FIRST FINANCIAL BANCORP /OH/
For the period ended Mar 31, 2026. Filed May 8, 2026.
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, 2026 · Filed May 8, 2026
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 2025-09-30; filed 2025-11-04.
0000708955-25-000109
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0000708955-26-000096
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 187 previous paragraphs and 207 current paragraphs.
101 unchanged; 68 reworded; 36 added; 15 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 19 previous and 21 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 (36)
Current report
Additionally, First Financial has established loan production offices in multiple locations outside its primary footprint to broaden its geographic presence, enhance access to prospective borrowers and support growth, thereby strengthening the Company's overall operations.
Current report
With the addition of 17 retail banking locations, the acquisition expanded First Financial’s presence in the Chicago market with a strong core deposit franchise while supplementing its existing commercial banking and wealth management lines of business.
Current report
The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and
Current report
liabilities assumed at their estimated fair value for the BankFinancial acquisition.
Current report
As the fair value of net identifiable assets acquired exceeded the purchase price for BankFinancial, the transaction resulted in the recognition of a gain on bargain purchase of $8.9 million. This gain is recorded within Noninterest income in the Company's Consolidated Statement of Income and arose primarily from transaction-specific market factors, including the relative profitability profile of BankFinancial and the Company’s strategic focus on BankFinancial’s core deposit franchise and Chicago market presence.
Current report
Acquired loans held for sale represent certain multi-family loans that First Financial determined were not in alignment with the Company's long-term portfolio strategy, risk profile or concentration objectives. Management received multiple indications of interest on these loans, ultimately consummating the sale in March of 2026. The sales price of the loans sold approximated fair value at acquisition. As these loans were sold prior to the end of the quarter, they had no impact on the Company's Statement of Condition at March 31, 2026.
Current report
The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and
Current report
liabilities assumed at their estimated fair value for the Westfield acquisition.
Current report
Interest expense of $92.8 million increased $1.5 million, or 1.6%, in the first quarter of 2026 when compared to the fourth quarter of 2025. The increase in interest expense was primarily driven by higher interest-bearing deposit balances. The Company's average deposit balances increased $1.7 billion, or 10.6%, to $17.6 billion. The increase in average deposits was primarily driven by the full quarter impact from the Westfield Bank and BankFinancial acquisitions. Average borrowed funds increased $163.5 million, or 19.3%, from the linked quarter.
Current report
Year-to-date comparison: Net interest income of $189.6 million for the first three months of 2026 increased $40.3 million, or
Current report
Linked quarter comparison: First quarter 2026 noninterest income was $81.9 million, increasing $17.1 million, or 26.5%, compared to $64.8 million for the fourth quarter of 2025. The increase from the linked quarter was primarily driven by gain on bargain purchase, fewer losses on investment securities, leasing business income, client derivative fees and wealth management fees. These increases were partially offset by a decline in foreign exchange income.
Current report
Noninterest income included an $8.9 million gain on bargain purchase in the first quarter of 2026 that resulted from the BankFinancial acquisition. The gain on bargain purchase arose primarily from transaction-specific market factors, including the relative profitability profile of BankFinancial and the Company’s strategic focus on BankFinancial’s core deposit franchise and Chicago market presence.
Current report
Net loss on investment securities decreased $11.3 million, or 90.0%, as a result of losses on securities sold in the fourth quarter of 2025 not recurring in the current period. Leasing business income increased $2.1 million, or 10.7%, as a result of continued growth from Summit. Client derivative fees increased $1.3 million, or 49.6%, due to higher demand for the product while wealth management fees increased $1.2 million, or 12.9%, due to higher business succession income. These increases were partially offset by a $6.4 million, or 28.1%, decrease in foreign exchange income in the first quarter of 2026 as client demand moderated after a record fourth quarter.
Current report
Year-to-date comparison: Noninterest income of $81.9 million for the first three months of 2026 increased $30.8 million, or 60.3%, from $51.1 million in the comparable period of 2025. The increase was primarily attributed to the gain on bargain purchase recognized in conjunction with the BankFinancial acquisition, fewer losses on investment securities, and increases in foreign exchange income, leasing business income, client derivative fees, wealth management fees, net gains from sales of loans and service charges on deposit accounts.
Current report
Linked quarter comparison: First quarter 2026 noninterest expense was $169.4 million, which was an increase of $19.9 million, or 13.3%, from $149.5 million in the fourth quarter of 2025. This increase was primarily driven by higher salaries and benefits expense, intangible amortization expense, data processing expense, occupancy expense, and leasing business expense, which were partially offset by a decrease in professional services expense.
Current report
Salaries and employee benefits expense increased $14.7 million, or 17.3%, while data processing increased $2.2 million, or 20.9%, both due to the Westfield and BankFinancial acquisitions. Similarly, intangible amortization expense increased $2.3 million, or 59.4%, as a result of amortization of core deposit intangibles related to the Westfield and BankFinancial acquisitions while occupancy expense increased $1.2 million, or 19.6%, due to additional rent and utilities expense related to the branches acquired in the Westfield and BankFinancial acquisitions. Professional services expenses declined $2.2 million, or 36.0%, due to fewer acquisition-related expenses during the first quarter of 2026 compared to the fourth quarter of 2025.
Current report
Year-to-date comparison: Noninterest expenses were $169.4 million for the first three months of 2026, which was an increase of $41.3 million, or 32.3%, compared to the same period in 2025. This increase was primarily due to higher salaries and employee benefits, intangible amortization expense, data processing expense, occupancy expense, leasing business expense, professional services, and other noninterest expenses.
Current report
Salaries and employee benefits expense increased $24.6 million, or 32.7%, due to the Westfield and BankFinancial acquisitions as well as an increase in incentive compensation tied to fee income. Intangible amortization expense increased $3.9 million, or 165.4%, due to core deposit intangible amortization related to the Westfield and BankFinancial acquisitions. Data processing increased $3.9 million, or 44.5%, and occupancy increased $1.5 million, or 25.5%, both of which were driven by the Westfield and BankFinancial acquisitions. Leasing business expenses increased $1.3 million, or 10.4%, as a result of the growth in the operating lease portfolio, while professional services increased $1.2 million, or 45.5%, due to the accelerated recognition of debt issuance costs in conjunction with the redemption of $150.0 million of subordinated debt in the first quarter of 2026. Other noninterest expenses increased $2.2 million, or 19.3%, as a result of an increase in donations, insurance expense and credit origination expense.
Current report
During the three months ended March 31, 2026 and 2025, the Company realized $1.3 million and $9.9 million, respectively, of losses on investment securities. The losses recognized in 2026 included a $5.0 million impairment loss on an investment with credit deterioration where the Company determined that it no longer intended to hold the security until the recovery of the amortized cost basis. 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.
Current report
Some unrealized losses may be the result of credit deterioration. As of March 31, 2026, First Financial had six AFS securities with credit deterioration totalling $22.5 million, net of $5.6 million unrealized losses, compared to six AFS securities with credit deterioration totalling $20.9 million, net unrealized losses of $9.8 million, as of December 31, 2025. The Company continues to monitor these securities and believes it will receive full par value for these securities.
Current report
Excluding loans held for sale, loan balances increased $70.8 million, or 0.5%, to $13.5 billion as of March 31, 2026 when compared to December 31, 2025. This increase was primarily drive by the acquisition of $264.1 million of loans in the BankFinancial transaction. Broken down by loan type, commercial real estate loans increased $88.9 million, or 2.0%, to $4.5 billion; C&I loans increased $61.5 million, or 1.3%, to $4.7 billion; home equity increased $21.6 million, or 2.2%, to $1.0 billion; finance leases increased by $11.1 million, or 1.7%, to $649.6 million; and credit cards increased $1.0 million, or 1.6%, to $66.4 million. Partially offsetting these increases, construction loans decreased $86.3 million, or 12.7%, to $591.1 million; installment loans decreased $26.4 million, or 14.0%, to $162.3 million. Residential real estate loan balances were relatively stable at $1.8 billion.
Current report
Loans to NDFI totaled $423.6 million, or 3.1% of total loans, as of March 31, 2026. NDFI include a wide range of financial
Current report
entities that provide services similar to those of traditional banks but do not accept deposits from the general public and are not
Current report
regulated by the Federal banking agencies. The NDFI balances at March 31, 2026 included $277.1 million in loans to
Current report
mortgage credit intermediaries, $123.9 million in loans to business credit intermediaries, and $22.7 million of loans to other
Current report
NDFI, such as private equity funds and consumer credit intermediaries. As of March 31, 2026, all of the loans to NDFI had
Current report
an internal credit rating of pass.
Current report
$100.8 million, or 0.44% of total assets, at March 31, 2026 compared to $102.0 million, or 0.48% of total assets, at December 31, 2025.
Current report
DEPOSITS
Current report
Total deposits were $17.9 billion as of March 31, 2026, an increase of $1.5 billion, or 9.1%, from December 31, 2025. This increase was primarily driven by the acquisition of BankFinancial which included $1.2 billion in deposit balances. Compared to the prior period, the March 31, 2026 balances for noninterest-bearing deposits increased $517.3 million, or 14.9%; savings deposits increased $487.0 million, or 8.2%; interest-bearing demand deposits increased $297.5 million, or 8.9%; and time deposits increased $195.0 million, or 5.4%.
Current report
BORROWINGS
Current report
First Financial's short-term borrowings are utilized to manage the Company's normal liquidity needs. These borrowings include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, as well as overnight advances from the FHLB. The Company's long-term borrowings consist of subordinated debt, FRB borrowings, FHLB long-term advances and repurchase agreements utilizing investment securities pledged as collateral.
Current report
In 2020, First Financial issued $150.0 million of fixed to floating rate subordinated notes that would have matured in May 2030 and had an initial fixed interest rate of 5.25%. The Company elected to redeem these subordinated notes in whole on the February 2026 interest payment date. Therefore, these notes are not included in the Consolidated Balance Sheet as of March 31, 2026.
Current report
In November 2025, First Financial issued $300.0 million of fixed to floating rate subordinated notes. These subordinated notes have an initial fixed interest rate of 6.375% to, but excluding, December 1, 2030, payable semi-annually in arrears. From, and including, December 1, 2030, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term SOFR, plus 300 basis points, payable quarterly in arrears. These subordinated notes mature on December 1, 2035 and are redeemable by the Company in whole or in part beginning with the interest payment date of December 1, 2030. These subordinated notes are eligible to be treated as Tier 2 capital for 100% of its original issuance amount at March 31, 2026 for regulatory capital purposes.
Current report
In conjunction with the BankFinancial transaction, First Financial acquired $18.5 million of fixed to floating rate subordinated notes. These subordinated notes were originated in April 2021 and have an initial fixed interest rate of 3.75% to, but excluding, May 15, 2026, payable semi-annually in arrears. From, and including, May 15, 2026, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term SOFR, plus 299 basis points, payable quarterly in arrears. These subordinated notes mature on May 15, 2031 and are redeemable by the Company, in whole or in part, on May 15, 2026, on any interest payment date thereafter, and at any time upon the occurrence of certain events. These acquired subordinated notes are eligible to be treated as Tier 2 capital for 100% of its original issuance amount at March 31, 2026 for regulatory capital purposes.
Current report
Risk-based capital. First Financial and its subsidiary, First Financial Bank, are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated under regulatory guidelines. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate regulatory action.
Removed paragraphs (15)
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
Agile Premium Finance
Previous report
In February 2024, First Financial completed its acquisition of Agile Premium Finance for $96.9 million in an all cash transaction. Headquartered in Lincolnshire, IL, Agile originates commercial loans for the payment of annual property and casualty insurance for businesses. Agile is among industry leaders in the premium finance lending space and is active in all 50 states. Agile loans are secured by the unearned premium of the insurance policies and have an average original term of approximately ten months. Upon completion of the transaction, Agile became a division of the Bank and continues to operate as Agile Premium Finance, taking advantage of its existing brand recognition within the insurance premium financing industry.
Previous report
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 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
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 report
DEPOSITS AND FUNDING
Previous report
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.
Reworded paragraphs (68)
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 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.
Current wording
First Financial Bancorp. is a $22.8 billion financial holding company headquartered in Cincinnati, Ohio. The Company primarily operates through First Financial Bank, an Ohio-chartered commercial bank with 153 full service banking centers as of March 31, 2026. 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 $4.3 billion in assets under management as of March 31, 2026, 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 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.
Current wording
The primary components of First Financial’s operating results for the three month period ended March 31, 2026 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 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.
Current wording
First Financial also has certain specialty lending platforms that extend nationally 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
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 wording
BankFinancial, National Association, a national banking association, and a wholly owned subsidiary of BankFinancial Corporation, merged into First Financial Bank effective January 1, 2026. Under the terms of the agreement, each share of BankFinancial Corporation common stock was converted into 0.48 shares of First Financial common stock, or 5,980,878 total shares, valuing the transaction at $149.7 million based on the closing price of First Financial stock at December 31, 2025.
Previous wording
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 wording
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. 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 closed, for a total purchase price of $324.4 million.
Previous wording
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 wording
The Westfield acquisition supplemented First Financial’s existing commercial banking and wealth management presence in Northeast Ohio by adding all seven of Westfield's retail banking locations and its commercial, insurance agency and private banking services. Additionally, Westfield had one banking center that was under construction at the time of the acquisition. This banking center opened during the first quarter of 2026.
Previous wording
For analytical purposes, net interest income is presented in the following table adjusted to a tax equivalent basis assuming a 21% marginal tax rate. Net interest income is disclosed on a tax equivalent basis to consistently reflect income from tax-exempt assets, such as municipal loans and investments, in order to facilitate a comparison between taxable and tax-exempt amounts. Management believes it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis as these measures provide useful information to make peer comparisons.
Current wording
For analytical purposes, net interest income is presented in the following table adjusted to a tax equivalent basis assuming a 21% marginal tax rate. Net interest income is disclosed on a tax equivalent basis to consistently reflect income from tax-exempt assets, such as municipal loans and investments, in order to facilitate a comparison between taxable and tax-exempt amounts. Management believes it is standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis as these measures provide useful information to make peer comparisons.
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. 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.
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.
Previous 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.
Current wording
Linked quarter comparison: First quarter 2026 net income was $74.4 million and earnings per diluted common share were $0.71. This compares with fourth quarter 2025 net income of $62.4 million and earnings per diluted common share of $0.64. Return on average assets was 1.34% for the first quarter of 2026 compared to 1.22% for the fourth quarter of 2025. Return on average shareholders’ equity was 10.24% for the first quarter of 2026 compared to 9.18% for the fourth quarter of 2025.
Previous 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.
Current wording
Year-to-date comparison: For the three months ended March 31, 2026, net income was $74.4 million and earnings per diluted common share were $0.71. This compares with net income of $51.3 million and earnings per diluted common share of $0.54 for the first three months of 2025. Return on average assets for the three months ended March 31, 2026 was 1.34% compared to 1.13% for the same period in 2025, and return on average shareholders' equity was 10.24% and 8.46% for the first three months of 2026 and 2025, respectively.
Previous 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.
Current wording
Linked quarter comparison: Net interest income for the first quarter of 2026 was $189.6 million, which was an increase of $15.6 million, or 9.0%, from the fourth quarter of 2025. Net interest margin on a fully tax equivalent basis was 3.99% in the first quarter of 2026 compared to 3.98% for the fourth quarter of 2025. The net interest margin during the first quarter increased 1 basis point from the linked quarter as deposit costs declined 13 bps, offsetting a 12 bp decline in asset yields.
Previous 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.
Current wording
Interest income of $282.4 million increased $17.1 million, or 6.4%, in the first quarter of 2026 when compared to the fourth quarter of 2025. This increase was primarily driven by an increase in earning assets, partially offset by a 12 bp decline in the yield on those earning assets to 5.91%. Earning assets were $19.4 billion for the first quarter of 2026, which was an increase of $1.9 billion, or 11.1%, compared to the fourth quarter of 2025. The change in earning assets was primarily driven by the BankFinancial acquisition.
Previous 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.
Current wording
The notional value of the Company's cash flow hedges was $1.0 billion as of both March 31, 2026 and December 31, 2025, with the $0.1 million and $1.3 million changes in the fair value recorded in AOCI in the Consolidated Balance Sheets, respectively. As of March 31, 2026 and December 31, 2025, the maximum length of time over which the Company was hedging its exposure to the variability in future cash flows was 33 months and 36 months, respectively.
Previous 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.
Current wording
27.0%, compared to the same period of 2025. Net interest margin on a fully tax equivalent basis was 3.99% for the three months ended March 31, 2026, which is an increase of 11 bps when compared to the same period in 2025, as a 53 bp decrease in the cost of interest-bearing deposits outpaced a 28 bp decline in earning asset yields.
Previous 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.
Current wording
Interest income of $282.4 million for the three months ended March 31, 2026 grew $42.0 million, or 17.5%, compared to $240.4 million for the same period of the prior year as the increase in earning asset balances more than offset decline in yields. Average earning assets of $19.4 billion for the first three months of 2026 increased $3.6 billion, or 23.1%, when compared to the same period of 2025, driven primarily by a $2.3 billion, or 19.6%, increase in average loan balances and a $1.4 billion, or 39.8%, increase in average investment securities as a result of the Westfield Bank and BankFinancial acquisitions. Average loan yields for the three months of 2026 declined by 32 bps compared to the same period in the prior year, while the average yield on the investment portfolio increased by 7 bps in the first quarter of 2026 due to repositioning a portion of the portfolio in 2025.
Previous 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%.
Current wording
Interest expense for the three months ended March 31, 2026 was $92.8 million compared to $91.1 million for the same period in the prior year. This increase was driven by a $2.8 billion, or 24.7%, increase in average interest-bearing deposits primarily due to the Westfield Bank and BankFinancial acquisitions, which was partially offset by a 53 bp decline in the cost on those deposits. Average borrowings increased $10.8 million, or 1.1%, compared to the first quarter of 2025, while the cost of borrowed funds increased 18 bps compared to the same period due to a mix shift that included more long-term borrowings in 2026.
Previous 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.
Current wording
An $8.9 million gain bargain purchase was recognized during the first three months of 2026 in connection with the BankFinancial acquisition as the fair value of net assets acquired exceeded the purchase price. Losses on investment securities decreased $8.7 million in the first three months of 2026 as a result of the Bank repositioning a portion of the investment portfolio during the first quarter of 2025, which resulted in a $9.9 million loss during the prior period. Foreign exchange income increased $3.8 million, or 30.0%, as client demand increased compared to the prior year and leasing business income increased $2.9 million, or 15.5%, due to continued portfolio growth and an increase in sales of leases. Client derivative fees increased $2.4 million, or 155.3%, due to higher demand, while wealth management fees increased $2.3 million, or 28.8%, due to higher business succession income. Net gains from sales of loans increased $1.7 million, or 39.9%, primarily due to higher mortgage demand resulting from lower interest rates, while service charges on deposit accounts increased $1.6 million, or 20.8%, due to an increase in deposit balances.
Previous 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.
Current wording
Linked quarter comparison: In the first quarter of 2026, First Financial recorded income tax expense of $19.1 million on pre-tax income of $93.6 million, resulting in an effective tax rate of 20.4%. This compared to income tax expense of $16.7 million on pre-tax income of $79.1 million and an effective tax rate of 21.2% for the fourth quarter 2025. The lower effective tax rate in the first quarter of 2026 was primarily driven by more tax credit investments recognized and deductions for restricted stock awards vesting during the period.
Previous 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.
Current wording
Year-to-date comparison: For the first three months of 2026, income tax expense was $19.1 million on pre-tax income of $93.6 million, resulting in an effective tax rate of 20.4%. 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 comparable period in 2025. The higher effective tax rate in 2026 compared to 2025 was primarily driven by higher taxable income, nondeductible charitable contributions and fewer restricted stock awards vesting during the period.
Previous 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.
Current wording
First Financial's investment portfolio totaled $5.1 billion at March 31, 2026 and $4.2 billion at December 31, 2025, or 22.6% and 19.7% of total assets, respectively. AFS securities totaled $5.0 billion at March 31, 2026 and $4.0 billion at December 31, 2025, while HTM securities totaled $49.6 million at March 31, 2026 and $58.5 million at December 31, 2025. The effective duration of the investment portfolio was 4.3 years at March 31, 2026 and 4.4 years at December 31, 2025.
Previous 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.
Current wording
The Company's Consolidated Financial Statements reflected $191.6 million and $163.9 million of unrealized, after-tax, losses on debt securities as of March 31, 2026 and December 31, 2025, respectively. These unrealized losses were included as a component of equity in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The increase in unrealized losses was primarily attributed to the increase in the investment portfolio, as well as an increase in interest rates.
Previous 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.
Current wording
The Company had net unrealized losses of $4.3 million and $4.2 million on its HTM securities at March 31, 2026 and December 31, 2025, 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 nine months ended September 30, 2025 compared to $0.3 million of unrealized gains for the same period of 2024.
Current wording
The Company had $0.2 million of unrealized losses on equity securities recorded in noninterest income for the three months ended March 31, 2026 compared to insignificant unrealized losses for the same period of 2025.
Previous 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.
Current wording
First quarter 2026 average loans of $13.6 billion, excluding loans held for sale, increased $797.3 million, or 6.2%, from the fourth quarter 2025. The growth over the linked quarter included the full quarter impact from the Westfield and BankFinancial acquisitions. The increase in average loan balances included an increase of $206.2 million, or 4.9%, in CRE; an increase of $460.7 million, or 10.7%, in C&I; an increase of $117.0 million, or 6.8%, in residential real estate; an increase of $34.7 million, or 3.5%, in home equity; an increase of $12.7 million, or 2.1%, in finance leases; and an increase of $3.0 million, or 1.8%, in installment loans. These increases were partially offset by a decrease of $36.6 million, or 5.4%, in construction real estate.
Previous 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.
Current wording
Compared to the first quarter of 2025, average loans increased $1.9 billion, or 15.9%. The increase from the comparable period in the prior year included an increase of $983.9 million, or 26.0%, in C&I loans; an increase of $428.0 million, or 10.7%, in CRE; an increase of $358.8 million, or 24.3%, in residential real estate; an increase of $157.9 million, or 18.4%, in home equity; an increase of $45.1 million, or 7.7%, in lease financing; an increase of $39.8 million, or 31.3%, in installment loans; and an increase of $3.1 million, or 4.6% in credit cards. Partially offsetting these increases, average real estate construction balances declined $153.8 million, or 19.3%.
Previous 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.
Current wording
Given the potential for stress related to commercial office space, First Financial performed targeted reviews of its exposure to this sector. As of March 31, 2026, First Financial had $389.8 million of loans collateralized by non-owner occupied office space, which represents 2.9% 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 March 31, 2026, the office portfolio included three nonaccrual relationships totaling $30.9 million, or 7.9% of the total office 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 $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.
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 $4.7 billion at March 31, 2026 and $4.5 billion at December 31, 2025. As of March 31, 2026, commitments with a fixed interest rate totaled $92.0 million while commitments with variable interest rates totaled $4.6 billion. At December 31, 2025, commitments with a fixed interest rate totaled $75.0 million while commitments with variable interest rates totaled $4.4 billion. The fixed rate commitments have interest rates ranging from 0% to 21% at both March 31, 2026 and December 31, 2025. The fixed rate commitments have maturities ranging from less than one year to 31.0 years at March 31, 2026 and maturities ranging from less than one year to 31.6 years at December 31, 2025.
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 $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.
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 $36.3 million and $36.6 million at March 31, 2026 and December 31, 2025, 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 $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.
Current wording
First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $360.8 million and $335.0 million at March 31, 2026 and December 31, 2025, 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, 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.
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, 2026, 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 $101.6 million and $103.0 million at March 31, 2026 and December 31, 2025, respectively.
Previous wording
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, it is appropriate under FASB ASC Topic 450, Contingencies, for First Financial to accrue a contingency reserve if a loss is deemed based upon the advice of legal counsel to be both probable and reasonably estimated. First Financial had no reserves related to litigation matters as of September 30, 2025 and December 31, 2024.
Current wording
In 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, 2026. 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 March 31, 2026 or December 31, 2025.
Previous 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.
Current wording
Nonaccrual loans were $100.5 million, or 0.75% of total loans, as of March 31, 2026, reflecting a $1.3 million, or 1.2%, decline from $101.8 million as of December 31, 2025. Nonperforming assets, which consist of nonaccrual loans and OREO, were
Previous 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.
Current wording
Classified assets, which are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse, totaled $232.4 million as of March 31, 2026 compared to $235.5 million at December 31, 2025. Classified assets were 1.02% of total assets at March 31, 2026, which declined from 1.11% at December 31, 2025 due to the addition of BankFinancial increasing total assets in the first quarter of 2026. Total classified assets at both March 31, 2026 and December 31, 2025 included a $37.0 million receivable from a customer, which was recorded following the mutually agreed upon termination of a foreign exchange trade. First Financial expects this receivable to be collected in full.
Previous wording
The recorded adjustments to remove or reduce values of the loans and leases from the Consolidated Balance Sheets due to credit deterioration are referred to as charge-offs. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or from the liquidation of collateral. All loans charged-off are subject to continuous review and concerted efforts are made to maximize any recovery. In most cases, the borrower’s debt obligation is not canceled even though the loan balance may have been charged-off. Actual losses on loans and leases are posted against the ACL as a charge-off. Any subsequent collection of a previously charged-off loan is credited back to the ACL as a recovery.
Current wording
The removal or reduction of the recorded values of loans and leases from the Consolidated Balance Sheets due to credit deterioration are referred to as charge-offs. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or from the liquidation of collateral. All loans charged-off are subject to continuous review and concerted efforts are made to maximize any recovery. In most cases, the borrower’s debt obligation is not canceled even though the balance may have been charged-off. Actual losses on loans and leases are charged against the ACL. Any subsequent recovery of a previously charged-off loan is credited back to the ACL.
Previous 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.
Current wording
The total ACL, which includes both funded and unfunded reserves, was $206.7 million at both March 31, 2026 and December 31, 2025.
Previous 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.
Current wording
ACL - loans and leases. The ACL on loans and leases was $183.7 million as of March 31, 2026 and $186.5 million as of December 31, 2025. As a percentage of total loans, the ACL was 1.36% as of March 31, 2026 and 1.39% at December 31, 2025. At March 31, 2026, the ACL on loans and leases included $2.8 million that was recorded in conjunction with the BankFinancial acquisition.
Previous 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.
Current wording
In the first quarter of 2026, the Company recorded net charge-offs of $11.6 million, or 35 bps of average loans and leases on an annualized basis, compared to net charge-offs of $8.8 million, or 27 bps, for the fourth quarter of 2025 and $10.5 million, or 36 bps, for the first quarter of 2025. This increase in net charge-offs during the first quarter of 2026 was driven by a single commercial relationship.
Previous 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.
Current wording
The ACL as a percentage of nonaccrual loans was 182.7% at March 31, 2026 and 183.2% at December 31, 2025. The decrease in this ratio was driven primarily by the decline in the ACL on loans in leases outpacing the decline 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 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.
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 2026, the Company recorded $6.0 million of provision expense for loans and leases compared to $9.7 million for the prior quarter and $9.1 million for the first quarter 2025.
Previous 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.
Current wording
ACL - unfunded commitments. The ACL on unfunded commitments was $23.0 million as of March 31, 2026 and $20.2 million as of December 31, 2025. First Financial recorded $2.5 million of provision expense for credit losses on unfunded commitments for the first quarter of 2026, compared to $0.4 million of provision expense in the fourth quarter 2025 and $0.4 million of provision recapture for the first quarter of 2025.
Showing the first 40 of 68 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
First Financial encourages readers to consider its Consolidated Financial Statements in their entirety and not to rely upon any single financial measure.
Current report — wording carried from elsewhere
Effective April, 2026, First Financial's Board of Directors approved a stock repurchase plan (the 2026 Stock Repurchase Plan). The 2026 Stock Repurchase Plan authorizes the purchase of up to 5,000,000 shares of the Company's common stock and will expire on December 31, 2027. At March 31, 2026, no common shares were yet available for repurchase under the 2026 Stock Repurchase Plan.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
First Financial maintains diverse funding sources, including Fed Funds, the Fed discount window, brokered CDs, FHLB borrowings and deposit placement services. The Company believes this diversity and related capacity provide sufficient flexibility to respond to any event that would stress its deposit balances.
Previous report — wording carried elsewhere
Therefore, at September 30, 2025, all 5,000,000 common shares remained available for repurchase under the 2024 Stock Repurchase Plan.