First Financial Bancorp Announces First Quarter 2022 Financial Results

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April 21, 2022 4:15 PM EDT
  • Earnings per diluted share of $0.44; $0.46 on an adjusted(1) basis
  • Return on average assets of 1.03%; 1.09% on an adjusted(1) basis
  • Net interest margin on FTE basis of 3.17%; 12 bp increase excluding loan fees and accretion
  • Net charge-offs declined 69.3%; Provision recapture of $5.8 million

CINCINNATI, April 21, 2022 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2022. 

For the three months ended March 31, 2022, the Company reported net income of $41.3 million, or $0.44 per diluted common share.  These results compare to net income of $46.9 million, or $0.50 per diluted common share, for the fourth quarter of 2021 and $47.3 million, or $0.48 per diluted common share, for the first quarter of 2021. 

Return on average assets for the first quarter of 2022 was 1.03% while return on average tangible common equity was 14.93%(1).  These compare to returns on average assets of 1.16% and 1.20%, and returns on average tangible common equity of 15.11%(1) and 15.24%(1), in the fourth quarter of 2021 and the first quarter of 2021, respectively.

First quarter 2022 highlights include:

  • Loan balances flat when compared to linked quarter2, excluding impact of PPP
    • Loan balances decreased $46.7 million compared to the linked quarter; PPP loan balances decreased $34.4 million
  • Net interest margin of 3.17% on a fully tax-equivalent basis(1), exceeded expectations
    • 6 basis point decrease to 3.17% from 3.23% in the linked quarter driven by PPP forgiveness and lower loan fees, which offset increase in asset yields during the period
    • 12 basis point increase excluding loan fees and accretion
  • Noninterest income of $41.3 million, or $41.5 million as adjusted(1)
    • Leasing business income of $6.1 million
    • Wealth management fees remained strong at $6.1 million
    • Foreign exchange income of $10.2 million; decline from record fourth quarter
    • Mortgage banking revenue declined $2.6 million, or 40.4% from fourth quarter
  • Noninterest expenses of $102.8 million, or $100.0 million as adjusted(1)
    • $0.3 million of acquisition related costs
    • $2.5 million of other costs not expected to recur such as severance and branch consolidation costs
    • Adjustments(1) include:
    • Increase in expenses driven by $8.6 million of Summit expenses, higher healthcare costs and elevated payroll taxes
    • Efficiency ratio of 69.6%; 67.7% 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 March 31, 2022 and December 31, 2021 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. 

 

  • Total Allowance for Credit Losses of $137.3 million; Total quarterly provision recapture of $5.8 million
    • Loans and leases - ACL of $124.1 million, 1.34% of total loans
    • Unfunded Commitments - ACL of $13.2 million
    • Provision recapture driven by strong credit quality
    • Net charge-offs declined 69.3% to 0.10% of average loans and leases
  • Regulatory capital ratios remain in excess of internal targets:
    • Total capital ratio of 13.97%
    • Tier 1 common equity increased 3 basis points to 10.87%
    • Tangible common equity of 6.95%(1); decrease from linked quarter driven by decline in AOCI
    • Tangible book value per share of $10.97(1)

Archie Brown, President and Chief Executive Officer, commented, "We are pleased to announce another solid quarter of  financial results which were in line with expectations.  While we encountered some challenges related to mortgage banking and the wind down of PPP, the first quarter was a good start to what we expect will be a very strong year for First Financial."

Mr. Brown continued, "First quarter results included adjusted(1) earnings per share of $0.46, return on assets of 1.09% and return on tangible common equity of 15.75%.  These results were driven by provision recapture of $5.8 million, resulting from strong credit quality trends and stable economic conditions, and prudent expense management."

Mr. Brown added, "Improvement in net interest margin highlighted the quarter, with basic net interest margin increasing 12 basis points.  The margin benefited from the Fed rate hike and higher asset yields, which we expect to increase further as the year progresses given our asset sensitive balance sheet.  In addition, credit quality trends remain excellent, evidenced by stable classified asset levels, lower net charge-offs and provision recapture."

Mr. Brown further stated, "We were also pleased with our ability to diligently manage expenses, which were in line with our expectations despite elevated heathcare costs.  First quarter fee income was lower than we anticipated as rising rates negatively impacted mortgage banking revenue.  While foreign exchange declined from fourth quarter levels, Bannockburn's income can vary from quarter to quarter, and we expect them to rebound in the near term."

On loan growth, Mr. Brown remarked, "Loan growth was muted in the first quarter as originations were slowed by the peak of Omicron in January and higher payoffs continued as many borrowers sold their business or underlying assets.  Loan pipelines are strengthening and we are optimistic about improving loan trends as we move further into the year."

Regarding the Summit acquisition, Mr. Brown commented, "The integration of Summit continues to go as expected.  Its first quarter financial performance was in line with our initial expectations, and the cultural fit has proven to be as we had hoped.  Given the impact of acquisition accounting, our expectation remains that Summit's contributions will be neutral to overall 2022 financial results, and we remain bullish on the the future success of the Company."

Mr. Brown concluded, "Our first quarter results have laid a strong foundation and we believe our asset sensitive balance sheet is well-positioned for the rising rates that are expected over the course of 2022.  We have made strategic efforts to diversify our product offerings in recent years, and we believe those efforts position us to deliver the industry leading services to our clients and returns our shareholders have come to expect."

Full detail of the Company's first quarter 2022 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast InformationFirst Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 22, 2022 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (844) 200-6205 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 773559.  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 565117.  The recording will be available until April 29, 2022.  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 WebsiteThis 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 MeasuresThis 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, 2021, 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, 2022, the Company had $16.0 billion in assets, $9.2 billion in loans, $12.8 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, 2022.  The Company operated 135 full service banking centers as of March 31, 2022, primarily 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,

2022

2021

2021

2021

2021

RESULTS OF OPERATIONS

Net income

$        41,301

$        46,945

$        60,012

$        50,888

$        47,315

Net earnings per share - basic

$            0.44

$            0.51

$            0.64

$            0.53

$            0.49

Net earnings per share - diluted

$            0.44

$            0.50

$            0.63

$            0.52

$            0.48

Dividends declared per share

$            0.23

$            0.23

$            0.23

$            0.23

$            0.23

KEY FINANCIAL RATIOS

Return on average assets

1.03%

1.16%

1.49%

1.26%

1.20%

Return on average shareholders' equity

7.53%

8.31%

10.53%

9.02%

8.44%

Return on average tangible shareholders' equity (1)

14.93%

15.11%

19.03%

16.31%

15.24%

Net interest margin

3.12%

3.19%

3.28%

3.27%

3.35%

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

3.17%

3.23%

3.32%

3.31%

3.40%

Ending shareholders' equity as a percent of ending assets

13.35%

13.83%

14.01%

14.15%

13.97%

Ending tangible shareholders' equity as a percent of:

  Ending tangible assets (1)

6.95%

7.58%

8.21%

8.37%

8.22%

  Risk-weighted assets (1)

8.85%

9.91%

10.76%

11.12%

11.02%

Average shareholders' equity as a percent of average assets

13.75%

13.98%

14.14%

13.96%

14.17%

Average tangible shareholders' equity as a percent of

    average tangible assets (1)

7.44%

8.20%

8.35%

8.23%

8.38%

Book value per share

$        22.63

$        23.99

$        23.85

$        23.59

$        23.16

Tangible book value per share (1)

$        10.97

$        12.26

$        13.09

$        13.08

$        12.78

Common equity tier 1 ratio (3)

10.87%

10.84%

11.54%

11.78%

11.81%

Tier 1 ratio (3)

11.24%

11.22%

11.92%

12.16%

12.19%

Total capital ratio (3)

13.97%

14.10%

14.97%

15.31%

15.41%

Leverage ratio (3)

8.64%

8.70%

9.05%

9.14%

9.34%

AVERAGE BALANCE SHEET ITEMS

Loans (4)

$   9,266,774

$   9,283,227

$   9,502,750

$   9,831,965

$   9,951,855

Investment securities

4,308,059

4,343,513

4,189,253

4,130,207

3,782,993

Interest-bearing deposits with other banks

234,687

166,904

32,400

45,593

46,912

  Total earning assets

$ 13,809,520

$ 13,793,644

$ 13,724,403

$ 14,007,765

$ 13,781,760

Total assets

$ 16,184,919

$ 16,036,417

$ 15,995,808

$ 16,215,469

$ 16,042,654

Noninterest-bearing deposits

$   4,160,175

$   4,191,457

$   3,981,404

$   4,003,626

$   3,840,046

Interest-bearing deposits

8,623,800

8,693,792

8,685,949

8,707,553

8,531,822

  Total deposits

$ 12,783,975

$ 12,885,249

$ 12,667,353

$ 12,711,179

$ 12,371,868

Borrowings

$      701,287

$      396,743

$      562,964

$      749,114

$      886,379

Shareholders' equity

$   2,225,495

$   2,241,820

$   2,261,293

$   2,263,687

$   2,272,749

CREDIT QUALITY RATIOS

Allowance to ending loans

1.34%

1.42%

1.59%

1.68%

1.71%

Allowance to nonaccrual loans

273.09%

272.76%

225.73%

184.77%

199.33%

Allowance to nonperforming loans

231.98%

219.96%

192.35%

162.12%

175.44%

Nonperforming loans to total loans

0.58%

0.65%

0.83%

1.03%

0.97%

Nonaccrual loans to total loans

0.49%

0.52%

0.70%

0.91%

0.86%

Nonperforming assets to ending loans, plus OREO

0.58%

0.65%

0.83%

1.04%

0.98%

Nonperforming assets to total assets

0.33%

0.37%

0.49%

0.62%

0.60%

Classified assets to total assets

0.67%

0.64%

1.04%

1.14%

1.22%

Net charge-offs to average loans (annualized)

0.10%

0.32%

0.10%

0.23%

0.38%

(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, 2022 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)

2022

2021

First

Fourth

Third

Second

First

Full

Quarter

Quarter

Quarter

Quarter

Quarter

Year

Interest income

  Loans and leases, including fees

$  87,182

$  92,682

$  96,428

$  97,494

$  98,931

$ 385,535

  Investment securities

     Taxable

22,096

20,993

20,088

19,524

18,607

79,212

     Tax-exempt

4,431

4,127

4,282

4,871

5,043

18,323

        Total investment securities interest

26,527

25,120

24,370

24,395

23,650

97,535

  Other earning assets

121

71

23

25

28

147

       Total interest income

113,830

117,873

120,821

121,914

122,609

483,217

Interest expense

  Deposits

2,623

3,089

3,320

3,693

4,333

14,435

  Short-term borrowings

317

10

68

53

67

198

  Long-term borrowings

4,544

3,968

4,023

4,142

4,333

16,466

      Total interest expense

7,484

7,067

7,411

7,888

8,733

31,099

      Net interest income

106,346

110,806

113,410

114,026

113,876

452,118

  Provision for credit losses-loans and leases

(5,589)

(9,525)

(8,193)

(4,756)

3,450

(19,024)

  Provision for credit losses-unfunded commitments

(226)

1,799

(1,951)

517

538

903

      Net interest income after provision for credit losses

112,161

118,532

123,554

118,265

109,888

470,239

Noninterest income

  Service charges on deposit accounts

7,729

8,645

8,548

7,537

7,146

31,876

  Trust and wealth management fees

6,060

6,038

5,896

6,216

5,630

23,780

  Bankcard income

3,337

3,602

3,838

3,732

3,128

14,300

  Client derivative fees

799

2,303

2,273

1,795

1,556

7,927

  Foreign exchange income

10,151

12,808

9,191

12,037

10,757

44,793

  Leasing business income

6,076

0

0

0

0

0

  Net gains from sales of loans

3,872

6,492

8,586

8,489

9,454

33,021

  Net gain (loss) on sale of investment securities

3

(14)

(314)

(265)

(166)

(759)

  Net  gain (loss) on equity  securities

(199)

321

108

161

112

702

  Other

3,465

5,465

4,411

3,285

2,705

15,866

      Total noninterest income

41,293

45,660

42,537

42,987

40,322

171,506

Noninterest expenses

  Salaries and employee benefits

63,947

62,170

61,717

60,784

61,253

245,924

  Net occupancy

5,746

5,332

5,571

5,535

5,704

22,142

  Furniture and equipment

3,567

3,161

3,318

3,371

3,969

13,819

  Data processing

8,264

8,261

7,951

7,864

7,287

31,363

  Marketing

1,700

2,152

2,435

2,035

1,361

7,983

  Communication

666

677

669

746

838

2,930

  Professional services

2,159

5,998

2,199

2,029

1,450

11,676

  State intangible tax

1,131

651

1,202

1,201

1,202

4,256

  FDIC assessments

1,459

1,453

1,466

1,362

1,349

5,630

  Intangible amortization

2,914

2,401

2,479

2,480

2,479

9,839

  Leasing business expense

3,869

0

0

0

0

0

  Other

7,383

17,349

10,051

12,236

5,614

45,250

      Total noninterest expenses

102,805

109,605

99,058

99,643

92,506

400,812

Income before income taxes

50,649

54,587

67,033

61,609

57,704

240,933

Income tax expense (benefit)

9,348

7,642

7,021

10,721

10,389

35,773

      Net income

$  41,301

$  46,945

$  60,012

$  50,888

$  47,315

$ 205,160

ADDITIONAL DATA

Net earnings per share - basic

$     0.44

$     0.51

$      0.64

$      0.53

$      0.49

$      2.16

Net earnings per share - diluted

$     0.44

$     0.50

$      0.63

$      0.52

$      0.48

$      2.14

Dividends declared per share

$     0.23

$     0.23

$      0.23

$      0.23

$      0.23

$      0.92

Return on average assets

1.03%

1.16%

1.49%

1.26%

1.20%

1.28%

Return on average shareholders' equity

7.53%

8.31%

10.53%

9.02%

8.44%

9.08%

Interest income

$ 113,830

$ 117,873

$ 120,821

$ 121,914

$ 122,609

$ 483,217

Tax equivalent adjustment

1,467

1,386

1,434

1,619

1,652

6,091

   Interest income - tax equivalent

115,297

119,259

122,255

123,533

124,261

489,308

Interest expense

7,484

7,067

7,411

7,888

8,733

31,099

   Net interest income - tax equivalent

$ 107,813

$ 112,192

$ 114,844

$ 115,645

$ 115,528

$ 458,209

Net interest margin

3.12%

3.19%

3.28%

3.27%

3.35%

3.27%

Net interest margin (fully tax equivalent) (1)

3.17%

3.23%

3.32%

3.31%

3.40%

3.31%

Full-time equivalent employees

2,050 (2)

1,994

2,026

2,053

2,063

(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 standardpractice 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 peercomparisons.  Management also uses these measures to make peer comparisons.

(2)  Includes 65 FTE from the Summit acquisition.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

Mar. 31,

% Change

% Change

2022

2021

2021

2021

2021

Linked Qtr.

Comp Qtr.

ASSETS

     Cash and due from banks

$      230,428

$      220,031

$      209,748

$      206,918

$      210,191

4.7%

9.6%

     Interest-bearing deposits with other banks

227,147

214,811

29,799

38,610

19,180

5.7%

N/M

     Investment securities available-for-sale

3,957,882

4,207,846

4,114,094

3,955,839

3,753,763

(5.9)%

5.4%

     Investment securities held-to-maturity

92,597

98,420

103,886

112,456

121,945

(5.9)%

(24.1)%

     Other investments

114,563

102,971

97,831

129,432

131,814

11.3%

(13.1)%

     Loans held for sale

12,670

29,482

33,835

31,546

34,590

(57.0)%

(63.4)%

     Loans and leases

       Commercial and industrial

2,800,209

2,720,028

2,602,848

2,701,203

3,044,825

2.9%

(8.0)%

       Lease financing

125,867

109,624

67,855

68,229

66,574

14.8%

89.1%

       Construction real estate

479,744

455,894

477,004

630,329

642,709

5.2%

(25.4)%

       Commercial real estate

4,031,484

4,226,614

4,438,374

4,332,561

4,396,582

(4.6)%

(8.3)%

       Residential real estate

913,838

896,069

922,492

932,112

946,522

2.0%

(3.5)%

       Home equity

707,973

708,399

709,050

711,756

709,667

(0.1)%

(0.2)%

       Installment

132,197

119,454

96,077

89,143

82,421

10.7%

60.4%

       Credit card

50,305

52,217

47,231

46,177

44,669

(3.7)%

12.6%

          Total loans

9,241,617

9,288,299

9,360,931

9,511,510

9,933,969

(0.5)%

(7.0)%

       Less:

          Allowance for credit losses

(124,130)

(131,992)

(148,903)

(159,590)

(169,923)

(6.0)%

(26.9)%

                Net loans

9,117,487

9,156,307

9,212,028

9,351,920

9,764,046

(0.4)%

(6.6)%

     Premises and equipment

190,975

193,040

192,580

192,238

204,537

(1.1)%

(6.6)%

     Operating leases

87,432

73,857

0

0

0

18.4%

100.0%

     Goodwill

999,959

1,000,749

937,771

937,771

937,771

(0.1)%

6.6%

     Other intangibles

85,891

88,898

56,811

59,391

61,984

(3.4)%

38.6%

     Accrued interest and other assets

892,119

942,729

968,210

1,021,798

935,250

(5.4)%

(4.6)%

       Total Assets

$  16,009,150

$ 16,329,141

$  15,956,593

$ 16,037,919

$  16,175,071

(2.0)%

(1.0)%

LIABILITIES

     Deposits

       Interest-bearing demand

$   3,246,646

$   3,198,745

$   2,916,860

$   2,963,151

$   2,914,761

1.5%

11.4%

       Savings

4,188,867

4,157,374

4,223,905

4,093,229

4,006,181

0.8%

4.6%

       Time

1,121,966

1,330,263

1,517,419

1,548,109

1,731,757

(15.7)%

(35.2)%

          Total interest-bearing deposits

8,557,479

8,686,382

8,658,184

8,604,489

8,652,699

(1.5)%

(1.1)%

       Noninterest-bearing

4,261,429

4,185,572

4,019,197

3,901,691

3,995,370

1.8%

6.7%

          Total deposits

12,818,908

12,871,954

12,677,381

12,506,180

12,648,069

(0.4)%

1.4%

     Federal funds purchased and securities sold

         under agreements to repurchase

0

51,203

81,850

255,791

181,387

(100.0)%

(100.0)%

     FHLB short-term borrowings

185,000

225,000

107,000

217,000

0

(17.8)%

100.0%

     Other

0

20,000

0

0

0

(100.0)%

N/M

          Total short-term borrowings

185,000

296,203

188,850

472,791

181,387

(37.5)%

2.0%

     Long-term debt

379,840

409,832

313,230

313,039

583,722

(7.3)%

(34.9)%

          Total borrowed funds

564,840

706,035

502,080

785,830

765,109

(20.0)%

(26.2)%

     Accrued interest and other liabilities

487,957

492,210

540,962

476,402

502,951

(0.9)%

(3.0)%

       Total Liabilities

13,871,705

14,070,199

13,720,423

13,768,412

13,916,129

(1.4)%

(0.3)%

SHAREHOLDERS' EQUITY

     Common stock

1,634,903

1,640,358

1,637,065

1,635,470

1,633,137

(0.3)%

0.1%

     Retained earnings

857,178

837,473

812,082

773,857

745,220

2.4%

15.0%

     Accumulated other comprehensive income (loss)

(142,477)

(433)

14,230

30,735

18,101

N/M

N/M

     Treasury stock, at cost

(212,159)

(218,456)

(227,207)

(170,555)

(137,516)

(2.9)%

54.3%

       Total Shareholders' Equity

2,137,445

2,258,942

2,236,170

2,269,507

2,258,942

(5.4)%

(5.4)%

       Total Liabilities and Shareholders' Equity

$  16,009,150

$ 16,329,141

$  15,956,593

$ 16,037,919

$  16,175,071

(2.0)%

(1.0)%

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Quarterly Averages

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

Mar. 31,

2022

2021

2021

2021

2021

ASSETS

     Cash and due from banks

$      248,517

$      253,091

$      245,212

$      237,964

$      232,275

     Interest-bearing deposits with other banks

234,687

166,904

32,400

45,593

46,912

     Investment securities

4,308,059

4,343,513

4,189,253

4,130,207

3,782,993

     Loans held for sale

15,589

24,491

28,365

28,348

29,689

     Loans and leases

       Commercial and industrial

2,736,613

2,552,686

2,634,306

2,953,185

3,029,716

       Lease financing

115,703

67,537

67,159

66,124

70,508

       Construction real estate

474,278

460,588

567,091

630,351

647,655

       Commercial real estate

4,139,072

4,391,328

4,413,003

4,372,679

4,339,349

       Residential real estate

903,567

917,399

937,969

940,600

980,718

       Home equity

703,714

709,954

710,794

707,409

726,134

       Installment

125,579

106,188

93,937

84,768

81,377

       Credit card

52,659

53,056

50,126

48,501

46,709

          Total loans

9,251,185

9,258,736

9,474,385

9,803,617

9,922,166

       Less:

          Allowance for credit losses

(129,601)

(144,756)

(157,727)

(169,979)

(177,863)

                Net loans

9,121,584

9,113,980

9,316,658

9,633,638

9,744,303

     Premises and equipment

192,832

192,941

193,775

200,558

206,628

     Operating leases

81,907

801

0

0

0

     Goodwill

1,000,238

938,453

937,771

937,771

937,771

     Other intangibles

87,602

56,120

58,314

60,929

63,529

     Accrued interest and other assets

893,904

946,123

994,060

940,461

998,554

       Total Assets

$  16,184,919

$ 16,036,417

$  15,995,808

$  16,215,469

$  16,042,654

LIABILITIES

     Deposits

       Interest-bearing demand

$   3,246,919

$   3,069,416

$   2,960,388

$   2,973,930

$   2,948,682

       Savings

4,145,615

4,195,504

4,150,610

4,096,077

3,815,314

       Time

1,231,266

1,428,872

1,574,951

1,637,546

1,767,826

          Total interest-bearing deposits

8,623,800

8,693,792

8,685,949

8,707,553

8,531,822

       Noninterest-bearing

4,160,175

4,191,457

3,981,404

4,003,626

3,840,046

          Total deposits

12,783,975

12,885,249

12,667,353

12,711,179

12,371,868

     Federal funds purchased and securities sold

          under agreements to repurchase

45,358

79,382

186,401

194,478

184,483

     FHLB short-term borrowings

257,800

2,445

63,463

40,846

67,222

     Other

12,889

654

0

0

0

          Total short-term borrowings

316,047

82,481

249,864

235,324

251,705

     Long-term debt

385,240

314,262

313,100

513,790

634,674

       Total borrowed funds

701,287

396,743

562,964

749,114

886,379

     Accrued interest and other liabilities

474,162

512,605

504,198

491,489

511,658

       Total Liabilities

13,959,424

13,794,597

13,734,515

13,951,782

13,769,905

SHAREHOLDERS' EQUITY

     Common stock

1,638,321

1,637,828

1,635,833

1,633,950

1,636,884

     Retained earnings

841,652

822,500

783,760

754,456

726,351

     Accumulated other comprehensive loss

(38,448)

8,542

36,917

25,832

42,253

     Treasury stock, at cost

(216,030)

(227,050)

(195,217)

(150,551)

(132,739)

       Total Shareholders' Equity

2,225,495

2,241,820

2,261,293

2,263,687

2,272,749

       Total Liabilities and Shareholders' Equity

$  16,184,919

$ 16,036,417

$  15,995,808

$  16,215,469

$  16,042,654

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)

 Quarterly Averages

March 31, 2022

December 31, 2021

March 31, 2021

Balance

Interest

Yield

Balance

Interest

Yield

Balance

Interest

Yield

Earning assets

    Investments:

      Investment securities

$      4,308,059

$          26,527

2.50%

$  4,343,513

$      25,120

2.29%

$  3,782,993

$      23,650

2.54%

      Interest-bearing deposits with other banks

234,687

121

0.21%

166,904

71

0.17%

46,912

28

0.24%

    Gross loans (1)

9,266,774

87,182

3.82%

9,283,227

92,682

3.96%

9,951,855

98,931

4.03%

       Total earning assets

13,809,520

113,830

3.34%

13,793,644

117,873

3.39%

13,781,760

122,609

3.61%

Nonearning assets

    Allowance for credit losses

(129,601)

(144,756)

(177,863)

    Cash and due from banks

248,517

253,091

232,275

    Accrued interest and other assets

2,256,483

2,134,438

2,206,482

       Total assets

$    16,184,919

$ 16,036,417

$ 16,042,654

Interest-bearing liabilities

    Deposits:

      Interest-bearing demand

$      3,246,919

$              492

0.06%

$  3,069,416

$           461

0.06%

$  2,948,682

$           534

0.07%

      Savings

4,145,615

850

0.08%

4,195,504

901

0.09%

3,815,314

1,178

0.13%

      Time

1,231,266

1,281

0.42%

1,428,872

1,727

0.48%

1,767,826

2,621

0.60%

    Total interest-bearing deposits

8,623,800

2,623

0.12%

8,693,792

3,089

0.14%

8,531,822

4,333

0.21%

    Borrowed funds

      Short-term borrowings

316,047

317

0.41%

82,481

10

0.05%

251,705

67

0.11%

      Long-term debt

385,240

4,544

4.78%

314,262

3,968

5.01%

634,674

4,333

2.77%

        Total borrowed funds

701,287

4,861

2.81%

396,743

3,978

3.98%

886,379

4,400

2.01%

       Total interest-bearing liabilities

9,325,087

7,484

0.33%

9,090,535

7,067

0.31%

9,418,201

8,733

0.38%

Noninterest-bearing liabilities

    Noninterest-bearing demand deposits

4,160,175

4,191,457

3,840,046

    Other liabilities

474,162

512,605

511,658

    Shareholders' equity

2,225,495

2,241,820

2,272,749

       Total liabilities & shareholders' equity

$    16,184,919

$ 16,036,417

$ 16,042,654

Net interest income

$        106,346

$     110,806

$     113,876

Net interest spread

3.01%

3.08%

3.23%

Net interest margin

3.12%

3.19%

3.35%

Tax equivalent adjustment

0.05%

0.04%

0.05%

Net interest margin (fully tax equivalent)

3.17%

3.23%

3.40%

(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

$     2,220

$       (813)

$     1,407

$       (356)

$     3,233

$      2,877

    Interest-bearing deposits with other banks

17

33

50

(4)

97

93

    Gross loans (2)

(3,404)

(2,096)

(5,500)

(5,304)

(6,445)

(11,749)

       Total earning assets

(1,167)

(2,876)

(4,043)

(5,664)

(3,115)

(8,779)

Interest-bearing liabilities

    Total interest-bearing deposits

$       (386)

$         (80)

$       (466)

$    (1,738)

$          28

$     (1,710)

    Borrowed funds

    Short-term borrowings

75

232

307

185

65

250

    Long-term debt

(179)

755

576

3,153

(2,942)

211

       Total borrowed funds

(104)

987

883

3,338

(2,877)

461

       Total interest-bearing liabilities

(490)

907

417

1,600

(2,849)

(1,249)

          Net interest income (1)

$       (677)

$     (3,783)

$    (4,460)

$    (7,264)

$       (266)

$     (7,530)

(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,

2022

2021

2021

2021

2021

ALLOWANCE FOR CREDIT LOSS ACTIVITY

Balance at beginning of period

$  131,992

$  148,903

$  159,590

$  169,923

$  175,679

 Purchase accounting  ACL for PCD

0

17

0

0

0

  Provision for credit losses

(5,589)

(9,525)

(8,193)

(4,756)

3,450

  Gross charge-offs

    Commercial and industrial

2,845

1,364

2,617

3,729

7,910

    Lease financing

131

0

0

0

0

    Construction real estate

0

1,496

0

0

2

    Commercial real estate

0

9,150

1,030

2,041

1,250

    Residential real estate

22

6

74

46

1

    Home equity

21

22

200

240

611

    Installment

177

184

37

77

36

    Credit card

246

149

230

179

222

      Total gross charge-offs

3,442

12,371

4,188

6,312

10,032

  Recoveries

    Commercial and industrial

379

201

869

205

337

    Lease financing

33

0

0

0

0

    Construction real estate

0

0

0

3

0

    Commercial real estate

222

4,292

223

75

195

    Residential real estate

90

74

56

54

44

    Home equity

265

303

426

317

177

    Installment

21

27

53

37

34

    Credit card

159

71

67

44

39

      Total recoveries

1,169

4,968

1,694

735

826

  Total net charge-offs

2,273

7,403

2,494

5,577

9,206

Ending allowance for credit losses

$  124,130

$  131,992

$  148,903

$  159,590

$  169,923

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

  Commercial and industrial

0.37%

0.18%

0.26%

0.48%

1.01%

  Lease financing

0.34%

0.00%

0.00%

0.00%

0.00%

  Construction real estate

0.00%

1.29%

0.00%

0.00%

0.00%

  Commercial real estate

(0.02)%

0.44%

0.07%

0.18%

0.10%

  Residential real estate

(0.03)%

(0.03)%

0.01%

0.00%

(0.02)%

  Home equity

(0.14)%

(0.16)%

(0.13)%

(0.04)%

0.24%

  Installment

0.50%

0.59%

(0.07)%

0.19%

0.01%

  Credit card

0.67%

0.58%

1.29%

1.12%

1.59%

     Total net charge-offs

0.10%

0.32%

0.10%

0.23%

0.38%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

  Nonaccrual loans (1)

    Commercial and industrial

$    14,390

$    17,362

$    15,160

$    27,426

$    24,941

    Lease financing

249

203

0

16

0

    Construction real estate

0

0

0

0

0

    Commercial real estate

19,843

19,512

38,564

45,957

44,514

    Residential real estate

7,432

8,305

9,416

9,480

11,359

    Home equity

3,377

2,922

2,735

3,376

4,286

    Installment

163

88

91

115

146

      Nonaccrual loans

45,454

48,392

65,966

86,370

85,246

  Accruing troubled debt restructurings (TDRs)

8,055

11,616

11,448

12,070

11,608

     Total nonperforming loans

53,509

60,008

77,414

98,440

96,854

  Other real estate owned (OREO)

72

98

340

340

854

     Total nonperforming assets

53,581

60,106

77,754

98,780

97,708

  Accruing loans past due 90 days or more

87

137

104

155

92

     Total underperforming assets

$    53,668

$    60,243

$    77,858

$    98,935

$    97,800

Total classified assets

$  106,839

$  104,815

$  165,462

$  182,516

$  196,782

CREDIT QUALITY RATIOS

Allowance for credit losses to

     Nonaccrual loans

273.09%

272.76%

225.73%

184.77%

199.33%

     Nonperforming loans

231.98%

219.96%

192.35%

162.12%

175.44%

     Total ending loans

1.34%

1.42%

1.59%

1.68%

1.71%

Nonperforming loans to total loans

0.58%

0.65%

0.83%

1.03%

0.97%

Nonaccrual loans to total loans

0.49%

0.52%

0.70%

0.91%

0.86%

Nonperforming assets to

     Ending loans, plus OREO

0.58%

0.65%

0.83%

1.04%

0.98%

     Total assets

0.33%

0.37%

0.49%

0.62%

0.60%

Nonperforming assets, excluding accruing TDRs to

     Ending loans, plus OREO

0.49%

0.52%

0.71%

0.91%

0.87%

     Total assets

0.28%

0.30%

0.42%

0.54%

0.53%

Classified assets to total assets

0.67%

0.64%

1.04%

1.14%

1.22%

(1)  Nonaccrual loans include nonaccrual TDRs of $16.2  million,  $16.0  million, $20.3 million,  $21.5  million, and $20.9 million, as of March 31, 2022, December 31, 2021, September 30, 2021, June30, 2021, and March 31, 2021,  respectively.

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

Mar. 31,

2022

2021

2021

2021

2021

PER COMMON SHARE

Market Price

  High

$        26.73

$        25.79

$        24.06

$        26.02

$        26.40

  Low

$        22.92

$        22.89

$        21.48

$        23.35

$        17.62

  Close

$        23.05

$        24.38

$        23.41

$        23.63

$        24.00

Average shares outstanding - basic

93,383,932

92,903,900

94,289,097

96,123,645

96,873,940

Average shares outstanding - diluted

94,263,925

93,761,909

95,143,930

97,009,712

97,727,527

Ending shares outstanding

94,451,496

94,149,240

93,742,797

96,199,509

97,517,693

Total shareholders' equity

$  2,137,445

$  2,258,942

$  2,236,170

$  2,269,507

$  2,258,942

REGULATORY CAPITAL

Preliminary

Common equity tier 1 capital

$   1,272,115

$   1,262,789

$   1,316,059

$   1,333,209

$   1,334,882

Common equity tier 1 capital ratio

10.87%

10.84%

11.54%

11.78%

11.81%

Tier 1 capital

$   1,316,020

$   1,306,571

$   1,359,297

$   1,376,333

$   1,377,892

Tier 1 ratio

11.24%

11.22%

11.92%

12.16%

12.19%

Total capital

$   1,635,003

$   1,642,549

$   1,706,513

$   1,732,930

$   1,741,755

Total capital ratio

13.97%

14.10%

14.97%

15.31%

15.41%

Total capital in excess of minimum requirement

$      406,011

$      419,754

$      509,536

$      544,478

$      554,834

Total risk-weighted assets

$ 11,704,681

$ 11,645,666

$ 11,399,782

$ 11,318,590

$ 11,304,012

Leverage ratio

8.64%

8.70%

9.05%

9.14%

9.34%

OTHER CAPITAL RATIOS

Ending shareholders' equity to ending assets

13.35%

13.83%

14.01%

14.15%

13.97%

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

6.95%

7.58%

8.21%

8.37%

8.22%

Average shareholders' equity to average assets

13.75%

13.98%

14.14%

13.96%

14.17%

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

7.44%

8.20%

8.35%

8.23%

8.38%

REPURCHASE PROGRAM (2)

Shares repurchased

0

0

2,484,295

1,308,945

840,115

Average share repurchase price

N/A

N/A

$        23.04

$        25.11

$        21.40

Total cost of shares repurchased

N/A

N/A

$      57,231

$      32,864

$      17,982

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

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

N/A = Not applicable

 

Cision View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-first-quarter-2022-financial-results-301530549.html

SOURCE First Financial Bancorp.


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