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

First Financial Bancorp.
Finward Bancorp

First Financial Bancorp.

FFBC

0.00

Finward Bancorp

FNWD

0.00

  • 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

 

Cision View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-second-quarter-2026-financial-results-quarterly-dividend-increase--acquisition-of-finward-bancorp-302831305.html

SOURCE First Financial Bancorp.