First Financial Bancorp Announces Second Quarter 2022 Financial Results

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/21/2026

1. WMT
2. ROST
3. AAP
4. NVDA
5. SPY
6. AVGO
7. SPCX
8. BJ
9. BABA
10. OSIS

July 21, 2022 4:15 PM EDT
  • Earnings per diluted share of $0.55; $0.56 on an adjusted(1) basis
  • Return on average assets of 1.28%; 1.31% on an adjusted(1) basis
  • Net interest margin on FTE basis(1) of 3.47%; 30 bp increase from linked quarter
  • Loan growth of $191.4 million, excluding PPP; 8.3% on an annualized basis
  • Noninterest income of $49.8 million increased 20.6% from the linked quarter

CINCINNATI, July 21, 2022 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2022. 

For the three months ended June 30, 2022, the Company reported net income of $51.5 million, or $0.55 per diluted common share.  These results compare to net income of $41.3 million, or $0.44 per diluted common share, for the first quarter of 2022.  For the six months ended June 30, 2022, First Financial had earnings per diluted share of $0.98 compared to $1.01 for the same period in 2021.

Return on average assets for the second quarter of 2022 was 1.28% while return on average tangible common equity was 20.68%(1).  These compare to returns on average assets of 1.03% and return on average tangible common equity of 14.93%(1) in the first quarter of 2022.

Second quarter 2022 highlights include:

  • Strong loan growth when compared to linked quarter(2)
    • Loan balances increased $178.8 million compared to the first quarter; $191.4 million excluding PPP
    • Growth of 7.8% on an annualized basis; 8.3% on an annualized basis excluding PPP
    • Broad based portfolio growth, with large increases in C&I and residential real estate portfolios
  • Net interest margin of 3.43%, or 3.47% on a fully tax-equivalent basis(1), exceeded expectations
    • 30 bp increase to 3.47% from 3.17% in the first quarter due to higher asset yields resulting from higher interest rates
    • 34 bp increase in loan yields offset modest 2 basis point increase in cost of interest bearing deposits
  • Noninterest income of $49.8 million, or $50.8 million as adjusted(1)
    • Record foreign exchange income of $13.5 million; 32.7% increase from the linked quarter
    • Leasing business income of $7.2 million; 19.3% increase from the linked quarter
    • Wealth management fees remained strong at $6.3 million
    • Mortgage banking revenue increased $1.4 million; 35.4% increase from the linked quarter
    • Other noninterest income increased $2.3 million; 65.9% increase from the linked quarter driven by investments in limited partnerships
    • Adjusted(1) for $1.1 million loss on investment securities

(1) Non-GAAP measure.  For details on the calculation of these non-GAAP financial measures and a reconciliation tothe 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 June 30, 2022, 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. 

  • Noninterest expenses of $103.2 million, or $102.4 million as adjusted(1)
    • Adjustments(1) include $0.1 million of acquisition related costs and $0.7 million of other costs not expected to recur such as severance and branch consolidation costs
    • Slight increase in expenses driven by higher salaries and benefits tied to elevated fee income
    • Efficiency ratio of 61.8%; 60.9% as adjusted(1)
  • Total Allowance for Credit Losses of $134.5 million; Total quarterly provision recapture of $0.8 million
    • Loans and leases - ACL of $117.9 million, 1.25% of total loans
    • Unfunded Commitments - ACL of $16.7 million
    • Provision recapture driven by stable credit quality
    • Net charge-offs declined to 8 bps of average loans and leases
  • Regulatory capital ratios remain in excess of internal targets
    • Total capital ratio of 13.94%
    • Tier 1 common equity increased 4 basis points to 10.91%
    • Tangible common equity of 6.40%(1); decrease from linked quarter driven by decline in AOCI
    • Tangible book value per share of $10.27(1)

Archie Brown, President and CEO, commented on the quarter, "I am extremely pleased with our performance in the second quarter.  Earnings improved from the first quarter as our asset sensitive balance sheet was positively impacted by recent rate increases.  In addition, credit quality was stable with lower net charge-offs and nonaccrual loan balances.  This led to a small provision recapture for the quarter." 

Mr. Brown continued, "We were encouraged by our strong fee income performance for the quarter.  Total fee income surpassed our expectations due to record foreign exchange income, strong income from limited partnership investments and growing leasing business income.  While second quarter mortgage banking income increased 35% from the linked quarter, we continue to experience headwinds due to the rapid rise in interest rates.  In addition, recent overdraft program changes led to a modest reduction in deposit account service charges during the second quarter and we expect further decline due to these program changes in the coming periods."

Mr. Brown commented on loan growth, "We were very pleased with loan growth in the second quarter.  Loans (excluding PPP) increased by $191 million, or 8.3%, on an annualized basis.  Loan growth was broad based, with increases in the C&I, retail mortgage and consumer portfolios.  This more than offset a decline in the ICRE portfolio, which was driven by elevated prepayments.  In addition, we were also pleased with Summit's growth in the quarter, including operating leases, which increased $21 million, or 33.5%, during the period.  Loan origination activity remains strong as we head into the third quarter."

Mr. Brown concluded, "I want to thank our associates for their excellent performance so far this year.  As we head into the back half of the year, we are optimistic that our balance sheet is positioned to further benefit from additional rate increases and loan activity remains strong.  We remain diligent in our credit monitoring and are prepared to manage a downturn in the economy should it occur later in the interest rate cycle."

Full detail of the Company's second 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, July 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 099625.  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 049791.  The recording will be available until August 5, 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 StatementsCertain 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 June 30, 2022, the Company had $16.2 billion in assets, $9.4 billion in loans, $12.3 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 $3.0 billion in assets under management as of June 30, 2022.  The Company operated 135 full service banking centers as of June 30, 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,

Six months ended,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

2022

2022

2021

2021

2021

2022

2021

RESULTS OF OPERATIONS

Net income

$         51,520

$        41,301

$         46,945

$          60,012

$          50,888

$        92,821

$        98,203

Net earnings per share - basic

$             0.55

$            0.44

$             0.51

$              0.64

$              0.53

$            0.99

$            1.02

Net earnings per share - diluted

$             0.55

$            0.44

$             0.50

$              0.63

$              0.52

$            0.98

$            1.01

Dividends declared per share

$             0.23

$            0.23

$             0.23

$              0.23

$              0.23

$            0.46

$            0.46

KEY FINANCIAL RATIOS

Return on average assets

1.28 %

1.03 %

1.16 %

1.49 %

1.26 %

1.16 %

1.23 %

Return on average shareholders' equity

9.84 %

7.53 %

8.31 %

10.53 %

9.02 %

8.66 %

8.73 %

Return on average tangible shareholders' equity (1)

20.68 %

14.93 %

15.11 %

19.03 %

16.31 %

17.65 %

15.78 %

Net interest margin

3.43 %

3.12 %

3.19 %

3.28 %

3.27 %

3.27 %

3.31 %

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

3.47 %

3.17 %

3.23 %

3.32 %

3.31 %

3.32 %

3.35 %

Ending shareholders' equity as a percent of ending assets

12.74 %

13.35 %

13.83 %

14.01 %

14.15 %

12.74 %

14.15 %

Ending tangible shareholders' equity as a percent of:

Ending tangible assets (1)

6.40 %

6.95 %

7.58 %

8.21 %

8.37 %

6.40 %

8.37 %

Risk-weighted assets (1)

8.09 %

8.85 %

9.91 %

10.76 %

11.12 %

8.09 %

11.12 %

Average shareholders' equity as a percent of average assets

12.97 %

13.75 %

13.98 %

14.14 %

13.96 %

13.36 %

14.06 %

Average tangible shareholders' equity as a percent of

    average tangible assets (1)

6.62 %

7.44 %

8.20 %

8.35 %

8.23 %

7.03 %

8.30 %

Book value per share

$           21.90

$          22.63

$          23.99

$           23.85

$            23.59

$          21.90

$          23.59

Tangible book value per share (1)

$           10.27

$          10.97

$          12.26

$           13.09

$            13.08

$          10.27

$          13.08

Common equity tier 1 ratio (3)

10.91 %

10.87 %

10.84 %

11.54 %

11.78 %

10.91 %

11.78 %

Tier 1 ratio (3)

11.28 %

11.24 %

11.22 %

11.92 %

12.16 %

11.28 %

12.16 %

Total capital ratio (3)

13.94 %

13.97 %

14.10 %

14.97 %

15.31 %

13.94 %

15.31 %

Leverage ratio (3)

8.76 %

8.64 %

8.70 %

9.05 %

9.14 %

8.76 %

9.14 %

AVERAGE BALANCE SHEET ITEMS

Loans (4)

$    9,367,820

$     ,266,774

$    9,283,227

$    9,502,750

$     9,831,965

$    9,317,576

$    9,891,579

Investment securities

4,118,287

4,308,059

4,343,513

4,189,253

4,130,207

4,212,649

3,957,559

Interest-bearing deposits with other banks

236,797

234,687

166,904

32,400

45,593

235,748

46,249

  Total earning assets

$  13,722,904

$  13,809,520

$  13,793,644

$  13,724,403

$   14,007,765

$  13,765,973

$  13,895,387

Total assets

$  16,185,978

$  16,184,919

$  16,036,417

$  15,995,808

$   16,215,469

$  16,185,451

$  16,129,539

Noninterest-bearing deposits

$    4,224,842

$    4,160,175

$    4,191,457

$    3,981,404

$     4,003,626

$    4,192,687

$    3,922,288

Interest-bearing deposits

8,312,876

8,623,800

8,693,792

8,685,949

8,707,553

8,467,479

8,620,173

  Total deposits

$  12,537,718

$  12,783,975

$  12,885,249

$  12,667,353

$   12,711,179

$  12,660,166

$  12,542,461

Borrowings

$       970,243

$       701,287

$       396,743

$       562,964

$        749,114

$       836,508

$       817,367

Shareholders' equity

$    2,099,670

$    2,225,495

$    2,241,820

$    2,261,293

$     2,263,687

$    2,162,235

$    2,268,193

CREDIT QUALITY RATIOS

Allowance to ending loans

1.25 %

1.34 %

1.42 %

1.59 %

1.68 %

1.25 %

1.68 %

Allowance to nonaccrual loans

302.87 %

273.09 %

272.76 %

225.73 %

184.77 %

302.87 %

184.77 %

Allowance to nonperforming loans

235.08 %

231.98 %

219.96 %

192.35 %

162.12 %

235.08 %

162.12 %

Nonperforming loans to total loans

0.53 %

0.58 %

0.65 %

0.83 %

1.03 %

0.53 %

1.03 %

Nonaccrual loans to total loans

0.41 %

0.49 %

0.52 %

0.70 %

0.91 %

0.41 %

0.91 %

Nonperforming assets to ending loans, plus OREO

0.53 %

0.58 %

0.65 %

0.83 %

1.04 %

0.53 %

1.04 %

Nonperforming assets to total assets

0.31 %

0.33 %

0.37 %

0.49 %

0.62 %

0.31 %

0.62 %

Classified assets to total assets

0.74 %

0.67 %

0.64 %

1.04 %

1.14 %

0.74 %

1.14 %

Net charge-offs to average loans (annualized)

0.08 %

0.10 %

0.32 %

0.10 %

0.23 %

0.09 %

0.30 %

(1)

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

(2)

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

(3)

June 30, 2022 regulatory capital ratios are preliminary.

(4)

Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

Three months ended,

Six months ended,

June 30,

June 30,

2022

2021

% Change

2022

2021

% Change

Interest income

  Loans and leases, including fees

$       97,091

$       97,494

(0.4) %

$     184,273

$     196,425

(6.2) %

  Investment securities

     Taxable

23,639

19,524

21.1 %

45,735

38,131

19.9 %

     Tax-exempt

4,916

4,871

0.9 %

9,347

9,914

(5.7) %

        Total investment securities interest

28,555

24,395

17.1 %

55,082

48,045

14.6 %

  Other earning assets

497

25

N/M

618

53

N/M

       Total interest income

126,143

121,914

3.5 %

239,973

244,523

(1.9) %

Interest expense

  Deposits

2,963

3,693

(19.8) %

5,586

8,026

(30.4) %

  Short-term borrowings

1,373

53

N/M

1,690

120

N/M

  Long-term borrowings

4,612

4,142

11.3 %

9,156

8,475

8.0 %

      Total interest expense

8,948

7,888

13.4 %

16,432

16,621

(1.1) %

      Net interest income

117,195

114,026

2.8 %

223,541

227,902

(1.9) %

  Provision for credit losses-loans and leases

(4,267)

(4,756)

(10.3) %

(9,856)

(1,306)

N/M

  Provision for credit losses-unfunded commitments

3,481

517

N/M

3,255

1,055

208.5 %

      Net interest income after provision for credit losses

117,981

118,265

(0.2) %

230,142

228,153

0.9 %

Noninterest income

  Service charges on deposit accounts

7,648

7,537

1.5 %

15,377

14,683

4.7 %

  Trust and wealth management fees

6,311

6,216

1.5 %

12,371

11,846

4.4 %

  Bankcard income

3,823

3,732

2.4 %

7,160

6,860

4.4 %

  Client derivative fees

1,353

1,795

(24.6) %

2,152

3,351

(35.8) %

  Foreign exchange income

13,470

12,037

11.9 %

23,621

22,794

3.6 %

  Leasing business income

7,247

0

100.0 %

13,323

0

100.0 %

  Net gains from sales of loans

5,241

8,489

(38.3) %

9,113

17,943

(49.2) %

  Net gain (loss) on sale of investment securities

0

(265)

(100.0) %

3

(431)

(100.7) %

  Net gain (loss) on equity  securities

(1,054)

161

N/M

(1,253)

273

N/M

  Other

5,747

3,285

74.9 %

9,212

5,990

53.8 %

      Total noninterest income

49,786

42,987

15.8 %

91,079

83,309

9.3 %

Noninterest expenses

  Salaries and employee benefits

64,992

60,784

6.9 %

128,939

122,037

5.7 %

  Net occupancy

5,359

5,535

(3.2) %

11,105

11,239

(1.2) %

  Furniture and equipment

3,201

3,371

(5.0) %

6,768

7,340

(7.8) %

  Data processing

8,334

7,864

6.0 %

16,598

15,151

9.6 %

  Marketing

2,323

2,035

14.2 %

4,023

3,396

18.5 %

  Communication

670

746

(10.2) %

1,336

1,584

(15.7) %

  Professional services

2,214

2,029

9.1 %

4,373

3,479

25.7 %

  State intangible tax

1,090

1,201

(9.2) %

2,221

2,403

(7.6) %

  FDIC assessments

1,677

1,362

23.1 %

3,136

2,711

15.7 %

  Intangible amortization

2,915

2,480

17.5 %

5,829

4,959

17.5 %

  Leasing business expense

4,687

0

100.0 %

8,556

0

100.0 %

  Other

5,765

12,236

(52.9) %

13,148

17,850

(26.3) %

      Total noninterest expenses

103,227

99,643

3.6 %

206,032

192,149

7.2 %

Income before income taxes

64,540

61,609

4.8 %

115,189

119,313

(3.5) %

Income tax expense

13,020

10,721

21.4 %

22,368

21,110

6.0 %

      Net income

$       51,520

$       50,888

1.2 %

$       92,821

$       98,203

(5.5) %

ADDITIONAL DATA

Net earnings per share - basic

$          0.55

$          0.53

$          0.99

$          1.02

Net earnings per share - diluted

$          0.55

$          0.52

$          0.98

$          1.01

Dividends declared per share

$          0.23

$          0.23

$          0.46

$          0.46

Return on average assets

1.28 %

1.26 %

1.16 %

1.23 %

Return on average shareholders' equity

9.84 %

9.02 %

8.66 %

8.73 %

Interest income

$     126,143

$     121,914

3.5 %

$     239,973

$     244,523

(1.9) %

Tax equivalent adjustment

1,625

1,619

0.4 %

3,092

3,271

(5.5) %

   Interest income - tax equivalent

127,768

123,533

3.4 %

243,065

247,794

(1.9) %

Interest expense

8,948

7,888

13.4 %

16,432

16,621

(1.1) %

   Net interest income - tax equivalent

$     118,820

$     115,645

2.7 %

$     226,633

$     231,173

(2.0) %

Net interest margin

3.43 %

3.27 %

3.27 %

3.31 %

Net interest margin (fully tax equivalent) (1)

3.47 %

3.31 %

3.32 %

3.35 %

Full-time equivalent employees

2,096

2,053

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

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2022

Second

First

Year to

% Change

Quarter

Quarter

Date

Linked Qtr.

Interest income

  Loans and leases, including fees

$   97,091

$   87,182

$ 184,273

11.4 %

  Investment securities

     Taxable

23,639

22,096

45,735

7.0 %

     Tax-exempt

4,916

4,431

9,347

10.9 %

        Total investment securities interest

28,555

26,527

55,082

7.6 %

  Other earning assets

497

121

618

310.7 %

       Total interest income

126,143

113,830

239,973

10.8 %

Interest expense

  Deposits

2,963

2,623

5,586

13.0 %

  Short-term borrowings

1,373

317

1,690

333.1 %

  Long-term borrowings

4,612

4,544

9,156

1.5 %

      Total interest expense

8,948

7,484

16,432

19.6 %

      Net interest income

117,195

106,346

223,541

10.2 %

  Provision for credit losses-loans and leases

(4,267)

(5,589)

(9,856)

(23.7) %

  Provision for credit losses-unfunded commitments

3,481

(226)

3,255

N/M

      Net interest income after provision for credit losses

117,981

112,161

230,142

5.2 %

Noninterest income

  Service charges on deposit accounts

7,648

7,729

15,377

(1.0) %

  Trust and wealth management fees

6,311

6,060

12,371

4.1 %

  Bankcard income

3,823

3,337

7,160

14.6 %

  Client derivative fees

1,353

799

2,152

69.3 %

  Foreign exchange income

13,470

10,151

23,621

32.7 %

  Leasing business income

7,247

6,076

13,323

19.3 %

  Net gains from sales of loans

5,241

3,872

9,113

35.4 %

  Net gain (loss) on sale of investment securities

0

3

3

(100.0) %

  Net  gain (loss) on equity  securities

(1,054)

(199)

(1,253)

429.6 %

  Other

5,747

3,465

9,212

65.9 %

      Total noninterest income

49,786

41,293

91,079

20.6 %

Noninterest expenses

  Salaries and employee benefits

64,992

63,947

128,939

1.6 %

  Net occupancy

5,359

5,746

11,105

(6.7) %

  Furniture and equipment

3,201

3,567

6,768

(10.3) %

  Data processing

8,334

8,264

16,598

0.8 %

  Marketing

2,323

1,700

4,023

36.6 %

  Communication

670

666

1,336

0.6 %

  Professional services

2,214

2,159

4,373

2.5 %

  State intangible tax

1,090

1,131

2,221

(3.6) %

  FDIC assessments

1,677

1,459

3,136

14.9 %

  Intangible amortization

2,915

2,914

5,829

0.0 %

  Leasing business expense

4,687

3,869

8,556

21.1 %

  Other

5,765

7,383

13,148

(21.9) %

      Total noninterest expenses

103,227

102,805

206,032

0.4 %

Income before income taxes

64,540

50,649

115,189

27.4 %

Income tax expense

13,020

9,348

22,368

39.3 %

      Net income

$   51,520

$   41,301

$   92,821

24.7 %

ADDITIONAL DATA

Net earnings per share - basic

$      0.55

$      0.44

$      0.99

Net earnings per share - diluted

$      0.55

$      0.44

$      0.98

Dividends declared per share

$      0.23

$      0.23

$      0.46

Return on average assets

1.28 %

1.03 %

1.16 %

Return on average shareholders' equity

9.84 %

7.53 %

8.66 %

Interest income

$ 126,143

$ 113,830

$ 239,973

10.8 %

Tax equivalent adjustment

1,625

1,467

3,092

10.8 %

   Interest income - tax equivalent

127,768

115,297

243,065

10.8 %

Interest expense

8,948

7,484

16,432

19.6 %

   Net interest income - tax equivalent

$ 118,820

$ 107,813

$ 226,633

10.2 %

Net interest margin

3.43 %

3.12 %

3.27 %

Net interest margin (fully tax equivalent) (1)

3.47 %

3.17 %

3.32 %

Full-time equivalent employees

2,096

2,050 (2)

(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.

(2) Includes 65 FTE from Summit acquisition.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2021

Fourth

Third

Second

First

Full

Quarter

Quarter

Quarter

Quarter

Year

Interest income

  Loans and leases, including fees

$  92,682

$  96,428

$  97,494

$  98,931

$ 385,535

  Investment securities

     Taxable

20,993

20,088

19,524

18,607

79,212

     Tax-exempt

4,127

4,282

4,871

5,043

18,323

        Total investment securities interest

25,120

24,370

24,395

23,650

97,535

  Other earning assets

71

23

25

28

147

       Total interest income

117,873

120,821

121,914

122,609

483,217

Interest expense

  Deposits

3,089

3,320

3,693

4,333

14,435

  Short-term borrowings

10

68

53

67

198

  Long-term borrowings

3,968

4,023

4,142

4,333

16,466

      Total interest expense

7,067

7,411

7,888

8,733

31,099

      Net interest income

110,806

113,410

114,026

113,876

452,118

  Provision for credit losses-loans and leases

(9,525)

(8,193)

(4,756)

3,450

(19,024)

  Provision for credit losses-unfunded commitments

1,799

(1,951)

517

538

903

      Net interest income after provision for credit losses

118,532

123,554

118,265

109,888

470,239

Noninterest income

  Service charges on deposit accounts

8,645

8,548

7,537

7,146

31,876

  Trust and wealth management fees

6,038

5,896

6,216

5,630

23,780

  Bankcard income

3,602

3,838

3,732

3,128

14,300

  Client derivative fees

2,303

2,273

1,795

1,556

7,927

  Foreign exchange income

12,808

9,191

12,037

10,757

44,793

  Leasing business income

0

0

0

0

0

  Net gains from sales of loans

6,492

8,586

8,489

9,454

33,021

  Net gain (loss) on sale of investment securities

(14)

(314)

(265)

(166)

(759)

  Net  gain (loss) on equity  securities

321

108

161

112

702

  Other

5,465

4,411

3,285

2,705

15,866

      Total noninterest income

45,660

42,537

42,987

40,322

171,506

Noninterest expenses

  Salaries and employee benefits

62,170

61,717

60,784

61,253

245,924

  Net occupancy

5,332

5,571

5,535

5,704

22,142

  Furniture and equipment

3,161

3,318

3,371

3,969

13,819

  Data processing

8,261

7,951

7,864

7,287

31,363

  Marketing

2,152

2,435

2,035

1,361

7,983

  Communication

677

669

746

838

2,930

  Professional services

5,998

2,199

2,029

1,450

11,676

  State intangible tax

651

1,202

1,201

1,202

4,256

  FDIC assessments

1,453

1,466

1,362

1,349

5,630

  Intangible amortization

2,401

2,479

2,480

2,479

9,839

  Leasing business expense

0

0

0

0

0

  Other

17,349

10,051

12,236

5,614

45,250

      Total noninterest expenses

109,605

99,058

99,643

92,506

400,812

Income before income taxes

54,587

67,033

61,609

57,704

240,933

Income tax expense (benefit)

7,642

7,021

10,721

10,389

35,773

      Net income

$  46,945

$  60,012

$  50,888

$  47,315

$ 205,160

ADDITIONAL DATA

Net earnings per share - basic

$     0.51

$      0.64

$      0.53

$      0.49

$      2.16

Net earnings per share - diluted

$     0.50

$      0.63

$      0.52

$      0.48

$      2.14

Dividends declared per share

$     0.23

$      0.23

$      0.23

$      0.23

$      0.92

Return on average assets

1.16 %

1.49 %

1.26 %

1.20 %

1.28 %

Return on average shareholders' equity

8.31 %

10.53 %

9.02 %

8.44 %

9.08 %

Interest income

$  117,873

$ 120,821

$ 121,914

$ 122,609

$ 483,217

Tax equivalent adjustment

1,386

1,434

1,619

1,652

6,091

   Interest income - tax equivalent

119,259

122,255

123,533

124,261

489,308

Interest expense

7,067

7,411

7,888

8,733

31,099

   Net interest income - tax equivalent

$  112,192

$ 114,844

$ 115,645

$ 115,528

$ 458,209

Net interest margin

3.19 %

3.28 %

3.27 %

3.35 %

3.27 %

Net interest margin (fully tax equivalent) (1)

3.23 %

3.32 %

3.31 %

3.40 %

3.31 %

Full-time equivalent employees

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 standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

% Change

% Change

2022

2022

2021

2021

2021

Linked Qtr.

Comp Qtr.

ASSETS

     Cash and due from banks

$      302,549

$      230,428

$      220,031

$      209,748

$      206,918

31.3 %

46.2 %

     Interest-bearing deposits with other banks

184,974

227,147

214,811

29,799

38,610

(18.6) %

379.1 %

     Investment securities available-for-sale

3,843,580

3,957,882

4,207,846

4,114,094

3,955,839

(2.9) %

(2.8) %

     Investment securities held-to-maturity

88,057

92,597

98,420

103,886

112,456

(4.9) %

(21.7) %

     Other investments

132,151

114,563

102,971

97,831

129,432

15.4 %

2.1 %

     Loans held for sale

22,044

12,670

29,482

33,835

31,546

74.0 %

(30.1) %

     Loans and leases

       Commercial and industrial

2,927,175

2,800,209

2,720,028

2,602,848

2,701,203

4.5 %

8.4 %

       Lease financing

146,639

125,867

109,624

67,855

68,229

16.5 %

114.9 %

       Construction real estate

449,734

479,744

455,894

477,004

630,329

(6.3) %

(28.7) %

       Commercial real estate

4,007,037

4,031,484

4,226,614

4,438,374

4,332,561

(0.6) %

(7.5) %

       Residential real estate

965,387

913,838

896,069

922,492

932,112

5.6 %

3.6 %

       Home equity

725,700

707,973

708,399

709,050

711,756

2.5 %

2.0 %

       Installment

146,680

132,197

119,454

96,077

89,143

11.0 %

64.5 %

       Credit card

52,065

50,305

52,217

47,231

46,177

3.5 %

12.8 %

          Total loans

9,420,417

9,241,617

9,288,299

9,360,931

9,511,510

1.9 %

(1.0) %

       Less:

          Allowance for credit losses

(117,885)

(124,130)

(131,992)

(148,903)

(159,590)

(5.0) %

(26.1) %

                Net loans

9,302,532

9,117,487

9,156,307

9,212,028

9,351,920

2.0 %

(0.5) %

     Premises and equipment

191,099

190,975

193,040

192,580

192,238

0.1 %

(0.6) %

     Operating leases

82,659

61,927

60,811

0

0

33.5 %

100.0 %

     Goodwill

999,959

999,959

1,000,749

937,771

937,771

0.0 %

6.6 %

     Other intangibles

82,889

85,891

88,898

56,811

59,391

(3.5) %

39.6 %

     Accrued interest and other assets

1,011,221

917,624

955,775

968,210

1,021,798

10.2 %

(1.0) %

       Total Assets

$  16,243,714

$ 16,009,150

$  16,329,141

$ 15,956,593

$  16,037,919

1.5 %

1.3 %

LIABILITIES

     Deposits

       Interest-bearing demand

$   3,096,365

$   3,246,646

$   3,198,745

$   2,916,860

$   2,963,151

(4.6) %

4.5 %

       Savings

4,029,717

4,188,867

4,157,374

4,223,905

4,093,229

(3.8) %

(1.6) %

       Time

1,026,918

1,121,966

1,330,263

1,517,419

1,548,109

(8.5) %

(33.7) %

          Total interest-bearing deposits

8,153,000

8,557,479

8,686,382

8,658,184

8,604,489

(4.7) %

(5.2) %

       Noninterest-bearing

4,124,111

4,261,429

4,185,572

4,019,197

3,901,691

(3.2) %

5.7 %

          Total deposits

12,277,111

12,818,908

12,871,954

12,677,381

12,506,180

(4.2) %

(1.8) %

     Federal funds purchased and securities sold

         under agreements to repurchase

0

0

51,203

81,850

255,791

0.0 %

(100.0) %

     FHLB short-term borrowings

896,000

185,000

225,000

107,000

217,000

384.3 %

312.9 %

     Other

0

0

20,000

0

0

0.0 %

0.0 %

          Total short-term borrowings

896,000

185,000

296,203

188,850

472,791

384.3 %

89.5 %

     Long-term debt

358,578

379,840

409,832

313,230

313,039

(5.6) %

14.5 %

          Total borrowed funds

1,254,578

564,840

706,035

502,080

785,830

122.1 %

59.7 %

     Accrued interest and other liabilities

643,355

487,957

492,210

540,962

476,402

31.8 %

35.0 %

       Total Liabilities

14,175,044

13,871,705

14,070,199

13,720,423

13,768,412

2.2 %

3.0 %

SHAREHOLDERS' EQUITY

     Common stock

1,637,237

1,634,903

1,640,358

1,637,065

1,635,470

0.1 %

0.1 %

     Retained earnings

887,006

857,178

837,473

812,082

773,857

3.5 %

14.6 %

     Accumulated other comprehensive income (loss)

(243,328)

(142,477)

(433)

14,230

30,735

70.8 %

N/M

     Treasury stock, at cost

(212,245)

(212,159)

(218,456)

(227,207)

(170,555)

0.0 %

24.4 %

       Total Shareholders' Equity

2,068,670

2,137,445

2,258,942

2,236,170

2,269,507

(3.2) %

(8.8) %

       Total Liabilities and Shareholders' Equity

$  16,243,714

$ 16,009,150

$  16,329,141

$ 15,956,593

$  16,037,919

1.5 %

1.3 %

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Quarterly Averages

Year-to-Date Averages

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

2022

2022

2021

2021

2021

2022

2021

ASSETS

     Cash and due from banks

$      305,803

$      248,517

$      253,091

$      245,212

$      237,964

$       277,318

$       235,135

     Interest-bearing deposits with other banks

236,797

234,687

166,904

32,400

45,593

235,748

46,249

     Investment securities

4,118,287

4,308,059

4,343,513

4,189,253

4,130,207

4,212,649

3,957,559

     Loans held for sale

15,446

15,589

24,491

28,365

28,348

15,517

29,015

     Loans and leases

       Commercial and industrial

2,884,373

2,736,613

2,552,686

2,634,306

2,953,185

2,810,901

2,991,239

       Lease financing

134,334

115,703

67,537

67,159

66,124

125,070

68,304

       Construction real estate

460,609

474,278

460,588

567,091

630,351

467,406

638,955

       Commercial real estate

4,025,493

4,139,072

4,391,328

4,413,003

4,372,679

4,081,969

4,356,106

       Residential real estate

936,165

903,567

917,399

937,969

940,600

919,956

960,548

       Home equity

716,219

703,714

709,954

710,794

707,409

710,001

716,720

       Installment

140,145

125,579

106,188

93,937

84,768

132,902

83,082

       Credit card

55,036

52,659

53,056

50,126

48,501

53,854

47,610

          Total loans

9,352,374

9,251,185

9,258,736

9,474,385

9,803,617

9,302,059

9,862,564

       Less:

          Allowance for credit losses

(123,950)

(129,601)

(144,756)

(157,727)

(169,979)

(126,760)

(173,899)

                Net loans

9,228,424

9,121,584

9,113,980

9,316,658

9,633,638

9,175,299

9,688,665

     Premises and equipment

191,895

192,832

192,941

193,775

200,558

192,361

203,576

     Operating leases

73,862

61,297

659

0

0

67,614

0

     Goodwill

999,958

1,000,238

938,453

937,771

937,771

1,000,097

937,771

     Other intangibles

84,577

87,602

56,120

58,314

60,929

86,081

62,222

     Accrued interest and other assets

930,929

914,514

946,265

994,060

940,461

922,767

969,347

       Total Assets

$  16,185,978

$ 16,184,919

$  16,036,417

$  15,995,808

$  16,215,469

$  16,185,451

$  16,129,539

LIABILITIES

     Deposits

       Interest-bearing demand

$    3,180,846

$   3,246,919

$    3,069,416

$   2,960,388

$    2,973,930

$   3,213,700

$    2,961,376

       Savings

4,076,380

4,145,615

4,195,504

4,150,610

4,096,077

4,110,806

3,956,471

       Time

1,055,650

1,231,266

1,428,872

1,574,951

1,637,546

1,142,973

1,702,326

          Total interest-bearing deposits

8,312,876

8,623,800

8,693,792

8,685,949

8,707,553

8,467,479

8,620,173

       Noninterest-bearing

4,224,842

4,160,175

4,191,457

3,981,404

4,003,626

4,192,687

3,922,288

          Total deposits

12,537,718

12,783,975

12,885,249

12,667,353

12,711,179

12,660,166

12,542,461

     Federal funds purchased and securities sold

          under agreements to repurchase

24,229

45,358

79,382

186,401

194,478

34,735

189,508

     FHLB short-term borrowings

586,846

257,800

2,445

63,463

40,846

423,232

53,961

     Other

0

12,889

654

0

0

6,409

0

          Total short-term borrowings

611,075

316,047

82,481

249,864

235,324

464,376

243,469

     Long-term debt

359,168

385,240

314,262

313,100

513,790

372,132

573,898

       Total borrowed funds

970,243

701,287

396,743

562,964

749,114

836,508

817,367

     Accrued interest and other liabilities

578,347

474,162

512,605

504,198

491,489

526,542

501,518

       Total Liabilities

14,086,308

13,959,424

13,794,597

13,734,515

13,951,782

14,023,216

13,861,346

SHAREHOLDERS' EQUITY

     Common stock

1,635,990

1,638,321

1,637,828

1,635,833

1,633,950

1,637,149

1,635,409

     Retained earnings

866,910

841,652

822,500

783,760

754,456

854,351

740,481

     Accumulated other comprehensive loss

(190,949)

(38,448)

8,542

36,917

25,832

(115,120)

33,997

     Treasury stock, at cost

(212,281)

(216,030)

(227,050)

(195,217)

(150,551)

(214,145)

(141,694)

       Total Shareholders' Equity

2,099,670

2,225,495

2,241,820

2,261,293

2,263,687

2,162,235

2,268,193

       Total Liabilities and Shareholders' Equity

$  16,185,978

$ 16,184,919

$  16,036,417

$  15,995,808

$  16,215,469

$  16,185,451

$  16,129,539

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)

 Quarterly Averages

Year-to-Date Averages

June 30, 2022

March 31, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Balance

Interest

Yield

Balance

Interest

Yield

Balance

Interest

Yield

Balance

Yield

Balance

Yield

Earning assets

    Investments:

      Investment securities

$      4,118,287

$       28,555

2.78 %

$  4,308,059

$      26,527

2.50 %

$  4,130,207

$      24,395

2.37 %

$  4,212,649

2.64 %

$  3,957,559

2.45 %

      Interest-bearing deposits with other banks

236,797

497

0.84 %

234,687

121

0.21 %

45,593

25

0.22 %

235,748

0.53 %

46,249

0.23 %

    Gross loans (1)

9,367,820

97,091

4.16 %

9,266,774

87,182

3.82 %

9,831,965

97,494

3.98 %

9,317,576

3.99 %

9,891,579

4.00 %

       Total earning assets

13,722,904

126,143

3.69 %

13,809,520

113,830

3.34 %

14,007,765

121,914

3.49 %

13,765,973

3.52 %

13,895,387

3.55 %

Nonearning assets

    Allowance for credit losses

(123,950)

(129,601)

(169,979)

(126,760)

(173,899)

    Cash and due from banks

305,803

248,517

237,964

277,318

235,135

    Accrued interest and other assets

2,281,221

2,256,483

2,139,719

2,268,920

2,172,916

       Total assets

$    16,185,978

$ 16,184,919

$ 16,215,469

$ 16,185,451

$ 16,129,539

Interest-bearing liabilities

    Deposits:

      Interest-bearing demand

$      3,180,846

$           842

0.11 %

$  3,246,919

$           492

0.06 %

$  2,973,930

$           489

0.07 %

$  3,213,700

0.08 %

$  2,961,376

0.07 %

      Savings

4,076,380

1,003

0.10 %

4,145,615

850

0.08 %

4,096,077

1,106

0.11 %

4,110,806

0.09 %

3,956,471

0.12 %

      Time

1,055,650

1,118

0.42 %

1,231,266

1,281

0.42 %

1,637,546

2,098

0.51 %

1,142,973

0.42 %

1,702,326

0.56 %

    Total interest-bearing deposits

8,312,876

2,963

0.14 %

8,623,800

2,623

0.12 %

8,707,553

3,693

0.17 %

8,467,479

0.13 %

8,620,173

0.19 %

    Borrowed funds

      Short-term borrowings

611,075

1,373

0.90 %

316,047

317

0.41 %

235,324

53

0.09 %

464,376

0.73 %

243,469

0.10 %

      Long-term debt

359,168

4,612

5.15 %

385,240

4,544

4.78 %

513,790

4,142

3.23 %

372,132

4.96 %

573,898

2.98 %

        Total borrowed funds

970,243

5,985

2.47 %

701,287

4,861

2.81 %

749,114

4,195

2.25 %

836,508

2.61 %

817,367

2.12 %

       Total interest-bearing liabilities

9,283,119

8,948

0.39 %

9,325,087

7,484

0.33 %

9,456,667

7,888

0.33 %

9,303,987

0.36 %

9,437,540

0.36 %

Noninterest-bearing liabilities

    Noninterest-bearing demand deposits

4,224,842

4,160,175

4,003,626

4,192,687

3,922,288

    Other liabilities

578,347

474,162

491,489

526,542

501,518

    Shareholders' equity

2,099,670

2,225,495

2,263,687

2,162,235

2,268,193

       Total liabilities & shareholders' equity

$    16,185,978

$ 16,184,919

$ 16,215,469

$ 16,185,451

$ 16,129,539

Net interest income

$         117,195

$      106,346

$      114,026

$      223,541

$      227,902

Net interest spread

3.30 %

3.01 %

3.16 %

3.16 %

3.19 %

Net interest margin

3.43 %

3.12 %

3.27 %

3.27 %

3.31 %

Tax equivalent adjustment

0.04 %

0.05 %

0.04 %

0.05 %

0.04 %

Net interest margin (fully tax equivalent)

3.47 %

3.17 %

3.31 %

3.32 %

3.35 %

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

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)

(Dollars in thousands)

(Unaudited)

 Linked Qtr. Income Variance

 Comparable Qtr. Income Variance

Year-to-Date Income Variance

Rate

Volume

Total

Rate

Volume

Total

Rate

Volume

Total

Earning assets

    Investment securities

$     3,016

$       (988)

$     2,028

$     4,243

$         (83)

$      4,160

$     3,702

$     3,335

$      7,037

    Interest-bearing deposits with other banks

366

10

376

71

401

472

68

497

565

    Gross loans (2)

7,806

2,103

9,909

4,408

(4,811)

(403)

(800)

(11,352)

(12,152)

       Total earning assets

11,188

1,125

12,313

8,722

(4,493)

4,229

2,970

(7,520)

(4,550)

Interest-bearing liabilities

    Total interest-bearing deposits

$        417

$         (77)

$        340

$       (589)

$       (141)

$       (730)

$    (2,339)

$       (101)

$     (2,440)

    Borrowed funds

    Short-term borrowings

385

671

1,056

476

844

1,320

766

804

1,570

    Long-term debt

348

(280)

68

2,455

(1,985)

470

5,645

(4,964)

681

       Total borrowed funds

733

391

1,124

2,931

(1,141)

1,790

6,411

(4,160)

2,251

       Total interest-bearing liabilities

1,150

314

1,464

2,342

(1,282)

1,060

4,072

(4,261)

(189)

          Net interest income (1)

$    10,038

$        811

$    10,849

$     6,380

$    (3,211)

$      3,169

$    (1,102)

$    (3,259)

$     (4,361)

(1) Not tax equivalent.

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

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)

Six months ended

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

June 30,

2022

2022

2021

2021

2021

2022

2021

ALLOWANCE FOR CREDIT LOSS ACTIVITY

Balance at beginning of period

$  124,130

$  131,992

$  148,903

$  159,590

$  169,923

$  131,992

$  175,679

 Purchase accounting  ACL for PCD

0

0

17

0

0

0

0

  Provision for credit losses

(4,267)

(5,589)

(9,525)

(8,193)

(4,756)

(9,856)

(1,306)

  Gross charge-offs

    Commercial and industrial

773

2,845

1,364

2,617

3,729

3,618

11,639

    Lease financing

8

131

0

0

0

139

0

    Construction real estate

0

0

1,496

0

0

0

2

    Commercial real estate

3,419

0

9,150

1,030

2,041

3,419

3,291

    Residential real estate

4

22

6

74

46

26

47

    Home equity

22

21

22

200

240

43

851

    Installment

361

177

184

37

77

538

113

    Credit card

212

246

149

230

179

458

401

      Total gross charge-offs

4,799

3,442

12,371

4,188

6,312

8,241

16,344

  Recoveries

    Commercial and industrial

177

379

201

869

205

556

542

    Lease financing

3

33

0

0

0

36

0

    Construction real estate

0

0

0

0

3

0

3

    Commercial real estate

2,194

222

4,292

223

75

2,416

270

    Residential real estate

34

90

74

56

54

124

98

    Home equity

360

265

303

426

317

625

494

    Installment

47

21

27

53

37

68

71

    Credit card

6

159

71

67

44

165

83

      Total recoveries

2,821

1,169

4,968

1,694

735

3,990

1,561

  Total net charge-offs

1,978

2,273

7,403

2,494

5,577

4,251

14,783

Ending allowance for credit losses

$  117,885

$  124,130

$  131,992

$  148,903

$  159,590

$  117,885

$  159,590

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

  Commercial and industrial

0.08 %

0.37 %

0.18 %

0.26 %

0.48 %

0.22 %

0.75 %

  Lease financing

0.01 %

0.34 %

0.00 %

0.00 %

0.00 %

0.17 %

0.00 %

  Construction real estate

0.00 %

0.00 %

1.29 %

0.00 %

0.00 %

0.00 %

0.00 %

  Commercial real estate

0.12 %

(0.02) %

0.44 %

0.07 %

0.18 %

0.05 %

0.14 %

  Residential real estate

(0.01) %

(0.03) %

(0.03) %

0.01 %

0.00 %

(0.02) %

(0.01) %

  Home equity

(0.19) %

(0.14) %

(0.16) %

(0.13) %

(0.04) %

(0.17) %

0.10 %

  Installment

0.90 %

0.50 %

0.59 %

(0.07) %

0.19 %

0.71 %

0.10 %

  Credit card

1.50 %

0.67 %

0.58 %

1.29 %

1.12 %

1.10 %

1.35 %

     Total net charge-offs

0.08 %

0.10 %

0.32 %

0.10 %

0.23 %

0.09 %

0.30 %

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

  Nonaccrual loans (1)

    Commercial and industrial

$    11,675

$    14,390

$    17,362

$    15,160

$    27,426

$ 11,675

$ 27,426

    Lease financing

217

249

203

0

16

217

16

    Construction real estate

0

0

0

0

0

0

0

    Commercial real estate

14,650

19,843

19,512

38,564

45,957

14,650

45,957

    Residential real estate

8,879

7,432

8,305

9,416

9,480

8,879

9,480

    Home equity

3,331

3,377

2,922

2,735

3,376

3,331

3,376

    Installment

170

163

88

91

115

170

115

      Nonaccrual loans

38,922

45,454

48,392

65,966

86,370

38,922

86,370

  Accruing troubled debt restructurings (TDRs)

11,225

8,055

11,616

11,448

12,070

11,225

12,070

     Total nonperforming loans

50,147

53,509

60,008

77,414

98,440

50,147

98,440

  Other real estate owned (OREO)

22

72

98

340

340

22

340

     Total nonperforming assets

50,169

53,581

60,106

77,754

98,780

50,169

98,780

  Accruing loans past due 90 days or more

142

180

137

104

155

142

155

     Total underperforming assets

$    50,311

$    53,761

$    60,243

$    77,858

$    98,935

$ 50,311

$ 98,935

Total classified assets

$  119,769

$  106,839

$  104,815

$  165,462

$  182,516

$  119,769

$  182,516

CREDIT QUALITY RATIOS

Allowance for credit losses to

     Nonaccrual loans

302.87 %

273.09 %

272.76 %

225.73 %

184.77 %

302.87 %

184.77 %

     Nonperforming loans

235.08 %

231.98 %

219.96 %

192.35 %

162.12 %

235.08 %

162.12 %

     Total ending loans

1.25 %

1.34 %

1.42 %

1.59 %

1.68 %

1.25 %

1.68 %

Nonperforming loans to total loans

0.53 %

0.58 %

0.65 %

0.83 %

1.03 %

0.53 %

1.03 %

Nonaccrual loans to total loans

0.41 %

0.49 %

0.52 %

0.70 %

0.91 %

0.41 %

0.91 %

Nonperforming assets to

     Ending loans, plus OREO

0.53 %

0.58 %

0.65 %

0.83 %

1.04 %

0.53 %

1.04 %

     Total assets

0.31 %

0.33 %

0.37 %

0.49 %

0.62 %

0.31 %

0.62 %

Nonperforming assets, excluding accruing TDRs to

     Ending loans, plus OREO

0.41 %

0.49 %

0.52 %

0.71 %

0.91 %

0.41 %

0.91 %

     Total assets

0.24 %

0.28 %

0.30 %

0.42 %

0.54 %

0.24 %

0.54 %

Classified assets to total assets

0.74 %

0.67 %

0.64 %

1.04 %

1.14 %

0.74 %

1.14 %

(1)  Nonaccrual loans include nonaccrual TDRs of $9.5  million,  $16.2  million,  $16.0  million, $20.3 million,  and $21.5  million, as of June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and  June 30, 2021,  respectively.

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

Six months ended,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

June 30,

June 30,

2022

2022

2021

2021

2021

2022

2021

PER COMMON SHARE

Market Price

  High

$          23.03

$          26.73

$          25.79

$          24.06

$           26.02

$                        26.73

$                         26.40

  Low

$          19.09

$          22.92

$          22.89

$          21.48

$           23.35

$                        19.09

$                         17.62

  Close

$          19.40

$          23.05

$          24.38

$          23.41

$           23.63

$                        19.40

$                         23.63

Average shares outstanding - basic

93,555,131

93,383,932

92,903,900

94,289,097

96,123,645

93,470,005

96,496,720

Average shares outstanding - diluted

94,449,817

94,263,925

93,761,909

95,143,930

97,009,712

94,357,392

97,366,640

Ending shares outstanding

94,448,792

94,451,496

94,149,240

93,742,797

96,199,509

94,448,792

96,199,509

Total shareholders' equity

$    2,068,670

$     ,137,445

$    2,258,942

$    2,236,170

$    2,269,507

$                  2,068,670

$                  2,269,507

REGULATORY CAPITAL

Preliminary

Preliminary

Common equity tier 1 capital

$    1,307,259

$    1,272,115

$    1,262,789

$    1,316,059

$    1,333,209

$                  1,307,259

$                  1,333,209

Common equity tier 1 capital ratio

10.91 %

10.87 %

10.84 %

11.54 %

11.78 %

10.91 %

11.78 %

Tier 1 capital

$    1,351,287

$    1,316,020

$    1,306,571

$    1,359,297

$    1,376,333

$                  1,351,287

$                  1,376,333

Tier 1 ratio

11.28 %

11.24 %

11.22 %

11.92 %

12.16 %

11.28 %

12.16 %

Total capital

$    1,670,367

$    1,635,003

$    1,642,549

$    1,706,513

$    1,732,930

$                  1,670,367

$                  1,732,930

Total capital ratio

13.94 %

13.97 %

14.10 %

14.97 %

15.31 %

13.94 %

15.31 %

Total capital in excess of minimum requirement

$       412,432

$       406,011

$       419,754

$       509,536

$       544,478

$  412,432

$ 544,478

Total risk-weighted assets

$  11,980,331

$  11,704,681

$  11,645,666

$  11,399,782

$  11,318,590

$  11,980,331

$  11,318,590

Leverage ratio

8.76 %

8.64 %

8.70 %

9.05 %

9.14 %

8.76 %

9.14 %

OTHER CAPITAL RATIOS

Ending shareholders' equity to ending assets

12.74 %

13.35 %

13.83 %

14.01 %

14.15 %

12.74 %

14.15 %

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

6.40 %

6.95 %

7.58 %

8.21 %

8.37 %

6.40 %

8.37 %

Average shareholders' equity to average assets

12.97 %

13.75 %

13.98 %

14.14 %

13.96 %

13.36 %

14.06 %

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

6.62 %

7.44 %

8.20 %

8.35 %

8.23 %

7.03 %

8.30 %

REPURCHASE PROGRAM (2)

Shares repurchased

0

0

0

2,484,295

1,308,945

0

2,149,060

Average share repurchase price

N/A

N/A

N/A

$         23.04

$          25.11

N/A

$                        23.66

Total cost of shares repurchased

N/A

N/A

N/A

$       57,231

$        32,864

N/A

$                      50,846

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

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

N/A = Not applicable

 

 

Cision View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-second-quarter-2022-financial-results-301591313.html

SOURCE First Financial Bancorp.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

PRNewswire, Press Releases

Related Entities

Dividend, FDIC, Stock Buyback, Earnings, Definitive Agreement