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Sep 30, 2024
First Financial Q3 2024 Earnings Report
Announced third quarter 2024 financial results and quarterly dividend.
Key Takeaways
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.
First Financial
First Financial
First Financial Revenue by Segment
Revenue by Segment
Leasing Business Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.