First Financial reports quarterly financials
CINCINNATI — First Financial Bancorp announced financial results for the third quarter 2016. For the three months ended September 30, the company reported net income of $22.9 million, or 37 cents per diluted common share.
These results compare to net income of $22.6 million, or 36 cents per diluted common share, for the second quarter of 2016 and $18.7 million, or 30 cents per diluted common share, for the third quarter of 2015. For the nine months ended September 30, First Financial had earnings per diluted common share of $1.05, compared to 89 cents for the same period in 2015.
Return on average assets for the third quarter of 2016 was 1.09 percent, while return on average tangible common equity was 14.08 percent. These compare to a return on average assets of 1.11 percent and return on average tangible common equity of 14.49 percent in the second quarter of 2016 and a return on average assets of 0.97 percent and a return on average tangible common equity of 12.33 percent in the third quarter of 2015.
Third quarter highlights include:
- Loans increased $88.3 million, or 6.2 percent on an annualized basis, from the linked quarter
- Stable net interest margin of 3.61 percent; 3.66 percent on a fully tax equivalent basis
- Provision expense declined $2.4 million consistent with stable credit quality
- Noninterest income included $0.4 million of gains on sales of investment securities
- Noninterest expense included $0.8 million of severance costs, $0.2 million of gains related to branch consolidation activities and a $0.2 million legal recovery
- Efficiency ratio of 59.6 percent
- Effective tax rate of 30.7 percent included seasonal adjustments
“We are extremely pleased with another quarter of solid results, which produced our 104th consecutive quarter of profitability, said First Financial CEO Claude Davis. “Solid demand in our metropolitan markets resulted in annualized loan growth of 6.2 percent for the quarter.
“Net interest margin remained stable and our third quarter results reflect continued discipline in managing expenses as well as a steady credit environment,” Davis added. “As we look to close 2016 on a positive note, we will focus on continuing the momentum generated through the first three quarters and delivering on our stated goals of top quartile performance and being a premier business bank.”