Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its ...

Group 1: Stock Recommendations - Kingstone Companies, Inc. (KINS) has a Zacks Rank 1 and a price-to-earnings ratio (P/E) of 8.53, significantly lower than the S&P 500's 20.49, with a Value Score of A and a 16.1% increase in current year earnings estimate over the last 60 days [1] - First Financial Bancorp. (FFBC) also carries a Zacks Rank 1, with a P/E of 9.39 compared to the industry average of 10.70, a Value Score of B, and a 5.2% increase in current year earnings estimate over the last 60 days [2] - Futu Holdings Limited (FUTU) holds a Zacks Rank 1, with a P/E of 15.57, lower than the S&P 500's 20.49, a Value Score of B, and a 10.2% increase in current year earnings estimate over the last 60 days [3]

Group 1: Frontier Group Holdings, Inc. (ULCC) - Frontier Group Holdings is an airline company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 63.2% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 7.14, compared to 12.60 for the industry, and possesses a Value Score of A [1] Group 2: First Financial Bancorp. (FFBC) - First Financial Bancorp is a bank holding company for First Financial Bank with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 5.6% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 9.65, compared to 10.90 for the industry, and possesses a Value Score of B [2] Group 3: Molson Coors Beverage Company (TAP) - Molson Coors Beverage Company is a beverage company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its next year earnings has increased by 6.4% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 9.75, compared to 14.50 for the industry, and possesses a Value Score of A [3]

Company Overview - First Financial Bancorp (FFBC) is based in Cincinnati and operates in the Finance sector, with a year-to-date share price change of 2.34% [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 3.49%, which is higher than the Banks - Midwest industry's yield of 2.96% and the S&P 500's yield of 1.52% [3] Dividend Performance - The annualized dividend of $0.96 represents a 2.1% increase from the previous year [4] - Over the past 5 years, FFBC has increased its dividend once on a year-over-year basis, with an average annual increase of 0.46% [4] - The current payout ratio is 37%, indicating that the company paid out 37% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $2.64 per share, reflecting an expected increase of 0.76% from the previous year [5] Investment Appeal - FFBC is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7]

Acquisition and Financial Position - First Financial Bancorp acquired Agile Premium Finance for $96.9 million in an all-cash transaction on February 29, 2024[36]. - The acquisition resulted in $97.8 million of assets and $2.7 million of liabilities, leading to $1.8 million of goodwill[37]. - As of December 31, 2024, the Bank reported $5.9 billion in uninsured deposits[83]. - The company's indebtedness decreased from $1.3 billion in 2023 to $1.1 billion in 2024, largely due to an increase in deposits[147]. - The company had $3.7 billion in assets under management as of December 31, 2024, which is subject to market risks and volatility[169]. Employee and Community Engagement - As of December 31, 2024, First Financial had approximately 2,090 employees primarily located in Ohio, Indiana, Kentucky, and Illinois[29]. - In 2024, 59% of eligible employees qualified for benefits under the Wellbeing Program, which supports employee health and wellbeing[30]. - The company emphasizes local decision-making to meet the needs of its targeted customers, which include individuals and small to medium-sized businesses[41]. Banking Services and Competition - The company offers a full range of banking services, including commercial lending, real estate lending, and consumer financing[16]. - First Financial competes with local and regional financial institutions, credit unions, and online lenders, as well as FinTech companies and digital assets[42]. - The company focuses on a community banking model, serving metropolitan and non-metropolitan markets in Indiana, Ohio, Kentucky, and Illinois[38]. Regulatory Compliance and Capital Requirements - First Financial is subject to the Bank Holding Company Act and requires Federal Reserve Board approval for acquisitions exceeding 5% of voting shares of other banks[44]. - The Federal Reserve Board mandates that all depository institutions maintain reserves, which were reduced to 0% effective March 26, 2020, to support lending during the COVID-19 pandemic[52]. - As of December 31, 2024, the Bank met the capital ratio requirements to be deemed "well-capitalized," with a common equity tier 1 capital ratio of at least 6.5%[69]. - The Basel III capital rules require a minimum total capital ratio of 8.0% and a minimum leverage ratio of 4.0%[61]. - The ability of First Financial to pay dividends is dependent on the Bank's compliance with capital requirements and Federal Reserve Board approval[73]. Cybersecurity and Operational Risks - The company expects high risks and exposures related to cybersecurity attacks to remain due to the increasing sophistication of threats and the expanding use of technology-based services[103]. - The company has implemented a layered cybersecurity approach, but acknowledges the constant threat from sophisticated cyber-attacks[103]. - The Company maintains a risk management strategy that includes monitoring and mitigating cybersecurity risks through various tools and employee training[208]. - Cybersecurity risks could lead to significant reputational damage and financial losses due to breaches of customer data security[134]. - The company faces operational risks from reliance on third-party vendors, which could disrupt business operations[133]. Economic and Market Conditions - The company anticipates that local economic conditions in Indiana, Ohio, Kentucky, and Illinois will significantly affect its financial condition and results of operations[115]. - The company reported that a decline in the U.S. economy could lead to increased loan defaults and foreclosures, impacting its financial results[110]. - Changes in market interest rates could significantly affect its net interest income and overall financial condition[112]. - Weakness in the secondary market for residential mortgage loans could lead to higher losses or charge-offs in the mortgage loan portfolio[121]. Credit Losses and Provisions - In 2023, the company recorded a provision expense of $43.1 million due to loan portfolio growth and increased net charge-offs[129]. - The allowance for credit losses may not be sufficient to cover actual credit losses, potentially impacting operating results[127]. - The company may incur significant provision expense for credit losses in future periods depending on macroeconomic shifts[130]. - Regulatory reviews may require the company to increase its provision for credit losses, impacting financial condition[128]. Taxation and External Risks - The Company is subject to extensive federal, state, and local taxes, and changes in tax laws could materially affect its results of operations[203]. - Adverse external events, such as natural disasters or acts of war, could impact the Company's business operations and continuity plans[204]. Changes in Regulations and Compliance - The company is subject to regulatory compliance changes due to the new Presidential administration's reform agenda, which may incur additional costs[114]. - The company faces risks related to compliance with data protection and privacy laws, which could result in regulatory investigations and increased costs[190]. - Regulatory changes following recent bank failures may lead to increased capital requirements and compliance costs for the company[193]. Financial Performance and Market Impact - The Federal Reserve decreased the target fed funds rate by 100 basis points in 2024, leading to a decrease in the Bank's net interest margin from 4.40% at December 31, 2023 to 4.05% at December 31, 2024[201]. - The company reported that losses on investment securities were higher in 2024 due to market volatility, but does not expect these losses to continue in 2025[188]. - Significant declines in market capitalization could indicate potential impairment of goodwill, particularly if sustained over time[173]. - The company may reduce or eliminate dividends on common shares in the future, which could affect the market price of its common shares[172].

Group 1 - Intercorp Financial Services Inc. (IFS) has seen a 2.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 3.2%, significantly higher than the industry average of 0.0% [1] - Fox Corporation (FOXA) has experienced a 3.8% increase in the Zacks Consensus Estimate for its current year earnings in the last 60 days, with a dividend yield of 1.1%, also above the industry average of 0.0% [2] - First Financial Bancorp. (FFBC) has had a 1.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2 - Another company with a Zacks Rank 1 has a dividend yield of 3.5%, which is higher than the industry average of 2.8% [3]

Expansion into Michigan - First Financial Bank is expanding into Michigan with the introduction of Chris Turner as commercial market president and the opening of a commercial banking office in Grand Rapids [1] - Chris Turner, a Grand Rapids native with over 32 years of experience in the financial services industry, will lead the commercial banking team and manage client relationships in the area [1][4] - The expansion into Grand Rapids follows recent expansions into Chicago, Cleveland, and Evansville, Indiana [5] Services and Solutions - First Financial will offer Michigan businesses a broad suite of sophisticated banking solutions, including commercial credit, asset-based lending, treasury management, trade finance, M&A advisory, and employee financial wellness programs [2] - Specialty banking lines of business include Bannockburn Capital Markets, Summit Funding Group, Oak Street Funding, Agile Premium Finance, and Yellow Cardinal Advisory Group [2] - The company provides end-to-end solutions for business owners, from start-up to mergers and acquisitions, business succession, and managing investment and legacy financial needs [3] Leadership and Strategy - Archie Brown, president and CEO, emphasized the importance of local market knowledge and connections in building new relationships and growing the company's presence in Grand Rapids [2] - Chris Turner highlighted the company's focus on offering a full spectrum of solutions and building strong relationships as trusted advisors for clients [4] Company Overview - First Financial Bancorp is a Cincinnati-based bank holding company with $18.6 billion in assets, $11.8 billion in loans, $14.3 billion in deposits, and $2.4 billion in shareholders' equity as of December 31, 2024 [6] - The company operates 127 full-service banking centers in Ohio, Indiana, Kentucky, and Illinois, and its Commercial Finance business lends nationwide [6] - Wealth Management services include wealth planning, portfolio management, trust and estate, brokerage, and retirement plan services, with approximately $3.7 billion in assets under management as of December 31, 2024 [6]

Financial Data and Key Metrics Changes - The company announced its financial results for the fourth quarter and full year, with specific metrics to be discussed during the call [5]. Business Line Data and Key Metrics Changes - Detailed information regarding the performance of various business lines will be provided in the subsequent sections of the call [5]. Market Data and Key Metrics Changes - The company will address market performance and key metrics in relation to its operational environment during the call [5]. Company Strategy and Development Direction - The management will outline the company's strategic direction and competitive positioning within the industry [5]. Management Comments on Operating Environment and Future Outlook - Management will provide insights on the current operating environment and future prospects during the call [5]. Other Important Information - The company has made available a press release and accompanying slide presentation on its website for further details [3]. Q&A Session Summary Question: Inquiry about financial results - The management will respond to questions regarding the financial results and operational performance during the Q&A session [5].

Core Insights - First Financial Bancorp (FFBC) reported revenue of $225.53 million for the quarter ended December 2024, reflecting an 11.4% increase year-over-year and a surprise of +5.04% over the Zacks Consensus Estimate of $214.7 million [1] - Earnings per share (EPS) for the quarter was $0.71, compared to $0.62 in the same quarter last year, resulting in an EPS surprise of +9.23% against the consensus estimate of $0.65 [1] Financial Performance Metrics - Net Interest Margin stood at 3.9%, matching the average estimate based on two analysts [4] - Efficiency Ratio was reported at 66%, higher than the two-analyst average estimate of 58.7% [4] - Total Noninterest Income reached $69.85 million, exceeding the two-analyst average estimate of $63.55 million [4] Stock Performance - Shares of First Financial have returned +2% over the past month, compared to a +2.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance against the broader market in the near term [3]

Financial Performance - For Q4 2024, First Financial reported net income of $64.9 million, or $0.68 per diluted share, compared to $52.5 million, or $0.55 per diluted share in Q3 2024[3] - The return on average assets for Q4 2024 was 1.41%, and the return on average tangible common equity was 19.08%, up from 1.17% and 16.29% in Q3 2024, respectively[4] - For the full year 2024, adjusted earnings were $249 million, or $2.61 per share, with a record revenue of $853.8 million, a 2% increase over 2023[7] - Net income for the three months ended December 31, 2024, was $64,885 thousand, an increase from $52,451 thousand in the previous quarter, representing a 23.3% growth[22] - Diluted earnings per share increased to $0.68 for the three months ended December 31, 2024, compared to $0.55 in the previous quarter, reflecting a 23.6% rise[22] - Net income for the three months ended December 31, 2023, was $64,885 thousand, a 14.4% increase from $56,732 thousand in the same period of 2022[24] - Net income for the fourth quarter increased to $64,885,000, representing a 23.7% increase year-over-year[26] Loan and Deposit Growth - Total loans increased by $208.7 million, representing a 7.2% annualized growth rate, while average deposits surged by $543.1 million, or 15.7% on an annualized basis[5] - Total loans for the year increased by 7.6% to $11.8 billion, and total deposits rose by 7.2% to $14.3 billion[7] - Total deposits reached $14,339,653 thousand, an increase from $13,796,504 thousand in the previous quarter, indicating a 3.9% growth[22] - Total loans reached $11,761,778 thousand, reflecting a 1.8% increase compared to the prior quarter[30] - Total deposits grew to $14,329,138 thousand, marking a 2.7% increase from the previous quarter[30] - Total deposits rose to $14.34 billion, compared to $13.80 billion in the prior quarter, indicating a growth of approximately 4.0%[32] Asset Quality and Credit Losses - The total allowance for credit losses was $173.7 million, with a ratio to total loans of 1.33%, which declined by 4 basis points from Q3 2024[8] - Asset quality remained stable, with nonperforming assets flat at 0.36% and net charge-offs at 0.30% for the full year[7] - The allowance to ending loans ratio was 1.33% for the three months ended December 31, 2024, slightly down from 1.37% in the previous quarter[22] - The allowance for credit losses increased to $156,791 million as of December 31, 2024, compared to $141,433 million at the beginning of the year, reflecting a provision for credit losses of $49,211 million for the full year 2024[40] - Total net charge-offs for the full year 2024 were $33,853 million, a slight decrease from $34,618 million in 2023, with a net charge-off rate of 0.40% for the fourth quarter[40] - The total nonperforming assets amounted to $66,037 million, an increase from $65,859 million at the end of 2023[40] Noninterest Income and Expenses - Noninterest income reached $69.9 million, with a record wealth management income and strong results from foreign exchange and leasing businesses[6] - Noninterest income increased by 48.6% to $46,993 thousand for the three months ended December 31, 2023, compared to $31,610 thousand in the same period of 2022[24] - Total noninterest expenses rose by 24.1% to $147,907 thousand, up from $119,137 thousand in the prior year[24] - Total noninterest expenses rose to $147,907,000, marking a 17.6% increase compared to the previous quarter[26] Capital and Equity - The tangible book value per share increased from $12.38 to $14.15, marking a 14.3% increase[7] - The common equity tier 1 ratio was reported at 12.16% for the three months ended December 31, 2024, compared to 12.04% in the previous quarter[22] - Total shareholders' equity increased to $2,438,041,000 from $2,267,974,000 year-over-year, representing a growth of 7.5%[42] - Common equity tier 1 capital rose to $1,709,422,000, up from $1,568,815,000, reflecting an increase of 8.9%[42] - The leverage ratio improved to 9.98%, up from 9.70% in the previous year[42] Market Expansion and Strategy - First Financial expanded into Grand Rapids, MI, at the beginning of 2025, continuing its growth strategy in new markets[7] - The company plans to focus on market expansion and new product development in the upcoming quarters[32]