EX-99.1 2 a8k4q18earningsreleaseex991.htm EXHIBIT 99.1 Document
Exhibit 99.1
yellowbara01.jpgffbclogoa01.jpg                                        
First Financial Bancorp Announces Fourth Quarter and Full Year 2018 Results and 10% Dividend Increase

Cincinnati, Ohio - January 23, 2019 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the fourth quarter and full year 2018.

For the three months ended December 31, 2018, the Company reported net income of $55.0 million, or $0.56 per diluted common share. These results compare to net income of $50.7 million, or $0.51 per diluted common share, for the third quarter of 2018 and $24.8 million, or $0.40 per diluted common share, for the fourth quarter of 2017. Net income was negatively impacted by the recognition of $7.5 million of efficiency and merger related costs, which more than offset $1.6 million of gains from the redemption of off balance sheet securitizations, reducing earnings per diluted common share by $0.05 on a net basis. For the twelve months ended December 31, 2018, First Financial had earnings per diluted common share of $1.93 compared to $1.56 for the same period in 2017.

Return on average assets for the fourth quarter of 2018 was 1.59% while return on average tangible common equity was 19.63%. These compare to a return on average assets of 1.45% and return on average tangible common equity of 18.52% in the third quarter of 2018 and a return on average assets of 1.13% and a return on average tangible common equity of 13.85% in the fourth quarter of 2017.

Fourth quarter 2018 highlights include:

•
After adjustments(1) for merger related and nonrecurring items:
◦
Net income of $0.61 per diluted common share
◦
1.72% return on average assets
◦
21.29% return on average tangible common equity

•
Net interest margin of 4.21% on a fully tax equivalent basis(1) 
◦
9 basis point expansion from the linked quarter driven by higher asset yields and loan fees which outpaced increased funding costs

•
Noninterest expenses of $83.4 million, or $75.9 million as adjusted(1)
◦
Efficiency ratio of 53.6% for the fourth quarter; 49.3% as adjusted(1) 

•
Stable loan balances
◦
Strongest origination quarter of 2018
◦
10% linked quarter increase in loan origination activity offset by elevated ICRE payoffs

•
Annualized quarterly increase in average deposit balances of 16%
◦
Deposit growth driven by higher noninterest bearing deposits, money market accounts and brokered CD's
    
•
Classified assets declined 5%; annualized net charge-offs increased to 29 basis points as a percentage of average loans for the quarter and were 15 basis points for the full year 2018
____________________________________________________________________________________________(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

Archie Brown, President and Chief Executive Officer, commented, “Fourth quarter results were very strong, and we remain pleased with the operational performance of the Company. Revenue growth and increased operating leverage led to adjusted(1) earnings per share of $0.61 and substantial returns on assets and average tangible common equity while net interest margin increased 9 basis points.”
Mr. Brown continued, “Fourth quarter core banking trends were positive and loan originations were stronger than they have been all year, however elevated payoffs, particularly in ICRE (investment commercial real estate), led to a slight decline in overall loan balances. In addition to positive loan origination trends, we were particularly pleased with our ability to grow deposits during the the quarter while maintaining a pricing discipline that benefits both our clients and our shareholders.”

Mr. Brown concluded, “2018 was a year of significant change for First Financial. We are highly encouraged by the way in which the Company has come together culturally and performed financially. Successfully completing a transformational merger while producing high level returns reflects the hard work of our associates and dedication to serving the needs of our clients and shareholders. We remain confident in our ability to sustain these results and our outlook for the future continues to be very optimistic."
First Financial's Board of Directors also approved a 10% increase in the quarterly dividend to $0.22 per share, payable on March 15, 2019 to shareholders of record as of March 1, 2019.

Full detail of the Company’s fourth quarter and full year 2018 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 Thursday, January 24, 2019 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 10127430. 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 our Form 10-K for the year ended December 31, 2017, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.

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

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of December 31, 2018, the Company had $14.0 billion in assets, $8.8 billion in loans, $10.1 billion in deposits and $2.1 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 $2.6 billion in assets under management as of December 31, 2018. The Company’s primary operating markets are located in Ohio, Indiana and Kentucky where it operated 159 banking centers as of December 31, 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
December 31, 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,
 
Twelve months ended,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Dec. 31,
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
RESULTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
55,014

 
$
50,657

 
$
36,418

 
$
30,506

 
$
24,811

 
$
172,595

 
$
96,787

Net earnings per share - basic
$
0.56

 
$
0.52

 
$
0.37

 
$
0.49

 
$
0.40

 
$
1.95

 
$
1.57

Net earnings per share - diluted
$
0.56

 
$
0.51

 
$
0.37

 
$
0.49

 
$
0.40

 
$
1.93

 
$
1.56

Dividends declared per share
$
0.20

 
$
0.20

 
$
0.19

 
$
0.19

 
$
0.17

 
$
0.78

 
$
0.68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
KEY FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.59
%
 
1.45
 %
 
1.05
%
 
1.40
%
 
1.13
%
 
1.37
%
 
1.12
%
Return on average shareholders' equity
10.68
%
 
9.94
 %
 
7.36
%
 
13.31
%
 
10.70
%
 
9.85
%
 
10.78
%
Return on average tangible shareholders' equity
19.63
%
 
18.52
 %
 
13.75
%
 
17.18
%
 
13.85
%
 
17.32
%
 
14.08
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
4.16
%
 
4.06
 %
 
4.10
%
 
3.80
%
 
3.75
%
 
4.05
%
 
3.59
%
Net interest margin (fully tax equivalent) (1)
4.21
%
 
4.12
 %
 
4.15
%
 
3.84
%
 
3.82
%
 
4.10
%
 
3.66
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending shareholders' equity as a percent of ending assets
14.86
%
 
14.70
 %
 
14.46
%
 
10.56
%
 
10.46
%
 
14.86
%
 
10.46
%
Ending tangible shareholders' equity as a percent of:
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending tangible assets
8.79
%
 
8.53
 %
 
8.30
%
 
8.41
%
 
8.30
%
 
8.79
%
 
8.30
%
Risk-weighted assets
11.20
%
 
10.77
 %
 
10.52
%
 
10.09
%
 
10.15
%
 
11.20
%
 
10.15
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity as a percent of average assets
14.84
%
 
14.62
 %
 
14.33
%
 
10.53
%
 
10.54
%
 
13.89
%
 
10.42
%
Average tangible shareholders' equity as a percent of
 
 
 
 
 
 
 
 
 
 
 
 
 
    average tangible assets
8.66
%
 
8.42
 %
 
8.16
%
 
8.35
%
 
8.34
%
 
8.40
%
 
8.18
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
$
21.23

 
$
20.79

 
$
20.56

 
$
15.11

 
$
14.99

 
$
21.23

 
$
14.99

Tangible book value per share
$
11.72

 
$
11.25

 
$
11.01

 
$
11.75

 
$
11.62

 
$
11.72

 
$
11.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 ratio (2)
11.87
%
 
11.52
 %
 
11.15
%
 
10.77
%
 
10.63
%
 
11.87
%
 
10.63
%
Tier 1 ratio (2)
12.28
%
 
11.93
 %
 
11.55
%
 
10.77
%
 
10.63
%
 
12.28
%
 
10.63
%
Total capital ratio (2)
14.10
%
 
13.77
 %
 
13.36
%
 
13.17
%
 
13.07
%
 
14.10
%
 
13.07
%
Leverage ratio (2)
9.71
%
 
9.41
 %
 
9.06
%
 
9.00
%
 
8.84
%
 
9.71
%
 
8.84
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCE SHEET ITEMS
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans (3)
$
8,766,302

 
$
8,848,710

 
$
8,933,400

 
$
6,016,492

 
$
5,952,290

 
$
8,150,698

 
$
5,845,863

FDIC indemnification asset
—

 
—

 
—

 
1,502

 
7,413

 
370

 
9,535

Investment securities
3,204,758

 
3,168,044

 
3,157,339

 
2,042,781

 
2,020,040

 
2,897,167

 
2,001,387

Interest-bearing deposits with other banks
32,013

 
39,873

 
29,261

 
27,073

 
25,357

 
32,090

 
30,933

  Total earning assets
$
12,003,073

 
$
12,056,627

 
$
12,120,000

 
$
8,087,848

 
$
8,005,100

 
$
11,080,325

 
$
7,887,718

Total assets
$
13,768,958

 
$
13,822,675

 
$
13,956,360

 
$
8,830,176

 
$
8,731,956

 
$
12,611,438

 
$
8,611,403

Noninterest-bearing deposits
$
2,476,773

 
$
2,388,976

 
$
2,421,230

 
$
1,570,572

 
$
1,637,228

 
$
2,217,349

 
$
1,540,384

Interest-bearing deposits
7,573,069

 
7,499,112

 
7,961,405

 
5,332,740

 
5,202,412

 
7,098,836

 
5,093,865

  Total deposits
$
10,049,842

 
$
9,888,088

 
$
10,382,635

 
$
6,903,312

 
$
6,839,640

 
$
9,316,185

 
$
6,634,249

Borrowings
$
1,509,642

 
$
1,748,415

 
$
1,408,024

 
$
866,848

 
$
842,211

 
$
1,385,994

 
$
951,159

Shareholders' equity
$
2,042,884

 
$
2,021,400

 
$
2,000,093

 
$
929,474

 
$
920,194

 
$
1,752,261

 
$
897,431

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
Allowance to ending loans
0.64
%
 
0.65
 %
 
0.61
%
 
0.89
%
 
0.90
%
 
0.64
%
 
0.90
%
Allowance to nonaccrual loans
79.97
%
 
136.22
 %
 
133.65
%
 
179.57
%
 
224.32
%
 
79.97
%
 
224.32
%
Allowance to nonperforming loans
65.13
%
 
92.08
 %
 
86.80
%
 
120.24
%
 
129.77
%
 
65.13
%
 
129.77
%
Nonperforming loans to total loans
0.98
%
 
0.71
 %
 
0.70
%
 
0.74
%
 
0.69
%
 
0.98
%
 
0.69
%
Nonperforming assets to ending loans, plus OREO
1.00
%
 
0.73
 %
 
0.72
%
 
0.76
%
 
0.74
%
 
1.00
%
 
0.74
%
Nonperforming assets to total assets
0.63
%
 
0.47
 %
 
0.46
%
 
0.52
%
 
0.50
%
 
0.63
%
 
0.50
%
Classified assets to total assets
0.94
%
 
1.00
 %
 
1.00
%
 
0.98
%
 
0.98
%
 
0.94
%
 
0.98
%
Net charge-offs to average loans (annualized)
0.29
%
 
(0.02
)%
 
0.18
%
 
0.13
%
 
0.02
%
 
0.15
%
 
0.13
%

(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) December 31, 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,
 
Twelve months ended,
 
Dec. 31,
 
Dec. 31,
 
2018
 
2017
 
% Change
 
2018
 
2017
 
% Change
Interest income
 
 
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
126,580

 
$
74,347

 
70.3
 %
 
$
447,187

 
$
280,111

 
59.6
 %
  Investment securities

 
 
 
 
 
 
 
 
 
 
     Taxable
22,761

 
13,212

 
72.3
 %
 
79,076

 
50,568

 
56.4
 %
     Tax-exempt
3,896

 
1,571

 
148.0
 %
 
13,428

 
5,918

 
126.9
 %
        Total investment securities interest
26,657

 
14,783

 
80.3
 %
 
92,504

 
56,486

 
63.8
 %
  Other earning assets
192

 
(592
)
 
132.4
 %
 
691

 
(3,524
)
 
119.6
 %
       Total interest income
153,429

 
88,538

 
73.3
 %
 
540,382

 
333,073

 
62.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
  Deposits
17,198

 
9,243

 
86.1
 %
 
56,962

 
35,182

 
61.9
 %
  Short-term borrowings
5,186

 
2,144

 
141.9
 %
 
18,033

 
8,193

 
120.1
 %
  Long-term borrowings
5,086

 
1,537

 
230.9
 %
 
16,152

 
6,153

 
162.5
 %
      Total interest expense
27,470

 
12,924

 
112.6
 %
 
91,147

 
49,528

 
84.0
 %
      Net interest income
125,959

 
75,614

 
66.6
 %
 
449,235

 
283,545

 
58.4
 %
  Provision for loan and lease losses
5,310

 
(205
)
 
N/M

 
14,586

 
3,582

 
307.2
 %
      Net interest income after provision for loan and lease losses
120,649

 
75,819

 
59.1
 %
 
434,649

 
279,963

 
55.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
10,185

 
5,190

 
96.2
 %
 
35,108

 
19,775

 
77.5
 %
  Trust and wealth management fees
3,703

 
3,597

 
2.9
 %
 
15,082

 
14,073

 
7.2
 %
  Bankcard income
6,247

 
3,390

 
84.3
 %
 
20,245

 
13,298

 
52.2
 %
  Client derivative fees
1,433

 
2,047

 
(30.0
)%
 
7,682

 
6,418

 
19.7
 %
  Net gains from sales of loans
1,428

 
1,171

 
21.9
 %
 
6,071

 
5,169

 
17.5
 %
  Net gains (losses) on sale of investment securities
36

 
19

 
89.5
 %
 
(161
)
 
1,649

 
(109.8
)%
  Other
6,472

 
2,968

 
118.1
 %
 
19,355

 
15,760

 
22.8
 %
      Total noninterest income
29,504

 
18,382

 
60.5
 %
 
103,382

 
76,142

 
35.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
51,505

 
35,439

 
45.3
 %
 
188,990

 
132,560

 
42.6
 %
  Net occupancy
6,322

 
4,252

 
48.7
 %
 
24,215

 
17,397

 
39.2
 %
  Furniture and equipment
3,498

 
1,969

 
77.7
 %
 
14,908

 
8,443

 
76.6
 %
  Data processing
5,599

 
3,768

 
48.6
 %
 
28,077

 
14,022

 
100.2
 %
  Marketing
1,651

 
1,060

 
55.8
 %
 
7,598

 
3,201

 
137.4
 %
  Communication
805

 
474

 
69.8
 %
 
3,167

 
1,819

 
74.1
 %
  Professional services
1,794

 
9,766

 
(81.6
)%
 
12,272

 
15,023

 
(18.3
)%
  State intangible tax
1,086

 
492

 
120.7
 %
 
4,152

 
2,655

 
56.4
 %
  FDIC assessments
1,018

 
943

 
8.0
 %
 
3,969

 
3,944

 
0.6
 %
  Loss (gain) - other real estate owned
41

 
219

 
(81.3
)%
 
373

 
642

 
(41.9
)%
  Other
10,033

 
24,516

 
(59.1
)%
 
36,089

 
40,236

 
(10.3
)%
      Total noninterest expenses
83,352

 
82,898

 
0.5
 %
 
323,810

 
239,942

 
35.0
 %
Income before income taxes
66,801

 
11,303

 
491.0
 %
 
214,221

 
116,163

 
84.4
 %
Income tax expense
11,787

 
(13,508
)
 
(187.3
)%
 
41,626

 
19,376

 
114.8
 %
      Net income
$
55,014

 
$
24,811

 
121.7
 %
 
$
172,595

 
$
96,787

 
78.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
ADDITIONAL DATA
 
 
 
 
 
 
 
 
 
 
 
Net earnings per share - basic
$
0.56

 
$
0.40

 
 
 
$
1.95

 
$
1.57

 
 
Net earnings per share - diluted
$
0.56

 
$
0.40

 
 
 
$
1.93

 
$
1.56

 
 
Dividends declared per share
$
0.20

 
$
0.17

 
 
 
$
0.78

 
$
0.68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.59
%
 
1.13
%
 
 
 
1.37
%
 
1.12
%
 
 
Return on average shareholders' equity
10.68
%
 
10.70
%
 
 
 
9.85
%
 
10.78
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
153,429

 
$
88,538

 
73.3
 %
 
$
540,382

 
$
333,073

 
62.2
 %
Tax equivalent adjustment
1,442

 
1,387

 
4.0
 %
 
5,147

 
5,259

 
(2.1
)%
   Interest income - tax equivalent
154,871

 
89,925

 
72.2
 %
 
545,529

 
338,332

 
61.2
 %
Interest expense
27,470

 
12,924

 
112.6
 %
 
91,147

 
49,528

 
84.0
 %
   Net interest income - tax equivalent
$
127,401

 
$
77,001

 
65.5
 %
 
$
454,382

 
$
288,804

 
57.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
4.16
%
 
3.75
%
 
 
 
4.05
%
 
3.59
%
 
 
Net interest margin (fully tax equivalent) (1)
4.21
%
 
3.82
%
 
 
 
4.10
%
 
3.66
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Full-time equivalent employees
2,073

 
1,304

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
Fourth
 
Third
 
Second
 
First
 
Full
 
% Change
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Year
 
Linked Qtr.
Interest income
 
 
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
126,580

 
$
123,397

 
$
122,290

 
$
74,920

 
$
447,187

 
2.6
 %
  Investment securities
 
 
 
 
 
 
 
 
 
 
 
     Taxable
22,761

 
21,801

 
20,844

 
13,670

 
79,076

 
4.4
 %
     Tax-exempt
3,896

 
3,807

 
4,068

 
1,657

 
13,428

 
2.3
 %
        Total investment securities interest
26,657

 
25,608

 
24,912

 
15,327

 
92,504

 
4.1
 %
  Other earning assets
192

 
215

 
177

 
107

 
691

 
(10.7
)%
       Total interest income
153,429

 
149,220

 
147,379

 
90,354

 
540,382

 
2.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
  Deposits
17,198

 
14,672

 
14,794

 
10,298

 
56,962

 
17.2
 %
  Short-term borrowings
5,186

 
6,052

 
4,132

 
2,663

 
18,033

 
(14.3
)%
  Long-term borrowings
5,086

 
5,011

 
4,474

 
1,581

 
16,152

 
1.5
 %
      Total interest expense
27,470

 
25,735

 
23,400

 
14,542

 
91,147

 
6.7
 %
      Net interest income
125,959

 
123,485

 
123,979

 
75,812

 
449,235

 
2.0
 %
  Provision for loan and lease losses
5,310

 
3,238

 
3,735

 
2,303

 
14,586

 
64.0
 %
      Net interest income after provision for loan and lease losses
120,649

 
120,247

 
120,244

 
73,509

 
434,649

 
0.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
10,185

 
10,316

 
9,568

 
5,039

 
35,108

 
(1.3
)%
  Trust and wealth management fees
3,703

 
3,728

 
3,697

 
3,954

 
15,082

 
(0.7
)%
  Bankcard income
6,247

 
5,261

 
5,343

 
3,394

 
20,245

 
18.7
 %
  Client derivative fees
1,433

 
3,029

 
1,463

 
1,757

 
7,682

 
(52.7
)%
  Net gains from sales of loans
1,428

 
1,739

 
2,316

 
588

 
6,071

 
(17.9
)%
  Net gains (losses) on sale of investment securities
36

 
(167
)
 
(30
)
 
0

 
(161
)
 
121.6
 %
  Other
6,472

 
4,778

 
5,899

 
2,206

 
19,355

 
35.5
 %
      Total noninterest income
29,504

 
28,684

 
28,256

 
16,938

 
103,382

 
2.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
51,505

 
50,852

 
55,531

 
31,102

 
188,990

 
1.3
 %
  Net occupancy
6,322

 
6,765

 
6,631

 
4,497

 
24,215

 
(6.5
)%
  Furniture and equipment
3,498

 
4,072

 
5,298

 
2,040

 
14,908

 
(14.1
)%
  Data processing
5,599

 
4,502

 
14,304

 
3,672

 
28,077

 
24.4
 %
  Marketing
1,651

 
2,502

 
2,644

 
801

 
7,598

 
(34.0
)%
  Communication
805

 
785

 
1,118

 
459

 
3,167

 
2.5
 %
  Professional services
1,794

 
2,621

 
5,659

 
2,198

 
12,272

 
(31.6
)%
  State intangible tax
1,086

 
1,223

 
1,078

 
765

 
4,152

 
(11.2
)%
  FDIC assessments
1,018

 
734

 
1,323

 
894

 
3,969

 
38.7
 %
  Loss (gain) - other real estate owned
41

 
538

 
(283
)
 
77

 
373

 
(92.4
)%
  Other
10,033

 
10,821

 
9,452

 
5,783

 
36,089

 
(7.3
)%
      Total noninterest expenses
83,352

 
85,415

 
102,755

 
52,288

 
323,810

 
(2.4
)%
Income before income taxes
66,801

 
63,516

 
45,745

 
38,159

 
214,221

 
5.2
 %
Income tax expense
11,787

 
12,859

 
9,327

 
7,653

 
41,626

 
(8.3
)%
      Net income
$
55,014

 
$
50,657

 
$
36,418

 
$
30,506

 
$
172,595

 
8.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
ADDITIONAL DATA
 
 
 
 
 
 
 
 
 
 
 
Net earnings per share - basic
$
0.56

 
$
0.52

 
$
0.37

 
$
0.49

 
$
1.95

 
 
Net earnings per share - diluted
$
0.56

 
$
0.51

 
$
0.37

 
$
0.49

 
$
1.93

 
 
Dividends declared per share
$
0.20

 
$
0.20

 
$
0.19

 
$
0.19

 
$
0.78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.59
%
 
1.45
%
 
1.05
%
 
1.40
%
 
1.37
%
 
 
Return on average shareholders' equity
10.68
%
 
9.94
%
 
7.36
%
 
13.31
%
 
9.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
153,429

 
$
149,220

 
$
147,379

 
$
90,354

 
$
540,382

 
2.8
 %
Tax equivalent adjustment
1,442

 
1,567

 
1,420

 
718

 
5,147

 
(8.0
)%
   Interest income - tax equivalent
154,871

 
150,787

 
148,799

 
91,072

 
545,529

 
2.7
 %
Interest expense
27,470

 
25,735

 
23,400

 
14,542

 
91,147

 
6.7
 %
   Net interest income - tax equivalent
$
127,401

 
$
125,052

 
$
125,399

 
$
76,530

 
$
454,382

 
1.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
4.16
%
 
4.06
%
 
4.10
%
 
3.80
%
 
4.05
%
 
 
Net interest margin (fully tax equivalent) (1)
4.21
%
 
4.12
%
 
4.15
%
 
3.84
%
 
4.10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Full-time equivalent employees
2,073

 
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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
% Change
 
% Change
 
2018
 
2018
 
2018
 
2018
 
2017
 
Linked Qtr.
 
Comparable Qtr.
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
     Cash and due from banks
$
236,221

 
$
193,288

 
$
216,667

 
$
116,581

 
$
150,650

 
22.2
 %
 
56.8
 %
     Interest-bearing deposits with other banks
37,738

 
28,989

 
37,915

 
10,200

 
33,974

 
30.2
 %
 
11.1
 %
     Investment securities available-for-sale
2,779,255

 
2,626,726

 
2,654,909

 
1,359,381

 
1,349,408

 
5.8
 %
 
106.0
 %
     Investment securities held-to-maturity
429,328

 
434,369

 
443,957

 
633,722

 
654,008

 
(1.2
)%
 
(34.4
)%
     Other investments
115,660

 
115,757

 
95,004

 
53,070

 
53,140

 
(0.1
)%
 
117.7
 %
     Loans held for sale
4,372

 
13,277

 
15,821

 
8,048

 
11,502

 
(67.1
)%
 
(62.0
)%
     Loans and leases
 
 
 
 
 
 
 
 
 
 
 
 
 
       Commercial and industrial
2,514,661

 
2,426,590

 
2,440,596

 
1,943,741

 
1,912,743

 
3.6
 %
 
31.5
 %
       Lease financing
93,415

 
95,317

 
96,198

 
81,617

 
89,347

 
(2.0
)%
 
4.6
 %
       Construction real estate
548,935

 
565,077

 
555,468

 
494,665

 
467,730

 
(2.9
)%
 
17.4
 %
       Commercial real estate
3,754,681

 
3,868,143

 
3,888,993

 
2,544,051

 
2,490,091

 
(2.9
)%
 
50.8
 %
       Residential real estate
955,646

 
932,962

 
918,904

 
468,584

 
471,391

 
2.4
 %
 
102.7
 %
       Home equity
817,282

 
816,133

 
835,031

 
483,643

 
493,604

 
0.1
 %
 
65.6
 %
       Installment
93,212

 
97,413

 
100,726

 
39,248

 
41,586

 
(4.3
)%
 
124.1
 %
       Credit card
46,382

 
45,741

 
48,665

 
46,472

 
46,691

 
1.4
 %
 
(0.7
)%
          Total loans
8,824,214

 
8,847,376

 
8,884,581

 
6,102,021

 
6,013,183

 
(0.3
)%
 
46.7
 %
       Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
          Allowance for loan and lease losses
56,542

 
57,715

 
54,076

 
54,380

 
54,021

 
(2.0
)%
 
4.7
 %
                Net loans
8,767,672

 
8,789,661

 
8,830,505

 
6,047,641

 
5,959,162

 
(0.3
)%
 
47.1
 %
     Premises and equipment
215,652

 
219,940

 
223,950

 
127,046

 
125,036

 
(1.9
)%
 
72.5
 %
     Goodwill
880,251

 
881,033

 
883,025

 
204,083

 
204,084

 
(0.1
)%
 
331.3
 %
     Other intangibles
50,779

 
53,327

 
51,631

 
4,970

 
5,295

 
(4.8
)%
 
859.0
 %
     Accrued interest and other assets
469,732

 
486,300

 
466,783

 
333,687

 
350,664

 
(3.4
)%
 
34.0
 %
       Total Assets
$
13,986,660

 
$
13,842,667

 
$
13,920,167

 
$
8,898,429

 
$
8,896,923

 
1.0
 %
 
57.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
     Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
       Interest-bearing demand
$
2,307,071

 
$
2,284,271

 
$
2,440,088

 
$
1,442,399

 
$
1,453,463

 
1.0
 %
 
58.7
 %
       Savings
3,167,325

 
3,134,944

 
3,087,683

 
2,450,196

 
2,462,420

 
1.0
 %
 
28.6
 %
       Time
2,173,564

 
1,957,574

 
2,104,044

 
1,545,273

 
1,317,105

 
11.0
 %
 
65.0
 %
          Total interest-bearing deposits
7,647,960

 
7,376,789

 
7,631,815

 
5,437,868

 
5,232,988

 
3.7
 %
 
46.1
 %
       Noninterest-bearing
2,492,434

 
2,375,845

 
2,471,932

 
1,572,636

 
1,662,058

 
4.9
 %
 
50.0
 %
          Total deposits
10,140,394

 
9,752,634

 
10,103,747

 
7,010,504

 
6,895,046

 
4.0
 %
 
47.1
 %
     Federal funds purchased and securities sold
 
 
 
 
 
 
 
 
 
 
 
 
 
         under agreements to repurchase
183,591

 
123,452

 
88,070

 
56,732

 
72,265

 
48.7
 %
 
154.1
 %
     FHLB short-term borrowings
857,100

 
1,170,800

 
1,100,233

 
601,600

 
742,300

 
(26.8
)%
 
15.5
 %
          Total short-term borrowings
1,040,691

 
1,294,252

 
1,188,303

 
658,332

 
814,565

 
(19.6
)%
 
27.8
 %
     Long-term debt
570,739

 
570,037

 
469,423

 
169,695

 
119,654

 
0.1
 %
 
377.0
 %
          Total borrowed funds
1,611,430

 
1,864,289

 
1,657,726

 
828,027

 
934,219

 
(13.6
)%
 
72.5
 %
     Accrued interest and other liabilities
156,587

 
190,224

 
145,757

 
119,913

 
136,994

 
(17.7
)%
 
14.3
 %
       Total Liabilities
11,908,411

 
11,807,147

 
11,907,230

 
7,958,444

 
7,966,259

 
0.9
 %
 
49.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
     Common stock
1,633,256

 
1,633,828

 
1,632,572

 
571,457

 
573,109

 
0.0
 %
 
185.0
 %
     Retained earnings
600,014

 
564,545

 
533,319

 
515,498

 
491,847

 
6.3
 %
 
22.0
 %
     Accumulated other comprehensive loss
(44,408
)
 
(52,897
)
 
(43,008
)
 
(34,683
)
 
(20,390
)
 
(16.0
)%
 
117.8
 %
     Treasury stock, at cost
(110,613
)
 
(109,956
)
 
(109,946
)
 
(112,287
)
 
(113,902
)
 
0.6
 %
 
(2.9
)%
       Total Shareholders' Equity
2,078,249

 
2,035,520

 
2,012,937

 
939,985

 
930,664

 
2.1
 %
 
123.3
 %
       Total Liabilities and Shareholders' Equity
$
13,986,660

 
$
13,842,667

 
$
13,920,167

 
$
8,898,429

 
$
8,896,923

 
1.0
 %
 
57.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 


6


FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
 
 
 
 
 
 
 
Quarterly Averages
 
Year-to-Date Averages
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
December 31,
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
     Cash and due from banks
$
213,927

 
$
199,843

 
$
224,824

 
$
116,095

 
$
121,792

 
$
188,971

 
$
116,409

     Federal funds sold
0

 
0

 
786

 
0

 
0

 
196

 
0

     Interest-bearing deposits with other banks
32,013

 
39,873

 
28,475

 
27,073

 
25,357

 
31,894

 
30,933

     Investment securities
3,204,758

 
3,168,044

 
3,157,339

 
2,042,781

 
2,020,040

 
2,897,167

 
2,001,387

     Loans held for sale
10,411

 
15,270

 
14,462

 
9,171

 
12,572

 
12,340

 
10,679

     Loans and leases

 

 
 
 
 
 
 
 
 
 
 
       Commercial and industrial
2,402,296

 
2,392,229

 
2,421,244

 
1,897,726

 
1,857,546

 
2,518,333

 
1,815,925

       Lease financing
94,111

 
94,030

 
94,431

 
86,755

 
84,635

 
91,476

 
86,662

       Construction real estate
567,086

 
570,125

 
577,883

 
483,930

 
449,195

 
540,014

 
429,868

       Commercial real estate
3,793,376

 
3,887,748

 
3,923,784

 
2,495,604

 
2,487,149

 
3,310,697

 
2,448,570

       Residential real estate
941,047

 
918,361

 
929,667

 
468,855

 
477,454

 
809,114

 
488,718

       Home equity
813,779

 
822,834

 
825,236

 
487,073

 
494,804

 
724,926

 
472,860

       Installment
95,779

 
99,907

 
99,896

 
40,409

 
42,283

 
95,847

 
47,520

       Credit card
48,417

 
48,206

 
46,797

 
46,969

 
46,652

 
47,951

 
45,061

          Total loans
8,755,891

 
8,833,440

 
8,918,938

 
6,007,321

 
5,939,718

 
8,138,358

 
5,835,184

       Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
          Allowance for loan and lease losses
58,216

 
55,877

 
55,318

 
55,016

 
55,279

 
56,115

 
56,599

                Net loans
8,697,675

 
8,777,563

 
8,863,620

 
5,952,305

 
5,884,439

 
8,082,243

 
5,778,585

     Premises and equipment
218,430

 
222,718

 
230,475

 
126,016

 
126,310

 
199,727

 
129,702

     Goodwill
878,669

 
882,917

 
883,179

 
204,083

 
204,084

 
714,528

 
204,084

     Other intangibles
52,291

 
53,013

 
54,278

 
5,161

 
5,487

 
41,347

 
5,971

     Accrued interest and other assets
460,784

 
463,434

 
498,922

 
347,491

 
331,875

 
443,025

 
333,653

       Total Assets
$
13,768,958

 
$
13,822,675

 
$
13,956,360

 
$
8,830,176

 
$
8,731,956

 
$
12,611,438

 
$
8,611,403

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
     Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
       Interest-bearing demand
$
2,342,528

 
$
2,334,305

 
$
2,573,150

 
$
1,415,603

 
$
1,502,245

 
$
2,169,396

 
$
1,491,114

       Savings
3,156,789

 
3,149,871

 
3,196,059

 
2,450,697

 
2,518,771

 
2,990,731

 
2,412,788

       Time
2,073,752

 
2,014,936

 
2,192,196

 
1,466,440

 
1,181,396

 
1,938,709

 
1,189,963

          Total interest-bearing deposits
7,573,069

 
7,499,112

 
7,961,405

 
5,332,740

 
5,202,412

 
7,098,836

 
5,093,865

       Noninterest-bearing
2,476,773

 
2,388,976

 
2,421,230

 
1,570,572

 
1,637,228

 
2,217,349

 
1,540,384

          Total deposits
10,049,842

 
9,888,088

 
10,382,635

 
6,903,312

 
6,839,640

 
9,316,185

 
6,634,249

     Federal funds purchased and securities sold
 
 
 
 
 
 
 
 
 
 
 
 
 
          under agreements to repurchase
65,805

 
112,308

 
97,708

 
72,865

 
57,131

 
87,221

 
69,766

     FHLB short-term borrowings
873,533

 
1,076,106

 
818,909

 
667,641

 
660,859

 
860,206

 
760,599

          Total short-term borrowings
939,338

 
1,188,414

 
916,617

 
740,506

 
717,990

 
947,427

 
830,365

     Long-term debt
570,304

 
560,001

 
491,407

 
126,342

 
124,221

 
438,567

 
120,794

       Total borrowed funds
1,509,642

 
1,748,415

 
1,408,024

 
866,848

 
842,211

 
1,385,994

 
951,159

     Accrued interest and other liabilities
166,590

 
164,772

 
165,608

 
130,542

 
129,911

 
156,998

 
128,564

       Total Liabilities
11,726,074

 
11,801,275

 
11,956,267

 
7,900,702

 
7,811,762

 
10,859,177

 
7,713,972

 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
     Common stock
1,632,361

 
1,633,129

 
1,632,569

 
572,915

 
572,392

 
1,371,373

 
570,336

     Retained earnings
576,145

 
542,835

 
517,548

 
503,140

 
483,554

 
535,139

 
463,358

     Accumulated other comprehensive loss
(55,161
)
 
(44,505
)
 
(39,117
)
 
(33,285
)
 
(21,740
)
 
(43,081
)
 
(23,141
)
     Treasury stock, at cost
(110,461
)
 
(110,059
)
 
(110,907
)
 
(113,296
)
 
(114,012
)
 
(111,170
)
 
(113,122
)
       Total Shareholders' Equity
2,042,884

 
2,021,400

 
2,000,093

 
929,474

 
920,194

 
1,752,261

 
897,431

       Total Liabilities and Shareholders' Equity
$
13,768,958

 
$
13,822,675

 
$
13,956,360

 
$
8,830,176

 
$
8,731,956

 
$
12,611,438

 
$
8,611,403

 
 
 
 
 
 
 
 
 
 
 
 
 
 


7


FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 
 
 
 
 
 
 
 Quarterly Averages
 
Year-to-Date Averages
 
 
December 31, 2018
 
September 30, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
Earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment securities
 
$
3,204,758

 
3.30
%
 
$
3,168,044

 
3.21
%
 
$
2,020,040

 
2.90
%
 
$
2,897,167

 
3.19
%
 
$
2,001,387

 
2.82
%
      Interest-bearing deposits with other banks
 
32,013

 
2.38
%
 
39,873

 
2.14
%
 
25,357

 
1.41
%
 
32,090

 
2.15
%
 
30,933

 
1.12
%
    Gross loans (1)
 
8,766,302

 
5.73
%
 
8,848,710

 
5.53
%
 
5,959,703

 
4.90
%
 
8,151,068

 
5.49
%
 
5,855,398

 
4.72
%
       Total earning assets
 
12,003,073

 
5.07
%
 
12,056,627

 
4.91
%
 
8,005,100

 
4.39
%
 
11,080,325

 
4.88
%
 
7,887,718

 
4.22
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonearning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Allowance for loan and lease losses
 
(58,216
)
 
 
 
(55,877
)
 
 
 
(55,279
)
 
 
 
(56,115
)
 
 
 
(56,599
)
 
 
    Cash and due from banks
 
213,927

 
 
 
199,843

 
 
 
121,792

 
 
 
188,971

 
 
 
116,409

 
 
    Accrued interest and other assets
 
1,610,174

 
 
 
1,622,082

 
 
 
660,343

 
 
 
1,398,257

 
 
 
663,875

 
 
       Total assets
 
$
13,768,958

 
 
 
$
13,822,675

 
 
 
$
8,731,956

 
 
 
$
12,611,438

 
 
 
$
8,611,403

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Interest-bearing demand
 
$
2,342,528

 
0.48
%
 
$
2,334,305

 
0.34
%
 
$
1,502,245

 
0.34
%
 
$
2,169,396

 
0.39
%
 
$
1,491,114

 
0.28
%
      Savings
 
3,156,789

 
0.66
%
 
3,149,871

 
0.59
%
 
2,518,771

 
0.63
%
 
2,990,731

 
0.60
%
 
2,412,788

 
0.66
%
      Time
 
2,073,752

 
1.75
%
 
2,014,936

 
1.58
%
 
1,181,396

 
1.33
%
 
1,938,709

 
1.57
%
 
1,189,963

 
1.26
%
    Total interest-bearing deposits
 
7,573,069

 
0.90
%
 
7,499,112

 
0.78
%
 
5,202,412

 
0.70
%
 
7,098,836

 
0.80
%
 
5,093,865

 
0.69
%
    Borrowed funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Short-term borrowings
 
939,338

 
2.19
%
 
1,188,414

 
2.02
%
 
717,990

 
1.18
%
 
947,427

 
1.90
%
 
830,365

 
0.99
%
      Long-term debt
 
570,304

 
3.54
%
 
560,001

 
3.55
%
 
124,221

 
4.91
%
 
438,567

 
3.68
%
 
120,794

 
5.09
%
        Total borrowed funds
 
1,509,642

 
2.70
%
 
1,748,415

 
2.51
%
 
842,211

 
1.73
%
 
1,385,994

 
2.47
%
 
951,159

 
1.51
%
       Total interest-bearing liabilities
 
9,082,711

 
1.20
%
 
9,247,527

 
1.10
%
 
6,044,623

 
0.85
%
 
8,484,830

 
1.07
%
 
6,045,024

 
0.82
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Noninterest-bearing demand deposits
 
2,476,773

 
 
 
2,388,976

 
 
 
1,637,228

 
 
 
2,217,349

 
 
 
1,540,384

 
 
    Other liabilities
 
166,590

 
 
 
164,772

 
 
 
129,911

 
 
 
156,998

 
 
 
128,564

 
 
    Shareholders' equity
 
2,042,884

 
 
 
2,021,400

 
 
 
920,194

 
 
 
1,752,261

 
 
 
897,431

 
 
       Total liabilities & shareholders' equity
 
$
13,768,958

 
 
 
$
13,822,675

 
 
 
$
8,731,956

 
 
 
$
12,611,438

 
 
 
$
8,611,403

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
125,959

 
 
 
$
123,485

 
 
 
$
75,614

 
 
 
$
449,235

 

 
$
283,545

 

Net interest spread
 
 
 
3.87
%
 
 
 
3.81
%
 
 
 
3.54
%
 
 
 
3.81
%
 
 
 
3.40
%
Net interest margin
 
 
 
4.16
%
 
 
 
4.06
%
 
 
 
3.75
%
 
 
 
4.05
%
 
 
 
3.59
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax equivalent adjustment
 
 
 
0.05
%
 
 
 
0.06
%
 
 
 
0.07
%
 
 
 
0.05
%
 
 
 
0.07
%
Net interest margin (fully tax equivalent)
 
 
 
4.21
%
 
 
 
4.12
%
 
 
 
3.82
%
 
 
 
4.10
%
 
 
 
3.66
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
$
744

 
$
305

 
$
1,049

 
$
2,020

 
$
9,854

 
$
11,874

 
$
7,417

 
$
28,601

 
$
36,018

    Interest-bearing deposits with other banks
 
24

 
(47
)
 
(23
)
 
62

 
40

 
102

 
319

 
25

 
344

    Gross loans (2)
 
4,373

 
(1,190
)
 
3,183

 
12,389

 
40,526

 
52,915

 
45,001

 
125,946

 
170,947

       Total earning assets
 
5,141

 
(932
)
 
4,209

 
14,471

 
50,420

 
64,891

 
52,737

 
154,572

 
207,309

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Total interest-bearing deposits
 
$
2,358

 
$
168

 
$
2,526

 
$
2,571

 
$
5,384

 
$
7,955

 
$
5,692

 
$
16,088

 
$
21,780

    Borrowed funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Short-term borrowings
 
509

 
(1,375
)
 
(866
)
 
1,820

 
1,222

 
3,042

 
7,612

 
2,228

 
9,840

    Long-term debt
 
(17
)
 
92

 
75

 
(429
)
 
3,978

 
3,549

 
(1,704
)
 
11,703

 
9,999

       Total borrowed funds
 
492

 
(1,283
)
 
(791
)
 
1,391

 
5,200

 
6,591

 
5,908

 
13,931

 
19,839

       Total interest-bearing liabilities
 
2,850

 
(1,115
)
 
1,735

 
3,962

 
10,584

 
14,546

 
11,600

 
30,019

 
41,619

          Net interest income (1)
 
$
2,291

 
$
183

 
$
2,474

 
$
10,509

 
$
39,836

 
$
50,345

 
$
41,137

 
$
124,553

 
$
165,690

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Full Year
 
Full Year
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
57,715

 
$
54,076

 
$
54,380

 
$
54,021

 
$
54,534

 
$
54,021

 
$
57,961

  Provision for loan and lease losses
5,310

 
3,238

 
3,735

 
2,303

 
(205
)
 
14,586

 
3,582

  Gross charge-offs
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
6,060

 
232

 
4,356

 
885

 
1,264

 
11,533

 
10,194

    Construction real estate
0

 
0

 
0

 
0

 
1

 
0

 
1

    Commercial real estate
1,679

 
902

 
78

 
2,176

 
10

 
4,835

 
1,038

    Residential real estate
80

 
145

 
101

 
96

 
128

 
422

 
435

    Home equity
747

 
351

 
385

 
242

 
278

 
1,725

 
913

    Installment
158

 
43

 
218

 
16

 
26

 
435

 
225

    Credit card
392

 
390

 
684

 
254

 
209

 
1,720

 
857

      Total gross charge-offs
9,116

 
2,063

 
5,822

 
3,669

 
1,916

 
20,670

 
13,663

  Recoveries
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
485

 
627

 
518

 
436

 
370

 
2,066

 
1,650

    Lease financing
0

 
0

 
1

 
0

 
0

 
1

 
1

    Construction real estate
0

 
146

 
0

 
0

 
0

 
146

 
89

    Commercial real estate
1,681

 
786

 
887

 
752

 
480

 
4,106

 
2,719

    Residential real estate
44

 
71

 
70

 
26

 
77

 
211

 
215

    Home equity
274

 
419

 
187

 
429

 
589

 
1,309

 
1,027

    Installment
94

 
351

 
82

 
48

 
46

 
575

 
234

    Credit card
55

 
64

 
38

 
34

 
46

 
191

 
206

      Total recoveries
2,633

 
2,464

 
1,783

 
1,725

 
1,608

 
8,605

 
6,141

  Total net charge-offs
6,483

 
(401
)
 
4,039

 
1,944

 
308

 
12,065

 
7,522

Ending allowance for loan and lease losses
$
56,542

 
$
57,715

 
$
54,076

 
$
54,380

 
$
54,021

 
$
56,542

 
$
54,021

 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
 
 
 
 
 
 
 
 
 
 
  Commercial and industrial
0.92
 %
 
(0.07
)%
 
0.64
 %
 
0.10
 %
 
0.19
 %
 
0.38
 %
 
0.47
 %
  Lease financing
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
0.00
 %
  Construction real estate
0.00
 %
 
(0.10
)%
 
0.00
 %
 
0.00
 %
 
0.00
 %
 
(0.03
)%
 
(0.02
)%
  Commercial real estate
0.00
 %
 
0.01
 %
 
(0.08
)%
 
0.23
 %
 
(0.07
)%
 
0.02
 %
 
(0.07
)%
  Residential real estate
0.02
 %
 
0.03
 %
 
0.01
 %
 
0.06
 %
 
0.04
 %
 
0.03
 %
 
0.05
 %
  Home equity
0.23
 %
 
(0.03
)%
 
0.10
 %
 
(0.16
)%
 
(0.25
)%
 
0.06
 %
 
(0.02
)%
  Installment
0.27
 %
 
(1.22
)%
 
0.55
 %
 
(0.32
)%
 
(0.19
)%
 
(0.15
)%
 
(0.02
)%
  Credit card
2.76
 %
 
2.68
 %
 
5.54
 %
 
1.90
 %
 
1.39
 %
 
3.19
 %
 
1.44
 %
     Total net charge-offs
0.29
 %
 
(0.02
)%
 
0.18
 %
 
0.13
 %
 
0.02
 %
 
0.15
 %
 
0.13
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
 
 
  Nonaccrual loans (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
$
30,925

 
$
4,310

 
$
3,448

 
$
6,275

 
$
5,229

 
$
30,925

 
$
5,229

    Lease financing
22

 
0

 
0

 
0

 
82

 
22

 
82

    Construction real estate
9

 
10

 
24

 
26

 
29

 
9

 
29

    Commercial real estate
20,500

 
20,338

 
21,593

 
16,878

 
10,616

 
20,500

 
10,616

    Residential real estate
13,495

 
11,365

 
9,278

 
3,324

 
4,140

 
13,495

 
4,140

    Home equity
5,580

 
6,018

 
5,820

 
3,484

 
3,743

 
5,580

 
3,743

    Installment
169

 
327

 
299

 
296

 
243

 
169

 
243

      Nonaccrual loans
70,700

 
42,368

 
40,462

 
30,283

 
24,082

 
70,700

 
24,082

  Accruing troubled debt restructurings (TDRs)
16,109

 
20,313

 
21,839

 
14,943

 
17,545

 
16,109

 
17,545

     Total nonperforming loans
86,809

 
62,681

 
62,301

 
45,226

 
41,627

 
86,809

 
41,627

  Other real estate owned (OREO)
1,401

 
1,918

 
1,853

 
1,065

 
2,781

 
1,401

 
2,781

     Total nonperforming assets
88,210

 
64,599

 
64,154

 
46,291

 
44,408

 
88,210

 
44,408

  Accruing loans past due 90 days or more
63

 
144

 
327

 
529

 
61

 
63

 
61

     Total underperforming assets
$
88,273

 
$
64,743

 
$
64,481

 
$
46,820

 
$
44,469


$
88,273

 
$
44,469

Total classified assets
$
131,668

 
$
138,868

 
$
139,317

 
$
87,577

 
$
87,293

 
$
131,668

 
$
87,293

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Nonaccrual loans
79.97
 %
 
136.22
 %
 
133.65
 %
 
179.57
 %
 
224.32
 %
 
79.97
 %
 
224.32
 %
     Nonperforming loans
65.13
 %
 
92.08
 %
 
86.80
 %
 
120.24
 %
 
129.77
 %
 
65.13
 %
 
129.77
 %
     Total ending loans
0.64
 %
 
0.65
 %
 
0.61
 %
 
0.89
 %
 
0.90
 %
 
0.64
 %
 
0.90
 %
Nonperforming loans to total loans
0.98
 %
 
0.71
 %
 
0.70
 %
 
0.74
 %
 
0.69
 %
 
0.98
 %
 
0.69
 %
Nonperforming assets to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Ending loans, plus OREO
1.00
 %
 
0.73
 %
 
0.72
 %
 
0.76
 %
 
0.74
 %
 
1.00
 %
 
0.74
 %
     Total assets
0.63
 %
 
0.47
 %
 
0.46
 %
 
0.52
 %
 
0.50
 %
 
0.63
 %
 
0.50
 %
Nonperforming assets, excluding accruing TDRs to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Ending loans, plus OREO
0.82
 %
 
0.50
 %
 
0.48
 %
 
0.51
 %
 
0.45
 %
 
0.82
 %
 
0.45
 %
     Total assets
0.52
 %
 
0.32
 %
 
0.30
 %
 
0.35
 %
 
0.30
 %
 
0.52
 %
 
0.30
 %
Classified assets to total assets
0.94
 %
 
1.00
 %
 
1.00
 %
 
0.98
 %
 
0.98
 %
 
0.94
 %
 
0.98
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Nonaccrual loans include nonaccrual TDRs of $22.4 million, $4.7 million, $5.9 million, $6.0 million, and $6.4 million, as of December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively.
 
 
 
 
 


10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Twelve months ended,
 
Dec. 31,
 
Sep. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
PER COMMON SHARE
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Price
 
 
 
 
 
 
 
 
 
 
 
 
 
  High
$
29.58

 
$
32.35

 
$
33.55

 
$
29.35

 
$
29.15

 
$
33.55

 
$
29.15

  Low
$
22.40

 
$
29.40

 
$
28.10

 
$
26.40

 
$
25.30

 
$
22.40

 
$
23.10

  Close
$
23.72

 
$
29.70

 
$
30.65

 
$
29.35

 
$
26.35

 
$
23.72

 
$
26.35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shares outstanding - basic
97,424,839

 
97,411,201

 
97,347,533

 
61,654,686

 
61,595,629

 
88,582,090

 
61,529,460

Average shares outstanding - diluted
98,468,237

 
98,484,228

 
98,432,072

 
62,180,744

 
62,131,840

 
89,614,205

 
62,171,590

Ending shares outstanding
97,894,286

 
97,914,526

 
97,904,897

 
62,213,823

 
62,069,087

 
97,894,286

 
62,069,087

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders' equity
$
2,078,249

 
$
2,035,520

 
$
2,012,937

 
$
939,985

 
$
930,664

 
$
2,078,249

 
$
930,664

 
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL
Preliminary
 
 
 
 
 
 
 
 
 
Preliminary
 
 
Common equity tier 1 capital
$
1,215,613

 
$
1,177,630

 
$
1,142,718

 
$
779,491

 
$
755,735

 
$
1,215,613

 
$
755,735

Common equity tier 1 capital ratio
11.87
%
 
11.52
%
 
11.15
%
 
10.77
%
 
10.63
%
 
11.87
%
 
10.63
%
Tier 1 capital
$
1,257,366

 
$
1,219,383

 
$
1,184,471

 
$
779,595

 
$
755,839

 
$
1,257,366

 
$
755,839

Tier 1 ratio
12.28
%
 
11.93
%
 
11.55
%
 
10.77
%
 
10.63
%
 
12.28
%
 
10.63
%
Total capital
$
1,444,146

 
$
1,407,252

 
$
1,369,231

 
$
953,243

 
$
929,148

 
$
1,444,146

 
$
929,148

Total capital ratio
14.10
%
 
13.77
%
 
13.36
%
 
13.17
%
 
13.07
%
 
14.10
%
 
13.07
%
Total capital in excess of minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
  requirement
$
432,832

 
$
397,783

 
$
356,930

 
$
238,221

 
$
271,600

 
$
432,832

 
$
271,600

Total risk-weighted assets
$
10,241,159

 
$
10,222,466

 
$
10,251,147

 
$
7,240,731

 
$
7,108,629

 
$
10,241,159

 
$
7,108,629

Leverage ratio
9.71
%
 
9.41
%
 
9.06
%
 
9.00
%
 
8.84
%
 
9.71
%
 
8.84
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending shareholders' equity to ending assets
14.86
%
 
14.70
%
 
14.46
%
 
10.56
%
 
10.46
%
 
14.86
%
 
10.46
%
Ending tangible shareholders' equity to ending tangible assets
8.79
%
 
8.53
%
 
8.30
%
 
8.41
%
 
8.30
%
 
8.79
%
 
8.30
%
Average shareholders' equity to average assets
14.84
%
 
14.62
%
 
14.33
%
 
10.53
%
 
10.54
%
 
13.89
%
 
10.42
%
Average tangible shareholders' equity to average tangible assets
8.66
%
 
8.42
%
 
8.16
%
 
8.35
%
 
8.34
%
 
8.40
%
 
8.18
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 

11