losses. Our efficiency efforts are ongoing, and, excluding the acquisition of Agile in the first quarter of last year, have resulted in a 7% reduction in FTE. We remain diligent in managing our expenses and expect additional benefits from our optimization efforts in the coming periods."
Mr. Brown commented on asset quality and capital, "We were pleased with improvements in our asset quality metrics for the first quarter. Net charge-offs declined 4 bps from the linked quarter, while nonperforming assets declined by 9.5%. In the near-term, we expect asset quality to continue to improve. With respect to tariffs, we do not yet know their impact, and remain in close contact with our clients to assist them through any uncertainty. Capital ratios are strong and continued to grow in the first quarter. All regulatory ratios were well in excess of regulatory minimums and our tangible common equity ratio increased to 8.2%. Tangible book value per share increased to $14.80, representing a 5% increase from the linked quarter and 18% over the last year. We are focused on growing our tangible book value and are pleased that in the last three years, tangible book value per share has increased by 35%."
Mr. Brown concluded, "I also want to mention how proud I am of two other first quarter events. First Financial has been selected for the Gallup Exceptional Workplace Award for associate engagement. This distinction is earned by less than 3% of the thousands of companies that Gallup partners with worldwide. Engagement is a core part of our strategy and I want to acknowledge and thank our associates who work tirelessly to drive associate engagement, which directly leads to highly satisfied clients and increased shareholder value. Additionally, we have received another "Outstanding" Community Reinvestment Act rating from the Federal Reserve. This rating reflects our commitment to our communities, which is the foundation of our strategic plan. I am proud of our strength in service, investments, and lending, particularly to low and moderate income areas of our footprint.
In closing, while there is much uncertainty regarding the outlook for the economy, I believe we are well positioned to manage through any turbulence. We have very robust capital levels, strong and improving asset quality, diverse revenue streams, well-managed expenses, strong liquidity and industry leading profitability. I am very pleased with our start to the year and look forward to growing and serving clients in this challenging environment."
Full detail of the Company's first quarter 2025 performance is provided in the accompanying financial statements and slide presentation.
Teleconference / Webcast Information First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 25, 2025 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 (U.S. toll free), (609) 800-9099 (U.S. toll), access code 5048068. The recording will be available until May 9, 2025. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.
Press Release and Additional Information on Website This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.
Use of Non-GAAP Financial Measures This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Forward-Looking Statements
Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.
As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:
economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; Management's ability to effectively execute its business plans; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period; the effect of changes in accounting policies and practices; changes in consumer spending, borrowing and saving and changes in unemployment; changes in customers' performance and creditworthiness; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth; the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and our ability to develop and execute effective business plans and strategies.
Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2024, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp. First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2025, the Company had $18.5 billion in assets, $11.7 billion in loans, $14.2 billion in deposits and $2.5 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.7 billion in assets under management as of March 31, 2025. The Company operated 127 full service banking centers as of March 31, 2025, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.
FIRST FINANCIAL BANCORP. CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data) (Unaudited) Three Months Ended, Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2025 2024 2024 2024 2024 RESULTS OF OPERATIONS Net income $ 51,293 $ 64,885 $ 52,451 $ 60,805 $ 50,689 Net earnings per share - basic $ 0.54 $ 0.69 $ 0.56 $ 0.64 $ 0.54 Net earnings per share - diluted $ 0.54 $ 0.68 $ 0.55 $ 0.64 $ 0.53 Dividends declared per share $ 0.24 $ 0.24 $ 0.24 $ 0.23 $ 0.23 KEY FINANCIAL RATIOS Return on average assets 1.13 % 1.41 % 1.17 % 1.38 % 1.18 % Return on average shareholders' equity 8.46 % 10.57 % 8.80 % 10.72 % 9.00 % Return on average tangible shareholders' equity (1) 15.16 % 19.08 % 16.29 % 20.57 % 17.35 % Net interest margin 3.84 % 3.91 % 4.05 % 4.06 % 4.05 % Net interest margin (fully tax equivalent) (1)(2) 3.88 % 3.94 % 4.08 % 4.10 % 4.10 % Ending shareholders' equity as a percent of ending assets 13.55 % 13.13 % 13.50 % 12.81 % 12.99 % Ending tangible shareholders' equity as a percent of: Ending tangible assets (1) 8.16 % 7.73 % 7.98 % 7.23 % 7.23 % Risk-weighted assets (1) 10.10 % 9.61 % 9.86 % 8.95 % 8.80 % Average shareholders' equity as a percent of average assets 13.38 % 13.36 % 13.28 % 12.87 % 13.09 % Average tangible shareholders' equity as a percent of average tangible assets (1) 7.94 % 7.87 % 7.64 % 7.15 % 7.25 % Book value per share $ 26.13 $ 25.53 $ 25.66 $ 24.36 $ 23.95 Tangible book value per share (1) $ 14.80 $ 14.15 $ 14.26 $ 12.94 $ 12.50 Common equity tier 1 ratio (3) 12.29 % 12.16 % 12.04 % 11.78 % 11.67 % Tier 1 ratio (3) 12.61 % 12.48 % 12.37 % 12.11 % 12.00 % Total capital ratio (3) 14.90 % 14.64 % 14.58 % 14.47 % 14.31 % Leverage ratio (3) 10.01 % 9.98 % 9.93 % 9.73 % 9.75 % AVERAGE BALANCE SHEET ITEMS Loans (4) $ 11,724,727 $ 11,687,886 $ 11,534,000 $ 11,440,930 $ 11,066,184 Investment securities 3,411,593 3,372,539 3,274,498 3,131,541 3,137,665 Interest-bearing deposits with other banks 615,812 654,251 483,880 599,348 553,654 Total earning assets $ 15,752,132 $ 15,714,676 $ 15,292,378 $ 15,171,819 $ 14,757,503 Total assets $ 18,368,604 $ 18,273,419 $ 17,854,191 $ 17,728,251 $ 17,306,221 Noninterest-bearing deposits $ 3,091,037 $ 3,162,643 $ 3,106,239 $ 3,144,198 $ 3,169,750 Interest-bearing deposits 11,149,633 11,177,010 10,690,265 10,486,068 10,109,416 Total deposits $ 14,240,670 $ 14,339,653 $ 13,796,504 $ 13,630,266 $ 13,279,166 Borrowings $ 1,001,337 $ 855,083 $ 1,053,737 $ 1,171,246 $ 1,139,014 Shareholders' equity $ 2,457,785 $ 2,441,045 $ 2,371,125 $ 2,281,040 $ 2,265,562 CREDIT QUALITY RATIOS Allowance to ending loans 1.33 % 1.33 % 1.37 % 1.36 % 1.29 % Allowance to nonaccrual loans 261.07 % 237.66 % 242.72 % 249.21 % 243.55 % Nonaccrual loans to total loans 0.51 % 0.56 % 0.57 % 0.54 % 0.53 % Nonperforming assets to ending loans, plus OREO 0.51 % 0.56 % 0.57 % 0.54 % 0.53 % Nonperforming assets to total assets 0.32 % 0.36 % 0.36 % 0.35 % 0.34 % Classified assets to total assets 1.16 % 1.21 % 1.14 % 1.07 % 0.92 % Net charge-offs to average loans (annualized) 0.36 % 0.40 % 0.25 % 0.15 % 0.38 %
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. (2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. (3) March 31, 2025 regulatory capital ratios are preliminary. (4) Includes loans held for sale.
FIRST FINANCIAL BANCORP. CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) 2025 2024 First Fourth Third Second First Full Quarter Quarter Quarter Quarter Quarter Year Interest income Loans and leases, including fees $ 197,163 $ 207,508 $ 215,433 $ 211,760 $ 201,840 $ 836,541 Investment securities Taxable 34,401 33,978 32,367 30,295 28,296 124,936 Tax-exempt 2,204 2,423 2,616 2,704 3,092 10,835 Total investment securities interest 36,605 36,401 34,983 32,999 31,388 135,771 Other earning assets 6,651 7,662 6,703 7,960 7,458 29,783 Total interest income 240,419 251,571 257,119 252,719 240,686 1,002,095 Interest expense Deposits 78,641 85,441 86,554 83,022 76,075 331,092 Short-term borrowings 7,545 6,586 9,932 11,395 10,943 38,856 Long-term borrowings 4,937 5,145 5,073 4,991 4,928 20,137 Total interest expense 91,123 97,172 101,559 99,408 91,946 390,085 Net interest income 149,296 154,399 155,560 153,311 148,740 612,010 Provision for credit losses-loans and leases 9,141 9,705 9,930 16,157 13,419 49,211 Provision for credit losses-unfunded commitments (441) (273) 694 286 (2,259) (1,552) Net interest income after provision for credit losses 140,596 144,967 144,936 136,868 137,580 564,351 Noninterest income Service charges on deposit accounts 7,463 7,632 7,547 7,188 6,912 29,279 Wealth management fees 8,137 7,962 6,910 7,172 6,676 28,720 Bankcard income 3,310 3,659 3,698 3,900 3,142 14,399 Client derivative fees 1,571 1,528 1,160 763 1,250 4,701 Foreign exchange income 12,544 16,794 12,048 16,787 10,435 56,064 Leasing business income 18,703 19,413 16,811 16,828 14,589 67,641 Net gains from sales of loans 4,322 4,634 5,021 4,479 3,784 17,918 Net gain (loss) on investment securities (9,949) 144 (17,468) (64) (5,187) (22,575) Other 4,982 8,088 9,974 4,448 4,911 27,421 Total noninterest income 51,083 69,854 45,701 61,501 46,512 223,568 Noninterest expenses Salaries and employee benefits 75,238 80,314 74,813 75,225 74,037 304,389 Net occupancy 6,019 5,415 5,919 5,793 5,923 23,050 Furniture and equipment 3,813 3,476 3,617 3,646 3,688 14,427 Data processing 8,759 9,139 8,857 8,877 8,305 35,178 Marketing 2,018 2,204 2,255 2,605 1,962 9,026 Communication 812 767 851 816 795 3,229 Professional services 2,739 6,631 2,303 2,885 2,268 14,087 Amortization of tax credit investments 112 14,303 31 31 31 14,396 State intangible tax 877 (104) 876 875 877 2,524 FDIC assessments 3,059 2,736 3,036 2,657 2,780 11,209 Intangible amortization 2,359 2,395 2,395 2,396 2,301 9,487 Leasing business expense 12,802 12,536 11,899 10,128 9,754 44,317 Other 9,469 8,095 8,907 7,640 9,634 34,276 Total noninterest expenses 128,076 147,907 125,759 123,574 122,355 519,595 Income before income taxes 63,603 66,914 64,878 74,795 61,737 268,324 Income tax expense (benefit) 12,310 2,029 12,427 13,990 11,048 39,494 Net income $ 51,293 $ 64,885 $ 52,451 $ 60,805 $ 50,689 $ 228,830 ADDITIONAL DATA Net earnings per share - basic $ 0.54 $ 0.69 $ 0.56 $ 0.64 $ 0.54 $ 2.42 Net earnings per share - diluted $ 0.54 $ 0.68 $ 0.55 $ 0.64 $ 0.53 $ 2.40 Dividends declared per share $ 0.24 $ 0.24 $ 0.24 $ 0.23 $ 0.23 $ 0.94 Return on average assets 1.13 % 1.41 % 1.17 % 1.38 % 1.18 % 1.29 % Return on average shareholders' equity 8.46 % 10.57 % 8.80 % 10.72 % 9.00 % 9.78 % Interest income $ 240,419 $ 251,571 $ 257,119 $ 252,719 $ 240,686 $ 1,002,095 Tax equivalent adjustment 1,213 1,274 1,362 1,418 1,535 5,589 Interest income - tax equivalent 241,632 252,845 258,481 254,137 242,221 1,007,684 Interest expense 91,123 97,172 101,559 99,408 91,946 390,085 Net interest income - tax equivalent $ 150,509 $ 155,673 $ 156,922 $ 154,729 $ 150,275 $ 617,599 Net interest margin 3.84 % 3.91 % 4.05 % 4.06 % 4.05 % 4.02 % Net interest margin (fully tax equivalent) (1) 3.88 % 3.94 % 4.08 % 4.10 % 4.10 % 4.05 % Full-time equivalent employees 2,021 2,064 2,084 2,144 2,116
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
FIRST FINANCIAL BANCORP. CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands) (Unaudited) Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, % Change % Change 2025 2024 2024 2024 2024 Linked Qtr. Comp Qtr. ASSETS Cash and due from banks $ 190,610 $ 174,258 $ 190,618 $ 193,794 $ 199,407 9.4 % (4.4) % Interest-bearing deposits with other banks 633,349 730,228 660,576 738,555 751,290 (13.3) % (15.7) % Investment securities available-for-sale 3,260,981 3,183,776 3,157,265 3,036,758 2,850,667 2.4 % 14.4 % Investment securities held-to-maturity 76,469 76,960 77,985 78,921 79,542 (0.6) % (3.9) % Other investments 120,826 114,598 120,318 132,412 125,548 5.4 % (3.8) % Loans held for sale 17,927 13,181 12,685 16,911 11,534 36.0 % 55.4 % Loans and leases Commercial and industrial 3,832,350 3,815,858 3,678,546 3,782,487 3,591,428 0.4 % 6.7 % Lease financing 573,608 598,045 587,415 534,557 492,862 (4.1) % 16.4 % Construction real estate 824,775 779,446 802,264 741,406 641,596 5.8 % 28.6 % Commercial real estate 3,956,880 4,061,744 4,034,820 4,076,596 4,145,969 (2.6) % (4.6) % Residential real estate 1,479,704 1,462,284 1,422,186 1,377,290 1,344,677 1.2 % 10.0 % Home equity 872,502 849,039 825,431 800,860 773,811 2.8 % 12.8 % Installment 119,672 133,051 141,270 148,530 153,838 (10.1) % (22.2) % Credit card 64,639 62,311 61,140 59,477 60,939 3.7 % 6.1 % Total loans 11,724,130 11,761,778 11,553,072 11,521,203 11,205,120 (0.3) % 4.6 % Less: Allowance for credit losses (155,482) (156,791) (158,831) (156,185) (144,274) (0.8) % 7.8 % Net loans 11,568,648 11,604,987 11,394,241 11,365,018 11,060,846 (0.3) % 4.6 % Premises and equipment 197,968 197,965 196,692 197,873 198,428 0.0 % (0.2) % Operating leases 213,648 209,119 201,080 167,472 161,473 2.2 % 32.3 % Goodwill 1,007,656 1,007,656 1,007,656 1,007,656 1,007,656 0.0 % 0.0 % Other intangibles 77,002 79,291 81,547 83,528 85,603 (2.9) % (10.0) % Accrued interest and other assets 1,089,983 1,178,242 1,045,669 1,147,282 1,067,244 (7.5) % 2.1 % Total Assets $ 18,455,067 $ 18,570,261 $ 18,146,332 $ 18,166,180 $ 17,599,238 (0.6) % 4.9 % LIABILITIES Deposits Interest-bearing demand $ 3,004,601 $ 3,095,724 $ 2,884,971 $ 2,922,540 $ 2,916,518 (2.9) % 3.0 % Savings 4,886,613 4,948,768 4,710,223 4,628,320 4,467,894 (1.3) % 9.4 % Time 3,144,440 3,152,265 3,244,861 3,049,635 2,896,860 (0.2) % 8.5 % Total interest-bearing deposits 11,035,654 11,196,757 10,840,055 10,600,495 10,281,272 (1.4) % 7.3 % Noninterest-bearing 3,161,302 3,132,381 3,107,699 3,061,427 3,175,876 0.9 % (0.5) % Total deposits 14,196,956 14,329,138 13,947,754 13,661,922 13,457,148 (0.9) % 5.5 % FHLB short-term borrowings 735,000 625,000 765,000 1,040,000 700,000 17.6 % 5.0 % Other 64,792 130,452 46,653 139,172 162,145 (50.3) % (60.0) % Total short-term borrowings 799,792 755,452 811,653 1,179,172 862,145 5.9 % (7.2) % Long-term debt 345,878 347,509 344,086 338,556 343,236 (0.5) % 0.8 % Total borrowed funds 1,145,670 1,102,961 1,155,739 1,517,728 1,205,381 3.9 % (5.0) % Accrued interest and other liabilities 611,206 700,121 592,401 660,091 649,706 (12.7) % (5.9) % Total Liabilities 15,953,832 16,132,220 15,695,894 15,839,741 15,312,235 (1.1) % 4.2 % SHAREHOLDERS' EQUITY Common stock 1,637,041 1,642,055 1,639,045 1,635,705 1,632,971 (0.3) % 0.2 % Retained earnings 1,304,636 1,276,329 1,234,375 1,204,844 1,166,065 2.2 % 11.9 % Accumulated other comprehensive income (loss) (253,888) (289,799) (232,262) (323,409) (321,109) (12.4) % (20.9) % Treasury stock, at cost (186,554) (190,544) (190,720) (190,701) (190,924) (2.1) % (2.3) % Total Shareholders' Equity 2,501,235 2,438,041 2,450,438 2,326,439 2,287,003 2.6 % 9.4 % Total Liabilities and Shareholders' Equity $ 18,455,067 $ 18,570,261 $ 18,146,332 $ 18,166,180 $ 17,599,238 (0.6) % 4.9 %
FIRST FINANCIAL BANCORP. AVERAGE CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands) (Unaudited) Quarterly Averages Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2025 2024 2024 2024 2024 ASSETS Cash and due from banks $ 164,734 $ 182,242 $ 179,321 $ 174,435 $ 204,119 Interest-bearing deposits with other banks 615,812 654,251 483,880 599,348 553,654 Investment securities 3,411,593 3,372,539 3,274,498 3,131,541 3,137,665 Loans held for sale 10,212 17,284 16,399 14,075 12,069 Loans and leases Commercial and industrial 3,787,207 3,727,549 3,723,761 3,716,083 3,543,475 Lease financing 585,119 587,110 550,634 509,758 480,540 Construction real estate 797,100 826,936 763,779 683,780 603,974 Commercial real estate 4,018,211 4,045,347 4,059,939 4,146,764 4,101,238 Residential real estate 1,475,703 1,442,799 1,399,932 1,361,133 1,336,749 Home equity 858,153 837,863 811,265 790,384 765,410 Installment 127,192 136,927 143,102 151,753 157,663 Credit card 65,830 66,071 65,189 67,200 65,066 Total loans 11,714,515 11,670,602 11,517,601 11,426,855 11,054,115 Less: Allowance for credit losses (158,206) (161,477) (159,252) (147,666) (143,950) Net loans 11,556,309 11,509,125 11,358,349 11,279,189 10,910,165 Premises and equipment 198,998 197,664 197,881 199,096 198,482 Operating leases 205,181 202,110 180,118 156,457 154,655 Goodwill 1,007,656 1,007,658 1,007,654 1,007,657 1,006,477 Other intangibles 78,220 80,486 82,619 84,577 84,109 Accrued interest and other assets 1,119,889 1,050,060 1,073,472 1,081,876 1,044,826 Total Assets $ 18,368,604 $ 18,273,419 $ 17,854,191 $ 17,728,251 $ 17,306,221 LIABILITIES Deposits Interest-bearing demand $ 3,090,526 $ 3,081,148 $ 2,914,934 $ 2,888,252 $ 2,895,768 Savings 4,918,004 4,886,784 4,694,923 4,617,658 4,399,768 Time 3,141,103 3,209,078 3,080,408 2,980,158 2,813,880 Total interest-bearing deposits 11,149,633 11,177,010 10,690,265 10,486,068 10,109,416 Noninterest-bearing 3,091,037 3,162,643 3,106,239 3,144,198 3,169,750 Total deposits 14,240,670 14,339,653 13,796,504 13,630,266 13,279,166 Federal funds purchased and securities sold under agreements to repurchase 2,055 2,282 10,807 750 4,204 FHLB short-term borrowings 553,667 415,652 626,490 669,111 646,187 Other 99,378 93,298 76,859 161,913 146,127 Total short-term borrowings 655,100 511,232 714,156 831,774 796,518 Long-term debt 346,237 343,851 339,581 339,472 342,496 Total borrowed funds 1,001,337 855,083 1,053,737 1,171,246 1,139,014 Accrued interest and other liabilities 668,812 637,638 632,825 645,699 622,479 Total Liabilities 15,910,819 15,832,374 15,483,066 15,447,211 15,040,659 SHAREHOLDERS' EQUITY Common stock 1,641,016 1,640,280 1,637,045 1,634,183 1,637,835 Retained earnings 1,282,300 1,249,263 1,210,924 1,179,827 1,144,447 Accumulated other comprehensive loss (275,068) (257,792) (285,978) (341,941) (319,601) Treasury stock, at cost (190,463) (190,706) (190,866) (191,029) (197,119) Total Shareholders' Equity 2,457,785 2,441,045 2,371,125 2,281,040 2,265,562 Total Liabilities and Shareholders' Equity $ 18,368,604 $ 18,273,419 $ 17,854,191 $ 17,728,251 $ 17,306,221
FIRST FINANCIAL BANCORP. NET INTEREST MARGIN RATE/VOLUME ANALYSIS (Dollars in thousands) (Unaudited) Quarterly Averages March 31, 2025 December 31, 2024 March 31, 2024 Balance Interest Yield Balance Interest Yield Balance Interest Yield Earning assets Investments: Investment securities $ 3,411,593 $ 36,605 4.35 % $ 3,372,539 $ 36,401 4.28 % $ 3,137,665 $ 31,388 4.01 % Interest-bearing deposits with other banks 615,812 6,651 4.38 % 654,251 7,662 4.65 % 553,654 7,458 5.40 % Gross loans (1) 11,724,727 197,163 6.82 % 11,687,886 207,508 7.04 % 11,066,184 201,840 7.32 % Total earning assets 15,752,132 240,419 6.19 % 15,714,676 251,571 6.35 % 14,757,503 240,686 6.54 % Nonearning assets Allowance for credit losses (158,206) (161,477) (143,950) Cash and due from banks 164,734 182,242 204,119 Accrued interest and other assets 2,609,944 2,537,978 2,488,549 Total assets $ 18,368,604 $ 18,273,419 $ 17,306,221 Interest-bearing liabilities Deposits: Interest-bearing demand $ 3,090,526 $ 15,188 1.99 % $ 3,081,148 $ 15,092 1.94 % $ 2,895,768 $ 14,892 2.06 % Savings 4,918,004 30,355 2.50 % 4,886,784 33,924 2.75 % 4,399,768 29,486 2.69 % Time 3,141,103 33,098 4.27 % 3,209,078 36,425 4.50 % 2,813,880 31,697 4.52 % Total interest-bearing deposits 11,149,633 78,641 2.86 % 11,177,010 85,441 3.03 % 10,109,416 76,075 3.02 % Borrowed funds Short-term borrowings 655,100 7,545 4.67 % 511,232 6,586 5.11 % 796,518 10,943 5.51 % Long-term debt 346,237 4,937 5.78 % 343,851 5,145 5.94 % 342,496 4,928 5.77 % Total borrowed funds 1,001,337 12,482 5.06 % 855,083 11,731 5.44 % 1,139,014 15,871 5.59 % Total interest-bearing liabilities 12,150,970 91,123 3.04 % 12,032,093 97,172 3.20 % 11,248,430 91,946 3.28 % Noninterest-bearing liabilities Noninterest-bearing demand deposits 3,091,037 3,162,643 3,169,750 Other liabilities 668,812 637,638 622,479 Shareholders' equity 2,457,785 2,441,045 2,265,562 Total liabilities & shareholders' equity $ 18,368,604 $ 18,273,419 $ 17,306,221 Net interest income $ 149,296 $ 154,399 $ 148,740 Net interest spread 3.15 % 3.15 % 3.26 % Net interest margin 3.84 % 3.91 % 4.05 % Tax equivalent adjustment 0.04 % 0.03 % 0.05 % Net interest margin (fully tax equivalent) 3.88 % 3.94 % 4.10 % (1) Loans held for sale and nonaccrual loans are included in gross loans.
FIRST FINANCIAL BANCORP. NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) (Dollars in thousands) (Unaudited) Linked Qtr. Income Variance Comparable Qtr. Income Variance Rate Volume Total Rate Volume Total Earning assets Investment securities $ 589 $ (385) $ 204 $ 2,652 $ 2,565 $ 5,217 Interest-bearing deposits with other banks (439) (572) (1,011) (1,412) 605 (807) Gross loans (2) (6,597) (3,748) (10,345) (13,683) 9,006 (4,677) Total earning assets (6,447) (4,705) (11,152) (12,443) 12,176 (267) Interest-bearing liabilities Total interest-bearing deposits $ (4,855) $ (1,945) $ (6,800) $ (3,979) $ 6,545 $ 2,566 Borrowed funds Short-term borrowings (567) 1,526 959 (1,667) (1,731) (3,398) Long-term debt (133) (75) (208) 10 (1) 9 Total borrowed funds (700) 1,451 751 (1,657) (1,732) (3,389) Total interest-bearing liabilities (5,555) (494) (6,049) (5,636) 4,813 (823) Net interest income (1) $ (892) $ (4,211) $ (5,103) $ (6,807) $ 7,363 $ 556 (1) Not tax equivalent. (2) Loans held for sale and nonaccrual loans are included in gross loans.
FIRST FINANCIAL BANCORP. CREDIT QUALITY (Dollars in thousands) (Unaudited) Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2025 2024 2024 2024 2024 ALLOWANCE FOR CREDIT LOSS ACTIVITY Balance at beginning of period $ 156,791 $ 158,831 $ 156,185 $ 144,274 $ 141,433 Provision for credit losses 9,141 9,705 9,930 16,157 13,419 Gross charge-offs Commercial and industrial 8,178 4,333 5,471 2,149 2,695 Lease financing 1,454 2,831 368 190 3 Construction real estate Commercial real estate 5,051 261 2 5,319 Residential real estate 12 60 6 65 Home equity 86 210 90 122 25 Installment 1,321 1,680 1,510 2,034 2,236 Credit card 474 492 768 532 794 Total gross charge-offs 11,513 14,609 8,528 5,035 11,137 Recoveries Commercial and industrial 195 1,779 434 236 162 Lease financing 29 17 11 1 59 Construction real estate Commercial real estate 24 19 25 137 38 Residential real estate 24 23 22 37 24 Home equity 144 222 240 118 80 Installment 563 499 421 219 145 Credit card 84 305 91 41 51 Total recoveries 1,063 2,864 1,244 789 559 Total net charge-offs 10,450 11,745 7,284 4,246 10,578 Ending allowance for credit losses $ 155,482 $ 156,791 $ 158,831 $ 156,185 $ 144,274 NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) Commercial and industrial 0.85 % 0.27 % 0.54 % 0.21 % 0.29 % Lease financing 0.99 % 1.91 % 0.26 % 0.15 % (0.05) % Construction real estate 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Commercial real estate 0.00 % 0.49 % 0.02 % (0.01) % 0.52 % Residential real estate (0.01) % 0.00 % 0.01 % (0.01) % 0.01 % Home equity (0.03) % (0.01) % (0.07) % 0.00 % (0.03) % Installment 2.42 % 3.43 % 3.03 % 4.81 % 5.33 % Credit card 2.40 % 1.13 % 4.13 % 2.94 % 4.59 % Total net charge-offs 0.36 % 0.40 % 0.25 % 0.15 % 0.38 % COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS Nonaccrual loans Commercial and industrial $ 7,649 $ 6,641 $ 10,703 $ 17,665 $ 14,532 Lease financing 6,487 6,227 11,632 5,374 3,794 Construction real estate Commercial real estate 25,736 32,303 23,608 22,942 23,055 Residential real estate 16,044 16,700 14,596 12,715 12,836 Home equity 2,920 3,418 4,074 3,295 4,036 Installment 719 684 826 682 984 Total nonaccrual loans 59,555 65,973 65,439 62,673 59,237 Other real estate owned (OREO) 213 64 30 30 161 Total nonperforming assets 59,768 66,037 65,469 62,703 59,398 Accruing loans past due 90 days or more 228 361 463 1,573 820 Total underperforming assets $ 59,996 $ 66,398 $ 65,932 $ 64,276 $ 60,218 Total classified assets $ 213,351 $ 224,084 $ 206,194 $ 195,277 $ 162,348 CREDIT QUALITY RATIOS Allowance for credit losses to Nonaccrual loans 261.07 % 237.66 % 242.72 % 249.21 % 243.55 % Total ending loans 1.33 % 1.33 % 1.37 % 1.36 % 1.29 % Nonaccrual loans to total loans 0.51 % 0.56 % 0.57 % 0.54 % 0.53 % Nonperforming assets to Ending loans, plus OREO 0.51 % 0.56 % 0.57 % 0.54 % 0.53 % Total assets 0.32 % 0.36 % 0.36 % 0.35 % 0.34 % Classified assets to total assets 1.16 % 1.21 % 1.14 % 1.07 % 0.92 %
FIRST FINANCIAL BANCORP. CAPITAL ADEQUACY (Dollars in thousands, except per share data) (Unaudited) Three Months Ended, Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2025 2024 2024 2024 2024 PER COMMON SHARE Market Price High $ 29.04 $ 30.34 $ 28.09 $ 23.78 $ 23.68 Low $ 24.25 $ 23.98 $ 21.70 $ 20.79 $ 21.04 Close $ 24.98 $ 26.88 $ 25.23 $ 22.22 $ 22.42 Average shares outstanding - basic 94,645,787 94,486,838 94,473,666 94,438,235 94,218,067 Average shares outstanding - diluted 95,524,262 95,487,564 95,479,510 95,470,093 95,183,998 Ending shares outstanding 95,730,353 95,494,840 95,486,317 95,486,010 95,473,595 Total shareholders' equity $ 2,501,235 $ 2,438,041 $ 2,450,438 $ 2,326,439 $ 2,287,003 REGULATORY CAPITAL Preliminary Common equity tier 1 capital $ 1,724,134 $ 1,709,422 $ 1,661,759 $ 1,626,345 $ 1,582,113 Common equity tier 1 capital ratio 12.29 % 12.16 % 12.04 % 11.78 % 11.67 % Tier 1 capital $ 1,769,357 $ 1,754,584 $ 1,706,796 $ 1,671,258 $ 1,626,899 Tier 1 ratio 12.61 % 12.48 % 12.37 % 12.11 % 12.00 % Total capital $ 2,090,211 $ 2,057,877 $ 2,012,349 $ 1,997,378 $ 1,940,762 Total capital ratio 14.90 % 14.64 % 14.58 % 14.47 % 14.31 % Total capital in excess of minimum requirement $ 617,347 $ 581,659 $ 563,273 $ 548,037 $ 516,704 Total risk-weighted assets $ 14,027,274 $ 14,059,215 $ 13,800,728 $ 13,803,249 $ 13,562,455 Leverage ratio 10.01 % 9.98 % 9.93 % 9.73 % 9.75 % OTHER CAPITAL RATIOS Ending shareholders' equity to ending assets 13.55 % 13.13 % 13.50 % 12.81 % 12.99 % Ending tangible shareholders' equity to ending tangible assets (1) 8.16 % 7.73 % 7.98 % 7.23 % 7.23 % Average shareholders' equity to average assets 13.38 % 13.36 % 13.28 % 12.87 % 13.09 % Average tangible shareholders' equity to average tangible assets (1) 7.94 % 7.87 % 7.64 % 7.15 % 7.25 % REPURCHASE PROGRAM (2) Shares repurchased Average share repurchase price N/A N/A N/A N/A N/A Total cost of shares repurchased N/A N/A N/A N/A N/A
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. (2) Represents share repurchases as part of publicly announced plans. N/A = Not applicable Cision
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SOURCE First Financial Bancorp.
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First Financial Bancorp Announces First Quarter 2025 Financial Results
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