First Financial Bancorp (FFBC) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 net income of $51.3 million ($0.54 per share), with adjusted EPS of $0.63 and return on assets of 1.13% (1.33% adjusted); return on tangible common equity was 15.16% (17.8% adjusted).

• Net interest margin (FTE) was 3.88%, down 6 basis points from the prior quarter, with net interest income of $149.3 million.

• Noninterest income was $51.1 million ($61.0 million adjusted), with record wealth management revenue and strong leasing business performance.

• Noninterest expenses were $128.1 million ($126.6 million adjusted), down 3.3% from Q4 2024, driven by lower incentive compensation and fraud losses.

• Completed Agile Premium Finance acquisition, adding specialty lending capabilities and $1.8 million in goodwill.

Financial highlights

• Adjusted net income was $60.2 million ($0.63 per share); tangible book value per share increased to $14.80, up 4.6% from the prior quarter and 18% year-over-year.

• Net charge-offs were $10.5 million, or 0.36% of average loans annualized, primarily due to a single C&I credit.

• Nonperforming assets declined by 9.5% and classified assets decreased to 1.16% of total assets; nonaccrual loans were $59.6 million (0.51% of total loans).

• Total capital ratio was 14.90%; Tier 1 common equity ratio was 12.29%.

• 45% of earnings were returned to shareholders via dividends; dividend yield was 3.8% as of March 31, 2025.

Outlook and guidance

• Loan growth expected to remain in the low single digits annualized, with healthy pipelines but continued ICRE prepayment pressure.

• Net interest margin projected to expand to 3.95%-4.05% in Q2, assuming a 25 basis point rate cut.

• Fee income guidance for Q2 is $64–66 million, with $13–15 million from foreign exchange and $18–20 million from leasing.

• Noninterest expense expected to be $126–128 million, remaining stable.

• Credit costs and ACL coverage expected to be stable to slightly increasing.