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First Financial Bancorp Announces Fourth Quarter and Full Year 2018 Results and 10% Dividend Increase

CINCINNATI, Jan. 23, 2019 /PRNewswire/ -- First Financial Bancorp. (FFBC) ("First Financial" or the "Company") announced financial results for the fourth quarter and full year 2018.

For the three months ended December 31, 2018, the Company reported net income of $55.0 million, or $0.56 per diluted common share.  These results compare to net income of $50.7 million, or $0.51 per diluted common share, for the third quarter of 2018 and $24.8 million, or $0.40 per diluted common share, for the fourth quarter of 2017.  Net income was negatively impacted by the recognition of $7.5 million of efficiency and merger related costs, which more than offset $1.6 million of gains from the redemption of off balance sheet securitizations, reducing earnings per diluted common share by $0.05 on a net basis.  For the twelve months ended December 31, 2018, First Financial had earnings per diluted common share of $1.93 compared to $1.56 for the same period in 2017.

Return on average assets for the fourth quarter of 2018 was 1.59% while return on average tangible common equity was 19.63%.  These compare to a return on average assets of 1.45% and return on average tangible common equity of 18.52% in the third quarter of 2018 and a return on average assets of 1.13% and a return on average tangible common equity of 13.85% in the fourth quarter of 2017.

Fourth quarter 2018 highlights include:

  • After adjustments(1) for merger related and nonrecurring items:
  • Net interest margin of 4.21% on a fully tax equivalent basis(1)
  • Noninterest expenses of $83.4 million, or $75.9 million as adjusted(1)
  • Stable loan balances
  • Annualized quarterly increase in average deposit balances of 16%
  • Classified assets declined 5%; annualized net charge-offs increased to 29 basis points as a percentage of average loans for the quarter and were 15 basis points for the full year 2018

(1) Financial information in this release that is described as "adjusted" or that is presented on a fully tax equivalent basis is non-GAAP.  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.

Archie Brown, President and Chief Executive Officer, commented, "Fourth quarter results were very strong, and we remain pleased with the operational performance of the Company.  Revenue growth and increased operating leverage led to adjusted(1) earnings per share of $0.61 and substantial returns on assets and average tangible common equity while net interest margin increased 9 basis points."

Mr. Brown continued, "Fourth quarter core banking trends were positive and loan originations were stronger than they have been all year, however elevated payoffs, particularly in ICRE (investment commercial real estate), led to a slight decline in overall loan balances.  In addition to positive loan origination trends, we were particularly pleased with our ability to grow deposits during the the quarter while maintaining a pricing discipline that benefits both our clients and our shareholders."

Mr. Brown concluded, "2018 was a year of significant change for First Financial. We are highly encouraged by the way in which the Company has come together culturally and performed financially.  Successfully completing a transformational merger while producing high level returns reflects the hard work of our associates and dedication to serving the needs of our clients and shareholders.  We remain confident in our ability to sustain these results and our outlook for the future continues to be very optimistic."

First Financial's Board of Directors also approved a 10% increase in the quarterly dividend to $0.22 per share, payable on March 15, 2019 to shareholders of record as of March 1, 2019.

Full detail of the Company's fourth quarter and full year 2018 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 Thursday, January 24, 2019 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required).  The number should be dialed five to ten minutes prior to the start of the conference call.  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.  A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10127430.  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 Statement

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: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; (ii) the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iii) management's ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the possibility that any of the anticipated benefits of the Company's recent merger with MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers' performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation.  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, 2017, 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, 2018, the Company had $14.0 billion in assets, $8.8 billion in loans, $10.1 billion in deposits and $2.1 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 $2.6 billion in assets under management as of December 31, 2018.  The Company's primary operating markets are located in Ohio, Indiana and Kentucky where it operated 159 banking centers as of December 31, 2018, 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,


Jun. 30,


Mar. 31,


Dec. 31,


Dec. 31,


2018


2018


2018


2018


2017


2018


2017

RESULTS OF OPERATIONS














Net income

$

55,014



$

50,657



$

36,418



$

30,506



$

24,811



$

172,595



$

96,787


Net earnings per share - basic

$

0.56



$

0.52



$

0.37



$

0.49



$

0.40



$

1.95



$

1.57


Net earnings per share - diluted

$

0.56



$

0.51



$

0.37



$

0.49



$

0.40



$

1.93



$

1.56


Dividends declared per share

$

0.20



$

0.20



$

0.19



$

0.19



$

0.17



$

0.78



$

0.68
















KEY FINANCIAL RATIOS














Return on average assets

1.59

%


1.45

%


1.05

%


1.40

%


1.13

%


1.37

%


1.12

%

Return on average shareholders' equity

10.68

%


9.94

%


7.36

%


13.31

%


10.70

%


9.85

%


10.78

%

Return on average tangible shareholders' equity

19.63

%


18.52

%


13.75

%


17.18

%


13.85

%


17.32

%


14.08

%















Net interest margin

4.16

%


4.06

%


4.10

%


3.80

%


3.75

%


4.05

%


3.59

%

Net interest margin (fully tax equivalent) (1)

4.21

%


4.12

%


4.15

%


3.84

%


3.82

%


4.10

%


3.66

%















Ending shareholders' equity as a percent of ending assets

14.86

%


14.70

%


14.46

%


10.56

%


10.46

%


14.86

%


10.46

%

Ending tangible shareholders' equity as a percent of:














Ending tangible assets

8.79

%


8.53

%


8.30

%


8.41

%


8.30

%


8.79

%


8.30

%

Risk-weighted assets

11.20

%


10.77

%


10.52

%


10.09

%


10.15

%


11.20

%


10.15

%















Average shareholders' equity as a percent of average assets

14.84

%


14.62

%


14.33

%


10.53

%


10.54

%


13.89

%


10.42

%

Average tangible shareholders' equity as a percent of














    average tangible assets

8.66

%


8.42

%


8.16

%


8.35

%


8.34

%


8.40

%


8.18

%















Book value per share

$

21.23



$

20.79



$

20.56



$

15.11



$

14.99



$

21.23



$

14.99


Tangible book value per share

$

11.72



$

11.25



$

11.01



$

11.75



$

11.62



$

11.72



$

11.62
















Common equity tier 1 ratio (2)

11.87

%


11.52

%


11.15

%


10.77

%


10.63

%


11.87

%


10.63

%

Tier 1 ratio (2)

12.28

%


11.93

%


11.55

%


10.77

%


10.63

%


12.28

%


10.63

%

Total capital ratio (2)

14.10

%


13.77

%


13.36

%


13.17

%


13.07

%


14.10

%


13.07

%

Leverage ratio (2)

9.71

%


9.41

%


9.06

%


9.00

%


8.84

%


9.71

%


8.84

%















AVERAGE BALANCE SHEET ITEMS














Loans (3)

$

8,766,302



$

8,848,710



$

8,933,400



$

6,016,492



$

5,952,290



$

8,150,698



$

5,845,863


FDIC indemnification asset







1,502



7,413



370



9,535


Investment securities

3,204,758



3,168,044



3,157,339



2,042,781



2,020,040



2,897,167



2,001,387


Interest-bearing deposits with other banks

32,013



39,873



29,261



27,073



25,357



32,090



30,933


  Total earning assets

$

12,003,073



$

12,056,627



$

12,120,000



$

8,087,848



$

8,005,100



$

11,080,325



$

7,887,718


Total assets

$

13,768,958



$

13,822,675



$

13,956,360



$

8,830,176



$

8,731,956



$

12,611,438



$

8,611,403


Noninterest-bearing deposits

$

2,476,773



$

2,388,976



$

2,421,230



$

1,570,572



$

1,637,228



$

2,217,349



$

1,540,384


Interest-bearing deposits

7,573,069



7,499,112



7,961,405



5,332,740



5,202,412



7,098,836



5,093,865


  Total deposits

$

10,049,842



$

9,888,088



$

10,382,635



$

6,903,312



$

6,839,640



$

9,316,185



$

6,634,249


Borrowings

$

1,509,642



$

1,748,415



$

1,408,024



$

866,848



$

842,211



$

1,385,994



$

951,159


Shareholders' equity

$

2,042,884



$

2,021,400



$

2,000,093



$

929,474



$

920,194



$

1,752,261



$

897,431
















CREDIT QUALITY RATIOS













Allowance to ending loans

0.64

%


0.65

%


0.61

%


0.89

%


0.90

%


0.64

%


0.90

%

Allowance to nonaccrual loans

79.97

%


136.22

%


133.65

%


179.57

%


224.32

%


79.97

%


224.32

%

Allowance to nonperforming loans

65.13

%


92.08

%


86.80

%


120.24

%


129.77

%


65.13

%


129.77

%

Nonperforming loans to total loans

0.98

%


0.71

%


0.70

%


0.74

%


0.69

%


0.98

%


0.69

%

Nonperforming assets to ending loans, plus OREO

1.00

%


0.73

%


0.72

%


0.76

%


0.74

%


1.00

%


0.74

%

Nonperforming assets to total assets

0.63

%


0.47

%


0.46

%


0.52

%


0.50

%


0.63

%


0.50

%

Classified assets to total assets

0.94

%


1.00

%


1.00

%


0.98

%


0.98

%


0.94

%


0.98

%

Net charge-offs to average loans (annualized)

0.29

%


(0.02)%



0.18

%


0.13

%


0.02

%


0.15

%


0.13

%






















(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 for 2018 and a 35% tax rate for 2017.  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.

(2) December 31, 2018 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)






Three months ended,


Twelve months ended,


Dec. 31,


Dec. 31,


2018


2017


% Change


2018


2017


% Change

Interest income












  Loans and leases, including fees

$

126,580



$

74,347



70.3

%


$

447,187



$

280,111



59.6

%

  Investment securities












     Taxable

22,761



13,212



72.3

%


79,076



50,568



56.4

%

     Tax-exempt

3,896



1,571



148.0

%


13,428



5,918



126.9

%

        Total investment securities interest

26,657



14,783



80.3

%


92,504



56,486



63.8

%

  Other earning assets

192



(592)



132.4

%


691



(3,524)



119.6

%

       Total interest income

153,429



88,538



73.3

%


540,382



333,073



62.2

%













Interest expense












  Deposits

17,198



9,243



86.1

%


56,962



35,182



61.9

%

  Short-term borrowings

5,186



2,144



141.9

%


18,033



8,193



120.1

%

  Long-term borrowings

5,086



1,537



230.9

%


16,152



6,153



162.5

%

      Total interest expense

27,470



12,924



112.6

%


91,147



49,528



84.0

%

      Net interest income

125,959



75,614



66.6

%


449,235



283,545



58.4

%

  Provision for loan and lease losses

5,310



(205)



N/M


14,586



3,582



307.2

%

      Net interest income after provision for loan and lease losses

120,649



75,819



59.1

%


434,649



279,963



55.3

%













Noninterest income












  Service charges on deposit accounts

10,185



5,190



96.2

%


35,108



19,775



77.5

%

  Trust and wealth management fees

3,703



3,597



2.9

%


15,082



14,073



7.2

%

  Bankcard income

6,247



3,390



84.3

%


20,245



13,298



52.2

%

  Client derivative fees

1,433



2,047



(30.0)

%


7,682



6,418



19.7

%

  Net gains from sales of loans

1,428



1,171



21.9

%


6,071



5,169



17.5

%

  Net gains (losses) on sale of investment securities

36



19



89.5

%


(161)



1,649



(109.8)

%

  Other

6,472



2,968



118.1

%


19,355



15,760



22.8

%

      Total noninterest income

29,504



18,382



60.5

%


103,382



76,142



35.8

%













Noninterest expenses












  Salaries and employee benefits

51,505



35,439



45.3

%


188,990



132,560



42.6

%

  Net occupancy

6,322



4,252



48.7

%


24,215



17,397



39.2

%

  Furniture and equipment

3,498



1,969



77.7

%


14,908



8,443



76.6

%

  Data processing

5,599



3,768



48.6

%


28,077



14,022



100.2

%

  Marketing

1,651



1,060



55.8

%


7,598



3,201



137.4

%

  Communication

805



474



69.8

%


3,167



1,819



74.1

%

  Professional services

1,794



9,766



(81.6)

%


12,272



15,023



(18.3)

%

  State intangible tax

1,086



492



120.7

%


4,152



2,655



56.4

%

  FDIC assessments

1,018



943



8.0

%


3,969



3,944



0.6

%

  Loss (gain) - other real estate owned

41



219



(81.3)

%


373



642



(41.9)

%

  Other

10,033



24,516



(59.1)

%


36,089



40,236



(10.3)

%

      Total noninterest expenses

83,352



82,898



0.5

%


323,810



239,942



35.0

%

Income before income taxes

66,801



11,303



491.0

%


214,221



116,163



84.4

%

Income tax expense

11,787



(13,508)



(187.3)

%


41,626



19,376



114.8

%

      Net income

$

55,014



$

24,811



121.7

%


$

172,595



$

96,787



78.3

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.56



$

0.40





$

1.95



$

1.57




Net earnings per share - diluted

$

0.56



$

0.40





$

1.93



$

1.56




Dividends declared per share

$

0.20



$

0.17





$

0.78



$

0.68
















Return on average assets

1.59

%


1.13

%




1.37

%


1.12

%



Return on average shareholders' equity

10.68

%


10.70

%




9.85

%


10.78

%















Interest income

$

153,429



$

88,538



73.3

%


$

540,382



$

333,073



62.2

%

Tax equivalent adjustment

1,442



1,387



4.0

%


5,147



5,259



(2.1)

%

   Interest income - tax equivalent

154,871



89,925



72.2

%


545,529



338,332



61.2

%

Interest expense

27,470



12,924



112.6

%


91,147



49,528



84.0

%

   Net interest income - tax equivalent

$

127,401



$

77,001



65.5

%


$

454,382



$

288,804



57.3

%













Net interest margin

4.16

%


3.75

%




4.05

%


3.59

%



Net interest margin (fully tax equivalent) (1)

4.21

%


3.82

%




4.10

%


3.66

%















Full-time equivalent employees

2,073



1,304






















(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 for 2018 and a 35% tax rate for 2017. 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.

N/M  = Not meaningful.












 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)














2018


Fourth


Third


Second


First


Full


% Change


Quarter


Quarter


Quarter


Quarter


Year


Linked Qtr.

Interest income












  Loans and leases, including fees

$

126,580



$

123,397



$

122,290



$

74,920



$

447,187



2.6

%

  Investment securities












     Taxable

22,761



21,801



20,844



13,670



79,076



4.4

%

     Tax-exempt

3,896



3,807



4,068



1,657



13,428



2.3

%

        Total investment securities interest

26,657



25,608



24,912



15,327



92,504



4.1

%

  Other earning assets

192



215



177



107



691



(10.7)

%

       Total interest income

153,429



149,220



147,379



90,354



540,382



2.8

%













Interest expense












  Deposits

17,198



14,672



14,794



10,298



56,962



17.2

%

  Short-term borrowings

5,186



6,052



4,132



2,663



18,033



(14.3)

%

  Long-term borrowings

5,086



5,011



4,474



1,581



16,152



1.5

%

      Total interest expense

27,470



25,735



23,400



14,542



91,147



6.7

%

      Net interest income

125,959



123,485



123,979



75,812



449,235



2.0

%

  Provision for loan and lease losses

5,310



3,238



3,735



2,303



14,586



64.0

%

      Net interest income after provision for loan and lease losses

120,649



120,247



120,244



73,509



434,649



0.3

%













Noninterest income












  Service charges on deposit accounts

10,185



10,316



9,568



5,039



35,108



(1.3)

%

  Trust and wealth management fees

3,703



3,728



3,697



3,954



15,082



(0.7)

%

  Bankcard income

6,247



5,261



5,343



3,394



20,245



18.7

%

  Client derivative fees

1,433



3,029



1,463



1,757



7,682



(52.7)

%

  Net gains from sales of loans

1,428



1,739



2,316



588



6,071



(17.9)

%

  Net gains (losses) on sale of investment securities

36



(167)



(30)



0



(161)



121.6

%

  Other

6,472



4,778



5,899



2,206



19,355



35.5

%

      Total noninterest income

29,504



28,684



28,256



16,938



103,382



2.9

%













Noninterest expenses












  Salaries and employee benefits

51,505



50,852



55,531



31,102



188,990



1.3

%

  Net occupancy

6,322



6,765



6,631



4,497



24,215



(6.5)

%

  Furniture and equipment

3,498



4,072



5,298



2,040



14,908



(14.1)

%

  Data processing

5,599



4,502



14,304



3,672



28,077



24.4

%

  Marketing

1,651



2,502



2,644



801



7,598



(34.0)

%

  Communication

805



785



1,118



459



3,167



2.5

%

  Professional services

1,794



2,621



5,659



2,198



12,272



(31.6)

%

  State intangible tax

1,086



1,223



1,078



765



4,152



(11.2)

%

  FDIC assessments

1,018



734



1,323



894



3,969



38.7

%

  Loss (gain) - other real estate owned

41



538



(283)



77



373



(92.4)

%

  Other

10,033



10,821



9,452



5,783



36,089



(7.3)

%

      Total noninterest expenses

83,352



85,415



102,755



52,288



323,810



(2.4)

%

Income before income taxes

66,801



63,516



45,745



38,159



214,221



5.2

%

Income tax expense

11,787



12,859



9,327



7,653



41,626



(8.3)

%

      Net income

$

55,014



$

50,657



$

36,418



$

30,506



$

172,595



8.6

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.56



$

0.52



$

0.37



$

0.49



$

1.95




Net earnings per share - diluted

$

0.56



$

0.51



$

0.37



$

0.49



$

1.93




Dividends declared per share

$

0.20



$

0.20



$

0.19



$

0.19



$

0.78
















Return on average assets

1.59

%


1.45

%


1.05

%


1.40

%


1.37

%



Return on average shareholders' equity

10.68

%


9.94

%


7.36

%


13.31

%


9.85

%















Interest income

$

153,429



$

149,220



$

147,379



$

90,354



$

540,382



2.8

%

Tax equivalent adjustment

1,442



1,567



1,420



718



5,147



(8.0)

%

   Interest income - tax equivalent

154,871



150,787



148,799



91,072



545,529



2.7

%

Interest expense

27,470



25,735



23,400



14,542



91,147



6.7

%

   Net interest income - tax equivalent

$

127,401



$

125,052



$

125,399



$

76,530



$

454,382



1.9

%













Net interest margin

4.16

%


4.06

%


4.10

%


3.80

%


4.05

%



Net interest margin (fully tax equivalent) (1)

4.21

%


4.12

%


4.15

%


3.84

%


4.10

%















Full-time equivalent employees

2,073



2,028



2,118



1,289


















(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 for 2018 and a 35% tax rate for 2017.  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.

N/M = Not meaningful.












 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)












2017


Fourth


Third


Second


First


Full


Quarter


Quarter


Quarter


Quarter


Year

Interest income










  Loans and leases, including fees

$

74,347



$

71,148



$

67,748



$

66,868



$

280,111


  Investment securities










     Taxable

13,212



13,150



12,598



11,608



50,568


     Tax-exempt

1,571



1,537



1,457



1,353



5,918


        Total investment securities interest

14,783



14,687



14,055



12,961



56,486


  Other earning assets

(592)



(917)



(1,014)



(1,001)



(3,524)


       Total interest income

88,538



84,918



80,789



78,828



333,073












Interest expense










  Deposits

9,243



10,335



8,679



6,925



35,182


  Short-term borrowings

2,144



2,566



2,051



1,432



8,193


  Long-term borrowings

1,537



1,538



1,539



1,539



6,153


      Total interest expense

12,924



14,439



12,269



9,896



49,528


      Net interest income

75,614



70,479



68,520



68,932



283,545


  Provision for loan and lease losses

(205)



2,953



467



367



3,582


      Net interest income after provision for loan and lease losses

75,819



67,526



68,053



68,565



279,963












Noninterest income










  Service charges on deposit accounts

5,190



5,169



4,772



4,644



19,775


  Trust and wealth management fees

3,597



3,324



3,405



3,747



14,073


  Bankcard income

3,390



3,272



3,501



3,135



13,298


  Client derivative fees

2,047



1,779



1,489



1,103



6,418


  Net gains from sales of loans

1,171



1,455



1,327



1,216



5,169


  Net gains on sale of investment securities

19



276



838



516



1,649


  Other

2,968



7,667



2,122



3,003



15,760


      Total noninterest income

18,382



22,942



17,454



17,364



76,142












Noninterest expenses










  Salaries and employee benefits

35,439



33,827



31,544



31,750



132,560


  Net occupancy

4,252



4,328



4,302



4,515



17,397


  Furniture and equipment

1,969



2,161



2,136



2,177



8,443


  Data processing

3,768



3,455



3,501



3,298



14,022


  Marketing

1,060



649



982



510



3,201


  Communication

474



430



468



447



1,819


  Professional services

9,766



2,030



1,469



1,758



15,023


  State intangible tax

492



721



721



721



2,655


  FDIC assessments

943



1,051



1,018



932



3,944


  Loss (gain) - other real estate owned

219



237



162



24



642


  Other

24,516



5,554



5,253



4,913



40,236


      Total noninterest expenses

82,898



54,443



51,556



51,045



239,942


Income before income taxes

11,303



36,025



33,951



34,884



116,163


Income tax expense (benefit)

(13,508)



11,199



11,215



10,470



19,376


      Net income

$

24,811



$

24,826



$

22,736



$

24,414



$

96,787












ADDITIONAL DATA










Net earnings per share - basic

$

0.40



$

0.40



$

0.37



$

0.40



$

1.57


Net earnings per share - diluted

$

0.40



$

0.40



$

0.37



$

0.39



$

1.56


Dividends declared per share

$

0.17



$

0.17



$

0.17



$

0.17



$

0.68












Return on average assets

1.13

%


1.13

%


1.06

%


1.18

%


1.12

%

Return on average shareholders' equity

10.70

%


10.85

%


10.25

%


11.36

%


10.78

%











Interest income

$

88,538



$

84,918



$

80,789



$

78,828



$

333,073


Tax equivalent adjustment

1,387



1,353



1,294



1,225



5,259


   Interest income - tax equivalent

89,925



86,271



82,083



80,053



338,332


Interest expense

12,924



14,439



12,269



9,896



49,528


   Net interest income - tax equivalent

$

77,001



$

71,832



$

69,814



$

70,157



$

288,804












Net interest margin

3.75

%


3.50

%


3.50

%


3.63

%


3.59

%

Net interest margin (fully tax equivalent) (1)

3.82

%


3.57

%


3.56

%


3.70

%


3.66

%











Full-time equivalent employees

1,304



1,363



1,429



1,424














(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 for 2018 and a 35% tax rate for 2017. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.


 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)
















Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


% Change


% Change


2018


2018


2018


2018


2017


Linked Qtr.


Comparable Qtr.

ASSETS














     Cash and due from banks

$

236,221



$

193,288



$

216,667



$

116,581



$

150,650



22.2

%


56.8

%

     Interest-bearing deposits with other banks

37,738



28,989



37,915



10,200



33,974



30.2

%


11.1

%

     Investment securities available-for-sale

2,779,255



2,626,726



2,654,909



1,359,381



1,349,408



5.8

%


106.0

%

     Investment securities held-to-maturity

429,328



434,369



443,957



633,722



654,008



(1.2)

%


(34.4)

%

     Other investments

115,660



115,757



95,004



53,070



53,140



(0.1)

%


117.7

%

     Loans held for sale

4,372



13,277



15,821



8,048



11,502



(67.1)

%


(62.0)

%

     Loans and leases














       Commercial and industrial

2,514,661



2,426,590



2,440,596



1,943,741



1,912,743



3.6

%


31.5

%

       Lease financing

93,415



95,317



96,198



81,617



89,347



(2.0)

%


4.6

%

       Construction real estate

548,935



565,077



555,468



494,665



467,730



(2.9)

%


17.4

%

       Commercial real estate

3,754,681



3,868,143



3,888,993



2,544,051



2,490,091



(2.9)

%


50.8

%

       Residential real estate

955,646



932,962



918,904



468,584



471,391



2.4

%


102.7

%

       Home equity

817,282



816,133



835,031



483,643



493,604



0.1

%


65.6

%

       Installment

93,212



97,413



100,726



39,248



41,586



(4.3)

%


124.1

%

       Credit card

46,382



45,741



48,665



46,472



46,691



1.4

%


(0.7)

%

          Total loans

8,824,214



8,847,376



8,884,581



6,102,021



6,013,183



(0.3)

%


46.7

%

       Less:














          Allowance for loan and lease losses

56,542



57,715



54,076



54,380



54,021



(2.0)

%


4.7

%

                Net loans

8,767,672



8,789,661



8,830,505



6,047,641



5,959,162



(0.3)

%


47.1

%

     Premises and equipment

215,652



219,940



223,950



127,046



125,036



(1.9)

%


72.5

%

     Goodwill

880,251



881,033



883,025



204,083



204,084



(0.1)

%


331.3

%

     Other intangibles

50,779



53,327



51,631



4,970



5,295



(4.8)

%


859.0

%

     Accrued interest and other assets

469,732



486,300



466,783



333,687



350,664



(3.4)

%


34.0

%...