ffbc-20210722
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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): July 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 July 22, 2021, First Financial Bancorp. (the "Company") issued its earnings press release that included its results of operations and financial condition for the first six months and second 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 July 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:July 22, 2021

                    




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

•Earnings per diluted share of $0.52; $0.58 on an adjusted(1) basis
•Return on average assets of 1.26%; 1.39% as adjusted(1)
•Net interest margin FTE(1) of 3.31%
•Provision recapture of $4.2 million
•Repurchased 1,308,945 shares during the quarter

Cincinnati, Ohio - July 22, 2021 First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and six months ended June 30, 2021.

For the three months ended June 30, 2021, the Company reported net income of $50.9 million, or $0.52 per diluted common share. These results compare to net income of $47.3 million, or $0.48 per diluted common share, for the first quarter of 2021 and $37.4 million, or $0.38 per diluted common share, for the second quarter of 2020. For the six months ended June 30, 2021, First Financial had earnings per diluted common share of $1.01 compared to $0.67 for the same period in 2020.

Return on average assets for the second quarter of 2021 was 1.26% while return on average tangible common equity was 16.31%(1). These compare to returns on average assets of 1.20% and 0.96%, and returns on average tangible common equity of 15.24%(1) and 12.90%(1), in the first quarter of 2021 and the second quarter of 2020, respectively.

Second quarter 2021 highlights include:

•After adjustments(1) for certain nonrecurring items:
◦Net income of $0.58 per diluted common share
◦1.39% return on average assets
◦18.03% return on average tangible common equity

•Net interest margin of 3.31% on a fully tax-equivalent basis(1) in line with expectations
◦9 basis point reduction from linked quarter driven by lower yields on earning assets and additional days during the second quarter

•Noninterest income of $43.0 million, or $43.1 million as adjusted(1)
◦Record foreign exchange income of $12.0 million; increased $1.3 million, or 11.9%, compared to linked quarter
◦Record wealth management fees of $6.2 million; increased $0.6 million, or 10.4%, compared to the linked quarter

•Noninterest expenses of $99.6 million, or $91.8 million as adjusted(1)
◦Adjustments(1) include:
▪$3.8 million of legal settlement costs
▪$2.8 million of branch consolidation costs
▪$1.2 million of tax credit investment write-downs
◦Efficiency ratio of 63.5%; 58.4% as adjusted(1)

•Loan balances declined during the quarter driven by $288.8 million of PPP forgiveness and elevated prepayments
__________________________________________________________________________________
(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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•Average transactional deposit balances grew $469.6 million compared to the linked quarter; 17.8% on an annualized basis

•Total Allowance for Credit Losses of $173.1 million; Total quarterly provision recapture of $4.2 million
◦Loans and leases - ACL of $159.6 million, 1.68% of total loans; 1.75% of loans excluding PPP
◦Unfunded Commitments - ACL of $13.6 million
◦Provision recapture driven by improvements in economic conditions and classified asset balances, coupled with lower net charge-offs

•Strong capital ratios
◦Total capital of 15.31%
◦Tier 1 common equity of 11.78%
◦Tangible common equity of 8.37%(1); 8.61%(1) excluding PPP loans
◦Tangible book value per share of $13.08(1); $0.30 increase compared to linked quarter
◦Repurchased 1,308,945 shares during second quarter; 2,149,060 shares repurchased in 2021

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

Mr. Brown continued, “Our core quarterly financial metrics reflected the strong quarter with an adjusted(1) earnings per share of $0.58, adjusted(1) return on assets of 1.39%, and an adjusted(1) efficiency ratio of 58.4%. The quarterly performance was bolstered by higher fee revenue in interchange, and record revenue in Wealth Management and Bannockburn. Additionally, provision recapture during the period positively impacted our results, driven by improved credit quality trends, which included declines in net charge-offs and classified asset balances. We are optimistic about the economic environment and expect further reductions in credit costs in the coming periods.”

Mr. Brown added, “We were pleased with a 23% increase in loan originations for the quarter, driven primarily by our core commercial markets, in addition to consumer and mortgage banking. Loan payoffs accelerated during the quarter in almost all commercial banking areas, with larger payoff amounts in Commercial Finance and ICRE driving an overall reduction in core loan balances for the quarter. Given the state of our loan pipeline, we expect originations to remain strong in the second half of the year, however we also anticipate higher payoffs to continue due to the amount of liquidity in the market. Average transactional deposits increased 18% on an annualized basis, as clients continued to build liquidity from recent government stimulus actions, however we believe these balances may have peaked as we began to experience some outflows late in the quarter. Our capital ratios remained strong and in excess of both internal and external targets. We also remained active in our share buyback program, repurchasing over 1 million shares during the quarter. When combined with the common dividend, the share repurchases approximate a return to shareholders of 98% of adjusted(1) quarterly earnings. We anticipate further share buyback activity in the third quarter, absent higher priority capital deployment alternatives.”

Mr. Brown concluded, “Throughout the summer, the number of associates working in our offices has increased steadily in anticipation of a broader return, and we are very much looking forward to welcoming all of our associates back in the beginning of August. We have learned a great deal from the remote environment during the last 16 months and are excited to incorporate the best practices derived from that experience into our culture moving forward, including greater associate flexibility.”

Full detail of the Company’s second 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, July 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 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 10158382. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

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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 June 30, 2021, the Company had $16.0 billion in assets, $9.5 billion in loans, $12.5 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 $3.2 billion in assets under management as of June 30, 2021. The Company operated 139 full service banking centers as of June 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
June 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,Six months ended,
June 30,Mar. 31,Dec. 31,Sep. 30,June 30,June 30,
2021202120202020202020212020
RESULTS OF OPERATIONS
Net income$50,888 $47,315 $48,312 $41,477 $37,393 $98,203 $66,021 
Net earnings per share - basic$0.53 $0.49 $0.50 $0.43 $0.38 $1.02 $0.68 
Net earnings per share - diluted$0.52 $0.48 $0.49 $0.42 $0.38 $1.01 $0.67 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 $0.46 $0.46 
KEY FINANCIAL RATIOS
Return on average assets1.26 %1.20 %1.20 %1.04 %0.96 %1.23 %0.88 %
Return on average shareholders' equity9.02 %8.44 %8.52 %7.40 %6.88 %8.73 %6.04 %
Return on average tangible shareholders' equity (1)
16.31 %15.24 %15.50 %13.61 %12.90 %15.78 %11.29 %
Net interest margin3.27 %3.35 %3.45 %3.32 %3.38 %3.31 %3.54 %
Net interest margin (fully tax equivalent) (1)(2)
3.31 %3.40 %3.49 %3.36 %3.44 %3.35 %3.60 %
Ending shareholders' equity as a percent of ending assets14.15 %13.97 %14.29 %14.11 %13.99 %14.15 %13.99 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
8.37 %8.22 %8.47 %8.25 %8.09 %8.37 %8.09 %
Risk-weighted assets (1)
11.12 %11.02 %11.29 %11.07 %10.89 %11.12 %10.89 %
Average shareholders' equity as a percent of average assets13.96 %14.17 %14.07 %14.08 %13.91 %14.06 %14.54 %
Average tangible shareholders' equity as a percent of
    average tangible assets (1)
8.23 %8.38 %8.26 %8.18 %7.94 %8.30 %8.34 %
Book value per share$23.59 $23.16 $23.28 $22.94 $22.66 $23.59 $22.66 
Tangible book value per share (1)
$13.08 $12.78 $12.93 $12.56 $12.26 $13.08 $12.26 
Common equity tier 1 ratio (3)
11.78 %11.81 %11.82 %11.63 %11.49 %11.78 %11.49 %
Tier 1 ratio (3)
12.16 %12.19 %12.20 %12.02 %11.87 %12.16 %11.87 %
Total capital ratio (3)
15.31 %15.41 %15.55 %15.37 %15.19 %15.31 %15.19 %
Leverage ratio (3)
9.14 %9.34 %9.55 %9.55 %8.98 %9.14 %8.98 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$9,831,965 $9,951,855 $10,127,881 $10,253,392 $10,002,379 $9,891,579 $9,611,511 
Investment securities4,130,207 3,782,993 3,403,839 3,162,832 3,164,243 3,957,559 3,139,983 
Interest-bearing deposits with other banks45,593 46,912 143,884 40,277 91,990 46,249 65,661 
  Total earning assets$14,007,765 $13,781,760 $13,675,604 $13,456,501 $13,258,612 $13,895,387 $12,817,155 
Total assets$16,215,469 $16,042,654 $16,030,986 $15,842,010 $15,710,204 $16,129,539 $15,117,313 
Noninterest-bearing deposits$4,003,626 $3,840,046 $3,720,417 $3,535,432 $3,335,866 $3,922,288 $2,989,553 
Interest-bearing deposits8,707,553 8,531,822 8,204,306 8,027,082 8,395,229 8,620,173 7,993,010 
  Total deposits$12,711,179 $12,371,868 $11,924,723 $11,562,514 $11,731,095 $12,542,461 $10,982,563 
Borrowings$749,114 $886,379 $1,307,461 $1,519,748 $1,272,819 $817,367 $1,504,293 
Shareholders' equity$2,263,687 $2,272,749 $2,256,062 $2,230,422 $2,185,865 $2,268,193 $2,197,799 
CREDIT QUALITY RATIOS
Allowance to ending loans1.68 %1.71 %1.77 %1.65 %1.56 %1.68 %1.56 %
Allowance to nonaccrual loans184.77 %199.33 %217.55 %216.28 %233.74 %184.77 %233.74 %
Allowance to nonperforming loans162.12 %175.44 %199.97 %196.69 %208.06 %162.12 %208.06 %
Nonperforming loans to total loans1.03 %0.97 %0.89 %0.84 %0.75 %1.03 %0.75 %
Nonperforming assets to ending loans, plus OREO1.04 %0.98 %0.90 %0.86 %0.77 %1.04 %0.77 %
Nonperforming assets to total assets0.62 %0.60 %0.56 %0.55 %0.49 %0.62 %0.49 %
Classified assets to total assets1.14 %1.22 %0.89 %0.84 %0.79 %1.14 %0.79 %
Net charge-offs to average loans (annualized)0.23 %0.38 %0.26 %0.21 %0.12 %0.30 %0.05 %

(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) June 30, 2021 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended,Six months ended,
June 30,June 30,
20212020% Change20212020% Change
Interest income
  Loans and leases, including fees$97,494 $105,900 (7.9)%$196,425 $221,675 (11.4)%
  Investment securities
     Taxable19,524 18,476 5.7 %38,131 37,481 1.7 %
     Tax-exempt4,871 4,937 (1.3)%9,914 9,519 4.1 %
        Total investment securities interest24,395 23,413 4.2 %48,045 47,000 2.2 %
  Other earning assets25 47 (46.8)%53 189 (72.0)%
       Total interest income121,914 129,360 (5.8)%244,523 268,864 (9.1)%
Interest expense
  Deposits3,693 11,751 (68.6)%8,026 28,116 (71.5)%
  Short-term borrowings53 1,274 (95.8)%120 6,361 (98.1)%
  Long-term borrowings4,142 4,759 (13.0)%8,475 8,529 (0.6)%
      Total interest expense7,888 17,784 (55.6)%16,621 43,006 (61.4)%
      Net interest income114,026 111,576 2.2 %227,902 225,858 0.9 %
  Provision for credit losses-loans and leases (4,756)17,859 (126.6)%(1,306)41,739 (103.1)%
  Provision for credit losses-unfunded commitments 517 2,370 (78.2)%1,055 3,938 (73.2)%
      Net interest income after provision for credit losses118,265 91,347 29.5 %228,153 180,181 26.6 %
Noninterest income
  Service charges on deposit accounts7,537 6,001 25.6 %14,683 14,436 1.7 %
  Trust and wealth management fees6,216 5,254 18.3 %11,846 10,951 8.2 %
  Bankcard income3,732 2,844 31.2 %6,860 5,542 23.8 %
  Client derivative fees1,795 2,984 (39.8)%3,351 6,089 (45.0)%
  Foreign exchange income12,037 6,576 83.0 %22,794 16,542 37.8 %
  Net gains from sales of loans8,489 16,662 (49.1)%17,943 19,493 (8.0)%
  Net gains (losses) on sale of investment securities(265)2 N/M(431)(57)N/M
  Unrealized gain (loss) on equity securities161 150 7.3 %273 52 N/M
  Other3,285 2,252 45.9 %5,990 5,061 18.4 %
      Total noninterest income42,987 42,725 0.6 %83,309 78,109 6.7 %
Noninterest expenses
  Salaries and employee benefits60,784 55,925 8.7 %122,037 110,747 10.2 %
  Net occupancy5,535 5,378 2.9 %11,239 11,482 (2.1)%
  Furniture and equipment3,371 3,681 (8.4)%7,340 7,734 (5.1)%
  Data processing7,864 7,019 12.0 %15,151 13,408 13.0 %
  Marketing2,035 1,339 52.0 %3,396 2,559 32.7 %
  Communication746 907 (17.8)%1,584 1,797 (11.9)%
  Professional services2,029 2,205 (8.0)%3,479 4,480 (22.3)%
  State intangible tax1,201 1,514 (20.7)%2,403 3,030 (20.7)%
  FDIC assessments1,362 1,290 5.6 %2,711 2,695 0.6 %
  Intangible amortization 2,480 2,791 (11.1)%4,959 5,583 (11.2)%
  Other12,236 6,640 84.3 %17,850 14,840 20.3 %
      Total noninterest expenses99,643 88,689 12.4 %192,149 178,355 7.7 %
Income before income taxes61,609 45,383 35.8 %119,313 79,935 49.3 %
Income tax expense10,721 7,990 34.2 %21,110 13,914 51.7 %
      Net income$50,888 $37,393 36.1 %$98,203 $66,021 48.7 %
ADDITIONAL DATA
Net earnings per share - basic$0.53 $0.38 $1.02 $0.68 
Net earnings per share - diluted$0.52 $0.38 $1.01 $0.67 
Dividends declared per share$0.23 $0.23 $0.46 $0.46 
Return on average assets1.26 %0.96 %1.23 %0.88 %
Return on average shareholders' equity9.02 %6.88 %8.73 %6.04 %
Interest income$121,914 $129,360 (5.8)%$244,523 $268,864 (9.1)%
Tax equivalent adjustment1,619 1,664 (2.7)%3,271 3,288 (0.5)%
   Interest income - tax equivalent123,533 131,024 (5.7)%247,794 272,152 (9.0)%
Interest expense7,888 17,784 (55.6)%16,621 43,006 (61.4)%
   Net interest income - tax equivalent$115,645 $113,240 2.1 %$231,173 $229,146 0.9 %
Net interest margin3.27 %3.38 %3.31 %3.54 %
Net interest margin (fully tax equivalent) (1)
3.31 %3.44 %3.35 %3.60 %
Full-time equivalent employees2,053 2,076 
(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
SecondFirstYear to% Change
QuarterQuarterDateLinked Qtr.
Interest income
  Loans and leases, including fees$97,494 $98,931 $196,425 (1.5)%
  Investment securities
     Taxable19,524 18,607 38,131 4.9 %
     Tax-exempt4,871 5,043 9,914 (3.4)%
        Total investment securities interest24,395 23,650 48,045 3.2 %
  Other earning assets25 28 53 (10.7)%
       Total interest income121,914 122,609 244,523 (0.6)%
Interest expense
  Deposits3,693 4,333 8,026 (14.8)%
  Short-term borrowings53 67 120 (20.9)%
  Long-term borrowings4,142 4,333 8,475 (4.4)%
      Total interest expense7,888 8,733 16,621 (9.7)%
      Net interest income114,026 113,876 227,902 0.1 %
  Provision for credit losses-loans and leases (4,756)3,450 (1,306)(237.9)%
  Provision for credit losses-unfunded commitments 517 538 1,055 (3.9)%
      Net interest income after provision for credit losses118,265 109,888 228,153 7.6 %
Noninterest income
  Service charges on deposit accounts7,537 7,146 14,683 5.5 %
  Trust and wealth management fees6,216 5,630 11,846 10.4 %
  Bankcard income3,732 3,128 6,860 19.3 %
  Client derivative fees1,795 1,556 3,351 15.4 %
  Foreign exchange income12,037 10,757 22,794 11.9 %
  Net gains from sales of loans8,489 9,454 17,943 (10.2)%
  Net gains (losses) on sale of investment securities(265)(166)(431)59.6 %
  Unrealized gain (loss) on equity securities161 112 273 43.8 %
  Other3,285 2,705 5,990 21.4 %
      Total noninterest income42,987 40,322 83,309 6.6 %
Noninterest expenses
  Salaries and employee benefits60,784 61,253 122,037 (0.8)%
  Net occupancy5,535 5,704 11,239 (3.0)%
  Furniture and equipment3,371 3,969 7,340 (15.1)%
  Data processing7,864 7,287 15,151 7.9 %
  Marketing2,035 1,361 3,396 49.5 %
  Communication746 838 1,584 (11.0)%
  Professional services2,029 1,450 3,479 39.9 %
  State intangible tax1,201 1,202 2,403 (0.1)%
  FDIC assessments1,362 1,349 2,711 1.0 %
  Intangible amortization 2,480 2,479 4,959 0.0 %
  Other12,236 5,614 17,850 118.0 %
      Total noninterest expenses99,643 92,506 192,149 7.7 %
Income before income taxes61,609 57,704 119,313 6.8 %
Income tax expense10,721 10,389 21,110 3.2 %
      Net income$50,888 $47,315 $98,203 7.6 %
ADDITIONAL DATA
Net earnings per share - basic$0.53 $0.49 $1.02 
Net earnings per share - diluted$0.52 $0.48 $1.01 
Dividends declared per share$0.23 $0.23 $0.46 
Return on average assets1.26 %1.20 %1.23 %
Return on average shareholders' equity9.02 %8.44 %8.73 %
Interest income$121,914 $122,609 $244,523 (0.6)%
Tax equivalent adjustment1,619 1,652 3,271 (2.0)%
   Interest income - tax equivalent123,533 124,261 247,794 (0.6)%
Interest expense7,888 8,733 16,621 (9.7)%
   Net interest income - tax equivalent$115,645 $115,528 $231,173 0.1 %
Net interest margin3.27 %3.35 %3.31 %
Net interest margin (fully tax equivalent) (1)
3.31 %3.40 %3.35 %
Full-time equivalent employees2,053 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)
June 30,Mar. 31,Dec. 31,Sep. 30,June 30,% Change% Change
20212021202020202020Linked Qtr.Comp Qtr.
ASSETS
     Cash and due from banks$206,918 $210,191 $231,054 $207,128 $283,639 (1.6)%(27.0)%
     Interest-bearing deposits with other banks38,610 19,180 20,305 38,806 38,845 101.3 %(0.6)%
     Investment securities available-for-sale3,955,839 3,753,763 3,424,580 3,004,963 2,897,413 5.4 %36.5 %
     Investment securities held-to-maturity112,456 121,945 131,687 118,072 127,347 (7.8)%(11.7)%
     Other investments129,432 131,814 133,198 118,292 132,366 (1.8)%(2.2)%
     Loans held for sale31,546 34,590 41,103 69,008 43,950 (8.8)%(28.2)%
     Loans and leases
       Commercial and industrial2,701,203 3,044,825 3,007,509 3,292,313 3,322,374 (11.3)%(18.7)%
       Lease financing68,229 66,574 72,987 74,742 80,087 2.5 %(14.8)%
       Construction real estate630,329 642,709 636,096 575,648 506,085 (1.9)%24.6 %
       Commercial real estate4,332,561 4,396,582 4,307,858 4,347,125 4,343,702 (1.5)%(0.3)%
       Residential real estate932,112 946,522 1,003,086 1,027,702 1,043,745 (1.5)%(10.7)%
       Home equity711,756 709,667 743,099 754,743 764,171 0.3 %(6.9)%
       Installment89,143 82,421 81,850 84,629 79,150 8.2 %12.6 %
       Credit card46,177 44,669 48,485 43,907 42,397 3.4 %8.9 %
          Total loans9,511,510 9,933,969 9,900,970 10,200,809 10,181,711 (4.3)%(6.6)%
       Less:
          Allowance for credit losses 159,590 169,923 175,679 168,544 158,661 (6.1)%0.6 %
                Net loans 9,351,920 9,764,046 9,725,291 10,032,265 10,023,050 (4.2)%(6.7)%
     Premises and equipment192,238 204,537 207,211 209,474 211,164 (6.0)%(9.0)%
     Goodwill 937,771 937,771 937,771 937,771 937,771 0.0 %0.0 %
     Other intangibles59,391 61,984 64,552 67,419 70,325 (4.2)%(15.5)%
     Accrued interest and other assets1,021,798 935,250 1,056,382 1,122,449 1,105,020 9.3 %(7.5)%
       Total Assets$16,037,919 $16,175,071 $15,973,134 $15,925,647 $15,870,890 (0.8)%1.1 %
LIABILITIES
     Deposits
       Interest-bearing demand$2,963,151 $2,914,761 $2,914,787 $2,632,467 $2,657,841 1.7 %11.5 %
       Savings4,093,229 4,006,181 3,680,774 3,446,678 3,287,314 2.2 %24.5 %
       Time1,548,109 1,731,757 1,872,733 1,935,392 2,241,212 (10.6)%(30.9)%
          Total interest-bearing deposits8,604,489 8,652,699 8,468,294 8,014,537 8,186,367 (0.6)%5.1 %
       Noninterest-bearing3,901,691 3,995,370 3,763,709 3,552,893 3,515,048 (2.3)%11.0 %
          Total deposits12,506,180 12,648,069 12,232,003 11,567,430 11,701,415 (1.1)%6.9 %
     Federal funds purchased and securities sold
         under agreements to repurchase255,791 181,387 166,594 247,658 154,347 41.0 %65.7 %
     FHLB short-term borrowings217,000 0 0 0 0 100.0 %100.0 %
          Total short-term borrowings472,791 181,387 166,594 247,658 154,347 160.7 %206.3 %
     Long-term debt313,039 583,722 776,202 1,341,164 1,285,767 (46.4)%(75.7)%
          Total borrowed funds785,830 765,109 942,796 1,588,822 1,440,114 2.7 %(45.4)%
     Accrued interest and other liabilities476,402 502,951 516,265 521,580 508,342 (5.3)%(6.3)%
       Total Liabilities13,768,412 13,916,129 13,691,064 13,677,832 13,649,871 (1.1)%0.9 %
SHAREHOLDERS' EQUITY
     Common stock1,635,470 1,633,137 1,638,947 1,637,489 1,635,070 0.1 %0.0 %
     Retained earnings773,857 745,220 720,429 694,484 675,532 3.8 %14.6 %
     Accumulated other comprehensive income (loss)30,735 18,101 48,664 42,266 36,431 69.8 %(15.6)%
     Treasury stock, at cost(170,555)(137,516)(125,970)(126,424)(126,014)24.0 %35.3 %
       Total Shareholders' Equity2,269,507 2,258,942 2,282,070 2,247,815 2,221,019 0.5 %2.2 %
       Total Liabilities and Shareholders' Equity$16,037,919 $16,175,071 $15,973,134 $15,925,647 $15,870,890 (0.8)%1.1 %

6

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly AveragesYear-to-Date Averages
June 30,Mar. 31,Dec. 31,Sep. 30,June 30,June 30,
2021202120202020202020212020
ASSETS
     Cash and due from banks$237,964 $232,275 $228,427 $233,216 $284,726 $235,135 $260,211 
     Interest-bearing deposits with other banks45,593 46,912 143,884 40,277 91,990 46,249 65,661 
     Investment securities4,130,207 3,782,993 3,403,839 3,162,832 3,164,243 3,957,559 3,139,983 
     Loans held for sale28,348 29,689 42,402 45,186 36,592 29,015 24,883 
     Loans and leases
       Commercial and industrial2,953,185 3,029,716 3,182,749 3,299,259 3,058,677 2,991,239 2,754,785 
       Lease financing66,124 70,508 74,107 78,500 81,218 68,304 83,500 
       Construction real estate630,351 647,655 608,401 536,870 495,407 638,955 498,439 
       Commercial real estate4,372,679 4,339,349 4,313,408 4,364,708 4,381,647 4,356,106 4,295,496 
       Residential real estate940,600 980,718 1,022,701 1,041,250 1,052,996 960,548 1,054,226 
       Home equity707,409 726,134 752,425 759,994 772,424 716,720 772,753 
       Installment84,768 81,377 83,509 82,016 79,016 83,082 80,125 
       Credit card48,501 46,709 48,179 45,609 44,402 47,610 47,304 
          Total loans9,803,617 9,922,166 10,085,479 10,208,206 9,965,787 9,862,564 9,586,628 
       Less:
          Allowance for credit losses 169,979 177,863 172,201 165,270 155,454 173,899 138,290 
                Net loans 9,633,638 9,744,303 9,913,278 10,042,936 9,810,333 9,688,665 9,448,338 
     Premises and equipment200,558 206,628 208,800 211,454 213,903 203,576 214,724 
     Goodwill 937,771 937,771 937,771 937,771 937,771 937,771 937,771 
     Other intangibles60,929 63,529 66,195 69,169 72,086 62,222 73,550 
     Accrued interest and other assets940,461 998,554 1,086,390 1,099,169 1,098,560 969,347 952,192 
       Total Assets$16,215,469 $16,042,654 $16,030,986 $15,842,010 $15,710,204 $16,129,539 $15,117,313 
LIABILITIES
     Deposits
       Interest-bearing demand$2,973,930 $2,948,682 $2,812,748 $2,668,635 $2,602,917 $2,961,376 $2,510,555 
       Savings4,096,077 3,815,314 3,547,179 3,342,514 3,173,274 3,956,471 3,074,896 
       Time1,637,546 1,767,826 1,844,379 2,015,933 2,619,038 1,702,326 2,407,559 
          Total interest-bearing deposits8,707,553 8,531,822 8,204,306 8,027,082 8,395,229 8,620,173 7,993,010 
       Noninterest-bearing4,003,626 3,840,046 3,720,417 3,535,432 3,335,866 3,922,288 2,989,553 
          Total deposits12,711,179 12,371,868 11,924,723 11,562,514 11,731,095 12,542,461 10,982,563 
     Federal funds purchased and securities sold
          under agreements to repurchase194,478 184,483 136,795 150,088 145,291 189,508 154,692 
     FHLB short-term borrowings40,846 67,222 7,937 30,868 548,183 53,961 868,974 
          Total short-term borrowings235,324 251,705 144,732 180,956 693,474 243,469 1,023,666 
     Long-term debt513,790 634,674 1,162,729 1,338,792 579,345 573,898 480,627 
       Total borrowed funds749,114 886,379 1,307,461 1,519,748 1,272,819 817,367 1,504,293 
     Accrued interest and other liabilities491,489 511,658 542,740 529,326 520,425 501,518 432,658 
       Total Liabilities13,951,782 13,769,905 13,774,924 13,611,588 13,524,339 13,861,346 12,919,514 
SHAREHOLDERS' EQUITY
     Common stock1,633,950 1,636,884 1,638,032 1,636,107 1,634,405 1,635,409 1,636,628 
     Retained earnings754,456 726,351 703,257 679,980 658,312 740,481 659,210 
     Accumulated other comprehensive loss25,832 42,253 40,960 40,697 19,888 33,997 25,544 
     Treasury stock, at cost(150,551)(132,739)(126,187)(126,362)(126,740)(141,694)(123,583)
       Total Shareholders' Equity2,263,687 2,272,749 2,256,062 2,230,422 2,185,865 2,268,193 2,197,799 
       Total Liabilities and Shareholders' Equity$16,215,469 $16,042,654 $16,030,986 $15,842,010 $15,710,204 $16,129,539 $15,117,313 

7

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 Quarterly AveragesYear-to-Date Averages
June 30, 2021March 31, 2021June 30, 2020June 30, 2021June 30, 2020
BalanceYieldBalanceYieldBalanceYieldBalanceYieldBalanceYield
Earning assets
    Investments:
      Investment securities$4,130,207 2.37 %$3,782,993 2.54 %$3,164,243 2.97 %$3,957,559 2.45 %$3,139,983 3.02 %
      Interest-bearing deposits with other banks45,593 0.22 %46,912 0.24 %91,990 0.20 %46,249 0.23 %65,661 0.58 %
    Gross loans (1)
9,831,965 3.98 %9,951,855 4.03 %10,002,379 4.25 %9,891,579 4.00 %9,611,511 4.65 %
       Total earning assets14,007,765 3.49 %13,781,760 3.61 %13,258,612 3.91 %13,895,387 3.55 %12,817,155 4.23 %
Nonearning assets
    Allowance for credit losses(169,979)(177,863)(155,454)(173,899)(138,290)
    Cash and due from banks237,964 232,275 284,726 235,135 260,211 
    Accrued interest and other assets2,139,719 2,206,482 2,322,320 2,172,916 2,178,237 
       Total assets$16,215,469 $16,042,654 $15,710,204 $16,129,539 $15,117,313 
Interest-bearing liabilities
    Deposits:
      Interest-bearing demand$2,973,930 0.07 %$2,948,682 0.07 %$2,602,917 0.11 %$2,961,376 0.07 %$2,510,555 0.27 %
      Savings4,096,077 0.11 %3,815,314 0.13 %3,173,274 0.17 %3,956,471 0.12 %3,074,896 0.31 %
      Time1,637,546 0.51 %1,767,826 0.60 %2,619,038 1.49 %1,702,326 0.56 %2,407,559 1.68 %
    Total interest-bearing deposits8,707,553 0.17 %8,531,822 0.21 %8,395,229 0.56 %8,620,173 0.19 %7,993,010 0.71 %
    Borrowed funds
      Short-term borrowings235,324 0.09 %251,705 0.11 %693,474 0.74 %243,469 0.10 %1,023,666 1.25 %
      Long-term debt513,790 3.23 %634,674 2.77 %579,345 3.29 %573,898 2.98 %480,627 3.58 %
        Total borrowed funds749,114 2.25 %886,379 2.01 %1,272,819 1.90 %817,367 2.12 %1,504,293 2.00 %
       Total interest-bearing liabilities9,456,667 0.33 %9,418,201 0.38 %9,668,048 0.74 %9,437,540 0.36 %9,497,303 0.91 %
Noninterest-bearing liabilities
    Noninterest-bearing demand deposits4,003,626 3,840,046 3,335,866 3,922,288 2,989,553 
    Other liabilities491,489 511,658 520,425 501,518 432,658 
    Shareholders' equity2,263,687 2,272,749 2,185,865 2,268,193 2,197,799 
       Total liabilities & shareholders' equity$16,215,469 $16,042,654 $15,710,204 $16,129,539 $15,117,313 
Net interest income $114,026 $113,876 $111,576 $227,902 $225,858 
Net interest spread 3.16 %3.23 %3.17 %3.19 %3.32 %
Net interest margin 3.27 %3.35 %3.38 %3.31 %3.54 %
Tax equivalent adjustment0.04 %0.05 %0.06 %0.04 %0.06 %
Net interest margin (fully tax equivalent)3.31 %3.40 %3.44 %3.35 %3.60 %
(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$(1,551)$2,296 $745 $(4,723)$5,705 $982 $(8,880)$9,925 $1,045 
    Interest-bearing deposits with other banks(3)0 (3)3 (25)(22)(114)(22)(136)
    Gross loans (2)
(1,333)(104)(1,437)(6,716)(1,690)(8,406)(30,812)5,562 (25,250)
       Total earning assets(2,887)2,192 (695)(11,436)3,990 (7,446)(39,806)15,465 (24,341)
Interest-bearing liabilities
    Total interest-bearing deposits$(754)$114 $(640)$(8,190)$132 $(8,058)$(20,674)$584 $(20,090)
    Borrowed funds
    Short-term borrowings(11)(3)(14)(1,118)(103)(1,221)(5,856)(385)(6,241)
    Long-term debt727 (918)(191)(89)(528)(617)(1,431)1,377 (54)
       Total borrowed funds716 (921)(205)(1,207)(631)(1,838)(7,287)992 (6,295)
       Total interest-bearing liabilities(38)(807)(845)(9,397)(499)(9,896)(27,961)1,576 (26,385)
          Net interest income (1)
$(2,849)$2,999 $150 $(2,039)$4,489 $2,450 $(11,845)$13,889 $2,044 
(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)
Six months ended
June 30,Mar. 31,Dec. 31,Sep. 30,June 30,June 30,June 30,
2021202120202020202020212020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period$169,923 $175,679 $168,544 $158,661 $143,885 $175,679 $57,650 
 Day one adoption impact of ASC 3260 0 0 0 0 0 61,505 
  Provision for credit losses(4,756)3,450 13,758 15,299 17,859 (1,306)41,739 
  Gross charge-offs
    Commercial and industrial3,729 7,910 1,505 1,467 1,282 11,639 2,373 
    Lease financing0 0 0 852 0 0 0 
    Construction real estate0 2 0 0 0 2 0 
    Commercial real estate2,041 1,250 6,270 3,789 2,037 3,291 2,041 
    Residential real estate46 1 203 22 148 47 263 
    Home equity240 611 386 460 428 851 695 
    Installment77 36 21 59 7 113 68 
    Credit card179 222 169 171 234 401 545 
      Total gross charge-offs 6,312 10,032 8,554 6,820 4,136 16,344 5,985 
  Recoveries
    Commercial and industrial205 337 367 265 275 542 2,275 
    Lease financing0 0 (6)6 0 0 0 
    Construction real estate3 0 3 0 14 3 14 
    Commercial real estate75 195 844 760 424 270 658 
    Residential real estate54 44 145 91 93 98 145 
    Home equity317 177 428 209 156 494 495 
    Installment37 34 65 35 27 71 58 
    Credit card44 39 85 38 64 83 107 
      Total recoveries735 826 1,931 1,404 1,053 1,561 3,752 
  Total net charge-offs5,577 9,206 6,623 5,416 3,083 14,783 2,233 
Ending allowance for credit losses$159,590 $169,923 $175,679 $168,544 $158,661 $159,590 $158,661 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
  Commercial and industrial0.48 %1.01 %0.14 %0.14 %0.13 %0.75 %0.01 %
  Lease financing0.00 %0.00 %0.03 %4.29 %0.00 %0.00 %0.00 %
  Construction real estate0.00 %0.00 %0.00 %0.00 %(0.01)%0.00 %(0.01)%
  Commercial real estate0.18 %0.10 %0.50 %0.28 %0.15 %0.14 %0.06 %
  Residential real estate0.00 %(0.02)%0.02 %(0.03)%0.02 %(0.01)%0.02 %
  Home equity(0.04)%0.24 %(0.02)%0.13 %0.14 %0.10 %0.05 %
  Installment0.19 %0.01 %(0.21)%0.12 %(0.10)%0.10 %0.03 %
  Credit card1.12 %1.59 %0.69 %1.16 %1.54 %1.35 %1.86 %
     Total net charge-offs0.23 %0.38 %0.26 %0.21 %0.12 %0.30 %0.05 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
  Nonaccrual loans (1)
    Commercial and industrial$27,426 $24,941 $29,230 $34,686 $33,906 $27,426 $33,906 
    Lease financing16 0 0 1,092 1,353 16 1,353 
    Construction real estate0 0 0 0 0 0 0 
    Commercial real estate45,957 44,514 34,682 24,521 14,002 45,957 14,002 
    Residential real estate9,480 11,359 11,601 12,104 12,813 9,480 12,813 
    Home equity3,376 4,286 5,076 5,374 5,604 3,376 5,604 
    Installment115 146 163 153 201 115 201 
      Nonaccrual loans86,370 85,246 80,752 77,930 67,879 86,370 67,879 
  Accruing troubled debt restructurings (TDRs)12,070 11,608 7,099 7,759 8,377 12,070 8,377 
     Total nonperforming loans98,440 96,854 87,851 85,689 76,256 98,440 76,256 
  Other real estate owned (OREO)340 854 1,287 1,643 1,872 340 1,872 
     Total nonperforming assets98,780 97,708 89,138 87,332 78,128 98,780 78,128 
  Accruing loans past due 90 days or more155 92 169 79 124 155 124 
     Total underperforming assets$98,935 $97,800 $89,307 $87,411 $78,252 $98,935 $78,252 
Total classified assets$182,516 $196,782 $142,021 $134,002 $125,543 $182,516 $125,543 
CREDIT QUALITY RATIOS
Allowance for credit losses to
     Nonaccrual loans184.77 %199.33 %217.55 %216.28 %233.74 %184.77 %233.74 %
     Nonperforming loans162.12 %175.44 %199.97 %196.69 %208.06 %162.12 %208.06 %
     Total ending loans1.68 %1.71 %1.77 %1.65 %1.56 %1.68 %1.56 %
Nonperforming loans to total loans1.03 %0.97 %0.89 %0.84 %0.75 %1.03 %0.75 %
Nonperforming assets to
     Ending loans, plus OREO1.04 %0.98 %0.90 %0.86 %0.77 %1.04 %0.77 %
     Total assets0.62 %0.60 %0.56 %0.55 %0.49 %0.62 %0.49 %
Nonperforming assets, excluding accruing TDRs to
     Ending loans, plus OREO0.91 %0.87 %0.83 %0.78 %0.68 %0.91 %0.68 %
     Total assets0.54 %0.53 %0.51 %0.50 %0.44 %0.54 %0.44 %
Classified assets to total assets1.14 %1.22 %0.89 %0.84 %0.79 %1.14 %0.79 %
(1) Nonaccrual loans include nonaccrual TDRs of $21.5 million, $20.9 million, $14.7 million, $29.3 million, and $32.7 million, as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Six months ended,
June 30,Mar. 31,Dec. 31,Sep. 30,June 30,June 30,June 30,
2021202120202020202020212020
PER COMMON SHARE
Market Price
  High$26.02 $26.40 $17.77 $15.15 $16.38 $26.40 $25.52 
  Low$23.35 $17.62 $12.07 $11.40 $11.52 $17.62 $11.52 
  Close$23.63 $24.00 $17.53 $12.01 $13.89 $23.63 $13.89 
Average shares outstanding - basic96,123,645 96,873,940 97,253,787 97,247,080 97,220,748 96,496,720 97,478,719 
Average shares outstanding - diluted97,009,712 97,727,527 98,020,534 98,008,733 97,988,600 97,366,640 98,172,408 
Ending shares outstanding96,199,509 97,517,693 98,021,929 97,999,763 98,018,858 96,199,509 98,018,858 
Total shareholders' equity$2,269,507 $2,258,942 $2,282,070 $2,247,815 $2,221,019 $2,269,507 $2,221,019 
REGULATORY CAPITALPreliminaryPreliminary
Common equity tier 1 capital$1,333,209 $1,334,882 $1,325,922 $1,293,716 $1,267,609 $1,333,209 $1,267,609 
Common equity tier 1 capital ratio11.78 %11.81 %11.82 %11.63 %11.49 %11.78 %11.49 %
Tier 1 capital$1,376,333 $1,377,892 $1,368,818 $1,336,497 $1,310,276 $1,376,333 $1,310,276 
Tier 1 ratio12.16 %12.19 %12.20 %12.02 %11.87 %12.16 %11.87 %
Total capital$1,732,930 $1,741,755 $1,744,802 $1,708,817 $1,676,532 $1,732,930 $1,676,532 
Total capital ratio15.31 %15.41 %15.55 %15.37 %15.19 %15.31 %15.19 %
Total capital in excess of minimum requirement$544,478 $554,834 $566,795 $541,263 $517,902 $544,478 $517,902 
Total risk-weighted assets$11,318,590 $11,304,012 $11,219,114 $11,119,560 $11,034,570 $11,318,590 $11,034,570 
Leverage ratio9.14 %9.34 %9.55 %9.55 %8.98 %9.14 %8.98 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets14.15 %13.97 %14.29 %14.11 %13.99 %14.15 %13.99 %
Ending tangible shareholders' equity to ending tangible assets (1)
8.37 %8.22 %8.47 %8.25 %8.09 %8.37 %8.09 %
Average shareholders' equity to average assets13.96 %14.17 %14.07 %14.08 %13.91 %14.06 %14.54 %
Average tangible shareholders' equity to average tangible assets (1)
8.23 %8.38 %8.26 %8.18 %7.94 %8.30 %8.34 %
REPURCHASE PROGRAM (2)
Shares repurchased1,308,945 840,115 0 0 0 2,149,060 880,000 
Average share repurchase price$25.11 $21.40 N/AN/AN/A$23.66 $18.96 
Total cost of shares repurchased$32,864 $17.982 N/AN/AN/A$50,846 $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 Second 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.

 
2Q 2021 Results 123rd Consecutive Quarter of Profitability 4 EOP assets decreased $137.2 million compared to the linked quarter to $16.0 billion EOP loans decreased $422.5 million compared to the linked quarter to $9.5 billion Average deposits increased $339.3 million compared to the linked quarter to $12.7 billion EOP investment securities increased $190.2 million compared to the linked quarter Balance Sheet Profitability Asset Quality Income Statement Capital Noninterest income - $43.0 million Noninterest expense - $99.6 million; $91.8 million as adjusted Efficiency ratio - 63.46%. Adjusted1 efficiency ratio - 58.42% Effective tax rate of 17.4%. Adjusted1 effective tax rate of 19.1% Net interest income - $114.0 million. Net interest margin of 3.27% on a GAAP basis; 3.31% on a fully tax equivalent basis1 Net income - $50.9 million or $0.52 per diluted share. Adjusted1 net income - $56.3 million or $0.58 per diluted share2 Return on average assets - 1.26%. Adjusted1 return on average assets - 1.39% Return on average shareholders’ equity - 9.02%. Adjusted1 return on average shareholders’ equity - 9.97% Return on average tangible common equity - 16.31%1. Adjusted1 return on average tangible common equity - 18.03% Provision recapture - $4.2 million. Net charge-offs - $5.6 million. NCOs / Avg. Loans - 0.23% annualized Nonperforming Loans / Total Loans - 1.03%. Nonperforming Assets / Total Assets - 0.62% ACL / Nonaccrual Loans - 184.77%. Classified Assets / Total Assets - 1.14% ACL / Total loans - 1.68%; 1.75% of loans excluding PPP Total capital ratio - 15.31% Tier 1 common equity ratio - 11.78% Tangible common equity ratio - 8.37%; 8.61% excluding PPP loans Tangible book value per share - $13.08 Repurchased 1,308,945 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

 
2Q 2021 Highlights Quarterly earnings driven by strong fee income and lower credit costs Adjusted1 earnings per share - $0.58 Adjusted1 return on assets - 1.39% Adjusted1 pre-tax, pre-provision return on assets - 1.62% Adjusted1 return on average tangible common equity - 18.03% Loan balances declined primarily due to PPP payoffs/forgiveness; strong core deposit growth Loan balances decreased $422.5 million compared to the linked quarter; PPP loan balances decreased $288.8 million Average transactional deposit balances grew $469.6 million compared to the linked quarter; 17.8% on an annualized basis Noninterest bearing deposits were 31.2% of total deposits at June 30, 2021 Net interest margin (FTE) in line with expectations 9 bp decrease from first quarter driven by lower asset yields, higher securities balances and day count Net interest margin, excluding loan fees and loan accretion, decreased 7 bp compared to the linked quarter Strong adjusted1 noninterest income of $43.1 million, with record foreign exchange income Foreign exchange income of $12.0 million, an increase of $1.3 million, or 11.9%, compared to the linked quarter Wealth management fees of $6.2 million, an increase of $0.6 million, or 10.4%, compared to the linked quarter Bankcard income of $3.7 million, an increase of $0.6 million, or 19.3%, compared to the linked quarter Mortgage banking revenue remained elevated at $8.5 million; decline from the linked quarter due to lower premiums Core expenses increased $1.8 million from the linked quarter, driven by increase in employee related costs and increases in marketing and professional services expenses Adjusted1 noninterest expense of $91.8 million; Adjusted1 for $3.8 million of legal settlement costs, $2.8 million of branch consolidation costs and $1.2 million of tax credit investment writedowns Efficiency ratio of 63.5%; 58.4% as adjusted1 Allowance for credit loss (ACL) and provision expense declined compared to linked quarter Loans and leases - ACL of $159.6 million; 1.68% of total loans, 1.75% excluding PPP; $4.8 million provision recapture Unfunded Commitments - ACL of $13.6 million; $0.5 million provision expense Lower provision expense driven by improved credit outlook, as well as lower net charge-offs and classified asset balances Effective tax rate of 17.4% positively impacted by tax credit investment; 19.1% as adjusted1 Strong capital ratios Total capital of 15.31%; Tier 1 common equity of 11.78%; Tangible common equity of 8.37% Tangible book value increased by $0.30 to $13.08 Tangible common equity of 8.61% excluding PPP 1,308,945 shares repurchased in second 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 114,026$ 114,026$ 113,876$ 113,876$ Provision for credit losses-loans and leases (4,756)$ (4,756)$ 3,450$ 3,450$ Provision for credit losses-unfunded commitments 517$ 517$ 538$ 538$ Noninterest income 42,987$ 42,987$ 40,322$ 40,322$ less: gains (losses) on investment securities - (104) A - (54) A less: other - - A - 193 A Total noninterest income 42,987$ 43,091$ 40,322$ 40,183$ Noninterest expense 99,643$ 99,643$ 92,506$ 92,506$ less: severance and merger-related expenses - 98 A - 1,261 A less: tax credit investment - 1,156 A - 208 A less: legal settlement - 3,825 A - - A less: other - 2,772 A - 1,054 A Total noninterest expense 99,643$ 91,792$ 92,506$ 89,983$ Income before income taxes 61,609$ 69,564$ 57,704$ 60,088$ Income tax expense 10,721$ 10,721$ 10,389$ 10,389$ plus: after-tax impact of tax credit investment @ 21% - 913 - 164 plus: tax effect of adjustments (A) @ 21% statutory rate - 1,671 - 501 Total income tax expense 10,721$ 13,305$ 10,389$ 11,054$ Net income 50,888$ 56,259$ 47,315$ 49,034$ Net earnings per share - diluted 0.52$ 0.58$ 0.48$ 0.50$ Pre-tax, pre-provision return on average assets 1.42% 1.62% 1.56% 1.62% 2Q 2021 1Q 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 $0.52$0.48$0.49 $0.42$0.38 $0.58  $0.50 $0.51  $0.44  $0.40  2Q211Q214Q203Q202Q20 Diluted EPS Adjusted EPS 1 1.26%1.20%1.20%1.04%0.96% 1.39% 1.24%1.23% 1.09% 1.00% 2Q211Q214Q203Q202Q20 ROA Adjusted ROA 1 16.31%15.24%15.50%13.61%12.90% 18.03% 15.80%15.94% 14.18%13.47% 2Q211Q214Q203Q202Q20 ROATCE Adjusted ROATCE 1 57.5% 60.3% 63.8% 60.0% 63.5% 56.1% 58.9% 56.8% 58.4% 58.4% 2Q20 3Q20 4Q20 1Q21 2Q21 Efficiency Ratio Adjusted Efficiency Ratio 1

 
Net Interest Income & Margin 8 Net Interest Margin (FTE) 2Q21 NIM (FTE) Progression Net Interest Income All dollars shown in millions $3.4$3.2$5.5$3.8$3.3 $3.5$3.4$3.9$5.4$5.8 $9.2$10.0 $12.5 $6.2$4.5 $114.0$113.9 $118.5 $112.2$111.6 2Q211Q214Q203Q202Q20 Loan Fees Loan Accretion PPP Interest/Fees 2.89%2.96%2.91%2.97%3.09% 0.10%0.09%0.15%0.11% 0.10% 0.10%0.10%0.12%0.16% 0.17% 0.22% 0.25%0.31%0.12% 0.08% 3.31% 3.40% 3.49% 3.36% 3.44% 2Q211Q214Q203Q202Q20 Basic Margin (FTE) Loan Fees Loan Accretion PPP Fees 1Q21 3.40% Increase in securities -0.03% PPP and other loan fees -0.02% Asset yields/mix -0.05% Deposit/funding costs/mix 0.03% Day count -0.02% 2Q21 3.31%

 
Average Balance Sheet 9 Average Loans Average Securities Average Deposits All dollars shown in millions 1 Includes loans fees and loan accretion $12,711$12,372$11,925$11,563$11,731 0.12%0.14%0.20% 0.27% 0.40% 2Q211Q214Q203Q202Q20 Total Deposits Cost of Deposits $4,130$3,783$3,404$3,163$3,164 2.37% 2.54%2.71%2.86%2.97% 2Q211Q214Q203Q202Q20 Average Investment Securities Investment Securities Yield $9,832$9,952$10,128$10,253 $10,002 3.98%4.03% 4.18% 4.00% 4.25% 2Q211Q214Q203Q202Q20 Gross Loans Loan Yield (Gross)1

 
Loan Portfolio 10 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) 1 Net of unearned fees of $16.6 million All dollars shown in millions Total growth/(decline):    ($422.5 million) ‐$44.9 ‐$27.4 $14.5 ‐$16.3 ‐$40.2 ‐$19.4 ‐$288.8 ICRE Commercial & Small Business Banking Consumer Mortgage Oak Street Franchise PPPICRE $3,959  42% Commercial &  Small Business  Banking $2,401  25% Consumer $820  9% Mortgage $999  10% Oak Street $545  6% Franchise $387  4% PPP $401  4% Total $9.5 Billion 1

 
Loan Concentrations 11 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 Agriculture, Transportation & Warehousing, Public Administration, Arts & Recreation, and Waste Management. Includes owner-occupied CRE. 2 Collateral types included in Other representing greater than 1% of total CRE loans include Medical Office, Residential Multi Family 5+ Construction, Student Housing, Real Estate IUB Other, and Commercial Lot. Residential, Multi  Family 5+ 24% Retail 20% Office 14% Hotel/Motel 12% Nursing/Assisted  Living 6% Restaurant 3% Industrial Facility 3% Residential, 1‐4  Family 3% Warehouse 2%Other 13% CRE Loans: $3.9B Finance &  Insurance 16% Manufacturing 14% Real Estate 12% Accommodation  & Food Services 11% Health Care 7% Construction 7% Professional &  Tech 5% Wholesale Trade 5% Retail Trade 5%Other Services 4% Other 14% C&I Loans: $3.7B

 
Deposits 12 Deposit Product Mix (Avg) 2Q21 Average Deposit Progression All dollars shown in millions Total growth/(decline):    $339.3 million Interest‐bearing  demand $1,789  14% Noninterest‐ bearing $3,790  30% Savings $1,251  10% Money Markets $2,294  18% Retail CDs $1,020  8% Brokered CDs $541  4% Public Funds $2,026  16% Total $12.7 billion                                     $53.2 $136.9 $97.3 $1.3 ‐$44.4 ‐$76.8 $171.8 Interest‐bearing demand Noninterest‐bearing Savings Money Markets Retail CDs Brokered CDs Public Funds

 
Noninterest Income 13 Noninterest Income 2Q21 Highlights All dollars shown in thousands Total fee income 27.4% of net revenue Record foreign exchange income of $12.0 million; increased $1.3 million, or 11.9%, from the linked quarter Record trust and wealth management fees of $6.2 million; increased $0.6 million, or 10.4%, from the linked quarter Bankcard income of $3.7 million; increased $0.6 million, or 19.3%, from the linked quarter Mortgage banking income of $8.5 million; decreased $1.0 million, or 10.2%, from the linked quarter Service Charges $7,537  18% Wealth Mgmt $6,216  14% Bankcard income $3,732  9% Client derivative fees $1,795  4% Foreign exchange  income $12,037  28% Mortgage  origination  income $8,489  20% Other  $3,181  7% Total $43.0 million

 
Noninterest Expense 14 Noninterest Expense 2Q21 Highlights All dollars shown in thousands Core expenses increased $1.8 million from the linked quarter, driven by higher employee costs, marketing costs and professional services Operating adjustments include: $3.8 million legal settlement $2.8 million of branch consolidation costs $1.2 million tax credit investment write-down Salaries and  benefits $60,784  61%Occupancy and  equipment $8,906  9% Data processing $7,864  8% Professional  services $2,029  2% Intangible  amortization $2,480  2% Other $17,580  18% Total $99.6 million

 
Current Expected Credit Losses - Loans and Leases 15 ACL / Total Loans 2Q21 Highlights All dollars shown in thousands $159.6 million ACL – loans and leases, or 1.68% of loan balances; 1.75% excluding PPP $4.8 million provision recapture; decline driven by improved credit outlook, lower net charge-offs and classified asset balances Utilized June Moody’s baseline forecast in quantitative model $13.6 million ACL – unfunded commitments; $0.5 million provision expense for this portion of the ACL ACL by Loan Type 1 $159.6$169.9$175.7$168.5$158.7 1.68% 1.71%1.77% 1.65% 1.56% 2Q211Q214Q203Q202Q20 Allowance for Credit Losses ACL / Total Loans 2Q20 3Q20 4Q20 1Q21 2Q21 Loans Commercial and industrial 50,421$       50,516$       51,454$       45,139$       46,797$       Lease financing 1,431           1,287           995              1,015           1,457           Real estate ‐construction 15,357         18,970         21,736         22,734         20,359         Real estate ‐ commercial 62,340         72,207         76,795         78,669         70,305         Real estate ‐ residential 10,581         9,286           8,560           7,748           6,879           Home equity 14,236         12,530         11,869         10,760         9,684           Installment  1,226           1,237           1,215           1,235           1,211           Credit card 3,069           2,511           3,055           2,623           2,898           ACL‐loan and lease losses  158,661$     168,544$     175,679$     169,923$     159,590$         ACL‐unfunded commitments  16,678$       14,753$       12,503$       13,040$       13,558$       All dollars shown in millions

 
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 $182.5 $196.8 $142.0$134.0$125.5 1.14% 1.22% 0.89%0.84%0.79% 2Q211Q214Q203Q202Q20 Classified Assets Classified Assets / Total Assets $98.8$97.7 $89.1$87.3 $78.1 0.62%0.60% 0.56%0.55% 0.49% 2Q211Q214Q203Q202Q20 NPAs NPAs / Total Assets $3.1 $5.4 $6.6 $9.2 $5.6 $20.2 $13.4 $11.5 $4.0 ‐$4.2 0.23% 0.38% 0.26%0.21% 0.12% 2Q20 3Q20 4Q20 1Q21 2Q21 NCOs Provision Expense NCOs / Average Loans

 
Capital 17 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 6/30 Risk Weighted Assets = $11,318,590 All capital numbers are considered preliminary. Tier 1 Capital Ratio 8.37%8.22% 8.47% 8.25%8.09% 2Q211Q214Q203Q202Q20 Tangible Common Equity Ratio 11.78%11.81%11.82%11.63%11.49% 7.00% 2Q211Q214Q203Q202Q20 Tier 1 Common Equity Ratio Basel III minimum 15.31%15.41%15.55%15.37%15.19% 10.50% 2Q211Q214Q203Q202Q20 Total Capital Ratio Basel III minimum 12.16%12.19%12.20%12.02%11.87% 8.50% 2Q211Q214Q203Q202Q20 Tier 1 Capital Ratio Basel III minimum

 
Capital Strategy 18 Strategy & DeploymentTangible Book Value Per Share 3.9% annualized dividend yield 1,308,945 shares repurchased in second quarter at an average price of $25.11 98% of adjusted(1) earnings returned to shareholders in 2Q21 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 $13.08  $12.78  $12.93  $12.56  $12.26  2Q211Q214Q203Q202Q20 Tangible Book Value per Share 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition.

 
® Supplemental Information

 
CARES Act Modifications as of 6/30/21 $182 million of total active modifications; 2% of total loans $181 million of loan modifications making interest only payments $0.6 million, or 0.3% full payment deferrals 100% of active commercial deferrals are interest only payments $118 million, or 65% of total deferrals are hotel loans Deferral portfolio running off as expected $93 million, or 51% of remaining deferrals are expected to expire in December of 2021 All deferrals expected to expire by end of year No material credit issues among loans that have exited deferral 20 All dollars shown in millions Active deferrals by round Active modifications by category Hotel $118  65% Other $29  16% Franchise $35  19% Round 1 $0.4  0% Round 2 $9.9  6% Round 3 $171.4  94%

 
Area of Focus - Hotel Portfolio $450 million balance represents 4.7% of the total loan portfolio $118 million, or 100% of total hotel deferrals, making interest only payments as of 6/30/21 Continued improvement in hotel performance, trending toward pre-pandemic levels Limited deterioration in average LTV reflected in updated appraisals received Minimal exposure to large convention center hotels $45.5 million rated substandard or worse 21 All dollars shown in millions Hotels by Flag Hotels by Geography $154  34% $160  36% $63  14% $35  8% $38  8% Marriott Hilton IHG Choice Other $348  77% $102  23% Footprint Out of Footprint

 
Area of Focus - Franchise Portfolio $387 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 $35 million, or 9% of total franchise loans are in deferral as of 6/30/2021; all sit down concepts $100% are making interest only payments $20.0 million rated substandard or worse 22 Top 10 Concepts Sit-down ConceptsRestaurant Type All dollars shown in millions Delivery $107  28% Drive Thru $170  44% Sit Down $110  28% $0 $5 $10 $15 $20 $25 $30 $35 $40 Golden Corral Denny's Jersey Mike's IHOP five guys Subway QDOBA Other Ba la nc es Deferral Making full payments 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% $0 $20 $40 $60 $80 $100 $120 %  o f   Po rt fo lio Ba la nc es   Balances % of Portfolio

 
Outlook Commentary1 Loan balance growth expected to be in low single digits, excluding impact of PPP, over the remainder of the year Securities balances expected to remain consistent with 6/30/21 balances Deposit balances expected to remain stable over the near-term 23 Expected to be $91-93 million, but will fluctuate with fee incomeNoninterest Expense Net Interest Margin Balance Sheet Credit Provision recapture expected for remainder of the year Allowance for credit losses expected to decline in second half of 2021 Noninterest Income Mortgage banking income expected to decline due to lower premiums Foreign exchange income expected to be $10-11 million Total fee income expected to be $39-41 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 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 Share repurchases expected to continue in 3Q21

 
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 June 30, Mar. 31, Dec. 31, Sep. 30, June 30, 2021 2021 2020 2020 2020 Net interest income 114,026$ 113,876$ 118,473$ 112,180$ 111,576$ Tax equivalent adjustment 1,619 1,652 1,613 1,628 1,664 Net interest income - tax equivalent 115,645$ 115,528$ 120,086$ 113,808$ 113,240$ Average earning assets 14,007,765$ 13,781,760$ 13,675,604$ 13,456,501$ 13,258,612$ Net interest margin1 3.27 % 3.35 % 3.45 % 3.32 % 3.38 % Net interest margin (fully tax equivalent)1 3.31 % 3.40 % 3.49 % 3.36 % 3.44 % 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 June 30, Mar. 31, Dec. 31, Sep. 30, June 30, (Dollars in thousands, except per share data) 2021 2021 2020 2020 2020 Net income (a) 50,888$ 47,315$ 48,312$ 41,477$ 37,393$ Average total shareholders' equity 2,263,687 2,272,749 2,256,062 2,230,422 2,185,865 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (60,929) (63,529) (66,195) (69,169) (72,086) MSR's (13,310) (12,749) (12,186) (11,274) (10,254) Average tangible equity (b) 1,251,677 1,258,700 1,239,910 1,212,208 1,165,754 Total shareholders' equity 2,269,507 2,258,942 2,282,070 2,247,815 2,221,019 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (59,391) (61,984) (64,552) (67,419) (70,325) MSR's (14,142) (13,156) (12,810) (12,011) (11,250) Ending tangible equity (c) 1,258,203 1,246,031 1,266,937 1,230,614 1,201,673 Total assets 16,037,919 16,175,071 15,973,134 15,925,647 15,870,890 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (59,391) (61,984) (64,552) (67,419) (70,325) MSR's (14,142) (13,156) (12,810) (12,011) (11,250) Ending tangible assets (d) 15,026,615 15,162,160 14,958,001 14,908,446 14,851,544 Risk-weighted assets (e) 11,318,590 11,304,012 11,219,114 11,119,560 11,034,570 Total average assets 16,215,469 16,042,654 16,030,986 15,842,010 15,710,204 Less: Goodwill (937,771) (937,771) (937,771) (937,771) (937,771) Other intangibles (60,929) (63,529) (66,195) (69,169) (72,086) MSR's (13,310) (12,749) (12,186) (11,274) (10,254) Average tangible assets (f) 15,203,459$ 15,028,605$ 15,014,834$ 14,823,796$ 14,690,093$ Ending shares outstanding (g) 96,199,509 97,517,693 98,021,929 97,999,763 98,018,858 Ratios Return on average tangible shareholders' equity (a)/(b) 16.31% 15.24% 15.50% 13.61% 12.90% Ending tangible equity as a percent of: Ending tangible assets (c)/(d) 8.37% 8.22% 8.47% 8.25% 8.09% Risk-weighted assets (c)/(e) 11.12% 11.02% 11.29% 11.07% 10.89% Average tangible equity as a percent of average tangible assets (b)/(f) 8.23% 8.38% 8.26% 8.18% 7.94% Tangible book value per share (c)/(g) 13.08$ 12.78$ 12.93$ 12.56$ 12.26$ Three months ended

 
Appendix: Non-GAAP to GAAP Reconciliation 27 Additional non-GAAP measures 4Q20 3Q20 2Q20 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 114,026$ 114,026$ 113,876$ 113,876$ 118,473$ 118,473$ 112,180$ 112,180$ 111,576$ 111,576$ Provision for credit losses-loans and leases (j) (4,756) (4,756) 3,450 3,450 13,758 13,758 15,299 15,299 17,859 17,859 Provision for credit losses-unfunded commitments (j) 517 517 538 538 (2,250) (2,250) (1,925) (1,925) 2,370 2,370 Noninterest income 42,987 42,987 40,322 40,322 61,515 61,515 49,499 49,499 42,725 42,725 less: gains (losses) on sale of investment securities (104) (54) 196 20 128 less: gains from the redemption of Visa B shares - - 13,397 - - less: other - 193 (157) - - Total noninterest income (g) 42,987 43,091 40,322 40,183 61,515 48,079 49,499 49,479 42,725 42,597 Noninterest expense 99,643 99,643 92,506 92,506 114,798 114,798 97,511 97,511 88,689 88,689 less: severance and merger-related expenses 98 1,261 29 95 35 less: tax credit investments 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 2,772 1,054 2,877 2,126 2,167 Total noninterest expense (e) 99,643 91,792 92,506 89,983 114,798 94,564 97,511 95,290 88,689 86,487 Income before income taxes (i) 61,609 69,564 57,704 60,088 53,682 60,480 50,794 52,995 45,383 47,457 Income tax expense 10,721 10,721 10,389 10,389 5,370 5,370 9,317 9,317 7,990 7,990 plus: tax effect of adjustments 913 501 1,428 462 436 plus: after-tax impact of tax credit investments @ 21% 1,671 164 4,005 Total income tax expense (h) 10,721 13,305 10,389 11,054 5,370 10,803 9,317 9,779 7,990 8,426 Net income (a) 50,888$ 56,259$ 47,315$ 49,034$ 48,312$ 49,677$ 41,477$ 43,216$ 37,393$ 39,031$ Average diluted shares (b) 97,010 97,010 97,728 97,728 98,021 98,021 98,009 98,009 97,989 97,989 Average assets (c) 16,215,469 16,215,469 16,042,654 16,042,654 16,030,986 16,030,986 15,842,010 15,842,010 15,710,204 15,710,204 Average shareholders' equity 2,263,687 2,263,687 2,272,749 2,272,749 2,256,062 2,256,062 2,230,422 2,230,422 2,185,865 2,185,865 Less: Goodwill and other intangibles (1,012,010) (1,012,010) (1,014,049) (1,014,049) (1,016,152) (1,016,152) (1,018,214) (1,018,214) (1,020,111) (1,020,111) Average tangible equity (d) 1,251,677 1,251,677 1,258,700 1,258,700 1,239,910 1,239,910 1,212,208 1,212,208 1,165,754 1,165,754 Ratios Net earnings per share - diluted (a)/(b) 0.52$ 0.58$ 0.48$ 0.50$ 0.49$ 0.51$ 0.42$ 0.44$ 0.38$ 0.40$ Return on average assets - (a)/(c) 1.26% 1.39% 1.20% 1.24% 1.20% 1.23% 1.04% 1.09% 0.96% 1.00% Pre-tax, pre-provision return on average assets - ((a)+(j)+(h))/(c) 1.42% 1.62% 1.56% 1.62% 1.62% 1.79% 1.61% 1.67% 1.68% 1.73% Return on average tangible shareholders' equity - (a)/(d) 16.31% 18.03% 15.24% 15.80% 15.50% 15.94% 13.61% 14.18% 12.90% 13.47% Efficiency ratio - (e)/((f)+(g)) 63.5% 58.4% 60.0% 58.4% 63.8% 56.8% 60.3% 58.9% 57.5% 56.1% Effective tax rate - (h)/(i) 17.4% 19.1% 18.0% 18.4% 10.0% 17.9% 18.3% 18.5% 17.6% 17.8% (Dollars in thousands, except per share data) 2Q21 1Q21

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