First Financial Bancorp (FFBC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $52.5M ($0.55 per diluted share), with adjusted EPS of $0.67 and return on assets of 1.42% (adjusted), and return on tangible common equity of 19.77% (adjusted).

• Achieved 136th consecutive quarter of profitability; tangible book value per share rose 10.2% from Q2 to $14.26, up over 30% year-over-year.

• Completed Agile Premium Finance acquisition, expanding specialty lending and adding $211M in loans.

• Average deposit balances grew 4.9% annualized; loan growth was modest due to higher payoffs and softer pipelines.

• Non-interest income was $45.7M ($58.8M adjusted), impacted by $17.5M in securities losses, including $9.7M impairment on two bonds.

Financial highlights

• Net interest income was $155.6M, with net interest margin (FTE) at 4.08%, down 2 bps from Q2.

• Noninterest expense was $125.8M ($124.7M adjusted), up 1.8% from Q2, driven by leasing and foundation contributions.

• Efficiency ratio was 62.5% (58.2% adjusted); pre-tax, pre-provision ROA was 2%.

• End-of-period assets were $18.1B; loans $11.6B; deposits $13.9B.

• Tangible book value per share increased to $14.26; tangible common equity ratio rose to 7.98%.

Outlook and guidance

• Loan pipelines have strengthened, with expected mid-single-digit annualized loan growth in Q4 and mid to high single digits in 2025.

• Net interest margin expected to decline to 3.85%-3.95% in Q4, assuming further Fed rate cuts.

• Credit costs and ACL coverage expected to remain stable to slightly increasing; full-year net charge-offs projected at 25-30 bps.

• Fee income guidance for Q4 is $63-$65M; non-interest expense expected at $126-$128M.

• Additional cost savings expected from ongoing workforce efficiency initiatives into 2025.