First Financial Bancorp (FFBC) Q3 2024 earnings summary

Executive summary

• Adjusted EPS was $0.67, with net income of $52.5M, return on assets of 1.42% (1.17% GAAP), and return on tangible common equity of 19.77% (16.29% GAAP).

• Achieved 136th consecutive quarter of profitability; tangible book value per share rose 10.2% from Q2 to $14.26, up over 30% year-over-year.

• Completed Agile Premium Finance acquisition, expanding specialty lending and adding $211M in loans.

• Non-interest income was $45.7M ($58.8M adjusted), with strong contributions from foreign exchange, wealth management, and leasing, but impacted by $17.5M in securities losses.

• Asset quality remained stable, with net charge-offs at 25 basis points annualized and non-performing assets at 0.36% of assets.

Financial highlights

• Net interest margin (FTE) was 4.08%, down 2 bps from Q2; net interest income was $155.6M for Q3 2024.

• Noninterest expense was $125.8M ($124.7M adjusted), up 1.8% from Q2, with efficiency initiatives eliminating 120 positions.

• Efficiency ratio was 62.5% (58.2% adjusted).

• End-of-period assets were $18.1B; loans $11.6B; deposits $13.9B.

• Tangible common equity ratio was 7.98%; CET1 ratio 12.04%; total capital ratio 14.58%.

Outlook and guidance

• Loan growth expected to accelerate in Q4, with mid-single-digit annualized growth and strong Summit contributions.

• Net interest margin projected to decline to 3.85%-3.95% in Q4, assuming two 25bp Fed rate cuts.

• Credit costs and ACL coverage expected to remain stable to slightly increasing; full-year net charge-offs expected at 25-30 bps.

• Fee income guidance for Q4 is $63-$65M; non-interest expense expected at $126-$128M.

• Additional cost savings expected from ongoing workforce efficiency initiatives into 2025.