First Financial Bancorp Q2 adjusted EPS hits record on loan growth

First Financial Bancorp.

First Financial Bancorp.

FFBC

0.00


Overview

  • U.S. regional bank's Q2 adjusted EPS hit record, reported EPS rose to $0.73

  • Company increased quarterly dividend and agreed to acquire Finward Bancorp in all-stock deal

  • Loan growth of $240 mln, or 7.1% annualized, supported quarterly results


Outlook

  • Company expects net interest margin to remain stable in near-term if rates do not change

  • First Financial anticipates healthy loan production and solid growth in third qtr

  • Company expects fee income to rebound in third qtr after second qtr decline

  • Finward Bancorp acquisition expected to be 5% accretive to earnings per share


Result Drivers

  • LOAN GROWTH AND ACQUISITIONS - Co said record adjusted EPS was driven by increases in earning assets from organic loan growth and recent acquisitions

  • STABLE NET INTEREST MARGIN - Net interest margin held steady as lower funding costs offset a decline in loan accretion income

  • LOWER NONINTEREST INCOME - Adjusted fee income was below expectations due to lower foreign exchange, swap income and investment banking fees


Company press release: ID:nPn1S5xZta


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$0.73

Q2 Net Income

$76.46 mln

Q2 Net Interest Income

$190.38 mln

Q2 Basic EPS

$0.74

Q2 CET1 Capital Ratio

12.33%

Q2 Credit Loss Allowance

$208.2 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for First Financial Bancorp is $36.00, about 1.5% above its July 20 closing price of $35.48

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • July 21 - Nicolet Bankshares Q2 adjusted EPS beats analyst estimates aided by MidWestOne acquisition

  • July 21 - Bridgewater Bancshares Q2 adjusted EPS meets estimates as net interest income rises on loan growth

  • July 21 - Bank First's Q2 net interest income rises, boosted by Centre acquisition


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