01/27/2022 | Press release | Distributed by Public on 01/27/2022 15:19
Contents | Page |
Consolidated Financial Highlights | 2 |
Consolidated Statements of Income | 3 |
Consolidated Quarterly Statements of Income | 4-5 |
Consolidated Statements of Condition | 6 |
Average Consolidated Statements of Condition | 7 |
Net Interest Margin Rate / Volume Analysis | 8-9 |
Credit Quality | 10 |
Capital Adequacy | 11 |
FIRST FINANCIAL BANCORP. | ||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended, | Twelve months ended, | |||||||||||||
Dec. 31, | Sep. 30, | June 30, | Mar. 31, | Dec. 31, | December 31, | |||||||||
2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||
RESULTS OF OPERATIONS | ||||||||||||||
Net income | $ | 46,945 | $ | 60,012 | $ | 50,888 | $ | 47,315 | $ | 48,312 | $ | 205,160 | $ | 155,810 |
Net earnings per share - basic | $ | 0.51 | $ | 0.64 | $ | 0.53 | $ | 0.49 | $ | 0.50 | $ | 2.16 | $ | 1.60 |
Net earnings per share - diluted | $ | 0.50 | $ | 0.63 | $ | 0.52 | $ | 0.48 | $ | 0.49 | $ | 2.14 | $ | 1.59 |
Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 | $ | 0.92 |
KEY FINANCIAL RATIOS | ||||||||||||||
Return on average assets | 1.16 | % | 1.49 | % | 1.26 | % | 1.20 | % | 1.20 | % | 1.28 | % | 1.00 | % |
Return on average shareholders' equity | 8.31 | % | 10.53 | % | 9.02 | % | 8.44 | % | 8.52 | % | 9.08 | % | 7.02 | % |
Return on average tangible shareholders' equity (1)
|
15.11 | % | 19.03 | % | 16.31 | % | 15.24 | % | 15.50 | % | 16.43 | % | 12.97 | % |
Net interest margin | 3.19 | % | 3.28 | % | 3.27 | % | 3.35 | % | 3.45 | % | 3.27 | % | 3.46 | % |
Net interest margin (fully tax equivalent) (1)(2)
|
3.23 | % | 3.32 | % | 3.31 | % | 3.40 | % | 3.49 | % | 3.31 | % | 3.51 | % |
Ending shareholders' equity as a percent of ending assets | 13.83 | % | 14.01 | % | 14.15 | % | 13.97 | % | 14.29 | % | 13.83 | % | 14.29 | % |
Ending tangible shareholders' equity as a percent of: | ||||||||||||||
Ending tangible assets (1)
|
7.58 | % | 8.21 | % | 8.37 | % | 8.22 | % | 8.47 | % | 7.58 | % | 8.47 | % |
Risk-weighted assets (1)
|
9.91 | % | 10.76 | % | 11.12 | % | 11.02 | % | 11.29 | % | 9.91 | % | 11.29 | % |
Average shareholders' equity as a percent of average assets | 13.98 | % | 14.14 | % | 13.96 | % | 14.17 | % | 14.07 | % | 14.06 | % | 14.30 | % |
Average tangible shareholders' equity as a percent of | ||||||||||||||
average tangible assets (1)
|
8.20 | % | 8.35 | % | 8.23 | % | 8.38 | % | 8.26 | % | 8.29 | % | 8.28 | % |
Book value per share | $ | 23.99 | $ | 23.85 | $ | 23.59 | $ | 23.16 | $ | 23.28 | $ | 23.99 | $ | 23.28 |
Tangible book value per share (1)
|
$ | 12.26 | $ | 13.09 | $ | 13.08 | $ | 12.78 | $ | 12.93 | $ | 12.26 | $ | 12.93 |
Common equity tier 1 ratio (3)
|
10.84 | % | 11.54 | % | 11.78 | % | 11.81 | % | 11.82 | % | 10.84 | % | 11.82 | % |
Tier 1 ratio (3)
|
11.22 | % | 11.92 | % | 12.16 | % | 12.19 | % | 12.20 | % | 11.22 | % | 12.20 | % |
Total capital ratio (3)
|
14.10 | % | 14.97 | % | 15.31 | % | 15.41 | % | 15.55 | % | 14.10 | % | 15.55 | % |
Leverage ratio (3)
|
8.70 | % | 9.05 | % | 9.14 | % | 9.34 | % | 9.55 | % | 8.70 | % | 9.55 | % |
AVERAGE BALANCE SHEET ITEMS | ||||||||||||||
Loans (4)
|
$ | 9,283,227 | $ | 9,502,750 | $ | 9,831,965 | $ | 9,951,855 | $ | 10,127,881 | $ | 9,640,235 | $ | 9,902,656 |
Investment securities | 4,343,513 | 4,189,253 | 4,130,207 | 3,782,993 | 3,403,839 | 4,113,240 | 3,212,051 | |||||||
Interest-bearing deposits with other banks | 166,904 | 32,400 | 45,593 | 46,912 | 143,884 | 73,170 | 78,943 | |||||||
Total earning assets | $ | 13,793,644 | $ | 13,724,403 | $ | 14,007,765 | $ | 13,781,760 | $ | 13,675,604 | $ | 13,826,645 | $ | 13,193,650 |
Total assets | $ | 16,036,417 | $ | 15,995,808 | $ | 16,215,469 | $ | 16,042,654 | $ | 16,030,986 | $ | 16,072,360 | $ | 15,529,144 |
Noninterest-bearing deposits | $ | 4,191,457 | $ | 3,981,404 | $ | 4,003,626 | $ | 3,840,046 | $ | 3,720,417 | $ | 4,005,034 | $ | 3,310,483 |
Interest-bearing deposits | 8,693,792 | 8,685,949 | 8,707,553 | 8,531,822 | 8,204,306 | 8,655,308 | 8,054,687 | |||||||
Total deposits | $ | 12,885,249 | $ | 12,667,353 | $ | 12,711,179 | $ | 12,371,868 | $ | 11,924,723 | $ | 12,660,342 | $ | 11,365,170 |
Borrowings | $ | 396,743 | $ | 562,964 | $ | 749,114 | $ | 886,379 | $ | 1,307,461 | $ | 647,223 | $ | 1,458,701 |
Shareholders' equity | $ | 2,241,820 | $ | 2,261,293 | $ | 2,263,687 | $ | 2,272,749 | $ | 2,256,062 | $ | 2,259,807 | $ | 2,220,645 |
CREDIT QUALITY RATIOS | ||||||||||||||
Allowance to ending loans | 1.42 | % | 1.59 | % | 1.68 | % | 1.71 | % | 1.77 | % | 1.42 | % | 1.77 | % |
Allowance to nonaccrual loans | 272.76 | % | 225.73 | % | 184.77 | % | 199.33 | % | 217.55 | % | 272.76 | % | 217.55 | % |
Allowance to nonperforming loans | 219.96 | % | 192.35 | % | 162.12 | % | 175.44 | % | 199.97 | % | 219.96 | % | 199.97 | % |
Nonperforming loans to total loans | 0.65 | % | 0.83 | % | 1.03 | % | 0.97 | % | 0.89 | % | 0.65 | % | 0.89 | % |
Nonaccrual loans to total loans | 0.52 | % | 0.70 | % | 0.91 | % | 0.86 | % | 0.82 | % | 0.52 | % | 0.82 | % |
Nonperforming assets to ending loans, plus OREO | 0.65 | % | 0.83 | % | 1.04 | % | 0.98 | % | 0.90 | % | 0.65 | % | 0.90 | % |
Nonperforming assets to total assets | 0.37 | % | 0.49 | % | 0.62 | % | 0.60 | % | 0.56 | % | 0.37 | % | 0.56 | % |
Classified assets to total assets | 0.64 | % | 1.04 | % | 1.14 | % | 1.22 | % | 0.89 | % | 0.64 | % | 0.89 | % |
Net charge-offs to average loans (annualized) | 0.32 | % | 0.10 | % | 0.23 | % | 0.38 | % | 0.26 | % | 0.26 | % | 0.14 | % |
FIRST FINANCIAL BANCORP. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended, | Twelve months ended, | |||||||||||
December 31, | December 31, | |||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
Interest income | ||||||||||||
Loans and leases, including fees | $ | 92,682 | $ | 106,733 | (13.2) | % | $ | 385,535 | $ | 431,657 | (10.7) | % |
Investment securities | ||||||||||||
Taxable | 20,993 | 18,402 | 14.1 | % | 79,212 | 73,789 | 7.3 | % | ||||
Tax-exempt | 4,127 | 4,839 | (14.7) | % | 18,323 | 19,242 | (4.8) | % | ||||
Total investment securities interest | 25,120 | 23,241 | 8.1 | % | 97,535 | 93,031 | 4.8 | % | ||||
Other earning assets | 71 | 55 | 29.1 | % | 147 | 275 | (46.5) | % | ||||
Total interest income | 117,873 | 130,029 | (9.3) | % | 483,217 | 524,963 | (8.0) | % | ||||
Interest expense | ||||||||||||
Deposits | 3,089 | 5,920 | (47.8) | % | 14,435 | 41,922 | (65.6) | % | ||||
Short-term borrowings | 10 | 30 | (66.7) | % | 198 | 6,442 | (96.9) | % | ||||
Long-term borrowings | 3,968 | 5,606 | (29.2) | % | 16,466 | 20,088 | (18.0) | % | ||||
Total interest expense | 7,067 | 11,556 | (38.8) | % | 31,099 | 68,452 | (54.6) | % | ||||
Net interest income | 110,806 | 118,473 | (6.5) | % | 452,118 | 456,511 | (1.0) | % | ||||
Provision for credit losses-loans and leases | (9,525) | 13,758 | N/M | (19,024) | 70,796 | N/M | ||||||
Provision for credit losses-unfunded commitments | 1,799 | (2,250) | N/M | 903 | (237) | N/M | ||||||
Net interest income after provision for credit losses | 118,532 | 106,965 | 10.8 | % | 470,239 | 385,952 | 21.8 | % | ||||
Noninterest income | ||||||||||||
Service charges on deposit accounts | 8,645 | 7,654 | 12.9 | % | 31,876 | 29,446 | 8.3 | % | ||||
Trust and wealth management fees | 6,038 | 5,395 | 11.9 | % | 23,780 | 21,286 | 11.7 | % | ||||
Bankcard income | 3,602 | 3,060 | 17.7 | % | 14,300 | 11,726 | 22.0 | % | ||||
Client derivative fees | 2,303 | 2,021 | 14.0 | % | 7,927 | 10,313 | (23.1) | % | ||||
Foreign exchange income | 12,808 | 12,305 | 4.1 | % | 44,793 | 39,377 | 13.8 | % | ||||
Net gains from sales of loans | 6,492 | 13,089 | (50.4) | % | 33,021 | 51,176 | (35.5) | % | ||||
Net gain (loss) on sale of investment securities | (14) | 4,618 | (100.3) | % | (759) | 4,563 | (116.6) | % | ||||
Net gain (loss) on equity securities | 321 | 8,975 | (96.4) | % | 702 | 9,045 | (92.2) | % | ||||
Other | 5,465 | 4,398 | 24.3 | % | 15,866 | 12,191 | 30.1 | % | ||||
Total noninterest income | 45,660 | 61,515 | (25.8) | % | 171,506 | 189,123 | (9.3) | % | ||||
Noninterest expenses | ||||||||||||
Salaries and employee benefits | 62,170 | 62,263 | (0.1) | % | 245,924 | 236,779 | 3.9 | % | ||||
Net occupancy | 5,332 | 6,159 | (13.4) | % | 22,142 | 23,266 | (4.8) | % | ||||
Furniture and equipment | 3,161 | 3,596 | (12.1) | % | 13,819 | 14,968 | (7.7) | % | ||||
Data processing | 8,261 | 7,269 | 13.6 | % | 31,363 | 27,514 | 14.0 | % | ||||
Marketing | 2,152 | 1,999 | 7.7 | % | 7,983 | 6,414 | 24.5 | % | ||||
Communication | 677 | 840 | (19.4) | % | 2,930 | 3,492 | (16.1) | % | ||||
Professional services | 5,998 | 3,038 | 97.4 | % | 11,676 | 9,961 | 17.2 | % | ||||
Debt extinguishment | 0 | 7,257 | (100.0) | % | 0 | 7,257 | (100.0) | % | ||||
State intangible tax | 651 | 1,514 | (57.0) | % | 4,256 | 6,058 | (29.7) | % | ||||
FDIC assessments | 1,453 | 1,065 | 36.4 | % | 5,630 | 5,110 | 10.2 | % | ||||
Intangible amortization | 2,401 | 2,764 | (13.1) | % | 9,839 | 11,126 | (11.6) | % | ||||
Other | 17,349 | 17,034 | 1.8 | % | 45,250 | 38,719 | 16.9 | % | ||||
Total noninterest expenses | 109,605 | 114,798 | (4.5) | % | 400,812 | 390,664 | 2.6 | % | ||||
Income before income taxes | 54,587 | 53,682 | 1.7 | % | 240,933 | 184,411 | 30.7 | % | ||||
Income tax expense | 7,642 | 5,370 | 42.3 | % | 35,773 | 28,601 | 25.1 | % | ||||
Net income | $ | 46,945 | $ | 48,312 | (2.8) | % | $ | 205,160 | $ | 155,810 | 31.7 | % |
ADDITIONAL DATA | ||||||||||||
Net earnings per share - basic | $ | 0.51 | $ | 0.50 | $ | 2.16 | $ | 1.60 | ||||
Net earnings per share - diluted | $ | 0.50 | $ | 0.49 | $ | 2.14 | $ | 1.59 | ||||
Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.92 | $ | 0.92 | ||||
Return on average assets | 1.16 | % | 1.20 | % | 1.28 | % | 1.00 | % | ||||
Return on average shareholders' equity | 8.31 | % | 8.52 | % | 9.08 | % | 7.02 | % | ||||
Interest income | $ | 117,873 | $ | 130,029 | (9.3) | % | $ | 483,217 | $ | 524,963 | (8.0) | % |
Tax equivalent adjustment | 1,386 | 1,613 | (14.1) | % | 6,091 | 6,529 | (6.7) | % | ||||
Interest income - tax equivalent | 119,259 | 131,642 | (9.4) | % | 489,308 | 531,492 | (7.9) | % | ||||
Interest expense | 7,067 | 11,556 | (38.8) | % | 31,099 | 68,452 | (54.6) | % | ||||
Net interest income - tax equivalent | $ | 112,192 | $ | 120,086 | (6.6) | % | $ | 458,209 | $ | 463,040 | (1.0) | % |
Net interest margin | 3.19 | % | 3.45 | % | 3.27 | % | 3.46 | % | ||||
Net interest margin (fully tax equivalent) (1)
|
3.23 | % | 3.49 | % | 3.31 | % | 3.51 | % | ||||
Full-time equivalent employees | 1,994 | 2,075 | ||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
FIRST FINANCIAL BANCORP. | ||||||||||||
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
2021 | ||||||||||||
Fourth | Third | Second | First | Year to | % Change | |||||||
Quarter | Quarter | Quarter | Quarter | Date | Linked Qtr. | |||||||
Interest income | ||||||||||||
Loans and leases, including fees | $ | 92,682 | $ | 96,428 | $ | 97,494 | $ | 98,931 | $ | 385,535 | (3.9) | % |
Investment securities | ||||||||||||
Taxable | 20,993 | 20,088 | 19,524 | 18,607 | 79,212 | 4.5 | % | |||||
Tax-exempt | 4,127 | 4,282 | 4,871 | 5,043 | 18,323 | (3.6) | % | |||||
Total investment securities interest | 25,120 | 24,370 | 24,395 | 23,650 | 97,535 | 3.1 | % | |||||
Other earning assets | 71 | 23 | 25 | 28 | 147 | 208.7 | % | |||||
Total interest income | 117,873 | 120,821 | 121,914 | 122,609 | 483,217 | (2.4) | % | |||||
Interest expense | ||||||||||||
Deposits | 3,089 | 3,320 | 3,693 | 4,333 | 14,435 | (7.0) | % | |||||
Short-term borrowings | 10 | 68 | 53 | 67 | 198 | (85.3) | % | |||||
Long-term borrowings | 3,968 | 4,023 | 4,142 | 4,333 | 16,466 | (1.4) | % | |||||
Total interest expense | 7,067 | 7,411 | 7,888 | 8,733 | 31,099 | (4.6) | % | |||||
Net interest income | 110,806 | 113,410 | 114,026 | 113,876 | 452,118 | (2.3) | % | |||||
Provision for credit losses-loans and leases | (9,525) | (8,193) | (4,756) | 3,450 | (19,024) | 16.3 | % | |||||
Provision for credit losses-unfunded commitments | 1,799 | (1,951) | 517 | 538 | 903 | N/M | ||||||
Net interest income after provision for credit losses | 118,532 | 123,554 | 118,265 | 109,888 | 470,239 | (4.1) | % | |||||
Noninterest income | ||||||||||||
Service charges on deposit accounts | 8,645 | 8,548 | 7,537 | 7,146 | 31,876 | 1.1 | % | |||||
Trust and wealth management fees | 6,038 | 5,896 | 6,216 | 5,630 | 23,780 | 2.4 | % | |||||
Bankcard income | 3,602 | 3,838 | 3,732 | 3,128 | 14,300 | (6.1) | % | |||||
Client derivative fees | 2,303 | 2,273 | 1,795 | 1,556 | 7,927 | 1.3 | % | |||||
Foreign exchange income | 12,808 | 9,191 | 12,037 | 10,757 | 44,793 | 39.4 | % | |||||
Net gains from sales of loans | 6,492 | 8,586 | 8,489 | 9,454 | 33,021 | (24.4) | % | |||||
Net gain (loss) on sale of investment securities | (14) | (314) | (265) | (166) | (759) | (95.5) | % | |||||
Net gain (loss) on equity securities | 321 | 108 | 161 | 112 | 702 | 197.2 | % | |||||
Other | 5,465 | 4,411 | 3,285 | 2,705 | 15,866 | 23.9 | % | |||||
Total noninterest income | 45,660 | 42,537 | 42,987 | 40,322 | 171,506 | 7.3 | % | |||||
Noninterest expenses | ||||||||||||
Salaries and employee benefits | 62,170 | 61,717 | 60,784 | 61,253 | 245,924 | 0.7 | % | |||||
Net occupancy | 5,332 | 5,571 | 5,535 | 5,704 | 22,142 | (4.3) | % | |||||
Furniture and equipment | 3,161 | 3,318 | 3,371 | 3,969 | 13,819 | (4.7) | % | |||||
Data processing | 8,261 | 7,951 | 7,864 | 7,287 | 31,363 | 3.9 | % | |||||
Marketing | 2,152 | 2,435 | 2,035 | 1,361 | 7,983 | (11.6) | % | |||||
Communication | 677 | 669 | 746 | 838 | 2,930 | 1.2 | % | |||||
Professional services | 5,998 | 2,199 | 2,029 | 1,450 | 11,676 | 172.8 | % | |||||
State intangible tax | 651 | 1,202 | 1,201 | 1,202 | 4,256 | (45.8) | % | |||||
FDIC assessments | 1,453 | 1,466 | 1,362 | 1,349 | 5,630 | (0.9) | % | |||||
Intangible amortization | 2,401 | 2,479 | 2,480 | 2,479 | 9,839 | (3.1) | % | |||||
Other | 17,349 | 10,051 | 12,236 | 5,614 | 45,250 | 72.6 | % | |||||
Total noninterest expenses | 109,605 | 99,058 | 99,643 | 92,506 | 400,812 | 10.6 | % | |||||
Income before income taxes | 54,587 | 67,033 | 61,609 | 57,704 | 240,933 | (18.6) | % | |||||
Income tax expense | 7,642 | 7,021 | 10,721 | 10,389 | 35,773 | 8.8 | % | |||||
Net income | $ | 46,945 | $ | 60,012 | $ | 50,888 | $ | 47,315 | $ | 205,160 | (21.8) | % |
ADDITIONAL DATA | ||||||||||||
Net earnings per share - basic | $ | 0.51 | $ | 0.64 | $ | 0.53 | $ | 0.49 | $ | 2.16 | ||
Net earnings per share - diluted | $ | 0.50 | $ | 0.63 | $ | 0.52 | $ | 0.48 | $ | 2.14 | ||
Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 | ||
Return on average assets | 1.16 | % | 1.49 | % | 1.26 | % | 1.20 | % | 1.28 | % | ||
Return on average shareholders' equity | 8.31 | % | 10.53 | % | 9.02 | % | 8.44 | % | 9.08 | % | ||
Interest income | $ | 117,873 | $ | 120,821 | $ | 121,914 | $ | 122,609 | $ | 483,217 | (2.4) | % |
Tax equivalent adjustment | 1,386 | 1,434 | 1,619 | 1,652 | 6,091 | (3.3) | % | |||||
Interest income - tax equivalent | 119,259 | 122,255 | 123,533 | 124,261 | 489,308 | (2.5) | % | |||||
Interest expense | 7,067 | 7,411 | 7,888 | 8,733 | 31,099 | (4.6) | % | |||||
Net interest income - tax equivalent | $ | 112,192 | $ | 114,844 | $ | 115,645 | $ | 115,528 | $ | 458,209 | (2.3) | % |
Net interest margin | 3.19 | % | 3.28 | % | 3.27 | % | 3.35 | % | 3.27 | % | ||
Net interest margin (fully tax equivalent) (1)
|
3.23 | % | 3.32 | % | 3.31 | % | 3.40 | % | 3.31 | % | ||
Full-time equivalent employees | 1,994 | 2,026 | 2,053 | 2,063 | ||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
FIRST FINANCIAL BANCORP. | ||||||||||
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | ||||||||||
(Dollars in thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
2020 | ||||||||||
Fourth | Third | Second | First | Full | ||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||
Interest income | ||||||||||
Loans and leases, including fees | $ | 106,733 | $ | 103,249 | $ | 105,900 | $ | 115,775 | $ | 431,657 |
Investment securities | ||||||||||
Taxable | 18,402 | 17,906 | 18,476 | 19,005 | 73,789 | |||||
Tax-exempt | 4,839 | 4,884 | 4,937 | 4,582 | 19,242 | |||||
Total investment securities interest | 23,241 | 22,790 | 23,413 | 23,587 | 93,031 | |||||
Other earning assets | 55 | 31 | 47 | 142 | 275 | |||||
Total interest income | 130,029 | 126,070 | 129,360 | 139,504 | 524,963 | |||||
Interest expense | ||||||||||
Deposits | 5,920 | 7,886 | 11,751 | 16,365 | 41,922 | |||||
Short-term borrowings | 30 | 51 | 1,274 | 5,087 | 6,442 | |||||
Long-term borrowings | 5,606 | 5,953 | 4,759 | 3,770 | 20,088 | |||||
Total interest expense | 11,556 | 13,890 | 17,784 | 25,222 | 68,452 | |||||
Net interest income | 118,473 | 112,180 | 111,576 | 114,282 | 456,511 | |||||
Provision for credit losses-loans and leases | 13,758 | 15,299 | 17,859 | 23,880 | 70,796 | |||||
Provision for credit losses-unfunded commitments | (2,250) | (1,925) | 2,370 | 1,568 | (237) | |||||
Net interest income after provision for credit losses | 106,965 | 98,806 | 91,347 | 88,834 | 385,952 | |||||
Noninterest income | ||||||||||
Service charges on deposit accounts | 7,654 | 7,356 | 6,001 | 8,435 | 29,446 | |||||
Trust and wealth management fees | 5,395 | 4,940 | 5,254 | 5,697 | 21,286 | |||||
Bankcard income | 3,060 | 3,124 | 2,844 | 2,698 | 11,726 | |||||
Client derivative fees | 2,021 | 2,203 | 2,984 | 3,105 | 10,313 | |||||
Foreign exchange income | 12,305 | 10,530 | 6,576 | 9,966 | 39,377 | |||||
Net gains from sales of loans | 13,089 | 18,594 | 16,662 | 2,831 | 51,176 | |||||
Net gain (loss) on sale of investment securities | 4,618 | 2 | 2 | (59) | 4,563 | |||||
Net gain (loss) on equity securities | 8,975 | 18 | 150 | (98) | 9,045 | |||||
Other | 4,398 | 2,732 | 2,252 | 2,809 | 12,191 | |||||
Total noninterest income | 61,515 | 49,499 | 42,725 | 35,384 | 189,123 | |||||
Noninterest expenses | ||||||||||
Salaries and employee benefits | 62,263 | 63,769 | 55,925 | 54,822 | 236,779 | |||||
Net occupancy | 6,159 | 5,625 | 5,378 | 6,104 | 23,266 | |||||
Furniture and equipment | 3,596 | 3,638 | 3,681 | 4,053 | 14,968 | |||||
Data processing | 7,269 | 6,837 | 7,019 | 6,389 | 27,514 | |||||
Marketing | 1,999 | 1,856 | 1,339 | 1,220 | 6,414 | |||||
Communication | 840 | 855 | 907 | 890 | 3,492 | |||||
Professional services | 3,038 | 2,443 | 2,205 | 2,275 | 9,961 | |||||
Debt extinguishment | 7,257 | 0 | 0 | 0 | 7,257 | |||||
State intangible tax | 1,514 | 1,514 | 1,514 | 1,516 | 6,058 | |||||
FDIC assessments | 1,065 | 1,350 | 1,290 | 1,405 | 5,110 | |||||
Intangible amortization | 2,764 | 2,779 | 2,791 | 2,792 | 11,126 | |||||
Other | 17,034 | 6,845 | 6,640 | 8,200 | 38,719 | |||||
Total noninterest expenses | 114,798 | 97,511 | 88,689 | 89,666 | 390,664 | |||||
Income before income taxes | 53,682 | 50,794 | 45,383 | 34,552 | 184,411 | |||||
Income tax expense (benefit) | 5,370 | 9,317 | 7,990 | 5,924 | 28,601 | |||||
Net income | $ | 48,312 | $ | 41,477 | $ | 37,393 | $ | 28,628 | $ | 155,810 |
ADDITIONAL DATA | ||||||||||
Net earnings per share - basic | $ | 0.50 | $ | 0.43 | $ | 0.38 | $ | 0.29 | $ | 1.60 |
Net earnings per share - diluted | $ | 0.49 | $ | 0.42 | $ | 0.38 | $ | 0.29 | $ | 1.59 |
Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 |
Return on average assets | 1.20 | % | 1.04 | % | 0.96 | % | 0.79 | % | 1.00 | % |
Return on average shareholders' equity | 8.52 | % | 7.40 | % | 6.88 | % | 5.21 | % | 7.02 | % |
Interest income | $ | 130,029 | $ | 126,070 | $ | 129,360 | $ | 139,504 | $ | 524,963 |
Tax equivalent adjustment | 1,613 | 1,628 | 1,664 | 1,624 | 6,529 | |||||
Interest income - tax equivalent | 131,642 | 127,698 | 131,024 | 141,128 | 531,492 | |||||
Interest expense | 11,556 | 13,890 | 17,784 | 25,222 | 68,452 | |||||
Net interest income - tax equivalent | $ | 120,086 | $ | 113,808 | $ | 113,240 | $ | 115,906 | $ | 463,040 |
Net interest margin | 3.45 | % | 3.32 | % | 3.38 | % | 3.71 | % | 3.46 | % |
Net interest margin (fully tax equivalent) (1)
|
3.49 | % | 3.36 | % | 3.44 | % | 3.77 | % | 3.51 | % |
Full-time equivalent employees | 2,075 | 2,065 | 2,076 | 2,067 | ||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
|
FIRST FINANCIAL BANCORP. | ||||||||||||||
CONSOLIDATED STATEMENTS OF CONDITION | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Dec. 31, | Sep. 30, | June 30, | Mar. 31, | Dec. 31, | % Change | % Change | ||||||||
2021 | 2021 | 2021 | 2021 | 2020 | Linked Qtr. | Comp Qtr. | ||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 220,031 | $ | 209,748 | $ | 206,918 | $ | 210,191 | $ | 231,054 | 4.9 | % | (4.8) | % |
Interest-bearing deposits with other banks | 214,811 | 29,799 | 38,610 | 19,180 | 20,305 | 620.9 | % | 957.9 | % | |||||
Investment securities available-for-sale | 4,207,846 | 4,114,094 | 3,955,839 | 3,753,763 | 3,424,580 | 2.3 | % | 22.9 | % | |||||
Investment securities held-to-maturity | 98,420 | 103,886 | 112,456 | 121,945 | 131,687 | (5.3) | % | (25.3) | % | |||||
Other investments | 102,971 | 97,831 | 129,432 | 131,814 | 133,198 | 5.3 | % | (22.7) | % | |||||
Loans held for sale | 29,482 | 33,835 | 31,546 | 34,590 | 41,103 | (12.9) | % | (28.3) | % | |||||
Loans and leases | ||||||||||||||
Commercial and industrial | 2,720,028 | 2,602,848 | 2,701,203 | 3,044,825 | 3,007,509 | 4.5 | % | (9.6) | % | |||||
Lease financing | 109,624 | 67,855 | 68,229 | 66,574 | 72,987 | 61.6 | % | 50.2 | % | |||||
Construction real estate | 455,894 | 477,004 | 630,329 | 642,709 | 636,096 | (4.4) | % | (28.3) | % | |||||
Commercial real estate | 4,226,614 | 4,438,374 | 4,332,561 | 4,396,582 | 4,307,858 | (4.8) | % | (1.9) | % | |||||
Residential real estate | 896,069 | 922,492 | 932,112 | 946,522 | 1,003,086 | (2.9) | % | (10.7) | % | |||||
Home equity | 708,399 | 709,050 | 711,756 | 709,667 | 743,099 | (0.1) | % | (4.7) | % | |||||
Installment | 119,454 | 96,077 | 89,143 | 82,421 | 81,850 | 24.3 | % | 45.9 | % | |||||
Credit card | 52,217 | 47,231 | 46,177 | 44,669 | 48,485 | 10.6 | % | 7.7 | % | |||||
Total loans | 9,288,299 | 9,360,931 | 9,511,510 | 9,933,969 | 9,900,970 | (0.8) | % | (6.2) | % | |||||
Less: | ||||||||||||||
Allowance for credit losses | (131,992) | (148,903) | (159,590) | (169,923) | (175,679) | (11.4) | % | (24.9) | % | |||||
Net loans | 9,156,307 | 9,212,028 | 9,351,920 | 9,764,046 | 9,725,291 | (0.6) | % | (5.9) | % | |||||
Premises and equipment | 193,040 | 192,580 | 192,238 | 204,537 | 207,211 | 0.2 | % | (6.8) | % | |||||
Operating leases | 73,857 | 0 | 0 | 0 | 0 | N/M | N/M | |||||||
Goodwill | 1,000,749 | 937,771 | 937,771 | 937,771 | 937,771 | 6.7 | % | 6.7 | % | |||||
Other intangibles | 88,898 | 56,811 | 59,391 | 61,984 | 64,552 | 56.5 | % | 37.7 | % | |||||
Accrued interest and other assets | 942,729 | 968,210 | 1,021,798 | 935,250 | 1,056,382 | (2.6) | % | (10.8) | % | |||||
Total Assets | $ | 16,329,141 | $ | 15,956,593 | $ | 16,037,919 | $ | 16,175,071 | $ | 15,973,134 | 2.3 | % | 2.2 | % |
LIABILITIES | ||||||||||||||
Deposits | ||||||||||||||
Interest-bearing demand | $ | 3,198,745 | $ | 2,916,860 | $ | 2,963,151 | $ | 2,914,761 | $ | 2,914,787 | 9.7 | % | 9.7 | % |
Savings | 4,157,374 | 4,223,905 | 4,093,229 | 4,006,181 | 3,680,774 | (1.6) | % | 12.9 | % | |||||
Time | 1,330,263 | 1,517,419 | 1,548,109 | 1,731,757 | 1,872,733 | (12.3) | % | (29.0) | % | |||||
Total interest-bearing deposits | 8,686,382 | 8,658,184 | 8,604,489 | 8,652,699 | 8,468,294 | 0.3 | % | 2.6 | % | |||||
Noninterest-bearing | 4,185,572 | 4,019,197 | 3,901,691 | 3,995,370 | 3,763,709 | 4.1 | % | 11.2 | % | |||||
Total deposits | 12,871,954 | 12,677,381 | 12,506,180 | 12,648,069 | 12,232,003 | 1.5 | % | 5.2 | % | |||||
Federal funds purchased and securities sold | ||||||||||||||
under agreements to repurchase | 51,203 | 81,850 | 255,791 | 181,387 | 166,594 | (37.4) | % | (69.3) | % | |||||
FHLB short-term borrowings | 225,000 | 107,000 | 217,000 | 0 | 0 | 110.3 | % | N/M | ||||||
Other | 20,000 | 0 | 0 | 0 | 0 | N/M | N/M | |||||||
Total short-term borrowings | 296,203 | 188,850 | 472,791 | 181,387 | 166,594 | 56.8 | % | 77.8 | % | |||||
Long-term debt | 409,832 | 313,230 | 313,039 | 583,722 | 776,202 | 30.8 | % | (47.2) | % | |||||
Total borrowed funds | 706,035 | 502,080 | 785,830 | 765,109 | 942,796 | 40.6 | % | (25.1) | % | |||||
Accrued interest and other liabilities | 492,210 | 540,962 | 476,402 | 502,951 | 516,265 | (9.0) | % | (4.7) | % | |||||
Total Liabilities | 14,070,199 | 13,720,423 | 13,768,412 | 13,916,129 | 13,691,064 | 2.5 | % | 2.8 | % | |||||
SHAREHOLDERS' EQUITY | ||||||||||||||
Common stock | 1,640,358 | 1,637,065 | 1,635,470 | 1,633,137 | 1,638,947 | 0.2 | % | 0.1 | % | |||||
Retained earnings | 837,473 | 812,082 | 773,857 | 745,220 | 720,429 | 3.1 | % | 16.2 | % | |||||
Accumulated other comprehensive income (loss) | (433) | 14,230 | 30,735 | 18,101 | 48,664 | (103.0) | % | (100.9) | % | |||||
Treasury stock, at cost | (218,456) | (227,207) | (170,555) | (137,516) | (125,970) | (3.9) | % | 73.4 | % | |||||
Total Shareholders' Equity | 2,258,942 | 2,236,170 | 2,269,507 | 2,258,942 | 2,282,070 | 1.0 | % | (1.0) | % | |||||
Total Liabilities and Shareholders' Equity | $ | 16,329,141 | $ | 15,956,593 | $ | 16,037,919 | $ | 16,175,071 | $ | 15,973,134 | 2.3 | % | 2.2 | % |
FIRST FINANCIAL BANCORP. | ||||||||||||||
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarterly Averages | Year-to-Date Averages | |||||||||||||
Dec. 31, | Sep. 30, | June 30, | Mar. 31, | Dec. 31, | Dec. 31, | |||||||||
2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 253,091 | $ | 245,212 | $ | 237,964 | $ | 232,275 | $ | 228,427 | $ | 242,201 | $ | 245,436 |
Interest-bearing deposits with other banks | 166,904 | 32,400 | 45,593 | 46,912 | 143,884 | 73,170 | 78,943 | |||||||
Investment securities | 4,343,513 | 4,189,253 | 4,130,207 | 3,782,993 | 3,403,839 | 4,113,240 | 3,212,051 | |||||||
Loans held for sale | 24,491 | 28,365 | 28,348 | 29,689 | 42,402 | 27,711 | 34,390 | |||||||
Loans and leases | ||||||||||||||
Commercial and industrial | 2,552,686 | 2,634,306 | 2,953,185 | 3,029,716 | 3,182,749 | 2,790,733 | 2,999,223 | |||||||
Lease financing | 67,537 | 67,159 | 66,124 | 70,508 | 74,107 | 67,822 | 79,882 | |||||||
Construction real estate | 460,588 | 567,091 | 630,351 | 647,655 | 608,401 | 575,883 | 535,740 | |||||||
Commercial real estate | 4,391,328 | 4,413,003 | 4,372,679 | 4,339,349 | 4,313,408 | 4,379,325 | 4,317,396 | |||||||
Residential real estate | 917,399 | 937,969 | 940,600 | 980,718 | 1,022,701 | 943,981 | 1,043,040 | |||||||
Home equity | 709,954 | 710,794 | 707,409 | 726,134 | 752,425 | 713,521 | 764,436 | |||||||
Installment | 106,188 | 93,937 | 84,768 | 81,377 | 83,509 | 91,642 | 81,451 | |||||||
Credit card | 53,056 | 50,126 | 48,501 | 46,709 | 48,179 | 49,617 | 47,098 | |||||||
Total loans | 9,258,736 | 9,474,385 | 9,803,617 | 9,922,166 | 10,085,479 | 9,612,524 | 9,868,266 | |||||||
Less: | ||||||||||||||
Allowance for credit losses | (144,756) | (157,727) | (169,979) | (177,863) | (172,201) | (162,477) | (153,596) | |||||||
Net loans | 9,113,980 | 9,316,658 | 9,633,638 | 9,744,303 | 9,913,278 | 9,450,047 | 9,714,670 | |||||||
Premises and equipment | 192,941 | 193,775 | 200,558 | 206,628 | 208,800 | 198,425 | 212,413 | |||||||
Operating leases | 801 | 0 | 0 | 0 | 0 | 202 | 0 | |||||||
Goodwill | 938,453 | 937,771 | 937,771 | 937,771 | 937,771 | 937,943 | 937,771 | |||||||
Other intangibles | 56,120 | 58,314 | 60,929 | 63,529 | 66,195 | 59,699 | 70,600 | |||||||
Accrued interest and other assets | 946,123 | 994,060 | 940,461 | 998,554 | 1,086,390 | 969,722 | 1,022,870 | |||||||
Total Assets | $ | 16,036,417 | $ | 15,995,808 | $ | 16,215,469 | $ | 16,042,654 | $ | 16,030,986 | $ | 16,072,360 | $ | 15,529,144 |
LIABILITIES | ||||||||||||||
Deposits | ||||||||||||||
Interest-bearing demand | $ | 3,069,416 | $ | 2,960,388 | $ | 2,973,930 | $ | 2,948,682 | $ | 2,812,748 | $ | 2,988,359 | $ | 2,626,252 |
Savings | 4,195,504 | 4,150,610 | 4,096,077 | 3,815,314 | 3,547,179 | 4,065,654 | 3,260,882 | |||||||
Time | 1,428,872 | 1,574,951 | 1,637,546 | 1,767,826 | 1,844,379 | 1,601,295 | 2,167,553 | |||||||
Total interest-bearing deposits | 8,693,792 | 8,685,949 | 8,707,553 | 8,531,822 | 8,204,306 | 8,655,308 | 8,054,687 | |||||||
Noninterest-bearing | 4,191,457 | 3,981,404 | 4,003,626 | 3,840,046 | 3,720,417 | 4,005,034 | 3,310,483 | |||||||
Total deposits | 12,885,249 | 12,667,353 | 12,711,179 | 12,371,868 | 11,924,723 | 12,660,342 | 11,365,170 | |||||||
Federal funds purchased and securities sold | ||||||||||||||
under agreements to repurchase | 79,382 | 186,401 | 194,478 | 184,483 | 136,795 | 160,967 | 149,036 | |||||||
FHLB short-term borrowings | 2,445 | 63,463 | 40,846 | 67,222 | 7,937 | 43,371 | 441,867 | |||||||
Other | 654 | 0 | 0 | 0 | 0 | 165 | 0 | |||||||
Total short-term borrowings | 82,481 | 249,864 | 235,324 | 251,705 | 144,732 | 204,503 | 590,903 | |||||||
Long-term debt | 314,262 | 313,100 | 513,790 | 634,674 | 1,162,729 | 442,720 | 867,798 | |||||||
Total borrowed funds | 396,743 | 562,964 | 749,114 | 886,379 | 1,307,461 | 647,223 | 1,458,701 | |||||||
Accrued interest and other liabilities | 512,605 | 504,198 | 491,489 | 511,658 | 542,740 | 504,988 | 484,628 | |||||||
Total Liabilities | 13,794,597 | 13,734,515 | 13,951,782 | 13,769,905 | 13,774,924 | 13,812,553 | 13,308,499 | |||||||
SHAREHOLDERS' EQUITY | ||||||||||||||
Common stock | 1,637,828 | 1,635,833 | 1,633,950 | 1,636,884 | 1,638,032 | 1,636,126 | 1,636,850 | |||||||
Retained earnings | 822,500 | 783,760 | 754,456 | 726,351 | 703,257 | 772,063 | 675,503 | |||||||
Accumulated other comprehensive loss | 8,542 | 36,917 | 25,832 | 42,253 | 40,960 | 28,317 | 33,228 | |||||||
Treasury stock, at cost | (227,050) | (195,217) | (150,551) | (132,739) | (126,187) | (176,699) | (124,936) | |||||||
Total Shareholders' Equity | 2,241,820 | 2,261,293 | 2,263,687 | 2,272,749 | 2,256,062 | 2,259,807 | 2,220,645 | |||||||
Total Liabilities and Shareholders' Equity | $ | 16,036,417 | $ | 15,995,808 | $ | 16,215,469 | $ | 16,042,654 | $ | 16,030,986 | $ | 16,072,360 | $ | 15,529,144 |
FIRST FINANCIAL BANCORP. | ||||||||||||||||||||
NET INTEREST MARGIN RATE/VOLUME ANALYSIS | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | |||||||||||||||||||
December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||
Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | |||||||||||
Earning assets | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Investment securities | $ | 4,343,513 | 2.29 | % | $ | 4,189,253 | 2.31 | % | $ | 3,403,839 | 2.71 | % | $ | 4,113,240 | 2.37 | % | $ | 3,212,051 | 2.90 | % |
Interest-bearing deposits with other banks | 166,904 | 0.17 | % | 32,400 | 0.28 | % | 143,884 | 0.15 | % | 73,170 | 0.20 | % | 78,943 | 0.35 | % | |||||
Gross loans (1)
|
9,283,227 | 3.96 | % | 9,502,750 | 4.03 | % | 10,127,881 | 4.18 | % | 9,640,235 | 4.00 | % | 9,902,656 | 4.36 | % | |||||
Total earning assets | 13,793,644 | 3.39 | % | 13,724,403 | 3.49 | % | 13,675,604 | 3.77 | % | 13,826,645 | 3.49 | % | 13,193,650 | 3.98 | % | |||||
Nonearning assets | ||||||||||||||||||||
Allowance for credit losses | (144,756) | (157,727) | (172,201) | (162,477) | (153,596) | |||||||||||||||
Cash and due from banks | 253,091 | 245,212 | 228,427 | 242,201 | 245,436 | |||||||||||||||
Accrued interest and other assets | 2,134,438 | 2,183,920 | 2,299,156 | 2,165,991 | 2,243,654 | |||||||||||||||
Total assets | $ | 16,036,417 | $ | 15,995,808 | $ | 16,030,986 | $ | 16,072,360 | $ | 15,529,144 | ||||||||||
Interest-bearing liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing demand | $ | 3,069,416 | 0.06 | % | $ | 2,960,388 | 0.06 | % | $ | 2,812,748 | 0.08 | % | $ | 2,988,359 | 0.06 | % | $ | 2,626,252 | 0.17 | % |
Savings | 4,195,504 | 0.09 | % | 4,150,610 | 0.09 | % | 3,547,179 | 0.15 | % | 4,065,654 | 0.10 | % | 3,260,882 | 0.22 | % | |||||
Time | 1,428,872 | 0.48 | % | 1,574,951 | 0.49 | % | 1,844,379 | 0.86 | % | 1,601,295 | 0.52 | % | 2,167,553 | 1.39 | % | |||||
Total interest-bearing deposits | 8,693,792 | 0.14 | % | 8,685,949 | 0.15 | % | 8,204,306 | 0.29 | % | 8,655,308 | 0.17 | % | 8,054,687 | 0.52 | % | |||||
Borrowed funds | ||||||||||||||||||||
Short-term borrowings | 82,481 | 0.05 | % | 249,864 | 0.11 | % | 144,732 | 0.08 | % | 204,503 | 0.10 | % | 590,903 | 1.09 | % | |||||
Long-term debt | 314,262 | 5.01 | % | 313,100 | 5.10 | % | 1,162,729 | 1.91 | % | 442,720 | 3.72 | % | 867,798 | 2.31 | % | |||||
Total borrowed funds | 396,743 | 3.98 | % | 562,964 | 2.88 | % | 1,307,461 | 1.71 | % | 647,223 | 2.57 | % | 1,458,701 | 1.82 | % | |||||
Total interest-bearing liabilities | 9,090,535 | 0.31 | % | 9,248,913 | 0.32 | % | 9,511,767 | 0.48 | % | 9,302,531 | 0.33 | % | 9,513,388 | 0.72 | % | |||||
Noninterest-bearing liabilities | ||||||||||||||||||||
Noninterest-bearing demand deposits | 4,191,457 | 3,981,404 | 3,720,417 | 4,005,034 | 3,310,483 | |||||||||||||||
Other liabilities | 512,605 | 504,198 | 542,740 | 504,988 | 484,628 | |||||||||||||||
Shareholders' equity | 2,241,820 | 2,261,293 | 2,256,062 | 2,259,807 | 2,220,645 | |||||||||||||||
Total liabilities & shareholders' equity | $ | 16,036,417 | $ | 15,995,808 | $ | 16,030,986 | $ | 16,072,360 | $ | 15,529,144 | ||||||||||
Net interest income | $ | 110,806 | $ | 113,410 | $ | 118,473 | $ | 452,118 | $ | 456,511 | ||||||||||
Net interest spread | 3.08 | % | 3.17 | % | 3.29 | % | 3.16 | % | 3.26 | % | ||||||||||
Net interest margin | 3.19 | % | 3.28 | % | 3.45 | % | 3.27 | % | 3.46 | % | ||||||||||
Tax equivalent adjustment | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.05 | % | ||||||||||
Net interest margin (fully tax equivalent) | 3.23 | % | 3.32 | % | 3.49 | % | 3.31 | % | 3.51 | % | ||||||||||
(1) Loans held for sale and nonaccrual loans are included in gross loans.
|
FIRST FINANCIAL BANCORP. | ||||||||||||||||||
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
|
||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Linked Qtr. Income Variance | Comparable Qtr. Income Variance | Year-to-Date Income Variance | ||||||||||||||||
Rate | Volume | Total | Rate | Volume | Total | Rate | Volume | Total | ||||||||||
Earning assets | ||||||||||||||||||
Investment securities | $ | (142) | $ | 892 | $ | 750 | $ | (3,555) | $ | 5,434 | $ | 1,879 | $ | (16,865) | $ | 21,369 | $ | 4,504 |
Interest-bearing deposits with other banks | (9) | 57 | 48 | 6 | 10 | 16 | (116) | (12) | (128) | |||||||||
Gross loans (2)
|
(1,554) | (2,192) | (3,746) | (5,618) | (8,433) | (14,051) | (35,627) | (10,495) | (46,122) | |||||||||
Total earning assets | (1,705) | (1,243) | (2,948) | (9,167) | (2,989) | (12,156) | (52,608) | 10,862 | (41,746) | |||||||||
Interest-bearing liabilities | ||||||||||||||||||
Total interest-bearing deposits | $ | (234) | $ | 3 | $ | (231) | $ | (3,005) | $ | 174 | $ | (2,831) | $ | (28,489) | $ | 1,002 | $ | (27,487) |
Borrowed funds | ||||||||||||||||||
Short-term borrowings | (38) | (20) | (58) | (12) | (8) | (20) | (5,870) | (374) | (6,244) | |||||||||
Long-term debt | (70) | 15 | (55) | 9,075 | (10,713) | (1,638) | 12,188 | (15,810) | (3,622) | |||||||||
Total borrowed funds | (108) | (5) | (113) | 9,063 | (10,721) | (1,658) | 6,318 | (16,184) | (9,866) | |||||||||
Total interest-bearing liabilities | (342) | (2) | (344) | 6,058 | (10,547) | (4,489) | (22,171) | (15,182) | (37,353) | |||||||||
Net interest income (1)
|
$ | (1,363) | $ | (1,241) | $ | (2,604) | $ | (15,225) | $ | 7,558 | $ | (7,667) | $ | (30,437) | $ | 26,044 | $ | (4,393) |
(1) Not tax equivalent.
|
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(2) Loans held for sale and nonaccrual loans are included in gross loans.
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FIRST FINANCIAL BANCORP. | ||||||||||||||
CREDIT QUALITY | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Dec. 31, | Sep. 30, | June 30, | Mar. 31, | Dec. 31, | Full Year | Full Year | ||||||||
2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||
ALLOWANCE FOR CREDIT LOSS ACTIVITY | ||||||||||||||
Balance at beginning of period | $ | 148,903 | $ | 159,590 | $ | 169,923 | $ | 175,679 | $ | 168,544 | $ | 175,679 | $ | 57,650 |
Day one adoption impact of ASC 326 | 0 | 0 | 0 | 0 | 0 | 0 | 61,505 | |||||||
Purchase accounting ACL for PCD | 17 | 0 | 0 | 0 | 0 | 17 | 0 | |||||||
Provision for credit losses | (9,525) | (8,193) | (4,756) | 3,450 | 13,758 | (19,024) | 70,796 | |||||||
Gross charge-offs | ||||||||||||||
Commercial and industrial | 1,364 | 2,617 | 3,729 | 7,910 | 1,505 | 15,620 | 5,345 | |||||||
Lease financing | 0 | 0 | 0 | 0 | 0 | 0 | 852 | |||||||
Construction real estate | 1,496 | 0 | 0 | 2 | 0 | 1,498 | 0 | |||||||
Commercial real estate | 9,150 | 1,030 | 2,041 | 1,250 | 6,270 | 13,471 | 12,100 | |||||||
Residential real estate | 6 | 74 | 46 | 1 | 203 | 127 | 488 | |||||||
Home equity | 22 | 200 | 240 | 611 | 386 | 1,073 | 1,541 | |||||||
Installment | 184 | 37 | 77 | 36 | 21 | 334 | 148 | |||||||
Credit card | 149 | 230 | 179 | 222 | 169 | 780 | 885 | |||||||
Total gross charge-offs | 12,371 | 4,188 | 6,312 | 10,032 | 8,554 | 32,903 | 21,359 | |||||||
Recoveries | ||||||||||||||
Commercial and industrial | 201 | 869 | 205 | 337 | 367 | 1,612 | 2,907 | |||||||
Lease financing | 0 | 0 | 0 | 0 | (6) | 0 | 0 | |||||||
Construction real estate | 0 | 0 | 3 | 0 | 3 | 3 | 17 | |||||||
Commercial real estate | 4,292 | 223 | 75 | 195 | 844 | 4,785 | 2,262 | |||||||
Residential real estate | 74 | 56 | 54 | 44 | 145 | 228 | 381 | |||||||
Home equity | 303 | 426 | 317 | 177 | 428 | 1,223 | 1,132 | |||||||
Installment | 27 | 53 | 37 | 34 | 65 | 151 | 158 | |||||||
Credit card | 71 | 67 | 44 | 39 | 85 | 221 | 230 | |||||||
Total recoveries | 4,968 | 1,694 | 735 | 826 | 1,931 | 8,223 | 7,087 | |||||||
Total net charge-offs | 7,403 | 2,494 | 5,577 | 9,206 | 6,623 | 24,680 | 14,272 | |||||||
Ending allowance for credit losses | $ | 131,992 | $ | 148,903 | $ | 159,590 | $ | 169,923 | $ | 175,679 | $ | 131,992 | $ | 175,679 |
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | ||||||||||||||
Commercial and industrial | 0.18 | % | 0.26 | % | 0.48 | % | 1.01 | % | 0.14 | % | 0.50 | % | 0.08 | % |
Lease financing | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.03 | % | 0.00 | % | 1.07 | % |
Construction real estate | 1.29 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.26 | % | 0.00 | % |
Commercial real estate | 0.44 | % | 0.07 | % | 0.18 | % | 0.10 | % | 0.50 | % | 0.20 | % | 0.23 | % |
Residential real estate | (0.03) | % | 0.01 | % | 0.00 | % | (0.02) | % | 0.02 | % | (0.01) | % | 0.01 | % |
Home equity | (0.16) | % | (0.13) | % | (0.04) | % | 0.24 | % | (0.02) | % | (0.02) | % | 0.05 | % |
Installment | 0.59 | % | (0.07) | % | 0.19 | % | 0.01 | % | (0.21) | % | 0.20 | % | (0.01) | % |
Credit card | 0.58 | % | 1.29 | % | 1.12 | % | 1.59 | % | 0.69 | % | 1.13 | % | 1.39 | % |
Total net charge-offs | 0.32 | % | 0.10 | % | 0.23 | % | 0.38 | % | 0.26 | % | 0.26 | % | 0.14 | % |
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | ||||||||||||||
Nonaccrual loans (1)
|
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Commercial and industrial | $ | 17,362 | $ | 15,160 | $ | 27,426 | $ | 24,941 | $ | 29,230 | $ | 17,362 | $ | 29,230 |
Lease financing | 203 | 0 | 16 | 0 | 0 | 203 | 0 | |||||||
Construction real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Commercial real estate | 19,512 | 38,564 | 45,957 | 44,514 | 34,682 | 19,512 | 34,682 | |||||||
Residential real estate | 8,305 | 9,416 | 9,480 | 11,359 | 11,601 | 8,305 | 11,601 | |||||||
Home equity | 2,922 | 2,735 | 3,376 | 4,286 | 5,076 | 2,922 | 5,076 | |||||||
Installment | 88 | 91 | 115 | 146 | 163 | 88 | 163 | |||||||
Nonaccrual loans | 48,392 | 65,966 | 86,370 | 85,246 | 80,752 | 48,392 | 80,752 | |||||||
Accruing troubled debt restructurings (TDRs) | 11,616 | 11,448 | 12,070 | 11,608 | 7,099 | 11,616 | 7,099 | |||||||
Total nonperforming loans | 60,008 | 77,414 | 98,440 | 96,854 | 87,851 | 60,008 | 87,851 | |||||||
Other real estate owned (OREO) | 98 | 340 | 340 | 854 | 1,287 | 98 | 1,287 | |||||||
Total nonperforming assets | 60,106 | 77,754 | 98,780 | 97,708 | 89,138 | 60,106 | 89,138 | |||||||
Accruing loans past due 90 days or more | 137 | 104 | 155 | 92 | 169 | 137 | 169 | |||||||
Total underperforming assets | $ | 60,243 | $ | 77,858 | $ | 98,935 | $ | 97,800 | $ | 89,307 | $ | 60,243 | $ | 89,307 |
Total classified assets | $ | 104,815 | $ | 165,462 | $ | 182,516 | $ | 196,782 | $ | 142,021 | $ | 104,815 | $ | 142,021 |
CREDIT QUALITY RATIOS | ||||||||||||||
Allowance for credit losses to | ||||||||||||||
Nonaccrual loans | 272.76 | % | 225.73 | % | 184.77 | % | 199.33 | % | 217.55 | % | 272.76 | % | 217.55 | % |
Nonperforming loans | 219.96 | % | 192.35 | % | 162.12 | % | 175.44 | % | 199.97 | % | 219.96 | % | 199.97 | % |
Total ending loans | 1.42 | % | 1.59 | % | 1.68 | % | 1.71 | % | 1.77 | % | 1.42 | % | 1.77 | % |
Nonperforming loans to total loans | 0.65 | % | 0.83 | % | 1.03 | % | 0.97 | % | 0.89 | % | 0.65 | % | 0.89 | % |
Nonaccrual loans to total loans | 0.52 | % | 0.70 | % | 0.91 | % | 0.86 | % | 0.82 | % | 0.52 | % | 0.82 | % |
Nonperforming assets to | ||||||||||||||
Ending loans, plus OREO | 0.65 | % | 0.83 | % | 1.04 | % | 0.98 | % | 0.90 | % | 0.65 | % | 0.90 | % |
Total assets | 0.37 | % | 0.49 | % | 0.62 | % | 0.60 | % | 0.56 | % | 0.37 | % | 0.56 | % |
Nonperforming assets, excluding accruing TDRs to | ||||||||||||||
Ending loans, plus OREO | 0.52 | % | 0.71 | % | 0.91 | % | 0.87 | % | 0.83 | % | 0.52 | % | 0.83 | % |
Total assets | 0.30 | % | 0.42 | % | 0.54 | % | 0.53 | % | 0.51 | % | 0.30 | % | 0.51 | % |
Classified assets to total assets | 0.64 | % | 1.04 | % | 1.14 | % | 1.22 | % | 0.89 | % | 0.64 | % | 0.89 | % |
(1) Nonaccrual loans include nonaccrual TDRs of $16.0 million, $20.3 million, $21.5 million, $20.9 million, and $14.7 million, as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.
|
FIRST FINANCIAL BANCORP. | ||||||||||||||
CAPITAL ADEQUACY | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
(Unaudited) | ||||||||||||||
Twelve months ended, | ||||||||||||||
Dec. 31, | Sep. 30, | June 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||
2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||
PER COMMON SHARE | ||||||||||||||
Market Price | ||||||||||||||
High | $ | 25.79 | $ | 24.06 | $ | 26.02 | $ | 26.40 | $ | 17.77 | $ | 26.40 | $ | 25.52 |
Low | $ | 22.89 | $ | 21.48 | $ | 23.35 | $ | 17.62 | $ | 12.07 | $ | 17.62 | $ | 11.40 |
Close | $ | 24.38 | $ | 23.41 | $ | 23.63 | $ | 24.00 | $ | 17.53 | $ | 24.38 | $ | 17.53 |
Average shares outstanding - basic | 92,903,900 | 94,289,097 | 96,123,645 | 96,873,940 | 97,253,787 | 95,034,690 | 97,363,952 | |||||||
Average shares outstanding - diluted | 93,761,909 | 95,143,930 | 97,009,712 | 97,727,527 | 98,020,534 | 95,897,385 | 98,093,098 | |||||||
Ending shares outstanding | 94,149,240 | 93,742,797 | 96,199,509 | 97,517,693 | 98,021,929 | 94,149,240 | 98,021,929 | |||||||
Total shareholders' equity | $ | 2,258,942 | $ | 2,236,170 | $ | 2,269,507 | $ | 2,258,942 | $ | 2,282,070 | $ | 2,258,942 | $ | 2,282,070 |
REGULATORY CAPITAL | Preliminary | Preliminary | ||||||||||||
Common equity tier 1 capital | $ | 1,262,789 | $ | 1,316,059 | $ | 1,333,209 | $ | 1,334,882 | $ | 1,325,922 | $ | 1,262,789 | $ | 1,325,922 |
Common equity tier 1 capital ratio | 10.84 | % | 11.54 | % | 11.78 | % | 11.81 | % | 11.82 | % | 10.84 | % | 11.82 | % |
Tier 1 capital | $ | 1,306,571 | $ | 1,359,297 | $ | 1,376,333 | $ | 1,377,892 | $ | 1,368,818 | $ | 1,306,571 | $ | 1,368,818 |
Tier 1 ratio | 11.22 | % | 11.92 | % | 12.16 | % | 12.19 | % | 12.20 | % | 11.22 | % | 12.20 | % |
Total capital | $ | 1,642,549 | $ | 1,706,513 | $ | 1,732,930 | $ | 1,741,755 | $ | 1,744,802 | $ | 1,642,549 | $ | 1,744,802 |
Total capital ratio | 14.10 | % | 14.97 | % | 15.31 | % | 15.41 | % | 15.55 | % | 14.10 | % | 15.55 | % |
Total capital in excess of minimum requirement | $ | 419,743 | $ | 509,536 | $ | 544,478 | $ | 554,834 | $ | 566,795 | $ | 419,743 | $ | 566,795 |
Total risk-weighted assets | $ | 11,645,769 | $ | 11,399,782 | $ | 11,318,590 | $ | 11,304,012 | $ | 11,219,114 | $ | 11,645,769 | $ | 11,219,114 |
Leverage ratio | 8.70 | % | 9.05 | % | 9.14 | % | 9.34 | % | 9.55 | % | 8.70 | % | 9.55 | % |
OTHER CAPITAL RATIOS | ||||||||||||||
Ending shareholders' equity to ending assets | 13.83 | % | 14.01 | % | 14.15 | % | 13.97 | % | 14.29 | % | 13.83 | % | 14.29 | % |
Ending tangible shareholders' equity to ending tangible assets (1)
|
7.58 | % | 8.21 | % | 8.37 | % | 8.22 | % | 8.47 | % | 7.58 | % | 8.47 | % |
Average shareholders' equity to average assets | 13.98 | % | 14.14 | % | 13.96 | % | 14.17 | % | 14.07 | % | 14.06 | % | 14.30 | % |
Average tangible shareholders' equity to average tangible assets (1)
|
8.20 | % | 8.35 | % | 8.23 | % | 8.38 | % | 8.26 | % | 8.29 | % | 8.28 | % |
REPURCHASE PROGRAM (2)
|
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Shares repurchased | 0 | 2,484,295 | 1,308,945 | 840,115 | 0 | 4,633,355 | 880,000 | |||||||
Average share repurchase price | N/A | $ | 23.04 | $ | 25.11 | $ | 21.40 | N/A | $ | 23.33 | $ | 18.96 | ||
Total cost of shares repurchased | N/A | $ | 57,231 | $ | 32,864 | $ | 17,982 | N/A | $ | 108,077 | $ | 16,686 | ||
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
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(2) Represents share repurchases as part of publicly announced plans.
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N/A = Not applicable |