First Financial Bancorp Announces Third Quarter 2021 Financial Results

Rhea-AI Summary

First Financial Bancorp (FFBC) reported robust Q3 2021 earnings with net income of $60.0 million ($0.63 per diluted share), a significant increase from $50.9 million in Q2 2021 and $41.5 million in Q3 2020. The return on average assets was 1.49%, while net interest margin stood at 3.32%. Loan growth was strong at $74.8 million, despite a decline in PPP loans. The company recaptured $10.1 million in provisions, driven by improved credit quality, and repurchased 2.5 million shares. The total capital ratio remained high at 14.97%. Performance continues to suggest positive trends in earnings and loan origination.

Positive

• Earnings per diluted share rose to $0.63, up from $0.52 in Q2 2021 and $0.42 in Q3 2020.
• Net interest margin increased to 3.32% and return on average assets was 1.49%.
• Core loan balances grew by $74.8 million, reflecting 3.3% annualized growth.
• Recaptured $10.1 million in provisions indicating improved credit quality.
• Repurchased 2,484,295 shares, totaling 4,633,355 shares in 2021.

Negative

• Total loan balances decreased by $150.6 million, primarily due to $225.4 million in PPP forgiveness.

CINCINNATI, Oct. 21, 2021 /PRNewswire/ --

• Earnings per diluted share of $0.63 and on both GAAP and adjusted⁽¹⁾ basis
• Return on average assets of 1.49% on both GAAP and adjusted⁽¹⁾ basis
• Net interest margin FTE⁽¹⁾ of 3.32%
• Loan growth of $74.8 million, excluding decline in PPP loans
• Provision recapture of $10.1 million
• Repurchased 2,484,295 shares during the quarter

First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2021. 

For the three months ended September 30, 2021, the Company reported net income of $60.0 million, or $0.63 per diluted common share.  These results compare to net income of $50.9 million, or $0.52 per diluted common share, for the second quarter of 2021 and $41.5 million, or $0.42 per diluted common share, for the third quarter of 2020.  For the nine months ended September 30, 2021, First Financial had earnings per diluted common share of $1.64 compared to $1.10 for the same period in 2020.

Return on average assets for the third quarter of 2021 was 1.49% while return on average tangible common equity was 19.03%⁽¹⁾.  These compare to returns on average assets of 1.26% and 1.04%, and returns on average tangible common equity of 16.31%⁽¹⁾ and 13.61%⁽¹⁾, in the second quarter of 2021 and the third quarter of 2020, respectively.

Third quarter 2021 highlights include:

• Net interest margin of 3.32% on a fully tax-equivalent basis⁽¹⁾ in line with expectations
• 1 basis point increase from linked quarter driven by PPP forgiveness, which offset lower yields on earning assets
• Noninterest income of $42.5 million, or $42.2 million as adjusted⁽¹⁾
• Strong mortgage banking income of $8.6 million driven by higher premiums during the period
• Elevated wealth management fees of $5.9 million
• Other noninterest income increased $1.1 million, or 34.3%; driven by income from limited partnership investments and insurance proceeds
• Noninterest expenses of $99.1 million, or $93.6 million as adjusted⁽¹⁾
• Adjustments⁽¹⁾ include:
• $5.3 million of tax credit investment write-downs
• Increase in expenses driven by incentive compensation tied to the Company's strong financial performance and modest increases in marketing costs and professional services
• Efficiency ratio of 63.5%; 60.1% as adjusted⁽¹⁾
• Loan balances declined $150.6 million from the second quarter driven by PPP forgiveness of $225.4 million during the quarter
• Core loan balances increased $74.8 million, or 3.3% on an annualized basis compared to the second quarter
• Non-PPP C&I loan balances increased 16.0% on an annualized basis

 

(1) Financial information in this release that is described as "adjusted" or that is presented on a fully tax equivalent basis is non-GAAP.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

 

• Total Allowance for Credit Losses of $160.5 million; Total quarterly provision recapture of $10.1 million
• Loans and leases - ACL of $148.9 million, 1.59% of total loans; 1.62% of loans excluding PPP
• Unfunded Commitments - ACL of $11.6 million
• Provision recapture driven by improvements in economic conditions, declining classified asset balances, and lower net charge-offs
• Strong capital ratios
• Total capital of 14.97%
• Tier 1 common equity of 11.54%
• Tangible common equity of 8.21%⁽¹⁾; 8.31%⁽¹⁾ excluding PPP loans
• Tangible book value per share of $13.09⁽¹⁾
• Repurchased 2,484,295 shares during third quarter; 4,633,355 shares repurchased in 2021

Archie Brown, President and Chief Executive Officer, commented, "We are pleased to announce third quarter results that are highlighted by robust earnings, loan growth, strong fee income, lower credit costs and improving credit trends."

Mr. Brown continued, "Third quarter results were strong across the board, with earnings per share of $0.63, return on assets of 1.49% and an adjusted⁽¹⁾ efficiency ratio of 60.1%.  Third quarter earnings were the highest they've been since the MainSource merger in 2018, and were highlighted by significant provision recapture of $10.1 million.  Provision recapture during the period was a result of improving credit quality trends, specifically, lower net charge-offs and declines in classified asset balances, and we expect further reductions in credit costs in the fourth quarter of 2021 and the first part of 2022 given our optimism for further economic recovery.  In addition, earnings were positively impacted by elevated mortgage and wealth management revenues and we were encouraged by strong loan originations during the period."

Mr. Brown added, "Total loan balances declined $150.6 million driven by $225.4 million in PPP forgiveness during the quarter.  Core loan balances increased $74.8 million for the period as a result of strong origination activity, which included 16.0% growth in the C&I portfolio on an annualized basis.  Our origination levels more than offset loan payoffs which remained high, particularly in our specialty finance and ICRE units.  Additionally, we are encouraged that loan pipeline activity has increased."

Mr. Brown commented regarding the share repurchase program, "During the quarter we repurchased approximately 2.5 million shares at an average price of $23.04 bringing our total shares repurchased in 2021 to 4.6 million.  When combined with the common dividend, the share repurchases approximate a return to shareholders of 131.7% of quarterly earnings.  There are 366,645 shares remaining in our current buyback authorization."

Mr. Brown concluded, "We were also very pleased to bring our associates back to our physical office locations during the quarter, albeit with greater flexibility than pre-Covid.  We firmly believe we are stronger when we are together, and we have already witnessed how combining best practices learned from the pandemic with our culture of collaboration positively impacts our clients and financial performance."

Full detail of the Company's third quarter 2021 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, October 22, 2021 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (833) 950-0062 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 674818.  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 979537.  The recording will be available until November 5, 2021.  The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at  www.bankatfirst.com.  The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

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

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

Forward-Looking Statements

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

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

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

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2020, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov. 

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

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  As of September 30, 2021, the Company had $16.0 billion in assets, $9.4 billion in loans, $12.7 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 $3.2 billion in assets under management as of September 30, 2021.  The Company operated 139 full service banking centers as of September 30, 2021, primarily in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis.  Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

 

CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,																				Nine months ended,
	Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,				September 30,
	2021				2021				2021				2020				2020				2021				2020
RESULTS OF OPERATIONS
Net income	$	60,012			$	50,888			$	47,315			$	48,312			$	41,477			$	158,215			$	107,498
Net earnings per share - basic	$	0.64			$	0.53			$	0.49			$	0.50			$	0.43			$	1.65			$	1.10
Net earnings per share - diluted	$	0.63			$	0.52			$	0.48			$	0.49			$	0.42			$	1.64			$	1.10
Dividends declared per share	$	0.23			$	0.23			$	0.23			$	0.23			$	0.23			$	0.69			$	0.69
KEY FINANCIAL RATIOS
Return on average assets	1.49		%		1.26		%		1.20		%		1.20		%		1.04		%		1.32		%		0.93		%
Return on average shareholders' equity	10.53		%		9.02		%		8.44		%		8.52		%		7.40		%		9.34		%		6.50		%
Return on average tangible shareholders' equity (1)	19.03		%		16.31		%		15.24		%		15.50		%		13.61		%		16.87		%		12.08		%
Net interest margin	3.28		%		3.27		%		3.35		%		3.45		%		3.32		%		3.30		%		3.46		%
Net interest margin (fully tax equivalent) (1)(2)	3.32		%		3.31		%		3.40		%		3.49		%		3.36		%		3.34		%		3.52		%
Ending shareholders' equity as a percent of ending assets	14.01		%		14.15		%		13.97		%		14.29		%		14.11		%		14.01		%		14.11		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	8.21		%		8.37		%		8.22		%		8.47		%		8.25		%		8.21		%		8.25		%
Risk-weighted assets (1)	10.76		%		11.12		%		11.02		%		11.29		%		11.07		%		10.76		%		11.07		%
Average shareholders' equity as a percent of average assets	14.14		%		13.96		%		14.17		%		14.07		%		14.08		%		14.09		%		14.38		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)	8.35		%		8.23		%		8.38		%		8.26		%		8.18		%		8.32		%		8.29		%
Book value per share	$	23.85			$	23.59			$	23.16			$	23.28			$	22.94			$	23.85			$	22.94
Tangible book value per share (1)	$	13.09			$	13.08			$	12.78			$	12.93			$	12.56			$	13.09			$	12.56
Common equity tier 1 ratio (3)	11.54		%		11.78		%		11.81		%		11.82		%		11.63		%		11.54		%		11.63		%
Tier 1 ratio (3)	11.92		%		12.16		%		12.19		%		12.20		%		12.02		%		11.92		%		12.02		%
Total capital ratio (3)	14.97		%		15.31		%		15.41		%		15.55		%		15.37		%		14.97		%		15.37		%
Leverage ratio (3)	9.05		%		9.14		%		9.34		%		9.55		%		9.55		%		9.05		%		9.55		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$	9,502,750			$	9,831,965			$	9,951,855			$	10,127,881			$	10,253,392			$	9,760,545			$	9,827,033
Investment securities	4,189,253				4,130,207				3,782,993				3,403,839				3,162,832				4,035,639				3,147,655
Interest-bearing deposits with other banks	32,400				45,593				46,912				143,884				40,277				41,582				57,138
Total earning assets	$	13,724,403			$	14,007,765			$	13,781,760			$	13,675,604			$	13,456,501			$	13,837,766			$	13,031,826
Total assets	$	15,995,808			$	16,215,469			$	16,042,654			$	16,030,986			$	15,842,010			$	16,084,472			$	15,360,642
Noninterest-bearing deposits	$	3,981,404			$	4,003,626			$	3,840,046			$	3,720,417			$	3,535,432			$	3,942,210			$	3,172,841
Interest-bearing deposits	8,685,949				8,707,553				8,531,822				8,204,306				8,027,082				8,642,339				8,004,450
Total deposits	$	12,667,353			$	12,711,179			$	12,371,868			$	11,924,723			$	11,562,514			$	12,584,549			$	11,177,291
Borrowings	$	562,964			$	749,114			$	886,379			$	1,307,461			$	1,519,748			$	731,634			$	1,509,482
Shareholders' equity	$	2,261,293			$	2,263,687			$	2,272,749			$	2,256,062			$	2,230,422			$	2,265,868			$	2,208,753
CREDIT QUALITY RATIOS
Allowance to ending loans	1.59		%		1.68		%		1.71		%		1.77		%		1.65		%		1.59		%		1.65		%
Allowance to nonaccrual loans	225.73		%		184.77		%		199.33		%		217.55		%		216.28		%		225.73		%		216.28		%
Allowance to nonperforming loans	192.35		%		162.12		%		175.44		%		199.97		%		196.69		%		192.35		%		196.69		%
Nonperforming loans to total loans	0.83		%		1.03		%		0.97		%		0.89		%		0.84		%		0.83		%		0.84		%
Nonperforming assets to ending loans, plus OREO	0.83		%		1.04		%		0.98		%		0.90		%		0.86		%		0.83		%		0.86		%
Nonperforming assets to total assets	0.49		%		0.62		%		0.60		%		0.56		%		0.55		%		0.49		%		0.55		%
Classified assets to total assets	1.04		%		1.14		%		1.22		%		0.89		%		0.84		%		1.04		%		0.84		%
Net charge-offs to average loans (annualized)	0.10		%		0.23		%		0.38		%		0.26		%		0.21		%		0.24		%		0.10		%

(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)	September 30, 2021 regulatory capital ratios are preliminary.
(4)	Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	Three months ended,											Nine months ended,
	September 30,											September 30,
	2021				2020				% Change			2021				2020				% Change
Interest income
Loans and leases, including fees	$	96,428			$	103,249			(6.6)	%		$	292,853			$	324,924			(9.9)	%
Investment securities
Taxable	20,088				17,906				12.2	%		58,219				55,387				5.1	%
Tax-exempt	4,282				4,884				(12.3)	%		14,196				14,403				(1.4)	%
Total investment securities interest	24,370				22,790				6.9	%		72,415				69,790				3.8	%
Other earning assets	23				31				(25.8)	%		76				220				(65.5)	%
Total interest income	120,821				126,070				(4.2)	%		365,344				394,934				(7.5)	%
Interest expense
Deposits	3,320				7,886				(57.9)	%		11,346				36,002				(68.5)	%
Short-term borrowings	68				51				33.3	%		188				6,412				(97.1)	%
Long-term borrowings	4,023				5,953				(32.4)	%		12,498				14,482				(13.7)	%
Total interest expense	7,411				13,890				(46.6)	%		24,032				56,896				(57.8)	%
Net interest income	113,410				112,180				1.1	%		341,312				338,038				1.0	%
Provision for credit losses-loans and leases	(8,193)				15,299				(153.6)	%		(9,499)				57,038				(116.7)	%
Provision for credit losses-unfunded commitments	(1,951)				(1,925)				1.4	%		(896)				2,013				(144.5)	%
Net interest income after provision for credit losses	123,554				98,806				25.0	%		351,707				278,987				26.1	%
Noninterest income
Service charges on deposit accounts	8,548				7,356				16.2	%		23,231				21,792				6.6	%
Trust and wealth management fees	5,896				4,940				19.4	%		17,742				15,891				11.6	%
Bankcard income	3,838				3,124				22.9	%		10,698				8,666				23.4	%
Client derivative fees	2,273				2,203				3.2	%		5,624				8,292				(32.2)	%
Foreign exchange income	9,191				10,530				(12.7)	%		31,985				27,072				18.1	%
Net gains from sales of loans	8,586				18,594				(53.8)	%		26,529				38,087				(30.3)	%
Net gains (losses) on sale of investment securities	(314)				2				N/M			(745)				(55)				N/M
Unrealized  gain (loss) on equity  securities	108				18				N/M			381				70				N/M
Other	4,411				2,732				61.5	%		10,401				7,793				33.5	%
Total noninterest income	42,537				49,499				(14.1)	%		125,846				127,608				(1.4)	%
Noninterest expenses
Salaries and employee benefits	61,717				63,769				(3.2)	%		183,754				174,516				5.3	%
Net occupancy	5,571				5,625				(1.0)	%		16,810				17,107				(1.7)	%
Furniture and equipment	3,318				3,638				(8.8)	%		10,658				11,372				(6.3)	%
Data processing	7,951				6,837				16.3	%		23,102				20,245				14.1	%
Marketing	2,435				1,856				31.2	%		5,831				4,415				32.1	%
Communication	669				855				(21.8)	%		2,253				2,652				(15.0)	%
Professional services	2,199				2,443				(10.0)	%		5,678				6,923				(18.0)	%
State intangible tax	1,202				1,514				(20.6)	%		3,605				4,544				(20.7)	%
FDIC assessments	1,466				1,350				8.6	%		4,177				4,045				3.3	%
Intangible amortization	2,479				2,779				(10.8)	%		7,438				8,362				(11.0)	%
Other	10,051				6,845				46.8	%		27,901				21,685				28.7	%
Total noninterest expenses	99,058				97,511				1.6	%		291,207				275,866				5.6	%
Income before income taxes	67,033				50,794				32.0	%		186,346				130,729				42.5	%
Income tax expense	7,021				9,317				(24.6)	%		28,131				23,231				21.1	%
Net income	$	60,012			$	41,477			44.7	%		$	158,215			$	107,498			47.2	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.64			$	0.43						$	1.65			$	1.10
Net earnings per share - diluted	$	0.63			$	0.42						$	1.64			$	1.10
Dividends declared per share	$	0.23			$	0.23						$	0.69			$	0.69
Return on average assets	1.49		%		1.04		%					1.32		%		0.93		%
Return on average shareholders' equity	10.53		%		7.40		%					9.34		%		6.50		%
Interest income	$	120,821			$	126,070			(4.2)	%		$	365,344			$	394,934			(7.5)	%
Tax equivalent adjustment	1,434				1,628				(11.9)	%		4,705				4,916				(4.3)	%
Interest income - tax equivalent	122,255				127,698				(4.3)	%		370,049				399,850				(7.5)	%
Interest expense	7,411				13,890				(46.6)	%		24,032				56,896				(57.8)	%
Net interest income - tax equivalent	$	114,844			$	113,808			0.9	%		$	346,017			$	342,954			0.9	%
Net interest margin	3.28		%		3.32		%					3.30		%		3.46		%
Net interest margin (fully tax equivalent) (1)	3.32		%		3.36		%					3.34		%		3.52		%
Full-time equivalent employees	2,026				2,065
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2021
	Third				Second				First				Year to				% Change
	Quarter				Quarter				Quarter				Date				Linked Qtr.
Interest income
Loans and leases, including fees	$	96,428			$	97,494			$	98,931			$	292,853			(1.1)	%
Investment securities
Taxable	20,088				19,524				18,607				58,219				2.9	%
Tax-exempt	4,282				4,871				5,043				14,196				(12.1)	%
Total investment securities interest	24,370				24,395				23,650				72,415				(0.1)	%
Other earning assets	23				25				28				76				(8.0)	%
Total interest income	120,821				121,914				122,609				365,344				(0.9)	%
Interest expense
Deposits	3,320				3,693				4,333				11,346				(10.1)	%
Short-term borrowings	68				53				67				188				28.3	%
Long-term borrowings	4,023				4,142				4,333				12,498				(2.9)	%
Total interest expense	7,411				7,888				8,733				24,032				(6.0)	%
Net interest income	113,410				114,026				113,876				341,312				(0.5)	%
Provision for credit losses-loans and leases	(8,193)				(4,756)				3,450				(9,499)				72.3	%
Provision for credit losses-unfunded commitments	(1,951)				517				538				(896)				(477.4)	%
Net interest income after provision for credit losses	123,554				118,265				109,888				351,707				4.5	%
Noninterest income
Service charges on deposit accounts	8,548				7,537				7,146				23,231				13.4	%
Trust and wealth management fees	5,896				6,216				5,630				17,742				(5.1)	%
Bankcard income	3,838				3,732				3,128				10,698				2.8	%
Client derivative fees	2,273				1,795				1,556				5,624				26.6	%
Foreign exchange income	9,191				12,037				10,757				31,985				(23.6)	%
Net gains from sales of loans	8,586				8,489				9,454				26,529				1.1	%
Net gains (losses) on sale of investment securities	(314)				(265)				(166)				(745)				18.5	%
Unrealized  gain (loss) on equity  securities	108				161				112				381				(32.9)	%
Other	4,411				3,285				2,705				10,401				34.3	%
Total noninterest income	42,537				42,987				40,322				125,846				(1.0)	%
Noninterest expenses
Salaries and employee benefits	61,717				60,784				61,253				183,754				1.5	%
Net occupancy	5,571				5,535				5,704				16,810				0.7	%
Furniture and equipment	3,318				3,371				3,969				10,658				(1.6)	%
Data processing	7,951				7,864				7,287				23,102				1.1	%
Marketing	2,435				2,035				1,361				5,831				19.7	%
Communication	669				746				838				2,253				(10.3)	%
Professional services	2,199				2,029				1,450				5,678				8.4	%
State intangible tax	1,202				1,201				1,202				3,605				0.1	%
FDIC assessments	1,466				1,362				1,349				4,177				7.6	%
Intangible amortization	2,479				2,480				2,479				7,438				0.0	%
Other	10,051				12,236				5,614				27,901				(17.9)	%
Total noninterest expenses	99,058				99,643				92,506				291,207				(0.6)	%
Income before income taxes	67,033				61,609				57,704				186,346				8.8	%
Income tax expense	7,021				10,721				10,389				28,131				(34.5)	%
Net income	$	60,012			$	50,888			$	47,315			$	158,215			17.9	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.64			$	0.53			$	0.49			$	1.65
Net earnings per share - diluted	$	0.63			$	0.52			$	0.48			$	1.64
Dividends declared per share	$	0.23			$	0.23			$	0.23			$	0.69
Return on average assets	1.49		%		1.26		%		1.20		%		1.32		%
Return on average shareholders' equity	10.53		%		9.02		%		8.44		%		9.34		%
Interest income	$	120,821			$	121,914			$	122,609			$	365,344			(0.9)	%
Tax equivalent adjustment	1,434				1,619				1,652				4,705				(11.4)	%
Interest income - tax equivalent	122,255				123,533				124,261				370,049				(1.0)	%
Interest expense	7,411				7,888				8,733				24,032				(6.0)	%
Net interest income - tax equivalent	$	114,844			$	115,645			$	115,528			$	346,017			(0.7)	%
Net interest margin	3.28		%		3.27		%		3.35		%		3.30		%
Net interest margin (fully tax equivalent) (1)	3.32		%		3.31		%		3.40		%		3.34		%
Full-time equivalent employees	2,026				2,053				2,063
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

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

 

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,				% Change			% Change
	2021				2021				2021				2020				2020				Linked Qtr.			Comp Qtr.
ASSETS
Cash and due from banks	$	209,748			$	206,918			$	210,191			$	231,054			$	207,128			1.4	%		1.3	%
Interest-bearing deposits with other banks	29,799				38,610				19,180				20,305				38,806				(22.8)	%		(23.2)	%
Investment securities available-for-sale	4,114,094				3,955,839				3,753,763				3,424,580				3,004,963				4.0	%		36.9	%
Investment securities held-to-maturity	103,886				112,456				121,945				131,687				118,072				(7.6)	%		(12.0)	%
Other investments	97,831				129,432				131,814				133,198				118,292				(24.4)	%		(17.3)	%
Loans held for sale	33,835				31,546				34,590				41,103				69,008				7.3	%		(51.0)	%
Loans and leases
Commercial and industrial	2,602,848				2,701,203				3,044,825				3,007,509				3,292,313				(3.6)	%		(20.9)	%
Lease financing	67,855				68,229				66,574				72,987				74,742				(0.5)	%		(9.2)	%
Construction real estate	477,004				630,329				642,709				636,096				575,648				(24.3)	%		(17.1)	%
Commercial real estate	4,438,374				4,332,561				4,396,582				4,307,858				4,347,125				2.4	%		2.1	%
Residential real estate	922,492				932,112				946,522				1,003,086				1,027,702				(1.0)	%		(10.2)	%
Home equity	709,050				711,756				709,667				743,099				754,743				(0.4)	%		(6.1)	%
Installment	96,077				89,143				82,421				81,850				84,629				7.8	%		13.5	%
Credit card	47,231				46,177				44,669				48,485				43,907				2.3	%		7.6	%
Total loans	9,360,931				9,511,510				9,933,969				9,900,970				10,200,809				(1.6)	%		(8.2)	%
Less:
Allowance for credit losses	(148,903)				(159,590)				(169,923)				(175,679)				(168,544)				(6.7)	%		(11.7)	%
Net loans	9,212,028				9,351,920				9,764,046				9,725,291				10,032,265				(1.5)	%		(8.2)	%
Premises and equipment	192,580				192,238				204,537				207,211				209,474				0.2	%		(8.1)	%
Goodwill	937,771				937,771				937,771				937,771				937,771				0.0	%		0.0	%
Other intangibles	56,811				59,391				61,984				64,552				67,419				(4.3)	%		(15.7)	%
Accrued interest and other assets	968,210				1,021,798				935,250				1,056,382				1,122,449				(5.2)	%		(13.7)	%
Total Assets	$	15,956,593			$	16,037,919			$	16,175,071			$	15,973,134			$	15,925,647			(0.5)	%		0.2	%
LIABILITIES
Deposits
Interest-bearing demand	$	2,916,860			$	2,963,151			$	2,914,761			$	2,914,787			$	2,632,467			(1.6)	%		10.8	%
Savings	4,223,905				4,093,229				4,006,181				3,680,774				3,446,678				3.2	%		22.6	%
Time	1,517,419				1,548,109				1,731,757				1,872,733				1,935,392				(2.0)	%		(21.6)	%
Total interest-bearing deposits	8,658,184				8,604,489				8,652,699				8,468,294				8,014,537				0.6	%		8.0	%
Noninterest-bearing	4,019,197				3,901,691				3,995,370				3,763,709				3,552,893				3.0	%		13.1	%
Total deposits	12,677,381				12,506,180				12,648,069				12,232,003				11,567,430				1.4	%		9.6	%
Federal funds purchased and securities sold
under agreements to repurchase	81,850				255,791				181,387				166,594				247,658				(68.0)	%		(67.0)	%
FHLB short-term borrowings	107,000				217,000				0				0				0				(50.7)	%		100.0	%
Total short-term borrowings	188,850				472,791				181,387				166,594				247,658				(60.1)	%		(23.7)	%
Long-term debt	313,230				313,039				583,722				776,202				1,341,164				0.1	%		(76.6)	%
Total borrowed funds	502,080				785,830				765,109				942,796				1,588,822				(36.1)	%		(68.4)	%
Accrued interest and other liabilities	540,962				476,402				502,951				516,265				521,580				13.6	%		3.7	%
Total Liabilities	13,720,423				13,768,412				13,916,129				13,691,064				13,677,832				(0.3)	%		0.3	%
SHAREHOLDERS' EQUITY
Common stock	1,637,065				1,635,470				1,633,137				1,638,947				1,637,489				0.1	%		0.0	%
Retained earnings	812,082				773,857				745,220				720,429				694,484				4.9	%		16.9	%
Accumulated other comprehensive income (loss)	14,230				30,735				18,101				48,664				42,266				(53.7)	%		(66.3)	%
Treasury stock, at cost	(227,207)				(170,555)				(137,516)				(125,970)				(126,424)				33.2	%		79.7	%
Total Shareholders' Equity	2,236,170				2,269,507				2,258,942				2,282,070				2,247,815				(1.5)	%		(0.5)	%
Total Liabilities and Shareholders' Equity	$	15,956,593			$	16,037,919			$	16,175,071			$	15,973,134			$	15,925,647			(0.5)	%		0.2	%

 

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages																				Year-to-Date Averages
	Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,				Sep. 30,
	2021				2021				2021				2020				2020				2021				2020
ASSETS
Cash and due from banks	$	245,212			$	237,964			$	232,275			$	228,427			$	233,216			$	238,531			$	251,147
Interest-bearing deposits with other banks	32,400				45,593				46,912				143,884				40,277				41,582				57,138
Investment securities	4,189,253				4,130,207				3,782,993				3,403,839				3,162,832				4,035,639				3,147,655
Loans held for sale	28,365				28,348				29,689				42,402				45,186				28,796				31,700
Loans and leases
Commercial and industrial	2,634,306				2,953,185				3,029,716				3,182,749				3,299,259				2,870,954				2,937,601
Lease financing	67,159				66,124				70,508				74,107				78,500				67,918				81,821
Construction real estate	567,091				630,351				647,655				608,401				536,870				614,737				511,343
Commercial real estate	4,413,003				4,372,679				4,339,349				4,313,408				4,364,708				4,375,280				4,318,735
Residential real estate	937,969				940,600				980,718				1,022,701				1,041,250				952,939				1,049,869
Home equity	710,794				707,409				726,134				752,425				759,994				714,723				768,469
Installment	93,937				84,768				81,377				83,509				82,016				86,740				80,760
Credit card	50,126				48,501				46,709				48,179				45,609				48,458				46,735
Total loans	9,474,385				9,803,617				9,922,166				10,085,479				10,208,206				9,731,749				9,795,333
Less:
Allowance for credit losses	(157,727)				(169,979)				(177,863)				(172,201)				(165,270)				(168,449)				(147,349)
Net loans	9,316,658				9,633,638				9,744,303				9,913,278				10,042,936				9,563,300				9,647,984
Premises and equipment	193,775				200,558				206,628				208,800				211,454				200,273				213,626
Goodwill	937,771				937,771				937,771				937,771				937,771				937,771				937,771
Other intangibles	58,314				60,929				63,529				66,195				69,169				60,905				72,079
Accrued interest and other assets	994,060				940,461				998,554				1,086,390				1,099,169				977,675				1,001,542
Total Assets	$	15,995,808			$	16,215,469			$	16,042,654			$	16,030,986			$	15,842,010			$	16,084,472			$	15,360,642
LIABILITIES
Deposits
Interest-bearing demand	$	2,960,388			$	2,973,930			$	2,948,682			$	2,812,748			$	2,668,635			$	2,961,043			$	2,563,633
Savings	4,150,610				4,096,077				3,815,314				3,547,179				3,342,514				4,021,895				3,164,753
Time	1,574,951				1,637,546				1,767,826				1,844,379				2,015,933				1,659,401				2,276,064
Total interest-bearing deposits	8,685,949				8,707,553				8,531,822				8,204,306				8,027,082				8,642,339				8,004,450
Noninterest-bearing	3,981,404				4,003,626				3,840,046				3,720,417				3,535,432				3,942,210				3,172,841
Total deposits	12,667,353				12,711,179				12,371,868				11,924,723				11,562,514				12,584,549				11,177,291
Federal funds purchased and securities sold
under agreements to repurchase	186,401				194,478				184,483				136,795				150,088				188,461				153,146
FHLB short-term borrowings	63,463				40,846				67,222				7,937				30,868				57,163				587,566
Total short-term borrowings	249,864				235,324				251,705				144,732				180,956				245,624				740,712
Long-term debt	313,100				513,790				634,674				1,162,729				1,338,792				486,010				768,770
Total borrowed funds	562,964				749,114				886,379				1,307,461				1,519,748				731,634				1,509,482
Accrued interest and other liabilities	504,198				491,489				511,658				542,740				529,326				502,421				465,116
Total Liabilities	13,734,515				13,951,782				13,769,905				13,774,924				13,611,588				13,818,604				13,151,889
SHAREHOLDERS' EQUITY
Common stock	1,635,833				1,633,950				1,636,884				1,638,032				1,636,107				1,635,552				1,636,453
Retained earnings	783,760				754,456				726,351				703,257				679,980				755,066				666,184
Accumulated other comprehensive loss	36,917				25,832				42,253				40,960				40,697				34,981				30,632
Treasury stock, at cost	(195,217)				(150,551)				(132,739)				(126,187)				(126,362)				(159,731)				(124,516)
Total Shareholders' Equity	2,261,293				2,263,687				2,272,749				2,256,062				2,230,422				2,265,868				2,208,753
Total Liabilities and Shareholders' Equity	$	15,995,808			$	16,215,469			$	16,042,654			$	16,030,986			$	15,842,010			$	16,084,472			$	15,360,642

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages																					Year-to-Date Averages
		September 30, 2021							June 30, 2021							September 30, 2020							September 30, 2021							September 30, 2020
		Balance				Yield			Balance				Yield			Balance				Yield			Balance				Yield			Balance				Yield
Earning assets
Investments:
Investment securities		$	4,189,253			2.31	%		$	4,130,207			2.37	%		$	3,162,832			2.86	%		$	4,035,639			2.40	%		$	3,147,655			2.96	%
Interest-bearing deposits with other banks		32,400				0.28	%		45,593				0.22	%		40,277				0.31	%		41,582				0.24	%		57,138				0.51	%
Gross loans (1)		9,502,750				4.03	%		9,831,965				3.98	%		10,253,392				4.00	%		9,760,545				4.01	%		9,827,033				4.42	%
Total earning assets		13,724,403				3.49	%		14,007,765				3.49	%		13,456,501				3.72	%		13,837,766				3.53	%		13,031,826				4.05	%
Nonearning assets
Allowance for credit losses		(157,727)							(169,979)							(165,270)							(168,449)							(147,349)
Cash and due from banks		245,212							237,964							233,216							238,531							251,147
Accrued interest and other assets		2,183,920							2,139,719							2,317,563							2,176,624							2,225,018
Total assets		$	15,995,808						$	16,215,469						$	15,842,010						$	16,084,472						$	15,360,642
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$	2,960,388			0.06	%		$	2,973,930			0.07	%		$	2,668,635			0.08	%		$	2,961,043			0.07	%		$	2,563,633			0.21	%
Savings		4,150,610				0.09	%		4,096,077				0.11	%		3,342,514				0.14	%		4,021,895				0.11	%		3,164,753				0.25	%
Time		1,574,951				0.49	%		1,637,546				0.51	%		2,015,933				1.20	%		1,659,401				0.54	%		2,276,064				1.54	%
Total interest-bearing deposits		8,685,949				0.15	%		8,707,553				0.17	%		8,027,082				0.39	%		8,642,339				0.18	%		8,004,450				0.60	%
Borrowed funds
Short-term borrowings		249,864				0.11	%		235,324				0.09	%		180,956				0.11	%		245,624				0.10	%		740,712				1.16	%
Long-term debt		313,100				5.10	%		513,790				3.23	%		1,338,792				1.76	%		486,010				3.44	%		768,770				2.52	%
Total borrowed funds		562,964				2.88	%		749,114				2.25	%		1,519,748				1.57	%		731,634				2.32	%		1,509,482				1.85	%
Total interest-bearing liabilities		9,248,913				0.32	%		9,456,667				0.33	%		9,546,830				0.58	%		9,373,973				0.34	%		9,513,932				0.80	%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		3,981,404							4,003,626							3,535,432							3,942,210							3,172,841
Other liabilities		504,198							491,489							529,326							502,421							465,116
Shareholders' equity		2,261,293							2,263,687							2,230,422							2,265,868							2,208,753
Total liabilities & shareholders' equity		$	15,995,808						$	16,215,469						$	15,842,010						$	16,084,472						$	15,360,642
Net interest income		$	113,410						$	114,026						$	112,180						$	341,312						$	338,038
Net interest spread						3.17	%						3.16	%						3.14	%						3.19	%						3.25	%
Net interest margin						3.28	%						3.27	%						3.32	%						3.30	%						3.46	%
Tax equivalent adjustment						0.04	%						0.04	%						0.04	%						0.04	%						0.06	%
Net interest margin (fully tax equivalent)						3.32	%						3.31	%						3.36	%						3.34	%						3.52	%
(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		$	(630)			$	605			$	(25)			$	(4,391)			$	5,971			$	1,580			$	(13,309)			$	15,934			$	2,625
Interest-bearing deposits with other banks		7				(9)				(2)				(2)				(6)				(8)				(116)				(28)				(144)
Gross loans (2)		1,190				(2,256)				(1,066)				796				(7,617)				(6,821)				(30,076)				(1,995)				(32,071)
Total earning assets		567				(1,660)				(1,093)				(3,597)				(1,652)				(5,249)				(43,501)				13,911				(29,590)
Interest-bearing liabilities
Total interest-bearing deposits		$	(401)			$	28			$	(373)			$	(4,818)			$	252			$	(4,566)			$	(25,493)			$	837			$	(24,656)
Borrowed funds
Short-term borrowings		10				5				15				(2)				19				17				(5,845)				(379)				(6,224)
Long-term debt		2,388				(2,507)				(119)				11,249				(13,179)				(1,930)				5,287				(7,271)				(1,984)
Total borrowed funds		2,398				(2,502)				(104)				11,247				(13,160)				(1,913)				(558)				(7,650)				(8,208)
Total interest-bearing liabilities		1,997				(2,474)				(477)				6,429				(12,908)				(6,479)				(26,051)				(6,813)				(32,864)
Net interest income (1)		$	(1,430)			$	814			$	(616)			$	(10,026)			$	11,256			$	1,230			$	(17,450)			$	20,724			$	3,274
(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)
																					Nine  months ended
	Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,				Sep. 30,				Sep. 30,
	2021				2021				2021				2020				2020				2021				2020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$	159,590			$	169,923			$	175,679			$	168,544			$	158,661			$	175,679			$	57,650
Day one adoption impact of ASC 326	0				0				0				0				0				0				61,505
Provision for credit losses	(8,193)				(4,756)				3,450				13,758				15,299				(9,499)				57,038
Gross charge-offs
Commercial and industrial	2,617				3,729				7,910				1,505				1,467				14,256				3,840
Lease financing	0				0				0				0				852				0				852
Construction real estate	0				0				2				0				0				2				0
Commercial real estate	1,030				2,041				1,250				6,270				3,789				4,321				5,830
Residential real estate	74				46				1				203				22				121				285
Home equity	200				240				611				386				460				1,051				1,155
Installment	37				77				36				21				59				150				127
Credit card	230				179				222				169				171				631				716
Total gross charge-offs	4,188				6,312				10,032				8,554				6,820				20,532				12,805
Recoveries
Commercial and industrial	869				205				337				367				265				1,411				2,540
Lease financing	0				0				0				(6)				6				0				6
Construction real estate	0				3				0				3				0				3				14
Commercial real estate	223				75				195				844				760				493				1,418
Residential real estate	56				54				44				145				91				154				236
Home equity	426				317				177				428				209				920				704
Installment	53				37				34				65				35				124				93
Credit card	67				44				39				85				38				150				145
Total recoveries	1,694				735				826				1,931				1,404				3,255				5,156
Total net charge-offs	2,494				5,577				9,206				6,623				5,416				17,277				7,649
Ending allowance for credit losses	$	148,903			$	159,590			$	169,923			$	175,679			$	168,544			$	148,903			$	168,544
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.26		%		0.48		%		1.01		%		0.14		%		0.14		%		0.60		%		0.06		%
Lease financing	0.00		%		0.00		%		0.00		%		0.03		%		4.29		%		0.00		%		1.38		%
Construction real estate	0.00		%		0.00		%		0.00		%		0.00		%		0.00		%		0.00		%		0.00		%
Commercial real estate	0.07		%		0.18		%		0.10		%		0.50		%		0.28		%		0.12		%		0.14		%
Residential real estate	0.01		%		0.00		%		(0.02)		%		0.02		%		(0.03)		%		0.00		%		0.01		%
Home equity	(0.13)		%		(0.04)		%		0.24		%		(0.02)		%		0.13		%		0.02		%		0.08		%
Installment	(0.07)		%		0.19		%		0.01		%		(0.21)		%		0.12		%		0.04		%		0.06		%
Credit card	1.29		%		1.12		%		1.59		%		0.69		%		1.16		%		1.33		%		1.63		%
Total net charge-offs	0.10		%		0.23		%		0.38		%		0.26		%		0.21		%		0.24		%		0.10		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$	15,160			$	27,426			$	24,941			$	29,230			$	34,686			$	15,160			$	34,686
Lease financing	0				16				0				0				1,092				0				1,092
Construction real estate	0				0				0				0				0				0				0
Commercial real estate	38,564				45,957				44,514				34,682				24,521				38,564				24,521
Residential real estate	9,416				9,480				11,359				11,601				12,104				9,416				12,104
Home equity	2,735				3,376				4,286				5,076				5,374				2,735				5,374
Installment	91				115				146				163				153				91				153
Nonaccrual loans	65,966				86,370				85,246				80,752				77,930				65,966				77,930
Accruing troubled debt restructurings (TDRs)	11,448				12,070				11,608				7,099				7,759				11,448				7,759
Total nonperforming loans	77,414				98,440				96,854				87,851				85,689				77,414				85,689
Other real estate owned (OREO)	340				340				854				1,287				1,643				340				1,643
Total nonperforming assets	77,754				98,780				97,708				89,138				87,332				77,754				87,332
Accruing loans past due 90 days or more	104				155				92				169				79				104				79
Total underperforming assets	$	77,858			$	98,935			$	97,800			$	89,307			$	87,411			$	77,858			$	87,411
Total classified assets	$	165,462			$	182,516			$	196,782			$	142,021			$	134,002			$	165,462			$	134,002
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	225.73		%		184.77		%		199.33		%		217.55		%		216.28		%		225.73		%		216.28		%
Nonperforming loans	192.35		%		162.12		%		175.44		%		199.97		%		196.69		%		192.35		%		196.69		%
Total ending loans	1.59		%		1.68		%		1.71		%		1.77		%		1.65		%		1.59		%		1.65		%
Nonperforming loans to total loans	0.83		%		1.03		%		0.97		%		0.89		%		0.84		%		0.83		%		0.84		%
Nonperforming assets to
Ending loans, plus OREO	0.83		%		1.04		%		0.98		%		0.90		%		0.86		%		0.83		%		0.86		%
Total assets	0.49		%		0.62		%		0.60		%		0.56		%		0.55		%		0.49		%		0.55		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.71		%		0.91		%		0.87		%		0.83		%		0.78		%		0.71		%		0.78		%
Total assets	0.42		%		0.54		%		0.53		%		0.51		%		0.50		%		0.42		%		0.50		%
Classified assets to total assets	1.04		%		1.14		%		1.22		%		0.89		%		0.84		%		1.04		%		0.84		%
(1)  Nonaccrual loans include nonaccrual TDRs of $20.3 million,  $21.5  million, $20.9 million, $14.7 million, and $29.3 million, as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020,  respectively.

 

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																					Nine months ended,
	Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,				Sep. 30,				Sep. 30,
	2021				2021				2021				2020				2020				2021				2020
PER COMMON SHARE
Market Price
High	$	24.06			$	26.02			$	26.40			$	17.77			$	15.15			$	26.40			$	25.52
Low	$	21.48			$	23.35			$	17.62			$	12.07			$	11.40			$	17.62			$	11.40
Close	$	23.41			$	23.63			$	24.00			$	17.53			$	12.01			$	23.41			$	12.01
Average shares outstanding - basic	94,289,097				96,123,645				96,873,940				97,253,787				97,247,080				95,752,759				97,400,942
Average shares outstanding - diluted	95,143,930				97,009,712				97,727,527				98,020,534				98,008,733				96,617,600				98,117,463
Ending shares outstanding	93,742,797				96,199,509				97,517,693				98,021,929				97,999,763				93,742,797				97,999,763
Total shareholders' equity	$	2,236,170			$	2,269,507			$	2,258,942			$	2,282,070			$	2,247,815			$	2,236,170			$	2,247,815
REGULATORY CAPITAL	Preliminary																				Preliminary
Common equity tier 1 capital	$	1,316,059			$	1,333,209			$	1,334,882			$	1,325,922			$	1,293,716			$	1,316,059			$	1,293,716
Common equity tier 1 capital ratio	11.54		%		11.78		%		11.81		%		11.82		%		11.63		%		11.54		%		11.63		%
Tier 1 capital	$	1,359,297			$	1,376,333			$	1,377,892			$	1,368,818			$	1,336,497			$	1,359,297			$	1,336,497
Tier 1 ratio	11.92		%		12.16		%		12.19		%		12.20		%		12.02		%		11.92		%		12.02		%
Total capital	$	1,706,513			$	1,732,930			$	1,741,755			$	1,744,802			$	1,708,817			$	1,706,513			$	1,708,817
Total capital ratio	14.97		%		15.31		%		15.41		%		15.55		%		15.37		%		14.97		%		15.37		%
Total capital in excess of minimum requirement	$	509,536			$	544,478			$	554,834			$	566,795			$	541,263			$	509,536			$	541,263
Total risk-weighted assets	$	11,399,782			$	11,318,590			$	11,304,012			$	11,219,114			$	11,119,560			$	11,399,782			$	11,119,560
Leverage ratio	9.05		%		9.14		%		9.34		%		9.55		%		9.55		%		9.05		%		9.55		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	14.01		%		14.15		%		13.97		%		14.29		%		14.11		%		14.01		%		14.11		%
Ending tangible shareholders' equity to ending tangible assets (1)	8.21		%		8.37		%		8.22		%		8.47		%		8.25		%		8.21		%		8.25		%
Average shareholders' equity to average assets	14.14		%		13.96		%		14.17		%		14.07		%		14.08		%		14.09		%		14.38		%
Average tangible shareholders' equity to average tangible assets (1)	8.35		%		8.23		%		8.38		%		8.26		%		8.18		%		8.32		%		8.29		%
REPURCHASE PROGRAM (2)
Shares repurchased	2,484,295				1,308,945				840,115				0				0				4,633,355				880,000
Average share repurchase price	$	23.04			$	25.11			$	21.40			N/A				N/A				$	23.33			$	18.96
Total cost of shares repurchased	$	57,231			$	32,864			$	17,982			N/A				N/A				$	108,077			$	16,686
(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable

 

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SOURCE First Financial Bancorp.

FAQ

What were First Financial Bancorp's earnings for Q3 2021?

First Financial Bancorp reported earnings of $60.0 million, or $0.63 per diluted share, for Q3 2021.

How much did First Financial Bancorp repurchase in shares during Q3 2021?

The company repurchased 2,484,295 shares during the third quarter of 2021.

What is the return on average assets for First Financial Bancorp in Q3 2021?

The return on average assets for Q3 2021 was 1.49%.

What was the loan growth reported by First Financial Bancorp in Q3 2021?

First Financial Bancorp reported core loan growth of $74.8 million in Q3 2021.

How did First Financial Bancorp's earnings in Q3 2021 compare to previous quarters?

Earnings of $0.63 per share in Q3 2021 were higher than $0.52 in Q2 2021 and $0.42 in Q3 2020.