First Financial Bancorp Announces Third Quarter and Year to Date 2025 Financial Results

• Earnings per diluted share of $0.75; $0.76 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.54%; 1.55% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 4.02%
• Record total revenue of $234 million
• Record noninterest income of $73.5 million; $73.6 million on an adjusted⁽¹⁾ basis
• TCE ratio increased to 8.87%; ROATCE of 19%
• Annualized net charge-offs of 0.18% 
• Obtained regulatory approval for Westfield acquisition; expected close November 1^st

CINCINNATI, Oct. 23, 2025 /PRNewswire/ -- First Financial Bancorp. (NASDAQ:FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2025. 

For the three months ended September 30, 2025, the Company reported net income of $71.9 million, or $0.75 per diluted common share.  These results compare to net income of $70.0 million, or $0.73 per diluted common share, for the second quarter of 2025.  For the nine months ended September 30, 2025, First Financial had earnings per diluted share of $2.02 compared to $1.72 for the same period in 2024.

Return on average assets for the third quarter of 2025 was 1.54% while return on average tangible common equity was 19.11%⁽¹⁾.  These compare to return on average assets of 1.52% and return on average tangible common equity of 19.61%⁽¹⁾ in the second quarter of 2025.

Third quarter 2025 highlights include:

• Robust net interest margin of 3.99%, or 4.02% on a fully tax-equivalent basis⁽¹⁾
  • 3 bp decrease from second quarter
  • 1 bp increase in funding costs and 2 bp decrease in asset yields
• Record noninterest income of $73.5 million; $73.6 million on an adjusted⁽¹⁾ basis
  • Leasing business income remains strong at $21.0 million
  • Foreign exchange income increased 21.1% to $16.7 million
  • Other noninterest income increased $2.8 million due to higher syndication fees and higher income on other investments
• Noninterest expenses of $134.3 million, or $133.3 million as adjusted⁽¹⁾; 4.5% increase from linked quarter
  • Third quarter adjustments⁽¹⁾ include $0.1 million of tax credit investment writedowns and $0.8 million of efficiency and acquisition related costs
  • Increase driven by incentive compensation tied to record fee income
  • Efficiency ratio of 57.4%; 57.0% as adjusted⁽¹⁾
• Slight decline in loan balances during the quarter
  • Average loan balances increased $11.9 million compared to second quarter while end of period loan balances decreased $71.6 million
• Average deposit growth of 4.3% on an annualized basis
  • Average deposit balances increased $157.2 million
  • Growth in brokered deposits, money markets and interest-bearing demand partially offset by a seasonal decline in public funds

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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 $179.5 million; Total quarterly provision expense of $9.1 million
  • Loans and leases - ACL of $161.9 million; ratio to total loans of 1.38%
  • Unfunded Commitments - ACL of $17.6 million
  • Annualized net charge-offs were 18 bps of total loans; 3 bp decline from linked quarter
  • Nonperforming assets remained flat at 0.41% of total assets
• Capital ratios remain strong  
  • Total capital ratio increased 34 bps to 15.32%
  • Tier 1 common equity increased 34 bps to 12.91%
  • Tangible common equity of 8.87%⁽¹⁾; 10.15%⁽¹⁾ excluding impact from AOCI
  • Tangible book value per share of $16.19⁽¹⁾; 5.1% increase from linked quarter

Archie Brown, President and CEO, commented on third quarter results, "The third quarter of 2025 was another outstanding quarter for First Financial.  Adjusted⁽¹⁾ net income was $72.6 million and adjusted⁽¹⁾ earnings per share were $0.76, which resulted in an adjusted⁽¹⁾ return on assets of 1.55% and an adjusted⁽¹⁾ return on tangible common equity of 19.3%."

Mr. Brown continued, "We achieved record revenue in the third quarter driven by a robust net interest margin and record noninterest income.  We have successfully maintained asset yields, while moderating our funding costs, which combined to result in an industry-leading net interest margin.  In addition, our diverse income streams remain a positive differentiator for us, with our adjusted⁽¹⁾ noninterest income representing 31% of total net revenue for the quarter. 

Expenses continue to be well-managed.  Excluding incentives tied to strong performance and the record fee income, total noninterest expenses were flat compared to the second quarter.  Our workforce efficiency efforts continued during the period, and we have successfully reduced our full time equivalents by approximately 200, or 9%, since we began our initiative two years ago.  We expect further efficiencies subsequent to the integration of our pending acquisitions." 

Mr. Brown further remarked, "Loan balances declined modestly during the quarter, falling short of our expectations.  Lower production in our specialty businesses, along with a greater percentage of construction originations, which fund over time, drove the modest decline.  Loan pipelines are very healthy as we enter the fourth quarter, and we expect a return to mid-single digit loan growth as we close out the year." 

Mr. Brown commented on asset quality and capital, "Asset quality metrics were stable for the third quarter.  Nonperforming assets were flat as a percent of assets and annualized net charge-offs were 18 basis points, which was a slight improvement from the linked quarter. 

We were very happy that our strong earnings led to the continued growth in tangible book value per share and tangible common equity during the third quarter.  Tangible book value per share of $16.19 increased 5% from the linked quarter and 14% from a year ago, while tangible common equity increased 47 basis points from June 30^th, to 8.87% at the end of September." 

Mr. Brown concluded, "We remain excited about our pending acquisitions and are pleased to have received formal regulatory approval for our acquisition of Westfield Bank, which is expected to close on November 1^st.  Our application for the acquisition of BankFinancial is in process and we anticipate closing that transaction early in the first quarter of 2026. 

We are very proud of our financial performance through the first nine months of the year, which have resulted in industry leading profitability.  We expect to have another strong quarter to close 2025 and build positive momentum as we head into 2026."

Full detail of the Company's third 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, October 24, 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 November 7, 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;
• 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 September 30, 2025, the Company had $18.6 billion in assets, $11.7 billion in loans, $14.4 billion in deposits and $2.6 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 $4.0 billion in assets under management as of September 30, 2025.  The Company operated 127 full service banking centers as of September 30, 2025, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis.  In 2025, First Financial Bank received its second consecutive Outstanding rating from the Federal Reserve for its performance under the Community Reinvestment Act and was recognized as a Gallup Exceptional Workplace Award winner, one of only 70 Gallup clients worldwide to receive this designation.  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.