Financial Performance - The company reported adjusted net income of $72.6 million and adjusted earnings per share of $0.76 for Q3 2025, resulting in an adjusted return on assets of 1.55% and a return on tangible common equity of 19.3% [3][6] - Tangible book value per share increased to $16.19, a rise of 5% from the previous quarter and 14% year-over-year, while tangible common equity ratio rose by 47 basis points to 8.87% [1][12] - The net interest margin remained strong at 4.02%, despite a slight decline from the previous quarter [4][8] Revenue and Income Streams - Total net revenue reached record levels, with adjusted non-interest income accounting for 31% of total net revenue for the quarter [2][3] - Fee income for the quarter was a record $73.6 million, driven by leasing and foreign exchange businesses, as well as higher syndication fees [10][12] Loan and Deposit Activity - Loan balances decreased by $72 million during the quarter, primarily due to lower production in specialty lending areas and increased construction originations [9][32] - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [4][9] Expense Management - Total non-interest expenses remained flat compared to the previous quarter, excluding performance-related incentives [2][5] - The company has successfully reduced its full-time equivalents by approximately 200 or 9% over the past two years as part of workforce efficiency efforts [2][49] Outlook and Future Expectations - The company anticipates mid-single-digit loan growth for Q4 2025, with expectations for strong deposit growth driven by core deposit balances and seasonal public fund inflows [14][15] - The net interest margin is expected to remain in the range of 3.92% to 3.97% for the next quarter, assuming a 25 basis point rate cut in both October and December [15][25] - The company is preparing for the integration of pending acquisitions, which are expected to enhance operational efficiencies and revenue growth [16][51]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][6] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [4][7] - Tangible book value per share increased to $16.19, a 5% increase from the previous quarter and a 14% increase year-over-year [6][12] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty lending areas and an increase in construction originations [5][10] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [10][11] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but overall expenses were well managed [5][11] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [7][10] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [7] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, driven by strong commercial lending and seasonal public fund inflows [13][34] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance operational efficiency and expand market reach [15][64] - The company aims to maintain an industry-leading net interest margin and is preparing for potential rate cuts while managing deposit costs [13][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for continued growth in fee income and stable credit costs [14][43] - The company anticipates that credit costs will remain steady, with net charge-offs expected to be in the mid-20 basis points range [43] - Management highlighted the competitive deposit environment but indicated that proactive measures have been taken to manage deposit costs effectively [52] Other Important Information - The company recorded $9.1 million in provision expense during the quarter, driven by net charge-offs, with an allowance for credit losses (ACL) coverage of 1.38% of total loans [8][12] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through dividends during the period [12] Q&A Session Summary Question: NDFI loan exposure details - The company has approximately $434 million in the NDFI portfolio, which is conservatively managed and primarily consists of traditional REITs [17][20] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to create about 5 basis points of margin pressure initially, with recovery as deposit costs adjust [21][22] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to drive growth, with specific contributions from Summit funding and commercial real estate [32][34] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter expenses is primarily driven by higher forecasts from Bannockburn and other business segments [40][41] Question: Credit cost outlook - Credit costs are expected to remain steady, with a run rate of mid-20 basis points anticipated [43] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering buybacks, especially if trading below tangible book value [45][46] Question: Deposit competition and funding growth - The company expects to manage deposit costs effectively despite competitive pressures, aided by liquidity from acquisitions [52][54]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [3][5] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [3][6] - Tangible book value per share increased by 5% from the previous quarter to $16.19, and tangible common equity increased by 47 basis points to 8.87% [5][11] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty businesses and a higher percentage of construction originations [4][9] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [6][10] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but overall expenses were well managed [4][10] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [6][9] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [6] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, with strong commercial lending as the primary driver [12][32] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance operational efficiency and expand market reach [14][63] - The company aims to maintain an industry-leading net interest margin and expects it to range between 3.92% and 3.97% in the next quarter [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for increased origination volumes and strong deposit growth [12][14] - Credit costs are expected to remain stable, with annualized net charge-offs projected at 18 basis points [7][42] - The company anticipates a continued focus on expense management while evaluating capital actions to support shareholder returns [11][44] Other Important Information - The company has received regulatory approval for the Westfield transaction, expected to close in early November 2025 [14] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through common dividends [11] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, conservatively managed with no adversely rated credit, primarily consisting of traditional REITs [16][19] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to create about five basis points of near-term pressure on the margin, with a potential recovery as deposit costs adjust [20][22] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to drive growth, with specific verticals like Summit funding projected to perform well in Q4 [31][32] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter expenses is primarily driven by higher forecasts from Bannockburn and other commission-based businesses [40][41] Question: Credit cost outlook - Credit costs are expected to remain steady, with a run rate of 25 to 30 basis points anticipated [42] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering buybacks, particularly if trading below tangible book value [44]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at 76 cents, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][12] - The net interest margin remained strong at 4.02%, despite a slight decline of three basis points from the previous quarter [9][13] - Tangible book value per share increased by 5% from the previous quarter to $16.19, and tangible common equity ratio increased by 47 basis points to 8.87% [7][18] Business Line Data and Key Metrics Changes - Noninterest income reached a record of $73.6 million, representing 31% of total net revenue for the quarter, driven by leasing and foreign exchange businesses [5][10] - Loan balances decreased by $72 million during the quarter, primarily due to lower production in specialty lending areas and increased construction originations [6][14] - Average deposit balances increased by $157 million, driven by higher brokered CDs and money market accounts [10][14] Market Data and Key Metrics Changes - Asset quality metrics remained stable, with nonperforming assets flat as a percentage of total assets and annualized net charge-offs at 18 basis points, showing slight improvement from the previous quarter [7][12] - The company maintained 21% of total balances in noninterest-bearing accounts, focusing on growing lower-cost deposit balances [10] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits by the end of the year, driven by strong commercial lending and seasonal public fund inflows [19][43] - The integration of pending acquisitions, including Westfield, is anticipated to enhance operational efficiency and expand market reach [21][76] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through dividends [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong origination volumes in Q4, with expectations for continued profitability and growth momentum into 2026 [19][22] - The company anticipates credit costs to remain stable, with a projected charge-off rate of 25 to 30 basis points in the current environment [54] - Management noted competitive deposit market conditions but expects a reduction in deposit costs due to recent rate cuts [66] Other Important Information - The company has received regulatory approval for the Westfield acquisition, expected to close in early November [21] - The allowance for credit losses (ACL) coverage increased slightly to 1.38% of total loans, with a total provision expense of $9.1 million recorded during the quarter [11][17] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, primarily composed of traditional REITs and conservatively managed with no adversely rated credits [28] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to exert about five basis points of pressure on the margin, with a potential starting point of around 3.90% for early next year [32] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to be the primary driver of growth, with projections for a 5% annualized growth rate [43] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter guidance is primarily driven by higher forecasts from Bannockburn and Summit, with expectations for continued growth in those areas [52] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering stock buybacks, especially if trading below tangible book value [58]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][10] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [4][8] - Tangible book value per share increased to $16.19, a 5% increase from the previous quarter and a 14% increase year-over-year [6][13] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty lending areas and an increase in construction originations [5][11] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [8][12] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but core expenses remained well managed [9][12] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [8][11] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [8] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, with strong commercial lending as the primary driver [15][30] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance growth and efficiency, with a focus on expanding into new markets [15][17] - The company aims to maintain an industry-leading net interest margin and is preparing for potential rate cuts while managing deposit costs [15][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for increased origination volumes and strong deposit growth [15][17] - Credit costs are expected to remain stable, with net charge-offs projected to be in the mid-20 basis points range [37] - The company is optimistic about its financial performance and the momentum heading into 2026, driven by the pending acquisitions [17][59] Other Important Information - The company has received regulatory approval for the Westfield transaction, expected to close in early November 2025 [15][17] - The allowance for credit losses (ACL) coverage increased slightly to 1.38% of total loans, reflecting a conservative approach to modeling potential losses [9][13] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, primarily composed of traditional REITs and conservatively managed with no adversely rated credit [20] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to exert about five basis points of near-term pressure on margin, with a gradual recovery as deposit costs adjust [23] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is anticipated to drive growth, with specific verticals including Summit funding and commercial real estate projected to contribute positively [30] Question: Fourth quarter expense guidance - The increase in expenses for Q4 is primarily driven by higher forecasts from Bannockburn and Summit, with expectations for continued growth in those areas [34] Question: Capital management post-acquisitions - The company plans to assess capital ratios after the acquisitions and may consider buybacks if trading below tangible book value [39]

Core Insights - First Financial Bancorp (FFBC) reported a revenue of $235.26 million for the quarter ended September 2025, marking a year-over-year increase of 16.1% and exceeding the Zacks Consensus Estimate of $229.75 million by 2.4% [1] - The earnings per share (EPS) for the same period was $0.76, compared to $0.67 a year ago, resulting in an EPS surprise of 1.33% against the consensus estimate of $0.75 [1] Financial Performance Metrics - Net Interest Margin was reported at 4%, aligning with the average estimate of three analysts [4] - Efficiency Ratio stood at 57.4%, slightly better than the estimated 58.1% by three analysts [4] - Total Noninterest Income reached $73.53 million, surpassing the average estimate of $67.9 million from three analysts [4] - Net interest income (tax equivalent) was $161.73 million, close to the estimated $162 million by two analysts [4] Stock Performance - Over the past month, shares of First Financial have returned -6.2%, contrasting with the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - First Financial Bancorp (FFBC) reported quarterly earnings of $0.76 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, and up from $0.67 per share a year ago, representing an earnings surprise of +1.33% [1] - The company posted revenues of $235.26 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.40%, compared to year-ago revenues of $202.62 million [2] - First Financial shares have underperformed the market, losing about 9.4% since the beginning of the year, while the S&P 500 gained 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $228.7 million, and for the current fiscal year, it is $2.79 on revenues of $891.15 million [7] - The estimate revisions trend for First Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Midwest is currently in the top 26% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - For Q3 2025, First Financial reported net income of $71.9 million, or $0.75 per diluted share, compared to $70.0 million, or $0.73 per diluted share in Q2 2025[3]. - The company achieved record total revenue of $234 million and record noninterest income of $73.5 million, with noninterest income representing 31% of total net revenue for the quarter[5][7]. - Net income for the three months ended September 30, 2025, was $71,923 thousand, an increase from $69,996 thousand in the previous quarter[24]. - Diluted net earnings per share rose to $0.75, compared to $0.73 in the prior quarter, reflecting a 2.74% increase[24]. - Income before income taxes increased by 39.8% to $90,677,000 for the three months ended September 30, 2025, compared to $64,878,000 in the same period of 2024[27]. - Net income for the three months ended September 30, 2025, was $71,923,000, a 37.1% increase from $52,451,000 in the same period of 2024[27]. - Basic net earnings per share improved to $0.76 for the three months ended September 30, 2025, compared to $0.56 in the same period of 2024[27]. - Net income for Q3 2025 was $71,923 million, reflecting a 2.8% increase from Q2 2025[29]. Asset and Equity Growth - Total assets reached $18,566,188 thousand, up from $18,419,437 thousand in the previous quarter[24]. - The common equity tier 1 ratio increased to 12.91%, compared to 12.57% in the prior quarter, indicating stronger capital position[24]. - Total shareholders' equity rose by 2.9% to $2,631,855 thousand, reflecting a 7.4% increase year-over-year[34]. - Total shareholders' equity increased to $2,631,855 million as of September 30, 2025, up from $2,450,438 million a year earlier, representing an increase of 7.4%[44]. - Common equity tier 1 capital reached $1,828,843 million, up from $1,661,759 million in the previous year, reflecting strong capital growth[44]. Loan and Deposit Trends - Average deposit growth was 4.3% on an annualized basis, with average deposit balances increasing by $157.2 million[6]. - Average loan balances increased by $11.9 million compared to Q2, although end-of-period loan balances decreased by $71.6 million[6]. - Loans increased to $11,806,065 thousand, compared to $11,792,840 thousand in the prior quarter, showing a growth trend[24]. - Total deposits increased by 0.4% to $14,433,448 thousand, reflecting a 3.5% increase year-over-year[34]. - Total deposits rose to $14,511,925 million, compared to $14,354,775 million in the prior quarter, marking an increase of 1.1%[36]. Credit Quality and Risk Management - Annualized net charge-offs were 0.18%, with nonperforming assets remaining flat at 0.41% of total assets[9]. - The allowance to ending loans ratio improved to 1.38%, compared to 1.34% in the prior quarter, indicating better credit quality[24]. - Provision for credit losses on loans and leases decreased by 13.3% to $8,612,000 for the three months ended September 30, 2025, down from $9,930,000 in the same period of 2024[27]. - Total net charge-offs amounted to $5,218 thousand, down from $6,044 thousand in the prior quarter, representing a decrease of 13.7%[42]. - The ratio of allowance for credit losses to nonaccrual loans was 213.18%, up from 206.08% in the prior quarter[42]. Expense Management - Noninterest expenses increased by 4.5% from the linked quarter to $134.3 million, driven by incentive compensation related to record fee income[6][7]. - Total noninterest expenses increased by 6.8% to $134,269,000 for the three months ended September 30, 2025, compared to $125,759,000 in the same period of 2024[27]. - Noninterest expenses rose by 4.4% to $134,269 million, with salaries and employee benefits increasing by 7.6%[29]. Capital Ratios and Financial Stability - Return on average assets for Q3 2025 was 1.54%, while return on average tangible common equity was 19.11%[4]. - Return on average assets improved to 1.54%, up from 1.52% in the previous quarter[24]. - The leverage ratio improved to 10.50% in Q3 2025, compared to 9.93% in Q3 2024, indicating better asset utilization[44]. - Total capital ratio rose to 15.32% as of September 30, 2025, up from 14.58% a year ago, reflecting enhanced financial stability[44].

Core Insights - First Financial Bancorp reported a net income of $71.9 million for Q3 2025, an increase from $70.0 million in Q2 2025, with diluted earnings per share rising to $0.75 from $0.73 [1][5] - The company achieved record revenue of $234 million in Q3 2025, driven by a robust net interest margin and record noninterest income [4][5] - The company expects to close its acquisition of Westfield Bank on November 1, 2025, and anticipates further efficiencies from pending acquisitions [4][5] Financial Performance - For the nine months ended September 30, 2025, earnings per diluted share increased to $2.02 from $1.72 in the same period of 2024 [1] - Return on average assets for Q3 2025 was 1.54%, while return on average tangible common equity was 19.11% [2][5] - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% [4] Revenue and Income - The net interest margin on a fully tax-equivalent basis was 4.02%, with record noninterest income of $73.5 million [5][6] - Noninterest income represented 31% of total net revenue for the quarter, with significant contributions from leasing business income and foreign exchange income [4][6] - Total allowance for credit losses was $179.5 million, with a quarterly provision expense of $9.1 million [4] Asset Quality and Capital - Nonperforming assets remained stable at 0.41% of total assets, with annualized net charge-offs at 0.18%, showing slight improvement from the previous quarter [4][6] - Tangible book value per share increased by 5% from the previous quarter to $16.19, and tangible common equity rose to 8.87% [4][6] - The total capital ratio increased by 34 basis points to 15.32%, with Tier 1 common equity also rising by 34 basis points to 12.91% [6][7] Operational Efficiency - The company successfully reduced its full-time equivalents by approximately 200, or 9%, over the past two years as part of workforce efficiency efforts [4] - Noninterest expenses were well-managed, remaining flat compared to the second quarter, despite incentives tied to strong performance [4][6] - Average deposit growth was 4.3% on an annualized basis, with total deposits reaching $14.5 billion [6][7]

Core Viewpoint - First Financial Bancorp. is set to announce its third quarter 2025 financial results on October 23, 2025, after market close [1] Company Summary - The announcement regarding the financial results release indicates the company's ongoing commitment to transparency and timely communication with investors [1]