First Financial (FFBC) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, April 24, 2026 astatine 11:43 AM CDT 30 min read

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Friday, April 24, 2026 astatine 8:30 a.m. ET

• President & Chief Executive Officer — Archie M. Brown

• Chief Financial Officer — James Michael Anderson

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Archie M. Brown: Thanks, Scott. Good morning, everyone, and convey you for joining america connected today's call. Yesterday afternoon, we announced our archetypal 4th results, and I americium precise pleased with our wide performance. The archetypal 4th was a engaged one, arsenic we closed the Bank Financial acquisition, completed the conversion of Westfield Bank, and wrapped up the merchantability of the Bank Financial multifamily indebtedness portfolio. Adjusted net per stock were 77¢, an adjusted instrumentality connected assets of 1.45%, and an adjusted instrumentality connected tangible communal equity of 19.2%. Adjusted net per stock accrued 22% compared to the archetypal 4th of past year, driven by robust nett involvement borderline and beardown interest income.

Our nett involvement borderline was resilient, contempt the Fed funds complaint chopped successful December, arsenic the expected diminution successful indebtedness yields was offset by a akin diminution successful deposit costs. Assuming nary short-term complaint reductions by the Fed, we expect the borderline to stay unchangeable successful the adjacent term. Loan balances accrued somewhat for the 4th owed to the Bank Financial acquisition. Excluding the Bank Financial portfolio, loans declined for the 4th arsenic seasonally beardown indebtedness accumulation was offset by extended payoff unit successful the ICRE portfolio. Compared to 2025, origination accrued astir 45%, and excluding Westfield and Bank Financial, originations were up by implicit 25%. Our anticipation for indebtedness maturation for 2026 has not materially changed.

Loan pipelines are precise healthy, and we expect beardown accumulation successful the 2nd quarter. We besides expect payoff enactment successful ICRE to attack much mean levels, starring to coagulated indebtedness maturation successful the 2nd quarter. Adjusted interest income was beardown for the quarter. Historically, interest income importantly dips aboriginal successful the year; however, we successfully combated this inclination successful the archetypal quarter. Adjusted noninterest income was $75 million, which was 24% higher than successful 2025 and lone a flimsy diminution from the linked quarter. These results were driven by grounds wealthiness absorption income, beardown lawsuit derivative income, and grounds leasing concern income.

Additionally, expenses were good controlled during the quarter, with full noninterest expenses coming successful good beneath our expectations and acquisition-related outgo savings exceeding our archetypal estimates. Net charge-offs were 35 ground points of full loans and were impacted by 1 ample commercialized relationship. Other plus prime indicators were stable, with nonperforming assets somewhat declining from the linked 4th to 44 ground points. While determination is surely much uncertainty successful the system owed to the interaction of the warfare successful Iran, our existent expectations are for plus prime to gradually amended passim the year, akin to our show successful 2025. Capital ratios are beardown and continued to ascent successful the archetypal quarter.