EX-99.1 2 a8k4q21earningsreleaseex991.htm EX-99.1

                                                Exhibit 99.1

                                        

First Financial Bancorp Announces Fourth Quarter and Full Year 2021

Financial Results and Quarterly Dividend

•Earnings per diluted share of $0.50; $0.58 on an adjusted(1) basis

•Return on average assets of 1.16%; 1.34% on an adjusted(1) basis

•Closed acquisition of Summit Funding Group

•$143.6 million of commercial loan sales during the quarter

•Loan growth of $148.8 million, excluding decline in PPP loans, loan sales, Summit acquisition(2)

•Classified assets declined 36.7%; Provision recapture of $7.7 million

•Announces $0.23 per share Quarterly Dividend and Board authorizes repurchase of up to 5 million shares

Cincinnati, Ohio - January 27, 2022. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and twelve months ended December 31, 2021.

For the three months ended December 31, 2021, the Company reported net income of $46.9 million, or $0.50 per diluted common share. These results compare to net income of $60.0 million, or $0.63 per diluted common share, for the third quarter of 2021 and $48.3 million, or $0.49 per diluted common share, for the fourth quarter of 2020. For the twelve months ended December 31, 2021, First Financial had earnings per diluted common share of $2.14 compared to $1.59 for the same period in 2020.

Return on average assets for the fourth quarter of 2021 was 1.16% while return on average tangible common equity was 15.11%(1). These compare to returns on average assets of 1.49% and 1.20%, and returns on average tangible common equity of 19.03%(1) and 15.50%(1), in the third quarter of 2021 and the fourth quarter of 2020, respectively.

Fourth quarter 2021 highlights include:

•Closed the acquisition of Summit Funding Group(2)

◦$116.2 million in leases acquired; $42.3 million financing leases, $73.9 million operating leases

◦$63.0 million of goodwill and $34.6 million of other intangible assets created

•Loan balances declined $72.6 million from the third quarter

◦Core loan balances increased $148.8 million(2), or 6.3% on an annualized basis, excluding PPP forgiveness of $120.2 million and $143.6 million of loan sales during the quarter, which were partially offset by acquisition of $42.3(2) million in Summit finance leases

◦Record production during the quarter of $1.3 billion in commitments

•Net interest margin of 3.23% on a fully tax-equivalent basis(1) in line with expectations

◦9 basis point decrease from linked quarter driven by PPP forgiveness which offset increase in other loan fees during the period

________________________________________________________________________________________

(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.

(2)The fair value measurements of assets acquired and liabilities assumed in the Summit acquisition are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available.

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•Noninterest income of $45.7 million, or $45.4 million as adjusted(1)

◦Record Bannockburn income of $12.8 million

◦Wealth management fees of $6.0 million

◦Other noninterest income increased $1.1 million, or 23.9%; driven by syndication fees

•Noninterest expenses of $109.6 million, or $94.1 million as adjusted(1)

◦Adjustments(1) include:

▪$6.1 million reclassification of tax credit investment write-downs

▪$4.1 million of acquisition related costs

▪$3.5 million litigation settlement

▪$1.9 million of other costs not expected to recur such as branch consolidation and severance costs

◦Increase in expenses driven by incentive compensation tied to the Company's strong financial performance

◦Efficiency ratio of 70.1%; 60.2% as adjusted(1)

•Total Allowance for Credit Losses of $145.4 million; Total quarterly provision recapture of $7.7 million

◦Loans and leases - ACL of $132.0 million, 1.42% of total loans

◦Unfunded Commitments - ACL of $13.4 million

◦Provision recapture driven by improvements in economic conditions and declining classified asset balances

◦Sold $133.9 million of hotel loans in an effort to address portfolio concentrations, resulting in $9.2     million of net charge-offs

•Strong capital ratios

◦Total capital of 14.10%

◦Tier 1 common equity of 10.84%

◦Tangible common equity of 7.58%(1)

◦Tangible book value per share of $12.26(1)

Additionally, First Financial's board of directors has authorized a new share repurchase program in replacement of the previously authorized program, pursuant to which management is authorized to purchase up to 5 million shares over the next two years. The board of directors also approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on March 15, 2022 to shareholders of record as of March 1, 2022.

Archie Brown, President and Chief Executive Officer, commented, “We are pleased to announce another quarter of strong financial results that was a fitting end to an exceptional year highlighted by robust earnings, strong fee income, provision recapture, improved credit trends and the acquisition of Summit Funding Group.”

Mr. Brown continued, “Fourth quarter results remained strong across the board, with adjusted(1) earnings per share of $0.58, return on assets of 1.34% and an efficiency ratio of 60.2%. These results were driven by provision recapture of $7.7 million, resulting from improving credit quality trends, specifically, a 36.7% decline in classified asset balances, and stable economic conditions. Earnings were also positively impacted by record Bannockburn income and elevated wealth management revenues. In addition, we were very encouraged by strong core loan growth and record origination activity during the period."

Mr. Brown added, “We were also very excited to announce and close our acquisition of Summit Funding Group during the quarter. Summit has developed long-standing relationships across the country and demonstrated the ability to produce high-quality and consistent lease origination volumes. We are confident in Summit's ability to leverage its nimble platform to provide our existing clients additional leasing products and we believe the culture will fit seamlessly into First Financial."

Mr. Brown commented regarding the Company's full year financial performance, “2021 was an exceptional year. PPP income offset the pressure from a historically low interest rate environment, while low credit costs drove strong earnings and reflected credit trends that improved dramatically over the course of the year. In addition, we had record fee income in 2021, which was particularly satisfying, given our strategic focus on diversifying our revenue streams in recent years. We successfully managed expenses, while continuing to invest in technology and rewarding our people for our strong results. Loan production in the back half of the year was very encouraging as was the continued growth in low cost deposits. Our capital ratios remain strong and we delivered industry leading returns through aggressively repurchasing shares and maintaining our common dividend.”

Mr. Brown concluded, “All of this was accomplished amidst a continuing pandemic. Once again, our associates demonstrated their resilience and delivered the type of service and results that our clients and shareholders have come to expect. In 2022, we will maintain our focus on being a positive influence that helps our clients and communities thrive, and capitalize on the financial momentum achieved in 2021."

Full detail of the Company’s fourth 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, January 28, 2022 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (844) 200-6205 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 080098. 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 245117. The recording will be available until February 11, 2022. 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 December 31, 2021, the Company had $16.3 billion in assets, $9.3 billion in loans, $12.9 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 $3.4 billion in assets under management as of December 31, 2021. The Company operated 139 full service banking centers as of December 31, 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

December 31, 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,																														Twelve months ended,
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						December 31,
			2021						2021						2021						2021						2020						2021						2020
RESULTS OF OPERATIONS
Net income			$	46,945					$	60,012					$	50,888					$	47,315					$	48,312					$	205,160					$	155,810
Net earnings per share - basic			$	0.51					$	0.64					$	0.53					$	0.49					$	0.50					$	2.16					$	1.60
Net earnings per share - diluted			$	0.50					$	0.63					$	0.52					$	0.48					$	0.49					$	2.14					$	1.59
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.23					$	0.92					$	0.92
KEY FINANCIAL RATIOS
Return on average assets			1.16		%				1.49		%				1.26		%				1.20		%				1.20		%				1.28		%				1.00		%
Return on average shareholders' equity			8.31		%				10.53		%				9.02		%				8.44		%				8.52		%				9.08		%				7.02		%
Return on average tangible shareholders' equity (1)			15.11		%				19.03		%				16.31		%				15.24		%				15.50		%				16.43		%				12.97		%
Net interest margin			3.19		%				3.28		%				3.27		%				3.35		%				3.45		%				3.27		%				3.46		%
Net interest margin (fully tax equivalent) (1)(2)			3.23		%				3.32		%				3.31		%				3.40		%				3.49		%				3.31		%				3.51		%
Ending shareholders' equity as a percent of ending assets			13.83		%				14.01		%				14.15		%				13.97		%				14.29		%				13.83		%				14.29		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)			7.58		%				8.21		%				8.37		%				8.22		%				8.47		%				7.58		%				8.47		%
Risk-weighted assets (1)			9.91		%				10.76		%				11.12		%				11.02		%				11.29		%				9.91		%				11.29		%
Average shareholders' equity as a percent of average assets			13.98		%				14.14		%				13.96		%				14.17		%				14.07		%				14.06		%				14.30		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)			8.20		%				8.35		%				8.23		%				8.38		%				8.26		%				8.29		%				8.28		%
Book value per share			$	23.99					$	23.85					$	23.59					$	23.16					$	23.28					$	23.99					$	23.28
Tangible book value per share (1)			$	12.26					$	13.09					$	13.08					$	12.78					$	12.93					$	12.26					$	12.93
Common equity tier 1 ratio (3)			10.84		%				11.54		%				11.78		%				11.81		%				11.82		%				10.84		%				11.82		%
Tier 1 ratio (3)			11.22		%				11.92		%				12.16		%				12.19		%				12.20		%				11.22		%				12.20		%
Total capital ratio (3)			14.10		%				14.97		%				15.31		%				15.41		%				15.55		%				14.10		%				15.55		%
Leverage ratio (3)			8.70		%				9.05		%				9.14		%				9.34		%				9.55		%				8.70		%				9.55		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)			$	9,283,227					$	9,502,750					$	9,831,965					$	9,951,855					$	10,127,881					$	9,640,235					$	9,902,656
Investment securities			4,343,513						4,189,253						4,130,207						3,782,993						3,403,839						4,113,240						3,212,051
Interest-bearing deposits with other banks			166,904						32,400						45,593						46,912						143,884						73,170						78,943
Total earning assets			$	13,793,644					$	13,724,403					$	14,007,765					$	13,781,760					$	13,675,604					$	13,826,645					$	13,193,650
Total assets			$	16,036,417					$	15,995,808					$	16,215,469					$	16,042,654					$	16,030,986					$	16,072,360					$	15,529,144
Noninterest-bearing deposits			$	4,191,457					$	3,981,404					$	4,003,626					$	3,840,046					$	3,720,417					$	4,005,034					$	3,310,483
Interest-bearing deposits			8,693,792						8,685,949						8,707,553						8,531,822						8,204,306						8,655,308						8,054,687
Total deposits			$	12,885,249					$	12,667,353					$	12,711,179					$	12,371,868					$	11,924,723					$	12,660,342					$	11,365,170
Borrowings			$	396,743					$	562,964					$	749,114					$	886,379					$	1,307,461					$	647,223					$	1,458,701
Shareholders' equity			$	2,241,820					$	2,261,293					$	2,263,687					$	2,272,749					$	2,256,062					$	2,259,807					$	2,220,645
CREDIT QUALITY RATIOS
Allowance to ending loans			1.42		%				1.59		%				1.68		%				1.71		%				1.77		%				1.42		%				1.77		%
Allowance to nonaccrual loans			272.76		%				225.73		%				184.77		%				199.33		%				217.55		%				272.76		%				217.55		%
Allowance to nonperforming loans			219.96		%				192.35		%				162.12		%				175.44		%				199.97		%				219.96		%				199.97		%
Nonperforming loans to total loans			0.65		%				0.83		%				1.03		%				0.97		%				0.89		%				0.65		%				0.89		%
Nonaccrual loans to total loans			0.52		%				0.70		%				0.91		%				0.86		%				0.82		%				0.52		%				0.82		%
Nonperforming assets to ending loans, plus OREO			0.65		%				0.83		%				1.04		%				0.98		%				0.90		%				0.65		%				0.90		%
Nonperforming assets to total assets			0.37		%				0.49		%				0.62		%				0.60		%				0.56		%				0.37		%				0.56		%
Classified assets to total assets			0.64		%				1.04		%				1.14		%				1.22		%				0.89		%				0.64		%				0.89		%
Net charge-offs to average loans (annualized)			0.32		%				0.10		%				0.23		%				0.38		%				0.26		%				0.26		%				0.14		%

(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) December 31, 2021 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.

2

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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
			Three months ended,																		Twelve months ended,
			December 31,																		December 31,
			2021						2020						% Change						2021						2020						% Change
Interest income
Loans and leases, including fees			$	92,682					$	106,733					(13.2)		%				$	385,535					$	431,657					(10.7)		%
Investment securities
Taxable			20,993						18,402						14.1		%				79,212						73,789						7.3		%
Tax-exempt			4,127						4,839						(14.7)		%				18,323						19,242						(4.8)		%
Total investment securities interest			25,120						23,241						8.1		%				97,535						93,031						4.8		%
Other earning assets			71						55						29.1		%				147						275						(46.5)		%
Total interest income			117,873						130,029						(9.3)		%				483,217						524,963						(8.0)		%
Interest expense
Deposits			3,089						5,920						(47.8)		%				14,435						41,922						(65.6)		%
Short-term borrowings			10						30						(66.7)		%				198						6,442						(96.9)		%
Long-term borrowings			3,968						5,606						(29.2)		%				16,466						20,088						(18.0)		%
Total interest expense			7,067						11,556						(38.8)		%				31,099						68,452						(54.6)		%
Net interest income			110,806						118,473						(6.5)		%				452,118						456,511						(1.0)		%
Provision for credit losses-loans and leases			(9,525)						13,758						N/M						(19,024)						70,796						N/M
Provision for credit losses-unfunded commitments			1,799						(2,250)						N/M						903						(237)						N/M
Net interest income after provision for credit losses			118,532						106,965						10.8		%				470,239						385,952						21.8		%
Noninterest income
Service charges on deposit accounts			8,645						7,654						12.9		%				31,876						29,446						8.3		%
Trust and wealth management fees			6,038						5,395						11.9		%				23,780						21,286						11.7		%
Bankcard income			3,602						3,060						17.7		%				14,300						11,726						22.0		%
Client derivative fees			2,303						2,021						14.0		%				7,927						10,313						(23.1)		%
Foreign exchange income			12,808						12,305						4.1		%				44,793						39,377						13.8		%
Net gains from sales of loans			6,492						13,089						(50.4)		%				33,021						51,176						(35.5)		%
Net gain (loss) on sale of investment securities			(14)						4,618						(100.3)		%				(759)						4,563						(116.6)		%
Net gain (loss) on equity securities			321						8,975						(96.4)		%				702						9,045						(92.2)		%
Other			5,465						4,398						24.3		%				15,866						12,191						30.1		%
Total noninterest income			45,660						61,515						(25.8)		%				171,506						189,123						(9.3)		%
Noninterest expenses
Salaries and employee benefits			62,170						62,263						(0.1)		%				245,924						236,779						3.9		%
Net occupancy			5,332						6,159						(13.4)		%				22,142						23,266						(4.8)		%
Furniture and equipment			3,161						3,596						(12.1)		%				13,819						14,968						(7.7)		%
Data processing			8,261						7,269						13.6		%				31,363						27,514						14.0		%
Marketing			2,152						1,999						7.7		%				7,983						6,414						24.5		%
Communication			677						840						(19.4)		%				2,930						3,492						(16.1)		%
Professional services			5,998						3,038						97.4		%				11,676						9,961						17.2		%
Debt extinguishment			0						7,257						(100.0)		%				0						7,257						(100.0)		%
State intangible tax			651						1,514						(57.0)		%				4,256						6,058						(29.7)		%
FDIC assessments			1,453						1,065						36.4		%				5,630						5,110						10.2		%
Intangible amortization			2,401						2,764						(13.1)		%				9,839						11,126						(11.6)		%
Other			17,349						17,034						1.8		%				45,250						38,719						16.9		%
Total noninterest expenses			109,605						114,798						(4.5)		%				400,812						390,664						2.6		%
Income before income taxes			54,587						53,682						1.7		%				240,933						184,411						30.7		%
Income tax expense			7,642						5,370						42.3		%				35,773						28,601						25.1		%
Net income			$	46,945					$	48,312					(2.8)		%				$	205,160					$	155,810					31.7		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.51					$	0.50											$	2.16					$	1.60
Net earnings per share - diluted			$	0.50					$	0.49											$	2.14					$	1.59
Dividends declared per share			$	0.23					$	0.23											$	0.92					$	0.92
Return on average assets			1.16		%				1.20		%										1.28		%				1.00		%
Return on average shareholders' equity			8.31		%				8.52		%										9.08		%				7.02		%
Interest income			$	117,873					$	130,029					(9.3)		%				$	483,217					$	524,963					(8.0)		%
Tax equivalent adjustment			1,386						1,613						(14.1)		%				6,091						6,529						(6.7)		%
Interest income - tax equivalent			119,259						131,642						(9.4)		%				489,308						531,492						(7.9)		%
Interest expense			7,067						11,556						(38.8)		%				31,099						68,452						(54.6)		%
Net interest income - tax equivalent			$	112,192					$	120,086					(6.6)		%				$	458,209					$	463,040					(1.0)		%
Net interest margin			3.19		%				3.45		%										3.27		%				3.46		%
Net interest margin (fully tax equivalent) (1)			3.23		%				3.49		%										3.31		%				3.51		%
Full-time equivalent employees			1,994						2,075
(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
			Fourth						Third						Second						First						Year to						% Change
			Quarter						Quarter						Quarter						Quarter						Date						Linked Qtr.
Interest income
Loans and leases, including fees			$	92,682					$	96,428					$	97,494					$	98,931					$	385,535					(3.9)		%
Investment securities
Taxable			20,993						20,088						19,524						18,607						79,212						4.5		%
Tax-exempt			4,127						4,282						4,871						5,043						18,323						(3.6)		%
Total investment securities interest			25,120						24,370						24,395						23,650						97,535						3.1		%
Other earning assets			71						23						25						28						147						208.7		%
Total interest income			117,873						120,821						121,914						122,609						483,217						(2.4)		%
Interest expense
Deposits			3,089						3,320						3,693						4,333						14,435						(7.0)		%
Short-term borrowings			10						68						53						67						198						(85.3)		%
Long-term borrowings			3,968						4,023						4,142						4,333						16,466						(1.4)		%
Total interest expense			7,067						7,411						7,888						8,733						31,099						(4.6)		%
Net interest income			110,806						113,410						114,026						113,876						452,118						(2.3)		%
Provision for credit losses-loans and leases			(9,525)						(8,193)						(4,756)						3,450						(19,024)						16.3		%
Provision for credit losses-unfunded commitments			1,799						(1,951)						517						538						903						N/M
Net interest income after provision for credit losses			118,532						123,554						118,265						109,888						470,239						(4.1)		%
Noninterest income
Service charges on deposit accounts			8,645						8,548						7,537						7,146						31,876						1.1		%
Trust and wealth management fees			6,038						5,896						6,216						5,630						23,780						2.4		%
Bankcard income			3,602						3,838						3,732						3,128						14,300						(6.1)		%
Client derivative fees			2,303						2,273						1,795						1,556						7,927						1.3		%
Foreign exchange income			12,808						9,191						12,037						10,757						44,793						39.4		%
Net gains from sales of loans			6,492						8,586						8,489						9,454						33,021						(24.4)		%
Net gain (loss) on sale of investment securities			(14)						(314)						(265)						(166)						(759)						(95.5)		%
Net gain (loss) on equity securities			321						108						161						112						702						197.2		%
Other			5,465						4,411						3,285						2,705						15,866						23.9		%
Total noninterest income			45,660						42,537						42,987						40,322						171,506						7.3		%
Noninterest expenses
Salaries and employee benefits			62,170						61,717						60,784						61,253						245,924						0.7		%
Net occupancy			5,332						5,571						5,535						5,704						22,142						(4.3)		%
Furniture and equipment			3,161						3,318						3,371						3,969						13,819						(4.7)		%
Data processing			8,261						7,951						7,864						7,287						31,363						3.9		%
Marketing			2,152						2,435						2,035						1,361						7,983						(11.6)		%
Communication			677						669						746						838						2,930						1.2		%
Professional services			5,998						2,199						2,029						1,450						11,676						172.8		%
State intangible tax			651						1,202						1,201						1,202						4,256						(45.8)		%
FDIC assessments			1,453						1,466						1,362						1,349						5,630						(0.9)		%
Intangible amortization			2,401						2,479						2,480						2,479						9,839						(3.1)		%
Other			17,349						10,051						12,236						5,614						45,250						72.6		%
Total noninterest expenses			109,605						99,058						99,643						92,506						400,812						10.6		%
Income before income taxes			54,587						67,033						61,609						57,704						240,933						(18.6)		%
Income tax expense			7,642						7,021						10,721						10,389						35,773						8.8		%
Net income			$	46,945					$	60,012					$	50,888					$	47,315					$	205,160					(21.8)		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.51					$	0.64					$	0.53					$	0.49					$	2.16
Net earnings per share - diluted			$	0.50					$	0.63					$	0.52					$	0.48					$	2.14
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.92
Return on average assets			1.16		%				1.49		%				1.26		%				1.20		%				1.28		%
Return on average shareholders' equity			8.31		%				10.53		%				9.02		%				8.44		%				9.08		%
Interest income			$	117,873					$	120,821					$	121,914					$	122,609					$	483,217					(2.4)		%
Tax equivalent adjustment			1,386						1,434						1,619						1,652						6,091						(3.3)		%
Interest income - tax equivalent			119,259						122,255						123,533						124,261						489,308						(2.5)		%
Interest expense			7,067						7,411						7,888						8,733						31,099						(4.6)		%
Net interest income - tax equivalent			$	112,192					$	114,844					$	115,645					$	115,528					$	458,209					(2.3)		%
Net interest margin			3.19		%				3.28		%				3.27		%				3.35		%				3.27		%
Net interest margin (fully tax equivalent) (1)			3.23		%				3.32		%				3.31		%				3.40		%				3.31		%
Full-time equivalent employees			1,994						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

---

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 gain (loss) on sale of investment securities									4,618						2						2						(59)						4,563
Net 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)
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						% Change						% Change
			2021						2021						2021						2021						2020						Linked Qtr.						Comp Qtr.
ASSETS
Cash and due from banks			$	220,031					$	209,748					$	206,918					$	210,191					$	231,054					4.9		%				(4.8)		%
Interest-bearing deposits with other banks			214,811						29,799						38,610						19,180						20,305						620.9		%				957.9		%
Investment securities available-for-sale			4,207,846						4,114,094						3,955,839						3,753,763						3,424,580						2.3		%				22.9		%
Investment securities held-to-maturity			98,420						103,886						112,456						121,945						131,687						(5.3)		%				(25.3)		%
Other investments			102,971						97,831						129,432						131,814						133,198						5.3		%				(22.7)		%
Loans held for sale			29,482						33,835						31,546						34,590						41,103						(12.9)		%				(28.3)		%
Loans and leases
Commercial and industrial			2,720,028						2,602,848						2,701,203						3,044,825						3,007,509						4.5		%				(9.6)		%
Lease financing			109,624						67,855						68,229						66,574						72,987						61.6		%				50.2		%
Construction real estate			455,894						477,004						630,329						642,709						636,096						(4.4)		%				(28.3)		%
Commercial real estate			4,226,614						4,438,374						4,332,561						4,396,582						4,307,858						(4.8)		%				(1.9)		%
Residential real estate			896,069						922,492						932,112						946,522						1,003,086						(2.9)		%				(10.7)		%
Home equity			708,399						709,050						711,756						709,667						743,099						(0.1)		%				(4.7)		%
Installment			119,454						96,077						89,143						82,421						81,850						24.3		%				45.9		%
Credit card			52,217						47,231						46,177						44,669						48,485						10.6		%				7.7		%
Total loans			9,288,299						9,360,931						9,511,510						9,933,969						9,900,970						(0.8)		%				(6.2)		%
Less:
Allowance for credit losses			(131,992)						(148,903)						(159,590)						(169,923)						(175,679)						(11.4)		%				(24.9)		%
Net loans			9,156,307						9,212,028						9,351,920						9,764,046						9,725,291						(0.6)		%				(5.9)		%
Premises and equipment			193,040						192,580						192,238						204,537						207,211						0.2		%				(6.8)		%
Operating leases			73,857						0						0						0						0						N/M						N/M
Goodwill			1,000,749						937,771						937,771						937,771						937,771						6.7		%				6.7		%
Other intangibles			88,898						56,811						59,391						61,984						64,552						56.5		%				37.7		%
Accrued interest and other assets			942,729						968,210						1,021,798						935,250						1,056,382						(2.6)		%				(10.8)		%
Total Assets			$	16,329,141					$	15,956,593					$	16,037,919					$	16,175,071					$	15,973,134					2.3		%				2.2		%
LIABILITIES
Deposits
Interest-bearing demand			$	3,198,745					$	2,916,860					$	2,963,151					$	2,914,761					$	2,914,787					9.7		%				9.7		%
Savings			4,157,374						4,223,905						4,093,229						4,006,181						3,680,774						(1.6)		%				12.9		%
Time			1,330,263						1,517,419						1,548,109						1,731,757						1,872,733						(12.3)		%				(29.0)		%
Total interest-bearing deposits			8,686,382						8,658,184						8,604,489						8,652,699						8,468,294						0.3		%				2.6		%
Noninterest-bearing			4,185,572						4,019,197						3,901,691						3,995,370						3,763,709						4.1		%				11.2		%
Total deposits			12,871,954						12,677,381						12,506,180						12,648,069						12,232,003						1.5		%				5.2		%
Federal funds purchased and securities sold
under agreements to repurchase			51,203						81,850						255,791						181,387						166,594						(37.4)		%				(69.3)		%
FHLB short-term borrowings			225,000						107,000						217,000						0						0						110.3		%				N/M
Other			20,000						0						0						0						0						N/M						N/M
Total short-term borrowings			296,203						188,850						472,791						181,387						166,594						56.8		%				77.8		%
Long-term debt			409,832						313,230						313,039						583,722						776,202						30.8		%				(47.2)		%
Total borrowed funds			706,035						502,080						785,830						765,109						942,796						40.6		%				(25.1)		%
Accrued interest and other liabilities			492,210						540,962						476,402						502,951						516,265						(9.0)		%				(4.7)		%
Total Liabilities			14,070,199						13,720,423						13,768,412						13,916,129						13,691,064						2.5		%				2.8		%
SHAREHOLDERS' EQUITY
Common stock			1,640,358						1,637,065						1,635,470						1,633,137						1,638,947						0.2		%				0.1		%
Retained earnings			837,473						812,082						773,857						745,220						720,429						3.1		%				16.2		%
Accumulated other comprehensive income (loss)			(433)						14,230						30,735						18,101						48,664						(103.0)		%				(100.9)		%
Treasury stock, at cost			(218,456)						(227,207)						(170,555)						(137,516)						(125,970)						(3.9)		%				73.4		%
Total Shareholders' Equity			2,258,942						2,236,170						2,269,507						2,258,942						2,282,070						1.0		%				(1.0)		%
Total Liabilities and Shareholders' Equity			$	16,329,141					$	15,956,593					$	16,037,919					$	16,175,071					$	15,973,134					2.3		%				2.2		%

6

---

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Quarterly Averages																														Year-to-Date Averages
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Dec. 31,
			2021						2021						2021						2021						2020						2021						2020
ASSETS
Cash and due from banks			$	253,091					$	245,212					$	237,964					$	232,275					$	228,427					$	242,201					$	245,436
Interest-bearing deposits with other banks			166,904						32,400						45,593						46,912						143,884						73,170						78,943
Investment securities			4,343,513						4,189,253						4,130,207						3,782,993						3,403,839						4,113,240						3,212,051
Loans held for sale			24,491						28,365						28,348						29,689						42,402						27,711						34,390
Loans and leases
Commercial and industrial			2,552,686						2,634,306						2,953,185						3,029,716						3,182,749						2,790,733						2,999,223
Lease financing			67,537						67,159						66,124						70,508						74,107						67,822						79,882
Construction real estate			460,588						567,091						630,351						647,655						608,401						575,883						535,740
Commercial real estate			4,391,328						4,413,003						4,372,679						4,339,349						4,313,408						4,379,325						4,317,396
Residential real estate			917,399						937,969						940,600						980,718						1,022,701						943,981						1,043,040
Home equity			709,954						710,794						707,409						726,134						752,425						713,521						764,436
Installment			106,188						93,937						84,768						81,377						83,509						91,642						81,451
Credit card			53,056						50,126						48,501						46,709						48,179						49,617						47,098
Total loans			9,258,736						9,474,385						9,803,617						9,922,166						10,085,479						9,612,524						9,868,266
Less:
Allowance for credit losses			(144,756)						(157,727)						(169,979)						(177,863)						(172,201)						(162,477)						(153,596)
Net loans			9,113,980						9,316,658						9,633,638						9,744,303						9,913,278						9,450,047						9,714,670
Premises and equipment			192,941						193,775						200,558						206,628						208,800						198,425						212,413
Operating leases			801						0						0						0						0						202						0
Goodwill			938,453						937,771						937,771						937,771						937,771						937,943						937,771
Other intangibles			56,120						58,314						60,929						63,529						66,195						59,699						70,600
Accrued interest and other assets			946,123						994,060						940,461						998,554						1,086,390						969,722						1,022,870
Total Assets			$	16,036,417					$	15,995,808					$	16,215,469					$	16,042,654					$	16,030,986					$	16,072,360					$	15,529,144
LIABILITIES
Deposits
Interest-bearing demand			$	3,069,416					$	2,960,388					$	2,973,930					$	2,948,682					$	2,812,748					$	2,988,359					$	2,626,252
Savings			4,195,504						4,150,610						4,096,077						3,815,314						3,547,179						4,065,654						3,260,882
Time			1,428,872						1,574,951						1,637,546						1,767,826						1,844,379						1,601,295						2,167,553
Total interest-bearing deposits			8,693,792						8,685,949						8,707,553						8,531,822						8,204,306						8,655,308						8,054,687
Noninterest-bearing			4,191,457						3,981,404						4,003,626						3,840,046						3,720,417						4,005,034						3,310,483
Total deposits			12,885,249						12,667,353						12,711,179						12,371,868						11,924,723						12,660,342						11,365,170
Federal funds purchased and securities sold
under agreements to repurchase			79,382						186,401						194,478						184,483						136,795						160,967						149,036
FHLB short-term borrowings			2,445						63,463						40,846						67,222						7,937						43,371						441,867
Other			654						0						0						0						0						165						0
Total short-term borrowings			82,481						249,864						235,324						251,705						144,732						204,503						590,903
Long-term debt			314,262						313,100						513,790						634,674						1,162,729						442,720						867,798
Total borrowed funds			396,743						562,964						749,114						886,379						1,307,461						647,223						1,458,701
Accrued interest and other liabilities			512,605						504,198						491,489						511,658						542,740						504,988						484,628
Total Liabilities			13,794,597						13,734,515						13,951,782						13,769,905						13,774,924						13,812,553						13,308,499
SHAREHOLDERS' EQUITY
Common stock			1,637,828						1,635,833						1,633,950						1,636,884						1,638,032						1,636,126						1,636,850
Retained earnings			822,500						783,760						754,456						726,351						703,257						772,063						675,503
Accumulated other comprehensive loss			8,542						36,917						25,832						42,253						40,960						28,317						33,228
Treasury stock, at cost			(227,050)						(195,217)						(150,551)						(132,739)						(126,187)						(176,699)						(124,936)
Total Shareholders' Equity			2,241,820						2,261,293						2,263,687						2,272,749						2,256,062						2,259,807						2,220,645
Total Liabilities and Shareholders' Equity			$	16,036,417					$	15,995,808					$	16,215,469					$	16,042,654					$	16,030,986					$	16,072,360					$	15,529,144

7

---

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
						Quarterly Averages																																																																					Year-to-Date Averages
						December 31, 2021												September 30, 2021												December 31, 2020																					December 31, 2021												December 31, 2020
						Balance						Yield						Balance						Yield						Balance						Yield																																							Balance						Yield						Balance						Yield
Earning assets
Investments:
Investment securities						$	4,343,513					2.29		%				$	4,189,253					2.31		%				$	3,403,839					2.71		%																																					$	4,113,240					2.37		%				$	3,212,051					2.90		%
Interest-bearing deposits with other banks						166,904						0.17		%				32,400						0.28		%				143,884						0.15		%																																					73,170						0.20		%				78,943						0.35		%
Gross loans (1)						9,283,227						3.96		%				9,502,750						4.03		%				10,127,881						4.18		%																																					9,640,235						4.00		%				9,902,656						4.36		%
Total earning assets						13,793,644						3.39		%				13,724,403						3.49		%				13,675,604						3.77		%																																					13,826,645						3.49		%				13,193,650						3.98		%
Nonearning assets
Allowance for credit losses						(144,756)												(157,727)												(172,201)																																													(162,477)												(153,596)
Cash and due from banks						253,091												245,212												228,427																																													242,201												245,436
Accrued interest and other assets						2,134,438												2,183,920												2,299,156																																													2,165,991												2,243,654
Total assets						$	16,036,417											$	15,995,808											$	16,030,986																																												$	16,072,360											$	15,529,144
Interest-bearing liabilities
Deposits:
Interest-bearing demand						$	3,069,416					0.06		%				$	2,960,388					0.06		%				$	2,812,748					0.08		%																																					$	2,988,359					0.06		%				$	2,626,252					0.17		%
Savings						4,195,504						0.09		%				4,150,610						0.09		%				3,547,179						0.15		%																																					4,065,654						0.10		%				3,260,882						0.22		%
Time						1,428,872						0.48		%				1,574,951						0.49		%				1,844,379						0.86		%																																					1,601,295						0.52		%				2,167,553						1.39		%
Total interest-bearing deposits						8,693,792						0.14		%				8,685,949						0.15		%				8,204,306						0.29		%																																					8,655,308						0.17		%				8,054,687						0.52		%
Borrowed funds
Short-term borrowings						82,481						0.05		%				249,864						0.11		%				144,732						0.08		%																																					204,503						0.10		%				590,903						1.09		%
Long-term debt						314,262						5.01		%				313,100						5.10		%				1,162,729						1.91		%																																					442,720						3.72		%				867,798						2.31		%
Total borrowed funds						396,743						3.98		%				562,964						2.88		%				1,307,461						1.71		%																																					647,223						2.57		%				1,458,701						1.82		%
Total interest-bearing liabilities						9,090,535						0.31		%				9,248,913						0.32		%				9,511,767						0.48		%																																					9,302,531						0.33		%				9,513,388						0.72		%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits						4,191,457												3,981,404												3,720,417																																													4,005,034												3,310,483
Other liabilities						512,605												504,198												542,740																																													504,988												484,628
Shareholders' equity						2,241,820												2,261,293												2,256,062																																													2,259,807												2,220,645
Total liabilities & shareholders' equity						$	16,036,417											$	15,995,808											$	16,030,986																																												$	16,072,360											$	15,529,144
Net interest income						$	110,806											$	113,410											$	118,473																																												$	452,118											$	456,511
Net interest spread												3.08		%										3.17		%										3.29		%																																											3.16		%										3.26		%
Net interest margin												3.19		%										3.28		%										3.45		%																																											3.27		%										3.46		%
Tax equivalent adjustment												0.04		%										0.04		%										0.04		%																																											0.04		%										0.05		%
Net interest margin (fully tax equivalent)												3.23		%										3.32		%										3.49		%																																											3.31		%										3.51		%
(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						$	(142)								$	892					$	750					$	(3,555)					$	5,434					$	1,879					$	(16,865)					$	21,369					$	4,504
Interest-bearing deposits with other banks						(9)									57						48						6						10						16						(116)						(12)						(128)
Gross loans (2)						(1,554)									(2,192)						(3,746)						(5,618)						(8,433)						(14,051)						(35,627)						(10,495)						(46,122)
Total earning assets						(1,705)									(1,243)						(2,948)						(9,167)						(2,989)						(12,156)						(52,608)						10,862						(41,746)
Interest-bearing liabilities
Total interest-bearing deposits						$	(234)								$	3					$	(231)					$	(3,005)					$	174					$	(2,831)					$	(28,489)					$	1,002					$	(27,487)
Borrowed funds
Short-term borrowings						(38)									(20)						(58)						(12)						(8)						(20)						(5,870)						(374)						(6,244)
Long-term debt						(70)									15						(55)						9,075						(10,713)						(1,638)						12,188						(15,810)						(3,622)
Total borrowed funds						(108)									(5)						(113)						9,063						(10,721)						(1,658)						6,318						(16,184)						(9,866)
Total interest-bearing liabilities						(342)									(2)						(344)						6,058						(10,547)						(4,489)						(22,171)						(15,182)						(37,353)
Net interest income (1)						$	(1,363)								$	(1,241)					$	(2,604)					$	(15,225)					$	7,558					$	(7,667)					$	(30,437)					$	26,044					$	(4,393)
(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)
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Full Year						Full Year
			2021						2021						2021						2021						2020						2021						2020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period			$	148,903					$	159,590					$	169,923					$	175,679					$	168,544					$	175,679					$	57,650
Day one adoption impact of ASC 326			0						0						0						0						0						0						61,505
Purchase accounting ACL for PCD			17						0						0						0						0						17						0
Provision for credit losses			(9,525)						(8,193)						(4,756)						3,450						13,758						(19,024)						70,796
Gross charge-offs
Commercial and industrial			1,364						2,617						3,729						7,910						1,505						15,620						5,345
Lease financing			0						0						0						0						0						0						852
Construction real estate			1,496						0						0						2						0						1,498						0
Commercial real estate			9,150						1,030						2,041						1,250						6,270						13,471						12,100
Residential real estate			6						74						46						1						203						127						488
Home equity			22						200						240						611						386						1,073						1,541
Installment			184						37						77						36						21						334						148
Credit card			149						230						179						222						169						780						885
Total gross charge-offs			12,371						4,188						6,312						10,032						8,554						32,903						21,359
Recoveries
Commercial and industrial			201						869						205						337						367						1,612						2,907
Lease financing			0						0						0						0						(6)						0						0
Construction real estate			0						0						3						0						3						3						17
Commercial real estate			4,292						223						75						195						844						4,785						2,262
Residential real estate			74						56						54						44						145						228						381
Home equity			303						426						317						177						428						1,223						1,132
Installment			27						53						37						34						65						151						158
Credit card			71						67						44						39						85						221						230
Total recoveries			4,968						1,694						735						826						1,931						8,223						7,087
Total net charge-offs			7,403						2,494						5,577						9,206						6,623						24,680						14,272
Ending allowance for credit losses			$	131,992					$	148,903					$	159,590					$	169,923					$	175,679					$	131,992					$	175,679
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial			0.18		%				0.26		%				0.48		%				1.01		%				0.14		%				0.50		%				0.08		%
Lease financing			0.00		%				0.00		%				0.00		%				0.00		%				0.03		%				0.00		%				1.07		%
Construction real estate			1.29		%				0.00		%				0.00		%				0.00		%				0.00		%				0.26		%				0.00		%
Commercial real estate			0.44		%				0.07		%				0.18		%				0.10		%				0.50		%				0.20		%				0.23		%
Residential real estate			(0.03)		%				0.01		%				0.00		%				(0.02)		%				0.02		%				(0.01)		%				0.01		%
Home equity			(0.16)		%				(0.13)		%				(0.04)		%				0.24		%				(0.02)		%				(0.02)		%				0.05		%
Installment			0.59		%				(0.07)		%				0.19		%				0.01		%				(0.21)		%				0.20		%				(0.01)		%
Credit card			0.58		%				1.29		%				1.12		%				1.59		%				0.69		%				1.13		%				1.39		%
Total net charge-offs			0.32		%				0.10		%				0.23		%				0.38		%				0.26		%				0.26		%				0.14		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial			$	17,362					$	15,160					$	27,426					$	24,941					$	29,230					$	17,362					$	29,230
Lease financing			203						0						16						0						0						203						0
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			19,512						38,564						45,957						44,514						34,682						19,512						34,682
Residential real estate			8,305						9,416						9,480						11,359						11,601						8,305						11,601
Home equity			2,922						2,735						3,376						4,286						5,076						2,922						5,076
Installment			88						91						115						146						163						88						163
Nonaccrual loans			48,392						65,966						86,370						85,246						80,752						48,392						80,752
Accruing troubled debt restructurings (TDRs)			11,616						11,448						12,070						11,608						7,099						11,616						7,099
Total nonperforming loans			60,008						77,414						98,440						96,854						87,851						60,008						87,851
Other real estate owned (OREO)			98						340						340						854						1,287						98						1,287
Total nonperforming assets			60,106						77,754						98,780						97,708						89,138						60,106						89,138
Accruing loans past due 90 days or more			137						104						155						92						169						137						169
Total underperforming assets			$	60,243					$	77,858					$	98,935					$	97,800					$	89,307					$	60,243					$	89,307
Total classified assets			$	104,815					$	165,462					$	182,516					$	196,782					$	142,021					$	104,815					$	142,021
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans			272.76		%				225.73		%				184.77		%				199.33		%				217.55		%				272.76		%				217.55		%
Nonperforming loans			219.96		%				192.35		%				162.12		%				175.44		%				199.97		%				219.96		%				199.97		%
Total ending loans			1.42		%				1.59		%				1.68		%				1.71		%				1.77		%				1.42		%				1.77		%
Nonperforming loans to total loans			0.65		%				0.83		%				1.03		%				0.97		%				0.89		%				0.65		%				0.89		%
Nonaccrual loans to total loans			0.52		%				0.70		%				0.91		%				0.86		%				0.82		%				0.52		%				0.82		%
Nonperforming assets to
Ending loans, plus OREO			0.65		%				0.83		%				1.04		%				0.98		%				0.90		%				0.65		%				0.90		%
Total assets			0.37		%				0.49		%				0.62		%				0.60		%				0.56		%				0.37		%				0.56		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO			0.52		%				0.71		%				0.91		%				0.87		%				0.83		%				0.52		%				0.83		%
Total assets			0.30		%				0.42		%				0.54		%				0.53		%				0.51		%				0.30		%				0.51		%
Classified assets to total assets			0.64		%				1.04		%				1.14		%				1.22		%				0.89		%				0.64		%				0.89		%
(1) Nonaccrual loans include nonaccrual TDRs of $16.0 million, $20.3 million, $21.5 million, $20.9 million, and $14.7 million, as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

10

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FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																																	Twelve months ended,
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Dec. 31,						Dec. 31,
			2021						2021						2021						2021						2020						2021						2020
PER COMMON SHARE
Market Price
High			$	25.79					$	24.06					$	26.02					$	26.40					$	17.77					$	26.40					$	25.52
Low			$	22.89					$	21.48					$	23.35					$	17.62					$	12.07					$	17.62					$	11.40
Close			$	24.38					$	23.41					$	23.63					$	24.00					$	17.53					$	24.38					$	17.53
Average shares outstanding - basic			92,903,900						94,289,097						96,123,645						96,873,940						97,253,787						95,034,690						97,363,952
Average shares outstanding - diluted			93,761,909						95,143,930						97,009,712						97,727,527						98,020,534						95,897,385						98,093,098
Ending shares outstanding			94,149,240						93,742,797						96,199,509						97,517,693						98,021,929						94,149,240						98,021,929
Total shareholders' equity			$	2,258,942					$	2,236,170					$	2,269,507					$	2,258,942					$	2,282,070					$	2,258,942					$	2,282,070
REGULATORY CAPITAL			Preliminary																														Preliminary
Common equity tier 1 capital			$	1,262,789					$	1,316,059					$	1,333,209					$	1,334,882					$	1,325,922					$	1,262,789					$	1,325,922
Common equity tier 1 capital ratio			10.84		%				11.54		%				11.78		%				11.81		%				11.82		%				10.84		%				11.82		%
Tier 1 capital			$	1,306,571					$	1,359,297					$	1,376,333					$	1,377,892					$	1,368,818					$	1,306,571					$	1,368,818
Tier 1 ratio			11.22		%				11.92		%				12.16		%				12.19		%				12.20		%				11.22		%				12.20		%
Total capital			$	1,642,549					$	1,706,513					$	1,732,930					$	1,741,755					$	1,744,802					$	1,642,549					$	1,744,802
Total capital ratio			14.10		%				14.97		%				15.31		%				15.41		%				15.55		%				14.10		%				15.55		%
Total capital in excess of minimum requirement			$	419,743					$	509,536					$	544,478					$	554,834					$	566,795					$	419,743					$	566,795
Total risk-weighted assets			$	11,645,769					$	11,399,782					$	11,318,590					$	11,304,012					$	11,219,114					$	11,645,769					$	11,219,114
Leverage ratio			8.70		%				9.05		%				9.14		%				9.34		%				9.55		%				8.70		%				9.55		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets			13.83		%				14.01		%				14.15		%				13.97		%				14.29		%				13.83		%				14.29		%
Ending tangible shareholders' equity to ending tangible assets (1)			7.58		%				8.21		%				8.37		%				8.22		%				8.47		%				7.58		%				8.47		%
Average shareholders' equity to average assets			13.98		%				14.14		%				13.96		%				14.17		%				14.07		%				14.06		%				14.30		%
Average tangible shareholders' equity to average tangible assets (1)			8.20		%				8.35		%				8.23		%				8.38		%				8.26		%				8.29		%				8.28		%
REPURCHASE PROGRAM (2)
Shares repurchased			0						2,484,295						1,308,945						840,115						0						4,633,355						880,000
Average share repurchase price			N/A						$	23.04					$	25.11					$	21.40					N/A						$	23.33					$	18.96
Total cost of shares repurchased			N/A						$	57,231					$	32,864					$	17,982					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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