FIRST FINANCIAL BANCORP. CINCINNATI, Jan. 21, 2016 /PRNewswire/ -- First Financial Bancorp (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the fourth quarter and full year 2015. For the three months ended December 31, 2015, the Company reported net income of $19.8 million, or $0.32 per diluted common share, compared to net income of $18.7 million, or $0.30 per diluted common share, in the third quarter of 2015 and $18.6 million, or $0.30 per diluted common share, in the fourth quarter of 2014. For the twelve months ended December 31, 2015, the Company reported net income of $75.1 million, or $1.21 per diluted common share, compared to net income of $65.0 million, or $1.09 per diluted common share, in 2014.
Fourth quarter results included approximately $1.0 million of pre-tax, non-operating expenses which were primarily related to severance benefits accrued during the period. Excluding these items, 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%.
Full year results included approximately $5.0 million of pre-tax, non-operating expenses, which were primarily related to the severance expense noted above, expenses related to the Oak Street acquisition and adjustments to reserves for litigation related items. Excluding these items, net income for the twelve months ended December 31, 2015 was $78.3 million, or $1.27 per diluted common share, return on average assets was 1.04% and return on average tangible common equity was 13.20%.
Claude Davis, Chief Executive Officer, commented, "2015 was an exciting year for First Financial. During the year, we celebrated the first anniversary of our expansion into the Columbus, Ohio market, announced and closed the acquisition of Oak Street, executed a $120 million subordinated debt offering and marked our 100th consecutive quarter of profitability. In addition, we recently unveiled a fresh and exciting new website that enhances product and service delivery to our clients through a more modern online experience. I am very pleased with our progress toward building a company that can consistently produce top-quartile results."
"Although net interest margin has been constrained by the prolonged low interest rate environment, we believe we are well positioned to take advantage of rising rates and continue to be excited about the growth opportunities throughout our footprint. Organic loan growth was strong again during the fourth quarter, Oak Street is performing as expected and our ability to successfully grow low-cost core deposits continues to provide competitive advantage as we compete for new business."
"As we look forward to another successful year in 2016, our focus remains centered on effectively and efficiently serving the financial needs of our commercial, small business, consumer and wealth management clients."
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income for the fourth quarter was $66.1 million as compared to $63.2 million for the third quarter 2015 and $61.1 million for the fourth quarter 2014. Compared to the linked quarter, total interest income increased $4.6 million, or 6.6%, while total interest expense increased $1.6 million, or 29.6%. Net interest margin was 3.69%, on a fully tax equivalent basis, for the fourth quarter compared to 3.67% for the third quarter 2015 and 3.72% for the fourth quarter 2014.
Interest income earned on loans increased $3.8 million compared to the prior quarter, as average loan balances increased $212.3 million during the period. The effective yield earned on the loan portfolio increased by 10 bps, to 4.62%, compared to the third quarter. This increase was primarily related to the full-quarter impact of the Oak Street acquisition which closed during the third quarter.
Interest income earned on investment securities increased $0.7 million compared to the prior quarter with average balances increasing $86.1 million. The effective yield earned on the investment portfolio increased 5 bps to 2.44% as the Company continued to reinvest cash flows into predominately fixed-rate instruments during the quarter.
Interest expense increased by $1.6 million, compared to the prior quarter, due primarily to a full quarter's impact of the $120 million subordinated debt issued during the third quarter as well as a $16.7 million increase in average borrowed funds and a $229.2 million increase in average interest-bearing deposits. Additionally, and as previously reported, accelerated amortization of the fair-value mark on acquired, long-term FHLB debt, which was prepaid during the third quarter, reduced interest expense by $0.5 million during that period.
The effective cost of borrowed funds increased by 68 bps to 103 bps, primarily related to the full-quarter impact of the subordinated debt, while the cost of interest-bearing deposits was unchanged at 42 bps when compared to the third quarter.
NON-INTEREST INCOME
The Company's non-interest income was $15.8 million for the fourth quarter of 2015 compared to $20.4 million for the third quarter of 2015 and $16.9 million for the fourth quarter of 2014. The $4.5 million decrease versus the linked quarter was primarily related to a $3.0 million decrease in accelerated discount on covered / formerly covered loans, a $0.7 million decrease in fee income related to the Company's client derivative program, a $0.5 million decrease in income distributions from limited partnerships, a $0.4 million decrease in gain on sale of mortgage loans, and a $0.4 million decrease in gain on sale of investment securities, partially offset by a $0.8 million increase in FDIC indemnification income.
NON-INTEREST EXPENSE
The Company's non-interest expense was $51.3 million for the fourth quarter of 2015 compared to $53.0 million for the third quarter of 2015 and $49.7 million for the fourth quarter of 2014. The $1.7 million decrease over the linked quarter was primarily related to $4.0 million of previously disclosed third quarter expenses not expected to recur, partially offset by a $0.8 million increase in severance, a $0.6 million increase in health care related costs, a $0.5 million increase in losses on OREO and a $0.4 million increase in performance incentives.
BALANCE SHEET & CAPITAL
Total assets were $8.1 billion, total loans were $5.4 billion and investment securities were $2.0 billion as of December 31, 2015. Total assets increased by $266.9 million, or 13.4% annualized, from the prior quarter and by $929.6 million, or 12.9%, over the prior year. Total loans increased by $172.7 million, or 13.1% annualized, from the prior quarter and by $611.5 million, or 12.8%, over the prior year. Investment securities increased by $91.5 million, or 19.3% annualized, from the prior quarter and increased by $209.5 million, or 11.9%, over the prior year.
Total deposits were $6.2 billion as of December 31, 2015, an increase of $98.2 million, or 6.4% annualized, compared to the prior quarter and $523.9 million, or 9.3%, higher than a year ago. Borrowed funds were $1.1 billion as of December 31, 2015, compared to $883.0 million as of September 30, 2015 and $709.6 million as of December 31, 2014.
During the quarter, the Company repurchased 91,032 of its shares at a weighted average price of $18.85 and has now repurchased 1,490,867 of the 5,000,000 shares authorized in 2012. As of December 31, 2015, the Company had total shareholders' equity of $809.4 million, a decrease of $3.6 million, or 1.8% annualized, over the prior quarter and an increase of $25.3 million, or 3.2%, over the prior year. The linked quarter decline in total shareholders' equity was primarily related to the impact to Other Comprehensive Income from the year-end valuation of the Company's pension plan.
The Company's regulatory capital ratios remain strong and, as of December 31, 2015, were as follows: leverage ratio of 8.33%, total capital ratio of 13.04%, tier 1 capital ratio of 10.29% and tangible common equity ratio of 7.53%. The Company's tangible book value per share was $9.69 as of December 31, 2015.
ASSET QUALITY
Fourth quarter provision expense was $1.9 million and the total allowance for loan and lease losses as of December 31, 2015 was $53.4 million. The allowance as a percentage of period-end loans was 0.99% at the end of the fourth quarter which represents a 3 bps decline from 1.02% at the end of the third quarter. The balance of the Company's total allowance and loan marks, net of the indemnification asset, was 1.11% of total loans and leases as of December 31, 2015 which represents a 6 bps decline from 1.17% as of September 30, 2015. This change is largely attributable to the strong organic loan growth during the fourth quarter as well as the decline in nonaccrual loans and other asset quality improvements during the period.
For the fourth quarter, net charge-offs totaled $1.8 million, a decrease of $0.4 million, or 17.9% compared to the linked quarter, and were 0.14% of average loans on an annualized basis. For the full year 2015, net charge-offs were $9.1 million or 0.18% of average loans. Nonaccrual loans decreased $7.7 million, or 21.6%, to $28.0 million as of December 31, 2015. Total classified assets increased $3.7 million, or 2.9% to $132.4 million as of December 31, 2015, as payoffs and other resolution activities during the period were offset by the downgrade of a single performing commercial relationship during the fourth quarter on which First Financial expects to receive all contractual principal and interest.
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 22, 2016 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 10079287. 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 December 31, 2015, the Company had $8.1 billion in assets, $5.4 billion in loans, $6.2 billion in deposits and $809.4 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 $2.3 billion in assets under management as of December 31, 2015. 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, 2014, 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, Jun. 30, Mar. 31, Dec. 31, Dec. 31,
2015 2015 2015 2015 2014 2015 2014
---- ---- ---- ---- ---- ---- ----
RESULTS OF OPERATIONS
Net income $19,820 $18,673 $18,949 $17,621 $18,599 $75,063 $65,000
Net earnings per share - basic $0.33 $0.31 $0.31 $0.29 $0.31 $1.23 $1.11
Net earnings per share - diluted $0.32 $0.30 $0.31 $0.29 $0.30 $1.21 $1.09
Dividends declared per share $0.16 $0.16 $0.16 $0.16 $0.16 $0.64 $0.61
KEY FINANCIAL RATIOS
Return on average assets 0.99% 0.97% 1.05% 0.99% 1.02% 1.00% 0.96%
Return on average shareholders' equity 9.62% 9.12% 9.49% 9.06% 9.46% 9.33% 8.94%
Return on average tangible shareholders' equity 12.98% 12.33% 11.60% 11.12% 11.63% 12.66% 11.18%
Net interest margin 3.63% 3.61% 3.56% 3.61% 3.67% 3.60% 3.71%
Net interest margin (fully tax equivalent) (1) 3.69% 3.67% 3.62% 3.67% 3.72% 3.66% 3.76%
Ending shareholders' equity as a percent of ending assets 9.93% 10.32% 10.87% 10.98% 10.86% 9.93% 10.86%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets 7.53% 7.84% 9.08% 9.16% 9.02% 7.53% 9.02%
Risk-weighted assets 9.47% 9.90% 11.63% 11.64% 12.02% 9.47% 12.02%
Average shareholders' equity as a percent of average assets 10.29% 10.67% 11.05% 10.95% 10.77% 10.73% 10.75%
Average tangible shareholders' equity as a percent of
average tangible assets 7.83% 8.12% 9.23% 9.11% 8.94% 8.13% 8.79%
Book value per share $13.13 $13.17 $13.00 $12.90 $12.76 $13.13 $12.76
Tangible book value per share $9.69 $9.74 $10.65 $10.54 $10.38 $9.69 $10.38
Common equity tier 1 ratio (2) 10.28% 10.51% 12.34% 12.29% 12.69% 10.28% 12.69%
Tier 1 ratio (2) 10.29% 10.52% 12.35% 12.29% 12.69% 10.29% 12.69%
Total capital ratio (2) 13.04% 13.37% 13.31% 13.27% 13.71% 13.04% 13.71%
Leverage ratio (2) 8.33% 8.58% 9.77% 9.67% 9.44% 8.33% 9.44%
AVERAGE BALANCE SHEET ITEMS
Loans (3) $5,248,465 $5,032,708 $4,793,471 $4,770,671 $4,758,374 $4,962,834 $4,290,953
FDIC indemnification asset 18,437 19,848 20,744 22,112 24,172 20,274 32,436
Investment securities 1,934,173 1,848,083 1,782,785 1,762,622 1,811,941 1,832,430 1,824,107
Interest-bearing deposits with other banks 18,920 37,468 19,960 21,255 22,617 24,430 16,507
------ ------ ------ ------ ------ ------ ------
Total earning assets $7,219,995 $6,938,107 $6,616,960 $6,576,660 $6,617,104 $6,839,968 $6,164,003
Total assets $7,950,278 $7,611,389 $7,243,886 $7,201,313 $7,241,869 $7,504,069 $6,760,959
Noninterest-bearing deposits $1,402,283 $1,344,049 $1,325,485 $1,286,067 $1,290,754 $1,339,802 $1,169,851
Interest-bearing deposits 4,845,056 4,615,886 4,446,248 4,361,525 4,372,529 4,568,637 3,987,323
--------- --------- --------- --------- --------- --------- ---------
Total deposits $6,247,339 $5,959,935 $5,771,733 $5,647,592 $5,663,283 $5,908,439 $5,157,174
Borrowings $763,408 $746,706 $587,225 $691,012 $733,726 $697,422 $804,584
Shareholders' equity $817,756 $812,396 $800,598 $788,511 $780,131 $804,916 $727,015
CREDIT QUALITY RATIOS
Allowance to ending loans 0.99% 1.02% 1.09% 1.11% 1.11% 0.99% 1.11%
Allowance to nonaccrual loans 190.73% 149.33% 133.28% 107.98% 109.06% 190.73% 109.06%
Allowance to nonperforming loans 93.89% 95.34% 88.49% 82.18% 82.08% 93.89% 82.08%
Nonperforming loans to total loans 1.06% 1.07% 1.23% 1.36% 1.35% 1.06% 1.35%
Nonperforming assets to ending loans, plus OREO 1.30% 1.36% 1.56% 1.79% 1.81% 1.30% 1.81%
Nonperforming assets to total assets 0.86% 0.90% 1.03% 1.18% 1.21% 0.86% 1.21%
Net charge-offs to average loans (annualized) 0.14% 0.17% 0.27% 0.16% 0.27% 0.18% 0.28%
(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, 2015 regulatory
capital ratios are preliminary.
(3) Includes loans held for sale.
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,
-------- --------
2015 2014 % Change 2015 2014 % Change
---- ---- -------- ---- ---- --------
Interest income
Loans, including fees $62,502 $57,087 9.5% $230,246 $208,836 10.3%
Investment securities
Taxable 10,702 9,905 8.0% 39,577 40,924 (3.3)%
Tax-exempt 1,192 1,060 12.5% 4,611 3,560 29.5%
----- ----- ---- ----- ----- ----
Total investment securities interest 11,894 10,965 8.5% 44,188 44,484 (0.7)%
Other earning assets (1,164) (1,299) 10.4% (4,675) (5,461) 14.4%
------ ------ ---- ------ ------ ----
Total interest income 73,232 66,753 9.7% 269,759 247,859 8.8%
Interest expense
Deposits 5,172 5,013 3.2% 19,474 16,153 20.6%
Short-term borrowings 434 293 48.1% 1,364 1,268 7.6%
Long-term borrowings 1,543 308 401.0% 2,419 1,813 33.4%
----- --- ----- ----- ----- ----
Total interest expense 7,149 5,614 27.3% 23,257 19,234 20.9%
----- ----- ---- ------ ------ ----
Net interest income 66,083 61,139 8.1% 246,502 228,625 7.8%
Provision for loan and lease losses 1,864 2,052 (9.2)% 9,641 1,528 531.0%
----- ----- ----- ----- ----- -----
Net interest income after provision for 64,219 59,087 8.7% 236,861 227,097 4.3%
loan and lease losses
Noninterest income
Service charges on deposit accounts 4,755 5,102 (6.8)% 19,015 20,274 (6.2)%
Trust and wealth management fees 3,086 3,376 (8.6)% 13,128 13,634 (3.7)%
Bankcard income 3,077 2,639 16.6% 11,578 10,740 7.8%
Net gains from sales of loans 1,325 1,571 (15.7)% 6,471 4,364 48.3%
Net gain on sale of investment securities 2 20 100.0% 1,505 70 2,050.0%
FDIC loss sharing income (164) (43) (281.4)% (2,487) 365 (781.4)%
Accelerated discount on covered / formerly covered loans 785 1,759 (55.4)% 10,791 4,184 157.9%
Other 2,953 2,518 17.3% 15,201 10,334 47.1%
----- ----- ---- ------ ------ ----
Total noninterest income 15,819 16,942 (6.6)% 75,202 63,965 17.6%
Noninterest expenses
Salaries and employee benefits 29,632 28,140 5.3% 111,792 107,702 3.8%
Net occupancy 4,337 4,806 (9.8)% 18,232 19,187 (5.0)%
Furniture and equipment 2,185 2,229 (2.0)% 8,722 8,554 2.0%
Data processing 2,843 2,942 (3.4)% 10,863 12,963 (16.2)%
Marketing 1,052 1,048 0.4% 3,723 3,603 3.3%
Communication 502 551 (8.9)% 2,161 2,277 (5.1)%
Professional services 1,833 1,429 28.3% 9,622 6,170 55.9%
State intangible tax 598 175 241.7% 2,331 2,111 10.4%
FDIC assessments 1,139 1,128 1.0% 4,446 4,462 (0.4)%
Loss (gain) - other real estate owned 772 289 167.1% 1,861 862 115.9%
Loss sharing expense 414 650 (36.3)% 1,865 4,686 (60.2)%
Other 5,977 6,275 (4.7)% 25,512 23,457 8.8%
----- ----- ----- ------ ------ ---
Total noninterest expenses 51,284 49,662 3.3% 201,130 196,034 2.6%
------ ------ --- ------- ------- ---
Income before income taxes 28,754 26,367 9.1% 110,933 95,028 16.7%
Income tax expense 8,934 7,768 15.0% 35,870 30,028 19.5%
----- ----- ---- ------ ------ ----
Net income $19,820 $18,599 6.6% $75,063 $65,000 15.5%
======= ======= === ======= ======= ====
ADDITIONAL DATA
Net earnings per share - basic $0.33 $0.31 $1.23 $1.11
Net earnings per share - diluted $0.32 $0.30 $1.21 $1.09
Dividends declared per share $0.16 $0.16 $0.64 $0.61
Return on average assets 0.99% 1.02% 1.00% 0.96%
Return on average shareholders' equity 9.62% 9.46% 9.33% 8.94%
Interest income $73,232 $66,753 9.7% $269,759 $247,859 8.8%
Tax equivalent adjustment 1,046 946 10.6% 4,017 3,224 24.6%
----- --- ---- ----- ----- ----
Interest income - tax equivalent 74,278 67,699 9.7% 273,776 251,083 9.0%
Interest expense 7,149 5,614 27.3% 23,257 19,234 20.9%
----- ----- ---- ------ ------ ----
Net interest income - tax equivalent $67,129 $62,085 8.1% $250,519 $231,849 8.1%
======= ======= === ======== ======== ===
Net interest margin 3.63% 3.67% 3.60% 3.71%
Net interest margin (fully tax equivalent) (1) 3.69% 3.72% 3.66% 3.76%
Full-time equivalent employees 1,400 1,369
(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.
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2015
----
Fourth Third Second First Full % Change
Quarter Quarter Quarter Quarter Year Linked Qtr.
------- ------- ------- ------- ---- -----------
Interest income
Loans, including fees $62,502 $58,694 $54,586 $54,464 $230,246 6.5%
Investment securities
Taxable 10,702 9,986 9,281 9,608 39,577 7.2%
Tax-exempt 1,192 1,163 1,139 1,117 4,611 2.5%
----- ----- ----- ----- ----- ---
Total investment securities interest 11,894 11,149 10,420 10,725 44,188 6.7%
Other earning assets (1,164) (1,168) (1,162) (1,181) (4,675) 0.3%
------ ------ ------ ------ ------ ---
Total interest income 73,232 68,675 63,844 64,008 269,759 6.6%
Interest expense
Deposits 5,172 4,861 4,621 4,820 19,474 6.4%
Short-term borrowings 434 374 253 303 1,364 16.0%
Long-term borrowings 1,543 281 296 299 2,419 449.1%
----- --- --- --- ----- -----
Total interest expense 7,149 5,516 5,170 5,422 23,257 29.6%
----- ----- ----- ----- ------ ----
Net interest income 66,083 63,159 58,674 58,586 246,502 4.6%
Provision for loan and lease losses 1,864 2,647 3,070 2,060 9,641 (29.6)%
----- ----- ----- ----- ------
Net interest income after provision for 64,219 60,512 55,604 56,526 236,861 6.1%
loan and lease losses
Noninterest income
Service charges on deposit accounts 4,755 4,934 4,803 4,523 19,015 (3.6)%
Trust and wealth management fees 3,086 3,134 3,274 3,634 13,128 (1.5)%
Bankcard income 3,077 2,909 2,972 2,620 11,578 5.8%
Net gains from sales of loans 1,325 1,758 1,924 1,464 6,471 (24.6)%
Net gain on sale of investment securities 2 409 1,094 0 1,505 100.0%
FDIC loss sharing income (164) (973) (304) (1,046) (2,487) (83.1)%
Accelerated discount on 785 3,820 4,094 2,092 10,791 (79.5)%
covered / formerly covered loans
Other 2,953 4,364 3,558 4,326 15,201 (32.3)%
----- ----- ----- ----- ------ ------
Total noninterest income 15,819 20,355 21,415 17,613 75,202 (22.3)%
Noninterest expenses
Salaries and employee benefits 29,632 27,768 27,451 26,941 111,792 6.7%
Net occupancy 4,337 4,510 4,380 5,005 18,232 (3.8)%
Furniture and equipment 2,185 2,165 2,219 2,153 8,722 0.9%
Data processing 2,843 2,591 2,657 2,772 10,863 9.7%
Marketing 1,052 810 973 888 3,723 29.9%
Communication 502 531 558 570 2,161 (5.5)%
Professional services 1,833 4,092 1,727 1,970 9,622 (55.2)%
State intangible tax 598 579 577 577 2,331 3.3%
FDIC assessments 1,139 1,103 1,114 1,090 4,446 3.3%
Loss (gain) - other real estate owned 772 196 419 474 1,861 293.9%
Loss sharing expense 414 574 576 301 1,865 (27.9)%
Other 5,977 8,073 6,135 5,327 25,512 (26.0)%
----- ----- ----- ----- ------ ------
Total noninterest expenses 51,284 52,992 48,786 48,068 201,130 (3.2)%
------ ------ ------ ------ ------- -----
Income before income taxes 28,754 27,875 28,233 26,071 110,933 3.2%
Income tax expense 8,934 9,202 9,284 8,450 35,870 (2.9)%
----- ----- ----- ----- ------ -----
Net income $19,820 $18,673 $18,949 $17,621 $75,063 6.1%
======= ======= ======= ======= ======= ===
ADDITIONAL DATA
Net earnings per share - basic $0.33 $0.31 $0.31 $0.29 $1.23
Net earnings per share - diluted $0.32 $0.30 $0.31 $0.29 $1.21
Dividends declared per share $0.16 $0.16 $0.16 $0.16 $0.64
Return on average assets 0.99% 0.97% 1.05% 0.99% 1.00%
Return on average shareholders' equity 9.62% 9.12% 9.49% 9.06% 9.33%
Interest income $73,232 $68,675 $63,844 $64,008 $269,759 6.6%
Tax equivalent adjustment 1,046 1,000 988 983 4,017 4.6%
----- ----- --- --- ----- ---
Interest income - tax equivalent 74,278 69,675 64,832 64,991 273,776 6.6%
Interest expense 7,149 5,516 5,170 5,422 23,257 29.6%
----- ----- ----- ----- ------ ----
Net interest income - tax equivalent $67,129 $64,159 $59,662 $59,569 $250,519 4.6%
======= ======= ======= ======= ======== ===
Net interest margin 3.63% 3.61% 3.56% 3.61% 3.60%
Net interest margin (fully tax equivalent) (1) 3.69% 3.67% 3.62% 3.67% 3.66%
Full-time equivalent employees 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.
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 Full
Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- ----
Interest income
Loans, including fees $57,087 $53,725 $48,877 $49,147 $208,836
Investment securities
Taxable 9,905 10,227 10,355 10,437 40,924
Tax-exempt 1,060 894 796 810 3,560
----- --- --- --- -----
Total investment securities interest 10,965 11,121 11,151 11,247 44,484
Other earning assets (1,299) (1,455) (1,301) (1,406) (5,461)
------ ------ ------ ------ ------
Total interest income 66,753 63,391 58,727 58,988 247,859
Interest expense
Deposits 5,013 4,218 3,606 3,316 16,153
Short-term borrowings 293 354 292 329 1,268
Long-term borrowings 308 456 525 524 1,813
--- --- --- --- -----
Total interest expense 5,614 5,028 4,423 4,169 19,234
----- ----- ----- ----- ------
Net interest income 61,139 58,363 54,304 54,819 228,625
Provision for loan and lease losses 2,052 893 (384) (1,033) 1,528
----- --- ---- ------ -----
Net interest income after provision for 59,087 57,470 54,688 55,852 227,097
loan and lease losses
Noninterest income
Service charges on deposit accounts 5,102 5,263 5,137 4,772 20,274
Trust and wealth management fees 3,376 3,207 3,305 3,746 13,634
Bankcard income 2,639 2,859 2,809 2,433 10,740
Net gains from sales of loans 1,571 1,660 737 396 4,364
Net gain on sale of investment securities 20 0 0 50 70
FDIC loss sharing income (43) (192) 1,108 (508) 365
Accelerated discount on 1,759 789 621 1,015 4,184
covered / formerly covered loans
Other 2,518 2,925 2,620 2,271 10,334
----- ----- ----- ----- ------
Total noninterest income 16,942 16,511 16,337 14,175 63,965
Noninterest expenses
Salaries and employee benefits 28,140 28,686 25,615 25,261 107,702
Net occupancy 4,806 4,577 4,505 5,299 19,187
Furniture and equipment 2,229 2,265 1,983 2,077 8,554
Data processing 2,942 4,393 2,770 2,858 12,963
Marketing 1,048 939 830 786 3,603
Communication 551 541 562 623 2,277
Professional services 1,429 1,568 1,449 1,724 6,170
State intangible tax 175 648 644 644 2,111
FDIC assessments 1,128 1,126 1,074 1,134 4,462
Loss (gain) - other real estate owned 289 (589) 711 451 862
Loss sharing expense 650 1,002 1,465 1,569 4,686
Other 6,275 6,263 5,503 5,416 23,457
----- ----- ----- ----- ------
Total noninterest expenses 49,662 51,419 47,111 47,842 196,034
------ ------ ------ ------ -------
Income before income taxes 26,367 22,562 23,914 22,185 95,028
Income tax expense 7,768 7,218 7,961 7,081 30,028
----- ----- ----- ----- ------
Net income $18,599 $15,344 $15,953 $15,104 $65,000
======= ======= ======= ======= =======
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
Tax equivalent adjustment 946 818 758 702 3,224
--- --- --- --- -----
Interest income - tax equivalent 67,699 64,209 59,485 59,690 251,083
Interest expense 5,614 5,028 4,423 4,169 19,234
----- ----- ----- ----- ------
Net interest income - tax equivalent $62,085 $59,181 $55,062 $55,521 $231,849
======= ======= ======= ======= ========
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 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)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, % Change % Change
2015 2015 2015 2015 2014 Linked Qtr. Comparable Qtr.
---- ---- ---- ---- ---- ----------- ---------------
ASSETS
Cash and due from banks $114,841 $112,298 $116,318 $111,011 $110,122 2.3% 4.3%
Interest-bearing deposits with other banks 33,734 24,191 41,027 25,350 22,630 39.4% 49.1%
Investment securities available-for-sale 1,190,642 1,069,667 955,764 892,169 840,468 11.3% 41.7%
Investment securities held-to-maturity 726,259 756,035 791,839 839,666 867,996 (3.9)% (16.3)%
Other investments 53,725 53,431 53,585 53,393 52,626 0.6% 2.1%
Loans held for sale 20,957 26,287 21,151 14,937 11,005 (20.3)% 90.4%
Loans
Commercial 1,663,102 1,637,467 1,315,087 1,298,874 1,315,114 1.6% 26.5%
Real estate - construction 311,712 276,240 229,256 227,969 197,571 12.8% 57.8%
Real estate - commercial 2,258,297 2,169,662 2,171,806 2,120,084 2,140,667 4.1% 5.5%
Real estate - residential 512,311 506,653 506,391 496,852 501,894 1.1% 2.1%
Installment 41,506 39,974 43,073 43,798 47,320 3.8% (12.3)%
Home equity 466,629 463,629 463,222 456,278 458,627 0.6% 1.7%
Credit card 41,217 39,759 39,216 37,886 38,475 3.7% 7.1%
Lease financing 93,986 82,679 84,723 81,796 77,567 13.7% 21.2%
------ ------ ------ ------ ------ ---- ----
Total loans 5,388,760 5,216,063 4,852,774 4,763,537 4,777,235 3.3% 12.8%
Less
Allowance for loan and lease losses 53,398 53,332 52,876 53,076 52,858 0.1% 1.0%
------ ------ ------ ------ ------ --- ---
Net loans 5,335,362 5,162,731 4,799,898 4,710,461 4,724,377 3.3% 12.9%
Premises and equipment 136,603 139,020 139,170 140,477 141,381 (1.7)% (3.4)%
Goodwill and other intangibles 211,865 211,732 145,465 145,586 145,853 0.1% 45.3%
FDIC indemnification asset 17,630 18,931 20,338 20,397 22,666 (6.9)% (22.2)%
Accrued interest and other assets 305,793 306,210 298,817 292,349 278,697 (0.1)% 9.7%
------- ------- ------- ------- ------- ----- ---
Total Assets $8,147,411 $7,880,533 $7,383,372 $7,245,796 $7,217,821 3.4% 12.9%
========== ========== ========== ========== ========== === ====
LIABILITIES
Deposits
Interest-bearing demand $1,414,291 $1,330,673 $1,175,219 $1,214,882 $1,225,378 6.3% 15.4%
Savings 1,945,805 1,979,627 1,947,566 1,922,815 1,889,473 (1.7)% 3.0%
Time 1,406,124 1,440,223 1,262,881 1,277,291 1,255,364 (2.4)% 12.0%
--------- --------- --------- --------- --------- ----- ----
Total interest-bearing deposits 4,766,220 4,750,523 4,385,666 4,414,988 4,370,215 0.3% 9.1%
Noninterest-bearing 1,413,404 1,330,905 1,330,149 1,299,602 1,285,527 6.2% 9.9%
--------- --------- --------- --------- --------- --- ---
Total deposits 6,179,624 6,081,428 5,715,815 5,714,590 5,655,742 1.6% 9.3%
Federal funds purchased and securities sold
under agreements to repurchase 89,325 62,317 68,349 68,142 103,192 43.3% (13.4)%
FHLB short-term borrowings 849,100 701,200 641,700 523,500 558,200 21.1% 52.1%
------- ------- ------- ------- ------- ---- ----
Total short-term borrowings 938,425 763,517 710,049 591,642 661,392 22.9% 41.9%
Long-term debt 119,540 119,515 47,084 47,598 48,241 0.0% 147.8%
------- ------- ------ ------ ------ --- -----
Total borrowed funds 1,057,965 883,032 757,133 639,240 709,633 19.8% 49.1%
Accrued interest and other liabilities 100,446 103,061 108,041 96,224 68,369 (2.5)% 46.9%
------- ------- ------- ------ ------ ----- ----
Total Liabilities 7,338,035 7,067,521 6,580,989 6,450,054 6,433,744 3.8% 14.1%
SHAREHOLDERS' EQUITY
Common stock 571,155 570,025 571,501 570,623 574,643 0.2% (0.6)%
Retained earnings 388,240 378,258 369,462 360,390 352,893 2.6% 10.0%
Accumulated other comprehensive loss (30,580) (17,219) (20,715) (17,054) (21,409) 77.6% 42.8%
Treasury stock, at cost (119,439) (118,052) (117,865) (118,217) (122,050) 1.2% (2.1)%
-------- -------- -------- -------- -------- --- -----
Total Shareholders' Equity 809,376 813,012 802,383 795,742 784,077 (0.4)% 3.2%
------- ------- ------- ------- ------- ----- ---
Total Liabilities and Shareholders' Equity $8,147,411 $7,880,533 $7,383,372 $7,245,796 $7,217,821 3.4% 12.9%
========== ========== ========== ========== ========== === ====
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, December 31,
2015 2015 2015 2015 2014 2015 2014
---- ---- ---- ---- ---- ---- ----
ASSETS
Cash and due from banks $119,881 $114,279 $114,024 $112,841 $124,216 $115,273 $123,077
Federal funds sold 0 0 0 0 0 0 2,217
Interest-bearing deposits with other banks 18,920 37,468 19,960 21,255 22,617 24,430 14,290
Investment securities 1,934,173 1,848,083 1,782,785 1,762,622 1,811,941 1,832,430 1,824,107
Loans held for sale 18,677 15,185 9,292 8,606 11,774 12,974 10,163
Loans
Commercial 1,612,485 1,464,508 1,318,408 1,300,869 1,282,752 1,425,032 1,188,882
Real estate - construction 295,574 259,972 226,314 215,380 192,626 249,559 135,765
Real estate - commercial 2,180,015 2,164,917 2,117,450 2,129,434 2,158,336 2,148,139 1,891,998
Real estate - residential 505,208 500,544 497,350 496,451 493,895 499,914 461,547
Installment 41,148 42,008 43,393 45,376 49,356 42,967 49,721
Home equity 465,131 462,283 459,414 458,083 456,494 461,250 437,072
Credit card 41,027 39,991 39,272 38,409 38,966 39,683 38,022
Lease financing 89,200 83,300 82,578 78,063 74,175 83,316 77,783
------ ------ ------ ------ ------ ------ ------
Total loans 5,229,788 5,017,523 4,784,179 4,762,065 4,746,600 4,949,860 4,280,790
Less
Allowance for loan and lease losses 53,731 54,398 54,662 53,648 54,656 54,111 56,828
------ ------ ------ ------ ------ ------ ------
Net loans 5,176,057 4,963,125 4,729,517 4,708,417 4,691,944 4,895,749 4,223,962
Premises and equipment 138,689 139,457 140,117 141,153 141,871 139,846 137,506
Goodwill and other intangibles 211,722 179,333 145,500 145,689 145,872 170,766 118,403
FDIC indemnification asset 18,437 19,848 20,744 22,112 24,172 20,274 32,436
Accrued interest and other assets 313,722 294,611 281,947 278,618 267,462 292,327 274,798
------- ------- ------- ------- ------- ------- -------
Total Assets $7,950,278 $7,611,389 $7,243,886 $7,201,313 $7,241,869 $7,504,069 $6,760,959
========== ========== ========== ========== ========== ========== ==========
LIABILITIES
Deposits
Interest-bearing demand $1,423,915 $1,230,621 $1,220,391 $1,176,263 $1,217,852 $1,263,388 $1,157,783
Savings 2,005,100 2,015,373 1,950,127 1,914,723 1,904,568 1,971,699 1,756,682
Time 1,416,041 1,369,892 1,275,730 1,270,539 1,250,109 1,333,550 1,072,858
--------- --------- --------- --------- --------- --------- ---------
Total interest-bearing deposits 4,845,056 4,615,886 4,446,248 4,361,525 4,372,529 4,568,637 3,987,323
Noninterest-bearing 1,402,283 1,344,049 1,325,485 1,286,067 1,290,754 1,339,802 1,169,851
--------- --------- --------- --------- --------- --------- ---------
Total deposits 6,247,339 5,959,935 5,771,733 5,647,592 5,663,283 5,908,439 5,157,174
Federal funds purchased an securities sold
under agreements to repurchase 79,354 68,505 67,664 77,269 119,712 73,191 119,795
FHLB short-term borrowings 564,522 606,618 472,295 565,918 564,062 552,483 627,181
------- ------- ------- ------- ------- ------- -------
Total short-term borrowings 643,876 675,123 539,959 643,187 683,774 625,674 746,976
Long-term debt 119,532 71,583 47,266 47,825 49,952 71,748 57,608
------- ------ ------ ------ ------ ------ ------
Total borrowed funds 763,408 746,706 587,225 691,012 733,726 697,422 804,584
Accrued interest and other liabilities 121,775 92,352 84,330 74,198 64,729 93,292 72,186
------- ------ ------ ------ ------ ------ ------
Total Liabilities 7,132,522 6,798,993 6,443,288 6,412,802 6,461,738 6,699,153 6,033,944
SHAREHOLDERS' EQUITY
Common stock 570,510 570,723 571,078 573,932 574,588 571,549 574,576
Retained earnings 385,295 378,160 365,847 355,848 347,435 371,387 336,557
Accumulated other comprehensive loss (18,962) (19,725) (18,242) (20,163) (18,841) (19,271) (23,527)
Treasury stock, at cost (119,087) (116,762) (118,085) (121,106) (123,051) (118,749) (160,591)
-------- -------- -------- -------- -------- -------- --------
Total Shareholders' Equity 817,756 812,396 800,598 788,511 780,131 804,916 727,015
------- ------- ------- ------- ------- ------- -------
Total Liabilities and Shareholders' Equity $7,950,278 $7,611,389 $7,243,886 $7,201,313 $7,241,869 $7,504,069 $6,760,959
========== ========== ========== ========== ========== ========== ==========
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
Quarterly Averages Year-to-Date Averages
------------------ ---------------------
December 31, 2015 September 30, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Balance Yield Balance Yield Balance Yield Balance Yield Balance Yield
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Earning assets
Investments:
Investment securities $1,934,173 2.44% $1,848,083 2.39% $1,811,941 2.40% $1,832,430 2.41% $1,824,107 2.44%
Interest-bearing deposits with other banks 18,920 0.29% 37,468 0.25% 22,617 0.30% 24,430 0.27% 16,507 0.42%
Gross loans (2) 5,266,902 4.62% 5,052,556 4.52% 4,782,546 4.63% 4,983,108 4.53% 4,323,389 4.70%
--------- ---- --------- ---- --------- ---- --------- ---- --------- ----
Total earning assets 7,219,995 4.02% 6,938,107 3.93% 6,617,104 4.00% 6,839,968 3.94% 6,164,003 4.02%
Nonearning assets
Allowance for loan and lease losses (53,731) (54,398) (54,656) (54,111) (56,828)
Cash and due from banks 119,881 114,279 124,216 115,273 123,077
Accrued interest and other assets 664,133 613,401 555,205 602,939 530,707
------- ------- ------- ------- -------
Total assets $7,950,278 $7,611,389 $7,241,869 $7,504,069 $6,760,959
========== ========== ========== ========== ==========
Interest-bearing liabilities
Deposits:
Interest-bearing demand $1,423,915 0.13% $1,230,621 0.09% $1,217,852 0.10% $1,263,388 0.10% $1,157,783 0.11%
Savings 2,005,100 0.20% 2,015,373 0.19% 1,904,568 0.31% 1,971,699 0.21% 1,756,682 0.25%
Time 1,416,041 1.03% 1,369,892 1.05% 1,250,109 1.02% 1,333,550 1.06% 1,072,858 0.98%
--------- ---- --------- ---- --------- ---- --------- ---- --------- ----
Total interest-bearing deposits 4,845,056 0.42% 4,615,886 0.42% 4,372,529 0.45% 4,568,637 0.43% 3,987,323 0.41%
Borrowed funds
Short-term borrowings 643,876 0.27% 675,123 0.22% 683,774 0.17% 625,674 0.22% 746,976 0.17%
Long-term debt 119,532 5.12% 71,583 1.56% 49,952 2.45% 71,748 3.37% 57,608 3.15%
------- ---- ------ ---- ------ ---- ------ ---- ------ ----
Total borrowed funds 763,408 1.03% 746,706 0.35% 733,726 0.32% 697,422 0.54% 804,584 0.38%
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
Total interest-bearing liabilities 5,608,464 0.51% 5,362,592 0.41% 5,106,255 0.44% 5,266,059 0.44% 4,791,907 0.40%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits 1,402,283 1,344,049 1,290,754 1,339,802 1,169,851
Other liabilities 121,775 92,352 64,729 93,292 72,186
Shareholders' equity 817,756 812,396 780,131 804,916 727,015
------- ------- ------- ------- -------
Total liabilities & shareholders' equity $7,950,278 $7,611,389 $7,241,869 $7,504,069 $6,760,959
========== ========== ========== ========== ==========
Net interest income (1) $66,083 $63,159 $61,139 $246,502 $228,625
======= ======= ======= ======== ========
Net interest spread (1) 3.51% 3.52% 3.56% 3.50% 3.62%
==== ==== ==== ==== ====
Net interest margin (1) 3.63% 3.61% 3.67% 3.60% 3.71%
==== ==== ==== ==== ====
(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 $216 $529 $745 $177 $752 $929 $(497) $201 $(296)
Interest-bearing deposits with other banks 4 (14) (10) 0 (3) (3) (26) 21 (5)
Gross loans (2) 1,326 2,496 3,822 (86) 5,639 5,553 (7,654) 29,855 22,201
----- ----- ----- --- ----- ----- ------ ------ ------
Total earning assets 1,546 3,011 4,557 91 6,388 6,479 (8,177) 30,077 21,900
Interest-bearing liabilities
Total interest-bearing deposits $66 $245 $311 $(345) $504 $159 $843 $2,478 $3,321
Borrowed funds
Short-term borrowings 81 (21) 60 168 (27) 141 360 (264) 96
Long-term debt 643 619 1,262 337 898 1,235 129 477 606
--- --- ----- --- --- ----- --- --- ---
Total borrowed funds 724 598 1,322 505 871 1,376 489 213 702
--- --- ----- --- --- ----- --- --- ---
Total interest-bearing liabilities 790 843 1,633 160 1,375 1,535 1,332 2,691 4,023
Net interest income (1) $756 $2,168 $2,924 $(69) $5,013 $4,944 $(9,509) $27,386 $17,877
==== ====== ====== ==== ====== ====== ======= ======= =======
(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)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Full Year Full Year
2015 2015 2015 2015 2014 2015 2014
---- ---- ---- ---- ---- ---- ----
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period $53,332 $52,876 $53,076 $52,858 $53,989 $52,858 $62,730
Provision for loan and lease losses 1,864 2,647 3,070 2,060 2,052 9,641 1,528
Gross charge-offs
Commercial 622 536 510 1,481 130 3,149 1,440
Real estate - construction 0 85 0 0 0 85 0
Real estate - commercial 1,137 941 2,515 208 385 4,801 2,329
Real estate - residential 31 101 250 314 221 696 922
Installment 128 124 12 131 78 395 283
Home equity 300 322 163 700 349 1,485 1,745
Other 242 276 237 294 287 1,049 1,158
Covered / formerly covered loans 3,818 1,577 1,585 1,916 4,318 8,896 18,096
----- ----- ----- ----- ----- ----- ------
Total gross charge-offs 6,278 3,962 5,272 5,044 5,768 20,556 25,973
Recoveries
Commercial 386 357 185 44 75 972 1,260
Real estate - construction 91 0 10 29 0 130 0
Real estate - commercial 597 444 179 354 423 1,574 1,194
Real estate - residential 192 87 23 64 29 366 190
Installment 36 59 44 60 45 199 218
Home equity 102 195 129 154 45 580 231
Other 74 52 71 45 111 242 406
Covered / formerly covered loans 3,002 577 1,361 2,452 1,857 7,392 11,074
----- --- ----- ----- ----- ----- ------
Total recoveries 4,480 1,771 2,002 3,202 2,585 11,455 14,573
Total net charge-offs 1,798 2,191 3,270 1,842 3,183 9,101 11,400
----- ----- ----- ----- ----- ----- ------
Ending allowance for loan and lease losses $53,398 $53,332 $52,876 $53,076 $52,858 $53,398 $52,858
======= ======= ======= ======= ======= ======= =======
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial 0.06% 0.05% 0.10% 0.45% 0.02% 0.15% 0.02%
Real estate - construction (0.12)% 0.13% (0.02)% (0.05)% 0.00% (0.02)% 0.00%
Real estate - commercial 0.10% 0.10% 0.48% (0.03)% (0.01)% 0.16% 0.07%
Real estate - residential (0.14)% 0.01% 0.21% 0.24% 0.18% 0.08% 0.19%
Installment 0.94% 0.65% (0.32)% 0.68% 0.28% 0.49% 0.14%
Home equity 0.18% 0.12% 0.03% 0.53% 0.29% 0.21% 0.39%
Other 0.52% 0.74% 0.55% 0.88% 0.63% 0.67% 0.66%
Covered / formerly covered loans 1.40% 1.60% 0.33% (0.74)% 3.06% 0.58% 1.88%
---- ---- ---- ------ ---- ---- ----
Total net charge-offs 0.14% 0.17% 0.27% 0.16% 0.27% 0.18% 0.28%
==== ==== ==== ==== ==== ==== ====
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial $8,231 $7,191 $6,683 $6,926 $5,817 $8,231 $5,817
Real estate - construction 0 79 223 223 223 0 223
Real estate - commercial 9,059 17,228 21,186 29,925 27,752 9,059 27,752
Real estate - residential 5,027 4,940 5,257 6,100 7,241 5,027 7,241
Installment 127 321 305 278 443 127 443
Home equity 2,787 2,702 2,735 2,462 3,064 2,787 3,064
Lease financing 122 0 0 0 0 122 0
Covered / formerly covered loans 2,644 3,252 3,284 3,239 3,929 2,644 3,929
----- ----- ----- ----- -----
Nonaccrual loans 27,997 35,713 39,673 49,153 48,469 27,997 48,469
Accruing troubled debt restructurings (TDRs) 28,876 20,226 20,084 15,429 15,928 28,876 15,928
------ ------ ------ ------ ------ ------ ------
Total nonperforming loans 56,873 55,939 59,757 64,582 64,397 56,873 64,397
Other real estate owned (OREO) 13,254 15,187 16,401 20,906 22,674 13,254 22,674
------ ------ ------ ------ ------ ------ ------
Total nonperforming assets 70,127 71,126 76,158 85,488 87,071 70,127 87,071
Accruing loans past due 90 days or more 108 58 70 85 216 108 216
--- --- --- --- --- --- ---
Total underperforming assets $70,235 $71,184 $76,228 $85,573 $87,287 $70,235 $87,287
======= ======= ======= ======= ======= ======= =======
Classified assets $106,468 $95,597 $106,280 $109,090 $109,122 $106,468 $109,122
Covered / formerly covered classified assets 25,963 33,110 33,651 44,727 45,682 25,963 45,682
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Total classified assets $132,431 $128,707 $139,931 $153,817 $154,804 $132,431 $154,804
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CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans 190.73% 149.33% 133.28% 107.98% 109.06% 190.73% 109.06%
Nonperforming loans 93.89% 95.34% 88.49% 82.18% 82.08% 93.89% 82.08%
Total ending loans 0.99% 1.02% 1.09% 1.11% 1.11% 0.99% 1.11%
Allowance and loan marks, net of indemnification asset, to total loans 1.11% 1.17% 1.27% 1.43% 1.51% 1.11% 1.51%
Nonperforming loans to total loans 1.06% 1.07% 1.23% 1.36% 1.35% 1.06% 1.35%
Nonperforming assets to
Ending loans, plus OREO 1.30% 1.36% 1.56% 1.79% 1.81% 1.30% 1.81%
Total assets 0.86% 0.90% 1.03% 1.18% 1.21% 0.86% 1.21%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO 0.76% 0.97% 1.15% 1.46% 1.48% 0.76% 1.48%
Total assets 0.51% 0.65% 0.76% 0.97% 0.99% 0.51% 0.99%
(1) Nonaccrual loans include nonaccrual TDRs of $9.3 million, $13.6 million, $14.1 million, $20.3 million, and $12.3 million, as of December 31, 2015, September 30, 2015, June 30. 2015, March 31, 2015, and December 31, 2014, respectively.
FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Twelve months ended,
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Dec. 31, Dec. 31,
2015 2015 2015 2015 2014 2015 2014
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PER COMMON SHARE
Market Price
High $20.72 $19.69 $18.55 $18.30 $19.00 $20.72 $19.00
Low $17.83 $17.55 $16.68 $16.52 $15.34 $16.52 $15.34
Close $18.07 $19.08 $17.94 $17.81 $18.59 $18.07 $18.59
Average shares outstanding - basic 60,985,096 61,135,749 61,115,802 61,013,489 60,905,095 61,062,657 58,662,836
Average shares outstanding - diluted 61,861,182 61,987,795 61,915,294 61,731,844 61,627,518 61,847,547 59,392,667
Ending shares outstanding 61,641,680 61,713,633 61,707,847 61,686,887 61,456,547 61,641,680 61,456,547
Total shareholders' equity $809,376 $813,012 $802,383 $795,742 $784,077 $809,376 $784,077
REGULATORY CAPITAL (1) Preliminary Preliminary
Common equity tier 1 capital $648,748 $638,574 $697,139 $686,191 $673,851 $648,748 $673,851
Common equity tier 1 capital ratio 10.28% 10.51% 12.34% 12.29% 12.69% 10.28% 12.69%
Tier 1 capital $648,852 $638,678 $697,243 $686,295 $673,955 $648,852 $673,955
Tier 1 ratio 10.29% 10.52% 12.35% 12.29% 12.69% 10.29% 12.69%
Total capital $822,431 $812,029 $751,818 $740,967 $728,284 $822,431 $728,284
Total capital ratio 13.04% 13.37% 13.31% 13.27% 13.71% 13.04% 13.71%
Total capital in excess of minimum
requirement $317,780 $326,117 $300,006 $294,290 $303,358 $317,780 $303,358
Total risk-weighted assets $6,308,139 $6,073,899 $5,647,658 $5,583,461 $5,311,573 $6,308,139 $5,311,573
Leverage ratio 8.33% 8.58% 9.77% 9.67% 9.44% 8.33% 9.44%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets 9.93% 10.32% 10.87% 10.98% 10.86% 9.93% 10.86%
Ending tangible shareholders' equity to ending tangible assets 7.53% 7.84% 9.08% 9.16% 9.02% 7.53% 9.02%
Average shareholders' equity to average assets 10.29% 10.67% 11.05% 10.95% 10.77% 10.73% 10.75%
Average tangible shareholders' equity to average tangible assets 7.83% 8.12% 9.23% 9.11% 8.94% 8.13% 8.79%
REPURCHASE PROGRAM (2)
Shares repurchased 91,032 148,935 0 0 0 239,967 40,255
Average share repurchase price $18.85 $18.68 N/A N/A N/A $18.75 $17.32
Total cost of shares repurchased $1,716 $2,783 N/A N/A N/A $4,499 $697
(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-fourth-quarter-2015-financial-results-300208009.html
SOURCE First Financial Bancorp
