First Financial Bancorp (FFBC) Q2 2026 earnings summary

Executive summary

• Achieved record adjusted net income of $83.9 million ($0.80 per share), up 8% year-over-year, with GAAP EPS of $0.73 for Q2 2026, driven by organic loan growth and recent acquisitions.

• Completed integration of Westfield and BankFinancial acquisitions, with cost savings from Westfield fully realized and BankFinancial savings to be fully realized by Q3 end.

• Announced agreement to acquire Finward Bancorp, expanding presence in Northwest Indiana and Chicagoland, adding $2 billion in assets and $1.7 billion in deposits, expected to be 5% accretive to EPS.

• Maintained top quartile performance in ROA, ROATCE, NIM, and fee income among peers.

• Quarterly dividend increased to $0.26 per share, payable in Q3 2026.

Financial highlights

• Net interest margin (FTE) stable at 3.98%-3.99%, with deposit costs declining and asset yields slightly down from the prior quarter.

• Loan balances increased $240 million (7.1% annualized), with strong growth in C&I, Summit, and Agile segments.

• Adjusted fee income was $72 million–$75.6 million, with leasing and foreign exchange performing well, though total non-interest income declined sequentially.

• Tangible book value per share rose to $16.64, up 3% from the linked quarter; TCE ratio increased to 8.2%.

• Efficiency ratio improved to 56.8% on an adjusted basis.

Outlook and guidance

• Expect mid-single-digit annualized loan growth and low single-digit core deposit growth in Q3.

• Net interest margin projected to remain in the 3.96%-4.04% range, assuming stable rates.

• Fee income expected to rebound to $74–$77 million in Q3, with foreign exchange and leasing contributing $14–$17 million and $20–$24 million, respectively.

• Non-interest expenses forecasted at $149–$154 million for Q3.

• Full cost savings from BankFinancial to be realized in Q4; Westfield savings in Q3 run rate.