First Financial Bancorp Announces Second Quarter 2023 Financial Results

• Moderate loan growth during the quarter

• • Loan balances increased $116.8 million compared to the first quarter

• • Growth of 4.5% on an annualized basis

• • Residential mortgage and equipment leases drove quarterly growth

• Total Allowance for Credit Losses of $166.9 million; Total quarterly provision expense of $10.7 million

• • Loans and leases - ACL of $148.6 million; increased 5 bps to 1.41% of total loans

• • Unfunded Commitments - ACL of $18.2 million

• • Provision expense driven by slower prepayment speeds, net charge-offs and loan growth

• • Classified assets declined 12.6% to $138.9 million; Net charge-offs 22 bps of total loans

• Capital ratios remain solid

• • Total capital ratio increased 28 bps to 13.94%

• • Tier 1 common equity increased 30 bps to 11.30%

• • Tangible common equity increased 9 bps to 6.56%⁽¹⁾; 8.76%⁽¹⁾ excluding impact from AOCI

• • Tangible book value per share of $11.02⁽¹⁾

Archie Brown, President and CEO, commented on the quarter, "I continue to be pleased with our performance this year.  Earnings in the second quarter were once again very strong as an expected increase in deposit costs was mostly offset by higher asset yields.  Adjusted⁽¹⁾ earnings per share were $0.72, which was a 29% increase compared to the same quarter in 2022, while the adjusted⁽¹⁾ returns on assets and tangible common equity were 1.62% and 26.46%, respectively.  Net interest margin exceeded expectations during the period as our asset sensitive balance sheet has enabled the company to successfully navigate the higher interest rate environment.  We were encouraged by the stabilization of deposit balances in the last half of the quarter.  Personal, business and public fund deposits were stable to increasing from May to June while the mix continued to shift to interest bearing products."

Mr. Brown continued, "Our fee income largely exceeded our expectations this quarter, with strong performance from mortgage banking, client swaps and wealth management.  Summit Funding Group had another nice quarter in originations although the mix has shifted to a higher level of finance leases and loans.  This shift has bolstered our net interest income but resulted in less fee income during the period."  

Mr. Brown commented on loan growth and quality, "Loan growth was in line with expectations for the period.  While loan activity slowed early in the quarter and we experienced higher commercial line pay downs, loan pipelines strengthened in recent weeks. We expect moderate loan growth in the second half of the year.  We were pleased that asset quality remained strong during the quarter.  Net charge-offs were 22 bps on an annualized basis after being zero last quarter and a net recovery in the fourth quarter of 2022 while classified assets declined 13% from the linked quarter."

Mr. Brown concluded, "We are extremely pleased with our results this quarter.  The position of our balance sheet, strong net interest margin, consistent loan growth, robust fee income and stable asset quality is expected to sustain our performance in the back half of the year.  Additionally, our earnings power, strong and increasing capital levels and high reserve levels provide additional support in the event of a downturn in the economy."

Full detail of the Company's second 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, July 21, 2023 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 August 5, 2023.  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 June 30, 2023, the Company had $17.1 billion in assets, $10.6 billion in loans, $12.8 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 $3.3 billion in assets under management as of June 30, 2023.  The Company operated 130 full service banking centers as of June 30, 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

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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,
	2023		2023		2022		2022		2022		2023		2022
RESULTS OF OPERATIONS
Net income	$     65,667		$     70,403		$     69,086		$     55,705		$     51,520		$    136,070		$      92,821
Net earnings per share - basic	$         0.70		$         0.75		$         0.74		$         0.60		$         0.55		$         1.45		$         0.99
Net earnings per share - diluted	$         0.69		$         0.74		$         0.73		$         0.59		$         0.55		$         1.43		$         0.98
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	1.55 %		1.69 %		1.63 %		1.35 %		1.28 %		1.62 %		1.16 %
Return on average shareholders' equity	12.32 %		13.71 %		13.64 %		10.58 %		9.84 %		13.00 %		8.66 %
Return on average tangible shareholders' equity (1)	25.27 %		29.02 %		29.93 %		22.29 %		20.68 % 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 - Boersia.de Nvidia Aktie: Kursanstieg nach Technologieinvestitionen 28.04.24 - The Motley Fool Hohe Dividendenrendite lockt Anleger: Welche Aktien sind jetzt besonders attraktiv? 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