PR Newswire | Oct 21, 2021 04:16PM EDT

10/21 15:15 CDT

First Financial Bancorp Announces Third Quarter 2021 Financial Results CINCINNATI, Oct. 21, 2021

CINCINNATI, Oct. 21, 2021 /PRNewswire/ --

* Earnings per diluted share of $0.63 and on both GAAP and adjusted(1) basis * Return on average assets of 1.49% on both GAAP and adjusted(1) basis * Net interest margin FTE(1) of 3.32% * Loan growth of $74.8 million, excluding decline in PPP loans * Provision recapture of $10.1 million * Repurchased 2,484,295 shares during the quarter

First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2021.

For the three months ended September 30, 2021, the Company reported net income of $60.0 million, or $0.63 per diluted common share. These results compare to net income of $50.9 million, or $0.52 per diluted common share, for the second quarter of 2021 and $41.5 million, or $0.42 per diluted common share, for the third quarter of 2020. For the nine months ended September 30, 2021, First Financial had earnings per diluted common share of $1.64 compared to $1.10 for the same period in 2020.

Return on average assets for the third quarter of 2021 was 1.49% while return on average tangible common equity was 19.03%(1). These compare to returns on average assets of 1.26% and 1.04%, and returns on average tangible common equity of 16.31%(1) and 13.61%(1), in the second quarter of 2021 and the third quarter of 2020, respectively.

Third quarter 2021 highlights include:

* Net interest margin of 3.32% on a fully tax-equivalent basis(1) in line with expectations * 1 basis point increase from linked quarter driven by PPP forgiveness, which offset lower yields on earning assets

* Noninterest income of $42.5 million, or $42.2 million as adjusted(1) * Strong mortgage banking income of $8.6 million driven by higher premiums during the period * Elevated wealth management fees of $5.9 million * Other noninterest income increased $1.1 million, or 34.3%; driven by income from limited partnership investments and insurance proceeds

* Noninterest expenses of $99.1 million, or $93.6 million as adjusted(1) * Adjustments(1) include: * $5.3 million of tax credit investment write-downs

* Increase in expenses driven by incentive compensation tied to the Company's strong financial performance and modest increases in marketing costs and professional services * Efficiency ratio of 63.5%; 60.1% as adjusted(1)

* Loan balances declined $150.6 million from the second quarter driven by PPP forgiveness of $225.4 million during the quarter * Core loan balances increased $74.8 million, or 3.3% on an annualized basis compared to the second quarter * Non-PPP C&I loan balances increased 16.0% on an annualized basis

^(1) Financial information in this release that is described as "adjusted" orthat is presented on a fully tax equivalent basis is non-GAAP. For details onthe calculation of these non-GAAP financial measures and a reconciliation tothe GAAP financial measure, see the sections titled "Use of Non-GAAP FinancialMeasures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" inthe accompanying slide presentation.

* Total Allowance for Credit Losses of $160.5 million; Total quarterly provision recapture of $10.1 million * Loans and leases - ACL of $148.9 million, 1.59% of total loans; 1.62% of loans excluding PPP * Unfunded Commitments - ACL of $11.6 million * Provision recapture driven by improvements in economic conditions, declining classified asset balances, and lower net charge-offs

* Strong capital ratios * Total capital of 14.97% * Tier 1 common equity of 11.54% * Tangible common equity of 8.21%(1); 8.31%(1) excluding PPP loans * Tangible book value per share of $13.09(1) * Repurchased 2,484,295 shares during third quarter; 4,633,355 shares repurchased in 2021

Archie Brown, President and Chief Executive Officer, commented, "We are pleased to announce third quarter results that are highlighted by robust earnings, loan growth, strong fee income, lower credit costs and improving credit trends."

Mr. Brown continued, "Third quarter results were strong across the board, with earnings per share of $0.63, return on assets of 1.49% and an adjusted(1) efficiency ratio of 60.1%. Third quarter earnings were the highest they've been since the MainSource merger in 2018, and were highlighted by significant provision recapture of $10.1 million. Provision recapture during the period was a result of improving credit quality trends, specifically, lower net charge-offs and declines in classified asset balances, and we expect further reductions in credit costs in the fourth quarter of 2021 and the first part of 2022 given our optimism for further economic recovery. In addition, earnings were positively impacted by elevated mortgage and wealth management revenues and we were encouraged by strong loan originations during the period."

Mr. Brown added, "Total loan balances declined $150.6 million driven by $225.4 million in PPP forgiveness during the quarter. Core loan balances increased $74.8 million for the period as a result of strong origination activity, which included 16.0% growth in the C&I portfolio on an annualized basis. Our origination levels more than offset loan payoffs which remained high, particularly in our specialty finance and ICRE units. Additionally, we are encouraged that loan pipeline activity has increased."

Mr. Brown commented regarding the share repurchase program, "During the quarter we repurchased approximately 2.5 million shares at an average price of $23.04 bringing our total shares repurchased in 2021 to 4.6 million. When combined with the common dividend, the share repurchases approximate a return to shareholders of 131.7% of quarterly earnings. There are 366,645 shares remaining in our current buyback authorization."

Mr. Brown concluded, "We were also very pleased to bring our associates back to our physical office locations during the quarter, albeit with greater flexibility than pre-Covid. We firmly believe we are stronger when we are together, and we have already witnessed how combining best practices learned from the pandemic with our culture of collaboration positively impacts our clients and financial performance."

Full detail of the Company's third quarter 2021 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast InformationFirst Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, October 22, 2021 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (833) 950-0062 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 674818. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (866) 813-9403 (U.S. toll free), (929) 458-6194 (U.S. local) and +44 204 525-0658 (all other locations), access code 979537. The recording will be available until November 5, 2021. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on WebsiteThis press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

Use of Non-GAAP Financial MeasuresThis earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Forward-Looking Statements

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

* economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; * future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses * the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; * Management's ability to effectively execute its business plans; * mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; * the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period; * the effect of changes in accounting policies and practices; * changes in consumer spending, borrowing and saving and changes in unemployment; * changes in customers' performance and creditworthiness; * the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; * current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; * the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; * our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; * financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; * the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; * the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; * a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; * the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and * our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2020, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

About First Financial Bancorp.First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of September 30, 2021, the Company had $16.0 billion in assets, $9.4 billion in loans, $12.7 billion in deposits and $2.2 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.2 billion in assets under management as of September 30, 2021. The Company operated 139 full service banking centers as of September 30, 2021, primarily in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

(Unaudited)



Three Months Ended, Nine months ended,

Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, September 30,

2021 2021 2021 2020 2020 2021 2020

RESULTS OF OPERATIONS

Net income $60,012 $50,888 $47,315 $48,312 $41,477 $158,215 $107,498

Net earnings per share - basic $0.64 $0.53 $0.49 $0.50 $0.43 $1.65 $1.10

Net earnings per share - diluted $0.63 $0.52 $0.48 $0.49 $0.42 $1.64 $1.10

Dividends declared per share $0.23 $0.23 $0.23 $0.23 $0.23 $0.69 $0.69



KEY FINANCIAL RATIOS

Return on average assets 1.49 %1.26 %1.20 %1.20 %1.04 %1.32 %0.93 %

Return on average shareholders' equity 10.53 %9.02 %8.44 %8.52 %7.40 %9.34 %6.50 %

Return on average tangible shareholders' equity ^(1) 19.03 %16.31 %15.24 %15.50 %13.61 %16.87 %12.08 %



Net interest margin 3.28 %3.27 %3.35 %3.45 %3.32 %3.30 %3.46 %

Net interest margin (fully tax equivalent) ^(1)(2) 3.32 %3.31 %3.40 %3.49 %3.36 %3.34 %3.52 %



Ending shareholders' equity as a percent of ending assets 14.01 %14.15 %13.97 %14.29 %14.11 %14.01 %14.11 %

Ending tangible shareholders' equity as a percent of:

Ending tangible assets ^(1) 8.21 %8.37 %8.22 %8.47 %8.25 %8.21 %8.25 %

Risk-weighted assets ^(1) 10.76 %11.12 %11.02 %11.29 %11.07 %10.76 %11.07 %



Average shareholders' equity as a percent of average assets14.14 %13.96 %14.17 %14.07 %14.08 %14.09 %14.38 %

Average tangible shareholders' equity as a percent of

average tangible assets ^(1) 8.35 %8.23 %8.38 %8.26 %8.18 %8.32 %8.29 %



Book value per share $23.85 $23.59 $23.16 $23.28 $22.94 $23.85 $22.94

Tangible book value per share ^(1) $13.09 $13.08 $12.78 $12.93 $12.56 $13.09 $12.56



Common equity tier 1 ratio^ (3) 11.54 %11.78 %11.81 %11.82 %11.63 %11.54 %11.63 %

Tier 1 ratio ^(3) 11.92 %12.16 %12.19 %12.20 %12.02 %11.92 %12.02 %

Total capital ratio ^(3) 14.97 %15.31 %15.41 %15.55 %15.37 %14.97 %15.37 %

Leverage ratio ^(3) 9.05 %9.14 %9.34 %9.55 %9.55 %9.05 %9.55 %



AVERAGE BALANCE SHEET ITEMS

Loans ^(4) $9,502,750 $9,831,965 $9,951,855 $10,127,881 $10,253,392 $9,760,545 $9,827,033

Investment securities 4,189,253 4,130,207 3,782,993 3,403,839 3,162,832 4,035,639 3,147,655

Interest-bearing deposits with other banks 32,400 45,593 46,912 143,884 40,277 41,582 57,138

Total earning assets $13,724,403 $14,007,765 $13,781,760 $13,675,604 $13,456,501 $13,837,766 $13,031,826

Total assets $15,995,808 $16,215,469 $16,042,654 $16,030,986 $15,842,010 $16,084,472 $15,360,642

Noninterest-bearing deposits $3,981,404 $4,003,626 $3,840,046 $3,720,417 $3,535,432 $3,942,210 $3,172,841

Interest-bearing deposits 8,685,949 8,707,553 8,531,822 8,204,306 8,027,082 8,642,339 8,004,450

Total deposits $12,667,353 $12,711,179 $12,371,868 $11,924,723 $11,562,514 $12,584,549 $11,177,291

Borrowings $562,964 $749,114 $886,379 $1,307,461 $1,519,748 $731,634 $1,509,482

Shareholders' equity $2,261,293 $2,263,687 $2,272,749 $2,256,062 $2,230,422 $2,265,868 $2,208,753



CREDIT QUALITY RATIOS

Allowance to ending loans 1.59 %1.68 %1.71 %1.77 %1.65 %1.59 %1.65 %

Allowance to nonaccrual loans 225.73 %184.77 %199.33 %217.55 %216.28 %225.73 %216.28 %

Allowance to nonperforming loans 192.35 %162.12 %175.44 %199.97 %196.69 %192.35 %196.69 %

Nonperforming loans to total loans 0.83 %1.03 %0.97 %0.89 %0.84 %0.83 %0.84 %

Nonperforming assets to ending loans, plus OREO 0.83 %1.04 %0.98 %0.90 %0.86 %0.83 %0.86 %

Nonperforming assets to total assets 0.49 %0.62 %0.60 %0.56 %0.55 %0.49 %0.55 %

Classified assets to total assets 1.04 %1.14 %1.22 %0.89 %0.84 %1.04 %0.84 %

Net charge-offs to average loans (annualized) 0.10 %0.23 %0.38 %0.26 %0.21 %0.24 %0.10 %

Non-GAAP measure. For details on the calculation of these non-GAAP^ financial measures and a reconciliation to the GAAP financial measure, see(1) the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

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(2) 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.

^ September 30, 2021 regulatory capital ratios are preliminary.(3)

^ Includes loans held for sale.(4)

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)



Three months ended, Nine months ended,

September 30, September 30,

2021 2020 % Change 2021 2020 % Change

Interest income

Loans and leases, including fees $96,428 $103,249 (6.6) %$292,853 $324,924 (9.9) %

Investment securities

Taxable 20,088 17,906 12.2 %58,219 55,387 5.1 %

Tax-exempt 4,282 4,884 (12.3) %14,196 14,403 (1.4) %

Total investment securities interest 24,370 22,790 6.9 %72,415 69,790 3.8 %

Other earning assets 23 31 (25.8) %76 220 (65.5) %

Total interest income 120,821 126,070 (4.2) %365,344 394,934 (7.5) %



Interest expense

Deposits 3,320 7,886 (57.9) %11,346 36,002 (68.5) %

Short-term borrowings 68 51 33.3 %188 6,412 (97.1) %

Long-term borrowings 4,023 5,953 (32.4) %12,498 14,482 (13.7) %

Total interest expense 7,411 13,890 (46.6) %24,032 56,896 (57.8) %

Net interest income 113,410 112,180 1.1 %341,312 338,038 1.0 %

Provision for credit losses-loans and leases (8,193) 15,299 (153.6) %(9,499) 57,038 (116.7) %

Provision for credit losses-unfunded commitments (1,951) (1,925) 1.4 %(896) 2,013 (144.5) %

Net interest income after provision for credit losses 123,554 98,806 25.0 %351,707 278,987 26.1 %



Noninterest income

Service charges on deposit accounts 8,548 7,356 16.2 %23,231 21,792 6.6 %

Trust and wealth management fees 5,896 4,940 19.4 %17,742 15,891 11.6 %

Bankcard income 3,838 3,124 22.9 %10,698 8,666 23.4 %

Client derivative fees 2,273 2,203 3.2 %5,624 8,292 (32.2) %

Foreign exchange income 9,191 10,530 (12.7) %31,985 27,072 18.1 %

Net gains from sales of loans 8,586 18,594 (53.8) %26,529 38,087 (30.3) %

Net gains (losses) on sale of investment securities (314) 2 N/M (745) (55) N/M

Unrealized gain (loss) on equity securities 108 18 N/M 381 70 N/M

Other 4,411 2,732 61.5 %10,401 7,793 33.5 %

Total noninterest income 42,537 49,499 (14.1) %125,846 127,608 (1.4) %



Noninterest expenses

Salaries and employee benefits 61,717 63,769 (3.2) %183,754 174,516 5.3 %

Net occupancy 5,571 5,625 (1.0) %16,810 17,107 (1.7) %

Furniture and equipment 3,318 3,638 (8.8) %10,658 11,372 (6.3) %

Data processing 7,951 6,837 16.3 %23,102 20,245 14.1 %

Marketing 2,435 1,856 31.2 %5,831 4,415 32.1 %

Communication 669 855 (21.8) %2,253 2,652 (15.0) %

Professional services 2,199 2,443 (10.0) %5,678 6,923 (18.0) %

State intangible tax 1,202 1,514 (20.6) %3,605 4,544 (20.7) %

FDIC assessments 1,466 1,350 8.6 %4,177 4,045 3.3 %

Intangible amortization 2,479 2,779 (10.8) %7,438 8,362 (11.0) %

Other 10,051 6,845 46.8 %27,901 21,685 28.7 %

Total noninterest expenses 99,058 97,511 1.6 %291,207 275,866 5.6 %

Income before income taxes 67,033 50,794 32.0 %186,346 130,729 42.5 %

Income tax expense 7,021 9,317 (24.6) %28,131 23,231 21.1 %

Net income $60,012 $41,477 44.7 %$158,215 $107,498 47.2 %



ADDITIONAL DATA

Net earnings per share - basic $0.64 $0.43 $1.65 $1.10

Net earnings per share - diluted $0.63 $0.42 $1.64 $1.10

Dividends declared per share $0.23 $0.23 $0.69 $0.69



Return on average assets 1.49 %1.04 % 1.32 %0.93 %

Return on average shareholders' equity 10.53 %7.40 % 9.34 %6.50 %



Interest income $120,821 $126,070 (4.2) %$365,344 $394,934 (7.5) %

Tax equivalent adjustment 1,434 1,628 (11.9) %4,705 4,916 (4.3) %

Interest income - tax equivalent 122,255 127,698 (4.3) %370,049 399,850 (7.5) %

Interest expense 7,411 13,890 (46.6) %24,032 56,896 (57.8) %

Net interest income - tax equivalent $114,844 $113,808 0.9 %$346,017 $342,954 0.9 %



Net interest margin 3.28 %3.32 % 3.30 %3.46 %

Net interest margin (fully tax equivalent) ^(1) 3.32 %3.36 % 3.34 %3.52 %



Full-time equivalent employees 2,026 2,065



(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)



2021

Third Second First Year to % Change

Quarter Quarter Quarter Date Linked Qtr.

Interest income

Loans and leases, including fees $96,428 $97,494 $98,931 $292,853 (1.1) %

Investment securities

Taxable 20,088 19,524 18,607 58,219 2.9 %

Tax-exempt 4,282 4,871 5,043 14,196 (12.1) %

Total investment securities interest 24,370 24,395 23,650 72,415 (0.1) %

Other earning assets 23 25 28 76 (8.0) %

Total interest income 120,821 121,914 122,609 365,344 (0.9) %



Interest expense

Deposits 3,320 3,693 4,333 11,346 (10.1) %

Short-term borrowings 68 53 67 188 28.3 %

Long-term borrowings 4,023 4,142 4,333 12,498 (2.9) %

Total interest expense 7,411 7,888 8,733 24,032 (6.0) %

Net interest income 113,410 114,026 113,876 341,312 (0.5) %

Provision for credit losses-loans and leases (8,193) (4,756) 3,450 (9,499) 72.3 %

Provision for credit losses-unfunded commitments (1,951) 517 538 (896) (477.4) %

Net interest income after provision for credit losses 123,554 118,265 109,888 351,707 4.5 %



Noninterest income

Service charges on deposit accounts 8,548 7,537 7,146 23,231 13.4 %

Trust and wealth management fees 5,896 6,216 5,630 17,742 (5.1) %

Bankcard income 3,838 3,732 3,128 10,698 2.8 %

Client derivative fees 2,273 1,795 1,556 5,624 26.6 %

Foreign exchange income 9,191 12,037 10,757 31,985 (23.6) %

Net gains from sales of loans 8,586 8,489 9,454 26,529 1.1 %

Net gains (losses) on sale of investment securities (314) (265) (166) (745) 18.5 %

Unrealized gain (loss) on equity securities 108 161 112 381 (32.9) %

Other 4,411 3,285 2,705 10,401 34.3 %

Total noninterest income 42,537 42,987 40,322 125,846 (1.0) %



Noninterest expenses

Salaries and employee benefits 61,717 60,784 61,253 183,754 1.5 %

Net occupancy 5,571 5,535 5,704 16,810 0.7 %

Furniture and equipment 3,318 3,371 3,969 10,658 (1.6) %

Data processing 7,951 7,864 7,287 23,102 1.1 %

Marketing 2,435 2,035 1,361 5,831 19.7 %

Communication 669 746 838 2,253 (10.3) %

Professional services 2,199 2,029 1,450 5,678 8.4 %

State intangible tax 1,202 1,201 1,202 3,605 0.1 %

FDIC assessments 1,466 1,362 1,349 4,177 7.6 %

Intangible amortization 2,479 2,480 2,479 7,438 0.0 %

Other 10,051 12,236 5,614 27,901 (17.9) %

Total noninterest expenses 99,058 99,643 92,506 291,207 (0.6) %

Income before income taxes 67,033 61,609 57,704 186,346 8.8 %

Income tax expense 7,021 10,721 10,389 28,131 (34.5) %

Net income $60,012 $50,888 $47,315 $158,215 17.9 %



ADDITIONAL DATA

Net earnings per share - basic $0.64 $0.53 $0.49 $1.65

Net earnings per share - diluted $0.63 $0.52 $0.48 $1.64

Dividends declared per share $0.23 $0.23 $0.23 $0.69



Return on average assets 1.49 %1.26 %1.20 %1.32 %

Return on average shareholders' equity 10.53 %9.02 %8.44 %9.34 %



Interest income $120,821 $121,914 $122,609 $365,344 (0.9) %

Tax equivalent adjustment 1,434 1,619 1,652 4,705 (11.4) %

Interest income - tax equivalent 122,255 123,533 124,261 370,049 (1.0) %

Interest expense 7,411 7,888 8,733 24,032 (6.0) %

Net interest income - tax equivalent $114,844 $115,645 $115,528 $346,017 (0.7) %



Net interest margin 3.28 %3.27 %3.35 %3.30 %

Net interest margin (fully tax equivalent)^ (1) 3.32 %3.31 %3.40 %3.34 %



Full-time equivalent employees 2,026 2,053 2,063



(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)



2020

Fourth Third Second First Full

Quarter Quarter Quarter Quarter Year

Interest income

Loans and leases, including fees $106,733 $103,249 $105,900 $115,775 $431,657

Investment securities

Taxable 18,402 17,906 18,476 19,005 73,789

Tax-exempt 4,839 4,884 4,937 4,582 19,242

Total investment securities interest 23,241 22,790 23,413 23,587 93,031

Other earning assets 55 31 47 142 275

Total interest income 130,029 126,070 129,360 139,504 524,963



Interest expense

Deposits 5,920 7,886 11,751 16,365 41,922

Short-term borrowings 30 51 1,274 5,087 6,442

Long-term borrowings 5,606 5,953 4,759 3,770 20,088

Total interest expense 11,556 13,890 17,784 25,222 68,452

Net interest income 118,473 112,180 111,576 114,282 456,511

Provision for credit losses-loans and leases 13,758 15,299 17,859 23,880 70,796

Provision for credit losses-unfunded commitments (2,250) (1,925) 2,370 1,568 (237)

Net interest income after provision for credit losses 106,965 98,806 91,347 88,834 385,952



Noninterest income

Service charges on deposit accounts 7,654 7,356 6,001 8,435 29,446

Trust and wealth management fees 5,395 4,940 5,254 5,697 21,286

Bankcard income 3,060 3,124 2,844 2,698 11,726

Client derivative fees 2,021 2,203 2,984 3,105 10,313

Foreign exchange income 12,305 10,530 6,576 9,966 39,377

Net gains from sales of loans 13,089 18,594 16,662 2,831 51,176

Net gains (losses) on sale of investment securities 4,618 2 2 (59) 4,563

Unrealized gain (loss) on equity securities 8,975 18 150 (98) 9,045

Other 4,398 2,732 2,252 2,809 12,191

Total noninterest income 61,515 49,499 42,725 35,384 189,123



Noninterest expenses

Salaries and employee benefits 62,263 63,769 55,925 54,822 236,779

Net occupancy 6,159 5,625 5,378 6,104 23,266

Furniture and equipment 3,596 3,638 3,681 4,053 14,968

Data processing 7,269 6,837 7,019 6,389 27,514

Marketing 1,999 1,856 1,339 1,220 6,414

Communication 840 855 907 890 3,492

Professional services 3,038 2,443 2,205 2,275 9,961

Debt extinguishment 7,257 0 0 0 7,257

State intangible tax 1,514 1,514 1,514 1,516 6,058

FDIC assessments 1,065 1,350 1,290 1,405 5,110

Intangible amortization 2,764 2,779 2,791 2,792 11,126

Other 17,034 6,845 6,640 8,200 38,719

Total noninterest expenses 114,798 97,511 88,689 89,666 390,664

Income before income taxes 53,682 50,794 45,383 34,552 184,411

Income tax expense (benefit) 5,370 9,317 7,990 5,924 28,601

Net income $48,312 $41,477 $37,393 $28,628 $155,810



ADDITIONAL DATA

Net earnings per share - basic $0.50 $0.43 $0.38 $0.29 $1.60

Net earnings per share - diluted $0.49 $0.42 $0.38 $0.29 $1.59

Dividends declared per share $0.23 $0.23 $0.23 $0.23 $0.92



Return on average assets 1.20 %1.04 %0.96 %0.79 %1.00 %

Return on average shareholders' equity 8.52 %7.40 %6.88 %5.21 %7.02 %



Interest income $130,029 $126,070 $129,360 $139,504 $524,963

Tax equivalent adjustment 1,613 1,628 1,664 1,624 6,529

Interest income - tax equivalent 131,642 127,698 131,024 141,128 531,492

Interest expense 11,556 13,890 17,784 25,222 68,452

Net interest income - tax equivalent $120,086 $113,808 $113,240 $115,906 $463,040



Net interest margin 3.45 %3.32 %3.38 %3.71 %3.46 %

Net interest margin (fully tax equivalent)^ (1) 3.49 %3.36 %3.44 %3.77 %3.51 %



Full-time equivalent employees 2,075 2,065 2,076 2,067



^(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)



Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, % Change % Change

2021 2021 2021 2020 2020 Linked Qtr.Comp Qtr.

ASSETS

Cash and due from banks $209,748 $206,918 $210,191 $231,054 $207,128 1.4 % 1.3 %

Interest-bearing deposits with other banks 29,799 38,610 19,180 20,305 38,806 (22.8) % (23.2)%

Investment securities available-for-sale 4,114,094 3,955,839 3,753,763 3,424,580 3,004,963 4.0 % 36.9 %

Investment securities held-to-maturity 103,886 112,456 121,945 131,687 118,072 (7.6) % (12.0)%

Other investments 97,831 129,432 131,814 133,198 118,292 (24.4) % (17.3)%

Loans held for sale 33,835 31,546 34,590 41,103 69,008 7.3 % (51.0)%

Loans and leases

Commercial and industrial 2,602,848 2,701,203 3,044,825 3,007,509 3,292,313 (3.6) % (20.9)%

Lease financing 67,855 68,229 66,574 72,987 74,742 (0.5) % (9.2) %

Construction real estate 477,004 630,329 642,709 636,096 575,648 (24.3) % (17.1)%

Commercial real estate 4,438,374 4,332,561 4,396,582 4,307,858 4,347,125 2.4 % 2.1 %

Residential real estate 922,492 932,112 946,522 1,003,086 1,027,702 (1.0) % (10.2)%

Home equity 709,050 711,756 709,667 743,099 754,743 (0.4) % (6.1) %

Installment 96,077 89,143 82,421 81,850 84,629 7.8 % 13.5 %

Credit card 47,231 46,177 44,669 48,485 43,907 2.3 % 7.6 %

Total loans 9,360,931 9,511,510 9,933,969 9,900,970 10,200,809 (1.6) % (8.2) %

Less:

Allowance for credit losses (148,903) (159,590) (169,923) (175,679) (168,544) (6.7) % (11.7)%

Net loans 9,212,028 9,351,920 9,764,046 9,725,291 10,032,265 (1.5) % (8.2) %

Premises and equipment 192,580 192,238 204,537 207,211 209,474 0.2 % (8.1) %

Goodwill 937,771 937,771 937,771 937,771 937,771 0.0 % 0.0 %

Other intangibles 56,811 59,391 61,984 64,552 67,419 (4.3) % (15.7)%

Accrued interest and other assets 968,210 1,021,798 935,250 1,056,382 1,122,449 (5.2) % (13.7)%

Total Assets $15,956,593$16,037,919$16,175,071$15,973,134$15,925,647(0.5) % 0.2 %



LIABILITIES

Deposits

Interest-bearing demand $2,916,860 $2,963,151 $2,914,761 $2,914,787 $2,632,467 (1.6) % 10.8 %

Savings 4,223,905 4,093,229 4,006,181 3,680,774 3,446,678 3.2 % 22.6 %

Time 1,517,419 1,548,109 1,731,757 1,872,733 1,935,392 (2.0) % (21.6)%

Total interest-bearing deposits 8,658,184 8,604,489 8,652,699 8,468,294 8,014,537 0.6 % 8.0 %

Noninterest-bearing 4,019,197 3,901,691 3,995,370 3,763,709 3,552,893 3.0 % 13.1 %

Total deposits 12,677,381 12,506,180 12,648,069 12,232,003 11,567,430 1.4 % 9.6 %

Federal funds purchased and securities sold

under agreements to repurchase 81,850 255,791 181,387 166,594 247,658 (68.0) % (67.0)%

FHLB short-term borrowings 107,000 217,000 0 0 0 (50.7) % 100.0 %

Total short-term borrowings 188,850 472,791 181,387 166,594 247,658 (60.1) % (23.7)%

Long-term debt 313,230 313,039 583,722 776,202 1,341,164 0.1 % (76.6)%

Total borrowed funds 502,080 785,830 765,109 942,796 1,588,822 (36.1) % (68.4)%

Accrued interest and other liabilities 540,962 476,402 502,951 516,265 521,580 13.6 % 3.7 %

Total Liabilities 13,720,423 13,768,412 13,916,129 13,691,064 13,677,832 (0.3) % 0.3 %



SHAREHOLDERS' EQUITY

Common stock 1,637,065 1,635,470 1,633,137 1,638,947 1,637,489 0.1 % 0.0 %

Retained earnings 812,082 773,857 745,220 720,429 694,484 4.9 % 16.9 %

Accumulated other comprehensive income (loss)14,230 30,735 18,101 48,664 42,266 (53.7) % (66.3)%

Treasury stock, at cost (227,207) (170,555) (137,516) (125,970) (126,424) 33.2 % 79.7 %

Total Shareholders' Equity 2,236,170 2,269,507 2,258,942 2,282,070 2,247,815 (1.5) % (0.5) %

Total Liabilities and Shareholders' Equity $15,956,593$16,037,919$16,175,071$15,973,134$15,925,647(0.5) % 0.2 %





FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)



Quarterly Averages Year-to-Date Averages

Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30,

2021 2021 2021 2020 2020 2021 2020

ASSETS

Cash and due from banks $245,212 $237,964 $232,275 $228,427 $233,216 $238,531 $251,147

Interest-bearing deposits with other banks 32,400 45,593 46,912 143,884 40,277 41,582 57,138

Investment securities 4,189,253 4,130,207 3,782,993 3,403,839 3,162,832 4,035,639 3,147,655

Loans held for sale 28,365 28,348 29,689 42,402 45,186 28,796 31,700

Loans and leases

Commercial and industrial 2,634,306 2,953,185 3,029,716 3,182,749 3,299,259 2,870,954 2,937,601

Lease financing 67,159 66,124 70,508 74,107 78,500 67,918 81,821

Construction real estate 567,091 630,351 647,655 608,401 536,870 614,737 511,343

Commercial real estate 4,413,003 4,372,679 4,339,349 4,313,408 4,364,708 4,375,280 4,318,735

Residential real estate 937,969 940,600 980,718 1,022,701 1,041,250 952,939 1,049,869

Home equity 710,794 707,409 726,134 752,425 759,994 714,723 768,469

Installment 93,937 84,768 81,377 83,509 82,016 86,740 80,760

Credit card 50,126 48,501 46,709 48,179 45,609 48,458 46,735

Total loans 9,474,385 9,803,617 9,922,166 10,085,479 10,208,206 9,731,749 9,795,333

Less:

Allowance for credit losses (157,727) (169,979) (177,863) (172,201) (165,270) (168,449) (147,349)

Net loans 9,316,658 9,633,638 9,744,303 9,913,278 10,042,936 9,563,300 9,647,984

Premises and equipment 193,775 200,558 206,628 208,800 211,454 200,273 213,626

Goodwill 937,771 937,771 937,771 937,771 937,771 937,771 937,771

Other intangibles 58,314 60,929 63,529 66,195 69,169 60,905 72,079

Accrued interest and other assets 994,060 940,461 998,554 1,086,390 1,099,169 977,675 1,001,542

Total Assets $15,995,808$16,215,469$16,042,654$16,030,986$15,842,010$16,084,472$15,360,642



LIABILITIES

Deposits

Interest-bearing demand $2,960,388 $2,973,930 $2,948,682 $2,812,748 $2,668,635 $2,961,043 $2,563,633

Savings 4,150,610 4,096,077 3,815,314 3,547,179 3,342,514 4,021,895 3,164,753

Time 1,574,951 1,637,546 1,767,826 1,844,379 2,015,933 1,659,401 2,276,064

Total interest-bearing deposits 8,685,949 8,707,553 8,531,822 8,204,306 8,027,082 8,642,339 8,004,450

Noninterest-bearing 3,981,404 4,003,626 3,840,046 3,720,417 3,535,432 3,942,210 3,172,841

Total deposits 12,667,353 12,711,179 12,371,868 11,924,723 11,562,514 12,584,549 11,177,291

Federal funds purchased and securities sold

under agreements to repurchase 186,401 194,478 184,483 136,795 150,088 188,461 153,146

FHLB short-term borrowings 63,463 40,846 67,222 7,937 30,868 57,163 587,566

Total short-term borrowings 249,864 235,324 251,705 144,732 180,956 245,624 740,712

Long-term debt 313,100 513,790 634,674 1,162,729 1,338,792 486,010 768,770

Total borrowed funds 562,964 749,114 886,379 1,307,461 1,519,748 731,634 1,509,482

Accrued interest and other liabilities 504,198 491,489 511,658 542,740 529,326 502,421 465,116

Total Liabilities 13,734,515 13,951,782 13,769,905 13,774,924 13,611,588 13,818,604 13,151,889



SHAREHOLDERS' EQUITY

Common stock 1,635,833 1,633,950 1,636,884 1,638,032 1,636,107 1,635,552 1,636,453

Retained earnings 783,760 754,456 726,351 703,257 679,980 755,066 666,184

Accumulated other comprehensive loss 36,917 25,832 42,253 40,960 40,697 34,981 30,632

Treasury stock, at cost (195,217) (150,551) (132,739) (126,187) (126,362) (159,731) (124,516)

Total Shareholders' Equity 2,261,293 2,263,687 2,272,749 2,256,062 2,230,422 2,265,868 2,208,753

Total Liabilities and Shareholders' Equity$15,995,808$16,215,469$16,042,654$16,030,986$15,842,010$16,084,472$15,360,642





FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)



Quarterly Averages Year-to-Date Averages

September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

Balance Yield Balance Yield Balance Yield Balance Yield Balance Yield

Earning assets

Investments:

Investment securities $4,189,253 2.31%$4,130,207 2.37%$3,162,832 2.86 % $4,035,639 2.40 % $3,147,655 2.96 %

Interest-bearing deposits with other banks32,400 0.28%45,593 0.22%40,277 0.31 % 41,582 0.24 % 57,138 0.51 %

Gross loans ^(1) 9,502,750 4.03%9,831,965 3.98%10,253,392 4.00 % 9,760,545 4.01 % 9,827,033 4.42 %

Total earning assets 13,724,403 3.49%14,007,765 3.49%13,456,501 3.72 % 13,837,766 3.53 % 13,031,826 4.05 %



Nonearning assets

Allowance for credit losses (157,727) (169,979) (165,270) (168,449) (147,349)

Cash and due from banks 245,212 237,964 233,216 238,531 251,147

Accrued interest and other assets 2,183,920 2,139,719 2,317,563 2,176,624 2,225,018

Total assets $15,995,808 $16,215,469 $15,842,010 $16,084,472 $15,360,642



Interest-bearing liabilities

Deposits:

Interest-bearing demand $2,960,388 0.06%$2,973,930 0.07%$2,668,635 0.08 % $2,961,043 0.07 % $2,563,633 0.21 %

Savings 4,150,610 0.09%4,096,077 0.11%3,342,514 0.14 % 4,021,895 0.11 % 3,164,753 0.25 %

Time 1,574,951 0.49%1,637,546 0.51%2,015,933 1.20 % 1,659,401 0.54 % 2,276,064 1.54 %

Total interest-bearing deposits 8,685,949 0.15%8,707,553 0.17%8,027,082 0.39 % 8,642,339 0.18 % 8,004,450 0.60 %

Borrowed funds

Short-term borrowings 249,864 0.11%235,324 0.09%180,956 0.11 % 245,624 0.10 % 740,712 1.16 %

Long-term debt 313,100 5.10%513,790 3.23%1,338,792 1.76 % 486,010 3.44 % 768,770 2.52 %

Total borrowed funds 562,964 2.88%749,114 2.25%1,519,748 1.57 % 731,634 2.32 % 1,509,482 1.85 %

Total interest-bearing liabilities 9,248,913 0.32%9,456,667 0.33%9,546,830 0.58 % 9,373,973 0.34 % 9,513,932 0.80 %



Noninterest-bearing liabilities

Noninterest-bearing demand deposits 3,981,404 4,003,626 3,535,432 3,942,210 3,172,841

Other liabilities 504,198 491,489 529,326 502,421 465,116

Shareholders' equity 2,261,293 2,263,687 2,230,422 2,265,868 2,208,753

Total liabilities & shareholders' equity $15,995,808 $16,215,469 $15,842,010 $16,084,472 $15,360,642



Net interest income $113,410 $114,026 $112,180 $341,312 $338,038

Net interest spread 3.17% 3.16% 3.14 % 3.19 % 3.25 %

Net interest margin 3.28% 3.27% 3.32 % 3.30 % 3.46 %



Tax equivalent adjustment 0.04% 0.04% 0.04 % 0.04 % 0.06 %

Net interest margin (fully tax equivalent) 3.32% 3.31% 3.36 % 3.34 % 3.52 %





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

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS ^(1)

(Dollars in thousands)

(Unaudited)





Linked Qtr. Income Variance Comparable Qtr. Income Variance Year-to-Date Income Variance

Rate Volume Total Rate Volume Total Rate Volume Total

Earning assets

Investment securities $(630) $ 605 $(25) $(4,391) $5,971 $1,580 $(13,309)$15,934$2,625

Interest-bearing deposits with other banks7 (9) (2) (2) (6) (8) (116) (28) (144)

Gross loans ^(2) 1,190 (2,256)(1,066)796 (7,617) (6,821) (30,076) (1,995) (32,071)

Total earning assets 567 (1,660)(1,093)(3,597) (1,652) (5,249) (43,501) 13,911 (29,590)



Interest-bearing liabilities

Total interest-bearing deposits $(401) $ 28 $(373)$(4,818) $252 $(4,566)$(25,493)$837 $(24,656)

Borrowed funds

Short-term borrowings 10 5 15 (2) 19 17 (5,845) (379) (6,224)

Long-term debt 2,388 (2,507)(119) 11,249 (13,179)(1,930) 5,287 (7,271) (1,984)

Total borrowed funds 2,398 (2,502)(104) 11,247 (13,160)(1,913) (558) (7,650) (8,208)

Total interest-bearing liabilities 1,997 (2,474)(477) 6,429 (12,908)(6,479) (26,051) (6,813) (32,864)

Net interest income ^(1) $(1,430)$ 814 $(616)$(10,026)$11,256$1,230 $(17,450)$20,724$3,274





^(1) Not tax equivalent.

^(2) Loans held for sale and nonaccrual loans are included in gross loans.

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)

Nine months ended

Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30,

2021 2021 2021 2020 2020 2021 2020

ALLOWANCE FOR CREDIT LOSS ACTIVITY

Balance at beginning of period $ 159,590 $ 169,923 $ 175,679 $ 168,544 $ 158,661 $ 175,679 $ 57,650

Day one adoption impact of ASC 326 0 0 0 0 0 0 61,505

Provision for credit losses (8,193) (4,756) 3,450 13,758 15,299 (9,499) 57,038

Gross charge-offs

Commercial and industrial 2,617 3,729 7,910 1,505 1,467 14,256 3,840

Lease financing 0 0 0 0 852 0 852

Construction real estate 0 0 2 0 0 2 0

Commercial real estate 1,030 2,041 1,250 6,270 3,789 4,321 5,830

Residential real estate 74 46 1 203 22 121 285

Home equity 200 240 611 386 460 1,051 1,155

Installment 37 77 36 21 59 150 127

Credit card 230 179 222 169 171 631 716

Total gross charge-offs 4,188 6,312 10,032 8,554 6,820 20,532 12,805

Recoveries

Commercial and industrial 869 205 337 367 265 1,411 2,540

Lease financing 0 0 0 (6) 6 0 6

Construction real estate 0 3 0 3 0 3 14

Commercial real estate 223 75 195 844 760 493 1,418

Residential real estate 56 54 44 145 91 154 236

Home equity 426 317 177 428 209 920 704

Installment 53 37 34 65 35 124 93

Credit card 67 44 39 85 38 150 145

Total recoveries 1,694 735 826 1,931 1,404 3,255 5,156

Total net charge-offs 2,494 5,577 9,206 6,623 5,416 17,277 7,649

Ending allowance for credit losses $ 148,903 $ 159,590 $ 169,923 $ 175,679 $ 168,544 $ 148,903 $ 168,544



NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)

Commercial and industrial 0.26 % 0.48 % 1.01 % 0.14 % 0.14 % 0.60 % 0.06 %

Lease financing 0.00 % 0.00 % 0.00 % 0.03 % 4.29 % 0.00 % 1.38 %

Construction real estate 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %

Commercial real estate 0.07 % 0.18 % 0.10 % 0.50 % 0.28 % 0.12 % 0.14 %

Residential real estate 0.01 % 0.00 % (0.02) % 0.02 % (0.03) % 0.00 % 0.01 %

Home equity (0.13) % (0.04) % 0.24 % (0.02) % 0.13 % 0.02 % 0.08 %

Installment (0.07) % 0.19 % 0.01 % (0.21) % 0.12 % 0.04 % 0.06 %

Credit card 1.29 % 1.12 % 1.59 % 0.69 % 1.16 % 1.33 % 1.63 %

Total net charge-offs 0.10 % 0.23 % 0.38 % 0.26 % 0.21 % 0.24 % 0.10 %



COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

Nonaccrual loans ^(1)

Commercial and industrial $ 15,160 $ 27,426 $ 24,941 $ 29,230 $ 34,686 $ 15,160 $ 34,686

Lease financing 0 16 0 0 1,092 0 1,092

Construction real estate 0 0 0 0 0 0 0

Commercial real estate 38,564 45,957 44,514 34,682 24,521 38,564 24,521

Residential real estate 9,416 9,480 11,359 11,601 12,104 9,416 12,104

Home equity 2,735 3,376 4,286 5,076 5,374 2,735 5,374

Installment 91 115 146 163 153 91 153

Nonaccrual loans 65,966 86,370 85,246 80,752 77,930 65,966 77,930

Accruing troubled debt restructurings (TDRs) 11,448 12,070 11,608 7,099 7,759 11,448 7,759

Total nonperforming loans 77,414 98,440 96,854 87,851 85,689 77,414 85,689

Other real estate owned (OREO) 340 340 854 1,287 1,643 340 1,643

Total nonperforming assets 77,754 98,780 97,708 89,138 87,332 77,754 87,332

Accruing loans past due 90 days or more 104 155 92 169 79 104 79

Total underperforming assets $ 77,858 $ 98,935 $ 97,800 $ 89,307 $ 87,411 $ 77,858 $ 87,411

Total classified assets $ 165,462 $ 182,516 $ 196,782 $ 142,021 $ 134,002 $ 165,462 $ 134,002



CREDIT QUALITY RATIOS

Allowance for credit losses to

Nonaccrual loans 225.73 % 184.77 % 199.33 % 217.55 % 216.28 % 225.73 % 216.28 %

Nonperforming loans 192.35 % 162.12 % 175.44 % 199.97 % 196.69 % 192.35 % 196.69 %

Total ending loans 1.59 % 1.68 % 1.71 % 1.77 % 1.65 % 1.59 % 1.65 %

Nonperforming loans to total loans 0.83 % 1.03 % 0.97 % 0.89 % 0.84 % 0.83 % 0.84 %

Nonperforming assets to

Ending loans, plus OREO 0.83 % 1.04 % 0.98 % 0.90 % 0.86 % 0.83 % 0.86 %

Total assets 0.49 % 0.62 % 0.60 % 0.56 % 0.55 % 0.49 % 0.55 %

Nonperforming assets, excluding accruing TDRs to

Ending loans, plus OREO 0.71 % 0.91 % 0.87 % 0.83 % 0.78 % 0.71 % 0.78 %

Total assets 0.42 % 0.54 % 0.53 % 0.51 % 0.50 % 0.42 % 0.50 %

Classified assets to total assets 1.04 % 1.14 % 1.22 % 0.89 % 0.84 % 1.04 % 0.84 %



^(1) Nonaccrual loans include nonaccrual TDRs of $20.3 million, $21.5 million, $20.9 million, $14.7 million, and $29.3 million, as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

Nine months ended,

Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30,

2021 2021 2021 2020 2020 2021 2020

PER COMMON SHARE

Market Price

High $24.06 $26.02 $26.40 $17.77 $15.15 $26.40 $25.52

Low $21.48 $23.35 $17.62 $12.07 $11.40 $17.62 $11.40

Close $23.41 $23.63 $24.00 $17.53 $12.01 $23.41 $12.01



Average shares outstanding - basic 94,289,097 96,123,645 96,873,940 97,253,787 97,247,080 95,752,759 97,400,942

Average shares outstanding - diluted 95,143,930 97,009,712 97,727,527 98,020,534 98,008,733 96,617,600 98,117,463

Ending shares outstanding 93,742,797 96,199,509 97,517,693 98,021,929 97,999,763 93,742,797 97,999,763



Total shareholders' equity $2,236,170 $2,269,507 $2,258,942 $2,282,070 $2,247,815 $2,236,170 $2,247,815



REGULATORY CAPITAL Preliminary Preliminary

Common equity tier 1 capital $1,316,059 $1,333,209 $1,334,882 $1,325,922 $1,293,716 $1,316,059 $1,293,716

Common equity tier 1 capital ratio 11.54 %11.78 %11.81 %11.82 %11.63 %11.54 %11.63 %

Tier 1 capital $1,359,297 $1,376,333 $1,377,892 $1,368,818 $1,336,497 $1,359,297 $1,336,497

Tier 1 ratio 11.92 %12.16 %12.19 %12.20 %12.02 %11.92 %12.02 %

Total capital $1,706,513 $1,732,930 $1,741,755 $1,744,802 $1,708,817 $1,706,513 $1,708,817

Total capital ratio 14.97 %15.31 %15.41 %15.55 %15.37 %14.97 %15.37 %

Total capital in excess of minimum requirement $509,536 $544,478 $554,834 $566,795 $541,263 $509,536 $541,263

Total risk-weighted assets $11,399,782 $11,318,590 $11,304,012 $11,219,114 $11,119,560 $11,399,782 $11,119,560

Leverage ratio 9.05 %9.14 %9.34 %9.55 %9.55 %9.05 %9.55 %



OTHER CAPITAL RATIOS

Ending shareholders' equity to ending assets 14.01 %14.15 %13.97 %14.29 %14.11 %14.01 %14.11 %

Ending tangible shareholders' equity to ending tangible assets ^(1) 8.21 %8.37 %8.22 %8.47 %8.25 %8.21 %8.25 %

Average shareholders' equity to average assets 14.14 %13.96 %14.17 %14.07 %14.08 %14.09 %14.38 %

Average tangible shareholders' equity to average tangible assets ^(1) 8.35 %8.23 %8.38 %8.26 %8.18 %8.32 %8.29 %



REPURCHASE PROGRAM ^(2)

Shares repurchased 2,484,295 1,308,945 840,115 0 0 4,633,355 880,000

Average share repurchase price $23.04 $25.11 $21.40 N/A N/A $23.33 $18.96

Total cost of shares repurchased $57,231 $32,864 $17,982 N/A N/A $108,077 $16,686



^(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

^(2) Represents share repurchases as part of publicly announced plans.



N/A = Not applicable

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SOURCE First Financial Bancorp.