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

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

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

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

Second quarter 2024 highlights include:

  • Net interest margin of 4.06%, or 4.10% on a fully tax-equivalent basis(1)
    • Unchanged from first quarter, exceeding expectations
    • 14 bp increase in earning asset yields driven by 10 bp increase in loan yields and 22 bp increase in yield on the investment securities portfolio
    • Cost of deposits increased 14 bp during second quarter; pace of increase moderated compared to 22 bp increase in first quarter
  • Record noninterest income of $61.5 million, or $61.6 million as adjusted(1)
    • Foreign exchange income increased $6.4 million, or 60.9% from first quarter
    • Strong leasing business income of $16.8 million; 15.3% increase from first quarter
    • Record wealth management income; 7.4% increase from linked quarter
    • Double digit percentage growth from linked quarter in mortgage banking and bankcard income
  • Noninterest expenses of $123.6 million, or $122.5 million as adjusted(1); 1.2% increase from linked quarter
    • Increase driven by variable compensation tied to fee income
    • Second quarter adjustments(1) include $0.4 million of efficiency related costs and $0.8 million of other costs such as acquisition, severance and branch consolidation costs
    • Efficiency ratio of 57.5%; 57.0% as adjusted(1)
  • Solid loan growth during the quarter
    • Loan balances increased $316.1 million compared to the linked quarter; 11.3% annualized growth
    • Broad-based growth driven by C&I, Agile and Summit

_________________________________________________________________________________________

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

  • Strong average deposit growth during the quarter
    • Average deposits increased $351.1 million, or 10.6% on an annualized basis
    • Second quarter included approximately $100 million of seasonal public fund increases
    • Growth in money market accounts, retail CDs and brokered CDs offset modest declines in noninterest bearing checking and savings balances
  • Total Allowance for Credit Losses of $172.6 million; Total quarterly provision expense of $16.4 million
    • Loans and leases - ACL of $156.2 million; ratio to total loans of 1.36% increased 7 bps from first quarter
    • Unfunded Commitments - ACL of $16.4 million
    • Provision expense driven by loan growth and downward credit migration; Classified assets 1.07% of total assets
    • Annualized net charge-offs were 15 bps of total loans; 23 bps decline from linked quarter
  • Capital ratios stable and strong 
    • Total capital ratio increased 16 bps to 14.47%
    • Tier 1 common equity increased 11 bps to 11.78%
    • Tangible common equity of 7.23%(1); 9.13%(1) excluding impact from AOCI
    • Tangible book value per share of $12.94(1); 3.5% increase from linked quarter

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

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

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

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

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

Full detail of the Company's second quarter 2024 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, July 26, 2024 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068.  The number should be dialed five to ten minutes prior to the start of the conference call.  A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 (U.S. toll free), (609) 800-9099 (U.S. toll), access code 5048068.  The recording will be available until August 9, 2024.  The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com.  The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

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

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

Forward-Looking Statements

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

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

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

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2023, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov. 

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

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  As of June 30, 2024, the Company had $18.2 billion in assets, $11.5 billion in loans, $13.7 billion in deposits and $2.3 billion in shareholders' equity.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.6 billion in assets under management as of June 30, 2024.  The Company operated 131 full service banking centers as of June 30, 2024, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis.  Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

(Unaudited)
















Three Months Ended,


Six months ended,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


2024


2024


2023


2023


2023


2024


2023

RESULTS OF OPERATIONS














Net income

$        60,805


$        50,689


$        56,732


$        63,061


$        65,667


$       111,494


$      136,070

Net earnings per share - basic

$            0.64


$            0.54


$            0.60


$            0.67


$            0.70


$            1.18


$            1.45

Net earnings per share - diluted

$            0.64


$            0.53


$            0.60


$            0.66


$            0.69


$            1.17


$            1.43

Dividends declared per share

$            0.23


$            0.23


$            0.23


$            0.23


$            0.23


$            0.46


$            0.46















KEY FINANCIAL RATIOS














Return on average assets

1.38 %


1.18 %


1.31 %


1.48 %


1.55 %


1.28 %


1.62 %

Return on average shareholders' equity

10.72 %


9.00 %


10.50 %


11.62 %


12.32 %


9.86 %


13.00 %

Return on average tangible shareholders' equity (1)

20.57 %


17.35 %


21.36 %


23.60 %


25.27 %


18.97 %


27.08 %















Net interest margin

4.06 %


4.05 %


4.21 %


4.28 %


4.43 %


4.06 %


4.47 %

Net interest margin (fully tax equivalent) (1)(2)

4.10 %


4.10 %


4.26 %


4.33 %


4.48 %


4.10 %


4.51 %















Ending shareholders' equity as a percent of ending assets

12.81 %


12.99 %


12.94 %


12.49 %


12.54 %


12.81 %


12.54 %

Ending tangible shareholders' equity as a percent of:














Ending tangible assets (1)

7.23 %


7.23 %


7.17 %


6.50 %


6.56 %


7.23 %


6.56 %

Risk-weighted assets (1)

8.95 %


8.80 %


8.81 %


7.88 %


8.03 %


8.95 %


8.03 %















Average shareholders' equity as a percent of average assets

12.87 %


13.09 %


12.52 %


12.70 %


12.60 %


12.98 %


12.45 %

Average tangible shareholders' equity as a percent of average tangible assets (1)

7.15 %


7.25 %


6.57 %


6.69 %


6.57 %


7.20 %


6.39 %















Book value per share

$           24.36


$           23.95


$           23.84


$           22.39


$           22.52


$           24.36


$           22.52

Tangible book value per share (1)

$           12.94


$           12.50


$           12.38


$           10.91


$           11.02


$           12.94


$           11.02















Common equity tier 1 ratio (3)

11.78 %


11.67 %


11.73 %


11.60 %


11.34 %


11.78 %


11.34 %

Tier 1 ratio (3)

12.11 %


12.00 %


12.06 %


11.94 %


11.68 %


12.11 %


11.68 %

Total capital ratio (3)

14.47 %


14.31 %


14.26 %


14.19 %


14.16 %


14.47 %


14.16 %

Leverage ratio (3)

9.73 %


9.75 %


9.70 %


9.59 %


9.33 %


9.73 %


9.33 %















AVERAGE BALANCE SHEET ITEMS














Loans (4)

$  11,440,930


$  11,066,184


$  10,751,028


$  10,623,734


$  10,513,505


$  11,253,557


$  10,443,791

Investment securities

3,131,541


3,137,665


3,184,408


3,394,237


3,560,453


3,134,603


3,597,678

Interest-bearing deposits with other banks

599,348


553,654


548,153


386,173


329,584


576,501


323,837

  Total earning assets

$  15,171,819


$  14,757,503


$  14,483,589


$  14,404,144


$  14,403,542


$  14,964,661


$  14,365,306

Total assets

$  17,728,251


$  17,306,221


$  17,124,955


$  16,951,389


$  16,968,055


$  17,517,236


$  16,955,596

Noninterest-bearing deposits

$    3,144,198


$    3,169,750


$    3,368,024


$    3,493,305


$    3,663,419


$    3,156,974


$    3,808,362

Interest-bearing deposits

10,486,068


10,109,416


9,834,819


9,293,860


9,050,464


10,297,742


8,954,379

  Total deposits

$  13,630,266


$  13,279,166


$  13,202,843


$  12,787,165


$  12,713,883


$  13,454,716


$  12,762,741

Borrowings

$    1,171,246


$    1,139,014


$    1,083,954


$    1,403,071


$    1,523,699


$    1,155,130


$    1,479,265

Shareholders' equity

$    2,281,040


$    2,265,562


$    2,144,482


$    2,153,601


$    2,137,765


$    2,273,301


$    2,110,141















CREDIT QUALITY RATIOS













Allowance to ending loans

1.36 %


1.29 %


1.29 %


1.36 %


1.41 %


1.36 %


1.41 %

Allowance to nonaccrual loans

249.21 %


243.55 %


215.10 %


193.75 %


276.70 %


249.21 %


276.70 %

Nonaccrual loans to total loans

0.54 %


0.53 %


0.60 %


0.70 %


0.51 %


0.54 %


0.51 %

Nonperforming assets to ending loans, plus OREO

0.54 %


0.53 %


0.60 %


0.71 %


0.51 %


0.54 %


0.51 %

Nonperforming assets to total assets

0.35 %


0.34 %


0.38 %


0.44 %


0.32 %


0.35 %


0.32 %

Classified assets to total assets

1.07 %


0.92 %


0.80 %


0.82 %


0.81 %


1.07 %


0.81 %

Net charge-offs to average loans (annualized)

0.15 %


0.38 %


0.46 %


0.61 %


0.22 %


0.27 %


0.11 %


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

(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

(3) June 30, 2024 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)






Three months ended,


Six months ended,


June 30,


June 30,


2024


2023


% Change


2024


2023


% Change

Interest income












  Loans and leases, including fees

$     211,760


$     184,387


14.8 %


$     413,600


$     354,093


16.8 %

  Investment securities












     Taxable

30,295


32,062


(5.5) %


58,591


63,929


(8.3) %

     Tax-exempt

2,704


3,513


(23.0) %


5,796


6,977


(16.9) %

        Total investment securities interest

32,999


35,575


(7.2) %


64,387


70,906


(9.2) %

  Other earning assets

7,960


3,933


102.4 %


15,418


7,477


106.2 %

       Total interest income

252,719


223,895


12.9 %


493,405


432,476


14.1 %













Interest expense












  Deposits

83,022


44,292


87.4 %


159,097


75,748


110.0 %

  Short-term borrowings

11,395


15,536


(26.7) %


22,338


28,486


(21.6) %

  Long-term borrowings

4,991


4,835


3.2 %


9,919


9,692


2.3 %

      Total interest expense

99,408


64,663


53.7 %


191,354


113,926


68.0 %

      Net interest income

153,311


159,232


(3.7) %


302,051


318,550


(5.2) %

  Provision for credit losses-loans and leases

16,157


12,719


27.0 %


29,576


21,363


38.4 %

  Provision for credit losses-unfunded commitments

286


(1,994)


(114.3) %


(1,973)


(159)


1,140.9 %

      Net interest income after provision for credit losses

136,868


148,507


(7.8) %


274,448


297,346


(7.7) %













Noninterest income












  Service charges on deposit accounts

7,188


6,972


3.1 %


14,100


13,486


4.6 %

  Wealth management fees

7,172


6,713


6.8 %


13,848


13,047


6.1 %

  Bankcard income

3,900


3,692


5.6 %


7,042


7,284


(3.3) %

  Client derivative fees

763


1,827


(58.2) %


2,013


2,832


(28.9) %

  Foreign exchange income

16,787


15,039


11.6 %


27,222


31,937


(14.8) %

  Leasing business income

16,828


10,265


63.9 %


31,417


23,929


31.3 %

  Net gains from sales of loans

4,479


3,839


16.7 %


8,263


6,174


33.8 %

  Net gain (loss) on sale of investment securities

0


(384)


(100.0) %


(5,277)


(403)


1,209.4 %

  Net gain (loss) on equity  securities

(64)


(82)


(22.0) %


26


58


(55.2) %

  Other

4,448


5,377


(17.3) %


9,359


10,457


(10.5) %

      Total noninterest income

61,501


53,258


15.5 %


108,013


108,801


(0.7) %













Noninterest expenses












  Salaries and employee benefits

75,225


74,199


1.4 %


149,262


146,453


1.9 %

  Net occupancy

5,793


5,606


3.3 %


11,716


11,291


3.8 %

  Furniture and equipment

3,646


3,362


8.4 %


7,334


6,679


9.8 %

  Data processing

8,877


9,871


(10.1) %


17,182


18,891


(9.0) %

  Marketing

2,605


2,802


(7.0) %


4,567


4,962


(8.0) %

  Communication

816


644


26.7 %


1,611


1,278


26.1 %

  Professional services

2,885


2,308


25.0 %


5,153


4,254


21.1 %

  State intangible tax

875


964


(9.2) %


1,752


1,949


(10.1) %

  FDIC assessments

2,657


2,806


(5.3) %


5,437


5,632


(3.5) %

  Intangible amortization

2,396


2,601


(7.9) %


4,697


5,201


(9.7) %

  Leasing business expense

10,128


6,730


50.5 %


19,882


14,668


35.5 %

  Other

7,671


8,722


(12.0) %


17,336


16,050


8.0 %

      Total noninterest expenses

123,574


120,615


2.5 %


245,929


237,308


3.6 %

Income before income taxes

74,795


81,150


(7.8) %


136,532


168,839


(19.1) %

Income tax expense (benefit)

13,990


15,483


(9.6) %


25,038


32,769


(23.6) %

      Net income

$       60,805


$       65,667


(7.4) %


$     111,494


$     136,070


(18.1) %













ADDITIONAL DATA












Net earnings per share - basic

$          0.64


$          0.70




$          1.18


$          1.45



Net earnings per share - diluted

$          0.64


$          0.69




$          1.17


$          1.43



Dividends declared per share

$          0.23


$          0.23




$          0.46


$          0.46















Return on average assets

1.38 %


1.55 %




1.28 %


1.62 %



Return on average shareholders' equity

10.72 %


12.32 %




9.86 %


13.00 %















Interest income

$     252,719


$     223,895


12.9 %


$     493,405


$     432,476


14.1 %

Tax equivalent adjustment

1,418


1,601


(11.4) %


2,953


3,025


(2.4) %

   Interest income - tax equivalent

254,137


225,496


12.7 %


496,358


435,501


14.0 %

Interest expense

99,408


64,663


53.7 %


191,354


113,926


68.0 %

   Net interest income - tax equivalent

$     154,729


$     160,833


(3.8) %


$     305,004


$     321,575


(5.2) %













Net interest margin

4.06 %


4.43 %




4.06 %


4.47 %



Net interest margin (fully tax equivalent) (1)

4.10 %


4.48 %




4.10 %


4.51 %















Full-time equivalent employees

2,144


2,193





















(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)










2024


Second


First


Year to


% Change


Quarter


Quarter


Date


Linked Qtr.

Interest income








  Loans and leases, including fees

$ 211,760


$ 201,840


$ 413,600


4.9 %

  Investment securities








     Taxable

30,295


28,296


58,591


7.1 %

     Tax-exempt

2,704


3,092


5,796


(12.5) %

        Total investment securities interest

32,999


31,388


64,387


5.1 %

  Other earning assets

7,960


7,458


15,418


6.7 %

       Total interest income

252,719


240,686


493,405


5.0 %









Interest expense








  Deposits

83,022


76,075


159,097


9.1 %

  Short-term borrowings

11,395


10,943


22,338


4.1 %

  Long-term borrowings

4,991


4,928


9,919


1.3 %

      Total interest expense

99,408


91,946


191,354


8.1 %

      Net interest income

153,311


148,740


302,051


3.1 %

  Provision for credit losses-loans and leases

16,157


13,419


29,576


20.4 %

  Provision for credit losses-unfunded commitments

286


(2,259)


(1,973)


(112.7) %

      Net interest income after provision for credit losses

136,868


137,580


274,448


(0.5) %









Noninterest income








  Service charges on deposit accounts

7,188


6,912


14,100


4.0 %

  Wealth management fees

7,172


6,676


13,848


7.4 %

  Bankcard income

3,900


3,142


7,042


24.1 %

  Client derivative fees

763


1,250


2,013


(39.0) %

  Foreign exchange income

16,787


10,435


27,222


60.9 %

  Leasing business income

16,828


14,589


31,417


15.3 %

  Net gains from sales of loans

4,479


3,784


8,263


18.4 %

  Net gain (loss) on sale of investment securities

0


(5,277)


(5,277)


(100.0) %

  Net gain (loss) on equity securities

(64)


90


26


171.1 %

  Other

4,448


4,911


9,359


(9.4) %

      Total noninterest income

61,501


46,512


108,013


32.2 %









Noninterest expenses








  Salaries and employee benefits

75,225


74,037


149,262


1.6 %

  Net occupancy

5,793


5,923


11,716


(2.2) %

  Furniture and equipment

3,646


3,688


7,334


(1.1) %

  Data processing

8,877


8,305


17,182


6.9 %

  Marketing

2,605


1,962


4,567


32.8 %

  Communication

816


795


1,611


2.6 %

  Professional services

2,885


2,268


5,153


27.2 %

  State intangible tax

875


877


1,752


(0.2) %

  FDIC assessments

2,657


2,780


5,437


(4.4) %

  Intangible amortization

2,396


2,301


4,697


4.1 %

  Leasing business expense

10,128


9,754


19,882


3.8 %

  Other

7,671


9,665


17,336


(20.6) %

      Total noninterest expenses

123,574


122,355


245,929


1.0 %

Income before income taxes

74,795


61,737


136,532


21.2 %

Income tax expense (benefit)

13,990


11,048


25,038


26.6 %

      Net income

$   60,805


$   50,689


$ 111,494


20.0 %









ADDITIONAL DATA








Net earnings per share - basic

$      0.64


$      0.54


$      1.18



Net earnings per share - diluted

$      0.64


$      0.53


$      1.17



Dividends declared per share

$      0.23


$      0.23


$      0.46











Return on average assets

1.38 %


1.18 %


1.28 %



Return on average shareholders' equity

10.72 %


9.00 %


9.86 %











Interest income

$ 252,719


$ 240,686


$ 493,405


5.0 %

Tax equivalent adjustment

1,418


1,535


2,953


(7.6) %

   Interest income - tax equivalent

254,137


242,221


496,358


4.9 %

Interest expense

99,408


91,946


191,354


8.1 %

   Net interest income - tax equivalent

$ 154,729


$ 150,275


$ 305,004


3.0 %









Net interest margin

4.06 %


4.05 %


4.06 %



Net interest margin (fully tax equivalent) (1)

4.10 %


4.10 %


4.10 %











Full-time equivalent employees

2,144


2,116













(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)












2023


Fourth


Third


Second


First


Full


Quarter


Quarter


Quarter


Quarter


Year

Interest income










  Loans and leases, including fees

$ 197,416


$  192,261


$  184,387


$  169,706


$  743,770

  Investment securities










     Taxable

30,294


31,297


32,062


31,867


125,520

     Tax-exempt

3,402


3,522


3,513


3,464


13,901

        Total investment securities interest

33,696


34,819


35,575


35,331


139,421

  Other earning assets

7,325


5,011


3,933


3,544


19,813

       Total interest income

238,437


232,091


223,895


208,581


903,004











Interest expense










  Deposits

69,193


57,069


44,292


31,456


202,010

  Short-term borrowings

10,277


14,615


15,536


12,950


53,378

  Long-term borrowings

5,202


4,952


4,835


4,857


19,846

      Total interest expense

84,672


76,636


64,663


49,263


275,234

      Net interest income

153,765


155,455


159,232


159,318


627,770

  Provision for credit losses-loans and leases

8,804


12,907


12,719


8,644


43,074

  Provision for credit losses-unfunded commitments

1,426


(1,234)


(1,994)


1,835


33

      Net interest income after provision for credit losses

143,535


143,782


148,507


148,839


584,663











Noninterest income










  Service charges on deposit accounts

6,846


6,957


6,972


6,514


27,289

  Wealth management fees

6,091


6,943


6,713


6,334


26,081

  Bankcard income

3,349


3,406


3,692


3,592


14,039

  Client derivative fees

711


1,612


1,827


1,005


5,155

  Foreign exchange income

8,730


13,384


15,039


16,898


54,051

  Leasing business income

12,856


14,537


10,265


13,664


51,322

  Net gains from sales of loans

2,957


4,086


3,839


2,335


13,217

  Net gain (loss) on sale of investment securities

(851)


(4)


(384)


(19)


(1,258)

  Net  gain (loss) on equity securities

202


(54)


(82)


140


206

  Other

6,102


5,761


5,377


5,080


22,320

      Total noninterest income

46,993


56,628


53,258


55,543


212,422











Noninterest expenses










  Salaries and employee benefits

70,637


75,641


74,199


72,254


292,731

  Net occupancy

5,890


5,809


5,606


5,685


22,990

  Furniture and equipment

3,523


3,341


3,362


3,317


13,543

  Data processing

8,488


8,473


9,871


9,020


35,852

  Marketing

2,087


2,598


2,802


2,160


9,647

  Communication

707


744


644


634


2,729

  Professional services

3,148


2,524


2,308


1,946


9,926

  State intangible tax

984


981


964


985


3,914

  FDIC assessments

3,651


2,665


2,806


2,826


11,948

  Intangible amortization

2,601


2,600


2,601


2,600


10,402

  Leasing business expense

8,955


8,877


6,730


7,938


32,500

  Other

8,466


7,791


8,722


7,328


32,307

      Total noninterest expenses

119,137


122,044


120,615


116,693


478,489

Income before income taxes

71,391


78,366


81,150


87,689


318,596

Income tax expense (benefit)

14,659


15,305


15,483


17,286


62,733

      Net income

$   56,732


$   63,061


$   65,667


$   70,403


$  255,863











ADDITIONAL DATA










Net earnings per share - basic

$      0.60


$      0.67


$      0.70


$      0.75


$       2.72

Net earnings per share - diluted

$      0.60


$      0.66


$      0.69


$      0.74


$       2.69

Dividends declared per share

$      0.23


$      0.23


$      0.23


$      0.23


$       0.92











Return on average assets

1.31 %


1.48 %


1.55 %


1.69 %


1.51 %

Return on average shareholders' equity

10.50 %


11.62 %


12.32 %


13.71 %


12.01 %











Interest income

$ 238,437


$  232,091


$  223,895


$  208,581


$  903,004

Tax equivalent adjustment

1,672


1,659


1,601


1,424


6,356

   Interest income - tax equivalent

240,109


233,750


225,496


210,005


909,360

Interest expense

84,672


76,636


64,663


49,263


275,234

   Net interest income - tax equivalent

$ 155,437


$  157,114


$  160,833


$  160,742


$  634,126











Net interest margin

4.21 %


4.28 %


4.43 %


4.51 %


4.36 %

Net interest margin (fully tax equivalent) (1)

4.26 %


4.33 %


4.48 %


4.55 %


4.40 %











Full-time equivalent employees

2,129


2,121


2,193


2,066













(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)
















June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


% Change


% Change


2024


2024


2023


2023


2023


Linked Qtr.


Comp Qtr.

ASSETS














     Cash and due from banks

$      193,794


$      199,407


$      213,059


$      220,335


$      217,385


(2.8) %


(10.9) %

     Interest-bearing deposits with other banks

738,555


751,290


792,960


452,867


485,241


(1.7) %


52.2 %

     Investment securities available-for-sale

3,036,758


2,850,667


3,021,126


3,044,361


3,249,404


6.5 %


(6.5) %

     Investment securities held-to-maturity

78,921


79,542


80,321


81,236


82,372


(0.8) %


(4.2) %

     Other investments

132,412


125,548


129,945


133,725


141,892


5.5 %


(6.7) %

     Loans held for sale

16,911


11,534


9,213


12,391


15,267


46.6 %


10.8 %

     Loans and leases














       Commercial and industrial

3,782,487


3,591,428


3,501,221


3,420,873


3,433,162


5.3 %


10.2 %

       Lease financing

534,557


492,862


474,817


399,973


360,801


8.5 %


48.2 %

       Construction real estate

741,406


641,596


564,832


578,824


536,464


15.6 %


38.2 %

       Commercial real estate

4,076,596


4,145,969


4,080,939


3,992,654


4,048,460


(1.7) %


0.7 %

       Residential real estate

1,377,290


1,344,677


1,333,674


1,293,470


1,221,484


2.4 %


12.8 %

       Home equity

800,860


773,811


758,676


743,991


728,711


3.5 %


9.9 %

       Installment

148,530


153,838


159,078


160,648


165,216


(3.5) %


(10.1) %

       Credit card

59,477


60,939


59,939


56,386


55,911


(2.4) %


6.4 %

          Total loans

11,521,203


11,205,120


10,933,176


10,646,819


10,550,209


2.8 %


9.2 %

       Less:














          Allowance for credit losses

(156,185)


(144,274)


(141,433)


(145,201)


(148,646)


8.3 %


5.1 %

                Net loans

11,365,018


11,060,846


10,791,743


10,501,618


10,401,563


2.7 %


9.3 %

     Premises and equipment

197,873


198,428


194,740


192,572


192,077


(0.3) %


3.0 %

     Operating leases

167,472


161,473


153,214


136,883


132,272


3.7 %


26.6 %

     Goodwill

1,007,656


1,007,656


1,005,868


1,005,868


1,005,828


0.0 %


0.2 %

     Other intangibles

83,528


85,603


83,949


86,378


88,662


(2.4) %


(5.8) %

     Accrued interest and other assets

1,147,282


1,067,244


1,056,762


1,186,618


1,078,186


7.5 %


6.4 %

       Total Assets

$  18,166,180


$ 17,599,238


$  17,532,900


$ 17,054,852


$  17,090,149


3.2 %


6.3 %















LIABILITIES














     Deposits














       Interest-bearing demand

$   2,922,540


$   2,916,518


$   2,993,219


$   2,880,617


$   2,919,472


0.2 %


0.1 %

       Savings

4,628,320


4,467,894


4,331,228


4,023,455


3,785,445


3.6 %


22.3 %

       Time

3,049,635


2,896,860


2,718,390


2,572,909


2,484,780


5.3 %


22.7 %

          Total interest-bearing deposits

10,600,495


10,281,272


10,042,837


9,476,981


9,189,697


3.1 %


15.4 %

       Noninterest-bearing

3,061,427


3,175,876


3,317,960


3,438,572


3,605,181


(3.6) %


(15.1) %

          Total deposits

13,661,922


13,457,148


13,360,797


12,915,553


12,794,878


1.5 %


6.8 %

     FHLB short-term borrowings

1,040,000


700,000


800,000


755,000


1,050,300


48.6 %


(1.0) %

     Other

139,172


162,145


137,814


219,188


165,983


(14.2) %


(16.2) %

          Total short-term borrowings

1,179,172


862,145


937,814


974,188


1,216,283


36.8 %


(3.1) %

     Long-term debt

338,556


343,236


344,115


340,902


339,963


(1.4) %


(0.4) %

          Total borrowed funds

1,517,728


1,205,381


1,281,929


1,315,090


1,556,246


25.9 %


(2.5) %

     Accrued interest and other liabilities

660,091


649,706


622,200


694,700


595,606


1.6 %


10.8 %

       Total Liabilities

15,839,741


15,312,235


15,264,926


14,925,343


14,946,730


3.4 %


6.0 %















SHAREHOLDERS' EQUITY














     Common stock

1,635,705


1,632,971


1,638,972


1,636,054


1,632,659


0.2 %


0.2 %

     Retained earnings

1,204,844


1,166,065


1,136,718


1,101,905


1,060,715


3.3 %


13.6 %

     Accumulated other comprehensive income (loss)

(323,409)


(321,109)


(309,819)


(410,005)


(353,010)


0.7 %


(8.4) %

     Treasury stock, at cost

(190,701)


(190,924)


(197,897)


(198,445)


(196,945)


(0.1) %


(3.2) %

       Total Shareholders' Equity

2,326,439


2,287,003


2,267,974


2,129,509


2,143,419


1.7 %


8.5 %

       Total Liabilities and Shareholders' Equity

$  18,166,180


$ 17,599,238


$  17,532,900


$ 17,054,852


$  17,090,149


3.2 %


6.3 %


 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)








Quarterly Averages


Year-to-Date Averages


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


2024


2024


2023


2023


2023


2024


2023

ASSETS














     Cash and due from banks

$      174,435


$      204,119


$      214,678


$      211,670


$      221,527


$      189,277


$      220,133

     Interest-bearing deposits with other banks

599,348


553,654


548,153


386,173


329,584


576,501


323,837

     Investment securities

3,131,541


3,137,665


3,184,408


3,394,237


3,560,453


3,134,603


3,597,678

     Loans held for sale

14,075


12,069


12,547


15,420


11,856


13,072


8,711

     Loans and leases














       Commercial and industrial

3,716,083


3,543,475


3,422,381


3,443,615


3,469,683


3,629,779


3,463,218

       Lease financing

509,758


480,540


419,179


371,598


323,819


495,149


288,217

       Construction real estate

683,780


603,974


540,314


547,884


518,190


643,877


527,192

       Commercial real estate

4,146,764


4,101,238


4,060,733


4,024,798


4,050,946


4,124,001


4,034,077

       Residential real estate

1,361,133


1,336,749


1,320,670


1,260,249


1,181,053


1,348,941


1,148,651

       Home equity

790,384


765,410


750,925


735,251


726,333


777,897


727,254

       Installment

151,753


157,663


160,242


164,092


172,147


154,708


188,947

       Credit card

67,200


65,066


64,037


60,827


59,478


66,133


57,524

          Total loans

11,426,855


11,054,115


10,738,481


10,608,314


10,501,649


11,240,485


10,435,080

       Less:














          Allowance for credit losses

(147,666)


(143,950)


(149,398)


(150,297)


(145,578)


(145,808)


(141,024)

                Net loans

11,279,189


10,910,165


10,589,083


10,458,017


10,356,071


11,094,677


10,294,056

     Premises and equipment

199,096


198,482


194,435


194,228


190,583


198,789


190,465

     Operating leases

156,457


154,655


139,331


132,984


138,725


155,556


122,996

     Goodwill

1,007,657


1,006,477


1,005,870


1,005,844


1,005,791


1,007,067


1,005,752

     Other intangibles

84,577


84,109


85,101


87,427


89,878


84,343


91,225

     Accrued interest and other assets

1,081,876


1,044,826


1,151,349


1,065,389


1,063,587


1,063,351


1,100,743

       Total Assets

$  17,728,251


$ 17,306,221


$  17,124,955


$  16,951,389


$  16,968,055


$  17,517,236


$  16,955,596















LIABILITIES














     Deposits














       Interest-bearing demand

$   2,888,252


$   2,895,768


$   2,988,086


$   2,927,416


$   2,906,855


$   2,892,010


$   2,906,784

       Savings

4,617,658


4,399,768


4,235,658


3,919,590


3,749,902


4,508,713


3,784,164

       Time

2,980,158


2,813,880


2,611,075


2,446,854


2,393,707


2,897,019


2,263,431

          Total interest-bearing deposits

10,486,068


10,109,416


9,834,819


9,293,860


9,050,464


10,297,742


8,954,379

       Noninterest-bearing

3,144,198


3,169,750


3,368,024


3,493,305


3,663,419


3,156,974


3,808,362

          Total deposits

13,630,266


13,279,166


13,202,843


12,787,165


12,713,883


13,454,716


12,762,741

     Federal funds purchased and securities sold














          under agreements to repurchase

750


4,204


3,586


10,788


21,881


2,477


24,118

     FHLB short-term borrowings

669,111


646,187


554,826


878,199


1,028,207


657,649


976,960

     Other

161,913


146,127


185,221


175,682


132,088


154,020


135,622

          Total short-term borrowings

831,774


796,518


743,633


1,064,669


1,182,176


814,146


1,136,700

     Long-term debt

339,472


342,496


340,321


338,402


341,523


340,984


342,565

       Total borrowed funds

1,171,246


1,139,014


1,083,954


1,403,071


1,523,699


1,155,130


1,479,265

     Accrued interest and other liabilities

645,699


622,479


693,676


607,552


592,708


634,089


603,449

       Total Liabilities

15,447,211


15,040,659


14,980,473


14,797,788


14,830,290


15,243,935


14,845,455















SHAREHOLDERS' EQUITY














     Common stock

1,634,183


1,637,835


1,637,197


1,634,102


1,631,230


1,636,009


1,632,307

     Retained earnings

1,179,827


1,144,447


1,111,786


1,076,515


1,034,092


1,162,137


1,012,057

     Accumulated other comprehensive loss

(341,941)


(319,601)


(406,265)


(358,769)


(330,263)


(330,771)


(334,831)

     Treasury stock, at cost

(191,029)


(197,119)


(198,236)


(198,247)


(197,294)


(194,074)


(199,392)

       Total Shareholders' Equity

2,281,040


2,265,562


2,144,482


2,153,601


2,137,765


2,273,301


2,110,141

       Total Liabilities and Shareholders' Equity

$  17,728,251


$ 17,306,221


$  17,124,955


$  16,951,389


$  16,968,055


$  17,517,236


$  16,955,596
















 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)








 Quarterly Averages


Year-to-Date Averages



June 30, 2024


March 31, 2024


June 30, 2023


June 30, 2024


June 30, 2023



Balance


Interest


Yield


Balance


Interest


Yield


Balance


Interest


Yield


Balance


Yield


Balance


Yield

Earning assets



























    Investments:



























      Investment securities


$  3,131,541


$  32,999


4.23 %


$  3,137,665


$  31,388


4.01 %


$  3,560,453


$  35,575


4.01 %


$  3,134,603


4.14 %


$  3,597,678


3.97 %

      Interest-bearing deposits with other banks


599,348


7,960


5.33 %


553,654


7,458


5.40 %


329,584


3,933


4.79 %


576,501


5.39 %


323,837


4.66 %

    Gross loans (1)


11,440,930


211,760


7.42 %


11,066,184


201,840


7.32 %


10,513,505


184,387


7.03 %


11,253,557


7.41 %


10,443,791


6.84 %

       Total earning assets


15,171,819


252,719


6.68 %


14,757,503


240,686


6.54 %


14,403,542


223,895


6.23 %


14,964,661


6.65 %


14,365,306


6.07 %




























Nonearning assets



























    Allowance for credit losses


(147,666)






(143,950)






(145,578)






(145,808)




(141,024)



    Cash and due from banks


174,435






204,119






221,527






189,277




220,133



    Accrued interest and other assets


2,529,663






2,488,549






2,488,564






2,509,106




2,511,181



       Total assets


$ 17,728,251






$ 17,306,221






$ 16,968,055






$ 17,517,236




$ 16,955,596






























Interest-bearing liabilities



























    Deposits:



























      Interest-bearing demand


$  2,888,252


$  14,923


2.07 %


$  2,895,768


$  14,892


2.06 %


$  2,906,855


$    8,351


1.15 %


$  2,892,010


2.08 %


$  2,906,784


1.04 %

      Savings


4,617,658


33,142


2.88 %


4,399,768


29,486


2.69 %


3,749,902


14,055


1.50 %


4,508,713


2.80 %


3,784,164


1.16 %

      Time


2,980,158


34,957


4.70 %


2,813,880


31,697


4.52 %


2,393,707


21,886


3.67 %


2,897,019


4.64 %


2,263,431


3.48 %

    Total interest-bearing deposits


10,486,068


83,022


3.18 %


10,109,416


76,075


3.02 %


9,050,464


44,292


1.96 %


10,297,742


3.12 %


8,954,379


1.71 %

    Borrowed funds



























      Short-term borrowings


831,774


11,395


5.49 %


796,518


10,943


5.51 %


1,182,176


15,536


5.27 %


814,146


5.53 %


1,136,700


5.05 %

      Long-term debt


339,472


4,991


5.90 %


342,496


4,928


5.77 %


341,523


4,835


5.68 %


340,984


5.87 %


342,565


5.71 %

        Total borrowed funds


1,171,246


16,386


5.61 %


1,139,014


15,871


5.59 %


1,523,699


20,371


5.36 %


1,155,130


5.63 %


1,479,265


5.20 %

       Total interest-bearing liabilities


11,657,314


99,408


3.42 %


11,248,430


91,946


3.28 %


10,574,163


64,663


2.45 %


11,452,872


3.37 %


10,433,644


2.20 %




























Noninterest-bearing liabilities



























    Noninterest-bearing demand deposits


3,144,198






3,169,750






3,663,419






3,156,974




3,808,362



    Other liabilities


645,699






622,479






592,708






634,089




603,449



    Shareholders' equity


2,281,040






2,265,562






2,137,765






2,273,301




2,110,141



       Total liabilities & shareholders' equity


$ 17,728,251






$ 17,306,221






$ 16,968,055






$ 17,517,236




$ 16,955,596






























Net interest income


$      153,311






$      148,740






$      159,232






$      302,051




$      318,550



Net interest spread






3.26 %






3.26 %






3.78 %




3.28 %




3.87 %

Net interest margin






4.06 %






4.05 %






4.43 %




4.06 %




4.47 %




























Tax equivalent adjustment






0.04 %






0.05 %






0.05 %




0.04 %




0.04 %

Net interest margin (fully tax equivalent)






4.10 %






4.10 %






4.48 %




4.10 %




4.51 %





















































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

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)

(Dollars in thousands)

(Unaudited)









































 Linked Qtr. Income Variance


 Comparable Qtr. Income Variance


Year-to-Date Income Variance



Rate


Volume


Total


Rate


Volume


Total


Rate


Volume


Total

Earning assets



















    Investment securities


$     1,676


$        (65)


$     1,611


$     1,944


$    (4,520)


$    (2,576)


$     2,993


$    (9,512)


$    (6,519)

    Interest-bearing deposits with other banks


(105)


607


502


444


3,583


4,027


1,184


6,757


7,941

    Gross loans (2)


2,984


6,936


9,920


10,207


17,166


27,373


29,746


29,761


59,507

       Total earning assets


4,555


7,478


12,033


12,595


16,229


28,824


33,923


27,006


60,929




















Interest-bearing liabilities



















    Total interest-bearing deposits


$     3,965


$     2,982


$     6,947


$    27,364


$    11,366


$    38,730


$    62,594


$    20,755


$    83,349

    Borrowed funds



















    Short-term borrowings


(31)


483


452


659


(4,800)


(4,141)


2,702


(8,850)


(6,148)

    Long-term debt


107


(44)


63


186


(30)


156


273


(46)


227

       Total borrowed funds


76


439


515


845


(4,830)


(3,985)


2,975


(8,896)


(5,921)

       Total interest-bearing liabilities


4,041


3,421


7,462


28,209


6,536


34,745


65,569


11,859


77,428

          Net interest income (1)


$        514


$     4,057


$     4,571


$  (15,614)


$     9,693


$    (5,921)


$  (31,646)


$    15,147


$  (16,499)
















(1) Not tax equivalent.















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

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)












Six months ended,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


June 30,


2024


2024


2023


2023


2023


2024


2023

ALLOWANCE FOR CREDIT LOSS ACTIVITY











Balance at beginning of period

$  144,274


$  141,433


$  145,201


$  148,646


$  141,591


$ 141,433


$ 132,977

  Provision for credit losses

16,157


13,419


8,804


12,907


12,719


29,576


21,363

  Gross charge-offs














    Commercial and industrial

2,149


2,695


6,866


9,207


2,372


4,844


3,102

    Lease financing

190


3


4,244


76


90


193


103

    Construction real estate

0


0


0


0


0


0


0

    Commercial real estate

2


5,319


1


6,008


2,648


5,321


2,714

    Residential real estate

6


65


9


10


20


71


20

    Home equity

122


25


174


54


21


147


112

    Installment

2,034


2,236


2,054


1,349


1,515


4,270


3,039

    Credit card

532


794


363


319


274


1,326


491

      Total gross charge-offs

5,035


11,137


13,711


17,023


6,940


16,172


9,581

  Recoveries














    Commercial and industrial

236


162


459


335


631


398


740

    Lease financing

1


59


52


1


1


60


2

    Construction real estate

0


0


0


0


0


0


0

    Commercial real estate

137


38


93


39


153


175


2,391

    Residential real estate

37


24


24


44


113


61


179

    Home equity

118


80


178


125


232


198


312

    Installment

219


145


210


87


90


364


144

    Credit card

41


51


123


40


56


92


119

      Total recoveries

789


559


1,139


671


1,276


1,348


3,887

  Total net charge-offs

4,246


10,578


12,572


16,352


5,664


14,824


5,694

Ending allowance for credit losses

$  156,185


$  144,274


$  141,433


$  145,201


$  148,646


$ 156,185


$ 148,646















NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)











  Commercial and industrial

0.21 %


0.29 %


0.74 %


1.02 %


0.20 %


0.25 %


0.14 %

  Lease financing

0.15 %


(0.05) %


3.97 %


0.08 %


0.11 %


0.05 %


0.07 %

  Construction real estate

0.00 %


0.00 %


0.00 %


0.00 %


0.00 %


0.00 %


0.00 %

  Commercial real estate

(0.01) %


0.52 %


(0.01) %


0.59 %


0.25 %


0.25 %


0.02 %

  Residential real estate

(0.01) %


0.01 %


0.00 %


(0.01) %


(0.03) %


0.00 %


(0.03) %

  Home equity

0.00 %


(0.03) %


0.00 %


(0.04) %


(0.12) %


(0.01) %


(0.06) %

  Installment

4.81 %


5.33 %


4.57 %


3.05 %


3.32 %


5.08 %


3.09 %

  Credit card

2.94 %


4.59 %


1.49 %


1.82 %


1.47 %


3.75 %


1.30 %

     Total net charge-offs

0.15 %


0.38 %


0.46 %


0.61 %


0.22 %


0.27 %


0.11 %















COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS



  Nonaccrual loans














    Commercial and industrial

$    17,665


$    14,532


$    15,746


$    17,152


$    21,508


$   17,665


$   21,508

    Lease financing

5,374


3,794


3,610


7,731


4,833


5,374


4,833

    Construction real estate

0


0


0


0


0


0


0

    Commercial real estate

22,942


23,055


27,984


33,019


11,876


22,942


11,876

    Residential real estate

12,715


12,836


14,067


12,328


11,697


12,715


11,697

    Home equity

3,295


4,036


3,476


3,937


3,239


3,295


3,239

    Installment

682


984


870


774


568


682


568

      Total nonaccrual loans

62,673


59,237


65,753


74,941


53,721


62,673


53,721

  Other real estate owned (OREO)

30


161


106


142


281


30


281

     Total nonperforming assets

62,703


59,398


65,859


75,083


54,002


62,703


54,002

  Accruing loans past due 90 days or more

1,573


820


2,028


698


873


1,573


873

     Total underperforming assets

$    64,276


$    60,218


$    67,887


$    75,781


$    54,875


$   64,276


$   54,875

Total classified assets

$  195,277


$  162,348


$  140,995


$  140,552


$  138,909


$ 195,277


$ 138,909















CREDIT QUALITY RATIOS











Allowance for credit losses to














     Nonaccrual loans

249.21 %


243.55 %


215.10 %


193.75 %


276.70 %


249.21 %


276.70 %

     Total ending loans

1.36 %


1.29 %


1.29 %


1.36 %


1.41 %


1.36 %


1.41 %

Nonaccrual loans to total loans

0.54 %


0.53 %


0.60 %


0.70 %


0.51 %


0.54 %


0.51 %

Nonperforming assets to














     Ending loans, plus OREO

0.54 %


0.53 %


0.60 %


0.71 %


0.51 %


0.54 %


0.51 %

     Total assets

0.35 %


0.34 %


0.38 %


0.44 %


0.32 %


0.35 %


0.32 %

Classified assets to total assets

1.07 %


0.92 %


0.80 %


0.82 %


0.81 %


1.07 %


0.81 %

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)


Three Months Ended,


Six months ended,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


June 30,


June 30,


June 30,


2024


2024


2023


2023


2023


2024


2023

PER COMMON SHARE














Market Price














  High

$           23.78


$           23.68


$           24.28


$           24.02


$           22.27


$           23.78


$           26.24

  Low

$           20.79


$           21.04


$           17.37


$           19.19


$           18.20


$           20.79


$           18.20

  Close

$           22.22


$           22.42


$           23.75


$           19.60


$           20.44


$           22.22


$           20.44















Average shares outstanding - basic

94,438,235


94,218,067


94,063,570


94,030,275


93,924,068


94,328,151


93,828,829

Average shares outstanding - diluted

95,470,093


95,183,998


95,126,316


95,126,269


95,169,348


95,327,045


95,065,334

Ending shares outstanding

95,486,010


95,473,595


95,141,244


95,117,180


95,185,483


95,486,010


95,185,483















Total shareholders' equity

$    2,326,439


$    2,287,003


$    2,267,974


$    2,129,509


$    2,143,419


$    2,326,439


$    2,143,419















REGULATORY CAPITAL

Preliminary










Preliminary



Common equity tier 1 capital

$    1,626,345


$    1,582,113


$    1,568,815


$    1,527,793


$    1,481,913


$    1,626,345


$    1,481,913

Common equity tier 1 capital ratio

11.78 %


11.67 %


11.73 %


11.60 %


11.34 %


11.78 %


11.34 %

Tier 1 capital

$    1,671,258


$    1,626,899


$    1,613,480


$    1,572,248


$    1,526,362


$    1,671,258


$    1,526,362

Tier 1 ratio

12.11 %


12.00 %


12.06 %


11.94 %


11.68 %


12.11 %


11.68 %

Total capital

$    1,997,378


$    1,940,762


$    1,907,441


$    1,868,490


$    1,851,144


$    1,997,378


$    1,851,144

Total capital ratio

14.47 %


14.31 %


14.26 %


14.19 %


14.16 %


14.47 %


14.16 %

Total capital in excess of minimum requirement

$       548,037


$       516,704


$       503,152


$       485,580


$       478,911


$       548,037


$       478,911

Total risk-weighted assets

$  13,803,249


$  13,562,455


$  13,374,177


$  13,170,574


$  13,068,888


$  13,803,249


$  13,068,888

Leverage ratio

9.73 %


9.75 %


9.70 %


9.59 %


9.33 %


9.73 %


9.33 %















OTHER CAPITAL RATIOS














Ending shareholders' equity to ending assets

12.81 %


12.99 %


12.94 %


12.49 %


12.54 %


12.81 %


12.54 %

Ending tangible shareholders' equity to ending tangible assets (1)

7.23 %


7.23 %


7.17 %


6.50 %


6.56 %


7.23 %


6.56 %

Average shareholders' equity to average assets

12.87 %


13.09 %


12.52 %


12.70 %


12.60 %


12.98 %


12.45 %

Average tangible shareholders' equity to average tangible assets (1)

7.15 %


7.25 %


6.57 %


6.69 %


6.57 %


7.20 %


6.39 %















REPURCHASE PROGRAM (2)














Shares repurchased

0


0


0


0


0


0


0

Average share repurchase price

N/A


N/A


N/A


N/A


N/A


N/A


N/A

Total cost of shares repurchased

N/A


N/A


N/A


N/A


N/A


N/A


N/A















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

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






















N/A = Not applicable














 

Cision View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-second-quarter-2024-financial-results-and-quarterly-dividend-increase-302207028.html

SOURCE First Financial Bancorp.

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