Acquisitions and Mergers - First Financial Bancorp acquired Agile Premium Finance for $96.9 million in cash on February 29, 2024, enhancing its position in the insurance premium financing sector[37]. - The acquisition of Westfield Bancorp on November 1, 2025, involved a total purchase price of $324.4 million, including $260.0 million in cash and $64.4 million in common stock[40]. - Goodwill from the Westfield acquisition was recorded at $91.9 million, reflecting expected revenue growth from the expansion into insurance premium financing[43]. - BankFinancial Corporation, with approximately $1.4 billion in total assets, was set to merge into First Financial Bank effective January 1, 2026[45]. - The company regularly evaluates merger and acquisition opportunities, which may involve payment of premiums and potential dilution of tangible book value[179]. Employee Engagement and Wellbeing - As of December 31, 2025, First Financial had approximately 2,199 employees, primarily located in Ohio, Indiana, Kentucky, and Illinois[29]. - In 2025, approximately 60% of eligible employees participated in the Wellbeing Program, which promotes holistic health and engagement[30]. - First Financial's engagement strategy led to a significant increase in employee engagement, earning the Gallup Exceptional Workplace Award in 2025[33]. Financial Performance and Capital Management - The company incurred $5.8 million in expenses related to the Westfield acquisition for the year ended December 31, 2025[44]. - The company had indebtedness of $1.2 billion as of December 31, 2025, an increase from $1.1 billion in 2024, primarily due to balance sheet management strategies following the Westfield acquisition[154]. - The wealth management business had $3.9 billion in assets under management as of December 31, 2025, which is subject to market risks and volatility[171]. - The company recorded a provision expense of $36.5 million for loans and leases in 2025 due to net charge-offs and loan portfolio growth[134]. - The allowance for credit losses may prove insufficient, potentially affecting operating results and requiring additional provisions[131]. Regulatory Environment - The company operates under a comprehensive system of federal and state banking laws designed to protect consumers and promote the stability of the U.S. banking system[52]. - As a financial holding company, First Financial is subject to supervision by the Federal Reserve and must maintain certain capital adequacy standards[55]. - The Basel III capital rules require a minimum Common Equity Tier 1 capital ratio of 7.0%, a minimum Tier 1 Capital ratio of 8.5%, and a minimum total capital ratio of 10.5%[67]. - At December 31, 2025, the Bank met the capital ratio requirements to be deemed "well-capitalized" under regulatory guidelines[76]. - The Federal Reserve Board restricts dividend payments if they would cause the Bank to fail to meet minimum capital levels[80]. Competition and Market Position - First Financial's market strategy focuses on growth potential and long-term profitability in metropolitan and non-metropolitan areas, primarily in Ohio, Indiana, Kentucky, and Illinois[47]. - The company competes nationally through various subsidiaries, including Oak Street, First Franchise, Bannockburn, and Summit, providing specialized lending and financial services[48]. - The company believes it is well positioned to compete against larger banks due to its local decision-making process and diversified delivery systems[50]. - First Financial faces strong competition from local and regional financial institutions, credit unions, and FinTech companies, which may intensify for certain products and services[51]. - The company faces intense competition that could result in reduced margins and loss of business, particularly from non-banking financial institutions[162]. Economic and Market Risks - Economic conditions such as inflation, recession, and changes in interest rates may adversely affect deposit levels, loan demand, and borrowers' repayment ability[111]. - A decline in the strength of the U.S. economy could lead to increased loan defaults and a deterioration of credit quality[113]. - The bank's profitability may decline due to increased market volatility and changes in interest rates affecting net interest income[123]. - The bank's loan portfolio is significantly secured by real estate, which is sensitive to local and national market conditions[122]. - Changes in the secondary market for residential mortgage loans could limit liquidity and affect the value of collateral securing mortgage loans[126]. Cybersecurity and Operational Risks - The company employs a layered defensive approach to manage cybersecurity risks, which are expected to remain high due to evolving threats[106]. - Cybersecurity risks are heightened due to increased use of AI tools, which can lead to fraudulent activities and data breaches[147]. - The company has implemented a comprehensive cybersecurity program overseen by a Chief Information Security and Privacy Officer with over 25 years of experience[209]. - The company's cybersecurity risk management is continuously assessed and monitored under the Enterprise Risk Management framework[209]. - An ad hoc committee reviews third-party vendor risk management, including cybersecurity diligence for critical vendors[210]. Liquidity and Funding Risks - The Bank reported $7.4 billion in uninsured deposits as of December 31, 2025[86]. - The company is exposed to liquidity risks due to capital market operations, which require maintaining sufficient liquidity to meet obligations[139]. - Limitations on receiving dividends from subsidiaries could materially affect liquidity and the ability to pay dividends on common shares[153]. - Digital banking has accelerated deposit mobility, increasing liquidity risk as consumers may prefer alternative investments[156]. - The 2023 bank failures have negatively impacted depositor confidence, potentially affecting funding sources and financial condition[157]. Compliance and Legal Risks - The company is subject to various regulatory requirements that could impact operations, including capital adequacy and consumer protection laws[195]. - Compliance with data protection and privacy laws is critical, as non-compliance could lead to regulatory investigations and financial penalties[197]. - Legislative changes regarding information security and data privacy may increase compliance costs and impact financial condition[198]. - Proposed caps on interest rates for consumer credit products could reduce interest income and alter product economics[200]. External Factors and Future Outlook - Adverse external events, such as natural disasters or public health issues, could impact business operations and financial condition[207]. - Increasing scrutiny regarding environmental, social, and governance practices may impose additional costs and risks[202]. - Future legislative and regulatory changes may increase compliance costs and impact the bank's business activities[109].

Core Insights - The key event for First Financial Bancorp (FFBC) is the acquisition of BankFinancial, which has received regulatory approval from the Federal Reserve and the Ohio Department of Financial Institutions, expected to be completed around January 1, 2026 [1] Financial Performance - For Q4 2025, the company reported revenue of $228 million, representing a year-over-year increase of 24.47% [1] - The net income for the same period was $62.39 million, showing a decline of 3.84% year-over-year [1] - Earnings per share (EPS) stood at $0.80, reflecting a year-over-year growth of 12.68% [1]

Group 1 - The core focus of the news is the acquisition progress of BankFinancial by First Financial Bank, which was initially expected to be completed around January 1, 2026, but has now surpassed that date, raising market interest in the final completion status and future arrangements [1] - The acquisition has received approval from the Federal Reserve and the Ohio Department of Financial Institutions, and it is a stock transaction valued at approximately $142 million [1] Group 2 - In terms of stock performance, First Financial Bank's stock showed slight fluctuations over the past week, closing at $30.12 on February 12, 2026, with a daily decline of 1.08% [2] - Over the last five days, the stock has increased by 0.20%, with a price range fluctuation of 5.72% [2] - The trading volume was relatively active initially but decreased, with a trading volume of approximately $8.64 million on February 12, 2026, indicating a relatively quiet trading environment [2] - During the same period, the banking sector overall declined by 1.16%, while First Financial Bank's stock performance was slightly better than the sector average [2]

Core Viewpoint - The recent focus for First Financial Bank is the progress of its acquisition of BankFinancial, as the completion date has surpassed the original expectations, raising questions about the final outcome and subsequent arrangements [1]. Recent Events - First Financial Bank announced on December 15, 2025, that it has received regulatory approval from the Federal Reserve and the Ohio Department of Financial Institutions to complete the acquisition of BankFinancial. The acquisition is a stock transaction valued at approximately $142 million as of the signing date of the merger agreement [2]. - The company had previously anticipated that the transaction would be completed around January 1, 2026, depending on customary closing conditions and the approval of BankFinancial's shareholders [2].

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2025 were $0.80, with an adjusted return on assets of 1.52% and an adjusted return on tangible common equity of 20.3% [4][12] - The net interest margin slightly declined to 3.98% from 4.05% year-over-year, but funding costs decreased, mitigating the impact of short-term rate reductions [7][12] - Total adjusted fee income reached a record $77 million, a 5% increase from the previous quarter [5][14] - For the full year 2025, adjusted net income was $281 million, or $2.92 per share, with record revenue of nearly $922 million, an 8% increase over 2024 [6][7] Business Line Data and Key Metrics Changes - Loan growth for Q4 was 4% on an annualized basis, with total average deposits increasing by approximately 7% [4][9] - Non-interest income for the year increased by 16% to a record $280 million, driven by growth in wealth management, foreign exchange, and mortgage income [7][8] - Adjusted non-interest expenses increased by 6% from the linked quarter, primarily due to the Westfield acquisition [5][10] Market Data and Key Metrics Changes - The company maintained 21% of total balances in non-interest-bearing accounts, focusing on growing lower-cost deposit balances [10] - Total deposit balances increased by $2 billion, including $1.8 billion from the Westfield acquisition, with organic growth of $264 million [9][10] Company Strategy and Development Direction - The company plans to achieve organic loan growth of 6%-8% for the full year 2026, with expectations of easing payoff pressure in Q1 [16][17] - The company is expanding its presence in Grand Rapids, Michigan, with plans to establish a full banking office and add mortgage services [32][64] - The company aims to enhance its wealth management services in Northeast Ohio, following the acquisition of Westfield [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a strong net interest margin and expects it to remain among the highest in the peer group [16] - The company anticipates credit costs in Q1 to approximate Q4 levels, with stable allowance for credit losses coverage [17] - Management highlighted the successful launch of a new banking office and the acquisition of two banking companies as part of their growth strategy [18] Other Important Information - The company issued $300 million of subordinated debt during Q4, with a 10-year maturity and a 6.38% interest rate [10] - Asset quality remained stable, with non-performing assets slightly increasing to 0.48% of total assets [5][11] Q&A Session Summary Question: Fee income guidance for the rest of the year - Management acknowledged seasonality in fee income, particularly in foreign exchange, and expects growth in the latter half of the year [22][24] Question: Growth plans in Grand Rapids - Management detailed the ramp-up of loan commitments and deposit growth in Grand Rapids, with plans for further expansion [30][32] Question: Loan growth outlook - Management confirmed a projected organic loan growth of 6%-8% for the year, excluding acquired balances [38][41] Question: Margin outlook and purchase accounting - Management indicated that the margin would depend on short-term rate movements, with a slight decline expected if rate cuts occur [45][46] Question: Efficiency ratio trends - Management projected the efficiency ratio to be in the mid-50s range, influenced by the integration of recent acquisitions [70][75]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2025 were $0.80, with an adjusted return on assets of 1.52% and an adjusted return on tangible common equity of 20.3% [4] - The net interest margin slightly declined from the previous quarter but remained resilient at 3.98% [4][12] - Total average deposits increased by approximately 7% on an annualized basis, excluding the impact from the Westfield acquisition [4] - Adjusted net income for the full year 2025 was $281 million, or $2.92 per share, with record revenue of almost $922 million, an 8% increase over 2024 [6][7] Business Line Data and Key Metrics Changes - Total adjusted fee income for Q4 was $77 million, a 5% increase compared to the linked quarter, driven by strong performance in wealth management and foreign exchange [5][14] - Organic loan growth for Q4 was $131 million, or 4% on an annualized basis, primarily driven by Summit and C&I [9][12] - Adjusted non-interest income for the full year increased by 16% to a record $280 million, led by growth in wealth management, foreign exchange, and mortgage income [7] Market Data and Key Metrics Changes - The company maintained 21% of total balances in non-interest-bearing accounts, focusing on growing lower-cost deposit balances [10] - Total deposit balances increased by $2 billion in Q4, including $1.8 billion from the Westfield acquisition [9] Company Strategy and Development Direction - The company plans to achieve low single-digit organic loan growth in Q1 2026, with expectations of 6%-8% loan growth for the full year [16] - The company is focused on integrating the Westfield and BankFinancial acquisitions to realize cost savings and enhance growth opportunities [17][60] - Expansion efforts include launching a banking office in Grand Rapids and strengthening core funding through acquisitions [18][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and outlook for 2026, highlighting strong pipelines and expected loan growth [40][41] - The company anticipates that credit costs will approximate Q4 levels and that ACL coverage will remain stable as a percentage of loans [17] - Management noted the importance of seasonality in fee income and loan origination, with expectations for a ramp-up in the latter half of the year [25][40] Other Important Information - The company issued $300 million of subordinated debt during Q4, with a 10-year maturity and a 6.38% interest rate [10] - Asset quality remained stable, with non-performing assets slightly increasing to 0.48% of total assets [5][11] Q&A Session Summary Question: Fee income guidance for the rest of the year - Management acknowledged seasonality in fee income, particularly in foreign exchange, and expects growth in the latter half of 2026 [22][24] Question: Growth plans in Grand Rapids - Management detailed the establishment of a banking team and plans for further investment in the region, anticipating significant opportunities [30][32] Question: Loan growth outlook - Management confirmed a projected organic loan growth of 6%-8% for the year, excluding acquired balances, with expectations for a strong origination quarter in Q4 2025 [38][41] Question: Efficiency ratio trends - Management indicated that the efficiency ratio is expected to trend in the mid-50s range, influenced by the integration of acquisitions and seasonal factors [70][75]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2025 were $0.80, with an adjusted return on assets of 1.52% and an adjusted return on tangible common equity of 20.3% [4] - The net interest margin slightly declined to 3.98%, while total average deposits increased by approximately 7% on an annualized basis, excluding the impact from the Westfield acquisition [4][6] - For the full year 2025, adjusted net income was $281 million or $2.92 per share, with record revenue of almost $922 million, an 8% increase over 2024 [6] Business Line Data and Key Metrics Changes - Total adjusted fee income for Q4 was $77 million, a 5% increase compared to the linked quarter, driven by strong performance in wealth management and foreign exchange [5][9] - Non-interest expenses increased by 6% from the linked quarter, primarily due to the Westfield acquisition [5][12] - Adjusted non-interest income for the full year increased by 16% to a record $280 million, led by growth in wealth management, foreign exchange, and mortgage income [6] Market Data and Key Metrics Changes - Loan growth for Q4 was 4% on an annualized basis, with total deposit balances increasing by $2 billion, including $1.8 billion from the Westfield acquisition [8] - 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 organic loan growth to be in the 6%-8% range for the full year 2026, with a focus on integrating recent acquisitions and expanding in key markets [16][17] - The launch of a new banking office in Grand Rapids and the acquisition of two banking companies are part of the strategy to strengthen core funding and provide a platform for growth in metropolitan markets [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and outlook, anticipating easing payoff pressure and stable credit costs in the first quarter of 2026 [16] - The net interest margin is expected to remain among the highest in the peer group, projected to be between 3.94% and 3.99% over the next quarter [16] Other Important Information - The company issued $300 million of subordinated debt during Q4, with a 10-year maturity and a 6.38% interest rate [8] - Asset quality remained stable, with non-performing assets slightly increasing to 0.48% of assets [5][10] Q&A Session Summary Question: Fee income guidance for the rest of the year - Management acknowledged seasonality in fee income, particularly in foreign exchange, and expects growth in the back half of 2026 [21][24] Question: Growth plans in Grand Rapids - The company has ramped up loan commitments and is planning to establish a full banking office, adding mortgage and wealth banking services [28][30] Question: Loan growth outlook confirmation - Management confirmed that the projected 6%-8% growth is on an organic basis, excluding acquired balances [36][39] Question: Margin outlook and purchase accounting impact - The purchase accounting impact from Westfield is expected to hold at four basis points, with minimal impact from BankFinancial [40][41] Question: Efficiency ratio trends - The efficiency ratio is expected to be in the mid-50 range in the back half of the year, influenced by the integration of acquisitions [65][68]

Core Viewpoint - First Financial Bancorp (FFBC) reported a revenue increase of 6.4% year-over-year for the quarter ended December 2025, but fell short of Wall Street expectations [1] Financial Performance - Revenue for the quarter was $239.99 million, which was a surprise of -3.35% compared to the Zacks Consensus Estimate of $248.3 million [1] - Earnings per share (EPS) was reported at $0.80, an increase from $0.71 in the same quarter last year, resulting in an EPS surprise of +2.56% against the consensus estimate of $0.78 [1] - Net Interest Margin stood at 4%, matching the average estimate from three analysts [4] - Efficiency Ratio was reported at 62.6%, higher than the average estimate of 57.6% from three analysts [4] - Total Noninterest Income was $64.77 million, below the average estimate of $77.63 million from three analysts [4] - Net interest income (tax equivalent) was $175.22 million, slightly above the average estimate of $173 million from two analysts [4] Stock Performance - Shares of First Financial have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - First Financial Bancorp (FFBC) reported quarterly earnings of $0.8 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.71 per share a year ago, representing an earnings surprise of +2.56% [1] - The company posted revenues of $239.99 million for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 3.35%, compared to $225.53 million in the same quarter last year [2] - First Financial shares have increased approximately 9.1% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $251 million, and for the current fiscal year, it is $3.17 on revenues of $1.06 billion [7] - The Zacks Industry Rank for Banks - Midwest is in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - First Financial Corp. (THFF), another company in the same industry, is expected to report quarterly earnings of $1.71 per share, reflecting a year-over-year change of +24.8% [9]

Financial Performance - For Q4 2025, First Financial Bancorp reported net income of $62.4 million, or $0.64 per diluted share, compared to $71.9 million, or $0.75 per diluted share in Q3 2025[3] - The company achieved record revenue of $251.3 million on an adjusted basis, with noninterest income reaching $77.3 million, also a record[5] - Net income for the three months ended December 31, 2025, was $62,393 thousand, a decrease from $71,923 thousand in the previous quarter[24] - Diluted net earnings per share decreased to $0.64 from $0.75 in the previous quarter[24] - Net income for the twelve months ended December 31 was $255,605, with a net earnings per share (diluted) of $2.66[26] - Net income for the year was $228,830, with the fourth quarter reporting $64,885[31] Asset and Deposit Growth - Total assets increased to $20,256,539 thousand from $18,566,188 thousand in the previous quarter, reflecting a growth of approximately 9.1%[24] - Total deposits rose to $15,958,657 thousand, up from $14,511,925 thousand in the previous quarter, indicating a growth of about 10.0%[24] - Total assets increased to $21,129,379 thousand, a 13.9% increase from the previous quarter and a 13.8% increase year-over-year[33] - Total deposits rose to $16,421,842 thousand, marking a 13.8% increase from the previous quarter and a 14.6% increase year-over-year[33] Loan Performance - Loan balances increased by 4% on an annualized basis during the quarter, with end-of-period loan balances rising by $1.7 billion, including $1.6 billion from the Westfield acquisition[6] - Net loans reached $13,237,583 thousand, reflecting a 14.6% increase from the previous quarter and a 14.1% increase year-over-year[33] - Commercial and industrial loans increased to $4,632,241 thousand, a 20.7% increase from the previous quarter and a 21.4% increase year-over-year[33] Interest Income and Margin - The net interest margin was reported at 3.98% on a fully tax-equivalent basis, reflecting a 4 basis point decrease from Q3 2025[6] - Total interest income for the twelve months ended December 31 was $1,001,904, reflecting a 5.5% increase compared to the previous year[26] - Total interest income for Q4 2025 reached $265,331,000, reflecting a 6.0% increase from the previous quarter[28] Credit Quality and Allowance for Credit Losses - The total allowance for credit losses (ACL) stood at $206.7 million, with an ACL to total loans ratio of 1.39%[9] - The allowance for credit losses increased to $186,487 thousand, a 15.2% increase from the previous quarter and an 18.9% increase year-over-year[33] - The ratio of nonaccrual loans to total loans was 0.76%, compared to 0.65% in the previous quarter, indicating a deterioration in credit quality[41] Shareholder Returns - The Board of Directors approved a quarterly dividend of $0.25 per common share, payable on March 16, 2026[7] - The company declared dividends of $0.25 per share[26] - Dividends declared per share for the year were $0.94, with the fourth quarter at $0.24[31] Employee Metrics - Full-time equivalent employees increased to 2,164 compared to 2,064 in the previous year[26] - Full-time equivalent employees increased to 2,164, up from 1,986 in the previous quarter[28] Capital Ratios and Equity - Common equity tier 1 ratio decreased to 11.32% from 12.91% in the previous quarter[24] - Total shareholders' equity grew to $2,769,216 thousand, a 5.2% increase from the previous quarter and a 13.6% increase year-over-year[33] - Total capital ratio improved to 15.46%, up from 15.32% in the previous quarter, reflecting an increase of 0.9%[43]