First Financial Bancorp Announces Fourth Quarter and Full Year 2023 Financial Results and Quarterly Dividend
Earnings per diluted share of $0.60; $0.62 on an adjusted(1) basisReturn on average assets of 1.31%; 1.37% on an adjusted(1) basisNet interest margin on FTE basis(1) of 4.26%; 7 bp decrease from linked quarterLoan growth of $286.4 million; 10.7% on an annualized basisAverage deposit balances increased 12.9% on an annualized basisCredit trends stable to improving in the quarterTangible Book Value increased $1.47, or 13.5% from linked quarterQuarterly dividend of $0.23 approved by Board of Directors
CINCINNATI, Jan. 25, 2024 /PRNewswire/ — First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and twelve months ended December 31, 2023.
For the three months ended December 31, 2023, the Company reported net income of $56.7 million, or $0.60 per diluted common share. These results compare to net income of $63.1 million, or $0.66 per diluted common share, for the third quarter of 2023. For the twelve months ended December 31, 2023, First Financial had earnings per diluted share of $2.69 compared to $2.30 for the same period in 2022.
Return on average assets for the fourth quarter of 2023 was 1.31% while return on average tangible common equity was 21.36%(1). These compare to return on average assets of 1.48% and return on average tangible common equity of 23.60%(1) in the third quarter of 2023.
Fourth quarter 2023 highlights include:
Net interest margin of 4.21%, or 4.26% on a fully tax-equivalent basis(1)7 bp decrease to 4.26% from 4.33% in the third quarter due to increasing funding costsHigher asset yields and earning asset mix significantly offset 31 bp increase in cost of depositsAverage deposit balances increased $415.7 million with growth in money market accounts, interest bearing checking accounts, retail CDs and brokered CD’s offsetting declines in noninterest bearing checking and savings accountsNoninterest income of $47.0 million, or $47.6 million as adjusted(1)Bannockburn income of $8.7 million included $4.6 million loss on a trade; loss was offset by lower noninterest expensesStrong leasing business income of $12.9 millionHigher other noninterest income driven by increase in syndication feesAdjusted(1) $0.6 million for losses on investment securities and other items not expected to recurNoninterest expenses of $119.1 million, or $116.8 million as adjusted(1)$2.9 million decrease from linked quarter driven primarily by lower employee costs and marketing expensesFourth quarter adjustments(1) include $0.9 million FDIC special assessment and other costs not expected to recur such as acquisition, severance and branch consolidation costsEfficiency ratio of 59.3%; 58.0% as adjusted(1)
______________________________________________________________________________
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
Accelerating loan growth during the quarterLoan balances increased $286.4 million compared to the third quarterGrowth of 10.7% on an annualized basisCRE, specialty lending, residential mortgages and finance leases drove quarterly growthRobust deposit growth during the quarterTotal deposits increased $445.2 million, or 3.4%, from linked quarterAverage deposit balances increased $415.7 million with growth in money market accounts, interest bearing checking accounts, retail CDs and brokered CD’s offsetting declines in noninterest bearing checking and savings accountsTotal Allowance for Credit Losses of $159.9 million; Total quarterly provision expense of $10.2 millionLoans and leases – ACL of $141.4 million; decreased 7 bps to 1.29% of total loansUnfunded Commitments – ACL of $18.4 million; increased $1.4 million from linked quarterProvision expense driven by net charge-offs and loan growth; Classified assets were stable at $141.0 millionAnnualized net charge-offs were 46 bps of total loans and included $9.2 million related to a single relationship that was previously reserved forCapital ratios remain solidTotal capital ratio increased 24 bps to 13.75%Tier 1 common equity increased 25 bps to 11.85%Tangible common equity increased 67 bps to 7.17%(1); 9.05%(1) excluding impact from AOCITangible book value per share of $12.38(1); 13.5% 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 March 15, 2024 to shareholders of record as of March 1, 2024.
Archie Brown, President and CEO, commented on the quarter, “I am pleased with our fourth quarter performance. Adjusted(1) earnings per share were $0.62, which resulted in an adjusted(1) return on assets of 1.37% and an adjusted(1) return on tangible common equity ratio of 22.2%. As expected, rising funding costs outpaced our asset yields, however our net interest margin remained very strong at 4.26%. Additionally, balance sheet trends were positive during the quarter, with loans increasing $286 million, or 11% on an annualized basis, and average deposits increasing $416 million, or 13% on an annualized basis.”
Mr. Brown continued, “Noninterest income and expenses were both lower than we expected during the quarter. The decline in noninterest income included a $4.6 million loss on a trade at Bannockburn, however excluding this loss, foreign exchange income was within our range of expectations. Leasing income also declined during the period due to lower end of term fees and lease originations shifting to a greater mix of finance leases. While this shift increased interest income and the net interest margin, it resulted in lower noninterest income during the period. Noninterest expenses declined for the quarter primarily due to lower incentive compensation, which is tied directly to noninterest income.”
Mr. Brown commented on asset quality, “Asset quality was stable for the quarter with underlying credit trends improving. Net charge-offs were 46 basis points during the quarter and were driven by a relationship that included borrower fraud. This loan had been on non-accrual for most of the year and was almost fully reserved coming into the fourth quarter. Additionally, nonperforming assets declined by 12% to 0.38% of total assets and classified asset balances were relatively unchanged from the third quarter.”
Mr. Brown discussed full year results, “2023 was a record year for First Financial. Adjusted(1) earnings per share increased 17% from the prior year to $2.77, while adjusted(1) return on assets was 1.55%, adjusted (1) return on tangible common equity was 25.4% and our adjusted(1) efficiency ratio was 56%. Total revenue of $840.2 million was the highest in the Company’s history, increasing 18.5% over the prior year. Our balance sheet responded favorably to the interest rate environment, resulting in a 21% increase in net interest income. Additionally, record years from wealth management and Summit drove a 12% increase in noninterest income.”
Mr. Brown continued, “We are extremely pleased with the performance of our balance sheet during 2023, especially given the turmoil in the banking industry in the first half of the year. Loan production was solid, exceeding 6% in balance growth, while average deposit balances increased 2.4% compared to the prior year. We are also very happy with the 122 basis point expansion in the tangible common equity ratio and 24% increase in tangible book value per share for the year.”
Mr. Brown commented on full year asset quality, “Asset quality trends were elevated during the year. Net charge-offs increased to 33 basis points for 2023, after we achieved a record low of 6 basis points in 2022. This increase was driven by two large relationships, as well as the loss on the sale of a small portfolio of ICRE loans. Non-performing assets to total assets ended the year at 38 basis points. We believe we are well positioned to manage the coming year and we are cautiously optimistic regarding asset quality in 2024.”
Mr. Brown concluded, “Finally, I’d like to commend our associates for their exemplary performance in 2023. They were client focused and executed at a very high level despite the industry uncertainty earlier in the year. During the year we have strengthened our team with the addition of talent in Wealth Management and in expansion markets, including Chicago, IL, Evansville, IN and Cleveland, OH. I’m extremely proud of the work our team accomplished in 2023 and believe we are positioned to have sustained success in 2024 and beyond.”
Full detail of the Company’s fourth quarter 2023 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, January 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 February 9, 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 lossesthe 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; andour 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, 2022, 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 December 31, 2023, the Company had $17.5 billion in assets, $10.9 billion in loans, $13.4 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 $3.5 billion in assets under management as of December 31, 2023. The Company operated 130 full service banking centers as of December 31, 2023, 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,
Twelve months ended,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Dec. 31,
2023
2023
2023
2023
2022
2023
2022
RESULTS OF OPERATIONS
Net income
$ 56,732
$ 63,061
$ 65,667
$ 70,403
$ 69,086
$ 255,863
$ 217,612
Net earnings per share – basic
$ 0.60
$ 0.67
$ 0.70
$ 0.75
$ 0.74
$ 2.72
$ 2.33
Net earnings per share – diluted
$ 0.60
$ 0.66
$ 0.69
$ 0.74
$ 0.73
$ 2.69
$ 2.30
Dividends declared per share
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.92
$ 0.92
KEY FINANCIAL RATIOS
Return on average assets
1.31 %
1.48 %
1.55 %
1.69 %
1.63 %
1.51 %
1.33 %
Return on average shareholders’ equity
10.50 %
11.62 %
12.32 %
13.71 %
13.64 %
12.01 %
10.34 %
Return on average tangible shareholders’ equity (1)
21.36 %
23.60 %
25.27 %
29.02 %
29.93 %
24.72 %
21.62 %
Net interest margin
4.21 %
4.28 %
4.43 %
4.51 %
4.43 %
4.36 %
3.73 %
Net interest margin (fully tax equivalent) (1)(2)
4.26 %
4.33 %
4.48 %
4.55 %
4.47 %
4.40 %
3.77 %
Ending shareholders’ equity as a percent of ending assets
12.94 %
12.49 %
12.54 %
12.53 %
12.01 %
12.94 %
12.01 %
Ending tangible shareholders’ equity as a percent of:
Ending tangible assets (1)
7.17 %
6.50 %
6.56 %
6.47 %
5.95 %
7.17 %
5.95 %
Risk-weighted assets (1)
8.90 %
7.88 %
8.03 %
7.87 %
7.32 %
8.90 %
7.32 %
Average shareholders’ equity as a percent of average assets
12.52 %
12.70 %
12.60 %
12.29 %
11.98 %
12.53 %
12.85 %
Average tangible shareholders’ equity as a percent of
average tangible assets (1)
6.57 %
6.69 %
6.57 %
6.21 %
5.84 %
6.51 %
6.59 %
Book value per share
$ 23.84
$ 22.39
$ 22.52
$ 22.29
$ 21.51
$ 23.84
$ 21.51
Tangible book value per share (1)
$ 12.38
$ 10.91
$ 11.02
$ 10.76
$ 9.97
$ 12.38
$ 9.97
Common equity tier 1 ratio (3)
11.85 %
11.60 %
11.34 %
11.00 %
10.83 %
11.85 %
10.83 %
Tier 1 ratio (3)
12.19 %
11.94 %
11.68 %
11.34 %
11.17 %
12.19 %
11.17 %
Total capital ratio (3)
13.75 %
13.51 %
13.44 %
13.11 %
13.09 %
13.75 %
13.09 %
Leverage ratio (3)
9.70 %
9.59 %
9.33 %
9.03 %
8.89 %
9.70 %
8.89 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$ 10,751,028
$ 10,623,734
$ 10,513,505
$ 10,373,302
$ 10,059,119
$ 10,566,587
$ 9,574,965
Investment securities
3,184,408
3,394,237
3,560,453
3,635,317
3,705,304
3,442,233
4,032,046
Interest-bearing deposits with other banks
548,153
386,173
329,584
318,026
372,054
396,089
314,552
Total earning assets
$ 14,483,589
$ 14,404,144
$ 14,403,542
$ 14,326,645
$ 14,136,477
$ 14,404,909
$ 13,921,563
Total assets
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 16,942,999
$ 16,767,598
$ 16,997,223
$ 16,382,730
Noninterest-bearing deposits
$ 3,368,024
$ 3,493,305
$ 3,663,419
$ 3,954,915
$ 4,225,192
$ 3,617,961
$ 4,196,735
Interest-bearing deposits
9,834,819
9,293,860
9,050,464
8,857,226
8,407,114
9,261,866
8,383,529
Total deposits
$ 13,202,843
$ 12,787,165
$ 12,713,883
$ 12,812,141
$ 12,632,306
$ 12,879,827
$ 12,580,264
Borrowings
$ 1,083,954
$ 1,403,071
$ 1,523,699
$ 1,434,338
$ 1,489,088
$ 1,360,420
$ 1,177,013
Shareholders’ equity
$ 2,144,482
$ 2,153,601
$ 2,137,765
$ 2,082,210
$ 2,009,564
$ 2,129,751
$ 2,105,339
CREDIT QUALITY RATIOS
Allowance to ending loans
1.29 %
1.36 %
1.41 %
1.36 %
1.29 %
1.29 %
1.29 %
Allowance to nonaccrual loans
215.10 %
193.75 %
276.70 %
409.46 %
464.58 %
215.10 %
464.58 %
Allowance to nonperforming loans
215.10 %
193.75 %
276.70 %
409.46 %
335.94 %
215.10 %
335.94 %
Nonperforming loans to total loans
0.60 %
0.70 %
0.51 %
0.33 %
0.38 %
0.60 %
0.38 %
Nonaccrual loans to total loans
0.60 %
0.70 %
0.51 %
0.33 %
0.28 %
0.60 %
0.28 %
Nonperforming assets to ending loans, plus OREO
0.60 %
0.71 %
0.51 %
0.33 %
0.39 %
0.60 %
0.39 %
Nonperforming assets to total assets
0.38 %
0.44 %
0.32 %
0.21 %
0.23 %
0.38 %
0.23 %
Classified assets to total assets
0.80 %
0.82 %
0.81 %
0.94 %
0.75 %
0.80 %
0.75 %
Net charge-offs to average loans (annualized)
0.46 %
0.61 %
0.22 %
0.00 %
(0.01) %
0.33 %
0.06 %
(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) December 31, 2023 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,
Twelve months ended,
Dec. 31,
Dec. 31,
2023
2022
% Change
2023
2022
% Change
Interest income
Loans and leases, including fees
$ 197,416
$ 152,299
29.6 %
$ 743,770
$ 458,742
62.1 %
Investment securities
Taxable
30,294
30,248
0.2 %
125,520
102,314
22.7 %
Tax-exempt
3,402
4,105
(17.1) %
13,901
18,466
(24.7) %
Total investment securities interest
33,696
34,353
(1.9) %
139,421
120,780
15.4 %
Other earning assets
7,325
3,262
124.6 %
19,813
5,484
261.3 %
Total interest income
238,437
189,914
25.5 %
903,004
585,006
54.4 %
Interest expense
Deposits
69,193
16,168
328.0 %
202,010
28,140
617.9 %
Short-term borrowings
10,277
11,091
(7.3) %
53,378
19,132
179.0 %
Long-term borrowings
5,202
4,759
9.3 %
19,846
18,591
6.8 %
Total interest expense
84,672
32,018
164.5 %
275,234
65,863
317.9 %
Net interest income
153,765
157,896
(2.6) %
627,770
519,143
20.9 %
Provision for credit losses-loans and leases
8,804
8,689
1.3 %
43,074
6,731
539.9 %
Provision for credit losses-unfunded commitments
1,426
1,341
6.3 %
33
4,982
(99.3) %
Net interest income after provision for credit losses
143,535
147,866
(2.9) %
584,663
507,430
15.2 %
Noninterest income
Service charges on deposit accounts
6,846
6,406
6.9 %
27,289
28,062
(2.8) %
Wealth management fees
6,091
5,648
7.8 %
26,081
23,506
11.0 %
Bankcard income
3,349
3,736
(10.4) %
14,039
14,380
(2.4) %
Client derivative fees
711
1,822
(61.0) %
5,155
5,441
(5.3) %
Foreign exchange income
8,730
19,592
(55.4) %
54,051
54,965
(1.7) %
Leasing business income
12,856
11,124
15.6 %
51,322
31,574
62.5 %
Net gains from sales of loans
2,957
2,206
34.0 %
13,217
15,048
(12.2) %
Net gain (loss) on sale of investment securities
(851)
(393)
116.5 %
(1,258)
(569)
121.1 %
Net gain (loss) on equity securities
202
1,315
(84.6) %
206
(639)
(132.2) %
Other
6,102
4,579
33.3 %
22,320
17,873
24.9 %
Total noninterest income
46,993
56,035
(16.1) %
212,422
189,641
12.0 %
Noninterest expenses
Salaries and employee benefits
70,637
73,621
(4.1) %
292,731
269,368
8.7 %
Net occupancy
5,890
5,434
8.4 %
22,990
22,208
3.5 %
Furniture and equipment
3,523
3,234
8.9 %
13,543
13,224
2.4 %
Data processing
8,488
8,567
(0.9) %
35,852
33,662
6.5 %
Marketing
2,087
2,198
(5.1) %
9,647
8,744
10.3 %
Communication
707
690
2.5 %
2,729
2,683
1.7 %
Professional services
3,148
3,015
4.4 %
9,926
9,734
2.0 %
State intangible tax
984
974
1.0 %
3,914
4,285
(8.7) %
FDIC assessments
3,651
2,173
68.0 %
11,948
7,194
66.1 %
Intangible amortization
2,601
2,573
1.1 %
10,402
11,185
(7.0) %
Leasing business expense
8,955
6,061
47.7 %
32,500
20,363
59.6 %
Other
8,466
15,902
(46.8) %
32,307
52,699
(38.7) %
Total noninterest expenses
119,137
124,442
(4.3) %
478,489
455,349
5.1 %
Income before income taxes
71,391
79,459
(10.2) %
318,596
241,722
31.8 %
Income tax expense (benefit)
14,659
10,373
41.3 %
62,733
24,110
160.2 %
Net income
$ 56,732
$ 69,086
(17.9) %
$ 255,863
$ 217,612
17.6 %
ADDITIONAL DATA
Net earnings per share – basic
$ 0.60
$ 0.74
$ 2.72
$ 2.33
Net earnings per share – diluted
$ 0.60
$ 0.73
$ 2.69
$ 2.30
Dividends declared per share
$ 0.23
$ 0.23
$ 0.92
$ 0.92
Return on average assets
1.31 %
1.63 %
1.51 %
1.33 %
Return on average shareholders’ equity
10.50 %
13.64 %
12.01 %
10.34 %
Interest income
$ 238,437
$ 189,914
25.5 %
$ 903,004
$ 585,006
54.4 %
Tax equivalent adjustment
1,672
1,553
7.7 %
6,356
6,357
0.0 %
Interest income – tax equivalent
240,109
191,467
25.4 %
909,360
591,363
53.8 %
Interest expense
84,672
32,018
164.5 %
275,234
65,863
317.9 %
Net interest income – tax equivalent
$ 155,437
$ 159,449
(2.5) %
$ 634,126
$ 525,500
20.7 %
Net interest margin
4.21 %
4.43 %
4.36 %
3.73 %
Net interest margin (fully tax equivalent) (1)
4.26 %
4.47 %
4.40 %
3.77 %
Full-time equivalent employees
2,129
2,070
(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)
2023
Fourth
Third
Second
First
Year to
% Change
Quarter
Quarter
Quarter
Quarter
Date
Linked Qtr.
Interest income
Loans and leases, including fees
$ 197,416
$ 192,261
$ 184,387
$ 169,706
$ 743,770
2.7 %
Investment securities
Taxable
30,294
31,297
32,062
31,867
125,520
(3.2) %
Tax-exempt
3,402
3,522
3,513
3,464
13,901
(3.4) %
Total investment securities interest
33,696
34,819
35,575
35,331
139,421
(3.2) %
Other earning assets
7,325
5,011
3,933
3,544
19,813
46.2 %
Total interest income
238,437
232,091
223,895
208,581
903,004
2.7 %
Interest expense
Deposits
69,193
57,069
44,292
31,456
202,010
21.2 %
Short-term borrowings
10,277
14,615
15,536
12,950
53,378
(29.7) %
Long-term borrowings
5,202
4,952
4,835
4,857
19,846
5.0 %
Total interest expense
84,672
76,636
64,663
49,263
275,234
10.5 %
Net interest income
153,765
155,455
159,232
159,318
627,770
(1.1) %
Provision for credit losses-loans and leases
8,804
12,907
12,719
8,644
43,074
(31.8) %
Provision for credit losses-unfunded commitments
1,426
(1,234)
(1,994)
1,835
33
(215.6) %
Net interest income after provision for credit losses
143,535
143,782
148,507
148,839
584,663
(0.2) %
Noninterest income
Service charges on deposit accounts
6,846
6,957
6,972
6,514
27,289
(1.6) %
Wealth management fees
6,091
6,943
6,713
6,334
26,081
(12.3) %
Bankcard income
3,349
3,406
3,692
3,592
14,039
(1.7) %
Client derivative fees
711
1,612
1,827
1,005
5,155
(55.9) %
Foreign exchange income
8,730
13,384
15,039
16,898
54,051
(34.8) %
Leasing business income
12,856
14,537
10,265
13,664
51,322
(11.6) %
Net gains from sales of loans
2,957
4,086
3,839
2,335
13,217
(27.6) %
Net gain (loss) on sale of investment securities
(851)
(4)
(384)
(19)
(1,258)
N/M
Net gain (loss) on equity securities
202
(54)
(82)
140
206
474.1 %
Other
6,102
5,761
5,377
5,080
22,320
5.9 %
Total noninterest income
46,993
56,628
53,258
55,543
212,422
(17.0) %
Noninterest expenses
Salaries and employee benefits
70,637
75,641
74,199
72,254
292,731
(6.6) %
Net occupancy
5,890
5,809
5,606
5,685
22,990
1.4 %
Furniture and equipment
3,523
3,341
3,362
3,317
13,543
5.4 %
Data processing
8,488
8,473
9,871
9,020
35,852
0.2 %
Marketing
2,087
2,598
2,802
2,160
9,647
(19.7) %
Communication
707
744
644
634
2,729
(5.0) %
Professional services
3,148
2,524
2,308
1,946
9,926
24.7 %
State intangible tax
984
981
964
985
3,914
0.3 %
FDIC assessments
3,651
2,665
2,806
2,826
11,948
37.0 %
Intangible amortization
2,601
2,600
2,601
2,600
10,402
0.0 %
Leasing business expense
8,955
8,877
6,730
7,938
32,500
0.9 %
Other
8,466
7,791
8,722
7,328
32,307
8.7 %
Total noninterest expenses
119,137
122,044
120,615
116,693
478,489
(2.4) %
Income before income taxes
71,391
78,366
81,150
87,689
318,596
(8.9) %
Income tax expense (benefit)
14,659
15,305
15,483
17,286
62,733
(4.2) %
Net income
$ 56,732
$ 63,061
$ 65,667
$ 70,403
$ 255,863
(10.0) %
ADDITIONAL DATA
Net earnings per share – basic
$ 0.60
$ 0.67
$ 0.70
$ 0.75
$ 2.72
Net earnings per share – diluted
$ 0.60
$ 0.66
$ 0.69
$ 0.74
$ 2.69
Dividends declared per share
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.92
Return on average assets
1.31 %
1.48 %
1.55 %
1.69 %
1.51 %
Return on average shareholders’ equity
10.50 %
11.62 %
12.32 %
13.71 %
12.01 %
Interest income
$ 238,437
$ 232,091
$ 223,895
$ 208,581
$ 903,004
2.7 %
Tax equivalent adjustment
1,672
1,659
1,601
1,424
6,356
0.8 %
Interest income – tax equivalent
240,109
233,750
225,496
210,005
909,360
2.7 %
Interest expense
84,672
76,636
64,663
49,263
275,234
10.5 %
Net interest income – tax equivalent
$ 155,437
$ 157,114
$ 160,833
$ 160,742
$ 634,126
(1.1) %
Net interest margin
4.21 %
4.28 %
4.43 %
4.51 %
4.36 %
Net interest margin (fully tax equivalent) (1)
4.26 %
4.33 %
4.48 %
4.55 %
4.40 %
Full-time equivalent employees
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 QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2022
Fourth
Third
Second
First
Full
Quarter
Quarter
Quarter
Quarter
Year
Interest income
Loans and leases, including fees
$ 152,299
$ 122,170
$ 97,091
$ 87,182
$ 458,742
Investment securities
Taxable
30,248
26,331
23,639
22,096
102,314
Tax-exempt
4,105
5,014
4,916
4,431
18,466
Total investment securities interest
34,353
31,345
28,555
26,527
120,780
Other earning assets
3,262
1,597
505
120
5,484
Total interest income
189,914
155,112
126,151
113,829
585,006
Interest expense
Deposits
16,168
6,386
2,963
2,623
28,140
Short-term borrowings
11,091
6,158
1,566
317
19,132
Long-term borrowings
4,759
4,676
4,612
4,544
18,591
Total interest expense
32,018
17,220
9,141
7,484
65,863
Net interest income
157,896
137,892
117,010
106,345
519,143
Provision for credit losses-loans and leases
8,689
7,898
(4,267)
(5,589)
6,731
Provision for credit losses-unfunded commitments
1,341
386
3,481
(226)
4,982
Net interest income after provision for credit losses
147,866
129,608
117,796
112,160
507,430
Noninterest income
Service charges on deposit accounts
6,406
6,279
7,648
7,729
28,062
Wealth management fees
5,648
5,487
6,311
6,060
23,506
Bankcard income
3,736
3,484
3,823
3,337
14,380
Client derivative fees
1,822
1,447
1,369
803
5,441
Foreign exchange income
19,592
11,752
13,470
10,151
54,965
Leasing business income
11,124
7,127
7,247
6,076
31,574
Net gains from sales of loans
2,206
3,729
5,241
3,872
15,048
Net gain (loss) on sale of investment securities
(393)
(179)
0
3
(569)
Net gain (loss) on equity securities
1,315
(701)
(1,054)
(199)
(639)
Other
4,579
4,109
5,723
3,462
17,873
Total noninterest income
56,035
42,534
49,778
41,294
189,641
Noninterest expenses
Salaries and employee benefits
73,621
66,808
64,992
63,947
269,368
Net occupancy
5,434
5,669
5,359
5,746
22,208
Furniture and equipment
3,234
3,222
3,201
3,567
13,224
Data processing
8,567
8,497
8,334
8,264
33,662
Marketing
2,198
2,523
2,323
1,700
8,744
Communication
690
657
670
666
2,683
Professional services
3,015
2,346
2,214
2,159
9,734
State intangible tax
974
1,090
1,090
1,131
4,285
FDIC assessments
2,173
1,885
1,677
1,459
7,194
Intangible amortization
2,573
2,783
2,915
2,914
11,185
Leasing business expense
6,061
5,746
4,687
3,869
20,363
Other
15,902
23,842
5,572
7,383
52,699
Total noninterest expenses
124,442
125,068
103,034
102,805
455,349
Income before income taxes
79,459
47,074
64,540
50,649
241,722
Income tax expense (benefit)
10,373
(8,631)
13,020
9,348
24,110
Net income
$ 69,086
$ 55,705
$ 51,520
$ 41,301
$ 217,612
ADDITIONAL DATA
Net earnings per share – basic
$ 0.74
$ 0.60
$ 0.55
$ 0.44
$ 2.33
Net earnings per share – diluted
$ 0.73
$ 0.59
$ 0.55
$ 0.44
$ 2.30
Dividends declared per share
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.92
Return on average assets
1.63 %
1.35 %
1.28 %
1.03 %
1.33 %
Return on average shareholders’ equity
13.64 %
10.58 %
9.84 %
7.53 %
10.34 %
Interest income
$ 189,914
$ 155,112
$ 126,151
$ 113,829
$ 585,006
Tax equivalent adjustment
1,553
1,712
1,625
1,467
6,357
Interest income – tax equivalent
191,467
156,824
127,776
115,296
591,363
Interest expense
32,018
17,220
9,141
7,484
65,863
Net interest income – tax equivalent
$ 159,449
$ 139,604
$ 118,635
$ 107,812
$ 525,500
Net interest margin
4.43 %
3.93 %
3.41 %
3.11 %
3.73 %
Net interest margin (fully tax equivalent) (1)
4.47 %
3.98 %
3.45 %
3.16 %
3.77 %
Full-time equivalent employees
2,070
2,072
2,096
2,050
(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)
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
% Change
% Change
2023
2023
2023
2023
2022
Linked Qtr.
Comp Qtr.
ASSETS
Cash and due from banks
$ 213,059
$ 220,335
$ 217,385
$ 199,835
$ 207,501
(3.3) %
2.7 %
Interest-bearing deposits with other banks
792,960
452,867
485,241
305,465
388,182
75.1 %
104.3 %
Investment securities available-for-sale
3,021,126
3,044,361
3,249,404
3,384,949
3,409,648
(0.8) %
(11.4) %
Investment securities held-to-maturity
80,321
81,236
82,372
83,070
84,021
(1.1) %
(4.4) %
Other investments
129,945
133,725
141,892
143,606
143,160
(2.8) %
(9.2) %
Loans held for sale
9,213
12,391
15,267
9,280
7,918
(25.6) %
16.4 %
Loans and leases
Commercial and industrial
3,501,221
3,420,873
3,433,162
3,449,289
3,410,272
2.3 %
2.7 %
Lease financing
474,817
399,973
360,801
273,898
236,124
18.7 %
101.1 %
Construction real estate
564,832
578,824
536,464
525,906
512,050
(2.4) %
10.3 %
Commercial real estate
4,080,939
3,992,654
4,048,460
4,056,627
4,052,759
2.2 %
0.7 %
Residential real estate
1,333,674
1,293,470
1,221,484
1,145,069
1,092,265
3.1 %
22.1 %
Home equity
758,676
743,991
728,711
724,672
733,791
2.0 %
3.4 %
Installment
159,078
160,648
165,216
204,372
209,895
(1.0) %
(24.2) %
Credit card
59,939
56,386
55,911
53,552
51,815
6.3 %
15.7 %
Total loans
10,933,176
10,646,819
10,550,209
10,433,385
10,298,971
2.7 %
6.2 %
Less:
Allowance for credit losses
(141,433)
(145,201)
(148,646)
(141,591)
(132,977)
(2.6) %
6.4 %
Net loans
10,791,743
10,501,618
10,401,563
10,291,794
10,165,994
2.8 %
6.2 %
Premises and equipment
194,740
192,572
192,077
188,959
189,080
1.1 %
3.0 %
Operating leases
153,214
136,883
132,272
153,986
91,738
11.9 %
67.0 %
Goodwill
1,005,868
1,005,868
1,005,828
1,005,738
1,001,507
0.0 %
0.4 %
Other intangibles
83,949
86,378
88,662
91,169
93,919
(2.8) %
(10.6) %
Accrued interest and other assets
1,056,762
1,186,618
1,078,186
1,076,033
1,220,648
(10.9) %
(13.4) %
Total Assets
$ 17,532,900
$ 17,054,852
$ 17,090,149
$ 16,933,884
$ 17,003,316
2.8 %
3.1 %
LIABILITIES
Deposits
Interest-bearing demand
$ 2,993,219
$ 2,880,617
$ 2,919,472
$ 2,761,811
$ 3,037,153
3.9 %
(1.4) %
Savings
4,331,228
4,023,455
3,785,445
3,746,403
3,828,139
7.6 %
13.1 %
Time
2,718,390
2,572,909
2,484,780
2,336,368
1,700,705
5.7 %
59.8 %
Total interest-bearing deposits
10,042,837
9,476,981
9,189,697
8,844,582
8,565,997
6.0 %
17.2 %
Noninterest-bearing
3,317,960
3,438,572
3,605,181
3,830,102
4,135,180
(3.5) %
(19.8) %
Total deposits
13,360,797
12,915,553
12,794,878
12,674,684
12,701,177
3.4 %
5.2 %
FHLB short-term borrowings
800,000
755,000
1,050,300
1,089,400
1,130,000
6.0 %
(29.2) %
Other
137,814
219,188
165,983
128,160
157,156
(37.1) %
(12.3) %
Total short-term borrowings
937,814
974,188
1,216,283
1,217,560
1,287,156
(3.7) %
(27.1) %
Long-term debt
344,115
340,902
339,963
342,647
346,672
0.9 %
(0.7) %
Total borrowed funds
1,281,929
1,315,090
1,556,246
1,560,207
1,633,828
(2.5) %
(21.5) %
Accrued interest and other liabilities
622,200
694,700
595,606
577,497
626,938
(10.4) %
(0.8) %
Total Liabilities
15,264,926
14,925,343
14,946,730
14,812,388
14,961,943
2.3 %
2.0 %
SHAREHOLDERS’ EQUITY
Common stock
1,638,972
1,636,054
1,632,659
1,629,428
1,634,605
0.2 %
0.3 %
Retained earnings
1,136,718
1,101,905
1,060,715
1,016,893
968,237
3.2 %
17.4 %
Accumulated other comprehensive income (loss)
(309,819)
(410,005)
(353,010)
(328,059)
(358,663)
(24.4) %
(13.6) %
Treasury stock, at cost
(197,897)
(198,445)
(196,945)
(196,766)
(202,806)
(0.3) %
(2.4) %
Total Shareholders’ Equity
2,267,974
2,129,509
2,143,419
2,121,496
2,041,373
6.5 %
11.1 %
Total Liabilities and Shareholders’ Equity
$ 17,532,900
$ 17,054,852
$ 17,090,149
$ 16,933,884
$ 17,003,316
2.8 %
3.1 %
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Year-to-Date Averages
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Dec. 31,
2023
2023
2023
2023
2022
2023
2022
ASSETS
Cash and due from banks
$ 214,678
$ 211,670
$ 221,527
$ 218,724
$ 218,216
$ 216,625
$ 233,925
Interest-bearing deposits with other banks
548,153
386,173
329,584
318,026
372,054
396,089
314,552
Investment securities
3,184,408
3,394,237
3,560,453
3,635,317
3,705,304
3,442,233
4,032,046
Loans held for sale
12,547
15,420
11,856
5,531
8,639
11,369
12,968
Loans and leases
Commercial and industrial
3,422,381
3,443,615
3,469,683
3,456,681
3,249,252
3,447,984
2,979,273
Lease financing
419,179
371,598
323,819
252,219
203,790
342,243
153,380
Construction real estate
540,314
547,884
518,190
536,294
501,787
535,715
476,597
Commercial real estate
4,060,733
4,024,798
4,050,946
4,017,021
4,028,944
4,038,457
4,040,365
Residential real estate
1,320,670
1,260,249
1,181,053
1,115,889
1,066,859
1,220,138
976,775
Home equity
750,925
735,251
726,333
728,185
735,039
735,236
721,048
Installment
160,242
164,092
172,147
205,934
208,484
175,447
159,807
Credit card
64,037
60,827
59,478
55,548
56,325
59,998
54,752
Total loans
10,738,481
10,608,314
10,501,649
10,367,771
10,050,480
10,555,218
9,561,997
Less:
Allowance for credit losses
(149,398)
(150,297)
(145,578)
(136,419)
(127,541)
(145,472)
(125,001)
Net loans
10,589,083
10,458,017
10,356,071
10,231,352
9,922,939
10,409,746
9,436,996
Premises and equipment
194,435
194,228
190,583
190,346
189,342
192,414
191,191
Operating leases
139,331
132,984
138,725
107,092
88,365
129,631
76,967
Goodwill
1,005,870
1,005,844
1,005,791
1,005,713
998,575
1,005,805
999,611
Other intangibles
85,101
87,427
89,878
92,587
95,256
88,724
99,081
Accrued interest and other assets
1,151,349
1,065,389
1,063,587
1,138,311
1,168,908
1,104,587
985,393
Total Assets
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 16,942,999
$ 16,767,598
$ 16,997,223
$ 16,382,730
LIABILITIES
Deposits
Interest-bearing demand
$ 2,988,086
$ 2,927,416
$ 2,906,855
$ 2,906,712
$ 3,103,091
$ 2,932,477
$ 3,158,560
Savings
4,235,658
3,919,590
3,749,902
3,818,807
3,943,342
3,932,100
4,049,883
Time
2,611,075
2,446,854
2,393,707
2,131,707
1,360,681
2,397,289
1,175,086
Total interest-bearing deposits
9,834,819
9,293,860
9,050,464
8,857,226
8,407,114
9,261,866
8,383,529
Noninterest-bearing
3,368,024
3,493,305
3,663,419
3,954,915
4,225,192
3,617,961
4,196,735
Total deposits
13,202,843
12,787,165
12,713,883
12,812,141
12,632,306
12,879,827
12,580,264
Federal funds purchased and securities sold
under agreements to repurchase
3,586
10,788
21,881
26,380
16,167
15,583
29,526
FHLB short-term borrowings
554,826
878,199
1,028,207
925,144
944,320
845,666
672,928
Other
185,221
175,682
132,088
139,195
184,439
158,221
115,041
Total short-term borrowings
743,633
1,064,669
1,182,176
1,090,719
1,144,926
1,019,470
817,495
Long-term debt
340,321
338,402
341,523
343,619
344,162
340,950
359,518
Total borrowed funds
1,083,954
1,403,071
1,523,699
1,434,338
1,489,088
1,360,420
1,177,013
Accrued interest and other liabilities
693,676
607,552
592,708
614,310
636,640
627,225
520,114
Total Liabilities
14,980,473
14,797,788
14,830,290
14,860,789
14,758,034
14,867,472
14,277,391
SHAREHOLDERS’ EQUITY
Common stock
1,637,197
1,634,102
1,631,230
1,633,396
1,632,941
1,633,992
1,634,558
Retained earnings
1,111,786
1,076,515
1,034,092
989,777
941,987
1,053,441
887,826
Accumulated other comprehensive loss
(406,265)
(358,769)
(330,263)
(339,450)
(361,284)
(358,870)
(207,778)
Treasury stock, at cost
(198,236)
(198,247)
(197,294)
(201,513)
(204,080)
(198,812)
(209,267)
Total Shareholders’ Equity
2,144,482
2,153,601
2,137,765
2,082,210
2,009,564
2,129,751
2,105,339
Total Liabilities and Shareholders’ Equity
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 16,942,999
$ 16,767,598
$ 16,997,223
$ 16,382,730
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Year-to-Date Averages
December 31, 2023
September 30, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Balance
Interest
Yield
Balance
Interest
Yield
Balance
Interest
Yield
Balance
Yield
Balance
Yield
Earning assets
Investments:
Investment securities
$ 3,184,408
$ 33,696
4.20 %
$ 3,394,237
$ 34,819
4.07 %
$ 3,705,304
$ 34,353
3.68 %
$ 3,442,233
4.05 %
$ 4,032,046
3.00 %
Interest-bearing deposits with other banks
548,153
7,325
5.30 %
386,173
5,011
5.15 %
372,054
3,262
3.48 %
396,089
5.00 %
314,552
1.74 %
Gross loans (1)
10,751,028
197,416
7.29 %
10,623,734
192,261
7.18 %
10,059,119
152,299
6.01 %
10,566,587
7.04 %
9,574,965
4.79 %
Total earning assets
14,483,589
238,437
6.53 %
14,404,144
232,091
6.39 %
14,136,477
189,914
5.33 %
14,404,909
6.27 %
13,921,563
4.20 %
Nonearning assets
Allowance for credit losses
(149,398)
(150,297)
(127,541)
(145,472)
(125,001)
Cash and due from banks
214,678
211,670
218,216
216,625
233,925
Accrued interest and other assets
2,576,086
2,485,872
2,540,446
2,521,161
2,352,243
Total assets
$ 17,124,955
$ 16,951,389
$ 16,767,598
$ 16,997,223
$ 16,382,730
Interest-bearing liabilities
Deposits:
Interest-bearing demand
$ 2,988,086
$ 14,480
1.92 %
$ 2,927,416
$ 12,953
1.76 %
$ 3,103,091
$ 5,195
0.66 %
$ 2,932,477
1.45 %
$ 3,158,560
0.28 %
Savings
4,235,658
26,632
2.49 %
3,919,590
19,853
2.01 %
3,943,342
4,819
0.48 %
3,932,100
1.73 %
4,049,883
0.22 %
Time
2,611,075
28,081
4.27 %
2,446,854
24,263
3.93 %
1,360,681
6,154
1.79 %
2,397,289
3.81 %
1,175,086
0.88 %
Total interest-bearing deposits
9,834,819
69,193
2.79 %
9,293,860
57,069
2.44 %
8,407,114
16,168
0.76 %
9,261,866
2.18 %
8,383,529
0.34 %
Borrowed funds
Short-term borrowings
743,633
10,277
5.48 %
1,064,669
14,615
5.45 %
1,144,926
11,091
3.84 %
1,019,470
5.24 %
817,495
2.34 %
Long-term debt
340,321
5,202
6.06 %
338,402
4,952
5.81 %
344,162
4,759
5.49 %
340,950
5.82 %
359,518
5.17 %
Total borrowed funds
1,083,954
15,479
5.67 %
1,403,071
19,567
5.53 %
1,489,088
15,850
4.22 %
1,360,420
5.38 %
1,177,013
3.20 %
Total interest-bearing liabilities
10,918,773
84,672
3.08 %
10,696,931
76,636
2.84 %
9,896,202
32,018
1.28 %
10,622,286
2.59 %
9,560,542
0.69 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits
3,368,024
3,493,305
4,225,192
3,617,961
4,196,735
Other liabilities
693,676
607,552
636,640
627,225
520,114
Shareholders’ equity
2,144,482
2,153,601
2,009,564
2,129,751
2,105,339
Total liabilities & shareholders’ equity
$ 17,124,955
$ 16,951,389
$ 16,767,598
$ 16,997,223
$ 16,382,730
Net interest income
$ 153,765
$ 155,455
$ 157,896
$ 627,770
$ 519,143
Net interest spread
3.45 %
3.55 %
4.05 %
3.68 %
3.51 %
Net interest margin
4.21 %
4.28 %
4.43 %
4.36 %
3.73 %
Tax equivalent adjustment
0.05 %
0.05 %
0.04 %
0.04 %
0.04 %
Net interest margin (fully tax equivalent)
4.26 %
4.33 %
4.47 %
4.40 %
3.77 %
(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
$ 1,097
$ (2,220)
$ (1,123)
$ 4,855
$ (5,512)
$ (657)
$ 42,530
$ (23,889)
$ 18,641
Interest-bearing deposits with other banks
149
2,165
2,314
1,710
2,353
4,063
10,250
4,079
14,329
Gross loans (2)
2,818
2,337
5,155
32,412
12,705
45,117
215,229
69,799
285,028
Total earning assets
4,064
2,282
6,346
38,977
9,546
48,523
268,009
49,989
317,998
Interest-bearing liabilities
Total interest-bearing deposits
$ 8,318
$ 3,806
$ 12,124
$ 42,980
$ 10,045
$ 53,025
$ 154,713
$ 19,157
$ 173,870
Borrowed funds
Short-term borrowings
99
(4,437)
(4,338)
4,732
(5,546)
(814)
23,671
10,575
34,246
Long-term debt
221
29
250
502
(59)
443
2,336
(1,081)
1,255
Total borrowed funds
320
(4,408)
(4,088)
5,234
(5,605)
(371)
26,007
9,494
35,501
Total interest-bearing liabilities
8,638
(602)
8,036
48,214
4,440
52,654
180,720
28,651
209,371
Net interest income (1)
$ (4,574)
$ 2,884
$ (1,690)
$ (9,237)
$ 5,106
$ (4,131)
$ 87,289
$ 21,338
$ 108,627
(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)
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Full Year
Full Year
2023
2023
2023
2023
2022
2023
2022
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period
$ 145,201
$ 148,646
$ 141,591
$ 132,977
$ 124,096
$ 132,977
$ 131,992
Provision for credit losses
8,804
12,907
12,719
8,644
8,689
43,074
6,731
Gross charge-offs
Commercial and industrial
6,866
9,207
2,372
730
334
19,175
5,899
Lease financing
4,244
76
90
13
0
4,423
152
Construction real estate
0
0
0
0
0
0
0
Commercial real estate
1
6,008
2,648
66
245
8,723
3,667
Residential real estate
9
10
20
0
79
39
224
Home equity
174
54
21
91
72
340
160
Installment
2,054
1,349
1,515
1,524
717
6,442
1,549
Credit card
363
319
274
217
212
1,173
907
Total gross charge-offs
13,711
17,023
6,940
2,641
1,659
40,315
12,558
Recoveries
Commercial and industrial
459
335
631
109
293
1,534
939
Lease financing
52
1
1
1
0
55
49
Construction real estate
0
0
0
0
0
0
0
Commercial real estate
93
39
153
2,238
1,327
2,523
4,304
Residential real estate
24
44
113
66
15
247
174
Home equity
178
125
232
80
88
615
898
Installment
210
87
90
54
68
441
165
Credit card
123
40
56
63
60
282
283
Total recoveries
1,139
671
1,276
2,611
1,851
5,697
6,812
Total net charge-offs
12,572
16,352
5,664
30
(192)
34,618
5,746
Ending allowance for credit losses
$ 141,433
$ 145,201
$ 148,646
$ 141,591
$ 132,977
$ 141,433
$ 132,977
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial
0.74 %
1.02 %
0.20 %
0.07 %
0.01 %
0.51 %
0.17 %
Lease financing
3.97 %
0.08 %
0.11 %
0.02 %
0.00 %
1.28 %
0.07 %
Construction real estate
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
Commercial real estate
(0.01) %
0.59 %
0.25 %
(0.22) %
(0.11) %
0.15 %
(0.02) %
Residential real estate
0.00 %
(0.01) %
(0.03) %
(0.02) %
0.02 %
(0.02) %
0.01 %
Home equity
0.00 %
(0.04) %
(0.12) %
0.01 %
(0.01) %
(0.04) %
(0.10) %
Installment
4.57 %
3.05 %
3.32 %
2.89 %
1.24 %
3.42 %
0.87 %
Credit card
1.49 %
1.82 %
1.47 %
1.12 %
1.07 %
1.49 %
1.14 %
Total net charge-offs
0.46 %
0.61 %
0.22 %
0.00 %
(0.01) %
0.33 %
0.06 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial
$ 15,746
$ 17,152
$ 21,508
$ 13,971
$ 8,242
$ 15,746
$ 8,242
Lease financing
3,610
7,731
4,833
175
178
3,610
178
Construction real estate
0
0
0
0
0
0
0
Commercial real estate
27,984
33,019
11,876
5,362
5,786
27,984
5,786
Residential real estate
14,067
12,328
11,697
11,129
10,691
14,067
10,691
Home equity
3,476
3,937
3,239
3,399
3,123
3,476
3,123
Installment
870
774
568
544
603
870
603
Nonaccrual loans
65,753
74,941
53,721
34,580
28,623
65,753
28,623
Accruing troubled debt restructurings (TDRs) (2)
N/A
N/A
N/A
N/A
10,960
N/A
10,960
Total nonperforming loans (2)
65,753
74,941
53,721
34,580
39,583
65,753
39,583
Other real estate owned (OREO)
106
142
281
191
191
106
191
Total nonperforming assets (2)
65,859
75,083
54,002
34,771
39,774
65,859
39,774
Accruing loans past due 90 days or more
2,028
698
873
159
857
2,028
857
Total underperforming assets (2)
$ 67,887
$ 75,781
$ 54,875
$ 34,930
$ 40,631
$ 67,887
$ 40,631
Total classified assets (2)
$ 140,995
$ 140,552
$ 138,909
$ 158,984
$ 128,137
$ 140,995
$ 128,137
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans
215.10 %
193.75 %
276.70 %
409.46 %
464.58 %
215.10 %
464.58 %
Nonperforming loans
215.10 %
193.75 %
276.70 %
409.46 %
335.94 %
215.10 %
335.94 %
Total ending loans
1.29 %
1.36 %
1.41 %
1.36 %
1.29 %
1.29 %
1.29 %
Nonperforming loans to total loans
0.60 %
0.70 %
0.51 %
0.33 %
0.38 %
0.60 %
0.38 %
Nonaccrual loans to total loans
0.60 %
0.70 %
0.51 %
0.33 %
0.28 %
0.60 %
0.28 %
Nonperforming assets to
Ending loans, plus OREO
0.60 %
0.71 %
0.51 %
0.33 %
0.39 %
0.60 %
0.39 %
Total assets
0.38 %
0.44 %
0.32 %
0.21 %
0.23 %
0.38 %
0.23 %
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO
0.60 %
0.71 %
0.51 %
0.33 %
0.28 %
0.60 %
0.28 %
Total assets
0.38 %
0.44 %
0.32 %
0.21 %
0.17 %
0.38 %
0.17 %
Classified assets to total assets
0.80 %
0.82 %
0.81 %
0.94 %
0.75 %
0.80 %
0.75 %
(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million as of December 31, 2022.
(2) Upon adoption of ASU 2022-02 as of January 1, 2023, the TDR model was eliminated. Prospectively, disclosures will include modifications of loans to borrowers experiencing financial difficulty (FDM). FDMs are excluded from nonperforming, underperforming and classified assets.
FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Twelve months ended,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Dec. 31,
Dec. 31,
2023
2023
2023
2023
2022
2023
2022
PER COMMON SHARE
Market Price
High
$ 24.28
$ 24.02
$ 22.27
$ 26.24
$ 26.68
$ 26.24
$ 26.73
Low
$ 17.37
$ 19.19
$ 18.20
$ 21.30
$ 21.56
$ 17.37
$ 19.02
Close
$ 23.75
$ 19.60
$ 20.44
$ 21.77
$ 24.23
$ 23.75
$ 24.23
Average shares outstanding – basic
94,063,570
94,030,275
93,924,068
93,732,532
93,590,674
93,938,772
93,528,712
Average shares outstanding – diluted
95,126,316
95,126,269
95,169,348
94,960,158
94,831,788
95,096,067
94,586,851
Ending shares outstanding
95,141,244
95,117,180
95,185,483
95,190,406
94,891,099
95,141,244
94,891,099
Total shareholders’ equity
$ 2,267,974
$ 2,129,509
$ 2,143,419
$ 2,121,496
$ 2,041,373
$ 2,267,974
$ 2,041,373
REGULATORY CAPITAL
Preliminary
Preliminary
Common equity tier 1 capital
$ 1,568,815
$ 1,527,793
$ 1,481,913
$ 1,432,332
$ 1,399,420
$ 1,568,815
$ 1,399,420
Common equity tier 1 capital ratio
11.85 %
11.60 %
11.34 %
11.00 %
10.83 %
11.85 %
10.83 %
Tier 1 capital
$ 1,613,480
$ 1,572,248
$ 1,526,362
$ 1,476,734
$ 1,443,698
$ 1,613,480
$ 1,443,698
Tier 1 ratio
12.19 %
11.94 %
11.68 %
11.34 %
11.17 %
12.19 %
11.17 %
Total capital
$ 1,820,285
$ 1,778,993
$ 1,756,968
$ 1,707,270
$ 1,691,255
$ 1,820,285
$ 1,691,255
Total capital ratio
13.75 %
13.51 %
13.44 %
13.11 %
13.09 %
13.75 %
13.09 %
Total capital in excess of minimum requirement
$ 430,482
$ 396,083
$ 384,735
$ 339,585
$ 334,316
$ 430,482
$ 334,316
Total risk-weighted assets
$ 13,236,221
$ 13,170,574
$ 13,068,888
$ 13,025,567
$ 12,923,233
$ 13,236,221
$ 12,923,233
Leverage ratio
9.70 %
9.59 %
9.33 %
9.03 %
8.89 %
9.70 %
8.89 %
OTHER CAPITAL RATIOS
Ending shareholders’ equity to ending assets
12.94 %
12.49 %
12.54 %
12.53 %
12.01 %
12.94 %
12.01 %
Ending tangible shareholders’ equity to ending tangible assets (1)
7.17 %
6.50 %
6.56 %
6.47 %
5.95 %
7.17 %
5.95 %
Average shareholders’ equity to average assets
12.52 %
12.70 %
12.60 %
12.29 %
11.98 %
12.53 %
12.85 %
Average tangible shareholders’ equity to average tangible assets (1)
6.57 %
6.69 %
6.57 %
6.21 %
5.84 %
6.51 %
6.59 %
REPURCHASE PROGRAM (2)
Shares repurchased
0
0
0
0
0
0
0
Average share repurchase price
N/A
N/A
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
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.
N/A = Not applicable
View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-fourth-quarter-and-full-year-2023-financial-results-and-quarterly-dividend-302045138.html
SOURCE First Financial Bancorp.
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