First Financial Bancorp Announces Second Quarter and Year to Date 2025 Financial Results & Quarterly Dividend Increase

• Earnings per diluted share of $0.73; $0.74 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.52%; 1.54% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 4.05%; 17 bp increase from first quarter
• Record quarterly revenue of $226.3 million
• TCE ratio increased to 8.40%; ROATCE of 20%
• Net charge-offs 0.21% as a percentage of total loans
• Board of Directors approved quarterly dividend increase to $0.25

CINCINNATI, July 24, 2025 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2025. 

For the three months ended June 30, 2025, the Company reported net income of $70.0 million, or $0.73 per diluted common share.  These results compare to net income of $51.3 million, or $0.54 per diluted common share, for the first quarter of 2025.  For the six months ended June 30, 2025, First Financial had earnings per diluted share of $1.27 compared to $1.17 for the same period in 2024.

Return on average assets for the second quarter of 2025 was 1.52% while return on average tangible common equity was 19.61%⁽¹⁾.  These compare to return on average assets of 1.13% and return on average tangible common equity of 15.16%⁽¹⁾ in the first quarter of 2025. 

Second quarter 2025 highlights include:

• Robust net interest margin of 4.01%, or 4.05% on a fully tax-equivalent basis⁽¹⁾
  • 17 bp increase from first quarter 
  • 12 bp decline in funding costs and 5 bp increase in asset yields
• Noninterest income of $68.1 million, or $67.8 million as adjusted⁽¹⁾ 
  • Adjustments include $0.2 million gain on sales of investment securities
  • Double digit percentage growth from linked quarter in mortgage and bankcard income
  • Strong leasing business income of $20.8 million, an increase of 11.2% from first quarter
  • Foreign exchange income increased $1.2 million, or 9.7% from first quarter
• Noninterest expenses of $128.7 million, or $127.6 million as adjusted⁽¹⁾; 0.8% increase from linked quarter
  • Second quarter adjustments⁽¹⁾ include $1.0 million of efficiency and acquisition related costs
  • Efficiency ratio of 56.9%; 56.4% as adjusted⁽¹⁾ 
• Loan growth during the quarter of 2% on an annualized basis
  • Loan balances increased $62.1 million compared to the linked quarter
  • Quarterly growth driven by C&I, Agile, Summit and Consumer; offsetting elevated prepayments in ICRE
• Average deposit growth of 3% on an annualized basis
  • Average deposit balances increased $114.1 million
  • Second quarter included $85 million seasonal increase in public funds
  • Growth in noninterest bearing deposits, retail CDs, and savings offset by declines in interest-bearing demand and money market balances

________________________________________________________________________________

⁽¹⁾ Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

• Total Allowance for Credit Losses of $175.7 million; Total quarterly provision expense of $9.8 million
  • Loans and leases - ACL of $158.5 million; ratio to total loans of 1.34%
  • Unfunded Commitments - ACL of $17.1 million
  • Provision expense driven by loan growth and net charge-offs
  • Annualized net charge-offs were 21 bps of total loans; 15 bp decline from linked quarter
  • Nonperforming assets increased 9 bps to 0.41% of total assets
• Capital ratios stable and strong 
  • Total capital ratio increased 8 bps to 14.98%
  • Tier 1 common equity increased 28 bps to 12.57% 
  • Tangible common equity of 8.40%⁽¹⁾; 9.81%⁽¹⁾ excluding impact from AOCI
  • Tangible book value per share of $15.40⁽¹⁾; 4% increase from linked quarter

Additionally, the Board of Directors approved a quarterly dividend of $0.25 per common share for the next regularly scheduled dividend, payable on September 15, 2025 to shareholders of record as of September 2, 2025.

Archie Brown, President and CEO, commented on the quarter, "I am thrilled with our performance this quarter.  We achieved record revenue of $226.3 million, which represents a 5% increase over the same quarter one year ago.  This drove adjusted⁽¹⁾ earnings per share of $0.74, an adjusted⁽¹⁾ return on assets of 1.54% and an adjusted⁽¹⁾ return on tangible common equity of 20%.  The Company's industry-leading profitability was once again driven by a robust net interest margin.  Loan growth was 2% on an annualized basis, and we were pleased with broad-based growth in most portfolios, with the exception of commercial real estate, which declined due to accelerated payoffs.  Payoffs have started to subside, and we expect higher loan growth in the second half of this year."

Mr. Brown continued, "We recorded adjusted⁽¹⁾ noninterest income of $67.8 million in the second quarter, which was an 11% increase over the linked quarter and a 10% increase over the second quarter of 2024.  Growth in fees was broad-based, with mortgage, bankcard income, leasing business income and Bannockburn all increasing by double-digit percentages over the linked quarter.  We were also pleased with our expense management, with adjusted⁽¹⁾ noninterest expenses increasing 1% compared to the first quarter.  Excluding leasing business expenses, which continue to increase as our operating lease portfolio grows, adjusted⁽¹⁾ noninterest expenses increased by less than 2% year over year." 

Mr. Brown commented on asset quality, "Asset quality was stable for the quarter.  Net charge-offs declined 15 basis points from the first quarter to 21 basis points of total loans and classified asset balances were relatively flat.  Our outlook for asset quality remains positive, and we expect net charge-offs to be in the 20-25 basis points range for the remainder of the year."

Mr. Brown discussed capital and an increase to the common dividend, "We are pleased with the strength of our capital levels.  Regulatory ratios are very strong and TCE has continued to grow, increasing 16% over the last year to 8.40%.  Tangible book value per share increased to $15.40, which was a 4% increase from the linked quarter and a 19% increase over the same period last year.  We are also pleased to announce that our Board of Directors approved a $0.01, or 4.2%, increase in the common dividend to $0.25.  The dividend payout remains approximately 35% of net income and continues to provide an attractive yield."  

Mr. Brown concluded, "We are excited about our recent announcement to acquire Westfield Bank in Northeast Ohio and are actively engaged in the integration process.   Appropriate applications have been filed with our regulators, and we continue to expect approval and closing to occur this year.  In summary, we are very pleased with our second quarter and year to date financial performance and remain very excited about our outlook for the remainder of 2025 and beyond."

Full detail of the Company's second quarter 2025 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information

First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, July 25, 2025 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068.  The number should be dialed five to ten minutes prior to the start of the conference call.  A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 (U.S. toll free), (609) 800-9099 (U.S. toll), access code 5048068.  The recording will be available until August 8, 2025.  The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at  www.bankatfirst.com.   The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on Website

This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com. 

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position.  Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Forward-Looking Statements

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements.  Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements.  Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

• economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
• future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
• the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
• Management's ability to effectively execute its business plans;
• mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
• the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
• the effect of changes in accounting policies and practices;
• changes in consumer spending, borrowing and saving and changes in unemployment;
• changes in customers' performance and creditworthiness;
• the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;  
• current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth;
• the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact  on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
• the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
• the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
• a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
• our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2024, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.   

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing.  Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  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.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.8 billion in assets under management as of June 30, 2025.  The Company operated 128 full service banking centers as of June 30, 2025, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis.  In 2025, First Financial Bank received its second consecutive Outstanding rating from the Federal Reserve for its performance under the Community Reinvestment Act and was recognized as a Gallup Exceptional Workplace Award winner, one of only 70 Gallup clients worldwide to receive this designation.  Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.