First Financial Bancorp Announces Second Quarter 2022 Financial Results

About this update from First Financial Bancorp.

Earnings per diluted share of $0.55 ; $0.56 on an adjusted (1) basis Return on average assets of 1.28%; 1.31% on an adjusted (1) basis Net interest margin on FTE basis (1) of 3.47%; 30 bp increase from linked quarter Loan growth of $191.4 million , excluding PPP; 8.3% on an annualized basis Noninterest income of $49.8 million increased 20.6% from the linked quarter CINCINNATI , July 21, 2022 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2022 . For the three months ended June 30, 2022 , the Company reported net income of $51.5 million , or $0.55 per diluted common share. These results compare to net income of $41.3 million , or $0.44 per diluted common share, for the first quarter of 2022. For the six months ended June 30, 2022 , First Financial had earnings per diluted share of $0.98 compared to $1.01 for the same period in 2021. Return on average assets for the second quarter of 2022 was 1.28% while return on average tangible common equity was 20.68%(1). These compare to returns on average assets of 1.03% and return on average tangible common equity of 14.93%(1) in the first quarter of 2022. Second quarter 2022 highlights include: Strong loan growth when compared to linked quarter(2) Loan balances increased $178.8 million compared to the first quarter; $191.4 million excluding PPP Growth of 7.8% on an annualized basis; 8.3% on an annualized basis excluding PPP Broad based portfolio growth, with large increases in C&I and residential real estate portfolios Net interest margin of 3.43%, or 3.47% on a fully tax-equivalent basis(1), exceeded expectations 30 bp increase to 3.47% from 3.17% in the first quarter due to higher asset yields resulting from higher interest rates 34 bp increase in loan yields offset modest 2 basis point increase in cost of interest bearing deposits Noninterest income of $49.8 million , or $50.8 million as adjusted(1) Record foreign exchange income of $13.5 million ; 32.7% increase from the linked quarter Leasing business income of $7.2 million ; 19.3% increase from the linked quarter Wealth management fees remained strong at $6.3 million Mortgage banking revenue increased $1.4 million ; 35.4% increase from the linked quarter Other noninterest income increased $2.3 million ; 65.9% increase from the linked quarter driven by investments in limited partnerships Adjusted(1) for $1.1 million loss on investment securities (1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation tothe GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. (2) The consolidated balance sheets at June 30, 2022 , March 31, 2022 and December 31, 2021 include assets acquired and liabilities assumed in the Summit Financial transaction. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. Noninterest expenses of $103.2 million , or $102.4 million as adjusted(1) Adjustments(1) include $0.1 million of acquisition related costs and $0.7 million of other costs not expected to recur such as severance and branch consolidation costs Slight increase in expenses driven by higher salaries and benefits tied to elevated fee income Efficiency ratio of 61.8%; 60.9% as adjusted(1) Total Allowance for Credit Losses of $134.5 million ; Total quarterly provision recapture of $0.8 million Loans and leases - ACL of $117.9 million , 1.25% of total loans Unfunded Commitments - ACL of $16.7 million Provision recapture driven by stable credit quality Net charge-offs declined to 8 bps of average loans and leases Regulatory capital ratios remain in excess of internal targets Total capital ratio of 13.94% Tier 1 common equity increased 4 basis points to 10.91% Tangible common equity of 6.40%(1); decrease from linked quarter driven by decline in AOCI Tangible book value per share of $10.27 (1) Archie Brown , President and CEO, commented on the quarter, "I am extremely pleased with our performance in the second quarter. Earnings improved from the first quarter as our asset sensitive balance sheet was positively impacted by recent rate increases. In addition, credit quality was stable with lower net charge-offs and nonaccrual loan balances. This led to a small provision recapture for the quarter." Mr. Brown continued, "We were encouraged by our strong fee income performance for the quarter. Total fee income surpassed our expectations due to record foreign exchange income, strong income from limited partnership investments and growing leasing business income. While second quarter mortgage banking income increased 35% from the linked quarter, we continue to experience headwinds due to the rapid rise in interest rates. In addition, recent overdraft program changes led to a modest reduction in deposit account service charges during the second quarter and we expect further decline due to these program changes in the coming periods." Mr. Brown commented on loan growth, "We were very pleased with loan growth in the second quarter. Loans (excluding PPP) increased by $191 million , or 8.3%, on an annualized basis. Loan growth was broad based, with increases in the C&I, retail mortgage and consumer portfolios. This more than offset a decline in the ICRE portfolio, which was driven by elevated prepayments. In addition, we were also pleased with Summit's growth in the quarter, including operating leases, which increased $21 million , or 33.5%, during the period. Loan origination activity remains strong as we head into the third quarter." Mr. Brown concluded, "I want to thank our associates for their excellent performance so far this year. As we head into the back half of the year, we are optimistic that our balance sheet is positioned to further benefit from additional rate increases and loan activity remains strong. We remain diligent in our credit monitoring and are prepared to manage a downturn in the economy should it occur later in the interest rate cycle." Full detail of the Company's second quarter 2022 performance is provided in the accompanying financial statements and slide presentation. Teleconference / Webcast Information First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, July 22, 2022 at 8:30 a.m. Eastern Time . Members of the public who would like to listen to the conference call should dial (844) 200-6205 ( U.S. toll free), (646) 904-5544 ( U.S. local) or +1 (929) 526-1599 (International), access code 099625. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (866) 813-9403 ( U.S. toll free), (929) 458-6194 ( U.S. local) and +44 204 525-0658 (all other locations), access code 049791. The recording will be available until August 5, 2022 . The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com . The webcast will be archived on the Investor Relations section of the Company's website for 12 months. Press Release and Additional Information on Website This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com . Use of Non-GAAP Financial Measures This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. Forward-Looking Statements Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements. As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; Management's ability to effectively execute its business plans; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period; the effect of changes in accounting policies and practices; changes in consumer spending, borrowing and saving and changes in unemployment; changes in customers' performance and creditworthiness; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and our ability to develop and execute effective business plans and strategies. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2021 , as well as our other filings with the SEC , which are available on the SEC website at www.sec.gov All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement. About First Financial Bancorp . First Financial Bancorp . is a Cincinnati, Ohio based bank holding company. As of June 30, 2022 , the Company had $16.2 billion in assets, $9.4 billion in loans, $12.3 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 $3.0 billion in assets under management as of June 30, 2022 . The Company operated 135 full service banking centers as of June 30, 2022 , primarily 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, Six months ended, June 30 , Mar. 31 , Dec. 31 , Sep. 30 , June 30 , June 30 , 2022 2022 2021 2021 2021 2022 2021 RESULTS OF OPERATIONS Net income $ 51,520 $ 41,301 $ 46,945 $ 60,012 $ 50,888 $ 92,821 $ 98,203 Net earnings per share - basic $ 0.55 $ 0.44 $ 0.51 $ 0.64 $ 0.53 $ 0.99 $ 1.02 Net earnings per share - diluted $ 0.55 $ 0.44 $ 0.50 $ 0.63 $ 0.52 $ 0.98 $ 1.01 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 1.28 % 1.03 % 1.16 % 1.49 % 1.26 % 1.16 % 1.23 % Return on average shareholders' equity 9.84 % 7.53 % 8.31 % 10.53 % 9.02 % 8.66 % 8.73 % Return on average tangible shareholders' equity (1) 20.68 % 14.93 % 15.11 % 19.03 % 16.31 % 17.65 % 15.78 % Net interest margin 3.43 % 3.12 % 3.19 % 3.28 % 3.27 % 3.27 % 3.31 % Net interest margin (fully tax equivalent) (1)(2) 3.47 % 3.17 % 3.23 % 3.32 % 3.31 % 3.32 % 3.35 % Ending shareholders' equity as a percent of ending assets 12.74 % 13.35 % 13.83 % 14.01 % 14.15 % 12.74 % 14.15 % Ending tangible shareholders' equity as a percent of: Ending tangible assets (1) 6.40 % 6.95 % 7.58 % 8.21 % 8.37 % 6.40 % 8.37 % Risk-weighted assets (1) 8.09 % 8.85 % 9.91 % 10.76 % 11.12 % 8.09 % 11.12 % Average shareholders' equity as a percent of average assets 12.97 % 13.75 % 13.98 % 14.14 % 13.96 % 13.36 % 14.06 % Average tangible shareholders' equity as a percent of average tangible assets (1) 6.62 % 7.44 % 8.20 % 8.35 % 8.23 % 7.03 % 8.30 % Book value per share $ 21.90 $ 22.63 $ 23.99 $ 23.85 $ 23.59 $ 21.90 $ 23.59 Tangible book value per share (1) $ 10.27 $ 10.97 $ 12.26 $ 13.09 $ 13.08 $ 10.27 $ 13.08 Common equity tier 1 ratio (3) 10.91 % 10.87 % 10.84 % 11.54 % 11.78 % 10.91 % 11.78 % Tier 1 ratio (3) 11.28 % 11.24 % 11.22 % 11.92 % 12.16 % 11.28 % 12.16 % Total capital ratio (3) 13.94 % 13.97 % 14.10 % 14.97 % 15.31 % 13.94 % 15.31 % Leverage ratio (3) 8.76 % 8.64 % 8.70 % 9.05 % 9.14 % 8.76 % 9.14 % AVERAGE BALANCE SHEET ITEMS Loans (4) $ 9,367,820 $ ,266,774 $ 9,283,227 $ 9,502,750 $ 9,831,965 $ 9,317,576 $ 9,891,579 Investment securities 4,118,287 4,308,059 4,343,513 4,189,253 4,130,207 4,212,649 3,957,559 Interest-bearing deposits with other banks 236,797 234,687 166,904 32,400 45,593 235,748 46,249 Total earning assets $ 13,722,904 $ 13,809,520 $ 13,793,644 $ 13,724,403 $ 14,007,765 $ 13,765,973 $ 13,895,387 Total assets $ 16,185,978 $ 16,184,919 $ 16,036,417 $ 15,995,808 $ 16,215,469 $ 16,185,451 $ 16,129,539 Noninterest-bearing deposits $ 4,224,842 $ 4,160,175 $ 4,191,457 $ 3,981,404 $ 4,003,626 $ 4,192,687 $ 3,922,288 Interest-bearing deposits 8,312,876 8,623,800 8,693,792 8,685,949 8,707,553 8,467,479 8,620,173 Total deposits $ 12,537,718 $ 12,783,975 $ 12,885,249 $ 12,667,353 $ 12,711,179 $ 12,660,166 $ 12,542,461 Borrowings $ 970,243 $ 701,287 $ 396,743 $ 562,964 $ 749,114 $ 836,508 $ 817,367 Shareholders' equity $ 2,099,670 $ 2,225,495 $ 2,241,820 $ 2,261,293 $ 2,263,687 $ 2,162,235 $ 2,268,193 CREDIT QUALITY RATIOS Allowance to ending loans 1.25 % 1.34 % 1.42 % 1.59 % 1.68 % 1.25 % 1.68 % Allowance to nonaccrual loans 302.87 % 273.09 % 272.76 % 225.73 % 184.77 % 302.87 % 184.77 % Allowance to nonperforming loans 235.08 % 231.98 % 219.96 % 192.35 % 162.12 % 235.08 % 162.12 % Nonperforming loans to total loans 0.53 % 0.58 % 0.65 % 0.83 % 1.03 % 0.53 % 1.03 % Nonaccrual loans to total loans 0.41 % 0.49 % 0.52 % 0.70 % 0.91 % 0.41 % 0.91 % Nonperforming assets to ending loans, plus OREO 0.53 % 0.58 % 0.65 % 0.83 % 1.04 % 0.53 % 1.04 % Nonperforming assets to total assets 0.31 % 0.33 % 0.37 % 0.49 % 0.62 % 0.31 % 0.62 % Classified assets to total assets 0.74 % 0.67 % 0.64 % 1.04 % 1.14 % 0.74 % 1.14 % Net charge-offs to average loans (annualized) 0.08 % 0.10 % 0.32 % 0.10 % 0.23 % 0.09 % 0.30 % (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, 2022 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 , 2022 2021 % Change 2022 2021 % Change Interest income Loans and leases, including fees $ 97,091 $ 97,494 (0.4) % $ 184,273 $ 196,425 (6.2) % Investment securities Taxable 23,639 19,524 21.1 % 45,735 38,131 19.9 % Tax-exempt 4,916 4,871 0.9 % 9,347 9,914 (5.7) % Total investment securities interest 28,555 24,395 17.1 % 55,082 48,045 14.6 % Other earning assets 497 25 N/M 618 53 N/M Total interest income 126,143 121,914 3.5 % 239,973 244,523 (1.9) % Interest expense Deposits 2,963 3,693 (19.8) % 5,586 8,026 (30.4) % Short-term borrowings 1,373 53 N/M 1,690 120 N/M Long-term borrowings 4,612 4,142 11.3 % 9,156 8,475 8.0 % Total interest expense 8,948 7,888 13.4 % 16,432 16,621 (1.1) % Net interest income 117,195 114,026 2.8 % 223,541 227,902 (1.9) % Provision for credit losses-loans and leases (4,267) (4,756) (10.3) % (9,856) (1,306) N/M Provision for credit losses-unfunded commitments 3,481 517 N/M 3,255 1,055 208.5 % Net interest income after provision for credit losses 117,981 118,265 (0.2) % 230,142 228,153 0.9 % Noninterest income Service charges on deposit accounts 7,648 7,537 1.5 % 15,377 14,683 4.7 % Trust and wealth management fees 6,311 6,216 1.5 % 12,371 11,846 4.4 % Bankcard income 3,823 3,732 2.4 % 7,160 6,860 4.4 % Client derivative fees 1,353 1,795 (24.6) % 2,152 3,351 (35.8) % Foreign exchange income 13,470 12,037 11.9 % 23,621 22,794 3.6 % Leasing business income 7,247 0 100.0 % 13,323 0 100.0 % Net gains from sales of loans 5,241 8,489 (38.3) % 9,113 17,943 (49.2) % Net gain (loss) on sale of investment securities 0 (265) (100.0) % 3 (431) (100.7) % Net gain (loss) on equity securities (1,054) 161 N/M (1,253) 273 N/M Other 5,747 3,285 74.9 % 9,212 5,990 53.8 % Total noninterest income 49,786 42,987 15.8 % 91,079 83,309 9.3 % Noninterest expenses Salaries and employee benefits 64,992 60,784 6.9 % 128,939 122,037 5.7 % Net occupancy 5,359 5,535 (3.2) % 11,105 11,239 (1.2) % Furniture and equipment 3,201 3,371 (5.0) % 6,768 7,340 (7.8) % Data processing 8,334 7,864 6.0 % 16,598 15,151 9.6 % Marketing 2,323 2,035 14.2 % 4,023 3,396 18.5 % Communication 670 746 (10.2) % 1,336 1,584 (15.7) % Professional services 2,214 2,029 9.1 % 4,373 3,479 25.7 % State intangible tax 1,090 1,201 (9.2) % 2,221 2,403 (7.6) % FDIC assessments 1,677 1,362 23.1 % 3,136 2,711 15.7 % Intangible amortization 2,915 2,480 17.5 % 5,829 4,959 17.5 % Leasing business expense 4,687 0 100.0 % 8,556 0 100.0 % Other 5,765 12,236 (52.9) % 13,148 17,850 (26.3) % Total noninterest expenses 103,227 99,643 3.6 % 206,032 192,149 7.2 % Income before income taxes 64,540 61,609 4.8 % 115,189 119,313 (3.5) % Income tax expense 13,020 10,721 21.4 % 22,368 21,110 6.0 % Net income $ 51,520 $ 50,888 1.2 % $ 92,821 $ 98,203 (5.5) % ADDITIONAL DATA Net earnings per share - basic $ 0.55 $ 0.53 $ 0.99 $ 1.02 Net earnings per share - diluted $ 0.55 $ 0.52 $ 0.98 $ 1.01 Dividends declared per share $ 0.23 $ 0.23 $ 0.46 $ 0.46 Return on average assets 1.28 % 1.26 % 1.16 % 1.23 % Return on average shareholders' equity 9.84 % 9.02 % 8.66 % 8.73 % Interest income $ 126,143 $ 121,914 3.5 % $ 239,973 $ 244,523 (1.9) % Tax equivalent adjustment 1,625 1,619 0.4 % 3,092 3,271 (5.5) % Interest income - tax equivalent 127,768 123,533 3.4 % 243,065 247,794 (1.9) % Interest expense 8,948 7,888 13.4 % 16,432 16,621 (1.1) % Net interest income - tax equivalent $ 118,820 $ 115,645 2.7 % $ 226,633 $ 231,173 (2.0) % Net interest margin 3.43 % 3.27 % 3.27 % 3.31 % Net interest margin (fully tax equivalent) (1) 3.47 % 3.31 % 3.32 % 3.35 % Full-time equivalent employees 2,096 2,053 (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) 2022 Second First Year to % Change Quarter Quarter Date Linked Qtr. Interest income Loans and leases, including fees $ 97,091 $ 87,182 $ 184,273 11.4 % Investment securities Taxable 23,639 22,096 45,735 7.0 % Tax-exempt 4,916 4,431 9,347 10.9 % Total investment securities interest 28,555 26,527 55,082 7.6 % Other earning assets 497 121 618 310.7 % Total interest income 126,143 113,830 239,973 10.8 % Interest expense Deposits 2,963 2,623 5,586 13.0 % Short-term borrowings 1,373 317 1,690 333.1 % Long-term borrowings 4,612 4,544 9,156 1.5 % Total interest expense 8,948 7,484 16,432 19.6 % Net interest income 117,195 106,346 223,541 10.2 % Provision for credit losses-loans and leases (4,267) (5,589) (9,856) (23.7) % Provision for credit losses-unfunded commitments 3,481 (226) 3,255 N/M Net interest income after provision for credit losses 117,981 112,161 230,142 5.2 % Noninterest income Service charges on deposit accounts 7,648 7,729 15,377 (1.0) % Trust and wealth management fees 6,311 6,060 12,371 4.1 % Bankcard income 3,823 3,337 7,160 14.6 % Client derivative fees 1,353 799 2,152 69.3 % Foreign exchange income 13,470 10,151 23,621 32.7 % Leasing business income 7,247 6,076 13,323 19.3 % Net gains from sales of loans 5,241 3,872 9,113 35.4 % Net gain (loss) on sale of investment securities 0 3 3 (100.0) % Net gain (loss) on equity securities (1,054) (199) (1,253) 429.6 % Other 5,747 3,465 9,212 65.9 % Total noninterest income 49,786 41,293 91,079 20.6 % Noninterest expenses Salaries and employee benefits 64,992 63,947 128,939 1.6 % Net occupancy 5,359 5,746 11,105 (6.7) % Furniture and equipment 3,201 3,567 6,768 (10.3) % Data processing 8,334 8,264 16,598 0.8 % Marketing 2,323 1,700 4,023 36.6 % Communication 670 666 1,336 0.6 % Professional services 2,214 2,159 4,373 2.5 % State intangible tax 1,090 1,131 2,221 (3.6) % FDIC assessments 1,677 1,459 3,136 14.9 % Intangible amortization 2,915 2,914 5,829 0.0 % Leasing business expense 4,687 3,869 8,556 21.1 % Other 5,765 7,383 13,148 (21.9) % Total noninterest expenses 103,227 102,805 206,032 0.4 % Income before income taxes 64,540 50,649 115,189 27.4 % Income tax expense 13,020 9,348 22,368 39.3 % Net income $ 51,520 $ 41,301 $ 92,821 24.7 % ADDITIONAL DATA Net earnings per share - basic $ 0.55 $ 0.44 $ 0.99 Net earnings per share - diluted $ 0.55 $ 0.44 $ 0.98 Dividends declared per share $ 0.23 $ 0.23 $ 0.46 Return on average assets 1.28 % 1.03 % 1.16 % Return on average shareholders' equity 9.84 % 7.53 % 8.66 % Interest income $ 126,143 $ 113,830 $ 239,973 10.8 % Tax equivalent adjustment 1,625 1,467 3,092 10.8 % Interest income - tax equivalent 127,768 115,297 243,065 10.8 % Interest expense 8,948 7,484 16,432 19.6 % Net interest income - tax equivalent $ 118,820 $ 107,813 $ 226,633 10.2 % Net interest margin 3.43 % 3.12 % 3.27 % Net interest margin (fully tax equivalent) (1) 3.47 % 3.17 % 3.32 % Full-time equivalent employees 2,096 2,050 (2) (1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. (2) Includes 65 FTE from Summit acquisition. FIRST FINANCIAL BANCORP . CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) 2021 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income Loans and leases, including fees $ 92,682 $ 96,428 $ 97,494 $ 98,931 $ 385,535 Investment securities Taxable 20,993 20,088 19,524 18,607 79,212 Tax-exempt 4,127 4,282 4,871 5,043 18,323 Total investment securities interest 25,120 24,370 24,395 23,650 97,535 Other earning assets 71 23 25 28 147 Total interest income 117,873 120,821 121,914 122,609 483,217 Interest expense Deposits 3,089 3,320 3,693 4,333 14,435 Short-term borrowings 10 68 53 67 198 Long-term borrowings 3,968 4,023 4,142 4,333 16,466 Total interest expense 7,067 7,411 7,888 8,733 31,099 Net interest income 110,806 113,410 114,026 113,876 452,118 Provision for credit losses-loans and leases (9,525) (8,193) (4,756) 3,450 (19,024) Provision for credit losses-unfunded commitments 1,799 (1,951) 517 538 903 Net interest income after provision for credit losses 118,532 123,554 118,265 109,888 470,239 Noninterest income Service charges on deposit accounts 8,645 8,548 7,537 7,146 31,876 Trust and wealth management fees 6,038 5,896 6,216 5,630 23,780 Bankcard income 3,602 3,838 3,732 3,128 14,300 Client derivative fees 2,303 2,273 1,795 1,556 7,927 Foreign exchange income 12,808 9,191 12,037 10,757 44,793 Leasing business income 0 0 0 0 0 Net gains from sales of loans 6,492 8,586 8,489 9,454 33,021 Net gain (loss) on sale of investment securities (14) (314) (265) (166) (759) Net gain (loss) on equity securities 321 108 161 112 702 Other 5,465 4,411 3,285 2,705 15,866 Total noninterest income 45,660 42,537 42,987 40,322 171,506 Noninterest expenses Salaries and employee benefits 62,170 61,717 60,784 61,253 245,924 Net occupancy 5,332 5,571 5,535 5,704 22,142 Furniture and equipment 3,161 3,318 3,371 3,969 13,819 Data processing 8,261 7,951 7,864 7,287 31,363 Marketing 2,152 2,435 2,035 1,361 7,983 Communication 677 669 746 838 2,930 Professional services 5,998 2,199 2,029 1,450 11,676 State intangible tax 651 1,202 1,201 1,202 4,256 FDIC assessments 1,453 1,466 1,362 1,349 5,630 Intangible amortization 2,401 2,479 2,480 2,479 9,839 Leasing business expense 0 0 0 0 0 Other 17,349 10,051 12,236 5,614 45,250 Total noninterest expenses 109,605 99,058 99,643 92,506 400,812 Income before income taxes 54,587 67,033 61,609 57,704 240,933 Income tax expense (benefit) 7,642 7,021 10,721 10,389 35,773 Net income $ 46,945 $ 60,012 $ 50,888 $ 47,315 $ 205,160 ADDITIONAL DATA Net earnings per share - basic $ 0.51 $ 0.64 $ 0.53 $ 0.49 $ 2.16 Net earnings per share - diluted $ 0.50 $ 0.63 $ 0.52 $ 0.48 $ 2.14 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 Return on average assets 1.16 % 1.49 % 1.26 % 1.20 % 1.28 % Return on average shareholders' equity 8.31 % 10.53 % 9.02 % 8.44 % 9.08 % Interest income $ 117,873 $ 120,821 $ 121,914 $ 122,609 $ 483,217 Tax equivalent adjustment 1,386 1,434 1,619 1,652 6,091 Interest income - tax equivalent 119,259 122,255 123,533 124,261 489,308 Interest expense 7,067 7,411 7,888 8,733 31,099 Net interest income - tax equivalent $ 112,192 $ 114,844 $ 115,645 $ 115,528 $ 458,209 Net interest margin 3.19 % 3.28 % 3.27 % 3.35 % 3.27 % Net interest margin (fully tax equivalent) (1) 3.23 % 3.32 % 3.31 % 3.40 % 3.31 % Full-time equivalent employees 1,994 2,026 2,053 2,063 (1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. FIRST FINANCIAL BANCORP . CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands) (Unaudited) June 30 , Mar. 31 , Dec. 31 , Sep. 30 , June 30 , % Change % Change 2022 2022 2021 2021 2021 Linked Qtr. Comp Qtr. ASSETS Cash and due from banks $ 302,549 $ 230,428 $ 220,031 $ 209,748 $ 206,918 31.3 % 46.2 % Interest-bearing deposits with other banks 184,974 227,147 214,811 29,799 38,610 (18.6) % 379.1 % Investment securities available-for-sale 3,843,580 3,957,882 4,207,846 4,114,094 3,955,839 (2.9) % (2.8) % Investment securities held-to-maturity 88,057 92,597 98,420 103,886 112,456 (4.9) % (21.7) % Other investments 132,151 114,563 102,971 97,831 129,432 15.4 % 2.1 % Loans held for sale 22,044 12,670 29,482 33,835 31,546 74.0 % (30.1) % Loans and leases Commercial and industrial 2,927,175 2,800,209 2,720,028 2,602,848 2,701,203 4.5 % 8.4 % Lease financing 146,639 125,867 109,624 67,855 68,229 16.5 % 114.9 % Construction real estate 449,734 479,744 455,894 477,004 630,329 (6.3) % (28.7) % Commercial real estate 4,007,037 4,031,484 4,226,614 4,438,374 4,332,561 (0.6) % (7.5) % Residential real estate 965,387 913,838 896,069 922,492 932,112 5.6 % 3.6 % Home equity 725,700 707,973 708,399 709,050 711,756 2.5 % 2.0 % Installment 146,680 132,197 119,454 96,077 89,143 11.0 % 64.5 % Credit card 52,065 50,305 52,217 47,231 46,177 3.5 % 12.8 % Total loans 9,420,417 9,241,617 9,288,299 9,360,931 9,511,510 1.9 % (1.0) % Less: Allowance for credit losses (117,885) (124,130) (131,992) (148,903) (159,590) (5.0) % (26.1) % Net loans 9,302,532 9,117,487 9,156,307 9,212,028 9,351,920 2.0 % (0.5) % Premises and equipment 191,099 190,975 193,040 192,580 192,238 0.1 % (0.6) % Operating leases 82,659 61,927 60,811 0 0 33.5 % 100.0 % Goodwill 999,959 999,959 1,000,749 937,771 937,771 0.0 % 6.6 % Other intangibles 82,889 85,891 88,898 56,811 59,391 (3.5) % 39.6 % Accrued interest and other assets 1,011,221 917,624 955,775 968,210 1,021,798 10.2 % (1.0) % Total Assets $ 16,243,714 $ 16,009,150 $ 16,329,141 $ 15,956,593 $ 16,037,919 1.5 % 1.3 % LIABILITIES Deposits Interest-bearing demand $ 3,096,365 $ 3,246,646 $ 3,198,745 $ 2,916,860 $ 2,963,151 (4.6) % 4.5 % Savings 4,029,717 4,188,867 4,157,374 4,223,905 4,093,229 (3.8) % (1.6) % Time 1,026,918 1,121,966 1,330,263 1,517,419 1,548,109 (8.5) % (33.7) % Total interest-bearing deposits 8,153,000 8,557,479 8,686,382 8,658,184 8,604,489 (4.7) % (5.2) % Noninterest-bearing 4,124,111 4,261,429 4,185,572 4,019,197 3,901,691 (3.2) % 5.7 % Total deposits 12,277,111 12,818,908 12,871,954 12,677,381 12,506,180 (4.2) % (1.8) % Federal funds purchased and securities sold under agreements to repurchase 0 0 51,203 81,850 255,791 0.0 % (100.0) % FHLB short-term borrowings 896,000 185,000 225,000 107,000 217,000 384.3 % 312.9 % Other 0 0 20,000 0 0 0.0 % 0.0 % Total short-term borrowings 896,000 185,000 296,203 188,850 472,791 384.3 % 89.5 % Long-term debt 358,578 379,840 409,832 313,230 313,039 (5.6) % 14.5 % Total borrowed funds 1,254,578 564,840 706,035 502,080 785,830 122.1 % 59.7 % Accrued interest and other liabilities 643,355 487,957 492,210 540,962 476,402 31.8 % 35.0 % Total Liabilities 14,175,044 13,871,705 14,070,199 13,720,423 13,768,412 2.2 % 3.0 % SHAREHOLDERS' EQUITY Common stock 1,637,237 1,634,903 1,640,358 1,637,065 1,635,470 0.1 % 0.1 % Retained earnings 887,006 857,178 837,473 812,082 773,857 3.5 % 14.6 % Accumulated other comprehensive income (loss) (243,328) (142,477) (433) 14,230 30,735 70.8 % N/M Treasury stock, at cost (212,245) (212,159) (218,456) (227,207) (170,555) 0.0 % 24.4 % Total Shareholders' Equity 2,068,670 2,137,445 2,258,942 2,236,170 2,269,507 (3.2) % (8.8) % Total Liabilities and Shareholders' Equity $ 16,243,714 $ 16,009,150 $ 16,329,141 $ 15,956,593 $ 16,037,919 1.5 % 1.3 % 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 , 2022 2022 2021 2021 2021 2022 2021 ASSETS Cash and due from banks $ 305,803 $ 248,517 $ 253,091 $ 245,212 $ 237,964 $ 277,318 $ 235,135 Interest-bearing deposits with other banks 236,797 234,687 166,904 32,400 45,593 235,748 46,249 Investment securities 4,118,287 4,308,059 4,343,513 4,189,253 4,130,207 4,212,649 3,957,559 Loans held for sale 15,446 15,589 24,491 28,365 28,348 15,517 29,015 Loans and leases Commercial and industrial 2,884,373 2,736,613 2,552,686 2,634,306 2,953,185 2,810,901 2,991,239 Lease financing 134,334 115,703 67,537 67,159 66,124 125,070 68,304 Construction real estate 460,609 474,278 460,588 567,091 630,351 467,406 638,955 Commercial real estate 4,025,493 4,139,072 4,391,328 4,413,003 4,372,679 4,081,969 4,356,106 Residential real estate 936,165 903,567 917,399 937,969 940,600 919,956 960,548 Home equity 716,219 703,714 709,954 710,794 707,409 710,001 716,720 Installment 140,145 125,579 106,188 93,937 84,768 132,902 83,082 Credit card 55,036 52,659 53,056 50,126 48,501 53,854 47,610 Total loans 9,352,374 9,251,185 9,258,736 9,474,385 9,803,617 9,302,059 9,862,564 Less: Allowance for credit losses (123,950) (129,601) (144,756) (157,727) (169,979) (126,760) (173,899) Net loans 9,228,424 9,121,584 9,113,980 9,316,658 9,633,638 9,175,299 9,688,665 Premises and equipment 191,895 192,832 192,941 193,775 200,558 192,361 203,576 Operating leases 73,862 61,297 659 0 0 67,614 0 Goodwill 999,958 1,000,238 938,453 937,771 937,771 1,000,097 937,771 Other intangibles 84,577 87,602 56,120 58,314 60,929 86,081 62,222 Accrued interest and other assets 930,929 914,514 946,265 994,060 940,461 922,767 969,347 Total Assets $ 16,185,978 $ 16,184,919 $ 16,036,417 $ 15,995,808 $ 16,215,469 $ 16,185,451 $ 16,129,539 LIABILITIES Deposits Interest-bearing demand $ 3,180,846 $ 3,246,919 $ 3,069,416 $ 2,960,388 $ 2,973,930 $ 3,213,700 $ 2,961,376 Savings 4,076,380 4,145,615 4,195,504 4,150,610 4,096,077 4,110,806 3,956,471 Time 1,055,650 1,231,266 1,428,872 1,574,951 1,637,546 1,142,973 1,702,326 Total interest-bearing deposits 8,312,876 8,623,800 8,693,792 8,685,949 8,707,553 8,467,479 8,620,173 Noninterest-bearing 4,224,842 4,160,175 4,191,457 3,981,404 4,003,626 4,192,687 3,922,288 Total deposits 12,537,718 12,783,975 12,885,249 12,667,353 12,711,179 12,660,166 12,542,461 Federal funds purchased and securities sold under agreements to repurchase 24,229 45,358 79,382 186,401 194,478 34,735 189,508 FHLB short-term borrowings 586,846 257,800 2,445 63,463 40,846 423,232 53,961 Other 0 12,889 654 0 0 6,409 0 Total short-term borrowings 611,075 316,047 82,481 249,864 235,324 464,376 243,469 Long-term debt 359,168 385,240 314,262 313,100 513,790 372,132 573,898 Total borrowed funds 970,243 701,287 396,743 562,964 749,114 836,508 817,367 Accrued interest and other liabilities 578,347 474,162 512,605 504,198 491,489 526,542 501,518 Total Liabilities 14,086,308 13,959,424 13,794,597 13,734,515 13,951,782 14,023,216 13,861,346 SHAREHOLDERS' EQUITY Common stock 1,635,990 1,638,321 1,637,828 1,635,833 1,633,950 1,637,149 1,635,409 Retained earnings 866,910 841,652 822,500 783,760 754,456 854,351 740,481 Accumulated other comprehensive loss (190,949) (38,448) 8,542 36,917 25,832 (115,120) 33,997 Treasury stock, at cost (212,281) (216,030) (227,050) (195,217) (150,551) (214,145) (141,694) Total Shareholders' Equity 2,099,670 2,225,495 2,241,820 2,261,293 2,263,687 2,162,235 2,268,193 Total Liabilities and Shareholders' Equity $ 16,185,978 $ 16,184,919 $ 16,036,417 $ 15,995,808 $ 16,215,469 $ 16,185,451 $ 16,129,539 FIRST FINANCIAL BANCORP . NET INTEREST MARGIN RATE/VOLUME ANALYSIS (Dollars in thousands) (Unaudited) Quarterly Averages Year-to-Date Averages June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Balance Interest Yield Balance Interest Yield Balance Interest Yield Balance Yield Balance Yield Earning assets Investments: Investment securities $ 4,118,287 $ 28,555 2.78 % $ 4,308,059 $ 26,527 2.50 % $ 4,130,207 $ 24,395 2.37 % $ 4,212,649 2.64 % $ 3,957,559 2.45 % Interest-bearing deposits with other banks 236,797 497 0.84 % 234,687 121 0.21 % 45,593 25 0.22 % 235,748 0.53 % 46,249 0.23 % Gross loans (1) 9,367,820 97,091 4.16 % 9,266,774 87,182 3.82 % 9,831,965 97,494 3.98 % 9,317,576 3.99 % 9,891,579 4.00 % Total earning assets 13,722,904 126,143 3.69 % 13,809,520 113,830 3.34 % 14,007,765 121,914 3.49 % 13,765,973 3.52 % 13,895,387 3.55 % Nonearning assets Allowance for credit losses (123,950) (129,601) (169,979) (126,760) (173,899) Cash and due from banks 305,803 248,517 237,964 277,318 235,135 Accrued interest and other assets 2,281,221 2,256,483 2,139,719 2,268,920 2,172,916 Total assets $ 16,185,978 $ 16,184,919 $ 16,215,469 $ 16,185,451 $ 16,129,539 Interest-bearing liabilities Deposits: Interest-bearing demand $ 3,180,846 $ 842 0.11 % $ 3,246,919 $ 492 0.06 % $ 2,973,930 $ 489 0.07 % $ 3,213,700 0.08 % $ 2,961,376 0.07 % Savings 4,076,380 1,003 0.10 % 4,145,615 850 0.08 % 4,096,077 1,106 0.11 % 4,110,806 0.09 % 3,956,471 0.12 % Time 1,055,650 1,118 0.42 % 1,231,266 1,281 0.42 % 1,637,546 2,098 0.51 % 1,142,973 0.42 % 1,702,326 0.56 % Total interest-bearing deposits 8,312,876 2,963 0.14 % 8,623,800 2,623 0.12 % 8,707,553 3,693 0.17 % 8,467,479 0.13 % 8,620,173 0.19 % Borrowed funds Short-term borrowings 611,075 1,373 0.90 % 316,047 317 0.41 % 235,324 53 0.09 % 464,376 0.73 % 243,469 0.10 % Long-term debt 359,168 4,612 5.15 % 385,240 4,544 4.78 % 513,790 4,142 3.23 % 372,132 4.96 % 573,898 2.98 % Total borrowed funds 970,243 5,985 2.47 % 701,287 4,861 2.81 % 749,114 4,195 2.25 % 836,508 2.61 % 817,367 2.12 % Total interest-bearing liabilities 9,283,119 8,948 0.39 % 9,325,087 7,484 0.33 % 9,456,667 7,888 0.33 % 9,303,987 0.36 % 9,437,540 0.36 % Noninterest-bearing liabilities Noninterest-bearing demand deposits 4,224,842 4,160,175 4,003,626 4,192,687 3,922,288 Other liabilities 578,347 474,162 491,489 526,542 501,518 Shareholders' equity 2,099,670 2,225,495 2,263,687 2,162,235 2,268,193 Total liabilities & shareholders' equity $ 16,185,978 $ 16,184,919 $ 16,215,469 $ 16,185,451 $ 16,129,539 Net interest income $ 117,195 $ 106,346 $ 114,026 $ 223,541 $ 227,902 Net interest spread 3.30 % 3.01 % 3.16 % 3.16 % 3.19 % Net interest margin 3.43 % 3.12 % 3.27 % 3.27 % 3.31 % Tax equivalent adjustment 0.04 % 0.05 % 0.04 % 0.05 % 0.04 % Net interest margin (fully tax equivalent) 3.47 % 3.17 % 3.31 % 3.32 % 3.35 % (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 $ 3,016 $ (988) $ 2,028 $ 4,243 $ (83) $ 4,160 $ 3,702 $ 3,335 $ 7,037 Interest-bearing deposits with other banks 366 10 376 71 401 472 68 497 565 Gross loans (2) 7,806 2,103 9,909 4,408 (4,811) (403) (800) (11,352) (12,152) Total earning assets 11,188 1,125 12,313 8,722 (4,493) 4,229 2,970 (7,520) (4,550) Interest-bearing liabilities Total interest-bearing deposits $ 417 $ (77) $ 340 $ (589) $ (141) $ (730) $ (2,339) $ (101) $ (2,440) Borrowed funds Short-term borrowings 385 671 1,056 476 844 1,320 766 804 1,570 Long-term debt 348 (280) 68 2,455 (1,985) 470 5,645 (4,964) 681 Total borrowed funds 733 391 1,124 2,931 (1,141) 1,790 6,411 (4,160) 2,251 Total interest-bearing liabilities 1,150 314 1,464 2,342 (1,282) 1,060 4,072 (4,261) (189) Net interest income (1) $ 10,038 $ 811 $ 10,849 $ 6,380 $ (3,211) $ 3,169 $ (1,102) $ (3,259) $ (4,361) (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 , 2022 2022 2021 2021 2021 2022 2021 ALLOWANCE FOR CREDIT LOSS ACTIVITY Balance at beginning of period $ 124,130 $ 131,992 $ 148,903 $ 159,590 $ 169,923 $ 131,992 $ 175,679 Purchase accounting ACL for PCD 0 0 17 0 0 0 0 Provision for credit losses (4,267) (5,589) (9,525) (8,193) (4,756) (9,856) (1,306) Gross charge-offs Commercial and industrial 773 2,845 1,364 2,617 3,729 3,618 11,639 Lease financing 8 131 0 0 0 139 0 Construction real estate 0 0 1,496 0 0 0 2 Commercial real estate 3,419 0 9,150 1,030 2,041 3,419 3,291 Residential real estate 4 22 6 74 46 26 47 Home equity 22 21 22 200 240 43 851 Installment 361 177 184 37 77 538 113 Credit card 212 246 149 230 179 458 401 Total gross charge-offs 4,799 3,442 12,371 4,188 6,312 8,241 16,344 Recoveries Commercial and industrial 177 379 201 869 205 556 542 Lease financing 3 33 0 0 0 36 0 Construction real estate 0 0 0 0 3 0 3 Commercial real estate 2,194 222 4,292 223 75 2,416 270 Residential real estate 34 90 74 56 54 124 98 Home equity 360 265 303 426 317 625 494 Installment 47 21 27 53 37 68 71 Credit card 6 159 71 67 44 165 83 Total recoveries 2,821 1,169 4,968 1,694 735 3,990 1,561 Total net charge-offs 1,978 2,273 7,403 2,494 5,577 4,251 14,783 Ending allowance for credit losses $ 117,885 $ 124,130 $ 131,992 $ 148,903 $ 159,590 $ 117,885 $ 159,590 NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) Commercial and industrial 0.08 % 0.37 % 0.18 % 0.26 % 0.48 % 0.22 % 0.75 % Lease financing 0.01 % 0.34 % 0.00 % 0.00 % 0.00 % 0.17 % 0.00 % Construction real estate 0.00 % 0.00 % 1.29 % 0.00 % 0.00 % 0.00 % 0.00 % Commercial real estate 0.12 % (0.02) % 0.44 % 0.07 % 0.18 % 0.05 % 0.14 % Residential real estate (0.01) % (0.03) % (0.03) % 0.01 % 0.00 % (0.02) % (0.01) % Home equity (0.19) % (0.14) % (0.16) % (0.13) % (0.04) % (0.17) % 0.10 % Installment 0.90 % 0.50 % 0.59 % (0.07) % 0.19 % 0.71 % 0.10 % Credit card 1.50 % 0.67 % 0.58 % 1.29 % 1.12 % 1.10 % 1.35 % Total net charge-offs 0.08 % 0.10 % 0.32 % 0.10 % 0.23 % 0.09 % 0.30 % COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS Nonaccrual loans (1) Commercial and industrial $ 11,675 $ 14,390 $ 17,362 $ 15,160 $ 27,426 $ 11,675 $ 27,426 Lease financing 217 249 203 0 16 217 16 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 14,650 19,843 19,512 38,564 45,957 14,650 45,957 Residential real estate 8,879 7,432 8,305 9,416 9,480 8,879 9,480 Home equity 3,331 3,377 2,922 2,735 3,376 3,331 3,376 Installment 170 163 88 91 115 170 115 Nonaccrual loans 38,922 45,454 48,392 65,966 86,370 38,922 86,370 Accruing troubled debt restructurings (TDRs) 11,225 8,055 11,616 11,448 12,070 11,225 12,070 Total nonperforming loans 50,147 53,509 60,008 77,414 98,440 50,147 98,440 Other real estate owned (OREO) 22 72 98 340 340 22 340 Total nonperforming assets 50,169 53,581 60,106 77,754 98,780 50,169 98,780 Accruing loans past due 90 days or more 142 180 137 104 155 142 155 Total underperforming assets $ 50,311 $ 53,761 $ 60,243 $ 77,858 $ 98,935 $ 50,311 $ 98,935 Total classified assets $ 119,769 $ 106,839 $ 104,815 $ 165,462 $ 182,516 $ 119,769 $ 182,516 CREDIT QUALITY RATIOS Allowance for credit losses to Nonaccrual loans 302.87 % 273.09 % 272.76 % 225.73 % 184.77 % 302.87 % 184.77 % Nonperforming loans 235.08 % 231.98 % 219.96 % 192.35 % 162.12 % 235.08 % 162.12 % Total ending loans 1.25 % 1.34 % 1.42 % 1.59 % 1.68 % 1.25 % 1.68 % Nonperforming loans to total loans 0.53 % 0.58 % 0.65 % 0.83 % 1.03 % 0.53 % 1.03 % Nonaccrual loans to total loans 0.41 % 0.49 % 0.52 % 0.70 % 0.91 % 0.41 % 0.91 % Nonperforming assets to Ending loans, plus OREO 0.53 % 0.58 % 0.65 % 0.83 % 1.04 % 0.53 % 1.04 % Total assets 0.31 % 0.33 % 0.37 % 0.49 % 0.62 % 0.31 % 0.62 % Nonperforming assets, excluding accruing TDRs to Ending loans, plus OREO 0.41 % 0.49 % 0.52 % 0.71 % 0.91 % 0.41 % 0.91 % Total assets 0.24 % 0.28 % 0.30 % 0.42 % 0.54 % 0.24 % 0.54 % Classified assets to total assets 0.74 % 0.67 % 0.64 % 1.04 % 1.14 % 0.74 % 1.14 % (1) Nonaccrual loans include nonaccrual TDRs of $9 .5 million, $16 .2 million, $16 .0 million, $20.3 million , and $21 .5 million, as of June 30, 2022 , March 31, 2022 , December 31, 2021 , September 30, 2021 , and June 30, 2021 , 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 , 2022 2022 2021 2021 2021 2022 2021 PER COMMON SHARE Market Price High $ 23.03 $ 26.73 $ 25.79 $ 24.06 $ 26.02 $ 26.73 $ 26.40 Low $ 19.09 $ 22.92 $ 22.89 $ 21.48 $ 23.35 $ 19.09 $ 17.62 Close $ 19.40 $ 23.05 $ 24.38 $ 23.41 $ 23.63 $ 19.40 $ 23.63 Average shares outstanding - basic 93,555,131 93,383,932 92,903,900 94,289,097 96,123,645 93,470,005 96,496,720 Average shares outstanding - diluted 94,449,817 94,263,925 93,761,909 95,143,930 97,009,712 94,357,392 97,366,640 Ending shares outstanding 94,448,792 94,451,496 94,149,240 93,742,797 96,199,509 94,448,792 96,199,509 Total shareholders' equity $ 2,068,670 $ ,137,445 $ 2,258,942 $ 2,236,170 $ 2,269,507 $ 2,068,670 $ 2,269,507 REGULATORY CAPITAL Preliminary Preliminary Common equity tier 1 capital $ 1,307,259 $ 1,272,115 $ 1,262,789 $ 1,316,059 $ 1,333,209 $ 1,307,259 $ 1,333,209 Common equity tier 1 capital ratio 10.91 % 10.87 % 10.84 % 11.54 % 11.78 % 10.91 % 11.78 % Tier 1 capital $ 1,351,287 $ 1,316,020 $ 1,306,571 $ 1,359,297 $ 1,376,333 $ 1,351,287 $ 1,376,333 Tier 1 ratio 11.28 % 11.24 % 11.22 % 11.92 % 12.16 % 11.28 % 12.16 % Total capital $ 1,670,367 $ 1,635,003 $ 1,642,549 $ 1,706,513 $ 1,732,930 $ 1,670,367 $ 1,732,930 Total capital ratio 13.94 % 13.97 % 14.10 % 14.97 % 15.31 % 13.94 % 15.31 % Total capital in excess of minimum requirement $ 412,432 $ 406,011 $ 419,754 $ 509,536 $ 544,478 $ 412,432 $ 544,478 Total risk-weighted assets $ 11,980,331 $ 11,704,681 $ 11,645,666 $ 11,399,782 $ 11,318,590 $ 11,980,331 $ 11,318,590 Leverage ratio 8.76 % 8.64 % 8.70 % 9.05 % 9.14 % 8.76 % 9.14 % OTHER CAPITAL RATIOS Ending shareholders' equity to ending assets 12.74 % 13.35 % 13.83 % 14.01 % 14.15 % 12.74 % 14.15 % Ending tangible shareholders' equity to ending tangible assets (1) 6.40 % 6.95 % 7.58 % 8.21 % 8.37 % 6.40 % 8.37 % Average shareholders' equity to average assets 12.97 % 13.75 % 13.98 % 14.14 % 13.96 % 13.36 % 14.06 % Average tangible shareholders' equity to average tangible assets (1) 6.62 % 7.44 % 8.20 % 8.35 % 8.23 % 7.03 % 8.30 % REPURCHASE PROGRAM (2) Shares repurchased 0 0 0 2,484,295 1,308,945 0 2,149,060 Average share repurchase price N/A N/A N/A $ 23.04 $ 25.11 N/A $ 23.66 Total cost of shares repurchased N/A N/A N/A $ 57,231 $ 32,864 N/A $ 50,846 (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-second-quarter-2022-financial-results-301591313.html SOURCE First Financial Bancorp .

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