First Financial Bancorp Q3 EPS Rises to $0.77 as Board Sets $0.26 Dividend

First Financial Bancorp (FFBC ) reported net income of $81.2 million, or $0.77 per diluted common share, for the third quarter ended September 30, 2026, and its board of directors approved a quarterly dividend of $0.26 per common share, the bank holding company said in its third-quarter 2026 earnings release on October 27, 2026.

The results compare with net income of $76.5 million, or $0.73 per diluted share, in the second quarter of 2026 and $71.9 million, or $0.75 per diluted share, in the third quarter of 2025. For the first nine months of 2026, the company reported diluted earnings per share of $2.21 on net income of $232.1 million, versus $2.02 per share on net income of $193.2 million in the same period of 2025.

Return on average assets was 1.44% in the third quarter, up from 1.37% in the linked quarter, and return on average tangible common equity, a non-GAAP measure, was 18.67% versus 17.95% in the second quarter.

On an adjusted, non-GAAP basis, the company reported net income of $87.8 million and earnings per share of $0.84. President and CEO Archie Brown said adjusted earnings per share rose 11% from the third quarter of 2025 and were the highest in the company’s history. Brown said the company delivered record third-quarter revenue of $273.9 million and record adjusted fee revenue of $77.6 million, producing an adjusted return on assets of 1.56% and an adjusted return on tangible common equity of 20.2%. He said adjusted noninterest income represented 28% of total revenue.

Net interest margin was 4.05%, or 4.07% on a fully tax-equivalent, non-GAAP basis, a 9 basis point increase from the second quarter that the company attributed to a 13 basis point increase in asset yields, partially offset by a 4 basis point increase in funding costs. Net interest income totaled $196.3 million, up 22.3% from $160.5 million in the third quarter of 2025.

Noninterest income was $77.7 million, or $77.6 million on an adjusted basis. The company cited double-digit percentage growth from the linked quarter in wealth management income, bankcard income and client derivative fees, a $4.4 million, or 33.5%, increase in foreign exchange income, and leasing business income of $23.0 million.

Noninterest expenses were $165.7 million, or $156.9 million on an adjusted basis. The adjustments include $7.5 million of acquisition-related expenses, $0.8 million of amortization of tax credit investments and $0.6 million of other expenses the company does not expect to recur. The efficiency ratio was 60.5%, or 57.3% adjusted. The company attributed the increase from the prior quarter to compensation costs tied to fee income, along with increases in credit collection and healthcare costs, and Brown said the company expects expenses to moderate in the fourth quarter.

Loans, Deposits and Credit Quality

Loan balances increased $170.2 million from the linked quarter, or 4.9% on an annualized basis, driven by the commercial and industrial, consumer and Summit portfolios, and ending total loans stood at $13.9 billion. Average deposit balances rose $52.4 million, or 1.2% annualized, and increased $144.0 million excluding brokered CDs, as growth in interest-bearing demand accounts, money market accounts and retail CDs offset declines in brokered CDs, savings and noninterest-bearing accounts. The quarter-end balance sheet showed total assets of $22.3 billion and total deposits of $17.7 billion.

The total allowance for credit losses was $209.8 million, including $191.7 million for loans and leases and $18.2 million for unfunded commitments, equal to 1.38% of total loans. Quarterly provision expense was $8.9 million, and net charge-offs were $7.2 million, or 0.21% of average loans on an annualized basis. Nonperforming assets rose 2 basis points to 0.45% of total assets, while classified assets increased to 1.26% of total assets, a rise the release attributed primarily to the downgrade of a single ICRE relationship. Brown said the relationship involves multiple loans and that the company expects to resolve the workout over the next few quarters.

The total capital ratio increased 8 basis points to 15.83% and the common equity tier 1 ratio rose 21 basis points to 12.54%; the release notes that the September 30, 2026 regulatory capital ratios are preliminary. Tangible common equity was 7.81% of tangible assets, or 9.65% excluding the impact of accumulated other comprehensive income, and tangible book value per share fell 5.9% from the linked quarter to $15.65. Brown said tangible book value and tangible common equity declined in response to a sharp increase in interest rates during the second half of the quarter, with tangible common equity down 43 basis points from June 30.

Dividend and Pending Finward Acquisition

The $0.26 per share dividend is payable December 15, 2026, to shareholders of record as of December 1, 2026. Dividends declared per share were $0.25 in each of the prior four quarters, the release’s financial tables show.

The company also disclosed that it received Federal regulatory approval for its pending acquisition of Finward Bancorp (FNWD ) and expects to close the transaction on January 1, 2027, subject to state regulatory and Finward shareholder approvals. A registration statement on Form S-4 covering the First Financial shares to be issued in the transaction became effective with the SEC on September 28, 2026.

Brown said loan pipelines remain healthy entering the fourth quarter and that the company expects “low to mid single digit loan growth as we close out 2026.” He also acknowledged recently announced changes to the company’s senior leadership structure, saying they were designed to promote continuity, reinforce financial performance and maintain the company’s culture.

Executive management will host a conference call on Wednesday, October 28, 2026, at 8:30 a.m. Eastern Time to discuss the results. The company said the webcast will be archived on the investor relations section of its website for 12 months.