Ohio | 31-1042001 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
By: /s/ John M. Gavigan | ||
John M. Gavigan | ||
Senior Vice President and Chief Financial Officer | ||
Date: | October 20, 2016 |
• | Loans increased $88.3 million, or 6.2% on an annualized basis, from the linked quarter |
• | Stable net interest margin of 3.61%; 3.66% on a fully tax equivalent basis |
• | Provision expense declined $2.4 million consistent with stable credit quality |
• | Noninterest income included $0.4 million of gains on sales of investment securities |
• | Noninterest expense included $0.8 million of severance costs, $0.2 million of gains related to branch consolidation activities and a $0.2 million legal recovery |
• | Efficiency ratio of 59.6% |
• | Effective tax rate of 30.7% included seasonal adjustments |
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 |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Three Months Ended, | Nine months ended, | ||||||||||||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | ||||||||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
RESULTS OF OPERATIONS | |||||||||||||||||||||||||||
Net income | $ | 22,850 | $ | 22,568 | $ | 19,814 | $ | 19,820 | $ | 18,673 | $ | 65,232 | $ | 55,243 | |||||||||||||
Net earnings per share - basic | $ | 0.37 | $ | 0.37 | $ | 0.32 | $ | 0.33 | $ | 0.31 | $ | 1.07 | $ | 0.90 | |||||||||||||
Net earnings per share - diluted | $ | 0.37 | $ | 0.36 | $ | 0.32 | $ | 0.32 | $ | 0.30 | $ | 1.05 | $ | 0.89 | |||||||||||||
Dividends declared per share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.48 | $ | 0.48 | |||||||||||||
KEY FINANCIAL RATIOS | |||||||||||||||||||||||||||
Return on average assets | 1.09 | % | 1.11 | % | 0.98 | % | 0.99 | % | 0.97 | % | 1.06 | % | 1.00 | % | |||||||||||||
Return on average shareholders' equity | 10.62 | % | 10.84 | % | 9.70 | % | 9.62 | % | 9.12 | % | 10.39 | % | 9.23 | % | |||||||||||||
Return on average tangible shareholders' equity | 14.08 | % | 14.49 | % | 13.06 | % | 12.98 | % | 12.33 | % | 13.88 | % | 12.54 | % | |||||||||||||
Net interest margin | 3.61 | % | 3.61 | % | 3.62 | % | 3.63 | % | 3.61 | % | 3.61 | % | 3.59 | % | |||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.66 | % | 3.67 | % | 3.68 | % | 3.69 | % | 3.67 | % | 3.67 | % | 3.65 | % | |||||||||||||
Ending shareholders' equity as a percent of ending assets | 10.29 | % | 10.19 | % | 10.09 | % | 9.93 | % | 10.32 | % | 10.29 | % | 10.32 | % | |||||||||||||
Ending tangible shareholders' equity as a percent of: | |||||||||||||||||||||||||||
Ending tangible assets | 7.97 | % | 7.85 | % | 7.71 | % | 7.53 | % | 7.84 | % | 7.97 | % | 7.84 | % | |||||||||||||
Risk-weighted assets | 9.63 | % | 9.51 | % | 9.49 | % | 9.47 | % | 9.90 | % | 9.63 | % | 9.90 | % | |||||||||||||
Average shareholders' equity as a percent of average assets | 10.29 | % | 10.21 | % | 10.12 | % | 10.29 | % | 10.67 | % | 10.21 | % | 10.89 | % | |||||||||||||
Average tangible shareholders' equity as a percent of | |||||||||||||||||||||||||||
average tangible assets | 7.96 | % | 7.83 | % | 7.71 | % | 7.83 | % | 8.12 | % | 7.84 | % | 8.25 | % | |||||||||||||
Book value per share | $ | 13.90 | $ | 13.67 | $ | 13.36 | $ | 13.13 | $ | 13.17 | $ | 13.90 | $ | 13.17 | |||||||||||||
Tangible book value per share | $ | 10.50 | $ | 10.26 | $ | 9.94 | $ | 9.69 | $ | 9.74 | $ | 10.50 | $ | 9.74 | |||||||||||||
Common equity tier 1 ratio (2) | 10.20 | % | 10.07 | % | 10.16 | % | 10.28 | % | 10.51 | % | 10.20 | % | 10.51 | % | |||||||||||||
Tier 1 ratio (2) | 10.20 | % | 10.07 | % | 10.16 | % | 10.29 | % | 10.52 | % | 10.20 | % | 10.52 | % | |||||||||||||
Total capital ratio (2) | 12.82 | % | 12.70 | % | 12.84 | % | 13.04 | % | 13.37 | % | 12.82 | % | 13.37 | % | |||||||||||||
Leverage ratio (2) | 8.45 | % | 8.38 | % | 8.27 | % | 8.33 | % | 8.58 | % | 8.45 | % | 8.58 | % | |||||||||||||
AVERAGE BALANCE SHEET ITEMS | |||||||||||||||||||||||||||
Loans (3) | $ | 5,743,773 | $ | 5,569,080 | $ | 5,417,812 | $ | 5,248,465 | $ | 5,032,708 | $ | 5,577,497 | $ | 4,866,577 | |||||||||||||
FDIC indemnification asset | 14,031 | 15,404 | 17,138 | 18,437 | 19,848 | 15,519 | 20,893 | ||||||||||||||||||||
Investment securities | 1,811,240 | 1,869,540 | 1,938,772 | 1,934,173 | 1,848,083 | 1,872,958 | 1,798,143 | ||||||||||||||||||||
Interest-bearing deposits with other banks | 22,116 | 21,687 | 24,291 | 18,920 | 37,468 | 22,696 | 26,287 | ||||||||||||||||||||
Total earning assets | $ | 7,591,160 | $ | 7,475,711 | $ | 7,398,013 | $ | 7,219,995 | $ | 6,938,107 | $ | 7,488,670 | $ | 6,711,900 | |||||||||||||
Total assets | $ | 8,322,156 | $ | 8,203,837 | $ | 8,118,945 | $ | 7,950,278 | $ | 7,611,389 | $ | 8,215,370 | $ | 7,353,698 | |||||||||||||
Noninterest-bearing deposits | $ | 1,453,842 | $ | 1,441,068 | $ | 1,386,768 | $ | 1,402,283 | $ | 1,344,049 | $ | 1,427,323 | $ | 1,318,746 | |||||||||||||
Interest-bearing deposits | 4,746,887 | 4,867,439 | 4,749,253 | 4,845,056 | 4,615,886 | 4,787,710 | 4,475,485 | ||||||||||||||||||||
Total deposits | $ | 6,200,729 | $ | 6,308,507 | $ | 6,136,021 | $ | 6,247,339 | $ | 5,959,935 | $ | 6,215,033 | $ | 5,794,231 | |||||||||||||
Borrowings | $ | 1,153,042 | $ | 965,951 | $ | 1,065,739 | $ | 763,408 | $ | 746,706 | $ | 1,061,911 | $ | 675,185 | |||||||||||||
Shareholders' equity | $ | 856,296 | $ | 837,412 | $ | 821,588 | $ | 817,756 | $ | 812,396 | $ | 838,497 | $ | 800,589 | |||||||||||||
CREDIT QUALITY RATIOS | |||||||||||||||||||||||||||
Allowance to ending loans | 1.00 | % | 0.99 | % | 0.98 | % | 0.99 | % | 1.02 | % | 1.00 | % | 1.02 | % | |||||||||||||
Allowance to nonaccrual loans | 314.84 | % | 254.56 | % | 244.16 | % | 190.73 | % | 149.33 | % | 314.84 | % | 149.33 | % | |||||||||||||
Allowance to nonperforming loans | 114.17 | % | 112.74 | % | 103.07 | % | 93.89 | % | 95.34 | % | 114.17 | % | 95.34 | % | |||||||||||||
Nonperforming loans to total loans | 0.87 | % | 0.88 | % | 0.95 | % | 1.06 | % | 1.07 | % | 0.87 | % | 1.07 | % | |||||||||||||
Nonperforming assets to ending loans, plus OREO | 1.00 | % | 1.04 | % | 1.16 | % | 1.30 | % | 1.36 | % | 1.00 | % | 1.36 | % | |||||||||||||
Nonperforming assets to total assets | 0.69 | % | 0.72 | % | 0.78 | % | 0.86 | % | 0.90 | % | 0.69 | % | 0.90 | % | |||||||||||||
Net charge-offs to average loans (annualized) | 0.05 | % | 0.08 | % | 0.10 | % | 0.14 | % | 0.17 | % | 0.08 | % | 0.20 | % |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended, | Nine months ended, | ||||||||||||||||||||
Sep. 30, | Sep. 30, | ||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Interest income | |||||||||||||||||||||
Loans, including fees | $ | 66,997 | $ | 58,694 | 14.1 | % | $ | 194,820 | $ | 167,744 | 16.1 | % | |||||||||
Investment securities | |||||||||||||||||||||
Taxable | 10,326 | 9,986 | 3.4 | % | 32,405 | 28,875 | 12.2 | % | |||||||||||||
Tax-exempt | 1,083 | 1,163 | (6.9 | )% | 3,401 | 3,419 | (0.5 | )% | |||||||||||||
Total investment securities interest | 11,409 | 11,149 | 2.3 | % | 35,806 | 32,294 | 10.9 | % | |||||||||||||
Other earning assets | (1,081 | ) | (1,168 | ) | 7.4 | % | (3,323 | ) | (3,511 | ) | (5.4 | )% | |||||||||
Total interest income | 77,325 | 68,675 | 12.6 | % | 227,303 | 196,527 | 15.7 | % | |||||||||||||
Interest expense | |||||||||||||||||||||
Deposits | 5,600 | 4,861 | 15.2 | % | 16,587 | 14,302 | 16.0 | % | |||||||||||||
Short-term borrowings | 1,368 | 374 | 265.8 | % | 3,591 | 930 | 286.1 | % | |||||||||||||
Long-term borrowings | 1,539 | 281 | 447.7 | % | 4,620 | 876 | 427.4 | % | |||||||||||||
Total interest expense | 8,507 | 5,516 | 54.2 | % | 24,798 | 16,108 | 53.9 | % | |||||||||||||
Net interest income | 68,818 | 63,159 | 9.0 | % | 202,505 | 180,419 | 12.2 | % | |||||||||||||
Provision for loan and lease losses | 1,687 | 2,647 | (36.3 | )% | 7,379 | 7,777 | (5.1 | )% | |||||||||||||
Net interest income after provision for loan and lease losses | 67,131 | 60,512 | 10.9 | % | 195,126 | 172,642 | 13.0 | % | |||||||||||||
Noninterest income | |||||||||||||||||||||
Service charges on deposit accounts | 5,056 | 4,934 | 2.5 | % | 13,892 | 14,260 | (2.6 | )% | |||||||||||||
Trust and wealth management fees | 3,236 | 3,134 | 3.3 | % | 9,959 | 10,042 | (0.8 | )% | |||||||||||||
Bankcard income | 2,984 | 2,909 | 2.6 | % | 8,996 | 8,501 | 5.8 | % | |||||||||||||
Client derivative fees | 1,210 | 1,604 | (24.6 | )% | 4,104 | 3,444 | 19.2 | % | |||||||||||||
Net gains from sales of loans | 2,066 | 1,758 | 17.5 | % | 5,093 | 5,146 | (1.0 | )% | |||||||||||||
Net gains on sale of investment securities | 398 | 409 | (2.7 | )% | 234 | 1,503 | (84.4 | )% | |||||||||||||
FDIC loss sharing income | (638 | ) | (973 | ) | (34.4 | )% | (1,144 | ) | (2,323 | ) | (50.8 | )% | |||||||||
Accelerated discount on covered / formerly covered loans | 491 | 3,820 | (87.1 | )% | 2,653 | 10,006 | (73.5 | )% | |||||||||||||
Other | 2,146 | 2,760 | (22.2 | )% | 8,868 | 8,804 | 0.7 | % | |||||||||||||
Total noninterest income | 16,949 | 20,355 | (16.7 | )% | 52,655 | 59,383 | (11.3 | )% | |||||||||||||
Noninterest expenses | |||||||||||||||||||||
Salaries and employee benefits | 32,093 | 27,768 | 15.6 | % | 91,234 | 82,160 | 11.0 | % | |||||||||||||
Net occupancy | 4,543 | 4,510 | 0.7 | % | 13,991 | 13,895 | 0.7 | % | |||||||||||||
Furniture and equipment | 2,139 | 2,165 | (1.2 | )% | 6,482 | 6,537 | (0.8 | )% | |||||||||||||
Data processing | 2,828 | 2,591 | 9.1 | % | 8,311 | 8,020 | 3.6 | % | |||||||||||||
Marketing | 641 | 810 | (20.9 | )% | 2,507 | 2,671 | (6.1 | )% | |||||||||||||
Communication | 527 | 531 | (0.8 | )% | 1,485 | 1,659 | (10.5 | )% | |||||||||||||
Professional services | 1,460 | 4,092 | (64.3 | )% | 4,572 | 7,789 | (41.3 | )% | |||||||||||||
State intangible tax | 639 | 579 | 10.4 | % | 1,917 | 1,733 | 10.6 | % | |||||||||||||
FDIC assessments | 1,048 | 1,103 | (5.0 | )% | 3,292 | 3,307 | (0.5 | )% | |||||||||||||
Loss (gain) - other real estate owned | (112 | ) | 196 | (157.1 | )% | (259 | ) | 1,089 | (123.8 | )% | |||||||||||
Loss sharing expense | 270 | 574 | (53.0 | )% | 555 | 1,451 | (61.8 | )% | |||||||||||||
Other | 5,029 | 8,073 | (37.7 | )% | 17,151 | 19,535 | (12.2 | )% | |||||||||||||
Total noninterest expenses | 51,105 | 52,992 | (3.6 | )% | 151,238 | 149,846 | 0.9 | % | |||||||||||||
Income before income taxes | 32,975 | 27,875 | 18.3 | % | 96,543 | 82,179 | 17.5 | % | |||||||||||||
Income tax expense | 10,125 | 9,202 | 10.0 | % | 31,311 | 26,936 | 16.2 | % | |||||||||||||
Net income | $ | 22,850 | $ | 18,673 | 22.4 | % | $ | 65,232 | $ | 55,243 | 18.1 | % | |||||||||
ADDITIONAL DATA | |||||||||||||||||||||
Net earnings per share - basic | $ | 0.37 | $ | 0.31 | $ | 1.07 | $ | 0.90 | |||||||||||||
Net earnings per share - diluted | $ | 0.37 | $ | 0.30 | $ | 1.05 | $ | 0.89 | |||||||||||||
Dividends declared per share | $ | 0.16 | $ | 0.16 | $ | 0.48 | $ | 0.48 | |||||||||||||
Return on average assets | 1.09 | % | 0.97 | % | 1.06 | % | 1.00 | % | |||||||||||||
Return on average shareholders' equity | 10.62 | % | 9.12 | % | 10.39 | % | 9.23 | % | |||||||||||||
Interest income | $ | 77,325 | $ | 68,675 | 12.6 | % | $ | 227,303 | $ | 196,527 | 15.7 | % | |||||||||
Tax equivalent adjustment | 1,028 | 1,000 | 2.8 | % | 3,138 | 2,971 | 5.6 | % | |||||||||||||
Interest income - tax equivalent | 78,353 | 69,675 | 12.5 | % | 230,441 | 199,498 | 15.5 | % | |||||||||||||
Interest expense | 8,507 | 5,516 | 54.2 | % | 24,798 | 16,108 | 53.9 | % | |||||||||||||
Net interest income - tax equivalent | $ | 69,846 | $ | 64,159 | 8.9 | % | $ | 205,643 | $ | 183,390 | 12.1 | % | |||||||||
Net interest margin | 3.61 | % | 3.61 | % | 3.61 | % | 3.59 | % | |||||||||||||
Net interest margin (fully tax equivalent) (1) | 3.66 | % | 3.67 | % | 3.67 | % | 3.65 | % | |||||||||||||
Full-time equivalent employees | 1,402 | 1,394 | |||||||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. | |||||||||||||||||||||
N/M = Not meaningful. |
FIRST FINANCIAL BANCORP. | ||||||||||||||||||
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | ||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
2016 | ||||||||||||||||||
Third | Second | First | Full | % Change | ||||||||||||||
Quarter | Quarter | Quarter | Year | Linked Qtr. | ||||||||||||||
Interest income | ||||||||||||||||||
Loans, including fees | $ | 66,997 | $ | 64,424 | $ | 63,399 | $ | 194,820 | 4.0 | % | ||||||||
Investment securities | ||||||||||||||||||
Taxable | 10,326 | 10,706 | 11,373 | 32,405 | (3.5 | )% | ||||||||||||
Tax-exempt | 1,083 | 1,156 | 1,162 | 3,401 | (6.3 | )% | ||||||||||||
Total investment securities interest | 11,409 | 11,862 | 12,535 | 35,806 | (3.8 | )% | ||||||||||||
Other earning assets | (1,081 | ) | (1,103 | ) | (1,139 | ) | (3,323 | ) | 2.0 | % | ||||||||
Total interest income | 77,325 | 75,183 | 74,795 | 227,303 | 2.8 | % | ||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 5,600 | 5,457 | 5,530 | 16,587 | 2.6 | % | ||||||||||||
Short-term borrowings | 1,368 | 1,053 | 1,170 | 3,591 | 29.9 | % | ||||||||||||
Long-term borrowings | 1,539 | 1,541 | 1,540 | 4,620 | (0.1 | )% | ||||||||||||
Total interest expense | 8,507 | 8,051 | 8,240 | 24,798 | 5.7 | % | ||||||||||||
Net interest income | 68,818 | 67,132 | 66,555 | 202,505 | 2.5 | % | ||||||||||||
Provision for loan and lease losses | 1,687 | 4,037 | 1,655 | 7,379 | (58.2 | )% | ||||||||||||
Net interest income after provision for loan and lease losses | 67,131 | 63,095 | 64,900 | 195,126 | 6.4 | % | ||||||||||||
Noninterest income | ||||||||||||||||||
Service charges on deposit accounts | 5,056 | 4,455 | 4,381 | 13,892 | 13.5 | % | ||||||||||||
Trust and wealth management fees | 3,236 | 3,283 | 3,440 | 9,959 | (1.4 | )% | ||||||||||||
Bankcard income | 2,984 | 3,130 | 2,882 | 8,996 | (4.7 | )% | ||||||||||||
Client derivative fees | 1,210 | 1,799 | 1,095 | 4,104 | (32.7 | )% | ||||||||||||
Net gains from sales of loans | 2,066 | 1,846 | 1,181 | 5,093 | 11.9 | % | ||||||||||||
Net gains on sale of investment securities | 398 | (188 | ) | 24 | 234 | (311.7 | )% | |||||||||||
FDIC loss sharing income | (638 | ) | 59 | (565 | ) | (1,144 | ) | N/M | ||||||||||
Accelerated discount on covered / formerly covered loans | 491 | 1,191 | 971 | 2,653 | (58.8 | )% | ||||||||||||
Other | 2,146 | 4,619 | 2,103 | 8,868 | (53.5 | )% | ||||||||||||
Total noninterest income | 16,949 | 20,194 | 15,512 | 52,655 | (16.1 | )% | ||||||||||||
Noninterest expenses | ||||||||||||||||||
Salaries and employee benefits | 32,093 | 29,526 | 29,615 | 91,234 | 8.7 | % | ||||||||||||
Net occupancy | 4,543 | 4,491 | 4,957 | 13,991 | 1.2 | % | ||||||||||||
Furniture and equipment | 2,139 | 2,130 | 2,213 | 6,482 | 0.4 | % | ||||||||||||
Data processing | 2,828 | 2,765 | 2,718 | 8,311 | 2.3 | % | ||||||||||||
Marketing | 641 | 801 | 1,065 | 2,507 | (20.0 | )% | ||||||||||||
Communication | 527 | 477 | 481 | 1,485 | 10.5 | % | ||||||||||||
Professional services | 1,460 | 1,299 | 1,813 | 4,572 | 12.4 | % | ||||||||||||
State intangible tax | 639 | 639 | 639 | 1,917 | 0.0 | % | ||||||||||||
FDIC assessments | 1,048 | 1,112 | 1,132 | 3,292 | (5.8 | )% | ||||||||||||
Loss (gain) - other real estate owned | (112 | ) | 43 | (190 | ) | (259 | ) | (360.5 | )% | |||||||||
Loss sharing expense | 270 | (12 | ) | 297 | 555 | N/M | ||||||||||||
Other | 5,029 | 6,142 | 5,980 | 17,151 | (18.1 | )% | ||||||||||||
Total noninterest expenses | 51,105 | 49,413 | 50,720 | 151,238 | 3.4 | % | ||||||||||||
Income before income taxes | 32,975 | 33,876 | 29,692 | 96,543 | (2.7 | )% | ||||||||||||
Income tax expense | 10,125 | 11,308 | 9,878 | 31,311 | (10.5 | )% | ||||||||||||
Net income | $ | 22,850 | $ | 22,568 | $ | 19,814 | $ | 65,232 | 1.2 | % | ||||||||
ADDITIONAL DATA | ||||||||||||||||||
Net earnings per share - basic | $ | 0.37 | $ | 0.37 | $ | 0.32 | $ | 1.07 | ||||||||||
Net earnings per share - diluted | $ | 0.37 | $ | 0.36 | $ | 0.32 | $ | 1.05 | ||||||||||
Dividends declared per share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.48 | ||||||||||
Return on average assets | 1.09 | % | 1.11 | % | 0.98 | % | 1.06 | % | ||||||||||
Return on average shareholders' equity | 10.62 | % | 10.84 | % | 9.70 | % | 10.39 | % | ||||||||||
Interest income | $ | 77,325 | $ | 75,183 | $ | 74,795 | $ | 227,303 | 2.8 | % | ||||||||
Tax equivalent adjustment | 1,028 | 1,058 | 1,052 | 3,138 | (2.8 | )% | ||||||||||||
Interest income - tax equivalent | 78,353 | 76,241 | 75,847 | 230,441 | 2.8 | % | ||||||||||||
Interest expense | 8,507 | 8,051 | 8,240 | 24,798 | 5.7 | % | ||||||||||||
Net interest income - tax equivalent | $ | 69,846 | $ | 68,190 | $ | 67,607 | $ | 205,643 | 2.4 | % | ||||||||
Net interest margin | 3.61 | % | 3.61 | % | 3.62 | % | 3.61 | % | ||||||||||
Net interest margin (fully tax equivalent) (1) | 3.66 | % | 3.67 | % | 3.68 | % | 3.67 | % | ||||||||||
Full-time equivalent employees | 1,402 | 1,403 | 1,390 | |||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. | ||||||||||||||||||
N/M = Not meaningful. |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | |||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
2015 | |||||||||||||||||||
Fourth | Third | Second | First | Full | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||||
Interest income | |||||||||||||||||||
Loans, including fees | $ | 62,502 | $ | 58,694 | $ | 54,586 | $ | 54,464 | $ | 230,246 | |||||||||
Investment securities | |||||||||||||||||||
Taxable | 10,702 | 9,986 | 9,281 | 9,608 | 39,577 | ||||||||||||||
Tax-exempt | 1,192 | 1,163 | 1,139 | 1,117 | 4,611 | ||||||||||||||
Total investment securities interest | 11,894 | 11,149 | 10,420 | 10,725 | 44,188 | ||||||||||||||
Other earning assets | (1,164 | ) | (1,168 | ) | (1,162 | ) | (1,181 | ) | (4,675 | ) | |||||||||
Total interest income | 73,232 | 68,675 | 63,844 | 64,008 | 269,759 | ||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 5,172 | 4,861 | 4,621 | 4,820 | 19,474 | ||||||||||||||
Short-term borrowings | 434 | 374 | 253 | 303 | 1,364 | ||||||||||||||
Long-term borrowings | 1,543 | 281 | 296 | 299 | 2,419 | ||||||||||||||
Total interest expense | 7,149 | 5,516 | 5,170 | 5,422 | 23,257 | ||||||||||||||
Net interest income | 66,083 | 63,159 | 58,674 | 58,586 | 246,502 | ||||||||||||||
Provision for loan and lease losses | 1,864 | 2,647 | 3,070 | 2,060 | 9,641 | ||||||||||||||
Net interest income after provision for loan and lease losses | 64,219 | 60,512 | 55,604 | 56,526 | 236,861 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Service charges on deposit accounts | 4,755 | 4,934 | 4,803 | 4,523 | 19,015 | ||||||||||||||
Trust and wealth management fees | 3,086 | 3,134 | 3,274 | 3,634 | 13,128 | ||||||||||||||
Bankcard income | 3,077 | 2,909 | 2,972 | 2,620 | 11,578 | ||||||||||||||
Client derivative fees | 945 | 1,604 | 878 | 962 | 4,389 | ||||||||||||||
Net gains from sales of loans | 1,325 | 1,758 | 1,924 | 1,464 | 6,471 | ||||||||||||||
Net gains on sale of investment securities | 2 | 409 | 1,094 | 0 | 1,505 | ||||||||||||||
FDIC loss sharing income | (164 | ) | (973 | ) | (304 | ) | (1,046 | ) | (2,487 | ) | |||||||||
Accelerated discount on covered / formerly covered loans | 785 | 3,820 | 4,094 | 2,092 | 10,791 | ||||||||||||||
Other | 2,008 | 2,760 | 2,680 | 3,364 | 10,812 | ||||||||||||||
Total noninterest income | 15,819 | 20,355 | 21,415 | 17,613 | 75,202 | ||||||||||||||
Noninterest expenses | |||||||||||||||||||
Salaries and employee benefits | 29,632 | 27,768 | 27,451 | 26,941 | 111,792 | ||||||||||||||
Net occupancy | 4,337 | 4,510 | 4,380 | 5,005 | 18,232 | ||||||||||||||
Furniture and equipment | 2,185 | 2,165 | 2,219 | 2,153 | 8,722 | ||||||||||||||
Data processing | 2,843 | 2,591 | 2,657 | 2,772 | 10,863 | ||||||||||||||
Marketing | 1,052 | 810 | 973 | 888 | 3,723 | ||||||||||||||
Communication | 502 | 531 | 558 | 570 | 2,161 | ||||||||||||||
Professional services | 1,833 | 4,092 | 1,727 | 1,970 | 9,622 | ||||||||||||||
State intangible tax | 598 | 579 | 577 | 577 | 2,331 | ||||||||||||||
FDIC assessments | 1,139 | 1,103 | 1,114 | 1,090 | 4,446 | ||||||||||||||
Loss (gain) - other real estate owned | 772 | 196 | 419 | 474 | 1,861 | ||||||||||||||
Loss sharing expense | 414 | 574 | 576 | 301 | 1,865 | ||||||||||||||
Other | 5,977 | 8,073 | 6,135 | 5,327 | 25,512 | ||||||||||||||
Total noninterest expenses | 51,284 | 52,992 | 48,786 | 48,068 | 201,130 | ||||||||||||||
Income before income taxes | 28,754 | 27,875 | 28,233 | 26,071 | 110,933 | ||||||||||||||
Income tax expense | 8,934 | 9,202 | 9,284 | 8,450 | 35,870 | ||||||||||||||
Net income | $ | 19,820 | $ | 18,673 | $ | 18,949 | $ | 17,621 | $ | 75,063 | |||||||||
ADDITIONAL DATA | |||||||||||||||||||
Net earnings per share - basic | $ | 0.33 | $ | 0.31 | $ | 0.31 | $ | 0.29 | $ | 1.23 | |||||||||
Net earnings per share - diluted | $ | 0.32 | $ | 0.30 | $ | 0.31 | $ | 0.29 | $ | 1.21 | |||||||||
Dividends declared per share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.64 | |||||||||
Return on average assets | 0.99 | % | 0.97 | % | 1.05 | % | 0.99 | % | 1.00 | % | |||||||||
Return on average shareholders' equity | 9.62 | % | 9.12 | % | 9.49 | % | 9.06 | % | 9.33 | % | |||||||||
Interest income | $ | 73,232 | $ | 68,675 | $ | 63,844 | $ | 64,008 | $ | 269,759 | |||||||||
Tax equivalent adjustment | 1,046 | 1,000 | 988 | 983 | 4,017 | ||||||||||||||
Interest income - tax equivalent | 74,278 | 69,675 | 64,832 | 64,991 | 273,776 | ||||||||||||||
Interest expense | 7,149 | 5,516 | 5,170 | 5,422 | 23,257 | ||||||||||||||
Net interest income - tax equivalent | $ | 67,129 | $ | 64,159 | $ | 59,662 | $ | 59,569 | $ | 250,519 | |||||||||
Net interest margin | 3.63 | % | 3.61 | % | 3.56 | % | 3.61 | % | 3.60 | % | |||||||||
Net interest margin (fully tax equivalent) (1) | 3.69 | % | 3.67 | % | 3.62 | % | 3.67 | % | 3.66 | % | |||||||||
Full-time equivalent employees | 1,400 | 1,394 | 1,366 | 1,353 | |||||||||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | % Change | % Change | |||||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | Linked Qtr. | Comparable Qtr. | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Cash and due from banks | $ | 117,982 | $ | 106,174 | $ | 102,675 | $ | 114,841 | $ | 112,298 | 11.1 | % | 5.1 | % | |||||||||||
Interest-bearing deposits with other banks | 16,765 | 18,911 | 15,582 | 33,734 | 24,191 | (11.3 | )% | (30.7 | )% | ||||||||||||||||
Investment securities available-for-sale | 1,120,494 | 1,114,349 | 1,164,319 | 1,190,642 | 1,069,667 | 0.6 | % | 4.8 | % | ||||||||||||||||
Investment securities held-to-maturity | 628,497 | 670,111 | 702,315 | 726,259 | 756,035 | (6.2 | )% | (16.9 | )% | ||||||||||||||||
Other investments | 51,170 | 51,261 | 53,255 | 53,725 | 53,431 | (0.2 | )% | (4.2 | )% | ||||||||||||||||
Loans held for sale | 17,414 | 10,494 | 15,369 | 20,957 | 26,287 | 65.9 | % | (33.8 | )% | ||||||||||||||||
Loans and leases | |||||||||||||||||||||||||
Commercial and industrial | 1,782,782 | 1,794,533 | 1,744,732 | 1,663,102 | 1,637,467 | (0.7 | )% | 8.9 | % | ||||||||||||||||
Lease financing | 96,046 | 100,263 | 101,135 | 93,986 | 82,679 | (4.2 | )% | 16.2 | % | ||||||||||||||||
Construction - real estate | 380,349 | 374,949 | 341,453 | 311,712 | 276,240 | 1.4 | % | 37.7 | % | ||||||||||||||||
Commercial - real estate | 2,468,083 | 2,363,456 | 2,261,857 | 2,258,297 | 2,169,662 | 4.4 | % | 13.8 | % | ||||||||||||||||
Residential - real estate | 507,715 | 512,800 | 508,512 | 512,311 | 506,653 | (1.0 | )% | 0.2 | % | ||||||||||||||||
Home equity | 463,702 | 467,549 | 466,010 | 466,629 | 463,629 | (0.8 | )% | 0.0 | % | ||||||||||||||||
Installment | 47,825 | 46,917 | 41,627 | 41,506 | 39,974 | 1.9 | % | 19.6 | % | ||||||||||||||||
Credit card | 43,009 | 40,746 | 39,283 | 41,217 | 39,759 | 5.6 | % | 8.2 | % | ||||||||||||||||
Total loans | 5,789,511 | 5,701,213 | 5,504,609 | 5,388,760 | 5,216,063 | 1.5 | % | 11.0 | % | ||||||||||||||||
Less | |||||||||||||||||||||||||
Allowance for loan and lease losses | 57,618 | 56,708 | 53,732 | 53,398 | 53,332 | 1.6 | % | 8.0 | % | ||||||||||||||||
Net loans | 5,731,893 | 5,644,505 | 5,450,877 | 5,335,362 | 5,162,731 | 1.5 | % | 11.0 | % | ||||||||||||||||
Premises and equipment | 132,082 | 133,969 | 138,036 | 136,603 | 139,020 | (1.4 | )% | (5.0 | )% | ||||||||||||||||
Goodwill and other intangibles | 210,888 | 211,199 | 211,533 | 211,865 | 211,732 | (0.1 | )% | (0.4 | )% | ||||||||||||||||
FDIC indemnification asset | 13,287 | 14,504 | 16,256 | 17,630 | 18,931 | (8.4 | )% | (29.8 | )% | ||||||||||||||||
Accrued interest and other assets | 328,009 | 334,625 | 323,337 | 305,793 | 306,210 | (2.0 | )% | 7.1 | % | ||||||||||||||||
Total Assets | $ | 8,368,481 | $ | 8,310,102 | $ | 8,193,554 | $ | 8,147,411 | $ | 7,880,533 | 0.7 | % | 6.2 | % | |||||||||||
LIABILITIES | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Interest-bearing demand | $ | 1,494,529 | $ | 1,436,078 | $ | 1,430,963 | $ | 1,414,291 | $ | 1,330,673 | 4.1 | % | 12.3 | % | |||||||||||
Savings | 2,005,407 | 1,974,449 | 1,922,892 | 1,945,805 | 1,979,627 | 1.6 | % | 1.3 | % | ||||||||||||||||
Time | 1,346,736 | 1,279,934 | 1,414,313 | 1,406,124 | 1,440,223 | 5.2 | % | (6.5 | )% | ||||||||||||||||
Total interest-bearing deposits | 4,846,672 | 4,690,461 | 4,768,168 | 4,766,220 | 4,750,523 | 3.3 | % | 2.0 | % | ||||||||||||||||
Noninterest-bearing | 1,492,011 | 1,429,163 | 1,408,609 | 1,413,404 | 1,330,905 | 4.4 | % | 12.1 | % | ||||||||||||||||
Total deposits | 6,338,683 | 6,119,624 | 6,176,777 | 6,179,624 | 6,081,428 | 3.6 | % | 4.2 | % | ||||||||||||||||
Federal funds purchased and securities sold | |||||||||||||||||||||||||
under agreements to repurchase | 77,936 | 80,084 | 75,499 | 89,325 | 62,317 | (2.7 | )% | 25.1 | % | ||||||||||||||||
FHLB short-term borrowings | 848,300 | 1,035,000 | 894,400 | 849,100 | 701,200 | (18.0 | )% | 21.0 | % | ||||||||||||||||
Total short-term borrowings | 926,236 | 1,115,084 | 969,899 | 938,425 | 763,517 | (16.9 | )% | 21.3 | % | ||||||||||||||||
Long-term debt | 119,549 | 119,596 | 119,556 | 119,540 | 119,515 | 0.0 | % | 0.0 | % | ||||||||||||||||
Total borrowed funds | 1,045,785 | 1,234,680 | 1,089,455 | 1,057,965 | 883,032 | (15.3 | )% | 18.4 | % | ||||||||||||||||
Accrued interest and other liabilities | 122,876 | 109,075 | 100,735 | 100,446 | 103,061 | 12.7 | % | 19.2 | % | ||||||||||||||||
Total Liabilities | 7,507,344 | 7,463,379 | 7,366,967 | 7,338,035 | 7,067,521 | 0.6 | % | 6.2 | % | ||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
Common stock | 569,199 | 567,687 | 567,497 | 571,155 | 570,025 | 0.3 | % | (0.1 | )% | ||||||||||||||||
Retained earnings | 423,800 | 410,893 | 398,224 | 388,240 | 378,258 | 3.1 | % | 12.0 | % | ||||||||||||||||
Accumulated other comprehensive loss | (17,522 | ) | (17,688 | ) | (23,209 | ) | (30,580 | ) | (17,219 | ) | (0.9 | )% | 1.8 | % | |||||||||||
Treasury stock, at cost | (114,340 | ) | (114,169 | ) | (115,925 | ) | (119,439 | ) | (118,052 | ) | 0.1 | % | (3.1 | )% | |||||||||||
Total Shareholders' Equity | 861,137 | 846,723 | 826,587 | 809,376 | 813,012 | 1.7 | % | 5.9 | % | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 8,368,481 | $ | 8,310,102 | $ | 8,193,554 | $ | 8,147,411 | $ | 7,880,533 | 0.7 | % | 6.2 | % | |||||||||||
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | ||||||||||||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | September 30, | ||||||||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Cash and due from banks | $ | 116,441 | $ | 121,426 | $ | 117,782 | $ | 119,881 | $ | 114,279 | $ | 118,542 | $ | 113,720 | |||||||||||||
Interest-bearing deposits with other banks | 22,116 | 21,687 | 24,291 | 18,920 | 37,468 | 22,696 | 26,287 | ||||||||||||||||||||
Investment securities | 1,811,240 | 1,869,540 | 1,938,772 | 1,934,173 | 1,848,083 | 1,872,958 | 1,798,143 | ||||||||||||||||||||
Loans held for sale | 11,197 | 11,752 | 13,216 | 18,677 | 15,185 | 12,052 | 11,052 | ||||||||||||||||||||
Loans and leases | |||||||||||||||||||||||||||
Commercial and industrial | 1,786,461 | 1,752,237 | 1,657,279 | 1,612,485 | 1,464,508 | 1,732,191 | 1,361,861 | ||||||||||||||||||||
Lease financing | 96,518 | 100,103 | 94,935 | 89,200 | 83,300 | 97,183 | 81,333 | ||||||||||||||||||||
Construction - real estate | 380,894 | 348,100 | 322,600 | 295,574 | 259,972 | 350,642 | 234,052 | ||||||||||||||||||||
Commercial - real estate | 2,400,308 | 2,294,980 | 2,270,686 | 2,180,015 | 2,164,917 | 2,322,277 | 2,137,397 | ||||||||||||||||||||
Residential - real estate | 512,341 | 510,262 | 509,422 | 505,208 | 500,544 | 510,681 | 498,130 | ||||||||||||||||||||
Home equity | 466,062 | 466,170 | 466,722 | 465,131 | 462,283 | 466,317 | 459,942 | ||||||||||||||||||||
Installment | 47,428 | 44,438 | 41,698 | 41,148 | 42,008 | 44,532 | 43,580 | ||||||||||||||||||||
Credit card | 42,564 | 41,038 | 41,254 | 41,027 | 39,991 | 41,622 | 39,230 | ||||||||||||||||||||
Total loans | 5,732,576 | 5,557,328 | 5,404,596 | 5,229,788 | 5,017,523 | 5,565,445 | 4,855,525 | ||||||||||||||||||||
Less | |||||||||||||||||||||||||||
Allowance for loan and lease losses | 58,284 | 55,504 | 54,882 | 53,731 | 54,398 | 56,231 | 54,239 | ||||||||||||||||||||
Net loans | 5,674,292 | 5,501,824 | 5,349,714 | 5,176,057 | 4,963,125 | 5,509,214 | 4,801,286 | ||||||||||||||||||||
Premises and equipment | 133,360 | 137,927 | 138,377 | 138,689 | 139,457 | 136,543 | 140,236 | ||||||||||||||||||||
Goodwill and other intangibles | 211,029 | 211,363 | 211,707 | 211,722 | 179,333 | 211,365 | 156,964 | ||||||||||||||||||||
FDIC indemnification asset | 14,031 | 15,404 | 17,138 | 18,437 | 19,848 | 15,519 | 20,893 | ||||||||||||||||||||
Accrued interest and other assets | 328,450 | 312,914 | 307,948 | 313,722 | 294,611 | 316,481 | 285,117 | ||||||||||||||||||||
Total Assets | $ | 8,322,156 | $ | 8,203,837 | $ | 8,118,945 | $ | 7,950,278 | $ | 7,611,389 | $ | 8,215,370 | $ | 7,353,698 | |||||||||||||
LIABILITIES | |||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||
Interest-bearing demand | $ | 1,447,226 | $ | 1,483,025 | $ | 1,391,591 | $ | 1,423,915 | $ | 1,230,621 | $ | 1,440,638 | $ | 1,209,291 | |||||||||||||
Savings | 2,015,602 | 2,042,188 | 1,938,206 | 2,005,100 | 2,015,373 | 1,998,727 | 1,960,443 | ||||||||||||||||||||
Time | 1,284,059 | 1,342,226 | 1,419,456 | 1,416,041 | 1,369,892 | 1,348,345 | 1,305,751 | ||||||||||||||||||||
Total interest-bearing deposits | 4,746,887 | 4,867,439 | 4,749,253 | 4,845,056 | 4,615,886 | 4,787,710 | 4,475,485 | ||||||||||||||||||||
Noninterest-bearing | 1,453,842 | 1,441,068 | 1,386,768 | 1,402,283 | 1,344,049 | 1,427,323 | 1,318,746 | ||||||||||||||||||||
Total deposits | 6,200,729 | 6,308,507 | 6,136,021 | 6,247,339 | 5,959,935 | 6,215,033 | 5,794,231 | ||||||||||||||||||||
Federal funds purchased and securities sold | |||||||||||||||||||||||||||
under agreements to repurchase | 87,343 | 86,457 | 89,349 | 79,354 | 68,505 | 87,715 | 71,114 | ||||||||||||||||||||
FHLB short-term borrowings | 946,096 | 759,919 | 856,837 | 564,522 | 606,618 | 854,619 | 548,426 | ||||||||||||||||||||
Total short-term borrowings | 1,033,439 | 846,376 | 946,186 | 643,876 | 675,123 | 942,334 | 619,540 | ||||||||||||||||||||
Long-term debt | 119,603 | 119,575 | 119,553 | 119,532 | 71,583 | 119,577 | 55,645 | ||||||||||||||||||||
Total borrowed funds | 1,153,042 | 965,951 | 1,065,739 | 763,408 | 746,706 | 1,061,911 | 675,185 | ||||||||||||||||||||
Accrued interest and other liabilities | 112,089 | 91,967 | 95,597 | 121,775 | 92,352 | 99,929 | 83,693 | ||||||||||||||||||||
Total Liabilities | 7,465,860 | 7,366,425 | 7,297,357 | 7,132,522 | 6,798,993 | 7,376,873 | 6,553,109 | ||||||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
Common stock | 568,203 | 567,682 | 570,558 | 570,510 | 570,723 | 568,812 | 571,899 | ||||||||||||||||||||
Retained earnings | 419,901 | 406,788 | 395,756 | 385,295 | 378,160 | 407,527 | 366,700 | ||||||||||||||||||||
Accumulated other comprehensive loss | (17,701 | ) | (21,901 | ) | (26,165 | ) | (18,962 | ) | (19,725 | ) | (21,907 | ) | (19,375 | ) | |||||||||||||
Treasury stock, at cost | (114,107 | ) | (115,157 | ) | (118,561 | ) | (119,087 | ) | (116,762 | ) | (115,935 | ) | (118,635 | ) | |||||||||||||
Total Shareholders' Equity | 856,296 | 837,412 | 821,588 | 817,756 | 812,396 | 838,497 | 800,589 | ||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 8,322,156 | $ | 8,203,837 | $ | 8,118,945 | $ | 7,950,278 | $ | 7,611,389 | $ | 8,215,370 | $ | 7,353,698 | |||||||||||||
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||||||||||
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | ||||||||||||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||||||||||||||||||
Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | ||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Investment securities | $ | 1,811,240 | 2.50 | % | $ | 1,869,540 | 2.54 | % | $ | 1,848,083 | 2.39 | % | $ | 1,872,958 | 2.56 | % | $ | 1,798,143 | 2.40 | % | |||||||||||||||
Interest-bearing deposits with other banks | 22,116 | 0.54 | % | 21,687 | 0.50 | % | 37,468 | 0.25 | % | 22,696 | 0.52 | % | 26,287 | 0.26 | % | ||||||||||||||||||||
Gross loans (2) | 5,757,804 | 4.54 | % | 5,584,484 | 4.55 | % | 5,052,556 | 4.52 | % | 5,593,016 | 4.58 | % | 4,887,470 | 4.49 | % | ||||||||||||||||||||
Total earning assets | 7,591,160 | 4.04 | % | 7,475,711 | 4.03 | % | 6,938,107 | 3.93 | % | 7,488,670 | 4.06 | % | 6,711,900 | 3.91 | % | ||||||||||||||||||||
Nonearning assets | |||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (58,284 | ) | (55,504 | ) | (54,398 | ) | (56,231 | ) | (54,239 | ) | |||||||||||||||||||||||||
Cash and due from banks | 116,441 | 121,426 | 114,279 | 118,542 | 113,720 | ||||||||||||||||||||||||||||||
Accrued interest and other assets | 672,839 | 662,204 | 613,401 | 664,389 | 582,317 | ||||||||||||||||||||||||||||||
Total assets | $ | 8,322,156 | $ | 8,203,837 | $ | 7,611,389 | $ | 8,215,370 | $ | 7,353,698 | |||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 1,447,226 | 0.15 | % | $ | 1,483,025 | 0.13 | % | $ | 1,230,621 | 0.09 | % | $ | 1,440,638 | 0.14 | % | $ | 1,209,291 | 0.08 | % | |||||||||||||||
Savings | 2,015,602 | 0.27 | % | 2,042,188 | 0.25 | % | 2,015,373 | 0.19 | % | 1,998,727 | 0.26 | % | 1,960,443 | 0.22 | % | ||||||||||||||||||||
Time | 1,284,059 | 1.14 | % | 1,342,226 | 1.10 | % | 1,369,892 | 1.05 | % | 1,348,345 | 1.10 | % | 1,305,751 | 1.07 | % | ||||||||||||||||||||
Total interest-bearing deposits | 4,746,887 | 0.47 | % | 4,867,439 | 0.45 | % | 4,615,886 | 0.42 | % | 4,787,710 | 0.46 | % | 4,475,485 | 0.43 | % | ||||||||||||||||||||
Borrowed funds | |||||||||||||||||||||||||||||||||||
Short-term borrowings | 1,033,439 | 0.53 | % | 846,376 | 0.50 | % | 675,123 | 0.22 | % | 942,334 | 0.51 | % | 619,540 | 0.20 | % | ||||||||||||||||||||
Long-term debt | 119,603 | 5.11 | % | 119,575 | 5.17 | % | 71,583 | 1.56 | % | 119,577 | 5.17 | % | 55,645 | 2.10 | % | ||||||||||||||||||||
Total borrowed funds | 1,153,042 | 1.00 | % | 965,951 | 1.08 | % | 746,706 | 0.35 | % | 1,061,911 | 1.03 | % | 675,185 | 0.36 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 5,899,929 | 0.57 | % | 5,833,390 | 0.55 | % | 5,362,592 | 0.41 | % | 5,849,621 | 0.57 | % | 5,150,670 | 0.42 | % | ||||||||||||||||||||
Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,453,842 | 1,441,068 | 1,344,049 | 1,427,323 | 1,318,746 | ||||||||||||||||||||||||||||||
Other liabilities | 112,089 | 91,967 | 92,352 | 99,929 | 83,693 | ||||||||||||||||||||||||||||||
Shareholders' equity | 856,296 | 837,412 | 812,396 | 838,497 | 800,589 | ||||||||||||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 8,322,156 | $ | 8,203,837 | $ | 7,611,389 | $ | 8,215,370 | $ | 7,353,698 | |||||||||||||||||||||||||
Net interest income (1) | $ | 68,818 | $ | 67,132 | $ | 63,159 | $ | 202,505 | $ | 180,419 | |||||||||||||||||||||||||
Net interest spread (1) | 3.47 | % | 3.48 | % | 3.52 | % | 3.49 | % | 3.49 | % | |||||||||||||||||||||||||
Net interest margin (1) | 3.61 | % | 3.61 | % | 3.61 | % | 3.61 | % | 3.59 | % | |||||||||||||||||||||||||
(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 | $ | (214 | ) | $ | (239 | ) | $ | (453 | ) | $ | 492 | $ | (232 | ) | $ | 260 | $ | 2,082 | $ | 1,430 | $ | 3,512 | ||||||||||||||
Interest-bearing deposits with other banks | 2 | 1 | 3 | 27 | (21 | ) | 6 | 52 | (14 | ) | 38 | |||||||||||||||||||||||||
Gross loans (2) | (86 | ) | 2,678 | 2,592 | 314 | 8,070 | 8,384 | 3,080 | 24,146 | 27,226 | ||||||||||||||||||||||||||
Total earning assets | (298 | ) | 2,440 | 2,142 | 833 | 7,817 | 8,650 | 5,214 | 25,562 | 30,776 | ||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | $ | 223 | $ | (80 | ) | $ | 143 | $ | 584 | $ | 155 | $ | 739 | $ | 1,203 | $ | 1,082 | $ | 2,285 | |||||||||||||||||
Borrowed funds | ||||||||||||||||||||||||||||||||||||
Short-term borrowings | 55 | 260 | 315 | 520 | 474 | 994 | 1,431 | 1,230 | 2,661 | |||||||||||||||||||||||||||
Long-term debt | (19 | ) | 17 | (2 | ) | 640 | 618 | 1,258 | 1,274 | 2,470 | 3,744 | |||||||||||||||||||||||||
Total borrowed funds | 36 | 277 | 313 | 1,160 | 1,092 | 2,252 | 2,705 | 3,700 | 6,405 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 259 | 197 | 456 | 1,744 | 1,247 | 2,991 | 3,908 | 4,782 | 8,690 | |||||||||||||||||||||||||||
Net interest income (1) | $ | (557 | ) | $ | 2,243 | $ | 1,686 | $ | (911 | ) | $ | 6,570 | $ | 5,659 | $ | 1,306 | $ | 20,780 | $ | 22,086 | ||||||||||||||||
(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 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 56,708 | $ | 53,732 | $ | 53,398 | $ | 53,332 | $ | 52,876 | $ | 53,398 | $ | 52,858 | |||||||||||||
Provision for loan and lease losses | 1,687 | 4,037 | 1,655 | 1,864 | 2,647 | 7,379 | 7,777 | ||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||
Commercial and industrial | 296 | 265 | 479 | 777 | 1,808 | 1,040 | 4,631 | ||||||||||||||||||||
Construction - real estate | 64 | 28 | 3 | 0 | 85 | 95 | 85 | ||||||||||||||||||||
Commercial - real estate | 1,135 | 1,596 | 1,262 | 4,415 | 1,082 | 3,993 | 5,668 | ||||||||||||||||||||
Residential - real estate | 90 | 28 | 45 | 82 | 288 | 163 | 1,449 | ||||||||||||||||||||
Home equity | 475 | 398 | 340 | 633 | 268 | 1,213 | 1,258 | ||||||||||||||||||||
Installment | 223 | 30 | 73 | 129 | 155 | 326 | 380 | ||||||||||||||||||||
Other | 267 | 357 | 240 | 242 | 276 | 864 | 807 | ||||||||||||||||||||
Total gross charge-offs | 2,550 | 2,702 | 2,442 | 6,278 | 3,962 | 7,694 | 14,278 | ||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||
Commercial and industrial | 327 | 420 | 222 | 841 | 374 | 969 | 2,883 | ||||||||||||||||||||
Construction - real estate | 6 | 202 | 26 | 104 | 87 | 234 | 149 | ||||||||||||||||||||
Commercial - real estate | 997 | 681 | 442 | 2,927 | 691 | 2,120 | 2,287 | ||||||||||||||||||||
Residential - real estate | 38 | 81 | 63 | 214 | 237 | 182 | 344 | ||||||||||||||||||||
Home equity | 257 | 131 | 188 | 104 | 236 | 576 | 897 | ||||||||||||||||||||
Installment | 56 | 62 | 99 | 216 | 94 | 217 | 247 | ||||||||||||||||||||
Other | 92 | 64 | 81 | 74 | 52 | 237 | 168 | ||||||||||||||||||||
Total recoveries | 1,773 | 1,641 | 1,121 | 4,480 | 1,771 | 4,535 | 6,975 | ||||||||||||||||||||
Total net charge-offs | 777 | 1,061 | 1,321 | 1,798 | 2,191 | 3,159 | 7,303 | ||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 57,618 | $ | 56,708 | $ | 53,732 | $ | 53,398 | $ | 53,332 | $ | 57,618 | $ | 53,332 | |||||||||||||
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | |||||||||||||||||||||||||||
Commercial and industrial | (0.01 | )% | (0.04 | )% | 0.06 | % | (0.02 | )% | 0.39 | % | 0.01 | % | 0.17 | % | |||||||||||||
Construction - real estate | 0.06 | % | (0.20 | )% | (0.03 | )% | (0.14 | )% | 0.00 | % | (0.05 | )% | (0.04 | )% | |||||||||||||
Commercial - real estate | 0.02 | % | 0.16 | % | 0.15 | % | 0.27 | % | 0.07 | % | 0.11 | % | 0.21 | % | |||||||||||||
Residential - real estate | 0.04 | % | (0.04 | )% | (0.01 | )% | (0.10 | )% | 0.04 | % | 0.00 | % | 0.30 | % | |||||||||||||
Home equity | 0.19 | % | 0.23 | % | 0.13 | % | 0.45 | % | 0.03 | % | 0.18 | % | 0.10 | % | |||||||||||||
Installment | 1.40 | % | (0.29 | )% | (0.25 | )% | (0.84 | )% | 0.58 | % | 0.33 | % | 0.41 | % | |||||||||||||
Other | 0.50 | % | 0.83 | % | 0.47 | % | 0.51 | % | 0.72 | % | 0.60 | % | 0.71 | % | |||||||||||||
Total net charge-offs | 0.05 | % | 0.08 | % | 0.10 | % | 0.14 | % | 0.17 | % | 0.08 | % | 0.20 | % | |||||||||||||
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | |||||||||||||||||||||||||||
Nonaccrual loans (1) | |||||||||||||||||||||||||||
Commercial and industrial | $ | 3,201 | $ | 2,980 | $ | 3,917 | $ | 8,405 | $ | 7,438 | $ | 3,201 | $ | 7,438 | |||||||||||||
Construction - real estate | 0 | 0 | 0 | 0 | 79 | 0 | 79 | ||||||||||||||||||||
Commercial - real estate | 5,985 | 8,750 | 8,577 | 9,418 | 17,732 | 5,985 | 17,732 | ||||||||||||||||||||
Residential - real estate | 4,759 | 4,824 | 4,243 | 5,027 | 4,940 | 4,759 | 4,940 | ||||||||||||||||||||
Home equity | 3,815 | 4,123 | 5,036 | 4,898 | 5,203 | 3,815 | 5,203 | ||||||||||||||||||||
Installment | 327 | 433 | 113 | 127 | 321 | 327 | 321 | ||||||||||||||||||||
Lease financing | 214 | 1,167 | 121 | 122 | 0 | 214 | 0 | ||||||||||||||||||||
Nonaccrual loans | 18,301 | 22,277 | 22,007 | 27,997 | 35,713 | 18,301 | 35,713 | ||||||||||||||||||||
Accruing troubled debt restructurings (TDRs) | 32,164 | 28,022 | 30,127 | 28,876 | 20,226 | 32,164 | 20,226 | ||||||||||||||||||||
Total nonperforming loans | 50,465 | 50,299 | 52,134 | 56,873 | 55,939 | 50,465 | 55,939 | ||||||||||||||||||||
Other real estate owned (OREO) | 7,577 | 9,302 | 11,939 | 13,254 | 15,187 | 7,577 | 15,187 | ||||||||||||||||||||
Total nonperforming assets | 58,042 | 59,601 | 64,073 | 70,127 | 71,126 | 58,042 | 71,126 | ||||||||||||||||||||
Accruing loans past due 90 days or more | 130 | 981 | 59 | 108 | 58 | 130 | 58 | ||||||||||||||||||||
Total underperforming assets | $ | 58,172 | $ | 60,582 | $ | 64,132 | $ | 70,235 | $ | 71,184 | $ | 58,172 | $ | 71,184 | |||||||||||||
Total classified assets | $ | 142,169 | $ | 143,331 | $ | 133,940 | $ | 132,431 | $ | 130,132 | $ | 142,169 | $ | 130,132 | |||||||||||||
CREDIT QUALITY RATIOS | |||||||||||||||||||||||||||
Allowance for loan and lease losses to | |||||||||||||||||||||||||||
Nonaccrual loans | 314.84 | % | 254.56 | % | 244.16 | % | 190.73 | % | 149.33 | % | 314.84 | % | 149.33 | % | |||||||||||||
Nonperforming loans | 114.17 | % | 112.74 | % | 103.07 | % | 93.89 | % | 95.34 | % | 114.17 | % | 95.34 | % | |||||||||||||
Total ending loans | 1.00 | % | 0.99 | % | 0.98 | % | 0.99 | % | 1.02 | % | 1.00 | % | 1.02 | % | |||||||||||||
Nonperforming loans to total loans | 0.87 | % | 0.88 | % | 0.95 | % | 1.06 | % | 1.07 | % | 0.87 | % | 1.07 | % | |||||||||||||
Nonperforming assets to | |||||||||||||||||||||||||||
Ending loans, plus OREO | 1.00 | % | 1.04 | % | 1.16 | % | 1.30 | % | 1.36 | % | 1.00 | % | 1.36 | % | |||||||||||||
Total assets | 0.69 | % | 0.72 | % | 0.78 | % | 0.86 | % | 0.90 | % | 0.69 | % | 0.90 | % | |||||||||||||
Nonperforming assets, excluding accruing TDRs to | |||||||||||||||||||||||||||
Ending loans, plus OREO | 0.45 | % | 0.55 | % | 0.62 | % | 0.76 | % | 0.97 | % | 0.45 | % | 0.97 | % | |||||||||||||
Total assets | 0.31 | % | 0.38 | % | 0.41 | % | 0.51 | % | 0.65 | % | 0.31 | % | 0.65 | % | |||||||||||||
(1) Nonaccrual loans include nonaccrual TDRs of $5.6 million, $8.0 million, $7.5 million, $9.3 million, and $13.6 million, as of September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively. | |||||||||||||||||||||||||||
FIRST FINANCIAL BANCORP. | |||||||||||||||||||||||||||
CAPITAL ADEQUACY | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Nine months ended, | |||||||||||||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
PER COMMON SHARE | |||||||||||||||||||||||||||
Market Price | |||||||||||||||||||||||||||
High | $ | 22.52 | $ | 20.16 | $ | 18.36 | $ | 20.72 | $ | 19.69 | $ | 22.52 | $ | 19.69 | |||||||||||||
Low | $ | 18.83 | $ | 17.49 | $ | 14.91 | $ | 17.83 | $ | 17.55 | $ | 14.91 | $ | 16.52 | |||||||||||||
Close | $ | 21.84 | $ | 19.45 | $ | 18.18 | $ | 18.07 | $ | 19.08 | $ | 21.84 | $ | 19.08 | |||||||||||||
Average shares outstanding - basic | 61,280,283 | 61,194,254 | 61,036,797 | 60,985,096 | 61,135,749 | 61,170,845 | 61,088,794 | ||||||||||||||||||||
Average shares outstanding - diluted | 62,086,067 | 62,027,008 | 61,840,247 | 61,861,182 | 61,987,795 | 61,962,961 | 61,858,724 | ||||||||||||||||||||
Ending shares outstanding | 61,952,873 | 61,959,529 | 61,855,027 | 61,641,680 | 61,713,633 | 61,952,873 | 61,713,633 | ||||||||||||||||||||
Total shareholders' equity | $ | 861,137 | $ | 846,723 | $ | 826,587 | $ | 809,376 | $ | 813,012 | $ | 861,137 | $ | 813,012 | |||||||||||||
REGULATORY CAPITAL (1) | Preliminary | Preliminary | |||||||||||||||||||||||||
Common equity tier 1 capital | $ | 688,363 | $ | 673,313 | $ | 658,001 | $ | 648,748 | $ | 638,574 | $ | 688,363 | $ | 638,574 | |||||||||||||
Common equity tier 1 capital ratio | 10.20 | % | 10.07 | % | 10.16 | % | 10.28 | % | 10.51 | % | 10.20 | % | 10.51 | % | |||||||||||||
Tier 1 capital | $ | 688,467 | $ | 673,417 | $ | 658,105 | $ | 648,852 | $ | 638,678 | $ | 688,467 | $ | 638,678 | |||||||||||||
Tier 1 ratio | 10.20 | % | 10.07 | % | 10.16 | % | 10.29 | % | 10.52 | % | 10.20 | % | 10.52 | % | |||||||||||||
Total capital | $ | 865,248 | $ | 849,303 | $ | 831,924 | $ | 822,431 | $ | 812,029 | $ | 865,248 | $ | 812,029 | |||||||||||||
Total capital ratio | 12.82 | % | 12.70 | % | 12.84 | % | 13.04 | % | 13.37 | % | 12.82 | % | 13.37 | % | |||||||||||||
Total capital in excess of minimum | |||||||||||||||||||||||||||
requirement | $ | 282,996 | $ | 272,708 | $ | 273,135 | $ | 317,780 | $ | 326,117 | $ | 282,996 | $ | 326,117 | |||||||||||||
Total risk-weighted assets | $ | 6,750,749 | $ | 6,685,158 | $ | 6,478,716 | $ | 6,308,139 | $ | 6,073,899 | $ | 6,750,749 | $ | 6,073,899 | |||||||||||||
Leverage ratio | 8.45 | % | 8.38 | % | 8.27 | % | 8.33 | % | 8.58 | % | 8.45 | % | 8.58 | % | |||||||||||||
OTHER CAPITAL RATIOS | |||||||||||||||||||||||||||
Ending shareholders' equity to ending assets | 10.29 | % | 10.19 | % | 10.09 | % | 9.93 | % | 10.32 | % | 10.29 | % | 10.32 | % | |||||||||||||
Ending tangible shareholders' equity to ending tangible assets | 7.97 | % | 7.85 | % | 7.71 | % | 7.53 | % | 7.84 | % | 7.97 | % | 7.84 | % | |||||||||||||
Average shareholders' equity to average assets | 10.29 | % | 10.21 | % | 10.12 | % | 10.29 | % | 10.67 | % | 10.21 | % | 10.89 | % | |||||||||||||
Average tangible shareholders' equity to average tangible assets | 7.96 | % | 7.83 | % | 7.71 | % | 7.83 | % | 8.12 | % | 7.84 | % | 8.25 | % | |||||||||||||
REPURCHASE PROGRAM (2) | |||||||||||||||||||||||||||
Shares repurchased | 0 | 0 | 0 | 91,032 | 148,935 | 0 | 148,935 | ||||||||||||||||||||
Average share repurchase price | N/A | N/A | N/A | $ | 18.85 | $ | 18.68 | N/A | $ | 18.68 | |||||||||||||||||
Total cost of shares repurchased | N/A | N/A | N/A | $ | 1,716 | $ | 2,783 | N/A | $ | 2,783 | |||||||||||||||||
(1) 2015 amounts and ratios are calculated under the Basel III standardized approach | |||||||||||||||||||||||||||
(2) Represents share repurchases as part of publicly announced plans. | |||||||||||||||||||||||||||
N/A = Not applicable |
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