NasdaqGS:FFBC

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.


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


Market Performance


7 Day Return

3.7%

FFBC

3.7%

US Banks

1.8%

US Market


1 Year Return

-11.2%

FFBC

1.9%

US Banks

7.3%

US Market

Return vs Industry: FFBC underperformed the US Banks industry which returned 1.9% over the past year.

Return vs Market: FFBC underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

FFBCIndustryMarket
7 Day3.7%3.7%1.8%
30 Day-2.2%0.2%-0.7%
90 Day0.8%2.5%0.06%
1 Year-8.0%-11.2%4.9%1.9%9.7%7.3%
3 Year23.6%13.4%51.7%41.2%46.3%36.9%
5 Year79.4%53.7%69.7%51.2%64.5%46.5%

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?

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FFBC ($24.36) is trading below our estimate of fair value ($27)

Significantly Undervalued: FFBC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FFBC is good value based on its PE Ratio (11.7x) compared to the Banks industry average (12.6x).

PE vs Market: FFBC is good value based on its PE Ratio (11.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: FFBC is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: FFBC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


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?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFBC's forecast earnings growth (7% per year) is above the savings rate (2.7%).

Earnings vs Market: FFBC's earnings (7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: FFBC's revenue (5.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FFBC's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if FFBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

24.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FFBC's earnings have grown significantly by 24.9% per year over the past 5 years.

Accelerating Growth: FFBC's earnings growth over the past year (75.2%) exceeds its 5-year average (24.9% per year).

Earnings vs Industry: FFBC earnings growth over the past year (75.2%) exceeded the Banks industry 30.5%.


Return on Equity

High ROE: FFBC's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: FFBC has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FFBC's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: FFBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: FFBC's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: FFBC's level of assets compared to its equity is low.

Allowance for Bad Loans: FFBC has a low allowance for bad loans.

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

Loan Level: FFBC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FFBC's loans are broadly funded by customer deposits.

Level of Bad Loans: FFBC has an appropriate level of bad loans (0.99%)


Next Steps

Dividend

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

3.78%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.5%markettop25%3.7%industryaverage3.0%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FFBC's dividend (3.78%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FFBC's dividend (3.78%) is in the top 25% of dividend payers in the US market (3.72%)

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 reasonably low payout ratio (40.2%), FFBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of First Financial Bancorp's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Archie Brown (58yo)

1.5yrs

Tenure

US$2,451,149

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Archie has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Archie's compensation with company performance.


Management Age and Tenure

1.9yrs

Average Tenure

51yo

Average Age

Experienced Management: FFBC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: FFBC's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: FFBC insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$12,48203 Oct 19
Maribeth Rahe
EntityIndividual
Shares510
Max PriceUS$24.48
BuyUS$8,73803 Oct 19
Richard Olszewski
EntityIndividual
Shares357
Max PriceUS$24.48
BuyUS$6,24103 Oct 19
Susan Purkrabek-Knust
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares255
Max PriceUS$24.48
BuyUS$6,24103 Oct 19
Cynthia Booth
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares255
Max PriceUS$24.48
BuyUS$6,24103 Oct 19
Vincent Berta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares255
Max PriceUS$24.48
BuyUS$3,10803 Oct 19
J. Ach
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares127
Max PriceUS$24.48
SellUS$675,01417 Sep 19
Claude Davis
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares26,657
Max PriceUS$25.32
SellUS$569,45916 Sep 19
Claude Davis
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares22,420
Max PriceUS$25.40
BuyUS$33,67528 Aug 19
Vincent Berta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$22.45
SellUS$128,05001 Aug 19
Richard Dennen
EntityIndividual
Shares5,000
Max PriceUS$25.61
BuyUS$6,24902 Jul 19
Susan Purkrabek-Knust
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares258
Max PriceUS$24.22
BuyUS$12,49802 Jul 19
Maribeth Rahe
EntityIndividual
Shares516
Max PriceUS$24.22
BuyUS$8,74302 Jul 19
Richard Olszewski
EntityIndividual
Shares361
Max PriceUS$24.22
BuyUS$6,24902 Jul 19
Cynthia Booth
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares258
Max PriceUS$24.22
BuyUS$6,24902 Jul 19
Vincent Berta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares258
Max PriceUS$24.22
BuyUS$3,12402 Jul 19
J. Ach
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares129
Max PriceUS$24.22
BuyUS$11,89111 Apr 19
Richard Olszewski
EntityIndividual
Shares493
Max PriceUS$24.12
BuyUS$6,19911 Apr 19
Corinne Finnerty
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares257
Max PriceUS$24.12
BuyUS$8,92411 Apr 19
Cynthia Booth
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares370
Max PriceUS$24.12
BuyUS$6,34411 Apr 19
Vincent Berta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares263
Max PriceUS$24.12
BuyUS$4,24511 Apr 19
William Kramer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares176
Max PriceUS$24.12
BuyUS$4,26911 Apr 19
J. Ach
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares177
Max PriceUS$24.12
BuyUS$15,41311 Apr 19
Maribeth Rahe
EntityIndividual
Shares639
Max PriceUS$24.12
BuyUS$7,79718 Mar 19
Richard Olszewski
EntityIndividual
Shares300
Max PriceUS$25.99
BuyUS$15,00511 Jan 19
Maribeth Rahe
EntityIndividual
Shares619
Max PriceUS$24.24
BuyUS$11,44111 Jan 19
Richard Olszewski
EntityIndividual
Shares472
Max PriceUS$24.24
BuyUS$8,60511 Jan 19
Susan Purkrabek-Knust
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares355
Max PriceUS$24.24
BuyUS$4,12111 Jan 19
William Kramer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares170
Max PriceUS$24.24
BuyUS$6,20511 Jan 19
Corinne Finnerty
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares256
Max PriceUS$24.24
BuyUS$8,72611 Jan 19
Cynthia Booth
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares360
Max PriceUS$24.24
BuyUS$6,30211 Jan 19
Vincent Berta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares260
Max PriceUS$24.24
BuyUS$4,09711 Jan 19
J. Ach
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares169
Max PriceUS$24.24
BuyUS$23,94019 Dec 18
Richard Olszewski
EntityIndividual
Shares1,000
Max PriceUS$23.94
BuyUS$37,03524 Oct 18
Vincent Berta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$24.69
BuyUS$113,77524 Oct 18
William Barron
EntityIndividual
Shares4,625
Max PriceUS$24.60
BuyUS$101,25124 Oct 18
Susan Purkrabek-Knust
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,086
Max PriceUS$24.78
BuyUS$12,15523 Oct 18
Richard Olszewski
EntityIndividual
Shares500
Max PriceUS$24.31

Ownership Breakdown


Management Team

  • Claude Davis (59yo)

    Executive Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$2.59m
  • Archie Brown (58yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$2.45m
  • Jamie Anderson (47yo)

    Executive VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$857.59k
  • Karen Woods (51yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$679.13k
  • Brendan Burns

    Head of Small Business Credit Function

    • Tenure: 0yrs
  • Linda Novitski

    Interim CTO

    • Tenure: 13.8yrs
  • John Gavigan (41yo)

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: US$769.11k
  • Mandy Neeley

    Executive VP and Chief Marketing & Strategy Officer

    • Tenure: 0yrs
  • Scott Crawley (38yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 2.8yrs
  • Bill Harrod (51yo)

    Executive VP & Chief Credit Officer

    • Tenure: 2yrs
    • Compensation: US$603.95k

Board Members

  • Claude Davis (59yo)

    Executive Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$2.59m
  • Corinne Finnerty (63yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$98.74k
  • Archie Brown (58yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$2.45m
  • William Kramer (59yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$110.99k
  • Vince Berta (60yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$95.00k
  • Susan Purkrabek-Knust (66yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$98.74k
  • J. Ach (71yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$123.37k
  • Kathie Bardwell (63yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$87.50k
  • Tom O'Brien (62yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$95.00k
  • Cynthia Booth (61yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$108.74k

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$2.559b
  • Shares outstanding: 105.03m
  • 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 Analysis2019/10/17 23:39
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.