January 25, 2024

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,

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

$ 0.92

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 %

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,

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 %

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

$ 0.92

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

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

(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

$ 0.92

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

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2022

Fourth

Third

Second

First

Full

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)

(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

1,131

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

$ 0.92

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

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Dec. 31,

Sep. 30,

June 30,

Mar. 31,

Dec. 31,

% Change

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

1,005,828

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,

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 %

0.04 %

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

(4,437)

(4,338)

4,732

(5,546)

(814)

23,671

10,575

34,246

Long-term debt

221

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

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

4,423

152

Construction real estate

Commercial real estate

6,008

2,648

245

8,723

3,667

Residential real estate

224

Home equity

174

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

Construction real estate

Commercial real estate

153

2,238

1,327

2,523

4,304

Residential real estate

113

247

174

Home equity

178

125

232

615

898

Installment

210

441

165

Credit card

123

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

(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 %

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

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

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

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 %

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,

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

$ 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

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

Average share repurchase price

N/A

Total cost of shares repurchased

N/A

(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.

First Financial Bancorp Announces Fourth Quarter and Full Year 2023 Financial Results and Quarterly Dividend

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First Financial Bancorp Announces Fourth Quarter and Full Year 2023 Financial Results and Quarterly Dividend

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