First Financial Bancorp Announces First Quarter 2025 Financial Results

• 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.

 

 

 

 

 

 

 

 

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SOURCE First Financial Bancorp.