0000708955false00007089552024-07-252024-07-250000708955exch:XNMS2024-07-252024-07-25


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): July 25, 2024
 
FIRST FINANCIAL BANCORP.
(Exact name of registrant as specified in its charter)
 
Ohio001-34762 31-1042001
(State or other jurisdiction of
incorporation or organization)		(Commission File Number) (I.R.S. employer
identification number)
255 East Fifth Street, Suite 800Cincinnati,Ohio45202
(Address of principal executive offices)(Zip Code)
 
Registrant's telephone number, including area code: (877) 322-9530
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of exchange on which registered
Common stock, No par valueFFBCThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐


Item 2.02    Results of Operations and Financial Condition.

On July 25, 2024, First Financial Bancorp. (the "Company") issued its earnings press release that included its results of operations and financial condition for the first six months and second quarter of 2024. A copy of the earnings press release is attached as Exhibit 99.1.
The Company also provided electronic presentation slides that will be used in connection with the earnings conference call. A copy of the electronic presentation slides is included in this Report as Exhibit 99.2 and will be available on the Company's website, www.bankatfirst.com.

The information set forth in this Current Report on Form 8-K (including the information in Exhibits 99.1 and 99.2 attached hereto) is being furnished to the Securities and Exchange Commission and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act")    , or otherwise subject to the liabilities under the Exchange Act. Such information shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 
Item 9.01    Financial Statements and Exhibits.

    (d)    Exhibits:
        
The following exhibits shall not be deemed to be "filed" for purposes of the Exchange Act:
    Exhibit No.    Description

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)






SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                        FIRST FINANCIAL BANCORP.

By: /s/ James M. Anderson
James M. Anderson
Executive Vice President and Chief Financial Officer
Date:July 25, 2024

                    




                                                Exhibit 99.1
yellowbara12.jpgbancorplogoa04.jpg
First Financial Bancorp Announces Second Quarter 2024
Financial Results and Quarterly Dividend Increase

•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, Ohio - July 25, 2024. 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.


Contact Information
Investors/Analysts                    Media
Jamie Anderson                        Tim Condron
Chief Financial Officer                    Director of Corporate Communications
(513) 887-5400                        (513) 979-5796
InvestorRelations@bankatfirst.com            media@bankatfirst.com    


contentsheader0215a23.jpg
Selected Financial Information
June 30, 2024
(unaudited)

ContentsPage
Consolidated Financial Highlights2
Consolidated Quarterly Statements of Income3
Consolidated Quarterly Statements of Income4-5
Consolidated Statements of Condition6
Average Consolidated Statements of Condition7
Net Interest Margin Rate / Volume Analysis45,513
Credit Quality10
Capital Adequacy11



    
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,
2024202420232023202320242023
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 assets1.38 %1.18 %1.31 %1.48 %1.55 %1.28 %1.62 %
Return on average shareholders' equity10.72 %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 margin4.06 %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 assets12.81 %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 assets12.87 %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 securities3,131,541 3,137,665 3,184,408 3,394,237 3,560,453 3,134,603 3,597,678 
Interest-bearing deposits with other banks599,348 553,654 548,153 386,173 329,584 576,501 323,837 
  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 deposits10,486,068 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 loans1.36 %1.29 %1.29 %1.36 %1.41 %1.36 %1.41 %
Allowance to nonaccrual loans249.21 %243.55 %215.10 %193.75 %276.70 %249.21 %276.70 %
Nonaccrual loans to total loans0.54 %0.53 %0.60 %0.70 %0.51 %0.54 %0.51 %
Nonperforming assets to ending loans, plus OREO0.54 %0.53 %0.60 %0.71 %0.51 %0.54 %0.51 %
Nonperforming assets to total assets0.35 %0.34 %0.38 %0.44 %0.32 %0.35 %0.32 %
Classified assets to total assets1.07 %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.
2

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,
20242023% Change20242023% Change
Interest income
  Loans and leases, including fees$211,760 $184,387 14.8 %$413,600 $354,093 16.8 %
  Investment securities
     Taxable30,295 32,062 (5.5)%58,591 63,929 (8.3)%
     Tax-exempt2,704 3,513 (23.0)%5,796 6,977 (16.9)%
        Total investment securities interest32,999 35,575 (7.2)%64,387 70,906 (9.2)%
  Other earning assets7,960 3,933 102.4 %15,418 7,477 106.2 %
       Total interest income252,719 223,895 12.9 %493,405 432,476 14.1 %
Interest expense
  Deposits83,022 44,292 87.4 %159,097 75,748 110.0 %
  Short-term borrowings11,395 15,536 (26.7)%22,338 28,486 (21.6)%
  Long-term borrowings4,991 4,835 3.2 %9,919 9,692 2.3 %
      Total interest expense99,408 64,663 53.7 %191,354 113,926 68.0 %
      Net interest income153,311 159,232 (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 losses136,868 148,507 (7.8)%274,448 297,346 (7.7)%
Noninterest income
  Service charges on deposit accounts7,188 6,972 3.1 %14,100 13,486 4.6 %
  Wealth management fees7,172 6,713 6.8 %13,848 13,047 6.1 %
  Bankcard income3,900 3,692 5.6 %7,042 7,284 (3.3)%
  Client derivative fees763 1,827 (58.2)%2,013 2,832 (28.9)%
  Foreign exchange income16,787 15,039 11.6 %27,222 31,937 (14.8)%
  Leasing business income16,828 10,265 63.9 %31,417 23,929 31.3 %
  Net gains from sales of loans4,479 3,839 16.7 %8,263 6,174 33.8 %
  Net gain (loss) on sale of investment securities0 (384)(100.0)%(5,277)(403)1,209.4 %
  Net gain (loss) on equity securities(64)(82)(22.0)%26 58 (55.2)%
  Other4,448 5,377 (17.3)%9,359 10,457 (10.5)%
      Total noninterest income61,501 53,258 15.5 %108,013 108,801 (0.7)%
Noninterest expenses
  Salaries and employee benefits75,225 74,199 1.4 %149,262 146,453 1.9 %
  Net occupancy5,793 5,606 3.3 %11,716 11,291 3.8 %
  Furniture and equipment3,646 3,362 8.4 %7,334 6,679 9.8 %
  Data processing8,877 9,871 (10.1)%17,182 18,891 (9.0)%
  Marketing2,605 2,802 (7.0)%4,567 4,962 (8.0)%
  Communication816 644 26.7 %1,611 1,278 26.1 %
  Professional services2,885 2,308 25.0 %5,153 4,254 21.1 %
  State intangible tax875 964 (9.2)%1,752 1,949 (10.1)%
  FDIC assessments2,657 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 expense10,128 6,730 50.5 %19,882 14,668 35.5 %
  Other7,671 8,722 (12.0)%17,336 16,050 8.0 %
      Total noninterest expenses123,574 120,615 2.5 %245,929 237,308 3.6 %
Income before income taxes74,795 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 assets1.38 %1.55 %1.28 %1.62 %
Return on average shareholders' equity10.72 %12.32 %9.86 %13.00 %
Interest income$252,719 $223,895 12.9 %$493,405 $432,476 14.1 %
Tax equivalent adjustment1,418 1,601 (11.4)%2,953 3,025 (2.4)%
   Interest income - tax equivalent254,137 225,496 12.7 %496,358 435,501 14.0 %
Interest expense99,408 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 margin4.06 %4.43 %4.06 %4.47 %
Net interest margin (fully tax equivalent) (1)
4.10 %4.48 %4.10 %4.51 %
Full-time equivalent employees2,144 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.
3

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2024
SecondFirstYear to% Change
QuarterQuarterDateLinked Qtr.
Interest income
  Loans and leases, including fees$211,760 $201,840 $413,600 4.9 %
  Investment securities
     Taxable30,295 28,296 58,591 7.1 %
     Tax-exempt2,704 3,092 5,796 (12.5)%
        Total investment securities interest32,999 31,388 64,387 5.1 %
  Other earning assets7,960 7,458 15,418 6.7 %
       Total interest income252,719 240,686 493,405 5.0 %
Interest expense
  Deposits83,022 76,075 159,097 9.1 %
  Short-term borrowings11,395 10,943 22,338 4.1 %
  Long-term borrowings4,991 4,928 9,919 1.3 %
      Total interest expense99,408 91,946 191,354 8.1 %
      Net interest income153,311 148,740 302,051 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 losses136,868 137,580 274,448 (0.5)%
Noninterest income
  Service charges on deposit accounts7,188 6,912 14,100 4.0 %
  Wealth management fees7,172 6,676 13,848 7.4 %
  Bankcard income3,900 3,142 7,042 24.1 %
  Client derivative fees763 1,250 2,013 (39.0)%
  Foreign exchange income16,787 10,435 27,222 60.9 %
  Leasing business income16,828 14,589 31,417 15.3 %
  Net gains from sales of loans4,479 3,784 8,263 18.4 %
  Net gain (loss) on sale of investment securities0 (5,277)(5,277)(100.0)%
  Net gain (loss) on equity securities(64)90 26 171.1 %
  Other4,448 4,911 9,359 (9.4)%
      Total noninterest income61,501 46,512 108,013 32.2 %
Noninterest expenses
  Salaries and employee benefits75,225 74,037 149,262 1.6 %
  Net occupancy5,793 5,923 11,716 (2.2)%
  Furniture and equipment3,646 3,688 7,334 (1.1)%
  Data processing8,877 8,305 17,182 6.9 %
  Marketing2,605 1,962 4,567 32.8 %
  Communication816 795 1,611 2.6 %
  Professional services2,885 2,268 5,153 27.2 %
  State intangible tax875 877 1,752 (0.2)%
  FDIC assessments2,657 2,780 5,437 (4.4)%
  Intangible amortization 2,396 2,301 4,697 4.1 %
  Leasing business expense10,128 9,754 19,882 3.8 %
  Other7,671 9,665 17,336 (20.6)%
      Total noninterest expenses123,574 122,355 245,929 1.0 %
Income before income taxes74,795 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 assets1.38 %1.18 %1.28 %
Return on average shareholders' equity10.72 %9.00 %9.86 %
Interest income$252,719 $240,686 $493,405 5.0 %
Tax equivalent adjustment1,418 1,535 2,953 (7.6)%
   Interest income - tax equivalent254,137 242,221 496,358 4.9 %
Interest expense99,408 91,946 191,354 8.1 %
   Net interest income - tax equivalent$154,729 $150,275 $305,004 3.0 %
Net interest margin4.06 %4.05 %4.06 %
Net interest margin (fully tax equivalent) (1)
4.10 %4.10 %4.10 %
Full-time equivalent employees2,144 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.
4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2023
FourthThirdSecondFirstFull
QuarterQuarterQuarterQuarterYear
Interest income
  Loans and leases, including fees$197,416 $192,261 $184,387 $169,706 $743,770 
  Investment securities
     Taxable30,294 31,297 32,062 31,867 125,520 
     Tax-exempt3,402 3,522 3,513 3,464 13,901 
        Total investment securities interest33,696 34,819 35,575 35,331 139,421 
  Other earning assets7,325 5,011 3,933 3,544 19,813 
       Total interest income238,437 232,091 223,895 208,581 903,004 
Interest expense
  Deposits69,193 57,069 44,292 31,456 202,010 
  Short-term borrowings10,277 14,615 15,536 12,950 53,378 
  Long-term borrowings5,202 4,952 4,835 4,857 19,846 
      Total interest expense84,672 76,636 64,663 49,263 275,234 
      Net interest income153,765 155,455 159,232 159,318 627,770 
  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 losses143,535 143,782 148,507 148,839 584,663 
Noninterest income
  Service charges on deposit accounts6,846 6,957 6,972 6,514 27,289 
  Wealth management fees6,091 6,943 6,713 6,334 26,081 
  Bankcard income3,349 3,406 3,692 3,592 14,039 
  Client derivative fees711 1,612 1,827 1,005 5,155 
  Foreign exchange income8,730 13,384 15,039 16,898 54,051 
  Leasing business income12,856 14,537 10,265 13,664 51,322 
  Net gains from sales of loans2,957 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 securities202 (54)(82)140 206 
  Other6,102 5,761 5,377 5,080 22,320 
      Total noninterest income46,993 56,628 53,258 55,543 212,422 
Noninterest expenses
  Salaries and employee benefits70,637 75,641 74,199 72,254 292,731 
  Net occupancy5,890 5,809 5,606 5,685 22,990 
  Furniture and equipment3,523 3,341 3,362 3,317 13,543 
  Data processing8,488 8,473 9,871 9,020 35,852 
  Marketing2,087 2,598 2,802 2,160 9,647 
  Communication707 744 644 634 2,729 
  Professional services3,148 2,524 2,308 1,946 9,926 
  State intangible tax984 981 964 985 3,914 
  FDIC assessments3,651 2,665 2,806 2,826 11,948 
  Intangible amortization 2,601 2,600 2,601 2,600 10,402 
  Leasing business expense8,955 8,877 6,730 7,938 32,500 
  Other8,466 7,791 8,722 7,328 32,307 
      Total noninterest expenses119,137 122,044 120,615 116,693 478,489 
Income before income taxes71,391 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 assets1.31 %1.48 %1.55 %1.69 %1.51 %
Return on average shareholders' equity10.50 %11.62 %12.32 %13.71 %12.01 %
Interest income$238,437 $232,091 $223,895 $208,581 $903,004 
Tax equivalent adjustment1,672 1,659 1,601 1,424 6,356 
   Interest income - tax equivalent240,109 233,750 225,496 210,005 909,360 
Interest expense84,672 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 margin4.21 %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 employees2,129 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.
5

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
June 30,Mar. 31,Dec. 31,Sep. 30,June 30,% Change% Change
20242024202320232023Linked 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 banks738,555 751,290 792,960 452,867 485,241 (1.7)%52.2 %
     Investment securities available-for-sale3,036,758 2,850,667 3,021,126 3,044,361 3,249,404 6.5 %(6.5)%
     Investment securities held-to-maturity78,921 79,542 80,321 81,236 82,372 (0.8)%(4.2)%
     Other investments132,412 125,548 129,945 133,725 141,892 5.5 %(6.7)%
     Loans held for sale16,911 11,534 9,213 12,391 15,267 46.6 %10.8 %
     Loans and leases
       Commercial and industrial3,782,487 3,591,428 3,501,221 3,420,873 3,433,162 5.3 %10.2 %
       Lease financing534,557 492,862 474,817 399,973 360,801 8.5 %48.2 %
       Construction real estate741,406 641,596 564,832 578,824 536,464 15.6 %38.2 %
       Commercial real estate4,076,596 4,145,969 4,080,939 3,992,654 4,048,460 (1.7)%0.7 %
       Residential real estate1,377,290 1,344,677 1,333,674 1,293,470 1,221,484 2.4 %12.8 %
       Home equity800,860 773,811 758,676 743,991 728,711 3.5 %9.9 %
       Installment148,530 153,838 159,078 160,648 165,216 (3.5)%(10.1)%
       Credit card59,477 60,939 59,939 56,386 55,911 (2.4)%6.4 %
          Total loans11,521,203 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 equipment197,873 198,428 194,740 192,572 192,077 (0.3)%3.0 %
     Operating leases167,472 161,473 153,214 136,883 132,272 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 intangibles83,528 85,603 83,949 86,378 88,662 (2.4)%(5.8)%
     Accrued interest and other assets1,147,282 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 %
       Savings4,628,320 4,467,894 4,331,228 4,023,455 3,785,445 3.6 %22.3 %
       Time3,049,635 2,896,860 2,718,390 2,572,909 2,484,780 5.3 %22.7 %
          Total interest-bearing deposits10,600,495 10,281,272 10,042,837 9,476,981 9,189,697 3.1 %15.4 %
       Noninterest-bearing3,061,427 3,175,876 3,317,960 3,438,572 3,605,181 (3.6)%(15.1)%
          Total deposits13,661,922 13,457,148 13,360,797 12,915,553 12,794,878 1.5 %6.8 %
     FHLB short-term borrowings1,040,000 700,000 800,000 755,000 1,050,300 48.6 %(1.0)%
     Other139,172 162,145 137,814 219,188 165,983 (14.2)%(16.2)%
          Total short-term borrowings1,179,172 862,145 937,814 974,188 1,216,283 36.8 %(3.1)%
     Long-term debt338,556 343,236 344,115 340,902 339,963 (1.4)%(0.4)%
          Total borrowed funds1,517,728 1,205,381 1,281,929 1,315,090 1,556,246 25.9 %(2.5)%
     Accrued interest and other liabilities660,091 649,706 622,200 694,700 595,606 1.6 %10.8 %
       Total Liabilities15,839,741 15,312,235 15,264,926 14,925,343 14,946,730 3.4 %6.0 %
SHAREHOLDERS' EQUITY
     Common stock1,635,705 1,632,971 1,638,972 1,636,054 1,632,659 0.2 %0.2 %
     Retained earnings1,204,844 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' Equity2,326,439 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 %

6

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly AveragesYear-to-Date Averages
June 30,Mar. 31,Dec. 31,Sep. 30,June 30,June 30,
2024202420232023202320242023
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 banks599,348 553,654 548,153 386,173 329,584 576,501 323,837 
     Investment securities3,131,541 3,137,665 3,184,408 3,394,237 3,560,453 3,134,603 3,597,678 
     Loans held for sale14,075 12,069 12,547 15,420 11,856 13,072 8,711 
     Loans and leases
       Commercial and industrial3,716,083 3,543,475 3,422,381 3,443,615 3,469,683 3,629,779 3,463,218 
       Lease financing509,758 480,540 419,179 371,598 323,819 495,149 288,217 
       Construction real estate683,780 603,974 540,314 547,884 518,190 643,877 527,192 
       Commercial real estate4,146,764 4,101,238 4,060,733 4,024,798 4,050,946 4,124,001 4,034,077 
       Residential real estate1,361,133 1,336,749 1,320,670 1,260,249 1,181,053 1,348,941 1,148,651 
       Home equity790,384 765,410 750,925 735,251 726,333 777,897 727,254 
       Installment151,753 157,663 160,242 164,092 172,147 154,708 188,947 
       Credit card67,200 65,066 64,037 60,827 59,478 66,133 57,524 
          Total loans11,426,855 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 equipment199,096 198,482 194,435 194,228 190,583 198,789 190,465 
     Operating leases156,457 154,655 139,331 132,984 138,725 155,556 122,996 
     Goodwill 1,007,657 1,006,477 1,005,870 1,005,844 1,005,791 1,007,067 1,005,752 
     Other intangibles84,577 84,109 85,101 87,427 89,878 84,343 91,225 
     Accrued interest and other assets1,081,876 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