First Financial in Cincinnati is the latest bank to announce plans to address overdraft fees.
The $16 billion-asset company said in a press release that it will take a series of steps, beginning on June 1, to eliminate or reduce fees.
The company said it will eliminate nonsufficient funds fees when an item is returned unpaid and notification fees when an account remains overdrawn. Other fees will be reduced.
“We understand that there are times in life when an interruption in income or unanticipated expenses may present challenges,” Archie Brown, the company’s president and CEO, said in the release.
“We want to help clients rebound from these difficult moments and improve their financial futures, and [we] believe these broad changes to overdraft fees can help provide this assistance,” Brown added.
John Rodis, an analyst at Janney Montgomery Scott, wrote in a research note that the changes are expected to cut overdraft fees in half. He observed that First Financial generated about $14.6 million of overdraft fees in 2021, accounting for 2.3% of total revenue.