First Financial Bancorp Announces Fourth Quarter and Full Year 2018 Results and 10% Dividend Increase

CINCINNATI, Jan. 23, 2019 /PRNewswire/ -- First Financial Bancorp. FFBC ("First Financial" or the "Company") announced financial results for the fourth quarter and full year 2018.

For the three months ended December 31, 2018, the Company reported net income of $55.0 million, or $0.56 per diluted common share.  These results compare to net income of $50.7 million, or $0.51 per diluted common share, for the third quarter of 2018 and $24.8 million, or $0.40 per diluted common share, for the fourth quarter of 2017.  Net income was negatively impacted by the recognition of $7.5 million of efficiency and merger related costs, which more than offset $1.6 million of gains from the redemption of off balance sheet securitizations, reducing earnings per diluted common share by $0.05 on a net basis.  For the twelve months ended December 31, 2018, First Financial had earnings per diluted common share of $1.93 compared to $1.56 for the same period in 2017.

Return on average assets for the fourth quarter of 2018 was 1.59% while return on average tangible common equity was 19.63%.  These compare to a return on average assets of 1.45% and return on average tangible common equity of 18.52% in the third quarter of 2018 and a return on average assets of 1.13% and a return on average tangible common equity of 13.85% in the fourth quarter of 2017.

Fourth quarter 2018 highlights include:

  • After adjustments(1) for merger related and nonrecurring items:
    • Net income of $0.61 per diluted common share
    • 1.72% return on average assets
    • 21.29% return on average tangible common equity
  • Net interest margin of 4.21% on a fully tax equivalent basis(1)
    • 9 basis point expansion from the linked quarter driven by higher asset yields and loan fees which outpaced increased funding costs
  • Noninterest expenses of $83.4 million, or $75.9 million as adjusted(1)
    • Efficiency ratio of 53.6% for the fourth quarter; 49.3% as adjusted(1)
  • Stable loan balances
    • Strongest origination quarter of 2018
    • 10% linked quarter increase in loan origination activity offset by elevated ICRE payoffs
  • Annualized quarterly increase in average deposit balances of 16%
    • Deposit growth driven by higher noninterest bearing deposits, money market accounts and brokered CD's
  • Classified assets declined 5%; annualized net charge-offs increased to 29 basis points as a percentage of average loans for the quarter and were 15 basis points for the full year 2018

(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.

Archie Brown, President and Chief Executive Officer, commented, "Fourth quarter results were very strong, and we remain pleased with the operational performance of the Company.  Revenue growth and increased operating leverage led to adjusted(1) earnings per share of $0.61 and substantial returns on assets and average tangible common equity while net interest margin increased 9 basis points."

Mr. Brown continued, "Fourth quarter core banking trends were positive and loan originations were stronger than they have been all year, however elevated payoffs, particularly in ICRE (investment commercial real estate), led to a slight decline in overall loan balances.  In addition to positive loan origination trends, we were particularly pleased with our ability to grow deposits during the the quarter while maintaining a pricing discipline that benefits both our clients and our shareholders."

Mr. Brown concluded, "2018 was a year of significant change for First Financial. We are highly encouraged by the way in which the Company has come together culturally and performed financially.  Successfully completing a transformational merger while producing high level returns reflects the hard work of our associates and dedication to serving the needs of our clients and shareholders.  We remain confident in our ability to sustain these results and our outlook for the future continues to be very optimistic."

First Financial's Board of Directors also approved a 10% increase in the quarterly dividend to $0.22 per share, payable on March 15, 2019 to shareholders of record as of March 1, 2019.

Full detail of the Company's fourth quarter and full year 2018 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 Thursday, January 24, 2019 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 10127430.  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 our Form 10-K for the year ended December 31, 2017, 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 December 31, 2018, the Company had $14.0 billion in assets, $8.8 billion in loans, $10.1 billion in deposits and $2.1 billion in shareholders' equity.  The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management.  These business units provide traditional banking services to business and retail clients.  Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.6 billion in assets under management as of December 31, 2018.  The Company's primary operating markets are located in Ohio, Indiana and Kentucky where it operated 159 banking centers as of December 31, 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,



Twelve months ended,



Dec. 31,



Sep. 30,



Jun. 30,



Mar. 31,



Dec. 31,



Dec. 31,



2018



2018



2018



2018



2017



2018



2017

RESULTS OF OPERATIONS



























Net income

$

55,014





$

50,657





$

36,418





$

30,506





$

24,811





$

172,595





$

96,787



Net earnings per share - basic

$

0.56





$

0.52





$

0.37





$

0.49





$

0.40





$

1.95





$

1.57



Net earnings per share - diluted

$

0.56





$

0.51





$

0.37





$

0.49





$

0.40





$

1.93





$

1.56



Dividends declared per share

$

0.20





$

0.20





$

0.19





$

0.19





$

0.17





$

0.78





$

0.68































KEY FINANCIAL RATIOS



























Return on average assets

1.59

%



1.45

%



1.05

%



1.40

%



1.13

%



1.37

%



1.12

%

Return on average shareholders' equity

10.68

%



9.94

%



7.36

%



13.31

%



10.70

%



9.85

%



10.78

%

Return on average tangible shareholders' equity

19.63

%



18.52

%



13.75

%



17.18

%



13.85

%



17.32

%



14.08

%





























Net interest margin

4.16

%



4.06

%



4.10

%



3.80

%



3.75

%



4.05

%



3.59

%

Net interest margin (fully tax equivalent) (1)

4.21

%



4.12

%



4.15

%



3.84

%



3.82

%



4.10

%



3.66

%





























Ending shareholders' equity as a percent of ending assets

14.86

%



14.70

%



14.46

%



10.56

%



10.46

%



14.86

%



10.46

%

Ending tangible shareholders' equity as a percent of:



























Ending tangible assets

8.79

%



8.53

%



8.30

%



8.41

%



8.30

%



8.79

%



8.30

%

Risk-weighted assets

11.20

%



10.77

%



10.52

%



10.09

%



10.15

%



11.20

%



10.15

%





























Average shareholders' equity as a percent of average assets

14.84

%



14.62

%



14.33

%



10.53

%



10.54

%



13.89

%



10.42

%

Average tangible shareholders' equity as a percent of



























    average tangible assets

8.66

%



8.42

%



8.16

%



8.35

%



8.34

%



8.40

%



8.18

%





























Book value per share

$

21.23





$

20.79





$

20.56





$

15.11





$

14.99





$

21.23





$

14.99



Tangible book value per share

$

11.72





$

11.25





$

11.01





$

11.75





$

11.62





$

11.72





$

11.62































Common equity tier 1 ratio (2)

11.87

%



11.52

%



11.15

%



10.77

%



10.63

%



11.87

%



10.63

%

Tier 1 ratio (2)

12.28

%



11.93

%



11.55

%



10.77

%



10.63

%



12.28

%



10.63

%

Total capital ratio (2)

14.10

%



13.77

%



13.36

%



13.17

%



13.07

%



14.10

%



13.07

%

Leverage ratio (2)

9.71

%



9.41

%



9.06

%



9.00

%



8.84

%



9.71

%



8.84

%





























AVERAGE BALANCE SHEET ITEMS



























Loans (3)

$

8,766,302





$

8,848,710





$

8,933,400





$

6,016,492





$

5,952,290





$

8,150,698





$

5,845,863



FDIC indemnification asset













1,502





7,413





370





9,535



Investment securities

3,204,758





3,168,044





3,157,339





2,042,781





2,020,040





2,897,167





2,001,387



Interest-bearing deposits with other banks

32,013





39,873





29,261





27,073





25,357





32,090





30,933



  Total earning assets

$

12,003,073





$

12,056,627





$

12,120,000





$

8,087,848





$

8,005,100





$

11,080,325





$

7,887,718



Total assets

$

13,768,958





$

13,822,675





$

13,956,360





$

8,830,176





$

8,731,956





$

12,611,438





$

8,611,403



Noninterest-bearing deposits

$

2,476,773





$

2,388,976





$

2,421,230





$

1,570,572





$

1,637,228





$

2,217,349





$

1,540,384



Interest-bearing deposits

7,573,069





7,499,112





7,961,405





5,332,740





5,202,412





7,098,836





5,093,865



  Total deposits

$

10,049,842





$

9,888,088





$

10,382,635





$

6,903,312





$

6,839,640





$

9,316,185





$

6,634,249



Borrowings

$

1,509,642





$

1,748,415





$

1,408,024





$

866,848





$

842,211





$

1,385,994





$

951,159



Shareholders' equity

$

2,042,884





$

2,021,400





$

2,000,093





$

929,474





$

920,194





$

1,752,261





$

897,431































CREDIT QUALITY RATIOS

























Allowance to ending loans

0.64

%



0.65

%



0.61

%



0.89

%



0.90

%



0.64

%



0.90

%

Allowance to nonaccrual loans

79.97

%



136.22

%



133.65

%



179.57

%



224.32

%



79.97

%



224.32

%

Allowance to nonperforming loans

65.13

%



92.08

%



86.80

%



120.24

%



129.77

%



65.13

%



129.77

%

Nonperforming loans to total loans

0.98

%



0.71

%



0.70

%



0.74

%



0.69

%



0.98

%



0.69

%

Nonperforming assets to ending loans, plus OREO

1.00

%



0.73

%



0.72

%



0.76

%



0.74

%



1.00

%



0.74

%

Nonperforming assets to total assets

0.63

%



0.47

%



0.46

%



0.52

%



0.50

%



0.63

%



0.50

%

Classified assets to total assets

0.94

%



1.00

%



1.00

%



0.98

%



0.98

%



0.94

%



0.98

%

Net charge-offs to average loans (annualized)

0.29

%



(0.02)%





0.18

%



0.13

%



0.02

%



0.15

%



0.13

%











































(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) December 31, 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,



Twelve months ended,



Dec. 31,



Dec. 31,



2018



2017



% Change



2018



2017



% Change

Interest income























  Loans and leases, including fees

$

126,580





$

74,347





70.3

%



$

447,187





$

280,111





59.6

%

  Investment securities























     Taxable

22,761





13,212





72.3

%



79,076





50,568





56.4

%

     Tax-exempt

3,896





1,571





148.0

%



13,428





5,918





126.9

%

        Total investment securities interest

26,657





14,783





80.3

%



92,504





56,486





63.8

%

  Other earning assets

192





(592)





132.4

%



691





(3,524)





119.6

%

       Total interest income

153,429





88,538





73.3

%



540,382





333,073





62.2

%

























Interest expense























  Deposits

17,198





9,243





86.1

%



56,962





35,182





61.9

%

  Short-term borrowings

5,186





2,144





141.9

%



18,033





8,193





120.1

%

  Long-term borrowings

5,086





1,537





230.9

%



16,152





6,153





162.5

%

      Total interest expense

27,470





12,924





112.6

%



91,147





49,528





84.0

%

      Net interest income

125,959





75,614





66.6

%



449,235





283,545





58.4

%

  Provision for loan and lease losses

5,310





(205)





N/M



14,586





3,582





307.2

%

      Net interest income after provision for loan and lease losses

120,649





75,819





59.1

%



434,649





279,963





55.3

%

























Noninterest income























  Service charges on deposit accounts

10,185





5,190





96.2

%



35,108





19,775





77.5

%

  Trust and wealth management fees

3,703





3,597





2.9

%



15,082





14,073





7.2

%

  Bankcard income

6,247





3,390





84.3

%



20,245





13,298





52.2

%

  Client derivative fees

1,433





2,047





(30.0)

%



7,682





6,418





19.7

%

  Net gains from sales of loans

1,428





1,171





21.9

%



6,071





5,169





17.5

%

  Net gains (losses) on sale of investment securities

36





19





89.5

%



(161)





1,649





(109.8)

%

  Other

6,472





2,968





118.1

%



19,355





15,760





22.8

%

      Total noninterest income

29,504





18,382





60.5

%



103,382





76,142





35.8

%

























Noninterest expenses























  Salaries and employee benefits

51,505





35,439





45.3

%



188,990





132,560





42.6

%

  Net occupancy

6,322





4,252





48.7

%



24,215





17,397





39.2

%

  Furniture and equipment

3,498





1,969





77.7

%



14,908





8,443





76.6

%

  Data processing

5,599





3,768





48.6

%



28,077





14,022





100.2

%

  Marketing

1,651





1,060





55.8

%



7,598





3,201





137.4

%

  Communication

805





474





69.8

%



3,167





1,819





74.1

%

  Professional services

1,794





9,766





(81.6)

%



12,272





15,023





(18.3)

%

  State intangible tax

1,086





492





120.7

%



4,152





2,655





56.4

%

  FDIC assessments

1,018





943





8.0

%



3,969





3,944





0.6

%

  Loss (gain) - other real estate owned

41





219





(81.3)

%



373





642





(41.9)

%

  Other

10,033





24,516





(59.1)

%



36,089





40,236





(10.3)

%

      Total noninterest expenses

83,352





82,898





0.5

%



323,810





239,942





35.0

%

Income before income taxes

66,801





11,303





491.0

%



214,221





116,163





84.4

%

Income tax expense

11,787





(13,508)





(187.3)

%



41,626





19,376





114.8

%

      Net income

$

55,014





$

24,811





121.7

%



$

172,595





$

96,787





78.3

%

























ADDITIONAL DATA























Net earnings per share - basic

$

0.56





$

0.40









$

1.95





$

1.57







Net earnings per share - diluted

$

0.56





$

0.40









$

1.93





$

1.56







Dividends declared per share

$

0.20





$

0.17









$

0.78





$

0.68































Return on average assets

1.59

%



1.13

%







1.37

%



1.12

%





Return on average shareholders' equity

10.68

%



10.70

%







9.85

%



10.78

%





























Interest income

$

153,429





$

88,538





73.3

%



$

540,382





$

333,073





62.2

%

Tax equivalent adjustment

1,442





1,387





4.0

%



5,147





5,259





(2.1)

%

   Interest income - tax equivalent

154,871





89,925





72.2

%



545,529





338,332





61.2

%

Interest expense

27,470





12,924





112.6

%



91,147





49,528





84.0

%

   Net interest income - tax equivalent

$

127,401





$

77,001





65.5

%



$

454,382





$

288,804





57.3

%

























Net interest margin

4.16

%



3.75

%







4.05

%



3.59

%





Net interest margin (fully tax equivalent) (1)

4.21

%



3.82

%







4.10

%



3.66

%





























Full-time equivalent employees

2,073





1,304











































(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



Fourth



Third



Second



First



Full



% Change



Quarter



Quarter



Quarter



Quarter



Year



Linked Qtr.

Interest income























  Loans and leases, including fees

$

126,580





$

123,397





$

122,290





$

74,920





$

447,187





2.6

%

  Investment securities























     Taxable

22,761





21,801





20,844





13,670





79,076





4.4

%

     Tax-exempt

3,896





3,807





4,068





1,657





13,428





2.3

%

        Total investment securities interest

26,657





25,608





24,912





15,327





92,504





4.1

%

  Other earning assets

192





215





177





107





691





(10.7)

%

       Total interest income

153,429





149,220





147,379





90,354





540,382





2.8

%

























Interest expense























  Deposits

17,198





14,672





14,794





10,298





56,962





17.2

%

  Short-term borrowings

5,186





6,052





4,132





2,663





18,033





(14.3)

%

  Long-term borrowings

5,086





5,011





4,474





1,581





16,152





1.5

%

      Total interest expense

27,470





25,735





23,400





14,542





91,147





6.7

%

      Net interest income

125,959





123,485





123,979





75,812





449,235





2.0

%

  Provision for loan and lease losses

5,310





3,238





3,735





2,303





14,586





64.0

%

      Net interest income after provision for loan and lease losses

120,649





120,247





120,244





73,509





434,649





0.3

%

























Noninterest income























  Service charges on deposit accounts

10,185





10,316





9,568





5,039





35,108





(1.3)

%

  Trust and wealth management fees

3,703





3,728





3,697





3,954





15,082





(0.7)

%

  Bankcard income

6,247





5,261





5,343





3,394





20,245





18.7

%

  Client derivative fees

1,433





3,029





1,463





1,757





7,682





(52.7)

%

  Net gains from sales of loans

1,428





1,739





2,316





588





6,071





(17.9)

%

  Net gains (losses) on sale of investment securities

36





(167)





(30)





0





(161)





121.6

%

  Other

6,472





4,778





5,899





2,206





19,355





35.5

%

      Total noninterest income

29,504





28,684





28,256





16,938





103,382





2.9

%

























Noninterest expenses























  Salaries and employee benefits

51,505





50,852





55,531





31,102





188,990





1.3

%

  Net occupancy

6,322





6,765





6,631





4,497





24,215





(6.5)

%

  Furniture and equipment

3,498





4,072





5,298





2,040





14,908





(14.1)

%

  Data processing

5,599





4,502





14,304





3,672





28,077





24.4

%

  Marketing

1,651





2,502





2,644





801





7,598





(34.0)

%

  Communication

805





785





1,118





459





3,167





2.5

%

  Professional services

1,794





2,621





5,659





2,198





12,272





(31.6)

%

  State intangible tax

1,086





1,223





1,078





765





4,152





(11.2)

%

  FDIC assessments

1,018





734





1,323





894





3,969





38.7

%

  Loss (gain) - other real estate owned

41





538





(283)





77





373





(92.4)

%

  Other

10,033





10,821





9,452





5,783





36,089





(7.3)

%

      Total noninterest expenses

83,352





85,415





102,755





52,288





323,810





(2.4)

%

Income before income taxes

66,801





63,516





45,745





38,159





214,221





5.2

%

Income tax expense

11,787





12,859





9,327





7,653





41,626





(8.3)

%

      Net income

$

55,014





$

50,657





$

36,418





$

30,506





$

172,595





8.6

%

























ADDITIONAL DATA























Net earnings per share - basic

$

0.56





$

0.52





$

0.37





$

0.49





$

1.95







Net earnings per share - diluted

$

0.56





$

0.51





$

0.37





$

0.49





$

1.93







Dividends declared per share

$

0.20





$

0.20





$

0.19





$

0.19





$

0.78































Return on average assets

1.59

%



1.45

%



1.05

%



1.40

%



1.37

%





Return on average shareholders' equity

10.68

%



9.94

%



7.36

%



13.31

%



9.85

%





























Interest income

$

153,429





$

149,220





$

147,379





$

90,354





$

540,382





2.8

%

Tax equivalent adjustment

1,442





1,567





1,420





718





5,147





(8.0)

%

   Interest income - tax equivalent

154,871





150,787





148,799





91,072





545,529





2.7

%

Interest expense

27,470





25,735





23,400





14,542





91,147





6.7

%

   Net interest income - tax equivalent

$

127,401





$

125,052





$

125,399





$

76,530





$

454,382





1.9

%

























Net interest margin

4.16

%



4.06

%



4.10

%



3.80

%



4.05

%





Net interest margin (fully tax equivalent) (1)

4.21

%



4.12

%



4.15

%



3.84

%



4.10

%





























Full-time equivalent employees

2,073





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)































Dec. 31,



Sep. 30,



Jun. 30,



Mar. 31,



Dec. 31,



% Change



% Change



2018



2018



2018



2018



2017



Linked Qtr.



Comparable Qtr.

ASSETS



























     Cash and due from banks

$

236,221





$

193,288





$

216,667





$

116,581





$

150,650





22.2

%



56.8

%

     Interest-bearing deposits with other banks

37,738





28,989





37,915





10,200





33,974





30.2

%



11.1

%

     Investment securities available-for-sale

2,779,255





2,626,726





2,654,909





1,359,381





1,349,408





5.8

%



106.0

%

     Investment securities held-to-maturity

429,328





434,369





443,957





633,722





654,008





(1.2)

%



(34.4)

%

     Other investments

115,660





115,757





95,004





53,070





53,140





(0.1)

%



117.7

%

     Loans held for sale

4,372





13,277





15,821





8,048





11,502





(67.1)

%



(62.0)

%

     Loans and leases



























       Commercial and industrial

2,514,661





2,426,590





2,440,596





1,943,741





1,912,743





3.6

%



31.5

%

       Lease financing

93,415





95,317





96,198





81,617





89,347





(2.0)

%



4.6

%

       Construction real estate

548,935





565,077





555,468





494,665





467,730





(2.9)

%



17.4

%

       Commercial real estate

3,754,681





3,868,143





3,888,993





2,544,051





2,490,091





(2.9)

%



50.8

%

       Residential real estate

955,646





932,962





918,904





468,584





471,391





2.4

%



102.7

%

       Home equity

817,282





816,133





835,031





483,643





493,604





0.1

%



65.6

%

       Installment

93,212





97,413





100,726





39,248





41,586





(4.3)

%



124.1

%

       Credit card

46,382





45,741





48,665





46,472





46,691





1.4

%



(0.7)

%

          Total loans

8,824,214





8,847,376





8,884,581





6,102,021





6,013,183





(0.3)

%



46.7

%

       Less:



























          Allowance for loan and lease losses

56,542





57,715





54,076





54,380





54,021





(2.0)

%



4.7

%

                Net loans

8,767,672





8,789,661





8,830,505





6,047,641





5,959,162





(0.3)

%



47.1

%

     Premises and equipment

215,652





219,940





223,950





127,046





125,036





(1.9)

%



72.5

%

     Goodwill

880,251





881,033





883,025





204,083





204,084





(0.1)

%



331.3

%

     Other intangibles

50,779





53,327





51,631





4,970





5,295





(4.8)

%



859.0

%

     Accrued interest and other assets

469,732





486,300





466,783





333,687





350,664





(3.4)

%



34.0

%

       Total Assets

$

13,986,660





$

13,842,667





$

13,920,167





$

8,898,429





$

8,896,923





1.0

%



57.2

%





























LIABILITIES



























     Deposits



























       Interest-bearing demand

$

2,307,071





$

2,284,271





$

2,440,088





$

1,442,399





$

1,453,463





1.0

%



58.7

%

       Savings

3,167,325





3,134,944





3,087,683





2,450,196





2,462,420





1.0

%



28.6

%

       Time

2,173,564





1,957,574





2,104,044





1,545,273





1,317,105





11.0

%



65.0

%

          Total interest-bearing deposits

7,647,960





7,376,789





7,631,815





5,437,868





5,232,988





3.7

%



46.1

%

       Noninterest-bearing

2,492,434





2,375,845





2,471,932





1,572,636





1,662,058





4.9

%



50.0

%

          Total deposits

10,140,394





9,752,634





10,103,747





7,010,504





6,895,046





4.0

%



47.1

%

     Federal funds purchased and securities sold



























         under agreements to repurchase

183,591





123,452





88,070





56,732





72,265





48.7

%



154.1

%

     FHLB short-term borrowings

857,100





1,170,800





1,100,233





601,600





742,300





(26.8)

%



15.5

%

          Total short-term borrowings

1,040,691





1,294,252





1,188,303





658,332





814,565





(19.6)

%



27.8

%

     Long-term debt

570,739





570,037





469,423





169,695





119,654





0.1

%



377.0

%

          Total borrowed funds

1,611,430





1,864,289





1,657,726





828,027





934,219





(13.6)

%



72.5

%

     Accrued interest and other liabilities

156,587





190,224





145,757





119,913





136,994





(17.7)

%



14.3

%

       Total Liabilities

11,908,411





11,807,147





11,907,230





7,958,444





7,966,259





0.9

%



49.5

%





























SHAREHOLDERS' EQUITY



























     Common stock

1,633,256





1,633,828





1,632,572





571,457





573,109





0.0

%



185.0

%

     Retained earnings

600,014





564,545





533,319





515,498





491,847





6.3

%



22.0

%

     Accumulated other comprehensive loss

(44,408)





(52,897)





(43,008)





(34,683)





(20,390)





(16.0)

%



117.8

%

     Treasury stock, at cost

(110,613)





(109,956)





(109,946)





(112,287)





(113,902)





0.6

%



(2.9)

%

       Total Shareholders' Equity

2,078,249





2,035,520





2,012,937





939,985





930,664





2.1

%



123.3

%

       Total Liabilities and Shareholders' Equity

$

13,986,660





$

13,842,667





$

13,920,167





$

8,898,429





$

8,896,923





1.0

%



57.2

%





























 

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)















Quarterly Averages



Year-to-Date Averages



Dec. 31,



Sep. 30,



Jun. 30,



Mar. 31,



Dec. 31,



December 31,



2018



2018



2018



2018



2017



2018



2017

ASSETS



























     Cash and due from banks

$

213,927





$

199,843





$

224,824





$

116,095





$

121,792





$

188,971





$

116,409



     Federal funds sold

0





0





786





0





0





196





0



     Interest-bearing deposits with other banks

32,013





39,873





28,475





27,073





25,357





31,894





30,933



     Investment securities

3,204,758





3,168,044





3,157,339





2,042,781





2,020,040





2,897,167





2,001,387



     Loans held for sale

10,411





15,270





14,462





9,171





12,572





12,340





10,679



     Loans and leases



























       Commercial and industrial

2,402,296





2,392,229





2,421,244





1,897,726





1,857,546





2,518,333





1,815,925



       Lease financing

94,111





94,030





94,431





86,755





84,635





91,476





86,662



       Construction real estate

567,086





570,125





577,883





483,930





449,195





540,014





429,868



       Commercial real estate

3,793,376





3,887,748





3,923,784





2,495,604





2,487,149





3,310,697





2,448,570



       Residential real estate

941,047





918,361





929,667





468,855





477,454





809,114





488,718



       Home equity

813,779





822,834





825,236





487,073





494,804





724,926





472,860



       Installment

95,779





99,907





99,896





40,409





42,283





95,847





47,520



       Credit card

48,417





48,206





46,797





46,969





46,652





47,951





45,061



          Total loans

8,755,891





8,833,440





8,918,938





6,007,321





5,939,718





8,138,358





5,835,184



       Less:



























          Allowance for loan and lease losses

58,216





55,877





55,318





55,016





55,279





56,115





56,599



                Net loans

8,697,675





8,777,563





8,863,620





5,952,305





5,884,439





8,082,243





5,778,585



     Premises and equipment

218,430





222,718





230,475





126,016





126,310





199,727





129,702



     Goodwill

878,669





882,917





883,179





204,083





204,084





714,528





204,084



     Other intangibles

52,291





53,013





54,278





5,161





5,487





41,347





5,971



     Accrued interest and other assets

460,784





463,434





498,922





347,491





331,875





443,025





333,653



       Total Assets

$

13,768,958





$

13,822,675





$

13,956,360





$

8,830,176





$

8,731,956





$

12,611,438





$

8,611,403































LIABILITIES



























     Deposits



























       Interest-bearing demand

$

2,342,528





$

2,334,305





$

2,573,150





$

1,415,603





$

1,502,245





$

2,169,396





$

1,491,114



       Savings

3,156,789





3,149,871





3,196,059





2,450,697





2,518,771





2,990,731





2,412,788



       Time

2,073,752





2,014,936





2,192,196





1,466,440





1,181,396





1,938,709





1,189,963



          Total interest-bearing deposits

7,573,069





7,499,112





7,961,405





5,332,740





5,202,412





7,098,836





5,093,865



       Noninterest-bearing

2,476,773





2,388,976





2,421,230





1,570,572





1,637,228





2,217,349





1,540,384



          Total deposits

10,049,842





9,888,088





10,382,635





6,903,312





6,839,640





9,316,185





6,634,249



     Federal funds purchased and securities sold



























          under agreements to repurchase

65,805





112,308





97,708





72,865





57,131





87,221





69,766



     FHLB short-term borrowings

873,533





1,076,106





818,909





667,641





660,859





860,206





760,599



          Total short-term borrowings

939,338





1,188,414





916,617





740,506





717,990





947,427





830,365



     Long-term debt

570,304





560,001





491,407





126,342





124,221





438,567





120,794



       Total borrowed funds

1,509,642





1,748,415





1,408,024





866,848





842,211





1,385,994





951,159



     Accrued interest and other liabilities

166,590





164,772





165,608





130,542





129,911





156,998





128,564



       Total Liabilities

11,726,074





11,801,275





11,956,267





7,900,702





7,811,762





10,859,177





7,713,972































SHAREHOLDERS' EQUITY



























     Common stock

1,632,361





1,633,129





1,632,569





572,915





572,392





1,371,373





570,336



     Retained earnings

576,145





542,835





517,548





503,140





483,554





535,139





463,358



     Accumulated other comprehensive loss

(55,161)





(44,505)





(39,117)





(33,285)





(21,740)





(43,081)





(23,141)



     Treasury stock, at cost

(110,461)





(110,059)





(110,907)





(113,296)





(114,012)





(111,170)





(113,122)



       Total Shareholders' Equity

2,042,884





2,021,400





2,000,093





929,474





920,194





1,752,261





897,431



       Total Liabilities and Shareholders' Equity

$

13,768,958





$

13,822,675





$

13,956,360





$

8,830,176





$

8,731,956





$

12,611,438





$

8,611,403































 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)















 Quarterly Averages



Year-to-Date Averages





December 31, 2018



September 30, 2018



December 31, 2017



December 31, 2018



December 31, 2017





Balance



Yield



Balance



Yield



Balance



Yield



Balance



Yield



Balance



Yield

Earning assets









































    Investments:









































      Investment securities



$

3,204,758





3.30

%



$

3,168,044





3.21

%



$

2,020,040





2.90

%



$

2,897,167





3.19

%



$

2,001,387





2.82

%

      Interest-bearing deposits with other banks



32,013





2.38

%



39,873





2.14

%



25,357





1.41

%



32,090





2.15

%



30,933





1.12

%

    Gross loans (1)



8,766,302





5.73

%



8,848,710





5.53

%



5,959,703





4.90

%



8,151,068





5.49

%



5,855,398





4.72

%

       Total earning assets



12,003,073





5.07

%



12,056,627





4.91

%



8,005,100





4.39

%



11,080,325





4.88

%



7,887,718





4.22

%











































Nonearning assets









































    Allowance for loan and lease losses



(58,216)









(55,877)









(55,279)









(56,115)









(56,599)







    Cash and due from banks



213,927









199,843









121,792









188,971









116,409







    Accrued interest and other assets



1,610,174









1,622,082









660,343









1,398,257









663,875







       Total assets



$

13,768,958









$

13,822,675









$

8,731,956









$

12,611,438









$

8,611,403

















































Interest-bearing liabilities









































    Deposits:









































      Interest-bearing demand



$

2,342,528





0.48

%



$

2,334,305





0.34

%



$

1,502,245





0.34

%



$

2,169,396





0.39

%



$

1,491,114





0.28

%

      Savings



3,156,789





0.66

%



3,149,871





0.59

%



2,518,771





0.63

%



2,990,731





0.60

%



2,412,788





0.66

%

      Time



2,073,752





1.75

%



2,014,936





1.58

%



1,181,396





1.33

%



1,938,709





1.57

%



1,189,963





1.26

%

    Total interest-bearing deposits



7,573,069





0.90

%



7,499,112





0.78

%



5,202,412





0.70

%



7,098,836





0.80

%



5,093,865





0.69

%

    Borrowed funds









































      Short-term borrowings



939,338





2.19

%



1,188,414





2.02

%



717,990





1.18

%



947,427





1.90

%



830,365





0.99

%

      Long-term debt



570,304





3.54

%



560,001





3.55

%



124,221





4.91

%



438,567





3.68

%



120,794





5.09

%

        Total borrowed funds



1,509,642





2.70

%



1,748,415





2.51

%



842,211





1.73

%



1,385,994





2.47

%



951,159





1.51

%

       Total interest-bearing liabilities



9,082,711





1.20

%



9,247,527





1.10

%



6,044,623





0.85

%



8,484,830





1.07

%



6,045,024





0.82

%











































Noninterest-bearing liabilities









































    Noninterest-bearing demand deposits



2,476,773









2,388,976









1,637,228









2,217,349









1,540,384







    Other liabilities



166,590









164,772









129,911









156,998









128,564







    Shareholders' equity



2,042,884









2,021,400









920,194









1,752,261









897,431







       Total liabilities & shareholders' equity



$

13,768,958









$

13,822,675









$

8,731,956









$

12,611,438









$

8,611,403

















































Net interest income



$

125,959









$

123,485









$

75,614









$

449,235









$

283,545







Net interest spread







3.87

%







3.81

%







3.54

%







3.81

%







3.40

%

Net interest margin







4.16

%







4.06

%







3.75

%







4.05

%







3.59

%











































Tax equivalent adjustment







0.05

%







0.06

%







0.07

%







0.05

%







0.07

%

Net interest margin (fully tax equivalent)







4.21

%







4.12

%







3.82

%







4.10

%







3.66

%





















































































(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



$

744





$

305





$

1,049





$

2,020





$

9,854





$

11,874





$

7,417





$

28,601





$

36,018



    Interest-bearing deposits with other banks



24





(47)





(23)





62





40





102





319





25





344



    Gross loans (2)



4,373





(1,190)





3,183





12,389





40,526





52,915





45,001





125,946





170,947



       Total earning assets



5,141





(932)





4,209





14,471





50,420





64,891





52,737





154,572





207,309









































Interest-bearing liabilities





































    Total interest-bearing deposits



$

2,358





$

168





$

2,526





$

2,571





$

5,384





$

7,955





$

5,692





$

16,088





$

21,780



    Borrowed funds





































    Short-term borrowings



509





(1,375)





(866)





1,820





1,222





3,042





7,612





2,228





9,840



    Long-term debt



(17)





92





75





(429)





3,978





3,549





(1,704)





11,703





9,999



       Total borrowed funds



492





(1,283)





(791)





1,391





5,200





6,591





5,908





13,931





19,839



       Total interest-bearing liabilities



2,850





(1,115)





1,735





3,962





10,584





14,546





11,600





30,019





41,619



          Net interest income (1)



$

2,291





$

183





$

2,474





$

10,509





$

39,836





$

50,345





$

41,137





$

124,553





$

165,690















































































(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)



























































Dec. 31,



Sep. 30,



Jun. 30,



Mar. 31,



Dec. 31,



Full Year



Full Year



2018



2018



2018



2018



2017



2018



2017

ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY





















Balance at beginning of period

$

57,715





$

54,076





$

54,380





$

54,021





$

54,534





$

54,021





$

57,961



  Provision for loan and lease losses

5,310





3,238





3,735





2,303





(205)





14,586





3,582



  Gross charge-offs



























    Commercial and industrial

6,060





232





4,356





885





1,264





11,533





10,194



    Construction real estate

0





0





0





0





1





0





1



    Commercial real estate

1,679





902





78





2,176





10





4,835





1,038



    Residential real estate

80





145





101





96





128





422





435



    Home equity

747





351





385





242





278





1,725





913



    Installment

158





43





218





16





26





435





225



    Credit card

392





390





684





254





209





1,720





857



      Total gross charge-offs

9,116





2,063





5,822





3,669





1,916





20,670





13,663



  Recoveries



























    Commercial and industrial

485





627





518





436





370





2,066





1,650



    Lease financing

0





0





1





0





0





1





1



    Construction real estate

0





146





0





0





0





146





89



    Commercial real estate

1,681





786





887





752





480





4,106





2,719



    Residential real estate

44





71





70





26





77





211





215



    Home equity

274





419





187





429





589





1,309





1,027



    Installment

94





351





82





48





46





575





234



    Credit card

55





64





38





34





46





191





206



      Total recoveries

2,633





2,464





1,783





1,725





1,608





8,605





6,141



  Total net charge-offs

6,483





(401)





4,039





1,944





308





12,065





7,522



Ending allowance for loan and lease losses

$

56,542





$

57,715





$

54,076





$

54,380





$

54,021





$

56,542





$

54,021































NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)





















  Commercial and industrial

0.92

%



(0.07)%





0.64

%



0.10

%



0.19

%



0.38

%



0.47

%

  Lease financing

0.00

%



0.00

%



0.00

%



0.00

%



0.00

%



0.00

%



0.00

%

  Construction real estate

0.00

%



(0.10)%





0.00

%



0.00

%



0.00

%



(0.03)%





(0.02)

%

  Commercial real estate

0.00

%



0.01

%



(0.08)%





0.23

%



(0.07)%





0.02

%



(0.07)

%

  Residential real estate

0.02

%



0.03

%



0.01

%



0.06

%



0.04

%



0.03

%



0.05

%

  Home equity

0.23

%



(0.03)%





0.10

%



(0.16)%





(0.25)%





0.06

%



(0.02)

%

  Installment

0.27

%



(1.22)%





0.55

%



(0.32)%





(0.19)%





(0.15)

%



(0.02)

%

  Credit card

2.76

%



2.68

%



5.54

%



1.90

%



1.39

%



3.19

%



1.44

%

     Total net charge-offs

0.29

%



(0.02)%





0.18

%



0.13

%



0.02

%



0.15

%



0.13

%





























COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS





  Nonaccrual loans (1)



























    Commercial and industrial

$

30,925





$

4,310





$

3,448





$

6,275





$

5,229





$

30,925





$

5,229



    Lease financing

22





0





0





0





82





22





82



    Construction real estate

9





10





24





26





29





9





29



    Commercial real estate

20,500





20,338





21,593





16,878





10,616





20,500





10,616



    Residential real estate

13,495





11,365





9,278





3,324





4,140





13,495





4,140



    Home equity

5,580





6,018





5,820





3,484





3,743





5,580





3,743



    Installment

169





327





299





296





243





169





243



      Nonaccrual loans

70,700





42,368





40,462





30,283





24,082





70,700





24,082



  Accruing troubled debt restructurings (TDRs)

16,109





20,313





21,839





14,943





17,545





16,109





17,545



     Total nonperforming loans

86,809





62,681





62,301





45,226





41,627





86,809





41,627



  Other real estate owned (OREO)

1,401





1,918





1,853





1,065





2,781





1,401





2,781



     Total nonperforming assets

88,210





64,599





64,154





46,291





44,408





88,210





44,408



  Accruing loans past due 90 days or more

63





144





327





529





61





63





61



     Total underperforming assets

$

88,273





$

64,743





$

64,481





$

46,820





$

44,469





$

88,273





$

44,469



Total classified assets

$

131,668





$

138,868





$

139,317





$

87,577





$

87,293





$

131,668





$

87,293































CREDIT QUALITY RATIOS





















Allowance for loan and lease losses to



























     Nonaccrual loans

79.97

%



136.22

%



133.65

%



179.57

%



224.32

%



79.97

%



224.32

%

     Nonperforming loans

65.13

%



92.08

%



86.80

%



120.24

%



129.77

%



65.13

%



129.77

%

     Total ending loans

0.64

%



0.65

%



0.61

%



0.89

%



0.90

%



0.64

%



0.90

%

Nonperforming loans to total loans

0.98

%



0.71

%



0.70

%



0.74

%



0.69

%



0.98

%



0.69

%

Nonperforming assets to



























     Ending loans, plus OREO

1.00

%



0.73

%



0.72

%



0.76

%



0.74

%



1.00

%



0.74

%

     Total assets

0.63

%



0.47

%



0.46

%



0.52

%



0.50

%



0.63

%



0.50

%

Nonperforming assets, excluding accruing TDRs to



























     Ending loans, plus OREO

0.82

%



0.50

%



0.48

%



0.51

%



0.45

%



0.82

%



0.45

%

     Total assets

0.52

%



0.32

%



0.30

%



0.35

%



0.30

%



0.52

%



0.30

%

Classified assets to total assets

0.94

%



1.00

%



1.00

%



0.98

%



0.98

%



0.94

%



0.98

%





























(1)  Nonaccrual loans include nonaccrual TDRs of $22.4 million, $4.7 million, $5.9 million, $6.0 million, and $6.4 million, as of December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively.











 

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)























Twelve months ended,



Dec. 31,



Sep. 30,



June 30,



Mar. 31,



Dec. 31,



Dec. 31,



Dec. 31,



2018



2018



2018



2018



2017



2018



2017

PER COMMON SHARE



























Market Price



























  High

$

29.58





$

32.35





$

33.55





$

29.35





$

29.15





$

33.55





$

29.15



  Low

$

22.40





$

29.40





$

28.10





$

26.40





$

25.30





$

22.40





$

23.10



  Close

$

23.72





$

29.70





$

30.65





$

29.35





$

26.35





$

23.72





$

26.35































Average shares outstanding - basic

97,424,839





97,411,201





97,347,533





61,654,686





61,595,629





88,582,090





61,529,460



Average shares outstanding - diluted

98,468,237





98,484,228





98,432,072





62,180,744





62,131,840





89,614,205





62,171,590



Ending shares outstanding

97,894,286





97,914,526





97,904,897





62,213,823





62,069,087





97,894,286





62,069,087































Total shareholders' equity

$

2,078,249





$

2,035,520





$

2,012,937





$

939,985





$

930,664





$

2,078,249





$

930,664































REGULATORY CAPITAL

Preliminary



















Preliminary





Common equity tier 1 capital

$

1,215,613





$

1,177,630





$

1,142,718





$

779,491





$

755,735





$

1,215,613





$

755,735



Common equity tier 1 capital ratio

11.87

%



11.52

%



11.15

%



10.77

%



10.63

%



11.87

%



10.63

%

Tier 1 capital

$

1,257,366





$

1,219,383





$

1,184,471





$

779,595





$

755,839





$

1,257,366





$

755,839



Tier 1 ratio

12.28

%



11.93

%



11.55

%



10.77

%



10.63

%



12.28

%



10.63

%

Total capital

$

1,444,146





$

1,407,252





$

1,369,231





$

953,243





$

929,148





$

1,444,146





$

929,148



Total capital ratio

14.10

%



13.77

%



13.36

%



13.17

%



13.07

%



14.10

%



13.07

%

Total capital in excess of minimum



























  requirement

$

432,832





$

397,783





$

356,930





$

238,221





$

271,600





$

432,832





$

271,600



Total risk-weighted assets

$

10,241,159





$

10,222,466





$

10,251,147





$

7,240,731





$

7,108,629





$

10,241,159





$

7,108,629



Leverage ratio

9.71

%



9.41

%



9.06

%



9.00

%



8.84

%



9.71

%



8.84

%





























OTHER CAPITAL RATIOS



























Ending shareholders' equity to ending assets

14.86

%



14.70

%



14.46

%



10.56

%



10.46

%



14.86

%



10.46

%

Ending tangible shareholders' equity to ending tangible assets

8.79

%



8.53

%



8.30

%



8.41

%



8.30

%



8.79

%



8.30

%

Average shareholders' equity to average assets

14.84

%



14.62

%



14.33

%



10.53

%



10.54

%



13.89

%



10.42

%

Average tangible shareholders' equity to average tangible assets

8.66

%



8.42

%



8.16

%



8.35

%



8.34

%



8.40

%



8.18

%





























 

Cision View original content:http://www.prnewswire.com/news-releases/first-financial-bancorp-announces-fourth-quarter-and-full-year-2018-results-and-10-dividend-increase-300783170.html

SOURCE First Financial Bancorp.

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