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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): October 21, 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 October 21, 2021, First Financial Bancorp. (the "Company") issued its earnings press release that included its results of operations and financial condition for the first nine months and third quarter 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 October 21, 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:October 21, 2021

                    




                                                Exhibit 99.1
yellowbara12a.jpgbancorplogoa04a.jpg                                        
First Financial Bancorp Announces Third Quarter 2021 Financial Results

•Earnings per diluted share of $0.63 and on both GAAP and adjusted(1) basis
•Return on average assets of 1.49% on both GAAP and adjusted(1) basis
•Net interest margin FTE(1) of 3.32%
•Loan growth of $74.8 million, excluding decline in PPP loans
•Provision recapture of $10.1 million
•Repurchased 2,484,295 shares during the quarter

Cincinnati, Ohio - October 21, 2021 First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and nine months ended September 30, 2021.

For the three months ended September 30, 2021, the Company reported net income of $60.0 million, or $0.63 per diluted common share. These results compare to net income of $50.9 million, or $0.52 per diluted common share, for the second quarter of 2021 and $41.5 million, or $0.42 per diluted common share, for the third quarter of 2020. For the nine months ended September 30, 2021, First Financial had earnings per diluted common share of $1.64 compared to $1.10 for the same period in 2020.

Return on average assets for the third quarter of 2021 was 1.49% while return on average tangible common equity was 19.03%(1). These compare to returns on average assets of 1.26% and 1.04%, and returns on average tangible common equity of 16.31%(1) and 13.61%(1), in the second quarter of 2021 and the third quarter of 2020, respectively.

Third quarter 2021 highlights include:

•Net interest margin of 3.32% on a fully tax-equivalent basis(1) in line with expectations
◦1 basis point increase from linked quarter driven by PPP forgiveness, which offset lower yields on earning assets

•Noninterest income of $42.5 million, or $42.2 million as adjusted(1)
◦Strong mortgage banking income of $8.6 million driven by higher premiums during the period
◦Elevated wealth management fees of $5.9 million
◦Other noninterest income increased $1.1 million, or 34.3%; driven by income from limited partnership investments and insurance proceeds

•Noninterest expenses of $99.1 million, or $93.6 million as adjusted(1)
◦Adjustments(1) include:
▪$5.3 million of tax credit investment write-downs
◦Increase in expenses driven by incentive compensation tied to the Company's strong financial performance and modest increases in marketing costs and professional services
◦Efficiency ratio of 63.5%; 60.1% as adjusted(1)

•Loan balances declined $150.6 million from the second quarter driven by PPP forgiveness of $225.4 million during the quarter
◦Core loan balances increased $74.8 million, or 3.3% on an annualized basis compared to the second quarter
◦Non-PPP C&I loan balances increased 16.0% 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 $160.5 million; Total quarterly provision recapture of $10.1 million
◦Loans and leases - ACL of $148.9 million, 1.59% of total loans; 1.62% of loans excluding PPP
◦Unfunded Commitments - ACL of $11.6 million
◦Provision recapture driven by improvements in economic conditions, declining classified asset balances, and lower net charge-offs

•Strong capital ratios
◦Total capital of 14.97%
◦Tier 1 common equity of 11.54%
◦Tangible common equity of 8.21%(1); 8.31%(1) excluding PPP loans
◦Tangible book value per share of $13.09(1)
◦Repurchased 2,484,295 shares during third quarter; 4,633,355 shares repurchased in 2021

Archie Brown, President and Chief Executive Officer, commented, “We are pleased to announce third quarter results that are highlighted by robust earnings, loan growth, strong fee income, lower credit costs and improving credit trends.”

Mr. Brown continued, “Third quarter results were strong across the board, with earnings per share of $0.63, return on assets of 1.49% and an adjusted(1) efficiency ratio of 60.1%. Third quarter earnings were the highest they’ve been since the MainSource merger in 2018, and were highlighted by significant provision recapture of $10.1 million. Provision recapture during the period was a result of improving credit quality trends, specifically, lower net charge-offs and declines in classified asset balances, and we expect further reductions in credit costs in the fourth quarter of 2021 and the first part of 2022 given our optimism for further economic recovery. In addition, earnings were positively impacted by elevated mortgage and wealth management revenues and we were encouraged by strong loan originations during the period."

Mr. Brown added, “Total loan balances declined $150.6 million driven by $225.4 million in PPP forgiveness during the quarter. Core loan balances increased $74.8 million for the period as a result of strong origination activity, which included 16.0% growth in the C&I portfolio on an annualized basis. Our origination levels more than offset loan payoffs which remained high, particularly in our specialty finance and ICRE units. Additionally, we are encouraged that loan pipeline activity has increased.”

Mr. Brown commented regarding the share repurchase program, “During the quarter we repurchased approximately 2.5 million shares at an average price of $23.04 bringing our total shares repurchased in 2021 to 4.6 million. When combined with the common dividend, the share repurchases approximate a return to shareholders of 131.7% of quarterly earnings. There are 366,645 shares remaining in our current buyback authorization.”

Mr. Brown concluded, “We were also very pleased to bring our associates back to our physical office locations during the quarter, albeit with greater flexibility than pre-Covid. We firmly believe we are stronger when we are together, and we have already witnessed how combining best practices learned from the pandemic with our culture of collaboration positively impacts our clients and financial performance.”

Full detail of the Company’s third quarter 2021 performance is provided in the accompanying financial statements and slide presentation.
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Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, October 22, 2021 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (833) 950-0062 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 674818. 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 979537. The recording will be available until November 5, 2021. 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;  
3

•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.

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 September 30, 2021, the Company had $16.0 billion in assets, $9.4 billion in loans, $12.7 billion in deposits and $2.2 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.2 billion in assets under management as of September 30, 2021. The Company operated 139 full service banking centers as of September 30, 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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contentsheader0215a23a.jpg
Selected Financial Information
September 30, 2021
(unaudited)

ContentsPage
Consolidated Financial Highlights2
Consolidated 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,Nine months ended,
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,September 30,
2021202120212020202020212020
RESULTS OF OPERATIONS
Net income$60,012 $50,888 $47,315 $48,312 $41,477 $158,215 $107,498 
Net earnings per share - basic$0.64 $0.53 $0.49 $0.50 $0.43 $1.65 $1.10 
Net earnings per share - diluted$0.63 $0.52 $0.48 $0.49 $0.42 $1.64 $1.10 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 $0.69 $0.69 
KEY FINANCIAL RATIOS
Return on average assets1.49 %1.26 %1.20 %1.20 %1.04 %1.32 %0.93 %
Return on average shareholders' equity10.53 %9.02 %8.44 %8.52 %7.40 %9.34 %6.50 %
Return on average tangible shareholders' equity (1)
19.03 %16.31 %15.24 %15.50 %13.61 %16.87 %12.08 %
Net interest margin3.28 %3.27 %3.35 %3.45 %3.32 %3.30 %3.46 %
Net interest margin (fully tax equivalent) (1)(2)
3.32 %3.31 %3.40 %3.49 %3.36 %3.34 %3.52 %
Ending shareholders' equity as a percent of ending assets14.01 %14.15 %13.97 %14.29 %14.11 %14.01 %14.11 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
8.21 %8.37 %8.22 %8.47 %8.25 %8.21 %8.25 %
Risk-weighted assets (1)
10.76 %11.12 %11.02 %11.29 %11.07 %10.76 %11.07 %
Average shareholders' equity as a percent of average assets14.14 %13.96 %14.17 %14.07 %14.08 %14.09 %14.38 %
Average tangible shareholders' equity as a percent of
    average tangible assets (1)
8.35 %8.23 %8.38 %8.26 %8.18 %8.32 %8.29 %
Book value per share$23.85 $23.59 $23.16 $23.28 $22.94 $23.85 $22.94 
Tangible book value per share (1)
$13.09 $13.08 $12.78 $12.93 $12.56 $13.09 $12.56 
Common equity tier 1 ratio (3)
11.54 %11.78 %11.81 %11.82 %11.63 %11.54 %11.63 %
Tier 1 ratio (3)
11.92 %12.16 %12.19 %12.20 %12.02 %11.92 %12.02 %
Total capital ratio (3)
14.97 %15.31 %15.41 %15.55 %15.37 %14.97 %15.37 %
Leverage ratio (3)
9.05 %9.14 %9.34 %9.55 %9.55 %9.05 %9.55 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$9,502,750 $9,831,965 $9,951,855 $10,127,881 $10,253,392 $9,760,545 $9,827,033 
Investment securities4,189,253 4,130,207 3,782,993 3,403,839 3,162,832 4,035,639 3,147,655 
Interest-bearing deposits with other banks32,400 45,593 46,912 143,884 40,277 41,582 57,138 
  Total earning assets$13,724,403 $14,007,765 $13,781,760 $13,675,604 $13,456,501 $13,837,766 $13,031,826 
Total assets$15,995,808 $16,215,469 $16,042,654 $16,030,986 $15,842,010 $16,084,472 $15,360,642 
Noninterest-bearing deposits$3,981,404 $4,003,626 $3,840,046 $3,720,417 $3,535,432 $3,942,210 $3,172,841 
Interest-bearing deposits8,685,949 8,707,553 8,531,822 8,204,306 8,027,082 8,642,339 8,004,450 
  Total deposits$12,667,353 $12,711,179 $12,371,868 $11,924,723 $11,562,514 $12,584,549 $11,177,291 
Borrowings$562,964 $749,114 $886,379 $1,307,461 $1,519,748 $731,634 $1,509,482 
Shareholders' equity$2,261,293 $2,263,687 $2,272,749 $2,256,062 $2,230,422 $2,265,868 $2,208,753 
CREDIT QUALITY RATIOS
Allowance to ending loans1.59 %1.68 %1.71 %1.77 %1.65 %1.59 %1.65 %
Allowance to nonaccrual loans225.73 %184.77 %199.33 %217.55 %216.28 %225.73 %216.28 %
Allowance to nonperforming loans192.35 %162.12 %175.44 %199.97 %196.69 %192.35 %196.69 %
Nonperforming loans to total loans0.83 %1.03 %0.97 %0.89 %0.84 %0.83 %0.84 %
Nonperforming assets to ending loans, plus OREO0.83 %1.04 %0.98 %0.90 %0.86 %0.83 %0.86 %
Nonperforming assets to total assets0.49 %0.62 %0.60 %0.56 %0.55 %0.49 %0.55 %
Classified assets to total assets1.04 %1.14 %1.22 %0.89 %0.84 %1.04 %0.84 %
Net charge-offs to average loans (annualized)0.10 %0.23 %0.38 %0.26 %0.21 %0.24 %0.10 %

(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) September 30, 2021 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,Nine months ended,
September 30,September 30,
20212020% Change20212020% Change
Interest income
  Loans and leases, including fees$96,428 $103,249 (6.6)%$292,853 $324,924 (9.9)%
  Investment securities
     Taxable20,088 17,906 12.2 %58,219 55,387 5.1 %
     Tax-exempt4,282 4,884 (12.3)%14,196 14,403 (1.4)%
        Total investment securities interest24,370 22,790 6.9 %72,415 69,790 3.8 %
  Other earning assets23 31 (25.8)%76 220 (65.5)%
       Total interest income120,821 126,070 (4.2)%365,344 394,934 (7.5)%
Interest expense
  Deposits3,320 7,886 (57.9)%11,346 36,002 (68.5)%
  Short-term borrowings68 51 33.3 %188 6,412 (97.1)%
  Long-term borrowings4,023 5,953 (32.4)%12,498 14,482 (13.7)%
      Total interest expense7,411 13,890 (46.6)%24,032 56,896 (57.8)%
      Net interest income113,410 112,180 1.1 %341,312 338,038 1.0 %
  Provision for credit losses-loans and leases (8,193)15,299 (153.6)%(9,499)57,038 (116.7)%
  Provision for credit losses-unfunded commitments (1,951)(1,925)1.4 %(896)2,013 (144.5)%
      Net interest income after provision for credit losses123,554 98,806 25.0 %351,707 278,987 26.1 %
Noninterest income
  Service charges on deposit accounts8,548 7,356 16.2 %23,231 21,792 6.6 %
  Trust and wealth management fees5,896 4,940 19.4 %17,742 15,891 11.6 %
  Bankcard income3,838 3,124 22.9 %10,698 8,666 23.4 %
  Client derivative fees2,273 2,203 3.2 %5,624 8,292 (32.2)%
  Foreign exchange income9,191 10,530 (12.7)%31,985 27,072 18.1 %
  Net gains from sales of loans8,586 18,594 (53.8)%26,529 38,087 (30.3)%
  Net gains (losses) on sale of investment securities(314)2 N/M(745)(55)N/M
  Unrealized gain (loss) on equity securities108 18 N/M381 70 N/M
  Other4,411 2,732 61.5 %10,401 7,793 33.5 %
      Total noninterest income42,537 49,499 (14.1)%125,846 127,608 (1.4)%
Noninterest expenses
  Salaries and employee benefits61,717 63,769 (3.2)%183,754 174,516 5.3 %
  Net occupancy5,571 5,625 (1.0)%16,810 17,107 (1.7)%
  Furniture and equipment3,318 3,638 (8.8)%10,658 11,372 (6.3)%
  Data processing7,951 6,837 16.3 %23,102 20,245 14.1 %
  Marketing2,435 1,856 31.2 %5,831 4,415 32.1 %
  Communication669 855 (21.8)%2,253 2,652 (15.0)%
  Professional services2,199 2,443 (10.0)%5,678 6,923 (18.0)%
  State intangible tax1,202 1,514 (20.6)%3,605 4,544 (20.7)%
  FDIC assessments1,466 1,350 8.6 %4,177 4,045 3.3 %
  Intangible amortization 2,479 2,779 (10.8)%7,438 8,362 (11.0)%
  Other10,051 6,845 46.8 %27,901 21,685 28.7 %
      Total noninterest expenses99,058 97,511 1.6 %291,207 275,866 5.6 %
Income before income taxes67,033 50,794 32.0 %186,346 130,729 42.5 %
Income tax expense7,021 9,317 (24.6)%28,131 23,231 21.1 %
      Net income$60,012 $41,477 44.7 %$158,215 $107,498 47.2 %
ADDITIONAL DATA
Net earnings per share - basic$0.64 $0.43 $1.65 $1.10 
Net earnings per share - diluted$0.63 $0.42 $1.64 $1.10 
Dividends declared per share$0.23 $0.23 $0.69 $0.69 
Return on average assets1.49 %1.04 %1.32 %0.93 %
Return on average shareholders' equity10.53 %7.40 %9.34 %6.50 %
Interest income$120,821 $126,070 (4.2)%$365,344 $394,934 (7.5)%
Tax equivalent adjustment1,434 1,628 (11.9)%4,705 4,916 (4.3)%
   Interest income - tax equivalent122,255 127,698 (4.3)%370,049 399,850 (7.5)%
Interest expense7,411 13,890 (46.6)%24,032 56,896 (57.8)%
   Net interest income - tax equivalent$114,844 $113,808 0.9 %$346,017 $342,954 0.9 %
Net interest margin3.28 %3.32 %3.30 %3.46 %
Net interest margin (fully tax equivalent) (1)
3.32 %3.36 %3.34 %3.52 %
Full-time equivalent employees2,026 2,065 
(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)
2021
ThirdSecondFirstYear to% Change
QuarterQuarterQuarterDateLinked Qtr.
Interest income
  Loans and leases, including fees$96,428 $97,494 $98,931 $292,853 (1.1)%
  Investment securities
     Taxable20,088 19,524 18,607 58,219 2.9 %
     Tax-exempt4,282 4,871 5,043 14,196 (12.1)%
        Total investment securities interest24,370 24,395 23,650 72,415 (0.1)%
  Other earning assets23 25 28 76 (8.0)%
       Total interest income120,821 121,914 122,609 365,344 (0.9)%
Interest expense
  Deposits3,320 3,693 4,333 11,346 (10.1)%
  Short-term borrowings68 53 67 188 28.3 %
  Long-term borrowings4,023 4,142 4,333 12,498 (2.9)%
      Total interest expense7,411 7,888 8,733 24,032 (6.0)%
      Net interest income113,410 114,026 113,876 341,312 (0.5)%
  Provision for credit losses-loans and leases (8,193)(4,756)3,450 (9,499)72.3 %
  Provision for credit losses-unfunded commitments (1,951)517 538 (896)(477.4)%
      Net interest income after provision for credit losses123,554 118,265 109,888 351,707 4.5 %
Noninterest income
  Service charges on deposit accounts8,548 7,537 7,146 23,231 13.4 %
  Trust and wealth management fees5,896 6,216 5,630 17,742 (5.1)%
  Bankcard income3,838 3,732 3,128 10,698 2.8 %
  Client derivative fees2,273 1,795 1,556 5,624 26.6 %
  Foreign exchange income9,191 12,037 10,757 31,985 (23.6)%
  Net gains from sales of loans8,586 8,489 9,454 26,529 1.1 %
  Net gains (losses) on sale of investment securities(314)(265)(166)(745)18.5 %
  Unrealized gain (loss) on equity securities108 161 112 381 (32.9)%
  Other4,411 3,285 2,705 10,401 34.3 %
      Total noninterest income42,537 42,987 40,322 125,846 (1.0)%
Noninterest expenses
  Salaries and employee benefits61,717 60,784 61,253 183,754 1.5 %
  Net occupancy5,571 5,535 5,704 16,810 0.7 %
  Furniture and equipment3,318 3,371 3,969 10,658 (1.6)%
  Data processing7,951 7,864 7,287 23,102 1.1 %
  Marketing2,435 2,035 1,361 5,831 19.7 %
  Communication669 746 838 2,253 (10.3)%
  Professional services2,199 2,029 1,450 5,678 8.4 %
  State intangible tax1,202 1,201 1,202 3,605 0.1 %
  FDIC assessments1,466 1,362 1,349 4,177 7.6 %
  Intangible amortization 2,479 2,480 2,479 7,438 0.0 %
  Other10,051 12,236 5,614 27,901 (17.9)%
      Total noninterest expenses99,058 99,643 92,506 291,207 (0.6)%
Income before income taxes67,033 61,609 57,704 186,346 8.8 %
Income tax expense7,021 10,721 10,389 28,131 (34.5)%
      Net income$60,012 $50,888 $47,315 $158,215 17.9 %
ADDITIONAL DATA
Net earnings per share - basic$0.64 $0.53 $0.49 $1.65 
Net earnings per share - diluted$0.63 $0.52 $0.48 $1.64 
Dividends declared per share$0.23 $0.23 $0.23 $0.69 
Return on average assets1.49 %1.26 %1.20 %1.32 %
Return on average shareholders' equity10.53 %9.02 %8.44 %9.34 %
Interest income$120,821 $121,914 $122,609 $365,344 (0.9)%
Tax equivalent adjustment1,434 1,619 1,652 4,705 (11.4)%
   Interest income - tax equivalent122,255 123,533 124,261 370,049 (1.0)%
Interest expense7,411 7,888 8,733 24,032 (6.0)%
   Net interest income - tax equivalent$114,844 $115,645 $115,528 $346,017 (0.7)%
Net interest margin3.28 %3.27 %3.35 %3.30 %
Net interest margin (fully tax equivalent) (1)
3.32 %3.31 %3.40 %3.34 %
Full-time equivalent employees2,026 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.
4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2020
FourthThirdSecondFirstFull
QuarterQuarterQuarterQuarterYear
Interest income
  Loans and leases, including fees$106,733 $103,249 $105,900 $115,775 $431,657 
  Investment securities
     Taxable18,402 17,906 18,476 19,005 73,789 
     Tax-exempt4,839 4,884 4,937 4,582 19,242 
        Total investment securities interest23,241 22,790 23,413 23,587 93,031 
  Other earning assets55 31 47 142 275 
       Total interest income130,029 126,070 129,360 139,504 524,963 
Interest expense
  Deposits5,920 7,886 11,751 16,365 41,922 
  Short-term borrowings30 51 1,274 5,087 6,442 
  Long-term borrowings5,606 5,953 4,759 3,770 20,088 
      Total interest expense11,556 13,890 17,784 25,222 68,452 
      Net interest income118,473 112,180 111,576 114,282 456,511 
  Provision for credit losses-loans and leases 13,758 15,299 17,859 23,880 70,796 
  Provision for credit losses-unfunded commitments (2,250)(1,925)2,370 1,568 (237)
      Net interest income after provision for credit losses106,965 98,806 91,347 88,834 385,952 
Noninterest income
  Service charges on deposit accounts7,654 7,356 6,001 8,435 29,446 
  Trust and wealth management fees5,395 4,940 5,254 5,697 21,286 
  Bankcard income3,060 3,124 2,844 2,698 11,726 
  Client derivative fees2,021 2,203 2,984 3,105 10,313 
  Foreign exchange income12,305 10,530 6,576 9,966 39,377 
  Net gains from sales of loans13,089 18,594 16,662 2,831 51,176 
  Net gains (losses) on sale of investment securities4,618 2 2 (59)4,563 
  Unrealized gain (loss) on equity securities8,975 18 150 (98)9,045 
  Other4,398 2,732 2,252 2,809 12,191 
      Total noninterest income61,515 49,499 42,725 35,384 189,123 
Noninterest expenses
  Salaries and employee benefits62,263 63,769 55,925 54,822 236,779 
  Net occupancy6,159 5,625 5,378 6,104 23,266 
  Furniture and equipment3,596 3,638 3,681 4,053 14,968 
  Data processing7,269 6,837 7,019 6,389 27,514 
  Marketing1,999 1,856 1,339 1,220 6,414 
  Communication840 855 907 890 3,492 
  Professional services3,038 2,443 2,205 2,275 9,961 
  Debt extinguishment7,257 0 0 0 7,257 
  State intangible tax1,514 1,514 1,514 1,516 6,058 
  FDIC assessments1,065 1,350 1,290 1,405 5,110 
  Intangible amortization 2,764 2,779 2,791 2,792 11,126 
  Other17,034 6,845 6,640 8,200 38,719 
      Total noninterest expenses114,798 97,511 88,689 89,666 390,664 
Income before income taxes53,682 50,794 45,383 34,552 184,411 
Income tax expense (benefit)5,370 9,317 7,990 5,924 28,601 
      Net income$48,312 $41,477 $37,393 $28,628 $155,810 
ADDITIONAL DATA
Net earnings per share - basic$0.50 $0.43 $0.38 $0.29 $1.60 
Net earnings per share - diluted$0.49 $0.42 $0.38 $0.29 $1.59 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.92 
Return on average assets1.20 %1.04 %0.96 %0.79 %1.00 %
Return on average shareholders' equity8.52 %7.40 %6.88 %5.21 %7.02 %
Interest income$130,029 $126,070 $129,360 $139,504 $524,963 
Tax equivalent adjustment1,613 1,628 1,664 1,624 6,529 
   Interest income - tax equivalent131,642 127,698 131,024 141,128 531,492 
Interest expense11,556 13,890 17,784 25,222 68,452 
   Net interest income - tax equivalent$120,086 $113,808 $113,240 $115,906 $463,040 
Net interest margin3.45 %3.32 %3.38 %3.71 %3.46 %
Net interest margin (fully tax equivalent) (1)
3.49 %3.36 %3.44 %3.77 %3.51 %
Full-time equivalent employees2,075 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.
5

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,% Change% Change
20212021202120202020Linked Qtr.Comp Qtr.
ASSETS
     Cash and due from banks$209,748 $206,918 $210,191 $231,054 $207,128 1.4 %1.3 %
     Interest-bearing deposits with other banks29,799 38,610 19,180 20,305 38,806 (22.8)%(23.2)%
     Investment securities available-for-sale4,114,094 3,955,839 3,753,763 3,424,580 3,004,963 4.0 %36.9 %
     Investment securities held-to-maturity103,886 112,456 121,945 131,687 118,072 (7.6)%(12.0)%
     Other investments97,831 129,432 131,814 133,198 118,292 (24.4)%(17.3)%
     Loans held for sale33,835 31,546 34,590 41,103 69,008 7.3 %(51.0)%
     Loans and leases
       Commercial and industrial2,602,848 2,701,203 3,044,825 3,007,509 3,292,313 (3.6)%(20.9)%
       Lease financing67,855 68,229 66,574 72,987 74,742 (0.5)%(9.2)%
       Construction real estate477,004 630,329 642,709 636,096 575,648 (24.3)%(17.1)%
       Commercial real estate4,438,374 4,332,561 4,396,582 4,307,858 4,347,125 2.4 %2.1 %
       Residential real estate922,492 932,112 946,522 1,003,086 1,027,702 (1.0)%(10.2)%
       Home equity709,050 711,756 709,667 743,099 754,743 (0.4)%(6.1)%
       Installment96,077 89,143 82,421 81,850 84,629 7.8 %13.5 %
       Credit card47,231 46,177 44,669 48,485 43,907 2.3 %7.6 %
          Total loans9,360,931 9,511,510 9,933,969 9,900,970 10,200,809 (1.6)%(8.2)%
       Less:
          Allowance for credit losses (148,903)(159,590)(169,923)(175,679)(168,544)(6.7)%(11.7)%
                Net loans 9,212,028 9,351,920 9,764,046 9,725,291 10,032,265 (1.5)%(8.2)%
     Premises and equipment192,580 192,238 204,537 207,211 209,474 0.2 %(8.1)%
     Goodwill 937,771 937,771 937,771 937,771 937,771 0.0 %0.0 %
     Other intangibles56,811 59,391 61,984 64,552 67,419 (4.3)%(15.7)%
     Accrued interest and other assets968,210 1,021,798 935,250 1,056,382 1,122,449 (5.2)%(13.7)%
       Total Assets$15,956,593 $16,037,919 $16,175,071 $15,973,134 $15,925,647 (0.5)%0.2 %
LIABILITIES
     Deposits
       Interest-bearing demand$2,916,860 $2,963,151 $2,914,761 $2,914,787 $2,632,467 (1.6)%10.8 %
       Savings4,223,905 4,093,229 4,006,181 3,680,774 3,446,678 3.2 %22.6 %
       Time1,517,419 1,548,109 1,731,757 1,872,733 1,935,392 (2.0)%(21.6)%
          Total interest-bearing deposits8,658,184 8,604,489 8,652,699 8,468,294 8,014,537 0.6 %8.0 %
       Noninterest-bearing4,019,197 3,901,691 3,995,370 3,763,709 3,552,893 3.0 %13.1 %
          Total deposits12,677,381 12,506,180 12,648,069 12,232,003 11,567,430 1.4 %9.6 %
     Federal funds purchased and securities sold
         under agreements to repurchase81,850 255,791 181,387 166,594 247,658 (68.0)%(67.0)%
     FHLB short-term borrowings107,000 217,000 0 0 0 (50.7)%100.0 %
          Total short-term borrowings188,850 472,791 181,387 166,594 247,658 (60.1)%(23.7)%
     Long-term debt313,230 313,039 583,722 776,202 1,341,164 0.1 %(76.6)%
          Total borrowed funds502,080 785,830 765,109 942,796 1,588,822 (36.1)%(68.4)%
     Accrued interest and other liabilities540,962 476,402 502,951 516,265 521,580 13.6 %3.7 %
       Total Liabilities13,720,423 13,768,412 13,916,129 13,691,064 13,677,832 (0.3)%0.3 %
SHAREHOLDERS' EQUITY
     Common stock1,637,065 1,635,470 1,633,137 1,638,947 1,637,489 0.1 %0.0 %
     Retained earnings812,082 773,857 745,220 720,429 694,484 4.9 %16.9 %
     Accumulated other comprehensive income (loss)14,230 30,735 18,101 48,664 42,266 (53.7)%(66.3)%
     Treasury stock, at cost(227,207)(170,555)(137,516)(125,970)(126,424)33.2 %79.7 %
       Total Shareholders' Equity2,236,170 2,269,507 2,258,942 2,282,070 2,247,815 (1.5)%(0.5)%
       Total Liabilities and Shareholders' Equity$15,956,593 $16,037,919 $16,175,071 $15,973,134 $15,925,647 (0.5)%0.2 %

6

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly AveragesYear-to-Date Averages
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,Sep. 30,
2021202120212020202020212020
ASSETS
     Cash and due from banks$245,212 $237,964 $232,275 $228,427 $233,216 $238,531 $251,147 
     Interest-bearing deposits with other banks32,400 45,593 46,912 143,884 40,277 41,582 57,138 
     Investment securities4,189,253 4,130,207 3,782,993 3,403,839 3,162,832 4,035,639 3,147,655 
     Loans held for sale28,365 28,348 29,689 42,402 45,186 28,796 31,700 
     Loans and leases
       Commercial and industrial2,634,306 2,953,185 3,029,716 3,182,749 3,299,259 2,870,954 2,937,601 
       Lease financing67,159 66,124 70,508 74,107 78,500 67,918 81,821 
       Construction real estate567,091 630,351 647,655 608,401 536,870 614,737 511,343 
       Commercial real estate4,413,003 4,372,679 4,339,349 4,313,408 4,364,708 4,375,280 4,318,735 
       Residential real estate937,969 940,600 980,718 1,022,701 1,041,250 952,939 1,049,869 
       Home equity710,794 707,409 726,134 752,425 759,994 714,723 768,469 
       Installment93,937 84,768 81,377 83,509 82,016 86,740 80,760 
       Credit card50,126 48,501 46,709 48,179 45,609 48,458 46,735 
          Total loans9,474,385 9,803,617 9,922,166 10,085,479 10,208,206 9,731,749 9,795,333 
       Less:
          Allowance for credit losses (157,727)(169,979)(177,863)(172,201)(165,270)(168,449)(147,349)
                Net loans 9,316,658 9,633,638 9,744,303 9,913,278 10,042,936 9,563,300 9,647,984 
     Premises and equipment193,775 200,558 206,628 208,800 211,454 200,273 213,626 
     Goodwill 937,771 937,771 937,771 937,771 937,771 937,771 937,771 
     Other intangibles58,314 60,929 63,529 66,195 69,169 60,905 72,079 
     Accrued interest and other assets994,060 940,461 998,554 1,086,390 1,099,169 977,675 1,001,542 
       Total Assets$15,995,808 $16,215,469 $16,042,654 $16,030,986 $15,842,010 $16,084,472 $15,360,642 
LIABILITIES
     Deposits
       Interest-bearing demand$2,960,388 $2,973,930 $2,948,682 $2,812,748 $2,668,635 $2,961,043 $2,563,633 
       Savings4,150,610 4,096,077 3,815,314 3,547,179 3,342,514 4,021,895 3,164,753 
       Time1,574,951 1,637,546 1,767,826 1,844,379 2,015,933 1,659,401 2,276,064 
          Total interest-bearing deposits8,685,949 8,707,553 8,531,822 8,204,306 8,027,082 8,642,339 8,004,450 
       Noninterest-bearing3,981,404 4,003,626 3,840,046 3,720,417 3,535,432 3,942,210 3,172,841 
          Total deposits12,667,353 12,711,179 12,371,868 11,924,723 11,562,514 12,584,549 11,177,291 
     Federal funds purchased and securities sold
          under agreements to repurchase186,401 194,478 184,483 136,795 150,088 188,461 153,146 
     FHLB short-term borrowings63,463 40,846 67,222 7,937 30,868 57,163 587,566 
          Total short-term borrowings249,864 235,324 251,705 144,732 180,956 245,624 740,712 
     Long-term debt313,100 513,790 634,674 1,162,729 1,338,792 486,010 768,770 
       Total borrowed funds562,964 749,114 886,379 1,307,461 1,519,748 731,634 1,509,482 
     Accrued interest and other liabilities504,198 491,489 511,658 542,740 529,326 502,421 465,116 
       Total Liabilities13,734,515 13,951,782 13,769,905 13,774,924 13,611,588 13,818,604 13,151,889 
SHAREHOLDERS' EQUITY
     Common stock1,635,833 1,633,950 1,636,884 1,638,032 1,636,107 1,635,552 1,636,453 
     Retained earnings783,760 754,456 726,351 703,257 679,980 755,066 666,184 
     Accumulated other comprehensive loss36,917 25,832 42,253 40,960 40,697 34,981 30,632 
     Treasury stock, at cost(195,217)(150,551)(132,739)(126,187)(126,362)(159,731)(124,516)
       Total Shareholders' Equity2,261,293 2,263,687 2,272,749 2,256,062 2,230,422 2,265,868 2,208,753 
       Total Liabilities and Shareholders' Equity$15,995,808 $16,215,469 $16,042,654 $16,030,986 $15,842,010 $16,084,472 $15,360,642 

7

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 Quarterly AveragesYear-to-Date Averages
September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
BalanceYieldBalanceYieldBalanceYieldBalanceYieldBalanceYield
Earning assets
    Investments:
      Investment securities$4,189,253 2.31 %$4,130,207 2.37 %$3,162,832 2.86 %$4,035,639 2.40 %$3,147,655 2.96 %
      Interest-bearing deposits with other banks32,400 0.28 %45,593 0.22 %40,277 0.31 %41,582 0.24 %57,138 0.51 %
    Gross loans (1)
9,502,750 4.03 %9,831,965 3.98 %10,253,392 4.00 %9,760,545 4.01 %9,827,033 4.42 %
       Total earning assets13,724,403 3.49 %14,007,765 3.49 %13,456,501 3.72 %13,837,766 3.53 %13,031,826 4.05 %
Nonearning assets
    Allowance for credit losses(157,727)(169,979)(165,270)(168,449)(147,349)
    Cash and due from banks245,212 237,964 233,216 238,531 251,147 
    Accrued interest and other assets2,183,920 2,139,719 2,317,563 2,176,624 2,225,018 
       Total assets$15,995,808 $16,215,469 $15,842,010 $16,084,472 $15,360,642 
Interest-bearing liabilities
    Deposits:
      Interest-bearing demand$2,960,388 0.06 %$2,973,930 0.07 %$2,668,635 0.08 %$2,961,043 0.07 %$2,563,633 0.21 %
      Savings4,150,610 0.09 %4,096,077 0.11 %3,342,514 0.14 %4,021,895 0.11 %3,164,753 0.25 %
      Time1,574,951 0.49 %1,637,546 0.51 %2,015,933 1.20 %1,659,401 0.54 %2,276,064 1.54 %
    Total interest-bearing deposits8,685,949 0.15 %8,707,553 0.17 %8,027,082 0.39 %8,642,339 0.18 %8,004,450 0.60 %
    Borrowed funds
      Short-term borrowings249,864 0.11 %235,324 0.09 %180,956 0.11 %245,624 0.10 %740,712 1.16 %
      Long-term debt313,100 5.10 %513,790 3.23 %1,338,792 1.76 %486,010 3.44 %768,770 2.52 %
        Total borrowed funds562,964 2.88 %749,114 2.25 %1,519,748 1.57 %731,634 2.32 %1,509,482 1.85 %
       Total interest-bearing liabilities9,248,913 0.32 %9,456,667 0.33 %9,546,830 0.58 %9,373,973 0.34 %9,513,932 0.80 %
Noninterest-bearing liabilities
    Noninterest-bearing demand deposits3,981,404 4,003,626 3,535,432 3,942,210 3,172,841 
    Other liabilities504,198 491,489 529,326 502,421 465,116 
    Shareholders' equity2,261,293 2,263,687 2,230,422 2,265,868 2,208,753 
       Total liabilities & shareholders' equity$15,995,808 $16,215,469 $15,842,010 $16,084,472 $15,360,642 
Net interest income $113,410 $114,026 $112,180 $341,312 $338,038 
Net interest spread 3.17 %3.16 %3.14 %3.19 %3.25 %
Net interest margin 3.28 %3.27 %3.32 %3.30 %3.46 %
Tax equivalent adjustment0.04 %0.04 %0.04 %0.04 %0.06 %
Net interest margin (fully tax equivalent)3.32 %3.31 %3.36 %3.34 %3.52 %
(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$(630)$605 $(25)$(4,391)$5,971 $1,580 $(13,309)$15,934 $2,625 
    Interest-bearing deposits with other banks7 (9)(2)(2)(6)(8)(116)(28)(144)
    Gross loans (2)
1,190 (2,256)(1,066)796 (7,617)(6,821)(30,076)(1,995)(32,071)
       Total earning assets567 (1,660)(1,093)(3,597)(1,652)(5,249)(43,501)13,911 (29,590)
Interest-bearing liabilities
    Total interest-bearing deposits$(401)$28 $(373)$(4,818)$252 $(4,566)$(25,493)$837 $(24,656)
    Borrowed funds
    Short-term borrowings10 5 15 (2)19 17 (5,845)(379)(6,224)
    Long-term debt2,388 (2,507)(119)11,249 (13,179)(1,930)5,287 (7,271)(1,984)
       Total borrowed funds2,398 (2,502)(104)11,247 (13,160)(1,913)(558)(7,650)(8,208)
       Total interest-bearing liabilities1,997 (2,474)(477)6,429 (12,908)(6,479)(26,051)(6,813)(32,864)
          Net interest income (1)
$(1,430)$814 $(616)$(10,026)$11,256 $1,230 $(17,450)$20,724 $3,274 
(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)
Nine months ended
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,Sep. 30,Sep. 30,
2021202120212020202020212020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period$159,590 $169,923 $175,679 $168,544 $158,661 $175,679 $57,650 
 Day one adoption impact of ASC 3260 0 0 0 0 0 61,505 
  Provision for credit losses(8,193)(4,756)3,450 13,758 15,299 (9,499)57,038 
  Gross charge-offs
    Commercial and industrial2,617 3,729 7,910 1,505 1,467 14,256 3,840 
    Lease financing0 0 0 0 852 0 852 
    Construction real estate0 0 2 0 0 2 0 
    Commercial real estate1,030 2,041 1,250 6,270 3,789 4,321 5,830 
    Residential real estate74 46 1 203 22 121 285 
    Home equity200 240 611 386 460 1,051 1,155 
    Installment37 77 36 21 59 150 127 
    Credit card230 179 222 169 171 631 716 
      Total gross charge-offs 4,188 6,312 10,032 8,554 6,820 20,532 12,805 
  Recoveries
    Commercial and industrial869 205 337 367 265 1,411 2,540 
    Lease financing0 0 0 (6)6 0 6 
    Construction real estate0 3 0 3 0 3 14 
    Commercial real estate223 75 195 844 760 493 1,418 
    Residential real estate56 54 44 145 91 154 236 
    Home equity426 317 177 428 209 920 704 
    Installment53 37 34 65 35 124 93 
    Credit card67 44 39 85 38 150 145 
      Total recoveries1,694 735 826 1,931 1,404 3,255 5,156 
  Total net charge-offs2,494 5,577 9,206 6,623 5,416 17,277 7,649 
Ending allowance for credit losses$148,903 $159,590 $169,923 $175,679 $168,544 $148,903 $168,544 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
  Commercial and industrial0.26 %0.48 %1.01 %0.14 %0.14 %0.60 %0.06 %
  Lease financing0.00 %0.00 %0.00 %0.03 %4.29 %0.00 %1.38 %
  Construction real estate0.00 %0.00 %0.00 %0.00 %0.00 %0.00 %0.00 %
  Commercial real estate0.07 %0.18 %0.10 %0.50 %0.28 %0.12 %0.14 %
  Residential real estate0.01 %0.00 %(0.02)%0.02 %(0.03)%0.00 %0.01 %
  Home equity(0.13)%(0.04)%0.24 %(0.02)%0.13 %0.02 %0.08 %
  Installment(0.07)%0.19 %0.01 %(0.21)%0.12 %0.04 %0.06 %
  Credit card1.29 %1.12 %1.59 %0.69 %1.16 %1.33 %1.63 %
     Total net charge-offs0.10 %0.23 %0.38 %0.26 %0.21 %0.24 %0.10 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
  Nonaccrual loans (1)
    Commercial and industrial$15,160 $27,426 $24,941 $29,230 $34,686 $15,160 $34,686 
    Lease financing0 16 0 0 1,092 0 1,092 
    Construction real estate0 0 0 0 0 0 0 
    Commercial real estate38,564 45,957 44,514 34,682 24,521 38,564 24,521 
    Residential real estate9,416 9,480 11,359 11,601 12,104 9,416 12,104 
    Home equity2,735 3,376 4,286 5,076 5,374 2,735 5,374 
    Installment91 115 146 163 153 91 153 
      Nonaccrual loans65,966 86,370 85,246 80,752 77,930 65,966 77,930 
  Accruing troubled debt restructurings (TDRs)11,448 12,070 11,608 7,099 7,759 11,448 7,759 
     Total nonperforming loans77,414 98,440 96,854 87,851 85,689 77,414 85,689 
  Other real estate owned (OREO)340 340 854 1,287 1,643 340 1,643 
     Total nonperforming assets77,754 98,780 97,708 89,138 87,332 77,754 87,332 
  Accruing loans past due 90 days or more104 155 92 169 79 104 79 
     Total underperforming assets$77,858 $98,935 $97,800 $89,307 $87,411 $77,858 $87,411 
Total classified assets$165,462 $182,516 $196,782 $142,021 $134,002 $165,462 $134,002 
CREDIT QUALITY RATIOS
Allowance for credit losses to
     Nonaccrual loans225.73 %184.77 %199.33 %217.55 %216.28 %225.73 %216.28 %
     Nonperforming loans192.35 %162.12 %175.44 %199.97 %196.69 %192.35 %196.69 %
     Total ending loans1.59 %1.68 %1.71 %1.77 %1.65 %1.59 %1.65 %
Nonperforming loans to total loans0.83 %1.03 %0.97 %0.89 %0.84 %0.83 %0.84 %
Nonperforming assets to
     Ending loans, plus OREO0.83 %1.04 %0.98 %0.90 %0.86 %0.83 %0.86 %
     Total assets0.49 %0.62 %0.60 %0.56 %0.55 %0.49 %0.55 %
Nonperforming assets, excluding accruing TDRs to
     Ending loans, plus OREO0.71 %0.91 %0.87 %0.83 %0.78 %0.71 %0.78 %
     Total assets0.42 %0.54 %0.53 %0.51 %0.50 %0.42 %0.50 %
Classified assets to total assets1.04 %1.14 %1.22 %0.89 %0.84 %1.04 %0.84 %
(1) Nonaccrual loans include nonaccrual TDRs of $20.3 million, $21.5 million, $20.9 million, $14.7 million, and $29.3 million, as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Nine months ended,
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,Sep. 30,Sep. 30,
2021202120212020202020212020
PER COMMON SHARE
Market Price
  High$24.06 $26.02 $26.40 $17.77 $15.15 $26.40 $25.52 
  Low$21.48 $23.35 $17.62 $12.07 $11.40 $17.62 $11.40 
  Close$23.41 $23.63 $24.00 $17.53 $12.01 $23.41 $12.01 
Average shares outstanding - basic94,289,097 96,123,645 96,873,940 97,253,787 97,247,080 95,752,759 97,400,942 
Average shares outstanding - diluted95,143,930 97,009,712 97,727,527 98,020,534 98,008,733 96,617,600 98,117,463 
Ending shares outstanding93,742,797 96,199,509 97,517,693 98,021,929 97,999,763 93,742,797 97,999,763 
Total shareholders' equity$2,236,170 $2,269,507 $2,258,942 $2,282,070 $2,247,815 $2,236,170 $2,247,815 
REGULATORY CAPITALPreliminaryPreliminary
Common equity tier 1 capital$1,316,059 $1,333,209 $1,334,882 $1,325,922 $1,293,716 $1,316,059 $1,293,716 
Common equity tier 1 capital ratio11.54 %11.78 %11.81 %11.82 %11.63 %11.54 %11.63 %
Tier 1 capital$1,359,297 $1,376,333 $1,377,892 $1,368,818 $1,336,497 $1,359,297 $1,336,497 
Tier 1 ratio11.92 %12.16 %12.19 %12.20 %12.02 %11.92 %12.02 %
Total capital$1,706,513 $1,732,930 $1,741,755 $1,744,802 $1,708,817 $1,706,513 $1,708,817 
Total capital ratio14.97 %15.31 %15.41 %15.55 %15.37 %14.97 %15.37 %
Total capital in excess of minimum requirement$509,536 $544,478 $554,834 $566,795 $541,263 $509,536 $541,263 
Total risk-weighted assets$11,399,782 $11,318,590 $11,304,012 $11,219,114 $11,119,560 $11,399,782 $11,119,560 
Leverage ratio9.05 %9.14 %9.34 %9.55 %9.55 %9.05 %9.55 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets14.01 %14.15 %13.97 %14.29 %14.11 %14.01 %14.11 %
Ending tangible shareholders' equity to ending tangible assets (1)
8.21 %8.37 %8.22 %8.47 %8.25 %8.21 %8.25 %
Average shareholders' equity to average assets14.14 %13.96 %14.17 %14.07 %14.08 %14.09 %14.38 %
Average tangible shareholders' equity to average tangible assets (1)
8.35 %8.23 %8.38 %8.26 %8.18 %8.32 %8.29 %
REPURCHASE PROGRAM (2)
Shares repurchased2,484,295 1,308,945 840,115 0 0 4,633,355 880,000 
Average share repurchase price$23.04 $25.11 $21.40 N/AN/A$23.33 $18.96 
Total cost of shares repurchased$57,231 $32,864 $17,982 N/AN/A$108,077 $16,686 
(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 Third Quarter 2021 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 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 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, 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.

 
3Q 2021 Results 124th Consecutive Quarter of Profitability 4 EOP assets decreased $81.3 million compared to the linked quarter to $16.0 billion EOP loans decreased $150.6 million compared to the linked quarter to $9.4 billion Average deposits decreased $43.8 million compared to the linked quarter to $12.7 billion EOP investment securities increased $118.1 million compared to the linked quarter Balance Sheet Profitability Asset Quality Income Statement Capital Noninterest income - $42.5 million Noninterest expense - $99.1 million; $93.6 million as adjusted Efficiency ratio - 63.52%. Adjusted1 efficiency ratio – 60.11% Effective tax rate of 10.5%. Adjusted1 effective tax rate of 17.0% Net interest income - $113.4 million. Net interest margin of 3.28% on a GAAP basis; 3.32% on a fully tax equivalent basis1 Net income - $60.0 million or $0.63 per diluted share. Adjusted1 net income - $59.9 million or $0.63 per diluted share Return on average assets - 1.49%. Adjusted1 return on average assets - 1.49% Return on average shareholders’ equity – 10.53%. Adjusted1 return on average shareholders’ equity – 10.51% Return on average tangible common equity - 19.03%1. Adjusted1 return on average tangible common equity - 19.00% Provision recapture - $10.1 million. Net charge-offs - $2.5 million. NCOs / Avg. Loans - 0.10% annualized Nonperforming Loans / Total Loans - 0.83%. Nonperforming Assets / Total Assets - 0.49% ACL / Nonaccrual Loans - 225.73%. Classified Assets / Total Assets - 1.04% ACL / Total loans - 1.59%; 1.62% of loans excluding PPP Total capital ratio – 14.97% Tier 1 common equity ratio - 11.54% Tangible common equity ratio - 8.21%; 8.31% excluding PPP loans Tangible book value per share - $13.09 Repurchased 2,484,295 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. 1

 
3Q 2021 Highlights Quarterly earnings driven by strong fee income and lower credit costs Adjusted1 earnings per share - $0.63 Adjusted1 return on assets - 1.49% Adjusted1 pre-tax, pre-provision return on assets - 1.54% Adjusted1 return on average tangible common equity - 19.00% Loan balances declined primarily due to PPP payoffs/forgiveness; Core loan balances increased $74.8 million; Average deposit balances decreased $43.8 million Loan balances decreased $150.6 million compared to the linked quarter; PPP loan balances decreased $225.4 million Non-PPP C&I loan balances increased 16.0% on an annualized basis Average transactional deposit balances grew $18.8 million compared to the linked quarter Average noninterest bearing deposits were 31.4% of total deposits Net interest margin (FTE) in line with expectations 1 bp increase from second quarter driven primarily by PPP forgiveness fees Net interest margin, excluding loan fees and loan accretion, decreased 2 bp compared to the linked quarter Strong adjusted1 noninterest income of $42.2 million Mortgage banking revenue of $8.6 million, an increase of $0.1 million, or 1.1%, compared to the linked quarter due to higher premiums Foreign exchange income of $9.2 million, a decrease of $2.8 million, or 23.6%, compared to the linked quarter Wealth management fees of $5.9 million, a decrease of $0.3 million, or 5.1%, compared to the linked quarter Client derivative income of $2.3 million, an increase of $0.5 million, or 26.6%, compared to the linked quarter Other noninterest income of $4.4 million, an increase of $1.1 million, or 34.3%, compared to the linked quarter Core expenses increased $1.8 million from the linked quarter, driven by increase in incentive compensation tied to overall Company performance, marketing expenses and professional services Adjusted1 noninterest expense of $93.6 million; Adjusted1 for $0.7 million in severance, $5.3 million of tax credit investment write-downs, and $0.7 million for gains on sale of fixed assets Efficiency ratio of 63.5%; 60.1% as adjusted1 Allowance for credit loss (ACL) and provision expense declined compared to linked quarter Loans and leases - ACL of $148.9 million; 1.59% of total loans, 1.62% excluding PPP; $8.2 million provision recapture Unfunded Commitments - ACL of $11.6 million; $2.0 million provision recapture Lower provision expense driven by improved credit outlook, as well as lower net charge-offs and classified asset balances Effective tax rate of 10.5% positively impacted by tax credit investment; 17.0% as adjusted1 Strong capital ratios Total capital of 14.97%; Tier 1 common equity of 11.54%; Tangible common equity of 8.21% Tangible book value increased by $0.01 to $13.09 Tangible common equity of 8.31% excluding PPP 2,484,295 shares repurchased in third quarter at an average price of $23.04 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 1 As Reported Adjusted 1 Net interest income 113,410$ 113,410$ 114,026$ 114,026$ Provision for credit losses-loans and leases (8,193)$ (8,193)$ (4,756)$ (4,756)$ Provision for credit losses-unfunded commitments (1,951)$ (1,951)$ 517$ 517$ Noninterest income 42,537$ 42,537$ 42,987$ 42,987$ less: gains (losses) on investment securities - (205) A - (104) A less: other - 500 A - - Total noninterest income 42,537$ 42,242$ 42,987$ 43,091$ Noninterest expense 99,058$ 99,058$ 99,643$ 99,643$ less: severance and merger-related expenses - 702 A - 98 A less: tax credit investment - 5,309 A - 1,156 A less: legal settlement - - A - 3,825 A less: other - (521) A - 2,772 A Total noninterest expense 99,058$ 93,568$ 99,643$ 91,792$ Income before income taxes 67,033$ 72,228$ 61,609$ 69,564$ Income tax expense 7,021$ 7,021$ 10,721$ 10,721$ plus: after-tax impact of tax credit investment @ 21% - 4,194 - 913 plus: tax effect of adjustments (A) @ 21% statutory rate - 1,091 - 1,671 Total income tax expense 7,021$ 12,306$ 10,721$ 13,305$ Net income 60,012$ 59,922$ 50,888$ 56,259$ Net earnings per share - diluted 0.63$ 0.63$ 0.52$ 0.58$ Pre-tax, pre-provision return on average assets 1.41% 1.54% 1.42% 1.62% 3Q 2021 2Q 2021

 
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 $0.63 $0.52$0.48$0.49 $0.42 $0.63  $0.58  $0.50 $0.51  $0.44  3Q212Q211Q214Q203Q20 Diluted EPS Adjusted EPS1 1.49% 1.26%1.20%1.20%1.04% 1.49% 1.39% 1.24%1.23% 1.09% 3Q212Q211Q214Q203Q20 ROA Adjusted ROA 1 19.03% 16.31%15.24%15.50%13.61% 19.00% 18.03% 15.80%15.94% 14.18% 3Q212Q211Q214Q203Q20 ROATCE Adjusted ROATCE 1 60.3% 63.8% 60.0% 63.5% 63.5% 58.9% 56.8% 58.4% 58.4% 60.1% 3Q20 4Q20 1Q21 2Q21 3Q21 Efficiency Ratio Adjusted Efficiency Ratio1

 
Net Interest Income & Margin 8 Net Interest Margin (FTE) 3Q21 NIM (FTE) Progression Net Interest Income All dollars shown in millions 2Q21 3.31% PPP and other loan fees 0.04% Asset yields/mix -0.02% Deposit/funding costs/mix 0.01% Day count -0.02% 3Q21 3.32% 2.87%2.89%2.96%2.91%2.97% 0.11%0.10%0.09%0.15%0.11% 0.09%0.10%0.10%0.12%0.16% 0.25%0.22% 0.25%0.31%0.12% 3.32%3.31% 3.40% 3.49% 3.36% 3Q212Q211Q214Q203Q20 Basic Margin (FTE) Loan Fees Loan Accretion PPP Fees $3.9$3.4$3.2$5.5$3.8 $3.0$3.5$3.4$3.9$5.4 $9.3$9.2$10.0 $12.5 $6.2 $113.4$114.0$113.9 $118.5 $112.2 3Q212Q211Q214Q203Q20 Loan Fees Loan Accretion PPP Interest/Fees

 
Average Balance Sheet 9 Average Loans Average Securities Average Deposits All dollars shown in millions 1 Includes loans fees and loan accretion $9,503$9,832$9,952$10,128$10,253 4.03%3.98% 4.03% 4.18% 4.00% 3Q212Q211Q214Q203Q20 Gross Loans Loan Yield (Gross)1 $12,667$12,711$12,372$11,925$11,563 0.10%0.12%0.14%0.20%0.27% 3Q212Q211Q214Q203Q20 Total Deposits Cost of Deposits $4,189$4,130$3,783$3,404$3,163 2.31%2.37%2.54%2.71%2.86% 3Q212Q211Q214Q203Q20 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 $7.8 million All dollars shown in millions Total growth/(decline):    ($150.6 million) ‐$3.6 $96.9 $7.6 ‐$9.4 $12.7 ‐$29.4 ‐$225.4 ICRE Commercial & Small Business Banking Consumer Mortgage Oak Street Franchise PPP ICRE $3,955  42% Commercial &  Small Business  Banking $2,499  27% Consumer $827  9% Mortgage $989  10% Oak Street $557  6% Franchise $358  4% PPP $176  2% Total $9.4 Billion 1

 
Loan Concentrations 11 C&I Loans by Industry CRE Loans by Collateral 1 Industry types included in Other representing greater than 1% of total C&I loans include Public Administration, Other Services, Agriculture, Arts & Recreation, and Waste Management. Includes owner-occupied CRE. 2 Collateral types included in Other representing greater than 1% of total CRE loans include Manufacturing Facility, Residential 1-4 Family, Farmland, Real Estate IUB Other, Residential Multi-Family 5+ Construction, Church, and Student Housing. Finance &  Insurance 22% Real Estate 14% Manufacturing 13% Accommodation  & Food Services 11% Wholesale Trade 6% Construction 6% Health Care 6% Professional &  Tech 5% Transportation &  Warehousing 3% Retail Trade 3% Other 11% C&I Loans: $2.8B 1 Residential, Multi  Family 5+ 19% Office 18% Retail 13% Hotel/Motel 10% Nursing/Assisted  Living 5% Warehouse 4% Industrial Facility 4% Restaurant 4% Medical Office 3% Other 20% CRE Loans: $4.7B 2

 
Deposits 12 Deposit Product Mix (Avg) 3Q21 Average Deposit Progression All dollars shown in millions Total growth/(decline):    ($43.8) million Interest‐bearing  demand $1,782  14% Noninterest‐ bearing $3,766  30% Savings $1,269  10% Money Markets $2,322  18% Retail CDs $1,002  8% Brokered CDs $499  4% Public Funds $2,027  16% Total $12.7 billion                                     ‐$7.6 ‐$23.7 $18.3 $27.6 ‐$18.0 ‐$41.5 $1.1 Interest‐bearing demand Noninterest‐bearing Savings Money Markets Retail CDs Brokered CDs Public Funds

 
Noninterest Income 13 Noninterest Income 3Q21 Highlights All dollars shown in thousands Total fee income 27.3% of net revenue Mortgage banking income of $8.6 million; increased $0.1 million, or 1.1%, from the linked quarter Foreign exchange income of $9.2 million; decreased $2.8 million, or 23.6%, from record second quarter Trust and wealth management fees of $5.9 million; seasonal decrease of $0.3 million, or 5.1%, from record second quarter Deposit service charge income of $8.6 million; increased $1.0 million, or 13.4%, from the linked quarter Client derivative income of $2.3 million; increased $0.5 million, or 26.6%, from the linked quarter Other noninterest income of $4.4 million; increased $1.1 million, or 34.3%, from the linked quarter Driven by investments in limited partnerships and insurance proceeds Service Charges $8,548  20% Wealth Mgmt $5,896  14% Bankcard income $3,838  9% Client derivative fees $2,273  5% Foreign exchange  income $9,191  22% Mortgage  origination  income $8,586  20% Other  $4,205  10% Total $42.5 million

 
Noninterest Expense 14 Noninterest Expense 3Q21 Highlights All dollars shown in thousands Core expenses increased $1.8 million from the linked quarter, driven by incentive compensation tied to overall Company performance, marketing costs and professional services Operating adjustments include: $5.3 million tax credit investment write-down $0.7 million of gains on sales of fixed assets $0.7 million of severance Salaries and  benefits $61,717  62% Occupancy and  equipment $8,889  9% Data processing $7,951  8% Professional  services $2,199  2% Intangible  amortization $2,479  3% Other $15,823  16% Total $99.1 million

 
Current Expected Credit Losses - Loans and Leases 15 ACL / Total Loans 3Q21 Highlights All dollars shown in thousands $148.9 million ACL – loans and leases, or 1.59% of loan balances; 1.62% excluding PPP $8.2 million provision recapture; decline driven by improved credit outlook, lower net charge-offs and classified asset balances Utilized September Moody’s baseline forecast in quantitative model $11.6 million ACL – unfunded commitments; $2.0 million provision recapture for this portion of the ACL ACL by Loan Type All dollars shown in millions $148.9$159.6$169.9$175.7$168.5 1.59% 1.68%1.71% 1.77% 1.65% 3Q212Q211Q214Q203Q20 Allowance for Credit Losses ACL / Total Loans 3Q20 4Q20 1Q21 2Q21 3Q21 Loans Commercial and industrial 50,516$     51,454$     45,139$     46,797$     43,534$     Lease financing 1,287           995                1,015           1,457           1,083           Real estate ‐construction 18,970        21,736        22,734        20,359        15,390        Real estate ‐ commercial 72,207        76,795        78,669        70,305        68,594        Real estate ‐ residential 9,286           8,560           7,748           6,879           6,480           Home equity 12,530        11,869        10,760        9,684           9,538           Installment  1,237           1,215           1,235           1,211           1,177           Credit card 2,511           3,055           2,623           2,898           3,107           ACL‐loan and lease losses  168,544$  175,679$  169,923$  159,590$  148,903$      ACL‐unfunded commitments  14,753$     12,503$     13,040$     13,558$     11,607$    

 
Asset Quality 16 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 $5.4 $6.6 $9.2 $5.6 $2.5 $13.4 $11.5 $4.0 ‐$4.2 ‐$10.1 0.10% 0.23% 0.38% 0.26% 0.21% 3Q20 4Q20 1Q21 2Q21 3Q21 NCOs Provision Expense NCOs / Average Loans $165.5 $182.5 $196.8 $142.0$134.0 1.04% 1.14%1.22% 0.89%0.84% 3Q212Q211Q214Q203Q20 Classified Assets Classified Assets / Total Assets $77.8 $98.8$97.7 $89.1$87.3 0.49% 0.62%0.60%0.56%0.55% 3Q212Q211Q214Q203Q20 NPAs NPAs / Total Assets

 
CARES Act Modifications as of 9/30/21 $101 million of total active modifications; 1% of total loans 100% of loan modifications making interest only payments $67 million, or 66%, of total deferrals are hotel loans All deferrals expected to expire by end of year No material credit issues among loans that have exited deferral 17 All dollars shown in millions Active deferrals by round Active modifications by category Round 3 $101.2  100% Hotel $67  66% Franchise $34  34%

 
Capital 18 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 9/30 Risk Weighted Assets = $11,399,782 All capital numbers are considered preliminary. Tier 1 Capital Ratio 8.21%8.37%8.22% 8.47% 8.25% 3Q212Q211Q214Q203Q20 Tangible Common Equity Ratio 11.54%11.78%11.81%11.82%11.63% 7.00% 3Q212Q211Q214Q203Q20 Tier 1 Common Equity Ratio Basel III minimum 11.92%12.16%12.19%12.20%12.02% 8.50% 3Q212Q211Q214Q203Q20 Tier 1 Capital Ratio Basel III minimum 14.97%15.31%15.41%15.55%15.37% 10.50% 3Q212Q211Q214Q203Q20 Total Capital Ratio Basel III minimum

 
Capital Strategy 19 Strategy & DeploymentTangible Book Value Per Share 3.9% annualized dividend yield 2,484,295 shares repurchased in 3Q21 at an average price of $23.04 131.7% of 3Q21 earnings returned to shareholders through common dividend and share repurchases Most recent internal stress testing indicates capital ratios above regulatory minimums in all modeled scenarios Common dividend expected to remain unchanged in near-term 366,645 shares remaining in current authorization to repurchase $13.09 $13.08  $12.78  $12.93  $12.56  3Q212Q211Q214Q203Q20 Tangible Book Value per Share

 
Outlook Commentary1 Loan balances expected to grow low to mid-single digits, excluding impact of PPP, over the remainder of the year Securities balances expected to remain consistent with 9/30/21 balances Modest seasonal increase in deposit balances expected in the near-term 20 Expected to be $91-93 million, but will fluctuate with fee incomeNoninterest Expense Net Interest Margin Balance Sheet Credit Continued improvement expected in credit quality trends Provision recapture expected in the near term Allowance for credit losses expected to decline Noninterest Income Modest seasonal decline expected in mortgage banking income Foreign exchange income expected to be $10-12 million Total fee income expected to be $40-42 million 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; minimal PPP expected in 1Q22 Expected to be under modest pressure from the low interest rate environment and excess liquidity on the balance sheet Capital Will continue to evaluate capital deployment opportunities 366,645 in remaining shares under the 2021 repurchase plan expected to be repurchased in 4Q21

 
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 21 Appendix: Non-GAAP Measures

 
Appendix: Non-GAAP to GAAP Reconciliation 22 All dollars shown in thousands Net interest income and net interest margin - fully tax equivalent Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, 2021 2021 2021 2020 2020 Net interest income 113,410$ 114,026$ 113,876$ 118,473$ 112,180$ Tax equivalent adjustment 1,434 1,619 1,652 1,613 1,628 Net interest income - tax equivalent 114,844$ 115,645$ 115,528$ 120,086$ 113,808$ Average earning assets 13,724,403$ 14,007,765$ 13,781,760$ 13,675,604$ 13,456,501$ Net interest margin1 3.28 % 3.27 % 3.35 % 3.45 % 3.32 % Net interest margin (fully tax equivalent)1 3.32 % 3.31 % 3.40 % 3.49 % 3.36 % 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 23 All dollars shown in thousands Additional non-GAAP ratios Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, (Dollars in thousands, except per share data) 2021 2021 2021 2020 2020 Net income (a) 60,012$ 50,888$ 47,315$ 48,312$ 41,477$ Average total shareholders' equity 2,261,293 2,263,687 2,272,749 2,256,062 2,230,422 Less: Goodw ill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (58,314) (60,929) (63,529) (66,195) (69,169) MSR's (14,215) (13,310) (12,749) (12,186) (11,274) Average tangible equity (b) 1,250,993 1,251,677 1,258,700 1,239,910 1,212,208 Total shareholders' equity 2,236,170 2,269,507 2,258,942 2,282,070 2,247,815 Less: Goodw ill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (56,811) (59,391) (61,984) (64,552) (67,419) MSR's (14,852) (14,142) (13,156) (12,810) (12,011) Ending tangible equity (c) 1,226,736 1,258,203 1,246,031 1,266,937 1,230,614 Total assets 15,956,593 16,037,919 16,175,071 15,973,134 15,925,647 Less: Goodw ill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (56,811) (59,391) (61,984) (64,552) (67,419) MSR's (14,852) (14,142) (13,156) (12,810) (12,011) Ending tangible assets (d) 14,947,159 15,026,615 15,162,160 14,958,001 14,908,446 Risk-w eighted assets (e) 11,399,782 11,318,590 11,304,012 11,219,114 11,119,560 Total average assets 15,995,808 16,215,469 16,042,654 16,030,986 15,842,010 Less: Goodw ill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (58,314) (60,929) (63,529) (66,195) (69,169) MSR's (14,215) (13,310) (12,749) (12,186) (11,274) Average tangible assets (f) 14,985,508$ 15,203,459$ 15,028,605$ 15,014,834$ 14,823,796$ Ending shares outstanding (g) 93,742,797 96,199,509 97,517,693 98,021,929 97,999,763 Ratios Return on average tangible shareholders' equity (a)/(b) 19.03% 16.31% 15.24% 15.50% 13.61% Ending tangible equity as a percent of: Ending tangible assets (c)/(d) 8.21% 8.37% 8.22% 8.47% 8.25% Risk-w eighted assets (c)/(e) 10.76% 11.12% 11.02% 11.29% 11.07% Average tangible equity as a percent of average tangible assets (b)/(f) 8.35% 8.23% 8.38% 8.26% 8.18% Tangible book value per share (c)/(g) 13.09$ 13.08$ 12.78$ 12.93$ 12.56$ Three months ended

 
Appendix: Non-GAAP to GAAP Reconciliation 24 Additional non-GAAP measures 1Q21 4Q20 3Q20 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 113,410$ 113,410$ 114,026$ 114,026$ 113,876$ 113,876$ 118,473$ 118,473$ 112,180$ 112,180$ Provision for credit losses-loans and leases (j) (8,193) (8,193) (4,756) (4,756) 3,450 3,450 13,758 13,758 15,299 15,299 Provision for credit losses-unfunded commitments (j) (1,951) (1,951) 517 517 538 538 (2,250) (2,250) (1,925) (1,925) Noninterest income 42,537 42,537 42,987 42,987 40,322 40,322 61,515 61,515 49,499 49,499 less: gains (losses) on sale of investment securities (205) (104) (54) 196 20 less: gains from the redemption of Visa B shares - - - 13,397 - less: other 500 - 193 (157) - Total noninterest income (g) 42,537 42,242 42,987 43,091 40,322 40,183 61,515 48,079 49,499 49,479 Noninterest expense 99,058 99,058 99,643 99,643 92,506 92,506 114,798 114,798 97,511 97,511 less: severance and merger-related expenses 702 98 1,261 29 95 less: tax credit investments 5,309 1,156 208 5,071 - less: contribution to First Financial Foundation - - - 5,000 - less: debt extinguishment - - - 7,257 - less: legal settlement - 3,825 - - - less: COVID-19 and other (521) 2,772 1,054 2,877 2,126 Total noninterest expense (e) 99,058 93,568 99,643 91,792 92,506 89,983 114,798 94,564 97,511 95,290 Income before income taxes (i) 67,033 72,228 61,609 69,564 57,704 60,088 53,682 60,480 50,794 52,995 Income tax expense 7,021 7,021 10,721 10,721 10,389 10,389 5,370 5,370 9,317 9,317 plus: tax effect of adjustments 4,194 913 501 1,428 462 plus: after-tax impact of tax credit investments @ 21% 1,091 1,671 164 4,005 Total income tax expense (h) 7,021 12,306 10,721 13,305 10,389 11,054 5,370 10,803 9,317 9,779 Net income (a) 60,012$ 59,922$ 50,888$ 56,259$ 47,315$ 49,034$ 48,312$ 49,677$ 41,477$ 43,216$ Average diluted shares (b) 95,144 95,144 97,010 97,010 97,728 97,728 98,021 98,021 98,009 98,009 Average assets (c) 15,995,808 15,995,808 16,215,469 16,215,469 16,042,654 16,042,654 16,030,986 16,030,986 15,842,010 15,842,010 Average shareholders' equity 2,261,293 2,261,293 2,263,687 2,263,687 2,272,749 2,272,749 2,256,062 2,256,062 2,230,422 2,230,422 Less: Goodw ill and other intangibles (1,010,300) (1,010,300) (1,012,010) (1,012,010) (1,014,049) (1,014,049) (1,016,152) (1,016,152) (1,018,214) (1,018,214) Average tangible equity (d) 1,250,993 1,250,993 1,251,677 1,251,677 1,258,700 1,258,700 1,239,910 1,239,910 1,212,208 1,212,208 Ratios Net earnings per share - diluted (a)/(b) 0.63$ 0.63$ 0.52$ 0.58$ 0.48$ 0.50$ 0.49$ 0.51$ 0.42$ 0.44$ Return on average assets - (a)/(c) 1.49% 1.49% 1.26% 1.39% 1.20% 1.24% 1.20% 1.23% 1.04% 1.09% Pre-tax, pre-provision return on average assets - ((a)+(j)+(h))/(c) 1.41% 1.54% 1.42% 1.62% 1.56% 1.62% 1.62% 1.79% 1.61% 1.67% Return on average tangible shareholders' equity - (a)/(d) 19.03% 19.00% 16.31% 18.03% 15.24% 15.80% 15.50% 15.94% 13.61% 14.18% Efficiency ratio - (e)/((f)+(g)) 63.5% 60.1% 63.5% 58.4% 60.0% 58.4% 63.8% 56.8% 60.3% 58.9% Effective tax rate - (h)/(i) 10.5% 17.0% 17.4% 19.1% 18.0% 18.4% 10.0% 17.9% 18.3% 18.5% (Dollars in thousands, except per share data) 3Q21 2Q21

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