First Financial Bancorp Announces First Quarter 2019 Results

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April 25, 2019 4:15 PM EDT

CINCINNATI, April 25, 2019 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the first quarter 2019 and a quarterly dividend of $0.22 per share, payable on June 17, 2019 to shareholders of record as of June 3, 2019.

For the three months ended March 31, 2019, the Company reported net income of $45.8 million, or $0.47 per diluted common share.  These results compare to net income of $55.0 million, or $0.56 per diluted common share, for the fourth quarter of 2018 and $30.5 million, or $0.49 per diluted common share, for the first quarter of 2018.   Income before taxes was negatively impacted by a $10.0 million charge-off related to a $16.8 million franchise lending relationship, as well as recognition of $1.8 million of primarily merger-related costs, the combination reducing earnings per diluted common share by $0.09 on a net basis.

Return on average assets for the first quarter of 2019 was 1.33% while return on average tangible common equity was 15.95%.  These compare to a return on average assets of 1.59% and return on average tangible common equity of 19.63% in the fourth quarter of 2018 and a return on average assets of 1.40% and a return on average tangible common equity of 17.18% in the first quarter of 2018.

First quarter 2019 highlights include:

  • After adjustments(1) for merger-related and nonrecurring items:
    • Net income of $0.48 per diluted common share
    • 1.38% return on average assets
    • 16.45% return on average tangible common equity
  • Net interest margin of 4.10% on a fully tax-equivalent basis(1)
    • 11 basis point reduction from the linked quarter driven by lower loan fees and moderated purchase accounting impact
  • Noninterest expenses of $78.5 million, or $76.7 million as adjusted(1)
    • Efficiency ratio of 52.9% for the first quarter; 51.7% as adjusted(1)
  • Stable loan  balances
    • 8% linked quarter increase in loan origination activity offset by prepayments 
    • Average loan balances increased $11.0 million compared to the linked quarter
  • Modest average deposit growth as an increase in time deposits offset seasonal declines in public funds and business demand deposit accounts
  • Annualized net charge-offs increased to 64 basis points as a percentage of average loans for the quarter driven by the previously mentioned $10.0 million charge-off resulting in provision expense of $14.1 million
  • Continued capital expansion
    • Total capital of 14.24%; Tier 1 common equity of 12.03%; Tangible common equity of 9.15%
    • Tangible book value increased to $12.19

 

1) Financial information in this release that is described as "adjusted" or that is presented on a fully tax equivalent basis is non-GAAP.  For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Archie Brown, President and Chief Executive Officer, commented, "One year into operating as a combined company, we are encouraged that our core banking fundamentals and earnings power have met our initial expectations.  We are disappointed that a single credit loss muted what would have otherwise been a very profitable first quarter.  Aside from the $0.08 per share impact from the franchise loss, adjusted(1) earnings per share totaled $0.48 and our return on assets and average tangible common equity remained strong."

Mr. Brown continued, "We remain optimistic about the sustainability of our overall performance.  Our net interest margin was strong, despite expected declines in purchase accounting accretion and loan fee volatility.  Loan origination activity increased to its highest level post-merger, but we continue to face prepayment headwinds that are muting the impact of new production.  We are also pleased with modest deposit growth as higher time deposit balances offset expected seasonal declines in business DDA and public funds.  Our efficiency ratio continues to reflect disciplined expense management and we will look to maximize fee income opportunities going forward."

Mr. Brown concluded, "The Board announced a quarterly dividend of $0.22, which equates to an attractive 3.7% yield. Our strong and growing capital ratios reflect the Company's high level performance and give us flexibility to evaluate additional capital deployment opportunities such as executing on our share repurchase plan or making strategic acquisitions that enhance fee income or strengthen our market position."

Full detail of the Company's first quarter 2019 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast InformationFirst Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 26, 2019 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required).  The number should be dialed five to ten minutes prior to the start of the conference call.  The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com.  A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10130234.  The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on WebsiteThis 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 MeasuresThis 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 StatementCertain 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 March 31, 2019, the Company had $14.1 billion in assets, $8.8 billion in loans, $10.1 billion in deposits and $2.1 billion in shareholders' equity.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.6 billion in assets under management as of March 31, 2019.  The Company operated 159 banking centers as of March 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,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2019

2018

2018

2018

2018

RESULTS OF OPERATIONS

Net income

$

45,839

$

55,014

$

50,657

$

36,418

$

30,506

Net earnings per share - basic

$

0.47

$

0.56

$

0.52

$

0.37

$

0.49

Net earnings per share - diluted

$

0.47

$

0.56

$

0.51

$

0.37

$

0.49

Dividends declared per share

$

0.22

$

0.20

$

0.20

$

0.19

$

0.19

KEY FINANCIAL RATIOS

Return on average assets

1.33

%

1.59

%

1.45

%

1.05

%

1.40

%

Return on average shareholders' equity

8.88

%

10.68

%

9.94

%

7.36

%

13.31

%

Return on average tangible shareholders' equity

15.95

%

19.63

%

18.52

%

13.75

%

17.18

%

Net interest margin

4.05

%

4.16

%

4.06

%

4.10

%

3.80

%

Net interest margin (fully tax equivalent) (1)

4.10

%

4.21

%

4.12

%

4.15

%

3.84

%

Ending shareholders' equity as a percent of ending assets

15.14

%

14.86

%

14.70

%

14.46

%

10.56

%

Ending tangible shareholders' equity as a percent of:

Ending tangible assets

9.15

%

8.79

%

8.53

%

8.30

%

8.41

%

Risk-weighted assets

11.61

%

11.20

%

10.77

%

10.52

%

10.09

%

Average shareholders' equity as a percent of average assets

15.01

%

14.84

%

14.62

%

14.33

%

10.53

%

Average tangible shareholders' equity as a percent of

    average tangible assets

8.95

%

8.66

%

8.42

%

8.16

%

8.35

%

Book value per share

$

21.60

$

21.23

$

20.79

$

20.56

$

15.11

Tangible book value per share

$

12.19

$

11.72

$

11.25

$

11.01

$

11.75

Common equity tier 1 ratio (2)

12.03

%

11.87

%

11.52

%

11.15

%

10.77

%

Tier 1 ratio (2)

12.43

%

12.28

%

11.93

%

11.55

%

10.77

%

Total capital ratio (2)

14.24

%

14.10

%

13.77

%

13.36

%

13.17

%

Leverage ratio (2)

9.84

%

9.71

%

9.41

%

9.06

%

9.00

%

AVERAGE BALANCE SHEET ITEMS

Loans (3)

$

8,773,310

$

8,766,302

$

8,848,710

$

8,933,400

$

6,016,492

FDIC indemnification asset

—

—

—

—

1,502

Investment securities

3,355,732

3,204,758

3,168,044

3,157,339

2,042,781

Interest-bearing deposits with other banks

34,709

32,013

39,873

29,261

27,073

  Total earning assets

$

12,163,751

$

12,003,073

$

12,056,627

$

12,120,000

$

8,087,848

Total assets

$

13,952,551

$

13,768,958

$

13,822,675

$

13,956,360

$

8,830,176

Noninterest-bearing deposits

$

2,457,587

$

2,476,773

$

2,388,976

$

2,421,230

$

1,570,572

Interest-bearing deposits

7,610,092

7,573,069

7,499,112

7,961,405

5,332,740

  Total deposits

$

10,067,679

$

10,049,842

$

9,888,088

$

10,382,635

$

6,903,312

Borrowings

$

1,587,068

$

1,509,642

$

1,748,415

$

1,408,024

$

866,848

Shareholders' equity

$

2,094,234

$

2,042,884

$

2,021,400

$

2,000,093

$

929,474

CREDIT QUALITY RATIOS

Allowance to ending loans

0.64

%

0.64

%

0.65

%

0.61

%

0.89

%

Allowance to nonaccrual loans

95.40

%

79.97

%

136.22

%

133.65

%

179.57

%

Allowance to nonperforming loans

68.94

%

65.13

%

92.08

%

86.80

%

120.24

%

Nonperforming loans to total loans

0.93

%

0.98

%

0.71

%

0.70

%

0.74

%

Nonperforming assets to ending loans, plus OREO

0.95

%

1.00

%

0.73

%

0.72

%

0.76

%

Nonperforming assets to total assets

0.60

%

0.63

%

0.47

%

0.46

%

0.52

%

Classified assets to total assets

1.01

%

0.94

%

1.00

%

1.00

%

0.98

%

Net charge-offs to average loans (annualized)

0.64

%

0.29

%

(0.02)

%

0.18

%

0.13

%

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate.  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) March 31, 2019 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2019

2018

First

Fourth

Third

Second

First

Full

Quarter

Quarter

Quarter

Quarter

Quarter

Year

Interest income

  Loans and leases, including fees

$

123,056

$

126,580

$

123,397

$

122,290

$

74,920

$

447,187

  Investment securities

     Taxable

24,235

22,761

21,801

20,844

13,670

79,076

     Tax-exempt

4,258

3,896

3,807

4,068

1,657

13,428

        Total investment securities interest

28,493

26,657

25,608

24,912

15,327

92,504

  Other earning assets

210

192

215

177

107

691

       Total interest income

151,759

153,429

149,220

147,379

90,354

540,382

Interest expense

  Deposits

19,243

17,198

14,672

14,794

10,298

56,962

  Short-term borrowings

5,960

5,186

6,052

4,132

2,663

18,033

  Long-term borrowings

5,041

5,086

5,011

4,474

1,581

16,152

      Total interest expense

30,244

27,470

25,735

23,400

14,542

91,147

      Net interest income

121,515

125,959

123,485

123,979

75,812

449,235

  Provision for loan and lease losses

14,083

5,310

3,238

3,735

2,303

14,586

      Net interest income after provision for loan and lease losses

107,432

120,649

120,247

120,244

73,509

434,649

Noninterest income

  Service charges on deposit accounts

8,903

10,185

10,316

9,568

5,039

35,108

  Trust and wealth management fees

4,070

3,703

3,728

3,697

3,954

15,082

  Bankcard income

5,586

6,247

5,261

5,343

3,394

20,245

  Client derivative fees

1,704

1,433

3,029

1,463

1,757

7,682

  Net gains from sales of loans

1,890

1,428

1,739

2,316

588

6,071

  Net gains on sale of investment securities

(178)

36

(167)

(30)

0

(161)

  Other

4,852

6,472

4,778

5,899

2,206

19,355

      Total noninterest income

26,827

29,504

28,684

28,256

16,938

103,382

Noninterest expenses

  Salaries and employee benefits

47,912

51,505

50,852

55,531

31,102

188,990

  Net occupancy

6,630

6,322

6,765

6,631

4,497

24,215

  Furniture and equipment

3,416

3,498

4,072

5,298

2,040

14,908

  Data processing

5,127

5,599

4,502

14,304

3,672

28,077

  Marketing

1,606

1,651

2,502

2,644

801

7,598

  Communication

728

805

785

1,118

459

3,167

  Professional services

2,252

1,794

2,621

5,659

2,198

12,272

  State intangible tax

1,310

1,086

1,223

1,078

765

4,152

  FDIC assessments

950

1,018

734

1,323

894

3,969

  Loss (gain) - other real estate owned

70

41

538

(283)

77

373

  Intangible amortization

2,045

2,229

2,486

2,364

280

7,359

  Other

6,453

7,804

8,335

7,088

5,503

28,730

      Total noninterest expenses

78,499

83,352

85,415

102,755

52,288

323,810

Income before income taxes

55,760

66,801

63,516

45,745

38,159

214,221

Income tax expense (benefit)

9,921

11,787

12,859

9,327

7,653

41,626

      Net income

$

45,839

$

55,014

$

50,657

$

36,418

$

30,506

$

172,595

ADDITIONAL DATA

Net earnings per share - basic

$

0.47

$

0.56

$

0.52

$

0.37

$

0.49

$

1.95

Net earnings per share - diluted

$

0.47

$

0.56

$

0.51

$

0.37

$

0.49

$

1.93

Dividends declared per share

$

0.22

$

0.20

$

0.20

$

0.19

$

0.19

$

0.78

Return on average assets

1.33

%

1.59

%

1.45

%

1.05

%

1.40

%

1.37

%

Return on average shareholders' equity

8.88

%

10.68

%

9.94

%

7.36

%

13.31

%

9.85

%

Interest income

$

151,759

$

153,429

$

149,220

$

147,379

$

90,354

$

540,382

Tax equivalent adjustment

1,523

1,442

1,567

1,420

718

5,147

   Interest income - tax equivalent

153,282

154,871

150,787

148,799

91,072

545,529

Interest expense

30,244

27,470

25,735

23,400

14,542

91,147

   Net interest income - tax equivalent

$

123,038

$

127,401

$

125,052

$

125,399

$

76,530

$

454,382

Net interest margin

4.05

%

4.16

%

4.06

%

4.10

%

3.80

%

4.05

%

Net interest margin (fully tax equivalent) (1)

4.10

%

4.21

%

4.12

%

4.15

%

3.84

%

4.10

%

Full-time equivalent employees

2,087

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 toinvestors 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)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

% Change

% Change

2019

2018

2018

2018

2018

Linked Qtr.

Comparable Qtr.

ASSETS

     Cash and due from banks

$

169,004

$

236,221

$

193,288

$

216,667

$

116,581

(28.5)

%

45.0

%

     Interest-bearing deposits with other banks

50,224

37,738

28,989

37,915

10,200

33.1

%

392.4

%

     Investment securities available-for-sale

3,113,811

2,779,255

2,626,726

2,654,909

1,359,381

12.0

%

129.1

%

     Investment securities held-to-maturity

158,305

429,328

434,369

443,957

633,722

(63.1)

%

(75.0)

%

     Other investments

115,731

115,660

115,757

95,004

53,070

0.1

%

118.1

%

     Loans held for sale

8,217

4,372

13,277

15,821

8,048

87.9

%

2.1

%

     Loans and leases

       Commercial and industrial

2,543,427

2,514,661

2,426,590

2,440,596

1,943,741

1.1

%

30.9

%

       Lease financing

95,573

93,415

95,317

96,198

81,617

2.3

%

17.1

%

       Construction real estate

458,113

548,935

565,077

555,468

494,665

(16.5)

%

(7.4)

%

       Commercial real estate

3,802,179

3,754,681

3,868,143

3,888,993

2,544,051

1.3

%

49.5

%

       Residential real estate

975,120

955,646

932,962

918,904

468,584

2.0

%

108.1

%

       Home equity

797,118

817,282

816,133

835,031

483,643

(2.5)

%

64.8

%

       Installment

90,689

93,212

97,413

100,726

39,248

(2.7)

%

131.1

%

       Credit card

46,982

46,382

45,741

48,665

46,472

1.3

%

1.1

%

          Total loans

8,809,201

8,824,214

8,847,376

8,884,581

6,102,021

(0.2)

%

44.4

%

       Less:

          Allowance for loan and lease losses

56,722

56,542

57,715

54,076

54,380

0.3

%

4.3

%

                Net loans

8,752,479

8,767,672

8,789,661

8,830,505

6,047,641

(0.2)

%

44.7

%

     Premises and equipment

210,676

215,652

219,940

223,950

127,046

(2.3)

%

65.8

%

     Goodwill

879,727

880,251

881,033

883,025

204,083

(0.1)

%

331.1

%

     Other intangibles

38,571

40,805

43,356

42,891

3,506

(5.5)

%

N/M

     Accrued interest and other assets

577,518

479,706

496,271

475,523

335,151

20.4

%

72.3

%

       Total Assets

$

14,074,263

$

13,986,660

$

13,842,667

$

13,920,167

$

8,898,429

0.6

%

58.2

%

LIABILITIES

     Deposits

       Interest-bearing demand

$

2,235,036

$

2,307,071

$

2,284,271

$

2,440,088

$

1,442,399

(3.1)

%

55.0

%

       Savings

3,100,894

3,167,325

3,134,944

3,087,683

2,450,196

(2.1)

%

26.6

%

       Time

2,309,810

2,173,564

1,957,574

2,104,044

1,545,273

6.3

%

49.5

%

          Total interest-bearing deposits

7,645,740

7,647,960

7,376,789

7,631,815

5,437,868

0.0

%

40.6

%

       Noninterest-bearing

2,488,157

2,492,434

2,375,845

2,471,932

1,572,636

(0.2)

%

58.2

%

          Total deposits

10,133,897

10,140,394

9,752,634

10,103,747

7,010,504

(0.1)

%

44.6

%

     Federal funds purchased and securities sold

         under agreements to repurchase

95,015

183,591

123,452

88,070

56,732

(48.2)

%

67.5

%

     FHLB short-term borrowings

952,400

857,100

1,170,800

1,100,233

601,600

11.1

%

58.3

%

          Total short-term borrowings

1,047,415

1,040,691

1,294,252

1,188,303

658,332

0.6

%

59.1

%

     Long-term debt

546,423

570,739

570,037

469,423

169,695

(4.3)

%

222.0

%

          Total borrowed funds

1,593,838

1,611,430

1,864,289

1,657,726

828,027

(1.1)

%

92.5

%

     Accrued interest and other liabilities

216,109

156,587

190,224

145,757

119,913

38.0

%

80.2

%

       Total Liabilities

11,943,844

11,908,411

11,807,147

11,907,230

7,958,444

0.3

%

50.1

%

SHAREHOLDERS' EQUITY

     Common stock

1,622,554

1,633,256

1,633,828

1,632,572

571,457

(0.7)

%

183.9

%

     Retained earnings

626,408

600,014

564,545

533,319

515,649

4.4

%

21.5

%

     Accumulated other comprehensive loss

(19,635)

(44,408)

(52,897)

(43,008)

(34,834)

(55.8)

%

(43.6)

%

     Treasury stock, at cost

(98,908)

(110,613)

(109,956)

(109,946)

(112,287)

(10.6)

%

(11.9)

%

       Total Shareholders' Equity

2,130,419

2,078,249

2,035,520

2,012,937

939,985

2.5

%

126.6

%

       Total Liabilities and Shareholders' Equity

$

14,074,263

$

13,986,660

$

13,842,667

$

13,920,167

$

8,898,429

0.6

%

58.2

%

 

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Quarterly Averages

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2019

2018

2018

2018

2018

ASSETS

     Cash and due from banks

$

181,695

$

213,927

$

199,843

$

224,824

$

116,095

     Federal funds sold

0

0

0

786

0

     Interest-bearing deposits with other banks

34,709

32,013

39,873

28,475

27,073

     Investment securities

3,355,732

3,204,758

3,168,044

3,157,339

2,042,781

     Loans held for sale

6,392

10,411

15,270

14,462

9,171

     Loans and leases

       Commercial and industrial

2,509,274

2,402,296

2,392,229

2,421,244

1,897,726

       Lease financing

91,043

94,111

94,030

94,431

86,755

       Construction real estate

496,153

567,086

570,125

577,883

483,930

       Commercial real estate

3,762,314

3,793,376

3,887,748

3,923,784

2,495,604

       Residential real estate

961,584

941,047

918,361

929,667

468,855

       Home equity

807,768

813,779

822,834

825,236

487,073

       Installment

91,270

95,779

99,907

99,896

40,409

       Credit card

47,512

48,417

48,206

46,797

46,969

          Total loans

8,766,918

8,755,891

8,833,440

8,918,938

6,007,321

       Less:

          Allowance for loan and lease losses

57,088

58,216

55,877

55,318

55,016

                Net loans

8,709,830

8,697,675

8,777,563

8,863,620

5,952,305

     Premises and equipment

213,208

218,430

222,718

230,475

126,016

     Goodwill

878,541

878,669

882,917

883,179

204,083

     Other intangibles

39,900

42,305

43,830

44,383

3,674

     Accrued interest and other assets

532,544

470,770

472,617

508,817

348,978

       Total Assets

$

13,952,551

$

13,768,958

$

13,822,675

$

13,956,360

$

8,830,176

LIABILITIES

     Deposits

       Interest-bearing demand

$

2,269,948

$

2,342,528

$

2,334,305

$

2,573,150

$

1,415,603

       Savings

3,115,557

3,156,789

3,149,871

3,196,059

2,450,697

       Time

2,224,587

2,073,752

2,014,936

2,192,196

1,466,440

          Total interest-bearing deposits

7,610,092

7,573,069

7,499,112

7,961,405

5,332,740

       Noninterest-bearing

2,457,587

2,476,773

2,388,976

2,421,230

1,570,572

          Total deposits

10,067,679

10,049,842

9,888,088

10,382,635

6,903,312

     Federal funds purchased and securities sold

          under agreements to repurchase

103,147

65,805

112,308

97,708

72,865

     FHLB short-term borrowings

913,974

873,533

1,076,106

818,909

667,641

          Total short-term borrowings

1,017,121

939,338

1,188,414

916,617

740,506

     Long-term debt

569,947

570,304

560,001

491,407

126,342

       Total borrowed funds

1,587,068

1,509,642

1,748,415

1,408,024

866,848

     Accrued interest and other liabilities

203,570

166,590

164,772

165,608

130,542

       Total Liabilities

11,858,317

11,726,074

11,801,275

11,956,267

7,900,702

SHAREHOLDERS' EQUITY

     Common stock

1,625,228

1,632,361

1,633,129

1,632,569

572,915

     Retained earnings

610,737

576,145

542,835

517,548

503,140

     Accumulated other comprehensive loss

(39,796)

(55,161)

(44,505)

(39,117)

(33,285)

     Treasury stock, at cost

(101,935)

(110,461)

(110,059)

(110,907)

(113,296)

       Total Shareholders' Equity

2,094,234

2,042,884

2,021,400

2,000,093

929,474

       Total Liabilities and Shareholders' Equity

$

13,952,551

$

13,768,958

$

13,822,675

$

13,956,360

$

8,830,176

 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)

 Quarterly Averages

March 31, 2019

December 31, 2018

March 31, 2018

 Linked Qtr. Income Variance

 Comparable Qtr. Income Variance

Balance

Yield

Balance

Yield

Balance

Yield

Rate

Volume

Total

Rate

Volume

Total

Earning assets

    Investments:

      Investment securities

$

3,355,732

3.44

%

$

3,204,758

3.30

%

$

2,042,781

3.04

%

$

1,159

$

677

$

1,836

$

2,018

$

11,148

$

13,166

      Interest-bearing deposits with other banks

34,709

2.45

%

32,013

2.38

%

27,073

1.60

%

6

12

18

57

46

103

    Gross loans (1)

8,773,310

5.69

%

8,766,302

5.73

%

6,017,994

5.05

%

(890)

(2,634)

(3,524)

9,489

38,647

48,136

       Total earning assets

12,163,751

5.06

%

12,003,073

5.07

%

8,087,848

4.53

%

275

(1,945)

(1,670)

11,564

49,841

61,405

Nonearning assets

    Allowance for loan and lease losses

(57,088)

(58,216)

(55,016)

    Cash and due from banks

181,695

213,927

116,095

    Accrued interest and other assets

1,664,193

1,610,174

681,249

       Total assets

$

13,952,551

$

13,768,958

$

8,830,176

Interest-bearing liabilities

    Deposits:

      Interest-bearing demand

$

2,269,948

0.50

%

$

2,342,528

0.48

%

$

1,415,603

0.37

%

      Savings

3,115,557

0.76

%

3,156,789

0.66

%

2,450,697

0.64

%

      Time

2,224,587

1.94

%

2,073,752

1.75

%

1,466,440

1.41

%

    Total interest-bearing deposits

7,610,092

1.03

%

7,573,069

0.90

%

5,332,740

0.78

%

$

2,377

$

(332)

$

2,045

$

3,186

$

5,759

$

8,945

    Borrowed funds

      Short-term borrowings

1,017,121

2.38

%

939,338

2.19

%

740,506

1.46

%

441

333

774

1,676

1,621

3,297

      Long-term debt

569,947

3.59

%

570,304

3.54

%

126,342

5.07

%

70

(115)

(45)

(464)

3,924

3,460

        Total borrowed funds

1,587,068

2.81

%

1,509,642

2.70

%

866,848

1.99

%

511

218

729

1,212

5,545

6,757

       Total interest-bearing liabilities

9,197,160

1.33

%

9,082,711

1.20

%

6,199,588

0.95

%

2,888

(114)

2,774

4,398

11,304

15,702

Noninterest-bearing liabilities

    Noninterest-bearing demand deposits

2,457,587

2,476,773

1,570,572

    Other liabilities

203,570

166,590

130,542

    Shareholders' equity

2,094,234

2,042,884

929,474

       Total liabilities & shareholders' equity

$

13,952,551

$

13,768,958

$

8,830,176

Net interest income

$

121,515

$

125,959

$

75,812

$

(2,613)

$

(1,831)

$

(4,444)

$

7,166

$

38,537

$

45,703

Net interest spread

3.73

%

3.87

%

3.58

%

Net interest margin

4.05

%

4.16

%

3.80

%

Tax equivalent adjustment

0.05

%

0.05

%

0.04

%

Net interest margin (fully tax equivalent)

4.10

%

4.21

%

3.84

%

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

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2019

2018

2018

2018

2018

ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY

Balance at beginning of period

$

56,542

$

57,715

$

54,076

$

54,380

$

54,021

  Provision for loan and lease losses

14,083

5,310

3,238

3,735

2,303

  Gross charge-offs

    Commercial and industrial

12,328

6,060

232

4,356

885

    Lease financing

100

0

0

0

0

    Construction real estate

0

0

0

0

0

    Commercial real estate

1,214

1,679

902

78

2,176

    Residential real estate

82

80

145

101

96

    Home equity

468

747

351

385

242

    Installment

49

158

43

218

16

    Credit card

341

392

390

684

254

      Total gross charge-offs

14,582

9,116

2,063

5,822

3,669

  Recoveries

    Commercial and industrial

240

485

627

518

436

    Lease financing

0

0

0

1

0

    Construction real estate

63

0

146

0

0

    Commercial real estate

73

1,681

786

887

752

    Residential real estate

36

44

71

70

26

    Home equity

185

274

419

187

429

    Installment

48

94

351

82

48

    Credit card

34

55

64

38

34

      Total recoveries

679

2,633

2,464

1,783

1,725

  Total net charge-offs

13,903

6,483

(401)

4,039

1,944

Ending allowance for loan and lease losses

$

56,722

$

56,542

$

57,715

$

54,076

$

54,380

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)

  Commercial and industrial

1.95

%

0.92

%

(0.07)

%

0.64

%

0.10

%

  Lease financing

0.45

%

0.00

%

0.00

%

0.00

%

0.00

%

  Construction real estate

(0.05)

%

0.00

%

(0.10)

%

0.00

%

0.00

%

  Commercial real estate

0.12

%

0.00

%

0.01

%

(0.08)

%

0.23

%

  Residential real estate

0.02

%

0.02

%

0.03

%

0.01

%

0.06

%

  Home equity

0.14

%

0.23

%

(0.03)

%

0.10

%

(0.16)

%

  Installment

0.00

%

0.27

%

(1.22)

%

0.55

%

(0.32)

%

  Credit card

2.62

%

2.76

%

2.68

%

5.54

%

1.90

%

     Total net charge-offs

0.64

%

0.29

%

(0.02)

%

0.18

%

0.13

%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

  Nonaccrual loans (1)

    Commercial and industrial

$

19,263

$

30,925

$

4,310

$

3,448

$

6,275

    Lease financing

301

22

0

0

0

    Construction real estate

7

9

10

24

26

    Commercial real estate

21,082

20,500

20,338

21,593

16,878

    Residential real estate

13,052

13,495

11,365

9,278

3,324

    Home equity

5,581

5,580

6,018

5,820

3,484

    Installment

170

169

327

299

296

      Nonaccrual loans

59,456

70,700

42,368

40,462

30,283

  Accruing troubled debt restructurings (TDRs)

22,817

16,109

20,313

21,839

14,943

     Total nonperforming loans

82,273

86,809

62,681

62,301

45,226

  Other real estate owned (OREO)

1,665

1,401

1,918

1,853

1,065

     Total nonperforming assets

83,938

88,210

64,599

64,154

46,291

  Accruing loans past due 90 days or more

178

63

144

327

529

     Total underperforming assets

$

84,116

$

88,273

$

64,743

$

64,481

$

46,820

Total classified assets

$

142,014

$

131,668

$

138,868

$

139,317

$

87,577

CREDIT QUALITY RATIOS

Allowance for loan and lease losses to

     Nonaccrual loans

95.40

%

79.97

%

136.22

%

133.65

%

179.57

%

     Nonperforming loans

68.94

%

65.13

%

92.08

%

86.80

%

120.24

%

     Total ending loans

0.64

%

0.64

%

0.65

%

0.61

%

0.89

%

Nonperforming loans to total loans

0.93

%

0.98

%

0.71

%

0.70

%

0.74

%

Nonperforming assets to

     Ending loans, plus OREO

0.95

%

1.00

%

0.73

%

0.72

%

0.76

%

     Total assets

0.60

%

0.63

%

0.47

%

0.46

%

0.52

%

Nonperforming assets, excluding accruing TDRs to

     Ending loans, plus OREO

0.69

%

0.82

%

0.50

%

0.48

%

0.51

%

     Total assets

0.43

%

0.52

%

0.32

%

0.30

%

0.35

%

Classified assets to total assets

1.01

%

0.94

%

1.00

%

1.00

%

0.98

%

(1)  Nonaccrual loans include nonaccrual TDRs of $13.1 million, $22.4 million, $4.7 million, $5.9 million, and $6.0 million, as of March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.

 

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

June 30,

Mar. 31,

2019

2018

2018

2018

2018

PER COMMON SHARE

Market Price

  High

$

28.56

$

29.58

$

32.35

$

33.55

$

29.35

  Low

$

23.02

$

22.40

$

29.40

$

28.10

$

26.40

  Close

$

24.06

$

23.72

$

29.70

$

30.65

$

29.35

Average shares outstanding - basic

97,926,088

97,424,839

97,411,201

97,347,533

61,654,686

Average shares outstanding - diluted

98,436,311

98,468,237

98,484,228

98,432,072

62,180,744

Ending shares outstanding

98,613,872

97,894,286

97,914,526

97,904,897

62,213,823

Total shareholders' equity

$

2,130,419

$

2,078,249

$

2,035,520

$

2,012,937

$

939,985

REGULATORY CAPITAL

Preliminary

Common equity tier 1 capital

$

1,246,004

$

1,215,613

$

1,177,630

$

1,142,718

$

779,491

Common equity tier 1 capital ratio

12.03

%

11.87

%

11.52

%

11.15

%

10.77

%

Tier 1 capital

$

1,287,757

$

1,257,366

$

1,219,383

$

1,184,471

$

779,595

Tier 1 ratio

12.43

%

12.28

%

11.93

%

11.55

%

10.77

%

Total capital

$

1,474,723

$

1,444,146

$

1,407,252

$

1,369,231

$

953,243

Total capital ratio

14.24

%

14.10

%

13.77

%

13.36

%

13.17

%

Total capital in excess of minimum

  requirement

$

387,048

$

432,832

$

397,783

$

356,930

$

238,221

Total risk-weighted assets

$

10,358,805

$

10,241,159

$

10,222,466

$

10,251,147

$

7,240,731

Leverage ratio

9.84

%

9.71

%

9.41

%

9.06

%

9.00

%

OTHER CAPITAL RATIOS

Ending shareholders' equity to ending assets

15.14

%

14.86

%

14.70

%

14.46

%

10.56

%

Ending tangible shareholders' equity to ending tangible assets

9.15

%

8.79

%

8.53

%

8.30

%

8.41

%

Average shareholders' equity to average assets

15.01

%

14.84

%

14.62

%

14.33

%

10.53

%

Average tangible shareholders' equity to average tangible assets

8.95

%

8.66

%

8.42

%

8.16

%

8.35

%

 

 

Cision View original content:http://www.prnewswire.com/news-releases/first-financial-bancorp-announces-first-quarter-2019-results-300838637.html

SOURCE First Financial Bancorp.


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