FIRST FINANCIAL BANCORP /OH/
For the period ended Mar 31, 2025. Filed May 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
FFBC$32.57+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000708955-24-000063
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0000708955-25-000038
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 182 previous paragraphs and 177 current paragraphs.
100 unchanged; 63 reworded; 13 added; 17 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Interest income of $240.4 million decreased $11.2 million, or 4.4%, in the first quarter of 2025 when compared to the fourth quarter of 2024. This was primarily due to the 16 bp decline in earning asset yields, which included a 22 bp decline in loan yields partially offset by a 7 bp increase in investment securities yields. Average earning assets were $15.8 billion for the first quarter of 2025 compared to $15.7 billion for the fourth quarter of 2024. The change in earning assets included a modest increase in both average loan and average securities balances during the first quarter.
Current report
Interest expense of $91.1 million decreased $6.0 million, or 6.2%, in the first quarter of 2025 when compared to the fourth quarter of 2024, due to lower interest rates and the Company's strategic focus on managing deposit costs. The Company's total cost of interest bearing deposits decreased 17 bps to 2.86% in the first quarter of 2025, and average deposit balances decreased $99.0 million, or 0.7%, to $14.2 billion. The decline in average deposits was primarily driven by a seasonal decline in public funds coupled with a decrease in brokered CDs. Average borrowed funds increased $146.3 million, or 17.1%, from the linked quarter.
Current report
Interest income of $240.4 million for the three months ended March 31, 2025 declined $0.3 million, or 0.1%, compared to $240.7 million for the same period of the prior year as lower interest rates offset the increase in earning asset balances. Average earning assets of $15.8 billion for the first three months of 2025 increased $994.6 million, or 6.7%, when compared to the same period of 2024, driven primarily by a $658.5 million, or 6.0%, increase in average loan balances and a $273.9 million, or 8.7%, increase in average investment securities. While first quarter loan yields declined by 50 bp compared to the same period in the prior year, the average yield on investments increased by 34 bp as a result of rebalancing a portion of the investment portfolio.
Current report
Linked quarter comparison: First quarter 2025 noninterest income was $51.1 million, decreasing $18.8 million, or 26.9%, compared to $69.9 million for the fourth quarter of 2024. The decrease from the linked quarter was primarily driven by losses on sales of investment securities, lower foreign exchange income and a decline in other noninterest income. Losses on sales of investment securities increased $10.1 million as a result of the Bank rebalancing a portion of its investment portfolio and selling $164.5 million of securities while realizing a $9.9 million loss on those sales. Foreign exchange income decreased $4.3 million, or 25.3%, due to lower client demand in the first quarter of 2025. Other noninterest income decreased $3.1 million, or 38.4%, due to lower loan syndication fees in the first quarter of 2025 and higher limited partnership investment income received during fourth quarter of 2024.
Current report
Year-to-date comparison: Noninterest income of $51.1 million for the first three months of 2025 increased $4.6 million, or 9.8%, from $46.5 million in the comparable period of 2024. The increase was primarily attributed to higher foreign exchange income, leasing business income and wealth management fees. These increases were partially offset by higher losses on sales of investment securities in first quarter of 2025. Foreign exchange income increased $2.1 million, or 20.2%, due to increased client demand in first quarter 2025, while leasing business income increased $4.1 million, or 28.2%, due to continued growth in operating lease balances. Wealth management fee income increased $1.5 million, or 21.9%, due to higher business succession income. Losses on investment securities increased $4.8 million compared to the the same quarter in the prior year due to the
Current report
Bank rebalancing a portion of its investment portfolio and selling $164.5 million of securities while recognizing a $9.9 million loss.
Current report
Linked quarter comparison: First quarter 2025 noninterest expense was $128.1 million, which was a decrease of $19.8 million, or 13.4%, from $147.9 million in the fourth quarter of 2024. This decrease was primarily driven by lower salaries and employee benefits, professional services and amortization of tax credit investments which were partially offset by an increase in other noninterest expense. Salaries and benefits expenses decreased $5.1 million, or 6.3%, from the linked quarter primarily due to lower incentive compensation during the period. Professional services decreased $3.9 million, or 58.7%, during the first quarter of 2025 due to fourth quarter costs related to the Company's optimization efforts. Amortization of tax credit investments expense decreased $14.2 million, or 99.2%, due to tax credit writedowns that occurred in the fourth quarter. Partially offsetting these decreases, other noninterest expenses increased $1.4 million, or 17.0%, from the linked quarter due to gains on the sale of previously closed banking centers recognized during the fourth quarter.
Current report
Year-to-date comparison: Noninterest expenses of $128.1 million for the first three months of 2025 increased $5.7 million, or 4.7%, compared to the same period in 2024 primarily due to higher leasing business expense and salaries and benefits. Leasing business expense increased $3.0 million, or 31.2%, as a result of the growth in the operating lease portfolio, while salaries and benefits expenses increased $1.2 million, or 1.6%, due to higher incentive compensation which is tied to fee income.
Current report
During the three months ended March 31, 2025, the Company realized $9.9 million of losses on sales of investment securities, which compares to $5.2 million million for the same period in the prior year. The losses incurred in 2025 were the result of a strategic repositioning of $164.5 million of the investment portfolio in order to increase future yields. The Company expects to earn back these losses in 2.3 years.
Current report
Excluding loans held for sale, loan balances decreased $37.6 million, or 0.3%, to $11.7 billion as of March 31, 2025 from $11.8 billion as of December 31, 2024. Commercial real estate loans decreased $104.9 million, or 2.6%, to $4.0 billion; finance leases decreased by $24.4 million, or 4.1%, to $573.6 million; and installment loans decreased $13.4 million, or 10.1%, to $119.7 million. Partially offsetting these declines, construction loans increased $45.3 million, or 5.8%, to $824.8 million; home equity increased $23.5 million, or 2.8%, to $872.5 million; residential real estate loans increased $17.4 million, or 1.2%, to $1.5 billion; C&I loans increased $16.5 million, or 0.4%, to $3.8 billion; and credit cards increased $2.3 million, or 3.7%, to $64.6 million.
Current report
Total deposits were $14.2 billion as of March 31, 2025, a decrease of $132.2 million, or 0.9%, from December 31, 2024. This decline was primarily driven by a seasonal decline in public funds and an $81.5 million decline in brokered CDs. Partially offsetting these declines, noninterest-bearing deposits increased $28.9 million, or 0.9%.
Current report
Average deposits for the first quarter of 2025 were $14.2 billion, which was a decrease of $99.0 million, or 0.7%, from $14.3 billion for the fourth quarter of 2024. Average time deposits declined $68.0 million, or 2.1%, from the linked quarter; this change was primarily driven by a $161.8 million decrease in average brokered CDs, partially offset by a $95.0 million increase in average retail CDs. Additionally, average noninterest-bearing deposits decreased $71.6 million, or 2.3%, while average savings deposits increased $31.2 million, or 0.6%, from the prior quarter. Excluding brokered deposits, total average deposits increased $62.8 million from the linked quarter.
Current report
First quarter 2025 average deposits increased $961.5 million, or 7.2%, when compared to the same period of 2024. This change was driven by a $518.2 million, or 11.8%, increase in average savings deposits; a $327.2 million, or 11.6%, increase in average time deposits; and a $194.8 million, or 6.7%, increase in average interest-bearing demand deposits. These increases were partially offset by a $78.7 million, or 2.5%, decrease in average noninterest-bearing demand deposits.
Removed paragraphs (17)
Previous report
In the first quarter of 2023, First Financial purchased the assets of Brady Ware Capital, LLC (Brady Ware). Located in Miamisburg, Ohio, Brady Ware was an advisory firm for mergers and acquisitions, focusing primarily on business succession planning. First Financial acquired all of the assets of Brady Ware for aggregate consideration of approximately $4.3 million, consisting of $3.4 million in cash and a $0.9 million earn-out payment. Pursuant to the purchase agreement, the earn-out payments are payable annually for each of the five years following the closing of the acquisition, contingent upon the results of Brady Ware's operations.
Previous report
The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. Goodwill resulting from the Brady Ware acquisition was $4.2 million and reflects the business’s growth potential and the expectation that the acquisition will provide additional revenue growth with the expansion of the Bank's advisory business. In May 2023, First Financial also acquired Brady Ware Corporate Finance, a broker-dealer and member of FINRA. First Financial recorded $0.1 million of goodwill in connection with the acquisition of Brady Ware Corporate Finance. The measurement period for recording adjustments to the fair value of assets and liabilities for Brady Ware Capital ended in January 2024, while the measurement period for Brady Ware Corporate Finance ended in May 2024.
Previous report
A discussion of First Financial's operating results for the three and nine month periods ended September 30, 2024 follows.
Previous report
Interest income of $257.1 million increased $4.4 million, or 1.7%, in the third quarter of 2024 when compared to the second quarter of 2024 primarily due to a $120.6 million increase in average earning assets. Average earning assets were $15.3 billion for the third quarter of 2024 compared to $15.2 billion for the second quarter of 2024. The increase in earning assets was largely driven by a $93.1 million, or 0.8%, increase in average loan balances during the third quarter.
Previous report
Interest expense of $101.6 million increased $2.2 million, or 2.2%, in the third quarter of 2024 when compared to the second quarter of 2024, largely due to higher interest rates coupled with increases in average interest-bearing deposits, partially offset by lower borrowings. The Company's total cost of interest bearing deposits increased 3 bp to 3.21% in the third quarter of 2024 as customers continued to migrate to higher cost accounts, and average deposit balances increased $166.2 million, or 1.2%, to $13.8 billion. The increase in average deposits was driven primarily by increases in money market accounts, retail CDs and a seasonal increase in public funds. Average borrowed funds decreased $117.5 million, or 10.0%, from the linked quarter.
Previous report
Interest income for the nine months ended September 30, 2024 grew $86.0 million, or 12.9%, to $750.5 million compared to $664.6 million for the same period of the prior year due to higher interest rates and earning asset balances. Average earning assets of $15.1 billion for the first nine months of 2024 increased $696.3 million, or 4.8%, when compared to the same period of 2023, driven primarily by an $843.3 million, or 8.0%, increase in average loan balances, which more than offset a $347.5 million, or 9.8%, decrease in average investment securities. Additionally, the yield on earning assets increased 48 bps in the first nine months of 2024 compared to the same period in the prior year due to higher interest rates.
Previous report
Linked quarter comparison: Third quarter 2024 noninterest income was $45.7 million, decreasing $15.8 million, or 25.7%, compared to $61.5 million for the second quarter 2024. The decrease from the linked quarter was primarily driven by losses on investment securities and lower foreign exchange income, partially offset by higher other noninterest income. Losses on investment securities increased $17.4 million largely as a result of a $9.7 million impairment loss on two skilled nursing investments and $8.0 million of losses from sales of securities as the Company repositioned a portion of the portfolio. Foreign exchange income decreased $4.7 million, or 28.2%, as product demand eased from near-record levels in the prior quarter. Other noninterest income increased $5.5 million, or 124.2%, largely due to a $4.4 gain related to a deferred tax adjustment.
Previous report
Year-to-date comparison: Noninterest income of $153.7 million for the first nine months of 2024 decreased $11.7 million, or 7.1%, from $165.4 million in the comparable period of 2023. The decline was primarily attributed to losses on investment securities, lower foreign exchange income and client derivative fees. These declines were partially offset by higher other noninterest income, gains on the sale of loans and service charge income. Losses on investment securities increased $22.3 million compared to the prior year due to a $9.7 million impairment loss and $13.2 million of losses resulting from the repositioning of a portion of the investment portfolio during 2024. Foreign exchange income decreased $6.1 million, or 13.4%, and client derivative fees decreased $1.3 million, or 28.6%, due to lower demand in 2024 compared to the prior period. Partially offsetting these declines, leasing business income increased $9.8 million, or 25.4%, due to continued balance growth at Summit. Other noninterest income increased $3.1 million, or 19.2%, due primarily to a $4.4 million gain related to a deferred tax adjustment. Gains on the sales of loans increased $3.0 million, or 29.5%, as mortgage demand increased in the current year as a result of stabilized interest rates, and service charges on deposits increased $1.2 million, or 5.9%, as a result of growth in deposit balances.
Previous report
Linked quarter comparison: Third quarter 2024 noninterest expense was $125.8 million, an increase of $2.2 million, or 1.8%, from $123.6 million for the second quarter 2024. This increase was primarily driven by higher leasing business expense and other noninterest expense, partially offset by lower professional services, salaries and benefits and marketing expenses. Leasing business expense increased $1.8 million, or 17.5%, due to the continued growth of the operating lease portfolio. Other noninterest expenses increased $1.3 million, or 16.5%, from the linked quarter primarily due to a $0.5 million supplemental contribution to the First Financial Foundation, as well as higher collection costs and fraud losses in the current quarter. Professional services decreased $0.6 million, or 20.2%, due to higher efficiency related costs in the linked quarter. Salaries and benefits expenses decreased $0.4 million, or 0.5%, from the linked quarter primarily due to the impact from the Company's ongoing efficiency initiatives. Marketing expenses decreased $0.4 million, or 13.4%, due to decreased promotional advertising during the current period.
Previous report
Year-to-date comparison: Noninterest expenses of $371.7 million for the first nine months of 2024 increased $12.3 million, or 3.4%, compared to the same period in 2023 primarily due to higher leasing business expenses, other noninterest expenses, salaries and benefits expenses, furniture and equipment costs and professional services, partially offset by lower data processing expenses. Leasing business expense increased $8.2 million, or 35.0%, as a result of the growth in the operating lease portfolio, while salaries and benefits expenses increased $2.0 million, or 0.9%, due to annual salary increases and the Agile acquisition. Other noninterest expenses increased $2.4 million, or 10.2%, primarily due to a $0.5 million increase in fraud losses compared to the prior year as well as a $0.5 million supplemental contribution ot the First Financial Foundation. Furniture and equipment costs increased $0.9 million, or 9.3%, due to the technology upgrades in the current year, while professional services increased $0.7 million, or 10.0%, from the prior year primarily due to an increase in consulting costs related to the Company's ongoing efficiency efforts. Partially offsetting these increases, data processing expenses decreased $1.3 million, or 4.8%, in the current year, largely due to expenses from the Company's 2023 online banking system conversion.
Previous report
During the three months ended September 30, 2024, the Company recognized $17.5 million of losses on investment securities. This included $9.7 million of impairment losses on two commercial mortgage backed securities where the underlying collateral consisted of skilled nursing facilities with credit deterioration, which the Company anticipates selling in the near term, as well as $8.0 million of losses from the repositioning of a small portion of the investment portfolio. The impairment losses were related to certain AFS securities in unrealized loss positions with credit deterioration where the Company determined that it no longer intends to hold the securities until the recovery of the amortized cost bases and, as such, these securities were written down to fair value, inclusive of credit and other fair value adjustments.
Previous report
For the nine months ended September 30, 2024, the Company realized $22.7 million of losses on investment securities, which compares to $0.4 million million for the same period in the prior year. The losses in 2024 included the previously mentioned $9.7 million of impairment losses, as well as a total of $13.2 million of losses on the sale of investment securities resulting from the strategic repositioning of a portion of the investment portfolio. The repositioning included the sale of $372.2 million of securities and is expected to increase future yields. The losses incurred from the repositioning were partially offset by $2.2 million of gains recognized from the sale of the Company's remaining Class B Visa shares in the first quarter of 2024.
Previous report
Excluding loans held for sale, loan balances increased $619.9 million, or 5.7%, to $11.6 billion as of September 30, 2024 from $10.9 billion as of December 31, 2023. Construction loans increased $237.4 million, or 42.0%, to $802.3 million; C&I loans increased $177.3 million, or 5.1%, to $3.7 billion; finance leases increased by $112.6 million, or 23.7%, to $587.4 million;
Previous report
residential real estate loans increased by $88.5 million, or 6.6%, to $1.4 billion; and home equity increased $66.8 million, or 8.8%, to $825.4 million. Partially offsetting these areas of loan growth, installment loans decreased $17.8 million, or 11.2%, to $141.3 million; and commercial real estate loans decreased $46.1 million, or 1.1%, to $4.0 billion.
Previous report
Total deposits were $13.9 billion as of September 30, 2024, an increase of $587.0 million, or 4.4%, from December 31, 2023. With the elevation of interest rates, the Company's deposit mix continued to shift to higher cost interest-bearing deposit balances, specifically money market accounts, retail CDs and brokered CDs, with lower transaction deposit balances. During the nine month period ended September 30, 2024, time deposits increased $526.5 million, or 19.4%, and savings deposits increased $379.0 million, or 8.8%, while noninterest-bearing deposits decreased $210.3 million, or 6.3%, and interest-bearing demand deposits decreased $108.2 million, or 3.6%.
Previous report
Average deposits for the third quarter of 2024 were $13.8 billion, an increase of $166.2 million, or 1.2%, from $13.6 billion for the second quarter of 2024. Consistent with the previously noted shift in customer preferences, average savings deposits increased $77.3 million, or 1.7%, and average time deposits increased $100.3 million, or 3.4%, from the linked quarter. Additionally, average interest-bearing demand deposits increased $26.7 million, or 0.9%, from the prior quarter. These increases were partially offset by a $38.0 million, or 1.2%, decrease in average noninterest-bearing deposits and a $40.5 million, or 2.0%, seasonal decrease in public funds.
Previous report
Through the first nine months of 2024, average deposits increased $798.5 million, or 6.3%, when compared to the same period of 2023.
Reworded paragraphs (63)
Previous wording
First Financial Bancorp. is an $18.1 billion financial holding company headquartered in Cincinnati, Ohio. The Company primarily operates through First Financial Bank, an Ohio-chartered commercial bank with 128 full service banking centers at September 30, 2024. First Financial provides banking and financial services products to business and retail clients through its six lines of business: Commercial, Retail Banking, Mortgage Banking, Wealth Management, Investment Commercial Real Estate and Commercial Finance. The Commercial Finance business lends to targeted industry verticals on a nationwide basis. Operating under the brand of Yellow Cardinal Advisory Group, Wealth Management had $3.8 billion in assets under management as of September 30, 2024 and provides the following services: financial planning, investment management, trust administration, estate settlement, business succession planning services, brokerage services and retirement planning.
Current wording
First Financial Bancorp. is an $18.5 billion financial holding company headquartered in Cincinnati, Ohio. The Company primarily operates through First Financial Bank, an Ohio-chartered commercial bank with 127 full service banking centers at March 31, 2025. First Financial provides banking and financial services products to business and retail clients through its six lines of business: Commercial, Retail Banking, Mortgage Banking, Wealth Management, Investment Commercial Real Estate and Commercial Finance. The Commercial Finance business lends to targeted industry verticals and has a national geographic footprint. Wealth Management, operating under the brand of Yellow Cardinal Advisory Group, had $3.7 billion in assets under management as of March 31, 2025, and provides the following services: financial planning, investment management, trust administration, estate settlement, business succession planning services, brokerage services and retirement planning.
Previous wording
The major components of First Financial’s operating results for the current and prior year are discussed in greater detail in the sections that follow.
Current wording
The major components of First Financial’s operating results for the three month period ended March 31, 2025 are discussed in greater detail in the sections that follow.
Previous wording
First Financial also has certain specialty lending platforms that extend beyond the geographic banking center footprint. These specialty finance businesses provide insurance premium financing, equipment lease financing and financing to franchise owners and clients within the financial services industry.
Current wording
First Financial also has certain specialty lending platforms that extend beyond the geographic banking center footprint. These specialty finance businesses provide insurance premium financing, equipment lease financing, franchise financing and funding to clients within the financial services industry.
Previous wording
First Financial’s market selection process includes multiple factors, but markets are primarily chosen for their potential for long-term profitability and growth. First Financial intends to concentrate plans for future growth and capital investment within its current markets, and will continue to evaluate additional growth opportunities in metropolitan markets located within, or in close proximity to, the Company's current geographic footprint. Additionally, First Financial may assess strategic acquisitions that provide product line extensions or additional industry verticals that complement its existing business and diversify its product suite and revenue streams.
Current wording
First Financial’s market selection process includes multiple factors, but markets are primarily chosen for their potential for long-term profitability and growth. First Financial intends to concentrate plans for future growth and capital investment within its current markets, and will continue to evaluate additional growth opportunities in metropolitan markets located within, or in close proximity to, the Company's current geographic footprint. Additionally, First Financial may assess strategic acquisitions that provide product line extensions or industry verticals that complement its existing business and diversify its product suite and revenue streams.
Previous wording
The Agile transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. The fair value of assets acquired and liabilities assumed were $97.8 million and $2.7 million, respectively. Acquisition accounting adjustments are considered preliminary at September 30, 2024. These fair value measurements are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available, and the measurement period for Agile ends in March 2025. Goodwill resulting from the Agile acquisition was $1.8 million while other intangible assets created in the transaction include a customer list, non-compete agreements, trade name and a servicing asset.
Current wording
The Agile transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. The fair value of assets acquired and liabilities assumed were $97.8 million and $2.7 million, respectively. Fair value measurements for the Agile transaction were considered final as of February 2025. Goodwill resulting from the Agile acquisition was $1.8 million while other intangible assets created in the transaction include a customer list, non-compete agreements, trade name and a servicing asset.
Previous wording
The Company utilizes certain non-GAAP financial measures, which it believes provide useful insight to the reader of the Consolidated Financial Statements. These non-GAAP measures should be supplemental to primary GAAP measures and should not be read in isolation or relied upon as a substitute for the primary GAAP measures.
Current wording
The Company utilizes certain non-GAAP financial measures, which First Financial believes provides useful insight to the readers of the Consolidated Financial Statements. These non-GAAP measures should be supplemental to primary GAAP measures and should not be read in isolation or relied upon as a substitute for the primary GAAP measures.
Previous wording
In addition to capital ratios defined by the U.S. banking agencies, First Financial considers various measures when evaluating capital utilization and adequacy, including the return on average tangible shareholder's equity and the tangible common equity ratio. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes and may be useful for evaluating the performance of a business as the ratios calculate the capital and return available to common shareholders without the impact of intangible assets and their related amortization. As GAAP does not include capital ratio measures, the Company believes there are no comparable GAAP financial measures to these ratios.
Current wording
In addition to capital ratios defined by the U.S. banking agencies, First Financial considers various measures when evaluating capital utilization and adequacy, including the return on average tangible shareholder's equity and the tangible common equity ratio. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes and may be useful for evaluating the performance of a business as the ratios calculate the capital and return available to common shareholders without the impact of intangible assets and their related amortization. As GAAP does not include capital ratio measures, the Company believes there are no comparable GAAP financial measures to these ratios. These ratios are not formally defined by GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures. First Financial encourages readers to consider its Consolidated Financial Statements in their entirety and not to rely upon any single financial measure.
Previous wording
Linked quarter comparison: Third quarter 2024 net income was $52.5 million and earnings per diluted common share were $0.55. This compares with second quarter 2024 net income of $60.8 million and earnings per diluted common share of $0.64. Return on average assets was 1.17% for the third quarter of 2024 compared to 1.38% for the second quarter of 2024. Return on average shareholders’ equity was 8.80% for the third quarter of 2024 compared to 10.72% for the second quarter of 2024.
Current wording
Linked quarter comparison: First quarter 2025 net income was $51.3 million and earnings per diluted common share were $0.54. This compares with fourth quarter 2024 net income of $64.9 million and earnings per diluted common share of $0.68. Return on average assets was 1.13% for the first quarter of 2025 compared to 1.41% for the fourth quarter of 2024. Return on average shareholders’ equity was 8.46% for the first quarter of 2025 compared to 10.57% for the fourth quarter of 2024.
Previous wording
Year-to-date comparison: For the nine months ended September 30, 2024, net income was $163.9 million and earnings per diluted common share were $1.72. This compares with net income of $199.1 million and earnings per diluted common share of $2.09 for the first nine months of 2023. Return on average assets for the nine months ended September 30, 2024 was 1.24% compared to 1.57% for the same period in 2023, and return on average shareholders' equity was 9.50% and 12.53% for the first nine months of 2024 and 2023, respectively.
Current wording
Year-to-date comparison: For the three months ended March 31, 2025, net income was $51.3 million and earnings per diluted common share were $0.54. This compares with net income of $50.7 million and earnings per diluted common share of $0.53 for the first three months of 2024. Return on average assets for the three months ended March 31, 2025 was 1.13% compared to 1.18% for the same period in 2024, and return on average shareholders' equity was 8.46% and 9.00% for the first three months of 2025 and 2024, respectively.
Previous wording
Linked quarter comparison: Net interest income for the third quarter of 2024 was $155.6 million, an increase of $2.2 million, or 1.5%, from the second quarter of 2024. Net interest margin on a fully tax equivalent basis was 4.08% in third quarter of 2024 compared to 4.10% for the second quarter of 2024. Net interest margin during the third quarter declined 2 basis points from the linked quarter as flat asset yields combined with a favorable shift in funding mix to mostly offset a modest increase in the cost of deposits.
Current wording
Linked quarter comparison: Net interest income for the first quarter of 2025 was $149.3 million, which is a decrease of $5.1 million, or 3.3%, from the fourth quarter of 2024. Net interest margin on a fully tax equivalent basis was 3.88% in first quarter of 2025 compared to 3.94% for the fourth quarter of 2024. Net interest margin during the first quarter declined 6 basis points from the linked quarter as asset yields declined 18 bps and deposit costs decreased 12 bps.
Previous wording
The notional value of the Company's cash flow hedges was $1.0 billion as of September 30, 2024, with the $3.1 million change in the fair value recorded in AOCI in the Consolidated Balance Sheet. Comparatively, the notional value of cash flow hedges as of December 31, 2023 was $1.0 billion with the $3.8 million change in fair value recorded in AOCI. As of September 30, 2024 and December 31, 2023, the maximum length of time over which the Company was hedging its exposure to the variability in future cash flows was 51 months and 60 months, respectively.
Current wording
The notional value of the Company's cash flow hedges was $1.0 billion as of both March 31, 2025 and December 31, 2024, with the $1.6 million and $4.9 million changes in the fair value recorded in AOCI in the Consolidated Balance Sheet, respectively. As of March 31, 2025 and December 31, 2024, the maximum length of time over which the Company was hedging its exposure to the variability in future cash flows was 45 months and 48 months, respectively.
Previous wording
Year-to-date comparison: Net interest income for the first nine months of 2024 decreased $16.4 million, or 3.5%, compared to the same period of 2023. Net interest margin on a fully tax equivalent basis was 4.09% for the nine months ended September 30, 2024, which is a decrease of 36 bps when compared to the same period in 2023. This was driven by a 119 bp increase in the cost of average interest bearing deposits and a 33 bp increase in the cost of borrowed funds, which outpaced a 48 bp increase in earning asset yields.
Current wording
Year-to-date comparison: Net interest income of $149.3 million for the first three months of 2025 increased $0.6 million, or 0.4%, compared to the same period of 2024. Net interest margin on a fully tax equivalent basis was 3.88% for the three months ended March 31, 2025, which is a decrease of 22 bps when compared to the same period in 2024. Earning asset yields declined 35 bps, which outpaced the 24 bp decline in the cost of interest bearing liabilities.
Previous wording
Interest expense for the nine months ended September 30, 2024 was $292.9 million compared to $190.6 million for the same period in the prior year. The increase was driven by a$1.4 billion, or 15.0%, increase in average interest bearing deposits coupled with a 119 bp increase in rates on those deposits. The increase in deposit rates was driven by both higher interest rates as well as continued customer migration to higher cost products. Additionally, the cost of borrowed funds increased 33 bps from the same period in the prior year, which more than offset a $332.5 million, or 22.9%, decrease in average borrowings.
Current wording
Interest expense for the three months ended March 31, 2025 was $91.1 million compared to $91.9 million for the same period in the prior year. This slight decrease was primarily driven by 16 bp decline in the cost of interest-bearing deposits, which was partially offset by a $1.0 billion, or 10.3%, increase in average interest bearing deposits. Additionally, the cost of borrowed funds declined 53 bps from the same period in the prior year while average borrowings decreased $137.7 million, or 12.1%.
Previous wording
Linked quarter comparison: In the third quarter of 2024, First Financial recorded income tax expense of $12.4 million on pre-tax income of $64.9 million, resulting in an effective tax rate of 19.2%. This compared to income tax expense of $14.0 million on pre-tax income of $74.8 million and an effective tax rate of 18.7% for the second quarter 2024. The higher effective tax rate in the third quarter is primarily driven by tax credit adjustments in the current period.
Current wording
Linked quarter comparison: In the first quarter of 2025, First Financial recorded income tax expense of $12.3 million on pre-tax income of $63.6 million, resulting in an effective tax rate of 19.4%. This compared to income tax expense of $2.0 million on pre-tax income of $66.9 million and an effective tax rate of 3.0% for the fourth quarter 2024. The higher effective tax rate in the first quarter was primarily driven by tax credit investments recognized in the fourth quarter of 2024.
Previous wording
Year-to-date comparison: For the first nine months of 2024, income tax expense was $37.5 million on pre-tax income of $201.4 million, resulting in an effective tax rate of 18.6%. This compared to income tax expense of $48.1 million on pre-tax income of $247.2 million and an effective tax rate of 19.4% for the comparable period in 2023. The the lower effective tax rate in 2024 compared to 2023 is primarily driven by tax credits realized in the current year as well as lower taxable income.
Current wording
Year-to-date comparison: For the first three months of 2025, income tax expense was $12.3 million on pre-tax income of $63.6 million, resulting in an effective tax rate of 19.4%. This compared to income tax expense of $11.0 million on pre-tax income of $61.7 million and an effective tax rate of 17.9% for the comparable period in 2024. The higher effective tax rate in 2025 compared to 2024 is primarily driven by higher taxable income, fewer tax credit investments recognized and lower federally tax-exempt income.
Previous wording
First Financial's investment portfolio totaled $3.4 billion at September 30, 2024 and $3.2 billion at December 31, 2023, or 18.5% and 18.4% of total assets, respectively. AFS securities totaled $3.2 billion at September 30, 2024 and $3.0 billion at December 31, 2023, while HTM securities totaled $78.0 million at September 30, 2024 and $80.3 million at December 31, 2023. The effective duration of the investment portfolio was 4.3 years at September 30, 2024 and 4.6 years at December 31, 2023.
Current wording
First Financial's investment portfolio totaled $3.5 billion at March 31, 2025 and $3.4 billion at December 31, 2024, or 18.7% and 18.2% of total assets, respectively. AFS securities totaled $3.3 billion at March 31, 2025 and $3.2 billion at December 31, 2024, while HTM securities totaled $76.5 million at March 31, 2025 and $77.0 million at December 31, 2024. The effective duration of the investment portfolio was 4.4 years at both March 31, 2025 and December 31, 2024.
Previous wording
The Company's Consolidated Financial Statements reflected a $203.6 million and $282.0 million unrealized after-tax loss on debt securities as of September 30, 2024 and December 31, 2023, respectively. These unrealized losses were included as a component of equity in accumulated other comprehensive income on the Consolidated Balance Sheets and were primarily driven by multiple interest rate increases from November 2022 through July 2023. The unrealized losses of $203.6 million as of September 30, 2024 declined from $291.1 million as of June 30, 2024, largely due to the decrease in interest rates in the final month of the third quarter.
Current wording
The Company's Consolidated Financial Statements reflected a $222.6 million and $256.5 million unrealized after-tax loss on debt securities as of March 31, 2025 and December 31, 2024, respectively. These unrealized losses were included as a component of equity in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets and were primarily driven by multiple interest rate increases from November 2022 through July 2023. The decline in the unrealized losses during the current quarter was attributed to the recent easing of interest rates coupled with the partial repositioning of the portfolio.
Previous wording
The Company had net unrealized losses of $6.9 million and $8.6 million on its HTM securities at September 30, 2024 and December 31, 2023, respectively. Similar to the unrealized losses on AFS securities, this unrealized loss was driven by interest rate increases. The unrealized losses on HTM securities have no impact on the Consolidated Financial Statements of the Company.
Current wording
The Company had net unrealized losses of $7.1 million and $8.0 million on its HTM securities at March 31, 2025 and December 31, 2024, respectively. Similar to the unrealized losses on AFS securities, this decline in unrealized losses was driven by lower interest rates. The unrealized losses on HTM securities have no impact on the Consolidated Financial Statements of the Company.
Previous wording
The Company had a $0.2 million unrealized gain on equity securities recorded in noninterest income for the three months ended September 30, 2024 compared to a $0.1 million unrealized loss for the three months ended June 30, 2024. For the first nine months of 2024, the Company had $0.3 million of unrealized gains on equity securities versus an insignificant unrealized gain for the same period of 2023.
Current wording
The Company had an insignificant unrealized loss on equity securities recorded in noninterest income for the three months ended March 31, 2025 and $0.1 million of unrealized gains on equity securities at December 31, 2024. For the first three months of 2024, the Company had $0.1 million of unrealized gains on equity securities.
Previous wording
Third quarter 2024 average loans of $11.5 billion, excluding loans held for sale, increased $90.7 million, or 0.8%, from the second quarter 2024. The growth over the linked quarter included an increase of $80.0 million, or 11.7% in construction real estate; an increase of $40.9 million, or 8.0%, in lease financing; an increase of $38.8 million, or 2.9%, in residential real estate; an increase of $20.9 million, or 2.6%, in home equity; and an increase of $7.7 million, or 0.2%, in C&I. These increases were partially offset by a decrease of $86.8 million, or 2.1%, in CRE; a decrease of $8.7 million, or 5.7%, in installment; and a decrease of $2.0 million, or 3.0%, in Credit card.
Current wording
First quarter 2025 average loans of $11.7 billion, excluding loans held for sale, increased $43.9 million, or 0.4%, from the fourth quarter 2024. The growth over the linked quarter included an increase of $59.7 million, or 1.6%, in C&I; an increase of $32.9 million, or 2.3%, in residential real estate; and an increase of $20.3 million, or 2.4%, in home equity. These increases were partially offset by a decrease of $29.8 million, or 3.6% in construction real estate; a decrease of $27.1 million, or 0.7%, in CRE; and a decrease of $9.7 million, or 7.1%, in installment loans.
Previous wording
Through the first nine months of 2024, average loans of $11.3 billion, excluding loans held for sale, increased $840.1 million, or 8.0%, from the comparable period of 2023. The increase from prior year reflected broad-based growth across most loan categories, including an increase of $204.7 million, or 5.9%, in C&I loans; an increase of $197.5 million, or 62.4%, in lease financing; an increase of $179.8 million, or 15.2% in residential real estate; an increase of $150.0 million, or 28.1%, in real estate construction; an increase of $71.5 million, or 1.8%, in CRE; an increase of $59.2 million, or 8.1%, in home equity; and an increase of $7.2 million or 12.2%, in Credit card. Partially offsetting these increases was a decrease of $29.8 million, or 16.5%, in installment loans.
Current wording
Through the first three months of 2025, average loans of $11.7 billion, excluding loans held for sale, increased $660.4 million, or 6.0%, from the comparable period of 2024. The increase from prior year reflected broad-based growth across many loan categories, which included an increase of $243.7 million, or 6.9%, in C&I loans; an increase of $193.1 million, or 32.0%, in real estate construction; an increase of $139.0 million, or 10.4% in residential real estate; an increase of $104.6 million, or 21.8%, in lease financing; and an increase of $92.7 million, or 12.1%, in home equity. Partially offsetting these increases was a decrease of $83.0 million, or 2.0%, in CRE; and a decrease of $30.5 million, or 19.3%, in installment loans.
Previous wording
In an effort to mitigate credit risk, First Financial routinely reviews its loan portfolio for various concentrations. These reviews consider the Bank's collateral position as well as exposure to a given industry sector. First Financial believes that the loan portfolio is sufficiently diversified to provide protection from deterioration in any particular industry or devaluation of a specific collateral type. The following tables, C&I and Owner Occupied Loans by Sector and Investor CRE Loans by property type, provide additional detail behind the Company's C&I and CRE loan portfolios as of September 30, 2024.
Current wording
In an effort to mitigate credit risk, First Financial routinely reviews its loan portfolio for various concentrations. These reviews consider the Bank's collateral position as well as exposure to a given industry sector. First Financial believes its loan portfolio is sufficiently diversified to provide protection from deterioration in any particular industry or devaluation of a specific collateral type. The following tables, C&I and Owner Occupied Loans by Sector and Investor CRE Loans by property type, provide additional detail behind the Company's C&I and CRE loan portfolios as of March 31, 2025.
Previous wording
Additionally, given the potential for stress related to commercial office space, First Financial performed a targeted review of its exposure to this sector. As of September 30, 2024, First Financial had $413.2 million of loans collateralized by non-owner occupied office space, which represents 3.6% of the total loan portfolio. The overall LTV of the portfolio at origination was strong, and 66.8% of the portfolio is located in suburban locations. Additionally, the majority of the portfolio is secured by Class A and Class B assets with recourse from the sponsor. As of September 30, 2024, 77.8% of the office portfolio was pass rated, and there were two relationships totaling $17.3 million on nonaccrual status.
Current wording
Additionally, given the potential for stress related to commercial office space, First Financial performed a targeted review of its exposure to this sector. As of March 31, 2025, First Financial had $376.7 million of loans collateralized by non-owner occupied office space, which represents 3.2% of the total loan portfolio. The overall LTV of the portfolio at origination was strong, and 68.6% of the portfolio is located in suburban locations. Additionally, the majority of the portfolio is secured by Class A and Class B assets with recourse from the sponsor. As of March 31, 2025, 95.5% of the office portfolio was pass rated; and there were two relationships totaling $16.8 million on nonaccrual status.
Previous wording
Off-balance sheet arrangements include commitments to extend credit and financial guarantees. Loan commitments are agreements to extend credit to a client absent any violation of any condition established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. First Financial had outstanding commitments to extend credit, including overdraft lending lines, totaling $4.1 billion at September 30, 2024 and$4.5 billion at December 31, 2023. As of September 30, 2024, commitments with a fixed interest rate totaled $100.1 million while commitments with variable interest rates totaled $4.0 billion. At December 31, 2023, commitments with a fixed interest rate totaled $108.2 million while commitments with variable interest rates totaled $4.4 billion. The fixed rate commitments have interest rates ranging from 0% to 21% and maturities ranging from less than one year to 31.0 years at September 30, 2024 and maturities ranging from less than one year to 31.6 years for December 31, 2023.
Current wording
Off-balance sheet arrangements include commitments to extend credit and financial guarantees. Loan commitments are agreements to extend credit to a client absent any violation of any condition established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. First Financial had outstanding commitments to extend credit, including overdraft lending lines, totaling $3.8 billion at both March 31, 2025 and December 31, 2024. As of March 31, 2025, commitments with a fixed interest rate totaled $74.9 million while commitments with variable interest rates totaled $3.7 billion. At December 31, 2024, commitments with a fixed interest rate totaled $69.3 million while commitments with variable interest rates totaled $3.7 billion. The fixed rate commitments have interest rates ranging from 0% to 21% at both March 31, 2025 and December 31, 2024. The fixed rate commitments have maturities ranging from less than one year to 31.0 years at March 31, 2025 and maturities ranging from less than one year to 31.6 years at December 31, 2024.
Previous wording
Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party. First Financial’s letters of credit consist primarily of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services. First Financial has issued letters of credit aggregating $60.9 million and $34.9 million at September 30, 2024 and December 31, 2023, respectively. Management conducts regular reviews of these instruments on an individual client basis.
Current wording
Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party. First Financial’s letters of credit consist primarily of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services. First Financial issued letters of credit aggregating $26.0 million and $25.1 million at March 31, 2025 and December 31, 2024, respectively. Management conducts regular reviews of these instruments on an individual client basis.
Previous wording
First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $323.8 million and $341.7 million at September 30, 2024 and December 31, 2023, respectively. Under a risk participation agreement, the Company either assumes or sells a portion of the credit exposure associated with an interest rate swap with a counterparty. The Company's exposure is limited to instances where the loan customer defaults on its obligation to perform under the interest rate swap agreement.
Current wording
First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $286.6 million and $310.7 million at March 31, 2025 and December 31, 2024, respectively. Under a risk participation agreement, the Company either assumes or sells a portion of the credit exposure associated with an interest rate swap with a counterparty. The Company's exposure is limited to instances where the loan customer defaults on its obligation to perform under the interest rate swap agreement.
Previous wording
First Financial is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in accrued interest and other assets in the Consolidated Balance Sheets, with any unfunded commitments included in accrued interest and other liabilities in the Consolidated Balance Sheets. As of September 30, 2024, First Financial expects to recover its remaining investments through the use of the tax credits that are generated by the investments. First Financial had unfunded commitments related to tax credit investments of $83.5 million and $96.4 million at September 30, 2024 and December 31, 2023, respectively.
Current wording
First Financial is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in accrued interest and other assets in the Consolidated Balance Sheets, with any unfunded commitments included in accrued interest and other liabilities in the Consolidated Balance Sheets. As of March 31, 2025, First Financial expects to recover its remaining investments through the use of the tax credits that are generated by the investments. First Financial had unfunded commitments related to tax credit investments of $74.5 million and $79.8 million at March 31, 2025 and December 31, 2024, respectively.
Previous wording
Additionally, as part of the ordinary course of business, First Financial and its subsidiaries are parties to litigation, including claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, foreclosure interests that are incidental to our regular business activities and other matters. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of September 30, 2024. Reserves are established for these various matters of litigation, when appropriate, under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel. First Financial had no reserves related to litigation matters as of September 30, 2024 and December 31, 2023.
Current wording
Additionally, as part of the ordinary course of business, First Financial and its subsidiaries are parties to litigation, including claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, foreclosure interests that are incidental to our regular business activities and other matters. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of March 31, 2025. When appropriate based upon the advice of legal counsel, reserves are established for these various matters of litigation under FASB ASC Topic 450, Contingencies. First Financial had no reserves related to litigation matters as of March 31, 2025 and December 31, 2024.
Previous wording
Loans are classified as nonaccrual when, in the opinion of management, collection of principal and interest is doubtful or when payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to a borrower's continued failure to adhere to contractual payment terms, coupled with other pertinent factors. When a loan is placed into nonaccrual status, any unpaid accrued interest is reversed and the recognition of interest income is suspended.
Current wording
Loans are classified as nonaccrual when, in the opinion of management, collection of principal and interest is doubtful or when payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to a borrower's continued failure to adhere to contractual payment terms, coupled with other pertinent factors. When a loan is placed on nonaccrual status, any unpaid accrued interest is reversed and the recognition of interest income is suspended.
Previous wording
Nonaccrual loans were $65.4 million, or 0.57% of total loans, as of September 30, 2024, reflecting a $0.3 million, or 0.5%, decline from $65.8 million as of December 31, 2023. Nonperforming assets, which consist of nonaccrual loans and OREO, were $65.5 million, or 0.36% of total assets, at September 30, 2024 compared to $65.9 million, or 0.38% of total assets, at December 31, 2023.
Current wording
Nonaccrual loans were $59.6 million, or 0.51% of total loans, as of March 31, 2025, reflecting a $6.4 million, or 9.7%, decline from $66.0 million as of December 31, 2024. Nonperforming assets, which consist of nonaccrual loans and OREO, were $59.8 million, or 0.32% of total assets, at March 31, 2025 compared to $66.0 million, or 0.36% of total assets, at December 31, 2024.
Previous wording
Classified assets, which are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse, totaled $206.2 million as of September 30, 2024 compared to $141.0 million at December 31, 2023. Classified assets were 114 bps as a percentage of total assets at September 30, 2024, compared to 80 bps as of December 31, 2023. The $65.2 million increase in classified assets during the period was primarily due to the downgrade of seven large relationships with no concentration in any particular loan type.
Current wording
Classified assets, which are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse, totaled $213.4 million as of March 31, 2025 compared to $224.1 million at December 31, 2024. Classified assets were 1.16% of total assets at March 31, 2025, compared to 1.21% as of December 31, 2024. At both March 31, 2025 and December 31, 2024, the total classified assets included a $45.0 million receivable from a customer, which is believed to be fully collateralized, that was recorded following the mutually agreed upon termination of a foreign exchange trade.
Previous wording
Allowance for credit losses. The ACL is a reserve accumulated on the Consolidated Balance Sheets through the recognition of the provision for loan and lease losses. First Financial records provision expense in the Consolidated Statements of Income to maintain the ACL at a level considered sufficient to absorb expected credit losses for financial assets in the portfolio over their expected remaining lives with consideration given to current and forward-looking information.
Current wording
Allowance for credit losses. The ACL is a reserve accumulated on the Consolidated Balance Sheets through the recognition of the provision for loan and lease losses. First Financial records provision expense in the Consolidated Statements of Income to maintain the ACL at a level considered sufficient to absorb expected credit losses for financial assets over their expected remaining lives with consideration given to current and forward-looking information.
Previous wording
Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered therein. These adjustments are commonly known as the Qualitative Framework. The evaluation of these factors is the responsibility of the ACL committee, which is comprised of senior officers from the risk management, credit administration, finance and lending areas.
Current wording
Management estimates the ACL using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered therein. These adjustments are commonly known as the qualitative framework. The evaluation of these factors is the responsibility of the ACL Committee, which is comprised of senior officers from the risk management, credit administration, finance and lending areas.
Previous wording
The total ACL, which includes both funded and unfunded reserves, was $176.0 million at September 30, 2024 and $159.9 million as of December 31, 2023.
Current wording
The total ACL, which includes both funded and unfunded reserves, was $171.9 million at March 31, 2025 and $173.7 million as of December 31, 2024.
Previous wording
ACL - loans and leases. The ACL on loans and leases was $158.8 million as of September 30, 2024 and $141.4 million as of December 31, 2023. As a percentage of period-end loans, the ACL was 1.37% as of September 30, 2024 and 1.29% as of December 31, 2023. The increase in the ACL was primarily driven by loan growth and credit migration.
Current wording
ACL - loans and leases. The ACL on loans and leases was $155.5 million as of March 31, 2025 and $156.8 million as of December 31, 2024. As a percentage of period-end loans, the ACL was 1.33% as of both March 31, 2025 and December 31, 2024.
Previous wording
In the third quarter of 2024, the Company recorded net charge-offs of $7.3 million, or 25 bps of average loans and leases on an annualized basis, compared to net charge-offs of $4.2 million, or 15 bps, for the second quarter of 2024. The charge-offs in the third quarter included a $3.6 million loss on a single C&I customer. Through the first nine months of 2024, the Company recorded net charge-offs of $22.1 million, or 26 bps on an annualized basis, compared to net charge-offs of $22.0 million, or 28 bps on an annualized basis, for the same period of 2023.
Current wording
In the first quarter of 2025, the Company recorded net charge-offs of $10.5 million, or 36 bps of average loans and leases on an annualized basis, compared to net charge-offs of $11.7 million, or 40 bps, for the fourth quarter of 2024 and $10.6 million, or 38 bps, for the first quarter of 2024. The charge-offs in the current period included a $7.0 million loss on a single C&I relationship.
Previous wording
The ACL as a percentage of nonaccrual loans was 242.7% at September 30, 2024 and 215.1% at December 31, 2023. The increase in this ratio was driven primarily by the increase in the reserve during the period, along with a slight decrease in nonaccrual loan balances.
Current wording
The ACL as a percentage of nonaccrual loans was 261.1% at March 31, 2025 and 237.7% at December 31, 2024. The increase in this ratio was driven primarily by the decrease in nonaccrual loan balances during the current period.
Previous wording
Provision expense is a product of the Company's ACL model combined with net charge-off activity during the period. During the third quarter of 2024, the Company recorded $9.9 million of provision expense for loans and leases compared to $16.2 million during the second quarter of 2024. Through the first nine months of 2024, the Company recorded a provision expense of $39.5 million compared to $34.3 million for the same period of 2023.
Current wording
Provision expense is a product of the Company's ACL model coupled with net charge-off activity during the period. During the first quarter of 2025, the Company recorded $9.1 million of provision expense for loans and leases compared to $9.7 million during the fourth quarter of 2024 and $13.4 million for the first quarter of 2024. Current quarter provision expense was driven by net chargeoffs during the period, coupled with stable loan balances and credit quality.
Previous wording
ACL - unfunded commitments. The ACL on unfunded commitments was $17.1 million as of September 30, 2024 and $18.4 million as of December 31, 2023. First Financial recorded $0.7 million of provision expense for credit losses on unfunded commitments for the third quarter of 2024, compared to $0.3 million of provision expense in the second quarter 2024. Through the first nine months of 2024, the Company recorded a provision recapture of $1.3 million and provision recapture of $1.4 million for the same period of 2023.
Current wording
ACL - unfunded commitments. The ACL on unfunded commitments was $16.4 million as of March 31, 2025 and $16.9 million as of December 31, 2024. First Financial recorded $0.4 million of provision recapture for credit losses on unfunded commitments for the first quarter of 2025, compared to $0.3 million of provision recapture in the fourth quarter 2024 and $2.3 million of provision recapture for the first quarter of 2024.
Previous wording
Uninsured deposit balances were $5.3 billion, or 38.3% of total deposits, as of September 30, 2024. The Company reviews uninsured deposits for concentration risk, and typically evaluates this risk by excluding public funds and intercompany deposits to arrive at an adjusted uninsured deposit amount. As such, excluding public funds and intercompany accounts, adjusted uninsured deposits were $3.3 billion, or 23.9% of total deposits, at the end of the third quarter.
Current wording
Uninsured deposit balances were $5.8 billion, or 40.6% of total deposits, as of March 31, 2025. The Company reviews uninsured deposits for concentration risk, and typically evaluates this risk by excluding public funds and intercompany deposits to arrive at an adjusted uninsured deposit amount. As such, excluding public funds and intercompany accounts, adjusted uninsured deposits were $3.7 billion, or 26.0% of total deposits, at the end of the first quarter.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
These ratios are not formally defined by GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures.
Previous report — wording carried elsewhere
First Financial encourages readers to consider its Consolidated Financial Statements in their entirety and not to rely upon any single financial measure.