First Financial Bancorp Reports Mixed Q3 2024 Results, Assets and Loans Grow Amid Profitability Challenges

First Financial Bancorp, headquartered in Cincinnati, Ohio, reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased to $18.1 billion, up from $17.5 billion at the end of 2023. Total loans and leases rose to $11.6 billion, reflecting a growth from $10.9 billion, while total deposits also saw an increase to $13.9 billion from $13.4 billion.

For the third quarter of 2024, First Financial reported interest income of $257.1 million, a 10.8% increase from $232.1 million in the same quarter of 2023. However, total interest expense also rose significantly to $101.6 million, compared to $76.6 million a year earlier. This resulted in net interest income of $155.6 million, slightly up from $155.5 million in Q3 2023. Year-to-date net interest income decreased by 3.5% to $474.0 million compared to the same period in 2023.

Net income for the third quarter of 2024 was $52.5 million, down from $63.1 million in Q3 2023, with diluted earnings per share decreasing to $0.55 from $0.66. For the nine months ended September 30, 2024, net income totaled $163.9 million, down from $199.1 million in the prior year.

The company’s noninterest income for Q3 2024 was $45.7 million, a decrease of 25.7% from the previous quarter, primarily due to a decline in foreign exchange income and losses on investment securities. Year-to-date noninterest income also fell by 7.1% to $153.7 million.

First Financial's total noninterest expenses increased to $125.8 million in Q3 2024, up from $123.6 million in Q2 2024, driven by higher leasing business expenses and other operational costs. Year-to-date noninterest expenses rose by 3.4% to $371.7 million.

Strategically, First Financial completed the acquisition of Agile Premium Finance on February 29, 2024, for $96.9 million, which is expected to enhance its commercial loan offerings. The company recorded goodwill of $1.8 million from this acquisition.

The allowance for credit losses increased to $158.8 million as of September 30, 2024, up from $141.4 million at the end of 2023, reflecting a proactive approach to managing credit risk amid changing market conditions. The company’s capital ratios remained strong, with a Tier 1 capital ratio of 12.37% and a total capital ratio of 14.58%, both above regulatory requirements.

Overall, First Financial Bancorp's performance in Q3 2024 reflects a mix of growth in assets and loans, alongside challenges in profitability and noninterest income, as the company navigates a dynamic financial landscape.