EX-99.1 2 a8k3q19earningsrelease99-1.htm EXHIBIT 99.1 Document
                                                Exhibit 99.1
yellowbara10.jpgbancorplogoa02.jpg                                        
First Financial Bancorp Announces Third Quarter Financial Results
•
Third Quarter 2019 Earnings per Diluted Share of $0.51
•
3.7% Loan Growth on an Annualized Basis
•
3.96% fully tax equivalent net interest margin
•
Strong noninterest income of $33.1 million
•
Successful closing of Bannockburn acquisition

Cincinnati, Ohio - October 17, 2019 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the third quarter 2019.

For the three months ended September 30, 2019, the Company reported net income of $50.9 million, or $0.51 per diluted common share. These results compare to net income of $52.7 million, or $0.53 per diluted common share, for the second quarter of 2019 and $50.7 million, or $0.51 per diluted common share, for the third quarter of 2018. Income before taxes was negatively impacted by $5.2 million of severance and merger-related items and $0.7 million of branch consolidation costs, which combined to reduce earnings per diluted common share by $0.05 after income taxes. For the nine months ended September 30, 2019, First Financial had earnings per diluted common share of $1.51 compared to $1.36 for the same period in 2018.

Return on average assets for the third quarter of 2019 was 1.41% while return on average tangible common equity was 16.15%. These compare to returns on average assets of 1.50% and 1.45%, and returns on average tangible common equity of 17.33% and 18.52%, in the second quarter of 2019 and the third quarter of 2018, respectively.

Third quarter 2019 highlights include:

•
After adjustments(1) for merger-related and nonrecurring items:
◦
Net income of $0.56 per diluted common share
◦
1.54% return on average assets; 17.63% return on average tangible common equity

•
Loan balances grew 3.7% on an annualized basis
◦
$82.9 million increase compared to the linked quarter

•
Net interest margin of 3.96% on a fully tax-equivalent basis(1) 
◦
8 basis point reduction from the linked quarter driven by lower asset yields

•
Noninterest income of $33.1 million
◦
Positively impacted by acquisition of Bannockburn, strong mortgage banking income, and sustained client derivative and service charge income; combined to largely offset the impact from Durbin

•
Noninterest expenses of $86.2 million, or $80.3 million as adjusted(1)
◦
Efficiency ratio of 55.7%; 52.0% as adjusted(1) 
    
•
ALLL declined to $56.6 million, or 0.62% of loans; Improvement in nonperforming and classified asset levels; elevated net charge-offs related to previously discussed franchise relationships

•
Strong capital ratios
◦
Total capital of 13.64%; Tier 1 common equity of 11.53%; Tangible common equity of 9.17%
◦
Tangible book value decreased to $12.33
____________________________________________________________________________________________(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, remarked, “We are pleased to announce strong third quarter performance buoyed by consistent earnings, strong fee income and our ability to maintain a solid net interest margin. Annualized loan growth, fee income and net interest margin met or surpassed our expectations, and resulted in adjusted(1) earnings per share of $0.56 and an adjusted(1) return on assets of 1.54%.”
Mr. Brown continued, “Record loan originations were more than enough to offset a spike in payoffs, resulting in annualized loan growth of 3.7% for the quarter. Despite interest rate headwinds, net interest margin was at the high end of our expectations as we were able to proactively reduce deposit costs. Our focus will remain on disciplined deposit pricing to help mitigate the impact of further fed rate reductions. Credit trends are improving as both nonperforming and classified asset balances declined during the period; however we were disappointed in elevated net charge-offs, which were driven by three large franchise relationships discussed in prior periods. Overall, we remain satisfied with our strong operating performance in the midst of a challenging interest rate environment."

Mr Brown further noted, "We were also excited to complete the purchase of Bannockburn at the end of August. This strategic acquisition broadens our product offerings to middle market clients, expands our customer base and increases fee income, consistent with our stated objectives."
Mr. Brown concluded, "We repurchased 1.1 million shares during the quarter, which reflects our intention to maximize shareholder value while maintaining strong capital levels. The share repurchases and the acquisition of Bannockburn modestly impacted our capital ratios. We believe that our strong capital position provides the flexibility for additional capital deployment opportunities in the future."
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 18, 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 10135470. 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 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, 2018, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.

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

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of September 30, 2019, the Company had $14.5 billion in assets, $9.1 billion in loans, $10.1 billion in deposits and $2.3 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 $2.9 billion in assets under management as of September 30, 2019. The Company operated 145 full service banking centers as of September 30, 2019, primarily in Ohio, Indiana and Kentucky, 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                        Tim Condron
Chief Financial Officer                    Marketing Communications Manager
(513) 887-5400                        (513) 979-5796
InvestorRelations@bankatfirst.com            media@bankatfirst.com    

3


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Selected Financial Information
September 30, 2019
(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,
 
2019
 
2019
 
2019
 
2018
 
2018
 
2019
 
2018
RESULTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
50,856

 
$
52,703

 
$
45,839

 
$
55,014

 
$
50,657

 
$
149,398

 
$
117,581

Net earnings per share - basic
$
0.52

 
$
0.54

 
$
0.47

 
$
0.56

 
$
0.52

 
$
1.52

 
$
1.37

Net earnings per share - diluted
$
0.51

 
$
0.53

 
$
0.47

 
$
0.56

 
$
0.51

 
$
1.51

 
$
1.36

Dividends declared per share
$
0.23

 
$
0.22

 
$
0.22

 
$
0.20

 
$
0.20

 
$
0.67

 
$
0.58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
KEY FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.41
%
 
1.50
%
 
1.33
%
 
1.59
%
 
1.45
 %
 
1.41
%
 
1.29
%
Return on average shareholders' equity
9.13
%
 
9.85
%
 
8.88
%
 
10.68
%
 
9.94
 %
 
9.29
%
 
9.50
%
Return on average tangible shareholders' equity
16.15
%
 
17.33
%
 
15.95
%
 
19.63
%
 
18.52
 %
 
16.48
%
 
16.42
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
3.91
%
 
3.99
%
 
4.05
%
 
4.16
%
 
4.06
 %
 
3.98
%
 
4.01
%
Net interest margin (fully tax equivalent) (1)
3.96
%
 
4.04
%
 
4.10
%
 
4.21
%
 
4.12
 %
 
4.03
%
 
4.06
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending shareholders' equity as a percent of ending assets
15.62
%
 
15.16
%
 
15.14
%
 
14.86
%
 
14.70
 %
 
15.62
%
 
14.70
%
Ending tangible shareholders' equity as a percent of:
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending tangible assets
9.17
%
 
9.34
%
 
9.15
%
 
8.79
%
 
8.53
 %
 
9.17
%
 
8.53
%
Risk-weighted assets
11.35
%
 
11.82
%
 
11.61
%
 
11.20
%
 
10.77
 %
 
11.35
%
 
10.77
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity as a percent of average assets
15.43
%
 
15.22
%
 
15.01
%
 
14.84
%
 
14.62
 %
 
15.23
%
 
13.54
%
Average tangible shareholders' equity as a percent of
 
 
 
 
 
 
 
 
 
 
 
 
 
    average tangible assets
9.35
%
 
9.26
%
 
8.95
%
 
8.66
%
 
8.42
 %
 
9.19
%
 
8.31
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
$
22.59

 
$
22.18

 
$
21.60

 
$
21.23

 
$
20.79

 
$
22.59

 
$
20.79

Tangible book value per share
$
12.33

 
$
12.79

 
$
12.19

 
$
11.72

 
$
11.25

 
$
12.33

 
$
11.25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 ratio (2)
11.53
%
 
12.00
%
 
12.03
%
 
11.87
%
 
11.52
 %
 
11.53
%
 
11.52
%
Tier 1 ratio (2)
11.93
%
 
12.40
%
 
12.43
%
 
12.28
%
 
11.93
 %
 
11.93
%
 
11.93
%
Total capital ratio (2)
13.64
%
 
14.20
%
 
14.24
%
 
14.10
%
 
13.77
 %
 
13.64
%
 
13.77
%
Leverage ratio (2)
9.75
%
 
10.02
%
 
9.84
%
 
9.71
%
 
9.41
 %
 
9.75
%
 
9.41
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCE SHEET ITEMS
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans (3)
$
9,014,092

 
$
8,852,662

 
$
8,773,310

 
$
8,766,302

 
$
8,848,710

 
$
8,880,904

 
$
7,943,737

Investment securities
3,290,666

 
3,408,994

 
3,355,732

 
3,204,758

 
3,168,044

 
3,351,559

 
2,793,510

Interest-bearing deposits with other banks
38,569

 
33,255

 
34,709

 
32,013

 
39,873

 
35,525

 
32,116

  Total earning assets
$
12,343,327

 
$
12,294,911

 
$
12,163,751

 
$
12,003,073

 
$
12,056,627

 
$
12,267,988

 
$
10,769,363

Total assets
$
14,320,514

 
$
14,102,733

 
$
13,952,551

 
$
13,768,958

 
$
13,822,675

 
$
14,126,615

 
$
12,221,358

Noninterest-bearing deposits
$
2,513,458

 
$
2,484,214

 
$
2,457,587

 
$
2,476,773

 
$
2,388,976

 
$
2,485,291

 
$
2,129,924

Interest-bearing deposits
7,504,708

 
7,612,146

 
7,610,092

 
7,573,069

 
7,499,112

 
7,575,263

 
6,939,021

  Total deposits
$
10,018,166

 
$
10,096,360

 
$
10,067,679

 
$
10,049,842

 
$
9,888,088

 
$
10,060,554

 
$
9,068,945

Borrowings
$
1,816,983

 
$
1,656,570

 
$
1,587,068

 
$
1,509,642

 
$
1,748,415

 
$
1,687,716

 
$
1,344,325

Shareholders' equity
$
2,210,327

 
$
2,146,997

 
$
2,094,234

 
$
2,042,884

 
$
2,021,400

 
$
2,150,945

 
$
1,654,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
Allowance to ending loans
0.62
%
 
0.69
%
 
0.64
%
 
0.64
%
 
0.65
 %
 
0.62
%
 
0.65
%
Allowance to nonaccrual loans
93.18
%
 
119.86
%
 
95.40
%
 
79.97
%
 
136.22
 %
 
93.18
%
 
136.22
%
Allowance to nonperforming loans
71.46
%
 
69.33
%
 
68.94
%
 
65.13
%
 
92.08
 %
 
71.46
%
 
92.08
%
Nonperforming loans to total loans
0.87
%
 
0.99
%
 
0.93
%
 
0.98
%
 
0.71
 %
 
0.87
%
 
0.71
%
Nonperforming assets to ending loans, plus OREO
0.89
%
 
1.00
%
 
0.95
%
 
1.00
%
 
0.73
 %
 
0.89
%
 
0.73
%
Nonperforming assets to total assets
0.56
%
 
0.62
%
 
0.60
%
 
0.63
%
 
0.47
 %
 
0.56
%
 
0.47
%
Classified assets to total assets
0.92
%
 
1.02
%
 
1.01
%
 
0.94
%
 
1.00
 %
 
0.92
%
 
1.00
%
Net charge-offs to average loans (annualized)
0.45
%
 
0.08
%
 
0.64
%
 
0.29
%
 
(0.02
)%
 
0.39
%
 
0.09
%

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest 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, 2019 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,
 
2019
 
2018
 
% Change
 
2019
 
2018
 
% Change
Interest income
 
 
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
126,786

 
$
123,397

 
2.7
 %
 
$
376,207

 
$
320,607

 
17.3
 %
  Investment securities

 
 
 
 
 
 
 
 
 
 
     Taxable
22,180

 
21,801

 
1.7
 %
 
70,031

 
56,315

 
24.4
 %
     Tax-exempt
4,457

 
3,807

 
17.1
 %
 
13,051

 
9,532

 
36.9
 %
        Total investment securities interest
26,637

 
25,608

 
4.0
 %
 
83,082

 
65,847

 
26.2
 %
  Other earning assets
222

 
215

 
3.3
 %
 
638

 
499

 
27.9
 %
       Total interest income
153,645

 
149,220

 
3.0
 %
 
459,927

 
386,953

 
18.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
  Deposits
20,151

 
14,672

 
37.3
 %
 
60,006

 
39,764

 
50.9
 %
  Short-term borrowings
7,199

 
6,052

 
19.0
 %
 
19,805

 
12,847

 
54.2
 %
  Long-term borrowings
4,760

 
5,011

 
(5.0
)%
 
14,764

 
11,066

 
33.4
 %
      Total interest expense
32,110

 
25,735

 
24.8
 %
 
94,575

 
63,677

 
48.5
 %
      Net interest income
121,535

 
123,485

 
(1.6
)%
 
365,352

 
323,276

 
13.0
 %
  Provision for loan and lease losses
5,228

 
3,238

 
61.5
 %
 
25,969

 
9,276

 
180.0
 %
      Net interest income after provision for loan and lease losses
116,307

 
120,247

 
(3.3
)%
 
339,383

 
314,000

 
8.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
9,874

 
10,316

 
(4.3
)%
 
28,596

 
24,923

 
14.7
 %
  Trust and wealth management fees
3,718

 
3,728

 
(0.3
)%
 
11,731

 
11,379

 
3.1
 %
  Bankcard income
3,316

 
5,261

 
(37.0
)%
 
15,399

 
13,998

 
10.0
 %
  Client derivative fees
4,859

 
3,029

 
60.4
 %
 
11,468

 
6,249

 
83.5
 %
  Foreign exchange income
1,708

 
0

 
N/M

 
1,725

 
0

 
N/M

  Net gains from sales of loans
4,806

 
1,739

 
176.4
 %
 
10,128

 
4,643

 
118.1
 %
  Net gains (losses) on sale of investment securities
105

 
(167
)
 
162.9
 %
 
(110
)
 
(197
)
 
(44.2
)%
  Other
4,754

 
4,778

 
(0.5
)%
 
15,668

 
12,883

 
21.6
 %
      Total noninterest income
33,140

 
28,684

 
15.5
 %
 
94,605

 
73,878

 
28.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
53,212

 
50,852

 
4.6
 %
 
155,109

 
137,485

 
12.8
 %
  Net occupancy
5,509

 
6,765

 
(18.6
)%
 
17,735

 
17,893

 
(0.9
)%
  Furniture and equipment
4,120

 
4,072

 
1.2
 %
 
11,758

 
11,410

 
3.0
 %
  Data processing
5,774

 
4,502

 
28.3
 %
 
15,885

 
22,478

 
(29.3
)%
  Marketing
1,346

 
2,502

 
(46.2
)%
 
4,928

 
5,947

 
(17.1
)%
  Communication
910

 
785

 
15.9
 %
 
2,385

 
2,362

 
1.0
 %
  Professional services
4,771

 
2,621

 
82.0
 %
 
9,062

 
10,478

 
(13.5
)%
  State intangible tax
1,445

 
1,223

 
18.2
 %
 
4,062

 
3,066

 
32.5
 %
  FDIC assessments
(1,097
)
 
734

 
(249.5
)%
 
918

 
2,951

 
(68.9
)%
  Intangible amortization
2,432

 
2,486

 
(2.2
)%
 
6,521

 
5,130

 
27.1
 %
  Other
7,804

 
8,873

 
(12.0
)%
 
20,740

 
21,258

 
(2.4
)%
      Total noninterest expenses
86,226

 
85,415

 
0.9
 %
 
249,103

 
240,458

 
3.6
 %
Income before income taxes
63,221

 
63,516

 
(0.5
)%
 
184,885

 
147,420

 
25.4
 %
Income tax expense
12,365

 
12,859

 
(3.8
)%
 
35,487

 
29,839

 
18.9
 %
      Net income
$
50,856

 
$
50,657

 
0.4
 %
 
$
149,398

 
$
117,581

 
27.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
ADDITIONAL DATA
 
 
 
 
 
 
 
 
 
 
 
Net earnings per share - basic
$
0.52

 
$
0.52

 
 
 
$
1.52

 
$
1.37

 
 
Net earnings per share - diluted
$
0.51

 
$
0.51

 
 
 
$
1.51

 
$
1.36

 
 
Dividends declared per share
$
0.23

 
$
0.20

 
 
 
$
0.67

 
$
0.58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.41
%
 
1.45
%
 
 
 
1.41
%
 
1.29
%
 
 
Return on average shareholders' equity
9.13
%
 
9.94
%
 
 
 
9.29
%
 
9.50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
153,645

 
$
149,220

 
3.0
 %
 
$
459,927

 
$
386,953

 
18.9
 %
Tax equivalent adjustment
1,759

 
1,567

 
12.3
 %
 
4,698

 
3,705

 
26.8
 %
   Interest income - tax equivalent
155,404

 
150,787

 
3.1
 %
 
464,625

 
390,658

 
18.9
 %
Interest expense
32,110

 
25,735

 
24.8
 %
 
94,575

 
63,677

 
48.5
 %
   Net interest income - tax equivalent
$
123,294

 
$
125,052

 
(1.4
)%
 
$
370,050

 
$
326,981

 
13.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
3.91
%
 
4.06
%
 
 
 
3.98
%
 
4.01
%
 
 
Net interest margin (fully tax equivalent) (1)
3.96
%
 
4.12
%
 
 
 
4.03
%
 
4.06
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Full-time equivalent employees
2,064

 
2,028

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

3

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
2019
 
Third
 
Second
 
First
 
Full
 
% Change
 
Quarter
 
Quarter
 
Quarter
 
Year
 
Linked Qtr.
Interest income
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
126,786

 
$
126,365

 
$
123,056

 
$
376,207

 
0.3
 %
  Investment securities
 
 
 
 
 
 
 
 
 
     Taxable
22,180

 
23,616

 
24,235

 
70,031

 
(6.1
)%
     Tax-exempt
4,457

 
4,336

 
4,258

 
13,051

 
2.8
 %
        Total investment securities interest
26,637

 
27,952

 
28,493

 
83,082

 
(4.7
)%
  Other earning assets
222

 
206

 
210

 
638

 
7.8
 %
       Total interest income
153,645

 
154,523

 
151,759

 
459,927

 
(0.6
)%
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
  Deposits
20,151

 
20,612

 
19,243

 
60,006

 
(2.2
)%
  Short-term borrowings
7,199

 
6,646

 
5,960

 
19,805

 
8.3
 %
  Long-term borrowings
4,760

 
4,963

 
5,041

 
14,764

 
(4.1
)%
      Total interest expense
32,110

 
32,221

 
30,244

 
94,575

 
(0.3
)%
      Net interest income
121,535

 
122,302

 
121,515

 
365,352

 
(0.6
)%
  Provision for loan and lease losses
5,228

 
6,658

 
14,083

 
25,969

 
(21.5
)%
      Net interest income after provision for loan and lease losses
116,307

 
115,644

 
107,432

 
339,383

 
0.6
 %
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
9,874

 
9,819

 
8,903

 
28,596

 
0.6
 %
  Trust and wealth management fees
3,718

 
3,943

 
4,070

 
11,731

 
(5.7
)%
  Bankcard income
3,316

 
6,497

 
5,586

 
15,399

 
(49.0
)%
  Client derivative fees
4,859

 
4,905

 
1,704

 
11,468

 
(0.9
)%
  Foreign exchange income
1,708

 
17

 
0

 
1,725

 
N/M

  Net gains from sales of loans
4,806

 
3,432

 
1,890

 
10,128

 
40.0
 %
  Net gains (losses) on sale of investment securities
105

 
(37
)
 
(178
)
 
(110
)
 
383.8
 %
  Other
4,754

 
6,062

 
4,852

 
15,668

 
(21.6
)%
      Total noninterest income
33,140

 
34,638

 
26,827

 
94,605

 
(4.3
)%
 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
53,212

 
53,985

 
47,912

 
155,109

 
(1.4
)%
  Net occupancy
5,509

 
5,596

 
6,630

 
17,735

 
(1.6
)%
  Furniture and equipment
4,120

 
4,222

 
3,416

 
11,758

 
(2.4
)%
  Data processing
5,774

 
4,984

 
5,127

 
15,885

 
15.9
 %
  Marketing
1,346

 
1,976

 
1,606

 
4,928

 
(31.9
)%
  Communication
910

 
747

 
728

 
2,385

 
21.8
 %
  Professional services
4,771

 
2,039

 
2,252

 
9,062

 
134.0
 %
  State intangible tax
1,445

 
1,307

 
1,310

 
4,062

 
10.6
 %
  FDIC assessments
(1,097
)
 
1,065

 
950

 
918

 
(203.0
)%
  Intangible amortization
2,432

 
2,044

 
2,045

 
6,521

 
19.0
 %
  Other
7,804

 
6,413

 
6,523

 
20,740

 
21.7
 %
      Total noninterest expenses
86,226

 
84,378

 
78,499

 
249,103

 
2.2
 %
Income before income taxes
63,221

 
65,904

 
55,760

 
184,885

 
(4.1
)%
Income tax expense
12,365

 
13,201

 
9,921

 
35,487

 
(6.3
)%
      Net income
$
50,856

 
$
52,703

 
$
45,839

 
$
149,398

 
(3.5
)%
 
 
 
 
 
 
 
 
 
 
ADDITIONAL DATA
 
 
 
 
 
 
 
 
 
Net earnings per share - basic
$
0.52

 
$
0.54

 
$
0.47

 
$
1.52

 
 
Net earnings per share - diluted
$
0.51

 
$
0.53

 
$
0.47

 
$
1.51

 
 
Dividends declared per share
$
0.23

 
$
0.22

 
$
0.22

 
$
0.67

 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.41
%
 
1.50
%
 
1.33
%
 
1.41
%
 
 
Return on average shareholders' equity
9.13
%
 
9.85
%
 
8.88
%
 
9.29
%
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
153,645

 
$
154.523

 
$
151,759

 
$
459,927

 
(0.6
)%
Tax equivalent adjustment
1,759

 
1.416

 
1,523

 
4,698

 
24.2
 %
   Interest income - tax equivalent
155,404

 
155.939

 
153,282

 
464,625

 
(0.3
)%
Interest expense
32,110

 
32.221

 
30,244

 
94,575

 
(0.3
)%
   Net interest income - tax equivalent
$
123,294

 
$
123.718

 
$
123,038

 
$
370,050

 
(0.3
)%
 
 
 
 
 
 
 
 
 
 
Net interest margin
3.91
%
 
3.99
%
 
4.05
%
 
3.98
%
 
 
Net interest margin (fully tax equivalent) (1)
3.96
%
 
4.04
%
 
4.10
%
 
4.03
%
 
 
 
 
 
 
 
 
 
 
 
 
Full-time equivalent employees
2,064

 
2,076

 
2,087

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

4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
2018
 
Fourth
 
Third
 
Second
 
First
 
Full
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Year
Interest income
 
 
 
 
 
 
 
 
 
  Loans and leases, including fees
$
126,580

 
$
123,397

 
$
122,290

 
$
74,920

 
$
447,187

  Investment securities
 
 
 
 
 
 
 
 
 
     Taxable
22,761

 
21,801

 
20,844

 
13,670

 
79,076

     Tax-exempt
3,896

 
3,807

 
4,068

 
1,657

 
13,428

        Total investment securities interest
26,657

 
25,608

 
24,912

 
15,327

 
92,504

  Other earning assets
192

 
215

 
177

 
107

 
691

       Total interest income
153,429

 
149,220

 
147,379

 
90,354

 
540,382

 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
  Deposits
17,198

 
14,672

 
14,794

 
10,298

 
56,962

  Short-term borrowings
5,186

 
6,052

 
4,132

 
2,663

 
18,033

  Long-term borrowings
5,086

 
5,011

 
4,474

 
1,581

 
16,152

      Total interest expense
27,470

 
25,735

 
23,400

 
14,542

 
91,147

      Net interest income
125,959

 
123,485

 
123,979

 
75,812

 
449,235

  Provision for loan and lease losses
5,310

 
3,238

 
3,735

 
2,303

 
14,586

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

 
120,247

 
120,244

 
73,509

 
434,649

 
 
 
 
 
 
 
 
 


Noninterest income
 
 
 
 
 
 
 
 
 
  Service charges on deposit accounts
10,185

 
10,316

 
9,568

 
5,039

 
35,108

  Trust and wealth management fees
3,703

 
3,728

 
3,697

 
3,954

 
15,082

  Bankcard income
6,247

 
5,261

 
5,343

 
3,394

 
20,245

  Client derivative fees
1,433

 
3,029

 
1,463

 
1,757

 
7,682

  Net gains from sales of loans
1,428

 
1,739

 
2,316

 
588

 
6,071

  Net gains on sale of investment securities
36

 
(167
)
 
(30
)
 
0

 
(161
)
  Other
6,472

 
4,778

 
5,899

 
2,206

 
19,355

      Total noninterest income
29,504

 
28,684

 
28,256

 
16,938

 
103,382

 
 
 
 
 
 
 
 
 
 
Noninterest expenses
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
51,505

 
50,852

 
55,531

 
31,102

 
188,990

  Net occupancy
6,322

 
6,765

 
6,631

 
4,497

 
24,215

  Furniture and equipment
3,498

 
4,072

 
5,298

 
2,040

 
14,908

  Data processing
5,599

 
4,502

 
14,304

 
3,672

 
28,077

  Marketing
1,651

 
2,502

 
2,644

 
801

 
7,598

  Communication
805

 
785

 
1,118

 
459

 
3,167

  Professional services
1,794

 
2,621

 
5,659

 
2,198

 
12,272

  State intangible tax
1,086

 
1,223

 
1,078

 
765

 
4,152

  FDIC assessments
1,018

 
734

 
1,323

 
894

 
3,969

  Intangible amortization
2,229

 
2,486

 
2,364

 
280

 
7,359

  Other
7,845

 
8,873

 
6,805

 
5,580

 
29,103

      Total noninterest expenses
83,352

 
85,415

 
102,755

 
52,288

 
323,810

Income before income taxes
66,801

 
63,516

 
45,745

 
38,159

 
214,221

Income tax expense (benefit)
11,787

 
12,859

 
9,327

 
7,653

 
41,626

      Net income
$
55,014

 
$
50,657

 
$
36,418

 
$
30,506

 
$
172,595

 
 
 
 
 
 
 
 
 


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

Tax equivalent adjustment
1,442

 
1,567

 
1,420

 
718

 
5,147

   Interest income - tax equivalent
154,871

 
150,787

 
148,799

 
91,072

 
545,529

Interest expense
27,470

 
25,735

 
23,400

 
14,542

 
91,147

   Net interest income - tax equivalent
$
127,401

 
$
125,052

 
$
125,399

 
$
76,530

 
$
454,382

 
 
 
 
 
 
 
 
 
 
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. 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
 
2019
 
2019
 
2019
 
2018
 
2018
 
Linked Qtr.
 
Comp Qtr.
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
     Cash and due from banks
$
242,482

 
$
169,694

 
$
169,004

 
$
236,221

 
$
193,288

 
42.9
 %
 
25.5
 %
     Interest-bearing deposits with other banks
39,669

 
101,668

 
50,224

 
37,738

 
28,989

 
(61.0
)%
 
36.8
 %
     Investment securities available-for-sale
2,850,502

 
3,152,970

 
3,113,811

 
2,779,255

 
2,626,726

 
(9.6
)%
 
8.5
 %
     Investment securities held-to-maturity
148,778

 
154,327

 
158,305

 
429,328

 
434,369

 
(3.6
)%
 
(65.7
)%
     Other investments
124,965

 
127,439

 
115,731

 
115,660

 
115,757

 
(1.9
)%
 
8.0
 %
     Loans held for sale
23,528

 
20,244

 
8,217

 
4,372

 
13,277

 
16.2
 %
 
77.2
 %
     Loans and leases
 
 
 
 
 
 
 
 
 
 
 
 
 
       Commercial and industrial
2,470,017

 
2,547,997

 
2,543,427

 
2,514,661

 
2,426,590

 
(3.1
)%
 
1.8
 %
       Lease financing
92,616

 
90,638

 
95,573

 
93,415

 
95,317

 
2.2
 %
 
(2.8
)%
       Construction real estate
515,960

 
497,683

 
458,113

 
548,935

 
565,077

 
3.7
 %
 
(8.7
)%
       Commercial real estate
4,015,908

 
3,903,654

 
3,802,179

 
3,754,681

 
3,868,143

 
2.9
 %
 
3.8
 %
       Residential real estate
1,055,007

 
1,015,820

 
975,120

 
955,646

 
932,962

 
3.9
 %
 
13.1
 %
       Home equity
776,885

 
787,139

 
797,118

 
817,282

 
816,133

 
(1.3
)%
 
(4.8
)%
       Installment
88,275

 
89,149

 
90,689

 
93,212

 
97,413

 
(1.0
)%
 
(9.4
)%
       Credit card
49,010

 
48,706

 
46,982

 
46,382

 
45,741

 
0.6
 %
 
7.1
 %
          Total loans
9,063,678

 
8,980,786

 
8,809,201

 
8,824,214

 
8,847,376

 
0.9
 %
 
2.4
 %
       Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
          Allowance for loan and lease losses
56,552

 
61,549

 
56,722

 
56,542

 
57,715

 
(8.1
)%
 
(2.0
)%
                Net loans
9,007,126

 
8,919,237

 
8,752,479

 
8,767,672

 
8,789,661

 
1.0
 %
 
2.5
 %
     Premises and equipment
213,681

 
211,313

 
210,676

 
215,652

 
219,940

 
1.1
 %
 
(2.8
)%
     Goodwill
937,689

 
879,727

 
879,727

 
880,251

 
881,033

 
6.6
 %
 
6.4
 %
     Other intangibles
79,506

 
36,349

 
38,571

 
40,805

 
43,356

 
118.7
 %
 
83.4
 %
     Accrued interest and other assets
812,519

 
664,695

 
577,518

 
479,706

 
496,271

 
22.2
 %
 
63.7
 %
       Total Assets
$
14,480,445

 
$
14,437,663

 
$
14,074,263

 
$
13,986,660

 
$
13,842,667

 
0.3
 %
 
4.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
     Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
       Interest-bearing demand
$
2,316,301

 
$
2,332,692

 
$
2,235,036

 
$
2,307,071

 
$
2,284,271

 
(0.7
)%
 
1.4
 %
       Savings
2,924,200

 
2,953,114

 
3,100,894

 
3,167,325

 
3,134,944

 
(1.0
)%
 
(6.7
)%
       Time
2,308,617

 
2,321,908

 
2,309,810

 
2,173,564

 
1,957,574

 
(0.6
)%
 
17.9
 %
          Total interest-bearing deposits
7,549,118

 
7,607,714

 
7,645,740

 
7,647,960

 
7,376,789

 
(0.8
)%
 
2.3
 %
       Noninterest-bearing
2,534,739

 
2,501,290

 
2,488,157

 
2,492,434

 
2,375,845

 
1.3
 %
 
6.7
 %
          Total deposits
10,083,857

 
10,109,004

 
10,133,897

 
10,140,394

 
9,752,634

 
(0.2
)%
 
3.4
 %
     Federal funds purchased and securities sold
 
 
 
 
 
 
 
 
 
 
 
 
 
         under agreements to repurchase
85,286

 
260,621

 
95,015

 
183,591

 
123,452

 
(67.3
)%
 
(30.9
)%
     FHLB short-term borrowings
1,128,900

 
1,052,700

 
952,400

 
857,100

 
1,170,800

 
7.2
 %
 
(3.6
)%
          Total short-term borrowings
1,214,186

 
1,313,321

 
1,047,415

 
1,040,691

 
1,294,252

 
(7.5
)%
 
(6.2
)%
     Long-term debt
498,778

 
547,042

 
546,423

 
570,739

 
570,037

 
(8.8
)%
 
(12.5
)%
          Total borrowed funds
1,712,964

 
1,860,363

 
1,593,838

 
1,611,430

 
1,864,289

 
(7.9
)%
 
(8.1
)%
     Accrued interest and other liabilities
422,311

 
280,107

 
216,109

 
156,587

 
190,224

 
50.8
 %
 
122.0
 %
       Total Liabilities
12,219,132

 
12,249,474

 
11,943,844

 
11,908,411

 
11,807,147

 
(0.2
)%
 
3.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
     Common stock
1,639,333

 
1,623,699

 
1,622,554

 
1,633,256

 
1,633,828

 
1.0
 %
 
0.3
 %
     Retained earnings
685,368

 
657,730

 
626,408

 
600,014

 
564,545

 
4.2
 %
 
21.4
 %
     Accumulated other comprehensive income (loss)
15,450

 
5,193

 
(19,635
)
 
(44,408
)
 
(52,897
)
 
197.5
 %
 
(129.2
)%
     Treasury stock, at cost
(78,838
)
 
(98,433
)
 
(98,908
)
 
(110,613
)
 
(109,956
)
 
(19.9
)%
 
(28.3
)%
       Total Shareholders' Equity
2,261,313

 
2,188,189

 
2,130,419

 
2,078,249

 
2,035,520

 
3.3
 %
 
11.1
 %
       Total Liabilities and Shareholders' Equity
$
14,480,445

 
$
14,437,663

 
$
14,074,263

 
$
13,986,660

 
$
13,842,667

 
0.3
 %
 
4.6
 %


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,
 
2019
 
2019
 
2019
 
2018
 
2018
 
2019
 
2018
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
     Cash and due from banks
$
191,000

 
$
173,278

 
$
181,695

 
$
213,927

 
$
199,843

 
$
182,025

 
$
180,561

     Federal funds sold
0

 
0

 
0

 
0

 
0

 
0

 
262

     Interest-bearing deposits with other banks
38,569

 
33,255

 
34,709

 
32,013

 
39,873

 
35,525

 
31,854

     Investment securities
3,290,666

 
3,408,994

 
3,355,732

 
3,204,758

 
3,168,044

 
3,351,559

 
2,793,510

     Loans held for sale
18,197

 
13,258

 
6,392

 
10,411

 
15,270

 
12,659

 
12,990

     Loans and leases

 

 
 
 
 
 
 
 
 
 
 
       Commercial and industrial
2,509,782

 
2,533,981

 
2,509,274

 
2,402,296

 
2,392,229

 
2,517,681

 
2,238,878

       Lease financing
94,858

 
94,458

 
91,043

 
94,111

 
94,030

 
93,467

 
91,765

       Construction real estate
509,742

 
457,962

 
496,153

 
567,086

 
570,125

 
488,002

 
544,295

       Commercial real estate
3,925,028

 
3,834,404

 
3,762,314

 
3,793,376

 
3,887,748

 
3,841,178

 
3,440,811

       Residential real estate
1,035,975

 
989,923

 
961,584

 
941,047

 
918,361

 
996,100

 
773,941

       Home equity
781,340

 
789,087

 
807,768

 
813,779

 
822,834

 
792,635

 
712,944

       Installment
88,760

 
89,778

 
91,270

 
95,779

 
99,907

 
89,927

 
80,289

       Credit card
50,410

 
49,811

 
47,512

 
48,417

 
48,206

 
49,255

 
47,329

          Total loans
8,995,895

 
8,839,404

 
8,766,918

 
8,755,891

 
8,833,440

 
8,868,245

 
7,930,252

       Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
          Allowance for loan and lease losses
61,911

 
58,335

 
57,088

 
58,216

 
55,877

 
59,129

 
55,407

                Net loans
8,933,984

 
8,781,069

 
8,709,830

 
8,697,675

 
8,777,563

 
8,809,116

 
7,874,845

     Premises and equipment
215,671

 
211,714

 
213,208

 
218,430

 
222,718

 
213,540

 
193,424

     Goodwill
899,888

 
879,726

 
878,541

 
878,669

 
882,917

 
886,130

 
659,213

     Other intangibles
51,365

 
37,666

 
39,900

 
42,305

 
43,830

 
43,019

 
30,776

     Accrued interest and other assets
681,174

 
563,773

 
532,544

 
470,770

 
472,617

 
593,042

 
443,923

       Total Assets
$
14,320,514

 
$
14,102,733

 
$
13,952,551

 
$
13,768,958

 
$
13,822,675

 
$
14,126,615

 
$
12,221,358

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
     Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
       Interest-bearing demand
$
2,325,405

 
$
2,334,322

 
$
2,269,948

 
$
2,342,528

 
$
2,334,305

 
$
2,310,095

 
$
2,111,051

       Savings
2,945,076

 
3,057,100

 
3,115,557

 
3,156,789

 
3,149,871

 
3,038,620

 
2,934,770

       Time
2,234,227

 
2,220,724

 
2,224,587

 
2,073,752

 
2,014,936

 
2,226,548

 
1,893,200

          Total interest-bearing deposits
7,504,708

 
7,612,146

 
7,610,092

 
7,573,069

 
7,499,112

 
7,575,263

 
6,939,021

       Noninterest-bearing
2,513,458

 
2,484,214

 
2,457,587

 
2,476,773

 
2,388,976

 
2,485,291

 
2,129,924

          Total deposits
10,018,166

 
10,096,360

 
10,067,679

 
10,049,842

 
9,888,088

 
10,060,554

 
9,068,945

     Federal funds purchased and securities sold
 
 
 
 
 
 
 
 
 
 
 
 
 
          under agreements to repurchase
185,156

 
126,872

 
103,147

 
65,805

 
112,308

 
138,692

 
94,438

     FHLB short-term borrowings
1,112,091

 
982,993

 
913,974

 
873,533

 
1,076,106

 
1,003,745

 
855,715

          Total short-term borrowings
1,297,247

 
1,109,865

 
1,017,121

 
939,338

 
1,188,414

 
1,142,437

 
950,153

     Long-term debt
519,736

 
546,705

 
569,947

 
570,304

 
560,001

 
545,279

 
394,172

       Total borrowed funds
1,816,983

 
1,656,570

 
1,587,068

 
1,509,642

 
1,748,415

 
1,687,716

 
1,344,325

     Accrued interest and other liabilities
275,038

 
202,806

 
203,570

 
166,590

 
164,772

 
227,400

 
153,766

       Total Liabilities
12,110,187

 
11,955,736

 
11,858,317

 
11,726,074

 
11,801,275

 
11,975,670

 
10,567,036

 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
     Common stock
1,629,286

 
1,622,994

 
1,625,228

 
1,632,361

 
1,633,129

 
1,625,851

 
1,283,421

     Retained earnings
662,899

 
635,629

 
610,737

 
576,145

 
542,835

 
636,613

 
521,320

     Accumulated other comprehensive loss
11,985

 
(12,889
)
 
(39,796
)
 
(55,161
)
 
(44,505
)
 
(13,377
)
 
(39,010
)
     Treasury stock, at cost
(93,843
)
 
(98,737
)
 
(101,935
)
 
(110,461
)
 
(110,059
)
 
(98,142
)
 
(111,409
)
       Total Shareholders' Equity
2,210,327

 
2,146,997

 
2,094,234

 
2,042,884

 
2,021,400

 
2,150,945

 
1,654,322

       Total Liabilities and Shareholders' Equity
$
14,320,514

 
$
14,102,733

 
$
13,952,551

 
$
13,768,958

 
$
13,822,675

 
$
14,126,615

 
$
12,221,358

 
 
 
 
 
 
 
 
 
 
 
 
 
 


7


FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 
 
 
 
 
 
 
 Quarterly Averages
 
Year-to-Date Averages
 
 
September 30, 2019
 
June 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
 
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
 
Balance
 
Yield
Earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment securities
 
$
3,290,666

 
3.21
%
 
$
3,408,994

 
3.29
%
 
$
3,168,044

 
3.21
%
 
$
3,351,559

 
3.31
%
 
$
2,793,510

 
3.15
%
      Interest-bearing deposits with other banks
 
38,569

 
2.28
%
 
33,255

 
2.48
%
 
39,873

 
2.14
%
 
35,525

 
2.40
%
 
32,116

 
2.08
%
    Gross loans (1)
 
9,014,092

 
5.58
%
 
8,852,662

 
5.73
%
 
8,848,710

 
5.53
%
 
8,880,904

 
5.66
%
 
7,943,737

 
5.40
%
       Total earning assets
 
12,343,327

 
4.94
%
 
12,294,911

 
5.04
%
 
12,056,627

 
4.91
%
 
12,267,988

 
5.01
%
 
10,769,363

 
4.80
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonearning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Allowance for loan and lease losses
 
(61,911
)
 
 
 
(58,335
)
 
 
 
(55,877
)
 
 
 
(59,129
)
 
 
 
(55,407
)
 
 
    Cash and due from banks
 
191,000

 
 
 
173,278

 
 
 
199,843

 
 
 
182,025

 
 
 
180,561

 
 
    Accrued interest and other assets
 
1,848,098

 
 
 
1,692,879

 
 
 
1,622,082

 
 
 
1,735,731

 
 
 
1,326,841

 
 
       Total assets
 
$
14,320,514

 
 
 
$
14,102,733

 
 
 
$
13,822,675

 
 
 
$
14,126,615

 
 
 
$
12,221,358

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Interest-bearing demand
 
$
2,325,405

 
0.56
%
 
$
2,334,322

 
0.60
%
 
$
2,334,305

 
0.34
%
 
$
2,310,095

 
0.55
%
 
$
2,111,051

 
0.36
%
      Savings
 
2,945,076

 
0.69
%
 
3,057,100

 
0.78
%
 
3,149,871

 
0.59
%
 
3,038,620

 
0.74
%
 
2,934,770

 
0.58
%
      Time
 
2,234,227

 
2.09
%
 
2,220,724

 
2.02
%
 
2,014,936

 
1.58
%
 
2,226,548

 
2.02
%
 
1,893,200

 
1.51
%
    Total interest-bearing deposits
 
7,504,708

 
1.07
%
 
7,612,146

 
1.09
%
 
7,499,112

 
0.78
%
 
7,575,263

 
1.06
%
 
6,939,021

 
0.77
%
    Borrowed funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Short-term borrowings
 
1,297,247

 
2.20
%
 
1,109,865

 
2.40
%
 
1,188,414

 
2.02
%
 
1,142,437

 
2.32
%
 
950,153

 
1.81
%
      Long-term debt
 
519,736

 
3.63
%
 
546,705

 
3.64
%
 
560,001

 
3.55
%
 
545,279

 
3.62
%
 
394,172

 
3.75
%
        Total borrowed funds
 
1,816,983

 
2.61
%
 
1,656,570

 
2.81
%
 
1,748,415

 
2.51
%
 
1,687,716

 
2.74
%
 
1,344,325

 
2.38
%
       Total interest-bearing liabilities
 
9,321,691

 
1.37
%
 
9,268,716

 
1.39
%
 
9,247,527

 
1.10
%
 
9,262,979

 
1.37
%
 
8,283,346

 
1.03
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Noninterest-bearing demand deposits
 
2,513,458

 
 
 
2,484,214

 
 
 
2,388,976

 
 
 
2,485,291

 
 
 
2,129,924

 
 
    Other liabilities
 
275,038

 
 
 
202,806

 
 
 
164,772

 
 
 
227,400

 
 
 
153,766

 
 
    Shareholders' equity
 
2,210,327

 
 
 
2,146,997

 
 
 
2,021,400

 
 
 
2,150,945

 
 
 
1,654,322

 
 
       Total liabilities & shareholders' equity
 
$
14,320,514

 
 
 
$
14,102,733

 
 
 
$
13,822,675

 
 
 
$
14,126,615

 
 
 
$
12,221,358

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
121,535

 
 
 
$
122,302

 
 
 
$
123,485

 
 
 
$
365,352

 

 
$
323,276

 

Net interest spread
 
 
 
3.57
%
 
 
 
3.65
%
 
 
 
3.81
%
 
 
 
3.64
%
 
 
 
3.77
%
Net interest margin
 
 
 
3.91
%
 
 
 
3.99
%
 
 
 
4.06
%
 
 
 
3.98
%
 
 
 
4.01
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax equivalent adjustment
 
 
 
0.05
%
 
 
 
0.05
%
 
 
 
0.06
%
 
 
 
0.05
%
 
 
 
0.05
%
Net interest margin (fully tax equivalent)
 
 
 
3.96
%
 
 
 
4.04
%
 
 
 
4.12
%
 
 
 
4.03
%
 
 
 
4.06
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Loans held for sale and nonaccrual loans 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
 
$
(657
)
 
$
(658
)
 
$
(1,315
)
 
$
36

 
$
993

 
$
1,029

 
$
3,401

 
$
13,834

 
$
17,235

    Interest-bearing deposits with other banks
 
(17
)
 
33

 
16

 
15

 
(8
)
 
7

 
78

 
61

 
139

    Gross loans (2)
 
(3,203
)
 
3,624

 
421

 
1,063

 
2,326

 
3,389

 
15,900

 
39,700

 
55,600

       Total earning assets
 
(3,877
)
 
2,999

 
(878
)
 
1,114

 
3,311

 
4,425

 
19,379

 
53,595

 
72,974

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Total interest-bearing deposits
 
$
(395
)
 
$
(66
)
 
$
(461
)
 
$
5,464

 
$
15

 
$
5,479

 
$
15,202

 
$
5,040

 
$
20,242

    Borrowed funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Short-term borrowings
 
(554
)
 
1,107

 
553

 
543

 
604

 
1,147

 
3,625

 
3,333

 
6,958

    Long-term debt
 
(10
)
 
(193
)
 
(203
)
 
118

 
(369
)
 
(251
)
 
(393
)
 
4,091

 
3,698

       Total borrowed funds
 
(564
)
 
914

 
350

 
661

 
235

 
896

 
3,232

 
7,424

 
10,656

       Total interest-bearing liabilities
 
(959
)
 
848

 
(111
)
 
6,125

 
250

 
6,375

 
18,434

 
12,464

 
30,898

          Net interest income (1)
 
$
(2,918
)
 
$
2,151

 
$
(767
)
 
$
(5,011
)
 
$
3,061

 
$
(1,950
)
 
$
945

 
$
41,131

 
$
42,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Not tax equivalent.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Loans held for sale and nonaccrual loans 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,
 
2019
 
2019
 
2019
 
2018
 
2018
 
2019
 
2018
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
61,549

 
$
56,722

 
$
56,542

 
$
57,715

 
$
54,076

 
$
56,542

 
$
54,021

  Provision for loan and lease losses
5,228

 
6,658

 
14,083

 
5,310

 
3,238

 
25,969

 
9,276

  Gross charge-offs
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
9,556

 
1,873

 
12,328

 
6,060

 
232

 
23,757

 
5,473

    Lease financing
0

 
0

 
100

 
0

 
0

 
100

 
0

    Construction real estate
0

 
0

 
0

 
0

 
0

 
0

 
0

    Commercial real estate
535

 
86

 
1,214

 
1,679

 
902

 
1,835

 
3,156

    Residential real estate
278

 
150

 
82

 
80

 
145

 
510

 
342

    Home equity
627

 
689

 
468

 
747

 
351

 
1,784

 
978

    Installment
65

 
78

 
49

 
158

 
43

 
192

 
277

    Credit card
598

 
289

 
341

 
392

 
390

 
1,228

 
1,328

      Total gross charge-offs
11,659

 
3,165

 
14,582

 
9,116

 
2,063

 
29,406

 
11,554

  Recoveries
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
556

 
291

 
240

 
485

 
627

 
1,087

 
1,581

    Lease financing
0

 
0

 
0

 
0

 
0

 
0

 
1

    Construction real estate
0

 
5

 
63

 
0

 
146

 
68

 
146

    Commercial real estate
347

 
254

 
73

 
1,681

 
786

 
674

 
2,425

    Residential real estate
64

 
101

 
36

 
44

 
71

 
201

 
167

    Home equity
335

 
572

 
185

 
274

 
419

 
1,092

 
1,035

    Installment
93

 
61

 
48

 
94

 
351

 
202

 
481

    Credit card
39

 
50

 
34

 
55

 
64

 
123

 
136

      Total recoveries
1,434

 
1,334

 
679

 
2,633

 
2,464

 
3,447

 
5,972

  Total net charge-offs
10,225

 
1,831

 
13,903

 
6,483

 
(401
)
 
25,959

 
5,582

Ending allowance for loan and lease losses
$
56,552

 
$
61,549

 
$
56,722

 
$
56,542

 
$
57,715

 
$
56,552

 
$
57,715

 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
 
 
 
 
 
 
 
 
 
 
  Commercial and industrial
1.42
 %
 
0.25
 %
 
1.95
 %
 
0.92
 %
 
(0.07
)%
 
1.20
 %
 
0.23
 %
  Lease financing
0.00
 %
 
0.00
 %
 
0.45
 %
 
0.00
 %
 
0.00
 %
 
0.14
 %
 
0.00
 %
  Construction real estate
0.00
 %
 
0.00
 %
 
(0.05
)%
 
0.00
 %
 
(0.10
)%
 
(0.02
)%
 
(0.04
)%
  Commercial real estate
0.02
 %
 
(0.02
)%
 
0.12
 %
 
0.00
 %
 
0.01
 %
 
0.04
 %
 
0.03
 %
  Residential real estate
0.08
 %
 
0.02
 %
 
0.02
 %
 
0.02
 %
 
0.03
 %
 
0.04
 %
 
0.03
 %
  Home equity
0.15
 %
 
0.06
 %
 
0.14
 %
 
0.23
 %
 
(0.03
)%
 
0.12
 %
 
(0.01
)%
  Installment
(0.13
)%
 
0.08
 %
 
0.00
 %
 
0.27
 %
 
(1.22
)%
 
(0.01
)%
 
(0.34
)%
  Credit card
4.40
 %
 
1.92
 %
 
2.62
 %
 
2.76
 %
 
2.68
 %
 
3.00
 %
 
3.37
 %
     Total net charge-offs
0.45
 %
 
0.08
 %
 
0.64
 %
 
0.29
 %
 
(0.02
)%
 
0.39
 %
 
0.09
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
 
 
  Nonaccrual loans (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
    Commercial and industrial
$
28,358

 
$
18,502

 
$
19,263

 
$
30,925

 
$
4,310

 
$
28,358

 
$
4,310

    Lease financing
284

 
295

 
301

 
22

 
0

 
284

 
0

    Construction real estate
5

 
6

 
7

 
9

 
10

 
5

 
10

    Commercial real estate
14,889

 
15,981

 
21,082

 
20,500

 
20,338

 
14,889

 
20,338

    Residential real estate
11,655

 
11,627

 
13,052

 
13,495

 
11,365

 
11,655

 
11,365

    Home equity
5,427

 
4,745

 
5,581

 
5,580

 
6,018

 
5,427

 
6,018

    Installment
75

 
195

 
170

 
169

 
327

 
75

 
327

      Nonaccrual loans
60,693

 
51,351

 
59,456

 
70,700

 
42,368

 
60,693

 
42,368

  Accruing troubled debt restructurings (TDRs)
18,450

 
37,420

 
22,817

 
16,109

 
20,313

 
18,450

 
20,313

     Total nonperforming loans
79,143

 
88,771

 
82,273

 
86,809

 
62,681

 
79,143

 
62,681

  Other real estate owned (OREO)
1,613

 
1,421

 
1,665

 
1,401

 
1,918

 
1,613

 
1,918

     Total nonperforming assets
80,756

 
90,192

 
83,938

 
88,210

 
64,599

 
80,756

 
64,599

  Accruing loans past due 90 days or more
287

 
107

 
178

 
63

 
144

 
287

 
144

     Total underperforming assets
$
81,043

 
$
90,299

 
$
84,116

 
$
88,273

 
$
64,743


$
81,043

 
$
64,743

Total classified assets
$
132,500

 
$
147,753

 
$
142,014

 
$
131,668

 
$
138,868

 
$
132,500

 
$
138,868

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Nonaccrual loans
93.18
 %
 
119.86
 %
 
95.40
 %
 
79.97
 %
 
136.22
 %
 
93.18
 %
 
136.22
 %
     Nonperforming loans
71.46
 %
 
69.33
 %
 
68.94
 %
 
65.13
 %
 
92.08
 %
 
71.46
 %
 
92.08
 %
     Total ending loans
0.62
 %
 
0.69
 %
 
0.64
 %
 
0.64
 %
 
0.65
 %
 
0.62
 %
 
0.65
 %
Nonperforming loans to total loans
0.87
 %
 
0.99
 %
 
0.93
 %
 
0.98
 %
 
0.71
 %
 
0.87
 %
 
0.71
 %
Nonperforming assets to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Ending loans, plus OREO
0.89
 %
 
1.00
 %
 
0.95
 %
 
1.00
 %
 
0.73
 %
 
0.89
 %
 
0.73
 %
     Total assets
0.56
 %
 
0.62
 %
 
0.60
 %
 
0.63
 %
 
0.47
 %
 
0.56
 %
 
0.47
 %
Nonperforming assets, excluding accruing TDRs to
 
 
 
 
 
 
 
 
 
 
 
 
 
     Ending loans, plus OREO
0.69
 %
 
0.59
 %
 
0.69
 %
 
0.82
 %
 
0.50
 %
 
0.69
 %
 
0.50
 %
     Total assets
0.43
 %
 
0.37
 %
 
0.43
 %
 
0.52
 %
 
0.32
 %
 
0.43
 %
 
0.32
 %
Classified assets to total assets
0.92
 %
 
1.02
 %
 
1.01
 %
 
0.94
 %
 
1.00
 %
 
0.92
 %
 
1.00
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Nonaccrual loans include nonaccrual TDRs of $21.5 million, $11.0 million, $13.1 million, $22.4 million, and $4.7 million, as of September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.
 
 
 
 
 

10


FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Nine months ended,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Sep. 30,
 
Sep. 30,
 
2019
 
2019
 
2019
 
2018
 
2018
 
2019
 
2018
PER COMMON SHARE
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Price
 
 
 
 
 
 
 
 
 
 
 
 
 
  High
$
25.49

 
$
25.80

 
$
28.56

 
$
29.58

 
$
32.35

 
$
28.56

 
$
33.55

  Low
$
22.37

 
$
22.16

 
$
23.02

 
$
22.40

 
$
29.40

 
$
22.16

 
$
26.40

  Close
$
24.48

 
$
24.22

 
$
24.06

 
$
23.72

 
$
29.70

 
$
24.48

 
$
29.70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shares outstanding - basic
98,517,025

 
98,083,799

 
97,926,088

 
97,424,839

 
97,411,201

 
98,177,802

 
85,602,116

Average shares outstanding - diluted
99,077,723

 
98,648,384

 
98,436,311

 
98,468,237

 
98,484,228

 
98,723,173

 
86,639,927

Ending shares outstanding
100,094,819

 
98,647,690

 
98,613,872

 
97,894,286

 
97,914,526

 
100,094,819

 
97,914,526

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders' equity
$
2,261,313

 
$
2,188,189

 
$
2,130,419

 
$
2,078,249

 
$
2,035,520

 
$
2,261,313

 
$
2,035,520

 
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL
Preliminary
 
 
 
 
 
 
 
 
 
Preliminary
 
 
Common equity tier 1 capital
$
1,253,803

 
$
1,281,406

 
$
1,246,004

 
$
1,215,613

 
$
1,177,630

 
$
1,253,803

 
$
1,177,630

Common equity tier 1 capital ratio
11.53
%
 
12.00
%
 
12.03
%
 
11.87
%
 
11.52
%
 
11.53
%
 
11.52
%
Tier 1 capital
$
1,296,399

 
$
1,323,905

 
$
1,287,757

 
$
1,257,366

 
$
1,219,383

 
$
1,296,399

 
$
1,219,383

Tier 1 ratio
11.93
%
 
12.40
%
 
12.43
%
 
12.28
%
 
11.93
%
 
11.93
%
 
11.93
%
Total capital
$
1,482,708

 
$
1,515,382

 
$
1,474,723

 
$
1,444,146

 
$
1,407,252

 
$
1,482,708

 
$
1,407,252

Total capital ratio
13.64
%
 
14.20
%
 
14.24
%
 
14.10
%
 
13.77
%
 
13.64
%
 
13.77
%
Total capital in excess of minimum requirement
$
341,261

 
$
394,571

 
$
387,048

 
$
432,832

 
$
397,783

 
$
341,261

 
$
397,783

Total risk-weighted assets
$
10,870,923

 
$
10,674,393

 
$
10,358,805

 
$
10,241,159

 
$
10,222,466

 
$
10,870,923

 
$
10,222,466

Leverage ratio
9.75
%
 
10.02
%
 
9.84
%
 
9.71
%
 
9.41
%
 
9.75
%
 
9.41
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending shareholders' equity to ending assets
15.62
%
 
15.16
%
 
15.14
%
 
14.86
%
 
14.70
%
 
15.62
%
 
14.70
%
Ending tangible shareholders' equity to ending tangible assets
9.17
%
 
9.34
%
 
9.15
%
 
8.79
%
 
8.53
%
 
9.17
%
 
8.53
%
Average shareholders' equity to average assets
15.43
%
 
15.22
%
 
15.01
%
 
14.84
%
 
14.62
%
 
15.23
%
 
13.54
%
Average tangible shareholders' equity to average tangible assets
9.35
%
 
9.26
%
 
8.95
%
 
8.66
%
 
8.42
%
 
9.19
%
 
8.31
%
REPURCHASE PROGRAM (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares repurchased
1,143,494

 
0

 
0

 
0

 
0

 
1,143,494

 
0

Average share repurchase price
$
23.94

 
N/A

 
N/A

 
N/A

 
N/A

 
$
23.94

 
N/A

Total cost of shares repurchased
$
27,372

 
N/A

 
N/A

 
N/A

 
N/A

 
$
27,372

 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents share repurchases as part of publicly announced plans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/A = Not applicable
 
 
 
 
 
 
 
 
 
 
 
 
 

11