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Mar 31, 2023

First Financial Q1 2023 Earnings Report

Announced first quarter 2023 financial results, marked by record revenue and strong earnings per share growth.

Key Takeaways

First Financial Bancorp reported a strong first quarter in 2023, with record quarterly revenue of $214.9 million and earnings per diluted share of $0.74, a 65% increase year-over-year on an adjusted basis. The company saw growth in net interest margin and loan balances, alongside stable credit quality and increased regulatory capital ratios.

Earnings per diluted share were $0.74, or $0.76 on an adjusted basis, representing a 65% increase year-over-year.

The company achieved a record quarterly revenue of $214.9 million.

Net interest margin on a fully tax-equivalent basis was 4.55%, an 8 bp increase from the linked quarter.

Loan growth was $134.4 million, equating to 5.3% on an annualized basis.

Total Revenue
$204M
Previous year: $148M
+38.4%
EPS
$0.76
Previous year: $0.46
+65.2%
Efficiency Ratio
54.3%
Previous year: 69.6%
-22.0%
Total Capital Ratio
13.66%
Tangible Book Value/Share
$10.8
Cash and Equivalents
$200M
Previous year: $230M
-13.3%
Free Cash Flow
$168M
Previous year: $141M
+19.3%
Total Assets
$16.9B
Previous year: $16B
+5.8%

First Financial

First Financial

Forward Guidance

The company is well-positioned to manage future uncertainty due to its profitability, net interest margin, ample liquidity, and strong levels of capital.

Positive Outlook

  • Strong profitability
  • Healthy net interest margin
  • Ample liquidity
  • Strong capital levels
  • Effective management of short-term rate increases

Challenges Ahead

  • Near-term uncertainty regarding the economy
  • Challenges for the industry
  • Seasonal outflows in public funds and business deposits
  • Potential impact of economic forecasts on ACL
  • Uncertainty regarding future economic conditions