First Financial Bancorp Announces First Quarter 2024 Financial Results and Quarterly Dividend
Earnings per diluted share of $0.53; $0.59 on an adjusted(1) basis
Return on average assets of 1.18%; 1.30% on an adjusted(1) basis
Net interest margin on FTE basis(1) of 4.10%
Acquired Agile Premium Finance
Loan growth of $271.9 million; 10.0% on an annualized basis
Tangible common equity ratio increased to 7.23%
Quarterly dividend of $0.23 approved by Board of Directors
CINCINNATI, April 25, 2024 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2024.
For the three months ended March 31, 2024, the Company reported net income of $50.7 million, or $0.53 per diluted common share. These results compare to net income of $56.7 million, or $0.60 per diluted common share, for the fourth quarter of 2023.
Return on average assets for the first quarter of 2024 was 1.18% while return on average tangible common equity was 17.35%(1). These compare to return on average assets of 1.31% and return on average tangible common equity of 21.36%(1) in the fourth quarter of 2023.
First quarter 2024 highlights include:
Net interest margin of 4.05%, or 4.10% on a fully tax-equivalent basis(1)
16 bp decrease to 4.10% from 4.26% in the fourth quarter due to increasing funding costs
Decline from linked quarter driven by 19 bp increase in funding costs, which was partially offset by modestly higher asset yields
Noninterest income of $46.5 million, or $51.7 million as adjusted(1)
Strong leasing business income of $14.6 million
Wealth management continues strong performance; 9.6% increase from linked quarter
Foreign exchange and client derivative fees improved from lower levels in fourth quarter
Adjusted(1)$5.2 million for losses on sales of investment securities related to repositioning of a portion of the portfolio
Noninterest expenses of $122.4 million, or $121.0 million as adjusted(1)
Increase from fourth quarter driven by seasonal payroll taxes and increased variable compensation tied to fee income
First quarter adjustments(1) include $0.2 million FDIC special assessment and $1.1 million of other costs such as acquisition, severance and branch consolidation costs
Efficiency ratio of 62.7%; 60.4% as adjusted(1)
Acquired Agile Premium Finance on February 29, 2024
Lends primarily to commercial customers to finance insurance premiums
$93.4 million in loan balances at acquisition; $119.0 million at March 31, 2024
$5.6 million of intangible assets, including $1.8 million of goodwill and $2.7 million customer list
(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.
Solid loan growth during the quarter
Loan balances increased $271.9 million compared to the linked quarter; includes $93.4 million acquired in Agile transaction
Growth of 10.0% on an annualized basis driven by Investor CRE and acquisition of Agile
Modest average deposit growth during the quarter
Average deposits increased $76.3 million, or 2.3% on an annualized basis; First quarter included approximately $100 million of seasonal business deposit outflows
Growth in money market accounts and retail CDs offset declines in noninterest bearing checking, savings and public funds
Total Allowance for Credit Losses of $160.4 million; Total quarterly provision expense of $11.2 million
Loans and leases - ACL of $144.3 million; ratio to total loans of 1.29% unchanged from fourth quarter
Unfunded Commitments - ACL of $16.2 million; decreased $2.3 million from linked quarter
Provision expense driven by net charge-offs and loan growth; Classified assets increased to $162.3 million
Annualized net charge-offs were 38 bps of total loans; 8 bps decline from linked quarter
NPAs to total assets of 0.34%; 4 bp, or 10.5% decline from linked quarter
Capital ratios stable and strong
Total capital ratio increased 5 bps to 14.31%
Tier 1 common equity decreased 6 bps to 11.67%
Tangible common equity increased 6 bps to 7.23%(1); 9.18%(1) excluding impact from AOCI
Tangible book value per share of $12.50(1);1.0% increase from linked quarter
Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on June 17, 2024 to shareholders of record as of June 3, 2024.
Archie Brown, President and CEO, commented on the quarter, "I am pleased with our first quarter results and encouraged by our trends, several of which were bolstered by actions we took during the quarter. These actions included a repositioning of a portion of the investment portfolio, a workforce efficiency initiative, and the acquisition of Agile Premium Finance. We also commenced the restructuring of a portion of our bank owned life insurance portfolio, which is expected to increase income in the back half of the year."
Mr. Brown continued, "Adjusted(1) earnings per share were $0.59, which resulted in an adjusted(1) return on assets of 1.30% and an adjusted(1) return on tangible common equity of 19.1%. At 4.10%, the net interest margin remains very strong. Asset yields remained steady during the quarter, however, as expected, the continued rise of funding costs negatively impacted our net interest margin. Additionally, loan growth was robust for the second consecutive quarter with balances increasing by 10% on an annualized basis. Average deposit growth slowed for the quarter to a 2.3% annualized growth rate and included a seasonal outflow of business deposits in the first part of the quarter."
Mr. Brown continued, "I am also pleased that noninterest income rebounded from the fourth quarter with increases across most of our fee revenue areas. During the quarter, we incurred a loss on the sale of investment securities associated with the repositioning of a portion of the investment portfolio. This repositioning has a very short earnback and should enhance our asset yields going forward. We also intensified our focus on expenses during the first quarter. Our workforce efficiency initiative resulted in the reduction of 43 associates during the quarter and we will continue to evaluate additional expense reductions throughout 2024. While expenses increased on a linked quarter basis, most of the increase was related to seasonal employee costs and variable compensation tied to the increase in fee income."
Mr. Brown discussed the Agile acquisition, "We are excited to add Agile to our mix of specialty businesses. Agile operates an impressive business model, which originates high-quality, short duration loans at attractive yields. At closing, we acquired $93 million in loans, which grew to $119 million at quarter end. We believe Agile will further diversify the loan portfolio and is a perfect complement to our Oak Street and commercial banking businesses."
Mr. Brown commented on asset quality, "Asset quality was stable for the quarter. Net charge-offs declined for the second consecutive quarter to 38 basis points and were primarily driven by charges on two office loans that had been on nonaccrual since early 2023. These two loans have been charged down to their net realizable value and no other office loans were considered classified at the end of the first quarter. Overall, classified assets increased 12 basis points to 0.92% of assets, while nonperforming assets declined 9.8% from the prior quarter."
Mr. Brown concluded, "I am pleased with our quarter and with the work our teams are doing to continuously improve the Company. While we are in a difficult operating environment for the industry, I am encouraged by our results and trends, and I expect we will have another strong year."
Full detail of the Company's first quarter 2024 performance is provided in the accompanying financial statements and slide presentation.
Teleconference / Webcast Information First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 26, 2024 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068. 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 (800) 770-2030 (U.S. toll free), (647) 362-9199 (U.S. local), access code 5048068. The recording will be available until May 10, 2024. 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, 2023, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp. First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2024, the Company had $17.6 billion in assets, $11.2 billion in loans, $13.5 billion in deposits and $2.3 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 $3.6 billion in assets under management as of March 31, 2024. The Company operated 130 full service banking centers as of March 31, 2024, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
2024
2023
2023
2023
2023
RESULTS OF OPERATIONS
Net income
$ 50,689
$ 56,732
$ 63,061
$ 65,667
$ 70,403
Net earnings per share - basic
$ 0.54
$ 0.60
$ 0.67
$ 0.70
$ 0.75
Net earnings per share - diluted
$ 0.53
$ 0.60
$ 0.66
$ 0.69
$ 0.74
Dividends declared per share
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.23
KEY FINANCIAL RATIOS
Return on average assets
1.18 %
1.31 %
1.48 %
1.55 %
1.69 %
Return on average shareholders' equity
9.00 %
10.50 %
11.62 %
12.32 %
13.71 %
Return on average tangible shareholders' equity (1)
17.35 %
21.36 %
23.60 %
25.27 %
29.02 %
Net interest margin
4.05 %
4.21 %
4.28 %
4.43 %
4.51 %
Net interest margin (fully tax equivalent) (1)(2)
4.10 %
4.26 %
4.33 %
4.48 %
4.55 %
Ending shareholders' equity as a percent of ending assets
12.99 %
12.94 %
12.49 %
12.54 %
12.53 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
7.23 %
7.17 %
6.50 %
6.56 %
6.47 %
Risk-weighted assets (1)
8.80 %
8.81 %
7.88 %
8.03 %
7.87 %
Average shareholders' equity as a percent of average assets
13.09 %
12.52 %
12.70 %
12.60 %
12.29 %
Average tangible shareholders' equity as a percent of
average tangible assets (1)
7.25 %
6.57 %
6.69 %
6.57 %
6.21 %
Book value per share
$ 23.95
$ 23.84
$ 22.39
$ 22.52
$ 22.29
Tangible book value per share (1)
$ 12.50
$ 12.38
$ 10.91
$ 11.02
$ 10.76
Common equity tier 1 ratio (3)
11.67 %
11.73 %
11.60 %
11.34 %
11.00 %
Tier 1 ratio (3)
12.00 %
12.06 %
11.94 %
11.68 %
11.34 %
Total capital ratio (3)
14.31 %
14.26 %
14.19 %
14.16 %
13.79 %
Leverage ratio (3)
9.75 %
9.70 %
9.59 %
9.33 %
9.03 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$ 11,066,184
$ 10,751,028
$ 10,623,734
$ 10,513,505
$ 10,373,302
Investment securities
3,137,665
3,184,408
3,394,237
3,560,453
3,635,317
Interest-bearing deposits with other banks
553,654
548,153
386,173
329,584
318,026
Total earning assets
$ 14,757,503
$ 14,483,589
$ 14,404,144
$ 14,403,542
$ 14,326,645
Total assets
$ 17,306,221
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 16,942,999
Noninterest-bearing deposits
$ 3,169,750
$ 3,368,024
$ 3,493,305
$ 3,663,419
$ 3,954,915
Interest-bearing deposits
10,109,416
9,834,819
9,293,860
9,050,464
8,857,226
Total deposits
$ 13,279,166
$ 13,202,843
$ 12,787,165
$ 12,713,883
$ 12,812,141
Borrowings
$ 1,139,014
$ 1,083,954
$ 1,403,071
$ 1,523,699
$ 1,434,338
Shareholders' equity
$ 2,265,562
$ 2,144,482
$ 2,153,601
$ 2,137,765
$ 2,082,210
CREDIT QUALITY RATIOS
Allowance to ending loans
1.29 %
1.29 %
1.36 %
1.41 %
1.36 %
Allowance to nonaccrual loans
243.55 %
215.10 %
193.75 %
276.70 %
409.46 %
Nonaccrual loans to total loans
0.53 %
0.60 %
0.70 %
0.51 %
0.33 %
Nonperforming assets to ending loans, plus OREO
0.53 %
0.60 %
0.71 %
0.51 %
0.33 %
Nonperforming assets to total assets
0.34 %
0.38 %
0.44 %
0.32 %
0.21 %
Classified assets to total assets
0.92 %
0.80 %
0.82 %
0.81 %
0.94 %
Net charge-offs to average loans (annualized)
0.38 %
0.46 %
0.61 %
0.22 %
0.00 %
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(3) March 31, 2024 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2024
2023
First
Fourth
Third
Second
First
Full
Quarter
Quarter
Quarter
Quarter
Quarter
Year
Interest income
Loans and leases, including fees
$ 201,840
$ 197,416
$ 192,261
$ 184,387
$ 169,706
$ 743,770
Investment securities
Taxable
28,296
30,294
31,297
32,062
31,867
125,520
Tax-exempt
3,092
3,402
3,522
3,513
3,464
13,901
Total investment securities interest
31,388
33,696
34,819
35,575
35,331
139,421
Other earning assets
7,458
7,325
5,011
3,933
3,544
19,813
Total interest income
240,686
238,437
232,091
223,895
208,581
903,004
Interest expense
Deposits
76,075
69,193
57,069
44,292
31,456
202,010
Short-term borrowings
10,943
10,277
14,615
15,536
12,950
53,378
Long-term borrowings
4,928
5,202
4,952
4,835
4,857
19,846
Total interest expense
91,946
84,672
76,636
64,663
49,263
275,234
Net interest income
148,740
153,765
155,455
159,232
159,318
627,770
Provision for credit losses-loans and leases
13,419
8,804
12,907
12,719
8,644
43,074
Provision for credit losses-unfunded commitments
(2,259)
1,426
(1,234)
(1,994)
1,835
33
Net interest income after provision for credit losses
137,580
143,535
143,782
148,507
148,839
584,663
Noninterest income
Service charges on deposit accounts
6,912
6,846
6,957
6,972
6,514
27,289
Wealth management fees
6,676
6,091
6,943
6,713
6,334
26,081
Bankcard income
3,142
3,349
3,406
3,692
3,592
14,039
Client derivative fees
1,250
711
1,612
1,827
1,005
5,155
Foreign exchange income
10,435
8,730
13,384
15,039
16,898
54,051
Leasing business income
14,589
12,856
14,537
10,265
13,664
51,322
Net gains from sales of loans
3,784
2,957
4,086
3,839
2,335
13,217
Net gain (loss) on sale of investment securities
(5,277)
(851)
(4)
(384)
(19)
(1,258)
Net gain (loss) on equity securities
90
202
(54)
(82)
140
206
Other
4,911
6,102
5,761
5,377
5,080
22,320
Total noninterest income
46,512
46,993
56,628
53,258
55,543
212,422
Noninterest expenses
Salaries and employee benefits
74,037
70,637
75,641
74,199
72,254
292,731
Net occupancy
5,923
5,890
5,809
5,606
5,685
22,990
Furniture and equipment
3,688
3,523
3,341
3,362
3,317
13,543
Data processing
8,305
8,488
8,473
9,871
9,020
35,852
Marketing
1,962
2,087
2,598
2,802
2,160
9,647
Communication
795
707
744
644
634
2,729
Professional services
2,268
3,148
2,524
2,308
1,946
9,926
State intangible tax
877
984
981
964
985
3,914
FDIC assessments
2,780
3,651
2,665
2,806
2,826
11,948
Intangible amortization
2,301
2,601
2,600
2,601
2,600
10,402
Leasing business expense
9,754
8,955
8,877
6,730
7,938
32,500
Other
9,665
8,466
7,791
8,722
7,328
32,307
Total noninterest expenses
122,355
119,137
122,044
120,615
116,693
478,489
Income before income taxes
61,737
71,391
78,366
81,150
87,689
318,596
Income tax expense (benefit)
11,048
14,659
15,305
15,483
17,286
62,733
Net income
$ 50,689
$ 56,732
$ 63,061
$ 65,667
$ 70,403
$ 255,863
ADDITIONAL DATA
Net earnings per share - basic
$ 0.54
$ 0.60
$ 0.67
$ 0.70
$ 0.75
$ 2.72
Net earnings per share - diluted
$ 0.53
$ 0.60
$ 0.66
$ 0.69
$ 0.74
$ 2.69
Dividends declared per share
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.92
Return on average assets
1.18 %
1.31 %
1.48 %
1.55 %
1.69 %
1.51 %
Return on average shareholders' equity
9.00 %
10.50 %
11.62 %
12.32 %
13.71 %
12.01 %
Interest income
$ 240,686
$ 238,437
$ 232,091
$ 223,895
$ 208,581
$ 903,004
Tax equivalent adjustment
1,535
1,672
1,659
1,601
1,424
6,356
Interest income - tax equivalent
242,221
240,109
233,750
225,496
210,005
909,360
Interest expense
91,946
84,672
76,636
64,663
49,263
275,234
Net interest income - tax equivalent
$ 150,275
$ 155,437
$ 157,114
$ 160,833
$ 160,742
$ 634,126
Net interest margin
4.05 %
4.21 %
4.28 %
4.43 %
4.51 %
4.36 %
Net interest margin (fully tax equivalent) (1)
4.10 %
4.26 %
4.33 %
4.48 %
4.55 %
4.40 %
Full-time equivalent employees
2,116
2,129
2,121
2,193
2,066
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
% Change
% Change
2024
2023
2023
2023
2023
Linked Qtr.
Comp Qtr.
ASSETS
Cash and due from banks
$ 199,407
$ 213,059
$ 220,335
$ 217,385
$ 199,835
(6.4) %
(0.2) %
Interest-bearing deposits with other banks
751,290
792,960
452,867
485,241
305,465
(5.3) %
145.9 %
Investment securities available-for-sale
2,850,667
3,021,126
3,044,361
3,249,404
3,384,949
(5.6) %
(15.8) %
Investment securities held-to-maturity
79,542
80,321
81,236
82,372
83,070
(1.0) %
(4.2) %
Other investments
125,548
129,945
133,725
141,892
143,606
(3.4) %
(12.6) %
Loans held for sale
11,534
9,213
12,391
15,267
9,280
25.2 %
24.3 %
Loans and leases
Commercial and industrial
3,591,428
3,501,221
3,420,873
3,433,162
3,449,289
2.6 %
4.1 %
Lease financing
492,862
474,817
399,973
360,801
273,898
3.8 %
79.9 %
Construction real estate
641,596
564,832
578,824
536,464
525,906
13.6 %
22.0 %
Commercial real estate
4,145,969
4,080,939
3,992,654
4,048,460
4,056,627
1.6 %
2.2 %
Residential real estate
1,344,677
1,333,674
1,293,470
1,221,484
1,145,069
0.8 %
17.4 %
Home equity
773,811
758,676
743,991
728,711
724,672
2.0 %
6.8 %
Installment
153,838
159,078
160,648
165,216
204,372
(3.3) %
(24.7) %
Credit card
60,939
59,939
56,386
55,911
53,552
1.7 %
13.8 %
Total loans
11,205,120
10,933,176
10,646,819
10,550,209
10,433,385
2.5 %
7.4 %
Less:
Allowance for credit losses
(144,274)
(141,433)
(145,201)
(148,646)
(141,591)
2.0 %
1.9 %
Net loans
11,060,846
10,791,743
10,501,618
10,401,563
10,291,794
2.5 %
7.5 %
Premises and equipment
198,428
194,740
192,572
192,077
188,959
1.9 %
5.0 %
Operating leases
161,473
153,214
136,883
132,272
153,986
5.4 %
4.9 %
Goodwill
1,007,656
1,005,868
1,005,868
1,005,828
1,005,738
0.2 %
0.2 %
Other intangibles
85,603
83,949
86,378
88,662
91,169
2.0 %
(6.1) %
Accrued interest and other assets
1,067,244
1,056,762
1,186,618
1,078,186
1,076,033
1.0 %
(0.8) %
Total Assets
$ 17,599,238
$ 17,532,900
$ 17,054,852
$ 17,090,149
$ 16,933,884
0.4 %
3.9 %
LIABILITIES
Deposits
Interest-bearing demand
$ 2,916,518
$ 2,993,219
$ 2,880,617
$ 2,919,472
$ 2,761,811
(2.6) %
5.6 %
Savings
4,467,894
4,331,228
4,023,455
3,785,445
3,746,403
3.2 %
19.3 %
Time
2,896,860
2,718,390
2,572,909
2,484,780
2,336,368
6.6 %
24.0 %
Total interest-bearing deposits
10,281,272
10,042,837
9,476,981
9,189,697
8,844,582
2.4 %
16.2 %
Noninterest-bearing
3,175,876
3,317,960
3,438,572
3,605,181
3,830,102
(4.3) %
(17.1) %
Total deposits
13,457,148
13,360,797
12,915,553
12,794,878
12,674,684
0.7 %
6.2 %
FHLB short-term borrowings
700,000
800,000
755,000
1,050,300
1,089,400
(12.5) %
(35.7) %
Other
162,145
137,814
219,188
165,983
128,160
17.7 %
26.5 %
Total short-term borrowings
862,145
937,814
974,188
1,216,283
1,217,560
(8.1) %
(29.2) %
Long-term debt
343,236
344,115
340,902
339,963
342,647
(0.3) %
0.2 %
Total borrowed funds
1,205,381
1,281,929
1,315,090
1,556,246
1,560,207
(6.0) %
(22.7) %
Accrued interest and other liabilities
649,706
622,200
694,700
595,606
577,497
4.4 %
12.5 %
Total Liabilities
15,312,235
15,264,926
14,925,343
14,946,730
14,812,388
0.3 %
3.4 %
SHAREHOLDERS' EQUITY
Common stock
1,632,971
1,638,972
1,636,054
1,632,659
1,629,428
(0.4) %
0.2 %
Retained earnings
1,166,065
1,136,718
1,101,905
1,060,715
1,016,893
2.6 %
14.7 %
Accumulated other comprehensive income (loss)
(321,109)
(309,819)
(410,005)
(353,010)
(328,059)
3.6 %
(2.1) %
Treasury stock, at cost
(190,924)
(197,897)
(198,445)
(196,945)
(196,766)
(3.5) %
(3.0) %
Total Shareholders' Equity
2,287,003
2,267,974
2,129,509
2,143,419
2,121,496
0.8 %
7.8 %
Total Liabilities and Shareholders' Equity
$ 17,599,238
$ 17,532,900
$ 17,054,852
$ 17,090,149
$ 16,933,884
0.4 %
3.9 %
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
2024
2023
2023
2023
2023
ASSETS
Cash and due from banks
$ 204,119
$ 214,678
$ 211,670
$ 221,527
$ 218,724
Interest-bearing deposits with other banks
553,654
548,153
386,173
329,584
318,026
Investment securities
3,137,665
3,184,408
3,394,237
3,560,453
3,635,317
Loans held for sale
12,069
12,547
15,420
11,856
5,531
Loans and leases
Commercial and industrial
3,543,475
3,422,381
3,443,615
3,469,683
3,456,681
Lease financing
480,540
419,179
371,598
323,819
252,219
Construction real estate
603,974
540,314
547,884
518,190
536,294
Commercial real estate
4,101,238
4,060,733
4,024,798
4,050,946
4,017,021
Residential real estate
1,336,749
1,320,670
1,260,249
1,181,053
1,115,889
Home equity
765,410
750,925
735,251
726,333
728,185
Installment
157,663
160,242
164,092
172,147
205,934
Credit card
65,066
64,037
60,827
59,478
55,548
Total loans
11,054,115
10,738,481
10,608,314
10,501,649
10,367,771
Less:
Allowance for credit losses
(143,950)
(149,398)
(150,297)
(145,578)
(136,419)
Net loans
10,910,165
10,589,083
10,458,017
10,356,071
10,231,352
Premises and equipment
198,482
194,435
194,228
190,583
190,346
Operating leases
154,655
139,331
132,984
138,725
107,092
Goodwill
1,006,477
1,005,870
1,005,844
1,005,791
1,005,713
Other intangibles
84,109
85,101
87,427
89,878
92,587
Accrued interest and other assets
1,044,826
1,151,349
1,065,389
1,063,587
1,138,311
Total Assets
$ 17,306,221
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 16,942,999
LIABILITIES
Deposits
Interest-bearing demand
$ 2,895,768
$ 2,988,086
$ 2,927,416
$ 2,906,855
$ 2,906,712
Savings
4,399,768
4,235,658
3,919,590
3,749,902
3,818,807
Time
2,813,880
2,611,075
2,446,854
2,393,707
2,131,707
Total interest-bearing deposits
10,109,416
9,834,819
9,293,860
9,050,464
8,857,226
Noninterest-bearing
3,169,750
3,368,024
3,493,305
3,663,419
3,954,915
Total deposits
13,279,166
13,202,843
12,787,165
12,713,883
12,812,141
Federal funds purchased and securities sold
under agreements to repurchase
4,204
3,586
10,788
21,881
26,380
FHLB short-term borrowings
646,187
554,826
878,199
1,028,207
925,144
Other
146,127
185,221
175,682
132,088
139,195
Total short-term borrowings
796,518
743,633
1,064,669
1,182,176
1,090,719
Long-term debt
342,496
340,321
338,402
341,523
343,619
Total borrowed funds
1,139,014
1,083,954
1,403,071
1,523,699
1,434,338
Accrued interest and other liabilities
622,479
693,676
607,552
592,708
614,310
Total Liabilities
15,040,659
14,980,473
14,797,788
14,830,290
14,860,789
SHAREHOLDERS' EQUITY
Common stock
1,637,835
1,637,197
1,634,102
1,631,230
1,633,396
Retained earnings
1,144,447
1,111,786
1,076,515
1,034,092
989,777
Accumulated other comprehensive loss
(319,601)
(406,265)
(358,769)
(330,263)
(339,450)
Treasury stock, at cost
(197,119)
(198,236)
(198,247)
(197,294)
(201,513)
Total Shareholders' Equity
2,265,562
2,144,482
2,153,601
2,137,765
2,082,210
Total Liabilities and Shareholders' Equity
$ 17,306,221
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 16,942,999
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
Quarterly Averages
March 31, 2024
December 31, 2023
March 31, 2023
Balance
Interest
Yield
Balance
Interest
Yield
Balance
Interest
Yield
Earning assets
Investments:
Investment securities
$ 3,137,665
$ 31,388
4.01 %
$ 3,184,408
$ 33,696
4.20 %
$ 3,635,317
$ 35,331
3.94 %
Interest-bearing deposits with other banks
553,654
7,458
5.40 %
548,153
7,325
5.30 %
318,026
3,544
4.52 %
Gross loans (1)
11,066,184
201,840
7.32 %
10,751,028
197,416
7.29 %
10,373,302
169,706
6.63 %
Total earning assets
14,757,503
240,686
6.54 %
14,483,589
238,437
6.53 %
14,326,645
208,581
5.90 %
Nonearning assets
Allowance for credit losses
(143,950)
(149,398)
(136,419)
Cash and due from banks
204,119
214,678
218,724
Accrued interest and other assets
2,488,549
2,576,086
2,534,049
Total assets
$ 17,306,221
$ 17,124,955
$ 16,942,999
Interest-bearing liabilities
Deposits:
Interest-bearing demand
$ 2,895,768
$ 14,892
2.06 %
$ 2,988,086
$ 14,480
1.92 %
$ 2,906,712
$ 6,604
0.92 %
Savings
4,399,768
29,486
2.69 %
4,235,658
26,632
2.49 %
3,818,807
7,628
0.81 %
Time
2,813,880
31,697
4.52 %
2,611,075
28,081
4.27 %
2,131,707
17,224
3.28 %
Total interest-bearing deposits
10,109,416
76,075
3.02 %
9,834,819
69,193
2.79 %
8,857,226
31,456
1.44 %
Borrowed funds
Short-term borrowings
796,518
10,943
5.51 %
743,633
10,277
5.48 %
1,090,719
12,950
4.82 %
Long-term debt
342,496
4,928
5.77 %
340,321
5,202
6.06 %
343,619
4,857
5.73 %
Total borrowed funds
1,139,014
15,871
5.59 %
1,083,954
15,479
5.67 %
1,434,338
17,807
5.03 %
Total interest-bearing liabilities
11,248,430
91,946
3.28 %
10,918,773
84,672
3.08 %
10,291,564
49,263
1.94 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits
3,169,750
3,368,024
3,954,915
Other liabilities
622,479
693,676
614,310
Shareholders' equity
2,265,562
2,144,482
2,082,210
Total liabilities & shareholders' equity
$ 17,306,221
$ 17,124,955
$ 16,942,999
Net interest income
$ 148,740
$ 153,765
$ 159,318
Net interest spread
3.26 %
3.45 %
3.96 %
Net interest margin
4.05 %
4.21 %
4.51 %
Tax equivalent adjustment
0.05 %
0.05 %
0.04 %
Net interest margin (fully tax equivalent)
4.10 %
4.26 %
4.55 %
(1) Loans held for sale and nonaccrual loans are included in gross loans.
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
Linked Qtr. Income Variance
Comparable Qtr. Income Variance
Rate
Volume
Total
Rate
Volume
Total
Earning assets
Investment securities
$ (1,490)
$ (818)
$ (2,308)
$ 636
$ (4,579)
$ (3,943)
Interest-bearing deposits with other banks
140
(7)
133
693
3,221
3,914
Gross loans (2)
831
3,593
4,424
17,417
14,717
32,134
Total earning assets
(519)
2,768
2,249
18,746
13,359
32,105
Interest-bearing liabilities
Total interest-bearing deposits
$ 5,629
$ 1,253
$ 6,882
$ 34,464
$ 10,155
$ 44,619
Borrowed funds
Short-term borrowings
52
614
666
1,870
(3,877)
(2,007)
Long-term debt
(251)
(23)
(274)
33
38
71
Total borrowed funds
(199)
591
392
1,903
(3,839)
(1,936)
Total interest-bearing liabilities
5,430
1,844
7,274
36,367
6,316
42,683
Net interest income (1)
$ (5,949)
$ 924
$ (5,025)
$ (17,621)
$ 7,043
$ (10,578)
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.
FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
2024
2023
2023
2023
2023
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period
$ 141,433
$ 145,201
$ 148,646
$ 141,591
$ 132,977
Provision for credit losses
13,419
8,804
12,907
12,719
8,644
Gross charge-offs
Commercial and industrial
2,695
6,866
9,207
2,372
730
Lease financing
3
4,244
76
90
13
Construction real estate
0
0
0
0
0
Commercial real estate
5,319
1
6,008
2,648
66
Residential real estate
65
9
10
20
0
Home equity
25
174
54
21
91
Installment
2,236
2,054
1,349
1,515
1,524
Credit card
794
363
319
274
217
Total gross charge-offs
11,137
13,711
17,023
6,940
2,641
Recoveries
Commercial and industrial
162
459
335
631
109
Lease financing
59
52
1
1
1
Construction real estate
0
0
0
0
0
Commercial real estate
38
93
39
153
2,238
Residential real estate
24
24
44
113
66
Home equity
80
178
125
232
80
Installment
145
210
87
90
54
Credit card
51
123
40
56
63
Total recoveries
559
1,139
671
1,276
2,611
Total net charge-offs
10,578
12,572
16,352
5,664
30
Ending allowance for credit losses
$ 144,274
$ 141,433
$ 145,201
$ 148,646
$ 141,591
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial
0.29 %
0.74 %
1.02 %
0.20 %
0.07 %
Lease financing
(0.05) %
3.97 %
0.08 %
0.11 %
0.02 %
Construction real estate
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
Commercial real estate
0.52 %
(0.01) %
0.59 %
0.25 %
(0.22) %
Residential real estate
0.01 %
0.00 %
(0.01) %
(0.03) %
(0.02) %
Home equity
(0.03) %
0.00 %
(0.04) %
(0.12) %
0.01 %
Installment
5.33 %
4.57 %
3.05 %
3.32 %
2.89 %
Credit card
4.59 %
1.49 %
1.82 %
1.47 %
1.12 %
Total net charge-offs
0.38 %
0.46 %
0.61 %
0.22 %
0.00 %
COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans
Commercial and industrial
$ 14,532
$ 15,746
$ 17,152
$ 21,508
$ 13,971
Lease financing
3,794
3,610
7,731
4,833
175
Construction real estate
0
0
0
0
0
Commercial real estate
23,055
27,984
33,019
11,876
5,362
Residential real estate
12,836
14,067
12,328
11,697
11,129
Home equity
4,036
3,476
3,937
3,239
3,399
Installment
984
870
774
568
544
Total nonaccrual loans
59,237
65,753
74,941
53,721
34,580
Other real estate owned (OREO)
161
106
142
281
191
Total nonperforming assets
59,398
65,859
75,083
54,002
34,771
Accruing loans past due 90 days or more
820
2,028
698
873
159
Total underperforming assets
$ 60,218
$ 67,887
$ 75,781
$ 54,875
$ 34,930
Total classified assets
$ 162,348
$ 140,995
$ 140,552
$ 138,909
$ 158,984
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans
243.55 %
215.10 %
193.75 %
276.70 %
409.46 %
Total ending loans
1.29 %
1.29 %
1.36 %
1.41 %
1.36 %
Nonaccrual loans to total loans
0.53 %
0.60 %
0.70 %
0.51 %
0.33 %
Nonperforming assets to
Ending loans, plus OREO
0.53 %
0.60 %
0.71 %
0.51 %
0.33 %
Total assets
0.34 %
0.38 %
0.44 %
0.32 %
0.21 %
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO
0.53 %
0.60 %
0.71 %
0.51 %
0.33 %
Total assets
0.34 %
0.38 %
0.44 %
0.32 %
0.21 %
Classified assets to total assets
0.92 %
0.80 %
0.82 %
0.81 %
0.94 %
FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
2024
2023
2023
2023
2023
PER COMMON SHARE
Market Price
High
$ 23.68
$ 24.28
$ 24.02
$ 22.27
$ 26.24
Low
$ 21.04
$ 17.37
$ 19.19
$ 18.20
$ 21.30
Close
$ 22.42
$ 23.75
$ 19.60
$ 20.44
$ 21.77
Average shares outstanding - basic
94,218,067
94,063,570
94,030,275
93,924,068
93,732,532
Average shares outstanding - diluted
95,183,998
95,126,316
95,126,269
95,169,348
94,960,158
Ending shares outstanding
95,473,595
95,141,244
95,117,180
95,185,483
95,190,406
Total shareholders' equity
$ 2,287,003
$ 2,267,974
$ 2,129,509
$ 2,143,419
$ 2,121,496
REGULATORY CAPITAL
Preliminary
Common equity tier 1 capital
$ 1,582,113
$ 1,568,815
$ 1,527,793
$ 1,481,913
$ 1,432,332
Common equity tier 1 capital ratio
11.67 %
11.73 %
11.60 %
11.34 %
11.00 %
Tier 1 capital
$ 1,626,899
$ 1,613,480
$ 1,572,248
$ 1,526,362
$ 1,476,734
Tier 1 ratio
12.00 %
12.06 %
11.94 %
11.68 %
11.34 %
Total capital
$ 1,940,762
$ 1,907,441
$ 1,868,490
$ 1,851,144
$ 1,796,385
Total capital ratio
14.31 %
14.26 %
14.19 %
14.16 %
13.79 %
Total capital in excess of minimum requirement
$ 516,704
$ 503,152
$ 485,580
$ 478,911
$ 428,700
Total risk-weighted assets
$ 13,562,455
$ 13,374,177
$ 13,170,574
$ 13,068,888
$ 13,025,567
Leverage ratio
9.75 %
9.70 %
9.59 %
9.33 %
9.03 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets
12.99 %
12.94 %
12.49 %
12.54 %
12.53 %
Ending tangible shareholders' equity to ending tangible assets (1)
7.23 %
7.17 %
6.50 %
6.56 %
6.47 %
Average shareholders' equity to average assets
13.09 %
12.52 %
12.70 %
12.60 %
12.29 %
Average tangible shareholders' equity to average tangible assets (1)
7.25 %
6.57 %
6.69 %
6.57 %
6.21 %
REPURCHASE PROGRAM (2)
Shares repurchased
0
0
0
0
0
Average share repurchase price
N/A
N/A
N/A
N/A
N/A
Total cost of shares repurchased
N/A
N/A
N/A
N/A
N/A
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) Represents share repurchases as part of publicly announced plans.