First Financial Bancorp (FFBC) Q4 2024 earnings summary

Executive summary

• Adjusted EPS for Q4 was $0.71, with net income of $64.9M and adjusted net income of $67.7M; ROA at 1.47% and return on tangible common equity at 19.90%.

• Full-year adjusted net income reached $249M ($2.61 per share), with ROA at 1.4%.

• Record annual revenue of $854M, up 2% year-over-year, driven by strong loan and deposit growth.

• Expansion into new markets, including Grand Rapids, MI, and continued momentum in Chicago, Evansville, and Cleveland.

• Achieved 137th consecutive quarter of profitability.

Financial highlights

• Q4 net interest margin was 3.94%, down 14 bps from the prior quarter due to lower asset yields.

• Noninterest income reached a record $69.9M in Q4, with double-digit increases in wealth management, leasing, and FX.

• Noninterest expenses were $130.9M as adjusted, up 5% from Q3, mainly from higher incentive compensation.

• Tangible book value per share increased 14% year-over-year to $14.15.

• Loan growth exceeded 7% annualized in Q4; total deposits grew 16% annualized.

Outlook and guidance

• Loan growth expected to moderate to low single digits annualized in Q1 2025; investment portfolio to remain stable.

• Net interest margin projected between 3.85% and 3.9% for Q1 2025, assuming no Fed rate cuts.

• Fee income guidance for Q1 2025 is $63–$65M; noninterest expense expected at $128–$130M.

• Credit costs anticipated to be modestly lower, with stable to slightly increasing ACL coverage.

• Dividend expected to be maintained at $0.24 per share.