First Financial Bancorp Reports First Quarter 2016 Financial Results

First Financial Bancorp Reports First Quarter 2016 Financial Results

Net Income Increases 12% from First Quarter 2015

PR Newswire

CINCINNATI, April 21, 2016 /PRNewswire/ -- First Financial Bancorp (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the first quarter 2016.  For the three months ended March 31, 2016, the Company reported net income of $19.8 million, or $0.32 per diluted common share, compared to net income of $19.8 million, or $0.32 per diluted common share, in the fourth quarter of 2015 and $17.6 million, or $0.29 per diluted common share, in the first quarter of 2015. 

Return on average assets for the first quarter of 2016 was 0.98% while return on average tangible common equity was 13.06%.  These compare to a return on average assets of 0.99% and return on average tangible common equity of 12.98% in the fourth quarter of 2015 and a return on average assets of 0.99% and a return on average tangible common equity of 11.12% in the first quarter of 2015.

First quarter 2016 results included approximately $0.5 million of pre-tax, non-operating expenses which were primarily related to the consolidation of six branch locations during the period.  Excluding these items, net income was $20.1 million, or $0.33 per diluted common share, return on average assets was 1.00% and return on average tangible common equity was 13.27%.  Excluding $1.0 million of pre-tax, non-operating expenses, fourth quarter 2015 net income was $20.5 million, or $0.33 per diluted common share, return on average assets was 1.02% and return on average tangible common equity was 13.40%.

Claude Davis, Chief Executive Officer, commented, "We are pleased with another strong quarter of operating results, which produced our 102nd consecutive quarter of profitability.  Continuing on the momentum from 2015, loan production remained strong during the first quarter, with balance growth of 8.6% on an annualized basis.  Loan balances grew in the first quarter as our metropolitan markets continued to exhibit high demand, while specialty finance lending, which includes our two nationwide lending platforms, also contributed to loan growth during the period."

"Net interest margin remained stable, reflecting the impact from the interest rate increase late in 2015 as well as higher yields on the investment portfolio.  We are well positioned to take advantage of rising rates and are excited about the growth opportunities throughout our footprint.  Additionally, we remain focused on growing fee income and reducing funding costs through targeted initiatives across the organization."

"As we look forward, our focus remains centered on serving the financial needs of our commercial, small business, consumer and wealth management clients while remaining disciplined in our approach to further our progress toward top-quartile performance."

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income for the first quarter was $66.6 million as compared to $66.1 million for the fourth quarter 2015 and $58.6 million for the first quarter 2015.  Compared to the linked quarter, total interest income increased $1.6 million, or 2.1%, while total interest expense increased $1.1 million, or 15.3%.  Net interest margin on a fully tax equivalent basis was 3.68% for the first quarter compared to 3.69% for the fourth quarter 2015 and 3.67% for the first quarter 2015.

Interest income on loans increased $0.9 million compared to the prior quarter, as average loan balances increased $174.8 million during the period.  The effective yield on the loan portfolio was consistent with fourth quarter results, declining slightly to 4.59% for the first quarter 2016 compared to 4.62% in the fourth quarter of 2015.  The increase in interest income on loans compared to first quarter of 2015 was related to organic loan growth as well as the Oak Street acquisition, which closed during the third quarter of 2015.

Interest income on investment securities increased $0.6 million compared to the prior quarter due to the higher yield earned on the portfolio as average balances were relatively unchanged.  The effective yield on the investment portfolio increased 15 bps to 2.59%, reflecting efforts to re-balance the portfolio into higher yielding securities, the recent interest rate increase and a modest decline in prepayment speeds during the quarter.

Interest expense increased $1.1 million compared to the prior quarter, due primarily to the fourth quarter increase in interest rates, as well as a $206.5 million increase in average interest bearing liabilities during the period.

The effective cost of borrowed funds decreased by 1 bp to 1.02%, while the cost of deposit funding increased 3 bps from 33 bps in the fourth quarter 2015 to 36 bps during the first quarter 2016 primarily due to the impact of higher interest rates on indexed deposits.

NONINTEREST INCOME

The Company's noninterest income was $15.5 million for the first quarter of 2016 compared to $15.8 million for the fourth quarter of 2015 and $17.6 million for the first quarter of 2015.  The $0.3 million decrease versus the linked quarter was primarily related to a $0.4 million decrease in FDIC loss sharing income, as well as seasonal declines of $0.4 million in deposit service charges and $0.2 million in bankcard income. These declines were partially offset by a $0.4 million seasonal increase in trust and wealth management fees and a $0.2 million increase in accelerated discount on covered / formerly covered loans during the period.  The comparable quarter decline was primarily due to higher accelerated discount on covered / formerly covered loans as well as the recapture of a previously accrued liability due to the favorable resolution of a former Irwin subsidiary matter during the first quarter of 2015.

NONINTEREST EXPENSE

The Company's noninterest expense was $50.7 million for the first quarter of 2016 compared to $51.3 million for the fourth quarter of 2015 and $48.1 million for the first quarter of 2015.  The $0.6 million decrease was primarily related to $0.2 million of gains on the sale of OREO properties during the period, compared to $0.8 million of losses during the fourth quarter.  The decline in losses on sale of OREO was partially offset by a $0.6 million increase in occupancy expenses primarily related to branch consolidation activity during the period.  The increase in noninterest expense compared to first quarter of 2015 was primarily related to the Oak Street acquisition, which closed during the third quarter of 2015.

BALANCE SHEET & CAPITAL

Total assets were $8.2 billion, total loans were $5.5 billion and investment securities were $1.9 billion as of March 31, 2016.  Total assets increased by $46.1 million, or 2.3% annualized, from the prior quarter and by $947.8 million, or 13.1%, compared to the prior year.  Total loans increased by $115.8 million, or 8.6% annualized, from the prior quarter and by $741.1 million, or 15.6%, over the prior year.  Investment securities decreased by $50.7 million, or 10.4% annualized, from the prior quarter and increased by $134.7 million, or 7.5%, over the prior year.

Total deposits were $6.2 billion as of March 31, 2016, a decrease of $2.8 million, or 0.2% annualized, compared to the prior quarter and increased $462.2 million, or 8.1%, compared to first quarter 2015.  Borrowed funds were $1.1 billion as of March 31, 2016 and December 31, 2015 compared to $639.2 million as of March 31, 2015.

As of March 31, 2016, the Company had total shareholders' equity of $826.6 million, an increase of $17.2 million, or 8.6% annualized, over the prior quarter and an increase of $30.8 million, or 3.9%, over the prior year.  The linked quarter increase in total shareholders' equity was primarily related to quarterly retained earnings as well as the impact to Other Comprehensive Income from unrealized gains on the investment securities portfolio during the period.

The Company's regulatory capital ratios remain strong and, as of March 31, 2016, were as follows:  leverage ratio of 8.27%, total capital ratio of 12.84%, tier 1 capital ratio of 10.16% and tangible common equity ratio of 7.71%.  The Company's tangible book value per share was $9.94 as of March 31, 2016.

ASSET QUALITY

First quarter provision expense was $1.7 million and the total allowance for loan and lease losses as of March 31, 2016 was $53.7 million.  The allowance as a percentage of period-end loans was 0.98% at the end of the first quarter which represents a 1 bp decline from 0.99% at the end of the fourth quarter.  The balance of the Company's total allowance and loan marks, net of the indemnification asset, was 1.08% of total loans and leases as of March 31, 2016 which represents a 3 bp decline from 1.11% as of December 31, 2015.  This change is largely attributable to strong organic loan growth during the first quarter as well as the decline in nonaccrual loans and other asset quality improvements during the period.

For the first quarter, net charge-offs totaled $1.3 million, a decrease of $0.5 million, or 26.5% compared to the linked quarter, and were 0.10% of average loans on an annualized basis.  Nonaccrual loans decreased $6.0 million, or 21.4%, to $22.0 million as of March 31, 2016.  Total classified assets increased slightly to $133.9 million as of March 31, 2016 compared to $132.4 million as of December 31, 2015.

Teleconference / Webcast Information

First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 22, 2016 at 8:30 a.m. Eastern Standard 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 10084369.  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 and any non-GAAP reconciliations related to this release is available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

About First Financial Bancorp

First Financial Bancorp is a Cincinnati, Ohio based bank holding company.  As of March 31, 2016, the Company had $8.2 billion in assets, $5.5 billion in loans, $6.2 billion in deposits and $826.6 million in shareholders' equity.  The Company's subsidiary, First Financial Bank, N.A., founded in 1863, provides banking and financial services products through its five lines of business: commercial, consumer, wealth management, specialty finance and mortgage.  The commercial, consumer, specialty finance and mortgage units provide traditional banking services to business and retail clients.  First Financial Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.3 billion in assets under management as of March 31, 2016.  The Company's strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 101 banking centers.  Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.

Forward-Looking Statement

Certain statements contained in this release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act.  Examples of forward-looking statements include, but are not limited to, projections of revenues, income or loss, earnings or loss per share, the payment or non-payment of dividends, capital structure and other financial items, statements of plans and objectives of First Financial or its management or board of directors and statements of future economic performances and statements of assumptions underlying such statements.  Words such as ''believes,'' ''anticipates,'' "likely," "expected," ''intends,'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Management's analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance.  However, such performance involves risks and uncertainties that may cause actual results to differ materially.  These factors include, but are not limited to: economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; the effect of and changes in policies and laws or regulatory agencies (notably the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act); management's ability to effectively execute its business plan; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the Company's ability to comply with the terms of loss sharing agreements with the FDIC; the effect of changes in accounting policies and practices; and the costs and effects of litigation and of unexpected or adverse outcomes in such litigation.  Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2015, as well as its other filings with the SEC, for a more detailed discussion of these risks, uncertainties and other factors that could cause actual results to differ from those discussed in the forward-looking statements.  Such forward-looking statements are meaningful only on the date when such statements are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such a statement is made to reflect the occurrence of unanticipated events.

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

(Unaudited)













Three Months Ended,



Mar. 31,


Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,



2016


2015


2015


2015


2015


RESULTS OF OPERATIONS











Net income

$

19,814



$

19,820



$

18,673



$

18,949



$

17,621



Net earnings per share - basic

$

0.32



$

0.33



$

0.31



$

0.31



$

0.29



Net earnings per share - diluted

$

0.32



$

0.32



$

0.30



$

0.31



$

0.29



Dividends declared per share

$

0.16



$

0.16



$

0.16



$

0.16



$

0.16














KEY FINANCIAL RATIOS











Return on average assets

0.98

%


0.99

%


0.97

%


1.05

%


0.99

%


Return on average shareholders' equity

9.70

%


9.62

%


9.12

%


9.49

%


9.06

%


Return on average tangible shareholders' equity

13.06

%


12.98

%


12.33

%


11.60

%


11.12

%













Net interest margin

3.62

%


3.63

%


3.61

%


3.56

%


3.61

%


Net interest margin (fully tax equivalent) (1)

3.68

%


3.69

%


3.67

%


3.62

%


3.67

%













Ending shareholders' equity as a percent of ending assets

10.09

%


9.93

%


10.32

%


10.87

%


10.98

%


Ending tangible shareholders' equity as a percent of:











Ending tangible assets

7.71

%


7.53

%


7.84

%


9.08

%


9.16

%


Risk-weighted assets

9.49

%


9.47

%


9.90

%


11.63

%


11.64

%













Average shareholders' equity as a percent of average assets

10.12

%


10.29

%


10.67

%


11.05

%


10.95

%


Average tangible shareholders' equity as a percent of average tangible assets

7.71

%


7.83

%


8.12

%


9.23

%


9.11

%













Book value per share

$

13.36



$

13.13



$

13.17



$

13.00



$

12.90



Tangible book value per share

$

9.94



$

9.69



$

9.74



$

10.65



$

10.54














Common equity tier 1 ratio (2)

10.16

%


10.28

%


10.51

%


12.34

%


12.29

%


Tier 1 ratio (2)

10.16

%


10.29

%


10.52

%


12.35

%


12.29

%


Total capital ratio (2)

12.84

%


13.04

%


13.37

%


13.31

%


13.27

%


Leverage ratio (2)

8.27

%


8.33

%


8.58

%


9.77

%


9.67

%













AVERAGE BALANCE SHEET ITEMS











Loans (3)

$

5,417,812



$

5,248,465



$

5,032,708



$

4,793,471



$

4,770,671



FDIC indemnification asset

17,138



18,437



19,848



20,744



22,112



Investment securities

1,938,772



1,934,173



1,848,083



1,782,785



1,762,622



Interest-bearing deposits with other banks

24,291



18,920



37,468



19,960



21,255



  Total earning assets

$

7,398,013



$

7,219,995



$

6,938,107



$

6,616,960



$

6,576,660



Total assets

$

8,118,945



$

7,950,278



$

7,611,389



$

7,243,886



$

7,201,313



Noninterest-bearing deposits

$

1,386,768



$

1,402,283



$

1,344,049



$

1,325,485



$

1,286,067



Interest-bearing deposits

4,749,253



4,845,056



4,615,886



4,446,248



4,361,525



  Total deposits

$

6,136,021



$

6,247,339



$

5,959,935



$

5,771,733



$

5,647,592



Borrowings

$

1,065,739



$

763,408



$

746,706



$

587,225



$

691,012



Shareholders' equity

$

821,588



$

817,756



$

812,396



$

800,598



$

788,511














CREDIT QUALITY RATIOS










Allowance to ending loans

0.98

%


0.99

%


1.02

%


1.09

%


1.11

%


Allowance to nonaccrual loans

244.16

%


190.73

%


149.33

%


133.28

%


107.98

%


Allowance to nonperforming loans

103.07

%


93.89

%


95.34

%


88.49

%


82.18

%


Nonperforming loans to total loans

0.95

%


1.06

%


1.07

%


1.23

%


1.36

%


Nonperforming assets to ending loans, plus OREO

1.16

%


1.30

%


1.36

%


1.56

%


1.79

%


Nonperforming assets to total assets

0.78

%


0.86

%


0.90

%


1.03

%


1.18

%


Net charge-offs to average loans (annualized)

0.10

%


0.14

%


0.17

%


0.27

%


0.16

%



(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis.  Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

(2) March 31, 2016 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

 



FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)














2016


2015


First


Fourth


Third


Second


First


Full


Quarter


Quarter


Quarter


Quarter


Quarter


Year

Interest income












  Loans, including fees

$

63,399



$

62,502



$

58,694



$

54,586



$

54,464



$

230,246


  Investment securities












     Taxable

11,373



10,702



9,986



9,281



9,608



39,577


     Tax-exempt

1,162



1,192



1,163



1,139



1,117



4,611


        Total investment securities interest

12,535



11,894



11,149



10,420



10,725



44,188


  Other earning assets

(1,139)



(1,164)



(1,168)



(1,162)



(1,181)



(4,675)


       Total interest income

74,795



73,232



68,675



63,844



64,008



269,759














Interest expense












  Deposits

5,530



5,172



4,861



4,621



4,820



19,474


  Short-term borrowings

1,170



434



374



253



303



1,364


  Long-term borrowings

1,540



1,543



281



296



299



2,419


      Total interest expense

8,240



7,149



5,516



5,170



5,422



23,257


      Net interest income

66,555



66,083



63,159



58,674



58,586



246,502


  Provision for loan and lease losses

1,655



1,864



2,647



3,070



2,060



9,641


      Net interest income after provision for loan and lease losses

64,900



64,219



60,512



55,604



56,526



236,861














Noninterest income












  Service charges on deposit accounts

4,381



4,755



4,934



4,803



4,523



19,015


  Trust and wealth management fees

3,440



3,086



3,134



3,274



3,634



13,128


  Bankcard income

2,882



3,077



2,909



2,972



2,620



11,578


  Client derivative fees

1,095



945



1,604



878



962



4,389


  Net gains from sales of loans

1,181



1,325



1,758



1,924



1,464



6,471


  Net gain on sale of investment securities

24



2



409



1,094



0



1,505


  FDIC loss sharing income

(565)



(164)



(973)



(304)



(1,046)



(2,487)


  Accelerated discount on covered / formerly covered loans

971



785



3,820



4,094



2,092



10,791


  Other

2,103



2,008



2,760



2,680



3,364



10,812


      Total noninterest income

15,512



15,819



20,355



21,415



17,613



75,202














Noninterest expenses












  Salaries and employee benefits

29,615



29,632



27,768



27,451



26,941



111,792


  Net occupancy

4,957



4,337



4,510



4,380



5,005



18,232


  Furniture and equipment

2,213



2,185



2,165



2,219



2,153



8,722


  Data processing

2,718



2,843



2,591



2,657



2,772



10,863


  Marketing

1,065



1,052



810



973



888



3,723


  Communication

481



502



531



558



570



2,161


  Professional services

1,813



1,833



4,092



1,727



1,970



9,622


  State intangible tax

639



598



579



577



577



2,331


  FDIC assessments

1,132



1,139



1,103



1,114



1,090



4,446


  Loss (gain) - other real estate owned

(190)



772



196



419



474



1,861


  Loss sharing expense

297



414



574



576



301



1,865


  Other

5,980



5,977



8,073



6,135



5,327



25,512


      Total noninterest expenses

50,720



51,284



52,992



48,786



48,068



201,130


Income before income taxes

29,692



28,754



27,875



28,233



26,071



110,933


Income tax expense

9,878



8,934



9,202



9,284



8,450



35,870


      Net income

$

19,814



$

19,820



$

18,673



$

18,949



$

17,621



$

75,063














ADDITIONAL DATA












Net earnings per share - basic

$

0.32



$

0.33



$

0.31



$

0.31



$

0.29



$

1.23


Net earnings per share - diluted

$

0.32



$

0.32



$

0.30



$

0.31



$

0.29



$

1.21


Dividends declared per share

$

0.16



$

0.16



$

0.16



$

0.16



$

0.16



$

0.64














Return on average assets

0.98

%


0.99

%


0.97

%


1.05

%


0.99

%


1.00

%

Return on average shareholders' equity

9.70

%


9.62

%


9.12

%


9.49

%


9.06

%


9.33

%













Interest income

$

74,795



$

73,232



$

68,675



$

63,844



$

64,008



$

269,759


Tax equivalent adjustment

1,052



1,046



1,000



988



983



4,017


   Interest income - tax equivalent

75,847



74,278



69,675



64,832



64,991



273,776


Interest expense

8,240



7,149



5,516



5,170



5,422



23,257


   Net interest income - tax equivalent

$

67,607



$

67,129



$

64,159



$

59,662



$

59,569



$

250,519














Net interest margin

3.62

%


3.63

%


3.61

%


3.56

%


3.61

%


3.60

%

Net interest margin (fully tax equivalent) (1)

3.68

%


3.69

%


3.67

%


3.62

%


3.67

%


3.66

%













Full-time equivalent employees

1,390



1,400



1,394



1,366



1,353
















(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% 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)
















Mar. 31,


Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,


% Change


% Change


2016


2015


2015


2015


2015


Linked Qtr.


Comparable Qtr.

ASSETS














     Cash and due from banks

$

102,675



$

114,841



$

112,298



$

116,318



$

111,011



(10.6)

%


(7.5)

%

     Interest-bearing deposits with other banks

15,582



33,734



24,191



41,027



25,350



(53.8)

%


(38.5)

%

     Investment securities available-for-sale

1,164,319



1,190,642



1,069,667



955,764



892,169



(2.2)

%


30.5

%

     Investment securities held-to-maturity

702,315



726,259



756,035



791,839



839,666



(3.3)

%


(16.4)

%

     Other investments

53,255



53,725



53,431



53,585



53,393



(0.9)

%


(0.3)

%

     Loans held for sale

15,369



20,957



26,287



21,151



14,937



(26.7)

%


2.9

%

     Loans and leases














       Commercial and industrial

1,744,732



1,663,102



1,637,467



1,315,087



1,298,874



4.9

%


34.3

%

       Lease financing

101,135



93,986



82,679



84,723



81,796



7.6

%


23.6

%

       Real estate - construction

341,453



311,712



276,240



229,256



227,969



9.5

%


49.8

%

       Real estate - commercial

2,261,857



2,258,297



2,169,662



2,171,806



2,120,084



0.2

%


6.7

%

       Real estate - residential

508,512



512,311



506,653



506,391



496,852



(0.7)

%


2.3

%

       Home equity

466,010



466,629



463,629



463,222



456,278



(0.1)

%


2.1

%

       Installment

41,627



41,506



39,974



43,073



43,798



0.3

%


(5.0)

%

       Credit card

39,283



41,217



39,759



39,216



37,886



(4.7)

%


3.7

%

          Total loans

5,504,609



5,388,760



5,216,063



4,852,774



4,763,537



2.1

%


15.6

%

       Less














          Allowance for loan and lease losses

53,732



53,398



53,332



52,876



53,076



0.6

%


1.2

%

                Net loans

5,450,877



5,335,362



5,162,731



4,799,898



4,710,461



2.2

%


15.7

%

     Premises and equipment

138,036



136,603



139,020



139,170



140,477



1.0

%


(1.7)

%

     Goodwill and other intangibles

211,533



211,865



211,732



145,465



145,586



(0.2)

%


45.3

%

     FDIC indemnification asset

16,256



17,630



18,931



20,338



20,397



(7.8)

%


(20.3)

%

     Accrued interest and other assets

323,337



305,793



306,210



298,817



292,349



5.7

%


10.6

%

       Total Assets

$

8,193,554



$

8,147,411



$

7,880,533



$

7,383,372



$

7,245,796



0.6

%


13.1

%















LIABILITIES














     Deposits














       Interest-bearing demand

$

1,430,963



$

1,414,291



$

1,330,673



$

1,175,219



$

1,214,882



1.2

%


17.8

%

       Savings

1,922,892



1,945,805



1,979,627



1,947,566



1,922,815



(1.2)

%


0.0

%

       Time

1,414,313



1,406,124



1,440,223



1,262,881



1,277,291



0.6

%


10.7

%

          Total interest-bearing deposits

4,768,168



4,766,220



4,750,523



4,385,666



4,414,988



0.0

%


8.0

%

       Noninterest-bearing

1,408,609



1,413,404



1,330,905



1,330,149



1,299,602



(0.3)

%


8.4

%

          Total deposits

6,176,777



6,179,624



6,081,428



5,715,815



5,714,590



0.0

%


8.1

%

     Federal funds purchased and securities sold under agreements to repurchase

75,499



89,325



62,317



68,349



68,142



(15.5)

%


10.8

%

     FHLB short-term borrowings

894,400



849,100



701,200



641,700



523,500



5.3

%


70.9

%

          Total short-term borrowings

969,899



938,425



763,517



710,049



591,642



3.4

%


63.9

%

     Long-term debt

119,556



119,540



119,515



47,084



47,598



0.0

%


151.2

%

          Total borrowed funds

1,089,455



1,057,965



883,032



757,133



639,240



3.0

%


70.4

%

     Accrued interest and other liabilities

100,735



100,446



103,061



108,041



96,224



0.3

%


4.7

%

       Total Liabilities

7,366,967



7,338,035



7,067,521



6,580,989



6,450,054



0.4

%


14.2

%















SHAREHOLDERS' EQUITY














     Common stock

567,497



571,155



570,025



571,501



570,623



(0.6)

%


(0.5)

%

     Retained earnings

398,224



388,240



378,258



369,462



360,390



2.6

%


10.5

%

     Accumulated other comprehensive loss

(23,209)



(30,580)



(17,219)



(20,715)



(17,054)



(24.1)

%


36.1

%

     Treasury stock, at cost

(115,925)



(119,439)



(118,052)



(117,865)



(118,217)



(2.9)

%


(1.9)

%

       Total Shareholders' Equity

826,587



809,376



813,012



802,383



795,742



2.1

%


3.9

%

       Total Liabilities and Shareholders' Equity

$

8,193,554



$

8,147,411



$

7,880,533



$

7,383,372



$

7,245,796



0.6

%


13.1

%















 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)





Quarterly Averages



Mar. 31,


Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,



2016


2015


2015


2015


2015


ASSETS











     Cash and due from banks

$

117,782



$

119,881



$

114,279



$

114,024



$

112,841



     Federal funds sold

0



0



0



0



0



     Interest-bearing deposits with other banks

24,291



18,920



37,468



19,960



21,255



     Investment securities

1,938,772



1,934,173



1,848,083



1,782,785



1,762,622



     Loans held for sale

13,216



18,677



15,185



9,292



8,606



     Loans and leases











       Commercial and industrial

1,657,279



1,612,485



1,464,508



1,318,408



1,300,869



       Lease financing

94,935



89,200



83,300



82,578



78,063



       Real estate - construction

322,600



295,574



259,972



226,314



215,380



       Real estate - commercial

2,270,686



2,180,015



2,164,917



2,117,450



2,129,434



       Real estate - residential

509,422



505,208



500,544



497,350



496,451



       Home equity

466,722



465,131



462,283



459,414



458,083



       Installment

41,698



41,148



42,008



43,393



45,376



       Credit card

41,254



41,027



39,991



39,272



38,409



          Total loans

5,404,596



5,229,788



5,017,523



4,784,179



4,762,065



       Less











          Allowance for loan and lease losses

54,882



53,731



54,398



54,662



53,648



                Net loans

5,349,714



5,176,057



4,963,125



4,729,517



4,708,417



     Premises and equipment

138,377



138,689



139,457



140,117



141,153



     Goodwill and other intangibles

211,707



211,722



179,333



145,500



145,689



     FDIC indemnification asset

17,138



18,437



19,848



20,744



22,112



     Accrued interest and other assets

307,948



313,722



294,611



281,947



278,618



       Total Assets

$

8,118,945



$

7,950,278



$

7,611,389



$

7,243,886



$

7,201,313














LIABILITIES











     Deposits











       Interest-bearing demand

$

1,391,591



$

1,423,915



$

1,230,621



$

1,220,391



$

1,176,263



       Savings

1,938,206



2,005,100



2,015,373



1,950,127



1,914,723



       Time

1,419,456



1,416,041



1,369,892



1,275,730



1,270,539



          Total interest-bearing deposits

4,749,253



4,845,056



4,615,886



4,446,248



4,361,525



       Noninterest-bearing

1,386,768



1,402,283



1,344,049



1,325,485



1,286,067



          Total deposits

6,136,021



6,247,339



5,959,935



5,771,733



5,647,592



     Federal funds purchased and securities sold

under agreements to repurchase

89,349



79,354



68,505



67,664



77,269



     FHLB short-term borrowings

856,837



564,522



606,618



472,295



565,918



          Total short-term borrowings

946,186



643,876



675,123



539,959



643,187



     Long-term debt

119,553



119,532



71,583



47,266



47,825



       Total borrowed funds

1,065,739



763,408



746,706



587,225



691,012



     Accrued interest and other liabilities

95,597



121,775



92,352



84,330



74,198



       Total Liabilities

7,297,357



7,132,522



6,798,993



6,443,288



6,412,802














SHAREHOLDERS' EQUITY











     Common stock

570,558



570,510



570,723



571,078



573,932



     Retained earnings

395,756



385,295



378,160



365,847



355,848



     Accumulated other comprehensive loss

(26,165)



(18,962)



(19,725)



(18,242)



(20,163)



     Treasury stock, at cost

(118,561)



(119,087)



(116,762)



(118,085)



(121,106)



       Total Shareholders' Equity

821,588



817,756



812,396



800,598



788,511



       Total Liabilities and Shareholders' Equity

$

8,118,945



$

7,950,278



$

7,611,389



$

7,243,886



$

7,201,313














 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)

(Dollars in thousands)

(Unaudited)


















 Quarterly Averages















March 31, 2016


December 31, 2015


March 31, 2015


 Linked Qtr. Income Variance


 Comparable Qtr. Income Variance



Balance


Yield


Balance


Yield


Balance


Yield


Rate


Volume


Total


Rate


Volume


Total

Earning assets

























    Investments:

























      Investment securities


$

1,938,772



2.59

%


$

1,934,173



2.44

%


$

1,762,622



2.47

%


$

749



$

(108)



$

641



$

546



$

1,264



$

1,810


      Interest-bearing deposits with other banks


24,291



0.53

%


18,920



0.29

%


21,255



0.27

%


11



7



18



14



4



18


    Gross loans (2)


5,434,950



4.59

%


5,266,902



4.62

%


4,792,783



4.51

%


(357)



1,261



904



1,003



7,956



8,959


       Total earning assets


7,398,013



4.06

%


7,219,995



4.02

%


6,576,660



3.95

%


403



1,160



1,563



1,563



9,224



10,787



























Nonearning assets

























    Allowance for loan and lease losses


(54,882)





(53,731)





(53,648)
















    Cash and due from banks


117,782





119,881





112,841
















    Accrued interest and other assets


658,032





664,133





565,460
















       Total assets


$

8,118,945





$

7,950,278





$

7,201,313









































Interest-bearing liabilities

























    Deposits:

























      Interest-bearing demand


$

1,391,591



0.16

%


$

1,423,915



0.13

%


$

1,176,263



0.08

%













      Savings


1,938,206



0.26

%


2,005,100



0.20

%


1,914,723



0.27

%













      Time


1,419,456



1.05

%


1,416,041



1.03

%


1,270,539



1.07

%













    Total interest-bearing deposits


4,749,253



0.47

%


4,845,056



0.42

%


4,361,525



0.45

%


$

532



$

(174)



$

358



$

203



$

507



$

710


    Borrowed funds

























      Short-term borrowings


946,186



0.50

%


643,876



0.27

%


643,187



0.19

%


371



365



736



484



383



867


      Long-term debt


119,553



5.17

%


119,532



5.12

%


47,825



2.54

%


14



(17)



(3)



310



931



1,241


        Total borrowed funds


1,065,739



1.02

%


763,408



1.03

%


691,012



0.35

%


385



348



733



794



1,314



2,108


       Total interest-bearing liabilities


5,814,992



0.57

%


5,608,464



0.51

%


5,052,537



0.44

%


917



174



1,091



997



1,821



2,818



























Noninterest-bearing liabilities

























    Noninterest-bearing demand deposits


1,386,768





1,402,283





1,286,067
















    Other liabilities


95,597





121,775





74,198
















    Shareholders' equity


821,588





817,756





788,511
















       Total liabilities & shareholders' equity


$

8,118,945





$

7,950,278





$

7,201,313









































Net interest income (1)


$

66,555





$

66,083





$

58,586





$

(514)



$

986



$

472



$

566



$

7,403



$

7,969


Net interest spread (1)




3.49

%




3.51

%




3.51

%













Net interest margin (1)




3.62

%




3.63

%




3.61

%































































(1) Not tax equivalent.

(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.


 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)






















Mar. 31,


Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,


2016


2015


2015


2015


2015

ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY







Balance at beginning of period

$

53,398



$

53,332



$

52,876



$

53,076



$

52,858


  Provision for loan and lease losses

1,655



1,864



2,647



3,070



2,060


  Gross charge-offs










    Commercial and industrial

329



622



536



510



1,481


    Real estate - construction

0



0



85



0



0


    Real estate - commercial

432



1,137



941



2,515



208


    Real estate - residential

39



31



101



250



314


    Home equity

273



300



322



163



700


    Installment

54



128



124



12



131


    Other

240



242



276



237



294


    Covered / formerly covered loans

1,075



3,818



1,577



1,585



1,916


      Total gross charge-offs

2,442



6,278



3,962



5,272



5,044


  Recoveries










    Commercial and industrial

163



386



357



185



44


    Real estate - construction

7



91



0



10



29


    Real estate - commercial

346



597



444



179



354


    Real estate - residential

62



192



87



23



64


    Home equity

164



102



195



129



154


    Installment

35



36



59



44



60


    Other

81



74



52



71



45


    Covered / formerly covered loans

263



3,002



577



1,361



2,452


      Total recoveries

1,121



4,480



1,771



2,002



3,202


  Total net charge-offs

1,321



1,798



2,191



3,270



1,842


Ending allowance for loan and lease losses

$

53,732



$

53,398



$

53,332



$

52,876



$

53,076












NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)







  Commercial and industrial

0.04

%


0.06

%


0.05

%


0.10

%


0.45

%

  Real estate - construction

(0.01)

%


(0.12)

%


0.13

%


(0.02)

%


(0.05)

%

  Real estate - commercial

0.02

%


0.10

%


0.10

%


0.48

%


(0.03)

%

  Real estate - residential

(0.02)

%


(0.14)

%


0.01

%


0.21

%


0.24

%

  Home equity

0.10

%


0.18

%


0.12

%


0.03

%


0.53

%

  Installment

0.19

%


0.94

%


0.65

%


(0.32)

%


0.68

%

  Other

0.48

%


0.52

%


0.74

%


0.55

%


0.88

%

  Covered / formerly covered loans

1.51

%


1.40

%


1.60

%


0.33

%


(0.74)

%

     Total net charge-offs

0.10

%


0.14

%


0.17

%


0.27

%


0.16

%











COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

  Nonaccrual loans (1)










    Commercial and industrial

$

3,757



$

8,231



$

7,191



$

6,683



$

6,926


    Real estate - construction

0



0



79



223



223


    Real estate - commercial

8,178



9,059



17,228



21,186



29,925


    Real estate - residential

4,243



5,027



4,940



5,257



6,100


    Home equity

3,018



2,787



2,702



2,735



2,462


    Installment

113



127



321



305



278


    Lease financing

121



122



0



0



0


   Covered / formerly covered loans

2,577



2,644



3,252



3,284



3,239


      Nonaccrual loans

22,007



27,997



35,713



39,673



49,153


  Accruing troubled debt restructurings (TDRs)

30,127



28,876



20,226



20,084



15,429


     Total nonperforming loans

52,134



56,873



55,939



59,757



64,582


  Other real estate owned (OREO)

11,939



13,254



15,187



16,401



20,906


     Total nonperforming assets

64,073



70,127



71,126



76,158



85,488


  Accruing loans past due 90 days or more

59



108



58



70



85


     Total underperforming assets

$

64,132



$

70,235



$

71,184



$

76,228



$

85,573


  Classified assets

$

113,883



$

106,468



$

97,022



$

106,280



$

109,090


  Covered / formerly covered classified assets

20,057



25,963



33,110



33,651



44,727


Total classified assets

$

133,940



$

132,431



$

130,132



$

139,931



$

153,817












CREDIT QUALITY RATIOS







Allowance for loan and lease losses to










     Nonaccrual loans

244.16

%


190.73

%


149.33

%


133.28

%


107.98

%

     Nonperforming loans

103.07

%


93.89

%


95.34

%


88.49

%


82.18

%

     Total ending loans

0.98

%


0.99

%


1.02

%


1.09

%


1.11

%

Allowance and loan marks, net of indemnification asset, to total loans

1.08

%


1.11

%


1.17

%


1.27

%


1.43

%

Nonperforming loans to total loans

0.95

%


1.06

%


1.07

%


1.23

%


1.36

%

Nonperforming assets to










     Ending loans, plus OREO

1.16

%


1.30

%


1.36

%


1.56

%


1.79

%

     Total assets

0.78

%


0.86

%


0.90

%


1.03

%


1.18

%

Nonperforming assets, excluding accruing TDRs to










     Ending loans, plus OREO

0.62

%


0.76

%


0.97

%


1.15

%


1.46

%

     Total assets

0.41

%


0.51

%


0.65

%


0.76

%


0.97

%











(1)  Nonaccrual loans include nonaccrual TDRs of $7.5 million, $9.3 million, $13.6 million, $14.1 million, and $20.3 million, as of March 31, 2016, December 31, 2015, September 30, 2015, June 30. 2015, and March 31, 2015, respectively.

 


FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)












Mar. 31,


Dec. 31,


Sep. 30,


Jun. 30,


Mar. 31,


2016


2015


2015


2015


2015

PER COMMON SHARE










Market Price










  High

$

18.36



$

20.72



$

19.69



$

18.55



$

18.30


  Low

$

14.91



$

17.83



$

17.55



$

16.68



$

16.52


  Close

$

18.18



$

18.07



$

19.08



$

17.94



$

17.81












Average shares outstanding - basic

61,036,797



60,985,096



61,135,749



61,115,802



61,013,489


Average shares outstanding - diluted

61,840,247



61,861,182



61,987,795



61,915,294



61,731,844


Ending shares outstanding

61,855,027



61,641,680



61,713,633



61,707,847



61,686,887












Total shareholders' equity

$

826,587



$

809,376



$

813,012



$

802,383



$

795,742












REGULATORY CAPITAL (1)

Preliminary









Common equity tier 1 capital

$

658,001



$

648,748



$

638,574



$

697,139



$

686,191


Common equity tier 1 capital ratio

10.16

%


10.28

%


10.51

%


12.34

%


12.29

%

Tier 1 capital

$

658,105



$

648,852



$

638,678



$

697,243



$

686,295


Tier 1 ratio

10.16

%


10.29

%


10.52

%


12.35

%


12.29

%

Total capital

$

831,924



$

822,431



$

812,029



$

751,818



$

740,967


Total capital ratio

12.84

%


13.04

%


13.37

%


13.31

%


13.27

%

Total capital in excess of minimum requirement

$

273,135



$

317,780



$

326,117



$

300,006



$

294,290


Total risk-weighted assets

$

6,478,716



$

6,308,139



$

6,073,899



$

5,647,658



$

5,583,461


Leverage ratio

8.27

%


8.33

%


8.58

%


9.77

%


9.67

%











OTHER CAPITAL RATIOS










Ending shareholders' equity to ending assets

10.09

%


9.93

%


10.32

%


10.87

%


10.98

%

Ending tangible shareholders' equity to ending tangible assets

7.71

%


7.53

%


7.84

%


9.08

%


9.16

%

Average shareholders' equity to average assets

10.12

%


10.29

%


10.67

%


11.05

%


10.95

%

Average tangible shareholders' equity to average tangible assets

7.71

%


7.83

%


8.12

%


9.23

%


9.11

%











REPURCHASE PROGRAM (2)










Shares repurchased

0



91,032



148,935



0



0


Average share repurchase price

N/A



$

18.85



$

18.68



N/A



N/A


Total cost of shares repurchased

N/A



$

1,716



$

2,783



N/A



N/A












(1) 2015 amounts and ratios are calculated under the Basel III standardized approach

(2) Represents share repurchases as part of publicly announced plans.

N/A = Not applicable

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/first-financial-bancorp-reports-first-quarter-2016-financial-results-300255635.html

SOURCE First Financial Bancorp

Copyright CNW Group 2016