Executive Summary

Delivered solid Q3: diluted EPS $0.75 (adjusted $0.76), ROA 1.54%, NIM (FTE) 4.02%, and record total revenue $234.0M; record noninterest income $73.5M, strong credit (NCOs 0.18% annualized) and higher TCE (8.87%) .
Versus S&P Global consensus, EPS was a modest beat (+$0.01) while S&P-defined revenue missed (actual $224.8M vs $229.5M); company-reported “total revenue” was $234.0M, reflecting definitional differences between S&P and company reporting (see Estimates Context) . Q3 EPS consensus 0.75*, Revenue consensus $229.45M*; S&P actuals: EPS 0.76*, Revenue $224.83M*.
Outlook: management guided Q4 NIM (FTE) to 3.92–3.97% (including ~2 bp from Westfield), fee income $77–79M (FX $18–20M; leasing $21–23M), noninterest expense $142–144M (includes ~$8M from Westfield), credit costs similar to Q3, and mid‑single‑digit annualized loan growth ex‑Westfield .
Strategic catalysts: regulatory approval for Westfield (expected close Nov 1; subsequently announced), with BankFinancial targeted for early Q1’26; dividend maintained at $0.25 per share, underscoring capital strength .

What Went Well and What Went Wrong

What Went Well

Record fee income and diversified engines: “We achieved record revenue… driven by a robust net interest margin and record noninterest income… adjusted noninterest income representing 31% of total net revenue” (CEO) .
Margin resilience: NIM (FTE) 4.02% (down only 3 bp q/q) as asset yields were maintained and funding costs moderated; ROATCE a strong 19.11% .
Capital and book value accretion: Tangible book value per share rose to $16.19 (+5% q/q), TCE 8.87% (10.15% ex‑AOCI) .

What Went Wrong

Loan balances missed internal expectations: end‑of‑period loans fell $71.6M, driven by lower specialty production and a higher mix of construction originations that fund over time (management expects rebound in Q4) .
Slight margin compression and higher incentive comp: NIM (FTE) down 3 bp q/q; noninterest expenses +4.5% q/q due to incentives tied to record fee income .
Mixed vs Street: S&P-defined revenue below consensus (see Estimates Context), despite company-reported “record total revenue” .

Financial Results

Headline results vs prior periods and estimates

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total Net Revenue ($USD Millions)	$201.3 (NII $155.6 + Fee $45.7)	$200.4 (NII $149.3 + Fee $51.1)	$226.3 (company-reported)	$234.0 (company-reported)
Diluted EPS ($)	$0.55	$0.54	$0.73	$0.75 (Adj. $0.76)
NIM (FTE, %)	4.08%	3.88%	4.05%	4.02%
ROA (%)	1.17%	1.13%	1.52%	1.54%
Net Interest Income ($M)	$155.6	$149.3	$158.3	$160.5
Noninterest Income ($M)	$45.7	$51.1	$68.1	$73.5
Total Provision Expense ($M)	$10.6	$8.7	$9.8	$9.1
NCOs / Avg Loans (annualized)	0.25%	0.36%	0.21%	0.18%

Consensus vs actual (S&P Global)

Metric	Q3 2025 Consensus	Q3 2025 Actual (S&P)	Q3 2025 Company-Reported
EPS ($)	0.75*	0.76*	0.75 (Adj. 0.76)
Revenue ($M)	229.45*	224.83*	234.0

Values marked with * retrieved from S&P Global.

Noninterest income breakdown

Category ($USD Millions)	Q2 2025	Q3 2025
Service charges on deposit accounts	7.8	7.8
Wealth management fees	7.8	7.4
Bankcard income	3.7	3.6
Client derivative fees	1.7	1.9
Foreign exchange income	13.8	16.7
Leasing business income	20.8	21.0
Net gains from sales of loans	6.7	6.8
Other	5.6	8.4
Total noninterest income	68.1	73.5

Credit KPI snapshot

KPI	Q3 2024	Q2 2025	Q3 2025
NCOs / Avg Loans (annualized)	0.25%	0.21%	0.18%
NPAs / Total Assets	0.36%	0.41%	0.41%
ACL / Total Loans	1.37%	1.34%	1.38%
Allowance / Nonaccrual Loans	242.7%	206.1%	213.2%

Capital & book value

CET1 12.91%, Total capital 15.32%, TCE 8.87% (10.15% ex‑AOCI); Tangible book value/share $16.19 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
NIM (FTE)	Q4 2025	n/a	3.92% – 3.97% (incl. ~2 bp from Westfield)	New
Fee income	Q4 2025	n/a	$77 – $79M; FX $18 – $20M; Leasing $21 – $23M; ~$1M from Westfield	New
Noninterest expense	Q4 2025	n/a	$142 – $144M; includes ~$8M from Westfield	New
Credit costs	Q4 2025	n/a	Approximate Q3 levels	New
Loan growth (ex‑Westfield)	Q4 2025	n/a	Mid‑single‑digits annualized	New
Core deposits	Q4 2025	n/a	Increase; plus seasonal public funds inflow	New
Dividend	Ongoing	$0.25 last declared	$0.25 declared on Oct 28 for Dec 15 payment	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q1)	Current Period (Q3 2025)	Trend
Net interest margin trajectory	Q1: NIM (FTE) 3.88% and expected near-term expansion ; Q2: NIM (FTE) 4.05%, +17 bp q/q on lower funding costs and higher asset yields	4.02% (FTE), -3 bp q/q; guide to 3.92–3.97% in Q4 with 25 bp rate cuts and Westfield +2 bp	Slight compression near-term on rate cuts
Fee income engines	Q1: Adjusted fee $61.0M; seasonal decline in FX, record wealth mgmt; expect rebound in Q2	Record $73.5M; FX +21% q/q to $16.7M; leasing $21.0M; other +$2.8M	Strong, diversified; Q4 guide $77–79M
Loan growth	Q1: Loans stable; modest Q2 growth expected	EOP loans -$71.6M; healthy pipelines; expect mid‑single‑digit annualized growth in Q4	Reaccelerating in Q4
Deposit mix & costs	Q1: Modest seasonal average deposit decline ; Q2: avg deposits +$114M; public funds +$85M	Avg deposits +$157M; brokered +$166M; money markets +$106M; seasonal decline in public funds; mgmt took actions to cut deposit costs post‑rate cut	Liquidity supportive; deposit costs expected to ease
Credit costs & asset quality	Q1 NCOs 0.36% ; Q2 NCOs 0.21%	NCOs 0.18%; NPAs 0.41%; ACL 1.38%; Q4 credit costs ~Q3	Stable to modestly improving
M&A integration & synergies	Announced Westfield; integration underway	Westfield approved, expected Nov 1 close; BankFinancial eyeing Q1’26; cost saves in mid‑’26; guide includes Westfield impacts	Near-term integration, synergy capture in 2026

Management Commentary

“We achieved record revenue in the third quarter driven by a robust net interest margin and record noninterest income. We have successfully maintained asset yields, while moderating our funding costs…” — Archie Brown, CEO .
“Third quarter fee income was another record, led by our leasing and foreign exchange businesses… Non-interest expenses increased from the linked quarter due to an increase in incentive compensation, which is tied to fee income.” — Jamie Anderson, CFO .
“Excluding Westfield, we expect loan growth to be in the mid-single digits… We expect [Q4] NIM to be in a range between 3.92% and 3.97%… fee income to be between $77M and $79M… non-interest expense… $142M to $144M.” — CEO (Outlook) .

Q&A Highlights

NDFI exposure: ~$434M diversified portfolio anchored in high‑IG credits; REITs ~$304M across 46 notes; securitizations ~$73M with S&P‑methodology structures; no adversely rated credits (Chief Credit Officer) .
Margin sensitivity: ~5 bp NIM pressure per 25 bp Fed cut; Q4 margin starts ~3.90% legacy, with purchase accounting from Westfield mitigating some pressure (CFO) .
Growth drivers: Expect Q4 growth led by Commercial and Summit; CRE modest growth; Oak Street under payoff pressure (CEO) .
Deposit competition and costs: Took decisive actions post‑rate cut; expect deposit costs to decline in Q4; BankFinancial’s lower funding cost profile supportive longer term (CEO/CFO) .
Fee outlook: Bannockburn (FX) expected to peak in Q4; do not annualize; 2026 run‑rate ~$65–70M for FX business (CFO) .
Capital & buybacks: TCE to dip ~120 bp on Westfield close (all‑cash); reassess buybacks in 2–3 quarters; consider if trading ≤1.5x TBV (CFO) .
Deposit seasonality: Public funds typically add ~$150–200M in May/Nov and reverse next quarter (CFO) .

Estimates Context

S&P Global consensus for Q3 2025: EPS $0.75* (actual $0.76*), Revenue $229.45M* (S&P‑defined actual $224.83M*). Company-reported “record total revenue” was $234.0M, reflecting a different revenue definition (company “net revenue” = NII + noninterest income) .
Q4 2025 S&P consensus: EPS ~$0.787*, Revenue ~$249.0M*.
Values marked with * retrieved from S&P Global.

Implication: modest EPS beat; revenue miss on S&P’s definition. Given management’s Q4 guide (NIM drift lower, higher fee income), Street estimates for mix (net interest vs fees) may need recalibration towards stronger fee contribution .

Key Takeaways for Investors

Quality quarter with diversified engines: resilient 4.02% NIM and record fees led to $234M total revenue and $0.75 EPS, with strong ROA/ROATCE and stable credit—supportive for comp multiples .
Mix shift tailwind: management guides higher Q4 fees ($77–79M) and stable credit costs; traders should watch FX and leasing cadence as key swing factors .
Near‑term NIM pressure manageable: ~5 bp per 25 bp cut offset by Westfield purchase accounting; deposit cost actions and seasonal inflows help fund loan growth .
Loan growth set to reaccelerate in Q4 after a modest Q3 dip; commercial and Summit are primary drivers; watch Oak Street payoff dynamics .
Capital intact despite M&A: CET1 12.91% and TBV accretion continue; buybacks could re‑enter the conversation post‑integration if valuation ≤1.5x TBV (monitor) .
Corporate actions: Westfield closed early Q4 per plan, BankFinancial targeted Q1’26; synergy realization modeled mid‑’26—medium‑term earnings uplift story .
Dividend maintained at $0.25 per share (4Q payment 12/15), signaling confidence in capital and earnings durability .

Citations:
Press release and financials: **[708955_20251023CL04349:0]** **[708955_20251023CL04349:1]** **[708955_20251023CL04349:5]** **[708955_20251023CL04349:6]** **[708955_20251023CL04349:7]** **[708955_20251023CL04349:8]** **[708955_20251023CL04349:9]** **[708955_20251023CL04349:10]** **[708955_20251023CL04349:11]** **[708955_20251023CL04349:16]** **[708955_20251023CL04349:17]** 
8‑K and slide guidance: **[708955_0000708955-25-000097_a8k3q25earningsreleaseex991.htm:1]** **[708955_0000708955-25-000097_a8k3q25earningsreleaseex991.htm:11]** **[708955_0000708955-25-000097_a8k3q25earningsreleaseex991.htm:14]** **[708955_0000708955-25-000097_a8k3q25earningsreleaseex991.htm:24]** **[708955_0000708955-25-000097_exh992earningsrelease3q2.htm:6]**
Q2’25 press release: **[708955_20250724CL36176:0]** **[708955_20250724CL36176:5]** **[708955_20250724CL36176:6]** **[708955_20250724CL36176:7]** **[708955_20250724CL36176:8]** **[708955_20250724CL36176:11]**
Q1’25 press release: **[708955_20250424CL70976:0]** **[708955_20250424CL70976:1]** **[708955_20250424CL70976:6]** **[708955_20250424CL70976:8]** **[708955_20250424CL70976:14]**
Dividend PR: **[708955_20251028CL09313:0]**
Earnings call transcript: **[0000708955_2202107_2]** **[0000708955_2202107_3]** **[0000708955_2202107_4]** **[0000708955_2202107_5]** **[0000708955_2202107_6]** **[0000708955_2202107_7]** **[0000708955_2202107_8]** **[0000708955_2202107_9]**
S&P Global estimates: Values marked with * retrieved from S&P Global.

FIRST FINANCIAL BANCORP /OH/ (FFBC)·Q3 2025 Earnings Summary