Investor Relations

Press Release

First Financial Bancorp Announces Third Quarter 2020 Financial Results

Company Release - 10/22/2020

CINCINNATI, Oct. 22, 2020 /PRNewswire/ -- 

  • Earnings per diluted share of $0.42; $0.44 on an adjusted(1) basis
  • Return on average assets of 1.04%; 1.09% as adjusted(1) 
  • Record core fee income driven by $18.6 million of mortgage banking and $10.5 million of foreign exchange income
  • Provision for credit losses of $13.4 million; 34% reduction from second quarter

First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2020. 

For the three months ended September 30, 2020, the Company reported net income of $41.5 million, or $0.42 per diluted common share.  These results compare to net income of $37.4 million, or $0.38 per diluted common share, for the second quarter of 2020 and $50.9 million, or $0.51 per diluted common share, for the third quarter of 2019.  For the nine months ended September 30,  2020, First Financial had earnings per diluted common share of $1.10 compared to $1.51 for the same period in 2019.

Return on average assets for the third quarter of 2020 was 1.04% while return on average tangible common equity was 13.61%.  These compare to returns on average assets of 0.96% and 1.41%, and returns on average tangible common equity of 12.90% and 16.15%, in the second quarter of 2020 and the third quarter of 2019, respectively.

Third quarter 2020 highlights include:

  • After adjustments(1) for certain nonrecurring and certain COVID-19 related items:
    • Net income of $0.44 per diluted common share
    • 1.09% return on average assets
    • 14.18% return on average tangible common equity
  • Adjustments(1) to net income include:
    • $0.1 million of costs directly related to COVID-19
    • $2.1 million of other nonrecurring costs such as merger related and branch consolidation costs
  • Strong noninterest income of $49.5 million, an increase of 15.9% from the linked quarter
    • Mortgage banking revenue increased $1.9 million, or 11.6%
    • Record foreign exchange income of $10.5 million; 60.1% increase from linked quarter
    • Service charges on deposits, including overdrafts, increased $1.4 million, or 22.6%
  • Noninterest expenses of $97.5 million, or $95.3 million as adjusted(1)
    • Includes $7.0 million of incremental incentive compensation expenses directly related to strong operating results and fee income generation
    • Includes $0.5 million contribution to First Financial Foundation
    • Efficiency ratio of 60.3%; 58.9% as adjusted(1)
  • Loan balances were relatively unchanged at $10.2 billion
  • Average transactional deposit balances grew $434.5 million compared to the linked quarter; 19.0% on an annualized basis

_________________________________________________________________________________________

(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.

  • Total Allowance for Credit Losses of $183.3 million; Total quarterly provision for credit losses of $13.4 million
    • Loans and leases - ACL of $168.5 million, 1.65% of total loans; 1.81% of loans excluding PPP
    • Unfunded Commitments - ACL of $14.8 million
    • Third quarter provision expense driven by expected economic impact from COVID-19, partially offset by higher prepayment rates
  • Net interest margin of 3.36% on a fully tax-equivalent basis(1)
    • 8 basis point decline compared to the linked quarter; 19 basis point decline due to loan yields partially offset by 14 basis point impact from reduced funding costs
    • 3 basis points of incremental dilution from PPP from the linked quarter
    • Impact of decline in short term rates, partially offset by funding cost reductions and higher loan fees
  • Strong capital ratios
    • Total capital of 15.37%
    • Tier 1 common equity of 11.63%
    • Tangible common equity of 8.25%; 8.79% excluding PPP loans 
    • Tangible book value per share of $12.56; $0.30 increase compared to linked quarter

Archie Brown, President and Chief Executive Officer, remarked, "We are pleased with our strong third quarter operating results while maintaining focus on three important pandemic related priorities: maintaining the health and safety of our associates, assisting our clients and communities and strengthening our Company."

Mr. Brown continued, "Despite continued interest rate headwinds and difficult business conditions, we posted strong earnings as reflected in our adjusted earnings per share of $0.44, adjusted return on assets of 1.09%, and an adjusted efficiency ratio of 58.9%.  Additionally, we were encouraged that credit trends remained relatively stable for the quarter.  Given the backdrop of increasing Covid-19 cases in the Midwest and uncertainty about the timing of vaccines to bring the pandemic under control, we recorded $13.4 million of provision expense in anticipation of credit deterioration in future quarters, leading to an increase in our allowance for credit losses to 1.81% of total loans, excluding PPP."

Mr. Brown further commented, "Third quarter results were primarily driven by exceptional fee income, well exceeding second quarter results, which at the time was our highest core fee income on record.  The steadfast diligence of our mortgage team capitalized on the continued historic low interest rate environment to drive another sensational quarter in mortgage banking revenue, and Bannockburn recorded its highest income quarter ever.  We were also pleased to see service charges improve as local economies continued to gradually reopen and consumer spending increased.  Total expenses increased during the quarter as a direct result of our strong operating performance and fee income generation leading to higher incentive and commission expense."

Mr. Brown concluded, "We are encouraged by our improved operating performance and by the resiliency of our associates.  Six months into a global pandemic, we now have 98% of our banking centers fully open to service the needs of our clients, and associates in our corporate offices and operations centers have begun gradually returning, albeit at significantly reduced capacity levels.  We continue to provide a bridge for our clients to navigate the environment with approximately $630 million, or 6.2% of total loans, receiving a round two deferral and all capital ratios have improved to equal or surpass pre-pandemic levels.  Additionally, this year we have added $125 million to our Allowance for Credit Losses, which brings our total ACL to greater than three times the balance at December 31, 2019.  We remain committed to managing pandemic priorities and positioning the Company for even stronger performance when the health crisis subsides."

Full detail of the Company's third quarter 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 23, 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 1048538.  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:

  • economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
  • future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
  • 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; (iv) management's ability to effectively execute its business plans;
  • mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
  • the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
  • the effect of changes in accounting policies and practices;
  • changes in consumer spending, borrowing and saving and changes in unemployment;
  • changes in customers' performance and creditworthiness;
  • the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
  • current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
  • the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
  • our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
  • financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
  • the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
  • the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
  • a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
  • the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
  • our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2019, 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, 2020, the Company had $15.9 billion in assets, $10.2 billion in loans, $11.6 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 $2.8 billion in assets under management as of September 30, 2020.  The Company operated 143 full service banking centers as of September 30, 2020, 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,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


September 30,


2020


2020


2020


2019


2019


2020


2019

RESULTS OF OPERATIONS














Net income

$

41,477



$

37,393



$

28,628



$

48,677



$

50,856



$

107,498



$

149,398


Net earnings per share - basic

$

0.43



$

0.38



$

0.29



$

0.49



$

0.52



$

1.10



$

1.52


Net earnings per share - diluted

$

0.42



$

0.38



$

0.29



$

0.49



$

0.51



$

1.10



$

1.51


Dividends declared per share

$

0.23



$

0.23



$

0.23



$

0.23



$

0.23



$

0.69



$

0.67
















KEY FINANCIAL RATIOS














Return on average assets

1.04

%


0.96

%


0.79

%


1.34

%


1.41

%


0.93

%


1.41

%

Return on average shareholders' equity

7.40

%


6.88

%


5.21

%


8.60

%


9.13

%


6.50

%


9.29

%

Return on average tangible shareholders' equity

13.61

%


12.90

%


9.71

%


15.84

%


16.15

%


12.08

%


16.48

%















Net interest margin

3.32

%


3.38

%


3.71

%


3.84

%


3.91

%


3.46

%


3.98

%

Net interest margin (fully tax equivalent) (1)

3.36

%


3.44

%


3.77

%


3.89

%


3.96

%


3.52

%


4.03

%















Ending shareholders' equity as a percent of ending assets

14.11

%


13.99

%


14.47

%


15.49

%


15.62

%


14.11

%


15.62

%

Ending tangible shareholders' equity as a percent of:














Ending tangible assets

8.25

%


8.09

%


8.25

%


9.07

%


9.17

%


8.25

%


9.17

%

Risk-weighted assets

11.07

%


10.89

%


10.50

%


11.09

%


11.34

%


11.07

%


11.34

%















Average shareholders' equity as a percent of average
assets

14.08

%


13.91

%


15.21

%


15.53

%


15.43

%


14.38

%


15.23

%

Average tangible shareholders' equity as a percent of














    average tangible assets

8.18

%


7.94

%


8.79

%


9.07

%


9.35

%


8.29

%


9.19

%















Book value per share

$

22.94



$

22.66



$

22.25



$

22.82



$

22.59



$

22.94



$

22.59


Tangible book value per share

$

12.56



$

12.26



$

11.82



$

12.42



$

12.33



$

12.56



$

12.33
















Common equity tier 1 ratio (2)

11.63

%


11.49

%


11.27

%


11.30

%


11.52

%


11.63

%


11.52

%

Tier 1 ratio (2)

12.02

%


11.87

%


11.66

%


11.69

%


11.91

%


12.02

%


11.91

%

Total capital ratio (2)

15.37

%


15.19

%


13.54

%


13.39

%


13.62

%


15.37

%


13.62

%

Leverage ratio (2)

9.55

%


8.98

%


9.49

%


9.58

%


9.75

%


9.55

%


9.75

%















AVERAGE BALANCE SHEET ITEMS














Loans (3)

$

10,253,392



$

10,002,379



$

9,220,643



$

9,149,222



$

9,014,092



$

9,827,033



$

8,880,904


Investment securities

3,162,832



3,164,243



3,115,723



3,102,867



3,290,666



3,147,655



3,351,559


Interest-bearing deposits with other banks

40,277



91,990



39,332



36,672



38,569



57,138



35,525


  Total earning assets

$

13,456,501



$

13,258,612



$

12,375,698



$

12,288,761



$

12,343,327



$

13,031,826



$

12,267,988


Total assets

$

15,842,010



$

15,710,204



$

14,524,422



$

14,460,288



$

14,320,514



$

15,360,642



$

14,126,615


Noninterest-bearing deposits

$

3,535,432



$

3,335,866



$

2,643,240



$

2,638,908



$

2,513,458



$

3,172,841



$

2,485,291


Interest-bearing deposits

8,027,082



8,395,229



7,590,791



7,583,531



7,504,708



8,004,450



7,575,263


  Total deposits

$

11,562,514



$

11,731,095



$

10,234,031



$

10,222,439



$

10,018,166



$

11,177,291



$

10,060,554


Borrowings

$

1,519,748



$

1,272,819



$

1,735,767



$

1,613,696



$

1,816,983



$

1,509,482



$

1,687,716


Shareholders' equity

$

2,230,422



$

2,185,865



$

2,209,733



$

2,245,107



$

2,210,327



$

2,208,753



$

2,150,945
















CREDIT QUALITY RATIOS













Allowance to ending loans

1.65

%


1.56

%


1.55

%


0.63

%


0.62

%


1.65

%


0.62

%

Allowance to nonaccrual loans

216.28

%


233.74

%


296.51

%


119.69

%


93.18

%


216.28

%


93.18

%

Allowance to nonperforming loans

196.69

%


208.06

%


203.42

%


96.73

%


71.46

%


196.69

%


71.46

%

Nonperforming loans to total loans

0.84

%


0.75

%


0.76

%


0.65

%


0.87

%


0.84

%


0.87

%

Nonperforming assets to ending loans, plus OREO

0.86

%


0.77

%


0.78

%


0.67

%


0.89

%


0.86

%


0.89

%

Nonperforming assets to total assets

0.55

%


0.49

%


0.48

%


0.42

%


0.56

%


0.55

%


0.56

%

Classified assets to total assets

0.84

%


0.79

%


0.83

%


0.62

%


0.92

%


0.84

%


0.92

%

Net charge-offs to average loans (annualized)

0.21

%


0.12

%


(0.04)

%


0.15

%


0.45

%


0.10

%


0.39

%

 


(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, 2020 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,


September 30,


September 30,


2020


2019


% Change


2020


2019


% Change

Interest income












  Loans and leases, including fees

$

103,249



$

126,786



(18.6)

%


$

324,924



$

376,207



(13.6)

%

  Investment securities












     Taxable

17,906



22,180



(19.3)

%


55,387



70,031



(20.9)

%

     Tax-exempt

4,884



4,457



9.6

%


14,403



13,051



10.4

%

        Total investment securities interest

22,790



26,637



(14.4)

%


69,790



83,082



(16.0)

%

  Other earning assets

31



222



(86.0)

%


220



638



(65.5)

%

       Total interest income

126,070



153,645



(17.9)

%


394,934



459,927



(14.1)

%













Interest expense












  Deposits

7,886



20,151



(60.9)

%


36,002



60,006



(40.0)

%

  Short-term borrowings

51



7,199



(99.3)

%


6,412



19,805



(67.6)

%

  Long-term borrowings

5,953



4,760



25.1

%


14,482



14,764



(1.9)

%

      Total interest expense

13,890



32,110



(56.7)

%


56,896



94,575



(39.8)

%

      Net interest income

112,180



121,535



(7.7)

%


338,038



365,352



(7.5)

%

  Provision for credit losses-loans and leases (1)

15,299



5,228



192.6

%


57,038



25,969



119.6

%

  Provision for credit losses-unfunded commitments (1)

(1,925)



(216)



N/M



2,013



(342)



N/M


      Net interest income after provision for credit losses

98,806



116,523



(15.2)

%


278,987



339,725



(17.9)

%













Noninterest income












  Service charges on deposit accounts

7,356



9,874



(25.5)

%


21,792



28,596



(23.8)

%

  Trust and wealth management fees

3,855



3,718



3.7

%


12,438



11,731



6.0

%

  Bankcard income

3,124



3,316



(5.8)

%


8,666



15,399



(43.7)

%

  Client derivative fees

2,203



4,859



(54.7)

%


8,292



11,468



(27.7)

%

  Foreign exchange income

10,530



1,708



N/M



27,072



1,725



N/M


  Net gains from sales of loans

18,594



4,806



286.9

%


38,087



10,128



276.1

%

  Net gains (losses) on sale of investment securities

2



105



(98.1)

%


(55)



(110)



50.0

%

  Other

3,835



4,754



(19.3)

%


11,316



15,668



(27.8)

%

      Total noninterest income

49,499



33,140



49.4

%


127,608



94,605



34.9

%













Noninterest expenses












  Salaries and employee benefits

63,769



53,212



19.8

%


174,516



155,109



12.5

%

  Net occupancy

5,625



5,509



2.1

%


17,107



17,735



(3.5)

%

  Furniture and equipment

3,638



4,120



(11.7)

%


11,372



11,758



(3.3)

%

  Data processing

6,837



5,774



18.4

%


20,245



15,885



27.4

%

  Marketing

1,856



1,346



37.9

%


4,415



4,928



(10.4)

%

  Communication

855



910



(6.0)

%


2,652



2,385



11.2

%

  Professional services

2,443



4,771



(48.8)

%


6,923



9,062



(23.6)

%

  State intangible tax

1,514



1,445



4.8

%


4,544



4,062



11.9

%

  FDIC assessments

1,350



(1,097)



223.1

%


4,045



918



340.6

%

  Intangible amortization

2,779



2,432



14.3

%


8,362



6,521



28.2

%

  Other

6,845



8,020



(14.7)

%


21,685



21,082



2.9

%

      Total noninterest expenses

97,511



86,442



12.8

%


275,866



249,445



10.6

%

Income before income taxes

50,794



63,221



(19.7)

%


130,729



184,885



(29.3)

%

Income tax expense

9,317



12,365



(24.7)

%


23,231



35,487



(34.5)

%

      Net income

$

41,477



$

50,856



(18.4)

%


$

107,498



$

149,398



(28.0)

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.43



$

0.52





$

1.10



$

1.52




Net earnings per share - diluted

$

0.42



$

0.51





$

1.10



$

1.51




Dividends declared per share

$

0.23



$

0.23





$

0.69



$

0.67
















Return on average assets

1.04

%


1.41

%




0.93

%


1.41

%



Return on average shareholders' equity

7.40

%


9.13

%




6.50

%


9.29

%















Interest income

$

126,070



$

153,645



(17.9)

%


$

394,934



$

459,927



(14.1)

%

Tax equivalent adjustment

1,628



1,759



(7.4)

%


4,916



4,698



4.6

%

   Interest income - tax equivalent

127,698



155,404



(17.8)

%


399,850



464,625



(13.9)

%

Interest expense

13,890



32,110



(56.7)

%


56,896



94,575



(39.8)

%

   Net interest income - tax equivalent

$

113,808



$

123,294



(7.7)

%


$

342,954



$

370,050



(7.3)

%













Net interest margin

3.32

%


3.91

%




3.46

%


3.98

%



Net interest margin (fully tax equivalent) (2)

3.36

%


3.96

%




3.52

%


4.03

%















Full-time equivalent employees

2,065



2,064






















(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.



(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest 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)












2020


Third


Second


First


Year to


% Change


Quarter


Quarter


Quarter


Date


Linked Qtr.

Interest income










  Loans and leases, including fees

$

103,249



$

105,900



$

115,775



$

324,924



(2.5)

%

  Investment securities










     Taxable

17,906



18,476



19,005



55,387



(3.1)

%

     Tax-exempt

4,884



4,937



4,582



14,403



(1.1)

%

        Total investment securities interest

22,790



23,413



23,587



69,790



(2.7)

%

  Other earning assets

31



47



142



220



(34.0)

%

       Total interest income

126,070



129,360



139,504



394,934



(2.5)

%











Interest expense










  Deposits

7,886



11,751



16,365



36,002



(32.9)

%

  Short-term borrowings

51



1,274



5,087



6,412



(96.0)

%

  Long-term borrowings

5,953



4,759



3,770



14,482



25.1

%

      Total interest expense

13,890



17,784



25,222



56,896



(21.9)

%

      Net interest income

112,180



111,576



114,282



338,038



0.5

%

  Provision for credit losses-loans and leases (1)

15,299



17,859



23,880



57,038



(14.3)

%

  Provision for credit losses-unfunded commitments (1)

(1,925)



2,370



1,568



2,013



(181.2)

%

      Net interest income after provision for credit losses

98,806



91,347



88,834



278,987



8.2

%











Noninterest income










  Service charges on deposit accounts

7,356



6,001



8,435



21,792



22.6

%

  Trust and wealth management fees

3,855



4,114



4,469



12,438



(6.3)

%

  Bankcard income

3,124



2,844



2,698



8,666



9.8

%

  Client derivative fees

2,203



2,984



3,105



8,292



(26.2)

%

  Foreign exchange income

10,530



6,576



9,966



27,072



60.1

%

  Net gains from sales of loans

18,594



16,662



2,831



38,087



11.6

%

  Net gains (losses) on sale of investment securities

2



2



(59)



(55)



0.0

%

  Other

3,835



3,542



3,939



11,316



8.3

%

      Total noninterest income

49,499



42,725



35,384



127,608



15.9

%











Noninterest expenses










  Salaries and employee benefits

63,769



55,925



54,822



174,516



14.0

%

  Net occupancy

5,625



5,378



6,104



17,107



4.6

%

  Furniture and equipment

3,638



3,681



4,053



11,372



(1.2)

%

  Data processing

6,837



7,019



6,389



20,245



(2.6)

%

  Marketing

1,856



1,339



1,220



4,415



38.6

%

  Communication

855



907



890



2,652



(5.7)

%

  Professional services

2,443



2,205



2,275



6,923



10.8

%

  State intangible tax

1,514



1,514



1,516



4,544



0.0

%

  FDIC assessments

1,350



1,290



1,405



4,045



4.7

%

  Intangible amortization

2,779



2,791



2,792



8,362



(0.4)

%

  Other

6,845



6,640



8,200



21,685



3.1

%

      Total noninterest expenses

97,511



88,689



89,666



275,866



9.9

%

Income before income taxes

50,794



45,383



34,552



130,729



11.9

%

Income tax expense

9,317



7,990



5,924



23,231



16.6

%

      Net income

$

41,477



$

37,393



$

28,628



$

107,498



10.9

%











ADDITIONAL DATA










Net earnings per share - basic

$

0.43



$

0.38



$

0.29



$

1.10




Net earnings per share - diluted

$

0.42



$

0.38



$

0.29



$

1.10




Dividends declared per share

$

0.23



$

0.23



$

0.23



$

0.69














Return on average assets

1.04

%


0.96

%


0.79

%


0.93

%



Return on average shareholders' equity

7.40

%


6.88

%


5.21

%


6.50

%













Interest income

$

126,070



$

129,360



$

139,504



$

394,934



(2.5)

%

Tax equivalent adjustment

1,628



1,664



1,624



4,916



(2.2)

%

   Interest income - tax equivalent

127,698



131,024



141,128



399,850



(2.5)

%

Interest expense

13,890



17,784



25,222



56,896



(21.9)

%

   Net interest income - tax equivalent

$

113,808



$

113,240



$

115,906



$

342,954



0.5

%











Net interest margin

3.32

%


3.38

%


3.71

%


3.46

%



Net interest margin (fully tax equivalent) (2)

3.36

%


3.44

%


3.77

%


3.52

%













Full-time equivalent employees

2,065



2,076



2,067
















(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.



(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest 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


Quarter


Quarter


Quarter


Quarter


Year

Interest income










  Loans and leases, including fees

$

122,802



$

126,786



$

126,365



$

123,056



$

499,009


  Investment securities










     Taxable

20,137



22,180



23,616



24,235



90,168


     Tax-exempt

4,545



4,457



4,336



4,258



17,596


        Total investment securities interest

24,682



26,637



27,952



28,493



107,764


  Other earning assets

167



222



206



210



805


       Total interest income

147,651



153,645



154,523



151,759



607,578












Interest expense










  Deposits

19,026



20,151



20,612



19,243



79,032


  Short-term borrowings

5,430



7,199



6,646



5,960



25,235


  Long-term borrowings

4,293



4,760



4,963



5,041



19,057


      Total interest expense

28,749



32,110



32,221



30,244



123,324


      Net interest income

118,902



121,535



122,302



121,515



484,254


  Provision for credit losses-loans and leases (1)

4,629



5,228



6,658



14,083



30,598


  Provision for credit losses-unfunded commitments (1)

177



(216)



(132)



6



(165)


      Net interest income after provision for credit losses

114,096



116,523



115,776



107,426



453,821












Noninterest income










  Service charges on deposit accounts

9,343



9,874



9,819



8,903



37,939


  Trust and wealth management fees

3,913



3,718



3,943



4,070



15,644


  Bankcard income

3,405



3,316



6,497



5,586



18,804


  Client derivative fees

4,194



4,859



4,905



1,704



15,662


  Foreign exchange income

6,014



1,708



17



0



7,739


  Net gains from sales of loans

4,723



4,806



3,432



1,890



14,851


  Net gains on sale of investment securities

(296)



105



(37)



(178)



(406)


  Other

5,472



4,754



6,062



4,852



21,140


      Total noninterest income

36,768



33,140



34,638



26,827



131,373












Noninterest expenses










  Salaries and employee benefits

53,952



53,212



53,985



47,912



209,061


  Net occupancy

6,334



5,509



5,596



6,630



24,069


  Furniture and equipment

4,145



4,120



4,222



3,416



15,903


  Data processing

5,996



5,774



4,984



5,127



21,881


  Marketing

1,980



1,346



1,976



1,606



6,908


  Communication

882



910



747



728



3,267


  Professional services

2,192



4,771



2,039



2,252



11,254


  State intangible tax

1,767



1,445



1,307



1,310



5,829


  FDIC assessments

1,055



(1,097)



1,065



950



1,973


  Intangible amortization

3,150



2,432



2,044



2,045



9,671


  Other

11,434



8,020



6,545



6,517



32,516


      Total noninterest expenses

92,887



86,442



84,510



78,493



342,332


Income before income taxes

57,977



63,221



65,904



55,760



242,862


Income tax expense (benefit)

9,300



12,365



13,201



9,921



44,787


      Net income

$

48,677



$

50,856



$

52,703



$

45,839



$

198,075












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


Tax equivalent adjustment

1,630



1,759



1,416



1,523



6,328


   Interest income - tax equivalent

149,281



155,404



155,939



153,282



613,906


Interest expense

28,749



32,110



32,221



30,244



123,324


   Net interest income - tax equivalent

$

120,532



$

123,294



$

123,718



$

123,038



$

490,582












Net interest margin

3.84

%


3.91

%


3.99

%


4.05

%


3.95

%

Net interest margin (fully tax equivalent) (2)

3.89

%


3.96

%


4.04

%


4.10

%


4.00

%











Full-time equivalent employees

2,065



2,064



2,076



2,087














(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.



(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest 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,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


% Change


% Change


2020


2020


2020


2019


2019


Linked Qtr.


Comp Qtr.

ASSETS














     Cash and due from banks

$

207,128



$

283,639



$

261,892



$

200,691



$

242,482



(27.0)

%


(14.6)

%

     Interest-bearing deposits with other banks

38,806



38,845



71,071



56,948



39,669



(0.1)

%


(2.2)

%

     Investment securities available-for-sale

3,004,963



2,897,413



2,908,688



2,852,084



2,850,502



3.7

%


5.4

%

     Investment securities held-to-maturity

118,072



127,347



136,744



142,862



148,778



(7.3)

%


(20.6)

%

     Other investments

118,292



132,366



143,581



125,020



124,965



(10.6)

%


(5.3)

%

     Loans held for sale

69,008



43,950



27,334



13,680



23,528



57.0

%


193.3

%

     Loans and leases














       Commercial and industrial

3,292,313



3,322,374



2,477,773



2,465,877



2,470,017



(0.9)

%


33.3

%

       Lease financing

74,742



80,087



82,602



88,364



92,616



(6.7)

%


(19.3)

%

       Construction real estate

575,648



506,085



500,311



493,182



515,960



13.7

%


11.6

%

       Commercial real estate

4,347,125



4,343,702



4,278,257



4,194,651



4,015,908



0.1

%


8.2

%

       Residential real estate

1,027,702



1,043,745



1,061,792



1,055,949



1,055,007



(1.5)

%


(2.6)

%

       Home equity

754,743



764,171



781,243



771,869



776,885



(1.2)

%


(2.9)

%

       Installment

84,629



79,150



80,085



82,589



88,275



6.9

%


(4.1)

%

       Credit card

43,907



42,397



45,756



49,184



49,010



3.6

%


(10.4)

%

          Total loans

10,200,809



10,181,711



9,307,819



9,201,665



9,063,678



0.2

%


12.5

%

       Less:














          Allowance for credit losses (1)

168,544



158,661



143,885



57,650



56,552



6.2

%


198.0

%

                Net loans

10,032,265



10,023,050



9,163,934



9,144,015



9,007,126



0.1

%


11.4

%

     Premises and equipment

209,474



211,164



212,787



214,506



213,681



(0.8)

%


(2.0)

%

     Goodwill

937,771



937,771



937,771



937,771



937,689



0.0

%


0.0

%

     Other intangibles

67,419



70,325



73,258



76,201



79,506



(4.1)

%


(15.2)

%

     Accrued interest and other assets

1,122,449



1,105,020



1,120,507



747,847



812,519



1.6

%


38.1

%

       Total Assets

$

15,925,647



$

15,870,890



$

15,057,567



$

14,511,625



$

14,480,445



0.3

%


10.0

%















LIABILITIES














     Deposits














       Interest-bearing demand

$

2,632,467



$

2,657,841



$

2,498,109



$

2,364,881



$

2,316,301



(1.0)

%


13.6

%

       Savings

3,446,678



3,287,314



2,978,250



2,960,979



2,924,200



4.8

%


17.9

%

       Time

1,935,392



2,241,212



2,435,858



2,240,441



2,308,617



(13.6)

%


(16.2)

%

          Total interest-bearing deposits

8,014,537



8,186,367



7,912,217



7,566,301



7,549,118



(2.1)

%


6.2

%

       Noninterest-bearing

3,552,893



3,515,048



2,723,341



2,643,928



2,534,739



1.1

%


40.2

%

          Total deposits

11,567,430



11,701,415



10,635,558



10,210,229



10,083,857



(1.1)

%


14.7

%

     Federal funds purchased and securities sold














         under agreements to repurchase

247,658



154,347



215,824



165,181



85,286



60.5

%


190.4

%

     FHLB short-term borrowings

0



0



1,181,900



1,151,000



1,128,900



N/M



(100.0)

%

          Total short-term borrowings

247,658



154,347



1,397,724



1,316,181



1,214,186



60.5

%


(79.6)

%

     Long-term debt

1,341,164



1,285,767



325,566



414,376



498,778



4.3

%


168.9

%

          Total borrowed funds

1,588,822



1,440,114



1,723,290



1,730,557



1,712,964



10.3

%


(7.2)

%

     Accrued interest and other liabilities

521,580



508,342



519,336



323,134



422,311



2.6

%


23.5

%

       Total Liabilities

13,677,832



13,649,871



12,878,184



12,263,920



12,219,132



0.2

%


11.9

%















SHAREHOLDERS' EQUITY














     Common stock

1,637,489



1,635,070



1,633,950



1,640,771



1,639,333



0.1

%


(0.1)

%

     Retained earnings

694,484



675,532



660,653



711,249



685,368



2.8

%


1.3

%

     Accumulated other comprehensive income (loss)

42,266



36,431



11,788



13,323



15,450



16.0

%


173.6

%

     Treasury stock, at cost

(126,424)



(126,014)



(127,008)



(117,638)



(78,838)



0.3

%


60.4

%

       Total Shareholders' Equity

2,247,815



2,221,019



2,179,383



2,247,705



2,261,313



1.2

%


(0.6)

%

       Total Liabilities and Shareholders' Equity

$

15,925,647



$

15,870,890



$

15,057,567



$

14,511,625



$

14,480,445



0.3

%


10.0

%















(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.

 

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)








Quarterly Averages


Year-to-Date Averages


Sep. 30,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


Sep. 30,


2020


2020


2020


2019


2019


2020


2019

ASSETS














     Cash and due from banks

$

233,216



$

284,726



$

235,696



$

221,060



$

191,000



$

251,147



$

182,025


     Interest-bearing deposits with other banks

40,277



91,990



39,332



36,672



38,569



57,138



35,525


     Investment securities

3,162,832



3,164,243



3,115,723



3,102,867



3,290,666



3,147,655



3,351,559


     Loans held for sale

45,186



36,592



13,174



21,050



18,197



31,700



12,659


     Loans and leases














       Commercial and industrial

3,299,259



3,058,677



2,450,893



2,469,810



2,509,782



2,937,601



2,517,681


       Lease financing

78,500



81,218



85,782



91,225



94,858



81,821



93,467


       Construction real estate

536,870



495,407



501,471



501,892



509,742



511,343



488,002


       Commercial real estate

4,364,708



4,381,647



4,209,345



4,102,288



3,925,028



4,318,735



3,841,178


       Residential real estate

1,041,250



1,052,996



1,055,456



1,053,707



1,035,975



1,049,869



996,100


       Home equity

759,994



772,424



773,082



773,119



781,340



768,469



792,635


       Installment

82,016



79,016



81,234



85,515



88,760



80,760



89,927


       Credit card

45,609



44,402



50,206



50,616



50,410



46,735



49,255


          Total loans

10,208,206



9,965,787



9,207,469



9,128,172



8,995,895



9,795,333



8,868,245


       Less:














          Allowance for credit losses (1)

165,270



155,454



121,126



56,649



61,911



147,349



59,129


                Net loans

10,042,936



9,810,333



9,086,343



9,071,523



8,933,984



9,647,984



8,809,116


     Premises and equipment

211,454



213,903



215,545



215,171



215,671



213,626



213,540


     Goodwill

937,771



937,771



937,771



937,710



899,888



937,771



886,130


     Other intangibles

69,169



72,086



75,014



78,190



51,365



72,079



43,019


     Accrued interest and other assets

1,099,169



1,098,560



805,824



776,045



681,174



1,001,542



593,042


       Total Assets

$

15,842,010



$

15,710,204



$

14,524,422



$

14,460,288



$

14,320,514



$

15,360,642



$

14,126,615
















LIABILITIES














     Deposits














       Interest-bearing demand

$

2,668,635



$

2,602,917



$

2,418,193



$

2,373,962



$

2,325,405



$

2,563,633



$

2,310,095


       Savings

3,342,514



3,173,274



2,976,518



2,995,395



2,945,076



3,164,753



3,038,620


       Time

2,015,933



2,619,038



2,196,080



2,214,174



2,234,227



2,276,064



2,226,548


          Total interest-bearing deposits

8,027,082



8,395,229



7,590,791



7,583,531



7,504,708



8,004,450



7,575,263


       Noninterest-bearing

3,535,432



3,335,866



2,643,240



2,638,908



2,513,458



3,172,841



2,485,291


          Total deposits

11,562,514



11,731,095



10,234,031



10,222,439



10,018,166



11,177,291



10,060,554


     Federal funds purchased and securities sold














          under agreements to repurchase

150,088



145,291



164,093



206,800



185,156



153,146



138,692


     FHLB short-term borrowings

30,868



548,183



1,189,765



952,625



1,112,091



587,566



1,003,745


          Total short-term borrowings

180,956



693,474



1,353,858



1,159,425



1,297,247



740,712



1,142,437


     Long-term debt

1,338,792



579,345



381,909



454,271



519,736



768,770



545,279


       Total borrowed funds

1,519,748



1,272,819



1,735,767



1,613,696



1,816,983



1,509,482



1,687,716


     Accrued interest and other liabilities

529,326



520,425



344,891



379,046



275,038



465,116



227,400


       Total Liabilities

13,611,588



13,524,339



12,314,689



12,215,181



12,110,187



13,151,889



11,975,670
















SHAREHOLDERS' EQUITY














     Common stock

1,636,107



1,634,405



1,638,851



1,640,066



1,629,286



1,636,453



1,625,851


     Retained earnings

679,980



658,312



660,108



691,236



662,899



666,184



636,613


     Accumulated other comprehensive loss

40,697



19,888



31,200



13,986



11,985



30,632



(13,377)


     Treasury stock, at cost

(126,362)



(126,740)



(120,426)



(100,181)



(93,843)



(124,516)



(98,142)


       Total Shareholders' Equity

2,230,422



2,185,865



2,209,733



2,245,107



2,210,327



2,208,753



2,150,945


       Total Liabilities and Shareholders' Equity

$

15,842,010



$

15,710,204



$

14,524,422



$

14,460,288



$

14,320,514



$

15,360,642



$

14,126,615
















(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.

 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)








 Quarterly Averages


Year-to-Date Averages



September 30, 2020


June 30, 2020


September 30, 2019


September 30, 2020


September 30, 2019



Balance


Yield


Balance


Yield


Balance


Yield


Balance


Yield


Balance


Yield

Earning assets





















    Investments:





















      Investment securities


$

3,162,832



2.86

%


$

3,164,243



2.97

%


$

3,290,666



3.21

%


$

3,147,655



2.96

%


$

3,351,559



3.31

%

      Interest-bearing deposits with other banks


40,277



0.31

%


91,990



0.20

%


38,569



2.28

%


57,138



0.51

%


35,525



2.40

%

    Gross loans (1)


10,253,392



4.00

%


10,002,379



4.25

%


9,014,092



5.58

%


9,827,033



4.42

%


8,880,904



5.66

%

       Total earning assets


13,456,501



3.72

%


13,258,612



3.91

%


12,343,327



4.94

%


13,031,826



4.05

%


12,267,988



5.01

%






















Nonearning assets





















    Allowance for credit losses


(165,270)





(155,454)





(61,911)





(147,349)





(59,129)




    Cash and due from banks


233,216





284,726





191,000





251,147





182,025




    Accrued interest and other assets


2,317,563





2,322,320





1,848,098





2,225,018





1,735,731




       Total assets


$

15,842,010





$

15,710,204





$

14,320,514





$

15,360,642





$

14,126,615

























Interest-bearing liabilities





















    Deposits:





















      Interest-bearing demand


$

2,668,635



0.08

%


$

2,602,917



0.11

%


$

2,325,405



0.56

%


$

2,563,633



0.21

%


$

2,310,095



0.55

%

      Savings


3,342,514



0.14

%


3,173,274



0.17

%


2,945,076



0.69

%


3,164,753



0.25

%


3,038,620



0.74

%

      Time


2,015,933



1.20

%


2,619,038



1.49

%


2,234,227



2.09

%


2,276,064



1.54

%


2,226,548



2.02

%

    Total interest-bearing deposits


8,027,082



0.39

%


8,395,229



0.56

%


7,504,708



1.07

%


8,004,450



0.60

%


7,575,263



1.06

%

    Borrowed funds





















      Short-term borrowings


180,956



0.11

%


693,474



0.74

%


1,297,247



2.20

%


740,712



1.16

%


1,142,437



2.32

%

      Long-term debt


1,338,792



1.76

%


579,345



3.29

%


519,736



3.63

%


768,770



2.52

%


545,279



3.62

%

        Total borrowed funds


1,519,748



1.57

%


1,272,819



1.90

%


1,816,983



2.61

%


1,509,482



1.85

%


1,687,716



2.74

%

       Total interest-bearing liabilities


9,546,830



0.58

%


9,668,048



0.74

%


9,321,691



1.37

%


9,513,932



0.80

%


9,262,979



1.37

%






















Noninterest-bearing liabilities





















    Noninterest-bearing demand deposits


3,535,432





3,335,866





2,513,458





3,172,841





2,485,291




    Other liabilities


529,326





520,425





275,038





465,116





227,400




    Shareholders' equity


2,230,422





2,185,865





2,210,327





2,208,753





2,150,945




       Total liabilities & shareholders' equity


$

15,842,010





$

15,710,204





$

14,320,514





$

15,360,642





$

14,126,615

























Net interest income


$

112,180





$

111,576





$

121,535





$

338,038





$

365,352




Net interest spread




3.14

%




3.17

%




3.57

%




3.25

%




3.64

%

Net interest margin




3.32

%




3.38

%




3.91

%




3.46

%




3.98

%






















Tax equivalent adjustment




0.04

%




0.06

%




0.05

%




0.06

%




0.05

%

Net interest margin (fully tax equivalent)




3.36

%




3.44

%




3.96

%




3.52

%




4.03

%











































(1) Loans held for sale and nonaccrual loans are included in gross loans.



 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)

(Dollars in thousands)

(Unaudited)









































 Linked Qtr. Income Variance


 Comparable Qtr. Income Variance


Year-to-Date Income Variance



Rate


Volume


Total


Rate


Volume


Total


Rate


Volume


Total

Earning assets



















    Investment securities


$

(861)



$

238



$

(623)



$

(2,926)



$

(921)



$

(3,847)



$

(8,771)



$

(4,521)



$

(13,292)


    Interest-bearing deposits with other banks


23



(39)



(16)



(192)



1



(191)



(501)



83



(418)


    Gross loans (2)


(6,273)



3,622



(2,651)



(36,016)



12,479



(23,537)



(82,566)



31,283



(51,283)


       Total earning assets


(7,111)



3,821



(3,290)



(39,134)



11,559



(27,575)



(91,838)



26,845



(64,993)





















Interest-bearing liabilities



















    Total interest-bearing deposits


$

(3,593)



$

(272)



$

(3,865)



$

(12,778)



$

513



$

(12,265)



$

(25,934)



$

1,930



$

(24,004)


    Borrowed funds



















    Short-term borrowings


(1,081)



(142)



(1,223)



(6,833)



(315)



(7,148)



(9,915)



(3,478)



(13,393)


    Long-term debt


(2,211)



3,405



1,194



(2,449)



3,642



1,193



(4,492)



4,210



(282)


       Total borrowed funds


(3,292)



3,263



(29)



(9,282)



3,327



(5,955)



(14,407)



732



(13,675)


       Total interest-bearing liabilities


(6,885)



2,991



(3,894)



(22,060)



3,840



(18,220)



(40,341)



2,662



(37,679)


          Net interest income (1)


$

(226)



$

830



$

604



$

(17,074)



$

7,719



$

(9,355)



$

(51,497)



$

24,183



$

(27,314)








































(1) Not tax equivalent.



















(2) Loans held for sale and nonaccrual loans are included in gross loans.





 

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)












Nine months ended


Sep. 30,


June 30,


Mar. 31,


Dec. 31,


Sep. 30,


Sep. 30,


Sep. 30,


2020


2020


2020


2019


2019


2020


2019

ALLOWANCE FOR CREDIT LOSS ACTIVITY











Balance at beginning of period

$

158,661



$

143,885



$

57,650



$

56,552



$

61,549



$

57,650



$

56,542


 Day one adoption impact of ASC 326

0



0



61,505



0



0



61,505



0


  Provision for credit losses

15,299



17,859



23,880



4,629



5,228



57,038



25,969


  Gross charge-offs














    Commercial and industrial

1,467



1,282



1,091



2,919



9,556



3,840



23,757


    Lease financing

852



0



0



62



0



852



100


    Construction real estate

0



0



0



0