CINCINNATI, July 22, 2021 /PRNewswire/ --

Earnings per diluted share of $0.52; $0.58 on an adjusted⁽¹⁾ basis
Return on average assets of 1.26%; 1.39% as adjusted⁽¹⁾
Net interest margin FTE⁽¹⁾ of 3.31%
Provision recapture of $4.2 million
Repurchased 1,308,945 shares during the quarter

First Financial Bancorp. (NASDAQ:FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2021.

For the three months ended June 30, 2021, the Company reported net income of $50.9 million, or $0.52 per diluted common share. These results compare to net income of $47.3 million, or $0.48 per diluted common share, for the first quarter of 2021 and $37.4 million, or $0.38 per diluted common share, for the second quarter of 2020. For the six months ended June 30, 2021, First Financial had earnings per diluted common share of $1.01 compared to $0.67 for the same period in 2020.

Return on average assets for the second quarter of 2021 was 1.26% while return on average tangible common equity was 16.31%⁽¹⁾. These compare to returns on average assets of 1.20% and 0.96%, and returns on average tangible common equity of 15.24%⁽¹⁾ and 12.90%⁽¹⁾, in the first quarter of 2021 and the second quarter of 2020, respectively.

Second quarter 2021 highlights include:

After adjustments⁽¹⁾ for certain nonrecurring items:

Net income of $0.58 per diluted common share
1.39% return on average assets
18.03% return on average tangible common equity

Net interest margin of 3.31% on a fully tax-equivalent basis⁽¹⁾ in line with expectations

9 basis point reduction from linked quarter driven by lower yields on earning assets and additional days during the second quarter

Noninterest income of $43.0 million, or $43.1 million as adjusted⁽¹⁾

Record foreign exchange income of $12.0 million; increased $1.3 million, or 11.9%, compared to linked quarter
Record wealth management fees of $6.2 million; increased $0.6 million, or 10.4%, compared to the linked quarter

Noninterest expenses of $99.6 million, or $91.8 million as adjusted⁽¹⁾

Adjustments⁽¹⁾ include:

$3.8 million of legal settlement costs
$2.8 million of branch consolidation costs
$1.2 million of tax credit investment write-downs

Efficiency ratio of 63.5%; 58.4% as adjusted⁽¹⁾

Loan balances declined during the quarter driven by $288.8 million of PPP forgiveness and elevated prepayments

⁽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.

Average transactional deposit balances grew $469.6 million compared to the linked quarter; 17.8% on an annualized basis
Total Allowance for Credit Losses of $173.1 million; Total quarterly provision recapture of $4.2 million

Loans and leases - ACL of $159.6 million, 1.68% of total loans; 1.75% of loans excluding PPP
Unfunded Commitments - ACL of $13.6 million
Provision recapture driven by improvements in economic conditions and classified asset balances, coupled with lower net charge-offs

Strong capital ratios

Total capital of 15.31%
Tier 1 common equity of 11.78%
Tangible common equity of 8.37%⁽¹⁾; 8.61%⁽¹⁾ excluding PPP loans
Tangible book value per share of $13.08⁽¹⁾; $0.30 increase compared to linked quarter
Repurchased 1,308,945 shares during second quarter; 2,149,060 shares repurchased in 2021

Archie Brown, President and Chief Executive Officer, commented, "We are very pleased to announce second quarter results that are highlighted by robust earnings, higher fee income, lower credit costs and improving credit trends."

Mr. Brown continued, "Our core quarterly financial metrics reflected the strong quarter with an adjusted⁽¹⁾ earnings per share of $0.58, adjusted⁽¹⁾ return on assets of 1.39%, and an adjusted⁽¹⁾ efficiency ratio of 58.4%. The quarterly performance was bolstered by higher fee revenue in interchange, and record revenue in Wealth Management and Bannockburn. Additionally, provision recapture during the period positively impacted our results, driven by improved credit quality trends, which included declines in net charge-offs and classified asset balances. We are optimistic about the economic environment and expect further reductions in credit costs in the coming periods."

Mr. Brown added, "We were pleased with a 23% increase in loan originations for the quarter, driven primarily by our core commercial markets, in addition to consumer and mortgage banking. Loan payoffs accelerated during the quarter in almost all commercial banking areas, with larger payoff amounts in Commercial Finance and ICRE driving an overall reduction in core loan balances for the quarter. Given the state of our loan pipeline, we expect originations to remain strong in the second half of the year, however we also anticipate higher payoffs to continue due to the amount of liquidity in the market. Average transactional deposits increased 18% on an annualized basis, as clients continued to build liquidity from recent government stimulus actions, however we believe these balances may have peaked as we began to experience some outflows late in the quarter. Our capital ratios remained strong and in excess of both internal and external targets. We also remained active in our share buyback program, repurchasing over 1 million shares during the quarter. When combined with the common dividend, the share repurchases approximate a return to shareholders of 98% of adjusted⁽¹⁾ quarterly earnings. We anticipate further share buyback activity in the third quarter, absent higher priority capital deployment alternatives."

Mr. Brown concluded, "Throughout the summer, the number of associates working in our offices has increased steadily in anticipation of a broader return, and we are very much looking forward to welcoming all of our associates back in the beginning of August. We have learned a great deal from the remote environment during the last 16 months and are excited to incorporate the best practices derived from that experience into our culture moving forward, including greater associate flexibility."

Full detail of the Company's second quarter 2021 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, July 23, 2021 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 10158382. 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.

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:

economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
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;
Management's ability to effectively execute its business plans;
mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
the effect of changes in accounting policies and practices;
changes in consumer spending, borrowing and saving and changes in unemployment;
changes in customers' performance and creditworthiness;
the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
our ability to develop and execute effective business plans and strategies.

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, 2020, 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 June 30, 2021, the Company had $16.0 billion in assets, $9.5 billion in loans, $12.5 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 $3.2 billion in assets under management as of June 30, 2021. The Company operated 139 full service banking centers as of June 30, 2021, primarily in Ohio, Indiana, Kentucky and Illinois, 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.

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended,															Six months ended,
	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,			June 30,
	2021			2021			2020			2020			2020			2021			2020
RESULTS OF OPERATIONS
Net income	$	50,888		$	47,315		$	48,312		$	41,477		$	37,393		$	98,203		$	66,021
Net earnings per share - basic	$	0.53		$	0.49		$	0.50		$	0.43		$	0.38		$	1.02		$	0.68
Net earnings per share - diluted	$	0.52		$	0.48		$	0.49		$	0.42		$	0.38		$	1.01		$	0.67
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.46		$	0.46

KEY FINANCIAL RATIOS
Return on average assets	1.26		%	1.20		%	1.20		%	1.04		%	0.96		%	1.23		%	0.88		%
Return on average shareholders' equity	9.02		%	8.44		%	8.52		%	7.40		%	6.88		%	8.73		%	6.04		%
Return on average tangible shareholders' equity ⁽¹⁾	16.31		%	15.24		%	15.50		%	13.61		%	12.90		%	15.78		%	11.29		%

Net interest margin	3.27		%	3.35		%	3.45		%	3.32		%	3.38		%	3.31		%	3.54		%
Net interest margin (fully tax equivalent) ⁽¹⁾⁽²⁾	3.31		%	3.40		%	3.49		%	3.36		%	3.44		%	3.35		%	3.60		%

Ending shareholders' equity as a percent of ending assets	14.15		%	13.97		%	14.29		%	14.11		%	13.99		%	14.15		%	13.99		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets ⁽¹⁾	8.37		%	8.22		%	8.47		%	8.25		%	8.09		%	8.37		%	8.09		%
Risk-weighted assets ⁽¹⁾	11.12		%	11.02		%	11.29		%	11.07		%	10.89		%	11.12		%	10.89		%

Average shareholders' equity as a percent of average assets	13.96		%	14.17		%	14.07		%	14.08		%	13.91		%	14.06		%	14.54		%
Average tangible shareholders' equity as a percent of
average tangible assets ⁽¹⁾	8.23		%	8.38		%	8.26		%	8.18		%	7.94		%	8.30		%	8.34		%

Book value per share	$	23.59		$	23.16		$	23.28		$	22.94		$	22.66		$	23.59		$	22.66
Tangible book value per share ⁽¹⁾	$	13.08		$	12.78		$	12.93		$	12.56		$	12.26		$	13.08		$	12.26

Common equity tier 1 ratio⁽³⁾	11.78		%	11.81		%	11.82		%	11.63		%	11.49		%	11.78		%	11.49		%
Tier 1 ratio ⁽³⁾	12.16		%	12.19		%	12.20		%	12.02		%	11.87		%	12.16		%	11.87		%
Total capital ratio ⁽³⁾	15.31		%	15.41		%	15.55		%	15.37		%	15.19		%	15.31		%	15.19		%
Leverage ratio ⁽³⁾	9.14		%	9.34		%	9.55		%	9.55		%	8.98		%	9.14		%	8.98		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽⁴⁾	$	9,831,965		$	9,951,855		$	10,127,881		$	10,253,392		$	10,002,379		$	9,891,579		$	9,611,511
Investment securities	4,130,207			3,782,993			3,403,839			3,162,832			3,164,243			3,957,559			3,139,983
Interest-bearing deposits with other banks	45,593			46,912			143,884			40,277			91,990			46,249			65,661
Total earning assets	$	14,007,765		$	13,781,760		$	13,675,604		$	13,456,501		$	13,258,612		$	13,895,387		$	12,817,155
Total assets	$	16,215,469		$	16,042,654		$	16,030,986		$	15,842,010		$	15,710,204		$	16,129,539		$	15,117,313
Noninterest-bearing deposits	$	4,003,626		$	3,840,046		$	3,720,417		$	3,535,432		$	3,335,866		$	3,922,288		$	2,989,553
Interest-bearing deposits	8,707,553			8,531,822			8,204,306			8,027,082			8,395,229			8,620,173			7,993,010
Total deposits	$	12,711,179		$	12,371,868		$	11,924,723		$	11,562,514		$	11,731,095		$	12,542,461		$	10,982,563
Borrowings	$	749,114		$	886,379		$	1,307,461		$	1,519,748		$	1,272,819		$	817,367		$	1,504,293
Shareholders' equity	$	2,263,687		$	2,272,749		$	2,256,062		$	2,230,422		$	2,185,865		$	2,268,193		$	2,197,799

CREDIT QUALITY RATIOS
Allowance to ending loans	1.68		%	1.71		%	1.77		%	1.65		%	1.56		%	1.68		%	1.56		%
Allowance to nonaccrual loans	184.77		%	199.33		%	217.55		%	216.28		%	233.74		%	184.77		%	233.74		%
Allowance to nonperforming loans	162.12		%	175.44		%	199.97		%	196.69		%	208.06		%	162.12		%	208.06		%
Nonperforming loans to total loans	1.03		%	0.97		%	0.89		%	0.84		%	0.75		%	1.03		%	0.75		%
Nonperforming assets to ending loans, plus OREO	1.04		%	0.98		%	0.90		%	0.86		%	0.77		%	1.04		%	0.77		%
Nonperforming assets to total assets	0.62		%	0.60		%	0.56		%	0.55		%	0.49		%	0.62		%	0.49		%
Classified assets to total assets	1.14		%	1.22		%	0.89		%	0.84		%	0.79		%	1.14		%	0.79		%
Net charge-offs to average loans (annualized)	0.23		%	0.38		%	0.26		%	0.21		%	0.12		%	0.30		%	0.05		%

⁽¹⁾ Non-GAAP measure. 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.

⁽²⁾ 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.

⁽³⁾ June 30, 2021 regulatory capital ratios are preliminary.

⁽⁴⁾ Includes loans held for sale.

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	Three months ended,								Six months ended,
	June 30,								June 30,
	2021			2020			% Change		2021			2020			% Change
Interest income
Loans and leases, including fees	$	97,494		$	105,900		(7.9)	%	$	196,425		$	221,675		(11.4)	%
Investment securities
Taxable	19,524			18,476			5.7	%	38,131			37,481			1.7	%
Tax-exempt	4,871			4,937			(1.3)	%	9,914			9,519			4.1	%
Total investment securities interest	24,395			23,413			4.2	%	48,045			47,000			2.2	%
Other earning assets	25			47			(46.8)	%	53			189			(72.0)	%
Total interest income	121,914			129,360			(5.8)	%	244,523			268,864			(9.1)	%

Interest expense
Deposits	3,693			11,751			(68.6)	%	8,026			28,116			(71.5)	%
Short-term borrowings	53			1,274			(95.8)	%	120			6,361			(98.1)	%
Long-term borrowings	4,142			4,759			(13.0)	%	8,475			8,529			(0.6)	%
Total interest expense	7,888			17,784			(55.6)	%	16,621			43,006			(61.4)	%
Net interest income	114,026			111,576			2.2	%	227,902			225,858			0.9	%
Provision for credit losses-loans and leases	(4,756)			17,859			(126.6)	%	(1,306)			41,739			(103.1)	%
Provision for credit losses-unfunded commitments	517			2,370			(78.2)	%	1,055			3,938			(73.2)	%
Net interest income after provision for credit losses	118,265			91,347			29.5	%	228,153			180,181			26.6	%

Noninterest income
Service charges on deposit accounts	7,537			6,001			25.6	%	14,683			14,436			1.7	%
Trust and wealth management fees	6,216			5,254			18.3	%	11,846			10,951			8.2	%
Bankcard income	3,732			2,844			31.2	%	6,860			5,542			23.8	%
Client derivative fees	1,795			2,984			(39.8)	%	3,351			6,089			(45.0)	%
Foreign exchange income	12,037			6,576			83.0	%	22,794			16,542			37.8	%
Net gains from sales of loans	8,489			16,662			(49.1)	%	17,943			19,493			(8.0)	%
Net gains (losses) on sale of investment securities	(265)			2			N/M		(431)			(57)			N/M
Unrealized gain (loss) on equity securities	161			150			7.3	%	273			52			N/M
Other	3,285			2,252			45.9	%	5,990			5,061			18.4	%
Total noninterest income	42,987			42,725			0.6	%	83,309			78,109			6.7	%

Noninterest expenses
Salaries and employee benefits	60,784			55,925			8.7	%	122,037			110,747			10.2	%
Net occupancy	5,535			5,378			2.9	%	11,239			11,482			(2.1)	%
Furniture and equipment	3,371			3,681			(8.4)	%	7,340			7,734			(5.1)	%
Data processing	7,864			7,019			12.0	%	15,151			13,408			13.0	%
Marketing	2,035			1,339			52.0	%	3,396			2,559			32.7	%
Communication	746			907			(17.8)	%	1,584			1,797			(11.9)	%
Professional services	2,029			2,205			(8.0)	%	3,479			4,480			(22.3)	%
State intangible tax	1,201			1,514			(20.7)	%	2,403			3,030			(20.7)	%
FDIC assessments	1,362			1,290			5.6	%	2,711			2,695			0.6	%
Intangible amortization	2,480			2,791			(11.1)	%	4,959			5,583			(11.2)	%
Other	12,236			6,640			84.3	%	17,850			14,840			20.3	%
Total noninterest expenses	99,643			88,689			12.4	%	192,149			178,355			7.7	%
Income before income taxes	61,609			45,383			35.8	%	119,313			79,935			49.3	%
Income tax expense	10,721			7,990			34.2	%	21,110			13,914			51.7	%
Net income	$	50,888		$	37,393		36.1	%	$	98,203		$	66,021		48.7	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.53		$	0.38				$	1.02		$	0.68
Net earnings per share - diluted	$	0.52		$	0.38				$	1.01		$	0.67
Dividends declared per share	$	0.23		$	0.23				$	0.46		$	0.46

Return on average assets	1.26		%	0.96		%			1.23		%	0.88		%
Return on average shareholders' equity	9.02		%	6.88		%			8.73		%	6.04		%

Interest income	$	121,914		$	129,360		(5.8)	%	$	244,523		$	268,864		(9.1)	%
Tax equivalent adjustment	1,619			1,664			(2.7)	%	3,271			3,288			(0.5)	%
Interest income - tax equivalent	123,533			131,024			(5.7)	%	247,794			272,152			(9.0)	%
Interest expense	7,888			17,784			(55.6)	%	16,621			43,006			(61.4)	%
Net interest income - tax equivalent	$	115,645		$	113,240		2.1	%	$	231,173		$	229,146		0.9	%

Net interest margin	3.27		%	3.38		%			3.31		%	3.54		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.31		%	3.44		%			3.35		%	3.60		%

Full-time equivalent employees	2,053			2,076

(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.

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2021
	Second			First			Year to			% Change
	Quarter			Quarter			Date			Linked Qtr.
Interest income
Loans and leases, including fees	$	97,494		$	98,931		$	196,425		(1.5)	%
Investment securities
Taxable	19,524			18,607			38,131			4.9	%
Tax-exempt	4,871			5,043			9,914			(3.4)	%
Total investment securities interest	24,395			23,650			48,045			3.2	%
Other earning assets	25			28			53			(10.7)	%
Total interest income	121,914			122,609			244,523			(0.6)	%

Interest expense
Deposits	3,693			4,333			8,026			(14.8)	%
Short-term borrowings	53			67			120			(20.9)	%
Long-term borrowings	4,142			4,333			8,475			(4.4)	%
Total interest expense	7,888			8,733			16,621			(9.7)	%
Net interest income	114,026			113,876			227,902			0.1	%
Provision for credit losses-loans and leases	(4,756)			3,450			(1,306)			(237.9)	%
Provision for credit losses-unfunded commitments	517			538			1,055			(3.9)	%
Net interest income after provision for credit losses	118,265			109,888			228,153			7.6	%

Noninterest income
Service charges on deposit accounts	7,537			7,146			14,683			5.5	%
Trust and wealth management fees	6,216			5,630			11,846			10.4	%
Bankcard income	3,732			3,128			6,860			19.3	%
Client derivative fees	1,795			1,556			3,351			15.4	%
Foreign exchange income	12,037			10,757			22,794			11.9	%
Net gains from sales of loans	8,489			9,454			17,943			(10.2)	%
Net gains (losses) on sale of investment securities	(265)			(166)			(431)			59.6	%
Unrealized gain (loss) on equity securities	161			112			273			43.8	%
Other	3,285			2,705			5,990			21.4	%
Total noninterest income	42,987			40,322			83,309			6.6	%

Noninterest expenses
Salaries and employee benefits	60,784			61,253			122,037			(0.8)	%
Net occupancy	5,535			5,704			11,239			(3.0)	%
Furniture and equipment	3,371			3,969			7,340			(15.1)	%
Data processing	7,864			7,287			15,151			7.9	%
Marketing	2,035			1,361			3,396			49.5	%
Communication	746			838			1,584			(11.0)	%
Professional services	2,029			1,450			3,479			39.9	%
State intangible tax	1,201			1,202			2,403			(0.1)	%
FDIC assessments	1,362			1,349			2,711			1.0	%
Intangible amortization	2,480			2,479			4,959			0.0	%
Other	12,236			5,614			17,850			118.0	%
Total noninterest expenses	99,643			92,506			192,149			7.7	%
Income before income taxes	61,609			57,704			119,313			6.8	%
Income tax expense	10,721			10,389			21,110			3.2	%
Net income	$	50,888		$	47,315		$	98,203		7.6	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.53		$	0.49		$	1.02
Net earnings per share - diluted	$	0.52		$	0.48		$	1.01
Dividends declared per share	$	0.23		$	0.23		$	0.46

Return on average assets	1.26		%	1.20		%	1.23		%
Return on average shareholders' equity	9.02		%	8.44		%	8.73		%

Interest income	$	121,914		$	122,609		$	244,523		(0.6)	%
Tax equivalent adjustment	1,619			1,652			3,271			(2.0)	%
Interest income - tax equivalent	123,533			124,261			247,794			(0.6)	%
Interest expense	7,888			8,733			16,621			(9.7)	%
Net interest income - tax equivalent	$	115,645		$	115,528		$	231,173		0.1	%

Net interest margin	3.27		%	3.35		%	3.31		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.31		%	3.40		%	3.35		%

Full-time equivalent employees	2,053			2,063

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2020
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans and leases, including fees	$	106,733		$	103,249		$	105,900		$	115,775		$	431,657
Investment securities
Taxable	18,402			17,906			18,476			19,005			73,789
Tax-exempt	4,839			4,884			4,937			4,582			19,242
Total investment securities interest	23,241			22,790			23,413			23,587			93,031
Other earning assets	55			31			47			142			275
Total interest income	130,029			126,070			129,360			139,504			524,963

Interest expense
Deposits	5,920			7,886			11,751			16,365			41,922
Short-term borrowings	30			51			1,274			5,087			6,442
Long-term borrowings	5,606			5,953			4,759			3,770			20,088
Total interest expense	11,556			13,890			17,784			25,222			68,452
Net interest income	118,473			112,180			111,576			114,282			456,511
Provision for credit losses-loans and leases	13,758			15,299			17,859			23,880			70,796
Provision for credit losses-unfunded commitments	(2,250)			(1,925)			2,370			1,568			(237)
Net interest income after provision for credit losses	106,965			98,806			91,347			88,834			385,952

Noninterest income
Service charges on deposit accounts	7,654			7,356			6,001			8,435			29,446
Trust and wealth management fees	5,395			4,940			5,254			5,697			21,286
Bankcard income	3,060			3,124			2,844			2,698			11,726
Client derivative fees	2,021			2,203			2,984			3,105			10,313
Foreign exchange income	12,305			10,530			6,576			9,966			39,377
Net gains from sales of loans	13,089			18,594			16,662			2,831			51,176
Net gains (losses) on sale of investment securities	4,618			2			2			(59)			4,563
Unrealized gain (loss) on equity securities	8,975			18			150			(98)			9,045
Other	4,398			2,732			2,252			2,809			12,191
Total noninterest income	61,515			49,499			42,725			35,384			189,123

Noninterest expenses
Salaries and employee benefits	62,263			63,769			55,925			54,822			236,779
Net occupancy	6,159			5,625			5,378			6,104			23,266
Furniture and equipment	3,596			3,638			3,681			4,053			14,968
Data processing	7,269			6,837			7,019			6,389			27,514
Marketing	1,999			1,856			1,339			1,220			6,414
Communication	840			855			907			890			3,492
Professional services	3,038			2,443			2,205			2,275			9,961
Debt extinguishment	7,257			0			0			0			7,257
State intangible tax	1,514			1,514			1,514			1,516			6,058
FDIC assessments	1,065			1,350			1,290			1,405			5,110
Intangible amortization	2,764			2,779			2,791			2,792			11,126
Other	17,034			6,845			6,640			8,200			38,719
Total noninterest expenses	114,798			97,511			88,689			89,666			390,664
Income before income taxes	53,682			50,794			45,383			34,552			184,411
Income tax expense (benefit)	5,370			9,317			7,990			5,924			28,601
Net income	$	48,312		$	41,477		$	37,393		$	28,628		$	155,810

ADDITIONAL DATA
Net earnings per share - basic	$	0.50		$	0.43		$	0.38		$	0.29		$	1.60
Net earnings per share - diluted	$	0.49		$	0.42		$	0.38		$	0.29		$	1.59
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.92

Return on average assets	1.20		%	1.04		%	0.96		%	0.79		%	1.00		%
Return on average shareholders' equity	8.52		%	7.40		%	6.88		%	5.21		%	7.02		%

Interest income	$	130,029		$	126,070		$	129,360		$	139,504		$	524,963
Tax equivalent adjustment	1,613			1,628			1,664			1,624			6,529

First Financial Bancorp Announces Second Quarter 2021 Financial Results