GICS Sector : Financial Services
First Financial Bancorp.operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois.The company accepts various deposit products, such as interest-bearing and noninterest-bearing accounts, time deposits, and cash management services for commercial customers.
First Financial Bancorp reported adjusted net income of $72.6 million and adjusted earnings per share of $0.76 for the third quarter of 2025, with the company achieving record revenue driven by a robust net interest margin and record noninterest income. The net interest margin was 4.02%, with asset yields declining slightly and funding costs increasing modestly. Noninterest income was a record $73.6 million, led by leasing and foreign exchange businesses. The actual EPS of $0.76 beat estimates of $0.75, indicating a strong quarterly performance.
Publication Date: Oct -27
Loan balances declined modestly during the quarter, primarily due to lower production in specialty businesses and a greater percentage of construction originations. However, loan pipelines are healthy, and the company expects to return to mid-single-digit loan growth in the fourth quarter. Asset quality metrics were stable, with nonperforming assets flat as a percent of assets and annualized net charge-offs at 18 basis points, indicating a well-managed loan portfolio.
The company's efficiency efforts continue to impact results positively, with total noninterest expenses increasing due to higher incentive compensation. The company's capital ratios remain in excess of regulatory minimums and internal targets, with tangible book value increasing to $16.19 and the tangible common equity ratio increasing to 8.87%. This strong capital position provides a foundation for future growth.
For the fourth quarter, the company expects loan growth to be in the mid-single digits, with core deposit balances increasing and net interest margin between 3.92% and 3.97%. Fee income is expected to be between $77 million and $79 million, and noninterest expense is expected to be between $142 million and $144 million. The company has received formal regulatory approval for the Westfield transaction and anticipates closing in early November.
With a Price-to-Tangible Book Value (P/TBV) of approximately 0.87, the stock appears reasonably valued relative to its book value. The Dividend Yield of 4.03% provides an attractive return for income-focused investors. Analysts estimate next year's revenue growth at 19.7%, indicating a positive outlook for the company's future performance. As the company continues to execute on its growth strategy and improve efficiency, it is well-positioned to deliver strong returns to shareholders.
Fisher Asset Management LLC Lowers Stock Holdings in First Financial Bancorp. $FFBC
Dec -04
Comparing Civista Bancshares (NASDAQ:CIVB) & First Financial Bancorp. (NASDAQ:FFBC)
Nov -22
First Financial Bancorp Is A Stellar Prospect
Nov -14
FIRST FINANCIAL BANCORP. ANNOUNCES PRICING OF SUBORDINATED NOTES OFFERING
Nov -07
Teacher Retirement System of Texas Sells 3,533 Shares of First Financial Bancorp. $FFBC
Nov -06
Y Intercept Hong Kong Ltd Acquires New Holdings in First Financial Bancorp. $FFBC
Nov -05
First Financial Bancorp. Announces the Completion of its Acquisition of Westfield Bancorp, Inc., and Westfield Bank, FSB
Nov -03
State of New Jersey Common Pension Fund D Acquires 6,204 Shares of First Financial Bancorp. $FFBC
Nov -02
First Financial Bancorp's 3.0% growth in Commercial Banking and Other Banking and Banking-related Activities is driven by increasing loan demand, expansion of commercial lending products, and strategic partnerships. Additionally, the bank's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment contribute to its growth momentum.
Provides financial solutions to businesses, including cash management, lending, and treasury management services.
Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.
Provides mortgage lending services to individuals and families, including purchase and refinance loans.
Offers investment and wealth management services, including financial planning, investment management, and trust services.
Provides insurance products, including life insurance, long-term care insurance, and annuities.
Offers cash management and treasury management services to businesses, including account management and payment processing.
The threat of substitutes for First Financial Bancorp is moderate due to the presence of alternative financial institutions and digital payment platforms.
The bargaining power of customers is low for First Financial Bancorp as customers have limited negotiating power and the bank has a strong brand presence.
The bargaining power of suppliers is moderate for First Financial Bancorp as the bank relies on a few large suppliers for technology and services.
The threat of new entrants is low for First Financial Bancorp due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.
The intensity of rivalry is high for First Financial Bancorp due to the competitive nature of the banking industry, with many established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 36.23% |
| Debt Cost | 6.69% |
| Equity Weight | 63.77% |
| Equity Cost | 9.11% |
| WACC | 8.23% |
| Leverage | 56.80% |
Value: 7.4
Growth: 6.8
Quality: 6.0
Yield: 8.0
Momentum: 7.5
Volatility: 8.0
1-Year Total Return ->
Value: 7.2
Growth: 6.1
Quality: 5.8
Yield: 8.0
Momentum: 5.0
Volatility: 7.7
1-Year Total Return ->
Value: 6.8
Growth: 6.1
Quality: 5.4
Yield: 4.0
Momentum: 9.0
Volatility: 7.7
1-Year Total Return ->
Value: 6.7
Growth: 5.4
Quality: 6.0
Yield: 8.0
Momentum: 4.0
Volatility: 8.3
1-Year Total Return ->
Value: 6.7
Growth: 4.9
Quality: 6.7
Yield: 6.0
Momentum: 5.0
Volatility: 7.3
1-Year Total Return ->
Value: 5.1
Growth: 3.2
Quality: 5.5
Yield: 6.0
Momentum: 7.0
Volatility: 5.7
1-Year Total Return ->