First Financial Bancorp.

Adjusted net income was a record $83.9 million, or $0.80 per share, versus an 8% increase in adjusted EPS year over year. Adjusted return on assets was 1.5% and adjusted return on tangible common equity was 19.7% to 20.0%. Net interest margin was 3.98%, down 1 basis point sequentially, with deposit costs down 6 basis points and asset yields down 7 basis points. Loans increased $240 million, or 7% annualized. Average deposit balances rose $41 million, and noninterest-bearing deposits were 21% of total balances. Adjusted fee income was $72 million, and provision expense was $8.2 million. Net charge-offs were 0.20% of loans, ACL coverage was 1.38%, and tangible common equity was 8.2% with tangible book value at $16.64. For third quarter guidance, management expects mid-single-digit annualized loan growth, low single-digit core deposit growth, NIM of 3.96% to 4.01%, fee income of $74 million to $77 million, and noninterest expense of $149 million to $152 million. Management also expects credit costs to approximate second-quarter levels and net charge-offs to run 25 to 30 basis points in the back half of the year.

Archie Brown said the quarter was strong and that the company is still benefiting from integration work on Westfield and BankFinancial while continuing to grow loans and improve efficiency. He emphasized that Finward is a strategic but incremental deal that expands the Chicago/Northwest Indiana footprint, adds a platform for talent and growth, and should not leave the company on the sidelines for future opportunities. His tone was constructive and upbeat, especially on market expansion and the company’s ability to keep executing through acquisitions.

Jamie Anderson highlighted a very strong core margin of 3.98%, helped by a 6-basis-point decline in deposit costs, while noting lower accretion income and slightly lower asset yields. He said ACL coverage increased to 1.38%, total allowance was $208 million, provision expense was $8.2 million, and net charge-offs improved to 20 basis points on an annualized basis. On capital, he pointed to tangible book value of $16.64, a TCE ratio of 8.2%, and said the board raised the common dividend to $0.26 per share while management is also planning to resume buybacks over time.

Analysts focused on capital deployment, M&A strategy, fee income variability, balance-sheet direction, and loan pricing. Management said it is not stepping aside from M&A, but near-term attention will be on closing and integrating Finward; on capital return, it described a longer-term framework of roughly one-third dividend, one-third organic/small-M&A retention, and one-third buybacks. On fees, management explained that foreign exchange and investment banking are inherently lumpy and should rebound in the third quarter, while on balance sheet and loan yields it said new production yields were roughly in line with payoffs overall, with specialty lines helping offset some core spread pressure.