First Financial Bancorp reports Q4 adjusted EPS 71c, consensus 65c

Reports Q4 net interest margin of 3.91%, or 3.94% on a fully tax-equivalent basis, representing a 14 bp decline from third quarter, in line with initial expectations, and a 13 bp decline in cost of deposits and favorable shift in funding mix offset by 37 bp decline in loan yields. Tangible book value per share was $14.15 from $12.38 at previous quarter end. CEo Archie Brown commented, “I am very pleased with our Q4 performance. Adjusted EPS was 71c, leading to an adjusted return on assets of 1.47%, and an adjusted return on tangible common equity ratio of 19.90%. As expected, due to decreases in short term rates by the Fed, the decline in asset yields outpaced the decline in deposit costs, leading to a reduction in our net interest margin to 3.94%. Balance sheet trends were very strong for the quarter with loan growth exceeding 7% on an annualized basis and total deposits surging by approximately 16% on an annualized basis…Asset quality was relatively stable for the quarter. ..Net charge-offs were slightly elevated due to the resolution of three loans that have been longer term workouts. We believe that overall credit trends are improving and, as a result, we anticipate lower credit costs going forward.”