First Financial Bancorp Announces Third Quarter 2018 Results

PR Newswire

CINCINNATI, Oct. 18, 2018

CINCINNATI, Oct. 18, 2018 /PRNewswire/ -- First Financial Bancorp. FFBC ("First Financial" or the "Company") announced financial results for the third quarter of 2018.

For the three months ended September 30, 2018, the Company reported net income of $50.7 million, or $0.51 per diluted common share. These results compare to net income of $36.4 million, or $0.37 per diluted common share, for the second quarter of 2018 and $24.8 million, or $0.40 per diluted common share, for the third quarter of 2017. Net income was negatively impacted during the quarter by $6.3 million of merger related items, which reduced earnings per diluted common share by $0.07. For the nine months ended September 30, 2018, First Financial had earnings per diluted common share of $1.36 compared to $1.16 for the same period in 2017.

Return on average assets for the third quarter of 2018 was 1.45% while return on average tangible common equity was 18.52%. These compare to a return on average assets of 1.05% and return on average tangible common equity of 13.75% in the second quarter of 2018 and a return on average assets of 1.13% and a return on average tangible common equity of 14.11% in the third quarter of 2017. On an adjusted⁽¹⁾basis, third quarter 2018 return on average assets was 1.64% and return on average tangible common equity was 20.83%.

Third quarter 2018 highlights include:

After adjustments⁽¹⁾ for merger related items:

Net income of $0.58 per diluted common share
1.64% return on average assets
20.83% return on average tangible common equity

Total revenue of $152.8 million, as adjusted⁽¹⁾

Net interest margin declined 3 basis points from the linked quarter to 4.12% on a fully tax equivalent basis⁽¹⁾
Noninterest income increased $0.7 million to $29.3 million, as adjusted⁽¹⁾

Noninterest expenses of $85.4 million, or $78.0 million as adjusted⁽¹⁾

Efficiency ratio of 56.13% for the third quarter; 51.06% as adjusted⁽¹⁾

Improved loan origination activity

Loan fundings increased 9% compared to the linked quarter
Origination commitments increased 15% compared to the linked quarter

Stable credit performance with provision expense of $3.2 million; annualized net recoveries of 2 basis points as a percentage of average loans

Archie Brown, President and Chief Executive Officer, commented, "We are pleased with our third quarter performance as it demonstrates the earnings power of the Company. On an adjusted basis⁽¹⁾, earnings per share increased to $0.58 as our strong net interest margin, combined with improved efficiency, resulted in a top quartile return on assets and return on average tangible common equity."

⁽¹⁾Financial information in this release that is described as "adjusted" or that is presented on a fully tax equivalent basis is non-GAAP. 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.

Mr. Brown continued, "We are encouraged with the increases in loan fundings and commitments, however lower than expected credit line utilization and elevated payoffs led to a slight decline in overall balances. During the quarter we added depth to our commercial banking and business banking teams in addition to wealth advisors and mortgage loan officers and are approaching planned staffing levels in our targeted growth markets. We are optimistic that these investments will contribute to our planned revenue growth in 2019."

Mr. Brown concluded, "Our strong earnings for the quarter led to further strengthening of our capital ratios with tangible common equity increasing to 8.53% and tangible book value per share increasing to $11.25. As a result, in July our Board of Directors elected to increase the common dividend from $0.19 to $0.20 per share, which was the second dividend increase in 2018."

Full detail of the Company's third quarter and year to date 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 19, 2018 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. 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. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10124868. 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 Statement

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: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; (ii) 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; (iii) management's ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the possibility that any of the anticipated benefits of the Company's recent merger with MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers' performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Form 10-K for the year ended December 31, 2017, as well as its 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, 2018, the Company had $13.8 billion in assets, $8.8 billion in loans, $9.8 billion in deposits and $2.0 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.8 billion in assets under management as of September 30, 2018. The Company's primary operating markets are located in Ohio, Indiana and Kentucky where it operated 159 banking centers as of September 30, 2018, 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,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,
	2018			2018			2018			2017			2017			2018			2017
RESULTS OF OPERATIONS
Net income	$	50,657		$	36,418		$	30,506		$	24,811		$	24,826		$	117,581		$	71,976
Net earnings per share - basic	$	0.52		$	0.37		$	0.49		$	0.40		$	0.40		$	1.37		$	1.17
Net earnings per share - diluted	$	0.51		$	0.37		$	0.49		$	0.40		$	0.40		$	1.36		$	1.16
Dividends declared per share	$	0.20		$	0.19		$	0.19		$	0.17		$	0.17		$	0.58		$	0.51

KEY FINANCIAL RATIOS
Return on average assets	1.45		%	1.05		%	1.40		%	1.13		%	1.13		%	1.29		%	1.12		%
Return on average shareholders' equity	9.94		%	7.36		%	13.31		%	10.70		%	10.85		%	9.50		%	10.82		%
Return on average tangible shareholders' equity	18.52		%	13.75		%	17.18		%	13.85		%	14.11		%	16.42		%	14.16		%

Net interest margin	4.06		%	4.10		%	3.80		%	3.75		%	3.50		%	4.01		%	3.54		%
Net interest margin (fully tax equivalent) ⁽¹⁾	4.12		%	4.15		%	3.84		%	3.82		%	3.57		%	4.06		%	3.61		%

Ending shareholders' equity as a percent of ending assets	14.70		%	14.46		%	10.56		%	10.46		%	10.44		%	14.70		%	10.44		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	8.53		%	8.30		%	8.41		%	8.30		%	8.25		%	8.53		%	8.25		%
Risk-weighted assets	10.77		%	10.52		%	10.09		%	10.15		%	9.95		%	10.77		%	9.95		%

Average shareholders' equity as a percent of average assets	14.62		%	14.33		%	10.53		%	10.54		%	10.42		%	13.54		%	10.38		%
Average tangible shareholders' equity as a percent of
average tangible assets	8.42		%	8.16		%	8.35		%	8.34		%	8.21		%	8.31		%	8.13		%

Book value per share	$	20.79		$	20.56		$	15.11		$	14.99		$	14.74		$	20.79		$	14.74
Tangible book value per share	$	11.25		$	11.01		$	11.75		$	11.62		$	11.36		$	11.25		$	11.36

Common equity tier 1 ratio ⁽²⁾	11.52		%	11.15		%	10.77		%	10.63		%	10.53		%	11.52		%	10.53		%
Tier 1 ratio ⁽²⁾	11.93		%	11.55		%	10.77		%	10.63		%	10.53		%	11.93		%	10.53		%
Total capital ratio ⁽²⁾	13.77		%	13.36		%	13.17		%	13.07		%	12.98		%	13.77		%	12.98		%
Leverage ratio ⁽²⁾	9.41		%	9.06		%	9.00		%	8.84		%	8.74		%	9.41		%	8.74		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽³⁾	$	8,848,710		$	8,933,400		$	6,016,492		$	5,952,290		$	5,902,053		$	7,943,242		$	5,809,998
FDIC indemnification asset	—			—			1,502			7,413			8,932			495			10,250
Investment securities	3,168,044			3,157,339			2,042,781			2,020,040			2,041,785			2,793,510			1,995,101
Interest-bearing deposits with other banks	39,873			29,261			27,073			25,357			37,199			32,116			32,812
Total earning assets	$	12,056,627		$	12,120,000		$	8,087,848		$	8,005,100		$	7,989,969		$	10,769,363		$	7,848,161
Total assets	$	13,822,675		$	13,956,360		$	8,830,176		$	8,731,956		$	8,716,917		$	12,221,358		$	8,570,777
Noninterest-bearing deposits	$	2,388,976		$	2,421,230		$	1,570,572		$	1,637,228		$	1,510,032		$	2,129,924		$	1,507,748
Interest-bearing deposits	7,499,112			7,961,405			5,332,740			5,202,412			5,170,365			6,939,021			5,057,285
Total deposits	$	9,888,088		$	10,382,635		$	6,903,312		$	6,839,640		$	6,680,397		$	9,068,945		$	6,565,033
Borrowings	$	1,748,415		$	1,408,024		$	866,848		$	842,211		$	999,818		$	1,344,325		$	987,874
Shareholders' equity	$	2,021,400		$	2,000,093		$	929,474		$	920,194		$	908,057		$	1,654,322		$	889,760

CREDIT QUALITY RATIOS
Allowance to ending loans	0.65		%	0.61		%	0.89		%	0.90		%	0.91		%	0.65		%	0.91		%
Allowance to nonaccrual loans	136.22		%	133.65		%	179.57		%	224.32		%	181.07		%	136.22		%	181.07		%
Allowance to nonperforming loans	92.08		%	86.80		%	120.24		%	129.77		%	109.48		%	92.08		%	109.48		%
Nonperforming loans to total loans	0.71		%	0.70		%	0.74		%	0.69		%	0.83		%	0.71		%	0.83		%
Nonperforming assets to ending loans, plus OREO	0.73		%	0.72		%	0.76		%	0.74		%	0.89		%	0.73		%	0.89		%
Nonperforming assets to total assets	0.47		%	0.46		%	0.52		%	0.50		%	0.60		%	0.47		%	0.60		%
Classified assets to total assets	1.00		%	1.00		%	0.98		%	0.98		%	1.08		%	1.00		%	1.08		%
Net charge-offs to average loans (annualized)	(0.02)		%	0.18		%	0.13		%	0.02		%	0.22		%	0.09		%	0.17		%

(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 for 2018 and a 35% tax rate for 2017. 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.

(2) September 30, 2018 regulatory capital ratios are preliminary.

(3) 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,
	2018			2017			% Change		2018			2017			% Change
Interest income
Loans and leases, including fees	$	123,397		$	71,148		73.4	%	$	320,607		$	205,764		55.8	%
Investment securities
Taxable	21,801			13,150			65.8	%	56,315			37,356			50.8	%
Tax-exempt	3,807			1,537			147.7	%	9,532			4,347			119.3	%
Total investment securities interest	25,608			14,687			74.4	%	65,847			41,703			57.9	%
Other earning assets	215			(917)			123.4	%	499			(2,932)			117.0	%
Total interest income	149,220			84,918			75.7	%	386,953			244,535			58.2	%

Interest expense
Deposits	14,672			10,335			42.0	%	39,764			25,939			53.3	%
Short-term borrowings	6,052			2,566			135.9	%	12,847			6,049			112.4	%
Long-term borrowings	5,011			1,538			225.8	%	11,066			4,616			139.7	%
Total interest expense	25,735			14,439			78.2	%	63,677			36,604			74.0	%
Net interest income	123,485			70,479			75.2	%	323,276			207,931			55.5	%
Provision for loan and lease losses	3,238			2,953			9.7	%	9,276			3,787			144.9	%
Net interest income after provision for loan and lease losses	120,247			67,526			78.1	%	314,000			204,144			53.8	%

Noninterest income
Service charges on deposit accounts	10,316			5,169			99.6	%	24,923			14,585			70.9	%
Trust and wealth management fees	3,728			3,324			12.2	%	11,379			10,476			8.6	%
Bankcard income	5,261			3,272			60.8	%	13,998			9,908			41.3	%
Client derivative fees	3,029			1,779			70.3	%	6,249			4,371			43.0	%
Net gains from sales of loans	1,739			1,455			19.5	%	4,643			3,998			16.1	%
Net gains (losses) on sale of investment securities	(167)			276			(160.5)	%	(197)			1,630			(112.1)	%
Other	4,778			7,667			(37.7)	%	12,883			12,792			0.7	%
Total noninterest income	28,684			22,942			25.0	%	73,878			57,760			27.9	%

Noninterest expenses
Salaries and employee benefits	50,852			33,827			50.3	%	137,485			97,121			41.6	%
Net occupancy	6,765			4,328			56.3	%	17,893			13,145			36.1	%
Furniture and equipment	4,072			2,161			88.4	%	11,410			6,474			76.2	%
Data processing	4,502			3,455			30.3	%	22,478			10,254			119.2	%
Marketing	2,502			649			285.5	%	5,947			2,141			177.8	%
Communication	785			430			82.6	%	2,362			1,345			75.6	%
Professional services	2,621			2,030			29.1	%	10,478			5,257			99.3	%
State intangible tax	1,223			721			69.6	%	3,066			2,163			41.7	%
FDIC assessments	734			1,051			(30.2)	%	2,951			3,001			(1.7)	%
Loss (gain) - other real estate owned	538			237			127.0	%	332			423			(21.5)	%
Other	10,821			5,554			94.8	%	26,056			15,720			65.8	%
Total noninterest expenses	85,415			54,443			56.9	%	240,458			157,044			53.1	%
Income before income taxes	63,516			36,025			76.3	%	147,420			104,860			40.6	%
Income tax expense	12,859			11,199			14.8	%	29,839			32,884			(9.3)	%
Net income	$	50,657		$	24,826		104.0	%	$	117,581		$	71,976		63.4	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.52		$	0.40				$	1.37		$	1.17
Net earnings per share - diluted	$	0.51		$	0.40				$	1.36		$	1.16
Dividends declared per share	$	0.20		$	0.17				$	0.58		$	0.51

Return on average assets	1.45		%	1.13		%			1.29		%	1.12		%
Return on average shareholders' equity	9.94		%	10.85		%			9.50		%	10.82		%

Interest income	$	149,220		$	84,918		75.7	%	$	386,953		$	244,535		58.2	%
Tax equivalent adjustment	1,567			1,353			15.8	%	3,705			3,872			(4.3)	%
Interest income - tax equivalent	150,787			86,271			74.8	%	390,658			248,407			57.3	%
Interest expense	25,735			14,439			78.2	%	63,677			36,604			74.0	%
Net interest income - tax equivalent	$	125,052		$	71,832		74.1	%	$	326,981		$	211,803		54.4	%

Net interest margin	4.06		%	3.50		%			4.01		%	3.54		%
Net interest margin (fully tax equivalent) ⁽¹⁾	4.12		%	3.57		%			4.06		%	3.61		%

Full-time equivalent employees	2,028			1,363

(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 for 2018 and a 35% tax rate for 2017. 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.
N/M = Not meaningful.

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2018
	Third			Second			First			Full			% Change
	Quarter			Quarter			Quarter			Year			Linked Qtr.
Interest income
Loans and leases, including fees	$	123,397		$	122,290		$	74,920		$	320,607		0.9	%
Investment securities
Taxable	21,801			20,844			13,670			56,315			4.6	%
Tax-exempt	3,807			4,068			1,657			9,532			(6.4)	%
Total investment securities interest	25,608			24,912			15,327			65,847			2.8	%
Other earning assets	215			177			107			499			21.5	%
Total interest income	149,220			147,379			90,354			386,953			1.2	%

Interest expense
Deposits	14,672			14,794			10,298			39,764			(0.8)	%
Short-term borrowings	6,052			4,132			2,663			12,847			46.5	%
Long-term borrowings	5,011			4,474			1,581			11,066			12.0	%
Total interest expense	25,735			23,400			14,542			63,677			10.0	%
Net interest income	123,485			123,979			75,812			323,276			(0.4)	%
Provision for loan and lease losses	3,238			3,735			2,303			9,276			(13.3)	%
Net interest income after provision for loan and lease losses	120,247			120,244			73,509			314,000			0.0	%

Noninterest income
Service charges on deposit accounts	10,316			9,568			5,039			24,923			7.8	%
Trust and wealth management fees	3,728			3,697			3,954			11,379			0.8	%
Bankcard income	5,261			5,343			3,394			13,998			(1.5)	%
Client derivative fees	3,029			1,463			1,757			6,249			107.0	%
Net gains from sales of loans	1,739			2,316			588			4,643			(24.9)	%
Net gains (losses) on sale of investment securities	(167)			(30)			0			(197)			456.7	%
Other	4,778			5,899			2,206			12,883			(19.0)	%
Total noninterest income	28,684			28,256			16,938			73,878			1.5	%

Noninterest expenses
Salaries and employee benefits	50,852			55,531			31,102			137,485			(8.4)	%
Net occupancy	6,765			6,631			4,497			17,893			2.0	%
Furniture and equipment	4,072			5,298			2,040			11,410			(23.1)	%
Data processing	4,502			14,304			3,672			22,478			(68.5)	%
Marketing	2,502			2,644			801			5,947			(5.4)	%
Communication	785			1,118			459			2,362			(29.8)	%
Professional services	2,621			5,659			2,198			10,478			(53.7)	%
State intangible tax	1,223			1,078			765			3,066			13.5	%
FDIC assessments	734			1,323			894			2,951			(44.5)	%
Loss (gain) - other real estate owned	538			(283)			77			332			(290.1)	%
Other	10,821			9,452			5,783			26,056			14.5	%
Total noninterest expenses	85,415			102,755			52,288			240,458			(16.9)	%
Income before income taxes	63,516			45,745			38,159			147,420			38.8	%
Income tax expense	12,859			9,327			7,653			29,839			37.9	%
Net income	$	50,657		$	36,418		$	30,506		$	117,581		39.1	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.52		$	0.37		$	0.49		$	1.37
Net earnings per share - diluted	$	0.51		$	0.37		$	0.49		$	1.36
Dividends declared per share	$	0.20		$	0.19		$	0.19		$	0.58

Return on average assets	1.45		%	1.05		%	1.40		%	1.29		%
Return on average shareholders' equity	9.94		%	7.36		%	13.31		%	9.50		%

Interest income	$	149,220		$	147,379		$	90,354		$	386,953		1.2	%
Tax equivalent adjustment	1,567			1,420			718			3,705			10.4	%
Interest income - tax equivalent	150,787			148,799			91,072			390,658			1.3	%
Interest expense	25,735			23,400			14,542			63,677			10.0	%
Net interest income - tax equivalent	$	125,052		$	125,399		$	76,530		$	326,981		(0.3)	%

Net interest margin	4.06		%	4.10		%	3.80		%	4.01		%
Net interest margin (fully tax equivalent)⁽¹⁾	4.12		%	4.15		%	3.84		%	4.06		%

Full-time equivalent employees	2,028			2,118			1,289

(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 for 2018 and a 35% tax rate for 2017. 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.
N/M = Not meaningful.

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2017
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans and leases, including fees	$	74,347		$	71,148		$	67,748		$	66,868		$	280,111
Investment securities
Taxable	13,212			13,150			12,598			11,608			50,568
Tax-exempt	1,571			1,537			1,457			1,353			5,918
Total investment securities interest	14,783			14,687			14,055			12,961			56,486
Other earning assets	(592)			(917)			(1,014)			(1,001)			(3,524)
Total interest income	88,538			84,918			80,789			78,828			333,073

Interest expense
Deposits	9,243			10,335			8,679			6,925			35,182
Short-term borrowings	2,144			2,566			2,051			1,432			8,193
Long-term borrowings	1,537			1,538			1,539			1,539			6,153
Total interest expense	12,924			14,439			12,269			9,896			49,528
Net interest income	75,614			70,479			68,520			68,932			283,545
Provision for loan and lease losses	(205)			2,953			467			367			3,582
Net interest income after provision for loan and lease losses	75,819			67,526			68,053			68,565			279,963

Noninterest income
Service charges on deposit accounts	5,190			5,169			4,772			4,644			19,775
Trust and wealth management fees	3,597			3,324			3,405			3,747			14,073
Bankcard income	3,390			3,272			3,501			3,135			13,298
Client derivative fees	2,047			1,779			1,489			1,103			6,418
Net gains from sales of loans	1,171			1,455			1,327			1,216			5,169
Net gains on sale of investment securities	19			276			838			516			1,649
Other	2,968			7,667			2,122			3,003			15,760
Total noninterest income	18,382			22,942			17,454			17,364			76,142

Noninterest expenses
Salaries and employee benefits	35,439			33,827			31,544			31,750			132,560
Net occupancy	4,252			4,328			4,302			4,515			17,397
Furniture and equipment	1,969			2,161			2,136			2,177			8,443
Data processing	3,768			3,455			3,501			3,298			14,022
Marketing	1,060			649			982			510			3,201
Communication	474			430			468			447			1,819
Professional services	9,766			2,030			1,469			1,758			15,023
State intangible tax	492			721			721			721			2,655
FDIC assessments	943			1,051			1,018			932			3,944
Loss (gain) - other real estate owned	219			237			162			24			642
Other	24,516			5,554			5,253			4,913			40,236
Total noninterest expenses	82,898			54,443			51,556			51,045			239,942
Income before income taxes	11,303			36,025			33,951			34,884			116,163
Income tax expense (benefit)	(13,508)			11,199			11,215			10,470			19,376
Net income	$	24,811		$	24,826		$	22,736		$	24,414		$	96,787

ADDITIONAL DATA
Net earnings per share - basic	$	0.40		$	0.40		$	0.37		$	0.40		$	1.57
Net earnings per share - diluted	$	0.40		$	0.40		$	0.37		$	0.39		$	1.56
Dividends declared per share	$	0.17		$	0.17		$	0.17		$	0.17		$	0.68

Return on average assets	1.13		%	1.13		%	1.06		%	1.18		%	1.12		%
Return on average shareholders' equity	10.70		%	10.85		%	10.25		%	11.36		%	10.78		%

Interest income	$	88,538		$	84,918		$	80,789		$	78,828		$	333,073
Tax equivalent adjustment	1,387			1,353			1,294			1,225			5,259
Interest income - tax equivalent	89,925			86,271			82,083			80,053			338,332
Interest expense	12,924			14,439			12,269			9,896			49,528
Net interest income - tax equivalent	$	77,001		$	71,832		$	69,814		$	70,157		$	288,804

Net interest margin	3.75		%	3.50		%	3.50		%	3.63		%	3.59		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.82		%	3.57		%	3.56		%	3.70		%	3.66		%

Full-time equivalent employees	1,304			1,363			1,429			1,424

(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 for 2018 and a 35% tax rate for 2017. 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,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		% Change		% Change
	2018		2018		2018		2017		2017		Linked Qtr.		Comparable Qtr.
ASSETS
Cash and due from banks	$	193,288	$	216,667	$	116,581	$	150,650	$	117,840	(10.8)	%	64.0	%
Interest-bearing deposits with other banks	28,989		37,915		10,200		33,974		34,787		(23.5)	%	(16.7)	%
Investment securities available-for-sale	2,626,726		2,654,909		1,359,381		1,349,408		1,286,770		(1.1)	%	104.1	%
Investment securities held-to-maturity	434,369		443,957		633,722		654,008		669,816		(2.2)	%	(35.2)	%
Other investments	115,757		95,004		53,070		53,140		53,198		21.8	%	117.6	%
Loans held for sale	13,277		15,821		8,048		11,502		16,466		(16.1)	%	(19.4)	%
Loans and leases
Commercial and industrial	2,426,590		2,440,596		1,943,741		1,912,743		1,886,093		(0.6)	%	28.7	%
Lease financing	95,317		96,198		81,617		89,347		86,014		(0.9)	%	10.8	%
Construction real estate	565,077		555,468		494,665		467,730		420,941		1.7	%	34.2	%
Commercial real estate	3,868,143		3,888,993		2,544,051		2,490,091		2,523,387		(0.5)	%	53.3	%
Residential real estate	932,962		918,904		468,584		471,391		477,964		1.5	%	95.2	%
Home equity	816,133		835,031		483,643		493,604		494,342		(2.3)	%	65.1	%
Installment	97,413		100,726		39,248		41,586		43,650		(3.3)	%	123.2	%
Credit card	45,741		48,665		46,472		46,691		44,646		(6.0)	%	2.5	%
Total loans	8,847,376		8,884,581		6,102,021		6,013,183		5,977,037		(0.4)	%	48.0	%
Less:
Allowance for loan and lease losses	57,715		54,076		54,380		54,021		54,534		6.7	%	5.8	%
Net loans	8,789,661		8,830,505		6,047,641		5,959,162		5,922,503		(0.5)	%	48.4	%
Premises and equipment	219,940		223,950		127,046		125,036		126,790		(1.8)	%	73.5	%
Goodwill and other intangibles	934,360		934,656		209,053		209,379		209,730		0.0	%	345.5	%
Accrued interest and other assets	486,300		466,783		333,687		350,664		323,789		4.2	%	50.2	%
Total Assets	$	13,842,667	$	13,920,167	$	8,898,429	$	8,896,923	$	8,761,689	(0.6)	%	58.0	%

LIABILITIES
Deposits
Interest-bearing demand	$	2,284,271	$	2,440,088	$	1,442,399	$	1,453,463	$	1,518,011	(6.4)	%	50.5	%
Savings	3,134,944		3,087,683		2,450,196		2,462,420		2,434,086		1.5	%	28.8	%
Time	1,957,574		2,104,044		1,545,273		1,317,105		1,188,597		(7.0)	%	64.7	%
Total interest-bearing deposits	7,376,789		7,631,815		5,437,868		5,232,988		5,140,694		(3.3)	%	43.5	%
Noninterest-bearing	2,375,845		2,471,932		1,572,636		1,662,058		1,585,396		(3.9)	%	49.9	%
Total deposits	9,752,634		10,103,747		7,010,504		6,895,046		6,726,090		(3.5)	%	45.0	%
Federal funds purchased and securities sold
under agreements to repurchase	123,452		88,070		56,732		72,265		45,532		40.2	%	171.1	%
FHLB short-term borrowings	1,170,800		1,100,233		601,600		742,300		818,200		6.4	%	43.1	%
Total short-term borrowings	1,294,252		1,188,303		658,332		814,565		863,732		8.9	%	49.8	%
Long-term debt	570,037		469,423		169,695		119,654		119,615		21.4	%	376.6	%
Total borrowed funds	1,864,289		1,657,726		828,027		934,219		983,347		12.5	%	89.6	%
Accrued interest and other liabilities	190,224		145,757		119,913		136,994		137,298		30.5	%	38.5	%
Total Liabilities	11,807,147		11,907,230		7,958,444		7,966,259		7,846,735		(0.8)	%	50.5	%

SHAREHOLDERS' EQUITY
Common stock	1,633,828		1,632,572		571,457		573,109		571,750		0.1	%	185.8	%
Retained earnings	564,545		533,319		515,498		491,847		477,588		5.9	%	18.2	%
Accumulated other comprehensive loss	(52,897)		(43,008)		(34,683)		(20,390)		(20,379)		23.0	%	159.6	%
Treasury stock, at cost	(109,956)		(109,946)		(112,287)		(113,902)		(114,005)		0.0	%	(3.6)	%
Total Shareholders' Equity	2,035,520		2,012,937		939,985		930,664		914,954		1.1	%	122.5	%
Total Liabilities and Shareholders' Equity	$	13,842,667	$	13,920,167	$	8,898,429	$	8,896,923	$	8,761,689	(0.6)	%	58.0	%

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	Quarterly Averages										Year-to-Date Averages
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		September 30,
	2018		2018		2018		2017		2017		2018		2017
ASSETS
Cash and due from banks	$	199,843	$	224,824	$	116,095	$	121,792	$	111,984	$	180,561	$	114,595
Federal funds sold	0		786		0		0		0		262		0
Interest-bearing deposits with other banks	39,873		28,475		27,073		25,357		37,199		31,854		32,812
Investment securities	3,168,044		3,157,339		2,042,781		2,020,040		2,041,785		2,793,510		1,995,101
Loans held for sale	15,270		14,462		9,171		12,572		12,705		12,990		10,041
Loans and leases
Commercial and industrial	2,392,229		2,421,244		1,897,726		1,857,546		1,843,677		2,238,878		1,801,899
Lease financing	94,030		94,431		86,755		84,635		85,649		91,765		87,345
Construction real estate	570,125		577,883		483,930		449,195		408,373		544,295		423,355
Commercial real estate	3,887,748		3,923,784		2,495,604		2,487,149		2,497,170		3,440,811		2,435,569
Residential real estate	918,361		929,667		468,855		477,454		489,508		773,941		492,514
Home equity	822,834		825,236		487,073		494,804		473,988		712,944		465,465
Installment	99,907		99,896		40,409		42,283		45,911		80,289		49,285
Credit card	48,206		46,797		46,969		46,652		45,072		47,329		44,525
Total loans	8,833,440		8,918,938		6,007,321		5,939,718		5,889,348		7,930,252		5,799,957
Less:
Allowance for loan and lease losses	55,877		55,318		55,016		55,279		55,326		55,407		57,044
Net loans	8,777,563		8,863,620		5,952,305		5,884,439		5,834,022		7,874,845		5,742,913
Premises and equipment	222,718		230,475		126,016		126,310		128,539		193,424		130,845
Goodwill and other intangibles	935,930		937,457		209,244		209,571		209,933		696,872		210,218
Accrued interest and other assets	463,434		498,922		347,491		331,875		340,750		437,040		334,252
Total Assets	$	13,822,675	$	13,956,360	$	8,830,176	$	8,731,956	$	8,716,917	$	12,221,358	$	8,570,777

LIABILITIES
Deposits
Interest-bearing demand	$	2,334,305	$	2,573,150	$	1,415,603	$	1,502,245	$	1,494,367	$	2,111,051	$	1,487,363
Savings	3,149,871		3,196,059		2,450,697		2,518,771		2,494,592		2,934,770		2,377,072
Time	2,014,936		2,192,196		1,466,440		1,181,396		1,181,406		1,893,200		1,192,850
Total interest-bearing deposits	7,499,112		7,961,405		5,332,740		5,202,412		5,170,365		6,939,021		5,057,285
Noninterest-bearing	2,388,976		2,421,230		1,570,572		1,637,228		1,510,032		2,129,924		1,507,748
Total deposits	9,888,088		10,382,635		6,903,312		6,839,640		6,680,397		9,068,945		6,565,033
Federal funds purchased and securities sold
under agreements to repurchase	112,308		97,708		72,865		57,131		71,315		94,438		74,024
FHLB short-term borrowings	1,076,106		818,909		667,641		660,859		808,842		855,715		794,211
Total short-term borrowings	1,188,414		916,617		740,506		717,990		880,157		950,153		868,235
Long-term debt	560,001		491,407		126,342		124,221		119,661		394,172		119,639
Total borrowed funds	1,748,415		1,408,024		866,848		842,211		999,818		1,344,325		987,874
Accrued interest and other liabilities	164,772		165,608		130,542		129,911		128,645		153,766		128,110
Total Liabilities	11,801,275		11,956,267		7,900,702		7,811,762		7,808,860		10,567,036		7,681,017

SHAREHOLDERS' EQUITY
Common stock	1,633,129		1,632,569		572,915		572,392		570,216		1,283,421		569,643
Retained earnings	542,835		517,548		503,140		483,554		470,591		521,320		456,552
Accumulated other comprehensive loss	(44,505)		(39,117)		(33,285)		(21,740)		(19,940)		(39,010)		(23,613)
Treasury stock, at cost	(110,059)		(110,907)		(113,296)		(114,012)		(112,810)		(111,409)		(112,822)
Total Shareholders' Equity	2,021,400		2,000,093		929,474		920,194		908,057		1,654,322		889,760
Total Liabilities and Shareholders' Equity	$	13,822,675	$	13,956,360	$	8,830,176	$	8,731,956	$	8,716,917	$	12,221,358	$	8,570,777

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)

	Quarterly Averages												Year-to-Date Averages
	September 30, 2018				June 30, 2018				September 30, 2017				September 30, 2018				September 30, 2017
	Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities	$	3,168,044	3.21	%	$	3,157,339	3.16	%	$	2,041,785	2.85	%	$	2,793,510	3.15	%	$	1,995,101	2.79	%
Interest-bearing deposits with other banks	39,873		2.14	%	29,261		2.43	%	37,199		1.28	%	32,116		2.08	%	32,812		1.05	%
Gross loans ⁽¹⁾	8,848,710		5.53	%	8,933,400		5.49	%	5,910,985		4.71	%	7,943,737		5.40	%	5,820,248		4.65	%
Total earning assets	12,056,627		4.91	%	12,120,000		4.88	%	7,989,969		4.22	%	10,769,363		4.80	%	7,848,161		4.17	%

Nonearning assets
Allowance for loan and lease losses	(55,877)				(55,318)				(55,326)				(55,407)				(57,044)
Cash and due from banks	199,843				224,824				111,984				180,561				114,595
Accrued interest and other assets	1,622,082				1,666,854				670,290				1,326,841				665,065
Total assets	$	13,822,675			$	13,956,360			$	8,716,917			$	12,221,358			$	8,570,777

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	2,334,305	0.34	%	$	2,573,150	0.36	%	$	1,494,367	0.33	%	$	2,111,051	0.36	%	$	1,487,363	0.27	%
Savings	3,149,871		0.59	%	3,196,059		0.54	%	2,494,592		0.82	%	2,934,770		0.58	%	2,377,072		0.67	%
Time	2,014,936		1.58	%	2,192,196		1.50	%	1,181,406		1.32	%	1,893,200		1.51	%	1,192,850		1.24	%
Total interest-bearing deposits	7,499,112		0.78	%	7,961,405		0.75	%	5,170,365		0.79	%	6,939,021		0.77	%	5,057,285		0.69	%
Borrowed funds
Short-term borrowings	1,188,414		2.02	%	916,617		1.81	%	880,157		1.16	%	950,153		1.81	%	868,235		0.93	%
Long-term debt	560,001		3.55	%	491,407		3.65	%	119,661		5.10	%	394,172		3.75	%	119,639		5.16	%
Total borrowed funds	1,748,415		2.51	%	1,408,024		2.45	%	999,818		1.63	%	1,344,325		2.38	%	987,874		1.44	%
Total interest-bearing liabilities	9,247,527		1.10	%	9,369,429		1.00	%	6,170,183		0.93	%	8,283,346		1.03	%	6,045,159		0.81	%

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	2,388,976				2,421,230				1,510,032				2,129,924				1,507,748
Other liabilities	164,772				165,608				128,645				153,766				128,110
Shareholders' equity	2,021,400				2,000,093				908,057				1,654,322				889,760
Total liabilities & shareholders' equity	$	13,822,675			$	13,956,360			$	8,716,917			$	12,221,358			$	8,570,777

Net interest income	$	123,485			$	123,979			$	70,479			$	323,276			$	207,931
Net interest spread			3.81	%			3.88	%			3.29	%			3.77	%			3.36	%
Net interest margin			4.06	%			4.10	%			3.50	%			4.01	%			3.54	%

Tax equivalent adjustment			0.06	%			0.05	%			0.07	%			0.05	%			0.07	%
Net interest margin (fully tax equivalent)			4.12	%			4.15	%			3.57	%			4.06	%			3.61	%


⁽¹⁾ Loans held for sale, nonaccrual loans, and indemnification asset 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	$	332	$	364	$	696	$	1,817	$	9,104	$	10,921	$	5,324	$	18,820	$	24,144
Interest-bearing deposits with other banks	(21)		59		38		81		14		95		253		(11)		242
Gross loans ⁽²⁾	934		173		1,107		12,319		40,967		53,286		32,329		85,703		118,032
Total earning assets	1,245		596		1,841		14,217		50,085		64,302		37,906		104,512		142,418

Interest-bearing liabilities
Total interest-bearing deposits	$	613	$	(735)	$	(122)	$	(219)	$	4,556	$	4,337	$	3,042	$	10,783	$	13,825
Borrowed funds
Short-term borrowings	485		1,435		1,920		1,916		1,570		3,486		5,690		1,108		6,798
Long-term debt	(125)		662		537		(467)		3,940		3,473		(1,257)		7,707		6,450
Total borrowed funds	360		2,097		2,457		1,449		5,510		6,959		4,433		8,815		13,248
Total interest-bearing liabilities	973		1,362		2,335		1,230		10,066		11,296		7,475		19,598		27,073
Net interest income ⁽¹⁾	$	272	$	(766)	$	(494)	$	12,987	$	40,019	$	53,006	$	30,431	$	84,914	$	115,345


⁽¹⁾ Not tax equivalent.
⁽²⁾ Loans held for sale, nonaccrual loans, and indemnification asset are included in gross loans.

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)

																Nine months ended,
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,			Sep. 30,
	2018			2018			2018			2017			2017			2018			2017
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	54,076		$	54,380		$	54,021		$	54,534		$	54,873		$	54,021		$	57,961
Provision for loan and lease losses	3,238			3,735			2,303			(205)			2,953			9,276			3,787
Gross charge-offs
Commercial and industrial	232			4,356			885			1,264			4,122			5,473			8,930
Construction real estate	0			0			0			1			0			0			0
Commercial real estate	902			78			2,176			10			58			3,156			1,028
Residential real estate	145			101			96			128			23			342			307
Home equity	351			385			242			278			71			978			635
Installment	43			218			16			26			24			277			199
Credit card	390			684			254			209			201			1,328			648
Total gross charge-offs	2,063			5,822			3,669			1,916			4,499			11,554			11,747
Recoveries
Commercial and industrial	627			518			436			370			325			1,581			1,280
Lease financing	0			1			0			0			0			1			1
Construction real estate	146			0			0			0			0			146			89
Commercial real estate	786			887			752			480			585			2,425			2,239
Residential real estate	71			70			26			77			70			167			138
Home equity	419			187			429			589			110			1,035			438
Installment	351			82			48			46			74			481			188
Credit card	64			38			34			46			43			136			160
Total recoveries	2,464			1,783			1,725			1,608			1,207			5,972			4,533
Total net charge-offs	(401)			4,039			1,944			308			3,292			5,582			7,214
Ending allowance for loan and lease losses	$	57,715		$	54,076		$	54,380		$	54,021		$	54,534		$	57,715		$	54,534

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	(0.07)		%	0.64		%	0.10		%	0.19		%	0.82		%	0.23		%	0.57		%
Lease financing	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Construction real estate	(0.10)		%	0.00		%	0.00		%	0.00		%	0.00		%	(0.04)		%	(0.03)		%
Commercial real estate	0.01		%	(0.08)		%	0.23		%	(0.07)		%	(0.08)		%	0.03		%	(0.07)		%
Residential real estate	0.03		%	0.01		%	0.06		%	0.04		%	(0.04)		%	0.03		%	0.05		%
Home equity	(0.03)		%	0.10		%	(0.16)		%	(0.25)		%	(0.03)		%	(0.01)		%	0.06		%
Installment	(1.22)		%	0.55		%	(0.32)		%	(0.19)		%	(0.43)		%	(0.34)		%	0.03		%
Credit card	2.68		%	5.54		%	1.90		%	1.39		%	1.39		%	3.37		%	1.47		%
Total net charge-offs	(0.02)		%	0.18		%	0.13		%	0.02		%	0.22		%	0.09		%	0.17		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans ⁽¹⁾
Commercial and industrial	$	4,310		$	3,448		$	6,275		$	5,229		$	9,026		$	4,310		$	9,026
Lease financing	0			0			0			82			87			0			87
Construction real estate	10			24			26			29			824			10			824
Commercial real estate	20,338			21,593			16,878			10,616			12,244			20,338			12,244
Residential real estate	11,365			9,278			3,324			4,140			4,333			11,365			4,333
Home equity	6,018			5,820			3,484			3,743			3,364			6,018			3,364
Installment	327			299			296			243			240			327			240
Nonaccrual loans	42,368			40,462			30,283			24,082			30,118			42,368			30,118
Accruing troubled debt restructurings (TDRs)	20,313			21,839			14,943			17,545			19,692			20,313			19,692
Total nonperforming loans	62,681			62,301			45,226			41,627			49,810			62,681			49,810
Other real estate owned (OREO)	1,918			1,853			1,065			2,781			3,116			1,918			3,116
Total nonperforming assets	64,599			64,154			46,291			44,408			52,926			64,599			52,926
Accruing loans past due 90 days or more	144			327			529			61			84			144			84
Total underperforming assets	$	64,743		$	64,481		$	46,820		$	44,469		$	53,010		$	64,743		$	53,010
Total classified assets	$	138,868		$	139,317		$	87,577		$	87,293		$	94,320		$	138,868		$	94,320

CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans	136.22		%	133.65		%	179.57		%	224.32		%	181.07		%	136.22		%	181.07		%
Nonperforming loans	92.08		%	86.80		%	120.24		%	129.77		%	109.48		%	92.08		%	109.48		%
Total ending loans	0.65		%	0.61		%	0.89		%	0.90		%	0.91		%	0.65		%	0.91		%
Nonperforming loans to total loans	0.71		%	0.70		%	0.74		%	0.69		%	0.83		%	0.71		%	0.83		%
Nonperforming assets to
Ending loans, plus OREO	0.73		%	0.72		%	0.76		%	0.74		%	0.89		%	0.73		%	0.89		%
Total assets	0.47		%	0.46		%	0.52		%	0.50		%	0.60		%	0.47		%	0.60		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.50		%	0.48		%	0.51		%	0.45		%	0.56		%	0.50		%	0.56		%
Total assets	0.32		%	0.30		%	0.35		%	0.30		%	0.38		%	0.32		%	0.38		%
Classified assets to total assets	1.00		%	1.00		%	0.98		%	0.98		%	1.08		%	1.00		%	1.08		%

(1) Nonaccrual loans include nonaccrual TDRs of $4.7 million, $5.9 million, $6.0 million, $6.4 million, and $9.1 million, as of September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively.

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																Nine months ended,
	Sep. 30,			June 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,			Sep. 30,
	2018			2018			2018			2017			2017			2018			2017
PER COMMON SHARE
Market Price
High	$	32.35		$	33.55		$	29.35		$	29.15		$	28.50		$	33.55		$	28.95
Low	$	29.40		$	28.10		$	26.40		$	25.30		$	23.10		$	26.40		$	23.10
Close	$	29.70		$	30.65		$	29.35		$	26.35		$	26.15		$	29.70		$	26.15

Average shares outstanding - basic	97,411,201			97,347,533			61,654,686			61,595,629			61,577,619			85,602,116			61,507,160
Average shares outstanding - diluted	98,484,228			98,432,072			62,180,744			62,131,840			62,189,637			86,639,927			62,185,874
Ending shares outstanding	97,914,526			97,904,897			62,213,823			62,069,087			62,061,465			97,914,526			62,061,465

Total shareholders' equity	$	2,035,520		$	2,012,937		$	939,985		$	930,664		$	914,954		$	2,035,520		$	914,954

REGULATORY CAPITAL	Preliminary															Preliminary
Common equity tier 1 capital	$	1,177,630		$	1,142,718		$	779,491		$	755,735		$	746,730		$	1,177,630		$	746,730
Common equity tier 1 capital ratio	11.52		%	11.15		%	10.77		%	10.63		%	10.53		%	11.52		%	10.53		%
Tier 1 capital	$	1,219,383		$	1,184,471		$	779,595		$	755,839		$	746,834		$	1,219,383		$	746,834
Tier 1 ratio	11.93		%	11.55		%	10.77		%	10.63		%	10.53		%	11.93		%	10.53		%
Total capital	$	1,407,252		$	1,369,231		$	953,243		$	929,148		$	920,642		$	1,407,252		$	920,642
Total capital ratio	13.77		%	13.36		%	13.17		%	13.07		%	12.98		%	13.77		%	12.98		%
Total capital in excess of minimum
requirement	$	397,783		$	356,930		$	238,221		$	271,600		$	264,751		$	397,783		$	264,751
Total risk-weighted assets	$	10,222,466		$	10,251,147		$	7,240,731		$	7,108,629		$	7,090,714		$	10,222,466		$	7,090,714
Leverage ratio	9.41		%	9.06		%	9.00		%	8.84		%	8.74		%	9.41		%	8.74		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	14.70		%	14.46		%	10.56		%	10.46		%	10.44		%	14.70		%	10.44		%
Ending tangible shareholders' equity to ending tangible assets	8.53		%	8.30		%	8.41		%	8.30		%	8.25		%	8.53		%	8.25		%
Average shareholders' equity to average assets	14.62		%	14.33		%	10.53		%	10.54		%	10.42		%	13.54		%	10.38		%
Average tangible shareholders' equity to average tangible assets	8.42		%	8.16		%	8.35		%	8.34		%	8.21		%	8.31		%	8.13		%

View original content:http://www.prnewswire.com/news-releases/first-financial-bancorp-announces-third-quarter-2018-results-300733909.html

SOURCE First Financial Bancorp.

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First Financial Bancorp Announces Third Quarter 2018 Results

First Financial Bancorp Announces Third Quarter 2018 Results

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