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Dec 31, 2023
First Financial Q4 2023 Earnings Report
Reported net income of $56.7 million, or $0.60 per diluted common share, and loan growth of $286.4 million.
Key Takeaways
First Financial Bancorp reported a net income of $56.7 million, or $0.60 per diluted share, for Q4 2023. The company experienced loan growth of $286.4 million and an increase in average deposit balances by 12.9% on an annualized basis. Credit trends remained stable to improving during the quarter.
Earnings per diluted share were $0.60, or $0.62 on an adjusted basis.
Return on average assets was 1.31%, or 1.37% on an adjusted basis.
Net interest margin on FTE basis was 4.26%, a 7 bp decrease from the linked quarter.
Tangible Book Value increased $1.47, or 13.5% from linked quarter
First Financial
First Financial
Forward Guidance
First Financial Bancorp is well-positioned to manage the coming year and remains cautiously optimistic regarding asset quality in 2024.
Positive Outlook
- Strengthened team with the addition of talent in Wealth Management.
- Expanded into markets including Chicago, IL, Evansville, IN and Cleveland, OH.
- Solid loan production exceeding 6% in balance growth during 2023.
- Average deposit balances increased 2.4% in 2023 compared to the prior year.
- Tangible common equity ratio expanded by 122 basis points and tangible book value per share increased by 24% for the year.
Challenges Ahead
- Asset quality trends were elevated during 2023.
- Net charge-offs increased to 33 basis points for 2023, compared to a record low of 6 basis points in 2022.
- Non-performing assets to total assets ended the year at 38 basis points.
- Rising funding costs outpaced asset yields.
- Leasing income declined due to lower end of term fees and a shift to finance leases.