First Financial Bancorp Announces Second Quarter 2024 Financial Results and Quarterly Dividend Increase

Rhea-AI Summary

First Financial Bancorp (Nasdaq: FFBC) reported strong Q2 2024 results with earnings per diluted share of $0.64, or $0.65 adjusted. Highlights include:

- Return on average assets of 1.38% (1.40% adjusted)
- Net interest margin of 4.10% on a fully tax-equivalent basis
- Record fee income of $61.5 million
- Loan growth of $316.1 million (11.3% annualized)
- Average deposit growth of $351.1 million (10.6% annualized)
- Net charge-offs decreased to 0.15% of total loans

The Board approved a quarterly dividend increase to $0.24 per share. The company's performance was driven by strong loan and deposit growth, stable net interest margin, and record noninterest income, particularly in foreign exchange, leasing, and wealth management.

Positive

• Earnings per diluted share increased to $0.64 from $0.53 in Q1 2024
• Record fee income of $61.5 million, with significant growth in foreign exchange and leasing business
• Strong loan growth of $316.1 million, representing 11.3% annualized growth
• Average deposit growth of $351.1 million, or 10.6% annualized
• Net charge-offs decreased by 23 basis points from the linked quarter to 0.15% of total loans
• Board approved a quarterly dividend increase to $0.24 per share
• Net interest margin remained stable at 4.10% on a fully tax-equivalent basis
• Efficiency ratio improved to 57.5% (57.0% adjusted)

Negative

• Earnings per diluted share for the first half of 2024 ($1.17) decreased compared to the same period in 2023 ($1.43)
• Noninterest expenses increased by 1.2% from the linked quarter
• Allowance for Credit Losses ratio increased by 7 basis points to 1.36% of total loans
• Some downward credit migration experienced during the period

Insights

Financial Analyst

First Financial Bancorp's Q2 2024 results demonstrate robust performance across key metrics. The earnings per diluted share of $0.64 ($0.65 adjusted) and return on average assets of 1.38% (1.40% adjusted) indicate strong profitability. The net interest margin of 4.10% on a fully tax-equivalent basis is particularly impressive, especially in the current interest rate environment.

The bank's record fee income of $61.5 million is a standout feature, with significant growth in foreign exchange income (60.9% increase) and leasing business income (15.3% increase). This diversification of revenue streams is a positive sign for the bank's resilience and growth potential.

Loan growth of $316.1 million (11.3% annualized) and average deposit growth of $351.1 million (10.6% annualized) indicate strong business momentum. The increase in deposits is particularly noteworthy given the competitive environment for customer funds.

The improvement in asset quality, with net charge-offs declining to 0.15% of total loans, is encouraging. However, the increase in the Allowance for Credit Losses (ACL) to 1.36% of total loans suggests some caution regarding future credit conditions.

The quarterly dividend increase to $0.24 per share reflects management's confidence in the bank's financial position and commitment to shareholder returns. Overall, First Financial Bancorp appears well-positioned for continued growth and profitability in the current banking landscape.

Market Research Analyst

First Financial Bancorp's Q2 2024 results offer several insights into broader market trends. The bank's ability to maintain a stable net interest margin of 4.10% amidst a challenging interest rate environment is noteworthy. This suggests effective balance sheet management and pricing strategies that could be indicative of broader industry resilience.

The record fee income of $61.5 million highlights a growing trend in the banking sector towards diversification of revenue streams. The significant growth in foreign exchange income (60.9% increase) may indicate increased international business activity or currency volatility, which could be relevant for other financial institutions and businesses with global exposure.

The strong loan growth (11.3% annualized) and deposit growth (10.6% annualized) suggest robust economic activity in First Financial's markets. This could be a positive indicator for regional economic health and business confidence.

The moderation in the pace of deposit cost increases (14 basis points in Q2 vs. 22 basis points in Q1) might signal a stabilization in deposit pricing pressures across the banking industry. This trend, if sustained, could support margin stability for banks in the coming quarters.

The increase in the Allowance for Credit Losses, despite improving net charge-offs, suggests ongoing caution about future economic conditions. This conservative approach to credit risk management aligns with broader industry trends and regulatory expectations in the post-pandemic era.

• Earnings per diluted share of $0.64; $0.65 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.38%; 1.40% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 4.10%
• Record fee income of $61.5 million
• Loan growth of $316.1 million; 11.3% on an annualized basis
• Average deposit growth of $351.1 million; 10.6% on an annualized basis
• Net charge-offs 0.15% of total loans; 23 bp decline from linked quarter
• Board of Directors approved quarterly dividend increase to $0.24

CINCINNATI , July 25, 2024 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2024. 

For the three months ended June 30, 2024, the Company reported net income of $60.8 million, or $0.64 per diluted common share.  These results compare to net income of $50.7 million, or $0.53 per diluted common share, for the first quarter of 2024.  For the six months ended June 30, 2024, First Financial had earnings per diluted share of $1.17 compared to $1.43 for the same period in 2023.

Return on average assets for the second quarter of 2024 was 1.38% while return on average tangible common equity was 20.57%⁽¹⁾.  These compare to return on average assets of 1.18% and return on average tangible common equity of 17.35%⁽¹⁾ in the first quarter of 2024.

Second quarter 2024 highlights include:

• Net interest margin of 4.06%, or 4.10% on a fully tax-equivalent basis⁽¹⁾
  • Unchanged from first quarter, exceeding expectations
  • 14 bp increase in earning asset yields driven by 10 bp increase in loan yields and 22 bp increase in yield on the investment securities portfolio
  • Cost of deposits increased 14 bp during second quarter; pace of increase moderated compared to 22 bp increase in first quarter

• Record noninterest income of $61.5 million, or $61.6 million as adjusted⁽¹⁾
  • Foreign exchange income increased $6.4 million, or 60.9% from first quarter
  • Strong leasing business income of $16.8 million; 15.3% increase from first quarter
  • Record wealth management income; 7.4% increase from linked quarter
  • Double digit percentage growth from linked quarter in mortgage banking and bankcard income

• Noninterest expenses of $123.6 million, or $122.5 million as adjusted⁽¹⁾; 1.2% increase from linked quarter
  • Increase driven by variable compensation tied to fee income
  • Second quarter adjustments⁽¹⁾ include $0.4 million of efficiency related costs and $0.8 million of other costs such as acquisition, severance and branch consolidation costs
  • Efficiency ratio of 57.5%; 57.0% as adjusted⁽¹⁾

• Solid loan growth during the quarter
  • Loan balances increased $316.1 million compared to the linked quarter; 11.3% annualized growth
  • Broad-based growth driven by C&I, Agile and Summit

_________________________________________________________________________________________

⁽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.

• Strong average deposit growth during the quarter
  • Average deposits increased $351.1 million, or 10.6% on an annualized basis
  • Second quarter included approximately $100 million of seasonal public fund increases
  • Growth in money market accounts, retail CDs and brokered CDs offset modest declines in noninterest bearing checking and savings balances

• Total Allowance for Credit Losses of $172.6 million; Total quarterly provision expense of $16.4 million
  • Loans and leases - ACL of $156.2 million; ratio to total loans of 1.36% increased 7 bps from first quarter
  • Unfunded Commitments - ACL of $16.4 million
  • Provision expense driven by loan growth and downward credit migration; Classified assets 1.07% of total assets
  • Annualized net charge-offs were 15 bps of total loans; 23 bps decline from linked quarter

• Capital ratios stable and strong 
  • Total capital ratio increased 16 bps to 14.47%
  • Tier 1 common equity increased 11 bps to 11.78%
  • Tangible common equity of 7.23%⁽¹⁾; 9.13%⁽¹⁾ excluding impact from AOCI
  • Tangible book value per share of $12.94⁽¹⁾; 3.5% increase from linked quarter

Additionally, the board of directors approved a quarterly dividend of $0.24 per common share for the next regularly scheduled dividend, payable on September 16, 2024 to shareholders of record as of September 2, 2024.

Archie Brown, President and CEO, commented on the quarter, "We had an outstanding quarter.  Adjusted⁽¹⁾ earnings per share were $0.65 per share, which resulted in an adjusted⁽¹⁾ return on assets of 1.40% and an adjusted⁽¹⁾ return on tangible common equity of 20.88%.  Loan growth was exceptionally strong again this quarter with balances increasing by 11% on an annualized basis, and was a significant driver to the increase to net interest income.  Growth was broad-based and was led by Commercial Banking.  Similarly, average deposits grew approximately 11% for the period, with interest bearing deposits and a seasonal increase in public fund balances driving the increase.  Our 4.10% tax equivalent net interest margin was unchanged from the first quarter and remains at or near the top of our peer group."

Mr. Brown continued, "Total adjusted⁽¹⁾ revenue increased $14.4 million, or 7% compared to the linked quarter.  Additionally, we posted record adjusted⁽¹⁾ noninterest income of $61.6 million.  Growth in fee income was broad-based for the period with foreign exchange revenue growing more than 60% from the linked quarter.  Leasing business income, mortgage banking and bankcard income all increased by double digit percentages and wealth management income posted another record quarter.  Adjusted⁽¹⁾ expenses increased by 1.2% compared to the first quarter.  The increase included a full quarter of Agile expenses, the impact of annual salary adjustments that occurred late in the first quarter and variable compensation tied to our record fee income.  Through our workforce efficiency initiative, we have eliminated 90 full-time positions to date, and this work will continue through the remainder of the year."

Mr. Brown commented on asset quality and the ACL, "I am pleased with the 23 basis point decline in net charge-offs to 15 basis points, which marks the third consecutive quarter that charge-offs have declined.  We did experience some downward credit migration during the period, however this was not concentrated in any particular loan type, and nonperforming loans as a percentage of total assets was relatively flat compared to the prior quarter.  Our ACL increased to 1.36% of total loans, and based on our outlook for loan growth and credit quality, we would expect provision to decline to levels approximating the first quarter in the coming periods."

Mr. Brown concluded, "We are pleased to announce that our Board of Directors approved a $0.01 increase in the common dividend to $0.24.  The 4.3% dividend increase results in a dividend payout ratio within our target range of 35% - 40% of net income and increases our already attractive yield.  I am encouraged with our operating performance through the first half of 2024 and look forward to continued success for the full year."

Full detail of the Company's second quarter 2024 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 26, 2024 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068.  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 (800) 770-2030 (U.S. toll free), (609) 800-9099 (U.S. toll), access code 5048068.  The recording will be available until August 9, 2024.  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, 2023, 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, 2024, the Company had $18.2 billion in assets, $11.5 billion in loans, $13.7 billion in deposits and $2.3 billion in shareholders' equity.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.6 billion in assets under management as of June 30, 2024.  The Company operated 131 full service banking centers as of June 30, 2024, 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,										Six months ended,
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		June 30,
	2024		2024		2023		2023		2023		2024		2023
RESULTS OF OPERATIONS
Net income	$        60,805		$        50,689		$        56,732		$        63,061		$        65,667		$       111,494		$      136,070
Net earnings per share - basic	$            0.64		$            0.54		$            0.60		$            0.67		$            0.70		$            1.18		$            1.45
Net earnings per share - diluted	$            0.64		$            0.53		$            0.60		$            0.66		$            0.69		$            1.17		$            1.43
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	1.38 %		1.18 %		1.31 %		1.48 %		1.55 %		1.28 %		1.62 %
Return on average shareholders' equity	10.72 %		9.00 %		10.50 %		11.62 %		12.32 %		9.86 %		13.00 %
Return on average tangible shareholders' equity (1)	20.57 %		17.35 %		21.36 %		23.60 %		25.27 %		18.97 %		27.08 %
Net interest margin	4.06 %		4.05 %		4.21 %		4.28 %		4.43 %		4.06 %		4.47 %
Net interest margin (fully tax equivalent) (1)(2)	4.10 %		4.10 %		4.26 %		4.33 %		4.48 %		4.10 %		4.51 %
Ending shareholders' equity as a percent of ending assets	12.81 %		12.99 %		12.94 %		12.49 %		12.54 %		12.81 %		12.54 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	7.23 %		7.23 %		7.17 %		6.50 %		6.56 %		7.23 %		6.56 %
Risk-weighted assets (1)	8.95 %		8.80 %		8.81 %		7.88 %		8.03 %		8.95 %		8.03 %
Average shareholders' equity as a percent of average assets	12.87 %		13.09 %		12.52 %		12.70 %		12.60 %		12.98 %		12.45 %
Average tangible shareholders' equity as a percent of average tangible assets (1)	7.15 %		7.25 %		6.57 %		6.69 %		6.57 %		7.20 %		6.39 %
Book value per share	$           24.36		$           23.95		$           23.84		$           22.39		$           22.52		$           24.36		$           22.52
Tangible book value per share (1)	$           12.94		$           12.50		$           12.38		$           10.91		$           11.02		$           12.94		$           11.02
Common equity tier 1 ratio (3)	11.78 %		11.67 %		11.73 %		11.60 %		11.34 %		11.78 %		11.34 %
Tier 1 ratio (3)	12.11 %		12.00 %		12.06 %		11.94 %		11.68 %		12.11 %		11.68 %
Total capital ratio (3)	14.47 %		14.31 %		14.26 %		14.19 %		14.16 %		14.47 %		14.16 %
Leverage ratio (3)	9.73 %		9.75 %		9.70 %		9.59 %		9.33 %		9.73 %		9.33 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$  11,440,930		$  11,066,184		$  10,751,028		$  10,623,734		$  10,513,505		$  11,253,557		$  10,443,791
Investment securities	3,131,541		3,137,665		3,184,408		3,394,237		3,560,453		3,134,603		3,597,678
Interest-bearing deposits with other banks	599,348		553,654		548,153		386,173		329,584		576,501		323,837
Total earning assets	$  15,171,819		$  14,757,503		$  14,483,589		$  14,404,144		$  14,403,542		$  14,964,661		$  14,365,306
Total assets	$  17,728,251		$  17,306,221		$  17,124,955		$  16,951,389		$  16,968,055		$  17,517,236		$  16,955,596
Noninterest-bearing deposits	$    3,144,198		$    3,169,750		$    3,368,024		$    3,493,305		$    3,663,419		$    3,156,974		$    3,808,362
Interest-bearing deposits	10,486,068		10,109,416		9,834,819		9,293,860		9,050,464		10,297,742		8,954,379
Total deposits	$  13,630,266		$  13,279,166		$  13,202,843		$  12,787,165		$  12,713,883		$  13,454,716		$  12,762,741
Borrowings	$    1,171,246		$    1,139,014		$    1,083,954		$    1,403,071		$    1,523,699		$    1,155,130		$    1,479,265
Shareholders' equity	$    2,281,040		$    2,265,562		$    2,144,482		$    2,153,601		$    2,137,765		$    2,273,301		$    2,110,141
CREDIT QUALITY RATIOS
Allowance to ending loans	1.36 %		1.29 %		1.29 %		1.36 %		1.41 %		1.36 %		1.41 %
Allowance to nonaccrual loans	249.21 %		243.55 %		215.10 %		193.75 %		276.70 %		249.21 %		276.70 %
Nonaccrual loans to total loans	0.54 %		0.53 %		0.60 %		0.70 %		0.51 %		0.54 %		0.51 %
Nonperforming assets to ending loans, plus OREO	0.54 %		0.53 %		0.60 %		0.71 %		0.51 %		0.54 %		0.51 %
Nonperforming assets to total assets	0.35 %		0.34 %		0.38 %		0.44 %		0.32 %		0.35 %		0.32 %
Classified assets to total assets	1.07 %		0.92 %		0.80 %		0.82 %		0.81 %		1.07 %		0.81 %
Net charge-offs to average loans (annualized)	0.15 %		0.38 %		0.46 %		0.61 %		0.22 %		0.27 %		0.11 %

(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, 2024 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,
	2024		2023		% Change		2024		2023		% Change
Interest income
Loans and leases, including fees	$     211,760		$     184,387		14.8 %		$     413,600		$     354,093		16.8 %
Investment securities
Taxable	30,295		32,062		(5.5) %		58,591		63,929		(8.3) %
Tax-exempt	2,704		3,513		(23.0) %		5,796		6,977		(16.9) %
Total investment securities interest	32,999		35,575		(7.2) %		64,387		70,906		(9.2) %
Other earning assets	7,960		3,933		102.4 %		15,418		7,477		106.2 %
Total interest income	252,719		223,895		12.9 %		493,405		432,476		14.1 %
Interest expense
Deposits	83,022		44,292		87.4 %		159,097		75,748		110.0 %
Short-term borrowings	11,395		15,536		(26.7) %		22,338		28,486		(21.6) %
Long-term borrowings	4,991		4,835		3.2 %		9,919		9,692		2.3 %
Total interest expense	99,408		64,663		53.7 %		191,354		113,926		68.0 %
Net interest income	153,311		159,232		(3.7) %		302,051		318,550		(5.2) %
Provision for credit losses-loans and leases	16,157		12,719		27.0 %		29,576		21,363		38.4 %
Provision for credit losses-unfunded commitments	286		(1,994)		(114.3) %		(1,973)		(159)		1,140.9 %
Net interest income after provision for credit losses	136,868		148,507		(7.8) %		274,448		297,346		(7.7) %
Noninterest income
Service charges on deposit accounts	7,188		6,972		3.1 %		14,100		13,486		4.6 %
Wealth management fees	7,172		6,713		6.8 %		13,848		13,047		6.1 %
Bankcard income	3,900		3,692		5.6 %		7,042		7,284		(3.3) %
Client derivative fees	763		1,827		(58.2) %		2,013		2,832		(28.9) %
Foreign exchange income	16,787		15,039		11.6 %		27,222		31,937		(14.8) %
Leasing business income	16,828		10,265		63.9 %		31,417		23,929		31.3 %
Net gains from sales of loans	4,479		3,839		16.7 %		8,263		6,174		33.8 %
Net gain (loss) on sale of investment securities	0		(384)		(100.0) %		(5,277)		(403)		1,209.4 %
Net gain (loss) on equity  securities	(64)		(82)		(22.0) %		26		58		(55.2) %
Other	4,448		5,377		(17.3) %		9,359		10,457		(10.5) %
Total noninterest income	61,501		53,258		15.5 %		108,013		108,801		(0.7) %
Noninterest expenses
Salaries and employee benefits	75,225		74,199		1.4 %		149,262		146,453		1.9 %
Net occupancy	5,793		5,606		3.3 %		11,716		11,291		3.8 %
Furniture and equipment	3,646		3,362		8.4 %		7,334		6,679		9.8 %
Data processing	8,877		9,871		(10.1) %		17,182		18,891		(9.0) %
Marketing	2,605		2,802		(7.0) %		4,567		4,962		(8.0) %
Communication	816		644		26.7 %		1,611		1,278		26.1 %
Professional services	2,885		2,308		25.0 %		5,153		4,254		21.1 %
State intangible tax	875		964		(9.2) %		1,752		1,949		(10.1) %
FDIC assessments	2,657		2,806		(5.3) %		5,437		5,632		(3.5) %
Intangible amortization	2,396		2,601		(7.9) %		4,697		5,201		(9.7) %
Leasing business expense	10,128		6,730		50.5 %		19,882		14,668		35.5 %
Other	7,671		8,722		(12.0) %		17,336		16,050		8.0 %
Total noninterest expenses	123,574		120,615		2.5 %		245,929		237,308		3.6 %
Income before income taxes	74,795		81,150		(7.8) %		136,532		168,839		(19.1) %
Income tax expense (benefit)	13,990		15,483		(9.6) %		25,038		32,769		(23.6) %
Net income	$       60,805		$       65,667		(7.4) %		$     111,494		$     136,070		(18.1) %
ADDITIONAL DATA
Net earnings per share - basic	$          0.64		$          0.70				$          1.18		$          1.45
Net earnings per share - diluted	$          0.64		$          0.69				$          1.17		$          1.43
Dividends declared per share	$          0.23		$          0.23				$          0.46		$          0.46
Return on average assets	1.38 %		1.55 %				1.28 %		1.62 %
Return on average shareholders' equity	10.72 %		12.32 %				9.86 %		13.00 %
Interest income	$     252,719		$     223,895		12.9 %		$     493,405		$     432,476		14.1 %
Tax equivalent adjustment	1,418		1,601		(11.4) %		2,953		3,025		(2.4) %
Interest income - tax equivalent	254,137		225,496		12.7 %		496,358		435,501		14.0 %
Interest expense	99,408		64,663		53.7 %		191,354		113,926		68.0 %
Net interest income - tax equivalent	$     154,729		$     160,833		(3.8) %		$     305,004		$     321,575		(5.2) %
Net interest margin	4.06 %		4.43 %				4.06 %		4.47 %
Net interest margin (fully tax equivalent) (1)	4.10 %		4.48 %				4.10 %		4.51 %
Full-time equivalent employees	2,144		2,193

(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)
	2024
	Second		First		Year to		% Change
	Quarter		Quarter		Date		Linked Qtr.
Interest income
Loans and leases, including fees	$ 211,760		$ 201,840		$ 413,600		4.9 %
Investment securities
Taxable	30,295		28,296		58,591		7.1 %
Tax-exempt	2,704		3,092		5,796		(12.5) %
Total investment securities interest	32,999		31,388		64,387		5.1 %
Other earning assets	7,960		7,458		15,418		6.7 %
Total interest income	252,719		240,686		493,405		5.0 %
Interest expense
Deposits	83,022		76,075		159,097		9.1 %
Short-term borrowings	11,395		10,943		22,338		4.1 %
Long-term borrowings	4,991		4,928		9,919		1.3 %
Total interest expense	99,408		91,946		191,354		8.1 %
Net interest income	153,311		148,740		302,051		3.1 %
Provision for credit losses-loans and leases	16,157		13,419		29,576		20.4 %
Provision for credit losses-unfunded commitments	286		(2,259)		(1,973)		(112.7) %
Net interest income after provision for credit losses	136,868		137,580		274,448		(0.5) %
Noninterest income
Service charges on deposit accounts	7,188		6,912		14,100		4.0 %
Wealth management fees	7,172		6,676		13,848		7.4 %
Bankcard income	3,900		3,142		7,042		24.1 %
Client derivative fees	763		1,250		2,013		(39.0) %
Foreign exchange income	16,787		10,435		27,222		60.9 %
Leasing business income	16,828		14,589		31,417		15.3 %
Net gains from sales of loans	4,479		3,784		8,263		18.4 %
Net gain (loss) on sale of investment securities	0		(5,277)		(5,277)		(100.0) %
Net gain (loss) on equity securities	(64)		90		26		171.1 %
Other	4,448		4,911		9,359		(9.4) %
Total noninterest income	61,501		46,512		108,013		32.2 %
Noninterest expenses
Salaries and employee benefits	75,225		74,037		149,262		1.6 %
Net occupancy	5,793		5,923		11,716		(2.2) %
Furniture and equipment	3,646		3,688		7,334		(1.1) %
Data processing	8,877		8,305		17,182		6.9 %
Marketing	2,605		1,962		4,567		32.8 %
Communication	816		795		1,611		2.6 %
Professional services	2,885		2,268		5,153		27.2 %
State intangible tax	875		877		1,752		(0.2) %
FDIC assessments	2,657		2,780		5,437		(4.4) %
Intangible amortization	2,396		2,301		4,697		4.1 %
Leasing business expense	10,128		9,754		19,882		3.8 %
Other	7,671		9,665		17,336		(20.6) %
Total noninterest expenses	123,574		122,355		245,929		1.0 %
Income before income taxes	74,795		61,737		136,532		21.2 %
Income tax expense (benefit)	13,990		11,048		25,038		26.6 %
Net income	$   60,805		$   50,689		$ 111,494		20.0 %
ADDITIONAL DATA
Net earnings per share - basic	$      0.64		$      0.54		$      1.18
Net earnings per share - diluted	$      0.64		$      0.53		$      1.17
Dividends declared per share	$      0.23		$      0.23		$      0.46
Return on average assets	1.38 %		1.18 %		1.28 %
Return on average shareholders' equity	10.72 %		9.00 %		9.86 %
Interest income	$ 252,719		$ 240,686		$ 493,405		5.0 %
Tax equivalent adjustment	1,418		1,535		2,953		(7.6) %
Interest income - tax equivalent	254,137		242,221		496,358		4.9 %
Interest expense	99,408		91,946		191,354		8.1 %
Net interest income - tax equivalent	$ 154,729		$ 150,275		$ 305,004		3.0 %
Net interest margin	4.06 %		4.05 %		4.06 %
Net interest margin (fully tax equivalent) (1)	4.10 %		4.10 %		4.10 %
Full-time equivalent employees	2,144		2,116

(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)
	2023
	Fourth		Third		Second		First		Full
	Quarter		Quarter		Quarter		Quarter		Year
Interest income
Loans and leases, including fees	$ 197,416		$  192,261		$  184,387		$  169,706		$  743,770
Investment securities
Taxable	30,294		31,297		32,062		31,867		125,520
Tax-exempt	3,402		3,522		3,513		3,464		13,901
Total investment securities interest	33,696		34,819		35,575		35,331		139,421
Other earning assets	7,325		5,011		3,933		3,544		19,813
Total interest income	238,437		232,091		223,895		208,581		903,004
Interest expense
Deposits	69,193		57,069		44,292		31,456		202,010
Short-term borrowings	10,277		14,615		15,536		12,950		53,378
Long-term borrowings	5,202		4,952		4,835		4,857		19,846
Total interest expense	84,672		76,636		64,663		49,263		275,234
Net interest income	153,765		155,455		159,232		159,318		627,770
Provision for credit losses-loans and leases	8,804		12,907		12,719		8,644		43,074
Provision for credit losses-unfunded commitments	1,426		(1,234)		(1,994)		1,835		33
Net interest income after provision for credit losses	143,535		143,782		148,507		148,839		584,663
Noninterest income
Service charges on deposit accounts	6,846		6,957		6,972		6,514		27,289
Wealth management fees	6,091		6,943		6,713		6,334		26,081
Bankcard income	3,349		3,406		3,692		3,592		14,039
Client derivative fees	711		1,612		1,827		1,005		5,155
Foreign exchange income	8,730		13,384		15,039		16,898		54,051
Leasing business income	12,856		14,537		10,265		13,664		51,322
Net gains from sales of loans	2,957		4,086		3,839		2,335		13,217
Net gain (loss) on sale of investment securities	(851)		(4)		(384)		(19)		(1,258)
Net  gain (loss) on equity securities	202		(54)		(82)		140		206
Other	6,102		5,761		5,377		5,080		22,320
Total noninterest income	46,993		56,628		53,258		55,543		212,422
Noninterest expenses
Salaries and employee benefits	70,637		75,641		74,199		72,254		292,731
Net occupancy	5,890		5,809		5,606		5,685		22,990
Furniture and equipment	3,523		3,341		3,362		3,317		13,543
Data processing	8,488		8,473		9,871		9,020		35,852
Marketing	2,087		2,598		2,802		2,160		9,647
Communication	707		744		644		634		2,729
Professional services	3,148		2,524		2,308		1,946		9,926
State intangible tax	984		981		964		985		3,914
FDIC assessments	3,651		2,665		2,806		2,826		11,948
Intangible amortization	2,601		2,600		2,601		2,600		10,402
Leasing business expense	8,955		8,877		6,730		7,938		32,500
Other	8,466		7,791		8,722		7,328		32,307
Total noninterest expenses	119,137		122,044		120,615		116,693		478,489
Income before income taxes	71,391		78,366		81,150		87,689		318,596
Income tax expense (benefit)	14,659		15,305		15,483		17,286		62,733
Net income	$   56,732		$   63,061		$   65,667		$   70,403		$  255,863
ADDITIONAL DATA
Net earnings per share - basic	$      0.60		$      0.67		$      0.70		$      0.75		$       2.72
Net earnings per share - diluted	$      0.60		$      0.66		$      0.69		$      0.74		$       2.69
Dividends declared per share	$      0.23		$      0.23		$      0.23		$      0.23		$       0.92
Return on average assets	1.31 %		1.48 %		1.55 %		1.69 %		1.51 %
Return on average shareholders' equity	10.50 %		11.62 %		12.32 %		13.71 %		12.01 %
Interest income	$ 238,437		$  232,091		$  223,895		$  208,581		$  903,004
Tax equivalent adjustment	1,672		1,659		1,601		1,424		6,356
Interest income - tax equivalent	240,109		233,750		225,496		210,005		909,360
Interest expense	84,672		76,636		64,663		49,263		275,234
Net interest income - tax equivalent	$ 155,437		$  157,114		$  160,833		$  160,742		$  634,126
Net interest margin	4.21 %		4.28 %		4.43 %		4.51 %		4.36 %
Net interest margin (fully tax equivalent) (1)	4.26 %		4.33 %		4.48 %		4.55 %		4.40 %
Full-time equivalent employees	2,129		2,121		2,193		2,066

(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
	2024		2024		2023		2023		2023		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$      193,794		$      199,407		$      213,059		$      220,335		$      217,385		(2.8) %		(10.9) %
Interest-bearing deposits with other banks	738,555		751,290		792,960		452,867		485,241		(1.7) %		52.2 %
Investment securities available-for-sale	3,036,758		2,850,667		3,021,126		3,044,361		3,249,404		6.5 %		(6.5) %
Investment securities held-to-maturity	78,921		79,542		80,321		81,236		82,372		(0.8) %		(4.2) %
Other investments	132,412		125,548		129,945		133,725		141,892		5.5 %		(6.7) %
Loans held for sale	16,911		11,534		9,213		12,391		15,267		46.6 %		10.8 %
Loans and leases
Commercial and industrial	3,782,487		3,591,428		3,501,221		3,420,873		3,433,162		5.3 %		10.2 %
Lease financing	534,557		492,862		474,817		399,973		360,801		8.5 %		48.2 %
Construction real estate	741,406		641,596		564,832		578,824		536,464		15.6 %		38.2 %
Commercial real estate	4,076,596		4,145,969		4,080,939		3,992,654		4,048,460		(1.7) %		0.7 %
Residential real estate	1,377,290		1,344,677		1,333,674		1,293,470		1,221,484		2.4 %		12.8 %
Home equity	800,860		773,811		758,676		743,991		728,711		3.5 %		9.9 %
Installment	148,530		153,838		159,078		160,648		165,216		(3.5) %		(10.1) %
Credit card	59,477		60,939		59,939		56,386		55,911		(2.4) %		6.4 %
Total loans	11,521,203		11,205,120		10,933,176		10,646,819		10,550,209		2.8 %		9.2 %
Less:
Allowance for credit losses	(156,185)		(144,274)		(141,433)		(145,201)		(148,646)		8.3 %		5.1 %
Net loans	11,365,018		11,060,846		10,791,743		10,501,618		10,401,563		2.7 %		9.3 %
Premises and equipment	197,873		198,428		194,740		192,572		192,077		(0.3) %		3.0 %
Operating leases	167,472		161,473		153,214		136,883		132,272		3.7 %		26.6 %
Goodwill	1,007,656		1,007,656		1,005,868		1,005,868		1,005,828		0.0 %		0.2 %
Other intangibles	83,528		85,603		83,949		86,378		88,662		(2.4) %		(5.8) %
Accrued interest and other assets	1,147,282		1,067,244		1,056,762		1,186,618		1,078,186		7.5 %		6.4 %
Total Assets	$  18,166,180		$ 17,599,238		$  17,532,900		$ 17,054,852		$  17,090,149		3.2 %		6.3 %
LIABILITIES
Deposits
Interest-bearing demand	$   2,922,540		$   2,916,518		$   2,993,219		$   2,880,617		$   2,919,472		0.2 %		0.1 %
Savings	4,628,320		4,467,894		4,331,228		4,023,455		3,785,445		3.6 %		22.3 %
Time	3,049,635		2,896,860		2,718,390		2,572,909		2,484,780		5.3 %		22.7 %
Total interest-bearing deposits	10,600,495		10,281,272		10,042,837		9,476,981		9,189,697		3.1 %		15.4 %
Noninterest-bearing	3,061,427		3,175,876		3,317,960		3,438,572		3,605,181		(3.6) %		(15.1) %
Total deposits	13,661,922		13,457,148		13,360,797		12,915,553		12,794,878		1.5 %		6.8 %
FHLB short-term borrowings	1,040,000		700,000		800,000		755,000		1,050,300		48.6 %		(1.0) %
Other	139,172		162,145		137,814		219,188		165,983		(14.2) %		(16.2) %
Total short-term borrowings	1,179,172		862,145		937,814		974,188		1,216,283		36.8 %		(3.1) %
Long-term debt	338,556		343,236		344,115		340,902		339,963		(1.4) %		(0.4) %
Total borrowed funds	1,517,728		1,205,381		1,281,929		1,315,090		1,556,246		25.9 %		(2.5) %
Accrued interest and other liabilities	660,091		649,706		622,200		694,700		595,606		1.6 %		10.8 %
Total Liabilities	15,839,741		15,312,235		15,264,926		14,925,343		14,946,730		3.4 %		6.0 %
SHAREHOLDERS' EQUITY
Common stock	1,635,705		1,632,971		1,638,972		1,636,054		1,632,659		0.2 %		0.2 %
Retained earnings	1,204,844		1,166,065		1,136,718		1,101,905		1,060,715		3.3 %		13.6 %
Accumulated other comprehensive income (loss)	(323,409)		(321,109)		(309,819)		(410,005)		(353,010)		0.7 %		(8.4) %
Treasury stock, at cost	(190,701)		(190,924)		(197,897)		(198,445)		(196,945)		(0.1) %		(3.2) %
Total Shareholders' Equity	2,326,439		2,287,003		2,267,974		2,129,509		2,143,419		1.7 %		8.5 %
Total Liabilities and Shareholders' Equity	$  18,166,180		$ 17,599,238		$  17,532,900		$ 17,054,852		$  17,090,149		3.2 %		6.3 %

 

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,
	2024		2024		2023		2023		2023		2024		2023
ASSETS
Cash and due from banks	$      174,435		$      204,119		$      214,678		$      211,670		$      221,527		$      189,277		$      220,133
Interest-bearing deposits with other banks	599,348		553,654		548,153		386,173		329,584		576,501		323,837
Investment securities	3,131,541		3,137,665		3,184,408		3,394,237		3,560,453		3,134,603		3,597,678
Loans held for sale	14,075		12,069		12,547		15,420		11,856		13,072		8,711
Loans and leases
Commercial and industrial	3,716,083		3,543,475		3,422,381		3,443,615		3,469,683		3,629,779		3,463,218
Lease financing	509,758		480,540		419,179		371,598		323,819		495,149		288,217
Construction real estate	683,780		603,974		540,314		547,884		518,190		643,877		527,192
Commercial real estate	4,146,764		4,101,238		4,060,733		4,024,798		4,050,946		4,124,001		4,034,077
Residential real estate	1,361,133		1,336,749		1,320,670		1,260,249		1,181,053		1,348,941		1,148,651
Home equity	790,384		765,410		750,925		735,251		726,333		777,897		727,254
Installment	151,753		157,663		160,242		164,092		172,147		154,708		188,947
Credit card	67,200		65,066		64,037		60,827		59,478		66,133		57,524
Total loans	11,426,855		11,054,115		10,738,481		10,608,314		10,501,649		11,240,485		10,435,080
Less:
Allowance for credit losses	(147,666)		(143,950)		(149,398)		(150,297)		(145,578)		(145,808)		(141,024)
Net loans	11,279,189		10,910,165		10,589,083		10,458,017		10,356,071		11,094,677		10,294,056
Premises and equipment	199,096		198,482		194,435		194,228		190,583		198,789		190,465
Operating leases	156,457		154,655		139,331		132,984		138,725		155,556		122,996
Goodwill	1,007,657		1,006,477		1,005,870		1,005,844		1,005,791		1,007,067		1,005,752
Other intangibles	84,577		84,109		85,101		87,427		89,878		84,343		91,225
Accrued interest and other assets	1,081,876		1,044,826		1,151,349		1,065,389		1,063,587		1,063,351		1,100,743
Total Assets	$  17,728,251		$ 17,306,221		$  17,124,955		$  16,951,389		$  16,968,055		$  17,517,236		$  16,955,596
LIABILITIES
Deposits
Interest-bearing demand	$   2,888,252		$   2,895,768		$   2,988,086		$   2,927,416		$   2,906,855		$   2,892,010		$   2,906,784
Savings	4,617,658		4,399,768		4,235,658		3,919,590		3,749,902		4,508,713		3,784,164
Time	2,980,158		2,813,880		2,611,075		2,446,854		2,393,707		2,897,019		2,263,431
Total interest-bearing deposits	10,486,068		10,109,416		9,834,819		9,293,860		9,050,464		10,297,742		8,954,379
Noninterest-bearing	3,144,198		3,169,750		3,368,024		3,493,305		3,663,419		3,156,974		3,808,362
Total deposits	13,630,266		13,279,166		13,202,843		12,787,165		12,713,883		13,454,716		12,762,741
Federal funds purchased and securities sold
under agreements to repurchase	750		4,204		3,586		10,788		21,881		2,477		24,118
FHLB short-term borrowings	669,111		646,187		554,826		878,199		1,028,207		657,649		976,960
Other	161,913		146,127		185,221		175,682		132,088		154,020		135,622
Total short-term borrowings	831,774		796,518		743,633		1,064,669		1,182,176		814,146		1,136,700
Long-term debt	339,472		342,496		340,321		338,402		341,523		340,984		342,565
Total borrowed funds	1,171,246		1,139,014		1,083,954		1,403,071		1,523,699		1,155,130		1,479,265
Accrued interest and other liabilities	645,699		622,479		693,676		607,552		592,708		634,089		603,449
Total Liabilities	15,447,211		15,040,659		14,980,473		14,797,788		14,830,290		15,243,935		14,845,455
SHAREHOLDERS' EQUITY
Common stock	1,634,183		1,637,835		1,637,197		1,634,102		1,631,230		1,636,009		1,632,307
Retained earnings	1,179,827		1,144,447		1,111,786		1,076,515		1,034,092		1,162,137		1,012,057
Accumulated other comprehensive loss	(341,941)		(319,601)		(406,265)		(358,769)		(330,263)		(330,771)		(334,831)
Treasury stock, at cost	(191,029)		(197,119)		(198,236)		(198,247)		(197,294)		(194,074)		(199,392)
Total Shareholders' Equity	2,281,040		2,265,562		2,144,482		2,153,601		2,137,765		2,273,301		2,110,141
Total Liabilities and Shareholders' Equity	$  17,728,251		$ 17,306,221		$  17,124,955		$  16,951,389		$  16,968,055		$  17,517,236		$  16,955,596

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages																		Year-to-Date Averages
		June 30, 2024						March 31, 2024						June 30, 2023						June 30, 2024				June 30, 2023
		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities		$  3,131,541		$  32,999		4.23 %		$  3,137,665		$  31,388		4.01 %		$  3,560,453		$  35,575		4.01 %		$  3,134,603		4.14 %		$  3,597,678		3.97 %
Interest-bearing deposits with other banks		599,348		7,960		5.33 %		553,654		7,458		5.40 %		329,584		3,933		4.79 %		576,501		5.39 %		323,837		4.66 %
Gross loans (1)		11,440,930		211,760		7.42 %		11,066,184		201,840		7.32 %		10,513,505		184,387		7.03 %		11,253,557		7.41 %		10,443,791		6.84 %
Total earning assets		15,171,819		252,719		6.68 %		14,757,503		240,686		6.54 %		14,403,542		223,895		6.23 %		14,964,661		6.65 %		14,365,306		6.07 %
Nonearning assets
Allowance for credit losses		(147,666)						(143,950)						(145,578)						(145,808)				(141,024)
Cash and due from banks		174,435						204,119						221,527						189,277				220,133
Accrued interest and other assets		2,529,663						2,488,549						2,488,564						2,509,106				2,511,181
Total assets		$ 17,728,251						$ 17,306,221						$ 16,968,055						$ 17,517,236				$ 16,955,596
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$  2,888,252		$  14,923		2.07 %		$  2,895,768		$  14,892		2.06 %		$  2,906,855		$    8,351		1.15 %		$  2,892,010		2.08 %		$  2,906,784		1.04 %
Savings		4,617,658		33,142		2.88 %		4,399,768		29,486		2.69 %		3,749,902		14,055		1.50 %		4,508,713		2.80 %		3,784,164		1.16 %
Time		2,980,158		34,957		4.70 %		2,813,880		31,697		4.52 %		2,393,707		21,886		3.67 %		2,897,019		4.64 %		2,263,431		3.48 %
Total interest-bearing deposits		10,486,068		83,022		3.18 %		10,109,416		76,075		3.02 %		9,050,464		44,292		1.96 %		10,297,742		3.12 %		8,954,379		1.71 %
Borrowed funds
Short-term borrowings		831,774		11,395		5.49 %		796,518		10,943		5.51 %		1,182,176		15,536		5.27 %		814,146		5.53 %		1,136,700		5.05 %
Long-term debt		339,472		4,991		5.90 %		342,496		4,928		5.77 %		341,523		4,835		5.68 %		340,984		5.87 %		342,565		5.71 %
Total borrowed funds		1,171,246		16,386		5.61 %		1,139,014		15,871		5.59 %		1,523,699		20,371		5.36 %		1,155,130		5.63 %		1,479,265		5.20 %
Total interest-bearing liabilities		11,657,314		99,408		3.42 %		11,248,430		91,946		3.28 %		10,574,163		64,663		2.45 %		11,452,872		3.37 %		10,433,644		2.20 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		3,144,198						3,169,750						3,663,419						3,156,974				3,808,362
Other liabilities		645,699						622,479						592,708						634,089				603,449
Shareholders' equity		2,281,040						2,265,562						2,137,765						2,273,301				2,110,141
Total liabilities & shareholders' equity		$ 17,728,251						$ 17,306,221						$ 16,968,055						$ 17,517,236				$ 16,955,596
Net interest income		$      153,311						$      148,740						$      159,232						$      302,051				$      318,550
Net interest spread						3.26 %						3.26 %						3.78 %				3.28 %				3.87 %
Net interest margin						4.06 %						4.05 %						4.43 %				4.06 %				4.47 %
Tax equivalent adjustment						0.04 %						0.05 %						0.05 %				0.04 %				0.04 %
Net interest margin (fully tax equivalent)						4.10 %						4.10 %						4.48 %				4.10 %				4.51 %

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

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)
(Dollars in thousands)
(Unaudited)
		Linked Qtr. Income Variance						Comparable Qtr. Income Variance						Year-to-Date Income Variance
		Rate		Volume		Total		Rate		Volume		Total		Rate		Volume		Total
Earning assets
Investment securities		$     1,676		$        (65)		$     1,611		$     1,944		$    (4,520)		$    (2,576)		$     2,993		$    (9,512)		$    (6,519)
Interest-bearing deposits with other banks		(105)		607		502		444		3,583		4,027		1,184		6,757		7,941
Gross loans (2)		2,984		6,936		9,920		10,207		17,166		27,373		29,746		29,761		59,507
Total earning assets		4,555		7,478		12,033		12,595		16,229		28,824		33,923		27,006		60,929
Interest-bearing liabilities
Total interest-bearing deposits		$     3,965		$     2,982		$     6,947		$    27,364		$    11,366		$    38,730		$    62,594		$    20,755		$    83,349
Borrowed funds
Short-term borrowings		(31)		483		452		659		(4,800)		(4,141)		2,702		(8,850)		(6,148)
Long-term debt		107		(44)		63		186		(30)		156		273		(46)		227
Total borrowed funds		76		439		515		845		(4,830)		(3,985)		2,975		(8,896)		(5,921)
Total interest-bearing liabilities		4,041		3,421		7,462		28,209		6,536		34,745		65,569		11,859		77,428
Net interest income (1)		$        514		$     4,057		$     4,571		$  (15,614)		$     9,693		$    (5,921)		$  (31,646)		$    15,147		$  (16,499)

(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,
	2024		2024		2023		2023		2023		2024		2023
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$  144,274		$  141,433		$  145,201		$  148,646		$  141,591		$ 141,433		$ 132,977
Provision for credit losses	16,157		13,419		8,804		12,907		12,719		29,576		21,363
Gross charge-offs
Commercial and industrial	2,149		2,695		6,866		9,207		2,372		4,844		3,102
Lease financing	190		3		4,244		76		90		193		103
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	2		5,319		1		6,008		2,648		5,321		2,714
Residential real estate	6		65		9		10		20		71		20
Home equity	122		25		174		54		21		147		112
Installment	2,034		2,236		2,054		1,349		1,515		4,270		3,039
Credit card	532		794		363		319		274		1,326		491
Total gross charge-offs	5,035		11,137		13,711		17,023		6,940		16,172		9,581
Recoveries
Commercial and industrial	236		162		459		335		631		398		740
Lease financing	1		59		52		1		1		60		2
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	137		38		93		39		153		175		2,391
Residential real estate	37		24		24		44		113		61		179
Home equity	118		80		178		125		232		198		312
Installment	219		145		210		87		90		364		144
Credit card	41		51		123		40		56		92		119
Total recoveries	789		559		1,139		671		1,276		1,348		3,887
Total net charge-offs	4,246		10,578		12,572		16,352		5,664		14,824		5,694
Ending allowance for credit losses	$  156,185		$  144,274		$  141,433		$  145,201		$  148,646		$ 156,185		$ 148,646
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.21 %		0.29 %		0.74 %		1.02 %		0.20 %		0.25 %		0.14 %
Lease financing	0.15 %		(0.05) %		3.97 %		0.08 %		0.11 %		0.05 %		0.07 %
Construction real estate	0.00 %		0.00 %		0.00 %		0.00 %		0.00 %		0.00 %		0.00 %
Commercial real estate	(0.01) %		0.52 %		(0.01) %		0.59 %		0.25 %		0.25 %		0.02 %
Residential real estate	(0.01) %		0.01 %		0.00 %		(0.01) %		(0.03) %		0.00 %		(0.03) %
Home equity	0.00 %		(0.03) %		0.00 %		(0.04) %		(0.12) %		(0.01) %		(0.06) %
Installment	4.81 %		5.33 %		4.57 %		3.05 %		3.32 %		5.08 %		3.09 %
Credit card	2.94 %		4.59 %		1.49 %		1.82 %		1.47 %		3.75 %		1.30 %
Total net charge-offs	0.15 %		0.38 %		0.46 %		0.61 %		0.22 %		0.27 %		0.11 %
COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans
Commercial and industrial	$    17,665		$    14,532		$    15,746		$    17,152		$    21,508		$   17,665		$   21,508
Lease financing	5,374		3,794		3,610		7,731		4,833		5,374		4,833
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	22,942		23,055		27,984		33,019		11,876		22,942		11,876
Residential real estate	12,715		12,836		14,067		12,328		11,697		12,715		11,697
Home equity	3,295		4,036		3,476		3,937		3,239		3,295		3,239
Installment	682		984		870		774		568		682		568
Total nonaccrual loans	62,673		59,237		65,753		74,941		53,721		62,673		53,721
Other real estate owned (OREO)	30		161		106		142		281		30		281
Total nonperforming assets	62,703		59,398		65,859		75,083		54,002		62,703		54,002
Accruing loans past due 90 days or more	1,573		820		2,028		698		873		1,573		873
Total underperforming assets	$    64,276		$    60,218		$    67,887		$    75,781		$    54,875		$   64,276		$   54,875
Total classified assets	$  195,277		$  162,348		$  140,995		$  140,552		$  138,909		$ 195,277		$ 138,909
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	249.21 %		243.55 %		215.10 %		193.75 %		276.70 %		249.21 %		276.70 %
Total ending loans	1.36 %		1.29 %		1.29 %		1.36 %		1.41 %		1.36 %		1.41 %
Nonaccrual loans to total loans	0.54 %		0.53 %		0.60 %		0.70 %		0.51 %		0.54 %		0.51 %
Nonperforming assets to
Ending loans, plus OREO	0.54 %		0.53 %		0.60 %		0.71 %		0.51 %		0.54 %		0.51 %
Total assets	0.35 %		0.34 %		0.38 %		0.44 %		0.32 %		0.35 %		0.32 %
Classified assets to total assets	1.07 %		0.92 %		0.80 %		0.82 %		0.81 %		1.07 %		0.81 %

 

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(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,		June 30,
	2024		2024		2023		2023		2023		2024		2023
PER COMMON SHARE
Market Price
High	$           23.78		$           23.68		$           24.28		$           24.02		$           22.27		$           23.78		$           26.24
Low	$           20.79		$           21.04		$           17.37		$           19.19		$           18.20		$           20.79		$           18.20
Close	$           22.22		$           22.42		$           23.75		$           19.60		$           20.44		$           22.22		$           20.44
Average shares outstanding - basic	94,438,235		94,218,067		94,063,570		94,030,275		93,924,068		94,328,151		93,828,829
Average shares outstanding - diluted	95,470,093		95,183,998		95,126,316		95,126,269		95,169,348		95,327,045		95,065,334
Ending shares outstanding	95,486,010		95,473,595		95,141,244		95,117,180		95,185,483		95,486,010		95,185,483
Total shareholders' equity	$    2,326,439		$    2,287,003		$    2,267,974		$    2,129,509		$    2,143,419		$    2,326,439		$    2,143,419
REGULATORY CAPITAL	Preliminary										Preliminary
Common equity tier 1 capital	$    1,626,345		$    1,582,113		$    1,568,815		$    1,527,793		$    1,481,913		$    1,626,345		$    1,481,913
Common equity tier 1 capital ratio	11.78 %		11.67 %		11.73 %		11.60 %		11.34 %		11.78 %		11.34 %
Tier 1 capital	$    1,671,258		$    1,626,899		$    1,613,480		$    1,572,248		$    1,526,362		$    1,671,258		$    1,526,362
Tier 1 ratio	12.11 %		12.00 %		12.06 %		11.94 %		11.68 %		12.11 %		11.68 %
Total capital	$    1,997,378		$    1,940,762		$    1,907,441		$    1,868,490		$    1,851,144		$    1,997,378		$    1,851,144
Total capital ratio	14.47 %		14.31 %		14.26 %		14.19 %		14.16 %		14.47 %		14.16 %
Total capital in excess of minimum requirement	$       548,037		$       516,704		$       503,152		$       485,580		$       478,911		$       548,037		$       478,911
Total risk-weighted assets	$  13,803,249		$  13,562,455		$  13,374,177		$  13,170,574		$  13,068,888		$  13,803,249		$  13,068,888
Leverage ratio	9.73 %		9.75 %		9.70 %		9.59 %		9.33 %		9.73 %		9.33 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	12.81 %		12.99 %		12.94 %		12.49 %		12.54 %		12.81 %		12.54 %
Ending tangible shareholders' equity to ending tangible assets (1)	7.23 %		7.23 %		7.17 %		6.50 %		6.56 %		7.23 %		6.56 %
Average shareholders' equity to average assets	12.87 %		13.09 %		12.52 %		12.70 %		12.60 %		12.98 %		12.45 %
Average tangible shareholders' equity to average tangible assets (1)	7.15 %		7.25 %		6.57 %		6.69 %		6.57 %		7.20 %		6.39 %
REPURCHASE PROGRAM (2)
Shares repurchased	0		0		0		0		0		0		0
Average share repurchase price	N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total cost of shares repurchased	N/A		N/A		N/A		N/A		N/A		N/A		N/A

(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 was First Financial Bancorp's (FFBC) earnings per share in Q2 2024?

First Financial Bancorp reported earnings per diluted share of $0.64 in Q2 2024, or $0.65 on an adjusted basis.

How much did FFBC's loan portfolio grow in Q2 2024?

FFBC's loan portfolio grew by $316.1 million in Q2 2024, representing an annualized growth rate of 11.3%.

What was FFBC's net interest margin in Q2 2024?

FFBC's net interest margin was 4.10% on a fully tax-equivalent basis in Q2 2024, unchanged from the previous quarter.

Did FFBC increase its dividend in Q2 2024?

Yes, FFBC's Board of Directors approved a quarterly dividend increase to $0.24 per share, payable on September 16, 2024.

How did FFBC's fee income perform in Q2 2024?

FFBC reported record fee income of $61.5 million in Q2 2024, with significant growth in foreign exchange, leasing, and wealth management services.