First Financial Bancorp.(US:FFBC)2025-10-23 20:17Financial 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].