FFBC Stock Forecast & Price Target

First Financial Bancorp demonstrated solid growth, with loans increasing 1.8% sequentially to $11.8 billion, supported by broad-based demand across its commercial and real estate lending activities. The bank's core service areas also performed well, with a notable 15.2% increase in trust and wealth management revenues, contributing to an overall strong pre-tax, pre-provision net revenue (PPNR) that exceeded consensus estimates by over 10%. Additionally, the institution remains well-capitalized, showcasing a robust CET1 ratio of 12.16% and a healthy deposit base that grew by 2.7% from the previous quarter to $14.3 billion.

First Financial Bancorp experienced a decline in its net interest margin, which decreased by 14 basis points to 3.94%, highlighting ongoing pressure on profitability. The company's guidance indicates that near-term loan growth will likely be limited to low single-digit percentages, compounded by concerns over rising credit costs due to a potential economic downturn. Additionally, net interest income showed a slight decline of 0.7% from the previous quarter, reflecting challenges that could negatively impact future financial performance.