FFBC

FIRST FINANCIAL BANCORP

Financial Services | Mid Cap

$0.66

EPS Forecast

$212.9

Revenue Forecast

Announcing earnings for the quarter ending 2024-12-31 soon
EX-99.1 2 a8k4q19earningsrelease99-1.htm EXHIBIT 99.1 Exhibit
                                                Exhibit 99.1
yellowbara10.jpgbancorplogoa02.jpg                                        
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.

1

•
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.




2

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    

3


contentsheader0215a20.jpg
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.

2


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
 
 
 
 
 
 
 
 
 
 
 
 
 

11