#United States #Cincinnati #Earnings #First Financial #FFBC

First Financial Bancorp announces Q1 2025 results

On April 24, 2025, First Financial Bancorp (NASDAQ: FFBC), headquartered in Cincinnati, Ohio, released its financial results for the period ended March 31, 2025. The company reported a net income of $51.3 million, translating to $0.54 per diluted share. This marks a decline in earnings compared to the previous quarter, where the net income was $64.9 million or $0.68 per diluted share. Despite this decline, the company's performance metrics demonstrate a resilient operational foundation amidst evolving market conditions.

Financial Highlights

In the first quarter of 2025, key performance indicators were noteworthy:

• - The return on average assets (ROAA) was 1.13%, while the return on average tangible common equity (ROTCE) stood at 15.16%. These figures were also lower compared to the fourth quarter of 2024, which reported ROAA at 1.41% and ROTCE at 19.08%.
• - The net interest margin was strong, recorded at 3.84%, or 3.88% when adjusted for tax-equivalency. This indicates a marginal decline from the preceding quarter, consistent with market trends.
• - Noninterest income totaled $51.1 million, with adjusted figures reaching $61.0 million. This included a notable $9.9 million loss related to the sale of investment securities, which the company had managed effectively throughout the quarter.
• - Noninterest expenses also showed a decline, totaling $128.1 million, reflecting a 3.3% reduction from the previous quarter. This decrease was attributed to efficient cost management strategies and a drop in incentive compensation.

Loan Balances and Deposits

First Financial Bancorp maintained stable loan balances, which decreased slightly by $37.6 million from the previous quarter. Seasonal factors and payoffs in the commercial and industrial lines contributed to this adjustment. Overall, average loan balances increased by 1.5% annually.

Deposits exhibited a modest seasonal decline of $99.0 million or 2.8% on an annualized basis. The decrease was primarily driven by reductions in non-interest-bearing deposits and brokered deposits. Notably, excluding brokered deposits, total average deposits actually increased by $62.8 million compared to the last quarter.

Asset Quality and Capital Stability

The company reported a total allowance for credit losses of $171.9 million, with a quarterly provision expense of $8.7 million marking net charge-offs. Positive trends were seen as nonperforming assets decreased to 0.32% of total assets, reflecting the company’s strong asset quality.

Regarding capital adequacy, the total capital ratio grew to 14.90%, and the Tier 1 common equity ratio increased to 12.29%, highlighting the bank's robust capital standing to support future growth.

CEO Comments

In his remarks, CEO Archie Brown highlighted the company's solid quarter, reaffirming their commitment to financial discipline and stable growth. Brown noted that while loan balances were stable, they anticipated modest growth in the coming quarter as the loan pipeline remains encouraging, particularly in the consumer and commercial sectors.

Brown also emphasized the importance of employee engagement, as the bank was honored with the Gallup Exceptional Workplace Award. This recognition underscores First Financial's commitment to creating a positive work environment and enhancing customer satisfaction.

Outlook for 2025

While the economic outlook remains uncertain, First Financial Bancorp is strategically positioned to navigate any potential market volatility. The company holds sufficient capital reserves, demonstrating strong liquidity and profitability metrics. As operational efficiencies are continually optimized, the board is confident in the bank’s ability to enhance shareholder value further in the coming periods.

In conclusion, the financial results from Q1 2025 reflect First Financial Bancorp's resilience and adaptability in a challenging market, continuing its rich history of providing quality banking services tailored to various customer needs.

For further details on First Financial Bancorp's financial performance and more comprehensive insights into their strategic initiatives, you can visit their investor relations website.