First Financial Bancorp Announces Third Quarter 2023 Financial Results and Quarterly Dividend

About this update from First Financial Bancorp.

Earnings per diluted share of $0.66 ; $0.67 on an adjusted (1) basis; 10% increase YoY Return on average assets of 1.48%; 1.49% on an adjusted (1) basis Net interest margin on FTE basis (1) of 4.33%; 15 bp decrease from linked quarter Loan growth of $96.6 million ; 3.6% on an annualized basis Average deposit balances increased 3.8% on an annualized basis, excluding brokered deposits Strong adjusted (1) fee income of $56.8 million driven by the leasing and wealth management Quarterly dividend of $0.23 approved by Board of Directors CINCINNATI , Oct. 24, 2023 /PRNewswire/ -- First Financial Bancorp . (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2023 . For the three months ended September 30, 2023 , the Company reported net income of $63.1 million , or $0.66 per diluted common share. These results compare to net income of $65.7 million , or $0.69 per diluted common share, for the second quarter of 2023. For the nine months ended September 30, 2023 , First Financial had earnings per diluted share of $2.09 compared to $1.57 for the same period in 2022. Return on average assets for the third quarter of 2023 was 1.48% while return on average tangible common equity was 23.60%(1). These compare to return on average assets of 1.55% and return on average tangible common equity of 25.27%(1) in the second quarter of 2023. Third quarter 2023 highlights include: Net interest margin of 4.28%, or 4.33% on a fully tax-equivalent basis(1) 15 bp decrease to 4.33% from 4.48% in the second quarter due to increasing deposit costs Higher asset yields significantly offset 37 bp increase in cost of deposits Average deposit balances increased $73.3 million with growth in money market accounts and retail CDs offsetting declines in noninterest bearing checking and savings accounts Noninterest income of $56.6 million , or $56.8 million as adjusted(1) Foreign exchange income of $13.4 million reflected continued strong activity Record wealth management fees of $6.9 million ; 3.4% increase from linked quarter Leasing business income of $14.5 million ; 41.6% increase from linked quarter Adjusted(1) $0.2 million for losses on investment securities and other items not expected to recur Noninterest expenses of $122.0 million , or $121.5 million as adjusted(1) $1.4 million increase from linked quarter driven primarily by higher employee costs, leasing expenses and fraud losses Second quarter adjustments(1) include costs related to our online banking conversion and other costs not expected to recur such as acquisition, severance and branch consolidation costs Efficiency ratio of 57.5%; 57.3% as adjusted(1) ______________________________________________________________________________ (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 December 31, 2022 and September 30, 2022 include assets acquired and liabilities assumed in the acquisition of Summit Financial Group . 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. These fair value measurements were considered final as of December 31, 2022 . Moderate loan growth during the quarter Loan balances increased $96.6 million compared to the first quarter Growth of 3.6% on an annualized basis Residential mortgages and finance leases drove quarterly growth Total Allowance for Credit Losses of $162.2 million ; Total quarterly provision expense of $11.7 million Loans and leases - ACL of $145.2 million ; decreased 5 bps to 1.36% of total loans Unfunded Commitments - ACL of $17.0 million Provision expense driven by net charge-offs; Classified assets increased slightly to $140.6 million Net charge-offs 61 bps of total loans and included $6.1 million from loan sale and $6.9 million from a COVID impacted business Capital ratios remain solid Total capital ratio increased 7 bps to 13.51% Tier 1 common equity increased 26 bps to 11.60% Tangible common equity decreased 6 bps to 6.50%(1); 9.07%(1) excluding impact from AOCI Tangible book value per share of $10.91 (1) Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on December 15, 2023 to shareholders of record as of December 1, 2023 . Archie Brown , President and CEO, commented on the quarter, "Overall, I am pleased with our third quarter performance. Strong net interest income and robust fee income led to a 13% increase in net income from the third quarter of 2022. Adjusted return on assets was 1.49% and adjusted return on average tangible common equity was 23.8%. As expected, higher deposit costs led to a slight reduction in earnings on a linked quarter basis. Even so, our net interest margin was 4.33% for the quarter, which was at the high end of our expectations." Mr. Brown continued, "Loan growth was in line with expectations for the period, led by growth in the Leasing and Mortgage portfolios. We expect moderate loan growth over the remainder of the year. Deposit balances were stable during the quarter. While the change in mix from non-interest bearing to CDs and Money Market accounts continued, we experienced slight growth in total balances and our loan to deposit ratio remained flat at 82%. Our fee income continued to exceed expectations this quarter, with strong performance from wealth management, equipment leasing, Bannockburn, and mortgage banking." Mr. Brown commented on asset quality, "Credit trends were mixed during the period, and we experienced elevated net charge-offs. During the third quarter we elected to sell approximately $32 million in commercial real estate loans and incurred a $6.1 million loss on the sale. We also recorded a $6.9 million loss on a large C&I loan that was negatively impacted during Covid and has been unable to rebound in the period since. Additionally, nonaccrual loan balances increased during the period due to the downgrade of one office loan whose major tenant vacated the space during the quarter. Classified Assets remain low and we expect provision expense to to be fairly stable in the fourth quarter." Mr. Brown concluded, "We remain pleased with our high net interest margin, favorable fee income trends and robust earnings. During the quarter, our regulatory capital levels strengthened, and our strong earnings helped to maintain the tangible common equity ratio despite the negative impact to AOCI from the increase in market rates. We are encouraged by our performance in 2023 and we believe we are well positioned to navigate the current economic environment and continue to deliver strong results." Full detail of the Company's third quarter 2023 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 Wednesday, October 25, 2023 at 8:30 a.m. Eastern Time . Members of the public who would like to listen to the conference call should dial (888) 550-5723 ( U.S. toll free) or (646) 960-0471 ( U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 ( U.S. toll free), (647) 362-9199 ( U.S. local), access code 5048068. The recording will be available until November 8, 2023 . 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, 2022 , 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, 2023 , the Company had $17.1 billion in assets, $10.6 billion in loans, $12.9 billion in deposits and $2.1 billion in shareholders' equity. The Company's subsidiary, First Financial Bank , founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate , Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.3 billion in assets under management as of September 30, 2023 . The Company operated 130 full service banking centers as of September 30, 2023 , 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, Nine months ended, Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , Sep. 30 , 2023 2023 2023 2022 2022 2023 2022 RESULTS OF OPERATIONS Net income $ 63,061 $ 65,667 $ 70,403 $ 69,086 $ 55,705 $ 99,131 $ 148,526 Net earnings per share - basic $ 0.67 $ 0.70 $ 0.75 $ 0.74 $ 0.60 $ 2.12 $ 1.59 Net earnings per share - diluted $ 0.66 $ 0.69 $ 0.74 $ 0.73 $ 0.59 $ 2.09 $ 1.57 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 1.48 % 1.55 % 1.69 % 1.63 % 1.35 % 1.57 % 1.22 % Return on average shareholders' equity 11.62 % 12.32 % 13.71 % 13.64 % 10.58 % 12.53 % 9.29 % Return on average tangible shareholders' equity (1) 23.60 % 25.27 % 29.02 % 29.93 % 22.29 % 25.87 % 19.14 % Net interest margin 4.28 % 4.43 % 4.51 % 4.43 % 3.93 % 4.41 % 3.49 % Net interest margin (fully tax equivalent) (1)(2) 4.33 % 4.48 % 4.55 % 4.47 % 3.98 % 4.45 % 3.53 % Ending shareholders' equity as a percent of ending assets 12.49 % 12.54 % 12.53 % 12.01 % 12.00 % 12.49 % 12.00 % Ending tangible shareholders' equity as a percent of: Ending tangible assets (1) 6.50 % 6.56 % 6.47 % 5.95 % 5.79 % 6.50 % 5.79 % Risk-weighted assets (1) 7.88 % 8.03 % 7.87 % 7.32 % 7.21 % 7.88 % 7.21 % Average shareholders' equity as a percent of average assets 12.70 % 12.60 % 12.29 % 11.98 % 12.75 % 12.53 % 13.15 % Average tangible shareholders' equity as a percent of average tangible assets (1) 6.69 % 6.57 % 6.21 % 5.84 % 6.49 % 6.49 % 6.85 % Book value per share $ 22.39 $ 22.52 $ 22.29 $ 21.51 $ 21.03 $ 22.39 $ 21.03 Tangible book value per share (1) $ 10.91 $ 11.02 $ 10.76 $ 9.97 $ 9.48 $ 10.91 $ 9.48 Common equity tier 1 ratio (3) 11.60 % 11.34 % 11.00 % 10.83 % 10.82 % 11.60 % 10.82 % Tier 1 ratio (3) 11.94 % 11.68 % 11.34 % 11.17 % 11.17 % 11.94 % 11.17 % Total capital ratio (3) 13.51 % 13.44 % 13.11 % 13.09 % 13.15 % 13.51 % 13.15 % Leverage ratio (3) 9.59 % 9.33 % 9.03 % 8.89 % 8.88 % 9.59 % 8.88 % AVERAGE BALANCE SHEET ITEMS Loans (4) $ 10,623,734 $ 10,513,505 $ 10,373,302 $ 10,059,119 $ 9,597,197 $ 10,504,431 $ 9,411,807 Investment securities 3,394,237 3,560,453 3,635,317 3,705,304 4,003,472 3,529,119 4,142,157 Interest-bearing deposits with other banks 386,173 329,584 318,026 372,054 317,146 344,844 295,174 Total earning assets $ 14,404,144 $ 14,403,542 $ 14,326,645 $ 14,136,477 $ 13,917,815 $ 14,378,394 $ 13,849,138 Total assets $ 16,951,389 $ 16,968,055 $ 16,942,999 $ 16,767,598 $ 16,385,989 $ 16,954,178 $ 16,253,031 Noninterest-bearing deposits $ 3,493,305 $ 3,663,419 $ 3,954,915 $ 4,225,192 $ 4,176,242 $ 3,702,189 $ 4,187,145 Interest-bearing deposits 9,293,860 9,050,464 8,857,226 8,407,114 8,194,781 9,068,783 8,375,581 Total deposits $ 12,787,165 $ 12,713,883 $ 12,812,141 $ 12,632,306 $ 12,371,023 $ 12,770,972 $ 12,562,726 Borrowings $ 1,403,071 $ 1,523,699 $ 1,434,338 $ 1,489,088 $ 1,406,718 $ 1,453,588 $ 1,071,845 Shareholders' equity $ 2,153,601 $ 2,137,765 $ 2,082,210 $ 2,009,564 $ 2,089,179 $ 2,124,787 $ 2,137,615 CREDIT QUALITY RATIOS Allowance to ending loans 1.36 % 1.41 % 1.36 % 1.29 % 1.27 % 1.36 % 1.27 % Allowance to nonaccrual loans 193.75 % 276.70 % 409.46 % 464.58 % 341.61 % 193.75 % 341.61 % Allowance to nonperforming loans 193.75 % 276.70 % 409.46 % 335.94 % 262.09 % 193.75 % 262.09 % Nonperforming loans to total loans 0.70 % 0.51 % 0.33 % 0.38 % 0.48 % 0.70 % 0.48 % Nonaccrual loans to total loans 0.70 % 0.51 % 0.33 % 0.28 % 0.37 % 0.70 % 0.37 % Nonperforming assets to ending loans, plus OREO 0.71 % 0.51 % 0.33 % 0.39 % 0.48 % 0.71 % 0.48 % Nonperforming assets to total assets 0.44 % 0.32 % 0.21 % 0.23 % 0.28 % 0.44 % 0.28 % Classified assets to total assets 0.82 % 0.81 % 0.94 % 0.75 % 0.69 % 0.82 % 0.69 % Net charge-offs to average loans (annualized) 0.61 % 0.22 % 0.00 % (0.01) % 0.07 % 0.28 % 0.08 % (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) September 30, 2023 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 , 2023 2022 % Change 2023 2022 % Change Interest income Loans and leases, including fees $ 192,261 $ 122,170 57.4 % $ 546,354 $ 306,443 78.3 % Investment securities Taxable 31,297 26,331 18.9 % 95,226 72,066 32.1 % Tax-exempt 3,522 5,014 (29.8) % 10,499 14,361 (26.9) % Total investment securities interest 34,819 31,345 11.1 % 105,725 86,427 22.3 % Other earning assets 5,011 1,597 213.8 % 12,488 2,222 462.0 % Total interest income 232,091 155,112 49.6 % 664,567 395,092 68.2 % Interest expense Deposits 57,069 6,386 793.7 % 132,817 11,972 1,009.4 % Short-term borrowings 14,615 6,158 137.3 % 43,101 8,041 436.0 % Long-term borrowings 4,952 4,676 5.9 % 14,644 13,832 5.9 % Total interest expense 76,636 17,220 345.0 % 190,562 33,845 463.0 % Net interest income 155,455 137,892 12.7 % 474,005 361,247 31.2 % Provision for credit losses-loans and leases 12,907 7,898 63.4 % 34,270 (1,958) N/M Provision for credit losses-unfunded commitments (1,234) 386 (419.7) % (1,393) 3,641 (138.3) % Net interest income after provision for credit losses 143,782 129,608 10.9 % 441,128 359,564 22.7 % Noninterest income Service charges on deposit accounts 6,957 6,279 10.8 % 20,443 21,656 (5.6) % Wealth management fees 6,943 5,487 26.5 % 19,990 17,858 11.9 % Bankcard income 3,406 3,484 (2.2) % 10,690 10,644 0.4 % Client derivative fees 1,612 1,447 11.4 % 4,444 3,619 22.8 % Foreign exchange income 13,384 11,752 13.9 % 45,321 35,373 28.1 % Leasing business income 14,537 7,127 104.0 % 38,466 20,450 88.1 % Net gains from sales of loans 4,086 3,729 9.6 % 10,260 12,842 (20.1) % Net gain (loss) on sale of investment securities (4) (179) (97.8) % (407) (176) 131.3 % Net gain (loss) on equity securities (54) (701) (92.3) % 4 (1,954) (100.2) % Other 5,761 4,109 40.2 % 16,218 13,294 22.0 % Total noninterest income 56,628 42,534 33.1 % 165,429 133,606 23.8 % Noninterest expenses Salaries and employee benefits 75,641 66,808 13.2 % 222,094 195,747 13.5 % Net occupancy 5,809 5,669 2.5 % 17,100 16,774 1.9 % Furniture and equipment 3,341 3,222 3.7 % 10,020 9,990 0.3 % Data processing 8,473 8,497 (0.3) % 27,364 25,095 9.0 % Marketing 2,598 2,523 3.0 % 7,560 6,546 15.5 % Communication 744 657 13.2 % 2,022 1,993 1.5 % Professional services 2,524 2,346 7.6 % 6,778 6,719 0.9 % State intangible tax 981 1,090 (10.0) % 2,930 3,311 (11.5) % FDIC assessments 2,665 1,885 41.4 % 8,297 5,021 65.2 % Intangible amortization 2,600 2,783 (6.6) % 7,801 8,612 (9.4) % Leasing business expense 8,877 5,746 54.5 % 23,545 14,302 64.6 % Other 7,791 23,842 (67.3) % 23,841 36,797 (35.2) % Total noninterest expenses 122,044 125,068 (2.4) % 359,352 330,907 8.6 % Income before income taxes 78,366 47,074 66.5 % 247,205 162,263 52.3 % Income tax expense (benefit) 15,305 (8,631) (277.3) % 48,074 13,737 250.0 % Net income $ 63,061 $ 55,705 13.2 % $ 199,131 $ 148,526 34.1 % ADDITIONAL DATA Net earnings per share - basic $ 0.67 $ 0.60 $ 2.12 $ 1.59 Net earnings per share - diluted $ 0.66 $ 0.59 $ 2.09 $ 1.57 Dividends declared per share $ 0.23 $ 0.23 $ 0.69 $ 0.69 Return on average assets 1.48 % 1.35 % 1.57 % 1.22 % Return on average shareholders' equity 11.62 % 10.58 % 12.53 % 9.29 % Interest income $ 232,091 $ 155,112 49.6 % $ 664,567 $ 395,092 68.2 % Tax equivalent adjustment 1,659 1,712 (3.1) % 4,684 4,804 (2.5) % Interest income - tax equivalent 233,750 156,824 49.1 % 669,251 399,896 67.4 % Interest expense 76,636 17,220 345.0 % 190,562 33,845 463.0 % Net interest income - tax equivalent $ 157,114 $ 139,604 12.5 % $ 478,689 $ 366,051 30.8 % Net interest margin 4.28 % 3.93 % 4.41 % 3.49 % Net interest margin (fully tax equivalent) (1) 4.33 % 3.98 % 4.45 % 3.53 % Full-time equivalent employees 2,121 2,072 (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 Third Second First Year to % Change Quarter Quarter Quarter Date Linked Qtr. Interest income Loans and leases, including fees $ 192,261 $ 184,387 $ 169,706 $ 546,354 4.3 % Investment securities Taxable 31,297 32,062 31,867 95,226 (2.4) % Tax-exempt 3,522 3,513 3,464 10,499 0.3 % Total investment securities interest 34,819 35,575 35,331 105,725 (2.1) % Other earning assets 5,011 3,933 3,544 12,488 27.4 % Total interest income 232,091 223,895 208,581 664,567 3.7 % Interest expense Deposits 57,069 44,292 31,456 132,817 28.8 % Short-term borrowings 14,615 15,536 12,950 43,101 (5.9) % Long-term borrowings 4,952 4,835 4,857 14,644 2.4 % Total interest expense 76,636 64,663 49,263 190,562 18.5 % Net interest income 155,455 159,232 159,318 474,005 (2.4) % Provision for credit losses-loans and leases 12,907 12,719 8,644 34,270 1.5 % Provision for credit losses-unfunded commitments (1,234) (1,994) 1,835 (1,393) (38.1) % Net interest income after provision for credit losses 143,782 148,507 148,839 441,128 (3.2) % Noninterest income Service charges on deposit accounts 6,957 6,972 6,514 20,443 (0.2) % Wealth management fees 6,943 6,713 6,334 19,990 3.4 % Bankcard income 3,406 3,692 3,592 10,690 (7.7) % Client derivative fees 1,612 1,827 1,005 4,444 (11.8) % Foreign exchange income 13,384 15,039 16,898 45,321 (11.0) % Leasing business income 14,537 10,265 13,664 38,466 41.6 % Net gains from sales of loans 4,086 3,839 2,335 10,260 6.4 % Net gain (loss) on sale of investment securities (4) (384) (19) (407) (99.0) % Net gain (loss) on equity securities (54) (82) 140 4 34.1 % Other 5,761 5,377 5,080 16,218 7.1 % Total noninterest income 56,628 53,258 55,543 165,429 6.3 % Noninterest expenses Salaries and employee benefits 75,641 74,199 72,254 222,094 1.9 % Net occupancy 5,809 5,606 5,685 17,100 3.6 % Furniture and equipment 3,341 3,362 3,317 10,020 (0.6) % Data processing 8,473 9,871 9,020 27,364 (14.2) % Marketing 2,598 2,802 2,160 7,560 (7.3) % Communication 744 644 634 2,022 15.5 % Professional services 2,524 2,308 1,946 6,778 9.4 % State intangible tax 981 964 985 2,930 1.8 % FDIC assessments 2,665 2,806 2,826 8,297 (5.0) % Intangible amortization 2,600 2,601 2,600 7,801 0.0 % Leasing business expense 8,877 6,730 7,938 23,545 31.9 % Other 7,791 8,722 7,328 23,841 (10.7) % Total noninterest expenses 122,044 120,615 116,693 359,352 1.2 % Income before income taxes 78,366 81,150 87,689 247,205 (3.4) % Income tax expense (benefit) 15,305 15,483 17,286 48,074 (1.1) % Net income $ 63,061 $ 65,667 $ 70,403 $ 199,131 (4.0) % ADDITIONAL DATA Net earnings per share - basic $ 0.67 $ 0.70 $ 0.75 $ 2.12 Net earnings per share - diluted $ 0.66 $ 0.69 $ 0.74 $ 2.09 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.69 Return on average assets 1.48 % 1.55 % 1.69 % 1.57 % Return on average shareholders' equity 11.62 % 12.32 % 13.71 % 12.53 % Interest income $ 232,091 $ 223,895 $ 208,581 $ 664,567 3.7 % Tax equivalent adjustment 1,659 1,601 1,424 4,684 3.6 % Interest income - tax equivalent 233,750 225,496 210,005 669,251 3.7 % Interest expense 76,636 64,663 49,263 190,562 18.5 % Net interest income - tax equivalent $ 157,114 $ 160,833 $ 160,742 $ 478,689 (2.3) % Net interest margin 4.28 % 4.43 % 4.51 % 4.41 % Net interest margin (fully tax equivalent) (1) 4.33 % 4.48 % 4.55 % 4.45 % Full-time equivalent employees 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 QUARTERLY STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) 2022 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income Loans and leases, including fees $ 152,299 $ 122,170 $ 97,091 $ 87,182 $ 458,742 Investment securities Taxable 30,248 26,331 23,639 22,096 102,314 Tax-exempt 4,105 5,014 4,916 4,431 18,466 Total investment securities interest 34,353 31,345 28,555 26,527 120,780 Other earning assets 3,262 1,597 505 120 5,484 Total interest income 189,914 155,112 126,151 113,829 585,006 Interest expense Deposits 16,168 6,386 2,963 2,623 28,140 Short-term borrowings 11,091 6,158 1,566 317 19,132 Long-term borrowings 4,759 4,676 4,612 4,544 18,591 Total interest expense 32,018 17,220 9,141 7,484 65,863 Net interest income 157,896 137,892 117,010 106,345 519,143 Provision for credit losses-loans and leases 8,689 7,898 (4,267) (5,589) 6,731 Provision for credit losses-unfunded commitments 1,341 386 3,481 (226) 4,982 Net interest income after provision for credit losses 147,866 129,608 117,796 112,160 507,430 Noninterest income Service charges on deposit accounts 6,406 6,279 7,648 7,729 28,062 Wealth management fees 5,648 5,487 6,311 6,060 23,506 Bankcard income 3,736 3,484 3,823 3,337 14,380 Client derivative fees 1,822 1,447 1,369 803 5,441 Foreign exchange income 19,592 11,752 13,470 10,151 54,965 Leasing business income 11,124 7,127 7,247 6,076 31,574 Net gains from sales of loans 2,206 3,729 5,241 3,872 15,048 Net gain (loss) on sale of investment securities (393) (179) 0 3 (569) Net gain (loss) on equity securities 1,315 (701) (1,054) (199) (639) Other 4,579 4,109 5,723 3,462 17,873 Total noninterest income 56,035 42,534 49,778 41,294 189,641 Noninterest expenses Salaries and employee benefits 73,621 66,808 64,992 63,947 269,368 Net occupancy 5,434 5,669 5,359 5,746 22,208 Furniture and equipment 3,234 3,222 3,201 3,567 13,224 Data processing 8,567 8,497 8,334 8,264 33,662 Marketing 2,198 2,523 2,323 1,700 8,744 Communication 690 657 670 666 2,683 Professional services 3,015 2,346 2,214 2,159 9,734 State intangible tax 974 1,090 1,090 1,131 4,285 FDIC assessments 2,173 1,885 1,677 1,459 7,194 Intangible amortization 2,573 2,783 2,915 2,914 11,185 Leasing business expense 6,061 5,746 4,687 3,869 20,363 Other 15,902 23,842 5,572 7,383 52,699 Total noninterest expenses 124,442 125,068 103,034 102,805 455,349 Income before income taxes 79,459 47,074 64,540 50,649 241,722 Income tax expense (benefit) 10,373 (8,631) 13,020 9,348 24,110 Net income $ 69,086 $ 55,705 $ 51,520 $ 41,301 $ 217,612 ADDITIONAL DATA Net earnings per share - basic $ 0.74 $ 0.60 $ 0.55 $ 0.44 $ 2.33 Net earnings per share - diluted $ 0.73 $ 0.59 $ 0.55 $ 0.44 $ 2.30 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 Return on average assets 1.63 % 1.35 % 1.28 % 1.03 % 1.33 % Return on average shareholders' equity 13.64 % 10.58 % 9.84 % 7.53 % 10.34 % Interest income $ 189,914 $ 155,112 $ 126,151 $ 113,829 $ 585,006 Tax equivalent adjustment 1,553 1,712 1,625 1,467 6,357 Interest income - tax equivalent 191,467 156,824 127,776 115,296 591,363 Interest expense 32,018 17,220 9,141 7,484 65,863 Net interest income - tax equivalent $ 159,449 $ 139,604 $ 118,635 $ 107,812 $ 525,500 Net interest margin 4.43 % 3.93 % 3.41 % 3.11 % 3.73 % Net interest margin (fully tax equivalent) (1) 4.47 % 3.98 % 3.45 % 3.16 % 3.77 % Full-time equivalent employees 2,070 2,072 2,096 2,050 (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) Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , % Change % Change 2023 2023 2023 2022 2022 Linked Qtr. Comp Qtr. ASSETS Cash and due from banks $ 220,335 $ 217,385 $ 199,835 $ 207,501 $ 195,553 1.4 % 12.7 % Interest-bearing deposits with other banks 452,867 485,241 305,465 388,182 338,978 (6.7) % 33.6 % Investment securities available-for-sale 3,044,361 3,249,404 3,384,949 3,409,648 3,531,353 (6.3) % (13.8) % Investment securities held-to-maturity 81,236 82,372 83,070 84,021 85,823 (1.4) % (5.3) % Other investments 133,725 141,892 143,606 143,160 138,767 (5.8) % (3.6) % Loans held for sale 12,391 15,267 9,280 7,918 10,684 (18.8) % 16.0 % Loans and leases Commercial and industrial 3,420,873 3,433,162 3,449,289 3,410,272 3,139,219 (0.4) % 9.0 % Lease financing 399,973 360,801 273,898 236,124 176,072 10.9 % 127.2 % Construction real estate 578,824 536,464 525,906 512,050 489,446 7.9 % 18.3 % Commercial real estate 3,992,654 4,048,460 4,056,627 4,052,759 3,976,345 (1.4) % 0.4 % Residential real estate 1,293,470 1,221,484 1,145,069 1,092,265 1,024,596 5.9 % 26.2 % Home equity 743,991 728,711 724,672 733,791 737,318 2.1 % 0.9 % Installment 160,648 165,216 204,372 209,895 202,267 (2.8) % (20.6) % Credit card 56,386 55,911 53,552 51,815 52,173 0.8 % 8.1 % Total loans 10,646,819 10,550,209 10,433,385 10,298,971 9,797,436 0.9 % 8.7 % Less: Allowance for credit losses (145,201) (148,646) (141,591) (132,977) (124,096) (2.3) % 17.0 % Net loans 10,501,618 10,401,563 10,291,794 10,165,994 9,673,340 1.0 % 8.6 % Premises and equipment 192,572 192,077 188,959 189,080 189,067 0.3 % 1.9 % Operating leases 136,883 132,272 153,986 91,738 84,851 3.5 % 61.3 % Goodwill 1,005,868 1,005,828 1,005,738 1,001,507 998,422 0.0 % 0.7 % Other intangibles 86,378 88,662 91,169 93,919 96,528 (2.6) % (10.5) % Accrued interest and other assets 1,186,618 1,078,186 1,076,033 1,220,648 1,280,427 10.1 % (7.3) % Total Assets $ 17,054,852 $ 17,090,149 $ 16,933,884 $ 17,003,316 $ 16,623,793 (0.2) % 2.6 % LIABILITIES Deposits Interest-bearing demand $ 2,880,617 $ 2,919,472 $ 2,761,811 $ 3,037,153 $ 2,980,465 (1.3) % (3.4) % Savings 4,023,455 3,785,445 3,746,403 3,828,139 3,980,020 6.3 % 1.1 % Time 2,572,909 2,484,780 2,336,368 1,700,705 1,242,412 3.5 % 107.1 % Total interest-bearing deposits 9,476,981 9,189,697 8,844,582 8,565,997 8,202,897 3.1 % 15.5 % Noninterest-bearing 3,438,572 3,605,181 3,830,102 4,135,180 4,137,038 (4.6) % (16.9) % Total deposits 12,915,553 12,794,878 12,674,684 12,701,177 12,339,935 0.9 % 4.7 % Federal funds purchased and securities sold under agreements to repurchase 0 0 0 0 3,535 0.0 % 100.0 % FHLB short-term borrowings 755,000 1,050,300 1,089,400 1,130,000 972,600 (28.1) % (22.4) % Other 219,188 165,983 128,160 157,156 184,912 32.1 % 18.5 % Total short-term borrowings 974,188 1,216,283 1,217,560 1,287,156 1,161,047 (19.9) % (16.1) % Long-term debt 340,902 339,963 342,647 346,672 355,116 0.3 % (4.0) % Total borrowed funds 1,315,090 1,556,246 1,560,207 1,633,828 1,516,163 (15.5) % (13.3) % Accrued interest and other liabilities 694,700 595,606 577,497 626,938 773,563 16.6 % (10.2) % Total Liabilities 14,925,343 14,946,730 14,812,388 14,961,943 14,629,661 (0.1) % 2.0 % SHAREHOLDERS' EQUITY Common stock 1,636,054 1,632,659 1,629,428 1,634,605 1,631,696 0.2 % 0.3 % Retained earnings 1,101,905 1,060,715 1,016,893 968,237 920,943 3.9 % 19.6 % Accumulated other comprehensive income (loss) (410,005) (353,010) (328,059) (358,663) (354,570) 16.1 % 15.6 % Treasury stock, at cost (198,445) (196,945) (196,766) (202,806) (203,937) 0.8 % (2.7) % Total Shareholders' Equity 2,129,509 2,143,419 2,121,496 2,041,373 1,994,132 (0.6) % 6.8 % Total Liabilities and Shareholders' Equity $ 17,054,852 $ 17,090,149 $ 16,933,884 $ 17,003,316 $ 16,623,793 (0.2) % 2.6 % 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 , 2023 2023 2023 2022 2022 2023 2022 ASSETS Cash and due from banks $ 211,670 $ 221,527 $ 218,724 $ 218,216 $ 228,068 $ 217,281 $ 239,219 Interest-bearing deposits with other banks 386,173 329,584 318,026 372,054 317,146 344,844 295,174 Investment securities 3,394,237 3,560,453 3,635,317 3,705,304 4,003,472 3,529,119 4,142,157 Loans held for sale 15,420 11,856 5,531 8,639 12,283 10,972 14,427 Loans and leases Commercial and industrial 3,443,615 3,469,683 3,456,681 3,249,252 3,040,547 3,456,612 2,888,291 Lease financing 371,598 323,819 252,219 203,790 158,667 316,316 136,392 Construction real estate 547,884 518,190 536,294 501,787 469,489 534,165 468,108 Commercial real estate 4,024,798 4,050,946 4,017,021 4,028,944 3,969,935 4,030,950 4,044,214 Residential real estate 1,260,249 1,181,053 1,115,889 1,066,859 998,476 1,186,259 946,417 Home equity 735,251 726,333 728,185 735,039 728,791 729,949 716,333 Installment 164,092 172,147 205,934 208,484 164,063 180,571 143,403 Credit card 60,827 59,478 55,548 56,325 54,946 58,637 54,222 Total loans 10,608,314 10,501,649 10,367,771 10,050,480 9,584,914 10,493,459 9,397,380 Less: Allowance for credit losses (150,297) (145,578) (136,419) (127,541) (119,000) (144,149) (124,145) Net loans 10,458,017 10,356,071 10,231,352 9,922,939 9,465,914 10,349,310 9,273,235 Premises and equipment 194,228 190,583 190,346 189,342 190,738 191,733 191,814 Operating leases 132,984 138,725 107,092 88,365 83,970 126,362 73,126 Goodwill 1,005,844 1,005,791 1,005,713 998,575 999,690 1,005,783 999,960 Other intangibles 87,427 89,878 92,587 95,256 97,781 89,945 100,370 Accrued interest and other assets 1,065,389 1,063,587 1,138,311 1,168,908 986,927 1,088,829 923,549 Total Assets $ 16,951,389 $ 16,968,055 $ 16,942,999 $ 16,767,598 $ 16,385,989 $ 16,954,178 $ 16,253,031 LIABILITIES Deposits Interest-bearing demand $ 2,927,416 $ 2,906,855 $ 2,906,712 $ 3,103,091 $ 3,105,547 $ 2,913,737 $ 3,177,253 Savings 3,919,590 3,749,902 3,818,807 3,943,342 4,036,565 3,829,802 4,085,787 Time 2,446,854 2,393,707 2,131,707 1,360,681 1,052,669 2,325,244 1,112,541 Total interest-bearing deposits 9,293,860 9,050,464 8,857,226 8,407,114 8,194,781 9,068,783 8,375,581 Noninterest-bearing 3,493,305 3,663,419 3,954,915 4,225,192 4,176,242 3,702,189 4,187,145 Total deposits 12,787,165 12,713,883 12,812,141 12,632,306 12,371,023 12,770,972 12,562,726 Federal funds purchased and securities sold under agreements to repurchase 10,788 21,881 26,380 16,167 32,637 19,626 34,028 FHLB short-term borrowings 878,199 1,028,207 925,144 944,320 892,786 943,678 581,470 Other 175,682 132,088 139,195 184,439 131,237 149,122 91,654 Total short-term borrowings 1,064,669 1,182,176 1,090,719 1,144,926 1,056,660 1,112,426 707,152 Long-term debt 338,402 341,523 343,619 344,162 350,058 341,162 364,693 Total borrowed funds 1,403,071 1,523,699 1,434,338 1,489,088 1,406,718 1,453,588 1,071,845 Accrued interest and other liabilities 607,552 592,708 614,310 636,640 519,069 604,831 480,845 Total Liabilities 14,797,788 14,830,290 14,860,789 14,758,034 14,296,810 14,829,391 14,115,416 SHAREHOLDERS' EQUITY Common stock 1,634,102 1,631,230 1,633,396 1,632,941 1,631,078 1,632,912 1,635,103 Retained earnings 1,076,515 1,034,092 989,777 941,987 899,524 1,033,779 869,574 Accumulated other comprehensive loss (358,769) (330,263) (339,450) (361,284) (236,566) (342,898) (156,047) Treasury stock, at cost (198,247) (197,294) (201,513) (204,080) (204,857) (199,006) (211,015) Total Shareholders' Equity 2,153,601 2,137,765 2,082,210 2,009,564 2,089,179 2,124,787 2,137,615 Total Liabilities and Shareholders' Equity $ 16,951,389 $ 16,968,055 $ 16,942,999 $ 16,767,598 $ 16,385,989 $ 16,954,178 $ 16,253,031 FIRST FINANCIAL BANCORP . NET INTEREST MARGIN RATE/VOLUME ANALYSIS (Dollars in thousands) (Unaudited) Quarterly Averages Year-to-Date Averages September 30, 2023 June 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Balance Interest Yield Balance Interest Yield Balance Interest Yield Balance Yield Balance Yield Earning assets Investments: Investment securities $ 3,394,237 $ 34,819 4.07 % $ 3,560,453 $ 35,575 4.01 % $ 4,003,472 $ 31,345 3.11 % $ 3,529,119 4.01 % $ 4,142,157 2.79 % Interest-bearing deposits with other banks 386,173 5,011 5.15 % 329,584 3,933 4.79 % 317,146 1,597 2.00 % 344,844 4.84 % 295,174 1.01 % Gross loans (1) 10,623,734 192,261 7.18 % 10,513,505 184,387 7.03 % 9,597,197 122,170 5.05 % 10,504,431 6.95 % 9,411,807 4.35 % Total earning assets 14,404,144 232,091 6.39 % 14,403,542 223,895 6.23 % 13,917,815 155,112 4.42 % 14,378,394 6.18 % 13,849,138 3.81 % Nonearning assets Allowance for credit losses (150,297) (145,578) (119,000) (144,149) (124,145) Cash and due from banks 211,670 221,527 228,068 217,281 239,219 Accrued interest and other assets 2,485,872 2,488,564 2,359,106 2,502,652 2,288,819 Total assets $ 16,951,389 $ 16,968,055 $ 16,385,989 $ 16,954,178 $ 16,253,031 Interest-bearing liabilities Deposits: Interest-bearing demand $ 2,927,416 $ 12,953 1.76 % $ 2,906,855 $ 8,351 1.15 % $ 3,105,547 $ 2,404 0.31 % $ 2,913,737 1.28 % $ 3,177,253 0.16 % Savings 3,919,590 19,853 2.01 % 3,749,902 14,055 1.50 % 4,036,565 2,199 0.22 % 3,829,802 1.45 % 4,085,787 0.13 % Time 2,446,854 24,263 3.93 % 2,393,707 21,886 3.67 % 1,052,669 1,783 0.67 % 2,325,244 3.64 % 1,112,541 0.50 % Total interest-bearing deposits 9,293,860 57,069 2.44 % 9,050,464 44,292 1.96 % 8,194,781 6,386 0.31 % 9,068,783 1.96 % 8,375,581 0.19 % Borrowed funds Short-term borrowings 1,064,669 14,615 5.45 % 1,182,176 15,536 5.27 % 1,056,660 6,158 2.31 % 1,112,426 5.18 % 707,152 1.52 % Long-term debt 338,402 4,952 5.81 % 341,523 4,835 5.68 % 350,058 4,676 5.30 % 341,162 5.74 % 364,693 5.07 % Total borrowed funds 1,403,071 19,567 5.53 % 1,523,699 20,371 5.36 % 1,406,718 10,834 3.06 % 1,453,588 5.31 % 1,071,845 2.73 % Total interest-bearing liabilities 10,696,931 76,636 2.84 % 10,574,163 64,663 2.45 % 9,601,499 17,220 0.71 % 10,522,371 2.42 % 9,447,426 0.48 % Noninterest-bearing liabilities Noninterest-bearing demand deposits 3,493,305 3,663,419 4,176,242 3,702,189 4,187,145 Other liabilities 607,552 592,708 519,069 604,831 480,845 Shareholders' equity 2,153,601 2,137,765 2,089,179 2,124,787 2,137,615 Total liabilities & shareholders' equity $ 16,951,389 $ 16,968,055 $ 16,385,989 $ 16,954,178 $ 16,253,031 Net interest income $ 155,455 $ 159,232 $ 137,892 $ 474,005 $ 361,247 Net interest spread 3.55 % 3.78 % 3.71 % 3.76 % 3.33 % Net interest margin 4.28 % 4.43 % 3.93 % 4.41 % 3.49 % Tax equivalent adjustment 0.05 % 0.05 % 0.05 % 0.04 % 0.04 % Net interest margin (fully tax equivalent) 4.33 % 4.48 % 3.98 % 4.45 % 3.53 % (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 $ 552 $ (1,308) $ (756) $ 9,724 $ (6,250) $ 3,474 $ 37,663 $ (18,365) $ 19,298 Interest-bearing deposits with other banks 297 781 1,078 2,518 896 3,414 8,467 1,799 10,266 Gross loans (2) 3,811 4,063 7,874 51,513 18,578 70,091 183,082 56,829 239,911 Total earning assets 4,660 3,536 8,196 63,755 13,224 76,979 229,212 40,263 269,475 Interest-bearing liabilities Total interest-bearing deposits $ 10,678 $ 2,099 $ 12,777 $ 43,934 $ 6,749 $ 50,683 $ 110,693 $ 10,152 $ 120,845 Borrowed funds Short-term borrowings 516 (1,437) (921) 8,347 110 8,457 19,358 15,702 35,060 Long-term debt 108 9 117 447 (171) 276 1,822 (1,010) 812 Total borrowed funds 624 (1,428) (804) 8,794 (61) 8,733 21,180 14,692 35,872 Total interest-bearing liabilities 11,302 671 11,973 52,728 6,688 59,416 131,873 24,844 156,717 Net interest income (1) $ (6,642) $ 2,865 $ (3,777) $ 11,027 $ 6,536 $ 17,563 $ 97,339 $ 15,419 $ 112,758 (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 , 2023 2023 2023 2022 2022 2023 2022 ALLOWANCE FOR CREDIT LOSS ACTIVITY Balance at beginning of period $ 148,646 $ 141,591 $ 132,977 $ 124,096 $ 117,885 $ 132,977 $ 131,992 Provision for credit losses 12,907 12,719 8,644 8,689 7,898 34,270 (1,958) Gross charge-offs Commercial and industrial 9,207 2,372 730 334 1,947 12,309 5,565 Lease financing 76 90 13 0 13 179 152 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 6,008 2,648 66 245 3 8,722 3,422 Residential real estate 10 20 0 79 119 30 145 Home equity 54 21 91 72 45 166 88 Installment 1,349 1,515 1,524 717 294 4,388 832 Credit card 319 274 217 212 237 810 695 Total gross charge-offs 17,023 6,940 2,641 1,659 2,658 26,604 10,899 Recoveries Commercial and industrial 335 631 109 293 90 1,075 646 Lease financing 1 1 1 0 13 3 49 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 39 153 2,238 1,327 561 2,430 2,977 Residential real estate 44 113 66 15 35 223 159 Home equity 125 232 80 88 185 437 810 Installment 87 90 54 68 29 231 97 Credit card 40 56 63 60 58 159 223 Total recoveries 671 1,276 2,611 1,851 971 4,558 4,961 Total net charge-offs 16,352 5,664 30 (192) 1,687 22,046 5,938 Ending allowance for credit losses $ 145,201 $ 148,646 $ 141,591 $ 132,977 $ 124,096 $ 145,201 $ 124,096 NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) Commercial and industrial 1.02 % 0.20 % 0.07 % 0.01 % 0.24 % 0.43 % 0.23 % Lease financing 0.08 % 0.11 % 0.02 % 0.00 % 0.00 % 0.07 % 0.10 % Construction real estate 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Commercial real estate 0.59 % 0.25 % (0.22) % (0.11) % (0.06) % 0.21 % 0.01 % Residential real estate (0.01) % (0.03) % (0.02) % 0.02 % 0.03 % (0.02) % 0.00 % Home equity (0.04) % (0.12) % 0.01 % (0.01) % (0.08) % (0.05) % (0.13) % Installment 3.05 % 3.32 % 2.89 % 1.24 % 0.64 % 3.08 % 0.69 % Credit card 1.82 % 1.47 % 1.12 % 1.07 % 1.29 % 1.48 % 1.16 % Total net charge-offs 0.61 % 0.22 % 0.00 % (0.01) % 0.07 % 0.28 % 0.08 % COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS Nonaccrual loans (1) Commercial and industrial $ 17,152 $ 21,508 $ 13,971 $ 8,242 $ 8,719 $ 17,152 $ 8,719 Lease financing 7,731 4,833 175 178 199 7,731 199 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 33,019 11,876 5,362 5,786 13,435 33,019 13,435 Residential real estate 12,328 11,697 11,129 10,691 10,250 12,328 10,250 Home equity 3,937 3,239 3,399 3,123 3,445 3,937 3,445 Installment 774 568 544 603 279 774 279 Nonaccrual loans 74,941 53,721 34,580 28,623 36,327 74,941 36,327 Accruing troubled debt restructurings (TDRs) (2) N/A N/A N/A 10,960 11,022 N/A 11,022 Total nonperforming loans (2) 74,941 53,721 34,580 39,583 47,349 74,941 47,349 Other real estate owned (OREO) 142 281 191 191 22 142 22 Total nonperforming assets (2) 75,083 54,002 34,771 39,774 47,371 75,083 47,371 Accruing loans past due 90 days or more 698 873 159 857 139 698 139 Total underperforming assets (2) $ 75,781 $ 54,875 $ 34,930 $ 40,631 $ 47,510 $ 75,781 $ 47,510 Total classified assets (2) $ 140,552 $ 138,909 $ 158,984 $ 128,137 $ 114,956 $ 140,552 $ 114,956 CREDIT QUALITY RATIOS Allowance for credit losses to Nonaccrual loans 193.75 % 276.70 % 409.46 % 464.58 % 341.61 % 193.75 % 341.61 % Nonperforming loans 193.75 % 276.70 % 409.46 % 335.94 % 262.09 % 193.75 % 262.09 % Total ending loans 1.36 % 1.41 % 1.36 % 1.29 % 1.27 % 1.36 % 1.27 % Nonperforming loans to total loans 0.70 % 0.51 % 0.33 % 0.38 % 0.48 % 0.70 % 0.48 % Nonaccrual loans to total loans 0.70 % 0.51 % 0.33 % 0.28 % 0.37 % 0.70 % 0.37 % Nonperforming assets to Ending loans, plus OREO 0.71 % 0.51 % 0.33 % 0.39 % 0.48 % 0.71 % 0.48 % Total assets 0.44 % 0.32 % 0.21 % 0.23 % 0.28 % 0.44 % 0.28 % Nonperforming assets, excluding accruing TDRs to Ending loans, plus OREO 0.71 % 0.51 % 0.33 % 0.28 % 0.37 % 0.71 % 0.37 % Total assets 0.44 % 0.32 % 0.21 % 0.17 % 0.22 % 0.44 % 0.22 % Classified assets to total assets 0.82 % 0.81 % 0.94 % 0.75 % 0.69 % 0.82 % 0.69 % (1) Nonaccrual loans include nonaccrual TDRs of $10.0 million and $12.8 million , as of December 31, 2022 and September 30, 2022 , respectively. (2) Upon adoption of ASU 2022-02 as of January 1, 2023 , the TDR model was eliminated. Prospectively, disclosures will include modifications of loans to borrowers experiencing financial difficulty (FDM). FDMs are excluded from nonperforming, underperforming and classified assets. 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 , 2023 2023 2023 2022 2022 2023 2022 PER COMMON SHARE Market Price High $ 24.02 $ 22.27 $ 26.24 $ 26.68 $ 23.75 $ 26.24 $ 26.73 Low $ 19.19 $ 18.20 $ 21.30 $ 21.56 $ 19.02 $ 18.20 $ 19.02 Close $ 19.60 $ 20.44 $ 21.77 $ 24.23 $ 21.08 $ 19.60 $ 21.08 Average shares outstanding - basic 94,030,275 93,924,068 93,732,532 93,590,674 93,582,250 93,896,716 93,507,831 Average shares outstanding - diluted 95,126,269 95,169,348 94,960,158 94,831,788 94,793,766 95,085,871 94,504,453 Ending shares outstanding 95,117,180 95,185,483 95,190,406 94,891,099 94,833,964 95,117,180 94,833,964 Total shareholders' equity $ 2,129,509 $ 2,143,419 $ 2,121,496 $ 2,041,373 $ 1,994,132 $ 2,129,509 $ 1,994,132 REGULATORY CAPITAL Preliminary Preliminary Common equity tier 1 capital $ 1,527,793 $ 1,481,913 $ 1,432,332 $ 1,399,420 $ 1,348,413 $ 1,527,793 $ 1,348,413 Common equity tier 1 capital ratio 11.60 % 11.34 % 11.00 % 10.83 % 10.82 % 11.60 % 10.82 % Tier 1 capital $ 1,572,248 $ 1,526,362 $ 1,476,734 $ 1,443,698 $ 1,392,565 $ 1,572,248 $ 1,392,565 Tier 1 ratio 11.94 % 11.68 % 11.34 % 11.17 % 11.17 % 11.94 % 11.17 % Total capital $ 1,778,993 $ 1,756,968 $ 1,707,270 $ 1,691,255 $ 1,640,052 $ 1,778,993 $ 1,640,052 Total capital ratio 13.51 % 13.44 % 13.11 % 13.09 % 13.15 % 13.51 % 13.15 % Total capital in excess of minimum requirement $ 396,083 $ 384,735 $ 339,585 $ 334,316 $ 330,973 $ 396,083 $ 330,973 Total risk-weighted assets $ 13,170,574 $ 13,068,888 $ 13,025,567 $ 12,923,233 $ 12,467,422 $ 13,170,574 $ 12,467,422 Leverage ratio 9.59 % 9.33 % 9.03 % 8.89 % 8.88 % 9.59 % 8.88 % OTHER CAPITAL RATIOS Ending shareholders' equity to ending assets 12.49 % 12.54 % 12.53 % 12.01 % 12.00 % 12.49 % 12.00 % Ending tangible shareholders' equity to ending tangible assets (1) 6.50 % 6.56 % 6.47 % 5.95 % 5.79 % 6.50 % 5.79 % Average shareholders' equity to average assets 12.70 % 12.60 % 12.29 % 11.98 % 12.75 % 12.53 % 13.15 % Average tangible shareholders' equity to average tangible assets (1) 6.69 % 6.57 % 6.21 % 5.84 % 6.49 % 6.49 % 6.85 % 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-third-quarter-2023-financial-results-and-quarterly-dividend-301966141.html SOURCE First Financial Bancorp .

View stock analysis, news, and events for First Financial Bancorp.