First Financial reports record revenue, raises dividend

CINCINNATI - First Financial Bancorp. (NASDAQ:FFBC), a regional bank with a market capitalization of $2.28 billion, reported second quarter net income of $70.0 million, or $0.73 per diluted share, up from $51.3 million, or $0.54 per share, in the first quarter of 2025. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment, trading at an attractive P/E ratio of 9.86x.

The Cincinnati-based bank holding company achieved record quarterly revenue of $226.3 million, driven by a robust net interest margin of 4.05% on a fully tax-equivalent basis, representing a 17 basis point increase from the first quarter. InvestingPro data reveals the company maintains strong profitability metrics, with analysts forecasting continued profit growth for the year ahead.

Return on average assets for the second quarter reached 1.52%, while return on average tangible common equity was 19.61%. The bank’s efficiency ratio stood at 56.9%, or 56.4% on an adjusted basis.

First Financial’s loan portfolio grew at an annualized rate of 2% during the quarter, with increases in commercial and industrial, Agile, Summit and consumer loans offsetting elevated prepayments in commercial real estate. Average deposits increased at an annualized rate of 3%.

Asset quality metrics remained stable, with net charge-offs declining to 0.21% of total loans, down 15 basis points from the first quarter. Nonperforming assets increased slightly to 0.41% of total assets.

The bank maintained strong capital positions, with its total capital ratio increasing 8 basis points to 14.98% and tangible common equity ratio rising to 8.40%.

First Financial’s Board of Directors approved a quarterly dividend increase of 4.2% to $0.25 per share, payable on September 15, 2025, to shareholders of record as of September 2, 2025. This continues the company’s impressive 43-year streak of consecutive dividend payments, with the stock currently offering a competitive 4.03% dividend yield. For deeper insights into First Financial’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

"I am thrilled with our performance this quarter," said Archie Brown, President and CEO. "The Company’s industry-leading profitability was once again driven by a robust net interest margin."

The bank also noted that its previously announced acquisition of Westfield Bank in Northeast Ohio remains on track, with regulatory applications filed and closing expected to occur this year.

This article is based on a press release statement from First Financial Bancorp.

In other recent news, First Financial Bancorp reported its Q1 2025 earnings, with an adjusted earnings per share of $0.63, aligning with analysts’ expectations. However, the company experienced a revenue shortfall, posting $200.38 million compared to the anticipated $214.8 million. Additionally, First Financial Bancorp announced a definitive agreement to acquire Westfield Bancorp for $325 million in a cash and stock deal, which includes $260 million in cash and 2.75 million shares valued at $65 million. This acquisition is projected to enhance earnings per share by approximately 12% in 2026, despite an 8% dilution in tangible book value.

Raymond James maintained its Market Perform rating on the company, describing the acquisition as a "solid bolt-on" at a digestible price. Meanwhile, RBC Capital Markets adjusted its price target for First Financial Bancorp from $30 to $27, maintaining a Sector Perform rating. This adjustment follows a review of the company’s first-quarter performance, which was deemed satisfactory despite some moderation. At the recent Annual Meeting of Shareholders, several key proposals were approved, including the election of directors to serve until 2026, with a strong shareholder turnout of over 89%.

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