First Financial Bancorp (FFBC) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $226.3M, up 5% year-over-year, with Q2 2025 net income of $70.0M ($0.73 per diluted share) and adjusted EPS of $0.74.

• Adjusted return on assets was 1.54% and adjusted return on tangible common equity reached 20%.

• End-of-period assets reached $18.6B, with 128 full-service banking centers and $3.8B in wealth management assets.

• Board approved a 4.2% increase in the quarterly dividend to $0.25 per share.

• Announced pending acquisitions of Westfield Bank for $325M and BankFinancial for $142M, both expected to close in Q4 2025, expanding Midwest and Northeast Ohio presence.

Financial highlights

• Net interest margin (FTE) rose to 4.05%, up 17 bps from Q1 2025.

• Noninterest income was $68.1M ($67.8M adjusted), up 11% sequentially and 10% year-over-year, with strong growth in mortgage, bankcard, leasing, and foreign exchange income.

• Noninterest expenses were $128.7M ($127.6M adjusted), up less than 1% from Q1 2025; efficiency ratio improved to 56.9%.

• Loan balances grew 2% annualized, with broad-based growth except for commercial real estate.

• Tangible book value per share increased 4% sequentially to $15.40.

Outlook and guidance

• Loan growth expected in the low to mid-single digits annualized for Q3 and the second half of 2025.

• Net interest margin projected to remain strong at 4.00–4.05%, assuming a 25 bps rate cut.

• Fee income guidance for Q3: $67M–$69M, with $14M–$16M from FX and $19M–$21M from leasing.

• Noninterest expense expected between $128M–$130M; dividend increased to $0.25 per share.

• Asset quality outlook positive; net charge-offs expected in the 20–25 bps range.