First Financial Bancorp Announces First Quarter 2024 Financial Results and Quarterly Dividend

About this update from First Financial Bancorp.

Earnings per diluted share of $0.53 ; $0.59 on an adjusted(1) basis Return on average assets of 1.18%; 1.30% on an adjusted(1) basis Net interest margin on FTE basis (1) of 4.10% Acquired Agile Premium Finance Loan growth of $271.9 million ; 10.0% on an annualized basis Tangible common equity ratio increased to 7.23% Quarterly dividend of $0.23 approved by Board of Directors CINCINNATI , April 25, 2024 /PRNewswire/ -- First Financial Bancorp . (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2024 . For the three months ended March 31, 2024 , the Company reported net income of $50.7 million , or $0.53 per diluted common share. These results compare to net income of $56.7 million , or $0.60 per diluted common share, for the fourth quarter of 2023. Return on average assets for the first quarter of 2024 was 1.18% while return on average tangible common equity was 17.35%(1). These compare to return on average assets of 1.31% and return on average tangible common equity of 21.36%(1) in the fourth quarter of 2023. First quarter 2024 highlights include: Net interest margin of 4.05%, or 4.10% on a fully tax-equivalent basis(1) 16 bp decrease to 4.10% from 4.26% in the fourth quarter due to increasing funding costs Decline from linked quarter driven by 19 bp increase in funding costs, which was partially offset by modestly higher asset yields Noninterest income of $46.5 million , or $51.7 million as adjusted(1) Strong leasing business income of $14.6 million Wealth management continues strong performance; 9.6% increase from linked quarter Foreign exchange and client derivative fees improved from lower levels in fourth quarter Adjusted(1) $5.2 million for losses on sales of investment securities related to repositioning of a portion of the portfolio Noninterest expenses of $122.4 million , or $121.0 million as adjusted(1) Increase from fourth quarter driven by seasonal payroll taxes and increased variable compensation tied to fee income First quarter adjustments(1) include $0.2 million FDIC special assessment and $1.1 million of other costs such as acquisition, severance and branch consolidation costs Efficiency ratio of 62.7%; 60.4% as adjusted(1) Acquired Agile Premium Finance on February 29, 2024 Lends primarily to commercial customers to finance insurance premiums $93.4 million in loan balances at acquisition; $119.0 million at March 31, 2024 $5.6 million of intangible assets, including $1.8 million of goodwill and $2.7 million customer list _________________________________________________________________________________________ (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. Solid loan growth during the quarter Loan balances increased $271.9 million compared to the linked quarter; includes $93.4 million acquired in Agile transaction Growth of 10.0% on an annualized basis driven by Investor CRE and acquisition of Agile Modest average deposit growth during the quarter Average deposits increased $76.3 million , or 2.3% on an annualized basis; First quarter included approximately $100 million of seasonal business deposit outflows Growth in money market accounts and retail CDs offset declines in noninterest bearing checking, savings and public funds Total Allowance for Credit Losses of $160.4 million ; Total quarterly provision expense of $11.2 million Loans and leases - ACL of $144.3 million ; ratio to total loans of 1.29% unchanged from fourth quarter Unfunded Commitments - ACL of $16.2 million ; decreased $2.3 million from linked quarter Provision expense driven by net charge-offs and loan growth; Classified assets increased to $162.3 million Annualized net charge-offs were 38 bps of total loans; 8 bps decline from linked quarter NPAs to total assets of 0.34%; 4 bp, or 10.5% decline from linked quarter Capital ratios stable and strong Total capital ratio increased 5 bps to 14.31% Tier 1 common equity decreased 6 bps to 11.67% Tangible common equity increased 6 bps to 7.23%(1); 9.18%(1) excluding impact from AOCI Tangible book value per share of $12.50 (1);1.0% increase from linked quarter Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on June 17, 2024 to shareholders of record as of June 3, 2024 . Archie Brown , President and CEO, commented on the quarter, "I am pleased with our first quarter results and encouraged by our trends, several of which were bolstered by actions we took during the quarter. These actions included a repositioning of a portion of the investment portfolio, a workforce efficiency initiative, and the acquisition of Agile Premium Finance. We also commenced the restructuring of a portion of our bank owned life insurance portfolio, which is expected to increase income in the back half of the year." Mr. Brown continued, "Adjusted(1) earnings per share were $0.59 , which resulted in an adjusted(1) return on assets of 1.30% and an adjusted(1) return on tangible common equity of 19.1%. At 4.10%, the net interest margin remains very strong. Asset yields remained steady during the quarter, however, as expected, the continued rise of funding costs negatively impacted our net interest margin. Additionally, loan growth was robust for the second consecutive quarter with balances increasing by 10% on an annualized basis. Average deposit growth slowed for the quarter to a 2.3% annualized growth rate and included a seasonal outflow of business deposits in the first part of the quarter." Mr. Brown continued, "I am also pleased that noninterest income rebounded from the fourth quarter with increases across most of our fee revenue areas. During the quarter, we incurred a loss on the sale of investment securities associated with the repositioning of a portion of the investment portfolio. This repositioning has a very short earnback and should enhance our asset yields going forward. We also intensified our focus on expenses during the first quarter. Our workforce efficiency initiative resulted in the reduction of 43 associates during the quarter and we will continue to evaluate additional expense reductions throughout 2024. While expenses increased on a linked quarter basis, most of the increase was related to seasonal employee costs and variable compensation tied to the increase in fee income." Mr. Brown discussed the Agile acquisition, "We are excited to add Agile to our mix of specialty businesses. Agile operates an impressive business model, which originates high-quality, short duration loans at attractive yields. At closing, we acquired $93 million in loans, which grew to $119 million at quarter end. We believe Agile will further diversify the loan portfolio and is a perfect complement to our Oak Street and commercial banking businesses." Mr. Brown commented on asset quality, "Asset quality was stable for the quarter. Net charge-offs declined for the second consecutive quarter to 38 basis points and were primarily driven by charges on two office loans that had been on nonaccrual since early 2023. These two loans have been charged down to their net realizable value and no other office loans were considered classified at the end of the first quarter. Overall, classified assets increased 12 basis points to 0.92% of assets, while nonperforming assets declined 9.8% from the prior quarter." Mr. Brown concluded, "I am pleased with our quarter and with the work our teams are doing to continuously improve the Company. While we are in a difficult operating environment for the industry, I am encouraged by our results and trends, and I expect we will have another strong year." Full detail of the Company's first quarter 2024 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, 2024 at 8:30 a.m. Eastern Time . Members of the public who would like to listen to the conference call should dial (888) 550-5723 ( U.S. toll free) or (646) 960-0471 ( U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 ( U.S. toll free), (647) 362-9199 ( U.S. local), access code 5048068. The recording will be available until May 10, 2024 . The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com . The webcast will be archived on the Investor Relations section of the Company's website for 12 months. Press Release and Additional Information on Website This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com . Use of Non-GAAP Financial Measures This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. Forward-Looking Statements Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements. As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; Management's ability to effectively execute its business plans; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period; the effect of changes in accounting policies and practices; changes in consumer spending, borrowing and saving and changes in unemployment; changes in customers' performance and creditworthiness; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and our ability to develop and execute effective business plans and strategies. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2023 , 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, 2024 , the Company had $17.6 billion in assets, $11.2 billion in loans, $13.5 billion in deposits and $2.3 billion in shareholders' equity. The Company's subsidiary, First Financial Bank , founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate , Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.6 billion in assets under management as of March 31, 2024 . The Company operated 130 full service banking centers as of March 31, 2024 , located in Ohio , Indiana , Kentucky and Illinois , while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com . FIRST FINANCIAL BANCORP . CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data) (Unaudited) Three Months Ended, Mar. 31 , Dec. 31 , Sep. 30 , June 30 , Mar. 31 , 2024 2023 2023 2023 2023 RESULTS OF OPERATIONS Net income $ 50,689 $ 56,732 $ 63,061 $ 65,667 $ 70,403 Net earnings per share - basic $ 0.54 $ 0.60 $ 0.67 $ 0.70 $ 0.75 Net earnings per share - diluted $ 0.53 $ 0.60 $ 0.66 $ 0.69 $ 0.74 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 KEY FINANCIAL RATIOS Return on average assets 1.18 % 1.31 % 1.48 % 1.55 % 1.69 % Return on average shareholders' equity 9.00 % 10.50 % 11.62 % 12.32 % 13.71 % Return on average tangible shareholders' equity (1) 17.35 % 21.36 % 23.60 % 25.27 % 29.02 % Net interest margin 4.05 % 4.21 % 4.28 % 4.43 % 4.51 % Net interest margin (fully tax equivalent) (1)(2) 4.10 % 4.26 % 4.33 % 4.48 % 4.55 % Ending shareholders' equity as a percent of ending assets 12.99 % 12.94 % 12.49 % 12.54 % 12.53 % Ending tangible shareholders' equity as a percent of: Ending tangible assets (1) 7.23 % 7.17 % 6.50 % 6.56 % 6.47 % Risk-weighted assets (1) 8.80 % 8.81 % 7.88 % 8.03 % 7.87 % Average shareholders' equity as a percent of average assets 13.09 % 12.52 % 12.70 % 12.60 % 12.29 % Average tangible shareholders' equity as a percent of average tangible assets (1) 7.25 % 6.57 % 6.69 % 6.57 % 6.21 % Book value per share $ 23.95 $ 23.84 $ 22.39 $ 22.52 $ 22.29 Tangible book value per share (1) $ 12.50 $ 12.38 $ 10.91 $ 11.02 $ 10.76 Common equity tier 1 ratio (3) 11.67 % 11.73 % 11.60 % 11.34 % 11.00 % Tier 1 ratio (3) 12.00 % 12.06 % 11.94 % 11.68 % 11.34 % Total capital ratio (3) 14.31 % 14.26 % 14.19 % 14.16 % 13.79 % Leverage ratio (3) 9.75 % 9.70 % 9.59 % 9.33 % 9.03 % AVERAGE BALANCE SHEET ITEMS Loans (4) $ 11,066,184 $ 10,751,028 $ 10,623,734 $ 10,513,505 $ 10,373,302 Investment securities 3,137,665 3,184,408 3,394,237 3,560,453 3,635,317 Interest-bearing deposits with other banks 553,654 548,153 386,173 329,584 318,026 Total earning assets $ 14,757,503 $ 14,483,589 $ 14,404,144 $ 14,403,542 $ 14,326,645 Total assets $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 16,968,055 $ 16,942,999 Noninterest-bearing deposits $ 3,169,750 $ 3,368,024 $ 3,493,305 $ 3,663,419 $ 3,954,915 Interest-bearing deposits 10,109,416 9,834,819 9,293,860 9,050,464 8,857,226 Total deposits $ 13,279,166 $ 13,202,843 $ 12,787,165 $ 12,713,883 $ 12,812,141 Borrowings $ 1,139,014 $ 1,083,954 $ 1,403,071 $ 1,523,699 $ 1,434,338 Shareholders' equity $ 2,265,562 $ 2,144,482 $ 2,153,601 $ 2,137,765 $ 2,082,210 CREDIT QUALITY RATIOS Allowance to ending loans 1.29 % 1.29 % 1.36 % 1.41 % 1.36 % Allowance to nonaccrual loans 243.55 % 215.10 % 193.75 % 276.70 % 409.46 % Nonaccrual loans to total loans 0.53 % 0.60 % 0.70 % 0.51 % 0.33 % Nonperforming assets to ending loans, plus OREO 0.53 % 0.60 % 0.71 % 0.51 % 0.33 % Nonperforming assets to total assets 0.34 % 0.38 % 0.44 % 0.32 % 0.21 % Classified assets to total assets 0.92 % 0.80 % 0.82 % 0.81 % 0.94 % Net charge-offs to average loans (annualized) 0.38 % 0.46 % 0.61 % 0.22 % 0.00 % (1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. (2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. (3) March 31, 2024 regulatory capital ratios are preliminary. (4) Includes loans held for sale. FIRST FINANCIAL BANCORP . CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) 2024 2023 First Fourth Third Second First Full Quarter Quarter Quarter Quarter Quarter Year Interest income Loans and leases, including fees $ 201,840 $ 197,416 $ 192,261 $ 184,387 $ 169,706 $ 743,770 Investment securities Taxable 28,296 30,294 31,297 32,062 31,867 125,520 Tax-exempt 3,092 3,402 3,522 3,513 3,464 13,901 Total investment securities interest 31,388 33,696 34,819 35,575 35,331 139,421 Other earning assets 7,458 7,325 5,011 3,933 3,544 19,813 Total interest income 240,686 238,437 232,091 223,895 208,581 903,004 Interest expense Deposits 76,075 69,193 57,069 44,292 31,456 202,010 Short-term borrowings 10,943 10,277 14,615 15,536 12,950 53,378 Long-term borrowings 4,928 5,202 4,952 4,835 4,857 19,846 Total interest expense 91,946 84,672 76,636 64,663 49,263 275,234 Net interest income 148,740 153,765 155,455 159,232 159,318 627,770 Provision for credit losses-loans and leases 13,419 8,804 12,907 12,719 8,644 43,074 Provision for credit losses-unfunded commitments (2,259) 1,426 (1,234) (1,994) 1,835 33 Net interest income after provision for credit losses 137,580 143,535 143,782 148,507 148,839 584,663 Noninterest income Service charges on deposit accounts 6,912 6,846 6,957 6,972 6,514 27,289 Wealth management fees 6,676 6,091 6,943 6,713 6,334 26,081 Bankcard income 3,142 3,349 3,406 3,692 3,592 14,039 Client derivative fees 1,250 711 1,612 1,827 1,005 5,155 Foreign exchange income 10,435 8,730 13,384 15,039 16,898 54,051 Leasing business income 14,589 12,856 14,537 10,265 13,664 51,322 Net gains from sales of loans 3,784 2,957 4,086 3,839 2,335 13,217 Net gain (loss) on sale of investment securities (5,277) (851) (4) (384) (19) (1,258) Net gain (loss) on equity securities 90 202 (54) (82) 140 206 Other 4,911 6,102 5,761 5,377 5,080 22,320 Total noninterest income 46,512 46,993 56,628 53,258 55,543 212,422 Noninterest expenses Salaries and employee benefits 74,037 70,637 75,641 74,199 72,254 292,731 Net occupancy 5,923 5,890 5,809 5,606 5,685 22,990 Furniture and equipment 3,688 3,523 3,341 3,362 3,317 13,543 Data processing 8,305 8,488 8,473 9,871 9,020 35,852 Marketing 1,962 2,087 2,598 2,802 2,160 9,647 Communication 795 707 744 644 634 2,729 Professional services 2,268 3,148 2,524 2,308 1,946 9,926 State intangible tax 877 984 981 964 985 3,914 FDIC assessments 2,780 3,651 2,665 2,806 2,826 11,948 Intangible amortization 2,301 2,601 2,600 2,601 2,600 10,402 Leasing business expense 9,754 8,955 8,877 6,730 7,938 32,500 Other 9,665 8,466 7,791 8,722 7,328 32,307 Total noninterest expenses 122,355 119,137 122,044 120,615 116,693 478,489 Income before income taxes 61,737 71,391 78,366 81,150 87,689 318,596 Income tax expense (benefit) 11,048 14,659 15,305 15,483 17,286 62,733 Net income $ 50,689 $ 56,732 $ 63,061 $ 65,667 $ 70,403 $ 255,863 ADDITIONAL DATA Net earnings per share - basic $ 0.54 $ 0.60 $ 0.67 $ 0.70 $ 0.75 $ 2.72 Net earnings per share - diluted $ 0.53 $ 0.60 $ 0.66 $ 0.69 $ 0.74 $ 2.69 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 Return on average assets 1.18 % 1.31 % 1.48 % 1.55 % 1.69 % 1.51 % Return on average shareholders' equity 9.00 % 10.50 % 11.62 % 12.32 % 13.71 % 12.01 % Interest income $ 240,686 $ 238,437 $ 232,091 $ 223,895 $ 208,581 $ 903,004 Tax equivalent adjustment 1,535 1,672 1,659 1,601 1,424 6,356 Interest income - tax equivalent 242,221 240,109 233,750 225,496 210,005 909,360 Interest expense 91,946 84,672 76,636 64,663 49,263 275,234 Net interest income - tax equivalent $ 150,275 $ 155,437 $ 157,114 $ 160,833 $ 160,742 $ 634,126 Net interest margin 4.05 % 4.21 % 4.28 % 4.43 % 4.51 % 4.36 % Net interest margin (fully tax equivalent) (1) 4.10 % 4.26 % 4.33 % 4.48 % 4.55 % 4.40 % Full-time equivalent employees 2,116 2,129 2,121 2,193 2,066 (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 , June 30 , Mar. 31 , % Change % Change 2024 2023 2023 2023 2023 Linked Qtr. Comp Qtr. ASSETS Cash and due from banks $ 199,407 $ 213,059 $ 220,335 $ 217,385 $ 199,835 (6.4) % (0.2) % Interest-bearing deposits with other banks 751,290 792,960 452,867 485,241 305,465 (5.3) % 145.9 % Investment securities available-for-sale 2,850,667 3,021,126 3,044,361 3,249,404 3,384,949 (5.6) % (15.8) % Investment securities held-to-maturity 79,542 80,321 81,236 82,372 83,070 (1.0) % (4.2) % Other investments 125,548 129,945 133,725 141,892 143,606 (3.4) % (12.6) % Loans held for sale 11,534 9,213 12,391 15,267 9,280 25.2 % 24.3 % Loans and leases Commercial and industrial 3,591,428 3,501,221 3,420,873 3,433,162 3,449,289 2.6 % 4.1 % Lease financing 492,862 474,817 399,973 360,801 273,898 3.8 % 79.9 % Construction real estate 641,596 564,832 578,824 536,464 525,906 13.6 % 22.0 % Commercial real estate 4,145,969 4,080,939 3,992,654 4,048,460 4,056,627 1.6 % 2.2 % Residential real estate 1,344,677 1,333,674 1,293,470 1,221,484 1,145,069 0.8 % 17.4 % Home equity 773,811 758,676 743,991 728,711 724,672 2.0 % 6.8 % Installment 153,838 159,078 160,648 165,216 204,372 (3.3) % (24.7) % Credit card 60,939 59,939 56,386 55,911 53,552 1.7 % 13.8 % Total loans 11,205,120 10,933,176 10,646,819 10,550,209 10,433,385 2.5 % 7.4 % Less: Allowance for credit losses (144,274) (141,433) (145,201) (148,646) (141,591) 2.0 % 1.9 % Net loans 11,060,846 10,791,743 10,501,618 10,401,563 10,291,794 2.5 % 7.5 % Premises and equipment 198,428 194,740 192,572 192,077 188,959 1.9 % 5.0 % Operating leases 161,473 153,214 136,883 132,272 153,986 5.4 % 4.9 % Goodwill 1,007,656 1,005,868 1,005,868 1,005,828 1,005,738 0.2 % 0.2 % Other intangibles 85,603 83,949 86,378 88,662 91,169 2.0 % (6.1) % Accrued interest and other assets 1,067,244 1,056,762 1,186,618 1,078,186 1,076,033 1.0 % (0.8) % Total Assets $ 17,599,238 $ 17,532,900 $ 17,054,852 $ 17,090,149 $ 16,933,884 0.4 % 3.9 % LIABILITIES Deposits Interest-bearing demand $ 2,916,518 $ 2,993,219 $ 2,880,617 $ 2,919,472 $ 2,761,811 (2.6) % 5.6 % Savings 4,467,894 4,331,228 4,023,455 3,785,445 3,746,403 3.2 % 19.3 % Time 2,896,860 2,718,390 2,572,909 2,484,780 2,336,368 6.6 % 24.0 % Total interest-bearing deposits 10,281,272 10,042,837 9,476,981 9,189,697 8,844,582 2.4 % 16.2 % Noninterest-bearing 3,175,876 3,317,960 3,438,572 3,605,181 3,830,102 (4.3) % (17.1) % Total deposits 13,457,148 13,360,797 12,915,553 12,794,878 12,674,684 0.7 % 6.2 % FHLB short-term borrowings 700,000 800,000 755,000 1,050,300 1,089,400 (12.5) % (35.7) % Other 162,145 137,814 219,188 165,983 128,160 17.7 % 26.5 % Total short-term borrowings 862,145 937,814 974,188 1,216,283 1,217,560 (8.1) % (29.2) % Long-term debt 343,236 344,115 340,902 339,963 342,647 (0.3) % 0.2 % Total borrowed funds 1,205,381 1,281,929 1,315,090 1,556,246 1,560,207 (6.0) % (22.7) % Accrued interest and other liabilities 649,706 622,200 694,700 595,606 577,497 4.4 % 12.5 % Total Liabilities 15,312,235 15,264,926 14,925,343 14,946,730 14,812,388 0.3 % 3.4 % SHAREHOLDERS' EQUITY Common stock 1,632,971 1,638,972 1,636,054 1,632,659 1,629,428 (0.4) % 0.2 % Retained earnings 1,166,065 1,136,718 1,101,905 1,060,715 1,016,893 2.6 % 14.7 % Accumulated other comprehensive income (loss) (321,109) (309,819) (410,005) (353,010) (328,059) 3.6 % (2.1) % Treasury stock, at cost (190,924) (197,897) (198,445) (196,945) (196,766) (3.5) % (3.0) % Total Shareholders' Equity 2,287,003 2,267,974 2,129,509 2,143,419 2,121,496 0.8 % 7.8 % Total Liabilities and Shareholders' Equity $ 17,599,238 $ 17,532,900 $ 17,054,852 $ 17,090,149 $ 16,933,884 0.4 % 3.9 % FIRST FINANCIAL BANCORP . AVERAGE CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands) (Unaudited) Quarterly Averages Mar. 31 , Dec. 31 , Sep. 30 , June 30 , Mar. 31 , 2024 2023 2023 2023 2023 ASSETS Cash and due from banks $ 204,119 $ 214,678 $ 211,670 $ 221,527 $ 218,724 Interest-bearing deposits with other banks 553,654 548,153 386,173 329,584 318,026 Investment securities 3,137,665 3,184,408 3,394,237 3,560,453 3,635,317 Loans held for sale 12,069 12,547 15,420 11,856 5,531 Loans and leases Commercial and industrial 3,543,475 3,422,381 3,443,615 3,469,683 3,456,681 Lease financing 480,540 419,179 371,598 323,819 252,219 Construction real estate 603,974 540,314 547,884 518,190 536,294 Commercial real estate 4,101,238 4,060,733 4,024,798 4,050,946 4,017,021 Residential real estate 1,336,749 1,320,670 1,260,249 1,181,053 1,115,889 Home equity 765,410 750,925 735,251 726,333 728,185 Installment 157,663 160,242 164,092 172,147 205,934 Credit card 65,066 64,037 60,827 59,478 55,548 Total loans 11,054,115 10,738,481 10,608,314 10,501,649 10,367,771 Less: Allowance for credit losses (143,950) (149,398) (150,297) (145,578) (136,419) Net loans 10,910,165 10,589,083 10,458,017 10,356,071 10,231,352 Premises and equipment 198,482 194,435 194,228 190,583 190,346 Operating leases 154,655 139,331 132,984 138,725 107,092 Goodwill 1,006,477 1,005,870 1,005,844 1,005,791 1,005,713 Other intangibles 84,109 85,101 87,427 89,878 92,587 Accrued interest and other assets 1,044,826 1,151,349 1,065,389 1,063,587 1,138,311 Total Assets $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 16,968,055 $ 16,942,999 LIABILITIES Deposits Interest-bearing demand $ 2,895,768 $ 2,988,086 $ 2,927,416 $ 2,906,855 $ 2,906,712 Savings 4,399,768 4,235,658 3,919,590 3,749,902 3,818,807 Time 2,813,880 2,611,075 2,446,854 2,393,707 2,131,707 Total interest-bearing deposits 10,109,416 9,834,819 9,293,860 9,050,464 8,857,226 Noninterest-bearing 3,169,750 3,368,024 3,493,305 3,663,419 3,954,915 Total deposits 13,279,166 13,202,843 12,787,165 12,713,883 12,812,141 Federal funds purchased and securities sold under agreements to repurchase 4,204 3,586 10,788 21,881 26,380 FHLB short-term borrowings 646,187 554,826 878,199 1,028,207 925,144 Other 146,127 185,221 175,682 132,088 139,195 Total short-term borrowings 796,518 743,633 1,064,669 1,182,176 1,090,719 Long-term debt 342,496 340,321 338,402 341,523 343,619 Total borrowed funds 1,139,014 1,083,954 1,403,071 1,523,699 1,434,338 Accrued interest and other liabilities 622,479 693,676 607,552 592,708 614,310 Total Liabilities 15,040,659 14,980,473 14,797,788 14,830,290 14,860,789 SHAREHOLDERS' EQUITY Common stock 1,637,835 1,637,197 1,634,102 1,631,230 1,633,396 Retained earnings 1,144,447 1,111,786 1,076,515 1,034,092 989,777 Accumulated other comprehensive loss (319,601) (406,265) (358,769) (330,263) (339,450) Treasury stock, at cost (197,119) (198,236) (198,247) (197,294) (201,513) Total Shareholders' Equity 2,265,562 2,144,482 2,153,601 2,137,765 2,082,210 Total Liabilities and Shareholders' Equity $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 16,968,055 $ 16,942,999 FIRST FINANCIAL BANCORP . NET INTEREST MARGIN RATE/VOLUME ANALYSIS (Dollars in thousands) (Unaudited) Quarterly Averages March 31, 2024 December 31, 2023 March 31, 2023 Balance Interest Yield Balance Interest Yield Balance Interest Yield Earning assets Investments: Investment securities $ 3,137,665 $ 31,388 4.01 % $ 3,184,408 $ 33,696 4.20 % $ 3,635,317 $ 35,331 3.94 % Interest-bearing deposits with other banks 553,654 7,458 5.40 % 548,153 7,325 5.30 % 318,026 3,544 4.52 % Gross loans (1) 11,066,184 201,840 7.32 % 10,751,028 197,416 7.29 % 10,373,302 169,706 6.63 % Total earning assets 14,757,503 240,686 6.54 % 14,483,589 238,437 6.53 % 14,326,645 208,581 5.90 % Nonearning assets Allowance for credit losses (143,950) (149,398) (136,419) Cash and due from banks 204,119 214,678 218,724 Accrued interest and other assets 2,488,549 2,576,086 2,534,049 Total assets $ 17,306,221 $ 17,124,955 $ 16,942,999 Interest-bearing liabilities Deposits: Interest-bearing demand $ 2,895,768 $ 14,892 2.06 % $ 2,988,086 $ 14,480 1.92 % $ 2,906,712 $ 6,604 0.92 % Savings 4,399,768 29,486 2.69 % 4,235,658 26,632 2.49 % 3,818,807 7,628 0.81 % Time 2,813,880 31,697 4.52 % 2,611,075 28,081 4.27 % 2,131,707 17,224 3.28 % Total interest-bearing deposits 10,109,416 76,075 3.02 % 9,834,819 69,193 2.79 % 8,857,226 31,456 1.44 % Borrowed funds Short-term borrowings 796,518 10,943 5.51 % 743,633 10,277 5.48 % 1,090,719 12,950 4.82 % Long-term debt 342,496 4,928 5.77 % 340,321 5,202 6.06 % 343,619 4,857 5.73 % Total borrowed funds 1,139,014 15,871 5.59 % 1,083,954 15,479 5.67 % 1,434,338 17,807 5.03 % Total interest-bearing liabilities 11,248,430 91,946 3.28 % 10,918,773 84,672 3.08 % 10,291,564 49,263 1.94 % Noninterest-bearing liabilities Noninterest-bearing demand deposits 3,169,750 3,368,024 3,954,915 Other liabilities 622,479 693,676 614,310 Shareholders' equity 2,265,562 2,144,482 2,082,210 Total liabilities & shareholders' equity $ 17,306,221 $ 17,124,955 $ 16,942,999 Net interest income $ 148,740 $ 153,765 $ 159,318 Net interest spread 3.26 % 3.45 % 3.96 % Net interest margin 4.05 % 4.21 % 4.51 % Tax equivalent adjustment 0.05 % 0.05 % 0.04 % Net interest margin (fully tax equivalent) 4.10 % 4.26 % 4.55 % (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 Rate Volume Total Rate Volume Total Earning assets Investment securities $ (1,490) $ (818) $ (2,308) $ 636 $ (4,579) $ (3,943) Interest-bearing deposits with other banks 140 (7) 133 693 3,221 3,914 Gross loans (2) 831 3,593 4,424 17,417 14,717 32,134 Total earning assets (519) 2,768 2,249 18,746 13,359 32,105 Interest-bearing liabilities Total interest-bearing deposits $ 5,629 $ 1,253 $ 6,882 $ 34,464 $ 10,155 $ 44,619 Borrowed funds Short-term borrowings 52 614 666 1,870 (3,877) (2,007) Long-term debt (251) (23) (274) 33 38 71 Total borrowed funds (199) 591 392 1,903 (3,839) (1,936) Total interest-bearing liabilities 5,430 1,844 7,274 36,367 6,316 42,683 Net interest income (1) $ (5,949) $ 924 $ (5,025) $ (17,621) $ 7,043 $ (10,578) (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) Mar. 31 , Dec. 31 , Sep. 30 , June 30 , Mar. 31 , 2024 2023 2023 2023 2023 ALLOWANCE FOR CREDIT LOSS ACTIVITY Balance at beginning of period $ 141,433 $ 145,201 $ 148,646 $ 141,591 $ 132,977 Provision for credit losses 13,419 8,804 12,907 12,719 8,644 Gross charge-offs Commercial and industrial 2,695 6,866 9,207 2,372 730 Lease financing 3 4,244 76 90 13 Construction real estate 0 0 0 0 0 Commercial real estate 5,319 1 6,008 2,648 66 Residential real estate 65 9 10 20 0 Home equity 25 174 54 21 91 Installment 2,236 2,054 1,349 1,515 1,524 Credit card 794 363 319 274 217 Total gross charge-offs 11,137 13,711 17,023 6,940 2,641 Recoveries Commercial and industrial 162 459 335 631 109 Lease financing 59 52 1 1 1 Construction real estate 0 0 0 0 0 Commercial real estate 38 93 39 153 2,238 Residential real estate 24 24 44 113 66 Home equity 80 178 125 232 80 Installment 145 210 87 90 54 Credit card 51 123 40 56 63 Total recoveries 559 1,139 671 1,276 2,611 Total net charge-offs 10,578 12,572 16,352 5,664 30 Ending allowance for credit losses $ 144,274 $ 141,433 $ 145,201 $ 148,646 $ 141,591 NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) Commercial and industrial 0.29 % 0.74 % 1.02 % 0.20 % 0.07 % Lease financing (0.05) % 3.97 % 0.08 % 0.11 % 0.02 % Construction real estate 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Commercial real estate 0.52 % (0.01) % 0.59 % 0.25 % (0.22) % Residential real estate 0.01 % 0.00 % (0.01) % (0.03) % (0.02) % Home equity (0.03) % 0.00 % (0.04) % (0.12) % 0.01 % Installment 5.33 % 4.57 % 3.05 % 3.32 % 2.89 % Credit card 4.59 % 1.49 % 1.82 % 1.47 % 1.12 % Total net charge-offs 0.38 % 0.46 % 0.61 % 0.22 % 0.00 % COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS Nonaccrual loans Commercial and industrial $ 14,532 $ 15,746 $ 17,152 $ 21,508 $ 13,971 Lease financing 3,794 3,610 7,731 4,833 175 Construction real estate 0 0 0 0 0 Commercial real estate 23,055 27,984 33,019 11,876 5,362 Residential real estate 12,836 14,067 12,328 11,697 11,129 Home equity 4,036 3,476 3,937 3,239 3,399 Installment 984 870 774 568 544 Total nonaccrual loans 59,237 65,753 74,941 53,721 34,580 Other real estate owned (OREO) 161 106 142 281 191 Total nonperforming assets 59,398 65,859 75,083 54,002 34,771 Accruing loans past due 90 days or more 820 2,028 698 873 159 Total underperforming assets $ 60,218 $ 67,887 $ 75,781 $ 54,875 $ 34,930 Total classified assets $ 162,348 $ 140,995 $ 140,552 $ 138,909 $ 158,984 CREDIT QUALITY RATIOS Allowance for credit losses to Nonaccrual loans 243.55 % 215.10 % 193.75 % 276.70 % 409.46 % Total ending loans 1.29 % 1.29 % 1.36 % 1.41 % 1.36 % Nonaccrual loans to total loans 0.53 % 0.60 % 0.70 % 0.51 % 0.33 % Nonperforming assets to Ending loans, plus OREO 0.53 % 0.60 % 0.71 % 0.51 % 0.33 % Total assets 0.34 % 0.38 % 0.44 % 0.32 % 0.21 % Nonperforming assets, excluding accruing TDRs to Ending loans, plus OREO 0.53 % 0.60 % 0.71 % 0.51 % 0.33 % Total assets 0.34 % 0.38 % 0.44 % 0.32 % 0.21 % Classified assets to total assets 0.92 % 0.80 % 0.82 % 0.81 % 0.94 % FIRST FINANCIAL BANCORP . CAPITAL ADEQUACY (Dollars in thousands, except per share data) (Unaudited) Three Months Ended, Mar. 31 , Dec. 31 , Sep. 30 , June 30 , Mar. 31 , 2024 2023 2023 2023 2023 PER COMMON SHARE Market Price High $ 23.68 $ 24.28 $ 24.02 $ 22.27 $ 26.24 Low $ 21.04 $ 17.37 $ 19.19 $ 18.20 $ 21.30 Close $ 22.42 $ 23.75 $ 19.60 $ 20.44 $ 21.77 Average shares outstanding - basic 94,218,067 94,063,570 94,030,275 93,924,068 93,732,532 Average shares outstanding - diluted 95,183,998 95,126,316 95,126,269 95,169,348 94,960,158 Ending shares outstanding 95,473,595 95,141,244 95,117,180 95,185,483 95,190,406 Total shareholders' equity $ 2,287,003 $ 2,267,974 $ 2,129,509 $ 2,143,419 $ 2,121,496 REGULATORY CAPITAL Preliminary Common equity tier 1 capital $ 1,582,113 $ 1,568,815 $ 1,527,793 $ 1,481,913 $ 1,432,332 Common equity tier 1 capital ratio 11.67 % 11.73 % 11.60 % 11.34 % 11.00 % Tier 1 capital $ 1,626,899 $ 1,613,480 $ 1,572,248 $ 1,526,362 $ 1,476,734 Tier 1 ratio 12.00 % 12.06 % 11.94 % 11.68 % 11.34 % Total capital $ 1,940,762 $ 1,907,441 $ 1,868,490 $ 1,851,144 $ 1,796,385 Total capital ratio 14.31 % 14.26 % 14.19 % 14.16 % 13.79 % Total capital in excess of minimum requirement $ 516,704 $ 503,152 $ 485,580 $ 478,911 $ 428,700 Total risk-weighted assets $ 13,562,455 $ 13,374,177 $ 13,170,574 $ 13,068,888 $ 13,025,567 Leverage ratio 9.75 % 9.70 % 9.59 % 9.33 % 9.03 % OTHER CAPITAL RATIOS Ending shareholders' equity to ending assets 12.99 % 12.94 % 12.49 % 12.54 % 12.53 % Ending tangible shareholders' equity to ending tangible assets (1) 7.23 % 7.17 % 6.50 % 6.56 % 6.47 % Average shareholders' equity to average assets 13.09 % 12.52 % 12.70 % 12.60 % 12.29 % Average tangible shareholders' equity to average tangible assets (1) 7.25 % 6.57 % 6.69 % 6.57 % 6.21 % REPURCHASE PROGRAM (2) Shares repurchased 0 0 0 0 0 Average share repurchase price N/A N/A N/A N/A N/A Total cost of shares repurchased N/A N/A N/A N/A N/A (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 View original content: https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-first-quarter-2024-financial-results-and-quarterly-dividend-302127918.html SOURCE First Financial Bancorp .

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