ffbc-20210422
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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): April 22, 2021
 
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 April 22, 2021, First Financial Bancorp. (the "Company") issued its earnings press release that included its results of operations and financial condition for the first three months of 2021. 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 April 22, 2021
    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:April 22, 2021

                    




                                                Exhibit 99.1
yellowbara121.jpgbancorplogoa041.jpg                                        
First Financial Bancorp Announces First Quarter 2021 Financial Results

•Earnings per diluted share of $0.48; $0.50 on an adjusted(1) basis
•Return on average assets of 1.20%; 1.24% as adjusted(1)
•Net interest margin FTE(1) of 3.40%
•Provision for credit losses of $4.0 million; $7.5 million decline from linked quarter
•Repurchased 840,115 shares during the quarter

Cincinnati, Ohio - April 22, 2021 First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three months ended March 31, 2021.

For the three months ended March 31, 2021, the Company reported net income of $47.3 million, or $0.48 per diluted common share. These results compare to net income of $48.3 million, or $0.49 per diluted common share, for the fourth quarter of 2020 and $28.6 million, or $0.29 per diluted common share, for the first quarter of 2020.

Return on average assets for the first quarter of 2021 was 1.20% while return on average tangible common equity was 15.24%. These compare to returns on average assets of 1.20% and 0.79%, and returns on average tangible common equity of 15.50% and 9.71%, in the fourth quarter of 2020 and the first quarter of 2020, respectively.

First quarter 2021 highlights include:

•After adjustments(1) for certain nonrecurring items:
◦Net income of $0.50 per diluted common share
◦1.24% return on average assets
◦15.80% return on average tangible common equity

•Net interest margin of 3.40% on a fully tax-equivalent basis(1) in line with expectations
◦9 basis point reduction from linked quarter driven by fewer fees related to loan prepayments, and lower volume of PPP forgiveness

•Noninterest income of $40.3 million, or $40.2 million as adjusted(1)
◦Foreign exchange income of $10.8 million remains strong despite decline from record fourth quarter
◦Mortgage income of $9.5 million in line with expectations given expected seasonal declines and lower premiums

•Noninterest expenses of $92.5 million, or $90.0 million as adjusted(1)
◦Adjustments(1) include:
▪$1.3 million of severance related costs
▪$1.3 million of other nonrecurring costs such as branch consolidation costs
◦Efficiency ratio of 60.0%; 58.4% as adjusted(1)

•Excluding PPP growth, loan balances declined slightly during the quarter driven primarily by a decline in consumer and mortgage loans

•Average transactional deposit balances grew $523.7 million compared to the linked quarter; 21.1% on an annualized basis

______________________________________________________________________________________
(1) Financial information in this release that is described as “adjusted” or that is presented on a fully tax equivalent basis is non-GAAP. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
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•Total Allowance for Credit Losses of $183.0 million; Total quarterly provision for credit losses of $4.0 million
◦Loans and leases - ACL of $169.9 million, 1.71% of total loans; 1.84% of loans excluding PPP
◦Unfunded Commitments - ACL of $13.0 million
◦First quarter provision expense driven by net charge-offs, partially offset by improvements in economic conditions

•Strong capital ratios
◦Total capital of 15.41%
◦Tier 1 common equity of 11.81%
◦Tangible common equity of 8.22%; 8.62% excluding PPP loans
◦Tangible book value per share of $12.78; $0.15 decrease compared to linked quarter
◦Repurchased 840,115 shares during first quarter

Archie Brown, President and Chief Executive Officer, remarked, “While uncertainty remains due to the ongoing pandemic, the accelerated COVID-19 vaccine distribution, unprecedented fiscal stimulus, and an accommodative Federal Reserve have led to widespread optimism for our economy, which is in stark contrast to our sentiment at this time last year. Our first quarter operating performance reflects this change in sentiment and we have renewed optimism as a result of the improved business climate, despite an operating environment that presents challenges due to very low interest rates and muted loan demand.

Mr. Brown continued, “Our first quarter financial results once again reflect our earnings power and our consistent ability to deliver value to our shareholders. Our core quarterly financial metrics remained strong with adjusted(1) earnings per share of $0.50, adjusted(1) return on assets of 1.24%, and an adjusted(1) efficiency ratio of 58.4%. Net income was bolstered by lower expenses and significantly lower credit costs. Despite expected seasonal declines, noninterest income was strong due to healthy mortgage demand, robust foreign exchange activity and higher wealth management fees. In addition, adjusted(1) noninterest expenses declined $4.6 million from the linked quarter and resulted in a sub-60% efficiency ratio. As I mentioned, credit costs were low with $4.0 million of provision expense during the quarter, and resulted in an allowance for credit losses of 1.84% of total loans, excluding PPP. Classified assets increased during the quarter, however our overall credit outlook has improved significantly and our borrowers are seeing benefits from the various stimulus actions. While first quarter net charge-offs increased slightly from previous quarters, this was driven by a single customer relationship. Given our overall credit outlook, we expect the allowance for credit losses to continue to decline over the course of 2021.”

Mr. Brown commented on balance sheet trends and capital utilization, “Excluding PPP activity, loan balances declined slightly for the quarter due to accelerated mortgage and HELOC payoffs, increased borrower liquidity, and muted business loan demand. As a result of these trends, we anticipate slower growth in the near-term, with some acceleration in the second half of the year. As of March 31, consumers and businesses were holding record levels of deposits, with average balances increasing during the quarter as a result of the stimulus package approved by Congress last December. We anticipate further deposit balance growth in the second quarter after the passage of the most recent stimulus bill. This anticipated growth will likely suppress loan demand and service charge income in the near-term. From a capital standpoint, our ratios remained strong through the first quarter. The combination of our current capital levels and our improved credit outlook, prompted us to repurchase 840,115 shares during the quarter. Absent higher priority capital deployment alternatives, we anticipate additional buyback activity in the second quarter.”

Mr. Brown concluded, “We are pleased with our improved performance and outlook from this time last year. We have started to transition associates back into their physical office locations, and we look forward to implementing the lessons learned over the past year to create an efficient, safe, and collaborative workplace. As our local and national economies continue to improve, we believe we are well positioned to deliver industry leading services to our clients and returns to our shareholders.”

Full detail of the Company’s first quarter 2021 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, April 23, 2021 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section
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of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10154329. 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.



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Forward-Looking Statement

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

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

•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 declines in housing prices, high 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 of a slowing U.S. economy and increased unemployment 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.

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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, 2020, 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 March 31, 2021, the Company had $16.2 billion in assets, $9.9 billion in loans, $12.6 billion in deposits and $2.3 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 $3.1 billion in assets under management as of March 31, 2021. The Company operated 143 full service banking centers as of March 31, 2021, primarily 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]    
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contentsheader0215a231.jpg
Selected Financial Information
March 31, 2021
(unaudited)

ContentsPage
Consolidated Financial Highlights2
Consolidated Quarterly Statements of Income3
Consolidated Statements of Condition4
Average Consolidated Statements of Condition5
Net Interest Margin Rate / Volume Analysis6
Credit Quality7
Capital Adequacy8



    
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20212020202020202020
RESULTS OF OPERATIONS
Net income$47,315 $48,312 $41,477 $37,393 $28,628 
Net earnings per share - basic$0.49 $0.50 $0.43 $0.38 $0.29 
Net earnings per share - diluted$0.48 $0.49 $0.42 $0.38 $0.29 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 
KEY FINANCIAL RATIOS
Return on average assets1.20 %1.20 %1.04 %0.96 %0.79 %
Return on average shareholders' equity8.44 %8.52 %7.40 %6.88 %5.21 %
Return on average tangible shareholders' equity15.24 %15.50 %13.61 %12.90 %9.71 %
Net interest margin3.35 %3.45 %3.32 %3.38 %3.71 %
Net interest margin (fully tax equivalent) (1)
3.40 %3.49 %3.36 %3.44 %3.77 %
Ending shareholders' equity as a percent of ending assets13.97 %14.29 %14.11 %13.99 %14.47 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets8.22 %8.47 %8.25 %8.09 %8.25 %
Risk-weighted assets11.02 %11.29 %11.07 %10.89 %10.50 %
Average shareholders' equity as a percent of average assets14.17 %14.07 %14.08 %13.91 %15.21 %
Average tangible shareholders' equity as a percent of
    average tangible assets8.38 %8.26 %8.18 %7.94 %8.79 %
Book value per share$23.16 $23.28 $22.94 $22.66 $22.25 
Tangible book value per share$12.78 $12.93 $12.56 $12.26 $11.82 
Common equity tier 1 ratio (2)
11.81 %11.82 %11.63 %11.49 %11.27 %
Tier 1 ratio (2)
12.19 %12.20 %12.02 %11.87 %11.66 %
Total capital ratio (2)
15.41 %15.55 %15.37 %15.19 %13.54 %
Leverage ratio (2)
9.34 %9.55 %9.55 %8.98 %9.49 %
AVERAGE BALANCE SHEET ITEMS
Loans (3)
$9,951,855 $10,127,881 $10,253,392 $10,002,379 $9,220,643 
Investment securities3,782,993 3,403,839 3,162,832 3,164,243 3,115,723 
Interest-bearing deposits with other banks46,912 143,884 40,277 91,990 39,332 
  Total earning assets$13,781,760 $13,675,604 $13,456,501 $13,258,612 $12,375,698 
Total assets$16,042,654 $16,030,986 $15,842,010 $15,710,204 $14,524,422 
Noninterest-bearing deposits$3,840,046 $3,720,417 $3,535,432 $3,335,866 $2,643,240 
Interest-bearing deposits8,531,822 8,204,306 8,027,082 8,395,229 7,590,791 
  Total deposits$12,371,868 $11,924,723 $11,562,514 $11,731,095 $10,234,031 
Borrowings$886,379 $1,307,461 $1,519,748 $1,272,819 $1,735,767 
Shareholders' equity$2,272,749 $2,256,062 $2,230,422 $2,185,865 $2,209,733 
CREDIT QUALITY RATIOS
Allowance to ending loans1.71 %1.77 %1.65 %1.56 %1.55 %
Allowance to nonaccrual loans199.33 %217.55 %216.28 %233.74 %296.51 %
Allowance to nonperforming loans175.44 %199.97 %196.69 %208.06 %203.42 %
Nonperforming loans to total loans0.97 %0.89 %0.84 %0.75 %0.76 %
Nonperforming assets to ending loans, plus OREO0.98 %0.90 %0.86 %0.77 %0.78 %
Nonperforming assets to total assets0.60 %0.56 %0.55 %0.49 %0.48 %
Classified assets to total assets1.22 %0.89 %0.84 %0.79 %0.83 %
Net charge-offs to average loans (annualized)0.38 %0.26 %0.21 %0.12 %(0.04)%

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(2) March 31, 2021 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.
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FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
20212020
FirstFourthThirdSecondFirstFull
QuarterQuarterQuarterQuarterQuarterYear
Interest income
  Loans and leases, including fees$98,931 $106,733 $103,249 $105,900 $115,775 $431,657 
  Investment securities
     Taxable18,607 18,402 17,906 18,476 19,005 73,789 
     Tax-exempt5,043 4,839 4,884 4,937 4,582 19,242 
        Total investment securities interest23,650 23,241 22,790 23,413 23,587 93,031 
  Other earning assets28 55 31 47 142 275 
       Total interest income122,609 130,029 126,070 129,360 139,504 524,963 
Interest expense
  Deposits4,333 5,920 7,886 11,751 16,365 41,922 
  Short-term borrowings67 30 51 1,274 5,087 6,442 
  Long-term borrowings4,333 5,606 5,953 4,759 3,770 20,088 
      Total interest expense8,733 11,556 13,890 17,784 25,222 68,452 
      Net interest income113,876 118,473 112,180 111,576 114,282 456,511 
  Provision for credit losses-loans and leases 3,450 13,758 15,299 17,859 23,880 70,796 
  Provision for credit losses-unfunded commitments 538 (2,250)(1,925)2,370 1,568 (237)
      Net interest income after provision for credit losses109,888 106,965 98,806 91,347 88,834 385,952 
Noninterest income
  Service charges on deposit accounts7,146 7,654 7,356 6,001 8,435 29,446 
  Trust and wealth management fees4,398 4,093 3,855 4,114 4,469 16,531 
  Bankcard income3,128 3,060 3,124 2,844 2,698 11,726 
  Client derivative fees1,556 2,021 2,203 2,984 3,105 10,313 
  Foreign exchange income10,757 12,305 10,530 6,576 9,966 39,377 
  Net gains from sales of loans9,454 13,089 18,594 16,662 2,831 51,176 
  Net gains (losses) on sale of investment securities(166)4,618 2 2 (59)4,563 
  Unrealized gain (loss) on equity securities112 8,975 18 150 (98)9,045 
  Other3,937 5,700 3,817 3,392 4,037 16,946 
      Total noninterest income40,322 61,515 49,499 42,725 35,384 189,123 
Noninterest expenses
  Salaries and employee benefits61,253 62,263 63,769 55,925 54,822 236,779 
  Net occupancy5,704 6,159 5,625 5,378 6,104 23,266 
  Furniture and equipment3,969 3,596 3,638 3,681 4,053 14,968 
  Data processing7,287 7,269 6,837 7,019 6,389 27,514 
  Marketing1,361 1,999 1,856 1,339 1,220 6,414 
  Communication838 840 855 907 890 3,492 
  Professional services1,450 3,038 2,443 2,205 2,275 9,961 
  Debt extinguishment0 7,257 0 0 0 7,257 
  State intangible tax1,202 1,514 1,514 1,514 1,516 6,058 
  FDIC assessments1,349 1,065 1,350 1,290 1,405 5,110 
  Intangible amortization 2,479 2,764 2,779 2,791 2,792 11,126 
  Other5,614 17,034 6,845 6,640 8,200 38,719 
      Total noninterest expenses92,506 114,798 97,511 88,689 89,666 390,664 
Income before income taxes57,704 53,682 50,794 45,383 34,552 184,411 
Income tax expense (benefit)10,389 5,370 9,317 7,990 5,924 28,601 
      Net income$47,315 $48,312 $41,477 $37,393 $28,628 $155,810 
ADDITIONAL DATA
Net earnings per share - basic$0.49 $0.50 $0.43 $0.38 $0.29 $1.60 
Net earnings per share - diluted$0.48 $0.49 $0.42 $0.38 $0.29 $1.59 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 $0.92 
Return on average assets1.20 %1.20 %1.04 %0.96 %0.79 %1.00 %
Return on average shareholders' equity8.44 %8.52 %7.40 %6.88 %5.21 %7.02 %
Interest income$122,609 $130,029 $126,070 $129,360 $139,504 $524,963 
Tax equivalent adjustment1,652 1,613 1,628 1,664 1,624 6,529 
   Interest income - tax equivalent124,261 131,642 127,698 131,024 141,128 531,492 
Interest expense8,733 11,556 13,890 17,784 25,222 68,452 
   Net interest income - tax equivalent$115,528 $120,086 $113,808 $113,240 $115,906 $463,040 
Net interest margin3.35 %3.45 %3.32 %3.38 %3.71 %3.46 %
Net interest margin (fully tax equivalent) (1)
3.40 %3.49 %3.36 %3.44 %3.77 %3.51 %
Full-time equivalent employees2,063 2,075 2,065 2,076 2,067 
(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.
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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,% Change% Change
20212020202020202020Linked Qtr.Comp Qtr.
ASSETS
     Cash and due from banks$210,191 $231,054 $207,128 $283,639 $261,892 (9.0)%(19.7)%
     Interest-bearing deposits with other banks19,180 20,305 38,806 38,845 71,071 (5.5)%(73.0)%
     Investment securities available-for-sale3,753,763 3,424,580 3,004,963 2,897,413 2,908,688 9.6 %29.1 %
     Investment securities held-to-maturity121,945 131,687 118,072 127,347 136,744 (7.4)%(10.8)%
     Other investments131,814 133,198 118,292 132,366 143,581 (1.0)%(8.2)%
     Loans held for sale34,590 41,103 69,008 43,950 27,334 (15.8)%26.5 %
     Loans and leases
       Commercial and industrial3,044,825 3,007,509 3,292,313 3,322,374 2,477,773 1.2 %22.9 %
       Lease financing66,574 72,987 74,742 80,087 82,602 (8.8)%(19.4)%
       Construction real estate642,709 636,096 575,648 506,085 500,311 1.0 %28.5 %
       Commercial real estate4,396,582 4,307,858 4,347,125 4,343,702 4,278,257 2.1 %2.8 %
       Residential real estate946,522 1,003,086 1,027,702 1,043,745 1,061,792 (5.6)%(10.9)%
       Home equity709,667 743,099 754,743 764,171 781,243 (4.5)%(9.2)%
       Installment82,421 81,850 84,629 79,150 80,085 0.7 %2.9 %
       Credit card44,669 48,485 43,907 42,397 45,756 (7.9)%(2.4)%
          Total loans9,933,969 9,900,970 10,200,809 10,181,711 9,307,819 0.3 %6.7 %
       Less:
          Allowance for credit losses 169,923 175,679 168,544 158,661 143,885 (3.3)%18.1 %
                Net loans 9,764,046 9,725,291 10,032,265 10,023,050 9,163,934 0.4 %6.5 %
     Premises and equipment204,537 207,211 209,474 211,164 212,787 (1.3)%(3.9)%
     Goodwill 937,771 937,771 937,771 937,771 937,771 0.0 %0.0 %
     Other intangibles61,984 64,552 67,419 70,325 73,258 (4.0)%(15.4)%
     Accrued interest and other assets935,250 1,056,382 1,122,449 1,105,020 1,120,507 (11.5)%(16.5)%
       Total Assets$16,175,071 $15,973,134 $15,925,647 $15,870,890 $15,057,567 1.3 %7.4 %
LIABILITIES
     Deposits
       Interest-bearing demand$2,914,761 $2,914,787 $2,632,467 $2,657,841 $2,498,109 0.0 %16.7 %
       Savings4,006,181 3,680,774 3,446,678 3,287,314 2,978,250 8.8 %34.5 %
       Time1,731,757 1,872,733 1,935,392 2,241,212 2,435,858 (7.5)%(28.9)%
          Total interest-bearing deposits8,652,699 8,468,294 8,014,537 8,186,367 7,912,217 2.2 %9.4 %
       Noninterest-bearing3,995,370 3,763,709 3,552,893 3,515,048 2,723,341 6.2 %46.7 %
          Total deposits12,648,069 12,232,003 11,567,430 11,701,415 10,635,558 3.4 %18.9 %
     Federal funds purchased and securities sold
         under agreements to repurchase181,387 166,594 247,658 154,347 215,824 8.9 %(16.0)%
     FHLB short-term borrowings0 0 0 0 1,181,900 0.0 %(100.0)%
          Total short-term borrowings181,387 166,594 247,658 154,347 1,397,724 8.9 %(87.0)%
     Long-term debt583,722 776,202 1,341,164 1,285,767 325,566 (24.8)%79.3 %
          Total borrowed funds765,109 942,796 1,588,822 1,440,114 1,723,290 (18.8)%(55.6)%
     Accrued interest and other liabilities502,951 516,265 521,580 508,342 519,336 (2.6)%(3.2)%
       Total Liabilities13,916,129 13,691,064 13,677,832 13,649,871 12,878,184 1.6 %8.1 %
SHAREHOLDERS' EQUITY
     Common stock1,633,137 1,638,947 1,637,489 1,635,070 1,633,950 (0.4)%0.0 %
     Retained earnings745,220 720,429 694,484 675,532 660,653 3.4 %12.8 %
     Accumulated other comprehensive income (loss)18,101 48,664 42,266 36,431 11,788 (62.8)%53.6 %
     Treasury stock, at cost(137,516)(125,970)(126,424)(126,014)(127,008)9.2 %8.3 %
       Total Shareholders' Equity2,258,942 2,282,070 2,247,815 2,221,019 2,179,383 (1.0)%3.7 %
       Total Liabilities and Shareholders' Equity$16,175,071 $15,973,134 $15,925,647 $15,870,890 $15,057,567 1.3 %7.4 %

4

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly Averages
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20212020202020202020
ASSETS
     Cash and due from banks$232,275 $228,427 $233,216 $284,726 $235,696 
     Interest-bearing deposits with other banks46,912 143,884 40,277 91,990 39,332 
     Investment securities3,782,993 3,403,839 3,162,832 3,164,243 3,115,723 
     Loans held for sale29,689 42,402 45,186 36,592 13,174 
     Loans and leases
       Commercial and industrial3,029,716 3,182,749 3,299,259 3,058,677 2,450,893 
       Lease financing70,508 74,107 78,500 81,218 85,782 
       Construction real estate647,655 608,401 536,870 495,407 501,471 
       Commercial real estate4,339,349 4,313,408 4,364,708 4,381,647 4,209,345 
       Residential real estate980,718 1,022,701 1,041,250 1,052,996 1,055,456 
       Home equity726,134 752,425 759,994 772,424 773,082 
       Installment81,377 83,509 82,016 79,016 81,234 
       Credit card46,709 48,179 45,609 44,402 50,206 
          Total loans9,922,166 10,085,479 10,208,206 9,965,787 9,207,469 
       Less:
          Allowance for credit losses 177,863 172,201 165,270 155,454 121,126 
                Net loans 9,744,303 9,913,278 10,042,936 9,810,333 9,086,343 
     Premises and equipment206,628 208,800 211,454 213,903 215,545 
     Goodwill 937,771 937,771 937,771 937,771 937,771 
     Other intangibles63,529 66,195 69,169 72,086 75,014 
     Accrued interest and other assets998,554 1,086,390 1,099,169 1,098,560 805,824 
       Total Assets$16,042,654 $16,030,986 $15,842,010 $15,710,204 $14,524,422 
LIABILITIES
     Deposits
       Interest-bearing demand$2,948,682 $2,812,748 $2,668,635 $2,602,917 $2,418,193 
       Savings3,815,314 3,547,179 3,342,514 3,173,274 2,976,518 
       Time1,767,826 1,844,379 2,015,933 2,619,038 2,196,080 
          Total interest-bearing deposits8,531,822 8,204,306 8,027,082 8,395,229 7,590,791 
       Noninterest-bearing3,840,046 3,720,417 3,535,432 3,335,866 2,643,240 
          Total deposits12,371,868 11,924,723 11,562,514 11,731,095 10,234,031 
     Federal funds purchased and securities sold
          under agreements to repurchase184,483 136,795 150,088 145,291 164,093 
     FHLB short-term borrowings67,222 7,937 30,868 548,183 1,189,765 
          Total short-term borrowings251,705 144,732 180,956 693,474 1,353,858 
     Long-term debt634,674 1,162,729 1,338,792 579,345 381,909 
       Total borrowed funds886,379 1,307,461 1,519,748 1,272,819 1,735,767 
     Accrued interest and other liabilities511,658 542,740 529,326 520,425 344,891 
       Total Liabilities13,769,905 13,774,924 13,611,588 13,524,339 12,314,689 
SHAREHOLDERS' EQUITY
     Common stock1,636,884 1,638,032 1,636,107 1,634,405 1,638,851 
     Retained earnings726,351 703,257 679,980 658,312 660,108 
     Accumulated other comprehensive loss42,253 40,960 40,697 19,888 31,200 
     Treasury stock, at cost(132,739)(126,187)(126,362)(126,740)(120,426)
       Total Shareholders' Equity2,272,749 2,256,062 2,230,422 2,185,865 2,209,733 
       Total Liabilities and Shareholders' Equity$16,042,654 $16,030,986 $15,842,010 $15,710,204 $14,524,422 

5

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 Quarterly Averages
March 31, 2021December 31, 2020March 31, 2020 Linked Qtr. Income Variance Comparable Qtr. Income Variance
BalanceYieldBalanceYieldBalanceYieldRateVolumeTotalRateVolumeTotal
Earning assets
    Investments:
      Investment securities$3,782,993 2.54 %$3,403,839 2.71 %$3,115,723 3.04 %$(1,488)$1,897 $409 $(3,892)$3,955 $63 
      Interest-bearing deposits with other banks46,912 0.24 %143,884 0.15 %39,332 1.45 %33 (60)(27)(118)4 (114)
    Gross loans (1)
9,951,855 4.03 %10,127,881 4.18 %9,220,643 5.04 %(3,815)(3,987)(7,802)(23,094)6,250 (16,844)
       Total earning assets13,781,760 3.61 %13,675,604 3.77 %12,375,698 4.52 %(5,270)(2,150)(7,420)(27,104)10,209 (16,895)
Nonearning assets
    Allowance for credit losses(177,863)(172,201)(121,126)
    Cash and due from banks232,275 228,427 235,696 
    Accrued interest and other assets2,206,482 2,299,156 2,034,154 
       Total assets$16,042,654 $16,030,986 $14,524,422 
Interest-bearing liabilities
    Deposits:
      Interest-bearing demand$2,948,682 0.07 %$2,812,748 0.08 %$2,418,193 0.45 %
      Savings3,815,314 0.13 %3,547,179 0.15 %2,976,518 0.45 %
      Time1,767,826 0.60 %1,844,379 0.86 %2,196,080 1.88 %
    Total interest-bearing deposits8,531,822 0.21 %8,204,306 0.29 %7,590,791 0.86 %$(1,661)$74 $(1,587)$(12,467)$435 $(12,032)
    Borrowed funds
      Short-term borrowings251,705 0.11 %144,732 0.08 %1,353,858 1.51 %9 28 37 (4,723)(297)(5,020)
      Long-term debt634,674 2.77 %1,162,729 1.91 %381,909 3.96 %2,509 (3,782)(1,273)(1,134)1,697 563 
        Total borrowed funds886,379 2.01 %1,307,461 1.71 %1,735,767 2.05 %2,518 (3,754)(1,236)(5,857)1,400 (4,457)
       Total interest-bearing liabilities9,418,201 0.38 %9,511,767 0.48 %9,326,558 1.08 %857 (3,680)(2,823)(18,324)1,835 (16,489)
Noninterest-bearing liabilities
    Noninterest-bearing demand deposits3,840,046 3,720,417 2,643,240 
    Other liabilities511,658 542,740 344,891 
    Shareholders' equity2,272,749 2,256,062 2,209,733 
       Total liabilities & shareholders' equity$16,042,654 $16,030,986 $14,524,422 
Net interest income $113,876 $118,473 $114,282 $(6,127)$1,530 $(4,597)$(8,780)$8,374 $(406)
Net interest spread 3.23 %3.29 %3.44 %
Net interest margin 3.35 %3.45 %3.71 %
Tax equivalent adjustment0.05 %0.04 %0.06 %
Net interest margin (fully tax equivalent)3.40 %3.49 %3.77 %
(1) Loans held for sale and nonaccrual loans are included in gross loans.
6

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20212020202020202020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period$175,679 $168,544 $158,661 $143,885 $57,650 
 Day one adoption impact of ASC 3260 0 0 0 61,505 
  Provision for credit losses3,450 13,758 15,299 17,859 23,880 
  Gross charge-offs
    Commercial and industrial7,910 1,505 1,467 1,282 1,091 
    Lease financing0 0 852 0 0 
    Construction real estate2 0 0 0 0 
    Commercial real estate1,250 6,270 3,789 2,037 4 
    Residential real estate1 203 22 148 115 
    Home equity611 386 460 428 267 
    Installment36 21 59 7 61 
    Credit card222 169 171 234 311 
      Total gross charge-offs 10,032 8,554 6,820 4,136 1,849 
  Recoveries
    Commercial and industrial337 367 265 275 2,000 
    Lease financing0 (6)6 0 0 
    Construction real estate0 3 0 14 0 
    Commercial real estate195 844 760 424 234 
    Residential real estate44 145 91 93 52 
    Home equity177 428 209 156 339 
    Installment34 65 35 27 31 
    Credit card39 85 38 64 43 
      Total recoveries826 1,931 1,404 1,053 2,699 
  Total net charge-offs9,206 6,623 5,416 3,083 (850)
Ending allowance for credit losses$169,923 $175,679 $168,544 $158,661 $143,885 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
  Commercial and industrial1.01 %0.14 %0.14 %0.13 %(0.15)%
  Lease financing0.00 %0.03 %4.29 %0.00 %0.00 %
  Construction real estate0.00 %0.00 %0.00 %(0.01)%0.00 %
  Commercial real estate0.10 %0.50 %0.28 %0.15 %(0.02)%
  Residential real estate(0.02)%0.02 %(0.03)%0.02 %0.02 %
  Home equity0.24 %(0.02)%0.13 %0.14 %(0.04)%
  Installment0.01 %(0.21)%0.12 %(0.10)%0.15 %
  Credit card1.59 %0.69 %1.16 %1.54 %2.15 %
     Total net charge-offs0.38 %0.26 %0.21 %0.12 %(0.04)%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
  Nonaccrual loans (1)
    Commercial and industrial$24,941 $29,230 $34,686 $33,906 $21,126 
    Lease financing0 0 1,092 1,353 222 
    Construction real estate0 0 0 0 0 
    Commercial real estate44,514 34,682 24,521 14,002 10,050 
    Residential real estate11,359 11,601 12,104 12,813 11,163 
    Home equity4,286 5,076 5,374 5,604 5,821 
    Installment146 163 153 201 145 
      Nonaccrual loans85,246 80,752 77,930 67,879 48,527 
  Accruing troubled debt restructurings (TDRs)11,608 7,099 7,759 8,377 22,206 
     Total nonperforming loans96,854 87,851 85,689 76,256 70,733 
  Other real estate owned (OREO)854 1,287 1,643 1,872 1,467 
     Total nonperforming assets97,708 89,138 87,332 78,128 72,200 
  Accruing loans past due 90 days or more92 169 79 124 120 
     Total underperforming assets$97,800 $89,307 $87,411 $78,252 $72,320 
Total classified assets$196,782 $142,021 $134,002 $125,543 $124,510 
CREDIT QUALITY RATIOS
Allowance for credit losses to
     Nonaccrual loans199.33 %217.55 %216.28 %233.74 %296.51 %
     Nonperforming loans175.44 %199.97 %196.69 %208.06 %203.42 %
     Total ending loans1.71 %1.77 %1.65 %1.56 %1.55 %
Nonperforming loans to total loans0.97 %0.89 %0.84 %0.75 %0.76 %
Nonperforming assets to
     Ending loans, plus OREO0.98 %0.90 %0.86 %0.77 %0.78 %
     Total assets0.60 %0.56 %0.55 %0.49 %0.48 %
Nonperforming assets, excluding accruing TDRs to
     Ending loans, plus OREO0.87 %0.83 %0.78 %0.68 %0.54 %
     Total assets0.53 %0.51 %0.50 %0.44 %0.33 %
Classified assets to total assets1.22 %0.89 %0.84 %0.79 %0.83 %
(1) Nonaccrual loans include nonaccrual TDRs of $20.9 million, $14.7 million, $29.3 million, $32.7 million, and $18.4 million, as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

7

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,June 30,Mar. 31,
20212020202020202020
PER COMMON SHARE
Market Price
  High$26.40 $17.77 $15.15 $16.38 $25.52 
  Low$17.62 $12.07 $11.40 $11.52 $12.67 
  Close$24.00 $17.53 $12.01 $13.89 $14.91 
Average shares outstanding - basic96,873,940 97,253,787 97,247,080 97,220,748 97,736,690 
Average shares outstanding - diluted97,727,527 98,020,534 98,008,733 97,988,600 98,356,214 
Ending shares outstanding97,517,693 98,021,929 97,999,763 98,018,858 97,968,958 
Total shareholders' equity$2,258,942 $2,282,070 $2,247,815 $2,221,019 $2,179,383 
REGULATORY CAPITALPreliminary
Common equity tier 1 capital$1,334,882 $1,325,922 $1,293,716 $1,267,609 $1,243,152 
Common equity tier 1 capital ratio11.81 %11.82 %11.63 %11.49 %11.27 %
Tier 1 capital$1,377,892 $1,368,818 $1,336,497 $1,310,276 $1,285,705 
Tier 1 ratio12.19 %12.20 %12.02 %11.87 %11.66 %
Total capital$1,741,755 $1,744,802 $1,708,817 $1,676,532 $1,493,100 
Total capital ratio15.41 %15.55 %15.37 %15.19 %13.54 %
Total capital in excess of minimum requirement$554,834 $566,795 $541,263 $517,902 $335,229 
Total risk-weighted assets$11,304,012 $11,219,114 $11,119,560 $11,034,570 $11,027,347 
Leverage ratio9.34 %9.55 %9.55 %8.98 %9.49 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets13.97 %14.29 %14.11 %13.99 %14.47 %
Ending tangible shareholders' equity to ending tangible assets8.22 %8.47 %8.25 %8.09 %8.25 %
Average shareholders' equity to average assets14.17 %14.07 %14.08 %13.91 %15.21 %
Average tangible shareholders' equity to average tangible assets8.38 %8.26 %8.18 %7.94 %8.79 %
REPURCHASE PROGRAM (1)
Shares repurchased840,115 0 0 0 880,000 
Average share repurchase price$21.40 N/AN/AN/A$18.96 
Total cost of shares repurchased$17,982 N/AN/AN/A$16,686 
(1) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable
8
® Earnings Presentation First Quarter 2021 Exhibit 99.2

 
Forward Looking Statement 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 declines in housing prices, high 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 of a slowing U.S. economy and increased unemployment 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 Statement 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, 2020, 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.

 
1Q 2021 Results 122nd Consecutive Quarter of Profitability 4 EOP assets increased $201.9 million compared to the linked quarter to $16.2 billion EOP loans increased $33.0 million compared to the linked quarter to $9.9 billion Average deposits increased $447.1 million compared to the linked quarter to $12.4 billion EOP investment securities increased $318.1 million compared to the linked quarter Balance Sheet Profitability Asset Quality Income Statement Capital Noninterest income = $40.3 million Noninterest expense = $92.5 million; $90.0 million as adjusted Efficiency ratio = 59.99%. Adjusted1 efficiency ratio = 58.41% Effective tax rate of 18.0%. Adjusted1 effective tax rate of 18.4% Net interest income = $113.9 million. Net interest margin of 3.35% on a GAAP basis; 3.40% on a fully tax equivalent basis1 Net income = $47.3 million or $0.48 per diluted share. Adjusted1 net income = $49.0 million or $0.50 per diluted share2 Return on average assets = 1.20%. Adjusted1 return on average assets = 1.24% Return on average shareholders’ equity = 8.44%. Adjusted1 return on average shareholders’ equity = 8.75% Return on average tangible common equity = 15.24%1. Adjusted1 return on average tangible common equity = 15.80% Provision expense = $4.0 million. Net charge-offs = $9.2 million. NCOs / Avg. Loans = 0.38% annualized Nonperforming Loans / Total Loans = 0.97%. Nonperforming Assets / Total Assets = 0.60% ACL / Nonaccrual Loans = 199.33%. Classified Assets / Total Assets = 1.22% ACL / Total loans = 1.71%; 1.84% of loans excluding PPP Total capital ratio = 15.41% Tier 1 common equity ratio = 11.81% Tangible common equity ratio = 8.22%; 8.62% excluding PPP loans Tangible book value per share = $12.78 Repurchased 840,115 shares during the quarter 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. 2 See Slide 27 for Adjusted Earnings detail. 1

 
1Q 2021 Highlights Quarterly earnings driven by strong fee income, lower expenses and lower credit costs Adjusted1 earnings per share - $0.50 Adjusted1 return on assets – 1.24% Adjusted1 pre-tax, pre-provision return on assets – 1.62% Adjusted1 return on average tangible common equity – 15.80% Loan balances bolstered by PPP activity; strong core deposit growth Loan balances increased $33.0 million compared to the linked quarter; PPP loan balances increased $95.3 million Average transactional deposit balances grew $523.7 million compared to the linked quarter; 21.1% on an annualized basis Noninterest bearing deposits were 31.6% of total deposits at March 31, 2021 Net interest margin (FTE) in line with expectations 9 bp decrease from fourth quarter driven by lower loan fees Net interest margin, excluding loan fees and loan accretion, increased 5 bp compared to the linked quarter Strong fee income, despite seasonal headwinds Adjusted1 noninterest income of $40.2 million Mortgage banking revenue remained elevated at $9.5 million, despite expected seasonal declines and lower premiums Foreign exchange income of $10.8 million; slight decline from record fourth quarter Core expenses declined $4.6 million from the linked quarter, driven by decline in incentive compensation and lower professional services expenses Adjusted1 noninterest expense of $90.0 million; Adjusted1 for $1.3 million in severance costs and $1.3 million of other non-recurring costs Efficiency ratio of 60.0%; 58.4% as adjusted1 Allowance for credit loss (ACL) and provision expense declined compared to linked quarter Loans and leases - ACL of $169.9 million; 1.71% of total loans, 1.84% excluding PPP; $3.5 million provision expense Unfunded Commitments - ACL of $13.0 million; $0.5 million provision expense Lower provision expense driven by improved credit outlook, partially offset by a large charge-off on a single relationship Effective tax rate of 18.0% positively impacted by higher tax-exempt income; 18.4% as adjusted1 Strong capital ratios Total capital of 15.41%; Tier 1 common equity of 11.81%; Tangible common equity of 8.22% Tangible book value decreased by $0.15 to $12.78 Tangible common equity of 8.62% excluding PPP 840,115 shares repurchased in first quarter 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. 5

 
Adjusted Net Income1 6 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 As Reported Adjusted Net interest income 113,876$ 113,876$ 118,473$ 118,473$ Provision for credit losses-loans and leases 3,450$ 3,450$ 13,758$ 13,758$ Provision for credit losses-unfunded commitments 538$ 538$ (2,250)$ (2,250)$ Noninterest income 40,322$ 40,322$ 61,515$ 61,515$ less: gains (losses) on investment securities - (54) A - 196 A - - A - 13,397 A less: other - 193 A - (157) A Total noninterest income 40,322$ 40,183$ 61,515$ 48,079$ Noninterest expense 92,506$ 92,506$ 114,798$ 114,798$ less: severance and merger-related expenses - 1,261 A - 29 A less: tax credit investment - 208 A - 5,071 A less: contribution to First Financial Foundation - - A - 5,000 A less: debt extinguishment - - A - 7,257 A less: COVID-19 and other - 1,054 A - 2,877 A Total noninterest expense 92,506$ 89,983$ 114,798$ 94,564$ Income before income taxes 57,704$ 60,088$ 53,682$ 60,480$ Income tax expense 10,389$ 10,389$ 5,370$ 5,370$ plus: after-tax impact of tax credit investment @ 21% - 164 - 4,005 plus: tax effect of adjustments (A) @ 21% statutory rate - 501 - 1,428 Total income tax expense 10,389$ 11,054$ 5,370$ 10,803$ Net income 47,315$ 49,034$ 48,312$ 49,677$ Net earnings per share - diluted 0.48$ 0.50$ 0.49$ 0.51$ Pre-tax, pre-provision return on average assets 1.56% 1.62% 1.62% 1.79% 1Q 2021 4Q 2020 less: gains from the redemption of Visa B shares

 
Profitability 7 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 $0.48$0.49 $0.42$0.38 $0.29 $0.50 $0.51 $0.44 $0.40 $0.31 1Q214Q203Q202Q201Q20 Diluted EPS Adjusted EPS 1 1.20%1.20% 1.04%0.96% 0.79% 1.24%1.23% 1.09% 1.00% 0.85% 1Q214Q203Q202Q201Q20 ROA Adjusted ROA 1 15.24%15.50% 13.61%12.90% 9.71% 15.80%15.94% 14.18%13.47% 10.41% 1Q214Q203Q202Q201Q20 ROATCE Adjusted ROATCE 1 59.9% 57.5% 60.3% 63.8% 60.0% 58.2% 56.1% 58.9% 56.8% 58.4% 1Q20 2Q20 3Q20 4Q20 1Q21 Efficiency Ratio Adjusted Efficiency Ratio 1

 
Net Interest Income & Margin 8 Net Interest Margin (FTE) 1Q21 NIM (FTE) Progression Net Interest Income All dollars shown in millions 4Q20 3.49% Asset yields/mix -0.05% Loan fees -0.06% PPP fees -0.06% Deposit costs 0.05% Funding mix 0.03% 1Q21 3.40% $3.2$5.5$3.8$3.3 $3.1 $3.4 $3.9$5.4$5.8 $4.9 $10.0 $12.5 $6.2$4.5 $113.9 $118.5 $112.2$111.6 $114.3 1Q214Q203Q202Q201Q20 Loan Fees Loan Accretion PPP Interest/Fees 2.96%2.91%2.97% 3.09% 3.51% 0.09%0.15%0.11% 0.10% 0.10% 0.25%0.31%0.12% 0.08% 0.10% 0.12% 0.16% 0.17% 0.16% 3.40% 3.49% 3.36% 3.44% 3.77% 1Q214Q203Q202Q201Q20 Basic Margin (FTE) Loan Fees PPP Fees Loan Accretion

 
Average Balance Sheet 9 Average Loans Average Securities Average Deposits All dollars shown in millions 1 Includes loans fees and loan accretion $9,952$10,128$10,253$10,002$9,221 4.03%4.18%4.00% 4.25% 5.04% 1Q214Q203Q202Q201Q20 Gross Loans Loan Yield (Gross) 1 $12,372$11,925$11,563$11,731$10,234 0.14%0.20% 0.27% 0.40% 0.64% 1Q214Q203Q202Q201Q20 Total Deposits Cost of Deposits $3,783$3,404$3,163$3,164$3,116 2.54% 2.71% 2.86%2.97% 3.04% 1Q214Q203Q202Q201Q20 Average Investment Securities Investment Securities Yield

 
Loan Portfolio 10 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) 1 Net of unearned fees of $21.9 million All dollars shown in millions Total growth/(decline): $33.0 million ICRE & Other $4,005 40% Commercial & Small Business Banking $2,429 25% Consumer $804 8% Mortgage $1,015 10% Oak Street $585 6% Franchise $406 4% PPP $690 7% Total $9.9 Billion 1 $85.4 -$41.2 -$30.4 -$58.9 $0.3 -$17.5 $95.3 ICRE & Other Commercial & Small Business Banking Consumer Mortgage Oak Street Franchise PPP

 
Deposits 11 Deposit Product Mix (Avg) 1Q21 Average Deposit Progression All dollars shown in millions Total growth/(decline): $447.1 million $76.3 $137.2 $70.0 $202.1 -$73.6 $4.1 $31.0 Interest-bearing demand Noninterest-bearing Savings Money Markets Retail CDs Brokered CDs Public Funds Interest-bearing demand $1,736 14% Noninterest- bearing $3,653 29% Savings $1,154 9% Money Markets $2,293 19% Retail CDs $1,064 9% Brokered CDs $618 5% Public Funds $1,854 15% Total $12.4 billion

 
Noninterest Income 12 Noninterest Income 1Q21 Highlights All dollars shown in thousands Total fee income 26.1% of net revenue $9.5 million of mortgage banking income $10.8 million of foreign exchange income Trust and wealth management fees increased 7.5% from the linked quarter to $4.4 million Service Charges $7,146 18% Wealth Mgmt $4,398 11% Bankcard $3,128 8% Client derivatives $1,556 4% Foreign exchange income $10,757 27% Mortgage origination income $9,454 23% Gains from redemption of Visa B shares $- 0% Other $3,883 9% Total $40.3 million

 
Noninterest Expense 13 Noninterest Expense 1Q21 Highlights All dollars shown in thousands Core expenses declined $4.6 million from the linked quarter, driven by decline in incentive compensation and professional services $1.3 million of severance costs $0.2 million tax credit investment write-down $1.1 million of other nonrecurring costs; primarily related to branch consolidation activity Salaries and benefits $61,253 66% Occupancy and equipment $9,673 10% Data processing $7,287 8% Professional services $1,450 2% Intangible amortization $2,479 3% Other $10,364 11% Total $92.5 million

 
Current Expected Credit Losses - Loans and Leases 14 ACL / Total Loans 1Q21 Highlights All dollars shown in thousands $169.9 million, or 1.71% of loan balances; 1.84% excluding PPP $3.5 million provision expense; decline driven by improved credit outlook, partially offset by a large charge-off on a single relationship Utilized final March Moody’s baseline forecast in quantitative model $13.0 million ACL – unfunded commitments; $0.5 million provision expense for this portion of the ACL due to slower prepayment speeds ACL by Loan Type 1 $169.9$175.7$168.5 $158.7 $143.9 1.71%1.77% 1.65% 1.56% 1.55% 1Q214Q203Q202Q201Q20 Allowance for Credit Losses ACL / Total Loans 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Loans Commercial and industrial 45,409$ 50,421$ 50,516$ 51,454$ 45,139$ Lease financing 1,494 1,431 1,287 995 1,015 Real estate -construction 13,511 15,357 18,970 21,736 22,734 Real estate - commercial 53,155 62,340 72,207 76,795 78,669 Real estate - residential 11,284 10,581 9,286 8,560 7,748 Home equity 14,827 14,236 12,530 11,869 10,760 Installment 1,238 1,226 1,237 1,215 1,235 Credit card 2,967 3,069 2,511 3,055 2,623 ACL-loan and lease losses 143,885$ 158,661$ 168,544$ 175,679$ 169,923$ ACL-unfunded commitments 14,308$ 16,678$ 14,753$ 12,503$ 13,040$

 
Asset Quality 15 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 1 1 $196.8 $142.0 $134.0 $125.5$124.5 1.22% 0.89% 0.84% 0.79%0.83% 1Q214Q203Q202Q201Q20 Classified Assets Classified Assets / Total Assets $97.7 $89.1$87.3 $78.1 $72.2 0.60%0.56%0.55%0.49%0.48% 1Q214Q203Q202Q201Q20 NPAs NPAs / Total Assets -$0.9 $3.1 $5.4 $6.6 $9.2 $25.4 $20.2 $13.4 $11.5 $4.0 0.38% 0.26% 0.21% 0.12% -0.04% 1Q20 2Q20 3Q20 4Q20 1Q21 NCOs Provision Expense NCOs / Average Loans

 
Capital 16 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 3/31 Risk Weighted Assets = $11,304,012 1 Increased 165 basis points due to sub-debt issuance in beginning of second quarter All capital numbers are considered preliminary. Tier 1 Capital Ratio 2 2 1 8.22% 8.47% 8.25% 8.09% 8.25% 1Q214Q203Q202Q201Q20 Tangible Common Equity Ratio 12.19%12.20%12.02%11.87% 11.66% 8.50% 1Q214Q203Q202Q201Q20 Tier 1 Capital Ratio Basel III minimum 15.41%15.55%15.37%15.19% 13.54% 10.50% 1Q214Q203Q202Q201Q20 Total Capital Ratio Basel III minimum 1 11.81%11.82%11.63%11.49%11.27% 7.00% 1Q214Q203Q202Q201Q20 Tier 1 Common Equity Ratio Basel III minimum

 
Capital Strategy 17 Strategy & DeploymentTangible Book Value Per Share 3.8% annualized dividend yield Most recent internal stress testing indicates capital ratios above regulatory minimums in all modeled scenarios Dividend payout ratio to remain elevated in near-term, but is subject to change based on economic conditions and the Company’s financial performance 840,115 shares repurchased in first quarter at an average price of $21.401 1 $12.78 $12.93 $12.56 $12.26 $11.82 1Q214Q203Q202Q201Q20 Tangible Book Value per Share

 
® COVID – 19 Related Information

 
Loan Concentrations 19 C&I Loans by Industry 1 CRE Loans by Collateral 2 1 Industry types included in Other representing greater than 1% of total C&I loans include Transportation & Warehousing, Agriculture, Public Administration, Arts & Recreation, Educational Services, and Waste Management. Includes owner-occupied CRE. 2 Collateral types included in Other representing greater than 1% of total CRE loans include Warehouse, Medical Office, Residential Multi Family 5+ Construction, Student Housing, Real Estate IUB Other, and Commercial Lot. Finance & Insurance 15% Manufacturing 15% Accommodation & Food Services 12% Real Estate 11% Health Care 7% Construction 6% Professional & Tech 6% Wholesale Trade 5% Other Services 5%Retail Trade 4% Other 14% C&I Loans: $4.1B Residential, Multi Family 5+ 24% Retail 15% Office 14% Hotel/Motel 11% Nursing/Assisted Living 6% Strip Center 5% Industrial Facility 3% Residential, 1-4 Family 3% Restaurant 3% Other 16% CRE Loans: $4.0B

 
CARES Act Modifications as of 3/31/21 $226 million of loan modifications making interest only payments $251 million of total active modifications; 2.5% of total loans $153 million, or 61% of total deferrals are hotel loans Expected to steadily decline through 3Q21 No material credit issues among loans that have exited deferral 20 All dollars shown in millions Active deferrals by round Active modifications by payment typeActive modifications by category Hotel $153 61% Other $54 21% Franchise $44 18% Round 1 $6 2% Round 2 $22 9% Round 3 $223 89% Interest Only payments $226 90% Full Payment deferral $25 10%

 
Area of Focus - Hotel Portfolio $442 million balance represents 4.4% of the total loan portfolio $143 million, or 93% of total hotel deferrals, making interest only payments as of 3/31/21 Significant improvement in hotel occupancy and rates for 2021; in excess of 50% occupancy and $120/night The overall health of the hotel portfolio was strong Pre-COVID with an average DSC of 1.58x. Limited deterioration in average LTV reflected in updated appraisals received Overall, we have little exposure to large convention center hotels or fly-to-leisure destinations $44.2 million rated substandard or worse 21 All dollars shown in millions Hotels by Flag Hotels by Geography $148 33% $157 36% $64 14% $34 8% $39 9% Marriott Hilton IHG Choice Other $344 78% $98 22% Footprint Out of Footprint

 
Area of Focus - Franchise Portfolio $406 million in balances or 4% of total loans Drive thru and delivery continue to provide strong performance while a portion of our sit- down book navigates pandemic related headwinds $44 million, or 11% of total franchise loans are in deferral as of 3/31/2021; all sit down concepts $32 million, or 73% are making interest only payments 22 Top 10 Concepts Sit-down ConceptsRestaurant Type All dollars shown in millions 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 % o f P o rt fo li o B a la n ce s Balances % of Portfolio Delivery $105 26% Drive Thru $186 46% Sit Down $116 28% $0 $5 $10 $15 $20 $25 $30 $35 $40 Denny's Golden Corral IHOP five guys Jersey Mike's Subway QDOBA Other B a la n ce s Deferral Making full payments

 
Outlook Commentary1 Loan balances expected to remain flat in near term, excluding impact of PPP; low single digit growth expected in back half of the year Average securities balances expected to increase approximately $250 million in second quarter Deposit balances expected to stabilize 23 Relatively flat in near term, but will fluctuate with fee incomeNoninterest Expense Net Interest Margin Balance Sheet Credit Lower provision expense expected for remainder of the year Allowance for credit losses expected to continually decline over 2021 Noninterest Income Modest increase in mortgage banking income, with seasonal increases in volume mostly offset by lower premiums Foreign exchange income expected to remain relatively flat in near term Deposit service charges to remain under pressure given higher deposit balances Bankcard income to grow in near-term with increase in customer spending 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. Will be impacted by timing of PPP forgiveness fees Expected to be under modest pressure from the low interest rate environment, excess liquidity on the balance sheet and increases to the securities portfolio. Capital Will continue to evaluate capital deployment opportunities, including share repurchases

 
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 Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2021 2020 2020 2020 2020 Net interest income 113,876$ 118,473$ 112,180$ 111,576$ 114,282$ Tax equivalent adjustment 1,652 1,613 1,628 1,664 1,624 Net interest income - tax equivalent 115,528$ 120,086$ 113,808$ 113,240$ 115,906$ Average earning assets 13,781,760$ 13,675,604$ 13,456,501$ 13,258,612$ 12,375,698$ Net interest margin 1 3.35 % 3.45 % 3.32 % 3.38 % 3.71 % Net interest margin (fully tax equivalent) 1 3.40 % 3.49 % 3.36 % 3.44 % 3.77 % 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 Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, (Dollars in thousands, except per share data) 2021 2020 2020 2020 2020 Net income (a) 47,315$ 48,312$ 41,477$ 37,393$ 28,628$ Average total shareholders' equity 2,272,749 2,256,062 2,230,422 2,185,865 2,209,733 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (63,529) (66,195) (69,169) (72,086) (75,014) MSR's (12,749) (12,186) (11,274) (10,254) (10,608) Average tangible equity (b) 1,258,700 1,239,910 1,212,208 1,165,754 1,186,340 Total shareholders' equity 2,258,942 2,282,070 2,247,815 2,221,019 2,179,383 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (61,984) (64,552) (67,419) (70,325) (73,258) MSR's (13,156) (12,810) (12,011) (11,250) (10,278) Ending tangible equity (c) 1,246,031 1,266,937 1,230,614 1,201,673 1,158,076 Total assets 16,175,071 15,973,134 15,925,647 15,870,890 15,057,567 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (61,984) (64,552) (67,419) (70,325) (73,258) MSR's (13,156) (12,810) (12,011) (11,250) (10,278) Ending tangible assets (d) 15,162,160 14,958,001 14,908,446 14,851,544 14,036,260 Risk-weighted assets (e) 11,304,012 11,219,114 11,119,560 11,034,570 11,027,347 Total average assets 16,042,654 16,030,986 15,842,010 15,710,204 14,524,422 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (63,529) (66,195) (69,169) (72,086) (75,014) MSR's (12,749) (12,186) (11,274) (10,254) (10,608) Average tangible assets (f) 15,028,605$ 15,014,834$ 14,823,796$ 14,690,093$ 13,501,029$ Ending shares outstanding (g) 97,517,693 98,021,929 97,999,763 98,018,858 97,968,958 Ratios Return on average tangible shareholders' equity (a)/(b) 15.24% 15.50% 13.61% 12.90% 9.71% Ending tangible equity as a percent of: Ending tangible assets (c)/(d) 8.22% 8.47% 8.25% 8.09% 8.25% Risk-weighted assets (c)/(e) 11.02% 11.29% 11.07% 10.89% 10.50% Average tangible equity as a percent of average tangible assets (b)/(f) 8.38% 8.26% 8.18% 7.94% 8.79% Tangible book value per share (c)/(g) 12.78$ 12.93$ 12.56$ 12.26$ 11.82$ Three months ended

 
Appendix: Non-GAAP to GAAP Reconciliation 27 Additional non-GAAP measures 3Q20 2Q20 1Q20 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 113,876$ 113,876$ 118,473$ 118,473$ 112,180$ 112,180$ 111,576$ 111,576$ 114,282$ 114,282$ Provision for credit losses-loans and leases (j) 3,450 3,450 13,758 13,758 15,299 15,299 17,859 17,859 23,880 23,880 Provision for credit losses-unfunded commitments (j) 538 538 (2,250) (2,250) (1,925) (1,925) 2,370 2,370 1,568 1,568 Noninterest income 40,322 40,322 61,515 61,515 49,499 49,499 42,725 42,725 35,384 35,384 less: gains (losses) on sale of investment securities (54) 196 20 128 (157) less: gains from the redemption of Visa B shares - 13,397 less: other 193 (157) Total noninterest income (g) 40,322 40,183 61,515 48,079 49,499 49,479 42,725 42,597 35,384 35,541 Noninterest expense 92,506 92,506 114,798 114,798 97,511 97,511 88,689 88,689 89,666 89,666 less: severance and merger-related expenses 1,261 29 95 35 329 less: tax credit investments 208 5,071 less: contribution to First Financial Foundation - 5,000 less: debt extinguishment - 7,257 less: COVID-19 and other 1,054 2,877 2,126 2,167 2,150 Total noninterest expense (e) 92,506 89,983 114,798 94,564 97,511 95,290 88,689 86,487 89,666 87,187 Income before income taxes (i) 57,704 60,088 53,682 60,480 50,794 52,995 45,383 47,457 34,552 37,188 Income tax expense 10,389 10,389 5,370 5,370 9,317 9,317 7,990 7,990 5,924 5,924 plus: tax effect of adjustments 501 1,428 462 436 554 plus: after-tax impact of tax credit investments @ 21% 164 4,005 Total income tax expense (h) 10,389 11,054 5,370 10,803 9,317 9,779 7,990 8,426 5,924 6,478 Net income (a) 47,315$ 49,034$ 48,312$ 49,677$ 41,477$ 43,216$ 37,393$ 39,031$ 28,628$ 30,710$ Average diluted shares (b) 97,728 97,728 98,021 98,021 98,009 98,009 97,989 97,989 98,356 98,356 Average assets (c) 16,042,654 16,042,654 16,030,986 16,030,986 15,842,010 15,842,010 15,710,204 15,710,204 14,524,422 14,524,422 Average shareholders' equity 2,272,749 2,272,749 2,256,062 2,256,062 2,230,422 2,230,422 2,185,865 2,185,865 2,209,733 2,209,733 Less: Goodwill and other intangibles (1,014,049) (1,014,049) (1,016,152) (1,016,152) (1,018,214) (1,018,214) (1,020,111) (1,020,111) (1,023,393) (1,023,393) Average tangible equity (d) 1,258,700 1,258,700 1,239,910 1,239,910 1,212,208 1,212,208 1,165,754 1,165,754 1,186,340 1,186,340 Ratios Net earnings per share - diluted (a)/(b) 0.48$ 0.50$ 0.49$ 0.51$ 0.42$ 0.44$ 0.38$ 0.40$ 0.29$ 0.31$ Return on average assets - (a)/(c) 1.20% 1.24% 1.20% 1.23% 1.04% 1.09% 0.96% 1.00% 0.79% 0.85% Pre-tax, pre-provision return on average assets - ((a)+(j)+(h))/(c) 1.56% 1.62% 1.62% 1.79% 1.61% 1.67% 1.68% 1.73% 1.66% 1.73% Return on average tangible shareholders' equity - (a)/(d) 15.24% 15.80% 15.50% 15.94% 13.61% 14.18% 12.90% 13.47% 9.71% 10.41% Efficiency ratio - (e)/((f)+(g)) 60.0% 58.4% 63.8% 56.8% 60.3% 58.9% 57.5% 56.1% 59.9% 58.2% Effective tax rate - (h)/(i) 18.0% 18.4% 10.0% 17.9% 18.3% 18.5% 17.6% 17.8% 17.1% 17.4% (Dollars in thousands, except per share data) 1Q21 4Q20

 
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