First Financial Bancorp Announces Second Quarter 2021 Financial Results
07/22/2021 - 04:15 PM
CINCINNATI , July 22, 2021 /PRNewswire/ --
Earnings per diluted share of $0.52 $0.58 (1) basis Return on average assets of 1.26% ; 1.39% as adjusted(1) Net interest margin FTE(1) of 3.31% Provision recapture of $4.2 million Repurchased 1,308,945 shares during the quarter First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30 , 2021.
For the three months ended June 30, 2021, the Company reported net income of $50.9 million $0.52 $47.3 million $0.48 $37.4 million $0.38 June 30, 2021 , First Financial had earnings per diluted common share of $1.01 $0.67
Return on average assets for the second quarter of 2021 was 1.26% while return on average tangible common equity was 16.31% (1) . These compare to returns on average assets of 1.20% and 0.96% , and returns on average tangible common equity of 15.24% (1) and 12.90% (1) , in the first quarter of 2021 and the second quarter of 2020, respectively.
Second quarter 2021 highlights include:
After adjustments(1) for certain nonrecurring items: Net income of $0.58 1.39% return on average assets 18.03% return on average tangible common equityNet interest margin of 3.31% on a fully tax-equivalent basis(1) in line with expectations 9 basis point reduction from linked quarter driven by lower yields on earning assets and additional days during the second quarter Noninterest income of $43.0 million $43.1 million (1) Record foreign exchange income of $12.0 million $1.3 million 11.9% , compared to linked quarter Record wealth management fees of $6.2 million $0.6 million 10.4% , compared to the linked quarter Noninterest expenses of $99.6 million $91.8 million (1) Adjustments(1) include: $3.8 million $2.8 million $1.2 million Efficiency ratio of 63.5% ; 58.4% as adjusted(1) Loan balances declined during the quarter driven by $288.8 million (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.
Average transactional deposit balances grew $469.6 million 17.8% on an annualized basis Total Allowance for Credit Losses of $173.1 million $4.2 million Loans and leases - ACL of $159.6 million 1.68% of total loans; 1.75% of loans excluding PPP Unfunded Commitments - ACL of $13.6 million Provision recapture driven by improvements in economic conditions and classified asset balances, coupled with lower net charge-offs Strong capital ratios Total capital of 15.31% Tier 1 common equity of 11.78% Tangible common equity of 8.37% (1) ; 8.61% (1) excluding PPP loans Tangible book value per share of $13.08 (1) ; $0.30 Repurchased 1,308,945 shares during second quarter; 2,149,060 shares repurchased in 2021 Archie Brown , President and Chief Executive Officer, commented, "We are very pleased to announce second quarter results that are highlighted by robust earnings, higher fee income, lower credit costs and improving credit trends."
Mr. Brown continued, "Our core quarterly financial metrics reflected the strong quarter with an adjusted(1) earnings per share of $0.58 (1) return on assets of 1.39% , and an adjusted(1) efficiency ratio of 58.4% . The quarterly performance was bolstered by higher fee revenue in interchange, and record revenue in Wealth Management and Bannockburn. Additionally, provision recapture during the period positively impacted our results, driven by improved credit quality trends, which included declines in net charge-offs and classified asset balances. We are optimistic about the economic environment and expect further reductions in credit costs in the coming periods."
Mr. Brown added, "We were pleased with a 23% increase in loan originations for the quarter, driven primarily by our core commercial markets, in addition to consumer and mortgage banking. Loan payoffs accelerated during the quarter in almost all commercial banking areas, with larger payoff amounts in Commercial Finance and ICRE driving an overall reduction in core loan balances for the quarter. Given the state of our loan pipeline, we expect originations to remain strong in the second half of the year, however we also anticipate higher payoffs to continue due to the amount of liquidity in the market. Average transactional deposits increased 18% on an annualized basis, as clients continued to build liquidity from recent government stimulus actions, however we believe these balances may have peaked as we began to experience some outflows late in the quarter. Our capital ratios remained strong and in excess of both internal and external targets. We also remained active in our share buyback program, repurchasing over 1 million shares during the quarter. When combined with the common dividend, the share repurchases approximate a return to shareholders of 98% of adjusted(1) quarterly earnings. We anticipate further share buyback activity in the third quarter, absent higher priority capital deployment alternatives."
Mr. Brown concluded, "Throughout the summer, the number of associates working in our offices has increased steadily in anticipation of a broader return, and we are very much looking forward to welcoming all of our associates back in the beginning of August. We have learned a great deal from the remote environment during the last 16 months and are excited to incorporate the best practices derived from that experience into our culture moving forward, including greater associate flexibility."
Full detail of the Company's second quarter 2021 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, July 23, 2021 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 Canada toll free) and +1 (412) 317-0088 (International); conference number 10158382. 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:
economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; Management's ability to effectively execute its business plans; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period; the effect of changes in accounting policies and practices; changes in consumer spending, borrowing and saving and changes in unemployment; changes in customers' performance and creditworthiness; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and our ability to develop and execute effective business plans and strategies. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2020 , 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 June 30, 2021, the Company had $16.0 billion $9.5 billion $12.5 billion $2.3 billion $3.2 billion Ohio , Indiana , Kentucky and Illinois , while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Six months ended,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
2021
2021
2020
2020
2020
2021
2020
RESULTS OF OPERATIONS
Net income
$
50,888
$
47,315
$
48,312
$
41,477
$
37,393
$
98,203
$
66,021
Net earnings per share - basic
$
0.53
$
0.49
$
0.50
$
0.43
$
0.38
$
1.02
$
0.68
Net earnings per share - diluted
$
0.52
$
0.48
$
0.49
$
0.42
$
0.38
$
1.01
$
0.67
Dividends declared per share
$
0.23
$
0.23
$
0.23
$
0.23
$
0.23
$
0.46
$
0.46
KEY FINANCIAL RATIOS
Return on average assets
1.26
%
1.20
%
1.20
%
1.04
%
0.96
%
1.23
%
0.88
%
Return on average shareholders' equity
9.02
%
8.44
%
8.52
%
7.40
%
6.88
%
8.73
%
6.04
%
Return on average tangible shareholders' equity (1)
16.31
%
15.24
%
15.50
%
13.61
%
12.90
%
15.78
%
11.29
%
Net interest margin
3.27
%
3.35
%
3.45
%
3.32
%
3.38
%
3.31
%
3.54
%
Net interest margin (fully tax equivalent) (1)(2)
3.31
%
3.40
%
3.49
%
3.36
%
3.44
%
3.35
%
3.60
%
Ending shareholders' equity as a percent of ending assets
14.15
%
13.97
%
14.29
%
14.11
%
13.99
%
14.15
%
13.99
%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
8.37
%
8.22
%
8.47
%
8.25
%
8.09
%
8.37
%
8.09
%
Risk-weighted assets (1)
11.12
%
11.02
%
11.29
%
11.07
%
10.89
%
11.12
%
10.89
%
Average shareholders' equity as a percent of average assets
13.96
%
14.17
%
14.07
%
14.08
%
13.91
%
14.06
%
14.54
%
Average tangible shareholders' equity as a percent of
average tangible assets (1)
8.23
%
8.38
%
8.26
%
8.18
%
7.94
%
8.30
%
8.34
%
Book value per share
$
23.59
$
23.16
$
23.28
$
22.94
$
22.66
$
23.59
$
22.66
Tangible book value per share (1)
$
13.08
$
12.78
$
12.93
$
12.56
$
12.26
$
13.08
$
12.26
Common equity tier 1 ratio (3)
11.78
%
11.81
%
11.82
%
11.63
%
11.49
%
11.78
%
11.49
%
Tier 1 ratio (3)
12.16
%
12.19
%
12.20
%
12.02
%
11.87
%
12.16
%
11.87
%
Total capital ratio (3)
15.31
%
15.41
%
15.55
%
15.37
%
15.19
%
15.31
%
15.19
%
Leverage ratio (3)
9.14
%
9.34
%
9.55
%
9.55
%
8.98
%
9.14
%
8.98
%
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$
9,831,965
$
9,951,855
$
10,127,881
$
10,253,392
$
10,002,379
$
9,891,579
$
9,611,511
Investment securities
4,130,207
3,782,993
3,403,839
3,162,832
3,164,243
3,957,559
3,139,983
Interest-bearing deposits with other banks
45,593
46,912
143,884
40,277
91,990
46,249
65,661
Total earning assets
$
14,007,765
$
13,781,760
$
13,675,604
$
13,456,501
$
13,258,612
$
13,895,387
$
12,817,155
Total assets
$
16,215,469
$
16,042,654
$
16,030,986
$
15,842,010
$
15,710,204
$
16,129,539
$
15,117,313
Noninterest-bearing deposits
$
4,003,626
$
3,840,046
$
3,720,417
$
3,535,432
$
3,335,866
$
3,922,288
$
2,989,553
Interest-bearing deposits
8,707,553
8,531,822
8,204,306
8,027,082
8,395,229
8,620,173
7,993,010
Total deposits
$
12,711,179
$
12,371,868
$
11,924,723
$
11,562,514
$
11,731,095
$
12,542,461
$
10,982,563
Borrowings
$
749,114
$
886,379
$
1,307,461
$
1,519,748
$
1,272,819
$
817,367
$
1,504,293
Shareholders' equity
$
2,263,687
$
2,272,749
$
2,256,062
$
2,230,422
$
2,185,865
$
2,268,193
$
2,197,799
CREDIT QUALITY RATIOS
Allowance to ending loans
1.68
%
1.71
%
1.77
%
1.65
%
1.56
%
1.68
%
1.56
%
Allowance to nonaccrual loans
184.77
%
199.33
%
217.55
%
216.28
%
233.74
%
184.77
%
233.74
%
Allowance to nonperforming loans
162.12
%
175.44
%
199.97
%
196.69
%
208.06
%
162.12
%
208.06
%
Nonperforming loans to total loans
1.03
%
0.97
%
0.89
%
0.84
%
0.75
%
1.03
%
0.75
%
Nonperforming assets to ending loans, plus OREO
1.04
%
0.98
%
0.90
%
0.86
%
0.77
%
1.04
%
0.77
%
Nonperforming assets to total assets
0.62
%
0.60
%
0.56
%
0.55
%
0.49
%
0.62
%
0.49
%
Classified assets to total assets
1.14
%
1.22
%
0.89
%
0.84
%
0.79
%
1.14
%
0.79
%
Net charge-offs to average loans (annualized)
0.23
%
0.38
%
0.26
%
0.21
%
0.12
%
0.30
%
0.05
%
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(3) June 30, 2021 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended,
Six months ended,
June 30,
June 30,
2021
2020
% Change
2021
2020
% Change
Interest income
Loans and leases, including fees
$
97,494
$
105,900
(7.9)
%
$
196,425
$
221,675
(11.4)
%
Investment securities
Taxable
19,524
18,476
5.7
%
38,131
37,481
1.7
%
Tax-exempt
4,871
4,937
(1.3)
%
9,914
9,519
4.1
%
Total investment securities interest
24,395
23,413
4.2
%
48,045
47,000
2.2
%
Other earning assets
25
47
(46.8)
%
53
189
(72.0)
%
Total interest income
121,914
129,360
(5.8)
%
244,523
268,864
(9.1)
%
Interest expense
Deposits
3,693
11,751
(68.6)
%
8,026
28,116
(71.5)
%
Short-term borrowings
53
1,274
(95.8)
%
120
6,361
(98.1)
%
Long-term borrowings
4,142
4,759
(13.0)
%
8,475
8,529
(0.6)
%
Total interest expense
7,888
17,784
(55.6)
%
16,621
43,006
(61.4)
%
Net interest income
114,026
111,576
2.2
%
227,902
225,858
0.9
%
Provision for credit losses-loans and leases
(4,756)
17,859
(126.6)
%
(1,306)
41,739
(103.1)
%
Provision for credit losses-unfunded commitments
517
2,370
(78.2)
%
1,055
3,938
(73.2)
%
Net interest income after provision for credit losses
118,265
91,347
29.5
%
228,153
180,181
26.6
%
Noninterest income
Service charges on deposit accounts
7,537
6,001
25.6
%
14,683
14,436
1.7
%
Trust and wealth management fees
6,216
5,254
18.3
%
11,846
10,951
8.2
%
Bankcard income
3,732
2,844
31.2
%
6,860
5,542
23.8
%
Client derivative fees
1,795
2,984
(39.8)
%
3,351
6,089
(45.0)
%
Foreign exchange income
12,037
6,576
83.0
%
22,794
16,542
37.8
%
Net gains from sales of loans
8,489
16,662
(49.1)
%
17,943
19,493
(8.0)
%
Net gains (losses) on sale of investment securities
(265)
2
N/M
(431)
(57)
N/M
Unrealized gain (loss) on equity securities
161
150
7.3
%
273
52
N/M
Other
3,285
2,252
45.9
%
5,990
5,061
18.4
%
Total noninterest income
42,987
42,725
0.6
%
83,309
78,109
6.7
%
Noninterest expenses
Salaries and employee benefits
60,784
55,925
8.7
%
122,037
110,747
10.2
%
Net occupancy
5,535
5,378
2.9
%
11,239
11,482
(2.1)
%
Furniture and equipment
3,371
3,681
(8.4)
%
7,340
7,734
(5.1)
%
Data processing
7,864
7,019
12.0
%
15,151
13,408
13.0
%
Marketing
2,035
1,339
52.0
%
3,396
2,559
32.7
%
Communication
746
907
(17.8)
%
1,584
1,797
(11.9)
%
Professional services
2,029
2,205
(8.0)
%
3,479
4,480
(22.3)
%
State intangible tax
1,201
1,514
(20.7)
%
2,403
3,030
(20.7)
%
FDIC assessments
1,362
1,290
5.6
%
2,711
2,695
0.6
%
Intangible amortization
2,480
2,791
(11.1)
%
4,959
5,583
(11.2)
%
Other
12,236
6,640
84.3
%
17,850
14,840
20.3
%
Total noninterest expenses
99,643
88,689
12.4
%
192,149
178,355
7.7
%
Income before income taxes
61,609
45,383
35.8
%
119,313
79,935
49.3
%
Income tax expense
10,721
7,990
34.2
%
21,110
13,914
51.7
%
Net income
$
50,888
$
37,393
36.1
%
$
98,203
$
66,021
48.7
%
ADDITIONAL DATA
Net earnings per share - basic
$
0.53
$
0.38
$
1.02
$
0.68
Net earnings per share - diluted
$
0.52
$
0.38
$
1.01
$
0.67
Dividends declared per share
$
0.23
$
0.23
$
0.46
$
0.46
Return on average assets
1.26
%
0.96
%
1.23
%
0.88
%
Return on average shareholders' equity
9.02
%
6.88
%
8.73
%
6.04
%
Interest income
$
121,914
$
129,360
(5.8)
%
$
244,523
$
268,864
(9.1)
%
Tax equivalent adjustment
1,619
1,664
(2.7)
%
3,271
3,288
(0.5)
%
Interest income - tax equivalent
123,533
131,024
(5.7)
%
247,794
272,152
(9.0)
%
Interest expense
7,888
17,784
(55.6)
%
16,621
43,006
(61.4)
%
Net interest income - tax equivalent
$
115,645
$
113,240
2.1
%
$
231,173
$
229,146
0.9
%
Net interest margin
3.27
%
3.38
%
3.31
%
3.54
%
Net interest margin (fully tax equivalent) (1)
3.31
%
3.44
%
3.35
%
3.60
%
Full-time equivalent employees
2,053
2,076
(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
Second
First
Year to
% Change
Quarter
Quarter
Date
Linked Qtr.
Interest income
Loans and leases, including fees
$
97,494
$
98,931
$
196,425
(1.5)
%
Investment securities
Taxable
19,524
18,607
38,131
4.9
%
Tax-exempt
4,871
5,043
9,914
(3.4)
%
Total investment securities interest
24,395
23,650
48,045
3.2
%
Other earning assets
25
28
53
(10.7)
%
Total interest income
121,914
122,609
244,523
(0.6)
%
Interest expense
Deposits
3,693
4,333
8,026
(14.8)
%
Short-term borrowings
53
67
120
(20.9)
%
Long-term borrowings
4,142
4,333
8,475
(4.4)
%
Total interest expense
7,888
8,733
16,621
(9.7)
%
Net interest income
114,026
113,876
227,902
0.1
%
Provision for credit losses-loans and leases
(4,756)
3,450
(1,306)
(237.9)
%
Provision for credit losses-unfunded commitments
517
538
1,055
(3.9)
%
Net interest income after provision for credit losses
118,265
109,888
228,153
7.6
%
Noninterest income
Service charges on deposit accounts
7,537
7,146
14,683
5.5
%
Trust and wealth management fees
6,216
5,630
11,846
10.4
%
Bankcard income
3,732
3,128
6,860
19.3
%
Client derivative fees
1,795
1,556
3,351
15.4
%
Foreign exchange income
12,037
10,757
22,794
11.9
%
Net gains from sales of loans
8,489
9,454
17,943
(10.2)
%
Net gains (losses) on sale of investment securities
(265)
(166)
(431)
59.6
%
Unrealized gain (loss) on equity securities
161
112
273
43.8
%
Other
3,285
2,705
5,990
21.4
%
Total noninterest income
42,987
40,322
83,309
6.6
%
Noninterest expenses
Salaries and employee benefits
60,784
61,253
122,037
(0.8)
%
Net occupancy
5,535
5,704
11,239
(3.0)
%
Furniture and equipment
3,371
3,969
7,340
(15.1)
%
Data processing
7,864
7,287
15,151
7.9
%
Marketing
2,035
1,361
3,396
49.5
%
Communication
746
838
1,584
(11.0)
%
Professional services
2,029
1,450
3,479
39.9
%
State intangible tax
1,201
1,202
2,403
(0.1)
%
FDIC assessments
1,362
1,349
2,711
1.0
%
Intangible amortization
2,480
2,479
4,959
0.0
%
Other
12,236
5,614
17,850
118.0
%
Total noninterest expenses
99,643
92,506
192,149
7.7
%
Income before income taxes
61,609
57,704
119,313
6.8
%
Income tax expense
10,721
10,389
21,110
3.2
%
Net income
$
50,888
$
47,315
$
98,203
7.6
%
ADDITIONAL DATA
Net earnings per share - basic
$
0.53
$
0.49
$
1.02
Net earnings per share - diluted
$
0.52
$
0.48
$
1.01
Dividends declared per share
$
0.23
$
0.23
$
0.46
Return on average assets
1.26
%
1.20
%
1.23
%
Return on average shareholders' equity
9.02
%
8.44
%
8.73
%
Interest income
$
121,914
$
122,609
$
244,523
(0.6)
%
Tax equivalent adjustment
1,619
1,652
3,271
(2.0)
%
Interest income - tax equivalent
123,533
124,261
247,794
(0.6)
%
Interest expense
7,888
8,733
16,621
(9.7)
%
Net interest income - tax equivalent
$
115,645
$
115,528
$
231,173
0.1
%
Net interest margin
3.27
%
3.35
%
3.31
%
Net interest margin (fully tax equivalent) (1)
3.31
%
3.40
%
3.35
%
Full-time equivalent employees
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 gains (losses) on sale of investment securities
4,618
2
2
(59)
4,563
Unrealized 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)
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
% Change
% Change
2021
2021
2020
2020
2020
Linked Qtr.
Comp Qtr.
ASSETS
Cash and due from banks
$
206,918
$
210,191
$
231,054
$
207,128
$
283,639
(1.6)
%
(27.0)
%
Interest-bearing deposits with other banks
38,610
19,180
20,305
38,806
38,845
101.3
%
(0.6)
%
Investment securities available-for-sale
3,955,839
3,753,763
3,424,580
3,004,963
2,897,413
5.4
%
36.5
%
Investment securities held-to-maturity
112,456
121,945
131,687
118,072
127,347
(7.8)
%
(11.7)
%
Other investments
129,432
131,814
133,198
118,292
132,366
(1.8)
%
(2.2)
%
Loans held for sale
31,546
34,590
41,103
69,008
43,950
(8.8)
%
(28.2)
%
Loans and leases
Commercial and industrial
2,701,203
3,044,825
3,007,509
3,292,313
3,322,374
(11.3)
%
(18.7)
%
Lease financing
68,229
66,574
72,987
74,742
80,087
2.5
%
(14.8)
%
Construction real estate
630,329
642,709
636,096
575,648
506,085
(1.9)
%
24.6
%
Commercial real estate
4,332,561
4,396,582
4,307,858
4,347,125
4,343,702
(1.5)
%
(0.3)
%
Residential real estate
932,112
946,522
1,003,086
1,027,702
1,043,745
(1.5)
%
(10.7)
%
Home equity
711,756
709,667
743,099
754,743
764,171
0.3
%
(6.9)
%
Installment
89,143
82,421
81,850
84,629
79,150
8.2
%
12.6
%
Credit card
46,177
44,669
48,485
43,907
42,397
3.4
%
8.9
%
Total loans
9,511,510
9,933,969
9,900,970
10,200,809
10,181,711
(4.3)
%
(6.6)
%
Less:
Allowance for credit losses
159,590
169,923
175,679
168,544
158,661
(6.1)
%
0.6
%
Net loans
9,351,920
9,764,046
9,725,291
10,032,265
10,023,050
(4.2)
%
(6.7)
%
Premises and equipment
192,238
204,537
207,211
209,474
211,164
(6.0)
%
(9.0)
%
Goodwill
937,771
937,771
937,771
937,771
937,771
0.0
%
0.0
%
Other intangibles
59,391
61,984
64,552
67,419
70,325
(4.2)
%
(15.5)
%
Accrued interest and other assets
1,021,798
935,250
1,056,382
1,122,449
1,105,020
9.3
%
(7.5)
%
Total Assets
$
16,037,919
$
16,175,071
$
15,973,134
$
15,925,647
$
15,870,890
(0.8)
%
1.1
%
LIABILITIES
Deposits
Interest-bearing demand
$
2,963,151
$
2,914,761
$
2,914,787
$
2,632,467
$
2,657,841
1.7
%
11.5
%
Savings
4,093,229
4,006,181
3,680,774
3,446,678
3,287,314
2.2
%
24.5
%
Time
1,548,109
1,731,757
1,872,733
1,935,392
2,241,212
(10.6)
%
(30.9)
%
Total interest-bearing deposits
8,604,489
8,652,699
8,468,294
8,014,537
8,186,367
(0.6)
%
5.1
%
Noninterest-bearing
3,901,691
3,995,370
3,763,709
3,552,893
3,515,048
(2.3)
%
11.0
%
Total deposits
12,506,180
12,648,069
12,232,003
11,567,430
11,701,415
(1.1)
%
6.9
%
Federal funds purchased and securities sold
under agreements to repurchase
255,791
181,387
166,594
247,658
154,347
41.0
%
65.7
%
FHLB short-term borrowings
217,000
0
0
0
0
100.0
%
100.0
%
Total short-term borrowings
472,791
181,387
166,594
247,658
154,347
160.7
%
206.3
%
Long-term debt
313,039
583,722
776,202
1,341,164
1,285,767
(46.4)
%
(75.7)
%
Total borrowed funds
785,830
765,109
942,796
1,588,822
1,440,114
2.7
%
(45.4)
%
Accrued interest and other liabilities
476,402
502,951
516,265
521,580
508,342
(5.3)
%
(6.3)
%
Total Liabilities
13,768,412
13,916,129
13,691,064
13,677,832
13,649,871
(1.1)
%
0.9
%
SHAREHOLDERS' EQUITY
Common stock
1,635,470
1,633,137
1,638,947
1,637,489
1,635,070
0.1
%
0.0
%
Retained earnings
773,857
745,220
720,429
694,484
675,532
3.8
%
14.6
%
Accumulated other comprehensive income (loss)
30,735
18,101
48,664
42,266
36,431
69.8
%
(15.6)
%
Treasury stock, at cost
(170,555)
(137,516)
(125,970)
(126,424)
(126,014)
24.0
%
35.3
%
Total Shareholders' Equity
2,269,507
2,258,942
2,282,070
2,247,815
2,221,019
0.5
%
2.2
%
Total Liabilities and Shareholders' Equity
$
16,037,919
$
16,175,071
$
15,973,134
$
15,925,647
$
15,870,890
(0.8)
%
1.1
%
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Year-to-Date Averages
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
2021
2021
2020
2020
2020
2021
2020
ASSETS
Cash and due from banks
$
237,964
$
232,275
$
228,427
$
233,216
$
284,726
$
235,135
$
260,211
Interest-bearing deposits with other banks
45,593
46,912
143,884
40,277
91,990
46,249
65,661
Investment securities
4,130,207
3,782,993
3,403,839
3,162,832
3,164,243
3,957,559
3,139,983
Loans held for sale
28,348
29,689
42,402
45,186
36,592
29,015
24,883
Loans and leases
Commercial and industrial
2,953,185
3,029,716
3,182,749
3,299,259
3,058,677
2,991,239
2,754,785
Lease financing
66,124
70,508
74,107
78,500
81,218
68,304
83,500
Construction real estate
630,351
647,655
608,401
536,870
495,407
638,955
498,439
Commercial real estate
4,372,679
4,339,349
4,313,408
4,364,708
4,381,647
4,356,106
4,295,496
Residential real estate
940,600
980,718
1,022,701
1,041,250
1,052,996
960,548
1,054,226
Home equity
707,409
726,134
752,425
759,994
772,424
716,720
772,753
Installment
84,768
81,377
83,509
82,016
79,016
83,082
80,125
Credit card
48,501
46,709
48,179
45,609
44,402
47,610
47,304
Total loans
9,803,617
9,922,166
10,085,479
10,208,206
9,965,787
9,862,564
9,586,628
Less:
Allowance for credit losses
169,979
177,863
172,201
165,270
155,454
173,899
138,290
Net loans
9,633,638
9,744,303
9,913,278
10,042,936
9,810,333
9,688,665
9,448,338
Premises and equipment
200,558
206,628
208,800
211,454
213,903
203,576
214,724
Goodwill
937,771
937,771
937,771
937,771
937,771
937,771
937,771
Other intangibles
60,929
63,529
66,195
69,169
72,086
62,222
73,550
Accrued interest and other assets
940,461
998,554
1,086,390
1,099,169
1,098,560
969,347
952,192
Total Assets
$
16,215,469
$
16,042,654
$
16,030,986
$
15,842,010
$
15,710,204
$
16,129,539
$
15,117,313
LIABILITIES
Deposits
Interest-bearing demand
$
2,973,930
$
2,948,682
$
2,812,748
$
2,668,635
$
2,602,917
$
2,961,376
$
2,510,555
Savings
4,096,077
3,815,314
3,547,179
3,342,514
3,173,274
3,956,471
3,074,896
Time
1,637,546
1,767,826
1,844,379
2,015,933
2,619,038
1,702,326
2,407,559
Total interest-bearing deposits
8,707,553
8,531,822
8,204,306
8,027,082
8,395,229
8,620,173
7,993,010
Noninterest-bearing
4,003,626
3,840,046
3,720,417
3,535,432
3,335,866
3,922,288
2,989,553
Total deposits
12,711,179
12,371,868
11,924,723
11,562,514
11,731,095
12,542,461
10,982,563
Federal funds purchased and securities sold
under agreements to repurchase
194,478
184,483
136,795
150,088
145,291
189,508
154,692
FHLB short-term borrowings
40,846
67,222
7,937
30,868
548,183
53,961
868,974
Total short-term borrowings
235,324
251,705
144,732
180,956
693,474
243,469
1,023,666
Long-term debt
513,790
634,674
1,162,729
1,338,792
579,345
573,898
480,627
Total borrowed funds
749,114
886,379
1,307,461
1,519,748
1,272,819
817,367
1,504,293
Accrued interest and other liabilities
491,489
511,658
542,740
529,326
520,425
501,518
432,658
Total Liabilities
13,951,782
13,769,905
13,774,924
13,611,588
13,524,339
13,861,346
12,919,514
SHAREHOLDERS' EQUITY
Common stock
1,633,950
1,636,884
1,638,032
1,636,107
1,634,405
1,635,409
1,636,628
Retained earnings
754,456
726,351
703,257
679,980
658,312
740,481
659,210
Accumulated other comprehensive loss
25,832
42,253
40,960
40,697
19,888
33,997
25,544
Treasury stock, at cost
(150,551)
(132,739)
(126,187)
(126,362)
(126,740)
(141,694)
(123,583)
Total Shareholders' Equity
2,263,687
2,272,749
2,256,062
2,230,422
2,185,865
2,268,193
2,197,799
Total Liabilities and Shareholders' Equity
$
16,215,469
$
16,042,654
$
16,030,986
$
15,842,010
$
15,710,204
$
16,129,539
$
15,117,313
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Year-to-Date Averages
June 30, 2021
March 31, 2021
June 30, 2020
June 30, 2021
June 30, 2020
Balance
Yield
Balance
Yield
Balance
Yield
Balance
Yield
Balance
Yield
Earning assets
Investments:
Investment securities
$
4,130,207
2.37
%
$
3,782,993
2.54
%
$
3,164,243
2.97
%
$
3,957,559
2.45
%
$
3,139,983
3.02
%
Interest-bearing deposits with other banks
45,593
0.22
%
46,912
0.24
%
91,990
0.20
%
46,249
0.23
%
65,661
0.58
%
Gross loans (1)
9,831,965
3.98
%
9,951,855
4.03
%
10,002,379
4.25
%
9,891,579
4.00
%
9,611,511
4.65
%
Total earning assets
14,007,765
3.49
%
13,781,760
3.61
%
13,258,612
3.91
%
13,895,387
3.55
%
12,817,155
4.23
%
Nonearning assets
Allowance for credit losses
(169,979)
(177,863)
(155,454)
(173,899)
(138,290)
Cash and due from banks
237,964
232,275
284,726
235,135
260,211
Accrued interest and other assets
2,139,719
2,206,482
2,322,320
2,172,916
2,178,237
Total assets
$
16,215,469
$
16,042,654
$
15,710,204
$
16,129,539
$
15,117,313
Interest-bearing liabilities
Deposits:
Interest-bearing demand
$
2,973,930
0.07
%
$
2,948,682
0.07
%
$
2,602,917
0.11
%
$
2,961,376
0.07
%
$
2,510,555
0.27
%
Savings
4,096,077
0.11
%
3,815,314
0.13
%
3,173,274
0.17
%
3,956,471
0.12
%
3,074,896
0.31
%
Time
1,637,546
0.51
%
1,767,826
0.60
%
2,619,038
1.49
%
1,702,326
0.56
%
2,407,559
1.68
%
Total interest-bearing deposits
8,707,553
0.17
%
8,531,822
0.21
%
8,395,229
0.56
%
8,620,173
0.19
%
7,993,010
0.71
%
Borrowed funds
Short-term borrowings
235,324
0.09
%
251,705
0.11
%
693,474
0.74
%
243,469
0.10
%
1,023,666
1.25
%
Long-term debt
513,790
3.23
%
634,674
2.77
%
579,345
3.29
%
573,898
2.98
%
480,627
3.58
%
Total borrowed funds
749,114
2.25
%
886,379
2.01
%
1,272,819
1.90
%
817,367
2.12
%
1,504,293
2.00
%
Total interest-bearing liabilities
9,456,667
0.33
%
9,418,201
0.38
%
9,668,048
0.74
%
9,437,540
0.36
%
9,497,303
0.91
%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits
4,003,626
3,840,046
3,335,866
3,922,288
2,989,553
Other liabilities
491,489
511,658
520,425
501,518
432,658
Shareholders' equity
2,263,687
2,272,749
2,185,865
2,268,193
2,197,799
Total liabilities & shareholders' equity
$
16,215,469
$
16,042,654
$
15,710,204
$
16,129,539
$
15,117,313
Net interest income
$
114,026
$
113,876
$
111,576
$
227,902
$
225,858
Net interest spread
3.16
%
3.23
%
3.17
%
3.19
%
3.32
%
Net interest margin
3.27
%
3.35
%
3.38
%
3.31
%
3.54
%
Tax equivalent adjustment
0.04
%
0.05
%
0.06
%
0.04
%
0.06
%
Net interest margin (fully tax equivalent)
3.31
%
3.40
%
3.44
%
3.35
%
3.60
%
(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
$
(1,551)
$
2,296
$
745
$
(4,723)
$
5,705
$
982
$
(8,880)
$
9,925
$
1,045
Interest-bearing deposits with other banks
(3)
0
(3)
3
(25)
(22)
(114)
(22)
(136)
Gross loans (2)
(1,333)
(104)
(1,437)
(6,716)
(1,690)
(8,406)
(30,812)
5,562
(25,250)
Total earning assets
(2,887)
2,192
(695)
(11,436)
3,990
(7,446)
(39,806)
15,465
(24,341)
Interest-bearing liabilities
Total interest-bearing deposits
$
(754)
$
114
$
(640)
$
(8,190)
$
132
$
(8,058)
$
(20,674)
$
584
$
(20,090)
Borrowed funds
Short-term borrowings
(11)
(3)
(14)
(1,118)
(103)
(1,221)
(5,856)
(385)
(6,241)
Long-term debt
727
(918)
(191)
(89)
(528)
(617)
(1,431)
1,377
(54)
Total borrowed funds
716
(921)
(205)
(1,207)
(631)
(1,838)
(7,287)
992
(6,295)
Total interest-bearing liabilities
(38)
(807)
(845)
(9,397)
(499)
(9,896)
(27,961)
1,576
(26,385)
Net interest income (1)
$
(2,849)
$
2,999
$
150
$
(2,039)
$
4,489
$
2,450
$
(11,845)
$
13,889
$
2,044
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.
FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
Six months ended
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
June 30,
2021
2021
2020
2020
2020
2021
2020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period
$
169,923
$
175,679
$
168,544
$
158,661
$
143,885
$
175,679
$
57,650
Day one adoption impact of ASC 326
0
0
0
0
0
0
61,505
Provision for credit losses
(4,756)
3,450
13,758
15,299
17,859
(1,306)
41,739
Gross charge-offs
Commercial and industrial
3,729
7,910
1,505
1,467
1,282
11,639
2,373
Lease financing
0
0
0
852
0
0
0
Construction real estate
0
2
0
0
0
2
0
Commercial real estate
2,041
1,250
6,270
3,789
2,037
3,291
2,041
Residential real estate
46
1
203
22
148
47
263
Home equity
240
611
386
460
428
851
695
Installment
77
36
21
59
7
113
68
Credit card
179
222
169
171
234
401
545
Total gross charge-offs
6,312
10,032
8,554
6,820
4,136
16,344
5,985
Recoveries
Commercial and industrial
205
337
367
265
275
542
2,275
Lease financing
0
0
(6)
6
0
0
0
Construction real estate
3
0
3
0
14
3
14
Commercial real estate
75
195
844
760
424
270
658
Residential real estate
54
44
145
91
93
98
145
Home equity
317
177
428
209
156
494
495
Installment
37
34
65
35
27
71
58
Credit card
44
39
85
38
64
83
107
Total recoveries
735
826
1,931
1,404
1,053
1,561
3,752
Total net charge-offs
5,577
9,206
6,623
5,416
3,083
14,783
2,233
Ending allowance for credit losses
$
159,590
$
169,923
$
175,679
$
168,544
$
158,661
$
159,590
$
158,661
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial
0.48
%
1.01
%
0.14
%
0.14
%
0.13
%
0.75
%
0.01
%
Lease financing
0.00
%
0.00
%
0.03
%
4.29
%
0.00
%
0.00
%
0.00
%
Construction real estate
0.00
%
0.00
%
0.00
%
0.00
%
(0.01)
%
0.00
%
(0.01)
%
Commercial real estate
0.18
%
0.10
%
0.50
%
0.28
%
0.15
%
0.14
%
0.06
%
Residential real estate
0.00
%
(0.02)
%
0.02
%
(0.03)
%
0.02
%
(0.01)
%
0.02
%
Home equity
(0.04)
%
0.24
%
(0.02)
%
0.13
%
0.14
%
0.10
%
0.05
%
Installment
0.19
%
0.01
%
(0.21)
%
0.12
%
(0.10)
%
0.10
%
0.03
%
Credit card
1.12
%
1.59
%
0.69
%
1.16
%
1.54
%
1.35
%
1.86
%
Total net charge-offs
0.23
%
0.38
%
0.26
%
0.21
%
0.12
%
0.30
%
0.05
%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial
$
27,426
$
24,941
$
29,230
$
34,686
$
33,906
$
27,426
$
33,906
Lease financing
16
0
0
1,092
1,353
16
1,353
Construction real estate
0
0
0
0
0
0
0
Commercial real estate
45,957
44,514
34,682
24,521
14,002
45,957
14,002
Residential real estate
9,480
11,359
11,601
12,104
12,813
9,480
12,813
Home equity
3,376
4,286
5,076
5,374
5,604
3,376
5,604
Installment
115
146
163
153
201
115
201
Nonaccrual loans
86,370
85,246
80,752
77,930
67,879
86,370
67,879
Accruing troubled debt restructurings (TDRs)
12,070
11,608
7,099
7,759
8,377
12,070
8,377
Total nonperforming loans
98,440
96,854
87,851
85,689
76,256
98,440
76,256
Other real estate owned (OREO)
340
854
1,287
1,643
1,872
340
1,872
Total nonperforming assets
98,780
97,708
89,138
87,332
78,128
98,780
78,128
Accruing loans past due 90 days or more
155
92
169
79
124
155
124
Total underperforming assets
$
98,935
$
97,800
$
89,307
$
87,411
$
78,252
$
98,935
$
78,252
Total classified assets
$
182,516
$
196,782
$
142,021
$
134,002
$
125,543
$
182,516
$
125,543
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans
184.77
%
199.33
%
217.55
%
216.28
%
233.74
%
184.77
%
233.74
%
Nonperforming loans
162.12
%
175.44
%
199.97
%
196.69
%
208.06
%
162.12
%
208.06
%
Total ending loans
1.68
%
1.71
%
1.77
%
1.65
%
1.56
%
1.68
%
1.56
%
Nonperforming loans to total loans
1.03
%
0.97
%
0.89
%
0.84
%
0.75
%
1.03
%
0.75
%
Nonperforming assets to
Ending loans, plus OREO
1.04
%
0.98
%
0.90
%
0.86
%
0.77
%
1.04
%
0.77
%
Total assets
0.62
%
0.60
%
0.56
%
0.55
%
0.49
%
0.62
%
0.49
%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO
0.91
%
0.87
%
0.83
%
0.78
%
0.68
%
0.91
%
0.68
%
Total assets
0.54
%
0.53
%
0.51
%
0.50
%
0.44
%
0.54
%
0.44
%
Classified assets to total assets
1.14
%
1.22
%
0.89
%
0.84
%
0.79
%
1.14
%
0.79
%
(1) Nonaccrual loans include nonaccrual TDRs of $21.5 million, $20.9 million , $14.7 million , $29.3 million , and $32.7 million , as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively.
FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Six months ended,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
June 30,
June 30,
2021
2021
2020
2020
2020
2021
2020
PER COMMON SHARE
Market Price
High
$
26.02
$
26.40
$
17.77
$
15.15
$
16.38
$
26.40
$
25.52
Low
$
23.35
$
17.62
$
12.07
$
11.40
$
11.52
$
17.62
$
11.52
Close
$
23.63
$
24.00
$
17.53
$
12.01
$
13.89
$
23.63
$
13.89
Average shares outstanding - basic
96,123,645
96,873,940
97,253,787
97,247,080
97,220,748
96,496,720
97,478,719
Average shares outstanding - diluted
97,009,712
97,727,527
98,020,534
98,008,733
97,988,600
97,366,640
98,172,408
Ending shares outstanding
96,199,509
97,517,693
98,021,929
97,999,763
98,018,858
96,199,509
98,018,858
Total shareholders' equity
$
2,269,507
$
2,258,942
$
2,282,070
$
2,247,815
$
2,221,019
$
2,269,507
$
2,221,019
REGULATORY CAPITAL
Preliminary
Preliminary
Common equity tier 1 capital
$
1,333,209
$
1,334,882
$
1,325,922
$
1,293,716
$
1,267,609
$
1,333,209
$
1,267,609
Common equity tier 1 capital ratio
11.78
%
11.81
%
11.82
%
11.63
%
11.49
%
11.78
%
11.49
%
Tier 1 capital
$
1,376,333
$
1,377,892
$
1,368,818
$
1,336,497
$
1,310,276
$
1,376,333
$
1,310,276
Tier 1 ratio
12.16
%
12.19
%
12.20
%
12.02
%
11.87
%
12.16
%
11.87
%
Total capital
$
1,732,930
$
1,741,755
$
1,744,802
$
1,708,817
$
1,676,532
$
1,732,930
$
1,676,532
Total capital ratio
15.31
%
15.41
%
15.55
%
15.37
%
15.19
%
15.31
%
15.19
%
Total capital in excess of minimum requirement
$
544,478
$
554,834
$
566,795
$
541,263
$
517,902
$
544,478
$
517,902
Total risk-weighted assets
$
11,318,590
$
11,304,012
$
11,219,114
$
11,119,560
$
11,034,570
$
11,318,590
$
11,034,570
Leverage ratio
9.14
%
9.34
%
9.55
%
9.55
%
8.98
%
9.14
%
8.98
%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets
14.15
%
13.97
%
14.29
%
14.11
%
13.99
%
14.15
%
13.99
%
Ending tangible shareholders' equity to ending tangible assets (1)
8.37
%
8.22
%
8.47
%
8.25
%
8.09
%
8.37
%
8.09
%
Average shareholders' equity to average assets
13.96
%
14.17
%
14.07
%
14.08
%
13.91
%
14.06
%
14.54
%
Average tangible shareholders' equity to average tangible assets (1)
8.23
%
8.38
%
8.26
%
8.18
%
7.94
%
8.30
%
8.34
%
REPURCHASE PROGRAM (2)
Shares repurchased
1,308,945
840,115
0
0
0
2,149,060
880,000
Average share repurchase price
$
25.11
$
21.40
N/A
N/A
N/A
$
23.66
$
18.96
Total cost of shares repurchased
$
32,864
$
17.982
N/A
N/A
N/A
$
50,846
$
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.
(2) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable
https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-second-quarter-2021-financial-results-301339819.html
SOURCE First Financial Bancorp.
