Press Release

First Financial Bancorp Announces Third Quarter 2018 Results

Company Release - 10/18/2018 4:15 PM ET

CINCINNATI, Oct. 18, 2018 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the third quarter of 2018.

For the three months ended September 30, 2018, the Company reported net income of $50.7 million, or $0.51 per diluted common share.  These results compare to net income of $36.4 million, or $0.37 per diluted common share, for the second quarter of 2018 and $24.8 million, or $0.40 per diluted common share, for the third quarter of 2017.   Net income was negatively impacted during the quarter by $6.3 million of merger related items, which reduced earnings per diluted common share by $0.07.  For the nine months ended September 30, 2018, First Financial had earnings per diluted common share of $1.36 compared to $1.16 for the same period in 2017.

Return on average assets for the third quarter of 2018 was 1.45% while return on average tangible common equity was 18.52%.  These compare to a return on average assets of 1.05% and return on average tangible common equity of 13.75% in the second quarter of 2018 and a return on average assets of 1.13% and a return on average tangible common equity of 14.11% in the third quarter of 2017.  On an adjusted(1) basis, third quarter 2018 return on average assets was 1.64% and return on average tangible common equity was 20.83%.

Third quarter 2018 highlights include:

  • After adjustments(1) for merger related items:
    • Net income of $0.58 per diluted common share
    • 1.64% return on average assets
    • 20.83% return on average tangible common equity
  • Total revenue of $152.8 million, as adjusted(1)
    • Net interest margin declined 3 basis points from the linked quarter to 4.12% on a fully tax equivalent basis(1)
    • Noninterest income increased $0.7 million to $29.3 million, as adjusted(1)
  • Noninterest expenses of $85.4 million, or $78.0 million as adjusted(1)
    • Efficiency ratio of 56.13% for the third quarter; 51.06% as adjusted(1)
  • Improved loan origination activity
    • Loan fundings increased 9% compared to the linked quarter
    • Origination commitments increased 15% compared to the linked quarter
  • Stable credit performance with provision expense of $3.2 million; annualized net recoveries of 2 basis points as a percentage of average loans

Archie Brown, President and Chief Executive Officer, commented, "We are pleased with our third quarter performance as it demonstrates the earnings power of the Company.  On an adjusted basis(1), earnings per share increased to $0.58 as our strong net interest margin, combined with improved efficiency, resulted in a top quartile return on assets and return on average tangible common equity."

(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.

Mr. Brown continued, "We are encouraged with the increases in loan fundings and commitments, however lower than expected credit line utilization and elevated payoffs led to a slight decline in overall balances. During the quarter we added depth to our commercial banking and business banking teams in addition to wealth advisors and mortgage loan officers and are approaching planned staffing levels in our targeted growth markets. We are optimistic that these investments will contribute to our planned revenue growth in 2019."

Mr. Brown concluded, "Our strong earnings for the quarter led to further strengthening of our capital ratios with tangible common equity increasing to 8.53% and tangible book value per share increasing to $11.25. As a result, in July our Board of Directors elected to increase the common dividend from $0.19 to $0.20 per share, which was the second dividend increase in 2018."

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 19, 2018 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 10124868.  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 the Form 10-K for the year ended December 31, 2017, as well as its 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, 2018, the Company had $13.8 billion in assets, $8.8 billion in loans, $9.8 billion in deposits and $2.0 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 $2.8 billion in assets under management as of September 30, 2018.  The Company's primary operating markets are located in Ohio, Indiana and Kentucky where it operated 159 banking centers as of September 30, 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,


Nine months ended,


Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


Sep. 30,


Sep. 30,


2018


2018


2018


2017


2017


2018


2017

RESULTS OF OPERATIONS














Net income

$

50,657



$

36,418



$

30,506



$

24,811



$

24,826



$

117,581



$

71,976


Net earnings per share - basic

$

0.52



$

0.37



$

0.49



$

0.40



$

0.40



$

1.37



$

1.17


Net earnings per share - diluted

$

0.51



$

0.37



$

0.49



$

0.40



$

0.40



$

1.36



$

1.16


Dividends declared per share

$

0.20



$

0.19



$

0.19



$

0.17



$

0.17



$

0.58



$

0.51
















KEY FINANCIAL RATIOS














Return on average assets

1.45

%


1.05

%


1.40

%


1.13

%


1.13

%


1.29

%


1.12

%

Return on average shareholders' equity

9.94

%


7.36

%


13.31

%


10.70

%


10.85

%


9.50

%


10.82

%

Return on average tangible shareholders' equity

18.52

%


13.75

%


17.18

%


13.85

%


14.11

%


16.42

%


14.16

%















Net interest margin

4.06

%


4.10

%


3.80

%


3.75

%


3.50

%


4.01

%


3.54

%

Net interest margin (fully tax equivalent) (1)

4.12

%


4.15

%


3.84

%


3.82

%


3.57

%


4.06

%


3.61

%















Ending shareholders' equity as a percent of ending assets

14.70

%


14.46

%


10.56

%


10.46

%


10.44

%


14.70

%


10.44

%

Ending tangible shareholders' equity as a percent of:














Ending tangible assets

8.53

%


8.30

%


8.41

%


8.30

%


8.25

%


8.53

%


8.25

%

Risk-weighted assets

10.77

%


10.52

%


10.09

%


10.15

%


9.95

%


10.77

%


9.95

%















Average shareholders' equity as a percent of average assets

14.62

%


14.33

%


10.53

%


10.54

%


10.42

%


13.54

%


10.38

%

Average tangible shareholders' equity as a percent of














    average tangible assets

8.42

%


8.16

%


8.35

%


8.34

%


8.21

%


8.31

%


8.13

%















Book value per share

$

20.79



$

20.56



$

15.11



$

14.99



$

14.74



$

20.79



$

14.74


Tangible book value per share

$

11.25



$

11.01



$

11.75



$

11.62



$

11.36



$

11.25



$

11.36
















Common equity tier 1 ratio (2)

11.52

%


11.15

%


10.77

%


10.63

%


10.53

%


11.52

%


10.53

%

Tier 1 ratio (2)

11.93

%


11.55

%


10.77

%


10.63

%


10.53

%


11.93

%


10.53

%

Total capital ratio (2)

13.77

%


13.36

%


13.17

%


13.07

%


12.98

%


13.77

%


12.98

%

Leverage ratio (2)

9.41

%


9.06

%


9.00

%


8.84

%


8.74

%


9.41

%


8.74

%















AVERAGE BALANCE SHEET ITEMS














Loans (3)

$

8,848,710



$

8,933,400



$

6,016,492



$

5,952,290



$

5,902,053



$

7,943,242



$

5,809,998


FDIC indemnification asset





1,502



7,413



8,932



495



10,250


Investment securities

3,168,044



3,157,339



2,042,781



2,020,040



2,041,785



2,793,510



1,995,101


Interest-bearing deposits with other banks

39,873



29,261



27,073



25,357



37,199



32,116



32,812


  Total earning assets

$

12,056,627



$

12,120,000



$

8,087,848



$

8,005,100



$

7,989,969



$

10,769,363



$

7,848,161


Total assets

$

13,822,675



$

13,956,360



$

8,830,176



$

8,731,956



$

8,716,917



$

12,221,358



$

8,570,777


Noninterest-bearing deposits

$

2,388,976



$

2,421,230



$

1,570,572



$

1,637,228



$

1,510,032



$

2,129,924



$

1,507,748


Interest-bearing deposits

7,499,112



7,961,405



5,332,740



5,202,412



5,170,365



6,939,021



5,057,285


  Total deposits

$

9,888,088



$

10,382,635



$

6,903,312



$

6,839,640



$

6,680,397



$

9,068,945



$

6,565,033


Borrowings

$

1,748,415



$

1,408,024



$

866,848



$

842,211



$

999,818



$

1,344,325



$

987,874


Shareholders' equity

$

2,021,400



$

2,000,093



$

929,474



$

920,194



$

908,057



$

1,654,322



$

889,760
















CREDIT QUALITY RATIOS













Allowance to ending loans

0.65

%


0.61

%


0.89

%


0.90

%


0.91

%


0.65

%


0.91

%

Allowance to nonaccrual loans

136.22

%


133.65

%


179.57

%


224.32

%


181.07

%


136.22

%


181.07

%

Allowance to nonperforming loans

92.08

%


86.80

%


120.24

%


129.77

%


109.48

%


92.08

%


109.48

%

Nonperforming loans to total loans

0.71

%


0.70

%


0.74

%


0.69

%


0.83

%


0.71

%


0.83

%

Nonperforming assets to ending loans, plus OREO

0.73

%


0.72

%


0.76

%


0.74

%


0.89

%


0.73

%


0.89

%

Nonperforming assets to total assets

0.47

%


0.46

%


0.52

%


0.50

%


0.60

%


0.47

%


0.60

%

Classified assets to total assets

1.00

%


1.00

%


0.98

%


0.98

%


1.08

%


1.00

%


1.08

%

Net charge-offs to average loans (annualized)

(0.02)

%


0.18

%


0.13

%


0.02

%


0.22

%


0.09

%


0.17

%

 

(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) September 30, 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,


Nine months ended,


Sep. 30,


Sep. 30,


2018


2017


% Change


2018


2017


% Change

Interest income












  Loans and leases, including fees

$

123,397



$

71,148



73.4

%


$

320,607



$

205,764



55.8

%

  Investment securities












     Taxable

21,801



13,150



65.8

%


56,315



37,356



50.8

%

     Tax-exempt

3,807



1,537



147.7

%


9,532



4,347



119.3

%

        Total investment securities interest

25,608



14,687



74.4

%


65,847



41,703



57.9

%

  Other earning assets

215



(917)



123.4

%


499



(2,932)



117.0

%

       Total interest income

149,220



84,918



75.7

%


386,953



244,535



58.2

%













Interest expense












  Deposits

14,672



10,335



42.0

%


39,764



25,939



53.3

%

  Short-term borrowings

6,052



2,566



135.9

%


12,847



6,049



112.4

%

  Long-term borrowings

5,011



1,538



225.8

%


11,066



4,616



139.7

%

      Total interest expense

25,735



14,439



78.2

%


63,677



36,604



74.0

%

      Net interest income

123,485



70,479



75.2

%


323,276



207,931



55.5

%

  Provision for loan and lease losses

3,238



2,953



9.7

%


9,276



3,787



144.9

%

      Net interest income after provision for loan and lease losses

120,247



67,526



78.1

%


314,000



204,144



53.8

%













Noninterest income












  Service charges on deposit accounts

10,316



5,169



99.6

%


24,923



14,585



70.9

%

  Trust and wealth management fees

3,728



3,324



12.2

%


11,379



10,476



8.6

%

  Bankcard income

5,261



3,272



60.8

%


13,998



9,908



41.3

%

  Client derivative fees

3,029



1,779



70.3

%


6,249



4,371



43.0

%

  Net gains from sales of loans

1,739



1,455



19.5

%


4,643



3,998



16.1

%

  Net gains (losses) on sale of investment securities

(167)



276



(160.5)

%


(197)



1,630



(112.1)

%

  Other

4,778



7,667



(37.7)

%


12,883



12,792



0.7

%

      Total noninterest income

28,684



22,942



25.0

%


73,878



57,760



27.9

%













Noninterest expenses












  Salaries and employee benefits

50,852



33,827



50.3

%


137,485



97,121



41.6

%

  Net occupancy

6,765



4,328



56.3

%


17,893



13,145



36.1

%

  Furniture and equipment

4,072



2,161



88.4

%


11,410



6,474



76.2

%

  Data processing

4,502



3,455



30.3

%


22,478



10,254



119.2

%

  Marketing

2,502



649



285.5

%


5,947



2,141



177.8

%

  Communication

785



430



82.6

%


2,362



1,345



75.6

%

  Professional services

2,621



2,030



29.1

%


10,478



5,257



99.3

%

  State intangible tax

1,223



721



69.6

%


3,066



2,163



41.7

%

  FDIC assessments

734



1,051



(30.2)

%


2,951



3,001



(1.7)

%

  Loss (gain) - other real estate owned

538



237



127.0

%


332



423



(21.5)

%

  Other

10,821



5,554



94.8

%


26,056



15,720



65.8

%

      Total noninterest expenses

85,415



54,443



56.9

%


240,458



157,044



53.1

%

Income before income taxes

63,516



36,025



76.3

%


147,420



104,860



40.6

%

Income tax expense

12,859



11,199



14.8

%


29,839



32,884



(9.3)

%

      Net income

$

50,657



$

24,826



104.0

%


$

117,581



$

71,976



63.4

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.52



$

0.40





$

1.37



$

1.17




Net earnings per share - diluted

$

0.51



$

0.40





$

1.36



$

1.16




Dividends declared per share

$

0.20



$

0.17





$

0.58



$

0.51
















Return on average assets

1.45

%


1.13

%




1.29

%


1.12

%



Return on average shareholders' equity

9.94

%


10.85

%




9.50

%


10.82

%















Interest income

$

149,220



$

84,918



75.7

%


$

386,953



$

244,535



58.2

%

Tax equivalent adjustment

1,567



1,353



15.8

%


3,705



3,872



(4.3)

%

   Interest income - tax equivalent

150,787



86,271



74.8

%


390,658



248,407



57.3

%

Interest expense

25,735



14,439



78.2

%


63,677



36,604



74.0

%

   Net interest income - tax equivalent

$

125,052



$

71,832



74.1

%


$

326,981



$

211,803



54.4

%













Net interest margin

4.06

%


3.50

%




4.01

%


3.54

%



Net interest margin (fully tax equivalent) (1)

4.12

%


3.57

%




4.06

%


3.61

%















Full-time equivalent employees

2,028



1,363






















(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


Third


Second


First


Full


% Change


Quarter


Quarter


Quarter


Year


Linked Qtr.

Interest income










  Loans and leases, including fees

$

123,397



$

122,290



$

74,920



$

320,607



0.9

%

  Investment securities










     Taxable

21,801



20,844



13,670



56,315



4.6

%

     Tax-exempt

3,807



4,068



1,657



9,532



(6.4)

%

        Total investment securities interest

25,608



24,912



15,327



65,847



2.8

%

  Other earning assets

215



177



107



499



21.5

%

       Total interest income

149,220



147,379



90,354



386,953



1.2

%











Interest expense










  Deposits

14,672



14,794



10,298



39,764



(0.8)

%

  Short-term borrowings

6,052



4,132



2,663



12,847



46.5

%

  Long-term borrowings

5,011



4,474



1,581



11,066



12.0

%

      Total interest expense

25,735



23,400



14,542



63,677



10.0

%

      Net interest income

123,485



123,979



75,812



323,276



(0.4)

%

  Provision for loan and lease losses

3,238



3,735



2,303



9,276



(13.3)

%

      Net interest income after provision for loan and lease losses

120,247



120,244



73,509



314,000



0.0

%











Noninterest income










  Service charges on deposit accounts

10,316



9,568



5,039



24,923



7.8

%

  Trust and wealth management fees

3,728



3,697



3,954



11,379



0.8

%

  Bankcard income

5,261



5,343



3,394



13,998



(1.5)

%

  Client derivative fees

3,029



1,463



1,757



6,249



107.0

%

  Net gains from sales of loans

1,739



2,316



588



4,643



(24.9)

%

  Net gains (losses) on sale of investment securities

(167)



(30)



0



(197)



456.7

%

  Other

4,778



5,899



2,206



12,883



(19.0)

%

      Total noninterest income

28,684



28,256



16,938



73,878



1.5

%











Noninterest expenses










  Salaries and employee benefits

50,852



55,531



31,102



137,485



(8.4)

%

  Net occupancy

6,765



6,631



4,497



17,893



2.0

%

  Furniture and equipment

4,072



5,298



2,040



11,410



(23.1)

%

  Data processing

4,502



14,304



3,672



22,478



(68.5)

%

  Marketing

2,502



2,644



801



5,947



(5.4)

%

  Communication

785



1,118



459



2,362



(29.8)

%

  Professional services

2,621



5,659



2,198



10,478



(53.7)

%

  State intangible tax

1,223



1,078



765



3,066



13.5

%

  FDIC assessments

734



1,323



894



2,951



(44.5)

%

  Loss (gain) - other real estate owned

538



(283)



77



332



(290.1)

%

  Other

10,821



9,452



5,783



26,056



14.5

%

      Total noninterest expenses

85,415



102,755



52,288



240,458



(16.9)

%

Income before income taxes

63,516



45,745



38,159



147,420



38.8

%

Income tax expense

12,859



9,327



7,653



29,839



37.9

%

      Net income

$

50,657



$

36,418



$

30,506



$

117,581



39.1

%











ADDITIONAL DATA










Net earnings per share - basic

$

0.52



$

0.37



$

0.49



$

1.37




Net earnings per share - diluted

$

0.51



$

0.37



$

0.49



$

1.36




Dividends declared per share

$

0.20



$

0.19



$

0.19



$

0.58














Return on average assets

1.45

%


1.05

%


1.40

%


1.29

%



Return on average shareholders' equity

9.94

%


7.36

%


13.31

%


9.50

%













Interest income

$

149,220



$

147,379



$

90,354



$

386,953



1.2

%

Tax equivalent adjustment

1,567



1,420



718



3,705



10.4

%

   Interest income - tax equivalent

150,787



148,799



91,072



390,658



1.3

%

Interest expense

25,735



23,400



14,542



63,677



10.0

%

   Net interest income - tax equivalent

$

125,052



$

125,399



$

76,530



$

326,981



(0.3)

%











Net interest margin

4.06

%


4.10

%


3.80

%


4.01

%



Net interest margin (fully tax equivalent) (1)

4.12

%


4.15

%


3.84

%


4.06

%













Full-time equivalent employees

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)
















Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


Sep. 30,


% Change


% Change


2018


2018


2018


2017


2017


Linked Qtr.


Comparable Qtr.

ASSETS














     Cash and due from banks

$

193,288



$

216,667



$

116,581



$

150,650



$

117,840



(10.8)

%


64.0

%

     Interest-bearing deposits with other banks

28,989



37,915



10,200



33,974



34,787



(23.5)

%


(16.7)

%

     Investment securities available-for-sale

2,626,726



2,654,909



1,359,381



1,349,408



1,286,770



(1.1)

%


104.1

%

     Investment securities held-to-maturity

434,369



443,957



633,722



654,008



669,816



(2.2)

%


(35.2)

%

     Other investments

115,757



95,004



53,070



53,140



53,198



21.8

%


117.6

%

     Loans held for sale

13,277



15,821



8,048



11,502



16,466



(16.1)

%


(19.4)

%

     Loans and leases














       Commercial and industrial

2,426,590



2,440,596



1,943,741



1,912,743



1,886,093



(0.6)

%


28.7

%

       Lease financing

95,317



96,198



81,617



89,347



86,014



(0.9)

%


10.8

%

       Construction real estate

565,077



555,468



494,665



467,730



420,941



1.7

%


34.2

%

       Commercial real estate

3,868,143



3,888,993



2,544,051



2,490,091



2,523,387



(0.5)

%


53.3

%

       Residential real estate

932,962



918,904



468,584



471,391



477,964



1.5

%


95.2

%

       Home equity

816,133



835,031



483,643



493,604



494,342



(2.3)

%


65.1

%

       Installment

97,413



100,726



39,248



41,586



43,650



(3.3)

%


123.2

%

       Credit card

45,741



48,665



46,472



46,691



44,646



(6.0)

%


2.5

%

          Total loans

8,847,376



8,884,581



6,102,021



6,013,183



5,977,037



(0.4)

%


48.0

%

       Less:














          Allowance for loan and lease losses

57,715



54,076



54,380



54,021



54,534



6.7

%


5.8

%

                Net loans

8,789,661



8,830,505



6,047,641



5,959,162



5,922,503



(0.5)

%


48.4

%

     Premises and equipment

219,940



223,950



127,046



125,036



126,790



(1.8)

%


73.5

%

     Goodwill and other intangibles

934,360



934,656



209,053



209,379



209,730



0.0

%


345.5

%

     Accrued interest and other assets

486,300



466,783



333,687



350,664



323,789



4.2

%


50.2

%

       Total Assets

$

13,842,667



$

13,920,167



$

8,898,429



$

8,896,923



$

8,761,689



(0.6)

%


58.0

%















LIABILITIES














     Deposits














       Interest-bearing demand

$

2,284,271



$

2,440,088



$

1,442,399



$

1,453,463



$

1,518,011



(6.4)

%


50.5

%

       Savings

3,134,944



3,087,683



2,450,196



2,462,420



2,434,086



1.5

%


28.8

%

       Time

1,957,574



2,104,044



1,545,273



1,317,105



1,188,597



(7.0)

%


64.7

%

          Total interest-bearing deposits

7,376,789



7,631,815



5,437,868



5,232,988



5,140,694



(3.3)

%


43.5

%

       Noninterest-bearing

2,375,845



2,471,932



1,572,636



1,662,058



1,585,396



(3.9)

%


49.9

%

          Total deposits

9,752,634



10,103,747



7,010,504



6,895,046



6,726,090



(3.5)

%


45.0

%

     Federal funds purchased and securities sold














         under agreements to repurchase

123,452



88,070



56,732



72,265



45,532



40.2

%


171.1

%

     FHLB short-term borrowings

1,170,800



1,100,233



601,600



742,300



818,200



6.4

%


43.1

%

          Total short-term borrowings

1,294,252



1,188,303



658,332



814,565



863,732



8.9

%


49.8

%

     Long-term debt

570,037



469,423



169,695



119,654



119,615



21.4

%


376.6

%

          Total borrowed funds

1,864,289



1,657,726



828,027



934,219



983,347



12.5

%


89.6

%

     Accrued interest and other liabilities

190,224



145,757



119,913