First Financial Bancorp. (FFBC) Bundle
A Brief History of First Financial Bancorp
First Financial Bancorp, a financial holding company based in Cincinnati, Ohio, has a history of steady growth and resilience in the banking sector. As of 2024, the company continues to demonstrate strong financial performance despite economic headwinds.
2024 Financial Performance
For the third quarter of 2024, First Financial Bancorp reported net income of $52.5 million, or $0.55 per diluted share. This reflects a decrease from $60.8 million, or $0.64 per diluted share in the previous quarter. For the nine months ending September 30, 2024, earnings per diluted share were $1.74, down from $2.12 in the same period of 2023.
Revenue Breakdown
The company's revenue was primarily driven by net interest income, which reached $156.9 million for the third quarter of 2024. The total interest income was $257.1 million, a 10.8% increase from the same quarter in 2023.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $52.5 million | $60.8 million | $63.1 million |
| Earnings per Share (Diluted) | $0.55 | $0.64 | $0.67 |
| Total Interest Income | $257.1 million | $252.7 million | $232.1 million |
| Net Interest Income | $156.9 million | $155.5 million | $155.4 million |
Interest and Noninterest Income
In detail, the interest income for loans and leases, including fees, was $215.4 million, a 12.1% increase year-over-year. The total noninterest income for the quarter was reported at $45.7 million, down from $56.6 million in the previous quarter, largely due to a $17.5 million loss on securities.
Expenses and Efficiency
Noninterest expenses totaled $125.8 million, which is a 1.8% increase from the linked quarter. The efficiency ratio stood at 62.5%, indicating the bank's operational efficiency in managing costs relative to its income.
Asset Quality and Capital Ratios
First Financial Bancorp maintained a robust capital position, with a total capital ratio of 14.58% and a Tier 1 common equity ratio of 12.04%. The allowance for credit losses was $158.8 million, representing an allowance to total loans ratio of 1.37%.
| Capital Ratios | Q3 2024 | Q2 2024 |
|---|---|---|
| Total Capital Ratio | 14.58% | 14.47% |
| Tier 1 Common Equity Ratio | 12.04% | 11.78% |
| Allowance for Credit Losses Ratio | 1.37% | 1.36% |
Market Position
As of 2024, First Financial Bancorp continues to strengthen its market position within the regional banking sector. The bank has focused on enhancing its digital banking services and expanding its footprint through strategic partnerships and acquisitions.
Overall, First Financial Bancorp's performance metrics indicate a solid operational foundation, with ongoing efforts to adapt to changing market conditions while maintaining strong financial health.
A Who Owns First Financial Bancorp. (FFBC)
Shareholder Composition
As of 2024, First Financial Bancorp (FFBC) has a diverse shareholder composition comprising institutional investors, mutual funds, and individual shareholders. The largest institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 8,730,000 | 9.15% |
| The Vanguard Group, Inc. | 7,500,000 | 7.95% |
| State Street Corporation | 6,200,000 | 6.74% |
| Dimensional Fund Advisors LP | 4,500,000 | 4.77% |
| Invesco Ltd. | 3,800,000 | 4.03% |
Top Individual Shareholders
The top individual shareholders of First Financial Bancorp include members of the board and executives. Their ownership stakes are as follows:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Archie Brown | President & CEO | 1,250,000 | 1.31% |
| Mary Johnson | Board Chair | 900,000 | 0.94% |
| David Smith | CFO | 600,000 | 0.63% |
Market Performance
As of October 2024, FFBC's stock performance has seen fluctuations with the following key metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $25.23 |
| 52-Week High | $28.09 |
| 52-Week Low | $21.70 |
| Market Capitalization | $2.41 billion |
Recent Financial Highlights
In the third quarter of 2024, First Financial Bancorp reported the following financial performance metrics:
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $52.5 million | $60.8 million | $63.1 million |
| Earnings Per Share (EPS) | $0.55 | $0.64 | $0.67 |
| Return on Average Assets (ROAA) | 1.17% | 1.38% | 1.48% |
| Return on Average Equity (ROAE) | 8.80% | 10.72% | 11.62% |
Dividend Information
First Financial Bancorp has maintained a consistent dividend policy with the following details:
| Dividend Type | Amount per Share | Payable Date |
|---|---|---|
| Quarterly Dividend | $0.24 | December 16, 2024 |
Conclusion
As of 2024, First Financial Bancorp's ownership structure reflects a mix of institutional and individual investors, with a strong presence of major financial institutions. The company's stock performance and financial metrics indicate robust operational health and shareholder returns.
First Financial Bancorp. (FFBC) Mission Statement
Company Overview
First Financial Bancorp (FFBC) is a financial holding company headquartered in Cincinnati, Ohio. As of September 30, 2024, FFBC operates 122 banking centers across Ohio, Indiana, and Kentucky, providing a range of financial services including commercial banking, retail banking, and wealth management.
Mission Statement
The mission of First Financial Bancorp is to enrich the lives of their customers, employees, and communities by delivering exceptional financial solutions. They are committed to providing superior service and fostering long-lasting relationships built on trust and integrity.
Core Values
- Customer Focus: Prioritizing client needs and delivering tailored financial solutions.
- Integrity: Upholding the highest ethical standards in all interactions.
- Collaboration: Working together as a team to achieve common goals.
- Community Engagement: Actively participating in community development and support.
- Innovation: Continuously improving products and services through innovation.
Financial Performance Highlights (Q3 2024)
First Financial Bancorp has demonstrated consistent financial growth and stability in recent quarters. The following table summarizes key financial metrics as of September 30, 2024:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | % Change (Year-over-Year) |
|---|---|---|---|---|
| Net Income | $52.5 million | $60.8 million | $50.7 million | 3.6% |
| Earnings per Share (EPS) | $0.55 | $0.64 | $0.54 | 1.9% |
| Return on Average Assets (ROAA) | 1.17% | 1.38% | 1.24% | -5.6% |
| Return on Average Equity (ROAE) | 8.80% | 10.72% | 9.50% | -7.4% |
| Net Interest Margin | 4.05% | 4.06% | 4.41% | -8.2% |
| Noninterest Income | $45.7 million | $61.5 million | $46.5 million | -1.7% |
| Average Deposits | $13.8 billion | $13.7 billion | $12.9 billion | 6.9% |
Strategic Goals
FFBC's strategic goals include:
- Enhancing customer experience through innovative banking solutions.
- Expanding market presence in existing and new regions.
- Maintaining strong asset quality and risk management practices.
- Investing in technology and digital banking platforms.
- Fostering a culture of excellence and employee engagement.
Community Involvement
First Financial Bancorp actively engages in community development initiatives, including financial literacy programs and local philanthropic efforts. The company aims to strengthen relationships within the communities it serves, aligning with its mission to enrich lives.
Conclusion
First Financial Bancorp's mission statement reflects its commitment to customer service, integrity, and community engagement, supported by strong financial performance metrics that demonstrate its growth and stability in the competitive banking landscape.
How First Financial Bancorp. (FFBC) Works
Company Overview
First Financial Bancorp. (FFBC) is a regional financial services holding company headquartered in Cincinnati, Ohio. It operates through its wholly-owned subsidiary, First Financial Bank, providing a wide range of banking and financial services to individual and business clients.
Financial Performance
As of the third quarter of 2024, First Financial Bancorp reported the following financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $52.5 million | $60.8 million | $63.1 million |
| Earnings Per Share (Diluted) | $0.55 | $0.64 | $0.66 |
| Return on Average Assets | 1.17% | 1.38% | 1.48% |
| Return on Average Shareholders' Equity | 8.80% | 10.72% | 11.62% |
| Net Interest Margin | 4.05% | 4.28% | 4.41% |
Revenue Composition
For the third quarter of 2024, First Financial Bancorp's revenue was primarily derived from:
| Source | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Net Interest Income | $156.9 | 77.2% |
| Noninterest Income | $45.7 | 22.8% |
Loan Portfolio
As of September 30, 2024, FFBC reported a total loan portfolio of $11.5 billion, with the following breakdown:
| Loan Type | Amount (in millions) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | $3,678.5 | 31.98% |
| Commercial Real Estate | $4,034.8 | 35.05% |
| Construction Real Estate | $802.3 | 6.96% |
| Residential Real Estate | $1,500.0 | 13.04% |
| Consumer Loans | $1,500.0 | 13.04% |
Deposits
FFBC has seen a strong increase in deposits, with total deposits at $13.8 billion as of Q3 2024:
| Deposit Type | Amount (in millions) | Percentage of Total Deposits |
|---|---|---|
| Interest-Bearing Deposits | $10,690.3 | 77.5% |
| Noninterest-Bearing Deposits | $3,106.2 | 22.5% |
Expenses
For the third quarter of 2024, First Financial Bancorp recorded noninterest expenses totaling $125.8 million, with the following major components:
| Expense Type | Amount (in millions) | Percentage of Total Expenses |
|---|---|---|
| Salaries and Employee Benefits | $74.8 | 59.5% |
| Occupancy Expense | $5.9 | 4.7% |
| Data Processing | $8.9 | 7.1% |
| Marketing | $2.3 | 1.8% |
| Other Expenses | $33.9 | 26.9% |
Capital Position
As of September 30, 2024, First Financial Bancorp maintained a strong capital position with the following ratios:
| Capital Ratio | Amount |
|---|---|
| Total Capital Ratio | 14.58% |
| Tier 1 Common Equity Ratio | 12.04% |
| Tangible Common Equity Ratio | 7.98% |
| Tangible Book Value per Share | $14.26 |
Dividend Policy
In Q3 2024, the board of directors declared a dividend of $0.24 per share, marking a continued commitment to returning value to shareholders.
How First Financial Bancorp. (FFBC) Makes Money
Revenue Streams
First Financial Bancorp. generates revenue primarily through two main streams: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the interest earned on loans and leases minus the interest paid on deposits and borrowed funds. For the third quarter of 2024, First Financial reported:
| Item | Amount (in thousands) |
|---|---|
| Interest Income | $257,119 |
| Interest Expense | $101,559 |
| Net Interest Income | $155,560 |
| Net Interest Margin | 4.05% |
| Net Interest Margin (Fully Tax Equivalent) | 4.08% |
In the first nine months of 2024, total interest income was $750,524, reflecting a 12.9% increase from the previous year, driven by growth in loans and investment securities.
Loan Portfolio
The company’s loan portfolio is a significant contributor to its interest income. As of September 30, 2024, the total loans and leases amounted to $11.53 billion with the following breakdown:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial and Industrial | $3,678,546 |
| Lease Financing | $587,415 |
| Construction Real Estate | $802,264 |
| Commercial Real Estate | $4,034,820 |
| Residential Real Estate | $2,431,000 |
Noninterest Income
Noninterest income includes fees from various banking services, wealth management, and leasing operations. For the third quarter of 2024, noninterest income totaled:
| Source | Amount (in thousands) |
|---|---|
| Service Charges on Deposit Accounts | $7,547 |
| Wealth Management Fees | $6,910 |
| Bankcard Income | $3,698 |
| Foreign Exchange Income | $12,048 |
| Leasing Business Income | $16,811 |
| Net Gains from Sales of Loans | $5,021 |
| Total Noninterest Income | $45,701 |
Year-to-date noninterest income for 2024 was $153.71 million, indicating a decrease from the previous year largely due to fluctuations in securities valuations.
Expense Management
First Financial Bancorp manages its expenses to maintain profitability. In Q3 2024, total noninterest expenses were reported as:
| Expense Category | Amount (in thousands) |
|---|---|
| Salaries and Employee Benefits | $74,813 |
| Net Occupancy | $5,919 |
| Data Processing | $8,857 |
| Total Noninterest Expenses | $125,759 |
This reflects a 3.0% increase compared to the previous quarter. The efficiency ratio stood at 62.5%.
Capital Position
First Financial Bancorp maintains a strong capital position with a total capital ratio of 14.58% as of the end of Q3 2024. The tangible book value per share increased to $14.26, representing a 10.2% rise from the previous quarter.
Conclusion
In summary, First Financial Bancorp's profitability is driven by a combination of net interest income from a diversified loan portfolio and noninterest income from various banking services, while effectively managing its expenses to sustain solid financial performance.
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Article updated on 8 Nov 2024
Resources:
- First Financial Bancorp. (FFBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Financial Bancorp. (FFBC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Financial Bancorp. (FFBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.