First Financial Bancorp Announces Fourth Quarter and Full Year 2023 Financial Results and Quarterly Dividend

Mr. Brown continued, "Noninterest income and expenses were both lower than we expected during the quarter.  The decline in noninterest income included a $4.6 million loss on a trade at Bannockburn, however excluding this loss, foreign exchange income was within our range of expectations.  Leasing income also declined during the period due to lower end of term fees and lease originations shifting to a greater mix of finance leases.  While this shift increased interest income and the net interest margin, it resulted in lower noninterest income during the period.  Noninterest expenses declined for the quarter primarily due to lower incentive compensation, which is tied directly to noninterest income." 

Mr. Brown commented on asset quality, "Asset quality was stable for the quarter with underlying credit trends improving.  Net charge-offs were 46 basis points during the quarter and were driven by a relationship that included borrower fraud.  This loan had been on non-accrual for most of the year and was almost fully reserved coming into the fourth quarter.  Additionally, nonperforming assets declined by 12% to 0.38% of total assets and classified asset balances were relatively unchanged from the third quarter." 

Mr. Brown discussed full year results, "2023 was a record year for First Financial.  Adjusted⁽¹⁾ earnings per share increased 17% from the prior year to $2.77, while adjusted⁽¹⁾ return on assets was 1.55%, adjusted ⁽¹⁾ return on tangible common equity was 25.4% and our adjusted⁽¹⁾ efficiency ratio was 56%.  Total revenue of $840.2 million was the highest in the Company's history, increasing 18.5% over the prior year.  Our balance sheet responded favorably to the interest rate environment, resulting in a 21% increase in net interest income.  Additionally, record years from wealth management and Summit drove a 12% increase in noninterest income." 

Mr. Brown continued, "We are extremely pleased with the performance of our balance sheet during 2023, especially given the turmoil in the banking industry in the first half of the year.  Loan production was solid, exceeding 6% in balance growth, while average deposit balances increased 2.4% compared to the prior year.  We are also very happy with the 122 basis point expansion in the tangible common equity ratio and 24% increase in tangible book value per share for the year." 

Mr. Brown commented on full year asset quality, "Asset quality trends were elevated during the year.  Net charge-offs increased to 33 basis points for 2023, after we achieved a record low of 6 basis points in 2022.  This increase was driven by two large relationships, as well as the loss on the sale of a small portfolio of ICRE loans.  Non-performing assets to total assets ended the year at 38 basis points.  We believe we are well positioned to manage the coming year and we are cautiously optimistic regarding asset quality in 2024." 

Mr. Brown concluded, "Finally, I'd like to commend our associates for their exemplary performance in 2023.  They were client focused and executed at a very high level despite the industry uncertainty earlier in the year.  During the year we have strengthened our team with the addition of talent in Wealth Management and in expansion markets, including Chicago, IL, Evansville, IN and Cleveland, OH.  I'm extremely proud of the work our team accomplished in 2023 and believe we are positioned to have sustained success in 2024 and beyond."

Full detail of the Company's fourth quarter 2023 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, January 26, 2024 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068.  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 (800) 770-2030 (U.S. toll free), (647) 362-9199 (U.S. local), access code 5048068.  The recording will be available until February 9, 2024.  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, 2022, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov. 

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

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company.  As of December 31, 2023, the Company had $17.5 billion in assets, $10.9 billion in loans, $13.4 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 $3.5 billion in assets under management as of December 31, 2023.  The Company operated 130 full service banking centers as of December 31, 2023, located 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,										Twelve months ended,
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Dec. 31,
	2023		2023		2023		2023		2022		2023		2022
RESULTS OF OPERATIONS
Net income	$     56,732		$     63,061		$     65,667		$     70,403		$     69,086		$   255,863		$   217,612
Net earnings per share - basic	$         0.60		$         0.67		$         0.70		$         0.75		$         0.74		$         2.72		$         2.33
Net earnings per share - diluted	$         0.60		$         0.66		$         0.69		$         0.74		$         0.73		$         2.69		$         2.30
Dividends declared per share	$         0.23		$         0.23		$         0.23		$         0.23		$         0.23		$         0.92		$         0.92
KEY FINANCIAL RATIOS
Return on average assets	1.31 %		1.48 %		1.55 %		1.69 %		1.63 %		1.51 %		1.33 %
Return on average shareholders' equity	10.50 %		11.62 %		12.32 %		13.71 %		13.64 %		12.01 %		10.34 %
Return on average tangible shareholders' equity (1)	21.36 %		23.60 %		25.27 %		29.02 % Werbung Mehr Nachrichten zur First Financial Bancorp Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 28.04.24 - dpa-AFX Firmenchef-Umfrage: Über 70 Prozent fürchten Cyber-Angriff 28.04.24 - wallstreet:online ... US-Wachstumswerte: Welche Magnificent-7-Aktien sind weiterhin aussichtsreich? 28.04.24 - bullvestor InnoCan Pharma: Ist das die nächste Milliarden-CBD-Übernahmestory? Biotech-Einhorn!    Ist das die nächste Milliarden-CBD-Übernahmestory? weiterlesen» Anzeige wo-site-teaser-box-16782_site-teaser-box_2024-04-28_09%253A00%253A00_2024-04-29_09%253A00%253A59