First Financial Bancorp Announces First Quarter 2022 Financial Results

Rhea-AI Summary

First Financial Bancorp (FFBC) reported Q1 2022 net income of $41.3 million, or $0.44 per diluted share, down from $46.9 million in Q4 2021. The return on average assets was 1.03% and 1.09% adjusted. The net interest margin was 3.17%, showing a slight decrease from the previous quarter. Noninterest income totaled $41.3 million, while expenses rose to $102.8 million. Notably, net charge-offs fell by 69.3%, indicating strong credit quality. Management expects improvements in loan trends and positive contributions from the Summit acquisition.

Positive

• Net charge-offs decreased 69.3%, reflecting strong credit quality.
• Provision recapture amounted to $5.8 million.
• Net interest margin increased by 12 basis points, benefiting from rising asset yields.
• Regulatory capital ratios remain strong with a total capital ratio of 13.97%.

Negative

• Net income of $41.3 million represents a decrease from $46.9 million in the prior quarter.
• Mortgage banking revenue declined by 40.4% from the previous quarter.
• Loan balances decreased by $46.7 million compared to the linked quarter.

• Earnings per diluted share of $0.44; $0.46 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.03%; 1.09% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis of 3.17%; 12 bp increase excluding loan fees and accretion
• Net charge-offs declined 69.3%; Provision recapture of $5.8 million

CINCINNATI, April 21, 2022 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2022. 

For the three months ended March 31, 2022, the Company reported net income of $41.3 million, or $0.44 per diluted common share.  These results compare to net income of $46.9 million, or $0.50 per diluted common share, for the fourth quarter of 2021 and $47.3 million, or $0.48 per diluted common share, for the first quarter of 2021. 

Return on average assets for the first quarter of 2022 was 1.03% while return on average tangible common equity was 14.93%⁽¹⁾.  These compare to returns on average assets of 1.16% and 1.20%, and returns on average tangible common equity of 15.11%⁽¹⁾ and 15.24%⁽¹⁾, in the fourth quarter of 2021 and the first quarter of 2021, respectively.

First quarter 2022 highlights include:

• Loan balances flat when compared to linked quarter², excluding impact of PPP
• Loan balances decreased $46.7 million compared to the linked quarter; PPP loan balances decreased $34.4 million
• Net interest margin of 3.17% on a fully tax-equivalent basis⁽¹⁾, exceeded expectations
• 6 basis point decrease to 3.17% from 3.23% in the linked quarter driven by PPP forgiveness and lower loan fees, which offset increase in asset yields during the period
• 12 basis point increase excluding loan fees and accretion
• Noninterest income of $41.3 million, or $41.5 million as adjusted⁽¹⁾
• Leasing business income of $6.1 million
• Wealth management fees remained strong at $6.1 million
• Foreign exchange income of $10.2 million; decline from record fourth quarter
• Mortgage banking revenue declined $2.6 million, or 40.4% from fourth quarter
• Noninterest expenses of $102.8 million, or $100.0 million as adjusted⁽¹⁾
• $0.3 million of acquisition related costs
• $2.5 million of other costs not expected to recur such as severance and branch consolidation costs
• Adjustments⁽¹⁾ include:
• Increase in expenses driven by $8.6 million of Summit expenses, higher healthcare costs and elevated payroll taxes
• Efficiency ratio of 69.6%; 67.7% as adjusted⁽¹⁾

 

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) The consolidated balance sheets at March 31, 2022 and December 31, 2021 include assets acquired and liabilities assumed in the Summit Financial transaction.  The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available.

 

• Total Allowance for Credit Losses of $137.3 million; Total quarterly provision recapture of $5.8 million
• Loans and leases - ACL of $124.1 million, 1.34% of total loans
• Unfunded Commitments - ACL of $13.2 million
• Provision recapture driven by strong credit quality
• Net charge-offs declined 69.3% to 0.10% of average loans and leases
• Regulatory capital ratios remain in excess of internal targets:
• Total capital ratio of 13.97%
• Tier 1 common equity increased 3 basis points to 10.87%
• Tangible common equity of 6.95%⁽¹⁾; decrease from linked quarter driven by decline in AOCI
• Tangible book value per share of $10.97⁽¹⁾

Archie Brown, President and Chief Executive Officer, commented, "We are pleased to announce another solid quarter of  financial results which were in line with expectations.  While we encountered some challenges related to mortgage banking and the wind down of PPP, the first quarter was a good start to what we expect will be a very strong year for First Financial."

Mr. Brown continued, "First quarter results included adjusted⁽¹⁾ earnings per share of $0.46, return on assets of 1.09% and return on tangible common equity of 15.75%.  These results were driven by provision recapture of $5.8 million, resulting from strong credit quality trends and stable economic conditions, and prudent expense management."

Mr. Brown added, "Improvement in net interest margin highlighted the quarter, with basic net interest margin increasing 12 basis points.  The margin benefited from the Fed rate hike and higher asset yields, which we expect to increase further as the year progresses given our asset sensitive balance sheet.  In addition, credit quality trends remain excellent, evidenced by stable classified asset levels, lower net charge-offs and provision recapture."

Mr. Brown further stated, "We were also pleased with our ability to diligently manage expenses, which were in line with our expectations despite elevated heathcare costs.  First quarter fee income was lower than we anticipated as rising rates negatively impacted mortgage banking revenue.  While foreign exchange declined from fourth quarter levels, Bannockburn's income can vary from quarter to quarter, and we expect them to rebound in the near term."

On loan growth, Mr. Brown remarked, "Loan growth was muted in the first quarter as originations were slowed by the peak of Omicron in January and higher payoffs continued as many borrowers sold their business or underlying assets.  Loan pipelines are strengthening and we are optimistic about improving loan trends as we move further into the year."

Regarding the Summit acquisition, Mr. Brown commented, "The integration of Summit continues to go as expected.  Its first quarter financial performance was in line with our initial expectations, and the cultural fit has proven to be as we had hoped.  Given the impact of acquisition accounting, our expectation remains that Summit's contributions will be neutral to overall 2022 financial results, and we remain bullish on the the future success of the Company."

Mr. Brown concluded, "Our first quarter results have laid a strong foundation and we believe our asset sensitive balance sheet is well-positioned for the rising rates that are expected over the course of 2022.  We have made strategic efforts to diversify our product offerings in recent years, and we believe those efforts position us to deliver the industry leading services to our clients and returns our shareholders have come to expect."

Full detail of the Company's first quarter 2022 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 22, 2022 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (844) 200-6205 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 773559.  The number should be dialed five to ten minutes prior to the start of the conference call.  A replay of the conference call will be available beginning one hour after the completion of the live call at (866) 813-9403 (U.S. toll free), (929) 458-6194 (U.S. local) and +44 204 525-0658 (all other locations), access code 565117.  The recording will be available until April 29, 2022.  The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com.  The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on Website
This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position.  Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Forward-Looking Statements

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements.  Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements.  Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

• economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
• future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
• the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
• Management's ability to effectively execute its business plans;
• mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
• the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
• the effect of changes in accounting policies and practices;
• changes in consumer spending, borrowing and saving and changes in unemployment;
• changes in customers' performance and creditworthiness;
• the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;  
• current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
• the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact  on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
• the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
• the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
• a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
• our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2021, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov. 

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing.  Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  As of March 31, 2022, the Company had $16.0 billion in assets, $9.2 billion in loans, $12.8 billion in deposits and $2.1 billion in shareholders' equity.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.3 billion in assets under management as of March 31, 2022.  The Company operated 135 full service banking centers as of March 31, 2022, primarily in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis.  Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

               

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,
	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
	2022		2021		2021		2021		2021
RESULTS OF OPERATIONS
Net income	$        41,301		$        46,945		$        60,012		$        50,888		$        47,315
Net earnings per share - basic	$            0.44		$            0.51		$            0.64		$            0.53		$            0.49
Net earnings per share - diluted	$            0.44		$            0.50		$            0.63		$            0.52		$            0.48
Dividends declared per share	$            0.23		$            0.23		$            0.23		$            0.23		$            0.23
KEY FINANCIAL RATIOS
Return on average assets	1.03%		1.16%		1.49%		1.26%		1.20%
Return on average shareholders' equity	7.53%		8.31%		10.53%		9.02%		8.44%
Return on average tangible shareholders' equity (1)	14.93%		15.11%		19.03%		16.31%		15.24%
Net interest margin	3.12%		3.19%		3.28%		3.27%		3.35%
Net interest margin (fully tax equivalent) (1)(2)	3.17%		3.23%		3.32%		3.31%		3.40%
Ending shareholders' equity as a percent of ending assets	13.35%		13.83%		14.01%		14.15%		13.97%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	6.95%		7.58%		8.21%		8.37%		8.22%
Risk-weighted assets (1)	8.85%		9.91%		10.76%		11.12%		11.02%
Average shareholders' equity as a percent of average assets	13.75%		13.98%		14.14%		13.96%		14.17%
Average tangible shareholders' equity as a percent of
average tangible assets (1)	7.44%		8.20%		8.35%		8.23%		8.38%
Book value per share	$        22.63		$        23.99		$        23.85		$        23.59		$        23.16
Tangible book value per share (1)	$        10.97		$        12.26		$        13.09		$        13.08		$        12.78
Common equity tier 1 ratio (3)	10.87%		10.84%		11.54%		11.78%		11.81%
Tier 1 ratio (3)	11.24%		11.22%		11.92%		12.16%		12.19%
Total capital ratio (3)	13.97%		14.10%		14.97%		15.31%		15.41%
Leverage ratio (3)	8.64%		8.70%		9.05%		9.14%		9.34%
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$   9,266,774		$   9,283,227		$   9,502,750		$   9,831,965		$   9,951,855
Investment securities	4,308,059		4,343,513		4,189,253		4,130,207		3,782,993
Interest-bearing deposits with other banks	234,687		166,904		32,400		45,593		46,912
Total earning assets	$ 13,809,520		$ 13,793,644		$ 13,724,403		$ 14,007,765		$ 13,781,760
Total assets	$ 16,184,919		$ 16,036,417		$ 15,995,808		$ 16,215,469		$ 16,042,654
Noninterest-bearing deposits	$   4,160,175		$   4,191,457		$   3,981,404		$   4,003,626		$   3,840,046
Interest-bearing deposits	8,623,800		8,693,792		8,685,949		8,707,553		8,531,822
Total deposits	$ 12,783,975		$ 12,885,249		$ 12,667,353		$ 12,711,179		$ 12,371,868
Borrowings	$      701,287		$      396,743		$      562,964		$      749,114		$      886,379
Shareholders' equity	$   2,225,495		$   2,241,820		$   2,261,293		$   2,263,687		$   2,272,749
CREDIT QUALITY RATIOS
Allowance to ending loans	1.34%		1.42%		1.59%		1.68%		1.71%
Allowance to nonaccrual loans	273.09%		272.76%		225.73%		184.77%		199.33%
Allowance to nonperforming loans	231.98%		219.96%		192.35%		162.12%		175.44%
Nonperforming loans to total loans	0.58%		0.65%		0.83%		1.03%		0.97%
Nonaccrual loans to total loans	0.49%		0.52%		0.70%		0.91%		0.86%
Nonperforming assets to ending loans, plus OREO	0.58%		0.65%		0.83%		1.04%		0.98%
Nonperforming assets to total assets	0.33%		0.37%		0.49%		0.62%		0.60%
Classified assets to total assets	0.67%		0.64%		1.04%		1.14%		1.22%
Net charge-offs to average loans (annualized)	0.10%		0.32%		0.10%		0.23%		0.38%

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.
(3) March 31, 2022 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2022		2021
	First		Fourth		Third		Second		First		Full
	Quarter		Quarter		Quarter		Quarter		Quarter		Year
Interest income
Loans and leases, including fees	$  87,182		$  92,682		$  96,428		$  97,494		$  98,931		$ 385,535
Investment securities
Taxable	22,096		20,993		20,088		19,524		18,607		79,212
Tax-exempt	4,431		4,127		4,282		4,871		5,043		18,323
Total investment securities interest	26,527		25,120		24,370		24,395		23,650		97,535
Other earning assets	121		71		23		25		28		147
Total interest income	113,830		117,873		120,821		121,914		122,609		483,217
Interest expense
Deposits	2,623		3,089		3,320		3,693		4,333		14,435
Short-term borrowings	317		10		68		53		67		198
Long-term borrowings	4,544		3,968		4,023		4,142		4,333		16,466
Total interest expense	7,484		7,067		7,411		7,888		8,733		31,099
Net interest income	106,346		110,806		113,410		114,026		113,876		452,118
Provision for credit losses-loans and leases	(5,589)		(9,525)		(8,193)		(4,756)		3,450		(19,024)
Provision for credit losses-unfunded commitments	(226)		1,799		(1,951)		517		538		903
Net interest income after provision for credit losses	112,161		118,532		123,554		118,265		109,888		470,239
Noninterest income
Service charges on deposit accounts	7,729		8,645		8,548		7,537		7,146		31,876
Trust and wealth management fees	6,060		6,038		5,896		6,216		5,630		23,780
Bankcard income	3,337		3,602		3,838		3,732		3,128		14,300
Client derivative fees	799		2,303		2,273		1,795		1,556		7,927
Foreign exchange income	10,151		12,808		9,191		12,037		10,757		44,793
Leasing business income	6,076		0		0		0		0		0
Net gains from sales of loans	3,872		6,492		8,586		8,489		9,454		33,021
Net gain (loss) on sale of investment securities	3		(14)		(314)		(265)		(166)		(759)
Net  gain (loss) on equity  securities	(199)		321		108		161		112		702
Other	3,465		5,465		4,411		3,285		2,705		15,866
Total noninterest income	41,293		45,660		42,537		42,987		40,322		171,506
Noninterest expenses
Salaries and employee benefits	63,947		62,170		61,717		60,784		61,253		245,924
Net occupancy	5,746		5,332		5,571		5,535		5,704		22,142
Furniture and equipment	3,567		3,161		3,318		3,371		3,969		13,819
Data processing	8,264		8,261		7,951		7,864		7,287		31,363
Marketing	1,700		2,152		2,435		2,035		1,361		7,983
Communication	666		677		669		746		838		2,930
Professional services	2,159		5,998		2,199		2,029		1,450		11,676
State intangible tax	1,131		651		1,202		1,201		1,202		4,256
FDIC assessments	1,459		1,453		1,466		1,362		1,349		5,630
Intangible amortization	2,914		2,401		2,479		2,480		2,479		9,839
Leasing business expense	3,869		0		0		0		0		0
Other	7,383		17,349		10,051		12,236		5,614		45,250
Total noninterest expenses	102,805		109,605		99,058		99,643		92,506		400,812
Income before income taxes	50,649		54,587		67,033		61,609		57,704		240,933
Income tax expense (benefit)	9,348		7,642		7,021		10,721		10,389		35,773
Net income	$  41,301		$  46,945		$  60,012		$  50,888		$  47,315		$ 205,160
ADDITIONAL DATA
Net earnings per share - basic	$     0.44		$     0.51		$      0.64		$      0.53		$      0.49		$      2.16
Net earnings per share - diluted	$     0.44		$     0.50		$      0.63		$      0.52		$      0.48		$      2.14
Dividends declared per share	$     0.23		$     0.23		$      0.23		$      0.23		$      0.23		$      0.92
Return on average assets	1.03%		1.16%		1.49%		1.26%		1.20%		1.28%
Return on average shareholders' equity	7.53%		8.31%		10.53%		9.02%		8.44%		9.08%
Interest income	$ 113,830		$ 117,873		$ 120,821		$ 121,914		$ 122,609		$ 483,217
Tax equivalent adjustment	1,467		1,386		1,434		1,619		1,652		6,091
Interest income - tax equivalent	115,297		119,259		122,255		123,533		124,261		489,308
Interest expense	7,484		7,067		7,411		7,888		8,733		31,099
Net interest income - tax equivalent	$ 107,813		$ 112,192		$ 114,844		$ 115,645		$ 115,528		$ 458,209
Net interest margin	3.12%		3.19%		3.28%		3.27%		3.35%		3.27%
Net interest margin (fully tax equivalent) (1)	3.17%		3.23%		3.32%		3.31%		3.40%		3.31%
Full-time equivalent employees	2,050 (2)		1,994		2,026		2,053		2,063

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

(2)  Includes 65 FTE from the Summit acquisition.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,		% Change		% Change
	2022		2021		2021		2021		2021		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$      230,428		$      220,031		$      209,748		$      206,918		$      210,191		4.7%		9.6%
Interest-bearing deposits with other banks	227,147		214,811		29,799		38,610		19,180		5.7%		N/M
Investment securities available-for-sale	3,957,882		4,207,846		4,114,094		3,955,839		3,753,763		(5.9)%		5.4%
Investment securities held-to-maturity	92,597		98,420		103,886		112,456		121,945		(5.9)%		(24.1)%
Other investments	114,563		102,971		97,831		129,432		131,814		11.3%		(13.1)%
Loans held for sale	12,670		29,482		33,835		31,546		34,590		(57.0)%		(63.4)%
Loans and leases
Commercial and industrial	2,800,209		2,720,028		2,602,848		2,701,203		3,044,825		2.9%		(8.0)%
Lease financing	125,867		109,624		67,855		68,229		66,574		14.8%		89.1%
Construction real estate	479,744		455,894		477,004		630,329		642,709		5.2%		(25.4)%
Commercial real estate	4,031,484		4,226,614		4,438,374		4,332,561		4,396,582		(4.6)%		(8.3)%
Residential real estate	913,838		896,069		922,492		932,112		946,522		2.0%		(3.5)%
Home equity	707,973		708,399		709,050		711,756		709,667		(0.1)%		(0.2)%
Installment	132,197		119,454		96,077		89,143		82,421		10.7%		60.4%
Credit card	50,305		52,217		47,231		46,177		44,669		(3.7)%		12.6%
Total loans	9,241,617		9,288,299		9,360,931		9,511,510		9,933,969		(0.5)%		(7.0)%
Less:
Allowance for credit losses	(124,130)		(131,992)		(148,903)		(159,590)		(169,923)		(6.0)%		(26.9)%
Net loans	9,117,487		9,156,307		9,212,028		9,351,920		9,764,046		(0.4)%		(6.6)%
Premises and equipment	190,975		193,040		192,580		192,238		204,537		(1.1)%		(6.6)%
Operating leases	87,432		73,857		0		0		0		18.4%		100.0%
Goodwill	999,959		1,000,749		937,771		937,771		937,771		(0.1)%		6.6%
Other intangibles	85,891		88,898		56,811		59,391		61,984		(3.4)%		38.6%
Accrued interest and other assets	892,119		942,729		968,210		1,021,798		935,250		(5.4)%		(4.6)%
Total Assets	$  16,009,150		$ 16,329,141		$  15,956,593		$ 16,037,919		$  16,175,071		(2.0)%		(1.0)%
LIABILITIES
Deposits
Interest-bearing demand	$   3,246,646		$   3,198,745		$   2,916,860		$   2,963,151		$   2,914,761		1.5%		11.4%
Savings	4,188,867		4,157,374		4,223,905		4,093,229		4,006,181		0.8%		4.6%
Time	1,121,966		1,330,263		1,517,419		1,548,109		1,731,757		(15.7)%		(35.2)%
Total interest-bearing deposits	8,557,479		8,686,382		8,658,184		8,604,489		8,652,699		(1.5)%		(1.1)%
Noninterest-bearing	4,261,429		4,185,572		4,019,197		3,901,691		3,995,370		1.8%		6.7%
Total deposits	12,818,908		12,871,954		12,677,381		12,506,180		12,648,069		(0.4)%		1.4%
Federal funds purchased and securities sold
under agreements to repurchase	0		51,203		81,850		255,791		181,387		(100.0)%		(100.0)%
FHLB short-term borrowings	185,000		225,000		107,000		217,000		0		(17.8)%		100.0%
Other	0		20,000		0		0		0		(100.0)%		N/M
Total short-term borrowings	185,000		296,203		188,850		472,791		181,387		(37.5)%		2.0%
Long-term debt	379,840		409,832		313,230		313,039		583,722		(7.3)%		(34.9)%
Total borrowed funds	564,840		706,035		502,080		785,830		765,109		(20.0)%		(26.2)%
Accrued interest and other liabilities	487,957		492,210		540,962		476,402		502,951		(0.9)%		(3.0)%
Total Liabilities	13,871,705		14,070,199		13,720,423		13,768,412		13,916,129		(1.4)%		(0.3)%
SHAREHOLDERS' EQUITY
Common stock	1,634,903		1,640,358		1,637,065		1,635,470		1,633,137		(0.3)%		0.1%
Retained earnings	857,178		837,473		812,082		773,857		745,220		2.4%		15.0%
Accumulated other comprehensive income (loss)	(142,477)		(433)		14,230		30,735		18,101		N/M		N/M
Treasury stock, at cost	(212,159)		(218,456)		(227,207)		(170,555)		(137,516)		(2.9)%		54.3%
Total Shareholders' Equity	2,137,445		2,258,942		2,236,170		2,269,507		2,258,942		(5.4)%		(5.4)%
Total Liabilities and Shareholders' Equity	$  16,009,150		$ 16,329,141		$  15,956,593		$ 16,037,919		$  16,175,071		(2.0)%		(1.0)%

 

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages
	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
	2022		2021		2021		2021		2021
ASSETS
Cash and due from banks	$      248,517		$      253,091		$      245,212		$      237,964		$      232,275
Interest-bearing deposits with other banks	234,687		166,904		32,400		45,593		46,912
Investment securities	4,308,059		4,343,513		4,189,253		4,130,207		3,782,993
Loans held for sale	15,589		24,491		28,365		28,348		29,689
Loans and leases
Commercial and industrial	2,736,613		2,552,686		2,634,306		2,953,185		3,029,716
Lease financing	115,703		67,537		67,159		66,124		70,508
Construction real estate	474,278		460,588		567,091		630,351		647,655
Commercial real estate	4,139,072		4,391,328		4,413,003		4,372,679		4,339,349
Residential real estate	903,567		917,399		937,969		940,600		980,718
Home equity	703,714		709,954		710,794		707,409		726,134
Installment	125,579		106,188		93,937		84,768		81,377
Credit card	52,659		53,056		50,126		48,501		46,709
Total loans	9,251,185		9,258,736		9,474,385		9,803,617		9,922,166
Less:
Allowance for credit losses	(129,601)		(144,756)		(157,727)		(169,979)		(177,863)
Net loans	9,121,584		9,113,980		9,316,658		9,633,638		9,744,303
Premises and equipment	192,832		192,941		193,775		200,558		206,628
Operating leases	81,907		801		0		0		0
Goodwill	1,000,238		938,453		937,771		937,771		937,771
Other intangibles	87,602		56,120		58,314		60,929		63,529
Accrued interest and other assets	893,904		946,123		994,060		940,461		998,554
Total Assets	$  16,184,919		$ 16,036,417		$  15,995,808		$  16,215,469		$  16,042,654
LIABILITIES
Deposits
Interest-bearing demand	$   3,246,919		$   3,069,416		$   2,960,388		$   2,973,930		$   2,948,682
Savings	4,145,615		4,195,504		4,150,610		4,096,077		3,815,314
Time	1,231,266		1,428,872		1,574,951		1,637,546		1,767,826
Total interest-bearing deposits	8,623,800		8,693,792		8,685,949		8,707,553		8,531,822
Noninterest-bearing	4,160,175		4,191,457		3,981,404		4,003,626		3,840,046
Total deposits	12,783,975		12,885,249		12,667,353		12,711,179		12,371,868
Federal funds purchased and securities sold
under agreements to repurchase	45,358		79,382		186,401		194,478		184,483
FHLB short-term borrowings	257,800		2,445		63,463		40,846		67,222
Other	12,889		654		0		0		0
Total short-term borrowings	316,047		82,481		249,864		235,324		251,705
Long-term debt	385,240		314,262		313,100		513,790		634,674
Total borrowed funds	701,287		396,743		562,964		749,114		886,379
Accrued interest and other liabilities	474,162		512,605		504,198		491,489		511,658
Total Liabilities	13,959,424		13,794,597		13,734,515		13,951,782		13,769,905
SHAREHOLDERS' EQUITY
Common stock	1,638,321		1,637,828		1,635,833		1,633,950		1,636,884
Retained earnings	841,652		822,500		783,760		754,456		726,351
Accumulated other comprehensive loss	(38,448)		8,542		36,917		25,832		42,253
Treasury stock, at cost	(216,030)		(227,050)		(195,217)		(150,551)		(132,739)
Total Shareholders' Equity	2,225,495		2,241,820		2,261,293		2,263,687		2,272,749
Total Liabilities and Shareholders' Equity	$  16,184,919		$ 16,036,417		$  15,995,808		$  16,215,469		$  16,042,654

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages
		March 31, 2022						December 31, 2021						March 31, 2021
		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield
Earning assets
Investments:
Investment securities		$      4,308,059		$          26,527		2.50%		$  4,343,513		$      25,120		2.29%		$  3,782,993		$      23,650		2.54%
Interest-bearing deposits with other banks		234,687		121		0.21%		166,904		71		0.17%		46,912		28		0.24%
Gross loans (1)		9,266,774		87,182		3.82%		9,283,227		92,682		3.96%		9,951,855		98,931		4.03%
Total earning assets		13,809,520		113,830		3.34%		13,793,644		117,873		3.39%		13,781,760		122,609		3.61%
Nonearning assets
Allowance for credit losses		(129,601)						(144,756)						(177,863)
Cash and due from banks		248,517						253,091						232,275
Accrued interest and other assets		2,256,483						2,134,438						2,206,482
Total assets		$    16,184,919						$ 16,036,417						$ 16,042,654
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$      3,246,919		$              492		0.06%		$  3,069,416		$           461		0.06%		$  2,948,682		$           534		0.07%
Savings		4,145,615		850		0.08%		4,195,504		901		0.09%		3,815,314		1,178		0.13%
Time		1,231,266		1,281		0.42%		1,428,872		1,727		0.48%		1,767,826		2,621		0.60%
Total interest-bearing deposits		8,623,800		2,623		0.12%		8,693,792		3,089		0.14%		8,531,822		4,333		0.21%
Borrowed funds
Short-term borrowings		316,047		317		0.41%		82,481		10		0.05%		251,705		67		0.11%
Long-term debt		385,240		4,544		4.78%		314,262		3,968		5.01%		634,674		4,333		2.77%
Total borrowed funds		701,287		4,861		2.81%		396,743		3,978		3.98%		886,379		4,400		2.01%
Total interest-bearing liabilities		9,325,087		7,484		0.33%		9,090,535		7,067		0.31%		9,418,201		8,733		0.38%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		4,160,175						4,191,457						3,840,046
Other liabilities		474,162						512,605						511,658
Shareholders' equity		2,225,495						2,241,820						2,272,749
Total liabilities & shareholders' equity		$    16,184,919						$ 16,036,417						$ 16,042,654
Net interest income		$        106,346						$     110,806						$     113,876
Net interest spread						3.01%						3.08%						3.23%
Net interest margin						3.12%						3.19%						3.35%
Tax equivalent adjustment						0.05%						0.04%						0.05%
Net interest margin (fully tax equivalent)						3.17%						3.23%						3.40%
(1) Loans held for sale and nonaccrual loans are included in gross loans.

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)
(Dollars in thousands)
(Unaudited)
		Linked Qtr. Income Variance						Comparable Qtr. Income Variance
		Rate		Volume		Total		Rate		Volume		Total
Earning assets
Investment securities		$     2,220		$       (813)		$     1,407		$       (356)		$     3,233		$      2,877
Interest-bearing deposits with other banks		17		33		50		(4)		97		93
Gross loans (2)		(3,404)		(2,096)		(5,500)		(5,304)		(6,445)		(11,749)
Total earning assets		(1,167)		(2,876)		(4,043)		(5,664)		(3,115)		(8,779)
Interest-bearing liabilities
Total interest-bearing deposits		$       (386)		$         (80)		$       (466)		$    (1,738)		$          28		$     (1,710)
Borrowed funds
Short-term borrowings		75		232		307		185		65		250
Long-term debt		(179)		755		576		3,153		(2,942)		211
Total borrowed funds		(104)		987		883		3,338		(2,877)		461
Total interest-bearing liabilities		(490)		907		417		1,600		(2,849)		(1,249)
Net interest income (1)		$       (677)		$     (3,783)		$    (4,460)		$    (7,264)		$       (266)		$     (7,530)

(1) Not tax equivalent.

(2) Loans held for sale and nonaccrual loans are included in gross loans.

 

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
	2022		2021		2021		2021		2021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$  131,992		$  148,903		$  159,590		$  169,923		$  175,679
Purchase accounting  ACL for PCD	0		17		0		0		0
Provision for credit losses	(5,589)		(9,525)		(8,193)		(4,756)		3,450
Gross charge-offs
Commercial and industrial	2,845		1,364		2,617		3,729		7,910
Lease financing	131		0		0		0		0
Construction real estate	0		1,496		0		0		2
Commercial real estate	0		9,150		1,030		2,041		1,250
Residential real estate	22		6		74		46		1
Home equity	21		22		200		240		611
Installment	177		184		37		77		36
Credit card	246		149		230		179		222
Total gross charge-offs	3,442		12,371		4,188		6,312		10,032
Recoveries
Commercial and industrial	379		201		869		205		337
Lease financing	33		0		0		0		0
Construction real estate	0		0		0		3		0
Commercial real estate	222		4,292		223		75		195
Residential real estate	90		74		56		54		44
Home equity	265		303		426		317		177
Installment	21		27		53		37		34
Credit card	159		71		67		44		39
Total recoveries	1,169		4,968		1,694		735		826
Total net charge-offs	2,273		7,403		2,494		5,577		9,206
Ending allowance for credit losses	$  124,130		$  131,992		$  148,903		$  159,590		$  169,923
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.37%		0.18%		0.26%		0.48%		1.01%
Lease financing	0.34%		0.00%		0.00%		0.00%		0.00%
Construction real estate	0.00%		1.29%		0.00%		0.00%		0.00%
Commercial real estate	(0.02)%		0.44%		0.07%		0.18%		0.10%
Residential real estate	(0.03)%		(0.03)%		0.01%		0.00%		(0.02)%
Home equity	(0.14)%		(0.16)%		(0.13)%		(0.04)%		0.24%
Installment	0.50%		0.59%		(0.07)%		0.19%		0.01%
Credit card	0.67%		0.58%		1.29%		1.12%		1.59%
Total net charge-offs	0.10%		0.32%		0.10%		0.23%		0.38%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$    14,390		$    17,362		$    15,160		$    27,426		$    24,941
Lease financing	249		203		0		16		0
Construction real estate	0		0		0		0		0
Commercial real estate	19,843		19,512		38,564		45,957		44,514
Residential real estate	7,432		8,305		9,416		9,480		11,359
Home equity	3,377		2,922		2,735		3,376		4,286
Installment	163		88		91		115		146
Nonaccrual loans	45,454		48,392		65,966		86,370		85,246
Accruing troubled debt restructurings (TDRs)	8,055		11,616		11,448		12,070		11,608
Total nonperforming loans	53,509		60,008		77,414		98,440		96,854
Other real estate owned (OREO)	72		98		340		340		854
Total nonperforming assets	53,581		60,106		77,754		98,780		97,708
Accruing loans past due 90 days or more	87		137		104		155		92
Total underperforming assets	$    53,668		$    60,243		$    77,858		$    98,935		$    97,800
Total classified assets	$  106,839		$  104,815		$  165,462		$  182,516		$  196,782
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	273.09%		272.76%		225.73%		184.77%		199.33%
Nonperforming loans	231.98%		219.96%		192.35%		162.12%		175.44%
Total ending loans	1.34%		1.42%		1.59%		1.68%		1.71%
Nonperforming loans to total loans	0.58%		0.65%		0.83%		1.03%		0.97%
Nonaccrual loans to total loans	0.49%		0.52%		0.70%		0.91%		0.86%
Nonperforming assets to
Ending loans, plus OREO	0.58%		0.65%		0.83%		1.04%		0.98%
Total assets	0.33%		0.37%		0.49%		0.62%		0.60%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.49%		0.52%		0.71%		0.91%		0.87%
Total assets	0.28%		0.30%		0.42%		0.54%		0.53%
Classified assets to total assets	0.67%		0.64%		1.04%		1.14%		1.22%

(1)  Nonaccrual loans include nonaccrual TDRs of $16.2  million,  $16.0  million, $20.3 million,  $21.5  million, and $20.9 million, as of March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021,  respectively.

 

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
	2022		2021		2021		2021		2021
PER COMMON SHARE
Market Price
High	$        26.73		$        25.79		$        24.06		$        26.02		$        26.40
Low	$        22.92		$        22.89		$        21.48		$        23.35		$        17.62
Close	$        23.05		$        24.38		$        23.41		$        23.63		$        24.00
Average shares outstanding - basic	93,383,932		92,903,900		94,289,097		96,123,645		96,873,940
Average shares outstanding - diluted	94,263,925		93,761,909		95,143,930		97,009,712		97,727,527
Ending shares outstanding	94,451,496		94,149,240		93,742,797		96,199,509		97,517,693
Total shareholders' equity	$  2,137,445		$  2,258,942		$  2,236,170		$  2,269,507		$  2,258,942
REGULATORY CAPITAL	Preliminary
Common equity tier 1 capital	$   1,272,115		$   1,262,789		$   1,316,059		$   1,333,209		$   1,334,882
Common equity tier 1 capital ratio	10.87%		10.84%		11.54%		11.78%		11.81%
Tier 1 capital	$   1,316,020		$   1,306,571		$   1,359,297		$   1,376,333		$   1,377,892
Tier 1 ratio	11.24%		11.22%		11.92%		12.16%		12.19%
Total capital	$   1,635,003		$   1,642,549		$   1,706,513		$   1,732,930		$   1,741,755
Total capital ratio	13.97%		14.10%		14.97%		15.31%		15.41%
Total capital in excess of minimum requirement	$      406,011		$      419,754		$      509,536		$      544,478		$      554,834
Total risk-weighted assets	$ 11,704,681		$ 11,645,666		$ 11,399,782		$ 11,318,590		$ 11,304,012
Leverage ratio	8.64%		8.70%		9.05%		9.14%		9.34%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	13.35%		13.83%		14.01%		14.15%		13.97%
Ending tangible shareholders' equity to ending tangible assets (1)	6.95%		7.58%		8.21%		8.37%		8.22%
Average shareholders' equity to average assets	13.75%		13.98%		14.14%		13.96%		14.17%
Average tangible shareholders' equity to average tangible assets (1)	7.44%		8.20%		8.35%		8.23%		8.38%
REPURCHASE PROGRAM (2)
Shares repurchased	0		0		2,484,295		1,308,945		840,115
Average share repurchase price	N/A		N/A		$        23.04		$        25.11		$        21.40
Total cost of shares repurchased	N/A		N/A		$      57,231		$      32,864		$      17,982

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable

 

View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-first-quarter-2022-financial-results-301530549.html

SOURCE First Financial Bancorp.

FAQ

What were First Financial Bancorp's earnings per share for Q1 2022?

First Financial Bancorp reported earnings of $0.44 per diluted share for Q1 2022.

How did First Financial Bancorp's net income in Q1 2022 compare to Q4 2021?

Net income for Q1 2022 was $41.3 million, down from $46.9 million in Q4 2021.

What was the return on average assets for FFBC in Q1 2022?

The return on average assets for FFBC in Q1 2022 was 1.03%.

What changes occurred in the net interest margin for First Financial Bancorp?

The net interest margin for FFBC was 3.17%, a slight decrease from 3.23% in the previous quarter.

How much did First Financial Bancorp's noninterest income total in Q1 2022?

Noninterest income for Q1 2022 totaled $41.3 million.

What was the status of loan balances for FFBC in Q1 2022?

Loan balances decreased by $46.7 million compared to the linked quarter.