- Earnings per diluted share of $0.74; $0.76 on an
adjusted(1) basis, 65% increase YoY
- Return on average assets of 1.69%; 1.72% on an adjusted(1)
basis
- Record quarterly revenue of $214.9
million
- Net interest margin on FTE basis(1) of 4.55%; 8
bp increase from linked quarter
- Loan growth of $134.4 million;
5.3% on an annualized basis
- Record adjusted(1) fee income driven by foreign exchange,
leasing, and wealth management
- Stable credit quality with de minimis net
charge-offs
- Regulatory capital ratios increased and remain in excess of
targets
CINCINNATI, April 20,
2023 /PRNewswire/ -- First Financial Bancorp.
(Nasdaq: FFBC) ("First Financial" or the "Company") announced
financial results for the three months ended March 31, 2023.
For the three months ended March 31,
2023, the Company reported net income of $70.4 million, or $0.74 per diluted common share. These results
compare to net income of $69.1
million, or $0.73 per diluted
common share, for the fourth quarter of 2022.
Return on average assets for the first quarter of 2023 was 1.69%
while return on average tangible common equity was
29.02%(1). These compare to return on average assets of
1.63% and return on average tangible common equity of
29.93%(1) in the fourth quarter of 2022.
First quarter 2023 highlights include:
- Net interest margin of 4.51%, or 4.55% on a fully
tax-equivalent basis(1)
-
- 8 bp increase to 4.55% from 4.47% in the fourth quarter due to
higher asset yields
- Higher loan balances and 62 bp increase in loan yields offset
49 bp increase in cost of deposits
- Average deposit balances increased $179.8 million with growth in brokered and retail
CDs offsetting
declines in public funds and business balances
- Noninterest income of $55.5
million, or $55.4 million as
adjusted(1)
-
- Record leasing business income of $13.7
million; 22.8% increase from fourth quarter
- Foreign exchange income of $16.9
million reflected continued strong demand
- Record trust and wealth management fees of $6.3 million; 12.1% increase from fourth
quarter
- Adjusted(1) for $0.1
million gain on investment securities
- Noninterest expenses of $116.7
million, or $114.6 million as
adjusted(1)
-
- Adjustments(1) include $0.5
million of contract termination costs as well as
$1.6 million of other costs
not expected to recur such as acquisition, severance and branch
consolidation costs
- $7.7 million decline from fourth
quarter driven by lower professional services, tax credit
investment
write-downs, charitable contributions, and incentive costs
- Efficiency ratio of 54.3%; 53.3% as adjusted(1)
(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 consolidated balance sheets at December 31, 2022, September 30, 2022, June
30, 2022, and March 31, 2022
include assets acquired and liabilities assumed in the Summit
Financial transaction. The fair value measurements of assets
acquired and liabilities assumed are subject to refinement for up
to one year after the closing date of the acquisition as additional
information relative to closing date fair values becomes available.
These fair value measurements were considered final as of
December 31, 2022.
- Moderate loan growth during the quarter
-
- Loan balances increased $134.4
million compared to the fourth quarter
- Growth of 5.3% on an annualized basis
- Residential mortgage, C&I, and equipment leases drove
quarterly growth
- Total Allowance for Credit Losses of $161.8 million; Total quarterly provision expense
of $10.5 million
-
- Loans and leases - ACL of $141.6
million; increased 7 bps to 1.36% of total loans
- Unfunded Commitments - ACL of $20.2
million
- Provision expense driven by loan growth, slower prepayment
speeds and economic forecasts
- De minimis net charge-offs during the quarter
- Capital ratios remain solid
-
- Total capital ratio of 13.66%
- Tier 1 common equity increased 17 bps to 11.00%
- Tangible common equity increased 52 bps to 6.47%(1);
8.54%(1) excluding impact from AOCI
- Tangible book value per share of $10.76(1)
Mr. Brown, President and CEO, commented on the quarter, "The
first quarter was a really strong quarter for First Financial and I
am very pleased with our operating performance. The Company
achieved record revenue of $215
million. Net income and total revenue increased 70% and 46%,
respectively, from the same quarter last year, with both increasing
slightly compared to the linked quarter. Our quarterly results were
driven by strong net interest income, moderate loan growth, an 8 bp
increase in our net interest margin, record leasing business
income, another great quarter from Bannockburn and strong
performance from our Yellow Cardinal Wealth Division."
Mr. Brown continued, "We continue to manage the significant
increase in short term rates effectively, and during the first
quarter, the increase in our asset yields exceeded the increase in
total funding costs by 4 bps. Average deposit balances increased
slightly from the linked quarter as increases in brokered and
retail CDs offset outflows in public funds and business deposits,
which were primarily seasonal. The majority of these outflows
occurred in the first two months of the quarter. The deposit beta
from the first quarter of 2022 through the first quarter of 2023
was 21%. From a liquidity standpoint, our loan to deposit ratio was
82%, and we also maintain flexibility through our investment
portfolio, 98% of which was classified as available-for-sale as of
March 31."
Mr. Brown discussed asset quality, "Credit quality remained
stable in the first quarter. Net charge-offs were de minimis and
nonperforming assets declined slightly as a percentage of total
assets from the linked quarter. Additionally, the ACL increased
$8.6 million during the quarter,
driven by loan growth, slower prepayments and changes in economic
forecasts. As a result, the ACL was 1.36% as a percentage of total
loan balances, which was a 7 basis point increase from the coverage
ratio at year-end."
Mr. Brown concluded, "We are very pleased with the strengthening
of our capital ratios this quarter. Our strong profitability and
recent decline in market rates led to a 52-basis point increase in
our tangible common equity ratio. In addition, tangible book value
per share increased 8% to $10.76. The
quarter had its challenges for the industry and there is nearterm
uncertainty regarding the economy. We are extremely pleased with
our results and how we have managed the challenges to date. We
believe we remain well positioned to manage future uncertainty due
to our profitability, net interest margin, ample liquidity, and
strong levels of capital."
Full detail of the Company's first quarter 2023 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, April 21, 2023 at
8:30 a.m. Eastern Time. Members of
the public who would like to listen to the conference call should
dial (833) 470-1428 (U.S. toll free) or (404) 975-4839 (U.S.
local), access code 842558. The number should be dialed five to ten
minutes prior to the start of the conference call. A replay of the
conference call will be available beginning one hour after the
completion of the live call at (866) 813-9403 (U.S. toll free),
(929) 458-6194 (U.S. local) and +44 204 525-0658 (all other
locations), access code 342184. The recording will be available
until May 25, 2023. 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 NonGAAP 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
forwardlooking 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 forwardlooking 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, 2022, 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 March 31,
2023, the Company had $16.9
billion in assets, $10.4
billion in loans, $12.7
billion in deposits and $2.1
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 $3.3
billion in assets under management as of March 31, 2023. The Company operated 130 full
service banking centers as of March 31,
2023, 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,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 70,403
|
|
$ 69,086
|
|
$ 55,705
|
|
$ 51,520
|
|
$ 41,301
|
Net earnings per share
- basic
|
$
0.75
|
|
$
0.74
|
|
$
0.60
|
|
$
0.55
|
|
$
0.44
|
Net earnings per share
- diluted
|
$
0.74
|
|
$
0.73
|
|
$
0.59
|
|
$
0.55
|
|
$
0.44
|
Dividends declared per
share
|
$
0.23
|
|
$
0.23
|
|
$
0.23
|
|
$
0.23
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
KEY FINANCIAL
RATIOS
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.69 %
|
|
1.63 %
|
|
1.35 %
|
|
1.28 %
|
|
1.03 %
|
Return on average
shareholders' equity
|
13.71 %
|
|
13.64 %
|
|
10.58 %
|
|
9.84 %
|
|
7.53 %
|
Return on average
tangible shareholders' equity (1)
|
29.02 %
|
|
29.93 %
|
|
22.29 %
|
|
20.68 %
|
|
14.93 %
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
4.51 %
|
|
4.43 %
|
|
3.93 %
|
|
3.41 %
|
|
3.11 %
|
Net interest margin
(fully tax equivalent) (1)(2)
|
4.55 %
|
|
4.47 %
|
|
3.98 %
|
|
3.45 %
|
|
3.16 %
|
|
|
|
|
|
|
|
|
|
|
Ending shareholders'
equity as a percent of ending assets
|
12.53 %
|
|
12.01 %
|
|
12.00 %
|
|
12.74 %
|
|
13.35 %
|
Ending tangible
shareholders' equity as a percent of:
|
|
|
|
|
|
|
|
|
|
Ending tangible assets
(1)
|
6.47 %
|
|
5.95 %
|
|
5.79 %
|
|
6.40 %
|
|
6.95 %
|
Risk-weighted assets
(1)
|
7.87 %
|
|
7.32 %
|
|
7.21 %
|
|
8.09 %
|
|
8.85 %
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity as a percent of average assets
|
12.29 %
|
|
11.98 %
|
|
12.75 %
|
|
12.97 %
|
|
13.75 %
|
Average tangible
shareholders' equity as a percent of
|
|
|
|
|
|
|
|
|
|
average tangible assets (1)
|
6.21 %
|
|
5.84 %
|
|
6.49 %
|
|
6.62 %
|
|
7.44 %
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
22.29
|
|
$
21.51
|
|
$
21.03
|
|
$
21.90
|
|
$
22.63
|
Tangible book value per
share (1)
|
$
10.76
|
|
$
9.97
|
|
$
9.48
|
|
$
10.27
|
|
$
10.97
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
ratio (3)
|
11.00 %
|
|
10.83 %
|
|
10.82 %
|
|
10.91 %
|
|
10.87 %
|
Tier 1 ratio
(3)
|
11.34 %
|
|
11.17 %
|
|
11.17 %
|
|
11.28 %
|
|
11.24 %
|
Total capital ratio
(3)
|
13.66 %
|
|
13.64 %
|
|
13.73 %
|
|
13.94 %
|
|
13.97 %
|
Leverage ratio
(3)
|
9.03 %
|
|
8.89 %
|
|
8.88 %
|
|
8.76 %
|
|
8.64 %
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET ITEMS
|
|
|
|
|
|
|
|
|
|
Loans
(4)
|
$
10,373,302
|
|
$
10,059,119
|
|
$
9,597,197
|
|
$
9,367,820
|
|
$
9,266,774
|
Investment
securities
|
3,635,317
|
|
3,705,304
|
|
4,003,472
|
|
4,118,287
|
|
4,308,059
|
Interest-bearing
deposits with other banks
|
318,026
|
|
372,054
|
|
317,146
|
|
294,136
|
|
273,763
|
Total earning
assets
|
$
14,326,645
|
|
$
14,136,477
|
|
$
13,917,815
|
|
$
13,780,243
|
|
$
13,848,596
|
Total assets
|
$
16,942,999
|
|
$
16,767,598
|
|
$
16,385,989
|
|
$
16,185,978
|
|
$
16,184,919
|
Noninterest-bearing
deposits
|
$
3,954,915
|
|
$
4,225,192
|
|
$
4,176,242
|
|
$
4,224,842
|
|
$
4,160,175
|
Interest-bearing
deposits
|
8,857,226
|
|
8,407,114
|
|
8,194,781
|
|
8,312,876
|
|
8,623,800
|
Total
deposits
|
$
12,812,141
|
|
$
12,632,306
|
|
$
12,371,023
|
|
$
12,537,718
|
|
$
12,783,975
|
Borrowings
|
$
1,434,338
|
|
$
1,489,088
|
|
$
1,406,718
|
|
$
1,079,596
|
|
$
721,695
|
Shareholders'
equity
|
$
2,082,210
|
|
$
2,009,564
|
|
$
2,089,179
|
|
$
2,099,670
|
|
$
2,225,495
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
Allowance to ending
loans
|
1.36 %
|
|
1.29 %
|
|
1.27 %
|
|
1.25 %
|
|
1.34 %
|
Allowance to nonaccrual
loans
|
409.46 %
|
|
464.58 %
|
|
341.61 %
|
|
302.87 %
|
|
273.09 %
|
Allowance to
nonperforming loans
|
409.46 %
|
|
335.94 %
|
|
262.09 %
|
|
235.08 %
|
|
231.98 %
|
Nonperforming loans to
total loans
|
0.33 %
|
|
0.38 %
|
|
0.48 %
|
|
0.53 %
|
|
0.58 %
|
Nonaccrual loans to
total loans
|
0.33 %
|
|
0.28 %
|
|
0.37 %
|
|
0.41 %
|
|
0.49 %
|
Nonperforming assets to
ending loans, plus OREO
|
0.33 %
|
|
0.39 %
|
|
0.48 %
|
|
0.53 %
|
|
0.58 %
|
Nonperforming assets to
total assets
|
0.21 %
|
|
0.23 %
|
|
0.28 %
|
|
0.31 %
|
|
0.33 %
|
Classified assets to
total assets
|
0.94 %
|
|
0.75 %
|
|
0.69 %
|
|
0.74 %
|
|
0.67 %
|
Net charge-offs to
average loans (annualized)
|
0.00 %
|
|
(0.01) %
|
|
0.07 %
|
|
0.08 %
|
|
0.10 %
|
|
(1) Non-GAAP
measure. For details on the calculation of these non-GAAP
financial measures and a reconciliation to the GAAP financial
measure, see the sections titled "Use of Non-GAAP Financial
Measures" in this release and "Appendix: Non-GAAP to GAAP
Reconciliation" in the accompanying slide presentation.
|
(2) The
tax equivalent adjustment to net interest income recognizes the
income tax savings when comparing taxable and tax-exempt assets and
assumes a 21% tax rate. Management believes that it is a
standard practice in the banking industry to present net interest
margin and net interest income on a fully tax equivalent
basis. Therefore, management believes these measures provide
useful information to investors by allowing them to make peer
comparisons. Management also uses these measures to make peer
comparisons.
|
(3) March 31, 2023 regulatory
capital ratios are preliminary.
|
(4) Includes
loans held for sale.
|
FIRST FINANCIAL
BANCORP.
|
CONSOLIDATED
QUARTERLY STATEMENTS OF INCOME
|
(Dollars in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Full
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Year
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases, including fees
|
$ 169,706
|
|
$ 152,299
|
|
$
122,170
|
|
$
97,091
|
|
$
87,182
|
|
$
458,742
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
31,867
|
|
30,248
|
|
26,331
|
|
23,639
|
|
22,096
|
|
102,314
|
Tax-exempt
|
3,464
|
|
4,105
|
|
5,014
|
|
4,916
|
|
4,431
|
|
18,466
|
Total
investment securities interest
|
35,331
|
|
34,353
|
|
31,345
|
|
28,555
|
|
26,527
|
|
120,780
|
Other earning
assets
|
3,544
|
|
3,262
|
|
1,597
|
|
505
|
|
120
|
|
5,484
|
Total interest
income
|
208,581
|
|
189,914
|
|
155,112
|
|
126,151
|
|
113,829
|
|
585,006
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
31,456
|
|
16,168
|
|
6,386
|
|
2,963
|
|
2,623
|
|
28,140
|
Short-term
borrowings
|
12,950
|
|
11,091
|
|
6,158
|
|
1,566
|
|
317
|
|
19,132
|
Long-term
borrowings
|
4,857
|
|
4,759
|
|
4,676
|
|
4,612
|
|
4,544
|
|
18,591
|
Total interest
expense
|
49,263
|
|
32,018
|
|
17,220
|
|
9,141
|
|
7,484
|
|
65,863
|
Net interest
income
|
159,318
|
|
157,896
|
|
137,892
|
|
117,010
|
|
106,345
|
|
519,143
|
Provision for
credit losses-loans and leases
|
8,644
|
|
8,689
|
|
7,898
|
|
(4,267)
|
|
(5,589)
|
|
6,731
|
Provision for
credit losses-unfunded commitments
|
1,835
|
|
1,341
|
|
386
|
|
3,481
|
|
(226)
|
|
4,982
|
Net interest income
after provision for credit losses
|
148,839
|
|
147,866
|
|
129,608
|
|
117,796
|
|
112,160
|
|
507,430
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts
|
6,514
|
|
6,406
|
|
6,279
|
|
7,648
|
|
7,729
|
|
28,062
|
Trust and wealth
management fees
|
6,334
|
|
5,648
|
|
5,487
|
|
6,311
|
|
6,060
|
|
23,506
|
Bankcard
income
|
3,592
|
|
3,736
|
|
3,484
|
|
3,823
|
|
3,337
|
|
14,380
|
Client
derivative fees
|
1,005
|
|
1,822
|
|
1,447
|
|
1,369
|
|
803
|
|
5,441
|
Foreign exchange
income
|
16,898
|
|
19,592
|
|
11,752
|
|
13,470
|
|
10,151
|
|
54,965
|
Leasing business
income
|
13,664
|
|
11,124
|
|
7,127
|
|
7,247
|
|
6,076
|
|
31,574
|
Net gains from
sales of loans
|
2,335
|
|
2,206
|
|
3,729
|
|
5,241
|
|
3,872
|
|
15,048
|
Net gain (loss)
on sale of investment securities
|
(519)
|
|
(393)
|
|
(179)
|
|
0
|
|
3
|
|
(569)
|
Net gain
(loss) on equity securities
|
640
|
|
1,315
|
|
(701)
|
|
(1,054)
|
|
(199)
|
|
(639)
|
Other
|
5,080
|
|
4,579
|
|
4,109
|
|
5,723
|
|
3,462
|
|
17,873
|
Total noninterest
income
|
55,543
|
|
56,035
|
|
42,534
|
|
49,778
|
|
41,294
|
|
189,641
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
72,254
|
|
73,621
|
|
66,808
|
|
64,992
|
|
63,947
|
|
269,368
|
Net
occupancy
|
5,685
|
|
5,434
|
|
5,669
|
|
5,359
|
|
5,746
|
|
22,208
|
Furniture and
equipment
|
3,317
|
|
3,234
|
|
3,222
|
|
3,201
|
|
3,567
|
|
13,224
|
Data
processing
|
9,020
|
|
8,567
|
|
8,497
|
|
8,334
|
|
8,264
|
|
33,662
|
Marketing
|
2,160
|
|
2,198
|
|
2,523
|
|
2,323
|
|
1,700
|
|
8,744
|
Communication
|
634
|
|
690
|
|
657
|
|
670
|
|
666
|
|
2,683
|
Professional
services
|
1,946
|
|
3,015
|
|
2,346
|
|
2,214
|
|
2,159
|
|
9,734
|
State intangible
tax
|
985
|
|
974
|
|
1,090
|
|
1,090
|
|
1,131
|
|
4,285
|
FDIC
assessments
|
2,826
|
|
2,173
|
|
1,885
|
|
1,677
|
|
1,459
|
|
7,194
|
Intangible
amortization
|
2,600
|
|
2,573
|
|
2,783
|
|
2,915
|
|
2,914
|
|
11,185
|
Leasing business
expense
|
7,938
|
|
6,061
|
|
5,746
|
|
4,687
|
|
3,869
|
|
20,363
|
Other
|
7,328
|
|
15,902
|
|
23,842
|
|
5,572
|
|
7,383
|
|
52,699
|
Total noninterest
expenses
|
116,693
|
|
124,442
|
|
125,068
|
|
103,034
|
|
102,805
|
|
455,349
|
Income before income
taxes
|
87,689
|
|
79,459
|
|
47,074
|
|
64,540
|
|
50,649
|
|
241,722
|
Income tax expense
(benefit)
|
17,286
|
|
10,373
|
|
(8,631)
|
|
13,020
|
|
9,348
|
|
24,110
|
Net income
|
$
70,403
|
|
$
69,086
|
|
$
55,705
|
|
$
51,520
|
|
$
41,301
|
|
$
217,612
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL
DATA
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share
- basic
|
$ 0.75
|
|
$ 0.74
|
|
$ 0.60
|
|
$ 0.55
|
|
$ 0.44
|
|
$ 2.33
|
Net earnings per share
- diluted
|
$ 0.74
|
|
$ 0.73
|
|
$ 0.59
|
|
$ 0.55
|
|
$ 0.44
|
|
$ 2.30
|
Dividends declared per
share
|
$ 0.23
|
|
$ 0.23
|
|
$ 0.23
|
|
$ 0.23
|
|
$ 0.23
|
|
$ 0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.69 %
|
|
1.63 %
|
|
1.35 %
|
|
1.28 %
|
|
1.03 %
|
|
1.33 %
|
Return on average
shareholders' equity
|
13.71 %
|
|
13.64 %
|
|
10.58 %
|
|
9.84 %
|
|
7.53 %
|
|
10.34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$ 208,581
|
|
$ 189,914
|
|
$
155,112
|
|
$
126,151
|
|
$
113,829
|
|
$
585,006
|
Tax equivalent
adjustment
|
1,424
|
|
1,553
|
|
1,712
|
|
1,625
|
|
1,467
|
|
6,357
|
Interest
income - tax equivalent
|
210,005
|
|
191,467
|
|
156,824
|
|
127,776
|
|
115,296
|
|
591,363
|
Interest
expense
|
49,263
|
|
32,018
|
|
17,220
|
|
9,141
|
|
7,484
|
|
65,863
|
Net
interest income - tax equivalent
|
$ 160,742
|
|
$ 159,449
|
|
$
139,604
|
|
$
118,635
|
|
$
107,812
|
|
$
525,500
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
4.51 %
|
|
4.43 %
|
|
3.93 %
|
|
3.41 %
|
|
3.11 %
|
|
3.73 %
|
Net interest margin
(fully tax equivalent) (1)
|
4.55 %
|
|
4.47 %
|
|
3.98 %
|
|
3.45 %
|
|
3.16 %
|
|
3.77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
2,066
|
|
2,070
|
|
2,072
|
|
2,096
|
|
2,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
% Change
|
|
% Change
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Linked Qtr.
|
|
Comp Qtr.
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$ 199,835
|
|
$ 207,501
|
|
$ 195,553
|
|
$ 217,481
|
|
$ 214,571
|
|
(3.7) %
|
|
(6.9) %
|
Interest-bearing deposits
with other banks
|
305,465
|
|
388,182
|
|
338,978
|
|
270,042
|
|
243,004
|
|
(21.3) %
|
|
25.7 %
|
Investment securities
available-for-sale
|
3,384,949
|
|
3,409,648
|
|
3,531,353
|
|
3,843,580
|
|
3,957,882
|
|
(0.7) %
|
|
(14.5) %
|
Investment securities
held-to-maturity
|
83,070
|
|
84,021
|
|
85,823
|
|
88,057
|
|
92,597
|
|
(1.1) %
|
|
(10.3) %
|
Other investments
|
143,606
|
|
143,160
|
|
138,767
|
|
132,151
|
|
114,563
|
|
0.3 %
|
|
25.4 %
|
Loans held for
sale
|
9,280
|
|
7,918
|
|
10,684
|
|
22,044
|
|
12,670
|
|
17.2 %
|
|
(26.8) %
|
Loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
3,449,289
|
|
3,410,272
|
|
3,139,219
|
|
2,927,175
|
|
2,800,209
|
|
1.1 %
|
|
23.2 %
|
Lease
financing
|
273,898
|
|
236,124
|
|
176,072
|
|
146,639
|
|
125,867
|
|
16.0 %
|
|
117.6 %
|
Construction
real estate
|
525,906
|
|
512,050
|
|
489,446
|
|
449,734
|
|
479,744
|
|
2.7 %
|
|
9.6 %
|
Commercial real
estate
|
4,056,627
|
|
4,052,759
|
|
3,976,345
|
|
4,007,037
|
|
4,031,484
|
|
0.1 %
|
|
0.6 %
|
Residential real
estate
|
1,145,069
|
|
1,092,265
|
|
1,024,596
|
|
965,387
|
|
913,838
|
|
4.8 %
|
|
25.3 %
|
Home
equity
|
724,672
|
|
733,791
|
|
737,318
|
|
725,700
|
|
707,973
|
|
(1.2) %
|
|
2.4 %
|
Installment
|
204,372
|
|
209,895
|
|
202,267
|
|
146,680
|
|
132,197
|
|
(2.6) %
|
|
54.6 %
|
Credit
card
|
53,552
|
|
51,815
|
|
52,173
|
|
52,065
|
|
50,305
|
|
3.4 %
|
|
6.5 %
|
Total loans
|
10,433,385
|
|
10,298,971
|
|
9,797,436
|
|
9,420,417
|
|
9,241,617
|
|
1.3 %
|
|
12.9 %
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
|
(141,591)
|
|
(132,977)
|
|
(124,096)
|
|
(117,885)
|
|
(124,130)
|
|
6.5 %
|
|
14.1 %
|
Net loans
|
10,291,794
|
|
10,165,994
|
|
9,673,340
|
|
9,302,532
|
|
9,117,487
|
|
1.2 %
|
|
12.9 %
|
Premises and
equipment
|
188,959
|
|
189,080
|
|
189,067
|
|
191,099
|
|
190,975
|
|
(0.1) %
|
|
(1.1) %
|
Operating leases
|
153,986
|
|
91,738
|
|
84,851
|
|
82,659
|
|
61,927
|
|
67.9 %
|
|
148.7 %
|
Goodwill
|
1,005,738
|
|
1,001,507
|
|
998,422
|
|
999,959
|
|
999,959
|
|
0.4 %
|
|
0.6 %
|
Other intangibles
|
91,169
|
|
93,919
|
|
96,528
|
|
99,019
|
|
101,673
|
|
(2.9) %
|
|
(10.3) %
|
Accrued interest and other
assets
|
1,076,033
|
|
1,220,648
|
|
1,280,427
|
|
995,091
|
|
901,842
|
|
(11.8) %
|
|
19.3 %
|
Total
Assets
|
$
16,933,884
|
|
$ 17,003,316
|
|
$
16,623,793
|
|
$ 16,243,714
|
|
$
16,009,150
|
|
(0.4) %
|
|
5.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
$
2,761,811
|
|
$
3,037,153
|
|
$
2,980,465
|
|
$
3,096,365
|
|
$
3,246,646
|
|
(9.1) %
|
|
(14.9) %
|
Savings
|
3,746,403
|
|
3,828,139
|
|
3,980,020
|
|
4,029,717
|
|
4,188,867
|
|
(2.1) %
|
|
(10.6) %
|
Time
|
2,336,368
|
|
1,700,705
|
|
1,242,412
|
|
1,026,918
|
|
1,121,966
|
|
37.4 %
|
|
108.2 %
|
Total interest-bearing deposits
|
8,844,582
|
|
8,565,997
|
|
8,202,897
|
|
8,153,000
|
|
8,557,479
|
|
3.3 %
|
|
3.4 %
|
Noninterest-bearing
|
3,830,102
|
|
4,135,180
|
|
4,137,038
|
|
4,124,111
|
|
4,261,429
|
|
(7.4) %
|
|
(10.1) %
|
Total deposits
|
12,674,684
|
|
12,701,177
|
|
12,339,935
|
|
12,277,111
|
|
12,818,908
|
|
(0.2) %
|
|
(1.1) %
|
Federal funds purchased and
securities sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
under agreements to repurchase
|
0
|
|
0
|
|
3,535
|
|
0
|
|
0
|
|
0.0 %
|
|
0.0 %
|
FHLB short-term
borrowings
|
1,089,400
|
|
1,130,000
|
|
972,600
|
|
896,000
|
|
185,000
|
|
(3.6) %
|
|
488.9 %
|
Other
|
128,160
|
|
157,156
|
|
184,912
|
|
152,226
|
|
57,247
|
|
(18.5) %
|
|
123.9 %
|
Total short-term borrowings
|
1,217,560
|
|
1,287,156
|
|
1,161,047
|
|
1,048,226
|
|
242,247
|
|
(5.4) %
|
|
402.6 %
|
Long-term debt
|
342,647
|
|
346,672
|
|
355,116
|
|
358,578
|
|
379,840
|
|
(1.2) %
|
|
(9.8) %
|
Total borrowed funds
|
1,560,207
|
|
1,633,828
|
|
1,516,163
|
|
1,406,804
|
|
622,087
|
|
(4.5) %
|
|
150.8 %
|
Accrued interest and other
liabilities
|
577,497
|
|
626,938
|
|
773,563
|
|
491,129
|
|
430,710
|
|
(7.9) %
|
|
34.1 %
|
Total
Liabilities
|
14,812,388
|
|
14,961,943
|
|
14,629,661
|
|
14,175,044
|
|
13,871,705
|
|
(1.0) %
|
|
6.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
1,629,428
|
|
1,634,605
|
|
1,631,696
|
|
1,637,237
|
|
1,634,903
|
|
(0.3) %
|
|
(0.3) %
|
Retained earnings
|
1,016,893
|
|
968,237
|
|
920,943
|
|
887,006
|
|
857,178
|
|
5.0 %
|
|
18.6 %
|
Accumulated other
comprehensive income (loss)
|
(328,059)
|
|
(358,663)
|
|
(354,570)
|
|
(243,328)
|
|
(142,477)
|
|
(8.5) %
|
|
130.3 %
|
Treasury stock, at
cost
|
(196,766)
|
|
(202,806)
|
|
(203,937)
|
|
(212,245)
|
|
(212,159)
|
|
(3.0) %
|
|
(7.3) %
|
Total
Shareholders' Equity
|
2,121,496
|
|
2,041,373
|
|
1,994,132
|
|
2,068,670
|
|
2,137,445
|
|
3.9 %
|
|
(0.7) %
|
Total
Liabilities and Shareholders' Equity
|
$
16,933,884
|
|
$ 17,003,316
|
|
$
16,623,793
|
|
$ 16,243,714
|
|
$
16,009,150
|
|
(0.4) %
|
|
5.8 %
|
FIRST FINANCIAL
BANCORP.
|
AVERAGE CONSOLIDATED
STATEMENTS OF CONDITION
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
|
Quarterly
Averages
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$ 218,724
|
|
$ 218,216
|
|
$ 228,068
|
|
$ 248,463
|
|
$ 241,271
|
Interest-bearing deposits
with other banks
|
318,026
|
|
372,054
|
|
317,146
|
|
294,136
|
|
273,763
|
Investment
securities
|
3,635,317
|
|
3,705,304
|
|
4,003,472
|
|
4,118,287
|
|
4,308,059
|
Loans held for
sale
|
5,531
|
|
8,639
|
|
12,283
|
|
15,446
|
|
15,589
|
Loans and leases
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
3,456,681
|
|
3,249,252
|
|
3,040,547
|
|
2,884,373
|
|
2,736,613
|
Lease
financing
|
252,219
|
|
203,790
|
|
158,667
|
|
134,334
|
|
115,703
|
Construction
real estate
|
536,294
|
|
501,787
|
|
469,489
|
|
460,609
|
|
474,278
|
Commercial real
estate
|
4,017,021
|
|
4,028,944
|
|
3,969,935
|
|
4,025,493
|
|
4,139,072
|
Residential real
estate
|
1,115,889
|
|
1,066,859
|
|
998,476
|
|
936,165
|
|
903,567
|
Home
equity
|
728,185
|
|
735,039
|
|
728,791
|
|
716,219
|
|
703,714
|
Installment
|
205,934
|
|
208,484
|
|
164,063
|
|
140,145
|
|
125,579
|
Credit
card
|
55,548
|
|
56,325
|
|
54,946
|
|
55,036
|
|
52,659
|
Total loans
|
10,367,771
|
|
10,050,480
|
|
9,584,914
|
|
9,352,374
|
|
9,251,185
|
Less:
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
|
(136,419)
|
|
(127,541)
|
|
(119,000)
|
|
(123,950)
|
|
(129,601)
|
Net loans
|
10,231,352
|
|
9,922,939
|
|
9,465,914
|
|
9,228,424
|
|
9,121,584
|
Premises and
equipment
|
190,346
|
|
189,342
|
|
190,738
|
|
191,895
|
|
192,832
|
Operating leases
|
107,092
|
|
88,365
|
|
83,970
|
|
73,862
|
|
61,297
|
Goodwill
|
1,005,713
|
|
998,575
|
|
999,690
|
|
999,958
|
|
1,000,238
|
Other intangibles
|
92,587
|
|
95,256
|
|
97,781
|
|
100,354
|
|
103,033
|
Accrued interest and other
assets
|
1,138,311
|
|
1,168,908
|
|
986,927
|
|
915,153
|
|
867,253
|
Total
Assets
|
$
16,942,999
|
|
$ 16,767,598
|
|
$
16,385,989
|
|
$
16,185,978
|
|
$
16,184,919
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
$
2,906,712
|
|
$
3,103,091
|
|
$
3,105,547
|
|
$
3,180,846
|
|
$
3,246,919
|
Savings
|
3,818,807
|
|
3,943,342
|
|
4,036,565
|
|
4,076,380
|
|
4,145,615
|
Time
|
2,131,707
|
|
1,360,681
|
|
1,052,669
|
|
1,055,650
|
|
1,231,266
|
Total interest-bearing deposits
|
8,857,226
|
|
8,407,114
|
|
8,194,781
|
|
8,312,876
|
|
8,623,800
|
Noninterest-bearing
|
3,954,915
|
|
4,225,192
|
|
4,176,242
|
|
4,224,842
|
|
4,160,175
|
Total deposits
|
12,812,141
|
|
12,632,306
|
|
12,371,023
|
|
12,537,718
|
|
12,783,975
|
Federal funds purchased and
securities sold
|
|
|
|
|
|
|
|
|
|
under agreements to repurchase
|
26,380
|
|
16,167
|
|
32,637
|
|
24,229
|
|
45,358
|
FHLB short-term
borrowings
|
925,144
|
|
944,320
|
|
892,786
|
|
586,846
|
|
257,800
|
Other
|
139,195
|
|
184,439
|
|
131,237
|
|
109,353
|
|
33,297
|
Total short-term borrowings
|
1,090,719
|
|
1,144,926
|
|
1,056,660
|
|
720,428
|
|
336,455
|
Long-term debt
|
343,619
|
|
344,162
|
|
350,058
|
|
359,168
|
|
385,240
|
Total borrowed
funds
|
1,434,338
|
|
1,489,088
|
|
1,406,718
|
|
1,079,596
|
|
721,695
|
Accrued interest and other
liabilities
|
614,310
|
|
636,640
|
|
519,069
|
|
468,994
|
|
453,754
|
Total
Liabilities
|
14,860,789
|
|
14,758,034
|
|
14,296,810
|
|
14,086,308
|
|
13,959,424
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Common stock
|
1,633,396
|
|
1,632,941
|
|
1,631,078
|
|
1,635,990
|
|
1,638,321
|
Retained earnings
|
989,777
|
|
941,987
|
|
899,524
|
|
866,910
|
|
841,652
|
Accumulated other
comprehensive loss
|
(339,450)
|
|
(361,284)
|
|
(236,566)
|
|
(190,949)
|
|
(38,448)
|
Treasury stock, at
cost
|
(201,513)
|
|
(204,080)
|
|
(204,857)
|
|
(212,281)
|
|
(216,030)
|
Total
Shareholders' Equity
|
2,082,210
|
|
2,009,564
|
|
2,089,179
|
|
2,099,670
|
|
2,225,495
|
Total
Liabilities and Shareholders' Equity
|
$
16,942,999
|
|
$ 16,767,598
|
|
$
16,385,989
|
|
$
16,185,978
|
|
$
16,184,919
|
FIRST FINANCIAL
BANCORP.
|
NET INTEREST MARGIN
RATE/VOLUME ANALYSIS
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
Quarterly
Averages
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
|
|
Balance
|
|
Interest
|
|
Yield
|
|
Balance
|
|
Interest
|
|
Yield
|
|
Balance
|
|
Interest
|
|
Yield
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
$ 3,635,317
|
|
$
35,331
|
|
3.94 %
|
|
$
3,705,304
|
|
$ 34,353
|
|
3.68 %
|
|
$
4,308,059
|
|
$ 26,527
|
|
2.50 %
|
Interest-bearing
deposits with other banks
|
|
318,026
|
|
3,544
|
|
4.52 %
|
|
372,054
|
|
3,262
|
|
3.48 %
|
|
273,763
|
|
120
|
|
0.18 %
|
Gross loans (1)
|
|
10,373,302
|
|
169,706
|
|
6.63 %
|
|
10,059,119
|
|
152,299
|
|
6.01 %
|
|
9,266,774
|
|
87,182
|
|
3.82 %
|
Total earning
assets
|
|
14,326,645
|
|
208,581
|
|
5.90 %
|
|
14,136,477
|
|
189,914
|
|
5.33 %
|
|
13,848,596
|
|
113,829
|
|
3.33 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
|
|
(136,419)
|
|
|
|
|
|
(127,541)
|
|
|
|
|
|
(129,601)
|
|
|
|
|
Cash
and due from banks
|
|
218,724
|
|
|
|
|
|
218,216
|
|
|
|
|
|
241,271
|
|
|
|
|
Accrued interest and other assets
|
|
2,534,049
|
|
|
|
|
|
2,540,446
|
|
|
|
|
|
2,224,653
|
|
|
|
|
Total
assets
|
|
$
16,942,999
|
|
|
|
|
|
$ 16,767,598
|
|
|
|
|
|
$ 16,184,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
$ 2,906,712
|
|
$
6,604
|
|
0.92 %
|
|
$
3,103,091
|
|
$
5,195
|
|
0.66 %
|
|
$
3,246,919
|
|
$
492
|
|
0.06 %
|
Savings
|
|
3,818,807
|
|
7,628
|
|
0.81 %
|
|
3,943,342
|
|
4,819
|
|
0.48 %
|
|
4,145,615
|
|
850
|
|
0.08 %
|
Time
|
|
2,131,707
|
|
17,224
|
|
3.28 %
|
|
1,360,681
|
|
6,154
|
|
1.79 %
|
|
1,231,266
|
|
1,281
|
|
0.42 %
|
Total interest-bearing deposits
|
|
8,857,226
|
|
31,456
|
|
1.44 %
|
|
8,407,114
|
|
16,168
|
|
0.76 %
|
|
8,623,800
|
|
2,623
|
|
0.12 %
|
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
1,090,719
|
|
12,950
|
|
4.82 %
|
|
1,144,926
|
|
11,091
|
|
3.84 %
|
|
336,455
|
|
317
|
|
0.38 %
|
Long-term
debt
|
|
343,619
|
|
4,857
|
|
5.73 %
|
|
344,162
|
|
4,759
|
|
5.49 %
|
|
385,240
|
|
4,544
|
|
4.78 %
|
Total
borrowed funds
|
|
1,434,338
|
|
17,807
|
|
5.03 %
|
|
1,489,088
|
|
15,850
|
|
4.22 %
|
|
721,695
|
|
4,861
|
|
2.73 %
|
Total
interest-bearing liabilities
|
|
10,291,564
|
|
49,263
|
|
1.94 %
|
|
9,896,202
|
|
32,018
|
|
1.28 %
|
|
9,345,495
|
|
7,484
|
|
0.32 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
3,954,915
|
|
|
|
|
|
4,225,192
|
|
|
|
|
|
4,160,175
|
|
|
|
|
Other liabilities
|
|
614,310
|
|
|
|
|
|
636,640
|
|
|
|
|
|
453,754
|
|
|
|
|
Shareholders' equity
|
|
2,082,210
|
|
|
|
|
|
2,009,564
|
|
|
|
|
|
2,225,495
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
16,942,999
|
|
|
|
|
|
$ 16,767,598
|
|
|
|
|
|
$ 16,184,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
159,318
|
|
|
|
|
|
$ 157,896
|
|
|
|
|
|
$ 106,345
|
|
|
|
|
Net interest
spread
|
|
|
|
|
|
3.96 %
|
|
|
|
|
|
4.05 %
|
|
|
|
|
|
3.01 %
|
Net interest
margin
|
|
|
|
|
|
4.51 %
|
|
|
|
|
|
4.43 %
|
|
|
|
|
|
3.11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
0.04 %
|
|
|
|
|
|
0.04 %
|
|
|
|
|
|
0.05 %
|
Net interest margin
(fully tax equivalent)
|
|
|
|
|
|
4.55 %
|
|
|
|
|
|
4.47 %
|
|
|
|
|
|
3.16 %
|
|
(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
|
|
|
Rate
|
|
Volume
|
|
Total
|
|
Rate
|
|
Volume
|
|
Total
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$ 2,458
|
|
$
(1,480)
|
|
$
978
|
|
$
15,342
|
|
$
(6,538)
|
|
$ 8,804
|
Interest-bearing deposits with other banks
|
|
976
|
|
(694)
|
|
282
|
|
2,931
|
|
493
|
|
3,424
|
Gross loans (2)
|
|
15,924
|
|
1,483
|
|
17,407
|
|
64,421
|
|
18,103
|
|
82,524
|
Total earning
assets
|
|
19,358
|
|
(691)
|
|
18,667
|
|
82,694
|
|
12,058
|
|
94,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits
|
|
$
14,353
|
|
$
935
|
|
$
15,288
|
|
$
28,004
|
|
$
829
|
|
$
28,833
|
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
2,805
|
|
(946)
|
|
1,859
|
|
3,678
|
|
8,955
|
|
12,633
|
Long-term debt
|
|
214
|
|
(116)
|
|
98
|
|
901
|
|
(588)
|
|
313
|
Total borrowed
funds
|
|
3,019
|
|
(1,062)
|
|
1,957
|
|
4,579
|
|
8,367
|
|
12,946
|
Total
interest-bearing liabilities
|
|
17,372
|
|
(127)
|
|
17,245
|
|
32,583
|
|
9,196
|
|
41,779
|
Net interest income (1)
|
|
$ 1,986
|
|
$
(564)
|
|
$ 1,422
|
|
$
50,111
|
|
$ 2,862
|
|
$
52,973
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
ALLOWANCE FOR CREDIT
LOSS ACTIVITY
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
132,977
|
|
$
124,096
|
|
$
117,885
|
|
$
124,130
|
|
$
131,992
|
Provision for
credit losses
|
8,644
|
|
8,689
|
|
7,898
|
|
(4,267)
|
|
(5,589)
|
Gross
charge-offs
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
730
|
|
334
|
|
1,947
|
|
773
|
|
2,845
|
Lease financing
|
13
|
|
0
|
|
13
|
|
8
|
|
131
|
Construction real estate
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Commercial real estate
|
66
|
|
245
|
|
3
|
|
3,419
|
|
0
|
Residential real estate
|
0
|
|
79
|
|
119
|
|
4
|
|
22
|
Home
equity
|
91
|
|
72
|
|
45
|
|
22
|
|
21
|
Installment
|
1,524
|
|
717
|
|
294
|
|
361
|
|
177
|
Credit card
|
217
|
|
212
|
|
237
|
|
212
|
|
246
|
Total gross
charge-offs
|
2,641
|
|
1,659
|
|
2,658
|
|
4,799
|
|
3,442
|
Recoveries
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
109
|
|
293
|
|
90
|
|
177
|
|
379
|
Lease financing
|
1
|
|
0
|
|
13
|
|
3
|
|
33
|
Construction real estate
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Commercial real estate
|
2,238
|
|
1,327
|
|
561
|
|
2,194
|
|
222
|
Residential real estate
|
66
|
|
15
|
|
35
|
|
34
|
|
90
|
Home
equity
|
80
|
|
88
|
|
185
|
|
360
|
|
265
|
Installment
|
54
|
|
68
|
|
29
|
|
47
|
|
21
|
Credit card
|
63
|
|
60
|
|
58
|
|
6
|
|
159
|
Total
recoveries
|
2,611
|
|
1,851
|
|
971
|
|
2,821
|
|
1,169
|
Total net
charge-offs
|
30
|
|
(192)
|
|
1,687
|
|
1,978
|
|
2,273
|
Ending allowance for
credit losses
|
$
141,591
|
|
$
132,977
|
|
$
124,096
|
|
$
117,885
|
|
$
124,130
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFFS TO
AVERAGE LOANS AND LEASES (ANNUALIZED)
|
|
|
|
|
|
|
Commercial and
industrial
|
0.07 %
|
|
0.01 %
|
|
0.24 %
|
|
0.08 %
|
|
0.37 %
|
Lease
financing
|
0.02 %
|
|
0.00 %
|
|
0.00 %
|
|
0.01 %
|
|
0.34 %
|
Construction
real estate
|
0.00 %
|
|
0.00 %
|
|
0.00 %
|
|
0.00 %
|
|
0.00 %
|
Commercial real
estate
|
(0.22) %
|
|
(0.11) %
|
|
(0.06) %
|
|
0.12 %
|
|
(0.02) %
|
Residential real
estate
|
(0.02) %
|
|
0.02 %
|
|
0.03 %
|
|
(0.01) %
|
|
(0.03) %
|
Home
equity
|
0.01 %
|
|
(0.01) %
|
|
(0.08) %
|
|
(0.19) %
|
|
(0.14) %
|
Installment
|
2.89 %
|
|
1.24 %
|
|
0.64 %
|
|
0.90 %
|
|
0.50 %
|
Credit
card
|
1.12 %
|
|
1.07 %
|
|
1.29 %
|
|
1.50 %
|
|
0.67 %
|
Total net
charge-offs
|
0.00 %
|
|
(0.01) %
|
|
0.07 %
|
|
0.08 %
|
|
0.10 %
|
|
|
|
|
|
|
|
|
|
|
COMPONENTS OF
NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING
ASSETS
|
Nonaccrual loans
(1)
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
$
13,971
|
|
$ 8,242
|
|
$ 8,719
|
|
$
11,675
|
|
$
14,390
|
Lease financing
|
175
|
|
178
|
|
199
|
|
217
|
|
249
|
Construction real estate
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Commercial real estate
|
5,362
|
|
5,786
|
|
13,435
|
|
14,650
|
|
19,843
|
Residential real estate
|
11,129
|
|
10,691
|
|
10,250
|
|
8,879
|
|
7,432
|
Home
equity
|
3,399
|
|
3,123
|
|
3,445
|
|
3,331
|
|
3,377
|
Installment
|
544
|
|
603
|
|
279
|
|
170
|
|
163
|
Nonaccrual
loans
|
34,580
|
|
28,623
|
|
36,327
|
|
38,922
|
|
45,454
|
Accruing
troubled debt restructurings (TDRs) (2)
|
N/A
|
|
10,960
|
|
11,022
|
|
11,225
|
|
8,055
|
Total nonperforming loans
(2)
|
34,580
|
|
39,583
|
|
47,349
|
|
50,147
|
|
53,509
|
Other real
estate owned (OREO)
|
191
|
|
191
|
|
22
|
|
22
|
|
72
|
Total nonperforming assets
(2)
|
34,771
|
|
39,774
|
|
47,371
|
|
50,169
|
|
53,581
|
Accruing loans
past due 90 days or more
|
159
|
|
857
|
|
139
|
|
142
|
|
180
|
Total underperforming assets
(2)
|
$
34,930
|
|
$
40,631
|
|
$
47,510
|
|
$
50,311
|
|
$
53,761
|
Total classified assets
(2)
|
$
158,984
|
|
$
128,137
|
|
$
114,956
|
|
$
119,769
|
|
$
106,839
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
RATIOS
|
|
|
|
|
|
|
Allowance for credit
losses to
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
409.46 %
|
|
464.58 %
|
|
341.61 %
|
|
302.87 %
|
|
273.09 %
|
Nonperforming
loans
|
409.46 %
|
|
335.94 %
|
|
262.09 %
|
|
235.08 %
|
|
231.98 %
|
Total ending
loans
|
1.36 %
|
|
1.29 %
|
|
1.27 %
|
|
1.25 %
|
|
1.34 %
|
Nonperforming loans to
total loans
|
0.33 %
|
|
0.38 %
|
|
0.48 %
|
|
0.53 %
|
|
0.58 %
|
Nonaccrual loans to
total loans
|
0.33 %
|
|
0.28 %
|
|
0.37 %
|
|
0.41 %
|
|
0.49 %
|
Nonperforming assets
to
|
|
|
|
|
|
|
|
|
|
Ending loans, plus
OREO
|
0.33 %
|
|
0.39 %
|
|
0.48 %
|
|
0.53 %
|
|
0.58 %
|
Total assets
|
0.21 %
|
|
0.23 %
|
|
0.28 %
|
|
0.31 %
|
|
0.33 %
|
Nonperforming assets,
excluding accruing TDRs to
|
|
|
|
|
|
|
|
|
|
Ending loans, plus
OREO
|
0.33 %
|
|
0.28 %
|
|
0.37 %
|
|
0.41 %
|
|
0.49 %
|
Total assets
|
0.21 %
|
|
0.17 %
|
|
0.22 %
|
|
0.24 %
|
|
0.28 %
|
Classified assets to
total assets
|
0.94 %
|
|
0.75 %
|
|
0.69 %
|
|
0.74 %
|
|
0.67 %
|
|
|
|
|
|
|
|
|
|
|
(1)
Nonaccrual loans include nonaccrual TDRs of $10.0 million, $12.8
million, $9.5 million, and $16.2 million, as of December 31, 2022,
September 30, 2022, June 30, 2022, and March 31, 2022,
respectively.
|
(2) Upon
adoption of ASU 2022-02 as of January 1, 2023, the TDR model was
eliminated. Prospectively, disclosures will include
modifcations of loans to borrowers experiencing financial
difficulty (FDM). FDMs are excluded from nonperforming,
underperforming and classified assets.
|
FIRST FINANCIAL
BANCORP.
|
CAPITAL
ADEQUACY
|
(Dollars in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
Market Price
|
|
|
|
|
|
|
|
|
|
High
|
$
26.24
|
|
$
26.68
|
|
$
23.75
|
|
$
23.03
|
|
$
26.73
|
Low
|
$
21.30
|
|
$
21.56
|
|
$
19.02
|
|
$
19.09
|
|
$
22.92
|
Close
|
$
21.77
|
|
$
24.23
|
|
$
21.08
|
|
$
19.40
|
|
$
23.05
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding - basic
|
93,732,532
|
|
93,590,674
|
|
93,582,250
|
|
93,555,131
|
|
93,383,932
|
Average shares
outstanding - diluted
|
94,960,158
|
|
94,831,788
|
|
94,793,766
|
|
94,449,817
|
|
94,263,925
|
Ending shares
outstanding
|
95,190,406
|
|
94,891,099
|
|
94,833,964
|
|
94,448,792
|
|
94,451,496
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
2,121,496
|
|
$
2,041,373
|
|
$
1,994,132
|
|
$
2,068,670
|
|
$
2,137,445
|
|
|
|
|
|
|
|
|
|
|
REGULATORY
CAPITAL
|
Preliminary
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
$
1,432,332
|
|
$
1,399,420
|
|
$
1,348,413
|
|
$
1,307,259
|
|
$
1,272,115
|
Common equity tier 1
capital ratio
|
11.00 %
|
|
10.83 %
|
|
10.82 %
|
|
10.91 %
|
|
10.87 %
|
Tier 1
capital
|
$
1,476,734
|
|
$
1,443,698
|
|
$
1,392,565
|
|
$
1,351,287
|
|
$
1,316,020
|
Tier 1 ratio
|
11.34 %
|
|
11.17 %
|
|
11.17 %
|
|
11.28 %
|
|
11.24 %
|
Total
capital
|
$
1,778,917
|
|
$
1,762,971
|
|
$
1,711,741
|
|
$
1,670,367
|
|
$
1,635,003
|
Total capital
ratio
|
13.66 %
|
|
13.64 %
|
|
13.73 %
|
|
13.94 %
|
|
13.97 %
|
Total capital in excess
of minimum requirement
|
$
411,234
|
|
$
406,032
|
|
$
402,662
|
|
$
412,167
|
|
$
405,931
|
Total risk-weighted
assets
|
$
13,025,552
|
|
$
12,923,233
|
|
$
12,467,422
|
|
$
11,982,860
|
|
$
11,705,447
|
Leverage
ratio
|
9.03 %
|
|
8.89 %
|
|
8.88 %
|
|
8.76 %
|
|
8.64 %
|
|
|
|
|
|
|
|
|
|
|
OTHER CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
Ending shareholders'
equity to ending assets
|
12.53 %
|
|
12.01 %
|
|
12.00 %
|
|
12.74 %
|
|
13.35 %
|
Ending tangible
shareholders' equity to ending tangible assets
(1)
|
6.47 %
|
|
5.95 %
|
|
5.79 %
|
|
6.40 %
|
|
6.95 %
|
Average shareholders'
equity to average assets
|
12.29 %
|
|
11.98 %
|
|
12.75 %
|
|
12.97 %
|
|
13.75 %
|
Average tangible
shareholders' equity to average tangible assets
(1)
|
6.21 %
|
|
5.84 %
|
|
6.49 %
|
|
6.62 %
|
|
7.44 %
|
|
|
|
|
|
|
|
|
|
|
REPURCHASE PROGRAM
(2)
|
|
|
|
|
|
|
|
|
|
Shares
repurchased
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Average share
repurchase price
|
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
|
|
|
|
|
|
|
|
|
|
|
(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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content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-first-quarter-2023-financial-results-301803569.html
SOURCE First Financial Bancorp.