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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): January 26, 2023
 
FIRST FINANCIAL BANCORP.
(Exact name of registrant as specified in its charter)
 
Ohio001-34762 31-1042001
(State or other jurisdiction of
incorporation or organization)		(Commission File Number) (I.R.S. employer
identification number)
255 East Fifth Street, Suite 800Cincinnati,Ohio45202
(Address of principal executive offices)(Zip Code)
 
Registrant's telephone number, including area code: (877) 322-9530
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of exchange on which registered
Common stock, No par valueFFBCThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐


Item 2.02    Results of Operations and Financial Condition.

On January 26, 2023, First Financial Bancorp. (the "Company") issued its earnings press release that included its results of operations and financial condition for the twelve months and fourth quarter of 2022. A copy of the earnings press release is attached as Exhibit 99.1.

The Company also provided electronic presentation slides that will be used in connection with the earnings conference call. A copy of the electronic presentation slides is included in this Report as Exhibit 99.2 and will be available on the Company's website, www.bankatfirst.com.

The information set forth in this Current Report on Form 8-K (including the information in Exhibits 99.1 and 99.2 attached hereto) is being furnished to the Securities and Exchange Commission and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act")    , or otherwise subject to the liabilities under the Exchange Act. Such information shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 
Item 9.01    Financial Statements and Exhibits.

    (d)    Exhibits:
        
The following exhibits shall not be deemed to be "filed" for purposes of the Exchange Act:
    Exhibit No.    Description

    99.1 First Financial Bancorp. Press Release dated January 26, 2023
    99.2 First Financial Bancorp. presentation materials
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)






SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                        FIRST FINANCIAL BANCORP.

By: /s/ James M. Anderson
James M. Anderson
Executive Vice President and Chief Financial Officer
Date:January 26, 2023

                    




                                                Exhibit 99.1
First Financial Bancorp Announces Fourth Quarter and Full Year 2022 Financial Results and Quarterly Dividend

•Earnings per diluted share of $0.73
•Return on average assets of 1.63%
•Net interest margin on FTE basis(1) of 4.47%; 49 bp increase from linked quarter
•Loan growth of $501.5 million; 20.3% on an annualized basis
•Record quarterly revenue driven by increase in net interest income and record fee income
•Strong credit quality with net recoveries and declining nonperforming assets

Cincinnati, Ohio - January 26, 2023. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and twelve months ended December 31, 2022.

For the three months ended December 31, 2022, the Company reported net income of $69.1 million, or $0.73 per diluted common share. These results compare to net income of $55.7 million, or $0.59 per diluted common share, for the third quarter of 2022. For the twelve months ended December 31, 2022, First Financial had earnings per diluted share of $2.30 compared to $2.14 for the same period in 2021.

Return on average assets for the fourth quarter of 2022 was 1.63% while return on average tangible common equity was 29.93%(1). These compare to return on average assets of 1.35% and return on average tangible common equity of 22.29%(1) in the third quarter of 2022.

Fourth quarter 2022 highlights include:

•Strong loan growth when compared to linked quarter(2)
◦Loan balances increased $501.5 million compared to the third quarter
◦Growth of 20.3% on an annualized basis
◦Broad based portfolio growth; Summit contributed $129.7 million of the quarterly growth

•Net interest margin of 4.43%, or 4.47% on a fully tax-equivalent basis(1), exceeded expectations
◦49 bp increase to 4.47% from 3.98% in the third quarter due to higher asset yields resulting from higher interest rates
◦96 bp increase in loan yields offset 31 bp increase in cost of deposits
◦Stable core deposit balances; $58.0 million decline in total deposit balances, excluding $319.3 million increase in brokered CD's

•Record noninterest income of $56.0 million, or $55.1 million as adjusted(1)
◦Record foreign exchange income of $19.6 million; 66.7% increase from third quarter
◦Record leasing business income of $11.1 million; 56.1% increase from third quarter
◦Adjusted(1) for $0.9 million gain on investment securities


________________________________________________________________________________________
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.

(2) The consolidated balance sheets at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021 include assets acquired and liabilities assumed in the Summit Financial transaction. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. These fair value measurements are considered final as of December 31, 2022.


•Noninterest expenses of $124.4 million, or $117.3 million as adjusted(1)
◦Adjustments(1) include $6.4 million tax credit investment writedown and $0.7 million of other costs not expected to recur such as acquisition, severance and branch consolidation costs
◦Increase driven by elevated incentive costs tied to record foreign exchange income during the period
◦$2.5 million contribution to First Financial Foundation
◦Efficiency ratio of 58.2%; 55.1% as adjusted(1)

•Total Allowance for Credit Losses of $151.4 million; Total quarterly provision expense of $10.0 million
◦Loans and leases - ACL of $133.0 million; increased 2 bps to 1.29% of total loans
◦Unfunded Commitments - ACL of $18.4 million
◦Provision expense driven by loan growth and slower prepayment speeds
◦Net recoveries of 1 bp of average loans and leases
◦Nonperforming assets declined 16% compared to the linked quarter to 23 bps of total assets

•Regulatory capital ratios remain in excess of internal targets
◦Total capital ratio of 13.64%
◦Tier 1 common equity increased 1 bps to 10.83%
◦Tangible common equity increased 16 bps to 5.95%(1); 8.20%(1) excluding impact from AOCI
◦Tangible book value per share of $9.97(1)

Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on March 15, 2023 to shareholders of record as of March 1, 2023.

Archie Brown, President and CEO, commented on the quarter, “I am extremely pleased with our fourth quarter performance, which was exceptional on many levels. Earnings per diluted share were $0.73, return on assets was 1.63% and our adjusted(1) efficiency ratio improved to 55%. Diluted earnings per common share increased 24% from the third quarter, and we achieved record operating revenue of $214 million driven by a 15% increase in net interest income and a 32% increase in fee income. Rate increases continued to positively impact our asset sensitive balance sheet, with our net interest margin expanding by 49 basis points to 4.47% as increasing asset yields outpaced deposit costs. The growth in noninterest income was due to record quarters from Bannockburn and Summit, which more than offset softness in mortgage, client derivative fees and service charge income."

Mr. Brown continued, “We were also very pleased with $502 million of broad-based loan growth in the quarter, which is 20.3% on an annualized basis and included a $130 million increase in finance leases at Summit. We expect loan growth to moderate in the first quarter of 2023 due to seasonal and economic uncertainty. We experienced modest outflows in personal interest-bearing transaction accounts, however this was offset by seasonal inflows in our public fund and business deposits. The result was a stable core deposit base and a loan to deposit ratio of 81%."

Mr. Brown continued, “Loan quality remained strong across our portfolio, with nonperforming assets declining by 16% to 23 basis points of total assets and 1 basis point of net recoveries for the period. Our ACL to total loan coverage increased slightly during the fourth quarter due to slowing prepayments and the general outlook for the U.S. economy.”

Mr. Brown discussed full year results, “2022 was a great year for First Financial. Adjusted(1) earnings per share of $2.36 was a record, and increased 3% compared to 2021, resulting in a 1.36% adjusted(1) return on assets and an adjusted(1) efficiency ratio of 60%. Revenue increased 14% compared to the prior year to $709 million, which was a record for our Company. Net interest income grew by 15% with short-term rate increases providing a catalyst, while record fee income increased by 11% for the year as our acquisition of Summit Funding drove new fees and Bannockburn revenue grew by 23% to a record $55 million. Our recent acquisitions have diversified our income sources as we intended, and we are very pleased that they effectively insulated the Company from much of the fee pressure that impacted the broader industry in 2022.”

Mr. Brown continued, “Loan growth exceeded $1 billion for the year, representing an 11% increase from 2021. We were pleased that the growth was broad-based, and included strong contributions from Summit Funding, which we acquired at the end of 2021. Summit's originations exceeded $400 million for the year, which was an all time high for them and surpassed our expectations, contributing over 20% of the Company's overall loan growth.”

Mr. Brown commented on asset quality, “Asset Quality was very strong for the year. Net Charge-offs were 6 basis points of total loans, which was a 20 basis point decline compared to 26 basis points in 2021. In addition, nonperforming assets declined $20 million, or 34%, to 23 basis points of total assets.”

Mr. Brown concluded, “The outstanding performance we achieved this year is the direct result of our associates executing at a very high level. I want to thank them for their commitment to our clients, our communities and each other. While we are proud of our 2022 financial results, we believe we have further opportunity to improve our execution and are committed to doing so. As we look forward to 2023, we remain focused on delivering consistent, sustained, industry leading results.”


Full detail of the Company’s fourth quarter and full year 2022 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 27, 2023 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (844) 200-6205 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 329103. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (866) 813-9403 (U.S. toll free), (929) 458-6194 (U.S. local) and +44 204 525-0658 (all other locations), access code 347122. The recording will be available until February 10, 2023. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

Press Release and Additional Information on Website
This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company’s results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.

Forward-Looking Statements

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements.  Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements.  Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

•economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business;
•future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
•the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
•Management’s ability to effectively execute its business plans;
•mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
•the possibility that any of the anticipated benefits of the Company’s acquisitions will not be realized or will not be realized within the expected time period;
•the effect of changes in accounting policies and practices;
•changes in consumer spending, borrowing and saving and changes in unemployment;
•changes in customers’ performance and creditworthiness;
•the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;  

•current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
•the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
•our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
•financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
•the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
•the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
•a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
•the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
•our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2021, 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, 2022, the Company had $17.0 billion in assets, $10.3 billion in loans, $12.7 billion in deposits and $2.0 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.2 billion in assets under management as of December 31, 2022. The Company operated 132 full service banking centers as of December 31, 2022, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.


Contact Information
Investors/Analysts                    Media
Jamie Anderson                        Tim Condron
Chief Financial Officer                    Marketing Communications Manager
(513) 887-5400                        (513) 979-5796
[email protected]            [email protected]    


Selected Financial Information
December 31, 2022
(unaudited)

ContentsPage
Consolidated Financial Highlights2
Consolidated Quarterly Statements of Income3
Consolidated Quarterly Statements of Income4-5
Consolidated Statements of Condition6
Average Consolidated Statements of Condition7
Net Interest Margin Rate / Volume Analysis8-9
Credit Quality10
Capital Adequacy11



    
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,Twelve months ended,
Dec. 31,Sep. 30,June 30,Mar. 31,Dec. 31,Dec. 31,
2022202220222022202120222021
RESULTS OF OPERATIONS
Net income$69,086 $55,705 $51,520 $41,301 $46,945 $217,612 $205,160 
Net earnings per share - basic$0.74 $0.60 $0.55 $0.44 $0.51 $2.33 $2.16 
Net earnings per share - diluted$0.73 $0.59 $0.55 $0.44 $0.50 $2.30 $2.14 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 $0.92 $0.92 
KEY FINANCIAL RATIOS
Return on average assets1.63 %1.35 %1.28 %1.03 %1.16 %1.33 %1.28 %
Return on average shareholders' equity13.64 %10.58 %9.84 %7.53 %8.31 %10.34 %9.08 %
Return on average tangible shareholders' equity (1)
29.93 %22.29 %20.68 %14.93 %15.11 %21.62 %16.43 %
Net interest margin4.43 %3.93 %3.41 %3.11 %3.19 %3.73 %3.27 %
Net interest margin (fully tax equivalent) (1)(2)
4.47 %3.98 %3.45 %3.16 %3.23 %3.77 %3.31 %
Ending shareholders' equity as a percent of ending assets12.01 %12.00 %12.74 %13.35 %13.83 %12.01 %13.83 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
5.95 %5.79 %6.40 %6.95 %7.58 %5.95 %7.58 %
Risk-weighted assets (1)
7.32 %7.21 %8.09 %8.85 %9.91 %7.32 %9.91 %
Average shareholders' equity as a percent of average assets11.98 %12.75 %12.97 %13.75 %13.98 %12.85 %14.06 %
Average tangible shareholders' equity as a percent of
    average tangible assets (1)
5.84 %6.49 %6.62 %7.44 %8.20 %6.59 %8.29 %
Book value per share$21.51 $21.03 $21.90 $22.63 $23.99 $21.51 $23.99 
Tangible book value per share (1)
$9.97 $9.48 $10.27 $10.97 $12.26 $9.97 $12.26 
Common equity tier 1 ratio (3)
10.83 %10.82 %10.91 %10.87 %10.85 %10.83 %10.85 %
Tier 1 ratio (3)
11.17 %11.17 %11.28 %11.24 %11.22 %11.17 %11.22 %
Total capital ratio (3)
13.64 %13.73 %13.94 %13.97 %14.11 %13.64 %14.11 %
Leverage ratio (3)
8.89 %8.88 %8.76 %8.64 %8.70 %8.89 %8.70 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$10,059,119 $9,597,197 $9,367,820 $9,266,774 $9,283,227 $9,574,965 $9,640,235 
Investment securities3,705,304 4,003,472 4,118,287 4,308,059 4,343,513 4,032,046 4,113,240 
Interest-bearing deposits with other banks372,054 317,146 294,136 273,763 166,904 314,552 73,170 
  Total earning assets$14,136,477 $13,917,815 $13,780,243 $13,848,596 $13,793,644 $13,921,563 $13,826,645 
Total assets$16,767,598 $16,385,989 $16,185,978 $16,184,919 $16,036,417 $16,382,730 $16,072,360 
Noninterest-bearing deposits$4,225,192 $4,176,242 $4,224,842 $4,160,175 $4,191,457 $4,196,735 $4,005,034 
Interest-bearing deposits8,407,114 8,194,781 8,312,876 8,623,800 8,693,792 8,383,529 8,655,308 
  Total deposits$12,632,306 $12,371,023 $12,537,718 $12,783,975 $12,885,249 $12,580,264 $12,660,342 
Borrowings$1,489,088 $1,406,718 $1,079,596 $721,695 $396,743 $1,177,013 $647,223 
Shareholders' equity$2,009,564 $2,089,179 $2,099,670 $2,225,495 $2,241,820 $2,105,339 $2,259,807 
CREDIT QUALITY RATIOS
Allowance to ending loans1.29 %1.27 %1.25 %1.34 %1.42 %1.29 %1.42 %
Allowance to nonaccrual loans464.58 %341.61 %302.87 %273.09 %272.76 %464.58 %272.76 %
Allowance to nonperforming loans335.94 %262.09 %235.08 %231.98 %219.96 %335.94 %219.96 %
Nonperforming loans to total loans0.38 %0.48 %0.53 %0.58 %0.65 %0.38 %0.65 %
Nonaccrual loans to total loans0.28 %0.37 %0.41 %0.49 %0.52 %0.28 %0.52 %
Nonperforming assets to ending loans, plus OREO0.39 %0.48 %0.53 %0.58 %0.65 %0.39 %0.65 %
Nonperforming assets to total assets0.23 %0.28 %0.31 %0.33 %0.37 %0.23 %0.37 %
Classified assets to total assets0.75 %0.69 %0.74 %0.67 %0.64 %0.75 %0.64 %
Net charge-offs to average loans (annualized)(0.01)%0.07 %0.08 %0.10 %0.32 %0.06 %0.26 %
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(3) December 31, 2022 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
2

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,
20222021% Change20222021% Change
Interest income
  Loans and leases, including fees$152,299 $92,682 64.3 %$458,742 $385,535 19.0 %
  Investment securities
     Taxable30,248 20,993 44.1 %102,314 79,212 29.2 %
     Tax-exempt4,105 4,127 (0.5)%18,466 18,323 0.8 %
        Total investment securities interest34,353 25,120 36.8 %120,780 97,535 23.8 %
  Other earning assets3,262 71 N/M5,484 147 N/M
       Total interest income189,914 117,873 61.1 %585,006 483,217 21.1 %
Interest expense
  Deposits16,168 3,089 423.4 %28,140 14,435 94.9 %
  Short-term borrowings11,091 10 N/M19,132 198 N/M
  Long-term borrowings4,759 3,968 19.9 %18,591 16,466 12.9 %
      Total interest expense32,018 7,067 353.1 %65,863 31,099 111.8 %
      Net interest income157,896 110,806 42.5 %519,143 452,118 14.8 %
  Provision for credit losses-loans and leases 8,689 (9,525)(191.2)%6,731 (19,024)(135.4)%
  Provision for credit losses-unfunded commitments 1,341 1,799 (25.5)%4,982 903 451.7 %
      Net interest income after provision for credit losses147,866 118,532 24.7 %507,430 470,239 7.9 %
Noninterest income
  Service charges on deposit accounts6,406 8,645 (25.9)%28,062 31,876 (12.0)%
  Trust and wealth management fees5,648 6,038 (6.5)%23,506 23,780 (1.2)%
  Bankcard income3,736 3,602 3.7 %14,380 14,300 0.6 %
  Client derivative fees1,822 2,303 (20.9)%5,441 7,927 (31.4)%
  Foreign exchange income19,592 12,808 53.0 %54,965 44,793 22.7 %
  Leasing business income11,124 0 100.0 %31,574 0 100.0 %
  Net gains from sales of loans2,206 6,492 (66.0)%15,048 33,021 (54.4)%
  Net gain (loss) on sale of investment securities(393)(14)N/M(569)(759)(25.0)%
  Net gain (loss) on equity securities1,315 321 309.7 %(639)702 (191.0)%
  Other4,579 5,465 (16.2)%17,873 15,866 12.6 %
      Total noninterest income56,035 45,660 22.7 %189,641 171,506 10.6 %
Noninterest expenses
  Salaries and employee benefits73,621 62,170 18.4 %269,368 245,924 9.5 %
  Net occupancy5,434 5,332 1.9 %22,208 22,142 0.3 %
  Furniture and equipment3,234 3,161 2.3 %13,224 13,819 (4.3)%
  Data processing8,567 8,261 3.7 %33,662 31,363 7.3 %
  Marketing2,198 2,152 2.1 %8,744 7,983 9.5 %
  Communication690 677 1.9 %2,683 2,930 (8.4)%
  Professional services3,015 5,998 (49.7)%9,734 11,676 (16.6)%
  State intangible tax974 651 49.6 %4,285 4,256 0.7 %
  FDIC assessments2,173 1,453 49.6 %7,194 5,630 27.8 %
  Intangible amortization 2,573 2,401 7.2 %11,185 9,839 13.7 %
  Leasing business expense6,061 0 100.0 %20,363 0 100.0 %
  Other15,902 17,349 (8.3)%52,699 45,250 16.5 %
      Total noninterest expenses124,442 109,605 13.5 %455,349 400,812 13.6 %
Income before income taxes79,459 54,587 45.6 %241,722 240,933 0.3 %
Income tax expense (benefit)10,373 7,642 35.7 %24,110 35,773 (32.6)%
      Net income$69,086 $46,945 47.2 %$217,612 $205,160 6.1 %
ADDITIONAL DATA
Net earnings per share - basic$0.74 $0.51 $2.33 $2.16 
Net earnings per share - diluted$0.73 $0.50 $2.30 $2.14 
Dividends declared per share$0.23 $0.23 $0.92 $0.92 
Return on average assets1.63 %1.16 %1.33 %1.28 %
Return on average shareholders' equity13.64 %8.31 %10.34 %9.08 %
Interest income$189,914 $117,873 61.1 %$585,006 $483,217 21.1 %
Tax equivalent adjustment1,553 1,386 12.0 %6,357 6,091 4.4 %
   Interest income - tax equivalent191,467 119,259 60.5 %591,363 489,308 20.9 %
Interest expense32,018 7,067 353.1 %65,863 31,099 111.8 %
   Net interest income - tax equivalent$159,449 $112,192 42.1 %$525,500 $458,209 14.7 %
Net interest margin4.43 %3.19 %3.73 %3.27 %
Net interest margin (fully tax equivalent) (1)
4.47 %3.23 %3.77 %3.31 %
Full-time equivalent employees2,0701,994 
(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.
3

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2022
FourthThirdSecondFirstYear to% Change
QuarterQuarterQuarterQuarterDateLinked Qtr.
Interest income
  Loans and leases, including fees$152,299 $122,170 $97,091 $87,182 $458,742 24.7 %
  Investment securities
     Taxable30,248 26,331 23,639 22,096 102,314 14.9 %
     Tax-exempt4,105 5,014 4,916 4,431 18,466 (18.1)%
        Total investment securities interest34,353 31,345 28,555 26,527 120,780 9.6 %
  Other earning assets3,262 1,597 505 120 5,484 104.3 %
       Total interest income189,914 155,112 126,151 113,829 585,006 22.4 %
Interest expense
  Deposits16,168 6,386 2,963 2,623 28,140 153.2 %
  Short-term borrowings11,091 6,158 1,566 317 19,132 80.1 %
  Long-term borrowings4,759 4,676 4,612 4,544 18,591 1.8 %
      Total interest expense32,018 17,220 9,141 7,484 65,863 85.9 %
      Net interest income157,896 137,892 117,010 106,345 519,143 14.5 %
  Provision for credit losses-loans and leases 8,689 7,898 (4,267)(5,589)6,731 10.0 %
  Provision for credit losses-unfunded commitments 1,341 386 3,481 (226)4,982 247.4 %
      Net interest income after provision for credit losses147,866 129,608 117,796 112,160 507,430 14.1 %
Noninterest income
  Service charges on deposit accounts6,406 6,279 7,648 7,729 28,062 2.0 %
  Trust and wealth management fees5,648 5,487 6,311 6,060 23,506 2.9 %
  Bankcard income3,736 3,484 3,823 3,337 14,380 7.2 %
  Client derivative fees1,822 1,447 1,369 803 5,441 25.9 %
  Foreign exchange income19,592 11,752 13,470 10,151 54,965 66.7 %
  Leasing business income11,124 7,127 7,247 6,076 31,574 56.1 %
  Net gains from sales of loans2,206 3,729 5,241 3,872 15,048 (40.8)%
  Net gain (loss) on sale of investment securities(393)(179)0 3 (569)119.6 %
  Net gain (loss) on equity securities1,315 (701)(1,054)(199)(639)287.6 %
  Other4,579 4,109 5,723 3,462 17,873 11.4 %
      Total noninterest income56,035 42,534 49,778 41,294 189,641 31.7 %
Noninterest expenses
  Salaries and employee benefits73,621 66,808 64,992 63,947 269,368 10.2 %
  Net occupancy5,434 5,669 5,359 5,746 22,208 (4.1)%
  Furniture and equipment3,234 3,222 3,201 3,567 13,224 0.4 %
  Data processing8,567 8,497 8,334 8,264 33,662 0.8 %
  Marketing2,198 2,523 2,323 1,700 8,744 (12.9)%
  Communication690 657 670 666 2,683 5.0 %
  Professional services3,015 2,346 2,214 2,159 9,734 28.5 %
  State intangible tax974 1,090 1,090 1,131 4,285 (10.6)%
  FDIC assessments2,173 1,885 1,677 1,459 7,194 15.3 %
  Intangible amortization 2,573 2,783 2,915 2,914 11,185 (7.5)%
  Leasing business expense6,061 5,746 4,687 3,869 20,363 5.5 %
  Other15,902 23,842 5,572 7,383 52,699 (33.3)%
      Total noninterest expenses124,442 125,068 103,034 102,805 455,349 (0.5)%
Income before income taxes79,459 47,074 64,540 50,649 241,722 68.8 %
Income tax expense (benefit)10,373 (8,631)13,020 9,348 24,110 (220.2)%
      Net income$69,086 $55,705 $51,520 $41,301 $217,612 24.0 %
ADDITIONAL DATA
Net earnings per share - basic$0.74 $0.60 $0.55 $0.44 $2.33 
Net earnings per share - diluted$0.73 $0.59 $0.55 $0.44 $2.30 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.92 
Return on average assets1.63 %1.35 %1.28 %1.03 %1.33 %
Return on average shareholders' equity13.64 %10.58 %9.84 %7.53 %10.34 %
Interest income$189,914 $155,112 $126,151 $113,829 $585,006 22.4 %
Tax equivalent adjustment1,553 1,712 1,625 1,467 6,357 (9.3)%
   Interest income - tax equivalent191,467 156,824 127,776 115,296 591,363 22.1 %
Interest expense32,018 17,220 9,141 7,484 65,863 85.9 %
   Net interest income - tax equivalent$159,449 $139,604 $118,635 $107,812 $525,500 14.2 %
Net interest margin4.43 %3.93 %3.41 %3.11 %3.73 %
Net interest margin (fully tax equivalent) (1)
4.47 %3.98 %3.45 %3.16 %3.77 %
Full-time equivalent employees2,070 2,072 2,096 
2,050 (2)
(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.
(2) Includes 65 FTE from Summit acquisition.
4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2021
FourthThirdSecondFirstFull
QuarterQuarterQuarterQuarterYear
Interest income
  Loans and leases, including fees$92,682 $96,428 $97,494 $98,931 $385,535 
  Investment securities
     Taxable20,993 20,088 19,524 18,607 79,212 
     Tax-exempt4,127 4,282 4,871 5,043 18,323 
        Total investment securities interest25,120 24,370 24,395 23,650 97,535 
  Other earning assets71 23 25 28 147 
       Total interest income117,873 120,821 121,914 122,609 483,217 
Interest expense
  Deposits3,089 3,320 3,693 4,333 14,435 
  Short-term borrowings10 68 53 67 198 
  Long-term borrowings3,968 4,023 4,142 4,333 16,466 
      Total interest expense7,067 7,411 7,888 8,733 31,099 
      Net interest income110,806 113,410 114,026 113,876 452,118 
  Provision for credit losses-loans and leases (9,525)(8,193)(4,756)3,450 (19,024)
  Provision for credit losses-unfunded commitments 1,799 (1,951)517 538 903 
      Net interest income after provision for credit losses118,532 123,554 118,265 109,888 470,239 
Noninterest income
  Service charges on deposit accounts8,645 8,548 7,537 7,146 31,876 
  Trust and wealth management fees6,038 5,896 6,216 5,630 23,780 
  Bankcard income3,602 3,838 3,732 3,128 14,300 
  Client derivative fees2,303 2,273 1,795 1,556 7,927 
  Foreign exchange income12,808 9,191 12,037 10,757 44,793 
  Leasing business income0 0 0 0 0 
  Net gains from sales of loans6,492 8,586 8,489 9,454 33,021 
  Net gain (loss) on sale of investment securities(14)(314)(265)(166)(759)
  Net gain (loss) on equity securities321 108 161 112 702 
  Other5,465 4,411 3,285 2,705 15,866 
      Total noninterest income45,660 42,537 42,987 40,322 171,506 
Noninterest expenses
  Salaries and employee benefits62,170 61,717 60,784 61,253 245,924 
  Net occupancy5,332 5,571 5,535 5,704 22,142 
  Furniture and equipment3,161 3,318 3,371 3,969 13,819 
  Data processing8,261 7,951 7,864 7,287 31,363 
  Marketing2,152 2,435 2,035 1,361 7,983 
  Communication677 669 746 838 2,930 
  Professional services5,998 2,199 2,029 1,450 11,676 
  State intangible tax651 1,202 1,201 1,202 4,256 
  FDIC assessments1,453 1,466 1,362 1,349 5,630 
  Intangible amortization 2,401 2,479 2,480 2,479 9,839 
  Leasing business expense0 0 0 0 0 
  Other17,349 10,051 12,236 5,614 45,250 
      Total noninterest expenses109,605 99,058 99,643 92,506 400,812 
Income before income taxes54,587 67,033 61,609 57,704 240,933 
Income tax expense (benefit)7,642 7,021 10,721 10,389 35,773 
      Net income$46,945 $60,012 $50,888 $47,315 $205,160 
ADDITIONAL DATA
Net earnings per share - basic$0.51 $0.64 $0.53 $0.49 $2.16 
Net earnings per share - diluted$0.50 $0.63 $0.52 $0.48 $2.14 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.92 
Return on average assets1.16 %1.49 %1.26 %1.20 %1.28 %
Return on average shareholders' equity8.31 %10.53 %9.02 %8.44 %9.08 %
Interest income$117,873 $120,821 $121,914 $122,609 $483,217 
Tax equivalent adjustment1,386 1,434 1,619 1,652 6,091 
   Interest income - tax equivalent119,259 122,255 123,533 124,261 489,308 
Interest expense7,067 7,411 7,888 8,733 31,099 
   Net interest income - tax equivalent$112,192 $114,844 $115,645 $115,528 $458,209 
Net interest margin3.19 %3.28 %3.27 %3.35 %3.27 %
Net interest margin (fully tax equivalent) (1)
3.23 %3.32 %3.31 %3.40 %3.31 %
Full-time equivalent employees1,994 2,026 2,053 2,063 
(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.
5

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Dec. 31,Sep. 30,June 30,Mar. 31,Dec. 31,% Change% Change
20222022202220222021Linked Qtr.Comp Qtr.
ASSETS
     Cash and due from banks$207,501 $195,553 $217,481 $214,571 $220,031 6.1 %(5.7)%
     Interest-bearing deposits with other banks388,182 338,978 270,042 243,004 214,811 14.5 %80.7 %
     Investment securities available-for-sale3,409,648 3,531,353 3,843,580 3,957,882 4,207,846 (3.4)%(19.0)%
     Investment securities held-to-maturity84,021 85,823 88,057 92,597 98,420 (2.1)%(14.6)%
     Other investments143,160 138,767 132,151 114,563 102,971 3.2 %39.0 %
     Loans held for sale7,918 10,684 22,044 12,670 29,482 (25.9)%(73.1)%
     Loans and leases
       Commercial and industrial3,410,272 3,139,219 2,927,175 2,800,209 2,720,028 8.6 %25.4 %
       Lease financing236,124 176,072 146,639 125,867 109,624 34.1 %115.4 %
       Construction real estate512,050 489,446 449,734 479,744 455,894 4.6 %12.3 %
       Commercial real estate4,052,759 3,976,345 4,007,037 4,031,484 4,226,614 1.9 %(4.1)%
       Residential real estate1,092,265 1,024,596 965,387 913,838 896,069 6.6 %21.9 %
       Home equity733,791 737,318 725,700 707,973 708,399 (0.5)%3.6 %
       Installment209,895 202,267 146,680 132,197 119,454 3.8 %75.7 %
       Credit card51,815 52,173 52,065 50,305 52,217 (0.7)%(0.8)%
          Total loans10,298,971 9,797,436 9,420,417 9,241,617 9,288,299 5.1 %10.9 %
       Less:
          Allowance for credit losses (132,977)(124,096)(117,885)(124,130)(131,992)7.2 %0.7 %
                Net loans 10,165,994 9,673,340 9,302,532 9,117,487 9,156,307 5.1 %11.0 %
     Premises and equipment189,080 189,067 191,099 190,975 193,040 0.0 %(2.1)%
     Operating leases91,738 84,851 82,659 61,927 60,811 8.1 %50.9 %
     Goodwill 1,001,507 998,422 999,959 999,959 1,000,749 0.3 %0.1 %
     Other intangibles93,919 96,528 99,019 101,673 104,367 (2.7)%(10.0)%
     Accrued interest and other assets1,220,648 1,280,427 995,091 901,842 940,306 (4.7)%29.8 %
       Total Assets$17,003,316 $16,623,793 $16,243,714 $16,009,150 $16,329,141 2.3 %4.1 %
LIABILITIES
     Deposits
       Interest-bearing demand$3,037,153 $2,980,465 $3,096,365 $3,246,646 $3,198,745 1.9 %(5.1)%
       Savings3,828,139 3,980,020 4,029,717 4,188,867 4,157,374 (3.8)%(7.9)%
       Time1,700,705 1,242,412 1,026,918 1,121,966 1,330,263 36.9 %27.8 %
          Total interest-bearing deposits8,565,997 8,202,897 8,153,000 8,557,479 8,686,382 4.4 %(1.4)%
       Noninterest-bearing4,135,180 4,137,038 4,124,111 4,261,429 4,185,572 0.0 %(1.2)%
          Total deposits12,701,177 12,339,935 12,277,111 12,818,908 12,871,954 2.9 %(1.3)%
     Federal funds purchased and securities sold
         under agreements to repurchase0 3,535 0 0 51,203 100.0 %(100.0)%
     FHLB short-term borrowings1,130,000 972,600 896,000 185,000 225,000 16.2 %402.2 %
     Other157,156 184,912 152,226 57,247 20,000 (15.0)%685.8 %
          Total short-term borrowings1,287,156 1,161,047 1,048,226 242,247 296,203 10.9 %334.6 %
     Long-term debt346,672 355,116 358,578 379,840 409,832 (2.4)%(15.4)%
          Total borrowed funds1,633,828 1,516,163 1,406,804 622,087 706,035 7.8 %131.4 %
     Accrued interest and other liabilities626,938 773,563 491,129 430,710 492,210 (19.0)%27.4 %
       Total Liabilities14,961,943 14,629,661 14,175,044 13,871,705 14,070,199 2.3 %6.3 %
SHAREHOLDERS' EQUITY
     Common stock1,634,605 1,631,696 1,637,237 1,634,903 1,640,358 0.2 %(0.4)%
     Retained earnings968,237 920,943 887,006 857,178 837,473 5.1 %15.6 %
     Accumulated other comprehensive income (loss)(358,663)(354,570)(243,328)(142,477)(433)1.2 %N/M
     Treasury stock, at cost(202,806)(203,937)(212,245)(212,159)(218,456)(0.6)%(7.2)%
       Total Shareholders' Equity2,041,373 1,994,132 2,068,670 2,137,445 2,258,942 2.4 %(9.6)%
       Total Liabilities and Shareholders' Equity$17,003,316 $16,623,793 $16,243,714 $16,009,150 $16,329,141 2.3 %4.1 %

6

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly AveragesYear-to-Date Averages
Dec. 31,Sep. 30,June 30,Mar. 31,Dec. 31,Dec. 31,
2022202220222022202120222021
ASSETS
     Cash and due from banks$218,216 $228,068 $248,463 $241,271 $253,091 $233,925 $242,201 
     Interest-bearing deposits with other banks372,054 317,146 294,136 273,763 166,904 314,552 73,170 
     Investment securities3,705,304 4,003,472 4,118,287 4,308,059 4,343,513 4,032,046 4,113,240 
     Loans held for sale8,639 12,283 15,446 15,589 24,491 12,968 27,711 
     Loans and leases
       Commercial and industrial3,249,252 3,040,547 2,884,373 2,736,613 2,552,686 2,979,273 2,790,733 
       Lease financing203,790 158,667 134,334 115,703 67,537 153,380 67,822 
       Construction real estate501,787 469,489 460,609 474,278 460,588 476,597 575,883 
       Commercial real estate4,028,944 3,969,935 4,025,493 4,139,072 4,391,328 4,040,365 4,379,325 
       Residential real estate1,066,859 998,476 936,165 903,567 917,399 976,775 943,981 
       Home equity735,039 728,791 716,219 703,714 709,954 721,048 713,521 
       Installment208,484 164,063 140,145 125,579 106,188 159,807 91,642 
       Credit card56,325 54,946 55,036 52,659 53,056 54,752 49,617 
          Total loans10,050,480 9,584,914 9,352,374 9,251,185 9,258,736 9,561,997 9,612,524 
       Less:
          Allowance for credit losses (127,541)(119,000)(123,950)(129,601)(144,756)(125,001)(162,477)
                Net loans 9,922,939 9,465,914 9,228,424 9,121,584 9,113,980 9,436,996 9,450,047 
     Premises and equipment189,342 190,738 191,895 192,832 192,941 191,191 198,425 
     Operating leases88,365 83,970 73,862 61,297 659 76,967 166 
     Goodwill 998,575 999,690 999,958 1,000,238 938,453 999,611 937,943 
     Other intangibles95,256 97,781 100,354 103,033 71,006 99,081 73,496 
     Accrued interest and other assets1,168,908 986,927 915,153 867,253 931,379 985,393 955,961 
       Total Assets$16,767,598 $16,385,989 $16,185,978 $16,184,919 $16,036,417 $16,382,730 $16,072,360 
LIABILITIES
     Deposits
       Interest-bearing demand$3,103,091 $3,105,547 $3,180,846 $3,246,919 $3,069,416 $3,158,560 $2,988,359 
       Savings3,943,342 4,036,565 4,076,380 4,145,615 4,195,504 4,049,883 4,065,654 
       Time1,360,681 1,052,669 1,055,650 1,231,266 1,428,872 1,175,086 1,601,295 
          Total interest-bearing deposits8,407,114 8,194,781 8,312,876 8,623,800 8,693,792 8,383,529 8,655,308 
       Noninterest-bearing4,225,192 4,176,242 4,224,842 4,160,175 4,191,457 4,196,735 4,005,034 
          Total deposits12,632,306 12,371,023 12,537,718 12,783,975 12,885,249 12,580,264 12,660,342 
     Federal funds purchased and securities sold
          under agreements to repurchase16,167 32,637 24,229 45,358 79,382 29,526 160,967 
     FHLB short-term borrowings944,320 892,786 586,846 257,800 2,445 672,928 43,371 
     Other 184,439 131,237 109,353 33,297 654 115,041 165 
          Total short-term borrowings1,144,926 1,056,660 720,428 336,455 82,481 817,495 204,503 
     Long-term debt344,162 350,058 359,168 385,240 314,262 359,518 442,720 
       Total borrowed funds1,489,088 1,406,718 1,079,596 721,695 396,743 1,177,013 647,223 
     Accrued interest and other liabilities636,640 519,069 468,994 453,754 512,605 520,114 504,988 
       Total Liabilities14,758,034 14,296,810 14,086,308 13,959,424 13,794,597 14,277,391 13,812,553 
SHAREHOLDERS' EQUITY
     Common stock1,632,941 1,631,078 1,635,990 1,638,321 1,637,828 1,634,558 1,636,126 
     Retained earnings941,987 899,524 866,910 841,652 822,500 887,826 772,063 
     Accumulated other comprehensive loss(361,284)(236,566)(190,949)(38,448)8,542 (207,778)28,317 
     Treasury stock, at cost(204,080)(204,857)(212,281)(216,030)(227,050)(209,267)(176,699)
       Total Shareholders' Equity2,009,564 2,089,179 2,099,670 2,225,495 2,241,820 2,105,339 2,259,807 
       Total Liabilities and Shareholders' Equity$16,767,598 $16,385,989 $16,185,978 $16,184,919 $16,036,417 $16,382,730 $16,072,360 

7

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 Quarterly AveragesYear-to-Date Averages
December 31, 2022September 30, 2022December 31, 2021December 31, 2022December 31, 2021
BalanceInterestYieldBalanceInterestYieldBalanceInterestYieldBalanceYieldBalanceYield
Earning assets
    Investments:
      Investment securities$3,705,304 $34,353 3.68 %$4,003,472 $31,345 3.11 %$4,343,513 $25,120 2.29 %$4,032,046 3.00 %$4,113,240 2.37 %
      Interest-bearing deposits with other banks372,054 3,262 3.48 %317,146 1,597 2.00 %166,904 71 0.17 %314,552 1.74 %73,170 0.20 %
    Gross loans (1)
10,059,119 152,299 6.01 %9,597,197 122,170 5.05 %9,283,227 92,682 3.96 %9,574,965 4.79 %9,640,235 4.00 %
       Total earning assets14,136,477 189,914 5.33 %13,917,815 155,112 4.42 %13,793,644 117,873 3.39 %13,921,563 4.20 %13,826,645 3.49 %
Nonearning assets
    Allowance for credit losses(127,541)(119,000)(144,756)(125,001)(162,477)
    Cash and due from banks218,216 228,068 253,091 233,925 242,201 
    Accrued interest and other assets2,540,446 2,359,106 2,134,438 2,352,243 2,165,991 
       Total assets$16,767,598 $16,385,989 $16,036,417 $16,382,730 $16,072,360 
Interest-bearing liabilities
    Deposits:
      Interest-bearing demand$3,103,091 $5,195 0.66 %$3,105,547 $2,404 0.31 %$3,069,416 $461 0.06 %$3,158,560 0.28 %$2,988,359 0.06 %
      Savings3,943,342 4,819 0.48 %4,036,565 2,199 0.22 %4,195,504 901 0.09 %4,049,883 0.22 %4,065,654 0.10 %
      Time1,360,681 6,154 1.79 %1,052,669 1,783 0.67 %1,428,872 1,727 0.48 %1,175,086 0.88 %1,601,295 0.52 %
    Total interest-bearing deposits8,407,114 16,168 0.76 %8,194,781 6,386 0.31 %8,693,792 3,089 0.14 %8,383,529 0.34 %8,655,308 0.17 %
    Borrowed funds
      Short-term borrowings1,144,926 11,091 3.84 %1,056,660 6,158 2.31 %82,481 10 0.05 %817,495 2.34 %204,503 0.10 %
      Long-term debt344,162 4,759 5.49 %350,058 4,676 5.30 %314,262 3,968 5.01 %359,518 5.17 %442,720 3.72 %
        Total borrowed funds1,489,088 15,850 4.22 %1,406,718 10,834 3.06 %396,743 3,978 3.98 %1,177,013 3.20 %647,223 2.57 %
       Total interest-bearing liabilities9,896,202 32,018 1.28 %9,601,499 17,220 0.71 %9,090,535 7,067 0.31 %9,560,542 0.69 %9,302,531 0.33 %
Noninterest-bearing liabilities
    Noninterest-bearing demand deposits4,225,192 4,176,242 4,191,457 4,196,735 4,005,034 
    Other liabilities636,640 519,069 512,605 520,114 504,988 
    Shareholders' equity2,009,564 2,089,179 2,241,820 2,105,339 2,259,807 
       Total liabilities & shareholders' equity$16,767,598 $16,385,989 $16,036,417 $16,382,730 $16,072,360 
Net interest income $157,896 $137,892 $110,806 $519,143 $452,118 
Net interest spread 4.05 %3.71 %3.08 %3.51 %3.16 %
Net interest margin 4.43 %3.93 %3.19 %3.73 %3.27 %
Tax equivalent adjustment0.04 %0.05 %0.04 %0.04 %0.04 %
Net interest margin (fully tax equivalent)4.47 %3.98 %3.23 %3.77 %3.31 %
(1) Loans held for sale and nonaccrual loans are included in gross loans.
8

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
 Linked Qtr. Income Variance Comparable Qtr. Income VarianceYear-to-Date Income Variance
RateVolumeTotalRateVolumeTotalRateVolumeTotal
Earning assets
    Investment securities$5,772 $(2,764)$3,008 $15,150 $(5,917)$9,233 $25,677 $(2,432)$23,245 
    Interest-bearing deposits with other banks1,184 481 1,665 1,392 1,799 3,191 1,129 4,208 5,337 
    Gross loans (2)
23,135 6,994 30,129 47,870 11,747 59,617 76,334 (3,127)73,207 
       Total earning assets30,091 4,711 34,802 64,412 7,629 72,041 103,140 (1,351)101,789 
Interest-bearing liabilities
    Total interest-bearing deposits$9,374 $408 $9,782 $13,630 $(551)$13,079 $14,617 $(912)$13,705 
    Borrowed funds
    Short-term borrowings4,078 855 4,933 789 10,292 11,081 4,588 14,346 18,934 
    Long-term debt165 (82)83 378 413 791 6,427 (4,302)2,125 
       Total borrowed funds4,243 773 5,016 1,167 10,705 11,872 11,015 10,044 21,059 
       Total interest-bearing liabilities13,617 1,181 14,798 14,797 10,154 24,951 25,632 9,132 34,764 
          Net interest income (1)
$16,474 $3,530 $20,004 $49,615 $(2,525)$47,090 $77,508 $(10,483)$67,025 
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.


9

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
Dec. 31,Sep. 30,June 30,Mar. 31,Dec. 31,Full YearFull Year
2022202220222022202120222021
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period$124,096 $117,885 $124,130 $131,992 $148,903 $131,992 $175,679 
 Purchase accounting ACL for PCD0 0 0 0 17 0 17 
  Provision for credit losses8,689 7,898 (4,267)(5,589)(9,525)6,731 (19,024)
  Gross charge-offs
    Commercial and industrial334 1,947 773 2,845 1,364 5,899 15,620 
    Lease financing0 13 8 131 0 152 0 
    Construction real estate0 0 0 0 1,496 0 1,498 
    Commercial real estate245 3 3,419 0 9,150 3,667 13,471 
    Residential real estate79 119 4 22 6 224 127 
    Home equity72 45 22 21 22 160 1,073 
    Installment717 294 361 177 184 1,549 334 
    Credit card212 237 212 246 149 907 780 
      Total gross charge-offs 1,659 2,658 4,799 3,442 12,371 12,558 32,903 
  Recoveries
    Commercial and industrial293 90 177 379 201 939 1,612 
    Lease financing0 13 3 33 0 49 0 
    Construction real estate0 0 0 0 0 0 3 
    Commercial real estate1,327 561 2,194 222 4,292 4,304 4,785 
    Residential real estate15 35 34 90 74 174 228 
    Home equity88 185 360 265 303 898 1,223 
    Installment68 29 47 21 27 165 151 
    Credit card60 58 6 159 71 283 221 
      Total recoveries1,851 971 2,821 1,169 4,968 6,812 8,223 
  Total net charge-offs(192)1,687 1,978 2,273 7,403 5,746 24,680 
Ending allowance for credit losses$132,977 $124,096 $117,885 $124,130 $131,992 $132,977 $131,992 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
  Commercial and industrial0.01 %0.24 %0.08 %0.37 %0.18 %0.17 %0.50 %
  Lease financing0.00 %0.00 %0.01 %0.34 %0.00 %0.07 %0.00 %
  Construction real estate0.00 %0.00 %0.00 %0.00 %1.29 %0.00 %0.26 %
  Commercial real estate(0.11)%(0.06)%0.12 %(0.02)%0.44 %(0.02)%0.20 %
  Residential real estate0.02 %0.03 %(0.01)%(0.03)%(0.03)%0.01 %(0.01)%
  Home equity(0.01)%(0.08)%(0.19)%(0.14)%(0.16)%(0.10)%(0.02)%
  Installment1.24 %0.64 %0.90 %0.50 %0.59 %0.87 %0.20 %
  Credit card1.07 %1.29 %1.50 %0.67 %0.58 %1.14 %1.13 %
     Total net charge-offs(0.01)%0.07 %0.08 %0.10 %0.32 %0.06 %0.26 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
  Nonaccrual loans (1)
    Commercial and industrial$8,242 $8,719 $11,675 $14,390 $17,362 $8,242 $17,362 
    Lease financing178 199 217 249 203 178 203 
    Construction real estate0 0 0 0 0 0 0 
    Commercial real estate5,786 13,435 14,650 19,843 19,512 5,786 19,512 
    Residential real estate10,691 10,250 8,879 7,432 8,305 10,691 8,305 
    Home equity3,123 3,445 3,331 3,377 2,922 3,123 2,922 
    Installment603 279 170 163 88 603 88 
      Nonaccrual loans28,623 36,327 38,922 45,454 48,392 28,623 48,392 
  Accruing troubled debt restructurings (TDRs)10,960 11,022 11,225 8,055 11,616 10,960 11,616 
     Total nonperforming loans39,583 47,349 50,147 53,509 60,008 39,583 60,008 
  Other real estate owned (OREO)191 22 22 72 98 191 98 
     Total nonperforming assets39,774 47,371 50,169 53,581 60,106 39,774 60,106 
  Accruing loans past due 90 days or more857 139 142 180 137 857 137 
     Total underperforming assets$40,631 $47,510 $50,311 $53,761 $60,243 $40,631 $60,243 
Total classified assets$128,137 $114,956 $119,769 $106,839 $104,815 $128,137 $104,815 
CREDIT QUALITY RATIOS
Allowance for credit losses to
     Nonaccrual loans464.58 %341.61 %302.87 %273.09 %272.76 %464.58 %272.76 %
     Nonperforming loans335.94 %262.09 %235.08 %231.98 %219.96 %335.94 %219.96 %
     Total ending loans1.29 %1.27 %1.25 %1.34 %1.42 %1.29 %1.42 %
Nonperforming loans to total loans0.38 %0.48 %0.53 %0.58 %0.65 %0.38 %0.65 %
Nonaccrual loans to total loans0.28 %0.37 %0.41 %0.49 %0.52 %0.28 %0.52 %
Nonperforming assets to
     Ending loans, plus OREO0.39 %0.48 %0.53 %0.58 %0.65 %0.39 %0.65 %
     Total assets0.23 %0.28 %0.31 %0.33 %0.37 %0.23 %0.37 %
Nonperforming assets, excluding accruing TDRs to
     Ending loans, plus OREO0.28 %0.37 %0.41 %0.49 %0.52 %0.28 %0.52 %
     Total assets0.17 %0.22 %0.24 %0.28 %0.30 %0.17 %0.30 %
Classified assets to total assets0.75 %0.69 %0.74 %0.67 %0.64 %0.75 %0.64 %
(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million, $12.8 million, $9.5 million, $16.2 million, and $16.0 million, as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Twelve months ended,
Dec. 31,Sep. 30,June 30,Mar. 31,Dec. 31,Dec. 31,Dec. 31,
2022202220222022202120222021
PER COMMON SHARE
Market Price
  High$26.68 $23.75 $23.03 $26.73 $25.79 $26.73 $26.40 
  Low$21.56 $19.02 $19.09 $22.92 $22.89 $19.02 $17.62 
  Close$24.23 $21.08 $19.40 $23.05 $24.38 $24.23 $24.38 
Average shares outstanding - basic93,590,674 93,582,250 93,555,131 93,383,932 92,903,900 93,528,712 95,034,690 
Average shares outstanding - diluted94,831,788 94,793,766 94,449,817 94,263,925 93,761,909 94,586,851 95,897,385 
Ending shares outstanding94,891,099 94,833,964 94,448,792 94,451,496 94,149,240 94,891,099 94,149,240 
Total shareholders' equity$2,041,373 $1,994,132 $2,068,670 $2,137,445 $2,258,942 $2,041,373 $2,258,942 
REGULATORY CAPITALPreliminaryPreliminary
Common equity tier 1 capital$1,399,420 $1,348,413 $1,307,259 $1,272,115 $1,262,789 $1,399,420 $1,262,789 
Common equity tier 1 capital ratio10.83 %10.82 %10.91 %10.87 %10.85 %10.83 %10.85 %
Tier 1 capital$1,443,698 $1,392,565 $1,351,287 $1,316,020 $1,306,571 $1,443,698 $1,306,571 
Tier 1 ratio11.17 %11.17 %11.28 %11.24 %11.22 %11.17 %11.22 %
Total capital$1,762,971 $1,711,741 $1,670,367 $1,635,003 $1,642,549 $1,762,971 $1,642,549 
Total capital ratio13.64 %13.73 %13.94 %13.97 %14.11 %13.64 %14.11 %
Total capital in excess of minimum requirement$406,032 $402,662 $412,167 $405,931 $420,118 $406,032 $420,118 
Total risk-weighted assets$12,923,233 $12,467,422 $11,982,860 $11,705,447 $11,642,201 $12,923,233 $11,642,201 
Leverage ratio8.89 %8.88 %8.76 %8.64 %8.70 %8.89 %8.70 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets12.01 %12.00 %12.74 %13.35 %13.83 %12.01 %13.83 %
Ending tangible shareholders' equity to ending tangible assets (1)
5.95 %5.79 %6.40 %6.95 %7.58 %5.95 %7.58 %
Average shareholders' equity to average assets11.98 %12.75 %12.97 %13.75 %13.98 %12.85 %14.06 %
Average tangible shareholders' equity to average tangible assets (1)
5.84 %6.49 %6.62 %7.44 %8.20 %6.59 %8.29 %
REPURCHASE PROGRAM (2)
Shares repurchased0 0 0 0 0 0 4,633,355 
Average share repurchase priceN/AN/AN/AN/AN/AN/A$23.33 
Total cost of shares repurchasedN/AN/AN/AN/AN/AN/A$108,077 
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
(2) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable
11
earnings presentation • Fourth Quarter 2022 Exhibit 99.2

 
forward looking statements disclosure 2 Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements. As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: • economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; • future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses; • the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iv) management’s ability to effectively execute its business plans; • mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; • the possibility that any of the anticipated benefits of the Company’s acquisitions will not be realized or will not be realized within the expected time period; • the effect of changes in accounting policies and practices; • changes in consumer spending, borrowing and saving and changes in unemployment; • changes in customers’ performance and creditworthiness; • the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; • current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; • the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; • our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

 
forward looking statements disclosure 3 • financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; • the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; • the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; • a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; • the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and • our ability to develop and execute effective business plans and strategies. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2021, 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.

 
4Q 2022 results 129th Consecutive Quarter of Profitability 4 • EOP assets increased $379.5 million compared to the linked quarter to $17.0 billion • EOP loans increased $501.5 million compared to the linked quarter to $10.3 billion • Average deposits increased $261.3 million compared to the linked quarter to $12.6 billion • EOP investment securities decreased $119.1 million compared to the linked quarter Balance Sheet Profitability Asset Quality Income Statement Capital • Noninterest income - $56.0 million; $55.1 million as adjusted1 • Noninterest expense - $124.4 million; $117.3 million as adjusted1 • Efficiency ratio - 58.17%. Adjusted1 efficiency ratio - 55.08% • Effective tax rate of 13.1%. Adjusted1 effective tax rate of 19.5% • Net interest income - $157.9 million • Net interest margin of 4.43% on a GAAP basis; 4.47% on a fully tax equivalent basis1 • Net income - $69.1 million or $0.73 per diluted share. Adjusted1 net income - $68.9 million or $0.73 per diluted share • Return on average assets - 1.63%. • Return on average shareholders’ equity - 13.64%. Adjusted1 return on average shareholders’ equity - 13.61% • Return on average tangible common equity - 29.93%1. Adjusted1 return on average tangible common equity - 29.86% • Provision expense - $10.0 million • Net charge-offs – ($0.2) million. NCOs / Avg. Loans – (0.01%) annualized • Classified Assets / Total Assets - 0.75% • NPA / Total Assets – 0.23% • ACL / Total Loans – 1.29% • Total capital ratio – 13.64% • Tier 1 common equity ratio – 10.83% • Tangible common equity ratio – 5.95%. Adjusted1 Tangible common equity ratio– 8.20% • Tangible book value per share – $9.97 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation.

 
4Q 2022 highlights • Quarterly earnings driven by strong net interest margin and record fee income • Adjusted1 earnings per share - $0.73 • Adjusted1 return on assets - 1.63% • Adjusted1 pre-tax, pre-provision return on assets – 2.26% • Adjusted1 return on average tangible common equity – 29.86% • End of period loan balances increased with strong origination volumes across the portfolio • EOP loan balances increased $501.5 million compared to the linked quarter; 20.3% on an annualized basis • Broad based portfolio growth included a $150.2 million increase in C&I; a $129.7 million increase in finance leases; a $111.2 million increase in ICRE; a $65.4 million increase in residential mortgage loans, and a $60.4 million increase in Oak Street • Total average deposit balances increased $261.3 million, or 8.4% annualized • Stable core deposit balances; $58.0 million decline in total deposit balances, excluding $319.3 million increase in brokered CD’s • $49.0 million in noninterest bearing deposit growth from linked quarter • Average noninterest bearing deposits were 33.4% of average total deposits • Accelerating 4.47% net interest margin (FTE) • 49 bp increase from third quarter driven by increase in interest rates and asset sensitive balance sheet • 96 bp increase in loan yields offset 31 bp increase in cost of deposits • Adjusted1 noninterest income of $55.1 million • Record foreign exchange income of $19.6 million, an increase of $7.8 million, or 66.7%, from linked quarter • Record leasing business revenue of $11.1 million, an increase of $4.0 million, or 56.1% compared to linked quarter • Adjusted1 for $0.9 million gain on investment securities 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. 2The fair value measurements of assets acquired and liabilities assumed in the Summit acquisition are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. These fair value measurements are considered final as of December 31, 2022. 5

 
4Q 2022 highlights • Adjusted1 noninterest expense of $117.3 million • Adjusted1 for $6.4 million in tax credit investment writedowns and $0.7 million of other costs not expected to recur such as acquisition, severance and branch consolidation costs • Increase compared to linked quarter driven by elevated incentive costs tied to record foreign exchange income and overall Company performance during the period • $2.5 million contribution to First Financial Foundation • Efficiency ratio of 58.2%; 55.1% as adjusted1 • Allowance for credit loss (ACL) and provision expense increased compared to linked quarter • Total ACL of $151.4 million; provision expense of $10.0 million o Loans and leases - ACL of $133.0 million; 1.29% of total loans o Unfunded Commitments - ACL of $18.4 million • Increase in provision expense driven by loan grown, slowing prepayments and economic forecasts • NPA to total assets of 0.23% • Net recoveries for the quarter of 1 bp of average loans and leases • Nonaccrual loans of $28.6 million; $7.7 million, or 21.2%, decline compared to linked quarter • Regulatory capital ratios in excess of internal targets • Total capital ratio of 13.64% • Tier 1 common equity of 10.83%; 1 basis point increase from linked quarter • Tangible book value increased by $0.49 to $9.97 due to strong earnings • Tangible common equity increased 16 bps to 5.95%; 8.20%1 excluding ($358.7) million of AOCI • No shares repurchased in fourth quarter 6 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. 2The fair value measurements of assets acquired and liabilities assumed in the Summit acquisition are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. These fair value measurements are considered final as of December 31, 2022. .

 
adjusted net income1 7 The table below lists certain adjustments that the Company believes are significant to understanding its quarterly performance. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. All dollars shown in thousands, except per share amounts As Reported Adjusted 1 As Reported Adjusted 1 Net interest income 157,896$ 157,896$ 137,892$ 137,892$ Provision for credit losses-loans and leases 8,689$ 8,689$ 7,898$ 7,898$ Provision for credit losses-unfunded commitments 1,341$ 1,341$ 386$ 386$ Noninterest income 56,035$ 56,035$ 42,534$ 42,534$ less: gains (losses) on investment securities - 922 A - (880) A Total noninterest income 56,035$ 55,113$ 42,534$ 43,414$ Noninterest expense 124,442$ 124,442$ 125,068$ 125,068$ less: tax credit investment - 6,406 A - 17,212 A less: Summit acquistion costs - 149 A - 76 A less: other - 558 A - 1,671 A Total noninterest expense 124,442$ 117,329$ 125,068$ 106,109$ Income before income taxes 79,459$ 85,650$ 47,074$ 66,913$ Income tax expense 10,373$ 10,373$ (8,631)$ (8,631)$ plus: after-tax impact of tax credit investment @ 21% - 5,061 - 13,598 plus: tax effect of adjustments (A) @ 21% statutory rate - 1,300 - 4,166 Total income tax expense 10,373$ 16,734$ (8,631)$ 9,133$ Net income 69,086$ 68,916$ 55,705$ 57,780$ Net earnings per share - diluted 0.73$ 0.73$ 0.59$ 0.61$ Pre-tax, pre-provision return on average assets 2.12% 2.26% 1.34% 1.82% 4Q 2022 3Q 2022

 
profitability 8 Return on Average Assets Return on Avg Tangible Common Equity Diluted EPS 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. Efficiency Ratio $0.73 $0.59$0.55 $0.44$0.50 $0.73  $0.61  $0.56  $0.46  $0.58  4Q223Q222Q221Q224Q21 Diluted EPS Adjusted EPS 1 1.63% 1.35%1.28% 1.03%1.16% 1.63% 1.40% 1.31% 1.09% 1.34% 4Q223Q222Q221Q224Q21 ROA Adjusted ROA 1 29.93% 22.29%20.68% 14.93%15.11% 29.86% 23.12%21.26% 15.75% 17.43% 4Q223Q222Q221Q224Q21 ROATCE Adjusted ROATCE 1 70.1% 69.6% 61.8% 69.3% 58.2%60.2% 67.7% 60.9% 58.5% 55.1% 4Q21 1Q22 2Q22 3Q22 4Q22 Efficiency Ratio Adjusted Efficiency Ratio 1

 
net interest income & margin 9 Net Interest Margin (FTE) 4Q22 NIM (FTE) Progression Net Interest Income All dollars shown in millions $5.0 $4.2 $3.9 $3.7$6.5 $1.2 $2.3 $2.6 $2.2$2.3 $5.6 $157.9 $137.9 $117.0 $106.3 $110.8 4Q223Q222Q221Q224Q21 Loan Fees Loan Accretion PPP Interest/Fees 3Q22 3.98% Asset yields/mix 0.90% Deposit/funding costs/mix -0.39% Accretion/other -0.02% 4Q22 4.47% 4.28% 3.78% 3.24% 2.93%2.82% 0.15% 0.12% 0.11% 0.11%0.18% 0.04% 0.07% 0.08% 0.07%0.07% 0.16% 4.47% 3.98% 3.45% 3.16%3.23% 4Q223Q222Q221Q224Q21 Basic Margin (FTE) Loan Fees Loan Accretion PPP Fees

 
average balance sheet 10 Average Loans Average Securities Average Deposits All dollars shown in millions 1 Includes loans fees and loan accretion $12,632$12,371$12,538$12,784$12,885 0.51% 0.20% 0.09%0.08%0.10% 4Q223Q222Q221Q224Q21 Total Deposits Cost of Deposits $10,059$9,597$9,368$9,267$9,283 6.01% 5.05% 4.16%3.82%3.96% 4Q223Q222Q221Q224Q21 Gross Loans Loan Yield (Gross) 1 $3,705$4,003$4,118$4,308$4,344 3.68% 3.11% 2.78% 2.50% 2.29% 4Q223Q222Q221Q224Q21 Average Investment Securities Investment Securities Yield

 
11 1NII – Year 1 impact, represents percentage change for immediate parallel changes in rates 2Reflects percentage of loans classified as variable rate and repricing in ≤ 1yr, hybrid variable rate repricing in > 1yr, or fixed rate, including loans held for sale 3Schedule reflects remaining maturity or repricing frequency for all fixed rate loans or hybrid variable rate loans repricing in > 1yr, including loans held for sale asset sensitive balance sheet positioning Net Interest Income Sensitivity 1 Loans - Variable Exposure2 Fixed/Hybrid Years to Maturity/Repricing3 ‐6.7% 4.5% 8.2% ‐100 bps +100 bps +200 bps 11% 7% 9% 73% ≤1 yr 1-2 yrs 2-3 yrs > 3 yrs Variable ≤ 1yr 65% Hybrid >  1yr 8% Fixed 27%

 
liquidity and beta profile 12 1Historical data adjusted for the merger with MainSource Financial Group, Inc. using the sum of the individual components. Historical Deposit and Loan Betas1 Total Deposit Beta Loan Beta Liquidity Trends 26% 28% 29% 30% 29% 28% 26% 25% 1Q21 2Q21 3Q21 4Q21  1Q22  2Q22  3Q22  4Q22 Cash + Securities / Assets 79% 76% 74% 72% 72% 77% 79% 81% 1Q21 2Q21 3Q21 4Q21  1Q22  2Q22  3Q22  4Q22 Loans / Deposits Ratio 53.1% 79.0% 62.1% 3Q15‐2Q19 Fed Cycle (+225bps) 3Q19‐4Q21 Fed Cycle (‐225bps) 1Q22‐4Q22 Fed Cycle (+425bps) 24% 31% 10% 3Q15‐2Q19 Fed Cycle (+225bps) 3Q19‐4Q21 Fed Cycle (‐225bps) 1Q22‐4Q22 Fed Cycle (+425bps)

 
13 Liquidity Sources Available Borrowing Capacity Liquidity Sources • In addition to deposits, First Financial has approximately $6.0 billion of readily available funding sources to meet customer needs through the following sources: • Interest-bearing deposits with other banks • Fed funds • FHLB funding • Brokered CDs • Highly liquid securities • Fed discount window • Investment securities portfolio: • $814 million of expected cash flow from securities portfolio in next 12 months • $371 million of securities available to be sold at breakeven • Portfolio duration of 4.6 years at 12/31 liquidity and borrowing capacity Investment Liquidity (dollars shown in thousands) (dollars shown in billions) Interest-bearing deposits with other banks 387,982$ Fed funds 1,688,000 Unpledged investment securities 1,931,516 FHLB borrowing availability 347,435 Brokered CDs 959,090 Funds available through Fed Discount Window 714,623 Total as of December 31, 2022 6,028,646$ $4.6  $4.5  $4.6  $4.8  $5.1  $4.5  $4.3  $3.7  1Q21 2Q21 3Q21  4Q21  1Q22  2Q22  3Q22  4Q22 Available borrowing capacity

 
loan portfolio 14 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) All dollars shown in millions Total growth/(decline): $501.5 million ICRE $3,526  34% Commercial &  Small Business  Banking $3,362  33% Oak Street $670  7% Franchise $276  3% Summit $307  3% Consumer $972  9% Mortgage $1,183  11% PPP $3  0% Total $10.3 Billion 1 $111.2 $150.2 $60.4 ‐$19.7 $129.7 $5.2 $65.4 ‐$0.9 ICRE Commercial & Small Business Banking Oak Street Franchise Summit Consumer Mortgage PPP

 
loan concentrations 15 C&I and Owner Occupied CRE Loans by Sector1 Investor CRE Loans by Property Type All dollars shown in millions 1 Excludes Summit Funding Group Property Type 12/31/22 % of Total Loans Residential Multi Family 5+ $952.5 9.24% Retail Property 790.2 7.67% Office 555.2 5.39% Hospital/Nursing Home 343.9 3.34% Industrial 341.9 3.32% Hotel 291.3 2.83% Residential 1-4 Family 90.4 0.88% Land 85.9 0.83% Other Real Estate 51.2 0.50% Other 23.2 0.23% Grand Total $3,525.8 34.21% NAICS Sector 12/31/22 % of Total Loans Finance and Insurance $787.0 7.64% Real Estate and Rental and Leasing 768.7 7.46% Manufacturing 591.7 5.74% Accommodation and Food Services 349.9 3.39% Health Care and Social Assistance 253.6 2.46% Construction 219.3 2.13% Retail Trade 199.6 1.94% Professional, Scientific, and Technical Services 190.6 1.85% Other Services (except Public Administration) 159.2 1.54% Agriculture, Forestry, Fishing and Hunting 145.4 1.41% Wholesale Trade 139.7 1.36% Transportation and Warehousing 122.3 1.19% Administrative and Support and Waste Management 89.0 0.86% Arts, Entertainment, and Recreation 73.3 0.71% Public Administration 67.5 0.65% Other 154.2 1.50% Grand Total $4,311.0 41.83%

 
deposits 16 Deposit Product Mix (Avg) 4Q22 Average Deposit Progression All dollars shown in millions Total growth/(decline): $261.3 million ‐$90.1 $49.0 $9.3 ‐$63.4 ‐$8.1 $319.3 $45.3 Interest‐bearing demand Noninterest‐bearing Savings Money Markets Retail CDs Brokered CDs Public Funds Interest‐bearing  demand $1,791  14% Noninterest‐ bearing $4,225  33% Savings $1,399  11% Money Markets $2,113  17% Retail CDs $841  7% Brokered CDs $446  4% Public Funds $1,817  14% Total $12.6 billion                                    

 
noninterest income 17 Noninterest Income 4Q22 Highlights All dollars shown in thousands • Total fee income 26.2% of net revenue • Record foreign exchange income of $19.6 million; increased $7.8 million, or 66.7%, from linked quarter • Record leasing business income of $11.1 million; increased $4.0 million, or 56.1%, from the linked quarter • Trust and wealth management fees of $5.6 million increased $0.2 million, or 2.9%, from the linked quarter • Deposit service charge income of $6.4 million; increased $0.1 million, or 2.0%, from the linked quarter • Mortgage banking income of $2.2 million; decreased $1.5 million, or 40.8%, from the linked quarter • Client derivative income of $1.8 million; $0.4 million, or 25.9%, increase from the linked quarter Service Charges $6,406  11% Wealth Mgmt $5,648  10% Bankcard income $3,736  7% Client derivative  fees $1,822  3% Foreign  exchange income $19,592  35% Leasing  business income $11,124  20% Mortgage  origination income $2,206  4% Other  $5,501  10% Total $56.0 million

 
noninterest expense 18 Noninterest Expense 4Q22 Highlights All dollars shown in thousands • Core expenses increased due to elevated incentive costs tied to record foreign exchange income during the period and overall Company performance • $2.5 million contribution to First Financial Foundation • Adjustments include: • $6.4 million of tax credit investment writedowns • $0.7 million of other costs not expected to recur such as acquisition, branch consolidation and severance costs Salaries and  benefits $73,621  59% Occupancy  and  equipment $8,668  7% Data processing $8,567  7% Professional  services $3,015  2% Intangible  amortization $2,573  2% Leasing business  expense $6,061  5% Other $21,937  18% Total $124.4 million

 
current expected credit losses - loans and leases 19 ACL / Total Loans 4Q22 Highlights All dollars shown in thousands • $151.4 million combined ACL; $10.0 million combined provision expense • $133.0 million ACL – loans and leases; increase driven by strong loan growth and slower prepayment rates; 1.29% of loan balances • Utilized Moody’s December baseline forecast in quantitative model • $18.4 million ACL – unfunded commitments ACL by Loan Type All dollars shown in millions 4Q21 1Q22 2Q22 3Q22 4Q22 Loans Commercial and industrial 44,052$              37,783$              39,179$              41,032$              42,313$              Lease financing 1,633                    2,093                    2,212                    2,450                    3,571                    Real estate ‐construction 11,874                 11,410                 11,965                 14,046                 13,527                 Real estate ‐ commercial 53,420                 51,512                 39,856                 38,071                 41,106                 Real estate ‐ residential 6,225                    6,152                    7,383                    9,422                    12,684                 Home equity 9,643                    9,676                    10,980                 11,620                 12,447                 Installment  1,097                    1,075                    1,189                    4,855                    4,945                    Credit card 4,048                    4,429                    5,121                    2,600                    2,384                    ACL‐loan and lease losses  131,992$           124,130$           117,885$           124,096$           132,977$               ACL‐unfunded commitments  13,406$              13,179$              16,661$              17,046$              18,388$              $133.0$124.1$117.9$124.1$132.0 1.29%1.27%1.25% 1.34%1.42% 4Q223Q222Q221Q224Q21 Allowance for Credit Losses ACL / Total Loans

 
asset quality 20 Nonperforming Assets / Total AssetsClassified Assets / Total Assets Net Charge Offs & Provision Expense1 . 1 Provision includes both loans & leases and unfunded commitments All dollars shown in millions $7.4  $2.3  $2.0  $1.7  $(0.2) ‐$7.7 ‐$5.8 ‐$0.8 $8.3 $10.0 ‐0.01% 0.07% 0.08%0.10% 0.32% 4Q21 1Q22 2Q22 3Q22 4Q22 NCOs Provision Expense NCOs / Average Loans $39.8 $47.4$50.2$53.6 $60.1 0.23%0.28%0.31%0.33%0.37% 4Q223Q222Q221Q224Q21 NPAs NPAs / Total Assets $128.1 $115.0$119.8 $106.8$104.8 0.75%0.69%0.74%0.67%0.64% 4Q223Q222Q221Q224Q21 Classified Assets Classified Assets / Total Assets

 
capital 21 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 12/31 Risk Weighted Assets = $12,923,233 All capital numbers are considered preliminary. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. Adjusted TCE excludes impact from AOCI Tier 1 Capital Ratio 10.83%10.82%10.91%10.87%10.85% 7.00% 4Q223Q222Q221Q224Q21 Tier 1 Common Equity Ratio Basel III minimum 11.17%11.17%11.28%11.24%11.22% 8.50% 4Q223Q222Q221Q224Q21 Tier 1 Capital Ratio Basel III minimum 13.64%13.73%13.94%13.97%14.11% 10.50% 4Q223Q222Q221Q224Q21 Total Capital Ratio Basel III minimum 7.58% 6.95% 6.40% 5.79% 5.95% 7.58% 7.90% 8.01% 8.07% 8.20% 4Q21 1Q22 2Q22 3Q22 4Q22 TCE ratio Adjusted TCE ratio1

 
capital strategy 22 Strategy & Deployment Tangible Book Value Per Share • 3.8% annualized dividend yield • 31.5% of 4Q22 earnings returned to shareholders through common dividend • Most recent internal stress testing indicates capital ratios above regulatory minimums in all modeled scenarios • Common dividend expected to remain unchanged in near-term • No shares repurchased in 4Q22; no plans to repurchase shares in near- term• Increase in TBV per share driven by strong earnings during the period $9.97  $9.48  $10.27  $10.97  $12.26  4Q223Q222Q221Q224Q21 Tangible Book Value per Share

 
outlook commentary1 • Loan balances expected to grow mid single digits in near term • Core deposit balances to moderately decline in near term 23 • Expected to be $109-111 million • Growth in leasing business expense as portfolio grows • Incentive expense will fluctuate with fee income Noninterest Expense Net Interest Margin Balance Sheet Credit • Continued stability in credit quality trends • ACL coverage expected to be slightly higher • Uncertainty regarding inflation and macroeconomic environment Noninterest Income • Total fee income expected to be $45-47 million • Foreign exchange income expected to return to historical levels in 1Q23 1 See Forward Looking Statement Disclosure on page 2-3 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. • Expected to be 4.50% - 4.60% • Likely to peak in 1Q dependent upon Fed action Capital • Expect to maintain dividend at current levels

 
The Company’s Investor Presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting provides meaningful information and therefore we use it to supplement our GAAP information. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments and to provide an additional measure of performance. We believe this information is helpful in understanding the results of operations separate and apart from items that may, or could, have a disproportional positive or negative impact in any given period. For a reconciliation of the differences between the non-GAAP financial measures and the most comparable GAAP measures, please refer to the following reconciliation tables. to GAAP Reconciliation 24 appendix: non-GAAP measures

 
appendix: non-GAAP to GAAP reconciliation 25 All dollars shown in thousands Net interest income and net interest margin - fully tax equivalent Dec. 31, Sep. 30, June 30, Mar. 31, Dec. 31, 2022 2022 2022 2022 2021 Net interest income 157,896$ 137,892$ 117,010$ 106,345$ 110,806$ Tax equivalent adjustment 1,553 1,712 1,625 1,467 1,386 Net interest income - tax equivalent 159,449$ 139,604$ 118,635$ 107,812$ 112,192$ Average earning assets 14,136,477$ 13,917,815$ 13,780,243$ 13,848,596$ 13,793,644$ Net interest margin1 4.43 % 3.93 % 3.41 % 3.11 % 3.19 % Net interest margin (fully tax equivalent)1 4.47 % 3.98 % 3.45 % 3.16 % 3.23 % Three months ended 1 Margins are calculated using net interest income annualized divided by average earning assets. 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.

 
appendix: non-GAAP to GAAP reconciliation 26 All dollars shown in thousands Additional non-GAAP ratios Dec. 31, Sep. 30, June 30, Mar. 31, Dec. 31, (Dollars in thousands, except per share data) 2022 2022 2022 2022 2021 Net income (a) 69,086$ 55,705$ 51,520$ 41,301$ 46,945$ Average total shareholders' equity 2,009,564 2,089,179 2,099,670 2,225,495 2,241,820 Less: Goodw ill (998,575) (999,690) (999,958) (1,000,238) (938,453) Other intangibles (95,256) (97,781) (100,354) (103,033) (71,006) Average tangible equity (b) 915,733 991,708 999,358 1,122,224 1,232,361 Total shareholders' equity 2,041,373 1,994,132 2,068,670 2,137,445 2,258,942 Less: Goodw ill (1,001,507) (998,422) (999,959) (999,959) (1,000,749) Other intangibles (93,919) (96,528) (99,019) (101,673) (104,367) Ending tangible equity (c) 945,947 899,182 969,692 1,035,813 1,153,826 Less: AOCI (358,663) (354,570) (243,328) (142,477) (433) Ending tangible equity less AOCI (d) 1,304,610 1,253,752 1,213,020 1,178,290 1,154,259 Total assets 17,003,316 16,623,793 16,243,714 16,009,150 16,329,141 Less: Goodw ill (1,001,507) (998,422) (999,959) (999,959) (1,000,749) Other intangibles (93,919) (96,528) (99,019) (101,673) (104,367) Ending tangible assets (e) 15,907,890 15,528,843 15,144,736 14,907,518 15,224,025 Risk-w eighted assets (f) 12,923,233 12,467,422 11,982,860 11,705,447 11,642,201 Total average assets 16,767,598 16,385,989 16,185,978 16,184,919 16,036,417 Less: Goodw ill (998,575) (999,690) (999,958) (1,000,238) (938,453) Other intangibles (95,256) (97,781) (100,354) (103,033) (71,006) Average tangible assets (g) 15,673,767$ 15,288,518$ 15,085,666$ 15,081,648$ 15,026,958$ Ending shares outstanding (h) 94,891,099 94,833,964 94,448,792 94,451,496 94,149,240 Ratios Return on average tangible shareholders' equity (a)/(b) 29.93% 22.29% 20.68% 14.93% 15.11% Ending tangible equity as a percent of: Ending tangible assets (c)/(e) 5.95% 5.79% 6.40% 6.95% 7.58% Risk-w eighted assets (c)/(f) 7.32% 7.21% 8.09% 8.85% 9.91% Ending tangible equity excluding AOCI as a percent of: Ending tangible assets (d)/(e) 8.20% 8.07% 8.01% 7.90% 7.58% Average tangible equity as a percent of average tangible assets (b)/(g) 5.84% 6.49% 6.62% 7.44% 8.20% Tangible book value per share (c)/(h) 9.97$ 9.48$ 10.27$ 10.97$ 12.26$ Three months ended,

 
appendix: non-GAAP to GAAP reconciliation 27 All dollars shown in thousands Additional non-GAAP measures 2Q22 1Q22 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 157,896$ 157,896$ 137,892$ 137,892$ 117,010$ 117,010$ 106,345$ 106,345$ Provision for credit losses-loans and leases (j) 8,689 8,689 7,898 7,898 (4,267) (4,267) (5,589) (5,589) Provision for credit losses-unfunded commitments (j) 1,341 1,341 386 386 3,481 3,481 (226) (226) Noninterest income 56,035 56,035 42,534 42,534 49,778 49,778 41,294 41,294 less: gains (losses) on sale of investment securities 922 (880) (1,054) (196) less: other - - - - Total noninterest income (g) 56,035 55,113 42,534 43,414 49,778 50,832 41,294 41,490 Noninterest expense 124,442 124,442 125,068 125,068 103,034 103,034 102,805 102,805 less: tax credit investments 6,406 17,212 104 104 less: legal settlement - - - - less: Summit acquisition costs 149 76 100 323 less: COVID-19 and other 558 1,671 666 2,354 Total noninterest expense (e) 124,442 117,329 125,068 106,109 103,034 102,164 102,805 100,024 Income before income taxes (i) 79,459 85,650 47,074 66,913 64,540 66,464 50,649 53,626 Income tax expense 10,373 10,373 (8,631) (8,631) 13,020 13,020 9,348 9,348 plus: tax effect of adjustments 5,061 13,598 82 83 plus: after-tax impact of tax credit investments @ 21% 1,300 4,166 404 625 Total income tax expense (h) 10,373 16,734 (8,631) 9,133 13,020 13,506 9,348 10,056 Net income (a) 69,086$ 68,916$ 55,705$ 57,780$ 51,520$ 52,958$ 41,301$ 43,570$ Average diluted shares (b) 94,832 94,832 94,794 94,794 94,450 94,450 94,264 94,264 Average assets (c) 16,767,598 16,767,598 16,385,989 16,385,989 16,185,978 16,185,978 16,184,919 16,184,919 Average shareholders' equity 2,009,564 2,009,564 2,089,179 2,089,179 2,099,670 2,099,670 2,225,495 2,225,495 Less: Goodw ill and other intangibles (1,093,831) (1,093,831) (1,097,471) (1,097,471) (1,100,312) (1,100,312) (1,103,271) (1,103,271) Average tangible equity (d) 915,733 915,733 991,708 991,708 999,358 999,358 1,122,224 1,122,224 Ratios Net earnings per share - diluted (a)/(b) 0.73$ 0.73$ 0.59$ 0.61$ 0.55$ 0.56$ 0.44$ 0.46$ Return on average assets - (a)/(c) 1.63% 1.63% 1.35% 1.40% 1.28% 1.31% 1.03% 1.09% Pre-tax, pre-provision return on average assets - ((a)+(j)+(h))/(c) 2.12% 2.26% 1.34% 1.82% 1.58% 1.63% 1.12% 1.20% Return on average tangible shareholders' equity - (a)/(d) 29.93% 29.86% 22.29% 23.12% 20.68% 21.26% 14.93% 15.75% Efficiency ratio - (e)/((f)+(g)) 58.2% 55.1% 69.3% 58.5% 61.8% 60.9% 69.6% 67.7% Effective tax rate - (h)/(i) 13.1% 19.5% -18.3% 13.6% 20.2% 20.3% 18.5% 18.8% (Dollars in thousands, except per share data) 4Q22 3Q22

 
28 First Financial Bancorp First Financial Center 255 East Fifth Street Cincinnati, OH 45202