FFBC 8-K
First Financial Bancorp /Oh/ (FFBC)
8-K
2022-04-21
For: 2022-04-21
View Original
Added on
April 07, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2022
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. employer identification number) | |||||||||||||||
| (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):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 21, 2022, First Financial Bancorp. (the "Company") issued its earnings press release that included its results of operations and financial condition for the first three months of 2022. A copy of the earnings press release is attached as Exhibit 99.1.
The Company also provided electronic presentation slides that will be used in connection with the earnings conference call. A copy of the electronic presentation slides is included in this Report as Exhibit 99.2 and will be available on the Company's website, www.bankatfirst.com.
The information set forth in this Current Report on Form 8-K (including the information in Exhibits 99.1 and 99.2 attached hereto) is being furnished to the Securities and Exchange Commission and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") , or otherwise subject to the liabilities under the Exchange Act. Such information shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
The following exhibits shall not be deemed to be "filed" for purposes of the Exchange Act:
Exhibit No. Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FIRST FINANCIAL BANCORP.
| By: /s/ James M. Anderson | ||||||||
| James M. Anderson | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
| Date: | April 21, 2022 | |||||||
Exhibit 99.1
First Financial Bancorp Announces First Quarter 2022 Financial Results
•Earnings per diluted share of $0.44; $0.46 on an adjusted(1) basis
•Return on average assets of 1.03%; 1.09% on an adjusted(1) basis
•Net interest margin on FTE basis of 3.17%; 12 bp increase excluding loan fees and accretion
•Net charge-offs declined 69.3%; Provision recapture of $5.8 million
Cincinnati, Ohio - April 21, 2022. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three months ended March 31, 2022.
For the three months ended March 31, 2022, the Company reported net income of $41.3 million, or $0.44 per diluted common share. These results compare to net income of $46.9 million, or $0.50 per diluted common share, for the fourth quarter of 2021 and $47.3 million, or $0.48 per diluted common share, for the first quarter of 2021.
Return on average assets for the first quarter of 2022 was 1.03% while return on average tangible common equity was 14.93%(1). These compare to returns on average assets of 1.16% and 1.20%, and returns on average tangible common equity of 15.11%(1) and 15.24%(1), in the fourth quarter of 2021 and the first quarter of 2021, respectively.
First quarter 2022 highlights include:
•Loan balances flat when compared to linked quarter2, excluding impact of PPP
◦Loan balances decreased $46.7 million compared to the linked quarter; PPP loan balances decreased $34.4 million
•Net interest margin of 3.17% on a fully tax-equivalent basis(1), exceeded expectations
◦6 basis point decrease to 3.17% from 3.23% in the linked quarter driven by PPP forgiveness and lower loan fees, which offset increase in asset yields during the period
◦12 basis point increase excluding loan fees and accretion
•Noninterest income of $41.3 million, or $41.5 million as adjusted(1)
◦Leasing business income of $6.1 million
◦Wealth management fees remained strong at $6.1 million
◦Foreign exchange income of $10.2 million; decline from record fourth quarter
◦Mortgage banking revenue declined $2.6 million, or 40.4% from fourth quarter
•Noninterest expenses of $102.8 million, or $100.0 million as adjusted(1)
◦Adjustments(1) include:
▪$0.3 million of acquisition related costs
▪$2.5 million of other costs not expected to recur such as severance and branch consolidation costs
◦Increase in expenses driven by $8.6 million of Summit expenses, higher healthcare costs and elevated payroll taxes
◦Efficiency ratio of 69.6%; 67.7% as adjusted(1)
________________________________________________________________________________________
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
(2) The consolidated balance sheets at March 31, 2022 and December 31, 2021 include assets acquired and liabilities assumed in the Summit Financial transaction. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available.
•Total Allowance for Credit Losses of $137.3 million; Total quarterly provision recapture of $5.8 million
◦Loans and leases - ACL of $124.1 million, 1.34% of total loans
◦Unfunded Commitments - ACL of $13.2 million
◦Provision recapture driven by strong credit quality
◦Net charge-offs declined 69.3% to 0.10% of average loans and leases
•Regulatory capital ratios remain in excess of internal targets:
◦Total capital ratio of 13.97%
◦Tier 1 common equity increased 3 basis points to 10.87%
◦Tangible common equity of 6.95%(1); decrease from linked quarter driven by decline in AOCI
◦Tangible book value per share of $10.97(1)
Archie Brown, President and Chief Executive Officer, commented, “We are pleased to announce another solid quarter of financial results which were in line with expectations. While we encountered some challenges related to mortgage banking and the wind down of PPP, the first quarter was a good start to what we expect will be a very strong year for First Financial.”
Mr. Brown continued, “First quarter results included adjusted(1) earnings per share of $0.46, return on assets of 1.09% and return on tangible common equity of 15.75%. These results were driven by provision recapture of $5.8 million, resulting from strong credit quality trends and stable economic conditions, and prudent expense management."
Mr. Brown added, “Improvement in net interest margin highlighted the quarter, with basic net interest margin increasing 12 basis points. The margin benefited from the Fed rate hike and higher asset yields, which we expect to increase further as the year progresses given our asset sensitive balance sheet. In addition, credit quality trends remain excellent, evidenced by stable classified asset levels, lower net charge-offs and provision recapture."
Mr. Brown further stated, "We were also pleased with our ability to diligently manage expenses, which were in line with our expectations despite elevated heathcare costs. First quarter fee income was lower than we anticipated as rising rates negatively impacted mortgage banking revenue. While foreign exchange declined from fourth quarter levels, Bannockburn's income can vary from quarter to quarter, and we expect them to rebound in the near term."
On loan growth, Mr. Brown remarked, "Loan growth was muted in the first quarter as originations were slowed by the peak of Omicron in January and higher payoffs continued as many borrowers sold their business or underlying assets. Loan pipelines are strengthening and we are optimistic about improving loan trends as we move further into the year."
Regarding the Summit acquisition, Mr. Brown commented, "The integration of Summit continues to go as expected. Its first quarter financial performance was in line with our initial expectations, and the cultural fit has proven to be as we had hoped. Given the impact of acquisition accounting, our expectation remains that Summit's contributions will be neutral to overall 2022 financial results, and we remain bullish on the the future success of the Company."
Mr. Brown concluded, “Our first quarter results have laid a strong foundation and we believe our asset sensitive balance sheet is well-positioned for the rising rates that are expected over the course of 2022. We have made strategic efforts to diversify our product offerings in recent years, and we believe those efforts position us to deliver the industry leading services to our clients and returns our shareholders have come to expect.”
Full detail of the Company’s first quarter 2022 performance is provided in the accompanying financial statements and slide presentation.
Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, April 22, 2022 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (844) 200-6205 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 773559. 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 565117. The recording will be available until April 29, 2022. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.
Press Release and Additional Information on Website
This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company’s results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
Forward-Looking Statements
Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.
As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:
•economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business;
•future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
•the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
•Management’s ability to effectively execute its business plans;
•mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
•the possibility that any of the anticipated benefits of the Company’s acquisitions will not be realized or will not be realized within the expected time period;
•the effect of changes in accounting policies and practices;
•changes in consumer spending, borrowing and saving and changes in unemployment;
•changes in customers’ performance and creditworthiness;
•the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
•current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
•the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
•our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
•financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
•the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
•the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
•a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
•the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
•our ability to develop and execute effective business plans and strategies.
Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2021, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2022, the Company had $16.0 billion in assets, $9.2 billion in loans, $12.8 billion in deposits and $2.1 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 $3.3 billion in assets under management as of March 31, 2022. The Company operated 135 full service banking centers as of March 31, 2022, 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
Selected Financial Information
March 31, 2022
(unaudited)
| Contents | Page | ||||
| Consolidated Financial Highlights | 2 | ||||
| Consolidated Quarterly Statements of Income | 3 | ||||
| Consolidated Statements of Condition | 4 | ||||
| Average Consolidated Statements of Condition | 5 | ||||
| Net Interest Margin Rate / Volume Analysis | 6-7 | ||||
| Credit Quality | 8 | ||||
| Capital Adequacy | 9 | ||||
| FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended, | |||||||||||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | June 30, | Mar. 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||
| RESULTS OF OPERATIONS | |||||||||||||||||||||||||||||
| Net income | $ | 41,301 | $ | 46,945 | $ | 60,012 | $ | 50,888 | $ | 47,315 | |||||||||||||||||||
| Net earnings per share - basic | $ | 0.44 | $ | 0.51 | $ | 0.64 | $ | 0.53 | $ | 0.49 | |||||||||||||||||||
| Net earnings per share - diluted | $ | 0.44 | $ | 0.50 | $ | 0.63 | $ | 0.52 | $ | 0.48 | |||||||||||||||||||
| Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | |||||||||||||||||||
| KEY FINANCIAL RATIOS | |||||||||||||||||||||||||||||
| Return on average assets | 1.03 | % | 1.16 | % | 1.49 | % | 1.26 | % | 1.20 | % | |||||||||||||||||||
| Return on average shareholders' equity | 7.53 | % | 8.31 | % | 10.53 | % | 9.02 | % | 8.44 | % | |||||||||||||||||||
Return on average tangible shareholders' equity (1) | 14.93 | % | 15.11 | % | 19.03 | % | 16.31 | % | 15.24 | % | |||||||||||||||||||
| Net interest margin | 3.12 | % | 3.19 | % | 3.28 | % | 3.27 | % | 3.35 | % | |||||||||||||||||||
Net interest margin (fully tax equivalent) (1)(2) | 3.17 | % | 3.23 | % | 3.32 | % | 3.31 | % | 3.40 | % | |||||||||||||||||||
| Ending shareholders' equity as a percent of ending assets | 13.35 | % | 13.83 | % | 14.01 | % | 14.15 | % | 13.97 | % | |||||||||||||||||||
| Ending tangible shareholders' equity as a percent of: | |||||||||||||||||||||||||||||
Ending tangible assets (1) | 6.95 | % | 7.58 | % | 8.21 | % | 8.37 | % | 8.22 | % | |||||||||||||||||||
Risk-weighted assets (1) | 8.85 | % | 9.91 | % | 10.76 | % | 11.12 | % | 11.02 | % | |||||||||||||||||||
| Average shareholders' equity as a percent of average assets | 13.75 | % | 13.98 | % | 14.14 | % | 13.96 | % | 14.17 | % | |||||||||||||||||||
| Average tangible shareholders' equity as a percent of | |||||||||||||||||||||||||||||
average tangible assets (1) | 7.44 | % | 8.20 | % | 8.35 | % | 8.23 | % | 8.38 | % | |||||||||||||||||||
| Book value per share | $ | 22.63 | $ | 23.99 | $ | 23.85 | $ | 23.59 | $ | 23.16 | |||||||||||||||||||
Tangible book value per share (1) | $ | 10.97 | $ | 12.26 | $ | 13.09 | $ | 13.08 | $ | 12.78 | |||||||||||||||||||
Common equity tier 1 ratio (3) | 10.87 | % | 10.84 | % | 11.54 | % | 11.78 | % | 11.81 | % | |||||||||||||||||||
Tier 1 ratio (3) | 11.24 | % | 11.22 | % | 11.92 | % | 12.16 | % | 12.19 | % | |||||||||||||||||||
Total capital ratio (3) | 13.97 | % | 14.10 | % | 14.97 | % | 15.31 | % | 15.41 | % | |||||||||||||||||||
Leverage ratio (3) | 8.64 | % | 8.70 | % | 9.05 | % | 9.14 | % | 9.34 | % | |||||||||||||||||||
| AVERAGE BALANCE SHEET ITEMS | |||||||||||||||||||||||||||||
Loans (4) | $ | 9,266,774 | $ | 9,283,227 | $ | 9,502,750 | $ | 9,831,965 | $ | 9,951,855 | |||||||||||||||||||
| Investment securities | 4,308,059 | 4,343,513 | 4,189,253 | 4,130,207 | 3,782,993 | ||||||||||||||||||||||||
| Interest-bearing deposits with other banks | 234,687 | 166,904 | 32,400 | 45,593 | 46,912 | ||||||||||||||||||||||||
| Total earning assets | $ | 13,809,520 | $ | 13,793,644 | $ | 13,724,403 | $ | 14,007,765 | $ | 13,781,760 | |||||||||||||||||||
| Total assets | $ | 16,184,919 | $ | 16,036,417 | $ | 15,995,808 | $ | 16,215,469 | $ | 16,042,654 | |||||||||||||||||||
| Noninterest-bearing deposits | $ | 4,160,175 | $ | 4,191,457 | $ | 3,981,404 | $ | 4,003,626 | $ | 3,840,046 | |||||||||||||||||||
| Interest-bearing deposits | 8,623,800 | 8,693,792 | 8,685,949 | 8,707,553 | 8,531,822 | ||||||||||||||||||||||||
| Total deposits | $ | 12,783,975 | $ | 12,885,249 | $ | 12,667,353 | $ | 12,711,179 | $ | 12,371,868 | |||||||||||||||||||
| Borrowings | $ | 701,287 | $ | 396,743 | $ | 562,964 | $ | 749,114 | $ | 886,379 | |||||||||||||||||||
| Shareholders' equity | $ | 2,225,495 | $ | 2,241,820 | $ | 2,261,293 | $ | 2,263,687 | $ | 2,272,749 | |||||||||||||||||||
| CREDIT QUALITY RATIOS | |||||||||||||||||||||||||||||
| Allowance to ending loans | 1.34 | % | 1.42 | % | 1.59 | % | 1.68 | % | 1.71 | % | |||||||||||||||||||
| Allowance to nonaccrual loans | 273.09 | % | 272.76 | % | 225.73 | % | 184.77 | % | 199.33 | % | |||||||||||||||||||
| Allowance to nonperforming loans | 231.98 | % | 219.96 | % | 192.35 | % | 162.12 | % | 175.44 | % | |||||||||||||||||||
| Nonperforming loans to total loans | 0.58 | % | 0.65 | % | 0.83 | % | 1.03 | % | 0.97 | % | |||||||||||||||||||
| Nonaccrual loans to total loans | 0.49 | % | 0.52 | % | 0.70 | % | 0.91 | % | 0.86 | % | |||||||||||||||||||
| Nonperforming assets to ending loans, plus OREO | 0.58 | % | 0.65 | % | 0.83 | % | 1.04 | % | 0.98 | % | |||||||||||||||||||
| Nonperforming assets to total assets | 0.33 | % | 0.37 | % | 0.49 | % | 0.62 | % | 0.60 | % | |||||||||||||||||||
| Classified assets to total assets | 0.67 | % | 0.64 | % | 1.04 | % | 1.14 | % | 1.22 | % | |||||||||||||||||||
| Net charge-offs to average loans (annualized) | 0.10 | % | 0.32 | % | 0.10 | % | 0.23 | % | 0.38 | % | |||||||||||||||||||
(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) March 31, 2022 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
2
| FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||
| First | Fourth | Third | Second | First | Full | ||||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||||||||
| Loans and leases, including fees | $ | 87,182 | $ | 92,682 | $ | 96,428 | $ | 97,494 | $ | 98,931 | $ | 385,535 | |||||||||||||||||||||||
| Investment securities | |||||||||||||||||||||||||||||||||||
| Taxable | 22,096 | 20,993 | 20,088 | 19,524 | 18,607 | 79,212 | |||||||||||||||||||||||||||||
| Tax-exempt | 4,431 | 4,127 | 4,282 | 4,871 | 5,043 | 18,323 | |||||||||||||||||||||||||||||
| Total investment securities interest | 26,527 | 25,120 | 24,370 | 24,395 | 23,650 | 97,535 | |||||||||||||||||||||||||||||
| Other earning assets | 121 | 71 | 23 | 25 | 28 | 147 | |||||||||||||||||||||||||||||
| Total interest income | 113,830 | 117,873 | 120,821 | 121,914 | 122,609 | 483,217 | |||||||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||||||||
| Deposits | 2,623 | 3,089 | 3,320 | 3,693 | 4,333 | 14,435 | |||||||||||||||||||||||||||||
| Short-term borrowings | 317 | 10 | 68 | 53 | 67 | 198 | |||||||||||||||||||||||||||||
| Long-term borrowings | 4,544 | 3,968 | 4,023 | 4,142 | 4,333 | 16,466 | |||||||||||||||||||||||||||||
| Total interest expense | 7,484 | 7,067 | 7,411 | 7,888 | 8,733 | 31,099 | |||||||||||||||||||||||||||||
| Net interest income | 106,346 | 110,806 | 113,410 | 114,026 | 113,876 | 452,118 | |||||||||||||||||||||||||||||
| Provision for credit losses-loans and leases | (5,589) | (9,525) | (8,193) | (4,756) | 3,450 | (19,024) | |||||||||||||||||||||||||||||
| Provision for credit losses-unfunded commitments | (226) | 1,799 | (1,951) | 517 | 538 | 903 | |||||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 112,161 | 118,532 | 123,554 | 118,265 | 109,888 | 470,239 | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 7,729 | 8,645 | 8,548 | 7,537 | 7,146 | 31,876 | |||||||||||||||||||||||||||||
| Trust and wealth management fees | 6,060 | 6,038 | 5,896 | 6,216 | 5,630 | 23,780 | |||||||||||||||||||||||||||||
| Bankcard income | 3,337 | 3,602 | 3,838 | 3,732 | 3,128 | 14,300 | |||||||||||||||||||||||||||||
| Client derivative fees | 799 | 2,303 | 2,273 | 1,795 | 1,556 | 7,927 | |||||||||||||||||||||||||||||
| Foreign exchange income | 10,151 | 12,808 | 9,191 | 12,037 | 10,757 | 44,793 | |||||||||||||||||||||||||||||
| Leasing business income | 6,076 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
| Net gains from sales of loans | 3,872 | 6,492 | 8,586 | 8,489 | 9,454 | 33,021 | |||||||||||||||||||||||||||||
| Net gain (loss) on sale of investment securities | 3 | (14) | (314) | (265) | (166) | (759) | |||||||||||||||||||||||||||||
| Net gain (loss) on equity securities | (199) | 321 | 108 | 161 | 112 | 702 | |||||||||||||||||||||||||||||
| Other | 3,465 | 5,465 | 4,411 | 3,285 | 2,705 | 15,866 | |||||||||||||||||||||||||||||
| Total noninterest income | 41,293 | 45,660 | 42,537 | 42,987 | 40,322 | 171,506 | |||||||||||||||||||||||||||||
| Noninterest expenses | |||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 63,947 | 62,170 | 61,717 | 60,784 | 61,253 | 245,924 | |||||||||||||||||||||||||||||
| Net occupancy | 5,746 | 5,332 | 5,571 | 5,535 | 5,704 | 22,142 | |||||||||||||||||||||||||||||
| Furniture and equipment | 3,567 | 3,161 | 3,318 | 3,371 | 3,969 | 13,819 | |||||||||||||||||||||||||||||
| Data processing | 8,264 | 8,261 | 7,951 | 7,864 | 7,287 | 31,363 | |||||||||||||||||||||||||||||
| Marketing | 1,700 | 2,152 | 2,435 | 2,035 | 1,361 | 7,983 | |||||||||||||||||||||||||||||
| Communication | 666 | 677 | 669 | 746 | 838 | 2,930 | |||||||||||||||||||||||||||||
| Professional services | 2,159 | 5,998 | 2,199 | 2,029 | 1,450 | 11,676 | |||||||||||||||||||||||||||||
| State intangible tax | 1,131 | 651 | 1,202 | 1,201 | 1,202 | 4,256 | |||||||||||||||||||||||||||||
| FDIC assessments | 1,459 | 1,453 | 1,466 | 1,362 | 1,349 | 5,630 | |||||||||||||||||||||||||||||
| Intangible amortization | 2,914 | 2,401 | 2,479 | 2,480 | 2,479 | 9,839 | |||||||||||||||||||||||||||||
| Leasing business expense | 3,869 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
| Other | 7,383 | 17,349 | 10,051 | 12,236 | 5,614 | 45,250 | |||||||||||||||||||||||||||||
| Total noninterest expenses | 102,805 | 109,605 | 99,058 | 99,643 | 92,506 | 400,812 | |||||||||||||||||||||||||||||
| Income before income taxes | 50,649 | 54,587 | 67,033 | 61,609 | 57,704 | 240,933 | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | 9,348 | 7,642 | 7,021 | 10,721 | 10,389 | 35,773 | |||||||||||||||||||||||||||||
| Net income | $ | 41,301 | $ | 46,945 | $ | 60,012 | $ | 50,888 | $ | 47,315 | $ | 205,160 | |||||||||||||||||||||||
| ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||
| Net earnings per share - basic | $ | 0.44 | $ | 0.51 | $ | 0.64 | $ | 0.53 | $ | 0.49 | $ | 2.16 | |||||||||||||||||||||||
| Net earnings per share - diluted | $ | 0.44 | $ | 0.50 | $ | 0.63 | $ | 0.52 | $ | 0.48 | $ | 2.14 | |||||||||||||||||||||||
| Dividends declared per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 | |||||||||||||||||||||||
| Return on average assets | 1.03 | % | 1.16 | % | 1.49 | % | 1.26 | % | 1.20 | % | 1.28 | % | |||||||||||||||||||||||
| Return on average shareholders' equity | 7.53 | % | 8.31 | % | 10.53 | % | 9.02 | % | 8.44 | % | 9.08 | % | |||||||||||||||||||||||
| Interest income | $ | 113,830 | $ | 117,873 | $ | 120,821 | $ | 121,914 | $ | 122,609 | $ | 483,217 | |||||||||||||||||||||||
| Tax equivalent adjustment | 1,467 | 1,386 | 1,434 | 1,619 | 1,652 | 6,091 | |||||||||||||||||||||||||||||
| Interest income - tax equivalent | 115,297 | 119,259 | 122,255 | 123,533 | 124,261 | 489,308 | |||||||||||||||||||||||||||||
| Interest expense | 7,484 | 7,067 | 7,411 | 7,888 | 8,733 | 31,099 | |||||||||||||||||||||||||||||
| Net interest income - tax equivalent | $ | 107,813 | $ | 112,192 | $ | 114,844 | $ | 115,645 | $ | 115,528 | $ | 458,209 | |||||||||||||||||||||||
| Net interest margin | 3.12 | % | 3.19 | % | 3.28 | % | 3.27 | % | 3.35 | % | 3.27 | % | |||||||||||||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.17 | % | 3.23 | % | 3.32 | % | 3.31 | % | 3.40 | % | 3.31 | % | |||||||||||||||||||||||
| Full-time equivalent employees | 2,050 (2) | 1,994 | 2,026 | 2,053 | 2,063 | ||||||||||||||||||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. | |||||||||||||||||||||||||||||||||||
(2) Includes 65 FTE from the Summit acquisition. | |||||||||||||||||||||||||||||||||||
3
| FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | June 30, | Mar. 31, | % Change | % Change | |||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | Linked Qtr. | Comp Qtr. | |||||||||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 230,428 | $ | 220,031 | $ | 209,748 | $ | 206,918 | $ | 210,191 | 4.7 | % | 9.6 | % | |||||||||||||||||||||||||||
| Interest-bearing deposits with other banks | 227,147 | 214,811 | 29,799 | 38,610 | 19,180 | 5.7 | % | N/M | |||||||||||||||||||||||||||||||||
| Investment securities available-for-sale | 3,957,882 | 4,207,846 | 4,114,094 | 3,955,839 | 3,753,763 | (5.9) | % | 5.4 | % | ||||||||||||||||||||||||||||||||
| Investment securities held-to-maturity | 92,597 | 98,420 | 103,886 | 112,456 | 121,945 | (5.9) | % | (24.1) | % | ||||||||||||||||||||||||||||||||
| Other investments | 114,563 | 102,971 | 97,831 | 129,432 | 131,814 | 11.3 | % | (13.1) | % | ||||||||||||||||||||||||||||||||
| Loans held for sale | 12,670 | 29,482 | 33,835 | 31,546 | 34,590 | (57.0) | % | (63.4) | % | ||||||||||||||||||||||||||||||||
| Loans and leases | |||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 2,800,209 | 2,720,028 | 2,602,848 | 2,701,203 | 3,044,825 | 2.9 | % | (8.0) | % | ||||||||||||||||||||||||||||||||
| Lease financing | 125,867 | 109,624 | 67,855 | 68,229 | 66,574 | 14.8 | % | 89.1 | % | ||||||||||||||||||||||||||||||||
| Construction real estate | 479,744 | 455,894 | 477,004 | 630,329 | 642,709 | 5.2 | % | (25.4) | % | ||||||||||||||||||||||||||||||||
| Commercial real estate | 4,031,484 | 4,226,614 | 4,438,374 | 4,332,561 | 4,396,582 | (4.6) | % | (8.3) | % | ||||||||||||||||||||||||||||||||
| Residential real estate | 913,838 | 896,069 | 922,492 | 932,112 | 946,522 | 2.0 | % | (3.5) | % | ||||||||||||||||||||||||||||||||
| Home equity | 707,973 | 708,399 | 709,050 | 711,756 | 709,667 | (0.1) | % | (0.2) | % | ||||||||||||||||||||||||||||||||
| Installment | 132,197 | 119,454 | 96,077 | 89,143 | 82,421 | 10.7 | % | 60.4 | % | ||||||||||||||||||||||||||||||||
| Credit card | 50,305 | 52,217 | 47,231 | 46,177 | 44,669 | (3.7) | % | 12.6 | % | ||||||||||||||||||||||||||||||||
| Total loans | 9,241,617 | 9,288,299 | 9,360,931 | 9,511,510 | 9,933,969 | (0.5) | % | (7.0) | % | ||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (124,130) | (131,992) | (148,903) | (159,590) | (169,923) | (6.0) | % | (26.9) | % | ||||||||||||||||||||||||||||||||
| Net loans | 9,117,487 | 9,156,307 | 9,212,028 | 9,351,920 | 9,764,046 | (0.4) | % | (6.6) | % | ||||||||||||||||||||||||||||||||
| Premises and equipment | 190,975 | 193,040 | 192,580 | 192,238 | 204,537 | (1.1) | % | (6.6) | % | ||||||||||||||||||||||||||||||||
| Operating leases | 87,432 | 73,857 | 0 | 0 | 0 | 18.4 | % | 100.0 | % | ||||||||||||||||||||||||||||||||
| Goodwill | 999,959 | 1,000,749 | 937,771 | 937,771 | 937,771 | (0.1) | % | 6.6 | % | ||||||||||||||||||||||||||||||||
| Other intangibles | 85,891 | 88,898 | 56,811 | 59,391 | 61,984 | (3.4) | % | 38.6 | % | ||||||||||||||||||||||||||||||||
| Accrued interest and other assets | 892,119 | 942,729 | 968,210 | 1,021,798 | 935,250 | (5.4) | % | (4.6) | % | ||||||||||||||||||||||||||||||||
| Total Assets | $ | 16,009,150 | $ | 16,329,141 | $ | 15,956,593 | $ | 16,037,919 | $ | 16,175,071 | (2.0) | % | (1.0) | % | |||||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 3,246,646 | $ | 3,198,745 | $ | 2,916,860 | $ | 2,963,151 | $ | 2,914,761 | 1.5 | % | 11.4 | % | |||||||||||||||||||||||||||
| Savings | 4,188,867 | 4,157,374 | 4,223,905 | 4,093,229 | 4,006,181 | 0.8 | % | 4.6 | % | ||||||||||||||||||||||||||||||||
| Time | 1,121,966 | 1,330,263 | 1,517,419 | 1,548,109 | 1,731,757 | (15.7) | % | (35.2) | % | ||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 8,557,479 | 8,686,382 | 8,658,184 | 8,604,489 | 8,652,699 | (1.5) | % | (1.1) | % | ||||||||||||||||||||||||||||||||
| Noninterest-bearing | 4,261,429 | 4,185,572 | 4,019,197 | 3,901,691 | 3,995,370 | 1.8 | % | 6.7 | % | ||||||||||||||||||||||||||||||||
| Total deposits | 12,818,908 | 12,871,954 | 12,677,381 | 12,506,180 | 12,648,069 | (0.4) | % | 1.4 | % | ||||||||||||||||||||||||||||||||
| Federal funds purchased and securities sold | |||||||||||||||||||||||||||||||||||||||||
| under agreements to repurchase | 0 | 51,203 | 81,850 | 255,791 | 181,387 | (100.0) | % | (100.0) | % | ||||||||||||||||||||||||||||||||
| FHLB short-term borrowings | 185,000 | 225,000 | 107,000 | 217,000 | 0 | (17.8) | % | 100.0 | % | ||||||||||||||||||||||||||||||||
| Other | 0 | 20,000 | 0 | 0 | 0 | (100.0) | % | N/M | |||||||||||||||||||||||||||||||||
| Total short-term borrowings | 185,000 | 296,203 | 188,850 | 472,791 | 181,387 | (37.5) | % | 2.0 | % | ||||||||||||||||||||||||||||||||
| Long-term debt | 379,840 | 409,832 | 313,230 | 313,039 | 583,722 | (7.3) | % | (34.9) | % | ||||||||||||||||||||||||||||||||
| Total borrowed funds | 564,840 | 706,035 | 502,080 | 785,830 | 765,109 | (20.0) | % | (26.2) | % | ||||||||||||||||||||||||||||||||
| Accrued interest and other liabilities | 487,957 | 492,210 | 540,962 | 476,402 | 502,951 | (0.9) | % | (3.0) | % | ||||||||||||||||||||||||||||||||
| Total Liabilities | 13,871,705 | 14,070,199 | 13,720,423 | 13,768,412 | 13,916,129 | (1.4) | % | (0.3) | % | ||||||||||||||||||||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||||||||
| Common stock | 1,634,903 | 1,640,358 | 1,637,065 | 1,635,470 | 1,633,137 | (0.3) | % | 0.1 | % | ||||||||||||||||||||||||||||||||
| Retained earnings | 857,178 | 837,473 | 812,082 | 773,857 | 745,220 | 2.4 | % | 15.0 | % | ||||||||||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) | (142,477) | (433) | 14,230 | 30,735 | 18,101 | N/M | N/M | ||||||||||||||||||||||||||||||||||
| Treasury stock, at cost | (212,159) | (218,456) | (227,207) | (170,555) | (137,516) | (2.9) | % | 54.3 | % | ||||||||||||||||||||||||||||||||
| Total Shareholders' Equity | 2,137,445 | 2,258,942 | 2,236,170 | 2,269,507 | 2,258,942 | (5.4) | % | (5.4) | % | ||||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 16,009,150 | $ | 16,329,141 | $ | 15,956,593 | $ | 16,037,919 | $ | 16,175,071 | (2.0) | % | (1.0) | % | |||||||||||||||||||||||||||
4
| FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||
| AVERAGE CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Quarterly Averages | |||||||||||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | June 30, | Mar. 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and due from banks | $ | 248,517 | $ | 253,091 | $ | 245,212 | $ | 237,964 | $ | 232,275 | |||||||||||||||||||
| Interest-bearing deposits with other banks | 234,687 | 166,904 | 32,400 | 45,593 | 46,912 | ||||||||||||||||||||||||
| Investment securities | 4,308,059 | 4,343,513 | 4,189,253 | 4,130,207 | 3,782,993 | ||||||||||||||||||||||||
| Loans held for sale | 15,589 | 24,491 | 28,365 | 28,348 | 29,689 | ||||||||||||||||||||||||
| Loans and leases | |||||||||||||||||||||||||||||
| Commercial and industrial | 2,736,613 | 2,552,686 | 2,634,306 | 2,953,185 | 3,029,716 | ||||||||||||||||||||||||
| Lease financing | 115,703 | 67,537 | 67,159 | 66,124 | 70,508 | ||||||||||||||||||||||||
| Construction real estate | 474,278 | 460,588 | 567,091 | 630,351 | 647,655 | ||||||||||||||||||||||||
| Commercial real estate | 4,139,072 | 4,391,328 | 4,413,003 | 4,372,679 | 4,339,349 | ||||||||||||||||||||||||
| Residential real estate | 903,567 | 917,399 | 937,969 | 940,600 | 980,718 | ||||||||||||||||||||||||
| Home equity | 703,714 | 709,954 | 710,794 | 707,409 | 726,134 | ||||||||||||||||||||||||
| Installment | 125,579 | 106,188 | 93,937 | 84,768 | 81,377 | ||||||||||||||||||||||||
| Credit card | 52,659 | 53,056 | 50,126 | 48,501 | 46,709 | ||||||||||||||||||||||||
| Total loans | 9,251,185 | 9,258,736 | 9,474,385 | 9,803,617 | 9,922,166 | ||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Allowance for credit losses | (129,601) | (144,756) | (157,727) | (169,979) | (177,863) | ||||||||||||||||||||||||
| Net loans | 9,121,584 | 9,113,980 | 9,316,658 | 9,633,638 | 9,744,303 | ||||||||||||||||||||||||
| Premises and equipment | 192,832 | 192,941 | 193,775 | 200,558 | 206,628 | ||||||||||||||||||||||||
| Operating leases | 81,907 | 801 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Goodwill | 1,000,238 | 938,453 | 937,771 | 937,771 | 937,771 | ||||||||||||||||||||||||
| Other intangibles | 87,602 | 56,120 | 58,314 | 60,929 | 63,529 | ||||||||||||||||||||||||
| Accrued interest and other assets | 893,904 | 946,123 | 994,060 | 940,461 | 998,554 | ||||||||||||||||||||||||
| Total Assets | $ | 16,184,919 | $ | 16,036,417 | $ | 15,995,808 | $ | 16,215,469 | $ | 16,042,654 | |||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 3,246,919 | $ | 3,069,416 | $ | 2,960,388 | $ | 2,973,930 | $ | 2,948,682 | |||||||||||||||||||
| Savings | 4,145,615 | 4,195,504 | 4,150,610 | 4,096,077 | 3,815,314 | ||||||||||||||||||||||||
| Time | 1,231,266 | 1,428,872 | 1,574,951 | 1,637,546 | 1,767,826 | ||||||||||||||||||||||||
| Total interest-bearing deposits | 8,623,800 | 8,693,792 | 8,685,949 | 8,707,553 | 8,531,822 | ||||||||||||||||||||||||
| Noninterest-bearing | 4,160,175 | 4,191,457 | 3,981,404 | 4,003,626 | 3,840,046 | ||||||||||||||||||||||||
| Total deposits | 12,783,975 | 12,885,249 | 12,667,353 | 12,711,179 | 12,371,868 | ||||||||||||||||||||||||
| Federal funds purchased and securities sold | |||||||||||||||||||||||||||||
| under agreements to repurchase | 45,358 | 79,382 | 186,401 | 194,478 | 184,483 | ||||||||||||||||||||||||
| FHLB short-term borrowings | 257,800 | 2,445 | 63,463 | 40,846 | 67,222 | ||||||||||||||||||||||||
| Other | 12,889 | 654 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Total short-term borrowings | 316,047 | 82,481 | 249,864 | 235,324 | 251,705 | ||||||||||||||||||||||||
| Long-term debt | 385,240 | 314,262 | 313,100 | 513,790 | 634,674 | ||||||||||||||||||||||||
| Total borrowed funds | 701,287 | 396,743 | 562,964 | 749,114 | 886,379 | ||||||||||||||||||||||||
| Accrued interest and other liabilities | 474,162 | 512,605 | 504,198 | 491,489 | 511,658 | ||||||||||||||||||||||||
| Total Liabilities | 13,959,424 | 13,794,597 | 13,734,515 | 13,951,782 | 13,769,905 | ||||||||||||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
| Common stock | 1,638,321 | 1,637,828 | 1,635,833 | 1,633,950 | 1,636,884 | ||||||||||||||||||||||||
| Retained earnings | 841,652 | 822,500 | 783,760 | 754,456 | 726,351 | ||||||||||||||||||||||||
| Accumulated other comprehensive loss | (38,448) | 8,542 | 36,917 | 25,832 | 42,253 | ||||||||||||||||||||||||
| Treasury stock, at cost | (216,030) | (227,050) | (195,217) | (150,551) | (132,739) | ||||||||||||||||||||||||
| Total Shareholders' Equity | 2,225,495 | 2,241,820 | 2,261,293 | 2,263,687 | 2,272,749 | ||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 16,184,919 | $ | 16,036,417 | $ | 15,995,808 | $ | 16,215,469 | $ | 16,042,654 | |||||||||||||||||||
5
| FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET INTEREST MARGIN RATE/VOLUME ANALYSIS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Averages | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance | Interest | Yield | Balance | Interest | Yield | Balance | Interest | Yield | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Earning assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment securities | $ | 4,308,059 | $ | 26,527 | 2.50 | % | $ | 4,343,513 | $ | 25,120 | 2.29 | % | $ | 3,782,993 | $ | 23,650 | 2.54 | % | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with other banks | 234,687 | 121 | 0.21 | % | 166,904 | 71 | 0.17 | % | 46,912 | 28 | 0.24 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Gross loans (1) | 9,266,774 | 87,182 | 3.82 | % | 9,283,227 | 92,682 | 3.96 | % | 9,951,855 | 98,931 | 4.03 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets | 13,809,520 | 113,830 | 3.34 | % | 13,793,644 | 117,873 | 3.39 | % | 13,781,760 | 122,609 | 3.61 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Nonearning assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (129,601) | (144,756) | (177,863) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 248,517 | 253,091 | 232,275 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued interest and other assets | 2,256,483 | 2,134,438 | 2,206,482 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 16,184,919 | $ | 16,036,417 | $ | 16,042,654 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 3,246,919 | $ | 492 | 0.06 | % | $ | 3,069,416 | $ | 461 | 0.06 | % | $ | 2,948,682 | $ | 534 | 0.07 | % | |||||||||||||||||||||||||||||||||||||||||
| Savings | 4,145,615 | 850 | 0.08 | % | 4,195,504 | 901 | 0.09 | % | 3,815,314 | 1,178 | 0.13 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Time | 1,231,266 | 1,281 | 0.42 | % | 1,428,872 | 1,727 | 0.48 | % | 1,767,826 | 2,621 | 0.60 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 8,623,800 | 2,623 | 0.12 | % | 8,693,792 | 3,089 | 0.14 | % | 8,531,822 | 4,333 | 0.21 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 316,047 | 317 | 0.41 | % | 82,481 | 10 | 0.05 | % | 251,705 | 67 | 0.11 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt | 385,240 | 4,544 | 4.78 | % | 314,262 | 3,968 | 5.01 | % | 634,674 | 4,333 | 2.77 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Total borrowed funds | 701,287 | 4,861 | 2.81 | % | 396,743 | 3,978 | 3.98 | % | 886,379 | 4,400 | 2.01 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 9,325,087 | 7,484 | 0.33 | % | 9,090,535 | 7,067 | 0.31 | % | 9,418,201 | 8,733 | 0.38 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 4,160,175 | 4,191,457 | 3,840,046 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 474,162 | 512,605 | 511,658 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 2,225,495 | 2,241,820 | 2,272,749 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities & shareholders' equity | $ | 16,184,919 | $ | 16,036,417 | $ | 16,042,654 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 106,346 | $ | 110,806 | $ | 113,876 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 3.01 | % | 3.08 | % | 3.23 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 3.12 | % | 3.19 | % | 3.35 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax equivalent adjustment | 0.05 | % | 0.04 | % | 0.05 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin (fully tax equivalent) | 3.17 | % | 3.23 | % | 3.40 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Loans held for sale and nonaccrual loans are included in gross loans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6
| FIRST FINANCIAL BANCORP. | ||||||||||||||||||||||||||||||||||||||
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) | ||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Linked Qtr. Income Variance | Comparable Qtr. Income Variance | |||||||||||||||||||||||||||||||||||||
| Rate | Volume | Total | Rate | Volume | Total | |||||||||||||||||||||||||||||||||
| Earning assets | ||||||||||||||||||||||||||||||||||||||
| Investment securities | $ | 2,220 | $ | (813) | $ | 1,407 | $ | (356) | $ | 3,233 | $ | 2,877 | ||||||||||||||||||||||||||
| Interest-bearing deposits with other banks | 17 | 33 | 50 | (4) | 97 | 93 | ||||||||||||||||||||||||||||||||
Gross loans (2) | (3,404) | (2,096) | (5,500) | (5,304) | (6,445) | (11,749) | ||||||||||||||||||||||||||||||||
| Total earning assets | (1,167) | (2,876) | (4,043) | (5,664) | (3,115) | (8,779) | ||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | $ | (386) | $ | (80) | $ | (466) | $ | (1,738) | $ | 28 | $ | (1,710) | ||||||||||||||||||||||||||
| Borrowed funds | ||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 75 | 232 | 307 | 185 | 65 | 250 | ||||||||||||||||||||||||||||||||
| Long-term debt | (179) | 755 | 576 | 3,153 | (2,942) | 211 | ||||||||||||||||||||||||||||||||
| Total borrowed funds | (104) | 987 | 883 | 3,338 | (2,877) | 461 | ||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | (490) | 907 | 417 | 1,600 | (2,849) | (1,249) | ||||||||||||||||||||||||||||||||
Net interest income (1) | $ | (677) | $ | (3,783) | $ | (4,460) | $ | (7,264) | $ | (266) | $ | (7,530) | ||||||||||||||||||||||||||
(1) Not tax equivalent. | ||||||||||||||||||||||||||||||||||||||
(2) Loans held for sale and nonaccrual loans are included in gross loans. | ||||||||||||||||||||||||||||||||||||||
7
| FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||
| CREDIT QUALITY | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | June 30, | Mar. 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSS ACTIVITY | |||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 131,992 | $ | 148,903 | $ | 159,590 | $ | 169,923 | $ | 175,679 | |||||||||||||||||||
| Purchase accounting ACL for PCD | 0 | 17 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Provision for credit losses | (5,589) | (9,525) | (8,193) | (4,756) | 3,450 | ||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||
| Commercial and industrial | 2,845 | 1,364 | 2,617 | 3,729 | 7,910 | ||||||||||||||||||||||||
| Lease financing | 131 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Construction real estate | 0 | 1,496 | 0 | 0 | 2 | ||||||||||||||||||||||||
| Commercial real estate | 0 | 9,150 | 1,030 | 2,041 | 1,250 | ||||||||||||||||||||||||
| Residential real estate | 22 | 6 | 74 | 46 | 1 | ||||||||||||||||||||||||
| Home equity | 21 | 22 | 200 | 240 | 611 | ||||||||||||||||||||||||
| Installment | 177 | 184 | 37 | 77 | 36 | ||||||||||||||||||||||||
| Credit card | 246 | 149 | 230 | 179 | 222 | ||||||||||||||||||||||||
| Total gross charge-offs | 3,442 | 12,371 | 4,188 | 6,312 | 10,032 | ||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||
| Commercial and industrial | 379 | 201 | 869 | 205 | 337 | ||||||||||||||||||||||||
| Lease financing | 33 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Construction real estate | 0 | 0 | 0 | 3 | 0 | ||||||||||||||||||||||||
| Commercial real estate | 222 | 4,292 | 223 | 75 | 195 | ||||||||||||||||||||||||
| Residential real estate | 90 | 74 | 56 | 54 | 44 | ||||||||||||||||||||||||
| Home equity | 265 | 303 | 426 | 317 | 177 | ||||||||||||||||||||||||
| Installment | 21 | 27 | 53 | 37 | 34 | ||||||||||||||||||||||||
| Credit card | 159 | 71 | 67 | 44 | 39 | ||||||||||||||||||||||||
| Total recoveries | 1,169 | 4,968 | 1,694 | 735 | 826 | ||||||||||||||||||||||||
| Total net charge-offs | 2,273 | 7,403 | 2,494 | 5,577 | 9,206 | ||||||||||||||||||||||||
| Ending allowance for credit losses | $ | 124,130 | $ | 131,992 | $ | 148,903 | $ | 159,590 | $ | 169,923 | |||||||||||||||||||
| NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | |||||||||||||||||||||||||||||
| Commercial and industrial | 0.37 | % | 0.18 | % | 0.26 | % | 0.48 | % | 1.01 | % | |||||||||||||||||||
| Lease financing | 0.34 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Construction real estate | 0.00 | % | 1.29 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Commercial real estate | (0.02) | % | 0.44 | % | 0.07 | % | 0.18 | % | 0.10 | % | |||||||||||||||||||
| Residential real estate | (0.03) | % | (0.03) | % | 0.01 | % | 0.00 | % | (0.02) | % | |||||||||||||||||||
| Home equity | (0.14) | % | (0.16) | % | (0.13) | % | (0.04) | % | 0.24 | % | |||||||||||||||||||
| Installment | 0.50 | % | 0.59 | % | (0.07) | % | 0.19 | % | 0.01 | % | |||||||||||||||||||
| Credit card | 0.67 | % | 0.58 | % | 1.29 | % | 1.12 | % | 1.59 | % | |||||||||||||||||||
| Total net charge-offs | 0.10 | % | 0.32 | % | 0.10 | % | 0.23 | % | 0.38 | % | |||||||||||||||||||
| COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | |||||||||||||||||||||||||||||
Nonaccrual loans (1) | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | 14,390 | $ | 17,362 | $ | 15,160 | $ | 27,426 | $ | 24,941 | |||||||||||||||||||
| Lease financing | 249 | 203 | 0 | 16 | 0 | ||||||||||||||||||||||||
| Construction real estate | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Commercial real estate | 19,843 | 19,512 | 38,564 | 45,957 | 44,514 | ||||||||||||||||||||||||
| Residential real estate | 7,432 | 8,305 | 9,416 | 9,480 | 11,359 | ||||||||||||||||||||||||
| Home equity | 3,377 | 2,922 | 2,735 | 3,376 | 4,286 | ||||||||||||||||||||||||
| Installment | 163 | 88 | 91 | 115 | 146 | ||||||||||||||||||||||||
| Nonaccrual loans | 45,454 | 48,392 | 65,966 | 86,370 | 85,246 | ||||||||||||||||||||||||
| Accruing troubled debt restructurings (TDRs) | 8,055 | 11,616 | 11,448 | 12,070 | 11,608 | ||||||||||||||||||||||||
| Total nonperforming loans | 53,509 | 60,008 | 77,414 | 98,440 | 96,854 | ||||||||||||||||||||||||
| Other real estate owned (OREO) | 72 | 98 | 340 | 340 | 854 | ||||||||||||||||||||||||
| Total nonperforming assets | 53,581 | 60,106 | 77,754 | 98,780 | 97,708 | ||||||||||||||||||||||||
| Accruing loans past due 90 days or more | 87 | 137 | 104 | 155 | 92 | ||||||||||||||||||||||||
| Total underperforming assets | $ | 53,668 | $ | 60,243 | $ | 77,858 | $ | 98,935 | $ | 97,800 | |||||||||||||||||||
| Total classified assets | $ | 106,839 | $ | 104,815 | $ | 165,462 | $ | 182,516 | $ | 196,782 | |||||||||||||||||||
| CREDIT QUALITY RATIOS | |||||||||||||||||||||||||||||
| Allowance for credit losses to | |||||||||||||||||||||||||||||
| Nonaccrual loans | 273.09 | % | 272.76 | % | 225.73 | % | 184.77 | % | 199.33 | % | |||||||||||||||||||
| Nonperforming loans | 231.98 | % | 219.96 | % | 192.35 | % | 162.12 | % | 175.44 | % | |||||||||||||||||||
| Total ending loans | 1.34 | % | 1.42 | % | 1.59 | % | 1.68 | % | 1.71 | % | |||||||||||||||||||
| Nonperforming loans to total loans | 0.58 | % | 0.65 | % | 0.83 | % | 1.03 | % | 0.97 | % | |||||||||||||||||||
| Nonaccrual loans to total loans | 0.49 | % | 0.52 | % | 0.70 | % | 0.91 | % | 0.86 | % | |||||||||||||||||||
| Nonperforming assets to | |||||||||||||||||||||||||||||
| Ending loans, plus OREO | 0.58 | % | 0.65 | % | 0.83 | % | 1.04 | % | 0.98 | % | |||||||||||||||||||
| Total assets | 0.33 | % | 0.37 | % | 0.49 | % | 0.62 | % | 0.60 | % | |||||||||||||||||||
| Nonperforming assets, excluding accruing TDRs to | |||||||||||||||||||||||||||||
| Ending loans, plus OREO | 0.49 | % | 0.52 | % | 0.71 | % | 0.91 | % | 0.87 | % | |||||||||||||||||||
| Total assets | 0.28 | % | 0.30 | % | 0.42 | % | 0.54 | % | 0.53 | % | |||||||||||||||||||
| Classified assets to total assets | 0.67 | % | 0.64 | % | 1.04 | % | 1.14 | % | 1.22 | % | |||||||||||||||||||
(1) Nonaccrual loans include nonaccrual TDRs of $16.2 million, $16.0 million, $20.3 million, $21.5 million, and $20.9 million, as of March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively. | |||||||||||||||||||||||||||||
8
| FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||
| CAPITAL ADEQUACY | |||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | June 30, | Mar. 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||
| PER COMMON SHARE | |||||||||||||||||||||||||||||
| Market Price | |||||||||||||||||||||||||||||
| High | $ | 26.73 | $ | 25.79 | $ | 24.06 | $ | 26.02 | $ | 26.40 | |||||||||||||||||||
| Low | $ | 22.92 | $ | 22.89 | $ | 21.48 | $ | 23.35 | $ | 17.62 | |||||||||||||||||||
| Close | $ | 23.05 | $ | 24.38 | $ | 23.41 | $ | 23.63 | $ | 24.00 | |||||||||||||||||||
| Average shares outstanding - basic | 93,383,932 | 92,903,900 | 94,289,097 | 96,123,645 | 96,873,940 | ||||||||||||||||||||||||
| Average shares outstanding - diluted | 94,263,925 | 93,761,909 | 95,143,930 | 97,009,712 | 97,727,527 | ||||||||||||||||||||||||
| Ending shares outstanding | 94,451,496 | 94,149,240 | 93,742,797 | 96,199,509 | 97,517,693 | ||||||||||||||||||||||||
| Total shareholders' equity | $ | 2,137,445 | $ | 2,258,942 | $ | 2,236,170 | $ | 2,269,507 | $ | 2,258,942 | |||||||||||||||||||
| REGULATORY CAPITAL | Preliminary | ||||||||||||||||||||||||||||
| Common equity tier 1 capital | $ | 1,272,115 | $ | 1,262,789 | $ | 1,316,059 | $ | 1,333,209 | $ | 1,334,882 | |||||||||||||||||||
| Common equity tier 1 capital ratio | 10.87 | % | 10.84 | % | 11.54 | % | 11.78 | % | 11.81 | % | |||||||||||||||||||
| Tier 1 capital | $ | 1,316,020 | $ | 1,306,571 | $ | 1,359,297 | $ | 1,376,333 | $ | 1,377,892 | |||||||||||||||||||
| Tier 1 ratio | 11.24 | % | 11.22 | % | 11.92 | % | 12.16 | % | 12.19 | % | |||||||||||||||||||
| Total capital | $ | 1,635,003 | $ | 1,642,549 | $ | 1,706,513 | $ | 1,732,930 | $ | 1,741,755 | |||||||||||||||||||
| Total capital ratio | 13.97 | % | 14.10 | % | 14.97 | % | 15.31 | % | 15.41 | % | |||||||||||||||||||
| Total capital in excess of minimum requirement | $ | 406,011 | $ | 419,754 | $ | 509,536 | $ | 544,478 | $ | 554,834 | |||||||||||||||||||
| Total risk-weighted assets | $ | 11,704,681 | $ | 11,645,666 | $ | 11,399,782 | $ | 11,318,590 | $ | 11,304,012 | |||||||||||||||||||
| Leverage ratio | 8.64 | % | 8.70 | % | 9.05 | % | 9.14 | % | 9.34 | % | |||||||||||||||||||
| OTHER CAPITAL RATIOS | |||||||||||||||||||||||||||||
| Ending shareholders' equity to ending assets | 13.35 | % | 13.83 | % | 14.01 | % | 14.15 | % | 13.97 | % | |||||||||||||||||||
Ending tangible shareholders' equity to ending tangible assets (1) | 6.95 | % | 7.58 | % | 8.21 | % | 8.37 | % | 8.22 | % | |||||||||||||||||||
| Average shareholders' equity to average assets | 13.75 | % | 13.98 | % | 14.14 | % | 13.96 | % | 14.17 | % | |||||||||||||||||||
Average tangible shareholders' equity to average tangible assets (1) | 7.44 | % | 8.20 | % | 8.35 | % | 8.23 | % | 8.38 | % | |||||||||||||||||||
REPURCHASE PROGRAM (2) | |||||||||||||||||||||||||||||
| Shares repurchased | 0 | 0 | 2,484,295 | 1,308,945 | 840,115 | ||||||||||||||||||||||||
| Average share repurchase price | N/A | N/A | $ | 23.04 | $ | 25.11 | $ | 21.40 | |||||||||||||||||||||
| Total cost of shares repurchased | N/A | N/A | $ | 57,231 | $ | 32,864 | $ | 17,982 | |||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
9
earnings presentation • First Quarter 2022 Exhibit 99.2
forward looking statements disclosure 2 Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements. As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: • economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; • future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses; • the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iv) management’s ability to effectively execute its business plans; • mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; • the possibility that any of the anticipated benefits of the Company’s acquisitions will not be realized or will not be realized within the expected time period; • the effect of changes in accounting policies and practices; • changes in consumer spending, borrowing and saving and changes in unemployment; • changes in customers’ performance and creditworthiness; • the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; • current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; • the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; • our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
forward looking statements disclosure 3 • financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; • the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; • the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; • a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; • the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and • our ability to develop and execute effective business plans and strategies. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2021, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov. All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
1Q 2022 results 126th Consecutive Quarter of Profitability 4 • EOP assets decreased $320.0 million compared to the linked quarter to $16.0 billion • EOP loans decreased $46.7 million compared to the linked quarter to $9.2 billion • Average deposits decreased $101.3 million compared to the linked quarter to $12.8 billion • EOP investment securities decreased $244.2 million compared to the linked quarter Balance Sheet Profitability Asset Quality Income Statement Capital • Noninterest income - $41.3 million; $41.5 million as adjusted1 • Noninterest expense - $102.8 million; $100.0 million as adjusted1 • Efficiency ratio – 69.6%. Adjusted1 efficiency ratio – 67.7% • Effective tax rate of 18.5%. Adjusted1 effective tax rate of 18.8% • Net interest income - $106.3 million • Net interest margin of 3.12% on a GAAP basis; 3.17% on a fully tax equivalent basis1 • Net income - $41.3 million or $0.44 per diluted share. Adjusted1 net income - $43.6 million or $0.46 per diluted share • Return on average assets - 1.03%. Adjusted1 return on average assets - 1.09% • Return on average shareholders’ equity – 7.53%. Adjusted1 return on average shareholders’ equity – 7.94% • Return on average tangible common equity - 14.93%1. Adjusted1 return on average tangible common equity – 15.75% • Provision recapture - $5.8 million • Net charge-offs - $2.3 million. NCOs / Avg. Loans - 0.10% annualized • Classified Assets / Total Assets - 0.67% • ACL / Total loans - 1.34% • Total capital ratio – 13.97% • Tier 1 common equity ratio - 10.87% • Tangible common equity ratio – 6.95% • Tangible book value per share - $10.97 • Repurchased no 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.
1Q 2022 highlights • Quarterly earnings driven by net interest margin, lower credit costs and diligent expense management • Adjusted1 earnings per share - $0.46 • Adjusted1 return on assets - 1.09% • Adjusted1 pre-tax, pre-provision return on assets - 1.20% • Adjusted1 return on average tangible common equity – 15.75% • End of period loan balances declined primarily due to PPP payoffs/forgiveness; • EOP loan balances decreased $46.7 million compared to the linked quarter; PPP loan balances decreased $34.4 million • Average deposit balances decreased $101.3 million, driven by $167.0 million decline in brokered CD’s • Average transactional deposit balances grew $96.3 million compared to the linked quarter • Average noninterest bearing deposits were 32.5% of total deposits • Net interest margin (FTE) slightly higher than anticipated • 6 bp decrease from fourth quarter driven by decline in PPP forgiveness and other loan fees • 12 basis point increase in basic net interest margin • Adjusted1 noninterest income of $41.5 million • Mortgage banking revenue of $3.9 million, a decrease of $2.6 million, or 40.4%, compared to linked quarter due to rising rates • Foreign exchange income of $10.2 million, a decrease of $2.7 million, or 20.7%, from record linked quarter • Wealth management fees of $6.1 million remained strong; relatively unchanged compared to the linked quarter • Other noninterest income of $3.5 million, a decrease of $2.0 million, or 36.6%, compared to the linked quarter • Leasing business revenue of $6.1 million 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 reconciliations. 2The fair value measurements of assets acquired and liabilities assumed in the Summit acquisition are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. 5
1Q 2022 highlights • Noninterest expenses in line with expectations • Adjusted1 noninterest expense of $100.0 million; Adjusted1 for $0.3 million in Summit acquisition costs and $2.5 million of other costs such as branch consolidation and severance expenses • $8.6 million of Summit expenses during the quarter, including intangible amortization • Higher healthcare costs and elevated payroll taxes during quarter offset impact of lower incentive compensation • Efficiency ratio of 69.6%; 67.7% as adjusted1 • Allowance for credit loss (ACL) and provision expense declined compared to linked quarter • Loans and leases - ACL of $124.1 million; 1.34% of total loans; $5.6 million provision recapture • Unfunded Commitments - ACL of $13.2 million; $0.2 million provision recapture • Provision recapture driven by stable credit quality • Classified assets flat during the quarter • Nonperforming assets declined $6.5 million, or 10.9% from linked quarter • Regulatory capital ratios in excess of internal targets • Total capital of 13.97% • Tier 1 common equity of 10.87%; 3 basis point increase from linked quarter • Tangible book value decreased by $1.29 to $10.97 due to decline in AOCI • Tangible common equity of 6.95%; 32 bp increase from linked quarter excluding $142.0 million decline in AOCI • No shares repurchased in first quarter 6 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. 2The fair value measurements of assets acquired and liabilities assumed in the Summit acquisition are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. .
adjusted net income1 7 The table below lists certain adjustments that the Company believes are significant to understanding its quarterly performance. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. All dollars shown in thousands, except per share amounts As Reported Adjusted 1 As Reported Adjusted 1 Net interest income 106,346$ 106,346$ 110,806$ 110,806$ Provision for credit losses-loans and leases (5,589)$ (5,589)$ (9,525)$ (9,525)$ Provision for credit losses-unfunded commitments (226)$ (226)$ 1,799$ 1,799$ Noninterest income 41,293$ 41,293$ 45,660$ 45,660$ less: gains (losses) on investment securities - (196) A - 306 A Total noninterest income 41,293$ 41,489$ 45,660$ 45,354$ Noninterest expense 102,805$ 102,805$ 109,605$ 109,605$ less: tax credit investment - 104 A - 6,120 A less: legal settlement - - A - 3,456 A less: Summit acquistion costs - 323 A - 4,095 A less: other - 2,354 A - 1,870 A Total noninterest expense 102,805$ 100,024$ 109,605$ 94,064$ Income before income taxes 50,649$ 53,626$ 54,587$ 69,822$ Income tax expense 9,348$ 9,348$ 7,642$ 7,642$ plus: after-tax impact of tax credit investment @ 21% - 83 - 4,835 plus: tax effect of adjustments (A) @ 21% statutory rate - 625 - 3,199 Total income tax expense 9,348$ 10,056$ 7,642$ 15,676$ Net income 41,301$ 43,570$ 46,945$ 54,146$ Net earnings per share - diluted 0.44$ 0.46$ 0.50$ 0.58$ Pre-tax, pre-provision return on average assets 1.12% 1.20% 1.16% 1.54% 1Q 2022 4Q 2021
profitability 8 Return on Average Assets Return on Avg Tangible Common Equity Diluted EPS 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. Efficiency Ratio $0.44$0.50 $0.63 $0.52$0.48 $0.46 $0.58 $0.63 $0.58 $0.50 1Q224Q213Q212Q211Q21 Diluted EPS Adjusted EPS 1 1.03%1.16% 1.49% 1.26%1.20% 1.09% 1.34% 1.49% 1.39% 1.24% 1Q224Q213Q212Q211Q21 ROA Adjusted ROA1 14.93%15.11% 19.03% 16.31%15.24% 15.75% 17.43% 19.00% 18.03% 15.80% 1Q224Q213Q212Q211Q21 ROATCE Adjusted ROATCE1 60.0% 63.5% 63.5% 70.1% 69.6% 58.4% 58.4% 60.1% 60.2% 67.7% 1Q21 2Q21 3Q21 4Q21 1Q22 Efficiency Ratio Adjusted Efficiency Ratio1
net interest income & margin 9 Net Interest Margin (FTE) 1Q22 NIM (FTE) Progression Net Interest Income All dollars shown in millions 4Q21 3.23% PPP loan fees -0.11% Other loan fees -0.08% Asset yields/mix 0.11% Deposit/funding costs/mix -0.01% Day count 0.03% 1Q22 3.17% $3.7$6.5$3.9$3.4$3.2 $2.2$2.3 $3.0$3.5$3.4 $1.7 $5.6$9.3$9.2$10.0 $106.3 $110.8 $113.4$114.0$113.9 1Q224Q213Q212Q211Q21 Loan Fees Loan Accretion PPP Interest/Fees 2.94% 2.82%2.87%2.89%2.96% 0.11% 0.18%0.11%0.10% 0.09% 0.07% 0.07%0.09%0.10% 0.10% 0.05%0.16% 0.25%0.22% 0.25% 3.17% 3.23% 3.32%3.31% 3.40% 1Q224Q213Q212Q211Q21 Basic Margin (FTE) Loan Fees Loan Accretion PPP Fees
average balance sheet 10 Average Loans Average Securities Average Deposits All dollars shown in millions 1 Includes loans fees and loan accretion $9,267$9,283$9,503$9,832$9,952 3.82% 3.96% 4.03%3.98%4.03% 1Q224Q213Q212Q211Q21 Gross Loans Loan Yield (Gross)1 $12,784$12,885$12,667$12,711$12,372 0.08%0.10%0.10%0.12%0.14% 1Q224Q213Q212Q211Q21 Total Deposits Cost of Deposits $4,308$4,344$4,189$4,130$3,783 2.50%2.29%2.31%2.37%2.54% 1Q224Q213Q212Q211Q21 Average Investment Securities Investment Securities Yield
11 1NII – Year 1 impact, represents percentage change for immediate parallel changes in rates. 2Reflects percentage of loans classified as variable rate and repricing in ≤ 1yr, variable rate and repricing in ≤ 1yr at its floor, hybrid variable rate repricing in > 1yr, or fixed rate, including loans held for sale. 3Schedule reflects remaining maturity or repricing frequency for all fixed rate loans or hybrid variable rate loans repricing in > 1yr, including loans held for sale. asset sensitive balance sheet positioning Net Interest Income Sensitivity 1 Loans - Variable Exposure2 Fixed/Hybrid Years to Maturity/Repricing3 12% 8% 13% 67% ≤1 yr 1-2 yrs 2-3 yrs > 3 yrs ‐6.9% 9.8% 19.4% ‐100 bps +100 bps +200 bps Variable ≤ 1yr 58% Variable ≤ 1yr ‐ At floor 7% Hybrid > 1yr 8% Fixed 27%
liquid balance sheet presents opportunity 12 1Historical data adjusted for the merger with MainSource Financial Group, Inc. using the sum of the individual components. Historical Deposit and Loan Betas1 Total Deposit Beta Loan Beta Excess Liquidity Provides Significant Tailwind 24% 31% 3Q15‐2Q19 Fed Cycle (+225bps) 3Q19‐4Q21 Fed Cycle (‐225bps) 53.1% 72.0% 3Q15‐2Q19 Fed Cycle (+225bps) 3Q19‐4Q21 Fed Cycle (‐225bps) 22% 22% 25% 26% 28% 29% 30% 29% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Cash + Securities / Assets 87% 88% 81% 79% 76% 74% 72% 72% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Loans / Deposits Ratio
loan portfolio 13 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) 1 Net of unearned fees of $1.0 million All dollars shown in millions Total growth/(decline): ($46.7 million) ICRE $3,792 41% Commercial & Small Business Banking $2,684 29% Consumer $864 9% Mortgage $986 11% Oak Street $555 6% Franchise $284 3% Summit $56 1% PPP $21 0% Total $9.2 Billion 1 ‐$66.2 $16.6 $16.1 $16.5 $27.2 ‐$36.3 $13.8 ‐$34.4 ICRE Commercial & Small Business Banking Consumer Mortgage Oak Street Franchise Summit PPP
loan concentrations 14 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, Waste Management, and Arts & Recreation. 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, Residential Multi-Family 5+ Construction, Farmland, Real Estate IUB Other, Recreation Facility, Church, and Student Housing. Finance & Insurance 21% Manufacturing 15% Real Estate 15% Accommodation & Food Services 8% Health Care 7% Construction 6% Professional & Tech 6% Transportation & Warehousing 4% Wholesale Trade 4% Retail Trade 3% Other 11% C&I Loans: $2.9 billion Residential, Multi Family 5+ 19% Retail 18% Office 14% Hotel/Motel 8% Nursing/Assisted Living 6% Industrial Facility 5% Warehouse 4% Restaurant 3% Medical Office 3% Other 20% CRE Loans: $4.3 billion
deposits 15 Deposit Product Mix (Avg) 1Q22 Average Deposit Progression All dollars shown in millions Total growth/(decline): ($101.3) million $73.7 $7.7 $48.2 ‐$42.4 ‐$33.2 ‐$167.0 $11.7 Interest‐bearing demand Noninterest‐bearing Savings Money Markets Retail CDs Brokered CDs Public Funds Interest‐bearing demand $1,882 15% Noninterest‐ bearing $3,953 31% Savings $1,343 10% Money Markets $2,329 18% Retail CDs $941 7% Brokered CDs $215 2% Public Funds $2,121 17% Total $12.8 billion
noninterest income 16 Noninterest Income 1Q22 Highlights All dollars shown in thousands • Total fee income 28.0% of net revenue • Foreign exchange income of $10.2 million; decreased $2.7 million, or 20.7%, from linked quarter • Trust and wealth management fees of $6.1 million remained flat from linked quarter • Deposit service charge income of $7.7 million; decreased $0.9 million, or 10.6%, from the linked quarter • Mortgage banking income of $3.9 million; decreased $2.6 million, or 40.4%, from the linked quarter • Client derivative income of $0.8 million; decreased $1.5 million, or 65.3% from the linked quarter • Other noninterest income of $3.3 million; decreased $2.5 million, or 43.4%, from the linked quarter Service Charges $7,729 19% Wealth Mgmt $6,060 15% Bankcard income $3,337 8% Client derivative fees $799 2% Foreign exchange income $10,151 24% Leasing business income $6,076 15% Mortgage origination income $3,872 9% Other $3,269 8% Total $41.3 million
noninterest expense 17 Noninterest Expense 1Q22 Highlights All dollars shown in thousands • $8.6 million of Summit expenses, including intangible amortization • Core expenses in line with expectations as higher healthcare costs and seasonal increase in payroll taxes offset lower incentive compensation • Adjustments include: • $0.3 million of acquisition related costs • $2.5 million of other costs not expected to recur such as branch consolidation and severance costs Salaries and benefits $63,947 62% Occupancy and equipment $9,313 9% Data processing $8,264 8% Professional services $2,159 2% Intangible amortization $2,914 3% Leasing business expense $3,869 4% Other $12,339 12% Total $102.8 million
current expected credit losses - loans and leases 18 ACL / Total Loans 1Q22 Highlights All dollars shown in thousands • $137.3 million combined ACL; $5.8 million combined provision recapture • $124.1 million ACL – loans and leases, or 1.34% of loan balances; $5.6 million of provision recapture; driven by strong credit quality • Utilized March Moody’s baseline forecast in quantitative model • $13.2 million ACL – unfunded commitments; $0.2 million provision recapture for this portion of the ACL ACL by Loan Type All dollars shown in millions $124.1$132.0 $148.9$159.6$169.9 1.34%1.42% 1.59% 1.68%1.71% 1Q224Q213Q212Q211Q21 Allowance for Credit Losses ACL / Total Loans 1Q21 2Q21 3Q21 4Q21 1Q22 Loans Commercial and industrial 45,139$ 46,797$ 43,534$ 44,052$ 37,783$ Lease financing 1,015 1,457 1,083 1,633 2,093 Real estate ‐construction 22,734 20,359 15,390 11,874 11,410 Real estate ‐ commercial 78,669 70,305 68,594 53,420 51,512 Real estate ‐ residential 7,748 6,879 6,480 6,225 6,152 Home equity 10,760 9,684 9,538 9,643 9,676 Installment 1,235 1,211 1,177 1,097 1,075 Credit card 2,623 2,898 3,107 4,048 4,429 ACL‐loan and lease losses 169,923$ 159,590$ 148,903$ 131,992$ 124,130$ ACL‐unfunded commitments 13,040$ 13,558$ 11,607$ 13,406$ 13,179$
asset quality 19 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 $106.8$104.8 $165.5 $182.5$196.8 0.67%0.64% 1.04% 1.14%1.22% 1Q224Q213Q212Q211Q21 Classified Assets Classified Assets / Total Assets $53.6$60.1 $77.8 $98.8$97.7 0.33%0.37%0.49% 0.62%0.60% 1Q224Q213Q212Q211Q21 NPAs NPAs / Total Assets $9.2 $5.6 $2.5 $7.4 $2.3 $4.0 ‐$4.2 ‐$10.1 ‐$7.7 ‐$5.8 0.10% 0.32% 0.10% 0.23% 0.38% 1Q21 2Q21 3Q21 4Q21 1Q22 NCOs Provision Expense NCOs / Average Loans
capital 20 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 3/31 Risk Weighted Assets = $11,704,681 All capital numbers are considered preliminary. 1Decline in 1Q22 due to $142.0 million decline in AOCI Tier 1 Capital Ratio 6.95%1 7.58% 8.21%8.37%8.22% 1Q224Q213Q212Q211Q21 Tangible Common Equity Ratio 10.87%10.84% 11.54%11.78%11.81% 7.00% 1Q224Q213Q212Q211Q21 Tier 1 Common Equity Ratio Basel III minimum 13.97%14.10% 14.97%15.31%15.41% 10.50% 1Q224Q213Q212Q211Q21 Total Capital Ratio Basel III minimum 11.24%11.22% 11.92%12.16%12.19% 8.50% 1Q224Q213Q212Q211Q21 Tier 1 Capital Ratio Basel III minimum
capital strategy 21 Strategy & Deployment Tangible Book Value Per Share • 4.0% annualized dividend yield • 52.3% of 1Q22 earnings returned to shareholders through common dividend • Most recent internal stress testing indicates capital ratios above regulatory minimums in all modeled scenarios • Common dividend expected to remain unchanged in near-term • No shares repurchased in 1Q22; no plans to repurchase shares in near- term• Decline in TBV per share driven by Summit acquisition and 1Q22 decline in AOCI $10.97 $12.26 $13.09 $13.08 $12.78 1Q224Q213Q212Q211Q21 Tangible Book Value per Share
outlook commentary1 • Loan balances expected to grow low-mid single digits in near term, excluding PPP and Summit • Securities balances expected to remain flat over the near-term • Deposit balances expected to be stable over near-term 22 • Expected to be $100-102 million • 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, but less than in recent quarters • Allowance for credit losses expected to decline as a percentage of loans • Uncertainty regarding supply chain, pandemic and inflation Noninterest Income • Total fee income expected to be $47-49 million • Mortgage banking at risk from rising rate environment • Declining overdraft fees due to program changes 1 See Forward Looking Statement Disclosure on page 2-3 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. • Expected to improve with anticipated interest rate increases • Asset sensitive position advantageous with rising rates Capital • Maintain dividend at current levels Summit • Unchanged outlook; negligible impact on 2022 EPS • Near-term financial impact negatively affected by intangible amortization • $400 million of annual originations, growing at double-digits
The Company’s Investor Presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting provides meaningful information and therefore we use it to supplement our GAAP information. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments and to provide an additional measure of performance. We believe this information is helpful in understanding the results of operations separate and apart from items that may, or could, have a disproportional positive or negative impact in any given period. For a reconciliation of the differences between the non-GAAP financial measures and the most comparable GAAP measures, please refer to the following reconciliation tables. to GAAP Reconciliation 23 appendix: non-GAAP measures
appendix: non-GAAP to GAAP reconciliation 24 All dollars shown in thousands Net interest income and net interest margin - fully tax equivalent Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2022 2021 2021 2021 2021 Net interest income 106,346$ 110,806$ 113,410$ 114,026$ 113,876$ Tax equivalent adjustment 1,467 1,386 1,434 1,619 1,652 Net interest income - tax equivalent 107,813$ 112,192$ 114,844$ 115,645$ 115,528$ Average earning assets 13,809,520$ 13,793,644$ 13,724,403$ 14,007,765$ 13,781,760$ Net interest margin1 3.12 % 3.19 % 3.28 % 3.27 % 3.35 % Net interest margin (fully tax equivalent)1 3.17 % 3.23 % 3.32 % 3.31 % 3.40 % 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 25 All dollars shown in thousands Additional non-GAAP ratios Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, (Dollars in thousands, except per share data) 2022 2021 2021 2021 2021 Net income (a) 41,301$ 46,945$ 60,012$ 50,888$ 47,315$ Average total shareholders' equity 2,225,495 2,241,820 2,261,293 2,263,687 2,272,749 Less: Goodwill (1,000,238) (938,453) (937,771) (937,771) (937,771) Other intangibles (87,602) (56,120) (58,314) (60,929) (63,529) MSR's (15,431) (14,886) (14,215) (13,310) (12,749) Average tangible equity (b) 1,122,224 1,232,361 1,250,993 1,251,677 1,258,700 Total shareholders' equity 2,137,445 2,258,942 2,236,170 2,269,507 2,258,942 Less: Goodwill (999,959) (1,000,749) (937,771) (937,771) (937,771) Other intangibles (85,891) (88,898) (56,811) (59,391) (61,984) MSR's (15,782) (15,469) (14,852) (14,142) (13,156) Ending tangible equity (c) 1,035,813 1,153,826 1,226,736 1,258,203 1,246,031 Total assets 16,009,150 16,329,141 15,956,593 16,037,919 16,175,071 Less: Goodwill (999,959) (1,000,749) (937,771) (937,771) (937,771) Other intangibles (85,891) (88,898) (56,811) (59,391) (61,984) MSR's (15,782) (15,469) (14,852) (14,142) (13,156) Ending tangible assets (d) 14,907,518 15,224,025 14,947,159 15,026,615 15,162,160 Risk-weighted assets (e) 11,704,681 11,645,666 11,399,782 11,318,590 11,304,012 Total average assets 16,184,919 16,036,417 15,995,808 16,215,469 16,042,654 Less: Goodwill (1,000,238) (938,453) (937,771) (937,771) (937,771) Other intangibles (87,602) (56,120) (58,314) (60,929) (63,529) MSR's (15,431) (14,886) (14,215) (13,310) (12,749) Average tangible assets (f) 15,081,648$ 15,026,958$ 14,985,508$ 15,203,459$ 15,028,605$ Ending shares outstanding (g) 94,451,496 94,149,240 93,742,797 96,199,509 97,517,693 Ratios Return on average tangible shareholders' equity (a)/(b) 14.93% 15.11% 19.03% 16.31% 15.24% Ending tangible equity as a percent of: Ending tangible assets (c)/(d) 6.95% 7.58% 8.21% 8.37% 8.22% Risk-weighted assets (c)/(e) 8.85% 9.91% 10.76% 11.12% 11.02% Average tangible equity as a percent of average tangible assets (b)/(f) 7.44% 8.20% 8.35% 8.23% 8.38% Tangible book value per share (c)/(g) 10.97$ 12.26$ 13.09$ 13.08$ 12.78$ Three months ended,
appendix: non-GAAP to GAAP reconciliation 26 Additional non-GAAP measures 3Q21 2Q21 1Q21 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 106,346$ 106,346$ 110,806$ 110,806$ 113,410$ 113,410$ 114,026$ 114,026$ 113,876$ 113,876$ Provision for credit losses-loans and leases (j) (5,589) (5,589) (9,525) (9,525) (8,193) (8,193) (4,756) (4,756) 3,450 3,450 Provision for credit losses-unfunded commitments (j) (226) (226) 1,799 1,799 (1,951) (1,951) 517 517 538 538 Noninterest income 41,293 41,293 45,660 45,660 42,537 42,537 42,987 42,987 40,322 40,322 less: gains (losses) on sale of investment securities (196) 306 (205) (104) (54) less: other - - 500 - 193 Total noninterest income (g) 41,293 41,489 45,660 45,354 42,537 42,242 42,987 43,091 40,322 40,183 Noninterest expense 102,805 102,805 109,605 109,605 99,058 99,058 99,643 99,643 92,506 92,506 less: severance and merger-related expenses - - - 98 1,261 less: tax credit investments 104 6,120 5,309 1,156 208 less: legal settlement - 3,456 - 3,825 - less: Summit acquisition costs 323 4,095 - - - less: COVID-19 and other 2,354 1,870 181 2,772 1,054 Total noninterest expense (e) 102,805 100,024 109,605 94,064 99,058 93,568 99,643 91,792 92,506 89,983 Income before income taxes (i) 50,649 53,626 54,587 69,822 67,033 72,228 61,609 69,564 57,704 60,088 Income tax expense 9,348 9,348 7,642 7,642 7,021 7,021 10,721 10,721 10,389 10,389 plus: tax effect of adjustments 83 4,835 4,194 913 501 plus: after-tax impact of tax credit investments @ 21% 625 3,199 1,091 1,671 164 Total income tax expense (h) 9,348 10,056 7,642 15,676 7,021 12,306 10,721 13,305 10,389 11,054 Net income (a) 41,301$ 43,570$ 46,945$ 54,146$ 60,012$ 59,922$ 50,888$ 56,259$ 47,315$ 49,034$ Average diluted shares (b) 94,264 94,264 93,762 93,762 95,144 95,144 97,010 97,010 97,728 97,728 Average assets (c) 16,184,919 16,184,919 16,036,417 16,036,417 15,995,808 15,995,808 16,215,469 16,215,469 16,042,654 16,042,654 Average shareholders' equity 2,225,495 2,225,495 2,241,820 2,241,820 2,261,293 2,261,293 2,263,687 2,263,687 2,272,749 2,272,749 Less: Goodw ill and other intangibles (1,103,271) (1,103,271) (1,009,459) (1,009,459) (1,010,300) (1,010,300) (1,012,010) (1,012,010) (1,014,049) (1,014,049) Average tangible equity (d) 1,122,224 1,122,224 1,232,361 1,232,361 1,250,993 1,250,993 1,251,677 1,251,677 1,258,700 1,258,700 Ratios Net earnings per share - diluted (a)/(b) 0.44$ 0.46$ 0.50$ 0.58$ 0.63$ 0.63$ 0.52$ 0.58$ 0.48$ 0.50$ Return on average assets - (a)/(c) 1.03% 1.09% 1.16% 1.34% 1.49% 1.49% 1.26% 1.39% 1.20% 1.24% Pre-tax, pre-provision return on average assets - ((a)+(j)+(h))/(c) 1.12% 1.20% 1.16% 1.54% 1.41% 1.54% 1.42% 1.62% 1.56% 1.62% Return on average tangible shareholders' equity - (a)/(d) 14.93% 15.75% 15.11% 17.43% 19.03% 19.00% 16.31% 18.03% 15.24% 15.80% Efficiency ratio - (e)/((f)+(g)) 69.6% 67.7% 70.1% 60.2% 63.5% 60.1% 63.5% 58.4% 60.0% 58.4% Effective tax rate - (h)/(i) 18.5% 18.8% 14.0% 22.5% 10.5% 17.0% 17.4% 19.1% 18.0% 18.4% (Dollars in thousands, except per share data) 1Q22 4Q21
27 First Financial Bancorp First Financial Center 255 East Fifth Street Cincinnati, OH 45202