FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - FIRST FINANCIAL BANCORP /OH/	exh992earningsrelease1q1.htm
8-K - 8-K - FIRST FINANCIAL BANCORP /OH/	a8kearningsrelease1q17.htm

EXHIBIT 99.1

First Financial Bancorp. Reports First Quarter 2017 Financial Results

First Quarter Diluted Earnings per Share Increased 22% Compared to 2016

Cincinnati, Ohio - April 20, 2017 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the first quarter 2017. For the three months ended March 31, 2017, the Company reported net income of $24.4 million, or $0.39 per diluted common share. These results compare to net income of $23.3 million, or $0.38 per diluted common share, for the fourth quarter of 2016 and $19.8 million, or $0.32 per diluted common share, for the first quarter of 2016.

Return on average assets for the first quarter of 2017 was 1.18% while return on average tangible common equity was 14.98%. These compare to a return on average assets of 1.11% and return on average tangible common equity of 14.19% in the fourth quarter of 2016 and a return on average assets of 0.98% and a return on average tangible common equity of 13.06% in the first quarter of 2016.

First quarter 2017 highlights include:


•	Net income increased $1.1 million, or 4.8%, compared to the linked quarter; $4.6 million, or 23.2%, compared to first quarter 2016


•	Loan balances declined $3.4 million, or 0.1%, compared to the linked quarter; loan balances increased $249.5 million, or 4.5%, compared to first quarter 2016


•	Total deposits increased $4.1 million, or 0.1%, from the linked quarter; $353.1 million, or 5.7%, compared to first quarter 2016


•	Net interest margin of 3.63% on a GAAP basis; margin declined 1 basis point to 3.70% on a fully tax equivalent basis


•	Continued solid credit performance with lower net charge-offs, classified asset balances and reserves on covered/formerly covered assets resulting in $2.4 million decline in provision expense compared to the linked quarter


•	Effective tax rate of 30.0%, includes $1.1 million impact from adoption of new accounting guidance for stock compensation


•	Linked quarter improvement in capital ratios; tier 1 ratio of 10.59%, total ratio of 13.19% and leverage ratio of 8.69%


•	Efficiency ratio of 59.2% compared to 57.6% in the linked quarter and 61.8% in first quarter 2016

Claude Davis, Chief Executive Officer, commented, “We are pleased to report strong earnings for the first quarter of 2017, which was our 106^thconsecutive quarter of profitability. Our proactive approach to managing the balance sheet resulted in higher investment income, which combined with higher fee income, lower credit costs and the tax benefit related to new accounting guidance to offset the earnings impact from softer loan demand. Capital ratios improved during the period and we continue to evaluate and implement strategic initiatives aimed at growing fee income and efficiently managing our expenses."

"As we look further into 2017, we continue to focus on organic loan and deposit growth and increasing operational efficiency across our company. While loan demand in the first quarter fell short of our expectations, we are encouraged by the current pipeline and believe our solid first quarter results put us in a position to continue delivering on our premier business bank strategy and capitalize on consumer and business confidence."

This release announcing our first quarter 2017 financial results includes an accompanying slide presentation, which management intends to refer to during the conference call on Friday, April 21, 2017.

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 21, 2017 at 8:30 a.m. Eastern Standard Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10104461. 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 and any non-GAAP reconciliations related to this release is available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2017, the Company had $8.5 billion in assets, $5.8 billion in loans, $6.5 billion in deposits and $880.1 million in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its four lines of business: Commercial and Private Banking, Retail Banking, Investment Commercial Real Estate and Commercial Finance. These business units provide traditional banking services to business and retail clients. Commercial and Private Banking includes First Financial Wealth Management, which provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.5 billion in assets under management as of March 31, 2017. The Company’s primary operating markets are located in Ohio, Indiana and Kentucky where it operates 103 banking centers, 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.

Forward-Looking Statement

This earnings release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not based on historical or current facts, but rather on our current beliefs, expectations, assumptions and projections about our business, the economy and other future conditions. Forward-looking statements often include words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” ‘‘intends,’’ “could,” “should,” and other similar references to future periods. 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. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; (ii) 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; (iii) management’s ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the Company’s ability to comply with the terms of loss sharing agreements with the FDIC; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers’ performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov.

Forward-looking statements are meaningful only on the date when such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances that may arise after the date on which a forward-looking statement is made.

Contact Information

Investors/Analysts Media

John Gavigan Lynda Crossan

Chief Financial Officer Marketing Director

(513) 887-5400 (513) 979-5817

InvestorRelations@bankatfirst.com Lynda.Crossan@bankatfirst.com

Selected Financial Information

March 31, 2017

(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
Credit Quality	7
Capital Adequacy	8



FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended,
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2017			2016			2016			2016			2016
RESULTS OF OPERATIONS
Net income	$	24,414		$	23,294		$	22,850		$	22,568		$	19,814
Net earnings per share - basic	$	0.40		$	0.38		$	0.37		$	0.37		$	0.32
Net earnings per share - diluted	$	0.39		$	0.38		$	0.37		$	0.36		$	0.32
Dividends declared per share	$	0.17		$	0.16		$	0.16		$	0.16		$	0.16

KEY FINANCIAL RATIOS
Return on average assets	1.18		%	1.11		%	1.09		%	1.11		%	0.98		%
Return on average shareholders' equity	11.36		%	10.73		%	10.62		%	10.84		%	9.70		%
Return on average tangible shareholders' equity	14.98		%	14.19		%	14.08		%	14.49		%	13.06		%

Net interest margin	3.63		%	3.66		%	3.61		%	3.61		%	3.62		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.70		%	3.71		%	3.66		%	3.67		%	3.68		%

Ending shareholders' equity as a percent of ending assets	10.32		%	10.25		%	10.29		%	10.19		%	10.09		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	8.05		%	7.96		%	7.97		%	7.85		%	7.71		%
Risk-weighted assets	9.90		%	9.73		%	9.63		%	9.51		%	9.49		%

Average shareholders' equity as a percent of average assets	10.36		%	10.33		%	10.29		%	10.21		%	10.12		%
Average tangible shareholders' equity as a percent of
average tangible assets	8.06		%	8.01		%	7.96		%	7.83		%	7.71		%

Book value per share	$	14.16		$	13.96		$	13.90		$	13.67		$	13.36
Tangible book value per share	$	10.78		$	10.56		$	10.50		$	10.26		$	9.94

Common equity tier 1 ratio ⁽²⁾	10.59		%	10.46		%	10.20		%	10.07		%	10.16		%
Tier 1 ratio ⁽²⁾	10.59		%	10.46		%	10.20		%	10.07		%	10.16		%
Total capital ratio ⁽²⁾	13.19		%	13.10		%	12.82		%	12.70		%	12.84		%
Leverage ratio ⁽²⁾	8.69		%	8.60		%	8.45		%	8.38		%	8.27		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽³⁾	$	5,736,513		$	5,780,865		$	5,743,773		$	5,569,080		$	5,417,812
FDIC indemnification asset	11,520			12,782			14,031			15,404			17,138
Investment securities	1,906,699			1,816,944			1,811,240			1,869,540			1,938,772
Interest-bearing deposits with other banks	40,985			19,557			22,116			21,687			24,291
Total earning assets	$	7,695,717		$	7,630,148		$	7,591,160		$	7,475,711		$	7,398,013
Total assets	$	8,409,071		$	8,359,912		$	8,322,156		$	8,203,837		$	8,118,945
Noninterest-bearing deposits	$	1,499,097		$	1,544,598		$	1,453,842		$	1,441,068		$	1,386,768
Interest-bearing deposits	4,942,766			5,012,613			4,746,887			4,867,439			4,749,253
Total deposits	$	6,441,863		$	6,557,211		$	6,200,729		$	6,308,507		$	6,136,021
Borrowings	$	968,326		$	815,928		$	1,153,042		$	965,951		$	1,065,739
Shareholders' equity	$	871,215		$	863,509		$	856,296		$	837,412		$	821,588

CREDIT QUALITY RATIOS
Allowance to ending loans	0.98		%	1.01		%	1.00		%	0.99		%	0.98		%
Allowance to nonaccrual loans	169.85		%	326.91		%	314.84		%	254.56		%	244.16		%
Allowance to nonperforming loans	89.25		%	120.83		%	114.17		%	112.74		%	103.07		%
Nonperforming loans to total loans	1.10		%	0.83		%	0.87		%	0.88		%	0.95		%
Nonperforming assets to ending loans, plus OREO	1.19		%	0.94		%	1.00		%	1.04		%	1.16		%
Nonperforming assets to total assets	0.80		%	0.64		%	0.69		%	0.72		%	0.78		%
Classified assets to total assets	1.34		%	1.48		%	1.70		%	1.72		%	1.63		%
Net charge-offs to average loans (annualized)	0.14		%	0.17		%	0.05		%	0.08		%	0.10		%

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

(2) March 31, 2017 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.



FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2017			2016
	First			Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans, including fees	$	66,868		$	67,883		$	66,997		$	64,424		$	63,399		$	262,703
Investment securities
Taxable	11,608			10,698			10,326			10,706			11,373			43,103
Tax-exempt	1,353			1,134			1,083			1,156			1,162			4,535
Total investment securities interest	12,961			11,832			11,409			11,862			12,535			47,638
Other earning assets	(1,001		)	(1,068		)	(1,081		)	(1,103		)	(1,139		)	(4,391		)
Total interest income	78,828			78,647			77,325			75,183			74,795			305,950

Interest expense
Deposits	6,925			6,026			5,600			5,457			5,530			22,613
Short-term borrowings	1,432			915			1,368			1,053			1,170			4,506
Long-term borrowings	1,539			1,540			1,539			1,541			1,540			6,160
Total interest expense	9,896			8,481			8,507			8,051			8,240			33,279
Net interest income	68,932			70,166			68,818			67,132			66,555			272,671
Provision for loan and lease losses	367			2,761			1,687			4,037			1,655			10,140
Net interest income after provision for loan and lease losses	68,565			67,405			67,131			63,095			64,900			262,531

Noninterest income
Service charges on deposit accounts	4,644			5,041			5,056			4,455			4,381			18,933
Trust and wealth management fees	3,747			3,241			3,236			3,283			3,440			13,200
Bankcard income	3,135			3,136			2,984			3,130			2,882			12,132
Client derivative fees	1,103			466			1,210			1,799			1,095			4,570
Net gains from sales of loans	1,216			1,711			2,066			1,846			1,181			6,804
Net gains on sale of investment securities	516			0			398			(188		)	24			234
Other	3,003			3,351			1,999			5,869			2,509			13,728
Total noninterest income	17,364			16,946			16,949			20,194			15,512			69,601

Noninterest expenses
Salaries and employee benefits	31,750			31,127			32,093			29,526			29,615			122,361
Net occupancy	4,515			4,338			4,543			4,491			4,957			18,329
Furniture and equipment	2,177			2,181			2,139			2,130			2,213			8,663
Data processing	3,298			3,095			2,828			2,765			2,718			11,406
Marketing	510			1,458			641			801			1,065			3,965
Communication	447			404			527			477			481			1,889
Professional services	1,758			1,731			1,460			1,299			1,813			6,303
State intangible tax	721			117			639			639			639			2,034
FDIC assessments	932			1,001			1,048			1,112			1,132			4,293
Loss (gain) - other real estate owned	24			(953		)	(112		)	43			(190		)	(1,212		)
Other	4,913			5,523			5,029			6,142			5,980			22,674
Total noninterest expenses	51,045			50,163			51,105			49,413			50,720			201,401
Income before income taxes	34,884			34,188			32,975			33,876			29,692			130,731
Income tax expense	10,470			10,894			10,125			11,308			9,878			42,205
Net income	$	24,414		$	23,294		$	22,850		$	22,568		$	19,814		$	88,526

ADDITIONAL DATA
Net earnings per share - basic	$	0.40		$	0.38		$	0.37		$	0.37		$	0.32		$	1.45
Net earnings per share - diluted	$	0.39		$	0.38		$	0.37		$	0.36		$	0.32		$	1.43
Dividends declared per share	$	0.17		$	0.16		$	0.16		$	0.16		$	0.16		$	0.64

Return on average assets	1.18		%	1.11		%	1.09		%	1.11		%	0.98		%	1.07		%
Return on average shareholders' equity	11.36		%	10.73		%	10.62		%	10.84		%	9.70		%	10.48		%

Interest income	$	78,828		$	78,647		$	77,325		$	75,183		$	74,795		$	305,950
Tax equivalent adjustment	1,225			1,077			1,028			1,058			1,052			4,215
Interest income - tax equivalent	80,053			79,724			78,353			76,241			75,847			310,165
Interest expense	9,896			8,481			8,507			8,051			8,240			33,279
Net interest income - tax equivalent	$	70,157		$	71,243		$	69,846		$	68,190		$	67,607		$	276,886

Net interest margin	3.63		%	3.66		%	3.61		%	3.61		%	3.62		%	3.62		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.70		%	3.71		%	3.66		%	3.67		%	3.68		%	3.68		%

Full-time equivalent employees	1,424			1,420			1,402			1,403			1,390

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% 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.



FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			% Change		% Change
	2017			2016			2016			2016			2016			Linked Qtr.		Comparable Qtr.
ASSETS
Cash and due from banks	$	117,914		$	121,598		$	117,982		$	106,174		$	102,675		(3.0	)%	14.8	%
Interest-bearing deposits with other banks	39,058			82,450			16,765			18,911			15,582			(52.6	)%	150.7	%
Investment securities available-for-sale	1,220,046			1,039,870			1,120,494			1,114,349			1,164,319			17.3	%	4.8	%
Investment securities held-to-maturity	730,796			763,254			628,497			670,111			702,315			(4.3	)%	4.1	%
Other investments	50,996			51,077			51,170			51,261			53,255			(0.2	)%	(4.2	)%
Loans held for sale	7,657			13,135			17,414			10,494			15,369			(41.7	)%	(50.2	)%
Loans and leases
Commercial and industrial	1,779,635			1,781,948			1,782,782			1,794,533			1,744,732			(0.1	)%	2.0	%
Lease financing	88,888			93,108			96,046			100,263			101,135			(4.5	)%	(12.1	)%
Construction real estate	446,332			399,434			380,349			374,949			341,453			11.7	%	30.7	%
Commercial real estate	2,398,235			2,427,577			2,468,083			2,363,456			2,261,857			(1.2	)%	6.0	%
Residential real estate	486,601			500,980			507,715			512,800			508,512			(2.9	)%	(4.3	)%
Home equity	458,974			460,388			463,702			467,549			466,010			(0.3	)%	(1.5	)%
Installment	52,063			50,639			47,825			46,917			41,627			2.8	%	25.1	%
Credit card	43,354			43,408			43,009			40,746			39,283			(0.1	)%	10.4	%
Total loans	5,754,082			5,757,482			5,789,511			5,701,213			5,504,609			(0.1	)%	4.5	%
Less:
Allowance for loan and lease losses	56,326			57,961			57,618			56,708			53,732			(2.8	)%	4.8	%
Net loans	5,697,756			5,699,521			5,731,893			5,644,505			5,450,877			0.0	%	4.5	%
Premises and equipment	131,808			131,579			132,082			133,969			138,036			0.2	%	(4.5	)%
Goodwill and other intangibles	210,324			210,625			210,888			211,199			211,533			(0.1	)%	(0.6	)%
Accrued interest and other assets	324,815			324,858			341,296			349,129			339,593			0.0	%	(4.4	)%
Total Assets	$	8,531,170		$	8,437,967		$	8,368,481		$	8,310,102		$	8,193,554		1.1	%	4.1	%

LIABILITIES
Deposits
Interest-bearing demand	$	1,494,892		$	1,513,771		$	1,494,529		$	1,436,078		$	1,430,963		(1.2	)%	4.5	%
Savings	2,284,821			2,142,189			2,005,407			1,974,449			1,922,892			6.7	%	18.8	%
Time	1,202,563			1,321,843			1,346,736			1,279,934			1,414,313			(9.0	)%	(15.0	)%
Total interest-bearing deposits	4,982,276			4,977,803			4,846,672			4,690,461			4,768,168			0.1	%	4.5	%
Noninterest-bearing	1,547,600			1,547,985			1,492,011			1,429,163			1,408,609			0.0	%	9.9	%
Total deposits	6,529,876			6,525,788			6,338,683			6,119,624			6,176,777			0.1	%	5.7	%
Federal funds purchased and securities sold
under agreements to repurchase	52,484			120,212			77,936			80,084			75,499			(56.3	)%	(30.5	)%
FHLB short-term borrowings	806,700			687,700			848,300			1,035,000			894,400			17.3	%	(9.8	)%
Total short-term borrowings	859,184			807,912			926,236			1,115,084			969,899			6.3	%	(11.4	)%
Long-term debt	119,629			119,589			119,549			119,596			119,556			0.0	%	0.1	%
Total borrowed funds	978,813			927,501			1,045,785			1,234,680			1,089,455			5.5	%	(10.2	)%
Accrued interest and other liabilities	142,416			119,454			122,876			109,075			100,735			19.2	%	41.4	%
Total Liabilities	7,651,105			7,572,743			7,507,344			7,463,379			7,366,967			1.0	%	3.9	%

SHAREHOLDERS' EQUITY
Common stock	567,911			570,382			569,199			567,687			567,497			(0.4	)%	0.1	%
Retained earnings	451,073			437,188			423,800			410,893			398,224			3.2	%	13.3	%
Accumulated other comprehensive loss	(26,639		)	(28,443		)	(17,522		)	(17,688		)	(23,209		)	(6.3	)%	14.8	%
Treasury stock, at cost	(112,280		)	(113,903		)	(114,340		)	(114,169		)	(115,925		)	(1.4	)%	(3.1	)%
Total Shareholders' Equity	880,065			865,224			861,137			846,723			826,587			1.7	%	6.5	%
Total Liabilities and Shareholders' Equity	$	8,531,170		$	8,437,967		$	8,368,481		$	8,310,102		$	8,193,554		1.1	%	4.1	%



FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	Quarterly Averages
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2017			2016			2016			2016			2016
ASSETS
Cash and due from banks	$	115,719		$	122,130		$	116,441		$	121,426		$	117,782
Interest-bearing deposits with other banks	40,985			19,557			22,116			21,687			24,291
Investment securities	1,906,699			1,816,944			1,811,240			1,869,540			1,938,772
Loans held for sale	8,125			14,729			11,197			11,752			13,216
Loans and leases
Commercial and industrial	1,782,829			1,767,570			1,786,461			1,752,237			1,657,279
Lease financing	89,549			93,817			96,518			100,103			94,935
Construction real estate	414,038			376,616			380,894			348,100			322,600
Commercial real estate	2,390,004			2,470,280			2,400,308			2,294,980			2,270,686
Residential real estate	497,412			503,711			512,341			510,262			509,422
Home equity	459,821			461,177			466,062			466,170			466,722
Installment	50,722			49,071			47,428			44,438			41,698
Credit card	44,013			43,894			42,564			41,038			41,254
Total loans	5,728,388			5,766,136			5,732,576			5,557,328			5,404,596
Less:
Allowance for loan and lease losses	58,461			58,733			58,284			55,504			54,882
Net loans	5,669,927			5,707,403			5,674,292			5,501,824			5,349,714
Premises and equipment	132,384			132,414			133,360			137,927			138,377
Goodwill and other intangibles	210,513			210,768			211,029			211,363			211,707
Accrued interest and other assets	324,719			335,967			342,481			328,318			325,086
Total Assets	$	8,409,071		$	8,359,912		$	8,322,156		$	8,203,837		$	8,118,945

LIABILITIES
Deposits
Interest-bearing demand	$	1,484,427		$	1,540,755		$	1,447,226		$	1,483,025		$	1,391,591
Savings	2,224,708			2,093,557			2,015,602			2,042,188			1,938,206
Time	1,233,631			1,378,301			1,284,059			1,342,226			1,419,456
Total interest-bearing deposits	4,942,766			5,012,613			4,746,887			4,867,439			4,749,253
Noninterest-bearing	1,499,097			1,544,598			1,453,842			1,441,068			1,386,768
Total deposits	6,441,863			6,557,211			6,200,729			6,308,507			6,136,021
Federal funds purchased and securities sold
under agreements to repurchase	88,048			93,452			87,343			86,457			89,349
FHLB short-term borrowings	760,673			602,720			946,096			759,919			856,837
Total short-term borrowings	848,721			696,172			1,033,439			846,376			946,186
Long-term debt	119,605			119,756			119,603			119,575			119,553
Total borrowed funds	968,326			815,928			1,153,042			965,951			1,065,739
Accrued interest and other liabilities	127,667			123,264			112,089			91,967			95,597
Total Liabilities	7,537,856			7,496,403			7,465,860			7,366,425			7,297,357

SHAREHOLDERS' EQUITY
Common stock	570,058			569,779			568,203			567,682			570,558
Retained earnings	442,104			430,402			419,901			406,788			395,756
Accumulated other comprehensive loss	(27,569		)	(22,436		)	(17,701		)	(21,901		)	(26,165		)
Treasury stock, at cost	(113,378		)	(114,236		)	(114,107		)	(115,157		)	(118,561		)
Total Shareholders' Equity	871,215			863,509			856,296			837,412			821,588
Total Liabilities and Shareholders' Equity	$	8,409,071		$	8,359,912		$	8,322,156		$	8,203,837		$	8,118,945



FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)

	Quarterly Averages
	March 31, 2017					December 31, 2016					March 31, 2016					Linked Qtr. Income Variance								Comparable Qtr. Income Variance
	Balance			Yield		Balance			Yield		Balance			Yield		Rate		Volume			Total			Rate			Volume			Total
Earning assets
Investments:
Investment securities	$	1,906,699		2.76	%	$	1,816,944		2.58	%	$	1,938,772		2.59	%	$	793	$	336		$	1,129		$	790		$	(364	)	$	426
Interest-bearing deposits with other banks	40,985			0.80	%	19,557			0.59	%	24,291			0.53	%	11		41			52			17			32			49
Gross loans ⁽¹⁾	5,748,033			4.64	%	5,793,647			4.57	%	5,434,950			4.59	%	996		(1,996		)	(1,000		)	666			2,892			3,558
Total earning assets	7,695,717			4.15	%	7,630,148			4.09	%	7,398,013			4.06	%	1,799		(1,618		)	181			1,473			2,560			4,033

Nonearning assets
Allowance for loan and lease losses	(58,461		)			(58,733		)			(54,882		)
Cash and due from banks	115,719					122,130					117,782
Accrued interest and other assets	656,096					666,367					658,032
Total assets	$	8,409,071				$	8,359,912				$	8,118,945

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	1,484,427		0.20	%	$	1,540,755		0.14	%	$	1,391,591		0.16	%
Savings	2,224,708			0.48	%	2,093,557			0.31	%	1,938,206			0.26	%
Time	1,233,631			1.17	%	1,378,301			1.11	%	1,419,456			1.05	%
Total interest-bearing deposits	4,942,766			0.57	%	5,012,613			0.48	%	4,749,253			0.47	%	$	1,153	$	(254	)	$	899		$	1,198		$	197		$	1,395
Borrowed funds
Short-term borrowings	848,721			0.68	%	696,172			0.52	%	946,186			0.50	%	286		231			517			444			(182		)	262
Long-term debt	119,605			5.22	%	119,756			5.10	%	119,553			5.17	%	35		(36		)	(1		)	15			(16		)	(1		)
Total borrowed funds	968,326			1.24	%	815,928			1.19	%	1,065,739			1.02	%	321		195			516			459			(198		)	261
Total interest-bearing liabilities	5,911,092			0.68	%	5,828,541			0.58	%	5,814,992			0.57	%	1,474		(59		)	1,415			1,657			(1		)	1,656

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	1,499,097					1,544,598					1,386,768
Other liabilities	127,667					123,264					95,597
Shareholders' equity	871,215					863,509					821,588
Total liabilities & shareholders' equity	$	8,409,071				$	8,359,912				$	8,118,945

Net interest income	$	68,932				$	70,166				$	66,555				$	325	$	(1,559	)	$	(1,234	)	$	(184	)	$	2,561		$	2,377
Net interest spread				3.47	%				3.51	%				3.49	%
Net interest margin				3.63	%				3.66	%				3.62	%

Tax equivalent adjustment				0.07	%				0.05	%				0.06	%
Net interest margin (fully tax equivalent)				3.70	%				3.71	%				3.68	%


⁽¹⁾ Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.



FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)


	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2017			2016			2016			2016			2016
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	57,961		$	57,618		$	56,708		$	53,732		$	53,398
Provision for loan and lease losses	367			2,761			1,687			4,037			1,655
Gross charge-offs
Commercial and industrial	1,743			1,590			296			265			479
Lease financing	0			0			0			0			0
Construction real estate	0			(2		)	64			28			3
Commercial real estate	485			990			1,135			1,596			1,262
Residential real estate	61			224			90			28			45
Home equity	180			232			475			398			340
Installment	49			60			223			30			73
Credit card	232			326			267			357			240
Total gross charge-offs	2,750			3,420			2,550			2,702			2,442
Recoveries
Commercial and industrial	262			186			327			420			222
Lease financing	0			0			0			1			0
Construction real estate	0			51			6			202			26
Commercial real estate	256			382			997			681			442
Residential real estate	9			54			38			81			63
Home equity	106			144			257			131			188
Installment	71			118			56			62			99
Credit card	44			67			92			63			81
Total recoveries	748			1,002			1,773			1,641			1,121
Total net charge-offs	2,002			2,418			777			1,061			1,321
Ending allowance for loan and lease losses	$	56,326		$	57,961		$	57,618		$	56,708		$	53,732

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.34		%	0.32		%	(0.01		)%	(0.04		)%	0.06		%
Lease financing	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Construction real estate	0.00		%	(0.06		)%	0.06		%	(0.20		)%	(0.03		)%
Commercial real estate	0.04		%	0.10		%	0.02		%	0.16		%	0.15		%
Residential real estate	0.04		%	0.13		%	0.04		%	(0.04		)%	(0.01		)%
Home equity	0.07		%	0.08		%	0.19		%	0.23		%	0.13		%
Installment	(0.18		)%	(0.47		)%	1.40		%	(0.29		)%	(0.25		)%
Credit card	1.73		%	2.35		%	1.64		%	2.85		%	1.55		%
Total net charge-offs	0.14		%	0.17		%	0.05		%	0.08		%	0.10		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans ⁽¹⁾
Commercial and industrial	$	9,249		$	2,419		$	3,201		$	2,980		$	3,917
Lease financing	102			195			214			1,167			121
Construction real estate	1,075			0			0			0			0
Commercial real estate	14,324			6,098			5,985			8,750			8,577
Residential real estate	4,520			5,251			4,759			4,824			4,243
Home equity	3,571			3,400			3,815			4,123			5,036
Installment	322			367			327			433			113
Nonaccrual loans	33,163			17,730			18,301			22,277			22,007
Accruing troubled debt restructurings (TDRs)	29,948			30,240			32,164			28,022			30,127
Total nonperforming loans	63,111			47,970			50,465			50,299			52,134
Other real estate owned (OREO)	5,300			6,284			7,577			9,302			11,939
Total nonperforming assets	68,411			54,254			58,042			59,601			64,073
Accruing loans past due 90 days or more	96			142			130			981			59
Total underperforming assets	$	68,507		$	54,396		$	58,172		$	60,582		$	64,132
Total classified assets	$	114,550		$	125,155		$	142,169		$	143,331		$	133,940

CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans	169.85		%	326.91		%	314.84		%	254.56		%	244.16		%
Nonperforming loans	89.25		%	120.83		%	114.17		%	112.74		%	103.07		%
Total ending loans	0.98		%	1.01		%	1.00		%	0.99		%	0.98		%
Nonperforming loans to total loans	1.10		%	0.83		%	0.87		%	0.88		%	0.95		%
Nonperforming assets to
Ending loans, plus OREO	1.19		%	0.94		%	1.00		%	1.04		%	1.16		%
Total assets	0.80		%	0.64		%	0.69		%	0.72		%	0.78		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.67		%	0.42		%	0.45		%	0.55		%	0.62		%
Total assets	0.45		%	0.28		%	0.31		%	0.38		%	0.41		%
Classified assets to total assets	1.34		%	1.48		%	1.70		%	1.72		%	1.63		%

(1) Nonaccrual loans include nonaccrual TDRs of $7.8 million, $5.1 million, $5.6 million, $8.0 million, and $7.5 million, as of March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.



FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2017			2016			2016			2016			2016
PER COMMON SHARE
Market Price
High	$	28.90		$	29.35		$	22.52		$	20.16		$	18.36
Low	$	26.00		$	21.05		$	18.83		$	17.49		$	14.91
Close	$	27.45		$	28.45		$	21.84		$	19.45		$	18.18

Average shares outstanding - basic	61,398,414			61,311,068			61,280,283			61,194,254			61,036,797
Average shares outstanding - diluted	62,140,384			62,080,683			62,086,067			62,027,008			61,840,247
Ending shares outstanding	62,134,285			61,979,552			61,952,873			61,959,529			61,855,027

Total shareholders' equity	$	880,065		$	865,224		$	861,137		$	846,723		$	826,587

REGULATORY CAPITAL	Preliminary
Common equity tier 1 capital	$	716,678		$	703,891		$	688,363		$	673,313		$	658,001
Common equity tier 1 capital ratio	10.59		%	10.46		%	10.20		%	10.07		%	10.16		%
Tier 1 capital	$	716,782		$	703,995		$	688,467		$	673,417		$	658,105
Tier 1 ratio	10.59		%	10.46		%	10.20		%	10.07		%	10.16		%
Total capital	$	892,161		$	881,158		$	865,248		$	849,303		$	831,924
Total capital ratio	13.19		%	13.10		%	12.82		%	12.70		%	12.84		%
Total capital in excess of minimum
requirement	$	266,367		$	300,804		$	282,996		$	272,708		$	273,135
Total risk-weighted assets	$	6,765,336		$	6,728,737		$	6,750,750		$	6,685,158		$	6,478,716
Leverage ratio	8.69		%	8.60		%	8.45		%	8.38		%	8.27		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	10.32		%	10.25		%	10.29		%	10.19		%	10.09		%
Ending tangible shareholders' equity to ending tangible assets	8.05		%	7.96		%	7.97		%	7.85		%	7.71		%
Average shareholders' equity to average assets	10.36		%	10.33		%	10.29		%	10.21		%	10.12		%
Average tangible shareholders' equity to average tangible assets	8.06		%	8.01		%	7.96		%	7.83		%	7.71		%

FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 20, 2017

Attached files

FIRST FINANCIAL BANCORP /OH/ Reports