First Financial Bancorp (FFBC) AI Stock Analysis

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First Financial Bancorp

(NASDAQ:FFBC)

73Outperform

First Financial Bancorp's overall score reflects strong financial performance with revenue growth and stable equity but highlights the need to manage leverage and improve cash flow stability. The stock's technical indicators suggest bearish momentum, but the low P/E ratio and reasonable dividend yield provide valuation support. The positive outlook from the earnings call, despite some challenges, adds to the stock's appeal.

First Financial Bancorp (FFBC) vs. S&P 500 (SPY)

Market Cap

$2.29B

Dividend Yield4.07%

Average Volume (3M)524.07K

Price to Earnings (P/E)10.0

Beta (1Y)1.00

Revenue Growth8.05%

EPS Growth-3.31%

CountryUS

Employees2,021

SectorFinancial

Sector Strength85

IndustryBanks - Regional

Share Statistics

EPS (TTM)2.40

Shares Outstanding95,276,000

10 Day Avg. Volume604,307

30 Day Avg. Volume524,071

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.46

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.00

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$28.50

Price Target Upside18.75% Upside

Rating ConsensusHold

Number of Analyst Covering2

First Financial Bancorp Business Overview & Revenue Model

Company DescriptionFirst Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company accepts various deposit products, such as interest-bearing and noninterest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, or office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; and lease and equipment financing services. As of December 31, 2021, the company operated 139 full service banking centers, 29 of which are leased facilities. It operates 62 banking centers in Ohio, three banking centers in Illinois, 62 banking centers in Indiana, and 12 banking centers in Kentucky. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

How the Company Makes MoneyFirst Financial Bancorp generates revenue primarily through interest income from its lending activities and fees from its banking services. The company earns interest income by providing loans to individuals and businesses, including commercial loans, residential mortgages, and consumer loans. Additionally, it earns non-interest income through service charges on deposit accounts, fees from wealth management and investment services, and transaction-based fees on payment processing. The bank also engages in investment activities with its securities portfolio, contributing to its earnings. Significant partnerships with local businesses and community involvement enhance its customer base and drive further business opportunities.

First Financial Bancorp Financial Statement Overview

Summary

First Financial Bancorp demonstrates solid revenue growth and a stable balance sheet. However, the decrease in net income and cash flow volatility present areas for improvement. Maintaining profitability while managing leverage and enhancing cash flow stability will be crucial for sustaining financial health in the competitive banking industry.

Income Statement

Positive

First Financial Bancorp showcases strong revenue growth with a 5% increase from 2023 to 2024. The net profit margin slightly declined due to lower net income, but overall profitability remains robust. EBIT and EBITDA margins are not available for 2024, limiting comprehensive margin analysis. Despite this, the consistent revenue growth trajectory is a positive indicator.

Balance Sheet

Positive

The company's equity ratio improved to 13.1% in 2024, reflecting a stable financial position. However, the debt-to-equity ratio increased slightly, indicating higher leverage, which can pose risks if not managed properly. The return on equity (ROE) decreased, signaling potential efficiency issues in generating profit from equity.

Cash Flow

Positive

Operating cash flow decreased significantly from 2023 to 2024, impacting cash flow stability. The free cash flow to net income ratio remains positive, but the decrease in free cash flow growth signals potential challenges in cash generation. This volatility in cash flows could affect future financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
835.58M	796.67M	708.78M	623.62M	645.63M
	Gross Profit
835.58M	1.12B	708.78M	623.62M	645.63M
	EBIT
0.00	409.25M	335.21M	240.93M	184.41M
	EBITDA
0.00	356.39M	280.53M	283.01M	233.54M
	Net Income Common Stockholders
228.83M	255.86M	217.61M	205.16M	155.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.36B	191.46M	4.01B	4.64B	3.68B
	Total Assets
18.57B	17.53B	17.00B	16.33B	15.97B
	Total Debt
1.10B	1.28B	1.63B	654.83M	776.20M
	Net Debt
198.47M	275.91M	1.04B	219.99M	524.84M
	Total Liabilities
16.13B	15.26B	14.96B	14.07B	13.69B
	Stockholders Equity
2.44B	2.27B	2.04B	2.26B	2.28B
Cash Flow		Free Cash Flow
241.08M	462.83M	157.59M	375.13M	93.42M
	Operating Cash Flow
262.16M	486.97M	200.85M	390.46M	109.89M
	Investing Cash Flow
-1.00B	-701.26M	-883.11M	-512.33M	-1.20B
	Financing Cash Flow
699.08M	219.85M	669.73M	110.85M	1.13B

First Financial Bancorp Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price24.00

Price Trends

50DMA

24.38

Negative

100DMA

25.95

Negative

200DMA

25.85

Negative

Market Momentum

MACD

-0.22

Negative

RSI

54.08

Neutral

STOCH

57.24

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFBC, the sentiment is Neutral. The current price of 24 is above the 20-day moving average (MA) of 22.87, below the 50-day MA of 24.38, and below the 200-day MA of 25.85, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 57.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FFBC.

First Financial Bancorp Risk Analysis

First Financial Bancorp disclosed 42 risk factors in its most recent earnings report. First Financial Bancorp reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

First Financial Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRME	75 Outperform	$2.16B	10.43	9.16%	3.90%	1.42%	2.77%
PFS	73 Outperform	$2.18B	15.06	6.77%	5.75%	80.23%	-30.60%
FFBC	73 Outperform	$2.29B	9.98	9.58%	4.07%	8.05%	-3.31%
WAFD	71 Outperform	$2.00B	9.30	7.70%	3.68%	24.53%	0.16%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%
BANC	61 Neutral	$2.08B	23.79	4.33%	2.99%	121.04%	―
SFNC	58 Neutral	$2.37B	16.20	4.20%	5.65%	2.90%	-12.63%

* Financial Sector Average

Performance Comparison

FFBC

First Financial Bancorp

24.00

1.47

6.52%

FRME

First Merchants

37.03

3.31

9.82%

BANC

Banc of California

13.74

-0.64

-4.45%

PFS

Provident Financial Services

17.09

2.12

14.16%

SFNC

Simmons 1st Nat'l

19.24

2.03

11.80%

WAFD

Washington Federal

29.08

1.21

4.34%

First Financial Bancorp Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 0.00%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook overall, highlighting strong earnings, profitability, and asset quality improvements. The company also received notable recognition for its workplace and community efforts. However, there were challenges such as a decline in the net interest margin, fee income decrease, and loan growth challenges. The company remains optimistic moving forward, with expectations for improvement in upcoming quarters.

Q1-2025 Updates

Positive Updates

Strong Earnings and Profitability

Adjusted earnings per share was $0.63, with a return on assets of 1.33% and a return on tangible common equity of 17.8%.

Tangible Book Value and Capital Ratios

Tangible book value per share increased to $14.80, representing a 5% increase from the linked quarter and 18% over the last year. The tangible common equity ratio increased to 8.2%.

Exceptional Workplace and Community Recognition

First Financial received the Gallup Exceptional Workplace Award and an outstanding Community Reinvestment Act rating from the Federal Reserve.

Asset Quality Improvements

Net charge-offs declined four basis points from the linked quarter, and non-performing assets declined by 9.5%.

Efficiency and Expense Management

Non-interest expenses declined by 3.3% due to a decrease in incentive compensation and lower fraud losses.

Negative Updates

Net Interest Margin Decline

Net interest margin declined six basis points from the linked quarter to 3.88%.

Loan Growth Challenges

Loan balances were stable, with seasonal lower production and elevated prepayments in the ICRE portfolio impacting growth.

Fee Income Decrease

Fee income was $61 million, representing a decline from the linked quarter due to seasonal fluctuations and less foreign exchange income.

Credit Charge-offs

Net charge-offs for the quarter were 36 basis points on an annualized basis, primarily related to a single C&I relationship.

Company Guidance

During the First Financial Bancorp First Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance for the upcoming quarter. Adjusted earnings per share were reported at $0.63, with a return on assets of 1.33% and a return on tangible common equity of 17.8%. The net interest margin, although slightly declined, was strong at 3.88%, and is expected to expand to between 3.95% and 4.05% in the next quarter. Loan balances remained stable, but loan production was seasonally lower. Fee income stood at $61 million, with expectations of seasonal rebounds in the second quarter. Non-interest expenses decreased by 3.3%, contributing to improved efficiency. Asset quality also showed improvement, with net charge-offs declining by four basis points and non-performing assets down by 9.5%. The tangible common equity ratio increased to 8.2%, with a tangible book value per share rising to $14.80, marking an 18% increase over the last year. For the next quarter, the company anticipates stable credit costs, a slight increase in ACL coverage, and fee income between $64 million and $66 million.

First Financial Bancorp Corporate Events

Executive/Board ChangesShareholder Meetings

Cynthia Booth Announces Retirement from First Financial Bancorp

Neutral

Mar 28, 2025

On March 26, 2025, Cynthia Booth announced her retirement as a director of First Financial Bancorp, effective at the end of her current term. Her decision is not due to any disagreements with the company’s management or board, and she will not seek re-election at the upcoming annual meeting on May 27, 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.