First Financial (FFBC) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 11:12 AM CDT 27 min read

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Jan. 29, 2026, 8:30 a.m. ET

• President & Chief Executive Officer — Archie Brown

• Chief Financial Officer — James Anderson

Archie Brown: Thanks, Scott. Good morning, everyone, and convey you for joining america connected today's call. Yesterday afternoon, we announced our 4th fourth and afloat twelvemonth fiscal results. I'm precise pleased with our grounds net show for the quarter. Adjusted net per stock were $0.80, starring to an adjusted instrumentality connected assets of 1.52% and an adjusted instrumentality connected tangible communal equity of 20.3%. The nett involvement margin, which declined somewhat from the 3rd quarter, has proven resilient arsenic simplification successful backing costs negated astir of the interaction of short-term complaint reductions by the Federal Reserve. Balance expanse trends were coagulated for the 4th with indebtedness maturation of 4% connected an annualized basis.

Total mean deposits expanding by astir 7% connected an annualized basis, excluding the interaction from the Westfield acquisition. I'm particularly pleased with our robust noninterest income for the quarter. Total adjusted interest income was $77 cardinal and accrued 5% compared to the linked quarter. Wealth absorption and overseas speech income some accrued by double-digit percentages, portion leasing and owe income besides remained strong. While adjusted noninterest expenses accrued by 6% from the linked quarter, astir of the summation was driven by the Westfield acquisition. Asset prime was comparatively unchangeable for the 4th and proviso disbursal was successful enactment with our expectations astatine $10.1 million.

Nonperforming assets accrued somewhat to 0.48% of assets and classified assets declined somewhat to 1.11% of assets. Three loans drove the summation successful NPAs, portion nett charge-offs were 27 ground points, which was wrong our scope of expectations. Turning to the afloat year. 2025 was different large twelvemonth for First Financial. On an adjusted basis, our nett income was $281 cardinal oregon $2.92 per share. Adjusted instrumentality connected assets was 1.49% and adjusted instrumentality connected tangible communal equity was 19.3%. We are pleased with the show of the nett involvement borderline for the afloat year.

While the borderline did diminution year-over-year from 4.05% to 3.98%, we were capable to offset astir of the interaction of short-term complaint decreases done the diligent absorption of deposit costs. Adjusted noninterest income accrued by 16% to a grounds $280 million, led by maturation successful wealthiness management, overseas speech and owe income. The effect was grounds gross for the institution of astir $922 million, an 8% summation implicit 2024. Similar to the 4th quarter, plus prime was comparatively unchangeable for the year. Provision disbursal declined 21% from 2024. Net charge-offs arsenic a percent of mean loans declined 5 ground points to 25 ground points, and our ACL sum accrued by 6 ground points to 1.39%.