First Financial Bancorp Announces Fourth Quarter and Full Year 2021 Financial Results and Quarterly Dividend

Rhea-AI Summary

First Financial Bancorp (FFBC) reported Q4 2021 earnings per diluted share of $0.50 ($0.58 adjusted). Net income was $46.9 million, a decline from $60.0 million in Q3 2021. The return on average assets stood at 1.16%, down from 1.49%. The company closed the acquisition of Summit Funding Group and achieved $143.6 million in commercial loan sales. A quarterly dividend of $0.23 per share was announced along with a share repurchase authorization of up to 5 million shares. Noninterest income grew to $45.7 million, while noninterest expenses were $109.6 million.

Positive

• Earnings per diluted share increased to $2.14 for 2021 from $1.59 in 2020.
• Core loan growth of $148.8 million (6.3% annualized), excluding declines.
• Provision recapture of $7.7 million due to improved credit quality.
• Total capital ratio of 14.10% indicating strong financial health.
• Authorized a new share repurchase program for up to 5 million shares.

Negative

• Net income declined to $46.9 million in Q4 2021 from $60.0 million in Q3 2021.
• Return on assets fell to 1.16% from 1.49% in the previous quarter.
• Loan balances decreased by $72.6 million from Q3 2021.

CINCINNATI, Jan. 27, 2022 /PRNewswire/ --

• Earnings per diluted share of $0.50; $0.58 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.16%; 1.34% on an adjusted⁽¹⁾ basis
• Closed acquisition of Summit Funding Group
• $143.6 million of commercial loan sales during the quarter
• Loan growth of $148.8 million, excluding decline in PPP loans, loan sales, Summit acquisition⁽²⁾
• Classified assets declined 36.7%; Provision recapture of $7.7 million
• Announces $0.23 per share Quarterly Dividend and Board authorizes repurchase of up to 5 million shares

First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and twelve months ended December 31, 2021. 

For the three months ended December 31, 2021, the Company reported net income of $46.9 million, or $0.50 per diluted common share.  These results compare to net income of $60.0 million, or $0.63 per diluted common share, for the third quarter of 2021 and $48.3 million, or $0.49 per diluted common share, for the fourth quarter of 2020.  For the twelve months ended December 31, 2021, First Financial had earnings per diluted common share of $2.14 compared to $1.59 for the same period in 2020.

Return on average assets for the fourth quarter of 2021 was 1.16% while return on average tangible common equity was 15.11%⁽¹⁾.  These compare to returns on average assets of 1.49% and 1.20%, and returns on average tangible common equity of 19.03%⁽¹⁾ and 15.50%⁽¹⁾, in the third quarter of 2021 and the fourth quarter of 2020, respectively.

Fourth quarter 2021 highlights include:

• Closed the acquisition of Summit Funding Group⁽²⁾
• $116.2 million in leases acquired; $42.3 million financing leases, $73.9 million operating leases
• $63.0 million of goodwill and $34.6 million of other intangible assets created
• Loan balances declined $72.6 million from the third quarter
• Core loan balances increased $148.8 million⁽²⁾, or 6.3% on an annualized basis, excluding PPP forgiveness of $120.2 million and $143.6 million of loan sales during the quarter, which were partially offset by acquisition of $42.3⁽²⁾ million in Summit finance leases
• Record production during the quarter of $1.3 billion in commitments
• Net interest margin of 3.23% on a fully tax-equivalent basis⁽¹⁾ in line with expectations
• 9 basis point decrease from linked quarter driven by PPP forgiveness which offset increase in other loan fees during the period

(1) Financial information in this release that is described as "adjusted" or that is presented on a fully tax equivalent basis is non-GAAP.  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 fair value measurements of assets acquired and liabilities assumed in the Summit acquisition 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.

• Noninterest income of $45.7 million, or $45.4 million as adjusted⁽¹⁾
• Record Bannockburn income of $12.8 million
• Wealth management fees of $6.0 million
• Other noninterest income increased $1.1 million, or 23.9%; driven by syndication fees
• Noninterest expenses of $109.6 million, or $94.1 million as adjusted⁽¹⁾
• Adjustments⁽¹⁾ include:
• $6.1 million reclassification of tax credit investment write-downs
• $4.1 million of acquisition related costs
• $3.5 million litigation settlement
• $1.9 million of other costs not expected to recur such as branch consolidation and severance costs
• Increase in expenses driven by incentive compensation tied to the Company's strong financial performance
• Efficiency ratio of 70.1%; 60.2% as adjusted⁽¹⁾
• Total Allowance for Credit Losses of $145.4 million; Total quarterly provision recapture of $7.7 million
• Loans and leases - ACL of $132.0 million, 1.42% of total loans
• Unfunded Commitments - ACL of $13.4 million
• Provision recapture driven by improvements in economic conditions and declining classified asset balances
• Sold $133.9 million of hotel loans in an effort to address portfolio concentrations, resulting in $9.2 million of net charge-offs
• Strong capital ratios
• Total capital of 14.10%
• Tier 1 common equity of 10.84%
• Tangible common equity of 7.58%⁽¹⁾
• Tangible book value per share of $12.26⁽¹⁾

Additionally, First Financial's board of directors has authorized a new share repurchase program in replacement of the previously authorized program, pursuant to which management is authorized to purchase up to 5 million shares over the next two years.  The board of directors also approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on March 15, 2022 to shareholders of record as of March 1, 2022.

Archie Brown, President and Chief Executive Officer, commented, "We are pleased to announce another quarter of strong financial results that was a fitting end to an exceptional year highlighted by robust earnings, strong fee income, provision recapture, improved credit trends and the acquisition of Summit Funding Group."

Mr. Brown continued, "Fourth quarter results remained strong across the board, with adjusted⁽¹⁾ earnings per share of $0.58, return on assets of 1.34% and an efficiency ratio of 60.2%.  These results were driven by provision recapture of $7.7 million, resulting from improving credit quality trends, specifically, a 36.7% decline in classified asset balances, and stable economic conditions.  Earnings were also positively impacted by record Bannockburn income and elevated wealth management revenues.  In addition, we were very encouraged by strong core loan growth and record origination activity during the period."

Mr. Brown added, "We were also very excited to announce and close our acquisition of Summit Funding Group during the quarter.  Summit has developed long-standing relationships across the country and demonstrated the ability to produce high-quality and consistent lease origination volumes. We are confident in Summit's ability to leverage its nimble platform to provide our existing clients additional leasing products and we believe the culture will fit seamlessly into First Financial."

Mr. Brown commented regarding the Company's full year financial performance, "2021 was an exceptional year.  PPP income offset the pressure from a historically low interest rate environment, while low credit costs drove strong earnings and reflected credit trends that improved dramatically over the course of the year.  In addition, we had record fee income in 2021, which was particularly satisfying, given our strategic focus on diversifying our revenue streams in recent years.  We successfully managed expenses, while continuing to invest in technology and rewarding our people for our strong results.  Loan production in the back half of the year was very encouraging as was the continued growth in low cost deposits.  Our capital ratios remain strong and we delivered industry leading returns through aggressively repurchasing shares and maintaining our common dividend."

Mr. Brown concluded, "All of this was accomplished amidst a continuing pandemic.  Once again, our associates demonstrated their resilience and delivered the type of service and results that our clients and shareholders have come to expect.  In 2022, we will maintain our focus on being a positive influence that helps our clients and communities thrive, and capitalize on the financial momentum achieved in 2021."

Full detail of the Company's fourth quarter 2021 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, January 28, 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 080098.  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 245117.  The recording will be available until February 11, 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 declines in housing prices, high 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 of a slowing U.S. economy and increased unemployment 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, 2020, 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 December 31, 2021, the Company had $16.3 billion in assets, $9.3 billion in loans, $12.9 billion in deposits and $2.3 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 $3.4 billion in assets under management as of December 31, 2021.  The Company operated 139 full service banking centers as of December 31, 2021, 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,										Twelve months ended,
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		December 31,
	2021		2021		2021		2021		2020		2021		2020
RESULTS OF OPERATIONS
Net income	$ 46,945		$ 60,012		$ 50,888		$ 47,315		$ 48,312		$ 205,160		$ 155,810
Net earnings per share - basic	$ 0.51		$ 0.64		$ 0.53		$ 0.49		$ 0.50		$ 2.16		$ 1.60
Net earnings per share - diluted	$ 0.50		$ 0.63		$ 0.52		$ 0.48		$ 0.49		$ 2.14		$ 1.59
Dividends declared per share	$ 0.23		$ 0.23		$ 0.23		$ 0.23		$ 0.23		$ 0.92		$ 0.92
KEY FINANCIAL RATIOS
Return on average assets	1.16 %		1.49 %		1.26 %		1.20 %		1.20 %		1.28 %		1.00 %
Return on average shareholders' equity	8.31 %		10.53 %		9.02 %		8.44 %		8.52 %		9.08 %		7.02 %
Return on average tangible shareholders' equity (1)	15.11 %		19.03 %		16.31 %		15.24 %		15.50 %		16.43 %		12.97 %
Net interest margin	3.19 %		3.28 %		3.27 %		3.35 %		3.45 %		3.27 %		3.46 %
Net interest margin (fully tax equivalent) (1)(2)	3.23 %		3.32 %		3.31 %		3.40 %		3.49 %		3.31 %		3.51 %
Ending shareholders' equity as a percent of ending assets	13.83 %		14.01 %		14.15 %		13.97 %		14.29 %		13.83 %		14.29 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	7.58 %		8.21 %		8.37 %		8.22 %		8.47 %		7.58 %		8.47 %
Risk-weighted assets (1)	9.91 %		10.76 %		11.12 %		11.02 %		11.29 %		9.91 %		11.29 %
Average shareholders' equity as a percent of average assets	13.98 %		14.14 %		13.96 %		14.17 %		14.07 %		14.06 %		14.30 %
Average tangible shareholders' equity as a percent of
average tangible assets (1)	8.20 %		8.35 %		8.23 %		8.38 %		8.26 %		8.29 %		8.28 %
Book value per share	$ 23.99		$ 23.85		$ 23.59		$ 23.16		$ 23.28		$ 23.99		$ 23.28
Tangible book value per share (1)	$ 12.26		$ 13.09		$ 13.08		$ 12.78		$ 12.93		$ 12.26		$ 12.93
Common equity tier 1 ratio (3)	10.84 %		11.54 %		11.78 %		11.81 %		11.82 %		10.84 %		11.82 %
Tier 1 ratio (3)	11.22 %		11.92 %		12.16 %		12.19 %		12.20 %		11.22 %		12.20 %
Total capital ratio (3)	14.10 %		14.97 %		15.31 %		15.41 %		15.55 %		14.10 %		15.55 %
Leverage ratio (3)	8.70 %		9.05 %		9.14 %		9.34 %		9.55 %		8.70 %		9.55 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$ 9,283,227		$ 9,502,750		$ 9,831,965		$ 9,951,855		$ 10,127,881		$ 9,640,235		$ 9,902,656
Investment securities	4,343,513		4,189,253		4,130,207		3,782,993		3,403,839		4,113,240		3,212,051
Interest-bearing deposits with other banks	166,904		32,400		45,593		46,912		143,884		73,170		78,943
Total earning assets	$ 13,793,644		$ 13,724,403		$ 14,007,765		$ 13,781,760		$ 13,675,604		$ 13,826,645		$ 13,193,650
Total assets	$ 16,036,417		$ 15,995,808		$ 16,215,469		$ 16,042,654		$ 16,030,986		$ 16,072,360		$ 15,529,144
Noninterest-bearing deposits	$ 4,191,457		$ 3,981,404		$ 4,003,626		$ 3,840,046		$ 3,720,417		$ 4,005,034		$ 3,310,483
Interest-bearing deposits	8,693,792		8,685,949		8,707,553		8,531,822		8,204,306		8,655,308		8,054,687
Total deposits	$ 12,885,249		$ 12,667,353		$ 12,711,179		$ 12,371,868		$ 11,924,723		$ 12,660,342		$ 11,365,170
Borrowings	$ 396,743		$ 562,964		$ 749,114		$ 886,379		$ 1,307,461		$ 647,223		$ 1,458,701
Shareholders' equity	$ 2,241,820		$ 2,261,293		$ 2,263,687		$ 2,272,749		$ 2,256,062		$ 2,259,807		$ 2,220,645
CREDIT QUALITY RATIOS
Allowance to ending loans	1.42 %		1.59 %		1.68 %		1.71 %		1.77 %		1.42 %		1.77 %
Allowance to nonaccrual loans	272.76 %		225.73 %		184.77 %		199.33 %		217.55 %		272.76 %		217.55 %
Allowance to nonperforming loans	219.96 %		192.35 %		162.12 %		175.44 %		199.97 %		219.96 %		199.97 %
Nonperforming loans to total loans	0.65 %		0.83 %		1.03 %		0.97 %		0.89 %		0.65 %		0.89 %
Nonaccrual loans to total loans	0.52 %		0.70 %		0.91 %		0.86 %		0.82 %		0.52 %		0.82 %
Nonperforming assets to ending loans, plus OREO	0.65 %		0.83 %		1.04 %		0.98 %		0.90 %		0.65 %		0.90 %
Nonperforming assets to total assets	0.37 %		0.49 %		0.62 %		0.60 %		0.56 %		0.37 %		0.56 %
Classified assets to total assets	0.64 %		1.04 %		1.14 %		1.22 %		0.89 %		0.64 %		0.89 %
Net charge-offs to average loans (annualized)	0.32 %		0.10 %		0.23 %		0.38 %		0.26 %		0.26 %		0.14 %

(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) December 31, 2021 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	Three months ended,						Twelve months ended,
	December 31,						December 31,
	2021		2020		% Change		2021		2020		% Change
Interest income
Loans and leases, including fees	$ 92,682		$ 106,733		(13.2) %		$ 385,535		$ 431,657		(10.7) %
Investment securities
Taxable	20,993		18,402		14.1 %		79,212		73,789		7.3 %
Tax-exempt	4,127		4,839		(14.7) %		18,323		19,242		(4.8) %
Total investment securities interest	25,120		23,241		8.1 %		97,535		93,031		4.8 %
Other earning assets	71		55		29.1 %		147		275		(46.5) %
Total interest income	117,873		130,029		(9.3) %		483,217		524,963		(8.0) %
Interest expense
Deposits	3,089		5,920		(47.8) %		14,435		41,922		(65.6) %
Short-term borrowings	10		30		(66.7) %		198		6,442		(96.9) %
Long-term borrowings	3,968		5,606		(29.2) %		16,466		20,088		(18.0) %
Total interest expense	7,067		11,556		(38.8) %		31,099		68,452		(54.6) %
Net interest income	110,806		118,473		(6.5) %		452,118		456,511		(1.0) %
Provision for credit losses-loans and leases	(9,525)		13,758		N/M		(19,024)		70,796		N/M
Provision for credit losses-unfunded commitments	1,799		(2,250)		N/M		903		(237)		N/M
Net interest income after provision for credit losses	118,532		106,965		10.8 %		470,239		385,952		21.8 %
Noninterest income
Service charges on deposit accounts	8,645		7,654		12.9 %		31,876		29,446		8.3 %
Trust and wealth management fees	6,038		5,395		11.9 %		23,780		21,286		11.7 %
Bankcard income	3,602		3,060		17.7 %		14,300		11,726		22.0 %
Client derivative fees	2,303		2,021		14.0 %		7,927		10,313		(23.1) %
Foreign exchange income	12,808		12,305		4.1 %		44,793		39,377		13.8 %
Net gains from sales of loans	6,492		13,089		(50.4) %		33,021		51,176		(35.5) %
Net gain (loss) on sale of investment securities	(14)		4,618		(100.3) %		(759)		4,563		(116.6) %
Net gain (loss) on equity  securities	321		8,975		(96.4) %		702		9,045		(92.2) %
Other	5,465		4,398		24.3 %		15,866		12,191		30.1 %
Total noninterest income	45,660		61,515		(25.8) %		171,506		189,123		(9.3) %
Noninterest expenses
Salaries and employee benefits	62,170		62,263		(0.1) %		245,924		236,779		3.9 %
Net occupancy	5,332		6,159		(13.4) %		22,142		23,266		(4.8) %
Furniture and equipment	3,161		3,596		(12.1) %		13,819		14,968		(7.7) %
Data processing	8,261		7,269		13.6 %		31,363		27,514		14.0 %
Marketing	2,152		1,999		7.7 %		7,983		6,414		24.5 %
Communication	677		840		(19.4) %		2,930		3,492		(16.1) %
Professional services	5,998		3,038		97.4 %		11,676		9,961		17.2 %
Debt extinguishment	0		7,257		(100.0) %		0		7,257		(100.0) %
State intangible tax	651		1,514		(57.0) %		4,256		6,058		(29.7) %
FDIC assessments	1,453		1,065		36.4 %		5,630		5,110		10.2 %
Intangible amortization	2,401		2,764		(13.1) %		9,839		11,126		(11.6) %
Other	17,349		17,034		1.8 %		45,250		38,719		16.9 %
Total noninterest expenses	109,605		114,798		(4.5) %		400,812		390,664		2.6 %
Income before income taxes	54,587		53,682		1.7 %		240,933		184,411		30.7 %
Income tax expense	7,642		5,370		42.3 %		35,773		28,601		25.1 %
Net income	$ 46,945		$ 48,312		(2.8) %		$ 205,160		$ 155,810		31.7 %
ADDITIONAL DATA
Net earnings per share - basic	$ 0.51		$ 0.50				$ 2.16		$ 1.60
Net earnings per share - diluted	$ 0.50		$ 0.49				$ 2.14		$ 1.59
Dividends declared per share	$ 0.23		$ 0.23				$ 0.92		$ 0.92
Return on average assets	1.16 %		1.20 %				1.28 %		1.00 %
Return on average shareholders' equity	8.31 %		8.52 %				9.08 %		7.02 %
Interest income	$ 117,873		$ 130,029		(9.3) %		$ 483,217		$ 524,963		(8.0) %
Tax equivalent adjustment	1,386		1,613		(14.1) %		6,091		6,529		(6.7) %
Interest income - tax equivalent	119,259		131,642		(9.4) %		489,308		531,492		(7.9) %
Interest expense	7,067		11,556		(38.8) %		31,099		68,452		(54.6) %
Net interest income - tax equivalent	$ 112,192		$ 120,086		(6.6) %		$ 458,209		$ 463,040		(1.0) %
Net interest margin	3.19 %		3.45 %				3.27 %		3.46 %
Net interest margin (fully tax equivalent) (1)	3.23 %		3.49 %				3.31 %		3.51 %
Full-time equivalent employees	1,994		2,075

(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.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2021
	Fourth		Third		Second		First		Year to		% Change
	Quarter		Quarter		Quarter		Quarter		Date		Linked Qtr.
Interest income
Loans and leases, including fees	$ 92,682		$ 96,428		$ 97,494		$ 98,931		$ 385,535		(3.9) %
Investment securities
Taxable	20,993		20,088		19,524		18,607		79,212		4.5 %
Tax-exempt	4,127		4,282		4,871		5,043		18,323		(3.6) %
Total investment securities interest	25,120		24,370		24,395		23,650		97,535		3.1 %
Other earning assets	71		23		25		28		147		208.7 %
Total interest income	117,873		120,821		121,914		122,609		483,217		(2.4) %
Interest expense
Deposits	3,089		3,320		3,693		4,333		14,435		(7.0) %
Short-term borrowings	10		68		53		67		198		(85.3) %
Long-term borrowings	3,968		4,023		4,142		4,333		16,466		(1.4) %
Total interest expense	7,067		7,411		7,888		8,733		31,099		(4.6) %
Net interest income	110,806		113,410		114,026		113,876		452,118		(2.3) %
Provision for credit losses-loans and leases	(9,525)		(8,193)		(4,756)		3,450		(19,024)		16.3 %
Provision for credit losses-unfunded commitments	1,799		(1,951)		517		538		903		N/M
Net interest income after provision for credit losses	118,532		123,554		118,265		109,888		470,239		(4.1) %
Noninterest income
Service charges on deposit accounts	8,645		8,548		7,537		7,146		31,876		1.1 %
Trust and wealth management fees	6,038		5,896		6,216		5,630		23,780		2.4 %
Bankcard income	3,602		3,838		3,732		3,128		14,300		(6.1) %
Client derivative fees	2,303		2,273		1,795		1,556		7,927		1.3 %
Foreign exchange income	12,808		9,191		12,037		10,757		44,793		39.4 %
Net gains from sales of loans	6,492		8,586		8,489		9,454		33,021		(24.4) %
Net gain (loss) on sale of investment securities	(14)		(314)		(265)		(166)		(759)		(95.5) %
Net  gain (loss) on equity  securities	321		108		161		112		702		197.2 %
Other	5,465		4,411		3,285		2,705		15,866		23.9 %
Total noninterest income	45,660		42,537		42,987		40,322		171,506		7.3 %
Noninterest expenses
Salaries and employee benefits	62,170		61,717		60,784		61,253		245,924		0.7 %
Net occupancy	5,332		5,571		5,535		5,704		22,142		(4.3) %
Furniture and equipment	3,161		3,318		3,371		3,969		13,819		(4.7) %
Data processing	8,261		7,951		7,864		7,287		31,363		3.9 %
Marketing	2,152		2,435		2,035		1,361		7,983		(11.6) %
Communication	677		669		746		838		2,930		1.2 %
Professional services	5,998		2,199		2,029		1,450		11,676		172.8 %
State intangible tax	651		1,202		1,201		1,202		4,256		(45.8) %
FDIC assessments	1,453		1,466		1,362		1,349		5,630		(0.9) %
Intangible amortization	2,401		2,479		2,480		2,479		9,839		(3.1) %
Other	17,349		10,051		12,236		5,614		45,250		72.6 %
Total noninterest expenses	109,605		99,058		99,643		92,506		400,812		10.6 %
Income before income taxes	54,587		67,033		61,609		57,704		240,933		(18.6) %
Income tax expense	7,642		7,021		10,721		10,389		35,773		8.8 %
Net income	$ 46,945		$ 60,012		$ 50,888		$ 47,315		$ 205,160		(21.8) %
ADDITIONAL DATA
Net earnings per share - basic	$ 0.51		$ 0.64		$ 0.53		$ 0.49		$ 2.16
Net earnings per share - diluted	$ 0.50		$ 0.63		$ 0.52		$ 0.48		$ 2.14
Dividends declared per share	$ 0.23		$ 0.23		$ 0.23		$ 0.23		$ 0.92
Return on average assets	1.16 %		1.49 %		1.26 %		1.20 %		1.28 %
Return on average shareholders' equity	8.31 %		10.53 %		9.02 %		8.44 %		9.08 %
Interest income	$ 117,873		$ 120,821		$ 121,914		$ 122,609		$ 483,217		(2.4) %
Tax equivalent adjustment	1,386		1,434		1,619		1,652		6,091		(3.3) %
Interest income - tax equivalent	119,259		122,255		123,533		124,261		489,308		(2.5) %
Interest expense	7,067		7,411		7,888		8,733		31,099		(4.6) %
Net interest income - tax equivalent	$ 112,192		$ 114,844		$ 115,645		$ 115,528		$ 458,209		(2.3) %
Net interest margin	3.19 %		3.28 %		3.27 %		3.35 %		3.27 %
Net interest margin (fully tax equivalent) (1)	3.23 %		3.32 %		3.31 %		3.40 %		3.31 %
Full-time equivalent employees	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.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2020
	Fourth		Third		Second		First		Full
	Quarter		Quarter		Quarter		Quarter		Year
Interest income
Loans and leases, including fees	$ 106,733		$ 103,249		$ 105,900		$ 115,775		$ 431,657
Investment securities
Taxable	18,402		17,906		18,476		19,005		73,789
Tax-exempt	4,839		4,884		4,937		4,582		19,242
Total investment securities interest	23,241		22,790		23,413		23,587		93,031
Other earning assets	55		31		47		142		275
Total interest income	130,029		126,070		129,360		139,504		524,963
Interest expense
Deposits	5,920		7,886		11,751		16,365		41,922
Short-term borrowings	30		51		1,274		5,087		6,442
Long-term borrowings	5,606		5,953		4,759		3,770		20,088
Total interest expense	11,556		13,890		17,784		25,222		68,452
Net interest income	118,473		112,180		111,576		114,282		456,511
Provision for credit losses-loans and leases	13,758		15,299		17,859		23,880		70,796
Provision for credit losses-unfunded commitments	(2,250)		(1,925)		2,370		1,568		(237)
Net interest income after provision for credit losses	106,965		98,806		91,347		88,834		385,952
Noninterest income
Service charges on deposit accounts	7,654		7,356		6,001		8,435		29,446
Trust and wealth management fees	5,395		4,940		5,254		5,697		21,286
Bankcard income	3,060		3,124		2,844		2,698		11,726
Client derivative fees	2,021		2,203		2,984		3,105		10,313
Foreign exchange income	12,305		10,530		6,576		9,966		39,377
Net gains from sales of loans	13,089		18,594		16,662		2,831		51,176
Net gain (loss) on sale of investment securities	4,618		2		2		(59)		4,563
Net  gain (loss) on equity  securities	8,975		18		150		(98)		9,045
Other	4,398		2,732		2,252		2,809		12,191
Total noninterest income	61,515		49,499		42,725		35,384		189,123
Noninterest expenses
Salaries and employee benefits	62,263		63,769		55,925		54,822		236,779
Net occupancy	6,159		5,625		5,378		6,104		23,266
Furniture and equipment	3,596		3,638		3,681		4,053		14,968
Data processing	7,269		6,837		7,019		6,389		27,514
Marketing	1,999		1,856		1,339		1,220		6,414
Communication	840		855		907		890		3,492
Professional services	3,038		2,443		2,205		2,275		9,961
Debt extinguishment	7,257		0		0		0		7,257
State intangible tax	1,514		1,514		1,514		1,516		6,058
FDIC assessments	1,065		1,350		1,290		1,405		5,110
Intangible amortization	2,764		2,779		2,791		2,792		11,126
Other	17,034		6,845		6,640		8,200		38,719
Total noninterest expenses	114,798		97,511		88,689		89,666		390,664
Income before income taxes	53,682		50,794		45,383		34,552		184,411
Income tax expense (benefit)	5,370		9,317		7,990		5,924		28,601
Net income	$ 48,312		$ 41,477		$ 37,393		$ 28,628		$ 155,810
ADDITIONAL DATA
Net earnings per share - basic	$ 0.50		$ 0.43		$ 0.38		$ 0.29		$ 1.60
Net earnings per share - diluted	$ 0.49		$ 0.42		$ 0.38		$ 0.29		$ 1.59
Dividends declared per share	$ 0.23		$ 0.23		$ 0.23		$ 0.23		$ 0.92
Return on average assets	1.20 %		1.04 %		0.96 %		0.79 %		1.00 %
Return on average shareholders' equity	8.52 %		7.40 %		6.88 %		5.21 %		7.02 %
Interest income	$ 130,029		$ 126,070		$ 129,360		$ 139,504		$ 524,963
Tax equivalent adjustment	1,613		1,628		1,664		1,624		6,529
Interest income - tax equivalent	131,642		127,698		131,024		141,128		531,492
Interest expense	11,556		13,890		17,784		25,222		68,452
Net interest income - tax equivalent	$ 120,086		$ 113,808		$ 113,240		$ 115,906		$ 463,040
Net interest margin	3.45 %		3.32 %		3.38 %		3.71 %		3.46 %
Net interest margin (fully tax equivalent) (1)	3.49 %		3.36 %		3.44 %		3.77 %		3.51 %
Full-time equivalent employees	2,075		2,065		2,076		2,067

(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.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		% Change		% Change
	2021		2021		2021		2021		2020		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$ 220,031		$ 209,748		$ 206,918		$ 210,191		$ 231,054		4.9 %		(4.8) %
Interest-bearing deposits with other banks	214,811		29,799		38,610		19,180		20,305		620.9 %		957.9 %
Investment securities available-for-sale	4,207,846		4,114,094		3,955,839		3,753,763		3,424,580		2.3 %		22.9 %
Investment securities held-to-maturity	98,420		103,886		112,456		121,945		131,687		(5.3) %		(25.3) %
Other investments	102,971		97,831		129,432		131,814		133,198		5.3 %		(22.7) %
Loans held for sale	29,482		33,835		31,546		34,590		41,103		(12.9) %		(28.3) %
Loans and leases
Commercial and industrial	2,720,028		2,602,848		2,701,203		3,044,825		3,007,509		4.5 %		(9.6) %
Lease financing	109,624		67,855		68,229		66,574		72,987		61.6 %		50.2 %
Construction real estate	455,894		477,004		630,329		642,709		636,096		(4.4) %		(28.3) %
Commercial real estate	4,226,614		4,438,374		4,332,561		4,396,582		4,307,858		(4.8) %		(1.9) %
Residential real estate	896,069		922,492		932,112		946,522		1,003,086		(2.9) %		(10.7) %
Home equity	708,399		709,050		711,756		709,667		743,099		(0.1) %		(4.7) %
Installment	119,454		96,077		89,143		82,421		81,850		24.3 %		45.9 %
Credit card	52,217		47,231		46,177		44,669		48,485		10.6 %		7.7 %
Total loans	9,288,299		9,360,931		9,511,510		9,933,969		9,900,970		(0.8) %		(6.2) %
Less:
Allowance for credit losses	(131,992)		(148,903)		(159,590)		(169,923)		(175,679)		(11.4) %		(24.9) %
Net loans	9,156,307		9,212,028		9,351,920		9,764,046		9,725,291		(0.6) %		(5.9) %
Premises and equipment	193,040		192,580		192,238		204,537		207,211		0.2 %		(6.8) %
Operating leases	73,857		0		0		0		0		N/M		N/M
Goodwill	1,000,749		937,771		937,771		937,771		937,771		6.7 %		6.7 %
Other intangibles	88,898		56,811		59,391		61,984		64,552		56.5 %		37.7 %
Accrued interest and other assets	942,729		968,210		1,021,798		935,250		1,056,382		(2.6) %		(10.8) %
Total Assets	$ 16,329,141		$ 15,956,593		$ 16,037,919		$ 16,175,071		$ 15,973,134		2.3 %		2.2 %
LIABILITIES
Deposits
Interest-bearing demand	$ 3,198,745		$ 2,916,860		$ 2,963,151		$ 2,914,761		$ 2,914,787		9.7 %		9.7 %
Savings	4,157,374		4,223,905		4,093,229		4,006,181		3,680,774		(1.6) %		12.9 %
Time	1,330,263		1,517,419		1,548,109		1,731,757		1,872,733		(12.3) %		(29.0) %
Total interest-bearing deposits	8,686,382		8,658,184		8,604,489		8,652,699		8,468,294		0.3 %		2.6 %
Noninterest-bearing	4,185,572		4,019,197		3,901,691		3,995,370		3,763,709		4.1 %		11.2 %
Total deposits	12,871,954		12,677,381		12,506,180		12,648,069		12,232,003		1.5 %		5.2 %
Federal funds purchased and securities sold
under agreements to repurchase	51,203		81,850		255,791		181,387		166,594		(37.4) %		(69.3) %
FHLB short-term borrowings	225,000		107,000		217,000		0		0		110.3 %		N/M
Other	20,000		0		0		0		0		N/M		N/M
Total short-term borrowings	296,203		188,850		472,791		181,387		166,594		56.8 %		77.8 %
Long-term debt	409,832		313,230		313,039		583,722		776,202		30.8 %		(47.2) %
Total borrowed funds	706,035		502,080		785,830		765,109		942,796		40.6 %		(25.1) %
Accrued interest and other liabilities	492,210		540,962		476,402		502,951		516,265		(9.0) %		(4.7) %
Total Liabilities	14,070,199		13,720,423		13,768,412		13,916,129		13,691,064		2.5 %		2.8 %
SHAREHOLDERS' EQUITY
Common stock	1,640,358		1,637,065		1,635,470		1,633,137		1,638,947		0.2 %		0.1 %
Retained earnings	837,473		812,082		773,857		745,220		720,429		3.1 %		16.2 %
Accumulated other comprehensive income (loss)	(433)		14,230		30,735		18,101		48,664		(103.0) %		(100.9) %
Treasury stock, at cost	(218,456)		(227,207)		(170,555)		(137,516)		(125,970)		(3.9) %		73.4 %
Total Shareholders' Equity	2,258,942		2,236,170		2,269,507		2,258,942		2,282,070		1.0 %		(1.0) %
Total Liabilities and Shareholders' Equity	$ 16,329,141		$ 15,956,593		$ 16,037,919		$ 16,175,071		$ 15,973,134		2.3 %		2.2 %

 

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages										Year-to-Date Averages
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Dec. 31,
	2021		2021		2021		2021		2020		2021		2020
ASSETS
Cash and due from banks	$ 253,091		$ 245,212		$ 237,964		$ 232,275		$ 228,427		$ 242,201		$ 245,436
Interest-bearing deposits with other banks	166,904		32,400		45,593		46,912		143,884		73,170		78,943
Investment securities	4,343,513		4,189,253		4,130,207		3,782,993		3,403,839		4,113,240		3,212,051
Loans held for sale	24,491		28,365		28,348		29,689		42,402		27,711		34,390
Loans and leases
Commercial and industrial	2,552,686		2,634,306		2,953,185		3,029,716		3,182,749		2,790,733		2,999,223
Lease financing	67,537		67,159		66,124		70,508		74,107		67,822		79,882
Construction real estate	460,588		567,091		630,351		647,655		608,401		575,883		535,740
Commercial real estate	4,391,328		4,413,003		4,372,679		4,339,349		4,313,408		4,379,325		4,317,396
Residential real estate	917,399		937,969		940,600		980,718		1,022,701		943,981		1,043,040
Home equity	709,954		710,794		707,409		726,134		752,425		713,521		764,436
Installment	106,188		93,937		84,768		81,377		83,509		91,642		81,451
Credit card	53,056		50,126		48,501		46,709		48,179		49,617		47,098
Total loans	9,258,736		9,474,385		9,803,617		9,922,166		10,085,479		9,612,524		9,868,266
Less:
Allowance for credit losses	(144,756)		(157,727)		(169,979)		(177,863)		(172,201)		(162,477)		(153,596)
Net loans	9,113,980		9,316,658		9,633,638		9,744,303		9,913,278		9,450,047		9,714,670
Premises and equipment	192,941		193,775		200,558		206,628		208,800		198,425		212,413
Operating leases	801		0		0		0		0		202		0
Goodwill	938,453		937,771		937,771		937,771		937,771		937,943		937,771
Other intangibles	56,120		58,314		60,929		63,529		66,195		59,699		70,600
Accrued interest and other assets	946,123		994,060		940,461		998,554		1,086,390		969,722		1,022,870
Total Assets	$ 16,036,417		$ 15,995,808		$ 16,215,469		$ 16,042,654		$ 16,030,986		$ 16,072,360		$ 15,529,144
LIABILITIES
Deposits
Interest-bearing demand	$ 3,069,416		$ 2,960,388		$ 2,973,930		$ 2,948,682		$ 2,812,748		$ 2,988,359		$ 2,626,252
Savings	4,195,504		4,150,610		4,096,077		3,815,314		3,547,179		4,065,654		3,260,882
Time	1,428,872		1,574,951		1,637,546		1,767,826		1,844,379		1,601,295		2,167,553
Total interest-bearing deposits	8,693,792		8,685,949		8,707,553		8,531,822		8,204,306		8,655,308		8,054,687
Noninterest-bearing	4,191,457		3,981,404		4,003,626		3,840,046		3,720,417		4,005,034		3,310,483
Total deposits	12,885,249		12,667,353		12,711,179		12,371,868		11,924,723		12,660,342		11,365,170
Federal funds purchased and securities sold
under agreements to repurchase	79,382		186,401		194,478		184,483		136,795		160,967		149,036
FHLB short-term borrowings	2,445		63,463		40,846		67,222		7,937		43,371		441,867
Other	654		0		0		0		0		165		0
Total short-term borrowings	82,481		249,864		235,324		251,705		144,732		204,503		590,903
Long-term debt	314,262		313,100		513,790		634,674		1,162,729		442,720		867,798
Total borrowed funds	396,743		562,964		749,114		886,379		1,307,461		647,223		1,458,701
Accrued interest and other liabilities	512,605		504,198		491,489		511,658		542,740		504,988		484,628
Total Liabilities	13,794,597		13,734,515		13,951,782		13,769,905		13,774,924		13,812,553		13,308,499
SHAREHOLDERS' EQUITY
Common stock	1,637,828		1,635,833		1,633,950		1,636,884		1,638,032		1,636,126		1,636,850
Retained earnings	822,500		783,760		754,456		726,351		703,257		772,063		675,503
Accumulated other comprehensive loss	8,542		36,917		25,832		42,253		40,960		28,317		33,228
Treasury stock, at cost	(227,050)		(195,217)		(150,551)		(132,739)		(126,187)		(176,699)		(124,936)
Total Shareholders' Equity	2,241,820		2,261,293		2,263,687		2,272,749		2,256,062		2,259,807		2,220,645
Total Liabilities and Shareholders' Equity	$ 16,036,417		$ 15,995,808		$ 16,215,469		$ 16,042,654		$ 16,030,986		$ 16,072,360		$ 15,529,144

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages												Year-to-Date Averages
		December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities		$ 4,343,513		2.29 %		$ 4,189,253		2.31 %		$ 3,403,839		2.71 %		$ 4,113,240		2.37 %		$ 3,212,051		2.90 %
Interest-bearing deposits with other banks		166,904		0.17 %		32,400		0.28 %		143,884		0.15 %		73,170		0.20 %		78,943		0.35 %
Gross loans (1)		9,283,227		3.96 %		9,502,750		4.03 %		10,127,881		4.18 %		9,640,235		4.00 %		9,902,656		4.36 %
Total earning assets		13,793,644		3.39 %		13,724,403		3.49 %		13,675,604		3.77 %		13,826,645		3.49 %		13,193,650		3.98 %
Nonearning assets
Allowance for credit losses		(144,756)				(157,727)				(172,201)				(162,477)				(153,596)
Cash and due from banks		253,091				245,212				228,427				242,201				245,436
Accrued interest and other assets		2,134,438				2,183,920				2,299,156				2,165,991				2,243,654
Total assets		$ 16,036,417				$ 15,995,808				$ 16,030,986				$ 16,072,360				$ 15,529,144
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$ 3,069,416		0.06 %		$ 2,960,388		0.06 %		$ 2,812,748		0.08 %		$ 2,988,359		0.06 %		$ 2,626,252		0.17 %
Savings		4,195,504		0.09 %		4,150,610		0.09 %		3,547,179		0.15 %		4,065,654		0.10 %		3,260,882		0.22 %
Time		1,428,872		0.48 %		1,574,951		0.49 %		1,844,379		0.86 %		1,601,295		0.52 %		2,167,553		1.39 %
Total interest-bearing deposits		8,693,792		0.14 %		8,685,949		0.15 %		8,204,306		0.29 %		8,655,308		0.17 %		8,054,687		0.52 %
Borrowed funds
Short-term borrowings		82,481		0.05 %		249,864		0.11 %		144,732		0.08 %		204,503		0.10 %		590,903		1.09 %
Long-term debt		314,262		5.01 %		313,100		5.10 %		1,162,729		1.91 %		442,720		3.72 %		867,798		2.31 %
Total borrowed funds		396,743		3.98 %		562,964		2.88 %		1,307,461		1.71 %		647,223		2.57 %		1,458,701		1.82 %
Total interest-bearing liabilities		9,090,535		0.31 %		9,248,913		0.32 %		9,511,767		0.48 %		9,302,531		0.33 %		9,513,388		0.72 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		4,191,457				3,981,404				3,720,417				4,005,034				3,310,483
Other liabilities		512,605				504,198				542,740				504,988				484,628
Shareholders' equity		2,241,820				2,261,293				2,256,062				2,259,807				2,220,645
Total liabilities & shareholders' equity		$ 16,036,417				$ 15,995,808				$ 16,030,986				$ 16,072,360				$ 15,529,144
Net interest income		$ 110,806				$ 113,410				$ 118,473				$ 452,118				$ 456,511
Net interest spread				3.08 %				3.17 %				3.29 %				3.16 %				3.26 %
Net interest margin				3.19 %				3.28 %				3.45 %				3.27 %				3.46 %
Tax equivalent adjustment				0.04 %				0.04 %				0.04 %				0.04 %				0.05 %
Net interest margin (fully tax equivalent)				3.23 %				3.32 %				3.49 %				3.31 %				3.51 %

(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						Year-to-Date Income Variance
		Rate		Volume		Total		Rate		Volume		Total		Rate		Volume		Total
Earning assets
Investment securities		$ (142)		$ 892		$ 750		$ (3,555)		$ 5,434		$ 1,879		$ (16,865)		$ 21,369		$ 4,504
Interest-bearing deposits with other banks		(9)		57		48		6		10		16		(116)		(12)		(128)
Gross loans (2)		(1,554)		(2,192)		(3,746)		(5,618)		(8,433)		(14,051)		(35,627)		(10,495)		(46,122)
Total earning assets		(1,705)		(1,243)		(2,948)		(9,167)		(2,989)		(12,156)		(52,608)		10,862		(41,746)
Interest-bearing liabilities
Total interest-bearing deposits		$ (234)		$ 3		$ (231)		$ (3,005)		$ 174		$ (2,831)		$ (28,489)		$ 1,002		$ (27,487)
Borrowed funds
Short-term borrowings		(38)		(20)		(58)		(12)		(8)		(20)		(5,870)		(374)		(6,244)
Long-term debt		(70)		15		(55)		9,075		(10,713)		(1,638)		12,188		(15,810)		(3,622)
Total borrowed funds		(108)		(5)		(113)		9,063		(10,721)		(1,658)		6,318		(16,184)		(9,866)
Total interest-bearing liabilities		(342)		(2)		(344)		6,058		(10,547)		(4,489)		(22,171)		(15,182)		(37,353)
Net interest income (1)		$ (1,363)		$ (1,241)		$ (2,604)		$ (15,225)		$ 7,558		$ (7,667)		$ (30,437)		$ 26,044		$ (4,393)

(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)
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Full Year		Full Year
	2021		2021		2021		2021		2020		2021		2020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$ 148,903		$ 159,590		$ 169,923		$ 175,679		$ 168,544		$ 175,679		$ 57,650
Day one adoption impact of ASC 326	0		0		0		0		0		0		61,505
Purchase accounting  ACL for PCD	17		0		0		0		0		17		0
Provision for credit losses	(9,525)		(8,193)		(4,756)		3,450		13,758		(19,024)		70,796
Gross charge-offs
Commercial and industrial	1,364		2,617		3,729		7,910		1,505		15,620		5,345
Lease financing	0		0		0		0		0		0		852
Construction real estate	1,496		0		0		2		0		1,498		0
Commercial real estate	9,150		1,030		2,041		1,250		6,270		13,471		12,100
Residential real estate	6		74		46		1		203		127		488
Home equity	22		200		240		611		386		1,073		1,541
Installment	184		37		77		36		21		334		148
Credit card	149		230		179		222		169		780		885
Total gross charge-offs	12,371		4,188		6,312		10,032		8,554		32,903		21,359
Recoveries
Commercial and industrial	201		869		205		337		367		1,612		2,907
Lease financing	0		0		0		0		(6)		0		0
Construction real estate	0		0		3		0		3		3		17
Commercial real estate	4,292		223		75		195		844		4,785		2,262
Residential real estate	74		56		54		44		145		228		381
Home equity	303		426		317		177		428		1,223		1,132
Installment	27		53		37		34		65		151		158
Credit card	71		67		44		39		85		221		230
Total recoveries	4,968		1,694		735		826		1,931		8,223		7,087
Total net charge-offs	7,403		2,494		5,577		9,206		6,623		24,680		14,272
Ending allowance for credit losses	$ 131,992		$ 148,903		$ 159,590		$ 169,923		$ 175,679		$ 131,992		$ 175,679
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.18 %		0.26 %		0.48 %		1.01 %		0.14 %		0.50 %		0.08 %
Lease financing	0.00 %		0.00 %		0.00 %		0.00 %		0.03 %		0.00 %		1.07 %
Construction real estate	1.29 %		0.00 %		0.00 %		0.00 %		0.00 %		0.26 %		0.00 %
Commercial real estate	0.44 %		0.07 %		0.18 %		0.10 %		0.50 %		0.20 %		0.23 %
Residential real estate	(0.03) %		0.01 %		0.00 %		(0.02) %		0.02 %		(0.01) %		0.01 %
Home equity	(0.16) %		(0.13) %		(0.04) %		0.24 %		(0.02) %		(0.02) %		0.05 %
Installment	0.59 %		(0.07) %		0.19 %		0.01 %		(0.21) %		0.20 %		(0.01) %
Credit card	0.58 %		1.29 %		1.12 %		1.59 %		0.69 %		1.13 %		1.39 %
Total net charge-offs	0.32 %		0.10 %		0.23 %		0.38 %		0.26 %		0.26 %		0.14 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$ 17,362		$ 15,160		$ 27,426		$ 24,941		$ 29,230		$ 17,362		$ 29,230
Lease financing	203		0		16		0		0		203		0
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	19,512		38,564		45,957		44,514		34,682		19,512		34,682
Residential real estate	8,305		9,416		9,480		11,359		11,601		8,305		11,601
Home equity	2,922		2,735		3,376		4,286		5,076		2,922		5,076
Installment	88		91		115		146		163		88		163
Nonaccrual loans	48,392		65,966		86,370		85,246		80,752		48,392		80,752
Accruing troubled debt restructurings (TDRs)	11,616		11,448		12,070		11,608		7,099		11,616		7,099
Total nonperforming loans	60,008		77,414		98,440		96,854		87,851		60,008		87,851
Other real estate owned (OREO)	98		340		340		854		1,287		98		1,287
Total nonperforming assets	60,106		77,754		98,780		97,708		89,138		60,106		89,138
Accruing loans past due 90 days or more	137		104		155		92		169		137		169
Total underperforming assets	$ 60,243		$ 77,858		$ 98,935		$ 97,800		$ 89,307		$ 60,243		$ 89,307
Total classified assets	$ 104,815		$ 165,462		$ 182,516		$ 196,782		$ 142,021		$ 104,815		$ 142,021
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	272.76 %		225.73 %		184.77 %		199.33 %		217.55 %		272.76 %		217.55 %
Nonperforming loans	219.96 %		192.35 %		162.12 %		175.44 %		199.97 %		219.96 %		199.97 %
Total ending loans	1.42 %		1.59 %		1.68 %		1.71 %		1.77 %		1.42 %		1.77 %
Nonperforming loans to total loans	0.65 %		0.83 %		1.03 %		0.97 %		0.89 %		0.65 %		0.89 %
Nonaccrual loans to total loans	0.52 %		0.70 %		0.91 %		0.86 %		0.82 %		0.52 %		0.82 %
Nonperforming assets to
Ending loans, plus OREO	0.65 %		0.83 %		1.04 %		0.98 %		0.90 %		0.65 %		0.90 %
Total assets	0.37 %		0.49 %		0.62 %		0.60 %		0.56 %		0.37 %		0.56 %
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.52 %		0.71 %		0.91 %		0.87 %		0.83 %		0.52 %		0.83 %
Total assets	0.30 %		0.42 %		0.54 %		0.53 %		0.51 %		0.30 %		0.51 %
Classified assets to total assets	0.64 %		1.04 %		1.14 %		1.22 %		0.89 %		0.64 %		0.89 %

(1)  Nonaccrual loans include nonaccrual TDRs of $16.0 million, $20.3 million, $21.5 million, $20.9 million, and $14.7 million, as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

 

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
											Twelve months ended,
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2021		2021		2021		2021		2020		2021		2020
PER COMMON SHARE
Market Price
High	$ 25.79		$ 24.06		$ 26.02		$ 26.40		$ 17.77		$ 26.40		$ 25.52
Low	$ 22.89		$ 21.48		$ 23.35		$ 17.62		$ 12.07		$ 17.62		$ 11.40
Close	$ 24.38		$ 23.41		$ 23.63		$ 24.00		$ 17.53		$ 24.38		$ 17.53
Average shares outstanding - basic	92,903,900		94,289,097		96,123,645		96,873,940		97,253,787		95,034,690		97,363,952
Average shares outstanding - diluted	93,761,909		95,143,930		97,009,712		97,727,527		98,020,534		95,897,385		98,093,098
Ending shares outstanding	94,149,240		93,742,797		96,199,509		97,517,693		98,021,929		94,149,240		98,021,929
Total shareholders' equity	$ 2,258,942		$ 2,236,170		$ 2,269,507		$ 2,258,942		$ 2,282,070		$ 2,258,942		$ 2,282,070
REGULATORY CAPITAL	Preliminary										Preliminary
Common equity tier 1 capital	$ 1,262,789		$ 1,316,059		$ 1,333,209		$ 1,334,882		$ 1,325,922		$ 1,262,789		$ 1,325,922
Common equity tier 1 capital ratio	10.84 %		11.54 %		11.78 %		11.81 %		11.82 %		10.84 %		11.82 %
Tier 1 capital	$ 1,306,571		$ 1,359,297		$ 1,376,333		$ 1,377,892		$ 1,368,818		$ 1,306,571		$ 1,368,818
Tier 1 ratio	11.22 %		11.92 %		12.16 %		12.19 %		12.20 %		11.22 %		12.20 %
Total capital	$ 1,642,549		$ 1,706,513		$ 1,732,930		$ 1,741,755		$ 1,744,802		$ 1,642,549		$ 1,744,802
Total capital ratio	14.10 %		14.97 %		15.31 %		15.41 %		15.55 %		14.10 %		15.55 %
Total capital in excess of minimum requirement	$ 419,743		$ 509,536		$ 544,478		$ 554,834		$ 566,795		$ 419,743		$ 566,795
Total risk-weighted assets	$ 11,645,769		$ 11,399,782		$ 11,318,590		$ 11,304,012		$ 11,219,114		$ 11,645,769		$ 11,219,114
Leverage ratio	8.70 %		9.05 %		9.14 %		9.34 %		9.55 %		8.70 %		9.55 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	13.83 %		14.01 %		14.15 %		13.97 %		14.29 %		13.83 %		14.29 %
Ending tangible shareholders' equity to ending tangible assets (1)	7.58 %		8.21 %		8.37 %		8.22 %		8.47 %		7.58 %		8.47 %
Average shareholders' equity to average assets	13.98 %		14.14 %		13.96 %		14.17 %		14.07 %		14.06 %		14.30 %
Average tangible shareholders' equity to average tangible assets (1)	8.20 %		8.35 %		8.23 %		8.38 %		8.26 %		8.29 %		8.28 %
REPURCHASE PROGRAM (2)
Shares repurchased	0		2,484,295		1,308,945		840,115		0		4,633,355		880,000
Average share repurchase price	N/A		$ 23.04		$ 25.11		$ 21.40		N/A		$ 23.33		$ 18.96
Total cost of shares repurchased	N/A		$ 57,231		$ 32,864		$ 17,982		N/A		$ 108,077		$ 16,686

(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

 

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SOURCE First Financial Bancorp.

FAQ

What were First Financial Bancorp's Q4 2021 earnings?

First Financial Bancorp reported Q4 2021 earnings per diluted share of $0.50, with adjusted earnings of $0.58.

What is the status of First Financial Bancorp's dividend?

The company announced a quarterly dividend of $0.23 per share for the next payment scheduled on March 15, 2022.

What was the net income for FFBC in Q4 2021?

First Financial Bancorp's net income for Q4 2021 was $46.9 million, which is a decrease from $60.0 million in Q3 2021.

What acquisition did First Financial Bancorp close recently?

First Financial Bancorp closed the acquisition of Summit Funding Group during Q4 2021.

How did First Financial Bancorp perform regarding loan growth?

The company reported a core loan growth of $148.8 million, or 6.3% annualized, excluding declines in PPP loans.