FIRST FINANCIAL BANCORP /OH/
For the period ended Jun 30, 2026. Filed Aug 6, 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.
Jun 30, 2026 · Filed Aug 6, 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 2026-03-31; filed 2026-05-08.
0000708955-26-000096
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000708955-26-000144
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 207 previous paragraphs and 217 current paragraphs.
111 unchanged; 85 reworded; 20 added; 9 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 21 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 (20)
Current report
Finward Bancorp - Pending
Current report
In July 2026, subsequent to the end of the second quarter, First Financial entered into an agreement with Finward Bancorp to acquire all of its equity shares in an all-stock transaction. Under the terms of the agreement, each outstanding share of Finward common stock will be converted into the right to receive 1.35 shares of First Financial common stock, valuing the transaction at approximately $207.5 million, based on First Financial's closing stock price on July 20, 2026.
Current report
Headquartered in Munster, Indiana, Finward Bancorp is the sole owner of Peoples Bank, which will merge into First Financial Bank upon close of the transaction. As of March 31, 2026, Finward operated 24 banking centers in Northwest Indiana and the Chicagoland area and had, on an unaudited basis, approximately $2.0 billion in assets, which includes $1.5 billion in loans and $1.7 billion in deposits. This pending acquisition expands First Financial’s presence in the Northwest Indiana and Chicago markets with a strong core deposit franchise while supplementing its existing commercial banking and wealth management lines of business.
Current report
The closing of the Finward Bancorp transaction is subject to satisfaction of 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 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.
Current report
No First Financial shareholder approval is required, but the transaction is subject to approval by Finward's shareholders at
Current report
a special meeting of shareholders. First Financial expects the acquisition in the fourth quarter of 2026 or the first quarter of 2027.
Current report
Interest income of $280.9 million decreased $1.5 million, or 0.5%, in the second quarter of 2026 when compared to the first quarter of 2026. This decrease was primarily driven by a lower purchase accounting accretion, coupled with a slight decline in average earning assets, which were $19.3 billion for the second quarter of 2026, a decrease of $89.3 million, or 0.5%, compared to the first quarter of 2026.
Current report
Interest expense of $90.5 million decreased $2.3 million, or 2.4%, in the second quarter of 2026 when compared to the first quarter of 2026. The decrease in interest expense was primarily driven by a 4 bp decline in the cost of interest-bearing deposits to 2.29%, coupled with a lower average interest-bearing deposit balances. Additionally, average borrowed funds decreased $120.5 million, or 11.9%, from the linked quarter and the rates on borrowed funds declined 16 bps.
Current report
Gain on bargain purchase decreased $5.7 million, or 64.1%, due to the initial recognition of the BankFinancial transaction in the first quarter. Driven by lower client demand during the second quarter, foreign exchange income decreased $3.2 million, or 19.7%, and client derivative fees decreased $2.6 million, or 64.0%. Wealth management fees decreased $2.2 million, or 21.3%, from the first quarter due to lower investment banking fees.
Current report
Partially offsetting these decreases, other noninterest income increased $3.6 million, or 111.3%, due to higher income from bank owned life insurance and limited partnership investments while leasing business income increased $1.1 million, or 5.3%, as a result of continued growth from Summit. Net loss on investment securities decreased $0.9 million, or 73.3%, as a result of impairment losses recognized in the first quarter.
Current report
Linked quarter comparison: Second quarter 2026 noninterest expenses were $161.5 million, which was a decrease of $7.9 million, or 4.6%, from $169.4 million in the first quarter of 2026. This decrease was primarily driven by a decrease in salaries and benefits expenses which was partially offset by increases in professional services, marketing and data processing expenses.
Current report
Salaries and employee benefits decreased $12.9 million, or 13.0%, as a result of lower incentive compensation tied to lower fee income. Professional services increased $3.4 million, or 85.3%, and marketing expenses increased $1.0 million, or 36.3%, during the second quarter of 2026 due to costs related to the BankFinancial acquisition. The $0.9 million, or 7.1%, increase in data processing expenses was also acquisition-related.
Current report
Year-to-date comparison: Noninterest expenses were $331.0 million for the first six months of 2026, which was an increase of $74.2 million, or 28.9%, compared to the same period in 2025. This increase was broad-based, with increases across all expense categories. The primary drivers of this expense growth were the Westfield and BankFinancial acquisitions.
Current report
BankFinancial loans sold during the first quarter of 2026. Other noninterest expenses increased $5.0 million, or 22.8%, as a result of an increase in donations, insurance expense and credit origination expense while furniture and fixtures increased $1.7 million, or 24.1%, due to the additional cleaning and maintenance expenses for the branches acquired in the Westfield and BankFinancial acquisitions.
Current report
During the first six months of 2026, C&I loans increased $210.1 million, or 4.5%, to $4.8 billion; commercial real estate loans increased $164.3 million, or 3.7%, to $4.5 billion; home equity increased $53.0 million, or 5.3%, to $1.1 billion; and finance leases increased by $20.8 million, or 3.3%. Partially offsetting these increases, construction loans decreased $78.1 million, or 11.5%, to $599.3 million; installment loans decreased $32.2 million, or 17.1%, to $156.5 million; and residential real estate loans declined $27.1 million, or 1.5%, to $1.8 billion.
Current report
First Financial's short-term borrowings are utilized to manage the Company's normal liquidity needs. These borrowings primarily include advances from the FHLB, but may also include Fed Funds purchased from other banks or advances from the FRB discount window. The Company's long-term borrowings may include subordinated debt or long-term advances from the FHLB, FRB or other sources.
Current report
•costs related to the pursuit of mergers and acquisitions, including, but not limited to, the agreement to acquire Finward Bancorp (the “Merger Agreement”), as announced by the Company on our Form 8-K filed on July 21, 2026;
Current report
•the occurrence of any event, change or other circumstances, including, but not limited to, the ability to obtain regulatory approvals or shareholder approvals, the result of which could cause the parties not to consummate the Finward Transaction;
Current report
•the possibility that such costs or difficulties related to the mergers and acquisitions are greater than anticipated;
Current report
•risks relating to the potential dilutive effect of shares of the Company’s common stock proposed to be issued in the Finward Transaction;
Removed paragraphs (9)
Previous report
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 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.
Previous report
Year-to-date comparison: Net interest income of $189.6 million for the first three months of 2026 increased $40.3 million, or
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Reworded paragraphs (85)
Previous 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.
Current wording
First Financial Bancorp. is a $22.4 billion financial holding company headquartered in Cincinnati, Ohio. The Company primarily operates through First Financial Bank, an Ohio-chartered commercial bank with 151 full service banking centers as of June 30, 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 $4.6 billion in assets under management as of June 30, 2026, and provides services that include 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 month period ended March 31, 2026 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 six month periods ended June 30, 2026 are discussed in greater detail in the sections that follow.
Previous wording
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 wording
First Financial has also 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.
Previous wording
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 wording
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. During the second quarter of 2026, the Company consolidated two of the acquired BankFinancial locations as part of its ongoing integration efforts and evaluation of the combined branch network.
Previous wording
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 wording
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 $12.1 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.
Previous wording
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 wording
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 acquired and sold during the first quarter of 2026, they had no impact on the Company's Consolidated Balance Sheet.
Previous 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.
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 terms of the transaction, 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
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.
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, and this banking center opened during the first quarter of 2026.
Previous 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.
Current wording
Linked quarter comparison: Second quarter 2026 net income was $76.5 million and earnings per diluted common share were $0.73. This compares with first quarter 2026 net income of $74.4 million and earnings per diluted common share of $0.71. Return on average assets was 1.37% for the second quarter of 2026 compared to 1.34% for the first quarter of 2026. Return on average shareholders’ equity was 10.39% for the second quarter of 2026 compared to 10.24% for the first quarter of 2026.
Previous 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.
Current wording
Year-to-date comparison: For the six months ended June 30, 2026, net income was $150.9 million and earnings per diluted common share were $1.44. This compares with net income of $121.3 million and earnings per diluted common share of $1.27 for the first six months of 2025. Return on average assets for the six months ended June 30, 2026 was 1.36% compared to 1.33% for the same period in 2025, and return on average shareholders' equity was 10.32% and 9.83% for the first six months of 2026 and 2025, respectively.
Previous 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.
Current wording
Linked quarter comparison: Net interest income for the second quarter of 2026 was $190.4 million, which was an increase of $0.8 million, or 0.4%, from the first quarter of 2026. Net interest margin on a fully tax equivalent basis was 3.98% in the second quarter of 2026 compared to 3.99% for the first quarter of 2026. The net interest margin during the second quarter decreased 1 basis point from the linked quarter as earning asset yields decreased 7 bps, which was mostly offset by a 6 bp decline in cost of funds.
Previous 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.
Current wording
The notional value of the Company's cash flow hedges was $1.0 billion as of both June 30, 2026 and December 31, 2025, with the $0.3 million and $1.3 million changes in the fair value recorded in AOCI in the Consolidated Balance Sheets, respectively. As of June 30, 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 30 months and 36 months, respectively.
Previous 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.
Current wording
Year-to-date comparison: Net interest income of $380.0 million for the first six months of 2026 increased $72.4 million, or 23.5%, compared to the same period of 2025. Net interest margin on a fully tax equivalent basis was 3.98% for the six months ended June 30, 2026, which was an increase of 2 bps when compared to the same period in 2025, as a 48 bp decline in the cost of interest-bearing liabilities and higher interest earning asset balances more than offset a 34 bp decrease in earning asset yields and higher interest-bearing liabilities.
Previous 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.
Current wording
Interest income of $563.3 million for the six months ended June 30, 2026 grew $77.0 million, or 15.8%, compared to $486.3 million for the same period of the prior year as the increase in earning asset balances more than offset the decline in yield. Average earning assets of $19.3 billion for the first six months of 2026 increased $3.6 billion, or 22.6%, when compared to the same period of 2025, primarily due to the Westfield Bank and BankFinancial acquisitions. The change in earning assets included a $2.1 billion, or 17.5%, increase in average loan balances and a $1.5 billion, or 43.0%, increase in average investment securities. Average loan yields for the six months of 2026 decreased by 36 bps compared to the same period in the prior year, while the average yield on the investment portfolio increased by 5 bps in the first six months of 2026 primarily due to repositioning a portion of the portfolio in 2025.
Previous 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.
Current wording
Interest expense for the six months ended June 30, 2026 was $183.4 million compared to $178.8 million for the same period in the prior year. This increase was driven by a $2.7 billion, or 24.2%, increase in average interest-bearing deposits primarily due to the Westfield Bank and BankFinancial acquisitions, which was partially offset by a 47 bp decline in the cost on those deposits. Average borrowings decreased $4.1 million, or 0.4%, compared to the six months of 2025, while the cost of borrowed funds declined 4 bps compared to the same period of the prior year.
Previous wording
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 wording
Linked quarter comparison: Second quarter 2026 noninterest income was $73.8 million, decreasing $8.1 million, or 9.9%, compared to $81.9 million for the first quarter of 2026. The decrease from the linked quarter was primarily driven by lower gain on bargain purchase, foreign exchange income, client derivative fees and wealth management fees. These decreases were partially offset by increases in other noninterest income, leasing business income and fewer losses on investment securities.
Previous wording
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 wording
Year-to-date comparison: Noninterest income of $155.7 million for the first six months of 2026 increased $36.6 million, or 30.7%, from $119.1 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.
Previous wording
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 wording
Noninterest income included a $12.1 million gain on bargain purchase in the first half 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.
Previous 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.
Current wording
Losses on investment securities decreased $8.1 million in the first six months of 2026 as a result of the Bank repositioning a portion of the investment portfolio during the first half of 2025, which resulted in a $9.9 million loss during the prior period. Leasing business income increased $4.9 million, or 12.3%, due to continued portfolio growth and foreign exchange income increased $3.1 million, or 11.8%, as client demand increased compared to the prior year. Wealth management fees increased $2.8 million, or 17.6%, due to higher investment banking fees while service charges on deposit accounts increased $2.7 million, or 17.6%, due to an increase in deposit balances. Client derivative fees increased $2.2 million, or 68.0%, due to higher customer demand.
Previous wording
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 wording
Salaries and employee benefits increased $36.6 million, or 24.4%, due to the Westfield and BankFinancial acquisitions as well as an increase in incentive compensation tied to fee income. Intangible amortization expenses increased $7.8 million, or 164.8%, due to core deposit intangible amortization related to the Westfield and BankFinancial acquisitions. Data processing increased $8.4 million, or 47.4%, and occupancy expenses increased $3.2 million, or 27.2%, both driven by the Westfield and BankFinancial acquisitions. Leasing business expenses increased $2.8 million, or 10.8%, as a result of the growth in the operating lease portfolio, while professional services increased $5.1 million, or 80.9%, due to expenses related to the
Previous 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.
Current wording
Linked quarter comparison: In the second quarter of 2026, First Financial recorded income tax expense of $18.0 million on pre-tax income of $94.4 million, resulting in an effective tax rate of 19.0%. This compared to income tax expense of $19.1 million on pre-tax income of $93.6 million and an effective tax rate of 20.4% for the first quarter 2026. The lower effective tax rate in the second quarter of 2026 was primarily driven by higher tax-exempt income and lower nondeductible charitable contributions.
Previous 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.
Current wording
Year-to-date comparison: For the first six months of 2026, income tax expense was $37.1 million on pre-tax income of $188.0 million, resulting in an effective tax rate of 19.7%. This compared to income tax expense of $30.2 million on pre-tax income of $151.5 million and an effective tax rate of 19.9% for the comparable period in 2025. The lower effective tax rate in the first six months of 2026 compared to 2025 was primarily driven by the nontaxable bargain purchase gain, which was partially offset by higher income, lower tax-exempt income and higher nondeductible charitable contributions.
Previous 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.
Current wording
First Financial's investment portfolio totaled $4.9 billion at June 30, 2026 and $4.2 billion at December 31, 2025, or 21.9% and 19.7% of total assets, respectively. AFS securities totaled $4.7 billion at June 30, 2026 and $4.0 billion at December 31, 2025, while HTM securities totaled $46.1 million at June 30, 2026 and $58.5 million at December 31, 2025. The effective duration of the investment portfolio was 4.7 years at June 30, 2026 and 4.4 years at December 31, 2025.
Previous wording
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 wording
During the six months ended June 30, 2026 and 2025, the Company realized $1.6 million and $9.7 million, respectively, of losses on investment securities. The losses recognized in the first half of 2026 included $8.3 million of impairment losses on investments 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 the first six months of 2025 were primarily the result of a strategic repositioning of a portion of the investment portfolio in order to increase future yields.
Previous 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.
Current wording
The Company's Consolidated Financial Statements reflected $197.7 million and $163.9 million of unrealized, after-tax, losses on debt securities as of June 30, 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 investment balances.
Previous wording
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 wording
Certain unrealized losses on investment securities may be the result of credit deterioration. As of June 30, 2026, First Financial had four AFS securities with credit deterioration with a fair value totalling $19.9 million, net of $1.6 million unrealized losses, compared to six AFS securities with credit deterioration and a fair value totalling $20.9 million, net of 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.
Previous 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.
Current wording
The Company had net unrealized losses of $4.2 million on its HTM securities at both June 30, 2026 and December 31, 2025. 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 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.
Current wording
First Financial had $0.1 million of unrealized losses on equity securities recorded in noninterest income for the second quarter of 2026 compared to $0.2 million in the first quarter. The Company had $0.3 million of unrealized losses on equity securities for the first six months ended June 30, 2026 compared to $0.2 million of unrealized gains for the same period of 2025.
Previous wording
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 wording
Excluding loans held for sale, loan balances increased $310.8 million, or 2.3%, to $13.7 billion as of June 30, 2026 when compared to December 31, 2025. This increase was primarily driven by the acquisition of $264.1 million of loans in the BankFinancial transaction along with growth from the Company's specialty finance businesses.
Previous 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.
Current wording
Second quarter 2026 average loans of $13.6 billion, excluding loans held for sale, increased $9.4 million, or 0.1%, from the first quarter 2026. Average loan balances for the first six months of 2026 increased $1.8 billion, or 15.7%, when compared to same period of 2025 driven by the acquisitions of Westfield and BankFinancial. The increase from the prior year included an increase of $912.8 million, or 23.8%, in C&I loans; an increase of $508.5 million, or 12.8%, in CRE; an increase of $342.7 million, or 23.1%, in residential real estate; an increase of $155.0 million, or 17.7%, in home equity; an increase of $55.3 million, or 9.5%, in lease financing; an increase of $40.4 million, or 33.0%, in installment loans; and an increase of $3.4 million, or 5.1%, in credit cards. These increases were partially offset by a decrease of $177.5 million, or 22.5%, in construction loans.
Previous 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.
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 June 30, 2026, First Financial had $371.2 million of loans collateralized by non-owner occupied office space, which represents 2.7% 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 June 30, 2026, the office portfolio included three nonaccrual relationships totaling $28.0 million, or 7.5% of the total office portfolio.
Previous wording
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 wording
Loans to NDFI totaled $464.8 million, or 3.4% of total loans, as of June 30, 2026. NDFI include a wide range of financial
Previous wording
regulated by the Federal banking agencies. The NDFI balances at March 31, 2026 included $277.1 million in loans to
Current wording
regulated by the Federal banking agencies. The NDFI balances at June 30, 2026 included $278.2 million in loans to
Previous wording
mortgage credit intermediaries, $123.9 million in loans to business credit intermediaries, and $22.7 million of loans to other
Current wording
mortgage credit intermediaries (primarily REITs), $120.7 million in loans to business credit intermediaries, $37.6 million in loans to private equity funds, and $28.3 million of loans to other NDFI, including consumer credit intermediaries. As of June 30, 2026, all of the loans to NDFI had an internal credit rating of pass.
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 $4.7 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.
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 June 30, 2026 and $4.5 billion at December 31, 2025. As of June 30, 2026, commitments with a fixed interest rate totaled $103.4 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 36% at June 30, 2026 and 0% to 21% at December 31, 2025. The fixed rate commitments have maturities ranging from less than one year to 31.0 years at June 30, 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 $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.
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 $35.9 million and $36.6 million at June 30, 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 $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.
Current wording
First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $377.0 million and $335.0 million at June 30, 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 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.
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 June 30, 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 $111.2 million and $103.0 million at June 30, 2026 and December 31, 2025, respectively.
Previous 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
Current wording
Nonaccrual loans were $96.2 million, or 0.70% of total loans, as of June 30, 2026, reflecting a $5.7 million, or 5.6%, decline from $101.8 million as of December 31, 2025. Nonperforming assets, which consist of nonaccrual loans and OREO, were
Previous wording
$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 wording
$96.3 million, or 0.43% of total assets, at June 30, 2026 compared to $102.0 million, or 0.48% of total assets, at December 31, 2025.
Showing the first 40 of 85 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the three months ended June 30, 2026, the Company realized losses on investment securities of $0.3 million and realized gains on investment securities of $0.2 million for the comparable period in 2025. The losses recognized in the second quarter of 2026 included $3.3 million of impairment losses on investments with credit deterioration where the Company determined that it no longer intended to hold the security until the recovery of the amortized cost basis.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
NDFI, such as private equity funds and consumer credit intermediaries. As of March 31, 2026, all of the loans to NDFI had
Previous report — wording carried elsewhere
an internal credit rating of pass.