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First Financial Bancorp Announces Third Quarter Financial Results

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- Third Quarter 2019 Earnings per Diluted Share of $0.51 - 3.7% Loan Growth on an Annualized Basis - 3.96% fully tax equivalent net interest margin - Strong noninterest income of $33.1 million - Successful closing of Bannockburn acquisition

October 17, 2019 4:15 PM EDT

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

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

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

Third quarter 2019 highlights include:

  • After adjustments(1) for merger-related and nonrecurring items:
    • Net income of $0.56 per diluted common share
    • 1.54% return on average assets; 17.63% return on average tangible common equity
  • Loan balances grew 3.7% on an annualized basis
    • $82.9 million increase compared to the linked quarter
  • Net interest margin of 3.96% on a fully tax-equivalent basis(1)
    • 8 basis point reduction from the linked quarter driven by lower asset yields
  • Noninterest income of $33.1 million
    • Positively impacted by acquisition of Bannockburn, strong mortgage banking income, and sustained client derivative and service charge income; combined to largely offset the impact from Durbin
  • Noninterest expenses of $86.2 million, or $80.3 million as adjusted(1)
    • Efficiency ratio of 55.7%; 52.0% as adjusted(1)
  • ALLL declined to $56.6 million, or 0.62% of loans; Improvement in nonperforming and classified asset levels; elevated net charge-offs related to previously discussed franchise relationships
  • Strong capital ratios
    • Total capital of 13.64%; Tier 1 common equity of 11.53%; Tangible common equity of 9.17%
    • Tangible book value decreased to $12.33

  

(1)

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

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

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

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

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

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

Teleconference / Webcast Information 

First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, October 18, 2019 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10135470. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on Website

This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non- GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Forward-Looking Statement

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward- looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward- looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; (ii) the effect of and changes in policies and laws or regulatory agencies, including the Dodd- Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iii) management's ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the possibility that any of the anticipated benefits of the Company's merger with MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers' performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2018, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of September 30, 2019, the Company had $14.5 billion in assets, $9.1 billion in loans, $10.1 billion in deposits and $2.3 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.9 billion in assets under management as of September 30, 2019. The Company operated 145 full service banking centers as of September 30, 2019, primarily in Ohio, Indiana and Kentucky, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended,

Nine months ended,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Sep. 30,

2019

2019

2019

2018

2018

2019

2018

RESULTS OF OPERATIONS

Net income

$

50,856

$

52,703

$

45,839

$

55,014

$

50,657

$

149,398

$

117,581

Net earnings per share - basic

$

0.52

$

0.54

$

0.47

$

0.56

$

0.52

$

1.52

$

1.37

Net earnings per share - diluted

$

0.51

$

0.53

$

0.47

$

0.56

$

0.51

$

1.51

$

1.36

Dividends declared per share

$

0.23

$

0.22

$

0.22

$

0.20

$

0.20

$

0.67

$

0.58

KEY FINANCIAL RATIOS

Return on average assets

1.41

%

1.50

%

1.33

%

1.59

%

1.45

%

1.41

%

1.29

%

Return on average shareholders' equity

9.13

%

9.85

%

8.88

%

10.68

%

9.94

%

9.29

%

9.50

%

Return on average tangible shareholders' equity

16.15

%

17.33

%

15.95

%

19.63

%

18.52

%

16.48

%

16.42

%

Net interest margin

3.91

%

3.99

%

4.05

%

4.16

%

4.06

%

3.98

%

4.01

%

Net interest margin (fully tax equivalent) (1)

3.96

%

4.04

%

4.10

%

4.21

%

4.12

%

4.03

%

4.06

%

Ending shareholders' equity as a percent of ending assets

15.62

%

15.16

%

15.14

%

14.86

%

14.70

%

15.62

%

14.70

%

Ending tangible shareholders' equity as a percent of:

Ending tangible assets

9.17

%

9.34

%

9.15

%

8.79

%

8.53

%

9.17

%

8.53

%

Risk-weighted assets

11.35

%

11.82

%

11.61

%

11.20

%

10.77

%

11.35

%

10.77

%

Average shareholders' equity as a percent of average assets

15.43

%

15.22

%

15.01

%

14.84

%

14.62

%

15.23

%

13.54

%

Average tangible shareholders' equity as a percent of

average tangible assets

9.35

%

9.26

%

8.95

%

8.66

%

8.42

%

9.19

%

8.31

%

Book value per share

$

22.59

$

22.18

$

21.60

$

21.23

$

20.79

$

22.59

$

20.79

Tangible book value per share

$

12.33

$

12.79

$

12.19

$

11.72

$

11.25

$

12.33

$

11.25

Common equity tier 1 ratio (2)

11.53

%

12.00

%

12.03

%

11.87

%

11.52

%

11.53

%

11.52

%

Tier 1 ratio (2)

11.93

%

12.40

%

12.43

%

12.28

%

11.93

%

11.93

%

11.93

%

Total capital ratio (2)

13.64

%

14.20

%

14.24

%

14.10

%

13.77

%

13.64

%

13.77

%

Leverage ratio (2)

9.75

%

10.02

%

9.84

%

9.71

%

9.41

%

9.75

%

9.41

%

AVERAGE BALANCE SHEET ITEMS

Loans (3)

$

9,014,092

$

8,852,662

$

8,773,310

$

8,766,302

$

8,848,710

$

8,880,904

$

7,943,737

Investment securities

3,290,666

3,408,994

3,355,732

3,204,758

3,168,044

3,351,559

2,793,510

Interest-bearing deposits with other banks

38,569

33,255

34,709

32,013

39,873

35,525

32,116

Total earning assets

$

12,343,327

$

12,294,911

$

12,163,751

$

12,003,073

$

12,056,627

$

12,267,988

$

10,769,363

Total assets

$

14,320,514

$

14,102,733

$

13,952,551

$

13,768,958

$

13,822,675

$

14,126,615

$

12,221,358

Noninterest-bearing deposits

$

2,513,458

$

2,484,214

$

2,457,587

$

2,476,773

$

2,388,976

$

2,485,291

$

2,129,924

Interest-bearing deposits

7,504,708

7,612,146

7,610,092

7,573,069

7,499,112

7,575,263

6,939,021

Total deposits

$

10,018,166

$

10,096,360

$

10,067,679

$

10,049,842

$

9,888,088

$

10,060,554

$

9,068,945

Borrowings

$

1,816,983

$

1,656,570

$

1,587,068

$

1,509,642

$

1,748,415

$

1,687,716

$

1,344,325

Shareholders' equity

$

2,210,327

$

2,146,997

$

2,094,234

$

2,042,884

$

2,021,400

$

2,150,945

$

1,654,322

CREDIT QUALITY RATIOS

Allowance to ending loans

0.62

%

0.69

%

0.64

%

0.64

%

0.65

%

0.62

%

0.65

%

Allowance to nonaccrual loans

93.18

%

119.86

%

95.40

%

79.97

%

136.22

%

93.18

%

136.22

%

Allowance to nonperforming loans

71.46

%

69.33

%

68.94

%

65.13

%

92.08

%

71.46

%

92.08

%

Nonperforming loans to total loans

0.87

%

0.99

%

0.93

%

0.98

%

0.71

%

0.87

%

0.71

%

Nonperforming assets to ending loans, plus OREO

0.89

%

1.00

%

0.95

%

1.00

%

0.73

%

0.89

%

0.73

%

Nonperforming assets to total assets

0.56

%

0.62

%

0.60

%

0.63

%

0.47

%

0.56

%

0.47

%

Classified assets to total assets

0.92

%

1.02

%

1.01

%

0.94

%

1.00

%

0.92

%

1.00

%

Net charge-offs to average loans (annualized)

0.45

%

0.08

%

0.64

%

0.29

%

(0.02)

%

0.39

%

0.09

%

(1)

The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

(2)

September 30, 2019 regulatory capital ratios are preliminary.

(3)

Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

Three months ended,

Nine months ended,

Sep. 30,

Sep. 30,

2019

2018

% Change

2019

2018

% Change

Interest income

Loans and leases, including fees

$

126,786

$

123,397

2.7

%

$

376,207

$

320,607

17.3

%

Investment securities

Taxable

22,180

21,801

1.7

%

70,031

56,315

24.4

%

Tax-exempt

4,457

3,807

17.1

%

13,051

9,532

36.9

%

Total investment securities interest

26,637

25,608

4.0

%

83,082

65,847

26.2

%

Other earning assets

222

215

3.3

%

638

499

27.9

%

Total interest income

153,645

149,220

3.0

%

459,927

386,953

18.9

%

Interest expense

Deposits

20,151

14,672

37.3

%

60,006

39,764

50.9

%

Short-term borrowings

7,199

6,052

19.0

%

19,805

12,847

54.2

%

Long-term borrowings

4,760

5,011

(5.0)

%

14,764

11,066

33.4

%

Total interest expense

32,110

25,735

24.8

%

94,575

63,677

48.5

%

Net interest income

121,535

123,485

(1.6)

%

365,352

323,276

13.0

%

Provision for loan and lease losses

5,228

3,238

61.5

%

25,969

9,276

180.0

%

Net interest income after provision for loan and lease losses

116,307

120,247

(3.3)

%

339,383

314,000

8.1

%

Noninterest income

Service charges on deposit accounts

9,874

10,316

(4.3)

%

28,596

24,923

14.7

%

Trust and wealth management fees

3,718

3,728

(0.3)

%

11,731

11,379

3.1

%

Bankcard income

3,316

5,261

(37.0)

%

15,399

13,998

10.0

%

Client derivative fees

4,859

3,029

60.4

%

11,468

6,249

83.5

%

Foreign exchange income

1,708

0

N/M

1,725

0

N/M

Net gains from sales of loans

4,806

1,739

176.4

%

10,128

4,643

118.1

%

Net gains (losses) on sale of investment securities

105

(167)

162.9

%

(110)

(197)

(44.2)

%

Other

4,754

4,778

(0.5)

%

15,668

12,883

21.6

%

Total noninterest income

33,140

28,684

15.5

%

94,605

73,878

28.1

%

Noninterest expenses

Salaries and employee benefits

53,212

50,852

4.6

%

155,109

137,485

12.8

%

Net occupancy

5,509

6,765

(18.6)

%

17,735

17,893

(0.9)

%

Furniture and equipment

4,120

4,072

1.2

%

11,758

11,410

3.0

%

Data processing

5,774

4,502

28.3

%

15,885

22,478

(29.3)

%

Marketing

1,346

2,502

(46.2)

%

4,928

5,947

(17.1)

%

Communication

910

785

15.9

%

2,385

2,362

1.0

%

Professional services

4,771

2,621

82.0

%

9,062

10,478

(13.5)

%

State intangible tax

1,445

1,223

18.2

%

4,062

3,066

32.5

%

FDIC assessments

(1,097)

734

(249.5)

%

918

2,951

(68.9)

%

Intangible amortization

2,432

2,486

(2.2)

%

6,521

5,130

27.1

%

Other

7,804

8,873

(12.0)

%

20,740

21,258

(2.4)

%

Total noninterest expenses

86,226

85,415

0.9

%

249,103

240,458

3.6

%

Income before income taxes

63,221

63,516

(0.5)

%

184,885

147,420

25.4

%

Income tax expense

12,365

12,859

(3.8)

%

35,487

29,839

18.9

%

Net income

$

50,856

$

50,657

0.4

%

$

149,398

$

117,581

27.1

%

ADDITIONAL DATA

Net earnings per share - basic

$

0.52

$

0.52

$

1.52

$

1.37

Net earnings per share - diluted

$

0.51

$

0.51

$

1.51

$

1.36

Dividends declared per share

$

0.23

$

0.20

$

0.67

$

0.58

Return on average assets

1.41

%

1.45

%

1.41

%

1.29

%

Return on average shareholders' equity

9.13

%

9.94

%

9.29

%

9.50

%

Interest income

$

153,645

$

149,220

3.0

%

$

459,927

$

386,953

18.9

%

Tax equivalent adjustment

1,759

1,567

12.3

%

4,698

3,705

26.8

%

Interest income - tax equivalent

155,404

150,787

3.1

%

464,625

390,658

18.9

%

Interest expense

32,110

25,735

24.8

%

94,575

63,677

48.5

%

Net interest income - tax equivalent

$

123,294

$

125,052

(1.4)

%

$

370,050

$

326,981

13.2

%

Net interest margin

3.91

%

4.06

%

3.98

%

4.01

%

Net interest margin (fully tax equivalent) (1)

3.96

%

4.12

%

4.03

%

4.06

%

Full-time equivalent employees

2,064

2,028

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2019

Third

Second

First

Full

% Change

Quarter

Quarter

Quarter

Year

Linked Qtr.

Interest income

Loans and leases, including fees

$

126,786

$

126,365

$

123,056

$

376,207

0.3

%

Investment securities

Taxable

22,180

23,616

24,235

70,031

(6.1)

%

Tax-exempt

4,457

4,336

4,258

13,051

2.8

%

Total investment securities interest

26,637

27,952

28,493

83,082

(4.7)

%

Other earning assets

222

206

210

638

7.8

%

Total interest income

153,645

154,523

151,759

459,927

(0.6)

%

Interest expense

Deposits

20,151

20,612

19,243

60,006

(2.2)

%

Short-term borrowings

7,199

6,646

5,960

19,805

8.3

%

Long-term borrowings

4,760

4,963

5,041

14,764

(4.1)

%

Total interest expense

32,110

32,221

30,244

94,575

(0.3)

%

Net interest income

121,535

122,302

121,515

365,352

(0.6)

%

Provision for loan and lease losses

5,228

6,658

14,083

25,969

(21.5)

%

Net interest income after provision for loan and lease losses

116,307

115,644

107,432

339,383

0.6

%

Noninterest income

Service charges on deposit accounts

9,874

9,819

8,903

28,596

0.6

%

Trust and wealth management fees

3,718

3,943

4,070

11,731

(5.7)

%

Bankcard income

3,316

6,497

5,586

15,399

(49.0)

%

Client derivative fees

4,859

4,905

1,704

11,468

(0.9)

%

Foreign exchange income

1,708

17

0

1,725

N/M

Net gains from sales of loans

4,806

3,432

1,890

10,128

40.0

%

Net gains (losses) on sale of investment securities

105

(37)

(178)

(110)

383.8

%

Other

4,754

6,062

4,852

15,668

(21.6)

%

Total noninterest income

33,140

34,638

26,827

94,605

(4.3)

%

Noninterest expenses

Salaries and employee benefits

53,212

53,985

47,912

155,109

(1.4)

%

Net occupancy

5,509

5,596

6,630

17,735

(1.6)

%

Furniture and equipment

4,120

4,222

3,416

11,758

(2.4)

%

Data processing

5,774

4,984

5,127

15,885

15.9

%

Marketing

1,346

1,976

1,606

4,928

(31.9)

%

Communication

910

747

728

2,385

21.8

%

Professional services

4,771

2,039

2,252

9,062

134.0

%

State intangible tax

1,445

1,307

1,310

4,062

10.6

%

FDIC assessments

(1,097)

1,065

950

918

(203.0)

%

Intangible amortization

2,432

2,044

2,045

6,521

19.0

%

Other

7,804

6,413

6,523

20,740

21.7

%

Total noninterest expenses

86,226

84,378

78,499

249,103

2.2

%

Income before income taxes

63,221

65,904

55,760

184,885

(4.1)

%

Income tax expense

12,365

13,201

9,921

35,487

(6.3)

%

Net income

$

50,856

$

52,703

$

45,839

$

149,398

(3.5)

%

ADDITIONAL DATA

Net earnings per share - basic

$

0.52

$

0.54

$

0.47

$

1.52

Net earnings per share - diluted

$

0.51

$

0.53

$

0.47

$

1.51

Dividends declared per share

$

0.23

$

0.22

$

0.22

$

0.67

Return on average assets

1.41

%

1.50

%

1.33

%

1.41

%

Return on average shareholders' equity

9.13

%

9.85

%

8.88

%

9.29

%

Interest income

$

153,645

$

154.523

$

151,759

$

459,927

(0.6)

%

Tax equivalent adjustment

1,759

1.416

1,523

4,698

24.2

%

Interest income - tax equivalent

155,404

155.939

153,282

464,625

(0.3)

%

Interest expense

32,110

32.221

30,244

94,575

(0.3)

%

Net interest income - tax equivalent

$

123,294

$

123.718

$

123,038

$

370,050

(0.3)

%

Net interest margin

3.91

%

3.99

%

4.05

%

3.98

%

Net interest margin (fully tax equivalent) (1)

3.96

%

4.04

%

4.10

%

4.03

%

Full-time equivalent employees

2,064

2,076

2,087

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2018

Fourth

Third

Second

First

Full

Quarter

Quarter

Quarter

Quarter

Year

Interest income

Loans and leases, including fees

$

126,580

$

123,397

$

122,290

$

74,920

$

447,187

Investment securities

Taxable

22,761

21,801

20,844

13,670

79,076

Tax-exempt

3,896

3,807

4,068

1,657

13,428

Total investment securities interest

26,657

25,608

24,912

15,327

92,504

Other earning assets

192

215

177

107

691

Total interest income

153,429

149,220

147,379

90,354

540,382

Interest expense

Deposits

17,198

14,672

14,794

10,298

56,962

Short-term borrowings

5,186

6,052

4,132

2,663

18,033

Long-term borrowings

5,086

5,011

4,474

1,581

16,152

Total interest expense

27,470

25,735

23,400

14,542

91,147

Net interest income

125,959

123,485

123,979

75,812

449,235

Provision for loan and lease losses

5,310

3,238

3,735

2,303

14,586

Net interest income after provision for loan and lease losses

120,649

120,247

120,244

73,509

434,649

Noninterest income

Service charges on deposit accounts

10,185

10,316

9,568

5,039

35,108

Trust and wealth management fees

3,703

3,728

3,697

3,954

15,082

Bankcard income

6,247

5,261

5,343

3,394

20,245

Client derivative fees

1,433

3,029

1,463

1,757

7,682

Net gains from sales of loans

1,428

1,739

2,316

588

6,071

Net gains on sale of investment securities

36

(167)

(30)

0

(161)

Other

6,472

4,778

5,899

2,206

19,355

Total noninterest income

29,504

28,684

28,256

16,938

103,382

Noninterest expenses

Salaries and employee benefits

51,505

50,852

55,531

31,102

188,990

Net occupancy

6,322

6,765

6,631

4,497

24,215

Furniture and equipment

3,498

4,072

5,298

2,040

14,908

Data processing

5,599

4,502

14,304

3,672

28,077

Marketing

1,651

2,502

2,644

801

7,598

Communication

805

785

1,118

459

3,167

Professional services

1,794

2,621

5,659

2,198

12,272

State intangible tax

1,086

1,223

1,078

765

4,152

FDIC assessments

1,018

734

1,323

894

3,969

Intangible amortization

2,229

2,486

2,364

280

7,359

Other

7,845

8,873

6,805

5,580

29,103

Total noninterest expenses

83,352

85,415

102,755

52,288

323,810

Income before income taxes

66,801

63,516

45,745

38,159

214,221

Income tax expense (benefit)

11,787

12,859

9,327

7,653

41,626

Net income

$

55,014

$

50,657

$

36,418

$

30,506

$

172,595

ADDITIONAL DATA

Net earnings per share - basic

$

0.56

$

0.52

$

0.37

$

0.49

$

1.95

Net earnings per share - diluted

$

0.56

$

0.51

$

0.37

$

0.49

$

1.93

Dividends declared per share

$

0.20

$

0.20

$

0.19

$

0.19

$

0.78

Return on average assets

1.59

%

1.45

%

1.05

%

1.40

%

1.37

%

Return on average shareholders' equity

10.68

%

9.94

%

7.36

%

13.31

%

9.85

%

Interest income

$

153,429

$

149,220

$

147,379

$

90,354

$

540,382

Tax equivalent adjustment

1,442

1,567

1,420

718

5,147

Interest income - tax equivalent

154,871

150,787

148,799

91,072

545,529

Interest expense

27,470

25,735

23,400

14,542

91,147

Net interest income - tax equivalent

$

127,401

$

125,052

$

125,399

$

76,530

$

454,382

Net interest margin

4.16

%

4.06

%

4.10

%

3.80

%

4.05

%

Net interest margin (fully tax equivalent) (1)

4.21

%

4.12

%

4.15

%

3.84

%

4.10

%

Full-time equivalent employees

2,073

2,028

2,118

1,289

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

% Change

% Change

2019

2019

2019

2018

2018

Linked Qtr.

Comp Qtr.

ASSETS

Cash and due from banks

$

242,482

$

169,694

$

169,004

$

236,221

$

193,288

42.9

%

25.5

%

Interest-bearing deposits with other banks

39,669

101,668

50,224

37,738

28,989

(61.0)

%

36.8

%

Investment securities available-for-sale

2,850,502

3,152,970

3,113,811

2,779,255

2,626,726

(9.6)

%

8.5

%

Investment securities held-to-maturity

148,778

154,327

158,305

429,328

434,369

(3.6)

%

(65.7)

%

Other investments

124,965

127,439

115,731

115,660

115,757

(1.9)

%

8.0

%

Loans held for sale

23,528

20,244

8,217

4,372

13,277

16.2

%

77.2

%

Loans and leases

Commercial and industrial

2,470,017

2,547,997

2,543,427

2,514,661

2,426,590

(3.1)

%

1.8

%

Lease financing

92,616

90,638

95,573

93,415

95,317

2.2

%

(2.8)

%

Construction real estate

515,960

497,683

458,113

548,935

565,077

3.7

%

(8.7)

%

Commercial real estate

4,015,908

3,903,654

3,802,179

3,754,681

3,868,143

2.9

%

3.8

%

Residential real estate

1,055,007

1,015,820

975,120

955,646

932,962

3.9

%

13.1

%

Home equity

776,885

787,139

797,118

817,282

816,133

(1.3)

%

(4.8)

%

Installment

88,275

89,149

90,689

93,212

97,413

(1.0)

%

(9.4)

%

Credit card

49,010

48,706

46,982

46,382

45,741

0.6

%

7.1

%

Total loans

9,063,678

8,980,786

8,809,201

8,824,214

8,847,376

0.9

%

2.4

%

Less:

Allowance for loan and lease losses

56,552

61,549

56,722

56,542

57,715

(8.1)

%

(2.0)

%

Net loans

9,007,126

8,919,237

8,752,479

8,767,672

8,789,661

1.0

%

2.5

%

Premises and equipment

213,681

211,313

210,676

215,652

219,940

1.1

%

(2.8)

%

Goodwill

937,689

879,727

879,727

880,251

881,033

6.6

%

6.4

%

Other intangibles

79,506

36,349

38,571

40,805

43,356

118.7

%

83.4

%

Accrued interest and other assets

812,519

664,695

577,518

479,706

496,271

22.2

%

63.7

%

Total Assets

$

14,480,445

$

14,437,663

$

14,074,263

$

13,986,660

$

13,842,667

0.3

%

4.6

%

LIABILITIES

Deposits

Interest-bearing demand

$

2,316,301

$

2,332,692

$

2,235,036

$

2,307,071

$

2,284,271

(0.7)

%

1.4

%

Savings

2,924,200

2,953,114

3,100,894

3,167,325

3,134,944

(1.0)

%

(6.7)

%

Time

2,308,617

2,321,908

2,309,810

2,173,564

1,957,574

(0.6)

%

17.9

%

Total interest-bearing deposits

7,549,118

7,607,714

7,645,740

7,647,960

7,376,789

(0.8)

%

2.3

%

Noninterest-bearing

2,534,739

2,501,290

2,488,157

2,492,434

2,375,845

1.3

%

6.7

%

Total deposits

10,083,857

10,109,004

10,133,897

10,140,394

9,752,634

(0.2)

%

3.4

%

Federal funds purchased and securities sold

under agreements to repurchase

85,286

260,621

95,015

183,591

123,452

(67.3)

%

(30.9)

%

FHLB short-term borrowings

1,128,900

1,052,700

952,400

857,100

1,170,800

7.2

%

(3.6)

%

Total short-term borrowings

1,214,186

1,313,321

1,047,415

1,040,691

1,294,252

(7.5)

%

(6.2)

%

Long-term debt

498,778

547,042

546,423

570,739

570,037

(8.8)

%

(12.5)

%

Total borrowed funds

1,712,964

1,860,363

1,593,838

1,611,430

1,864,289

(7.9)

%

(8.1)

%

Accrued interest and other liabilities

422,311

280,107

216,109

156,587

190,224

50.8

%

122.0

%

Total Liabilities

12,219,132

12,249,474

11,943,844

11,908,411

11,807,147

(0.2)

%

3.5

%

SHAREHOLDERS' EQUITY

Common stock

1,639,333

1,623,699

1,622,554

1,633,256

1,633,828

1.0

%

0.3

%

Retained earnings

685,368

657,730

626,408

600,014

564,545

4.2

%

21.4

%

Accumulated other comprehensive income (loss)

15,450

5,193

(19,635)

(44,408)

(52,897)

197.5

%

(129.2)

%

Treasury stock, at cost

(78,838)

(98,433)

(98,908)

(110,613)

(109,956)

(19.9)

%

(28.3)

%

Total Shareholders' Equity

2,261,313

2,188,189

2,130,419

2,078,249

2,035,520

3.3

%

11.1

%

Total Liabilities and Shareholders' Equity

$

14,480,445

$

14,437,663

$

14,074,263

$

13,986,660

$

13,842,667

0.3

%

4.6

%

 

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Quarterly Averages

Year-to-Date Averages

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

September 30,

2019

2019

2019

2018

2018

2019

2018

ASSETS

Cash and due from banks

$

191,000

$

173,278

$

181,695

$

213,927

$

199,843

$

182,025

$

180,561

Federal funds sold

0

0

0

0

0

0

262

Interest-bearing deposits with other banks

38,569

33,255

34,709

32,013

39,873

35,525

31,854

Investment securities

3,290,666

3,408,994

3,355,732

3,204,758

3,168,044

3,351,559

2,793,510

Loans held for sale

18,197

13,258

6,392

10,411

15,270

12,659

12,990

Loans and leases

Commercial and industrial

2,509,782

2,533,981

2,509,274

2,402,296

2,392,229

2,517,681

2,238,878

Lease financing

94,858

94,458

91,043

94,111

94,030

93,467

91,765

Construction real estate

509,742

457,962

496,153

567,086

570,125

488,002

544,295

Commercial real estate

3,925,028

3,834,404

3,762,314

3,793,376

3,887,748

3,841,178

3,440,811

Residential real estate

1,035,975

989,923

961,584

941,047

918,361

996,100

773,941

Home equity

781,340

789,087

807,768

813,779

822,834

792,635

712,944

Installment

88,760

89,778

91,270

95,779

99,907

89,927

80,289

Credit card

50,410

49,811

47,512

48,417

48,206

49,255

47,329

Total loans

8,995,895

8,839,404

8,766,918

8,755,891

8,833,440

8,868,245

7,930,252

Less:

Allowance for loan and lease losses

61,911

58,335

57,088

58,216

55,877

59,129

55,407

Net loans

8,933,984

8,781,069

8,709,830

8,697,675

8,777,563

8,809,116

7,874,845

Premises and equipment

215,671

211,714

213,208

218,430

222,718

213,540

193,424

Goodwill

899,888

879,726

878,541

878,669

882,917

886,130

659,213

Other intangibles

51,365

37,666

39,900

42,305

43,830

43,019

30,776

Accrued interest and other assets

681,174

563,773

532,544

470,770

472,617

593,042

443,923

Total Assets

$

14,320,514

$

14,102,733

$

13,952,551

$

13,768,958

$

13,822,675

$

14,126,615

$

12,221,358

LIABILITIES

Deposits

Interest-bearing demand

$

2,325,405

$

2,334,322

$

2,269,948

$

2,342,528

$

2,334,305

$

2,310,095

$

2,111,051

Savings

2,945,076

3,057,100

3,115,557

3,156,789

3,149,871

3,038,620

2,934,770

Time

2,234,227

2,220,724

2,224,587

2,073,752

2,014,936

2,226,548

1,893,200

Total interest-bearing deposits

7,504,708

7,612,146

7,610,092

7,573,069

7,499,112

7,575,263

6,939,021

Noninterest-bearing

2,513,458

2,484,214

2,457,587

2,476,773

2,388,976

2,485,291

2,129,924

Total deposits

10,018,166

10,096,360

10,067,679

10,049,842

9,888,088

10,060,554

9,068,945

Federal funds purchased and securities sold

under agreements to repurchase

185,156

126,872

103,147

65,805

112,308

138,692

94,438

FHLB short-term borrowings

1,112,091

982,993

913,974

873,533

1,076,106

1,003,745

855,715

Total short-term borrowings

1,297,247

1,109,865

1,017,121

939,338

1,188,414

1,142,437

950,153

Long-term debt

519,736

546,705

569,947

570,304

560,001

545,279

394,172

Total borrowed funds

1,816,983

1,656,570

1,587,068

1,509,642

1,748,415

1,687,716

1,344,325

Accrued interest and other liabilities

275,038

202,806

203,570

166,590

164,772

227,400

153,766

Total Liabilities

12,110,187

11,955,736

11,858,317

11,726,074

11,801,275

11,975,670

10,567,036

SHAREHOLDERS' EQUITY

Common stock

1,629,286

1,622,994

1,625,228

1,632,361

1,633,129

1,625,851

1,283,421

Retained earnings

662,899

635,629

610,737

576,145

542,835

636,613

521,320

Accumulated other comprehensive loss

11,985

(12,889)

(39,796)

(55,161)

(44,505)

(13,377)

(39,010)

Treasury stock, at cost

(93,843)

(98,737)

(101,935)

(110,461)

(110,059)

(98,142)

(111,409)

Total Shareholders' Equity

2,210,327

2,146,997

2,094,234

2,042,884

2,021,400

2,150,945

1,654,322

Total Liabilities and Shareholders' Equity

$

14,320,514

$

14,102,733

$

13,952,551

$

13,768,958

$

13,822,675

$

14,126,615

$

12,221,358

 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)

Quarterly Averages

Year-to-Date Averages

September 30, 2019

June 30, 2019

September 30, 2018

September 30, 2019

September 30, 2018

Balance

Yield

Balance

Yield

Balance

Yield

Balance

Yield

Balance

Yield

Earning assets

Investments:

Investment securities

$

3,290,666

3.21

%

$

3,408,994

3.29

%

$

3,168,044

3.21

%

$

3,351,559

3.31

%

$

2,793,510

3.15

%

Interest-bearing deposits with other banks

38,569

2.28

%

33,255

2.48

%

39,873

2.14

%

35,525

2.40

%

32,116

2.08

%

Gross loans (1)

9,014,092

5.58

%

8,852,662

5.73

%

8,848,710

5.53

%

8,880,904

5.66

%

7,943,737

5.40

%

Total earning assets

12,343,327

4.94

%

12,294,911

5.04

%

12,056,627

4.91

%

12,267,988

5.01

%

10,769,363

4.80

%

Nonearning assets

Allowance for loan and lease losses

(61,911)

(58,335)

(55,877)

(59,129)

(55,407)

Cash and due from banks

191,000

173,278

199,843

182,025

180,561

Accrued interest and other assets

1,848,098

1,692,879

1,622,082

1,735,731

1,326,841

Total assets

$

14,320,514

$

14,102,733

$

13,822,675

$

14,126,615

$

12,221,358

Interest-bearing liabilities

Deposits:

Interest-bearing demand

$

2,325,405

0.56

%

$

2,334,322

0.60

%

$

2,334,305

0.34

%

$

2,310,095

0.55

%

$

2,111,051

0.36

%

Savings

2,945,076

0.69

%

3,057,100

0.78

%

3,149,871

0.59

%

3,038,620

0.74

%

2,934,770

0.58

%

Time

2,234,227

2.09

%

2,220,724

2.02

%

2,014,936

1.58

%

2,226,548

2.02

%

1,893,200

1.51

%

Total interest-bearing deposits

7,504,708

1.07

%

7,612,146

1.09

%

7,499,112

0.78

%

7,575,263

1.06

%

6,939,021

0.77

%

Borrowed funds

Short-term borrowings

1,297,247

2.20

%

1,109,865

2.40

%

1,188,414

2.02

%

1,142,437

2.32

%

950,153

1.81

%

Long-term debt

519,736

3.63

%

546,705

3.64

%

560,001

3.55

%

545,279

3.62

%

394,172

3.75

%

Total borrowed funds

1,816,983

2.61

%

1,656,570

2.81

%

1,748,415

2.51

%

1,687,716

2.74

%

1,344,325

2.38

%

Total interest-bearing liabilities

9,321,691

1.37

%

9,268,716

1.39

%

9,247,527

1.10

%

9,262,979

1.37

%

8,283,346

1.03

%

Noninterest-bearing liabilities

Noninterest-bearing demand deposits

2,513,458

2,484,214

2,388,976

2,485,291

2,129,924

Other liabilities

275,038

202,806

164,772

227,400

153,766

Shareholders' equity

2,210,327

2,146,997

2,021,400

2,150,945

1,654,322

Total liabilities & shareholders' equity

$

14,320,514

$

14,102,733

$

13,822,675

$

14,126,615

$

12,221,358

Net interest income

$

121,535

$

122,302

$

123,485

$

365,352

$

323,276

Net interest spread

3.57

%

3.65

%

3.81

%

3.64

%

3.77

%

Net interest margin

3.91

%

3.99

%

4.06

%

3.98

%

4.01

%

Tax equivalent adjustment

0.05

%

0.05

%

0.06

%

0.05

%

0.05

%

Net interest margin (fully tax equivalent)

3.96

%

4.04

%

4.12

%

4.03

%

4.06

%

(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

$

(657)

$

(658)

$

(1,315)

$

36

$

993

$

1,029

$

3,401

$

13,834

$

17,235

Interest-bearing deposits with other banks

(17)

33

16

15

(8)

7

78

61

139

Gross loans (2)

(3,203)

3,624

421

1,063

2,326

3,389

15,900

39,700

55,600

Total earning assets

(3,877)

2,999

(878)

1,114

3,311

4,425

19,379

53,595

72,974

Interest-bearing liabilities

Total interest-bearing deposits

$

(395)

$

(66)

$

(461)

$

5,464

$

15

$

5,479

$

15,202

$

5,040

$

20,242

Borrowed funds

Short-term borrowings

(554)

1,107

553

543

604

1,147

3,625

3,333

6,958

Long-term debt

(10)

(193)

(203)

118

(369)

(251)

(393)

4,091

3,698

Total borrowed funds

(564)

914

350

661

235

896

3,232

7,424

10,656

Total interest-bearing liabilities

(959)

848

(111)

6,125

250

6,375

18,434

12,464

30,898

Net interest income (1)

$

(2,918)

$

2,151

$

(767)

$

(5,011)

$

3,061

$

(1,950)

$

945

$

41,131

$

42,076

(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,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Sep. 30,

Sep. 30,

2019

2019

2019

2018

2018

2019

2018

ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY

Balance at beginning of period

$

61,549

$

56,722

$

56,542

$

57,715

$

54,076

$

56,542

$

54,021

Provision for loan and lease losses

5,228

6,658

14,083

5,310

3,238

25,969

9,276

Gross charge-offs

Commercial and industrial

9,556

1,873

12,328

6,060

232

23,757

5,473

Lease financing

0

0

100

0

0

100

0

Construction real estate

0

0

0

0

0

0

0

Commercial real estate

535

86

1,214

1,679

902

1,835

3,156

Residential real estate

278

150

82

80

145

510

342

Home equity

627

689

468

747

351

1,784

978

Installment

65

78

49

158

43

192

277

Credit card

598

289

341

392

390

1,228

1,328

Total gross charge-offs

11,659

3,165

14,582

9,116

2,063

29,406

11,554

Recoveries

Commercial and industrial

556

291

240

485

627

1,087

1,581

Lease financing

0

0

0

0

0

0

1

Construction real estate

0

5

63

0

146

68

146

Commercial real estate

347

254

73

1,681

786

674

2,425

Residential real estate

64

101

36

44

71

201

167

Home equity

335

572

185

274

419

1,092

1,035

Installment

93

61

48

94

351

202

481

Credit card

39

50

34

55

64

123

136

Total recoveries

1,434

1,334

679

2,633

2,464

3,447

5,972

Total net charge-offs

10,225

1,831

13,903

6,483

(401)

25,959

5,582

Ending allowance for loan and lease losses

$

56,552

$

61,549

$

56,722

$

56,542

$

57,715

$

56,552

$

57,715

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

Commercial and industrial

1.42

%

0.25

%

1.95

%

0.92

%

(0.07)

%

1.20

%

0.23

%

Lease financing

0.00

%

0.00

%

0.45

%

0.00

%

0.00

%

0.14

%

0.00

%

Construction real estate

0.00

%

0.00

%

(0.05)

%

0.00

%

(0.10)

%

(0.02)

%

(0.04)

%

Commercial real estate

0.02

%

(0.02)

%

0.12

%

0.00

%

0.01

%

0.04

%

0.03

%

Residential real estate

0.08

%

0.02

%

0.02

%

0.02

%

0.03

%

0.04

%

0.03

%

Home equity

0.15

%

0.06

%

0.14

%

0.23

%

(0.03)

%

0.12

%

(0.01)

%

Installment

(0.13)

%

0.08

%

0.00

%

0.27

%

(1.22)

%

(0.01)

%

(0.34)

%

Credit card

4.40

%

1.92

%

2.62

%

2.76

%

2.68

%

3.00

%

3.37

%

Total net charge-offs

0.45

%

0.08

%

0.64

%

0.29

%

(0.02)

%

0.39

%

0.09

%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

Nonaccrual loans (1)

Commercial and industrial

$

28,358

$

18,502

$

19,263

$

30,925

$

4,310

$

28,358

$

4,310

Lease financing

284

295

301

22

0

284

0

Construction real estate

5

6

7

9

10

5

10

Commercial real estate

14,889

15,981

21,082

20,500

20,338

14,889

20,338

Residential real estate

11,655

11,627

13,052

13,495

11,365

11,655

11,365

Home equity

5,427

4,745

5,581

5,580

6,018

5,427

6,018

Installment

75

195

170

169

327

75

327

Nonaccrual loans

60,693

51,351

59,456

70,700

42,368

60,693

42,368

Accruing troubled debt restructurings (TDRs)

18,450

37,420

22,817

16,109

20,313

18,450

20,313

Total nonperforming loans

79,143

88,771

82,273

86,809

62,681

79,143

62,681

Other real estate owned (OREO)

1,613

1,421

1,665

1,401

1,918

1,613

1,918

Total nonperforming assets

80,756

90,192

83,938

88,210

64,599

80,756

64,599

Accruing loans past due 90 days or more

287

107

178

63

144

287

144

Total underperforming assets

$

81,043

$

90,299

$

84,116

$

88,273

$

64,743

$

81,043

$

64,743

Total classified assets

$

132,500

$

147,753

$

142,014

$

131,668

$

138,868

$

132,500

$

138,868

CREDIT QUALITY RATIOS

Allowance for loan and lease losses to

Nonaccrual loans

93.18

%

119.86

%

95.40

%

79.97

%

136.22

%

93.18

%

136.22

%

Nonperforming loans

71.46

%

69.33

%

68.94

%

65.13

%

92.08

%

71.46

%

92.08

%

Total ending loans

0.62

%

0.69

%

0.64

%

0.64

%

0.65

%

0.62

%

0.65

%

Nonperforming loans to total loans

0.87

%

0.99

%

0.93

%

0.98

%

0.71

%

0.87

%

0.71

%

Nonperforming assets to

Ending loans, plus OREO

0.89

%

1.00

%

0.95

%

1.00

%

0.73

%

0.89

%

0.73

%

Total assets

0.56

%

0.62

%

0.60

%

0.63

%

0.47

%

0.56

%

0.47

%

Nonperforming assets, excluding accruing TDRs to

Ending loans, plus OREO

0.69

%

0.59

%

0.69

%

0.82

%

0.50

%

0.69

%

0.50

%

Total assets

0.43

%

0.37

%

0.43

%

0.52

%

0.32

%

0.43

%

0.32

%

Classified assets to total assets

0.92

%

1.02

%

1.01

%

0.94

%

1.00

%

0.92

%

1.00

%

(1) Nonaccrual loans include nonaccrual TDRs of $21.5 million, $11.0 million, $13.1 million, $22.4 million, and $4.7 million, as of September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.

 

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

Nine months ended,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Sep. 30,

Sep. 30,

2019

2019

2019

2018

2018

2019

2018

PER COMMON SHARE

Market Price

High

$

25.49

$

25.80

$

28.56

$

29.58

$

32.35

$

28.56

$

33.55

Low

$

22.37

$

22.16

$

23.02

$

22.40

$

29.40

$

22.16

$

26.40

Close

$

24.48

$

24.22

$

24.06

$

23.72

$

29.70

$

24.48

$

29.70

Average shares outstanding - basic

98,517,025

98,083,799

97,926,088

97,424,839

97,411,201

98,177,802

85,602,116

Average shares outstanding - diluted

99,077,723

98,648,384

98,436,311

98,468,237

98,484,228

98,723,173

86,639,927

Ending shares outstanding

100,094,819

98,647,690

98,613,872

97,894,286

97,914,526

100,094,819

97,914,526

Total shareholders' equity

$

2,261,313

$

2,188,189

$

2,130,419

$

2,078,249

$

2,035,520

$

2,261,313

$

2,035,520

REGULATORY CAPITAL

Preliminary

Preliminary

Common equity tier 1 capital

$

1,253,803

$

1,281,406

$

1,246,004

$

1,215,613

$

1,177,630

$

1,253,803

$

1,177,630

Common equity tier 1 capital ratio

11.53

%

12.00

%

12.03

%

11.87

%

11.52

%

11.53

%

11.52

%

Tier 1 capital

$

1,296,399

$

1,323,905

$

1,287,757

$

1,257,366

$

1,219,383

$

1,296,399

$

1,219,383

Tier 1 ratio

11.93

%

12.40

%

12.43

%

12.28

%

11.93

%

11.93

%

11.93

%

Total capital

$

1,482,708

$

1,515,382

$

1,474,723

$

1,444,146

$

1,407,252

$

1,482,708

$

1,407,252

Total capital ratio

13.64

%

14.20

%

14.24

%

14.10

%

13.77

%

13.64

%

13.77

%

Total capital in excess of minimum requirement

$

341,261

$

394,571

$

387,048

$

432,832

$

397,783

$

341,261

$

397,783

Total risk-weighted assets

$

10,870,923

$

10,674,393

$

10,358,805

$

10,241,159

$

10,222,466

$

10,870,923

$

10,222,466

Leverage ratio

9.75

%

10.02

%

9.84

%

9.71

%

9.41

%

9.75

%

9.41

%

OTHER CAPITAL RATIOS

Ending shareholders' equity to ending assets

15.62

%

15.16

%

15.14

%

14.86

%

14.70

%

15.62

%

14.70

%

Ending tangible shareholders' equity to ending tangible assets

9.17

%

9.34

%

9.15

%

8.79

%

8.53

%

9.17

%

8.53

%

Average shareholders' equity to average assets

15.43

%

15.22

%

15.01

%

14.84

%

14.62

%

15.23

%

13.54

%

Average tangible shareholders' equity to average tangible assets

9.35

%

9.26

%

8.95

%

8.66

%

8.42

%

9.19

%

8.31

%

REPURCHASE PROGRAM (1)

Shares repurchased

1,143,494

0

0

0

0

1,143,494

0

Average share repurchase price

$

23.94

N/A

N/A

N/A

N/A

$

23.94

N/A

Total cost of shares repurchased

$

27,372

N/A

N/A

N/A

N/A

$

27,372

N/A

(1) Represents share repurchases as part of publicly announced plans.

N/A = Not applicable

Cision View original content:http://www.prnewswire.com/news-releases/first-financial-bancorp-announces-third-quarter-financial-results-300940856.html

SOURCE First Financial Bancorp.


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