EX-99.1 2 a8k3q18earningsreleaseex991.htm EXHIBIT 99.1 Document
Exhibit 99.1
yellowbar.jpgffbclogo.jpg                            
            
First Financial Bancorp Announces Third Quarter 2018 Results


Cincinnati, Ohio - October 18, 2018 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the third quarter of 2018.

For the three months ended September 30, 2018, the Company reported net income of $50.7 million, or $0.51 per diluted common share. These results compare to net income of $36.4 million, or $0.37 per diluted common share, for the second quarter of 2018 and $24.8 million, or $0.40 per diluted common share, for the third quarter of 2017. Net income was negatively impacted during the quarter by $6.3 million of merger related items, which reduced earnings per diluted common share by $0.07. For the nine months ended September 30, 2018, First Financial had earnings per diluted common share of $1.36 compared to $1.16 for the same period in 2017.

Return on average assets for the third quarter of 2018 was 1.45% while return on average tangible common equity was 18.52%. These compare to a return on average assets of 1.05% and return on average tangible common equity of 13.75% in the second quarter of 2018 and a return on average assets of 1.13% and a return on average tangible common equity of 14.11% in the third quarter of 2017. On an adjusted(1) basis, third quarter 2018 return on average assets was 1.64% and return on average tangible common equity was 20.83%.

Third quarter 2018 highlights include:

•
After adjustments(1) for merger related items:
◦
Net income of $0.58 per diluted common share
◦
1.64% return on average assets
◦
20.83% return on average tangible common equity

•
Total revenue of $152.8 million, as adjusted(1)
◦
Net interest margin declined 3 basis points from the linked quarter to 4.12% on a fully tax equivalent basis(1)  
◦
Noninterest income increased $0.7 million to $29.3 million, as adjusted(1) 

•
Noninterest expenses of $85.4 million, or $78.0 million as adjusted(1)
◦
Efficiency ratio of 56.13% for the third quarter; 51.06% as adjusted(1) 

•
Improved loan origination activity
◦
Loan fundings increased 9% compared to the linked quarter
◦
Origination commitments increased 15% compared to the linked quarter

•
Stable credit performance with provision expense of $3.2 million; annualized net recoveries of 2 basis points as a percentage of average loans

Archie Brown, President and Chief Executive Officer, commented, “We are pleased with our third quarter performance as it demonstrates the earnings power of the Company. On an adjusted basis(1), earnings per share
____________________________________________________________________________________________

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

1


increased to $0.58 as our strong net interest margin, combined with improved efficiency, resulted in a top quartile return on assets and return on average tangible common equity.”
Mr. Brown continued, “We are encouraged with the increases in loan fundings and commitments, however lower than expected credit line utilization and elevated payoffs led to a slight decline in overall balances. During the quarter we added depth to our commercial banking and business banking teams in addition to wealth advisors and mortgage loan officers and are approaching planned staffing levels in our targeted growth markets. We are optimistic that these investments will contribute to our planned revenue growth in 2019.”

Mr. Brown concluded, “Our strong earnings for the quarter led to further strengthening of our capital ratios with tangible common equity increasing to 8.53% and tangible book value per share increasing to $11.25. As a result, in July our Board of Directors elected to increase the common dividend from $0.19 to $0.20 per share, which was the second dividend increase in 2018.”
Full detail of the Company’s third quarter and year to date performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, October 19, 2018 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10124868. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

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

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




2

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

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; (ii) the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iii) management’s ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the possibility that any of the anticipated benefits of the Company’s recent merger with MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers’ performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Form 10-K for the year ended December 31, 2017, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov.

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

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of September 30, 2018, the Company had $13.8 billion in assets, $8.8 billion in loans, $9.8 billion in deposits and $2.0 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.8 billion in assets under management as of September 30, 2018. The Company’s primary operating markets are located in Ohio, Indiana and Kentucky where it operated 159 banking centers as of September 30, 2018, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.


Contact Information
Investors/Analysts                    Media
Jamie Anderson                        Lauren Ponti-Zins
Chief Financial Officer                    Marketing Specialist
(513) 887-5400                        (513) 246-2137
InvestorRelations@bankatfirst.com            media@bankatfirst.com    

3


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Selected Financial Information
September 30, 2018
(unaudited)


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,
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
RESULTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
50,657

 
$
36,418

 
$
30,506

 
$
24,811

 
$
24,826

 
$
117,581

 
$
71,976

Net earnings per share - basic
$
0.52

 
$
0.37

 
$
0.49

 
$
0.40

 
$
0.40

 
$
1.37

 
$
1.17

Net earnings per share - diluted
$
0.51

 
$
0.37

 
$
0.49

 
$
0.40

 
$
0.40

 
$
1.36

 
$
1.16

Dividends declared per share
$
0.20

 
$
0.19

 
$
0.19

 
$
0.17

 
$
0.17

 
$
0.58

 
$
0.51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
KEY FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.45
 %
 
1.05
%
 
1.40
%
 
1.13
%
 
1.13
%
 
1.29
%
 
1.12
%
Return on average shareholders' equity
9.94
 %
 
7.36
%
 
13.31
%
 
10.70
%
 
10.85
%
 
9.50
%
 
10.82
%
Return on average tangible shareholders' equity
18.52
 %
 
13.75
%
 
17.18
%
 
13.85
%
 
14.11
%
 
16.42
%
 
14.16
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
4.06
 %
 
4.10
%
 
3.80
%
 
3.75
%
 
3.50
%
 
4.01
%
 
3.54
%
Net interest margin (fully tax equivalent) (1)
4.12
 %
 
4.15
%
 
3.84
%
 
3.82
%
 
3.57
%
 
4.06
%
 
3.61
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending shareholders' equity as a percent of ending assets
14.70
 %
 
14.46
%
 
10.56
%
 
10.46
%
 
10.44
%
 
14.70
%
 
10.44
%
Ending tangible shareholders' equity as a percent of:
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending tangible assets
8.53
 %
 
8.30
%
 
8.41
%
 
8.30
%
 
8.25
%
 
8.53
%
 
8.25
%
Risk-weighted assets
10.77
 %
 
10.52
%
 
10.09
%
 
10.15
%
 
9.95
%
 
10.77
%
 
9.95
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity as a percent of average assets
14.62
 %
 
14.33
%
 
10.53
%
 
10.54
%
 
10.42
%
 
13.54
%
 
10.38
%
Average tangible shareholders' equity as a percent of
 
 
 
 
 
 
 
 
 
 
 
 
 
    average tangible assets
8.42
 %
 
8.16
%
 
8.35
%
 
8.34
%
 
8.21
%
 
8.31
%
 
8.13
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
$
20.79

 
$
20.56

 
$
15.11

 
$
14.99

 
$
14.74

 
$
20.79

 
$
14.74

Tangible book value per share
$
11.25

 
$
11.01

 
$
11.75

 
$
11.62

 
$
11.36

 
$
11.25

 
$
11.36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 ratio (2)
11.52
 %
 
11.15
%
 
10.77
%
 
10.63
%
 
10.53
%
 
11.52
%
 
10.53
%
Tier 1 ratio (2)
11.93
 %
 
11.55
%
 
10.77
%
 
10.63
%
 
10.53
%
 
11.93
%
 
10.53
%
Total capital ratio (2)
13.77
 %
 
13.36
%
 
13.17
%
 
13.07
%
 
12.98
%
 
13.77
%
 
12.98
%
Leverage ratio (2)
9.41
 %
 
9.06
%
 
9.00
%
 
8.84
%
 
8.74
%
 
9.41
%
 
8.74
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCE SHEET ITEMS
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans (3)
$
8,848,710

 
$
8,933,400

 
$
6,016,492

 
$
5,952,290

 
$
5,902,053

 
$
7,943,242

 
$
5,809,998

FDIC indemnification asset
—

 
—

 
1,502

 
7,413

 
8,932

 
495

 
10,250

Investment securities
3,168,044

 
3,157,339

 
2,042,781

 
2,020,040

 
2,041,785

 
2,793,510

 
1,995,101

Interest-bearing deposits with other banks
39,873

 
29,261

 
27,073

 
25,357

 
37,199

 
32,116

 
32,812

  Total earning assets
$
12,056,627

 
$
12,120,000

 
$
8,087,848

 
$
8,005,100

 
$
7,989,969

 
$
10,769,363

 
$
7,848,161

Total assets
$
13,822,675

 
$
13,956,360

 
$
8,830,176

 
$
8,731,956

 
$
8,716,917

 
$
12,221,358

 
$
8,570,777

Noninterest-bearing deposits
$
2,388,976

 
$
2,421,230

 
$
1,570,572

 
$
1,637,228

 
$
1,510,032

 
$
2,129,924

 
$
1,507,748

Interest-bearing deposits
7,499,112

 
7,961,405

 
5,332,740

 
5,202,412

 
5,170,365

 
6,939,021

 
5,057,285

  Total deposits
$
9,888,088

 
$
10,382,635

 
$
6,903,312

 
$
6,839,640

 
$
6,680,397

 
$
9,068,945

 
$
6,565,033

Borrowings
$
1,748,415

 
$
1,408,024

 
$
866,848

 
$
842,211

 
$
999,818

 
$
1,344,325

 
$
987,874

Shareholders' equity
$
2,021,400

 
$
2,000,093

 
$
929,474

 
$
920,194

 
$
908,057

 
$
1,654,322

 
$
889,760

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
Allowance to ending loans
0.65
 %
 
0.61
%
 
0.89
%
 
0.90
%
 
0.91
%
 
0.65
%
 
0.91
%
Allowance to nonaccrual loans
136.22
 %
 
133.65
%
 
179.57
%
 
224.32
%
 
181.07
%
 
136.22
%
 
181.07
%
Allowance to nonperforming loans
92.08
 %
 
86.80
%
 
120.24
%
 
129.77
%
 
109.48
%
 
92.08
%
 
109.48
%
Nonperforming loans to total loans
0.71
 %
 
0.70
%
 
0.74
%
 
0.69
%
 
0.83
%
 
0.71
%
 
0.83
%
Nonperforming assets to ending loans, plus OREO
0.73
 %
 
0.72
%
 
0.76
%
 
0.74
%
 
0.89
%
 
0.73
%
 
0.89
%
Nonperforming assets to total assets
0.47
 %
 
0.46
%
 
0.52
%
 
0.50
%
 
0.60
%
 
0.47
%
 
0.60
%
Classified assets to total assets
1.00
 %
 
1.00
%
 
0.98
%
 
0.98
%
 
1.08
%
 
1.00
%
 
1.08
%
Net charge-offs to average loans (annualized)
(0.02
)%
 
0.18
%
 
0.13
%
 
0.02
%
 
0.22
%
 
0.09
%
 
0.17
%

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate for 2018 and a 35% tax rate for 2017. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(2) September 30, 2018 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.


2


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,
 
2018
 
2017
 
% Change
 
2018
 
2017
 
% Change
Interest income
 
 
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
123,397

 
$
71,148

 
73.4
 %
 
$
320,607

 
$
205,764

 
55.8
 %
  Investment securities

 
 
 
 
 
 
 
 
 
 
     Taxable
21,801

 
13,150

 
65.8
 %
 
56,315

 
37,356

 
50.8
 %
     Tax-exempt
3,807

 
1,537

 
147.7
 %
 
9,532

 
4,347

 
119.3
 %
        Total investment securities interest
25,608

 
14,687

 
74.4
 %
 
65,847

 
41,703

 
57.9
 %
  Other earning assets
215

 
(917
)
 
123.4
 %
 
499

 
(2,932
)
 
117.0
 %
       Total interest income
149,220

 
84,918

 
75.7
 %
 
386,953

 
244,535

 
58.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
  Deposits
14,672

 
10,335

 
42.0
 %
 
39,764

 
25,939

 
53.3
 %
  Short-term borrowings
6,052

 
2,566

 
135.9
 %
 
12,847

 
6,049

 
112.4
 %
  Long-term borrowings
5,011

 
1,538

 
225.8
 %
 
11,066

 
4,616

 
139.7
 %
      Total interest expense
25,735

 
14,439

 
78.2
 %
 
63,677

 
36,604

 
74.0
 %
      Net interest income
123,485

 
70,479

 
75.2
 %
 
323,276

 
207,931

 
55.5
 %
  Provision for loan and lease losses
3,238

 
2,953

 
9.7
 %
 
9,276

 
3,787

 
144.9
 %
      Net interest income after provision for loan and lease losses
120,247

 
67,526

 
78.1
 %
 
314,000

 
204,144

 
53.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
10,316

 
5,169

 
99.6
 %
 
24,923

 
14,585

 
70.9
 %
  Trust and wealth management fees
3,728

 
3,324

 
12.2
 %
 
11,379

 
10,476

 
8.6
 %
  Bankcard income
5,261

 
3,272

 
60.8
 %
 
13,998

 
9,908

 
41.3
 %
  Client derivative fees
3,029

 
1,779

 
70.3
 %
 
6,249

 
4,371

 
43.0
 %
  Net gains from sales of loans
1,739

 
1,455

 
19.5
 %
 
4,643

 
3,998

 
16.1
 %
  Net gains (losses) on sale of investment securities
(167
)
 
276

 
(160.5
)%
 
(197
)
 
1,630

 
(112.1
)%
  Other
4,778

 
7,667

 
(37.7
)%
 
12,883

 
12,792

 
0.7
 %
      Total noninterest income
28,684

 
22,942

 
25.0
 %
 
73,878

 
57,760

 
27.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
50,852

 
33,827

 
50.3
 %
 
137,485

 
97,121

 
41.6
 %
  Net occupancy
6,765

 
4,328

 
56.3
 %
 
17,893

 
13,145

 
36.1
 %
  Furniture and equipment
4,072

 
2,161

 
88.4
 %
 
11,410

 
6,474

 
76.2
 %
  Data processing
4,502

 
3,455

 
30.3
 %
 
22,478

 
10,254

 
119.2
 %
  Marketing
2,502

 
649

 
285.5
 %
 
5,947

 
2,141

 
177.8
 %
  Communication
785

 
430

 
82.6
 %
 
2,362

 
1,345

 
75.6
 %
  Professional services
2,621

 
2,030

 
29.1
 %
 
10,478

 
5,257

 
99.3
 %
  State intangible tax
1,223

 
721

 
69.6
 %
 
3,066

 
2,163

 
41.7
 %
  FDIC assessments
734

 
1,051

 
(30.2
)%
 
2,951

 
3,001

 
(1.7
)%
  Loss (gain) - other real estate owned
538

 
237

 
127.0
 %
 
332

 
423

 
(21.5
)%
  Other
10,821

 
5,554

 
94.8
 %
 
26,056

 
15,720

 
65.8
 %
      Total noninterest expenses
85,415

 
54,443

 
56.9
 %
 
240,458

 
157,044

 
53.1
 %
Income before income taxes
63,516

 
36,025

 
76.3
 %
 
147,420

 
104,860

 
40.6
 %
Income tax expense
12,859

 
11,199

 
14.8
 %
 
29,839

 
32,884

 
(9.3
)%
      Net income
$
50,657

 
$
24,826

 
104.0
 %
 
$
117,581

 
$
71,976

 
63.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
ADDITIONAL DATA
 
 
 
 
 
 
 
 
 
 
 
Net earnings per share - basic
$
0.52

 
$
0.40

 
 
 
$
1.37

 
$
1.17

 
 
Net earnings per share - diluted
$
0.51

 
$
0.40

 
 
 
$
1.36

 
$
1.16

 
 
Dividends declared per share
$
0.20

 
$
0.17

 
 
 
$
0.58

 
$
0.51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.45
%
 
1.13
%
 
 
 
1.29
%
 
1.12
%
 
 
Return on average shareholders' equity
9.94
%
 
10.85
%
 
 
 
9.50
%
 
10.82
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
149,220

 
$
84,918

 
75.7
 %
 
$
386,953

 
$
244,535

 
58.2
 %
Tax equivalent adjustment
1,567

 
1,353

 
15.8
 %
 
3,705

 
3,872

 
(4.3
)%
   Interest income - tax equivalent
150,787

 
86,271

 
74.8
 %
 
390,658

 
248,407

 
57.3
 %
Interest expense
25,735

 
14,439

 
78.2
 %
 
63,677

 
36,604

 
74.0
 %
   Net interest income - tax equivalent
$
125,052

 
$
71,832

 
74.1
 %
 
$
326,981

 
$
211,803

 
54.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
4.06
%
 
3.50
%
 
 
 
4.01
%
 
3.54
%
 
 
Net interest margin (fully tax equivalent) (1)
4.12
%
 
3.57
%
 
 
 
4.06
%
 
3.61
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Full-time equivalent employees
2,028

 
1,363

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate for 2018 and a 35% tax rate for 2017. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.
 
 
 
 
 
 
 
 
 
 
 

3

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
2018
 
Third
 
Second
 
First
 
Full
 
% Change
 
Quarter
 
Quarter
 
Quarter
 
Year
 
Linked Qtr.
Interest income
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
123,397

 
$
122,290

 
$
74,920

 
$
320,607

 
0.9
 %
  Investment securities
 
 
 
 
 
 
 
 
 
     Taxable
21,801

 
20,844

 
13,670

 
56,315

 
4.6
 %
     Tax-exempt
3,807

 
4,068

 
1,657

 
9,532

 
(6.4
)%
        Total investment securities interest
25,608

 
24,912

 
15,327

 
65,847

 
2.8
 %
  Other earning assets
215

 
177

 
107

 
499

 
21.5
 %
       Total interest income
149,220

 
147,379

 
90,354

 
386,953

 
1.2
 %
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
  Deposits
14,672

 
14,794

 
10,298

 
39,764

 
(0.8
)%
  Short-term borrowings
6,052

 
4,132

 
2,663

 
12,847

 
46.5
 %
  Long-term borrowings
5,011

 
4,474

 
1,581

 
11,066

 
12.0
 %
      Total interest expense
25,735

 
23,400

 
14,542

 
63,677

 
10.0
 %
      Net interest income
123,485

 
123,979

 
75,812

 
323,276

 
(0.4
)%
  Provision for loan and lease losses
3,238

 
3,735

 
2,303

 
9,276

 
(13.3
)%
      Net interest income after provision for loan and lease losses
120,247

 
120,244

 
73,509

 
314,000

 
0.0
 %
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
10,316

 
9,568

 
5,039

 
24,923

 
7.8
 %
  Trust and wealth management fees
3,728

 
3,697

 
3,954

 
11,379

 
0.8
 %
  Bankcard income
5,261

 
5,343

 
3,394

 
13,998

 
(1.5
)%
  Client derivative fees
3,029

 
1,463

 
1,757

 
6,249

 
107.0
 %
  Net gains from sales of loans
1,739

 
2,316

 
588

 
4,643

 
(24.9
)%
  Net gains (losses) on sale of investment securities
(167
)
 
(30
)
 
0

 
(197
)
 
456.7
 %
  Other
4,778

 
5,899

 
2,206

 
12,883

 
(19.0
)%
      Total noninterest income
28,684

 
28,256

 
16,938

 
73,878

 
1.5
 %
 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
50,852

 
55,531

 
31,102

 
137,485

 
(8.4
)%
  Net occupancy
6,765

 
6,631

 
4,497

 
17,893

 
2.0
 %
  Furniture and equipment
4,072

 
5,298

 
2,040

 
11,410

 
(23.1
)%
  Data processing
4,502

 
14,304

 
3,672

 
22,478

 
(68.5
)%
  Marketing
2,502

 
2,644

 
801

 
5,947

 
(5.4
)%
  Communication
785

 
1,118

 
459

 
2,362

 
(29.8
)%
  Professional services
2,621

 
5,659

 
2,198

 
10,478

 
(53.7
)%
  State intangible tax
1,223

 
1,078

 
765

 
3,066

 
13.5
 %
  FDIC assessments
734

 
1,323

 
894

 
2,951

 
(44.5
)%
  Loss (gain) - other real estate owned
538

 
(283
)
 
77

 
332

 
(290.1
)%
  Other
10,821

 
9,452

 
5,783

 
26,056

 
14.5
 %
      Total noninterest expenses
85,415

 
102,755

 
52,288

 
240,458

 
(16.9
)%
Income before income taxes
63,516

 
45,745

 
38,159

 
147,420

 
38.8
 %
Income tax expense
12,859

 
9,327

 
7,653

 
29,839

 
37.9
 %
      Net income
$
50,657

 
$
36,418

 
$
30,506

 
$
117,581

 
39.1
 %
 
 
 
 
 
 
 
 
 
 
ADDITIONAL DATA
 
 
 
 
 
 
 
 
 
Net earnings per share - basic
$
0.52

 
$
0.37

 
$
0.49

 
$
1.37

 
 
Net earnings per share - diluted
$
0.51

 
$
0.37

 
$
0.49

 
$
1.36

 
 
Dividends declared per share
$
0.20

 
$
0.19

 
$
0.19

 
$
0.58

 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.45
%
 
1.05
%
 
1.40
%
 
1.29
%
 
 
Return on average shareholders' equity
9.94
%
 
7.36
%
 
13.31
%
 
9.50
%
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
149,220

 
$
147,379

 
$
90,354

 
$
386,953

 
1.2
 %
Tax equivalent adjustment
1,567

 
1,420

 
718

 
3,705

 
10.4
 %
   Interest income - tax equivalent
150,787

 
148,799

 
91,072

 
390,658

 
1.3
 %
Interest expense
25,735

 
23,400

 
14,542

 
63,677

 
10.0
 %
   Net interest income - tax equivalent
$
125,052

 
$
125,399

 
$
76,530

 
$
326,981

 
(0.3
)%
 
 
 
 
 
 
 
 
 
 
Net interest margin
4.06
%
 
4.10
%
 
3.80
%
 
4.01
%
 
 
Net interest margin (fully tax equivalent) (1)
4.12
%
 
4.15
%
 
3.84
%
 
4.06
%
 
 
 
 
 
 
 
 
 
 
 
 
Full-time equivalent employees
2,028

 
2,118

 
1,289

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate for 2018 and a 35% tax rate for 2017. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.
 
 
 
 
 
 
 
 
 

4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
2017
 
Fourth
 
Third
 
Second
 
First
 
Full
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Year
Interest income
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
74,347

 
$
71,148

 
$
67,748

 
$
66,868

 
$
280,111

  Investment securities
 
 
 
 
 
 
 
 
 
     Taxable
13,212

 
13,150

 
12,598

 
11,608

 
50,568

     Tax-exempt
1,571

 
1,537

 
1,457

 
1,353

 
5,918

        Total investment securities interest
14,783

 
14,687

 
14,055

 
12,961

 
56,486

  Other earning assets
(592
)
 
(917
)
 
(1,014
)
 
(1,001
)
 
(3,524
)
       Total interest income
88,538

 
84,918

 
80,789

 
78,828

 
333,073

 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
  Deposits
9,243

 
10,335

 
8,679

 
6,925

 
35,182

  Short-term borrowings
2,144

 
2,566

 
2,051

 
1,432

 
8,193

  Long-term borrowings
1,537

 
1,538

 
1,539

 
1,539

 
6,153

      Total interest expense
12,924

 
14,439

 
12,269

 
9,896

 
49,528

      Net interest income
75,614

 
70,479

 
68,520

 
68,932

 
283,545

  Provision for loan and lease losses
(205
)
 
2,953

 
467

 
367

 
3,582

      Net interest income after provision for loan and lease losses
75,819

 
67,526

 
68,053

 
68,565

 
279,963

 
 
 
 
 
 
 
 
 


Noninterest income
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
5,190

 
5,169

 
4,772

 
4,644

 
19,775

  Trust and wealth management fees
3,597

 
3,324

 
3,405

 
3,747

 
14,073

  Bankcard income
3,390

 
3,272

 
3,501

 
3,135

 
13,298

  Client derivative fees
2,047

 
1,779

 
1,489

 
1,103

 
6,418

  Net gains from sales of loans
1,171

 
1,455

 
1,327

 
1,216

 
5,169

  Net gains on sale of investment securities
19

 
276

 
838

 
516

 
1,649

  Other
2,968

 
7,667

 
2,122

 
3,003

 
15,760

      Total noninterest income
18,382

 
22,942

 
17,454

 
17,364

 
76,142

 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
35,439

 
33,827

 
31,544

 
31,750

 
132,560

  Net occupancy
4,252

 
4,328

 
4,302

 
4,515

 
17,397

  Furniture and equipment
1,969

 
2,161

 
2,136

 
2,177

 
8,443

  Data processing
3,768

 
3,455

 
3,501

 
3,298

 
14,022

  Marketing
1,060

 
649

 
982

 
510

 
3,201

  Communication
474

 
430

 
468

 
447

 
1,819

  Professional services
9,766

 
2,030

 
1,469

 
1,758

 
15,023

  State intangible tax
492

 
721

 
721

 
721

 
2,655

  FDIC assessments
943

 
1,051

 
1,018

 
932

 
3,944

  Loss (gain) - other real estate owned
219

 
237

 
162

 
24

 
642

  Other
24,516

 
5,554

 
5,253

 
4,913

 
40,236

      Total noninterest expenses
82,898

 
54,443

 
51,556

 
51,045

 
239,942

Income before income taxes
11,303

 
36,025

 
33,951

 
34,884

 
116,163

Income tax expense (benefit)
(13,508
)
 
11,199

 
11,215

 
10,470

 
19,376

      Net income
$
24,811

 
$
24,826

 
$
22,736

 
$
24,414

 
$
96,787

 
 
 
 
 
 
 
 
 


ADDITIONAL DATA
 
 
 
 
 
 
 
 
 
Net earnings per share - basic
$
0.40

 
$
0.40

 
$
0.37

 
$
0.40

 
$
1.57

Net earnings per share - diluted
$
0.40

 
$
0.40

 
$
0.37

 
$
0.39

 
$
1.56

Dividends declared per share
$
0.17

 
$
0.17

 
$
0.17

 
$
0.17

 
$
0.68

 
 
 
 
 
 
 
 
 
 
Return on average assets
1.13
%
 
1.13
%
 
1.06
%
 
1.18
%
 
1.12
%
Return on average shareholders' equity
10.70
%
 
10.85
%
 
10.25
%
 
11.36
%
 
10.78
%
 
 
 
 
 
 
 
 
 
 
Interest income
$
88,538

 
$
84,918

 
$
80,789

 
$
78,828

 
$
333,073

Tax equivalent adjustment
1,387

 
1,353

 
1,294

 
1,225

 
5,259

   Interest income - tax equivalent
89,925

 
86,271

 
82,083

 
80,053

 
338,332

Interest expense
12,924

 
14,439

 
12,269

 
9,896

 
49,528

   Net interest income - tax equivalent
$
77,001

 
$
71,832

 
$
69,814

 
$
70,157

 
$
288,804

 
 
 
 
 
 
 
 
 
 
Net interest margin
3.75
%
 
3.50
%
 
3.50
%
 
3.63
%
 
3.59
%
Net interest margin (fully tax equivalent) (1)
3.82
%
 
3.57
%
 
3.56
%
 
3.70
%
 
3.66
%
 
 
 
 
 
 
 
 
 
 
Full-time equivalent employees
1,304

 
1,363

 
1,429

 
1,424

 
 
 
 
 
 
 
 
 
 
 
 
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate for 2018 and a 35% tax rate for 2017. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

5


FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
% Change
 
% Change
 
2018
 
2018
 
2018
 
2017
 
2017
 
Linked Qtr.
 
Comparable Qtr.
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
     Cash and due from banks
$
193,288

 
$
216,667

 
$
116,581

 
$
150,650

 
$
117,840

 
(10.8
)%
 
64.0
 %
     Interest-bearing deposits with other banks
28,989

 
37,915

 
10,200

 
33,974

 
34,787

 
(23.5
)%
 
(16.7
)%
     Investment securities available-for-sale
2,626,726

 
2,654,909

 
1,359,381

 
1,349,408

 
1,286,770

 
(1.1
)%
 
104.1
 %
     Investment securities held-to-maturity
434,369

 
443,957

 
633,722

 
654,008

 
669,816

 
(2.2
)%
 
(35.2
)%
     Other investments
115,757

 
95,004

 
53,070

 
53,140

 
53,198

 
21.8
 %
 
117.6
 %
     Loans held for sale
13,277

 
15,821

 
8,048

 
11,502

 
16,466

 
(16.1
)%
 
(19.4
)%
     Loans and leases
 
 
 
 
 
 
 
 
 
 
 
 
 
       Commercial and industrial
2,426,590

 
2,440,596

 
1,943,741

 
1,912,743

 
1,886,093

 
(0.6
)%
 
28.7
 %
       Lease financing
95,317

 
96,198

 
81,617

 
89,347

 
86,014

 
(0.9
)%
 
10.8
 %
       Construction real estate
565,077

 
555,468

 
494,665

 
467,730

 
420,941

 
1.7
 %
 
34.2
 %
       Commercial real estate
3,868,143

 
3,888,993

 
2,544,051

 
2,490,091

 
2,523,387

 
(0.5
)%
 
53.3
 %
       Residential real estate
932,962

 
918,904

 
468,584

 
471,391

 
477,964

 
1.5
 %
 
95.2
 %
       Home equity
816,133

 
835,031

 
483,643

 
493,604

 
494,342

 
(2.3
)%
 
65.1
 %
       Installment
97,413

 
100,726

 
39,248

 
41,586

 
43,650

 
(3.3
)%
 
123.2
 %
       Credit card
45,741

 
48,665

 
46,472

 
46,691

 
44,646

 
(6.0
)%
 
2.5
 %
          Total loans
8,847,376

 
8,884,581

 
6,102,021

 
6,013,183

 
5,977,037

 
(0.4
)%
 
48.0
 %
       Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
          Allowance for loan and lease losses
57,715

 
54,076

 
54,380

 
54,021

 
54,534

 
6.7
 %
 
5.8
 %
                Net loans
8,789,661

 
8,830,505

 
6,047,641

 
5,959,162

 
5,922,503

 
(0.5
)%
 
48.4
 %
     Premises and equipment
219,940

 
223,950

 
127,046

 
125,036

 
126,790

 
(1.8
)%
 
73.5
 %
     Goodwill and other intangibles
934,360

 
934,656

 
209,053

 
209,379

 
209,730

 
0.0
 %
 
345.5
 %
     Accrued interest and other assets
486,300

 
466,783

 
333,687

 
350,664

 
323,789

 
4.2
 %
 
50.2
 %
       Total Assets
$
13,842,667

 
$
13,920,167

 
$
8,898,429

 
$
8,896,923

 
$
8,761,689

 
(0.6
)%
 
58.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
     Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
       Interest-bearing demand
$
2,284,271

 
$
2,440,088

 
$
1,442,399

 
$
1,453,463

 
$
1,518,011

 
(6.4
)%
 
50.5
 %
       Savings
3,134,944

 
3,087,683

 
2,450,196

 
2,462,420

 
2,434,086

 
1.5
 %
 
28.8
 %
       Time
1,957,574

 
2,104,044

 
1,545,273

 
1,317,105

 
1,188,597

 
(7.0
)%
 
64.7
 %
          Total interest-bearing deposits
7,376,789

 
7,631,815

 
5,437,868

 
5,232,988

 
5,140,694

 
(3.3
)%
 
43.5
 %
       Noninterest-bearing
2,375,845

 
2,471,932

 
1,572,636

 
1,662,058

 
1,585,396

 
(3.9
)%
 
49.9
 %
          Total deposits
9,752,634

 
10,103,747

 
7,010,504

 
6,895,046

 
6,726,090

 
(3.5
)%
 
45.0
 %
     Federal funds purchased and securities sold
 
 
 
 
 
 
 
 
 
 
 
 
 
         under agreements to repurchase
123,452

 
88,070

 
56,732

 
72,265

 
45,532

 
40.2
 %
 
171.1
 %
     FHLB short-term borrowings
1,170,800

 
1,100,233

 
601,600

 
742,300

 
818,200

 
6.4
 %
 
43.1
 %
          Total short-term borrowings
1,294,252

 
1,188,303

 
658,332

 
814,565

 
863,732

 
8.9
 %
 
49.8
 %
     Long-term debt
570,037

 
469,423

 
169,695

 
119,654

 
119,615

 
21.4
 %
 
376.6
 %
          Total borrowed funds
1,864,289

 
1,657,726

 
828,027

 
934,219

 
983,347

 
12.5
 %
 
89.6
 %
     Accrued interest and other liabilities
190,224

 
145,757

 
119,913

 
136,994

 
137,298

 
30.5
 %
 
38.5
 %
       Total Liabilities
11,807,147

 
11,907,230

 
7,958,444

 
7,966,259

 
7,846,735

 
(0.8
)%
 
50.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
     Common stock
1,633,828

 
1,632,572

 
571,457

 
573,109

 
571,750

 
0.1
 %
 
185.8
 %
     Retained earnings
564,545

 
533,319

 
515,498

 
491,847

 
477,588

 
5.9
 %
 
18.2
 %
     Accumulated other comprehensive loss
(52,897
)
 
(43,008
)
 
(34,683
)
 
(20,390
)
 
(20,379
)
 
23.0
 %
 
159.6
 %
     Treasury stock, at cost
(109,956
)
 
(109,946
)
 
(112,287
)
 
(113,902
)
 
(114,005
)
 
0.0
 %
 
(3.6
)%
       Total Shareholders' Equity
2,035,520

 
2,012,937

 
939,985

 
930,664

 
914,954

 
1.1
 %
 
122.5
 %
       Total Liabilities and Shareholders' Equity
$
13,842,667

 
$
13,920,167

 
$
8,898,429

 
$
8,896,923

 
$
8,761,689

 
(0.6
)%
 
58.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 


6


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,
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
     Cash and due from banks
$
199,843

 
$
224,824

 
$
116,095

 
$
121,792

 
$
111,984

 
$
180,561

 
$
114,595

     Federal funds sold
0

 
786

 
0

 
0

 
0

 
262

 
0

     Interest-bearing deposits with other banks
39,873

 
28,475

 
27,073

 
25,357

 
37,199

 
31,854

 
32,812

     Investment securities
3,168,044

 
3,157,339

 
2,042,781

 
2,020,040

 
2,041,785

 
2,793,510

 
1,995,101

     Loans held for sale
15,270

 
14,462

 
9,171

 
12,572

 
12,705

 
12,990

 
10,041

     Loans and leases

 

 
 
 
 
 
 
 
 
 
 
       Commercial and industrial
2,392,229

 
2,421,244

 
1,897,726

 
1,857,546

 
1,843,677

 
2,238,878

 
1,801,899

       Lease financing
94,030

 
94,431

 
86,755

 
84,635

 
85,649

 
91,765

 
87,345

       Construction real estate
570,125

 
577,883

 
483,930

 
449,195

 
408,373

 
544,295

 
423,355

       Commercial real estate
3,887,748

 
3,923,784

 
2,495,604

 
2,487,149

 
2,497,170

 
3,440,811

 
2,435,569

       Residential real estate
918,361

 
929,667

 
468,855

 
477,454

 
489,508

 
773,941

 
492,514

       Home equity
822,834

 
825,236

 
487,073

 
494,804

 
473,988

 
712,944

 
465,465

       Installment
99,907

 
99,896

 
40,409

 
42,283

 
45,911

 
80,289

 
49,285

       Credit card
48,206

 
46,797

 
46,969

 
46,652

 
45,072

 
47,329

 
44,525

          Total loans
8,833,440

 
8,918,938

 
6,007,321

 
5,939,718

 
5,889,348

 
7,930,252

 
5,799,957

       Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
          Allowance for loan and lease losses
55,877

 
55,318

 
55,016

 
55,279

 
55,326

 
55,407

 
57,044

                Net loans
8,777,563

 
8,863,620

 
5,952,305

 
5,884,439

 
5,834,022

 
7,874,845

 
5,742,913

     Premises and equipment
222,718

 
230,475

 
126,016

 
126,310

 
128,539

 
193,424

 
130,845

     Goodwill and other intangibles
935,930

 
937,457

 
209,244

 
209,571

 
209,933

 
696,872

 
210,218

     Accrued interest and other assets
463,434

 
498,922

 
347,491

 
331,875

 
340,750

 
437,040

 
334,252

       Total Assets
$
13,822,675

 
$
13,956,360

 
$
8,830,176

 
$
8,731,956

 
$
8,716,917

 
$
12,221,358

 
$
8,570,777

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
     Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
       Interest-bearing demand
$
2,334,305

 
$
2,573,150

 
$
1,415,603

 
$
1,502,245

 
$
1,494,367

 
$
2,111,051

 
$
1,487,363

       Savings
3,149,871

 
3,196,059

 
2,450,697

 
2,518,771

 
2,494,592

 
2,934,770

 
2,377,072

       Time
2,014,936

 
2,192,196

 
1,466,440

 
1,181,396

 
1,181,406

 
1,893,200

 
1,192,850

          Total interest-bearing deposits
7,499,112

 
7,961,405

 
5,332,740

 
5,202,412

 
5,170,365

 
6,939,021

 
5,057,285

       Noninterest-bearing
2,388,976

 
2,421,230

 
1,570,572

 
1,637,228

 
1,510,032

 
2,129,924

 
1,507,748

          Total deposits
9,888,088

 
10,382,635

 
6,903,312

 
6,839,640

 
6,680,397

 
9,068,945

 
6,565,033

     Federal funds purchased and securities sold
 
 
 
 
 
 
 
 
 
 
 
 
 
          under agreements to repurchase
112,308

 
97,708

 
72,865

 
57,131

 
71,315

 
94,438

 
74,024

     FHLB short-term borrowings
1,076,106

 
818,909

 
667,641

 
660,859

 
808,842

 
855,715

 
794,211

          Total short-term borrowings
1,188,414

 
916,617

 
740,506

 
717,990

 
880,157

 
950,153

 
868,235

     Long-term debt
560,001

 
491,407

 
126,342

 
124,221

 
119,661

 
394,172

 
119,639

       Total borrowed funds
1,748,415

 
1,408,024

 
866,848

 
842,211

 
999,818

 
1,344,325

 
987,874

     Accrued interest and other liabilities
164,772

 
165,608

 
130,542

 
129,911

 
128,645

 
153,766

 
128,110

       Total Liabilities
11,801,275

 
11,956,267

 
7,900,702

 
7,811,762

 
7,808,860

 
10,567,036

 
7,681,017

 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
     Common stock
1,633,129

 
1,632,569

 
572,915

 
572,392

 
570,216

 
1,283,421

 
569,643

     Retained earnings
542,835

 
517,548

 
503,140

 
483,554

 
470,591

 
521,320

 
456,552

     Accumulated other comprehensive loss
(44,505
)
 
(39,117
)
 
(33,285
)
 
(21,740
)
 
(19,940
)
 
(39,010
)
 
(23,613
)
     Treasury stock, at cost
(110,059
)
 
(110,907
)
 
(113,296
)
 
(114,012
)
 
(112,810
)
 
(111,409
)
 
(112,822
)
       Total Shareholders' Equity
2,021,400

 
2,000,093

 
929,474

 
920,194

 
908,057

 
1,654,322

 
889,760

       Total Liabilities and Shareholders' Equity
$
13,822,675

 
$
13,956,360

 
$
8,830,176

 
$
8,731,956

 
$
8,716,917

 
$
12,221,358

 
$
8,570,777

 
 
 
 
 
 
 
 
 
 
 
 
 
 


7


FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 
 
 
 
 
 
 
 Quarterly Averages
 
Year-to-Date Averages
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
September 30, 2018
 
September 30, 2017
 
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
Earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment securities
 
$
3,168,044

 
3.21
%
 
$
3,157,339

 
3.16
%
 
$
2,041,785

 
2.85
%
 
$
2,793,510

 
3.15
%
 
$
1,995,101

 
2.79
%
      Interest-bearing deposits with other banks
 
39,873

 
2.14
%
 
29,261

 
2.43
%
 
37,199

 
1.28
%
 
32,116

 
2.08
%
 
32,812

 
1.05
%
    Gross loans (1)
 
8,848,710

 
5.53
%
 
8,933,400

 
5.49
%
 
5,910,985

 
4.71
%
 
7,943,737

 
5.40
%
 
5,820,248

 
4.65
%
       Total earning assets
 
12,056,627

 
4.91
%
 
12,120,000

 
4.88
%
 
7,989,969

 
4.22
%
 
10,769,363

 
4.80
%
 
7,848,161

 
4.17
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonearning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Allowance for loan and lease losses
 
(55,877
)
 
 
 
(55,318
)
 
 
 
(55,326
)
 
 
 
(55,407
)
 
 
 
(57,044
)
 
 
    Cash and due from banks
 
199,843

 
 
 
224,824

 
 
 
111,984

 
 
 
180,561

 
 
 
114,595

 
 
    Accrued interest and other assets
 
1,622,082

 
 
 
1,666,854

 
 
 
670,290

 
 
 
1,326,841

 
 
 
665,065

 
 
       Total assets
 
$
13,822,675

 
 
 
$
13,956,360

 
 
 
$
8,716,917

 
 
 
$
12,221,358

 
 
 
$
8,570,777

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Interest-bearing demand
 
$
2,334,305

 
0.34
%
 
$
2,573,150

 
0.36
%
 
$
1,494,367

 
0.33
%
 
$
2,111,051

 
0.36
%
 
$
1,487,363

 
0.27
%
      Savings
 
3,149,871

 
0.59
%
 
3,196,059

 
0.54
%
 
2,494,592

 
0.82
%
 
2,934,770

 
0.58
%
 
2,377,072

 
0.67
%
      Time
 
2,014,936

 
1.58
%
 
2,192,196

 
1.50
%
 
1,181,406

 
1.32
%
 
1,893,200

 
1.51
%
 
1,192,850

 
1.24
%
    Total interest-bearing deposits
 
7,499,112

 
0.78
%
 
7,961,405

 
0.75
%
 
5,170,365

 
0.79
%
 
6,939,021

 
0.77
%
 
5,057,285

 
0.69
%
    Borrowed funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Short-term borrowings
 
1,188,414

 
2.02
%
 
916,617

 
1.81
%
 
880,157

 
1.16
%
 
950,153

 
1.81
%
 
868,235

 
0.93
%
      Long-term debt
 
560,001

 
3.55
%
 
491,407

 
3.65
%
 
119,661

 
5.10
%
 
394,172

 
3.75
%
 
119,639

 
5.16
%
        Total borrowed funds
 
1,748,415

 
2.51
%
 
1,408,024

 
2.45
%
 
999,818

 
1.63
%
 
1,344,325

 
2.38
%
 
987,874

 
1.44
%
       Total interest-bearing liabilities
 
9,247,527

 
1.10
%
 
9,369,429

 
1.00
%
 
6,170,183

 
0.93
%
 
8,283,346

 
1.03
%
 
6,045,159

 
0.81
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Noninterest-bearing demand deposits
 
2,388,976

 
 
 
2,421,230

 
 
 
1,510,032

 
 
 
2,129,924

 
 
 
1,507,748

 
 
    Other liabilities
 
164,772

 
 
 
165,608

 
 
 
128,645

 
 
 
153,766

 
 
 
128,110

 
 
    Shareholders' equity
 
2,021,400

 
 
 
2,000,093

 
 
 
908,057

 
 
 
1,654,322

 
 
 
889,760

 
 
       Total liabilities & shareholders' equity
 
$
13,822,675

 
 
 
$
13,956,360

 
 
 
$
8,716,917

 
 
 
$
12,221,358

 
 
 
$
8,570,777

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
123,485

 
 
 
$
123,979

 
 
 
$
70,479

 
 
 
$
323,276

 

 
$
207,931

 

Net interest spread
 
 
 
3.81
%
 
 
 
3.88
%
 
 
 
3.29
%
 
 
 
3.77
%
 
 
 
3.36
%
Net interest margin
 
 
 
4.06
%
 
 
 
4.10
%
 
 
 
3.50
%
 
 
 
4.01
%
 
 
 
3.54
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax equivalent adjustment
 
 
 
0.06
%
 
 
 
0.05
%
 
 
 
0.07
%
 
 
 
0.05
%
 
 
 
0.07
%
Net interest margin (fully tax equivalent)
 
 
 
4.12
%
 
 
 
4.15
%
 
 
 
3.57
%
 
 
 
4.06
%
 
 
 
3.61
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Loans held for sale, nonaccrual loans, and indemnification asset are included in gross loans.
 
 

8

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
 
$
332

 
$
364

 
$
696

 
$
1,817

 
$
9,104

 
$
10,921

 
$
5,324

 
$
18,820

 
$
24,144

    Interest-bearing deposits with other banks
 
(21
)
 
59

 
38

 
81

 
14

 
95

 
253

 
(11
)
 
242

    Gross loans (2)
 
934

 
173

 
1,107

 
12,319

 
40,967

 
53,286

 
32,329

 
85,703

 
118,032

       Total earning assets
 
1,245

 
596

 
1,841

 
14,217

 
50,085

 
64,302

 
37,906

 
104,512

 
142,418

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Total interest-bearing deposits
 
$
613

 
$
(735
)
 
$
(122
)
 
$
(219
)
 
$
4,556

 
$
4,337

 
$
3,042

 
$
10,783

 
$
13,825

    Borrowed funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Short-term borrowings
 
485

 
1,435

 
1,920

 
1,916

 
1,570

 
3,486

 
5,690

 
1,108

 
6,798

    Long-term debt
 
(125
)
 
662

 
537

 
(467
)
 
3,940

 
3,473

 
(1,257
)
 
7,707

 
6,450

       Total borrowed funds
 
360

 
2,097

 
2,457

 
1,449

 
5,510

 
6,959

 
4,433

 
8,815

 
13,248

       Total interest-bearing liabilities
 
973

 
1,362

 
2,335

 
1,230

 
10,066

 
11,296

 
7,475

 
19,598

 
27,073

          Net interest income (1)
 
$
272

 
$
(766
)
 
$
(494
)
 
$
12,987

 
$
40,019

 
$
53,006

 
$
30,431

 
$
84,914

 
$
115,345

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Not tax equivalent.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Loans held for sale, nonaccrual loans, and indemnification asset are included in gross loans.
 
 
 
 



9

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,
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
54,076

 
$
54,380

 
$
54,021

 
$
54,534

 
$
54,873

 
$
54,021

 
$
57,961

  Provision for loan and lease losses
3,238

 
3,735

 
2,303

 
(205
)
 
2,953

 
9,276

 
3,787

  Gross charge-offs
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
232

 
4,356

 
885

 
1,264

 
4,122

 
5,473

 
8,930

    Construction real estate
0

 
0

 
0

 
1

 
0

 
0

 
0

    Commercial real estate
902

 
78

 
2,176

 
10

 
58

 
3,156

 
1,028

    Residential real estate
145

 
101

 
96

 
128

 
23

 
342

 
307

    Home equity
351

 
385

 
242

 
278

 
71

 
978

 
635

    Installment
43

 
218

 
16

 
26

 
24

 
277

 
199

    Credit card
390

 
684

 
254

 
209

 
201

 
1,328

 
648

      Total gross charge-offs
2,063

 
5,822

 
3,669

 
1,916

 
4,499

 
11,554

 
11,747

  Recoveries
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
627

 
518

 
436

 
370

 
325

 
1,581

 
1,280

    Lease financing
0

 
1

 
0

 
0

 
0

 
1

 
1

    Construction real estate
146

 
0

 
0

 
0

 
0

 
146

 
89

    Commercial real estate
786

 
887

 
752

 
480

 
585

 
2,425

 
2,239

    Residential real estate
71

 
70

 
26

 
77

 
70

 
167

 
138

    Home equity
419

 
187

 
429

 
589

 
110

 
1,035

 
438

    Installment
351

 
82

 
48

 
46

 
74

 
481

 
188

    Credit card
64

 
38

 
34

 
46

 
43

 
136

 
160

      Total recoveries
2,464

 
1,783

 
1,725

 
1,608

 
1,207

 
5,972

 
4,533

  Total net charge-offs
(401
)
 
4,039

 
1,944

 
308

 
3,292

 
5,582

 
7,214

Ending allowance for loan and lease losses
$
57,715

 
$
54,076

 
$
54,380

 
$
54,021

 
$
54,534

 
$
57,715

 
$
54,534

 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
 
 
 
 
 
 
 
 
 
 
  Commercial and industrial
(0.07
)%
 
0.64
 %
 
0.10
 %
 
0.19
 %
 
0.82
 %
 
0.23
 %
 
0.57
 %
  Lease financing
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
  Construction real estate
(0.10
)%
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
(0.04
)%
 
(0.03
)%
  Commercial real estate
0.01
 %
 
(0.08
)%
 
0.23
 %
 
(0.07
)%
 
(0.08
)%
 
0.03
 %
 
(0.07
)%
  Residential real estate
0.03
 %
 
0.01
 %
 
0.06
 %
 
0.04
 %
 
(0.04
)%
 
0.03
 %
 
0.05
 %
  Home equity
(0.03
)%
 
0.10
 %
 
(0.16
)%
 
(0.25
)%
 
(0.03
)%
 
(0.01
)%
 
0.06
 %
  Installment
(1.22
)%
 
0.55
 %
 
(0.32
)%
 
(0.19
)%
 
(0.43
)%
 
(0.34
)%
 
0.03
 %
  Credit card
2.68
 %
 
5.54
 %
 
1.90
 %
 
1.39
 %
 
1.39
 %
 
3.37
 %
 
1.47
 %
     Total net charge-offs
(0.02
)%
 
0.18
 %
 
0.13
 %
 
0.02
 %
 
0.22
 %
 
0.09
 %
 
0.17
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
 
 
  Nonaccrual loans (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
$
4,310

 
$
3,448

 
$
6,275

 
$
5,229

 
$
9,026

 
$
4,310

 
$
9,026

    Lease financing
0

 
0

 
0

 
82

 
87

 
0

 
87

    Construction real estate
10

 
24

 
26

 
29

 
824

 
10

 
824

    Commercial real estate
20,338

 
21,593

 
16,878

 
10,616

 
12,244

 
20,338

 
12,244

    Residential real estate
11,365

 
9,278

 
3,324

 
4,140

 
4,333

 
11,365

 
4,333

    Home equity
6,018

 
5,820

 
3,484

 
3,743

 
3,364

 
6,018

 
3,364

    Installment
327

 
299

 
296

 
243

 
240

 
327

 
240

      Nonaccrual loans
42,368

 
40,462

 
30,283

 
24,082

 
30,118

 
42,368

 
30,118

  Accruing troubled debt restructurings (TDRs)
20,313

 
21,839

 
14,943

 
17,545

 
19,692

 
20,313

 
19,692

     Total nonperforming loans
62,681

 
62,301

 
45,226

 
41,627

 
49,810

 
62,681

 
49,810

  Other real estate owned (OREO)
1,918

 
1,853

 
1,065

 
2,781

 
3,116

 
1,918

 
3,116

     Total nonperforming assets
64,599

 
64,154

 
46,291

 
44,408

 
52,926

 
64,599

 
52,926

  Accruing loans past due 90 days or more
144

 
327

 
529

 
61

 
84

 
144

 
84

     Total underperforming assets
$
64,743

 
$
64,481

 
$
46,820

 
$
44,469

 
$
53,010


$
64,743

 
$
53,010

Total classified assets
$
138,868

 
$
139,317

 
$
87,577

 
$
87,293

 
$
94,320

 
$
138,868

 
$
94,320

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Nonaccrual loans
136.22
 %
 
133.65
 %
 
179.57
 %
 
224.32
 %
 
181.07
 %
 
136.22
 %
 
181.07
 %
     Nonperforming loans
92.08
 %
 
86.80
 %
 
120.24
 %
 
129.77
 %
 
109.48
 %
 
92.08
 %
 
109.48
 %
     Total ending loans
0.65
 %
 
0.61
 %
 
0.89
 %
 
0.90
 %
 
0.91
 %
 
0.65
 %
 
0.91
 %
Nonperforming loans to total loans
0.71
 %
 
0.70
 %
 
0.74
 %
 
0.69
 %
 
0.83
 %
 
0.71
 %
 
0.83
 %
Nonperforming assets to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Ending loans, plus OREO
0.73
 %
 
0.72
 %
 
0.76
 %
 
0.74
 %
 
0.89
 %
 
0.73
 %
 
0.89
 %
     Total assets
0.47
 %
 
0.46
 %
 
0.52
 %
 
0.50
 %
 
0.60
 %
 
0.47
 %
 
0.60
 %
Nonperforming assets, excluding accruing TDRs to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Ending loans, plus OREO
0.50
 %
 
0.48
 %
 
0.51
 %
 
0.45
 %
 
0.56
 %
 
0.50
 %
 
0.56
 %
     Total assets
0.32
 %
 
0.30
 %
 
0.35
 %
 
0.30
 %
 
0.38
 %
 
0.32
 %
 
0.38
 %
Classified assets to total assets
1.00
 %
 
1.00
 %
 
0.98
 %
 
0.98
 %
 
1.08
 %
 
1.00
 %
 
1.08
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Nonaccrual loans include nonaccrual TDRs of $4.7 million, $5.9 million, $6.0 million, $6.4 million, and $9.1 million, as of September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively.
 
 
 
 
 


10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Nine months ended,
 
Sep. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Sep. 30,
 
Sep. 30,
 
2018
 
2018
 
2018
 
2017
 
2017
 
2018
 
2017
PER COMMON SHARE
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Price
 
 
 
 
 
 
 
 
 
 
 
 
 
  High
$
32.35

 
$
33.55

 
$
29.35

 
$
29.15

 
$
28.50

 
$
33.55

 
$
28.95

  Low
$
29.40

 
$
28.10

 
$
26.40

 
$
25.30

 
$
23.10

 
$
26.40

 
$
23.10

  Close
$
29.70

 
$
30.65

 
$
29.35

 
$
26.35

 
$
26.15

 
$
29.70

 
$
26.15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shares outstanding - basic
97,411,201

 
97,347,533

 
61,654,686

 
61,595,629

 
61,577,619

 
85,602,116

 
61,507,160

Average shares outstanding - diluted
98,484,228

 
98,432,072

 
62,180,744

 
62,131,840

 
62,189,637

 
86,639,927

 
62,185,874

Ending shares outstanding
97,914,526

 
97,904,897

 
62,213,823

 
62,069,087

 
62,061,465

 
97,914,526

 
62,061,465

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders' equity
$
2,035,520

 
$
2,012,937

 
$
939,985

 
$
930,664

 
$
914,954

 
$
2,035,520

 
$
914,954

 
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL
Preliminary
 
 
 
 
 
 
 
 
 
Preliminary
 
 
Common equity tier 1 capital
$
1,177,630

 
$
1,142,718

 
$
779,491

 
$
755,735

 
$
746,730

 
$
1,177,630

 
$
746,730

Common equity tier 1 capital ratio
11.52
%
 
11.15
%
 
10.77
%
 
10.63
%
 
10.53
%
 
11.52
%
 
10.53
%
Tier 1 capital
$
1,219,383

 
$
1,184,471

 
$
779,595

 
$
755,839

 
$
746,834

 
$
1,219,383

 
$
746,834

Tier 1 ratio
11.93
%
 
11.55
%
 
10.77
%
 
10.63
%
 
10.53
%
 
11.93
%
 
10.53
%
Total capital
$
1,407,252

 
$
1,369,231

 
$
953,243

 
$
929,148

 
$
920,642

 
$
1,407,252

 
$
920,642

Total capital ratio
13.77
%
 
13.36
%
 
13.17
%
 
13.07
%
 
12.98
%
 
13.77
%
 
12.98
%
Total capital in excess of minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
  requirement
$
397,783

 
$
356,930

 
$
238,221

 
$
271,600

 
$
264,751

 
$
397,783

 
$
264,751

Total risk-weighted assets
$
10,222,466

 
$
10,251,147

 
$
7,240,731

 
$
7,108,629

 
$
7,090,714

 
$
10,222,466

 
$
7,090,714

Leverage ratio
9.41
%
 
9.06
%
 
9.00
%
 
8.84
%
 
8.74
%
 
9.41
%
 
8.74
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending shareholders' equity to ending assets
14.70
%
 
14.46
%
 
10.56
%
 
10.46
%
 
10.44
%
 
14.70
%
 
10.44
%
Ending tangible shareholders' equity to ending tangible assets
8.53
%
 
8.30
%
 
8.41
%
 
8.30
%
 
8.25
%
 
8.53
%
 
8.25
%
Average shareholders' equity to average assets
14.62
%
 
14.33
%
 
10.53
%
 
10.54
%
 
10.42
%
 
13.54
%
 
10.38
%
Average tangible shareholders' equity to average tangible assets
8.42
%
 
8.16
%
 
8.35
%
 
8.34
%
 
8.21
%
 
8.31
%
 
8.13
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 

11