First Financial Bancorp (NASDAQ: FFBC) in the fourth quarter of FY 17 has reported the adjusted earnings per share of $0.45, beating the analysts’ estimates for the adjusted earnings per share of $0.40. The earnings grew due to the improved net interest margin, continued credit improvement and stable loan growth. Overall, in the fourth quarter, FFBC has reported net income of $24.8 million compared to $23.3 million in the fourth quarter of 2016.  For the full year 2017, FFBC had posted the earnings per diluted common share of $1.56 compared to $1.43 for the same period in 2016.

Moreover, the FFBC’s fourth-quarter results are affected due to the recently enacted tax reform legislation, the preliminary agreement to early terminate the FDIC-loss sharing agreements and the realization of a significant historic tax credit.  Further, FFBC has made a $3.0 million charitable contribution to the newly established First Financial Foundation during the fourth quarter. The company has continued to make steady progress in the integration efforts as FFBC is about to make the anticipated merger with MainSource Financial Group.

Additionally, in the fourth quarter, FFBC has posted 25 basis points increase to 3.75% on a GAAP basis, 3.82% rise on a fully tax equivalent basis. This is due to increased loan fees, strong execution of recent deposit strategies and favorable shifts in earning asset and funding mix. The noninterest expense has increased $28.5 million, or 52.3%, compared to the third quarter. The noninterest expense includes $11.3 million historic tax credit investment write-down, $8.4 million of merger-related expenses, $5.1 million impairment charge resulting from the preliminary agreement to early terminate FDIC loss sharing agreements and $3.0 million charitable contribution to the First Financial Foundation.

In addition, FFBC in the fourth quarter has posted the return on average assets for the fourth quarter of 2017 was 1.13% while return on average tangible common equity was 13.85%.  These compare to a return on average assets of 1.11% and a return on average tangible common equity of 14.19% in the fourth quarter of 2016.

Meanwhile, FFBC will raise the starting wage for all new and existing hourly associates to $15 an hour. The increase will affect 220 associates. The announcement has come due to the recently passed tax legislation that includes a reduction in corporate tax rates.