First Financial Bancorp Announces Third Quarter 2022 Financial Results

About this update from First Financial Bancorp.

Earnings per diluted share of $0.59 ; $0.61 on an adjusted(1) basis Return on average assets of 1.35%; 1.40% on an adjusted(1) basis Net interest margin on FTE basis(1) of 3.98%; 53 bp increase from linked quarter Loan growth of $377.0 million ; 15.9% on an annualized basis Strong credit quality with declines in net charge-offs, classified and nonperforming assets from the linked quarter CINCINNATI, Ohio , Oct. 20, 2022 /PRNewswire/ -- First Financial Bancorp . (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2022 . For the three months ended September 30, 2022 , the Company reported net income of $55.7 million , or $0.59 per diluted common share. These results compare to net income of $51.5 million , or $0.55 per diluted common share, for the second quarter of 2022. For the nine months ended September 30, 2022 , First Financial had earnings per diluted share of $1.57 compared to $1.64 for the same period in 2021. Return on average assets for the third quarter of 2022 was 1.35% while return on average tangible common equity was 22.29%(1). These compare to return on average assets of 1.28% and return on average tangible common equity of 20.68%(1) in the second quarter of 2022. Third quarter 2022 highlights include: Strong loan growth when compared to linked quarter(2) Loan balances increased $377.0 million compared to the second quarter Growth of 15.9% on an annualized basis Broad based portfolio growth Net interest margin of 3.93%, or 3.98% on a fully tax-equivalent basis(1), exceeded expectations 53 bp increase to 3.98% from 3.45% in the second quarter due to higher asset yields resulting from higher interest rates 89 bp increase in loan yields offset 11 basis point increase in cost of deposits Noninterest income of $42.5 million , or $43.4 million as adjusted(1) Foreign exchange income of $11.8 million exceeded expectations; 12.8% decline from record second quarter Leasing business income of $7.1 million ; consistent with second quarter Wealth management fees remained strong at $5.5 million Mortgage banking revenue decreased $1.5 million ; 28.8% decrease from the linked quarter Other noninterest income decreased $1.4 million in current quarter due to elevated income from investments in limited partnerships in second quarter Adjusted(1) for $0.9 million loss on investment securities (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 consolidated balance sheets at September 30, 2022 , 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 $125.1 million , or $106.1 million as adjusted(1) Adjustments(1) include $17.2 million tax credit investment writedown and $1.4 million of severance costs Increase driven by elevated incentive costs tied to Company performance and higher leasing business expenses during the period Efficiency ratio of 69.3%; 58.5% as adjusted(1) Total Allowance for Credit Losses of $141.1 million ; Total quarterly provision expense of $8.3 million Loans and leases - ACL of $124.1 million , 1.27% of total loans Unfunded Commitments - ACL of $17.0 million Provision expense driven by loan growth and slower prepayment speeds Net charge-offs declined slightly to 7 bps of average loans and leases Regulatory capital ratios remain in excess of internal targets Total capital ratio of 13.73% Tier 1 common equity decreased 9 bps to 10.82% Tangible common equity of 5.79%(1); 8.07%(1) excluding impact from AOCI Tangible book value per share of $9.48 (1) Archie Brown , President and CEO, commented on the quarter, "We are very excited about our third quarter performance. Adjusted earnings per share increased approximately 9% from the second quarter due to record revenue, which was driven by an 18% increase in net interest income. Recent rate increases continued to positively impact our asset sensitive balance sheet as our net interest margin accelerated by 53 basis points." Mr. Brown continued, "Credit trends remained stable across the portfolio with slight reductions in non-performing loan and net charge off ratios. Even with these improvements, our loan loss reserve grew modestly to account for loan growth and the intermediate economic outlook." Mr. Brown commented on loan growth, "We were very pleased with loan growth in the third quarter. Loan balances increased by $377 million or 15.9% on an annualized basis, which was driven by increases in C&I, Consumer and Residential Mortgage. Given our expectations for the economy in the near-term and moderating loan pipelines, we expect loan growth to ease in the coming months." Mr. Brown continued, "Non-interest income was once again negatively impacted by rising rates and changes made to our overdraft program. We also experienced an expected decline in foreign exchange income from a record second quarter and mortgage activity suffered from softening demand. While we expect headwinds in the fourth quarter, we anticipate that fee income will increase modestly to close the year." Mr. Brown concluded, "Our third quarter performance was strong and we are optimistic we can sustain this momentum over the remainder of 2022 and into the new year. Our balance sheet is well positioned for rising rates. In addition, with a loan to deposit ratio under 80%, strong liquidity and positive credit trends, we believe we are well situated to manage a potential economic downturn." Full detail of the Company's third 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, October 21, 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 202818. 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 986167. The recording will be available until November 4, 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 September 30, 2022 , the Company had $16.6 billion in assets, $9.8 billion in loans, $12.3 billion in deposits and $2.0 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 September 30, 2022 . The Company operated 134 full service banking centers as of September 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, Nine months ended, Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , Sep. 30 , 2022 2022 2022 2021 2021 2022 2021 RESULTS OF OPERATIONS Net income $ 55,705 $ 51,520 $ 41,301 $ 46,945 $ 60,012 $ 148,526 $ 158,215 Net earnings per share - basic $ 0.60 $ 0.55 $ 0.44 $ 0.51 $ 0.64 $ 1.59 $ 1.65 Net earnings per share - diluted $ 0.59 $ 0.55 $ 0.44 $ 0.50 $ 0.63 $ 1.57 $ 1.64 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.69 $ 0.69 KEY FINANCIAL RATIOS Return on average assets 1.35 % 1.28 % 1.03 % 1.16 % 1.49 % 1.22 % 1.32 % Return on average shareholders' equity 10.58 % 9.84 % 7.53 % 8.31 % 10.53 % 9.29 % 9.34 % Return on average tangible shareholders' equity (1) 22.29 % 20.68 % 14.93 % 15.11 % 19.03 % 19.14 % 16.87 % Net interest margin 3.93 % 3.41 % 3.11 % 3.19 % 3.28 % 3.49 % 3.30 % Net interest margin (fully tax equivalent) (1)(2) 3.98 % 3.45 % 3.16 % 3.23 % 3.32 % 3.53 % 3.34 % Ending shareholders' equity as a percent of ending assets 12.00 % 12.74 % 13.35 % 13.83 % 14.01 % 12.00 % 14.01 % Ending tangible shareholders' equity as a percent of: Ending tangible assets (1) 5.79 % 6.40 % 6.95 % 7.58 % 8.21 % 5.79 % 8.21 % Risk-weighted assets (1) 7.21 % 8.09 % 8.85 % 9.91 % 10.76 % 7.21 % 10.76 % Average shareholders' equity as a percent of average assets 12.75 % 12.97 % 13.75 % 13.98 % 14.14 % 13.15 % 14.09 % Average tangible shareholders' equity as a percent of average tangible assets (1) 6.49 % 6.62 % 7.44 % 8.20 % 8.35 % 6.85 % 8.32 % Book value per share $ 21.03 $ 21.90 $ 22.63 $ 23.99 $ 23.85 $ 21.03 $ 23.85 Tangible book value per share (1) $ 9.48 $ 10.27 $ 10.97 $ 12.26 $ 13.09 $ 9.48 $ 13.09 Common equity tier 1 ratio (3) 10.82 % 10.91 % 10.87 % 10.85 % 11.55 % 10.82 % 11.55 % Tier 1 ratio (3) 11.17 % 11.28 % 11.24 % 11.22 % 11.92 % 11.17 % 11.92 % Total capital ratio (3) 13.73 % 13.94 % 13.97 % 14.11 % 14.97 % 13.73 % 14.97 % Leverage ratio (3) 8.88 % 8.76 % 8.64 % 8.70 % 9.05 % 8.88 % 9.05 % AVERAGE BALANCE SHEET ITEMS Loans (4) $ 9,597,197 $ 9,367,820 $ 9,266,774 $ 9,283,227 $ 9,502,750 $ 9,411,807 $ 9,760,545 Investment securities 4,003,472 4,118,287 4,308,059 4,343,513 4,189,253 4,142,157 4,035,639 Interest-bearing deposits with other banks 317,146 294,136 273,763 166,904 32,400 295,174 41,582 Total earning assets $ 13,917,815 $ 13,780,243 $ 13,848,596 $ 13,793,644 $ 13,724,403 $ 13,849,138 $ 13,837,766 Total assets $ 16,385,989 $ 16,185,978 $ 16,184,919 $ 16,036,417 $ 15,995,808 $ 16,253,031 $ 16,084,472 Noninterest-bearing deposits $ 4,176,242 $ 4,224,842 $ 4,160,175 $ 4,191,457 $ 3,981,404 $ 4,187,145 $ 3,942,210 Interest-bearing deposits 8,194,781 8,312,876 8,623,800 8,693,792 8,685,949 8,375,581 8,642,339 Total deposits $ 12,371,023 $ 12,537,718 $ 12,783,975 $ 12,885,249 $ 12,667,353 $ 12,562,726 $ 12,584,549 Borrowings $ 1,406,718 $ 1,079,596 $ 721,695 $ 396,743 $ 562,964 $ 1,071,845 $ 731,634 Shareholders' equity $ 2,089,179 $ 2,099,670 $ 2,225,495 $ 2,241,820 $ 2,261,293 $ 2,137,615 $ 2,265,868 CREDIT QUALITY RATIOS Allowance to ending loans 1.27 % 1.25 % 1.34 % 1.42 % 1.59 % 1.27 % 1.59 % Allowance to nonaccrual loans 339.95 % 302.87 % 273.09 % 272.76 % 225.73 % 339.95 % 225.73 % Allowance to nonperforming loans 261.11 % 235.08 % 231.98 % 219.96 % 192.35 % 261.11 % 192.35 % Nonperforming loans to total loans 0.49 % 0.53 % 0.58 % 0.65 % 0.83 % 0.49 % 0.83 % Nonaccrual loans to total loans 0.37 % 0.41 % 0.49 % 0.52 % 0.70 % 0.37 % 0.70 % Nonperforming assets to ending loans, plus OREO 0.49 % 0.53 % 0.58 % 0.65 % 0.83 % 0.49 % 0.83 % Nonperforming assets to total assets 0.29 % 0.31 % 0.33 % 0.37 % 0.49 % 0.29 % 0.49 % Classified assets to total assets 0.69 % 0.74 % 0.67 % 0.64 % 1.04 % 0.69 % 1.04 % Net charge-offs to average loans (annualized) 0.07 % 0.08 % 0.10 % 0.32 % 0.10 % 0.08 % 0.24 % (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" inthis 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 standardpractice 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 byallowing them to make peer comparisons. Management also uses these measures to make peer comparisons. (3) September 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, Nine months ended, Sep. 30 , Sep. 30 , 2022 2021 % Change 2022 2021 % Change Interest income Loans and leases, including fees $ 122,170 $ 96,428 26.7 % $ 306,443 $ 292,853 4.6 % Investment securities Taxable 26,331 20,088 31.1 % 72,066 58,219 23.8 % Tax-exempt 5,014 4,282 17.1 % 14,361 14,196 1.2 % Total investment securities interest 31,345 24,370 28.6 % 86,427 72,415 19.3 % Other earning assets 1,597 23 N/M 2,222 76 N/M Total interest income 155,112 120,821 28.4 % 395,092 365,344 8.1 % Interest expense Deposits 6,386 3,320 92.3 % 11,972 11,346 5.5 % Short-term borrowings 6,158 68 N/M 8,041 188 N/M Long-term borrowings 4,676 4,023 16.2 % 13,832 12,498 10.7 % Total interest expense 17,220 7,411 132.4 % 33,845 24,032 40.8 % Net interest income 137,892 113,410 21.6 % 361,247 341,312 5.8 % Provision for credit losses-loans and leases 7,898 (8,193) (196.4) % (1,958) (9,499) (79.4) % Provision for credit losses-unfunded commitments 386 (1,951) (119.8) % 3,641 (896) (506.4) % Net interest income after provision for credit losses 129,608 123,554 4.9 % 359,564 351,707 2.2 % Noninterest income Service charges on deposit accounts 6,279 8,548 (26.5) % 21,656 23,231 (6.8) % Trust and wealth management fees 5,487 5,896 (6.9) % 17,858 17,742 0.7 % Bankcard income 3,484 3,838 (9.2) % 10,644 10,698 (0.5) % Client derivative fees 1,447 2,273 (36.3) % 3,619 5,624 (35.7) % Foreign exchange income 11,752 9,191 27.9 % 35,373 31,985 10.6 % Leasing business income 7,127 0 100.0 % 20,450 0 100.0 % Net gains from sales of loans 3,729 8,586 (56.6) % 12,842 26,529 (51.6) % Net gain (loss) on sale of investment securities (179) (314) (43.0) % (176) (745) (76.4) % Net gain (loss) on equity securities (701) 108 N/M (1,954) 381 N/M Other 4,109 4,411 (6.8) % 13,294 10,401 27.8 % Total noninterest income 42,534 42,537 0.0 % 133,606 125,846 6.2 % Noninterest expenses Salaries and employee benefits 66,808 61,717 8.2 % 195,747 183,754 6.5 % Net occupancy 5,669 5,571 1.8 % 16,774 16,810 (0.2) % Furniture and equipment 3,222 3,318 (2.9) % 9,990 10,658 (6.3) % Data processing 8,497 7,951 6.9 % 25,095 23,102 8.6 % Marketing 2,523 2,435 3.6 % 6,546 5,831 12.3 % Communication 657 669 (1.8) % 1,993 2,253 (11.5) % Professional services 2,346 2,199 6.7 % 6,719 5,678 18.3 % State intangible tax 1,090 1,202 (9.3) % 3,311 3,605 (8.2) % FDIC assessments 1,885 1,466 28.6 % 5,021 4,177 20.2 % Intangible amortization 2,783 2,479 12.3 % 8,612 7,438 15.8 % Leasing business expense 5,746 0 100.0 % 14,302 0 100.0 % Other 23,842 10,051 137.2 % 36,797 27,901 31.9 % Total noninterest expenses 125,068 99,058 26.3 % 330,907 291,207 13.6 % Income before income taxes 47,074 67,033 (29.8) % 162,263 186,346 (12.9) % Income tax expense (benefit) (8,631) 7,021 (222.9) % 13,737 28,131 (51.2) % Net income $ 55,705 $ 60,012 (7.2) % $ 148,526 $ 158,215 (6.1) % ADDITIONAL DATA Net earnings per share - basic $ 0.60 $ 0.64 $ 1.59 $ 1.65 Net earnings per share - diluted $ 0.59 $ 0.63 $ 1.57 $ 1.64 Dividends declared per share $ 0.23 $ 0.23 $ 0.69 $ 0.69 Return on average assets 1.35 % 1.49 % 1.22 % 1.32 % Return on average shareholders' equity 10.58 % 10.53 % 9.29 % 9.34 % Interest income $ 155,112 $ 120,821 28.4 % $ 395,092 $ 365,344 8.1 % Tax equivalent adjustment 1,712 1,434 19.4 % 4,804 4,705 2.1 % Interest income - tax equivalent 156,824 122,255 28.3 % 399,896 370,049 8.1 % Interest expense 17,220 7,411 132.4 % 33,845 24,032 40.8 % Net interest income - tax equivalent $ 139,604 $ 114,844 21.6 % $ 366,051 $ 346,017 5.8 % Net interest margin 3.93 % 3.28 % 3.49 % 3.30 % Net interest margin (fully tax equivalent) (1) 3.98 % 3.32 % 3.53 % 3.34 % Full-time equivalent employees 2,072 2,026 (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 Third Second First Year to % Change Quarter Quarter Quarter Date Linked Qtr. Interest income Loans and leases, including fees $ 122,170 $ 97,091 $ 87,182 $ 306,443 25.8 % Investment securities Taxable 26,331 23,639 22,096 72,066 11.4 % Tax-exempt 5,014 4,916 4,431 14,361 2.0 % Total investment securities interest 31,345 28,555 26,527 86,427 9.8 % Other earning assets 1,597 505 120 2,222 216.2 % Total interest income 155,112 126,151 113,829 395,092 23.0 % Interest expense Deposits 6,386 2,963 2,623 11,972 115.5 % Short-term borrowings 6,158 1,566 317 8,041 293.2 % Long-term borrowings 4,676 4,612 4,544 13,832 1.4 % Total interest expense 17,220 9,141 7,484 33,845 88.4 % Net interest income 137,892 117,010 106,345 361,247 17.8 % Provision for credit losses-loans and leases 7,898 (4,267) (5,589) (1,958) (285.1) % Provision for credit losses-unfunded commitments 386 3,481 (226) 3,641 (88.9) % Net interest income after provision for credit losses 129,608 117,796 112,160 359,564 10.0 % Noninterest income Service charges on deposit accounts 6,279 7,648 7,729 21,656 (17.9) % Trust and wealth management fees 5,487 6,311 6,060 17,858 (13.1) % Bankcard income 3,484 3,823 3,337 10,644 (8.9) % Client derivative fees 1,447 1,369 803 3,619 5.7 % Foreign exchange income 11,752 13,470 10,151 35,373 (12.8) % Leasing business income 7,127 7,247 6,076 20,450 (1.7) % Net gains from sales of loans 3,729 5,241 3,872 12,842 (28.8) % Net gain (loss) on sale of investment securities (179) 0 3 (176) (100.0) % Net gain (loss) on equity securities (701) (1,054) (199) (1,954) (33.5) % Other 4,109 5,723 3,462 13,294 (28.2) % Total noninterest income 42,534 49,778 41,294 133,606 (14.6) % Noninterest expenses Salaries and employee benefits 66,808 64,992 63,947 195,747 2.8 % Net occupancy 5,669 5,359 5,746 16,774 5.8 % Furniture and equipment 3,222 3,201 3,567 9,990 0.7 % Data processing 8,497 8,334 8,264 25,095 2.0 % Marketing 2,523 2,323 1,700 6,546 8.6 % Communication 657 670 666 1,993 (1.9) % Professional services 2,346 2,214 2,159 6,719 6.0 % State intangible tax 1,090 1,090 1,131 3,311 0.0 % FDIC assessments 1,885 1,677 1,459 5,021 12.4 % Intangible amortization 2,783 2,915 2,914 8,612 (4.5) % Leasing business expense 5,746 4,687 3,869 14,302 22.6 % Other 23,842 5,572 7,383 36,797 327.9 % Total noninterest expenses 125,068 103,034 102,805 330,907 21.4 % Income before income taxes 47,074 64,540 50,649 162,263 (27.1) % Income tax expense (benefit) (8,631) 13,020 9,348 13,737 (166.3) % Net income $ 55,705 $ 51,520 $ 41,301 $ 148,526 8.1 % ADDITIONAL DATA Net earnings per share - basic $ 0.60 $ 0.55 $ 0.44 $ 1.59 Net earnings per share - diluted $ 0.59 $ 0.55 $ 0.44 $ 1.57 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.69 Return on average assets 1.35 % 1.28 % 1.03 % 1.22 % Return on average shareholders' equity 10.58 % 9.84 % 7.53 % 9.29 % Interest income $ 155,112 $ 126,151 $ 113,829 $ 395,092 23.0 % Tax equivalent adjustment 1,712 1,625 1,467 4,804 5.4 % Interest income - tax equivalent 156,824 127,776 115,296 399,896 22.7 % Interest expense 17,220 9,141 7,484 33,845 88.4 % Net interest income - tax equivalent $ 139,604 $ 118,635 $ 107,812 $ 366,051 17.7 % Net interest margin 3.93 % 3.41 % 3.11 % 3.49 % Net interest margin (fully tax equivalent) (1) 3.98 % 3.45 % 3.16 % 3.53 % Full-time equivalent employees 2,072 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. Managementbelieves 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 usefulinformation 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. Managementbelieves 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 usefulinformation 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) Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , % Change % Change 2022 2022 2022 2021 2021 Linked Qtr. Comp Qtr. ASSETS Cash and due from banks $ 195,553 $ 217,481 $ 214,571 $ 220,031 $ 209,748 (10.1) % (6.8) % Interest-bearing deposits with other banks 338,978 270,042 243,004 214,811 29,799 25.5 % 1,037.5 % Investment securities available-for-sale 3,531,353 3,843,580 3,957,882 4,207,846 4,114,094 (8.1) % (14.2) % Investment securities held-to-maturity 85,823 88,057 92,597 98,420 103,886 (2.5) % (17.4) % Other investments 138,767 132,151 114,563 102,971 97,831 5.0 % 41.8 % Loans held for sale 10,684 22,044 12,670 29,482 33,835 (51.5) % (68.4) % Loans and leases Commercial and industrial 3,139,219 2,927,175 2,800,209 2,720,028 2,602,848 7.2 % 20.6 % Lease financing 176,072 146,639 125,867 109,624 67,855 20.1 % 159.5 % Construction real estate 489,446 449,734 479,744 455,894 477,004 8.8 % 2.6 % Commercial real estate 3,976,345 4,007,037 4,031,484 4,226,614 4,438,374 (0.8) % (10.4) % Residential real estate 1,024,596 965,387 913,838 896,069 922,492 6.1 % 11.1 % Home equity 737,318 725,700 707,973 708,399 709,050 1.6 % 4.0 % Installment 202,267 146,680 132,197 119,454 96,077 37.9 % 110.5 % Credit card 52,173 52,065 50,305 52,217 47,231 0.2 % 10.5 % Total loans 9,797,436 9,420,417 9,241,617 9,288,299 9,360,931 4.0 % 4.7 % Less: Allowance for credit losses (124,096) (117,885) (124,130) (131,992) (148,903) 5.3 % (16.7) % Net loans 9,673,340 9,302,532 9,117,487 9,156,307 9,212,028 4.0 % 5.0 % Premises and equipment 189,067 191,099 190,975 193,040 192,580 (1.1) % (1.8) % Operating leases 84,851 82,659 61,927 60,811 0 2.7 % 100.0 % Goodwill 998,422 999,959 999,959 1,000,749 937,771 (0.2) % 6.5 % Other intangibles 96,528 99,019 101,673 104,367 71,663 (2.5) % 34.7 % Accrued interest and other assets 1,280,427 995,091 901,842 940,306 953,358 28.7 % 34.3 % Total Assets $ 16,623,793 $ 16,243,714 $ 16,009,150 $ 16,329,141 $ 15,956,593 2.3 % 4.2 % LIABILITIES Deposits Interest-bearing demand $ 2,980,465 $ 3,096,365 $ 3,246,646 $ 3,198,745 $ 2,916,860 (3.7) % 2.2 % Savings 3,980,020 4,029,717 4,188,867 4,157,374 4,223,905 (1.2) % (5.8) % Time 1,242,412 1,026,918 1,121,966 1,330,263 1,517,419 21.0 % (18.1) % Total interest-bearing deposits 8,202,897 8,153,000 8,557,479 8,686,382 8,658,184 0.6 % (5.3) % Noninterest-bearing 4,137,038 4,124,111 4,261,429 4,185,572 4,019,197 0.3 % 2.9 % Total deposits 12,339,935 12,277,111 12,818,908 12,871,954 12,677,381 0.5 % (2.7) % Federal funds purchased and securities sold under agreements to repurchase 3,535 0 0 51,203 81,850 100.0 % (95.7) % FHLB short-term borrowings 972,600 896,000 185,000 225,000 107,000 8.5 % 809.0 % Other 184,912 152,226 57,247 20,000 0 21.5 % 100.0 % Total short-term borrowings 1,161,047 1,048,226 242,247 296,203 188,850 10.8 % 514.8 % Long-term debt 355,116 358,578 379,840 409,832 313,230 (1.0) % 13.4 % Total borrowed funds 1,516,163 1,406,804 622,087 706,035 502,080 7.8 % 202.0 % Accrued interest and other liabilities 773,563 491,129 430,710 492,210 540,962 57.5 % 43.0 % Total Liabilities 14,629,661 14,175,044 13,871,705 14,070,199 13,720,423 3.2 % 6.6 % SHAREHOLDERS' EQUITY Common stock 1,631,696 1,637,237 1,634,903 1,640,358 1,637,065 (0.3) % (0.3) % Retained earnings 920,943 887,006 857,178 837,473 812,082 3.8 % 13.4 % Accumulated other comprehensive income (loss) (354,570) (243,328) (142,477) (433) 14,230 45.7 % N/M Treasury stock, at cost (203,937) (212,245) (212,159) (218,456) (227,207) (3.9) % (10.2) % Total Shareholders' Equity 1,994,132 2,068,670 2,137,445 2,258,942 2,236,170 (3.6) % (10.8) % Total Liabilities and Shareholders' Equity $ 16,623,793 $ 16,243,714 $ 16,009,150 $ 16,329,141 $ 15,956,593 2.3 % 4.2 % FIRST FINANCIAL BANCORP . AVERAGE CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands) (Unaudited) Quarterly Averages Year-to-Date Averages Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , Sep. 30 , 2022 2022 2022 2021 2021 2022 2021 ASSETS Cash and due from banks $ 228,068 $ 248,463 $ 241,271 $ 253,091 $ 245,212 $ 239,219 $ 238,531 Interest-bearing deposits with other banks 317,146 294,136 273,763 166,904 32,400 295,174 41,582 Investment securities 4,003,472 4,118,287 4,308,059 4,343,513 4,189,253 4,142,157 4,035,639 Loans held for sale 12,283 15,446 15,589 24,491 28,365 14,427 28,796 Loans and leases Commercial and industrial 3,040,547 2,884,373 2,736,613 2,552,686 2,634,306 2,888,291 2,870,954 Lease financing 158,667 134,334 115,703 67,537 67,159 136,392 67,918 Construction real estate 469,489 460,609 474,278 460,588 567,091 468,108 614,737 Commercial real estate 3,969,935 4,025,493 4,139,072 4,391,328 4,413,003 4,044,214 4,375,280 Residential real estate 998,476 936,165 903,567 917,399 937,969 946,417 952,939 Home equity 728,791 716,219 703,714 709,954 710,794 716,333 714,723 Installment 164,063 140,145 125,579 106,188 93,937 143,403 86,740 Credit card 54,946 55,036 52,659 53,056 50,126 54,222 48,458 Total loans 9,584,914 9,352,374 9,251,185 9,258,736 9,474,385 9,397,380 9,731,749 Less: Allowance for credit losses (119,000) (123,950) (129,601) (144,756) (157,727) (124,145) (168,449) Net loans 9,465,914 9,228,424 9,121,584 9,113,980 9,316,658 9,273,235 9,563,300 Premises and equipment 190,738 191,895 192,832 192,941 193,775 191,814 200,273 Operating leases 83,970 73,862 61,297 659 0 73,126 0 Goodwill 999,690 999,958 1,000,238 938,453 937,771 999,960 937,771 Other intangibles 97,781 100,354 103,033 71,006 72,529 100,370 74,335 Accrued interest and other assets 986,927 915,153 867,253 931,379 979,845 923,549 964,245 Total Assets $ 16,385,989 $ 16,185,978 $ 16,184,919 $ 16,036,417 $ 15,995,808 $ 16,253,031 $ 16,084,472 LIABILITIES Deposits Interest-bearing demand $ 3,105,547 $ 3,180,846 $ 3,246,919 $ 3,069,416 $ 2,960,388 $ 3,177,253 $ 2,961,043 Savings 4,036,565 4,076,380 4,145,615 4,195,504 4,150,610 4,085,787 4,021,895 Time 1,052,669 1,055,650 1,231,266 1,428,872 1,574,951 1,112,541 1,659,401 Total interest-bearing deposits 8,194,781 8,312,876 8,623,800 8,693,792 8,685,949 8,375,581 8,642,339 Noninterest-bearing 4,176,242 4,224,842 4,160,175 4,191,457 3,981,404 4,187,145 3,942,210 Total deposits 12,371,023 12,537,718 12,783,975 12,885,249 12,667,353 12,562,726 12,584,549 Federal funds purchased and securities sold under agreements to repurchase 32,637 24,229 45,358 79,382 186,401 34,028 188,461 FHLB short-term borrowings 892,786 586,846 257,800 2,445 63,463 581,470 57,163 Other 131,237 109,353 33,297 654 0 91,654 0 Total short-term borrowings 1,056,660 720,428 336,455 82,481 249,864 707,152 245,624 Long-term debt 350,058 359,168 385,240 314,262 313,100 364,693 486,010 Total borrowed funds 1,406,718 1,079,596 721,695 396,743 562,964 1,071,845 731,634 Accrued interest and other liabilities 519,069 468,994 453,754 512,605 504,198 480,845 502,421 Total Liabilities 14,296,810 14,086,308 13,959,424 13,794,597 13,734,515 14,115,416 13,818,604 SHAREHOLDERS' EQUITY Common stock 1,631,078 1,635,990 1,638,321 1,637,828 1,635,833 1,635,103 1,635,552 Retained earnings 899,524 866,910 841,652 822,500 783,760 869,574 755,066 Accumulated other comprehensive loss (236,566) (190,949) (38,448) 8,542 36,917 (156,047) 34,981 Treasury stock, at cost (204,857) (212,281) (216,030) (227,050) (195,217) (211,015) (159,731) Total Shareholders' Equity 2,089,179 2,099,670 2,225,495 2,241,820 2,261,293 2,137,615 2,265,868 Total Liabilities and Shareholders' Equity $ 16,385,989 $ 16,185,978 $ 16,184,919 $ 16,036,417 $ 15,995,808 $ 16,253,031 $ 16,084,472 FIRST FINANCIAL BANCORP . NET INTEREST MARGIN RATE/VOLUME ANALYSIS (Dollars in thousands) (Unaudited) Quarterly Averages Year-to-Date Averages September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance Interest Yield Balance Interest Yield Balance Interest Yield Balance Yield Balance Yield Earning assets Investments: Investment securities $ 4,003,472 $ 31,345 3.11 % $ 4,118,287 $ 28,555 2.78 % $ 4,189,253 $ 24,370 2.31 % $ 4,142,157 2.79 % $ 4,035,639 2.40 % Interest-bearing deposits with other banks 317,146 1,597 2.00 % 294,136 505 0.69 % 32,400 23 0.28 % 295,174 1.01 % 41,582 0.24 % Gross loans (1) 9,597,197 122,170 5.05 % 9,367,820 97,091 4.16 % 9,502,750 96,428 4.03 % 9,411,807 4.35 % 9,760,545 4.01 % Total earning assets 13,917,815 155,112 4.42 % 13,780,243 126,151 3.67 % 13,724,403 120,821 3.49 % 13,849,138 3.81 % 13,837,766 3.53 % Nonearning assets Allowance for credit losses (119,000) (123,950) (157,727) (124,145) (168,449) Cash and due from banks 228,068 248,463 245,212 239,219 238,531 Accrued interest and other assets 2,359,106 2,281,222 2,183,920 2,288,819 2,176,624 Total assets $ 16,385,989 $ 16,185,978 $ 15,995,808 $ 16,253,031 $ 16,084,472 Interest-bearing liabilities Deposits: Interest-bearing demand $ 3,105,547 $ 2,404 0.31 % $ 3,180,846 $ 842 0.11 % $ 2,960,388 $ 446 0.06 % $ 3,177,253 0.16 % $ 2,961,043 0.07 % Savings 4,036,565 2,199 0.22 % 4,076,380 1,003 0.10 % 4,150,610 938 0.09 % 4,085,787 0.13 % 4,021,895 0.11 % Time 1,052,669 1,783 0.67 % 1,055,650 1,118 0.42 % 1,574,951 1,936 0.49 % 1,112,541 0.50 % 1,659,401 0.54 % Total interest-bearing deposits 8,194,781 6,386 0.31 % 8,312,876 2,963 0.14 % 8,685,949 3,320 0.15 % 8,375,581 0.19 % 8,642,339 0.18 % Borrowed funds Short-term borrowings 1,056,660 6,158 2.31 % 720,428 1,566 0.87 % 249,864 68 0.11 % 707,152 1.52 % 245,624 0.10 % Long-term debt 350,058 4,676 5.30 % 359,168 4,612 5.15 % 313,100 4,023 5.10 % 364,693 5.07 % 486,010 3.44 % Total borrowed funds 1,406,718 10,834 3.06 % 1,079,596 6,178 2.30 % 562,964 4,091 2.88 % 1,071,845 2.73 % 731,634 2.32 % Total interest-bearing liabilities 9,601,499 17,220 0.71 % 9,392,472 9,141 0.39 % 9,248,913 7,411 0.32 % 9,447,426 0.48 % 9,373,973 0.34 % Noninterest-bearing liabilities Noninterest-bearing demand deposits 4,176,242 4,224,842 3,981,404 4,187,145 3,942,210 Other liabilities 519,069 468,994 504,198 480,845 502,421 Shareholders' equity 2,089,179 2,099,670 2,261,293 2,137,615 2,265,868 Total liabilities & shareholders' equity $ 16,385,989 $ 16,185,978 $ 15,995,808 $ 16,253,031 $ 16,084,472 Net interest income $ 137,892 $ 117,010 $ 113,410 $ 361,247 $ 341,312 Net interest spread 3.71 % 3.28 % 3.17 % 3.33 % 3.19 % Net interest margin 3.93 % 3.41 % 3.28 % 3.49 % 3.30 % Tax equivalent adjustment 0.05 % 0.04 % 0.04 % 0.04 % 0.04 % Net interest margin (fully tax equivalent) 3.98 % 3.45 % 3.32 % 3.53 % 3.34 % (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 $ 3,338 $ (548) $ 2,790 $ 8,430 $ (1,455) $ 6,975 $ 11,789 $ 2,223 $ 14,012 Interest-bearing deposits with other banks 960 132 1,092 140 1,434 1,574 237 1,909 2,146 Gross loans (2) 20,863 4,216 25,079 24,540 1,202 25,742 24,945 (11,355) 13,590 Total earning assets 25,161 3,800 28,961 33,110 1,181 34,291 36,971 (7,223) 29,748 Interest-bearing liabilities Total interest-bearing deposits $ 3,445 $ (22) $ 3,423 $ 3,449 $ (383) $ 3,066 $ 1,007 $ (381) $ 626 Borrowed funds Short-term borrowings 2,587 2,005 4,592 1,388 4,702 6,090 2,605 5,248 7,853 Long-term debt 134 (70) 64 159 494 653 5,935 (4,601) 1,334 Total borrowed funds 2,721 1,935 4,656 1,547 5,196 6,743 8,540 647 9,187 Total interest-bearing liabilities 6,166 1,913 8,079 4,996 4,813 9,809 9,547 266 9,813 Net interest income (1) $ 18,995 $ 1,887 $ 20,882 $ 28,114 $ (3,632) $ 24,482 $ 27,424 $ (7,489) $ 19,935 (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) Nine months ended Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , Sep. 30 , Sep. 30 , 2022 2022 2022 2021 2021 2022 2021 ALLOWANCE FOR CREDIT LOSS ACTIVITY Balance at beginning of period $ 117,885 $ 124,130 $ 131,992 $ 148,903 $ 159,590 $ 131,992 $ 175,679 Purchase accounting ACL for PCD 0 0 0 17 0 0 0 Provision for credit losses 7,898 (4,267) (5,589) (9,525) (8,193) (1,958) (9,499) Gross charge-offs Commercial and industrial 1,947 773 2,845 1,364 2,617 5,565 14,256 Lease financing 13 8 131 0 0 152 0 Construction real estate 0 0 0 1,496 0 0 2 Commercial real estate 3 3,419 0 9,150 1,030 3,422 4,321 Residential real estate 119 4 22 6 74 145 121 Home equity 45 22 21 22 200 88 1,051 Installment 294 361 177 184 37 832 150 Credit card 237 212 246 149 230 695 631 Total gross charge-offs 2,658 4,799 3,442 12,371 4,188 10,899 20,532 Recoveries Commercial and industrial 90 177 379 201 869 646 1,411 Lease financing 13 3 33 0 0 49 0 Construction real estate 0 0 0 0 0 0 3 Commercial real estate 561 2,194 222 4,292 223 2,977 493 Residential real estate 35 34 90 74 56 159 154 Home equity 185 360 265 303 426 810 920 Installment 29 47 21 27 53 97 124 Credit card 58 6 159 71 67 223 150 Total recoveries 971 2,821 1,169 4,968 1,694 4,961 3,255 Total net charge-offs 1,687 1,978 2,273 7,403 2,494 5,938 17,277 Ending allowance for credit losses $ 124,096 $ 117,885 $ 124,130 $ 131,992 $ 148,903 $ 124,096 $ 148,903 NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) Commercial and industrial 0.24 % 0.08 % 0.37 % 0.18 % 0.26 % 0.23 % 0.60 % Lease financing 0.00 % 0.01 % 0.34 % 0.00 % 0.00 % 0.10 % 0.00 % Construction real estate 0.00 % 0.00 % 0.00 % 1.29 % 0.00 % 0.00 % 0.00 % Commercial real estate (0.06) % 0.12 % (0.02) % 0.44 % 0.07 % 0.01 % 0.12 % Residential real estate 0.03 % (0.01) % (0.03) % (0.03) % 0.01 % 0.00 % 0.00 % Home equity (0.08) % (0.19) % (0.14) % (0.16) % (0.13) % (0.13) % 0.02 % Installment 0.64 % 0.90 % 0.50 % 0.59 % (0.07) % 0.69 % 0.04 % Credit card 1.29 % 1.50 % 0.67 % 0.58 % 1.29 % 1.16 % 1.33 % Total net charge-offs 0.07 % 0.08 % 0.10 % 0.32 % 0.10 % 0.08 % 0.24 % COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS Nonaccrual loans (1) Commercial and industrial $ 8,719 $ 11,675 $ 14,390 $ 17,362 $ 15,160 $ 8,719 $ 15,160 Lease financing 376 217 249 203 0 376 0 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 13,435 14,650 19,843 19,512 38,564 13,435 38,564 Residential real estate 10,250 8,879 7,432 8,305 9,416 10,250 9,416 Home equity 3,445 3,331 3,377 2,922 2,735 3,445 2,735 Installment 279 170 163 88 91 279 91 Nonaccrual loans 36,504 38,922 45,454 48,392 65,966 36,504 65,966 Accruing troubled debt restructurings (TDRs) 11,022 11,225 8,055 11,616 11,448 11,022 11,448 Total nonperforming loans 47,526 50,147 53,509 60,008 77,414 47,526 77,414 Other real estate owned (OREO) 22 22 72 98 340 22 340 Total nonperforming assets 47,548 50,169 53,581 60,106 77,754 47,548 77,754 Accruing loans past due 90 days or more 137 142 180 137 104 137 104 Total underperforming assets $ 47,685 $ 50,311 $ 53,761 $ 60,243 $ 77,858 $ 47,685 $ 77,858 Total classified assets $ 115,131 $ 119,769 $ 106,839 $ 104,815 $ 165,462 $ 115,131 $ 165,462 CREDIT QUALITY RATIOS Allowance for credit losses to Nonaccrual loans 339.95 % 302.87 % 273.09 % 272.76 % 225.73 % 339.95 % 225.73 % Nonperforming loans 261.11 % 235.08 % 231.98 % 219.96 % 192.35 % 261.11 % 192.35 % Total ending loans 1.27 % 1.25 % 1.34 % 1.42 % 1.59 % 1.27 % 1.59 % Nonperforming loans to total loans 0.49 % 0.53 % 0.58 % 0.65 % 0.83 % 0.49 % 0.83 % Nonaccrual loans to total loans 0.37 % 0.41 % 0.49 % 0.52 % 0.70 % 0.37 % 0.70 % Nonperforming assets to Ending loans, plus OREO 0.49 % 0.53 % 0.58 % 0.65 % 0.83 % 0.49 % 0.83 % Total assets 0.29 % 0.31 % 0.33 % 0.37 % 0.49 % 0.29 % 0.49 % Nonperforming assets, excluding accruing TDRs to Ending loans, plus OREO 0.37 % 0.41 % 0.49 % 0.52 % 0.71 % 0.37 % 0.71 % Total assets 0.22 % 0.24 % 0.28 % 0.30 % 0.42 % 0.22 % 0.42 % Classified assets to total assets 0.69 % 0.74 % 0.67 % 0.64 % 1.04 % 0.69 % 1.04 % (1) Nonaccrual loans include nonaccrual TDRs of $12.8 million , $9 .5 million, $16 .2 million, $16 .0 million, and 20.3 million, as of September 30, 2022 , June 30, 2022 , March 31, 2022 , December 31, 2021 , and September 30, 2021 , respectively. FIRST FINANCIAL BANCORP . CAPITAL ADEQUACY (Dollars in thousands, except per share data) (Unaudited) Nine months ended, Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , Sep. 30 , Sep. 30 , 2022 2022 2022 2021 2021 2022 2021 PER COMMON SHARE Market Price High $ 23.75 $ 23.03 $ 26.73 $ 25.79 $ 24.06 $ 26.73 $ 26.40 Low $ 19.02 $ 19.09 $ 22.92 $ 22.89 $ 21.48 $ 19.02 $ 17.62 Close $ 21.08 $ 19.40 $ 23.05 $ 24.38 $ 23.41 $ 21.08 $ 23.41 Average shares outstanding - basic 93,582,250 93,555,131 93,383,932 92,903,900 94,289,097 93,507,831 95,752,759 Average shares outstanding - diluted 94,793,766 94,449,817 94,263,925 93,761,909 95,143,930 94,504,453 96,617,600 Ending shares outstanding 94,833,964 94,448,792 94,451,496 94,149,240 93,742,797 94,833,964 93,742,797 Total shareholders' equity $ 1,994,132 $ 2,068,670 $ 2,137,445 $ 2,258,942 $ 2,236,170 $ 1,994,132 $ 2,236,170 REGULATORY CAPITAL Preliminary Preliminary Common equity tier 1 capital $ 1,348,413 $ 1,307,259 $ 1,272,115 $ 1,262,789 $ 1,316,059 $ 1,348,413 $ 1,316,059 Common equity tier 1 capital ratio 10.82 % 10.91 % 10.87 % 10.85 % 11.55 % 10.82 % 11.55 % Tier 1 capital $ 1,392,565 $ 1,351,287 $ 1,316,020 $ 1,306,571 $ 1,359,297 $ 1,392,565 $ 1,359,297 Tier 1 ratio 11.17 % 11.28 % 11.24 % 11.22 % 11.92 % 11.17 % 11.92 % Total capital $ 1,711,741 $ 1,670,367 $ 1,635,003 $ 1,642,549 $ 1,706,513 $ 1,711,741 $ 1,706,513 Total capital ratio 13.73 % 13.94 % 13.97 % 14.11 % 14.97 % 13.73 % 14.97 % Total capital in excess of minimum requirement $ 402,662 $ 412,167 $ 405,931 $ 420,118 $ 509,579 $ 402,662 $ 509,579 Total risk-weighted assets $ 12,467,422 $ 11,982,860 $ 11,705,447 $ 11,642,201 $ 11,399,375 $ 12,467,422 $ 11,399,375 Leverage ratio 8.88 % 8.76 % 8.64 % 8.70 % 9.05 % 8.88 % 9.05 % OTHER CAPITAL RATIOS Ending shareholders' equity to ending assets 12.00 % 12.74 % 13.35 % 13.83 % 14.01 % 12.00 % 14.01 % Ending tangible shareholders' equity to ending tangible assets (1) 5.79 % 6.40 % 6.95 % 7.58 % 8.21 % 5.79 % 8.21 % Average shareholders' equity to average assets 12.75 % 12.97 % 13.75 % 13.98 % 14.14 % 13.15 % 14.09 % Average tangible shareholders' equity to average tangible assets (1) 6.49 % 6.62 % 7.44 % 8.20 % 8.35 % 6.85 % 8.32 % REPURCHASE PROGRAM (2) Shares repurchased 0 0 0 0 2,484,295 0 4,633,355 Average share repurchase price N/A N/A N/A N/A $ 23.04 N/A $ 23.33 Total cost of shares repurchased N/A N/A N/A N/A $ 57,231 N/A $ 108,077 (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" inthis 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-third-quarter-2022-financial-results-301655303.html SOURCE First Financial Bancorp .

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