FFBC - First Financial Bancorp Announces Third Quarter 2022 Financial Results

October, 20 2022 04:15 PM First Financial Bancorp.

PR Newswire

Earnings per diluted share of $0.59 ; $0.61 on an adjusted(1) basis
Return on average assets of 1.35%; 1.40% on an adjusted(1) basis
Net interest margin on FTE basis(1) of 3.98%; 53 bp increase from linked quarter
Loan growth of $377.0 million ; 15.9% on an annualized basis
Strong credit quality with declines in net charge-offs, classified and nonperforming assets from the linked quarter

CINCINNATI, Ohio , Oct. 20, 2022 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2022 .

For the three months ended September 30, 2022 , the Company reported net income of $55.7 million , or $0.59 per diluted common share. These results compare to net income of $51.5 million , or $0.55 per diluted common share, for the second quarter of 2022. For the nine months ended September 30, 2022 , First Financial had earnings per diluted share of $1.57 compared to $1.64 for the same period in 2021.

Return on average assets for the third quarter of 2022 was 1.35% while return on average tangible common equity was 22.29% ⁽¹⁾ . These compare to return on average assets of 1.28% and return on average tangible common equity of 20.68% ⁽¹⁾ in the second quarter of 2022.

Third quarter 2022 highlights include:

Strong loan growth when compared to linked quarter ⁽²⁾

Loan balances increased $377.0 million compared to the second quarter
Growth of 15.9% on an annualized basis
Broad based portfolio growth

Net interest margin of 3.93%, or 3.98% on a fully tax-equivalent basis ⁽¹⁾ , exceeded expectations

53 bp increase to 3.98% from 3.45% in the second quarter due to higher asset yields resulting from higher interest rates
89 bp increase in loan yields offset 11 basis point increase in cost of deposits

Noninterest income of $42.5 million , or $43.4 million as adjusted ⁽¹⁾

Foreign exchange income of $11.8 million exceeded expectations; 12.8% decline from record second quarter
Leasing business income of $7.1 million ; consistent with second quarter
Wealth management fees remained strong at $5.5 million
Mortgage banking revenue decreased $1.5 million ; 28.8% decrease from the linked quarter
Other noninterest income decreased $1.4 million in current quarter due to elevated income from investments in limited partnerships in second quarter
Adjusted ⁽¹⁾ for $0.9 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 September 30, 2022 , 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 $125.1 million , or $106.1 million as adjusted ⁽¹⁾

Adjustments ⁽¹⁾ include $17.2 million tax credit investment writedown and $1.4 million of severance costs
Increase driven by elevated incentive costs tied to Company performance and higher leasing business expenses during the period
Efficiency ratio of 69.3%; 58.5% as adjusted ⁽¹⁾

Total Allowance for Credit Losses of $141.1 million ; Total quarterly provision expense of $8.3 million

Loans and leases - ACL of $124.1 million , 1.27% of total loans
Unfunded Commitments - ACL of $17.0 million
Provision expense driven by loan growth and slower prepayment speeds
Net charge-offs declined slightly to 7 bps of average loans and leases

Regulatory capital ratios remain in excess of internal targets

Total capital ratio of 13.73%
Tier 1 common equity decreased 9 bps to 10.82%
Tangible common equity of 5.79% ⁽¹⁾ ; 8.07% ⁽¹⁾ excluding impact from AOCI
Tangible book value per share of $9.48 ⁽¹⁾

Archie Brown , President and CEO, commented on the quarter, "We are very excited about our third quarter performance. Adjusted earnings per share increased approximately 9% from the second quarter due to record revenue, which was driven by an 18% increase in net interest income. Recent rate increases continued to positively impact our asset sensitive balance sheet as our net interest margin accelerated by 53 basis points."

Mr. Brown continued, "Credit trends remained stable across the portfolio with slight reductions in non-performing loan and net charge off ratios. Even with these improvements, our loan loss reserve grew modestly to account for loan growth and the intermediate economic outlook."

Mr. Brown commented on loan growth, "We were very pleased with loan growth in the third quarter. Loan balances increased by $377 million or 15.9% on an annualized basis, which was driven by increases in C&I, Consumer and Residential Mortgage. Given our expectations for the economy in the near-term and moderating loan pipelines, we expect loan growth to ease in the coming months."

Mr. Brown continued, "Non-interest income was once again negatively impacted by rising rates and changes made to our overdraft program. We also experienced an expected decline in foreign exchange income from a record second quarter and mortgage activity suffered from softening demand. While we expect headwinds in the fourth quarter, we anticipate that fee income will increase modestly to close the year."

Mr. Brown concluded, "Our third quarter performance was strong and we are optimistic we can sustain this momentum over the remainder of 2022 and into the new year. Our balance sheet is well positioned for rising rates. In addition, with a loan to deposit ratio under 80%, strong liquidity and positive credit trends, we believe we are well situated to manage a potential economic downturn."

Full detail of the Company's third 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, October 21, 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 202818. 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 986167. The recording will be available until November 4, 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 September 30, 2022 , the Company had $16.6 billion in assets, $9.8 billion in loans, $12.3 billion in deposits and $2.0 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 September 30, 2022 . The Company operated 134 full service banking centers as of September 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,

Nine months ended,

Sep. 30,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

Sep. 30,

2022

2022

2022

2021

2021

2022

2021
RESULTS OF OPERATIONS













Net income
55,705

51,520

41,301

46,945

60,012

148,526

158,215
Net earnings per share - basic
0.60

0.55

0.44

0.51

0.64

1.59

1.65
Net earnings per share - diluted
0.59

0.55

0.44

0.50

0.63

1.57

1.64
Dividends declared per share
0.23

0.23

0.23

0.23

0.23

0.69

0.69














KEY FINANCIAL RATIOS













Return on average assets
1.35 %

1.28 %

1.03 %

1.16 %

1.49 %

1.22 %

1.32 %
Return on average shareholders' equity
10.58 %

9.84 %

7.53 %

8.31 %

10.53 %

9.29 %

9.34 %
Return on average tangible shareholders' equity ⁽¹⁾
22.29 %

20.68 %

14.93 %

15.11 %

19.03 %

19.14 %

16.87 %














Net interest margin
3.93 %

3.41 %

3.11 %

3.19 %

3.28 %

3.49 %

3.30 %
Net interest margin (fully tax equivalent) ⁽¹⁾⁽²⁾
3.98 %

3.45 %

3.16 %

3.23 %

3.32 %

3.53 %

3.34 %














Ending shareholders' equity as a percent of ending assets
12.00 %

12.74 %

13.35 %

13.83 %

14.01 %

12.00 %

14.01 %
Ending tangible shareholders' equity as a percent of:













Ending tangible assets ⁽¹⁾
5.79 %

6.40 %

6.95 %

7.58 %

8.21 %

5.79 %

8.21 %
Risk-weighted assets ⁽¹⁾
7.21 %

8.09 %

8.85 %

9.91 %

10.76 %

7.21 %

10.76 %














Average shareholders' equity as a percent of average assets
12.75 %

12.97 %

13.75 %

13.98 %

14.14 %

13.15 %

14.09 %
Average tangible shareholders' equity as a percent of













average tangible assets ⁽¹⁾
6.49 %

6.62 %

7.44 %

8.20 %

8.35 %

6.85 %

8.32 %














Book value per share
21.03

21.90

22.63

23.99

23.85

21.03

23.85
Tangible book value per share ⁽¹⁾
9.48

10.27

10.97

12.26

13.09

9.48

13.09














Common equity tier 1 ratio ⁽³⁾
10.82 %

10.91 %

10.87 %

10.85 %

11.55 %

10.82 %

11.55 %
Tier 1 ratio ⁽³⁾
11.17 %

11.28 %

11.24 %

11.22 %

11.92 %

11.17 %

11.92 %
Total capital ratio ⁽³⁾
13.73 %

13.94 %

13.97 %

14.11 %

14.97 %

13.73 %

14.97 %
Leverage ratio ⁽³⁾
8.88 %

8.76 %

8.64 %

8.70 %

9.05 %

8.88 %

9.05 %














AVERAGE BALANCE SHEET ITEMS













Loans ⁽⁴⁾
9,597,197

9,367,820

9,266,774

9,283,227

9,502,750

9,411,807

9,760,545
Investment securities
4,003,472

4,118,287

4,308,059

4,343,513

4,189,253

4,142,157

4,035,639
Interest-bearing deposits with other banks
317,146

294,136

273,763

166,904

32,400

295,174

41,582
Total earning assets
13,917,815

13,780,243

13,848,596

13,793,644

13,724,403

13,849,138

13,837,766
Total assets
16,385,989

16,185,978

16,184,919

16,036,417

15,995,808

16,253,031

16,084,472
Noninterest-bearing deposits
4,176,242

4,224,842

4,160,175

4,191,457

3,981,404

4,187,145

3,942,210
Interest-bearing deposits
8,194,781

8,312,876

8,623,800

8,693,792

8,685,949

8,375,581

8,642,339
Total deposits
12,371,023

12,537,718

12,783,975

12,885,249

12,667,353

12,562,726

12,584,549
Borrowings
1,406,718

1,079,596

721,695

396,743

562,964

1,071,845

731,634
Shareholders' equity
2,089,179

2,099,670

2,225,495

2,241,820

2,261,293

2,137,615

2,265,868














CREDIT QUALITY RATIOS












Allowance to ending loans
1.27 %

1.25 %

1.34 %

1.42 %

1.59 %

1.27 %

1.59 %
Allowance to nonaccrual loans
339.95 %

302.87 %

273.09 %

272.76 %

225.73 %

339.95 %

225.73 %
Allowance to nonperforming loans
261.11 %

235.08 %

231.98 %

219.96 %

192.35 %

261.11 %

192.35 %
Nonperforming loans to total loans
0.49 %

0.53 %

0.58 %

0.65 %

0.83 %

0.49 %

0.83 %
Nonaccrual loans to total loans
0.37 %

0.41 %

0.49 %

0.52 %

0.70 %

0.37 %

0.70 %
Nonperforming assets to ending loans, plus OREO
0.49 %

0.53 %

0.58 %

0.65 %

0.83 %

0.49 %

0.83 %
Nonperforming assets to total assets
0.29 %

0.31 %

0.33 %

0.37 %

0.49 %

0.29 %

0.49 %
Classified assets to total assets
0.69 %

0.74 %

0.67 %

0.64 %

1.04 %

0.69 %

1.04 %
Net charge-offs to average loans (annualized)
0.07 %

0.08 %

0.10 %

0.32 %

0.10 %

0.08 %

0.24 %

⁽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⁾ September 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,

Nine months ended,

Sep. 30,

Sep. 30,

2022

2021

% Change

2022

2021

% Change
Interest income











Loans and leases, including fees
122,170

96,428

26.7 %

306,443

292,853

4.6 %
Investment securities











Taxable
26,331

20,088

31.1 %

72,066

58,219

23.8 %
Tax-exempt
5,014

4,282

17.1 %

14,361

14,196

1.2 %
Total investment securities interest
31,345

24,370

28.6 %

86,427

72,415

19.3 %
Other earning assets
1,597

23

N/M

2,222

76

N/M
Total interest income
155,112

120,821

28.4 %

395,092

365,344

8.1 %












Interest expense











Deposits
6,386

3,320

92.3 %

11,972

11,346

5.5 %
Short-term borrowings
6,158

68

N/M

8,041

188

N/M
Long-term borrowings
4,676

4,023

16.2 %

13,832

12,498

10.7 %
Total interest expense
17,220

7,411

132.4 %

33,845

24,032

40.8 %
Net interest income
137,892

113,410

21.6 %

361,247

341,312

5.8 %
Provision for credit losses-loans and leases
7,898

(8,193)

(196.4) %

(1,958)

(9,499)

(79.4) %
Provision for credit losses-unfunded commitments
386

(1,951)

(119.8) %

3,641

(896)

(506.4) %
Net interest income after provision for credit losses
129,608

123,554

4.9 %

359,564

351,707

2.2 %












Noninterest income











Service charges on deposit accounts
6,279

8,548

(26.5) %

21,656

23,231

(6.8) %
Trust and wealth management fees
5,487

5,896

(6.9) %

17,858

17,742

0.7 %
Bankcard income
3,484

3,838

(9.2) %

10,644

10,698

(0.5) %
Client derivative fees
1,447

2,273

(36.3) %

3,619

5,624

(35.7) %
Foreign exchange income
11,752

9,191

27.9 %

35,373

31,985

10.6 %
Leasing business income
7,127

0

100.0 %

20,450

0

100.0 %
Net gains from sales of loans
3,729

8,586

(56.6) %

12,842

26,529

(51.6) %
Net gain (loss) on sale of investment securities
(179)

(314)

(43.0) %

(176)

(745)

(76.4) %
Net gain (loss) on equity securities
(701)

108

N/M

(1,954)

381

N/M
Other
4,109

4,411

(6.8) %

13,294

10,401

27.8 %
Total noninterest income
42,534

42,537

0.0 %

133,606

125,846

6.2 %












Noninterest expenses











Salaries and employee benefits
66,808

61,717

8.2 %

195,747

183,754

6.5 %
Net occupancy
5,669

5,571

1.8 %

16,774

16,810

(0.2) %
Furniture and equipment
3,222

3,318

(2.9) %

9,990

10,658

(6.3) %
Data processing
8,497

7,951

6.9 %

25,095

23,102

8.6 %
Marketing
2,523

2,435

3.6 %

6,546

5,831

12.3 %
Communication
657

669

(1.8) %

1,993

2,253

(11.5) %
Professional services
2,346

2,199

6.7 %

6,719

5,678

18.3 %
State intangible tax
1,090

1,202

(9.3) %

3,311

3,605

(8.2) %
FDIC assessments
1,885

1,466

28.6 %

5,021

4,177

20.2 %
Intangible amortization
2,783

2,479

12.3 %

8,612

7,438

15.8 %
Leasing business expense
5,746

0

100.0 %

14,302

0

100.0 %
Other
23,842

10,051

137.2 %

36,797

27,901

31.9 %
Total noninterest expenses
125,068

99,058

26.3 %

330,907

291,207

13.6 %
Income before income taxes
47,074

67,033

(29.8) %

162,263

186,346

(12.9) %
Income tax expense (benefit)
(8,631)

7,021

(222.9) %

13,737

28,131

(51.2) %
Net income
55,705

60,012

(7.2) %

148,526

158,215

(6.1) %












ADDITIONAL DATA











Net earnings per share - basic
0.60

0.64



1.59

1.65


Net earnings per share - diluted
0.59

0.63



1.57

1.64


Dividends declared per share
0.23

0.23



0.69

0.69














Return on average assets
1.35 %

1.49 %



1.22 %

1.32 %


Return on average shareholders' equity
10.58 %

10.53 %



9.29 %

9.34 %














Interest income
155,112

120,821

28.4 %

395,092

365,344

8.1 %
Tax equivalent adjustment
1,712

1,434

19.4 %

4,804

4,705

2.1 %
Interest income - tax equivalent
156,824

122,255

28.3 %

399,896

370,049

8.1 %
Interest expense
17,220

7,411

132.4 %

33,845

24,032

40.8 %
Net interest income - tax equivalent
139,604

114,844

21.6 %

366,051

346,017

5.8 %












Net interest margin
3.93 %

3.28 %



3.49 %

3.30 %


Net interest margin (fully tax equivalent) ⁽¹⁾
3.98 %

3.32 %



3.53 %

3.34 %














Full-time equivalent employees
2,072

2,026

⁽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

Third

Second

First

Year to

% Change

Quarter

Quarter

Quarter

Date

Linked Qtr.
Interest income









Loans and leases, including fees
$ 122,170

97,091

87,182

$ 306,443

25.8 %
Investment securities









Taxable
26,331

23,639

22,096

72,066

11.4 %
Tax-exempt
5,014

4,916

4,431

14,361

2.0 %
Total investment securities interest
31,345

28,555

26,527

86,427

9.8 %
Other earning assets
1,597

505

120

2,222

216.2 %
Total interest income
155,112

126,151

113,829

395,092

23.0 %










Interest expense









Deposits
6,386

2,963

2,623

11,972

115.5 %
Short-term borrowings
6,158

1,566

317

8,041

293.2 %
Long-term borrowings
4,676

4,612

4,544

13,832

1.4 %
Total interest expense
17,220

9,141

7,484

33,845

88.4 %
Net interest income
137,892

117,010

106,345

361,247

17.8 %
Provision for credit losses-loans and leases
7,898

(4,267)

(5,589)

(1,958)

(285.1) %
Provision for credit losses-unfunded commitments
386

3,481

(226)

3,641

(88.9) %
Net interest income after provision for credit losses
129,608

117,796

112,160

359,564

10.0 %










Noninterest income









Service charges on deposit accounts
6,279

7,648

7,729

21,656

(17.9) %
Trust and wealth management fees
5,487

6,311

6,060

17,858

(13.1) %
Bankcard income
3,484

3,823

3,337

10,644

(8.9) %
Client derivative fees
1,447

1,369

803

3,619

5.7 %
Foreign exchange income
11,752

13,470

10,151

35,373

(12.8) %
Leasing business income
7,127

7,247

6,076

20,450

(1.7) %
Net gains from sales of loans
3,729

5,241

3,872

12,842

(28.8) %
Net gain (loss) on sale of investment securities
(179)

0

3

(176)

(100.0) %
Net gain (loss) on equity securities
(701)

(1,054)

(199)

(1,954)

(33.5) %
Other
4,109

5,723

3,462

13,294

(28.2) %
Total noninterest income
42,534

49,778

41,294

133,606

(14.6) %










Noninterest expenses









Salaries and employee benefits
66,808

64,992

63,947

195,747

2.8 %
Net occupancy
5,669

5,359

5,746

16,774

5.8 %
Furniture and equipment
3,222

3,201

3,567

9,990

0.7 %
Data processing
8,497

8,334

8,264

25,095

2.0 %
Marketing
2,523

2,323

1,700

6,546

8.6 %
Communication
657

670

666

1,993

(1.9) %
Professional services
2,346

2,214

2,159

6,719

6.0 %
State intangible tax
1,090

1,090

1,131

3,311

0.0 %
FDIC assessments
1,885

1,677

1,459

5,021

12.4 %
Intangible amortization
2,783

2,915

2,914

8,612

(4.5) %
Leasing business expense
5,746

4,687

3,869

14,302

22.6 %
Other
23,842

5,572

7,383

36,797

327.9 %
Total noninterest expenses
125,068

103,034

102,805

330,907

21.4 %
Income before income taxes
47,074

64,540

50,649

162,263

(27.1) %
Income tax expense (benefit)
(8,631)

13,020

9,348

13,737

(166.3) %
Net income
55,705

51,520

41,301

$ 148,526

8.1 %










ADDITIONAL DATA









Net earnings per share - basic
0.60

0.55

0.44

1.59


Net earnings per share - diluted
0.59

0.55

0.44

1.57


Dividends declared per share
0.23

0.23

0.23

0.69












Return on average assets
1.35 %

1.28 %

1.03 %

1.22 %


Return on average shareholders' equity
10.58 %

9.84 %

7.53 %

9.29 %












Interest income
$ 155,112

$ 126,151

$ 113,829

$ 395,092

23.0 %
Tax equivalent adjustment
1,712

1,625

1,467

4,804

5.4 %
Interest income - tax equivalent
156,824

127,776

115,296

399,896

22.7 %
Interest expense
17,220

9,141

7,484

33,845

88.4 %
Net interest income - tax equivalent
$ 139,604

$ 118,635

$ 107,812

$ 366,051

17.7 %










Net interest margin
3.93 %

3.41 %

3.11 %

3.49 %


Net interest margin (fully tax equivalent) ⁽¹⁾
3.98 %

3.45 %

3.16 %

3.53 %












Full-time equivalent employees
2,072

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)















Sep. 30,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

% Change

% Change

2022

2022

2022

2021

2021

Linked Qtr.

Comp Qtr.
ASSETS













Cash and due from banks
195,553

217,481

214,571

220,031

209,748

(10.1) %

(6.8) %
Interest-bearing deposits with other banks
338,978

270,042

243,004

214,811

29,799

25.5 %

1,037.5 %
Investment securities available-for-sale
3,531,353

3,843,580

3,957,882

4,207,846

4,114,094

(8.1) %

(14.2) %
Investment securities held-to-maturity
85,823

88,057

92,597

98,420

103,886

(2.5) %

(17.4) %
Other investments
138,767

132,151

114,563

102,971

97,831

5.0 %

41.8 %
Loans held for sale
10,684

22,044

12,670

29,482

33,835

(51.5) %

(68.4) %
Loans and leases













Commercial and industrial
3,139,219

2,927,175

2,800,209

2,720,028

2,602,848

7.2 %

20.6 %
Lease financing
176,072

146,639

125,867

109,624

67,855

20.1 %

159.5 %
Construction real estate
489,446

449,734

479,744

455,894

477,004

8.8 %

2.6 %
Commercial real estate
3,976,345

4,007,037

4,031,484

4,226,614

4,438,374

(0.8) %

(10.4) %
Residential real estate
1,024,596

965,387

913,838

896,069

922,492

6.1 %

11.1 %
Home equity
737,318

725,700

707,973

708,399

709,050

1.6 %

4.0 %
Installment
202,267

146,680

132,197

119,454

96,077

37.9 %

110.5 %
Credit card
52,173

52,065

50,305

52,217

47,231

0.2 %

10.5 %
Total loans
9,797,436

9,420,417

9,241,617

9,288,299

9,360,931

4.0 %

4.7 %
Less:













Allowance for credit losses
(124,096)

(117,885)

(124,130)

(131,992)

(148,903)

5.3 %

(16.7) %
Net loans
9,673,340

9,302,532

9,117,487

9,156,307

9,212,028

4.0 %

5.0 %
Premises and equipment
189,067

191,099

190,975

193,040

192,580

(1.1) %

(1.8) %
Operating leases
84,851

82,659

61,927

60,811

0

2.7 %

100.0 %
Goodwill
998,422

999,959

999,959

1,000,749

937,771

(0.2) %

6.5 %
Other intangibles
96,528

99,019

101,673

104,367

71,663

(2.5) %

34.7 %
Accrued interest and other assets
1,280,427

995,091

901,842

940,306

953,358

28.7 %

34.3 %
Total Assets
16,623,793

$ 16,243,714

16,009,150

$ 16,329,141

15,956,593

2.3 %

4.2 %














LIABILITIES













Deposits













Interest-bearing demand
2,980,465

3,096,365

3,246,646

3,198,745

2,916,860

(3.7) %

2.2 %
Savings
3,980,020

4,029,717

4,188,867

4,157,374

4,223,905

(1.2) %

(5.8) %
Time
1,242,412

1,026,918

1,121,966

1,330,263

1,517,419

21.0 %

(18.1) %
Total interest-bearing deposits
8,202,897

8,153,000

8,557,479

8,686,382

8,658,184

0.6 %

(5.3) %
Noninterest-bearing
4,137,038

4,124,111

4,261,429

4,185,572

4,019,197

0.3 %

2.9 %
Total deposits
12,339,935

12,277,111

12,818,908

12,871,954

12,677,381

0.5 %

(2.7) %
Federal funds purchased and securities sold













under agreements to repurchase
3,535

0

0

51,203

81,850

100.0 %

(95.7) %
FHLB short-term borrowings
972,600

896,000

185,000

225,000

107,000

8.5 %

809.0 %
Other
184,912

152,226

57,247

20,000

0

21.5 %

100.0 %
Total short-term borrowings
1,161,047

1,048,226

242,247

296,203

188,850

10.8 %

514.8 %
Long-term debt
355,116

358,578

379,840

409,832

313,230

(1.0) %

13.4 %
Total borrowed funds
1,516,163

1,406,804

622,087

706,035

502,080

7.8 %

202.0 %
Accrued interest and other liabilities
773,563

491,129

430,710

492,210

540,962

57.5 %

43.0 %
Total Liabilities
14,629,661

14,175,044

13,871,705

14,070,199

13,720,423

3.2 %

6.6 %














SHAREHOLDERS' EQUITY













Common stock
1,631,696

1,637,237

1,634,903

1,640,358

1,637,065

(0.3) %

(0.3) %
Retained earnings
920,943

887,006

857,178

837,473

812,082

3.8 %

13.4 %
Accumulated other comprehensive income (loss)
(354,570)

(243,328)

(142,477)

(433)

14,230

45.7 %

N/M
Treasury stock, at cost
(203,937)

(212,245)

(212,159)

(218,456)

(227,207)

(3.9) %

(10.2) %
Total Shareholders' Equity
1,994,132

2,068,670

2,137,445

2,258,942

2,236,170

(3.6) %

(10.8) %
Total Liabilities and Shareholders' Equity
16,623,793

$ 16,243,714

16,009,150

$ 16,329,141

15,956,593

2.3 %

4.2 %

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)







Quarterly Averages

Year-to-Date Averages

Sep. 30,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

Sep. 30,

2022

2022

2022

2021

2021

2022

2021
ASSETS













Cash and due from banks
228,068

248,463

241,271

253,091

245,212

239,219

238,531
Interest-bearing deposits with other banks
317,146

294,136

273,763

166,904

32,400

295,174

41,582
Investment securities
4,003,472

4,118,287

4,308,059

4,343,513

4,189,253

4,142,157

4,035,639
Loans held for sale
12,283

15,446

15,589

24,491

28,365

14,427

28,796
Loans and leases













Commercial and industrial
3,040,547

2,884,373

2,736,613

2,552,686

2,634,306

2,888,291

2,870,954
Lease financing
158,667

134,334

115,703

67,537

67,159

136,392

67,918
Construction real estate
469,489

460,609

474,278

460,588

567,091

468,108

614,737
Commercial real estate
3,969,935

4,025,493

4,139,072

4,391,328

4,413,003

4,044,214

4,375,280
Residential real estate
998,476

936,165

903,567

917,399

937,969

946,417

952,939
Home equity
728,791

716,219

703,714

709,954

710,794

716,333

714,723
Installment
164,063

140,145

125,579

106,188

93,937

143,403

86,740
Credit card
54,946

55,036

52,659

53,056

50,126

54,222

48,458
Total loans
9,584,914

9,352,374

9,251,185

9,258,736

9,474,385

9,397,380

9,731,749
Less:













Allowance for credit losses
(119,000)

(123,950)

(129,601)

(144,756)

(157,727)

(124,145)

(168,449)
Net loans
9,465,914

9,228,424

9,121,584

9,113,980

9,316,658

9,273,235

9,563,300
Premises and equipment
190,738

191,895

192,832

192,941

193,775

191,814

200,273
Operating leases
83,970

73,862

61,297

659

0

73,126

0
Goodwill
999,690

999,958

1,000,238

938,453

937,771

999,960

937,771
Other intangibles
97,781

100,354

103,033

71,006

72,529

100,370

74,335
Accrued interest and other assets
986,927

915,153

867,253

931,379

979,845

923,549

964,245
Total Assets
16,385,989

$ 16,185,978

16,184,919

16,036,417

15,995,808

16,253,031

16,084,472














LIABILITIES













Deposits













Interest-bearing demand
3,105,547

3,180,846

3,246,919

3,069,416

2,960,388

3,177,253

2,961,043
Savings
4,036,565

4,076,380

4,145,615

4,195,504

4,150,610

4,085,787

4,021,895
Time
1,052,669

1,055,650

1,231,266

1,428,872

1,574,951

1,112,541

1,659,401
Total interest-bearing deposits
8,194,781

8,312,876

8,623,800

8,693,792

8,685,949

8,375,581

8,642,339
Noninterest-bearing
4,176,242

4,224,842

4,160,175

4,191,457

3,981,404

4,187,145

3,942,210
Total deposits
12,371,023

12,537,718

12,783,975

12,885,249

12,667,353

12,562,726

12,584,549
Federal funds purchased and securities sold













under agreements to repurchase
32,637

24,229

45,358

79,382

186,401

34,028

188,461
FHLB short-term borrowings
892,786

586,846

257,800

2,445

63,463

581,470

57,163
Other
131,237

109,353

33,297

654

0

91,654

0
Total short-term borrowings
1,056,660

720,428

336,455

82,481

249,864

707,152

245,624
Long-term debt
350,058

359,168

385,240

314,262

313,100

364,693

486,010
Total borrowed funds
1,406,718

1,079,596

721,695

396,743

562,964

1,071,845

731,634
Accrued interest and other liabilities
519,069

468,994

453,754

512,605

504,198

480,845

502,421
Total Liabilities
14,296,810

14,086,308

13,959,424

13,794,597

13,734,515

14,115,416

13,818,604














SHAREHOLDERS' EQUITY













Common stock
1,631,078

1,635,990

1,638,321

1,637,828

1,635,833

1,635,103

1,635,552
Retained earnings
899,524

866,910

841,652

822,500

783,760

869,574

755,066
Accumulated other comprehensive loss
(236,566)

(190,949)

(38,448)

8,542

36,917

(156,047)

34,981
Treasury stock, at cost
(204,857)

(212,281)

(216,030)

(227,050)

(195,217)

(211,015)

(159,731)
Total Shareholders' Equity
2,089,179

2,099,670

2,225,495

2,241,820

2,261,293

2,137,615

2,265,868
Total Liabilities and Shareholders' Equity
$ 16,385,989

$ 16,185,978

$ 16,184,919

$ 16,036,417

$ 15,995,808

$ 16,253,031

$ 16,084,472

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)







Quarterly Averages

Year-to-Date Averages


September 30, 2022

June 30, 2022

September 30, 2021

September 30, 2022

September 30, 2021


Balance

Interest

Yield

Balance

Interest

Yield

Balance

Interest

Yield

Balance

Yield

Balance

Yield
Earning assets


























Investments:


























Investment securities

4,003,472

31,345

3.11 %

4,118,287

28,555

2.78 %

4,189,253

24,370

2.31 %

4,142,157

2.79 %

4,035,639

2.40 %
Interest-bearing deposits with other banks

317,146

1,597

2.00 %

294,136

505

0.69 %

32,400

23

0.28 %

295,174

1.01 %

41,582

0.24 %
Gross loans ⁽¹⁾

9,597,197

122,170

5.05 %

9,367,820

97,091

4.16 %

9,502,750

96,428

4.03 %

9,411,807

4.35 %

9,760,545

4.01 %
Total earning assets

13,917,815

155,112

4.42 %

13,780,243

126,151

3.67 %

13,724,403

120,821

3.49 %

13,849,138

3.81 %

13,837,766

3.53 %



























Nonearning assets


























Allowance for credit losses

(119,000)





(123,950)





(157,727)





(124,145)



(168,449)


Cash and due from banks

228,068





248,463





245,212





239,219



238,531


Accrued interest and other assets

2,359,106





2,281,222





2,183,920





2,288,819



2,176,624


Total assets

16,385,989





$ 16,185,978





$ 15,995,808





$ 16,253,031



$ 16,084,472





























Interest-bearing liabilities


























Deposits:


























Interest-bearing demand

3,105,547

2,404

0.31 %

3,180,846

842

0.11 %

2,960,388

446

0.06 %

3,177,253

0.16 %

2,961,043

0.07 %
Savings

4,036,565

2,199

0.22 %

4,076,380

1,003

0.10 %

4,150,610

938

0.09 %

4,085,787

0.13 %

4,021,895

0.11 %
Time

1,052,669

1,783

0.67 %

1,055,650

1,118

0.42 %

1,574,951

1,936

0.49 %

1,112,541

0.50 %

1,659,401

0.54 %
Total interest-bearing deposits

8,194,781

6,386

0.31 %

8,312,876

2,963

0.14 %

8,685,949

3,320

0.15 %

8,375,581

0.19 %

8,642,339

0.18 %
Borrowed funds


























Short-term borrowings

1,056,660

6,158

2.31 %

720,428

1,566

0.87 %

249,864

68

0.11 %

707,152

1.52 %

245,624

0.10 %
Long-term debt

350,058

4,676

5.30 %

359,168

4,612

5.15 %

313,100

4,023

5.10 %

364,693

5.07 %

486,010

3.44 %
Total borrowed funds

1,406,718

10,834

3.06 %

1,079,596

6,178

2.30 %

562,964

4,091

2.88 %

1,071,845

2.73 %

731,634

2.32 %
Total interest-bearing liabilities

9,601,499

17,220

0.71 %

9,392,472

9,141

0.39 %

9,248,913

7,411

0.32 %

9,447,426

0.48 %

9,373,973

0.34 %



























Noninterest-bearing liabilities


























Noninterest-bearing demand deposits

4,176,242





4,224,842





3,981,404





4,187,145



3,942,210


Other liabilities

519,069





468,994





504,198





480,845



502,421


Shareholders' equity

2,089,179





2,099,670





2,261,293





2,137,615



2,265,868


Total liabilities & shareholders' equity

16,385,989





$ 16,185,978





$ 15,995,808





$ 16,253,031



$ 16,084,472





























Net interest income

137,892





117,010





113,410





361,247



341,312


Net interest spread





3.71 %





3.28 %





3.17 %



3.33 %



3.19 %
Net interest margin





3.93 %





3.41 %





3.28 %



3.49 %



3.30 %



























Tax equivalent adjustment





0.05 %





0.04 %





0.04 %



0.04 %



0.04 %
Net interest margin (fully tax equivalent)





3.98 %





3.45 %





3.32 %



3.53 %



3.34 %






















































⁽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

3,338

(548)

2,790

8,430

(1,455)

6,975

11,789

2,223

14,012
Interest-bearing deposits with other banks

960

132

1,092

140

1,434

1,574

237

1,909

2,146
Gross loans ⁽²⁾

20,863

4,216

25,079

24,540

1,202

25,742

24,945

(11,355)

13,590
Total earning assets

25,161

3,800

28,961

33,110

1,181

34,291

36,971

(7,223)

29,748



















Interest-bearing liabilities


















Total interest-bearing deposits

3,445

(22)

3,423

3,449

(383)

3,066

1,007

(381)

626
Borrowed funds


















Short-term borrowings

2,587

2,005

4,592

1,388

4,702

6,090

2,605

5,248

7,853
Long-term debt

134

(70)

64

159

494

653

5,935

(4,601)

1,334
Total borrowed funds

2,721

1,935

4,656

1,547

5,196

6,743

8,540

647

9,187
Total interest-bearing liabilities

6,166

1,913

8,079

4,996

4,813

9,809

9,547

266

9,813
Net interest income ⁽¹⁾

18,995

1,887

20,882

28,114

(3,632)

24,482

27,424

(7,489)

19,935

⁽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)











Nine months ended

Sep. 30,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

Sep. 30,

Sep. 30,

2022

2022

2022

2021

2021

2022

2021
ALLOWANCE FOR CREDIT LOSS ACTIVITY










Balance at beginning of period
117,885

124,130

131,992

148,903

159,590

131,992

175,679
Purchase accounting ACL for PCD
0

0

0

17

0

0

0
Provision for credit losses
7,898

(4,267)

(5,589)

(9,525)

(8,193)

(1,958)

(9,499)
Gross charge-offs













Commercial and industrial
1,947

773

2,845

1,364

2,617

5,565

14,256
Lease financing
13

8

131

0

0

152

0
Construction real estate
0

0

0

1,496

0

0

2
Commercial real estate
3

3,419

0

9,150

1,030

3,422

4,321
Residential real estate
119

4

22

6

74

145

121
Home equity
45

22

21

22

200

88

1,051
Installment
294

361

177

184

37

832

150
Credit card
237

212

246

149

230

695

631
Total gross charge-offs
2,658

4,799

3,442

12,371

4,188

10,899

20,532
Recoveries













Commercial and industrial
90

177

379

201

869

646

1,411
Lease financing
13

3

33

0

0

49

0
Construction real estate
0

0

0

0

0

0

3
Commercial real estate
561

2,194

222

4,292

223

2,977

493
Residential real estate
35

34

90

74

56

159

154
Home equity
185

360

265

303

426

810

920
Installment
29

47

21

27

53

97

124
Credit card
58

6

159

71

67

223

150
Total recoveries
971

2,821

1,169

4,968

1,694

4,961

3,255
Total net charge-offs
1,687

1,978

2,273

7,403

2,494

5,938

17,277
Ending allowance for credit losses
124,096

117,885

124,130

131,992

148,903

124,096

148,903














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










Commercial and industrial
0.24 %

0.08 %

0.37 %

0.18 %

0.26 %

0.23 %

0.60 %
Lease financing
0.00 %

0.01 %

0.34 %

0.00 %

0.00 %

0.10 %

0.00 %
Construction real estate
0.00 %

0.00 %

0.00 %

1.29 %

0.00 %

0.00 %

0.00 %
Commercial real estate
(0.06) %

0.12 %

(0.02) %

0.44 %

0.07 %

0.01 %

0.12 %
Residential real estate
0.03 %

(0.01) %

(0.03) %

(0.03) %

0.01 %

0.00 %

0.00 %
Home equity
(0.08) %

(0.19) %

(0.14) %

(0.16) %

(0.13) %

(0.13) %

0.02 %
Installment
0.64 %

0.90 %

0.50 %

0.59 %

(0.07) %

0.69 %

0.04 %
Credit card
1.29 %

1.50 %

0.67 %

0.58 %

1.29 %

1.16 %

1.33 %
Total net charge-offs
0.07 %

0.08 %

0.10 %

0.32 %

0.10 %

0.08 %

0.24 %














COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS


Nonaccrual loans ⁽¹⁾













Commercial and industrial
8,719

11,675

14,390

17,362

15,160

8,719

$ 15,160
Lease financing
376

217

249

203

0

376

0
Construction real estate
0

0

0

0

0

0

0
Commercial real estate
13,435

14,650

19,843

19,512

38,564

13,435

38,564
Residential real estate
10,250

8,879

7,432

8,305

9,416

10,250

9,416
Home equity
3,445

3,331

3,377

2,922

2,735

3,445

2,735
Installment
279

170

163

88

91

279

91
Nonaccrual loans
36,504

38,922

45,454

48,392

65,966

36,504

65,966
Accruing troubled debt restructurings (TDRs)
11,022

11,225

8,055

11,616

11,448

11,022

11,448
Total nonperforming loans
47,526

50,147

53,509

60,008

77,414

47,526

77,414
Other real estate owned (OREO)
22

22

72

98

340

22

340
Total nonperforming assets
47,548

50,169

53,581

60,106

77,754

47,548

77,754
Accruing loans past due 90 days or more
137

142

180

137

104

137

104
Total underperforming assets
47,685

50,311

53,761

60,243

77,858

$ 47,685

$ 77,858
Total classified assets
115,131

119,769

106,839

104,815

165,462

115,131

165,462














CREDIT QUALITY RATIOS










Allowance for credit losses to













Nonaccrual loans
339.95 %

302.87 %

273.09 %

272.76 %

225.73 %

339.95 %

225.73 %
Nonperforming loans
261.11 %

235.08 %

231.98 %

219.96 %

192.35 %

261.11 %

192.35 %
Total ending loans
1.27 %

1.25 %

1.34 %

1.42 %

1.59 %

1.27 %

1.59 %
Nonperforming loans to total loans
0.49 %

0.53 %

0.58 %

0.65 %

0.83 %

0.49 %

0.83 %
Nonaccrual loans to total loans
0.37 %

0.41 %

0.49 %

0.52 %

0.70 %

0.37 %

0.70 %
Nonperforming assets to













Ending loans, plus OREO
0.49 %

0.53 %

0.58 %

0.65 %

0.83 %

0.49 %

0.83 %
Total assets
0.29 %

0.31 %

0.33 %

0.37 %

0.49 %

0.29 %

0.49 %
Nonperforming assets, excluding accruing TDRs to













Ending loans, plus OREO
0.37 %

0.41 %

0.49 %

0.52 %

0.71 %

0.37 %

0.71 %
Total assets
0.22 %

0.24 %

0.28 %

0.30 %

0.42 %

0.22 %

0.42 %
Classified assets to total assets
0.69 %

0.74 %

0.67 %

0.64 %

1.04 %

0.69 %

1.04 %

⁽¹⁾ Nonaccrual loans include nonaccrual TDRs of $12.8 million, $9.5 million, $16.2 million, $16.0 million, and 20.3 million, as of September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)











Nine months ended,

Sep. 30,

June 30,

Mar. 31,

Dec. 31,

Sep. 30,

Sep. 30,

Sep. 30,

2022

2022

2022

2021

2021

2022

2021
PER COMMON SHARE













Market Price













High
23.75

23.03

26.73

25.79

24.06

26.73

26.40
Low
19.02

19.09

22.92

22.89

21.48

19.02

17.62
Close
21.08

19.40

23.05

24.38

23.41

21.08

23.41














Average shares outstanding - basic
93,582,250

93,555,131

93,383,932

92,903,900

94,289,097

93,507,831

95,752,759
Average shares outstanding - diluted
94,793,766

94,449,817

94,263,925

93,761,909

95,143,930

94,504,453

96,617,600
Ending shares outstanding
94,833,964

94,448,792

94,451,496

94,149,240

93,742,797

94,833,964

93,742,797














Total shareholders' equity
1,994,132

2,068,670

2,137,445

2,258,942

2,236,170

1,994,132

2,236,170














REGULATORY CAPITAL
Preliminary









Preliminary


Common equity tier 1 capital
1,348,413

1,307,259

1,272,115

1,262,789

1,316,059

1,348,413

1,316,059
Common equity tier 1 capital ratio
10.82 %

10.91 %

10.87 %

10.85 %

11.55 %

10.82 %

11.55 %
Tier 1 capital
1,392,565

1,351,287

1,316,020

1,306,571

1,359,297

1,392,565

1,359,297
Tier 1 ratio
11.17 %

11.28 %

11.24 %

11.22 %

11.92 %

11.17 %

11.92 %
Total capital
1,711,741

1,670,367

1,635,003

1,642,549

1,706,513

1,711,741

1,706,513
Total capital ratio
13.73 %

13.94 %

13.97 %

14.11 %

14.97 %

13.73 %

14.97 %
Total capital in excess of minimum requirement
402,662

412,167

405,931

420,118

509,579

402,662

$ 509,579
Total risk-weighted assets
12,467,422

11,982,860

11,705,447

11,642,201

11,399,375

12,467,422

11,399,375
Leverage ratio
8.88 %

8.76 %

8.64 %

8.70 %

9.05 %

8.88 %

9.05 %














OTHER CAPITAL RATIOS













Ending shareholders' equity to ending assets
12.00 %

12.74 %

13.35 %

13.83 %

14.01 %

12.00 %

14.01 %
Ending tangible shareholders' equity to ending tangible assets ⁽¹⁾
5.79 %

6.40 %

6.95 %

7.58 %

8.21 %

5.79 %

8.21 %
Average shareholders' equity to average assets
12.75 %

12.97 %

13.75 %

13.98 %

14.14 %

13.15 %

14.09 %
Average tangible shareholders' equity to average tangible assets ⁽¹⁾
6.49 %

6.62 %

7.44 %

8.20 %

8.35 %

6.85 %

8.32 %














REPURCHASE PROGRAM ⁽²⁾













Shares repurchased
0

0

0

0

2,484,295

0

4,633,355
Average share repurchase price
N/A

N/A

N/A

N/A

23.04

N/A

23.33
Total cost of shares repurchased
N/A

N/A

N/A

N/A

57,231

N/A

$ 108,077

⁽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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