EPS Forecast
Revenue Forecast
EX-99.1
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a8k4q19earningsrelease99-1.htm
EXHIBIT 99.1
Exhibit
Exhibit 99.1
First Financial Bancorp Announces Fourth Quarter and
Full Year 2019 Financial Results
• | Fourth Quarter 2019 Earnings per Diluted Share of $0.49; $0.52 on an Adjusted Basis |
• | 32.6% Decline in Classified Assets |
• | 6.0% Loan Growth on an Annualized Basis |
• | 8.1% Average Deposit Growth on an Annualized Basis |
• | 3.89% Fully Tax Equivalent Net Interest Margin |
Cincinnati, Ohio - January 23, 2020 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the fourth quarter 2019.
For the three months ended December 31, 2019, the Company reported net income of $48.7 million, or $0.49 per diluted common share. These results compare to net income of $50.9 million, or $0.51 per diluted common share, for the third quarter of 2019 and $55.0 million, or $0.56 per diluted common share, for the fourth quarter of 2018. For the twelve months ended December 31, 2019, First Financial had earnings per diluted common share of $2.00 compared to $1.93 for the same period in 2018.
Return on average assets for the fourth quarter of 2019 was 1.34% while return on average tangible common equity was 15.84%. These compare to returns on average assets of 1.41% and 1.59%, and returns on average tangible common equity of 16.15% and 19.63%, in the third quarter of 2019 and the fourth quarter of 2018, respectively.
Fourth quarter 2019 highlights include:
• | After adjustments(1) for merger-related and nonrecurring items: |
◦ | Net income of $0.52 per diluted common share |
◦ | 1.41% return on average assets; 16.73% return on average tangible common equity |
• | Adjustments to net income include: |
◦ | $0.7 million of severance and other merger related costs |
◦ | $2.9 million historic tax credit investment write-down; offset by impact to income taxes |
◦ | $1.7 million of other nonrecurring costs such as branch consolidation costs |
◦ | $0.7 million of taxes on merger-related executive compensation |
• | Loan balances grew 6.0% on an annualized basis |
◦ | $138.0 million increase compared to the linked quarter driven by commercial real estate |
• | Average deposit balances grew 8.1% on an annualized basis |
◦ | Noninterest bearing demand deposits grew 19.8% on an annualized basis |
• | Net interest margin of 3.89% on a fully tax-equivalent basis(1) |
◦ | 7 basis point reduction from the linked quarter |
◦ | Impact of lower interest rates on asset yields partially offset by funding cost reductions and favorable shift in funding mix |
• | Noninterest income of $36.8 million |
◦ | Positively impacted by full quarter impact of Bannockburn acquisition, strong mortgage banking activity and client derivative fees |
____________________________________________________________________________________________(1) Financial information in this release that is described as “adjusted” or that is presented on a fully tax equivalent basis is non-GAAP. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
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• | Noninterest expenses of $93.1 million, or $87.8 million as adjusted(1) |
◦ | Efficiency ratio of 59.8%; 56.4% as adjusted(1) |
◦ | Includes $1.7 million of additional incentive compensation due to strong operating results |
◦ | $0.4 million contribution to First Financial Foundation |
◦ | $0.8 million of additional collection expenses in fourth quarter |
• | Significant decline in nonperforming and classified asset levels; ALLL relatively flat at $57.7 million, or 0.63% of loans; Provision expense sufficient to cover net charge-offs and loan growth |
• | Strong capital ratios |
◦ | Total capital of 13.39%; Tier 1 common equity of 11.30%; Tangible common equity of 9.07% |
◦ | Tangible book value per share of $12.42 |
Archie Brown, President and Chief Executive Officer, commented, “We are very pleased to announce fourth quarter results that are highlighted by strong earnings, record loan originations, improved loan growth and a significant reduction in classified assets."
Mr. Brown continued, “A 31% increase in loan originations from the linked quarter resulted in 6.0% annualized loan growth. This was our strongest quarter to date in loan volume with originations increasing across most of our portfolios, led by Commercial Real Estate and Commercial loans. Net interest margin was once again at the high end of our expectations as our proactive funding cost management partially offset lower asset yields following the third rate cut in four months in October. Credit quality trends significantly improved as net charge-offs normalized during the period and we resolved a number of problem loans, resulting in significantly lower classified asset balances."
Mr. Brown further remarked, "The full quarter impact of the Bannockburn acquisition along with near record level client derivative fees and sustained mortgage banking volume drove noninterest income higher. Expenses were elevated during the period primarily due to the write-down of a historic tax credit investment and higher incentive compensation resulting from our strong operating results, however our adjusted efficiency ratio was in line with our stated expectations and reflects our deliberate expense management efforts."
Mr. Brown concluded, "2019 was another successful year for First Financial. The year was highlighted by record earnings, top quartile returns, shareholder-focused capital actions and the Bannockburn acquisition despite headwinds from the Fed rate cuts and increased credit costs related to one loan in our Franchise portfolio. Our success is a direct reflection of the work performed by our associates. Their resolve and dedication to delivering unparalleled service to our clients and return to our shareholders embodies our organizational values and they have worked tirelessly to establish themselves and First Financial as valued partners in our communities. Due to their continued efforts and commitment I remain confident in our ability to sustain this success into 2020 and beyond."
Full detail of the Company’s fourth quarter and full year performance is provided in the accompanying financial statements and slide presentation.
Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, January 24, 2020 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10137978. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.
Press Release and Additional Information on Website
This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company’s results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
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Forward-Looking Statement
Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.
As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; (ii) the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iii) management’s ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the possibility that any of the anticipated benefits of the Company’s merger with MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers’ performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2018, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of December 31, 2019, the Company had $14.5 billion in assets, $9.2 billion in loans, $10.2 billion in deposits and $2.2 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.9 billion in assets under management as of December 31, 2019. The Company operated 145 full service banking centers as of December 31, 2019, primarily in Ohio, Indiana and Kentucky, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.
Contact Information
Investors/Analysts Media
Jamie Anderson Tim Condron
Chief Financial Officer Marketing Communications Manager
(513) 887-5400 (513) 979-5796
InvestorRelations@bankatfirst.com media@bankatfirst.com
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Selected Financial Information
December 31, 2019
(unaudited)
Contents | Page |
Consolidated Financial Highlights | 2 |
Consolidated Statements of Income | 3 |
Consolidated Quarterly Statements of Income | 4-5 |
Consolidated Statements of Condition | 6 |
Average Consolidated Statements of Condition | 7 |
Net Interest Margin Rate / Volume Analysis | 8-9 |
Credit Quality | 10 |
Capital Adequacy | 11 |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Three Months Ended, | Twelve months ended, | ||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
RESULTS OF OPERATIONS | |||||||||||||||||||||||||||
Net income | $ | 48,677 | $ | 50,856 | $ | 52,703 | $ | 45,839 | $ | 55,014 | $ | 198,075 | $ | 172,595 | |||||||||||||
Net earnings per share - basic | $ | 0.49 | $ | 0.52 | $ | 0.54 | $ | 0.47 | $ | 0.56 | $ | 2.01 | $ | 1.95 | |||||||||||||
Net earnings per share - diluted | $ | 0.49 | $ | 0.51 | $ | 0.53 | $ | 0.47 | $ | 0.56 | $ | 2.00 | $ | 1.93 | |||||||||||||
Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.20 | $ | 0.90 | $ | 0.78 | |||||||||||||
KEY FINANCIAL RATIOS | |||||||||||||||||||||||||||
Return on average assets | 1.34 | % | 1.41 | % | 1.50 | % | 1.33 | % | 1.59 | % | 1.39 | % | 1.37 | % | |||||||||||||
Return on average shareholders' equity | 8.60 | % | 9.13 | % | 9.85 | % | 8.88 | % | 10.68 | % | 9.11 | % | 9.85 | % | |||||||||||||
Return on average tangible shareholders' equity | 15.84 | % | 16.15 | % | 17.33 | % | 15.95 | % | 19.63 | % | 16.32 | % | 17.32 | % | |||||||||||||
Net interest margin | 3.84 | % | 3.91 | % | 3.99 | % | 4.05 | % | 4.16 | % | 3.95 | % | 4.05 | % | |||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.89 | % | 3.96 | % | 4.04 | % | 4.10 | % | 4.21 | % | 4.00 | % | 4.10 | % | |||||||||||||
Ending shareholders' equity as a percent of ending assets | 15.49 | % | 15.62 | % | 15.16 | % | 15.14 | % | 14.86 | % | 15.49 | % | 14.86 | % | |||||||||||||
Ending tangible shareholders' equity as a percent of: | |||||||||||||||||||||||||||
Ending tangible assets | 9.07 | % | 9.17 | % | 9.34 | % | 9.15 | % | 8.79 | % | 9.07 | % | 8.79 | % | |||||||||||||
Risk-weighted assets | 11.09 | % | 11.34 | % | 11.82 | % | 11.61 | % | 11.20 | % | 11.09 | % | 11.20 | % | |||||||||||||
Average shareholders' equity as a percent of average assets | 15.53 | % | 15.43 | % | 15.22 | % | 15.01 | % | 14.84 | % | 15.30 | % | 13.89 | % | |||||||||||||
Average tangible shareholders' equity as a percent of | |||||||||||||||||||||||||||
average tangible assets | 9.07 | % | 9.35 | % | 9.26 | % | 8.95 | % | 8.66 | % | 9.16 | % | 8.40 | % | |||||||||||||
Book value per share | $ | 22.82 | $ | 22.59 | $ | 22.18 | $ | 21.60 | $ | 21.23 | $ | 22.82 | $ | 21.23 | |||||||||||||
Tangible book value per share | $ | 12.42 | $ | 12.33 | $ | 12.79 | $ | 12.19 | $ | 11.72 | $ | 12.42 | $ | 11.72 | |||||||||||||
Common equity tier 1 ratio (2) | 11.30 | % | 11.52 | % | 12.00 | % | 12.03 | % | 11.87 | % | 11.30 | % | 11.87 | % | |||||||||||||
Tier 1 ratio (2) | 11.69 | % | 11.91 | % | 12.40 | % | 12.43 | % | 12.28 | % | 11.69 | % | 12.28 | % | |||||||||||||
Total capital ratio (2) | 13.39 | % | 13.62 | % | 14.20 | % | 14.24 | % | 14.10 | % | 13.39 | % | 14.10 | % | |||||||||||||
Leverage ratio (2) | 9.58 | % | 9.75 | % | 10.02 | % | 9.84 | % | 9.71 | % | 9.58 | % | 9.71 | % | |||||||||||||
AVERAGE BALANCE SHEET ITEMS | |||||||||||||||||||||||||||
Loans (3) | $ | 9,149,222 | $ | 9,014,092 | $ | 8,852,662 | $ | 8,773,310 | $ | 8,766,302 | $ | 8,948,535 | $ | 8,151,068 | |||||||||||||
Investment securities | 3,102,867 | 3,290,666 | 3,408,994 | 3,355,732 | 3,204,758 | 3,288,875 | 2,897,167 | ||||||||||||||||||||
Interest-bearing deposits with other banks | 36,672 | 38,569 | 33,255 | 34,709 | 32,013 | 35,814 | 32,090 | ||||||||||||||||||||
Total earning assets | $ | 12,288,761 | $ | 12,343,327 | $ | 12,294,911 | $ | 12,163,751 | $ | 12,003,073 | $ | 12,273,224 | $ | 11,080,325 | |||||||||||||
Total assets | $ | 14,460,288 | $ | 14,320,514 | $ | 14,102,733 | $ | 13,952,551 | $ | 13,768,958 | $ | 14,210,719 | $ | 12,611,438 | |||||||||||||
Noninterest-bearing deposits | $ | 2,638,908 | $ | 2,513,458 | $ | 2,484,214 | $ | 2,457,587 | $ | 2,476,773 | $ | 2,524,011 | $ | 2,217,349 | |||||||||||||
Interest-bearing deposits | 7,583,531 | 7,504,708 | 7,612,146 | 7,610,092 | 7,573,069 | 7,577,347 | 7,098,836 | ||||||||||||||||||||
Total deposits | $ | 10,222,439 | $ | 10,018,166 | $ | 10,096,360 | $ | 10,067,679 | $ | 10,049,842 | $ | 10,101,358 | $ | 9,316,185 | |||||||||||||
Borrowings | $ | 1,613,696 | $ | 1,816,983 | $ | 1,656,570 | $ | 1,587,068 | $ | 1,509,642 | $ | 1,669,059 | $ | 1,385,994 | |||||||||||||
Shareholders' equity | $ | 2,245,107 | $ | 2,210,327 | $ | 2,146,997 | $ | 2,094,234 | $ | 2,042,884 | $ | 2,174,679 | $ | 1,752,261 | |||||||||||||
CREDIT QUALITY RATIOS | |||||||||||||||||||||||||||
Allowance to ending loans | 0.63 | % | 0.62 | % | 0.69 | % | 0.64 | % | 0.64 | % | 0.63 | % | 0.64 | % | |||||||||||||
Allowance to nonaccrual loans | 119.69 | % | 93.18 | % | 119.86 | % | 95.40 | % | 79.97 | % | 119.69 | % | 79.97 | % | |||||||||||||
Allowance to nonperforming loans | 96.73 | % | 71.46 | % | 69.33 | % | 68.94 | % | 65.13 | % | 96.73 | % | 65.13 | % | |||||||||||||
Nonperforming loans to total loans | 0.65 | % | 0.87 | % | 0.99 | % | 0.93 | % | 0.98 | % | 0.65 | % | 0.98 | % | |||||||||||||
Nonperforming assets to ending loans, plus OREO | 0.67 | % | 0.89 | % | 1.00 | % | 0.95 | % | 1.00 | % | 0.67 | % | 1.00 | % | |||||||||||||
Nonperforming assets to total assets | 0.42 | % | 0.56 | % | 0.62 | % | 0.60 | % | 0.63 | % | 0.42 | % | 0.63 | % | |||||||||||||
Classified assets to total assets | 0.62 | % | 0.92 | % | 1.02 | % | 1.01 | % | 0.94 | % | 0.62 | % | 0.94 | % | |||||||||||||
Net charge-offs to average loans (annualized) | 0.15 | % | 0.45 | % | 0.08 | % | 0.64 | % | 0.29 | % | 0.33 | % | 0.15 | % | |||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(2) December 31, 2019 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.
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FIRST FINANCIAL BANCORP. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended, | Twelve months ended, | ||||||||||||||||||||
Dec. 31, | Dec. 31, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Interest income | |||||||||||||||||||||
Loans and leases, including fees | $ | 122,802 | $ | 126,580 | (3.0 | )% | $ | 499,009 | $ | 447,187 | 11.6 | % | |||||||||
Investment securities | |||||||||||||||||||||
Taxable | 20,137 | 22,761 | (11.5 | )% | 90,168 | 79,076 | 14.0 | % | |||||||||||||
Tax-exempt | 4,545 | 3,896 | 16.7 | % | 17,596 | 13,428 | 31.0 | % | |||||||||||||
Total investment securities interest | 24,682 | 26,657 | (7.4 | )% | 107,764 | 92,504 | 16.5 | % | |||||||||||||
Other earning assets | 167 | 192 | (13.0 | )% | 805 | 691 | 16.5 | % | |||||||||||||
Total interest income | 147,651 | 153,429 | (3.8 | )% | 607,578 | 540,382 | 12.4 | % | |||||||||||||
Interest expense | |||||||||||||||||||||
Deposits | 19,026 | 17,198 | 10.6 | % | 79,032 | 56,962 | 38.7 | % | |||||||||||||
Short-term borrowings | 5,430 | 5,186 | 4.7 | % | 25,235 | 18,033 | 39.9 | % | |||||||||||||
Long-term borrowings | 4,293 | 5,086 | (15.6 | )% | 19,057 | 16,152 | 18.0 | % | |||||||||||||
Total interest expense | 28,749 | 27,470 | 4.7 | % | 123,324 | 91,147 | 35.3 | % | |||||||||||||
Net interest income | 118,902 | 125,959 | (5.6 | )% | 484,254 | 449,235 | 7.8 | % | |||||||||||||
Provision for loan and lease losses | 4,629 | 5,310 | (12.8 | )% | 30,598 | 14,586 | 109.8 | % | |||||||||||||
Net interest income after provision for loan and lease losses | 114,273 | 120,649 | (5.3 | )% | 453,656 | 434,649 | 4.4 | % | |||||||||||||
Noninterest income | |||||||||||||||||||||
Service charges on deposit accounts | 9,343 | 10,185 | (8.3 | )% | 37,939 | 35,108 | 8.1 | % | |||||||||||||
Trust and wealth management fees | 3,913 | 3,703 | 5.7 | % | 15,644 | 15,082 | 3.7 | % | |||||||||||||
Bankcard income | 3,405 | 6,247 | (45.5 | )% | 18,804 | 20,245 | (7.1 | )% | |||||||||||||
Client derivative fees | 4,194 | 1,433 | 192.7 | % | 15,662 | 7,682 | 103.9 | % | |||||||||||||
Foreign exchange income | 6,014 | 0 | 100.0 | % | 7,739 | 0 | 100.0 | % | |||||||||||||
Net gains from sales of loans | 4,723 | 1,428 | 230.7 | % | 14,851 | 6,071 | 144.6 | % | |||||||||||||
Net gains (losses) on sale of investment securities | (296 | ) | 36 | (922.2 | )% | (406 | ) | (161 | ) | (152.2 | )% | ||||||||||
Other | 5,472 | 6,472 | (15.5 | )% | 21,140 | 19,355 | 9.2 | % | |||||||||||||
Total noninterest income | 36,768 | 29,504 | 24.6 | % | 131,373 | 103,382 | 27.1 | % | |||||||||||||
Noninterest expenses | |||||||||||||||||||||
Salaries and employee benefits | 53,952 | 51,505 | 4.8 | % | 209,061 | 188,990 | 10.6 | % | |||||||||||||
Net occupancy | 6,334 | 6,322 | 0.2 | % | 24,069 | 24,215 | (0.6 | )% | |||||||||||||
Furniture and equipment | 4,145 | 3,498 | 18.5 | % | 15,903 | 14,908 | 6.7 | % | |||||||||||||
Data processing | 5,996 | 5,599 | 7.1 | % | 21,881 | 28,077 | (22.1 | )% | |||||||||||||
Marketing | 1,980 | 1,651 | 19.9 | % | 6,908 | 7,598 | (9.1 | )% | |||||||||||||
Communication | 882 | 805 | 9.6 | % | 3,267 | 3,167 | 3.2 | % | |||||||||||||
Professional services | 2,192 | 1,794 | 22.2 | % | 11,254 | 12,272 | (8.3 | )% | |||||||||||||
State intangible tax | 1,767 | 1,086 | 62.7 | % | 5,829 | 4,152 | 40.4 | % | |||||||||||||
FDIC assessments | 1,055 | 1,018 | 3.6 | % | 1,973 | 3,969 | (50.3 | )% | |||||||||||||
Intangible amortization | 3,150 | 2,229 | 41.3 | % | 9,671 | 7,359 | 31.4 | % | |||||||||||||
Other | 11,611 | 7,845 | 48.0 | % | 32,351 | 29,103 | 11.2 | % | |||||||||||||
Total noninterest expenses | 93,064 | 83,352 | 11.7 | % | 342,167 | 323,810 | 5.7 | % | |||||||||||||
Income before income taxes | 57,977 | 66,801 | (13.2 | )% | 242,862 | 214,221 | 13.4 | % | |||||||||||||
Income tax expense | 9,300 | 11,787 | (21.1 | )% | 44,787 | 41,626 | 7.6 | % | |||||||||||||
Net income | $ | 48,677 | $ | 55,014 | (11.5 | )% | $ | 198,075 | $ | 172,595 | 14.8 | % | |||||||||
ADDITIONAL DATA | |||||||||||||||||||||
Net earnings per share - basic | $ | 0.49 | $ | 0.56 | $ | 2.01 | $ | 1.95 | |||||||||||||
Net earnings per share - diluted | $ | 0.49 | $ | 0.56 | $ | 2.00 | $ | 1.93 | |||||||||||||
Dividends declared per share | $ | 0.23 | $ | 0.20 | $ | 0.90 | $ | 0.78 | |||||||||||||
Return on average assets | 1.34 | % | 1.59 | % | 1.39 | % | 1.37 | % | |||||||||||||
Return on average shareholders' equity | 8.60 | % | 10.68 | % | 9.11 | % | 9.85 | % | |||||||||||||
Interest income | $ | 147,651 | $ | 153,429 | (3.8 | )% | $ | 607,578 | $ | 540,382 | 12.4 | % | |||||||||
Tax equivalent adjustment | 1,630 | 1,442 | 13.0 | % | 6,328 | 5,147 | 22.9 | % | |||||||||||||
Interest income - tax equivalent | 149,281 | 154,871 | (3.6 | )% | 613,906 | 545,529 | 12.5 | % | |||||||||||||
Interest expense | 28,749 | 27,470 | 4.7 | % | 123,324 | 91,147 | 35.3 | % | |||||||||||||
Net interest income - tax equivalent | $ | 120,532 | $ | 127,401 | (5.4 | )% | $ | 490,582 | $ | 454,382 | 8.0 | % | |||||||||
Net interest margin | 3.84 | % | 4.16 | % | 3.95 | % | 4.05 | % | |||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.89 | % | 4.21 | % | 4.00 | % | 4.10 | % | |||||||||||||
Full-time equivalent employees | 2,065 | 2,073 | |||||||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. | |||||||||||||||||||||
3
FIRST FINANCIAL BANCORP. | ||||||||||||||||||||||
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
2019 | ||||||||||||||||||||||
Fourth | Third | Second | First | Full | % Change | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | Linked Qtr. | |||||||||||||||||
Interest income | ||||||||||||||||||||||
Loans and leases, including fees | $ | 122,802 | $ | 126,786 | $ | 126,365 | $ | 123,056 | $ | 499,009 | (3.1 | )% | ||||||||||
Investment securities | ||||||||||||||||||||||
Taxable | 20,137 | 22,180 | 23,616 | 24,235 | 90,168 | (9.2 | )% | |||||||||||||||
Tax-exempt | 4,545 | 4,457 | 4,336 | 4,258 | 17,596 | 2.0 | % | |||||||||||||||
Total investment securities interest | 24,682 | 26,637 | 27,952 | 28,493 | 107,764 | (7.3 | )% | |||||||||||||||
Other earning assets | 167 | 222 | 206 | 210 | 805 | (24.8 | )% | |||||||||||||||
Total interest income | 147,651 | 153,645 | 154,523 | 151,759 | 607,578 | (3.9 | )% | |||||||||||||||
Interest expense | ||||||||||||||||||||||
Deposits | 19,026 | 20,151 | 20,612 | 19,243 | 79,032 | (5.6 | )% | |||||||||||||||
Short-term borrowings | 5,430 | 7,199 | 6,646 | 5,960 | 25,235 | (24.6 | )% | |||||||||||||||
Long-term borrowings | 4,293 | 4,760 | 4,963 | 5,041 | 19,057 | (9.8 | )% | |||||||||||||||
Total interest expense | 28,749 | 32,110 | 32,221 | 30,244 | 123,324 | (10.5 | )% | |||||||||||||||
Net interest income | 118,902 | 121,535 | 122,302 | 121,515 | 484,254 | (2.2 | )% | |||||||||||||||
Provision for loan and lease losses | 4,629 | 5,228 | 6,658 | 14,083 | 30,598 | (11.5 | )% | |||||||||||||||
Net interest income after provision for loan and lease losses | 114,273 | 116,307 | 115,644 | 107,432 | 453,656 | (1.7 | )% | |||||||||||||||
Noninterest income | ||||||||||||||||||||||
Service charges on deposit accounts | 9,343 | 9,874 | 9,819 | 8,903 | 37,939 | (5.4 | )% | |||||||||||||||
Trust and wealth management fees | 3,913 | 3,718 | 3,943 | 4,070 | 15,644 | 5.2 | % | |||||||||||||||
Bankcard income | 3,405 | 3,316 | 6,497 | 5,586 | 18,804 | 2.7 | % | |||||||||||||||
Client derivative fees | 4,194 | 4,859 | 4,905 | 1,704 | 15,662 | (13.7 | )% | |||||||||||||||
Foreign exchange income | 6,014 | 1,708 | 17 | 0 | 7,739 | 252.1 | % | |||||||||||||||
Net gains from sales of loans | 4,723 | 4,806 | 3,432 | 1,890 | 14,851 | (1.7 | )% | |||||||||||||||
Net gains (losses) on sale of investment securities | (296 | ) | 105 | (37 | ) | (178 | ) | (406 | ) | 381.9 | % | |||||||||||
Other | 5,472 | 4,754 | 6,062 | 4,852 | 21,140 | 15.1 | % | |||||||||||||||
Total noninterest income | 36,768 | 33,140 | 34,638 | 26,827 | 131,373 | 10.9 | % | |||||||||||||||
Noninterest expenses | ||||||||||||||||||||||
Salaries and employee benefits | 53,952 | 53,212 | 53,985 | 47,912 | 209,061 | 1.4 | % | |||||||||||||||
Net occupancy | 6,334 | 5,509 | 5,596 | 6,630 | 24,069 | 15.0 | % | |||||||||||||||
Furniture and equipment | 4,145 | 4,120 | 4,222 | 3,416 | 15,903 | 0.6 | % | |||||||||||||||
Data processing | 5,996 | 5,774 | 4,984 | 5,127 | 21,881 | 3.8 | % | |||||||||||||||
Marketing | 1,980 | 1,346 | 1,976 | 1,606 | 6,908 | 47.1 | % | |||||||||||||||
Communication | 882 | 910 | 747 | 728 | 3,267 | (3.1 | )% | |||||||||||||||
Professional services | 2,192 | 4,771 | 2,039 | 2,252 | 11,254 | (54.1 | )% | |||||||||||||||
State intangible tax | 1,767 | 1,445 | 1,307 | 1,310 | 5,829 | 22.3 | % | |||||||||||||||
FDIC assessments | 1,055 | (1,097 | ) | 1,065 | 950 | 1,973 | (196.2 | )% | ||||||||||||||
Intangible amortization | 3,150 | 2,432 | 2,044 | 2,045 | 9,671 | 29.5 | % | |||||||||||||||
Other | 11,611 | 7,804 | 6,413 | 6,523 | 32,351 | 48.8 | % | |||||||||||||||
Total noninterest expenses | 93,064 | 86,226 | 84,378 | 78,499 | 342,167 | 7.9 | % | |||||||||||||||
Income before income taxes | 57,977 | 63,221 | 65,904 | 55,760 | 242,862 | (8.3 | )% | |||||||||||||||
Income tax expense | 9,300 | 12,365 | 13,201 | 9,921 | 44,787 | (24.8 | )% | |||||||||||||||
Net income | $ | 48,677 | $ | 50,856 | $ | 52,703 | $ | 45,839 | $ | 198,075 | (4.3 | )% | ||||||||||
ADDITIONAL DATA | ||||||||||||||||||||||
Net earnings per share - basic | $ | 0.49 | $ | 0.52 | $ | 0.54 | $ | 0.47 | $ | 2.01 | ||||||||||||
Net earnings per share - diluted | $ | 0.49 | $ | 0.51 | $ | 0.53 | $ | 0.47 | $ | 2.00 | ||||||||||||
Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.90 | ||||||||||||
Return on average assets | 1.34 | % | 1.41 | % | 1.50 | % | 1.33 | % | 1.39 | % | ||||||||||||
Return on average shareholders' equity | 8.60 | % | 9.13 | % | 9.85 | % | 8.88 | % | 9.11 | % | ||||||||||||
Interest income | $ | 147,651 | $ | 153,645 | $ | 154.523 | $ | 151,759 | $ | 607,578 | (3.9 | )% | ||||||||||
Tax equivalent adjustment | 1,630 | 1,759 | 1.416 | 1,523 | 6,328 | (7.3 | )% | |||||||||||||||
Interest income - tax equivalent | 149,281 | 155,404 | 155.939 | 153,282 | 613,906 | (3.9 | )% | |||||||||||||||
Interest expense | 28,749 | 32,110 | 32.221 | 30,244 | 123,324 | (10.5 | )% | |||||||||||||||
Net interest income - tax equivalent | $ | 120,532 | $ | 123,294 | $ | 123.718 | $ | 123,038 | $ | 490,582 | (2.2 | )% | ||||||||||
Net interest margin | 3.84 | % | 3.91 | % | 3.99 | % | 4.05 | % | 3.95 | % | ||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.89 | % | 3.96 | % | 4.04 | % | 4.10 | % | 4.00 | % | ||||||||||||
Full-time equivalent employees | 2,065 | 2,064 | 2,076 | 2,087 | ||||||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. | ||||||||||||||||||||||
4
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. | |||||||||||||||||||
5
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | % Change | % Change | |||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | Linked Qtr. | Comp Qtr. | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Cash and due from banks | $ | 200,691 | $ | 242,482 | $ | 169,694 | $ | 169,004 | $ | 236,221 | (17.2 | )% | (15.0 | )% | |||||||||||
Interest-bearing deposits with other banks | 56,948 | 39,669 | 101,668 | 50,224 | 37,738 | 43.6 | % | 50.9 | % | ||||||||||||||||
Investment securities available-for-sale | 2,852,084 | 2,850,502 | 3,152,970 | 3,113,811 | 2,779,255 | 0.1 | % | 2.6 | % | ||||||||||||||||
Investment securities held-to-maturity | 142,862 | 148,778 | 154,327 | 158,305 | 429,328 | (4.0 | )% | (66.7 | )% | ||||||||||||||||
Other investments | 125,020 | 124,965 | 127,439 | 115,731 | 115,660 | 0.0 | % | 8.1 | % | ||||||||||||||||
Loans held for sale | 13,680 | 23,528 | 20,244 | 8,217 | 4,372 | (41.9 | )% | 212.9 | % | ||||||||||||||||
Loans and leases | |||||||||||||||||||||||||
Commercial and industrial | 2,465,877 | 2,470,017 | 2,547,997 | 2,543,427 | 2,514,661 | (0.2 | )% | (1.9 | )% | ||||||||||||||||
Lease financing | 88,364 | 92,616 | 90,638 | 95,573 | 93,415 | (4.6 | )% | (5.4 | )% | ||||||||||||||||
Construction real estate | 493,182 | 515,960 | 497,683 | 458,113 | 548,935 | (4.4 | )% | (10.2 | )% | ||||||||||||||||
Commercial real estate | 4,194,651 | 4,015,908 | 3,903,654 | 3,802,179 | 3,754,681 | 4.5 | % | 11.7 | % | ||||||||||||||||
Residential real estate | 1,055,949 | 1,055,007 | 1,015,820 | 975,120 | 955,646 | 0.1 | % | 10.5 | % | ||||||||||||||||
Home equity | 771,869 | 776,885 | 787,139 | 797,118 | 817,282 | (0.6 | )% | (5.6 | )% | ||||||||||||||||
Installment | 82,589 | 88,275 | 89,149 | 90,689 | 93,212 | (6.4 | )% | (11.4 | )% | ||||||||||||||||
Credit card | 49,184 | 49,010 | 48,706 | 46,982 | 46,382 | 0.4 | % | 6.0 | % | ||||||||||||||||
Total loans | 9,201,665 | 9,063,678 | 8,980,786 | 8,809,201 | 8,824,214 | 1.5 | % | 4.3 | % | ||||||||||||||||
Less: | |||||||||||||||||||||||||
Allowance for loan and lease losses | 57,650 | 56,552 | 61,549 | 56,722 | 56,542 | 1.9 | % | 2.0 | % | ||||||||||||||||
Net loans | 9,144,015 | 9,007,126 | 8,919,237 | 8,752,479 | 8,767,672 | 1.5 | % | 4.3 | % | ||||||||||||||||
Premises and equipment | 214,506 | 213,681 | 211,313 | 210,676 | 215,652 | 0.4 | % | (0.5 | )% | ||||||||||||||||
Goodwill | 937,771 | 937,689 | 879,727 | 879,727 | 880,251 | 0.0 | % | 6.5 | % | ||||||||||||||||
Other intangibles | 76,201 | 79,506 | 36,349 | 38,571 | 40,805 | (4.2 | )% | 86.7 | % | ||||||||||||||||
Accrued interest and other assets | 747,847 | 812,519 | 664,695 | 577,518 | 479,706 | (8.0 | )% | 55.9 | % | ||||||||||||||||
Total Assets | $ | 14,511,625 | $ | 14,480,445 | $ | 14,437,663 | $ | 14,074,263 | $ | 13,986,660 | 0.2 | % | 3.8 | % | |||||||||||
LIABILITIES | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Interest-bearing demand | $ | 2,364,881 | $ | 2,316,301 | $ | 2,332,692 | $ | 2,235,036 | $ | 2,307,071 | 2.1 | % | 2.5 | % | |||||||||||
Savings | 2,960,979 | 2,924,200 | 2,953,114 | 3,100,894 | 3,167,325 | 1.3 | % | (6.5 | )% | ||||||||||||||||
Time | 2,240,441 | 2,308,617 | 2,321,908 | 2,309,810 | 2,173,564 | (3.0 | )% | 3.1 | % | ||||||||||||||||
Total interest-bearing deposits | 7,566,301 | 7,549,118 | 7,607,714 | 7,645,740 | 7,647,960 | 0.2 | % | (1.1 | )% | ||||||||||||||||
Noninterest-bearing | 2,643,928 | 2,534,739 | 2,501,290 | 2,488,157 | 2,492,434 | 4.3 | % | 6.1 | % | ||||||||||||||||
Total deposits | 10,210,229 | 10,083,857 | 10,109,004 | 10,133,897 | 10,140,394 | 1.3 | % | 0.7 | % | ||||||||||||||||
Federal funds purchased and securities sold | |||||||||||||||||||||||||
under agreements to repurchase | 165,181 | 85,286 | 260,621 | 95,015 | 183,591 | 93.7 | % | (10.0 | )% | ||||||||||||||||
FHLB short-term borrowings | 1,151,000 | 1,128,900 | 1,052,700 | 952,400 | 857,100 | 2.0 | % | 34.3 | % | ||||||||||||||||
Total short-term borrowings | 1,316,181 | 1,214,186 | 1,313,321 | 1,047,415 | 1,040,691 | 8.4 | % | 26.5 | % | ||||||||||||||||
Long-term debt | 414,376 | 498,778 | 547,042 | 546,423 | 570,739 | (16.9 | )% | (27.4 | )% | ||||||||||||||||
Total borrowed funds | 1,730,557 | 1,712,964 | 1,860,363 | 1,593,838 | 1,611,430 | 1.0 | % | 7.4 | % | ||||||||||||||||
Accrued interest and other liabilities | 323,134 | 422,311 | 280,107 | 216,109 | 156,587 | (23.5 | )% | 106.4 | % | ||||||||||||||||
Total Liabilities | 12,263,920 | 12,219,132 | 12,249,474 | 11,943,844 | 11,908,411 | 0.4 | % | 3.0 | % | ||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
Common stock | 1,640,771 | 1,639,333 | 1,623,699 | 1,622,554 | 1,633,256 | 0.1 | % | 0.5 | % | ||||||||||||||||
Retained earnings | 711,249 | 685,368 | 657,730 | 626,408 | 600,014 | 3.8 | % | 18.5 | % | ||||||||||||||||
Accumulated other comprehensive income (loss) | 13,323 | 15,450 | 5,193 | (19,635 | ) | (44,408 | ) | (13.8 | )% | 130.0 | % | ||||||||||||||
Treasury stock, at cost | (117,638 | ) | (78,838 | ) | (98,433 | ) | (98,908 | ) | (110,613 | ) | 49.2 | % | 6.4 | % | |||||||||||
Total Shareholders' Equity | 2,247,705 | 2,261,313 | 2,188,189 | 2,130,419 | 2,078,249 | (0.6 | )% | 8.2 | % | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 14,511,625 | $ | 14,480,445 | $ | 14,437,663 | $ | 14,074,263 | $ | 13,986,660 | 0.2 | % | 3.8 | % | |||||||||||
6
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | ||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | December 31, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Cash and due from banks | $ | 221,060 | $ | 191,000 | $ | 173,278 | $ | 181,695 | $ | 213,927 | $ | 191,864 | $ | 188,971 | |||||||||||||
Federal funds sold | 0 | 0 | 0 | 0 | 0 | 0 | 196 | ||||||||||||||||||||
Interest-bearing deposits with other banks | 36,672 | 38,569 | 33,255 | 34,709 | 32,013 | 35,814 | 31,894 | ||||||||||||||||||||
Investment securities | 3,102,867 | 3,290,666 | 3,408,994 | 3,355,732 | 3,204,758 | 3,288,875 | 2,897,167 | ||||||||||||||||||||
Loans held for sale | 21,050 | 18,197 | 13,258 | 6,392 | 10,411 | 14,774 | 12,340 | ||||||||||||||||||||
Loans and leases | |||||||||||||||||||||||||||
Commercial and industrial | 2,469,810 | 2,509,782 | 2,533,981 | 2,509,274 | 2,402,296 | 2,505,615 | 2,518,333 | ||||||||||||||||||||
Lease financing | 91,225 | 94,858 | 94,458 | 91,043 | 94,111 | 92,902 | 91,476 | ||||||||||||||||||||
Construction real estate | 501,892 | 509,742 | 457,962 | 496,153 | 567,086 | 491,503 | 540,014 | ||||||||||||||||||||
Commercial real estate | 4,102,288 | 3,925,028 | 3,834,404 | 3,762,314 | 3,793,376 | 3,906,992 | 3,310,697 | ||||||||||||||||||||
Residential real estate | 1,053,707 | 1,035,975 | 989,923 | 961,584 | 941,047 | 1,010,620 | 809,114 | ||||||||||||||||||||
Home equity | 773,119 | 781,340 | 789,087 | 807,768 | 813,779 | 787,716 | 724,926 | ||||||||||||||||||||
Installment | 85,515 | 88,760 | 89,778 | 91,270 | 95,779 | 88,815 | 95,847 | ||||||||||||||||||||
Credit card | 50,616 | 50,410 | 49,811 | 47,512 | 48,417 | 49,598 | 47,951 | ||||||||||||||||||||
Total loans | 9,128,172 | 8,995,895 | 8,839,404 | 8,766,918 | 8,755,891 | 8,933,761 | 8,138,358 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||||||
Allowance for loan and lease losses | 56,649 | 61,911 | 58,335 | 57,088 | 58,216 | 58,504 | 56,115 | ||||||||||||||||||||
Net loans | 9,071,523 | 8,933,984 | 8,781,069 | 8,709,830 | 8,697,675 | 8,875,257 | 8,082,243 | ||||||||||||||||||||
Premises and equipment | 215,171 | 215,671 | 211,714 | 213,208 | 218,430 | 213,951 | 199,727 | ||||||||||||||||||||
Goodwill | 937,710 | 899,888 | 879,726 | 878,541 | 878,669 | 899,131 | 714,528 | ||||||||||||||||||||
Other intangibles | 78,190 | 51,365 | 37,666 | 39,900 | 42,305 | 51,884 | 33,682 | ||||||||||||||||||||
Accrued interest and other assets | 776,045 | 681,174 | 563,773 | 532,544 | 470,770 | 639,169 | 450,690 | ||||||||||||||||||||
Total Assets | $ | 14,460,288 | $ | 14,320,514 | $ | 14,102,733 | $ | 13,952,551 | $ | 13,768,958 | $ | 14,210,719 | $ | 12,611,438 | |||||||||||||
LIABILITIES | |||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||
Interest-bearing demand | $ | 2,373,962 | $ | 2,325,405 | $ | 2,334,322 | $ | 2,269,948 | $ | 2,342,528 | $ | 2,326,193 | $ | 2,169,396 | |||||||||||||
Savings | 2,995,395 | 2,945,076 | 3,057,100 | 3,115,557 | 3,156,789 | 3,027,725 | 2,990,731 | ||||||||||||||||||||
Time | 2,214,174 | 2,234,227 | 2,220,724 | 2,224,587 | 2,073,752 | 2,223,429 | 1,938,709 | ||||||||||||||||||||
Total interest-bearing deposits | 7,583,531 | 7,504,708 | 7,612,146 | 7,610,092 | 7,573,069 | 7,577,347 | 7,098,836 | ||||||||||||||||||||
Noninterest-bearing | 2,638,908 | 2,513,458 | 2,484,214 | 2,457,587 | 2,476,773 | 2,524,011 | 2,217,349 | ||||||||||||||||||||
Total deposits | 10,222,439 | 10,018,166 | 10,096,360 | 10,067,679 | 10,049,842 | 10,101,358 | 9,316,185 | ||||||||||||||||||||
Federal funds purchased and securities sold | |||||||||||||||||||||||||||
under agreements to repurchase | 206,800 | 185,156 | 126,872 | 103,147 | 65,805 | 155,859 | 87,221 | ||||||||||||||||||||
FHLB short-term borrowings | 952,625 | 1,112,091 | 982,993 | 913,974 | 873,533 | 990,860 | 860,206 | ||||||||||||||||||||
Total short-term borrowings | 1,159,425 | 1,297,247 | 1,109,865 | 1,017,121 | 939,338 | 1,146,719 | 947,427 | ||||||||||||||||||||
Long-term debt | 454,271 | 519,736 | 546,705 | 569,947 | 570,304 | 522,340 | 438,567 | ||||||||||||||||||||
Total borrowed funds | 1,613,696 | 1,816,983 | 1,656,570 | 1,587,068 | 1,509,642 | 1,669,059 | 1,385,994 | ||||||||||||||||||||
Accrued interest and other liabilities | 379,046 | 275,038 | 202,806 | 203,570 | 166,590 | 265,623 | 156,998 | ||||||||||||||||||||
Total Liabilities | 12,215,181 | 12,110,187 | 11,955,736 | 11,858,317 | 11,726,074 | 12,036,040 | 10,859,177 | ||||||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
Common stock | 1,640,066 | 1,629,286 | 1,622,994 | 1,625,228 | 1,632,361 | 1,629,434 | 1,371,373 | ||||||||||||||||||||
Retained earnings | 691,236 | 662,899 | 635,629 | 610,737 | 576,145 | 650,381 | 535,139 | ||||||||||||||||||||
Accumulated other comprehensive loss | 13,986 | 11,985 | (12,889 | ) | (39,796 | ) | (55,161 | ) | (6,480 | ) | (43,081 | ) | |||||||||||||||
Treasury stock, at cost | (100,181 | ) | (93,843 | ) | (98,737 | ) | (101,935 | ) | (110,461 | ) | (98,656 | ) | (111,170 | ) | |||||||||||||
Total Shareholders' Equity | 2,245,107 | 2,210,327 | 2,146,997 | 2,094,234 | 2,042,884 | 2,174,679 | 1,752,261 | ||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 14,460,288 | $ | 14,320,514 | $ | 14,102,733 | $ | 13,952,551 | $ | 13,768,958 | $ | 14,210,719 | $ | 12,611,438 | |||||||||||||
7
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||||||||
NET INTEREST MARGIN RATE/VOLUME ANALYSIS | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | ||||||||||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | ||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Investment securities | $ | 3,102,867 | 3.16 | % | $ | 3,290,666 | 3.21 | % | $ | 3,204,758 | 3.30 | % | $ | 3,288,875 | 3.28 | % | $ | 2,897,167 | 3.19 | % | |||||||||||||||
Interest-bearing deposits with other banks | 36,672 | 1.81 | % | 38,569 | 2.28 | % | 32,013 | 2.38 | % | 35,814 | 2.25 | % | 32,090 | 2.15 | % | ||||||||||||||||||||
Gross loans (1) | 9,149,222 | 5.33 | % | 9,014,092 | 5.58 | % | 8,766,302 | 5.73 | % | 8,948,535 | 5.58 | % | 8,151,068 | 5.49 | % | ||||||||||||||||||||
Total earning assets | 12,288,761 | 4.77 | % | 12,343,327 | 4.94 | % | 12,003,073 | 5.07 | % | 12,273,224 | 4.95 | % | 11,080,325 | 4.88 | % | ||||||||||||||||||||
Nonearning assets | |||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (56,649 | ) | (61,911 | ) | (58,216 | ) | (58,504 | ) | (56,115 | ) | |||||||||||||||||||||||||
Cash and due from banks | 221,060 | 191,000 | 213,927 | 191,864 | 188,971 | ||||||||||||||||||||||||||||||
Accrued interest and other assets | 2,007,116 | 1,848,098 | 1,610,174 | 1,804,135 | 1,398,257 | ||||||||||||||||||||||||||||||
Total assets | $ | 14,460,288 | $ | 14,320,514 | $ | 13,768,958 | $ | 14,210,719 | $ | 12,611,438 | |||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 2,373,962 | 0.53 | % | $ | 2,325,405 | 0.56 | % | $ | 2,342,528 | 0.48 | % | $ | 2,326,193 | 0.55 | % | $ | 2,169,396 | 0.39 | % | |||||||||||||||
Savings | 2,995,395 | 0.60 | % | 2,945,076 | 0.69 | % | 3,156,789 | 0.66 | % | 3,027,725 | 0.71 | % | 2,990,731 | 0.60 | % | ||||||||||||||||||||
Time | 2,214,174 | 2.03 | % | 2,234,227 | 2.09 | % | 2,073,752 | 1.75 | % | 2,223,429 | 2.02 | % | 1,938,709 | 1.57 | % | ||||||||||||||||||||
Total interest-bearing deposits | 7,583,531 | 1.00 | % | 7,504,708 | 1.07 | % | 7,573,069 | 0.90 | % | 7,577,347 | 1.04 | % | 7,098,836 | 0.80 | % | ||||||||||||||||||||
Borrowed funds | |||||||||||||||||||||||||||||||||||
Short-term borrowings | 1,159,425 | 1.86 | % | 1,297,247 | 2.20 | % | 939,338 | 2.19 | % | 1,146,719 | 2.20 | % | 947,427 | 1.90 | % | ||||||||||||||||||||
Long-term debt | 454,271 | 3.75 | % | 519,736 | 3.63 | % | 570,304 | 3.54 | % | 522,340 | 3.65 | % | 438,567 | 3.68 | % | ||||||||||||||||||||
Total borrowed funds | 1,613,696 | 2.39 | % | 1,816,983 | 2.61 | % | 1,509,642 | 2.70 | % | 1,669,059 | 2.65 | % | 1,385,994 | 2.47 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 9,197,227 | 1.24 | % | 9,321,691 | 1.37 | % | 9,082,711 | 1.20 | % | 9,246,406 | 1.33 | % | 8,484,830 | 1.07 | % | ||||||||||||||||||||
Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 2,638,908 | 2,513,458 | 2,476,773 | 2,524,011 | 2,217,349 | ||||||||||||||||||||||||||||||
Other liabilities | 379,046 | 275,038 | 166,590 | 265,623 | 156,998 | ||||||||||||||||||||||||||||||
Shareholders' equity | 2,245,107 | 2,210,327 | 2,042,884 | 2,174,679 | 1,752,261 | ||||||||||||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 14,460,288 | $ | 14,320,514 | $ | 13,768,958 | $ | 14,210,719 | $ | 12,611,438 | |||||||||||||||||||||||||
Net interest income | $ | 118,902 | $ | 121,535 | $ | 125,959 | $ | 484,254 | $ | 449,235 | |||||||||||||||||||||||||
Net interest spread | 3.53 | % | 3.57 | % | 3.87 | % | 3.62 | % | 3.81 | % | |||||||||||||||||||||||||
Net interest margin | 3.84 | % | 3.91 | % | 4.16 | % | 3.95 | % | 4.05 | % | |||||||||||||||||||||||||
Tax equivalent adjustment | 0.05 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.05 | % | |||||||||||||||||||||||||
Net interest margin (fully tax equivalent) | 3.89 | % | 3.96 | % | 4.21 | % | 4.00 | % | 4.10 | % | |||||||||||||||||||||||||
(1) Loans held for sale and nonaccrual loans are included in gross loans. | |||||||||||||||||||||||||||||||||||
8
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 | $ | (461 | ) | $ | (1,494 | ) | $ | (1,955 | ) | $ | (1,165 | ) | $ | (810 | ) | $ | (1,975 | ) | $ | 2,425 | $ | 12,835 | $ | 15,260 | ||||||||||||
Interest-bearing deposits with other banks | (46 | ) | (9 | ) | (55 | ) | (46 | ) | 21 | (25 | ) | 30 | 84 | 114 | ||||||||||||||||||||||
Gross loans (2) | (5,798 | ) | 1,814 | (3,984 | ) | (8,918 | ) | 5,140 | (3,778 | ) | 7,352 | 44,470 | 51,822 | |||||||||||||||||||||||
Total earning assets | (6,305 | ) | 311 | (5,994 | ) | (10,129 | ) | 4,351 | (5,778 | ) | 9,807 | 57,389 | 67,196 | |||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | $ | (1,323 | ) | $ | 198 | $ | (1,125 | ) | $ | 1,802 | $ | 26 | $ | 1,828 | $ | 17,079 | $ | 4,991 | $ | 22,070 | ||||||||||||||||
Borrowed funds | ||||||||||||||||||||||||||||||||||||
Short-term borrowings | (1,124 | ) | (645 | ) | (1,769 | ) | (787 | ) | 1,031 | 244 | 2,816 | 4,386 | 7,202 | |||||||||||||||||||||||
Long-term debt | 152 | (619 | ) | (467 | ) | 304 | (1,097 | ) | (793 | ) | (151 | ) | 3,056 | 2,905 | ||||||||||||||||||||||
Total borrowed funds | (972 | ) | (1,264 | ) | (2,236 | ) | (483 | ) | (66 | ) | (549 | ) | 2,665 | 7,442 | 10,107 | |||||||||||||||||||||
Total interest-bearing liabilities | (2,295 | ) | (1,066 | ) | (3,361 | ) | 1,319 | (40 | ) | 1,279 | 19,744 | 12,433 | 32,177 | |||||||||||||||||||||||
Net interest income (1) | $ | (4,010 | ) | $ | 1,377 | $ | (2,633 | ) | $ | (11,448 | ) | $ | 4,391 | $ | (7,057 | ) | $ | (9,937 | ) | $ | 44,956 | $ | 35,019 | |||||||||||||
(1) Not tax equivalent. | ||||||||||||||||||||||||||||||||||||
(2) Loans held for sale and nonaccrual loans are included in gross loans. | ||||||||||||||||||||||||||||||||||||
9
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CREDIT QUALITY | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Full Year | Full Year | |||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 56,552 | $ | 61,549 | $ | 56,722 | $ | 56,542 | $ | 57,715 | $ | 56,542 | $ | 54,021 | |||||||||||||
Provision for loan and lease losses | 4,629 | 5,228 | 6,658 | 14,083 | 5,310 | 30,598 | 14,586 | ||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||
Commercial and industrial | 2,919 | 9,556 | 1,873 | 12,328 | 6,060 | 26,676 | 11,533 | ||||||||||||||||||||
Lease financing | 62 | 0 | 0 | 100 | 0 | 162 | 0 | ||||||||||||||||||||
Construction real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Commercial real estate | 1,854 | 535 | 86 | 1,214 | 1,679 | 3,689 | 4,835 | ||||||||||||||||||||
Residential real estate | 167 | 278 | 150 | 82 | 80 | 677 | 422 | ||||||||||||||||||||
Home equity | 807 | 627 | 689 | 468 | 747 | 2,591 | 1,725 | ||||||||||||||||||||
Installment | 31 | 65 | 78 | 49 | 158 | 223 | 435 | ||||||||||||||||||||
Credit card | 319 | 598 | 289 | 341 | 392 | 1,547 | 1,720 | ||||||||||||||||||||
Total gross charge-offs | 6,159 | 11,659 | 3,165 | 14,582 | 9,116 | 35,565 | 20,670 | ||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||
Commercial and industrial | 1,796 | 556 | 291 | 240 | 485 | 2,883 | 2,066 | ||||||||||||||||||||
Lease financing | 0 | 0 | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||
Construction real estate | 0 | 0 | 5 | 63 | 0 | 68 | 146 | ||||||||||||||||||||
Commercial real estate | 439 | 347 | 254 | 73 | 1,681 | 1,113 | 4,106 | ||||||||||||||||||||
Residential real estate | 72 | 64 | 101 | 36 | 44 | 273 | 211 | ||||||||||||||||||||
Home equity | 243 | 335 | 572 | 185 | 274 | 1,335 | 1,309 | ||||||||||||||||||||
Installment | 49 | 93 | 61 | 48 | 94 | 251 | 575 | ||||||||||||||||||||
Credit card | 29 | 39 | 50 | 34 | 55 | 152 | 191 | ||||||||||||||||||||
Total recoveries | 2,628 | 1,434 | 1,334 | 679 | 2,633 | 6,075 | 8,605 | ||||||||||||||||||||
Total net charge-offs | 3,531 | 10,225 | 1,831 | 13,903 | 6,483 | 29,490 | 12,065 | ||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 57,650 | $ | 56,552 | $ | 61,549 | $ | 56,722 | $ | 56,542 | $ | 57,650 | $ | 56,542 | |||||||||||||
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | |||||||||||||||||||||||||||
Commercial and industrial | 0.18 | % | 1.42 | % | 0.25 | % | 1.95 | % | 0.92 | % | 0.95 | % | 0.38 | % | |||||||||||||
Lease financing | 0.27 | % | 0.00 | % | 0.00 | % | 0.45 | % | 0.00 | % | 0.17 | % | 0.00 | % | |||||||||||||
Construction real estate | 0.00 | % | 0.00 | % | 0.00 | % | (0.05 | )% | 0.00 | % | (0.01 | )% | (0.03 | )% | |||||||||||||
Commercial real estate | 0.14 | % | 0.02 | % | (0.02 | )% | 0.12 | % | 0.00 | % | 0.07 | % | 0.02 | % | |||||||||||||
Residential real estate | 0.04 | % | 0.08 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.04 | % | 0.03 | % | |||||||||||||
Home equity | 0.29 | % | 0.15 | % | 0.06 | % | 0.14 | % | 0.23 | % | 0.16 | % | 0.06 | % | |||||||||||||
Installment | (0.08 | )% | (0.13 | )% | 0.08 | % | 0.00 | % | 0.27 | % | (0.03 | )% | (0.15 | )% | |||||||||||||
Credit card | 2.27 | % | 4.40 | % | 1.92 | % | 2.62 | % | 2.76 | % | 2.81 | % | 3.19 | % | |||||||||||||
Total net charge-offs | 0.15 | % | 0.45 | % | 0.08 | % | 0.64 | % | 0.29 | % | 0.33 | % | 0.15 | % | |||||||||||||
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | |||||||||||||||||||||||||||
Nonaccrual loans (1) | |||||||||||||||||||||||||||
Commercial and industrial | $ | 24,346 | $ | 28,358 | $ | 18,502 | $ | 19,263 | $ | 30,925 | $ | 24,346 | $ | 30,925 | |||||||||||||
Lease financing | 223 | 284 | 295 | 301 | 22 | 223 | 22 | ||||||||||||||||||||
Construction real estate | 0 | 5 | 6 | 7 | 9 | 0 | 9 | ||||||||||||||||||||
Commercial real estate | 7,295 | 14,889 | 15,981 | 21,082 | 20,500 | 7,295 | 20,500 | ||||||||||||||||||||
Residential real estate | 10,892 | 11,655 | 11,627 | 13,052 | 13,495 | 10,892 | 13,495 | ||||||||||||||||||||
Home equity | 5,242 | 5,427 | 4,745 | 5,581 | 5,580 | 5,242 | 5,580 | ||||||||||||||||||||
Installment | 167 | 75 | 195 | 170 | 169 | 167 | 169 | ||||||||||||||||||||
Nonaccrual loans | 48,165 | 60,693 | 51,351 | 59,456 | 70,700 | 48,165 | 70,700 | ||||||||||||||||||||
Accruing troubled debt restructurings (TDRs) | 11,435 | 18,450 | 37,420 | 22,817 | 16,109 | 11,435 | 16,109 | ||||||||||||||||||||
Total nonperforming loans | 59,600 | 79,143 | 88,771 | 82,273 | 86,809 | 59,600 | 86,809 | ||||||||||||||||||||
Other real estate owned (OREO) | 2,033 | 1,613 | 1,421 | 1,665 | 1,401 | 2,033 | 1,401 | ||||||||||||||||||||
Total nonperforming assets | 61,633 | 80,756 | 90,192 | 83,938 | 88,210 | 61,633 | 88,210 | ||||||||||||||||||||
Accruing loans past due 90 days or more | 201 | 287 | 107 | 178 | 63 | 201 | 63 | ||||||||||||||||||||
Total underperforming assets | $ | 61,834 | $ | 81,043 | $ | 90,299 | $ | 84,116 | $ | 88,273 | $ | 61,834 | $ | 88,273 | |||||||||||||
Total classified assets | $ | 89,250 | $ | 132,500 | $ | 147,753 | $ | 142,014 | $ | 131,668 | $ | 89,250 | $ | 131,668 | |||||||||||||
CREDIT QUALITY RATIOS | |||||||||||||||||||||||||||
Allowance for loan and lease losses to | |||||||||||||||||||||||||||
Nonaccrual loans | 119.69 | % | 93.18 | % | 119.86 | % | 95.40 | % | 79.97 | % | 119.69 | % | 79.97 | % | |||||||||||||
Nonperforming loans | 96.73 | % | 71.46 | % | 69.33 | % | 68.94 | % | 65.13 | % | 96.73 | % | 65.13 | % | |||||||||||||
Total ending loans | 0.63 | % | 0.62 | % | 0.69 | % | 0.64 | % | 0.64 | % | 0.63 | % | 0.64 | % | |||||||||||||
Nonperforming loans to total loans | 0.65 | % | 0.87 | % | 0.99 | % | 0.93 | % | 0.98 | % | 0.65 | % | 0.98 | % | |||||||||||||
Nonperforming assets to | |||||||||||||||||||||||||||
Ending loans, plus OREO | 0.67 | % | 0.89 | % | 1.00 | % | 0.95 | % | 1.00 | % | 0.67 | % | 1.00 | % | |||||||||||||
Total assets | 0.42 | % | 0.56 | % | 0.62 | % | 0.60 | % | 0.63 | % | 0.42 | % | 0.63 | % | |||||||||||||
Nonperforming assets, excluding accruing TDRs to | |||||||||||||||||||||||||||
Ending loans, plus OREO | 0.55 | % | 0.69 | % | 0.59 | % | 0.69 | % | 0.82 | % | 0.55 | % | 0.82 | % | |||||||||||||
Total assets | 0.35 | % | 0.43 | % | 0.37 | % | 0.43 | % | 0.52 | % | 0.35 | % | 0.52 | % | |||||||||||||
Classified assets to total assets | 0.62 | % | 0.92 | % | 1.02 | % | 1.01 | % | 0.94 | % | 0.62 | % | 0.94 | % | |||||||||||||
(1) Nonaccrual loans include nonaccrual TDRs of $18.5 million, $21.5 million, $11.0 million, $13.1 million, and $22.4 million, as of December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively. | |||||||||||||||||||||||||||
10
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CAPITAL ADEQUACY | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Twelve months ended, | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
PER COMMON SHARE | |||||||||||||||||||||||||||
Market Price | |||||||||||||||||||||||||||
High | $ | 26.04 | $ | 25.49 | $ | 25.80 | $ | 28.56 | $ | 29.58 | $ | 28.56 | $ | 33.55 | |||||||||||||
Low | $ | 23.24 | $ | 22.37 | $ | 22.16 | $ | 23.02 | $ | 22.40 | $ | 22.16 | $ | 22.40 | |||||||||||||
Close | $ | 25.44 | $ | 24.48 | $ | 24.22 | $ | 24.06 | $ | 23.72 | $ | 25.44 | $ | 23.72 | |||||||||||||
Average shares outstanding - basic | 98,684,706 | 98,517,025 | 98,083,799 | 97,926,088 | 97,424,839 | 98,305,570 | 88,582,090 | ||||||||||||||||||||
Average shares outstanding - diluted | 99,232,167 | 99,077,723 | 98,648,384 | 98,436,311 | 98,468,237 | 98,851,471 | 89,614,205 | ||||||||||||||||||||
Ending shares outstanding | 98,490,998 | 100,094,819 | 98,647,690 | 98,613,872 | 97,894,286 | 98,490,998 | 97,894,286 | ||||||||||||||||||||
Total shareholders' equity | $ | 2,247,705 | $ | 2,261,313 | $ | 2,188,189 | $ | 2,130,419 | $ | 2,078,249 | $ | 2,247,705 | $ | 2,078,249 | |||||||||||||
REGULATORY CAPITAL | Preliminary | Preliminary | |||||||||||||||||||||||||
Common equity tier 1 capital | $ | 1,245,746 | $ | 1,253,803 | $ | 1,281,406 | $ | 1,246,004 | $ | 1,215,613 | $ | 1,245,746 | $ | 1,215,613 | |||||||||||||
Common equity tier 1 capital ratio | 11.30 | % | 11.52 | % | 12.00 | % | 12.03 | % | 11.87 | % | 11.30 | % | 11.87 | % | |||||||||||||
Tier 1 capital | $ | 1,288,185 | $ | 1,296,399 | $ | 1,323,905 | $ | 1,287,757 | $ | 1,257,366 | $ | 1,288,185 | $ | 1,257,366 | |||||||||||||
Tier 1 ratio | 11.69 | % | 11.91 | % | 12.40 | % | 12.43 | % | 12.28 | % | 11.69 | % | 12.28 | % | |||||||||||||
Total capital | $ | 1,475,813 | $ | 1,482,708 | $ | 1,515,382 | $ | 1,474,723 | $ | 1,444,146 | $ | 1,475,813 | $ | 1,444,146 | |||||||||||||
Total capital ratio | 13.39 | % | 13.62 | % | 14.20 | % | 14.24 | % | 14.10 | % | 13.39 | % | 14.10 | % | |||||||||||||
Total capital in excess of minimum requirement | $ | 318,315 | $ | 339,935 | $ | 394,571 | $ | 387,048 | $ | 432,832 | $ | 318,315 | $ | 432,832 | |||||||||||||
Total risk-weighted assets | $ | 11,023,795 | $ | 10,883,554 | $ | 10,674,393 | $ | 10,358,805 | $ | 10,241,159 | $ | 11,023,795 | $ | 10,241,159 | |||||||||||||
Leverage ratio | 9.58 | % | 9.75 | % | 10.02 | % | 9.84 | % | 9.71 | % | 9.58 | % | 9.71 | % | |||||||||||||
OTHER CAPITAL RATIOS | |||||||||||||||||||||||||||
Ending shareholders' equity to ending assets | 15.49 | % | 15.62 | % | 15.16 | % | 15.14 | % | 14.86 | % | 15.49 | % | 14.86 | % | |||||||||||||
Ending tangible shareholders' equity to ending tangible assets | 9.07 | % | 9.17 | % | 9.34 | % | 9.15 | % | 8.79 | % | 9.07 | % | 8.79 | % | |||||||||||||
Average shareholders' equity to average assets | 15.53 | % | 15.43 | % | 15.22 | % | 15.01 | % | 14.84 | % | 15.30 | % | 13.89 | % | |||||||||||||
Average tangible shareholders' equity to average tangible assets | 9.07 | % | 9.35 | % | 9.26 | % | 8.95 | % | 8.66 | % | 9.16 | % | 8.40 | % | |||||||||||||
REPURCHASE PROGRAM (1) | |||||||||||||||||||||||||||
Shares repurchased | 1,609,778 | 1,143,494 | 0 | 0 | 0 | 2,753,272 | 0 | ||||||||||||||||||||
Average share repurchase price | $ | 24.13 | $ | 23.94 | N/A | N/A | N/A | $ | 24.05 | N/A | |||||||||||||||||
Total cost of shares repurchased | $ | 38,846 | $ | 27,372 | N/A | N/A | N/A | $ | 66,218 | N/A | |||||||||||||||||
(1) Represents share repurchases as part of publicly announced plans. | |||||||||||||||||||||||||||
N/A = Not applicable | |||||||||||||||||||||||||||
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