First Financial Bancorp Announces Stock Repurchase Plan

Rhea-AI Summary

First Financial Bancorp (Nasdaq: FFBC) has authorized a stock repurchase plan to buy up to 5,000,000 shares, equating to about 5% of its outstanding shares as of September 30, 2020. The plan will start post the current repurchase program's expiration on December 31, 2020, lasting for two years. CEO Archie Brown noted the suspension of repurchase activity in early 2020 due to the Covid-19 pandemic but emphasizes this action as part of normal capital planning, aiming to take advantage of future market conditions.

Positive

• Authorization for repurchase of up to 5,000,000 shares enhances shareholder value.
• Repurchase plan shows confidence in company's future amid current economic uncertainties.

Negative

• Suspension of share repurchase activities in early 2020 due to pandemic reflects potential financial strain on the company.

CINCINNATI, Dec. 22, 2020 /PRNewswire/ -- First Financial Bancorp (Nasdaq: FFBC) has announced that its Board of Directors has approved a stock repurchase plan. The plan authorizes the purchase of up to 5,000,000 shares of the Company's common stock, representing approximately 5 percent of the Company's issued and outstanding shares of common stock as of September 30, 2020. The stock repurchase plan will be effective upon the expiration of the Company's current repurchase plan on December 31, 2020, and will continue for two years.

"In response to the Covid-19 pandemic, we decided to suspend share repurchase activity in the first quarter of 2020," said First Financial CEO Archie Brown. "While we currently have no specific timeline for resuming share repurchases, the reauthorization of this plan is a part of our normal capital planning process and provides us with the option to be opportunistic as we gain more clarity around the current economic environment."

Share repurchases will be made periodically as permitted by securities laws and other legal requirements and will be subject to market conditions, as well as other factors. Repurchases may be made in the open market, through block trades or otherwise, and in privately negotiated transactions. Share purchases may be commenced or suspended at any time or periodically without prior notice.

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of September 30, 2020, the Company had $15.9 billion in assets, $10.2 billion in loans, $11.6 billion in deposits and $2.2 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 $2.8 billion in assets under management as of September 30, 2020. The Company operated 143 full service banking centers as of September 30, 2020, primarily in Ohio, Indiana and Kentucky, 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.

View original content:http://www.prnewswire.com/news-releases/first-financial-bancorp-announces-stock-repurchase-plan-301197299.html

SOURCE First Financial Bancorp.

FAQ

What is the stock repurchase plan for First Financial Bancorp (FFBC)?

First Financial Bancorp has approved a plan to buy back up to 5,000,000 shares, around 5% of its outstanding shares.

When does the stock repurchase plan for FFBC go into effect?

The new repurchase plan will take effect after the current program ends on December 31, 2020.

How long will the FFBC stock repurchase plan last?

The stock repurchase plan will continue for two years.

Why did First Financial Bancorp suspend share repurchases in 2020?

The company suspended share repurchase activities in early 2020 in response to the Covid-19 pandemic.

What impact does the stock repurchase plan have on FFBC's stock price?

The repurchase plan is expected to positively affect FFBC's stock price by reducing the number of shares outstanding, potentially increasing earnings per share.