Revenue: Record revenue of $226.3 million, a 5% increase over the same quarter last year.

Adjusted Earnings Per Share (EPS): $0.74.

Return on Assets (ROA): 1.54%.

Return on Tangible Common Equity (ROTCE): 20%.

Net Interest Margin: 4.05%, a 17 basis point increase from the first quarter.

Loan Growth: 2% on an annualized basis.

Adjusted Non-Interest Income: $67.8 million, an 11% increase over the previous quarter.

Adjusted Non-Interest Expenses: Increased by 1% compared to the first quarter.

Net Charge-Offs: Declined to 21 basis points of total loans.

Tangible Common Equity Ratio: Increased to 8.4%.

Book Value Per Share: Increased to $15.40, a 4% increase from the linked quarter.

Common Dividend: Increased by 4.2% to $0.25 per share.

Average Deposit Balances: Increased by $114 million.

Allowance for Credit Losses (ACL): Coverage increased to 1.34% of total loans.

Provision Expense: $9.8 million during the period.

Release Date: July 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

First Financial Bancorp (NASDAQ:FFBC) achieved record revenue of $226.3 million, a 5% increase over the same quarter last year.

The company reported a strong net interest margin of 4.05%, representing a 17 basis point increase from the first quarter.

Adjusted non-interest income increased by 11% over the previous quarter, with significant growth in mortgage, bank card, leasing, and foreign exchange income.

Asset quality remained stable with a 42% reduction in net charge-offs to 21 basis points on an annualized basis.

The board of directors approved a 4.2% increase in the common dividend, demonstrating a commitment to shareholder value.

Negative Points

Commercial real estate loan growth declined due to higher payoffs, impacting overall loan growth.

Non-performing assets (NPAs) increased slightly due to downgrades of two commercial borrowers.

Non-interest expenses increased slightly due to higher marketing expenses and incentive compensation.

The company anticipates a potential impact on net interest margin from expected rate cuts in the coming quarters.

Seasonal deposit outflows are expected to be around $100 million in the third quarter, impacting deposit balances.

Q & A Highlights

Q: How do you see deposit costs evolving in the near future, especially considering recent reductions? A: Jamie Anderson, CFO, noted that deposit costs are expected to decrease slightly by 2 to 3 basis points in the next quarter. They anticipate further reductions following expected rate cuts in September and December. The recent 12 to 13 basis point drop in deposit costs was due to a lag in adjusting rates compared to peers.