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First Financial Bancorp. Announces Third Quarter Results

CINCINNATI, Oct. 19, 2017 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the third quarter 2017. For the three months ended September 30, 2017, the Company reported net income of $24.8 million, or $0.40 per diluted common share. These results compare to net income of $22.7 million, or $0.37 per diluted common share, for the second quarter of 2017 and $22.9 million, or $0.37 per diluted common share, for the third quarter of 2016. For the nine months ended September 30, 2017, First Financial had earnings per diluted common share of $1.16 compared to $1.05 for the same period in 2016.

Return on average assets for the third quarter of 2017 was 1.13% while return on average tangible common equity was 14.10%. These compare to a return on average assets of 1.06% and return on average tangible common equity of 13.42% in the second quarter of 2017 and a return on average assets of 1.09% and a return on average tangible common equity of 14.08% in the third quarter of 2016.

Third quarter 2017 highlights include:

  • Net income of $0.40 per diluted common share on a GAAP basis; $0.39 per diluted common on an adjusted basis as detailed on slide 6 of the accompanying slide presentation
  • Net income increased $2.1 million, or 9.2%, compared to the linked quarter; $6.7 million, or 10.3%, year to date
  • Net interest margin of 3.50% on a GAAP basis; margin increased 1 basis point to 3.57% on a fully tax equivalent basis
  • Noninterest income increased $5.5 million, or 31.4%, compared to the linked quarter
    • Includes a $5.8 million gain from the early redemption of certain off balance sheet securitizations associated with the 2009 FDIC-assisted transactions
  • Noninterest expense increased $2.9 million, or 5.6%, compared to the linked quarter
    • Includes $3.8 million of severance costs related to efficiency efforts as well as $0.8 million of merger-related expenses
  • Period-end loans increased $103.3 million, or 7.0% on an annualized basis
  • Average deposits increased $110.2 million, or 6.7% on an annualized basis
  • Solid credit performance with lower classified and nonperforming asset balances

Claude Davis, Chief Executive Officer, commented, "Strong earnings, solid loan growth and a stable credit environment highlighted the third quarter, which was our 108th consecutive quarter of profitability. We are pleased with our performance improvement efforts during the quarter and believe we are well-positioned to realize the full impact of these efforts during the fourth quarter."

"We remain excited about our pending merger with MainSource Financial Group. Initial regulatory applications have been filed, integration planning efforts are well under way and we have made several key determinations in relation to our post-merger organizational structure and technology platform. While we continue preparing for a successful merger, our focus remains on executing our premier business bank strategy and delivering exceptional service to our clients and shareholders."

This release announcing our third quarter 2017 financial results includes an accompanying slide presentation, which management intends to refer to during the conference call on Friday, October 20, 2017.

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 20, 2017 at 8:30 a.m. Eastern Standard 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 10104461. 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 and any non-GAAP reconciliations related to this release is available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of September 30, 2017, the Company had $8.8 billion in assets, $6.0 billion in loans, $6.7 billion in deposits and $915.0 million in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its four lines of business: Commercial and Private Banking, Retail Banking, Investment Commercial Real Estate and Commercial Finance. These business units provide traditional banking services to business and retail clients. Commercial and Private Banking includes First Financial Wealth Management, which 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 September 30, 2017. The Company's primary operating markets are located in Ohio, Indiana and Kentucky where it operates 102 banking centers, 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.

Important Additional Information about the Merger

The Company has filed a registration statement on Form S-4 with the SEC (filed on September 22, 2017 and amended on October 17, 2017), which includes a joint proxy statement of the Company and MainSource Financial and a prospectus of the Company, and each party will file other documents regarding the proposed transaction with the SEC. A definitive joint proxy statement/prospectus will also be sent to the Company and MainSource Financial shareholders seeking required shareholder approvals.

Before making any voting or investment decision, investors and security holders of the Company and MainSource Financial are urged to carefully read the entire registration statement and joint proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction.

The documents filed by the Company and MainSource Financial with the SEC may be obtained free of charge at the SEC's website at www.sec.gov. In addition, the documents filed by the Company may be obtained free of charge at the Company's website at http://www.bankatfirst.com and the documents filed by MainSource Financial may be obtained free of charge at MainSource Financial' s website at https://www.mainsourcebank.com under the tab "Investor Relations." Alternatively, these documents, when available, can be obtained free of charge from the Company upon written request to First Financial Bancorp, Attention: Shannon M. Kuhl, Chief Legal Officer and Corporate Secretary, 255 E. Fifth Street, Suite 2900, Cincinnati, Ohio 45202 or by calling (877) 322-9530 or from MainSource Financial upon written request to MainSource Financial Group, Inc., 2105 North State Road 3 Bypass, Greensburg, Indiana 47240, Attn: James M. Anderson, Chief Financial Officer, or by calling (812) 663-6734.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. This communication is also not a solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise. No offer of securities or solicitation will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The communication is not a substitute for the joint proxy statement/prospectus that the Company and MainSource Financial will file with the SEC.

Cautionary Statements Regarding Forward-Looking Information

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. Such statements include, but are not limited to, certain plans, expectations, goals, projections and benefits relating to the transaction between the Company and MainSource Financial, which are subject to numerous assumptions, risks and uncertainties. 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. Please refer to each of the Company's and MainSource Financial' s Annual Report on Form 10-K for the year ended December 31, 2016, as well as their other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed 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 the 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. In addition to factors previously disclosed in reports filed by the Company and MainSource Financial with the SEC, risks and uncertainties for the Company, MainSource Financial and the combined company include, but are not limited to: the possibility that any of the anticipated benefits of the proposed Merger will not be realized or will not be realized within the expected time period; the risk that integration of MainSource Financial's operations with those of the Company will be materially delayed or will be more costly or difficult than expected; the inability to close the Merger in a timely manner; the inability to complete the Merger due to the failure of the Company's or MainSource Financial's shareholders to adopt the Merger Agreement; diversion of management's attention from ongoing business operations and opportunities; the failure to satisfy other conditions to completion of the , including receipt of required regulatory and other approvals; the failure of the proposed Merger to close for any other reason; the challenges of integrating and retaining key employees; the effect of the announcement of the Merger on the Company's, MainSource Financial's or the combined company's respective customer relationships and operating results; the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and general competitive, economic, political and market conditions and fluctuations. 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, neither the Company nor MainSource Financial assumes any obligation to update any forward-looking statement.

Proxy Solicitation

The Company, MainSource Financial, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from the Company's and MainSource Financial's shareholders in favor of the approval of the Merger. Information about the directors and executive officers of the Company and their ownership of the Company's common stock is set forth in the proxy statement for the Company's 2017 annual meeting of shareholders, as previously filed with the SEC on April 13, 2017, and the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as previously filed with the SEC on February 24, 2017. Information about the directors and executive officers of MainSource Financial and their ownership of MainSource Financial common stock is set forth in the proxy statement for MainSource Financial' s 2017 annual meeting of shareholders, as previously filed with the SEC on March 24, 2017. Shareholders may obtain additional information regarding the interests of such participants by reading the registration statement and the proxy statement/prospectus when they become available.

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,


2017


2017


2017


2016


2016


2017


2016

RESULTS OF OPERATIONS














Net income

$

24,826



$

22,736



$

24,414



$

23,294



$

22,850



$

71,976



$

65,232


Net earnings per share - basic

$

0.40



$

0.37



$

0.40



$

0.38



$

0.37



$

1.17



$

1.07


Net earnings per share - diluted

$

0.40



$

0.37



$

0.39



$

0.38



$

0.37



$

1.16



$

1.05


Dividends declared per share

$

0.17



$

0.17



$

0.17



$

0.16



$

0.16



$

0.51



$

0.48
















KEY FINANCIAL RATIOS














Return on average assets

1.13

%


1.06

%


1.18

%


1.11

%


1.09

%


1.12

%


1.06

%

Return on average shareholders' equity

10.85

%


10.25

%


11.36

%


10.73

%


10.62

%


10.82

%


10.39

%

Return on average tangible shareholders' equity

14.10

%


13.42

%


14.98

%


14.19

%


14.08

%


14.15

%


13.88

%















Net interest margin

3.50

%


3.50

%


3.63

%


3.66

%


3.61

%


3.54

%


3.61

%

Net interest margin (fully tax equivalent) (1)

3.57

%


3.56

%


3.70

%


3.71

%


3.66

%


3.61

%


3.67

%















Ending shareholders' equity as a percent of ending assets

10.44

%


10.31

%


10.32

%


10.25

%


10.29

%


10.44

%


10.29

%

Ending tangible shareholders' equity as a percent of:














Ending tangible assets

8.25

%


8.09

%


8.05

%


7.96

%


7.97

%


8.25

%


7.97

%

Risk-weighted assets

9.95

%


9.92

%


9.90

%


9.73

%


9.63

%


9.95

%


9.63

%















Average shareholders' equity as a percent of average assets

10.42

%


10.36

%


10.36

%


10.33

%


10.29

%


10.38

%


10.21

%

Average tangible shareholders' equity as a percent of average tangible assets

8.21

%


8.12

%


8.06

%


8.01

%


7.96

%


8.13

%


7.84

%















Book value per share

$

14.74



$

14.45



$

14.16



$

13.96



$

13.90



$

14.74



$

13.90


Tangible book value per share

$

11.36



$

11.07



$

10.78



$

10.56



$

10.50



$

11.36



$

10.50
















Common equity tier 1 ratio (2)

10.53

%


10.54

%


10.59

%


10.46

%


10.20

%


10.53

%


10.20

%

Tier 1 ratio (2)

10.53

%


10.54

%


10.59

%


10.46

%


10.20

%


10.53

%


10.20

%

Total capital ratio (2)

12.98

%


13.05

%


13.19

%


13.10

%


12.82

%


12.98

%


12.82

%

Leverage ratio (2)

8.74

%


8.69

%


8.69

%


8.60

%


8.45

%


8.74

%


8.45

%















AVERAGE BALANCE SHEET ITEMS














Loans (3)

$

5,902,053



$

5,789,610



$

5,736,513



$

5,780,865



$

5,743,773



$

5,809,998



$

5,577,497


FDIC indemnification asset

8,932



10,327



11,520



12,782



14,031



10,250



15,519


Investment securities

2,041,785



2,035,334



1,906,699



1,816,944



1,811,240



1,995,101



1,872,958


Interest-bearing deposits with other banks

37,199



20,293



40,985



19,557



22,116



32,812



22,696


Total earning assets

$

7,989,969



$

7,855,564



$

7,695,717



$

7,630,148



$

7,591,160



$

7,848,161



$

7,488,670


Total assets

$

8,716,917



$

8,582,961



$

8,409,071



$

8,359,912



$

8,322,156



$

8,570,777



$

8,215,370


Noninterest-bearing deposits

$

1,510,032



$

1,513,995



$

1,499,097



$

1,544,598



$

1,453,842



$

1,507,748



$

1,427,323


Interest-bearing deposits

5,170,365



5,056,223



4,942,766



5,012,613



4,746,887



5,057,285



4,787,710


Total deposits

$

6,680,397



$

6,570,218



$

6,441,863



$

6,557,211



$

6,200,729



$

6,565,033



$

6,215,033


Borrowings

$

999,818



$

995,132



$

968,326



$

815,928



$

1,153,042



$

987,874



$

1,061,911


Shareholders' equity

$

908,057



$

889,604



$

871,215



$

863,509



$

856,296



$

889,760



$

838,497
















CREDIT QUALITY RATIOS













Allowance to ending loans

0.91

%


0.93

%


0.98

%


1.01

%


1.00

%


0.91

%


1.00

%

Allowance to nonaccrual loans

181.07

%


150.05

%


169.85

%


326.91

%


314.84

%


181.07

%


314.84

%

Allowance to nonperforming loans

109.48

%


96.77

%


89.25

%


120.83

%


114.17

%


109.48

%


114.17

%

Nonperforming loans to total loans

0.83

%


0.97

%


1.10

%


0.83

%


0.87

%


0.83

%


0.87

%

Nonperforming assets to ending loans, plus OREO

0.89

%


1.07

%


1.19

%


0.94

%


1.00

%


0.89

%


1.00

%

Nonperforming assets to total assets

0.60

%


0.72

%


0.80

%


0.64

%


0.69

%


0.60

%


0.69

%

Classified assets to total assets

1.08

%


1.13

%


1.34

%


1.48

%


1.70

%


1.08

%


1.70

%

Net charge-offs to average loans (annualized)

0.22

%


0.13

%


0.14

%


0.17

%


0.05

%


0.17

%


0.08

%

(1)

The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

(2)

September 30, 2017 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,


2017


2016


% Change


2017


2016


% Change

Interest income












Loans and leases, including fees

$

71,148



$

66,997



6.2

%


$

205,764



$

194,820



5.6

%

Investment securities












Taxable

13,150



10,326



27.3

%


37,356



32,405



15.3

%

Tax-exempt

1,537



1,083



41.9

%


4,347



3,401



27.8

%

Total investment securities interest

14,687



11,409



28.7

%


41,703



35,806



16.5

%

Other earning assets

(917)



(1,081)



15.2

%


(2,932)



(3,323)



11.8

%

Total interest income

84,918



77,325



9.8

%


244,535



227,303



7.6

%













Interest expense












Deposits

10,335



5,600



84.6

%


25,939



16,587



56.4

%

Short-term borrowings

2,566



1,368



87.6

%


6,049



3,591



68.4

%

Long-term borrowings

1,538



1,539



(0.1)

%


4,616



4,620



(0.1)

%

Total interest expense

14,439



8,507



69.7

%


36,604



24,798



47.6

%

Net interest income

70,479



68,818



2.4

%


207,931



202,505



2.7

%

Provision for loan and lease losses

2,953



1,687



75.0

%


3,787



7,379



(48.7)

%

Net interest income after provision for loan and lease losses

67,526



67,131



0.6

%


204,144



195,126



4.6

%













Noninterest income












Service charges on deposit accounts

5,169



5,056



2.2

%


14,585



13,892



5.0

%

Trust and wealth management fees

3,324



3,236



2.7

%


10,476



9,959



5.2

%

Bankcard income

3,272



2,984



9.7

%


9,908



8,996



10.1

%

Client derivative fees

1,779



1,210



47.0

%


4,371



4,104



6.5

%

Net gains from sales of loans

1,455



2,066



(29.6)

%


3,998



5,093



(21.5)

%

Net gains on sale of investment securities

276



398



(30.7)

%


1,630



234



N/M

Other

7,667



1,999



N/M


12,792



10,377



23.3

%

Total noninterest income

22,942



16,949



35.4

%


57,760



52,655



9.7

%













Noninterest expenses












Salaries and employee benefits

33,827



32,093



5.4

%


97,121



91,234



6.5

%

Net occupancy

4,328



4,543



(4.7)

%


13,145



13,991



(6.0)

%

Furniture and equipment

2,161



2,139



1.0

%


6,474



6,482



(0.1)

%

Data processing

3,455



2,828



22.2

%


10,254



8,311



23.4

%

Marketing

649



641



1.2

%


2,141



2,507



(14.6)

%

Communication

430



527



(18.4)

%


1,345



1,485



(9.4)

%

Professional services

2,030



1,460



39.0

%


5,257



4,572



15.0

%

State intangible tax

721



639



12.8

%


2,163



1,917



12.8

%

FDIC assessments

1,051



1,048



0.3

%


3,001



3,292



(8.8)

%

Loss (gain) - other real estate owned

237



(112)



N/M


423



(259)



N/M

Other

5,554



5,299



4.8

%


15,720



17,706



(11.2)

%

Total noninterest expenses

54,443



51,105



6.5

%


157,044



151,238



3.8

%

Income before income taxes

36,025



32,975



9.2

%


104,860



96,543



8.6

%

Income tax expense

11,199



10,125



10.6

%


32,884



31,311



5.0

%

Net income

$

24,826



$

22,850



8.6

%


$

71,976



$

65,232



10.3

%













ADDITIONAL DATA












Net earnings per share - basic

$

0.40



$

0.37





$

1.17



$

1.07




Net earnings per share - diluted

$

0.40



$

0.37





$

1.16



$

1.05




Dividends declared per share

$

0.17



$

0.16





$

0.51



$

0.48
















Return on average assets

1.13

%


1.09

%




1.12

%


1.06

%



Return on average shareholders' equity

10.85

%


10.62

%




10.82

%


10.39

%















Interest income

$

84,918



$

77,325



9.8

%


$

244,535



$

227,303



7.6

%

Tax equivalent adjustment

1,353



1,028



31.6

%


3,872



3,138



23.4

%

Interest income - tax equivalent

86,271



78,353



10.1

%


248,407



230,441



7.8

%

Interest expense

14,439



8,507



69.7

%


36,604



24,798



47.6

%

Net interest income - tax equivalent

$

71,832



$

69,846



2.8

%


$

211,803



$

205,643



3.0

%













Net interest margin

3.50

%


3.61

%




3.54

%


3.61

%



Net interest margin (fully tax equivalent) (1)

3.57

%


3.66

%




3.61

%


3.67

%















Full-time equivalent employees

1,363



1,402






















(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.


N/M = Not meaningful.

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)












2017


Third


Second


First


Full


% Change


Quarter


Quarter


Quarter


Year


Linked Qtr.

Interest income










Loans and leases, including fees

$

71,148



$

67,748



$

66,868



$

205,764



5.0

%

Investment securities










Taxable

13,150



12,598



11,608



37,356



4.4

%

Tax-exempt

1,537



1,457



1,353



4,347



5.5

%

Total investment securities interest

14,687



14,055



12,961



41,703



4.5

%

Other earning assets

(917)



(1,014)



(1,001)



(2,932)



9.6

%

Total interest income

84,918



80,789



78,828



244,535



5.1

%











Interest expense










Deposits

10,335



8,679



6,925



25,939



19.1

%

Short-term borrowings

2,566



2,051



1,432



6,049



25.1

%

Long-term borrowings

1,538



1,539



1,539



4,616



(0.1)

%

Total interest expense

14,439



12,269



9,896



36,604



17.7

%

Net interest income

70,479



68,520



68,932



207,931



2.9

%

Provision for loan and lease losses

2,953



467



367



3,787



N/M

Net interest income after provision for loan and lease losses

67,526



68,053



68,565



204,144



(0.8)

%











Noninterest income










Service charges on deposit accounts

5,169



4,772



4,644



14,585



8.3

%

Trust and wealth management fees

3,324



3,405



3,747



10,476



(2.4)

%

Bankcard income

3,272



3,501



3,135



9,908



(6.5)

%

Client derivative fees

1,779



1,489



1,103



4,371



19.5

%

Net gains from sales of loans

1,455



1,327



1,216



3,998



9.6

%

Net gains on sale of investment securities

276



838



516



1,630



(67.1)

%

Other

7,667



2,122



3,003



12,792



N/M

Total noninterest income

22,942



17,454



17,364



57,760



31.4

%











Noninterest expenses










Salaries and employee benefits

33,827



31,544



31,750



97,121



7.2

%

Net occupancy

4,328



4,302



4,515



13,145



0.6

%

Furniture and equipment

2,161



2,136



2,177



6,474



1.2

%

Data processing

3,455



3,501



3,298



10,254



(1.3)

%

Marketing

649



982



510



2,141



(33.9)

%

Communication

430



468



447



1,345



(8.1)

%

Professional services

2,030



1,469



1,758



5,257



38.2

%

State intangible tax

721



721



721



2,163



0.0

%

FDIC assessments

1,051



1,018



932



3,001



3.2

%

Loss (gain) - other real estate owned

237



162



24



423



46.3

%

Other

5,554



5,253



4,913



15,720



5.7

%

Total noninterest expenses

54,443



51,556



51,045



157,044



5.6

%

Income before income taxes

36,025



33,951



34,884



104,860



6.1

%

Income tax expense

11,199



11,215



10,470



32,884



(0.1)

%

Net income

$

24,826



$

22,736



$

24,414



$

71,976



9.2

%











ADDITIONAL DATA










Net earnings per share - basic

$

0.40



$

0.37



$

0.40



$

1.17




Net earnings per share - diluted

$

0.40



$

0.37



$

0.39



$

1.16




Dividends declared per share

$

0.17



$

0.17



$

0.17



$

0.51














Return on average assets

1.13

%


1.06

%


1.18

%


1.12

%



Return on average shareholders' equity

10.85

%


10.25

%


11.36

%


10.82

%













Interest income

$

84,918



$

80,789



$

78,828



$

244,535



5.1

%

Tax equivalent adjustment

1,353



1,294



1,225



3,872



4.6

%

Interest income - tax equivalent

86,271



82,083



80,053



248,407



5.1

%

Interest expense

14,439



12,269



9,896



36,604



17.7

%

Net interest income - tax equivalent

$

71,832



$

69,814



$

70,157



$

211,803



2.9

%











Net interest margin

3.50

%


3.50

%


3.63

%


3.54

%



Net interest margin (fully tax equivalent) (1)

3.57

%


3.56

%


3.70

%


3.61

%













Full-time equivalent employees

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 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

N/M = Not meaningful.










FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)














2016



Fourth


Third


Second


First


Full



Quarter


Quarter


Quarter


Quarter


Year

Interest income











Loans and leases, including fees


$

67,883



$

66,997



$

64,424



$

63,399



$

262,703


Investment securities











Taxable


10,698



10,326



10,706



11,373



43,103


Tax-exempt


1,134



1,083



1,156



1,162



4,535


Total investment securities interest


11,832



11,409



11,862



12,535



47,638


Other earning assets


(1,068)



(1,081)



(1,103)



(1,139)



(4,391)


Total interest income


78,647



77,325



75,183



74,795



305,950













Interest expense











Deposits


6,026



5,600



5,457



5,530



22,613


Short-term borrowings


915



1,368



1,053



1,170



4,506


Long-term borrowings


1,540



1,539



1,541



1,540



6,160


Total interest expense


8,481



8,507



8,051



8,240



33,279


Net interest income


70,166



68,818



67,132



66,555



272,671


Provision for loan and lease losses


2,761



1,687



4,037



1,655



10,140


Net interest income after provision for loan and lease losses


67,405



67,131



63,095



64,900



262,531













Noninterest income











Service charges on deposit accounts


5,041



5,056



4,455



4,381



18,933


Trust and wealth management fees


3,241



3,236



3,283



3,440



13,200


Bankcard income


3,136



2,984



3,130



2,882



12,132


Client derivative fees


466



1,210



1,799



1,095



4,570


Net gains from sales of loans


1,711



2,066



1,846



1,181



6,804


Net gains on sale of investment securities


0



398



(188)



24



234


Other


3,351



1,999



5,869



2,509



13,728


Total noninterest income


16,946



16,949



20,194



15,512



69,601













Noninterest expenses











Salaries and employee benefits


31,127



32,093



29,526



29,615



122,361


Net occupancy


4,338



4,543



4,491



4,957



18,329


Furniture and equipment


2,181



2,139



2,130



2,213



8,663


Data processing


3,095



2,828



2,765



2,718



11,406


Marketing


1,458



641



801



1,065



3,965


Communication


404



527



477



481



1,889


Professional services


1,731



1,460



1,299



1,813



6,303


State intangible tax


117



639



639



639



2,034


FDIC assessments


1,001



1,048



1,112



1,132



4,293


Loss (gain) - other real estate owned


(953)



(112)



43



(190)



(1,212)


Other


5,664



5,299



6,130



6,277



23,370


Total noninterest expenses


50,163



51,105



49,413



50,720



201,401


Income before income taxes


34,188



32,975



33,876



29,692



130,731


Income tax expense


10,894



10,125



11,308



9,878



42,205


Net income


$

23,294



$

22,850



$

22,568



$

19,814



$

88,526













ADDITIONAL DATA











Net earnings per share - basic


$

0.38



$

0.37



$

0.37



$

0.32



$

1.45


Net earnings per share - diluted


$

0.38



$

0.37



$

0.36



$

0.32



$

1.43


Dividends declared per share


$

0.16



$

0.16



$

0.16



$

0.16



$

0.64













Return on average assets


1.11

%


1.09

%


1.11

%


0.98

%


1.07

%

Return on average shareholders' equity


10.73

%


10.62

%


10.84

%


9.70

%


10.48

%












Interest income


$

78,647



$

77,325



$

75,183



$

74,795



$

305,950


Tax equivalent adjustment


1,077



1,028



1,058



1,052



4,215


Interest income - tax equivalent


79,724



78,353



76,241



75,847



310,165


Interest expense


8,481



8,507



8,051



8,240



33,279


Net interest income - tax equivalent


$

71,243



$

69,846



$

68,190



$

67,607



$

276,886













Net interest margin


3.66

%


3.61

%


3.61

%


3.62

%


3.62

%

Net interest margin (fully tax equivalent) (1)


3.71

%


3.66

%


3.67

%


3.68

%


3.68

%












Full-time equivalent employees


1,420



1,402



1,403



1,390















(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)
















Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


Sep. 30,


% Change


% Change


2017


2017


2017


2016


2016


Linked Qtr.


Comparable Qtr.

ASSETS














Cash and due from banks

$

117,840



$

117,478



$

117,914



$

121,598



$

117,982



0.3

%


(0.1)

%

Interest-bearing deposits with other banks

34,787



29,839



39,058



82,450



16,765



16.6

%


107.5

%

Investment securities available-for-sale

1,286,770



1,298,578



1,220,046



1,039,870



1,120,494



(0.9)

%


14.8

%

Investment securities held-to-maturity

669,816



696,269



730,796



763,254



628,497



(3.8)

%


6.6

%

Other investments

53,198



53,285



50,996



51,077



51,170



(0.2)

%


4.0

%

Loans held for sale

16,466



11,939



7,657



13,135



17,414



37.9

%


(5.4)

%

Loans and leases














Commercial and industrial

1,886,093



1,824,589



1,779,635



1,781,948



1,782,782



3.4

%


5.8

%

Lease financing

86,014



88,152



88,888



93,108



96,046



(2.4)

%


(10.4)

%

Construction real estate

420,941



443,112



446,332



399,434



380,349



(5.0)

%


10.7

%

Commercial real estate

2,523,387



2,471,655



2,398,235



2,427,577



2,468,083



2.1

%


2.2

%

Residential real estate

477,964



490,398



486,601



500,980



507,715



(2.5)

%


(5.9)

%

Home equity

494,342



464,066



458,974



460,388



463,702



6.5

%


6.6

%

Installment

43,650



47,654



52,063



50,639



47,825



(8.4)

%


(8.7)

%

Credit card

44,646



44,139



43,354



43,408



43,009



1.1

%


3.8

%

Total loans

5,977,037



5,873,765



5,754,082



5,757,482



5,789,511



1.8

%


3.2

%

Less:














Allowance for loan and lease losses

54,534



54,873



56,326



57,961



57,618



(0.6)

%


(5.4)

%

Net loans

5,922,503



5,818,892



5,697,756



5,699,521



5,731,893



1.8

%


3.3

%

Premises and equipment

126,790



128,956



131,808



131,579



132,082



(1.7)

%


(4.0)

%

Goodwill and other intangibles

209,730



210,045



210,324



210,625



210,888



(0.1)

%


(0.5)

%

Accrued interest and other assets

323,789



344,761



324,815



324,858



341,296



(6.1)

%


(5.1)

%

Total Assets

$

8,761,689



$

8,710,042



$

8,531,170



$

8,437,967



$

8,368,481



0.6

%


4.7

%















LIABILITIES














Deposits














Interest-bearing demand

$

1,518,011



$

1,496,173



$

1,494,892



$

1,513,771



$

1,494,529



1.5

%


1.6

%

Savings

2,434,086



2,398,262



2,284,821



2,142,189



2,005,407



1.5

%


21.4

%

Time

1,188,597



1,097,911



1,202,563



1,321,843



1,346,736



8.3

%


(11.7)

%

Total interest-bearing deposits

5,140,694



4,992,346



4,982,276



4,977,803



4,846,672



3.0

%


6.1

%

�� Noninterest-bearing

1,585,396



1,476,563



1,547,600



1,547,985



1,492,011



7.4

%


6.3

%

Total deposits

6,726,090



6,468,909



6,529,876



6,525,788



6,338,683



4.0

%


6.1

%

Federal funds purchased and securities sold














under agreements to repurchase

45,532



130,633



52,484



120,212



77,936



(65.1)

%


(41.6)

%

FHLB short-term borrowings

818,200



957,700



806,700



687,700



848,300



(14.6)

%


(3.5)

%

Total short-term borrowings

863,732



1,088,333



859,184



807,912



926,236



(20.6)

%


(6.7)

%

Long-term debt

119,615



119,669



119,629



119,589



119,549



0.0

%


0.1

%

Total borrowed funds

983,347



1,208,002



978,813



927,501



1,045,785



(18.6)

%


(6.0)

%

Accrued interest and other liabilities

137,298



135,014



142,416



119,454



122,876



1.7

%


11.7

%

Total Liabilities

7,846,735



7,811,925



7,651,105



7,572,743



7,507,344



0.4

%


4.5

%















SHAREHOLDERS' EQUITY














Common stock

571,750



569,302



567,911



570,382



569,199



0.4

%


0.4

%

Retained earnings

477,588



463,250



451,073



437,188



423,800



3.1

%


12.7

%

Accumulated other comprehensive loss

(20,379)



(22,222)



(26,639)



(28,443)



(17,522)



(8.3)

%


16.3

%

Treasury stock, at cost

(114,005)



(112,213)



(112,280)



(113,903)



(114,340)



1.6

%


(0.3)

%

Total Shareholders' Equity

914,954



898,117



880,065



865,224



861,137



1.9

%


6.2

%

Total Liabilities and Shareholders' Equity

$

8,761,689



$

8,710,042



$

8,531,170



$

8,437,967



$

8,368,481



0.6

%


4.7

%















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,


2017


2017


2017


2016


2016


2017


2016

ASSETS














Cash and due from banks

$

111,984



$

116,123



$

115,719



$

122,130



$

116,441



$

114,595



$

118,542


Interest-bearing deposits with other banks

37,199



20,293



40,985



19,557



22,116



32,812



22,696


Investment securities

2,041,785



2,035,334



1,906,699



1,816,944



1,811,240



1,995,101



1,872,958


Loans held for sale

12,705



9,243



8,125



14,729



11,197



10,041



12,052


Loans and leases














Commercial and industrial

1,843,677



1,778,523



1,782,829



1,767,570



1,786,461



1,801,899



1,732,191


Lease financing

85,649



86,880



89,549



93,817



96,518



87,345



97,183


Construction real estate

408,373



447,716



414,038



376,616



380,894



423,355



350,642


Commercial real estate

2,497,170



2,418,355



2,390,004



2,470,280



2,400,308



2,435,569



2,322,277


Residential real estate

489,508



490,709



497,412



503,711



512,341



492,514



510,681


Home equity

473,988



462,431



459,821



461,177



466,062



465,465



466,317


Installment

45,911



51,275



50,722



49,071



47,428



49,285



44,532


Credit card

45,072



44,478



44,013



43,894



42,564



44,525



41,622


Total loans

5,889,348



5,780,367



5,728,388



5,766,136



5,732,576



5,799,957



5,565,445


Less:














Allowance for loan and lease losses

55,326



57,379



58,461



58,733



58,284



57,044



56,231


Net loans

5,834,022



5,722,988



5,669,927



5,707,403



5,674,292



5,742,913



5,509,214


Premises and equipment

128,539



131,654



132,384



132,414



133,360



130,845



136,543


Goodwill and other intangibles

209,933



210,215



210,513



210,768



211,029



210,218



211,365


Accrued interest and other assets

340,750



337,111



324,719



335,967



342,481



334,252



332,000


Total Assets

$

8,716,917



$

8,582,961



$

8,409,071



$

8,359,912



$

8,322,156



$

8,570,777



$

8,215,370
















LIABILITIES














Deposits














Interest-bearing demand

$

1,494,367



$

1,483,186



$

1,484,427



$

1,540,755



$

1,447,226



$

1,487,363



$

1,440,638


Savings

2,494,592



2,408,950



2,224,708



2,093,557



2,015,602



2,377,072



1,998,727


Time

1,181,406



1,164,087



1,233,631



1,378,301



1,284,059



1,192,850



1,348,345


Total interest-bearing deposits

5,170,365



5,056,223



4,942,766



5,012,613



4,746,887



5,057,285



4,787,710


Noninterest-bearing

1,510,032



1,513,995



1,499,097



1,544,598



1,453,842



1,507,748



1,427,323


Total deposits

6,680,397



6,570,218



6,441,863



6,557,211



6,200,729



6,565,033



6,215,033


Federal funds purchased and securities sold














under agreements to repurchase

71,315



62,893



88,048



93,452



87,343



74,024



87,715


FHLB short-term borrowings

808,842



812,588



760,673



602,720



946,096



794,211



854,619


Total short-term borrowings

880,157



875,481



848,721



696,172



1,033,439



868,235



942,334


Long-term debt

119,661



119,651



119,605



119,756



119,603



119,639



119,577


Total borrowed funds

999,818



995,132



968,326



815,928



1,153,042



987,874



1,061,911


Accrued interest and other liabilities

128,645



128,007



127,667



123,264



112,089



128,110



99,929


Total Liabilities

7,808,860



7,693,357



7,537,856



7,496,403



7,465,860



7,681,017



7,376,873
















SHAREHOLDERS' EQUITY














Common stock

570,216



568,654



570,058



569,779



568,203



569,643



568,812


Retained earnings

470,591



456,648



442,104



430,402



419,901



456,552



407,527


Accumulated other comprehensive loss

(19,940)



(23,414)



(27,569)



(22,436)



(17,701)



(23,613)



(21,907)


Treasury stock, at cost

(112,810)



(112,284)



(113,378)



(114,236)



(114,107)



(112,822)



(115,935)


Total Shareholders' Equity

908,057



889,604



871,215



863,509



856,296



889,760



838,497


Total Liabilities and Shareholders' Equity

$

8,716,917



$

8,582,961



$

8,409,071



$

8,359,912



$

8,322,156



$

8,570,777



$

8,215,370
















FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)








Quarterly Averages


Year-to-Date Averages



September 30, 2017


June 30, 2017


September 30, 2016


September 30, 2017


September 30, 2016



Balance


Yield


Balance


Yield


Balance


Yield


Balance


Yield


Balance


Yield

Earning assets





















Investments:





















Investment securities


$

2,041,785



2.85

%


$

2,035,334



2.77

%


$

1,811,240



2.50

%


$

1,995,101



2.79

%


$

1,872,958



2.56

%

Interest-bearing deposits with other banks


37,199



1.28

%


20,293



1.11

%


22,116



0.54

%


32,812



1.05

%


22,696



0.52

%

Gross loans (1)


5,910,985



4.71

%


5,799,937



4.61

%


5,757,804



4.54

%


5,820,248



4.65

%


5,593,016



4.58

%

Total earning assets


7,989,969



4.22

%


7,855,564



4.13

%


7,591,160



4.04

%


7,848,161



4.17

%


7,488,670



4.06

%






















Nonearning assets





















Allowance for loan and lease losses


(55,326)





(57,379)





(58,284)





(57,044)





(56,231)




Cash and due from banks


111,984





116,123





116,441





114,595





118,542




Accrued interest and other assets


670,290





668,653





672,839





665,065





664,389




Total assets


$

8,716,917





$

8,582,961





$

8,322,156





$

8,570,777





$

8,215,370

























Interest-bearing liabilities





















Deposits:





















Interest-bearing demand


$

1,494,367



0.33

%


$

1,483,186



0.27

%


$

1,447,226



0.15

%


$

1,487,363



0.27

%


$

1,440,638



0.14

%

Savings


2,494,592



0.82

%


2,408,950



0.69

%


2,015,602



0.27

%


2,377,072



0.67

%


1,998,727



0.26

%

Time


1,181,406



1.32

%


1,164,087



1.23

%


1,284,059



1.14

%


1,192,850



1.24

%


1,348,345



1.10

%

Total interest-bearing deposits


5,170,365



0.79

%


5,056,223



0.69

%


4,746,887



0.47

%


5,057,285



0.69

%


4,787,710



0.46

%

Borrowed funds





















Short-term borrowings


880,157



1.16

%


875,481



0.94

%


1,033,439



0.53

%


868,235



0.93

%


942,334



0.51

%

Long-term debt


119,661



5.10

%


119,651



5.16

%


119,603



5.11

%


119,639



5.16

%


119,577



5.17

%

Total borrowed funds


999,818



1.63

%


995,132



1.45

%


1,153,042



1.00

%


987,874



1.44

%


1,061,911



1.03

%

Total interest-bearing liabilities


6,170,183



0.93

%


6,051,355



0.81

%


5,899,929



0.57

%


6,045,159



0.81

%


5,849,621



0.57

%






















Noninterest-bearing liabilities





















Noninterest-bearing demand deposits


1,510,032





1,513,995





1,453,842





1,507,748





1,427,323




Other liabilities


128,645





128,007





112,089





128,110





99,929




Shareholders' equity


908,057





889,604





856,296





889,760





838,497




Total liabilities & shareholders' equity


$

8,716,917





$

8,582,961





$

8,322,156





$

8,570,777





$

8,215,370

























Net interest income


$

70,479





$

68,520





$

68,818





$

207,931





$

202,505




Net interest spread




3.29

%




3.32

%




3.47

%




3.36

%




3.49

%

Net interest margin




3.50

%




3.50

%




3.61

%




3.54

%




3.61

%






















Tax equivalent adjustment




0.07

%




0.06

%




0.05

%




0.07

%




0.06

%

Net interest margin (fully tax equivalent)




3.57

%




3.56

%




3.66

%




3.61

%




3.67

%











































(1) Loans held for sale, nonaccrual loans, covered 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


$

426



$

206



$

632



$

1,620



$

1,658



$

3,278



$

3,344



$

2,553



$

5,897


Interest-bearing deposits with other banks


9



55



64



41



49



90



89



79



168


Gross loans (2)


1,368



2,065



3,433



2,408



1,817



4,225



3,258



7,909



11,167


Total earning assets


1,803



2,326



4,129



4,069



3,524



7,593



6,691



10,541



17,232





















Interest-bearing liabilities



















Total interest-bearing deposits


$

1,318



$

338



$

1,656



$

3,889



$

846



$

4,735



$

7,969



$

1,383



$

9,352


Borrowed funds



















Short-term borrowings


474



41



515



1,645



(447)



1,198



2,974



(516)



2,458


Long-term debt


(18)



17



(1)



(2)



1



(1)



(6)



2



(4)


Total borrowed funds


456



58



514



1,643



(446)



1,197



2,968



(514)



2,454


Total interest-bearing liabilities


1,774



396



2,170



5,532



400



5,932



10,937



869



11,806


Net interest income (1)


$

29



$

1,930



$

1,959



$

(1,463)



$

3,124



$

1,661



$

(4,246)



$

9,672



$

5,426








































(1) Not tax equivalent.

(2) Loans held for sale, nonaccrual loans, covered 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,



2017


2017


2017


2016


2016


2017


2016


ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY












Balance at beginning of period

$

54,873



$

56,326



$

57,961



$

57,618



$

56,708



$

57,961



$

53,398



Provision for loan and lease losses

2,953



467



367



2,761



1,687



3,787



7,379



Gross charge-offs















Commercial and industrial

4,122



3,065



1,743



1,590



296



8,930



1,040



Lease financing

0



0



0



0



0



0



0



Construction real estate

0



0



0



(2)



64



0



95



Commercial real estate

58



485



485



990



1,135



1,028



3,993



Residential real estate

23



223



61



224



90



307



163


Home equity

71



384



180



232



475



635



1,213



Installment

24



126



49



60



223



199



326



Credit card

201



215



232



326



267



648



864



Total gross charge-offs

4,499



4,498



2,750



3,420



2,550



11,747



7,694



Recoveries















Commercial and industrial

325



693



262



186



327



1,280



969



Lease financing

0



1



0



0



0



1



1



Construction real estate

0



89



0



51



6



89



234



Commercial real estate

585



1,398



256



382



997



2,239



2,120



Residential real estate

70



59



9



54



38



138



182



Home equity

110



222



106



144



257



438



576



Installment

74



43



71



118



56



188



217



Credit card

43



73



44



67



92



160



236



Total recoveries

1,207



2,578



748



1,002



1,773



4,533



4,535



Total net charge-offs

3,292



1,920



2,002



2,418



777



7,214



3,159



Ending allowance for loan and lease losses

$

54,534



$

54,873



$

56,326



$

57,961



$

57,618



$

54,534



$

57,618


















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












Commercial and industrial

0.82

%


0.53

%


0.34

%


0.32

%


(0.01)

%


0.57

%


0.01

%


Lease financing

0.00

%


0.00

%


0.00

%


0.00

%


0.00

%


0.00

%


0.00

%


Construction real estate

0.00

%


(0.08)

%


0.00

%


(0.06)

%


0.06

%


(0.03)

%


(0.05)

%


Commercial real estate

(0.08)

%


(0.15)

%


0.04

%


0.10

%


0.02

%


(0.07)

%


0.11

%


Residential real estate

(0.04)

%


0.13

%


0.04

%


0.13

%


0.04

%


0.05

%


0.00

%


Home equity

(0.03)

%


0.14

%


0.07

%


0.08

%


0.19

%


0.06

%


0.18

%


Installment

(0.43)

%


0.65

%


(0.18)

%


(0.47)

%


1.40

%


0.03

%


0.33

%


Credit card

1.39

%


1.28

%


1.73

%


2.35

%


1.64

%


1.47

%


2.02

%


Total net charge-offs

0.22

%


0.13

%


0.14

%


0.17

%


0.05

%


0.17

%


0.08

%

















COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS




Nonaccrual loans (1)















Commercial and industrial

$

9,026



$

15,099



$

9,249



$

2,419



$

3,201



$

9,026



$

3,201



Lease financing

87



94



102



195



214



87



214



Construction real estate

824



1,075



1,075



0



0



824



0



Commercial real estate

12,244



12,617



14,324



6,098



5,985



12,244



5,985



Residential real estate

4,333



4,442



4,520



5,251



4,759



4,333



4,759



Home equity

3,364



2,937



3,571



3,400



3,815



3,364



3,815



Installment

240



307



322



367



327



240



327



Nonaccrual loans

30,118



36,571



33,163



17,730



18,301



30,118



18,301



Accruing troubled debt restructurings (TDRs)

19,692



20,135



29,948



30,240



32,164



19,692



32,164



Total nonperforming loans

49,810



56,706



63,111



47,970



50,465



49,810



50,465



Other real estate owned (OREO)

3,116



5,961



5,300



6,284



7,577



3,116



7,577



Total nonperforming assets

52,926



62,667



68,411



54,254



58,042



52,926



58,042



Accruing loans past due 90 days or more

84



124



96



142



130



84



130



Total underperforming assets

$

53,010



$

62,791



$

68,507



$

54,396



$

58,172



$

53,010



$

58,172



Total classified assets

$

94,320



$

98,391



$

114,550



$

125,155



$

142,169



$

94,320



$

142,169


















CREDIT QUALITY RATIOS












Allowance for loan and lease losses to















Nonaccrual loans

181.07

%


150.05

%


169.85

%


326.91

%


314.84

%


181.07

%


314.84

%


Nonperforming loans

109.48

%


96.77

%


89.25

%


120.83

%


114.17

%


109.48

%


114.17

%


Total ending loans

0.91

%


0.93

%


0.98

%


1.01

%


1.00

%


0.91

%


1.00

%


Nonperforming loans to total loans

0.83

%


0.97

%


1.10

%


0.83

%


0.87

%


0.83

%


0.87

%


Nonperforming assets to















Ending loans, plus OREO

0.89

%


1.07

%


1.19

%


0.94

%


1.00

%


0.89

%


1.00

%


Total assets

0.60

%


0.72

%


0.80

%


0.64

%


0.69

%


0.60

%


0.69

%


Nonperforming assets, excluding accruing TDRs to















Ending loans, plus OREO

0.56

%


0.72

%


0.67

%


0.42

%


0.45

%


0.56

%


0.45

%


Total assets

0.38

%


0.49

%


0.45

%


0.28

%


0.31

%


0.38

%


0.31

%


Classified assets to total assets

1.08

%


1.13

%


1.34

%


1.48

%


1.70

%


1.08

%


1.70

%

















(1) Nonaccrual loans include nonaccrual TDRs of $9.1 million, $9.4 million, $7.8 million, $5.1 million, and $5.6 million, as of September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, and September 30, 2016, respectively.








FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)












Nine months ended,


Sep. 30,


Jun. 30,


Mar. 31,


Dec. 31,


Sep. 30,


Sep. 30,


Sep. 30,


2017


2017


2017


2016


2016


2017


2016

PER COMMON SHARE














Market Price














High

$

28.50



$

28.95



$

28.90



$

29.35



$

22.52



$

28.95



$

22.52


Low

$

23.10



$

25.05



$

26.00



$

21.05



$

18.83



$

23.10



$

14.91


Close

$

26.15



$

27.70



$

27.45



$

28.45



$

21.84



$

26.15



$

21.84
















Average shares outstanding - basic

61,577,619



61,543,478



61,398,414



61,311,068



61,280,283



61,507,160



61,170,845


Average shares outstanding - diluted

62,189,637



62,234,022



62,140,384



62,080,683



62,086,067



62,185,874



61,962,961


Ending shares outstanding

62,061,465



62,141,071



62,134,285



61,979,552



61,952,873



62,061,465



61,952,873
















Total shareholders' equity

$

914,954



$

898,117



$

880,065



$

865,224



$

861,137



$

914,954



$

861,137
















REGULATORY CAPITAL

Preliminary










Preliminary



Common equity tier 1 capital

$

746,730



$

731,024



$

716,678



$

703,891



$

688,363



$

746,730



$

688,363


Common equity tier 1 capital ratio

10.53

%


10.54

%


10.59

%


10.46

%


10.20

%


10.53

%


10.20

%

Tier 1 capital

$

746,834



$

731,128



$

716,782



$

703,995



$

688,467



$

746,834



$

688,467


Tier 1 ratio

10.53

%


10.54

%


10.59

%


10.46

%


10.20

%


10.53

%


10.20

%

Total capital

$

920,642



$

905,222



$

892,161



$

881,158



$

865,248



$

920,642



$

865,248


Total capital ratio

12.98

%


13.05

%


13.19

%


13.10

%


12.82

%


12.98

%


12.82

%

Total capital in excess of minimum














requirement

$

264,751



$

263,580



$

266,367



$

300,804



$

282,996



$

264,751



$

282,996


Total risk-weighted assets

$

7,090,714



$

6,936,665



$

6,765,336



$

6,728,737



$

6,750,750



$

7,090,714



$

6,750,750


Leverage ratio

8.74

%


8.69

%


8.69

%


8.60

%


8.45

%


8.74

%


8.45

%















OTHER CAPITAL RATIOS














Ending shareholders' equity to ending assets

10.44

%


10.31

%


10.32

%


10.25

%


10.29

%


10.44

%


10.29

%

Ending tangible shareholders' equity to ending tangible assets

8.25

%


8.09

%


8.05

%


7.96

%


7.97

%


8.25

%


7.97

%

Average shareholders' equity to average assets

10.42

%


10.36

%


10.36

%


10.33

%


10.29

%


10.38

%


10.21

%

Average tangible shareholders' equity to average tangible assets

8.21

%


8.12

%


8.06

%


8.01

%


7.96

%


8.13

%


7.84

%















View original content:http://www.prnewswire.com/news-releases/first-financial-bancorp-announces-third-quarter-results-300540115.html

SOURCE First Financial Bancorp.