First Financial Bancorp (FFBC) Q3 2026 Earnings Report

The call was strongly positive overall, supported by record earnings, record revenue and fee income, solid loan growth, a 4.07% net interest margin, stable core credit metrics, capital ratios above targets, and progress toward closing the Finward acquisition. The company also identified challenges, including elevated expenses, higher classified assets tied to one relationship, rate-related declines in tangible book value and TCE, CRE and Oak Street payoff pressure, slower leasing growth, and increased deposit competition. Management nevertheless expressed confidence in fourth-quarter performance and its ability to close the year strongly.

For the fourth quarter, First Financial expects low to mid-single digit loan growth on an annualized basis and low single-digit core deposit balance growth; net interest margin is expected to increase to a range of 4.08%-4.12% over the next quarter, assuming a December rate hike, with the long-term impact from this increase in rates expected to be approximately three to four basis points, following an initial 7-8 basis point improvement and deposit-cost catch-up in really probably between a quarter and two quarters; fourth quarter credit costs are expected to approximate third quarter levels and ACL coverage to remain relatively stable as a percentage of loans; fee income is expected to be between $75 million and $78 million, including $18 million-$20 million of foreign exchange income and $21 million-$23 million of leasing business revenue, while non-interest expenses are expected to be between $150 million and $153 million.