First Financial Bancorp Announces Record Third Quarter Financial Results and Quarterly Dividend

• Earnings per diluted share of $0.77; $0.84 on an adjusted⁽¹⁾ basis; 11% increase from the third quarter of 2025 and highest in Company history
• Return on average assets of 1.44%; 1.56% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 4.07%; 9 bp increase from linked quarter
• Loan growth of $170 million, or 4.9% on an annualized basis
• Record adjusted⁽¹⁾ noninterest income; $5.7 million, or 8%, increase from the linked quarter
• ROTCE of 18.7%; 20.2% on adjusted⁽¹⁾ basis
• Received Federal regulatory approval for Finward acquisition; expected to close 1/1/27

CINCINNATI, Oct. 27, 2026 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2026.

For the three months ended September 30, 2026, the Company reported net income of $81.2 million, or $0.77 per diluted common share.  These results compare to net income of $76.5 million, or $0.73 per diluted common share, for the second quarter of 2026.  For the nine months ended September 30, 2026, First Financial had earnings per diluted share of $2.21 compared to $2.02 for the same period in 2025.

Return on average assets for the third quarter of 2026 was 1.44% while return on average tangible common equity was 18.67%⁽¹⁾.  These compare to return on average assets of 1.37% and return on average tangible common equity of 17.95%⁽¹⁾ in the second quarter of 2026. 

Third quarter 2026 highlights include:

• Robust net interest margin of 4.05%, or 4.07% on a fully tax-equivalent basis⁽¹⁾
  • 9 bp increase from second quarter driven by 13 bp increase in asset yields, partially offset by a 4 bp increase in funding costs

• Noninterest income of $77.7 million; $77.6 million on an adjusted⁽¹⁾ basis
  • Double digit percentage growth from linked quarter in wealth management income, bankcard income, and client derivative fees
  • Foreign exchange income increased $4.4 million, or 33.5%, from linked quarter
  • Strong leasing business income of $23.0 million

• Noninterest expenses of $165.7 million; $156.9 million on an adjusted⁽¹⁾ basis
  • Adjustments⁽¹⁾ include $7.5 million of acquisition related expenses, $0.8 million of amortization of tax credit investments and $0.6 million of other expenses not expected to recur
  • Increase from prior quarter driven by compensation costs tied to fee income, as well as increases in credit collection and healthcare costs
  • Efficiency ratio of 60.5%; 57.3% as adjusted⁽¹⁾

• Solid loan growth during the quarter
  • Loan balances increased $170.2 million, or 4.9% on an annualized basis, compared to linked quarter
  • Quarterly growth driven by C&I, Consumer and Summit

• Moderate deposit growth during the quarter
  • Average deposit balances increased $52.4 million, or 1.2% on an annualized basis
  • Growth in interest-bearing demand accounts, money market accounts and retail CDs offset a decline in brokered CDs, savings, and noninterest-bearing accounts
  • Excluding brokered CDs, average deposits increased $144.0 million

• Total Allowance for Credit Losses of $209.8 million; Total quarterly provision expense of $8.9 million
  • Loans and leases - ACL of $191.7 million
  • ACL to total loans of 1.38%
  • Unfunded Commitments - ACL of $18.2 million
  • Annualized net charge-offs were  $7.2 million in third quarter, or 21 bps of total loans
  • Nonperforming assets increased 2 bps to 0.45% of total assets
  • Classified assets increased to 1.26% of total assets primarily due to the downgrade of a single ICRE relationship

• Capital ratios remain strong despite significant decline in AOCI
  • Total capital ratio increased 8 bps to 15.83%
  • Tier 1 common equity increased 21 bps to 12.54%
  • Tangible common equity of 7.81%⁽¹⁾; 9.65%⁽¹⁾ excluding impact from AOCI
  • Tangible book value per share of $15.65⁽¹⁾; 5.9% decrease from linked quarter

Additionally, the Board of Directors approved a quarterly dividend of $0.26 per common share for the next regularly scheduled dividend, payable on December 15, 2026 to shareholders of record as of December 1, 2026.

Archie Brown, President and CEO, commented on third quarter results, "I am very pleased with our performance in the third quarter.  Adjusted⁽¹⁾ net income was $87.8 million and adjusted⁽¹⁾ earnings per share were $0.84, which resulted in an adjusted⁽¹⁾ return on assets of 1.56% and an adjusted⁽¹⁾ return on tangible common equity of 20.2%.  Earnings per share increased 11% from the third quarter of 2025 and were the highest in the Company's history.  We delivered record third quarter revenue of $273.9 million, driven by a strong net interest margin of 4.07% and record adjusted⁽¹⁾ fee revenue of $77.6 million." 

Mr. Brown continued, "Loan balances increased moderately during the quarter, consistent with our prior quarter outlook, with particularly strong growth in our C&I portfolio.  Loan pipelines remain healthy as we enter the fourth quarter, and we expect low to mid single digit loan growth as we close out 2026." 

Mr. Brown continued, discussing fees and expenses, "We are very encouraged by the strength and diversification of our fee income, as adjusted⁽¹⁾ noninterest income was a record $77.6 million and 28% of total revenues.  Growth from the linked quarter was driven by strong performances from foreign exchange, wealth management, client derivatives and bankcard income.

"As a result of our strong fee income and overall operating performance, expenses were elevated during the quarter, driven primarily by incentive costs associated with our record revenues, as well as higher health care claims and increased credit and collection costs.  We expect expenses to moderate in the fourth quarter."

Mr. Brown commented on asset quality and capital, "Credit quality trends were stable during the third quarter.  Net charge-offs and nonperforming assets were comparable to second quarter levels, while classified assets increased significantly.  The increase in classified assets was primarily driven by the downgrade of a single ICRE relationship with multiple loans, and we expect to resolve the workout of this relationship over the next few quarters.

"All regulatory capital ratios increased from the second quarter; however, tangible book value per share and tangible common equity declined in response to the sharp increase in interest rates during the second half of the quarter.  Tangible book value per share decreased 6% from the linked quarter to $15.65, while tangible common equity declined 43 basis points from June 30, to 7.81% at the end of September." 

Mr. Brown concluded, "We delivered another strong quarter and have had an excellent year to date.  We are pleased to have received Federal regulatory approval for our acquisition of Finward and expect to close the transaction on January 1, 2027, subject to the receipt of state regulatory and Finward shareholder approvals. Looking ahead, we remain focused on closing the year on a strong note, completing the Finward transaction, and carrying our momentum into 2027.

"Finally, I want to acknowledge the recently announced changes to our senior leadership structure.  These changes were designed to promote continuity, reinforce our commitment to strong financial performance, and maintain our engagement-centric culture.  I have tremendous confidence in Jamie and the rest of our leadership team, and the positive impact we are already seeing from these organizational changes underscores the strength of our people, our culture, and our continued commitment to serving our clients and communities."

Full detail of the Company's third quarter 2026 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information

First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Wednesday, October 28, 2026 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (833) 461-5787 (U.S. toll free), meeting ID 257491860.  The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on Website

This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position.  Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

No Offer or Solicitation

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval with respect to the proposed transaction between First Financial and Finward. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Important Additional Information and Where to Find It

In connection with the proposed transaction, First Financial filed a Registration Statement on Form S-4 (the "Registration Statement") with the SEC to register the shares of First Financial capital stock to be issued in connection with the proposed transaction, which became effective with the SEC on September 28, 2026. The Registration Statement includes a proxy statement of Finward and a prospectus of First Financial (the "Proxy Statement/Prospectus"), and First Financial and Finward may file with the SEC other relevant documents concerning the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST FINANCIAL, FINWARD AND THE PROPOSED TRANSACTION AND RELATED MATTERS.

A copy of the Registration Statement, Proxy Statement/Prospectus, as well as other filings containing information about First Financial and Finward, may be obtained, free of charge, at the SEC's website (www.sec.gov). Copies of documents filed with the SEC by First Financial will be made available free of charge in the "Investor Relations" section of First Financial's website, https://www.bankatfirst.com/about/investor-relations.html. Copies of documents filed with the SEC by Finward will be made available free of charge in the "Investor Relations" section of Finward's website, https://www.investorrelations.ibankpeoples.com. The information on First Financial's and Finward's websites is not, and shall not be deemed to be, a part of this communication or incorporated into other filings either First Financial makes with the SEC.

Participants in the Solicitation

First Financial, Finward and certain of their respective directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction between First Financial and Finward. Information concerning First Financial's participants is set forth in the Proxy Statement, dated April 16, 2026, for First Financial's 2026 annual meeting of stockholders as filed with the SEC on Schedule 14A.  Information concerning Finward's participants is set forth in the Proxy Statement, dated April 3, 2026, for Finward's 2026 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction and interests of participants of First Financial and Finward in the solicitation of proxies in respect of the proposed transaction is included in the Registration Statement and Proxy Statement/Prospectus to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, which statements involve inherent risks and uncertainties. Examples of forward-looking statements include, but are not limited to, statements regarding the operations of First Financial Bancorp. and its subsidiaries (the "Company", "First Financial", "we", "us", or "our") such as (i) our future operating or financial performance, including revenues, income or loss and earnings per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the uncertainties and assumptions that underlie our forward-looking statements. Such statements are often characterized by the use of qualified words (and their derivatives) such as "may," "will," "anticipate," "could," "should," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "project" and "intend," as well as words of similar meaning or other statements concerning opinions or judgment of First Financial or their respective management about future events.  Forward-looking statements are based on assumptions as of the time they are made and are subject to risks, uncertainties and other factors that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following:

• economic, market, liquidity, credit, interest rate, operational and technological risks associated with First Financial's business;
• future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses;
• the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; 
• management's ability to effectively execute its business plans;
• pursuit of mergers and acquisitions, including costs or difficulties related to any acquisitions and/or integrations of any acquired companies;
• the possibility that any of the anticipated benefits of First Financial's prior, in process, or contemplated acquisitions will not be realized or will not be realized within the expected time period;
• the possibility that any of acquisitions that have not yet been consummated, such as the acquisition of Finward Bancorp, is not consummated for any reason, including the failure to satisfy any closing conditions, termination of a merger agreement by either party, or the failure to receive any required regulatory or shareholder approvals; 
• the effect of changes in accounting policies and practices;
• changes in consumer spending, borrowing and saving and changes in unemployment;
• changes in customers' performance and creditworthiness;
• the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
• current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth;
• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
• the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
• the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
• a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
• our ability to develop and execute effective business plans and strategies.

These factors are not necessarily all of the factors that could cause First Financial's actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the results of First Financial. Although First Financial believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results of First Financial will not differ materially from any projected future results expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described above can be found in First Financial's most recent annual report on Form 10-K for the fiscal year ended December 31, 2025, quarterly reports on Form 10-Q, and other documents subsequently filed by First Financial with the Securities Exchange Commission ("SEC"). Investors are cautioned not to rely too heavily on any such forward-looking statements. First Financial urges you to consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by First Financial. Forward-looking statements speak only as of the date they are made, and First Financial undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. 

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  As of September 30, 2026, the Company had $22.3 billion in assets, $13.9 billion in loans, $17.7 billion in deposits and $2.9 billion in shareholders' equity.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $4.5 billion in assets under management as of September 30, 2026.  The Company operated 151 full service banking centers as of September 30, 2026, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis.  In 2025, First Financial Bank received its second consecutive Outstanding rating from the Federal Reserve for its performance under the Community Reinvestment Act and was recognized as a Gallup Exceptional Workplace Award winner, one of only 70 Gallup clients worldwide to receive this designation.  Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.