FIRST FINANCIAL BANCORP /OH/
For the period ended Sep 30, 2025. Filed Nov 4, 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.
Sep 30, 2025 · Filed Nov 4, 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 2025-06-30; filed 2025-08-07.
0000708955-25-000070
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0000708955-25-000109
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 178 previous paragraphs and 187 current paragraphs.
113 unchanged; 58 reworded; 15 added; 6 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 18 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 (15)
Current report
BankFinancial Corporation
Current report
In August 2025, First Financial entered into a merger agreement with BankFinancial Corporation to acquire all of its equity shares in an all-stock transaction. Under the terms of the agreement, each outstanding share of BankFinancial common stock will be converted into the right to receive 0.48 shares of First Financial common stock, valuing the transaction at approximately $151.0 million, based on First Financial's closing stock price on September 30, 2025. Headquartered in Burr Ridge, Illinois, BankFinancial is the sole owner of BankFinancial, National Association, which will merge into First Financial Bank. As of
Current report
September 30, 2025, BankFinancial operated 18 banking centers in the Chicago metropolitan area and had, on an unaudited basis, approximately $1.5 billion of total assets, $759.8 million of total loans and $1.2 billion of total deposits.
Current report
No First Financial shareholder approval is required, but the transaction is subject to approval by BankFinancial shareholders, for which a vote is expected to occur at a special meeting to be held on December 18, 2025. The Company expects the acquisition to close in the first quarter of 2026.
Current report
Westfield Bancorp
Current report
Subsequent to the end of the third quarter, First Financial Bancorp acquired Westfield Bancorp, Inc., an Ohio corporation, effective November 1, 2025. Upon completion of the transaction, Westfield Bank, FSB, a federal savings bank, and a wholly owned subsidiary of Westfield Bancorp, merged into First Financial Bank. As of September 30, 2025, Westfield Bancorp operated seven full-service banking offices and had, on an unaudited basis, approximately $2.1 billion of total assets, $1.7 billion of total loans and $1.8 billion of total deposits.
Current report
Pursuant to the Purchase Agreement, First Financial acquired all of the issued and outstanding equity securities of Westfield Bancorp in exchange for a cash payment of $260.0 million and 2,753,094 shares of First Financial common stock, equal to $64.4 million based on the Company's stock price on the date the transaction, for a total purchase price of $324.4 million
Current report
This acquisition supplements First Financial’s existing commercial banking and wealth management presence in Northeast Ohio by adding all of Westfield’s retail banking locations and its commercial, insurance agency and private banking services.
Current report
The acquisition of Westfield had no impact on the Company's Consolidated Balance Sheet or Statements of Income at and for the three and nine months ended September 30, 2025.
Current report
Agile Premium Finance
Current report
Interest expense of $89.8 million increased $2.1 million, or 2.4%, in the third quarter of 2025 when compared to the second quarter of 2025. The increase in interest expense was primarily driven by higher interest-bearing deposit balances. The Company's average deposit balances increased $157.2 million, or 1.1%, to $14.5 billion. The increase in average deposits was primarily driven by an increase in brokered CDs and money markets, which offset a seasonal decline in public funds. Average borrowed funds decreased $87.2 million, or 9.6%, from the linked quarter, driven by the maturity and redemption of $120.0 million of subordinated debt during the period, however this decline was somewhat offset by an increase in interest paid on the remaining borrowings, which was primarily driven by $150.0 million of subordinated debt which converted to a floating rate in May of 2025.
Current report
Linked quarter comparison: Third quarter 2025 noninterest income was $73.5 million, increasing $5.5 million, or 8.0%, compared to $68.1 million for the second quarter of 2025. The increase from the linked quarter was primarily driven by foreign exchange income and other noninterest income. Foreign exchange income increased $2.9 million, or 21.1%, as client demand increased during the period, while other noninterest income increased $2.8 million, or 50.1%, due to higher syndication fees and higher income earned on other investments.
Current report
Linked quarter comparison: Third quarter 2025 noninterest expense was $134.3 million, which was an increase of $5.6 million, or 4.4%, from $128.7 million in the second quarter of 2025. This increase was primarily driven by higher salaries and benefits expense, leasing business expense, and data processing expense, which were partially offset by lower professional services expenses. Salaries and employee benefits expenses increased $5.7 million, or 7.6%, due to higher incentive compensation, which is tied to fee income. Leasing business expenses increased $0.8 million, or 5.7%, as a result of growth in the operating lease portfolio while data processing expenses increased $0.6 million, or 6.3%, due to acquisition-related expenses in the current period. Professional services expenses decreased $1.2 million, or 34.8%, due to fewer expenses related to the Company's efficiency efforts and fewer acquisition-related expenses during the third quarter.
Current report
During the nine months ended September 30, 2025 and 2024, the Company realized $9.7 million and $22.7 million, respectively, of losses on investment securities. The losses included $6.5 million in 2025 and $13.2 million in 2024, as a result of strategically repositioning portions of the investment portfolio in an effort to increase future yields. The losses also included $3.4 million, and $9.7 million, in 2025 and 2024, respectively, of impairment losses on two commercial mortgage backed securities where the underlying collateral consisted of skilled nursing facilities with credit deterioration.
Current report
Borrowed funds were $817.0 million as of September 30, 2025 and $1.1 billion as of December 31, 2024. The decrease in borrowings was primarily attributed to the maturity and subsequent redemption of $120.0 million of subordinated debt during the third quarter of 2025, along with an increase in deposits.
Removed paragraphs (6)
Previous report
In June 2025, the Company entered into a stock purchase agreement with Ohio Farmers Insurance Company to acquire all of the equity shares of Westfield Bancorp, Inc, the sole owner of Westfield Bank, FSB. The transaction is valued at $325.0 million, which will be paid 80% in cash, or $260.0 million, and 20% in First Financial stock, or approximately 2.75 million shares, or $65.0 million. Headquartered in Westfield Center, Ohio, Westfield operated seven banking offices in northeast Ohio and had $2.1 billion of assets as of June 30, 2025.
Previous report
Interest expense of $87.6 million decreased $3.5 million, or 3.8%, in the second quarter of 2025 when compared to the first quarter of 2025, primarily due to lower interest rates. The Company's total cost of interest bearing deposits decreased 16 bps to 2.70% in the second quarter of 2025, and average deposit balances increased $114.1 million, or 0.8%, to $14.4 billion. The increase in average deposits was primarily driven by a seasonal increase in public funds. Average borrowed funds decreased $90.8 million, or 9.1%, from the linked quarter.
Previous report
Linked quarter comparison: Second quarter 2025 noninterest income was $68.1 million, increasing $17.0 million, or 33.2%, compared to $51.1 million for the first quarter of 2025. The increase from the linked quarter was primarily driven by gain on investment securities, gains from sale of loans, and higher foreign exchange and leasing business income. Gains on investment securities increased $10.2 million in the second quarter as a result of the Bank rebalancing a portion of its investment portfolio during the first quarter and selling $164.5 million of securities while realizing a $9.9 million loss on those sales. Gains from sales of loans increased $2.4 million, or 54.7%, due to an increase in mortgage volume compared to the prior period. Foreign exchange income increased $1.2 million, or 9.7%, as product demand increased during the period, while leasing business income increased $2.1 million, or 11.2%, as a result of higher income earned on sold leases.
Previous report
Linked quarter comparison: Second quarter 2025 noninterest expense was $128.7 million, which was an increase of $0.6 million, or 0.5%, from $128.1 million in the first quarter of 2025. This increase was primarily driven by higher professional services and marketing expenses, which were partially offset by lower other noninterest expenses. Professional services increased $0.8 million, or 29.6%, during the second quarter of 2025 due to expenses related to the Company's efficiency efforts and costs related to the pending Westfield acquisition. Marketing expenses increased $0.7 million, or 35.6%, due to increased media placement expenses. Partially offsetting these decreases, other noninterest expenses decreased $0.7 million, or 7.8%, from the linked quarter due to gains on the sale of previously closed banking centers and lower meals and entertainment expenses.
Previous report
During the six months ended June 30, 2025, the Company realized $9.7 million of losses on investment securities, which compares to $5.3 million for the same period in the prior year. The losses incurred in 2025 were the result of a strategic repositioning of a portion of the investment portfolio in order to increase future yields.
Previous report
•the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
Reworded paragraphs (58)
Previous wording
First Financial Bancorp. is an $18.6 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 June 30, 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 $3.8 billion in assets under management as of June 30, 2025, 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 $18.6 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 September 30, 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 $4.0 billion in assets under management as of September 30, 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 three and six month periods ended June 30, 2025 are discussed in greater detail in the sections that follow.
Current wording
The primary components of First Financial’s operating results for the three and nine month periods ended September 30, 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, franchise financing and funding to clients within the financial services industry.
Current wording
First Financial also has certain specialty lending platforms that extend beyond the geographic footprint of its banking centers. These specialty finance businesses provide insurance premium financing, equipment lease financing, franchise financing and funding to clients within the financial services industry.
Previous wording
The closing of the acquisition is subject to customary conditions, including, among others, receipt of required regulatory approvals; the absence of any governmental order that restrains, prevents or materially alters the transactions contemplated by the Purchase Agreement; the accuracy of the parties’ representations and warranties contained in the Purchase Agreement (subject to certain qualifications); and the parties’ material compliance with the covenants and agreements in the Purchase Agreement. No First Financial shareholder approval is required, and approval of Westfield Bancorp’s sole shareholder, Ohio Farmers, has been received. First Financial expects the acquisition to close in the fourth quarter of 2025.
Current wording
The closing of the BankFinancial acquisition is subject to customary conditions, including, among others, receipt of required regulatory approvals; the absence of any governmental order that restrains, prevents or materially alters the transactions contemplated by the merger agreement; the accuracy of the parties’ representations and warranties contained in the agreement (subject to certain qualifications); and the parties’ material compliance with the covenants and agreements in the agreement.
Previous wording
Return on average assets was 1.52% for the second quarter of 2025 compared to 1.13% for the first quarter of 2025. Return on average shareholders’ equity was 11.16% for the second quarter of 2025 compared to 8.46% for the first quarter of 2025.
Current wording
Linked quarter comparison: Third quarter 2025 net income was $71.9 million and earnings per diluted common share were $0.75. This compares with second quarter 2025 net income of $70.0 million and earnings per diluted common share of $0.73. Return on average assets was 1.54% for the third quarter of 2025 compared to 1.52% for the second quarter of 2025. Return on average shareholders’ equity was 11.08% for the third quarter of 2025 compared to 11.16% for the second quarter of 2025.
Previous wording
Year-to-date comparison: For the six months ended June 30, 2025, net income was $121.3 million and earnings per diluted common share were $1.27. This compares with net income of $111.5 million and earnings per diluted common share of $1.17 for the first six months of 2024. Return on average assets for the six months ended June 30, 2025 was 1.33% compared to 1.28% for the same period in 2024, and return on average shareholders' equity was 9.83% and 9.86% for the first six months of 2025 and 2024, respectively.
Current wording
Year-to-date comparison: For the nine months ended September 30, 2025, net income was $193.2 million and earnings per diluted common share were $2.02. This compares with net income of $163.9 million and earnings per diluted common share of $1.72 for the first nine months of 2024. Return on average assets for the nine months ended September 30, 2025 was 1.40% compared to 1.24% for the same period in 2024, and return on average shareholders' equity was 10.26% and 9.50% for the first nine months of 2025 and 2024, respectively.
Previous wording
Linked quarter comparison: Net interest income for the second quarter of 2025 was $158.3 million, which is an increase of $9.0 million, or 6.0%, from the first quarter of 2025. Net interest margin on a fully tax equivalent basis was 4.05% in the second quarter of 2025 compared to 3.88% for the first quarter of 2025. The net interest margin during the second quarter increased 17 basis points from the linked quarter as asset yields increased 5 bps and funding costs decreased 12 bps.
Current wording
Linked quarter comparison: Net interest income for the third quarter of 2025 was $160.5 million, which is an increase of $2.2 million, or 1.4%, from the second quarter of 2025. Net interest margin on a fully tax equivalent basis was 4.02% in the third quarter of 2025 compared to 4.05% for the second quarter of 2025. The net interest margin during the third quarter decreased 3 basis points from the linked quarter as earning asset yields decreased 2 bps and the cost of interest bearing liabilities increased 2 bps.
Previous wording
Interest income of $245.9 million increased $5.5 million, or 2.3%, in the second quarter of 2025 when compared to the first quarter of 2025. This was primarily due to the 5 bp increase in earning asset yields to 6.24%. Earning assets were $15.8 billion for the second quarter of 2025, an increase of $62.4 million, or 0.4%, compared to the first quarter of 2025. The change in earning assets included a modest increase in both average loan and average securities balances during the period.
Current wording
Interest income of $250.3 million increased $4.4 million, or 1.8%, in the third quarter of 2025 when compared to the second quarter of 2025. This increase was primarily driven by an increase in earning assets, partially offset by a 2 bp decline in the yield on those earning assets to 6.22%. Earning assets were $16.0 billion for the third quarter of 2025, which was an increase of $153.6 million, or 1.0%, compared to the second quarter of 2025. The change in earning assets included a modest increase in both average loan and average securities balances during the period.
Previous wording
The notional value of the Company's cash flow hedges was $1.0 billion as of both June 30, 2025 and December 31, 2024, with the $2.0 million and $4.9 million changes in the fair value recorded in AOCI in the Consolidated Balance Sheets, respectively. As of June 30, 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 42 months and 48 months, respectively.
Current wording
The notional value of the Company's cash flow hedges was $1.0 billion as of both September 30, 2025 and December 31, 2024, with the $1.4 million and $4.9 million changes in the fair value recorded in AOCI in the Consolidated Balance Sheets, respectively. As of September 30, 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 39 months and 48 months, respectively.
Previous wording
Year-to-date comparison: Net interest income of $307.6 million for the first six months of 2025 increased $5.5 million, or 1.8%, compared to the same period of 2024. Net interest margin on a fully tax equivalent basis was 3.96% for the six months ended June 30, 2025, which is a decrease of 14 bps when compared to the same period in 2024. Earning asset yields declined 44 bps, which outpaced the 40 bp decline in the cost of interest bearing liabilities.
Current wording
Year-to-date comparison: Net interest income of $468.1 million for the first nine months of 2025 increased $10.4 million, or 2.3%, compared to the same period of 2024. Net interest margin on a fully tax equivalent basis was 3.98% for the nine months ended September 30, 2025, which is a decrease of 11 bps when compared to the same period in 2024. Driven by declining interest rates, earning asset yields declined 45 bps, which outpaced the 44 bp decline in the cost of interest bearing liabilities.
Previous wording
Interest income of $486.3 million for the six months ended June 30, 2025 declined $7.1 million, or 1.4%, compared to $493.4 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 six months of 2025 increased $818.9 million, or 5.5%, when compared to the same period of 2024, driven primarily by a $505.4 million, or 4.5%, increase in average loan balances and a $310.8 million, or 9.9%, increase in average investment securities. While average loan yields for the six months of 2025 declined by 57 bps compared to the same period in the prior year, the average yield on investments increased by 25 bps as a result of rebalancing a portion of the investment portfolio.
Current wording
Interest income of $736.6 million for the nine months ended September 30, 2025 declined $14.0 million, or 1.9%, compared to $750.5 million for the same period of the prior year as lower interest rates more than offset the increase in earning asset balances. Average loan yields for the nine months of 2025 declined by 56 bps compared to the same period in the prior year, while the average yield on investments increased by 19 bps as a result of rebalancing a portion of the investment portfolio. Average earning assets of $15.8 billion for the first nine months of 2025 increased $771.0 million, or 5.1%, when compared to the same period of 2024, driven primarily by a $427.1 million, or 3.8%, increase in average loan balances and a $299.8 million, or 9.4%, increase in average investment securities.
Previous wording
Interest expense for the six months ended June 30, 2025 was $178.8 million compared to $191.4 million for the same period in the prior year. This decrease was primarily driven by a 34 bp decline in the cost of interest-bearing deposits, which was partially offset by an $883.1 million, or 8.6%, increase in average interest bearing deposits. Additionally, the cost of borrowed funds declined 43 bps from the same period in the prior year and average borrowings decreased $199.4 million, or 17.3%.
Current wording
Interest expense for the nine months ended September 30, 2025 was $268.5 million compared to $292.9 million for the same period in the prior year. This decrease was driven by a 39 bp decline in the cost of interest-bearing deposits, which was partially offset by an $821.0 million, or 7.9%, increase in average interest-bearing deposits. Additionally, the cost of borrowed funds declined 26 bps from the same period in the prior year and average borrowings decreased $210.0 million, or 18.7%.
Previous wording
Year-to-date comparison: Noninterest income of $119.1 million for the first six months of 2025 increased $11.1 million, or 10.3%, from $108.0 million in the comparable period of 2024. The increase was primarily attributed to higher leasing business income, net gains from sales of loans, service charges on deposit accounts and wealth management fees. These increases were partially offset by higher losses on investment securities in 2025. Leasing business income increased $8.1 million, or 25.7%, due to continued growth in operating lease balances and an increase in income from lease sales. Net gains from sales of loans increased $2.7 million, or 33.2%, primarily due to higher mortgage demands, while wealth management fee income increased $2.1 million, or 15.0%, due to higher business succession and consulting fee income. Service charges on deposit accounts increased $1.1 million, or 8.0%, due to an increase in overdraft and account analysis fees. Losses on investment securities increased $4.5 million compared to the the same period in the prior year due to the Bank rebalancing a portion of its investment portfolio and selling $164.5 million of securities while recognizing $9.9 million of loss in the first quarter of 2025.
Current wording
Year-to-date comparison: Noninterest income of $192.7 million for the first nine months of 2025 increased $39.0 million, or 25.3%, from $153.7 million in the comparable period of 2024. The increase was primarily attributed to higher leasing business income, higher net gains from sales of loans, fewer losses on the sales of investment securities, higher foreign exchange income, higher service charges on deposit accounts, higher client derivative fees, and higher wealth management fees. Leasing business income increased $12.3 million, or 25.4%, due to continued growth in operating lease balances and an increase in income from lease sales. Foreign exchange income increased $3.7 million, or 9.4%, as client demand increased during the period. Net gains from sales of loans increased $4.6 million, or 34.3%, primarily due to higher mortgage demand, while wealth management fee income increased $2.5 million, or 12.1%, due to higher business succession and consulting fee income. Client derivative fees increased $1.9 million, or 61.4%, due to higher demand for the product, while service charges on deposit accounts increased $1.4 million, or 6.5%, due to an increase in overdraft and account analysis fees. Losses on investment securities decreased $13.0 million in the first nine months of 2025 compared to the same period in the prior year due to higher losses recognized from the repositioning of a portion of the investment portfolio and impairment losses on two skilled nursing investments in the prior year.
Previous wording
Year-to-date comparison: Noninterest expenses were $256.7 million for the first six months of 2025, which was an increase of $10.8 million, or 4.4%, compared to the same period in 2024. This increase was primarily due to higher leasing business expenses, professional services, other noninterest expenses and salaries and benefits. Leasing business expenses increased $6.1 million, or 30.6%, as a result of the growth in the operating lease portfolio, while professional services increased $1.1 million, or 22.0%, due to expenses related to the Company's efficiency efforts and costs related to the pending Westfield acquisition. Other noninterest expenses increased $0.9 million, or 5.3%, due to an increase in meals and entertainment expenses as well as retail collection expenses. Salaries and benefits increased $0.9 million, or 0.6%, due to higher incentive compensation which is tied to fee income.
Current wording
Year-to-date comparison: Noninterest expenses were $391.0 million for the first nine months of 2025, which was an increase of $19.3 million, or 5.2%, compared to the same period in 2024. This increase was primarily due to higher leasing business expenses, salaries and employee benefits, data processing, professional services, and state intangible taxes. Leasing business expenses increased $8.1 million, or 25.4%, as a result of the growth in the operating lease portfolio, while professional services increased $1.1 million, or 15.4%, due to expenses related to the Company's efficiency efforts and acquisition-related costs in 2025. Salaries and benefits expense increased $6.7 million, or 3.0%, which was driven by higher incentive compensation tied to fee income. Data processing increased $1.3 million, or 5.1%, due to higher software licensing costs while state intangible taxes increased $1.3 million, or 49.4%, primarily due to an increase in Ohio franchise tax.
Previous wording
Linked quarter comparison: In the second quarter of 2025, First Financial recorded income tax expense of $17.9 million on pre-tax income of $87.9 million, resulting in an effective tax rate of 20.3%. This compared to income tax expense of $12.3 million on pre-tax income of $63.6 million and an effective tax rate of 19.4% for the first quarter 2025. The higher effective tax rate in the second quarter was primarily driven by higher taxable income and deductions for restricted stock awards issued in the first quarter.
Current wording
Linked quarter comparison: In the third quarter of 2025, First Financial recorded income tax expense of $18.8 million on pre-tax income of $90.7 million, resulting in an effective tax rate of 20.7%. This compared to income tax expense of $17.9 million on pre-tax income of $87.9 million and an effective tax rate of 20.3% for the second quarter 2025. The higher effective tax rate in the third quarter was primarily driven by higher taxable income and fewer tax credit investments recognized.
Previous wording
Year-to-date comparison: For the first six months of 2025, income tax expense was $30.2 million on pre-tax income of $151.5 million, resulting in an effective tax rate of 19.9%. This compared to income tax expense of $25.0 million on pre-tax income of $136.5 million and an effective tax rate of 18.3% 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.
Current wording
Year-to-date comparison: For the first nine months of 2025, income tax expense was $48.9 million on pre-tax income of $242.1 million, resulting in an effective tax rate of 20.2%. This compared to income tax expense of $37.5 million on pre-tax income of $201.4 million and an effective tax rate of 18.6% for the comparable period in 2024. The higher effective tax rate in 2025 compared to 2024 is primarily driven by higher taxable income and fewer tax credit investments recognized.
Previous wording
First Financial's investment portfolio totaled $3.6 billion at June 30, 2025 and $3.4 billion at December 31, 2024, or 19.2% and 18.2% of total assets, respectively. AFS securities totaled $3.4 billion at June 30, 2025 and $3.2 billion at December 31, 2024, while HTM securities totaled $73.0 million at June 30, 2025 and $77.0 million at December 31, 2024. The effective duration of the investment portfolio was 4.3 years at June 30, 2025 and 4.4 years at December 31, 2024.
Current wording
First Financial's investment portfolio totaled $3.6 billion at September 30, 2025 and $3.4 billion at December 31, 2024, or 19.5% and 18.2% of total assets, respectively. AFS securities totaled $3.4 billion at September 30, 2025 and $3.2 billion at December 31, 2024, while HTM securities totaled $71.6 million at September 30, 2025 and $77.0 million at December 31, 2024. The effective duration of the investment portfolio was 4.3 years at September 30, 2025 and 4.4 years at December 31, 2024.
Previous wording
The Company invests in certain securities whose realization is dependent on future principal and interest repayments. As such, these securities carry a certain amount of credit risk. Prior to purchase, First Financial performs a detailed collateral and structural analysis on these securities and strategically invests in asset classes in which First Financial has expertise and experience, as well as a senior position in the capital structure. First Financial continuously monitors credit risk and geographic concentration risk in its evaluation of market opportunities that enhance the overall performance of the portfolio.
Current wording
The Company invests in certain securities whose return is dependent on future principal and interest repayments. As such, these securities carry a certain amount of credit risk. Prior to purchase, First Financial performs a detailed collateral and structural analysis on these securities and strategically invests in asset classes in which First Financial has expertise and experience, as well as a senior position in the capital structure. First Financial continuously monitors credit risk and geographic concentration risk in its evaluation of market opportunities that enhance the overall performance of the portfolio.
Previous wording
The Company's Consolidated Financial Statements reflected a $216.7 million and $256.5 million unrealized after-tax losses on debt securities as of June 30, 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 period was primarily attributed to the recent easing of interest rates.
Current wording
The Company's Consolidated Financial Statements reflected $193.0 million and $256.5 million of unrealized, after-tax, losses on debt securities as of September 30, 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 period was primarily attributed to the recent easing of interest rates.
Previous wording
The Company had net unrealized losses of $6.8 million and $8.0 million on its HTM securities at June 30, 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.
Current wording
The Company had net unrealized losses of $5.7 million and $8.0 million on its HTM securities at September 30, 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 $0.2 million of unrealized gains on equity securities recorded in noninterest income for the six months ended June 30, 2025 compared to an insignificant unrealized gain for the same period of 2024.
Current wording
The Company had $0.2 million of unrealized gains on equity securities recorded in noninterest income for the nine months ended September 30, 2025 compared to $0.3 million of unrealized gains for the same period of 2024.
Previous wording
Excluding loans held for sale, loan balances increased $24.4 million, or 0.2%, to $11.8 billion as of June 30, 2025 when compared to December 31, 2024. C&I loans increased $111.9 million, or 2.9%, to $3.9 billion; home equity increased $54.3 million, or 6.4%, to $903.3 million; residential real estate loans increased $30.4 million, or 2.1%, to $1.5 billion; and credit cards increased $2.1 million, or 3.3%, to $64.4 million. Partially offsetting these increases, commercial real estate loans decreased $100.2 million, or 2.5%, to $4.0 billion; construction loans decreased $46.7 million, or 6.0%, to $732.8 million; finance leases decreased by $10.9 million, or 1.8%, to $587.2 million; and installment loans decreased $16.5 million, or 12.4%, to $116.6 million.
Current wording
Excluding loans held for sale, loan balances decreased $47.2 million, or 0.4%, to $11.7 billion as of September 30, 2025 when compared to December 31, 2024. Construction loans decreased $151.5 million, or 19.4%, to $628.0 million; installment loans decreased $23.3 million, or 17.5%, to $109.8 million; commercial real estate loans decreased $13.4 million, or 0.3%, to $4.0 billion; and finance leases decreased by $1.3 million, or 0.2%, to $596.7 million. Partially offsetting these decreases, home equity increased $86.9 million, or 10.2%, to $936.0 million; residential real estate loans increased $32.2 million, or 2.2%, to $1.5 billion; C&I loans increased $22.8 million, or 0.6%, to $3.8 billion; and credit cards increased $0.3 million, or 0.6%, to $62.7 million.
Previous wording
Second quarter 2025 average loans of $11.8 billion, excluding loans held for sale, increased $53.3 million, or 0.5%, from the first quarter 2025. The modest growth over the linked quarter included an increase of $93.8 million, or 2.5%, in C&I; an increase of $9.8 million, or 0.7%, in residential real estate; and an increase of $33.6 million, or 3.9%, in home equity. These increases were partially offset by a decrease of $59.5 million, or 1.5%, in CRE; a decrease of $13.1 million, or 1.6% in construction real estate; and a decrease of $9.5 million, or 7.4%, in installment loans.
Current wording
Third quarter 2025 average loans of $11.8 billion, excluding loans held for sale, increased $11.9 million, or 0.1%, from the second quarter 2025. The modest growth over the linked quarter included an increase of $34.8 million, or 0.9%, in CRE; an increase of $27.6 million, or 3.1%, in home equity; an increase of $11.4 million, or 2.0%, in finance leases; an increase of $9.9 million, or 0.3%, in C&I; and an increase of $4.5 million, or 0.3%, in residential real estate. These increases were partially offset by a decrease of $73.0 million, or 9.3%, in construction real estate; and a decrease of $3.7 million, or 3.1%, in installment loans.
Previous wording
Through the first six months of 2025, average loans of $11.7 billion, excluding loans held for sale, increased $500.8 million, or 4.5%, from the comparable period of 2024. The increase from prior year reflected broad-based growth across many loan categories, which included an increase of $204.6 million, or 5.6%, in C&I loans; an increase of $146.7 million, or 22.8%, in real estate construction; an increase of $131.7 million, or 9.8% in residential real estate; an increase of $97.2 million, or 12.5%, in home equity; and an increase of $87.9 million, or 17.8%, in lease financing. Partially offsetting these increases was a decrease of $135.7 million, or 3.3%, in CRE; and a decrease of $32.3 million, or 20.9%, in installment loans.
Current wording
Through the first nine months of 2025, average loans of $11.8 billion, excluding loans held for sale, increased $420.7 million, or 3.7%, from the comparable period of 2024. The increase from prior year reflected broad-based growth across many loan categories, which included an increase of $192.1 million, or 5.2%, in C&I loans; an increase of $117.7 million, or 8.6%, in residential real estate; an increase of $100.9 million, or 12.8%, in home equity; an increase of $79.6 million, or 11.6%, in real estate construction; and an increase of $72.5 million, or 14.1%, in lease financing. Partially offsetting these increases was a decrease of $112.4 million, or 2.7%, in CRE; and a decrease of $31.2 million, or 20.7%, in installment loans.
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 June 30, 2025, First Financial had $357.1 million of loans collateralized by non-owner occupied office space, which represents 3.0% of the total loan portfolio. The overall LTV of the office portfolio at origination was strong, and a majority is located in suburban locations secured by Class A and Class B assets. As of June 30, 2025, the office portfolio included two nonaccrual relationships totaling $13.8 million, or 3.9% of the portfolio.
Current wording
Additionally, given the potential for stress related to commercial office space, First Financial regularly monitors its exposure to this sector. As of September 30, 2025, First Financial had $347.5 million of loans collateralized by non-owner occupied office space, which represents 3.0% of the total loan portfolio. The overall LTV of the office portfolio at origination was strong, and a majority is located in suburban locations and secured by Class A and Class B assets. As of September 30, 2025, the office portfolio included one nonaccrual relationship totaling $12.5 million, or 3.6% of the portfolio.
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 $3.9 billion at June 30, 2025 and $3.8 billion at December 31, 2024. As of June 30, 2025, commitments with a fixed interest rate totaled $78.8 million while commitments with variable interest rates totaled $3.8 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 June 30, 2025 and December 31, 2024. The fixed rate commitments have maturities ranging from less than one year to 31.0 years at June 30, 2025 and maturities ranging from less than one year to 31.6 years at December 31, 2024.
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 $4.1 billion at September 30, 2025 and $3.8 billion at December 31, 2024. As of September 30, 2025, commitments with a fixed interest rate totaled $71.1 million while commitments with variable interest rates totaled $4.0 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 September 30, 2025 and December 31, 2024. The fixed rate commitments have maturities ranging from less than one year to 31.0 years at September 30, 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 for the third party. First Financial issued letters of credit aggregating $23.7 million and $25.1 million at June 30, 2025 and December 31, 2024, 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 for the third party. First Financial issued letters of credit aggregating $26.5 million and $25.1 million at September 30, 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 $284.4 million and $310.7 million at June 30, 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.
Current wording
First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $298.2 million and $310.7 million at September 30, 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 June 30, 2025, First Financial expects to recover its remaining investments through the use of the tax credits generated by the investments. First Financial had unfunded commitments related to tax credit investments of $101.0 million and $79.8 million at June 30, 2025 and December 31, 2024, 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 September 30, 2025, First Financial expects to recover its remaining investments through the use of the tax credits generated by the investments. First Financial had unfunded commitments related to tax credit investments of $97.0 million and $79.8 million at September 30, 2025 and December 31, 2024, respectively.
Previous wording
Nonaccrual loans were $76.9 million, or 0.65% of total loans, as of June 30, 2025, reflecting an $11.0 million, or 16.6%, increase from $66.0 million as of December 31, 2024. The increase was primarily attributed to the downgrade of two large C&I credits during the current period, partially offset by the sale of a large construction credit. Nonperforming assets, which consist of nonaccrual loans and OREO, were $77.1 million, or 0.41% of total assets, at June 30, 2025 compared to $66.0 million, or 0.36% of total assets, at December 31, 2024.
Current wording
Nonaccrual loans were $76.0 million, or 0.65% of total loans, as of September 30, 2025, reflecting a $10.0 million, or 15.1%, increase from $66.0 million as of December 31, 2024. The increase was primarily attributed to the downgrade of two large C&I credits during the current period, partially offset by the sale of a large construction credit. Nonperforming assets, which consist of nonaccrual loans and OREO, were $76.1 million, or 0.41% of total assets, at September 30, 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 $214.3 million as of June 30, 2025 compared to $224.1 million at December 31, 2024. Classified assets were 1.15% of total assets at June 30, 2025, compared to 1.21% as of December 31, 2024. At June 30, 2025, the total classified assets included a $37.0 million receivable from a customer, which was recorded following the mutually agreed upon termination of a foreign exchange trade and is expected to be collected in full. This receivable was $45.0 million at December 31, 2024.
Current wording
Classified assets, which are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse, totaled $218.8 million as of September 30, 2025 compared to $224.1 million at December 31, 2024. Classified assets were 1.18% of total assets at September 30, 2025, compared to 1.21% as of December 31, 2024. At September 30, 2025, total classified assets included a $37.0 million receivable from a customer, which was recorded following the mutually agreed upon termination of a foreign exchange trade and is expected to be collected in full. This receivable was $45.0 million at December 31, 2024.
Previous wording
The total ACL, which includes both funded and unfunded reserves, was $175.7 million at June 30, 2025 and $173.7 million as of December 31, 2024.
Current wording
The total ACL, which includes both funded and unfunded reserves, was $179.5 million at September 30, 2025 and $173.7 million as of December 31, 2024.
Previous wording
ACL - loans and leases. The ACL on loans and leases was $158.5 million as of June 30, 2025 and $156.8 million as of December 31, 2024. As a percentage of period-end loans, the ACL was 1.34% as of June 30, 2025 and 1.33% at December 31, 2024.
Current wording
ACL - loans and leases. The ACL on loans and leases was $161.9 million as of September 30, 2025 and $156.8 million as of December 31, 2024. As a percentage of total loans, the ACL was 1.38% as of September 30, 2025 and 1.33% at December 31, 2024.
Previous wording
In the second quarter of 2025, the Company recorded net charge-offs of $6.0 million, or 21 bps of average loans and leases on an annualized basis, compared to net charge-offs of $10.5 million, or 36 bps, for the first quarter of 2025. Through the first six months of 2025, the Company recorded net charge-offs of $16.5 million, or 28 bps of average loans and leases on an annualized basis, compared to net charge-offs of $14.8 million, or 27 bps, for the same period of 2024.
Current wording
In the third quarter of 2025, the Company recorded net charge-offs of $5.2 million, or 18 bps of average loans and leases on an annualized basis, compared to net charge-offs of $6.0 million, or 21 bps, for the second quarter of 2025. Through the first nine months of 2025, the Company recorded net charge-offs of $21.7 million, or 25 bps of average loans and leases on an annualized basis, compared to net charge-offs of $22.1 million, or 26 bps, for the same period of 2024.
Previous wording
The ACL as a percentage of nonaccrual loans was 206.1% at June 30, 2025 and 237.7% at December 31, 2024. The decrease in this ratio was driven primarily by the increase in nonaccrual loan balances during the current period.
Current wording
The ACL as a percentage of nonaccrual loans was 213.2% at September 30, 2025 and 237.7% at December 31, 2024. The decrease in this ratio was driven primarily by the increase in nonaccrual loan balances during the current period.
Previous wording
Provision expense is a product of the Company's ACL model coupled with net charge-off activity during the period. During both the first and second quarters of 2025, the Company recorded $9.1 million of provision expense for loans and leases. Through the first six months of 2025, the Company recorded provision expense of $18.2 million compared to $29.6 million for the same period of 2024. The higher provision expense in the first six months of 2024 was primarily attributed to loan growth, which included the Agile acquisition.
Current wording
Provision expense is a product of the Company's ACL model coupled with net charge-off activity during the period. During third quarter of 2025, the Company recorded $8.6 million of provision expense for loans and leases compared to $9.1 million for the prior quarter. Through the first nine months of 2025, the Company recorded provision expense of $26.8 million compared to $39.5 million for the same period of 2024.
Previous wording
ACL - unfunded commitments. The ACL on unfunded commitments was $17.1 million as of June 30, 2025 and $16.9 million as of December 31, 2024. First Financial recorded $0.7 million of provision expense for credit losses on unfunded commitments for the second quarter of 2025, compared to $0.4 million of provision recapture in the first quarter 2025. Through the first six months of 2025, the Company recorded a provision expense of $0.3 million compared to $2.0 million of provision recapture for the same period of 2024.
Current wording
ACL - unfunded commitments. The ACL on unfunded commitments was $17.6 million as of September 30, 2025 and $16.9 million as of December 31, 2024. First Financial recorded $0.5 million of provision expense for credit losses on unfunded commitments for the third quarter of 2025, compared to $0.7 million of provision expense in the second quarter 2025. Through the first nine months of 2025, the Company recorded a provision expense of $0.7 million compared to $1.3 million of provision recapture for the same period of 2024.
Previous wording
Total deposits were $14.4 billion as of June 30, 2025, an increase of $40.9 million, or 0.3%, from December 31, 2024. This increase was primarily driven by an increase of $30.4 million, or 0.6%, in savings, and an increase of $49.4 million, or 1.6%, in time deposits. Partially offsetting these increases, interest-bearing deposits decreased $38.5 million, or 1.2%.
Current wording
Total deposits were $14.4 billion as of September 30, 2025, an increase of $104.3 million, or 0.7%, from December 31, 2024. This increase was primarily driven by an increase of $80.3 million, or 1.6%, in savings deposits, and an increase of $141.4 million, or 4.5%, in time deposits. Partially offsetting these increases, interest-bearing deposits declined $112.6 million, or 3.6%, from the prior period.
Previous wording
Average deposits for the second quarter of 2025 were $14.4 billion, which was a increase of $114.1 million, or 0.8%, from $14.2 billion for the first quarter of 2025. Average savings deposits increased $87.5 million, or 1.8%, and average noninterest-bearing deposits increased $52.0 million, or 1.7%, from the prior quarter. Partially offsetting these increases, average interest bearing demand deposits decreased $23.5 million, or 0.8%.
Current wording
Average deposits for the third quarter of 2025 were $14.5 billion, which was an increase of $157.2 million, or 1.1%, from $14.4 billion for the second quarter of 2025. Average time deposits increased $157.6 million, or 5.0%, and savings deposits increased $49.0 million, or 1.0%, from the prior quarter. Partially offsetting these increases, average interest bearing demand deposits decreased $30.7 million, or 1.0%, and average noninterest-bearing deposits decreased $18.8 million, or 0.6%, from the prior period.
Previous wording
Average deposits for the first six months of 2025 increased $843.3 million, or 6.3%, when compared to the same period of 2024. This change was driven by a $453.3 million, or 10.1%, increase in average savings deposits; a $243.1 million, or 8.4%, increase in average time deposits; and a $186.7 million, or 6.5%, increase in average interest-bearing demand deposits. These increases were partially offset by a $39.8 million, or 1.3%, decrease in average noninterest-bearing demand deposits.
Current wording
Average deposits for the first nine months of 2025 increased $800.6 million, or 5.9%, when compared to the same period of 2024. This change was driven by a $422.0 million, or 9.2%, increase in average savings deposits; a $234.3 million, or 7.9%, increase in average time deposits; and a $164.7 million, or 5.7%, increase in average interest-bearing demand deposits. These increases were partially offset by a $20.4 million, or 0.6%, decrease in average noninterest-bearing demand deposits.
Showing the first 40 of 58 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Therefore, at September 30, 2025, all 5,000,000 common shares remained available for repurchase under the 2024 Stock Repurchase Plan.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Linked quarter comparison: Second quarter 2025 net income was $70.0 million and earnings per diluted common share were $0.73. This compares with first quarter 2025 net income of $51.3 million and earnings per diluted common share of $0.54.