Ohio | 31-1042001 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||
(Dollars in thousands) | 2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Net interest income | $ | 55,804 | $ | 55,772 | $ | 58,078 | $ | 58,666 | $ | 61,976 | $ | 228,320 | $ | 253,341 | ||||||||
Tax equivalent adjustment | 635 | 516 | 514 | 477 | 366 | 2,142 | 1,055 | |||||||||||||||
Net interest income - tax equivalent | $ | 56,439 | $ | 56,288 | $ | 58,592 | $ | 59,143 | $ | 62,342 | $ | 230,462 | $ | 254,396 | ||||||||
Average earning assets | $ | 5,677,734 | $ | 5,659,432 | $ | 5,791,715 | $ | 5,887,810 | $ | 5,779,969 | $ | 5,753,337 | $ | 5,799,917 | ||||||||
Net interest margin* | 3.90 | % | 3.91 | % | 4.02 | % | 4.04 | % | 4.27 | % | 3.97 | % | 4.37 | % | ||||||||
Net interest margin (fully tax equivalent)* | 3.94 | % | 3.95 | % | 4.06 | % | 4.07 | % | 4.29 | % | 4.01 | % | 4.39 | % | ||||||||
* Margins are calculated using net interest income annualized divided by average earning assets. |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||
(Dollars in thousands, except per share data) | 2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Net income (a) | $ | 3,785 | $ | 14,911 | $ | 15,829 | $ | 13,824 | $ | 16,265 | $ | 48,349 | $ | 67,303 | ||||||||
Average total shareholders' equity | $ | 700,063 | $ | 693,158 | $ | 703,804 | $ | 708,862 | $ | 714,373 | $ | 701,425 | $ | 713,717 | ||||||||
Less: | ||||||||||||||||||||||
Goodwill | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | ||||||||
Intangible assets | (5,924 | ) | (6,249 | ) | (6,620 | ) | (7,078 | ) | (7,648 | ) | (5,924 | ) | (7,648 | ) | ||||||||
Average tangible equity (b) | 599,089 | 591,859 | 602,134 | 606,734 | 611,675 | 600,451 | 611,019 | |||||||||||||||
Total shareholders' equity | 682,161 | 692,039 | 695,452 | 701,614 | 710,425 | 682,161 | 710,425 | |||||||||||||||
Less: | ||||||||||||||||||||||
Goodwill | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | ||||||||
Intangible assets | (5,924 | ) | (6,249 | ) | (6,620 | ) | (7,078 | ) | (7,648 | ) | (5,924 | ) | (7,648 | ) | ||||||||
Ending tangible equity (c) | 581,187 | 590,740 | 593,782 | 599,486 | 607,727 | 581,187 | 607,727 | |||||||||||||||
Total assets | 6,417,213 | 6,253,441 | 6,274,575 | 6,349,017 | 6,497,048 | 6,417,213 | 6,497,048 | |||||||||||||||
Less: | ||||||||||||||||||||||
Goodwill | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | ||||||||
Intangible assets | (5,924 | ) | (6,249 | ) | (6,620 | ) | (7,078 | ) | (7,648 | ) | (5,924 | ) | (7,648 | ) | ||||||||
Ending tangible assets (d) | 6,316,239 | 6,152,142 | 6,172,905 | 6,246,889 | 6,394,350 | 6,316,239 | 6,394,350 | |||||||||||||||
Risk-weighted assets (e) | 4,276,153 | 4,140,561 | 4,093,644 | 3,982,479 | 3,904,096 | 4,276,153 | 3,904,096 | |||||||||||||||
Total average assets | 6,232,971 | 6,193,722 | 6,310,602 | 6,391,049 | 6,294,084 | 6,281,411 | 6,318,181 | |||||||||||||||
Less: | ||||||||||||||||||||||
Goodwill | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | (95,050 | ) | ||||||||
Intangible assets | (5,924 | ) | (6,249 | ) | (6,620 | ) | (7,078 | ) | (7,648 | ) | (5,924 | ) | (7,648 | ) | ||||||||
Average tangible assets (f) | 6,131,997 | 6,092,423 | 6,208,932 | 6,288,921 | 6,191,386 | 6,180,437 | 6,215,483 | |||||||||||||||
Ending common shares outstanding (g) | 57,533,046 | 57,702,444 | 57,698,344 | 58,028,923 | 58,046,235 | 57,533,046 | 58,046,235 | |||||||||||||||
Ratios | ||||||||||||||||||||||
Return on average tangible shareholders' equity (a)/(b) | 2.51 | % | 10.00 | % | 10.54 | % | 9.24 | % | 10.58 | % | 8.05 | % | 11.01 | % | ||||||||
Ending tangible shareholders' equity as a percent of: | ||||||||||||||||||||||
Ending tangible assets (c)/(d) | 9.20 | % | 9.60 | % | 9.62 | % | 9.60 | % | 9.50 | % | 9.20 | % | 9.50 | % | ||||||||
Risk-weighted assets (b)/(e) | 13.59 | % | 14.27 | % | 14.50 | % | 15.05 | % | 15.57 | % | 13.59 | % | 15.57 | % | ||||||||
Average tangible shareholders' equity of average tangible assets (b)/(f) | 9.77 | % | 9.71 | % | 9.70 | % | 9.65 | % | 9.88 | % | 9.72 | % | 9.83 | % | ||||||||
Tangible book value per share (c)/(g) | $ | 10.10 | $ | 10.24 | $ | 10.29 | $ | 10.33 | $ | 10.47 | $ | 10.10 | $ | 10.47 |
(b) | Independent director Donald M. Cisle Sr. has decided to retire from the board effective May 27, 2014, the date of the next annual shareholder meeting. Mr. Cisle has served as an independent director on the Company’s board since 1996 and presently serves on the Trust and Audit Committees of the board. |
By: /s/ Anthony M. Stollings | ||
Anthony M. Stollings | ||
Executive Vice President, Chief Financial Officer | ||
and Chief Administrative Officer | ||
Date: | January 30, 2014 |
▪ | Quarterly adjusted pre-tax, pre-provision income increased 4.0% to $27.4 million, or 1.75% of average assets |
▪ | Continued solid quarterly performance |
• | Quarterly results included several items which reduced earnings per diluted share by approximately $0.24 on a net basis |
• | Return on average assets of 0.24%; 1.14% as adjusted for the items noted below |
• | Return on average tangible common equity of 2.51%; 11.88% as adjusted for the items noted below |
▪ | Capital ratios remain strong |
• | Tangible common equity to tangible assets of 9.20% |
• | Tier 1 capital ratio of 14.61% |
• | Total risk-based capital ratio of 15.88% |
▪ | Total uncovered loan growth for the quarter of 8.6% on an annualized basis |
▪ | Quarterly net interest margin of 3.90% |
• | Excluding the impact from loans that returned to accrual status, net interest margin was 3.86% for the quarter |
• | Adjusted yield on the uncovered loan portfolio increased 2 bps during the quarter |
• | Yield on investment securities increased 18 bps to 2.38% |
▪ | Continued improvement in asset quality metrics |
• | Total nonperforming loans declined $21.5 million, or 29.0%, and represent 1.50% of total loans compared to 2.16% for the linked quarter |
• | Total nonperforming assets declined $13.5 million, or 15.7%, and represent 1.13% of total assets compared to 1.38% for the linked quarter |
Table I | |||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||
(Dollars in thousands) | 2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||||||||
Total noninterest income | $ | 13,043 | $ | 22,291 | $ | 11,615 | $ | 26,698 | $ | 26,121 | |||||||||||
Selected components of noninterest income | |||||||||||||||||||||
Accelerated discount on covered loans 1 | 1,572 | 1,711 | 1,935 | 1,935 | 2,455 | ||||||||||||||||
FDIC loss sharing income | (3,385 | ) | 5,555 | (7,384 | ) | 8,934 | 5,754 | ||||||||||||||
Gain on sale of investment securities | — | — | 188 | 1,536 | 1,011 | ||||||||||||||||
Other items not expected to recur | — | — | 442 | — | — | ||||||||||||||||
Total noninterest income excluding items noted above | $ | 14,856 | $ | 15,025 | $ | 16,434 | $ | 14,293 | $ | 16,901 | |||||||||||
1 Net of the corresponding valuation adjustment on the FDIC indemnification asset |
Table II | |||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||
(Dollars in thousands) | 2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||||||||
Total noninterest expense | $ | 70,285 | $ | 48,801 | $ | 53,283 | $ | 53,106 | $ | 53,474 | |||||||||||
Selected components of noninterest expense | |||||||||||||||||||||
Loss (gain) - covered real estate owned | 946 | 204 | (2,212 | ) | (157 | ) | (54 | ) | |||||||||||||
Loss sharing expense | 1,495 | 1,724 | 1,578 | 2,286 | 2,305 | ||||||||||||||||
Pension settlement charges | 462 | 1,396 | 4,316 | — | — | ||||||||||||||||
Expenses associated with efficiency initiative | 1,450 | 1,051 | 1,518 | 2,878 | 952 | ||||||||||||||||
FDIC indemnification asset valuation adjustment | 22,417 | — | — | — | — | ||||||||||||||||
Acquisition-related expenses | 284 | — | — | — | — | ||||||||||||||||
Other items not expected to recur | — | — | — | 390 | — | ||||||||||||||||
Total noninterest income excluding items noted above | $ | 43,231 | $ | 44,426 | $ | 48,083 | $ | 47,709 | $ | 50,271 | |||||||||||
FDIC loss share support 1 | $ | 844 | $ | 841 | $ | 795 | $ | 776 | $ | 798 | |||||||||||
1 Represents direct expenses associated with credit management and loan administration related to covered assets as well as compliance with FDIC loss sharing agreements; included in total noninterest expense excluding the items noted above and comprised of several noninterest expense line items; |
Table III | |||||||||||||||||||||
As of or for the Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||
(Dollars in thousands) | 2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||||||||
Total nonaccrual loans 1 | $ | 37,605 | $ | 57,926 | $ | 62,011 | $ | 64,452 | $ | 65,041 | |||||||||||
Troubled debt restructurings - accruing | 15,094 | 16,278 | 12,924 | 12,757 | 10,856 | ||||||||||||||||
Total nonperforming loans | 52,699 | 74,204 | 74,935 | 77,209 | 75,897 | ||||||||||||||||
Total nonperforming assets | 72,505 | 86,008 | 86,733 | 89,202 | 88,423 | ||||||||||||||||
Nonperforming assets as a % of: | |||||||||||||||||||||
Period-end loans plus OREO | 2.06 | % | 2.50 | % | 2.56 | % | 2.74 | % | 2.77 | % | |||||||||||
Total assets | 1.13 | % | 1.38 | % | 1.38 | % | 1.40 | % | 1.36 | % | |||||||||||
Nonperforming assets ex. accruing TDRs as a % of: | |||||||||||||||||||||
Period-end loans plus OREO | 1.63 | % | 2.03 | % | 2.17 | % | 2.34 | % | 2.43 | % | |||||||||||
Total assets | 0.89 | % | 1.12 | % | 1.18 | % | 1.20 | % | 1.19 | % | |||||||||||
Nonperforming loans as a % of total loans | 1.50 | % | 2.16 | % | 2.22 | % | 2.38 | % | 2.39 | % | |||||||||||
Provision for loan and lease losses - uncovered | $ | 1,851 | $ | 1,413 | $ | 2,409 | $ | 3,041 | $ | 3,882 | |||||||||||
Allowance for uncovered loan & lease losses | $ | 43,829 | $ | 45,514 | $ | 47,047 | $ | 48,306 | $ | 47,777 | |||||||||||
Allowance for loan & lease losses as a % of: | |||||||||||||||||||||
Total loans | 1.25 | % | 1.33 | % | 1.39 | % | 1.49 | % | 1.50 | % | |||||||||||
Nonaccrual loans | 116.6 | % | 78.6 | % | 75.9 | % | 75.0 | % | 73.5 | % | |||||||||||
Nonperforming loans | 83.2 | % | 61.3 | % | 62.8 | % | 62.6 | % | 63.0 | % | |||||||||||
Total net charge-offs | $ | 3,536 | $ | 2,946 | $ | 3,668 | $ | 2,512 | $ | 5,297 | |||||||||||
Annualized net-charge-offs as a % of average | |||||||||||||||||||||
loans & leases | 0.41 | % | 0.34 | % | 0.45 | % | 0.32 | % | 0.68 | % | |||||||||||
1 Includes nonaccrual troubled debt restructurings |
Table IV | ||||||||||||||||||||||
As of | ||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Percent | Percent | Percent | ||||||||||||||||||||
(Dollars in thousands) | Balance | of Total | Balance | of Total | Balance | of Total | ||||||||||||||||
Commercial | $ | 1,035,668 | 29.5 | % | $ | 960,016 | 28.0 | % | $ | 861,033 | 27.1 | % | ||||||||||
Real estate - construction | 80,741 | 2.3 | % | 90,089 | 2.6 | % | 73,517 | 2.3 | % | |||||||||||||
Real estate - commercial | 1,496,987 | 42.7 | % | 1,493,969 | 43.5 | % | 1,417,008 | 44.6 | % | |||||||||||||
Real estate - residential | 352,931 | 10.1 | % | 352,830 | 10.3 | % | 318,210 | 10.0 | % | |||||||||||||
Installment | 47,133 | 1.3 | % | 49,273 | 1.4 | % | 56,810 | 1.8 | % | |||||||||||||
Home equity | 376,454 | 10.7 | % | 373,839 | 10.9 | % | 367,500 | 11.6 | % | |||||||||||||
Credit card | 35,592 | 1.0 | % | 34,285 | 1.0 | % | 34,198 | 1.1 | % | |||||||||||||
Lease financing | 80,135 | 2.3 | % | 76,615 | 2.2 | % | 50,788 | 1.6 | % | |||||||||||||
Total | $ | 3,505,641 | 100.0 | % | $ | 3,430,916 | 100.0 | % | $ | 3,179,064 | 100.0 | % | ||||||||||
Table V | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Held-to- | Available-for | % of | |||||||||||||||||||
(Dollars in thousands) | Maturity | Sale | Other | Total | Portfolio | ||||||||||||||||
Debt obligations of the U.S. Government | $ | — | $ | 21,223 | $ | — | $ | 21,223 | 1.2 | % | |||||||||||
Debt obligations of U.S. Government Agency | 18,981 | 9,571 | — | 28,552 | 1.6 | % | |||||||||||||||
Residential Mortgage Backed Securities | |||||||||||||||||||||
Pass-through securities: | |||||||||||||||||||||
Agency fixed rate | 86,819 | 109,398 | — | 196,217 | 10.9 | % | |||||||||||||||
Agency adjustable rate | 145,019 | 41,667 | — | 186,686 | 10.4 | % | |||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
Agency fixed rate | 370,303 | 253,938 | — | 624,241 | 34.7 | % | |||||||||||||||
Agency variable rate | — | 82,137 | — | 82,137 | 4.6 | % | |||||||||||||||
Agency collateralized and insured municipal securities | 68,888 | 103,974 | — | 172,862 | 9.6 | % | |||||||||||||||
Commercial mortgage backed securities | 145,977 | 119,275 | — | 265,252 | 14.8 | % | |||||||||||||||
Municipal bond securities | 1,285 | 3,358 | — | 4,643 | 0.3 | % | |||||||||||||||
Corporate securities | — | 110,513 | — | 110,513 | 6.1 | % | |||||||||||||||
Asset-backed securities | — | 50,554 | — | 50,554 | 2.8 | % | |||||||||||||||
Regulatory stock | — | — | 42,576 | 42,576 | 2.4 | % | |||||||||||||||
Other | — | 7,993 | 4,851 | 12,844 | 0.7 | % | |||||||||||||||
$ | 837,272 | $ | 913,601 | $ | 47,427 | $ | 1,798,300 | 100.0 | % | ||||||||||||
Table VI | |||||||||||||
As of | |||||||||||||
December 31, | September 30, | December 31, | |||||||||||
2013 | 2013 | 2012 | |||||||||||
Leverage Ratio | 10.11 | % | 10.29 | % | 10.25 | % | |||||||
Tier 1 Capital Ratio | 14.61 | % | 15.26 | % | 16.32 | % | |||||||
Total Risk-Based Capital Ratio | 15.88 | % | 16.53 | % | 17.60 | % | |||||||
Ending tangible shareholders' equity | |||||||||||||
to ending tangible assets | 9.20 | % | 9.60 | % | 9.50 | % | |||||||
Ending tangible common shareholders' | |||||||||||||
equity to ending tangible assets | 9.20 | % | 9.60 | % | 9.50 | % | |||||||
Tangible book value per share | $ | 10.10 | $ | 10.24 | $ | 10.47 | |||||||
Contents | Page |
Consolidated Financial Highlights | 2 |
Consolidated Statements of Income | 3 |
Consolidated Quarterly Statements of Income | 4 - 5 |
Consolidated Statements of Condition | 6 |
Average Consolidated Statements of Condition | 7 |
Net Interest Margin Rate / Volume Analysis | 8 - 9 |
Credit Quality | 10 |
Capital Adequacy | 11 |
Supplemental Information on Covered Assets | 12 - 14 |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Three Months Ended, | Twelve months ended, | ||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
RESULTS OF OPERATIONS | |||||||||||||||||||||||||||
Net income | $ | 3,785 | $ | 14,911 | $ | 15,829 | $ | 13,824 | $ | 16,265 | $ | 48,349 | $ | 67,303 | |||||||||||||
Net earnings per share - basic | $ | 0.07 | $ | 0.26 | $ | 0.28 | $ | 0.24 | $ | 0.28 | $ | 0.84 | $ | 1.16 | |||||||||||||
Net earnings per share - diluted | $ | 0.07 | $ | 0.26 | $ | 0.27 | $ | 0.24 | $ | 0.28 | $ | 0.83 | $ | 1.14 | |||||||||||||
Dividends declared per share | $ | 0.15 | $ | 0.27 | $ | 0.24 | $ | 0.28 | $ | 0.28 | $ | 0.94 | $ | 1.18 | |||||||||||||
KEY FINANCIAL RATIOS | |||||||||||||||||||||||||||
Return on average assets | 0.24 | % | 0.96 | % | 1.01 | % | 0.88 | % | 1.03 | % | 0.77 | % | 1.07 | % | |||||||||||||
Return on average shareholders' equity | 2.15 | % | 8.53 | % | 9.02 | % | 7.91 | % | 9.06 | % | 6.89 | % | 9.43 | % | |||||||||||||
Return on average tangible shareholders' equity | 2.51 | % | 10.00 | % | 10.54 | % | 9.24 | % | 10.58 | % | 8.05 | % | 11.01 | % | |||||||||||||
Net interest margin | 3.90 | % | 3.91 | % | 4.02 | % | 4.04 | % | 4.27 | % | 3.97 | % | 4.37 | % | |||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.94 | % | 3.95 | % | 4.06 | % | 4.07 | % | 4.29 | % | 4.01 | % | 4.39 | % | |||||||||||||
Ending shareholders' equity as a percent of ending assets | 10.63 | % | 11.07 | % | 11.08 | % | 11.05 | % | 10.93 | % | 10.63 | % | 10.93 | % | |||||||||||||
Ending tangible shareholders' equity as a percent of: | |||||||||||||||||||||||||||
Ending tangible assets | 9.20 | % | 9.60 | % | 9.62 | % | 9.60 | % | 9.50 | % | 9.20 | % | 9.50 | % | |||||||||||||
Risk-weighted assets | 13.59 | % | 14.27 | % | 14.50 | % | 15.05 | % | 15.57 | % | 13.59 | % | 15.57 | % | |||||||||||||
Average shareholders' equity as a percent of average assets | 11.23 | % | 11.19 | % | 11.15 | % | 11.09 | % | 11.35 | % | 11.17 | % | 11.30 | % | |||||||||||||
Average tangible shareholders' equity as a percent of | |||||||||||||||||||||||||||
average tangible assets | 9.77 | % | 9.71 | % | 9.70 | % | 9.65 | % | 9.88 | % | 9.72 | % | 9.83 | % | |||||||||||||
Book value per share | $ | 11.86 | $ | 11.99 | $ | 12.05 | $ | 12.09 | $ | 12.24 | $ | 11.86 | $ | 12.24 | |||||||||||||
Tangible book value per share | $ | 10.10 | $ | 10.24 | $ | 10.29 | $ | 10.33 | $ | 10.47 | $ | 10.10 | $ | 10.47 | |||||||||||||
Tier 1 Ratio (2) | 14.61 | % | 15.26 | % | 15.41 | % | 15.87 | % | 16.32 | % | 14.61 | % | 16.32 | % | |||||||||||||
Total Capital Ratio (2) | 15.88 | % | 16.53 | % | 16.68 | % | 17.15 | % | 17.60 | % | 15.88 | % | 17.60 | % | |||||||||||||
Leverage Ratio (2) | 10.11 | % | 10.29 | % | 10.12 | % | 10.00 | % | 10.25 | % | 10.11 | % | 10.25 | % | |||||||||||||
AVERAGE BALANCE SHEET ITEMS | |||||||||||||||||||||||||||
Loans (3) | $ | 3,450,069 | $ | 3,410,102 | $ | 3,313,731 | $ | 3,205,781 | $ | 3,107,760 | $ | 3,345,768 | $ | 3,030,308 | |||||||||||||
Covered loans and FDIC indemnification asset | 568,385 | 655,654 | 758,875 | 840,190 | 920,102 | 704,894 | 1,050,114 | ||||||||||||||||||||
Investment securities | 1,654,374 | 1,589,666 | 1,705,219 | 1,838,783 | 1,746,961 | 1,696,211 | 1,682,821 | ||||||||||||||||||||
Interest-bearing deposits with other banks | 4,906 | 4,010 | 13,890 | 3,056 | 5,146 | 6,464 | 36,674 | ||||||||||||||||||||
Total earning assets | $ | 5,677,734 | $ | 5,659,432 | $ | 5,791,715 | $ | 5,887,810 | $ | 5,779,969 | $ | 5,753,337 | $ | 5,799,917 | |||||||||||||
Total assets | $ | 6,232,971 | $ | 6,193,722 | $ | 6,310,602 | $ | 6,391,049 | $ | 6,294,084 | $ | 6,281,411 | $ | 6,318,181 | |||||||||||||
Noninterest-bearing deposits | $ | 1,129,097 | $ | 1,072,259 | $ | 1,063,102 | $ | 1,049,943 | $ | 1,112,072 | $ | 1,078,800 | $ | 1,035,319 | |||||||||||||
Interest-bearing deposits | 3,720,809 | 3,654,311 | 3,792,891 | 3,785,402 | 3,912,854 | 3,737,946 | 4,169,175 | ||||||||||||||||||||
Total deposits | $ | 4,849,906 | $ | 4,726,570 | $ | 4,855,993 | $ | 4,835,345 | $ | 5,024,926 | $ | 4,816,746 | $ | 5,204,494 | |||||||||||||
Borrowings | $ | 583,522 | $ | 667,706 | $ | 644,058 | $ | 735,327 | $ | 439,308 | $ | 657,265 | $ | 273,798 | |||||||||||||
Shareholders' equity | $ | 700,063 | $ | 693,158 | $ | 703,804 | $ | 708,862 | $ | 714,373 | $ | 701,425 | $ | 713,717 | |||||||||||||
CREDIT QUALITY RATIOS (excluding covered assets) | |||||||||||||||||||||||||||
Allowance to ending loans | 1.25 | % | 1.33 | % | 1.39 | % | 1.49 | % | 1.5 | % | 1.25 | % | 1.50 | % | |||||||||||||
Allowance to nonaccrual loans | 116.55 | % | 78.57 | % | 75.87 | % | 74.95 | % | 73.46 | % | 116.55 | % | 73.46 | % | |||||||||||||
Allowance to nonperforming loans | 83.17 | % | 61.34 | % | 62.78 | % | 62.57 | % | 62.95 | % | 83.17 | % | 62.95 | % | |||||||||||||
Nonperforming loans to total loans | 1.50 | % | 2.16 | % | 2.22 | % | 2.38 | % | 2.39 | % | 1.50 | % | 2.39 | % | |||||||||||||
Nonperforming assets to ending loans, plus OREO | 2.06 | % | 2.50 | % | 2.56 | % | 2.74 | % | 2.77 | % | 2.06 | % | 2.77 | % | |||||||||||||
Nonperforming assets to total assets | 1.13 | % | 1.38 | % | 1.38 | % | 1.4 | % | 1.36 | % | 1.13 | % | 1.36 | % | |||||||||||||
Net charge-offs to average loans (annualized) | 0.41 | % | 0.34 | % | 0.45 | % | 0.32 | % | 0.68 | % | 0.38 | % | 0.79 | % |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended, | Twelve months ended, | ||||||||||||||||||||
Dec. 31, | Dec. 31, | ||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||||||
Interest income | |||||||||||||||||||||
Loans, including fees | $ | 52,351 | $ | 60,389 | (13.3 | )% | $ | 216,306 | $ | 249,751 | (13.4 | )% | |||||||||
Investment securities | |||||||||||||||||||||
Taxable | 9,209 | 8,410 | 9.5 | % | 34,147 | 37,664 | (9.3 | )% | |||||||||||||
Tax-exempt | 719 | 370 | 94.3 | % | 2,400 | 736 | 226.1 | % | |||||||||||||
Total investment securities interest | 9,928 | 8,780 | 13.1 | % | 36,547 | 38,400 | (4.8 | )% | |||||||||||||
Other earning assets | (2,432 | ) | (1,564 | ) | 55.5 | % | (7,645 | ) | (7,221 | ) | 5.9 | % | |||||||||
Total interest income | 59,847 | 67,605 | (11.5 | )% | 245,208 | 280,930 | (12.7 | )% | |||||||||||||
Interest expense | |||||||||||||||||||||
Deposits | 3,247 | 4,798 | (32.3 | )% | 13,247 | 24,625 | (46.2 | )% | |||||||||||||
Short-term borrowings | 257 | 159 | 61.6 | % | 1,177 | 262 | 349.2 | % | |||||||||||||
Long-term borrowings | 539 | 672 | (19.8 | )% | 2,464 | 2,702 | (8.8 | )% | |||||||||||||
Total interest expense | 4,043 | 5,629 | (28.2 | )% | 16,888 | 27,589 | (38.8 | )% | |||||||||||||
Net interest income | 55,804 | 61,976 | (10.0 | )% | 228,320 | 253,341 | (9.9 | )% | |||||||||||||
Provision for loan and lease losses - uncovered | 1,851 | 3,882 | (52.3 | )% | 8,714 | 19,117 | (54.4 | )% | |||||||||||||
Provision for loan and lease losses - covered | (5,857 | ) | 5,283 | (210.9 | )% | 195 | 30,903 | (99.4 | )% | ||||||||||||
Net interest income after provision for loan and lease losses | 59,810 | 52,811 | 13.3 | % | 219,411 | 203,321 | 7.9 | % | |||||||||||||
Noninterest income | |||||||||||||||||||||
Service charges on deposit accounts | 5,226 | 5,431 | (3.8 | )% | 20,595 | 21,215 | (2.9 | )% | |||||||||||||
Trust and wealth management fees | 3,506 | 3,409 | 2.8 | % | 14,319 | 13,951 | 2.6 | % | |||||||||||||
Bankcard income | 2,699 | 2,526 | 6.8 | % | 10,914 | 10,028 | 8.8 | % | |||||||||||||
Net gains from sales of loans | 604 | 1,179 | (48.8 | )% | 3,150 | 4,570 | (31.1 | )% | |||||||||||||
Gain on sale of investment securities | 0 | 1,011 | (100.0 | )% | 1,724 | 3,628 | (52.5 | )% | |||||||||||||
FDIC loss sharing income | (3,385 | ) | 5,754 | (158.8 | )% | 3,720 | 35,346 | (89.5 | )% | ||||||||||||
Accelerated discount on covered loans | 1,572 | 2,455 | (36.0 | )% | 7,153 | 13,662 | (47.6 | )% | |||||||||||||
Other | 2,821 | 4,356 | (35.2 | )% | 12,072 | 20,021 | (39.7 | )% | |||||||||||||
Total noninterest income | 13,043 | 26,121 | (50.1 | )% | 73,647 | 122,421 | (39.8 | )% | |||||||||||||
Noninterest expenses | |||||||||||||||||||||
Salaries and employee benefits | 24,023 | 28,033 | (14.3 | )% | 101,402 | 113,154 | (10.4 | )% | |||||||||||||
Pension settlement charges | 462 | 0 | N/M | 6,174 | 0 | N/M | |||||||||||||||
Net occupancy | 4,557 | 5,122 | (11.0 | )% | 21,207 | 20,682 | 2.5 | % | |||||||||||||
Furniture and equipment | 2,136 | 2,291 | (6.8 | )% | 8,970 | 9,190 | (2.4 | )% | |||||||||||||
Data processing | 2,617 | 2,526 | 3.6 | % | 10,229 | 8,837 | 15.8 | % | |||||||||||||
Marketing | 999 | 1,566 | (36.2 | )% | 4,270 | 5,550 | (23.1 | )% | |||||||||||||
Communication | 728 | 814 | (10.6 | )% | 3,207 | 3,409 | (5.9 | )% | |||||||||||||
Professional services | 1,781 | 1,667 | 6.8 | % | 6,876 | 7,269 | (5.4 | )% | |||||||||||||
State intangible tax | 901 | 942 | (4.4 | )% | 3,929 | 3,899 | 0.8 | % | |||||||||||||
FDIC assessments | 1,121 | 1,085 | 3.3 | % | 4,501 | 4,682 | (3.9 | )% | |||||||||||||
Loss (gain) - other real estate owned | 348 | 569 | (38.8 | )% | 1,250 | 3,250 | (61.5 | )% | |||||||||||||
Loss (gain) - covered other real estate owned | 946 | (54 | ) | (1,851.9 | )% | (1,219 | ) | 2,446 | (149.8 | )% | |||||||||||
Loss sharing expense | 1,495 | 2,305 | (35.1 | )% | 7,083 | 10,725 | (34.0 | )% | |||||||||||||
FDIC indemnification impairment | 22,417 | 0 | N/M | 22,417 | 0 | N/M | |||||||||||||||
Other | 5,754 | 6,608 | (12.9 | )% | 25,179 | 28,904 | (12.9 | )% | |||||||||||||
Total noninterest expenses | 70,285 | 53,474 | 31.4 | % | 225,475 | 221,997 | 1.6 | % | |||||||||||||
Income before income taxes | 2,568 | 25,458 | (89.9 | )% | 67,583 | 103,745 | (34.9 | )% | |||||||||||||
Income tax expense | (1,217 | ) | 9,193 | (113.2 | )% | 19,234 | 36,442 | (47.2 | )% | ||||||||||||
Net income | $ | 3,785 | $ | 16,265 | (76.7 | )% | $ | 48,349 | $ | 67,303 | (28.2 | )% | |||||||||
ADDITIONAL DATA | |||||||||||||||||||||
Net earnings per share - basic | $ | 0.07 | $ | 0.28 | $ | 0.84 | $ | 1.16 | |||||||||||||
Net earnings per share - diluted | $ | 0.07 | $ | 0.28 | $ | 0.83 | $ | 1.14 | |||||||||||||
Dividends declared per share | $ | 0.15 | $ | 0.28 | $ | 0.94 | $ | 1.18 | |||||||||||||
Return on average assets | 0.24 | % | 1.03 | % | 0.77 | % | 1.07 | % | |||||||||||||
Return on average shareholders' equity | 2.15 | % | 9.06 | % | 6.89 | % | 9.43 | % | |||||||||||||
Interest income | $ | 59,847 | $ | 67,605 | (11.5 | )% | $ | 245,208 | $ | 280,930 | (12.7 | )% | |||||||||
Tax equivalent adjustment | 635 | 366 | 73.5 | % | 2,142 | 1,055 | 103.0 | % | |||||||||||||
Interest income - tax equivalent | 60,482 | 67,971 | (11.0 | )% | 247,350 | 281,985 | (12.3 | )% | |||||||||||||
Interest expense | 4,043 | 5,629 | (28.2 | )% | 16,888 | 27,589 | (38.8 | )% | |||||||||||||
Net interest income - tax equivalent | $ | 56,439 | $ | 62,342 | (9.5 | )% | $ | 230,462 | $ | 254,396 | (9.4 | )% | |||||||||
Net interest margin | 3.90 | % | 4.27 | % | 3.97 | % | 4.37 | % | |||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.94 | % | 4.29 | % | 4.01 | % | 4.39 | % | |||||||||||||
Full-time equivalent employees | 1,306 | 1,439 | |||||||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provided useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. | |||||||||||||||||||||
N/M = Not meaningful. |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | |||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Fourth | Third | Second | First | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | YTD | Linked Qtr. | ||||||||||||||||||
Interest income | |||||||||||||||||||||||
Loans, including fees | $ | 52,351 | $ | 52,908 | $ | 55,022 | $ | 56,025 | $ | 216,306 | (1.1 | )% | |||||||||||
Investment securities | |||||||||||||||||||||||
Taxable | 9,209 | 8,267 | 8,295 | 8,376 | 34,147 | 11.4 | % | ||||||||||||||||
Tax-exempt | 719 | 541 | 560 | 580 | 2,400 | 32.9 | % | ||||||||||||||||
Total investment securities interest | 9,928 | 8,808 | 8,855 | 8,956 | 36,547 | 12.7 | % | ||||||||||||||||
Other earning assets | (2,432 | ) | (2,185 | ) | (1,556 | ) | (1,472 | ) | (7,645 | ) | 11.3 | % | |||||||||||
Total interest income | 59,847 | 59,531 | 62,321 | 63,509 | 245,208 | 0.5 | % | ||||||||||||||||
Interest expense | |||||||||||||||||||||||
Deposits | 3,247 | 2,856 | 3,284 | 3,860 | 13,247 | 13.7 | % | ||||||||||||||||
Short-term borrowings | 257 | 286 | 305 | 329 | 1,177 | (10.1 | )% | ||||||||||||||||
Long-term borrowings | 539 | 617 | 654 | 654 | 2,464 | (12.6 | )% | ||||||||||||||||
Total interest expense | 4,043 | 3,759 | 4,243 | 4,843 | 16,888 | 7.6 | % | ||||||||||||||||
Net interest income | 55,804 | 55,772 | 58,078 | 58,666 | 228,320 | 0.1 | % | ||||||||||||||||
Provision for loan and lease losses - uncovered | 1,851 | 1,413 | 2,409 | 3,041 | 8,714 | 31.0 | % | ||||||||||||||||
Provision for loan and lease losses - covered | (5,857 | ) | 5,293 | (8,283 | ) | 9,042 | 195 | (210.7 | )% | ||||||||||||||
Net interest income after provision for loan and lease losses | 59,810 | 49,066 | 63,952 | 46,583 | 219,411 | 21.9 | % | ||||||||||||||||
Noninterest income | |||||||||||||||||||||||
Service charges on deposit accounts | 5,226 | 5,447 | 5,205 | 4,717 | 20,595 | (4.1 | )% | ||||||||||||||||
Trust and wealth management fees | 3,506 | 3,366 | 3,497 | 3,950 | 14,319 | 4.2 | % | ||||||||||||||||
Bankcard income | 2,699 | 2,637 | 3,145 | 2,433 | 10,914 | 2.4 | % | ||||||||||||||||
Net gains from sales of loans | 604 | 751 | 1,089 | 706 | 3,150 | (19.6 | )% | ||||||||||||||||
Gain on sale of investment securities | 0 | 0 | 188 | 1,536 | 1,724 | N/M | |||||||||||||||||
FDIC loss sharing income | (3,385 | ) | 5,555 | (7,384 | ) | 8,934 | 3,720 | (160.9 | )% | ||||||||||||||
Accelerated discount on covered loans | 1,572 | 1,711 | 1,935 | 1,935 | 7,153 | (8.1 | )% | ||||||||||||||||
Other | 2,821 | 2,824 | 3,940 | 2,487 | 12,072 | (0.1 | )% | ||||||||||||||||
Total noninterest income | 13,043 | 22,291 | 11,615 | 26,698 | 73,647 | (41.5 | )% | ||||||||||||||||
Noninterest expenses | |||||||||||||||||||||||
Salaries and employee benefits | 24,023 | 23,834 | 26,216 | 27,329 | 101,402 | 0.8 | % | ||||||||||||||||
Pension settlement charges | 462 | 1,396 | 4,316 | 0 | 6,174 | (66.9 | )% | ||||||||||||||||
Net occupancy | 4,557 | 5,101 | 5,384 | 6,165 | 21,207 | (10.7 | )% | ||||||||||||||||
Furniture and equipment | 2,136 | 2,213 | 2,250 | 2,371 | 8,970 | (3.5 | )% | ||||||||||||||||
Data processing | 2,617 | 2,584 | 2,559 | 2,469 | 10,229 | 1.3 | % | ||||||||||||||||
Marketing | 999 | 1,192 | 1,182 | 897 | 4,270 | (16.2 | )% | ||||||||||||||||
Communication | 728 | 865 | 781 | 833 | 3,207 | (15.8 | )% | ||||||||||||||||
Professional services | 1,781 | 1,528 | 1,764 | 1,803 | 6,876 | 16.6 | % | ||||||||||||||||
State intangible tax | 901 | 1,010 | 1,004 | 1,014 | 3,929 | (10.8 | )% | ||||||||||||||||
FDIC assessments | 1,121 | 1,107 | 1,148 | 1,125 | 4,501 | 1.3 | % | ||||||||||||||||
Loss (gain) - other real estate owned | 348 | 184 | 216 | 502 | 1,250 | 89.1 | % | ||||||||||||||||
Loss (gain) - covered other real estate owned | 946 | 204 | (2,212 | ) | (157 | ) | (1,219 | ) | 363.7 | % | |||||||||||||
Loss sharing expense | 1,495 | 1,724 | 1,578 | 2,286 | 7,083 | (13.3 | )% | ||||||||||||||||
FDIC indemnification impairment | 22,417 | 0 | 0 | 0 | 22,417 | N/M | |||||||||||||||||
Other | 5,754 | 5,859 | 7,097 | 6,469 | 25,179 | (1.8 | )% | ||||||||||||||||
Total noninterest expenses | 70,285 | 48,801 | 53,283 | 53,106 | 225,475 | 44.0 | % | ||||||||||||||||
Income before income taxes | 2,568 | 22,556 | 22,284 | 20,175 | 67,583 | (88.6 | )% | ||||||||||||||||
Income tax expense | (1,217 | ) | 7,645 | 6,455 | 6,351 | 19,234 | (115.9 | )% | |||||||||||||||
Net income | $ | 3,785 | $ | 14,911 | $ | 15,829 | $ | 13,824 | $ | 48,349 | (74.6 | )% | |||||||||||
ADDITIONAL DATA | |||||||||||||||||||||||
Net earnings per share - basic | $ | 0.07 | $ | 0.26 | $ | 0.28 | $ | 0.24 | $ | 0.84 | |||||||||||||
Net earnings per share - diluted | $ | 0.07 | $ | 0.26 | $ | 0.27 | $ | 0.24 | $ | 0.83 | |||||||||||||
Dividends declared per share | $ | 0.15 | $ | 0.27 | $ | 0.24 | $ | 0.28 | $ | 0.94 | |||||||||||||
Return on average assets | 0.24 | % | 0.96 | % | 1.01 | % | 0.88 | % | 0.77 | % | |||||||||||||
Return on average shareholders' equity | 2.15 | % | 8.53 | % | 9.02 | % | 7.91 | % | 6.89 | % | |||||||||||||
Interest income | $ | 59,847 | $ | 59,531 | $ | 62,321 | $ | 63,509 | $ | 245,208 | 0.5 | % | |||||||||||
Tax equivalent adjustment | 635 | 516 | 514 | 477 | 2,142 | 23.1 | % | ||||||||||||||||
Interest income - tax equivalent | 60,482 | 60,047 | 62,835 | 63,986 | 247,350 | 0.7 | % | ||||||||||||||||
Interest expense | 4,043 | 3,759 | 4,243 | 4,843 | 16,888 | 7.6 | % | ||||||||||||||||
Net interest income - tax equivalent | $ | 56,439 | $ | 56,288 | $ | 58,592 | $ | 59,143 | $ | 230,462 | 0.3 | % | |||||||||||
Net interest margin | 3.90 | % | 3.91 | % | 4.02 | % | 4.04 | % | 3.97 | % | |||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.94 | % | 3.95 | % | 4.06 | % | 4.07 | % | 4.01 | % | |||||||||||||
Full-time equivalent employees | 1,306 | 1,292 | 1,338 | 1,385 | |||||||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provided 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) | ||||||||||||||||||||
2012 | ||||||||||||||||||||
Fourth | Third | Second | First | Full | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Interest income | ||||||||||||||||||||
Loans, including fees | $ | 60,389 | $ | 59,536 | $ | 63,390 | $ | 66,436 | $ | 249,751 | ||||||||||
Investment securities | ||||||||||||||||||||
Taxable | 8,410 | 8,358 | 10,379 | 10,517 | 37,664 | |||||||||||||||
Tax-exempt | 370 | 111 | 121 | 134 | 736 | |||||||||||||||
Total investment securities interest | 8,780 | 8,469 | 10,500 | 10,651 | 38,400 | |||||||||||||||
Other earning assets | (1,564 | ) | (1,700 | ) | (1,967 | ) | (1,990 | ) | (7,221 | ) | ||||||||||
Total interest income | 67,605 | 66,305 | 71,923 | 75,097 | 280,930 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 4,798 | 5,730 | 6,381 | 7,716 | 24,625 | |||||||||||||||
Short-term borrowings | 159 | 54 | 37 | 12 | 262 | |||||||||||||||
Long-term borrowings | 672 | 675 | 675 | 680 | 2,702 | |||||||||||||||
Total interest expense | 5,629 | 6,459 | 7,093 | 8,408 | 27,589 | |||||||||||||||
Net interest income | 61,976 | 59,846 | 64,830 | 66,689 | 253,341 | |||||||||||||||
Provision for loan and lease losses - uncovered | 3,882 | 3,613 | 8,364 | 3,258 | 19,117 | |||||||||||||||
Provision for loan and lease losses - covered | 5,283 | 6,622 | 6,047 | 12,951 | 30,903 | |||||||||||||||
Net interest income after provision for loan and lease losses | 52,811 | 49,611 | 50,419 | 50,480 | 203,321 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Service charges on deposit accounts | 5,431 | 5,499 | 5,376 | 4,909 | 21,215 | |||||||||||||||
Trust and wealth management fees | 3,409 | 3,374 | 3,377 | 3,791 | 13,951 | |||||||||||||||
Bankcard income | 2,526 | 2,387 | 2,579 | 2,536 | 10,028 | |||||||||||||||
Net gains from sales of loans | 1,179 | 1,319 | 1,132 | 940 | 4,570 | |||||||||||||||
Gain on sale of investment securities | 1,011 | 2,617 | 0 | 0 | 3,628 | |||||||||||||||
FDIC loss sharing income | 5,754 | 8,496 | 8,280 | 12,816 | 35,346 | |||||||||||||||
Accelerated discount on covered loans | 2,455 | 3,798 | 3,764 | 3,645 | 13,662 | |||||||||||||||
Other | 4,356 | 3,340 | 9,037 | 3,288 | 20,021 | |||||||||||||||
Total noninterest income | 26,121 | 30,830 | 33,545 | 31,925 | 122,421 | |||||||||||||||
Noninterest expenses | ||||||||||||||||||||
Salaries and employee benefits | 28,033 | 27,212 | 29,048 | 28,861 | 113,154 | |||||||||||||||
Net occupancy | 5,122 | 5,153 | 5,025 | 5,382 | 20,682 | |||||||||||||||
Furniture and equipment | 2,291 | 2,332 | 2,323 | 2,244 | 9,190 | |||||||||||||||
Data processing | 2,526 | 2,334 | 2,076 | 1,901 | 8,837 | |||||||||||||||
Marketing | 1,566 | 1,592 | 1,238 | 1,154 | 5,550 | |||||||||||||||
Communication | 814 | 788 | 913 | 894 | 3,409 | |||||||||||||||
Professional services | 1,667 | 1,304 | 2,151 | 2,147 | 7,269 | |||||||||||||||
State intangible tax | 942 | 961 | 970 | 1,026 | 3,899 | |||||||||||||||
FDIC assessments | 1,085 | 1,164 | 1,270 | 1,163 | 4,682 | |||||||||||||||
Loss (gain) - other real estate owned | 569 | 1,372 | 313 | 996 | 3,250 | |||||||||||||||
Loss (gain) - covered other real estate owned | (54 | ) | (25 | ) | 1,233 | 1,292 | 2,446 | |||||||||||||
Loss sharing expense | 2,305 | 3,584 | 3,085 | 1,751 | 10,725 | |||||||||||||||
Other | 6,608 | 7,515 | 7,814 | 6,967 | 28,904 | |||||||||||||||
Total noninterest expenses | 53,474 | 55,286 | 57,459 | 55,778 | 221,997 | |||||||||||||||
Income before income taxes | 25,458 | 25,155 | 26,505 | 26,627 | 103,745 | |||||||||||||||
Income tax expense | 9,193 | 8,913 | 8,703 | 9,633 | 36,442 | |||||||||||||||
Net income | $ | 16,265 | $ | 16,242 | $ | 17,802 | $ | 16,994 | $ | 67,303 | ||||||||||
ADDITIONAL DATA | ||||||||||||||||||||
Net earnings per share - basic | $ | 0.28 | $ | 0.28 | $ | 0.31 | $ | 0.29 | $ | 1.16 | ||||||||||
Net earnings per share - diluted | $ | 0.28 | $ | 0.28 | $ | 0.30 | $ | 0.29 | $ | 1.14 | ||||||||||
Dividends declared per share | $ | 0.28 | $ | 0.30 | $ | 0.29 | $ | 0.31 | $ | 1.18 | ||||||||||
Return on average assets | 1.03 | % | 1.05 | % | 1.13 | % | 1.05 | % | 1.07 | % | ||||||||||
Return on average shareholders' equity | 9.06 | % | 9.01 | % | 9.98 | % | 9.67 | % | 9.43 | % | ||||||||||
Interest income | $ | 67,605 | $ | 66,305 | $ | 71,923 | $ | 75,097 | $ | 280,930 | ||||||||||
Tax equivalent adjustment | 366 | 255 | 216 | 218 | 1,055 | |||||||||||||||
Interest income - tax equivalent | 67,971 | 66,560 | 72,139 | 75,315 | 281,985 | |||||||||||||||
Interest expense | 5,629 | 6,459 | 7,093 | 8,408 | 27,589 | |||||||||||||||
Net interest income - tax equivalent | $ | 62,342 | $ | 60,101 | $ | 65,046 | $ | 66,907 | $ | 254,396 | ||||||||||
Net interest margin | 4.27 | % | 4.21 | % | 4.49 | % | 4.51 | % | 4.37 | % | ||||||||||
Net interest margin (fully tax equivalent) (1) | 4.29 | % | 4.23 | % | 4.50 | % | 4.52 | % | 4.39 | % | ||||||||||
Full-time equivalent employees | 1,439 | 1,475 | 1,525 | 1,513 | ||||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provided 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) | |||||||||||||||||||||||||
Dec. 30, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | % Change | % Change | |||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | Linked Qtr. | Comparable Qtr. | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Cash and due from banks | $ | 117,620 | $ | 177,698 | $ | 114,745 | $ | 106,249 | $ | 134,502 | (33.8 | )% | (12.6 | )% | |||||||||||
Interest-bearing deposits with other banks | 25,830 | 10,414 | 2,671 | 1,170 | 24,341 | 148.0 | % | 6.1 | % | ||||||||||||||||
Investment securities available-for-sale | 913,601 | 854,747 | 884,694 | 952,039 | 1,032,096 | 6.9 | % | (11.5 | )% | ||||||||||||||||
Investment securities held-to-maturity | 837,272 | 669,093 | 670,246 | 716,214 | 770,755 | 25.1 | % | 8.6 | % | ||||||||||||||||
Other investments | 47,427 | 75,945 | 75,645 | 75,375 | 71,492 | (37.6 | )% | (33.7 | )% | ||||||||||||||||
Loans held for sale | 8,114 | 10,704 | 18,650 | 28,126 | 16,256 | (24.2 | )% | (50.1 | )% | ||||||||||||||||
Loans | |||||||||||||||||||||||||
Commercial | 1,035,668 | 960,016 | 940,420 | 892,381 | 861,033 | 7.9 | % | 20.3 | % | ||||||||||||||||
Real estate - construction | 80,741 | 90,089 | 97,246 | 87,542 | 73,517 | (10.4 | )% | 9.8 | % | ||||||||||||||||
Real estate - commercial | 1,496,987 | 1,493,969 | 1,477,226 | 1,433,182 | 1,417,008 | 0.2 | % | 5.6 | % | ||||||||||||||||
Real estate - residential | 352,931 | 352,830 | 343,016 | 330,260 | 318,210 | 0.0 | % | 10.9 | % | ||||||||||||||||
Installment | 47,133 | 49,273 | 50,781 | 53,509 | 56,810 | (4.3 | )% | (17.0 | )% | ||||||||||||||||
Home equity | 376,454 | 373,839 | 370,206 | 365,943 | 367,500 | 0.7 | % | 2.4 | % | ||||||||||||||||
Credit card | 35,592 | 34,285 | 33,222 | 32,465 | 34,198 | 3.8 | % | 4.1 | % | ||||||||||||||||
Lease financing | 80,135 | 76,615 | 70,011 | 53,556 | 50,788 | 4.6 | % | 57.8 | % | ||||||||||||||||
Total loans, excluding covered loans | 3,505,641 | 3,430,916 | 3,382,128 | 3,248,838 | 3,179,064 | 2.2 | % | 10.3 | % | ||||||||||||||||
Less | |||||||||||||||||||||||||
Allowance for loan and lease losses | 43,829 | 45,514 | 47,047 | 48,306 | 47,777 | (3.7 | )% | (8.3 | )% | ||||||||||||||||
Net loans - uncovered | 3,461,812 | 3,385,402 | 3,335,081 | 3,200,532 | 3,131,287 | 2.3 | % | 10.6 | % | ||||||||||||||||
Covered loans | 457,873 | 518,524 | 622,265 | 687,798 | 748,116 | (11.7 | )% | (38.8 | )% | ||||||||||||||||
Less | |||||||||||||||||||||||||
Allowance for loan and lease losses | 18,901 | 23,259 | 32,961 | 45,496 | 45,190 | (18.7 | )% | (58.2 | )% | ||||||||||||||||
Net loans - covered | 438,972 | 495,265 | 589,304 | 642,302 | 702,926 | (11.4 | )% | (37.6 | )% | ||||||||||||||||
Net loans | 3,900,784 | 3,880,667 | 3,924,385 | 3,842,834 | 3,834,213 | 0.5 | % | 1.7 | % | ||||||||||||||||
Premises and equipment | 137,110 | 139,125 | 142,675 | 146,889 | 146,716 | (1.4 | )% | (6.5 | )% | ||||||||||||||||
Goodwill | 95,050 | 95,050 | 95,050 | 95,050 | 95,050 | 0.0 | % | 0.0 | % | ||||||||||||||||
Other intangibles | 5,924 | 6,249 | 6,620 | 7,078 | 7,648 | (5.2 | )% | (22.5 | )% | ||||||||||||||||
FDIC indemnification asset | 45,091 | 78,132 | 88,966 | 112,428 | 119,607 | (42.3 | )% | (62.3 | )% | ||||||||||||||||
Accrued interest and other assets | 283,390 | 255,617 | 250,228 | 265,565 | 244,372 | 10.9 | % | 16.0 | % | ||||||||||||||||
Total Assets | $ | 6,417,213 | $ | 6,253,441 | $ | 6,274,575 | $ | 6,349,017 | $ | 6,497,048 | 2.6 | % | (1.2 | )% | |||||||||||
LIABILITIES | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Interest-bearing demand | $ | 1,125,723 | $ | 1,068,067 | $ | 1,131,466 | $ | 1,113,940 | $ | 1,160,815 | 5.4 | % | (3.0 | )% | |||||||||||
Savings | 1,612,005 | 1,593,895 | 1,601,122 | 1,620,874 | 1,623,614 | 1.1 | % | (0.7 | )% | ||||||||||||||||
Time | 952,327 | 926,029 | 978,680 | 1,030,124 | 1,068,637 | 2.8 | % | (10.9 | )% | ||||||||||||||||
Total interest-bearing deposits | 3,690,055 | 3,587,991 | 3,711,268 | 3,764,938 | 3,853,066 | 2.8 | % | (4.2 | )% | ||||||||||||||||
Noninterest-bearing | 1,147,452 | 1,141,016 | 1,059,368 | 1,056,409 | 1,102,774 | 0.6 | % | 4.1 | % | ||||||||||||||||
Total deposits | 4,837,507 | 4,729,007 | 4,770,636 | 4,821,347 | 4,955,840 | 2.3 | % | (2.4 | )% | ||||||||||||||||
Federal funds purchased and securities sold | |||||||||||||||||||||||||
under agreements to repurchase | 94,749 | 105,472 | 114,030 | 130,863 | 122,570 | (10.2 | )% | (22.7 | )% | ||||||||||||||||
FHLB short-term borrowings | 654,000 | 518,200 | 505,900 | 502,200 | 502,000 | 26.2 | % | 30.3 | % | ||||||||||||||||
Total short-term borrowings | 748,749 | 623,672 | 619,930 | 633,063 | 624,570 | 20.1 | % | 19.9 | % | ||||||||||||||||
Long-term debt | 60,780 | 61,088 | 73,957 | 74,498 | 75,202 | (0.5 | )% | (19.2 | )% | ||||||||||||||||
Total borrowed funds | 809,529 | 684,760 | 693,887 | 707,561 | 699,772 | 18.2 | % | 15.7 | % | ||||||||||||||||
Accrued interest and other liabilities | 88,016 | 147,635 | 114,600 | 118,495 | 131,011 | (40.4 | )% | (32.8 | )% | ||||||||||||||||
Total Liabilities | 5,735,052 | 5,561,402 | 5,579,123 | 5,647,403 | 5,786,623 | 3.1 | % | (0.9 | )% | ||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
Common stock | 577,076 | 577,429 | 576,641 | 575,514 | 579,293 | (0.1 | )% | (0.4 | )% | ||||||||||||||||
Retained earnings | 324,192 | 328,993 | 329,633 | 327,635 | 330,004 | (1.5 | )% | (1.8 | )% | ||||||||||||||||
Accumulated other comprehensive loss | (31,281 | ) | (29,294 | ) | (25,645 | ) | (21,475 | ) | (18,677 | ) | 6.8 | % | 67.5 | % | |||||||||||
Treasury stock, at cost | (187,826 | ) | (185,089 | ) | (185,177 | ) | (180,060 | ) | (180,195 | ) | 1.5 | % | 4.2 | % | |||||||||||
Total Shareholders' Equity | 682,161 | 692,039 | 695,452 | 701,614 | 710,425 | (1.4 | )% | (4.0 | )% | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,417,213 | $ | 6,253,441 | $ | 6,274,575 | $ | 6,349,017 | $ | 6,497,048 | 2.6 | % | (1.2 | )% | |||||||||||
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | ||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Cash and due from banks | $ | 110,246 | $ | 120,154 | $ | 119,909 | $ | 111,599 | $ | 118,619 | $ | 115,486 | $ | 120,492 | |||||||||||||
Interest-bearing deposits with other banks | 4,906 | 4,010 | 13,890 | 3,056 | 5,146 | 6,464 | 36,674 | ||||||||||||||||||||
Investment securities | 1,654,374 | 1,589,666 | 1,705,219 | 1,838,783 | 1,746,961 | 1,696,211 | 1,682,821 | ||||||||||||||||||||
Loans held for sale | 7,990 | 13,349 | 19,722 | 21,096 | 18,054 | 15,497 | 20,848 | ||||||||||||||||||||
Loans | |||||||||||||||||||||||||||
Commercial | 986,438 | 937,939 | 904,029 | 863,427 | 819,262 | 923,336 | 827,205 | ||||||||||||||||||||
Real estate - construction | 79,194 | 93,103 | 93,813 | 81,171 | 85,219 | 86,832 | 97,278 | ||||||||||||||||||||
Real estate - commercial | 1,489,858 | 1,488,047 | 1,445,626 | 1,411,769 | 1,373,781 | 1,459,119 | 1,303,155 | ||||||||||||||||||||
Real estate - residential | 351,929 | 347,110 | 334,652 | 323,768 | 307,580 | 339,463 | 294,803 | ||||||||||||||||||||
Installment | 47,733 | 50,130 | 52,313 | 54,684 | 58,283 | 51,193 | 61,768 | ||||||||||||||||||||
Home equity | 374,919 | 371,072 | 367,408 | 365,568 | 368,605 | 369,771 | 363,470 | ||||||||||||||||||||
Credit card | 35,673 | 34,176 | 33,785 | 33,300 | 32,954 | 34,240 | 31,882 | ||||||||||||||||||||
Lease financing | 76,335 | 75,176 | 62,383 | 50,998 | 44,022 | 66,317 | 29,899 | ||||||||||||||||||||
Total loans, excluding covered loans | 3,442,079 | 3,396,753 | 3,294,009 | 3,184,685 | 3,089,706 | 3,330,271 | 3,009,460 | ||||||||||||||||||||
Less | |||||||||||||||||||||||||||
Allowance for loan and lease losses | 46,531 | 49,451 | 50,172 | 49,408 | 50,172 | 48,884 | 51,378 | ||||||||||||||||||||
Net loans - uncovered | 3,395,548 | 3,347,302 | 3,243,837 | 3,135,277 | 3,039,534 | 3,281,387 | 2,958,082 | ||||||||||||||||||||
Covered loans | 490,072 | 573,243 | 653,892 | 724,846 | 794,838 | 609,768 | 907,520 | ||||||||||||||||||||
Less | |||||||||||||||||||||||||||
Allowance for loan and lease losses | 21,733 | 31,208 | 41,861 | 46,104 | 48,553 | 35,149 | 48,711 | ||||||||||||||||||||
Net loans - covered | 468,339 | 542,035 | 612,031 | 678,742 | 746,285 | 574,619 | 858,809 | ||||||||||||||||||||
Net loans | 3,863,887 | 3,889,337 | 3,855,868 | 3,814,019 | 3,785,819 | 3,856,006 | 3,816,891 | ||||||||||||||||||||
Premises and equipment | 138,644 | 141,498 | 144,759 | 147,355 | 148,047 | 143,036 | 144,238 | ||||||||||||||||||||
Goodwill | 95,050 | 95,050 | 95,050 | 95,050 | 95,050 | 95,050 | 95,050 | ||||||||||||||||||||
Other intangibles | 6,075 | 6,428 | 6,831 | 7,346 | 8,001 | 6,666 | 9,240 | ||||||||||||||||||||
FDIC indemnification asset | 78,313 | 82,411 | 104,983 | 115,344 | 125,264 | 95,126 | 142,594 | ||||||||||||||||||||
Accrued interest and other assets | 273,486 | 251,819 | 244,371 | 237,401 | 243,123 | 251,869 | 249,333 | ||||||||||||||||||||
Total Assets | $ | 6,232,971 | $ | 6,193,722 | $ | 6,310,602 | $ | 6,391,049 | $ | 6,294,084 | $ | 6,281,411 | $ | 6,318,181 | |||||||||||||
LIABILITIES | |||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||
Interest-bearing demand | $ | 1,150,275 | $ | 1,098,524 | $ | 1,141,767 | $ | 1,112,664 | $ | 1,145,800 | $ | 1,125,836 | $ | 1,196,764 | |||||||||||||
Savings | 1,637,657 | 1,608,351 | 1,639,834 | 1,618,239 | 1,640,427 | 1,626,025 | 1,630,426 | ||||||||||||||||||||
Time | 932,877 | 947,436 | 1,011,290 | 1,054,499 | 1,126,627 | 986,085 | 1,341,985 | ||||||||||||||||||||
Total interest-bearing deposits | 3,720,809 | 3,654,311 | 3,792,891 | 3,785,402 | 3,912,854 | 3,737,946 | 4,169,175 | ||||||||||||||||||||
Noninterest-bearing | 1,129,097 | 1,072,259 | 1,063,102 | 1,049,943 | 1,112,072 | 1,078,800 | 1,035,319 | ||||||||||||||||||||
Total deposits | 4,849,906 | 4,726,570 | 4,855,993 | 4,835,345 | 5,024,926 | 4,816,746 | 5,204,494 | ||||||||||||||||||||
Federal funds purchased and securities sold | |||||||||||||||||||||||||||
under agreements to repurchase | 107,738 | 114,505 | 105,299 | 134,709 | 100,087 | 115,486 | 86,980 | ||||||||||||||||||||
FHLB short-term borrowings | 414,892 | 483,937 | 464,630 | 525,878 | 263,895 | 472,062 | 111,295 | ||||||||||||||||||||
Total short-term borrowings | 522,630 | 598,442 | 569,929 | 660,587 | 363,982 | 587,548 | 198,275 | ||||||||||||||||||||
Long-term debt | 60,892 | 69,264 | 74,129 | 74,740 | 75,326 | 69,717 | 75,523 | ||||||||||||||||||||
Total borrowed funds | 583,522 | 667,706 | 644,058 | 735,327 | 439,308 | 657,265 | 273,798 | ||||||||||||||||||||
Accrued interest and other liabilities | 99,480 | 106,288 | 106,747 | 111,515 | 115,477 | 105,975 | 126,172 | ||||||||||||||||||||
Total Liabilities | 5,532,908 | 5,500,564 | 5,606,798 | 5,682,187 | 5,579,711 | 5,579,986 | 5,604,464 | ||||||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
Common stock | 577,851 | 576,953 | 576,391 | 578,452 | 578,691 | 577,409 | 577,759 | ||||||||||||||||||||
Retained earnings | 337,034 | 329,518 | 329,795 | 330,879 | 331,414 | 331,817 | 329,615 | ||||||||||||||||||||
Accumulated other comprehensive loss | (28,380 | ) | (28,232 | ) | (19,204 | ) | (19,576 | ) | (19,612 | ) | (23,884 | ) | (18,987 | ) | |||||||||||||
Treasury stock, at cost | (186,442 | ) | (185,081 | ) | (183,178 | ) | (180,893 | ) | (176,120 | ) | (183,917 | ) | (174,670 | ) | |||||||||||||
Total Shareholders' Equity | 700,063 | 693,158 | 703,804 | 708,862 | 714,373 | 701,425 | 713,717 | ||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,232,971 | $ | 6,193,722 | $ | 6,310,602 | $ | 6,391,049 | $ | 6,294,084 | $ | 6,281,411 | $ | 6,318,181 | |||||||||||||
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||||||||
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||
Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | ||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Investment securities | $ | 1,654,374 | 2.38 | % | $ | 1,589,666 | 2.20 | % | $ | 1,746,961 | 1.99 | % | $ | 1,696,211 | 2.15 | % | $ | 1,682,821 | 2.28 | % | |||||||||||||||
Interest-bearing deposits with other banks | 4,906 | 0.57 | % | 4,010 | 0.49 | % | 5,146 | 0.54 | % | 6,464 | 0.42 | % | 36,674 | 0.30 | % | ||||||||||||||||||||
Gross loans (2) | 4,018,454 | 4.93 | % | 4,065,756 | 4.95 | % | 4,027,862 | 5.79 | % | 4,050,662 | 5.15 | % | 4,080,422 | 5.94 | % | ||||||||||||||||||||
Total earning assets | 5,677,734 | 4.18 | % | 5,659,432 | 4.17 | % | 5,779,969 | 4.64 | % | 5,753,337 | 4.26 | % | 5,799,917 | 4.84 | % | ||||||||||||||||||||
Nonearning assets | |||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (68,264 | ) | (80,659 | ) | (98,725 | ) | (84,033 | ) | (100,089 | ) | |||||||||||||||||||||||||
Cash and due from banks | 110,246 | 120,154 | 118,619 | 115,486 | 120,492 | ||||||||||||||||||||||||||||||
Accrued interest and other assets | 513,255 | 494,795 | 494,221 | 496,621 | 497,861 | ||||||||||||||||||||||||||||||
Total assets | $ | 6,232,971 | $ | 6,193,722 | $ | 6,294,084 | $ | 6,281,411 | $ | 6,318,181 | |||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 1,150,275 | 0.19 | % | $ | 1,098,524 | 0.12 | % | $ | 1,145,800 | 0.13 | % | $ | 1,125,836 | 0.13 | % | $ | 1,196,764 | 0.13 | % | |||||||||||||||
Savings | 1,637,657 | 0.15 | % | 1,608,351 | 0.09 | % | 1,640,427 | 0.11 | % | 1,626,025 | 0.11 | % | 1,630,426 | 0.12 | % | ||||||||||||||||||||
Time | 932,877 | 0.90 | % | 947,436 | 0.90 | % | 1,126,627 | 1.40 | % | 986,085 | 1.01 | % | 1,341,985 | 1.57 | % | ||||||||||||||||||||
Total interest-bearing deposits | 3,720,809 | 0.35 | % | 3,654,311 | 0.31 | % | 3,912,854 | 0.49 | % | 3,737,946 | 0.35 | % | 4,169,175 | 0.59 | % | ||||||||||||||||||||
Borrowed funds | |||||||||||||||||||||||||||||||||||
Short-term borrowings | 522,630 | 0.20 | % | 598,442 | 0.19 | % | 363,982 | 0.17 | % | 587,548 | 0.20 | % | 198,275 | 0.13 | % | ||||||||||||||||||||
Long-term debt | 60,892 | 3.51 | % | 69,264 | 3.53 | % | 75,326 | 3.54 | % | 69,717 | 3.53 | % | 75,523 | 3.58 | % | ||||||||||||||||||||
Total borrowed funds | 583,522 | 0.54 | % | 667,706 | 0.54 | % | 439,308 | 0.75 | % | 657,265 | 0.55 | % | 273,798 | 1.08 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 4,304,331 | 0.37 | % | 4,322,017 | 0.35 | % | 4,352,162 | 0.51 | % | 4,395,211 | 0.38 | % | 4,442,973 | 0.62 | % | ||||||||||||||||||||
Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,129,097 | 1,072,259 | 1,112,072 | 1,078,800 | 1,035,319 | ||||||||||||||||||||||||||||||
Other liabilities | 99,480 | 106,288 | 115,477 | 105,975 | 126,172 | ||||||||||||||||||||||||||||||
Shareholders' equity | 700,063 | 693,158 | 714,373 | 701,425 | 713,717 | ||||||||||||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 6,232,971 | $ | 6,193,722 | $ | 6,294,084 | $ | 6,281,411 | $ | 6,318,181 | |||||||||||||||||||||||||
Net interest income (1) | $ | 55,804 | $ | 55,772 | $ | 61,976 | $ | 228,320 | $ | 253,341 | |||||||||||||||||||||||||
Net interest spread (1) | 3.81 | % | 3.82 | % | 4.13 | % | 3.88 | % | 4.22 | % | |||||||||||||||||||||||||
Net interest margin (1) | 3.90 | % | 3.91 | % | 4.27 | % | 3.97 | % | 4.37 | % | |||||||||||||||||||||||||
(1) Not tax equivalent. | |||||||||||||||||||||||||||||||||||
(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset 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 | $ | 732 | $ | 388 | $ | 1,120 | $ | 1,704 | $ | (556 | ) | $ | 1,148 | $ | (2,142 | ) | $ | 289 | $ | (1,853 | ) | |||||||||||||||
Interest-bearing deposits with other banks | 1 | 1 | 2 | 0 | 0 | 0 | 42 | (126 | ) | (84 | ) | |||||||||||||||||||||||||
Gross loans (2) | (218 | ) | (588 | ) | (806 | ) | (8,789 | ) | (117 | ) | (8,906 | ) | (32,252 | ) | (1,533 | ) | (33,785 | ) | ||||||||||||||||||
Total earning assets | 515 | (199 | ) | 316 | (7,085 | ) | (673 | ) | (7,758 | ) | (34,352 | ) | (1,370 | ) | (35,722 | ) | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | $ | 333 | $ | 58 | $ | 391 | $ | (1,383 | ) | $ | (168 | ) | $ | (1,551 | ) | $ | (9,850 | ) | $ | (1,528 | ) | $ | (11,378 | ) | ||||||||||||
Borrowed funds | ||||||||||||||||||||||||||||||||||||
Short-term borrowings | 8 | (37 | ) | (29 | ) | 20 | 78 | 98 | 135 | 780 | 915 | |||||||||||||||||||||||||
Long-term debt | (4 | ) | (74 | ) | (78 | ) | (5 | ) | (128 | ) | (133 | ) | (33 | ) | (205 | ) | (238 | ) | ||||||||||||||||||
Total borrowed funds | 4 | (111 | ) | (107 | ) | 15 | (50 | ) | (35 | ) | 102 | 575 | 677 | |||||||||||||||||||||||
Total interest-bearing liabilities | 337 | (53 | ) | 284 | (1,368 | ) | (218 | ) | (1,586 | ) | (9,748 | ) | (953 | ) | (10,701 | ) | ||||||||||||||||||||
Net interest income (1) | $ | 178 | $ | (146 | ) | $ | 32 | $ | (5,717 | ) | $ | (455 | ) | $ | (6,172 | ) | $ | (24,604 | ) | $ | (417 | ) | $ | (25,021 | ) | |||||||||||
(1) Not tax equivalent. | ||||||||||||||||||||||||||||||||||||
(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans. |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CREDIT QUALITY | |||||||||||||||||||||||||||
(excluding covered assets) | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar 31, | Dec. 31, | Full Year | Full Year | |||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 45,514 | $ | 47,047 | $ | 48,306 | $ | 47,777 | $ | 49,192 | $ | 47,777 | $ | 52,576 | |||||||||||||
Provision for uncovered loan and lease losses | 1,851 | 1,413 | 2,409 | 3,041 | 3,882 | 8,714 | 19,117 | ||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||
Commercial | 293 | 1,482 | 859 | 781 | 657 | 3,415 | 4,312 | ||||||||||||||||||||
Real estate - construction | 1 | 0 | 0 | 0 | 0 | 1 | 2,684 | ||||||||||||||||||||
Real estate - commercial | 3,113 | 2,174 | 2,044 | 995 | 2,221 | 8,326 | 11,012 | ||||||||||||||||||||
Real estate - residential | 218 | 249 | 326 | 223 | 454 | 1,016 | 1,814 | ||||||||||||||||||||
Installment | 39 | 99 | 97 | 100 | 267 | 335 | 577 | ||||||||||||||||||||
Home equity | 706 | 411 | 591 | 701 | 1,722 | 2,409 | 3,661 | ||||||||||||||||||||
Other | 398 | 696 | 277 | 410 | 227 | 1,781 | 1,252 | ||||||||||||||||||||
Total gross charge-offs | 4,768 | 5,111 | 4,194 | 3,210 | 5,548 | 17,283 | 25,312 | ||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||
Commercial | 194 | 92 | 67 | 319 | 71 | 672 | 393 | ||||||||||||||||||||
Real estate - construction | 46 | 490 | 0 | 136 | 0 | 672 | 0 | ||||||||||||||||||||
Real estate - commercial | 634 | 1,264 | 57 | 39 | 46 | 1,994 | 265 | ||||||||||||||||||||
Real estate - residential | 96 | 98 | 5 | 4 | 3 | 203 | 73 | ||||||||||||||||||||
Installment | 66 | 57 | 110 | 77 | 53 | 310 | 323 | ||||||||||||||||||||
Home equity | 136 | 95 | 225 | 52 | 32 | 508 | 115 | ||||||||||||||||||||
Other | 60 | 69 | 62 | 71 | 46 | 262 | 227 | ||||||||||||||||||||
Total recoveries | 1,232 | 2,165 | 526 | 698 | 251 | 4,621 | 1,396 | ||||||||||||||||||||
Total net charge-offs | 3,536 | 2,946 | 3,668 | 2,512 | 5,297 | 12,662 | 23,916 | ||||||||||||||||||||
Ending allowance for uncovered loan and lease losses | $ | 43,829 | $ | 45,514 | $ | 47,047 | $ | 48,306 | $ | 47,777 | $ | 43,829 | $ | 47,777 | |||||||||||||
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | |||||||||||||||||||||||||||
Commercial | 0.04 | % | 0.59 | % | 0.35 | % | 0.22 | % | 0.28 | % | 0.30 | % | 0.47 | % | |||||||||||||
Real estate - construction | (0.23 | )% | (2.09 | )% | 0.00 | % | (0.68 | )% | 0.00 | % | (0.77 | )% | 2.76 | % | |||||||||||||
Real estate - commercial | 0.66 | % | 0.24 | % | 0.55 | % | 0.27 | % | 0.63 | % | 0.43 | % | 0.82 | % | |||||||||||||
Real estate - residential | 0.14 | % | 0.17 | % | 0.38 | % | 0.27 | % | 0.58 | % | 0.24 | % | 0.59 | % | |||||||||||||
Installment | (0.22 | )% | 0.33 | % | (0.10 | )% | 0.17 | % | 1.46 | % | 0.05 | % | 0.41 | % | |||||||||||||
Home equity | 0.60 | % | 0.34 | % | 0.40 | % | 0.72 | % | 1.82 | % | 0.51 | % | 0.98 | % | |||||||||||||
Other | 1.20 | % | 2.27 | % | 0.90 | % | 1.63 | % | 0.94 | % | 1.51 | % | 1.66 | % | |||||||||||||
Total net charge-offs | 0.41 | % | 0.34 | % | 0.45 | % | 0.32 | % | 0.68 | % | 0.38 | % | 0.79 | % | |||||||||||||
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | |||||||||||||||||||||||||||
Nonaccrual loans 1 | |||||||||||||||||||||||||||
Commercial | $ | 7,934 | $ | 8,554 | $ | 12,925 | $ | 16,296 | $ | 15,893 | $ | 7,934 | $ | 15,893 | |||||||||||||
Real estate - construction | 223 | 1,099 | 1,104 | 2,094 | 2,102 | 223 | 2,102 | ||||||||||||||||||||
Real estate - commercial | 17,286 | 35,549 | 35,055 | 33,871 | 34,977 | 17,286 | 34,977 | ||||||||||||||||||||
Real estate - residential | 8,606 | 9,346 | 9,369 | 8,295 | 7,869 | 8,606 | 7,869 | ||||||||||||||||||||
Installment | 574 | 421 | 249 | 341 | 452 | 574 | 452 | ||||||||||||||||||||
Home equity | 2,982 | 2,871 | 2,813 | 3,059 | 3,252 | 2,982 | 3,252 | ||||||||||||||||||||
Lease financing | 0 | 86 | 496 | 496 | 496 | 0 | 496 | ||||||||||||||||||||
Nonaccrual loans | 37,605 | 57,926 | 62,011 | 64,452 | 65,041 | 37,605 | 65,041 | ||||||||||||||||||||
Accruing troubled debt restructurings (TDRs) | 15,094 | 16,278 | 12,924 | 12,757 | 10,856 | 15,094 | 10,856 | ||||||||||||||||||||
Total nonperforming loans | 52,699 | 74,204 | 74,935 | 77,209 | 75,897 | 52,699 | 75,897 | ||||||||||||||||||||
Other real estate owned (OREO) | 19,806 | 11,804 | 11,798 | 11,993 | 12,526 | 19,806 | 12,526 | ||||||||||||||||||||
Total nonperforming assets | 72,505 | 86,008 | 86,733 | 89,202 | 88,423 | 72,505 | 88,423 | ||||||||||||||||||||
Accruing loans past due 90 days or more | 218 | 265 | 158 | 157 | 212 | 218 | 212 | ||||||||||||||||||||
Total underperforming assets | $ | 72,723 | $ | 86,273 | $ | 86,891 | $ | 89,359 | $ | 88,635 | $ | 72,723 | $ | 88,635 | |||||||||||||
Total classified assets | $ | 110,509 | $ | 120,423 | $ | 129,832 | $ | 130,436 | $ | 129,040 | $ | 110,509 | $ | 129,040 | |||||||||||||
CREDIT QUALITY RATIOS (excluding covered assets) | |||||||||||||||||||||||||||
Allowance for loan and lease losses to | |||||||||||||||||||||||||||
Nonaccrual loans | 116.55 | % | 78.57 | % | 75.87 | % | 74.95 | % | 73.46 | % | 116.55 | % | 73.46 | % | |||||||||||||
Nonperforming loans | 83.17 | % | 61.34 | % | 62.78 | % | 62.57 | % | 62.95 | % | 83.17 | % | 62.95 | % | |||||||||||||
Total ending loans | 1.25 | % | 1.33 | % | 1.39 | % | 1.49 | % | 1.50 | % | 1.25 | % | 1.50 | % | |||||||||||||
Nonperforming loans to total loans | 1.50 | % | 2.16 | % | 2.22 | % | 2.38 | % | 2.39 | % | 1.50 | % | 2.39 | % | |||||||||||||
Nonperforming assets to | |||||||||||||||||||||||||||
Ending loans, plus OREO | 2.06 | % | 2.50 | % | 2.56 | % | 2.74 | % | 2.77 | % | 2.06 | % | 2.77 | % | |||||||||||||
Total assets | 1.13 | % | 1.38 | % | 1.38 | % | 1.40 | % | 1.36 | % | 1.13 | % | 1.36 | % | |||||||||||||
Nonperforming assets, excluding accruing TDRs to | |||||||||||||||||||||||||||
Ending loans, plus OREO | 1.63 | % | 2.03 | % | 2.17 | % | 2.34 | % | 2.43 | % | 1.63 | % | 2.43 | % | |||||||||||||
Total assets | 0.89 | % | 1.12 | % | 1.18 | % | 1.20 | % | 1.19 | % | 0.89 | % | 1.19 | % | |||||||||||||
1 Nonaccrual loans include nonaccrual TDRs of $13.0 million, $13.0 million, $19.9 million, $22.3 million, and $14.1 million as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, respectively. |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CAPITAL ADEQUACY | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Twelve months ended, | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
PER COMMON SHARE | |||||||||||||||||||||||||||
Market Price | |||||||||||||||||||||||||||
High | $ | 17.59 | $ | 16.47 | $ | 16.05 | $ | 16.07 | $ | 16.95 | $ | 17.59 | $ | 18.28 | |||||||||||||
Low | $ | 14.56 | $ | 14.89 | $ | 14.52 | $ | 14.46 | $ | 13.90 | $ | 14.46 | $ | 13.90 | |||||||||||||
Close | $ | 17.43 | $ | 15.17 | $ | 14.90 | $ | 16.05 | $ | 14.62 | $ | 17.43 | $ | 14.62 | |||||||||||||
Average shares outstanding - basic | 57,152,425 | 57,201,390 | 57,291,994 | 57,439,029 | 57,800,988 | 57,270,233 | 57,876,685 | ||||||||||||||||||||
Average shares outstanding - diluted | 57,863,433 | 58,012,588 | 58,128,349 | 58,283,467 | 58,670,666 | 58,073,054 | 58,868,792 | ||||||||||||||||||||
Ending shares outstanding | 57,533,046 | 57,702,444 | 57,698,344 | 58,028,923 | 58,046,235 | 57,533,046 | 58,046,235 | ||||||||||||||||||||
REGULATORY CAPITAL | Preliminary | Preliminary | |||||||||||||||||||||||||
Tier 1 Capital | $ | 624,746 | $ | 631,846 | $ | 630,819 | $ | 632,020 | $ | 637,176 | $ | 624,746 | $ | 637,176 | |||||||||||||
Tier 1 Ratio | 14.61 | % | 15.26 | % | 15.41 | % | 15.87 | % | 16.32 | % | 14.61 | % | 16.32 | % | |||||||||||||
Total Capital | $ | 678,970 | $ | 684,363 | $ | 682,927 | $ | 682,974 | $ | 686,961 | $ | 678,970 | $ | 686,961 | |||||||||||||
Total Capital Ratio | 15.88 | % | 16.53 | % | 16.68 | % | 17.15 | % | 17.60 | % | 15.88 | % | 17.6 | % | |||||||||||||
Total Capital in excess of minimum | |||||||||||||||||||||||||||
requirement | $ | 336,878 | $ | 353,118 | $ | 355,435 | $ | 364,376 | $ | 374,633 | $ | 336,878 | $ | 374,633 | |||||||||||||
Total Risk-Weighted Assets | $ | 4,276,153 | $ | 4,140,561 | $ | 4,093,644 | $ | 3,982,479 | $ | 3,904,096 | $ | 4,276,153 | $ | 3,904,096 | |||||||||||||
Leverage Ratio | 10.11 | % | 10.29 | % | 10.12 | % | 10.00 | % | 10.25 | % | 10.11 | % | 10.25 | % | |||||||||||||
OTHER CAPITAL RATIOS | |||||||||||||||||||||||||||
Ending shareholders' equity to ending assets | 10.63 | % | 11.07 | % | 11.08 | % | 11.05 | % | 10.93 | % | 10.63 | % | 10.93 | % | |||||||||||||
Ending tangible shareholders' equity to ending tangible assets | 9.20 | % | 9.60 | % | 9.62 | % | 9.60 | % | 9.50 | % | 9.20 | % | 9.50 | % | |||||||||||||
Average shareholders' equity to average assets | 11.23 | % | 11.19 | % | 11.15 | % | 11.09 | % | 11.35 | % | 11.17 | % | 11.30 | % | |||||||||||||
Average tangible shareholders' equity to average tangible assets | 9.77 | % | 9.71 | % | 9.70 | % | 9.65 | % | 9.88 | % | 9.72 | % | 9.83 | % | |||||||||||||
REPURCHASE PROGRAM (1) | |||||||||||||||||||||||||||
Shares repurchased | 209,745 | 0 | 291,400 | 249,000 | 460,500 | 750,145 | 460,500 | ||||||||||||||||||||
Average share repurchase price | $ | 16.39 | N/A | $ | 15.47 | $ | 15.39 | $ | 14.78 | $ | 15.70 | $ | 14.78 | ||||||||||||||
Total cost of shares repurchased | $ | 3,438 | N/A | $ | 4,508 | $ | 3,831 | $ | 6,806 | $ | 11,778 | $ | 6,806 | ||||||||||||||
(1) Represents share repurchases as part of publicly announced plans. | |||||||||||||||||||||||||||
N/A=Not applicable |
Table VII | |||||||
For the Three Months Ended December 31, 2013 | |||||||
Average | |||||||
(Dollars in thousands) | Balance | Yield | |||||
Loans, excluding covered loans 1 | $ | 3,450,069 | 4.51% | ||||
Covered loan portfolio accounted for under ASC Topic 310-30 2 | 432,498 | 10.16% | |||||
Covered loan portfolio accounted for under ASC Topic 310-20 3 | 57,574 | 14.08% | |||||
FDIC indemnification asset 2 | 78,313 | (12.36)% | |||||
Total | $ | 4,018,454 | 4.93% | ||||
Yield earned on total covered loans | 10.62% | ||||||
Yield earned on total covered loans and FDIC indemnification asset | 7.45% | ||||||
1 Includes loans with loss share coverage removed | |||||||
2 Future yield adjustments subject to change based on required, periodic valuation procedures | |||||||
3 Includes loans with revolving privileges which are scoped out of ASC Topic 310-30 and certain loans which the Company elected to treat under the cost recovery method of accounting |
Table VIII | ||||||||||||||||||||||
As of | ||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Percent | Percent | Percent | ||||||||||||||||||||
(Dollars in thousands) | Balance | of Total | Balance | of Total | Balance | of Total | ||||||||||||||||
Commercial | $ | 42,316 | 9.2 | % | $ | 52,276 | 10.1 | % | $ | 102,126 | 13.7 | % | ||||||||||
Real estate - construction | 8,556 | 1.9 | % | 8,692 | 1.7 | % | 10,631 | 1.4 | % | |||||||||||||
Real estate - commercial | 268,633 | 58.7 | % | 312,798 | 60.3 | % | 465,555 | 62.2 | % | |||||||||||||
Real estate - residential | 80,733 | 17.6 | % | 84,418 | 16.3 | % | 100,694 | 13.5 | % | |||||||||||||
Installment | 5,641 | 1.2 | % | 6,135 | 1.2 | % | 8,674 | 1.2 | % | |||||||||||||
Home equity | 49,624 | 10.8 | % | 51,692 | 10.0 | % | 57,458 | 7.7 | % | |||||||||||||
Other | 2,370 | 0.5 | % | 2,513 | 0.5 | % | 2,978 | 0.4 | % | |||||||||||||
Total | $ | 457,873 | 100.0 | % | $ | 518,524 | 100.0 | % | $ | 748,116 | 100.0 | % | ||||||||||
Table IX | |||||||||||||||||
As of or for the Three Months Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
(Dollars in thousands) | 2013 | 2013 | 2013 | 2013 | |||||||||||||
Balance at beginning of period | $ | 23,259 | $ | 32,961 | $ | 45,496 | $ | 45,190 | |||||||||
Provision for loan and lease losses - covered | (5,857 | ) | 5,293 | (8,283 | ) | 9,042 | |||||||||||
Total gross charge-offs | (3,850 | ) | (21,009 | ) | (4,681 | ) | (9,684 | ) | |||||||||
Total recoveries | 5,349 | 6,014 | 429 | 948 | |||||||||||||
Total net charge-offs | 1,499 | (14,995 | ) | (4,252 | ) | (8,736 | ) | ||||||||||
Ending allowance for loan and lease losses - covered | $ | 18,901 | $ | 23,259 | $ | 32,961 | $ | 45,496 | |||||||||
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