First Financial Bancorp Announces First Quarter 2019 Results
PRNewswire 25-Apr-2019 4:15 PM
CINCINNATI, April 25, 2019 /PRNewswire/ -- First Financial Bancorp. (NASDAQ:FFBC) ("First Financial" or the "Company") announced financial results for the first quarter 2019 and a quarterly dividend of $0.22 per share, payable on June 17, 2019 to shareholders of record as of June 3, 2019.
For the three months ended March 31, 2019, the Company reported net income of $45.8 million, or $0.47 per diluted common share. These results compare to net income of $55.0 million, or $0.56 per diluted common share, for the fourth quarter of 2018 and $30.5 million, or $0.49 per diluted common share, for the first quarter of 2018. Income before taxes was negatively impacted by a $10.0 million charge-off related to a $16.8 million franchise lending relationship, as well as recognition of $1.8 million of primarily merger-related costs, the combination reducing earnings per diluted common share by $0.09 on a net basis.
Return on average assets for the first quarter of 2019 was 1.33% while return on average tangible common equity was 15.95%. These compare to a return on average assets of 1.59% and return on average tangible common equity of 19.63% in the fourth quarter of 2018 and a return on average assets of 1.40% and a return on average tangible common equity of 17.18% in the first quarter of 2018.
First quarter 2019 highlights include:
- After adjustments(1) for merger-related and nonrecurring items:
- Net income of $0.48 per diluted common share
- 1.38% return on average assets
- 16.45% return on average tangible common equity
- Net interest margin of 4.10% on a fully tax-equivalent basis(1)
- 11 basis point reduction from the linked quarter driven by lower loan fees and moderated purchase accounting impact
- Noninterest expenses of $78.5 million, or $76.7 million as adjusted(1)
- Efficiency ratio of 52.9% for the first quarter; 51.7% as adjusted(1)
- Stable loan balances
- 8% linked quarter increase in loan origination activity offset by prepayments
- Average loan balances increased $11.0 million compared to the linked quarter
- Modest average deposit growth as an increase in time deposits offset seasonal declines in public funds and business demand deposit accounts
- Annualized net charge-offs increased to 64 basis points as a percentage of average loans for the quarter driven by the previously mentioned $10.0 million charge-off resulting in provision expense of $14.1 million
- Continued capital expansion
- Total capital of 14.24%; Tier 1 common equity of 12.03%; Tangible common equity of 9.15%
- Tangible book value increased to $12.19
|
1) Financial information in this release that is described as "adjusted" or that is presented on a fully tax equivalent basis is non-GAAP. 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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Archie Brown, President and Chief Executive Officer, commented, "One year into operating as a combined company, we are encouraged that our core banking fundamentals and earnings power have met our initial expectations. We are disappointed that a single credit loss muted what would have otherwise been a very profitable first quarter. Aside from the $0.08 per share impact from the franchise loss, adjusted(1) earnings per share totaled $0.48 and our return on assets and average tangible common equity remained strong."
Mr. Brown continued, "We remain optimistic about the sustainability of our overall performance. Our net interest margin was strong, despite expected declines in purchase accounting accretion and loan fee volatility. Loan origination activity increased to its highest level post-merger, but we continue to face prepayment headwinds that are muting the impact of new production. We are also pleased with modest deposit growth as higher time deposit balances offset expected seasonal declines in business DDA and public funds. Our efficiency ratio continues to reflect disciplined expense management and we will look to maximize fee income opportunities going forward."
Mr. Brown concluded, "The Board announced a quarterly dividend of $0.22, which equates to an attractive 3.7% yield. Our strong and growing capital ratios reflect the Company's high level performance and give us flexibility to evaluate additional capital deployment opportunities such as executing on our share repurchase plan or making strategic acquisitions that enhance fee income or strengthen our market position."
Full detail of the Company's first quarter 2019 performance is provided in the accompanying financial statements and slide presentation.
Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 26, 2019 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. 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. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10130234. 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 Statement
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: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; (ii) 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; (iii) management's ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the possibility that any of the anticipated benefits of the Company's merger with MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers' performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. 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, 2018, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2019, the Company had $14.1 billion in assets, $8.8 billion in loans, $10.1 billion in deposits and $2.1 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.6 billion in assets under management as of March 31, 2019. The Company operated 159 banking centers as of March 31, 2019, primarily in Ohio, Indiana and Kentucky, 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.
|
FIRST FINANCIAL BANCORP.
|
|
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
(Dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
45,839
|
|
|
$
|
55,014
|
|
|
$
|
50,657
|
|
|
$
|
36,418
|
|
|
$
|
30,506
|
|
|
Net earnings per share - basic
|
$
|
0.47
|
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
$
|
0.37
|
|
|
$
|
0.49
|
|
|
Net earnings per share - diluted
|
$
|
0.47
|
|
|
$
|
0.56
|
|
|
$
|
0.51
|
|
|
$
|
0.37
|
|
|
$
|
0.49
|
|
|
Dividends declared per share
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY FINANCIAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
1.33
|
%
|
|
1.59
|
%
|
|
1.45
|
%
|
|
1.05
|
%
|
|
1.40
|
%
|
|
Return on average shareholders' equity
|
8.88
|
%
|
|
10.68
|
%
|
|
9.94
|
%
|
|
7.36
|
%
|
|
13.31
|
%
|
|
Return on average tangible shareholders' equity
|
15.95
|
%
|
|
19.63
|
%
|
|
18.52
|
%
|
|
13.75
|
%
|
|
17.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
4.05
|
%
|
|
4.16
|
%
|
|
4.06
|
%
|
|
4.10
|
%
|
|
3.80
|
%
|
|
Net interest margin (fully tax equivalent) (1)
|
4.10
|
%
|
|
4.21
|
%
|
|
4.12
|
%
|
|
4.15
|
%
|
|
3.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Ending shareholders' equity as a percent of ending assets
|
15.14
|
%
|
|
14.86
|
%
|
|
14.70
|
%
|
|
14.46
|
%
|
|
10.56
|
%
|
|
Ending tangible shareholders' equity as a percent of:
|
|
|
|
|
|
|
|
|
|
|
Ending tangible assets
|
9.15
|
%
|
|
8.79
|
%
|
|
8.53
|
%
|
|
8.30
|
%
|
|
8.41
|
%
|
|
Risk-weighted assets
|
11.61
|
%
|
|
11.20
|
%
|
|
10.77
|
%
|
|
10.52
|
%
|
|
10.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity as a percent of average assets
|
15.01
|
%
|
|
14.84
|
%
|
|
14.62
|
%
|
|
14.33
|
%
|
|
10.53
|
%
|
|
Average tangible shareholders' equity as a percent of
|
|
|
|
|
|
|
|
|
|
|
average tangible assets
|
8.95
|
%
|
|
8.66
|
%
|
|
8.42
|
%
|
|
8.16
|
%
|
|
8.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share
|
$
|
21.60
|
|
|
$
|
21.23
|
|
|
$
|
20.79
|
|
|
$
|
20.56
|
|
|
$
|
15.11
|
|
|
Tangible book value per share
|
$
|
12.19
|
|
|
$
|
11.72
|
|
|
$
|
11.25
|
|
|
$
|
11.01
|
|
|
$
|
11.75
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 ratio (2)
|
12.03
|
%
|
|
11.87
|
%
|
|
11.52
|
%
|
|
11.15
|
%
|
|
10.77
|
%
|
|
Tier 1 ratio (2)
|
12.43
|
%
|
|
12.28
|
%
|
|
11.93
|
%
|
|
11.55
|
%
|
|
10.77
|
%
|
|
Total capital ratio (2)
|
14.24
|
%
|
|
14.10
|
%
|
|
13.77
|
%
|
|
13.36
|
%
|
|
13.17
|
%
|
|
Leverage ratio (2)
|
9.84
|
%
|
|
9.71
|
%
|
|
9.41
|
%
|
|
9.06
|
%
|
|
9.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET ITEMS
|
|
|
|
|
|
|
|
|
|
|
Loans (3)
|
$
|
8,773,310
|
|
|
$
|
8,766,302
|
|
|
$
|
8,848,710
|
|
|
$
|
8,933,400
|
|
|
$
|
6,016,492
|
|
|
FDIC indemnification asset
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,502
|
|
|
Investment securities
|
3,355,732
|
|
|
3,204,758
|
|
|
3,168,044
|
|
|
3,157,339
|
|
|
2,042,781
|
|
|
Interest-bearing deposits with other banks
|
34,709
|
|
|
32,013
|
|
|
39,873
|
|
|
29,261
|
|
|
27,073
|
|
|
Total earning assets
|
$
|
12,163,751
|
|
|
$
|
12,003,073
|
|
|
$
|
12,056,627
|
|
|
$
|
12,120,000
|
|
|
$
|
8,087,848
|
|
|
Total assets
|
$
|
13,952,551
|
|
|
$
|
13,768,958
|
|
|
$
|
13,822,675
|
|
|
$
|
13,956,360
|
|
|
$
|
8,830,176
|
|
|
Noninterest-bearing deposits
|
$
|
2,457,587
|
|
|
$
|
2,476,773
|
|
|
$
|
2,388,976
|
|
|
$
|
2,421,230
|
|
|
$
|
1,570,572
|
|
|
Interest-bearing deposits
|
7,610,092
|
|
|
7,573,069
|
|
|
7,499,112
|
|
|
7,961,405
|
|
|
5,332,740
|
|
|
Total deposits
|
$
|
10,067,679
|
|
|
$
|
10,049,842
|
|
|
$
|
9,888,088
|
|
|
$
|
10,382,635
|
|
|
$
|
6,903,312
|
|
|
Borrowings
|
$
|
1,587,068
|
|
|
$
|
1,509,642
|
|
|
$
|
1,748,415
|
|
|
$
|
1,408,024
|
|
|
$
|
866,848
|
|
|
Shareholders' equity
|
$
|
2,094,234
|
|
|
$
|
2,042,884
|
|
|
$
|
2,021,400
|
|
|
$
|
2,000,093
|
|
|
$
|
929,474
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
Allowance to ending loans
|
0.64
|
%
|
|
0.64
|
%
|
|
0.65
|
%
|
|
0.61
|
%
|
|
0.89
|
%
|
|
Allowance to nonaccrual loans
|
95.40
|
%
|
|
79.97
|
%
|
|
136.22
|
%
|
|
133.65
|
%
|
|
179.57
|
%
|
|
Allowance to nonperforming loans
|
68.94
|
%
|
|
65.13
|
%
|
|
92.08
|
%
|
|
86.80
|
%
|
|
120.24
|
%
|
|
Nonperforming loans to total loans
|
0.93
|
%
|
|
0.98
|
%
|
|
0.71
|
%
|
|
0.70
|
%
|
|
0.74
|
%
|
|
Nonperforming assets to ending loans, plus OREO
|
0.95
|
%
|
|
1.00
|
%
|
|
0.73
|
%
|
|
0.72
|
%
|
|
0.76
|
%
|
|
Nonperforming assets to total assets
|
0.60
|
%
|
|
0.63
|
%
|
|
0.47
|
%
|
|
0.46
|
%
|
|
0.52
|
%
|
|
Classified assets to total assets
|
1.01
|
%
|
|
0.94
|
%
|
|
1.00
|
%
|
|
1.00
|
%
|
|
0.98
|
%
|
|
Net charge-offs to average loans (annualized)
|
0.64
|
%
|
|
0.29
|
%
|
|
(0.02)
|
%
|
|
0.18
|
%
|
|
0.13
|
%
|
|
|
(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 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.
|
|
(2) March 31, 2019 regulatory capital ratios are preliminary.
|
|
(3) Includes loans held for sale.
|
|
FIRST FINANCIAL BANCORP.
|
|
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
|
|
(Dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Full
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Year
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees
|
$
|
123,056
|
|
|
$
|
126,580
|
|
|
$
|
123,397
|
|
|
$
|
122,290
|
|
|
$
|
74,920
|
|
|
$
|
447,187
|
|
|
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
24,235
|
|
|
22,761
|
|
|
21,801
|
|
|
20,844
|
|
|
13,670
|
|
|
79,076
|
|
|
Tax-exempt
|
4,258
|
|
|
3,896
|
|
|
3,807
|
|
|
4,068
|
|
|
1,657
|
|
|
13,428
|
|
|
Total investment securities interest
|
28,493
|
|
|
26,657
|
|
|
25,608
|
|
|
24,912
|
|
|
15,327
|
|
|
92,504
|
|
|
Other earning assets
|
210
|
|
|
192
|
|
|
215
|
|
|
177
|
|
|
107
|
|
|
691
|
|
|
Total interest income
|
151,759
|
|
|
153,429
|
|
|
149,220
|
|
|
147,379
|
|
|
90,354
|
|
|
540,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
19,243
|
|
|
17,198
|
|
|
14,672
|
|
|
14,794
|
|
|
10,298
|
|
|
56,962
|
|
|
Short-term borrowings
|
5,960
|
|
|
5,186
|
|
|
6,052
|
|
|
4,132
|
|
|
2,663
|
|
|
18,033
|
|
|
Long-term borrowings
|
5,041
|
|
|
5,086
|
|
|
5,011
|
|
|
4,474
|
|
|
1,581
|
|
|
16,152
|
|
|
Total interest expense
|
30,244
|
|
|
27,470
|
|
|
25,735
|
|
|
23,400
|
|
|
14,542
|
|
|
91,147
|
|
|
Net interest income
|
121,515
|
|
|
125,959
|
|
|
123,485
|
|
|
123,979
|
|
|
75,812
|
|
|
449,235
|
|
|
Provision for loan and lease losses
|
14,083
|
|
|
5,310
|
|
|
3,238
|
|
|
3,735
|
|
|
2,303
|
|
|
14,586
|
|
|
Net interest income after provision for loan and lease losses
|
107,432
|
|
|
120,649
|
|
|
120,247
|
|
|
120,244
|
|
|
73,509
|
|
|
434,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
8,903
|
|
|
10,185
|
|
|
10,316
|
|
|
9,568
|
|
|
5,039
|
|
|
35,108
|
|
|
Trust and wealth management fees
|
4,070
|
|
|
3,703
|
|
|
3,728
|
|
|
3,697
|
|
|
3,954
|
|
|
15,082
|
|
|
Bankcard income
|
5,586
|
|
|
6,247
|
|
|
5,261
|
|
|
5,343
|
|
|
3,394
|
|
|
20,245
|
|
|
Client derivative fees
|
1,704
|
|
|
1,433
|
|
|
3,029
|
|
|
1,463
|
|
|
1,757
|
|
|
7,682
|
|
|
Net gains from sales of loans
|
1,890
|
|
|
1,428
|
|
|
1,739
|
|
|
2,316
|
|
|
588
|
|
|
6,071
|
|
|
Net gains on sale of investment securities
|
(178)
|
|
|
36
|
|
|
(167)
|
|
|
(30)
|
|
|
0
|
|
|
(161)
|
|
|
Other
|
4,852
|
|
|
6,472
|
|
|
4,778
|
|
|
5,899
|
|
|
2,206
|
|
|
19,355
|
|
|
Total noninterest income
|
26,827
|
|
|
29,504
|
|
|
28,684
|
|
|
28,256
|
|
|
16,938
|
|
|
103,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
47,912
|
|
|
51,505
|
|
|
50,852
|
|
|
55,531
|
|
|
31,102
|
|
|
188,990
|
|
|
Net occupancy
|
6,630
|
|
|
6,322
|
|
|
6,765
|
|
|
6,631
|
|
|
4,497
|
|
|
24,215
|
|
|
Furniture and equipment
|
3,416
|
|
|
3,498
|
|
|
4,072
|
|
|
5,298
|
|
|
2,040
|
|
|
14,908
|
|
|
Data processing
|
5,127
|
|
|
5,599
|
|
|
4,502
|
|
|
14,304
|
|
|
3,672
|
|
|
28,077
|
|
|
Marketing
|
1,606
|
|
|
1,651
|
|
|
2,502
|
|
|
2,644
|
|
|
801
|
|
|
7,598
|
|
|
Communication
|
728
|
|
|
805
|
|
|
785
|
|
|
1,118
|
|
|
459
|
|
|
3,167
|
|
|
Professional services
|
2,252
|
|
|
1,794
|
|
|
2,621
|
|
|
5,659
|
|
|
2,198
|
|
|
12,272
|
|
|
State intangible tax
|
1,310
|
|
|
1,086
|
|
|
1,223
|
|
|
1,078
|
|
|
765
|
|
|
4,152
|
|
|
FDIC assessments
|
950
|
|
|
1,018
|
|
|
734
|
|
|
1,323
|
|
|
894
|
|
|
3,969
|
|
|
Loss (gain) - other real estate owned
|
70
|
|
|
41
|
|
|
538
|
|
|
(283)
|
|
|
77
|
|
|
373
|
|
|
Intangible amortization
|
2,045
|
|
|
2,229
|
|
|
2,486
|
|
|
2,364
|
|
|
280
|
|
|
7,359
|
|
|
Other
|
6,453
|
|
|
7,804
|
|
|
8,335
|
|
|
7,088
|
|
|
5,503
|
|
|
28,730
|
|
|
Total noninterest expenses
|
78,499
|
|
|
83,352
|
|
|
85,415
|
|
|
102,755
|
|
|
52,288
|
|
|
323,810
|
|
|
Income before income taxes
|
55,760
|
|
|
66,801
|
|
|
63,516
|
|
|
45,745
|
|
|
38,159
|
|
|
214,221
|
|
|
Income tax expense (benefit)
|
9,921
|
|
|
11,787
|
|
|
12,859
|
|
|
9,327
|
|
|
7,653
|
|
|
41,626
|
|
|
Net income
|
$
|
45,839
|
|
|
$
|
55,014
|
|
|
$
|
50,657
|
|
|
$
|
36,418
|
|
|
$
|
30,506
|
|
|
$
|
172,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share - basic
|
$
|
0.47
|
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
$
|
0.37
|
|
|
$
|
0.49
|
|
|
$
|
1.95
|
|
|
Net earnings per share - diluted
|
$
|
0.47
|
|
|
$
|
0.56
|
|
|
$
|
0.51
|
|
|
$
|
0.37
|
|
|
$
|
0.49
|
|
|
$
|
1.93
|
|
|
Dividends declared per share
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
|
$
|
0.19
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
1.33
|
%
|
|
1.59
|
%
|
|
1.45
|
%
|
|
1.05
|
%
|
|
1.40
|
%
|
|
1.37
|
%
|
|
Return on average shareholders' equity
|
8.88
|
%
|
|
10.68
|
%
|
|
9.94
|
%
|
|
7.36
|
%
|
|
13.31
|
%
|
|
9.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
$
|
151,759
|
|
|
$
|
153,429
|
|
|
$
|
149,220
|
|
|
$
|
147,379
|
|
|
$
|
90,354
|
|
|
$
|
540,382
|
|
|
Tax equivalent adjustment
|
1,523
|
|
|
1,442
|
|
|
1,567
|
|
|
1,420
|
|
|
718
|
|
|
5,147
|
|
|
Interest income - tax equivalent
|
153,282
|
|
|
154,871
|
|
|
150,787
|
|
|
148,799
|
|
|
91,072
|
|
|
545,529
|
|
|
Interest expense
|
30,244
|
|
|
27,470
|
|
|
25,735
|
|
|
23,400
|
|
|
14,542
|
|
|
91,147
|
|
|
Net interest income - tax equivalent
|
$
|
123,038
|
|
|
$
|
127,401
|
|
|
$
|
125,052
|
|
|
$
|
125,399
|
|
|
$
|
76,530
|
|
|
$
|
454,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
4.05
|
%
|
|
4.16
|
%
|
|
4.06
|
%
|
|
4.10
|
%
|
|
3.80
|
%
|
|
4.05
|
%
|
|
Net interest margin (fully tax equivalent) (1)
|
4.10
|
%
|
|
4.21
|
%
|
|
4.12
|
%
|
|
4.15
|
%
|
|
3.84
|
%
|
|
4.10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees
|
2,087
|
|
|
2,073
|
|
|
2,028
|
|
|
2,118
|
|
|
1,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
% Change
|
|
% Change
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
Linked Qtr.
|
|
Comparable Qtr.
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
$
|
169,004
|
|
|
$
|
236,221
|
|
|
$
|
193,288
|
|
|
$
|
216,667
|
|
|
$
|
116,581
|
|
|
(28.5)
|
%
|
|
45.0
|
%
|
|
Interest-bearing deposits with other banks
|
50,224
|
|
|
37,738
|
|
|
28,989
|
|
|
37,915
|
|
|
10,200
|
|
|
33.1
|
%
|
|
392.4
|
%
|
|
Investment securities available-for-sale
|
3,113,811
|
|
|
2,779,255
|
|
|
2,626,726
|
|
|
2,654,909
|
|
|
1,359,381
|
|
|
12.0
|
%
|
|
129.1
|
%
|
|
Investment securities held-to-maturity
|
158,305
|
|
|
429,328
|
|
|
434,369
|
|
|
443,957
|
|
|
633,722
|
|
|
(63.1)
|
%
|
|
(75.0)
|
%
|
|
Other investments
|
115,731
|
|
|
115,660
|
|
|
115,757
|
|
|
95,004
|
|
|
53,070
|
|
|
0.1
|
%
|
|
118.1
|
%
|
|
Loans held for sale
|
8,217
|
|
|
4,372
|
|
|
13,277
|
|
|
15,821
|
|
|
8,048
|
|
|
87.9
|
%
|
|
2.1
|
%
|
|
Loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
2,543,427
|
|
|
2,514,661
|
|
|
2,426,590
|
|
|
2,440,596
|
|
|
1,943,741
|
|
|
1.1
|
%
|
|
30.9
|
%
|
|
Lease financing
|
95,573
|
|
|
93,415
|
|
|
95,317
|
|
|
96,198
|
|
|
81,617
|
|
|
2.3
|
%
|
|
17.1
|
%
|
|
Construction real estate
|
458,113
|
|
|
548,935
|
|
|
565,077
|
|
|
555,468
|
|
|
494,665
|
|
|
(16.5)
|
%
|
|
(7.4)
|
%
|
|
Commercial real estate
|
3,802,179
|
|
|
3,754,681
|
|
|
3,868,143
|
|
|
3,888,993
|
|
|
2,544,051
|
|
|
1.3
|
%
|
|
49.5
|
%
|
|
Residential real estate
|
975,120
|
|
|
955,646
|
|
|
932,962
|
|
|
918,904
|
|
|
468,584
|
|
|
2.0
|
%
|
|
108.1
|
%
|
|
Home equity
|
797,118
|
|
|
817,282
|
|
|
816,133
|
|
|
835,031
|
|
|
483,643
|
|
|
(2.5)
|
%
|
|
64.8
|
%
|
|
Installment
|
90,689
|
|
|
93,212
|
|
|
97,413
|
|
|
100,726
|
|
|
39,248
|
|
|
(2.7)
|
%
|
|
131.1
|
%
|
|
Credit card
|
46,982
|
|
|
46,382
|
|
|
45,741
|
|
|
48,665
|
|
|
46,472
|
|
|
1.3
|
%
|
|
1.1
|
%
|
|
Total loans
|
8,809,201
|
|
|
8,824,214
|
|
|
8,847,376
|
|
|
8,884,581
|
|
|
6,102,021
|
|
|
(0.2)
|
%
|
|
44.4
|
%
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
56,722
|
|
|
56,542
|
|
|
57,715
|
|
|
54,076
|
|
|
54,380
|
|
|
0.3
|
%
|
|
4.3
|
%
|
|
Net loans
|
8,752,479
|
|
|
8,767,672
|
|
|
8,789,661
|
|
|
8,830,505
|
|
|
6,047,641
|
|
|
(0.2)
|
%
|
|
44.7
|
%
|
|
Premises and equipment
|
210,676
|
|
|
215,652
|
|
|
219,940
|
|
|
223,950
|
|
|
127,046
|
|
|
(2.3)
|
%
|
|
65.8
|
%
|
|
Goodwill
|
879,727
|
|
|
880,251
|
|
|
881,033
|
|
|
883,025
|
|
|
204,083
|
|
|
(0.1)
|
%
|
|
331.1
|
%
|
|
Other intangibles
|
38,571
|
|
|
40,805
|
|
|
43,356
|
|
|
42,891
|
|
|
3,506
|
|
|
(5.5)
|
%
|
|
N/M
|
|
|
Accrued interest and other assets
|
577,518
|
|
|
479,706
|
|
|
496,271
|
|
|
475,523
|
|
|
335,151
|
|
|
20.4
|
%
|
|
72.3
|
%
|
|
Total Assets
|
$
|
14,074,263
|
|
|
$
|
13,986,660
|
|
|
$
|
13,842,667
|
|
|
$
|
13,920,167
|
|
|
$
|
8,898,429
|
|
|
0.6
|
%
|
|
58.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
|
$
|
2,235,036
|
|
|
$
|
2,307,071
|
|
|
$
|
2,284,271
|
|
|
$
|
2,440,088
|
|
|
$
|
1,442,399
|
|
|
(3.1)
|
%
|
|
55.0
|
%
|
|
Savings
|
3,100,894
|
|
|
3,167,325
|
|
|
3,134,944
|
|
|
3,087,683
|
|
|
2,450,196
|
|
|
(2.1)
|
%
|
|
26.6
|
%
|
|
Time
|
2,309,810
|
|
|
2,173,564
|
|
|
1,957,574
|
|
|
2,104,044
|
|
|
1,545,273
|
|
|
6.3
|
%
|
|
49.5
|
%
|
|
Total interest-bearing deposits
|
7,645,740
|
|
|
7,647,960
|
|
|
7,376,789
|
|
|
7,631,815
|
|
|
5,437,868
|
|
|
0.0
|
%
|
|
40.6
|
%
|
|
Noninterest-bearing
|
2,488,157
|
|
|
2,492,434
|
|
|
2,375,845
|
|
|
2,471,932
|
|
|
1,572,636
|
|
|
(0.2)
|
%
|
|
58.2
|
%
|
|
Total deposits
|
10,133,897
|
|
|
10,140,394
|
|
|
9,752,634
|
|
|
10,103,747
|
|
|
7,010,504
|
|
|
(0.1)
|
%
|
|
44.6
|
%
|
|
Federal funds purchased and securities sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
under agreements to repurchase
|
95,015
|
|
|
183,591
|
|
|
123,452
|
|
|
88,070
|
|
|
56,732
|
|
|
(48.2)
|
%
|
|
67.5
|
%
|
|
FHLB short-term borrowings
|
952,400
|
|
|
857,100
|
|
|
1,170,800
|
|
|
1,100,233
|
|
|
601,600
|
|
|
11.1
|
%
|
|
58.3
|
%
|
|
Total short-term borrowings
|
1,047,415
|
|
|
1,040,691
|
|
|
1,294,252
|
|
|
1,188,303
|
|
|
658,332
|
|
|
0.6
|
%
|
|
59.1
|
%
|
|
Long-term debt
|
546,423
|
|
|
570,739
|
|
|
570,037
|
|
|
469,423
|
|
|
169,695
|
|
|
(4.3)
|
%
|
|
222.0
|
%
|
|
Total borrowed funds
|
1,593,838
|
|
|
1,611,430
|
|
|
1,864,289
|
|
|
1,657,726
|
|
|
828,027
|
|
|
(1.1)
|
%
|
|
92.5
|
%
|
|
Accrued interest and other liabilities
|
216,109
|
|
|
156,587
|
|
|
190,224
|
|
|
145,757
|
|
|
119,913
|
|
|
38.0
|
%
|
|
80.2
|
%
|
|
Total Liabilities
|
11,943,844
|
|
|
11,908,411
|
|
|
11,807,147
|
|
|
11,907,230
|
|
|
7,958,444
|
|
|
0.3
|
%
|
|
50.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
1,622,554
|
|
|
1,633,256
|
|
|
1,633,828
|
|
|
1,632,572
|
|
|
571,457
|
|
|
(0.7)
|
%
|
|
183.9
|
%
|
|
Retained earnings
|
626,408
|
|
|
600,014
|
|
|
564,545
|
|
|
533,319
|
|
|
515,649
|
|
|
4.4
|
%
|
|
21.5
|
%
|
|
Accumulated other comprehensive loss
|
(19,635)
|
|
|
(44,408)
|
|
|
(52,897)
|
|
|
(43,008)
|
|
|
(34,834)
|
|
|
(55.8)
|
%
|
|
(43.6)
|
%
|
|
Treasury stock, at cost
|
(98,908)
|
|
|
(110,613)
|
|
|
(109,956)
|
|
|
(109,946)
|
|
|
(112,287)
|
|
|
(10.6)
|
%
|
|
(11.9)
|
%
|
|
Total Shareholders' Equity
|
2,130,419
|
|
|
2,078,249
|
|
|
2,035,520
|
|
|
2,012,937
|
|
|
939,985
|
|
|
2.5
|
%
|
|
126.6
|
%
|
|
Total Liabilities and Shareholders' Equity
|
$
|
14,074,263
|
|
|
$
|
13,986,660
|
|
|
$
|
13,842,667
|
|
|
$
|
13,920,167
|
|
|
$
|
8,898,429
|
|
|
0.6
|
%
|
|
58.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FINANCIAL BANCORP.
|
|
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
Quarterly Averages
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
$
|
181,695
|
|
|
$
|
213,927
|
|
|
$
|
199,843
|
|
|
$
|
224,824
|
|
|
$
|
116,095
|
|
|
Federal funds sold
|
0
|
|
|
0
|
|
|
0
|
|
|
786
|
|
|
0
|
|
|
Interest-bearing deposits with other banks
|
34,709
|
|
|
32,013
|
|
|
39,873
|
|
|
28,475
|
|
|
27,073
|
|
|
Investment securities
|
3,355,732
|
|
|
3,204,758
|
|
|
3,168,044
|
|
|
3,157,339
|
|
|
2,042,781
|
|
|
Loans held for sale
|
6,392
|
|
|
10,411
|
|
|
15,270
|
|
|
14,462
|
|
|
9,171
|
|
|
Loans and leases
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
2,509,274
|
|
|
2,402,296
|
|
|
2,392,229
|
|
|
2,421,244
|
|
|
1,897,726
|
|
|
Lease financing
|
91,043
|
|
|
94,111
|
|
|
94,030
|
|
|
94,431
|
|
|
86,755
|
|
|
Construction real estate
|
496,153
|
|
|
567,086
|
|
|
570,125
|
|
|
577,883
|
|
|
483,930
|
|
|
Commercial real estate
|
3,762,314
|
|
|
3,793,376
|
|
|
3,887,748
|
|
|
3,923,784
|
|
|
2,495,604
|
|
|
Residential real estate
|
961,584
|
|
|
941,047
|
|
|
918,361
|
|
|
929,667
|
|
|
468,855
|
|
|
Home equity
|
807,768
|
|
|
813,779
|
|
|
822,834
|
|
|
825,236
|
|
|
487,073
|
|
|
Installment
|
91,270
|
|
|
95,779
|
|
|
99,907
|
|
|
99,896
|
|
|
40,409
|
|
|
Credit card
|
47,512
|
|
|
48,417
|
|
|
48,206
|
|
|
46,797
|
|
|
46,969
|
|
|
Total loans
|
8,766,918
|
|
|
8,755,891
|
|
|
8,833,440
|
|
|
8,918,938
|
|
|
6,007,321
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
57,088
|
|
|
58,216
|
|
|
55,877
|
|
|
55,318
|
|
|
55,016
|
|
|
Net loans
|
8,709,830
|
|
|
8,697,675
|
|
|
8,777,563
|
|
|
8,863,620
|
|
|
5,952,305
|
|
|
Premises and equipment
|
213,208
|
|
|
218,430
|
|
|
222,718
|
|
|
230,475
|
|
|
126,016
|
|
|
Goodwill
|
878,541
|
|
|
878,669
|
|
|
882,917
|
|
|
883,179
|
|
|
204,083
|
|
|
Other intangibles
|
39,900
|
|
|
42,305
|
|
|
43,830
|
|
|
44,383
|
|
|
3,674
|
|
|
Accrued interest and other assets
|
532,544
|
|
|
470,770
|
|
|
472,617
|
|
|
508,817
|
|
|
348,978
|
|
|
Total Assets
|
$
|
13,952,551
|
|
|
$
|
13,768,958
|
|
|
$
|
13,822,675
|
|
|
$
|
13,956,360
|
|
|
$
|
8,830,176
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
|
$
|
2,269,948
|
|
|
$
|
2,342,528
|
|
|
$
|
2,334,305
|
|
|
$
|
2,573,150
|
|
|
$
|
1,415,603
|
|
|
Savings
|
3,115,557
|
|
|
3,156,789
|
|
|
3,149,871
|
|
|
3,196,059
|
|
|
2,450,697
|
|
|
Time
|
2,224,587
|
|
|
2,073,752
|
|
|
2,014,936
|
|
|
2,192,196
|
|
|
1,466,440
|
|
|
Total interest-bearing deposits
|
7,610,092
|
|
|
7,573,069
|
|
|
7,499,112
|
|
|
7,961,405
|
|
|
5,332,740
|
|
|
Noninterest-bearing
|
2,457,587
|
|
|
2,476,773
|
|
|
2,388,976
|
|
|
2,421,230
|
|
|
1,570,572
|
|
|
Total deposits
|
10,067,679
|
|
|
10,049,842
|
|
|
9,888,088
|
|
|
10,382,635
|
|
|
6,903,312
|
|
|
Federal funds purchased and securities sold
|
|
|
|
|
|
|
|
|
|
|
under agreements to repurchase
|
103,147
|
|
|
65,805
|
|
|
112,308
|
|
|
97,708
|
|
|
72,865
|
|
|
FHLB short-term borrowings
|
913,974
|
|
|
873,533
|
|
|
1,076,106
|
|
|
818,909
|
|
|
667,641
|
|
|
Total short-term borrowings
|
1,017,121
|
|
|
939,338
|
|
|
1,188,414
|
|
|
916,617
|
|
|
740,506
|
|
|
Long-term debt
|
569,947
|
|
|
570,304
|
|
|
560,001
|
|
|
491,407
|
|
|
126,342
|
|
|
Total borrowed funds
|
1,587,068
|
|
|
1,509,642
|
|
|
1,748,415
|
|
|
1,408,024
|
|
|
866,848
|
|
|
Accrued interest and other liabilities
|
203,570
|
|
|
166,590
|
|
|
164,772
|
|
|
165,608
|
|
|
130,542
|
|
|
Total Liabilities
|
11,858,317
|
|
|
11,726,074
|
|
|
11,801,275
|
|
|
11,956,267
|
|
|
7,900,702
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
1,625,228
|
|
|
1,632,361
|
|
|
1,633,129
|
|
|
1,632,569
|
|
|
572,915
|
|
|
Retained earnings
|
610,737
|
|
|
576,145
|
|
|
542,835
|
|
|
517,548
|
|
|
503,140
|
|
|
Accumulated other comprehensive loss
|
(39,796)
|
|
|
(55,161)
|
|
|
(44,505)
|
|
|
(39,117)
|
|
|
(33,285)
|
|
|
Treasury stock, at cost
|
(101,935)
|
|
|
(110,461)
|
|
|
(110,059)
|
|
|
(110,907)
|
|
|
(113,296)
|
|
|
Total Shareholders' Equity
|
2,094,234
|
|
|
2,042,884
|
|
|
2,021,400
|
|
|
2,000,093
|
|
|
929,474
|
|
|
Total Liabilities and Shareholders' Equity
|
$
|
13,952,551
|
|
|
$
|
13,768,958
|
|
|
$
|
13,822,675
|
|
|
$
|
13,956,360
|
|
|
$
|
8,830,176
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FINANCIAL BANCORP.
|
|
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|
Linked Qtr. Income Variance
|
|
Comparable Qtr. Income Variance
|
|
|
Balance
|
|
Yield
|
|
Balance
|
|
Yield
|
|
Balance
|
|
Yield
|
|
Rate
|
|
Volume
|
|
Total
|
|
Rate
|
|
Volume
|
|
Total
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
3,355,732
|
|
|
3.44
|
%
|
|
$
|
3,204,758
|
|
|
3.30
|
%
|
|
$
|
2,042,781
|
|
|
3.04
|
%
|
|
$
|
1,159
|
|
|
$
|
677
|
|
|
$
|
1,836
|
|
|
$
|
2,018
|
|
|
$
|
11,148
|
|
|
$
|
13,166
|
|
|
Interest-bearing deposits with other banks
|
|
34,709
|
|
|
2.45
|
%
|
|
32,013
|
|
|
2.38
|
%
|
|
27,073
|
|
|
1.60
|
%
|
|
6
|
|
|
12
|
|
|
18
|
|
|
57
|
|
|
46
|
|
|
103
|
|
|
Gross loans (1)
|
|
8,773,310
|
|
|
5.69
|
%
|
|
8,766,302
|
|
|
5.73
|
%
|
|
6,017,994
|
|
|
5.05
|
%
|
|
(890)
|
|
|
(2,634)
|
|
|
(3,524)
|
|
|
9,489
|
|
|
38,647
|
|
|
48,136
|
|
|
Total earning assets
|
|
12,163,751
|
|
|
5.06
|
%
|
|
12,003,073
|
|
|
5.07
|
%
|
|
8,087,848
|
|
|
4.53
|
%
|
|
275
|
|
|
(1,945)
|
|
|
(1,670)
|
|
|
11,564
|
|
|
49,841
|
|
|
61,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
(57,088)
|
|
|
|
|
(58,216)
|
|
|
|
|
(55,016)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
181,695
|
|
|
|
|
213,927
|
|
|
|
|
116,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest and other assets
|
|
1,664,193
|
|
|
|
|
1,610,174
|
|
|
|
|
681,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
13,952,551
|
|
|
|
|
$
|
13,768,958
|
|
|
|
|
$
|
8,830,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
|
|
$
|
2,269,948
|
|
|
0.50
|
%
|
|
$
|
2,342,528
|
|
|
0.48
|
%
|
|
$
|
1,415,603
|
|
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
|
3,115,557
|
|
|
0.76
|
%
|
|
3,156,789
|
|
|
0.66
|
%
|
|
2,450,697
|
|
|
0.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
|
|
2,224,587
|
|
|
1.94
|
%
|
|
2,073,752
|
|
|
1.75
|
%
|
|
1,466,440
|
|
|
1.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits
|
|
7,610,092
|
|
|
1.03
|
%
|
|
7,573,069
|
|
|
0.90
|
%
|
|
5,332,740
|
|
|
0.78
|
%
|
|
$
|
2,377
|
|
|
$
|
(332)
|
|
|
$
|
2,045
|
|
|
$
|
3,186
|
|
|
$
|
5,759
|
|
|
$
|
8,945
|
|
|
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
1,017,121
|
|
|
2.38
|
%
|
|
939,338
|
|
|
2.19
|
%
|
|
740,506
|
|
|
1.46
|
%
|
|
441
|
|
|
333
|
|
|
774
|
|
|
1,676
|
|
|
1,621
|
|
|
3,297
|
|
|
Long-term debt
|
|
569,947
|
|
|
3.59
|
%
|
|
570,304
|
|
|
3.54
|
%
|
|
126,342
|
|
|
5.07
|
%
|
|
70
|
|
|
(115)
|
|
|
(45)
|
|
|
(464)
|
|
|
3,924
|
|
|
3,460
|
|
|
Total borrowed funds
|
|
1,587,068
|
|
|
2.81
|
%
|
|
1,509,642
|
|
|
2.70
|
%
|
|
866,848
|
|
|
1.99
|
%
|
|
511
|
|
|
218
|
|
|
729
|
|
|
1,212
|
|
|
5,545
|
|
|
6,757
|
|
|
Total interest-bearing liabilities
|
|
9,197,160
|
|
|
1.33
|
%
|
|
9,082,711
|
|
|
1.20
|
%
|
|
6,199,588
|
|
|
0.95
|
%
|
|
2,888
|
|
|
(114)
|
|
|
2,774
|
|
|
4,398
|
|
|
11,304
|
|
|
15,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
2,457,587
|
|
|
|
|
2,476,773
|
|
|
|
|
1,570,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
203,570
|
|
|
|
|
166,590
|
|
|
|
|
130,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
2,094,234
|
|
|
|
|
2,042,884
|
|
|
|
|
929,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & shareholders' equity
|
|
$
|
13,952,551
|
|
|
|
|
$
|
13,768,958
|
|
|
|
|
$
|
8,830,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
121,515
|
|
|
|
|
$
|
125,959
|
|
|
|
|
$
|
75,812
|
|
|
|
|
$
|
(2,613)
|
|
|
$
|
(1,831)
|
|
|
$
|
(4,444)
|
|
|
$
|
7,166
|
|
|
$
|
38,537
|
|
|
$
|
45,703
|
|
|
Net interest spread
|
|
|
|
3.73
|
%
|
|
|
|
3.87
|
%
|
|
|
|
3.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
|
4.05
|
%
|
|
|
|
4.16
|
%
|
|
|
|
3.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment
|
|
|
|
0.05
|
%
|
|
|
|
0.05
|
%
|
|
|
|
0.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (fully tax equivalent)
|
|
|
|
4.10
|
%
|
|
|
|
4.21
|
%
|
|
|
|
3.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Loans held for sale and nonaccrual loans are included in gross loans.
|
|
FIRST FINANCIAL BANCORP.
|
|
CREDIT QUALITY
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
56,542
|
|
|
$
|
57,715
|
|
|
$
|
54,076
|
|
|
$
|
54,380
|
|
|
$
|
54,021
|
|
|
Provision for loan and lease losses
|
14,083
|
|
|
5,310
|
|
|
3,238
|
|
|
3,735
|
|
|
2,303
|
|
|
Gross charge-offs
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
12,328
|
|
|
6,060
|
|
|
232
|
|
|
4,356
|
|
|
885
|
|
|
Lease financing
|
100
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Construction real estate
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Commercial real estate
|
1,214
|
|
|
1,679
|
|
|
902
|
|
|
78
|
|
|
2,176
|
|
|
Residential real estate
|
82
|
|
|
80
|
|
|
145
|
|
|
101
|
|
|
96
|
|
|
Home equity
|
468
|
|
|
747
|
|
|
351
|
|
|
385
|
|
|
242
|
|
|
Installment
|
49
|
|
|
158
|
|
|
43
|
|
|
218
|
|
|
16
|
|
|
Credit card
|
341
|
|
|
392
|
|
|
390
|
|
|
684
|
|
|
254
|
|
|
Total gross charge-offs
|
14,582
|
|
|
9,116
|
|
|
2,063
|
|
|
5,822
|
|
|
3,669
|
|
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
240
|
|
|
485
|
|
|
627
|
|
|
518
|
|
|
436
|
|
|
Lease financing
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
Construction real estate
|
63
|
|
|
0
|
|
|
146
|
|
|
0
|
|
|
0
|
|
|
Commercial real estate
|
73
|
|
|
1,681
|
|
|
786
|
|
|
887
|
|
|
752
|
|
|
Residential real estate
|
36
|
|
|
44
|
|
|
71
|
|
|
70
|
|
|
26
|
|
|
Home equity
|
185
|
|
|
274
|
|
|
419
|
|
|
187
|
|
|
429
|
|
|
Installment
|
48
|
|
|
94
|
|
|
351
|
|
|
82
|
|
|
48
|
|
|
Credit card
|
34
|
|
|
55
|
|
|
64
|
|
|
38
|
|
|
34
|
|
|
Total recoveries
|
679
|
|
|
2,633
|
|
|
2,464
|
|
|
1,783
|
|
|
1,725
|
|
|
Total net charge-offs
|
13,903
|
|
|
6,483
|
|
|
(401)
|
|
|
4,039
|
|
|
1,944
|
|
|
Ending allowance for loan and lease losses
|
$
|
56,722
|
|
|
$
|
56,542
|
|
|
$
|
57,715
|
|
|
$
|
54,076
|
|
|
$
|
54,380
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
|
|
|
|
|
|
|
|
Commercial and industrial
|
1.95
|
%
|
|
0.92
|
%
|
|
(0.07)
|
%
|
|
0.64
|
%
|
|
0.10
|
%
|
|
Lease financing
|
0.45
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
Construction real estate
|
(0.05)
|
%
|
|
0.00
|
%
|
|
(0.10)
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
Commercial real estate
|
0.12
|
%
|
|
0.00
|
%
|
|
0.01
|
%
|
|
(0.08)
|
%
|
|
0.23
|
%
|
|
Residential real estate
|
0.02
|
%
|
|
0.02
|
%
|
|
0.03
|
%
|
|
0.01
|
%
|
|
0.06
|
%
|
|
Home equity
|
0.14
|
%
|
|
0.23
|
%
|
|
(0.03)
|
%
|
|
0.10
|
%
|
|
(0.16)
|
%
|
|
Installment
|
0.00
|
%
|
|
0.27
|
%
|
|
(1.22)
|
%
|
|
0.55
|
%
|
|
(0.32)
|
%
|
|
Credit card
|
2.62
|
%
|
|
2.76
|
%
|
|
2.68
|
%
|
|
5.54
|
%
|
|
1.90
|
%
|
|
Total net charge-offs
|
0.64
|
%
|
|
0.29
|
%
|
|
(0.02)
|
%
|
|
0.18
|
%
|
|
0.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
|
|
Nonaccrual loans (1)
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
$
|
19,263
|
|
|
$
|
30,925
|
|
|
$
|
4,310
|
|
|
$
|
3,448
|
|
|
$
|
6,275
|
|
|
Lease financing
|
301
|
|
|
22
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Construction real estate
|
7
|
|
|
9
|
|
|
10
|
|
|
24
|
|
|
26
|
|
|
Commercial real estate
|
21,082
|
|
|
20,500
|
|
|
20,338
|
|
|
21,593
|
|
|
16,878
|
|
|
Residential real estate
|
13,052
|
|
|
13,495
|
|
|
11,365
|
|
|
9,278
|
|
|
3,324
|
|
|
Home equity
|
5,581
|
|
|
5,580
|
|
|
6,018
|
|
|
5,820
|
|
|
3,484
|
|
|
Installment
|
170
|
|
|
169
|
|
|
327
|
|
|
299
|
|
|
296
|
|
|
Nonaccrual loans
|
59,456
|
|
|
70,700
|
|
|
42,368
|
|
|
40,462
|
|
|
30,283
|
|
|
Accruing troubled debt restructurings (TDRs)
|
22,817
|
|
|
16,109
|
|
|
20,313
|
|
|
21,839
|
|
|
14,943
|
|
|
Total nonperforming loans
|
82,273
|
|
|
86,809
|
|
|
62,681
|
|
|
62,301
|
|
|
45,226
|
|
|
Other real estate owned (OREO)
|
1,665
|
|
|
1,401
|
|
|
1,918
|
|
|
1,853
|
|
|
1,065
|
|
|
Total nonperforming assets
|
83,938
|
|
|
88,210
|
|
|
64,599
|
|
|
64,154
|
|
|
46,291
|
|
|
Accruing loans past due 90 days or more
|
178
|
|
|
63
|
|
|
144
|
|
|
327
|
|
|
529
|
|
|
Total underperforming assets
|
$
|
84,116
|
|
|
$
|
88,273
|
|
|
$
|
64,743
|
|
|
$
|
64,481
|
|
|
$
|
46,820
|
|
|
Total classified assets
|
$
|
142,014
|
|
|
$
|
131,668
|
|
|
$
|
138,868
|
|
|
$
|
139,317
|
|
|
$
|
87,577
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY RATIOS
|
|
|
|
|
|
|
|
Allowance for loan and lease losses to
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
95.40
|
%
|
|
79.97
|
%
|
|
136.22
|
%
|
|
133.65
|
%
|
|
179.57
|
%
|
|
Nonperforming loans
|
68.94
|
%
|
|
65.13
|
%
|
|
92.08
|
%
|
|
86.80
|
%
|
|
120.24
|
%
|
|
Total ending loans
|
0.64
|
%
|
|
0.64
|
%
|
|
0.65
|
%
|
|
0.61
|
%
|
|
0.89
|
%
|
|
Nonperforming loans to total loans
|
0.93
|
%
|
|
0.98
|
%
|
|
0.71
|
%
|
|
0.70
|
%
|
|
0.74
|
%
|
|
Nonperforming assets to
|
|
|
|
|
|
|
|
|
|
|
Ending loans, plus OREO
|
0.95
|
%
|
|
1.00
|
%
|
|
0.73
|
%
|
|
0.72
|
%
|
|
0.76
|
%
|
|
Total assets
|
0.60
|
%
|
|
0.63
|
%
|
|
0.47
|
%
|
|
0.46
|
%
|
|
0.52
|
%
|
|
Nonperforming assets, excluding accruing TDRs to
|
|
|
|
|
|
|
|
|
|
|
Ending loans, plus OREO
|
0.69
|
%
|
|
0.82
|
%
|
|
0.50
|
%
|
|
0.48
|
%
|
|
0.51
|
%
|
|
Total assets
|
0.43
|
%
|
|
0.52
|
%
|
|
0.32
|
%
|
|
0.30
|
%
|
|
0.35
|
%
|
|
Classified assets to total assets
|
1.01
|
%
|
|
0.94
|
%
|
|
1.00
|
%
|
|
1.00
|
%
|
|
0.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Nonaccrual loans include nonaccrual TDRs of $13.1 million, $22.4 million, $4.7 million, $5.9 million, and $6.0 million, as of March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.
|
|
|
FIRST FINANCIAL BANCORP.
|
|
CAPITAL ADEQUACY
|
|
(Dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
Market Price
|
|
|
|
|
|
|
|
|
|
|
High
|
$
|
28.56
|
|
|
$
|
29.58
|
|
|
$
|
32.35
|
|
|
$
|
33.55
|
|
|
$
|
29.35
|
|
|
Low
|
$
|
23.02
|
|
|
$
|
22.40
|
|
|
$
|
29.40
|
|
|
$
|
28.10
|
|
|
$
|
26.40
|
|
|
Close
|
$
|
24.06
|
|
|
$
|
23.72
|
|
|
$
|
29.70
|
|
|
$
|
30.65
|
|
|
$
|
29.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - basic
|
97,926,088
|
|
|
97,424,839
|
|
|
97,411,201
|
|
|
97,347,533
|
|
|
61,654,686
|
|
|
Average shares outstanding - diluted
|
98,436,311
|
|
|
98,468,237
|
|
|
98,484,228
|
|
|
98,432,072
|
|
|
62,180,744
|
|
|
Ending shares outstanding
|
98,613,872
|
|
|
97,894,286
|
|
|
97,914,526
|
|
|
97,904,897
|
|
|
62,213,823
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
$
|
2,130,419
|
|
|
$
|
2,078,249
|
|
|
$
|
2,035,520
|
|
|
$
|
2,012,937
|
|
|
$
|
939,985
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL
|
Preliminary
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital
|
$
|
1,246,004
|
|
|
$
|
1,215,613
|
|
|
$
|
1,177,630
|
|
|
$
|
1,142,718
|
|
|
$
|
779,491
|
|
|
Common equity tier 1 capital ratio
|
12.03
|
%
|
|
11.87
|
%
|
|
11.52
|
%
|
|
11.15
|
%
|
|
10.77
|
%
|
|
Tier 1 capital
|
$
|
1,287,757
|
|
|
$
|
1,257,366
|
|
|
$
|
1,219,383
|
|
|
$
|
1,184,471
|
|
|
$
|
779,595
|
|
|
Tier 1 ratio
|
12.43
|
%
|
|
12.28
|
%
|
|
11.93
|
%
|
|
11.55
|
%
|
|
10.77
|
%
|
|
Total capital
|
$
|
1,474,723
|
|
|
$
|
1,444,146
|
|
|
$
|
1,407,252
|
|
|
$
|
1,369,231
|
|
|
$
|
953,243
|
|
|
Total capital ratio
|
14.24
|
%
|
|
14.10
|
%
|
|
13.77
|
%
|
|
13.36
|
%
|
|
13.17
|
%
|
|
Total capital in excess of minimum
|
|
|
|
|
|
|
|
|
|
|
requirement
|
$
|
387,048
|
|
|
$
|
432,832
|
|
|
$
|
397,783
|
|
|
$
|
356,930
|
|
|
$
|
238,221
|
|
|
Total risk-weighted assets
|
$
|
10,358,805
|
|
|
$
|
10,241,159
|
|
|
$
|
10,222,466
|
|
|
$
|
10,251,147
|
|
|
$
|
7,240,731
|
|
|
Leverage ratio
|
9.84
|
%
|
|
9.71
|
%
|
|
9.41
|
%
|
|
9.06
|
%
|
|
9.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
OTHER CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
Ending shareholders' equity to ending assets
|
15.14
|
%
|
|
14.86
|
%
|
|
14.70
|
%
|
|
14.46
|
%
|
|
10.56
|
%
|
|
Ending tangible shareholders' equity to ending tangible assets
|
9.15
|
%
|
|
8.79
|
%
|
|
8.53
|
%
|
|
8.30
|
%
|
|
8.41
|
%
|
|
Average shareholders' equity to average assets
|
15.01
|
%
|
|
14.84
|
%
|
|
14.62
|
%
|
|
14.33
|
%
|
|
10.53
|
%
|
|
Average tangible shareholders' equity to average tangible assets
|
8.95
|
%
|
|
8.66
|
%
|
|
8.42
|
%
|
|
8.16
|
%
|
|
8.35
|
%
|
View original content:http://www.prnewswire.com/news-releases/first-financial-bancorp-announces-first-quarter-2019-results-300838637.html
SOURCE First Financial Bancorp.
