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/	a8kearningsrelease1q18.htm

EXHIBIT 99.1

First Financial Bancorp Announces First Quarter 2018 Results

First Quarter 2018 Earnings per Diluted Share Increased 26% from First Quarter 2017

Cincinnati, Ohio - April 19, 2018 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the first quarter 2018. For the three months ended March 31, 2018, the Company reported net income of $30.5 million, or $0.49 per diluted common share. These results compare to net income of $24.8 million, or $0.40 per diluted common share, for the fourth quarter of 2017 and $24.4 million, or $0.39 per diluted common share, for the first quarter of 2017.

Return on average assets for the first quarter of 2018 was 1.40% while return on average tangible common equity was 17.17%. These compare to a return on average assets of 1.13% and return on average tangible common equity of 13.85% in the fourth quarter of 2017 and a return on average assets of 1.18% and a return on average tangible common equity of 14.98% in the first quarter of 2017.

First quarter 2018 highlights include:


•	Reported net income of $0.49 per diluted common share, 1.40% return on average assets and 17.17% return on average tangible common equity


◦	Adjusted net income of $0.52 per share, 1.49% return on average assets and 18.24% return on avergage tangible common equity as detailed in the accompanying slide presentation


•	Net interest income of $75.8 million, a $0.2 million increase compared to the linked quarter


◦	Net interest margin increased 5 basis points from the linked quarter to 3.80% on a GAAP basis, 3.84% on a fully tax equivalent basis


•	Noninterest expenses of $52.3 million, or $49.9 million as adjusted


◦	Efficiency ratio of 56.4% for the first quarter; 53.8% as adjusted


•	Loan balances increased $88.8 million, or 6.0% on an annualized basis compared to the linked quarter


•	Stable credit performance with provision expense of $2.3 million; annualized net charge-offs of 13 basis points as a percentage of average loans

Full detail of the Company’s first quarter performance is provided in the accompanying financial statements and slide presentation, which also includes a reconciliation of adjusted financial results. First quarter 2018 financial highlights for MainSource Financial Group, Inc. are also included in the accompanying slide presentation.

Claude Davis, Executive Chairman, commented, “We are extremely pleased with our strong first quarter performance, representing our 110th consecutive quarter of profitability and top-quartile level returns. We are also excited about our recent merger with MainSource which closed on April 1st. We welcome

our new colleagues from MainSource and together look forward to building an even stronger company going forward."

Archie Brown, President and Chief Executive Officer, remarked, "I echo Claude's excitement and am pleased with the financial performance of the Company during the first quarter. I am also looking forward to the opportunity to maximize synergies between two community-focused financial institutions that have already demonstrated the capability to independently produce industry-leading returns. As we complete our transition into a larger bank with greater scale and capabilities, we remain steadfast in our commitment to providing superior service and exceeding expectations for our clients, communities and shareholders."

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 20, 2018 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10118954. 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.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2018, the Company had $8.9 billion in assets, $6.1 billion in loans, $7.0 billion in deposits and $940.0 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 $2.6 billion in assets under management as of March 31, 2018. The Company’s primary operating markets are located in Ohio, Indiana and Kentucky where it operated 95 banking centers as of March 31, 2018, 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

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: (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 possibility that any of the anticipated benefits of the Company’s recent merger with MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period, or that integration of MainSource's operations with those of the Company will be materially delayed or will be more costly or difficult than expected; (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 Form 10-K for the year ended December 31, 2017, as well as its 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.

Contact Information

Investors/Analysts Media

Jamie Anderson 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, 2018

(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,
	2018			2017			2017			2017			2017
RESULTS OF OPERATIONS
Net income	$	30,506		$	24,811		$	24,826		$	22,736		$	24,414
Net earnings per share - basic	$	0.49		$	0.40		$	0.40		$	0.37		$	0.40
Net earnings per share - diluted	$	0.49		$	0.40		$	0.40		$	0.37		$	0.39
Dividends declared per share	$	0.19		$	0.17		$	0.17		$	0.17		$	0.17

KEY FINANCIAL RATIOS
Return on average assets	1.40		%	1.13		%	1.13		%	1.06		%	1.18		%
Return on average shareholders' equity	13.31		%	10.70		%	10.85		%	10.25		%	11.36		%
Return on average tangible shareholders' equity	17.17		%	13.85		%	14.10		%	13.42		%	14.98		%

Net interest margin	3.80		%	3.75		%	3.50		%	3.50		%	3.63		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.84		%	3.82		%	3.57		%	3.56		%	3.70		%

Ending shareholders' equity as a percent of ending assets	10.56		%	10.46		%	10.44		%	10.31		%	10.32		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	8.41		%	8.30		%	8.25		%	8.09		%	8.05		%
Risk-weighted assets	10.09		%	10.15		%	9.95		%	9.92		%	9.90		%

Average shareholders' equity as a percent of average assets	10.53		%	10.54		%	10.42		%	10.36		%	10.36		%
Average tangible shareholders' equity as a percent of
average tangible assets	8.36		%	8.34		%	8.21		%	8.12		%	8.06		%

Book value per share	$	15.11		$	14.99		$	14.74		$	14.45		$	14.16
Tangible book value per share	$	11.75		$	11.62		$	11.36		$	11.07		$	10.78

Common equity tier 1 ratio ⁽²⁾	10.77		%	10.63		%	10.53		%	10.54		%	10.59		%
Tier 1 ratio ⁽²⁾	10.77		%	10.63		%	10.53		%	10.54		%	10.59		%
Total capital ratio ⁽²⁾	13.17		%	13.07		%	12.98		%	13.05		%	13.19		%
Leverage ratio ⁽²⁾	9.00		%	8.84		%	8.74		%	8.69		%	8.69		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽³⁾	$	6,016,492		$	5,952,290		$	5,902,053		$	5,789,610		$	5,736,513
FDIC indemnification asset	1,502			7,413			8,932			10,327			11,520
Investment securities	2,042,781			2,020,040			2,041,785			2,035,334			1,906,699
Interest-bearing deposits with other banks	27,073			25,357			37,199			20,293			40,985
Total earning assets	$	8,087,848		$	8,005,100		$	7,989,969		$	7,855,564		$	7,695,717
Total assets	$	8,830,176		$	8,731,956		$	8,716,917		$	8,582,961		$	8,409,071
Noninterest-bearing deposits	$	1,570,572		$	1,637,228		$	1,510,032		$	1,513,995		$	1,499,097
Interest-bearing deposits	5,332,740			5,202,412			5,170,365			5,056,223			4,942,766
Total deposits	$	6,903,312		$	6,839,640		$	6,680,397		$	6,570,218		$	6,441,863
Borrowings	$	866,848		$	842,211		$	999,818		$	995,132		$	968,326
Shareholders' equity	$	929,474		$	920,194		$	908,057		$	889,604		$	871,215

CREDIT QUALITY RATIOS
Allowance to ending loans	0.89		%	0.90		%	0.91		%	0.93		%	0.98		%
Allowance to nonaccrual loans	179.57		%	224.32		%	181.07		%	150.05		%	169.85		%
Allowance to nonperforming loans	120.24		%	129.77		%	109.48		%	96.77		%	89.25		%
Nonperforming loans to total loans	0.74		%	0.69		%	0.83		%	0.97		%	1.10		%
Nonperforming assets to ending loans, plus OREO	0.76		%	0.74		%	0.89		%	1.07		%	1.19		%
Nonperforming assets to total assets	0.52		%	0.50		%	0.60		%	0.72		%	0.80		%
Classified assets to total assets	0.98		%	0.98		%	1.08		%	1.13		%	1.34		%
Net charge-offs to average loans (annualized)	0.13		%	0.02		%	0.22		%	0.13		%	0.14		%

(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 for 2018 and a 35% tax rate for 2017. 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, 2018 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)

	2018			2017
	First			Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans and leases, including fees	$	74,920		$	74,347		$	71,148		$	67,748		$	66,868		$	280,111
Investment securities
Taxable	13,670			13,212			13,150			12,598			11,608			50,568
Tax-exempt	1,657			1,571			1,537			1,457			1,353			5,918
Total investment securities interest	15,327			14,783			14,687			14,055			12,961			56,486
Other earning assets	107			(592		)	(917		)	(1,014		)	(1,001		)	(3,524		)
Total interest income	90,354			88,538			84,918			80,789			78,828			333,073

Interest expense
Deposits	10,298			9,243			10,335			8,679			6,925			35,182
Short-term borrowings	2,663			2,144			2,566			2,051			1,432			8,193
Long-term borrowings	1,581			1,537			1,538			1,539			1,539			6,153
Total interest expense	14,542			12,924			14,439			12,269			9,896			49,528
Net interest income	75,812			75,614			70,479			68,520			68,932			283,545
Provision for loan and lease losses	2,303			(205		)	2,953			467			367			3,582
Net interest income after provision for loan and lease losses	73,509			75,819			67,526			68,053			68,565			279,963

Noninterest income
Service charges on deposit accounts	5,039			5,190			5,169			4,772			4,644			19,775
Trust and wealth management fees	3,954			3,597			3,324			3,405			3,747			14,073
Bankcard income	3,394			3,390			3,272			3,501			3,135			13,298
Client derivative fees	1,757			2,047			1,779			1,489			1,103			6,418
Net gains from sales of loans	588			1,171			1,455			1,327			1,216			5,169
Net gains on sale of investment securities	0			19			276			838			516			1,649
Other	2,206			2,968			7,667			2,122			3,003			15,760
Total noninterest income	16,938			18,382			22,942			17,454			17,364			76,142

Noninterest expenses
Salaries and employee benefits	31,102			35,439			33,827			31,544			31,750			132,560
Net occupancy	4,497			4,252			4,328			4,302			4,515			17,397
Furniture and equipment	2,040			1,969			2,161			2,136			2,177			8,443
Data processing	3,672			3,768			3,455			3,501			3,298			14,022
Marketing	801			1,060			649			982			510			3,201
Communication	459			474			430			468			447			1,819
Professional services	2,198			9,766			2,030			1,469			1,758			15,023
State intangible tax	765			492			721			721			721			2,655
FDIC assessments	894			943			1,051			1,018			932			3,944
Loss (gain) - other real estate owned	77			219			237			162			24			642
Other	5,783			24,516			5,554			5,253			4,913			40,236
Total noninterest expenses	52,288			82,898			54,443			51,556			51,045			239,942
Income before income taxes	38,159			11,303			36,025			33,951			34,884			116,163
Income tax expense	7,653			(13,508		)	11,199			11,215			10,470			19,376
Net income	$	30,506		$	24,811		$	24,826		$	22,736		$	24,414		$	96,787

ADDITIONAL DATA
Net earnings per share - basic	$	0.49		$	0.40		$	0.40		$	0.37		$	0.40		$	1.57
Net earnings per share - diluted	$	0.49		$	0.40		$	0.40		$	0.37		$	0.39		$	1.56
Dividends declared per share	$	0.19		$	0.17		$	0.17		$	0.17		$	0.17		$	0.68

Return on average assets	1.40		%	1.13		%	1.13		%	1.06		%	1.18		%	1.12		%
Return on average shareholders' equity	13.31		%	10.70		%	10.85		%	10.25		%	11.36		%	10.78		%

Interest income	$	90,354		$	88,538		$	84,918		$	80,789		$	78,828		$	333,073
Tax equivalent adjustment	718			1,387			1,353			1,294			1,225			5,259
Interest income - tax equivalent	91,072			89,925			86,271			82,083			80,053			338,332
Interest expense	14,542			12,924			14,439			12,269			9,896			49,528
Net interest income - tax equivalent	$	76,530		$	77,001		$	71,832		$	69,814		$	70,157		$	288,804

Net interest margin	3.80		%	3.75		%	3.50		%	3.50		%	3.63		%	3.59		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.84		%	3.82		%	3.57		%	3.56		%	3.70		%	3.66		%

Full-time equivalent employees	1,289			1,304			1,363			1,429			1,424

(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 for 2018 and a 35% tax rate for 2017. 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
	2018			2017			2017			2017			2017			Linked Qtr.		Comparable Qtr.
ASSETS
Cash and due from banks	$	116,581		$	150,650		$	117,840		$	117,478		$	117,914		(22.6	)%	(1.1	)%
Interest-bearing deposits with other banks	10,200			33,974			34,787			29,839			39,058			(70.0	)%	(73.9	)%
Investment securities available-for-sale	1,359,381			1,349,408			1,286,770			1,298,578			1,220,046			0.7	%	11.4	%
Investment securities held-to-maturity	633,722			654,008			669,816			696,269			730,796			(3.1	)%	(13.3	)%
Other investments	53,070			53,140			53,198			53,285			50,996			(0.1	)%	4.1	%
Loans held for sale	8,048			11,502			16,466			11,939			7,657			(30.0	)%	5.1	%
Loans and leases
Commercial and industrial	1,943,741			1,912,743			1,886,093			1,824,589			1,779,635			1.6	%	9.2	%
Lease financing	81,617			89,347			86,014			88,152			88,888			(8.7	)%	(8.2	)%
Construction real estate	494,665			467,730			420,941			443,112			446,332			5.8	%	10.8	%
Commercial real estate	2,544,051			2,490,091			2,523,387			2,471,655			2,398,235			2.2	%	6.1	%
Residential real estate	468,584			471,391			477,964			490,398			486,601			(0.6	)%	(3.7	)%
Home equity	483,643			493,604			494,342			464,066			458,974			(2.0	)%	5.4	%
Installment	39,248			41,586			43,650			47,654			52,063			(5.6	)%	(24.6	)%
Credit card	46,472			46,691			44,646			44,139			43,354			(0.5	)%	7.2	%
Total loans	6,102,021			6,013,183			5,977,037			5,873,765			5,754,082			1.5	%	6.0	%
Less:
Allowance for loan and lease losses	54,380			54,021			54,534			54,873			56,326			0.7	%	(3.5	)%
Net loans	6,047,641			5,959,162			5,922,503			5,818,892			5,697,756			1.5	%	6.1	%
Premises and equipment	127,046			125,036			126,790			128,956			131,808			1.6	%	(3.6	)%
Goodwill and other intangibles	209,053			209,379			209,730			210,045			210,324			(0.2	)%	(0.6	)%
Accrued interest and other assets	333,687			350,664			323,789			344,761			324,815			(4.8	)%	2.7	%
Total Assets	$	8,898,429		$	8,896,923		$	8,761,689		$	8,710,042		$	8,531,170		0.0	%	4.3	%

LIABILITIES
Deposits
Interest-bearing demand	$	1,442,399		$	1,453,463		$	1,518,011		$	1,496,173		$	1,494,892		(0.8	)%	(3.5	)%
Savings	2,450,196			2,462,420			2,434,086			2,398,262			2,284,821			(0.5	)%	7.2	%
Time	1,545,273			1,317,105			1,188,597			1,097,911			1,202,563			17.3	%	28.5	%
Total interest-bearing deposits	5,437,868			5,232,988			5,140,694			4,992,346			4,982,276			3.9	%	9.1	%
Noninterest-bearing	1,572,636			1,662,058			1,585,396			1,476,563			1,547,600			(5.4	)%	1.6	%
Total deposits	7,010,504			6,895,046			6,726,090			6,468,909			6,529,876			1.7	%	7.4	%
Federal funds purchased and securities sold
under agreements to repurchase	56,732			72,265			45,532			130,633			52,484			(21.5	)%	8.1	%
FHLB short-term borrowings	601,600			742,300			818,200			957,700			806,700			(19.0	)%	(25.4	)%
Total short-term borrowings	658,332			814,565			863,732			1,088,333			859,184			(19.2	)%	(23.4	)%
Long-term debt	169,695			119,654			119,615			119,669			119,629			41.8	%	41.9	%
Total borrowed funds	828,027			934,219			983,347			1,208,002			978,813			(11.4	)%	(15.4	)%
Accrued interest and other liabilities	119,913			136,994			137,298			135,014			142,416			(12.5	)%	(15.8	)%
Total Liabilities	7,958,444			7,966,259			7,846,735			7,811,925			7,651,105			(0.1	)%	4.0	%

SHAREHOLDERS' EQUITY
Common stock	571,457			573,109			571,750			569,302			567,911			(0.3	)%	0.6	%
Retained earnings	515,498			491,847			477,588			463,250			451,073			4.8	%	14.3	%
Accumulated other comprehensive loss	(34,683		)	(20,390		)	(20,379		)	(22,222		)	(26,639		)	70.1	%	30.2	%
Treasury stock, at cost	(112,287		)	(113,902		)	(114,005		)	(112,213		)	(112,280		)	(1.4	)%	0.0	%
Total Shareholders' Equity	939,985			930,664			914,954			898,117			880,065			1.0	%	6.8	%
Total Liabilities and Shareholders' Equity	$	8,898,429		$	8,896,923		$	8,761,689		$	8,710,042		$	8,531,170		0.0	%	4.3	%



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

	Quarterly Averages
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2018			2017			2017			2017			2017
ASSETS
Cash and due from banks	$	116,095		$	121,792		$	111,984		$	116,123		$	115,719
Interest-bearing deposits with other banks	27,073			25,357			37,199			20,293			40,985
Investment securities	2,042,781			2,020,040			2,041,785			2,035,334			1,906,699
Loans held for sale	9,171			12,572			12,705			9,243			8,125
Loans and leases
Commercial and industrial	1,897,726			1,857,546			1,843,677			1,778,523			1,782,829
Lease financing	86,755			84,635			85,649			86,880			89,549
Construction real estate	483,930			449,195			408,373			447,716			414,038
Commercial real estate	2,495,604			2,487,149			2,497,170			2,418,355			2,390,004
Residential real estate	468,855			477,454			489,508			490,709			497,412
Home equity	487,073			494,804			473,988			462,431			459,821
Installment	40,409			42,283			45,911			51,275			50,722
Credit card	46,969			46,652			45,072			44,478			44,013
Total loans	6,007,321			5,939,718			5,889,348			5,780,367			5,728,388
Less:
Allowance for loan and lease losses	55,016			55,279			55,326			57,379			58,461
Net loans	5,952,305			5,884,439			5,834,022			5,722,988			5,669,927
Premises and equipment	126,016			126,310			128,539			131,654			132,384
Goodwill and other intangibles	209,244			209,571			209,933			210,215			210,513
Accrued interest and other assets	347,491			331,875			340,750			337,111			324,719
Total Assets	$	8,830,176		$	8,731,956		$	8,716,917		$	8,582,961		$	8,409,071

LIABILITIES
Deposits
Interest-bearing demand	$	1,415,603		$	1,502,245		$	1,494,367		$	1,483,186		$	1,484,427
Savings	2,450,697			2,518,771			2,494,592			2,408,950			2,224,708
Time	1,466,440			1,181,396			1,181,406			1,164,087			1,233,631
Total interest-bearing deposits	5,332,740			5,202,412			5,170,365			5,056,223			4,942,766
Noninterest-bearing	1,570,572			1,637,228			1,510,032			1,513,995			1,499,097
Total deposits	6,903,312			6,839,640			6,680,397			6,570,218			6,441,863
Federal funds purchased and securities sold
under agreements to repurchase	72,865			57,131			71,315			62,893			88,048
FHLB short-term borrowings	667,641			660,859			808,842			812,588			760,673
Total short-term borrowings	740,506			717,990			880,157			875,481			848,721
Long-term debt	126,342			124,221			119,661			119,651			119,605
Total borrowed funds	866,848			842,211			999,818			995,132			968,326
Accrued interest and other liabilities	130,542			129,911			128,645			128,007			127,667
Total Liabilities	7,900,702			7,811,762			7,808,860			7,693,357			7,537,856

SHAREHOLDERS' EQUITY
Common stock	572,915			572,392			570,216			568,654			570,058
Retained earnings	503,140			483,554			470,591			456,648			442,104
Accumulated other comprehensive loss	(33,285		)	(21,740		)	(19,940		)	(23,414		)	(27,569		)
Treasury stock, at cost	(113,296		)	(114,012		)	(112,810		)	(112,284		)	(113,378		)
Total Shareholders' Equity	929,474			920,194			908,057			889,604			871,215
Total Liabilities and Shareholders' Equity	$	8,830,176		$	8,731,956		$	8,716,917		$	8,582,961		$	8,409,071



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

	Quarterly Averages
	March 31, 2018					December 31, 2017					March 31, 2017					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	$	2,042,781		3.04	%	$	2,020,040		2.90	%	$	1,906,699		2.76	%	$	710	$	(166	)	$	544	$	1,345		$	1,021		$	2,366
Interest-bearing deposits with other banks	27,073			1.60	%	25,357			1.41	%	40,985			0.80	%	12		5			17		81			(55		)	26
Gross loans ⁽¹⁾	6,017,994			5.05	%	5,959,703			4.90	%	5,748,033			4.64	%	2,178		(923		)	1,255		5,773			3,361			9,134
Total earning assets	8,087,848			4.53	%	8,005,100			4.39	%	7,695,717			4.15	%	2,901		(1,085		)	1,816		7,199			4,327			11,526

Nonearning assets
Allowance for loan and lease losses	(55,016		)			(55,279		)			(58,461		)
Cash and due from banks	116,095					121,792					115,719
Accrued interest and other assets	681,249					660,343					656,096
Total assets	$	8,830,176				$	8,731,956				$	8,409,071

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	1,415,603		0.37	%	$	1,502,245		0.34	%	$	1,484,427		0.20	%
Savings	2,450,697			0.64	%	2,518,771			0.63	%	2,224,708			0.48	%
Time	1,466,440			1.41	%	1,181,396			1.33	%	1,233,631			1.17	%
Total interest-bearing deposits	5,332,740			0.78	%	5,202,412			0.70	%	4,942,766			0.57	%	$	1,027	$	28		$	1,055	$	2,620		$	753		$	3,373
Borrowed funds
Short-term borrowings	740,506			1.46	%	717,990			1.18	%	848,721			0.68	%	495		24			519		1,620			(389		)	1,231
Long-term debt	126,342			5.07	%	124,221			4.91	%	119,605			5.22	%	52		(8		)	44		(42		)	84			42
Total borrowed funds	866,848			1.99	%	842,211			1.73	%	968,326			1.24	%	547		16			563		1,578			(305		)	1,273
Total interest-bearing liabilities	6,199,588			0.95	%	6,044,623			0.85	%	5,911,092			0.68	%	1,574		44			1,618		4,198			448			4,646

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	1,570,572					1,637,228					1,499,097
Other liabilities	130,542					129,911					127,667
Shareholders' equity	929,474					920,194					871,215
Total liabilities & shareholders' equity	$	8,830,176				$	8,731,956				$	8,409,071

Net interest income	$	75,812				$	75,614				$	68,932				$	1,327	$	(1,129	)	$	198	$	3,001		$	3,879		$	6,880
Net interest spread				3.58	%				3.54	%				3.47	%
Net interest margin				3.80	%				3.75	%				3.63	%

Tax equivalent adjustment				0.04	%				0.07	%				0.07	%
Net interest margin (fully tax equivalent)				3.84	%				3.82	%				3.70	%


⁽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,
	2018			2017			2017			2017			2017
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	54,021		$	54,534		$	54,873		$	56,326		$	57,961
Provision for loan and lease losses	2,303			(205		)	2,953			467			367
Gross charge-offs
Commercial and industrial	885			1,264			4,122			3,065			1,743
Construction real estate	0			1			0			0			0
Commercial real estate	2,176			10			58			485			485
Residential real estate	96			128			23			223			61
Home equity	242			278			71			384			180
Installment	16			26			24			126			49
Credit card	254			209			201			215			232
Total gross charge-offs	3,669			1,916			4,499			4,498			2,750
Recoveries
Commercial and industrial	436			370			325			693			262
Lease financing	0			0			0			1			0
Construction real estate	0			0			0			89			0
Commercial real estate	752			480			585			1,398			256
Residential real estate	26			77			70			59			9
Home equity	429			589			110			222			106
Installment	48			46			74			43			71
Credit card	34			46			43			73			44
Total recoveries	1,725			1,608			1,207			2,578			748
Total net charge-offs	1,944			308			3,292			1,920			2,002
Ending allowance for loan and lease losses	$	54,380		$	54,021		$	54,534		$	54,873		$	56,326

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.10		%	0.19		%	0.82		%	0.53		%	0.34		%
Lease financing	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Construction real estate	0.00		%	0.00		%	0.00		%	(0.08		)%	0.00		%
Commercial real estate	0.23		%	(0.07		)%	(0.08		)%	(0.15		)%	0.04		%
Residential real estate	0.06		%	0.04		%	(0.04		)%	0.13		%	0.04		%
Home equity	(0.16		)%	(0.25		)%	(0.03		)%	0.14		%	0.07		%
Installment	(0.32		)%	(0.19		)%	(0.43		)%	0.65		%	(0.18		)%
Credit card	1.90		%	1.39		%	1.39		%	1.28		%	1.73		%
Total net charge-offs	0.13		%	0.02		%	0.22		%	0.13		%	0.14		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans ⁽¹⁾
Commercial and industrial	$	6,275		$	5,229		$	9,026		$	15,099		$	9,249
Lease financing	0			82			87			94			102
Construction real estate	26			29			824			1,075			1,075
Commercial real estate	16,878			10,616			12,244			12,617			14,324
Residential real estate	3,324			4,140			4,333			4,442			4,520
Home equity	3,484			3,743			3,364			2,937			3,571
Installment	296			243			240			307			322
Nonaccrual loans	30,283			24,082			30,118			36,571			33,163
Accruing troubled debt restructurings (TDRs)	14,943			17,545			19,692			20,135			29,948
Total nonperforming loans	45,226			41,627			49,810			56,706			63,111
Other real estate owned (OREO)	1,065			2,781			3,116			5,961			5,300
Total nonperforming assets	46,291			44,408			52,926			62,667			68,411
Accruing loans past due 90 days or more	529			61			84			124			96
Total underperforming assets	$	46,820		$	44,469		$	53,010		$	62,791		$	68,507
Total classified assets	$	87,577		$	87,293		$	94,320		$	98,391		$	114,550

CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans	179.57		%	224.32		%	181.07		%	150.05		%	169.85		%
Nonperforming loans	120.24		%	129.77		%	109.48		%	96.77		%	89.25		%
Total ending loans	0.89		%	0.90		%	0.91		%	0.93		%	0.98		%
Nonperforming loans to total loans	0.74		%	0.69		%	0.83		%	0.97		%	1.10		%
Nonperforming assets to
Ending loans, plus OREO	0.76		%	0.74		%	0.89		%	1.07		%	1.19		%
Total assets	0.52		%	0.50		%	0.60		%	0.72		%	0.80		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.51		%	0.45		%	0.56		%	0.72		%	0.67		%
Total assets	0.35		%	0.30		%	0.38		%	0.49		%	0.45		%
Classified assets to total assets	0.98		%	0.98		%	1.08		%	1.13		%	1.34		%

(1) Nonaccrual loans include nonaccrual TDRs of $6.0 million, $5.5 million, $9.1 million, $9.4 million, and $7.8 million as of March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.



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

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2018			2017			2017			2017			2017
PER COMMON SHARE
Market Price
High	$	29.35		$	29.15		$	28.50		$	28.95		$	28.90
Low	$	26.40		$	25.30		$	23.10		$	25.05		$	26.00
Close	$	29.35		$	26.35		$	26.15		$	27.70		$	27.45

Average shares outstanding - basic	61,654,686			61,595,629			61,577,619			61,543,478			61,398,414
Average shares outstanding - diluted	62,180,744			62,131,840			62,189,637			62,234,022			62,140,384
Ending shares outstanding	62,213,823			62,069,087			62,061,465			62,141,071			62,134,285

Total shareholders' equity	$	939,985		$	930,664		$	914,954		$	898,117		$	880,065

REGULATORY CAPITAL	Preliminary
Common equity tier 1 capital	$	779,491		$	755,735		$	746,730		$	731,024		$	716,678
Common equity tier 1 capital ratio	10.77		%	10.63		%	10.53		%	10.54		%	10.59		%
Tier 1 capital	$	779,595		$	755,839		$	746,834		$	731,128		$	716,782
Tier 1 ratio	10.77		%	10.63		%	10.53		%	10.54		%	10.59		%
Total capital	$	953,243		$	929,148		$	920,642		$	905,222		$	892,161
Total capital ratio	13.17		%	13.07		%	12.98		%	13.05		%	13.19		%
Total capital in excess of minimum
requirement	$	238,221		$	271,600		$	264,751		$	263,580		$	266,367
Total risk-weighted assets	$	7,240,731		$	7,108,629		$	7,090,714		$	6,936,665		$	6,765,336
Leverage ratio	9.00		%	8.84		%	8.74		%	8.69		%	8.69		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	10.56		%	10.46		%	10.44		%	10.31		%	10.32		%
Ending tangible shareholders' equity to ending tangible assets	8.41		%	8.30		%	8.25		%	8.09		%	8.05		%
Average shareholders' equity to average assets	10.53		%	10.54		%	10.42		%	10.36		%	10.36		%
Average tangible shareholders' equity to average tangible assets	8.36		%	8.34		%	8.21		%	8.12		%	8.06		%

FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 19, 2018

Attached files

FIRST FINANCIAL BANCORP /OH/ Reports