First Financial Bancorp Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

First Financial Bancorp (FFBC) reported a net income of $51.5 million for Q2 2022, translating to earnings per diluted share of $0.55, up from $0.44 in Q1 2022. Adjusted earnings were $0.56 per share. Total loan growth reached $191.4 million, marking an 8.3% annualized increase, with an improved net interest margin of 3.47%. Noninterest income rose 20.6% to $49.8 million, led by strong foreign exchange and leasing business income. Despite an increase in noninterest expenses to $103.2 million, the efficiency ratio stood at 61.8%, reflecting ongoing operational improvements.

Positive

• Earnings per diluted share increased to $0.55, up from $0.44 in Q1 2022.
• Loan growth of $191.4 million, or 8.3% annualized, demonstrates broad-based portfolio expansion.
• Noninterest income rose 20.6% to $49.8 million, boosted by record foreign exchange income.

Negative

• Earnings per diluted share decreased from $1.01 in H1 2021 to $0.98 in H1 2022.
• Noninterest expenses increased to $103.2 million, impacting profitability.
• Anticipated decline in deposit account service charges due to overdraft program changes.

• Earnings per diluted share of $0.55; $0.56 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.28%; 1.31% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 3.47%; 30 bp increase from linked quarter
• Loan growth of $191.4 million, excluding PPP; 8.3% on an annualized basis
• Noninterest income of $49.8 million increased 20.6% from the linked quarter

CINCINNATI, July 21, 2022 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2022. 

For the three months ended June 30, 2022, the Company reported net income of $51.5 million, or $0.55 per diluted common share.  These results compare to net income of $41.3 million, or $0.44 per diluted common share, for the first quarter of 2022.  For the six months ended June 30, 2022, First Financial had earnings per diluted share of $0.98 compared to $1.01 for the same period in 2021.

Return on average assets for the second quarter of 2022 was 1.28% while return on average tangible common equity was 20.68%⁽¹⁾.  These compare to returns on average assets of 1.03% and return on average tangible common equity of 14.93%⁽¹⁾ in the first quarter of 2022.

Second quarter 2022 highlights include:

• Strong loan growth when compared to linked quarter⁽²⁾
• Loan balances increased $178.8 million compared to the first quarter; $191.4 million excluding PPP
• Growth of 7.8% on an annualized basis; 8.3% on an annualized basis excluding PPP
• Broad based portfolio growth, with large increases in C&I and residential real estate portfolios
  
  
• Net interest margin of 3.43%, or 3.47% on a fully tax-equivalent basis⁽¹⁾, exceeded expectations
• 30 bp increase to 3.47% from 3.17% in the first quarter due to higher asset yields resulting from higher interest rates
• 34 bp increase in loan yields offset modest 2 basis point increase in cost of interest bearing deposits

• Noninterest income of $49.8 million, or $50.8 million as adjusted⁽¹⁾
• Record foreign exchange income of $13.5 million; 32.7% increase from the linked quarter
• Leasing business income of $7.2 million; 19.3% increase from the linked quarter
• Wealth management fees remained strong at $6.3 million
• Mortgage banking revenue increased $1.4 million; 35.4% increase from the linked quarter
• Other noninterest income increased $2.3 million; 65.9% increase from the linked quarter driven by investments in limited partnerships
• Adjusted⁽¹⁾ for $1.1 million loss 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 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.

• Noninterest expenses of $103.2 million, or $102.4 million as adjusted⁽¹⁾
• Adjustments⁽¹⁾ include $0.1 million of acquisition related costs and $0.7 million of other costs not expected to recur such as severance and branch consolidation costs
• Slight increase in expenses driven by higher salaries and benefits tied to elevated fee income
• Efficiency ratio of 61.8%; 60.9% as adjusted⁽¹⁾

• Total Allowance for Credit Losses of $134.5 million; Total quarterly provision recapture of $0.8 million
• Loans and leases - ACL of $117.9 million, 1.25% of total loans
• Unfunded Commitments - ACL of $16.7 million
• Provision recapture driven by stable credit quality
• Net charge-offs declined to 8 bps of average loans and leases

• Regulatory capital ratios remain in excess of internal targets
• Total capital ratio of 13.94%
• Tier 1 common equity increased 4 basis points to 10.91%
• Tangible common equity of 6.40%⁽¹⁾; decrease from linked quarter driven by decline in AOCI
• Tangible book value per share of $10.27⁽¹⁾

Archie Brown, President and CEO, commented on the quarter, "I am extremely pleased with our performance in the second quarter.  Earnings improved from the first quarter as our asset sensitive balance sheet was positively impacted by recent rate increases.  In addition, credit quality was stable with lower net charge-offs and nonaccrual loan balances.  This led to a small provision recapture for the quarter." 

Mr. Brown continued, "We were encouraged by our strong fee income performance for the quarter.  Total fee income surpassed our expectations due to record foreign exchange income, strong income from limited partnership investments and growing leasing business income.  While second quarter mortgage banking income increased 35% from the linked quarter, we continue to experience headwinds due to the rapid rise in interest rates.  In addition, recent overdraft program changes led to a modest reduction in deposit account service charges during the second quarter and we expect further decline due to these program changes in the coming periods."

Mr. Brown commented on loan growth, "We were very pleased with loan growth in the second quarter.  Loans (excluding PPP) increased by $191 million, or 8.3%, on an annualized basis.  Loan growth was broad based, with increases in the C&I, retail mortgage and consumer portfolios.  This more than offset a decline in the ICRE portfolio, which was driven by elevated prepayments.  In addition, we were also pleased with Summit's growth in the quarter, including operating leases, which increased $21 million, or 33.5%, during the period.  Loan origination activity remains strong as we head into the third quarter."

Mr. Brown concluded, "I want to thank our associates for their excellent performance so far this year.  As we head into the back half of the year, we are optimistic that our balance sheet is positioned to further benefit from additional rate increases and loan activity remains strong.  We remain diligent in our credit monitoring and are prepared to manage a downturn in the economy should it occur later in the interest rate cycle."

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

Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, July 22, 2022 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (844) 200-6205 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 099625.  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 049791.  The recording will be available until August 5, 2022.  The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at  www.bankatfirst.com.  The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

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

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

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

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

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

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

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

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  As of June 30, 2022, the Company had $16.2 billion in assets, $9.4 billion in loans, $12.3 billion in deposits and $2.1 billion in shareholders' equity.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.0 billion in assets under management as of June 30, 2022.  The Company operated 135 full service banking centers as of June 30, 2022, primarily in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis.  Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,										Six months ended,
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		June 30,
	2022		2022		2021		2021		2021		2022		2021
RESULTS OF OPERATIONS
Net income	$         51,520		$        41,301		$         46,945		$          60,012		$          50,888		$        92,821		$        98,203
Net earnings per share - basic	$             0.55		$            0.44		$             0.51		$              0.64		$              0.53		$            0.99		$            1.02
Net earnings per share - diluted	$             0.55		$            0.44		$             0.50		$              0.63		$              0.52		$            0.98		$            1.01
Dividends declared per share	$             0.23		$            0.23		$             0.23		$              0.23		$              0.23		$            0.46		$            0.46
KEY FINANCIAL RATIOS
Return on average assets	1.28 %		1.03 %		1.16 %		1.49 %		1.26 %		1.16 %		1.23 %
Return on average shareholders' equity	9.84 %		7.53 %		8.31 %		10.53 %		9.02 %		8.66 %		8.73 %
Return on average tangible shareholders' equity (1)	20.68 %		14.93 %		15.11 %		19.03 %		16.31 %		17.65 %		15.78 %
Net interest margin	3.43 %		3.12 %		3.19 %		3.28 %		3.27 %		3.27 %		3.31 %
Net interest margin (fully tax equivalent) (1)(2)	3.47 %		3.17 %		3.23 %		3.32 %		3.31 %		3.32 %		3.35 %
Ending shareholders' equity as a percent of ending assets	12.74 %		13.35 %		13.83 %		14.01 %		14.15 %		12.74 %		14.15 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	6.40 %		6.95 %		7.58 %		8.21 %		8.37 %		6.40 %		8.37 %
Risk-weighted assets (1)	8.09 %		8.85 %		9.91 %		10.76 %		11.12 %		8.09 %		11.12 %
Average shareholders' equity as a percent of average assets	12.97 %		13.75 %		13.98 %		14.14 %		13.96 %		13.36 %		14.06 %
Average tangible shareholders' equity as a percent of
average tangible assets (1)	6.62 %		7.44 %		8.20 %		8.35 %		8.23 %		7.03 %		8.30 %
Book value per share	$           21.90		$          22.63		$          23.99		$           23.85		$            23.59		$          21.90		$          23.59
Tangible book value per share (1)	$           10.27		$          10.97		$          12.26		$           13.09		$            13.08		$          10.27		$          13.08
Common equity tier 1 ratio (3)	10.91 %		10.87 %		10.84 %		11.54 %		11.78 %		10.91 %		11.78 %
Tier 1 ratio (3)	11.28 %		11.24 %		11.22 %		11.92 %		12.16 %		11.28 %		12.16 %
Total capital ratio (3)	13.94 %		13.97 %		14.10 %		14.97 %		15.31 %		13.94 %		15.31 %
Leverage ratio (3)	8.76 %		8.64 %		8.70 %		9.05 %		9.14 %		8.76 %		9.14 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$    9,367,820		$     ,266,774		$    9,283,227		$    9,502,750		$     9,831,965		$    9,317,576		$    9,891,579
Investment securities	4,118,287		4,308,059		4,343,513		4,189,253		4,130,207		4,212,649		3,957,559
Interest-bearing deposits with other banks	236,797		234,687		166,904		32,400		45,593		235,748		46,249
Total earning assets	$  13,722,904		$  13,809,520		$  13,793,644		$  13,724,403		$   14,007,765		$  13,765,973		$  13,895,387
Total assets	$  16,185,978		$  16,184,919		$  16,036,417		$  15,995,808		$   16,215,469		$  16,185,451		$  16,129,539
Noninterest-bearing deposits	$    4,224,842		$    4,160,175		$    4,191,457		$    3,981,404		$     4,003,626		$    4,192,687		$    3,922,288
Interest-bearing deposits	8,312,876		8,623,800		8,693,792		8,685,949		8,707,553		8,467,479		8,620,173
Total deposits	$  12,537,718		$  12,783,975		$  12,885,249		$  12,667,353		$   12,711,179		$  12,660,166		$  12,542,461
Borrowings	$       970,243		$       701,287		$       396,743		$       562,964		$        749,114		$       836,508		$       817,367
Shareholders' equity	$    2,099,670		$    2,225,495		$    2,241,820		$    2,261,293		$     2,263,687		$    2,162,235		$    2,268,193
CREDIT QUALITY RATIOS
Allowance to ending loans	1.25 %		1.34 %		1.42 %		1.59 %		1.68 %		1.25 %		1.68 %
Allowance to nonaccrual loans	302.87 %		273.09 %		272.76 %		225.73 %		184.77 %		302.87 %		184.77 %
Allowance to nonperforming loans	235.08 %		231.98 %		219.96 %		192.35 %		162.12 %		235.08 %		162.12 %
Nonperforming loans to total loans	0.53 %		0.58 %		0.65 %		0.83 %		1.03 %		0.53 %		1.03 %
Nonaccrual loans to total loans	0.41 %		0.49 %		0.52 %		0.70 %		0.91 %		0.41 %		0.91 %
Nonperforming assets to ending loans, plus OREO	0.53 %		0.58 %		0.65 %		0.83 %		1.04 %		0.53 %		1.04 %
Nonperforming assets to total assets	0.31 %		0.33 %		0.37 %		0.49 %		0.62 %		0.31 %		0.62 %
Classified assets to total assets	0.74 %		0.67 %		0.64 %		1.04 %		1.14 %		0.74 %		1.14 %
Net charge-offs to average loans (annualized)	0.08 %		0.10 %		0.32 %		0.10 %		0.23 %		0.09 %		0.30 %

(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)	June 30, 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,						Six months ended,
	June 30,						June 30,
	2022		2021		% Change		2022		2021		% Change
Interest income
Loans and leases, including fees	$       97,091		$       97,494		(0.4) %		$     184,273		$     196,425		(6.2) %
Investment securities
Taxable	23,639		19,524		21.1 %		45,735		38,131		19.9 %
Tax-exempt	4,916		4,871		0.9 %		9,347		9,914		(5.7) %
Total investment securities interest	28,555		24,395		17.1 %		55,082		48,045		14.6 %
Other earning assets	497		25		N/M		618		53		N/M
Total interest income	126,143		121,914		3.5 %		239,973		244,523		(1.9) %
Interest expense
Deposits	2,963		3,693		(19.8) %		5,586		8,026		(30.4) %
Short-term borrowings	1,373		53		N/M		1,690		120		N/M
Long-term borrowings	4,612		4,142		11.3 %		9,156		8,475		8.0 %
Total interest expense	8,948		7,888		13.4 %		16,432		16,621		(1.1) %
Net interest income	117,195		114,026		2.8 %		223,541		227,902		(1.9) %
Provision for credit losses-loans and leases	(4,267)		(4,756)		(10.3) %		(9,856)		(1,306)		N/M
Provision for credit losses-unfunded commitments	3,481		517		N/M		3,255		1,055		208.5 %
Net interest income after provision for credit losses	117,981		118,265		(0.2) %		230,142		228,153		0.9 %
Noninterest income
Service charges on deposit accounts	7,648		7,537		1.5 %		15,377		14,683		4.7 %
Trust and wealth management fees	6,311		6,216		1.5 %		12,371		11,846		4.4 %
Bankcard income	3,823		3,732		2.4 %		7,160		6,860		4.4 %
Client derivative fees	1,353		1,795		(24.6) %		2,152		3,351		(35.8) %
Foreign exchange income	13,470		12,037		11.9 %		23,621		22,794		3.6 %
Leasing business income	7,247		0		100.0 %		13,323		0		100.0 %
Net gains from sales of loans	5,241		8,489		(38.3) %		9,113		17,943		(49.2) %
Net gain (loss) on sale of investment securities	0		(265)		(100.0) %		3		(431)		(100.7) %
Net gain (loss) on equity  securities	(1,054)		161		N/M		(1,253)		273		N/M
Other	5,747		3,285		74.9 %		9,212		5,990		53.8 %
Total noninterest income	49,786		42,987		15.8 %		91,079		83,309		9.3 %
Noninterest expenses
Salaries and employee benefits	64,992		60,784		6.9 %		128,939		122,037		5.7 %
Net occupancy	5,359		5,535		(3.2) %		11,105		11,239		(1.2) %
Furniture and equipment	3,201		3,371		(5.0) %		6,768		7,340		(7.8) %
Data processing	8,334		7,864		6.0 %		16,598		15,151		9.6 %
Marketing	2,323		2,035		14.2 %		4,023		3,396		18.5 %
Communication	670		746		(10.2) %		1,336		1,584		(15.7) %
Professional services	2,214		2,029		9.1 %		4,373		3,479		25.7 %
State intangible tax	1,090		1,201		(9.2) %		2,221		2,403		(7.6) %
FDIC assessments	1,677		1,362		23.1 %		3,136		2,711		15.7 %
Intangible amortization	2,915		2,480		17.5 %		5,829		4,959		17.5 %
Leasing business expense	4,687		0		100.0 %		8,556		0		100.0 %
Other	5,765		12,236		(52.9) %		13,148		17,850		(26.3) %
Total noninterest expenses	103,227		99,643		3.6 %		206,032		192,149		7.2 %
Income before income taxes	64,540		61,609		4.8 %		115,189		119,313		(3.5) %
Income tax expense	13,020		10,721		21.4 %		22,368		21,110		6.0 %
Net income	$       51,520		$       50,888		1.2 %		$       92,821		$       98,203		(5.5) %
ADDITIONAL DATA
Net earnings per share - basic	$          0.55		$          0.53				$          0.99		$          1.02
Net earnings per share - diluted	$          0.55		$          0.52				$          0.98		$          1.01
Dividends declared per share	$          0.23		$          0.23				$          0.46		$          0.46
Return on average assets	1.28 %		1.26 %				1.16 %		1.23 %
Return on average shareholders' equity	9.84 %		9.02 %				8.66 %		8.73 %
Interest income	$     126,143		$     121,914		3.5 %		$     239,973		$     244,523		(1.9) %
Tax equivalent adjustment	1,625		1,619		0.4 %		3,092		3,271		(5.5) %
Interest income - tax equivalent	127,768		123,533		3.4 %		243,065		247,794		(1.9) %
Interest expense	8,948		7,888		13.4 %		16,432		16,621		(1.1) %
Net interest income - tax equivalent	$     118,820		$     115,645		2.7 %		$     226,633		$     231,173		(2.0) %
Net interest margin	3.43 %		3.27 %				3.27 %		3.31 %
Net interest margin (fully tax equivalent) (1)	3.47 %		3.31 %				3.32 %		3.35 %
Full-time equivalent employees	2,096		2,053

(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
		Second		First		Year to		% Change
		Quarter		Quarter		Date		Linked Qtr.
Interest income
Loans and leases, including fees		$   97,091		$   87,182		$ 184,273		11.4 %
Investment securities
Taxable		23,639		22,096		45,735		7.0 %
Tax-exempt		4,916		4,431		9,347		10.9 %
Total investment securities interest		28,555		26,527		55,082		7.6 %
Other earning assets		497		121		618		310.7 %
Total interest income		126,143		113,830		239,973		10.8 %
Interest expense
Deposits		2,963		2,623		5,586		13.0 %
Short-term borrowings		1,373		317		1,690		333.1 %
Long-term borrowings		4,612		4,544		9,156		1.5 %
Total interest expense		8,948		7,484		16,432		19.6 %
Net interest income		117,195		106,346		223,541		10.2 %
Provision for credit losses-loans and leases		(4,267)		(5,589)		(9,856)		(23.7) %
Provision for credit losses-unfunded commitments		3,481		(226)		3,255		N/M
Net interest income after provision for credit losses		117,981		112,161		230,142		5.2 %
Noninterest income
Service charges on deposit accounts		7,648		7,729		15,377		(1.0) %
Trust and wealth management fees		6,311		6,060		12,371		4.1 %
Bankcard income		3,823		3,337		7,160		14.6 %
Client derivative fees		1,353		799		2,152		69.3 %
Foreign exchange income		13,470		10,151		23,621		32.7 %
Leasing business income		7,247		6,076		13,323		19.3 %
Net gains from sales of loans		5,241		3,872		9,113		35.4 %
Net gain (loss) on sale of investment securities		0		3		3		(100.0) %
Net  gain (loss) on equity  securities		(1,054)		(199)		(1,253)		429.6 %
Other		5,747		3,465		9,212		65.9 %
Total noninterest income		49,786		41,293		91,079		20.6 %
Noninterest expenses
Salaries and employee benefits		64,992		63,947		128,939		1.6 %
Net occupancy		5,359		5,746		11,105		(6.7) %
Furniture and equipment		3,201		3,567		6,768		(10.3) %
Data processing		8,334		8,264		16,598		0.8 %
Marketing		2,323		1,700		4,023		36.6 %
Communication		670		666		1,336		0.6 %
Professional services		2,214		2,159		4,373		2.5 %
State intangible tax		1,090		1,131		2,221		(3.6) %
FDIC assessments		1,677		1,459		3,136		14.9 %
Intangible amortization		2,915		2,914		5,829		0.0 %
Leasing business expense		4,687		3,869		8,556		21.1 %
Other		5,765		7,383		13,148		(21.9) %
Total noninterest expenses		103,227		102,805		206,032		0.4 %
Income before income taxes		64,540		50,649		115,189		27.4 %
Income tax expense		13,020		9,348		22,368		39.3 %
Net income		$   51,520		$   41,301		$   92,821		24.7 %
ADDITIONAL DATA
Net earnings per share - basic		$      0.55		$      0.44		$      0.99
Net earnings per share - diluted		$      0.55		$      0.44		$      0.98
Dividends declared per share		$      0.23		$      0.23		$      0.46
Return on average assets		1.28 %		1.03 %		1.16 %
Return on average shareholders' equity		9.84 %		7.53 %		8.66 %
Interest income		$ 126,143		$ 113,830		$ 239,973		10.8 %
Tax equivalent adjustment		1,625		1,467		3,092		10.8 %
Interest income - tax equivalent		127,768		115,297		243,065		10.8 %
Interest expense		8,948		7,484		16,432		19.6 %
Net interest income - tax equivalent		$ 118,820		$ 107,813		$ 226,633		10.2 %
Net interest margin		3.43 %		3.12 %		3.27 %
Net interest margin (fully tax equivalent) (1)		3.47 %		3.17 %		3.32 %
Full-time equivalent employees		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)
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		% Change		% Change
	2022		2022		2021		2021		2021		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$      302,549		$      230,428		$      220,031		$      209,748		$      206,918		31.3 %		46.2 %
Interest-bearing deposits with other banks	184,974		227,147		214,811		29,799		38,610		(18.6) %		379.1 %
Investment securities available-for-sale	3,843,580		3,957,882		4,207,846		4,114,094		3,955,839		(2.9) %		(2.8) %
Investment securities held-to-maturity	88,057		92,597		98,420		103,886		112,456		(4.9) %		(21.7) %
Other investments	132,151		114,563		102,971		97,831		129,432		15.4 %		2.1 %
Loans held for sale	22,044		12,670		29,482		33,835		31,546		74.0 %		(30.1) %
Loans and leases
Commercial and industrial	2,927,175		2,800,209		2,720,028		2,602,848		2,701,203		4.5 %		8.4 %
Lease financing	146,639		125,867		109,624		67,855		68,229		16.5 %		114.9 %
Construction real estate	449,734		479,744		455,894		477,004		630,329		(6.3) %		(28.7) %
Commercial real estate	4,007,037		4,031,484		4,226,614		4,438,374		4,332,561		(0.6) %		(7.5) %
Residential real estate	965,387		913,838		896,069		922,492		932,112		5.6 %		3.6 %
Home equity	725,700		707,973		708,399		709,050		711,756		2.5 %		2.0 %
Installment	146,680		132,197		119,454		96,077		89,143		11.0 %		64.5 %
Credit card	52,065		50,305		52,217		47,231		46,177		3.5 %		12.8 %
Total loans	9,420,417		9,241,617		9,288,299		9,360,931		9,511,510		1.9 %		(1.0) %
Less:
Allowance for credit losses	(117,885)		(124,130)		(131,992)		(148,903)		(159,590)		(5.0) %		(26.1) %
Net loans	9,302,532		9,117,487		9,156,307		9,212,028		9,351,920		2.0 %		(0.5) %
Premises and equipment	191,099		190,975		193,040		192,580		192,238		0.1 %		(0.6) %
Operating leases	82,659		61,927		60,811		0		0		33.5 %		100.0 %
Goodwill	999,959		999,959		1,000,749		937,771		937,771		0.0 %		6.6 %
Other intangibles	82,889		85,891		88,898		56,811		59,391		(3.5) %		39.6 %
Accrued interest and other assets	1,011,221		917,624		955,775		968,210		1,021,798		10.2 %		(1.0) %
Total Assets	$  16,243,714		$ 16,009,150		$  16,329,141		$ 15,956,593		$  16,037,919		1.5 %		1.3 %
LIABILITIES
Deposits
Interest-bearing demand	$   3,096,365		$   3,246,646		$   3,198,745		$   2,916,860		$   2,963,151		(4.6) %		4.5 %
Savings	4,029,717		4,188,867		4,157,374		4,223,905		4,093,229		(3.8) %		(1.6) %
Time	1,026,918		1,121,966		1,330,263		1,517,419		1,548,109		(8.5) %		(33.7) %
Total interest-bearing deposits	8,153,000		8,557,479		8,686,382		8,658,184		8,604,489		(4.7) %		(5.2) %
Noninterest-bearing	4,124,111		4,261,429		4,185,572		4,019,197		3,901,691		(3.2) %		5.7 %
Total deposits	12,277,111		12,818,908		12,871,954		12,677,381		12,506,180		(4.2) %		(1.8) %
Federal funds purchased and securities sold
under agreements to repurchase	0		0		51,203		81,850		255,791		0.0 %		(100.0) %
FHLB short-term borrowings	896,000		185,000		225,000		107,000		217,000		384.3 %		312.9 %
Other	0		0		20,000		0		0		0.0 %		0.0 %
Total short-term borrowings	896,000		185,000		296,203		188,850		472,791		384.3 %		89.5 %
Long-term debt	358,578		379,840		409,832		313,230		313,039		(5.6) %		14.5 %
Total borrowed funds	1,254,578		564,840		706,035		502,080		785,830		122.1 %		59.7 %
Accrued interest and other liabilities	643,355		487,957		492,210		540,962		476,402		31.8 %		35.0 %
Total Liabilities	14,175,044		13,871,705		14,070,199		13,720,423		13,768,412		2.2 %		3.0 %
SHAREHOLDERS' EQUITY
Common stock	1,637,237		1,634,903		1,640,358		1,637,065		1,635,470		0.1 %		0.1 %
Retained earnings	887,006		857,178		837,473		812,082		773,857		3.5 %		14.6 %
Accumulated other comprehensive income (loss)	(243,328)		(142,477)		(433)		14,230		30,735		70.8 %		N/M
Treasury stock, at cost	(212,245)		(212,159)		(218,456)		(227,207)		(170,555)		0.0 %		24.4 %
Total Shareholders' Equity	2,068,670		2,137,445		2,258,942		2,236,170		2,269,507		(3.2) %		(8.8) %
Total Liabilities and Shareholders' Equity	$  16,243,714		$ 16,009,150		$  16,329,141		$ 15,956,593		$  16,037,919		1.5 %		1.3 %

 

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages										Year-to-Date Averages
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		June 30,
	2022		2022		2021		2021		2021		2022		2021
ASSETS
Cash and due from banks	$      305,803		$      248,517		$      253,091		$      245,212		$      237,964		$       277,318		$       235,135
Interest-bearing deposits with other banks	236,797		234,687		166,904		32,400		45,593		235,748		46,249
Investment securities	4,118,287		4,308,059		4,343,513		4,189,253		4,130,207		4,212,649		3,957,559
Loans held for sale	15,446		15,589		24,491		28,365		28,348		15,517		29,015
Loans and leases
Commercial and industrial	2,884,373		2,736,613		2,552,686		2,634,306		2,953,185		2,810,901		2,991,239
Lease financing	134,334		115,703		67,537		67,159		66,124		125,070		68,304
Construction real estate	460,609		474,278		460,588		567,091		630,351		467,406		638,955
Commercial real estate	4,025,493		4,139,072		4,391,328		4,413,003		4,372,679		4,081,969		4,356,106
Residential real estate	936,165		903,567		917,399		937,969		940,600		919,956		960,548
Home equity	716,219		703,714		709,954		710,794		707,409		710,001		716,720
Installment	140,145		125,579		106,188		93,937		84,768		132,902		83,082
Credit card	55,036		52,659		53,056		50,126		48,501		53,854		47,610
Total loans	9,352,374		9,251,185		9,258,736		9,474,385		9,803,617		9,302,059		9,862,564
Less:
Allowance for credit losses	(123,950)		(129,601)		(144,756)		(157,727)		(169,979)		(126,760)		(173,899)
Net loans	9,228,424		9,121,584		9,113,980		9,316,658		9,633,638		9,175,299		9,688,665
Premises and equipment	191,895		192,832		192,941		193,775		200,558		192,361		203,576
Operating leases	73,862		61,297		659		0		0		67,614		0
Goodwill	999,958		1,000,238		938,453		937,771		937,771		1,000,097		937,771
Other intangibles	84,577		87,602		56,120		58,314		60,929		86,081		62,222
Accrued interest and other assets	930,929		914,514		946,265		994,060		940,461		922,767		969,347
Total Assets	$  16,185,978		$ 16,184,919		$  16,036,417		$  15,995,808		$  16,215,469		$  16,185,451		$  16,129,539
LIABILITIES
Deposits
Interest-bearing demand	$    3,180,846		$   3,246,919		$    3,069,416		$   2,960,388		$    2,973,930		$   3,213,700		$    2,961,376
Savings	4,076,380		4,145,615		4,195,504		4,150,610		4,096,077		4,110,806		3,956,471
Time	1,055,650		1,231,266		1,428,872		1,574,951		1,637,546		1,142,973		1,702,326
Total interest-bearing deposits	8,312,876		8,623,800		8,693,792		8,685,949		8,707,553		8,467,479		8,620,173
Noninterest-bearing	4,224,842		4,160,175		4,191,457		3,981,404		4,003,626		4,192,687		3,922,288
Total deposits	12,537,718		12,783,975		12,885,249		12,667,353		12,711,179		12,660,166		12,542,461
Federal funds purchased and securities sold
under agreements to repurchase	24,229		45,358		79,382		186,401		194,478		34,735		189,508
FHLB short-term borrowings	586,846		257,800		2,445		63,463		40,846		423,232		53,961
Other	0		12,889		654		0		0		6,409		0
Total short-term borrowings	611,075		316,047		82,481		249,864		235,324		464,376		243,469
Long-term debt	359,168		385,240		314,262		313,100		513,790		372,132		573,898
Total borrowed funds	970,243		701,287		396,743		562,964		749,114		836,508		817,367
Accrued interest and other liabilities	578,347		474,162		512,605		504,198		491,489		526,542		501,518
Total Liabilities	14,086,308		13,959,424		13,794,597		13,734,515		13,951,782		14,023,216		13,861,346
SHAREHOLDERS' EQUITY
Common stock	1,635,990		1,638,321		1,637,828		1,635,833		1,633,950		1,637,149		1,635,409
Retained earnings	866,910		841,652		822,500		783,760		754,456		854,351		740,481
Accumulated other comprehensive loss	(190,949)		(38,448)		8,542		36,917		25,832		(115,120)		33,997
Treasury stock, at cost	(212,281)		(216,030)		(227,050)		(195,217)		(150,551)		(214,145)		(141,694)
Total Shareholders' Equity	2,099,670		2,225,495		2,241,820		2,261,293		2,263,687		2,162,235		2,268,193
Total Liabilities and Shareholders' Equity	$  16,185,978		$ 16,184,919		$  16,036,417		$  15,995,808		$  16,215,469		$  16,185,451		$  16,129,539

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages																		Year-to-Date Averages
		June 30, 2022						March 31, 2022						June 30, 2021						June 30, 2022				June 30, 2021
		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities		$      4,118,287		$       28,555		2.78 %		$  4,308,059		$      26,527		2.50 %		$  4,130,207		$      24,395		2.37 %		$  4,212,649		2.64 %		$  3,957,559		2.45 %
Interest-bearing deposits with other banks		236,797		497		0.84 %		234,687		121		0.21 %		45,593		25		0.22 %		235,748		0.53 %		46,249		0.23 %
Gross loans (1)		9,367,820		97,091		4.16 %		9,266,774		87,182		3.82 %		9,831,965		97,494		3.98 %		9,317,576		3.99 %		9,891,579		4.00 %
Total earning assets		13,722,904		126,143		3.69 %		13,809,520		113,830		3.34 %		14,007,765		121,914		3.49 %		13,765,973		3.52 %		13,895,387		3.55 %
Nonearning assets
Allowance for credit losses		(123,950)						(129,601)						(169,979)						(126,760)				(173,899)
Cash and due from banks		305,803						248,517						237,964						277,318				235,135
Accrued interest and other assets		2,281,221						2,256,483						2,139,719						2,268,920				2,172,916
Total assets		$    16,185,978						$ 16,184,919						$ 16,215,469						$ 16,185,451				$ 16,129,539
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$      3,180,846		$           842		0.11 %		$  3,246,919		$           492		0.06 %		$  2,973,930		$           489		0.07 %		$  3,213,700		0.08 %		$  2,961,376		0.07 %
Savings		4,076,380		1,003		0.10 %		4,145,615		850		0.08 %		4,096,077		1,106		0.11 %		4,110,806		0.09 %		3,956,471		0.12 %
Time		1,055,650		1,118		0.42 %		1,231,266		1,281		0.42 %		1,637,546		2,098		0.51 %		1,142,973		0.42 %		1,702,326		0.56 %
Total interest-bearing deposits		8,312,876		2,963		0.14 %		8,623,800		2,623		0.12 %		8,707,553		3,693		0.17 %		8,467,479		0.13 %		8,620,173		0.19 %
Borrowed funds
Short-term borrowings		611,075		1,373		0.90 %		316,047		317		0.41 %		235,324		53		0.09 %		464,376		0.73 %		243,469		0.10 %
Long-term debt		359,168		4,612		5.15 %		385,240		4,544		4.78 %		513,790		4,142		3.23 %		372,132		4.96 %		573,898		2.98 %
Total borrowed funds		970,243		5,985		2.47 %		701,287		4,861		2.81 %		749,114		4,195		2.25 %		836,508		2.61 %		817,367		2.12 %
Total interest-bearing liabilities		9,283,119		8,948		0.39 %		9,325,087		7,484		0.33 %		9,456,667		7,888		0.33 %		9,303,987		0.36 %		9,437,540		0.36 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		4,224,842						4,160,175						4,003,626						4,192,687				3,922,288
Other liabilities		578,347						474,162						491,489						526,542				501,518
Shareholders' equity		2,099,670						2,225,495						2,263,687						2,162,235				2,268,193
Total liabilities & shareholders' equity		$    16,185,978						$ 16,184,919						$ 16,215,469						$ 16,185,451				$ 16,129,539
Net interest income		$         117,195						$      106,346						$      114,026						$      223,541				$      227,902
Net interest spread						3.30 %						3.01 %						3.16 %				3.16 %				3.19 %
Net interest margin						3.43 %						3.12 %						3.27 %				3.27 %				3.31 %
Tax equivalent adjustment						0.04 %						0.05 %						0.04 %				0.05 %				0.04 %
Net interest margin (fully tax equivalent)						3.47 %						3.17 %						3.31 %				3.32 %				3.35 %
(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		$     3,016		$       (988)		$     2,028		$     4,243		$         (83)		$      4,160		$     3,702		$     3,335		$      7,037
Interest-bearing deposits with other banks		366		10		376		71		401		472		68		497		565
Gross loans (2)		7,806		2,103		9,909		4,408		(4,811)		(403)		(800)		(11,352)		(12,152)
Total earning assets		11,188		1,125		12,313		8,722		(4,493)		4,229		2,970		(7,520)		(4,550)
Interest-bearing liabilities
Total interest-bearing deposits		$        417		$         (77)		$        340		$       (589)		$       (141)		$       (730)		$    (2,339)		$       (101)		$     (2,440)
Borrowed funds
Short-term borrowings		385		671		1,056		476		844		1,320		766		804		1,570
Long-term debt		348		(280)		68		2,455		(1,985)		470		5,645		(4,964)		681
Total borrowed funds		733		391		1,124		2,931		(1,141)		1,790		6,411		(4,160)		2,251
Total interest-bearing liabilities		1,150		314		1,464		2,342		(1,282)		1,060		4,072		(4,261)		(189)
Net interest income (1)		$    10,038		$        811		$    10,849		$     6,380		$    (3,211)		$      3,169		$    (1,102)		$    (3,259)		$     (4,361)

(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)
											Six months ended
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		June 30,		June 30,
	2022		2022		2021		2021		2021		2022		2021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$  124,130		$  131,992		$  148,903		$  159,590		$  169,923		$  131,992		$  175,679
Purchase accounting  ACL for PCD	0		0		17		0		0		0		0
Provision for credit losses	(4,267)		(5,589)		(9,525)		(8,193)		(4,756)		(9,856)		(1,306)
Gross charge-offs
Commercial and industrial	773		2,845		1,364		2,617		3,729		3,618		11,639
Lease financing	8		131		0		0		0		139		0
Construction real estate	0		0		1,496		0		0		0		2
Commercial real estate	3,419		0		9,150		1,030		2,041		3,419		3,291
Residential real estate	4		22		6		74		46		26		47
Home equity	22		21		22		200		240		43		851
Installment	361		177		184		37		77		538		113
Credit card	212		246		149		230		179		458		401
Total gross charge-offs	4,799		3,442		12,371		4,188		6,312		8,241		16,344
Recoveries
Commercial and industrial	177		379		201		869		205		556		542
Lease financing	3		33		0		0		0		36		0
Construction real estate	0		0		0		0		3		0		3
Commercial real estate	2,194		222		4,292		223		75		2,416		270
Residential real estate	34		90		74		56		54		124		98
Home equity	360		265		303		426		317		625		494
Installment	47		21		27		53		37		68		71
Credit card	6		159		71		67		44		165		83
Total recoveries	2,821		1,169		4,968		1,694		735		3,990		1,561
Total net charge-offs	1,978		2,273		7,403		2,494		5,577		4,251		14,783
Ending allowance for credit losses	$  117,885		$  124,130		$  131,992		$  148,903		$  159,590		$  117,885		$  159,590
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.08 %		0.37 %		0.18 %		0.26 %		0.48 %		0.22 %		0.75 %
Lease financing	0.01 %		0.34 %		0.00 %		0.00 %		0.00 %		0.17 %		0.00 %
Construction real estate	0.00 %		0.00 %		1.29 %		0.00 %		0.00 %		0.00 %		0.00 %
Commercial real estate	0.12 %		(0.02) %		0.44 %		0.07 %		0.18 %		0.05 %		0.14 %
Residential real estate	(0.01) %		(0.03) %		(0.03) %		0.01 %		0.00 %		(0.02) %		(0.01) %
Home equity	(0.19) %		(0.14) %		(0.16) %		(0.13) %		(0.04) %		(0.17) %		0.10 %
Installment	0.90 %		0.50 %		0.59 %		(0.07) %		0.19 %		0.71 %		0.10 %
Credit card	1.50 %		0.67 %		0.58 %		1.29 %		1.12 %		1.10 %		1.35 %
Total net charge-offs	0.08 %		0.10 %		0.32 %		0.10 %		0.23 %		0.09 %		0.30 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$    11,675		$    14,390		$    17,362		$    15,160		$    27,426		$ 11,675		$ 27,426
Lease financing	217		249		203		0		16		217		16
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	14,650		19,843		19,512		38,564		45,957		14,650		45,957
Residential real estate	8,879		7,432		8,305		9,416		9,480		8,879		9,480
Home equity	3,331		3,377		2,922		2,735		3,376		3,331		3,376
Installment	170		163		88		91		115		170		115
Nonaccrual loans	38,922		45,454		48,392		65,966		86,370		38,922		86,370
Accruing troubled debt restructurings (TDRs)	11,225		8,055		11,616		11,448		12,070		11,225		12,070
Total nonperforming loans	50,147		53,509		60,008		77,414		98,440		50,147		98,440
Other real estate owned (OREO)	22		72		98		340		340		22		340
Total nonperforming assets	50,169		53,581		60,106		77,754		98,780		50,169		98,780
Accruing loans past due 90 days or more	142		180		137		104		155		142		155
Total underperforming assets	$    50,311		$    53,761		$    60,243		$    77,858		$    98,935		$ 50,311		$ 98,935
Total classified assets	$  119,769		$  106,839		$  104,815		$  165,462		$  182,516		$  119,769		$  182,516
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	302.87 %		273.09 %		272.76 %		225.73 %		184.77 %		302.87 %		184.77 %
Nonperforming loans	235.08 %		231.98 %		219.96 %		192.35 %		162.12 %		235.08 %		162.12 %
Total ending loans	1.25 %		1.34 %		1.42 %		1.59 %		1.68 %		1.25 %		1.68 %
Nonperforming loans to total loans	0.53 %		0.58 %		0.65 %		0.83 %		1.03 %		0.53 %		1.03 %
Nonaccrual loans to total loans	0.41 %		0.49 %		0.52 %		0.70 %		0.91 %		0.41 %		0.91 %
Nonperforming assets to
Ending loans, plus OREO	0.53 %		0.58 %		0.65 %		0.83 %		1.04 %		0.53 %		1.04 %
Total assets	0.31 %		0.33 %		0.37 %		0.49 %		0.62 %		0.31 %		0.62 %
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.41 %		0.49 %		0.52 %		0.71 %		0.91 %		0.41 %		0.91 %
Total assets	0.24 %		0.28 %		0.30 %		0.42 %		0.54 %		0.24 %		0.54 %
Classified assets to total assets	0.74 %		0.67 %		0.64 %		1.04 %		1.14 %		0.74 %		1.14 %

(1)  Nonaccrual loans include nonaccrual TDRs of $9.5  million,  $16.2  million,  $16.0  million, $20.3 million,  and $21.5  million, as of June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and  June 30, 2021,  respectively.

 

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
											Six months ended,
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		June 30,		June 30,
	2022		2022		2021		2021		2021		2022		2021
PER COMMON SHARE
Market Price
High	$          23.03		$          26.73		$          25.79		$          24.06		$           26.02		$                        26.73		$                         26.40
Low	$          19.09		$          22.92		$          22.89		$          21.48		$           23.35		$                        19.09		$                         17.62
Close	$          19.40		$          23.05		$          24.38		$          23.41		$           23.63		$                        19.40		$                         23.63
Average shares outstanding - basic	93,555,131		93,383,932		92,903,900		94,289,097		96,123,645		93,470,005		96,496,720
Average shares outstanding - diluted	94,449,817		94,263,925		93,761,909		95,143,930		97,009,712		94,357,392		97,366,640
Ending shares outstanding	94,448,792		94,451,496		94,149,240		93,742,797		96,199,509		94,448,792		96,199,509
Total shareholders' equity	$    2,068,670		$     ,137,445		$    2,258,942		$    2,236,170		$    2,269,507		$                  2,068,670		$                  2,269,507
REGULATORY CAPITAL	Preliminary										Preliminary
Common equity tier 1 capital	$    1,307,259		$    1,272,115		$    1,262,789		$    1,316,059		$    1,333,209		$                  1,307,259		$                  1,333,209
Common equity tier 1 capital ratio	10.91 %		10.87 %		10.84 %		11.54 %		11.78 %		10.91 %		11.78 %
Tier 1 capital	$    1,351,287		$    1,316,020		$    1,306,571		$    1,359,297		$    1,376,333		$                  1,351,287		$                  1,376,333
Tier 1 ratio	11.28 %		11.24 %		11.22 %		11.92 %		12.16 %		11.28 %		12.16 %
Total capital	$    1,670,367		$    1,635,003		$    1,642,549		$    1,706,513		$    1,732,930		$                  1,670,367		$                  1,732,930
Total capital ratio	13.94 %		13.97 %		14.10 %		14.97 %		15.31 %		13.94 %		15.31 %
Total capital in excess of minimum requirement	$       412,432		$       406,011		$       419,754		$       509,536		$       544,478		$  412,432		$ 544,478
Total risk-weighted assets	$  11,980,331		$  11,704,681		$  11,645,666		$  11,399,782		$  11,318,590		$  11,980,331		$  11,318,590
Leverage ratio	8.76 %		8.64 %		8.70 %		9.05 %		9.14 %		8.76 %		9.14 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	12.74 %		13.35 %		13.83 %		14.01 %		14.15 %		12.74 %		14.15 %
Ending tangible shareholders' equity to ending tangible assets (1)	6.40 %		6.95 %		7.58 %		8.21 %		8.37 %		6.40 %		8.37 %
Average shareholders' equity to average assets	12.97 %		13.75 %		13.98 %		14.14 %		13.96 %		13.36 %		14.06 %
Average tangible shareholders' equity to average tangible assets (1)	6.62 %		7.44 %		8.20 %		8.35 %		8.23 %		7.03 %		8.30 %
REPURCHASE PROGRAM (2)
Shares repurchased	0		0		0		2,484,295		1,308,945		0		2,149,060
Average share repurchase price	N/A		N/A		N/A		$         23.04		$          25.11		N/A		$                        23.66
Total cost of shares repurchased	N/A		N/A		N/A		$       57,231		$        32,864		N/A		$                      50,846

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

(2) Represents share repurchases as part of publicly announced plans.

N/A = Not applicable

 

 

View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-second-quarter-2022-financial-results-301591313.html

SOURCE First Financial Bancorp.

FAQ

What were the earnings results for First Financial Bancorp (FFBC) in Q2 2022?

First Financial Bancorp reported earnings per diluted share of $0.55 for Q2 2022, an increase from $0.44 in Q1 2022.

How did loan growth perform for First Financial Bancorp (FFBC) in Q2 2022?

In Q2 2022, First Financial Bancorp experienced loan growth of $191.4 million, representing an 8.3% annualized increase.

What is the noninterest income for First Financial Bancorp (FFBC) in the latest quarter?

The noninterest income for Q2 2022 was $49.8 million, which is a 20.6% increase from the linked quarter.

What challenges did First Financial Bancorp (FFBC) face in Q2 2022?

The company faced challenges such as increased noninterest expenses and a forecasted decline in deposit account service charges due to changes in the overdraft program.