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First Financial Bancorp Announces Third Quarter Financial Results

- Third Quarter 2019 Earnings per Diluted Share of $0.51

- 3.7% Loan Growth on an Annualized Basis

- 3.96% fully tax equivalent net interest margin

- Strong noninterest income of $33.1 million

- Successful closing of Bannockburn acquisition

CINCINNATI, Oct. 17, 2019 /PRNewswire/ -- First Financial Bancorp. (FFBC) ("First Financial" or the "Company") announced financial results for the third quarter 2019.

For the three months ended September 30, 2019, the Company reported net income of $50.9 million, or $0.51 per diluted common share. These results compare to net income of $52.7 million, or $0.53 per diluted common share, for the second quarter of 2019 and $50.7 million, or $0.51 per diluted common share, for the third quarter of 2018. Income before taxes was negatively impacted by $5.2 million of severance and merger-related items and $0.7 million of branch consolidation costs, which combined to reduce earnings per diluted common share by $0.05 after income taxes. For the nine months ended September 30, 2019, First Financial had earnings per diluted common share of $1.51 compared to $1.36 for the same period in 2018.

Return on average assets for the third quarter of 2019 was 1.41% while return on average tangible common equity was 16.15%. These compare to returns on average assets of 1.50% and 1.45%, and returns on average tangible common equity of 17.33% and 18.52%, in the second quarter of 2019 and the third quarter of 2018, respectively.

Third quarter 2019 highlights include:

  • After adjustments(1) for merger-related and nonrecurring items:
  • Loan balances grew 3.7% on an annualized basis
  • Net interest margin of 3.96% on a fully tax-equivalent basis(1)
  • Noninterest income of $33.1 million
  • Noninterest expenses of $86.2 million, or $80.3 million as adjusted(1)
  • ALLL declined to $56.6 million, or 0.62% of loans; Improvement in nonperforming and classified asset levels; elevated net charge-offs related to previously discussed franchise relationships
  • Strong capital ratios

  


(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, remarked, "We are pleased to announce strong third quarter performance buoyed by consistent earnings, strong fee income and our ability to maintain a solid net interest margin. Annualized loan growth, fee income and net interest margin met or surpassed our expectations, and resulted in adjusted(1) earnings per share of $0.56 and an adjusted(1) return on assets of 1.54%."

Mr. Brown continued, "Record loan originations were more than enough to offset a spike in payoffs, resulting in annualized loan growth of 3.7% for the quarter. Despite interest rate headwinds, net interest margin was at the high end of our expectations as we were able to proactively reduce deposit costs. Our focus will remain on disciplined deposit pricing to help mitigate the impact of further fed rate reductions. Credit trends are improving as both nonperforming and classified asset balances declined during the period; however we were disappointed in elevated net charge-offs, which were driven by three large franchise relationships discussed in prior periods. Overall, we remain satisfied with our strong operating performance in the midst of a challenging interest rate environment."

Mr Brown further noted, "We were also excited to complete the purchase of Bannockburn at the end of August. This strategic acquisition broadens our product offerings to middle market clients, expands our customer base and increases fee income, consistent with our stated objectives."

Mr. Brown concluded, "We repurchased 1.1 million shares during the quarter, which reflects our intention to maximize shareholder value while maintaining strong capital levels. The share repurchases and the acquisition of Bannockburn modestly impacted our capital ratios. We believe that our strong capital position provides the flexibility for additional capital deployment opportunities in the future."

Full detail of the Company's third quarter and year to date 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, October 18, 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 10135470. 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 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, 2018, 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 September 30, 2019, the Company had $14.5 billion in assets, $9.1 billion in loans, $10.1 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 $2.9 billion in assets under management as of September 30, 2019. The Company operated 145 full service banking centers as of September 30, 2019, primarily in Ohio, Indiana and Kentucky, 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,


Nine months ended,


Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


Sep. 30,


Sep. 30,


2019


2019


2019


2018


2018


2019


2018

RESULTS OF OPERATIONS














Net income

$

50,856



$

52,703



$

45,839



$

55,014



$

50,657



$

149,398



$

117,581


Net earnings per share - basic

$

0.52



$

0.54



$

0.47



$

0.56



$

0.52



$

1.52



$

1.37


Net earnings per share - diluted

$

0.51



$

0.53



$

0.47



$

0.56



$

0.51



$

1.51



$

1.36


Dividends declared per share

$

0.23



$

0.22



$

0.22



$

0.20



$

0.20



$

0.67



$

0.58
















KEY FINANCIAL RATIOS














Return on average assets

1.41

%


1.50

%


1.33

%


1.59

%


1.45

%


1.41

%


1.29

%

Return on average shareholders' equity

9.13

%


9.85

%


8.88

%


10.68

%


9.94

%


9.29

%


9.50

%

Return on average tangible shareholders' equity

16.15

%


17.33

%


15.95

%


19.63

%


18.52

%


16.48

%


16.42

%















Net interest margin

3.91

%


3.99

%


4.05

%


4.16

%


4.06

%


3.98

%


4.01

%

Net interest margin (fully tax equivalent) (1)

3.96

%


4.04

%


4.10

%


4.21

%


4.12

%


4.03

%


4.06

%















Ending shareholders' equity as a percent of ending assets

15.62

%


15.16

%


15.14

%


14.86

%


14.70

%


15.62

%


14.70

%

Ending tangible shareholders' equity as a percent of:














Ending tangible assets

9.17

%


9.34

%


9.15

%


8.79

%


8.53

%


9.17

%


8.53

%

Risk-weighted assets

11.35

%


11.82

%


11.61

%


11.20

%


10.77

%


11.35

%


10.77

%















Average shareholders' equity as a percent of average assets

15.43

%


15.22

%


15.01

%


14.84

%


14.62

%


15.23

%


13.54

%

Average tangible shareholders' equity as a percent of














average tangible assets

9.35

%


9.26

%


8.95

%


8.66

%


8.42

%


9.19

%


8.31

%















Book value per share

$

22.59



$

22.18



$

21.60



$

21.23



$

20.79



$

22.59



$

20.79


Tangible book value per share

$

12.33



$

12.79



$

12.19



$

11.72



$

11.25



$

12.33



$

11.25
















Common equity tier 1 ratio (2)

11.53

%


12.00

%


12.03

%


11.87

%


11.52

%


11.53

%


11.52

%

Tier 1 ratio (2)

11.93

%


12.40

%


12.43

%


12.28

%


11.93

%


11.93

%


11.93

%

Total capital ratio (2)

13.64

%


14.20

%


14.24

%


14.10

%


13.77

%


13.64

%


13.77

%

Leverage ratio (2)

9.75

%


10.02

%


9.84

%


9.71

%


9.41

%


9.75

%


9.41

%















AVERAGE BALANCE SHEET ITEMS














Loans (3)

$

9,014,092



$

8,852,662



$

8,773,310



$

8,766,302



$

8,848,710



$

8,880,904



$

7,943,737


Investment securities

3,290,666



3,408,994



3,355,732



3,204,758



3,168,044



3,351,559



2,793,510


Interest-bearing deposits with other banks

38,569



33,255



34,709



32,013



39,873



35,525



32,116


Total earning assets

$

12,343,327



$

12,294,911



$

12,163,751



$

12,003,073



$

12,056,627



$

12,267,988



$

10,769,363


Total assets

$

14,320,514



$

14,102,733



$

13,952,551



$

13,768,958



$

13,822,675



$

14,126,615



$

12,221,358


Noninterest-bearing deposits

$

2,513,458



$

2,484,214



$

2,457,587



$

2,476,773



$

2,388,976



$

2,485,291



$

2,129,924


Interest-bearing deposits

7,504,708



7,612,146



7,610,092



7,573,069



7,499,112



7,575,263



6,939,021


Total deposits

$

10,018,166



$

10,096,360



$

10,067,679



$

10,049,842



$

9,888,088



$

10,060,554



$

9,068,945


Borrowings

$

1,816,983



$

1,656,570



$

1,587,068



$

1,509,642



$

1,748,415



$

1,687,716



$

1,344,325


Shareholders' equity

$

2,210,327



$

2,146,997



$

2,094,234



$

2,042,884



$

2,021,400



$

2,150,945



$

1,654,322
















CREDIT QUALITY RATIOS













Allowance to ending loans

0.62

%


0.69

%


0.64

%


0.64

%


0.65

%


0.62

%


0.65

%

Allowance to nonaccrual loans

93.18

%


119.86

%


95.40

%


79.97

%


136.22

%


93.18

%


136.22

%

Allowance to nonperforming loans

71.46

%


69.33

%


68.94

%


65.13

%


92.08

%


71.46

%


92.08

%

Nonperforming loans to total loans

0.87

%


0.99

%


0.93

%


0.98

%


0.71

%


0.87

%


0.71

%

Nonperforming assets to ending loans, plus OREO

0.89

%


1.00

%


0.95

%


1.00

%


0.73

%


0.89

%


0.73

%

Nonperforming assets to total assets

0.56

%


0.62

%


0.60

%


0.63

%


0.47

%


0.56

%


0.47

%

Classified assets to total assets

0.92

%


1.02

%


1.01

%


0.94

%


1.00

%


0.92

%


1.00

%

Net charge-offs to average loans (annualized)

0.45

%


0.08

%


0.64

%


0.29

%


(0.02)

%


0.39

%


0.09

%


(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 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)

September 30, 2019 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,


Nine months ended,


Sep. 30,


Sep. 30,


2019


2018


% Change


2019


2018


% Change

Interest income












Loans and leases, including fees

$

126,786



$

123,397



2.7

%


$

376,207



$

320,607



17.3

%

Investment securities












Taxable

22,180



21,801



1.7

%


70,031



56,315



24.4

%

Tax-exempt

4,457



3,807



17.1

%


13,051



9,532



36.9

%

Total investment securities interest

26,637



25,608



4.0

%


83,082



65,847



26.2

%

Other earning assets

222



215



3.3

%


638



499



27.9

%

Total interest income

153,645



149,220



3.0

%


459,927



386,953



18.9

%













Interest expense












Deposits

20,151



14,672



37.3

%


60,006



39,764



50.9

%

Short-term borrowings

7,199



6,052



19.0

%


19,805



12,847



54.2

%

Long-term borrowings

4,760



5,011



(5.0)

%


14,764



11,066



33.4

%

Total interest expense

32,110



25,735



24.8

%


94,575



63,677



48.5

%

Net interest income

121,535



123,485



(1.6)

%


365,352



323,276



13.0

%

Provision for loan and lease losses

5,228



3,238



61.5

%


25,969



9,276



180.0

%

Net interest income after provision for loan and lease losses

116,307



120,247



(3.3)

%


339,383



314,000



8.1

%













Noninterest income












Service charges on deposit accounts

9,874



10,316



(4.3)

%


28,596



24,923



14.7

%

Trust and wealth management fees

3,718



3,728



(0.3)

%


11,731



11,379



3.1

%

Bankcard income

3,316



5,261



(37.0)

%


15,399



13,998



10.0

%

Client derivative fees

4,859



3,029



60.4

%


11,468



6,249



83.5

%

Foreign exchange income

1,708



0



N/M



1,725



0



N/M


Net gains from sales of loans

4,806



1,739



176.4

%


10,128



4,643



118.1

%

Net gains (losses) on sale of investment securities

105



(167)



162.9

%


(110)



(197)



(44.2)

%

Other

4,754



4,778



(0.5)

%


15,668



12,883



21.6

%

Total noninterest income

33,140



28,684



15.5

%


94,605



73,878



28.1

%













Noninterest expenses












Salaries and employee benefits

53,212



50,852



4.6

%


155,109



137,485



12.8

%

Net occupancy

5,509



6,765



(18.6)

%


17,735



17,893



(0.9)

%

Furniture and equipment

4,120



4,072



1.2

%


11,758



11,410



3.0

%

Data processing

5,774



4,502



28.3

%


15,885



22,478



(29.3)

%

Marketing

1,346



2,502



(46.2)

%


4,928



5,947



(17.1)

%

Communication

910



785



15.9

%


2,385



2,362



1.0

%

Professional services

4,771



2,621



82.0

%


9,062



10,478



(13.5)

%

State intangible tax

1,445



1,223



18.2

%


4,062



3,066



32.5

%

FDIC assessments

(1,097)



734



(249.5)

%


918



2,951



(68.9)

%

Intangible amortization

2,432



2,486



(2.2)

%


6,521



5,130



27.1

%

Other

7,804



8,873



(12.0)

%


20,740



21,258



(2.4)

%

Total noninterest expenses

86,226



85,415



0.9

%


249,103



240,458



3.6

%

Income before income taxes

63,221



63,516



(0.5)

%


184,885



147,420



25.4

%

Income tax expense

12,365



12,859



(3.8)

%


35,487



29,839



18.9

%

Net income

$

50,856



$

50,657



0.4

%


$

149,398



$

117,581



27.1

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.52



$

0.52





$

1.52



$

1.37




Net earnings per share - diluted

$

0.51



$

0.51





$

1.51



$

1.36




Dividends declared per share

$

0.23



$

0.20





$

0.67



$

0.58
















Return on average assets

1.41

%


1.45

%




1.41

%


1.29

%



Return on average shareholders' equity

9.13

%


9.94

%




9.29

%


9.50

%















Interest income

$

153,645



$

149,220



3.0

%


$

459,927



$

386,953



18.9

%

Tax equivalent adjustment

1,759



1,567



12.3

%


4,698



3,705



26.8

%

Interest income - tax equivalent

155,404



150,787



3.1

%


464,625



390,658



18.9

%

Interest expense

32,110



25,735



24.8

%


94,575



63,677



48.5

%

Net interest income - tax equivalent

$

123,294



$

125,052



(1.4)

%


$

370,050



$

326,981



13.2

%













Net interest margin

3.91

%


4.06

%




3.98

%


4.01

%



Net interest margin (fully tax equivalent) (1)

3.96

%


4.12

%




4.03

%


4.06

%















Full-time equivalent employees

2,064



2,028






















(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)












2019


Third


Second


First


Full


% Change


Quarter


Quarter


Quarter


Year


Linked Qtr.

Interest income










Loans and leases, including fees

$

126,786



$

126,365



$

123,056



$

376,207



0.3

%

Investment securities










Taxable

22,180



23,616



24,235



70,031



(6.1)

%

Tax-exempt

4,457



4,336



4,258



13,051



2.8

%

Total investment securities interest

26,637



27,952



28,493



83,082



(4.7)

%

Other earning assets

222



206



210



638



7.8

%

Total interest income

153,645



154,523



151,759



459,927



(0.6)

%











Interest expense










Deposits

20,151



20,612



19,243



60,006



(2.2)

%

Short-term borrowings

7,199



6,646



5,960



19,805



8.3

%

Long-term borrowings

4,760



4,963



5,041



14,764



(4.1)

%

Total interest expense

32,110



32,221



30,244



94,575



(0.3)

%

Net interest income

121,535



122,302



121,515



365,352



(0.6)

%

Provision for loan and lease losses

5,228



6,658



14,083



25,969



(21.5)

%

Net interest income after provision for loan and lease losses

116,307



115,644



107,432



339,383



0.6

%











Noninterest income










Service charges on deposit accounts

9,874



9,819



8,903



28,596



0.6

%

Trust and wealth management fees

3,718



3,943



4,070



11,731



(5.7)

%

Bankcard income

3,316



6,497



5,586



15,399



(49.0)

%

Client derivative fees

4,859



4,905



1,704



11,468



(0.9)

%

Foreign exchange income

1,708



17



0



1,725



N/M


Net gains from sales of loans

4,806



3,432



1,890



10,128



40.0

%

Net gains (losses) on sale of investment securities

105



(37)



(178)



(110)



383.8

%

Other

4,754



6,062



4,852



15,668



(21.6)

%

Total noninterest income

33,140



34,638



26,827



94,605



(4.3)

%











Noninterest expenses










Salaries and employee benefits

53,212



53,985



47,912



155,109



(1.4)

%

Net occupancy

5,509



5,596



6,630



17,735



(1.6)

%

Furniture and equipment

4,120



4,222



3,416



11,758



(2.4)

%

Data processing

5,774



4,984



5,127



15,885



15.9

%

Marketing

1,346



1,976



1,606



4,928



(31.9)

%

Communication

910



747



728



2,385



21.8

%

Professional services

4,771



2,039



2,252



9,062



134.0

%

State intangible tax

1,445



1,307



1,310



4,062



10.6

%

FDIC assessments

(1,097)



1,065



950



918



(203.0)

%

Intangible amortization

2,432



2,044



2,045



6,521



19.0

%

Other

7,804



6,413



6,523



20,740



21.7

%

Total noninterest expenses

86,226



84,378



78,499



249,103



2.2

%

Income before income taxes

63,221



65,904



55,760



184,885



(4.1)

%

Income tax expense

12,365



13,201



9,921



35,487



(6.3)

%

Net income

$

50,856



$

52,703



$

45,839



$

149,398



(3.5)

%











ADDITIONAL DATA










Net earnings per share - basic

$

0.52



$

0.54



$

0.47



$

1.52




Net earnings per share - diluted

$

0.51



$

0.53



$

0.47



$

1.51




Dividends declared per share

$

0.23



$

0.22



$

0.22



$

0.67














Return on average assets

1.41

%


1.50

%


1.33

%


1.41

%



Return on average shareholders' equity

9.13

%


9.85

%


8.88

%


9.29

%













Interest income

$

153,645



$

154.523



$

151,759



$

459,927



(0.6)

%

Tax equivalent adjustment

1,759



1.416



1,523



4,698



24.2

%

Interest income - tax equivalent

155,404



155.939



153,282



464,625



(0.3)

%

Interest expense

32,110



32.221



30,244



94,575



(0.3)

%

Net interest income - tax equivalent

$

123,294



$

123.718



$

123,038



$

370,050



(0.3)

%











Net interest margin

3.91

%


3.99

%


4.05

%


3.98

%



Net interest margin (fully tax equivalent) (1)

3.96

%


4.04

%


4.10

%


4.03

%













Full-time equivalent employees

2,064



2,076



2,087
















(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)












2018


Fourth


Third


Second


First


Full


Quarter


Quarter


Quarter


Quarter


Year

Interest income










Loans and leases, including fees

$

126,580



$

123,397



$

122,290



$

74,920



$

447,187


Investment securities










Taxable

22,761



21,801



20,844



13,670



79,076


Tax-exempt

3,896



3,807



4,068



1,657



13,428


Total investment securities interest

26,657



25,608



24,912



15,327



92,504


Other earning assets

192



215



177



107



691


Total interest income

153,429



149,220



147,379



90,354



540,382












Interest expense










Deposits

17,198



14,672



14,794



10,298



56,962


Short-term borrowings

5,186



6,052



4,132



2,663



18,033


Long-term borrowings

5,086



5,011



4,474



1,581



16,152


Total interest expense

27,470



25,735



23,400



14,542



91,147


Net interest income

125,959



123,485



123,979



75,812



449,235


Provision for loan and lease losses

5,310



3,238



3,735



2,303



14,586


Net interest income after provision for loan and lease losses

120,649



120,247



120,244



73,509



434,649












Noninterest income










Service charges on deposit accounts

10,185



10,316



9,568



5,039



35,108


Trust and wealth management fees

3,703



3,728



3,697



3,954



15,082


Bankcard income

6,247



5,261



5,343



3,394



20,245


Client derivative fees

1,433



3,029



1,463



1,757



7,682


Net gains from sales of loans

1,428



1,739



2,316



588



6,071


Net gains on sale of investment securities

36



(167)



(30)



0



(161)


Other

6,472



4,778



5,899



2,206



19,355


Total noninterest income

29,504



28,684



28,256



16,938



103,382












Noninterest expenses










Salaries and employee benefits

51,505



50,852



55,531



31,102



188,990


Net occupancy

6,322



6,765



6,631



4,497



24,215


Furniture and equipment

3,498



4,072



5,298



2,040



14,908


Data processing

5,599



4,502



14,304



3,672



28,077


Marketing

1,651



2,502



2,644



801



7,598


Communication

805



785



1,118



459



3,167


Professional services

1,794



2,621



5,659



2,198



12,272


State intangible tax

1,086



1,223



1,078



765



4,152


FDIC assessments

1,018



734



1,323



894



3,969


Intangible amortization

2,229



2,486



2,364



280



7,359


Other

7,845



8,873



6,805



5,580



29,103


Total noninterest expenses

83,352



85,415



102,755



52,288



323,810


Income before income taxes

66,801



63,516



45,745



38,159



214,221


Income tax expense (benefit)

11,787



12,859



9,327



7,653



41,626


Net income

$

55,014



$

50,657



$

36,418



$

30,506



$

172,595












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


Tax equivalent adjustment

1,442



1,567



1,420



718



5,147


Interest income - tax equivalent

154,871



150,787



148,799



91,072



545,529


Interest expense

27,470



25,735



23,400



14,542



91,147


Net interest income - tax equivalent

$

127,401



$

125,052



$

125,399



$

76,530



$

454,382












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. 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)
















Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


Sep. 30,


% Change


% Change


2019


2019


2019


2018


2018


Linked Qtr.


Comp Qtr.

ASSETS














Cash and due from banks

$

242,482



$

169,694



$

169,004



$

236,221



$

193,288



42.9

%


25.5

%

Interest-bearing deposits with other banks

39,669



101,668



50,224



37,738



28,989



(61.0)

%


36.8

%

Investment securities available-for-sale

2,850,502



3,152,970



3,113,811



2,779,255



2,626,726



(9.6)

%


8.5

%

Investment securities held-to-maturity

148,778



154,327



158,305



429,328



434,369



(3.6)

%


(65.7)

%

Other investments

124,965



127,439



115,731



115,660



115,757



(1.9)

%


8.0

%

Loans held for sale

23,528



20,244



8,217



4,372



13,277



16.2

%


77.2

%

Loans and leases














Commercial and industrial

2,470,017



2,547,997



2,543,427



2,514,661



2,426,590



(3.1)

%


1.8

%

Lease financing

92,616



90,638



95,573



93,415



95,317



2.2

%


(2.8)

%

Construction real estate

515,960



497,683



458,113



548,935



565,077



3.7

%


(8.7)

%

Commercial real estate

4,015,908



3,903,654



3,802,179



3,754,681



3,868,143



2.9

%


3.8

%

Residential real estate

1,055,007



1,015,820



975,120



955,646



932,962



3.9

%


13.1

%

Home equity

776,885



787,139



797,118



817,282



816,133



(1.3)

%


(4.8)

%

Installment

88,275



89,149



90,689



93,212



97,413



(1.0)

%


(9.4)

%

Credit card

49,010



48,706



46,982



46,382



45,741



0.6

%


7.1

%

Total loans

9,063,678



8,980,786



8,809,201



8,824,214



8,847,376



0.9

%


2.4

%

Less:














Allowance for loan and lease losses

56,552



61,549



56,722



56,542



57,715



(8.1)

%


(2.0)

%

Net loans

9,007,126



8,919,237



8,752,479



8,767,672



8,789,661



1.0

%


2.5

%

Premises and equipment

213,681



211,313



210,676



215,652



219,940



1.1

%


(2.8)

%

Goodwill

937,689



879,727



879,727



880,251



881,033



6.6

%


6.4

%

Other intangibles

79,506



36,349



38,571



40,805



43,356



118.7

%


83.4

%

Accrued interest and other assets

812,519



664,695



577,518



479,706



496,271



22.2

%


63.7

%

Total Assets

$

14,480,445



$

14,437,663



$

14,074,263



$

13,986,660



$

13,842,667



0.3

%


4.6

%















LIABILITIES














Deposits














Interest-bearing demand

$

2,316,301



$

2,332,692



$

2,235,036



$

2,307,071



$

2,284,271



(0.7)

%


1.4

%

Savings

2,924,200



2,953,114



3,100,894



3,167,325



3,134,944



(1.0)

%


(6.7)

%

Time

2,308,617



...