Earnings call transcript: First Financial Bancorp beats Q3 2025 forecasts

First Financial Bancorp (FFBC) reported its third-quarter earnings for 2025, surpassing Wall Street expectations. The company posted an adjusted earnings per share (EPS) of $0.76, slightly above the forecast of $0.75, representing a 1.33% surprise. Revenues also exceeded predictions, reaching $234 million against the expected $229.72 million, marking a 1.86% surprise. Following the earnings announcement, FFBC’s stock rose by 1.13% in after-hours trading, reflecting investor optimism. With a market capitalization of $2.31 billion, First Financial maintains a strong position in the banking sector. InvestingPro analysis reveals the company has maintained dividend payments for 43 consecutive years, demonstrating remarkable financial stability.

Key Takeaways

• First Financial Bancorp’s Q3 2025 EPS of $0.76 surpassed expectations.
• Revenue reached a record $234 million, driven by a robust net interest margin.
• Stock price increased by 1.13% in after-hours trading.
• The company anticipates mid-single-digit loan growth in Q4.

Company Performance

First Financial Bancorp demonstrated strong financial performance in Q3 2025, driven by a robust net interest margin and diverse income streams. The company’s adjusted net income stood at $72.6 million, with an adjusted return on assets of 1.55% and a return on tangible common equity of 19.3%. These figures underscore the company’s industry-leading profitability and solid capital ratios, despite a modest decline in loan balances during the quarter.

Financial Highlights

• Revenue: $234 million, exceeding the forecast by $4.28 million.
• Earnings per share: $0.76, surpassing the forecast by $0.01.
• Net interest margin: 4.02%, contributing to record revenue.

Earnings vs. Forecast

First Financial Bancorp’s Q3 2025 earnings exceeded both EPS and revenue forecasts. The EPS of $0.76 was a 1.33% surprise over the forecast, while revenues of $234 million represented a 1.86% surprise. This performance is consistent with the company’s historical trend of beating expectations, further solidifying its strong market position.

Market Reaction

Following the earnings release, FFBC’s stock price increased by 1.13% to $24.4 in after-hours trading. This positive movement reflects investor confidence in the company’s performance and future prospects. The stock is trading closer to its 52-week high of $31.18, indicating a strong recovery from its 52-week low of $21.1. InvestingPro data suggests the stock is currently undervalued, with a P/E ratio of 9.7 and an attractive dividend yield of 4.22%. According to InvestingPro’s analysis, there are several more key metrics and insights available for subscribers, including detailed Fair Value calculations and comprehensive financial health scores.

Outlook & Guidance

Looking ahead, First Financial Bancorp expects mid-single-digit loan growth in Q4 2025, with fee income projected between $77-$79 million and non-interest expenses anticipated between $142-$144 million. The company is also preparing for the pending acquisitions of Westfield and BankFinancial, which are expected to close in early November and Q1 2026, respectively. InvestingPro reports a strong overall financial health score of 2.51 (GOOD), suggesting robust fundamentals to support these growth initiatives. The company’s five-year revenue CAGR of 5% and recent dividend growth of 8.7% further reinforce its expansion potential. Discover more detailed insights and metrics with InvestingPro’s comprehensive research report, available for over 1,400 US stocks.

Executive Commentary

"We’re very proud of our financial performance for the first nine months of the year, which resulted in industry-leading profitability," said Archie Brown, CEO. He expressed optimism for the future, stating, "We expect to have another strong quarter to close 2025 and build positive momentum as we head into 2026."

Risks and Challenges

• Potential for interest rate cuts impacting net interest margins.
• Competition in deposit markets remains moderate but could intensify.
• Integration risks associated with pending acquisitions.
• Economic uncertainties that could affect loan growth projections.
• Regulatory changes impacting banking operations.

Q&A

During the earnings call, analysts inquired about the company’s NDFI loan exposure, which stands at $434 million. Management also provided insights into margin sensitivity to anticipated rate cuts and discussed potential future capital actions.

Full transcript - First Financial Bancorp (FFBC) Q3 2025:

Rob, Conference Call Operator: Thank you for standing by and welcome to the First Financial Bancorp Third Quarter 2025 Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star one. Thank you. I’d now like to turn the call over to Scott Crawley. You may begin.

Scott Crawley, Investor Relations, First Financial Bancorp: Thank you, Rob. Good morning, everyone, and thank you for joining us on today’s conference call to discuss First Financial Bancorp’s third quarter and year-to-date financial results. Participating on today’s call will be Archie Brown, President and Chief Executive Officer, Jamie Anderson, Chief Financial Officer, and Bill Harrod, Chief Credit Officer. Both the press release we issued yesterday and the accompanying slide presentation are available on our website at www.bankandfirst.com under the Investor Relations section. We’ll make reference to the slides contained in the accompanying presentation during today’s call. Additionally, please refer to the forward-looking statement disclosure contained in the Third Quarter 2025 Earnings Release, as well as our SEC filings for a full discussion of the company’s risk factors. The information we will provide today is accurate as of September 30, 2025, and we will not be updating any forward-looking statements to reflect facts or circumstances after this call.

I now turn it over to Archie Brown.

Archie Brown, President and Chief Executive Officer, First Financial Bancorp: Thanks, Scott. Good morning, everyone, and thank you for joining us on today’s call. Yesterday afternoon, we announced our financial results for the third quarter. The third quarter 2025 was another outstanding quarter for First Financial Bancorp. Adjusted net income was $72.6 million, and adjusted earnings per share were $0.76, which resulted in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3%. We achieved record revenue in the third quarter, driven by a robust net interest margin and record non-interest income. We have successfully maintained asset yields while moderating our funding costs, which combined to result in an industry-leading net interest margin. In addition, our diverse income streams remained a positive differentiator for us, with our adjusted non-interest income representing 31% of total net revenue for the quarter. Expenses continue to be well managed.

Excluding incentives tied to strong performance and the record fee income, total non-interest expenses were flat compared to the second quarter. Our workforce efficiency efforts continued during the period, and to date, we have successfully reduced our total time equivalence by approximately 209% since we began the initiative two years ago. We expect further efficiencies subsequent to the integration of our pending acquisitions. Loan balances declined modestly during the quarter, falling short of our expectations. Lower production in our specialty businesses, along with a greater percentage of construction originations, which fund over time, drove the modest decline. Loan pipelines are very healthy as we enter the fourth quarter, and we expect to return to mid-single-digit loan growth to close out the year. Asset quality metrics were stable for the third quarter.

Non-performing assets were flat as a percent of assets, and annualized net charge-offs were 18 basis points, which was a slight improvement from the linked quarter. We’re very happy that our strong earnings led to continued growth in tangible book value per share and tangible common equity during the quarter. Tangible book value per share of $16.19 increased 5% from the linked quarter and 14% from a year ago, while tangible common equity increased 47 basis points from June 30 to 8.87% at the end of September. I’ll now turn the call over to Jamie to discuss these results in greater detail, and after Jamie is done, I’ll wrap up with some additional forward-looking commentary and closing remarks. Jamie.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Thank you, Archie, and good morning, everyone. Slides four, five, and six provide a summary of our most recent financial results. The third quarter was another exceptional quarter with outstanding earnings, robust net interest margin, and record fee income. Our net interest margin remains very strong at 4.02%. Asset yields declined slightly, while we managed deposit costs to a modest increase. Loan balances declined slightly during the quarter as production slowed in our specialty lending areas and slower funding construction originations increased as a percentage of the portfolio. Average deposit balances increased $157 million due to higher broker deposits and money markets, offset by a seasonal decline in public funds. We maintain 21% of our total balances in non-interest bearing accounts and remain focused on growing lower-cost deposit balances. Turning to the income statement, third quarter fee income was another record, led by our leasing and foreign exchange businesses.

Additionally, we had higher syndication fees and income on other investments. Non-interest expenses increased from the linked quarter due to an increase in incentive compensation, which is tied to fee income. Our efficiency initiatives continue to impact our results positively and remain ongoing. Our ACL coverage increased slightly during the quarter to 1.38% of total loans. We recorded $9.1 million of provision expense during the period, which was driven by net charge-offs. Overall, asset quality trends were in line with expectations, with lower net charge-offs and non-performing asset balances remaining flat. Net charge-offs were 18 basis points on an annualized basis, while NPAs and classified assets were both relatively flat for the period. From a capital standpoint, our ratios are in excess of both internal and regulatory targets. Tangible book value increased $0.79 to $16.19, while our tangible common equity ratio increased 47 basis points to 8.87%.

Slide seven reconciles our GAAP earnings to adjusted earnings, highlighting items that we believe are important to understanding our quarterly performance. Adjusted net income was $72.6 million or $0.76 per share for the quarter. Non-interest income was adjusted for a small loss on the sale of investment securities, while non-interest expense adjustments exclude the impact of acquisition and efficiency costs, tax credit investment write-downs, and other expenses not expected to recur. As depicted on slide eight, these adjusted earnings equate to a return on average assets of 1.55%, a return on average common equity of 19%, and a pre-tax pre-provision ROA of 2.15%. Turning to slides nine and ten, net interest margin decreased three basis points from the linked quarter to 4.02%. Asset yields declined two basis points from the prior quarter, while total funding costs increased one basis point.

Slide 12 illustrates our current loan mix and balance changes compared to the linked quarter. Loan balances decreased $72 million during the period. As you can see on the right, the decline was driven by decreases in the Oak Street, ICRE, and CNI portfolios, which outpaced growth in Summit and Consumer. Slide 14 shows our deposit mix as well as a progression of average deposits from the linked quarter. In total, average deposit balances increased $157 million during the quarter, driven primarily by a $166 million increase in brokered CDs and a $106 million increase in money market accounts. These increases were offset by a seasonal decline in public funds. Slide 16 highlights our non-interest income for the quarter. Total fee income increased to $73.6 million during the quarter, which was the highest quarter in the history of the company. Bannockburn and Summit both had solid quarters.

Additionally, other non-interest income increased $2.8 million for the quarter due to higher syndication fees and elevated income on other investments. Non-interest expense for the quarter is outlined on slide 17. Core expenses increased $5.7 million during the period. This was driven by higher incentive compensation related to fee income and the overall strong performance by the company. Turning now to slides 18 and 19, our ACL model resulted in a total allowance, which includes both funded and unfunded reserves of $180 million and $9.1 million of total provision expense during the period. This resulted in an ACL that was 1.38% of total loans, which was a four basis point increase from the second quarter. Provision expense was primarily driven by net charge-offs, which were 18 basis points for the period.

Additionally, our NPAs to total assets held steady at 41 basis points, and classified asset balances totaled 1.18% of total assets. We continue to believe that we have modeled conservatively to build a reserve that reflects the losses we expect from our portfolio. We anticipate our ACL coverage will remain relatively flat in future periods as our model responds to changes in the macroeconomic environment. Finally, as shown on slides 20 and 21, capital ratios remain in excess of regulatory minimums and internal targets. During the third quarter, tangible book value increased to $16.19, while the TCE ratio increased 47 basis points to 8.87%. Our total shareholder return remains strong, with 33% of our earnings returned to our shareholders during the period through the common dividend. We maintain our commitment to provide an attractive return to our shareholders, and we continue to evaluate capital actions that support that commitment.

I’ll now turn it back over to Archie for some comments on our outlook. Archie.

Archie Brown, President and Chief Executive Officer, First Financial Bancorp: Thank you, Jamie. Before we conclude our prepared remarks, I want to comment on our outlook for the fourth quarter, which can be found on slide 22. As we close the year, we expect origination volumes to increase, which should accelerate our growth. Specific to the fourth quarter, excluding Westfield, we expect loan growth to be in the mid-single digits on an annualized basis. We expect the core deposit balances to increase and combine with seasonal public fund inflows to result in strong deposit growth. Our net interest margin remains among the highest in the peer group, and we expect it to be in a range between 3.92% and 3.97% over the next quarter, assuming a 25 basis point rate cut in both October and December. This includes a modest bump in margin from the addition of Westfield in early November.

We expect our fourth quarter credit costs to approximate third quarter levels and ACL coverage to remain stable as a percent of loans. We’re estimating fee income to be between $77 million and $79 million, which includes $18 million to $20 million for foreign exchange and $21 million to $23 million for the leasing business revenue. This range includes the expected impact from Westfield. Non-interest expense is expected to be between $142 million and $144 million and reflect our continued focus on expense management. This range includes the impact from Westfield, which is expected to be approximately $8 million for the months of November and December. While we remain confident that we will realize our modeled cost savings, we expect the majority of those savings to materialize in the middle of 2026 once Westfield has been fully integrated.

With respect to our pending acquisitions, we have received formal regulatory approval for the Westfield transaction and anticipate closing in early November. Our initial preparations for the BankFinancial close are underway, and we are more excited than ever to expand our reach into the Chicago market. We have filed the necessary applications and expect to receive approval from the regulators in coming months, eyeing a close during the first quarter of 2026. We’re very excited to have the Westfield and BankFinancial Associates join our team. In summary, we’re very proud of our financial performance for the first nine months of the year, which resulted in industry-leading profitability. We expect to have another strong quarter to close 2025 and build positive momentum as we head into 2026. With that, we’ll now open up the call for questions.

Rob, Conference Call Operator: Thank you. We’ll now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. Your first question today comes from the line of Brendan Nozel from Hogue Group. Your line is open.

Hey, good morning, everybody. Hope you’re doing well.

Scott Crawley, Investor Relations, First Financial Bancorp: Morning, Brendan.

I’m new to starting off here on a topic that’s of interest today, NDFI loan exposure. I think if I look at your reg filings from last quarter, it’s a little over $450 million or 4% of loans. I know that it’s not huge, but can you just kind of walk us through that book and let us know whether that exposure falls into any of the known commercial verticals that you already have tonight? Thanks.

Yeah, Brendan, no, we’ll have Bill Harrod cover that. Go ahead, Bill.

All right, great. We’ve got, as of the end of the quarter, about $434 million in the NDFI portfolio. It’s a diversified, conservatively managed, and anchored in high investment grade tier with currently no adversely rated credit. The bulk of the portfolio is made up of traditional REITs of about $304 million across 46 notes, averaging about $7 million, consisting of a variety of public traded or privately held entities with investment grade or equivalent. We do have a securitization book within that portfolio of $73 million across seven relationships with loan structure using S&P methodology to high investment grade ratings, and we monitor those on a monthly basis with buying basis and independent third-party exams on a routine basis. That makes up the bulk of what we have in that NDFI portfolio.

Awesome. That’s a really helpful color. Thanks for having that prep for us. Maybe turning to the net interest margin, totally get the guide for next quarter, no surprise given recent and forthcoming rate cuts. I’m just kind of curious, though, if we get those two cuts in the fourth quarter, how should we think about margin early in next year? I think in the past, you said that each cut is 5 to 6 basis points of near-term pressure before it grinds back up on lag funding costs. Any color there will be helpful.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Yeah, Brendan, this is Jamie. On the margin, the other thing you got to keep in mind is we have Westfield coming into the mix, so that’s going to create a little bit of noise, and it actually helps us going forward here mitigate a little bit of our asset sensitivity. If you look at kind of the legacy company in the margin, the way that it reacts to those 25 basis point cuts, like I said, and you mentioned it as well, we get about five basis points of margin pressure for each of those 25 basis point cuts. The way the timing of that, the way that will kind of fold in is that you get a little bit more pain immediately from the cut, and then as deposit costs catch up, we start to actually move that back up. Really five basis points of pressure.

If you think about our margin right now, in that four range, if we get those two, then we kind of start the year in that 390-ish range. When you factor in Westfield, and with the purchase accounting and how that will work, we get a little bit of improvement in the margin from them. That starts to help mitigate some of that pressure if we have those expected rate cuts here at the end of the year.

Yep, yep. Okay. That makes sense. Thank you for taking my questions.

Scott Crawley, Investor Relations, First Financial Bancorp: Thanks, Brendan.

Rob, Conference Call Operator: Your next question comes from a line of Mark Shutley from KBW. Your line is open.

Hey, guys, good morning.

Scott Crawley, Investor Relations, First Financial Bancorp: Morning, Mark. Sorry.

Maybe one more on the margin. I’m trying to think about, you know, on the asset side, loan yields were strong and actually ticked up in the quarter. I was just curious, like, what new loan originations are coming on today with you guys sort of returning to growth and what you’re expecting, you know, for the total sort of portfolio yield in the near term?

Yeah, Mark, this is Archie. I’ll start, and Jamie, you can kind of come in if you want to amplify a bit. You know, the rate cut certainly that we had affects origination yields as well. We were probably before the cut around 7% on origination yields, and it’s closer, I guess, like high 6%. If you said 6.80%, 6.90%, it’s going to come in closer to the mid-6% range. You look at the month of September, it was probably right around 6.50%, maybe 6.50% and change. We’d say sort of right now in that range, it may drop down a little bit more with some more rate cuts because, again, a lot of what we do is commercial-oriented, you know, tied to variable rates.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Yeah. Mark, like we’ve talked about in previous quarters, if you, again, looking at the legacy First Financial Bancorp portfolio absent Westfield, we still have about 60% of our loan book that moves on the short end. Obviously, those cuts will impact the yield on the loan side.

That makes sense. Maybe just on the growth, you mentioned pipelines are strong, and I was just curious, what specific verticals or markets you expect to drive that growth over the next couple of quarters? Thanks.

Scott Crawley, Investor Relations, First Financial Bancorp: Yeah, Mark, this is Archie again. Maybe talk about loan growth kind of overall. Our production, if you just look at total commitments, Q3 was on par with Q2, so pretty strong. I would argue it’s the strongest of the year in both cases. We saw the actual fundings from that drop compared to what we saw in prior quarters. Lower fundings, primarily construction-related. We did see a dip in line utilization in the commercial side that accounted for a little bit of the lower overall growth in the quarter. As we look in Q4, strong commercial is the biggest driver. We’ve got different verticals within commercial, but strong commercial is the big driver. Summit funding, this is always their peak quarter for production. That’ll be another big driver. Commercial real estate will have a little bit of growth is what we’re projecting in Q4.

Probably the only vertical that has a little bit of pressure is in our Oak Street group. Just looks like they’ve got a lot more payoff pressure that we’re expecting here in Q4. The combination of it all gets you to the number that we’re projecting of 5% annualized growth.

Yeah, that makes sense. Appreciate the color. Thanks for taking my questions.

Thanks, Mark.

Rob, Conference Call Operator: If you would like to ask a question, press star, then the number one on your telephone keypad. Your next question comes from a line of Daniel Tamayo from Raymond James. Your line is open.

Thank you. Good morning, guys.

Scott Crawley, Investor Relations, First Financial Bancorp: Morning, Danny.

Maybe just one on the fees and expenses. The 4Q guide pulling out Westfield just for a second was higher than what I, you know, what we were looking for and certainly what the 3Q number was. Just curious if there’s something seasonal, unusual, unique in the fourth quarter, or if you can kind of give us some indication of what the run rates would look like going into 2026.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Yeah, Danny, it’s Jamie. Really, the big impact from the third quarter to the fourth quarter in that, like, again, I think you’re looking at just ex-Westfield, kind of the legacy First Financial numbers, is really coming from Bannockburn. The forecast that we’re getting from them for the fourth quarter is a little higher even than what we had in the strong third quarter. A little bit of a bump as well in Summit related to the operating leases. Our wealth department, especially on the M&A and the investment banking side, is up just a little bit from that division that we have there. It’s really those three areas, primarily, though, driven by Bannockburn. Like we have talked before, Danny, they can bounce around a little bit.

To kind of talk about that long term, we look at that business year over year now as growing generally in that 10% range.

Scott Crawley, Investor Relations, First Financial Bancorp: Yeah, Jamie, those are all commission-based kind of businesses. When they do well, you’re going to see more commission paid out, which drives the salary cost.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Yep.

That’s great. No, that’s very helpful. Excuse me. My other question, I guess, on the credit side. A good quarter from a credit perspective guiding to similar credit costs. Just curious how long you think those play out. I think in the past, we’ve talked about a little bit higher run rate on the charge-off side. Any read-throughs in the near term past the fourth quarter on credit?

Yeah, Danny, this is Archie. I don’t, I mean, I think it’s kind of steady as we go. We’ve, I think, been saying all year 25 to 30 basis points, kind of mid-20s, you know, seems to be the run rate for us in the current environment. I think, over a period of quarters, that’s what we would expect.

Understood. Okay. Lastly, on the capital front, you got the two deals closing here in the near term. You take a little bit of a hit to capital, but curious, you’ll still have pretty strong CET1. How you’re thinking about buybacks, you probably think that stock is a little undervalued right now. Once we get past the deals, if there’s a bogey you’re looking at on the capital side or any color there would be great.

Yeah, Danny, this is Jamie. Yeah, I think you said it well. What we’ll do here over the next, really, probably two to three quarters is let the deals flow in and kind of see where we’re shaken out in terms of capital ratios at that point. I mean, we are building TCE relatively and tangible book value relatively quickly at this point. We will take, so the TCE takes about a 120 basis point hit once we close the Westfield deal just because of the all-cash nature of it. We’ll let the next two or three quarters kind of play out and then see where we are and see where we’re trading in terms of a multiple at that point. If we’re trading anywhere in that 150 of tangible book value or below, we would potentially look at buybacks at that point.

Great. Thanks for all the color, guys. Appreciate it.

Scott Crawley, Investor Relations, First Financial Bancorp: Yep, too, Daniel.

Rob, Conference Call Operator: Your next question comes from a line of Terry McEvoy from Stephens Inc. Your line is open.

Hi, thanks. Good morning, everybody.

Scott Crawley, Investor Relations, First Financial Bancorp: Morning, Terry.

From talking to some of the other banks that are in your metro markets in your footprint, I am kind of surprised with the deposit competition, a bit stronger than I would have guessed. Your cost of funds is up, up a few basis points quarter over quarter. If you maybe just talk about deposit competition and you didn’t have loan growth this quarter, next quarter you’re guiding towards that. Does that kind of drive those deposit costs higher as you look to fund that growth?

Yeah, Terry, this is Archie. I’ll start. It was modestly up for the quarter. I would argue they’re just flat-ish. With the rate cut that occurred, we did take some, I think, decisive actions on the deposit side that went into effect really this quarter. Now we have more, of course, more short-term rate cuts coming, but we would expect a reduction in our deposit cost going forward Q4. It was pretty, did a pretty aggressive cut. The market’s competitive, but if you look at our loan-to-deposit ratio, and we felt, even with some loan growth, we felt we could take a little bit more aggressive actions. We’ll look to do more here with more Fed cuts. I think one of the things we like about BankFinancial, again, one, they have lower deposit and funding costs than we do.

That market, from what we can see, still has a little more rational pricing than what we’re seeing here kind of in Southwest Ohio.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Yeah, the other thing, Terry, to keep in mind, we do have a little bit higher, some loan growth in the fourth quarter and then going forward. We don’t think that puts a lot of pressure on our deposit costs because of the liquidity that we get coming in, especially in the BankFinancial deal. If it closes in the first part of 2026, they already have a relatively low loan-to-deposit ratio, and we’re selling the multifamily portfolio, which will then create even more liquidity for us to utilize for loan growth or to pay off borrowings or to reinvest.

That’s great. Thank you. Nice to see the FX trading and the 4Q guide higher at 18 to 20. I just want to make sure that run rate looking on into 2026, do you think that is more consistent of next year, or is this more of just a couple of strong quarters and next year we’ll go back to some of your prior comments on the outlook for that revenue line?

Scott Crawley, Investor Relations, First Financial Bancorp: Q4 would be a peak for them, Terry, if they hit the numbers that are being projected. As Jamie said, it sort of bounces around. We look at it more on kind of an annual or kind of four-quarter basis, rolling even. They will, we’ve owned them now for quite a while. What we’ve observed is they grow, they may flatten out a little bit, then they hit another growth spurt. If you think 5 to 10% kind of growth rate, I think you’re in the ballpark for what we would expect them to do.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Yeah, Terry, this is Jamie. As we look out kind of into 2026, I mean, I wouldn’t annualize this fourth quarter number that we’re talking about. I would look more into 2026 at like a $65 to $70 million, you know, type of a run rate for them.

Perfect. Again, thanks for taking my questions. Have a nice weekend.

Scott Crawley, Investor Relations, First Financial Bancorp: Thanks, Terry.

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Thanks, Jamie.

Rob, Conference Call Operator: Your next question comes from the line of John Arpstrom from RBC Capital Markets. Your line is open.

Hey, good morning, guys.

Scott Crawley, Investor Relations, First Financial Bancorp: Hey, John.

Hey, Jamie, in your prepared comments, you touched on the workforce efficiency efforts. Can you talk a little bit about where you are in that journey? When you look at the two acquisitions, what kind of opportunities do you see there? It seems like you’re going to apply this framework over the top of those two deals.

Yeah, John, this is Archie. I’ll start. We’re probably 90% of the way through the company, the First Financial legacy company now. There’s a little bit left in some areas, but it’s probably going to be a couple of quarters more to get a little bit of opportunity out of those areas. As I think we alluded to in our comments, we think the opportunity to continue to get efficiency comes from the two acquisitions. I think in the Westfield case, we had set around 40% expense reduction from the combination. We’re well on our way to achieve that, maybe slightly exceed it. BankFinancial was maybe just a little bit less because there’s a bigger branch count. What we had modeled, again, we’re well on our way to exceed that. That includes us in both those markets, adding back roles to drive more revenue.

Some of the businesses we have that maybe those banks didn’t have, we’re adding the appropriate people to help us grow in those markets. Even with that, we would still achieve the expense reductions that we modeled in those deals.

Okay, that makes sense. Some good opportunities there, obviously, for production. Terry took a couple of my questions on deposits, but Jamie, can you just remind us of the typical seasonal flows on deposits that you see in the fourth quarter?

Jamie Anderson, Chief Financial Officer, First Financial Bancorp: Yeah, just to remind you and everybody else, we get a seasonal bump in public funds, mainly from Indiana, where property taxes are due. We get those in May and November. Typically, we will get, call it around $150 to $200 million extra deposits in those quarters on average. They are a little bit more skewed, I would say, to the second quarter, but call it $150 to $200 million in both of those quarters. They run out in the subsequent quarter and go back down to the base level. That’s pretty much like clockwork. It happens pretty much every quarter. That’s what you saw here in the third quarter, those public funds running down by $100 to $150 million. We just replace those with, sometimes we just replace those with brokered CDs or borrowings.

Yeah, no, okay. That’s helpful. Thanks a lot, guys.

Scott Crawley, Investor Relations, First Financial Bancorp: Yep. See you, John.

Rob, Conference Call Operator: That concludes our question and answer session. I will now turn the call back over to Archie Brown for closing comments.

Archie Brown, President and Chief Executive Officer, First Financial Bancorp: Thank you, Rob. I want to thank everybody for joining us today. We really feel great about the quarter we had and are excited about the fourth quarter and the momentum we’re building for 2026 with the pending acquisitions. We look forward to talking to you again in a quarter. Have a great day and weekend.

Rob, Conference Call Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.

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