First Financial: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 28, 2026, First Financial (NASDAQ:FFBC) announced record quarterly revenue driven by expanding fee streams and high interest margins. For long-term shareholders, the bank’s ability to generate steady non-interest income provides an important balance against shifting interest rates.

Three takeaways from management’s comments show how the business is building long-term value.

1. Record Fee Income Diversifies Earnings Beyond Lending

First Financial generates revenue from loan interest and fee-based services like wealth management or foreign exchange. Non-interest income reached $77.6 million during the quarter, which gives the bank reliable revenue that doesn’t depend on lending volume.

We delivered record third-quarter revenue of $273.9 million, driven by a strong net interest margin of 4.07% and record adjusted fee revenue of $77.6 million.
— Archie Brown, Chief Executive Officer

2. Floating-Rate Loans Provide Rapid Interest Income Benefits

A majority of the bank’s loan portfolio reprices quickly when rates move because loans tie to the Secured Overnight Financing Rate (SOFR), a benchmark interest rate for commercial loans. That rapid repricing expands the net interest margin, which measures lending profitability, ahead of rising deposit expenses.

So about 60% of our loan book moves with the short end of SOFR. So that is going to move right away or within 15-30 days as things reprice.
— Jamie Anderson, President and Chief Financial Officer

3. Pending Finward Merger Expands Scale and Regional Reach

First Financial received regulatory approval to acquire Finward, a regional banking company, with the deal expected to close on Jan. 1, 2027. The acquisition expands the bank’s operational footprint and adds future earning capacity despite initial tangible book value dilution.

We’re very pleased to have received regulatory approval for our acquisition of Finward and expect to close on January 1st, 2027, subject to state regulatory and Finward shareholder approvals.
— Archie Brown, Chief Executive Officer

Looking Ahead

Commercial loan demand remains active in major Midwest markets. The bank maintains a loan-to-deposit ratio of 78%, which measures loan volume against deposits, giving it flexibility to fund loans without raising deposit rates. Management tracks credit quality while maintaining a steady allowance for credit losses (ACL), the reserve set aside to absorb bad loans.