EX-99.1 2 a8k4q22earningsreleaseex991.htm EX-99.1

                                                Exhibit 99.1

First Financial Bancorp Announces Fourth Quarter and Full Year 2022 Financial Results and Quarterly Dividend

•Earnings per diluted share of $0.73

•Return on average assets of 1.63%

•Net interest margin on FTE basis(1) of 4.47%; 49 bp increase from linked quarter

•Loan growth of $501.5 million; 20.3% on an annualized basis

•Record quarterly revenue driven by increase in net interest income and record fee income

•Strong credit quality with net recoveries and declining nonperforming assets

Cincinnati, Ohio - January 26, 2023. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and twelve months ended December 31, 2022.

For the three months ended December 31, 2022, the Company reported net income of $69.1 million, or $0.73 per diluted common share. These results compare to net income of $55.7 million, or $0.59 per diluted common share, for the third quarter of 2022. For the twelve months ended December 31, 2022, First Financial had earnings per diluted share of $2.30 compared to $2.14 for the same period in 2021.

Return on average assets for the fourth quarter of 2022 was 1.63% while return on average tangible common equity was 29.93%(1). These compare to return on average assets of 1.35% and return on average tangible common equity of 22.29%(1) in the third quarter of 2022.

Fourth quarter 2022 highlights include:

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

◦Loan balances increased $501.5 million compared to the third quarter

◦Growth of 20.3% on an annualized basis

◦Broad based portfolio growth; Summit contributed $129.7 million of the quarterly growth

•Net interest margin of 4.43%, or 4.47% on a fully tax-equivalent basis(1), exceeded expectations

◦49 bp increase to 4.47% from 3.98% in the third quarter due to higher asset yields resulting from higher interest rates

◦96 bp increase in loan yields offset 31 bp increase in cost of deposits

◦Stable core deposit balances; $58.0 million decline in total deposit balances, excluding $319.3 million increase in brokered CD's

•Record noninterest income of $56.0 million, or $55.1 million as adjusted(1)

◦Record foreign exchange income of $19.6 million; 66.7% increase from third quarter

◦Record leasing business income of $11.1 million; 56.1% increase from third quarter

◦Adjusted(1) for $0.9 million gain 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 December 31, 2022, 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. These fair value measurements are considered final as of December 31, 2022.

---

•Noninterest expenses of $124.4 million, or $117.3 million as adjusted(1)

◦Adjustments(1) include $6.4 million tax credit investment writedown and $0.7 million of other costs not expected to recur such as acquisition, severance and branch consolidation costs

◦Increase driven by elevated incentive costs tied to record foreign exchange income during the period

◦$2.5 million contribution to First Financial Foundation

◦Efficiency ratio of 58.2%; 55.1% as adjusted(1)

•Total Allowance for Credit Losses of $151.4 million; Total quarterly provision expense of $10.0 million

◦Loans and leases - ACL of $133.0 million; increased 2 bps to 1.29% of total loans

◦Unfunded Commitments - ACL of $18.4 million

◦Provision expense driven by loan growth and slower prepayment speeds

◦Net recoveries of 1 bp of average loans and leases

◦Nonperforming assets declined 16% compared to the linked quarter to 23 bps of total assets

•Regulatory capital ratios remain in excess of internal targets

◦Total capital ratio of 13.64%

◦Tier 1 common equity increased 1 bps to 10.83%

◦Tangible common equity increased 16 bps to 5.95%(1); 8.20%(1) excluding impact from AOCI

◦Tangible book value per share of $9.97(1)

Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on March 15, 2023 to shareholders of record as of March 1, 2023.

Archie Brown, President and CEO, commented on the quarter, “I am extremely pleased with our fourth quarter performance, which was exceptional on many levels. Earnings per diluted share were $0.73, return on assets was 1.63% and our adjusted(1) efficiency ratio improved to 55%. Diluted earnings per common share increased 24% from the third quarter, and we achieved record operating revenue of $214 million driven by a 15% increase in net interest income and a 32% increase in fee income. Rate increases continued to positively impact our asset sensitive balance sheet, with our net interest margin expanding by 49 basis points to 4.47% as increasing asset yields outpaced deposit costs. The growth in noninterest income was due to record quarters from Bannockburn and Summit, which more than offset softness in mortgage, client derivative fees and service charge income."

Mr. Brown continued, “We were also very pleased with $502 million of broad-based loan growth in the quarter, which is 20.3% on an annualized basis and included a $130 million increase in finance leases at Summit. We expect loan growth to moderate in the first quarter of 2023 due to seasonal and economic uncertainty. We experienced modest outflows in personal interest-bearing transaction accounts, however this was offset by seasonal inflows in our public fund and business deposits. The result was a stable core deposit base and a loan to deposit ratio of 81%."

Mr. Brown continued, “Loan quality remained strong across our portfolio, with nonperforming assets declining by 16% to 23 basis points of total assets and 1 basis point of net recoveries for the period. Our ACL to total loan coverage increased slightly during the fourth quarter due to slowing prepayments and the general outlook for the U.S. economy.”

Mr. Brown discussed full year results, “2022 was a great year for First Financial. Adjusted(1) earnings per share of $2.36 was a record, and increased 3% compared to 2021, resulting in a 1.36% adjusted(1) return on assets and an adjusted(1) efficiency ratio of 60%. Revenue increased 14% compared to the prior year to $709 million, which was a record for our Company. Net interest income grew by 15% with short-term rate increases providing a catalyst, while record fee income increased by 11% for the year as our acquisition of Summit Funding drove new fees and Bannockburn revenue grew by 23% to a record $55 million. Our recent acquisitions have diversified our income sources as we intended, and we are very pleased that they effectively insulated the Company from much of the fee pressure that impacted the broader industry in 2022.”

Mr. Brown continued, “Loan growth exceeded $1 billion for the year, representing an 11% increase from 2021. We were pleased that the growth was broad-based, and included strong contributions from Summit Funding, which we acquired at the end of 2021. Summit's originations exceeded $400 million for the year, which was an all time high for them and surpassed our expectations, contributing over 20% of the Company's overall loan growth.”

Mr. Brown commented on asset quality, “Asset Quality was very strong for the year. Net Charge-offs were 6 basis points of total loans, which was a 20 basis point decline compared to 26 basis points in 2021. In addition, nonperforming assets declined $20 million, or 34%, to 23 basis points of total assets.”

Mr. Brown concluded, “The outstanding performance we achieved this year is the direct result of our associates executing at a very high level. I want to thank them for their commitment to our clients, our communities and each other. While we are proud of our 2022 financial results, we believe we have further opportunity to improve our execution and are committed to doing so. As we look forward to 2023, we remain focused on delivering consistent, sustained, industry leading results.”

---

Full detail of the Company’s fourth quarter and full year 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, January 27, 2023 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 329103. 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 347122. The recording will be available until February 10, 2023. 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 December 31, 2022, the Company had $17.0 billion in assets, $10.3 billion in loans, $12.7 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 $3.2 billion in assets under management as of December 31, 2022. The Company operated 132 full service banking centers as of December 31, 2022, located 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    

---

Selected Financial Information

December 31, 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

---

    

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
			Three Months Ended,																														Twelve months ended,
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Dec. 31,
			2022						2022						2022						2022						2021						2022						2021
RESULTS OF OPERATIONS
Net income			$	69,086					$	55,705					$	51,520					$	41,301					$	46,945					$	217,612					$	205,160
Net earnings per share - basic			$	0.74					$	0.60					$	0.55					$	0.44					$	0.51					$	2.33					$	2.16
Net earnings per share - diluted			$	0.73					$	0.59					$	0.55					$	0.44					$	0.50					$	2.30					$	2.14
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.23					$	0.92					$	0.92
KEY FINANCIAL RATIOS
Return on average assets			1.63		%				1.35		%				1.28		%				1.03		%				1.16		%				1.33		%				1.28		%
Return on average shareholders' equity			13.64		%				10.58		%				9.84		%				7.53		%				8.31		%				10.34		%				9.08		%
Return on average tangible shareholders' equity (1)			29.93		%				22.29		%				20.68		%				14.93		%				15.11		%				21.62		%				16.43		%
Net interest margin			4.43		%				3.93		%				3.41		%				3.11		%				3.19		%				3.73		%				3.27		%
Net interest margin (fully tax equivalent) (1)(2)			4.47		%				3.98		%				3.45		%				3.16		%				3.23		%				3.77		%				3.31		%
Ending shareholders' equity as a percent of ending assets			12.01		%				12.00		%				12.74		%				13.35		%				13.83		%				12.01		%				13.83		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)			5.95		%				5.79		%				6.40		%				6.95		%				7.58		%				5.95		%				7.58		%
Risk-weighted assets (1)			7.32		%				7.21		%				8.09		%				8.85		%				9.91		%				7.32		%				9.91		%
Average shareholders' equity as a percent of average assets			11.98		%				12.75		%				12.97		%				13.75		%				13.98		%				12.85		%				14.06		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)			5.84		%				6.49		%				6.62		%				7.44		%				8.20		%				6.59		%				8.29		%
Book value per share			$	21.51					$	21.03					$	21.90					$	22.63					$	23.99					$	21.51					$	23.99
Tangible book value per share (1)			$	9.97					$	9.48					$	10.27					$	10.97					$	12.26					$	9.97					$	12.26
Common equity tier 1 ratio (3)			10.83		%				10.82		%				10.91		%				10.87		%				10.85		%				10.83		%				10.85		%
Tier 1 ratio (3)			11.17		%				11.17		%				11.28		%				11.24		%				11.22		%				11.17		%				11.22		%
Total capital ratio (3)			13.64		%				13.73		%				13.94		%				13.97		%				14.11		%				13.64		%				14.11		%
Leverage ratio (3)			8.89		%				8.88		%				8.76		%				8.64		%				8.70		%				8.89		%				8.70		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)			$	10,059,119					$	9,597,197					$	9,367,820					$	9,266,774					$	9,283,227					$	9,574,965					$	9,640,235
Investment securities			3,705,304						4,003,472						4,118,287						4,308,059						4,343,513						4,032,046						4,113,240
Interest-bearing deposits with other banks			372,054						317,146						294,136						273,763						166,904						314,552						73,170
Total earning assets			$	14,136,477					$	13,917,815					$	13,780,243					$	13,848,596					$	13,793,644					$	13,921,563					$	13,826,645
Total assets			$	16,767,598					$	16,385,989					$	16,185,978					$	16,184,919					$	16,036,417					$	16,382,730					$	16,072,360
Noninterest-bearing deposits			$	4,225,192					$	4,176,242					$	4,224,842					$	4,160,175					$	4,191,457					$	4,196,735					$	4,005,034
Interest-bearing deposits			8,407,114						8,194,781						8,312,876						8,623,800						8,693,792						8,383,529						8,655,308
Total deposits			$	12,632,306					$	12,371,023					$	12,537,718					$	12,783,975					$	12,885,249					$	12,580,264					$	12,660,342
Borrowings			$	1,489,088					$	1,406,718					$	1,079,596					$	721,695					$	396,743					$	1,177,013					$	647,223
Shareholders' equity			$	2,009,564					$	2,089,179					$	2,099,670					$	2,225,495					$	2,241,820					$	2,105,339					$	2,259,807
CREDIT QUALITY RATIOS
Allowance to ending loans			1.29		%				1.27		%				1.25		%				1.34		%				1.42		%				1.29		%				1.42		%
Allowance to nonaccrual loans			464.58		%				341.61		%				302.87		%				273.09		%				272.76		%				464.58		%				272.76		%
Allowance to nonperforming loans			335.94		%				262.09		%				235.08		%				231.98		%				219.96		%				335.94		%				219.96		%
Nonperforming loans to total loans			0.38		%				0.48		%				0.53		%				0.58		%				0.65		%				0.38		%				0.65		%
Nonaccrual loans to total loans			0.28		%				0.37		%				0.41		%				0.49		%				0.52		%				0.28		%				0.52		%
Nonperforming assets to ending loans, plus OREO			0.39		%				0.48		%				0.53		%				0.58		%				0.65		%				0.39		%				0.65		%
Nonperforming assets to total assets			0.23		%				0.28		%				0.31		%				0.33		%				0.37		%				0.23		%				0.37		%
Classified assets to total assets			0.75		%				0.69		%				0.74		%				0.67		%				0.64		%				0.75		%				0.64		%
Net charge-offs to average loans (annualized)			(0.01)		%				0.07		%				0.08		%				0.10		%				0.32		%				0.06		%				0.26		%

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

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

(3) December 31, 2022 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.

2

---

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
			Three months ended,																		Twelve months ended,
			Dec. 31,																		Dec. 31,
			2022						2021						% Change						2022						2021						% Change
Interest income
Loans and leases, including fees			$	152,299					$	92,682					64.3		%				$	458,742					$	385,535					19.0		%
Investment securities
Taxable			30,248						20,993						44.1		%				102,314						79,212						29.2		%
Tax-exempt			4,105						4,127						(0.5)		%				18,466						18,323						0.8		%
Total investment securities interest			34,353						25,120						36.8		%				120,780						97,535						23.8		%
Other earning assets			3,262						71						N/M						5,484						147						N/M
Total interest income			189,914						117,873						61.1		%				585,006						483,217						21.1		%
Interest expense
Deposits			16,168						3,089						423.4		%				28,140						14,435						94.9		%
Short-term borrowings			11,091						10						N/M						19,132						198						N/M
Long-term borrowings			4,759						3,968						19.9		%				18,591						16,466						12.9		%
Total interest expense			32,018						7,067						353.1		%				65,863						31,099						111.8		%
Net interest income			157,896						110,806						42.5		%				519,143						452,118						14.8		%
Provision for credit losses-loans and leases			8,689						(9,525)						(191.2)		%				6,731						(19,024)						(135.4)		%
Provision for credit losses-unfunded commitments			1,341						1,799						(25.5)		%				4,982						903						451.7		%
Net interest income after provision for credit losses			147,866						118,532						24.7		%				507,430						470,239						7.9		%
Noninterest income
Service charges on deposit accounts			6,406						8,645						(25.9)		%				28,062						31,876						(12.0)		%
Trust and wealth management fees			5,648						6,038						(6.5)		%				23,506						23,780						(1.2)		%
Bankcard income			3,736						3,602						3.7		%				14,380						14,300						0.6		%
Client derivative fees			1,822						2,303						(20.9)		%				5,441						7,927						(31.4)		%
Foreign exchange income			19,592						12,808						53.0		%				54,965						44,793						22.7		%
Leasing business income			11,124						0						100.0		%				31,574						0						100.0		%
Net gains from sales of loans			2,206						6,492						(66.0)		%				15,048						33,021						(54.4)		%
Net gain (loss) on sale of investment securities			(393)						(14)						N/M						(569)						(759)						(25.0)		%
Net gain (loss) on equity securities			1,315						321						309.7		%				(639)						702						(191.0)		%
Other			4,579						5,465						(16.2)		%				17,873						15,866						12.6		%
Total noninterest income			56,035						45,660						22.7		%				189,641						171,506						10.6		%
Noninterest expenses
Salaries and employee benefits			73,621						62,170						18.4		%				269,368						245,924						9.5		%
Net occupancy			5,434						5,332						1.9		%				22,208						22,142						0.3		%
Furniture and equipment			3,234						3,161						2.3		%				13,224						13,819						(4.3)		%
Data processing			8,567						8,261						3.7		%				33,662						31,363						7.3		%
Marketing			2,198						2,152						2.1		%				8,744						7,983						9.5		%
Communication			690						677						1.9		%				2,683						2,930						(8.4)		%
Professional services			3,015						5,998						(49.7)		%				9,734						11,676						(16.6)		%
State intangible tax			974						651						49.6		%				4,285						4,256						0.7		%
FDIC assessments			2,173						1,453						49.6		%				7,194						5,630						27.8		%
Intangible amortization			2,573						2,401						7.2		%				11,185						9,839						13.7		%
Leasing business expense			6,061						0						100.0		%				20,363						0						100.0		%
Other			15,902						17,349						(8.3)		%				52,699						45,250						16.5		%
Total noninterest expenses			124,442						109,605						13.5		%				455,349						400,812						13.6		%
Income before income taxes			79,459						54,587						45.6		%				241,722						240,933						0.3		%
Income tax expense (benefit)			10,373						7,642						35.7		%				24,110						35,773						(32.6)		%
Net income			$	69,086					$	46,945					47.2		%				$	217,612					$	205,160					6.1		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.74					$	0.51											$	2.33					$	2.16
Net earnings per share - diluted			$	0.73					$	0.50											$	2.30					$	2.14
Dividends declared per share			$	0.23					$	0.23											$	0.92					$	0.92
Return on average assets			1.63		%				1.16		%										1.33		%				1.28		%
Return on average shareholders' equity			13.64		%				8.31		%										10.34		%				9.08		%
Interest income			$	189,914					$	117,873					61.1		%				$	585,006					$	483,217					21.1		%
Tax equivalent adjustment			1,553						1,386						12.0		%				6,357						6,091						4.4		%
Interest income - tax equivalent			191,467						119,259						60.5		%				591,363						489,308						20.9		%
Interest expense			32,018						7,067						353.1		%				65,863						31,099						111.8		%
Net interest income - tax equivalent			$	159,449					$	112,192					42.1		%				$	525,500					$	458,209					14.7		%
Net interest margin			4.43		%				3.19		%										3.73		%				3.27		%
Net interest margin (fully tax equivalent) (1)			4.47		%				3.23		%										3.77		%				3.31		%
Full-time equivalent employees			2,070						1,994
(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
			Fourth						Third						Second						First						Year to						% Change
			Quarter						Quarter						Quarter						Quarter						Date						Linked Qtr.
Interest income
Loans and leases, including fees			$	152,299					$	122,170					$	97,091					$	87,182					$	458,742					24.7		%
Investment securities
Taxable			30,248						26,331						23,639						22,096						102,314						14.9		%
Tax-exempt			4,105						5,014						4,916						4,431						18,466						(18.1)		%
Total investment securities interest			34,353						31,345						28,555						26,527						120,780						9.6		%
Other earning assets			3,262						1,597						505						120						5,484						104.3		%
Total interest income			189,914						155,112						126,151						113,829						585,006						22.4		%
Interest expense
Deposits			16,168						6,386						2,963						2,623						28,140						153.2		%
Short-term borrowings			11,091						6,158						1,566						317						19,132						80.1		%
Long-term borrowings			4,759						4,676						4,612						4,544						18,591						1.8		%
Total interest expense			32,018						17,220						9,141						7,484						65,863						85.9		%
Net interest income			157,896						137,892						117,010						106,345						519,143						14.5		%
Provision for credit losses-loans and leases			8,689						7,898						(4,267)						(5,589)						6,731						10.0		%
Provision for credit losses-unfunded commitments			1,341						386						3,481						(226)						4,982						247.4		%
Net interest income after provision for credit losses			147,866						129,608						117,796						112,160						507,430						14.1		%
Noninterest income
Service charges on deposit accounts			6,406						6,279						7,648						7,729						28,062						2.0		%
Trust and wealth management fees			5,648						5,487						6,311						6,060						23,506						2.9		%
Bankcard income			3,736						3,484						3,823						3,337						14,380						7.2		%
Client derivative fees			1,822						1,447						1,369						803						5,441						25.9		%
Foreign exchange income			19,592						11,752						13,470						10,151						54,965						66.7		%
Leasing business income			11,124						7,127						7,247						6,076						31,574						56.1		%
Net gains from sales of loans			2,206						3,729						5,241						3,872						15,048						(40.8)		%
Net gain (loss) on sale of investment securities			(393)						(179)						0						3						(569)						119.6		%
Net gain (loss) on equity securities			1,315						(701)						(1,054)						(199)						(639)						287.6		%
Other			4,579						4,109						5,723						3,462						17,873						11.4		%
Total noninterest income			56,035						42,534						49,778						41,294						189,641						31.7		%
Noninterest expenses
Salaries and employee benefits			73,621						66,808						64,992						63,947						269,368						10.2		%
Net occupancy			5,434						5,669						5,359						5,746						22,208						(4.1)		%
Furniture and equipment			3,234						3,222						3,201						3,567						13,224						0.4		%
Data processing			8,567						8,497						8,334						8,264						33,662						0.8		%
Marketing			2,198						2,523						2,323						1,700						8,744						(12.9)		%
Communication			690						657						670						666						2,683						5.0		%
Professional services			3,015						2,346						2,214						2,159						9,734						28.5		%
State intangible tax			974						1,090						1,090						1,131						4,285						(10.6)		%
FDIC assessments			2,173						1,885						1,677						1,459						7,194						15.3		%
Intangible amortization			2,573						2,783						2,915						2,914						11,185						(7.5)		%
Leasing business expense			6,061						5,746						4,687						3,869						20,363						5.5		%
Other			15,902						23,842						5,572						7,383						52,699						(33.3)		%
Total noninterest expenses			124,442						125,068						103,034						102,805						455,349						(0.5)		%
Income before income taxes			79,459						47,074						64,540						50,649						241,722						68.8		%
Income tax expense (benefit)			10,373						(8,631)						13,020						9,348						24,110						(220.2)		%
Net income			$	69,086					$	55,705					$	51,520					$	41,301					$	217,612					24.0		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.74					$	0.60					$	0.55					$	0.44					$	2.33
Net earnings per share - diluted			$	0.73					$	0.59					$	0.55					$	0.44					$	2.30
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.92
Return on average assets			1.63		%				1.35		%				1.28		%				1.03		%				1.33		%
Return on average shareholders' equity			13.64		%				10.58		%				9.84		%				7.53		%				10.34		%
Interest income			$	189,914					$	155,112					$	126,151					$	113,829					$	585,006					22.4		%
Tax equivalent adjustment			1,553						1,712						1,625						1,467						6,357						(9.3)		%
Interest income - tax equivalent			191,467						156,824						127,776						115,296						591,363						22.1		%
Interest expense			32,018						17,220						9,141						7,484						65,863						85.9		%
Net interest income - tax equivalent			$	159,449					$	139,604					$	118,635					$	107,812					$	525,500					14.2		%
Net interest margin			4.43		%				3.93		%				3.41		%				3.11		%				3.73		%
Net interest margin (fully tax equivalent) (1)			4.47		%				3.98		%				3.45		%				3.16		%				3.77		%
Full-time equivalent employees			2,070						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

---

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						% Change						% Change
			2022						2022						2022						2022						2021						Linked Qtr.						Comp Qtr.
ASSETS
Cash and due from banks			$	207,501					$	195,553					$	217,481					$	214,571					$	220,031					6.1		%				(5.7)		%
Interest-bearing deposits with other banks			388,182						338,978						270,042						243,004						214,811						14.5		%				80.7		%
Investment securities available-for-sale			3,409,648						3,531,353						3,843,580						3,957,882						4,207,846						(3.4)		%				(19.0)		%
Investment securities held-to-maturity			84,021						85,823						88,057						92,597						98,420						(2.1)		%				(14.6)		%
Other investments			143,160						138,767						132,151						114,563						102,971						3.2		%				39.0		%
Loans held for sale			7,918						10,684						22,044						12,670						29,482						(25.9)		%				(73.1)		%
Loans and leases
Commercial and industrial			3,410,272						3,139,219						2,927,175						2,800,209						2,720,028						8.6		%				25.4		%
Lease financing			236,124						176,072						146,639						125,867						109,624						34.1		%				115.4		%
Construction real estate			512,050						489,446						449,734						479,744						455,894						4.6		%				12.3		%
Commercial real estate			4,052,759						3,976,345						4,007,037						4,031,484						4,226,614						1.9		%				(4.1)		%
Residential real estate			1,092,265						1,024,596						965,387						913,838						896,069						6.6		%				21.9		%
Home equity			733,791						737,318						725,700						707,973						708,399						(0.5)		%				3.6		%
Installment			209,895						202,267						146,680						132,197						119,454						3.8		%				75.7		%
Credit card			51,815						52,173						52,065						50,305						52,217						(0.7)		%				(0.8)		%
Total loans			10,298,971						9,797,436						9,420,417						9,241,617						9,288,299						5.1		%				10.9		%
Less:
Allowance for credit losses			(132,977)						(124,096)						(117,885)						(124,130)						(131,992)						7.2		%				0.7		%
Net loans			10,165,994						9,673,340						9,302,532						9,117,487						9,156,307						5.1		%				11.0		%
Premises and equipment			189,080						189,067						191,099						190,975						193,040						0.0		%				(2.1)		%
Operating leases			91,738						84,851						82,659						61,927						60,811						8.1		%				50.9		%
Goodwill			1,001,507						998,422						999,959						999,959						1,000,749						0.3		%				0.1		%
Other intangibles			93,919						96,528						99,019						101,673						104,367						(2.7)		%				(10.0)		%
Accrued interest and other assets			1,220,648						1,280,427						995,091						901,842						940,306						(4.7)		%				29.8		%
Total Assets			$	17,003,316					$	16,623,793					$	16,243,714					$	16,009,150					$	16,329,141					2.3		%				4.1		%
LIABILITIES
Deposits
Interest-bearing demand			$	3,037,153					$	2,980,465					$	3,096,365					$	3,246,646					$	3,198,745					1.9		%				(5.1)		%
Savings			3,828,139						3,980,020						4,029,717						4,188,867						4,157,374						(3.8)		%				(7.9)		%
Time			1,700,705						1,242,412						1,026,918						1,121,966						1,330,263						36.9		%				27.8		%
Total interest-bearing deposits			8,565,997						8,202,897						8,153,000						8,557,479						8,686,382						4.4		%				(1.4)		%
Noninterest-bearing			4,135,180						4,137,038						4,124,111						4,261,429						4,185,572						0.0		%				(1.2)		%
Total deposits			12,701,177						12,339,935						12,277,111						12,818,908						12,871,954						2.9		%				(1.3)		%
Federal funds purchased and securities sold
under agreements to repurchase			0						3,535						0						0						51,203						100.0		%				(100.0)		%
FHLB short-term borrowings			1,130,000						972,600						896,000						185,000						225,000						16.2		%				402.2		%
Other			157,156						184,912						152,226						57,247						20,000						(15.0)		%				685.8		%
Total short-term borrowings			1,287,156						1,161,047						1,048,226						242,247						296,203						10.9		%				334.6		%
Long-term debt			346,672						355,116						358,578						379,840						409,832						(2.4)		%				(15.4)		%
Total borrowed funds			1,633,828						1,516,163						1,406,804						622,087						706,035						7.8		%				131.4		%
Accrued interest and other liabilities			626,938						773,563						491,129						430,710						492,210						(19.0)		%				27.4		%
Total Liabilities			14,961,943						14,629,661						14,175,044						13,871,705						14,070,199						2.3		%				6.3		%
SHAREHOLDERS' EQUITY
Common stock			1,634,605						1,631,696						1,637,237						1,634,903						1,640,358						0.2		%				(0.4)		%
Retained earnings			968,237						920,943						887,006						857,178						837,473						5.1		%				15.6		%
Accumulated other comprehensive income (loss)			(358,663)						(354,570)						(243,328)						(142,477)						(433)						1.2		%				N/M
Treasury stock, at cost			(202,806)						(203,937)						(212,245)						(212,159)						(218,456)						(0.6)		%				(7.2)		%
Total Shareholders' Equity			2,041,373						1,994,132						2,068,670						2,137,445						2,258,942						2.4		%				(9.6)		%
Total Liabilities and Shareholders' Equity			$	17,003,316					$	16,623,793					$	16,243,714					$	16,009,150					$	16,329,141					2.3		%				4.1		%

6

---

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Quarterly Averages																														Year-to-Date Averages
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Dec. 31,
			2022						2022						2022						2022						2021						2022						2021
ASSETS
Cash and due from banks			$	218,216					$	228,068					$	248,463					$	241,271					$	253,091					$	233,925					$	242,201
Interest-bearing deposits with other banks			372,054						317,146						294,136						273,763						166,904						314,552						73,170
Investment securities			3,705,304						4,003,472						4,118,287						4,308,059						4,343,513						4,032,046						4,113,240
Loans held for sale			8,639						12,283						15,446						15,589						24,491						12,968						27,711
Loans and leases
Commercial and industrial			3,249,252						3,040,547						2,884,373						2,736,613						2,552,686						2,979,273						2,790,733
Lease financing			203,790						158,667						134,334						115,703						67,537						153,380						67,822
Construction real estate			501,787						469,489						460,609						474,278						460,588						476,597						575,883
Commercial real estate			4,028,944						3,969,935						4,025,493						4,139,072						4,391,328						4,040,365						4,379,325
Residential real estate			1,066,859						998,476						936,165						903,567						917,399						976,775						943,981
Home equity			735,039						728,791						716,219						703,714						709,954						721,048						713,521
Installment			208,484						164,063						140,145						125,579						106,188						159,807						91,642
Credit card			56,325						54,946						55,036						52,659						53,056						54,752						49,617
Total loans			10,050,480						9,584,914						9,352,374						9,251,185						9,258,736						9,561,997						9,612,524
Less:
Allowance for credit losses			(127,541)						(119,000)						(123,950)						(129,601)						(144,756)						(125,001)						(162,477)
Net loans			9,922,939						9,465,914						9,228,424						9,121,584						9,113,980						9,436,996						9,450,047
Premises and equipment			189,342						190,738						191,895						192,832						192,941						191,191						198,425
Operating leases			88,365						83,970						73,862						61,297						659						76,967						166
Goodwill			998,575						999,690						999,958						1,000,238						938,453						999,611						937,943
Other intangibles			95,256						97,781						100,354						103,033						71,006						99,081						73,496
Accrued interest and other assets			1,168,908						986,927						915,153						867,253						931,379						985,393						955,961
Total Assets			$	16,767,598					$	16,385,989					$	16,185,978					$	16,184,919					$	16,036,417					$	16,382,730					$	16,072,360
LIABILITIES
Deposits
Interest-bearing demand			$	3,103,091					$	3,105,547					$	3,180,846					$	3,246,919					$	3,069,416					$	3,158,560					$	2,988,359
Savings			3,943,342						4,036,565						4,076,380						4,145,615						4,195,504						4,049,883						4,065,654
Time			1,360,681						1,052,669						1,055,650						1,231,266						1,428,872						1,175,086						1,601,295
Total interest-bearing deposits			8,407,114						8,194,781						8,312,876						8,623,800						8,693,792						8,383,529						8,655,308
Noninterest-bearing			4,225,192						4,176,242						4,224,842						4,160,175						4,191,457						4,196,735						4,005,034
Total deposits			12,632,306						12,371,023						12,537,718						12,783,975						12,885,249						12,580,264						12,660,342
Federal funds purchased and securities sold
under agreements to repurchase			16,167						32,637						24,229						45,358						79,382						29,526						160,967
FHLB short-term borrowings			944,320						892,786						586,846						257,800						2,445						672,928						43,371
Other			184,439						131,237						109,353						33,297						654						115,041						165
Total short-term borrowings			1,144,926						1,056,660						720,428						336,455						82,481						817,495						204,503
Long-term debt			344,162						350,058						359,168						385,240						314,262						359,518						442,720
Total borrowed funds			1,489,088						1,406,718						1,079,596						721,695						396,743						1,177,013						647,223
Accrued interest and other liabilities			636,640						519,069						468,994						453,754						512,605						520,114						504,988
Total Liabilities			14,758,034						14,296,810						14,086,308						13,959,424						13,794,597						14,277,391						13,812,553
SHAREHOLDERS' EQUITY
Common stock			1,632,941						1,631,078						1,635,990						1,638,321						1,637,828						1,634,558						1,636,126
Retained earnings			941,987						899,524						866,910						841,652						822,500						887,826						772,063
Accumulated other comprehensive loss			(361,284)						(236,566)						(190,949)						(38,448)						8,542						(207,778)						28,317
Treasury stock, at cost			(204,080)						(204,857)						(212,281)						(216,030)						(227,050)						(209,267)						(176,699)
Total Shareholders' Equity			2,009,564						2,089,179						2,099,670						2,225,495						2,241,820						2,105,339						2,259,807
Total Liabilities and Shareholders' Equity			$	16,767,598					$	16,385,989					$	16,185,978					$	16,184,919					$	16,036,417					$	16,382,730					$	16,072,360

7

---

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
						Quarterly Averages																																																																																							Year-to-Date Averages
						December 31, 2022																		September 30, 2022																		December 31, 2021																											December 31, 2022												December 31, 2021
						Balance						Interest						Yield						Balance						Interest						Yield						Balance						Interest						Yield																																							Balance						Yield						Balance						Yield
Earning assets
Investments:
Investment securities						$	3,705,304					$	34,353					3.68		%				$	4,003,472					$	31,345					3.11		%				$	4,343,513					$	25,120					2.29		%																																					$	4,032,046					3.00		%				$	4,113,240					2.37		%
Interest-bearing deposits with other banks						372,054						3,262						3.48		%				317,146						1,597						2.00		%				166,904						71						0.17		%																																					314,552						1.74		%				73,170						0.20		%
Gross loans (1)						10,059,119						152,299						6.01		%				9,597,197						122,170						5.05		%				9,283,227						92,682						3.96		%																																					9,574,965						4.79		%				9,640,235						4.00		%
Total earning assets						14,136,477						189,914						5.33		%				13,917,815						155,112						4.42		%				13,793,644						117,873						3.39		%																																					13,921,563						4.20		%				13,826,645						3.49		%
Nonearning assets
Allowance for credit losses						(127,541)																		(119,000)																		(144,756)																																																			(125,001)												(162,477)
Cash and due from banks						218,216																		228,068																		253,091																																																			233,925												242,201
Accrued interest and other assets						2,540,446																		2,359,106																		2,134,438																																																			2,352,243												2,165,991
Total assets						$	16,767,598																	$	16,385,989																	$	16,036,417																																																		$	16,382,730											$	16,072,360
Interest-bearing liabilities
Deposits:
Interest-bearing demand						$	3,103,091					$	5,195					0.66		%				$	3,105,547					$	2,404					0.31		%				$	3,069,416					$	461					0.06		%																																					$	3,158,560					0.28		%				$	2,988,359					0.06		%
Savings						3,943,342						4,819						0.48		%				4,036,565						2,199						0.22		%				4,195,504						901						0.09		%																																					4,049,883						0.22		%				4,065,654						0.10		%
Time						1,360,681						6,154						1.79		%				1,052,669						1,783						0.67		%				1,428,872						1,727						0.48		%																																					1,175,086						0.88		%				1,601,295						0.52		%
Total interest-bearing deposits						8,407,114						16,168						0.76		%				8,194,781						6,386						0.31		%				8,693,792						3,089						0.14		%																																					8,383,529						0.34		%				8,655,308						0.17		%
Borrowed funds
Short-term borrowings						1,144,926						11,091						3.84		%				1,056,660						6,158						2.31		%				82,481						10						0.05		%																																					817,495						2.34		%				204,503						0.10		%
Long-term debt						344,162						4,759						5.49		%				350,058						4,676						5.30		%				314,262						3,968						5.01		%																																					359,518						5.17		%				442,720						3.72		%
Total borrowed funds						1,489,088						15,850						4.22		%				1,406,718						10,834						3.06		%				396,743						3,978						3.98		%																																					1,177,013						3.20		%				647,223						2.57		%
Total interest-bearing liabilities						9,896,202						32,018						1.28		%				9,601,499						17,220						0.71		%				9,090,535						7,067						0.31		%																																					9,560,542						0.69		%				9,302,531						0.33		%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits						4,225,192																		4,176,242																		4,191,457																																																			4,196,735												4,005,034
Other liabilities						636,640																		519,069																		512,605																																																			520,114												504,988
Shareholders' equity						2,009,564																		2,089,179																		2,241,820																																																			2,105,339												2,259,807
Total liabilities & shareholders' equity						$	16,767,598																	$	16,385,989																	$	16,036,417																																																		$	16,382,730											$	16,072,360
Net interest income						$	157,896																	$	137,892																	$	110,806																																																		$	519,143											$	452,118
Net interest spread																		4.05		%																3.71		%																3.08		%																																											3.51		%										3.16		%
Net interest margin																		4.43		%																3.93		%																3.19		%																																											3.73		%										3.27		%
Tax equivalent adjustment																		0.04		%																0.05		%																0.04		%																																											0.04		%										0.04		%
Net interest margin (fully tax equivalent)																		4.47		%																3.98		%																3.23		%																																											3.77		%										3.31		%
(1) Loans held for sale and nonaccrual loans are included in gross loans.

8

---

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						$	5,772								$	(2,764)					$	3,008					$	15,150					$	(5,917)					$	9,233					$	25,677					$	(2,432)					$	23,245
Interest-bearing deposits with other banks						1,184									481						1,665						1,392						1,799						3,191						1,129						4,208						5,337
Gross loans (2)						23,135									6,994						30,129						47,870						11,747						59,617						76,334						(3,127)						73,207
Total earning assets						30,091									4,711						34,802						64,412						7,629						72,041						103,140						(1,351)						101,789
Interest-bearing liabilities
Total interest-bearing deposits						$	9,374								$	408					$	9,782					$	13,630					$	(551)					$	13,079					$	14,617					$	(912)					$	13,705
Borrowed funds
Short-term borrowings						4,078									855						4,933						789						10,292						11,081						4,588						14,346						18,934
Long-term debt						165									(82)						83						378						413						791						6,427						(4,302)						2,125
Total borrowed funds						4,243									773						5,016						1,167						10,705						11,872						11,015						10,044						21,059
Total interest-bearing liabilities						13,617									1,181						14,798						14,797						10,154						24,951						25,632						9,132						34,764
Net interest income (1)						$	16,474								$	3,530					$	20,004					$	49,615					$	(2,525)					$	47,090					$	77,508					$	(10,483)					$	67,025
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.

9

---

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Full Year						Full Year
			2022						2022						2022						2022						2021						2022						2021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period			$	124,096					$	117,885					$	124,130					$	131,992					$	148,903					$	131,992					$	175,679
Purchase accounting ACL for PCD			0						0						0						0						17						0						17
Provision for credit losses			8,689						7,898						(4,267)						(5,589)						(9,525)						6,731						(19,024)
Gross charge-offs
Commercial and industrial			334						1,947						773						2,845						1,364						5,899						15,620
Lease financing			0						13						8						131						0						152						0
Construction real estate			0						0						0						0						1,496						0						1,498
Commercial real estate			245						3						3,419						0						9,150						3,667						13,471
Residential real estate			79						119						4						22						6						224						127
Home equity			72						45						22						21						22						160						1,073
Installment			717						294						361						177						184						1,549						334
Credit card			212						237						212						246						149						907						780
Total gross charge-offs			1,659						2,658						4,799						3,442						12,371						12,558						32,903
Recoveries
Commercial and industrial			293						90						177						379						201						939						1,612
Lease financing			0						13						3						33						0						49						0
Construction real estate			0						0						0						0						0						0						3
Commercial real estate			1,327						561						2,194						222						4,292						4,304						4,785
Residential real estate			15						35						34						90						74						174						228
Home equity			88						185						360						265						303						898						1,223
Installment			68						29						47						21						27						165						151
Credit card			60						58						6						159						71						283						221
Total recoveries			1,851						971						2,821						1,169						4,968						6,812						8,223
Total net charge-offs			(192)						1,687						1,978						2,273						7,403						5,746						24,680
Ending allowance for credit losses			$	132,977					$	124,096					$	117,885					$	124,130					$	131,992					$	132,977					$	131,992
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial			0.01		%				0.24		%				0.08		%				0.37		%				0.18		%				0.17		%				0.50		%
Lease financing			0.00		%				0.00		%				0.01		%				0.34		%				0.00		%				0.07		%				0.00		%
Construction real estate			0.00		%				0.00		%				0.00		%				0.00		%				1.29		%				0.00		%				0.26		%
Commercial real estate			(0.11)		%				(0.06)		%				0.12		%				(0.02)		%				0.44		%				(0.02)		%				0.20		%
Residential real estate			0.02		%				0.03		%				(0.01)		%				(0.03)		%				(0.03)		%				0.01		%				(0.01)		%
Home equity			(0.01)		%				(0.08)		%				(0.19)		%				(0.14)		%				(0.16)		%				(0.10)		%				(0.02)		%
Installment			1.24		%				0.64		%				0.90		%				0.50		%				0.59		%				0.87		%				0.20		%
Credit card			1.07		%				1.29		%				1.50		%				0.67		%				0.58		%				1.14		%				1.13		%
Total net charge-offs			(0.01)		%				0.07		%				0.08		%				0.10		%				0.32		%				0.06		%				0.26		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial			$	8,242					$	8,719					$	11,675					$	14,390					$	17,362					$	8,242					$	17,362
Lease financing			178						199						217						249						203						178						203
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			5,786						13,435						14,650						19,843						19,512						5,786						19,512
Residential real estate			10,691						10,250						8,879						7,432						8,305						10,691						8,305
Home equity			3,123						3,445						3,331						3,377						2,922						3,123						2,922
Installment			603						279						170						163						88						603						88
Nonaccrual loans			28,623						36,327						38,922						45,454						48,392						28,623						48,392
Accruing troubled debt restructurings (TDRs)			10,960						11,022						11,225						8,055						11,616						10,960						11,616
Total nonperforming loans			39,583						47,349						50,147						53,509						60,008						39,583						60,008
Other real estate owned (OREO)			191						22						22						72						98						191						98
Total nonperforming assets			39,774						47,371						50,169						53,581						60,106						39,774						60,106
Accruing loans past due 90 days or more			857						139						142						180						137						857						137
Total underperforming assets			$	40,631					$	47,510					$	50,311					$	53,761					$	60,243					$	40,631					$	60,243
Total classified assets			$	128,137					$	114,956					$	119,769					$	106,839					$	104,815					$	128,137					$	104,815
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans			464.58		%				341.61		%				302.87		%				273.09		%				272.76		%				464.58		%				272.76		%
Nonperforming loans			335.94		%				262.09		%				235.08		%				231.98		%				219.96		%				335.94		%				219.96		%
Total ending loans			1.29		%				1.27		%				1.25		%				1.34		%				1.42		%				1.29		%				1.42		%
Nonperforming loans to total loans			0.38		%				0.48		%				0.53		%				0.58		%				0.65		%				0.38		%				0.65		%
Nonaccrual loans to total loans			0.28		%				0.37		%				0.41		%				0.49		%				0.52		%				0.28		%				0.52		%
Nonperforming assets to
Ending loans, plus OREO			0.39		%				0.48		%				0.53		%				0.58		%				0.65		%				0.39		%				0.65		%
Total assets			0.23		%				0.28		%				0.31		%				0.33		%				0.37		%				0.23		%				0.37		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO			0.28		%				0.37		%				0.41		%				0.49		%				0.52		%				0.28		%				0.52		%
Total assets			0.17		%				0.22		%				0.24		%				0.28		%				0.30		%				0.17		%				0.30		%
Classified assets to total assets			0.75		%				0.69		%				0.74		%				0.67		%				0.64		%				0.75		%				0.64		%
(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million, $12.8 million, $9.5 million, $16.2 million, and $16.0 million, as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.

10

---

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																																	Twelve months ended,
			Dec. 31,						Sep. 30,						June 30,						Mar. 31,						Dec. 31,						Dec. 31,						Dec. 31,
			2022						2022						2022						2022						2021						2022						2021
PER COMMON SHARE
Market Price
High			$	26.68					$	23.75					$	23.03					$	26.73					$	25.79					$	26.73					$	26.40
Low			$	21.56					$	19.02					$	19.09					$	22.92					$	22.89					$	19.02					$	17.62
Close			$	24.23					$	21.08					$	19.40					$	23.05					$	24.38					$	24.23					$	24.38
Average shares outstanding - basic			93,590,674						93,582,250						93,555,131						93,383,932						92,903,900						93,528,712						95,034,690
Average shares outstanding - diluted			94,831,788						94,793,766						94,449,817						94,263,925						93,761,909						94,586,851						95,897,385
Ending shares outstanding			94,891,099						94,833,964						94,448,792						94,451,496						94,149,240						94,891,099						94,149,240
Total shareholders' equity			$	2,041,373					$	1,994,132					$	2,068,670					$	2,137,445					$	2,258,942					$	2,041,373					$	2,258,942
REGULATORY CAPITAL			Preliminary																														Preliminary
Common equity tier 1 capital			$	1,399,420					$	1,348,413					$	1,307,259					$	1,272,115					$	1,262,789					$	1,399,420					$	1,262,789
Common equity tier 1 capital ratio			10.83		%				10.82		%				10.91		%				10.87		%				10.85		%				10.83		%				10.85		%
Tier 1 capital			$	1,443,698					$	1,392,565					$	1,351,287					$	1,316,020					$	1,306,571					$	1,443,698					$	1,306,571
Tier 1 ratio			11.17		%				11.17		%				11.28		%				11.24		%				11.22		%				11.17		%				11.22		%
Total capital			$	1,762,971					$	1,711,741					$	1,670,367					$	1,635,003					$	1,642,549					$	1,762,971					$	1,642,549
Total capital ratio			13.64		%				13.73		%				13.94		%				13.97		%				14.11		%				13.64		%				14.11		%
Total capital in excess of minimum requirement			$	406,032					$	402,662					$	412,167					$	405,931					$	420,118					$	406,032					$	420,118
Total risk-weighted assets			$	12,923,233					$	12,467,422					$	11,982,860					$	11,705,447					$	11,642,201					$	12,923,233					$	11,642,201
Leverage ratio			8.89		%				8.88		%				8.76		%				8.64		%				8.70		%				8.89		%				8.70		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets			12.01		%				12.00		%				12.74		%				13.35		%				13.83		%				12.01		%				13.83		%
Ending tangible shareholders' equity to ending tangible assets (1)			5.95		%				5.79		%				6.40		%				6.95		%				7.58		%				5.95		%				7.58		%
Average shareholders' equity to average assets			11.98		%				12.75		%				12.97		%				13.75		%				13.98		%				12.85		%				14.06		%
Average tangible shareholders' equity to average tangible assets (1)			5.84		%				6.49		%				6.62		%				7.44		%				8.20		%				6.59		%				8.29		%
REPURCHASE PROGRAM (2)
Shares repurchased			0						0						0						0						0						0						4,633,355
Average share repurchase price			N/A						N/A						N/A						N/A						N/A						N/A						$	23.33
Total cost of shares repurchased			N/A						N/A						N/A						N/A						N/A						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

11