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

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

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

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

Second quarter 2024 highlights include:

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

_________________________________________________________________________________________

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

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

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

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

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

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

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

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

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

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

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

Forward-Looking Statements

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

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

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

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

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

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

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

(Unaudited)















Three Months Ended,

Six months ended,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

2024

2024

2023

2023

2023

2024

2023

RESULTS OF OPERATIONS












Net income

$        60,805

$        50,689

$        56,732

$        63,061

$        65,667

$       111,494

$      136,070

Net earnings per share - basic

$            0.64

$            0.54

$            0.60

$            0.67

$            0.70

$            1.18

$            1.45

Net earnings per share - diluted

$            0.64

$            0.53

$            0.60

$            0.66

$            0.69

$            1.17

$            1.43

Dividends declared per share

$            0.23

$            0.23

$            0.23

$            0.23

$            0.23

$            0.46

$            0.46














KEY FINANCIAL RATIOS












Return on average assets

1.38 %

1.18 %

1.31 %

1.48 %

1.55 %

1.28 %

1.62 %

Return on average shareholders' equity

10.72 %

9.00 %

10.50 %

11.62 %

12.32 %

9.86 %

13.00 %

Return on average tangible shareholders' equity (1)

20.57 %

17.35 %

21.36 %

23.60 %

25.27 %

18.97 %

27.08 %














Net interest margin

4.06 %

4.05 %

4.21 %

4.28 %

4.43 %

4.06 %

4.47 %

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

4.10 %

4.10 %

4.26 %

4.33 %

4.48 %

4.10 %

4.51 %














Ending shareholders' equity as a percent of ending assets

12.81 %

12.99 %

12.94 %

12.49 %

12.54 %

12.81 %

12.54 %

Ending tangible shareholders' equity as a percent of:












Ending tangible assets (1)

7.23 %

7.23 %

7.17 %

6.50 %

6.56 %

7.23 %

6.56 %

Risk-weighted assets (1)

8.95 %

8.80 %

8.81 %

7.88 %

8.03 %

8.95 %

8.03 %














Average shareholders' equity as a percent of average assets

12.87 %

13.09 %

12.52 %

12.70 %

12.60 %

12.98 %

12.45 %

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

7.15 %

7.25 %

6.57 %

6.69 %

6.57 %

7.20 %

6.39 %














Book value per share

$           24.36

$           23.95

$           23.84

$           22.39

$           22.52

$           24.36

$           22.52

Tangible book value per share (1)

$           12.94

$           12.50

$           12.38

$           10.91

$           11.02

$           12.94

$           11.02














Common equity tier 1 ratio (3)

11.78 %

11.67 %

11.73 %

11.60 %

11.34 %

11.78 %

11.34 %

Tier 1 ratio (3)

12.11 %

12.00 %

12.06 %

11.94 %

11.68 %

12.11 %

11.68 %

Total capital ratio (3)

14.47 %

14.31 %

14.26 %

14.19 %

14.16 %

14.47 %

14.16 %

Leverage ratio (3)

9.73 %

9.75 %

9.70 %

9.59 %

9.33 %

9.73 %

9.33 %














AVERAGE BALANCE SHEET ITEMS












Loans (4)

$  11,440,930

$  11,066,184

$  10,751,028

$  10,623,734

$  10,513,505

$  11,253,557

$  10,443,791

Investment securities

3,131,541

3,137,665

3,184,408

3,394,237

3,560,453

3,134,603

3,597,678

Interest-bearing deposits with other banks

599,348

553,654

548,153

386,173

329,584

576,501

323,837

  Total earning assets

$  15,171,819

$  14,757,503

$  14,483,589

$  14,404,144

$  14,403,542

$  14,964,661

$  14,365,306

Total assets

$  17,728,251

$  17,306,221

$  17,124,955

$  16,951,389

$  16,968,055

$  17,517,236

$  16,955,596

Noninterest-bearing deposits

$    3,144,198

$    3,169,750

$    3,368,024

$    3,493,305

$    3,663,419

$    3,156,974

$    3,808,362

Interest-bearing deposits

10,486,068

10,109,416

9,834,819

9,293,860

9,050,464

10,297,742

8,954,379

  Total deposits

$  13,630,266

$  13,279,166

$  13,202,843

$  12,787,165

$  12,713,883

$  13,454,716

$  12,762,741

Borrowings

$    1,171,246

$    1,139,014

$    1,083,954

$    1,403,071

$    1,523,699

$    1,155,130

$    1,479,265

Shareholders' equity

$    2,281,040

$    2,265,562

$    2,144,482

$    2,153,601

$    2,137,765

$    2,273,301

$    2,110,141














CREDIT QUALITY RATIOS











Allowance to ending loans

1.36 %

1.29 %

1.29 %

1.36 %

1.41 %

1.36 %

1.41 %

Allowance to nonaccrual loans

249.21 %

243.55 %

215.10 %

193.75 %

276.70 %

249.21 %

276.70 %

Nonaccrual loans to total loans

0.54 %

0.53 %

0.60 %

0.70 %

0.51 %

0.54 %

0.51 %

Nonperforming assets to ending loans, plus OREO

0.54 %

0.53 %

0.60 %

0.71 %

0.51 %

0.54 %

0.51 %

Nonperforming assets to total assets

0.35 %

0.34 %

0.38 %

0.44 %

0.32 %

0.35 %

0.32 %

Classified assets to total assets

1.07 %

0.92 %

0.80 %

0.82 %

0.81 %

1.07 %

0.81 %

Net charge-offs to average loans (annualized)

0.15 %

0.38 %

0.46 %

0.61 %

0.22 %

0.27 %

0.11 %

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

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

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

(4) Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)





Three months ended,

Six months ended,

June 30,

June 30,

2024

2023

% Change

2024

2023

% Change

Interest income










  Loans and leases, including fees

$     211,760

$     184,387

14.8 %

$     413,600

$     354,093

16.8 %

  Investment securities










     Taxable

30,295

32,062

(5.5) %

58,591

63,929

(8.3) %

     Tax-exempt

2,704

3,513

(23.0) %

5,796

6,977

(16.9) %

        Total investment securities interest

32,999

35,575

(7.2) %

64,387

70,906

(9.2) %

  Other earning assets

7,960

3,933

102.4 %

15,418

7,477

106.2 %

       Total interest income

252,719

223,895

12.9 %

493,405

432,476

14.1 %












Interest expense










  Deposits

83,022

44,292

87.4 %

159,097

75,748

110.0 %

  Short-term borrowings

11,395

15,536

(26.7) %

22,338

28,486

(21.6) %

  Long-term borrowings

4,991

4,835

3.2 %

9,919

9,692

2.3 %

      Total interest expense

99,408

64,663

53.7 %

191,354

113,926

68.0 %

      Net interest income

153,311

159,232

(3.7) %

302,051

318,550

(5.2) %

  Provision for credit losses-loans and leases

16,157

12,719

27.0 %

29,576

21,363

38.4 %

  Provision for credit losses-unfunded commitments

286

(1,994)

(114.3) %

(1,973)

(159)

1,140.9 %

      Net interest income after provision for credit losses

136,868

148,507

(7.8) %

274,448

297,346

(7.7) %












Noninterest income










  Service charges on deposit accounts

7,188

6,972

3.1 %

14,100

13,486

4.6 %

  Wealth management fees

7,172

6,713

6.8 %

13,848

13,047

6.1 %

  Bankcard income

3,900

3,692

5.6 %

7,042

7,284

(3.3) %

  Client derivative fees

763

1,827

(58.2) %

2,013

2,832

(28.9) %

  Foreign exchange income

16,787

15,039

11.6 %

27,222

31,937

(14.8) %

  Leasing business income

16,828

10,265

63.9 %

31,417

23,929

31.3 %

  Net gains from sales of loans

4,479

3,839

16.7 %

8,263

6,174

33.8 %

  Net gain (loss) on sale of investment securities

0

(384)

(100.0) %

(5,277)

(403)

1,209.4 %

  Net gain (loss) on equity  securities

(64)

(82)

(22.0) %

26

58

(55.2) %

  Other

4,448

5,377

(17.3) %

9,359

10,457

(10.5) %

      Total noninterest income

61,501

53,258

15.5 %

108,013

108,801

(0.7) %












Noninterest expenses










  Salaries and employee benefits

75,225

74,199

1.4 %

149,262

146,453

1.9 %

  Net occupancy

5,793

5,606

3.3 %

11,716

11,291

3.8 %

  Furniture and equipment

3,646

3,362

8.4 %

7,334

6,679

9.8 %

  Data processing

8,877

9,871

(10.1) %

17,182

18,891

(9.0) %

  Marketing

2,605

2,802

(7.0) %

4,567

4,962

(8.0) %

  Communication

816

644

26.7 %

1,611

1,278

26.1 %

  Professional services

2,885

2,308

25.0 %

5,153

4,254

21.1 %

  State intangible tax

875

964

(9.2) %

1,752

1,949

(10.1) %

  FDIC assessments

2,657

2,806

(5.3) %

5,437

5,632

(3.5) %

  Intangible amortization

2,396

2,601

(7.9) %

4,697

5,201

(9.7) %

  Leasing business expense

10,128

6,730

50.5 %

19,882

14,668

35.5 %

  Other

7,671

8,722

(12.0) %

17,336

16,050

8.0 %

      Total noninterest expenses

123,574

120,615

2.5 %

245,929

237,308

3.6 %

Income before income taxes

74,795

81,150

(7.8) %

136,532

168,839

(19.1) %

Income tax expense (benefit)

13,990

15,483

(9.6) %

25,038

32,769

(23.6) %

      Net income

$       60,805

$       65,667

(7.4) %

$     111,494

$     136,070

(18.1) %












ADDITIONAL DATA










Net earnings per share - basic

$          0.64

$          0.70


$          1.18

$          1.45

Net earnings per share - diluted

$          0.64

$          0.69


$          1.17

$          1.43

Dividends declared per share

$          0.23

$          0.23


$          0.46

$          0.46













Return on average assets

1.38 %

1.55 %


1.28 %

1.62 %

Return on average shareholders' equity

10.72 %

12.32 %


9.86 %

13.00 %













Interest income

$     252,719

$     223,895

12.9 %

$     493,405

$     432,476

14.1 %

Tax equivalent adjustment

1,418

1,601

(11.4) %

2,953

3,025

(2.4) %

   Interest income - tax equivalent

254,137

225,496

12.7 %

496,358

435,501

14.0 %

Interest expense

99,408

64,663

53.7 %

191,354

113,926

68.0 %

   Net interest income - tax equivalent

$     154,729

$     160,833

(3.8) %

$     305,004

$     321,575

(5.2) %












Net interest margin

4.06 %

4.43 %


4.06 %

4.47 %

Net interest margin (fully tax equivalent) (1)

4.10 %

4.48 %


4.10 %

4.51 %













Full-time equivalent employees

2,144

2,193



















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

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)









2024

Second

First

Year to

% Change

Quarter

Quarter

Date

Linked Qtr.

Interest income






  Loans and leases, including fees

$ 211,760

$ 201,840

$ 413,600

4.9 %

  Investment securities






     Taxable

30,295

28,296

58,591

7.1 %

     Tax-exempt

2,704

3,092

5,796

(12.5) %

        Total investment securities interest

32,999

31,388

64,387

5.1 %

  Other earning assets

7,960

7,458

15,418

6.7 %

       Total interest income

252,719

240,686

493,405

5.0 %








Interest expense






  Deposits

83,022

76,075

159,097

9.1 %

  Short-term borrowings

11,395

10,943

22,338

4.1 %

  Long-term borrowings

4,991

4,928

9,919

1.3 %

      Total interest expense

99,408

91,946

191,354

8.1 %

      Net interest income

153,311

148,740

302,051

3.1 %

  Provision for credit losses-loans and leases

16,157

13,419

29,576

20.4 %

  Provision for credit losses-unfunded commitments

286

(2,259)

(1,973)

(112.7) %

      Net interest income after provision for credit losses

136,868

137,580

274,448

(0.5) %








Noninterest income






  Service charges on deposit accounts

7,188

6,912

14,100

4.0 %

  Wealth management fees

7,172

6,676

13,848

7.4 %

  Bankcard income

3,900

3,142

7,042

24.1 %

  Client derivative fees

763

1,250

2,013

(39.0) %

  Foreign exchange income

16,787

10,435

27,222

60.9 %

  Leasing business income

16,828

14,589

31,417

15.3 %

  Net gains from sales of loans

4,479

3,784

8,263

18.4 %

  Net gain (loss) on sale of investment securities

0

(5,277)

(5,277)

(100.0) %

  Net gain (loss) on equity securities

(64)

90

26

171.1 %

  Other

4,448

4,911

9,359

(9.4) %

      Total noninterest income

61,501

46,512

108,013

32.2 %








Noninterest expenses






  Salaries and employee benefits

75,225

74,037

149,262

1.6 %

  Net occupancy

5,793

5,923

11,716

(2.2) %

  Furniture and equipment

3,646

3,688

7,334

(1.1) %

  Data processing

8,877

8,305

17,182

6.9 %

  Marketing

2,605

1,962

4,567

32.8 %

  Communication

816

795

1,611

2.6 %

  Professional services

2,885

2,268

5,153

27.2 %

  State intangible tax

875

877

1,752

(0.2) %

  FDIC assessments

2,657

2,780

5,437

(4.4) %

  Intangible amortization

2,396

2,301

4,697

4.1 %

  Leasing business expense

10,128

9,754

19,882

3.8 %

  Other

7,671

9,665

17,336

(20.6) %

      Total noninterest expenses

123,574

122,355

245,929

1.0 %

Income before income taxes

74,795

61,737

136,532

21.2 %

Income tax expense (benefit)

13,990

11,048

25,038

26.6 %

      Net income

$   60,805

$   50,689

$ 111,494

20.0 %








ADDITIONAL DATA






Net earnings per share - basic

$      0.64

$      0.54

$      1.18

Net earnings per share - diluted

$      0.64

$      0.53

$      1.17

Dividends declared per share

$      0.23

$      0.23

$      0.46









Return on average assets

1.38 %

1.18 %

1.28 %

Return on average shareholders' equity

10.72 %

9.00 %

9.86 %









Interest income

$ 252,719

$ 240,686

$ 493,405

5.0 %

Tax equivalent adjustment

1,418

1,535

2,953

(7.6) %

   Interest income - tax equivalent

254,137

242,221

496,358

4.9 %

Interest expense

99,408

91,946

191,354

8.1 %

   Net interest income - tax equivalent

$ 154,729

$ 150,275

$ 305,004

3.0 %








Net interest margin

4.06 %

4.05 %

4.06 %

Net interest margin (fully tax equivalent) (1)

4.10 %

4.10 %

4.10 %









Full-time equivalent employees

2,144

2,116











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

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)











2023

Fourth

Third

Second

First

Full

Quarter

Quarter

Quarter

Quarter

Year

Interest income








  Loans and leases, including fees

$ 197,416

$  192,261

$  184,387

$  169,706

$  743,770

  Investment securities








     Taxable

30,294

31,297

32,062

31,867

125,520

     Tax-exempt

3,402

3,522

3,513

3,464

13,901

        Total investment securities interest

33,696

34,819

35,575

35,331

139,421

  Other earning assets

7,325

5,011

3,933

3,544

19,813

       Total interest income

238,437

232,091

223,895

208,581

903,004










Interest expense








  Deposits

69,193

57,069

44,292

31,456

202,010

  Short-term borrowings

10,277

14,615

15,536

12,950

53,378

  Long-term borrowings

5,202

4,952

4,835

4,857

19,846

      Total interest expense

84,672

76,636

64,663

49,263

275,234

      Net interest income

153,765

155,455

159,232

159,318

627,770

  Provision for credit losses-loans and leases

8,804

12,907

12,719

8,644

43,074

  Provision for credit losses-unfunded commitments

1,426

(1,234)

(1,994)

1,835

33

      Net interest income after provision for credit losses

143,535

143,782

148,507

148,839

584,663










Noninterest income








  Service charges on deposit accounts

6,846

6,957

6,972

6,514

27,289

  Wealth management fees

6,091

6,943

6,713

6,334

26,081

  Bankcard income

3,349

3,406

3,692

3,592

14,039

  Client derivative fees

711

1,612

1,827

1,005

5,155

  Foreign exchange income

8,730

13,384

15,039

16,898

54,051

  Leasing business income

12,856

14,537

10,265

13,664

51,322

  Net gains from sales of loans

2,957

4,086

3,839

2,335

13,217

  Net gain (loss) on sale of investment securities

(851)

(4)

(384)

(19)

(1,258)

  Net  gain (loss) on equity securities

202

(54)

(82)

140

206

  Other

6,102

5,761

5,377

5,080

22,320

      Total noninterest income

46,993

56,628

53,258

55,543

212,422










Noninterest expenses








  Salaries and employee benefits

70,637

75,641

74,199

72,254

292,731

  Net occupancy

5,890

5,809

5,606

5,685

22,990

  Furniture and equipment

3,523

3,341

3,362

3,317

13,543

  Data processing

8,488

8,473

9,871

9,020

35,852

  Marketing

2,087

2,598

2,802

2,160

9,647

  Communication

707

744

644

634

2,729

  Professional services

3,148

2,524

2,308

1,946

9,926

  State intangible tax

984

981

964

985

3,914

  FDIC assessments

3,651

2,665

2,806

2,826

11,948

  Intangible amortization

2,601

2,600

2,601

2,600

10,402

  Leasing business expense

8,955

8,877

6,730

7,938

32,500

  Other

8,466

7,791

8,722

7,328

32,307

      Total noninterest expenses

119,137

122,044

120,615

116,693

478,489

Income before income taxes

71,391

78,366

81,150

87,689

318,596

Income tax expense (benefit)

14,659

15,305

15,483

17,286

62,733

      Net income

$   56,732

$   63,061

$   65,667

$   70,403

$  255,863










ADDITIONAL DATA








Net earnings per share - basic

$      0.60

$      0.67

$      0.70

$      0.75

$       2.72

Net earnings per share - diluted

$      0.60

$      0.66

$      0.69

$      0.74

$       2.69

Dividends declared per share

$      0.23

$      0.23

$      0.23

$      0.23

$       0.92










Return on average assets

1.31 %

1.48 %

1.55 %

1.69 %

1.51 %

Return on average shareholders' equity

10.50 %

11.62 %

12.32 %

13.71 %

12.01 %










Interest income

$ 238,437

$  232,091

$  223,895

$  208,581

$  903,004

Tax equivalent adjustment

1,672

1,659

1,601

1,424

6,356

   Interest income - tax equivalent

240,109

233,750

225,496

210,005

909,360

Interest expense

84,672

76,636

64,663

49,263

275,234

   Net interest income - tax equivalent

$ 155,437

$  157,114

$  160,833

$  160,742

$  634,126










Net interest margin

4.21 %

4.28 %

4.43 %

4.51 %

4.36 %

Net interest margin (fully tax equivalent) (1)

4.26 %

4.33 %

4.48 %

4.55 %

4.40 %










Full-time equivalent employees

2,129

2,121

2,193

2,066











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

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)















June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

% Change

% Change

2024

2024

2023

2023

2023

Linked Qtr.

Comp Qtr.

ASSETS












     Cash and due from banks

$      193,794

$      199,407

$      213,059

$      220,335

$      217,385

(2.8) %

(10.9) %

     Interest-bearing deposits with other banks

738,555

751,290

792,960

452,867

485,241

(1.7) %

52.2 %

     Investment securities available-for-sale

3,036,758

2,850,667

3,021,126

3,044,361

3,249,404

6.5 %

(6.5) %

     Investment securities held-to-maturity

78,921

79,542

80,321

81,236

82,372

(0.8) %

(4.2) %

     Other investments

132,412

125,548

129,945

133,725

141,892

5.5 %

(6.7) %

     Loans held for sale

16,911

11,534

9,213

12,391

15,267

46.6 %

10.8 %

     Loans and leases












       Commercial and industrial

3,782,487

3,591,428

3,501,221

3,420,873

3,433,162

5.3 %

10.2 %

       Lease financing

534,557

492,862

474,817

399,973

360,801

8.5 %

48.2 %

       Construction real estate

741,406

641,596

564,832

578,824

536,464

15.6 %

38.2 %

       Commercial real estate

4,076,596

4,145,969

4,080,939

3,992,654

4,048,460

(1.7) %

0.7 %

       Residential real estate

1,377,290

1,344,677

1,333,674

1,293,470

1,221,484

2.4 %

12.8 %

       Home equity

800,860

773,811

758,676

743,991

728,711

3.5 %

9.9 %

       Installment

148,530

153,838

159,078

160,648

165,216

(3.5) %

(10.1) %

       Credit card

59,477

60,939

59,939

56,386

55,911

(2.4) %

6.4 %

          Total loans

11,521,203

11,205,120

10,933,176

10,646,819

10,550,209

2.8 %

9.2 %

       Less:












          Allowance for credit losses

(156,185)

(144,274)

(141,433)

(145,201)

(148,646)

8.3 %

5.1 %

                Net loans

11,365,018

11,060,846

10,791,743

10,501,618

10,401,563

2.7 %

9.3 %

     Premises and equipment

197,873

198,428

194,740

192,572

192,077

(0.3) %

3.0 %

     Operating leases

167,472

161,473

153,214

136,883

132,272

3.7 %

26.6 %

     Goodwill

1,007,656

1,007,656

1,005,868

1,005,868

1,005,828

0.0 %

0.2 %

     Other intangibles

83,528

85,603

83,949

86,378

88,662

(2.4) %

(5.8) %

     Accrued interest and other assets

1,147,282

1,067,244

1,056,762

1,186,618

1,078,186

7.5 %

6.4 %

       Total Assets

$  18,166,180

$ 17,599,238

$  17,532,900

$ 17,054,852

$  17,090,149

3.2 %

6.3 %














LIABILITIES












     Deposits












       Interest-bearing demand

$   2,922,540

$   2,916,518

$   2,993,219

$   2,880,617

$   2,919,472

0.2 %

0.1 %

       Savings

4,628,320

4,467,894

4,331,228

4,023,455

3,785,445

3.6 %

22.3 %

       Time

3,049,635

2,896,860

2,718,390

2,572,909

2,484,780

5.3 %

22.7 %

          Total interest-bearing deposits

10,600,495

10,281,272

10,042,837

9,476,981

9,189,697

3.1 %

15.4 %

       Noninterest-bearing

3,061,427

3,175,876

3,317,960

3,438,572

3,605,181

(3.6) %

(15.1) %

          Total deposits

13,661,922

13,457,148

13,360,797

12,915,553

12,794,878

1.5 %

6.8 %

     FHLB short-term borrowings

1,040,000

700,000

800,000

755,000

1,050,300

48.6 %

(1.0) %

     Other

139,172

162,145

137,814

219,188

165,983

(14.2) %

(16.2) %

          Total short-term borrowings

1,179,172

862,145

937,814

974,188

1,216,283

36.8 %

(3.1) %

     Long-term debt

338,556

343,236

344,115

340,902

339,963

(1.4) %

(0.4) %

          Total borrowed funds

1,517,728

1,205,381

1,281,929

1,315,090

1,556,246

25.9 %

(2.5) %

     Accrued interest and other liabilities

660,091

649,706

622,200

694,700

595,606

1.6 %

10.8 %

       Total Liabilities

15,839,741

15,312,235

15,264,926

14,925,343

14,946,730

3.4 %

6.0 %














SHAREHOLDERS' EQUITY












     Common stock

1,635,705

1,632,971

1,638,972

1,636,054

1,632,659

0.2 %

0.2 %

     Retained earnings

1,204,844

1,166,065

1,136,718

1,101,905

1,060,715

3.3 %

13.6 %

     Accumulated other comprehensive income (loss)

(323,409)

(321,109)

(309,819)

(410,005)

(353,010)

0.7 %

(8.4) %

     Treasury stock, at cost

(190,701)

(190,924)

(197,897)

(198,445)

(196,945)

(0.1) %

(3.2) %

       Total Shareholders' Equity

2,326,439

2,287,003

2,267,974

2,129,509

2,143,419

1.7 %

8.5 %

       Total Liabilities and Shareholders' Equity

$  18,166,180

$ 17,599,238

$  17,532,900

$ 17,054,852

$  17,090,149

3.2 %

6.3 %

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)







Quarterly Averages

Year-to-Date Averages

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

2024

2024

2023

2023

2023

2024

2023

ASSETS












     Cash and due from banks

$      174,435

$      204,119

$      214,678

$      211,670

$      221,527

$      189,277

$      220,133

     Interest-bearing deposits with other banks

599,348

553,654

548,153

386,173

329,584

576,501

323,837

     Investment securities

3,131,541

3,137,665

3,184,408

3,394,237

3,560,453

3,134,603

3,597,678

     Loans held for sale

14,075

12,069

12,547

15,420

11,856

13,072

8,711

     Loans and leases












       Commercial and industrial

3,716,083

3,543,475

3,422,381

3,443,615

3,469,683

3,629,779

3,463,218

       Lease financing

509,758

480,540

419,179

371,598

323,819

495,149

288,217

       Construction real estate

683,780

603,974

540,314

547,884

518,190

643,877

527,192

       Commercial real estate

4,146,764

4,101,238

4,060,733

4,024,798

4,050,946

4,124,001

4,034,077

       Residential real estate

1,361,133

1,336,749

1,320,670

1,260,249

1,181,053

1,348,941

1,148,651

       Home equity

790,384

765,410

750,925

735,251

726,333

777,897

727,254

       Installment

151,753

157,663

160,242

164,092

172,147

154,708

188,947

       Credit card

67,200

65,066

64,037

60,827

59,478

66,133

57,524

          Total loans

11,426,855

11,054,115

10,738,481

10,608,314

10,501,649

11,240,485

10,435,080

       Less:












          Allowance for credit losses

(147,666)

(143,950)

(149,398)

(150,297)

(145,578)

(145,808)

(141,024)

                Net loans

11,279,189

10,910,165

10,589,083

10,458,017

10,356,071

11,094,677

10,294,056

     Premises and equipment

199,096

198,482

194,435

194,228

190,583

198,789

190,465

     Operating leases

156,457

154,655

139,331

132,984

138,725

155,556

122,996

     Goodwill

1,007,657

1,006,477

1,005,870

1,005,844

1,005,791

1,007,067

1,005,752

     Other intangibles

84,577

84,109

85,101

87,427

89,878

84,343

91,225

     Accrued interest and other assets

1,081,876

1,044,826

1,151,349

1,065,389

1,063,587

1,063,351

1,100,743

       Total Assets

$  17,728,251

$ 17,306,221

$  17,124,955

$  16,951,389

$  16,968,055

$  17,517,236

$  16,955,596














LIABILITIES












     Deposits












       Interest-bearing demand

$   2,888,252

$   2,895,768

$   2,988,086

$   2,927,416

$   2,906,855

$   2,892,010

$   2,906,784

       Savings

4,617,658

4,399,768

4,235,658

3,919,590

3,749,902

4,508,713

3,784,164

       Time

2,980,158

2,813,880

2,611,075

2,446,854

2,393,707

2,897,019

2,263,431

          Total interest-bearing deposits

10,486,068

10,109,416

9,834,819

9,293,860

9,050,464

10,297,742

8,954,379

       Noninterest-bearing

3,144,198

3,169,750

3,368,024

3,493,305

3,663,419

3,156,974

3,808,362

          Total deposits

13,630,266

13,279,166

13,202,843

12,787,165

12,713,883

13,454,716

12,762,741

     Federal funds purchased and securities sold












          under agreements to repurchase

750

4,204

3,586

10,788

21,881

2,477

24,118

     FHLB short-term borrowings

669,111

646,187

554,826

878,199

1,028,207

657,649

976,960

     Other

161,913

146,127

185,221

175,682

132,088

154,020

135,622

          Total short-term borrowings

831,774

796,518

743,633

1,064,669

1,182,176

814,146

1,136,700

     Long-term debt

339,472

342,496

340,321

338,402

341,523

340,984

342,565

       Total borrowed funds

1,171,246

1,139,014

1,083,954

1,403,071

1,523,699

1,155,130

1,479,265

     Accrued interest and other liabilities

645,699

622,479

693,676

607,552

592,708

634,089

603,449

       Total Liabilities

15,447,211

15,040,659

14,980,473

14,797,788

14,830,290

15,243,935

14,845,455














SHAREHOLDERS' EQUITY












     Common stock

1,634,183

1,637,835

1,637,197

1,634,102

1,631,230

1,636,009

1,632,307

     Retained earnings

1,179,827

1,144,447

1,111,786

1,076,515

1,034,092

1,162,137

1,012,057

     Accumulated other comprehensive loss

(341,941)

(319,601)

(406,265)

(358,769)

(330,263)

(330,771)

(334,831)

     Treasury stock, at cost

(191,029)

(197,119)

(198,236)

(198,247)

(197,294)

(194,074)

(199,392)

       Total Shareholders' Equity

2,281,040

2,265,562

2,144,482

2,153,601

2,137,765

2,273,301

2,110,141

       Total Liabilities and Shareholders' Equity

$  17,728,251

$ 17,306,221

$  17,124,955

$  16,951,389

$  16,968,055

$  17,517,236

$  16,955,596















 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)







 Quarterly Averages

Year-to-Date Averages


June 30, 2024

March 31, 2024

June 30, 2023

June 30, 2024

June 30, 2023


Balance

Interest

Yield

Balance

Interest

Yield

Balance

Interest

Yield

Balance

Yield

Balance

Yield

Earning assets

























    Investments:

























      Investment securities

$  3,131,541

$  32,999

4.23 %

$  3,137,665

$  31,388

4.01 %

$  3,560,453

$  35,575

4.01 %

$  3,134,603

4.14 %

$  3,597,678

3.97 %

      Interest-bearing deposits with other banks

599,348

7,960

5.33 %

553,654

7,458

5.40 %

329,584

3,933

4.79 %

576,501

5.39 %

323,837

4.66 %

    Gross loans (1)

11,440,930

211,760

7.42 %

11,066,184

201,840

7.32 %

10,513,505

184,387

7.03 %

11,253,557

7.41 %

10,443,791

6.84 %

       Total earning assets

15,171,819

252,719

6.68 %

14,757,503

240,686

6.54 %

14,403,542

223,895

6.23 %

14,964,661

6.65 %

14,365,306

6.07 %



























Nonearning assets

























    Allowance for credit losses

(147,666)




(143,950)




(145,578)




(145,808)


(141,024)

    Cash and due from banks

174,435




204,119




221,527




189,277


220,133

    Accrued interest and other assets

2,529,663




2,488,549




2,488,564




2,509,106


2,511,181

       Total assets

$ 17,728,251




$ 17,306,221




$ 16,968,055




$ 17,517,236


$ 16,955,596




























Interest-bearing liabilities

























    Deposits:

























      Interest-bearing demand

$  2,888,252

$  14,923

2.07 %

$  2,895,768

$  14,892

2.06 %

$  2,906,855

$    8,351

1.15 %

$  2,892,010

2.08 %

$  2,906,784

1.04 %

      Savings

4,617,658

33,142

2.88 %

4,399,768

29,486

2.69 %

3,749,902

14,055

1.50 %

4,508,713

2.80 %

3,784,164

1.16 %

      Time

2,980,158

34,957

4.70 %

2,813,880

31,697

4.52 %

2,393,707

21,886

3.67 %

2,897,019

4.64 %

2,263,431

3.48 %

    Total interest-bearing deposits

10,486,068

83,022

3.18 %

10,109,416

76,075

3.02 %

9,050,464

44,292

1.96 %

10,297,742

3.12 %

8,954,379

1.71 %

    Borrowed funds

























      Short-term borrowings

831,774

11,395

5.49 %

796,518

10,943

5.51 %

1,182,176

15,536

5.27 %

814,146

5.53 %

1,136,700

5.05 %

      Long-term debt

339,472

4,991

5.90 %

342,496

4,928

5.77 %

341,523

4,835

5.68 %

340,984

5.87 %

342,565

5.71 %

        Total borrowed funds

1,171,246

16,386

5.61 %

1,139,014

15,871

5.59 %

1,523,699

20,371

5.36 %

1,155,130

5.63 %

1,479,265

5.20 %

       Total interest-bearing liabilities

11,657,314

99,408

3.42 %

11,248,430

91,946

3.28 %

10,574,163

64,663

2.45 %

11,452,872

3.37 %

10,433,644

2.20 %



























Noninterest-bearing liabilities

























    Noninterest-bearing demand deposits

3,144,198




3,169,750




3,663,419




3,156,974


3,808,362

    Other liabilities

645,699




622,479




592,708




634,089


603,449

    Shareholders' equity

2,281,040




2,265,562




2,137,765




2,273,301


2,110,141

       Total liabilities & shareholders' equity

$ 17,728,251




$ 17,306,221




$ 16,968,055




$ 17,517,236


$ 16,955,596




























Net interest income

$      153,311




$      148,740




$      159,232




$      302,051


$      318,550

Net interest spread




3.26 %




3.26 %




3.78 %


3.28 %


3.87 %

Net interest margin




4.06 %




4.05 %




4.43 %


4.06 %


4.47 %



























Tax equivalent adjustment




0.04 %




0.05 %




0.05 %


0.04 %


0.04 %

Net interest margin (fully tax equivalent)




4.10 %




4.10 %




4.48 %


4.10 %


4.51 %




















































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

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)

(Dollars in thousands)

(Unaudited)








































 Linked Qtr. Income Variance

 Comparable Qtr. Income Variance

Year-to-Date Income Variance


Rate

Volume

Total

Rate

Volume

Total

Rate

Volume

Total

Earning assets

















    Investment securities

$     1,676

$        (65)

$     1,611

$     1,944

$    (4,520)

$    (2,576)

$     2,993

$    (9,512)

$    (6,519)

    Interest-bearing deposits with other banks

(105)

607

502

444

3,583

4,027

1,184

6,757

7,941

    Gross loans (2)

2,984

6,936

9,920

10,207

17,166

27,373

29,746

29,761

59,507

       Total earning assets

4,555

7,478

12,033

12,595

16,229

28,824

33,923

27,006

60,929



















Interest-bearing liabilities

















    Total interest-bearing deposits

$     3,965

$     2,982

$     6,947

$    27,364

$    11,366

$    38,730

$    62,594

$    20,755

$    83,349

    Borrowed funds

















    Short-term borrowings

(31)

483

452

659

(4,800)

(4,141)

2,702

(8,850)

(6,148)

    Long-term debt

107

(44)

63

186

(30)

156

273

(46)

227

       Total borrowed funds

76

439

515

845

(4,830)

(3,985)

2,975

(8,896)

(5,921)

       Total interest-bearing liabilities

4,041

3,421

7,462

28,209

6,536

34,745

65,569

11,859

77,428

          Net interest income (1)

$        514

$     4,057

$     4,571

$  (15,614)

$     9,693

$    (5,921)

$  (31,646)

$    15,147

$  (16,499)















(1) Not tax equivalent.













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

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)











Six months ended,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

June 30,

2024

2024

2023

2023

2023

2024

2023

ALLOWANCE FOR CREDIT LOSS ACTIVITY









Balance at beginning of period

$  144,274

$  141,433

$  145,201

$  148,646

$  141,591

$ 141,433

$ 132,977

  Provision for credit losses

16,157

13,419

8,804

12,907

12,719

29,576

21,363

  Gross charge-offs












    Commercial and industrial

2,149

2,695

6,866

9,207

2,372

4,844

3,102

    Lease financing

190

3

4,244

76

90

193

103

    Construction real estate

0

0

0

0

0

0

0

    Commercial real estate

2

5,319

1

6,008

2,648

5,321

2,714

    Residential real estate

6

65

9

10

20

71

20

    Home equity

122

25

174

54

21

147

112

    Installment

2,034

2,236

2,054

1,349

1,515

4,270

3,039

    Credit card

532

794

363

319

274

1,326

491

      Total gross charge-offs

5,035

11,137

13,711

17,023

6,940

16,172

9,581

  Recoveries












    Commercial and industrial

236

162

459

335

631

398

740

    Lease financing

1

59

52

1

1

60

2

    Construction real estate

0

0

0

0

0

0

0

    Commercial real estate

137

38

93

39

153

175

2,391

    Residential real estate

37

24

24

44

113

61

179

    Home equity

118

80

178

125

232

198

312

    Installment

219

145

210

87

90

364

144

    Credit card

41

51

123

40

56

92

119

      Total recoveries

789

559

1,139

671

1,276

1,348

3,887

  Total net charge-offs

4,246

10,578

12,572

16,352

5,664

14,824

5,694

Ending allowance for credit losses

$  156,185

$  144,274

$  141,433

$  145,201

$  148,646

$ 156,185

$ 148,646














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









  Commercial and industrial

0.21 %

0.29 %

0.74 %

1.02 %

0.20 %

0.25 %

0.14 %

  Lease financing

0.15 %

(0.05) %

3.97 %

0.08 %

0.11 %

0.05 %

0.07 %

  Construction real estate

0.00 %

0.00 %

0.00 %

0.00 %

0.00 %

0.00 %

0.00 %

  Commercial real estate

(0.01) %

0.52 %

(0.01) %

0.59 %

0.25 %

0.25 %

0.02 %

  Residential real estate

(0.01) %

0.01 %

0.00 %

(0.01) %

(0.03) %

0.00 %

(0.03) %

  Home equity

0.00 %

(0.03) %

0.00 %

(0.04) %

(0.12) %

(0.01) %

(0.06) %

  Installment

4.81 %

5.33 %

4.57 %

3.05 %

3.32 %

5.08 %

3.09 %

  Credit card

2.94 %

4.59 %

1.49 %

1.82 %

1.47 %

3.75 %

1.30 %

     Total net charge-offs

0.15 %

0.38 %

0.46 %

0.61 %

0.22 %

0.27 %

0.11 %














COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

  Nonaccrual loans












    Commercial and industrial

$    17,665

$    14,532

$    15,746

$    17,152

$    21,508

$   17,665

$   21,508

    Lease financing

5,374

3,794

3,610

7,731

4,833

5,374

4,833

    Construction real estate

0

0

0

0

0

0

0

    Commercial real estate

22,942

23,055

27,984

33,019

11,876

22,942

11,876

    Residential real estate

12,715

12,836

14,067

12,328

11,697

12,715

11,697

    Home equity

3,295

4,036

3,476

3,937

3,239

3,295

3,239

    Installment

682

984

870

774

568

682

568

      Total nonaccrual loans

62,673

59,237

65,753

74,941

53,721

62,673

53,721

  Other real estate owned (OREO)

30

161

106

142

281

30

281

     Total nonperforming assets

62,703

59,398

65,859

75,083

54,002

62,703

54,002

  Accruing loans past due 90 days or more

1,573

820

2,028

698

873

1,573

873

     Total underperforming assets

$    64,276

$    60,218

$    67,887

$    75,781

$    54,875

$   64,276

$   54,875

Total classified assets

$  195,277

$  162,348

$  140,995

$  140,552

$  138,909

$ 195,277

$ 138,909














CREDIT QUALITY RATIOS









Allowance for credit losses to












     Nonaccrual loans

249.21 %

243.55 %

215.10 %

193.75 %

276.70 %

249.21 %

276.70 %

     Total ending loans

1.36 %

1.29 %

1.29 %

1.36 %

1.41 %

1.36 %

1.41 %

Nonaccrual loans to total loans

0.54 %

0.53 %

0.60 %

0.70 %

0.51 %

0.54 %

0.51 %

Nonperforming assets to












     Ending loans, plus OREO

0.54 %

0.53 %

0.60 %

0.71 %

0.51 %

0.54 %

0.51 %

     Total assets

0.35 %

0.34 %

0.38 %

0.44 %

0.32 %

0.35 %

0.32 %

Classified assets to total assets

1.07 %

0.92 %

0.80 %

0.82 %

0.81 %

1.07 %

0.81 %

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended,

Six months ended,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

June 30,

2024

2024

2023

2023

2023

2024

2023

PER COMMON SHARE












Market Price












  High

$           23.78

$           23.68

$           24.28

$           24.02

$           22.27

$           23.78

$           26.24

  Low

$           20.79

$           21.04

$           17.37

$           19.19

$           18.20

$           20.79

$           18.20

  Close

$           22.22

$           22.42

$           23.75

$           19.60

$           20.44

$           22.22

$           20.44














Average shares outstanding - basic

94,438,235

94,218,067

94,063,570

94,030,275

93,924,068

94,328,151

93,828,829

Average shares outstanding - diluted

95,470,093

95,183,998

95,126,316

95,126,269

95,169,348

95,327,045

95,065,334

Ending shares outstanding

95,486,010

95,473,595

95,141,244

95,117,180

95,185,483

95,486,010

95,185,483














Total shareholders' equity

$    2,326,439

$    2,287,003

$    2,267,974

$    2,129,509

$    2,143,419

$    2,326,439

$    2,143,419














REGULATORY CAPITAL

Preliminary








Preliminary

Common equity tier 1 capital

$    1,626,345

$    1,582,113

$    1,568,815

$    1,527,793

$    1,481,913

$    1,626,345

$    1,481,913

Common equity tier 1 capital ratio

11.78 %

11.67 %

11.73 %

11.60 %

11.34 %

11.78 %

11.34 %

Tier 1 capital

$    1,671,258

$    1,626,899

$    1,613,480

$    1,572,248

$    1,526,362

$    1,671,258

$    1,526,362

Tier 1 ratio

12.11 %

12.00 %

12.06 %

11.94 %

11.68 %

12.11 %

11.68 %

Total capital

$    1,997,378

$    1,940,762

$    1,907,441

$    1,868,490

$    1,851,144

$    1,997,378

$    1,851,144

Total capital ratio

14.47 %

14.31 %

14.26 %

14.19 %

14.16 %

14.47 %

14.16 %

Total capital in excess of minimum requirement

$       548,037

$       516,704

$       503,152

$       485,580

$       478,911

$       548,037

$       478,911

Total risk-weighted assets

$  13,803,249

$  13,562,455

$  13,374,177

$  13,170,574

$  13,068,888

$  13,803,249

$  13,068,888

Leverage ratio

9.73 %

9.75 %

9.70 %

9.59 %

9.33 %

9.73 %

9.33 %














OTHER CAPITAL RATIOS












Ending shareholders' equity to ending assets

12.81 %

12.99 %

12.94 %

12.49 %

12.54 %

12.81 %

12.54 %

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

7.23 %

7.23 %

7.17 %

6.50 %

6.56 %

7.23 %

6.56 %

Average shareholders' equity to average assets

12.87 %

13.09 %

12.52 %

12.70 %

12.60 %

12.98 %

12.45 %

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

7.15 %

7.25 %

6.57 %

6.69 %

6.57 %

7.20 %

6.39 %














REPURCHASE PROGRAM (2)












Shares repurchased

0

0

0

0

0

0

0

Average share repurchase price

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Total cost of shares repurchased

N/A

N/A

N/A

N/A

N/A

N/A

N/A














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

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




















N/A = Not applicable












 

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SOURCE First Financial Bancorp.

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