Earnings per diluted share of $0.55; $0.56 on an adjusted⁽¹⁾ basis
Return on average assets of 1.28%; 1.31% on an adjusted⁽¹⁾ basis
Net interest margin on FTE basis⁽¹⁾ of 3.47%; 30 bp increase from linked quarter
Loan growth of $191.4 million, excluding PPP; 8.3% on an annualized basis
Noninterest income of $49.8 million increased 20.6% from the linked quarter

CINCINNATI, July 21, 2022 /PRNewswire/ -- First Financial Bancorp. (NASDAQ:FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2022.

For the three months ended June 30, 2022, the Company reported net income of $51.5 million, or $0.55 per diluted common share. These results compare to net income of $41.3 million, or $0.44 per diluted common share, for the first quarter of 2022. For the six months ended June 30, 2022, First Financial had earnings per diluted share of $0.98 compared to $1.01 for the same period in 2021.

Return on average assets for the second quarter of 2022 was 1.28% while return on average tangible common equity was 20.68%⁽¹⁾. These compare to returns on average assets of 1.03% and return on average tangible common equity of 14.93%⁽¹⁾ in the first quarter of 2022.

Second quarter 2022 highlights include:

Strong loan growth when compared to linked quarter⁽²⁾

Loan balances increased $178.8 million compared to the first quarter; $191.4 million excluding PPP
Growth of 7.8% on an annualized basis; 8.3% on an annualized basis excluding PPP
Broad based portfolio growth, with large increases in C&I and residential real estate portfolios

Net interest margin of 3.43%, or 3.47% on a fully tax-equivalent basis⁽¹⁾, exceeded expectations

30 bp increase to 3.47% from 3.17% in the first quarter due to higher asset yields resulting from higher interest rates
34 bp increase in loan yields offset modest 2 basis point increase in cost of interest bearing deposits

Noninterest income of $49.8 million, or $50.8 million as adjusted⁽¹⁾

Record foreign exchange income of $13.5 million; 32.7% increase from the linked quarter
Leasing business income of $7.2 million; 19.3% increase from the linked quarter
Wealth management fees remained strong at $6.3 million
Mortgage banking revenue increased $1.4 million; 35.4% increase from the linked quarter
Other noninterest income increased $2.3 million; 65.9% increase from the linked quarter driven by investments in limited partnerships
Adjusted⁽¹⁾ for $1.1 million loss on investment securities

⁽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 consolidated balance sheets at June 30, 2022, March 31, 2022 and December 31, 2021 include assets

acquired and liabilities assumed in the Summit Financial transaction. The fair value measurements of assets

acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition

as additional information relative to closing date fair values becomes available.

Noninterest expenses of $103.2 million, or $102.4 million as adjusted⁽¹⁾

Adjustments⁽¹⁾ include $0.1 million of acquisition related costs and $0.7 million of other costs not expected to recur such as severance and branch consolidation costs
Slight increase in expenses driven by higher salaries and benefits tied to elevated fee income
Efficiency ratio of 61.8%; 60.9% as adjusted⁽¹⁾

Total Allowance for Credit Losses of $134.5 million; Total quarterly provision recapture of $0.8 million

Loans and leases - ACL of $117.9 million, 1.25% of total loans
Unfunded Commitments - ACL of $16.7 million
Provision recapture driven by stable credit quality
Net charge-offs declined to 8 bps of average loans and leases

Regulatory capital ratios remain in excess of internal targets

Total capital ratio of 13.94%
Tier 1 common equity increased 4 basis points to 10.91%
Tangible common equity of 6.40%⁽¹⁾; decrease from linked quarter driven by decline in AOCI
Tangible book value per share of $10.27⁽¹⁾

Archie Brown, President and CEO, commented on the quarter, "I am extremely pleased with our performance in the second quarter. Earnings improved from the first quarter as our asset sensitive balance sheet was positively impacted by recent rate increases. In addition, credit quality was stable with lower net charge-offs and nonaccrual loan balances. This led to a small provision recapture for the quarter."

Mr. Brown continued, "We were encouraged by our strong fee income performance for the quarter. Total fee income surpassed our expectations due to record foreign exchange income, strong income from limited partnership investments and growing leasing business income. While second quarter mortgage banking income increased 35% from the linked quarter, we continue to experience headwinds due to the rapid rise in interest rates. In addition, recent overdraft program changes led to a modest reduction in deposit account service charges during the second quarter and we expect further decline due to these program changes in the coming periods."

Mr. Brown commented on loan growth, "We were very pleased with loan growth in the second quarter. Loans (excluding PPP) increased by $191 million, or 8.3%, on an annualized basis. Loan growth was broad based, with increases in the C&I, retail mortgage and consumer portfolios. This more than offset a decline in the ICRE portfolio, which was driven by elevated prepayments. In addition, we were also pleased with Summit's growth in the quarter, including operating leases, which increased $21 million, or 33.5%, during the period. Loan origination activity remains strong as we head into the third quarter."

Mr. Brown concluded, "I want to thank our associates for their excellent performance so far this year. As we head into the back half of the year, we are optimistic that our balance sheet is positioned to further benefit from additional rate increases and loan activity remains strong. We remain diligent in our credit monitoring and are prepared to manage a downturn in the economy should it occur later in the interest rate cycle."

Full detail of the Company's second quarter 2022 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 22, 2022 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (844) 200-6205 (U.S. toll free), (646) 904-5544 (U.S. local) or +1 (929) 526-1599 (International), access code 099625. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (866) 813-9403 (U.S. toll free), (929) 458-6194 (U.S. local) and +44 204 525-0658 (all other locations), access code 049791. The recording will be available until August 5, 2022. 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. 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 Statements

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 changes in housing prices, fluctuations in 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 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, 2021, 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, 2022, the Company had $16.2 billion in assets, $9.4 billion in loans, $12.3 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 $3.0 billion in assets under management as of June 30, 2022. The Company operated 135 full service banking centers as of June 30, 2022, 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,
	2022	2022	2021	2021	2021	2022	2021
RESULTS OF OPERATIONS
Net income	$ 51,520	$ 41,301	$ 46,945	$ 60,012	$ 50,888	$ 92,821	$ 98,203
Net earnings per share - basic	$ 0.55	$ 0.44	$ 0.51	$ 0.64	$ 0.53	$ 0.99	$ 1.02
Net earnings per share - diluted	$ 0.55	$ 0.44	$ 0.50	$ 0.63	$ 0.52	$ 0.98	$ 1.01
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	1.28 %	1.03 %	1.16 %	1.49 %	1.26 %	1.16 %	1.23 %
Return on average shareholders' equity	9.84 %	7.53 %	8.31 %	10.53 %	9.02 %	8.66 %	8.73 %
Return on average tangible shareholders' equity ⁽¹⁾	20.68 %	14.93 %	15.11 %	19.03 %	16.31 %	17.65 %	15.78 %

Net interest margin	3.43 %	3.12 %	3.19 %	3.28 %	3.27 %	3.27 %	3.31 %
Net interest margin (fully tax equivalent) ⁽¹⁾⁽²⁾	3.47 %	3.17 %	3.23 %	3.32 %	3.31 %	3.32 %	3.35 %

Ending shareholders' equity as a percent of ending assets	12.74 %	13.35 %	13.83 %	14.01 %	14.15 %	12.74 %	14.15 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets ⁽¹⁾	6.40 %	6.95 %	7.58 %	8.21 %	8.37 %	6.40 %	8.37 %
Risk-weighted assets ⁽¹⁾	8.09 %	8.85 %	9.91 %	10.76 %	11.12 %	8.09 %	11.12 %

Average shareholders' equity as a percent of average assets	12.97 %	13.75 %	13.98 %	14.14 %	13.96 %	13.36 %	14.06 %
Average tangible shareholders' equity as a percent of
average tangible assets ⁽¹⁾	6.62 %	7.44 %	8.20 %	8.35 %	8.23 %	7.03 %	8.30 %

Book value per share	$ 21.90	$ 22.63	$ 23.99	$ 23.85	$ 23.59	$ 21.90	$ 23.59
Tangible book value per share ⁽¹⁾	$ 10.27	$ 10.97	$ 12.26	$ 13.09	$ 13.08	$ 10.27	$ 13.08

Common equity tier 1 ratio⁽³⁾	10.91 %	10.87 %	10.84 %	11.54 %	11.78 %	10.91 %	11.78 %
Tier 1 ratio ⁽³⁾	11.28 %	11.24 %	11.22 %	11.92 %	12.16 %	11.28 %	12.16 %
Total capital ratio ⁽³⁾	13.94 %	13.97 %	14.10 %	14.97 %	15.31 %	13.94 %	15.31 %
Leverage ratio ⁽³⁾	8.76 %	8.64 %	8.70 %	9.05 %	9.14 %	8.76 %	9.14 %

AVERAGE BALANCE SHEET ITEMS
Loans ⁽⁴⁾	$ 9,367,820	$ ,266,774	$ 9,283,227	$ 9,502,750	$ 9,831,965	$ 9,317,576	$ 9,891,579
Investment securities	4,118,287	4,308,059	4,343,513	4,189,253	4,130,207	4,212,649	3,957,559
Interest-bearing deposits with other banks	236,797	234,687	166,904	32,400	45,593	235,748	46,249
Total earning assets	$ 13,722,904	$ 13,809,520	$ 13,793,644	$ 13,724,403	$ 14,007,765	$ 13,765,973	$ 13,895,387
Total assets	$ 16,185,978	$ 16,184,919	$ 16,036,417	$ 15,995,808	$ 16,215,469	$ 16,185,451	$ 16,129,539
Noninterest-bearing deposits	$ 4,224,842	$ 4,160,175	$ 4,191,457	$ 3,981,404	$ 4,003,626	$ 4,192,687	$ 3,922,288
Interest-bearing deposits	8,312,876	8,623,800	8,693,792	8,685,949	8,707,553	8,467,479	8,620,173
Total deposits	$ 12,537,718	$ 12,783,975	$ 12,885,249	$ 12,667,353	$ 12,711,179	$ 12,660,166	$ 12,542,461
Borrowings	$ 970,243	$ 701,287	$ 396,743	$ 562,964	$ 749,114	$ 836,508	$ 817,367
Shareholders' equity	$ 2,099,670	$ 2,225,495	$ 2,241,820	$ 2,261,293	$ 2,263,687	$ 2,162,235	$ 2,268,193

CREDIT QUALITY RATIOS
Allowance to ending loans	1.25 %	1.34 %	1.42 %	1.59 %	1.68 %	1.25 %	1.68 %
Allowance to nonaccrual loans	302.87 %	273.09 %	272.76 %	225.73 %	184.77 %	302.87 %	184.77 %
Allowance to nonperforming loans	235.08 %	231.98 %	219.96 %	192.35 %	162.12 %	235.08 %	162.12 %
Nonperforming loans to total loans	0.53 %	0.58 %	0.65 %	0.83 %	1.03 %	0.53 %	1.03 %
Nonaccrual loans to total loans	0.41 %	0.49 %	0.52 %	0.70 %	0.91 %	0.41 %	0.91 %
Nonperforming assets to ending loans, plus OREO	0.53 %	0.58 %	0.65 %	0.83 %	1.04 %	0.53 %	1.04 %
Nonperforming assets to total assets	0.31 %	0.33 %	0.37 %	0.49 %	0.62 %	0.31 %	0.62 %
Classified assets to total assets	0.74 %	0.67 %	0.64 %	1.04 %	1.14 %	0.74 %	1.14 %
Net charge-offs to average loans (annualized)	0.08 %	0.10 %	0.32 %	0.10 %	0.23 %	0.09 %	0.30 %


⁽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, 2022 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,
	2022	2021	% Change	2022	2021	% Change
Interest income
Loans and leases, including fees	$ 97,091	$ 97,494	(0.4) %	$ 184,273	$ 196,425	(6.2) %
Investment securities
Taxable	23,639	19,524	21.1 %	45,735	38,131	19.9 %
Tax-exempt	4,916	4,871	0.9 %	9,347	9,914	(5.7) %
Total investment securities interest	28,555	24,395	17.1 %	55,082	48,045	14.6 %
Other earning assets	497	25	N/M	618	53	N/M
Total interest income	126,143	121,914	3.5 %	239,973	244,523	(1.9) %

Interest expense
Deposits	2,963	3,693	(19.8) %	5,586	8,026	(30.4) %
Short-term borrowings	1,373	53	N/M	1,690	120	N/M
Long-term borrowings	4,612	4,142	11.3 %	9,156	8,475	8.0 %
Total interest expense	8,948	7,888	13.4 %	16,432	16,621	(1.1) %
Net interest income	117,195	114,026	2.8 %	223,541	227,902	(1.9) %
Provision for credit losses-loans and leases	(4,267)	(4,756)	(10.3) %	(9,856)	(1,306)	N/M
Provision for credit losses-unfunded commitments	3,481	517	N/M	3,255	1,055	208.5 %
Net interest income after provision for credit losses	117,981	118,265	(0.2) %	230,142	228,153	0.9 %

Noninterest income
Service charges on deposit accounts	7,648	7,537	1.5 %	15,377	14,683	4.7 %
Trust and wealth management fees	6,311	6,216	1.5 %	12,371	11,846	4.4 %
Bankcard income	3,823	3,732	2.4 %	7,160	6,860	4.4 %
Client derivative fees	1,353	1,795	(24.6) %	2,152	3,351	(35.8) %
Foreign exchange income	13,470	12,037	11.9 %	23,621	22,794	3.6 %
Leasing business income	7,247	0	100.0 %	13,323	0	100.0 %
Net gains from sales of loans	5,241	8,489	(38.3) %	9,113	17,943	(49.2) %
Net gain (loss) on sale of investment securities	0	(265)	(100.0) %	3	(431)	(100.7) %
Net gain (loss) on equity securities	(1,054)	161	N/M	(1,253)	273	N/M
Other	5,747	3,285	74.9 %	9,212	5,990	53.8 %
Total noninterest income	49,786	42,987	15.8 %	91,079	83,309	9.3 %

Noninterest expenses
Salaries and employee benefits	64,992	60,784	6.9 %	128,939	122,037	5.7 %
Net occupancy	5,359	5,535	(3.2) %	11,105	11,239	(1.2) %
Furniture and equipment	3,201	3,371	(5.0) %	6,768	7,340	(7.8) %
Data processing	8,334	7,864	6.0 %	16,598	15,151	9.6 %
Marketing	2,323	2,035	14.2 %	4,023	3,396	18.5 %
Communication	670	746	(10.2) %	1,336	1,584	(15.7) %
Professional services	2,214	2,029	9.1 %	4,373	3,479	25.7 %
State intangible tax	1,090	1,201	(9.2) %	2,221	2,403	(7.6) %
FDIC assessments	1,677	1,362	23.1 %	3,136	2,711	15.7 %
Intangible amortization	2,915	2,480	17.5 %	5,829	4,959	17.5 %
Leasing business expense	4,687	0	100.0 %	8,556	0	100.0 %
Other	5,765	12,236	(52.9) %	13,148	17,850	(26.3) %
Total noninterest expenses	103,227	99,643	3.6 %	206,032	192,149	7.2 %
Income before income taxes	64,540	61,609	4.8 %	115,189	119,313	(3.5) %
Income tax expense	13,020	10,721	21.4 %	22,368	21,110	6.0 %
Net income	$ 51,520	$ 50,888	1.2 %	$ 92,821	$ 98,203	(5.5) %

ADDITIONAL DATA
Net earnings per share - basic	$ 0.55	$ 0.53		$ 0.99	$ 1.02
Net earnings per share - diluted	$ 0.55	$ 0.52		$ 0.98	$ 1.01
Dividends declared per share	$ 0.23	$ 0.23		$ 0.46	$ 0.46

Return on average assets	1.28 %	1.26 %		1.16 %	1.23 %
Return on average shareholders' equity	9.84 %	9.02 %		8.66 %	8.73 %

Interest income	$ 126,143	$ 121,914	3.5 %	$ 239,973	$ 244,523	(1.9) %
Tax equivalent adjustment	1,625	1,619	0.4 %	3,092	3,271	(5.5) %
Interest income - tax equivalent	127,768	123,533	3.4 %	243,065	247,794	(1.9) %
Interest expense	8,948	7,888	13.4 %	16,432	16,621	(1.1) %
Net interest income - tax equivalent	$ 118,820	$ 115,645	2.7 %	$ 226,633	$ 231,173	(2.0) %

Net interest margin	3.43 %	3.27 %		3.27 %	3.31 %
Net interest margin (fully tax equivalent) ⁽¹⁾	3.47 %	3.31 %		3.32 %	3.35 %

Full-time equivalent employees	2,096	2,053


⁽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)

	2022
		Second	First	Year to	% Change
		Quarter	Quarter	Date	Linked Qtr.
Interest income
Loans and leases, including fees		$ 97,091	$ 87,182	$ 184,273	11.4 %
Investment securities
Taxable		23,639	22,096	45,735	7.0 %
Tax-exempt		4,916	4,431	9,347	10.9 %
Total investment securities interest		28,555	26,527	55,082	7.6 %
Other earning assets		497	121	618	310.7 %
Total interest income		126,143	113,830	239,973	10.8 %

Interest expense
Deposits		2,963	2,623	5,586	13.0 %
Short-term borrowings		1,373	317	1,690	333.1 %
Long-term borrowings		4,612	4,544	9,156	1.5 %
Total interest expense		8,948	7,484	16,432	19.6 %
Net interest income		117,195	106,346	223,541	10.2 %
Provision for credit losses-loans and leases		(4,267)	(5,589)	(9,856)	(23.7) %
Provision for credit losses-unfunded commitments		3,481	(226)	3,255	N/M
Net interest income after provision for credit losses		117,981	112,161	230,142	5.2 %

Noninterest income
Service charges on deposit accounts		7,648	7,729	15,377	(1.0) %
Trust and wealth management fees		6,311	6,060	12,371	4.1 %
Bankcard income		3,823	3,337	7,160	14.6 %
Client derivative fees		1,353	799	2,152	69.3 %
Foreign exchange income		13,470	10,151	23,621	32.7 %
Leasing business income		7,247	6,076	13,323	19.3 %
Net gains from sales of loans		5,241	3,872	9,113	35.4 %
Net gain (loss) on sale of investment securities		0	3	3	(100.0) %
Net gain (loss) on equity securities		(1,054)	(199)	(1,253)	429.6 %
Other		5,747	3,465	9,212	65.9 %
Total noninterest income		49,786	41,293	91,079	20.6 %

Noninterest expenses
Salaries and employee benefits		64,992	63,947	128,939	1.6 %
Net occupancy		5,359	5,746	11,105	(6.7) %
Furniture and equipment		3,201	3,567	6,768	(10.3) %
Data processing		8,334	8,264	16,598	0.8 %
Marketing		2,323	1,700	4,023	36.6 %
Communication		670	666	1,336	0.6 %
Professional services		2,214	2,159	4,373	2.5 %
State intangible tax		1,090	1,131	2,221	(3.6) %
FDIC assessments		1,677	1,459	3,136	14.9 %
Intangible amortization		2,915	2,914	5,829	0.0 %
Leasing business expense		4,687	3,869	8,556	21.1 %
Other		5,765	7,383	13,148	(21.9) %
Total noninterest expenses		103,227	102,805	206,032	0.4 %
Income before income taxes		64,540	50,649	115,189	27.4 %
Income tax expense		13,020	9,348	22,368	39.3 %
Net income		$ 51,520	$ 41,301	$ 92,821	24.7 %

ADDITIONAL DATA
Net earnings per share - basic		$ 0.55	$ 0.44	$ 0.99
Net earnings per share - diluted		$ 0.55	$ 0.44	$ 0.98
Dividends declared per share		$ 0.23	$ 0.23	$ 0.46

Return on average assets		1.28 %	1.03 %	1.16 %
Return on average shareholders' equity		9.84 %	7.53 %	8.66 %

Interest income		$ 126,143	$ 113,830	$ 239,973	10.8 %
Tax equivalent adjustment		1,625	1,467	3,092	10.8 %
Interest income - tax equivalent		127,768	115,297	243,065	10.8 %
Interest expense		8,948	7,484	16,432	19.6 %
Net interest income - tax equivalent		$ 118,820	$ 107,813	$ 226,633	10.2 %

Net interest margin		3.43 %	3.12 %	3.27 %
Net interest margin (fully tax equivalent)⁽¹⁾		3.47 %	3.17 %	3.32 %

Full-time equivalent employees		2,096	2,050 ⁽²⁾


(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.
(2) Includes 65 FTE from Summit acquisition.

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

	2021
	Fourth	Third	Second	First	Full
	Quarter	Quarter	Quarter	Quarter	Year
Interest income
Loans and leases, including fees	$ 92,682	$ 96,428	$ 97,494	$ 98,931	$ 385,535
Investment securities
Taxable	20,993	20,088	19,524	18,607	79,212
Tax-exempt	4,127	4,282	4,871	5,043	18,323
Total investment securities interest	25,120	24,370	24,395	23,650	97,535
Other earning assets	71	23	25	28	147
Total interest income	117,873	120,821	121,914	122,609	483,217

Interest expense
Deposits	3,089	3,320	3,693	4,333	14,435
Short-term borrowings	10	68	53	67	198
Long-term borrowings	3,968	4,023	4,142	4,333	16,466
Total interest expense	7,067	7,411	7,888	8,733	31,099
Net interest income	110,806	113,410	114,026	113,876	452,118
Provision for credit losses-loans and leases	(9,525)	(8,193)	(4,756)	3,450	(19,024)
Provision for credit losses-unfunded commitments	1,799	(1,951)	517	538	903
Net interest income after provision for credit losses	118,532	123,554	118,265	109,888	470,239

Noninterest income
Service charges on deposit accounts	8,645	8,548	7,537	7,146	31,876
Trust and wealth management fees	6,038	5,896	6,216	5,630	23,780
Bankcard income	3,602	3,838	3,732	3,128	14,300
Client derivative fees	2,303	2,273	1,795	1,556	7,927
Foreign exchange income	12,808	9,191	12,037	10,757	44,793
Leasing business income	0	0	0	0	0
Net gains from sales of loans	6,492	8,586	8,489	9,454	33,021
Net gain (loss) on sale of investment securities	(14)	(314)	(265)	(166)	(759)
Net gain (loss) on equity securities	321	108	161	112	702
Other	5,465	4,411	3,285	2,705	15,866
Total noninterest income	45,660	42,537	42,987	40,322	171,506

Noninterest expenses
Salaries and employee benefits	62,170	61,717	60,784	61,253	245,924
Net occupancy	5,332	5,571	5,535	5,704	22,142
Furniture and equipment	3,161	3,318	3,371	3,969	13,819
Data processing	8,261	7,951	7,864	7,287	31,363
Marketing	2,152	2,435	2,035	1,361	7,983
Communication	677	669	746	838	2,930
Professional services	5,998	2,199	2,029	1,450	11,676
State intangible tax	651	1,202	1,201	1,202	4,256
FDIC assessments	1,453	1,466	1,362	1,349	5,630
Intangible amortization	2,401	2,479	2,480	2,479	9,839
Leasing business expense	0	0	0	0	0
Other	17,349	10,051	12,236	5,614	45,250
Total noninterest expenses	109,605	99,058	99,643	92,506	400,812
Income before income taxes	54,587	67,033	61,609	57,704	240,933
Income tax expense (benefit)	7,642	7,021	10,721	10,389	35,773
Net income	$ 46,945	$ 60,012	$ 50,888	$ 47,315	$ 205,160

ADDITIONAL DATA
Net earnings per share - basic	$ 0.51	$ 0.64	$ 0.53	$ 0.49	$ 2.16
Net earnings per share - diluted	$ 0.50	$ 0.63	$ 0.52	$ 0.48	$ 2.14
Dividends declared per share	$ 0.23	$ 0.23	$ 0.23	$ 0.23	$ 0.92

Return on average assets	1.16 %	1.49 %	1.26 %	1.20 %	1.28 %
Return on average shareholders' equity	8.31 %	10.53 %	9.02 %	8.44 %	9.08 %

Interest income	$ 117,873	$ 120,821	$ 121,914	$ 122,609	$ 483,217
Tax equivalent adjustment	1,386	1,434	1,619	1,652	6,091
Interest income - tax equivalent	119,259	122,255	123,533	124,261	489,308
Interest expense	7,067	7,411	7,888	8,733	31,099
Net interest income - tax equivalent	$ 112,192	$ 114,844	$ 115,645	$ 115,528	$ 458,209

Net interest margin	3.19 %	3.28 %	3.27 %	3.35 %	3.27 %
Net interest margin (fully tax equivalent)⁽¹⁾	3.23 %	3.32 %	3.31 %	3.40 %	3.31 %

Full-time equivalent employees	1,994	2,026	2,053	2,063


⁽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 STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	June 30,	Mar. 31,	Dec. 31,	Sep. 30,	June 30,	% Change	% Change
	2022	2022	2021	2021	2021	Linked Qtr.	Comp Qtr.
ASSETS
Cash and due from banks	$ 302,549	$ 230,428	$ 220,031	$ 209,748	$ 206,918	31.3 %	46.2 %
Interest-bearing deposits with other banks	184,974	227,147	214,811	29,799	38,610	(18.6) %	379.1 %
Investment securities available-for-sale	3,843,580	3,957,882	4,207,846	4,114,094	3,955,839	(2.9) %	(2.8) %
Investment securities held-to-maturity	88,057	92,597	98,420	103,886	112,456	(4.9) %	(21.7) %
Other investments	132,151	114,563	102,971	97,831	129,432	15.4 %	2.1 %
Loans held for sale	22,044	12,670	29,482	33,835	31,546	74.0 %	(30.1) %
Loans and leases
Commercial and industrial	2,927,175	2,800,209	2,720,028	2,602,848	2,701,203	4.5 %	8.4 %
Lease financing	146,639	125,867	109,624	67,855	68,229	16.5 %	114.9 %
Construction real estate	449,734	479,744	455,894	477,004	630,329	(6.3) %	(28.7) %
Commercial real estate	4,007,037	4,031,484	4,226,614	4,438,374	4,332,561	(0.6) %	(7.5) %
Residential real estate	965,387	913,838	896,069	922,492	932,112	5.6 %	3.6 %
Home equity	725,700	707,973	708,399	709,050	711,756	2.5 %	2.0 %
Installment	146,680	132,197	119,454	96,077	89,143	11.0 %	64.5 %
Credit card	52,065	50,305	52,217	47,231	46,177	3.5 %	12.8 %
Total loans	9,420,417	9,241,617	9,288,299	9,360,931	9,511,510	1.9 %	(1.0) %
Less:
Allowance for credit losses	(117,885)	(124,130)	(131,992)	(148,903)	(159,590)	(5.0) %	(26.1) %
Net loans	9,302,532	9,117,487	9,156,307	9,212,028	9,351,920	2.0 %	(0.5) %
Premises and equipment	191,099	190,975	193,040	192,580	192,238	0.1 %	(0.6) %
Operating leases	82,659	61,927	60,811	0	0	33.5 %	100.0 %
Goodwill	999,959	999,959	1,000,749	937,771	937,771	0.0 %	6.6 %
Other intangibles	82,889	85,891	88,898	56,811	59,391	(3.5) %	39.6 %
Accrued interest and other assets	1,011,221	917,624	955,775	968,210	1,021,798	10.2 %	(1.0) %
Total Assets	$ 16,243,714	$ 16,009,150	$ 16,329,141	$ 15,956,593	$ 16,037,919	1.5 %	1.3 %

LIABILITIES
Deposits
Interest-bearing demand	$ 3,096,365	$ 3,246,646	$ 3,198,745	$ 2,916,860	$ 2,963,151	(4.6) %	4.5 %
Savings	4,029,717	4,188,867	4,157,374	4,223,905	4,093,229	(3.8) %	(1.6) %
Time	1,026,918	1,121,966	1,330,263	1,517,419	1,548,109	(8.5) %	(33.7) %
Total interest-bearing deposits	8,153,000	8,557,479	8,686,382	8,658,184	8,604,489	(4.7) %	(5.2) %
Noninterest-bearing	4,124,111	4,261,429	4,185,572	4,019,197