First Financial Bancorp Announces Second Quarter 2024 Financial Results and Quarterly Dividend Increase
Earnings per diluted share of $0.64; $0.65 on an adjusted(1) basisReturn on average assets of 1.38%; 1.40% on an adjusted(1) basisNet interest margin on FTE basis(1) of 4.10%Record fee income of $61.5 millionLoan growth of $316.1 million; 11.3% on an annualized basisAverage deposit growth of $351.1 million; 10.6% on an annualized basisNet charge-offs 0.15% of total loans; 23 bp decline from linked quarterBoard of Directors approved quarterly dividend increase to $0.24
CINCINNATI , July 25, 2024 /PRNewswire/ — First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and six months ended June 30, 2024.
For the three months ended June 30, 2024, the Company reported net income of $60.8 million, or $0.64 per diluted common share. These results compare to net income of $50.7 million, or $0.53 per diluted common share, for the first quarter of 2024. For the six months ended June 30, 2024, First Financial had earnings per diluted share of $1.17 compared to $1.43 for the same period in 2023.
Return on average assets for the second quarter of 2024 was 1.38% while return on average tangible common equity was 20.57%(1). These compare to return on average assets of 1.18% and return on average tangible common equity of 17.35%(1) in the first quarter of 2024.
Second quarter 2024 highlights include:
Net interest margin of 4.06%, or 4.10% on a fully tax-equivalent basis(1)Unchanged from first quarter, exceeding expectations14 bp increase in earning asset yields driven by 10 bp increase in loan yields and 22 bp increase in yield on the investment securities portfolioCost of deposits increased 14 bp during second quarter; pace of increase moderated compared to 22 bp increase in first quarterRecord noninterest income of $61.5 million, or $61.6 million as adjusted(1)Foreign exchange income increased $6.4 million, or 60.9% from first quarterStrong leasing business income of $16.8 million; 15.3% increase from first quarterRecord wealth management income; 7.4% increase from linked quarterDouble digit percentage growth from linked quarter in mortgage banking and bankcard incomeNoninterest expenses of $123.6 million, or $122.5 million as adjusted(1); 1.2% increase from linked quarterIncrease driven by variable compensation tied to fee incomeSecond quarter adjustments(1) include $0.4 million of efficiency related costs and $0.8 million of other costs such as acquisition, severance and branch consolidation costsEfficiency ratio of 57.5%; 57.0% as adjusted(1)Solid loan growth during the quarterLoan balances increased $316.1 million compared to the linked quarter; 11.3% annualized growthBroad-based growth driven by C&I, Agile and Summit
_________________________________________________________________________________________
(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.
Strong average deposit growth during the quarterAverage deposits increased $351.1 million, or 10.6% on an annualized basisSecond quarter included approximately $100 million of seasonal public fund increasesGrowth in money market accounts, retail CDs and brokered CDs offset modest declines in noninterest bearing checking and savings balancesTotal Allowance for Credit Losses of $172.6 million; Total quarterly provision expense of $16.4 millionLoans and leases – ACL of $156.2 million; ratio to total loans of 1.36% increased 7 bps from first quarterUnfunded Commitments – ACL of $16.4 millionProvision expense driven by loan growth and downward credit migration; Classified assets 1.07% of total assetsAnnualized net charge-offs were 15 bps of total loans; 23 bps decline from linked quarterCapital ratios stable and strong Total capital ratio increased 16 bps to 14.47%Tier 1 common equity increased 11 bps to 11.78%Tangible common equity of 7.23%(1); 9.13%(1) excluding impact from AOCITangible book value per share of $12.94(1); 3.5% increase from linked quarter
Additionally, the board of directors approved a quarterly dividend of $0.24 per common share for the next regularly scheduled dividend, payable on September 16, 2024 to shareholders of record as of September 2, 2024.
Archie Brown, President and CEO, commented on the quarter, “We had an outstanding quarter. Adjusted(1) earnings per share were $0.65 per share, which resulted in an adjusted(1) return on assets of 1.40% and an adjusted(1) return on tangible common equity of 20.88%. Loan growth was exceptionally strong again this quarter with balances increasing by 11% on an annualized basis, and was a significant driver to the increase to net interest income. Growth was broad-based and was led by Commercial Banking. Similarly, average deposits grew approximately 11% for the period, with interest bearing deposits and a seasonal increase in public fund balances driving the increase. Our 4.10% tax equivalent net interest margin was unchanged from the first quarter and remains at or near the top of our peer group.”
Mr. Brown continued, “Total adjusted(1) revenue increased $14.4 million, or 7% compared to the linked quarter. Additionally, we posted record adjusted(1) noninterest income of $61.6 million. Growth in fee income was broad-based for the period with foreign exchange revenue growing more than 60% from the linked quarter. Leasing business income, mortgage banking and bankcard income all increased by double digit percentages and wealth management income posted another record quarter. Adjusted(1) expenses increased by 1.2% compared to the first quarter. The increase included a full quarter of Agile expenses, the impact of annual salary adjustments that occurred late in the first quarter and variable compensation tied to our record fee income. Through our workforce efficiency initiative, we have eliminated 90 full-time positions to date, and this work will continue through the remainder of the year.”
Mr. Brown commented on asset quality and the ACL, “I am pleased with the 23 basis point decline in net charge-offs to 15 basis points, which marks the third consecutive quarter that charge-offs have declined. We did experience some downward credit migration during the period, however this was not concentrated in any particular loan type, and nonperforming loans as a percentage of total assets was relatively flat compared to the prior quarter. Our ACL increased to 1.36% of total loans, and based on our outlook for loan growth and credit quality, we would expect provision to decline to levels approximating the first quarter in the coming periods.”
Mr. Brown concluded, “We are pleased to announce that our Board of Directors approved a $0.01 increase in the common dividend to $0.24. The 4.3% dividend increase results in a dividend payout ratio within our target range of 35% – 40% of net income and increases our already attractive yield. I am encouraged with our operating performance through the first half of 2024 and look forward to continued success for the full year.”
Full detail of the Company’s second quarter 2024 performance is provided in the accompanying financial statements and slide presentation.
Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, July 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), (609) 800-9099 (U.S. toll), access code 5048068. The recording will be available until August 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, 2023, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of June 30, 2024, the Company had $18.2 billion in assets, $11.5 billion in loans, $13.7 billion in deposits and $2.3 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.6 billion in assets under management as of June 30, 2024. The Company operated 131 full service banking centers as of June 30, 2024, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Six months ended,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
2024
2024
2023
2023
2023
2024
2023
RESULTS OF OPERATIONS
Net income
$ 60,805
$ 50,689
$ 56,732
$ 63,061
$ 65,667
$ 111,494
$ 136,070
Net earnings per share – basic
$ 0.64
$ 0.54
$ 0.60
$ 0.67
$ 0.70
$ 1.18
$ 1.45
Net earnings per share – diluted
$ 0.64
$ 0.53
$ 0.60
$ 0.66
$ 0.69
$ 1.17
$ 1.43
Dividends declared per share
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.46
$ 0.46
KEY FINANCIAL RATIOS
Return on average assets
1.38 %
1.18 %
1.31 %
1.48 %
1.55 %
1.28 %
1.62 %
Return on average shareholders’ equity
10.72 %
9.00 %
10.50 %
11.62 %
12.32 %
9.86 %
13.00 %
Return on average tangible shareholders’ equity (1)
20.57 %
17.35 %
21.36 %
23.60 %
25.27 %
18.97 %
27.08 %
Net interest margin
4.06 %
4.05 %
4.21 %
4.28 %
4.43 %
4.06 %
4.47 %
Net interest margin (fully tax equivalent) (1)(2)
4.10 %
4.10 %
4.26 %
4.33 %
4.48 %
4.10 %
4.51 %
Ending shareholders’ equity as a percent of ending assets
12.81 %
12.99 %
12.94 %
12.49 %
12.54 %
12.81 %
12.54 %
Ending tangible shareholders’ equity as a percent of:
Ending tangible assets (1)
7.23 %
7.23 %
7.17 %
6.50 %
6.56 %
7.23 %
6.56 %
Risk-weighted assets (1)
8.95 %
8.80 %
8.81 %
7.88 %
8.03 %
8.95 %
8.03 %
Average shareholders’ equity as a percent of average assets
12.87 %
13.09 %
12.52 %
12.70 %
12.60 %
12.98 %
12.45 %
Average tangible shareholders’ equity as a percent of average tangible assets (1)
7.15 %
7.25 %
6.57 %
6.69 %
6.57 %
7.20 %
6.39 %
Book value per share
$ 24.36
$ 23.95
$ 23.84
$ 22.39
$ 22.52
$ 24.36
$ 22.52
Tangible book value per share (1)
$ 12.94
$ 12.50
$ 12.38
$ 10.91
$ 11.02
$ 12.94
$ 11.02
Common equity tier 1 ratio (3)
11.78 %
11.67 %
11.73 %
11.60 %
11.34 %
11.78 %
11.34 %
Tier 1 ratio (3)
12.11 %
12.00 %
12.06 %
11.94 %
11.68 %
12.11 %
11.68 %
Total capital ratio (3)
14.47 %
14.31 %
14.26 %
14.19 %
14.16 %
14.47 %
14.16 %
Leverage ratio (3)
9.73 %
9.75 %
9.70 %
9.59 %
9.33 %
9.73 %
9.33 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$ 11,440,930
$ 11,066,184
$ 10,751,028
$ 10,623,734
$ 10,513,505
$ 11,253,557
$ 10,443,791
Investment securities
3,131,541
3,137,665
3,184,408
3,394,237
3,560,453
3,134,603
3,597,678
Interest-bearing deposits with other banks
599,348
553,654
548,153
386,173
329,584
576,501
323,837
Total earning assets
$ 15,171,819
$ 14,757,503
$ 14,483,589
$ 14,404,144
$ 14,403,542
$ 14,964,661
$ 14,365,306
Total assets
$ 17,728,251
$ 17,306,221
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 17,517,236
$ 16,955,596
Noninterest-bearing deposits
$ 3,144,198
$ 3,169,750
$ 3,368,024
$ 3,493,305
$ 3,663,419
$ 3,156,974
$ 3,808,362
Interest-bearing deposits
10,486,068
10,109,416
9,834,819
9,293,860
9,050,464
10,297,742
8,954,379
Total deposits
$ 13,630,266
$ 13,279,166
$ 13,202,843
$ 12,787,165
$ 12,713,883
$ 13,454,716
$ 12,762,741
Borrowings
$ 1,171,246
$ 1,139,014
$ 1,083,954
$ 1,403,071
$ 1,523,699
$ 1,155,130
$ 1,479,265
Shareholders’ equity
$ 2,281,040
$ 2,265,562
$ 2,144,482
$ 2,153,601
$ 2,137,765
$ 2,273,301
$ 2,110,141
CREDIT QUALITY RATIOS
Allowance to ending loans
1.36 %
1.29 %
1.29 %
1.36 %
1.41 %
1.36 %
1.41 %
Allowance to nonaccrual loans
249.21 %
243.55 %
215.10 %
193.75 %
276.70 %
249.21 %
276.70 %
Nonaccrual loans to total loans
0.54 %
0.53 %
0.60 %
0.70 %
0.51 %
0.54 %
0.51 %
Nonperforming assets to ending loans, plus OREO
0.54 %
0.53 %
0.60 %
0.71 %
0.51 %
0.54 %
0.51 %
Nonperforming assets to total assets
0.35 %
0.34 %
0.38 %
0.44 %
0.32 %
0.35 %
0.32 %
Classified assets to total assets
1.07 %
0.92 %
0.80 %
0.82 %
0.81 %
1.07 %
0.81 %
Net charge-offs to average loans (annualized)
0.15 %
0.38 %
0.46 %
0.61 %
0.22 %
0.27 %
0.11 %
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(3) June 30, 2024 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended,
Six months ended,
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
Interest income
Loans and leases, including fees
$ 211,760
$ 184,387
14.8 %
$ 413,600
$ 354,093
16.8 %
Investment securities
Taxable
30,295
32,062
(5.5) %
58,591
63,929
(8.3) %
Tax-exempt
2,704
3,513
(23.0) %
5,796
6,977
(16.9) %
Total investment securities interest
32,999
35,575
(7.2) %
64,387
70,906
(9.2) %
Other earning assets
7,960
3,933
102.4 %
15,418
7,477
106.2 %
Total interest income
252,719
223,895
12.9 %
493,405
432,476
14.1 %
Interest expense
Deposits
83,022
44,292
87.4 %
159,097
75,748
110.0 %
Short-term borrowings
11,395
15,536
(26.7) %
22,338
28,486
(21.6) %
Long-term borrowings
4,991
4,835
3.2 %
9,919
9,692
2.3 %
Total interest expense
99,408
64,663
53.7 %
191,354
113,926
68.0 %
Net interest income
153,311
159,232
(3.7) %
302,051
318,550
(5.2) %
Provision for credit losses-loans and leases
16,157
12,719
27.0 %
29,576
21,363
38.4 %
Provision for credit losses-unfunded commitments
286
(1,994)
(114.3) %
(1,973)
(159)
1,140.9 %
Net interest income after provision for credit losses
136,868
148,507
(7.8) %
274,448
297,346
(7.7) %
Noninterest income
Service charges on deposit accounts
7,188
6,972
3.1 %
14,100
13,486
4.6 %
Wealth management fees
7,172
6,713
6.8 %
13,848
13,047
6.1 %
Bankcard income
3,900
3,692
5.6 %
7,042
7,284
(3.3) %
Client derivative fees
763
1,827
(58.2) %
2,013
2,832
(28.9) %
Foreign exchange income
16,787
15,039
11.6 %
27,222
31,937
(14.8) %
Leasing business income
16,828
10,265
63.9 %
31,417
23,929
31.3 %
Net gains from sales of loans
4,479
3,839
16.7 %
8,263
6,174
33.8 %
Net gain (loss) on sale of investment securities
0
(384)
(100.0) %
(5,277)
(403)
1,209.4 %
Net gain (loss) on equity securities
(64)
(82)
(22.0) %
26
58
(55.2) %
Other
4,448
5,377
(17.3) %
9,359
10,457
(10.5) %
Total noninterest income
61,501
53,258
15.5 %
108,013
108,801
(0.7) %
Noninterest expenses
Salaries and employee benefits
75,225
74,199
1.4 %
149,262
146,453
1.9 %
Net occupancy
5,793
5,606
3.3 %
11,716
11,291
3.8 %
Furniture and equipment
3,646
3,362
8.4 %
7,334
6,679
9.8 %
Data processing
8,877
9,871
(10.1) %
17,182
18,891
(9.0) %
Marketing
2,605
2,802
(7.0) %
4,567
4,962
(8.0) %
Communication
816
644
26.7 %
1,611
1,278
26.1 %
Professional services
2,885
2,308
25.0 %
5,153
4,254
21.1 %
State intangible tax
875
964
(9.2) %
1,752
1,949
(10.1) %
FDIC assessments
2,657
2,806
(5.3) %
5,437
5,632
(3.5) %
Intangible amortization
2,396
2,601
(7.9) %
4,697
5,201
(9.7) %
Leasing business expense
10,128
6,730
50.5 %
19,882
14,668
35.5 %
Other
7,671
8,722
(12.0) %
17,336
16,050
8.0 %
Total noninterest expenses
123,574
120,615
2.5 %
245,929
237,308
3.6 %
Income before income taxes
74,795
81,150
(7.8) %
136,532
168,839
(19.1) %
Income tax expense (benefit)
13,990
15,483
(9.6) %
25,038
32,769
(23.6) %
Net income
$ 60,805
$ 65,667
(7.4) %
$ 111,494
$ 136,070
(18.1) %
ADDITIONAL DATA
Net earnings per share – basic
$ 0.64
$ 0.70
$ 1.18
$ 1.45
Net earnings per share – diluted
$ 0.64
$ 0.69
$ 1.17
$ 1.43
Dividends declared per share
$ 0.23
$ 0.23
$ 0.46
$ 0.46
Return on average assets
1.38 %
1.55 %
1.28 %
1.62 %
Return on average shareholders’ equity
10.72 %
12.32 %
9.86 %
13.00 %
Interest income
$ 252,719
$ 223,895
12.9 %
$ 493,405
$ 432,476
14.1 %
Tax equivalent adjustment
1,418
1,601
(11.4) %
2,953
3,025
(2.4) %
Interest income – tax equivalent
254,137
225,496
12.7 %
496,358
435,501
14.0 %
Interest expense
99,408
64,663
53.7 %
191,354
113,926
68.0 %
Net interest income – tax equivalent
$ 154,729
$ 160,833
(3.8) %
$ 305,004
$ 321,575
(5.2) %
Net interest margin
4.06 %
4.43 %
4.06 %
4.47 %
Net interest margin (fully tax equivalent) (1)
4.10 %
4.48 %
4.10 %
4.51 %
Full-time equivalent employees
2,144
2,193
(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)
2024
Second
First
Year to
% Change
Quarter
Quarter
Date
Linked Qtr.
Interest income
Loans and leases, including fees
$ 211,760
$ 201,840
$ 413,600
4.9 %
Investment securities
Taxable
30,295
28,296
58,591
7.1 %
Tax-exempt
2,704
3,092
5,796
(12.5) %
Total investment securities interest
32,999
31,388
64,387
5.1 %
Other earning assets
7,960
7,458
15,418
6.7 %
Total interest income
252,719
240,686
493,405
5.0 %
Interest expense
Deposits
83,022
76,075
159,097
9.1 %
Short-term borrowings
11,395
10,943
22,338
4.1 %
Long-term borrowings
4,991
4,928
9,919
1.3 %
Total interest expense
99,408
91,946
191,354
8.1 %
Net interest income
153,311
148,740
302,051
3.1 %
Provision for credit losses-loans and leases
16,157
13,419
29,576
20.4 %
Provision for credit losses-unfunded commitments
286
(2,259)
(1,973)
(112.7) %
Net interest income after provision for credit losses
136,868
137,580
274,448
(0.5) %
Noninterest income
Service charges on deposit accounts
7,188
6,912
14,100
4.0 %
Wealth management fees
7,172
6,676
13,848
7.4 %
Bankcard income
3,900
3,142
7,042
24.1 %
Client derivative fees
763
1,250
2,013
(39.0) %
Foreign exchange income
16,787
10,435
27,222
60.9 %
Leasing business income
16,828
14,589
31,417
15.3 %
Net gains from sales of loans
4,479
3,784
8,263
18.4 %
Net gain (loss) on sale of investment securities
0
(5,277)
(5,277)
(100.0) %
Net gain (loss) on equity securities
(64)
90
26
171.1 %
Other
4,448
4,911
9,359
(9.4) %
Total noninterest income
61,501
46,512
108,013
32.2 %
Noninterest expenses
Salaries and employee benefits
75,225
74,037
149,262
1.6 %
Net occupancy
5,793
5,923
11,716
(2.2) %
Furniture and equipment
3,646
3,688
7,334
(1.1) %
Data processing
8,877
8,305
17,182
6.9 %
Marketing
2,605
1,962
4,567
32.8 %
Communication
816
795
1,611
2.6 %
Professional services
2,885
2,268
5,153
27.2 %
State intangible tax
875
877
1,752
(0.2) %
FDIC assessments
2,657
2,780
5,437
(4.4) %
Intangible amortization
2,396
2,301
4,697
4.1 %
Leasing business expense
10,128
9,754
19,882
3.8 %
Other
7,671
9,665
17,336
(20.6) %
Total noninterest expenses
123,574
122,355
245,929
1.0 %
Income before income taxes
74,795
61,737
136,532
21.2 %
Income tax expense (benefit)
13,990
11,048
25,038
26.6 %
Net income
$ 60,805
$ 50,689
$ 111,494
20.0 %
ADDITIONAL DATA
Net earnings per share – basic
$ 0.64
$ 0.54
$ 1.18
Net earnings per share – diluted
$ 0.64
$ 0.53
$ 1.17
Dividends declared per share
$ 0.23
$ 0.23
$ 0.46
Return on average assets
1.38 %
1.18 %
1.28 %
Return on average shareholders’ equity
10.72 %
9.00 %
9.86 %
Interest income
$ 252,719
$ 240,686
$ 493,405
5.0 %
Tax equivalent adjustment
1,418
1,535
2,953
(7.6) %
Interest income – tax equivalent
254,137
242,221
496,358
4.9 %
Interest expense
99,408
91,946
191,354
8.1 %
Net interest income – tax equivalent
$ 154,729
$ 150,275
$ 305,004
3.0 %
Net interest margin
4.06 %
4.05 %
4.06 %
Net interest margin (fully tax equivalent) (1)
4.10 %
4.10 %
4.10 %
Full-time equivalent employees
2,144
2,116
(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
Full
Quarter
Quarter
Quarter
Quarter
Year
Interest income
Loans and leases, including fees
$ 197,416
$ 192,261
$ 184,387
$ 169,706
$ 743,770
Investment securities
Taxable
30,294
31,297
32,062
31,867
125,520
Tax-exempt
3,402
3,522
3,513
3,464
13,901
Total investment securities interest
33,696
34,819
35,575
35,331
139,421
Other earning assets
7,325
5,011
3,933
3,544
19,813
Total interest income
238,437
232,091
223,895
208,581
903,004
Interest expense
Deposits
69,193
57,069
44,292
31,456
202,010
Short-term borrowings
10,277
14,615
15,536
12,950
53,378
Long-term borrowings
5,202
4,952
4,835
4,857
19,846
Total interest expense
84,672
76,636
64,663
49,263
275,234
Net interest income
153,765
155,455
159,232
159,318
627,770
Provision for credit losses-loans and leases
8,804
12,907
12,719
8,644
43,074
Provision for credit losses-unfunded commitments
1,426
(1,234)
(1,994)
1,835
33
Net interest income after provision for credit losses
143,535
143,782
148,507
148,839
584,663
Noninterest income
Service charges on deposit accounts
6,846
6,957
6,972
6,514
27,289
Wealth management fees
6,091
6,943
6,713
6,334
26,081
Bankcard income
3,349
3,406
3,692
3,592
14,039
Client derivative fees
711
1,612
1,827
1,005
5,155
Foreign exchange income
8,730
13,384
15,039
16,898
54,051
Leasing business income
12,856
14,537
10,265
13,664
51,322
Net gains from sales of loans
2,957
4,086
3,839
2,335
13,217
Net gain (loss) on sale of investment securities
(851)
(4)
(384)
(19)
(1,258)
Net gain (loss) on equity securities
202
(54)
(82)
140
206
Other
6,102
5,761
5,377
5,080
22,320
Total noninterest income
46,993
56,628
53,258
55,543
212,422
Noninterest expenses
Salaries and employee benefits
70,637
75,641
74,199
72,254
292,731
Net occupancy
5,890
5,809
5,606
5,685
22,990
Furniture and equipment
3,523
3,341
3,362
3,317
13,543
Data processing
8,488
8,473
9,871
9,020
35,852
Marketing
2,087
2,598
2,802
2,160
9,647
Communication
707
744
644
634
2,729
Professional services
3,148
2,524
2,308
1,946
9,926
State intangible tax
984
981
964
985
3,914
FDIC assessments
3,651
2,665
2,806
2,826
11,948
Intangible amortization
2,601
2,600
2,601
2,600
10,402
Leasing business expense
8,955
8,877
6,730
7,938
32,500
Other
8,466
7,791
8,722
7,328
32,307
Total noninterest expenses
119,137
122,044
120,615
116,693
478,489
Income before income taxes
71,391
78,366
81,150
87,689
318,596
Income tax expense (benefit)
14,659
15,305
15,483
17,286
62,733
Net income
$ 56,732
$ 63,061
$ 65,667
$ 70,403
$ 255,863
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
Tax equivalent adjustment
1,672
1,659
1,601
1,424
6,356
Interest income – tax equivalent
240,109
233,750
225,496
210,005
909,360
Interest expense
84,672
76,636
64,663
49,263
275,234
Net interest income – tax equivalent
$ 155,437
$ 157,114
$ 160,833
$ 160,742
$ 634,126
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 STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
% Change
% Change
2024
2024
2023
2023
2023
Linked Qtr.
Comp Qtr.
ASSETS
Cash and due from banks
$ 193,794
$ 199,407
$ 213,059
$ 220,335
$ 217,385
(2.8) %
(10.9) %
Interest-bearing deposits with other banks
738,555
751,290
792,960
452,867
485,241
(1.7) %
52.2 %
Investment securities available-for-sale
3,036,758
2,850,667
3,021,126
3,044,361
3,249,404
6.5 %
(6.5) %
Investment securities held-to-maturity
78,921
79,542
80,321
81,236
82,372
(0.8) %
(4.2) %
Other investments
132,412
125,548
129,945
133,725
141,892
5.5 %
(6.7) %
Loans held for sale
16,911
11,534
9,213
12,391
15,267
46.6 %
10.8 %
Loans and leases
Commercial and industrial
3,782,487
3,591,428
3,501,221
3,420,873
3,433,162
5.3 %
10.2 %
Lease financing
534,557
492,862
474,817
399,973
360,801
8.5 %
48.2 %
Construction real estate
741,406
641,596
564,832
578,824
536,464
15.6 %
38.2 %
Commercial real estate
4,076,596
4,145,969
4,080,939
3,992,654
4,048,460
(1.7) %
0.7 %
Residential real estate
1,377,290
1,344,677
1,333,674
1,293,470
1,221,484
2.4 %
12.8 %
Home equity
800,860
773,811
758,676
743,991
728,711
3.5 %
9.9 %
Installment
148,530
153,838
159,078
160,648
165,216
(3.5) %
(10.1) %
Credit card
59,477
60,939
59,939
56,386
55,911
(2.4) %
6.4 %
Total loans
11,521,203
11,205,120
10,933,176
10,646,819
10,550,209
2.8 %
9.2 %
Less:
Allowance for credit losses
(156,185)
(144,274)
(141,433)
(145,201)
(148,646)
8.3 %
5.1 %
Net loans
11,365,018
11,060,846
10,791,743
10,501,618
10,401,563
2.7 %
9.3 %
Premises and equipment
197,873
198,428
194,740
192,572
192,077
(0.3) %
3.0 %
Operating leases
167,472
161,473
153,214
136,883
132,272
3.7 %
26.6 %
Goodwill
1,007,656
1,007,656
1,005,868
1,005,868
1,005,828
0.0 %
0.2 %
Other intangibles
83,528
85,603
83,949
86,378
88,662
(2.4) %
(5.8) %
Accrued interest and other assets
1,147,282
1,067,244
1,056,762
1,186,618
1,078,186
7.5 %
6.4 %
Total Assets
$ 18,166,180
$ 17,599,238
$ 17,532,900
$ 17,054,852
$ 17,090,149
3.2 %
6.3 %
LIABILITIES
Deposits
Interest-bearing demand
$ 2,922,540
$ 2,916,518
$ 2,993,219
$ 2,880,617
$ 2,919,472
0.2 %
0.1 %
Savings
4,628,320
4,467,894
4,331,228
4,023,455
3,785,445
3.6 %
22.3 %
Time
3,049,635
2,896,860
2,718,390
2,572,909
2,484,780
5.3 %
22.7 %
Total interest-bearing deposits
10,600,495
10,281,272
10,042,837
9,476,981
9,189,697
3.1 %
15.4 %
Noninterest-bearing
3,061,427
3,175,876
3,317,960
3,438,572
3,605,181
(3.6) %
(15.1) %
Total deposits
13,661,922
13,457,148
13,360,797
12,915,553
12,794,878
1.5 %
6.8 %
FHLB short-term borrowings
1,040,000
700,000
800,000
755,000
1,050,300
48.6 %
(1.0) %
Other
139,172
162,145
137,814
219,188
165,983
(14.2) %
(16.2) %
Total short-term borrowings
1,179,172
862,145
937,814
974,188
1,216,283
36.8 %
(3.1) %
Long-term debt
338,556
343,236
344,115
340,902
339,963
(1.4) %
(0.4) %
Total borrowed funds
1,517,728
1,205,381
1,281,929
1,315,090
1,556,246
25.9 %
(2.5) %
Accrued interest and other liabilities
660,091
649,706
622,200
694,700
595,606
1.6 %
10.8 %
Total Liabilities
15,839,741
15,312,235
15,264,926
14,925,343
14,946,730
3.4 %
6.0 %
SHAREHOLDERS’ EQUITY
Common stock
1,635,705
1,632,971
1,638,972
1,636,054
1,632,659
0.2 %
0.2 %
Retained earnings
1,204,844
1,166,065
1,136,718
1,101,905
1,060,715
3.3 %
13.6 %
Accumulated other comprehensive income (loss)
(323,409)
(321,109)
(309,819)
(410,005)
(353,010)
0.7 %
(8.4) %
Treasury stock, at cost
(190,701)
(190,924)
(197,897)
(198,445)
(196,945)
(0.1) %
(3.2) %
Total Shareholders’ Equity
2,326,439
2,287,003
2,267,974
2,129,509
2,143,419
1.7 %
8.5 %
Total Liabilities and Shareholders’ Equity
$ 18,166,180
$ 17,599,238
$ 17,532,900
$ 17,054,852
$ 17,090,149
3.2 %
6.3 %
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Year-to-Date Averages
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
2024
2024
2023
2023
2023
2024
2023
ASSETS
Cash and due from banks
$ 174,435
$ 204,119
$ 214,678
$ 211,670
$ 221,527
$ 189,277
$ 220,133
Interest-bearing deposits with other banks
599,348
553,654
548,153
386,173
329,584
576,501
323,837
Investment securities
3,131,541
3,137,665
3,184,408
3,394,237
3,560,453
3,134,603
3,597,678
Loans held for sale
14,075
12,069
12,547
15,420
11,856
13,072
8,711
Loans and leases
Commercial and industrial
3,716,083
3,543,475
3,422,381
3,443,615
3,469,683
3,629,779
3,463,218
Lease financing
509,758
480,540
419,179
371,598
323,819
495,149
288,217
Construction real estate
683,780
603,974
540,314
547,884
518,190
643,877
527,192
Commercial real estate
4,146,764
4,101,238
4,060,733
4,024,798
4,050,946
4,124,001
4,034,077
Residential real estate
1,361,133
1,336,749
1,320,670
1,260,249
1,181,053
1,348,941
1,148,651
Home equity
790,384
765,410
750,925
735,251
726,333
777,897
727,254
Installment
151,753
157,663
160,242
164,092
172,147
154,708
188,947
Credit card
67,200
65,066
64,037
60,827
59,478
66,133
57,524
Total loans
11,426,855
11,054,115
10,738,481
10,608,314
10,501,649
11,240,485
10,435,080
Less:
Allowance for credit losses
(147,666)
(143,950)
(149,398)
(150,297)
(145,578)
(145,808)
(141,024)
Net loans
11,279,189
10,910,165
10,589,083
10,458,017
10,356,071
11,094,677
10,294,056
Premises and equipment
199,096
198,482
194,435
194,228
190,583
198,789
190,465
Operating leases
156,457
154,655
139,331
132,984
138,725
155,556
122,996
Goodwill
1,007,657
1,006,477
1,005,870
1,005,844
1,005,791
1,007,067
1,005,752
Other intangibles
84,577
84,109
85,101
87,427
89,878
84,343
91,225
Accrued interest and other assets
1,081,876
1,044,826
1,151,349
1,065,389
1,063,587
1,063,351
1,100,743
Total Assets
$ 17,728,251
$ 17,306,221
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 17,517,236
$ 16,955,596
LIABILITIES
Deposits
Interest-bearing demand
$ 2,888,252
$ 2,895,768
$ 2,988,086
$ 2,927,416
$ 2,906,855
$ 2,892,010
$ 2,906,784
Savings
4,617,658
4,399,768
4,235,658
3,919,590
3,749,902
4,508,713
3,784,164
Time
2,980,158
2,813,880
2,611,075
2,446,854
2,393,707
2,897,019
2,263,431
Total interest-bearing deposits
10,486,068
10,109,416
9,834,819
9,293,860
9,050,464
10,297,742
8,954,379
Noninterest-bearing
3,144,198
3,169,750
3,368,024
3,493,305
3,663,419
3,156,974
3,808,362
Total deposits
13,630,266
13,279,166
13,202,843
12,787,165
12,713,883
13,454,716
12,762,741
Federal funds purchased and securities sold
under agreements to repurchase
750
4,204
3,586
10,788
21,881
2,477
24,118
FHLB short-term borrowings
669,111
646,187
554,826
878,199
1,028,207
657,649
976,960
Other
161,913
146,127
185,221
175,682
132,088
154,020
135,622
Total short-term borrowings
831,774
796,518
743,633
1,064,669
1,182,176
814,146
1,136,700
Long-term debt
339,472
342,496
340,321
338,402
341,523
340,984
342,565
Total borrowed funds
1,171,246
1,139,014
1,083,954
1,403,071
1,523,699
1,155,130
1,479,265
Accrued interest and other liabilities
645,699
622,479
693,676
607,552
592,708
634,089
603,449
Total Liabilities
15,447,211
15,040,659
14,980,473
14,797,788
14,830,290
15,243,935
14,845,455
SHAREHOLDERS’ EQUITY
Common stock
1,634,183
1,637,835
1,637,197
1,634,102
1,631,230
1,636,009
1,632,307
Retained earnings
1,179,827
1,144,447
1,111,786
1,076,515
1,034,092
1,162,137
1,012,057
Accumulated other comprehensive loss
(341,941)
(319,601)
(406,265)
(358,769)
(330,263)
(330,771)
(334,831)
Treasury stock, at cost
(191,029)
(197,119)
(198,236)
(198,247)
(197,294)
(194,074)
(199,392)
Total Shareholders’ Equity
2,281,040
2,265,562
2,144,482
2,153,601
2,137,765
2,273,301
2,110,141
Total Liabilities and Shareholders’ Equity
$ 17,728,251
$ 17,306,221
$ 17,124,955
$ 16,951,389
$ 16,968,055
$ 17,517,236
$ 16,955,596
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Year-to-Date Averages
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Balance
Interest
Yield
Balance
Interest
Yield
Balance
Interest
Yield
Balance
Yield
Balance
Yield
Earning assets
Investments:
Investment securities
$ 3,131,541
$ 32,999
4.23 %
$ 3,137,665
$ 31,388
4.01 %
$ 3,560,453
$ 35,575
4.01 %
$ 3,134,603
4.14 %
$ 3,597,678
3.97 %
Interest-bearing deposits with other banks
599,348
7,960
5.33 %
553,654
7,458
5.40 %
329,584
3,933
4.79 %
576,501
5.39 %
323,837
4.66 %
Gross loans (1)
11,440,930
211,760
7.42 %
11,066,184
201,840
7.32 %
10,513,505
184,387
7.03 %
11,253,557
7.41 %
10,443,791
6.84 %
Total earning assets
15,171,819
252,719
6.68 %
14,757,503
240,686
6.54 %
14,403,542
223,895
6.23 %
14,964,661
6.65 %
14,365,306
6.07 %
Nonearning assets
Allowance for credit losses
(147,666)
(143,950)
(145,578)
(145,808)
(141,024)
Cash and due from banks
174,435
204,119
221,527
189,277
220,133
Accrued interest and other assets
2,529,663
2,488,549
2,488,564
2,509,106
2,511,181
Total assets
$ 17,728,251
$ 17,306,221
$ 16,968,055
$ 17,517,236
$ 16,955,596
Interest-bearing liabilities
Deposits:
Interest-bearing demand
$ 2,888,252
$ 14,923
2.07 %
$ 2,895,768
$ 14,892
2.06 %
$ 2,906,855
$ 8,351
1.15 %
$ 2,892,010
2.08 %
$ 2,906,784
1.04 %
Savings
4,617,658
33,142
2.88 %
4,399,768
29,486
2.69 %
3,749,902
14,055
1.50 %
4,508,713
2.80 %
3,784,164
1.16 %
Time
2,980,158
34,957
4.70 %
2,813,880
31,697
4.52 %
2,393,707
21,886
3.67 %
2,897,019
4.64 %
2,263,431
3.48 %
Total interest-bearing deposits
10,486,068
83,022
3.18 %
10,109,416
76,075
3.02 %
9,050,464
44,292
1.96 %
10,297,742
3.12 %
8,954,379
1.71 %
Borrowed funds
Short-term borrowings
831,774
11,395
5.49 %
796,518
10,943
5.51 %
1,182,176
15,536
5.27 %
814,146
5.53 %
1,136,700
5.05 %
Long-term debt
339,472
4,991
5.90 %
342,496
4,928
5.77 %
341,523
4,835
5.68 %
340,984
5.87 %
342,565
5.71 %
Total borrowed funds
1,171,246
16,386
5.61 %
1,139,014
15,871
5.59 %
1,523,699
20,371
5.36 %
1,155,130
5.63 %
1,479,265
5.20 %
Total interest-bearing liabilities
11,657,314
99,408
3.42 %
11,248,430
91,946
3.28 %
10,574,163
64,663
2.45 %
11,452,872
3.37 %
10,433,644
2.20 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits
3,144,198
3,169,750
3,663,419
3,156,974
3,808,362
Other liabilities
645,699
622,479
592,708
634,089
603,449
Shareholders’ equity
2,281,040
2,265,562
2,137,765
2,273,301
2,110,141
Total liabilities & shareholders’ equity
$ 17,728,251
$ 17,306,221
$ 16,968,055
$ 17,517,236
$ 16,955,596
Net interest income
$ 153,311
$ 148,740
$ 159,232
$ 302,051
$ 318,550
Net interest spread
3.26 %
3.26 %
3.78 %
3.28 %
3.87 %
Net interest margin
4.06 %
4.05 %
4.43 %
4.06 %
4.47 %
Tax equivalent adjustment
0.04 %
0.05 %
0.05 %
0.04 %
0.04 %
Net interest margin (fully tax equivalent)
4.10 %
4.10 %
4.48 %
4.10 %
4.51 %
(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
$ 1,676
$ (65)
$ 1,611
$ 1,944
$ (4,520)
$ (2,576)
$ 2,993
$ (9,512)
$ (6,519)
Interest-bearing deposits with other banks
(105)
607
502
444
3,583
4,027
1,184
6,757
7,941
Gross loans (2)
2,984
6,936
9,920
10,207
17,166
27,373
29,746
29,761
59,507
Total earning assets
4,555
7,478
12,033
12,595
16,229
28,824
33,923
27,006
60,929
Interest-bearing liabilities
Total interest-bearing deposits
$ 3,965
$ 2,982
$ 6,947
$ 27,364
$ 11,366
$ 38,730
$ 62,594
$ 20,755
$ 83,349
Borrowed funds
Short-term borrowings
(31)
483
452
659
(4,800)
(4,141)
2,702
(8,850)
(6,148)
Long-term debt
107
(44)
63
186
(30)
156
273
(46)
227
Total borrowed funds
76
439
515
845
(4,830)
(3,985)
2,975
(8,896)
(5,921)
Total interest-bearing liabilities
4,041
3,421
7,462
28,209
6,536
34,745
65,569
11,859
77,428
Net interest income (1)
$ 514
$ 4,057
$ 4,571
$ (15,614)
$ 9,693
$ (5,921)
$ (31,646)
$ 15,147
$ (16,499)
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.
FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
Six months ended,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
June 30,
2024
2024
2023
2023
2023
2024
2023
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period
$ 144,274
$ 141,433
$ 145,201
$ 148,646
$ 141,591
$ 141,433
$ 132,977
Provision for credit losses
16,157
13,419
8,804
12,907
12,719
29,576
21,363
Gross charge-offs
Commercial and industrial
2,149
2,695
6,866
9,207
2,372
4,844
3,102
Lease financing
190
3
4,244
76
90
193
103
Construction real estate
0
0
0
0
0
0
0
Commercial real estate
2
5,319
1
6,008
2,648
5,321
2,714
Residential real estate
6
65
9
10
20
71
20
Home equity
122
25
174
54
21
147
112
Installment
2,034
2,236
2,054
1,349
1,515
4,270
3,039
Credit card
532
794
363
319
274
1,326
491
Total gross charge-offs
5,035
11,137
13,711
17,023
6,940
16,172
9,581
Recoveries
Commercial and industrial
236
162
459
335
631
398
740
Lease financing
1
59
52
1
1
60
2
Construction real estate
0
0
0
0
0
0
0
Commercial real estate
137
38
93
39
153
175
2,391
Residential real estate
37
24
24
44
113
61
179
Home equity
118
80
178
125
232
198
312
Installment
219
145
210
87
90
364
144
Credit card
41
51
123
40
56
92
119
Total recoveries
789
559
1,139
671
1,276
1,348
3,887
Total net charge-offs
4,246
10,578
12,572
16,352
5,664
14,824
5,694
Ending allowance for credit losses
$ 156,185
$ 144,274
$ 141,433
$ 145,201
$ 148,646
$ 156,185
$ 148,646
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial
0.21 %
0.29 %
0.74 %
1.02 %
0.20 %
0.25 %
0.14 %
Lease financing
0.15 %
(0.05) %
3.97 %
0.08 %
0.11 %
0.05 %
0.07 %
Construction real estate
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
Commercial real estate
(0.01) %
0.52 %
(0.01) %
0.59 %
0.25 %
0.25 %
0.02 %
Residential real estate
(0.01) %
0.01 %
0.00 %
(0.01) %
(0.03) %
0.00 %
(0.03) %
Home equity
0.00 %
(0.03) %
0.00 %
(0.04) %
(0.12) %
(0.01) %
(0.06) %
Installment
4.81 %
5.33 %
4.57 %
3.05 %
3.32 %
5.08 %
3.09 %
Credit card
2.94 %
4.59 %
1.49 %
1.82 %
1.47 %
3.75 %
1.30 %
Total net charge-offs
0.15 %
0.38 %
0.46 %
0.61 %
0.22 %
0.27 %
0.11 %
COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans
Commercial and industrial
$ 17,665
$ 14,532
$ 15,746
$ 17,152
$ 21,508
$ 17,665
$ 21,508
Lease financing
5,374
3,794
3,610
7,731
4,833
5,374
4,833
Construction real estate
0
0
0
0
0
0
0
Commercial real estate
22,942
23,055
27,984
33,019
11,876
22,942
11,876
Residential real estate
12,715
12,836
14,067
12,328
11,697
12,715
11,697
Home equity
3,295
4,036
3,476
3,937
3,239
3,295
3,239
Installment
682
984
870
774
568
682
568
Total nonaccrual loans
62,673
59,237
65,753
74,941
53,721
62,673
53,721
Other real estate owned (OREO)
30
161
106
142
281
30
281
Total nonperforming assets
62,703
59,398
65,859
75,083
54,002
62,703
54,002
Accruing loans past due 90 days or more
1,573
820
2,028
698
873
1,573
873
Total underperforming assets
$ 64,276
$ 60,218
$ 67,887
$ 75,781
$ 54,875
$ 64,276
$ 54,875
Total classified assets
$ 195,277
$ 162,348
$ 140,995
$ 140,552
$ 138,909
$ 195,277
$ 138,909
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans
249.21 %
243.55 %
215.10 %
193.75 %
276.70 %
249.21 %
276.70 %
Total ending loans
1.36 %
1.29 %
1.29 %
1.36 %
1.41 %
1.36 %
1.41 %
Nonaccrual loans to total loans
0.54 %
0.53 %
0.60 %
0.70 %
0.51 %
0.54 %
0.51 %
Nonperforming assets to
Ending loans, plus OREO
0.54 %
0.53 %
0.60 %
0.71 %
0.51 %
0.54 %
0.51 %
Total assets
0.35 %
0.34 %
0.38 %
0.44 %
0.32 %
0.35 %
0.32 %
Classified assets to total assets
1.07 %
0.92 %
0.80 %
0.82 %
0.81 %
1.07 %
0.81 %
FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Six months ended,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
June 30,
2024
2024
2023
2023
2023
2024
2023
PER COMMON SHARE
Market Price
High
$ 23.78
$ 23.68
$ 24.28
$ 24.02
$ 22.27
$ 23.78
$ 26.24
Low
$ 20.79
$ 21.04
$ 17.37
$ 19.19
$ 18.20
$ 20.79
$ 18.20
Close
$ 22.22
$ 22.42
$ 23.75
$ 19.60
$ 20.44
$ 22.22
$ 20.44
Average shares outstanding – basic
94,438,235
94,218,067
94,063,570
94,030,275
93,924,068
94,328,151
93,828,829
Average shares outstanding – diluted
95,470,093
95,183,998
95,126,316
95,126,269
95,169,348
95,327,045
95,065,334
Ending shares outstanding
95,486,010
95,473,595
95,141,244
95,117,180
95,185,483
95,486,010
95,185,483
Total shareholders’ equity
$ 2,326,439
$ 2,287,003
$ 2,267,974
$ 2,129,509
$ 2,143,419
$ 2,326,439
$ 2,143,419
REGULATORY CAPITAL
Preliminary
Preliminary
Common equity tier 1 capital
$ 1,626,345
$ 1,582,113
$ 1,568,815
$ 1,527,793
$ 1,481,913
$ 1,626,345
$ 1,481,913
Common equity tier 1 capital ratio
11.78 %
11.67 %
11.73 %
11.60 %
11.34 %
11.78 %
11.34 %
Tier 1 capital
$ 1,671,258
$ 1,626,899
$ 1,613,480
$ 1,572,248
$ 1,526,362
$ 1,671,258
$ 1,526,362
Tier 1 ratio
12.11 %
12.00 %
12.06 %
11.94 %
11.68 %
12.11 %
11.68 %
Total capital
$ 1,997,378
$ 1,940,762
$ 1,907,441
$ 1,868,490
$ 1,851,144
$ 1,997,378
$ 1,851,144
Total capital ratio
14.47 %
14.31 %
14.26 %
14.19 %
14.16 %
14.47 %
14.16 %
Total capital in excess of minimum requirement
$ 548,037
$ 516,704
$ 503,152
$ 485,580
$ 478,911
$ 548,037
$ 478,911
Total risk-weighted assets
$ 13,803,249
$ 13,562,455
$ 13,374,177
$ 13,170,574
$ 13,068,888
$ 13,803,249
$ 13,068,888
Leverage ratio
9.73 %
9.75 %
9.70 %
9.59 %
9.33 %
9.73 %
9.33 %
OTHER CAPITAL RATIOS
Ending shareholders’ equity to ending assets
12.81 %
12.99 %
12.94 %
12.49 %
12.54 %
12.81 %
12.54 %
Ending tangible shareholders’ equity to ending tangible assets (1)
7.23 %
7.23 %
7.17 %
6.50 %
6.56 %
7.23 %
6.56 %
Average shareholders’ equity to average assets
12.87 %
13.09 %
12.52 %
12.70 %
12.60 %
12.98 %
12.45 %
Average tangible shareholders’ equity to average tangible assets (1)
7.15 %
7.25 %
6.57 %
6.69 %
6.57 %
7.20 %
6.39 %
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-second-quarter-2024-financial-results-and-quarterly-dividend-increase-302207028.html
SOURCE First Financial Bancorp.
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