Return on average assets of 1.34%; 1.45% on an adjusted(1) basis
Net interest margin on FTE basis(1) of 3.99%
Record quarterly revenue of $265.3 million on an adjusted(1) basis
Noninterest income of $75.6 million on an adjusted(1) basis
$150 million of subordinated debt redeemed
ROTCE of 17.8%; 19.2% on adjusted(1) basis
2nd consecutive Gallup Exceptional Workplace Award for outstanding associate engagement
BankFinancial acquisition closed January 1, 2026
Board of Directors authorized 5,000,000 share repurchase plan
CINCINNATI, April 23, 2026 /PRNewswire/ -- First Financial Bancorp. (NASDAQ:FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2026.
For the three months ended March 31, 2026, the Company reported net income of $74.4 million, or $0.71 per diluted common share. These results compare to net income of $62.4 million, or $0.64 per diluted common share, for the fourth quarter of 2025.
Return on average assets for the first quarter of 2026 was 1.34% while return on average tangible common equity was 17.78%(1). These compare to return on average assets of 1.22% and return on average tangible common equity of 16.27%(1) in the fourth quarter of 2025.
First quarter 2026 highlights include:
Robust net interest margin of 3.97%, or 3.99% on a fully tax-equivalent basis(1)
1 bp increase from fourth quarter
Increase from linked quarter driven by a 13 bp decline in funding costs, which was partially offset by a 12 bp decrease in asset yields
Noninterest income of $81.9 million; $75.6 million on an adjusted(1) basis
Adjustments include a $1.3 million loss on securities, an $8.9 million gain on bargain purchase, and a $1.4 million loss on the surrender of a bank owned life insurance policy
Leasing business income remains strong at $21.6 million, a 10.7% increase from fourth quarter
Record wealth management income increased 12.9%, to $10.5 million
Foreign exchange income of $16.3 million
Noninterest expenses of $169.4 million, or $154.8 million as adjusted(1); 9.1% increase from linked quarter
Adjustments(1) include $14.3 million of acquisition related expenses, $0.7 million of tax credit investment writedowns and $0.4 million of efficiency and other noninterest expenses
Increase driven by the BankFinancial and Westfield acquisitions
Efficiency ratio of 62.4%; 58.4% as adjusted(1)
Modest loan growth during the quarter
End of period loan balances increased $70.8 million; includes $227.7 million acquired in BankFinancial transaction offset primarily by $151.9 million decrease in ICRE
Decline in legacy loan balances driven by elevated payoffs
Originations increased approximately 45% compared to the first quarter of 2025
Significant increase in loan pipelines since January
___________________________________________________________________________________________
Strong average deposit growth during the quarter
Total average deposit balances increased $1.7 billion; includes $1.2 billion impact from the BankFinancial acquisition and full quarter impact from Westfield
Seasonal decline in public funds
Total Allowance for Credit Losses of $206.7 million; Total quarterly provision expense of $8.5 million
Loans and leases - ACL of $183.7 million; $2.8 million initial ACL related to BankFinancial
ACL to total loans of 1.36%
Unfunded Commitments - ACL of $23.0 million; $0.3 million related to BankFinancial
Annualized net charge-offs were 35 bps of total loans
Nonperforming assets decreased slightly to 0.44% of total assets; Classified assets decreased to 1.02% of total assets
Capital ratios remain strong
Total capital ratio increased 25 bps to 15.71%
Tier 1 common equity increased 91 bps to 12.23%
Tangible common equity of 7.88%(1); 8.89%(1) excluding impact from AOCI
Tangible book value per share of $16.15(1); 2.6% increase from linked quarter
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Additionally, the Board of Directors has authorized a new share repurchase program that replaces the previously authorized program. Under the new plan, which expires in December 2027, management is authorized to purchase up to 5 million shares.
Archie Brown, President and CEO, commented on the First Quarter results, "I am very pleased with our overall performance in the first quarter. The first quarter was a busy one as we closed the BankFinancial acquisition, completed the conversion of Westfield Bank, and wrapped up the sale of the BankFinancial multi-family loan portfolio. Adjusted(1) earnings per share were $0.77, with an adjusted(1) return on assets of 1.45% and an adjusted(1) return on tangible common equity of 19.2%. Adjusted(1) earnings per share increased 22% compared to the first quarter of last year, driven by a robust net interest margin and strong fee income. Our net interest margin was resilient, despite the fed funds rate cut in December, as the expected decline in loan yields was offset by a similar decline in deposits costs. Assuming no short-term rate reductions by the Federal Reserve, we expect the margin to remain stable in the near term."
Mr. Brown continued, "Loan balances increased slightly for the quarter due to the BankFinancial acquisition. Excluding the BankFinancial portfolio, loans declined for the quarter as seasonally strong loan production was offset by extended payoff pressure in the ICRE portfolio. Compared to the first quarter of 2025, originations increased by approximately 45%, and excluding Westfield and BankFinancial, originations were up by over 25%. Our expectation for loan growth for 2026 has not materially changed. Loan pipelines are very healthy, and we expect strong production in the second quarter. We also expect payoff activity in ICRE to approach more normal levels, leading to solid loan growth in the second quarter."
Mr. Brown commented on fee income and expenses, "Adjusted(1) fee income was very strong for the quarter. Historically, fee income significantly dips early in the year, however we successfully combated this trend in the first quarter. Adjusted(1) noninterest income was $75.6 million, which was 24% higher than in the first quarter of 2025 and only a slight decline from the linked quarter. These results were driven by record Wealth Management income, strong client derivative income and record leasing business income. Additionally, expenses were well controlled during the quarter with total noninterest expenses coming in well below our expectations and acquisition-related cost savings exceeding our initial estimates."
Mr. Brown commented on asset quality and capital, "Net charge-offs were 35 basis points of total loans and were impacted by one large commercial relationship. Other asset quality indicators were stable with nonperforming assets slightly declining from the linked quarter to 44 basis points. While there is more uncertainty in the economy due to the impact of the war in Iran, our current expectations are for asset quality to gradually improve throughout the year, similar to our performance in 2025. Capital ratios are strong and continued to climb in the first quarter. All regulatory ratios were well in excess of regulatory minimums and tangible common equity increased to 7.9%. Tangible book value per share was $16.15, which was a 2.6% increase over the linked quarter, and a 9% increase compared to the first quarter of 2025. Tangible book value was at approximately the same level as the third quarter of 2025, prior to the Westfield Bank acquisition. This month, the Board of Directors authorized a 5 million share repurchase plan, replacing the plan we had in place through 2025, and we are evaluating opportunities to employ buybacks as part of our overall capital planning."
On the recent acquisitions, Mr. Brown commented, "During the first quarter we successfully completed the conversion of Westfield Bank. For the first quarter, deposit and loan balances were stable, we maintained high associate retention, and we have achieved the financial results that we expected from the transaction to date. We are happy with the quality of the bank we acquired and with the talented team that has joined us. We also completed the purchase of BankFinancial on January 1st and plan to convert systems in early June. We remain excited about the opportunities in the Chicago market and continue to see high growth potential from this transaction."
Mr. Brown concluded, "In closing, I want to thank our associates for the incredible work they have done this year integrating Westfield into First Financial and the work they are now doing as they prepare for the BankFinancial conversion. I also want to mention how proud I am that First Financial was selected for the Gallup Exceptional Workplace Award for associate engagement. This marks the second consecutive year that we have received this honor, which is awarded to 4% of the thousands of companies that Gallup works with worldwide. We have partnered with Gallup for more than six years and we have made associate engagement a core tenant of our corporate strategy. I want to commend our associates and leaders who work throughout the year to drive engagement, knowing that by doing so, we are also improving the client experience and shareholder value."
Full detail of the Company's first quarter 2026 performance is provided in the accompanying financial statements and slide presentation.
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Teleconference / Webcast InformationFirst Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 24, 2026 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 (U.S. toll free), (609) 800-9099 (U.S. toll), access code 5048068. The recording will be available until May 8, 2026. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.
Press Release and Additional Information on WebsiteThis press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.
Use of Non-GAAP Financial MeasuresThis earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Forward-Looking Statements
Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.
As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:
economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
Management's ability to effectively execute its business plans;
mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
the effect of changes in accounting policies and practices;
changes in consumer spending, borrowing and saving and changes in unemployment;
changes in customers' performance and creditworthiness;
the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth;
our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
our ability to develop and execute effective business plans and strategies.
Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2025, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp.First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2026, the Company had $22.8 billion in assets, $13.5 billion in loans, $17.9 billion in deposits and $2.9 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $4.1 billion in assets under management as of March 31, 2026. The Company operated 153 full service banking centers as of March 31, 2026, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. In 2025, First Financial Bank received its second consecutive Outstanding rating from the Federal Reserve for its performance under the Community Reinvestment Act and was recognized as a Gallup Exceptional Workplace Award winner, one of only 70 Gallup clients worldwide to receive this designation. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
2026
2025
2025
2025
2025
RESULTS OF OPERATIONS
Net income
$ 74,445
$ 62,393
$ 71,923
$ 69,996
$ 51,293
Net earnings per share - basic
$ 0.72
$ 0.65
$ 0.76
$ 0.74
$ 0.54
Net earnings per share - diluted
$ 0.71
$ 0.64
$ 0.75
$ 0.73
$ 0.54
Dividends declared per share
$ 0.25
$ 0.25
$ 0.25
$ 0.24
$ 0.24
KEY FINANCIAL RATIOS
Return on average assets
1.34 %
1.22 %
1.54 %
1.52 %
1.13 %
Return on average shareholders' equity
10.24 %
9.18 %
11.08 %
11.16 %
8.46 %
Return on average tangible shareholders' equity (1)
17.78 %
16.27 %
19.11 %
19.61 %
15.16 %
Net interest margin
3.97 %
3.96 %
3.99 %
4.01 %
3.84 %
Net interest margin (fully tax equivalent) (1)(2)
3.99 %
3.98 %
4.02 %
4.05 %
3.88 %
Ending shareholders' equity as a percent of ending assets
12.92 %
13.11 %
14.18 %
13.73 %
13.55 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
7.88 %
7.79 %
8.87 %
8.40 %
8.16 %
Risk-weighted assets (1)
10.52 %
9.76 %
10.94 %
10.44 %
10.10 %
Average shareholders' equity as a percent of average assets
13.12 %
13.31 %
13.87 %
13.66 %
13.38 %
Average tangible shareholders' equity as a percent of average tangible assets (1)
8.01 %
7.97 %
8.54 %
8.26 %
7.94 %
Book value per share
$ 28.02
$ 28.11
$ 27.48
$ 26.71
$ 26.13
Tangible book value per share (1)
$ 16.15
$ 15.74
$ 16.19
$ 15.40
$ 14.80
Common equity tier 1 ratio (3)
12.23 %
11.32 %
12.91 %
12.57 %
12.29 %
Tier 1 ratio (3)
12.51 %
11.60 %
13.23 %
12.89 %
12.61 %
Total capital ratio (3)
15.71 %
15.46 %
15.32 %
14.98 %
14.90 %
Leverage ratio (3)
9.39 %
9.53 %
10.50 %
10.28 %
10.01 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$ 14,028,324
$ 12,812,267
$ 11,806,065
$ 11,792,840
$ 11,724,727
Investment securities
4,769,261
3,988,846
3,552,014
3,478,921
3,411,593
Interest-bearing deposits with other banks
596,094
647,347
610,074
542,815
615,812
Total earning assets
$ 19,393,679
$ 17,448,460
$ 15,968,153
$ 15,814,576
$ 15,752,132
Total assets
$ 22,459,523
$ 20,256,539
$ 18,566,188
$ 18,419,437
$ 18,368,604
Noninterest-bearing deposits
$ 3,745,002
$ 3,436,709
$ 3,124,277
$ 3,143,081
$ 3,091,037
Interest-bearing deposits
13,900,550
12,521,948
11,387,648
11,211,694
11,149,633
Total deposits
$ 17,645,552
$ 15,958,657
$ 14,511,925
$ 14,354,775
$ 14,240,670
Borrowings
$ 1,012,161
$ 848,650
$ 823,346
$ 910,573
$ 1,001,337
Shareholders' equity
$ 2,947,585
$ 2,695,581
$ 2,575,203
$ 2,515,747
$ 2,457,785
CREDIT QUALITY RATIOS
Allowance to ending loans
1.36 %
1.39 %
1.38 %
1.34 %
1.33 %
Allowance to nonaccrual loans
182.73 %
183.18 %
213.18 %
206.08 %
261.07 %
Nonaccrual loans to total loans
0.75 %
0.76 %
0.65 %
0.65 %
0.51 %
Nonperforming assets to ending loans, plus OREO
0.75 %
0.76 %
0.65 %
0.65 %
0.51 %
Nonperforming assets to total assets
0.44 %
0.48 %
0.41 %
0.41 %
0.32 %
Classified assets to total assets
1.02 %
1.11 %
1.18 %
1.15 %
1.16 %
Net charge-offs to average loans (annualized)
0.35 %
0.27 %
0.18 %
0.21 %
0.36 %
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(3) March 31, 2026 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2026
2025
First
Fourth
Third
Second
First
Full
Quarter
Quarter
Quarter
Quarter
Quarter
Year
Interest income
Loans and leases, including fees
$ 224,951
$ 215,663
$ 204,865
$ 201,460
$ 197,163
$ 819,151
Investment securities
Taxable
49,491
40,971
36,421
36,243
34,401
148,036
Tax-exempt
2,526
2,363
2,195
2,233
2,204
8,995
Total investment securities interest
52,017
43,334
38,616
38,476
36,605
157,031
Other earning assets
5,450
6,334
6,773
5,964
6,651
25,722
Total interest income
282,418
265,331
250,254
245,900
240,419
1,001,904
Interest expense
Deposits
79,735
78,861
77,766
75,484
78,641
310,752
Short-term borrowings
5,168
4,925
5,979
6,393
7,545
24,842
Long-term borrowings
7,905
7,550
6,023
5,754
4,937
24,264
Total interest expense
92,808
91,336
89,768
87,631
91,123
359,858
Net interest income
189,610
173,995
160,486
158,269
149,296
642,046
Provision for credit losses-loans and leases
6,030
9,688
8,612
9,084
9,141
36,525
Provision for credit losses-unfunded commitments
2,510
412
453
718
(441)
1,142
Net interest income after provision for credit losses
181,070
163,895
151,421
148,467
140,596
604,379
Noninterest income
Service charges on deposit accounts
9,013
8,308
7,829
7,766
7,463
31,366
Wealth management fees
10,482
9,288
7,351
7,787
8,137
32,563
Bankcard income
3,580
3,590
3,589
3,737
3,310
14,226
Client derivative fees
4,010
2,681
1,876
1,674
1,571
7,802
Foreign exchange income
16,313
22,696
16,666
13,760
12,544
65,666
Leasing business income
21,608
19,523
20,997
20,797
18,703
80,020
Net gains from sales of loans
6,047
7,041
6,835
6,687
4,322
24,885
Net gain (loss) on investment securities
(1,260)
(12,576)
(42)
243
(9,949)
(22,324)
Gain on bargain purchase
8,892
0
0
0
0
0
Other
3,221
4,216
8,424
5,612
4,982
23,234
Total noninterest income
81,906
64,767
73,525
68,063
51,083
257,438
Noninterest expenses
Salaries and employee benefits
99,856
85,123
80,607
74,917
75,238
315,885
Net occupancy
7,553
6,315
6,003
5,845
6,019
24,182
Furniture and equipment
4,693
3,940
3,582
3,441
3,813
14,776
Data processing
12,654
10,465
9,591
9,020
8,759
37,835
Marketing
2,652
3,056
2,359
2,737
2,018
10,170
Professional services
3,986
6,231
2,314
3,549
2,739
14,833
Amortization of tax credit investments
669
800
112
111
112
1,135
FDIC assessments
3,645
2,923
2,611
2,611
3,059
11,204
Intangible amortization
6,261
3,927
2,359
2,358
2,359
11,003
Leasing business expense
14,129
13,837
13,911
13,155
12,802
53,705
Other
13,310
12,914
10,820
10,927
11,158
45,819
Total noninterest expenses
169,408
149,531
134,269
128,671
128,076
540,547
Income before income taxes
93,568
79,131
90,677
