First Financial Bancorp Shines in Q4 2024 Earnings Report

First Financial Bancorp, a leading financial institution, has reported impressive results for the fourth quarter of 2024. The company's strong performance was highlighted during its recent conference call, with key executives presenting a detailed analysis of the company's financials.

Adjusted earnings per share came in at $0.71, marking a significant milestone as the company achieved a return on assets of 1.7% and a return on tangible common equity ratio of 19.9%. While short-term rates declined, leading to a reduction in net interest margin to 3.94%, the impact was mitigated by strong loan growth exceeding 7% on an annualized basis and total deposits surging by approximately 16% on an annualized basis.

The company's noninterest income witnessed robust growth during the fourth quarter, with leasing, foreign exchange, and wealth management income increasing by double-digit percentages from the linked quarter. Despite a 5% increase in expenses, driven by higher incentive compensation tied to strong fee income and overall performance, the workforce efficiency initiative continued, with 145 positions eliminated to date.

Asset quality remained relatively stable for the quarter, with nonperforming assets flat compared to the linked quarter at 0.36%. Classified assets increased by 7 basis points to 1.21% due to a mutually agreed-upon termination of a foreign exchange trade resulting in a $45 million obligation from the customer. Net charge-offs were slightly elevated due to the resolution of three loans that have been longer-term workouts.

For the full year, First Financial Bancorp reported excellent results, with adjusted earnings per share at $2.61 and returns on assets and tangible common equity of 1.4% and 19.9%, respectively. Net interest margin declined to 4.05% due to short-term rate decreases, but was offset by strong loan growth. Noninterest income increased by more than 13% to a record $241.8 million, led by growth in leasing and wealth management income.

The company's balance sheet experienced significant growth, with total loans increasing by 7.6% to $11.8 billion and total deposits growing by 7.2% to $14.3 billion. Tangible common equity increased by 56 basis points to 7.73%, and tangible book value per share rose from $12.38 to $14.15, a 14% increase.

Asset quality remained relatively stable for the year, with net charge-offs as a percentage of average loans declining 3 basis points to 30 basis points and nonperforming assets as a percentage of total assets decreasing by 2 basis points to 0.36%. The company's performance was hailed as an excellent year, with strong financials and growth across key areas.