Press Release

First Financial Bancorp Announces Fourth Quarter and Full Year 2019 Financial Results

- Fourth Quarter 2019 Earnings per Diluted Share of $0.49; $0.52 on an Adjusted Basis

- 32.6% Decline in Classified Assets

- 6.0% Loan Growth on an Annualized Basis

- 8.1% Average Deposit Growth on an Annualized Basis

- 3.89% Fully Tax Equivalent Net Interest Margin

Company Release - 1/23/2020 4:15 PM ET

CINCINNATI, Jan. 23, 2020 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the fourth quarter 2019.

For the three months ended December 31, 2019, the Company reported net income of $48.7 million, or $0.49 per diluted common share.  These results compare to net income of $50.9 million, or $0.51 per diluted common share, for the third quarter of 2019 and $55.0 million, or $0.56 per diluted common share, for the fourth quarter of 2018.  For the twelve months ended December 31, 2019, First Financial had earnings per diluted common share of $2.00 compared to $1.93 for the same period in 2018.

Return on average assets for the fourth quarter of 2019 was 1.34% while return on average tangible common equity was 15.84%.  These compare to returns on average assets of 1.41% and 1.59%, and returns on average tangible common equity of 16.15% and 19.63%, in the third quarter of 2019 and the fourth quarter of 2018, respectively.

Fourth quarter 2019 highlights include:

  • After adjustments(1) for merger-related and nonrecurring items:
    • Net income of $0.52 per diluted common share
    • 1.41% return on average assets; 16.73% return on average tangible common equity 
  • Adjustments to net income include:
    • $0.7 million of severance and other merger related costs
    • $2.9 million historic tax credit investment write-down; offset by impact to income taxes
    • $1.7 million of other nonrecurring costs such as branch consolidation costs
    • $0.7 million of taxes on merger-related executive compensation
  • Loan balances grew 6.0% on an annualized basis
    • $138.0 million increase compared to the linked quarter driven by commercial real estate
  • Average deposit balances grew 8.1% on an annualized basis
    • Noninterest bearing demand deposits grew 19.8% on an annualized basis
  • Net interest margin of 3.89% on a fully tax-equivalent basis(1)
    • 7 basis point reduction from the linked quarter
    • Impact of lower interest rates on asset yields partially offset by funding cost reductions and favorable shift in funding mix
  • Noninterest income of $36.8 million
    • Positively impacted by full quarter impact of Bannockburn acquisition, strong mortgage banking activity and client derivative fees

 


(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.

 

  • Noninterest expenses of $93.1 million, or $87.8 million as adjusted(1)
    • Efficiency ratio of 59.8%; 56.4% as adjusted(1)
    • Includes $1.7 million of additional incentive compensation due to strong operating results
    • $0.4 million contribution to First Financial Foundation
    • $0.8 million of additional collection expenses in fourth quarter
  • Significant decline in nonperforming and classified asset levels; ALLL relatively flat at $57.7 million, or 0.63% of loans; Provision expense sufficient to cover net charge-offs and loan growth
  • Strong capital ratios
    • Total capital of 13.39%; Tier 1 common equity of 11.30%; Tangible common equity of 9.07%
    • Tangible book value per share of $12.42

Archie Brown, President and Chief Executive Officer, commented, "We are very pleased to announce fourth quarter results that are highlighted by strong earnings, record loan originations, improved loan growth and a significant reduction in classified assets."

Mr. Brown continued, "A 31% increase in loan originations from the linked quarter resulted in 6.0% annualized loan growth.  This was our strongest quarter to date in loan volume with originations increasing across most of our portfolios, led by Commercial Real Estate and Commercial loans.  Net interest margin was once again at the high end of our expectations as our proactive funding cost management partially offset lower asset yields following the third rate cut in four months in October.  Credit quality trends significantly improved as net charge-offs normalized during the period and we resolved a number of problem loans, resulting in significantly lower classified asset balances."

Mr. Brown further remarked, "The full quarter impact of the Bannockburn acquisition along with near record level client derivative fees and sustained mortgage banking volume drove noninterest income higher.  Expenses were elevated during the period primarily due to the write-down of a historic tax credit investment and higher incentive compensation resulting from our strong operating results, however our adjusted efficiency ratio was in line with our stated expectations and reflects our deliberate expense management efforts."

Mr. Brown concluded, "2019 was another successful year for First Financial. The year was highlighted by record earnings, top quartile returns, shareholder-focused capital actions and the Bannockburn acquisition despite headwinds from the Fed rate cuts and increased credit costs related to one loan in our Franchise portfolio. Our success is a direct reflection of the work performed by our associates.  Their resolve and dedication to delivering unparalleled service to our clients and return to our shareholders embodies our organizational values and they have worked tirelessly to establish themselves and First Financial as valued partners in our communities.  Due to their continued efforts and commitment I remain confident in our ability to sustain this success into 2020 and beyond."

Full detail of the Company's fourth quarter and full year performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, January 24, 2020 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 10137978.  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 December 31, 2019, the Company had $14.5 billion in assets, $9.2 billion in loans, $10.2 billion in deposits and $2.2 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 December 31, 2019.  The Company operated 145 full service banking centers as of December 31, 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,


Twelve months ended,


Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


Dec. 31,


2019


2019


2019


2019


2018


2019


2018

RESULTS OF OPERATIONS














Net income

$

48,677



$

50,856



$

52,703



$

45,839



$

55,014



$

198,075



$

172,595


Net earnings per share - basic

$

0.49



$

0.52



$

0.54



$

0.47



$

0.56



$

2.01



$

1.95


Net earnings per share - diluted

$

0.49



$

0.51



$

0.53



$

0.47



$

0.56



$

2.00



$

1.93


Dividends declared per share

$

0.23



$

0.23



$

0.22



$

0.22



$

0.20



$

0.90



$

0.78
















KEY FINANCIAL RATIOS














Return on average assets

1.34

%


1.41

%


1.50

%


1.33

%


1.59

%


1.39

%


1.37

%

Return on average shareholders' equity

8.60

%


9.13

%


9.85

%


8.88

%


10.68

%


9.11

%


9.85

%

Return on average tangible shareholders' equity

15.84

%


16.15

%


17.33

%


15.95

%


19.63

%


16.32

%


17.32

%















Net interest margin

3.84

%


3.91

%


3.99

%


4.05

%


4.16

%


3.95

%


4.05

%

Net interest margin (fully tax equivalent) (1)

3.89

%


3.96

%


4.04

%


4.10

%


4.21

%


4.00

%


4.10

%















Ending shareholders' equity as a percent of ending assets

15.49

%


15.62

%


15.16

%


15.14

%


14.86

%


15.49

%


14.86

%

Ending tangible shareholders' equity as a percent of:














Ending tangible assets

9.07

%


9.17

%


9.34

%


9.15

%


8.79

%


9.07

%


8.79

%

Risk-weighted assets

11.09

%


11.34

%


11.82

%


11.61

%


11.20

%


11.09

%


11.20

%















Average shareholders' equity as a percent of average assets

15.53

%


15.43

%


15.22

%


15.01

%


14.84

%


15.30

%


13.89

%

Average tangible shareholders' equity as a percent of














    average tangible assets

9.07

%


9.35

%


9.26

%


8.95

%


8.66

%


9.16

%


8.40

%















Book value per share

$

22.82



$

22.59



$

22.18



$

21.60



$

21.23



$

22.82



$

21.23


Tangible book value per share

$

12.42



$

12.33



$

12.79



$

12.19



$

11.72



$

12.42



$

11.72
















Common equity tier 1 ratio (2)

11.30

%


11.52

%


12.00

%


12.03

%


11.87

%


11.30

%


11.87

%

Tier 1 ratio (2)

11.69

%


11.91

%


12.40

%


12.43

%


12.28

%


11.69

%


12.28

%

Total capital ratio (2)

13.39

%


13.62

%


14.20

%


14.24

%


14.10

%


13.39

%


14.10

%

Leverage ratio (2)

9.58

%


9.75

%


10.02

%


9.84

%


9.71

%


9.58

%


9.71

%















AVERAGE BALANCE SHEET ITEMS














Loans (3)

$

9,149,222



$

9,014,092



$

8,852,662



$

8,773,310



$

8,766,302



$

8,948,535



$

8,151,068


Investment securities

3,102,867



3,290,666



3,408,994



3,355,732



3,204,758



3,288,875



2,897,167


Interest-bearing deposits with other banks

36,672



38,569



33,255



34,709



32,013



35,814



32,090


  Total earning assets

$

12,288,761



$

12,343,327



$

12,294,911



$

12,163,751



$

12,003,073



$

12,273,224



$

11,080,325


Total assets

$

14,460,288



$

14,320,514



$

14,102,733



$

13,952,551



$

13,768,958



$

14,210,719



$

12,611,438


Noninterest-bearing deposits

$

2,638,908



$

2,513,458



$

2,484,214



$

2,457,587



$

2,476,773



$

2,524,011



$

2,217,349


Interest-bearing deposits

7,583,531



7,504,708



7,612,146



7,610,092



7,573,069



7,577,347



7,098,836


  Total deposits

$

10,222,439



$

10,018,166



$

10,096,360



$

10,067,679



$

10,049,842



$

10,101,358



$

9,316,185


Borrowings

$

1,613,696



$

1,816,983



$

1,656,570



$

1,587,068



$

1,509,642



$

1,669,059



$

1,385,994


Shareholders' equity

$

2,245,107



$

2,210,327



$

2,146,997



$

2,094,234



$

2,042,884



$

2,174,679



$

1,752,261
















CREDIT QUALITY RATIOS













Allowance to ending loans

0.63

%


0.62

%


0.69

%


0.64

%


0.64

%


0.63

%


0.64

%

Allowance to nonaccrual loans

119.69

%


93.18

%


119.86

%


95.40

%


79.97

%


119.69

%


79.97

%

Allowance to nonperforming loans

96.73

%


71.46

%


69.33

%


68.94

%


65.13

%


96.73

%


65.13

%

Nonperforming loans to total loans

0.65

%


0.87

%


0.99

%


0.93

%


0.98

%


0.65

%


0.98

%

Nonperforming assets to ending loans, plus OREO

0.67

%


0.89

%


1.00

%


0.95

%


1.00

%


0.67

%


1.00

%

Nonperforming assets to total assets

0.42

%


0.56

%


0.62

%


0.60

%


0.63

%


0.42

%


0.63

%

Classified assets to total assets

0.62

%


0.92

%


1.02

%


1.01

%


0.94

%


0.62

%


0.94

%

Net charge-offs to average loans (annualized)

0.15

%


0.45

%


0.08

%


0.64

%


0.29

%


0.33

%


0.15

%






















(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) December 31, 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,


Twelve months ended,


Dec. 31,


Dec. 31,


2019


2018


% Change


2019


2018


% Change

Interest income












  Loans and leases, including fees

$

122,802



$

126,580



(3.0)

%


$

499,009



$

447,187



11.6

%

  Investment securities












     Taxable

20,137



22,761



(11.5)

%


90,168



79,076



14.0

%

     Tax-exempt

4,545



3,896



16.7

%


17,596



13,428



31.0

%

        Total investment securities interest

24,682



26,657



(7.4)

%


107,764



92,504



16.5

%

  Other earning assets

167



192



(13.0)

%


805



691



16.5

%

       Total interest income

147,651



153,429



(3.8)

%


607,578



540,382



12.4

%













Interest expense












  Deposits

19,026



17,198



10.6

%


79,032



56,962



38.7

%

  Short-term borrowings

5,430



5,186



4.7

%


25,235



18,033



39.9

%

  Long-term borrowings

4,293



5,086



(15.6)

%


19,057



16,152



18.0

%

      Total interest expense

28,749



27,470



4.7

%


123,324



91,147



35.3

%

      Net interest income

118,902



125,959



(5.6)

%


484,254



449,235



7.8

%

  Provision for loan and lease losses

4,629



5,310



(12.8)

%


30,598



14,586



109.8

%

      Net interest income after provision for loan and lease losses

114,273



120,649



(5.3)

%


453,656



434,649



4.4

%













Noninterest income












  Service charges on deposit accounts

9,343



10,185



(8.3)

%


37,939



35,108



8.1

%

  Trust and wealth management fees

3,913



3,703



5.7

%


15,644



15,082



3.7

%

  Bankcard income

3,405



6,247



(45.5)

%


18,804



20,245



(7.1)

%

  Client derivative fees

4,194



1,433



192.7

%


15,662



7,682



103.9

%

  Foreign exchange income

6,014



0



100.0

%


7,739



0



100.0

%

  Net gains from sales of loans

4,723



1,428



230.7

%


14,851



6,071



144.6

%

  Net gains (losses) on sale of investment securities

(296)



36



(922.2)

%


(406)



(161)



(152.2)

%

  Other

5,472



6,472



(15.5)

%


21,140



19,355



9.2

%

      Total noninterest income

36,768



29,504



24.6

%


131,373



103,382



27.1

%













Noninterest expenses












  Salaries and employee benefits

53,952



51,505



4.8

%


209,061



188,990



10.6

%

  Net occupancy

6,334



6,322



0.2

%


24,069



24,215



(0.6)

%

  Furniture and equipment

4,145



3,498



18.5

%


15,903



14,908



6.7

%

  Data processing

5,996



5,599



7.1

%


21,881



28,077



(22.1)

%

  Marketing

1,980



1,651



19.9

%


6,908



7,598



(9.1)

%

  Communication

882



805



9.6

%


3,267



3,167



3.2

%

  Professional services

2,192



1,794



22.2

%


11,254



12,272



(8.3)

%

  State intangible tax

1,767



1,086



62.7

%


5,829



4,152



40.4

%

  FDIC assessments

1,055



1,018



3.6

%


1,973



3,969



(50.3)

%

  Intangible amortization

3,150



2,229



41.3

%


9,671



7,359



31.4

%

  Other

11,611



7,845



48.0

%


32,351



29,103



11.2

%

      Total noninterest expenses

93,064



83,352



11.7

%


342,167



323,810



5.7

%

Income before income taxes

57,977



66,801



(13.2)

%


242,862



214,221



13.4

%

Income tax expense

9,300



11,787



(21.1)

%


44,787



41,626



7.6

%

      Net income

$

48,677



$

55,014



(11.5)

%


$

198,075



$

172,595



14.8

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.49



$

0.56





$

2.01



$

1.95




Net earnings per share - diluted

$

0.49



$

0.56





$

2.00



$

1.93




Dividends declared per share

$

0.23



$

0.20





$

0.90



$

0.78
















Return on average assets

1.34

%


1.59

%




1.39

%


1.37

%



Return on average shareholders' equity

8.60

%


10.68

%




9.11

%


9.85

%















Interest income

$

147,651



$

153,429



(3.8)

%


$

607,578



$

540,382



12.4

%

Tax equivalent adjustment

1,630



1,442



13.0

%


6,328



5,147



22.9

%

   Interest income - tax equivalent

149,281



154,871



(3.6)

%


613,906



545,529



12.5

%

Interest expense

28,749



27,470



4.7

%


123,324



91,147



35.3

%

   Net interest income - tax equivalent

$

120,532



$

127,401



(5.4)

%


$

490,582



$

454,382



8.0

%













Net interest margin

3.84

%


4.16

%




3.95

%


4.05

%



Net interest margin (fully tax equivalent) (1)

3.89

%


4.21

%




4.00

%


4.10

%















Full-time equivalent employees

2,065



2,073






















(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


Fourth


Third


Second


First


Full


% Change


Quarter


Quarter


Quarter


Quarter


Year


Linked Qtr.

Interest income












  Loans and leases, including fees

$

122,802



$

126,786



$

126,365



$

123,056



$

499,009



(3.1)

%

  Investment securities












     Taxable

20,137



22,180



23,616



24,235



90,168



(9.2)

%

     Tax-exempt

4,545



4,457



4,336



4,258



17,596



2.0

%

        Total investment securities interest

24,682



26,637



27,952



28,493



107,764



(7.3)

%

  Other earning assets

167



222



206



210



805



(24.8)

%

       Total interest income

147,651



153,645



154,523



151,759



607,578



(3.9)

%













Interest expense












  Deposits

19,026



20,151



20,612



19,243



79,032



(5.6)

%

  Short-term borrowings

5,430



7,199



6,646



5,960



25,235



(24.6)

%

  Long-term borrowings

4,293



4,760



4,963



5,041



19,057



(9.8)

%

      Total interest expense

28,749



32,110



32,221



30,244



123,324



(10.5)

%

      Net interest income

118,902



121,535



122,302



121,515



484,254



(2.2)

%

  Provision for loan and lease losses

4,629



5,228



6,658



14,083



30,598



(11.5)

%

      Net interest income after provision for loan and lease losses

114,273



116,307



115,644



107,432



453,656



(1.7)

%













Noninterest income












  Service charges on deposit accounts

9,343



9,874



9,819



8,903



37,939



(5.4)

%

  Trust and wealth management fees

3,913



3,718



3,943



4,070



15,644



5.2

%

  Bankcard income

3,405



3,316



6,497



5,586



18,804



2.7

%

  Client derivative fees

4,194



4,859



4,905



1,704



15,662



(13.7)

%

  Foreign exchange income

6,014



1,708



17



0



7,739



252.1

%

  Net gains from sales of loans

4,723



4,806



3,432



1,890



14,851



(1.7)

%

  Net gains (losses) on sale of investment securities

(296)



105



(37)



(178)



(406)



381.9

%

  Other

5,472



4,754



6,062



4,852



21,140



15.1

%

      Total noninterest income

36,768



33,140



34,638



26,827



131,373



10.9

%













Noninterest expenses












  Salaries and employee benefits

53,952



53,212



53,985



47,912



209,061



1.4

%

  Net occupancy

6,334



5,509



5,596



6,630



24,069



15.0

%

  Furniture and equipment

4,145



4,120



4,222



3,416



15,903



0.6

%

  Data processing

5,996



5,774



4,984



5,127



21,881



3.8

%

  Marketing

1,980



1,346



1,976



1,606



6,908



47.1

%

  Communication

882



910



747



728



3,267



(3.1)

%

  Professional services

2,192



4,771



2,039



2,252



11,254



(54.1)

%

  State intangible tax

1,767



1,445



1,307



1,310



5,829



22.3

%

  FDIC assessments

1,055



(1,097)



1,065



950



1,973



(196.2)

%

  Intangible amortization

3,150



2,432



2,044



2,045



9,671



29.5

%

  Other

11,611



7,804



6,413



6,523



32,351



48.8

%

      Total noninterest expenses

93,064



86,226



84,378



78,499



342,167



7.9

%

Income before income taxes

57,977



63,221



65,904



55,760



242,862



(8.3)

%

Income tax expense

9,300



12,365



13,201



9,921



44,787



(24.8)

%

      Net income

$

48,677



$

50,856



$

52,703



$

45,839



$

198,075



(4.3)

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.49



$

0.52



$

0.54



$

0.47



$

2.01




Net earnings per share - diluted

$

0.49



$

0.51



$

0.53



$

0.47



$

2.00




Dividends declared per share

$

0.23



$

0.23



$

0.22



$

0.22



$

0.90
















Return on average assets

1.34

%


1.41

%


1.50

%


1.33

%


1.39

%



Return on average shareholders' equity

8.60

%


9.13

%


9.85

%


8.88

%


9.11

%















Interest income

$

147,651



$

153,645



$

154.523



$

151,759



$

607,578



(3.9)

%

Tax equivalent adjustment

1,630



1,759



1.416



1,523



6,328



(7.3)

%

   Interest income - tax equivalent

149,281



155,404



155.939



153,282



613,906



(3.9)

%

Interest expense

28,749



32,110



32.221



30,244



123,324



(10.5)

%

   Net interest income - tax equivalent

$

120,532



$

123,294



$

123.718



$

123,038



$

490,582



(2.2)

%













Net interest margin

3.84

%


3.91

%


3.99

%


4.05

%


3.95

%



Net interest margin (fully tax equivalent) (1)

3.89

%


3.96

%


4.04

%


4.10

%


4.00

%















Full-time equivalent employees

2,065



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)
















Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


% Change


% Change


2019


2019


2019


2019


2018


Linked Qtr.


Comp Qtr.

ASSETS














     Cash and due from banks

$

200,691



$

242,482



$

169,694



$

169,004



$

236,221



(17.2)

%


(15.0)

%

     Interest-bearing deposits with other banks

56,948



39,669



101,668



50,224



37,738



43.6

%


50.9

%

     Investment securities available-for-sale

2,852,084



2,850,502



3,152,970



3,113,811



2,779,255



0.1

%


2.6

%

     Investment securities held-to-maturity

142,862



148,778



154,327



158,305



429,328



(4.0)

%


(66.7)

%

     Other investments

125,020



124,965



127,439



115,731



115,660



0.0

%


8.1

%

     Loans held for sale

13,680



23,528



20,244



8,217



4,372



(41.9)

%


212.9

%

     Loans and leases














       Commercial and industrial

2,465,877



2,470,017



2,547,997



2,543,427



2,514,661



(0.2)

%


(1.9)

%