First Financial Bancorp Q2 adjusted EPS hits record on loan growth

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

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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)