First Financial Bancorp Reports Fourth Quarter and Full Year 2014 Financial Results
Jan 29, 2015, 04:15 ET
CINCINNATI, Jan. 29, 2015 /PRNewswire/ -- First Financial Bancorp (Nasdaq: FFBC) ("First Financial" or the "Company") announced today financial and operational results for the fourth quarter 2014 and for the twelve month period ended December 31, 2014.
Fourth quarter net income was $18.6 million and earnings per diluted common share were $0.30. This compares with third quarter net income of $15.3 million and earnings per diluted common share of $0.26 and fourth quarter 2013 net income of $3.8 million and earnings per diluted common share of $0.07.
For the twelve month period ended December 31, 2014, net income was $65.0 million and earnings per diluted common share were $1.09 as compared to net income of $48.3 million and earnings per diluted common share of $0.83 for the twelve month period ended December 31, 2013.
- Continued solid quarterly performance
- Quarterly results included several acquisition-related items and other items not expected to recur which reduced pre-tax income by $1.5 million or approximately $0.02 per diluted share
- Return on average assets of 1.02%; 1.07% as adjusted for acquisition-related and other items
- Return on average tangible common equity of 11.63%; 12.24% as adjusted for acquisition-related and other items
- Columbus, Ohio market integration complete
- Data platform conversions are now complete for all three banks acquired by the Company during 2014
- Merger-related costs have largely been recognized and were in line with expectations
- Majority of identified efficiency opportunities have been fully implemented
- Loan and deposit growth in line with expectations
- Fourth quarter average total loans increased $358.4 million, or 8.2%, and average total deposits increased by $442.8 million, or 8.5%, compared to third quarter averages largely related to the acquisitions in the Columbus, Ohio market and strong third quarter organic loan and deposit growth
The board of directors has authorized a quarterly dividend of $0.16 per common share for the next regularly scheduled dividend, payable on April 1, 2015 to shareholders of record as of February 27, 2015.
Claude Davis, Chief Executive Officer, commented, "We are extremely pleased with our solid earnings for the fourth quarter and for the full year 2014 in light of the prolonged low interest rate environment and continued runoff of higher yielding loans acquired under FDIC Shared Loss Agreements.
"Our loan production remains strong across our core product sets and we have been able to successfully grow low-cost deposits. We continue to take advantage of strategic pricing opportunities and to introduce new products to better meet the financial needs of our clients. Likewise, our disciplined approach to expense management provides a distinct advantage as we compete for new business.
"Although the benefit of commercial loss share coverage that we have enjoyed for the past five years from the FDIC-assisted transactions has now expired, we are confident in our ability to manage the limited exposure associated with the remaining portfolio.
"With the introduction of the First Financial brand into the Columbus, Ohio market through the acquisitions and successful integrations during 2014, we are excited about the future. Our expansion into Columbus complements our metro-centric footprint of Cincinnati, Dayton, Indianapolis and Ft. Wayne. We believe these markets provide the platform to generate solid organic loan, deposit and fee income growth.
"As we look forward to 2015, our focus remains centered on serving the financial needs of our commercial, small business, consumer and wealth management clients. We will continue to listen to our clients, be responsive to their needs and will be innovative in our approach to serving them."
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income for the fourth quarter was $61.1 million as compared to $58.4 million for the third quarter 2014 and $55.8 million for the fourth quarter 2013. Compared to the linked quarter, total interest income increased $3.4 million, or 5.3%, while total interest expense increased $0.6 million, or 11.7%. Net interest margin was 3.67% for the fourth quarter, compared to 3.66% for the third quarter 2014 and 3.90% for the fourth quarter 2013. Excluding $0.4 million of higher interest income related to loans that returned to accrual status during the period, net interest margin was 3.64% for the fourth quarter.
Interest income earned on loans increased $3.4 million, or 6.3%, compared to the prior quarter. This increase was driven by a $358.4 million, or 8.2%, increase in average loan balances as a result of the Columbus acquisitions, higher loan fee income and strong, organic loan growth during the period, partially offset by continued runoff of the covered and formerly covered loan portfolio.
Interest income earned from investment securities decreased by $0.2 million compared to the prior quarter as average balances declined $53.3 million, or 2.9%. The decline in investment securities balances was partially offset by a 3 bps increase in the yield earned on the portfolio to 2.40%.
The increase in total interest expense was due to a $331.3 million, or 8.2%, increase in average interest-bearing deposits as well as a 4 bps increase in the related cost of funds. This increase, bringing the cost of interest-bearing deposits to 45 bps, is a result of longer term funding strategies and the full quarterly impact of the Columbus acquisitions. Average borrowed funds decreased $162.6 million, or 18.1%, compared to the linked quarter and the related cost of funds decreased by 4 bps from 36 bps to 32 bps.
NONINTEREST INCOME
The following table presents noninterest income for the three months ended December 31, 2014 and for the trailing four quarters, adjusted to exclude the impact of covered and formerly covered loan activity and other select items.
| Table I |
|||||||||||||||||||||
| For the Three Months Ended |
|||||||||||||||||||||
| December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||
| (Dollars in thousands) |
2014 |
2014 |
2014 |
2014 |
2013 |
||||||||||||||||
| Total noninterest income |
$ |
16,942 |
$ |
16,511 |
$ |
16,337 |
$ |
14,175 |
$ |
13,043 |
|||||||||||
| Selected components of noninterest income |
|||||||||||||||||||||
| Accelerated discount on covered / formerly covered loans1 |
1,759 |
789 |
621 |
1,015 |
1,572 |
||||||||||||||||
| FDIC loss sharing income |
(43) |
(192) |
1,108 |
(508) |
(3,385) |
||||||||||||||||
| Gain on sale of investment securities |
20 |
— |
— |
50 |
— |
||||||||||||||||
| Other items not expected to recur |
— |
97 |
— |
— |
— |
||||||||||||||||
| Total noninterest income excluding items noted above |
$ |
15,206 |
$ |
15,817 |
$ |
14,608 |
$ |
13,618 |
$ |
14,856 |
|||||||||||
| 1 Net of the related valuation adjustment on the FDIC indemnification asset |
|||||||||||||||||||||
Excluding the items highlighted in Table I, noninterest income earned in the fourth quarter was $15.2 million compared to $15.8 million in the third quarter 2014 and $14.9 million in the fourth quarter 2013. The $0.6 million decrease compared to the linked quarter was driven primarily by a $0.3 million decrease in fee income related to the Company's client derivative program, a $0.2 million decrease in deposit service charges and a $0.2 million decrease in bankcard income, partially offset by a $0.2 million increase in fees related to the Company's trust & wealth management business.
NONINTEREST EXPENSE
The following table presents noninterest expense for the three months ended December 31, 2014 and for the trailing four quarters, adjusted to exclude the impact of covered and formerly covered asset activity and other select items.
| Table II |
||||||||||||||||||||||
| For the Three Months Ended |
||||||||||||||||||||||
| December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||||||||||
| (Dollars in thousands) |
2014 |
2014 |
2014 |
2014 |
2013 |
|||||||||||||||||
| Total noninterest expense |
$ |
49,662 |
$ |
51,419 |
$ |
47,111 |
$ |
47,842 |
$ |
70,285 |
||||||||||||
| Selected components of noninterest expense |
||||||||||||||||||||||
| Loss (gain) - covered / formerly covered REO |
(35) |
(1,433) |
398 |
33 |
946 |
|||||||||||||||||
| Loss sharing expense |
650 |
1,002 |
1,465 |
1,569 |
1,495 |
|||||||||||||||||
| Pension settlement charges |
— |
— |
— |
— |
462 |
|||||||||||||||||
| Expenses associated with efficiency initiative |
123 |
309 |
(59) |
350 |
1,450 |
|||||||||||||||||
| FDIC indemnification asset valuation adjustment |
— |
— |
— |
— |
22,417 |
|||||||||||||||||
| Acquisition-related expenses |
1,315 |
4,182 |
517 |
620 |
284 |
|||||||||||||||||
| Other items not expected to recur |
41 |
728 |
— |
465 |
— |
|||||||||||||||||
| Total noninterest expense excluding items noted above |
$ |
47,568 |
$ |
46,631 |
$ |
44,790 |
$ |
44,805 |
$ |
43,231 |
||||||||||||
Excluding the items highlighted in Table II, noninterest expense was $47.6 million in the fourth quarter of 2014, $46.6 million in the third quarter of 2014 and $43.2 million in the fourth quarter 2013. The $0.9 million increase compared to the linked quarter was primarily due to a $0.3 million increase in incentive compensation during the period, $0.3 million related to a banking center relocation and a $0.1 million increase in marketing expenses during the quarter. Acquisition-related expenses during the period of $1.3 million included $0.8 million of personnel costs, $0.3 million of data processing related expenses and $0.2 million of other miscellaneous expenses.
INCOME TAXES
For the fourth quarter, income tax expense was $7.8 million, resulting in an effective tax rate of 29.5%, compared with income tax expense of $7.2 million and an effective tax rate of 32.0% during the third quarter 2014 and income tax benefit of $1.2 million and an effective tax rate of -47.4% during the fourth quarter 2013. For the full year 2014, the Company's effective tax rate was 31.6%. While the effective tax rate may fluctuate from quarter to quarter due to tax jurisdiction changes and the level of tax-enhanced assets, the normalized effective tax rate in future periods is expected to be in the range of 32.0% - 34.0%.
CREDIT QUALITY
Table III below and the paragraphs that follow present certain credit quality metrics related to the Company's loan portfolio. Effective October 1, 2014, the five-year loss sharing coverage period for non-single family assets expired and the majority of the Company's formerly covered assets were no longer subject to FDIC loss sharing protection. As a result, credit quality metrics for the three months ended December 31, 2014 have been updated to include those formerly covered assets, as well as the remaining covered assets that are subject to FDIC loss sharing protection for five more years. This reclassification resulted in the addition of $11.5 million of allowance for loan and lease losses, $3.9 million of nonaccrual loans, $2.5 million of net charge-offs, $12.0 million of OREO, $45.7 million of classified assets and $4.7 million of delinquent loans during the fourth quarter. Credit quality metrics for the preceding four quarters exclude covered assets due to the associated FDIC loss sharing protection in effect during those periods.
| Table III |
Excludes covered assets* |
||||||||||||||||||||
| As of or for the Three Months Ended |
|||||||||||||||||||||
| December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||
| (Dollars in thousands) |
2014 |
2014 |
2014 |
2014 |
2013 |
||||||||||||||||
| Total nonaccrual loans 1 |
$ |
48,469 |
$ |
41,646 |
$ |
32,418 |
$ |
35,334 |
$ |
37,605 |
|||||||||||
| Troubled debt restructurings - accruing |
15,928 |
13,369 |
12,607 |
13,400 |
15,094 |
||||||||||||||||
| Total nonperforming loans |
64,397 |
55,015 |
45,025 |
48,734 |
52,699 |
||||||||||||||||
| Total nonperforming assets |
87,071 |
66,331 |
58,395 |
61,477 |
72,505 |
||||||||||||||||
| Nonperforming assets as a % of: |
|||||||||||||||||||||
| Period-end loans plus OREO |
1.81 |
% |
1.49 |
% |
1.59 |
% |
1.70 |
% |
2.06 |
% |
|||||||||||
| Total assets |
1.21 |
% |
0.90 |
% |
0.89 |
% |
0.95 |
% |
1.13 |
% |
|||||||||||
| Nonperforming assets ex. accruing TDRs as a % of: |
|||||||||||||||||||||
| Period-end loans plus OREO |
1.48 |
% |
1.19 |
% |
1.25 |
% |
1.33 |
% |
1.63 |
% |
|||||||||||
| Total assets |
0.99 |
% |
0.72 |
% |
0.70 |
% |
0.74 |
% |
0.89 |
% |
|||||||||||
| Nonperforming loans as a % of total loans |
1.35 |
% |
1.24 |
% |
1.23 |
% |
1.35 |
% |
1.50 |
% |
|||||||||||
| Provision for loan and lease losses |
$ |
1,088 |
$ |
1,093 |
$ |
29 |
$ |
1,159 |
$ |
1,851 |
|||||||||||
| Provision for covered / formerly covered loan and lease losses |
964 |
* |
* |
* |
* |
||||||||||||||||
| Total provision for loan and lease losses |
$ |
2,052 |
$ |
1,093 |
$ |
29 |
$ |
1,159 |
$ |
1,851 |
|||||||||||
| Allowance for uncovered loan & lease losses |
$ |
52,858 |
$ |
42,454 |
$ |
42,027 |
$ |
43,023 |
$ |
43,829 |
|||||||||||
| Allowance for loan & lease losses as a % of: |
|||||||||||||||||||||
| Total loans |
1.11 |
% |
0.95 |
% |
1.15 |
% |
1.19 |
% |
1.25 |
% |
|||||||||||
| Nonaccrual loans |
109.1 |
% |
101.9 |
% |
129.6 |
% |
121.8 |
% |
116.6 |
% |
|||||||||||
| Nonperforming loans |
82.1 |
% |
77.2 |
% |
93.3 |
% |
88.3 |
% |
83.2 |
% |
|||||||||||
| Allowance and loan marks, net of indemnification asset, as a % of total loans |
1.51 |
% |
* |
* |
* |
* |
|||||||||||||||
| Total net charge-offs |
$ |
3,183 |
$ |
666 |
$ |
1,025 |
$ |
1,965 |
$ |
3,536 |
|||||||||||
| Annualized net-charge-offs as a % of average |
|||||||||||||||||||||
| loans & leases |
0.27 |
% |
0.07 |
% |
0.11 |
% |
0.23 |
% |
0.41 |
% |
|||||||||||
| 1 Includes nonaccrual troubled debt restructurings |
|||||||||||||||||||||
| * Amounts reclassified in the fourth quarter of 2014 due to the expiration of FDIC loss sharing coverage on non-single family assets effective October 1, 2014. |
|||||||||||||||||||||
Net Charge-offs
For the fourth quarter, net charge-offs totaled $3.2 million, an increase of $2.5 million, or 377.9% compared to the linked quarter. Excluding the impact from covered / formerly covered loans during the period, net charge-offs increased $0.1 million during the quarter to $0.7 million, or 6 bps as a percentage of loans on an annualized basis, as a $0.4 million decline in charge-offs was largely offset by a similar decline in recoveries during the period.
Nonperforming Assets
Nonaccrual loans, including nonaccrual troubled debt restructurings, increased $6.8 million, or 16.4%, to $48.5 million as of December 31, 2014 from $41.6 million as of September 30, 2014. Excluding the impact from covered / formerly covered loans, the increase in nonaccrual loans was primarily related to the addition of a single commercial real estate relationship totaling $1.4 million during the period.
Accruing troubled debt restructurings increased $2.6 million, or 19.1%, to $15.9 million as of December 31, 2014 from $13.4 million as of September 30, 2014. The increase in accruing troubled debt restructurings during the fourth quarter was primarily related to the addition of a $1.7 million commercial real estate credit.
OREO increased $11.4 million, or 100.4%, to $22.7 million during the fourth quarter due to the addition of covered / formerly covered OREO during the period. In addition to covered and previously covered OREO included during the quarter, $0.5 million of other additions were offset by $0.7 million of sales and $0.5 million of valuation adjustments during the period.
Total classified assets increased $48.9 million, or 46.2%, to $154.8 million as of December 31, 2014 from $105.9 million as of September 30, 2014. Excluding the impact from covered / formerly covered assets, classified assets increased $3.2 million, or 3.0% during the period. Classified assets are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse.
Delinquent Loans
As of December 31, 2014, loans 30-to-89 days past due totaled $17.1 million, or 0.36% of period-end loans, compared to $12.1 million, or 0.27%, as of September 30, 2014 and $13.6 million, or 0.39%, as of December 31, 2013. The increase in loans 30-to-89 days past due was driven primarily by the addition of covered / formerly covered loans during the period.
Provision for Loan & Lease Losses
Fourth quarter provision expense was $2.1 million. Excluding the impact from covered / formerly covered loans, provision expense was unchanged from the third quarter.
The total allowance for loan and lease losses as of December 31, 2014 was $52.9 million, or 1.11% as a percentage of period-end loans, compared to 0.95% as of September 30, 2014. Excluding the impact from covered / formerly covered loans, the allowance for loan and lease losses as of December 31, 2014 was $42.8 million, or 0.96% as a percentage of period-end loans.
Given the applications of acquisition accounting and the resulting estimated fair value marks embedded in the carrying value of loans acquired in the Columbus transactions during the third quarter, First Financial has experienced an increase in loan balances, without a corresponding increase in the allowance. As such, the Company considers the total allowance for loan and lease losses and the remaining net fair value marks on all acquired loans, less the remaining indemnification asset balance, to be a relevant measure of the Company's loan loss protection. The balance of the Company's total allowance and loan marks, net of the indemnification asset, was 1.51% of total loans and leases as of December 31, 2014.
LOANS
The following table presents the loan portfolio as of December 31, 2014, September 30, 2014 and December 31, 2013.
| Table IV |
||||||||||||||||||||||
| As of |
||||||||||||||||||||||
| December 31, 2014 |
September 30, 2014 |
December 31, 2013 |
||||||||||||||||||||
| Percent |
Percent |
Percent |
||||||||||||||||||||
| (Dollars in thousands) |
Balance |
of Total |
Balance |
of Total |
Balance |
of Total |
||||||||||||||||
| Commercial |
$ |
1,315,114 |
27.5 |
% |
$ |
1,328,526 |
27.8 |
% |
$ |
1,077,984 |
27.2 |
% |
||||||||||
| Real estate - construction |
197,571 |
4.1 |
% |
195,524 |
4.1 |
% |
89,297 |
2.3 |
% |
|||||||||||||
| Real estate - commercial |
2,140,667 |
44.8 |
% |
2,135,968 |
44.7 |
% |
1,765,620 |
44.5 |
% |
|||||||||||||
| Real estate - residential |
501,894 |
10.5 |
% |
498,873 |
10.4 |
% |
433,664 |
10.9 |
% |
|||||||||||||
| Installment |
47,320 |
1.0 |
% |
51,131 |
1.1 |
% |
52,774 |
1.3 |
% |
|||||||||||||
| Home equity |
458,627 |
9.6 |
% |
460,957 |
9.6 |
% |
426,078 |
10.8 |
% |
|||||||||||||
| Credit card |
38,475 |
0.8 |
% |
38,042 |
0.8 |
% |
37,962 |
1.0 |
% |
|||||||||||||
| Lease financing |
77,567 |
1.6 |
% |
73,216 |
1.5 |
% |
80,135 |
2.0 |
% |
|||||||||||||
| Total loans |
$ |
4,777,235 |
100.0 |
% |
$ |
4,782,237 |
100.0 |
% |
$ |
3,963,514 |
100.0 |
% |
||||||||||
Total loans were $4.8 billion as of December 31, 2014, decreasing $5.0 million, or 0.1%, compared to the linked quarter and increasing $813.7 million, or 20.5%, compared to December 31, 2013. Average total loans for the fourth quarter increased by $358.4 million, or 8.2%, compared to the third quarter due to originated loan volume during the third quarter combined with the full quarterly impact of the Columbus acquisitions. Total loans decreased modestly during the quarter due primarily to continued runoff of the covered and formerly covered loan portfolio and late quarter payoff activity in the uncovered portfolio, partially offset by growth in the commercial real estate and lease financing portfolios.
INVESTMENTS
The following table presents a summary of the total investment portfolio at December 31, 2014.
| Table V |
|||||||||||||||||||||
| As of December 31, 2014 |
|||||||||||||||||||||
| Held-to- |
Available-for- |
Percent |
|||||||||||||||||||
| (Dollars in thousands) |
Maturity |
Sale |
Other |
Total |
of Portfolio |
||||||||||||||||
| Debt obligations of the U.S. Government |
$ |
— |
$ |
19,714 |
$ |
— |
$ |
19,714 |
1.1 |
% |
|||||||||||
| Debt obligations of U.S. Government Agency |
17,570 |
11,881 |
— |
29,451 |
1.7 |
% |
|||||||||||||||
| Residential Mortgage Backed Securities |
|||||||||||||||||||||
| Pass-through securities: |
|||||||||||||||||||||
| Agency fixed rate |
73,932 |
79,573 |
— |
153,505 |
8.7 |
% |
|||||||||||||||
| Agency adjustable rate |
140,268 |
13,635 |
— |
153,903 |
8.7 |
% |
|||||||||||||||
| Non-Agency fixed rate |
— |
8,240 |
— |
8,240 |
0.5 |
% |
|||||||||||||||
| Collateralized mortgage obligations: |
|||||||||||||||||||||
| Agency fixed rate |
308,874 |
236,696 |
— |
545,570 |
31.0 |
% |
|||||||||||||||
| Agency variable rate |
— |
90,549 |
— |
90,549 |
5.1 |
% |
|||||||||||||||
| Agency collateralized and insured municipal securities |
82,280 |
99,728 |
— |
182,008 |
10.3 |
% |
|||||||||||||||
| Commercial mortgage backed securities |
237,870 |
121,145 |
— |
359,015 |
20.4 |
% |
|||||||||||||||
| Municipal bond securities |
2,405 |
26,766 |
— |
29,171 |
1.7 |
% |
|||||||||||||||
| Corporate securities |
4,797 |
69,278 |
— |
74,075 |
4.2 |
% |
|||||||||||||||
| Asset-backed securities |
— |
54,840 |
— |
54,840 |
3.1 |
% |
|||||||||||||||
| Regulatory stock |
— |
— |
47,227 |
47,227 |
2.7 |
% |
|||||||||||||||
| Other |
— |
8,423 |
5,399 |
13,822 |
0.8 |
% |
|||||||||||||||
| $ |
867,996 |
$ |
840,468 |
$ |
52,626 |
$ |
1,761,090 |
100.0 |
% |
||||||||||||
The investment portfolio decreased $119.0 million, or 6.3%, to $1.8 billion during the fourth quarter as $7.7 million of purchases were offset by sales of $73.8 million, amortization and other portfolio reductions. As of December 31, 2014, the overall duration of the investment portfolio decreased to 3.4 years from 3.7 years as of September 30, 2014. The yield earned on the portfolio during the quarter increased 3 bps to 2.40% from 2.37% for the linked quarter, driven by the sale of lower yielding assets and a decline in prepayment speeds. The net unrealized loss included in accumulated other comprehensive loss related to the investment portfolio decreased from $6.2 million as of September 30, 2014 to $2.5 million as of December 31, 2014 due primarily to lower rates.
DEPOSITS
Total deposits were $5.7 billion as of December 31, 2014, increasing $122.7 million, or 2.2%, compared to the linked quarter. Average total deposits were $5.7 billion as of December 31, 2014, increasing $442.8 million, or 8.5%, compared to the linked quarter due primarily to the full quarterly impact of the Columbus acquisitions. The increase in period-end balances was driven by a $42.2 million, or 13.5% annualized increase in non-interest bearing deposits and an $80.6 million increase, or 7.5% annualized increase in interest bearing deposits.
Non-time deposit balances totaled $4.4 billion as of December 31, 2014, increasing $114.7 million, or 2.7%, compared to the linked quarter. The average balance of non-time deposits totaled $4.4 billion as of December 31, 2014, increasing $316.4 million, or 7.7%, compared to the linked quarter.
Time deposit balances increased $8.0 million, or 0.6%, to $1.3 billion as of December 31, 2014. Average time deposit balances totaled $1.3 billion as of December 31, 2014, increasing $126.5 million, or 11.3%, compared to the linked quarter.
The Company's total cost of deposit funding, inclusive of noninterest-bearing balances, was 35 bps for the quarter, representing an increase of 3 bps compared to the prior quarter and 8 bps compared to the fourth quarter 2013. The higher cost of deposit funding during the quarter is primarily the result of the modestly higher cost of acquired deposits in the Columbus, Ohio market, hedging strategies and the Company's efforts to attract longer-term fixed rate deposits.
CAPITAL MANAGEMENT
The following table presents First Financial's regulatory and other capital ratios as of December 31, 2014, September 30, 2014 and December 31, 2013.
| Table VI |
|||||||||||||
| As of |
|||||||||||||
| December 31, |
September 30, |
December 31, |
|||||||||||
| 2014 |
2014 |
2013 |
|||||||||||
| Leverage Ratio |
9.44 |
% |
9.70 |
% |
10.11 |
% |
|||||||
| Tier 1 Capital Ratio |
12.69 |
% |
12.74 |
% |
14.61 |
% |
|||||||
| Total Risk-Based Capital Ratio |
13.71 |
% |
13.80 |
% |
15.88 |
% |
|||||||
| Ending tangible shareholders' equity |
|||||||||||||
| to ending tangible assets |
9.02 |
% |
8.71 |
% |
9.20 |
% |
|||||||
| Ending tangible common shareholders' |
|||||||||||||
| equity to ending tangible assets |
9.02 |
% |
8.71 |
% |
9.20 |
% |
|||||||
| Tangible book value per share |
$ |
10.38 |
$ |
10.23 |
$ |
10.10 |
|||||||
Shareholders' equity increased $10.2 million during the quarter due primarily to net income for the quarter which was partially offset by declared dividends.
The Company's Tier I and total risk-based capital ratios declined during the quarter due primarily to an increase in risk-weighted assets resulting from the expiration of loss share coverage on the previously covered non-single family loan portfolio as well as an increase in originated loan balances. The Company's tangible common equity ratio increased during the quarter due to higher tangible common equity and lower tangible assets. The Company's leverage ratio decreased primarily as a result of the overall growth in the average balance sheet during the quarter.
Regulatory capital ratios as of December 31, 2014 are considered preliminary pending the filing of the Company's regulatory reports.
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 30, 2015 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10059329. The webcast will be archived on the Investor Relations section of the Company's website through January 30, 2016.
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/investor.
About First Financial Bancorp
First Financial Bancorp is a Cincinnati, Ohio based bank holding company. As of December 31, 2014, the Company had $7.2 billion in assets, $4.8 billion in loans, $5.7 billion in deposits and $784 million in shareholders' equity. The Company's subsidiary, First Financial Bank, N.A., founded in 1863, provides banking and financial services products through its four lines of business: commercial, consumer, wealth management and mortgage. The commercial, consumer 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 $2.4 billion in assets under management as of December 31, 2014. The Company's strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 106 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, 2013, 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, |
Twelve months ended, |
||||||||||||||||||||||||||
| Dec. 31, |
Sep. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Dec. 31, |
||||||||||||||||||||||
| 2014 |
2014 |
2014 |
2014 |
2013 |
2014 |
2013 |
|||||||||||||||||||||
| RESULTS OF OPERATIONS |
|||||||||||||||||||||||||||
| Net income |
$ |
18,599 |
$ |
15,344 |
$ |
15,953 |
$ |
15,104 |
$ |
3,785 |
$ |
65,000 |
$ |
48,349 |
|||||||||||||
| Net earnings per share - basic |
$ |
0.31 |
$ |
0.26 |
$ |
0.28 |
$ |
0.26 |
$ |
0.07 |
$ |
1.11 |
$ |
0.84 |
|||||||||||||
| Net earnings per share - diluted |
$ |
0.30 |
$ |
0.26 |
$ |
0.28 |
$ |
0.26 |
$ |
0.07 |
$ |
1.09 |
$ |
0.83 |
|||||||||||||
| Dividends declared per share |
$ |
0.16 |
$ |
0.15 |
$ |
0.15 |
$ |
0.15 |
$ |
0.15 |
$ |
0.61 |
$ |
0.94 |
|||||||||||||
| KEY FINANCIAL RATIOS |
|||||||||||||||||||||||||||
| Return on average assets |
1.02 |
% |
0.88 |
% |
0.99 |
% |
0.96 |
% |
0.24 |
% |
0.96 |
% |
0.77 |
% |
|||||||||||||
| Return on average shareholders' equity |
9.46 |
% |
8.16 |
% |
9.19 |
% |
8.95 |
% |
2.15 |
% |
8.94 |
% |
6.89 |
% |
|||||||||||||
| Return on average tangible shareholders' equity |
11.63 |
% |
10.15 |
% |
10.73 |
% |
10.49 |
% |
2.51 |
% |
11.18 |
% |
8.05 |
% |
|||||||||||||
| Net interest margin |
3.67 |
% |
3.66 |
% |
3.70 |
% |
3.82 |
% |
3.90 |
% |
3.71 |
% |
3.97 |
% |
|||||||||||||
| Net interest margin (fully tax equivalent) (1) |
3.72 |
% |
3.71 |
% |
3.76 |
% |
3.87 |
% |
3.94 |
% |
3.76 |
% |
4.01 |
% |
|||||||||||||
| Ending shareholders' equity as a percent of ending assets |
10.86 |
% |
10.52 |
% |
10.78 |
% |
10.64 |
% |
10.63 |
% |
10.86 |
% |
10.63 |
% |
|||||||||||||
| Ending tangible shareholders' equity as a percent of: |
|||||||||||||||||||||||||||
| Ending tangible assets |
9.02 |
% |
8.71 |
% |
9.39 |
% |
9.23 |
% |
9.20 |
% |
9.02 |
% |
9.20 |
% |
|||||||||||||
| Risk-weighted assets |
12.02 |
% |
12.07 |
% |
13.56 |
% |
13.50 |
% |
13.59 |
% |
12.02 |
% |
13.59 |
% |
|||||||||||||
| Average shareholders' equity as a percent of average assets |
10.77 |
% |
10.75 |
% |
10.79 |
% |
10.69 |
% |
11.23 |
% |
10.75 |
% |
11.17 |
% |
|||||||||||||
| Average tangible shareholders' equity as a percent of |
|||||||||||||||||||||||||||
| average tangible assets |
8.94 |
% |
8.83 |
% |
9.38 |
% |
9.27 |
% |
9.77 |
% |
8.79 |
% |
9.72 |
% |
|||||||||||||
| Book value per share |
$ |
12.76 |
$12.61 |
$12.23 |
$11.98 |
$11.86 |
$12.76 |
$11.86 |
|||||||||||||||||||
| Tangible book value per share |
$ |
10.38 |
$10.23 |
$10.49 |
$10.24 |
$10.10 |
$10.38 |
$10.10 |
|||||||||||||||||||
| Tier 1 Ratio (2) |
12.69 |
% |
12.74 |
% |
14.34 |
% |
14.42 |
% |
14.61 |
% |
12.69 |
% |
14.61 |
% |
|||||||||||||
| Total Capital Ratio (2) |
13.71 |
% |
13.80 |
% |
15.59 |
% |
15.67 |
% |
15.88 |
% |
13.71 |
% |
15.88 |
% |
|||||||||||||
| Leverage Ratio (2) |
9.44 |
% |
9.70 |
% |
9.99 |
% |
9.94 |
% |
10.11 |
% |
9.44 |
% |
10.11 |
% |
|||||||||||||
| AVERAGE BALANCE SHEET ITEMS |
|||||||||||||||||||||||||||
| Loans (3) |
$ |
4,758,374 |
$ |
4,403,591 |
$ |
4,025,074 |
$ |
3,966,838 |
$ |
3,940,141 |
$ |
4,290,953 |
$ |
3,955,536 |
|||||||||||||
| FDIC indemnification asset |
24,172 |
28,050 |
33,987 |
43,799 |
78,313 |
32,436 |
95,126 |
||||||||||||||||||||
| Investment securities |
1,811,941 |
1,865,241 |
1,811,175 |
1,807,571 |
1,654,374 |
1,824,107 |
1,696,211 |
||||||||||||||||||||
| Interest-bearing deposits with other banks |
22,617 |
29,433 |
10,697 |
2,922 |
4,906 |
16,507 |
6,464 |
||||||||||||||||||||
| Total earning assets |
$ |
6,617,104 |
$ |
6,326,315 |
$ |
5,880,933 |
$ |
5,821,130 |
$ |
5,677,734 |
$ |
6,164,003 |
$ |
5,753,337 |
|||||||||||||
| Total assets |
$ |
7,241,869 |
$ |
6,937,283 |
$ |
6,454,252 |
$ |
6,399,235 |
$ |
6,232,971 |
$ |
6,760,959 |
$ |
6,281,411 |
|||||||||||||
| Noninterest-bearing deposits |
$ |
1,290,754 |
$ |
1,179,207 |
$ |
1,110,697 |
$ |
1,096,509 |
$ |
1,129,097 |
$ |
1,169,851 |
$ |
1,078,800 |
|||||||||||||
| Interest-bearing deposits |
4,372,529 |
4,041,255 |
3,832,295 |
3,695,177 |
3,720,809 |
3,987,323 |
3,737,946 |
||||||||||||||||||||
| Total deposits |
$ |
5,663,283 |
$ |
5,220,462 |
$ |
4,942,992 |
$ |
4,791,686 |
$ |
4,849,906 |
$ |
5,157,174 |
$ |
4,816,746 |
|||||||||||||
| Borrowings |
$ |
733,726 |
$ |
896,328 |
$ |
745,990 |
$ |
842,479 |
$ |
583,522 |
$ |
804,584 |
$ |
657,265 |
|||||||||||||
| Shareholders' equity |
$ |
780,131 |
$ |
745,729 |
$ |
696,609 |
$ |
684,332 |
$ |
700,063 |
$ |
727,015 |
$ |
701,425 |
|||||||||||||
| CREDIT QUALITY RATIOS (4) |
|||||||||||||||||||||||||||
| Allowance to ending loans |
1.11 |
% |
0.95 |
% |
1.15 |
% |
1.19 |
% |
1.25 |
% |
1.11 |
% |
1.25 |
% |
|||||||||||||
| Allowance to nonaccrual loans |
109.06 |
% |
101.94 |
% |
129.64 |
% |
121.76 |
% |
116.55 |
% |
109.06 |
% |
116.55 |
% |
|||||||||||||
| Allowance to nonperforming loans |
82.08 |
% |
77.17 |
% |
93.34 |
% |
88.28 |
% |
83.17 |
% |
82.08 |
% |
83.17 |
% |
|||||||||||||
| Nonperforming loans to total loans |
1.35 |
% |
1.24 |
% |
1.23 |
% |
1.35 |
% |
1.50 |
% |
1.35 |
% |
1.50 |
% |
|||||||||||||
| Nonperforming assets to ending loans, plus OREO |
1.81 |
% |
1.49 |
% |
1.59 |
% |
1.70 |
% |
2.06 |
% |
1.81 |
% |
2.06 |
% |
|||||||||||||
| Nonperforming assets to total assets |
1.21 |
% |
0.90 |
% |
0.89 |
% |
0.95 |
% |
1.13 |
% |
1.21 |
% |
1.13 |
% |
|||||||||||||
| Net charge-offs to average loans (annualized) |
0.27 |
% |
0.07 |
% |
0.11 |
% |
0.23 |
% |
0.41 |
% |
0.63 |
% |
0.38 |
% |
|||||||||||||
| (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) December 31, 2014 regulatory capital ratios are preliminary. |
|
| (3) Includes loans held for sale. |
|
| (4) Credit quality ratios for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013 and for the twelve months ended December 31, 2013 exclude covered assets. |
| FIRST FINANCIAL BANCORP. |
|||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||||||||
| (Dollars in thousands, except per share data) |
|||||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||||
| Three months ended, |
Twelve months ended, |
||||||||||||||||||||
| Dec. 31, |
Dec. 31, |
||||||||||||||||||||
| 2014 |
2013 |
% Change |
2014 |
2013 |
% Change |
||||||||||||||||
| Interest income |
|||||||||||||||||||||
| Loans, including fees |
$ |
57,087 |
$ |
52,351 |
9.0% |
$ |
208,836 |
$ |
216,306 |
(3.5)% |
|||||||||||
| Investment securities |
|||||||||||||||||||||
| Taxable |
9,905 |
9,209 |
7.6% |
40,924 |
34,147 |
19.8% |
|||||||||||||||
| Tax-exempt |
1,060 |
719 |
47.4% |
3,560 |
2,400 |
48.3% |
|||||||||||||||
| Total investment securities interest |
10,965 |
9,928 |
10.4% |
44,484 |
36,547 |
21.7% |
|||||||||||||||
| Other earning assets |
(1,299) |
(2,432) |
(46.6)% |
(5,461) |
(7,645) |
(28.6)% |
|||||||||||||||
| Total interest income |
66,753 |
59,847 |
11.5% |
247,859 |
245,208 |
1.1% |
|||||||||||||||
| Interest expense |
|||||||||||||||||||||
| Deposits |
5,013 |
3,247 |
54.4% |
16,153 |
13,247 |
21.9% |
|||||||||||||||
| Short-term borrowings |
293 |
257 |
14.0% |
1,268 |
1,177 |
7.7% |
|||||||||||||||
| Long-term borrowings |
308 |
539 |
(42.9)% |
1,813 |
2,464 |
(26.4)% |
|||||||||||||||
| Total interest expense |
5,614 |
4,043 |
38.9% |
19,234 |
16,888 |
13.9% |
|||||||||||||||
| Net interest income |
61,139 |
55,804 |
9.6% |
228,625 |
228,320 |
0.1% |
|||||||||||||||
| Provision for loan and lease losses |
2,052 |
(4,006) |
(151.2)% |
1,528 |
8,909 |
(82.8)% |
|||||||||||||||
| Net interest income after provision for loan and lease losses |
59,087 |
59,810 |
(1.2)% |
227,097 |
219,411 |
3.5% |
|||||||||||||||
| Noninterest income |
|||||||||||||||||||||
| Service charges on deposit accounts |
5,102 |
5,226 |
(2.4)% |
20,274 |
20,595 |
(1.6)% |
|||||||||||||||
| Trust and wealth management fees |
3,376 |
3,506 |
(3.7)% |
13,634 |
14,319 |
(4.8)% |
|||||||||||||||
| Bankcard income |
2,639 |
2,699 |
(2.2)% |
10,740 |
10,914 |
(1.6)% |
|||||||||||||||
| Net gains from sales of loans |
1,571 |
604 |
160.1% |
4,364 |
3,150 |
38.5% |
|||||||||||||||
| Gain on sale of investment securities |
20 |
0 |
N/M |
70 |
1,724 |
(95.9)% |
|||||||||||||||
| FDIC loss sharing income |
(43) |
(3,385) |
98.7% |
365 |
3,720 |
(90.2)% |
|||||||||||||||
| Accelerated discount on covered/formerly covered loans |
1,759 |
1,572 |
11.9% |
4,184 |
7,153 |
(41.5)% |
|||||||||||||||
| Other |
2,518 |
2,821 |
(10.7)% |
10,334 |
12,072 |
(14.4)% |
|||||||||||||||
| Total noninterest income |
16,942 |
13,043 |
29.9% |
63,965 |
73,647 |
(13.1)% |
|||||||||||||||
| Noninterest expenses |
|||||||||||||||||||||
| Salaries and employee benefits |
28,140 |
24,023 |
17.1% |
107,702 |
101,402 |
6.2% |
|||||||||||||||
| Pension settlement charges |
0 |
462 |
(100.0)% |
0 |
6,174 |
(100.0)% |
|||||||||||||||
| Net occupancy |
4,806 |
4,557 |
5.5% |
19,187 |
21,207 |
(9.5)% |
|||||||||||||||
| Furniture and equipment |
2,229 |
2,136 |
4.4% |
8,554 |
8,970 |
(4.6)% |
|||||||||||||||
| Data processing |
2,942 |
2,617 |
12.4% |
12,963 |
10,229 |
26.7% |
|||||||||||||||
| Marketing |
1,048 |
999 |
4.9% |
3,603 |
4,270 |
(15.6)% |
|||||||||||||||
| Communication |
551 |
728 |
(24.3)% |
2,277 |
3,207 |
(29.0)% |
|||||||||||||||
| Professional services |
1,429 |
1,781 |
(19.8)% |
6,170 |
6,876 |
(10.3)% |
|||||||||||||||
| State intangible tax |
175 |
901 |
(80.6)% |
2,111 |
3,929 |
(46.3)% |
|||||||||||||||
| FDIC assessments |
1,128 |
1,121 |
0.6% |
4,462 |
4,501 |
(0.9)% |
|||||||||||||||
| Loss (gain) - other real estate owned |
289 |
1,294 |
(77.7)% |
862 |
31 |
2,680.6% |
|||||||||||||||
| Loss sharing expense |
650 |
1,495 |
(56.5)% |
4,686 |
7,083 |
(33.8)% |
|||||||||||||||
| FDIC indemnification impairment |
— |
22,417 |
(100.0)% |
0 |
22,417 |
(100.0)% |
|||||||||||||||
| Other |
6,275 |
5,754 |
9.1% |
23,457 |
25,179 |
(6.8)% |
|||||||||||||||
| Total noninterest expenses |
49,662 |
70,285 |
(29.3)% |
196,034 |
225,475 |
(13.1)% |
|||||||||||||||
| Income before income taxes |
26,367 |
2,568 |
926.8% |
95,028 |
67,583 |
40.6% |
|||||||||||||||
| Income tax expense |
7,768 |
(1,217) |
(738.3)% |
30,028 |
19,234 |
56.1% |
|||||||||||||||
| Net income |
$ |
18,599 |
$ |
3,785 |
391.4% |
$ |
65,000 |
$ |
48,349 |
34.4% |
|||||||||||
| ADDITIONAL DATA |
|||||||||||||||||||||
| Net earnings per share - basic |
$ |
0.31 |
$ |
0.07 |
$ |
1.11 |
$ |
0.84 |
|||||||||||||
| Net earnings per share - diluted |
$ |
0.30 |
$ |
0.07 |
$ |
1.09 |
$ |
0.83 |
|||||||||||||
| Dividends declared per share |
$ |
0.16 |
$ |
0.15 |
$ |
0.61 |
$ |
0.94 |
|||||||||||||
| Return on average assets |
1.02% |
0.24% |
0.96% |
0.77% |
|||||||||||||||||
| Return on average shareholders' equity |
9.46% |
2.15% |
8.94% |
6.89% |
|||||||||||||||||
| Interest income |
$ |
66,753 |
$ |
59,847 |
11.5% |
$ |
247,859 |
$ |
245,208 |
1.1% |
|||||||||||
| Tax equivalent adjustment |
946 |
635 |
49.0% |
3,224 |
2,142 |
50.5% |
|||||||||||||||
| Interest income - tax equivalent |
67,699 |
60,482 |
11.9% |
251,083 |
247,350 |
1.5% |
|||||||||||||||
| Interest expense |
5,614 |
4,043 |
38.9% |
19,234 |
16,888 |
13.9% |
|||||||||||||||
| Net interest income - tax equivalent |
$ |
62,085 |
$ |
56,439 |
10.0% |
$ |
231,849 |
$ |
230,462 |
0.6% |
|||||||||||
| Net interest margin |
3.67% |
3.90% |
3.71% |
3.97% |
|||||||||||||||||
| Net interest margin (fully tax equivalent) (1) |
3.72% |
3.94% |
3.76% |
4.01% |
|||||||||||||||||
| Full-time equivalent employees |
1,369 |
1,306 |
|||||||||||||||||||
| (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 provided useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
|||||||||||||||||||||
| N/M = Not meaningful. |
|||||||||||||||||||||
| FIRST FINANCIAL BANCORP. |
||||||||||||||||||||||
| CONSOLIDATED QUARTERLY STATEMENTS OF INCOME |
||||||||||||||||||||||
| (Dollars in thousands, except per share data) |
||||||||||||||||||||||
| (Unaudited) |
||||||||||||||||||||||
| 2014 |
||||||||||||||||||||||
| Fourth |
Third |
Second |
First |
% Change |
||||||||||||||||||
| Quarter |
Quarter |
Quarter |
Quarter |
YTD |
Linked Qtr. |
|||||||||||||||||
| Interest income |
||||||||||||||||||||||
| Loans, including fees |
$ |
57,087 |
$ |
53,725 |
$ |
48,877 |
$ |
49,147 |
$ |
208,836 |
6.3% |
|||||||||||
| Investment securities |
||||||||||||||||||||||
| Taxable |
9,905 |
10,227 |
10,355 |
10,437 |
40,924 |
(3.1)% |
||||||||||||||||
| Tax-exempt |
1,060 |
894 |
796 |
810 |
3,560 |
18.6% |
||||||||||||||||
| Total investment securities interest |
10,965 |
11,121 |
11,151 |
11,247 |
44,484 |
(1.4)% |
||||||||||||||||
| Other earning assets |
(1,299) |
(1,455) |
(1,301) |
(1,406) |
(5,461) |
(10.7)% |
||||||||||||||||
| Total interest income |
66,753 |
63,391 |
58,727 |
58,988 |
247,859 |
5.3% |
||||||||||||||||
| Interest expense |
||||||||||||||||||||||
| Deposits |
5,013 |
4,218 |
3,606 |
3,316 |
16,153 |
18.8% |
||||||||||||||||
| Short-term borrowings |
293 |
354 |
292 |
329 |
1,268 |
(17.2)% |
||||||||||||||||
| Long-term borrowings |
308 |
456 |
525 |
524 |
1,813 |
(32.5)% |
||||||||||||||||
| Total interest expense |
5,614 |
5,028 |
4,423 |
4,169 |
19,234 |
11.7% |
||||||||||||||||
| Net interest income |
61,139 |
58,363 |
54,304 |
54,819 |
228,625 |
4.8% |
||||||||||||||||
| Provision for loan and lease losses |
2,052 |
893 |
(384) |
(1,033) |
1,528 |
129.8% |
||||||||||||||||
| Net interest income after provision for loan and lease losses |
59,087 |
57,470 |
54,688 |
55,852 |
227,097 |
2.8% |
||||||||||||||||
| Noninterest income |
||||||||||||||||||||||
| Service charges on deposit accounts |
5,102 |
5,263 |
5,137 |
4,772 |
20,274 |
(3.1)% |
||||||||||||||||
| Trust and wealth management fees |
3,376 |
3,207 |
3,305 |
3,746 |
13,634 |
5.3% |
||||||||||||||||
| Bankcard income |
2,639 |
2,859 |
2,809 |
2,433 |
10,740 |
(7.7)% |
||||||||||||||||
| Net gains from sales of loans |
1,571 |
1,660 |
737 |
396 |
4,364 |
(5.4)% |
||||||||||||||||
| Gain on sale of investment securities |
20 |
0 |
0 |
50 |
70 |
N/M |
||||||||||||||||
| FDIC loss sharing income |
(43) |
(192) |
1,108 |
(508) |
365 |
(77.6)% |
||||||||||||||||
| Accelerated discount on covered/formerly covered loans |
1,759 |
789 |
621 |
1,015 |
4,184 |
122.9% |
||||||||||||||||
| Other |
2,518 |
2,925 |
2,620 |
2,271 |
10,334 |
(13.9)% |
||||||||||||||||
| Total noninterest income |
16,942 |
16,511 |
16,337 |
14,175 |
63,965 |
2.6% |
||||||||||||||||
| Noninterest expenses |
||||||||||||||||||||||
| Salaries and employee benefits |
28,140 |
28,686 |
25,615 |
25,261 |
107,702 |
(1.9)% |
||||||||||||||||
| Net occupancy |
4,806 |
4,577 |
4,505 |
5,299 |
19,187 |
5.0% |
||||||||||||||||
| Furniture and equipment |
2,229 |
2,265 |
1,983 |
2,077 |
8,554 |
(1.6)% |
||||||||||||||||
| Data processing |
2,942 |
4,393 |
2,770 |
2,858 |
12,963 |
(33.0)% |
||||||||||||||||
| Marketing |
1,048 |
939 |
830 |
786 |
3,603 |
11.6% |
||||||||||||||||
| Communication |
551 |
541 |
562 |
623 |
2,277 |
1.8% |
||||||||||||||||
| Professional services |
1,429 |
1,568 |
1,449 |
1,724 |
6,170 |
(8.9)% |
||||||||||||||||
| State intangible tax |
175 |
648 |
644 |
644 |
2,111 |
(73.0)% |
||||||||||||||||
| FDIC assessments |
1,128 |
1,126 |
1,074 |
1,134 |
4,462 |
0.2% |
||||||||||||||||
| Loss (gain) - other real estate owned |
289 |
(589) |
711 |
451 |
862 |
(149.1)% |
||||||||||||||||
| Loss sharing expense |
650 |
1,002 |
1,465 |
1,569 |
4,686 |
(35.1)% |
||||||||||||||||
| Other |
6,275 |
6,263 |
5,503 |
5,416 |
23,457 |
0.2% |
||||||||||||||||
| Total noninterest expenses |
49,662 |
51,419 |
47,111 |
47,842 |
196,034 |
(3.4)% |
||||||||||||||||
| Income before income taxes |
26,367 |
22,562 |
23,914 |
22,185 |
95,028 |
16.9% |
||||||||||||||||
| Income tax expense |
7,768 |
7,218 |
7,961 |
7,081 |
30,028 |
7.6% |
||||||||||||||||
| Net income |
$ |
18,599 |
$ |
15,344 |
$ |
15,953 |
$ |
15,104 |
$ |
65,000 |
21.2% |
|||||||||||
| ADDITIONAL DATA |
||||||||||||||||||||||
| Net earnings per share - basic |
$ |
0.31 |
$ |
0.26 |
$ |
0.28 |
$ |
0.26 |
$ |
1.11 |
||||||||||||
| Net earnings per share - diluted |
$ |
0.30 |
$ |
0.26 |
$ |
0.28 |
$ |
0.26 |
$ |
1.09 |
||||||||||||
| Dividends declared per share |
$ |
0.16 |
$ |
0.15 |
$ |
0.15 |
$ |
0.15 |
$ |
0.61 |
||||||||||||
| Return on average assets |
1.02% |
0.88% |
0.99% |
0.96% |
0.96% |
|||||||||||||||||
| Return on average shareholders' equity |
9.46% |
8.16% |
9.19% |
8.95% |
8.94% |
|||||||||||||||||
| Interest income |
$ |
66,753 |
$ |
63,391 |
$ |
58,727 |
$ |
58,988 |
$ |
247,859 |
5.3% |
|||||||||||
| Tax equivalent adjustment |
946 |
818 |
758 |
702 |
3,224 |
15.6% |
||||||||||||||||
| Interest income - tax equivalent |
67,699 |
64,209 |
59,485 |
59,690 |
251,083 |
5.4% |
||||||||||||||||
| Interest expense |
5,614 |
5,028 |
4,423 |
4,169 |
19,234 |
11.7% |
||||||||||||||||
| Net interest income - tax equivalent |
$ |
62,085 |
$ |
59,181 |
$ |
55,062 |
$ |
55,521 |
$ |
231,849 |
4.9% |
|||||||||||
| Net interest margin |
3.67% |
3.66% |
3.70% |
3.82% |
3.71% |
|||||||||||||||||
| Net interest margin (fully tax equivalent) (1) |
3.72% |
3.71% |
3.76% |
3.87% |
3.76% |
|||||||||||||||||
| Full-time equivalent employees |
1,369 |
1,395 |
1,296 |
1,286 |
||||||||||||||||||
| (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 provided useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
||||||||||||||||||||||
| N/M = Not meaningful. |
||||||||||||||||||||||
| FIRST FINANCIAL BANCORP. |
||||||||||||||||||||
| CONSOLIDATED QUARTERLY STATEMENTS OF INCOME |
||||||||||||||||||||
| (Dollars in thousands, except per share data) |
||||||||||||||||||||
| (Unaudited) |
||||||||||||||||||||
| 2013 |
||||||||||||||||||||
| Fourth |
Third |
Second |
First |
Full |
||||||||||||||||
| Quarter |
Quarter |
Quarter |
Quarter |
Year |
||||||||||||||||
| Interest income |
||||||||||||||||||||
| Loans, including fees |
$ |
52,351 |
$ |
52,908 |
$ |
55,022 |
$ |
56,025 |
$ |
216,306 |
||||||||||
| Investment securities |
||||||||||||||||||||
| Taxable |
9,209 |
8,267 |
8,295 |
8,376 |
34,147 |
|||||||||||||||
| Tax-exempt |
719 |
541 |
560 |
580 |
2,400 |
|||||||||||||||
| Total investment securities interest |
9,928 |
8,808 |
8,855 |
8,956 |
36,547 |
|||||||||||||||
| Other earning assets |
(2,432) |
(2,185) |
(1,556) |
(1,472) |
(7,645) |
|||||||||||||||
| Total interest income |
59,847 |
59,531 |
62,321 |
63,509 |
245,208 |
|||||||||||||||
| Interest expense |
||||||||||||||||||||
| Deposits |
3,247 |
2,856 |
3,284 |
3,860 |
13,247 |
|||||||||||||||
| Short-term borrowings |
257 |
286 |
305 |
329 |
1,177 |
|||||||||||||||
| Long-term borrowings |
539 |
617 |
654 |
654 |
2,464 |
|||||||||||||||
| Total interest expense |
4,043 |
3,759 |
4,243 |
4,843 |
16,888 |
|||||||||||||||
| Net interest income |
55,804 |
55,772 |
58,078 |
58,666 |
228,320 |
|||||||||||||||
| Provision for loan and lease losses |
(4,006) |
6,706 |
(5,874) |
12,083 |
8,909 |
|||||||||||||||
| Net interest income after provision for loan and lease losses |
59,810 |
49,066 |
63,952 |
46,583 |
219,411 |
|||||||||||||||
| Noninterest income |
||||||||||||||||||||
| Service charges on deposit accounts |
5,226 |
5,447 |
5,205 |
4,717 |
20,595 |
|||||||||||||||
| Trust and wealth management fees |
3,506 |
3,366 |
3,497 |
3,950 |
14,319 |
|||||||||||||||
| Bankcard income |
2,699 |
2,637 |
3,145 |
2,433 |
10,914 |
|||||||||||||||
| Net gains from sales of loans |
604 |
751 |
1,089 |
706 |
3,150 |
|||||||||||||||
| Gain on sale of investment securities |
0 |
0 |
188 |
1,536 |
1,724 |
|||||||||||||||
| FDIC loss sharing income |
(3,385) |
5,555 |
(7,384) |
8,934 |
3,720 |
|||||||||||||||
| Accelerated discount on covered/formerly covered loans |
1,572 |
1,711 |
1,935 |
1,935 |
7,153 |
|||||||||||||||
| Other |
2,821 |
2,824 |
3,940 |
2,487 |
12,072 |
|||||||||||||||
| Total noninterest income |
13,043 |
22,291 |
11,615 |
26,698 |
73,647 |
|||||||||||||||
| Noninterest expenses |
||||||||||||||||||||
| Salaries and employee benefits |
24,023 |
23,834 |
26,216 |
27,329 |
101,402 |
|||||||||||||||
| Pension settlement charges |
462 |
1,396 |
4,316 |
0 |
6,174 |
|||||||||||||||
| Net occupancy |
4,557 |
5,101 |
5,384 |
6,165 |
21,207 |
|||||||||||||||
| Furniture and equipment |
2,136 |
2,213 |
2,250 |
2,371 |
8,970 |
|||||||||||||||
| Data processing |
2,617 |
2,584 |
2,559 |
2,469 |
10,229 |
|||||||||||||||
| Marketing |
999 |
1,192 |
1,182 |
897 |
4,270 |
|||||||||||||||
| Communication |
728 |
865 |
781 |
833 |
3,207 |
|||||||||||||||
| Professional services |
1,781 |
1,528 |
1,764 |
1,803 |
6,876 |
|||||||||||||||
| State intangible tax |
901 |
1,010 |
1,004 |
1,014 |
3,929 |
|||||||||||||||
| FDIC assessments |
1,121 |
1,107 |
1,148 |
1,125 |
4,501 |
|||||||||||||||
| Loss (gain) - other real estate owned |
1,294 |
388 |
(1,996) |
345 |
31 |
|||||||||||||||
| Loss sharing expense |
1,495 |
1,724 |
1,578 |
2,286 |
7,083 |
|||||||||||||||
| FDIC indemnification impairment |
22,417 |
0 |
0 |
0 |
22,417 |
|||||||||||||||
| Other |
5,754 |
5,859 |
7,097 |
6,469 |
25,179 |
|||||||||||||||
| Total noninterest expenses |
70,285 |
48,801 |
53,283 |
53,106 |
225,475 |
|||||||||||||||
| Income before income taxes |
2,568 |
22,556 |
22,284 |
20,175 |
67,583 |
|||||||||||||||
| Income tax expense |
(1,217) |
7,645 |
6,455 |
6,351 |
19,234 |
|||||||||||||||
| Net income |
$ |
3,785 |
$ |
14,911 |
$ |
15,829 |
$ |
13,824 |
$ |
48,349 |
||||||||||
| ADDITIONAL DATA |
||||||||||||||||||||
| Net earnings per share - basic |
$ |
0.07 |
$ |
0.26 |
$ |
0.28 |
$ |
0.24 |
$ |
0.84 |
||||||||||
| Net earnings per share - diluted |
$ |
0.07 |
$ |
0.26 |
$ |
0.27 |
$ |
0.24 |
$ |
0.83 |
||||||||||
| Dividends declared per share |
$ |
0.15 |
$ |
0.27 |
$ |
0.24 |
$ |
0.28 |
$ |
0.94 |
||||||||||
| Return on average assets |
0.24 |
% |
0.96 |
% |
1.01 |
% |
0.88 |
% |
0.77 |
% |
||||||||||
| Return on average shareholders' equity |
2.15 |
% |
8.53 |
% |
9.02 |
% |
7.91 |
% |
6.89 |
% |
||||||||||
| Interest income |
$ |
59,847 |
$ |
59,531 |
$ |
62,321 |
$ |
63,509 |
$ |
245,208 |
||||||||||
| Tax equivalent adjustment |
635 |
516 |
514 |
477 |
2,142 |
|||||||||||||||
| Interest income - tax equivalent |
60,482 |
60,047 |
62,835 |
63,986 |
247,350 |
|||||||||||||||
| Interest expense |
4,043 |
3,759 |
4,243 |
4,843 |
16,888 |
|||||||||||||||
| Net interest income - tax equivalent |
$ |
56,439 |
$ |
56,288 |
$ |
58,592 |
$ |
59,143 |
$ |
230,462 |
||||||||||
| Net interest margin |
3.90 |
% |
3.91 |
% |
4.02 |
% |
4.04 |
% |
3.97 |
% |
||||||||||
| Net interest margin (fully tax equivalent) (1) |
3.94 |
% |
3.95 |
% |
4.06 |
% |
4.07 |
% |
4.01 |
% |
||||||||||
| Full-time equivalent employees |
1,306 |
1,292 |
1,338 |
1,385 |
||||||||||||||||
| (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 provided 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) |
|||||||||||||||||||||||||
| Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
% Change |
% Change |
|||||||||||||||||||
| 2014 |
2014 |
2014 |
2014 |
2013 |
Linked Qtr. |
Comparable Qtr. |
|||||||||||||||||||
| ASSETS |
|||||||||||||||||||||||||
| Cash and due from banks |
$ |
110,122 |
$ |
121,360 |
$ |
123,160 |
$ |
161,515 |
$ |
117,620 |
(9.3)% |
(6.4)% |
|||||||||||||
| Interest-bearing deposits with other banks |
22,630 |
22,365 |
39,237 |
9,681 |
25,830 |
1.2% |
(12.4)% |
||||||||||||||||||
| Investment securities available-for-sale |
840,468 |
929,594 |
897,715 |
862,526 |
913,601 |
(9.6)% |
(8.0)% |
||||||||||||||||||
| Investment securities held-to-maturity |
867,996 |
900,521 |
899,502 |
890,806 |
837,272 |
(3.6)% |
3.7% |
||||||||||||||||||
| Other investments |
52,626 |
49,986 |
47,640 |
47,659 |
47,427 |
5.3% |
11.0% |
||||||||||||||||||
| Loans held for sale |
11,005 |
16,816 |
13,108 |
6,171 |
8,114 |
(34.6)% |
35.6% |
||||||||||||||||||
| Loans (1) |
|||||||||||||||||||||||||
| Commercial |
1,315,114 |
1,328,526 |
1,171,181 |
1,152,442 |
1,077,984 |
(1.0)% |
22.0% |
||||||||||||||||||
| Real estate - construction |
197,571 |
195,524 |
115,703 |
96,476 |
89,297 |
1.0% |
121.3% |
||||||||||||||||||
| Real estate - commercial |
2,140,667 |
2,135,968 |
1,700,069 |
1,748,688 |
1,765,620 |
0.2% |
21.2% |
||||||||||||||||||
| Real estate - residential |
501,894 |
498,873 |
447,561 |
438,439 |
433,664 |
0.6% |
15.7% |
||||||||||||||||||
| Installment |
47,320 |
51,131 |
47,753 |
50,017 |
52,774 |
(7.5)% |
(10.3)% |
||||||||||||||||||
| Home equity |
458,627 |
460,957 |
426,846 |
420,746 |
426,078 |
(0.5)% |
7.6% |
||||||||||||||||||
| Credit card |
38,475 |
38,042 |
37,937 |
37,008 |
37,962 |
1.1% |
1.4% |
||||||||||||||||||
| Lease financing |
77,567 |
73,216 |
81,212 |
79,792 |
80,135 |
5.9% |
(3.2)% |
||||||||||||||||||
| Total loans |
4,777,235 |
4,782,237 |
4,028,262 |
4,023,608 |
3,963,514 |
(0.1)% |
20.5% |
||||||||||||||||||
| Less |
|||||||||||||||||||||||||
| Allowance for loan and lease losses(2) |
52,858 |
53,989 |
54,452 |
53,596 |
62,730 |
(2.1)% |
(15.7)% |
||||||||||||||||||
| Net loans |
4,724,377 |
4,728,248 |
3,973,810 |
3,970,012 |
3,900,784 |
(0.1)% |
21.1% |
||||||||||||||||||
| Premises and equipment |
141,381 |
141,851 |
133,418 |
135,105 |
137,110 |
(0.3)% |
3.1% |
||||||||||||||||||
| Goodwill |
137,739 |
137,458 |
95,050 |
95,050 |
95,050 |
0.2% |
44.9% |
||||||||||||||||||
| Other intangibles |
8,114 |
8,542 |
5,344 |
5,566 |
5,924 |
(5.0)% |
37.0% |
||||||||||||||||||
| FDIC indemnification asset |
22,666 |
24,160 |
30,420 |
39,003 |
45,091 |
(6.2)% |
(49.7)% |
||||||||||||||||||
| Accrued interest and other assets |
278,697 |
272,568 |
287,340 |
275,995 |
283,390 |
2.2% |
(1.7)% |
||||||||||||||||||
| Total Assets |
$ |
7,217,821 |
$ |
7,353,469 |
$ |
6,545,744 |
$ |
6,499,089 |
$ |
6,417,213 |
(1.8)% |
12.5% |
|||||||||||||
| LIABILITIES |
|||||||||||||||||||||||||
| Deposits |
|||||||||||||||||||||||||
| Interest-bearing demand |
$ |
1,225,378 |
$ |
1,214,726 |
$ |
1,105,031 |
$ |
1,102,029 |
$ |
1,125,723 |
0.9% |
8.9% |
|||||||||||||
| Savings |
1,889,473 |
1,827,590 |
1,656,798 |
1,639,495 |
1,612,005 |
3.4% |
17.2% |
||||||||||||||||||
| Time |
1,255,364 |
1,247,334 |
973,100 |
956,049 |
952,327 |
0.6% |
31.8% |
||||||||||||||||||
| Total interest-bearing deposits |
4,370,215 |
4,289,650 |
3,734,929 |
3,697,573 |
3,690,055 |
1.9% |
18.4% |
||||||||||||||||||
| Noninterest-bearing |
1,285,527 |
1,243,367 |
1,140,198 |
1,122,816 |
1,147,452 |
3.4% |
12.0% |
||||||||||||||||||
| Total deposits |
5,655,742 |
5,533,017 |
4,875,127 |
4,820,389 |
4,837,507 |
2.2% |
16.9% |
||||||||||||||||||
| Federal funds purchased and securities sold |
|||||||||||||||||||||||||
| under agreements to repurchase |
103,192 |
113,303 |
128,013 |
112,293 |
94,749 |
(8.9)% |
8.9% |
||||||||||||||||||
| FHLB short-term borrowings |
558,200 |
806,000 |
686,300 |
722,800 |
654,000 |
(30.7)% |
(14.6)% |
||||||||||||||||||
| Total short-term borrowings |
661,392 |
919,303 |
814,313 |
835,093 |
748,749 |
(28.1)% |
(11.7)% |
||||||||||||||||||
| Long-term debt |
48,241 |
52,656 |
59,693 |
60,163 |
60,780 |
(8.4)% |
(20.6)% |
||||||||||||||||||
| Total borrowed funds |
709,633 |
971,959 |
874,006 |
895,256 |
809,529 |
(27.0)% |
(12.3)% |
||||||||||||||||||
| Accrued interest and other liabilities |
68,369 |
74,581 |
90,780 |
92,097 |
88,016 |
(8.3)% |
(22.3)% |
||||||||||||||||||
| Total Liabilities |
6,433,744 |
6,579,557 |
5,839,913 |
5,807,742 |
5,735,052 |
(2.2)% |
12.2% |
||||||||||||||||||
| SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||
| Common stock |
574,643 |
574,209 |
574,206 |
573,243 |
577,076 |
0.1% |
(0.4)% |
||||||||||||||||||
| Retained earnings |
352,893 |
344,118 |
337,971 |
330,672 |
324,192 |
2.5% |
8.9% |
||||||||||||||||||
| Accumulated other comprehensive loss |
(21,409) |
(20,888) |
(21,569) |
(27,648) |
(31,281) |
2.5% |
(31.6)% |
||||||||||||||||||
| Treasury stock, at cost |
(122,050) |
(123,527) |
(184,777) |
(184,920) |
(187,826) |
(1.2)% |
(35.0)% |
||||||||||||||||||
| Total Shareholders' Equity |
784,077 |
773,912 |
705,831 |
691,347 |
682,161 |
1.3% |
14.9% |
||||||||||||||||||
| Total Liabilities and Shareholders' Equity |
$ |
7,217,821 |
$ |
7,353,469 |
$ |
6,545,744 |
$ |
6,499,089 |
$ |
6,417,213 |
(1.8)% |
12.5% |
|||||||||||||
| (1) Covered loans of $135.7 million, $332.3 million, $365.6 million, $409.4 million, and $457.9 million as of December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013, respectively, have been reclassified into Loans due to the expiration of loss sharing coverage on non-single family assets effective October 1, 2014. |
|||||||||||||||||||||||||
| (2) Allowance for loan and lease losses covered and formerly covered under loss sharing agreements with the FDIC of $10.0 million, $11.5 million, $12.4 million, $10.6 million, and $18.9 million as of December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013, respectively, have been reclassified into allowance for loan and lease losses due to the expiration of loss sharing coverage on non-single family assets effective October 1, 2014. |
|||||||||||||||||||||||||
| FIRST FINANCIAL BANCORP. |
|||||||||||||||||||||||||||
| AVERAGE CONSOLIDATED STATEMENTS OF CONDITION |
|||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||||||||||
| Quarterly Averages |
Year-to-Date Averages |
||||||||||||||||||||||||||
| Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
Dec. 31, |
||||||||||||||||||||||
| 2014 |
2014 |
2014 |
2014 |
2013 |
2014 |
2013 |
|||||||||||||||||||||
| ASSETS |
|||||||||||||||||||||||||||
| Cash and due from banks |
$ |
124,216 |
$ |
125,528 |
$ |
118,947 |
$ |
123,583 |
$ |
110,246 |
$ |
123,077 |
$ |
115,486 |
|||||||||||||
| Federal funds sold |
0 |
8,795 |
0 |
0 |
0 |
2,217 |
0 |
||||||||||||||||||||
| Interest-bearing deposits with other banks |
22,617 |
20,638 |
10,697 |
2,922 |
4,906 |
14,290 |
6,464 |
||||||||||||||||||||
| Investment securities |
1,811,941 |
1,865,241 |
1,811,175 |
1,807,571 |
1,654,374 |
1,824,107 |
1,696,211 |
||||||||||||||||||||
| Loans held for sale |
11,774 |
15,357 |
8,464 |
4,924 |
7,990 |
10,163 |
15,497 |
||||||||||||||||||||
| Loans (1) |
|||||||||||||||||||||||||||
| Commercial |
1,282,752 |
1,221,637 |
1,147,876 |
1,100,904 |
1,033,780 |
1,188,882 |
994,361 |
||||||||||||||||||||
| Real estate - construction |
192,626 |
154,515 |
103,033 |
91,570 |
87,742 |
135,765 |
96,104 |
||||||||||||||||||||
| Real estate - commercial |
2,158,336 |
1,927,003 |
1,733,739 |
1,743,976 |
1,783,654 |
1,891,998 |
1,835,806 |
||||||||||||||||||||
| Real estate - residential |
493,895 |
475,510 |
441,383 |
434,595 |
434,476 |
461,547 |
429,601 |
||||||||||||||||||||
| Installment |
49,356 |
49,958 |
48,538 |
51,048 |
53,601 |
49,721 |
58,159 |
||||||||||||||||||||
| Home equity |
456,494 |
444,745 |
423,937 |
422,656 |
425,236 |
437,072 |
423,153 |
||||||||||||||||||||
| Credit card |
38,966 |
38,381 |
37,649 |
37,068 |
37,327 |
38,022 |
36,538 |
||||||||||||||||||||
| Lease financing |
74,175 |
76,485 |
80,455 |
80,097 |
76,335 |
77,783 |
66,317 |
||||||||||||||||||||
| Total loans |
4,746,600 |
4,388,234 |
4,016,610 |
3,961,914 |
3,932,151 |
4,280,790 |
3,940,039 |
||||||||||||||||||||
| Less |
|||||||||||||||||||||||||||
| Allowance for loan and lease losses(2) |
54,656 |
55,697 |
55,149 |
61,902 |
68,264 |
56,828 |
84,033 |
||||||||||||||||||||
| Net loans |
4,691,944 |
4,332,537 |
3,961,461 |
3,900,012 |
3,863,887 |
4,223,962 |
3,856,006 |
||||||||||||||||||||
| Premises and equipment |
141,871 |
136,956 |
134,522 |
136,624 |
138,644 |
137,506 |
143,036 |
||||||||||||||||||||
| Goodwill |
137,551 |
118,756 |
95,050 |
95,050 |
95,050 |
111,738 |
95,050 |
||||||||||||||||||||
| Other intangibles |
8,321 |
7,138 |
5,445 |
5,723 |
6,075 |
6,665 |
6,666 |
||||||||||||||||||||
| FDIC indemnification asset |
24,172 |
28,050 |
33,987 |
43,799 |
78,313 |
32,436 |
95,126 |
||||||||||||||||||||
| Accrued interest and other assets |
267,462 |
278,287 |
274,504 |
279,027 |
273,486 |
274,798 |
251,869 |
||||||||||||||||||||
| Total Assets |
$ |
7,241,869 |
$ |
6,937,283 |
$ |
6,454,252 |
$ |
6,399,235 |
$ |
6,232,971 |
$ |
6,760,959 |
$ |
6,281,411 |
|||||||||||||
| LIABILITIES |
|||||||||||||||||||||||||||
| Deposits |
|||||||||||||||||||||||||||
| Interest-bearing demand |
$ |
1,217,852 |
$ |
1,135,126 |
$ |
1,169,350 |
$ |
1,107,844 |
$ |
1,150,275 |
$ |
1,157,783 |
$ |
1,125,836 |
|||||||||||||
| Savings |
1,904,568 |
1,782,472 |
1,702,521 |
1,633,910 |
1,637,657 |
1,756,682 |
1,626,025 |
||||||||||||||||||||
| Time |
1,250,109 |
1,123,657 |
960,424 |
953,423 |
932,877 |
1,072,858 |
986,085 |
||||||||||||||||||||
| Total interest-bearing deposits |
4,372,529 |
4,041,255 |
3,832,295 |
3,695,177 |
3,720,809 |
3,987,323 |
3,737,946 |
||||||||||||||||||||
| Noninterest-bearing |
1,290,754 |
1,179,207 |
1,110,697 |
1,096,509 |
1,129,097 |
1,169,851 |
1,078,800 |
||||||||||||||||||||
| Total deposits |
5,663,283 |
5,220,462 |
4,942,992 |
4,791,686 |
4,849,906 |
5,157,174 |
4,816,746 |
||||||||||||||||||||
| Federal funds purchased and securities sold |
|||||||||||||||||||||||||||
| under agreements to repurchase |
119,712 |
125,094 |
123,682 |
110,533 |
107,738 |
119,795 |
115,486 |
||||||||||||||||||||
| FHLB short-term borrowings |
564,062 |
710,879 |
562,466 |
671,579 |
414,892 |
627,181 |
472,062 |
||||||||||||||||||||
| Total short-term borrowings |
683,774 |
835,973 |
686,148 |
782,112 |
522,630 |
746,976 |
587,548 |
||||||||||||||||||||
| Long-term debt |
49,952 |
60,355 |
59,842 |
60,367 |
60,892 |
57,608 |
69,717 |
||||||||||||||||||||
| Total borrowed funds |
733,726 |
896,328 |
745,990 |
842,479 |
583,522 |
804,584 |
657,265 |
||||||||||||||||||||
| Accrued interest and other liabilities |
64,729 |
74,764 |
68,661 |
80,738 |
99,480 |
72,186 |
105,975 |
||||||||||||||||||||
| Total Liabilities |
6,461,738 |
6,191,554 |
5,757,643 |
5,714,903 |
5,532,908 |
6,033,944 |
5,579,986 |
||||||||||||||||||||
| SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||
| Common stock |
574,588 |
574,187 |
573,716 |
575,828 |
577,851 |
574,576 |
577,409 |
||||||||||||||||||||
| Retained earnings |
347,435 |
340,680 |
332,944 |
324,875 |
337,034 |
336,557 |
331,817 |
||||||||||||||||||||
| Accumulated other comprehensive loss |
(18,841) |
(20,966) |
(25,189) |
(29,251) |
(28,380) |
(23,527) |
(23,884) |
||||||||||||||||||||
| Treasury stock, at cost |
(123,051) |
(148,172) |
(184,862) |
(187,120) |
(186,442) |
(160,591) |
(183,917) |
||||||||||||||||||||
| Total Shareholders' Equity |
780,131 |
745,729 |
696,609 |
684,332 |
700,063 |
727,015 |
701,425 |
||||||||||||||||||||
| Total Liabilities and Shareholders' Equity |
$ |
7,241,869 |
$ |
6,937,283 |
$ |
6,454,252 |
$ |
6,399,235 |
$ |
6,232,971 |
$ |
6,760,959 |
$ |
6,281,411 |
|||||||||||||
|
(1) Covered loans of $319.6 million, $350.9 million, $387.6 million, $434.5 million and $490.1 million for the three months ending December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013, respectively and $372.8 million and $609.8 million for the twelve months ended December 31, 2014 and December 31, 2013, respectively, have been reclassified into Loans due to the expiration of loss sharing coverage on non-single family assets effective October 1, 2014. |
|||||||||||||||||||||||||||
|
(2) Allowance for loan and lease losses covered and formerly covered under loss sharing agreements with the FDIC of $11.9 million, $13.1 million, $11.6 million, $17.6 million, and $21.7 million for the three months ending December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013, respectively and $13.5 and $35.1 for the twelve months ending December 31, 2014 and December 31, 2013, respectively, have been reclassified into allowance for loan and lease losses due to the expiration of loss sharing coverage on non-single family assets effective October 1, 2014. |
|||||||||||||||||||||||||||
| FIRST FINANCIAL BANCORP. |
|||||||||||||||||||||||||||||||||||
| NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) |
|||||||||||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||||||||||||||||||
| Quarterly Averages |
Year-to-Date Averages |
||||||||||||||||||||||||||||||||||
| Dec. 31, 2014 |
Sep. 30, 2014 |
Dec. 31, 2013 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||||||||||||||||||||||||
| Balance |
Yield |
Balance |
Yield |
Balance |
Yield |
Balance |
Yield |
Balance |
Yield |
||||||||||||||||||||||||||
| Earning assets |
|||||||||||||||||||||||||||||||||||
| Investments: |
|||||||||||||||||||||||||||||||||||
| Investment securities |
$ |
1,811,941 |
2.40 |
% |
$ |
1,865,241 |
2.37 |
% |
$ |
1,654,374 |
2.38 |
% |
$ |
1,824,107 |
2.44 |
% |
$ |
1,696,211 |
2.15 |
% |
|||||||||||||||
| Interest-bearing deposits with other banks |
22,617 |
0.30 |
% |
29,433 |
0.42 |
% |
4,906 |
0.57 |
% |
16,507 |
0.42 |
% |
6,464 |
0.42 |
% |
||||||||||||||||||||
| Gross loans (2) |
4,782,546 |
4.63 |
% |
4,431,641 |
4.68 |
% |
4,018,454 |
4.93 |
% |
4,323,389 |
4.70 |
% |
4,050,662 |
5.15 |
% |
||||||||||||||||||||
| Total earning assets |
6,617,104 |
4.00 |
% |
6,326,315 |
3.98 |
% |
5,677,734 |
4.18 |
% |
6,164,003 |
4.02 |
% |
5,753,337 |
4.26 |
% |
||||||||||||||||||||
| Nonearning assets |
|||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses |
(54,656) |
(55,697) |
(68,264) |
(56,828) |
(84,033) |
||||||||||||||||||||||||||||||
| Cash and due from banks |
124,216 |
125,528 |
110,246 |
123,077 |
115,486 |
||||||||||||||||||||||||||||||
| Accrued interest and other assets |
555,205 |
541,137 |
513,255 |
530,707 |
496,621 |
||||||||||||||||||||||||||||||
| Total assets |
$ |
7,241,869 |
$ |
6,937,283 |
$ |
6,232,971 |
$ |
6,760,959 |
$ |
6,281,411 |
|||||||||||||||||||||||||
| Interest-bearing liabilities |
|||||||||||||||||||||||||||||||||||
| Deposits: |
|||||||||||||||||||||||||||||||||||
| Interest-bearing demand |
$ |
1,217,852 |
0.10 |
% |
$ |
1,135,126 |
0.11 |
% |
$ |
1,150,275 |
0.19 |
% |
$ |
1,157,783 |
0.11 |
% |
$ |
1,125,836 |
0.13 |
% |
|||||||||||||||
| Savings |
1,904,568 |
0.31 |
% |
1,782,472 |
0.26 |
% |
1,637,657 |
0.15 |
% |
1,756,682 |
0.25 |
% |
1,626,025 |
0.11 |
% |
||||||||||||||||||||
| Time |
1,250,109 |
1.02 |
% |
1,123,657 |
0.97 |
% |
932,877 |
0.90 |
% |
1,072,858 |
0.98 |
% |
986,085 |
1.01 |
% |
||||||||||||||||||||
| Total interest-bearing deposits |
4,372,529 |
0.45 |
% |
4,041,255 |
0.41 |
% |
3,720,809 |
0.35 |
% |
3,987,323 |
0.41 |
% |
3,737,946 |
0.35 |
% |
||||||||||||||||||||
| Borrowed funds |
|||||||||||||||||||||||||||||||||||
| Short-term borrowings |
683,774 |
0.17 |
% |
835,973 |
0.17 |
% |
522,630 |
0.20 |
% |
746,976 |
0.17 |
% |
587,548 |
0.20 |
% |
||||||||||||||||||||
| Long-term debt |
49,952 |
2.45 |
% |
60,355 |
3.00 |
% |
60,892 |
3.51 |
% |
57,608 |
3.15 |
% |
69,717 |
3.53 |
% |
||||||||||||||||||||
| Total borrowed funds |
733,726 |
0.32 |
% |
896,328 |
0.36 |
% |
583,522 |
0.54 |
% |
804,584 |
0.38 |
% |
657,265 |
0.55 |
% |
||||||||||||||||||||
| Total interest-bearing liabilities |
5,106,255 |
0.44 |
% |
4,937,583 |
0.40 |
% |
4,304,331 |
0.37 |
% |
4,791,907 |
0.40 |
% |
4,395,211 |
0.38 |
% |
||||||||||||||||||||
| Noninterest-bearing liabilities |
|||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits |
1,290,754 |
1,179,207 |
1,129,097 |
1,169,851 |
1,078,800 |
||||||||||||||||||||||||||||||
| Other liabilities |
64,729 |
74,764 |
99,480 |
72,186 |
105,975 |
||||||||||||||||||||||||||||||
| Shareholders' equity |
780,131 |
745,729 |
700,063 |
727,015 |
701,425 |
||||||||||||||||||||||||||||||
| Total liabilities & shareholders' equity |
$ |
7,241,869 |
$ |
6,937,283 |
$ |
6,232,971 |
$ |
6,760,959 |
$ |
6,281,411 |
|||||||||||||||||||||||||
| Net interest income (1) |
$ |
61,139 |
$ |
58,363 |
$ |
55,804 |
$ |
228,625 |
$ |
228,320 |
|||||||||||||||||||||||||
| Net interest spread (1) |
3.56 |
% |
3.58 |
% |
3.81 |
% |
3.62 |
% |
3.88 |
% |
|||||||||||||||||||||||||
| Net interest margin (1) |
3.67 |
% |
3.66 |
% |
3.90 |
% |
3.71 |
% |
3.97 |
% |
|||||||||||||||||||||||||
| (1) Not tax equivalent. |
|||||||||||||||||||||||||||||||||||
| (2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans. |
|||||||||||||||||||||||||||||||||||
| FIRST FINANCIAL BANCORP. |
||||||||||||||||||||||||||||||||||||
| NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) |
||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) |
||||||||||||||||||||||||||||||||||||
| (Unaudited) |
||||||||||||||||||||||||||||||||||||
| Linked Qtr. Income Variance |
Comparable Qtr. Income Variance |
Year-to-Date Income Variance |
||||||||||||||||||||||||||||||||||
| Rate |
Volume |
Total |
Rate |
Volume |
Total |
Rate |
Volume |
Total |
||||||||||||||||||||||||||||
| Earning assets |
||||||||||||||||||||||||||||||||||||
| Investment securities |
$ |
167 |
$ |
(323) |
$ |
(156) |
$ |
83 |
$ |
954 |
$ |
1,037 |
$ |
4,818 |
$ |
3,119 |
$ |
7,937 |
||||||||||||||||||
| Interest-bearing deposits with other banks |
(9) |
(5) |
(14) |
(3) |
13 |
10 |
0 |
43 |
43 |
|||||||||||||||||||||||||||
| Gross loans (2) |
(560) |
4,092 |
3,532 |
(3,051) |
8,910 |
5,859 |
(18,154) |
12,825 |
(5,329) |
|||||||||||||||||||||||||||
| Total earning assets |
(402) |
3,764 |
3,362 |
(2,971) |
9,877 |
6,906 |
(13,336) |
15,987 |
2,651 |
|||||||||||||||||||||||||||
| Interest-bearing liabilities |
||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits |
$ |
415 |
$ |
380 |
$ |
795 |
$ |
1,019 |
$ |
747 |
$ |
1,766 |
$ |
1,896 |
$ |
1,010 |
$ |
2,906 |
||||||||||||||||||
| Borrowed funds |
||||||||||||||||||||||||||||||||||||
| Short-term borrowings |
4 |
(65) |
(61) |
(33) |
69 |
36 |
(180) |
271 |
91 |
|||||||||||||||||||||||||||
| Long-term debt |
(84) |
(64) |
(148) |
(164) |
(67) |
(231) |
(270) |
(381) |
(651) |
|||||||||||||||||||||||||||
| Total borrowed funds |
(80) |
(129) |
(209) |
(197) |
2 |
(195) |
(450) |
(110) |
(560) |
|||||||||||||||||||||||||||
| Total interest-bearing liabilities |
335 |
251 |
586 |
822 |
749 |
1,571 |
1,446 |
900 |
2,346 |
|||||||||||||||||||||||||||
| Net interest income (1) |
$ |
(737) |
$ |
3,513 |
$ |
2,776 |
$ |
(3,793) |
$ |
9,128 |
$ |
5,335 |
$ |
(14,782) |
$ |
15,087 |
$ |
305 |
||||||||||||||||||
| (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) |
|||||||||||||||||||||||||||
| Excluding covered assets* |
|||||||||||||||||||||||||||
| Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar 31, |
Dec. 31, |
Full Year |
Full Year |
|||||||||||||||||||||
| 2014(2) |
2014 |
2014 |
2014 |
2013 |
2014 (2) |
2013 (3) |
|||||||||||||||||||||
| ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY |
|||||||||||||||||||||||||||
| Balance at beginning of period |
$ |
42,454 |
$ |
42,027 |
$ |
43,023 |
$ |
43,829 |
$ |
45,514 |
$ |
43,829 |
$ |
47,777 |
|||||||||||||
| Allowance for covered / formerly covered loans |
11,535 |
* |
* |
* |
* |
11,535 |
* |
||||||||||||||||||||
| Provision for uncovered loan and lease losses |
1,088 |
1,093 |
29 |
1,159 |
1,851 |
3,369 |
8,714 |
||||||||||||||||||||
| Provision for covered / formerly covered loan and lease |
964 |
* |
* |
* |
* |
964 |
* |
||||||||||||||||||||
| Gross charge-offs |
|||||||||||||||||||||||||||
| Commercial |
130 |
83 |
571 |
656 |
293 |
1,440 |
3,415 |
||||||||||||||||||||
| Real estate - construction |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
||||||||||||||||||||
| Real estate - commercial |
385 |
702 |
699 |
543 |
3,113 |
2,329 |
8,326 |
||||||||||||||||||||
| Real estate - residential |
221 |
161 |
283 |
257 |
218 |
922 |
1,016 |
||||||||||||||||||||
| Installment |
78 |
63 |
14 |
128 |
39 |
283 |
335 |
||||||||||||||||||||
| Home equity |
349 |
469 |
383 |
544 |
706 |
1,745 |
2,409 |
||||||||||||||||||||
| Other |
287 |
338 |
237 |
296 |
398 |
1,158 |
1,781 |
||||||||||||||||||||
| Covered / formerly covered loans |
4,318 |
* |
* |
* |
* |
4,318 |
* |
||||||||||||||||||||
| Total gross charge-offs |
5,768 |
1,816 |
2,187 |
2,424 |
4,768 |
12,195 |
17,283 |
||||||||||||||||||||
| Recoveries |
|||||||||||||||||||||||||||
| Commercial |
75 |
566 |
580 |
39 |
194 |
1,260 |
672 |
||||||||||||||||||||
| Real estate - construction |
0 |
0 |
0 |
0 |
46 |
0 |
672 |
||||||||||||||||||||
| Real estate - commercial |
423 |
323 |
334 |
114 |
634 |
1,194 |
1,994 |
||||||||||||||||||||
| Real estate - residential |
29 |
34 |
100 |
27 |
96 |
190 |
203 |
||||||||||||||||||||
| Installment |
45 |
46 |
50 |
77 |
66 |
218 |
310 |
||||||||||||||||||||
| Home equity |
45 |
46 |
37 |
103 |
136 |
231 |
508 |
||||||||||||||||||||
| Other |
111 |
135 |
61 |
99 |
60 |
406 |
262 |
||||||||||||||||||||
| Covered / formerly covered loans |
1,857 |
* |
* |
* |
* |
1,857 |
* |
||||||||||||||||||||
| Total recoveries |
2,585 |
1,150 |
1,162 |
459 |
1,232 |
5,356 |
4,621 |
||||||||||||||||||||
| Total net charge-offs |
3,183 |
666 |
1,025 |
| |||||||||||||||||||||||