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

About this update from First Financial Bancorp.

Earnings per diluted share of $0.64 ; $0.65 on an adjusted(1) basis Return on average assets of 1.38%; 1.40% on an adjusted(1) basis Net interest margin on FTE basis(1) of 4.10% Record fee income of $61.5 million Loan growth of $316.1 million ; 11.3% on an annualized basis Average deposit growth of $351.1 million ; 10.6% on an annualized basis Net charge-offs 0.15% of total loans; 23 bp decline from linked quarter Board of Directors approved quarterly dividend increase to $0.24 CINCINNATI , July 25, 2024 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2024 . For the three months ended June 30, 2024 , the Company reported net income of $60.8 million , or $0.64 per diluted common share. These results compare to net income of $50.7 million , or $0.53 per diluted common share, for the first quarter of 2024. For the six months ended June 30, 2024 , First Financial had earnings per diluted share of $1.17 compared to $1.43 for the same period in 2023. Return on average assets for the second quarter of 2024 was 1.38% while return on average tangible common equity was 20.57%(1). These compare to return on average assets of 1.18% and return on average tangible common equity of 17.35%(1) in the first quarter of 2024. Second quarter 2024 highlights include: Net interest margin of 4.06%, or 4.10% on a fully tax-equivalent basis(1) Unchanged from first quarter, exceeding expectations 14 bp increase in earning asset yields driven by 10 bp increase in loan yields and 22 bp increase in yield on the investment securities portfolio Cost of deposits increased 14 bp during second quarter; pace of increase moderated compared to 22 bp increase in first quarter Record noninterest income of $61.5 million , or $61.6 million as adjusted(1) Foreign exchange income increased $6.4 million , or 60.9% from first quarter Strong leasing business income of $16.8 million ; 15.3% increase from first quarter Record wealth management income; 7.4% increase from linked quarter Double digit percentage growth from linked quarter in mortgage banking and bankcard income Noninterest expenses of $123.6 million , or $122.5 million as adjusted(1); 1.2% increase from linked quarter Increase driven by variable compensation tied to fee income Second quarter adjustments(1) include $0.4 million of efficiency related costs and $0.8 million of other costs such as acquisition, severance and branch consolidation costs Efficiency ratio of 57.5%; 57.0% as adjusted(1) Solid loan growth during the quarter Loan balances increased $316.1 million compared to the linked quarter; 11.3% annualized growth Broad-based growth driven by C&I, Agile and Summit _________________________________________________________________________________________ (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. Strong average deposit growth during the quarter Average deposits increased $351.1 million , or 10.6% on an annualized basis Second quarter included approximately $100 million of seasonal public fund increases Growth in money market accounts, retail CDs and brokered CDs offset modest declines in noninterest bearing checking and savings balances Total Allowance for Credit Losses of $172.6 million ; Total quarterly provision expense of $16.4 million Loans and leases - ACL of $156.2 million ; ratio to total loans of 1.36% increased 7 bps from first quarter Unfunded Commitments - ACL of $16.4 million Provision expense driven by loan growth and downward credit migration; Classified assets 1.07% of total assets Annualized net charge-offs were 15 bps of total loans; 23 bps decline from linked quarter Capital ratios stable and strong Total capital ratio increased 16 bps to 14.47% Tier 1 common equity increased 11 bps to 11.78% Tangible common equity of 7.23%(1); 9.13%(1) excluding impact from AOCI Tangible book value per share of $12.94 (1); 3.5% increase from linked quarter Additionally, the board of directors approved a quarterly dividend of $0.24 per common share for the next regularly scheduled dividend, payable on September 16, 2024 to shareholders of record as of September 2, 2024 . Archie Brown , President and CEO, commented on the quarter, "We had an outstanding quarter. Adjusted(1) earnings per share were $0.65 per share, which resulted in an adjusted(1) return on assets of 1.40% and an adjusted(1) return on tangible common equity of 20.88%. Loan growth was exceptionally strong again this quarter with balances increasing by 11% on an annualized basis, and was a significant driver to the increase to net interest income. Growth was broad-based and was led by Commercial Banking. Similarly, average deposits grew approximately 11% for the period, with interest bearing deposits and a seasonal increase in public fund balances driving the increase. Our 4.10% tax equivalent net interest margin was unchanged from the first quarter and remains at or near the top of our peer group." Mr. Brown continued, "Total adjusted(1) revenue increased $14.4 million , or 7% compared to the linked quarter. Additionally, we posted record adjusted(1) noninterest income of $61.6 million . Growth in fee income was broad-based for the period with foreign exchange revenue growing more than 60% from the linked quarter. Leasing business income, mortgage banking and bankcard income all increased by double digit percentages and wealth management income posted another record quarter. Adjusted(1) expenses increased by 1.2% compared to the first quarter. The increase included a full quarter of Agile expenses, the impact of annual salary adjustments that occurred late in the first quarter and variable compensation tied to our record fee income. Through our workforce efficiency initiative, we have eliminated 90 full-time positions to date, and this work will continue through the remainder of the year." Mr. Brown commented on asset quality and the ACL, "I am pleased with the 23 basis point decline in net charge-offs to 15 basis points, which marks the third consecutive quarter that charge-offs have declined. We did experience some downward credit migration during the period, however this was not concentrated in any particular loan type, and nonperforming loans as a percentage of total assets was relatively flat compared to the prior quarter. Our ACL increased to 1.36% of total loans, and based on our outlook for loan growth and credit quality, we would expect provision to decline to levels approximating the first quarter in the coming periods." Mr. Brown concluded, "We are pleased to announce that our Board of Directors approved a $0.01 increase in the common dividend to $0.24 . The 4.3% dividend increase results in a dividend payout ratio within our target range of 35% - 40% of net income and increases our already attractive yield. I am encouraged with our operating performance through the first half of 2024 and look forward to continued success for the full year." Full detail of the Company's second 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, July 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), (609) 800-9099 ( U.S. toll), access code 5048068. The recording will be available until August 9, 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 June 30, 2024 , the Company had $18.2 billion in assets, $11.5 billion in loans, $13.7 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 June 30, 2024 . The Company operated 131 full service banking centers as of June 30, 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, Six months ended, June 30 , Mar. 31 , Dec. 31 , Sep. 30 , June 30 , June 30 , 2024 2024 2023 2023 2023 2024 2023 RESULTS OF OPERATIONS Net income $ 60,805 $ 50,689 $ 56,732 $ 63,061 $ 65,667 $ 111,494 $ 136,070 Net earnings per share - basic $ 0.64 $ 0.54 $ 0.60 $ 0.67 $ 0.70 $ 1.18 $ 1.45 Net earnings per share - diluted $ 0.64 $ 0.53 $ 0.60 $ 0.66 $ 0.69 $ 1.17 $ 1.43 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 1.38 % 1.18 % 1.31 % 1.48 % 1.55 % 1.28 % 1.62 % Return on average shareholders' equity 10.72 % 9.00 % 10.50 % 11.62 % 12.32 % 9.86 % 13.00 % Return on average tangible shareholders' equity (1) 20.57 % 17.35 % 21.36 % 23.60 % 25.27 % 18.97 % 27.08 % Net interest margin 4.06 % 4.05 % 4.21 % 4.28 % 4.43 % 4.06 % 4.47 % Net interest margin (fully tax equivalent) (1)(2) 4.10 % 4.10 % 4.26 % 4.33 % 4.48 % 4.10 % 4.51 % Ending shareholders' equity as a percent of ending assets 12.81 % 12.99 % 12.94 % 12.49 % 12.54 % 12.81 % 12.54 % Ending tangible shareholders' equity as a percent of: Ending tangible assets (1) 7.23 % 7.23 % 7.17 % 6.50 % 6.56 % 7.23 % 6.56 % Risk-weighted assets (1) 8.95 % 8.80 % 8.81 % 7.88 % 8.03 % 8.95 % 8.03 % Average shareholders' equity as a percent of average assets 12.87 % 13.09 % 12.52 % 12.70 % 12.60 % 12.98 % 12.45 % Average tangible shareholders' equity as a percent of average tangible assets (1) 7.15 % 7.25 % 6.57 % 6.69 % 6.57 % 7.20 % 6.39 % Book value per share $ 24.36 $ 23.95 $ 23.84 $ 22.39 $ 22.52 $ 24.36 $ 22.52 Tangible book value per share (1) $ 12.94 $ 12.50 $ 12.38 $ 10.91 $ 11.02 $ 12.94 $ 11.02 Common equity tier 1 ratio (3) 11.78 % 11.67 % 11.73 % 11.60 % 11.34 % 11.78 % 11.34 % Tier 1 ratio (3) 12.11 % 12.00 % 12.06 % 11.94 % 11.68 % 12.11 % 11.68 % Total capital ratio (3) 14.47 % 14.31 % 14.26 % 14.19 % 14.16 % 14.47 % 14.16 % Leverage ratio (3) 9.73 % 9.75 % 9.70 % 9.59 % 9.33 % 9.73 % 9.33 % AVERAGE BALANCE SHEET ITEMS Loans (4) $ 11,440,930 $ 11,066,184 $ 10,751,028 $ 10,623,734 $ 10,513,505 $ 11,253,557 $ 10,443,791 Investment securities 3,131,541 3,137,665 3,184,408 3,394,237 3,560,453 3,134,603 3,597,678 Interest-bearing deposits with other banks 599,348 553,654 548,153 386,173 329,584 576,501 323,837 Total earning assets $ 15,171,819 $ 14,757,503 $ 14,483,589 $ 14,404,144 $ 14,403,542 $ 14,964,661 $ 14,365,306 Total assets $ 17,728,251 $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 16,968,055 $ 17,517,236 $ 16,955,596 Noninterest-bearing deposits $ 3,144,198 $ 3,169,750 $ 3,368,024 $ 3,493,305 $ 3,663,419 $ 3,156,974 $ 3,808,362 Interest-bearing deposits 10,486,068 10,109,416 9,834,819 9,293,860 9,050,464 10,297,742 8,954,379 Total deposits $ 13,630,266 $ 13,279,166 $ 13,202,843 $ 12,787,165 $ 12,713,883 $ 13,454,716 $ 12,762,741 Borrowings $ 1,171,246 $ 1,139,014 $ 1,083,954 $ 1,403,071 $ 1,523,699 $ 1,155,130 $ 1,479,265 Shareholders' equity $ 2,281,040 $ 2,265,562 $ 2,144,482 $ 2,153,601 $ 2,137,765 $ 2,273,301 $ 2,110,141 CREDIT QUALITY RATIOS Allowance to ending loans 1.36 % 1.29 % 1.29 % 1.36 % 1.41 % 1.36 % 1.41 % Allowance to nonaccrual loans 249.21 % 243.55 % 215.10 % 193.75 % 276.70 % 249.21 % 276.70 % Nonaccrual loans to total loans 0.54 % 0.53 % 0.60 % 0.70 % 0.51 % 0.54 % 0.51 % Nonperforming assets to ending loans, plus OREO 0.54 % 0.53 % 0.60 % 0.71 % 0.51 % 0.54 % 0.51 % Nonperforming assets to total assets 0.35 % 0.34 % 0.38 % 0.44 % 0.32 % 0.35 % 0.32 % Classified assets to total assets 1.07 % 0.92 % 0.80 % 0.82 % 0.81 % 1.07 % 0.81 % Net charge-offs to average loans (annualized) 0.15 % 0.38 % 0.46 % 0.61 % 0.22 % 0.27 % 0.11 % (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, 2024 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 , 2024 2023 % Change 2024 2023 % Change Interest income Loans and leases, including fees $ 211,760 $ 184,387 14.8 % $ 413,600 $ 354,093 16.8 % Investment securities Taxable 30,295 32,062 (5.5) % 58,591 63,929 (8.3) % Tax-exempt 2,704 3,513 (23.0) % 5,796 6,977 (16.9) % Total investment securities interest 32,999 35,575 (7.2) % 64,387 70,906 (9.2) % Other earning assets 7,960 3,933 102.4 % 15,418 7,477 106.2 % Total interest income 252,719 223,895 12.9 % 493,405 432,476 14.1 % Interest expense Deposits 83,022 44,292 87.4 % 159,097 75,748 110.0 % Short-term borrowings 11,395 15,536 (26.7) % 22,338 28,486 (21.6) % Long-term borrowings 4,991 4,835 3.2 % 9,919 9,692 2.3 % Total interest expense 99,408 64,663 53.7 % 191,354 113,926 68.0 % Net interest income 153,311 159,232 (3.7) % 302,051 318,550 (5.2) % Provision for credit losses-loans and leases 16,157 12,719 27.0 % 29,576 21,363 38.4 % Provision for credit losses-unfunded commitments 286 (1,994) (114.3) % (1,973) (159) 1,140.9 % Net interest income after provision for credit losses 136,868 148,507 (7.8) % 274,448 297,346 (7.7) % Noninterest income Service charges on deposit accounts 7,188 6,972 3.1 % 14,100 13,486 4.6 % Wealth management fees 7,172 6,713 6.8 % 13,848 13,047 6.1 % Bankcard income 3,900 3,692 5.6 % 7,042 7,284 (3.3) % Client derivative fees 763 1,827 (58.2) % 2,013 2,832 (28.9) % Foreign exchange income 16,787 15,039 11.6 % 27,222 31,937 (14.8) % Leasing business income 16,828 10,265 63.9 % 31,417 23,929 31.3 % Net gains from sales of loans 4,479 3,839 16.7 % 8,263 6,174 33.8 % Net gain (loss) on sale of investment securities 0 (384) (100.0) % (5,277) (403) 1,209.4 % Net gain (loss) on equity securities (64) (82) (22.0) % 26 58 (55.2) % Other 4,448 5,377 (17.3) % 9,359 10,457 (10.5) % Total noninterest income 61,501 53,258 15.5 % 108,013 108,801 (0.7) % Noninterest expenses Salaries and employee benefits 75,225 74,199 1.4 % 149,262 146,453 1.9 % Net occupancy 5,793 5,606 3.3 % 11,716 11,291 3.8 % Furniture and equipment 3,646 3,362 8.4 % 7,334 6,679 9.8 % Data processing 8,877 9,871 (10.1) % 17,182 18,891 (9.0) % Marketing 2,605 2,802 (7.0) % 4,567 4,962 (8.0) % Communication 816 644 26.7 % 1,611 1,278 26.1 % Professional services 2,885 2,308 25.0 % 5,153 4,254 21.1 % State intangible tax 875 964 (9.2) % 1,752 1,949 (10.1) % FDIC assessments 2,657 2,806 (5.3) % 5,437 5,632 (3.5) % Intangible amortization 2,396 2,601 (7.9) % 4,697 5,201 (9.7) % Leasing business expense 10,128 6,730 50.5 % 19,882 14,668 35.5 % Other 7,671 8,722 (12.0) % 17,336 16,050 8.0 % Total noninterest expenses 123,574 120,615 2.5 % 245,929 237,308 3.6 % Income before income taxes 74,795 81,150 (7.8) % 136,532 168,839 (19.1) % Income tax expense (benefit) 13,990 15,483 (9.6) % 25,038 32,769 (23.6) % Net income $ 60,805 $ 65,667 (7.4) % $ 111,494 $ 136,070 (18.1) % ADDITIONAL DATA Net earnings per share - basic $ 0.64 $ 0.70 $ 1.18 $ 1.45 Net earnings per share - diluted $ 0.64 $ 0.69 $ 1.17 $ 1.43 Dividends declared per share $ 0.23 $ 0.23 $ 0.46 $ 0.46 Return on average assets 1.38 % 1.55 % 1.28 % 1.62 % Return on average shareholders' equity 10.72 % 12.32 % 9.86 % 13.00 % Interest income $ 252,719 $ 223,895 12.9 % $ 493,405 $ 432,476 14.1 % Tax equivalent adjustment 1,418 1,601 (11.4) % 2,953 3,025 (2.4) % Interest income - tax equivalent 254,137 225,496 12.7 % 496,358 435,501 14.0 % Interest expense 99,408 64,663 53.7 % 191,354 113,926 68.0 % Net interest income - tax equivalent $ 154,729 $ 160,833 (3.8) % $ 305,004 $ 321,575 (5.2) % Net interest margin 4.06 % 4.43 % 4.06 % 4.47 % Net interest margin (fully tax equivalent) (1) 4.10 % 4.48 % 4.10 % 4.51 % Full-time equivalent employees 2,144 2,193 (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) 2024 Second First Year to % Change Quarter Quarter Date Linked Qtr. Interest income Loans and leases, including fees $ 211,760 $ 201,840 $ 413,600 4.9 % Investment securities Taxable 30,295 28,296 58,591 7.1 % Tax-exempt 2,704 3,092 5,796 (12.5) % Total investment securities interest 32,999 31,388 64,387 5.1 % Other earning assets 7,960 7,458 15,418 6.7 % Total interest income 252,719 240,686 493,405 5.0 % Interest expense Deposits 83,022 76,075 159,097 9.1 % Short-term borrowings 11,395 10,943 22,338 4.1 % Long-term borrowings 4,991 4,928 9,919 1.3 % Total interest expense 99,408 91,946 191,354 8.1 % Net interest income 153,311 148,740 302,051 3.1 % Provision for credit losses-loans and leases 16,157 13,419 29,576 20.4 % Provision for credit losses-unfunded commitments 286 (2,259) (1,973) (112.7) % Net interest income after provision for credit losses 136,868 137,580 274,448 (0.5) % Noninterest income Service charges on deposit accounts 7,188 6,912 14,100 4.0 % Wealth management fees 7,172 6,676 13,848 7.4 % Bankcard income 3,900 3,142 7,042 24.1 % Client derivative fees 763 1,250 2,013 (39.0) % Foreign exchange income 16,787 10,435 27,222 60.9 % Leasing business income 16,828 14,589 31,417 15.3 % Net gains from sales of loans 4,479 3,784 8,263 18.4 % Net gain (loss) on sale of investment securities 0 (5,277) (5,277) (100.0) % Net gain (loss) on equity securities (64) 90 26 171.1 % Other 4,448 4,911 9,359 (9.4) % Total noninterest income 61,501 46,512 108,013 32.2 % Noninterest expenses Salaries and employee benefits 75,225 74,037 149,262 1.6 % Net occupancy 5,793 5,923 11,716 (2.2) % Furniture and equipment 3,646 3,688 7,334 (1.1) % Data processing 8,877 8,305 17,182 6.9 % Marketing 2,605 1,962 4,567 32.8 % Communication 816 795 1,611 2.6 % Professional services 2,885 2,268 5,153 27.2 % State intangible tax 875 877 1,752 (0.2) % FDIC assessments 2,657 2,780 5,437 (4.4) % Intangible amortization 2,396 2,301 4,697 4.1 % Leasing business expense 10,128 9,754 19,882 3.8 % Other 7,671 9,665 17,336 (20.6) % Total noninterest expenses 123,574 122,355 245,929 1.0 % Income before income taxes 74,795 61,737 136,532 21.2 % Income tax expense (benefit) 13,990 11,048 25,038 26.6 % Net income $ 60,805 $ 50,689 $ 111,494 20.0 % ADDITIONAL DATA Net earnings per share - basic $ 0.64 $ 0.54 $ 1.18 Net earnings per share - diluted $ 0.64 $ 0.53 $ 1.17 Dividends declared per share $ 0.23 $ 0.23 $ 0.46 Return on average assets 1.38 % 1.18 % 1.28 % Return on average shareholders' equity 10.72 % 9.00 % 9.86 % Interest income $ 252,719 $ 240,686 $ 493,405 5.0 % Tax equivalent adjustment 1,418 1,535 2,953 (7.6) % Interest income - tax equivalent 254,137 242,221 496,358 4.9 % Interest expense 99,408 91,946 191,354 8.1 % Net interest income - tax equivalent $ 154,729 $ 150,275 $ 305,004 3.0 % Net interest margin 4.06 % 4.05 % 4.06 % Net interest margin (fully tax equivalent) (1) 4.10 % 4.10 % 4.10 % Full-time equivalent employees 2,144 2,116 (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) 2023 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income Loans and leases, including fees $ 197,416 $ 192,261 $ 184,387 $ 169,706 $ 743,770 Investment securities Taxable 30,294 31,297 32,062 31,867 125,520 Tax-exempt 3,402 3,522 3,513 3,464 13,901 Total investment securities interest 33,696 34,819 35,575 35,331 139,421 Other earning assets 7,325 5,011 3,933 3,544 19,813 Total interest income 238,437 232,091 223,895 208,581 903,004 Interest expense Deposits 69,193 57,069 44,292 31,456 202,010 Short-term borrowings 10,277 14,615 15,536 12,950 53,378 Long-term borrowings 5,202 4,952 4,835 4,857 19,846 Total interest expense 84,672 76,636 64,663 49,263 275,234 Net interest income 153,765 155,455 159,232 159,318 627,770 Provision for credit losses-loans and leases 8,804 12,907 12,719 8,644 43,074 Provision for credit losses-unfunded commitments 1,426 (1,234) (1,994) 1,835 33 Net interest income after provision for credit losses 143,535 143,782 148,507 148,839 584,663 Noninterest income Service charges on deposit accounts 6,846 6,957 6,972 6,514 27,289 Wealth management fees 6,091 6,943 6,713 6,334 26,081 Bankcard income 3,349 3,406 3,692 3,592 14,039 Client derivative fees 711 1,612 1,827 1,005 5,155 Foreign exchange income 8,730 13,384 15,039 16,898 54,051 Leasing business income 12,856 14,537 10,265 13,664 51,322 Net gains from sales of loans 2,957 4,086 3,839 2,335 13,217 Net gain (loss) on sale of investment securities (851) (4) (384) (19) (1,258) Net gain (loss) on equity securities 202 (54) (82) 140 206 Other 6,102 5,761 5,377 5,080 22,320 Total noninterest income 46,993 56,628 53,258 55,543 212,422 Noninterest expenses Salaries and employee benefits 70,637 75,641 74,199 72,254 292,731 Net occupancy 5,890 5,809 5,606 5,685 22,990 Furniture and equipment 3,523 3,341 3,362 3,317 13,543 Data processing 8,488 8,473 9,871 9,020 35,852 Marketing 2,087 2,598 2,802 2,160 9,647 Communication 707 744 644 634 2,729 Professional services 3,148 2,524 2,308 1,946 9,926 State intangible tax 984 981 964 985 3,914 FDIC assessments 3,651 2,665 2,806 2,826 11,948 Intangible amortization 2,601 2,600 2,601 2,600 10,402 Leasing business expense 8,955 8,877 6,730 7,938 32,500 Other 8,466 7,791 8,722 7,328 32,307 Total noninterest expenses 119,137 122,044 120,615 116,693 478,489 Income before income taxes 71,391 78,366 81,150 87,689 318,596 Income tax expense (benefit) 14,659 15,305 15,483 17,286 62,733 Net income $ 56,732 $ 63,061 $ 65,667 $ 70,403 $ 255,863 ADDITIONAL DATA Net earnings per share - basic $ 0.60 $ 0.67 $ 0.70 $ 0.75 $ 2.72 Net earnings per share - diluted $ 0.60 $ 0.66 $ 0.69 $ 0.74 $ 2.69 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 Return on average assets 1.31 % 1.48 % 1.55 % 1.69 % 1.51 % Return on average shareholders' equity 10.50 % 11.62 % 12.32 % 13.71 % 12.01 % Interest income $ 238,437 $ 232,091 $ 223,895 $ 208,581 $ 903,004 Tax equivalent adjustment 1,672 1,659 1,601 1,424 6,356 Interest income - tax equivalent 240,109 233,750 225,496 210,005 909,360 Interest expense 84,672 76,636 64,663 49,263 275,234 Net interest income - tax equivalent $ 155,437 $ 157,114 $ 160,833 $ 160,742 $ 634,126 Net interest margin 4.21 % 4.28 % 4.43 % 4.51 % 4.36 % Net interest margin (fully tax equivalent) (1) 4.26 % 4.33 % 4.48 % 4.55 % 4.40 % Full-time equivalent employees 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) June 30 , Mar. 31 , Dec. 31 , Sep. 30 , June 30 , % Change % Change 2024 2024 2023 2023 2023 Linked Qtr. Comp Qtr. ASSETS Cash and due from banks $ 193,794 $ 199,407 $ 213,059 $ 220,335 $ 217,385 (2.8) % (10.9) % Interest-bearing deposits with other banks 738,555 751,290 792,960 452,867 485,241 (1.7) % 52.2 % Investment securities available-for-sale 3,036,758 2,850,667 3,021,126 3,044,361 3,249,404 6.5 % (6.5) % Investment securities held-to-maturity 78,921 79,542 80,321 81,236 82,372 (0.8) % (4.2) % Other investments 132,412 125,548 129,945 133,725 141,892 5.5 % (6.7) % Loans held for sale 16,911 11,534 9,213 12,391 15,267 46.6 % 10.8 % Loans and leases Commercial and industrial 3,782,487 3,591,428 3,501,221 3,420,873 3,433,162 5.3 % 10.2 % Lease financing 534,557 492,862 474,817 399,973 360,801 8.5 % 48.2 % Construction real estate 741,406 641,596 564,832 578,824 536,464 15.6 % 38.2 % Commercial real estate 4,076,596 4,145,969 4,080,939 3,992,654 4,048,460 (1.7) % 0.7 % Residential real estate 1,377,290 1,344,677 1,333,674 1,293,470 1,221,484 2.4 % 12.8 % Home equity 800,860 773,811 758,676 743,991 728,711 3.5 % 9.9 % Installment 148,530 153,838 159,078 160,648 165,216 (3.5) % (10.1) % Credit card 59,477 60,939 59,939 56,386 55,911 (2.4) % 6.4 % Total loans 11,521,203 11,205,120 10,933,176 10,646,819 10,550,209 2.8 % 9.2 % Less: Allowance for credit losses (156,185) (144,274) (141,433) (145,201) (148,646) 8.3 % 5.1 % Net loans 11,365,018 11,060,846 10,791,743 10,501,618 10,401,563 2.7 % 9.3 % Premises and equipment 197,873 198,428 194,740 192,572 192,077 (0.3) % 3.0 % Operating leases 167,472 161,473 153,214 136,883 132,272 3.7 % 26.6 % Goodwill 1,007,656 1,007,656 1,005,868 1,005,868 1,005,828 0.0 % 0.2 % Other intangibles 83,528 85,603 83,949 86,378 88,662 (2.4) % (5.8) % Accrued interest and other assets 1,147,282 1,067,244 1,056,762 1,186,618 1,078,186 7.5 % 6.4 % Total Assets $ 18,166,180 $ 17,599,238 $ 17,532,900 $ 17,054,852 $ 17,090,149 3.2 % 6.3 % LIABILITIES Deposits Interest-bearing demand $ 2,922,540 $ 2,916,518 $ 2,993,219 $ 2,880,617 $ 2,919,472 0.2 % 0.1 % Savings 4,628,320 4,467,894 4,331,228 4,023,455 3,785,445 3.6 % 22.3 % Time 3,049,635 2,896,860 2,718,390 2,572,909 2,484,780 5.3 % 22.7 % Total interest-bearing deposits 10,600,495 10,281,272 10,042,837 9,476,981 9,189,697 3.1 % 15.4 % Noninterest-bearing 3,061,427 3,175,876 3,317,960 3,438,572 3,605,181 (3.6) % (15.1) % Total deposits 13,661,922 13,457,148 13,360,797 12,915,553 12,794,878 1.5 % 6.8 % FHLB short-term borrowings 1,040,000 700,000 800,000 755,000 1,050,300 48.6 % (1.0) % Other 139,172 162,145 137,814 219,188 165,983 (14.2) % (16.2) % Total short-term borrowings 1,179,172 862,145 937,814 974,188 1,216,283 36.8 % (3.1) % Long-term debt 338,556 343,236 344,115 340,902 339,963 (1.4) % (0.4) % Total borrowed funds 1,517,728 1,205,381 1,281,929 1,315,090 1,556,246 25.9 % (2.5) % Accrued interest and other liabilities 660,091 649,706 622,200 694,700 595,606 1.6 % 10.8 % Total Liabilities 15,839,741 15,312,235 15,264,926 14,925,343 14,946,730 3.4 % 6.0 % SHAREHOLDERS' EQUITY Common stock 1,635,705 1,632,971 1,638,972 1,636,054 1,632,659 0.2 % 0.2 % Retained earnings 1,204,844 1,166,065 1,136,718 1,101,905 1,060,715 3.3 % 13.6 % Accumulated other comprehensive income (loss) (323,409) (321,109) (309,819) (410,005) (353,010) 0.7 % (8.4) % Treasury stock, at cost (190,701) (190,924) (197,897) (198,445) (196,945) (0.1) % (3.2) % Total Shareholders' Equity 2,326,439 2,287,003 2,267,974 2,129,509 2,143,419 1.7 % 8.5 % Total Liabilities and Shareholders' Equity $ 18,166,180 $ 17,599,238 $ 17,532,900 $ 17,054,852 $ 17,090,149 3.2 % 6.3 % 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 , 2024 2024 2023 2023 2023 2024 2023 ASSETS Cash and due from banks $ 174,435 $ 204,119 $ 214,678 $ 211,670 $ 221,527 $ 189,277 $ 220,133 Interest-bearing deposits with other banks 599,348 553,654 548,153 386,173 329,584 576,501 323,837 Investment securities 3,131,541 3,137,665 3,184,408 3,394,237 3,560,453 3,134,603 3,597,678 Loans held for sale 14,075 12,069 12,547 15,420 11,856 13,072 8,711 Loans and leases Commercial and industrial 3,716,083 3,543,475 3,422,381 3,443,615 3,469,683 3,629,779 3,463,218 Lease financing 509,758 480,540 419,179 371,598 323,819 495,149 288,217 Construction real estate 683,780 603,974 540,314 547,884 518,190 643,877 527,192 Commercial real estate 4,146,764 4,101,238 4,060,733 4,024,798 4,050,946 4,124,001 4,034,077 Residential real estate 1,361,133 1,336,749 1,320,670 1,260,249 1,181,053 1,348,941 1,148,651 Home equity 790,384 765,410 750,925 735,251 726,333 777,897 727,254 Installment 151,753 157,663 160,242 164,092 172,147 154,708 188,947 Credit card 67,200 65,066 64,037 60,827 59,478 66,133 57,524 Total loans 11,426,855 11,054,115 10,738,481 10,608,314 10,501,649 11,240,485 10,435,080 Less: Allowance for credit losses (147,666) (143,950) (149,398) (150,297) (145,578) (145,808) (141,024) Net loans 11,279,189 10,910,165 10,589,083 10,458,017 10,356,071 11,094,677 10,294,056 Premises and equipment 199,096 198,482 194,435 194,228 190,583 198,789 190,465 Operating leases 156,457 154,655 139,331 132,984 138,725 155,556 122,996 Goodwill 1,007,657 1,006,477 1,005,870 1,005,844 1,005,791 1,007,067 1,005,752 Other intangibles 84,577 84,109 85,101 87,427 89,878 84,343 91,225 Accrued interest and other assets 1,081,876 1,044,826 1,151,349 1,065,389 1,063,587 1,063,351 1,100,743 Total Assets $ 17,728,251 $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 16,968,055 $ 17,517,236 $ 16,955,596 LIABILITIES Deposits Interest-bearing demand $ 2,888,252 $ 2,895,768 $ 2,988,086 $ 2,927,416 $ 2,906,855 $ 2,892,010 $ 2,906,784 Savings 4,617,658 4,399,768 4,235,658 3,919,590 3,749,902 4,508,713 3,784,164 Time 2,980,158 2,813,880 2,611,075 2,446,854 2,393,707 2,897,019 2,263,431 Total interest-bearing deposits 10,486,068 10,109,416 9,834,819 9,293,860 9,050,464 10,297,742 8,954,379 Noninterest-bearing 3,144,198 3,169,750 3,368,024 3,493,305 3,663,419 3,156,974 3,808,362 Total deposits 13,630,266 13,279,166 13,202,843 12,787,165 12,713,883 13,454,716 12,762,741 Federal funds purchased and securities sold under agreements to repurchase 750 4,204 3,586 10,788 21,881 2,477 24,118 FHLB short-term borrowings 669,111 646,187 554,826 878,199 1,028,207 657,649 976,960 Other 161,913 146,127 185,221 175,682 132,088 154,020 135,622 Total short-term borrowings 831,774 796,518 743,633 1,064,669 1,182,176 814,146 1,136,700 Long-term debt 339,472 342,496 340,321 338,402 341,523 340,984 342,565 Total borrowed funds 1,171,246 1,139,014 1,083,954 1,403,071 1,523,699 1,155,130 1,479,265 Accrued interest and other liabilities 645,699 622,479 693,676 607,552 592,708 634,089 603,449 Total Liabilities 15,447,211 15,040,659 14,980,473 14,797,788 14,830,290 15,243,935 14,845,455 SHAREHOLDERS' EQUITY Common stock 1,634,183 1,637,835 1,637,197 1,634,102 1,631,230 1,636,009 1,632,307 Retained earnings 1,179,827 1,144,447 1,111,786 1,076,515 1,034,092 1,162,137 1,012,057 Accumulated other comprehensive loss (341,941) (319,601) (406,265) (358,769) (330,263) (330,771) (334,831) Treasury stock, at cost (191,029) (197,119) (198,236) (198,247) (197,294) (194,074) (199,392) Total Shareholders' Equity 2,281,040 2,265,562 2,144,482 2,153,601 2,137,765 2,273,301 2,110,141 Total Liabilities and Shareholders' Equity $ 17,728,251 $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 16,968,055 $ 17,517,236 $ 16,955,596 FIRST FINANCIAL BANCORP . NET INTEREST MARGIN RATE/VOLUME ANALYSIS (Dollars in thousands) (Unaudited) Quarterly Averages Year-to-Date Averages June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Balance Interest Yield Balance Interest Yield Balance Interest Yield Balance Yield Balance Yield Earning assets Investments: Investment securities $ 3,131,541 $ 32,999 4.23 % $ 3,137,665 $ 31,388 4.01 % $ 3,560,453 $ 35,575 4.01 % $ 3,134,603 4.14 % $ 3,597,678 3.97 % Interest-bearing deposits with other banks 599,348 7,960 5.33 % 553,654 7,458 5.40 % 329,584 3,933 4.79 % 576,501 5.39 % 323,837 4.66 % Gross loans (1) 11,440,930 211,760 7.42 % 11,066,184 201,840 7.32 % 10,513,505 184,387 7.03 % 11,253,557 7.41 % 10,443,791 6.84 % Total earning assets 15,171,819 252,719 6.68 % 14,757,503 240,686 6.54 % 14,403,542 223,895 6.23 % 14,964,661 6.65 % 14,365,306 6.07 % Nonearning assets Allowance for credit losses (147,666) (143,950) (145,578) (145,808) (141,024) Cash and due from banks 174,435 204,119 221,527 189,277 220,133 Accrued interest and other assets 2,529,663 2,488,549 2,488,564 2,509,106 2,511,181 Total assets $ 17,728,251 $ 17,306,221 $ 16,968,055 $ 17,517,236 $ 16,955,596 Interest-bearing liabilities Deposits: Interest-bearing demand $ 2,888,252 $ 14,923 2.07 % $ 2,895,768 $ 14,892 2.06 % $ 2,906,855 $ 8,351 1.15 % $ 2,892,010 2.08 % $ 2,906,784 1.04 % Savings 4,617,658 33,142 2.88 % 4,399,768 29,486 2.69 % 3,749,902 14,055 1.50 % 4,508,713 2.80 % 3,784,164 1.16 % Time 2,980,158 34,957 4.70 % 2,813,880 31,697 4.52 % 2,393,707 21,886 3.67 % 2,897,019 4.64 % 2,263,431 3.48 % Total interest-bearing deposits 10,486,068 83,022 3.18 % 10,109,416 76,075 3.02 % 9,050,464 44,292 1.96 % 10,297,742 3.12 % 8,954,379 1.71 % Borrowed funds Short-term borrowings 831,774 11,395 5.49 % 796,518 10,943 5.51 % 1,182,176 15,536 5.27 % 814,146 5.53 % 1,136,700 5.05 % Long-term debt 339,472 4,991 5.90 % 342,496 4,928 5.77 % 341,523 4,835 5.68 % 340,984 5.87 % 342,565 5.71 % Total borrowed funds 1,171,246 16,386 5.61 % 1,139,014 15,871 5.59 % 1,523,699 20,371 5.36 % 1,155,130 5.63 % 1,479,265 5.20 % Total interest-bearing liabilities 11,657,314 99,408 3.42 % 11,248,430 91,946 3.28 % 10,574,163 64,663 2.45 % 11,452,872 3.37 % 10,433,644 2.20 % Noninterest-bearing liabilities Noninterest-bearing demand deposits 3,144,198 3,169,750 3,663,419 3,156,974 3,808,362 Other liabilities 645,699 622,479 592,708 634,089 603,449 Shareholders' equity 2,281,040 2,265,562 2,137,765 2,273,301 2,110,141 Total liabilities & shareholders' equity $ 17,728,251 $ 17,306,221 $ 16,968,055 $ 17,517,236 $ 16,955,596 Net interest income $ 153,311 $ 148,740 $ 159,232 $ 302,051 $ 318,550 Net interest spread 3.26 % 3.26 % 3.78 % 3.28 % 3.87 % Net interest margin 4.06 % 4.05 % 4.43 % 4.06 % 4.47 % Tax equivalent adjustment 0.04 % 0.05 % 0.05 % 0.04 % 0.04 % Net interest margin (fully tax equivalent) 4.10 % 4.10 % 4.48 % 4.10 % 4.51 % (1) Loans held for sale and nonaccrual loans are included in gross loans. FIRST FINANCIAL BANCORP . NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) (Dollars in thousands) (Unaudited) Linked Qtr. Income Variance Comparable Qtr. Income Variance Year-to-Date Income Variance Rate Volume Total Rate Volume Total Rate Volume Total Earning assets Investment securities $ 1,676 $ (65) $ 1,611 $ 1,944 $ (4,520) $ (2,576) $ 2,993 $ (9,512) $ (6,519) Interest-bearing deposits with other banks (105) 607 502 444 3,583 4,027 1,184 6,757 7,941 Gross loans (2) 2,984 6,936 9,920 10,207 17,166 27,373 29,746 29,761 59,507 Total earning assets 4,555 7,478 12,033 12,595 16,229 28,824 33,923 27,006 60,929 Interest-bearing liabilities Total interest-bearing deposits $ 3,965 $ 2,982 $ 6,947 $ 27,364 $ 11,366 $ 38,730 $ 62,594 $ 20,755 $ 83,349 Borrowed funds Short-term borrowings (31) 483 452 659 (4,800) (4,141) 2,702 (8,850) (6,148) Long-term debt 107 (44) 63 186 (30) 156 273 (46) 227 Total borrowed funds 76 439 515 845 (4,830) (3,985) 2,975 (8,896) (5,921) Total interest-bearing liabilities 4,041 3,421 7,462 28,209 6,536 34,745 65,569 11,859 77,428 Net interest income (1) $ 514 $ 4,057 $ 4,571 $ (15,614) $ 9,693 $ (5,921) $ (31,646) $ 15,147 $ (16,499) (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 , 2024 2024 2023 2023 2023 2024 2023 ALLOWANCE FOR CREDIT LOSS ACTIVITY Balance at beginning of period $ 144,274 $ 141,433 $ 145,201 $ 148,646 $ 141,591 $ 141,433 $ 132,977 Provision for credit losses 16,157 13,419 8,804 12,907 12,719 29,576 21,363 Gross charge-offs Commercial and industrial 2,149 2,695 6,866 9,207 2,372 4,844 3,102 Lease financing 190 3 4,244 76 90 193 103 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 2 5,319 1 6,008 2,648 5,321 2,714 Residential real estate 6 65 9 10 20 71 20 Home equity 122 25 174 54 21 147 112 Installment 2,034 2,236 2,054 1,349 1,515 4,270 3,039 Credit card 532 794 363 319 274 1,326 491 Total gross charge-offs 5,035 11,137 13,711 17,023 6,940 16,172 9,581 Recoveries Commercial and industrial 236 162 459 335 631 398 740 Lease financing 1 59 52 1 1 60 2 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 137 38 93 39 153 175 2,391 Residential real estate 37 24 24 44 113 61 179 Home equity 118 80 178 125 232 198 312 Installment 219 145 210 87 90 364 144 Credit card 41 51 123 40 56 92 119 Total recoveries 789 559 1,139 671 1,276 1,348 3,887 Total net charge-offs 4,246 10,578 12,572 16,352 5,664 14,824 5,694 Ending allowance for credit losses $ 156,185 $ 144,274 $ 141,433 $ 145,201 $ 148,646 $ 156,185 $ 148,646 NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) Commercial and industrial 0.21 % 0.29 % 0.74 % 1.02 % 0.20 % 0.25 % 0.14 % Lease financing 0.15 % (0.05) % 3.97 % 0.08 % 0.11 % 0.05 % 0.07 % Construction real estate 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Commercial real estate (0.01) % 0.52 % (0.01) % 0.59 % 0.25 % 0.25 % 0.02 % Residential real estate (0.01) % 0.01 % 0.00 % (0.01) % (0.03) % 0.00 % (0.03) % Home equity 0.00 % (0.03) % 0.00 % (0.04) % (0.12) % (0.01) % (0.06) % Installment 4.81 % 5.33 % 4.57 % 3.05 % 3.32 % 5.08 % 3.09 % Credit card 2.94 % 4.59 % 1.49 % 1.82 % 1.47 % 3.75 % 1.30 % Total net charge-offs 0.15 % 0.38 % 0.46 % 0.61 % 0.22 % 0.27 % 0.11 % COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS Nonaccrual loans Commercial and industrial $ 17,665 $ 14,532 $ 15,746 $ 17,152 $ 21,508 $ 17,665 $ 21,508 Lease financing 5,374 3,794 3,610 7,731 4,833 5,374 4,833 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 22,942 23,055 27,984 33,019 11,876 22,942 11,876 Residential real estate 12,715 12,836 14,067 12,328 11,697 12,715 11,697 Home equity 3,295 4,036 3,476 3,937 3,239 3,295 3,239 Installment 682 984 870 774 568 682 568 Total nonaccrual loans 62,673 59,237 65,753 74,941 53,721 62,673 53,721 Other real estate owned (OREO) 30 161 106 142 281 30 281 Total nonperforming assets 62,703 59,398 65,859 75,083 54,002 62,703 54,002 Accruing loans past due 90 days or more 1,573 820 2,028 698 873 1,573 873 Total underperforming assets $ 64,276 $ 60,218 $ 67,887 $ 75,781 $ 54,875 $ 64,276 $ 54,875 Total classified assets $ 195,277 $ 162,348 $ 140,995 $ 140,552 $ 138,909 $ 195,277 $ 138,909 CREDIT QUALITY RATIOS Allowance for credit losses to Nonaccrual loans 249.21 % 243.55 % 215.10 % 193.75 % 276.70 % 249.21 % 276.70 % Total ending loans 1.36 % 1.29 % 1.29 % 1.36 % 1.41 % 1.36 % 1.41 % Nonaccrual loans to total loans 0.54 % 0.53 % 0.60 % 0.70 % 0.51 % 0.54 % 0.51 % Nonperforming assets to Ending loans, plus OREO 0.54 % 0.53 % 0.60 % 0.71 % 0.51 % 0.54 % 0.51 % Total assets 0.35 % 0.34 % 0.38 % 0.44 % 0.32 % 0.35 % 0.32 % Classified assets to total assets 1.07 % 0.92 % 0.80 % 0.82 % 0.81 % 1.07 % 0.81 % FIRST FINANCIAL BANCORP . CAPITAL ADEQUACY (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 , June 30 , 2024 2024 2023 2023 2023 2024 2023 PER COMMON SHARE Market Price High $ 23.78 $ 23.68 $ 24.28 $ 24.02 $ 22.27 $ 23.78 $ 26.24 Low $ 20.79 $ 21.04 $ 17.37 $ 19.19 $ 18.20 $ 20.79 $ 18.20 Close $ 22.22 $ 22.42 $ 23.75 $ 19.60 $ 20.44 $ 22.22 $ 20.44 Average shares outstanding - basic 94,438,235 94,218,067 94,063,570 94,030,275 93,924,068 94,328,151 93,828,829 Average shares outstanding - diluted 95,470,093 95,183,998 95,126,316 95,126,269 95,169,348 95,327,045 95,065,334 Ending shares outstanding 95,486,010 95,473,595 95,141,244 95,117,180 95,185,483 95,486,010 95,185,483 Total shareholders' equity $ 2,326,439 $ 2,287,003 $ 2,267,974 $ 2,129,509 $ 2,143,419 $ 2,326,439 $ 2,143,419 REGULATORY CAPITAL Preliminary Preliminary Common equity tier 1 capital $ 1,626,345 $ 1,582,113 $ 1,568,815 $ 1,527,793 $ 1,481,913 $ 1,626,345 $ 1,481,913 Common equity tier 1 capital ratio 11.78 % 11.67 % 11.73 % 11.60 % 11.34 % 11.78 % 11.34 % Tier 1 capital $ 1,671,258 $ 1,626,899 $ 1,613,480 $ 1,572,248 $ 1,526,362 $ 1,671,258 $ 1,526,362 Tier 1 ratio 12.11 % 12.00 % 12.06 % 11.94 % 11.68 % 12.11 % 11.68 % Total capital $ 1,997,378 $ 1,940,762 $ 1,907,441 $ 1,868,490 $ 1,851,144 $ 1,997,378 $ 1,851,144 Total capital ratio 14.47 % 14.31 % 14.26 % 14.19 % 14.16 % 14.47 % 14.16 % Total capital in excess of minimum requirement $ 548,037 $ 516,704 $ 503,152 $ 485,580 $ 478,911 $ 548,037 $ 478,911 Total risk-weighted assets $ 13,803,249 $ 13,562,455 $ 13,374,177 $ 13,170,574 $ 13,068,888 $ 13,803,249 $ 13,068,888 Leverage ratio 9.73 % 9.75 % 9.70 % 9.59 % 9.33 % 9.73 % 9.33 % OTHER CAPITAL RATIOS Ending shareholders' equity to ending assets 12.81 % 12.99 % 12.94 % 12.49 % 12.54 % 12.81 % 12.54 % Ending tangible shareholders' equity to ending tangible assets (1) 7.23 % 7.23 % 7.17 % 6.50 % 6.56 % 7.23 % 6.56 % Average shareholders' equity to average assets 12.87 % 13.09 % 12.52 % 12.70 % 12.60 % 12.98 % 12.45 % Average tangible shareholders' equity to average tangible assets (1) 7.15 % 7.25 % 6.57 % 6.69 % 6.57 % 7.20 % 6.39 % REPURCHASE PROGRAM (2) Shares repurchased 0 0 0 0 0 0 0 Average share repurchase price N/A N/A 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 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-second-quarter-2024-financial-results-and-quarterly-dividend-increase-302207028.html SOURCE First Financial Bancorp .

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