First Financial Bancorp Announces Fourth Quarter and Full Year 2022 Financial Results and Quarterly Dividend

Rhea-AI Summary

First Financial Bancorp (FFBC) reported strong financial results for Q4 2022, achieving net income of $69.1 million or $0.73 per diluted share, up from $55.7 million or $0.59 per share in Q3 2022. The company's return on average assets improved to 1.63%, with a net interest margin of 4.47%, reflecting a 49 basis point increase from the previous quarter. Total loan growth was an impressive $501.5 million, representing a 20.3% annualized increase. First Financial also recorded a 14% rise in annual revenue, totaling $709 million. The board approved a quarterly dividend of $0.23 per share, payable on March 15, 2023.

Positive

• Net income increased to $69.1 million in Q4 2022, a 24% rise from Q3 2022.
• Return on average assets rose to 1.63%, and return on average tangible common equity reached 29.93%.
• Total loan growth was $501.5 million, or 20.3% annualized growth.
• Record noninterest income of $56.0 million, with significant growth in foreign exchange and leasing income.

Negative

• Total deposit balances declined by $58.0 million, excluding an increase in brokered CDs.
• Noninterest expenses increased to $124.4 million, driven by elevated incentive costs.

• Earnings per diluted share of $0.73
• Return on average assets of 1.63%
• Net interest margin on FTE basis⁽¹⁾ of 4.47%; 49 bp increase from linked quarter
• Loan growth of $501.5 million; 20.3% on an annualized basis
• Record quarterly revenue driven by increase in net interest income and record fee income
• Strong credit quality with net recoveries and declining nonperforming assets

CINCINNATI, Jan. 26, 2023 /PRNewswire/ --  First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and twelve months ended December 31, 2022. 

For the three months ended December 31, 2022, the Company reported net income of $69.1 million, or $0.73 per diluted common share.  These results compare to net income of $55.7 million, or $0.59 per diluted common share, for the third quarter of 2022.  For the twelve months ended December 31, 2022, First Financial had earnings per diluted share of $2.30 compared to $2.14 for the same period in 2021.

Return on average assets for the fourth quarter of 2022 was 1.63% while return on average tangible common equity was 29.93%⁽¹⁾.  These compare to return on average assets of 1.35% and return on average tangible common equity of 22.29%⁽¹⁾ in the third quarter of 2022.

Fourth quarter 2022 highlights include:

• Strong loan growth when compared to linked quarter⁽²⁾
• Loan balances increased $501.5 million compared to the third quarter
• Growth of 20.3% on an annualized basis
• Broad based portfolio growth; Summit contributed $129.7 million of the quarterly growth
    
• Net interest margin of 4.43%, or 4.47% on a fully tax-equivalent basis⁽¹⁾, exceeded expectations
• 49 bp increase to 4.47% from 3.98% in the third quarter due to higher asset yields resulting from higher interest rates
• 96 bp increase in loan yields offset 31 bp increase in cost of deposits
• Stable core deposit balances; $58.0 million decline in total deposit balances, excluding $319.3 million increase in brokered CD's
    
• Record noninterest income of $56.0 million, or $55.1 million as adjusted⁽¹⁾
• Record foreign exchange income of $19.6 million; 66.7% increase from third quarter
• Record leasing business income of $11.1 million; 56.1% increase from third quarter
• Adjusted⁽¹⁾ for $0.9 million gain on investment securities

⁽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 December 31, 2022, September 30, 2022, June 30, 2022, 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.  These fair value measurements are considered final as of December 31, 2022.

• Noninterest expenses of $124.4 million, or $117.3 million as adjusted⁽¹⁾
• Adjustments⁽¹⁾ include $6.4 million tax credit investment writedown and $0.7 million of other costs not expected to recur such as acquisition, severance and branch consolidation costs
• Increase driven by elevated incentive costs tied to record foreign exchange income during the period
• $2.5 million contribution to First Financial Foundation
• Efficiency ratio of 58.2%; 55.1% as adjusted⁽¹⁾
    
• Total Allowance for Credit Losses of $151.4 million; Total quarterly provision expense of $10.0 million
• Loans and leases - ACL of $133.0 million; increased 2 bps to 1.29% of total loans
• Unfunded Commitments - ACL of $18.4 million
• Provision expense driven by loan growth and slower prepayment speeds
• Net recoveries of 1 bp of average loans and leases
• Nonperforming assets declined 16% compared to the linked quarter to 23 bps of total assets
    
• Regulatory capital ratios remain in excess of internal targets
• Total capital ratio of 13.64%
• Tier 1 common equity increased 1 bps to 10.83%
• Tangible common equity increased 16 bps to 5.95%⁽¹⁾; 8.20%⁽¹⁾ excluding impact from AOCI
• Tangible book value per share of $9.97⁽¹⁾

Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on March 15, 2023 to shareholders of record as of March 1, 2023.

Archie Brown, President and CEO, commented on the quarter, "I am extremely pleased with our fourth quarter performance, which was exceptional on many levels.  Earnings per diluted share were $0.73, return on assets was 1.63% and our adjusted⁽¹⁾ efficiency ratio improved to 55%.  Diluted earnings per common share increased 24% from the third quarter, and we achieved record operating revenue of $214 million driven by a 15% increase in net interest income and a 32% increase in fee income.  Rate increases continued to positively impact our asset sensitive balance sheet, with our net interest margin expanding by 49 basis points to 4.47% as increasing asset yields outpaced deposit costs.  The growth in noninterest income was due to record quarters from Bannockburn and Summit, which more than offset softness in mortgage, client derivative fees and service charge income."

Mr. Brown continued, "We were also very pleased with $502 million of broad-based loan growth in the quarter, which is 20.3% on an annualized basis and included a $130 million increase in finance leases at Summit.  We expect loan growth to moderate in the first quarter of 2023 due to seasonal and economic uncertainty.  We experienced modest outflows in personal interest-bearing transaction accounts, however this was offset by seasonal inflows in our public fund and business deposits.  The result was a stable core deposit base and a loan to deposit ratio of 81%."

Mr. Brown continued, "Loan quality remained strong across our portfolio, with nonperforming assets declining by 16% to 23 basis points of total assets and 1 basis point of net recoveries for the period.  Our ACL to total loan coverage increased slightly during the fourth quarter due to slowing prepayments and the general outlook for the U.S. economy."

Mr. Brown discussed full year results, "2022 was a great year for First Financial.  Adjusted⁽¹⁾ earnings per share of $2.36 was a record, and increased 3% compared to 2021, resulting in a 1.36% adjusted⁽¹⁾ return on assets and an adjusted⁽¹⁾ efficiency ratio of 60%.  Revenue increased 14% compared to the prior year to $709 million, which was a record for our Company.  Net interest income grew by 15% with short-term rate increases providing a catalyst, while record fee income increased by 11% for the year as our acquisition of Summit Funding drove new fees and Bannockburn revenue grew by 23% to a record $55 million.  Our recent acquisitions have diversified our income sources as we intended, and we are very pleased that they effectively insulated the Company from much of the fee pressure that impacted the broader industry in 2022."

Mr. Brown continued, "Loan growth exceeded $1 billion for the year, representing an 11% increase from 2021.  We were pleased that the growth was broad-based, and included strong contributions from Summit Funding, which we acquired at the end of 2021.  Summit's originations exceeded $400 million for the year, which was an all time high for them and surpassed our expectations, contributing over 20% of the Company's overall loan growth."

Mr. Brown commented on asset quality, "Asset Quality was very strong for the year.  Net Charge-offs were 6 basis points of total loans, which was a 20 basis point decline compared to 26 basis points in 2021.  In addition, nonperforming assets declined $20 million, or 34%, to 23 basis points of total assets."

Mr. Brown concluded, "The outstanding performance we achieved this year is the direct result of our associates executing at a very high level.  I want to thank them for their commitment to our clients, our communities and each other.  While we are proud of our 2022 financial results, we believe we have further opportunity to improve our execution and are committed to doing so.  As we look forward to 2023, we remain focused on delivering consistent, sustained, industry leading results."

Full detail of the Company's fourth quarter and full year 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, January 27, 2023 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 329103.  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 347122.  The recording will be available until February 10, 2023.  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 December 31, 2022, the Company had $17.0 billion in assets, $10.3 billion in loans, $12.7 billion in deposits and $2.0 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 $3.2 billion in assets under management as of December 31, 2022.  The Company operated 132 full service banking centers as of December 31, 2022, located 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,		Dec. 31,
	2022		2022		2022		2022		2021		2022		2021
RESULTS OF OPERATIONS
Net income	$        69,086		$        55,705		$         51,520		$         41,301		$         46,945		$       217,612		$       205,160
Net earnings per share - basic	$            0.74		$            0.60		$             0.55		$             0.44		$             0.51		$             2.33		$             2.16
Net earnings per share - diluted	$            0.73		$            0.59		$             0.55		$             0.44		$             0.50		$             2.30		$             2.14
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	1.63 %		1.35 %		1.28 %		1.03 %		1.16 %		1.33 %		1.28 %
Return on average shareholders' equity	13.64 %		10.58 %		9.84 %		7.53 %		8.31 %		10.34 %		9.08 %
Return on average tangible shareholders' equity (1)	29.93 %		22.29 %		20.68 %		14.93 %		15.11 %		21.62 %		16.43 %
Net interest margin	4.43 %		3.93 %		3.41 %		3.11 %		3.19 %		3.73 %		3.27 %
Net interest margin (fully tax equivalent) (1)(2)	4.47 %		3.98 %		3.45 %		3.16 %		3.23 %		3.77 %		3.31 %
Ending shareholders' equity as a percent of ending assets	12.01 %		12.00 %		12.74 %		13.35 %		13.83 %		12.01 %		13.83 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	5.95 %		5.79 %		6.40 %		6.95 %		7.58 %		5.95 %		7.58 %
Risk-weighted assets (1)	7.32 %		7.21 %		8.09 %		8.85 %		9.91 %		7.32 %		9.91 %
Average shareholders' equity as a percent of average assets	11.98 %		12.75 %		12.97 %		13.75 %		13.98 %		12.85 %		14.06 %
Average tangible shareholders' equity as a percent of
average tangible assets (1)	5.84 %		6.49 %		6.62 %		7.44 %		8.20 %		6.59 %		8.29 %
Book value per share	$           21.51		$           21.03		$           21.90		$           22.63		$           23.99		$           21.51		$           23.99
Tangible book value per share (1)	$             9.97		$             9.48		$           10.27		$           10.97		$           12.26		$             9.97		$           12.26
Common equity tier 1 ratio (3)	10.83 %		10.82 %		10.91 %		10.87 %		10.85 %		10.83 %		10.85 %
Tier 1 ratio (3)	11.17 %		11.17 %		11.28 %		11.24 %		11.22 %		11.17 %		11.22 %
Total capital ratio (3)	13.64 %		13.73 %		13.94 %		13.97 %		14.11 %		13.64 %		14.11 %
Leverage ratio (3)	8.89 %		8.88 %		8.76 %		8.64 %		8.70 %		8.89 %		8.70 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$  10,059,119		$   9,597,197		$    9,367,820		$    9,266,774		$    9,283,227		$    9,574,965		$    9,640,235
Investment securities	3,705,304		4,003,472		4,118,287		4,308,059		4,343,513		4,032,046		4,113,240
Interest-bearing deposits with other banks	372,054		317,146		294,136		273,763		166,904		314,552		73,170
Total earning assets	$  14,136,477		$  13,917,815		$  13,780,243		$  13,848,596		$  13,793,644		$  13,921,563		$  13,826,645
Total assets	$  16,767,598		$  16,385,989		$  16,185,978		$  16,184,919		$  16,036,417		$  16,382,730		$  16,072,360
Noninterest-bearing deposits	$    4,225,192		$    4,176,242		$    4,224,842		$    4,160,175		$    4,191,457		$    4,196,735		$    4,005,034
Interest-bearing deposits	8,407,114		8,194,781		8,312,876		8,623,800		8,693,792		8,383,529		8,655,308
Total deposits	$  12,632,306		$  12,371,023		$  12,537,718		$  12,783,975		$  12,885,249		$  12,580,264		$  12,660,342
Borrowings	$    1,489,088		$    1,406,718		$    1,079,596		$       721,695		$       396,743		$    1,177,013		$       647,223
Shareholders' equity	$    2,009,564		$    2,089,179		$    2,099,670		$    2,225,495		$    2,241,820		$    2,105,339		$    2,259,807
CREDIT QUALITY RATIOS
Allowance to ending loans	1.29 %		1.27 %		1.25 %		1.34 %		1.42 %		1.29 %		1.42 %
Allowance to nonaccrual loans	464.58 %		341.61 %		302.87 %		273.09 %		272.76 %		464.58 %		272.76 %
Allowance to nonperforming loans	335.94 %		262.09 %		235.08 %		231.98 %		219.96 %		335.94 %		219.96 %
Nonperforming loans to total loans	0.38 %		0.48 %		0.53 %		0.58 %		0.65 %		0.38 %		0.65 %
Nonaccrual loans to total loans	0.28 %		0.37 %		0.41 %		0.49 %		0.52 %		0.28 %		0.52 %
Nonperforming assets to ending loans, plus OREO	0.39 %		0.48 %		0.53 %		0.58 %		0.65 %		0.39 %		0.65 %
Nonperforming assets to total assets	0.23 %		0.28 %		0.31 %		0.33 %		0.37 %		0.23 %		0.37 %
Classified assets to total assets	0.75 %		0.69 %		0.74 %		0.67 %		0.64 %		0.75 %		0.64 %
Net charge-offs to average loans (annualized)	(0.01) %		0.07 %		0.08 %		0.10 %		0.32 %		0.06 %		0.26 %

(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, 2022 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,
	Dec. 31,						Dec. 31,
	2022		2021		% Change		2022		2021		% Change
Interest income
Loans and leases, including fees	$     152,299		$       92,682		64.3 %		$     458,742		$     385,535		19.0 %
Investment securities
Taxable	30,248		20,993		44.1 %		102,314		79,212		29.2 %
Tax-exempt	4,105		4,127		(0.5) %		18,466		18,323		0.8 %
Total investment securities interest	34,353		25,120		36.8 %		120,780		97,535		23.8 %
Other earning assets	3,262		71		N/M		5,484		147		N/M
Total interest income	189,914		117,873		61.1 %		585,006		483,217		21.1 %
Interest expense
Deposits	16,168		3,089		423.4 %		28,140		14,435		94.9 %
Short-term borrowings	11,091		10		N/M		19,132		198		N/M
Long-term borrowings	4,759		3,968		19.9 %		18,591		16,466		12.9 %
Total interest expense	32,018		7,067		353.1 %		65,863		31,099		111.8 %
Net interest income	157,896		110,806		42.5 %		519,143		452,118		14.8 %
Provision for credit losses-loans and leases	8,689		(9,525)		(191.2) %		6,731		(19,024)		(135.4) %
Provision for credit losses-unfunded commitments	1,341		1,799		(25.5) %		4,982		903		451.7 %
Net interest income after provision for credit losses	147,866		118,532		24.7 %		507,430		470,239		7.9 %
Noninterest income
Service charges on deposit accounts	6,406		8,645		(25.9) %		28,062		31,876		(12.0) %
Trust and wealth management fees	5,648		6,038		(6.5) %		23,506		23,780		(1.2) %
Bankcard income	3,736		3,602		3.7 %		14,380		14,300		0.6 %
Client derivative fees	1,822		2,303		(20.9) %		5,441		7,927		(31.4) %
Foreign exchange income	19,592		12,808		53.0 %		54,965		44,793		22.7 %
Leasing business income	11,124		0		100.0 %		31,574		0		100.0 %
Net gains from sales of loans	2,206		6,492		(66.0) %		15,048		33,021		(54.4) %
Net gain (loss) on sale of investment securities	(393)		(14)		N/M		(569)		(759)		(25.0) %
Net gain (loss) on equity  securities	1,315		321		309.7 %		(639)		702		(191.0) %
Other	4,579		5,465		(16.2) %		17,873		15,866		12.6 %
Total noninterest income	56,035		45,660		22.7 %		189,641		171,506		10.6 %
Noninterest expenses
Salaries and employee benefits	73,621		62,170		18.4 %		269,368		245,924		9.5 %
Net occupancy	5,434		5,332		1.9 %		22,208		22,142		0.3 %
Furniture and equipment	3,234		3,161		2.3 %		13,224		13,819		(4.3) %
Data processing	8,567		8,261		3.7 %		33,662		31,363		7.3 %
Marketing	2,198		2,152		2.1 %		8,744		7,983		9.5 %
Communication	690		677		1.9 %		2,683		2,930		(8.4) %
Professional services	3,015		5,998		(49.7) %		9,734		11,676		(16.6) %
State intangible tax	974		651		49.6 %		4,285		4,256		0.7 %
FDIC assessments	2,173		1,453		49.6 %		7,194		5,630		27.8 %
Intangible amortization	2,573		2,401		7.2 %		11,185		9,839		13.7 %
Leasing business expense	6,061		0		100.0 %		20,363		0		100.0 %
Other	15,902		17,349		(8.3) %		52,699		45,250		16.5 %
Total noninterest expenses	124,442		109,605		13.5 %		455,349		400,812		13.6 %
Income before income taxes	79,459		54,587		45.6 %		241,722		240,933		0.3 %
Income tax expense (benefit)	10,373		7,642		35.7 %		24,110		35,773		(32.6) %
Net income	$       69,086		$       46,945		47.2 %		$     217,612		$     205,160		6.1 %
ADDITIONAL DATA
Net earnings per share - basic	$          0.74		$          0.51				$          2.33		$          2.16
Net earnings per share - diluted	$          0.73		$          0.50				$          2.30		$          2.14
Dividends declared per share	$          0.23		$          0.23				$          0.92		$          0.92
Return on average assets	1.63 %		1.16 %				1.33 %		1.28 %
Return on average shareholders' equity	13.64 %		8.31 %				10.34 %		9.08 %
Interest income	$     189,914		$     117,873		61.1 %		$     585,006		$     483,217		21.1 %
Tax equivalent adjustment	1,553		1,386		12.0 %		6,357		6,091		4.4 %
Interest income - tax equivalent	191,467		119,259		60.5 %		591,363		489,308		20.9 %
Interest expense	32,018		7,067		353.1 %		65,863		31,099		111.8 %
Net interest income - tax equivalent	$     159,449		$     112,192		42.1 %		$     525,500		$     458,209		14.7 %
Net interest margin	4.43 %		3.19 %				3.73 %		3.27 %
Net interest margin (fully tax equivalent) (1)	4.47 %		3.23 %				3.77 %		3.31 %
Full-time equivalent employees	2,070		1,994

(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)
	2022
	Fourth		Third		Second		First		Year to		% Change
	Quarter		Quarter		Quarter		Quarter		Date		Linked Qtr.
Interest income
Loans and leases, including fees	$   152,299		$ 122,170		$   97,091		$   87,182		$ 458,742		24.7 %
Investment securities
Taxable	30,248		26,331		23,639		22,096		102,314		14.9 %
Tax-exempt	4,105		5,014		4,916		4,431		18,466		(18.1) %
Total investment securities interest	34,353		31,345		28,555		26,527		120,780		9.6 %
Other earning assets	3,262		1,597		505		120		5,484		104.3 %
Total interest income	189,914		155,112		126,151		113,829		585,006		22.4 %
Interest expense
Deposits	16,168		6,386		2,963		2,623		28,140		153.2 %
Short-term borrowings	11,091		6,158		1,566		317		19,132		80.1 %
Long-term borrowings	4,759		4,676		4,612		4,544		18,591		1.8 %
Total interest expense	32,018		17,220		9,141		7,484		65,863		85.9 %
Net interest income	157,896		137,892		117,010		106,345		519,143		14.5 %
Provision for credit losses-loans and leases	8,689		7,898		(4,267)		(5,589)		6,731		10.0 %
Provision for credit losses-unfunded commitments	1,341		386		3,481		(226)		4,982		247.4 %
Net interest income after provision for credit losses	147,866		129,608		117,796		112,160		507,430		14.1 %
Noninterest income
Service charges on deposit accounts	6,406		6,279		7,648		7,729		28,062		2.0 %
Trust and wealth management fees	5,648		5,487		6,311		6,060		23,506		2.9 %
Bankcard income	3,736		3,484		3,823		3,337		14,380		7.2 %
Client derivative fees	1,822		1,447		1,369		803		5,441		25.9 %
Foreign exchange income	19,592		11,752		13,470		10,151		54,965		66.7 %
Leasing business income	11,124		7,127		7,247		6,076		31,574		56.1 %
Net gains from sales of loans	2,206		3,729		5,241		3,872		15,048		(40.8) %
Net gain (loss) on sale of investment securities	(393)		(179)		0		3		(569)		119.6 %
Net gain (loss) on equity securities	1,315		(701)		(1,054)		(199)		(639)		287.6 %
Other	4,579		4,109		5,723		3,462		17,873		11.4 %
Total noninterest income	56,035		42,534		49,778		41,294		189,641		31.7 %
Noninterest expenses
Salaries and employee benefits	73,621		66,808		64,992		63,947		269,368		10.2 %
Net occupancy	5,434		5,669		5,359		5,746		22,208		(4.1) %
Furniture and equipment	3,234		3,222		3,201		3,567		13,224		0.4 %
Data processing	8,567		8,497		8,334		8,264		33,662		0.8 %
Marketing	2,198		2,523		2,323		1,700		8,744		(12.9) %
Communication	690		657		670		666		2,683		5.0 %
Professional services	3,015		2,346		2,214		2,159		9,734		28.5 %
State intangible tax	974		1,090		1,090		1,131		4,285		(10.6) %
FDIC assessments	2,173		1,885		1,677		1,459		7,194		15.3 %
Intangible amortization	2,573		2,783		2,915		2,914		11,185		(7.5) %
Leasing business expense	6,061		5,746		4,687		3,869		20,363		5.5 %
Other	15,902		23,842		5,572		7,383		52,699		(33.3) %
Total noninterest expenses	124,442		125,068		103,034		102,805		455,349		(0.5) %
Income before income taxes	79,459		47,074		64,540		50,649		241,722		68.8 %
Income tax expense (benefit)	10,373		(8,631)		13,020		9,348		24,110		(220.2) %
Net income	$     69,086		$   55,705		$   51,520		$   41,301		$ 217,612		24.0 %
ADDITIONAL DATA
Net earnings per share - basic	$         0.74		$       0.60		$       0.55		$       0.44		$       2.33
Net earnings per share - diluted	$         0.73		$       0.59		$       0.55		$       0.44		$       2.30
Dividends declared per share	$         0.23		$       0.23		$       0.23		$       0.23		$       0.92
Return on average assets	1.63 %		1.35 %		1.28 %		1.03 %		1.33 %
Return on average shareholders' equity	13.64 %		10.58 %		9.84 %		7.53 %		10.34 %
Interest income	$   189,914		$ 155,112		$ 126,151		$ 113,829		$ 585,006		22.4 %
Tax equivalent adjustment	1,553		1,712		1,625		1,467		6,357		(9.3) %
Interest income - tax equivalent	191,467		156,824		127,776		115,296		591,363		22.1 %
Interest expense	32,018		17,220		9,141		7,484		65,863		85.9 %
Net interest income - tax equivalent	$   159,449		$ 139,604		$ 118,635		$ 107,812		$ 525,500		14.2 %
Net interest margin	4.43 %		3.93 %		3.41 %		3.11 %		3.73 %
Net interest margin (fully tax equivalent) (1)	4.47 %		3.98 %		3.45 %		3.16 %		3.77 %
Full-time equivalent employees	2,070		2,072		2,096		2,050 (2)

(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 Summit acquisition.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2021
	Fourth		Third		Second		First		Full
	Quarter		Quarter		Quarter		Quarter		Year
Interest income
Loans and leases, including fees	$    92,682		$   96,428		$   97,494		$   98,931		$ 385,535
Investment securities
Taxable	20,993		20,088		19,524		18,607		79,212
Tax-exempt	4,127		4,282		4,871		5,043		18,323
Total investment securities interest	25,120		24,370		24,395		23,650		97,535
Other earning assets	71		23		25		28		147
Total interest income	117,873		120,821		121,914		122,609		483,217
Interest expense
Deposits	3,089		3,320		3,693		4,333		14,435
Short-term borrowings	10		68		53		67		198
Long-term borrowings	3,968		4,023		4,142		4,333		16,466
Total interest expense	7,067		7,411		7,888		8,733		31,099
Net interest income	110,806		113,410		114,026		113,876		452,118
Provision for credit losses-loans and leases	(9,525)		(8,193)		(4,756)		3,450		(19,024)
Provision for credit losses-unfunded commitments	1,799		(1,951)		517		538		903
Net interest income after provision for credit losses	118,532		123,554		118,265		109,888		470,239
Noninterest income
Service charges on deposit accounts	8,645		8,548		7,537		7,146		31,876
Trust and wealth management fees	6,038		5,896		6,216		5,630		23,780
Bankcard income	3,602		3,838		3,732		3,128		14,300
Client derivative fees	2,303		2,273		1,795		1,556		7,927
Foreign exchange income	12,808		9,191		12,037		10,757		44,793
Leasing business income	0		0		0		0		0
Net gains from sales of loans	6,492		8,586		8,489		9,454		33,021
Net gain (loss) on sale of investment securities	(14)		(314)		(265)		(166)		(759)
Net  gain (loss) on equity  securities	321		108		161		112		702
Other	5,465		4,411		3,285		2,705		15,866
Total noninterest income	45,660		42,537		42,987		40,322		171,506
Noninterest expenses
Salaries and employee benefits	62,170		61,717		60,784		61,253		245,924
Net occupancy	5,332		5,571		5,535		5,704		22,142
Furniture and equipment	3,161		3,318		3,371		3,969		13,819
Data processing	8,261		7,951		7,864		7,287		31,363
Marketing	2,152		2,435		2,035		1,361		7,983
Communication	677		669		746		838		2,930
Professional services	5,998		2,199		2,029		1,450		11,676
State intangible tax	651		1,202		1,201		1,202		4,256
FDIC assessments	1,453		1,466		1,362		1,349		5,630
Intangible amortization	2,401		2,479		2,480		2,479		9,839
Leasing business expense	0		0		0		0		0
Other	17,349		10,051		12,236		5,614		45,250
Total noninterest expenses	109,605		99,058		99,643		92,506		400,812
Income before income taxes	54,587		67,033		61,609		57,704		240,933
Income tax expense (benefit)	7,642		7,021		10,721		10,389		35,773
Net income	$    46,945		$   60,012		$   50,888		$   47,315		$ 205,160
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
Tax equivalent adjustment	1,386		1,434		1,619		1,652		6,091
Interest income - tax equivalent	119,259		122,255		123,533		124,261		489,308
Interest expense	7,067		7,411		7,888		8,733		31,099
Net interest income - tax equivalent	$  112,192		$ 114,844		$ 115,645		$ 115,528		$ 458,209
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 STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		% Change		% Change
	2022		2022		2022		2022		2021		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$       207,501		$      195,553		$       217,481		$      214,571		$       220,031		6.1 %		(5.7) %
Interest-bearing deposits with other banks	388,182		338,978		270,042		243,004		214,811		14.5 %		80.7 %
Investment securities available-for-sale	3,409,648		3,531,353		3,843,580		3,957,882		4,207,846		(3.4) %		(19.0) %
Investment securities held-to-maturity	84,021		85,823		88,057		92,597		98,420		(2.1) %		(14.6) %
Other investments	143,160		138,767		132,151		114,563		102,971		3.2 %		39.0 %
Loans held for sale	7,918		10,684		22,044		12,670		29,482		(25.9) %		(73.1) %
Loans and leases
Commercial and industrial	3,410,272		3,139,219		2,927,175		2,800,209		2,720,028		8.6 %		25.4 %
Lease financing	236,124		176,072		146,639		125,867		109,624		34.1 %		115.4 %
Construction real estate	512,050		489,446		449,734		479,744		455,894		4.6 %		12.3 %
Commercial real estate	4,052,759		3,976,345		4,007,037		4,031,484		4,226,614		1.9 %		(4.1) %
Residential real estate	1,092,265		1,024,596		965,387		913,838		896,069		6.6 %		21.9 %
Home equity	733,791		737,318		725,700		707,973		708,399		(0.5) %		3.6 %
Installment	209,895		202,267		146,680		132,197		119,454		3.8 %		75.7 %
Credit card	51,815		52,173		52,065		50,305		52,217		(0.7) %		(0.8) %
Total loans	10,298,971		9,797,436		9,420,417		9,241,617		9,288,299		5.1 %		10.9 %
Less:
Allowance for credit losses	(132,977)		(124,096)		(117,885)		(124,130)		(131,992)		7.2 %		0.7 %
Net loans	10,165,994		9,673,340		9,302,532		9,117,487		9,156,307		5.1 %		11.0 %
Premises and equipment	189,080		189,067		191,099		190,975		193,040		0.0 %		(2.1) %
Operating leases	91,738		84,851		82,659		61,927		60,811		8.1 %		50.9 %
Goodwill	1,001,507		998,422		999,959		999,959		1,000,749		0.3 %		0.1 %
Other intangibles	93,919		96,528		99,019		101,673		104,367		(2.7) %		(10.0) %
Accrued interest and other assets	1,220,648		1,280,427		995,091		901,842		940,306		(4.7) %		29.8 %
Total Assets	$  17,003,316		$ 16,623,793		$  16,243,714		$ 16,009,150		$  16,329,141		2.3 %		4.1 %
LIABILITIES
Deposits
Interest-bearing demand	$    3,037,153		$   2,980,465		$    3,096,365		$   3,246,646		$    3,198,745		1.9 %		(5.1) %
Savings	3,828,139		3,980,020		4,029,717		4,188,867		4,157,374		(3.8) %		(7.9) %
Time	1,700,705		1,242,412		1,026,918		1,121,966		1,330,263		36.9 %		27.8 %
Total interest-bearing deposits	8,565,997		8,202,897		8,153,000		8,557,479		8,686,382		4.4 %		(1.4) %
Noninterest-bearing	4,135,180		4,137,038		4,124,111		4,261,429		4,185,572		0.0 %		(1.2) %
Total deposits	12,701,177		12,339,935		12,277,111		12,818,908		12,871,954		2.9 %		(1.3) %
Federal funds purchased and securities sold
under agreements to repurchase	0		3,535		0		0		51,203		100.0 %		(100.0) %
FHLB short-term borrowings	1,130,000		972,600		896,000		185,000		225,000		16.2 %		402.2 %
Other	157,156		184,912		152,226		57,247		20,000		(15.0) %		685.8 %
Total short-term borrowings	1,287,156		1,161,047		1,048,226		242,247		296,203		10.9 %		334.6 %
Long-term debt	346,672		355,116		358,578		379,840		409,832		(2.4) %		(15.4) %
Total borrowed funds	1,633,828		1,516,163		1,406,804		622,087		706,035		7.8 %		131.4 %
Accrued interest and other liabilities	626,938		773,563		491,129		430,710		492,210		(19.0) %		27.4 %
Total Liabilities	14,961,943		14,629,661		14,175,044		13,871,705		14,070,199		2.3 %		6.3 %
SHAREHOLDERS' EQUITY
Common stock	1,634,605		1,631,696		1,637,237		1,634,903		1,640,358		0.2 %		(0.4) %
Retained earnings	968,237		920,943		887,006		857,178		837,473		5.1 %		15.6 %
Accumulated other comprehensive income (loss)	(358,663)		(354,570)		(243,328)		(142,477)		(433)		1.2 %		N/M
Treasury stock, at cost	(202,806)		(203,937)		(212,245)		(212,159)		(218,456)		(0.6) %		(7.2) %
Total Shareholders' Equity	2,041,373		1,994,132		2,068,670		2,137,445		2,258,942		2.4 %		(9.6) %
Total Liabilities and Shareholders' Equity	$  17,003,316		$ 16,623,793		$  16,243,714		$ 16,009,150		$  16,329,141		2.3 %		4.1 %

 

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,
	2022		2022		2022		2022		2021		2022		2021
ASSETS
Cash and due from banks	$       218,216		$      228,068		$       248,463		$       241,271		$       253,091		$       233,925		$       242,201
Interest-bearing deposits with other banks	372,054		317,146		294,136		273,763		166,904		314,552		73,170
Investment securities	3,705,304		4,003,472		4,118,287		4,308,059		4,343,513		4,032,046		4,113,240
Loans held for sale	8,639		12,283		15,446		15,589		24,491		12,968		27,711
Loans and leases
Commercial and industrial	3,249,252		3,040,547		2,884,373		2,736,613		2,552,686		2,979,273		2,790,733
Lease financing	203,790		158,667		134,334		115,703		67,537		153,380		67,822
Construction real estate	501,787		469,489		460,609		474,278		460,588		476,597		575,883
Commercial real estate	4,028,944		3,969,935		4,025,493		4,139,072		4,391,328		4,040,365		4,379,325
Residential real estate	1,066,859		998,476		936,165		903,567		917,399		976,775		943,981
Home equity	735,039		728,791		716,219		703,714		709,954		721,048		713,521
Installment	208,484		164,063		140,145		125,579		106,188		159,807		91,642
Credit card	56,325		54,946		55,036		52,659		53,056		54,752		49,617
Total loans	10,050,480		9,584,914		9,352,374		9,251,185		9,258,736		9,561,997		9,612,524
Less:
Allowance for credit losses	(127,541)		(119,000)		(123,950)		(129,601)		(144,756)		(125,001)		(162,477)
Net loans	9,922,939		9,465,914		9,228,424		9,121,584		9,113,980		9,436,996		9,450,047
Premises and equipment	189,342		190,738		191,895		192,832		192,941		191,191		198,425
Operating leases	88,365		83,970		73,862		61,297		659		76,967		166
Goodwill	998,575		999,690		999,958		1,000,238		938,453		999,611		937,943
Other intangibles	95,256		97,781		100,354		103,033		71,006		99,081		73,496
Accrued interest and other assets	1,168,908		986,927		915,153		867,253		931,379		985,393		955,961
Total Assets	$  16,767,598		$ 16,385,989		$  16,185,978		$  16,184,919		$  16,036,417		$  16,382,730		$  16,072,360
LIABILITIES
Deposits
Interest-bearing demand	$    3,103,091		$   3,105,547		$    3,180,846		$    3,246,919		$    3,069,416		$    3,158,560		$    2,988,359
Savings	3,943,342		4,036,565		4,076,380		4,145,615		4,195,504		4,049,883		4,065,654
Time	1,360,681		1,052,669		1,055,650		1,231,266		1,428,872		1,175,086		1,601,295
Total interest-bearing deposits	8,407,114		8,194,781		8,312,876		8,623,800		8,693,792		8,383,529		8,655,308
Noninterest-bearing	4,225,192		4,176,242		4,224,842		4,160,175		4,191,457		4,196,735		4,005,034
Total deposits	12,632,306		12,371,023		12,537,718		12,783,975		12,885,249		12,580,264		12,660,342
Federal funds purchased and securities sold
under agreements to repurchase	16,167		32,637		24,229		45,358		79,382		29,526		160,967
FHLB short-term borrowings	944,320		892,786		586,846		257,800		2,445		672,928		43,371
Other	184,439		131,237		109,353		33,297		654		115,041		165
Total short-term borrowings	1,144,926		1,056,660		720,428		336,455		82,481		817,495		204,503
Long-term debt	344,162		350,058		359,168		385,240		314,262		359,518		442,720
Total borrowed funds	1,489,088		1,406,718		1,079,596		721,695		396,743		1,177,013		647,223
Accrued interest and other liabilities	636,640		519,069		468,994		453,754		512,605		520,114		504,988
Total Liabilities	14,758,034		14,296,810		14,086,308		13,959,424		13,794,597		14,277,391		13,812,553
SHAREHOLDERS' EQUITY
Common stock	1,632,941		1,631,078		1,635,990		1,638,321		1,637,828		1,634,558		1,636,126
Retained earnings	941,987		899,524		866,910		841,652		822,500		887,826		772,063
Accumulated other comprehensive loss	(361,284)		(236,566)		(190,949)		(38,448)		8,542		(207,778)		28,317
Treasury stock, at cost	(204,080)		(204,857)		(212,281)		(216,030)		(227,050)		(209,267)		(176,699)
Total Shareholders' Equity	2,009,564		2,089,179		2,099,670		2,225,495		2,241,820		2,105,339		2,259,807
Total Liabilities and Shareholders' Equity	$  16,767,598		$ 16,385,989		$  16,185,978		$  16,184,919		$  16,036,417		$  16,382,730		$  16,072,360

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages																		Year-to-Date Averages
		December 31, 2022						September 30, 2022						December 31, 2021						December 31, 2022				December 31, 2021
		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities		$      3,705,304		$       34,353		3.68 %		$   4,003,472		$      31,345		3.11 %		$   4,343,513		$      25,120		2.29 %		$   4,032,046		3.00 %		$   4,113,240		2.37 %
Interest-bearing deposits with other banks		372,054		3,262		3.48 %		317,146		1,597		2.00 %		166,904		71		0.17 %		314,552		1.74 %		73,170		0.20 %
Gross loans (1)		10,059,119		152,299		6.01 %		9,597,197		122,170		5.05 %		9,283,227		92,682		3.96 %		9,574,965		4.79 %		9,640,235		4.00 %
Total earning assets		14,136,477		189,914		5.33 %		13,917,815		155,112		4.42 %		13,793,644		117,873		3.39 %		13,921,563		4.20 %		13,826,645		3.49 %
Nonearning assets
Allowance for credit losses		(127,541)						(119,000)						(144,756)						(125,001)				(162,477)
Cash and due from banks		218,216						228,068						253,091						233,925				242,201
Accrued interest and other assets		2,540,446						2,359,106						2,134,438						2,352,243				2,165,991
Total assets		$    16,767,598						$ 16,385,989						$ 16,036,417						$ 16,382,730				$ 16,072,360
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$      3,103,091		$        5,195		0.66 %		$   3,105,547		$        2,404		0.31 %		$   3,069,416		$           461		0.06 %		$   3,158,560		0.28 %		$   2,988,359		0.06 %
Savings		3,943,342		4,819		0.48 %		4,036,565		2,199		0.22 %		4,195,504		901		0.09 %		4,049,883		0.22 %		4,065,654		0.10 %
Time		1,360,681		6,154		1.79 %		1,052,669		1,783		0.67 %		1,428,872		1,727		0.48 %		1,175,086		0.88 %		1,601,295		0.52 %
Total interest-bearing deposits		8,407,114		16,168		0.76 %		8,194,781		6,386		0.31 %		8,693,792		3,089		0.14 %		8,383,529		0.34 %		8,655,308		0.17 %
Borrowed funds
Short-term borrowings		1,144,926		11,091		3.84 %		1,056,660		6,158		2.31 %		82,481		10		0.05 %		817,495		2.34 %		204,503		0.10 %
Long-term debt		344,162		4,759		5.49 %		350,058		4,676		5.30 %		314,262		3,968		5.01 %		359,518		5.17 %		442,720		3.72 %
Total borrowed funds		1,489,088		15,850		4.22 %		1,406,718		10,834		3.06 %		396,743		3,978		3.98 %		1,177,013		3.20 %		647,223		2.57 %
Total interest-bearing liabilities		9,896,202		32,018		1.28 %		9,601,499		17,220		0.71 %		9,090,535		7,067		0.31 %		9,560,542		0.69 %		9,302,531		0.33 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		4,225,192						4,176,242						4,191,457						4,196,735				4,005,034
Other liabilities		636,640						519,069						512,605						520,114				504,988
Shareholders' equity		2,009,564						2,089,179						2,241,820						2,105,339				2,259,807
Total liabilities & shareholders' equity		$    16,767,598						$ 16,385,989						$ 16,036,417						$ 16,382,730				$ 16,072,360
Net interest income		$         157,896						$      137,892						$      110,806						$      519,143				$      452,118
Net interest spread						4.05 %						3.71 %						3.08 %				3.51 %				3.16 %
Net interest margin						4.43 %						3.93 %						3.19 %				3.73 %				3.27 %
Tax equivalent adjustment						0.04 %						0.05 %						0.04 %				0.04 %				0.04 %
Net interest margin (fully tax equivalent)						4.47 %						3.98 %						3.23 %				3.77 %				3.31 %
(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		$      5,772		$    (2,764)		$      3,008		$    15,150		$    (5,917)		$      9,233		$    25,677		$    (2,432)		$    23,245
Interest-bearing deposits with other banks		1,184		481		1,665		1,392		1,799		3,191		1,129		4,208		5,337
Gross loans (2)		23,135		6,994		30,129		47,870		11,747		59,617		76,334		(3,127)		73,207
Total earning assets		30,091		4,711		34,802		64,412		7,629		72,041		103,140		(1,351)		101,789
Interest-bearing liabilities
Total interest-bearing deposits		$      9,374		$         408		$      9,782		$    13,630		$       (551)		$    13,079		$    14,617		$       (912)		$    13,705
Borrowed funds
Short-term borrowings		4,078		855		4,933		789		10,292		11,081		4,588		14,346		18,934
Long-term debt		165		(82)		83		378		413		791		6,427		(4,302)		2,125
Total borrowed funds		4,243		773		5,016		1,167		10,705		11,872		11,015		10,044		21,059
Total interest-bearing liabilities		13,617		1,181		14,798		14,797		10,154		24,951		25,632		9,132		34,764
Net interest income (1)		$    16,474		$      3,530		$    20,004		$    49,615		$    (2,525)		$    47,090		$    77,508		$  (10,483)		$    67,025
(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
	2022		2022		2022		2022		2021		2022		2021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$  124,096		$  117,885		$  124,130		$  131,992		$  148,903		$ 131,992		$ 175,679
Purchase accounting  ACL for PCD	0		0		0		0		17		0		17
Provision for credit losses	8,689		7,898		(4,267)		(5,589)		(9,525)		6,731		(19,024)
Gross charge-offs
Commercial and industrial	334		1,947		773		2,845		1,364		5,899		15,620
Lease financing	0		13		8		131		0		152		0
Construction real estate	0		0		0		0		1,496		0		1,498
Commercial real estate	245		3		3,419		0		9,150		3,667		13,471
Residential real estate	79		119		4		22		6		224		127
Home equity	72		45		22		21		22		160		1,073
Installment	717		294		361		177		184		1,549		334
Credit card	212		237		212		246		149		907		780
Total gross charge-offs	1,659		2,658		4,799		3,442		12,371		12,558		32,903
Recoveries
Commercial and industrial	293		90		177		379		201		939		1,612
Lease financing	0		13		3		33		0		49		0
Construction real estate	0		0		0		0		0		0		3
Commercial real estate	1,327		561		2,194		222		4,292		4,304		4,785
Residential real estate	15		35		34		90		74		174		228
Home equity	88		185		360		265		303		898		1,223
Installment	68		29		47		21		27		165		151
Credit card	60		58		6		159		71		283		221
Total recoveries	1,851		971		2,821		1,169		4,968		6,812		8,223
Total net charge-offs	(192)		1,687		1,978		2,273		7,403		5,746		24,680
Ending allowance for credit losses	$  132,977		$  124,096		$  117,885		$  124,130		$  131,992		$ 132,977		$ 131,992
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.01 %		0.24 %		0.08 %		0.37 %		0.18 %		0.17 %		0.50 %
Lease financing	0.00 %		0.00 %		0.01 %		0.34 %		0.00 %		0.07 %		0.00 %
Construction real estate	0.00 %		0.00 %		0.00 %		0.00 %		1.29 %		0.00 %		0.26 %
Commercial real estate	(0.11) %		(0.06) %		0.12 %		(0.02) %		0.44 %		(0.02) %		0.20 %
Residential real estate	0.02 %		0.03 %		(0.01) %		(0.03) %		(0.03) %		0.01 %		(0.01) %
Home equity	(0.01) %		(0.08) %		(0.19) %		(0.14) %		(0.16) %		(0.10) %		(0.02) %
Installment	1.24 %		0.64 %		0.90 %		0.50 %		0.59 %		0.87 %		0.20 %
Credit card	1.07 %		1.29 %		1.50 %		0.67 %		0.58 %		1.14 %		1.13 %
Total net charge-offs	(0.01) %		0.07 %		0.08 %		0.10 %		0.32 %		0.06 %		0.26 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$     8,242		$     8,719		$    11,675		$    14,390		$    17,362		$     8,242		$   17,362
Lease financing	178		199		217		249		203		178		203
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	5,786		13,435		14,650		19,843		19,512		5,786		19,512
Residential real estate	10,691		10,250		8,879		7,432		8,305		10,691		8,305
Home equity	3,123		3,445		3,331		3,377		2,922		3,123		2,922
Installment	603		279		170		163		88		603		88
Nonaccrual loans	28,623		36,327		38,922		45,454		48,392		28,623		48,392
Accruing troubled debt restructurings (TDRs)	10,960		11,022		11,225		8,055		11,616		10,960		11,616
Total nonperforming loans	39,583		47,349		50,147		53,509		60,008		39,583		60,008
Other real estate owned (OREO)	191		22		22		72		98		191		98
Total nonperforming assets	39,774		47,371		50,169		53,581		60,106		39,774		60,106
Accruing loans past due 90 days or more	857		139		142		180		137		857		137
Total underperforming assets	$    40,631		$    47,510		$    50,311		$    53,761		$    60,243		$   40,631		$   60,243
Total classified assets	$  128,137		$  114,956		$  119,769		$  106,839		$  104,815		$ 128,137		$ 104,815
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	464.58 %		341.61 %		302.87 %		273.09 %		272.76 %		464.58 %		272.76 %
Nonperforming loans	335.94 %		262.09 %		235.08 %		231.98 %		219.96 %		335.94 %		219.96 %
Total ending loans	1.29 %		1.27 %		1.25 %		1.34 %		1.42 %		1.29 %		1.42 %
Nonperforming loans to total loans	0.38 %		0.48 %		0.53 %		0.58 %		0.65 %		0.38 %		0.65 %
Nonaccrual loans to total loans	0.28 %		0.37 %		0.41 %		0.49 %		0.52 %		0.28 %		0.52 %
Nonperforming assets to
Ending loans, plus OREO	0.39 %		0.48 %		0.53 %		0.58 %		0.65 %		0.39 %		0.65 %
Total assets	0.23 %		0.28 %		0.31 %		0.33 %		0.37 %		0.23 %		0.37 %
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.28 %		0.37 %		0.41 %		0.49 %		0.52 %		0.28 %		0.52 %
Total assets	0.17 %		0.22 %		0.24 %		0.28 %		0.30 %		0.17 %		0.30 %
Classified assets to total assets	0.75 %		0.69 %		0.74 %		0.67 %		0.64 %		0.75 %		0.64 %

(1)  Nonaccrual loans include nonaccrual TDRs of $10.0 million, $12.8 million, $9.5 million, $16.2 million, and $16.0 million, as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, 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,
	2022		2022		2022		2022		2021		2022		2021
PER COMMON SHARE
Market Price
High	$           26.68		$           23.75		$           23.03		$           26.73		$           25.79		$                         26.73		$                         26.40
Low	$           21.56		$           19.02		$           19.09		$           22.92		$           22.89		$                         19.02		$                         17.62
Close	$           24.23		$           21.08		$           19.40		$           23.05		$           24.38		$                         24.23		$                         24.38
Average shares outstanding - basic	93,590,674		93,582,250		93,555,131		93,383,932		92,903,900		93,528,712		95,034,690
Average shares outstanding - diluted	94,831,788		94,793,766		94,449,817		94,263,925		93,761,909		94,586,851		95,897,385
Ending shares outstanding	94,891,099		94,833,964		94,448,792		94,451,496		94,149,240		94,891,099		94,149,240
Total shareholders' equity	$    2,041,373		$    1,994,132		$    2,068,670		$    2,137,445		$    2,258,942		$                  2,041,373		$                  2,258,942
REGULATORY CAPITAL	Preliminary										Preliminary
Common equity tier 1 capital	$    1,399,420		$    1,348,413		$    1,307,259		$    1,272,115		$    1,262,789		$                  1,399,420		$                  1,262,789
Common equity tier 1 capital ratio	10.83 %		10.82 %		10.91 %		10.87 %		10.85 %		10.83 %		10.85 %
Tier 1 capital	$    1,443,698		$    1,392,565		$    1,351,287		$    1,316,020		$    1,306,571		$                  1,443,698		$                  1,306,571
Tier 1 ratio	11.17 %		11.17 %		11.28 %		11.24 %		11.22 %		11.17 %		11.22 %
Total capital	$    1,762,971		$    1,711,741		$    1,670,367		$    1,635,003		$    1,642,549		$                  1,762,971		$                  1,642,549
Total capital ratio	13.64 %		13.73 %		13.94 %		13.97 %		14.11 %		13.64 %		14.11 %
Total capital in excess of minimum requirement	$       406,032		$       402,662		$       412,167		$       405,931		$       420,118		$  406,032		$ 420,118
Total risk-weighted assets	$  12,923,233		$  12,467,422		$  11,982,860		$  11,705,447		$  11,642,201		$                12,923,233		$                11,642,201
Leverage ratio	8.89 %		8.88 %		8.76 %		8.64 %		8.70 %		8.89 %		8.70 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	12.01 %		12.00 %		12.74 %		13.35 %		13.83 %		12.01 %		13.83 %
Ending tangible shareholders' equity to ending tangible assets (1)	5.95 %		5.79 %		6.40 %		6.95 %		7.58 %		5.95 %		7.58 %
Average shareholders' equity to average assets	11.98 %		12.75 %		12.97 %		13.75 %		13.98 %		12.85 %		14.06 %
Average tangible shareholders' equity to average tangible assets (1)	5.84 %		6.49 %		6.62 %		7.44 %		8.20 %		6.59 %		8.29 %
REPURCHASE PROGRAM (2)
Shares repurchased	0		0		0		0		0		0		4,633,355
Average share repurchase price	N/A		N/A		N/A		N/A		N/A		N/A		$                         23.33
Total cost of shares repurchased	N/A		N/A		N/A		N/A		N/A		N/A		$                     108,077

(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 the earnings per diluted share for FFBC in Q4 2022?

FFBC reported earnings per diluted share of $0.73 for Q4 2022.

How much did FFBC grow its loans in Q4 2022?

First Financial Bancorp experienced loan growth of $501.5 million in Q4 2022, which is a 20.3% annualized increase.

What was the return on average assets for FFBC in Q4 2022?

The return on average assets for FFBC in Q4 2022 was 1.63%.

What was the total revenue for FFBC in 2022?

First Financial Bancorp reported total revenue of $709 million for the year 2022.

When is the next dividend payment for FFBC?

The next dividend payment of $0.23 per share is scheduled for March 15, 2023.