Q1 Adjusted Revenue Reaches $251.3M, Beating Expectations
Reports Q1 adjusted revenue $251.3M, consensus $248.95M. Q4 net interest margin, fully tax equivalent, was 3.98% vs. 4.02% last quarter. Tangible book value per share of $15.74 was a 2.8% decrease from linked quarter. Archie Brown, CEO, commented, "I am very pleased with our record earnings performance for Q4. Adjusted EPS were 80c, leading to an adjusted return on assets of 1.52%, an adjusted return on tangible common equity ratio of 20.3%. The net interest margin, which declined slightly from Q3, has proven resilient as the reduction in funding costs negated most of the impact of short term rate reductions. Balance sheet trends were solid for the quarter with loan growth of 4% on an annualized basis and total average deposits increasing by approximately 7% on an annualized basis, excluding the impact from the Westfield acquisition. I am especially pleased with our robust noninterest income. Total adjusted fee income was $77.3M and increased 5% compared to the linked quarter. Wealth Management and foreign exchange income both increased by double-digit percentages, while leasing and mortgage income also remained strong. While adjusted noninterest expenses increased by 6% from the linked quarter, most of the increase was driven by the Westfield acquisition."
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First Financial Bancorp Reports Record Q4 2025 Earnings Performance
- Record Earnings Performance: First Financial Bancorp achieved an adjusted earnings per share of $0.80 in Q4 2025, with a return on assets of 1.52%, reflecting strong performance in net interest margin and noninterest income, thereby enhancing its competitive position in the market.
- Loan and Deposit Growth: The annualized loan growth rate was 4%, and deposits increased by approximately 7% annually, indicating that the company can maintain organic growth even after the Westfield Bank acquisition, further solidifying its market position.
- Expense and Income Outlook: Projected expenses for Q1 are between $156 million and $158 million, primarily influenced by acquisitions, while noninterest income is expected to range from $71 million to $73 million, demonstrating the company's confidence in future revenue.
- Strategic Integration Plans: Management anticipates that cost savings from acquisitions will materialize in the second half of 2026, and despite facing seasonal outflow pressures in the near term, the company remains optimistic about its organic loan growth target, projected between 6% and 8%.
First Financial Bancorp Reports Strong 2025 Financial Results
- Quarterly Net Income Performance: In Q4 2025, First Financial Bancorp reported net income of $62.4 million, or $0.64 per diluted share, indicating stable profitability despite a decline from $71.9 million in Q3 2025.
- Annual Performance Growth: For the full year 2025, adjusted net income reached $281.1 million, translating to $2.92 per share, marking a 21.7% increase from $2.40 in 2024, reflecting strong market performance and enhanced profitability.
- Stable Asset Quality: The nonperforming assets ratio slightly increased to 0.48% in Q4, while overall asset quality remained stable with a provision expense of $10.1 million, demonstrating effective management of credit risk.
- Increased Shareholder Returns: The Board approved a quarterly dividend of $0.25 per share, payable on March 16, 2026, showcasing the company's commitment to shareholder returns and reflecting its robust financial health.
