EX-99.1 2 a8k2q22earningsreleaseex991.htm EX-99.1

                                                Exhibit 99.1

First Financial Bancorp Announces Second Quarter 2022 Financial Results

•Earnings per diluted share of $0.55; $0.56 on an adjusted(1) basis

•Return on average assets of 1.28%; 1.31% on an adjusted(1) basis

•Net interest margin on FTE basis(1) of 3.47%; 30 bp increase from linked quarter

•Loan growth of $191.4 million, excluding PPP; 8.3% on an annualized basis

•Noninterest income of $49.8 million increased 20.6% from the linked quarter

Cincinnati, Ohio - July 21, 2022. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and six months ended June 30, 2022.

For the three months ended June 30, 2022, the Company reported net income of $51.5 million, or $0.55 per diluted common share. These results compare to net income of $41.3 million, or $0.44 per diluted common share, for the first quarter of 2022. For the six months ended June 30, 2022, First Financial had earnings per diluted share of $0.98 compared to $1.01 for the same period in 2021.

Return on average assets for the second quarter of 2022 was 1.28% while return on average tangible common equity was 20.68%(1). These compare to returns on average assets of 1.03% and return on average tangible common equity of 14.93%(1) in the first quarter of 2022.

Second quarter 2022 highlights include:

•Strong loan growth when compared to linked quarter(2)

◦Loan balances increased $178.8 million compared to the first quarter; $191.4 million excluding PPP

◦Growth of 7.8% on an annualized basis; 8.3% on an annualized basis excluding PPP

◦Broad based portfolio growth, with large increases in C&I and residential real estate portfolios

•Net interest margin of 3.43%, or 3.47% on a fully tax-equivalent basis(1), exceeded expectations

◦30 bp increase to 3.47% from 3.17% in the first quarter due to higher asset yields resulting from higher interest rates

◦34 bp increase in loan yields offset modest 2 basis point increase in cost of interest bearing deposits

•Noninterest income of $49.8 million, or $50.8 million as adjusted(1)

◦Record foreign exchange income of $13.5 million; 32.7% increase from the linked quarter

◦Leasing business income of $7.2 million; 19.3% increase from the linked quarter

◦Wealth management fees remained strong at $6.3 million

◦Mortgage banking revenue increased $1.4 million; 35.4% increase from the linked quarter

◦Other noninterest income increased $2.3 million; 65.9% increase from the linked quarter driven by investments in limited partnerships

◦Adjusted(1) for $1.1 million loss on investment securities

________________________________________________________________________________________

(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 consolidated balance sheets at June 30, 2022, March 31, 2022 and December 31, 2021 include assets acquired and liabilities assumed in the Summit Financial transaction. The fair value measurements of assets acquired and liabilities assumed 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 expenses of $103.2 million, or $102.4 million as adjusted(1)

◦Adjustments(1) include $0.1 million of acquisition related costs and $0.7 million of other costs not expected to recur such as severance and branch consolidation costs

◦Slight increase in expenses driven by higher salaries and benefits tied to elevated fee income

◦Efficiency ratio of 61.8%; 60.9% as adjusted(1)

•Total Allowance for Credit Losses of $134.5 million; Total quarterly provision recapture of $0.8 million

◦Loans and leases - ACL of $117.9 million, 1.25% of total loans

◦Unfunded Commitments - ACL of $16.7 million

◦Provision recapture driven by stable credit quality

◦Net charge-offs declined to 8 bps of average loans and leases

•Regulatory capital ratios remain in excess of internal targets

◦Total capital ratio of 13.94%

◦Tier 1 common equity increased 4 basis points to 10.91%

◦Tangible common equity of 6.40%(1); decrease from linked quarter driven by decline in AOCI

◦Tangible book value per share of $10.27(1)

Archie Brown, President and CEO, commented on the quarter, “I am extremely pleased with our performance in the second quarter. Earnings improved from the first quarter as our asset sensitive balance sheet was positively impacted by recent rate increases. In addition, credit quality was stable with lower net charge-offs and nonaccrual loan balances. This led to a small provision recapture for the quarter.”

Mr. Brown continued, “We were encouraged by our strong fee income performance for the quarter. Total fee income surpassed our expectations due to record foreign exchange income, strong income from limited partnership investments and growing leasing business income. While second quarter mortgage banking income increased 35% from the linked quarter, we continue to experience headwinds due to the rapid rise in interest rates. In addition, recent overdraft program changes led to a modest reduction in deposit account service charges during the second quarter and we expect further decline due to these program changes in the coming periods.”

Mr. Brown commented on loan growth, “We were very pleased with loan growth in the second quarter. Loans (excluding PPP) increased by $191 million, or 8.3%, on an annualized basis. Loan growth was broad based, with increases in the C&I, retail mortgage and consumer portfolios. This more than offset a decline in the ICRE portfolio, which was driven by elevated prepayments. In addition, we were also pleased with Summit's growth in the quarter, including operating leases, which increased $21 million, or 33.5%, during the period. Loan origination activity remains strong as we head into the third quarter.”

Mr. Brown concluded, “I want to thank our associates for their excellent performance so far this year. As we head into the back half of the year, we are optimistic that our balance sheet is positioned to further benefit from additional rate increases and loan activity remains strong. We remain diligent in our credit monitoring and are prepared to manage a downturn in the economy should it occur later in the interest rate cycle.”

Full detail of the Company’s second quarter 2022 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, July 22, 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 099625. 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 049791. The recording will be available until August 5, 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 changes in housing prices, fluctuations in 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 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, 2021, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov. 

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing.  Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of June 30, 2022, the Company had $16.2 billion in assets, $9.4 billion in loans, $12.3 billion in deposits and $2.1 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 $3.0 billion in assets under management as of June 30, 2022. The Company operated 135 full service banking centers as of June 30, 2022, primarily in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

Contact Information

Investors/Analysts                    Media

Jamie Anderson                        Tim Condron

Chief Financial Officer                    Marketing Communications Manager

(513) 887-5400                        (513) 979-5796

InvestorRelations@bankatfirst.com            media@bankatfirst.com    

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Selected Financial Information

June 30, 2022

(unaudited)

Contents			Page
Consolidated Financial Highlights			2
Consolidated Quarterly 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			44,782
Credit Quality			10
Capital Adequacy			11

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FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
			Three Months Ended,																														Six months ended,
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,
			2022						2022						2021						2021						2021						2022						2021
RESULTS OF OPERATIONS
Net income			$	51,520					$	41,301					$	46,945					$	60,012					$	50,888					$	92,821					$	98,203
Net earnings per share - basic			$	0.55					$	0.44					$	0.51					$	0.64					$	0.53					$	0.99					$	1.02
Net earnings per share - diluted			$	0.55					$	0.44					$	0.50					$	0.63					$	0.52					$	0.98					$	1.01
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.23					$	0.46					$	0.46
KEY FINANCIAL RATIOS
Return on average assets			1.28		%				1.03		%				1.16		%				1.49		%				1.26		%				1.16		%				1.23		%
Return on average shareholders' equity			9.84		%				7.53		%				8.31		%				10.53		%				9.02		%				8.66		%				8.73		%
Return on average tangible shareholders' equity (1)			20.68		%				14.93		%				15.11		%				19.03		%				16.31		%				17.65		%				15.78		%
Net interest margin			3.43		%				3.12		%				3.19		%				3.28		%				3.27		%				3.27		%				3.31		%
Net interest margin (fully tax equivalent) (1)(2)			3.47		%				3.17		%				3.23		%				3.32		%				3.31		%				3.32		%				3.35		%
Ending shareholders' equity as a percent of ending assets			12.74		%				13.35		%				13.83		%				14.01		%				14.15		%				12.74		%				14.15		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)			6.40		%				6.95		%				7.58		%				8.21		%				8.37		%				6.40		%				8.37		%
Risk-weighted assets (1)			8.09		%				8.85		%				9.91		%				10.76		%				11.12		%				8.09		%				11.12		%
Average shareholders' equity as a percent of average assets			12.97		%				13.75		%				13.98		%				14.14		%				13.96		%				13.36		%				14.06		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)			6.62		%				7.44		%				8.20		%				8.35		%				8.23		%				7.03		%				8.30		%
Book value per share			$	21.90					$	22.63					$	23.99					$	23.85					$	23.59					$	21.90					$	23.59
Tangible book value per share (1)			$	10.27					$	10.97					$	12.26					$	13.09					$	13.08					$	10.27					$	13.08
Common equity tier 1 ratio (3)			10.91		%				10.87		%				10.84		%				11.54		%				11.78		%				10.91		%				11.78		%
Tier 1 ratio (3)			11.28		%				11.24		%				11.22		%				11.92		%				12.16		%				11.28		%				12.16		%
Total capital ratio (3)			13.94		%				13.97		%				14.10		%				14.97		%				15.31		%				13.94		%				15.31		%
Leverage ratio (3)			8.76		%				8.64		%				8.70		%				9.05		%				9.14		%				8.76		%				9.14		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)			$	9,367,820					$	9,266,774					$	9,283,227					$	9,502,750					$	9,831,965					$	9,317,576					$	9,891,579
Investment securities			4,118,287						4,308,059						4,343,513						4,189,253						4,130,207						4,212,649						3,957,559
Interest-bearing deposits with other banks			236,797						234,687						166,904						32,400						45,593						235,748						46,249
Total earning assets			$	13,722,904					$	13,809,520					$	13,793,644					$	13,724,403					$	14,007,765					$	13,765,973					$	13,895,387
Total assets			$	16,185,978					$	16,184,919					$	16,036,417					$	15,995,808					$	16,215,469					$	16,185,451					$	16,129,539
Noninterest-bearing deposits			$	4,224,842					$	4,160,175					$	4,191,457					$	3,981,404					$	4,003,626					$	4,192,687					$	3,922,288
Interest-bearing deposits			8,312,876						8,623,800						8,693,792						8,685,949						8,707,553						8,467,479						8,620,173
Total deposits			$	12,537,718					$	12,783,975					$	12,885,249					$	12,667,353					$	12,711,179					$	12,660,166					$	12,542,461
Borrowings			$	970,243					$	701,287					$	396,743					$	562,964					$	749,114					$	836,508					$	817,367
Shareholders' equity			$	2,099,670					$	2,225,495					$	2,241,820					$	2,261,293					$	2,263,687					$	2,162,235					$	2,268,193
CREDIT QUALITY RATIOS
Allowance to ending loans			1.25		%				1.34		%				1.42		%				1.59		%				1.68		%				1.25		%				1.68		%
Allowance to nonaccrual loans			302.87		%				273.09		%				272.76		%				225.73		%				184.77		%				302.87		%				184.77		%
Allowance to nonperforming loans			235.08		%				231.98		%				219.96		%				192.35		%				162.12		%				235.08		%				162.12		%
Nonperforming loans to total loans			0.53		%				0.58		%				0.65		%				0.83		%				1.03		%				0.53		%				1.03		%
Nonaccrual loans to total loans			0.41		%				0.49		%				0.52		%				0.70		%				0.91		%				0.41		%				0.91		%
Nonperforming assets to ending loans, plus OREO			0.53		%				0.58		%				0.65		%				0.83		%				1.04		%				0.53		%				1.04		%
Nonperforming assets to total assets			0.31		%				0.33		%				0.37		%				0.49		%				0.62		%				0.31		%				0.62		%
Classified assets to total assets			0.74		%				0.67		%				0.64		%				1.04		%				1.14		%				0.74		%				1.14		%
Net charge-offs to average loans (annualized)			0.08		%				0.10		%				0.32		%				0.10		%				0.23		%				0.09		%				0.30		%

(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.

(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

(3) June 30, 2022 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,																		Six months ended,
			June 30,																		June 30,
			2022						2021						% Change						2022						2021						% Change
Interest income
Loans and leases, including fees			$	97,091					$	97,494					(0.4)		%				$	184,273					$	196,425					(6.2)		%
Investment securities
Taxable			23,639						19,524						21.1		%				45,735						38,131						19.9		%
Tax-exempt			4,916						4,871						0.9		%				9,347						9,914						(5.7)		%
Total investment securities interest			28,555						24,395						17.1		%				55,082						48,045						14.6		%
Other earning assets			497						25						N/M						618						53						N/M
Total interest income			126,143						121,914						3.5		%				239,973						244,523						(1.9)		%
Interest expense
Deposits			2,963						3,693						(19.8)		%				5,586						8,026						(30.4)		%
Short-term borrowings			1,373						53						N/M						1,690						120						N/M
Long-term borrowings			4,612						4,142						11.3		%				9,156						8,475						8.0		%
Total interest expense			8,948						7,888						13.4		%				16,432						16,621						(1.1)		%
Net interest income			117,195						114,026						2.8		%				223,541						227,902						(1.9)		%
Provision for credit losses-loans and leases			(4,267)						(4,756)						(10.3)		%				(9,856)						(1,306)						N/M
Provision for credit losses-unfunded commitments			3,481						517						N/M						3,255						1,055						208.5		%
Net interest income after provision for credit losses			117,981						118,265						(0.2)		%				230,142						228,153						0.9		%
Noninterest income
Service charges on deposit accounts			7,648						7,537						1.5		%				15,377						14,683						4.7		%
Trust and wealth management fees			6,311						6,216						1.5		%				12,371						11,846						4.4		%
Bankcard income			3,823						3,732						2.4		%				7,160						6,860						4.4		%
Client derivative fees			1,353						1,795						(24.6)		%				2,152						3,351						(35.8)		%
Foreign exchange income			13,470						12,037						11.9		%				23,621						22,794						3.6		%
Leasing business income			7,247						0						100.0		%				13,323						0						100.0		%
Net gains from sales of loans			5,241						8,489						(38.3)		%				9,113						17,943						(49.2)		%
Net gain (loss) on sale of investment securities			0						(265)						(100.0)		%				3						(431)						(100.7)		%
Net gain (loss) on equity securities			(1,054)						161						N/M						(1,253)						273						N/M
Other			5,747						3,285						74.9		%				9,212						5,990						53.8		%
Total noninterest income			49,786						42,987						15.8		%				91,079						83,309						9.3		%
Noninterest expenses
Salaries and employee benefits			64,992						60,784						6.9		%				128,939						122,037						5.7		%
Net occupancy			5,359						5,535						(3.2)		%				11,105						11,239						(1.2)		%
Furniture and equipment			3,201						3,371						(5.0)		%				6,768						7,340						(7.8)		%
Data processing			8,334						7,864						6.0		%				16,598						15,151						9.6		%
Marketing			2,323						2,035						14.2		%				4,023						3,396						18.5		%
Communication			670						746						(10.2)		%				1,336						1,584						(15.7)		%
Professional services			2,214						2,029						9.1		%				4,373						3,479						25.7		%
State intangible tax			1,090						1,201						(9.2)		%				2,221						2,403						(7.6)		%
FDIC assessments			1,677						1,362						23.1		%				3,136						2,711						15.7		%
Intangible amortization			2,915						2,480						17.5		%				5,829						4,959						17.5		%
Leasing business expense			4,687						0						100.0		%				8,556						0						100.0		%
Other			5,765						12,236						(52.9)		%				13,148						17,850						(26.3)		%
Total noninterest expenses			103,227						99,643						3.6		%				206,032						192,149						7.2		%
Income before income taxes			64,540						61,609						4.8		%				115,189						119,313						(3.5)		%
Income tax expense			13,020						10,721						21.4		%				22,368						21,110						6.0		%
Net income			$	51,520					$	50,888					1.2		%				$	92,821					$	98,203					(5.5)		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.55					$	0.53											$	0.99					$	1.02
Net earnings per share - diluted			$	0.55					$	0.52											$	0.98					$	1.01
Dividends declared per share			$	0.23					$	0.23											$	0.46					$	0.46
Return on average assets			1.28		%				1.26		%										1.16		%				1.23		%
Return on average shareholders' equity			9.84		%				9.02		%										8.66		%				8.73		%
Interest income			$	126,143					$	121,914					3.5		%				$	239,973					$	244,523					(1.9)		%
Tax equivalent adjustment			1,625						1,619						0.4		%				3,092						3,271						(5.5)		%
Interest income - tax equivalent			127,768						123,533						3.4		%				243,065						247,794						(1.9)		%
Interest expense			8,948						7,888						13.4		%				16,432						16,621						(1.1)		%
Net interest income - tax equivalent			$	118,820					$	115,645					2.7		%				$	226,633					$	231,173					(2.0)		%
Net interest margin			3.43		%				3.27		%										3.27		%				3.31		%
Net interest margin (fully tax equivalent) (1)			3.47		%				3.31		%										3.32		%				3.35		%
Full-time equivalent employees			2,096						2,053
(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)
												2022
															Second						First						Year to						% Change
															Quarter						Quarter						Date						Linked Qtr.
Interest income
Loans and leases, including fees															$	97,091					$	87,182					$	184,273					11.4		%
Investment securities
Taxable															23,639						22,096						45,735						7.0		%
Tax-exempt															4,916						4,431						9,347						10.9		%
Total investment securities interest															28,555						26,527						55,082						7.6		%
Other earning assets															497						121						618						310.7		%
Total interest income															126,143						113,830						239,973						10.8		%
Interest expense
Deposits															2,963						2,623						5,586						13.0		%
Short-term borrowings															1,373						317						1,690						333.1		%
Long-term borrowings															4,612						4,544						9,156						1.5		%
Total interest expense															8,948						7,484						16,432						19.6		%
Net interest income															117,195						106,346						223,541						10.2		%
Provision for credit losses-loans and leases															(4,267)						(5,589)						(9,856)						(23.7)		%
Provision for credit losses-unfunded commitments															3,481						(226)						3,255						N/M
Net interest income after provision for credit losses															117,981						112,161						230,142						5.2		%
Noninterest income
Service charges on deposit accounts															7,648						7,729						15,377						(1.0)		%
Trust and wealth management fees															6,311						6,060						12,371						4.1		%
Bankcard income															3,823						3,337						7,160						14.6		%
Client derivative fees															1,353						799						2,152						69.3		%
Foreign exchange income															13,470						10,151						23,621						32.7		%
Leasing business income															7,247						6,076						13,323						19.3		%
Net gains from sales of loans															5,241						3,872						9,113						35.4		%
Net gain (loss) on sale of investment securities															0						3						3						(100.0)		%
Net gain (loss) on equity securities															(1,054)						(199)						(1,253)						429.6		%
Other															5,747						3,465						9,212						65.9		%
Total noninterest income															49,786						41,293						91,079						20.6		%
Noninterest expenses
Salaries and employee benefits															64,992						63,947						128,939						1.6		%
Net occupancy															5,359						5,746						11,105						(6.7)		%
Furniture and equipment															3,201						3,567						6,768						(10.3)		%
Data processing															8,334						8,264						16,598						0.8		%
Marketing															2,323						1,700						4,023						36.6		%
Communication															670						666						1,336						0.6		%
Professional services															2,214						2,159						4,373						2.5		%
State intangible tax															1,090						1,131						2,221						(3.6)		%
FDIC assessments															1,677						1,459						3,136						14.9		%
Intangible amortization															2,915						2,914						5,829						0.0		%
Leasing business expense															4,687						3,869						8,556						21.1		%
Other															5,765						7,383						13,148						(21.9)		%
Total noninterest expenses															103,227						102,805						206,032						0.4		%
Income before income taxes															64,540						50,649						115,189						27.4		%
Income tax expense															13,020						9,348						22,368						39.3		%
Net income															$	51,520					$	41,301					$	92,821					24.7		%
ADDITIONAL DATA
Net earnings per share - basic															$	0.55					$	0.44					$	0.99
Net earnings per share - diluted															$	0.55					$	0.44					$	0.98
Dividends declared per share															$	0.23					$	0.23					$	0.46
Return on average assets															1.28		%				1.03		%				1.16		%
Return on average shareholders' equity															9.84		%				7.53		%				8.66		%
Interest income															$	126,143					$	113,830					$	239,973					10.8		%
Tax equivalent adjustment															1,625						1,467						3,092						10.8		%
Interest income - tax equivalent															127,768						115,297						243,065						10.8		%
Interest expense															8,948						7,484						16,432						19.6		%
Net interest income - tax equivalent															$	118,820					$	107,813					$	226,633					10.2		%
Net interest margin															3.43		%				3.12		%				3.27		%
Net interest margin (fully tax equivalent) (1)															3.47		%				3.17		%				3.32		%
Full-time equivalent employees															2,096						2,050 (2)
(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.
(2) Includes 65 FTE from Summit acquisition.

4

---

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
									2021
									Fourth						Third						Second						First						Full
									Quarter						Quarter						Quarter						Quarter						Year
Interest income
Loans and leases, including fees									$	92,682					$	96,428					$	97,494					$	98,931					$	385,535
Investment securities
Taxable									20,993						20,088						19,524						18,607						79,212
Tax-exempt									4,127						4,282						4,871						5,043						18,323
Total investment securities interest									25,120						24,370						24,395						23,650						97,535
Other earning assets									71						23						25						28						147
Total interest income									117,873						120,821						121,914						122,609						483,217
Interest expense
Deposits									3,089						3,320						3,693						4,333						14,435
Short-term borrowings									10						68						53						67						198
Long-term borrowings									3,968						4,023						4,142						4,333						16,466
Total interest expense									7,067						7,411						7,888						8,733						31,099
Net interest income									110,806						113,410						114,026						113,876						452,118
Provision for credit losses-loans and leases									(9,525)						(8,193)						(4,756)						3,450						(19,024)
Provision for credit losses-unfunded commitments									1,799						(1,951)						517						538						903
Net interest income after provision for credit losses									118,532						123,554						118,265						109,888						470,239
Noninterest income
Service charges on deposit accounts									8,645						8,548						7,537						7,146						31,876
Trust and wealth management fees									6,038						5,896						6,216						5,630						23,780
Bankcard income									3,602						3,838						3,732						3,128						14,300
Client derivative fees									2,303						2,273						1,795						1,556						7,927
Foreign exchange income									12,808						9,191						12,037						10,757						44,793
Leasing business income									0						0						0						0						0
Net gains from sales of loans									6,492						8,586						8,489						9,454						33,021
Net gain (loss) on sale of investment securities									(14)						(314)						(265)						(166)						(759)
Net gain (loss) on equity securities									321						108						161						112						702
Other									5,465						4,411						3,285						2,705						15,866
Total noninterest income									45,660						42,537						42,987						40,322						171,506
Noninterest expenses
Salaries and employee benefits									62,170						61,717						60,784						61,253						245,924
Net occupancy									5,332						5,571						5,535						5,704						22,142
Furniture and equipment									3,161						3,318						3,371						3,969						13,819
Data processing									8,261						7,951						7,864						7,287						31,363
Marketing									2,152						2,435						2,035						1,361						7,983
Communication									677						669						746						838						2,930
Professional services									5,998						2,199						2,029						1,450						11,676
State intangible tax									651						1,202						1,201						1,202						4,256
FDIC assessments									1,453						1,466						1,362						1,349						5,630
Intangible amortization									2,401						2,479						2,480						2,479						9,839
Leasing business expense									0						0						0						0						0
Other									17,349						10,051						12,236						5,614						45,250
Total noninterest expenses									109,605						99,058						99,643						92,506						400,812
Income before income taxes									54,587						67,033						61,609						57,704						240,933
Income tax expense (benefit)									7,642						7,021						10,721						10,389						35,773
Net income									$	46,945					$	60,012					$	50,888					$	47,315					$	205,160
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
Tax equivalent adjustment									1,386						1,434						1,619						1,652						6,091
Interest income - tax equivalent									119,259						122,255						123,533						124,261						489,308
Interest expense									7,067						7,411						7,888						8,733						31,099
Net interest income - tax equivalent									$	112,192					$	114,844					$	115,645					$	115,528					$	458,209
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.

5

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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						% Change						% Change
			2022						2022						2021						2021						2021						Linked Qtr.						Comp Qtr.
ASSETS
Cash and due from banks			$	302,549					$	230,428					$	220,031					$	209,748					$	206,918					31.3		%				46.2		%
Interest-bearing deposits with other banks			184,974						227,147						214,811						29,799						38,610						(18.6)		%				379.1		%
Investment securities available-for-sale			3,843,580						3,957,882						4,207,846						4,114,094						3,955,839						(2.9)		%				(2.8)		%
Investment securities held-to-maturity			88,057						92,597						98,420						103,886						112,456						(4.9)		%				(21.7)		%
Other investments			132,151						114,563						102,971						97,831						129,432						15.4		%				2.1		%
Loans held for sale			22,044						12,670						29,482						33,835						31,546						74.0		%				(30.1)		%
Loans and leases
Commercial and industrial			2,927,175						2,800,209						2,720,028						2,602,848						2,701,203						4.5		%				8.4		%
Lease financing			146,639						125,867						109,624						67,855						68,229						16.5		%				114.9		%
Construction real estate			449,734						479,744						455,894						477,004						630,329						(6.3)		%				(28.7)		%
Commercial real estate			4,007,037						4,031,484						4,226,614						4,438,374						4,332,561						(0.6)		%				(7.5)		%
Residential real estate			965,387						913,838						896,069						922,492						932,112						5.6		%				3.6		%
Home equity			725,700						707,973						708,399						709,050						711,756						2.5		%				2.0		%
Installment			146,680						132,197						119,454						96,077						89,143						11.0		%				64.5		%
Credit card			52,065						50,305						52,217						47,231						46,177						3.5		%				12.8		%
Total loans			9,420,417						9,241,617						9,288,299						9,360,931						9,511,510						1.9		%				(1.0)		%
Less:
Allowance for credit losses			(117,885)						(124,130)						(131,992)						(148,903)						(159,590)						(5.0)		%				(26.1)		%
Net loans			9,302,532						9,117,487						9,156,307						9,212,028						9,351,920						2.0		%				(0.5)		%
Premises and equipment			191,099						190,975						193,040						192,580						192,238						0.1		%				(0.6)		%
Operating leases			82,659						61,927						60,811						0						0						33.5		%				100.0		%
Goodwill			999,959						999,959						1,000,749						937,771						937,771						0.0		%				6.6		%
Other intangibles			82,889						85,891						88,898						56,811						59,391						(3.5)		%				39.6		%
Accrued interest and other assets			1,011,221						917,624						955,775						968,210						1,021,798						10.2		%				(1.0)		%
Total Assets			$	16,243,714					$	16,009,150					$	16,329,141					$	15,956,593					$	16,037,919					1.5		%				1.3		%
LIABILITIES
Deposits
Interest-bearing demand			$	3,096,365					$	3,246,646					$	3,198,745					$	2,916,860					$	2,963,151					(4.6)		%				4.5		%
Savings			4,029,717						4,188,867						4,157,374						4,223,905						4,093,229						(3.8)		%				(1.6)		%
Time			1,026,918						1,121,966						1,330,263						1,517,419						1,548,109						(8.5)		%				(33.7)		%
Total interest-bearing deposits			8,153,000						8,557,479						8,686,382						8,658,184						8,604,489						(4.7)		%				(5.2)		%
Noninterest-bearing			4,124,111						4,261,429						4,185,572						4,019,197						3,901,691						(3.2)		%				5.7		%
Total deposits			12,277,111						12,818,908						12,871,954						12,677,381						12,506,180						(4.2)		%				(1.8)		%
Federal funds purchased and securities sold
under agreements to repurchase			0						0						51,203						81,850						255,791						0.0		%				(100.0)		%
FHLB short-term borrowings			896,000						185,000						225,000						107,000						217,000						384.3		%				312.9		%
Other			0						0						20,000						0						0						0.0		%				0.0		%
Total short-term borrowings			896,000						185,000						296,203						188,850						472,791						384.3		%				89.5		%
Long-term debt			358,578						379,840						409,832						313,230						313,039						(5.6)		%				14.5		%
Total borrowed funds			1,254,578						564,840						706,035						502,080						785,830						122.1		%				59.7		%
Accrued interest and other liabilities			643,355						487,957						492,210						540,962						476,402						31.8		%				35.0		%
Total Liabilities			14,175,044						13,871,705						14,070,199						13,720,423						13,768,412						2.2		%				3.0		%
SHAREHOLDERS' EQUITY
Common stock			1,637,237						1,634,903						1,640,358						1,637,065						1,635,470						0.1		%				0.1		%
Retained earnings			887,006						857,178						837,473						812,082						773,857						3.5		%				14.6		%
Accumulated other comprehensive income (loss)			(243,328)						(142,477)						(433)						14,230						30,735						70.8		%				N/M
Treasury stock, at cost			(212,245)						(212,159)						(218,456)						(227,207)						(170,555)						0.0		%				24.4		%
Total Shareholders' Equity			2,068,670						2,137,445						2,258,942						2,236,170						2,269,507						(3.2)		%				(8.8)		%
Total Liabilities and Shareholders' Equity			$	16,243,714					$	16,009,150					$	16,329,141					$	15,956,593					$	16,037,919					1.5		%				1.3		%

6

---

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Quarterly Averages																														Year-to-Date Averages
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,
			2022						2022						2021						2021						2021						2022						2021
ASSETS
Cash and due from banks			$	305,803					$	248,517					$	253,091					$	245,212					$	237,964					$	277,318					$	235,135
Interest-bearing deposits with other banks			236,797						234,687						166,904						32,400						45,593						235,748						46,249
Investment securities			4,118,287						4,308,059						4,343,513						4,189,253						4,130,207						4,212,649						3,957,559
Loans held for sale			15,446						15,589						24,491						28,365						28,348						15,517						29,015
Loans and leases
Commercial and industrial			2,884,373						2,736,613						2,552,686						2,634,306						2,953,185						2,810,901						2,991,239
Lease financing			134,334						115,703						67,537						67,159						66,124						125,070						68,304
Construction real estate			460,609						474,278						460,588						567,091						630,351						467,406						638,955
Commercial real estate			4,025,493						4,139,072						4,391,328						4,413,003						4,372,679						4,081,969						4,356,106
Residential real estate			936,165						903,567						917,399						937,969						940,600						919,956						960,548
Home equity			716,219						703,714						709,954						710,794						707,409						710,001						716,720
Installment			140,145						125,579						106,188						93,937						84,768						132,902						83,082
Credit card			55,036						52,659						53,056						50,126						48,501						53,854						47,610
Total loans			9,352,374						9,251,185						9,258,736						9,474,385						9,803,617						9,302,059						9,862,564
Less:
Allowance for credit losses			(123,950)						(129,601)						(144,756)						(157,727)						(169,979)						(126,760)						(173,899)
Net loans			9,228,424						9,121,584						9,113,980						9,316,658						9,633,638						9,175,299						9,688,665
Premises and equipment			191,895						192,832						192,941						193,775						200,558						192,361						203,576
Operating leases			73,862						61,297						659						0						0						67,614						0
Goodwill			999,958						1,000,238						938,453						937,771						937,771						1,000,097						937,771
Other intangibles			84,577						87,602						56,120						58,314						60,929						86,081						62,222
Accrued interest and other assets			930,929						914,514						946,265						994,060						940,461						922,767						969,347
Total Assets			$	16,185,978					$	16,184,919					$	16,036,417					$	15,995,808					$	16,215,469					$	16,185,451					$	16,129,539
LIABILITIES
Deposits
Interest-bearing demand			$	3,180,846					$	3,246,919					$	3,069,416					$	2,960,388					$	2,973,930					$	3,213,700					$	2,961,376
Savings			4,076,380						4,145,615						4,195,504						4,150,610						4,096,077						4,110,806						3,956,471
Time			1,055,650						1,231,266						1,428,872						1,574,951						1,637,546						1,142,973						1,702,326
Total interest-bearing deposits			8,312,876						8,623,800						8,693,792						8,685,949						8,707,553						8,467,479						8,620,173
Noninterest-bearing			4,224,842						4,160,175						4,191,457						3,981,404						4,003,626						4,192,687						3,922,288
Total deposits			12,537,718						12,783,975						12,885,249						12,667,353						12,711,179						12,660,166						12,542,461
Federal funds purchased and securities sold
under agreements to repurchase			24,229						45,358						79,382						186,401						194,478						34,735						189,508
FHLB short-term borrowings			586,846						257,800						2,445						63,463						40,846						423,232						53,961
Other			0						12,889						654						0						0						6,409						0
Total short-term borrowings			611,075						316,047						82,481						249,864						235,324						464,376						243,469
Long-term debt			359,168						385,240						314,262						313,100						513,790						372,132						573,898
Total borrowed funds			970,243						701,287						396,743						562,964						749,114						836,508						817,367
Accrued interest and other liabilities			578,347						474,162						512,605						504,198						491,489						526,542						501,518
Total Liabilities			14,086,308						13,959,424						13,794,597						13,734,515						13,951,782						14,023,216						13,861,346
SHAREHOLDERS' EQUITY
Common stock			1,635,990						1,638,321						1,637,828						1,635,833						1,633,950						1,637,149						1,635,409
Retained earnings			866,910						841,652						822,500						783,760						754,456						854,351						740,481
Accumulated other comprehensive loss			(190,949)						(38,448)						8,542						36,917						25,832						(115,120)						33,997
Treasury stock, at cost			(212,281)						(216,030)						(227,050)						(195,217)						(150,551)						(214,145)						(141,694)
Total Shareholders' Equity			2,099,670						2,225,495						2,241,820						2,261,293						2,263,687						2,162,235						2,268,193
Total Liabilities and Shareholders' Equity			$	16,185,978					$	16,184,919					$	16,036,417					$	15,995,808					$	16,215,469					$	16,185,451					$	16,129,539

7

---

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
						Quarterly Averages																																																																																							Year-to-Date Averages
						June 30, 2022																		March 31, 2022																		June 30, 2021																											June 30, 2022												June 30, 2021
						Balance						Interest						Yield						Balance						Interest						Yield						Balance						Interest						Yield																																							Balance						Yield						Balance						Yield
Earning assets
Investments:
Investment securities						$	4,118,287					$	28,555					2.78		%				$	4,308,059					$	26,527					2.50		%				$	4,130,207					$	24,395					2.37		%																																					$	4,212,649					2.64		%				$	3,957,559					2.45		%
Interest-bearing deposits with other banks						236,797						497						0.84		%				234,687						121						0.21		%				45,593						25						0.22		%																																					235,748						0.53		%				46,249						0.23		%
Gross loans (1)						9,367,820						97,091						4.16		%				9,266,774						87,182						3.82		%				9,831,965						97,494						3.98		%																																					9,317,576						3.99		%				9,891,579						4.00		%
Total earning assets						13,722,904						126,143						3.69		%				13,809,520						113,830						3.34		%				14,007,765						121,914						3.49		%																																					13,765,973						3.52		%				13,895,387						3.55		%
Nonearning assets
Allowance for credit losses						(123,950)																		(129,601)																		(169,979)																																																			(126,760)												(173,899)
Cash and due from banks						305,803																		248,517																		237,964																																																			277,318												235,135
Accrued interest and other assets						2,281,221																		2,256,483																		2,139,719																																																			2,268,920												2,172,916
Total assets						$	16,185,978																	$	16,184,919																	$	16,215,469																																																		$	16,185,451											$	16,129,539
Interest-bearing liabilities
Deposits:
Interest-bearing demand						$	3,180,846					$	842					0.11		%				$	3,246,919					$	492					0.06		%				$	2,973,930					$	489					0.07		%																																					$	3,213,700					0.08		%				$	2,961,376					0.07		%
Savings						4,076,380						1,003						0.10		%				4,145,615						850						0.08		%				4,096,077						1,106						0.11		%																																					4,110,806						0.09		%				3,956,471						0.12		%
Time						1,055,650						1,118						0.42		%				1,231,266						1,281						0.42		%				1,637,546						2,098						0.51		%																																					1,142,973						0.42		%				1,702,326						0.56		%
Total interest-bearing deposits						8,312,876						2,963						0.14		%				8,623,800						2,623						0.12		%				8,707,553						3,693						0.17		%																																					8,467,479						0.13		%				8,620,173						0.19		%
Borrowed funds
Short-term borrowings						611,075						1,373						0.90		%				316,047						317						0.41		%				235,324						53						0.09		%																																					464,376						0.73		%				243,469						0.10		%
Long-term debt						359,168						4,612						5.15		%				385,240						4,544						4.78		%				513,790						4,142						3.23		%																																					372,132						4.96		%				573,898						2.98		%
Total borrowed funds						970,243						5,985						2.47		%				701,287						4,861						2.81		%				749,114						4,195						2.25		%																																					836,508						2.61		%				817,367						2.12		%
Total interest-bearing liabilities						9,283,119						8,948						0.39		%				9,325,087						7,484						0.33		%				9,456,667						7,888						0.33		%																																					9,303,987						0.36		%				9,437,540						0.36		%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits						4,224,842																		4,160,175																		4,003,626																																																			4,192,687												3,922,288
Other liabilities						578,347																		474,162																		491,489																																																			526,542												501,518
Shareholders' equity						2,099,670																		2,225,495																		2,263,687																																																			2,162,235												2,268,193
Total liabilities & shareholders' equity						$	16,185,978																	$	16,184,919																	$	16,215,469																																																		$	16,185,451											$	16,129,539
Net interest income						$	117,195																	$	106,346																	$	114,026																																																		$	223,541											$	227,902
Net interest spread																		3.30		%																3.01		%																3.16		%																																											3.16		%										3.19		%
Net interest margin																		3.43		%																3.12		%																3.27		%																																											3.27		%										3.31		%
Tax equivalent adjustment																		0.04		%																0.05		%																0.04		%																																											0.05		%										0.04		%
Net interest margin (fully tax equivalent)																		3.47		%																3.17		%																3.31		%																																											3.32		%										3.35		%
(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						$	3,016								$	(988)					$	2,028					$	4,243					$	(83)					$	4,160					$	3,702					$	3,335					$	7,037
Interest-bearing deposits with other banks						366									10						376						71						401						472						68						497						565
Gross loans (2)						7,806									2,103						9,909						4,408						(4,811)						(403)						(800)						(11,352)						(12,152)
Total earning assets						11,188									1,125						12,313						8,722						(4,493)						4,229						2,970						(7,520)						(4,550)
Interest-bearing liabilities
Total interest-bearing deposits						$	417								$	(77)					$	340					$	(589)					$	(141)					$	(730)					$	(2,339)					$	(101)					$	(2,440)
Borrowed funds
Short-term borrowings						385									671						1,056						476						844						1,320						766						804						1,570
Long-term debt						348									(280)						68						2,455						(1,985)						470						5,645						(4,964)						681
Total borrowed funds						733									391						1,124						2,931						(1,141)						1,790						6,411						(4,160)						2,251
Total interest-bearing liabilities						1,150									314						1,464						2,342						(1,282)						1,060						4,072						(4,261)						(189)
Net interest income (1)						$	10,038								$	811					$	10,849					$	6,380					$	(3,211)					$	3,169					$	(1,102)					$	(3,259)					$	(4,361)
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.

9

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FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
																																	Six months ended
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,						June 30,
			2022						2022						2021						2021						2021						2022						2021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period			$	124,130					$	131,992					$	148,903					$	159,590					$	169,923					$	131,992					$	175,679
Purchase accounting ACL for PCD			0						0						17						0						0						0						0
Provision for credit losses			(4,267)						(5,589)						(9,525)						(8,193)						(4,756)						(9,856)						(1,306)
Gross charge-offs
Commercial and industrial			773						2,845						1,364						2,617						3,729						3,618						11,639
Lease financing			8						131						0						0						0						139						0
Construction real estate			0						0						1,496						0						0						0						2
Commercial real estate			3,419						0						9,150						1,030						2,041						3,419						3,291
Residential real estate			4						22						6						74						46						26						47
Home equity			22						21						22						200						240						43						851
Installment			361						177						184						37						77						538						113
Credit card			212						246						149						230						179						458						401
Total gross charge-offs			4,799						3,442						12,371						4,188						6,312						8,241						16,344
Recoveries
Commercial and industrial			177						379						201						869						205						556						542
Lease financing			3						33						0						0						0						36						0
Construction real estate			0						0						0						0						3						0						3
Commercial real estate			2,194						222						4,292						223						75						2,416						270
Residential real estate			34						90						74						56						54						124						98
Home equity			360						265						303						426						317						625						494
Installment			47						21						27						53						37						68						71
Credit card			6						159						71						67						44						165						83
Total recoveries			2,821						1,169						4,968						1,694						735						3,990						1,561
Total net charge-offs			1,978						2,273						7,403						2,494						5,577						4,251						14,783
Ending allowance for credit losses			$	117,885					$	124,130					$	131,992					$	148,903					$	159,590					$	117,885					$	159,590
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial			0.08		%				0.37		%				0.18		%				0.26		%				0.48		%				0.22		%				0.75		%
Lease financing			0.01		%				0.34		%				0.00		%				0.00		%				0.00		%				0.17		%				0.00		%
Construction real estate			0.00		%				0.00		%				1.29		%				0.00		%				0.00		%				0.00		%				0.00		%
Commercial real estate			0.12		%				(0.02)		%				0.44		%				0.07		%				0.18		%				0.05		%				0.14		%
Residential real estate			(0.01)		%				(0.03)		%				(0.03)		%				0.01		%				0.00		%				(0.02)		%				(0.01)		%
Home equity			(0.19)		%				(0.14)		%				(0.16)		%				(0.13)		%				(0.04)		%				(0.17)		%				0.10		%
Installment			0.90		%				0.50		%				0.59		%				(0.07)		%				0.19		%				0.71		%				0.10		%
Credit card			1.50		%				0.67		%				0.58		%				1.29		%				1.12		%				1.10		%				1.35		%
Total net charge-offs			0.08		%				0.10		%				0.32		%				0.10		%				0.23		%				0.09		%				0.30		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial			$	11,675					$	14,390					$	17,362					$	15,160					$	27,426					$	11,675					$	27,426
Lease financing			217						249						203						0						16						217						16
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			14,650						19,843						19,512						38,564						45,957						14,650						45,957
Residential real estate			8,879						7,432						8,305						9,416						9,480						8,879						9,480
Home equity			3,331						3,377						2,922						2,735						3,376						3,331						3,376
Installment			170						163						88						91						115						170						115
Nonaccrual loans			38,922						45,454						48,392						65,966						86,370						38,922						86,370
Accruing troubled debt restructurings (TDRs)			11,225						8,055						11,616						11,448						12,070						11,225						12,070
Total nonperforming loans			50,147						53,509						60,008						77,414						98,440						50,147						98,440
Other real estate owned (OREO)			22						72						98						340						340						22						340
Total nonperforming assets			50,169						53,581						60,106						77,754						98,780						50,169						98,780
Accruing loans past due 90 days or more			142						180						137						104						155						142						155
Total underperforming assets			$	50,311					$	53,761					$	60,243					$	77,858					$	98,935					$	50,311					$	98,935
Total classified assets			$	119,769					$	106,839					$	104,815					$	165,462					$	182,516					$	119,769					$	182,516
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans			302.87		%				273.09		%				272.76		%				225.73		%				184.77		%				302.87		%				184.77		%
Nonperforming loans			235.08		%				231.98		%				219.96		%				192.35		%				162.12		%				235.08		%				162.12		%
Total ending loans			1.25		%				1.34		%				1.42		%				1.59		%				1.68		%				1.25		%				1.68		%
Nonperforming loans to total loans			0.53		%				0.58		%				0.65		%				0.83		%				1.03		%				0.53		%				1.03		%
Nonaccrual loans to total loans			0.41		%				0.49		%				0.52		%				0.70		%				0.91		%				0.41		%				0.91		%
Nonperforming assets to
Ending loans, plus OREO			0.53		%				0.58		%				0.65		%				0.83		%				1.04		%				0.53		%				1.04		%
Total assets			0.31		%				0.33		%				0.37		%				0.49		%				0.62		%				0.31		%				0.62		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO			0.41		%				0.49		%				0.52		%				0.71		%				0.91		%				0.41		%				0.91		%
Total assets			0.24		%				0.28		%				0.30		%				0.42		%				0.54		%				0.24		%				0.54		%
Classified assets to total assets			0.74		%				0.67		%				0.64		%				1.04		%				1.14		%				0.74		%				1.14		%
(1) Nonaccrual loans include nonaccrual TDRs of $9.5 million, $16.2 million, $16.0 million, $20.3 million, and $21.5 million, as of June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively.

10

---

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																																	Six months ended,
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,						June 30,
			2022						2022						2021						2021						2021						2022						2021
PER COMMON SHARE
Market Price
High			$	23.03					$	26.73					$	25.79					$	24.06					$	26.02					$	26.73					$	26.40
Low			$	19.09					$	22.92					$	22.89					$	21.48					$	23.35					$	19.09					$	17.62
Close			$	19.40					$	23.05					$	24.38					$	23.41					$	23.63					$	19.40					$	23.63
Average shares outstanding - basic			93,555,131						93,383,932						92,903,900						94,289,097						96,123,645						93,470,005						96,496,720
Average shares outstanding - diluted			94,449,817						94,263,925						93,761,909						95,143,930						97,009,712						94,357,392						97,366,640
Ending shares outstanding			94,448,792						94,451,496						94,149,240						93,742,797						96,199,509						94,448,792						96,199,509
Total shareholders' equity			$	2,068,670					$	2,137,445					$	2,258,942					$	2,236,170					$	2,269,507					$	2,068,670					$	2,269,507
REGULATORY CAPITAL			Preliminary																														Preliminary
Common equity tier 1 capital			$	1,307,259					$	1,272,115					$	1,262,789					$	1,316,059					$	1,333,209					$	1,307,259					$	1,333,209
Common equity tier 1 capital ratio			10.91		%				10.87		%				10.84		%				11.54		%				11.78		%				10.91		%				11.78		%
Tier 1 capital			$	1,351,287					$	1,316,020					$	1,306,571					$	1,359,297					$	1,376,333					$	1,351,287					$	1,376,333
Tier 1 ratio			11.28		%				11.24		%				11.22		%				11.92		%				12.16		%				11.28		%				12.16		%
Total capital			$	1,670,367					$	1,635,003					$	1,642,549					$	1,706,513					$	1,732,930					$	1,670,367					$	1,732,930
Total capital ratio			13.94		%				13.97		%				14.10		%				14.97		%				15.31		%				13.94		%				15.31		%
Total capital in excess of minimum requirement			$	412,432					$	406,011					$	419,754					$	509,536					$	544,478					$	412,432					$	544,478
Total risk-weighted assets			$	11,980,331					$	11,704,681					$	11,645,666					$	11,399,782					$	11,318,590					$	11,980,331					$	11,318,590
Leverage ratio			8.76		%				8.64		%				8.70		%				9.05		%				9.14		%				8.76		%				9.14		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets			12.74		%				13.35		%				13.83		%				14.01		%				14.15		%				12.74		%				14.15		%
Ending tangible shareholders' equity to ending tangible assets (1)			6.40		%				6.95		%				7.58		%				8.21		%				8.37		%				6.40		%				8.37		%
Average shareholders' equity to average assets			12.97		%				13.75		%				13.98		%				14.14		%				13.96		%				13.36		%				14.06		%
Average tangible shareholders' equity to average tangible assets (1)			6.62		%				7.44		%				8.20		%				8.35		%				8.23		%				7.03		%				8.30		%
REPURCHASE PROGRAM (2)
Shares repurchased			0						0						0						2,484,295						1,308,945						0						2,149,060
Average share repurchase price			N/A						N/A						N/A						$	23.04					$	25.11					N/A						$	23.66
Total cost of shares repurchased			N/A						N/A						N/A						$	57,231					$	32,864					N/A						$	50,846
(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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