First Financial Bancorp. (FFBC): Business Model Canvas [Dec-2025 Updated]

You're looking to map out exactly how First Financial Bancorp. generates its returns, and frankly, the Q3 2025 results paint a clear picture of a well-executed, diversified regional bank strategy. Honestly, what we see is a community-focused model being amplified by strategic acquisitions, like the planned Westfield Bank deal, all while managing $14.4 billion in deposits. The proof is in the performance: a robust 4.02% Net Interest Margin and an impressive 19.3% Return on Tangible Common Equity, all built upon a foundation of $18.6 billion in total assets as of mid-2025. This Business Model Canvas distills the nine critical components-from their core commercial lending activity to their high-touch customer relationships-that are driving this performance; check out the breakdown below to see the engine room of First Financial Bancorp.

First Financial Bancorp. (FFBC) - Canvas Business Model: Key Partnerships

You're looking at how First Financial Bancorp. builds its network of essential external relationships to execute its strategy, especially as it closes out 2025 with significant M&A activity. These partnerships are critical for geographic expansion and maintaining the operational backbone of the bank.

Acquisition-Driven Expansion Partners

The most immediate and impactful partnerships are the acquisitions that fold new operations and client bases into First Financial Bancorp.'s structure. These deals are about integrating complementary capabilities and expanding market share in key Midwestern areas.

The acquisition of BankFinancial Corporation, announced in August 2025, is designed to boost the commercial banking footprint in the Chicago market. This all-stock transaction valued BankFinancial at approximately $142 million based on the August 8, 2025, stock price. BankFinancial brought a core deposit franchise with 18 full-service financial centers to the table. As of June 30, 2025, BankFinancial reported assets of about $1.49 billion and deposits of $1.26 billion. Upon closing, the pro forma total deposits for the combined entity were expected to reach $2.2 billion from this deal alone.

The deal to acquire Westfield Bancorp, Inc., the holding company for Westfield Bank, FSB, closed on November 3, 2025, in a cash and stock transaction valued around $325 million. This acquisition immediately brought Westfield Bank's retail locations, commercial, insurance agency banking, and private banking services into First Financial Bancorp.'s fold, specifically enhancing its Northeast Ohio presence. Following this closing, First Financial Bancorp. reported total assets of $20.6 billion, up from its $18.6 billion in assets as of September 30, 2025. The system conversion for Westfield Bank clients is planned for completion in March 2026.

Here's a quick look at the scale of these two major 2025 integrations:

Core Technology Vendors

First Financial Bancorp. relies on external technology providers to power its digital banking infrastructure, which is crucial for maintaining the omnichannel experience mentioned in industry reports. While specific, confirmed vendor names for First Financial Bancorp. are not publicly detailed in the provided data, the industry trend points toward partnerships with providers of modern Core Banking Solutions (CBS).

These partnerships must support key functions, including:

• Real-time transaction processing for immediate fund transfers.
• Centralized data management for accurate customer information.
• Omnichannel support across branches, mobile apps, and websites.

The bank's focus on vendor excellence is underscored by its Supplier Inclusion Program, which requires vendors to submit detailed documentation, including an overview of their product, service, technology, and system architecture, alongside risk assessments.

Correspondent Banks and Syndication Partners

For lending activities that extend beyond its core geographic footprint, particularly in its Commercial Finance business which lends into targeted industry verticals nationwide, First Financial Bancorp. engages with correspondent banks and syndication partners. These relationships help manage credit exposure and participate in larger loan opportunities.

The Chief Credit Officer participates in earnings calls, indicating active management of credit risk and participation in these external financial arrangements. The bank's adjusted uninsured deposits were $3.8 billion, or 27% of total deposits as of June 30, 2025, which necessitates strong liquidity management supported by these external funding and risk-sharing relationships.

Finance: draft 13-week cash view by Friday.

First Financial Bancorp. (FFBC) - Canvas Business Model: Key Activities

You're looking at the core engine of First Financial Bancorp. as of late 2025, focusing on the actions that drive its business.

Commercial and consumer credit underwriting and lending

First Financial Bancorp. maintains a significant loan portfolio, which as of September 30, 2025, stood at $11.7 billion. The loan balances saw a modest decline during the third quarter of 2025, specifically a decrease of $72 million. Credit quality monitoring shows annualized net charge-offs at 0.18% for the third quarter of 2025. Looking ahead, management projected a return to mid-single-digit loan growth on an annualized basis for the fourth quarter of 2025, excluding the impact of the Westfield acquisition. The Allowance for Credit Losses (ACL) coverage was 1.38% of total loans as of September 30, 2025.

Here are some key metrics related to the lending and credit activity:

Deposit gathering and liquidity management

Gathering and managing customer funds is central, with total deposits reported at $14.4 billion as of September 30, 2025. The average deposit balances showed positive momentum, increasing by $157 million in the third quarter of 2025, driven by growth in brokered Certificates of Deposit and money market accounts. The Net Interest Margin (NIM) on a fully tax-equivalent basis was a robust 4.02% for the third quarter of 2025. Guidance for the fourth quarter of 2025 projected core deposit increases.

Strategic M&A integration and footprint expansion

First Financial Bancorp. is actively executing on its Midwest growth strategy through acquisitions. Regulatory approval was secured for the acquisition of Westfield Bank, with a closing anticipated in early November 2025. Furthermore, an agreement was made to acquire BankFinancial Corporation (BFIN) in an all-stock transaction valued at approximately $142 million. This BFIN deal is set to add 18 retail locations, primarily in the Chicagoland market, and is expected to result in total pro forma deposits of $2.2 billion. The closing for the BankFinancial transaction was anticipated in the first quarter of 2026.

The integration activities involve incorporating BankFinancial's consumer, trust/wealth management, and selected commercial credit lines.

Wealth management and fiduciary services

Fee income generation is a key activity, with total fee income reaching a record $73.6 million in the third quarter of 2025. This record was supported by several sources, including the leasing business, which generated $21.0 million in income for Q3 2025. The Wealth Management line of business contributes to this, having posted record income in the first quarter of 2025. Management provided guidance for fourth quarter 2025 fee income in the range of $77 million and $79 million.

Here's how the fee-related income streams looked in Q3 2025:

First Financial Bancorp. (FFBC) - Canvas Business Model: Key Resources

You're looking at the core assets First Financial Bancorp. (FFBC) relies on to execute its business plan. Honestly, for a regional bank, the physical and financial scale is what you see first.

The foundation is definitely its balance sheet size. As of June 30, 2025, First Financial Bancorp. held $18.6 billion in total assets. That scale supports its operational footprint, which, as requested, included a network of 128 full-service banking centers as of that mid-year date. To be fair, by September 30, 2025, that network had slightly consolidated to 127 full-service banking centers across Ohio, Indiana, Kentucky, and Illinois. It's a physical presence that backs up the digital offerings.

Here's a quick look at the hard numbers supporting that resource base near the end of 2025:

Next up is the wealth management arm, the Yellow Cardinal Advisory Group. This division provides a crucial fee-income stream, complementing the core lending business. As of June 30, 2025, Yellow Cardinal Advisory Group managed approximately $3.8 billion in assets. That figure grew to about $4.0 billion in assets under management by September 30, 2025. This group offers a suite of services, including:

• Wealth planning and portfolio management
• Trust and estate services
• Brokerage and retirement plan services

They aim to provide tailored solutions for clients across personal and business needs. That's a significant pool of client assets to leverage.

Finally, the intangible but perhaps most critical resource is the experienced local management and the strong credit culture they maintain. You see this culture reflected in the asset quality metrics. For the third quarter of 2025, annualized net charge-offs were just 0.18% of total loans. Also, nonperforming assets remained flat at 0.41% of total assets. That discipline in underwriting is what keeps the balance sheet secure, even as they expand, like with the expected close of the Westfield acquisition on November 1st, 2025. They are definitely focused on prudent growth.

First Financial Bancorp. (FFBC) - Canvas Business Model: Value Propositions

First Financial Bancorp. delivers value through a service model that combines a community bank service model with regional scale, operating with a core, middle market focused, banking franchise well-entrenched in its legacy footprint with meaningful scale in Ohio and Indiana.

The value proposition is further enhanced by a diverse product suite: Commercial, Consumer, and Wealth services, which are delivered through six lines of business as of March 31, 2025: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. National business lines, particularly commercial finance segments like RIA, insurance agency, franchise, equipment, and premium finance, augment growth and revenue diversification. Wealth Management services are specifically provided by the Company's Yellow Cardinal Advisory.

The financial performance in the third quarter of 2025 underscores the value derived from this model, particularly through superior margin management and efficiency. The bank achieved a robust net interest margin (NIM) of 4.02% on a fully tax-equivalent (FTE) basis for Q3 2025. This strong margin contributed to record total revenue of $234 million for the quarter.

Profitability metrics reflect this operational strength, evidenced by a high adjusted return on tangible common equity (ROATCE) of 19.3% reported for the third quarter of 2025. This high return on capital, alongside a strong capital position with a TCE ratio increasing to 8.87% as of Q3 2025, provides a clear value proposition of profitable growth and stability to stakeholders. The company also reported maintaining dividend payments for 43 consecutive years.

Here's a quick look at key Q3 2025 performance metrics that support the value proposition:

The commitment to a community-focused, yet regionally scaled, approach is also reflected in its physical footprint and recent strategic moves. As of June 30, 2025, First Financial Bancorp. held $18.6 billion in assets. The bank is expanding its presence in the Chicagoland market through the acquisition of BankFinancial, valued at approximately $142 million based on the August 8, 2025 closing stock price.

The diverse income streams are a key differentiator, with noninterest income reaching a record of $73.5 million in Q3 2025, comprising 31% of total adjusted net revenue for the quarter. Key contributors to this fee income include:

• Leasing business income remaining strong at $21.0 million.
• Foreign exchange income increasing 21.1% to $16.7 million.
• Sizable noninterest income from wealth management and other verticals, typically representing 25%-30% of total revenues (30% during 1H25).

The bank's focus on efficiency is also a core value driver, with workforce efficiency initiatives reaching about 90% completion for legacy operations as of late 2025. Finance: draft 13-week cash view by Friday.

First Financial Bancorp. (FFBC) - Canvas Business Model: Customer Relationships

You're looking at how First Financial Bancorp. keeps its clients engaged as of late 2025. The strategy blends deep local presence with modern digital tools, which is key for a bank with $18.6 billion in total assets as of September 30, 2025.

Dedicated commercial relationship managers

For your commercial clients, the bank relies on dedicated expertise. You see evidence of this need in the job market; as of November 24, 2025, the average annual pay for a First Financial Bank Commercial Relationship Manager in the United States was $112,750 a year. That works out to about $54.21 an hour. Honestly, the demand is there, with 26+ open positions found for this role. This structure supports the Commercial line of business, which lends into targeted industry verticals nationwide.

Local, high-touch service at branch level

The physical footprint remains central to the high-touch service promise. First Financial Bancorp. operated 127 full-service banking centers as of September 30, 2025. These centers are spread across Ohio, Indiana, Kentucky, and Illinois. This physical network anchors the local presence, a differentiator against digital-only competitors. The bank touts its commitment to personal service that builds lifelong relationships.

Here's a quick look at the physical footprint evolution:

The bank achieved an "Outstanding" Community Reinvestment Act (CRA) rating, reflecting this commitment to local communities.

Self-service digital and mobile banking

The high-touch model is paired with tools that feel effortless. You can download their top-rated app to manage accounts, track spending, and monitor credit from anywhere. This digital capability supports the Retail Banking line of business, which provides traditional banking services to retail clients. The bank's overall Return on Average Assets (ROAA) for Q3 2025 was 1.54%, showing efficiency even while maintaining a physical presence.

Personalized wealth planning and advisory

The Wealth Management division is a significant relationship driver, providing wealth planning, portfolio management, trust and estate, brokerage, and retirement plan services. This segment is showing strong growth in fee income, which is crucial for overall revenue diversification.

The growth in assets under management (AUM) demonstrates client trust in this advisory service:

• Wealth Management AUM as of March 31, 2025: approximately $3.7 billion.
• Wealth Management AUM as of September 30, 2025: approximately $4.0 billion.
• Record wealth management fees were $8.1 million in Q1 2025.
• Total noninterest income hit a record $73.5 million in Q3 2025.

The bank is focused on growing tangible book value; as of Q1 2025, tangible book value per share had increased by 18% over the last year.

First Financial Bancorp. (FFBC) - Canvas Business Model: Channels

You're looking at how First Financial Bancorp. gets its services to clients as of late 2025. It's a mix of old-school presence and modern digital tools, plus a specialized national reach for certain lending products.

Physical branch network (Ohio, Indiana, Kentucky, Illinois)

First Financial Bank operates a network of physical locations across its core footprint. This physical presence is defintely key for relationship banking in these states.

Online and mobile banking platforms

The bank supports digital interaction channels for account management.

• Password reset functionality is available online or in-app.
• The bank's website for general information is www.bankatfirst.com.

Commercial Finance business lending nationwide

The Commercial Finance line of business, one of six primary business units, serves clients across the country, not just within the four-state branch footprint. This national reach helps diversify risk.

• Commercial Finance lends into targeted industry verticals on a nationwide basis.
• Total loans for the Company were $11.7 billion as of September 30, 2025.
• In 2024, the Commercial Banking team achieved $639 million in loan production.

ATM network and contact center support

Client support is routed through a centralized center, and automated services offer round-the-clock access.

First Financial Bancorp. (FFBC) - Canvas Business Model: Customer Segments

You're looking at the core client base for First Financial Bancorp. (FFBC) as of late 2025. Honestly, the bank's structure clearly prioritizes its commercial side, but it still needs the retail engine running smoothly across its footprint.

Small to mid-sized commercial businesses (core focus)

This group is defintely the backbone, as First Financial Bancorp. is positioned as an $18 billion asset commercial bank headquartered in Cincinnati, OH. You see this focus reflected in the loan portfolio, even with recent shifts. For instance, in the third quarter of 2025, the Commercial & Industrial (C&I) portfolio saw a decline in balances, contributing to the overall $72 million loan balance decrease for the quarter. Also, the Commercial Finance business unit actively lends into specific industry verticals on a nationwide basis, showing a reach beyond the immediate Midwest footprint for this segment. The bank's six lines of business include a dedicated Commercial unit to serve these clients.

Retail consumers in Midwest markets

Retail Banking serves individuals across the primary operating states: Ohio, Indiana, Kentucky, and Illinois. As of September 30, 2025, First Financial Bancorp. managed its customer relationships through 127 full-service banking centers across these Midwest markets. The deposit base, which funds these operations, stood at $14.4 billion as of September 30, 2025. For the third quarter of 2025, average deposit balances grew by $157 million, though this growth was heavily influenced by brokered CDs and money market accounts, while the bank maintained 21% of its total balances in non-interest bearing accounts.

Affluent individuals needing wealth management

The Wealth Management line of business targets affluent clients needing specialized services like wealth planning, portfolio management, and trust/estate services. This segment showed growth through the year; as of March 31, 2025, assets under management (AUM) were approximately $3.7 billion. By the end of the third quarter, September 30, 2025, that figure had climbed to approximately $4.0 billion. Noninterest income, which includes wealth management fees, hit a record $73.6 million in Q3 2025.

Commercial Real Estate (CRE) investors

CRE investors are served through the Investment Commercial Real Estate (ICRE) business unit. This segment is a key part of the loan book, which totaled $11.7 billion as of September 30, 2025. Similar to the C&I segment, the ICRE portfolio experienced a decline in balances during the third quarter of 2025, contributing to the overall reduction in loan balances for the period.

Here's a quick look at the scale of these segments based on the latest available figures:

The bank's overall strategy, especially with recent acquisitions like Westfield and BankFinancial mentioned in late 2025 commentary, suggests a continued push to integrate and find efficiencies across these established customer groups. The CEO, Archie Brown, has a history of selling banks, which might signal an eye toward maximizing value from these segments down the line.

First Financial Bancorp. (FFBC) - Canvas Business Model: Cost Structure

The cost structure for First Financial Bancorp. (FFBC) is heavily influenced by the cost of funding its balance sheet and the operational expenses required to maintain its network and technology platform. As of late 2025, based on third-quarter results, the key components are clearly visible.

Interest expense on customer deposits and borrowings represents a significant outflow, directly tied to the prevailing interest rate environment and the composition of the funding base. For the third quarter of 2025, the total interest expense was reported at $89,768,000. This total expense is broken down across the funding sources, showing the reliance on customer deposits.

The bank noted that total funding costs increased by 1 basis point from the linked quarter, even as asset yields declined by 2 basis points, resulting in a Net Interest Margin (NIM) of 3.99% (or 4.02% on a fully tax-equivalent basis) for the quarter. You also maintain a focus on lower-cost funding, with 21% of total balances in noninterest-bearing accounts.

Noninterest expenses for First Financial Bancorp. in the third quarter of 2025 were reported at $134.3 million, which was a 4.5% increase from the linked quarter. The adjusted noninterest expense, which excludes certain items like acquisition and efficiency costs, was $133.3 million. The forward guidance for the fourth quarter of 2025 anticipates noninterest expense to be between $142 million and $144 million, reflecting the expected impact from the Westfield acquisition.

Personnel costs for branch and corporate staff are a major driver within noninterest expenses. The increase in third-quarter noninterest expenses was explicitly tied to higher incentive compensation, which is linked to the record fee income performance. On the efficiency front, First Financial Bancorp. has successfully reduced its full-time equivalent (FTE) headcount by approximately 200 employees, representing a 9% reduction since the efficiency initiative started two years prior.

Regarding technology and data processing investments, while no specific dollar amount for Q3 2025 was explicitly itemized in the high-level summaries, the ongoing efficiency efforts and the need to integrate acquisitions like Westfield suggest continued investment in the operational backbone. The overall expense management focus is clear, as core expenses (excluding incentives tied to fee income) were flat compared to the second quarter.

• Full-time equivalent (FTE) headcount reduction since initiative start: 200 employees.
• Percentage reduction in FTE headcount: 9%.
• Noninterest expense increase from Q2 2025 to Q3 2025: 4.5%.
• Expected Q4 2025 Noninterest Expense range: $142 million to $144 million.

First Financial Bancorp. (FFBC) - Canvas Business Model: Revenue Streams

When you look at how First Financial Bancorp. generates its top line, it's a classic, dual-engine banking model, relying heavily on both traditional lending spreads and fee-based services. As of late 2025, the performance across these streams shows a bank effectively managing its core interest income while seeing significant upside from non-interest sources.

Net Interest Income (NII) from loans and securities

This is the bread and butter, the difference between what First Financial Bancorp. earns on its assets (loans and securities) and what it pays out on its liabilities (deposits and borrowings). For the third quarter of 2025, the reported Net Interest Income (NII) stood at $160.5 million. This was achieved while maintaining a robust Net Interest Margin (NIM) of 4.02% on a fully tax-equivalent basis for Q3 2025. This margin performance reflects management successfully keeping asset yields up while moderating funding costs. The tax-equivalent NII estimate for the same period was $161.73 million, according to some analyst consensus figures. You'll want to watch the Q4 2025 guidance, as management was targeting mid-single-digit loan growth to support this stream moving forward.

Noninterest Income (Q3 2025: $73.5 million)

This segment is where First Financial Bancorp. has been showing off its diversification. The third quarter of 2025 delivered a record noninterest income figure of $73.5 million. This represented about 31% of total adjusted net revenue for the quarter, which is a key differentiator for the firm. This record was driven by several specific, non-lending activities, which you can see broken down below. Honestly, this fee income is what's really boosting the total revenue picture.

Here's a quick look at the components driving that record noninterest income for Q3 2025:

• Leasing business income: $21.0 million
• Foreign exchange income: $16.7 million
• Trust service fees: $12.95 million
• Other noninterest income: Increased by $2.8 million

To give you a forward view, the guidance for Q4 2025 fee income was set between $77 million and $79 million.

Commercial Finance and leasing income

The leasing business is a clear contributor to the noninterest income strength. In Q3 2025, leasing business income was reported as strong at $21.0 million. Looking ahead, management guided Q4 2025 leasing business revenue to be in the range of $21 million to $23 million. This segment operates nationwide, targeting specific industry verticals, which is a different geographic footprint than its core branch network in Ohio, Indiana, Kentucky, and Illinois.

Wealth management and trust service fees

Fees from wealth management and trust services provide a stable, relationship-based revenue source. For the third quarter of 2025, trust fee income specifically reached $12.95 million, up from $11.69 million in the third quarter of 2024. This growth was attributed to an increase in assets under management. The firm offers services like Investment Management, Trust Management, and Estate Management, with fees generally based on the value of assets under management. While the firm doesn't have a stated minimum dollar amount for accounts, they generally advise against accounts smaller than $50,000 due to their fee arrangements.

To put the Q3 2025 noninterest income into context, here is a table showing the major components we have data for:

Finance: draft 13-week cash view by Friday.