First Financial Bancorp — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $81.2 million ($0.77 per diluted share) for the three months ended September 30, 2026, compared to $76.5 million ($0.73 per diluted share) in the second quarter of 2026.
• Earnings per diluted share for the nine months ended September 30, 2026, were $2.21, up from $2.02 in the same period in 2025.
• Return on average assets (ROAA) was 1.44% for the quarter, increasing from 1.37% in the second quarter of 2026.
• Return on average tangible common equity (ROTCE) was 18.67% for the quarter, up from 17.95% in the second quarter of 2026.
• Net interest margin (NIM) on a fully tax-equivalent (FTE) basis was 4.07%, a 9 basis point increase from the linked quarter, driven by a 13 basis point increase in asset yields partially offset by a 4 basis point increase in funding costs.
• Total noninterest income was $77.7 million, with adjusted noninterest income at $77.6 million, representing an 8% increase from the linked quarter.
• Noninterest expenses were $165.7 million; adjusted expenses were $156.9 million. The efficiency ratio was 60.5%, or 57.3% on an adjusted basis.
• Loan balances increased by $170.2 million (4.9% annualized) during the quarter.
• Average deposit balances increased by $52.4 million (1.2% annualized); excluding brokered CDs, average deposits increased by $144.0 million.
• Total allowance for credit losses was $209.8 million, with an ACL to total loans ratio of 1.38%.
• Annualized net charge-offs were $7.2 million, or 21 basis points of total loans.
• Nonperforming assets increased 2 basis points to 0.45% of total assets; classified assets increased to 1.26% of total assets.
• Total capital ratio increased 8 basis points to 15.83%; Tier 1 common equity increased 21 basis points to 12.54%.
• Tangible book value per share was $15.65, a 5.9% decrease from the linked quarter.

Guidance and Future Outlook:

• Management expects low to mid-single-digit loan growth for the remainder of 2026.
• Expenses are expected to moderate in the fourth quarter following elevated levels driven by incentive costs, healthcare claims, and credit collection costs.
• The company anticipates resolving the workout of a single ICRE relationship that drove the increase in classified assets over the next few quarters.
• Management remains focused on closing the year on a strong note and carrying momentum into 2027.

Business Segments and Product Lines:

• Loan growth was driven by Commercial & Industrial (C&I), Consumer, and Summit segments.
• Noninterest income growth was driven by double-digit percentage increases in wealth management income, bankcard income, and client derivative fees.
• Foreign exchange income increased $4.4 million (33.5%) from the linked quarter.
• Leasing business income was $23.0 million.
• Wealth Management business had approximately $4.5 billion in assets under management as of September 30, 2026.
• The company operates 151 full-service banking centers in Ohio, Indiana, Kentucky, and Illinois.

Market and Competitive Landscape:

• The company received Federal regulatory approval for the acquisition of Finward Bancorp.
• The Finward acquisition is expected to close on January 1, 2027, subject to state regulatory and Finward shareholder approvals.
• The company received its second consecutive Outstanding rating from the Federal Reserve for Community Reinvestment Act performance in 2025.
• The company was recognized as a Gallup Exceptional Workplace Award winner in 2025.

Risks and Challenges:

• Classified assets increased to 1.26% of total assets primarily due to the downgrade of a single ICRE relationship.
• Tangible book value per share and tangible common equity declined in response to a sharp increase in interest rates during the second half of the quarter.
• Expenses were elevated due to incentive costs associated with record revenues, higher healthcare claims, and increased credit and collection costs.
• Forward-looking statements note risks including economic conditions, credit quality performance, regulatory changes, and the possibility that the Finward transaction may not be consummated.

Management Commentary and Tone:

• Archie Brown, President and CEO, stated he was "very pleased" with third-quarter performance, noting adjusted net income of $87.8 million and adjusted EPS of $0.84.
• Brown highlighted that earnings per share increased 11% from the third quarter of 2025 and were the highest in the Company's history.
• Management expressed encouragement regarding the strength and diversification of fee income, which accounted for 28% of total revenues.
• Brown acknowledged recent changes to the senior leadership structure designed to promote continuity and reinforce the company's engagement-centric culture.

Other Key Points:

• The Board of Directors approved a quarterly dividend of $0.26 per common share, payable on December 15, 2026, to shareholders of record as of December 1, 2026.
• The company reported a gain on bargain purchase of $37 million for the quarter.
• Amortization of tax credit investments was $0.8 million for the quarter.
• Acquisition-related expenses totaled $7.5 million for the quarter.
• The company has 2,251 full-time equivalent employees as of September 30, 2026.