EX-99.1 2 a8k1q22earningsreleaseex991.htm EX-99.1 Document

                                                Exhibit 99.1
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First Financial Bancorp Announces First Quarter 2022 Financial Results

•Earnings per diluted share of $0.44; $0.46 on an adjusted(1) basis
•Return on average assets of 1.03%; 1.09% on an adjusted(1) basis
•Net interest margin on FTE basis of 3.17%; 12 bp increase excluding loan fees and accretion
•Net charge-offs declined 69.3%; Provision recapture of $5.8 million

Cincinnati, Ohio - April 21, 2022. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three months ended March 31, 2022.

For the three months ended March 31, 2022, the Company reported net income of $41.3 million, or $0.44 per diluted common share. These results compare to net income of $46.9 million, or $0.50 per diluted common share, for the fourth quarter of 2021 and $47.3 million, or $0.48 per diluted common share, for the first quarter of 2021.

Return on average assets for the first quarter of 2022 was 1.03% while return on average tangible common equity was 14.93%(1). These compare to returns on average assets of 1.16% and 1.20%, and returns on average tangible common equity of 15.11%(1) and 15.24%(1), in the fourth quarter of 2021 and the first quarter of 2021, respectively.

First quarter 2022 highlights include:

•Loan balances flat when compared to linked quarter2, excluding impact of PPP
◦Loan balances decreased $46.7 million compared to the linked quarter; PPP loan balances decreased $34.4 million

•Net interest margin of 3.17% on a fully tax-equivalent basis(1), exceeded expectations
◦6 basis point decrease to 3.17% from 3.23% in the linked quarter driven by PPP forgiveness and lower loan fees, which offset increase in asset yields during the period
◦12 basis point increase excluding loan fees and accretion

•Noninterest income of $41.3 million, or $41.5 million as adjusted(1)
◦Leasing business income of $6.1 million
◦Wealth management fees remained strong at $6.1 million
◦Foreign exchange income of $10.2 million; decline from record fourth quarter
◦Mortgage banking revenue declined $2.6 million, or 40.4% from fourth quarter

•Noninterest expenses of $102.8 million, or $100.0 million as adjusted(1)
◦Adjustments(1) include:
▪$0.3 million of acquisition related costs
▪$2.5 million of other costs not expected to recur such as severance and branch consolidation costs
◦Increase in expenses driven by $8.6 million of Summit expenses, higher healthcare costs and elevated payroll taxes
◦Efficiency ratio of 69.6%; 67.7% as adjusted(1)


________________________________________________________________________________________
(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 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.


•Total Allowance for Credit Losses of $137.3 million; Total quarterly provision recapture of $5.8 million
◦Loans and leases - ACL of $124.1 million, 1.34% of total loans
◦Unfunded Commitments - ACL of $13.2 million
◦Provision recapture driven by strong credit quality
◦Net charge-offs declined 69.3% to 0.10% of average loans and leases

•Regulatory capital ratios remain in excess of internal targets:
◦Total capital ratio of 13.97%
◦Tier 1 common equity increased 3 basis points to 10.87%
◦Tangible common equity of 6.95%(1); decrease from linked quarter driven by decline in AOCI
◦Tangible book value per share of $10.97(1)


Archie Brown, President and Chief Executive Officer, commented, “We are pleased to announce another solid quarter of financial results which were in line with expectations. While we encountered some challenges related to mortgage banking and the wind down of PPP, the first quarter was a good start to what we expect will be a very strong year for First Financial.”

Mr. Brown continued, “First quarter results included adjusted(1) earnings per share of $0.46, return on assets of 1.09% and return on tangible common equity of 15.75%. These results were driven by provision recapture of $5.8 million, resulting from strong credit quality trends and stable economic conditions, and prudent expense management."

Mr. Brown added, “Improvement in net interest margin highlighted the quarter, with basic net interest margin increasing 12 basis points. The margin benefited from the Fed rate hike and higher asset yields, which we expect to increase further as the year progresses given our asset sensitive balance sheet. In addition, credit quality trends remain excellent, evidenced by stable classified asset levels, lower net charge-offs and provision recapture."

Mr. Brown further stated, "We were also pleased with our ability to diligently manage expenses, which were in line with our expectations despite elevated heathcare costs. First quarter fee income was lower than we anticipated as rising rates negatively impacted mortgage banking revenue. While foreign exchange declined from fourth quarter levels, Bannockburn's income can vary from quarter to quarter, and we expect them to rebound in the near term."

On loan growth, Mr. Brown remarked, "Loan growth was muted in the first quarter as originations were slowed by the peak of Omicron in January and higher payoffs continued as many borrowers sold their business or underlying assets. Loan pipelines are strengthening and we are optimistic about improving loan trends as we move further into the year."

Regarding the Summit acquisition, Mr. Brown commented, "The integration of Summit continues to go as expected. Its first quarter financial performance was in line with our initial expectations, and the cultural fit has proven to be as we had hoped. Given the impact of acquisition accounting, our expectation remains that Summit's contributions will be neutral to overall 2022 financial results, and we remain bullish on the the future success of the Company."

Mr. Brown concluded, “Our first quarter results have laid a strong foundation and we believe our asset sensitive balance sheet is well-positioned for the rising rates that are expected over the course of 2022. We have made strategic efforts to diversify our product offerings in recent years, and we believe those efforts position us to deliver the industry leading services to our clients and returns our shareholders have come to expect.”

Full detail of the Company’s first quarter 2022 performance is provided in the accompanying financial statements and slide presentation.


Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, April 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 773559. 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 565117. The recording will be available until April 29, 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;  

•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 March 31, 2022, the Company had $16.0 billion in assets, $9.2 billion in loans, $12.8 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 $3.3 billion in assets under management as of March 31, 2022. The Company operated 135 full service banking centers as of March 31, 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
March 31, 2022
(unaudited)

ContentsPage
Consolidated Financial Highlights2
Consolidated Quarterly Statements of Income3
Consolidated Statements of Condition4
Average Consolidated Statements of Condition5
Net Interest Margin Rate / Volume Analysis6-7
Credit Quality8
Capital Adequacy9



    
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20222021202120212021
RESULTS OF OPERATIONS
Net income$41,301 $46,945 $60,012 $50,888 $47,315 
Net earnings per share - basic$0.44 $0.51 $0.64 $0.53 $0.49 
Net earnings per share - diluted$0.44 $0.50 $0.63 $0.52 $0.48 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 
KEY FINANCIAL RATIOS
Return on average assets1.03 %1.16 %1.49 %1.26 %1.20 %
Return on average shareholders' equity7.53 %8.31 %10.53 %9.02 %8.44 %
Return on average tangible shareholders' equity (1)
14.93 %15.11 %19.03 %16.31 %15.24 %
Net interest margin3.12 %3.19 %3.28 %3.27 %3.35 %
Net interest margin (fully tax equivalent) (1)(2)
3.17 %3.23 %3.32 %3.31 %3.40 %
Ending shareholders' equity as a percent of ending assets13.35 %13.83 %14.01 %14.15 %13.97 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
6.95 %7.58 %8.21 %8.37 %8.22 %
Risk-weighted assets (1)
8.85 %9.91 %10.76 %11.12 %11.02 %
Average shareholders' equity as a percent of average assets13.75 %13.98 %14.14 %13.96 %14.17 %
Average tangible shareholders' equity as a percent of
    average tangible assets (1)
7.44 %8.20 %8.35 %8.23 %8.38 %
Book value per share$22.63 $23.99 $23.85 $23.59 $23.16 
Tangible book value per share (1)
$10.97 $12.26 $13.09 $13.08 $12.78 
Common equity tier 1 ratio (3)
10.87 %10.84 %11.54 %11.78 %11.81 %
Tier 1 ratio (3)
11.24 %11.22 %11.92 %12.16 %12.19 %
Total capital ratio (3)
13.97 %14.10 %14.97 %15.31 %15.41 %
Leverage ratio (3)
8.64 %8.70 %9.05 %9.14 %9.34 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$9,266,774 $9,283,227 $9,502,750 $9,831,965 $9,951,855 
Investment securities4,308,059 4,343,513 4,189,253 4,130,207 3,782,993 
Interest-bearing deposits with other banks234,687 166,904 32,400 45,593 46,912 
  Total earning assets$13,809,520 $13,793,644 $13,724,403 $14,007,765 $13,781,760 
Total assets$16,184,919 $16,036,417 $15,995,808 $16,215,469 $16,042,654 
Noninterest-bearing deposits$4,160,175 $4,191,457 $3,981,404 $4,003,626 $3,840,046 
Interest-bearing deposits8,623,800 8,693,792 8,685,949 8,707,553 8,531,822 
  Total deposits$12,783,975 $12,885,249 $12,667,353 $12,711,179 $12,371,868 
Borrowings$701,287 $396,743 $562,964 $749,114 $886,379 
Shareholders' equity$2,225,495 $2,241,820 $2,261,293 $2,263,687 $2,272,749 
CREDIT QUALITY RATIOS
Allowance to ending loans1.34 %1.42 %1.59 %1.68 %1.71 %
Allowance to nonaccrual loans273.09 %272.76 %225.73 %184.77 %199.33 %
Allowance to nonperforming loans231.98 %219.96 %192.35 %162.12 %175.44 %
Nonperforming loans to total loans0.58 %0.65 %0.83 %1.03 %0.97 %
Nonaccrual loans to total loans0.49 %0.52 %0.70 %0.91 %0.86 %
Nonperforming assets to ending loans, plus OREO0.58 %0.65 %0.83 %1.04 %0.98 %
Nonperforming assets to total assets0.33 %0.37 %0.49 %0.62 %0.60 %
Classified assets to total assets0.67 %0.64 %1.04 %1.14 %1.22 %
Net charge-offs to average loans (annualized)0.10 %0.32 %0.10 %0.23 %0.38 %

(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) March 31, 2022 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
2

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
20222021
FirstFourthThirdSecondFirstFull
QuarterQuarterQuarterQuarterQuarterYear
Interest income
  Loans and leases, including fees$87,182 $92,682 $96,428 $97,494 $98,931 $385,535 
  Investment securities
     Taxable22,096 20,993 20,088 19,524 18,607 79,212 
     Tax-exempt4,431 4,127 4,282 4,871 5,043 18,323 
        Total investment securities interest26,527 25,120 24,370 24,395 23,650 97,535 
  Other earning assets121 71 23 25 28 147 
       Total interest income113,830 117,873 120,821 121,914 122,609 483,217 
Interest expense
  Deposits2,623 3,089 3,320 3,693 4,333 14,435 
  Short-term borrowings317 10 68 53 67 198 
  Long-term borrowings4,544 3,968 4,023 4,142 4,333 16,466 
      Total interest expense7,484 7,067 7,411 7,888 8,733 31,099 
      Net interest income106,346 110,806 113,410 114,026 113,876 452,118 
  Provision for credit losses-loans and leases (5,589)(9,525)(8,193)(4,756)3,450 (19,024)
  Provision for credit losses-unfunded commitments (226)1,799 (1,951)517 538 903 
      Net interest income after provision for credit losses112,161 118,532 123,554 118,265 109,888 470,239 
Noninterest income
  Service charges on deposit accounts7,729 8,645 8,548 7,537 7,146 31,876 
  Trust and wealth management fees6,060 6,038 5,896 6,216 5,630 23,780 
  Bankcard income3,337 3,602 3,838 3,732 3,128 14,300 
  Client derivative fees799 2,303 2,273 1,795 1,556 7,927 
  Foreign exchange income10,151 12,808 9,191 12,037 10,757 44,793 
  Leasing business income6,076 0 0 0 0 0 
  Net gains from sales of loans3,872 6,492 8,586 8,489 9,454 33,021 
  Net gain (loss) on sale of investment securities3 (14)(314)(265)(166)(759)
  Net gain (loss) on equity securities(199)321 108 161 112 702 
  Other3,465 5,465 4,411 3,285 2,705 15,866 
      Total noninterest income41,293 45,660 42,537 42,987 40,322 171,506 
Noninterest expenses
  Salaries and employee benefits63,947 62,170 61,717 60,784 61,253 245,924 
  Net occupancy5,746 5,332 5,571 5,535 5,704 22,142 
  Furniture and equipment3,567 3,161 3,318 3,371 3,969 13,819 
  Data processing8,264 8,261 7,951 7,864 7,287 31,363 
  Marketing1,700 2,152 2,435 2,035 1,361 7,983 
  Communication666 677 669 746 838 2,930 
  Professional services2,159 5,998 2,199 2,029 1,450 11,676 
  State intangible tax1,131 651 1,202 1,201 1,202 4,256 
  FDIC assessments1,459 1,453 1,466 1,362 1,349 5,630 
  Intangible amortization 2,914 2,401 2,479 2,480 2,479 9,839 
  Leasing business expense3,869 0 0 0 0 0 
  Other7,383 17,349 10,051 12,236 5,614 45,250 
      Total noninterest expenses102,805 109,605 99,058 99,643 92,506 400,812 
Income before income taxes50,649 54,587 67,033 61,609 57,704 240,933 
Income tax expense (benefit)9,348 7,642 7,021 10,721 10,389 35,773 
      Net income$41,301 $46,945 $60,012 $50,888 $47,315 $205,160 
ADDITIONAL DATA
Net earnings per share - basic$0.44 $0.51 $0.64 $0.53 $0.49 $2.16 
Net earnings per share - diluted$0.44 $0.50 $0.63 $0.52 $0.48 $2.14 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 $0.92 
Return on average assets1.03 %1.16 %1.49 %1.26 %1.20 %1.28 %
Return on average shareholders' equity7.53 %8.31 %10.53 %9.02 %8.44 %9.08 %
Interest income$113,830 $117,873 $120,821 $121,914 $122,609 $483,217 
Tax equivalent adjustment1,467 1,386 1,434 1,619 1,652 6,091 
   Interest income - tax equivalent115,297 119,259 122,255 123,533 124,261 489,308 
Interest expense7,484 7,067 7,411 7,888 8,733 31,099 
   Net interest income - tax equivalent$107,813 $112,192 $114,844 $115,645 $115,528 $458,209 
Net interest margin3.12 %3.19 %3.28 %3.27 %3.35 %3.27 %
Net interest margin (fully tax equivalent) (1)
3.17 %3.23 %3.32 %3.31 %3.40 %3.31 %
Full-time equivalent employees
2,050 (2)
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.
(2) Includes 65 FTE from the Summit acquisition.
3

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,% Change% Change
20222021202120212021Linked Qtr.Comp Qtr.
ASSETS
     Cash and due from banks$230,428 $220,031 $209,748 $206,918 $210,191 4.7 %9.6 %
     Interest-bearing deposits with other banks227,147 214,811 29,799 38,610 19,180 5.7 %N/M
     Investment securities available-for-sale3,957,882 4,207,846 4,114,094 3,955,839 3,753,763 (5.9)%5.4 %
     Investment securities held-to-maturity92,597 98,420 103,886 112,456 121,945 (5.9)%(24.1)%
     Other investments114,563 102,971 97,831 129,432 131,814 11.3 %(13.1)%
     Loans held for sale12,670 29,482 33,835 31,546 34,590 (57.0)%(63.4)%
     Loans and leases
       Commercial and industrial2,800,209 2,720,028 2,602,848 2,701,203 3,044,825 2.9 %(8.0)%
       Lease financing125,867 109,624 67,855 68,229 66,574 14.8 %89.1 %
       Construction real estate479,744 455,894 477,004 630,329 642,709 5.2 %(25.4)%
       Commercial real estate4,031,484 4,226,614 4,438,374 4,332,561 4,396,582 (4.6)%(8.3)%
       Residential real estate913,838 896,069 922,492 932,112 946,522 2.0 %(3.5)%
       Home equity707,973 708,399 709,050 711,756 709,667 (0.1)%(0.2)%
       Installment132,197 119,454 96,077 89,143 82,421 10.7 %60.4 %
       Credit card50,305 52,217 47,231 46,177 44,669 (3.7)%12.6 %
          Total loans9,241,617 9,288,299 9,360,931 9,511,510 9,933,969 (0.5)%(7.0)%
       Less:
          Allowance for credit losses (124,130)(131,992)(148,903)(159,590)(169,923)(6.0)%(26.9)%
                Net loans 9,117,487 9,156,307 9,212,028 9,351,920 9,764,046 (0.4)%(6.6)%
     Premises and equipment190,975 193,040 192,580 192,238 204,537 (1.1)%(6.6)%
     Operating leases87,432 73,857 0 0 0 18.4 %100.0 %
     Goodwill 999,959 1,000,749 937,771 937,771 937,771 (0.1)%6.6 %
     Other intangibles85,891 88,898 56,811 59,391 61,984 (3.4)%38.6 %
     Accrued interest and other assets892,119 942,729 968,210 1,021,798 935,250 (5.4)%(4.6)%
       Total Assets$16,009,150 $16,329,141 $15,956,593 $16,037,919 $16,175,071 (2.0)%(1.0)%
LIABILITIES
     Deposits
       Interest-bearing demand$3,246,646 $3,198,745 $2,916,860 $2,963,151 $2,914,761 1.5 %11.4 %
       Savings4,188,867 4,157,374 4,223,905 4,093,229 4,006,181 0.8 %4.6 %
       Time1,121,966 1,330,263 1,517,419 1,548,109 1,731,757 (15.7)%(35.2)%
          Total interest-bearing deposits8,557,479 8,686,382 8,658,184 8,604,489 8,652,699 (1.5)%(1.1)%
       Noninterest-bearing4,261,429 4,185,572 4,019,197 3,901,691 3,995,370 1.8 %6.7 %
          Total deposits12,818,908 12,871,954 12,677,381 12,506,180 12,648,069 (0.4)%1.4 %
     Federal funds purchased and securities sold
         under agreements to repurchase0 51,203 81,850 255,791 181,387 (100.0)%(100.0)%
     FHLB short-term borrowings185,000 225,000 107,000 217,000 0 (17.8)%100.0 %
     Other0 20,000 0 0 0 (100.0)%N/M
          Total short-term borrowings185,000 296,203 188,850 472,791 181,387 (37.5)%2.0 %
     Long-term debt379,840 409,832 313,230 313,039 583,722 (7.3)%(34.9)%
          Total borrowed funds564,840 706,035 502,080 785,830 765,109 (20.0)%(26.2)%
     Accrued interest and other liabilities487,957 492,210 540,962 476,402 502,951 (0.9)%(3.0)%
       Total Liabilities13,871,705 14,070,199 13,720,423 13,768,412 13,916,129 (1.4)%(0.3)%
SHAREHOLDERS' EQUITY
     Common stock1,634,903 1,640,358 1,637,065 1,635,470 1,633,137 (0.3)%0.1 %
     Retained earnings857,178 837,473 812,082 773,857 745,220 2.4 %15.0 %
     Accumulated other comprehensive income (loss)(142,477)(433)14,230 30,735 18,101 N/MN/M
     Treasury stock, at cost(212,159)(218,456)(227,207)(170,555)(137,516)(2.9)%54.3 %
       Total Shareholders' Equity2,137,445 2,258,942 2,236,170 2,269,507 2,258,942 (5.4)%(5.4)%
       Total Liabilities and Shareholders' Equity$16,009,150 $16,329,141 $15,956,593 $16,037,919 $16,175,071 (2.0)%(1.0)%

4

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20222021202120212021
ASSETS
     Cash and due from banks$248,517 $253,091 $245,212 $237,964 $232,275 
     Interest-bearing deposits with other banks234,687 166,904 32,400 45,593 46,912 
     Investment securities4,308,059 4,343,513 4,189,253 4,130,207 3,782,993 
     Loans held for sale15,589 24,491 28,365 28,348 29,689 
     Loans and leases
       Commercial and industrial2,736,613 2,552,686 2,634,306 2,953,185 3,029,716 
       Lease financing115,703 67,537 67,159 66,124 70,508 
       Construction real estate474,278 460,588 567,091 630,351 647,655 
       Commercial real estate4,139,072 4,391,328 4,413,003 4,372,679 4,339,349 
       Residential real estate903,567 917,399 937,969 940,600 980,718 
       Home equity703,714 709,954 710,794 707,409 726,134 
       Installment125,579 106,188 93,937 84,768 81,377 
       Credit card52,659 53,056 50,126 48,501 46,709 
          Total loans9,251,185 9,258,736 9,474,385 9,803,617 9,922,166 
       Less:
          Allowance for credit losses (129,601)(144,756)(157,727)(169,979)(177,863)
                Net loans 9,121,584 9,113,980 9,316,658 9,633,638 9,744,303 
     Premises and equipment192,832 192,941 193,775 200,558 206,628 
     Operating leases81,907 801 0 0 0 
     Goodwill 1,000,238 938,453 937,771 937,771 937,771 
     Other intangibles87,602 56,120 58,314 60,929 63,529 
     Accrued interest and other assets893,904 946,123 994,060 940,461 998,554 
       Total Assets$16,184,919 $16,036,417 $15,995,808 $16,215,469 $16,042,654 
LIABILITIES
     Deposits
       Interest-bearing demand$3,246,919 $3,069,416 $2,960,388 $2,973,930 $2,948,682 
       Savings4,145,615 4,195,504 4,150,610 4,096,077 3,815,314 
       Time1,231,266 1,428,872 1,574,951 1,637,546 1,767,826 
          Total interest-bearing deposits8,623,800 8,693,792 8,685,949 8,707,553 8,531,822 
       Noninterest-bearing4,160,175 4,191,457 3,981,404 4,003,626 3,840,046 
          Total deposits12,783,975 12,885,249 12,667,353 12,711,179 12,371,868 
     Federal funds purchased and securities sold
          under agreements to repurchase45,358 79,382 186,401 194,478 184,483 
     FHLB short-term borrowings257,800 2,445 63,463 40,846 67,222 
     Other 12,889 654 0 0 0 
          Total short-term borrowings316,047 82,481 249,864 235,324 251,705 
     Long-term debt385,240 314,262 313,100 513,790 634,674 
       Total borrowed funds701,287 396,743 562,964 749,114 886,379 
     Accrued interest and other liabilities474,162 512,605 504,198 491,489 511,658 
       Total Liabilities13,959,424 13,794,597 13,734,515 13,951,782 13,769,905 
SHAREHOLDERS' EQUITY
     Common stock1,638,321 1,637,828 1,635,833 1,633,950 1,636,884 
     Retained earnings841,652 822,500 783,760 754,456 726,351 
     Accumulated other comprehensive loss(38,448)8,542 36,917 25,832 42,253 
     Treasury stock, at cost(216,030)(227,050)(195,217)(150,551)(132,739)
       Total Shareholders' Equity2,225,495 2,241,820 2,261,293 2,263,687 2,272,749 
       Total Liabilities and Shareholders' Equity$16,184,919 $16,036,417 $15,995,808 $16,215,469 $16,042,654 

5

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 Quarterly Averages
March 31, 2022December 31, 2021March 31, 2021
BalanceInterestYieldBalanceInterestYieldBalanceInterestYield
Earning assets
    Investments:
      Investment securities$4,308,059 $26,527 2.50 %$4,343,513 $25,120 2.29 %$3,782,993 $23,650 2.54 %
      Interest-bearing deposits with other banks234,687 121 0.21 %166,904 71 0.17 %46,912 28 0.24 %
    Gross loans (1)
9,266,774 87,182 3.82 %9,283,227 92,682 3.96 %9,951,855 98,931 4.03 %
       Total earning assets13,809,520 113,830 3.34 %13,793,644 117,873 3.39 %13,781,760 122,609 3.61 %
Nonearning assets
    Allowance for credit losses(129,601)(144,756)(177,863)
    Cash and due from banks248,517 253,091 232,275 
    Accrued interest and other assets2,256,483 2,134,438 2,206,482 
       Total assets$16,184,919 $16,036,417 $16,042,654 
Interest-bearing liabilities
    Deposits:
      Interest-bearing demand$3,246,919 $492 0.06 %$3,069,416 $461 0.06 %$2,948,682 $534 0.07 %
      Savings4,145,615 850 0.08 %4,195,504 901 0.09 %3,815,314 1,178 0.13 %
      Time1,231,266 1,281 0.42 %1,428,872 1,727 0.48 %1,767,826 2,621 0.60 %
    Total interest-bearing deposits8,623,800 2,623 0.12 %8,693,792 3,089 0.14 %8,531,822 4,333 0.21 %
    Borrowed funds
      Short-term borrowings316,047 317 0.41 %82,481 10 0.05 %251,705 67 0.11 %
      Long-term debt385,240 4,544 4.78 %314,262 3,968 5.01 %634,674 4,333 2.77 %
        Total borrowed funds701,287 4,861 2.81 %396,743 3,978 3.98 %886,379 4,400 2.01 %
       Total interest-bearing liabilities9,325,087 7,484 0.33 %9,090,535 7,067 0.31 %9,418,201 8,733 0.38 %
Noninterest-bearing liabilities
    Noninterest-bearing demand deposits4,160,175 4,191,457 3,840,046 
    Other liabilities474,162 512,605 511,658 
    Shareholders' equity2,225,495 2,241,820 2,272,749 
       Total liabilities & shareholders' equity$16,184,919 $16,036,417 $16,042,654 
Net interest income $106,346 $110,806 $113,876 
Net interest spread 3.01 %3.08 %3.23 %
Net interest margin 3.12 %3.19 %3.35 %
Tax equivalent adjustment0.05 %0.04 %0.05 %
Net interest margin (fully tax equivalent)3.17 %3.23 %3.40 %
(1) Loans held for sale and nonaccrual loans are included in gross loans.
6

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
 Linked Qtr. Income Variance Comparable Qtr. Income Variance
RateVolumeTotalRateVolumeTotal
Earning assets
    Investment securities$2,220 $(813)$1,407 $(356)$3,233 $2,877 
    Interest-bearing deposits with other banks17 33 50 (4)97 93 
    Gross loans (2)
(3,404)(2,096)(5,500)(5,304)(6,445)(11,749)
       Total earning assets(1,167)(2,876)(4,043)(5,664)(3,115)(8,779)
Interest-bearing liabilities
    Total interest-bearing deposits$(386)$(80)$(466)$(1,738)$28 $(1,710)
    Borrowed funds
    Short-term borrowings75 232 307 185 65 250 
    Long-term debt(179)755 576 3,153 (2,942)211 
       Total borrowed funds(104)987 883 3,338 (2,877)461 
       Total interest-bearing liabilities(490)907 417 1,600 (2,849)(1,249)
          Net interest income (1)
$(677)$(3,783)$(4,460)$(7,264)$(266)$(7,530)
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.


7

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20222021202120212021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period$131,992 $148,903 $159,590 $169,923 $175,679 
 Purchase accounting ACL for PCD0 17 0 0 0 
  Provision for credit losses(5,589)(9,525)(8,193)(4,756)3,450 
  Gross charge-offs
    Commercial and industrial2,845 1,364 2,617 3,729 7,910 
    Lease financing131 0 0 0 0 
    Construction real estate0 1,496 0 0 2 
    Commercial real estate0 9,150 1,030 2,041 1,250 
    Residential real estate22 6 74 46 1 
    Home equity21 22 200 240 611 
    Installment177 184 37 77 36 
    Credit card246 149 230 179 222 
      Total gross charge-offs 3,442 12,371 4,188 6,312 10,032 
  Recoveries
    Commercial and industrial379 201 869 205 337 
    Lease financing33 0 0 0 0 
    Construction real estate0 0 0 3 0 
    Commercial real estate222 4,292 223 75 195 
    Residential real estate90 74 56 54 44 
    Home equity265 303 426 317 177 
    Installment21 27 53 37 34 
    Credit card159 71 67 44 39 
      Total recoveries1,169 4,968 1,694 735 826 
  Total net charge-offs2,273 7,403 2,494 5,577 9,206 
Ending allowance for credit losses$124,130 $131,992 $148,903 $159,590 $169,923 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
  Commercial and industrial0.37 %0.18 %0.26 %0.48 %1.01 %
  Lease financing0.34 %0.00 %0.00 %0.00 %0.00 %
  Construction real estate0.00 %1.29 %0.00 %0.00 %0.00 %
  Commercial real estate(0.02)%0.44 %0.07 %0.18 %0.10 %
  Residential real estate(0.03)%(0.03)%0.01 %0.00 %(0.02)%
  Home equity(0.14)%(0.16)%(0.13)%(0.04)%0.24 %
  Installment0.50 %0.59 %(0.07)%0.19 %0.01 %
  Credit card0.67 %0.58 %1.29 %1.12 %1.59 %
     Total net charge-offs0.10 %0.32 %0.10 %0.23 %0.38 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
  Nonaccrual loans (1)
    Commercial and industrial$14,390 $17,362 $15,160 $27,426 $24,941 
    Lease financing249 203 0 16 0 
    Construction real estate0 0 0 0 0 
    Commercial real estate19,843 19,512 38,564 45,957 44,514 
    Residential real estate7,432 8,305 9,416 9,480 11,359 
    Home equity3,377 2,922 2,735 3,376 4,286 
    Installment163 88 91 115 146 
      Nonaccrual loans45,454 48,392 65,966 86,370 85,246 
  Accruing troubled debt restructurings (TDRs)8,055 11,616 11,448 12,070 11,608 
     Total nonperforming loans53,509 60,008 77,414 98,440 96,854 
  Other real estate owned (OREO)72 98 340 340 854 
     Total nonperforming assets53,581 60,106 77,754 98,780 97,708 
  Accruing loans past due 90 days or more87 137 104 155 92 
     Total underperforming assets$53,668 $60,243 $77,858 $98,935 $97,800 
Total classified assets$106,839 $104,815 $165,462 $182,516 $196,782 
CREDIT QUALITY RATIOS
Allowance for credit losses to
     Nonaccrual loans273.09 %272.76 %225.73 %184.77 %199.33 %
     Nonperforming loans231.98 %219.96 %192.35 %162.12 %175.44 %
     Total ending loans1.34 %1.42 %1.59 %1.68 %1.71 %
Nonperforming loans to total loans0.58 %0.65 %0.83 %1.03 %0.97 %
Nonaccrual loans to total loans0.49 %0.52 %0.70 %0.91 %0.86 %
Nonperforming assets to
     Ending loans, plus OREO0.58 %0.65 %0.83 %1.04 %0.98 %
     Total assets0.33 %0.37 %0.49 %0.62 %0.60 %
Nonperforming assets, excluding accruing TDRs to
     Ending loans, plus OREO0.49 %0.52 %0.71 %0.91 %0.87 %
     Total assets0.28 %0.30 %0.42 %0.54 %0.53 %
Classified assets to total assets0.67 %0.64 %1.04 %1.14 %1.22 %
(1) Nonaccrual loans include nonaccrual TDRs of $16.2 million, $16.0 million, $20.3 million, $21.5 million, and $20.9 million, as of March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.
8

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20222021202120212021
PER COMMON SHARE
Market Price
  High$26.73 $25.79 $24.06 $26.02 $26.40 
  Low$22.92 $22.89 $21.48 $23.35 $17.62 
  Close$23.05 $24.38 $23.41 $23.63 $24.00 
Average shares outstanding - basic93,383,932 92,903,900 94,289,097 96,123,645 96,873,940 
Average shares outstanding - diluted94,263,925 93,761,909 95,143,930 97,009,712 97,727,527 
Ending shares outstanding94,451,496 94,149,240 93,742,797 96,199,509 97,517,693 
Total shareholders' equity$2,137,445 $2,258,942 $2,236,170 $2,269,507 $2,258,942 
REGULATORY CAPITALPreliminary
Common equity tier 1 capital$1,272,115 $1,262,789 $1,316,059 $1,333,209 $1,334,882 
Common equity tier 1 capital ratio10.87 %10.84 %11.54 %11.78 %11.81 %
Tier 1 capital$1,316,020 $1,306,571 $1,359,297 $1,376,333 $1,377,892 
Tier 1 ratio11.24 %11.22 %11.92 %12.16 %12.19 %
Total capital$1,635,003 $1,642,549 $1,706,513 $1,732,930 $1,741,755 
Total capital ratio13.97 %14.10 %14.97 %15.31 %15.41 %
Total capital in excess of minimum requirement$406,011 $419,754 $509,536 $544,478 $554,834 
Total risk-weighted assets$11,704,681 $11,645,666 $11,399,782 $11,318,590 $11,304,012 
Leverage ratio8.64 %8.70 %9.05 %9.14 %9.34 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets13.35 %13.83 %14.01 %14.15 %13.97 %
Ending tangible shareholders' equity to ending tangible assets (1)
6.95 %7.58 %8.21 %8.37 %8.22 %
Average shareholders' equity to average assets13.75 %13.98 %14.14 %13.96 %14.17 %
Average tangible shareholders' equity to average tangible assets (1)
7.44 %8.20 %8.35 %8.23 %8.38 %
REPURCHASE PROGRAM (2)
Shares repurchased0 0 2,484,295 1,308,945 840,115 
Average share repurchase priceN/AN/A$23.04 $25.11 $21.40 
Total cost of shares repurchasedN/AN/A$57,231 $32,864 $17,982 
(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
9