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First Financial Bancorp Announces Second Quarter 2026 Financial Results, Quarterly Dividend Increase & Acquisition of Finward Bancorp


News provided by

First Financial Bancorp.

Jul 21, 2026, 16:30 ET

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  • Earnings per diluted share of $0.73; $0.80 on an adjusted(1) basis is highest in Company history 
  • Return on average assets of 1.37%; 1.50% on an adjusted(1) basis 
  • Net interest margin on FTE basis(1) of 3.98% 
  • Loan growth of $240 million, or 7.1% on an annualized basis 
  • Net charge-offs 0.20% of total loans 
  • ROTCE of 18.0%; 19.7% on adjusted(1) basis 
  • Board of Directors approved quarterly dividend increase to $0.26 to be paid in 3Q26 
  • Agreement to acquire Finward Bancorp, the holding company for Peoples Bank, in all stock transaction 

CINCINNATI, July 21, 2026 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2026, as well as the pending acquisition of Finward Bancorp ("Finward").

Second Quarter Financial Results

For the three months ended June 30, 2026, the Company reported net income of $76.5 million, or $0.73 per diluted common share.  These results compare to net income of $74.4 million, or $0.71 per diluted common share, for the first quarter of 2026.  For the six months ended June 30, 2026, First Financial had earnings per diluted share of $1.44 compared to $1.27 for the same period in 2025.

Return on average assets for the second quarter of 2026 was 1.37% while return on average tangible common equity was 17.95%(1).  These compare to return on average assets of 1.34% and return on average tangible common equity of 17.78%(1) in the first quarter of 2026.

Second quarter 2026 highlights include:

  • Robust net interest margin of 3.96%, or 3.98% on a fully tax-equivalent basis(1) 
    • 1 bp decline from first quarter driven by a 7 bp decline in asset yields, which was partially offset by a 6 bp decrease in funding costs
    • Decline in loan accretion diluted net interest margin 5 bps; accretion decline primarily related to lower-than-expected prepayment rates on acquired mortgage loans  
  • Noninterest income of $73.8 million; $71.9 million on an adjusted(1) basis 
    • Adjustments include a $0.3 million loss on securities and $2.2 million of acquisition-related adjustments 
    • Leasing business income continues strong performance with a 5.3% increase from first quarter to $22.8 million
    • Other noninterest income increased $3.6 million, or 111.3%, from the linked quarter, due to higher income from bank owned life insurance and limited partnership investments
    • Foreign exchange income of $13.1 million
  • Noninterest expenses of $161.5 million, or $149.1 million as adjusted(1); 3.7% decrease from linked quarter 
    • Adjustments(1) include $11.6 million of acquisition related expenses and $0.8 million of amortization of tax credit investments and other expenses not expected to recur
    • Decrease from prior quarter driven by lower compensation costs
    • Efficiency ratio of 61.2%; 56.8% as adjusted(1) 
  • Strong loan growth during the quarter 
    • End of period loan balances increased $240 million compared to the linked quarter
    • Quarterly growth was broad-based, highlighted by C&I, Summit and seasonal growth from Agile 
  • Stable deposit balances during the quarter 
    • Total average deposit balances increased $41 million, or 0.9% on an annualized basis 
    • Growth in interest-bearing demand accounts and seasonal influx of public funds offset a decline in time deposits and brokered CDs
    • Excluding brokered CD, average deposits increased $168.6 million 
  • Total Allowance for Credit Losses of $208.2 million; Total quarterly provision expense of $8.2 million 
    • Loans and leases - ACL of $189.9 million
    • ACL to total loans of 1.38%; increased 2 bps from linked quarter
    • Unfunded Commitments - ACL of $18.3 million
    • Annualized net charge-offs were 20 bps of total loans; 15 bp decline from linked quarter
    • Slight declines in classified and nonperforming assets 
  • Capital ratios remain strong
    • Total capital ratio increased 5 bps to 15.75% 
    • Tier 1 common equity increased 11 bps to 12.33% 
    • Tangible common equity of 8.24%(1); 9.30%(1) excluding impact from AOCI 
    • Tangible book value per share of $16.64(1); 3.0% increase 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 September 15, 2026 to shareholders of record as of September 1, 2026.

Archie Brown, President and CEO commented on Second Quarter results, "The second quarter was another active quarter as we remained focused on post-integration efforts related to the Westfield acquisition and successfully converted BankFinancial systems.  Our second quarter operating results were strong, and we are very pleased with our performance.  Adjusted(1) net income for the period was a record $83.9 million or $0.80 per share, with an adjusted(1) return on assets of 1.50% and an adjusted(1) return on tangible common equity of 19.7%.  These adjusted(1) earnings per share represented an 8% increase from the second quarter of 2025 and were driven by increases in earning assets from a combination of organic loan growth and our recent acquisitions.  Our net interest margin was stable at approximately 4.00% as lower funding costs offset a decline in loan accretion income.  Assuming no significant changes in interest rates, we expect our margin to remain stable over the near-term."

Mr. Brown continued, "Loan growth for the quarter was 7% on an annualized basis, and reflected continued momentum across the portfolio with C&I, Agile and Summit being the primary drivers of our increase in balances.  Loan originations increased 23% over the first quarter and advanced stage pipelines remain strong heading into the back half of the year.  We expect loan production to remain healthy and contribute to solid growth in the third quarter."

Mr. Brown commented on fee income and expenses, "Second quarter adjusted(1) fee income was below our expectations.  After a very strong first quarter, lower foreign exchange, swap income and investment banking fees led to a decline in total noninterest income compared to the linked quarter.  While results in these business lines can vary from quarter to quarter, we anticipate a rebound in the third quarter.  Conversely, adjusted(1) noninterest expenses were materially lower than the linked quarter, driven by lower commission expense, payroll taxes and acquisition-related synergies.  As of June 30th, virtually all of the expected Westfield cost reductions have been realized, while savings related to the BankFinancial acquisition will gradually phase in over the course of the third quarter with full synergies expected by quarter-end."

Mr. Brown commented on asset quality and capital, "Asset quality was stable for the quarter with net charge-offs declining by 15 basis points to 0.20% of total loans.  Capital levels remain strong with tangible common equity increasing to 8.2% and tangible book value increasing 3% from the linked quarter to $16.64.  No shares were repurchased during the quarter as we focused on integrating recent acquisitions and preparing for the acquisition of Finward." 

Mr. Brown concluded, "The second quarter was another great quarter for our Company.  We achieved record earnings while successfully integrating two bank acquisitions and positioning the Company for continued success in the second half of the year.  Regarding the acquisitions, we are most pleased with how our newer associates have assimilated into the Company.  They remain deeply committed to serving their clients and communities, and their efforts have been instrumental in strong client retention levels.  We are thankful for their dedication, hard work and client-focused approach over the past year.  I am very proud of the work our teams have done throughout the integration process, and their efforts position us for success in our newly expanded markets."

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

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Finward Bancorp Acquisition

  • First Financial Bancorp. has agreed to acquire Finward Bancorp, the holding company for Peoples Bank, headquartered in Munster, Indiana
  • Strategically expands First Financial's presence in northwest Indiana and Chicago, with the addition of a low cost core deposit franchise and 24 locations 
  • Finward has approximately $2.0 billion in assets, $1.7 billion in deposits, $1.5 billion in loans and $412 million in assets under management
  • Transaction is expected to be approximately 5% accretive to First Financial's earnings per share

First Financial Bancorp. (Nasdaq: FFBC) and Finward Bancorp (Nasdaq: FNWD) jointly announced today that they have entered into an agreement by which First Financial will acquire Munster-based Finward in an all-stock transaction, further expanding First Financial's presence in the economically robust Chicagoland market with a strong core deposit franchise including 24 financial centers and a 116 year presence in the Northwest Indiana and Chicago markets. Combined with the 15 retail locations from First Financial's recent acquisition in the Chicagoland market, the Finward acquisition enhances First Financial's market presence and increases its pro forma deposits in the Chicago metropolitan statistical area by 75% to over $4 billion.

"The addition of Finward Bancorp and Peoples Bank is expected to strategically expand First Financial's ability to serve the consumers and businesses of the Chicagoland and Northwest Indiana markets.  We are excited to partner with a bank with a similar operating philosophy and strong credit culture," said Archie Brown, President and Chief Executive Officer of First Financial Bank. "We have built an impressive combination of retail and commercial banking services, wealth management services, and specialty banking solutions, complemented by our client-centered, community-focused business model, that offers an alternative to larger banks.  To demonstrate our further commitment to Chicago and Northwest Indiana, First Financial has committed to donate $500,000 to its Foundation for the benefit of local organizations in the communities served by Finward, in addition to the $1 million we donated to the Foundation when we entered the Chicago market with the completed acquisition of BankFinancial Corporation in January 2026."

Upon completion of the transaction, Finward's consumer, trust/wealth management and commercial credit lines of business will be incorporated into First Financial's respective business lines, and Peoples Bank employees will become First Financial associates.

"This partnership represents an exciting next chapter for our organization and the communities we serve," said Benjamin Bochnowski, Chief Executive Officer of Peoples Bank. "First Financial shares our deep commitment to customers, employees, shareholders, and the communities that have placed their trust in us for more than 100 years. Together, we are accelerating our common strategy to better serve the Chicagoland and Northwest Indiana markets. We are creating a stronger regional banking franchise with expanded capabilities, greater resources, and a sharper focus on delivering exceptional service. We are confident this partnership will create meaningful opportunities for our customers and employees, while preserving the community-centered values that have defined our organization for generations."

Through this addition, First Financial continues its recent period of growth, including the recent acquisitions of Westfield Bancorp in Northeast Ohio and BankFinancial Corporation in Chicago, and its commercial banking expansion into Chicago, Cleveland and Grand Rapids.  First Financial's Midwestern base includes Chicago, IL; Cincinnati, Dayton, Cleveland and Columbus, OH; Indianapolis, IN; and Louisville, KY.  The acquisition of Finward enhances First Financial's existing Chicagoland footprint that includes its commercial loan production office in Fulton Market; the Agile Premium Finance division in Lincolnshire, IL; and Bannockburn Capital Markets in downtown Chicago.  Additionally in the area, First Financial offers retail and business banking solutions in Northwest Indiana and Northeast Illinois.

Transaction Terms

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 $208 million, based on First Financial's closing stock price on July 20, 2026.  The transaction is expected to be approximately 5% accretive to First Financial's earnings per share, and First Financial's tangible book value per share ("TBV") at closing is estimated to be only slightly diluted (0.4% dilution) with an anticipated TBV earnback of 0.6 years.  The merger agreement has been unanimously approved by the Boards of Directors of First Financial and Finward.

The transaction is expected to close in the fourth quarter of 2026, subject to satisfaction of customary closing conditions, regulatory approvals and approval of Finward's shareholders.

Transaction Advisors 

Morgan Stanley & Co. LLC is serving as financial advisor to First Financial. Stephens Inc. is serving as financial advisor to Finward and rendered a fairness opinion to Finward's Board of Directors.  Squire Patton Boggs, (US) LLP is serving as legal counsel to First Financial. Barack Ferrazzano Kirschbaum & Nagelberg LLP is serving as legal counsel to Finward. 

Teleconference / Webcast Information

First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Wednesday, July 22, 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 657340574.  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.

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, (a) statements regarding First Financial Bancorp's (the "Company" or "First Financial") operations, 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 assumptions that underlie our forward-looking statements; and (b) statements regarding the proposed transaction, such as (i) statements regarding the outlook and expectations of First Financial and Finward Bancorp ("Finward"), respectively, with respect to the proposed transaction, (ii) the strategic benefits and financial benefits of the proposed transaction, including the expected impact of the proposed transactions on the combined First Financial's future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), (iii) the timing of the closing of the proposed transaction, and (iv) the ability to successfully integrate the combined businesses.  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 Finward 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.  Any reference to forward-looking statements by Finward herein is solely related to the proposed transaction.  Such risks, uncertainties and assumptions include, among others, the following:

Risks, uncertainties and assumptions regarding First Financial's operations

  • 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 the acquisition and/or integration of any acquired companies;
  • the possibility that any of the anticipated benefits of First Financial's prior or contemplated acquisitions will not be realized or will not be realized within the expected time period;
  • 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.

Risks, uncertainties and assumptions regarding the proposed transaction

  • the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement;
  • the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined First Financial or the expected benefits of the proposed transaction) and the possibility that the proposed transaction does not close when expected or at all because required regulatory approvals, the approval by Finward's shareholders, or other approvals and the other conditions to closing are not received or satisfied on a timely basis or at all;
  • the outcome of any legal proceedings that may be instituted against First Financial or Finward;
  • the possibility that the anticipated benefits of the proposed transaction, including anticipated synergies and strategic gains, are not realized when expected or at all, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which First Financial and Finward operate;
  • the possibility that the integration of the two companies may be more difficult, time-consuming or costly than expected;
  • the impact of purchase accounting with respect to the proposed transaction, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks;
  • the possibility that the proposed transaction may be more expensive or take longer to complete than anticipated, including as a result of unexpected factors or events;
  • the diversion of management's attention from ongoing business operations and opportunities;
  • potential adverse reactions of First Financial's or Finward's customers or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction;
  • a material adverse change in the financial condition of First Financial or Finward;
  • changes in First Financial's share price before closing;
  • risks relating to the potential dilutive effect of shares of First Financial's common stock to be issued in the proposed transaction;
  • general competitive, economic, political and market conditions;
  • the ability to retain key employees, management personnel and other associates of First Financial and Finward following announcement or consummation of the proposed transaction;
  • major catastrophes such as earthquakes, floods or other natural or human disasters, including infectious disease outbreaks; and
  • other factors that may affect future results of First Financial or Finward, including, among others, changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates; deposit flows; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board, the Ohio Division of Financial Institutions, the Indiana Department of Financial Institutions, and any other state or federal legislative and regulatory actions and reforms.

These factors are not necessarily all of the factors that could cause First Financial, Finward, or the combined company'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, Finward, or the combined company.

Although each of First Financial and Finward 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 or Finward (as related to the proposed transaction) 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 each of First Financial's and Finward'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 and Finward with the Securities Exchange Commission ("SEC"). The actual results anticipated for the proposed transaction or First Financial's operations may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on First Financial, Finward or each of their respective businesses or operations. Investors are cautioned not to rely too heavily on any such forward-looking statements. First Financial and Finward urge you to consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by First Financial and Finward. Forward-looking statements speak only as of the date they are made, and First Financial and Finward undertake 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.

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 about the Transaction and Where to Find It

In connection with the proposed transaction, First Financial intends to file with the SEC a Registration Statement on Form S-4 (the "Registration Statement") to register the shares of First Financial capital stock to be issued in connection with the proposed transaction. The Registration Statement will include 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 WHEN THEY BECOME AVAILABLE 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) when they are filed. 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 Solicitation

Finward and its directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the Merger. 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 Finward in the solicitation of proxies in respect of the Merger will be 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.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  As of June 30, 2026, the Company had $22.4 billion in assets, $13.7 billion in loans, $17.6 billion in deposits and $3.0 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 $4.6 billion in assets under management as of June 30, 2026.  The Company operated 151 full service banking centers as of June 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.

About Finward Bancorp 

Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 24 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp's common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank's products and services, and Finward Bancorp's investor relations. 

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

(Unaudited)
















Three Months Ended,


Six months ended,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


2026


2026


2025


2025


2025


2026


2025

RESULTS OF OPERATIONS














Net income

$       76,456


$       74,445


$       62,393


$       71,923


$       69,996


$     150,901


$     121,289

Net earnings per share - basic

$           0.74


$           0.72


$           0.65


$           0.76


$           0.74


$           1.45


$           1.28

Net earnings per share - diluted

$           0.73


$           0.71


$           0.64


$           0.75


$           0.73


$           1.44


$           1.27

Dividends declared per share

$           0.25


$           0.25


$           0.25


$           0.25


$           0.24


$           0.50


$           0.48















KEY FINANCIAL RATIOS














Return on average assets

1.37 %


1.34 %


1.22 %


1.54 %


1.52 %


1.36 %


1.33 %

Return on average shareholders' equity

10.39 %


10.24 %


9.18 %


11.08 %


11.16 %


10.32 %


9.83 %

Return on average tangible shareholders' equity (1)

17.95 %


17.78 %


16.27 %


19.11 %


19.61 %


17.87 %


17.44 %















Net interest margin

3.96 %


3.97 %


3.96 %


3.99 %


4.01 %


3.96 %


3.93 %

Net interest margin (fully tax equivalent) (1)(2)

3.98 %


3.99 %


3.98 %


4.02 %


4.05 %


3.98 %


3.96 %















Ending shareholders' equity as a percent of ending assets

13.31 %


12.91 %


13.11 %


14.18 %


13.73 %


13.31 %


13.73 %

Ending tangible shareholders' equity as a percent of:














Ending tangible assets (1)

8.24 %


7.87 %


7.79 %


8.87 %


8.40 %


8.24 %


8.40 %

Risk-weighted assets (1)

10.62 %


10.51 %


9.76 %


10.94 %


10.44 %


10.62 %


10.44 %















Average shareholders' equity as a percent of average assets

13.18 %


13.12 %


13.31 %


13.87 %


13.66 %


13.15 %


13.52 %

Average tangible shareholders' equity as a percent of
average tangible assets (1)

8.08 %


8.01 %


7.97 %


8.54 %


8.26 %


8.04 %


8.10 %















Book value per share

$         28.46


$         28.02


$         28.11


$         27.48


$         26.71


$         28.46


$         26.71

Tangible book value per share (1)

$         16.64


$         16.15


$         15.74


$         16.19


$         15.40


$         16.64


$         15.40















Common equity tier 1 ratio (3)

12.33 %


12.22 %


11.32 %


12.91 %


12.57 %


12.33 %


12.57 %

Tier 1 ratio (3)

12.61 %


12.50 %


11.60 %


13.23 %


12.89 %


12.61 %


12.89 %

Total capital ratio (3)

15.75 %


15.70 %


15.46 %


15.32 %


14.98 %


15.75 %


14.98 %

Leverage ratio (3)

9.66 %


9.39 %


9.53 %


10.50 %


10.28 %


9.66 %


10.28 %















AVERAGE BALANCE SHEET ITEMS














Loans (4)

$ 13,619,039


$ 14,028,324


$ 12,812,267


$ 11,806,065


$ 11,792,840


$ 13,822,551


$ 11,758,972

Investment securities

5,079,730


4,769,261


3,988,846


3,552,014


3,478,921


4,925,353


3,445,443

Interest-bearing deposits with other banks

605,647


596,094


647,347


610,074


542,815


600,897


579,112

  Total earning assets

$ 19,304,416


$ 19,393,679


$ 17,448,460


$ 15,968,153


$ 15,814,576


$ 19,348,801


$ 15,783,527

Total assets

$ 22,391,439


$ 22,459,721


$ 20,256,539


$ 18,566,188


$ 18,419,437


$ 22,425,392


$ 18,394,161

Noninterest-bearing deposits

$  3,811,391


$  3,745,002


$  3,436,709


$  3,124,277


$  3,143,081


$  3,778,380


$  3,117,203

Interest-bearing deposits

13,875,384


13,900,550


12,521,948


11,387,648


11,211,694


13,887,898


11,180,835

  Total deposits

$ 17,686,775


$ 17,645,552


$ 15,958,657


$ 14,511,925


$ 14,354,775


$ 17,666,278


$ 14,298,038

Borrowings

$     891,636


$  1,012,161


$     848,650


$     823,346


$     910,573


$     951,566


$     955,704

Shareholders' equity

$  2,951,237


$  2,947,585


$  2,695,581


$  2,575,203


$  2,515,747


$  2,949,421


$  2,486,926















CREDIT QUALITY RATIOS













Allowance to ending loans

1.38 %


1.36 %


1.39 %


1.38 %


1.34 %


1.38 %


1.34 %

Allowance to nonaccrual loans

197.51 %


182.73 %


183.18 %


213.18 %


206.08 %


197.51 %


206.08 %

Nonaccrual loans to total loans

0.70 %


0.75 %


0.76 %


0.65 %


0.65 %


0.70 %


0.65 %

Nonperforming assets to ending loans, plus OREO

0.70 %


0.75 %


0.76 %


0.65 %


0.65 %


0.70 %


0.65 %

Nonperforming assets to total assets

0.43 %


0.44 %


0.48 %


0.41 %


0.41 %


0.43 %


0.41 %

Classified assets to total assets

1.01 %


1.02 %


1.11 %


1.18 %


1.15 %


1.01 %


1.15 %

Net charge-offs to average loans (annualized)

0.20 %


0.35 %


0.27 %


0.18 %


0.21 %


0.27 %


0.28 %

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

(3) June 30, 2026 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)






Three months ended,


Six months ended,


June 30,


June 30,


2026


2025


% Change


2026


2025


% Change

Interest income












  Loans and leases, including fees

$       219,164


$       201,460


8.8 %


$       444,115


$       398,623


11.4 %

  Investment securities












     Taxable

53,904


36,243


48.7 %


103,395


70,644


46.4 %

     Tax-exempt

2,472


2,233


10.7 %


4,998


4,437


12.6 %

        Total investment securities interest

56,376


38,476


46.5 %


108,393


75,081


44.4 %

  Other earning assets

5,381


5,964


(9.8) %


10,831


12,615


(14.1) %

       Total interest income

280,921


245,900


14.2 %


563,339


486,319


15.8 %













Interest expense












  Deposits

79,250


75,484


5.0 %


158,985


154,125


3.2 %

  Short-term borrowings

4,997


6,393


(21.8) %


10,165


13,938


(27.1) %

  Long-term borrowings

6,297


5,754


9.4 %


14,202


10,691


32.8 %

      Total interest expense

90,544


87,631


3.3 %


183,352


178,754


2.6 %

      Net interest income

190,377


158,269


20.3 %


379,987


307,565


23.5 %

  Provision for credit losses-loans and leases

12,933


9,084


42.4 %


18,963


18,225


4.0 %

  Provision for credit losses-unfunded commitments

(4,743)


718


(760.6) %


(2,233)


277


(906.1) %

      Net interest income after provision for credit losses

182,187


148,467


22.7 %


363,257


289,063


25.7 %













Noninterest income












  Service charges on deposit accounts

8,896


7,766


14.6 %


17,909


15,229


17.6 %

  Wealth management fees

8,252


7,787


6.0 %


18,734


15,924


17.6 %

  Bankcard income

3,032


3,737


(18.9) %


6,612


7,047


(6.2) %

  Client derivative fees

1,443


1,674


(13.8) %


5,453


3,245


68.0 %

  Foreign exchange income

13,101


13,760


(4.8) %


29,414


26,304


11.8 %

  Leasing business income

22,750


20,797


9.4 %


44,358


39,500


12.3 %

  Net gains from sales of loans

6,658


6,687


(0.4) %


12,705


11,009


15.4 %

  Net gain (loss) on investment securities

(337)


243


(238.7) %


(1,597)


(9,706)


(83.5) %

  Gain on bargain purchase

3,189


0


100.0 %


12,081


0


100.0 %

  Other

6,807


5,612


21.3 %


10,028


10,594


(5.3) %

      Total noninterest income

73,791


68,063


8.4 %


155,697


119,146


30.7 %













Noninterest expenses












  Salaries and employee benefits

86,917


74,917


16.0 %


186,773


150,155


24.4 %

  Net occupancy

7,535


5,845


28.9 %


15,088


11,864


27.2 %

  Furniture and equipment

4,310


3,441


25.3 %


9,003


7,254


24.1 %

  Data processing

13,554


9,020


50.3 %


26,208


17,779


47.4 %

  Marketing

3,616


2,737


32.1 %


6,268


4,755


31.8 %

  Professional services

7,387


3,549


108.1 %


11,373


6,288


80.9 %

  Amortization of tax credit investments

669


111


502.7 %


1,338


223


500.0 %

  FDIC assessments

2,878


2,611


10.2 %


6,523


5,670


15.0 %

  Intangible amortization

6,229


2,358


164.2 %


12,490


4,717


164.8 %

  Leasing business expense

14,633


13,155


11.2 %


28,762


25,957


10.8 %

  Other

13,814


10,927


26.4 %


27,124


22,085


22.8 %

      Total noninterest expenses

161,542


128,671


25.5 %


330,950


256,747


28.9 %

Income before income taxes

94,436


87,859


7.5 %


188,004


151,462


24.1 %

Income tax expense

17,980


17,863


0.7 %


37,103


30,173


23.0 %

      Net income

$         76,456


$         69,996


9.2 %


$       150,901


$       121,289


24.4 %













ADDITIONAL DATA












Net earnings per share - basic

$             0.74


$             0.74




$             1.45


$             1.28



Net earnings per share - diluted

$             0.73


$             0.73




$             1.44


$             1.27



Dividends declared per share

$             0.25


$             0.24




$             0.50


$             0.48















Return on average assets

1.37 %


1.52 %




1.36 %


1.33 %



Return on average shareholders' equity

10.39 %


11.16 %




10.32 %


9.83 %















Interest income

$       280,921


$       245,900


14.2 %


$       563,339


$       486,319


15.8 %

Tax equivalent adjustment

1,161


1,246


(6.8) %


2,347


2,459


(4.6) %

   Interest income - tax equivalent

282,082


247,146


14.1 %


565,686


488,778


15.7 %

Interest expense

90,544


87,631


3.3 %


183,352


178,754


2.6 %

   Net interest income - tax equivalent

$       191,538


$       159,515


20.1 %


$       382,334


$       310,024


23.3 %













Net interest margin

3.96 %


4.01 %




3.96 %


3.93 %



Net interest margin (fully tax equivalent) (1)

3.98 %


4.05 %




3.98 %


3.96 %















Full-time equivalent employees

2,371


2,033









(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)










2026


Second


First


Year to


% Change


Quarter


Quarter


Date


Linked Qtr.

Interest income








  Loans and leases, including fees

$  219,164


$  224,951


$  444,115


(2.6) %

  Investment securities








     Taxable

53,904


49,491


103,395


8.9 %

     Tax-exempt

2,472


2,526


4,998


(2.1) %

        Total investment securities interest

56,376


52,017


108,393


8.4 %

  Other earning assets

5,381


5,450


10,831


(1.3) %

       Total interest income

280,921


282,418


563,339


(0.5) %









Interest expense








  Deposits

79,250


79,735


158,985


(0.6) %

  Short-term borrowings

4,997


5,168


10,165


(3.3) %

  Long-term borrowings

6,297


7,905


14,202


(20.3) %

      Total interest expense

90,544


92,808


183,352


(2.4) %

      Net interest income

190,377


189,610


379,987


0.4 %

  Provision for credit losses-loans and leases

12,933


6,030


18,963


114.5 %

  Provision for credit losses-unfunded commitments

(4,743)


2,510


(2,233)


(289.0) %

      Net interest income after provision for credit losses

182,187


181,070


363,257


0.6 %









Noninterest income








  Service charges on deposit accounts

8,896


9,013


17,909


(1.3) %

  Wealth management fees

8,252


10,482


18,734


(21.3) %

  Bankcard income

3,032


3,580


6,612


(15.3) %

  Client derivative fees

1,443


4,010


5,453


(64.0) %

  Foreign exchange income

13,101


16,313


29,414


(19.7) %

  Leasing business income

22,750


21,608


44,358


5.3 %

  Net gains from sales of loans

6,658


6,047


12,705


10.1 %

  Net gain (loss) on investment securities

(337)


(1,260)


(1,597)


(73.3) %

  Gain on bargain purchase

3,189


8,892


12,081


(64.1) %

  Other

6,807


3,221


10,028


111.3 %

      Total noninterest income

73,791


81,906


155,697


(9.9) %









Noninterest expenses








  Salaries and employee benefits

86,917


99,856


186,773


(13.0) %

  Net occupancy

7,535


7,553


15,088


(0.2) %

  Furniture and equipment

4,310


4,693


9,003


(8.2) %

  Data processing

13,554


12,654


26,208


7.1 %

  Marketing

3,616


2,652


6,268


36.3 %

  Professional services

7,387


3,986


11,373


85.3 %

  Amortization of tax credit investments

669


669


1,338


0.0 %

  FDIC assessments

2,878


3,645


6,523


(21.0) %

  Intangible amortization

6,229


6,261


12,490


(0.5) %

  Leasing business expense

14,633


14,129


28,762


3.6 %

  Other

13,814


13,310


27,124


3.8 %

      Total noninterest expenses

161,542


169,408


330,950


(4.6) %

Income before income taxes

94,436


93,568


188,004


0.9 %

Income tax expense

17,980


19,123


37,103


(6.0) %

      Net income

$    76,456


$    74,445


$  150,901


2.7 %









ADDITIONAL DATA








Net earnings per share - basic

$        0.74


$        0.72


$        1.45



Net earnings per share - diluted

$        0.73


$        0.71


$        1.44



Dividends declared per share

$        0.25


$        0.25


$        0.50











Return on average assets

1.37 %


1.34 %


1.36 %



Return on average shareholders' equity

10.39 %


10.24 %


10.32 %











Interest income

$  280,921


$  282,418


$  563,339


(0.5) %

Tax equivalent adjustment

1,161


1,186


2,347


(2.1) %

   Interest income - tax equivalent

282,082


283,604


565,686


(0.5) %

Interest expense

90,544


92,808


183,352


(2.4) %

   Net interest income - tax equivalent

$  191,538


$  190,796


$  382,334


0.4 %









Net interest margin

3.96 %


3.97 %


3.96 %



Net interest margin (fully tax equivalent) (1)

3.98 %


3.99 %


3.98 %











Full-time equivalent employees

2,371


2,319





(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)












2025


Fourth


Third


Second


First


Full


Quarter


Quarter


Quarter


Quarter


Year

Interest income










  Loans and leases, including fees

$  215,663


$  204,865


$  201,460


$  197,163


$  819,151

  Investment securities










     Taxable

40,971


36,421


36,243


34,401


148,036

     Tax-exempt

2,363


2,195


2,233


2,204


8,995

        Total investment securities interest

43,334


38,616


38,476


36,605


157,031

  Other earning assets

6,334


6,773


5,964


6,651


25,722

       Total interest income

265,331


250,254


245,900


240,419


1,001,904











Interest expense










  Deposits

78,861


77,766


75,484


78,641


310,752

  Short-term borrowings

4,925


5,979


6,393


7,545


24,842

  Long-term borrowings

7,550


6,023


5,754


4,937


24,264

      Total interest expense

91,336


89,768


87,631


91,123


359,858

      Net interest income

173,995


160,486


158,269


149,296


642,046

  Provision for credit losses-loans and leases

9,688


8,612


9,084


9,141


36,525

  Provision for credit losses-unfunded commitments

412


453


718


(441)


1,142

      Net interest income after provision for credit losses

163,895


151,421


148,467


140,596


604,379











Noninterest income










  Service charges on deposit accounts

8,308


7,829


7,766


7,463


31,366

  Wealth management fees

9,288


7,351


7,787


8,137


32,563

  Bankcard income

3,590


3,589


3,737


3,310


14,226

  Client derivative fees

2,681


1,876


1,674


1,571


7,802

  Foreign exchange income

22,696


16,666


13,760


12,544


65,666

  Leasing business income

19,523


20,997


20,797


18,703


80,020

  Net gains from sales of loans

7,041


6,835


6,687


4,322


24,885

  Net gain (loss) on investment securities

(12,576)


(42)


243


(9,949)


(22,324)

  Other

4,216


8,424


5,612


4,982


23,234

      Total noninterest income

64,767


73,525


68,063


51,083


257,438











Noninterest expenses










  Salaries and employee benefits

85,123


80,607


74,917


75,238


315,885

  Net occupancy

6,315


6,003


5,845


6,019


24,182

  Furniture and equipment

3,940


3,582


3,441


3,813


14,776

  Data processing

10,465


9,591


9,020


8,759


37,835

  Marketing

3,056


2,359


2,737


2,018


10,170

  Professional services

6,231


2,314


3,549


2,739


14,833

  Amortization of tax credit investments

800


112


111


112


1,135

  FDIC assessments

2,923


2,611


2,611


3,059


11,204

  Intangible amortization

3,927


2,359


2,358


2,359


11,003

  Leasing business expense

13,837


13,911


13,155


12,802


53,705

  Other

12,914


10,820


10,927


11,158


45,819

      Total noninterest expenses

149,531


134,269


128,671


128,076


540,547

Income before income taxes

79,131


90,677


87,859


63,603


321,270

Income tax expense

16,738


18,754


17,863


12,310


65,665

      Net income

$    62,393


$    71,923


$    69,996


$    51,293


$  255,605











ADDITIONAL DATA










Net earnings per share - basic

$        0.65


$        0.76


$        0.74


$        0.54


$         2.68

Net earnings per share - diluted

$        0.64


$        0.75


$        0.73


$        0.54


$         2.66

Dividends declared per share

$        0.25


$        0.25


$        0.24


$        0.24


$         0.98











Return on average assets

1.22 %


1.54 %


1.52 %


1.13 %


1.35 %

Return on average shareholders' equity

9.18 %


11.08 %


11.16 %


8.46 %


9.98 %











Interest income

$  265,331


$  250,254


$  245,900


$  240,419


$ 1,001,904

Tax equivalent adjustment

1,227


1,248


1,246


1,213


4,934

   Interest income - tax equivalent

266,558


251,502


247,146


241,632


1,006,838

Interest expense

91,336


89,768


87,631


91,123


359,858

   Net interest income - tax equivalent

$  175,222


$  161,734


$  159,515


$  150,509


$  646,980











Net interest margin

3.96 %


3.99 %


4.01 %


3.84 %


3.95 %

Net interest margin (fully tax equivalent) (1)

3.98 %


4.02 %


4.05 %


3.88 %


3.98 %











Full-time equivalent employees

2,164


1,986


2,033


2,021



(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)
















June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


% Change


% Change


2026


2026


2025


2025


2025


Linked Qtr.


Comp Qtr.

ASSETS














     Cash and due from banks

$       206,361


$       170,641


$       178,553


$       174,659


$       210,187


20.9 %


(1.8) %

     Interest-bearing deposits with other banks

579,194


1,032,259


597,338


565,080


570,173


(43.9) %


1.6 %

     Investment securities available-for-sale

4,733,713


4,953,023


3,971,932


3,422,595


3,386,562


(4.4) %


39.8 %

     Investment securities held-to-maturity

46,067


49,631


58,545


71,595


72,994


(7.2) %


(36.9) %

     Other investments

137,755


137,018


129,564


117,120


122,322


0.5 %


12.6 %

     Loans held for sale

33,125


18,280


16,953


21,466


26,504


81.2 %


25.0 %

     Loans and leases














       Commercial and industrial

4,842,347


4,693,786


4,632,241


3,838,630


3,927,771


3.2 %


23.3 %

       Lease financing

659,328


649,645


638,527


596,734


587,176


1.5 %


12.3 %

       Construction real estate

599,258


591,080


677,339


627,960


732,777


1.4 %


(18.2) %

       Commercial real estate

4,548,887


4,473,468


4,384,556


4,048,370


3,961,513


1.7 %


14.8 %

       Residential real estate

1,805,044


1,831,338


1,832,184


1,494,464


1,492,688


(1.4) %


20.9 %

       Home equity

1,058,175


1,026,839


1,005,204


935,975


903,299


3.1 %


17.1 %

       Installment

156,470


162,314


188,694


109,764


116,598


(3.6) %


34.2 %

       Credit card

65,405


66,371


65,325


62,654


64,374


(1.5) %


1.6 %

          Total loans

13,734,914


13,494,841


13,424,070


11,714,551


11,786,196


1.8 %


16.5 %

       Less:














          Allowance for credit losses

(189,912)


(183,716)


(186,487)


(161,916)


(158,522)


3.4 %


19.8 %

                Net loans

13,545,002


13,311,125


13,237,583


11,552,635


11,627,674


1.8 %


16.5 %

     Premises and equipment

229,763


228,384


204,760


198,251


197,741


0.6 %


16.2 %

     Operating leases

241,742


220,061


214,003


214,667


217,100


9.9 %


11.4 %

     Goodwill

1,099,936


1,099,543


1,099,524


1,007,656


1,007,656


0.0 %


9.2 %

     Other intangibles

140,705


145,927


118,832


73,797


75,458


(3.6) %


86.5 %

     Accrued interest and other assets

1,446,316


1,413,923


1,301,792


1,134,985


1,119,884


2.3 %


29.1 %

       Total Assets

$  22,439,679


$ 22,779,815


$  21,129,379


$ 18,554,506


$  18,634,255


(1.5) %


20.4 %















LIABILITIES














     Deposits














       Interest-bearing demand

$    3,804,301


$    3,658,155


$    3,360,613


$    2,983,132


$    3,057,232


4.0 %


24.4 %

       Savings

6,423,986


6,460,546


5,973,532


5,029,097


4,979,124


(0.6) %


29.0 %

       Time

3,650,043


3,817,268


3,622,227


3,293,707


3,201,711


(4.4) %


14.0 %

          Total interest-bearing deposits

13,878,330


13,935,969


12,956,372


11,305,936


11,238,067


(0.4) %


23.5 %

       Noninterest-bearing

3,704,899


3,982,753


3,465,470


3,127,512


3,131,926


(7.0) %


18.3 %

          Total deposits

17,583,229


17,918,722


16,421,842


14,433,448


14,369,993


(1.9) %


22.4 %

     FHLB short-term borrowings

570,000


550,000


675,000


550,000


680,000


3.6 %


(16.2) %

     Other

39,532


70,457


332


45,167


4,699


(43.9) %


741.3 %

          Total short-term borrowings

609,532


620,457


675,332


595,167


684,699


(1.8) %


(11.0) %

     Long-term debt

382,550


380,176


514,052


221,823


344,955


0.6 %


10.9 %

          Total borrowed funds

992,082


1,000,633


1,189,384


816,990


1,029,654


(0.9) %


(3.6) %

     Accrued interest and other liabilities

876,880


919,835


748,937


672,213


676,453


(4.7) %


29.6 %

       Total Liabilities

19,452,191


19,839,190


18,360,163


15,922,651


16,076,100


(2.0) %


21.0 %















SHAREHOLDERS' EQUITY














     Common stock

1,792,158


1,789,676


1,647,618


1,641,315


1,638,796


0.1 %


9.4 %

     Retained earnings

1,535,765


1,485,573


1,437,286


1,399,577


1,351,674


3.4 %


13.6 %

     Accumulated other comprehensive income (loss)

(223,720)


(217,430)


(189,942)


(223,000)


(246,384)


2.9 %


(9.2) %

     Treasury stock, at cost

(116,715)


(117,194)


(125,746)


(186,037)


(185,931)


(0.4) %


(37.2) %

       Total Shareholders' Equity

2,987,488


2,940,625


2,769,216


2,631,855


2,558,155


1.6 %


16.8 %

       Total Liabilities and Shareholders' Equity

$  22,439,679


$ 22,779,815


$  21,129,379


$ 18,554,506


$  18,634,255


(1.5) %


20.4 %

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)








Quarterly Averages


Year-to-Date Averages


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


2026


2026


2025


2025


2025


2026


2025

ASSETS














     Cash and due from banks

$       182,261


$       227,115


$       178,403


$       165,210


$            174,375


$       204,564


$       169,581

     Interest-bearing deposits with other banks

605,647


596,094


647,347


610,074


542,815


600,897


579,112

     Investment securities

5,079,730


4,769,261


3,988,846


3,552,014


3,478,921


4,925,353


3,445,443

     Loans held for sale

32,458


451,139


32,425


26,366


25,026


240,642


17,660

     Loans and leases














       Commercial and industrial

4,723,431


4,771,066


4,310,399


3,890,886


3,881,001


4,747,117


3,834,363

       Lease financing

646,520


630,204


617,518


592,510


581,091


638,407


583,094

       Construction real estate

583,146


643,270


679,884


711,011


784,028


613,042


790,528

       Commercial real estate

4,546,901


4,446,231


4,240,042


3,993,549


3,958,730


4,496,844


3,988,306

       Residential real estate

1,812,228


1,834,467


1,717,439


1,489,942


1,485,479


1,823,286


1,480,618

       Home equity

1,043,805


1,016,080


981,406


919,368


891,761


1,030,019


875,050

       Installment

158,760


166,979


164,013


114,058


117,724


162,847


122,432

       Credit card

71,790


68,888


69,141


68,375


68,000


70,347


66,921

          Total loans

13,586,581


13,577,185


12,779,842


11,779,699


11,767,814


13,581,909


11,741,312

       Less:














          Allowance for credit losses

(186,331)


(200,745)


(179,275)


(162,417)


(158,170)


(193,498)


(158,188)

                Net loans

13,400,250


13,376,440


12,600,567


11,617,282


11,609,644


13,388,411


11,583,124

     Premises and equipment

230,343


230,154


202,956


199,167


198,407


230,249


198,701

     Operating leases

234,460


215,318


211,091


217,404


212,684


224,942


208,953

     Goodwill

1,099,742


1,099,543


1,069,781


1,007,656


1,007,656


1,099,643


1,007,656

     Other intangibles

143,403


149,631


104,184


74,448


76,076


146,500


77,142

     Accrued interest and other assets

1,383,145


1,345,026


1,220,939


1,096,567


1,093,833


1,364,191


1,106,789

       Total Assets

$  22,391,439


$ 22,459,721


$  20,256,539


$  18,566,188


$       18,419,437


$  22,425,392


$  18,394,161















LIABILITIES














     Deposits














       Interest-bearing demand

$    3,762,177


$    3,626,103


$    3,276,425


$    3,036,296


$         3,066,986


$    3,694,516


$    3,078,691

       Savings

6,434,399


6,406,223


5,740,651


5,054,563


5,005,526


6,420,389


4,962,007

       Time

3,678,808


3,868,224


3,504,872


3,296,789


3,139,182


3,772,993


3,140,137

          Total interest-bearing deposits

13,875,384


13,900,550


12,521,948


11,387,648


11,211,694


13,887,898


11,180,835

       Noninterest-bearing

3,811,391


3,745,002


3,436,709


3,124,277


3,143,081


3,778,380


3,117,203

          Total deposits

17,686,775


17,645,552


15,958,657


14,511,925


14,354,775


17,666,278


14,298,038

     Federal funds purchased and securities sold














          under agreements to repurchase

3,351


16,278


2,283


12,434


4,780


9,779


3,425

     FHLB short-term borrowings

508,931


538,084


444,511


497,092


532,198


523,427


542,873

     Other

0


0


13,891


21,519


26,226


0


62,600

          Total short-term borrowings

512,282


554,362


460,685


531,045


563,204


533,206


608,898

     Long-term debt

379,354


457,799


387,965


292,301


347,369


418,360


346,806

       Total borrowed funds

891,636


1,012,161


848,650


823,346


910,573


951,566


955,704

     Accrued interest and other liabilities

861,791


854,423


753,651


655,714


638,342


858,127


653,493

       Total Liabilities

19,440,202


19,512,136


17,560,958


15,990,985


15,903,690


19,475,971


15,907,235















SHAREHOLDERS' EQUITY














     Common stock

1,790,690


1,795,255


1,644,923


1,639,986


1,637,782


1,792,960


1,639,390

     Retained earnings

1,499,207


1,448,012


1,406,388


1,369,069


1,322,168


1,473,751


1,302,344

     Accumulated other comprehensive loss

(221,515)


(173,065)


(209,767)


(247,746)


(257,873)


(197,424)


(266,423)

     Treasury stock, at cost

(117,145)


(122,617)


(145,963)


(186,106)


(186,330)


(119,866)


(188,385)

       Total Shareholders' Equity

2,951,237


2,947,585


2,695,581


2,575,203


2,515,747


2,949,421


2,486,926

       Total Liabilities and Shareholders' Equity

$  22,391,439


$ 22,459,721


$  20,256,539


$  18,566,188


$       18,419,437


$  22,425,392


$  18,394,161

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)








 Quarterly Averages


Year-to-Date Averages



June 30, 2026


March 31, 2026


June 30, 2025


June 30, 2026


June 30, 2025



Balance


Interest


Yield


Balance


Interest


Yield


Balance


Interest


Yield


Balance


Yield


Balance


Yield

Earning assets



























    Investments:



























      Investment securities


$  5,079,730


$  56,376


4.45 %


$  4,769,261


$  52,017


4.42 %


$  3,478,921


$  38,476


4.44 %


$  4,925,353


4.44 %


$  3,445,443


4.39 %

      Interest-bearing deposits with other banks


605,647


5,381


3.56 %


596,094


5,450


3.71 %


542,815


5,964


4.41 %


600,897


3.63 %


579,112


4.39 %

    Gross loans (1)


13,619,039


219,164


6.45 %


14,028,324


224,951


6.50 %


11,792,840


201,460


6.85 %


13,822,551


6.48 %


11,758,972


6.84 %

       Total earning assets


19,304,416


280,921


5.84 %


19,393,679


282,418


5.91 %


15,814,576


245,900


6.24 %


19,348,801


5.87 %


15,783,527


6.21 %




























Nonearning assets



























    Allowance for credit losses


(186,331)






(200,745)






(158,170)






(193,498)




(158,188)



    Cash and due from banks


182,261






227,115






174,375






204,564




169,581



    Accrued interest and other assets


3,091,093






3,039,672






2,588,656






3,065,525




2,599,241



       Total assets


$ 22,391,439






$ 22,459,721






$ 18,419,437






$ 22,425,392




$ 18,394,161






























Interest-bearing liabilities



























    Deposits:



























      Interest-bearing demand


$  3,762,177


$  14,288


1.52 %


$  3,626,103


$  13,281


1.49 %


$  3,066,986


$  14,139


1.85 %


$  3,694,516


1.50 %


$  3,078,691


1.92 %

      Savings


6,434,399


33,405


2.08 %


6,406,223


32,480


2.06 %


5,005,526


29,942


2.40 %


6,420,389


2.07 %


4,962,007


2.45 %

      Time


3,678,808


31,557


3.44 %


3,868,224


33,974


3.56 %


3,139,182


31,403


4.01 %


3,772,993


3.50 %


3,140,137


4.14 %

    Total interest-bearing deposits


13,875,384


79,250


2.29 %


13,900,550


79,735


2.33 %


11,211,694


75,484


2.70 %


13,887,898


2.31 %


11,180,835


2.78 %

    Borrowed funds



























      Short-term borrowings


512,282


4,997


3.91 %


554,362


5,168


3.78 %


563,204


6,393


4.55 %


533,206


3.84 %


608,898


4.62 %

      Long-term debt


379,354


6,297


6.66 %


457,799


7,905


7.00 %


347,369


5,754


6.64 %


418,360


6.85 %


346,806


6.22 %

        Total borrowed funds


891,636


11,294


5.08 %


1,012,161


13,073


5.24 %


910,573


12,147


5.35 %


951,566


5.16 %


955,704


5.20 %

       Total interest-bearing liabilities


14,767,020


90,544


2.46 %


14,912,711


92,808


2.52 %


12,122,267


87,631


2.90 %


14,839,464


2.49 %


12,136,539


2.97 %




























Noninterest-bearing liabilities



























    Noninterest-bearing demand deposits


3,811,391






3,745,002






3,143,081






3,778,380




3,117,203



    Other liabilities


861,791






854,423






638,342






858,127




653,493



    Shareholders' equity


2,951,237






2,947,585






2,515,747






2,949,421




2,486,926



       Total liabilities & shareholders' equity


$ 22,391,439






$ 22,459,721






$ 18,419,437






$ 22,425,392




$ 18,394,161






























Net interest income


$      190,377






$      189,610






$      158,269






$      379,987




$      307,565



Net interest spread






3.38 %






3.39 %






3.34 %




3.38 %




3.24 %

Net interest margin






3.96 %






3.97 %






4.01 %




3.96 %




3.93 %




























Tax equivalent adjustment






0.02 %






0.02 %






0.04 %




0.02 %




0.03 %

Net interest margin (fully tax equivalent)






3.98 %






3.99 %






4.05 %




3.98 %




3.96 %

(1) Loans held for sale and nonaccrual loans are included in gross loans.

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)

(Dollars in thousands)

(Unaudited)









































 Linked Qtr. Income Variance


 Comparable Qtr. Income Variance


Year-to-Date Income Variance



Rate


Volume


Total


Rate


Volume


Total


Rate


Volume


Total

Earning assets



















    Investment securities


$          332


$      4,027


$      4,359


$          134


$    17,766


$    17,900


$          743


$    32,569


$    33,312

    Interest-bearing deposits with other banks


(212)


143


(69)


(1,141)


558


(583)


(2,177)


393


(1,784)

    Gross loans (2)


(1,681)


(4,106)


(5,787)


(11,684)


29,388


17,704


(20,810)


66,302


45,492

       Total earning assets


(1,561)


64


(1,497)


(12,691)


47,712


35,021


(22,244)


99,264


77,020




















Interest-bearing liabilities



















    Total interest-bearing deposits


$     (1,214)


$          729


$        (485)


$  (11,448)


$    15,214


$      3,766


$  (26,130)


$    30,990


$      4,860

    Borrowed funds



















    Short-term borrowings


180


(351)


(171)


(899)


(497)


(1,396)


(2,330)


(1,443)


(3,773)

    Long-term debt


(389)


(1,219)


(1,608)


12


531


543


1,082


2,429


3,511

       Total borrowed funds


(209)


(1,570)


(1,779)


(887)


34


(853)


(1,248)


986


(262)

       Total interest-bearing liabilities


(1,423)


(841)


(2,264)


(12,335)


15,248


2,913


(27,378)


31,976


4,598

          Net interest income (1)


$        (138)


$          905


$          767


$        (356)


$    32,464


$    32,108


$      5,134


$    67,288


$    72,422

(1) Not tax equivalent.

(2) Loans held for sale and nonaccrual loans are included in gross loans.

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)


Three Months Ended,


Six months ended


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


June 30,


2026


2026


2025


2025


2025


2026


2025

ALLOWANCE FOR CREDIT LOSS ACTIVITY











Balance at beginning of period

$    183,716


$   186,487


$   161,916


$   158,522


$   155,482


$   186,487


$   156,791

Initial allowance on purchased loans

0


2,829


23,652


0


0


2,829


0

  Provision for credit losses

12,933


6,030


9,688


8,612


9,084


18,963


18,225

  Gross charge-offs














    Commercial and industrial

2,437


10,788


6,636


2,165


4,996


13,225


13,174

    Lease financing

1,314


43


918


298


606


1,357


2,060

    Construction real estate

0


0


0


245


0


0


0

    Commercial real estate

2,484


29


433


3,105


0


2,513


0

    Residential real estate

84


127


151


0


16


211


16

    Home equity

262


119


95


92


100


381


186

    Installment

1,034


1,058


1,197


1,194


1,120


2,092


2,441

    Credit card

704


496


729


577


489


1,200


963

      Total gross charge-offs

8,319


12,660


10,159


7,676


7,327


20,979


18,840

  Recoveries














    Commercial and industrial

463


100


264


202


290


563


485

    Lease financing

114


23


201


291


11


137


40

    Construction real estate

0


0


0


0


0


0


0

    Commercial real estate

8


28


5


1,138


70


36


94

    Residential real estate

18


30


13


58


42


48


66

    Home equity

157


116


117


94


74


273


218

    Installment

660


598


682


609


716


1,258


1,279

    Credit card

162


135


108


66


80


297


164

      Total recoveries

1,582


1,030


1,390


2,458


1,283


2,612


2,346

  Total net charge-offs

6,737


11,630


8,769


5,218


6,044


18,367


16,494

Ending allowance for credit losses

$    189,912


$   183,716


$   186,487


$   161,916


$   158,522


$   189,912


$   158,522















NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)











  Commercial and industrial

0.17 %


0.91 %


0.59 %


0.20 %


0.49 %


0.54 %


0.67 %

  Lease financing

0.74 %


0.01 %


0.46 %


0.00 %


0.41 %


0.39 %


0.70 %

  Construction real estate

0.00 %


0.00 %


0.00 %


0.14 %


0.00 %


0.00 %


0.00 %

  Commercial real estate

0.22 %


0.00 %


0.04 %


0.20 %


(0.01) %


0.11 %


0.00 %

  Residential real estate

0.01 %


0.02 %


0.03 %


(0.02) %


(0.01) %


0.02 %


(0.01) %

  Home equity

0.04 %


0.00 %


(0.01) %


0.00 %


0.01 %


0.02 %


(0.01) %

  Installment

0.94 %


1.12 %


1.25 %


2.03 %


1.38 %


1.03 %


1.91 %

  Credit card

3.03 %


2.13 %


3.56 %


2.97 %


2.41 %


2.59 %


2.41 %

     Total net charge-offs

0.20 %


0.35 %


0.27 %


0.18 %


0.21 %


0.27 %


0.28 %















COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS



  Nonaccrual loans














    Commercial and industrial

$      20,305


$     22,576


$     27,461


$     23,832


$     24,489


$     20,305


$     24,489

    Lease financing

7,558


5,857


5,660


5,885


6,243


7,558


6,243

    Construction real estate

698


715


1,120


1,120


1,365


698


1,365

    Commercial real estate

44,404


49,481


45,590


24,443


23,905


44,404


23,905

    Residential real estate

18,260


17,439


18,302


16,452


16,995


18,260


16,995

    Home equity

4,095


3,687


2,927


3,567


3,226


4,095


3,226

    Installment

832


786


748


652


701


832


701

      Total nonaccrual loans

96,152


100,541


101,808


75,951


76,924


96,152


76,924

  Other real estate owned (OREO)

174


238


184


111


204


174


204

     Total nonperforming assets

96,326


100,779


101,992


76,062


77,128


96,326


77,128

  Accruing loans past due 90 days or more

650


1,366


411


592


714


650


714

     Total underperforming assets

$      96,976


$   102,145


$   102,403


$     76,654


$     77,842


$     96,976


$     77,842

Total classified assets

$    226,826


$   232,368


$   235,451


$   218,794


$   214,346


$   226,826


$   214,346















CREDIT QUALITY RATIOS











Allowance for credit losses to














     Nonaccrual loans

197.51 %


182.73 %


183.18 %


213.18 %


206.08 %


197.51 %


206.08 %

     Total ending loans

1.38 %


1.36 %


1.39 %


1.38 %


1.34 %


1.38 %


1.34 %

Nonaccrual loans to total loans

0.70 %


0.75 %


0.76 %


0.65 %


0.65 %


0.70 %


0.65 %

Nonperforming assets to














     Ending loans, plus OREO

0.70 %


0.75 %


0.76 %


0.65 %


0.65 %


0.70 %


0.65 %

     Total assets

0.43 %


0.44 %


0.48 %


0.41 %


0.41 %


0.43 %


0.41 %

Classified assets to total assets

1.01 %


1.02 %


1.11 %


1.18 %


1.15 %


1.01 %


1.15 %

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)


Three Months Ended,


Six months ended,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


June 30,


2026


2026


2025


2025


2025


2026


2025

PER COMMON SHARE














Market Price














  High

$         33.90


$         31.16


$         26.98


$         26.79


$         25.19


$         33.90


$         29.04

  Low

$         28.06


$         25.09


$         23.26


$         23.55


$         22.05


$         25.09


$         22.05

  Close

$         33.83


$         27.88


$         25.02


$         25.25


$         24.26


$         33.83


$         24.26















Average shares outstanding - basic

103,938,322


103,705,269


96,724,148


94,889,341


94,860,428


103,822,439


94,753,700

Average shares outstanding - diluted

104,936,741


104,615,405


97,593,800


95,753,798


95,741,696


104,776,961


95,633,579

Ending shares outstanding

104,956,458


104,932,829


98,521,726


95,757,250


95,760,617


104,956,458


95,760,617















Total shareholders' equity

$  2,987,488


$  2,940,625


$  2,769,216


$  2,631,855


$  2,558,155


$  2,987,488


$  2,558,155















REGULATORY CAPITAL

Preliminary










Preliminary



Common equity tier 1 capital

$  2,029,668


$  1,970,561


$  1,798,266


$  1,828,843


$  1,776,038


$  2,029,668


$  1,776,038

Common equity tier 1 capital ratio

12.33 %


12.22 %


11.32 %


12.91 %


12.57 %


12.33 %


12.57 %

Tier 1 capital

$  2,075,286


$  2,016,070


$  1,843,672


$  1,874,191


$  1,821,316


$  2,075,286


$  1,821,316

Tier 1 ratio

12.61 %


12.50 %


11.60 %


13.23 %


12.89 %


12.61 %


12.89 %

Total capital

$  2,591,169


$  2,531,334


$  2,457,377


$  2,170,546


$  2,116,180


$  2,591,169


$  2,116,180

Total capital ratio

15.75 %


15.70 %


15.46 %


15.32 %


14.98 %


15.75 %


14.98 %

Total capital in excess of minimum requirement

$     863,256


$     837,959


$     788,889


$     683,018


$     632,563


$     863,256


$     632,563

Total risk-weighted assets

$ 16,456,311


$ 16,127,377


$ 15,890,363


$ 14,166,935


$ 14,129,683


$ 16,456,311


$ 14,129,683

Leverage ratio

9.66 %


9.39 %


9.53 %


10.50 %


10.28 %


9.66 %


10.28 %















OTHER CAPITAL RATIOS














Ending shareholders' equity to ending assets

13.31 %


12.91 %


13.11 %


14.18 %


13.73 %


13.31 %


13.73 %

Ending tangible shareholders' equity to ending tangible assets (1)

8.24 %


7.87 %


7.79 %


8.87 %


8.40 %


8.24 %


8.40 %

Average shareholders' equity to average assets

13.18 %


13.12 %


13.31 %


13.87 %


13.66 %


13.15 %


13.52 %

Average tangible shareholders' equity to average tangible assets (1)

8.08 %


8.01 %


7.97 %


8.54 %


8.26 %


8.04 %


8.10 %















REPURCHASE PROGRAM (2)














Shares repurchased

0


0


0


0


0


0


0

Average share repurchase price

N/A


N/A


N/A


N/A


N/A


N/A


N/A

Total cost of shares repurchased

N/A


N/A


N/A


N/A


N/A


N/A


N/A

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

(2) Represents share repurchases as part of publicly announced plans.


N/A = Not applicable

SOURCE First Financial Bancorp.

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