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First Financial Q1 2025 Earnings Report
First Financial Bancorp reported a decrease in net income and earnings per share for the first quarter of 2025 compared to the previous quarter, but showed improvements in asset quality metrics.
Key Takeaways
First Financial Bancorp reported net income of $51.3 million and diluted EPS of $0.54 for the first quarter of 2025. Adjusted diluted EPS was $0.63. The company experienced a decrease in net interest margin but saw strong results from its wealth management and leasing businesses. Asset quality improved with a decline in net charge-offs and nonperforming assets.
Net income for Q1 2025 was $51.3 million, or $0.54 per diluted common share.
Adjusted diluted EPS was $0.63, and adjusted return on average assets was 1.33%.
Net interest margin on a fully tax-equivalent basis was 3.88%, a 6 basis point decline from the prior quarter.
Noninterest expenses decreased by 3.3% from the linked quarter, driven by lower incentive compensation and fraud losses.
First Financial
First Financial
First Financial Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.comLeasing Business Revenue
CapyFin.comBankcard Income Revenue
CapyFin.comClient Derivative Fees Revenue
CapyFin.comForeign Exchange Income Revenue
CapyFin.comLoan Sales Gains Revenue
CapyFin.comDeposit Account Service Charges Revenue
CapyFin.com Forward Guidance
The company anticipates modest loan growth in the second quarter, with healthy pipelines in Consumer, C&I, and ICRE business lines. They expect seasonal rebounds in fee income and continued expense management benefits from optimization efforts. Asset quality is expected to continue to improve.
Positive Outlook
- Expect modest level of growth in the second quarter due to healthy loan pipelines.
- Anticipate seasonal rebounds in fee income and a healthy overall increase.
- Expect additional benefits from ongoing expense optimization efforts.
- Asset quality metrics are expected to continue to improve in the near-term.
- Net interest margin is expected to expand in the near-term given current short-term interest rates.
Challenges Ahead
- Elevated prepayments in ICRE are expected to continue.
- Uncertainty regarding the outlook for the economy.
- Potential impact of tariffs on clients.
- Decline in loan yields outpaced the decrease in deposit costs in the current quarter.
- Seasonal fluctuations impacting fee income in the current quarter.