FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - FIRST FINANCIAL BANCORP /OH/	exh992earningsrelease4q1.htm
8-K - 8-K - FIRST FINANCIAL BANCORP /OH/	a8kearningsrelease4q19.htm

Exhibit 99.1

First Financial Bancorp Announces Fourth Quarter and

Full Year 2019 Financial Results


•	Fourth Quarter 2019 Earnings per Diluted Share of $0.49; $0.52 on an Adjusted Basis


•	32.6% Decline in Classified Assets


•	6.0% Loan Growth on an Annualized Basis


•	8.1% Average Deposit Growth on an Annualized Basis


•	3.89% Fully Tax Equivalent Net Interest Margin

Cincinnati, Ohio - January 23, 2020 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the fourth quarter 2019.

For the three months ended December 31, 2019, the Company reported net income of $48.7 million, or $0.49 per diluted common share. These results compare to net income of $50.9 million, or $0.51 per diluted common share, for the third quarter of 2019 and $55.0 million, or $0.56 per diluted common share, for the fourth quarter of 2018. For the twelve months ended December 31, 2019, First Financial had earnings per diluted common share of $2.00 compared to $1.93 for the same period in 2018.

Return on average assets for the fourth quarter of 2019 was 1.34% while return on average tangible common equity was 15.84%. These compare to returns on average assets of 1.41% and 1.59%, and returns on average tangible common equity of 16.15% and 19.63%, in the third quarter of 2019 and the fourth quarter of 2018, respectively.

Fourth quarter 2019 highlights include:


•	After adjustments⁽¹⁾ for merger-related and nonrecurring items:


◦	Net income of $0.52 per diluted common share


◦	1.41% return on average assets; 16.73% return on average tangible common equity


•	Adjustments to net income include:


◦	$0.7 million of severance and other merger related costs


◦	$2.9 million historic tax credit investment write-down; offset by impact to income taxes


◦	$1.7 million of other nonrecurring costs such as branch consolidation costs


◦	$0.7 million of taxes on merger-related executive compensation


•	Loan balances grew 6.0% on an annualized basis


◦	$138.0 million increase compared to the linked quarter driven by commercial real estate


•	Average deposit balances grew 8.1% on an annualized basis


◦	Noninterest bearing demand deposits grew 19.8% on an annualized basis


•	Net interest margin of 3.89% on a fully tax-equivalent basis⁽¹⁾


◦	7 basis point reduction from the linked quarter


◦	Impact of lower interest rates on asset yields partially offset by funding cost reductions and favorable shift in funding mix


•	Noninterest income of $36.8 million


◦	Positively impacted by full quarter impact of Bannockburn acquisition, strong mortgage banking activity and client derivative fees

____________________________________________________________________________________________⁽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.


•	Noninterest expenses of $93.1 million, or $87.8 million as adjusted⁽¹⁾


◦	Efficiency ratio of 59.8%; 56.4% as adjusted⁽¹⁾


◦	Includes $1.7 million of additional incentive compensation due to strong operating results


◦	$0.4 million contribution to First Financial Foundation


◦	$0.8 million of additional collection expenses in fourth quarter


•	Significant decline in nonperforming and classified asset levels; ALLL relatively flat at $57.7 million, or 0.63% of loans; Provision expense sufficient to cover net charge-offs and loan growth


•	Strong capital ratios


◦	Total capital of 13.39%; Tier 1 common equity of 11.30%; Tangible common equity of 9.07%


◦	Tangible book value per share of $12.42

Archie Brown, President and Chief Executive Officer, commented, “We are very pleased to announce fourth quarter results that are highlighted by strong earnings, record loan originations, improved loan growth and a significant reduction in classified assets."

Mr. Brown continued, “A 31% increase in loan originations from the linked quarter resulted in 6.0% annualized loan growth. This was our strongest quarter to date in loan volume with originations increasing across most of our portfolios, led by Commercial Real Estate and Commercial loans. Net interest margin was once again at the high end of our expectations as our proactive funding cost management partially offset lower asset yields following the third rate cut in four months in October. Credit quality trends significantly improved as net charge-offs normalized during the period and we resolved a number of problem loans, resulting in significantly lower classified asset balances."

Mr. Brown further remarked, "The full quarter impact of the Bannockburn acquisition along with near record level client derivative fees and sustained mortgage banking volume drove noninterest income higher. Expenses were elevated during the period primarily due to the write-down of a historic tax credit investment and higher incentive compensation resulting from our strong operating results, however our adjusted efficiency ratio was in line with our stated expectations and reflects our deliberate expense management efforts."

Mr. Brown concluded, "2019 was another successful year for First Financial. The year was highlighted by record earnings, top quartile returns, shareholder-focused capital actions and the Bannockburn acquisition despite headwinds from the Fed rate cuts and increased credit costs related to one loan in our Franchise portfolio. Our success is a direct reflection of the work performed by our associates. Their resolve and dedication to delivering unparalleled service to our clients and return to our shareholders embodies our organizational values and they have worked tirelessly to establish themselves and First Financial as valued partners in our communities. Due to their continued efforts and commitment I remain confident in our ability to sustain this success into 2020 and beyond."

Full detail of the Company’s fourth quarter and full year performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information

First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, January 24, 2020 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 10137978. 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 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, 2018, 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, 2019, the Company had $14.5 billion in assets, $9.2 billion in loans, $10.2 billion in deposits and $2.2 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 $2.9 billion in assets under management as of December 31, 2019. The Company operated 145 full service banking centers as of December 31, 2019, primarily in Ohio, Indiana and Kentucky, 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.

Contact Information

Investors/Analysts Media

Jamie Anderson Tim Condron

Chief Financial Officer Marketing Communications Manager

(513) 887-5400 (513) 979-5796

InvestorRelations@bankatfirst.com media@bankatfirst.com

Selected Financial Information

December 31, 2019

(unaudited)



Contents	Page
Consolidated Financial Highlights	2
Consolidated Statements of Income	3
Consolidated Quarterly Statements of Income	4-5
Consolidated Statements of Condition	6
Average Consolidated Statements of Condition	7
Net Interest Margin Rate / Volume Analysis	8-9
Credit Quality	10
Capital Adequacy	11



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,
	2019			2019			2019			2019			2018			2019			2018
RESULTS OF OPERATIONS
Net income	$	48,677		$	50,856		$	52,703		$	45,839		$	55,014		$	198,075		$	172,595
Net earnings per share - basic	$	0.49		$	0.52		$	0.54		$	0.47		$	0.56		$	2.01		$	1.95
Net earnings per share - diluted	$	0.49		$	0.51		$	0.53		$	0.47		$	0.56		$	2.00		$	1.93
Dividends declared per share	$	0.23		$	0.23		$	0.22		$	0.22		$	0.20		$	0.90		$	0.78

KEY FINANCIAL RATIOS
Return on average assets	1.34		%	1.41		%	1.50		%	1.33		%	1.59		%	1.39		%	1.37		%
Return on average shareholders' equity	8.60		%	9.13		%	9.85		%	8.88		%	10.68		%	9.11		%	9.85		%
Return on average tangible shareholders' equity	15.84		%	16.15		%	17.33		%	15.95		%	19.63		%	16.32		%	17.32		%

Net interest margin	3.84		%	3.91		%	3.99		%	4.05		%	4.16		%	3.95		%	4.05		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.89		%	3.96		%	4.04		%	4.10		%	4.21		%	4.00		%	4.10		%

Ending shareholders' equity as a percent of ending assets	15.49		%	15.62		%	15.16		%	15.14		%	14.86		%	15.49		%	14.86		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	9.07		%	9.17		%	9.34		%	9.15		%	8.79		%	9.07		%	8.79		%
Risk-weighted assets	11.09		%	11.34		%	11.82		%	11.61		%	11.20		%	11.09		%	11.20		%

Average shareholders' equity as a percent of average assets	15.53		%	15.43		%	15.22		%	15.01		%	14.84		%	15.30		%	13.89		%
Average tangible shareholders' equity as a percent of
average tangible assets	9.07		%	9.35		%	9.26		%	8.95		%	8.66		%	9.16		%	8.40		%

Book value per share	$	22.82		$	22.59		$	22.18		$	21.60		$	21.23		$	22.82		$	21.23
Tangible book value per share	$	12.42		$	12.33		$	12.79		$	12.19		$	11.72		$	12.42		$	11.72

Common equity tier 1 ratio⁽²⁾	11.30		%	11.52		%	12.00		%	12.03		%	11.87		%	11.30		%	11.87		%
Tier 1 ratio ⁽²⁾	11.69		%	11.91		%	12.40		%	12.43		%	12.28		%	11.69		%	12.28		%
Total capital ratio ⁽²⁾	13.39		%	13.62		%	14.20		%	14.24		%	14.10		%	13.39		%	14.10		%
Leverage ratio ⁽²⁾	9.58		%	9.75		%	10.02		%	9.84		%	9.71		%	9.58		%	9.71		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽³⁾	$	9,149,222		$	9,014,092		$	8,852,662		$	8,773,310		$	8,766,302		$	8,948,535		$	8,151,068
Investment securities	3,102,867			3,290,666			3,408,994			3,355,732			3,204,758			3,288,875			2,897,167
Interest-bearing deposits with other banks	36,672			38,569			33,255			34,709			32,013			35,814			32,090
Total earning assets	$	12,288,761		$	12,343,327		$	12,294,911		$	12,163,751		$	12,003,073		$	12,273,224		$	11,080,325
Total assets	$	14,460,288		$	14,320,514		$	14,102,733		$	13,952,551		$	13,768,958		$	14,210,719		$	12,611,438
Noninterest-bearing deposits	$	2,638,908		$	2,513,458		$	2,484,214		$	2,457,587		$	2,476,773		$	2,524,011		$	2,217,349
Interest-bearing deposits	7,583,531			7,504,708			7,612,146			7,610,092			7,573,069			7,577,347			7,098,836
Total deposits	$	10,222,439		$	10,018,166		$	10,096,360		$	10,067,679		$	10,049,842		$	10,101,358		$	9,316,185
Borrowings	$	1,613,696		$	1,816,983		$	1,656,570		$	1,587,068		$	1,509,642		$	1,669,059		$	1,385,994
Shareholders' equity	$	2,245,107		$	2,210,327		$	2,146,997		$	2,094,234		$	2,042,884		$	2,174,679		$	1,752,261

CREDIT QUALITY RATIOS
Allowance to ending loans	0.63		%	0.62		%	0.69		%	0.64		%	0.64		%	0.63		%	0.64		%
Allowance to nonaccrual loans	119.69		%	93.18		%	119.86		%	95.40		%	79.97		%	119.69		%	79.97		%
Allowance to nonperforming loans	96.73		%	71.46		%	69.33		%	68.94		%	65.13		%	96.73		%	65.13		%
Nonperforming loans to total loans	0.65		%	0.87		%	0.99		%	0.93		%	0.98		%	0.65		%	0.98		%
Nonperforming assets to ending loans, plus OREO	0.67		%	0.89		%	1.00		%	0.95		%	1.00		%	0.67		%	1.00		%
Nonperforming assets to total assets	0.42		%	0.56		%	0.62		%	0.60		%	0.63		%	0.42		%	0.63		%
Classified assets to total assets	0.62		%	0.92		%	1.02		%	1.01		%	0.94		%	0.62		%	0.94		%
Net charge-offs to average loans (annualized)	0.15		%	0.45		%	0.08		%	0.64		%	0.29		%	0.33		%	0.15		%

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest 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, 2019 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,
	2019			2018			% Change		2019			2018			% Change
Interest income
Loans and leases, including fees	$	122,802		$	126,580		(3.0	)%	$	499,009		$	447,187		11.6	%
Investment securities
Taxable	20,137			22,761			(11.5	)%	90,168			79,076			14.0	%
Tax-exempt	4,545			3,896			16.7	%	17,596			13,428			31.0	%
Total investment securities interest	24,682			26,657			(7.4	)%	107,764			92,504			16.5	%
Other earning assets	167			192			(13.0	)%	805			691			16.5	%
Total interest income	147,651			153,429			(3.8	)%	607,578			540,382			12.4	%

Interest expense
Deposits	19,026			17,198			10.6	%	79,032			56,962			38.7	%
Short-term borrowings	5,430			5,186			4.7	%	25,235			18,033			39.9	%
Long-term borrowings	4,293			5,086			(15.6	)%	19,057			16,152			18.0	%
Total interest expense	28,749			27,470			4.7	%	123,324			91,147			35.3	%
Net interest income	118,902			125,959			(5.6	)%	484,254			449,235			7.8	%
Provision for loan and lease losses	4,629			5,310			(12.8	)%	30,598			14,586			109.8	%
Net interest income after provision for loan and lease losses	114,273			120,649			(5.3	)%	453,656			434,649			4.4	%

Noninterest income
Service charges on deposit accounts	9,343			10,185			(8.3	)%	37,939			35,108			8.1	%
Trust and wealth management fees	3,913			3,703			5.7	%	15,644			15,082			3.7	%
Bankcard income	3,405			6,247			(45.5	)%	18,804			20,245			(7.1	)%
Client derivative fees	4,194			1,433			192.7	%	15,662			7,682			103.9	%
Foreign exchange income	6,014			0			100.0	%	7,739			0			100.0	%
Net gains from sales of loans	4,723			1,428			230.7	%	14,851			6,071			144.6	%
Net gains (losses) on sale of investment securities	(296		)	36			(922.2	)%	(406		)	(161		)	(152.2	)%
Other	5,472			6,472			(15.5	)%	21,140			19,355			9.2	%
Total noninterest income	36,768			29,504			24.6	%	131,373			103,382			27.1	%

Noninterest expenses
Salaries and employee benefits	53,952			51,505			4.8	%	209,061			188,990			10.6	%
Net occupancy	6,334			6,322			0.2	%	24,069			24,215			(0.6	)%
Furniture and equipment	4,145			3,498			18.5	%	15,903			14,908			6.7	%
Data processing	5,996			5,599			7.1	%	21,881			28,077			(22.1	)%
Marketing	1,980			1,651			19.9	%	6,908			7,598			(9.1	)%
Communication	882			805			9.6	%	3,267			3,167			3.2	%
Professional services	2,192			1,794			22.2	%	11,254			12,272			(8.3	)%
State intangible tax	1,767			1,086			62.7	%	5,829			4,152			40.4	%
FDIC assessments	1,055			1,018			3.6	%	1,973			3,969			(50.3	)%
Intangible amortization	3,150			2,229			41.3	%	9,671			7,359			31.4	%
Other	11,611			7,845			48.0	%	32,351			29,103			11.2	%
Total noninterest expenses	93,064			83,352			11.7	%	342,167			323,810			5.7	%
Income before income taxes	57,977			66,801			(13.2	)%	242,862			214,221			13.4	%
Income tax expense	9,300			11,787			(21.1	)%	44,787			41,626			7.6	%
Net income	$	48,677		$	55,014		(11.5	)%	$	198,075		$	172,595		14.8	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.49		$	0.56				$	2.01		$	1.95
Net earnings per share - diluted	$	0.49		$	0.56				$	2.00		$	1.93
Dividends declared per share	$	0.23		$	0.20				$	0.90		$	0.78

Return on average assets	1.34		%	1.59		%			1.39		%	1.37		%
Return on average shareholders' equity	8.60		%	10.68		%			9.11		%	9.85		%

Interest income	$	147,651		$	153,429		(3.8	)%	$	607,578		$	540,382		12.4	%
Tax equivalent adjustment	1,630			1,442			13.0	%	6,328			5,147			22.9	%
Interest income - tax equivalent	149,281			154,871			(3.6	)%	613,906			545,529			12.5	%
Interest expense	28,749			27,470			4.7	%	123,324			91,147			35.3	%
Net interest income - tax equivalent	$	120,532		$	127,401		(5.4	)%	$	490,582		$	454,382		8.0	%

Net interest margin	3.84		%	4.16		%			3.95		%	4.05		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.89		%	4.21		%			4.00		%	4.10		%

Full-time equivalent employees	2,065			2,073

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.



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

	2019
	Fourth			Third			Second			First			Full			% Change
	Quarter			Quarter			Quarter			Quarter			Year			Linked Qtr.
Interest income
Loans and leases, including fees	$	122,802		$	126,786		$	126,365		$	123,056		$	499,009		(3.1	)%
Investment securities
Taxable	20,137			22,180			23,616			24,235			90,168			(9.2	)%
Tax-exempt	4,545			4,457			4,336			4,258			17,596			2.0	%
Total investment securities interest	24,682			26,637			27,952			28,493			107,764			(7.3	)%
Other earning assets	167			222			206			210			805			(24.8	)%
Total interest income	147,651			153,645			154,523			151,759			607,578			(3.9	)%

Interest expense
Deposits	19,026			20,151			20,612			19,243			79,032			(5.6	)%
Short-term borrowings	5,430			7,199			6,646			5,960			25,235			(24.6	)%
Long-term borrowings	4,293			4,760			4,963			5,041			19,057			(9.8	)%
Total interest expense	28,749			32,110			32,221			30,244			123,324			(10.5	)%
Net interest income	118,902			121,535			122,302			121,515			484,254			(2.2	)%
Provision for loan and lease losses	4,629			5,228			6,658			14,083			30,598			(11.5	)%
Net interest income after provision for loan and lease losses	114,273			116,307			115,644			107,432			453,656			(1.7	)%

Noninterest income
Service charges on deposit accounts	9,343			9,874			9,819			8,903			37,939			(5.4	)%
Trust and wealth management fees	3,913			3,718			3,943			4,070			15,644			5.2	%
Bankcard income	3,405			3,316			6,497			5,586			18,804			2.7	%
Client derivative fees	4,194			4,859			4,905			1,704			15,662			(13.7	)%
Foreign exchange income	6,014			1,708			17			0			7,739			252.1	%
Net gains from sales of loans	4,723			4,806			3,432			1,890			14,851			(1.7	)%
Net gains (losses) on sale of investment securities	(296		)	105			(37		)	(178		)	(406		)	381.9	%
Other	5,472			4,754			6,062			4,852			21,140			15.1	%
Total noninterest income	36,768			33,140			34,638			26,827			131,373			10.9	%

Noninterest expenses
Salaries and employee benefits	53,952			53,212			53,985			47,912			209,061			1.4	%
Net occupancy	6,334			5,509			5,596			6,630			24,069			15.0	%
Furniture and equipment	4,145			4,120			4,222			3,416			15,903			0.6	%
Data processing	5,996			5,774			4,984			5,127			21,881			3.8	%
Marketing	1,980			1,346			1,976			1,606			6,908			47.1	%
Communication	882			910			747			728			3,267			(3.1	)%
Professional services	2,192			4,771			2,039			2,252			11,254			(54.1	)%
State intangible tax	1,767			1,445			1,307			1,310			5,829			22.3	%
FDIC assessments	1,055			(1,097		)	1,065			950			1,973			(196.2	)%
Intangible amortization	3,150			2,432			2,044			2,045			9,671			29.5	%
Other	11,611			7,804			6,413			6,523			32,351			48.8	%
Total noninterest expenses	93,064			86,226			84,378			78,499			342,167			7.9	%
Income before income taxes	57,977			63,221			65,904			55,760			242,862			(8.3	)%
Income tax expense	9,300			12,365			13,201			9,921			44,787			(24.8	)%
Net income	$	48,677		$	50,856		$	52,703		$	45,839		$	198,075		(4.3	)%

ADDITIONAL DATA
Net earnings per share - basic	$	0.49		$	0.52		$	0.54		$	0.47		$	2.01
Net earnings per share - diluted	$	0.49		$	0.51		$	0.53		$	0.47		$	2.00
Dividends declared per share	$	0.23		$	0.23		$	0.22		$	0.22		$	0.90

Return on average assets	1.34		%	1.41		%	1.50		%	1.33		%	1.39		%
Return on average shareholders' equity	8.60		%	9.13		%	9.85		%	8.88		%	9.11		%

Interest income	$	147,651		$	153,645		$	154.523		$	151,759		$	607,578		(3.9	)%
Tax equivalent adjustment	1,630			1,759			1.416			1,523			6,328			(7.3	)%
Interest income - tax equivalent	149,281			155,404			155.939			153,282			613,906			(3.9	)%
Interest expense	28,749			32,110			32.221			30,244			123,324			(10.5	)%
Net interest income - tax equivalent	$	120,532		$	123,294		$	123.718		$	123,038		$	490,582		(2.2	)%

Net interest margin	3.84		%	3.91		%	3.99		%	4.05		%	3.95		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.89		%	3.96		%	4.04		%	4.10		%	4.00		%

Full-time equivalent employees	2,065			2,064			2,076			2,087

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.



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

	2018
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans and leases, including fees	$	126,580		$	123,397		$	122,290		$	74,920		$	447,187
Investment securities
Taxable	22,761			21,801			20,844			13,670			79,076
Tax-exempt	3,896			3,807			4,068			1,657			13,428
Total investment securities interest	26,657			25,608			24,912			15,327			92,504
Other earning assets	192			215			177			107			691
Total interest income	153,429			149,220			147,379			90,354			540,382

Interest expense
Deposits	17,198			14,672			14,794			10,298			56,962
Short-term borrowings	5,186			6,052			4,132			2,663			18,033
Long-term borrowings	5,086			5,011			4,474			1,581			16,152
Total interest expense	27,470			25,735			23,400			14,542			91,147
Net interest income	125,959			123,485			123,979			75,812			449,235
Provision for loan and lease losses	5,310			3,238			3,735			2,303			14,586
Net interest income after provision for loan and lease losses	120,649			120,247			120,244			73,509			434,649

Noninterest income
Service charges on deposit accounts	10,185			10,316			9,568			5,039			35,108
Trust and wealth management fees	3,703			3,728			3,697			3,954			15,082
Bankcard income	6,247			5,261			5,343			3,394			20,245
Client derivative fees	1,433			3,029			1,463			1,757			7,682
Net gains from sales of loans	1,428			1,739			2,316			588			6,071
Net gains on sale of investment securities	36			(167		)	(30		)	0			(161		)
Other	6,472			4,778			5,899			2,206			19,355
Total noninterest income	29,504			28,684			28,256			16,938			103,382

Noninterest expenses
Salaries and employee benefits	51,505			50,852			55,531			31,102			188,990
Net occupancy	6,322			6,765			6,631			4,497			24,215
Furniture and equipment	3,498			4,072			5,298			2,040			14,908
Data processing	5,599			4,502			14,304			3,672			28,077
Marketing	1,651			2,502			2,644			801			7,598
Communication	805			785			1,118			459			3,167
Professional services	1,794			2,621			5,659			2,198			12,272
State intangible tax	1,086			1,223			1,078			765			4,152
FDIC assessments	1,018			734			1,323			894			3,969
Intangible amortization	2,229			2,486			2,364			280			7,359
Other	7,845			8,873			6,805			5,580			29,103
Total noninterest expenses	83,352			85,415			102,755			52,288			323,810
Income before income taxes	66,801			63,516			45,745			38,159			214,221
Income tax expense (benefit)	11,787			12,859			9,327			7,653			41,626
Net income	$	55,014		$	50,657		$	36,418		$	30,506		$	172,595

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
Tax equivalent adjustment	1,442			1,567			1,420			718			5,147
Interest income - tax equivalent	154,871			150,787			148,799			91,072			545,529
Interest expense	27,470			25,735			23,400			14,542			91,147
Net interest income - tax equivalent	$	127,401		$	125,052		$	125,399		$	76,530		$	454,382

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. 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
	2019			2019			2019			2019			2018			Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$	200,691		$	242,482		$	169,694		$	169,004		$	236,221		(17.2	)%	(15.0	)%
Interest-bearing deposits with other banks	56,948			39,669			101,668			50,224			37,738			43.6	%	50.9	%
Investment securities available-for-sale	2,852,084			2,850,502			3,152,970			3,113,811			2,779,255			0.1	%	2.6	%
Investment securities held-to-maturity	142,862			148,778			154,327			158,305			429,328			(4.0	)%	(66.7	)%
Other investments	125,020			124,965			127,439			115,731			115,660			0.0	%	8.1	%
Loans held for sale	13,680			23,528			20,244			8,217			4,372			(41.9	)%	212.9	%
Loans and leases
Commercial and industrial	2,465,877			2,470,017			2,547,997			2,543,427			2,514,661			(0.2	)%	(1.9	)%
Lease financing	88,364			92,616			90,638			95,573			93,415			(4.6	)%	(5.4	)%
Construction real estate	493,182			515,960			497,683			458,113			548,935			(4.4	)%	(10.2	)%
Commercial real estate	4,194,651			4,015,908			3,903,654			3,802,179			3,754,681			4.5	%	11.7	%
Residential real estate	1,055,949			1,055,007			1,015,820			975,120			955,646			0.1	%	10.5	%
Home equity	771,869			776,885			787,139			797,118			817,282			(0.6	)%	(5.6	)%
Installment	82,589			88,275			89,149			90,689			93,212			(6.4	)%	(11.4	)%
Credit card	49,184			49,010			48,706			46,982			46,382			0.4	%	6.0	%
Total loans	9,201,665			9,063,678			8,980,786			8,809,201			8,824,214			1.5	%	4.3	%
Less:
Allowance for loan and lease losses	57,650			56,552			61,549			56,722			56,542			1.9	%	2.0	%
Net loans	9,144,015			9,007,126			8,919,237			8,752,479			8,767,672			1.5	%	4.3	%
Premises and equipment	214,506			213,681			211,313			210,676			215,652			0.4	%	(0.5	)%
Goodwill	937,771			937,689			879,727			879,727			880,251			0.0	%	6.5	%
Other intangibles	76,201			79,506			36,349			38,571			40,805			(4.2	)%	86.7	%
Accrued interest and other assets	747,847			812,519			664,695			577,518			479,706			(8.0	)%	55.9	%
Total Assets	$	14,511,625		$	14,480,445		$	14,437,663		$	14,074,263		$	13,986,660		0.2	%	3.8	%

LIABILITIES
Deposits
Interest-bearing demand	$	2,364,881		$	2,316,301		$	2,332,692		$	2,235,036		$	2,307,071		2.1	%	2.5	%
Savings	2,960,979			2,924,200			2,953,114			3,100,894			3,167,325			1.3	%	(6.5	)%
Time	2,240,441			2,308,617			2,321,908			2,309,810			2,173,564			(3.0	)%	3.1	%
Total interest-bearing deposits	7,566,301			7,549,118			7,607,714			7,645,740			7,647,960			0.2	%	(1.1	)%
Noninterest-bearing	2,643,928			2,534,739			2,501,290			2,488,157			2,492,434			4.3	%	6.1	%
Total deposits	10,210,229			10,083,857			10,109,004			10,133,897			10,140,394			1.3	%	0.7	%
Federal funds purchased and securities sold
under agreements to repurchase	165,181			85,286			260,621			95,015			183,591			93.7	%	(10.0	)%
FHLB short-term borrowings	1,151,000			1,128,900			1,052,700			952,400			857,100			2.0	%	34.3	%
Total short-term borrowings	1,316,181			1,214,186			1,313,321			1,047,415			1,040,691			8.4	%	26.5	%
Long-term debt	414,376			498,778			547,042			546,423			570,739			(16.9	)%	(27.4	)%
Total borrowed funds	1,730,557			1,712,964			1,860,363			1,593,838			1,611,430			1.0	%	7.4	%
Accrued interest and other liabilities	323,134			422,311			280,107			216,109			156,587			(23.5	)%	106.4	%
Total Liabilities	12,263,920			12,219,132			12,249,474			11,943,844			11,908,411			0.4	%	3.0	%

SHAREHOLDERS' EQUITY
Common stock	1,640,771			1,639,333			1,623,699			1,622,554			1,633,256			0.1	%	0.5	%
Retained earnings	711,249			685,368			657,730			626,408			600,014			3.8	%	18.5	%
Accumulated other comprehensive income (loss)	13,323			15,450			5,193			(19,635		)	(44,408		)	(13.8	)%	130.0	%
Treasury stock, at cost	(117,638		)	(78,838		)	(98,433		)	(98,908		)	(110,613		)	49.2	%	6.4	%
Total Shareholders' Equity	2,247,705			2,261,313			2,188,189			2,130,419			2,078,249			(0.6	)%	8.2	%
Total Liabilities and Shareholders' Equity	$	14,511,625		$	14,480,445		$	14,437,663		$	14,074,263		$	13,986,660		0.2	%	3.8	%



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,
	2019			2019			2019			2019			2018			2019			2018
ASSETS
Cash and due from banks	$	221,060		$	191,000		$	173,278		$	181,695		$	213,927		$	191,864		$	188,971
Federal funds sold	0			0			0			0			0			0			196
Interest-bearing deposits with other banks	36,672			38,569			33,255			34,709			32,013			35,814			31,894
Investment securities	3,102,867			3,290,666			3,408,994			3,355,732			3,204,758			3,288,875			2,897,167
Loans held for sale	21,050			18,197			13,258			6,392			10,411			14,774			12,340
Loans and leases
Commercial and industrial	2,469,810			2,509,782			2,533,981			2,509,274			2,402,296			2,505,615			2,518,333
Lease financing	91,225			94,858			94,458			91,043			94,111			92,902			91,476
Construction real estate	501,892			509,742			457,962			496,153			567,086			491,503			540,014
Commercial real estate	4,102,288			3,925,028			3,834,404			3,762,314			3,793,376			3,906,992			3,310,697
Residential real estate	1,053,707			1,035,975			989,923			961,584			941,047			1,010,620			809,114
Home equity	773,119			781,340			789,087			807,768			813,779			787,716			724,926
Installment	85,515			88,760			89,778			91,270			95,779			88,815			95,847
Credit card	50,616			50,410			49,811			47,512			48,417			49,598			47,951
Total loans	9,128,172			8,995,895			8,839,404			8,766,918			8,755,891			8,933,761			8,138,358
Less:
Allowance for loan and lease losses	56,649			61,911			58,335			57,088			58,216			58,504			56,115
Net loans	9,071,523			8,933,984			8,781,069			8,709,830			8,697,675			8,875,257			8,082,243
Premises and equipment	215,171			215,671			211,714			213,208			218,430			213,951			199,727
Goodwill	937,710			899,888			879,726			878,541			878,669			899,131			714,528
Other intangibles	78,190			51,365			37,666			39,900			42,305			51,884			33,682
Accrued interest and other assets	776,045			681,174			563,773			532,544			470,770			639,169			450,690
Total Assets	$	14,460,288		$	14,320,514		$	14,102,733		$	13,952,551		$	13,768,958		$	14,210,719		$	12,611,438

LIABILITIES
Deposits
Interest-bearing demand	$	2,373,962		$	2,325,405		$	2,334,322		$	2,269,948		$	2,342,528		$	2,326,193		$	2,169,396
Savings	2,995,395			2,945,076			3,057,100			3,115,557			3,156,789			3,027,725			2,990,731
Time	2,214,174			2,234,227			2,220,724			2,224,587			2,073,752			2,223,429			1,938,709
Total interest-bearing deposits	7,583,531			7,504,708			7,612,146			7,610,092			7,573,069			7,577,347			7,098,836
Noninterest-bearing	2,638,908			2,513,458			2,484,214			2,457,587			2,476,773			2,524,011			2,217,349
Total deposits	10,222,439			10,018,166			10,096,360			10,067,679			10,049,842			10,101,358			9,316,185
Federal funds purchased and securities sold
under agreements to repurchase	206,800			185,156			126,872			103,147			65,805			155,859			87,221
FHLB short-term borrowings	952,625			1,112,091			982,993			913,974			873,533			990,860			860,206
Total short-term borrowings	1,159,425			1,297,247			1,109,865			1,017,121			939,338			1,146,719			947,427
Long-term debt	454,271			519,736			546,705			569,947			570,304			522,340			438,567
Total borrowed funds	1,613,696			1,816,983			1,656,570			1,587,068			1,509,642			1,669,059			1,385,994
Accrued interest and other liabilities	379,046			275,038			202,806			203,570			166,590			265,623			156,998
Total Liabilities	12,215,181			12,110,187			11,955,736			11,858,317			11,726,074			12,036,040			10,859,177

SHAREHOLDERS' EQUITY
Common stock	1,640,066			1,629,286			1,622,994			1,625,228			1,632,361			1,629,434			1,371,373
Retained earnings	691,236			662,899			635,629			610,737			576,145			650,381			535,139
Accumulated other comprehensive loss	13,986			11,985			(12,889		)	(39,796		)	(55,161		)	(6,480		)	(43,081		)
Treasury stock, at cost	(100,181		)	(93,843		)	(98,737		)	(101,935		)	(110,461		)	(98,656		)	(111,170		)
Total Shareholders' Equity	2,245,107			2,210,327			2,146,997			2,094,234			2,042,884			2,174,679			1,752,261
Total Liabilities and Shareholders' Equity	$	14,460,288		$	14,320,514		$	14,102,733		$	13,952,551		$	13,768,958		$	14,210,719		$	12,611,438



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

	Quarterly Averages															Year-to-Date Averages
	December 31, 2019					September 30, 2019					December 31, 2018					December 31, 2019					December 31, 2018
	Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield
Earning assets
Investments:
Investment securities	$	3,102,867		3.16	%	$	3,290,666		3.21	%	$	3,204,758		3.30	%	$	3,288,875		3.28	%	$	2,897,167		3.19	%
Interest-bearing deposits with other banks	36,672			1.81	%	38,569			2.28	%	32,013			2.38	%	35,814			2.25	%	32,090			2.15	%
Gross loans ⁽¹⁾	9,149,222			5.33	%	9,014,092			5.58	%	8,766,302			5.73	%	8,948,535			5.58	%	8,151,068			5.49	%
Total earning assets	12,288,761			4.77	%	12,343,327			4.94	%	12,003,073			5.07	%	12,273,224			4.95	%	11,080,325			4.88	%

Nonearning assets
Allowance for loan and lease losses	(56,649		)			(61,911		)			(58,216		)			(58,504		)			(56,115		)
Cash and due from banks	221,060					191,000					213,927					191,864					188,971
Accrued interest and other assets	2,007,116					1,848,098					1,610,174					1,804,135					1,398,257
Total assets	$	14,460,288				$	14,320,514				$	13,768,958				$	14,210,719				$	12,611,438

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	2,373,962		0.53	%	$	2,325,405		0.56	%	$	2,342,528		0.48	%	$	2,326,193		0.55	%	$	2,169,396		0.39	%
Savings	2,995,395			0.60	%	2,945,076			0.69	%	3,156,789			0.66	%	3,027,725			0.71	%	2,990,731			0.60	%
Time	2,214,174			2.03	%	2,234,227			2.09	%	2,073,752			1.75	%	2,223,429			2.02	%	1,938,709			1.57	%
Total interest-bearing deposits	7,583,531			1.00	%	7,504,708			1.07	%	7,573,069			0.90	%	7,577,347			1.04	%	7,098,836			0.80	%
Borrowed funds
Short-term borrowings	1,159,425			1.86	%	1,297,247			2.20	%	939,338			2.19	%	1,146,719			2.20	%	947,427			1.90	%
Long-term debt	454,271			3.75	%	519,736			3.63	%	570,304			3.54	%	522,340			3.65	%	438,567			3.68	%
Total borrowed funds	1,613,696			2.39	%	1,816,983			2.61	%	1,509,642			2.70	%	1,669,059			2.65	%	1,385,994			2.47	%
Total interest-bearing liabilities	9,197,227			1.24	%	9,321,691			1.37	%	9,082,711			1.20	%	9,246,406			1.33	%	8,484,830			1.07	%

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	2,638,908					2,513,458					2,476,773					2,524,011					2,217,349
Other liabilities	379,046					275,038					166,590					265,623					156,998
Shareholders' equity	2,245,107					2,210,327					2,042,884					2,174,679					1,752,261
Total liabilities & shareholders' equity	$	14,460,288				$	14,320,514				$	13,768,958				$	14,210,719				$	12,611,438

Net interest income	$	118,902				$	121,535				$	125,959				$	484,254				$	449,235
Net interest spread				3.53	%				3.57	%				3.87	%				3.62	%				3.81	%
Net interest margin				3.84	%				3.91	%				4.16	%				3.95	%				4.05	%

Tax equivalent adjustment				0.05	%				0.05	%				0.05	%				0.05	%				0.05	%
Net interest margin (fully tax equivalent)				3.89	%				3.96	%				4.21	%				4.00	%				4.10	%


⁽¹⁾ Loans held for sale and nonaccrual loans are included in gross loans.



FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS ⁽¹⁾
(Dollars in thousands)
(Unaudited)


	Linked Qtr. Income Variance									Comparable Qtr. Income Variance									Year-to-Date Income Variance
	Rate			Volume			Total			Rate			Volume			Total			Rate			Volume		Total
Earning assets
Investment securities	$	(461	)	$	(1,494	)	$	(1,955	)	$	(1,165	)	$	(810	)	$	(1,975	)	$	2,425		$	12,835	$	15,260
Interest-bearing deposits with other banks	(46		)	(9		)	(55		)	(46		)	21			(25		)	30			84		114
Gross loans ⁽²⁾	(5,798		)	1,814			(3,984		)	(8,918		)	5,140			(3,778		)	7,352			44,470		51,822
Total earning assets	(6,305		)	311			(5,994		)	(10,129		)	4,351			(5,778		)	9,807			57,389		67,196

Interest-bearing liabilities
Total interest-bearing deposits	$	(1,323	)	$	198		$	(1,125	)	$	1,802		$	26		$	1,828		$	17,079		$	4,991	$	22,070
Borrowed funds
Short-term borrowings	(1,124		)	(645		)	(1,769		)	(787		)	1,031			244			2,816			4,386		7,202
Long-term debt	152			(619		)	(467		)	304			(1,097		)	(793		)	(151		)	3,056		2,905
Total borrowed funds	(972		)	(1,264		)	(2,236		)	(483		)	(66		)	(549		)	2,665			7,442		10,107
Total interest-bearing liabilities	(2,295		)	(1,066		)	(3,361		)	1,319			(40		)	1,279			19,744			12,433		32,177
Net interest income ⁽¹⁾	$	(4,010	)	$	1,377		$	(2,633	)	$	(11,448	)	$	4,391		$	(7,057	)	$	(9,937	)	$	44,956	$	35,019


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



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


	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Full Year			Full Year
	2019			2019			2019			2019			2018			2019			2018
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	56,552		$	61,549		$	56,722		$	56,542		$	57,715		$	56,542		$	54,021
Provision for loan and lease losses	4,629			5,228			6,658			14,083			5,310			30,598			14,586
Gross charge-offs
Commercial and industrial	2,919			9,556			1,873			12,328			6,060			26,676			11,533
Lease financing	62			0			0			100			0			162			0
Construction real estate	0			0			0			0			0			0			0
Commercial real estate	1,854			535			86			1,214			1,679			3,689			4,835
Residential real estate	167			278			150			82			80			677			422
Home equity	807			627			689			468			747			2,591			1,725
Installment	31			65			78			49			158			223			435
Credit card	319			598			289			341			392			1,547			1,720
Total gross charge-offs	6,159			11,659			3,165			14,582			9,116			35,565			20,670
Recoveries
Commercial and industrial	1,796			556			291			240			485			2,883			2,066
Lease financing	0			0			0			0			0			0			1
Construction real estate	0			0			5			63			0			68			146
Commercial real estate	439			347			254			73			1,681			1,113			4,106
Residential real estate	72			64			101			36			44			273			211
Home equity	243			335			572			185			274			1,335			1,309
Installment	49			93			61			48			94			251			575
Credit card	29			39			50			34			55			152			191
Total recoveries	2,628			1,434			1,334			679			2,633			6,075			8,605
Total net charge-offs	3,531			10,225			1,831			13,903			6,483			29,490			12,065
Ending allowance for loan and lease losses	$	57,650		$	56,552		$	61,549		$	56,722		$	56,542		$	57,650		$	56,542

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.18		%	1.42		%	0.25		%	1.95		%	0.92		%	0.95		%	0.38		%
Lease financing	0.27		%	0.00		%	0.00		%	0.45		%	0.00		%	0.17		%	0.00		%
Construction real estate	0.00		%	0.00		%	0.00		%	(0.05		)%	0.00		%	(0.01		)%	(0.03		)%
Commercial real estate	0.14		%	0.02		%	(0.02		)%	0.12		%	0.00		%	0.07		%	0.02		%
Residential real estate	0.04		%	0.08		%	0.02		%	0.02		%	0.02		%	0.04		%	0.03		%
Home equity	0.29		%	0.15		%	0.06		%	0.14		%	0.23		%	0.16		%	0.06		%
Installment	(0.08		)%	(0.13		)%	0.08		%	0.00		%	0.27		%	(0.03		)%	(0.15		)%
Credit card	2.27		%	4.40		%	1.92		%	2.62		%	2.76		%	2.81		%	3.19		%
Total net charge-offs	0.15		%	0.45		%	0.08		%	0.64		%	0.29		%	0.33		%	0.15		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans ⁽¹⁾
Commercial and industrial	$	24,346		$	28,358		$	18,502		$	19,263		$	30,925		$	24,346		$	30,925
Lease financing	223			284			295			301			22			223			22
Construction real estate	0			5			6			7			9			0			9
Commercial real estate	7,295			14,889			15,981			21,082			20,500			7,295			20,500
Residential real estate	10,892			11,655			11,627			13,052			13,495			10,892			13,495
Home equity	5,242			5,427			4,745			5,581			5,580			5,242			5,580
Installment	167			75			195			170			169			167			169
Nonaccrual loans	48,165			60,693			51,351			59,456			70,700			48,165			70,700
Accruing troubled debt restructurings (TDRs)	11,435			18,450			37,420			22,817			16,109			11,435			16,109
Total nonperforming loans	59,600			79,143			88,771			82,273			86,809			59,600			86,809
Other real estate owned (OREO)	2,033			1,613			1,421			1,665			1,401			2,033			1,401
Total nonperforming assets	61,633			80,756			90,192			83,938			88,210			61,633			88,210
Accruing loans past due 90 days or more	201			287			107			178			63			201			63
Total underperforming assets	$	61,834		$	81,043		$	90,299		$	84,116		$	88,273		$	61,834		$	88,273
Total classified assets	$	89,250		$	132,500		$	147,753		$	142,014		$	131,668		$	89,250		$	131,668

CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans	119.69		%	93.18		%	119.86		%	95.40		%	79.97		%	119.69		%	79.97		%
Nonperforming loans	96.73		%	71.46		%	69.33		%	68.94		%	65.13		%	96.73		%	65.13		%
Total ending loans	0.63		%	0.62		%	0.69		%	0.64		%	0.64		%	0.63		%	0.64		%
Nonperforming loans to total loans	0.65		%	0.87		%	0.99		%	0.93		%	0.98		%	0.65		%	0.98		%
Nonperforming assets to
Ending loans, plus OREO	0.67		%	0.89		%	1.00		%	0.95		%	1.00		%	0.67		%	1.00		%
Total assets	0.42		%	0.56		%	0.62		%	0.60		%	0.63		%	0.42		%	0.63		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.55		%	0.69		%	0.59		%	0.69		%	0.82		%	0.55		%	0.82		%
Total assets	0.35		%	0.43		%	0.37		%	0.43		%	0.52		%	0.35		%	0.52		%
Classified assets to total assets	0.62		%	0.92		%	1.02		%	1.01		%	0.94		%	0.62		%	0.94		%

(1) Nonaccrual loans include nonaccrual TDRs of $18.5 million, $21.5 million, $11.0 million, $13.1 million, and $22.4 million, as of December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.



FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																Twelve months ended,
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2019			2019			2019			2019			2018			2019			2018
PER COMMON SHARE
Market Price
High	$	26.04		$	25.49		$	25.80		$	28.56		$	29.58		$	28.56		$	33.55
Low	$	23.24		$	22.37		$	22.16		$	23.02		$	22.40		$	22.16		$	22.40
Close	$	25.44		$	24.48		$	24.22		$	24.06		$	23.72		$	25.44		$	23.72

Average shares outstanding - basic	98,684,706			98,517,025			98,083,799			97,926,088			97,424,839			98,305,570			88,582,090
Average shares outstanding - diluted	99,232,167			99,077,723			98,648,384			98,436,311			98,468,237			98,851,471			89,614,205
Ending shares outstanding	98,490,998			100,094,819			98,647,690			98,613,872			97,894,286			98,490,998			97,894,286

Total shareholders' equity	$	2,247,705		$	2,261,313		$	2,188,189		$	2,130,419		$	2,078,249		$	2,247,705		$	2,078,249

REGULATORY CAPITAL	Preliminary															Preliminary
Common equity tier 1 capital	$	1,245,746		$	1,253,803		$	1,281,406		$	1,246,004		$	1,215,613		$	1,245,746		$	1,215,613
Common equity tier 1 capital ratio	11.30		%	11.52		%	12.00		%	12.03		%	11.87		%	11.30		%	11.87		%
Tier 1 capital	$	1,288,185		$	1,296,399		$	1,323,905		$	1,287,757		$	1,257,366		$	1,288,185		$	1,257,366
Tier 1 ratio	11.69		%	11.91		%	12.40		%	12.43		%	12.28		%	11.69		%	12.28		%
Total capital	$	1,475,813		$	1,482,708		$	1,515,382		$	1,474,723		$	1,444,146		$	1,475,813		$	1,444,146
Total capital ratio	13.39		%	13.62		%	14.20		%	14.24		%	14.10		%	13.39		%	14.10		%
Total capital in excess of minimum requirement	$	318,315		$	339,935		$	394,571		$	387,048		$	432,832		$	318,315		$	432,832
Total risk-weighted assets	$	11,023,795		$	10,883,554		$	10,674,393		$	10,358,805		$	10,241,159		$	11,023,795		$	10,241,159
Leverage ratio	9.58		%	9.75		%	10.02		%	9.84		%	9.71		%	9.58		%	9.71		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	15.49		%	15.62		%	15.16		%	15.14		%	14.86		%	15.49		%	14.86		%
Ending tangible shareholders' equity to ending tangible assets	9.07		%	9.17		%	9.34		%	9.15		%	8.79		%	9.07		%	8.79		%
Average shareholders' equity to average assets	15.53		%	15.43		%	15.22		%	15.01		%	14.84		%	15.30		%	13.89		%
Average tangible shareholders' equity to average tangible assets	9.07		%	9.35		%	9.26		%	8.95		%	8.66		%	9.16		%	8.40		%
REPURCHASE PROGRAM ⁽¹⁾
Shares repurchased	1,609,778			1,143,494			0			0			0			2,753,272			0
Average share repurchase price	$	24.13		$	23.94		N/A			N/A			N/A			$	24.05		N/A
Total cost of shares repurchased	$	38,846		$	27,372		N/A			N/A			N/A			$	66,218		N/A

⁽¹⁾Represents share repurchases as part of publicly announced plans.

N/A = Not applicable

FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 23, 2020

Attached files

FIRST FINANCIAL BANCORP /OH/ Reports