First Financial Bancorp reported record third quarter revenue and adjusted earnings that exceeded analyst expectations, though GAAP results were impacted by acquisition-related costs. Net interest margin expanded slightly on a sequential basis but remained below consensus estimates.
Key Highlights
- Adjusted earnings per share reached a record $0.84, an 11% increase over the prior year, while GAAP diluted EPS was $0.77.
- Total revenue hit a record $273.9 million, supported by a robust fully tax-equivalent net interest margin of 4.07% and record adjusted noninterest income of $77.6 million.
- Loan balances grew by $170.2 million, representing a 4.9% annualized growth rate, led by the commercial and industrial (C&I) portfolio.
- Asset quality remained stable, though classified assets increased to 1.26% of total assets primarily due to the downgrade of a single investment commercial real estate (ICRE) relationship.
- The acquisition of Finward Bancorp received Federal regulatory approval and is expected to close on January 1, 2027.