First Financial Bancorp (FFBC) Q4 2024 earnings summary

Executive summary

• Achieved strong fourth quarter and full-year 2024 results, with adjusted EPS of $0.71 in Q4 and $2.61 for the year, and record revenue of $854 million, up 2% year-over-year.

• Net income for Q4 was $64.9 million ($0.68 per diluted share), with adjusted net income of $67.7 million.

• Loan growth exceeded 7% annualized in Q4 and 7.6% for the year; deposit growth was 16% annualized in Q4 and 7.2% for the year.

• Noninterest income reached a record $69.9 million in Q4, led by leasing, wealth management, and foreign exchange.

• Asset quality remained stable, with non-performing assets at 0.36% of total assets.

Financial highlights

• Net interest margin declined to 3.94% in Q4, down 14 basis points sequentially, and averaged 4.05% for the year.

• Net interest income was $154.4 million in Q4; noninterest income reached $69.9 million.

• Adjusted net income for Q4 was $67.7 million; full-year adjusted net income was $249 million.

• Tangible book value per share increased 14% year-over-year to $14.15.

• Noninterest expense increased 5% sequentially in Q4, mainly due to higher incentive compensation.

Outlook and guidance

• Loan growth expected to moderate to low single digits annualized in Q1 2025 due to seasonality and higher payoffs.

• Net interest margin projected between 3.85% and 3.9% in Q1 2025, with similar levels expected for the year assuming one Fed rate cut.

• Fee income guidance for Q1 2025 is $63–$65 million; noninterest expense expected at $128–$130 million.

• Credit costs anticipated to be modestly lower in Q1 2025, with stable to slightly increasing ACL coverage.

• Dividend expected to be maintained at current levels.