NasdaqGS:FFBC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

First Financial Bancorp

Executive Summary

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has First Financial Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FFBC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FFBC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

10.2%

FFBC

6.3%

US Banks

-1.4%

US Market


1 Year Return

5.5%

FFBC

16.5%

US Banks

37.1%

US Market

Return vs Industry: FFBC underperformed the US Banks industry which returned 12.4% over the past year.

Return vs Market: FFBC underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

FFBCIndustryMarket
7 Day10.2%6.3%-1.4%
30 Day16.2%16.0%1.6%
90 Day36.1%27.2%7.3%
1 Year11.7%5.5%20.8%16.5%40.2%37.1%
3 Year-2.4%-12.9%16.4%6.5%62.5%52.1%
5 Year59.8%35.1%104.0%78.2%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is First Financial Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Financial Bancorp undervalued compared to its fair value and its price relative to the market?

14.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FFBC ($23.69) is trading above our estimate of fair value ($20.33)

Significantly Below Fair Value: FFBC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FFBC is poor value based on its PE Ratio (14.8x) compared to the US Banks industry average (12.4x).

PE vs Market: FFBC is good value based on its PE Ratio (14.8x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: FFBC is poor value based on its PEG Ratio (9x)


Price to Book Ratio

PB vs Industry: FFBC's PB Ratio (1x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is First Financial Bancorp forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFBC's forecast earnings growth (1.6% per year) is below the savings rate (2%).

Earnings vs Market: FFBC's earnings (1.6% per year) are forecast to grow slower than the US market (20.4% per year).

High Growth Earnings: FFBC's earnings are forecast to grow, but not significantly.

Revenue vs Market: FFBC's revenue (2.5% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: FFBC's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FFBC's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has First Financial Bancorp performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFBC has high quality earnings.

Growing Profit Margin: FFBC's current net profit margins (27.1%) are lower than last year (34%).


Past Earnings Growth Analysis

Earnings Trend: FFBC's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: FFBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FFBC had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Banks industry average (0.5%).


Return on Equity

High ROE: FFBC's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is First Financial Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FFBC's Assets to Equity ratio (7x) is low.

Allowance for Bad Loans: FFBC has a sufficient allowance for bad loans (200%).

Low Risk Liabilities: 89% of FFBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: FFBC has an appropriate level of Loans to Assets ratio (61%).

Low Risk Deposits: FFBC's Loans to Deposits ratio (80%) is appropriate.

Level of Bad Loans: FFBC has an appropriate level of bad loans (0.9%).


Next Steps

Dividend

What is First Financial Bancorp current dividend yield, its reliability and sustainability?

3.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FFBC's dividend (3.88%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: FFBC's dividend (3.88%) is in the top 25% of dividend payers in the US market (3.75%)


Stability and Growth of Payments

Stable Dividend: FFBC's dividend payments have been volatile in the past 10 years.

Growing Dividend: FFBC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.5%), FFBC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FFBC's dividends in 3 years are forecast to be covered by earnings (54.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Archie Brown (59 yo)

2.83yrs

Tenure

US$2,604,410

Compensation

Mr. Archie M. Brown, Jr., has been President, Chief Executive Officer and Director of First Financial Bancorp and First Financial Bank since April 1, 2018. Previously, he served as the President and Chief ...


CEO Compensation Analysis

Compensation vs Market: Archie's total compensation ($USD2.60M) is about average for companies of similar size in the US market ($USD3.68M).

Compensation vs Earnings: Archie's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Archie Brown
President2.83yrsUS$2.60m0.20%
$ 4.6m
James Anderson
Executive VP & CFO2.83yrsUS$910.23k0.086%
$ 2.0m
John Gavigan
Executive VP & COOno dataUS$842.89k0.044%
$ 1.0m
Karen Woods
Executive VPno dataUS$853.40k0.038%
$ 867.4k
Scott Crawley
Corporate Controller & Principal Accounting Officer4.08yrsno data0.011%
$ 246.8k
Linda Novitski
Interim CTO15.17yrsno datano data
Amanda Neeley
Executive VP1.08yrsno data0.020%
$ 453.1k
Brendan Burns
Head of Small Business Credit Functionno datano datano data
Thomas Saelinger
Market President of Northern Kentuckyno datano datano data
George Brooks
Market President of Northern Ohiono datano datano data
Steven Gochenour
Market President of South Central Indianano datano datano data
Matthew Burgess
Executive VP & Chief Internal Auditor9.33yrsno datano data

3.5yrs

Average Tenure

50yo

Average Age

Experienced Management: FFBC's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Archie Brown
President2.83yrsUS$2.60m0.20%
$ 4.6m
Claude Davis
Non-Executive Chairman of the Board2.83yrsUS$5.97m0.25%
$ 5.7m
Corinne Finnerty
Independent Director23.08yrsUS$101.25k0.066%
$ 1.5m
William Barron
Independent Director2.83yrsUS$101.25k0.83%
$ 19.2m
Maribeth Rahe
Independent Director10.75yrsUS$111.25k0.043%
$ 989.6k
William Kramer
Independent Director15.67yrsUS$111.25k0.036%
$ 840.6k
Vincent Berta
Lead Independent Directorno dataUS$111.25k0.026%
$ 603.9k
Susan Purkrabek-Knust
Independent Director15.83yrsUS$101.25k0.056%
$ 1.3m
J. Ach
Independent Director14.08yrsUS$126.25k0.030%
$ 700.8k
Thomas O'Brien
Independent Director2.83yrsUS$111.25k0.10%
$ 2.3m
Cynthia Booth
Independent Director10.17yrsUS$111.25k0.029%
$ 657.4k
John Neighbours
Independent Director5.08yrsUS$101.25k0.016%
$ 373.5k

10.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: FFBC's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FFBC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First Financial Bancorp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Financial Bancorp.
  • Ticker: FFBC
  • Exchange: NasdaqGS
  • Founded: 1863
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.307b
  • Shares outstanding: 97.37m
  • Website: https://www.bankatfirst.com

Number of Employees


Location

  • First Financial Bancorp.
  • 255 East Fifth Street
  • Suite 800
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1983
FI5DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1983

Biography

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Il...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:36
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.