In This Article:
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Adjusted Earnings Per Share: $0.67
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Return on Assets: 1.42%
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Return on Tangible Common Equity: 19.77%
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Net Interest Margin: 4.08%
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Average Deposit Balance Growth: 4.9% annualized
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Noninterest Income: $45.7 million, $58.8 million adjusted
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Noninterest Expenses: Relatively flat compared to prior quarter
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Allowance for Credit Losses (ACL): 1.37% of total loans
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Net Charge Offs: 25 basis points annualized
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Nonperforming Assets: 36 basis points of total assets
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Tangible Book Value Per Share: $14.26, increased 10% from linked quarter
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Tangible Common Equity Ratio: 7.98%, increased 75 basis points from June 30th
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Adjusted Net Income: $63.6 million
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Provision Expense: $10.6 million
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Total Fee Income: $46 million, $59 million adjusted
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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First Financial Bancorp (NASDAQ:FFBC) reported a strong adjusted earnings per share of $0.67, with a return on assets of 1.42% and a return on tangible common equity of 19.77%.
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The net interest margin remained robust at 4.08%, with only a slight decline of 2 basis points from the previous quarter.
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Average deposit balances grew by 4.9% on an annualized basis, indicating strong deposit growth.
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Asset quality remained stable, with net charge-offs at 25 basis points on an annualized basis, aligning with expectations.
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Tangible book value per share increased by 10% from the previous quarter and over 30% from the same quarter last year, reaching $14.26.
Negative Points
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Loan growth slowed during the third quarter due to softer pipelines and higher payoffs in commercial banking and commercial real estate portfolios.
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Noninterest income was impacted by several large non-recurring items, including $17.5 million of losses on securities.
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The cost of deposits increased by 5 basis points compared to the previous quarter, although the pace of growth declined.
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Noninterest expenses increased slightly due to higher leasing expenses and a supplemental contribution to the foundation.
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The allowance for credit losses (ACL) coverage increased slightly, indicating a cautious approach to potential credit risks.
Q & A Highlights
Q: Can you provide insights into the expected loan growth for the fourth quarter and beyond, considering recent business additions? A: Archie Brown, President & CEO, stated that they anticipate mid to upper single-digit annualized loan growth for 2025, with a balanced approach across portfolios. They are rationalizing lower-return relationships, which may temper growth but still expect mid to high single-digit growth.