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

About this update from First Financial Bancorp.

Earnings per diluted share of $0.55 ; $0.67 on an adjusted(1) basis Return on average assets of 1.17%; 1.42% on an adjusted(1) basis Net interest margin on FTE basis(1) of 4.08% Noninterest income of $45.7 million ; $58.8 million on an adjusted(1) basis Average deposit growth of $166.2 million ; 4.9% on an annualized basis 1.37% ACL ratio to total loans; Net charge-offs 0.25% of total loans Tangible book value increased 10.2% from linked quarter to $14.26 Board of Directors approved quarterly dividend of $0.24 CINCINNATI , Oct. 24, 2024 /PRNewswire/ -- First Financial Bancorp . (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2024 . For the three months ended September 30, 2024 , the Company reported net income of $52.5 million , or $0.55 per diluted common share. These results compare to net income of $60.8 million , or $0.64 per diluted common share, for the second quarter of 2024. For the nine months ended September 30, 2024 , First Financial had earnings per diluted share of $1.74 compared to $2.12 for the same period in 2023. Return on average assets for the third quarter of 2024 was 1.17% while return on average tangible common equity was 16.29%(1). These compare to return on average assets of 1.38% and return on average tangible common equity of 20.57%(1) in the second quarter of 2024. Third quarter 2024 highlights include: Net interest margin of 4.05%, or 4.08% on a fully tax-equivalent basis(1) 2 bp decline from second quarter, better than initial expectations Slight increase in cost of deposits offset by favorable shift in funding mix; Asset yields flat compared to prior quarter Noninterest income of $45.7 million , or $58.8 million as adjusted(1) Adjustments include: $17.5 million loss on securities; includes $9.7 million of impairment losses and $8.0 million loss on sales from restructuring activities $4.4 million deferred tax gain Strong results from foreign exchange, wealth management, and leasing businesses Noninterest expenses of $125.8 million , or $124.7 million as adjusted(1); 1.8% increase from linked quarter Third quarter adjustments(1) include $0.4 million of efficiency related costs and $0.7 million of other costs such as acquisition, severance and branch consolidation costs Increase driven by $1.8 million increase in leasing business expenses and $0.5 million supplemental contribution to the First Financial Foundation Efficiency ratio of 62.5%; 58.2% as adjusted(1) Modest loan growth during the quarter Loan balances increased $31.9 million compared to the linked quarter; 1% annualized growth Growth driven by leasing and mortgage Payoffs increased 27% compared to the linked quarter _________________________________________________________________________________________ (1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. Strong average deposit growth during the quarter Average deposits increased $166.2 million , or 4.9% on an annualized basis Growth in money market accounts, retail CDs and brokered CDs offset seasonal decline in public funds and modest declines in noninterest bearing checking and savings accounts Total Allowance for Credit Losses of $176.0 million ; Total quarterly provision expense of $10.6 million Loans and leases - ACL of $158.8 million ; ratio to total loans of 1.37% increased 1 bp from second quarter Unfunded Commitments - ACL of $17.1 million Provision expense driven by net charge offs and slower prepayment rates; Classified assets 1.14% of total assets Annualized net charge-offs were 25 bps of total loans Capital ratios stable and strong Total capital ratio increased 11 bps to 14.58% Tier 1 common equity increased 26 bps to 12.04% Tangible common equity of 7.98%(1); 9.34%(1) excluding impact from AOCI Tangible book value per share of $14.26 (1); 10.2% increase from linked quarter Additionally, the board of directors approved a quarterly dividend of $0.24 per common share for the next regularly scheduled dividend, payable on December 16, 2024 to shareholders of record as of December 2, 2024 . Archie Brown , President and CEO, commented on third quarter results, "Third quarter financial results reflect our ongoing commitment to industry leading performance. Adjusted(1) earnings per share were $0.67 , which resulted in an adjusted(1) return on assets of 1.42% and an adjusted(1) return on tangible common equity of 19.77%. We are particularly pleased with our 4.08% net interest margin. With only a 2 bp decline from the second quarter, the margin has proven to be more durable than expected due to high asset yields from Agile, investment portfolio restructuring and moderating funding costs. Average deposit balances grew 4.9% on an annualized basis, as declines in our low cost products moderated. Consistent with our expectations, loan growth slowed during the third quarter as softer pipelines in the second quarter led to fewer fundings in the current period. Loan growth was also impacted by higher payoffs in our commercial banking and investment commercial real estate portfolios. Loan pipelines strengthened during the third quarter, and we expect higher growth rates as we close out the year." Mr. Brown continued, "Third quarter noninterest income was $45.7 million , or $58.8 million on an adjusted(1) basis, with strong earnings from foreign exchange, wealth management and the leasing business. There were several large non-recurring items that impacted noninterest income, including $17.5 million of losses on securities, which included a $9.7 million impairment charge on two bonds secured by skilled nursing homes. While third quarter noninterest income was noisy, noninterest expenses were relatively flat compared to the prior quarter. We remain diligent in managing our expenses, and our workforce efficiency initiative has resulted in the elimination of 120 positions to date, with additional savings expected into 2025." Mr. Brown commented on asset quality and capital, "Asset quality was stable for the quarter and our ACL increased to 1.37% of total loans. Additionally, third quarter net charge-offs were 25 bps on an annualized basis and nonperforming assets as a percent of assets increased 1 bp to 36 bps. We are optimistic about asset quality and are confident in our ability to manage the portfolio through the expected interest rate reductions and economic uncertainty in the near-term. With regard to capital, strong earnings and the decline in interest rates led to significant improvement in tangible book value per share and tangible common equity. Tangible book value per share increased 10% from the linked quarter and over 30% from the same quarter last year to $14.26 , while tangible common equity increased 75 basis points from June 30 to 7.98% as of the end of September." Mr. Brown concluded, "We are very proud of our financial results in the first nine months of 2024. Overall, the economy remains healthy, and the general easing of interest rates should extend economic growth in the coming periods. We believe we are in a strong position to finish the year on a high note and head into 2025 with continued momentum." Full detail of the Company's third quarter 2024 performance is provided in the accompanying financial statements and slide presentation. Teleconference / Webcast Information First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, October 25, 2024 at 8:30 a.m. Eastern Time . Members of the public who would like to listen to the conference call should dial (888) 550-5723 ( U.S. toll free) or (646) 960-0471 ( U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 ( U.S. toll free), (609) 800-9099 ( U.S. toll), access code 5048068. The recording will be available until November 8, 2024 . The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com . The webcast will be archived on the Investor Relations section of the Company's website for 12 months. Press Release and Additional Information on Website This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com . Use of Non-GAAP Financial Measures This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. Forward-Looking Statements Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements. As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; Management's ability to effectively execute its business plans; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period; the effect of changes in accounting policies and practices; changes in consumer spending, borrowing and saving and changes in unemployment; changes in customers' performance and creditworthiness; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and our ability to develop and execute effective business plans and strategies. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2023 , as well as our other filings with the SEC , which are available on the SEC website at www.sec.gov . All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement. About First Financial Bancorp . First Financial Bancorp . is a Cincinnati, Ohio based bank holding company. As of September 30, 2024 , the Company had $18.1 billion in assets, $11.6 billion in loans, $13.9 billion in deposits and $2.5 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 $3.8 billion in assets under management as of September 30, 2024 . The Company operated 128 full service banking centers as of September 30, 2024 , located in Ohio , Indiana , Kentucky and Illinois , while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com . FIRST FINANCIAL BANCORP . CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data) (Unaudited) Three Months Ended, Nine months ended, Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , Sep. 30 , 2024 2024 2024 2023 2023 2024 2023 RESULTS OF OPERATIONS Net income $ 52,451 $ 60,805 $ 50,689 $ 56,732 $ 63,061 $ 163,945 $ 199,131 Net earnings per share - basic $ 0.56 $ 0.64 $ 0.54 $ 0.60 $ 0.67 $ 1.74 $ 2.12 Net earnings per share - diluted $ 0.55 $ 0.64 $ 0.53 $ 0.60 $ 0.66 $ 1.72 $ 2.09 Dividends declared per share $ 0.24 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.70 $ 0.69 KEY FINANCIAL RATIOS Return on average assets 1.17 % 1.38 % 1.18 % 1.31 % 1.48 % 1.24 % 1.57 % Return on average shareholders' equity 8.80 % 10.72 % 9.00 % 10.50 % 11.62 % 9.50 % 12.53 % Return on average tangible shareholders' equity (1) 16.29 % 20.57 % 17.35 % 21.36 % 23.60 % 18.02 % 25.87 % Net interest margin 4.05 % 4.06 % 4.05 % 4.21 % 4.28 % 4.05 % 4.41 % Net interest margin (fully tax equivalent) (1)(2) 4.08 % 4.10 % 4.10 % 4.26 % 4.33 % 4.09 % 4.45 % Ending shareholders' equity as a percent of ending assets 13.50 % 12.81 % 12.99 % 12.94 % 12.49 % 13.50 % 12.49 % Ending tangible shareholders' equity as a percent of: Ending tangible assets (1) 7.98 % 7.23 % 7.23 % 7.17 % 6.50 % 7.98 % 6.50 % Risk-weighted assets (1) 9.87 % 8.95 % 8.80 % 8.81 % 7.88 % 9.87 % 7.88 % Average shareholders' equity as a percent of average assets 13.28 % 12.87 % 13.09 % 12.52 % 12.70 % 13.08 % 12.53 % Average tangible shareholders' equity as a percent of average tangible assets (1) 7.64 % 7.15 % 7.25 % 6.57 % 6.69 % 7.35 % 6.49 % Book value per share $ 25.66 $ 24.36 $ 23.95 $ 23.84 $ 22.39 $ 25.66 $ 22.39 Tangible book value per share (1) $ 14.26 $ 12.94 $ 12.50 $ 12.38 $ 10.91 $ 14.26 $ 10.91 Common equity tier 1 ratio (3) 12.04 % 11.78 % 11.67 % 11.73 % 11.60 % 12.04 % 11.60 % Tier 1 ratio (3) 12.37 % 12.11 % 12.00 % 12.06 % 11.94 % 12.37 % 11.94 % Total capital ratio (3) 14.58 % 14.47 % 14.31 % 14.26 % 14.19 % 14.58 % 14.19 % Leverage ratio (3) 9.93 % 9.73 % 9.75 % 9.70 % 9.59 % 9.93 % 9.59 % AVERAGE BALANCE SHEET ITEMS Loans (4) $ 11,534,000 $ 11,440,930 $ 11,066,184 $ 10,751,028 $ 10,623,734 $ 11,347,720 $ 10,504,431 Investment securities 3,274,498 3,131,541 3,137,665 3,184,408 3,394,237 3,181,575 3,529,119 Interest-bearing deposits with other banks 483,880 599,348 553,654 548,153 386,173 545,402 344,844 Total earning assets $ 15,292,378 $ 15,171,819 $ 14,757,503 $ 14,483,589 $ 14,404,144 $ 15,074,697 $ 14,378,394 Total assets $ 17,854,191 $ 17,728,251 $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 17,630,374 $ 16,954,178 Noninterest-bearing deposits $ 3,106,239 $ 3,144,198 $ 3,169,750 $ 3,368,024 $ 3,493,305 $ 3,139,939 $ 3,702,189 Interest-bearing deposits 10,690,265 10,486,068 10,109,416 9,834,819 9,293,860 10,429,538 9,068,783 Total deposits $ 13,796,504 $ 13,630,266 $ 13,279,166 $ 13,202,843 $ 12,787,165 $ 13,569,477 $ 12,770,972 Borrowings $ 1,053,737 $ 1,171,246 $ 1,139,014 $ 1,083,954 $ 1,403,071 $ 1,121,086 $ 1,453,588 Shareholders' equity $ 2,371,125 $ 2,281,040 $ 2,265,562 $ 2,144,482 $ 2,153,601 $ 2,306,147 $ 2,124,787 CREDIT QUALITY RATIOS Allowance to ending loans 1.37 % 1.36 % 1.29 % 1.29 % 1.36 % 1.37 % 1.36 % Allowance to nonaccrual loans 242.72 % 249.21 % 243.55 % 215.10 % 193.75 % 242.72 % 193.75 % Nonaccrual loans to total loans 0.57 % 0.54 % 0.53 % 0.60 % 0.70 % 0.57 % 0.70 % Nonperforming assets to ending loans, plus OREO 0.57 % 0.54 % 0.53 % 0.60 % 0.71 % 0.57 % 0.71 % Nonperforming assets to total assets 0.36 % 0.35 % 0.34 % 0.38 % 0.44 % 0.36 % 0.44 % Classified assets to total assets 1.14 % 1.07 % 0.92 % 0.80 % 0.82 % 1.14 % 0.82 % Net charge-offs to average loans (annualized) 0.25 % 0.15 % 0.38 % 0.46 % 0.61 % 0.26 % 0.28 % (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, 2024 regulatory capital ratios are preliminary. (4) Includes loans held for sale. FIRST FINANCIAL BANCORP . CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) Three months ended, Nine months ended, Sep. 30 , Sep. 30 , 2024 2023 % Change 2024 2023 % Change Interest income Loans and leases, including fees $ 215,433 $ 192,261 12.1 % $ 629,033 $ 546,354 15.1 % Investment securities Taxable 32,367 31,297 3.4 % 90,958 95,226 (4.5) % Tax-exempt 2,616 3,522 (25.7) % 8,412 10,499 (19.9) % Total investment securities interest 34,983 34,819 0.5 % 99,370 105,725 (6.0) % Other earning assets 6,703 5,011 33.8 % 22,121 12,488 77.1 % Total interest income 257,119 232,091 10.8 % 750,524 664,567 12.9 % Interest expense Deposits 86,554 57,069 51.7 % 245,651 132,817 85.0 % Short-term borrowings 9,932 14,615 (32.0) % 32,270 43,101 (25.1) % Long-term borrowings 5,073 4,952 2.4 % 14,992 14,644 2.4 % Total interest expense 101,559 76,636 32.5 % 292,913 190,562 53.7 % Net interest income 155,560 155,455 0.1 % 457,611 474,005 (3.5) % Provision for credit losses-loans and leases 9,930 12,907 (23.1) % 39,506 34,270 15.3 % Provision for credit losses-unfunded commitments 694 (1,234) (156.2) % (1,279) (1,393) (8.2) % Net interest income after provision for credit losses 144,936 143,782 0.8 % 419,384 441,128 (4.9) % Noninterest income Service charges on deposit accounts 7,547 6,957 8.5 % 21,647 20,443 5.9 % Wealth management fees 6,910 6,943 (0.5) % 20,758 19,990 3.8 % Bankcard income 3,698 3,406 8.6 % 10,740 10,690 0.5 % Client derivative fees 1,160 1,612 (28.0) % 3,173 4,444 (28.6) % Foreign exchange income 12,048 13,384 (10.0) % 39,270 45,321 (13.4) % Leasing business income 16,811 14,537 15.6 % 48,228 38,466 25.4 % Net gains from sales of loans 5,021 4,086 22.9 % 13,284 10,260 29.5 % Net gain (loss) on investment securities (17,468) (58) N/M (22,719) (403) N/M Other 9,974 5,761 73.1 % 19,333 16,218 19.2 % Total noninterest income 45,701 56,628 (19.3) % 153,714 165,429 (7.1) % Noninterest expenses Salaries and employee benefits 74,813 75,641 (1.1) % 224,075 222,094 0.9 % Net occupancy 5,919 5,809 1.9 % 17,635 17,100 3.1 % Furniture and equipment 3,617 3,341 8.3 % 10,951 10,020 9.3 % Data processing 8,857 8,473 4.5 % 26,039 27,364 (4.8) % Marketing 2,255 2,598 (13.2) % 6,822 7,560 (9.8) % Communication 851 744 14.4 % 2,462 2,022 21.8 % Professional services 2,303 2,524 (8.8) % 7,456 6,778 10.0 % State intangible tax 876 981 (10.7) % 2,628 2,930 (10.3) % FDIC assessments 3,036 2,665 13.9 % 8,473 8,297 2.1 % Intangible amortization 2,395 2,600 (7.9) % 7,092 7,801 (9.1) % Leasing business expense 11,899 8,877 34.0 % 31,781 23,545 35.0 % Other 8,938 7,791 14.7 % 26,274 23,841 10.2 % Total noninterest expenses 125,759 122,044 3.0 % 371,688 359,352 3.4 % Income before income taxes 64,878 78,366 (17.2) % 201,410 247,205 (18.5) % Income tax expense (benefit) 12,427 15,305 (18.8) % 37,465 48,074 (22.1) % Net income $ 52,451 $ 63,061 (16.8) % $ 163,945 $ 199,131 (17.7) % ADDITIONAL DATA Net earnings per share - basic $ 0.56 $ 0.67 $ 1.74 $ 2.12 Net earnings per share - diluted $ 0.55 $ 0.66 $ 1.72 $ 2.09 Dividends declared per share $ 0.24 $ 0.23 $ 0.70 $ 0.69 Return on average assets 1.17 % 1.48 % 1.24 % 1.57 % Return on average shareholders' equity 8.80 % 11.62 % 9.50 % 12.53 % Interest income $ 257,119 $ 232,091 10.8 % $ 750,524 $ 664,567 12.9 % Tax equivalent adjustment 1,362 1,659 (17.9) % 4,315 4,684 (7.9) % Interest income - tax equivalent 258,481 233,750 10.6 % 754,839 669,251 12.8 % Interest expense 101,559 76,636 32.5 % 292,913 190,562 53.7 % Net interest income - tax equivalent $ 156,922 $ 157,114 (0.1) % $ 461,926 $ 478,689 (3.5) % Net interest margin 4.05 % 4.28 % 4.05 % 4.41 % Net interest margin (fully tax equivalent) (1) 4.08 % 4.33 % 4.09 % 4.45 % Full-time equivalent employees 2,084 2,121 (1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. FIRST FINANCIAL BANCORP . CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) 2024 Third Second First Year to % Change Quarter Quarter Quarter Date Linked Qtr. Interest income Loans and leases, including fees $ 215,433 $ 211,760 $ 201,840 $ 629,033 1.7 % Investment securities Taxable 32,367 30,295 28,296 90,958 6.8 % Tax-exempt 2,616 2,704 3,092 8,412 (3.3) % Total investment securities interest 34,983 32,999 31,388 99,370 6.0 % Other earning assets 6,703 7,960 7,458 22,121 (15.8) % Total interest income 257,119 252,719 240,686 750,524 1.7 % Interest expense Deposits 86,554 83,022 76,075 245,651 4.3 % Short-term borrowings 9,932 11,395 10,943 32,270 (12.8) % Long-term borrowings 5,073 4,991 4,928 14,992 1.6 % Total interest expense 101,559 99,408 91,946 292,913 2.2 % Net interest income 155,560 153,311 148,740 457,611 1.5 % Provision for credit losses-loans and leases 9,930 16,157 13,419 39,506 (38.5) % Provision for credit losses-unfunded commitments 694 286 (2,259) (1,279) 142.7 % Net interest income after provision for credit losses 144,936 136,868 137,580 419,384 5.9 % Noninterest income Service charges on deposit accounts 7,547 7,188 6,912 21,647 5.0 % Wealth management fees 6,910 7,172 6,676 20,758 (3.7) % Bankcard income 3,698 3,900 3,142 10,740 (5.2) % Client derivative fees 1,160 763 1,250 3,173 52.0 % Foreign exchange income 12,048 16,787 10,435 39,270 (28.2) % Leasing business income 16,811 16,828 14,589 48,228 (0.1) % Net gains from sales of loans 5,021 4,479 3,784 13,284 12.1 % Net gain (loss) on investment securities (17,468) (64) (5,187) (22,719) N/M Other 9,974 4,448 4,911 19,333 124.2 % Total noninterest income 45,701 61,501 46,512 153,714 (25.7) % Noninterest expenses Salaries and employee benefits 74,813 75,225 74,037 224,075 (0.5) % Net occupancy 5,919 5,793 5,923 17,635 2.2 % Furniture and equipment 3,617 3,646 3,688 10,951 (0.8) % Data processing 8,857 8,877 8,305 26,039 (0.2) % Marketing 2,255 2,605 1,962 6,822 (13.4) % Communication 851 816 795 2,462 4.3 % Professional services 2,303 2,885 2,268 7,456 (20.2) % State intangible tax 876 875 877 2,628 0.1 % FDIC assessments 3,036 2,657 2,780 8,473 14.3 % Intangible amortization 2,395 2,396 2,301 7,092 0.0 % Leasing business expense 11,899 10,128 9,754 31,781 17.5 % Other 8,938 7,671 9,665 26,274 16.5 % Total noninterest expenses 125,759 123,574 122,355 371,688 1.8 % Income before income taxes 64,878 74,795 61,737 201,410 (13.3) % Income tax expense (benefit) 12,427 13,990 11,048 37,465 (11.2) % Net income $ 52,451 $ 60,805 $ 50,689 $ 163,945 (13.7) % ADDITIONAL DATA Net earnings per share - basic $ 0.56 $ 0.64 $ 0.54 $ 1.74 Net earnings per share - diluted $ 0.55 $ 0.64 $ 0.53 $ 1.72 Dividends declared per share $ 0.24 $ 0.23 $ 0.23 $ 0.70 Return on average assets 1.17 % 1.38 % 1.18 % 1.24 % Return on average shareholders' equity 8.80 % 10.72 % 9.00 % 9.50 % Interest income $ 257,119 $ 252,719 $ 240,686 $ 750,524 1.7 % Tax equivalent adjustment 1,362 1,418 1,535 4,315 (3.9) % Interest income - tax equivalent 258,481 254,137 242,221 754,839 1.7 % Interest expense 101,559 99,408 91,946 292,913 2.2 % Net interest income - tax equivalent $ 156,922 $ 154,729 $ 150,275 $ 461,926 1.4 % Net interest margin 4.05 % 4.06 % 4.05 % 4.05 % Net interest margin (fully tax equivalent) (1) 4.08 % 4.10 % 4.10 % 4.09 % Full-time equivalent employees 2,084 2,144 2,116 (1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. FIRST FINANCIAL BANCORP . CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) 2023 Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Interest income Loans and leases, including fees $ 197,416 $ 192,261 $ 184,387 $ 169,706 $ 743,770 Investment securities Taxable 30,294 31,297 32,062 31,867 125,520 Tax-exempt 3,402 3,522 3,513 3,464 13,901 Total investment securities interest 33,696 34,819 35,575 35,331 139,421 Other earning assets 7,325 5,011 3,933 3,544 19,813 Total interest income 238,437 232,091 223,895 208,581 903,004 Interest expense Deposits 69,193 57,069 44,292 31,456 202,010 Short-term borrowings 10,277 14,615 15,536 12,950 53,378 Long-term borrowings 5,202 4,952 4,835 4,857 19,846 Total interest expense 84,672 76,636 64,663 49,263 275,234 Net interest income 153,765 155,455 159,232 159,318 627,770 Provision for credit losses-loans and leases 8,804 12,907 12,719 8,644 43,074 Provision for credit losses-unfunded commitments 1,426 (1,234) (1,994) 1,835 33 Net interest income after provision for credit losses 143,535 143,782 148,507 148,839 584,663 Noninterest income Service charges on deposit accounts 6,846 6,957 6,972 6,514 27,289 Wealth management fees 6,091 6,943 6,713 6,334 26,081 Bankcard income 3,349 3,406 3,692 3,592 14,039 Client derivative fees 711 1,612 1,827 1,005 5,155 Foreign exchange income 8,730 13,384 15,039 16,898 54,051 Leasing business income 12,856 14,537 10,265 13,664 51,322 Net gains from sales of loans 2,957 4,086 3,839 2,335 13,217 Net gain (loss) on investment securities (649) (58) (466) 121 (1,052) Other 6,102 5,761 5,377 5,080 22,320 Total noninterest income 46,993 56,628 53,258 55,543 212,422 Noninterest expenses Salaries and employee benefits 70,637 75,641 74,199 72,254 292,731 Net occupancy 5,890 5,809 5,606 5,685 22,990 Furniture and equipment 3,523 3,341 3,362 3,317 13,543 Data processing 8,488 8,473 9,871 9,020 35,852 Marketing 2,087 2,598 2,802 2,160 9,647 Communication 707 744 644 634 2,729 Professional services 3,148 2,524 2,308 1,946 9,926 State intangible tax 984 981 964 985 3,914 FDIC assessments 3,651 2,665 2,806 2,826 11,948 Intangible amortization 2,601 2,600 2,601 2,600 10,402 Leasing business expense 8,955 8,877 6,730 7,938 32,500 Other 8,466 7,791 8,722 7,328 32,307 Total noninterest expenses 119,137 122,044 120,615 116,693 478,489 Income before income taxes 71,391 78,366 81,150 87,689 318,596 Income tax expense (benefit) 14,659 15,305 15,483 17,286 62,733 Net income $ 56,732 $ 63,061 $ 65,667 $ 70,403 $ 255,863 ADDITIONAL DATA Net earnings per share - basic $ 0.60 $ 0.67 $ 0.70 $ 0.75 $ 2.72 Net earnings per share - diluted $ 0.60 $ 0.66 $ 0.69 $ 0.74 $ 2.69 Dividends declared per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 Return on average assets 1.31 % 1.48 % 1.55 % 1.69 % 1.51 % Return on average shareholders' equity 10.50 % 11.62 % 12.32 % 13.71 % 12.01 % Interest income $ 238,437 $ 232,091 $ 223,895 $ 208,581 $ 903,004 Tax equivalent adjustment 1,672 1,659 1,601 1,424 6,356 Interest income - tax equivalent 240,109 233,750 225,496 210,005 909,360 Interest expense 84,672 76,636 64,663 49,263 275,234 Net interest income - tax equivalent $ 155,437 $ 157,114 $ 160,833 $ 160,742 $ 634,126 Net interest margin 4.21 % 4.28 % 4.43 % 4.51 % 4.36 % Net interest margin (fully tax equivalent) (1) 4.26 % 4.33 % 4.48 % 4.55 % 4.40 % Full-time equivalent employees 2,129 2,121 2,193 2,066 (1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. FIRST FINANCIAL BANCORP . CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands) (Unaudited) Sep. 30 , June 30 , Mar. 31 , Dec. 31 , Sep. 30 , % Change % Change 2024 2024 2024 2023 2023 Linked Qtr. Comp Qtr. ASSETS Cash and due from banks $ 190,618 $ 193,794 $ 199,407 $ 213,059 $ 220,335 (1.6) % (13.5) % Interest-bearing deposits with other banks 660,576 738,555 751,290 792,960 452,867 (10.6) % 45.9 % Investment securities available-for-sale 3,157,265 3,036,758 2,850,667 3,021,126 3,044,361 4.0 % 3.7 % Investment securities held-to-maturity 77,985 78,921 79,542 80,321 81,236 (1.2) % (4.0) % Other investments 120,318 132,412 125,548 129,945 133,725 (9.1) % (10.0) % Loans held for sale 12,685 16,911 11,534 9,213 12,391 (25.0) % 2.4 % Loans and leases Commercial and industrial 3,678,546 3,782,487 3,591,428 3,501,221 3,420,873 (2.7) % 7.5 % Lease financing 587,415 534,557 492,862 474,817 399,973 9.9 % 46.9 % Construction real estate 802,264 741,406 641,596 564,832 578,824 8.2 % 38.6 % Commercial real estate 4,034,820 4,076,596 4,145,969 4,080,939 3,992,654 (1.0) % 1.1 % Residential real estate 1,422,186 1,377,290 1,344,677 1,333,674 1,293,470 3.3 % 10.0 % Home equity 825,431 800,860 773,811 758,676 743,991 3.1 % 10.9 % Installment 141,270 148,530 153,838 159,078 160,648 (4.9) % (12.1) % Credit card 61,140 59,477 60,939 59,939 56,386 2.8 % 8.4 % Total loans 11,553,072 11,521,203 11,205,120 10,933,176 10,646,819 0.3 % 8.5 % Less: Allowance for credit losses (158,831) (156,185) (144,274) (141,433) (145,201) 1.7 % 9.4 % Net loans 11,394,241 11,365,018 11,060,846 10,791,743 10,501,618 0.3 % 8.5 % Premises and equipment 196,692 197,873 198,428 194,740 192,572 (0.6) % 2.1 % Operating leases 201,080 167,472 161,473 153,214 136,883 20.1 % 46.9 % Goodwill 1,007,656 1,007,656 1,007,656 1,005,868 1,005,868 0.0 % 0.2 % Other intangibles 81,547 83,528 85,603 83,949 86,378 (2.4) % (5.6) % Accrued interest and other assets 1,045,669 1,147,282 1,067,244 1,056,762 1,186,618 (8.9) % (11.9) % Total Assets $ 18,146,332 $ 18,166,180 $ 17,599,238 $ 17,532,900 $ 17,054,852 (0.1) % 6.4 % LIABILITIES Deposits Interest-bearing demand $ 2,884,971 $ 2,922,540 $ 2,916,518 $ 2,993,219 $ 2,880,617 (1.3) % 0.2 % Savings 4,710,223 4,628,320 4,467,894 4,331,228 4,023,455 1.8 % 17.1 % Time 3,244,861 3,049,635 2,896,860 2,718,390 2,572,909 6.4 % 26.1 % Total interest-bearing deposits 10,840,055 10,600,495 10,281,272 10,042,837 9,476,981 2.3 % 14.4 % Noninterest-bearing 3,107,699 3,061,427 3,175,876 3,317,960 3,438,572 1.5 % (9.6) % Total deposits 13,947,754 13,661,922 13,457,148 13,360,797 12,915,553 2.1 % 8.0 % FHLB short-term borrowings 765,000 1,040,000 700,000 800,000 755,000 (26.4) % 1.3 % Other 46,653 139,172 162,145 137,814 219,188 (66.5) % (78.7) % Total short-term borrowings 811,653 1,179,172 862,145 937,814 974,188 (31.2) % (16.7) % Long-term debt 344,086 338,556 343,236 344,115 340,902 1.6 % 0.9 % Total borrowed funds 1,155,739 1,517,728 1,205,381 1,281,929 1,315,090 (23.9) % (12.1) % Accrued interest and other liabilities 592,401 660,091 649,706 622,200 694,700 (10.3) % (14.7) % Total Liabilities 15,695,894 15,839,741 15,312,235 15,264,926 14,925,343 (0.9) % 5.2 % SHAREHOLDERS' EQUITY Common stock 1,639,045 1,635,705 1,632,971 1,638,972 1,636,054 0.2 % 0.2 % Retained earnings 1,234,375 1,204,844 1,166,065 1,136,718 1,101,905 2.5 % 12.0 % Accumulated other comprehensive income (loss) (232,262) (323,409) (321,109) (309,819) (410,005) (28.2) % (43.4) % Treasury stock, at cost (190,720) (190,701) (190,924) (197,897) (198,445) 0.0 % (3.9) % Total Shareholders' Equity 2,450,438 2,326,439 2,287,003 2,267,974 2,129,509 5.3 % 15.1 % Total Liabilities and Shareholders' Equity $ 18,146,332 $ 18,166,180 $ 17,599,238 $ 17,532,900 $ 17,054,852 (0.1) % 6.4 % 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 , 2024 2024 2024 2023 2023 2024 2023 ASSETS Cash and due from banks $ 179,321 $ 174,435 $ 204,119 $ 214,678 $ 211,670 $ 185,934 $ 217,281 Interest-bearing deposits with other banks 483,880 599,348 553,654 548,153 386,173 545,402 344,844 Investment securities 3,274,498 3,131,541 3,137,665 3,184,408 3,394,237 3,181,575 3,529,119 Loans held for sale 16,399 14,075 12,069 12,547 15,420 14,189 10,972 Loans and leases Commercial and industrial 3,723,761 3,716,083 3,543,475 3,422,381 3,443,615 3,661,335 3,456,612 Lease financing 550,634 509,758 480,540 419,179 371,598 513,779 316,316 Construction real estate 763,779 683,780 603,974 540,314 547,884 684,136 534,165 Commercial real estate 4,059,939 4,146,764 4,101,238 4,060,733 4,024,798 4,102,491 4,030,950 Residential real estate 1,399,932 1,361,133 1,336,749 1,320,670 1,260,249 1,366,062 1,186,259 Home equity 811,265 790,384 765,410 750,925 735,251 789,101 729,949 Installment 143,102 151,753 157,663 160,242 164,092 150,811 180,571 Credit card 65,189 67,200 65,066 64,037 60,827 65,816 58,637 Total loans 11,517,601 11,426,855 11,054,115 10,738,481 10,608,314 11,333,531 10,493,459 Less: Allowance for credit losses (159,252) (147,666) (143,950) (149,398) (150,297) (150,322) (144,149) Net loans 11,358,349 11,279,189 10,910,165 10,589,083 10,458,017 11,183,209 10,349,310 Premises and equipment 197,881 199,096 198,482 194,435 194,228 198,484 191,733 Operating leases 180,118 156,457 154,655 139,331 132,984 163,803 126,362 Goodwill 1,007,654 1,007,657 1,006,477 1,005,870 1,005,844 1,007,264 1,005,783 Other intangibles 82,619 84,577 84,109 85,101 87,427 83,764 89,945 Accrued interest and other assets 1,073,472 1,081,876 1,044,826 1,151,349 1,065,389 1,066,750 1,088,829 Total Assets $ 17,854,191 $ 17,728,251 $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 17,630,374 $ 16,954,178 LIABILITIES Deposits Interest-bearing demand $ 2,914,934 $ 2,888,252 $ 2,895,768 $ 2,988,086 $ 2,927,416 $ 2,899,707 $ 2,913,737 Savings 4,694,923 4,617,658 4,399,768 4,235,658 3,919,590 4,571,236 3,829,802 Time 3,080,408 2,980,158 2,813,880 2,611,075 2,446,854 2,958,595 2,325,244 Total interest-bearing deposits 10,690,265 10,486,068 10,109,416 9,834,819 9,293,860 10,429,538 9,068,783 Noninterest-bearing 3,106,239 3,144,198 3,169,750 3,368,024 3,493,305 3,139,939 3,702,189 Total deposits 13,796,504 13,630,266 13,279,166 13,202,843 12,787,165 13,569,477 12,770,972 Federal funds purchased and securities sold under agreements to repurchase 10,807 750 4,204 3,586 10,788 5,274 19,626 FHLB short-term borrowings 626,490 669,111 646,187 554,826 878,199 647,187 943,678 Other 76,859 161,913 146,127 185,221 175,682 128,112 149,122 Total short-term borrowings 714,156 831,774 796,518 743,633 1,064,669 780,573 1,112,426 Long-term debt 339,581 339,472 342,496 340,321 338,402 340,513 341,162 Total borrowed funds 1,053,737 1,171,246 1,139,014 1,083,954 1,403,071 1,121,086 1,453,588 Accrued interest and other liabilities 632,825 645,699 622,479 693,676 607,552 633,664 604,831 Total Liabilities 15,483,066 15,447,211 15,040,659 14,980,473 14,797,788 15,324,227 14,829,391 SHAREHOLDERS' EQUITY Common stock 1,637,045 1,634,183 1,637,835 1,637,197 1,634,102 1,636,357 1,632,912 Retained earnings 1,210,924 1,179,827 1,144,447 1,111,786 1,076,515 1,178,518 1,033,779 Accumulated other comprehensive loss (285,978) (341,941) (319,601) (406,265) (358,769) (315,731) (342,898) Treasury stock, at cost (190,866) (191,029) (197,119) (198,236) (198,247) (192,997) (199,006) Total Shareholders' Equity 2,371,125 2,281,040 2,265,562 2,144,482 2,153,601 2,306,147 2,124,787 Total Liabilities and Shareholders' Equity $ 17,854,191 $ 17,728,251 $ 17,306,221 $ 17,124,955 $ 16,951,389 $ 17,630,374 $ 16,954,178 FIRST FINANCIAL BANCORP . NET INTEREST MARGIN RATE/VOLUME ANALYSIS (Dollars in thousands) (Unaudited) Quarterly Averages Year-to-Date Averages September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Balance Interest Yield Balance Interest Yield Balance Interest Yield Balance Yield Balance Yield Earning assets Investments: Investment securities $ 3,274,498 $ 34,983 4.24 % $ 3,131,541 $ 32,999 4.23 % $ 3,394,237 $ 34,819 4.07 % $ 3,181,575 4.18 % $ 3,529,119 4.01 % Interest-bearing deposits with other banks 483,880 6,703 5.50 % 599,348 7,960 5.33 % 386,173 5,011 5.15 % 545,402 5.42 % 344,844 4.84 % Gross loans (1) 11,534,000 215,433 7.41 % 11,440,930 211,760 7.42 % 10,623,734 192,261 7.18 % 11,347,720 7.41 % 10,504,431 6.95 % Total earning assets 15,292,378 257,119 6.67 % 15,171,819 252,719 6.68 % 14,404,144 232,091 6.39 % 15,074,697 6.66 % 14,378,394 6.18 % Nonearning assets Allowance for credit losses (159,252) (147,666) (150,297) (150,322) (144,149) Cash and due from banks 179,321 174,435 211,670 185,934 217,281 Accrued interest and other assets 2,541,744 2,529,663 2,485,872 2,520,065 2,502,652 Total assets $ 17,854,191 $ 17,728,251 $ 16,951,389 $ 17,630,374 $ 16,954,178 Interest-bearing liabilities Deposits: Interest-bearing demand $ 2,914,934 $ 15,919 2.17 % $ 2,888,252 $ 14,923 2.07 % $ 2,927,416 $ 12,953 1.76 % $ 2,899,707 2.11 % $ 2,913,737 1.28 % Savings 4,694,923 34,220 2.89 % 4,617,658 33,142 2.88 % 3,919,590 19,853 2.01 % 4,571,236 2.83 % 3,829,802 1.45 % Time 3,080,408 36,415 4.69 % 2,980,158 34,957 4.70 % 2,446,854 24,263 3.93 % 2,958,595 4.66 % 2,325,244 3.64 % Total interest-bearing deposits 10,690,265 86,554 3.21 % 10,486,068 83,022 3.18 % 9,293,860 57,069 2.44 % 10,429,538 3.15 % 9,068,783 1.96 % Borrowed funds Short-term borrowings 714,156 9,932 5.52 % 831,774 11,395 5.49 % 1,064,669 14,615 5.45 % 780,573 5.53 % 1,112,426 5.18 % Long-term debt 339,581 5,073 5.93 % 339,472 4,991 5.90 % 338,402 4,952 5.81 % 340,513 5.89 % 341,162 5.74 % Total borrowed funds 1,053,737 15,005 5.65 % 1,171,246 16,386 5.61 % 1,403,071 19,567 5.53 % 1,121,086 5.64 % 1,453,588 5.31 % Total interest-bearing liabilities 11,744,002 101,559 3.43 % 11,657,314 99,408 3.42 % 10,696,931 76,636 2.84 % 11,550,624 3.39 % 10,522,371 2.42 % Noninterest-bearing liabilities Noninterest-bearing demand deposits 3,106,239 3,144,198 3,493,305 3,139,939 3,702,189 Other liabilities 632,825 645,699 607,552 633,664 604,831 Shareholders' equity 2,371,125 2,281,040 2,153,601 2,306,147 2,124,787 Total liabilities & shareholders' equity $ 17,854,191 $ 17,728,251 $ 16,951,389 $ 17,630,374 $ 16,954,178 Net interest income $ 155,560 $ 153,311 $ 155,455 $ 457,611 $ 474,005 Net interest spread 3.24 % 3.26 % 3.55 % 3.27 % 3.76 % Net interest margin 4.05 % 4.06 % 4.28 % 4.05 % 4.41 % Tax equivalent adjustment 0.03 % 0.04 % 0.05 % 0.04 % 0.04 % Net interest margin (fully tax equivalent) 4.08 % 4.10 % 4.33 % 4.09 % 4.45 % (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 $ 93 $ 1,891 $ 1,984 $ 1,443 $ (1,279) $ 164 $ 4,500 $ (10,855) $ (6,355) Interest-bearing deposits with other banks 252 (1,509) (1,257) 339 1,353 1,692 1,499 8,134 9,633 Gross loans (2) (388) 4,061 3,673 6,170 17,002 23,172 35,933 46,746 82,679 Total earning assets (43) 4,443 4,400 7,952 17,076 25,028 41,932 44,025 85,957 Interest-bearing liabilities Total interest-bearing deposits $ 956 $ 2,576 $ 3,532 $ 18,179 $ 11,306 $ 29,485 $ 80,784 $ 32,050 $ 112,834 Borrowed funds Short-term borrowings 47 (1,510) (1,463) 192 (4,875) (4,683) 2,888 (13,719) (10,831) Long-term debt 25 57 82 103 18 121 377 (29) 348 Total borrowed funds 72 (1,453) (1,381) 295 (4,857) (4,562) 3,265 (13,748) (10,483) Total interest-bearing liabilities 1,028 1,123 2,151 18,474 6,449 24,923 84,049 18,302 102,351 Net interest income (1) $ (1,071) $ 3,320 $ 2,249 $ (10,522) $ 10,627 $ 105 $ (42,117) $ 25,723 $ (16,394) (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 , 2024 2024 2024 2023 2023 2024 2023 ALLOWANCE FOR CREDIT LOSS ACTIVITY Balance at beginning of period $ 156,185 $ 144,274 $ 141,433 $ 145,201 $ 148,646 $ 141,433 $ 132,977 Provision for credit losses 9,930 16,157 13,419 8,804 12,907 39,506 34,270 Gross charge-offs Commercial and industrial 5,471 2,149 2,695 6,866 9,207 10,315 12,309 Lease financing 368 190 3 4,244 76 561 179 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 261 2 5,319 1 6,008 5,582 8,722 Residential real estate 60 6 65 9 10 131 30 Home equity 90 122 25 174 54 237 166 Installment 1,510 2,034 2,236 2,054 1,349 5,780 4,388 Credit card 768 532 794 363 319 2,094 810 Total gross charge-offs 8,528 5,035 11,137 13,711 17,023 24,700 26,604 Recoveries Commercial and industrial 434 236 162 459 335 832 1,075 Lease financing 11 1 59 52 1 71 3 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 25 137 38 93 39 200 2,430 Residential real estate 22 37 24 24 44 83 223 Home equity 240 118 80 178 125 438 437 Installment 421 219 145 210 87 785 231 Credit card 91 41 51 123 40 183 159 Total recoveries 1,244 789 559 1,139 671 2,592 4,558 Total net charge-offs 7,284 4,246 10,578 12,572 16,352 22,108 22,046 Ending allowance for credit losses $ 158,831 $ 156,185 $ 144,274 $ 141,433 $ 145,201 $ 158,831 $ 145,201 NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) Commercial and industrial 0.54 % 0.21 % 0.29 % 0.74 % 1.02 % 0.35 % 0.43 % Lease financing 0.26 % 0.15 % (0.05) % 3.97 % 0.08 % 0.13 % 0.07 % Construction real estate 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Commercial real estate 0.02 % (0.01) % 0.52 % (0.01) % 0.59 % 0.18 % 0.21 % Residential real estate 0.01 % (0.01) % 0.01 % 0.00 % (0.01) % 0.00 % (0.02) % Home equity (0.07) % 0.00 % (0.03) % 0.00 % (0.04) % (0.03) % (0.05) % Installment 3.03 % 4.81 % 5.33 % 4.57 % 3.05 % 4.42 % 3.08 % Credit card 4.13 % 2.94 % 4.59 % 1.49 % 1.82 % 3.88 % 1.48 % Total net charge-offs 0.25 % 0.15 % 0.38 % 0.46 % 0.61 % 0.26 % 0.28 % COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS Nonaccrual loans Commercial and industrial $ 10,703 $ 17,665 $ 14,532 $ 15,746 $ 17,152 $ 10,703 $ 17,152 Lease financing 11,632 5,374 3,794 3,610 7,731 11,632 7,731 Construction real estate 0 0 0 0 0 0 0 Commercial real estate 23,608 22,942 23,055 27,984 33,019 23,608 33,019 Residential real estate 14,596 12,715 12,836 14,067 12,328 14,596 12,328 Home equity 4,074 3,295 4,036 3,476 3,937 4,074 3,937 Installment 826 682 984 870 774 826 774 Total nonaccrual loans 65,439 62,673 59,237 65,753 74,941 65,439 74,941 Other real estate owned (OREO) 30 30 161 106 142 30 142 Total nonperforming assets 65,469 62,703 59,398 65,859 75,083 65,469 75,083 Accruing loans past due 90 days or more 463 1,573 820 2,028 698 463 698 Total underperforming assets $ 65,932 $ 64,276 $ 60,218 $ 67,887 $ 75,781 $ 65,932 $ 75,781 Total classified assets $ 206,194 $ 195,277 $ 162,348 $ 140,995 $ 140,552 $ 206,194 $ 140,552 CREDIT QUALITY RATIOS Allowance for credit losses to Nonaccrual loans 242.72 % 249.21 % 243.55 % 215.10 % 193.75 % 242.72 % 193.75 % Total ending loans 1.37 % 1.36 % 1.29 % 1.29 % 1.36 % 1.37 % 1.36 % Nonaccrual loans to total loans 0.57 % 0.54 % 0.53 % 0.60 % 0.70 % 0.57 % 0.70 % Nonperforming assets to Ending loans, plus OREO 0.57 % 0.54 % 0.53 % 0.60 % 0.71 % 0.57 % 0.71 % Total assets 0.36 % 0.35 % 0.34 % 0.38 % 0.44 % 0.36 % 0.44 % Classified assets to total assets 1.14 % 1.07 % 0.92 % 0.80 % 0.82 % 1.14 % 0.82 % FIRST FINANCIAL BANCORP . CAPITAL ADEQUACY (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 , Sep. 30 , 2024 2024 2024 2023 2023 2024 2023 PER COMMON SHARE Market Price High $ 28.09 $ 23.78 $ 23.68 $ 24.28 $ 24.02 $ 28.09 $ 26.24 Low $ 21.70 $ 20.79 $ 21.04 $ 17.37 $ 19.19 $ 20.79 $ 18.20 Close $ 25.23 $ 22.22 $ 22.42 $ 23.75 $ 19.60 $ 25.23 $ 19.60 Average shares outstanding - basic 94,473,666 94,438,235 94,218,067 94,063,570 94,030,275 94,377,010 93,896,716 Average shares outstanding - diluted 95,479,510 95,470,093 95,183,998 95,126,316 95,126,269 95,378,238 95,085,871 Ending shares outstanding 95,486,317 95,486,010 95,473,595 95,141,244 95,117,180 95,486,317 95,117,180 Total shareholders' equity $ 2,450,438 $ 2,326,439 $ 2,287,003 $ 2,267,974 $ 2,129,509 $ 2,450,438 $ 2,129,509 REGULATORY CAPITAL Preliminary Preliminary Common equity tier 1 capital $ 1,661,759 $ 1,626,345 $ 1,582,113 $ 1,568,815 $ 1,527,793 $ 1,661,759 $ 1,527,793 Common equity tier 1 capital ratio 12.04 % 11.78 % 11.67 % 11.73 % 11.60 % 12.04 % 11.60 % Tier 1 capital $ 1,706,796 $ 1,671,258 $ 1,626,899 $ 1,613,480 $ 1,572,248 $ 1,706,796 $ 1,572,248 Tier 1 ratio 12.37 % 12.11 % 12.00 % 12.06 % 11.94 % 12.37 % 11.94 % Total capital $ 2,012,349 $ 1,997,378 $ 1,940,762 $ 1,907,441 $ 1,868,490 $ 2,012,349 $ 1,868,490 Total capital ratio 14.58 % 14.47 % 14.31 % 14.26 % 14.19 % 14.58 % 14.19 % Total capital in excess of minimum requirement $ 563,592 $ 548,037 $ 516,704 $ 503,152 $ 485,580 $ 563,592 $ 485,580 Total risk-weighted assets $ 13,797,681 $ 13,803,249 $ 13,562,455 $ 13,374,177 $ 13,170,574 $ 13,797,681 $ 13,170,574 Leverage ratio 9.93 % 9.73 % 9.75 % 9.70 % 9.59 % 9.93 % 9.59 % OTHER CAPITAL RATIOS Ending shareholders' equity to ending assets 13.50 % 12.81 % 12.99 % 12.94 % 12.49 % 13.50 % 12.49 % Ending tangible shareholders' equity to ending tangible assets (1) 7.98 % 7.23 % 7.23 % 7.17 % 6.50 % 7.98 % 6.50 % Average shareholders' equity to average assets 13.28 % 12.87 % 13.09 % 12.52 % 12.70 % 13.08 % 12.53 % Average tangible shareholders' equity to average tangible assets (1) 7.64 % 7.15 % 7.25 % 6.57 % 6.69 % 7.35 % 6.49 % 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-2024-financial-results-and-quarterly-dividend-302286504.html SOURCE First Financial Bancorp .

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