First Financial Bancorp Announces First Quarter 2026 Financial Results

• Earnings per diluted share of $0.71; $0.77 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.34%; 1.45% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 3.99%
• Record quarterly revenue of $265.3 million on an adjusted⁽¹⁾ basis
• Noninterest income of $75.6 million on an adjusted⁽¹⁾ basis
• $150 million of subordinated debt redeemed
• ROTCE of 17.8%; 19.2% on adjusted⁽¹⁾ basis
• 2^nd consecutive Gallup Exceptional Workplace Award for outstanding associate engagement
• BankFinancial acquisition closed January 1, 2026
• Board of Directors authorized 5,000,000 share repurchase plan

CINCINNATI, April 23, 2026 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2026. 

For the three months ended March 31, 2026, the Company reported net income of $74.4 million, or $0.71 per diluted common share.  These results compare to net income of $62.4 million, or $0.64 per diluted common share, for the fourth quarter of 2025.

Return on average assets for the first quarter of 2026 was 1.34% while return on average tangible common equity was 17.78%⁽¹⁾.  These compare to return on average assets of 1.22% and return on average tangible common equity of 16.27%⁽¹⁾ in the fourth quarter of 2025. 

First quarter 2026 highlights include:

• Robust net interest margin of 3.97%, or 3.99% on a fully tax-equivalent basis⁽¹⁾
  • 1 bp increase from fourth quarter
  • Increase from linked quarter driven by a 13 bp decline in funding costs, which was partially offset by a 12 bp decrease in asset yields
    
    
    
    
• Noninterest income of $81.9 million; $75.6 million on an adjusted⁽¹⁾ basis
  • Adjustments include a $1.3 million loss on securities, an $8.9 million gain on bargain purchase, and a $1.4 million loss on the surrender of a bank owned life insurance policy
  • Leasing business income remains strong at $21.6 million, a 10.7% increase from fourth quarter
  • Record wealth management income increased 12.9%, to $10.5 million
  • Foreign exchange income of $16.3 million
    
    
    
    
• Noninterest expenses of $169.4 million, or $154.8 million as adjusted⁽¹⁾; 9.1% increase from linked quarter
  • Adjustments⁽¹⁾ include $14.3 million of acquisition related expenses, $0.7 million of tax credit investment writedowns and $0.4 million of efficiency and other noninterest expenses
  • Increase driven by the BankFinancial and Westfield acquisitions
  • Efficiency ratio of 62.4%; 58.4% as adjusted⁽¹⁾ 
    
    
    
    
• Modest loan growth during the quarter
  • End of period loan balances increased $70.8 million; includes $227.7 million acquired in BankFinancial transaction offset primarily by $151.9 million decrease in ICRE
  • Decline in legacy loan balances driven by elevated payoffs
  • Originations increased approximately 45% compared to the first quarter of 2025
  • Significant increase in loan pipelines since January

___________________________________________________________________________________________

• Strong average deposit growth during the quarter
  • Total average deposit balances increased $1.7 billion; includes $1.2 billion impact from the BankFinancial acquisition and full quarter impact from Westfield
  • Seasonal decline in public funds
    
    
    
    
• Total Allowance for Credit Losses of $206.7 million; Total quarterly provision expense of $8.5 million
  • Loans and leases - ACL of $183.7 million; $2.8 million initial ACL related to BankFinancial
  • ACL to total loans of 1.36%
  • Unfunded Commitments - ACL of $23.0 million; $0.3 million related to BankFinancial
  • Annualized net charge-offs were 35 bps of total loans
  • Nonperforming assets decreased slightly to 0.44% of total assets; Classified assets decreased to 1.02% of total assets
    
    
    
    
• Capital ratios remain strong
  • Total capital ratio increased 25 bps to 15.71%
  • Tier 1 common equity increased 91 bps to 12.23%
  • Tangible common equity of 7.88%⁽¹⁾; 8.89%⁽¹⁾ excluding impact from AOCI
  • Tangible book value per share of $16.15⁽¹⁾; 2.6% increase from linked quarter

Additionally, the Board of Directors has authorized a new share repurchase program that replaces the previously authorized program.  Under the new plan, which expires in December 2027, management is authorized to purchase up to 5 million shares.

Archie Brown, President and CEO, commented on the First Quarter results, "I am very pleased with our overall performance in the first quarter.  The first quarter was a busy one as we closed the BankFinancial acquisition, completed the conversion of Westfield Bank, and wrapped up the sale of the BankFinancial multi-family loan portfolio.  Adjusted⁽¹⁾ earnings per share were $0.77, with an adjusted⁽¹⁾ return on assets of 1.45% and an adjusted⁽¹⁾ return on tangible common equity of 19.2%.  Adjusted⁽¹⁾ earnings per share increased 22% compared to the first quarter of last year, driven by a robust net interest margin and strong fee income.  Our net interest margin was resilient, despite the fed funds rate cut in December, as the expected decline in loan yields was offset by a similar decline in deposits costs.  Assuming no short-term rate reductions by the Federal Reserve, we expect the margin to remain stable in the near term."

Mr. Brown continued, "Loan balances increased slightly for the quarter due to the BankFinancial acquisition.  Excluding the BankFinancial portfolio, loans declined for the quarter as seasonally strong loan production was offset by extended payoff pressure in the ICRE portfolio.  Compared to the first quarter of 2025, originations increased by approximately 45%, and excluding Westfield and BankFinancial, originations were up by over 25%.  Our expectation for loan growth for 2026 has not materially changed.  Loan pipelines are very healthy, and we expect strong production in the second quarter.  We also expect payoff activity in ICRE to approach more normal levels, leading to solid loan growth in the second quarter."

Mr. Brown commented on fee income and expenses, "Adjusted⁽¹⁾ fee income was very strong for the quarter.  Historically, fee income significantly dips early in the year, however we successfully combated this trend in the first quarter.  Adjusted⁽¹⁾ noninterest income was $75.6 million, which was 24% higher than in the first quarter of 2025 and only a slight decline from the linked quarter.  These results were driven by record Wealth Management income, strong client derivative income and record leasing business income.  Additionally, expenses were well controlled during the quarter with total noninterest expenses coming in well below our expectations and acquisition-related cost savings exceeding our initial estimates." 

Mr. Brown commented on asset quality and capital, "Net charge-offs were 35 basis points of total loans and were impacted by one large commercial relationship.  Other asset quality indicators were stable with nonperforming assets slightly declining from the linked quarter to 44 basis points.  While there is more uncertainty in the economy due to the impact of the war in Iran, our current expectations are for asset quality to gradually improve throughout the year, similar to our performance in 2025.  Capital ratios are strong and continued to climb in the first quarter.  All regulatory ratios were well in excess of regulatory minimums and tangible common equity increased to 7.9%.  Tangible book value per share was $16.15, which was a 2.6% increase over the linked quarter, and a 9% increase compared to the first quarter of 2025.  Tangible book value was at approximately the same level as the third quarter of 2025, prior to the Westfield Bank acquisition.  This month, the Board of Directors authorized a 5 million share repurchase plan, replacing the plan we had in place through 2025, and we are evaluating opportunities to employ buybacks as part of our overall capital planning."

On the recent acquisitions, Mr. Brown commented, "During the first quarter we successfully completed the conversion of Westfield Bank.  For the first quarter, deposit and loan balances were stable, we maintained high associate retention, and we have achieved the financial results that we expected from the transaction to date.  We are happy with the quality of the bank we acquired and with the talented team that has joined us.  We also completed the purchase of BankFinancial on January 1st and plan to convert systems in early June.  We remain excited about the opportunities in the Chicago market and continue to see high growth potential from this transaction." 

Mr. Brown concluded, "In closing, I want to thank our associates for the incredible work they have done this year integrating Westfield into First Financial and the work they are now doing as they prepare for the BankFinancial conversion.  I also want to mention how proud I am that First Financial was selected for the Gallup Exceptional Workplace Award for associate engagement.  This marks the second consecutive year that we have received this honor, which is awarded to 4% of the thousands of companies that Gallup works with worldwide.  We have partnered with Gallup for more than six years and we have made associate engagement a core tenant of our corporate strategy.  I want to commend our associates and leaders who work throughout the year to drive engagement, knowing that by doing so, we are also improving the client experience and shareholder value." 

Full detail of the Company's first quarter 2026 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, April 24, 2026 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 May 8, 2026.  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;
  
  
• 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, 2025, 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 March 31, 2026, the Company had $22.8 billion in assets, $13.5 billion in loans, $17.9 billion in deposits and $2.9 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 $4.1 billion in assets under management as of March 31, 2026.  The Company operated 153 full service banking centers as of March 31, 2026, 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.