[Part I - FINANCIAL INFORMATION](index=5&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Item 1 - Financial Statements](index=5&type=section&id=Item%201%20-%20Financial%20Statements) This section presents First Financial Bancorp's unaudited consolidated financial statements for Q2 and H1 2025, including balance sheets, income, and cash flow statements [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly increased to $18.63 billion, supported by investment securities and loans, with deposits and equity also growing Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$18,634,255** | **$18,570,261** | | Net loans and leases | $11,627,674 | $11,604,987 | | Investment securities (AFS & HTM) | $3,459,556 | $3,260,736 | | Goodwill | $1,007,656 | $1,007,656 | | **Total Liabilities** | **$16,076,100** | **$16,132,220** | | Total deposits | $14,369,993 | $14,329,138 | | Total borrowed funds | $1,029,654 | $1,102,961 | | **Total Shareholders' Equity** | **$2,558,155** | **$2,438,041** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased for Q2 and H1 2025, driven by higher net interest and noninterest income and lower credit loss provisions Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $158,269 | $153,311 | $307,565 | $302,051 | | Provision for Credit Losses | $9,802 | $16,443 | $18,502 | $27,603 | | Noninterest Income | $68,063 | $61,501 | $119,146 | $108,013 | | Noninterest Expense | $128,671 | $123,574 | $256,747 | $245,929 | | **Net Income** | **$69,996** | **$60,805** | **$121,289** | **$111,494** | | **Diluted EPS** | **$0.73** | **$0.64** | **$1.27** | **$1.17** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed disclosures cover accounting policies, investment and loan portfolios, credit loss allowance, goodwill, borrowings, and business combinations [Note 3: Investments](index=14&type=section&id=Note%203%3A%20Investments) The investment portfolio, primarily AFS securities at $3.39 billion, saw sales with net losses, but unrealized losses are due to market rates Investment Securities Summary as of June 30, 2025 (in thousands) | Category | Amortized Cost | Fair Value | | :--- | :--- | :--- | | **Available-for-Sale (AFS)** | **$3,664,424** | **$3,386,562** | | Mortgage-backed securities - residential | $1,220,107 | $1,140,315 | | Obligations of state and political subdivisions | $609,001 | $493,212 | | **Held-to-Maturity (HTM)** | **$72,994** | **$66,244** | - For the six months ended June 30, 2025, the company sold **$164.5 million** of AFS securities, realizing gross gains of **$0.1 million** and gross losses of **$10.0 million**[33](index=33&type=chunk) - As of June 30, 2025, the AFS portfolio had gross unrealized losses of **$289.4 million**, primarily concentrated in securities held for 12 months or more, which management attributes to market yield fluctuations rather than credit issues[44](index=44&type=chunk) [Note 4: Loans and Leases](index=17&type=section&id=Note%204%3A%20Loans%20and%20Leases) Total loans increased slightly to $11.79 billion, with diversified categories; total delinquency decreased, but nonaccrual loans rose Loan Portfolio Composition (in thousands) | Loan Category | June 30, 2025 | % of Total | | :--- | :--- | :--- | | Commercial & industrial | $3,927,771 | 33.3% | | Commercial real estate | $3,961,513 | 33.6% | | Residential real estate | $1,492,688 | 12.7% | | Home equity | $903,299 | 7.7% | | Lease financing | $587,176 | 5.0% | | Other | $912,549 | 7.7% | | **Total Loans & Leases** | **$11,786,196** | **100.0%** | - Total past due loans (30+ days) decreased to **$55.2 million** at June 30, 2025, from **$72.7 million** at December 31, 2024[57](index=57&type=chunk) - Nonaccrual loans increased to **$76.9 million** as of June 30, 2025, up from **$66.0 million** at December 31, 2024, with the increase primarily in Commercial & Industrial loans[65](index=65&type=chunk) [Note 5: Allowance for Credit Losses](index=26&type=section&id=Note%205%3A%20Allowance%20for%20Credit%20Losses) ACL for loans and leases increased to $158.5 million (1.34% of loans), with lower provision expense but higher net charge-offs ACL Roll-Forward for Loans & Leases - Six Months Ended June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | $156,791 | | Provision for credit losses | $18,225 | | Gross charge-offs | ($18,840) | | Recoveries | $2,346 | | **Ending Balance (June 30, 2025)** | **$158,522** | - The ACL as a percentage of total loans was **1.34%** at June 30, 2025, compared to **1.33%** at December 31, 2024[286](index=286&type=chunk) - The ACL for unfunded commitments was **$17.1 million** as of June 30, 2025, with a related provision expense of **$0.3 million** for the first six months of 2025[94](index=94&type=chunk) [Note 18: Business Combinations](index=53&type=section&id=Note%2018%3A%20Business%20Combinations) The company announced a $325.0 million acquisition of Westfield Bancorp and completed the Agile Premium Finance acquisition for $96.9 million - On June 23, 2025, First Financial entered an agreement to acquire Westfield Bancorp, Inc. for a total purchase price of **$325.0 million** (**$260.0 million** cash and **$65.0 million** in stock)[205](index=205&type=chunk)[206](index=206&type=chunk) - The acquisition of Agile Premium Finance was completed on February 29, 2024, for **$96.9 million** in cash, adding a national insurance premium financing business[209](index=209&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 net income of $70.0 million, highlighting net interest income growth, asset quality, liquidity, and capital [Overview of Operations](index=57&type=section&id=Overview%20of%20Operations) Q2 2025 net income rose to $70.0 million ($0.73 diluted EPS), showing strong improvements in key performance ratios like ROAA and ROATCE Quarterly Performance Summary | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $69,996 | $51,293 | | Diluted EPS | $0.73 | $0.54 | | Return on Average Assets | 1.52% | 1.13% | | Return on Average Tangible Shareholders' Equity | 19.61% | 15.16% | [Net Interest Income](index=59&type=section&id=Net%20Interest%20Income) Net interest income for Q2 2025 increased by 6.0% to $158.3 million, with net interest margin expanding to 4.05% due to improved yields - Net interest income increased by **$9.0 million**, or **6.0%**, from the first quarter of 2025[242](index=242&type=chunk) - The net interest margin (FTE) increased by **17 basis points** to **4.05%** in Q2 2025 compared to Q1 2025, as asset yields rose and funding costs declined[242](index=242&type=chunk) [Asset Quality and Allowance for Credit Losses](index=67&type=section&id=Asset%20Quality%20and%20Allowance%20for%20Credit%20Losses) Asset quality stable despite nonaccrual loan increase to $76.9 million; total ACL is $175.7 million, with lower Q2 net charge-offs - Nonaccrual loans increased by **$11.0 million** to **$76.9 million** (**0.65%** of total loans) at June 30, 2025[279](index=279&type=chunk) - Classified assets decreased to **$214.3 million** (**1.15%** of total assets) from **$224.1 million** at year-end 2024[280](index=280&type=chunk) Net Charge-offs (in thousands) | Period | Amount | % of Average Loans (Annualized) | | :--- | :--- | :--- | | Q2 2025 | $6,044 | 0.21% | | Q1 2025 | $10,450 | 0.36% | | Six Months 2025 | $16,494 | 0.28% | | Six Months 2024 | $14,824 | 0.27% | [Liquidity and Capital](index=70&type=section&id=Liquidity%20and%20Capital) Strong liquidity with $5.2 billion unused funding; capital ratios improved, remaining above minimums, and dividend increased to $0.25 - The company had unused and available overnight wholesale funding sources of **$5.2 billion**, or **28.0%** of total assets, as of June 30, 2025[310](index=310&type=chunk) Key Capital Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Common Equity Tier 1 | 12.57% | 12.16% | | Tier 1 Capital | 12.89% | 12.48% | | Total Capital | 14.98% | 14.64% | | Leverage Ratio | 10.28% | 9.98% | | Tangible Common Equity | 8.40% | 7.73% | - The Board of Directors authorized a dividend increase to **$0.25** per common share, payable in September 2025[322](index=322&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures about Market Risk](index=78&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's asset-sensitive position indicates net interest income will increase in a rising rate environment, with a +100 bps shock yielding 3.13% NII growth Interest Rate Sensitivity Analysis (as of June 30, 2025) | Rate Shock Scenario | % Change in NII (Year 1) | % Change in EVE | | :--- | :--- | :--- | | +200 bps | 4.81% | 1.86% | | +100 bps | 3.13% | 1.16% | | -100 bps | (4.77)% | (2.52)% | - The company manages interest rate risk through its **Balance Sheet Strategies and Asset Liability Committee (ALCO)**, using **income simulation and Economic Value of Equity (EVE) models**[332](index=332&type=chunk)[333](index=333&type=chunk) [Item 4 - Controls and Procedures](index=78&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of June 30, 2025[355](index=355&type=chunk) - **No changes occurred** during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[356](index=356&type=chunk) [Part II - OTHER INFORMATION](index=79&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Item 1 & 1A - Legal Proceedings and Risk Factors](index=79&type=section&id=Item%201%20%26%201A%20-%20Legal%20Proceedings%20and%20Risk%20Factors) No material changes to legal proceedings or risk factors were reported since the 2024 Annual Report on Form 10-K filing - There have been **no material changes** to legal proceedings or risk factors since the 2024 Form 10-K filing[358](index=358&type=chunk)[359](index=359&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the 2024 Stock Repurchase Plan during Q2 2025, leaving the 5,000,000 share authorization fully available - **No shares were repurchased** in the second quarter of 2025 under the 2024 Stock Repurchase Plan[360](index=360&type=chunk)

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Financial Data and Key Metrics Changes - The company achieved record revenue of $226.3 million, a 5% increase year-over-year [4] - Adjusted earnings per share were $0.74, with a return on assets of 1.54% and a return on tangible common equity of 20% [4][15] - Net interest margin increased to 4.05%, a 17 basis point increase from the previous quarter [10][15] - Adjusted noninterest income rose to $67.8 million, an 11% increase from the linked quarter and a 10% increase year-over-year [5][19] - Adjusted noninterest expenses increased by 1% compared to the first quarter [6] Business Line Data and Key Metrics Changes - Loan growth was 2% on an annualized basis, with broad-based growth in most portfolios except for commercial real estate, which declined due to higher payoffs [5][10] - Average deposit balances increased by $114 million, primarily due to a seasonal influx in public funds and higher noninterest-bearing deposits [11][16] - Noninterest income was led by double-digit growth in mortgage and bank card income, with leasing and foreign exchange businesses also performing well [12][19] Market Data and Key Metrics Changes - The company maintained 21% of total balances in noninterest-bearing accounts, focusing on growing lower-cost deposit balances [11] - Adjusted uninsured deposits were $3.8 billion, equating to 27% of total deposits, with the company comfortable with this concentration [18] Company Strategy and Development Direction - The company is focused on expense management, with adjusted noninterest expenses increasing slightly due to marketing and incentive compensation [12][19] - The Board of Directors approved a $0.01 increase in the common dividend to $0.25, maintaining a payout ratio of approximately 35% of net income [8][14] - The company announced plans to acquire Westfield Bank in Northeast Ohio, with expectations for approval and closing to occur this year [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in the second half of the year, expecting easing payoff pressures and higher production [22] - For Q3, loan growth is expected to be in the low to mid-single digits on an annualized basis, with net interest margin anticipated to remain strong [23] - Credit costs are expected to approximate prior quarter levels, with charge-offs projected to be in the 20 to 25 basis point range [23] Other Important Information - Asset quality remained stable, with net charge-offs declining to 21 basis points of total loans [6][21] - The tangible common equity ratio increased to 8.4%, with tangible book value per share rising to $15.4, a 4% increase from the linked quarter [7][14] Q&A Session Summary Question: On the margin and funding side - Management indicated that deposit costs are expected to decrease slightly, with a potential rate cut in September impacting future costs [29][30] Question: Impact of payoffs on loan growth - Management noted that while payoffs have affected growth, they expect a return to more normalized growth rates in the future [38][39] Question: Asset quality concerns - Management addressed an increase in nonaccruals due to downgrades of two commercial borrowers, with expectations for resolution by year-end [44][46] Question: Loan growth consistency - Management confirmed consistent growth in consumer and commercial loans, with expectations for stronger performance in the second half of the year [58][60]

Financial Data and Key Metrics Changes - The company achieved record revenue of $226.3 million, a 5% increase year-over-year, with adjusted earnings per share of $0.74, a return on assets of 1.54%, and a return on tangible common equity of 20% [4][5][14] - The net interest margin increased to 4.05%, a 17 basis point increase from the previous quarter, while funding costs declined by 12 basis points [9][10][14] - Adjusted noninterest income was $67.8 million, an 11% increase from the previous quarter and a 10% increase year-over-year [5][17] Business Line Data and Key Metrics Changes - Loan growth was 2% on an annualized basis, with broad-based growth in most portfolios except for commercial real estate, which declined due to higher payoffs [5][15] - Noninterest income growth was driven by double-digit increases in mortgage, bank card, leasing, and foreign exchange income [5][11] - Adjusted noninterest expenses increased by 1% compared to the first quarter, with core expenses rising primarily due to higher incentive compensation and marketing expenses [6][17] Market Data and Key Metrics Changes - Average deposit balances increased by $114 million, primarily due to a seasonal influx in public funds and higher noninterest-bearing deposits [10][15] - The company maintained 21% of total balances in noninterest-bearing accounts, focusing on growing lower-cost deposit balances [10][15] - Adjusted uninsured deposits were $3.8 billion, representing 27% of total deposits, with a comfortable concentration level [16] Company Strategy and Development Direction - The company expects loan growth in the low to mid-single digits for the third quarter, with a strong loan pipeline and easing payoff pressures anticipated [21][22] - The Board of Directors approved a 4.2% increase in the common dividend to $0.25, reflecting the company's commitment to delivering shareholder value [7][20] - The company is actively engaged in the integration process following the announcement of the acquisition of Westfield Bank, expecting regulatory approval and closing within the year [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about asset quality, expecting net charge-offs to remain in the 20 to 25 basis points range for the remainder of the year [6][22] - The company anticipates continued strong performance in the second half of 2025, driven by solid loan production and effective expense management [21][23] - Management highlighted ongoing efficiency initiatives aimed at improving processes and reducing costs across the organization [36] Other Important Information - The company recorded a decline in net charge-offs to 21 basis points of total loans, with stable asset quality trends [6][12] - Tangible common equity increased to 8.4%, with tangible book value per share rising to $15.4, a 4% increase from the previous quarter [7][19] Q&A Session Summary Question: Outlook on funding costs and deposit rates - Management indicated that deposit costs are expected to decrease slightly, with a potential rate cut in September influencing future costs [28][29] Question: Impact of seasonal deposit outflows - Seasonal deposit outflows are expected to average around $100 million, primarily related to public funds [32] Question: Efficiency initiatives and cost-cutting focus - The company is reviewing all functions and departments to improve processes and drive operating leverage, with significant progress made [35][36] Question: Loan growth normalization excluding payoffs - Management anticipates long-term loan growth of 6% to 7%, with expectations for improved production in the upcoming quarters [38][39] Question: Asset quality concerns and nonaccruals - A quarter-over-quarter increase in nonperforming assets was attributed to downgrades of two commercial borrowers, with expectations for resolution by year-end [44][46] Question: Integration of Westfield Bank and asset sensitivity - The acquisition is expected to slightly improve asset sensitivity, bringing the company closer to a neutral position [47][50]

Core Insights - First Financial Bancorp (FFBC) reported revenue of $227.58 million for the quarter ended June 2025, reflecting a year-over-year increase of 5.3% [1] - Earnings per share (EPS) for the quarter was $0.74, up from $0.65 in the same quarter last year, surpassing the consensus estimate of $0.69 by 7.25% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $219.8 million, resulting in a revenue surprise of 3.54% [1] Financial Metrics - Net Interest Margin was reported at 4%, matching the average estimate from two analysts [4] - Efficiency Ratio stood at 56.9%, better than the average estimate of 57.6% from two analysts [4] - Total Noninterest Income reached $68.06 million, exceeding the average estimate of $64.6 million from two analysts [4] Stock Performance - Over the past month, shares of First Financial have returned +1%, while the Zacks S&P 500 composite has increased by +5.7% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance against the broader market in the near term [3]

分组1 - First Financial Bancorp (FFBC) reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and up from $0.65 per share a year ago, representing an earnings surprise of +7.25% [1] - The company posted revenues of $227.58 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.54%, compared to year-ago revenues of $216.23 million [2] - First Financial has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates two times as well [2] 分组2 - The stock has underperformed the market, losing about 9.5% since the beginning of the year, while the S&P 500 gained 8.1% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.68 for the coming quarter and $2.63 for the current fiscal year [7] - The Zacks Industry Rank for Banks - Midwest is currently in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

[Financial Results Announcement](index=1&type=section&id=First%20Financial%20Bancorp%20Announces%20Second%20Quarter%20and%20Year%20to%20Date%202025%20Financial%20Results%20%26%20Quarterly%20Dividend%20Increase) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) First Financial Bancorp achieved record Q2 2025 revenue, with significant sequential growth in net income, EPS, and key profitability metrics Q2 2025 Key Performance Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $70.0 million | $51.3 million | | Diluted EPS | $0.73 | $0.54 | | Adjusted Diluted EPS | $0.74 | - | | Return on Average Assets (ROA) | 1.52% | 1.13% | | Return on Average Tangible Common Equity (ROATCE) | 19.61% | 15.16% | - Achieved record quarterly revenue of **$226.3 million**[4](index=4&type=chunk) - Net interest margin (FTE basis) expanded by **17 basis points** from the first quarter to **4.05%**, driven by a **12 bp** decline in funding costs and a **5 bp** increase in asset yields[4](index=4&type=chunk)[5](index=5&type=chunk) - Noninterest income showed strong growth, with mortgage and bankcard income increasing by **double-digit percentages** from the linked quarter, while leasing business income grew **11.2%** and foreign exchange income grew **9.7%** sequentially[5](index=5&type=chunk) - Loan balances grew by **2%** on an annualized basis, while average deposit balances increased by **3%** annualized during the quarter[5](index=5&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) CEO Archie Brown highlighted record revenue, strong profitability, stable asset quality, and expected higher loan growth in H2 2025, with the Westfield Bank acquisition on track - Record revenue of **$226.3 million** represents a **5%** increase over the same quarter one year ago[7](index=7&type=chunk) - Loan growth was **2%** annualized, with an expectation for higher growth in the second half of the year as commercial real estate loan payoffs subside[7](index=7&type=chunk) - Asset quality was stable, with net charge-offs declining to **21 basis points**, and the outlook for asset quality remains positive, with net charge-offs expected to be in the **20-25 basis point range** for the remainder of the year[7](index=7&type=chunk) - The company is actively engaged in the integration process for the acquisition of Westfield Bank and expects the transaction to close in **2025**[7](index=7&type=chunk) [Dividend and Capital](index=2&type=section&id=Dividend%20and%20Capital) The Board approved a **4.2%** increase in the quarterly common dividend to **$0.25** per share, strengthening capital with a rising TCE ratio and **19%** YoY increase in Tangible Book Value per share - The Board of Directors approved a quarterly dividend increase of **$0.01**, or **4.2%**, to **$0.25** per common share, payable on **September 15, 2025**[6](index=6&type=chunk)[7](index=7&type=chunk) - The dividend payout ratio is approximately **35%** of net income[7](index=7&type=chunk) Capital Position Highlights | Metric | Q2 2025 | Change from Q1 2025 | | :--- | :--- | :--- | | Tangible Common Equity (TCE) Ratio | 8.40% | - | | Tangible Book Value Per Share | $15.40 | +4% | | Total Capital Ratio | 14.98% | +8 bps | | Tier 1 Common Equity Ratio | 12.57% | +28 bps | [Company Overview and Forward-Looking Statements](index=3&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) First Financial Bancorp, a Cincinnati-based bank holding company with **$18.6 billion** in assets as of June 30, 2025, provides an overview and disclaimers on non-GAAP measures and forward-looking statements - As of June 30, 2025, the Company had **$18.6 billion** in assets, **$11.8 billion** in loans, **$14.4 billion** in deposits, and **$2.6 billion** in shareholders' equity[16](index=16&type=chunk) - The company operates **128** full-service banking centers in Ohio, Indiana, Kentucky, and Illinois[16](index=16&type=chunk) - The report contains forward-looking statements that are subject to inherent risks and uncertainties, including economic, market, credit, and regulatory risks[12](index=12&type=chunk)[13](index=13&type=chunk) [Selected Financial Information](index=5&type=section&id=Selected%20Financial%20Information) [Consolidated Financial Highlights](index=6&type=section&id=Consolidated%20Financial%20Highlights) Consolidated financial highlights for Q2 2025 show strong performance with **$70.0 million** net income and **$0.73** diluted EPS, significantly improving from Q1 2025, and robust capital ratios Quarterly Performance Comparison | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $69,996 | $51,293 | $60,805 | | Diluted EPS | $0.73 | $0.54 | $0.64 | | Return on Average Assets | 1.52% | 1.13% | 1.38% | | Return on Average Tangible Equity (Non-GAAP) | 19.61% | 15.16% | 20.57% | | Net Interest Margin (FTE) | 4.05% | 3.88% | 4.10% | | Tangible Book Value Per Share (Non-GAAP) | $15.40 | $14.80 | $12.94 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net income reached **$70.0 million**, a **36.5%** sequential increase, driven by a **6.0%** rise in net interest income and a **33.2%** surge in noninterest income, with noninterest expenses well-controlled Income Statement Summary (in thousands) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $158,269 | $149,296 | $153,311 | | Provision for Credit Losses | $9,802 | $8,700 | $16,443 | | Noninterest Income | $68,063 | $51,083 | $61,501 | | Noninterest Expenses | $128,671 | $128,076 | $123,574 | | **Net Income** | **$69,996** | **$51,293** | **$60,805** | - Total interest income increased **2.3%** sequentially, while total interest expense decreased **3.8%**, leading to a **6.0%** increase in net interest income[26](index=26&type=chunk) - The **33.2%** sequential increase in noninterest income was primarily due to a **54.7%** rise in net gains from sales of loans and a significant positive swing in net gain/loss on investment securities compared to Q1 2025[26](index=26&type=chunk) [Consolidated Statements of Condition](index=10&type=section&id=Consolidated%20Statements%20of%20Condition) As of June 30, 2025, total assets reached **$18.6 billion** (**1.0%** increase), with loans growing **0.5%** to **$11.8 billion**, deposits increasing **1.2%** to **$14.4 billion**, and shareholders' equity rising **2.3%** to **$2.6 billion** Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Mar. 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $18,634,255 | $18,455,067 | $18,166,180 | | Net Loans | $11,627,674 | $11,568,648 | $11,365,018 | | Total Deposits | $14,369,993 | $14,196,956 | $13,661,922 | | Total Shareholders' Equity | $2,558,155 | $2,501,235 | $2,326,439 | - Loan growth from the linked quarter was driven by Commercial & Industrial and Home Equity loans, offsetting a decline in Construction real estate loans[31](index=31&type=chunk) - The increase in total deposits was supported by growth in interest-bearing demand, savings, and time deposits[31](index=31&type=chunk) [Net Interest Margin Analysis](index=12&type=section&id=Net%20Interest%20Margin%20Analysis) Q2 2025 net interest margin (FTE) expanded by **17 basis points** to **4.05%**, a significant improvement from Q1 2025, primarily driven by a decrease in funding costs to **2.90%** Net Interest Margin and Component Yields | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Yield on Earning Assets | 6.24% | 6.19% | 6.68% | | Cost of Interest-Bearing Liabilities | 2.90% | 3.04% | 3.42% | | Net Interest Spread | 3.34% | 3.15% | 3.26% | | **Net Interest Margin** | **4.01%** | **3.84%** | **4.06%** | - The cost of total interest-bearing deposits decreased by **16 basis points** sequentially to **2.70%**[35](index=35&type=chunk) - The linked quarter income variance analysis shows that changes in interest rates contributed a positive **$5.5 million** to net interest income, while volume changes contributed a positive **$3.4 million**[37](index=37&type=chunk) [Credit Quality](index=14&type=section&id=Credit%20Quality) Credit quality remained stable in Q2 2025, with annualized net charge-offs decreasing significantly to **0.21%**, nonperforming assets slightly increasing to **0.41%**, and allowance for credit losses consistent at **1.34%** Key Credit Quality Ratios | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Charge-offs to Avg. Loans (Annualized) | 0.21% | 0.36% | 0.15% | | Nonperforming Assets to Total Assets | 0.41% | 0.32% | 0.35% | | Allowance for Credit Losses to Total Loans | 1.34% | 1.33% | 1.36% | - Total net charge-offs for the quarter were **$6.0 million**, a decrease from **$10.5 million** in Q1 2025[39](index=39&type=chunk) - Total nonaccrual loans increased to **$76.9 million** from **$59.6 million** in the linked quarter, while classified assets remained relatively flat at **$214.3 million**[39](index=39&type=chunk) [Capital Adequacy](index=15&type=section&id=Capital%20Adequacy) The company maintained a strong capital position as of June 30, 2025, with all regulatory capital ratios improving and remaining well above minimum requirements, including a preliminary Common Equity Tier 1 ratio of **12.57%** Regulatory Capital Ratios (Preliminary) | Ratio | June 30, 2025 | Mar. 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 Ratio | 12.57% | 12.29% | 11.78% | | Tier 1 Ratio | 12.89% | 12.61% | 12.11% | | Total Capital Ratio | 14.98% | 14.90% | 14.47% | | Leverage Ratio | 10.28% | 10.01% | 9.73% | - The company did not repurchase any shares under its publicly announced repurchase program during the three or six months ended June 30, 2025[41](index=41&type=chunk)

Core Viewpoint - First Financial Bancorp reported strong financial results for the second quarter of 2025, with significant increases in net income, revenue, and profitability metrics compared to previous periods [2][5][7]. Financial Performance - For the three months ended June 30, 2025, the company reported net income of $70.0 million, or $0.73 per diluted common share, compared to $51.3 million, or $0.54 per diluted common share in the first quarter of 2025 [2][17]. - The company achieved record revenue of $226.3 million, representing a 5% increase over the same quarter one year ago [5]. - Adjusted earnings per share for the second quarter were $0.74, with a return on average assets of 1.52% and a return on average tangible common equity of 19.61% [7][19]. Asset Quality and Loan Growth - Asset quality remained stable, with net charge-offs declining to 0.21% of total loans, a 15 basis point decrease from the first quarter [5][8]. - Loan growth was reported at 2% on an annualized basis, with broad-based growth in most portfolios, except for commercial real estate [5][8]. Noninterest Income and Expenses - Adjusted noninterest income for the second quarter was $67.8 million, an 11% increase over the linked quarter and a 10% increase over the second quarter of 2024 [5][8]. - Noninterest expenses increased by 1% compared to the first quarter, with adjusted noninterest expenses rising by less than 2% year over year [5][8]. Capital and Dividends - The company’s tangible common equity ratio increased to 8.40%, with tangible book value per share rising to $15.40, a 4% increase from the linked quarter [5][8]. - The Board of Directors approved a quarterly dividend of $0.25 per common share, reflecting a 4.2% increase [4][5]. Future Outlook - The company is optimistic about future loan growth in the second half of 2025 and is actively engaged in the integration process following the announcement of the acquisition of Westfield Bank [5][8].

Group 1 - First Financial Bancorp. will release its second quarter 2025 financial results on July 24, 2025, after market close [1] - A teleconference and webcast to discuss the financial results will take place on July 25, 2025, at 8:30 a.m. Eastern time [1] - 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 as of March 31, 2025 [2] Group 2 - First Financial Bancorp. operates through six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance, and Wealth Management [2] - The Wealth Management division had approximately $3.7 billion in assets under management as of March 31, 2025 [2] - The company operated 127 full-service banking centers across Ohio, Indiana, Kentucky, and Illinois as of March 31, 2025 [2]

Summary of First Financial Bancorp (FFBC) Conference Call on Acquisition of Westfield Bancorp Company and Industry - **Company**: First Financial Bancorp (FFBC) - **Acquisition Target**: Westfield Bancorp - **Industry**: Banking and Financial Services Core Points and Arguments 1. **Acquisition Announcement**: FFBC announced the acquisition of Westfield Bancorp from Ohio Farmers Insurance Company, enhancing its presence in the Cleveland, Ohio market [2][3] 2. **Financial Impact**: The acquisition will more than triple FFBC's loan commitments in Northeast Ohio to approximately $1.5 billion and add $1.5 billion in local deposits [3][4] 3. **Branch Network and Talent**: The deal provides FFBC with a highly efficient branch network and talent across multiple business lines, positioning it as a premium alternative to larger banks [3][4] 4. **Earnings Accretion**: The acquisition is financially attractive with strong earnings accretion and a tangible book value earn back within acceptable parameters [4][8] 5. **Asset Quality**: Westfield has a strong record regarding asset quality, with net charge-offs averaging four basis points over the last five years, aligning with FFBC's lending and credit administration approach [5][6] 6. **Market Position**: Post-acquisition, FFBC will become the fourth largest Ohio-based banking company and the only community bank among the top eight banks in the state [6][8] 7. **Transaction Structure**: The transaction is structured as approximately 80% cash and 20% stock, with shareholder approval from Ohio Farmers already received [7][8] 8. **Future Growth Opportunities**: FFBC anticipates significant growth opportunities in consumer lending, wealth management, and specialty banking post-acquisition [10][49] Additional Important Content 1. **Cultural Compatibility**: Both companies share a strong commitment to associates, clients, and communities, which is expected to facilitate the integration process [5][6] 2. **Cost Savings and Renovations**: Initial branch renovations are estimated at $800,000, with plans for branding refreshes post-merger [17][18] 3. **NIM Strategy**: FFBC aims to rebuild the net interest margin (NIM) to around 4% by remixing acquired loans and enhancing commercial product offerings [19][20] 4. **Credit Quality**: The acquisition is expected to slightly improve charge-off rates due to Westfield's strong credit history [41][42] 5. **Future Acquisition Appetite**: FFBC remains open to future acquisitions, depending on size and timing, while maintaining a target tangible common equity (TCE) ratio of 7.5% [30][54] 6. **CECL Adoption**: The impact of the new CECL accounting standard is currently uncertain, but it is not expected to significantly affect the acquisition due to Westfield's clean credit profile [61][62] This summary encapsulates the key points discussed during the conference call regarding the acquisition of Westfield Bancorp by First Financial Bancorp, highlighting the strategic, financial, and operational implications of the deal.