NASDAQ$FFBC

First Financial Bancorp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced third quarter 2024 financial results and quarterly dividend.

First Financial Bancorp reported a net income of $52.5 million, or $0.55 per diluted common share, for the three months ended September 30, 2024, with adjusted earnings per share at $0.67.

  • Earnings per diluted share of $0.55; $0.67 on an adjusted basis.
  • Return on average assets of 1.17%; 1.42% on an adjusted basis.
  • Net interest margin on FTE basis of 4.08%.
  • Average deposit growth of $166.2 million; 4.9% on an annualized basis.

Headline financials

Total Revenue

$201M

Previous: $212M-5.1%
EPS

$0.55

Previous: $0.67-17.9%
Net Interest Margin

4.1%

Previous: 4.3%-5.8%
Return on Average Assets

1.2%

Previous: 1.5%-20.9%
Return on Average Tangible Shareholders' Equity

16.3%

No prior period
Tangible Book Value Per Share

$14.26

No prior period
Common Equity Tier 1 Ratio

12.0%

No prior period
Tier 1 Ratio

12.4%

No prior period
Total Capital Ratio

14.6%

Previous: 13.5%+7.9%
Leverage Ratio

9.9%

No prior period
Allowance to Ending Loans

1.4%

No prior period
Nonaccrual Loans to Total Loans

0.6%

No prior period
Net Charge-Offs to Average Loans (Annualized)

0.3%

No prior period
Capital Expenditures

-$14.1M

Previous: -$18.1M+22.4%
Free Cash Flow

$38.4M

Previous: $44.9M-14.6%
Net Income

$52.5M

Previous: $63.1M-16.8%
Operating Income

$14.8M

Previous: $54.9M-73.1%
Gross Profit

$162M

Previous: $178M-9.1%
Cash & Equivalents

$851M

Previous: $673M+26.4%
Total Assets

$18.1B

Previous: $17.1B+6.4%
Stock-Based Comp

$3.46M

Previous: $4.56M-24.2%

Revenue & EPS history

First Financial · Revenue · Quarterly

$201M

Q3 2024-5.1%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

First Financial · $15.3M total across 3 segments · Q3 2021

  • Foreign Exchange Income
    $9.19M
  • Bankcard Income
    $3.84M
  • Client Derivative Fees
    $2.27M

Forward guidance

The economy remains healthy, and the general easing of interest rates should extend economic growth in the coming periods. The company believes it is in a strong position to finish the year on a high note and head into 2025 with continued momentum.

Tailwinds

  • Loan pipelines strengthened during the third quarter, and we expect higher growth rates as we close out the year.
  • Adjusted earnings per share were $0.67, which resulted in an adjusted return on assets of 1.42% and an adjusted return on tangible common equity of 19.77%.
  • Noninterest expenses were relatively flat compared to the prior quarter.
  • Workforce efficiency initiative has resulted in the elimination of 120 positions to date, with additional savings expected into 2025.
  • Tangible book value per share increased 10% from the linked quarter and over 30% from the same quarter last year to $14.26, while tangible common equity increased 75 basis points from June 30 to 7.98% as of the end of September.

Headwinds

  • Loan growth slowed during the third quarter as softer pipelines in the second quarter led to fewer fundings in the current period.
  • Loan growth was also impacted by higher payoffs in commercial banking and investment commercial real estate portfolios.
  • Third quarter noninterest income was $45.7 million, or $58.8 million on an adjusted basis, with strong earnings from foreign exchange, wealth management and the leasing business.
  • There were several large non-recurring items that impacted noninterest income, including $17.5 million of losses on securities, which included a $9.7 million impairment charge on two bonds secured by skilled nursing homes.
  • Nonperforming assets as a percent of assets increased 1 bp to 36 bps.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.0%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.5%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+7.1%

Q1 2018

Best reaction

-11.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+0.2%+2.8%
Q4 2025+5.8%+8.3%+3.2%
Q3 2025-0.9%-3.0%+0.5%
Q2 2025-1.1%+2.0%+4.1%
Q1 2025-4.5%-3.5%-0.0%
Q4 2024+1.8%+0.4%-3.0%
Q3 2024-4.3%+1.7%+17.2%
Q2 2024+6.8%+4.5%+1.8%
Q1 2024+0.1%-2.0%+0.2%
Q4 2023-2.5%-0.3%-6.9%
Q3 2023-8.3%-4.1%+7.7%
Q2 2023-5.4%-5.0%-10.4%
Q1 2023-0.9%-4.3%-9.0%
Q4 2022+4.9%+9.6%+8.4%
Q3 2022-0.8%+2.6%+6.3%
Q2 2022+2.9%+5.2%+12.0%
Q1 2022-5.8%-8.6%-11.1%
Q4 2021-2.4%-0.4%-1.7%
Q3 2021+2.0%+1.7%+2.8%
Q2 2021+0.0%+0.0%+4.6%
Q1 2021+4.1%+2.8%+8.5%
Q4 2020-3.9%+4.5%+17.6%
Q3 2020+4.7%+3.0%+21.1%
Q2 2020+6.2%+0.0%+1.9%
Q1 2020-1.2%+1.1%-7.8%
Q4 2019+0.2%+0.7%-0.8%
Q3 2019-3.0%-0.2%+0.3%
Q2 2019+3.3%+4.8%+2.4%
Q1 2019-1.2%-0.3%-6.6%
Q4 2018+0.2%+2.9%+8.3%
Q3 2018-11.6%-12.4%-2.7%
Q2 2018-1.4%-3.9%+0.0%
Q1 2018+7.1%+8.7%+10.1%
Q4 2017+3.7%+3.2%+2.5%
Q3 2017+4.6%+5.1%+1.5%
Q2 2017-7.6%-6.7%-12.2%
Q1 2017+6.2%+7.0%-4.0%
Q4 2016+2.4%+4.1%+4.8%
Q3 2016+0.5%+0.5%+19.5%
Q2 2016+3.2%+4.4%+5.2%
Q1 2016+0.5%
Q4 2015-2.8%
Q3 2015+3.8%
Q2 2015+3.9%
Q1 2015-4.7%
Q4 2014+0.5%
Q3 2014+5.3%
Q2 2014+2.0%
Q1 2014-1.6%
Q4 2013-0.5%
Q3 2013-0.8%
Q2 2013-0.7%
Q1 2013-0.5%
Q4 2012+1.3%
Q3 2012-3.8%
Q4 2011+0.5%
Q2 2012-1.6%
Q1 2012+2.3%
Q4 2009-0.7%
Q4 2010-0.7%
Q3 2011-6.1%
Q3 2010-6.1%
Q2 2010+0.1%
Q2 2011+0.1%
Q1 2010+2.2%
Q1 2011+2.2%

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