EX-99.1 2 a8k3q22earningsreleaseex991.htm EX-99.1

                                                Exhibit 99.1

First Financial Bancorp Announces Third Quarter 2022 Financial Results

•Earnings per diluted share of $0.59; $0.61 on an adjusted(1) basis

•Return on average assets of 1.35%; 1.40% on an adjusted(1) basis

•Net interest margin on FTE basis(1) of 3.98%; 53 bp increase from linked quarter

•Loan growth of $377.0 million; 15.9% on an annualized basis

•Strong credit quality with declines in net charge-offs, classified and nonperforming assets from the linked quarter

Cincinnati, Ohio - October 20, 2022. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and nine months ended September 30, 2022.

For the three months ended September 30, 2022, the Company reported net income of $55.7 million, or $0.59 per diluted common share. These results compare to net income of $51.5 million, or $0.55 per diluted common share, for the second quarter of 2022. For the nine months ended September 30, 2022, First Financial had earnings per diluted share of $1.57 compared to $1.64 for the same period in 2021.

Return on average assets for the third quarter of 2022 was 1.35% while return on average tangible common equity was 22.29%(1). These compare to return on average assets of 1.28% and return on average tangible common equity of 20.68%(1) in the second quarter of 2022.

Third quarter 2022 highlights include:

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

◦Loan balances increased $377.0 million compared to the second quarter

◦Growth of 15.9% on an annualized basis

◦Broad based portfolio growth

•Net interest margin of 3.93%, or 3.98% on a fully tax-equivalent basis(1), exceeded expectations

◦53 bp increase to 3.98% from 3.45% in the second quarter due to higher asset yields resulting from higher interest rates

◦89 bp increase in loan yields offset 11 basis point increase in cost of deposits

•Noninterest income of $42.5 million, or $43.4 million as adjusted(1)

◦Foreign exchange income of $11.8 million exceeded expectations; 12.8% decline from record second quarter

◦Leasing business income of $7.1 million; consistent with second quarter

◦Wealth management fees remained strong at $5.5 million

◦Mortgage banking revenue decreased $1.5 million; 28.8% decrease from the linked quarter

◦Other noninterest income decreased $1.4 million in current quarter due to elevated income from investments in limited partnerships in second quarter

◦Adjusted(1) for $0.9 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 September 30, 2022, 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 $125.1 million, or $106.1 million as adjusted(1)

◦Adjustments(1) include $17.2 million tax credit investment writedown and $1.4 million of severance costs

◦Increase driven by elevated incentive costs tied to Company performance and higher leasing business expenses during the period

◦Efficiency ratio of 69.3%; 58.5% as adjusted(1)

•Total Allowance for Credit Losses of $141.1 million; Total quarterly provision expense of $8.3 million

◦Loans and leases - ACL of $124.1 million, 1.27% of total loans

◦Unfunded Commitments - ACL of $17.0 million

◦Provision expense driven by loan growth and slower prepayment speeds

◦Net charge-offs declined slightly to 7 bps of average loans and leases

•Regulatory capital ratios remain in excess of internal targets

◦Total capital ratio of 13.73%

◦Tier 1 common equity decreased 9 bps to 10.82%

◦Tangible common equity of 5.79%(1); 8.07%(1) excluding impact from AOCI

◦Tangible book value per share of $9.48(1)

Archie Brown, President and CEO, commented on the quarter, “We are very excited about our third quarter performance. Adjusted earnings per share increased approximately 9% from the second quarter due to record revenue, which was driven by an 18% increase in net interest income. Recent rate increases continued to positively impact our asset sensitive balance sheet as our net interest margin accelerated by 53 basis points.”

Mr. Brown continued, “Credit trends remained stable across the portfolio with slight reductions in non-performing loan and net charge off ratios. Even with these improvements, our loan loss reserve grew modestly to account for loan growth and the intermediate economic outlook.”

Mr. Brown commented on loan growth, “We were very pleased with loan growth in the third quarter. Loan balances increased by $377 million or 15.9% on an annualized basis, which was driven by increases in C&I, Consumer and Residential Mortgage. Given our expectations for the economy in the near-term and moderating loan pipelines, we expect loan growth to ease in the coming months.”

Mr. Brown continued, “Non-interest income was once again negatively impacted by rising rates and changes made to our overdraft program. We also experienced an expected decline in foreign exchange income from a record second quarter and mortgage activity suffered from softening demand. While we expect headwinds in the fourth quarter, we anticipate that fee income will increase modestly to close the year.”

Mr. Brown concluded, "Our third quarter performance was strong and we are optimistic we can sustain this momentum over the remainder of 2022 and into the new year. Our balance sheet is well positioned for rising rates. In addition, with a loan to deposit ratio under 80%, strong liquidity and positive credit trends, we believe we are well situated to manage a potential economic downturn.”

Full detail of the Company’s third 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, October 21, 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 202818. 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 986167. The recording will be available until November 4, 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 September 30, 2022, the Company had $16.6 billion in assets, $9.8 billion in loans, $12.3 billion in deposits and $2.0 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 September 30, 2022. The Company operated 134 full service banking centers as of September 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

September 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			8-9
Credit Quality			10
Capital Adequacy			11

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FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
			Three Months Ended,																														Nine months ended,
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						Sep. 30,
			2022						2022						2022						2021						2021						2022						2021
RESULTS OF OPERATIONS
Net income			$	55,705					$	51,520					$	41,301					$	46,945					$	60,012					$	148,526					$	158,215
Net earnings per share - basic			$	0.60					$	0.55					$	0.44					$	0.51					$	0.64					$	1.59					$	1.65
Net earnings per share - diluted			$	0.59					$	0.55					$	0.44					$	0.50					$	0.63					$	1.57					$	1.64
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.23					$	0.69					$	0.69
KEY FINANCIAL RATIOS
Return on average assets			1.35		%				1.28		%				1.03		%				1.16		%				1.49		%				1.22		%				1.32		%
Return on average shareholders' equity			10.58		%				9.84		%				7.53		%				8.31		%				10.53		%				9.29		%				9.34		%
Return on average tangible shareholders' equity (1)			22.29		%				20.68		%				14.93		%				15.11		%				19.03		%				19.14		%				16.87		%
Net interest margin			3.93		%				3.41		%				3.11		%				3.19		%				3.28		%				3.49		%				3.30		%
Net interest margin (fully tax equivalent) (1)(2)			3.98		%				3.45		%				3.16		%				3.23		%				3.32		%				3.53		%				3.34		%
Ending shareholders' equity as a percent of ending assets			12.00		%				12.74		%				13.35		%				13.83		%				14.01		%				12.00		%				14.01		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)			5.79		%				6.40		%				6.95		%				7.58		%				8.21		%				5.79		%				8.21		%
Risk-weighted assets (1)			7.21		%				8.09		%				8.85		%				9.91		%				10.76		%				7.21		%				10.76		%
Average shareholders' equity as a percent of average assets			12.75		%				12.97		%				13.75		%				13.98		%				14.14		%				13.15		%				14.09		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)			6.49		%				6.62		%				7.44		%				8.20		%				8.35		%				6.85		%				8.32		%
Book value per share			$	21.03					$	21.90					$	22.63					$	23.99					$	23.85					$	21.03					$	23.85
Tangible book value per share (1)			$	9.48					$	10.27					$	10.97					$	12.26					$	13.09					$	9.48					$	13.09
Common equity tier 1 ratio (3)			10.82		%				10.91		%				10.87		%				10.85		%				11.55		%				10.82		%				11.55		%
Tier 1 ratio (3)			11.17		%				11.28		%				11.24		%				11.22		%				11.92		%				11.17		%				11.92		%
Total capital ratio (3)			13.73		%				13.94		%				13.97		%				14.11		%				14.97		%				13.73		%				14.97		%
Leverage ratio (3)			8.88		%				8.76		%				8.64		%				8.70		%				9.05		%				8.88		%				9.05		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)			$	9,597,197					$	9,367,820					$	9,266,774					$	9,283,227					$	9,502,750					$	9,411,807					$	9,760,545
Investment securities			4,003,472						4,118,287						4,308,059						4,343,513						4,189,253						4,142,157						4,035,639
Interest-bearing deposits with other banks			317,146						294,136						273,763						166,904						32,400						295,174						41,582
Total earning assets			$	13,917,815					$	13,780,243					$	13,848,596					$	13,793,644					$	13,724,403					$	13,849,138					$	13,837,766
Total assets			$	16,385,989					$	16,185,978					$	16,184,919					$	16,036,417					$	15,995,808					$	16,253,031					$	16,084,472
Noninterest-bearing deposits			$	4,176,242					$	4,224,842					$	4,160,175					$	4,191,457					$	3,981,404					$	4,187,145					$	3,942,210
Interest-bearing deposits			8,194,781						8,312,876						8,623,800						8,693,792						8,685,949						8,375,581						8,642,339
Total deposits			$	12,371,023					$	12,537,718					$	12,783,975					$	12,885,249					$	12,667,353					$	12,562,726					$	12,584,549
Borrowings			$	1,406,718					$	1,079,596					$	721,695					$	396,743					$	562,964					$	1,071,845					$	731,634
Shareholders' equity			$	2,089,179					$	2,099,670					$	2,225,495					$	2,241,820					$	2,261,293					$	2,137,615					$	2,265,868
CREDIT QUALITY RATIOS
Allowance to ending loans			1.27		%				1.25		%				1.34		%				1.42		%				1.59		%				1.27		%				1.59		%
Allowance to nonaccrual loans			339.95		%				302.87		%				273.09		%				272.76		%				225.73		%				339.95		%				225.73		%
Allowance to nonperforming loans			261.11		%				235.08		%				231.98		%				219.96		%				192.35		%				261.11		%				192.35		%
Nonperforming loans to total loans			0.49		%				0.53		%				0.58		%				0.65		%				0.83		%				0.49		%				0.83		%
Nonaccrual loans to total loans			0.37		%				0.41		%				0.49		%				0.52		%				0.70		%				0.37		%				0.70		%
Nonperforming assets to ending loans, plus OREO			0.49		%				0.53		%				0.58		%				0.65		%				0.83		%				0.49		%				0.83		%
Nonperforming assets to total assets			0.29		%				0.31		%				0.33		%				0.37		%				0.49		%				0.29		%				0.49		%
Classified assets to total assets			0.69		%				0.74		%				0.67		%				0.64		%				1.04		%				0.69		%				1.04		%
Net charge-offs to average loans (annualized)			0.07		%				0.08		%				0.10		%				0.32		%				0.10		%				0.08		%				0.24		%

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

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

(3) September 30, 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,																		Nine months ended,
			Sep. 30,																		Sep. 30,
			2022						2021						% Change						2022						2021						% Change
Interest income
Loans and leases, including fees			$	122,170					$	96,428					26.7		%				$	306,443					$	292,853					4.6		%
Investment securities
Taxable			26,331						20,088						31.1		%				72,066						58,219						23.8		%
Tax-exempt			5,014						4,282						17.1		%				14,361						14,196						1.2		%
Total investment securities interest			31,345						24,370						28.6		%				86,427						72,415						19.3		%
Other earning assets			1,597						23						N/M						2,222						76						N/M
Total interest income			155,112						120,821						28.4		%				395,092						365,344						8.1		%
Interest expense
Deposits			6,386						3,320						92.3		%				11,972						11,346						5.5		%
Short-term borrowings			6,158						68						N/M						8,041						188						N/M
Long-term borrowings			4,676						4,023						16.2		%				13,832						12,498						10.7		%
Total interest expense			17,220						7,411						132.4		%				33,845						24,032						40.8		%
Net interest income			137,892						113,410						21.6		%				361,247						341,312						5.8		%
Provision for credit losses-loans and leases			7,898						(8,193)						(196.4)		%				(1,958)						(9,499)						(79.4)		%
Provision for credit losses-unfunded commitments			386						(1,951)						(119.8)		%				3,641						(896)						(506.4)		%
Net interest income after provision for credit losses			129,608						123,554						4.9		%				359,564						351,707						2.2		%
Noninterest income
Service charges on deposit accounts			6,279						8,548						(26.5)		%				21,656						23,231						(6.8)		%
Trust and wealth management fees			5,487						5,896						(6.9)		%				17,858						17,742						0.7		%
Bankcard income			3,484						3,838						(9.2)		%				10,644						10,698						(0.5)		%
Client derivative fees			1,447						2,273						(36.3)		%				3,619						5,624						(35.7)		%
Foreign exchange income			11,752						9,191						27.9		%				35,373						31,985						10.6		%
Leasing business income			7,127						0						100.0		%				20,450						0						100.0		%
Net gains from sales of loans			3,729						8,586						(56.6)		%				12,842						26,529						(51.6)		%
Net gain (loss) on sale of investment securities			(179)						(314)						(43.0)		%				(176)						(745)						(76.4)		%
Net gain (loss) on equity securities			(701)						108						N/M						(1,954)						381						N/M
Other			4,109						4,411						(6.8)		%				13,294						10,401						27.8		%
Total noninterest income			42,534						42,537						0.0		%				133,606						125,846						6.2		%
Noninterest expenses
Salaries and employee benefits			66,808						61,717						8.2		%				195,747						183,754						6.5		%
Net occupancy			5,669						5,571						1.8		%				16,774						16,810						(0.2)		%
Furniture and equipment			3,222						3,318						(2.9)		%				9,990						10,658						(6.3)		%
Data processing			8,497						7,951						6.9		%				25,095						23,102						8.6		%
Marketing			2,523						2,435						3.6		%				6,546						5,831						12.3		%
Communication			657						669						(1.8)		%				1,993						2,253						(11.5)		%
Professional services			2,346						2,199						6.7		%				6,719						5,678						18.3		%
State intangible tax			1,090						1,202						(9.3)		%				3,311						3,605						(8.2)		%
FDIC assessments			1,885						1,466						28.6		%				5,021						4,177						20.2		%
Intangible amortization			2,783						2,479						12.3		%				8,612						7,438						15.8		%
Leasing business expense			5,746						0						100.0		%				14,302						0						100.0		%
Other			23,842						10,051						137.2		%				36,797						27,901						31.9		%
Total noninterest expenses			125,068						99,058						26.3		%				330,907						291,207						13.6		%
Income before income taxes			47,074						67,033						(29.8)		%				162,263						186,346						(12.9)		%
Income tax expense (benefit)			(8,631)						7,021						(222.9)		%				13,737						28,131						(51.2)		%
Net income			$	55,705					$	60,012					(7.2)		%				$	148,526					$	158,215					(6.1)		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.60					$	0.64											$	1.59					$	1.65
Net earnings per share - diluted			$	0.59					$	0.63											$	1.57					$	1.64
Dividends declared per share			$	0.23					$	0.23											$	0.69					$	0.69
Return on average assets			1.35		%				1.49		%										1.22		%				1.32		%
Return on average shareholders' equity			10.58		%				10.53		%										9.29		%				9.34		%
Interest income			$	155,112					$	120,821					28.4		%				$	395,092					$	365,344					8.1		%
Tax equivalent adjustment			1,712						1,434						19.4		%				4,804						4,705						2.1		%
Interest income - tax equivalent			156,824						122,255						28.3		%				399,896						370,049						8.1		%
Interest expense			17,220						7,411						132.4		%				33,845						24,032						40.8		%
Net interest income - tax equivalent			$	139,604					$	114,844					21.6		%				$	366,051					$	346,017					5.8		%
Net interest margin			3.93		%				3.28		%										3.49		%				3.30		%
Net interest margin (fully tax equivalent) (1)			3.98		%				3.32		%										3.53		%				3.34		%
Full-time equivalent employees			2,072						2,026
(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
									Third						Second						First						Year to						% Change
									Quarter						Quarter						Quarter						Date						Linked Qtr.
Interest income
Loans and leases, including fees									$	122,170					$	97,091					$	87,182					$	306,443					25.8		%
Investment securities
Taxable									26,331						23,639						22,096						72,066						11.4		%
Tax-exempt									5,014						4,916						4,431						14,361						2.0		%
Total investment securities interest									31,345						28,555						26,527						86,427						9.8		%
Other earning assets									1,597						505						120						2,222						216.2		%
Total interest income									155,112						126,151						113,829						395,092						23.0		%
Interest expense
Deposits									6,386						2,963						2,623						11,972						115.5		%
Short-term borrowings									6,158						1,566						317						8,041						293.2		%
Long-term borrowings									4,676						4,612						4,544						13,832						1.4		%
Total interest expense									17,220						9,141						7,484						33,845						88.4		%
Net interest income									137,892						117,010						106,345						361,247						17.8		%
Provision for credit losses-loans and leases									7,898						(4,267)						(5,589)						(1,958)						(285.1)		%
Provision for credit losses-unfunded commitments									386						3,481						(226)						3,641						(88.9)		%
Net interest income after provision for credit losses									129,608						117,796						112,160						359,564						10.0		%
Noninterest income
Service charges on deposit accounts									6,279						7,648						7,729						21,656						(17.9)		%
Trust and wealth management fees									5,487						6,311						6,060						17,858						(13.1)		%
Bankcard income									3,484						3,823						3,337						10,644						(8.9)		%
Client derivative fees									1,447						1,369						803						3,619						5.7		%
Foreign exchange income									11,752						13,470						10,151						35,373						(12.8)		%
Leasing business income									7,127						7,247						6,076						20,450						(1.7)		%
Net gains from sales of loans									3,729						5,241						3,872						12,842						(28.8)		%
Net gain (loss) on sale of investment securities									(179)						0						3						(176)						(100.0)		%
Net gain (loss) on equity securities									(701)						(1,054)						(199)						(1,954)						(33.5)		%
Other									4,109						5,723						3,462						13,294						(28.2)		%
Total noninterest income									42,534						49,778						41,294						133,606						(14.6)		%
Noninterest expenses
Salaries and employee benefits									66,808						64,992						63,947						195,747						2.8		%
Net occupancy									5,669						5,359						5,746						16,774						5.8		%
Furniture and equipment									3,222						3,201						3,567						9,990						0.7		%
Data processing									8,497						8,334						8,264						25,095						2.0		%
Marketing									2,523						2,323						1,700						6,546						8.6		%
Communication									657						670						666						1,993						(1.9)		%
Professional services									2,346						2,214						2,159						6,719						6.0		%
State intangible tax									1,090						1,090						1,131						3,311						0.0		%
FDIC assessments									1,885						1,677						1,459						5,021						12.4		%
Intangible amortization									2,783						2,915						2,914						8,612						(4.5)		%
Leasing business expense									5,746						4,687						3,869						14,302						22.6		%
Other									23,842						5,572						7,383						36,797						327.9		%
Total noninterest expenses									125,068						103,034						102,805						330,907						21.4		%
Income before income taxes									47,074						64,540						50,649						162,263						(27.1)		%
Income tax expense (benefit)									(8,631)						13,020						9,348						13,737						(166.3)		%
Net income									$	55,705					$	51,520					$	41,301					$	148,526					8.1		%
ADDITIONAL DATA
Net earnings per share - basic									$	0.60					$	0.55					$	0.44					$	1.59
Net earnings per share - diluted									$	0.59					$	0.55					$	0.44					$	1.57
Dividends declared per share									$	0.23					$	0.23					$	0.23					$	0.69
Return on average assets									1.35		%				1.28		%				1.03		%				1.22		%
Return on average shareholders' equity									10.58		%				9.84		%				7.53		%				9.29		%
Interest income									$	155,112					$	126,151					$	113,829					$	395,092					23.0		%
Tax equivalent adjustment									1,712						1,625						1,467						4,804						5.4		%
Interest income - tax equivalent									156,824						127,776						115,296						399,896						22.7		%
Interest expense									17,220						9,141						7,484						33,845						88.4		%
Net interest income - tax equivalent									$	139,604					$	118,635					$	107,812					$	366,051					17.7		%
Net interest margin									3.93		%				3.41		%				3.11		%				3.49		%
Net interest margin (fully tax equivalent) (1)									3.98		%				3.45		%				3.16		%				3.53		%
Full-time equivalent employees									2,072						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)
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						% Change						% Change
			2022						2022						2022						2021						2021						Linked Qtr.						Comp Qtr.
ASSETS
Cash and due from banks			$	195,553					$	217,481					$	214,571					$	220,031					$	209,748					(10.1)		%				(6.8)		%
Interest-bearing deposits with other banks			338,978						270,042						243,004						214,811						29,799						25.5		%				1,037.5		%
Investment securities available-for-sale			3,531,353						3,843,580						3,957,882						4,207,846						4,114,094						(8.1)		%				(14.2)		%
Investment securities held-to-maturity			85,823						88,057						92,597						98,420						103,886						(2.5)		%				(17.4)		%
Other investments			138,767						132,151						114,563						102,971						97,831						5.0		%				41.8		%
Loans held for sale			10,684						22,044						12,670						29,482						33,835						(51.5)		%				(68.4)		%
Loans and leases
Commercial and industrial			3,139,219						2,927,175						2,800,209						2,720,028						2,602,848						7.2		%				20.6		%
Lease financing			176,072						146,639						125,867						109,624						67,855						20.1		%				159.5		%
Construction real estate			489,446						449,734						479,744						455,894						477,004						8.8		%				2.6		%
Commercial real estate			3,976,345						4,007,037						4,031,484						4,226,614						4,438,374						(0.8)		%				(10.4)		%
Residential real estate			1,024,596						965,387						913,838						896,069						922,492						6.1		%				11.1		%
Home equity			737,318						725,700						707,973						708,399						709,050						1.6		%				4.0		%
Installment			202,267						146,680						132,197						119,454						96,077						37.9		%				110.5		%
Credit card			52,173						52,065						50,305						52,217						47,231						0.2		%				10.5		%
Total loans			9,797,436						9,420,417						9,241,617						9,288,299						9,360,931						4.0		%				4.7		%
Less:
Allowance for credit losses			(124,096)						(117,885)						(124,130)						(131,992)						(148,903)						5.3		%				(16.7)		%
Net loans			9,673,340						9,302,532						9,117,487						9,156,307						9,212,028						4.0		%				5.0		%
Premises and equipment			189,067						191,099						190,975						193,040						192,580						(1.1)		%				(1.8)		%
Operating leases			84,851						82,659						61,927						60,811						0						2.7		%				100.0		%
Goodwill			998,422						999,959						999,959						1,000,749						937,771						(0.2)		%				6.5		%
Other intangibles			96,528						99,019						101,673						104,367						71,663						(2.5)		%				34.7		%
Accrued interest and other assets			1,280,427						995,091						901,842						940,306						953,358						28.7		%				34.3		%
Total Assets			$	16,623,793					$	16,243,714					$	16,009,150					$	16,329,141					$	15,956,593					2.3		%				4.2		%
LIABILITIES
Deposits
Interest-bearing demand			$	2,980,465					$	3,096,365					$	3,246,646					$	3,198,745					$	2,916,860					(3.7)		%				2.2		%
Savings			3,980,020						4,029,717						4,188,867						4,157,374						4,223,905						(1.2)		%				(5.8)		%
Time			1,242,412						1,026,918						1,121,966						1,330,263						1,517,419						21.0		%				(18.1)		%
Total interest-bearing deposits			8,202,897						8,153,000						8,557,479						8,686,382						8,658,184						0.6		%				(5.3)		%
Noninterest-bearing			4,137,038						4,124,111						4,261,429						4,185,572						4,019,197						0.3		%				2.9		%
Total deposits			12,339,935						12,277,111						12,818,908						12,871,954						12,677,381						0.5		%				(2.7)		%
Federal funds purchased and securities sold
under agreements to repurchase			3,535						0						0						51,203						81,850						100.0		%				(95.7)		%
FHLB short-term borrowings			972,600						896,000						185,000						225,000						107,000						8.5		%				809.0		%
Other			184,912						152,226						57,247						20,000						0						21.5		%				100.0		%
Total short-term borrowings			1,161,047						1,048,226						242,247						296,203						188,850						10.8		%				514.8		%
Long-term debt			355,116						358,578						379,840						409,832						313,230						(1.0)		%				13.4		%
Total borrowed funds			1,516,163						1,406,804						622,087						706,035						502,080						7.8		%				202.0		%
Accrued interest and other liabilities			773,563						491,129						430,710						492,210						540,962						57.5		%				43.0		%
Total Liabilities			14,629,661						14,175,044						13,871,705						14,070,199						13,720,423						3.2		%				6.6		%
SHAREHOLDERS' EQUITY
Common stock			1,631,696						1,637,237						1,634,903						1,640,358						1,637,065						(0.3)		%				(0.3)		%
Retained earnings			920,943						887,006						857,178						837,473						812,082						3.8		%				13.4		%
Accumulated other comprehensive income (loss)			(354,570)						(243,328)						(142,477)						(433)						14,230						45.7		%				N/M
Treasury stock, at cost			(203,937)						(212,245)						(212,159)						(218,456)						(227,207)						(3.9)		%				(10.2)		%
Total Shareholders' Equity			1,994,132						2,068,670						2,137,445						2,258,942						2,236,170						(3.6)		%				(10.8)		%
Total Liabilities and Shareholders' Equity			$	16,623,793					$	16,243,714					$	16,009,150					$	16,329,141					$	15,956,593					2.3		%				4.2		%

6

---

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Quarterly Averages																														Year-to-Date Averages
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						Sep. 30,
			2022						2022						2022						2021						2021						2022						2021
ASSETS
Cash and due from banks			$	228,068					$	248,463					$	241,271					$	253,091					$	245,212					$	239,219					$	238,531
Interest-bearing deposits with other banks			317,146						294,136						273,763						166,904						32,400						295,174						41,582
Investment securities			4,003,472						4,118,287						4,308,059						4,343,513						4,189,253						4,142,157						4,035,639
Loans held for sale			12,283						15,446						15,589						24,491						28,365						14,427						28,796
Loans and leases
Commercial and industrial			3,040,547						2,884,373						2,736,613						2,552,686						2,634,306						2,888,291						2,870,954
Lease financing			158,667						134,334						115,703						67,537						67,159						136,392						67,918
Construction real estate			469,489						460,609						474,278						460,588						567,091						468,108						614,737
Commercial real estate			3,969,935						4,025,493						4,139,072						4,391,328						4,413,003						4,044,214						4,375,280
Residential real estate			998,476						936,165						903,567						917,399						937,969						946,417						952,939
Home equity			728,791						716,219						703,714						709,954						710,794						716,333						714,723
Installment			164,063						140,145						125,579						106,188						93,937						143,403						86,740
Credit card			54,946						55,036						52,659						53,056						50,126						54,222						48,458
Total loans			9,584,914						9,352,374						9,251,185						9,258,736						9,474,385						9,397,380						9,731,749
Less:
Allowance for credit losses			(119,000)						(123,950)						(129,601)						(144,756)						(157,727)						(124,145)						(168,449)
Net loans			9,465,914						9,228,424						9,121,584						9,113,980						9,316,658						9,273,235						9,563,300
Premises and equipment			190,738						191,895						192,832						192,941						193,775						191,814						200,273
Operating leases			83,970						73,862						61,297						659						0						73,126						0
Goodwill			999,690						999,958						1,000,238						938,453						937,771						999,960						937,771
Other intangibles			97,781						100,354						103,033						71,006						72,529						100,370						74,335
Accrued interest and other assets			986,927						915,153						867,253						931,379						979,845						923,549						964,245
Total Assets			$	16,385,989					$	16,185,978					$	16,184,919					$	16,036,417					$	15,995,808					$	16,253,031					$	16,084,472
LIABILITIES
Deposits
Interest-bearing demand			$	3,105,547					$	3,180,846					$	3,246,919					$	3,069,416					$	2,960,388					$	3,177,253					$	2,961,043
Savings			4,036,565						4,076,380						4,145,615						4,195,504						4,150,610						4,085,787						4,021,895
Time			1,052,669						1,055,650						1,231,266						1,428,872						1,574,951						1,112,541						1,659,401
Total interest-bearing deposits			8,194,781						8,312,876						8,623,800						8,693,792						8,685,949						8,375,581						8,642,339
Noninterest-bearing			4,176,242						4,224,842						4,160,175						4,191,457						3,981,404						4,187,145						3,942,210
Total deposits			12,371,023						12,537,718						12,783,975						12,885,249						12,667,353						12,562,726						12,584,549
Federal funds purchased and securities sold
under agreements to repurchase			32,637						24,229						45,358						79,382						186,401						34,028						188,461
FHLB short-term borrowings			892,786						586,846						257,800						2,445						63,463						581,470						57,163
Other			131,237						109,353						33,297						654						0						91,654						0
Total short-term borrowings			1,056,660						720,428						336,455						82,481						249,864						707,152						245,624
Long-term debt			350,058						359,168						385,240						314,262						313,100						364,693						486,010
Total borrowed funds			1,406,718						1,079,596						721,695						396,743						562,964						1,071,845						731,634
Accrued interest and other liabilities			519,069						468,994						453,754						512,605						504,198						480,845						502,421
Total Liabilities			14,296,810						14,086,308						13,959,424						13,794,597						13,734,515						14,115,416						13,818,604
SHAREHOLDERS' EQUITY
Common stock			1,631,078						1,635,990						1,638,321						1,637,828						1,635,833						1,635,103						1,635,552
Retained earnings			899,524						866,910						841,652						822,500						783,760						869,574						755,066
Accumulated other comprehensive loss			(236,566)						(190,949)						(38,448)						8,542						36,917						(156,047)						34,981
Treasury stock, at cost			(204,857)						(212,281)						(216,030)						(227,050)						(195,217)						(211,015)						(159,731)
Total Shareholders' Equity			2,089,179						2,099,670						2,225,495						2,241,820						2,261,293						2,137,615						2,265,868
Total Liabilities and Shareholders' Equity			$	16,385,989					$	16,185,978					$	16,184,919					$	16,036,417					$	15,995,808					$	16,253,031					$	16,084,472

7

---

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
						Quarterly Averages																																																																																							Year-to-Date Averages
						September 30, 2022																		June 30, 2022																		September 30, 2021																											September 30, 2022												September 30, 2021
						Balance						Interest						Yield						Balance						Interest						Yield						Balance						Interest						Yield																																							Balance						Yield						Balance						Yield
Earning assets
Investments:
Investment securities						$	4,003,472					$	31,345					3.11		%				$	4,118,287					$	28,555					2.78		%				$	4,189,253					$	24,370					2.31		%																																					$	4,142,157					2.79		%				$	4,035,639					2.40		%
Interest-bearing deposits with other banks						317,146						1,597						2.00		%				294,136						505						0.69		%				32,400						23						0.28		%																																					295,174						1.01		%				41,582						0.24		%
Gross loans (1)						9,597,197						122,170						5.05		%				9,367,820						97,091						4.16		%				9,502,750						96,428						4.03		%																																					9,411,807						4.35		%				9,760,545						4.01		%
Total earning assets						13,917,815						155,112						4.42		%				13,780,243						126,151						3.67		%				13,724,403						120,821						3.49		%																																					13,849,138						3.81		%				13,837,766						3.53		%
Nonearning assets
Allowance for credit losses						(119,000)																		(123,950)																		(157,727)																																																			(124,145)												(168,449)
Cash and due from banks						228,068																		248,463																		245,212																																																			239,219												238,531
Accrued interest and other assets						2,359,106																		2,281,222																		2,183,920																																																			2,288,819												2,176,624
Total assets						$	16,385,989																	$	16,185,978																	$	15,995,808																																																		$	16,253,031											$	16,084,472
Interest-bearing liabilities
Deposits:
Interest-bearing demand						$	3,105,547					$	2,404					0.31		%				$	3,180,846					$	842					0.11		%				$	2,960,388					$	446					0.06		%																																					$	3,177,253					0.16		%				$	2,961,043					0.07		%
Savings						4,036,565						2,199						0.22		%				4,076,380						1,003						0.10		%				4,150,610						938						0.09		%																																					4,085,787						0.13		%				4,021,895						0.11		%
Time						1,052,669						1,783						0.67		%				1,055,650						1,118						0.42		%				1,574,951						1,936						0.49		%																																					1,112,541						0.50		%				1,659,401						0.54		%
Total interest-bearing deposits						8,194,781						6,386						0.31		%				8,312,876						2,963						0.14		%				8,685,949						3,320						0.15		%																																					8,375,581						0.19		%				8,642,339						0.18		%
Borrowed funds
Short-term borrowings						1,056,660						6,158						2.31		%				720,428						1,566						0.87		%				249,864						68						0.11		%																																					707,152						1.52		%				245,624						0.10		%
Long-term debt						350,058						4,676						5.30		%				359,168						4,612						5.15		%				313,100						4,023						5.10		%																																					364,693						5.07		%				486,010						3.44		%
Total borrowed funds						1,406,718						10,834						3.06		%				1,079,596						6,178						2.30		%				562,964						4,091						2.88		%																																					1,071,845						2.73		%				731,634						2.32		%
Total interest-bearing liabilities						9,601,499						17,220						0.71		%				9,392,472						9,141						0.39		%				9,248,913						7,411						0.32		%																																					9,447,426						0.48		%				9,373,973						0.34		%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits						4,176,242																		4,224,842																		3,981,404																																																			4,187,145												3,942,210
Other liabilities						519,069																		468,994																		504,198																																																			480,845												502,421
Shareholders' equity						2,089,179																		2,099,670																		2,261,293																																																			2,137,615												2,265,868
Total liabilities & shareholders' equity						$	16,385,989																	$	16,185,978																	$	15,995,808																																																		$	16,253,031											$	16,084,472
Net interest income						$	137,892																	$	117,010																	$	113,410																																																		$	361,247											$	341,312
Net interest spread																		3.71		%																3.28		%																3.17		%																																											3.33		%										3.19		%
Net interest margin																		3.93		%																3.41		%																3.28		%																																											3.49		%										3.30		%
Tax equivalent adjustment																		0.05		%																0.04		%																0.04		%																																											0.04		%										0.04		%
Net interest margin (fully tax equivalent)																		3.98		%																3.45		%																3.32		%																																											3.53		%										3.34		%
(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						$	3,338								$	(548)					$	2,790					$	8,430					$	(1,455)					$	6,975					$	11,789					$	2,223					$	14,012
Interest-bearing deposits with other banks						960									132						1,092						140						1,434						1,574						237						1,909						2,146
Gross loans (2)						20,863									4,216						25,079						24,540						1,202						25,742						24,945						(11,355)						13,590
Total earning assets						25,161									3,800						28,961						33,110						1,181						34,291						36,971						(7,223)						29,748
Interest-bearing liabilities
Total interest-bearing deposits						$	3,445								$	(22)					$	3,423					$	3,449					$	(383)					$	3,066					$	1,007					$	(381)					$	626
Borrowed funds
Short-term borrowings						2,587									2,005						4,592						1,388						4,702						6,090						2,605						5,248						7,853
Long-term debt						134									(70)						64						159						494						653						5,935						(4,601)						1,334
Total borrowed funds						2,721									1,935						4,656						1,547						5,196						6,743						8,540						647						9,187
Total interest-bearing liabilities						6,166									1,913						8,079						4,996						4,813						9,809						9,547						266						9,813
Net interest income (1)						$	18,995								$	1,887					$	20,882					$	28,114					$	(3,632)					$	24,482					$	27,424					$	(7,489)					$	19,935
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.

9

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FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
																																	Nine months ended
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						Sep. 30,						Sep. 30,
			2022						2022						2022						2021						2021						2022						2021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period			$	117,885					$	124,130					$	131,992					$	148,903					$	159,590					$	131,992					$	175,679
Purchase accounting ACL for PCD			0						0						0						17						0						0						0
Provision for credit losses			7,898						(4,267)						(5,589)						(9,525)						(8,193)						(1,958)						(9,499)
Gross charge-offs
Commercial and industrial			1,947						773						2,845						1,364						2,617						5,565						14,256
Lease financing			13						8						131						0						0						152						0
Construction real estate			0						0						0						1,496						0						0						2
Commercial real estate			3						3,419						0						9,150						1,030						3,422						4,321
Residential real estate			119						4						22						6						74						145						121
Home equity			45						22						21						22						200						88						1,051
Installment			294						361						177						184						37						832						150
Credit card			237						212						246						149						230						695						631
Total gross charge-offs			2,658						4,799						3,442						12,371						4,188						10,899						20,532
Recoveries
Commercial and industrial			90						177						379						201						869						646						1,411
Lease financing			13						3						33						0						0						49						0
Construction real estate			0						0						0						0						0						0						3
Commercial real estate			561						2,194						222						4,292						223						2,977						493
Residential real estate			35						34						90						74						56						159						154
Home equity			185						360						265						303						426						810						920
Installment			29						47						21						27						53						97						124
Credit card			58						6						159						71						67						223						150
Total recoveries			971						2,821						1,169						4,968						1,694						4,961						3,255
Total net charge-offs			1,687						1,978						2,273						7,403						2,494						5,938						17,277
Ending allowance for credit losses			$	124,096					$	117,885					$	124,130					$	131,992					$	148,903					$	124,096					$	148,903
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial			0.24		%				0.08		%				0.37		%				0.18		%				0.26		%				0.23		%				0.60		%
Lease financing			0.00		%				0.01		%				0.34		%				0.00		%				0.00		%				0.10		%				0.00		%
Construction real estate			0.00		%				0.00		%				0.00		%				1.29		%				0.00		%				0.00		%				0.00		%
Commercial real estate			(0.06)		%				0.12		%				(0.02)		%				0.44		%				0.07		%				0.01		%				0.12		%
Residential real estate			0.03		%				(0.01)		%				(0.03)		%				(0.03)		%				0.01		%				0.00		%				0.00		%
Home equity			(0.08)		%				(0.19)		%				(0.14)		%				(0.16)		%				(0.13)		%				(0.13)		%				0.02		%
Installment			0.64		%				0.90		%				0.50		%				0.59		%				(0.07)		%				0.69		%				0.04		%
Credit card			1.29		%				1.50		%				0.67		%				0.58		%				1.29		%				1.16		%				1.33		%
Total net charge-offs			0.07		%				0.08		%				0.10		%				0.32		%				0.10		%				0.08		%				0.24		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial			$	8,719					$	11,675					$	14,390					$	17,362					$	15,160					$	8,719					$	15,160
Lease financing			376						217						249						203						0						376						0
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			13,435						14,650						19,843						19,512						38,564						13,435						38,564
Residential real estate			10,250						8,879						7,432						8,305						9,416						10,250						9,416
Home equity			3,445						3,331						3,377						2,922						2,735						3,445						2,735
Installment			279						170						163						88						91						279						91
Nonaccrual loans			36,504						38,922						45,454						48,392						65,966						36,504						65,966
Accruing troubled debt restructurings (TDRs)			11,022						11,225						8,055						11,616						11,448						11,022						11,448
Total nonperforming loans			47,526						50,147						53,509						60,008						77,414						47,526						77,414
Other real estate owned (OREO)			22						22						72						98						340						22						340
Total nonperforming assets			47,548						50,169						53,581						60,106						77,754						47,548						77,754
Accruing loans past due 90 days or more			137						142						180						137						104						137						104
Total underperforming assets			$	47,685					$	50,311					$	53,761					$	60,243					$	77,858					$	47,685					$	77,858
Total classified assets			$	115,131					$	119,769					$	106,839					$	104,815					$	165,462					$	115,131					$	165,462
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans			339.95		%				302.87		%				273.09		%				272.76		%				225.73		%				339.95		%				225.73		%
Nonperforming loans			261.11		%				235.08		%				231.98		%				219.96		%				192.35		%				261.11		%				192.35		%
Total ending loans			1.27		%				1.25		%				1.34		%				1.42		%				1.59		%				1.27		%				1.59		%
Nonperforming loans to total loans			0.49		%				0.53		%				0.58		%				0.65		%				0.83		%				0.49		%				0.83		%
Nonaccrual loans to total loans			0.37		%				0.41		%				0.49		%				0.52		%				0.70		%				0.37		%				0.70		%
Nonperforming assets to
Ending loans, plus OREO			0.49		%				0.53		%				0.58		%				0.65		%				0.83		%				0.49		%				0.83		%
Total assets			0.29		%				0.31		%				0.33		%				0.37		%				0.49		%				0.29		%				0.49		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO			0.37		%				0.41		%				0.49		%				0.52		%				0.71		%				0.37		%				0.71		%
Total assets			0.22		%				0.24		%				0.28		%				0.30		%				0.42		%				0.22		%				0.42		%
Classified assets to total assets			0.69		%				0.74		%				0.67		%				0.64		%				1.04		%				0.69		%				1.04		%
(1) Nonaccrual loans include nonaccrual TDRs of $12.8 million, $9.5 million, $16.2 million, $16.0 million, and 20.3 million, as of September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.

10

---

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																																	Nine months ended,
			Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Sep. 30,						Sep. 30,						Sep. 30,
			2022						2022						2022						2021						2021						2022						2021
PER COMMON SHARE
Market Price
High			$	23.75					$	23.03					$	26.73					$	25.79					$	24.06					$	26.73					$	26.40
Low			$	19.02					$	19.09					$	22.92					$	22.89					$	21.48					$	19.02					$	17.62
Close			$	21.08					$	19.40					$	23.05					$	24.38					$	23.41					$	21.08					$	23.41
Average shares outstanding - basic			93,582,250						93,555,131						93,383,932						92,903,900						94,289,097						93,507,831						95,752,759
Average shares outstanding - diluted			94,793,766						94,449,817						94,263,925						93,761,909						95,143,930						94,504,453						96,617,600
Ending shares outstanding			94,833,964						94,448,792						94,451,496						94,149,240						93,742,797						94,833,964						93,742,797
Total shareholders' equity			$	1,994,132					$	2,068,670					$	2,137,445					$	2,258,942					$	2,236,170					$	1,994,132					$	2,236,170
REGULATORY CAPITAL			Preliminary																														Preliminary
Common equity tier 1 capital			$	1,348,413					$	1,307,259					$	1,272,115					$	1,262,789					$	1,316,059					$	1,348,413					$	1,316,059
Common equity tier 1 capital ratio			10.82		%				10.91		%				10.87		%				10.85		%				11.55		%				10.82		%				11.55		%
Tier 1 capital			$	1,392,565					$	1,351,287					$	1,316,020					$	1,306,571					$	1,359,297					$	1,392,565					$	1,359,297
Tier 1 ratio			11.17		%				11.28		%				11.24		%				11.22		%				11.92		%				11.17		%				11.92		%
Total capital			$	1,711,741					$	1,670,367					$	1,635,003					$	1,642,549					$	1,706,513					$	1,711,741					$	1,706,513
Total capital ratio			13.73		%				13.94		%				13.97		%				14.11		%				14.97		%				13.73		%				14.97		%
Total capital in excess of minimum requirement			$	402,662					$	412,167					$	405,931					$	420,118					$	509,579					$	402,662					$	509,579
Total risk-weighted assets			$	12,467,422					$	11,982,860					$	11,705,447					$	11,642,201					$	11,399,375					$	12,467,422					$	11,399,375
Leverage ratio			8.88		%				8.76		%				8.64		%				8.70		%				9.05		%				8.88		%				9.05		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets			12.00		%				12.74		%				13.35		%				13.83		%				14.01		%				12.00		%				14.01		%
Ending tangible shareholders' equity to ending tangible assets (1)			5.79		%				6.40		%				6.95		%				7.58		%				8.21		%				5.79		%				8.21		%
Average shareholders' equity to average assets			12.75		%				12.97		%				13.75		%				13.98		%				14.14		%				13.15		%				14.09		%
Average tangible shareholders' equity to average tangible assets (1)			6.49		%				6.62		%				7.44		%				8.20		%				8.35		%				6.85		%				8.32		%
REPURCHASE PROGRAM (2)
Shares repurchased			0						0						0						0						2,484,295						0						4,633,355
Average share repurchase price			N/A						N/A						N/A						N/A						$	23.04					N/A						$	23.33
Total cost of shares repurchased			N/A						N/A						N/A						N/A						$	57,231					N/A						$	108,077
(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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