First Financial Bancorp Boosts Dividend by 11.7% to $0.24 Per Share

Dividend Increase Details

First Financial Bancorp (FFBC) announced an 11.7% increase in its quarterly dividend, raising the payout from $0.215 to $0.24 per share. The new dividend will be paid on January 15, 2025, to shareholders of record as of December 31, 2024. This marks the 11th consecutive year of dividend growth for the bank holding company.

Financial Performance and Payout Ratio

The increased dividend represents an annualized payout of $0.96 per share. Based on the current stock price of approximately $28.50, the forward dividend yield is about 3.4%. The payout ratio is estimated at 35-40% of earnings, leaving room for future growth and reinvestment.

First Financial Bancorp reported net income of $78.2 million for the third quarter of 2024, up from $72.5 million in the same period last year. Earnings per share (EPS) came in at $0.68, compared to $0.63 in Q3 2023. The company's return on equity (ROE) stood at 12.5%.

Company Background

Headquartered in Cincinnati, Ohio, First Financial Bancorp operates 130 banking centers across Ohio, Indiana, Kentucky, and Michigan. The bank focuses on commercial and retail banking, as well as wealth management. With total assets of $17.2 billion, it is considered a mid-sized regional bank.

What It Means for Income Investors

First Financial Bancorp's consistent dividend growth and moderate payout ratio suggest a sustainable payout policy. The bank's solid earnings performance and regional market presence provide a foundation for continued dividend increases, though future hikes depend on economic conditions and regulatory factors.

Reporting based on: Barchart.com. Figures verified against market data where available.