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]

INVESTOR PRESENTATION 4TH QUARTER 2025 Local banking is better than ever. FORWARD-LOOKING STATEMENTS We may, from time to time, make written or oral "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements contained in our filings with the Securities and Exchange Commission (the "SEC"), our reports to shareholders and in other communications by us. This Investor Presentation contains "forward-looking statements" with respect to the Company ...

Core Viewpoint - First Financial has received regulatory approval for its acquisition of BankFinancial, which is valued at approximately $142 million in an all-stock deal [1][2]. Group 1: Acquisition Details - The acquisition agreement allows BankFinancial shareholders to receive 0.48 shares of First Financial for each share they hold [1]. - The merger has been unanimously approved by the boards of directors of both companies and is expected to close by January 1, 2026, pending customary closing conditions and shareholder approval [2]. Group 2: Strategic Implications - This acquisition is aimed at expanding First Financial's presence in the Chicagoland area, where BankFinancial operates 18 financial centers [2]. - Upon completion, First Financial will take over BankFinancial's consumer and wealth management services, along with all its employees, and will add selected commercial credit lines to its existing operations [3]. Group 3: Recent Acquisitions - Last month, First Financial completed the acquisition of Westfield Bancorp and its subsidiary, Westfield Bank, in a cash-and-stock transaction valued at $325 million [4]. - The retail locations and services of Westfield Bank will operate under First Financial's network until the conversion process is completed, which is anticipated by March 2026 [4].

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]

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]