FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 24, 2020

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8-K - FORM 8-K - FIRST FINANCIAL BANCORP /OH/tm2016593-1_8k.htm
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Exhibit 99.1

 

 

Selected Financial Information

 

March 31, 2020

 

(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, 
   2020   2019   2019   2019   2019 
RESULTS OF OPERATIONS                    
Net income  $28,628   $48,677   $50,856   $52,703   $45,839 
Net earnings per share - basic  $0.29   $0.49   $0.52   $0.54   $0.47 
Net earnings per share - diluted  $0.29   $0.49   $0.51   $0.53   $0.47 
Dividends declared per share  $0.23   $0.23   $0.23   $0.22   $0.22 
                          
KEY FINANCIAL RATIOS                         
Return on average assets   0.79%   1.34%   1.41%   1.50%   1.33%
Return on average shareholders' equity   5.21%   8.60%   9.13%   9.85%   8.88%
Return on average tangible shareholders' equity   9.71%   15.84%   16.15%   17.33%   15.95%
                          
Net interest margin   3.71%   3.84%   3.91%   3.99%   4.05%
Net interest margin (fully tax equivalent) (1)   3.77%   3.89%   3.96%   4.04%   4.10%
                          
Ending shareholders' equity as a percent of ending assets   14.47%   15.49%   15.62%   15.16%   15.14%
Ending tangible shareholders' equity as a percent of:                         
Ending tangible assets   8.25%   9.07%   9.17%   9.34%   9.15%
Risk-weighted assets   10.50%   11.09%   11.34%   11.82%   11.61%
                          
Average shareholders' equity as a percent of average assets   15.21%   15.53%   15.43%   15.22%   15.01%
Average tangible shareholders' equity as a percent of average tangible assets   8.79%   9.07%   9.35%   9.26%   8.95%
                          
Book value per share  $22.25   $22.82   $22.59   $22.18   $21.60 
Tangible book value per share  $11.82   $12.42   $12.33   $12.79   $12.19 
                          
Common equity tier 1 ratio (2)   11.27%   11.30%   11.52%   12.00%   12.03%
Tier 1 ratio (2)   11.66%   11.69%   11.91%   12.40%   12.43%
Total capital ratio (2)   13.54%   13.39%   13.62%   14.20%   14.24%
Leverage ratio (2)   9.49%   9.58%   9.75%   10.02%   9.84%
                          
AVERAGE BALANCE SHEET ITEMS                         
Loans (3)  $9,220,643   $9,149,222   $9,014,092   $8,852,662   $8,773,310 
Investment securities   3,115,723    3,102,867    3,290,666    3,408,994    3,355,732 
Interest-bearing deposits with other banks   39,332    36,672    38,569    33,255    34,709 
Total earning assets  $12,375,698   $12,288,761   $12,343,327   $12,294,911   $12,163,751 
Total assets  $14,524,422   $14,460,288   $14,320,514   $14,102,733   $13,952,551 
Noninterest-bearing deposits  $2,643,240   $2,638,908   $2,513,458   $2,484,214   $2,457,587 
Interest-bearing deposits   7,590,791    7,583,531    7,504,708    7,612,146    7,610,092 
Total deposits  $10,234,031   $10,222,439   $10,018,166   $10,096,360   $10,067,679 
Borrowings  $1,735,767   $1,613,696   $1,816,983   $1,656,570   $1,587,068 
Shareholders' equity  $2,209,733   $2,245,107   $2,210,327   $2,146,997   $2,094,234 
                          
CREDIT QUALITY RATIOS                         
Allowance to ending loans   1.55%   0.63%   0.62%   0.69%   0.64%
Allowance to nonaccrual loans   296.51%   119.69%   93.18%   119.86%   95.40%
Allowance to nonperforming loans   203.42%   96.73%   71.46%   69.33%   68.94%
Nonperforming loans to total loans   0.76%   0.65%   0.87%   0.99%   0.93%
Nonperforming assets to ending loans, plus OREO   0.78%   0.67%   0.89%   1.00%   0.95%
Nonperforming assets to total assets   0.48%   0.42%   0.56%   0.62%   0.60%
Classified assets to total assets   0.83%   0.62%   0.92%   1.02%   1.01%
Net charge-offs to average loans (annualized)   (0.04)%   0.15%   0.45%   0.08%   0.64%

 

(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 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, 2020 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

 

2

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

 

   2020   2019 
   First   Fourth   Third   Second   First   Full 
   Quarter   Quarter   Quarter   Quarter   Quarter   Year 
Interest income                              
Loans and leases, including fees  $115,775   $122,802   $126,786   $126,365   $123,056   $499,009 
Investment securities                              
Taxable   19,005    20,137    22,180    23,616    24,235    90,168 
Tax-exempt   4,582    4,545    4,457    4,336    4,258    17,596 
Total investment securities interest   23,587    24,682    26,637    27,952    28,493    107,764 
Other earning assets   142    167    222    206    210    805 
Total interest income   139,504    147,651    153,645    154,523    151,759    607,578 
                               
Interest expense                              
Deposits   16,365    19,026    20,151    20,612    19,243    79,032 
Short-term borrowings   5,087    5,430    7,199    6,646    5,960    25,235 
Long-term borrowings   3,770    4,293    4,760    4,963    5,041    19,057 
Total interest expense   25,222    28,749    32,110    32,221    30,244    123,324 
Net interest income   114,282    118,902    121,535    122,302    121,515    484,254 
Provision for credit losses-loans and leases (1)   23,880    4,629    5,228    6,658    14,083    30,598 
Provision for credit losses-unfunded commitments (1)   1,568    177    (216)   (132)   6    (165)
Net interest income after provision for credit losses   88,834    114,096    116,523    115,776    107,426    453,821 
                               
Noninterest income                              
Service charges on deposit accounts   8,435    9,343    9,874    9,819    8,903    37,939 
Trust and wealth management fees   4,469    3,913    3,718    3,943    4,070    15,644 
Bankcard income   2,698    3,405    3,316    6,497    5,586    18,804 
Client derivative fees   3,105    4,194    4,859    4,905    1,704    15,662 
Foreign exchange income   9,966    6,014    1,708    17    0    7,739 
Net gains from sales of loans   2,831    4,723    4,806    3,432    1,890    14,851 
Net gains on sale of investment securities   (59)   (296)   105    (37)   (178)   (406)
Other   3,939    5,472    4,754    6,062    4,852    21,140 
Total noninterest income   35,384    36,768    33,140    34,638    26,827    131,373 
                               
Noninterest expenses                              
Salaries and employee benefits   54,822    53,952    53,212    53,985    47,912    209,061 
Net occupancy   6,104    6,334    5,509    5,596    6,630    24,069 
Furniture and equipment   4,053    4,145    4,120    4,222    3,416    15,903 
Data processing   6,389    5,996    5,774    4,984    5,127    21,881 
Marketing   1,220    1,980    1,346    1,976    1,606    6,908 
Communication   890    882    910    747    728    3,267 
Professional services   2,275    2,192    4,771    2,039    2,252    11,254 
State intangible tax   1,516    1,767    1,445    1,307    1,310    5,829 
FDIC assessments   1,405    1,055    (1,097)   1,065    950    1,973 
Intangible amortization   2,792    3,150    2,432    2,044    2,045    9,671 
Other   8,200    11,434    8,020    6,545    6,517    32,516 
Total noninterest expenses   89,666    92,887    86,442    84,510    78,493    342,332 
Income before income taxes   34,552    57,977    63,221    65,904    55,760    242,862 
Income tax expense (benefit)   5,924    9,300    12,365    13,201    9,921    44,787 
Net income  $28,628   $48,677   $50,856   $52,703   $45,839   $198,075 
                               
ADDITIONAL DATA                              
Net earnings per share - basic  $0.29   $0.49   $0.52   $0.54   $0.47   $2.01 
Net earnings per share - diluted  $0.29   $0.49   $0.51   $0.53   $0.47   $2.00 
Dividends declared per share  $0.23   $0.23   $0.23   $0.22   $0.22   $0.90 
                               
Return on average assets   0.79%   1.34%   1.41%   1.50%   1.33%   1.39%
Return on average shareholders' equity   5.21%   8.60%   9.13%   9.85%   8.88%   9.11%
                               
Interest income  $139,504   $147,651   $153,645   $154,523   $151,759   $607,578 
Tax equivalent adjustment   1,624    1,630    1,759    1,416    1,523    6,328 
Interest income - tax equivalent   141,128    149,281    155,404    155,939    153,282    613,906 
Interest expense   25,222    28,749    32,110    32,221    30,244    123,324 
Net interest income - tax equivalent  $115,906   $120,532   $123,294   $123,718   $123,038   $490,582 
                               
Net interest margin   3.71%   3.84%   3.91%   3.99%   4.05%   3.95%
Net interest margin (fully tax equivalent) (2)   3.77%   3.89%   3.96%   4.04%   4.10%   4.00%
                               
Full-time equivalent employees   2,067    2,065    2,064    2,076    2,087      

 

(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.

(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 income on a fully tax equivalent basis.  Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

3

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

 

                             
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   % Change   % Change 
   2020   2019   2019   2019   2019   Linked Qtr.   Comp Qtr. 
ASSETS                                   
Cash and due from banks  $261,892   $200,691   $242,482   $169,694   $169,004    30.5%   55.0%
Interest-bearing deposits with other banks   71,071    56,948    39,669    101,668    50,224    24.8%   41.5%
Investment securities available-for-sale   2,908,688    2,852,084    2,850,502    3,152,970    3,113,811    2.0%   (6.6)%
Investment securities held-to-maturity   136,744    142,862    148,778    154,327    158,305    (4.3)%   (13.6)%
Other investments   143,581    125,020    124,965    127,439    115,731    14.8%   24.1%
Loans held for sale   27,334    13,680    23,528    20,244    8,217    99.8%   232.7%
Loans and leases                                   
Commercial and industrial   2,477,773    2,465,877    2,470,017    2,547,997    2,543,427    0.5%   (2.6)%
Lease financing   82,602    88,364    92,616    90,638    95,573    (6.5)%   (13.6)%
Construction real estate   500,311    493,182    515,960    497,683    458,113    1.4%   9.2%
Commercial real estate   4,278,257    4,194,651    4,015,908    3,903,654    3,802,179    2.0%   12.5%
Residential real estate   1,061,792    1,055,949    1,055,007    1,015,820    975,120    0.6%   8.9%
Home equity   781,243    771,869    776,885    787,139    797,118    1.2%   (2.0)%
Installment   80,085    82,589    88,275    89,149    90,689    (3.0)%   (11.7)%
Credit card   45,756    49,184    49,010    48,706    46,982    (7.0)%   (2.6)%
Total loans   9,307,819    9,201,665    9,063,678    8,980,786    8,809,201    1.2%   5.7%
Less:                                   
Allowance for credit losses (1)   143,885    57,650    56,552    61,549    56,722    149.6%   153.7%
Net loans   9,163,934    9,144,015    9,007,126    8,919,237    8,752,479    0.2%   4.7%
Premises and equipment   212,787    214,506    213,681    211,313    210,676    (0.8)%   1.0%
Goodwill   937,771    937,771    937,689    879,727    879,727    0.0%   6.6%
Other intangibles   73,258    76,201    79,506    36,349    38,571    (3.9)%   89.9%
Accrued interest and other assets   1,120,507    747,847    812,519    664,695    577,518    49.8%   94.0%
Total Assets  $15,057,567   $14,511,625   $14,480,445   $14,437,663   $14,074,263    3.8%   7.0%
                                    
LIABILITIES                                   
Deposits                                   
Interest-bearing demand  $2,498,109   $2,364,881   $2,316,301   $2,332,692   $2,235,036    5.6%   11.8%
Savings   2,978,250    2,960,979    2,924,200    2,953,114    3,100,894    0.6%   (4.0)%
Time   2,435,858    2,240,441    2,308,617    2,321,908    2,309,810    8.7%   5.5%
Total interest-bearing deposits   7,912,217    7,566,301    7,549,118    7,607,714    7,645,740    4.6%   3.5%
Noninterest-bearing   2,723,341    2,643,928    2,534,739    2,501,290    2,488,157    3.0%   9.5%
Total deposits   10,635,558    10,210,229    10,083,857    10,109,004    10,133,897    4.2%   5.0%
Federal funds purchased and securities sold under agreements to repurchase   215,824    165,181    85,286    260,621    95,015    30.7%   127.1%
FHLB short-term borrowings   1,181,900    1,151,000    1,128,900    1,052,700    952,400    2.7%   24.1%
Total short-term borrowings   1,397,724    1,316,181    1,214,186    1,313,321    1,047,415    6.2%   33.4%
Long-term debt   325,566    414,376    498,778    547,042    546,423    (21.4)%   (40.4)%
Total borrowed funds   1,723,290    1,730,557    1,712,964    1,860,363    1,593,838    (0.4)%   8.1%
Accrued interest and other liabilities   519,336    323,134    422,311    280,107    216,109    60.7%   140.3%
Total Liabilities   12,878,184    12,263,920    12,219,132    12,249,474    11,943,844    5.0%   7.8%
                                    
SHAREHOLDERS' EQUITY                                   
Common stock   1,633,950    1,640,771    1,639,333    1,623,699    1,622,554    (0.4)%   0.7%
Retained earnings   660,653    711,249    685,368    657,730    626,408    (7.1)%   5.5%
Accumulated other comprehensive income (loss)   11,788    13,323    15,450    5,193    (19,635)   (11.5)%   160.0%
Treasury stock, at cost   (127,008)   (117,638)   (78,838)   (98,433)   (98,908)   8.0%   28.4%
Total Shareholders' Equity   2,179,383    2,247,705    2,261,313    2,188,189    2,130,419    (3.0)%   2.3%
Total Liabilities and Shareholders' Equity  $15,057,567   $14,511,625   $14,480,445   $14,437,663   $14,074,263    3.8%   7.0%

 

(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.

 

4

 

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

 

   Quarterly Averages 
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
   2020   2019   2019   2019   2019 
ASSETS                    
Cash and due from banks  $235,696   $221,060   $191,000   $173,278   $181,695 
Interest-bearing deposits with other banks   39,332    36,672    38,569    33,255    34,709 
Investment securities   3,115,723    3,102,867    3,290,666    3,408,994    3,355,732 
Loans held for sale   13,174    21,050    18,197    13,258    6,392 
Loans and leases                         
Commercial and industrial   2,450,893    2,469,810    2,509,782    2,533,981    2,509,274 
Lease financing   85,782    91,225    94,858    94,458    91,043 
Construction real estate   501,471    501,892    509,742    457,962    496,153 
Commercial real estate   4,209,345    4,102,288    3,925,028    3,834,404    3,762,314 
Residential real estate   1,055,456    1,053,707    1,035,975    989,923    961,584 
Home equity   773,082    773,119    781,340    789,087    807,768 
Installment   81,234    85,515    88,760    89,778    91,270 
Credit card   50,206    50,616    50,410    49,811    47,512 
Total loans   9,207,469    9,128,172    8,995,895    8,839,404    8,766,918 
Less:                         
Allowance for credit losses (1)   121,126    56,649    61,911    58,335    57,088 
Net loans   9,086,343    9,071,523    8,933,984    8,781,069    8,709,830 
Premises and equipment   215,545    215,171    215,671    211,714    213,208 
Goodwill   937,771    937,710    899,888    879,726    878,541 
Other intangibles   75,014    78,190    51,365    37,666    39,900 
Accrued interest and other assets   805,824    776,045    681,174    563,773    532,544 
Total Assets  $14,524,422   $14,460,288   $14,320,514   $14,102,733   $13,952,551 
                          
LIABILITIES                         
Deposits                         
Interest-bearing demand  $2,418,193   $2,373,962   $2,325,405   $2,334,322   $2,269,948 
Savings   2,976,518    2,995,395    2,945,076    3,057,100    3,115,557 
Time   2,196,080    2,214,174    2,234,227    2,220,724    2,224,587 
Total interest-bearing deposits   7,590,791    7,583,531    7,504,708    7,612,146    7,610,092 
Noninterest-bearing   2,643,240    2,638,908    2,513,458    2,484,214    2,457,587 
Total deposits   10,234,031    10,222,439    10,018,166    10,096,360    10,067,679 
Federal funds purchased and securities sold under agreements to repurchase   164,093    206,800    185,156    126,872    103,147 
FHLB short-term borrowings   1,189,765    952,625    1,112,091    982,993    913,974 
Total short-term borrowings   1,353,858    1,159,425    1,297,247    1,109,865    1,017,121 
Long-term debt   381,909    454,271    519,736    546,705    569,947 
Total borrowed funds   1,735,767    1,613,696    1,816,983    1,656,570    1,587,068 
Accrued interest and other liabilities   344,891    379,046    275,038    202,806    203,570 
Total Liabilities   12,314,689    12,215,181    12,110,187    11,955,736    11,858,317 
                          
SHAREHOLDERS' EQUITY                         
Common stock   1,638,851    1,640,066    1,629,286    1,622,994    1,625,228 
Retained earnings   660,108    691,236    662,899    635,629    610,737 
Accumulated other comprehensive loss   31,200    13,986    11,985    (12,889)   (39,796)
Treasury stock, at cost   (120,426)   (100,181)   (93,843)   (98,737)   (101,935)
Total Shareholders' Equity   2,209,733    2,245,107    2,210,327    2,146,997    2,094,234 
Total Liabilities and Shareholders' Equity  $14,524,422   $14,460,288   $14,320,514   $14,102,733   $13,952,551 

 

(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.

 

5

 

 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)

 

   Quarterly Averages                         
   March 31, 2020   December 31, 2019   March 31, 2019   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  $3,115,723    3.04%  $3,102,867    3.16%  $3,355,732    3.44%  $(934)  $(161)  $(1,095)  $(3,368)  $(1,538)  $(4,906)
Interest-bearing deposits with other banks   39,332    1.45%   36,672    1.81%   34,709    2.45%   (33)   8    (25)   (86)   18    (68)
Gross loans (1)   9,220,643    5.04%   9,149,222    5.33%   8,773,310    5.69%   (6,661)   (366)   (7,027)   (14,108)   6,827    (7,281)
Total earning assets   12,375,698    4.52%   12,288,761    4.77%   12,163,751    5.06%   (7,628)   (519)   (8,147)   (17,562)   5,307    (12,255)
                                                             
Nonearning assets                                                            
Allowance for credit losses   (121,126)        (56,649)        (57,088)                                   
Cash and due from banks   235,696         221,060         181,695                                    
Accrued interest and other assets   2,034,154         2,007,116         1,664,193                                    
Total assets  $14,524,422        $14,460,288        $13,952,551                                    
                                                             
Interest-bearing liabilities                                                            
Deposits:                                                            
Interest-bearing demand  $2,418,193    0.45%  $2,373,962    0.53%  $2,269,948    0.50%                              
Savings   2,976,518    0.45%   2,995,395    0.60%   3,115,557    0.76%                              
Time   2,196,080    1.88%   2,214,174    2.03%   2,224,587    1.94%                              
Total interest-bearing deposits   7,590,791    0.86%   7,583,531    1.00%   7,610,092    1.03%  $(2,497)  $(164)  $(2,661)  $(3,017)  $139   $(2,878)
Borrowed funds                                                            
Short-term borrowings   1,353,858    1.51%   1,159,425    1.86%   1,017,121    2.38%   (1,026)   683    (343)   (2,180)   1,307    (873)
Long-term debt   381,909    3.96%   454,271    3.75%   569,947    3.59%   241    (764)   (523)   523    (1,794)   (1,271)
Total borrowed funds   1,735,767    2.05%   1,613,696    2.39%   1,587,068    2.81%   (785)   (81)   (866)   (1,657)   (487)   (2,144)
Total interest-bearing liabilities   9,326,558    1.08%   9,197,227    1.24%   9,197,160    1.33%   (3,282)   (245)   (3,527)   (4,674)   (348)   (5,022)
                                                             
Noninterest-bearing liabilities                                                            
Noninterest-bearing demand deposits   2,643,240         2,638,908         2,457,587                                    
Other liabilities   344,891         379,046         203,570                                    
Shareholders' equity   2,209,733         2,245,107         2,094,234                                    
Total liabilities & shareholders' equity  $14,524,422        $14,460,288        $13,952,551                                    
                                                             
Net interest income  $114,282        $118,902        $121,515        $(4,346)  $(274)  $(4,620)  $(12,888)  $5,655   $(7,233)
Net interest spread        3.44%        3.53%        3.73%                              
Net interest margin        3.71%        3.84%        4.05%                              
                                                             
Tax equivalent adjustment        0.06%        0.05%        0.05%                              
Net interest margin (fully tax equivalent)        3.77%        3.89%        4.10%                              

 

(1) Loans held for sale and nonaccrual loans are included in gross loans.

 

6

 

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)

 

   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
   2020   2019   2019   2019   2019 
ALLOWANCE FOR CREDIT LOSS ACTIVITY                         
Balance at beginning of period, prior to adoption of ASC 326  $57,650   $56,552   $61,549   $56,722   $56,542 
Impact of adopting ASC 326   61,505    0    0    0    0 
Provision for credit losses   23,880    4,629    5,228    6,658    14,083 
Gross charge-offs                         
Commercial and industrial   1,091    2,919    9,556    1,873    12,328 
Lease financing   0    62    0    0    100 
Construction real estate   0    0    0    0    0 
Commercial real estate   4    1,854    535    86    1,214 
Residential real estate   115    167    278    150    82 
Home equity   267    807    627    689    468 
Installment   61    31    65    78    49 
Credit card   311    319    598    289    341 
Total gross charge-offs   1,849    6,159    11,659    3,165    14,582 
Recoveries                         
Commercial and industrial   2,000    1,796    556    291    240 
Lease financing   0    0    0    0    0 
Construction real estate   0    0    0    5    63 
Commercial real estate   234    439    347    254    73 
Residential real estate   52    72    64    101    36 
Home equity   339    243    335    572    185 
Installment   31    49    93    61    48 
Credit card   43    29    39    50    34 
Total recoveries   2,699    2,628    1,434    1,334    679 
Total net charge-offs   (850)   3,531    10,225    1,831    13,903 
Ending allowance for credit losses  $143,885   $57,650   $56,552   $61,549   $56,722 
                          
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)                         
Commercial and industrial   (0.15)%   0.18%   1.42%   0.25%   1.95%
Lease financing   0.00%   0.27%   0.00%   0.00%   0.45%
Construction real estate   0.00%   0.00%   0.00%   0.00%   (0.05)%
Commercial real estate   (0.02)%   0.14%   0.02%   (0.02)%   0.12%
Residential real estate   0.02%   0.04%   0.08%   0.02%   0.02%
Home equity   (0.04)%   0.29%   0.15%   0.06%   0.14%
Installment   0.15%   (0.08)%   (0.13)%   0.08%   0.00%
Credit card   2.15%   2.27%   4.40%   1.92%   2.62%
Total net charge-offs   (0.04)%   0.15%   0.45%   0.08%   0.64%
                          
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS                         
Nonaccrual loans (1)                         
Commercial and industrial  $21,126   $24,346   $28,358   $18,502   $19,263 
Lease financing   222    223    284    295    301 
Construction real estate   0    0    5    6    7 
Commercial real estate   10,050    7,295    14,889    15,981    21,082 
Residential real estate   11,163    10,892    11,655    11,627    13,052 
Home equity   5,821    5,242    5,427    4,745    5,581 
Installment   145    167    75    195    170 
Nonaccrual loans   48,527    48,165    60,693    51,351    59,456 
Accruing troubled debt restructurings (TDRs)   22,206    11,435    18,450    37,420    22,817 
Total nonperforming loans   70,733    59,600    79,143    88,771    82,273 
Other real estate owned (OREO)   1,467    2,033    1,613    1,421    1,665 
Total nonperforming assets   72,200    61,633    80,756    90,192    83,938 
Accruing loans past due 90 days or more   120    201    287    107    178 
Total underperforming assets  $72,320   $61,834   $81,043   $90,299   $84,116 
Total classified assets  $124,510   $89,250   $132,500   $147,753   $142,014 
                          
CREDIT QUALITY RATIOS                         
Allowance for credit losses to                         
Nonaccrual loans   296.51%   119.69%   93.18%   119.86%   95.40%
Nonperforming loans   203.42%   96.73%   71.46%   69.33%   68.94%
Total ending loans   1.55%   0.63%   0.62%   0.69%   0.64%
Nonperforming loans to total loans   0.76%   0.65%   0.87%   0.99%   0.93%
Nonperforming assets to                         
Ending loans, plus OREO   0.78%   0.67%   0.89%   1.00%   0.95%
Total assets   0.48%   0.42%   0.56%   0.62%   0.60%
Nonperforming assets, excluding accruing TDRs to                         
Ending loans, plus OREO   0.54%   0.55%   0.69%   0.59%   0.69%
Total assets   0.33%   0.35%   0.43%   0.37%   0.43%
Classified assets to total assets   0.83%   0.62%   0.92%   1.02%   1.01%

 

(1)  Nonaccrual loans include nonaccrual TDRs of $18.4 million, $18.5 million, $21.5 million, $11.0 million, and $13.1 million, as of March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019, and March 31, 2019, respectively.

 

7

 

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

 

   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
   2020   2019   2019   2019   2019 
PER COMMON SHARE                         
Market Price                         
High  $25.52   $26.04   $25.49   $25.80   $28.56 
Low  $12.67   $23.24   $22.37   $22.16   $23.02 
Close  $14.91   $25.44   $24.48   $24.22   $24.06 
                          
Average shares outstanding - basic   97,736,690    98,684,706    98,517,025    98,083,799    97,926,088 
Average shares outstanding - diluted   98,356,214    99,232,167    99,077,723    98,648,384    98,436,311 
Ending shares outstanding   97,968,958    98,490,998    100,094,819    98,647,690    98,613,872 
                          
Total shareholders' equity  $2,179,383   $2,247,705   $2,261,313   $2,188,189   $2,130,419 
                          
REGULATORY CAPITAL   Preliminary                     
Common equity tier 1 capital  $1,243,152   $1,245,746   $1,253,803   $1,281,406   $1,246,004 
Common equity tier 1 capital ratio   11.27%   11.30%   11.52%   12.00%   12.03%
Tier 1 capital  $1,285,705   $1,288,185   $1,296,399   $1,323,905   $1,287,757 
Tier 1 ratio   11.66%   11.69%   11.91%   12.40%   12.43%
Total capital  $1,493,100   $1,475,813   $1,482,708   $1,515,382   $1,474,723 
Total capital ratio   13.54%   13.39%   13.62%   14.20%   14.24%
Total capital in excess of minimum requirement  $335,229   $318,315   $339,935   $394,571   $387,048 
Total risk-weighted assets  $11,027,347   $11,023,795   $10,883,554   $10,674,393   $10,358,805 
Leverage ratio   9.49%   9.58%   9.75%   10.02%   9.84%
                          
OTHER CAPITAL RATIOS                         
Ending shareholders' equity to ending assets   14.47%   15.49%   15.62%   15.16%   15.14%
Ending tangible shareholders' equity to ending tangible assets   8.25%   9.07%   9.17%   9.34%   9.15%
Average shareholders' equity to average assets   15.21%   15.53%   15.43%   15.22%   15.01%
Average tangible shareholders' equity to average tangible assets   8.79%   9.07%   9.35%   9.26%   8.95%
                          
REPURCHASE PROGRAM (1)                         
Shares repurchased   880,000    1,609,778    1,143,494    0    0 
Average share repurchase price  $18.96   $24.13   $23.94    N/A    N/A 
Total cost of shares repurchased  $16,686   $38,846   $27,372    N/A    N/A 

 

(1) Represents share repurchases as part of publicly announced plans.

 

N/A = Not applicable

 

8

 

 

FIRST FINANCIAL BANCORP /OH/ Reports