FFBC - First Financial Bancorp Announces Second Quarter 2022 Financial Results

July, 21 2022 04:15 PM First Financial Bancorp.

PR Newswire

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

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

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

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

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

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 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

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

SOURCE First Financial Bancorp.

Company Name:	First Financial Bancorp.
Stock Symbol:	FFBC
Market:	NASDAQ
Website:	bankatfirst.com

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