First Financial Bancorp Announces Third Quarter 2024 Financial Results and Quarterly Dividend

Rhea-AI Summary

First Financial Bancorp reported Q3 2024 net income of $52.5 million, or $0.55 per diluted share, compared to $60.8 million ($0.64/share) in Q2 2024. Key highlights include a net interest margin of 4.08% on a tax-equivalent basis, noninterest income of $45.7 million ($58.8 million adjusted), and average deposit growth of $166.2 million (4.9% annualized). The company maintained strong capital ratios with total capital ratio at 14.58% and declared a quarterly dividend of $0.24 per share. Asset quality remained stable with an ACL ratio of 1.37% to total loans and net charge-offs at 0.25%.

Positive

• Net interest margin remains strong at 4.08% on a tax-equivalent basis
• Average deposit growth of $166.2 million (4.9% annualized)
• Strong capital ratios with total capital ratio at 14.58%
• Tangible book value increased 10.2% from previous quarter to $14.26

Negative

• Net income declined to $52.5M from $60.8M in Q2 2024
• EPS decreased to $0.55 from $0.64 in previous quarter
• $17.5M loss on securities, including $9.7M impairment losses
• Slower loan growth at 1% annualized rate

Insights

Financial Analyst

The Q3 2024 results show a mixed but generally positive performance. Key highlights include $0.55 EPS ($0.67 adjusted), with a strong net interest margin of 4.08%. The 1.17% return on average assets (1.42% adjusted) demonstrates solid profitability.

Notable strengths include 4.9% annualized deposit growth and stable asset quality with a 1.37% ACL ratio. The 10.2% increase in tangible book value from the previous quarter is particularly impressive. However, investors should note the $17.5 million loss on securities, including $9.7 million in impairment losses.

Capital ratios remain robust with total capital at 14.58%, providing a strong foundation for the $0.24 quarterly dividend. The efficiency initiative, having eliminated 120 positions, shows management's commitment to cost control.

• Earnings per diluted share of $0.55; $0.67 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.17%; 1.42% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 4.08%
• Noninterest income of $45.7 million; $58.8 million on an adjusted⁽¹⁾ basis
• Average deposit growth of $166.2 million; 4.9% on an annualized basis
• 1.37% ACL ratio to total loans; Net charge-offs 0.25% of total loans
• Tangible book value increased 10.2% from linked quarter to $14.26
• Board of Directors approved quarterly dividend of $0.24

CINCINNATI, Oct. 24, 2024 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2024. 

For the three months ended September 30, 2024, the Company reported net income of $52.5 million, or $0.55 per diluted common share.  These results compare to net income of $60.8 million, or $0.64 per diluted common share, for the second quarter of 2024.  For the nine months ended September 30, 2024, First Financial had earnings per diluted share of $1.74 compared to $2.12 for the same period in 2023.

Return on average assets for the third quarter of 2024 was 1.17% while return on average tangible common equity was 16.29%⁽¹⁾.  These compare to return on average assets of 1.38% and return on average tangible common equity of 20.57%⁽¹⁾ in the second quarter of 2024.

Third quarter 2024 highlights include:

• Net interest margin of 4.05%, or 4.08% on a fully tax-equivalent basis⁽¹⁾
  • 2 bp decline from second quarter, better than initial expectations
  • Slight increase in cost of deposits offset by favorable shift in funding mix; Asset yields flat compared to prior quarter
• Noninterest income of $45.7 million, or $58.8 million as adjusted⁽¹⁾
  • Adjustments include:
    • $17.5 million loss on securities; includes $9.7 million of impairment losses and $8.0 million loss on sales from restructuring activities
    • $4.4 million deferred tax gain
  • Strong results from foreign exchange, wealth management, and leasing businesses
• Noninterest expenses of $125.8 million, or $124.7 million as adjusted⁽¹⁾; 1.8% increase from linked quarter
  • Third quarter adjustments⁽¹⁾ include $0.4 million of efficiency related costs and $0.7 million of other costs such as acquisition, severance and branch consolidation costs
  • Increase driven by $1.8 million increase in leasing business expenses and $0.5 million supplemental contribution to the First Financial Foundation
  • Efficiency ratio of 62.5%; 58.2% as adjusted⁽¹⁾
• Modest loan growth during the quarter
  • Loan balances increased $31.9 million compared to the linked quarter; 1% annualized growth
  • Growth driven by leasing and mortgage
  • Payoffs increased 27% compared to the linked quarter

_________________________________________________________________________________________

⁽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 $166.2 million, or 4.9% on an annualized basis
  • Growth in money market accounts, retail CDs and brokered CDs offset seasonal decline in public funds and modest declines in noninterest bearing checking and savings accounts
• Total Allowance for Credit Losses of $176.0 million; Total quarterly provision expense of $10.6 million
  • Loans and leases - ACL of $158.8 million; ratio to total loans of 1.37% increased 1 bp from second quarter
  • Unfunded Commitments - ACL of $17.1 million
  • Provision expense driven by net charge offs and slower prepayment rates; Classified assets 1.14% of total assets
  • Annualized net charge-offs were 25 bps of total loans
• Capital ratios stable and strong 
  • Total capital ratio increased 11 bps to 14.58%
  • Tier 1 common equity increased 26 bps to 12.04%
  • Tangible common equity of 7.98%⁽¹⁾; 9.34%⁽¹⁾ excluding impact from AOCI
  • Tangible book value per share of $14.26⁽¹⁾; 10.2% 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 December 16, 2024 to shareholders of record as of December 2, 2024.

Archie Brown, President and CEO, commented on third quarter results, "Third quarter financial results reflect our ongoing commitment to industry leading performance.  Adjusted⁽¹⁾ earnings per share were $0.67, which resulted in an adjusted⁽¹⁾ return on assets of 1.42% and an adjusted⁽¹⁾ return on tangible common equity of 19.77%. 

We are particularly pleased with our 4.08% net interest margin.  With only a 2 bp decline from the second quarter, the margin has proven to be more durable than expected due to high asset yields from Agile, investment portfolio restructuring and moderating funding costs. 

Average deposit balances grew 4.9% on an annualized basis, as declines in our low cost products moderated.  Consistent with our expectations, loan growth slowed during the third quarter as softer pipelines in the second quarter led to fewer fundings in the current period.  Loan growth was also impacted by higher payoffs in our commercial banking and investment commercial real estate portfolios.  Loan pipelines strengthened during the third quarter, and we expect higher growth rates as we close out the year." 

Mr. Brown continued, "Third quarter noninterest income was $45.7 million, or $58.8 million on an adjusted⁽¹⁾ basis, with strong earnings from foreign exchange, wealth management and the leasing business.  There were several large non-recurring items that impacted noninterest income, including $17.5 million of losses on securities, which included a $9.7 million impairment charge on two bonds secured by skilled nursing homes.  While third quarter noninterest income was noisy, noninterest expenses were relatively flat compared to the prior quarter.  We remain diligent in managing our expenses, and our workforce efficiency initiative has resulted in the elimination of 120 positions to date, with additional savings expected into 2025." 

Mr. Brown commented on asset quality and capital, "Asset quality was stable for the quarter and our ACL increased to 1.37% of total loans.  Additionally, third quarter net charge-offs were 25 bps on an annualized basis and nonperforming assets as a percent of assets increased 1 bp to 36 bps.  We are optimistic about asset quality and are confident in our ability to manage the portfolio through the expected interest rate reductions and economic uncertainty in the near-term.  

With regard to capital, strong earnings and the decline in interest rates led to significant improvement in tangible book value per share and tangible common equity.  Tangible book value per share increased 10% from the linked quarter and over 30% from the same quarter last year to $14.26, while tangible common equity increased 75 basis points from June 30 to 7.98% as of the end of September."

Mr. Brown concluded, "We are very proud of our financial results in the first nine months of 2024.  Overall, the economy remains healthy, and the general easing of interest rates should extend economic growth in the coming periods.  We believe we are in a strong position to finish the year on a high note and head into 2025 with continued momentum."

Full detail of the Company's third 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, October 25, 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 November 8, 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 September 30, 2024, the Company had $18.1 billion in assets, $11.6 billion in loans, $13.9 billion in deposits and $2.5 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 $3.8 billion in assets under management as of September 30, 2024.  The Company operated 128 full service banking centers as of September 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,										Nine months ended,
	Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,
	2024		2024		2024		2023		2023		2024		2023
RESULTS OF OPERATIONS
Net income	$      52,451		$      60,805		$      50,689		$      56,732		$      63,061		$    163,945		$    199,131
Net earnings per share - basic	$         0.56		$         0.64		$         0.54		$         0.60		$         0.67		$         1.74		$         2.12
Net earnings per share - diluted	$         0.55		$         0.64		$         0.53		$         0.60		$         0.66		$         1.72		$         2.09
Dividends declared per share	$         0.24		$         0.23		$         0.23		$         0.23		$         0.23		$         0.70		$         0.69
KEY FINANCIAL RATIOS
Return on average assets	1.17 %		1.38 %		1.18 %		1.31 %		1.48 %		1.24 %		1.57 %
Return on average shareholders' equity	8.80 %		10.72 %		9.00 %		10.50 %		11.62 %		9.50 %		12.53 %
Return on average tangible shareholders' equity (1)	16.29 %		20.57 %		17.35 %		21.36 %		23.60 %		18.02 %		25.87 %
Net interest margin	4.05 %		4.06 %		4.05 %		4.21 %		4.28 %		4.05 %		4.41 %
Net interest margin (fully tax equivalent) (1)(2)	4.08 %		4.10 %		4.10 %		4.26 %		4.33 %		4.09 %		4.45 %
Ending shareholders' equity as a percent of ending assets	13.50 %		12.81 %		12.99 %		12.94 %		12.49 %		13.50 %		12.49 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	7.98 %		7.23 %		7.23 %		7.17 %		6.50 %		7.98 %		6.50 %
Risk-weighted assets (1)	9.87 %		8.95 %		8.80 %		8.81 %		7.88 %		9.87 %		7.88 %
Average shareholders' equity as a percent of average assets	13.28 %		12.87 %		13.09 %		12.52 %		12.70 %		13.08 %		12.53 %
Average tangible shareholders' equity as a percent of average tangible assets (1)	7.64 %		7.15 %		7.25 %		6.57 %		6.69 %		7.35 %		6.49 %
Book value per share	$        25.66		$        24.36		$        23.95		$        23.84		$        22.39		$        25.66		$        22.39
Tangible book value per share (1)	$        14.26		$        12.94		$        12.50		$        12.38		$        10.91		$        14.26		$        10.91
Common equity tier 1 ratio (3)	12.04 %		11.78 %		11.67 %		11.73 %		11.60 %		12.04 %		11.60 %
Tier 1 ratio (3)	12.37 %		12.11 %		12.00 %		12.06 %		11.94 %		12.37 %		11.94 %
Total capital ratio (3)	14.58 %		14.47 %		14.31 %		14.26 %		14.19 %		14.58 %		14.19 %
Leverage ratio (3)	9.93 %		9.73 %		9.75 %		9.70 %		9.59 %		9.93 %		9.59 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$  11,534,000		$  11,440,930		$  11,066,184		$  10,751,028		$  10,623,734		$  11,347,720		$  10,504,431
Investment securities	3,274,498		3,131,541		3,137,665		3,184,408		3,394,237		3,181,575		3,529,119
Interest-bearing deposits with other banks	483,880		599,348		553,654		548,153		386,173		545,402		344,844
Total earning assets	$  15,292,378		$  15,171,819		$  14,757,503		$  14,483,589		$  14,404,144		$  15,074,697		$  14,378,394
Total assets	$  17,854,191		$  17,728,251		$  17,306,221		$  17,124,955		$  16,951,389		$  17,630,374		$  16,954,178
Noninterest-bearing deposits	$  3,106,239		$  3,144,198		$  3,169,750		$  3,368,024		$  3,493,305		$  3,139,939		$  3,702,189
Interest-bearing deposits	10,690,265		10,486,068		10,109,416		9,834,819		9,293,860		10,429,538		9,068,783
Total deposits	$  13,796,504		$  13,630,266		$  13,279,166		$  13,202,843		$  12,787,165		$  13,569,477		$  12,770,972
Borrowings	$  1,053,737		$  1,171,246		$  1,139,014		$  1,083,954		$  1,403,071		$  1,121,086		$  1,453,588
Shareholders' equity	$  2,371,125		$  2,281,040		$  2,265,562		$  2,144,482		$  2,153,601		$  2,306,147		$  2,124,787
CREDIT QUALITY RATIOS
Allowance to ending loans	1.37 %		1.36 %		1.29 %		1.29 %		1.36 %		1.37 %		1.36 %
Allowance to nonaccrual loans	242.72 %		249.21 %		243.55 %		215.10 %		193.75 %		242.72 %		193.75 %
Nonaccrual loans to total loans	0.57 %		0.54 %		0.53 %		0.60 %		0.70 %		0.57 %		0.70 %
Nonperforming assets to ending loans, plus OREO	0.57 %		0.54 %		0.53 %		0.60 %		0.71 %		0.57 %		0.71 %
Nonperforming assets to total assets	0.36 %		0.35 %		0.34 %		0.38 %		0.44 %		0.36 %		0.44 %
Classified assets to total assets	1.14 %		1.07 %		0.92 %		0.80 %		0.82 %		1.14 %		0.82 %
Net charge-offs to average loans (annualized)	0.25 %		0.15 %		0.38 %		0.46 %		0.61 %		0.26 %		0.28 %

(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, 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,						Nine months ended,
	Sep. 30,						Sep. 30,
	2024		2023		% Change		2024		2023		% Change
Interest income
Loans and leases, including fees	$     215,433		$     192,261		12.1 %		$     629,033		$     546,354		15.1 %
Investment securities
Taxable	32,367		31,297		3.4 %		90,958		95,226		(4.5) %
Tax-exempt	2,616		3,522		(25.7) %		8,412		10,499		(19.9) %
Total investment securities interest	34,983		34,819		0.5 %		99,370		105,725		(6.0) %
Other earning assets	6,703		5,011		33.8 %		22,121		12,488		77.1 %
Total interest income	257,119		232,091		10.8 %		750,524		664,567		12.9 %
Interest expense
Deposits	86,554		57,069		51.7 %		245,651		132,817		85.0 %
Short-term borrowings	9,932		14,615		(32.0) %		32,270		43,101		(25.1) %
Long-term borrowings	5,073		4,952		2.4 %		14,992		14,644		2.4 %
Total interest expense	101,559		76,636		32.5 %		292,913		190,562		53.7 %
Net interest income	155,560		155,455		0.1 %		457,611		474,005		(3.5) %
Provision for credit losses-loans and leases	9,930		12,907		(23.1) %		39,506		34,270		15.3 %
Provision for credit losses-unfunded commitments	694		(1,234)		(156.2) %		(1,279)		(1,393)		(8.2) %
Net interest income after provision for credit losses	144,936		143,782		0.8 %		419,384		441,128		(4.9) %
Noninterest income
Service charges on deposit accounts	7,547		6,957		8.5 %		21,647		20,443		5.9 %
Wealth management fees	6,910		6,943		(0.5) %		20,758		19,990		3.8 %
Bankcard income	3,698		3,406		8.6 %		10,740		10,690		0.5 %
Client derivative fees	1,160		1,612		(28.0) %		3,173		4,444		(28.6) %
Foreign exchange income	12,048		13,384		(10.0) %		39,270		45,321		(13.4) %
Leasing business income	16,811		14,537		15.6 %		48,228		38,466		25.4 %
Net gains from sales of loans	5,021		4,086		22.9 %		13,284		10,260		29.5 %
Net gain (loss) on investment securities	(17,468)		(58)		N/M		(22,719)		(403)		N/M
Other	9,974		5,761		73.1 %		19,333		16,218		19.2 %
Total noninterest income	45,701		56,628		(19.3) %		153,714		165,429		(7.1) %
Noninterest expenses
Salaries and employee benefits	74,813		75,641		(1.1) %		224,075		222,094		0.9 %
Net occupancy	5,919		5,809		1.9 %		17,635		17,100		3.1 %
Furniture and equipment	3,617		3,341		8.3 %		10,951		10,020		9.3 %
Data processing	8,857		8,473		4.5 %		26,039		27,364		(4.8) %
Marketing	2,255		2,598		(13.2) %		6,822		7,560		(9.8) %
Communication	851		744		14.4 %		2,462		2,022		21.8 %
Professional services	2,303		2,524		(8.8) %		7,456		6,778		10.0 %
State intangible tax	876		981		(10.7) %		2,628		2,930		(10.3) %
FDIC assessments	3,036		2,665		13.9 %		8,473		8,297		2.1 %
Intangible amortization	2,395		2,600		(7.9) %		7,092		7,801		(9.1) %
Leasing business expense	11,899		8,877		34.0 %		31,781		23,545		35.0 %
Other	8,938		7,791		14.7 %		26,274		23,841		10.2 %
Total noninterest expenses	125,759		122,044		3.0 %		371,688		359,352		3.4 %
Income before income taxes	64,878		78,366		(17.2) %		201,410		247,205		(18.5) %
Income tax expense (benefit)	12,427		15,305		(18.8) %		37,465		48,074		(22.1) %
Net income	$       52,451		$       63,061		(16.8) %		$     163,945		$     199,131		(17.7) %
ADDITIONAL DATA
Net earnings per share - basic	$          0.56		$          0.67				$          1.74		$          2.12
Net earnings per share - diluted	$          0.55		$          0.66				$          1.72		$          2.09
Dividends declared per share	$          0.24		$          0.23				$          0.70		$          0.69
Return on average assets	1.17 %		1.48 %				1.24 %		1.57 %
Return on average shareholders' equity	8.80 %		11.62 %				9.50 %		12.53 %
Interest income	$     257,119		$     232,091		10.8 %		$     750,524		$     664,567		12.9 %
Tax equivalent adjustment	1,362		1,659		(17.9) %		4,315		4,684		(7.9) %
Interest income - tax equivalent	258,481		233,750		10.6 %		754,839		669,251		12.8 %
Interest expense	101,559		76,636		32.5 %		292,913		190,562		53.7 %
Net interest income - tax equivalent	$     156,922		$     157,114		(0.1) %		$     461,926		$     478,689		(3.5) %
Net interest margin	4.05 %		4.28 %				4.05 %		4.41 %
Net interest margin (fully tax equivalent) (1)	4.08 %		4.33 %				4.09 %		4.45 %
Full-time equivalent employees	2,084		2,121

(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
	Third		Second		First		Year to		% Change
	Quarter		Quarter		Quarter		Date		Linked Qtr.
Interest income
Loans and leases, including fees	$ 215,433		$ 211,760		$ 201,840		$ 629,033		1.7 %
Investment securities
Taxable	32,367		30,295		28,296		90,958		6.8 %
Tax-exempt	2,616		2,704		3,092		8,412		(3.3) %
Total investment securities interest	34,983		32,999		31,388		99,370		6.0 %
Other earning assets	6,703		7,960		7,458		22,121		(15.8) %
Total interest income	257,119		252,719		240,686		750,524		1.7 %
Interest expense
Deposits	86,554		83,022		76,075		245,651		4.3 %
Short-term borrowings	9,932		11,395		10,943		32,270		(12.8) %
Long-term borrowings	5,073		4,991		4,928		14,992		1.6 %
Total interest expense	101,559		99,408		91,946		292,913		2.2 %
Net interest income	155,560		153,311		148,740		457,611		1.5 %
Provision for credit losses-loans and leases	9,930		16,157		13,419		39,506		(38.5) %
Provision for credit losses-unfunded commitments	694		286		(2,259)		(1,279)		142.7 %
Net interest income after provision for credit losses	144,936		136,868		137,580		419,384		5.9 %
Noninterest income
Service charges on deposit accounts	7,547		7,188		6,912		21,647		5.0 %
Wealth management fees	6,910		7,172		6,676		20,758		(3.7) %
Bankcard income	3,698		3,900		3,142		10,740		(5.2) %
Client derivative fees	1,160		763		1,250		3,173		52.0 %
Foreign exchange income	12,048		16,787		10,435		39,270		(28.2) %
Leasing business income	16,811		16,828		14,589		48,228		(0.1) %
Net gains from sales of loans	5,021		4,479		3,784		13,284		12.1 %
Net gain (loss) on investment securities	(17,468)		(64)		(5,187)		(22,719)		N/M
Other	9,974		4,448		4,911		19,333		124.2 %
Total noninterest income	45,701		61,501		46,512		153,714		(25.7) %
Noninterest expenses
Salaries and employee benefits	74,813		75,225		74,037		224,075		(0.5) %
Net occupancy	5,919		5,793		5,923		17,635		2.2 %
Furniture and equipment	3,617		3,646		3,688		10,951		(0.8) %
Data processing	8,857		8,877		8,305		26,039		(0.2) %
Marketing	2,255		2,605		1,962		6,822		(13.4) %
Communication	851		816		795		2,462		4.3 %
Professional services	2,303		2,885		2,268		7,456		(20.2) %
State intangible tax	876		875		877		2,628		0.1 %
FDIC assessments	3,036		2,657		2,780		8,473		14.3 %
Intangible amortization	2,395		2,396		2,301		7,092		0.0 %
Leasing business expense	11,899		10,128		9,754		31,781		17.5 %
Other	8,938		7,671		9,665		26,274		16.5 %
Total noninterest expenses	125,759		123,574		122,355		371,688		1.8 %
Income before income taxes	64,878		74,795		61,737		201,410		(13.3) %
Income tax expense (benefit)	12,427		13,990		11,048		37,465		(11.2) %
Net income	$   52,451		$   60,805		$   50,689		$ 163,945		(13.7) %
ADDITIONAL DATA
Net earnings per share - basic	$      0.56		$      0.64		$      0.54		$      1.74
Net earnings per share - diluted	$      0.55		$      0.64		$      0.53		$      1.72
Dividends declared per share	$      0.24		$      0.23		$      0.23		$      0.70
Return on average assets	1.17 %		1.38 %		1.18 %		1.24 %
Return on average shareholders' equity	8.80 %		10.72 %		9.00 %		9.50 %
Interest income	$ 257,119		$ 252,719		$ 240,686		$ 750,524		1.7 %
Tax equivalent adjustment	1,362		1,418		1,535		4,315		(3.9) %
Interest income - tax equivalent	258,481		254,137		242,221		754,839		1.7 %
Interest expense	101,559		99,408		91,946		292,913		2.2 %
Net interest income - tax equivalent	$ 156,922		$ 154,729		$ 150,275		$ 461,926		1.4 %
Net interest margin	4.05 %		4.06 %		4.05 %		4.05 %
Net interest margin (fully tax equivalent) (1)	4.08 %		4.10 %		4.10 %		4.09 %
Full-time equivalent employees	2,084		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 investment securities	(649)		(58)		(466)		121		(1,052)
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)
	Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Sep. 30,		% Change		% Change
	2024		2024		2024		2023		2023		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$      190,618		$      193,794		$      199,407		$      213,059		$      220,335		(1.6) %		(13.5) %
Interest-bearing deposits with other banks	660,576		738,555		751,290		792,960		452,867		(10.6) %		45.9 %
Investment securities available-for-sale	3,157,265		3,036,758		2,850,667		3,021,126		3,044,361		4.0 %		3.7 %
Investment securities held-to-maturity	77,985		78,921		79,542		80,321		81,236		(1.2) %		(4.0) %
Other investments	120,318		132,412		125,548		129,945		133,725		(9.1) %		(10.0) %
Loans held for sale	12,685		16,911		11,534		9,213		12,391		(25.0) %		2.4 %
Loans and leases
Commercial and industrial	3,678,546		3,782,487		3,591,428		3,501,221		3,420,873		(2.7) %		7.5 %
Lease financing	587,415		534,557		492,862		474,817		399,973		9.9 %		46.9 %
Construction real estate	802,264		741,406		641,596		564,832		578,824		8.2 %		38.6 %
Commercial real estate	4,034,820		4,076,596		4,145,969		4,080,939		3,992,654		(1.0) %		1.1 %
Residential real estate	1,422,186		1,377,290		1,344,677		1,333,674		1,293,470		3.3 %		10.0 %
Home equity	825,431		800,860		773,811		758,676		743,991		3.1 %		10.9 %
Installment	141,270		148,530		153,838		159,078		160,648		(4.9) %		(12.1) %
Credit card	61,140		59,477		60,939		59,939		56,386		2.8 %		8.4 %
Total loans	11,553,072		11,521,203		11,205,120		10,933,176		10,646,819		0.3 %		8.5 %
Less:
Allowance for credit losses	(158,831)		(156,185)		(144,274)		(141,433)		(145,201)		1.7 %		9.4 %
Net loans	11,394,241		11,365,018		11,060,846		10,791,743		10,501,618		0.3 %		8.5 %
Premises and equipment	196,692		197,873		198,428		194,740		192,572		(0.6) %		2.1 %
Operating leases	201,080		167,472		161,473		153,214		136,883		20.1 %		46.9 %
Goodwill	1,007,656		1,007,656		1,007,656		1,005,868		1,005,868		0.0 %		0.2 %
Other intangibles	81,547		83,528		85,603		83,949		86,378		(2.4) %		(5.6) %
Accrued interest and other assets	1,045,669		1,147,282		1,067,244		1,056,762		1,186,618		(8.9) %		(11.9) %
Total Assets	$  18,146,332		$ 18,166,180		$  17,599,238		$ 17,532,900		$  17,054,852		(0.1) %		6.4 %
LIABILITIES
Deposits
Interest-bearing demand	$   2,884,971		$   2,922,540		$   2,916,518		$   2,993,219		$   2,880,617		(1.3) %		0.2 %
Savings	4,710,223		4,628,320		4,467,894		4,331,228		4,023,455		1.8 %		17.1 %
Time	3,244,861		3,049,635		2,896,860		2,718,390		2,572,909		6.4 %		26.1 %
Total interest-bearing deposits	10,840,055		10,600,495		10,281,272		10,042,837		9,476,981		2.3 %		14.4 %
Noninterest-bearing	3,107,699		3,061,427		3,175,876		3,317,960		3,438,572		1.5 %		(9.6) %
Total deposits	13,947,754		13,661,922		13,457,148		13,360,797		12,915,553		2.1 %		8.0 %
FHLB short-term borrowings	765,000		1,040,000		700,000		800,000		755,000		(26.4) %		1.3 %
Other	46,653		139,172		162,145		137,814		219,188		(66.5) %		(78.7) %
Total short-term borrowings	811,653		1,179,172		862,145		937,814		974,188		(31.2) %		(16.7) %
Long-term debt	344,086		338,556		343,236		344,115		340,902		1.6 %		0.9 %
Total borrowed funds	1,155,739		1,517,728		1,205,381		1,281,929		1,315,090		(23.9) %		(12.1) %
Accrued interest and other liabilities	592,401		660,091		649,706		622,200		694,700		(10.3) %		(14.7) %
Total Liabilities	15,695,894		15,839,741		15,312,235		15,264,926		14,925,343		(0.9) %		5.2 %
SHAREHOLDERS' EQUITY
Common stock	1,639,045		1,635,705		1,632,971		1,638,972		1,636,054		0.2 %		0.2 %
Retained earnings	1,234,375		1,204,844		1,166,065		1,136,718		1,101,905		2.5 %		12.0 %
Accumulated other comprehensive income (loss)	(232,262)		(323,409)		(321,109)		(309,819)		(410,005)		(28.2) %		(43.4) %
Treasury stock, at cost	(190,720)		(190,701)		(190,924)		(197,897)		(198,445)		0.0 %		(3.9) %
Total Shareholders' Equity	2,450,438		2,326,439		2,287,003		2,267,974		2,129,509		5.3 %		15.1 %
Total Liabilities and Shareholders' Equity	$  18,146,332		$ 18,166,180		$  17,599,238		$ 17,532,900		$  17,054,852		(0.1) %		6.4 %

 

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,
	2024		2024		2024		2023		2023		2024		2023
ASSETS
Cash and due from banks	$      179,321		$      174,435		$      204,119		$      214,678		$      211,670		$      185,934		$      217,281
Interest-bearing deposits with other banks	483,880		599,348		553,654		548,153		386,173		545,402		344,844
Investment securities	3,274,498		3,131,541		3,137,665		3,184,408		3,394,237		3,181,575		3,529,119
Loans held for sale	16,399		14,075		12,069		12,547		15,420		14,189		10,972
Loans and leases
Commercial and industrial	3,723,761		3,716,083		3,543,475		3,422,381		3,443,615		3,661,335		3,456,612
Lease financing	550,634		509,758		480,540		419,179		371,598		513,779		316,316
Construction real estate	763,779		683,780		603,974		540,314		547,884		684,136		534,165
Commercial real estate	4,059,939		4,146,764		4,101,238		4,060,733		4,024,798		4,102,491		4,030,950
Residential real estate	1,399,932		1,361,133		1,336,749		1,320,670		1,260,249		1,366,062		1,186,259
Home equity	811,265		790,384		765,410		750,925		735,251		789,101		729,949
Installment	143,102		151,753		157,663		160,242		164,092		150,811		180,571
Credit card	65,189		67,200		65,066		64,037		60,827		65,816		58,637
Total loans	11,517,601		11,426,855		11,054,115		10,738,481		10,608,314		11,333,531		10,493,459
Less:
Allowance for credit losses	(159,252)		(147,666)		(143,950)		(149,398)		(150,297)		(150,322)		(144,149)
Net loans	11,358,349		11,279,189		10,910,165		10,589,083		10,458,017		11,183,209		10,349,310
Premises and equipment	197,881		199,096		198,482		194,435		194,228		198,484		191,733
Operating leases	180,118		156,457		154,655		139,331		132,984		163,803		126,362
Goodwill	1,007,654		1,007,657		1,006,477		1,005,870		1,005,844		1,007,264		1,005,783
Other intangibles	82,619		84,577		84,109		85,101		87,427		83,764		89,945
Accrued interest and other assets	1,073,472		1,081,876		1,044,826		1,151,349		1,065,389		1,066,750		1,088,829
Total Assets	$  17,854,191		$ 17,728,251		$  17,306,221		$  17,124,955		$  16,951,389		$  17,630,374		$  16,954,178
LIABILITIES
Deposits
Interest-bearing demand	$   2,914,934		$   2,888,252		$   2,895,768		$   2,988,086		$   2,927,416		$   2,899,707		$   2,913,737
Savings	4,694,923		4,617,658		4,399,768		4,235,658		3,919,590		4,571,236		3,829,802
Time	3,080,408		2,980,158		2,813,880		2,611,075		2,446,854		2,958,595		2,325,244
Total interest-bearing deposits	10,690,265		10,486,068		10,109,416		9,834,819		9,293,860		10,429,538		9,068,783
Noninterest-bearing	3,106,239		3,144,198		3,169,750		3,368,024		3,493,305		3,139,939		3,702,189
Total deposits	13,796,504		13,630,266		13,279,166		13,202,843		12,787,165		13,569,477		12,770,972
Federal funds purchased and securities sold
under agreements to repurchase	10,807		750		4,204		3,586		10,788		5,274		19,626
FHLB short-term borrowings	626,490		669,111		646,187		554,826		878,199		647,187		943,678
Other	76,859		161,913		146,127		185,221		175,682		128,112		149,122
Total short-term borrowings	714,156		831,774		796,518		743,633		1,064,669		780,573		1,112,426
Long-term debt	339,581		339,472		342,496		340,321		338,402		340,513		341,162
Total borrowed funds	1,053,737		1,171,246		1,139,014		1,083,954		1,403,071		1,121,086		1,453,588
Accrued interest and other liabilities	632,825		645,699		622,479		693,676		607,552		633,664		604,831
Total Liabilities	15,483,066		15,447,211		15,040,659		14,980,473		14,797,788		15,324,227		14,829,391
SHAREHOLDERS' EQUITY
Common stock	1,637,045		1,634,183		1,637,835		1,637,197		1,634,102		1,636,357		1,632,912
Retained earnings	1,210,924		1,179,827		1,144,447		1,111,786		1,076,515		1,178,518		1,033,779
Accumulated other comprehensive loss	(285,978)		(341,941)		(319,601)		(406,265)		(358,769)		(315,731)		(342,898)
Treasury stock, at cost	(190,866)		(191,029)		(197,119)		(198,236)		(198,247)		(192,997)		(199,006)
Total Shareholders' Equity	2,371,125		2,281,040		2,265,562		2,144,482		2,153,601		2,306,147		2,124,787
Total Liabilities and Shareholders' Equity	$  17,854,191		$ 17,728,251		$  17,306,221		$  17,124,955		$  16,951,389		$  17,630,374		$  16,954,178

 

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages																		Year-to-Date Averages
		September 30, 2024						June 30, 2024						September 30, 2023						September 30, 2024				September 30, 2023
		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities		$  3,274,498		$  34,983		4.24 %		$  3,131,541		$  32,999		4.23 %		$  3,394,237		$  34,819		4.07 %		$  3,181,575		4.18 %		$  3,529,119		4.01 %
Interest-bearing deposits with other banks		483,880		6,703		5.50 %		599,348		7,960		5.33 %		386,173		5,011		5.15 %		545,402		5.42 %		344,844		4.84 %
Gross loans (1)		11,534,000		215,433		7.41 %		11,440,930		211,760		7.42 %		10,623,734		192,261		7.18 %		11,347,720		7.41 %		10,504,431		6.95 %
Total earning assets		15,292,378		257,119		6.67 %		15,171,819		252,719		6.68 %		14,404,144		232,091		6.39 %		15,074,697		6.66 %		14,378,394		6.18 %
Nonearning assets
Allowance for credit losses		(159,252)						(147,666)						(150,297)						(150,322)				(144,149)
Cash and due from banks		179,321						174,435						211,670						185,934				217,281
Accrued interest and other assets		2,541,744						2,529,663						2,485,872						2,520,065				2,502,652
Total assets		$ 17,854,191						$ 17,728,251						$ 16,951,389						$ 17,630,374				$ 16,954,178
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$  2,914,934		$  15,919		2.17 %		$  2,888,252		$  14,923		2.07 %		$  2,927,416		$  12,953		1.76 %		$  2,899,707		2.11 %		$  2,913,737		1.28 %
Savings		4,694,923		34,220		2.89 %		4,617,658		33,142		2.88 %		3,919,590		19,853		2.01 %		4,571,236		2.83 %		3,829,802		1.45 %
Time		3,080,408		36,415		4.69 %		2,980,158		34,957		4.70 %		2,446,854		24,263		3.93 %		2,958,595		4.66 %		2,325,244		3.64 %
Total interest-bearing deposits		10,690,265		86,554		3.21 %		10,486,068		83,022		3.18 %		9,293,860		57,069		2.44 %		10,429,538		3.15 %		9,068,783		1.96 %
Borrowed funds
Short-term borrowings		714,156		9,932		5.52 %		831,774		11,395		5.49 %		1,064,669		14,615		5.45 %		780,573		5.53 %		1,112,426		5.18 %
Long-term debt		339,581		5,073		5.93 %		339,472		4,991		5.90 %		338,402		4,952		5.81 %		340,513		5.89 %		341,162		5.74 %
Total borrowed funds		1,053,737		15,005		5.65 %		1,171,246		16,386		5.61 %		1,403,071		19,567		5.53 %		1,121,086		5.64 %		1,453,588		5.31 %
Total interest-bearing liabilities		11,744,002		101,559		3.43 %		11,657,314		99,408		3.42 %		10,696,931		76,636		2.84 %		11,550,624		3.39 %		10,522,371		2.42 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		3,106,239						3,144,198						3,493,305						3,139,939				3,702,189
Other liabilities		632,825						645,699						607,552						633,664				604,831
Shareholders' equity		2,371,125						2,281,040						2,153,601						2,306,147				2,124,787
Total liabilities & shareholders' equity		$ 17,854,191						$ 17,728,251						$ 16,951,389						$ 17,630,374				$ 16,954,178
Net interest income		$     155,560						$     153,311						$     155,455						$     457,611				$     474,005
Net interest spread						3.24 %						3.26 %						3.55 %				3.27 %				3.76 %
Net interest margin						4.05 %						4.06 %						4.28 %				4.05 %				4.41 %
Tax equivalent adjustment						0.03 %						0.04 %						0.05 %				0.04 %				0.04 %
Net interest margin (fully tax equivalent)						4.08 %						4.10 %						4.33 %				4.09 %				4.45 %
(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		$          93		$     1,891		$     1,984		$     1,443		$    (1,279)		$        164		$     4,500		$  (10,855)		$    (6,355)
Interest-bearing deposits with other banks		252		(1,509)		(1,257)		339		1,353		1,692		1,499		8,134		9,633
Gross loans (2)		(388)		4,061		3,673		6,170		17,002		23,172		35,933		46,746		82,679
Total earning assets		(43)		4,443		4,400		7,952		17,076		25,028		41,932		44,025		85,957
Interest-bearing liabilities
Total interest-bearing deposits		$        956		$     2,576		$     3,532		$    18,179		$    11,306		$    29,485		$    80,784		$    32,050		$  112,834
Borrowed funds
Short-term borrowings		47		(1,510)		(1,463)		192		(4,875)		(4,683)		2,888		(13,719)		(10,831)
Long-term debt		25		57		82		103		18		121		377		(29)		348
Total borrowed funds		72		(1,453)		(1,381)		295		(4,857)		(4,562)		3,265		(13,748)		(10,483)
Total interest-bearing liabilities		1,028		1,123		2,151		18,474		6,449		24,923		84,049		18,302		102,351
Net interest income (1)		$    (1,071)		$     3,320		$     2,249		$  (10,522)		$    10,627		$        105		$  (42,117)		$    25,723		$  (16,394)
(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,
	2024		2024		2024		2023		2023		2024		2023
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$  156,185		$  144,274		$  141,433		$  145,201		$  148,646		$ 141,433		$ 132,977
Provision for credit losses	9,930		16,157		13,419		8,804		12,907		39,506		34,270
Gross charge-offs
Commercial and industrial	5,471		2,149		2,695		6,866		9,207		10,315		12,309
Lease financing	368		190		3		4,244		76		561		179
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	261		2		5,319		1		6,008		5,582		8,722
Residential real estate	60		6		65		9		10		131		30
Home equity	90		122		25		174		54		237		166
Installment	1,510		2,034		2,236		2,054		1,349		5,780		4,388
Credit card	768		532		794		363		319		2,094		810
Total gross charge-offs	8,528		5,035		11,137		13,711		17,023		24,700		26,604
Recoveries
Commercial and industrial	434		236		162		459		335		832		1,075
Lease financing	11		1		59		52		1		71		3
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	25		137		38		93		39		200		2,430
Residential real estate	22		37		24		24		44		83		223
Home equity	240		118		80		178		125		438		437
Installment	421		219		145		210		87		785		231
Credit card	91		41		51		123		40		183		159
Total recoveries	1,244		789		559		1,139		671		2,592		4,558
Total net charge-offs	7,284		4,246		10,578		12,572		16,352		22,108		22,046
Ending allowance for credit losses	$  158,831		$  156,185		$  144,274		$  141,433		$  145,201		$ 158,831		$ 145,201
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.54 %		0.21 %		0.29 %		0.74 %		1.02 %		0.35 %		0.43 %
Lease financing	0.26 %		0.15 %		(0.05) %		3.97 %		0.08 %		0.13 %		0.07 %
Construction real estate	0.00 %		0.00 %		0.00 %		0.00 %		0.00 %		0.00 %		0.00 %
Commercial real estate	0.02 %		(0.01) %		0.52 %		(0.01) %		0.59 %		0.18 %		0.21 %
Residential real estate	0.01 %		(0.01) %		0.01 %		0.00 %		(0.01) %		0.00 %		(0.02) %
Home equity	(0.07) %		0.00 %		(0.03) %		0.00 %		(0.04) %		(0.03) %		(0.05) %
Installment	3.03 %		4.81 %		5.33 %		4.57 %		3.05 %		4.42 %		3.08 %
Credit card	4.13 %		2.94 %		4.59 %		1.49 %		1.82 %		3.88 %		1.48 %
Total net charge-offs	0.25 %		0.15 %		0.38 %		0.46 %		0.61 %		0.26 %		0.28 %
COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans
Commercial and industrial	$    10,703		$    17,665		$    14,532		$    15,746		$    17,152		$   10,703		$   17,152
Lease financing	11,632		5,374		3,794		3,610		7,731		11,632		7,731
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	23,608		22,942		23,055		27,984		33,019		23,608		33,019
Residential real estate	14,596		12,715		12,836		14,067		12,328		14,596		12,328
Home equity	4,074		3,295		4,036		3,476		3,937		4,074		3,937
Installment	826		682		984		870		774		826		774
Total nonaccrual loans	65,439		62,673		59,237		65,753		74,941		65,439		74,941
Other real estate owned (OREO)	30		30		161		106		142		30		142
Total nonperforming assets	65,469		62,703		59,398		65,859		75,083		65,469		75,083
Accruing loans past due 90 days or more	463		1,573		820		2,028		698		463		698
Total underperforming assets	$    65,932		$    64,276		$    60,218		$    67,887		$    75,781		$   65,932		$   75,781
Total classified assets	$  206,194		$  195,277		$  162,348		$  140,995		$  140,552		$ 206,194		$ 140,552
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	242.72 %		249.21 %		243.55 %		215.10 %		193.75 %		242.72 %		193.75 %
Total ending loans	1.37 %		1.36 %		1.29 %		1.29 %		1.36 %		1.37 %		1.36 %
Nonaccrual loans to total loans	0.57 %		0.54 %		0.53 %		0.60 %		0.70 %		0.57 %		0.70 %
Nonperforming assets to
Ending loans, plus OREO	0.57 %		0.54 %		0.53 %		0.60 %		0.71 %		0.57 %		0.71 %
Total assets	0.36 %		0.35 %		0.34 %		0.38 %		0.44 %		0.36 %		0.44 %
Classified assets to total assets	1.14 %		1.07 %		0.92 %		0.80 %		0.82 %		1.14 %		0.82 %

 

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,										Nine months ended,
	Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2024		2024		2024		2023		2023		2024		2023
PER COMMON SHARE
Market Price
High	$        28.09		$        23.78		$        23.68		$        24.28		$        24.02		$        28.09		$        26.24
Low	$        21.70		$        20.79		$        21.04		$        17.37		$        19.19		$        20.79		$        18.20
Close	$        25.23		$        22.22		$        22.42		$        23.75		$        19.60		$        25.23		$        19.60
Average shares outstanding - basic	94,473,666		94,438,235		94,218,067		94,063,570		94,030,275		94,377,010		93,896,716
Average shares outstanding - diluted	95,479,510		95,470,093		95,183,998		95,126,316		95,126,269		95,378,238		95,085,871
Ending shares outstanding	95,486,317		95,486,010		95,473,595		95,141,244		95,117,180		95,486,317		95,117,180
Total shareholders' equity	$  2,450,438		$  2,326,439		$  2,287,003		$  2,267,974		$  2,129,509		$  2,450,438		$  2,129,509
REGULATORY CAPITAL	Preliminary										Preliminary
Common equity tier 1 capital	$  1,661,759		$  1,626,345		$  1,582,113		$  1,568,815		$  1,527,793		$  1,661,759		$  1,527,793
Common equity tier 1 capital ratio	12.04 %		11.78 %		11.67 %		11.73 %		11.60 %		12.04 %		11.60 %
Tier 1 capital	$  1,706,796		$  1,671,258		$  1,626,899		$  1,613,480		$  1,572,248		$  1,706,796		$  1,572,248
Tier 1 ratio	12.37 %		12.11 %		12.00 %		12.06 %		11.94 %		12.37 %		11.94 %
Total capital	$  2,012,349		$  1,997,378		$  1,940,762		$  1,907,441		$  1,868,490		$  2,012,349		$  1,868,490
Total capital ratio	14.58 %		14.47 %		14.31 %		14.26 %		14.19 %		14.58 %		14.19 %
Total capital in excess of minimum requirement	$     563,592		$     548,037		$     516,704		$      503,152		$      485,580		$    563,592		$     485,580
Total risk-weighted assets	$  13,797,681		$  13,803,249		$  13,562,455		$  13,374,177		$  13,170,574		$  13,797,681		$  13,170,574
Leverage ratio	9.93 %		9.73 %		9.75 %		9.70 %		9.59 %		9.93 %		9.59 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	13.50 %		12.81 %		12.99 %		12.94 %		12.49 %		13.50 %		12.49 %
Ending tangible shareholders' equity to ending tangible assets (1)	7.98 %		7.23 %		7.23 %		7.17 %		6.50 %		7.98 %		6.50 %
Average shareholders' equity to average assets	13.28 %		12.87 %		13.09 %		12.52 %		12.70 %		13.08 %		12.53 %
Average tangible shareholders' equity to average tangible assets (1)	7.64 %		7.15 %		7.25 %		6.57 %		6.69 %		7.35 %		6.49 %
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 Q3 2024?

First Financial Bancorp reported earnings of $0.55 per diluted share in Q3 2024, or $0.67 on an adjusted basis.

What is FFBC's quarterly dividend for Q3 2024?

First Financial Bancorp declared a quarterly dividend of $0.24 per share, payable on December 16, 2024.

What was First Financial's (FFBC) net interest margin in Q3 2024?

The net interest margin was 4.08% on a fully tax-equivalent basis, showing a 2 basis point decline from the second quarter.

How much did FFBC's deposits grow in Q3 2024?

Average deposits increased by $166.2 million, representing a 4.9% growth on an annualized basis.