EX-99.1 2 a8k3q21earningsreleaseex991.htm EX-99.1

                                                Exhibit 99.1

                                        

First Financial Bancorp Announces Third Quarter 2021 Financial Results

•Earnings per diluted share of $0.63 and on both GAAP and adjusted(1) basis

•Return on average assets of 1.49% on both GAAP and adjusted(1) basis

•Net interest margin FTE(1) of 3.32%

•Loan growth of $74.8 million, excluding decline in PPP loans

•Provision recapture of $10.1 million

•Repurchased 2,484,295 shares during the quarter

Cincinnati, Ohio - October 21, 2021 First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and nine months ended September 30, 2021.

For the three months ended September 30, 2021, the Company reported net income of $60.0 million, or $0.63 per diluted common share. These results compare to net income of $50.9 million, or $0.52 per diluted common share, for the second quarter of 2021 and $41.5 million, or $0.42 per diluted common share, for the third quarter of 2020. For the nine months ended September 30, 2021, First Financial had earnings per diluted common share of $1.64 compared to $1.10 for the same period in 2020.

Return on average assets for the third quarter of 2021 was 1.49% while return on average tangible common equity was 19.03%(1). These compare to returns on average assets of 1.26% and 1.04%, and returns on average tangible common equity of 16.31%(1) and 13.61%(1), in the second quarter of 2021 and the third quarter of 2020, respectively.

Third quarter 2021 highlights include:

•Net interest margin of 3.32% on a fully tax-equivalent basis(1) in line with expectations

◦1 basis point increase from linked quarter driven by PPP forgiveness, which offset lower yields on earning assets

•Noninterest income of $42.5 million, or $42.2 million as adjusted(1)

◦Strong mortgage banking income of $8.6 million driven by higher premiums during the period

◦Elevated wealth management fees of $5.9 million

◦Other noninterest income increased $1.1 million, or 34.3%; driven by income from limited partnership investments and insurance proceeds

•Noninterest expenses of $99.1 million, or $93.6 million as adjusted(1)

◦Adjustments(1) include:

▪$5.3 million of tax credit investment write-downs

◦Increase in expenses driven by incentive compensation tied to the Company's strong financial performance and modest increases in marketing costs and professional services

◦Efficiency ratio of 63.5%; 60.1% as adjusted(1)

•Loan balances declined $150.6 million from the second quarter driven by PPP forgiveness of $225.4 million during the quarter

◦Core loan balances increased $74.8 million, or 3.3% on an annualized basis compared to the second quarter

◦Non-PPP C&I loan balances increased 16.0% on an annualized basis

________________________________________________________________________________________

(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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•Total Allowance for Credit Losses of $160.5 million; Total quarterly provision recapture of $10.1 million

◦Loans and leases - ACL of $148.9 million, 1.59% of total loans; 1.62% of loans excluding PPP

◦Unfunded Commitments - ACL of $11.6 million

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

•Strong capital ratios

◦Total capital of 14.97%

◦Tier 1 common equity of 11.54%

◦Tangible common equity of 8.21%(1); 8.31%(1) excluding PPP loans

◦Tangible book value per share of $13.09(1)

◦Repurchased 2,484,295 shares during third quarter; 4,633,355 shares repurchased in 2021

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

Mr. Brown continued, “Third quarter results were strong across the board, with earnings per share of $0.63, return on assets of 1.49% and an adjusted(1) efficiency ratio of 60.1%. Third quarter earnings were the highest they’ve been since the MainSource merger in 2018, and were highlighted by significant provision recapture of $10.1 million. Provision recapture during the period was a result of improving credit quality trends, specifically, lower net charge-offs and declines in classified asset balances, and we expect further reductions in credit costs in the fourth quarter of 2021 and the first part of 2022 given our optimism for further economic recovery. In addition, earnings were positively impacted by elevated mortgage and wealth management revenues and we were encouraged by strong loan originations during the period."

Mr. Brown added, “Total loan balances declined $150.6 million driven by $225.4 million in PPP forgiveness during the quarter. Core loan balances increased $74.8 million for the period as a result of strong origination activity, which included 16.0% growth in the C&I portfolio on an annualized basis. Our origination levels more than offset loan payoffs which remained high, particularly in our specialty finance and ICRE units. Additionally, we are encouraged that loan pipeline activity has increased.”

Mr. Brown commented regarding the share repurchase program, “During the quarter we repurchased approximately 2.5 million shares at an average price of $23.04 bringing our total shares repurchased in 2021 to 4.6 million. When combined with the common dividend, the share repurchases approximate a return to shareholders of 131.7% of quarterly earnings. There are 366,645 shares remaining in our current buyback authorization.”

Mr. Brown concluded, “We were also very pleased to bring our associates back to our physical office locations during the quarter, albeit with greater flexibility than pre-Covid. We firmly believe we are stronger when we are together, and we have already witnessed how combining best practices learned from the pandemic with our culture of collaboration positively impacts our clients and financial performance.”

Full detail of the Company’s third quarter 2021 performance is provided in the accompanying financial statements and slide presentation.

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Teleconference / Webcast Information

First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, October 22, 2021 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (833) 950-0062 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 674818. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (866) 813-9403 (U.S. toll free), (929) 458-6194 (U.S. local) and +44 204 525-0658 (all other locations), access code 979537. The recording will be available until November 5, 2021. 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. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

Press Release and Additional Information on Website

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

Use of Non-GAAP Financial Measures

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

Forward-Looking Statements

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;  

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•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.

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 September 30, 2021, the Company had $16.0 billion in assets, $9.4 billion in loans, $12.7 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 $3.2 billion in assets under management as of September 30, 2021. The Company operated 139 full service banking centers as of September 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

September 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,																														Nine months ended,
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						September 30,
			2021						2021						2021						2020						2020						2021						2020
RESULTS OF OPERATIONS
Net income			$	60,012					$	50,888					$	47,315					$	48,312					$	41,477					$	158,215					$	107,498
Net earnings per share - basic			$	0.64					$	0.53					$	0.49					$	0.50					$	0.43					$	1.65					$	1.10
Net earnings per share - diluted			$	0.63					$	0.52					$	0.48					$	0.49					$	0.42					$	1.64					$	1.10
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.23					$	0.69					$	0.69
KEY FINANCIAL RATIOS
Return on average assets			1.49		%				1.26		%				1.20		%				1.20		%				1.04		%				1.32		%				0.93		%
Return on average shareholders' equity			10.53		%				9.02		%				8.44		%				8.52		%				7.40		%				9.34		%				6.50		%
Return on average tangible shareholders' equity (1)			19.03		%				16.31		%				15.24		%				15.50		%				13.61		%				16.87		%				12.08		%
Net interest margin			3.28		%				3.27		%				3.35		%				3.45		%				3.32		%				3.30		%				3.46		%
Net interest margin (fully tax equivalent) (1)(2)			3.32		%				3.31		%				3.40		%				3.49		%				3.36		%				3.34		%				3.52		%
Ending shareholders' equity as a percent of ending assets			14.01		%				14.15		%				13.97		%				14.29		%				14.11		%				14.01		%				14.11		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)			8.21		%				8.37		%				8.22		%				8.47		%				8.25		%				8.21		%				8.25		%
Risk-weighted assets (1)			10.76		%				11.12		%				11.02		%				11.29		%				11.07		%				10.76		%				11.07		%
Average shareholders' equity as a percent of average assets			14.14		%				13.96		%				14.17		%				14.07		%				14.08		%				14.09		%				14.38		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)			8.35		%				8.23		%				8.38		%				8.26		%				8.18		%				8.32		%				8.29		%
Book value per share			$	23.85					$	23.59					$	23.16					$	23.28					$	22.94					$	23.85					$	22.94
Tangible book value per share (1)			$	13.09					$	13.08					$	12.78					$	12.93					$	12.56					$	13.09					$	12.56
Common equity tier 1 ratio (3)			11.54		%				11.78		%				11.81		%				11.82		%				11.63		%				11.54		%				11.63		%
Tier 1 ratio (3)			11.92		%				12.16		%				12.19		%				12.20		%				12.02		%				11.92		%				12.02		%
Total capital ratio (3)			14.97		%				15.31		%				15.41		%				15.55		%				15.37		%				14.97		%				15.37		%
Leverage ratio (3)			9.05		%				9.14		%				9.34		%				9.55		%				9.55		%				9.05		%				9.55		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)			$	9,502,750					$	9,831,965					$	9,951,855					$	10,127,881					$	10,253,392					$	9,760,545					$	9,827,033
Investment securities			4,189,253						4,130,207						3,782,993						3,403,839						3,162,832						4,035,639						3,147,655
Interest-bearing deposits with other banks			32,400						45,593						46,912						143,884						40,277						41,582						57,138
Total earning assets			$	13,724,403					$	14,007,765					$	13,781,760					$	13,675,604					$	13,456,501					$	13,837,766					$	13,031,826
Total assets			$	15,995,808					$	16,215,469					$	16,042,654					$	16,030,986					$	15,842,010					$	16,084,472					$	15,360,642
Noninterest-bearing deposits			$	3,981,404					$	4,003,626					$	3,840,046					$	3,720,417					$	3,535,432					$	3,942,210					$	3,172,841
Interest-bearing deposits			8,685,949						8,707,553						8,531,822						8,204,306						8,027,082						8,642,339						8,004,450
Total deposits			$	12,667,353					$	12,711,179					$	12,371,868					$	11,924,723					$	11,562,514					$	12,584,549					$	11,177,291
Borrowings			$	562,964					$	749,114					$	886,379					$	1,307,461					$	1,519,748					$	731,634					$	1,509,482
Shareholders' equity			$	2,261,293					$	2,263,687					$	2,272,749					$	2,256,062					$	2,230,422					$	2,265,868					$	2,208,753
CREDIT QUALITY RATIOS
Allowance to ending loans			1.59		%				1.68		%				1.71		%				1.77		%				1.65		%				1.59		%				1.65		%
Allowance to nonaccrual loans			225.73		%				184.77		%				199.33		%				217.55		%				216.28		%				225.73		%				216.28		%
Allowance to nonperforming loans			192.35		%				162.12		%				175.44		%				199.97		%				196.69		%				192.35		%				196.69		%
Nonperforming loans to total loans			0.83		%				1.03		%				0.97		%				0.89		%				0.84		%				0.83		%				0.84		%
Nonperforming assets to ending loans, plus OREO			0.83		%				1.04		%				0.98		%				0.90		%				0.86		%				0.83		%				0.86		%
Nonperforming assets to total assets			0.49		%				0.62		%				0.60		%				0.56		%				0.55		%				0.49		%				0.55		%
Classified assets to total assets			1.04		%				1.14		%				1.22		%				0.89		%				0.84		%				1.04		%				0.84		%
Net charge-offs to average loans (annualized)			0.10		%				0.23		%				0.38		%				0.26		%				0.21		%				0.24		%				0.10		%

(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) September 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,																		Nine months ended,
			September 30,																		September 30,
			2021						2020						% Change						2021						2020						% Change
Interest income
Loans and leases, including fees			$	96,428					$	103,249					(6.6)		%				$	292,853					$	324,924					(9.9)		%
Investment securities
Taxable			20,088						17,906						12.2		%				58,219						55,387						5.1		%
Tax-exempt			4,282						4,884						(12.3)		%				14,196						14,403						(1.4)		%
Total investment securities interest			24,370						22,790						6.9		%				72,415						69,790						3.8		%
Other earning assets			23						31						(25.8)		%				76						220						(65.5)		%
Total interest income			120,821						126,070						(4.2)		%				365,344						394,934						(7.5)		%
Interest expense
Deposits			3,320						7,886						(57.9)		%				11,346						36,002						(68.5)		%
Short-term borrowings			68						51						33.3		%				188						6,412						(97.1)		%
Long-term borrowings			4,023						5,953						(32.4)		%				12,498						14,482						(13.7)		%
Total interest expense			7,411						13,890						(46.6)		%				24,032						56,896						(57.8)		%
Net interest income			113,410						112,180						1.1		%				341,312						338,038						1.0		%
Provision for credit losses-loans and leases			(8,193)						15,299						(153.6)		%				(9,499)						57,038						(116.7)		%
Provision for credit losses-unfunded commitments			(1,951)						(1,925)						1.4		%				(896)						2,013						(144.5)		%
Net interest income after provision for credit losses			123,554						98,806						25.0		%				351,707						278,987						26.1		%
Noninterest income
Service charges on deposit accounts			8,548						7,356						16.2		%				23,231						21,792						6.6		%
Trust and wealth management fees			5,896						4,940						19.4		%				17,742						15,891						11.6		%
Bankcard income			3,838						3,124						22.9		%				10,698						8,666						23.4		%
Client derivative fees			2,273						2,203						3.2		%				5,624						8,292						(32.2)		%
Foreign exchange income			9,191						10,530						(12.7)		%				31,985						27,072						18.1		%
Net gains from sales of loans			8,586						18,594						(53.8)		%				26,529						38,087						(30.3)		%
Net gains (losses) on sale of investment securities			(314)						2						N/M						(745)						(55)						N/M
Unrealized gain (loss) on equity securities			108						18						N/M						381						70						N/M
Other			4,411						2,732						61.5		%				10,401						7,793						33.5		%
Total noninterest income			42,537						49,499						(14.1)		%				125,846						127,608						(1.4)		%
Noninterest expenses
Salaries and employee benefits			61,717						63,769						(3.2)		%				183,754						174,516						5.3		%
Net occupancy			5,571						5,625						(1.0)		%				16,810						17,107						(1.7)		%
Furniture and equipment			3,318						3,638						(8.8)		%				10,658						11,372						(6.3)		%
Data processing			7,951						6,837						16.3		%				23,102						20,245						14.1		%
Marketing			2,435						1,856						31.2		%				5,831						4,415						32.1		%
Communication			669						855						(21.8)		%				2,253						2,652						(15.0)		%
Professional services			2,199						2,443						(10.0)		%				5,678						6,923						(18.0)		%
State intangible tax			1,202						1,514						(20.6)		%				3,605						4,544						(20.7)		%
FDIC assessments			1,466						1,350						8.6		%				4,177						4,045						3.3		%
Intangible amortization			2,479						2,779						(10.8)		%				7,438						8,362						(11.0)		%
Other			10,051						6,845						46.8		%				27,901						21,685						28.7		%
Total noninterest expenses			99,058						97,511						1.6		%				291,207						275,866						5.6		%
Income before income taxes			67,033						50,794						32.0		%				186,346						130,729						42.5		%
Income tax expense			7,021						9,317						(24.6)		%				28,131						23,231						21.1		%
Net income			$	60,012					$	41,477					44.7		%				$	158,215					$	107,498					47.2		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.64					$	0.43											$	1.65					$	1.10
Net earnings per share - diluted			$	0.63					$	0.42											$	1.64					$	1.10
Dividends declared per share			$	0.23					$	0.23											$	0.69					$	0.69
Return on average assets			1.49		%				1.04		%										1.32		%				0.93		%
Return on average shareholders' equity			10.53		%				7.40		%										9.34		%				6.50		%
Interest income			$	120,821					$	126,070					(4.2)		%				$	365,344					$	394,934					(7.5)		%
Tax equivalent adjustment			1,434						1,628						(11.9)		%				4,705						4,916						(4.3)		%
Interest income - tax equivalent			122,255						127,698						(4.3)		%				370,049						399,850						(7.5)		%
Interest expense			7,411						13,890						(46.6)		%				24,032						56,896						(57.8)		%
Net interest income - tax equivalent			$	114,844					$	113,808					0.9		%				$	346,017					$	342,954					0.9		%
Net interest margin			3.28		%				3.32		%										3.30		%				3.46		%
Net interest margin (fully tax equivalent) (1)			3.32		%				3.36		%										3.34		%				3.52		%
Full-time equivalent employees			2,026						2,065
(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
									Third						Second						First						Year to						% Change
									Quarter						Quarter						Quarter						Date						Linked Qtr.
Interest income
Loans and leases, including fees									$	96,428					$	97,494					$	98,931					$	292,853					(1.1)		%
Investment securities
Taxable									20,088						19,524						18,607						58,219						2.9		%
Tax-exempt									4,282						4,871						5,043						14,196						(12.1)		%
Total investment securities interest									24,370						24,395						23,650						72,415						(0.1)		%
Other earning assets									23						25						28						76						(8.0)		%
Total interest income									120,821						121,914						122,609						365,344						(0.9)		%
Interest expense
Deposits									3,320						3,693						4,333						11,346						(10.1)		%
Short-term borrowings									68						53						67						188						28.3		%
Long-term borrowings									4,023						4,142						4,333						12,498						(2.9)		%
Total interest expense									7,411						7,888						8,733						24,032						(6.0)		%
Net interest income									113,410						114,026						113,876						341,312						(0.5)		%
Provision for credit losses-loans and leases									(8,193)						(4,756)						3,450						(9,499)						72.3		%
Provision for credit losses-unfunded commitments									(1,951)						517						538						(896)						(477.4)		%
Net interest income after provision for credit losses									123,554						118,265						109,888						351,707						4.5		%
Noninterest income
Service charges on deposit accounts									8,548						7,537						7,146						23,231						13.4		%
Trust and wealth management fees									5,896						6,216						5,630						17,742						(5.1)		%
Bankcard income									3,838						3,732						3,128						10,698						2.8		%
Client derivative fees									2,273						1,795						1,556						5,624						26.6		%
Foreign exchange income									9,191						12,037						10,757						31,985						(23.6)		%
Net gains from sales of loans									8,586						8,489						9,454						26,529						1.1		%
Net gains (losses) on sale of investment securities									(314)						(265)						(166)						(745)						18.5		%
Unrealized gain (loss) on equity securities									108						161						112						381						(32.9)		%
Other									4,411						3,285						2,705						10,401						34.3		%
Total noninterest income									42,537						42,987						40,322						125,846						(1.0)		%
Noninterest expenses
Salaries and employee benefits									61,717						60,784						61,253						183,754						1.5		%
Net occupancy									5,571						5,535						5,704						16,810						0.7		%
Furniture and equipment									3,318						3,371						3,969						10,658						(1.6)		%
Data processing									7,951						7,864						7,287						23,102						1.1		%
Marketing									2,435						2,035						1,361						5,831						19.7		%
Communication									669						746						838						2,253						(10.3)		%
Professional services									2,199						2,029						1,450						5,678						8.4		%
State intangible tax									1,202						1,201						1,202						3,605						0.1		%
FDIC assessments									1,466						1,362						1,349						4,177						7.6		%
Intangible amortization									2,479						2,480						2,479						7,438						0.0		%
Other									10,051						12,236						5,614						27,901						(17.9)		%
Total noninterest expenses									99,058						99,643						92,506						291,207						(0.6)		%
Income before income taxes									67,033						61,609						57,704						186,346						8.8		%
Income tax expense									7,021						10,721						10,389						28,131						(34.5)		%
Net income									$	60,012					$	50,888					$	47,315					$	158,215					17.9		%
ADDITIONAL DATA
Net earnings per share - basic									$	0.64					$	0.53					$	0.49					$	1.65
Net earnings per share - diluted									$	0.63					$	0.52					$	0.48					$	1.64
Dividends declared per share									$	0.23					$	0.23					$	0.23					$	0.69
Return on average assets									1.49		%				1.26		%				1.20		%				1.32		%
Return on average shareholders' equity									10.53		%				9.02		%				8.44		%				9.34		%
Interest income									$	120,821					$	121,914					$	122,609					$	365,344					(0.9)		%
Tax equivalent adjustment									1,434						1,619						1,652						4,705						(11.4)		%
Interest income - tax equivalent									122,255						123,533						124,261						370,049						(1.0)		%
Interest expense									7,411						7,888						8,733						24,032						(6.0)		%
Net interest income - tax equivalent									$	114,844					$	115,645					$	115,528					$	346,017					(0.7)		%
Net interest margin									3.28		%				3.27		%				3.35		%				3.30		%
Net interest margin (fully tax equivalent) (1)									3.32		%				3.31		%				3.40		%				3.34		%
Full-time equivalent employees									2,026						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

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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)
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						% Change						% Change
			2021						2021						2021						2020						2020						Linked Qtr.						Comp Qtr.
ASSETS
Cash and due from banks			$	209,748					$	206,918					$	210,191					$	231,054					$	207,128					1.4		%				1.3		%
Interest-bearing deposits with other banks			29,799						38,610						19,180						20,305						38,806						(22.8)		%				(23.2)		%
Investment securities available-for-sale			4,114,094						3,955,839						3,753,763						3,424,580						3,004,963						4.0		%				36.9		%
Investment securities held-to-maturity			103,886						112,456						121,945						131,687						118,072						(7.6)		%				(12.0)		%
Other investments			97,831						129,432						131,814						133,198						118,292						(24.4)		%				(17.3)		%
Loans held for sale			33,835						31,546						34,590						41,103						69,008						7.3		%				(51.0)		%
Loans and leases
Commercial and industrial			2,602,848						2,701,203						3,044,825						3,007,509						3,292,313						(3.6)		%				(20.9)		%
Lease financing			67,855						68,229						66,574						72,987						74,742						(0.5)		%				(9.2)		%
Construction real estate			477,004						630,329						642,709						636,096						575,648						(24.3)		%				(17.1)		%
Commercial real estate			4,438,374						4,332,561						4,396,582						4,307,858						4,347,125						2.4		%				2.1		%
Residential real estate			922,492						932,112						946,522						1,003,086						1,027,702						(1.0)		%				(10.2)		%
Home equity			709,050						711,756						709,667						743,099						754,743						(0.4)		%				(6.1)		%
Installment			96,077						89,143						82,421						81,850						84,629						7.8		%				13.5		%
Credit card			47,231						46,177						44,669						48,485						43,907						2.3		%				7.6		%
Total loans			9,360,931						9,511,510						9,933,969						9,900,970						10,200,809						(1.6)		%				(8.2)		%
Less:
Allowance for credit losses			(148,903)						(159,590)						(169,923)						(175,679)						(168,544)						(6.7)		%				(11.7)		%
Net loans			9,212,028						9,351,920						9,764,046						9,725,291						10,032,265						(1.5)		%				(8.2)		%
Premises and equipment			192,580						192,238						204,537						207,211						209,474						0.2		%				(8.1)		%
Goodwill			937,771						937,771						937,771						937,771						937,771						0.0		%				0.0		%
Other intangibles			56,811						59,391						61,984						64,552						67,419						(4.3)		%				(15.7)		%
Accrued interest and other assets			968,210						1,021,798						935,250						1,056,382						1,122,449						(5.2)		%				(13.7)		%
Total Assets			$	15,956,593					$	16,037,919					$	16,175,071					$	15,973,134					$	15,925,647					(0.5)		%				0.2		%
LIABILITIES
Deposits
Interest-bearing demand			$	2,916,860					$	2,963,151					$	2,914,761					$	2,914,787					$	2,632,467					(1.6)		%				10.8		%
Savings			4,223,905						4,093,229						4,006,181						3,680,774						3,446,678						3.2		%				22.6		%
Time			1,517,419						1,548,109						1,731,757						1,872,733						1,935,392						(2.0)		%				(21.6)		%
Total interest-bearing deposits			8,658,184						8,604,489						8,652,699						8,468,294						8,014,537						0.6		%				8.0		%
Noninterest-bearing			4,019,197						3,901,691						3,995,370						3,763,709						3,552,893						3.0		%				13.1		%
Total deposits			12,677,381						12,506,180						12,648,069						12,232,003						11,567,430						1.4		%				9.6		%
Federal funds purchased and securities sold
under agreements to repurchase			81,850						255,791						181,387						166,594						247,658						(68.0)		%				(67.0)		%
FHLB short-term borrowings			107,000						217,000						0						0						0						(50.7)		%				100.0		%
Total short-term borrowings			188,850						472,791						181,387						166,594						247,658						(60.1)		%				(23.7)		%
Long-term debt			313,230						313,039						583,722						776,202						1,341,164						0.1		%				(76.6)		%
Total borrowed funds			502,080						785,830						765,109						942,796						1,588,822						(36.1)		%				(68.4)		%
Accrued interest and other liabilities			540,962						476,402						502,951						516,265						521,580						13.6		%				3.7		%
Total Liabilities			13,720,423						13,768,412						13,916,129						13,691,064						13,677,832						(0.3)		%				0.3		%
SHAREHOLDERS' EQUITY
Common stock			1,637,065						1,635,470						1,633,137						1,638,947						1,637,489						0.1		%				0.0		%
Retained earnings			812,082						773,857						745,220						720,429						694,484						4.9		%				16.9		%
Accumulated other comprehensive income (loss)			14,230						30,735						18,101						48,664						42,266						(53.7)		%				(66.3)		%
Treasury stock, at cost			(227,207)						(170,555)						(137,516)						(125,970)						(126,424)						33.2		%				79.7		%
Total Shareholders' Equity			2,236,170						2,269,507						2,258,942						2,282,070						2,247,815						(1.5)		%				(0.5)		%
Total Liabilities and Shareholders' Equity			$	15,956,593					$	16,037,919					$	16,175,071					$	15,973,134					$	15,925,647					(0.5)		%				0.2		%

6

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FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Quarterly Averages																														Year-to-Date Averages
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						Sep. 30,
			2021						2021						2021						2020						2020						2021						2020
ASSETS
Cash and due from banks			$	245,212					$	237,964					$	232,275					$	228,427					$	233,216					$	238,531					$	251,147
Interest-bearing deposits with other banks			32,400						45,593						46,912						143,884						40,277						41,582						57,138
Investment securities			4,189,253						4,130,207						3,782,993						3,403,839						3,162,832						4,035,639						3,147,655
Loans held for sale			28,365						28,348						29,689						42,402						45,186						28,796						31,700
Loans and leases
Commercial and industrial			2,634,306						2,953,185						3,029,716						3,182,749						3,299,259						2,870,954						2,937,601
Lease financing			67,159						66,124						70,508						74,107						78,500						67,918						81,821
Construction real estate			567,091						630,351						647,655						608,401						536,870						614,737						511,343
Commercial real estate			4,413,003						4,372,679						4,339,349						4,313,408						4,364,708						4,375,280						4,318,735
Residential real estate			937,969						940,600						980,718						1,022,701						1,041,250						952,939						1,049,869
Home equity			710,794						707,409						726,134						752,425						759,994						714,723						768,469
Installment			93,937						84,768						81,377						83,509						82,016						86,740						80,760
Credit card			50,126						48,501						46,709						48,179						45,609						48,458						46,735
Total loans			9,474,385						9,803,617						9,922,166						10,085,479						10,208,206						9,731,749						9,795,333
Less:
Allowance for credit losses			(157,727)						(169,979)						(177,863)						(172,201)						(165,270)						(168,449)						(147,349)
Net loans			9,316,658						9,633,638						9,744,303						9,913,278						10,042,936						9,563,300						9,647,984
Premises and equipment			193,775						200,558						206,628						208,800						211,454						200,273						213,626
Goodwill			937,771						937,771						937,771						937,771						937,771						937,771						937,771
Other intangibles			58,314						60,929						63,529						66,195						69,169						60,905						72,079
Accrued interest and other assets			994,060						940,461						998,554						1,086,390						1,099,169						977,675						1,001,542
Total Assets			$	15,995,808					$	16,215,469					$	16,042,654					$	16,030,986					$	15,842,010					$	16,084,472					$	15,360,642
LIABILITIES
Deposits
Interest-bearing demand			$	2,960,388					$	2,973,930					$	2,948,682					$	2,812,748					$	2,668,635					$	2,961,043					$	2,563,633
Savings			4,150,610						4,096,077						3,815,314						3,547,179						3,342,514						4,021,895						3,164,753
Time			1,574,951						1,637,546						1,767,826						1,844,379						2,015,933						1,659,401						2,276,064
Total interest-bearing deposits			8,685,949						8,707,553						8,531,822						8,204,306						8,027,082						8,642,339						8,004,450
Noninterest-bearing			3,981,404						4,003,626						3,840,046						3,720,417						3,535,432						3,942,210						3,172,841
Total deposits			12,667,353						12,711,179						12,371,868						11,924,723						11,562,514						12,584,549						11,177,291
Federal funds purchased and securities sold
under agreements to repurchase			186,401						194,478						184,483						136,795						150,088						188,461						153,146
FHLB short-term borrowings			63,463						40,846						67,222						7,937						30,868						57,163						587,566
Total short-term borrowings			249,864						235,324						251,705						144,732						180,956						245,624						740,712
Long-term debt			313,100						513,790						634,674						1,162,729						1,338,792						486,010						768,770
Total borrowed funds			562,964						749,114						886,379						1,307,461						1,519,748						731,634						1,509,482
Accrued interest and other liabilities			504,198						491,489						511,658						542,740						529,326						502,421						465,116
Total Liabilities			13,734,515						13,951,782						13,769,905						13,774,924						13,611,588						13,818,604						13,151,889
SHAREHOLDERS' EQUITY
Common stock			1,635,833						1,633,950						1,636,884						1,638,032						1,636,107						1,635,552						1,636,453
Retained earnings			783,760						754,456						726,351						703,257						679,980						755,066						666,184
Accumulated other comprehensive loss			36,917						25,832						42,253						40,960						40,697						34,981						30,632
Treasury stock, at cost			(195,217)						(150,551)						(132,739)						(126,187)						(126,362)						(159,731)						(124,516)
Total Shareholders' Equity			2,261,293						2,263,687						2,272,749						2,256,062						2,230,422						2,265,868						2,208,753
Total Liabilities and Shareholders' Equity			$	15,995,808					$	16,215,469					$	16,042,654					$	16,030,986					$	15,842,010					$	16,084,472					$	15,360,642

7

---

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
						Quarterly Averages																																																																					Year-to-Date Averages
						September 30, 2021												June 30, 2021												September 30, 2020																					September 30, 2021												September 30, 2020
						Balance						Yield						Balance						Yield						Balance						Yield																																							Balance						Yield						Balance						Yield
Earning assets
Investments:
Investment securities						$	4,189,253					2.31		%				$	4,130,207					2.37		%				$	3,162,832					2.86		%																																					$	4,035,639					2.40		%				$	3,147,655					2.96		%
Interest-bearing deposits with other banks						32,400						0.28		%				45,593						0.22		%				40,277						0.31		%																																					41,582						0.24		%				57,138						0.51		%
Gross loans (1)						9,502,750						4.03		%				9,831,965						3.98		%				10,253,392						4.00		%																																					9,760,545						4.01		%				9,827,033						4.42		%
Total earning assets						13,724,403						3.49		%				14,007,765						3.49		%				13,456,501						3.72		%																																					13,837,766						3.53		%				13,031,826						4.05		%
Nonearning assets
Allowance for credit losses						(157,727)												(169,979)												(165,270)																																													(168,449)												(147,349)
Cash and due from banks						245,212												237,964												233,216																																													238,531												251,147
Accrued interest and other assets						2,183,920												2,139,719												2,317,563																																													2,176,624												2,225,018
Total assets						$	15,995,808											$	16,215,469											$	15,842,010																																												$	16,084,472											$	15,360,642
Interest-bearing liabilities
Deposits:
Interest-bearing demand						$	2,960,388					0.06		%				$	2,973,930					0.07		%				$	2,668,635					0.08		%																																					$	2,961,043					0.07		%				$	2,563,633					0.21		%
Savings						4,150,610						0.09		%				4,096,077						0.11		%				3,342,514						0.14		%																																					4,021,895						0.11		%				3,164,753						0.25		%
Time						1,574,951						0.49		%				1,637,546						0.51		%				2,015,933						1.20		%																																					1,659,401						0.54		%				2,276,064						1.54		%
Total interest-bearing deposits						8,685,949						0.15		%				8,707,553						0.17		%				8,027,082						0.39		%																																					8,642,339						0.18		%				8,004,450						0.60		%
Borrowed funds
Short-term borrowings						249,864						0.11		%				235,324						0.09		%				180,956						0.11		%																																					245,624						0.10		%				740,712						1.16		%
Long-term debt						313,100						5.10		%				513,790						3.23		%				1,338,792						1.76		%																																					486,010						3.44		%				768,770						2.52		%
Total borrowed funds						562,964						2.88		%				749,114						2.25		%				1,519,748						1.57		%																																					731,634						2.32		%				1,509,482						1.85		%
Total interest-bearing liabilities						9,248,913						0.32		%				9,456,667						0.33		%				9,546,830						0.58		%																																					9,373,973						0.34		%				9,513,932						0.80		%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits						3,981,404												4,003,626												3,535,432																																													3,942,210												3,172,841
Other liabilities						504,198												491,489												529,326																																													502,421												465,116
Shareholders' equity						2,261,293												2,263,687												2,230,422																																													2,265,868												2,208,753
Total liabilities & shareholders' equity						$	15,995,808											$	16,215,469											$	15,842,010																																												$	16,084,472											$	15,360,642
Net interest income						$	113,410											$	114,026											$	112,180																																												$	341,312											$	338,038
Net interest spread												3.17		%										3.16		%										3.14		%																																											3.19		%										3.25		%
Net interest margin												3.28		%										3.27		%										3.32		%																																											3.30		%										3.46		%
Tax equivalent adjustment												0.04		%										0.04		%										0.04		%																																											0.04		%										0.06		%
Net interest margin (fully tax equivalent)												3.32		%										3.31		%										3.36		%																																											3.34		%										3.52		%
(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						$	(630)								$	605					$	(25)					$	(4,391)					$	5,971					$	1,580					$	(13,309)					$	15,934					$	2,625
Interest-bearing deposits with other banks						7									(9)						(2)						(2)						(6)						(8)						(116)						(28)						(144)
Gross loans (2)						1,190									(2,256)						(1,066)						796						(7,617)						(6,821)						(30,076)						(1,995)						(32,071)
Total earning assets						567									(1,660)						(1,093)						(3,597)						(1,652)						(5,249)						(43,501)						13,911						(29,590)
Interest-bearing liabilities
Total interest-bearing deposits						$	(401)								$	28					$	(373)					$	(4,818)					$	252					$	(4,566)					$	(25,493)					$	837					$	(24,656)
Borrowed funds
Short-term borrowings						10									5						15						(2)						19						17						(5,845)						(379)						(6,224)
Long-term debt						2,388									(2,507)						(119)						11,249						(13,179)						(1,930)						5,287						(7,271)						(1,984)
Total borrowed funds						2,398									(2,502)						(104)						11,247						(13,160)						(1,913)						(558)						(7,650)						(8,208)
Total interest-bearing liabilities						1,997									(2,474)						(477)						6,429						(12,908)						(6,479)						(26,051)						(6,813)						(32,864)
Net interest income (1)						$	(1,430)								$	814					$	(616)					$	(10,026)					$	11,256					$	1,230					$	(17,450)					$	20,724					$	3,274
(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)
																																	Nine months ended
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						Sep. 30,						Sep. 30,
			2021						2021						2021						2020						2020						2021						2020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period			$	159,590					$	169,923					$	175,679					$	168,544					$	158,661					$	175,679					$	57,650
Day one adoption impact of ASC 326			0						0						0						0						0						0						61,505
Provision for credit losses			(8,193)						(4,756)						3,450						13,758						15,299						(9,499)						57,038
Gross charge-offs
Commercial and industrial			2,617						3,729						7,910						1,505						1,467						14,256						3,840
Lease financing			0						0						0						0						852						0						852
Construction real estate			0						0						2						0						0						2						0
Commercial real estate			1,030						2,041						1,250						6,270						3,789						4,321						5,830
Residential real estate			74						46						1						203						22						121						285
Home equity			200						240						611						386						460						1,051						1,155
Installment			37						77						36						21						59						150						127
Credit card			230						179						222						169						171						631						716
Total gross charge-offs			4,188						6,312						10,032						8,554						6,820						20,532						12,805
Recoveries
Commercial and industrial			869						205						337						367						265						1,411						2,540
Lease financing			0						0						0						(6)						6						0						6
Construction real estate			0						3						0						3						0						3						14
Commercial real estate			223						75						195						844						760						493						1,418
Residential real estate			56						54						44						145						91						154						236
Home equity			426						317						177						428						209						920						704
Installment			53						37						34						65						35						124						93
Credit card			67						44						39						85						38						150						145
Total recoveries			1,694						735						826						1,931						1,404						3,255						5,156
Total net charge-offs			2,494						5,577						9,206						6,623						5,416						17,277						7,649
Ending allowance for credit losses			$	148,903					$	159,590					$	169,923					$	175,679					$	168,544					$	148,903					$	168,544
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial			0.26		%				0.48		%				1.01		%				0.14		%				0.14		%				0.60		%				0.06		%
Lease financing			0.00		%				0.00		%				0.00		%				0.03		%				4.29		%				0.00		%				1.38		%
Construction real estate			0.00		%				0.00		%				0.00		%				0.00		%				0.00		%				0.00		%				0.00		%
Commercial real estate			0.07		%				0.18		%				0.10		%				0.50		%				0.28		%				0.12		%				0.14		%
Residential real estate			0.01		%				0.00		%				(0.02)		%				0.02		%				(0.03)		%				0.00		%				0.01		%
Home equity			(0.13)		%				(0.04)		%				0.24		%				(0.02)		%				0.13		%				0.02		%				0.08		%
Installment			(0.07)		%				0.19		%				0.01		%				(0.21)		%				0.12		%				0.04		%				0.06		%
Credit card			1.29		%				1.12		%				1.59		%				0.69		%				1.16		%				1.33		%				1.63		%
Total net charge-offs			0.10		%				0.23		%				0.38		%				0.26		%				0.21		%				0.24		%				0.10		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial			$	15,160					$	27,426					$	24,941					$	29,230					$	34,686					$	15,160					$	34,686
Lease financing			0						16						0						0						1,092						0						1,092
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			38,564						45,957						44,514						34,682						24,521						38,564						24,521
Residential real estate			9,416						9,480						11,359						11,601						12,104						9,416						12,104
Home equity			2,735						3,376						4,286						5,076						5,374						2,735						5,374
Installment			91						115						146						163						153						91						153
Nonaccrual loans			65,966						86,370						85,246						80,752						77,930						65,966						77,930
Accruing troubled debt restructurings (TDRs)			11,448						12,070						11,608						7,099						7,759						11,448						7,759
Total nonperforming loans			77,414						98,440						96,854						87,851						85,689						77,414						85,689
Other real estate owned (OREO)			340						340						854						1,287						1,643						340						1,643
Total nonperforming assets			77,754						98,780						97,708						89,138						87,332						77,754						87,332
Accruing loans past due 90 days or more			104						155						92						169						79						104						79
Total underperforming assets			$	77,858					$	98,935					$	97,800					$	89,307					$	87,411					$	77,858					$	87,411
Total classified assets			$	165,462					$	182,516					$	196,782					$	142,021					$	134,002					$	165,462					$	134,002
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans			225.73		%				184.77		%				199.33		%				217.55		%				216.28		%				225.73		%				216.28		%
Nonperforming loans			192.35		%				162.12		%				175.44		%				199.97		%				196.69		%				192.35		%				196.69		%
Total ending loans			1.59		%				1.68		%				1.71		%				1.77		%				1.65		%				1.59		%				1.65		%
Nonperforming loans to total loans			0.83		%				1.03		%				0.97		%				0.89		%				0.84		%				0.83		%				0.84		%
Nonperforming assets to
Ending loans, plus OREO			0.83		%				1.04		%				0.98		%				0.90		%				0.86		%				0.83		%				0.86		%
Total assets			0.49		%				0.62		%				0.60		%				0.56		%				0.55		%				0.49		%				0.55		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO			0.71		%				0.91		%				0.87		%				0.83		%				0.78		%				0.71		%				0.78		%
Total assets			0.42		%				0.54		%				0.53		%				0.51		%				0.50		%				0.42		%				0.50		%
Classified assets to total assets			1.04		%				1.14		%				1.22		%				0.89		%				0.84		%				1.04		%				0.84		%
(1) Nonaccrual loans include nonaccrual TDRs of $20.3 million, $21.5 million, $20.9 million, $14.7 million, and $29.3 million, as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

10

---

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																																	Nine months ended,
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						Sep. 30,						Sep. 30,
			2021						2021						2021						2020						2020						2021						2020
PER COMMON SHARE
Market Price
High			$	24.06					$	26.02					$	26.40					$	17.77					$	15.15					$	26.40					$	25.52
Low			$	21.48					$	23.35					$	17.62					$	12.07					$	11.40					$	17.62					$	11.40
Close			$	23.41					$	23.63					$	24.00					$	17.53					$	12.01					$	23.41					$	12.01
Average shares outstanding - basic			94,289,097						96,123,645						96,873,940						97,253,787						97,247,080						95,752,759						97,400,942
Average shares outstanding - diluted			95,143,930						97,009,712						97,727,527						98,020,534						98,008,733						96,617,600						98,117,463
Ending shares outstanding			93,742,797						96,199,509						97,517,693						98,021,929						97,999,763						93,742,797						97,999,763
Total shareholders' equity			$	2,236,170					$	2,269,507					$	2,258,942					$	2,282,070					$	2,247,815					$	2,236,170					$	2,247,815
REGULATORY CAPITAL			Preliminary																														Preliminary
Common equity tier 1 capital			$	1,316,059					$	1,333,209					$	1,334,882					$	1,325,922					$	1,293,716					$	1,316,059					$	1,293,716
Common equity tier 1 capital ratio			11.54		%				11.78		%				11.81		%				11.82		%				11.63		%				11.54		%				11.63		%
Tier 1 capital			$	1,359,297					$	1,376,333					$	1,377,892					$	1,368,818					$	1,336,497					$	1,359,297					$	1,336,497
Tier 1 ratio			11.92		%				12.16		%				12.19		%				12.20		%				12.02		%				11.92		%				12.02		%
Total capital			$	1,706,513					$	1,732,930					$	1,741,755					$	1,744,802					$	1,708,817					$	1,706,513					$	1,708,817
Total capital ratio			14.97		%				15.31		%				15.41		%				15.55		%				15.37		%				14.97		%				15.37		%
Total capital in excess of minimum requirement			$	509,536					$	544,478					$	554,834					$	566,795					$	541,263					$	509,536					$	541,263
Total risk-weighted assets			$	11,399,782					$	11,318,590					$	11,304,012					$	11,219,114					$	11,119,560					$	11,399,782					$	11,119,560
Leverage ratio			9.05		%				9.14		%				9.34		%				9.55		%				9.55		%				9.05		%				9.55		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets			14.01		%				14.15		%				13.97		%				14.29		%				14.11		%				14.01		%				14.11		%
Ending tangible shareholders' equity to ending tangible assets (1)			8.21		%				8.37		%				8.22		%				8.47		%				8.25		%				8.21		%				8.25		%
Average shareholders' equity to average assets			14.14		%				13.96		%				14.17		%				14.07		%				14.08		%				14.09		%				14.38		%
Average tangible shareholders' equity to average tangible assets (1)			8.35		%				8.23		%				8.38		%				8.26		%				8.18		%				8.32		%				8.29		%
REPURCHASE PROGRAM (2)
Shares repurchased			2,484,295						1,308,945						840,115						0						0						4,633,355						880,000
Average share repurchase price			$	23.04					$	25.11					$	21.40					N/A						N/A						$	23.33					$	18.96
Total cost of shares repurchased			$	57,231					$	32,864					$	17,982					N/A						N/A						$	108,077					$	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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