EX-99.1 2 a8k2q21earningsreleaseex991.htm EX-99.1

                                                Exhibit 99.1

                                        

First Financial Bancorp Announces Second Quarter 2021 Financial Results

•Earnings per diluted share of $0.52; $0.58 on an adjusted(1) basis

•Return on average assets of 1.26%; 1.39% as adjusted(1)

•Net interest margin FTE(1) of 3.31%

•Provision recapture of $4.2 million

•Repurchased 1,308,945 shares during the quarter

Cincinnati, Ohio - July 22, 2021 First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and six months ended June 30, 2021.

For the three months ended June 30, 2021, the Company reported net income of $50.9 million, or $0.52 per diluted common share. These results compare to net income of $47.3 million, or $0.48 per diluted common share, for the first quarter of 2021 and $37.4 million, or $0.38 per diluted common share, for the second quarter of 2020. For the six months ended June 30, 2021, First Financial had earnings per diluted common share of $1.01 compared to $0.67 for the same period in 2020.

Return on average assets for the second quarter of 2021 was 1.26% while return on average tangible common equity was 16.31%(1). These compare to returns on average assets of 1.20% and 0.96%, and returns on average tangible common equity of 15.24%(1) and 12.90%(1), in the first quarter of 2021 and the second quarter of 2020, respectively.

Second quarter 2021 highlights include:

•After adjustments(1) for certain nonrecurring items:

◦Net income of $0.58 per diluted common share

◦1.39% return on average assets

◦18.03% return on average tangible common equity

•Net interest margin of 3.31% on a fully tax-equivalent basis(1) in line with expectations

◦9 basis point reduction from linked quarter driven by lower yields on earning assets and additional days during the second quarter

•Noninterest income of $43.0 million, or $43.1 million as adjusted(1)

◦Record foreign exchange income of $12.0 million; increased $1.3 million, or 11.9%, compared to linked quarter

◦Record wealth management fees of $6.2 million; increased $0.6 million, or 10.4%, compared to the linked quarter

•Noninterest expenses of $99.6 million, or $91.8 million as adjusted(1)

◦Adjustments(1) include:

▪$3.8 million of legal settlement costs

▪$2.8 million of branch consolidation costs

▪$1.2 million of tax credit investment write-downs

◦Efficiency ratio of 63.5%; 58.4% as adjusted(1)

•Loan balances declined during the quarter driven by $288.8 million of PPP forgiveness and elevated prepayments

__________________________________________________________________________________

(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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•Average transactional deposit balances grew $469.6 million compared to the linked quarter; 17.8% on an annualized basis

•Total Allowance for Credit Losses of $173.1 million; Total quarterly provision recapture of $4.2 million

◦Loans and leases - ACL of $159.6 million, 1.68% of total loans; 1.75% of loans excluding PPP

◦Unfunded Commitments - ACL of $13.6 million

◦Provision recapture driven by improvements in economic conditions and classified asset balances, coupled with lower net charge-offs

•Strong capital ratios

◦Total capital of 15.31%

◦Tier 1 common equity of 11.78%

◦Tangible common equity of 8.37%(1); 8.61%(1) excluding PPP loans

◦Tangible book value per share of $13.08(1); $0.30 increase compared to linked quarter

◦Repurchased 1,308,945 shares during second quarter; 2,149,060 shares repurchased in 2021

Archie Brown, President and Chief Executive Officer, commented, “We are very pleased to announce second quarter results that are highlighted by robust earnings, higher fee income, lower credit costs and improving credit trends.”

Mr. Brown continued, “Our core quarterly financial metrics reflected the strong quarter with an adjusted(1) earnings per share of $0.58, adjusted(1) return on assets of 1.39%, and an adjusted(1) efficiency ratio of 58.4%. The quarterly performance was bolstered by higher fee revenue in interchange, and record revenue in Wealth Management and Bannockburn. Additionally, provision recapture during the period positively impacted our results, driven by improved credit quality trends, which included declines in net charge-offs and classified asset balances. We are optimistic about the economic environment and expect further reductions in credit costs in the coming periods.”

Mr. Brown added, “We were pleased with a 23% increase in loan originations for the quarter, driven primarily by our core commercial markets, in addition to consumer and mortgage banking. Loan payoffs accelerated during the quarter in almost all commercial banking areas, with larger payoff amounts in Commercial Finance and ICRE driving an overall reduction in core loan balances for the quarter. Given the state of our loan pipeline, we expect originations to remain strong in the second half of the year, however we also anticipate higher payoffs to continue due to the amount of liquidity in the market. Average transactional deposits increased 18% on an annualized basis, as clients continued to build liquidity from recent government stimulus actions, however we believe these balances may have peaked as we began to experience some outflows late in the quarter. Our capital ratios remained strong and in excess of both internal and external targets. We also remained active in our share buyback program, repurchasing over 1 million shares during the quarter. When combined with the common dividend, the share repurchases approximate a return to shareholders of 98% of adjusted(1) quarterly earnings. We anticipate further share buyback activity in the third quarter, absent higher priority capital deployment alternatives.”

Mr. Brown concluded, “Throughout the summer, the number of associates working in our offices has increased steadily in anticipation of a broader return, and we are very much looking forward to welcoming all of our associates back in the beginning of August. We have learned a great deal from the remote environment during the last 16 months and are excited to incorporate the best practices derived from that experience into our culture moving forward, including greater associate flexibility.”

Full detail of the Company’s second quarter 2021 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, July 23, 2021 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 10158382. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

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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:

•economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business;

•future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses

•the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;

•Management’s ability to effectively execute its business plans;

•mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;

•the possibility that any of the anticipated benefits of the Company’s acquisitions will not be realized or will not be realized within the expected time period;

•the effect of changes in accounting policies and practices;

•changes in consumer spending, borrowing and saving and changes in unemployment;

•changes in customers’ performance and creditworthiness;

•the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;  

•current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;

•the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;

•our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

•financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

•the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;

•the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;

•a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;

•the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and

•our ability to develop and execute effective business plans and strategies.

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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, 2020, 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 June 30, 2021, the Company had $16.0 billion in assets, $9.5 billion in loans, $12.5 billion in deposits and $2.3 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.2 billion in assets under management as of June 30, 2021. The Company operated 139 full service banking centers as of June 30, 2021, primarily in Ohio, Indiana, Kentucky and Illinois, 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

June 30, 2021

(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

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FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
			Three Months Ended,																														Six months ended,
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,
			2021						2021						2020						2020						2020						2021						2020
RESULTS OF OPERATIONS
Net income			$	50,888					$	47,315					$	48,312					$	41,477					$	37,393					$	98,203					$	66,021
Net earnings per share - basic			$	0.53					$	0.49					$	0.50					$	0.43					$	0.38					$	1.02					$	0.68
Net earnings per share - diluted			$	0.52					$	0.48					$	0.49					$	0.42					$	0.38					$	1.01					$	0.67
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.23					$	0.46					$	0.46
KEY FINANCIAL RATIOS
Return on average assets			1.26		%				1.20		%				1.20		%				1.04		%				0.96		%				1.23		%				0.88		%
Return on average shareholders' equity			9.02		%				8.44		%				8.52		%				7.40		%				6.88		%				8.73		%				6.04		%
Return on average tangible shareholders' equity (1)			16.31		%				15.24		%				15.50		%				13.61		%				12.90		%				15.78		%				11.29		%
Net interest margin			3.27		%				3.35		%				3.45		%				3.32		%				3.38		%				3.31		%				3.54		%
Net interest margin (fully tax equivalent) (1)(2)			3.31		%				3.40		%				3.49		%				3.36		%				3.44		%				3.35		%				3.60		%
Ending shareholders' equity as a percent of ending assets			14.15		%				13.97		%				14.29		%				14.11		%				13.99		%				14.15		%				13.99		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)			8.37		%				8.22		%				8.47		%				8.25		%				8.09		%				8.37		%				8.09		%
Risk-weighted assets (1)			11.12		%				11.02		%				11.29		%				11.07		%				10.89		%				11.12		%				10.89		%
Average shareholders' equity as a percent of average assets			13.96		%				14.17		%				14.07		%				14.08		%				13.91		%				14.06		%				14.54		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)			8.23		%				8.38		%				8.26		%				8.18		%				7.94		%				8.30		%				8.34		%
Book value per share			$	23.59					$	23.16					$	23.28					$	22.94					$	22.66					$	23.59					$	22.66
Tangible book value per share (1)			$	13.08					$	12.78					$	12.93					$	12.56					$	12.26					$	13.08					$	12.26
Common equity tier 1 ratio (3)			11.78		%				11.81		%				11.82		%				11.63		%				11.49		%				11.78		%				11.49		%
Tier 1 ratio (3)			12.16		%				12.19		%				12.20		%				12.02		%				11.87		%				12.16		%				11.87		%
Total capital ratio (3)			15.31		%				15.41		%				15.55		%				15.37		%				15.19		%				15.31		%				15.19		%
Leverage ratio (3)			9.14		%				9.34		%				9.55		%				9.55		%				8.98		%				9.14		%				8.98		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)			$	9,831,965					$	9,951,855					$	10,127,881					$	10,253,392					$	10,002,379					$	9,891,579					$	9,611,511
Investment securities			4,130,207						3,782,993						3,403,839						3,162,832						3,164,243						3,957,559						3,139,983
Interest-bearing deposits with other banks			45,593						46,912						143,884						40,277						91,990						46,249						65,661
Total earning assets			$	14,007,765					$	13,781,760					$	13,675,604					$	13,456,501					$	13,258,612					$	13,895,387					$	12,817,155
Total assets			$	16,215,469					$	16,042,654					$	16,030,986					$	15,842,010					$	15,710,204					$	16,129,539					$	15,117,313
Noninterest-bearing deposits			$	4,003,626					$	3,840,046					$	3,720,417					$	3,535,432					$	3,335,866					$	3,922,288					$	2,989,553
Interest-bearing deposits			8,707,553						8,531,822						8,204,306						8,027,082						8,395,229						8,620,173						7,993,010
Total deposits			$	12,711,179					$	12,371,868					$	11,924,723					$	11,562,514					$	11,731,095					$	12,542,461					$	10,982,563
Borrowings			$	749,114					$	886,379					$	1,307,461					$	1,519,748					$	1,272,819					$	817,367					$	1,504,293
Shareholders' equity			$	2,263,687					$	2,272,749					$	2,256,062					$	2,230,422					$	2,185,865					$	2,268,193					$	2,197,799
CREDIT QUALITY RATIOS
Allowance to ending loans			1.68		%				1.71		%				1.77		%				1.65		%				1.56		%				1.68		%				1.56		%
Allowance to nonaccrual loans			184.77		%				199.33		%				217.55		%				216.28		%				233.74		%				184.77		%				233.74		%
Allowance to nonperforming loans			162.12		%				175.44		%				199.97		%				196.69		%				208.06		%				162.12		%				208.06		%
Nonperforming loans to total loans			1.03		%				0.97		%				0.89		%				0.84		%				0.75		%				1.03		%				0.75		%
Nonperforming assets to ending loans, plus OREO			1.04		%				0.98		%				0.90		%				0.86		%				0.77		%				1.04		%				0.77		%
Nonperforming assets to total assets			0.62		%				0.60		%				0.56		%				0.55		%				0.49		%				0.62		%				0.49		%
Classified assets to total assets			1.14		%				1.22		%				0.89		%				0.84		%				0.79		%				1.14		%				0.79		%
Net charge-offs to average loans (annualized)			0.23		%				0.38		%				0.26		%				0.21		%				0.12		%				0.30		%				0.05		%

(1) Non-GAAP measure. 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.

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

(3) June 30, 2021 regulatory capital ratios are preliminary.

(4) 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,																		Six months ended,
			June 30,																		June 30,
			2021						2020						% Change						2021						2020						% Change
Interest income
Loans and leases, including fees			$	97,494					$	105,900					(7.9)		%				$	196,425					$	221,675					(11.4)		%
Investment securities
Taxable			19,524						18,476						5.7		%				38,131						37,481						1.7		%
Tax-exempt			4,871						4,937						(1.3)		%				9,914						9,519						4.1		%
Total investment securities interest			24,395						23,413						4.2		%				48,045						47,000						2.2		%
Other earning assets			25						47						(46.8)		%				53						189						(72.0)		%
Total interest income			121,914						129,360						(5.8)		%				244,523						268,864						(9.1)		%
Interest expense
Deposits			3,693						11,751						(68.6)		%				8,026						28,116						(71.5)		%
Short-term borrowings			53						1,274						(95.8)		%				120						6,361						(98.1)		%
Long-term borrowings			4,142						4,759						(13.0)		%				8,475						8,529						(0.6)		%
Total interest expense			7,888						17,784						(55.6)		%				16,621						43,006						(61.4)		%
Net interest income			114,026						111,576						2.2		%				227,902						225,858						0.9		%
Provision for credit losses-loans and leases			(4,756)						17,859						(126.6)		%				(1,306)						41,739						(103.1)		%
Provision for credit losses-unfunded commitments			517						2,370						(78.2)		%				1,055						3,938						(73.2)		%
Net interest income after provision for credit losses			118,265						91,347						29.5		%				228,153						180,181						26.6		%
Noninterest income
Service charges on deposit accounts			7,537						6,001						25.6		%				14,683						14,436						1.7		%
Trust and wealth management fees			6,216						5,254						18.3		%				11,846						10,951						8.2		%
Bankcard income			3,732						2,844						31.2		%				6,860						5,542						23.8		%
Client derivative fees			1,795						2,984						(39.8)		%				3,351						6,089						(45.0)		%
Foreign exchange income			12,037						6,576						83.0		%				22,794						16,542						37.8		%
Net gains from sales of loans			8,489						16,662						(49.1)		%				17,943						19,493						(8.0)		%
Net gains (losses) on sale of investment securities			(265)						2						N/M						(431)						(57)						N/M
Unrealized gain (loss) on equity securities			161						150						7.3		%				273						52						N/M
Other			3,285						2,252						45.9		%				5,990						5,061						18.4		%
Total noninterest income			42,987						42,725						0.6		%				83,309						78,109						6.7		%
Noninterest expenses
Salaries and employee benefits			60,784						55,925						8.7		%				122,037						110,747						10.2		%
Net occupancy			5,535						5,378						2.9		%				11,239						11,482						(2.1)		%
Furniture and equipment			3,371						3,681						(8.4)		%				7,340						7,734						(5.1)		%
Data processing			7,864						7,019						12.0		%				15,151						13,408						13.0		%
Marketing			2,035						1,339						52.0		%				3,396						2,559						32.7		%
Communication			746						907						(17.8)		%				1,584						1,797						(11.9)		%
Professional services			2,029						2,205						(8.0)		%				3,479						4,480						(22.3)		%
State intangible tax			1,201						1,514						(20.7)		%				2,403						3,030						(20.7)		%
FDIC assessments			1,362						1,290						5.6		%				2,711						2,695						0.6		%
Intangible amortization			2,480						2,791						(11.1)		%				4,959						5,583						(11.2)		%
Other			12,236						6,640						84.3		%				17,850						14,840						20.3		%
Total noninterest expenses			99,643						88,689						12.4		%				192,149						178,355						7.7		%
Income before income taxes			61,609						45,383						35.8		%				119,313						79,935						49.3		%
Income tax expense			10,721						7,990						34.2		%				21,110						13,914						51.7		%
Net income			$	50,888					$	37,393					36.1		%				$	98,203					$	66,021					48.7		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.53					$	0.38											$	1.02					$	0.68
Net earnings per share - diluted			$	0.52					$	0.38											$	1.01					$	0.67
Dividends declared per share			$	0.23					$	0.23											$	0.46					$	0.46
Return on average assets			1.26		%				0.96		%										1.23		%				0.88		%
Return on average shareholders' equity			9.02		%				6.88		%										8.73		%				6.04		%
Interest income			$	121,914					$	129,360					(5.8)		%				$	244,523					$	268,864					(9.1)		%
Tax equivalent adjustment			1,619						1,664						(2.7)		%				3,271						3,288						(0.5)		%
Interest income - tax equivalent			123,533						131,024						(5.7)		%				247,794						272,152						(9.0)		%
Interest expense			7,888						17,784						(55.6)		%				16,621						43,006						(61.4)		%
Net interest income - tax equivalent			$	115,645					$	113,240					2.1		%				$	231,173					$	229,146					0.9		%
Net interest margin			3.27		%				3.38		%										3.31		%				3.54		%
Net interest margin (fully tax equivalent) (1)			3.31		%				3.44		%										3.35		%				3.60		%
Full-time equivalent employees			2,053						2,076
(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)
															2021
															Second						First						Year to						% Change
															Quarter						Quarter						Date						Linked Qtr.
Interest income
Loans and leases, including fees															$	97,494					$	98,931					$	196,425					(1.5)		%
Investment securities
Taxable															19,524						18,607						38,131						4.9		%
Tax-exempt															4,871						5,043						9,914						(3.4)		%
Total investment securities interest															24,395						23,650						48,045						3.2		%
Other earning assets															25						28						53						(10.7)		%
Total interest income															121,914						122,609						244,523						(0.6)		%
Interest expense
Deposits															3,693						4,333						8,026						(14.8)		%
Short-term borrowings															53						67						120						(20.9)		%
Long-term borrowings															4,142						4,333						8,475						(4.4)		%
Total interest expense															7,888						8,733						16,621						(9.7)		%
Net interest income															114,026						113,876						227,902						0.1		%
Provision for credit losses-loans and leases															(4,756)						3,450						(1,306)						(237.9)		%
Provision for credit losses-unfunded commitments															517						538						1,055						(3.9)		%
Net interest income after provision for credit losses															118,265						109,888						228,153						7.6		%
Noninterest income
Service charges on deposit accounts															7,537						7,146						14,683						5.5		%
Trust and wealth management fees															6,216						5,630						11,846						10.4		%
Bankcard income															3,732						3,128						6,860						19.3		%
Client derivative fees															1,795						1,556						3,351						15.4		%
Foreign exchange income															12,037						10,757						22,794						11.9		%
Net gains from sales of loans															8,489						9,454						17,943						(10.2)		%
Net gains (losses) on sale of investment securities															(265)						(166)						(431)						59.6		%
Unrealized gain (loss) on equity securities															161						112						273						43.8		%
Other															3,285						2,705						5,990						21.4		%
Total noninterest income															42,987						40,322						83,309						6.6		%
Noninterest expenses
Salaries and employee benefits															60,784						61,253						122,037						(0.8)		%
Net occupancy															5,535						5,704						11,239						(3.0)		%
Furniture and equipment															3,371						3,969						7,340						(15.1)		%
Data processing															7,864						7,287						15,151						7.9		%
Marketing															2,035						1,361						3,396						49.5		%
Communication															746						838						1,584						(11.0)		%
Professional services															2,029						1,450						3,479						39.9		%
State intangible tax															1,201						1,202						2,403						(0.1)		%
FDIC assessments															1,362						1,349						2,711						1.0		%
Intangible amortization															2,480						2,479						4,959						0.0		%
Other															12,236						5,614						17,850						118.0		%
Total noninterest expenses															99,643						92,506						192,149						7.7		%
Income before income taxes															61,609						57,704						119,313						6.8		%
Income tax expense															10,721						10,389						21,110						3.2		%
Net income															$	50,888					$	47,315					$	98,203					7.6		%
ADDITIONAL DATA
Net earnings per share - basic															$	0.53					$	0.49					$	1.02
Net earnings per share - diluted															$	0.52					$	0.48					$	1.01
Dividends declared per share															$	0.23					$	0.23					$	0.46
Return on average assets															1.26		%				1.20		%				1.23		%
Return on average shareholders' equity															9.02		%				8.44		%				8.73		%
Interest income															$	121,914					$	122,609					$	244,523					(0.6)		%
Tax equivalent adjustment															1,619						1,652						3,271						(2.0)		%
Interest income - tax equivalent															123,533						124,261						247,794						(0.6)		%
Interest expense															7,888						8,733						16,621						(9.7)		%
Net interest income - tax equivalent															$	115,645					$	115,528					$	231,173					0.1		%
Net interest margin															3.27		%				3.35		%				3.31		%
Net interest margin (fully tax equivalent) (1)															3.31		%				3.40		%				3.35		%
Full-time equivalent employees															2,053						2,063
(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)
									2020
									Fourth						Third						Second						First						Full
									Quarter						Quarter						Quarter						Quarter						Year
Interest income
Loans and leases, including fees									$	106,733					$	103,249					$	105,900					$	115,775					$	431,657
Investment securities
Taxable									18,402						17,906						18,476						19,005						73,789
Tax-exempt									4,839						4,884						4,937						4,582						19,242
Total investment securities interest									23,241						22,790						23,413						23,587						93,031
Other earning assets									55						31						47						142						275
Total interest income									130,029						126,070						129,360						139,504						524,963
Interest expense
Deposits									5,920						7,886						11,751						16,365						41,922
Short-term borrowings									30						51						1,274						5,087						6,442
Long-term borrowings									5,606						5,953						4,759						3,770						20,088
Total interest expense									11,556						13,890						17,784						25,222						68,452
Net interest income									118,473						112,180						111,576						114,282						456,511
Provision for credit losses-loans and leases									13,758						15,299						17,859						23,880						70,796
Provision for credit losses-unfunded commitments									(2,250)						(1,925)						2,370						1,568						(237)
Net interest income after provision for credit losses									106,965						98,806						91,347						88,834						385,952
Noninterest income
Service charges on deposit accounts									7,654						7,356						6,001						8,435						29,446
Trust and wealth management fees									5,395						4,940						5,254						5,697						21,286
Bankcard income									3,060						3,124						2,844						2,698						11,726
Client derivative fees									2,021						2,203						2,984						3,105						10,313
Foreign exchange income									12,305						10,530						6,576						9,966						39,377
Net gains from sales of loans									13,089						18,594						16,662						2,831						51,176
Net gains (losses) on sale of investment securities									4,618						2						2						(59)						4,563
Unrealized gain (loss) on equity securities									8,975						18						150						(98)						9,045
Other									4,398						2,732						2,252						2,809						12,191
Total noninterest income									61,515						49,499						42,725						35,384						189,123
Noninterest expenses
Salaries and employee benefits									62,263						63,769						55,925						54,822						236,779
Net occupancy									6,159						5,625						5,378						6,104						23,266
Furniture and equipment									3,596						3,638						3,681						4,053						14,968
Data processing									7,269						6,837						7,019						6,389						27,514
Marketing									1,999						1,856						1,339						1,220						6,414
Communication									840						855						907						890						3,492
Professional services									3,038						2,443						2,205						2,275						9,961
Debt extinguishment									7,257						0						0						0						7,257
State intangible tax									1,514						1,514						1,514						1,516						6,058
FDIC assessments									1,065						1,350						1,290						1,405						5,110
Intangible amortization									2,764						2,779						2,791						2,792						11,126
Other									17,034						6,845						6,640						8,200						38,719
Total noninterest expenses									114,798						97,511						88,689						89,666						390,664
Income before income taxes									53,682						50,794						45,383						34,552						184,411
Income tax expense (benefit)									5,370						9,317						7,990						5,924						28,601
Net income									$	48,312					$	41,477					$	37,393					$	28,628					$	155,810
ADDITIONAL DATA
Net earnings per share - basic									$	0.50					$	0.43					$	0.38					$	0.29					$	1.60
Net earnings per share - diluted									$	0.49					$	0.42					$	0.38					$	0.29					$	1.59
Dividends declared per share									$	0.23					$	0.23					$	0.23					$	0.23					$	0.92
Return on average assets									1.20		%				1.04		%				0.96		%				0.79		%				1.00		%
Return on average shareholders' equity									8.52		%				7.40		%				6.88		%				5.21		%				7.02		%
Interest income									$	130,029					$	126,070					$	129,360					$	139,504					$	524,963
Tax equivalent adjustment									1,613						1,628						1,664						1,624						6,529
Interest income - tax equivalent									131,642						127,698						131,024						141,128						531,492
Interest expense									11,556						13,890						17,784						25,222						68,452
Net interest income - tax equivalent									$	120,086					$	113,808					$	113,240					$	115,906					$	463,040
Net interest margin									3.45		%				3.32		%				3.38		%				3.71		%				3.46		%
Net interest margin (fully tax equivalent) (1)									3.49		%				3.36		%				3.44		%				3.77		%				3.51		%
Full-time equivalent employees									2,075						2,065						2,076						2,067
(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

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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						% Change						% Change
			2021						2021						2020						2020						2020						Linked Qtr.						Comp Qtr.
ASSETS
Cash and due from banks			$	206,918					$	210,191					$	231,054					$	207,128					$	283,639					(1.6)		%				(27.0)		%
Interest-bearing deposits with other banks			38,610						19,180						20,305						38,806						38,845						101.3		%				(0.6)		%
Investment securities available-for-sale			3,955,839						3,753,763						3,424,580						3,004,963						2,897,413						5.4		%				36.5		%
Investment securities held-to-maturity			112,456						121,945						131,687						118,072						127,347						(7.8)		%				(11.7)		%
Other investments			129,432						131,814						133,198						118,292						132,366						(1.8)		%				(2.2)		%
Loans held for sale			31,546						34,590						41,103						69,008						43,950						(8.8)		%				(28.2)		%
Loans and leases
Commercial and industrial			2,701,203						3,044,825						3,007,509						3,292,313						3,322,374						(11.3)		%				(18.7)		%
Lease financing			68,229						66,574						72,987						74,742						80,087						2.5		%				(14.8)		%
Construction real estate			630,329						642,709						636,096						575,648						506,085						(1.9)		%				24.6		%
Commercial real estate			4,332,561						4,396,582						4,307,858						4,347,125						4,343,702						(1.5)		%				(0.3)		%
Residential real estate			932,112						946,522						1,003,086						1,027,702						1,043,745						(1.5)		%				(10.7)		%
Home equity			711,756						709,667						743,099						754,743						764,171						0.3		%				(6.9)		%
Installment			89,143						82,421						81,850						84,629						79,150						8.2		%				12.6		%
Credit card			46,177						44,669						48,485						43,907						42,397						3.4		%				8.9		%
Total loans			9,511,510						9,933,969						9,900,970						10,200,809						10,181,711						(4.3)		%				(6.6)		%
Less:
Allowance for credit losses			159,590						169,923						175,679						168,544						158,661						(6.1)		%				0.6		%
Net loans			9,351,920						9,764,046						9,725,291						10,032,265						10,023,050						(4.2)		%				(6.7)		%
Premises and equipment			192,238						204,537						207,211						209,474						211,164						(6.0)		%				(9.0)		%
Goodwill			937,771						937,771						937,771						937,771						937,771						0.0		%				0.0		%
Other intangibles			59,391						61,984						64,552						67,419						70,325						(4.2)		%				(15.5)		%
Accrued interest and other assets			1,021,798						935,250						1,056,382						1,122,449						1,105,020						9.3		%				(7.5)		%
Total Assets			$	16,037,919					$	16,175,071					$	15,973,134					$	15,925,647					$	15,870,890					(0.8)		%				1.1		%
LIABILITIES
Deposits
Interest-bearing demand			$	2,963,151					$	2,914,761					$	2,914,787					$	2,632,467					$	2,657,841					1.7		%				11.5		%
Savings			4,093,229						4,006,181						3,680,774						3,446,678						3,287,314						2.2		%				24.5		%
Time			1,548,109						1,731,757						1,872,733						1,935,392						2,241,212						(10.6)		%				(30.9)		%
Total interest-bearing deposits			8,604,489						8,652,699						8,468,294						8,014,537						8,186,367						(0.6)		%				5.1		%
Noninterest-bearing			3,901,691						3,995,370						3,763,709						3,552,893						3,515,048						(2.3)		%				11.0		%
Total deposits			12,506,180						12,648,069						12,232,003						11,567,430						11,701,415						(1.1)		%				6.9		%
Federal funds purchased and securities sold
under agreements to repurchase			255,791						181,387						166,594						247,658						154,347						41.0		%				65.7		%
FHLB short-term borrowings			217,000						0						0						0						0						100.0		%				100.0		%
Total short-term borrowings			472,791						181,387						166,594						247,658						154,347						160.7		%				206.3		%
Long-term debt			313,039						583,722						776,202						1,341,164						1,285,767						(46.4)		%				(75.7)		%
Total borrowed funds			785,830						765,109						942,796						1,588,822						1,440,114						2.7		%				(45.4)		%
Accrued interest and other liabilities			476,402						502,951						516,265						521,580						508,342						(5.3)		%				(6.3)		%
Total Liabilities			13,768,412						13,916,129						13,691,064						13,677,832						13,649,871						(1.1)		%				0.9		%
SHAREHOLDERS' EQUITY
Common stock			1,635,470						1,633,137						1,638,947						1,637,489						1,635,070						0.1		%				0.0		%
Retained earnings			773,857						745,220						720,429						694,484						675,532						3.8		%				14.6		%
Accumulated other comprehensive income (loss)			30,735						18,101						48,664						42,266						36,431						69.8		%				(15.6)		%
Treasury stock, at cost			(170,555)						(137,516)						(125,970)						(126,424)						(126,014)						24.0		%				35.3		%
Total Shareholders' Equity			2,269,507						2,258,942						2,282,070						2,247,815						2,221,019						0.5		%				2.2		%
Total Liabilities and Shareholders' Equity			$	16,037,919					$	16,175,071					$	15,973,134					$	15,925,647					$	15,870,890					(0.8)		%				1.1		%

6

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FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Quarterly Averages																														Year-to-Date Averages
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,
			2021						2021						2020						2020						2020						2021						2020
ASSETS
Cash and due from banks			$	237,964					$	232,275					$	228,427					$	233,216					$	284,726					$	235,135					$	260,211
Interest-bearing deposits with other banks			45,593						46,912						143,884						40,277						91,990						46,249						65,661
Investment securities			4,130,207						3,782,993						3,403,839						3,162,832						3,164,243						3,957,559						3,139,983
Loans held for sale			28,348						29,689						42,402						45,186						36,592						29,015						24,883
Loans and leases
Commercial and industrial			2,953,185						3,029,716						3,182,749						3,299,259						3,058,677						2,991,239						2,754,785
Lease financing			66,124						70,508						74,107						78,500						81,218						68,304						83,500
Construction real estate			630,351						647,655						608,401						536,870						495,407						638,955						498,439
Commercial real estate			4,372,679						4,339,349						4,313,408						4,364,708						4,381,647						4,356,106						4,295,496
Residential real estate			940,600						980,718						1,022,701						1,041,250						1,052,996						960,548						1,054,226
Home equity			707,409						726,134						752,425						759,994						772,424						716,720						772,753
Installment			84,768						81,377						83,509						82,016						79,016						83,082						80,125
Credit card			48,501						46,709						48,179						45,609						44,402						47,610						47,304
Total loans			9,803,617						9,922,166						10,085,479						10,208,206						9,965,787						9,862,564						9,586,628
Less:
Allowance for credit losses			169,979						177,863						172,201						165,270						155,454						173,899						138,290
Net loans			9,633,638						9,744,303						9,913,278						10,042,936						9,810,333						9,688,665						9,448,338
Premises and equipment			200,558						206,628						208,800						211,454						213,903						203,576						214,724
Goodwill			937,771						937,771						937,771						937,771						937,771						937,771						937,771
Other intangibles			60,929						63,529						66,195						69,169						72,086						62,222						73,550
Accrued interest and other assets			940,461						998,554						1,086,390						1,099,169						1,098,560						969,347						952,192
Total Assets			$	16,215,469					$	16,042,654					$	16,030,986					$	15,842,010					$	15,710,204					$	16,129,539					$	15,117,313
LIABILITIES
Deposits
Interest-bearing demand			$	2,973,930					$	2,948,682					$	2,812,748					$	2,668,635					$	2,602,917					$	2,961,376					$	2,510,555
Savings			4,096,077						3,815,314						3,547,179						3,342,514						3,173,274						3,956,471						3,074,896
Time			1,637,546						1,767,826						1,844,379						2,015,933						2,619,038						1,702,326						2,407,559
Total interest-bearing deposits			8,707,553						8,531,822						8,204,306						8,027,082						8,395,229						8,620,173						7,993,010
Noninterest-bearing			4,003,626						3,840,046						3,720,417						3,535,432						3,335,866						3,922,288						2,989,553
Total deposits			12,711,179						12,371,868						11,924,723						11,562,514						11,731,095						12,542,461						10,982,563
Federal funds purchased and securities sold
under agreements to repurchase			194,478						184,483						136,795						150,088						145,291						189,508						154,692
FHLB short-term borrowings			40,846						67,222						7,937						30,868						548,183						53,961						868,974
Total short-term borrowings			235,324						251,705						144,732						180,956						693,474						243,469						1,023,666
Long-term debt			513,790						634,674						1,162,729						1,338,792						579,345						573,898						480,627
Total borrowed funds			749,114						886,379						1,307,461						1,519,748						1,272,819						817,367						1,504,293
Accrued interest and other liabilities			491,489						511,658						542,740						529,326						520,425						501,518						432,658
Total Liabilities			13,951,782						13,769,905						13,774,924						13,611,588						13,524,339						13,861,346						12,919,514
SHAREHOLDERS' EQUITY
Common stock			1,633,950						1,636,884						1,638,032						1,636,107						1,634,405						1,635,409						1,636,628
Retained earnings			754,456						726,351						703,257						679,980						658,312						740,481						659,210
Accumulated other comprehensive loss			25,832						42,253						40,960						40,697						19,888						33,997						25,544
Treasury stock, at cost			(150,551)						(132,739)						(126,187)						(126,362)						(126,740)						(141,694)						(123,583)
Total Shareholders' Equity			2,263,687						2,272,749						2,256,062						2,230,422						2,185,865						2,268,193						2,197,799
Total Liabilities and Shareholders' Equity			$	16,215,469					$	16,042,654					$	16,030,986					$	15,842,010					$	15,710,204					$	16,129,539					$	15,117,313

7

---

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
						Quarterly Averages																																																																					Year-to-Date Averages
						June 30, 2021												March 31, 2021												June 30, 2020																					June 30, 2021												June 30, 2020
						Balance						Yield						Balance						Yield						Balance						Yield																																							Balance						Yield						Balance						Yield
Earning assets
Investments:
Investment securities						$	4,130,207					2.37		%				$	3,782,993					2.54		%				$	3,164,243					2.97		%																																					$	3,957,559					2.45		%				$	3,139,983					3.02		%
Interest-bearing deposits with other banks						45,593						0.22		%				46,912						0.24		%				91,990						0.20		%																																					46,249						0.23		%				65,661						0.58		%
Gross loans (1)						9,831,965						3.98		%				9,951,855						4.03		%				10,002,379						4.25		%																																					9,891,579						4.00		%				9,611,511						4.65		%
Total earning assets						14,007,765						3.49		%				13,781,760						3.61		%				13,258,612						3.91		%																																					13,895,387						3.55		%				12,817,155						4.23		%
Nonearning assets
Allowance for credit losses						(169,979)												(177,863)												(155,454)																																													(173,899)												(138,290)
Cash and due from banks						237,964												232,275												284,726																																													235,135												260,211
Accrued interest and other assets						2,139,719												2,206,482												2,322,320																																													2,172,916												2,178,237
Total assets						$	16,215,469											$	16,042,654											$	15,710,204																																												$	16,129,539											$	15,117,313
Interest-bearing liabilities
Deposits:
Interest-bearing demand						$	2,973,930					0.07		%				$	2,948,682					0.07		%				$	2,602,917					0.11		%																																					$	2,961,376					0.07		%				$	2,510,555					0.27		%
Savings						4,096,077						0.11		%				3,815,314						0.13		%				3,173,274						0.17		%																																					3,956,471						0.12		%				3,074,896						0.31		%
Time						1,637,546						0.51		%				1,767,826						0.60		%				2,619,038						1.49		%																																					1,702,326						0.56		%				2,407,559						1.68		%
Total interest-bearing deposits						8,707,553						0.17		%				8,531,822						0.21		%				8,395,229						0.56		%																																					8,620,173						0.19		%				7,993,010						0.71		%
Borrowed funds
Short-term borrowings						235,324						0.09		%				251,705						0.11		%				693,474						0.74		%																																					243,469						0.10		%				1,023,666						1.25		%
Long-term debt						513,790						3.23		%				634,674						2.77		%				579,345						3.29		%																																					573,898						2.98		%				480,627						3.58		%
Total borrowed funds						749,114						2.25		%				886,379						2.01		%				1,272,819						1.90		%																																					817,367						2.12		%				1,504,293						2.00		%
Total interest-bearing liabilities						9,456,667						0.33		%				9,418,201						0.38		%				9,668,048						0.74		%																																					9,437,540						0.36		%				9,497,303						0.91		%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits						4,003,626												3,840,046												3,335,866																																													3,922,288												2,989,553
Other liabilities						491,489												511,658												520,425																																													501,518												432,658
Shareholders' equity						2,263,687												2,272,749												2,185,865																																													2,268,193												2,197,799
Total liabilities & shareholders' equity						$	16,215,469											$	16,042,654											$	15,710,204																																												$	16,129,539											$	15,117,313
Net interest income						$	114,026											$	113,876											$	111,576																																												$	227,902											$	225,858
Net interest spread												3.16		%										3.23		%										3.17		%																																											3.19		%										3.32		%
Net interest margin												3.27		%										3.35		%										3.38		%																																											3.31		%										3.54		%
Tax equivalent adjustment												0.04		%										0.05		%										0.06		%																																											0.04		%										0.06		%
Net interest margin (fully tax equivalent)												3.31		%										3.40		%										3.44		%																																											3.35		%										3.60		%
(1) Loans held for sale and nonaccrual loans are included in gross loans.

8

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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						$	(1,551)								$	2,296					$	745					$	(4,723)					$	5,705					$	982					$	(8,880)					$	9,925					$	1,045
Interest-bearing deposits with other banks						(3)									0						(3)						3						(25)						(22)						(114)						(22)						(136)
Gross loans (2)						(1,333)									(104)						(1,437)						(6,716)						(1,690)						(8,406)						(30,812)						5,562						(25,250)
Total earning assets						(2,887)									2,192						(695)						(11,436)						3,990						(7,446)						(39,806)						15,465						(24,341)
Interest-bearing liabilities
Total interest-bearing deposits						$	(754)								$	114					$	(640)					$	(8,190)					$	132					$	(8,058)					$	(20,674)					$	584					$	(20,090)
Borrowed funds
Short-term borrowings						(11)									(3)						(14)						(1,118)						(103)						(1,221)						(5,856)						(385)						(6,241)
Long-term debt						727									(918)						(191)						(89)						(528)						(617)						(1,431)						1,377						(54)
Total borrowed funds						716									(921)						(205)						(1,207)						(631)						(1,838)						(7,287)						992						(6,295)
Total interest-bearing liabilities						(38)									(807)						(845)						(9,397)						(499)						(9,896)						(27,961)						1,576						(26,385)
Net interest income (1)						$	(2,849)								$	2,999					$	150					$	(2,039)					$	4,489					$	2,450					$	(11,845)					$	13,889					$	2,044
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.

9

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FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
																																	Six months ended
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,						June 30,
			2021						2021						2020						2020						2020						2021						2020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period			$	169,923					$	175,679					$	168,544					$	158,661					$	143,885					$	175,679					$	57,650
Day one adoption impact of ASC 326			0						0						0						0						0						0						61,505
Provision for credit losses			(4,756)						3,450						13,758						15,299						17,859						(1,306)						41,739
Gross charge-offs
Commercial and industrial			3,729						7,910						1,505						1,467						1,282						11,639						2,373
Lease financing			0						0						0						852						0						0						0
Construction real estate			0						2						0						0						0						2						0
Commercial real estate			2,041						1,250						6,270						3,789						2,037						3,291						2,041
Residential real estate			46						1						203						22						148						47						263
Home equity			240						611						386						460						428						851						695
Installment			77						36						21						59						7						113						68
Credit card			179						222						169						171						234						401						545
Total gross charge-offs			6,312						10,032						8,554						6,820						4,136						16,344						5,985
Recoveries
Commercial and industrial			205						337						367						265						275						542						2,275
Lease financing			0						0						(6)						6						0						0						0
Construction real estate			3						0						3						0						14						3						14
Commercial real estate			75						195						844						760						424						270						658
Residential real estate			54						44						145						91						93						98						145
Home equity			317						177						428						209						156						494						495
Installment			37						34						65						35						27						71						58
Credit card			44						39						85						38						64						83						107
Total recoveries			735						826						1,931						1,404						1,053						1,561						3,752
Total net charge-offs			5,577						9,206						6,623						5,416						3,083						14,783						2,233
Ending allowance for credit losses			$	159,590					$	169,923					$	175,679					$	168,544					$	158,661					$	159,590					$	158,661
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial			0.48		%				1.01		%				0.14		%				0.14		%				0.13		%				0.75		%				0.01		%
Lease financing			0.00		%				0.00		%				0.03		%				4.29		%				0.00		%				0.00		%				0.00		%
Construction real estate			0.00		%				0.00		%				0.00		%				0.00		%				(0.01)		%				0.00		%				(0.01)		%
Commercial real estate			0.18		%				0.10		%				0.50		%				0.28		%				0.15		%				0.14		%				0.06		%
Residential real estate			0.00		%				(0.02)		%				0.02		%				(0.03)		%				0.02		%				(0.01)		%				0.02		%
Home equity			(0.04)		%				0.24		%				(0.02)		%				0.13		%				0.14		%				0.10		%				0.05		%
Installment			0.19		%				0.01		%				(0.21)		%				0.12		%				(0.10)		%				0.10		%				0.03		%
Credit card			1.12		%				1.59		%				0.69		%				1.16		%				1.54		%				1.35		%				1.86		%
Total net charge-offs			0.23		%				0.38		%				0.26		%				0.21		%				0.12		%				0.30		%				0.05		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial			$	27,426					$	24,941					$	29,230					$	34,686					$	33,906					$	27,426					$	33,906
Lease financing			16						0						0						1,092						1,353						16						1,353
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			45,957						44,514						34,682						24,521						14,002						45,957						14,002
Residential real estate			9,480						11,359						11,601						12,104						12,813						9,480						12,813
Home equity			3,376						4,286						5,076						5,374						5,604						3,376						5,604
Installment			115						146						163						153						201						115						201
Nonaccrual loans			86,370						85,246						80,752						77,930						67,879						86,370						67,879
Accruing troubled debt restructurings (TDRs)			12,070						11,608						7,099						7,759						8,377						12,070						8,377
Total nonperforming loans			98,440						96,854						87,851						85,689						76,256						98,440						76,256
Other real estate owned (OREO)			340						854						1,287						1,643						1,872						340						1,872
Total nonperforming assets			98,780						97,708						89,138						87,332						78,128						98,780						78,128
Accruing loans past due 90 days or more			155						92						169						79						124						155						124
Total underperforming assets			$	98,935					$	97,800					$	89,307					$	87,411					$	78,252					$	98,935					$	78,252
Total classified assets			$	182,516					$	196,782					$	142,021					$	134,002					$	125,543					$	182,516					$	125,543
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans			184.77		%				199.33		%				217.55		%				216.28		%				233.74		%				184.77		%				233.74		%
Nonperforming loans			162.12		%				175.44		%				199.97		%				196.69		%				208.06		%				162.12		%				208.06		%
Total ending loans			1.68		%				1.71		%				1.77		%				1.65		%				1.56		%				1.68		%				1.56		%
Nonperforming loans to total loans			1.03		%				0.97		%				0.89		%				0.84		%				0.75		%				1.03		%				0.75		%
Nonperforming assets to
Ending loans, plus OREO			1.04		%				0.98		%				0.90		%				0.86		%				0.77		%				1.04		%				0.77		%
Total assets			0.62		%				0.60		%				0.56		%				0.55		%				0.49		%				0.62		%				0.49		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO			0.91		%				0.87		%				0.83		%				0.78		%				0.68		%				0.91		%				0.68		%
Total assets			0.54		%				0.53		%				0.51		%				0.50		%				0.44		%				0.54		%				0.44		%
Classified assets to total assets			1.14		%				1.22		%				0.89		%				0.84		%				0.79		%				1.14		%				0.79		%
(1) Nonaccrual loans include nonaccrual TDRs of $21.5 million, $20.9 million, $14.7 million, $29.3 million, and $32.7 million, as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

10

---

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																																	Six months ended,
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,						June 30,
			2021						2021						2020						2020						2020						2021						2020
PER COMMON SHARE
Market Price
High			$	26.02					$	26.40					$	17.77					$	15.15					$	16.38					$	26.40					$	25.52
Low			$	23.35					$	17.62					$	12.07					$	11.40					$	11.52					$	17.62					$	11.52
Close			$	23.63					$	24.00					$	17.53					$	12.01					$	13.89					$	23.63					$	13.89
Average shares outstanding - basic			96,123,645						96,873,940						97,253,787						97,247,080						97,220,748						96,496,720						97,478,719
Average shares outstanding - diluted			97,009,712						97,727,527						98,020,534						98,008,733						97,988,600						97,366,640						98,172,408
Ending shares outstanding			96,199,509						97,517,693						98,021,929						97,999,763						98,018,858						96,199,509						98,018,858
Total shareholders' equity			$	2,269,507					$	2,258,942					$	2,282,070					$	2,247,815					$	2,221,019					$	2,269,507					$	2,221,019
REGULATORY CAPITAL			Preliminary																														Preliminary
Common equity tier 1 capital			$	1,333,209					$	1,334,882					$	1,325,922					$	1,293,716					$	1,267,609					$	1,333,209					$	1,267,609
Common equity tier 1 capital ratio			11.78		%				11.81		%				11.82		%				11.63		%				11.49		%				11.78		%				11.49		%
Tier 1 capital			$	1,376,333					$	1,377,892					$	1,368,818					$	1,336,497					$	1,310,276					$	1,376,333					$	1,310,276
Tier 1 ratio			12.16		%				12.19		%				12.20		%				12.02		%				11.87		%				12.16		%				11.87		%
Total capital			$	1,732,930					$	1,741,755					$	1,744,802					$	1,708,817					$	1,676,532					$	1,732,930					$	1,676,532
Total capital ratio			15.31		%				15.41		%				15.55		%				15.37		%				15.19		%				15.31		%				15.19		%
Total capital in excess of minimum requirement			$	544,478					$	554,834					$	566,795					$	541,263					$	517,902					$	544,478					$	517,902
Total risk-weighted assets			$	11,318,590					$	11,304,012					$	11,219,114					$	11,119,560					$	11,034,570					$	11,318,590					$	11,034,570
Leverage ratio			9.14		%				9.34		%				9.55		%				9.55		%				8.98		%				9.14		%				8.98		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets			14.15		%				13.97		%				14.29		%				14.11		%				13.99		%				14.15		%				13.99		%
Ending tangible shareholders' equity to ending tangible assets (1)			8.37		%				8.22		%				8.47		%				8.25		%				8.09		%				8.37		%				8.09		%
Average shareholders' equity to average assets			13.96		%				14.17		%				14.07		%				14.08		%				13.91		%				14.06		%				14.54		%
Average tangible shareholders' equity to average tangible assets (1)			8.23		%				8.38		%				8.26		%				8.18		%				7.94		%				8.30		%				8.34		%
REPURCHASE PROGRAM (2)
Shares repurchased			1,308,945						840,115						0						0						0						2,149,060						880,000
Average share repurchase price			$	25.11					$	21.40					N/A						N/A						N/A						$	23.66					$	18.96
Total cost of shares repurchased			$	32,864					$	17.982					N/A						N/A						N/A						$	50,846					$	16,686
(1) Non-GAAP measure. 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.
(2) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable

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