Dj First Financial Bancorp, Inst Holders, 3Q 2025 (Ffbc)

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company Pathward Financial jumped 4%. Is now the time to buy Pathward Financial? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Lake City Bank jumped 4.2%. Is now the time to buy Lake City Bank? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Home Bancshares jumped 4.1%. Is now the time to buy Home Bancshares? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company First Financial Bancorp jumped 4.1%. Is now the time to buy First Financial Bancorp? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company FB Financial jumped 4.1%. Is now the time to buy FB Financial? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Lake City Bank (LKFN)

Lake City Bank’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 6.1% on the news that the stock pulled back in an apparent reversal of a rally from the previous session. The decline appears to be a reversal of gains from the previous trading session when the stock jumped 5.3%. That rally was part of a broader surge among regional banks, sparked by dovish comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Powell's remarks suggested that moderating inflation could lead to potential interest rate cuts, which eased concerns about prolonged high borrowing costs for banks. The pullback suggests that after the initial optimism, investors may be taking profits and reassessing the sector's near-term outlook following the sharp run-up.

Lake City Bank is down 12.5% since the beginning of the year, and at $58.88 per share, it is trading 22.4% below its 52-week high of $75.85 from November 2024. Investors who bought $1,000 worth of Lake City Bank’s shares 5 years ago would now be looking at an investment worth $1,094.

Let’s dig into the relative performance of First Financial Bancorp and its peers as we unravel the now-completed Q3 regional banks earnings season.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

First Financial Bancorp

Tracing its roots back to 1863 during the Civil War era, First Financial Bancorp is a bank holding company that provides commercial banking, lending, deposit services, and wealth management to individuals and businesses.

First Financial Bancorp reported revenues of $234 million, up 16.3% year on year. This print exceeded analysts’ expectations by 2.5%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a narrow beat of analysts’ EPS estimates.

Archie Brown, President and CEO, commented on third quarter results, "The third quarter of 2025 was another outstanding quarter for First Financial. Adjusted(1) net income was $72.6 million and adjusted(1) earnings per share were $0.76, which resulted in an adjusted(1) return on assets of 1.55% and an adjusted(1) return on tangible common equity of 19.3%."

Unsurprisingly, the stock is down 2.6% since reporting and currently trades at $23.65.

Is now the time to buy First Financial Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.5% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $66.99.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

As expected, the stock is down 20% since the results and currently trades at $61.62.

Read our full analysis of The Bancorp’s results here.

Axos Financial

Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.

Axos Financial reported revenues of $323.4 million, flat year on year. This number topped analysts’ expectations by 1.4%. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ tangible book value per share estimates.

The stock is flat since reporting and currently trades at $79.62.

Read our full, actionable report on Axos Financial here, it’s free for active Edge members.

QCR Holdings

With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.

QCR Holdings reported revenues of $101.5 million, up 4.3% year on year. This print surpassed analysts’ expectations by 11.8%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 6.8% since reporting and currently trades at $76.28.

Read our full, actionable report on QCR Holdings here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.