First Financial Bancorp Reports Record Revenue in Q3 2025

First Financial Bancorp. ((FFBC)) has held its Q3 earnings call. Read on for the main highlights of the call.

First Financial Bancorp’s recent earnings call conveyed a generally positive sentiment, highlighting record revenue and stable asset quality. Despite facing challenges such as a decline in loan balances and increased noninterest expenses, the company’s strong financial metrics and efficiency improvements underscore a robust performance. The anticipated integration of pending acquisitions is expected to further enhance efficiencies and growth.

Record Revenue and Net Interest Margin

The third quarter of 2025 marked a significant achievement for First Financial Bancorp, with record revenue driven by a robust net interest margin and record noninterest income. The net interest margin was reported at an impressive 4.02%, showcasing the company’s ability to maintain strong profitability in its core operations.

Strong Financial Metrics

First Financial Bancorp reported an adjusted net income of $72.6 million, translating to an adjusted earnings per share of $0.76. The tangible book value per share saw a notable increase of 5% from the linked quarter and a remarkable 14% from a year ago, reflecting the company’s solid financial health and shareholder value enhancement.

Efficiency Improvements

The company demonstrated significant efficiency improvements, with total noninterest expenses remaining flat compared to the second quarter. Workforce efficiency efforts have led to a reduction of approximately 200 full-time equivalents, or 9%, over two years, highlighting the company’s commitment to operational efficiency.

Stable Asset Quality

Asset quality remained stable during the quarter, with nonperforming assets staying flat and annualized net charge-offs improving slightly to 18 basis points. This stability underscores the company’s effective risk management practices.

Positive Capital Position

First Financial Bancorp’s capital position strengthened, with tangible common equity increasing by 47 basis points to 8.87%. The capital ratios exceeded both internal and regulatory targets, providing a solid foundation for future growth.

Loan Balance Decline

The quarter saw a decline in loan balances by $72 million, attributed to lower production in specialty businesses and a higher percentage of construction originations. This decline presents a challenge that the company will need to address moving forward.

Increased Noninterest Expenses

Noninterest expenses rose by $5.7 million from the linked quarter, driven by higher incentive compensation tied to fee income. This increase highlights the company’s focus on rewarding performance and achieving revenue growth.

Pressure on Net Interest Margin

The net interest margin experienced a slight decrease of 3 basis points from the linked quarter, with asset yields declining slightly while deposit costs increased modestly. This pressure on the net interest margin will be an area to watch in future quarters.

Forward-Looking Guidance

Looking ahead, First Financial Bancorp anticipates mid-single-digit loan growth in the fourth quarter and expects the net interest margin to remain high, estimating it to be between 3.92% and 3.97% in the next quarter. These forecasts indicate a positive outlook for continued growth and profitability.

In summary, First Financial Bancorp’s earnings call reflected a positive sentiment, driven by record revenue and strong financial metrics. Despite challenges such as declining loan balances and increased noninterest expenses, the company’s efficiency improvements and stable asset quality position it well for future growth. The forward-looking guidance suggests continued strength in financial performance, making it a company to watch in the coming quarters.