First Financial Bancorp Q3 EPS rises 11% to record

Overview

• U.S. regional bank's Q3 EPS rose 11% yr/yr to record high

• Company posted record Q3 revenue, driven by strong net interest margin and fee income

• Received federal approval for Finward acquisition, expected to close Jan. 1, 2027

Outlook

• Company expects low to mid single digit loan growth for the remainder of 2026

• First Financial expects expenses to moderate in the fourth quarter

• Company anticipates resolving a downgraded ICRE relationship over the next few quarters

Result Drivers

• NET INTEREST MARGIN - Q3 net interest margin rose 9 bp from prior quarter, driven by higher asset yields, partially offset by increased funding costs

• FEE INCOME - Record adjusted noninterest income was driven by strong performances from foreign exchange, wealth management, client derivatives and bankcard income

• LOAN GROWTH - Co said Q3 loan balances increased moderately, with particularly strong growth in C&I portfolio

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Financial Bancorp. is $37.00, about 13.3% above its October 26 closing price of $32.67

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 27 - First Financial Q3 profit jumps year-over-year on higher interest margin

• Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth

• Oct 26 - German American Bancorp Q3 net income rises on higher yields and margin expansion

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)