UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2015
FIRST FINANCIAL BANCORP.
(Exact name of registrant as specified in its charter)
|
| | |
Ohio | | 31-1042001 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. employer identification number) |
Commission file number: 001-34762
255 East Fifth Street, Suite 700, Cincinnati, Ohio 45202
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (877) 322-9530
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2015, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the first six months and second quarter of 2015. A copy of the earnings press release is attached as Exhibit 99.1.
The earnings press release includes some financial measures outside of generally accepted accounting principles (GAAP), referred to as non-GAAP financial measures. The first non-GAAP financial measure, Net interest margin (fully tax equivalent), appears in the table entitled “Consolidated Financial Highlights” under the section “Key Financial Ratios.” It also appears in the table entitled “Consolidated Quarterly Statements of Income” under “Additional Data.” The second non-GAAP financial measure, Net interest income-tax equivalent, appears in the tables entitled “Additional Data” at the bottom of the “Consolidated Quarterly Statements of Income” page. 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.
Below is a table showing “net interest income” calculated and presented in accordance with GAAP and the adjustments made to arrive at the non-GAAP financial measure “net interest income - tax equivalent.” The table also shows “net interest margin” calculated and presented in accordance with GAAP and the method used to arrive at the non-GAAP financial measure “net interest margin (fully tax equivalent).”
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| | | | | | | | | | | | | | | | | | | | | | |
| Three months ended | | Six months ended |
| June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | | June 30, |
(Dollars in thousands) | 2015 | 2015 | 2014 | 2014 | 2014 | | 2015 | 2014 |
Net interest income | $ | 58,674 |
| $ | 58,586 |
| $ | 61,139 |
| $ | 58,363 |
| $ | 54,304 |
| | $ | 117,260 |
| $ | 109,123 |
|
Tax equivalent adjustment | 988 |
| 983 |
| 946 |
| 818 |
| 758 |
| | 1,971 |
| 1,460 |
|
Net interest income - tax equivalent | $ | 59,662 |
| $ | 59,569 |
| $ | 62,085 |
| $ | 59,181 |
| $ | 55,062 |
| | $ | 119,231 |
| $ | 110,583 |
|
| | | | | | | | |
Average earning assets | $ | 6,616,960 |
| $ | 6,576,660 |
| $ | 6,617,104 |
| $ | 6,326,315 |
| $ | 5,880,933 |
| | $ | 6,596,921 |
| $ | 5,851,197 |
|
| | | | | | | | |
Net interest margin* | 3.56 | % | 3.61 | % | 3.67 | % | 3.66 | % | 3.70 | % | | 3.58 | % | 3.76 | % |
Net interest margin (fully tax equivalent)* | 3.62 | % | 3.67 | % | 3.72 | % | 3.71 | % | 3.76 | % | | 3.64 | % | 3.81 | % |
| | | | | | | | |
* Margins are calculated using net interest income annualized divided by average earning assets. | | | |
The earnings press release shows a non-GAAP ratio in the "Credit Quality" page of allowance for loan and leases losses (allowance) plus loan marks, net of the indemnification asset to total loans. The following table provides a reconciliation of this ratio to the corresponding GAAP components.
|
| | | | | | | | | |
| Three months ended |
| June 30, | Mar. 31, | Dec. 31, |
(Dollars in thousands) | 2015 | 2015 | 2014 |
Allowance | $ | 52,876 |
| $ | 53,076 |
| $ | 52,858 |
|
Loan marks | 29,428 |
| 35,804 |
| 42,434 |
|
Allowance and loan marks | 82,304 |
| 88,880 |
| 95,292 |
|
Indemnification asset | (20,338 | ) | (20,397 | ) | (22,666 | ) |
Allowance and loan marks, net of indemnification asset (a) | $ | 61,966 |
| $ | 68,483 |
| $ | 72,626 |
|
| | | |
Loans | $ | 4,852,774 |
| $ | 4,763,537 |
| $ | 4,777,235 |
|
Loan marks | 29,428 |
| 35,804 |
| 42,434 |
|
Total loans (b) | $ | 4,882,202 |
| $ | 4,799,341 |
| $ | 4,819,669 |
|
| | | |
Allowance and loan marks, net of indemnification asset, to total loans (a)/(b) | 1.27 | % | 1.43 | % | 1.51 | % |
The earnings press release also includes some non-GAAP ratios in the “Consolidated Financial Highlights” page. These ratios are: (1) Return on average tangible shareholders' equity; (2) Ending tangible shareholders' equity as a percent of ending tangible assets; (3) Ending tangible shareholders' equity as a percent of risk-weighted assets; (4) Average tangible shareholders' equity as a percent of average tangible assets; and (5) Tangible book value per share. The Ending tangible shareholders' equity as a percent of ending tangible assets and Average tangible shareholders' equity as a percent of average tangible assets are also shown in the “Regulatory Capital” section of the “Capital Adequacy” page in the earnings release. The following table provides a reconciliation of these ratios to the corresponding GAAP components. The Company considers these critical metrics with which to analyze banks. The ratios have been included in the earnings press release to facilitate a better understanding of the Company's capital structure and financial condition.
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| | | | | | | | | | | | | | | | | | | | | | |
| Three months ended | | Six months ended |
| June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | | June 30, |
| 2015 | 2015 | 2014 | 2014 | 2014 | | 2015 | 2014 |
| (Dollars in thousands, except per share data) | | | |
Net income (a) | $ | 18,949 |
| $ | 17,621 |
| $ | 18,599 |
| $ | 15,344 |
| $ | 15,953 |
| | $ | 36,570 |
| $ | 31,057 |
|
| | | | | | | | |
Average total shareholders' equity | $ | 800,598 |
| $ | 788,511 |
| $ | 780,131 |
| $ | 745,729 |
| $ | 696,609 |
| | $ | 794,588 |
| $ | 690,504 |
|
Less: | | | | | | | | |
Goodwill | (137,739 | ) | (137,739 | ) | (137,739 | ) | (137,458 | ) | (95,050 | ) | | (137,739 | ) | (95,050 | ) |
Intangible assets | (7,726 | ) | (7,847 | ) | (8,114 | ) | (8,542 | ) | (5,344 | ) | | (7,726 | ) | (5,344 | ) |
Average tangible equity (b) | 655,133 |
| 642,925 |
| 634,278 |
| 599,729 |
| 596,215 |
| | 649,123 |
| 590,110 |
|
| | | | | | | | |
Total shareholders' equity | 802,383 |
| 795,742 |
| 784,077 |
| 773,912 |
| 705,831 |
| | 802,383 |
| 705,831 |
|
Less: | | | | | | | | |
Goodwill | (137,739 | ) | (137,739 | ) | (137,739 | ) | (137,458 | ) | (95,050 | ) | | (137,739 | ) | (95,050 | ) |
Intangible assets | (7,726 | ) | (7,847 | ) | (8,114 | ) | (8,542 | ) | (5,344 | ) | | (7,726 | ) | (5,344 | ) |
Ending tangible equity (c) | 656,918 |
| 650,156 |
| 638,224 |
| 627,912 |
| 605,437 |
| | 656,918 |
| 605,437 |
|
| | | | | | | | |
Total assets | 7,383,372 |
| 7,245,796 |
| 7,217,821 |
| 7,353,469 |
| 6,545,744 |
| | 7,383,372 |
| 6,545,744 |
|
Less: | | | | | | | | |
Goodwill | (137,739 | ) | (137,739 | ) | (137,739 | ) | (137,458 | ) | (95,050 | ) | | (137,739 | ) | (95,050 | ) |
Intangible assets | (7,726 | ) | (7,847 | ) | (8,114 | ) | (8,542 | ) | (5,344 | ) | | (7,726 | ) | (5,344 | ) |
Ending tangible assets (d) | 7,237,907 |
| 7,100,210 |
| 7,071,968 |
| 7,207,469 |
| 6,445,350 |
| | 7,237,907 |
| 6,445,350 |
|
| | | | | | | | |
Risk-weighted assets (e) | 5,647,658 |
| 5,583,461 |
| 5,311,573 |
| 5,202,123 |
| 4,464,578 |
| | 5,647,658 |
| 4,464,578 |
|
| | | | | | | | |
Total average assets | 7,243,886 |
| 7,201,313 |
| 7,241,869 |
| 6,937,283 |
| 6,454,252 |
| | 7,222,717 |
| 6,426,895 |
|
Less: | | | | | | | | |
Goodwill | (137,739 | ) | (137,739 | ) | (137,739 | ) | (137,458 | ) | (95,050 | ) | | (137,739 | ) | (95,050 | ) |
Intangible assets | (7,726 | ) | (7,847 | ) | (8,114 | ) | (8,542 | ) | (5,344 | ) | | (7,726 | ) | (5,344 | ) |
Average tangible assets (f) | 7,098,421 |
| 7,055,727 |
| 7,096,016 |
| 6,791,283 |
| 6,353,858 |
| | 7,077,252 |
| 6,326,501 |
|
| | | | | | | | |
Ending common shares outstanding (g) | 61,707,847 |
| 61,686,887 |
| 61,456,547 |
| 61,368,473 |
| 57,718,317 |
| | 61,707,847 |
| 57,718,317 |
|
| | | | | | | | |
Ratios | | | | | | | | |
Return on average tangible shareholders' equity (a)/(b) | 11.60 | % | 11.12 | % | 11.63 | % | 10.15 | % | 10.73 | % | | 11.36 | % | 10.61 | % |
Ending tangible shareholders' equity as a percent of: | | | | | | | |
Ending tangible assets (c)/(d) | 9.08 | % | 9.16 | % | 9.02 | % | 8.71 | % | 9.39 | % | | 9.08 | % | 9.39 | % |
Risk-weighted assets (c)/(e) | 11.63 | % | 11.64 | % | 12.02 | % | 12.07 | % | 13.56 | % | | 11.63 | % | 13.56 | % |
Average tangible shareholders' equity of average tangible assets (b)/(f) | 9.23 | % | 9.11 | % | 8.94 | % | 8.83 | % | 9.38 | % | | 9.17 | % | 9.33 | % |
Tangible book value per share (c)/(g) | $ | 10.65 |
| $ | 10.54 |
| $ | 10.38 |
| $ | 10.23 |
| $ | 10.49 |
| | $ | 10.65 |
| $ | 10.49 |
|
First Financial Bancorp also provided electronic presentation slides on its web site used in connection with the earnings conference call. A copy of the electronic presentation slides is included in this Report as Exhibit 99.2.
The information in Item 2.02 of this Current Report on Form 8-K, including the Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Exhibits.
(d) Exhibits:
The following exhibits shall not be deemed to be “filed” for purposes of the Securities Act.
99.1 First Financial Bancorp. Press Release dated July 30, 2015 - Furnished.
99.2 First Financial Bancorp. July 31, 2015 Earnings Call slides - Furnished.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FIRST FINANCIAL BANCORP.
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| | |
| | By: /s/ John M. Gavigan |
| | John M. Gavigan |
| | Senior Vice President and Chief Financial Officer |
| | |
Date: | July 30, 2015 | |
Form 8-K First Financial Bancorp.
Exhibit Index
Exhibit No. Description
99.1 First Financial Bancorp. Press Release dated July 30, 2015.
99.2 First Financial Bancorp. July 31, 2015 Earnings Call slides.
EXHIBIT 99.1
First Financial Bancorp Reports Second Quarter 2015 Financial Results
Oak Street Acquisition Expected to be Immediately Accretive
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• | Net Income of $18.9 million |
| |
• | Earnings per Share of $0.31 |
| |
• | Return on Average Assets of 1.05% |
| |
• | Return on Average Tangible Common Equity of 11.60% |
Cincinnati, Ohio - July 30, 2015 - First Financial Bancorp (Nasdaq: FFBC) (“First Financial” or the “Company”) announced today financial and operational results for the second quarter 2015. For the three months ended June 30, 2015, the Company recorded net income of $18.9 million, or $0.31 per diluted common share, compared to net income of $17.6 million, or $0.29 per diluted common share, in the first quarter of 2015 and $16.0 million, or $0.28 per diluted common share, in the second quarter of 2014.
Additionally, the Company announced that its board of directors has authorized a quarterly dividend of $0.16 per common share for the next regularly scheduled dividend, payable on October 1, 2015 to shareholders of record as of August 28, 2015.
The Company announced its pending acquisition of Indianapolis, Indiana based Oak Street Holdings Corporation ("Oak Street") for $110 million in cash on July 23, 2015. A specialty lender providing commission-based financing to insurance agencies, Oak Street had total loans of $238 million as of June 30, 2015. The acquisition of Oak Street is expected to close within 30 days and is expected to deliver operating earnings accretion of $0.16 - $0.20 per diluted common share and net interest margin expansion of more than 20 basis points in its first full year of operation as a subsidiary of First Financial Bank.
Claude Davis, Chief Executive Officer, commented, “I am very pleased with our second quarter results. Our net income was 8% higher than the first quarter and 19% higher than the second quarter last year. Although net interest margin continues to be constrained by the prolonged low interest rate environment we are excited about the growth opportunities throughout our footprint. We are especially encouraged by the growth of our loan portfolio which increased by 7.5%, on an annualized basis, during the second quarter."
“Demand for construction lending is especially strong in our markets. We have funded approximately $48 million of the $156 million committed for new projects so far this year and expect to continue to see opportunities to finance high quality projects."
"Likewise, we are very excited about our recently announced acquisition of Oak Street and expect it to be immediately accretive to operating earnings. The team at Oak Street has developed a very successful, high growth specialty lending platform that will be a nice strategic complement to our commercial and nationwide franchise lending businesses.”
"Our ability to successfully grow low-cost deposits continues to provide competitive advantage as we compete for new business and will be especially advantageous to us with the addition and expansion of Oak Street's high-yielding loan portfolio."
"As we look forward to the rest of 2015 and beyond, our focus remains centered on 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 second quarter was $58.7 million as compared to $58.6 million for the first quarter 2015 and $54.3 million for the second quarter 2014. Compared to the linked quarter, total interest income decreased $0.2 million, or 0.3%, while total interest expense decreased $0.3 million, or 4.6%. Net interest margin was 3.62%, on a fully tax equivalent basis, for the second quarter compared to 3.67% for the first quarter 2015 and 3.76% for the second quarter 2014.
Interest income earned on loans increased $0.1 million compared to the prior quarter, as average loan balances increased $22.1 million during the period, which included one additional day. The effective yield earned on the loan portfolio declined by 6 bps to 4.45% as the Company continued to originate predominately floating-rate loans which have a lower initial yield than comparable fixed-rate loans.
Interest income earned on investment securities decreased by $0.3 million compared to the prior quarter while average balances increased $20.2 million. The effective yield earned on the investment portfolio decreased 13 bps to 2.34% as the Company continued to implement strategies in preparation for a rising interest rate environment and realized elevated prepayment activity during the quarter.
The decrease in total interest expense was due primarily to a $103.8 million decrease in average borrowed funds and a $39.4 million increase in average non-interest bearing deposits, partially offset by an $84.7 million increase in average interest-bearing deposits. The effective cost of borrowed funds increased by 2 bps to 37 bps and the cost of interest-bearing deposits decreased 3 bps to 42 bps.
NON-INTEREST INCOME
The Company's non-interest income was $21.4 million for the second quarter of 2015 compared to $17.6 million for the first quarter of 2015 and $16.3 million for the second quarter of 2014. The increase over the linked quarter was primarily related to a $2.0 million increase in accelerated discount related to covered / formerly covered loans, a $1.1 million increase in gain on sale of investment securities, a $0.7 million increase in FDIC loss sharing income and a $0.5 million increase in gain on sale of mortgage loans. The increase in non-interest income related to covered / formerly covered loans was partially offset by a related $1.0 million increase in provision expense.
NON-INTEREST EXPENSE
The Company's non-interest expense was $48.8 million for the second quarter of 2015 compared to $48.1 million for the first quarter of 2015 and $47.1 million for the second quarter of 2014. The $0.7 million increase over the linked quarter was primarily related to a $0.5 million increase in salaries & benefits and a $0.8 million increase in other expenses, partially offset by a $0.6 million decrease in occupancy related expenses. Non-interest expenses for the quarter included $0.3 million related to a legal settlement.
BALANCE SHEET & CAPITAL
Total assets were $7.4 billion, total loans were $4.9 billion and investment securities were $1.8 billion as of June 30, 2015. Total assets increased by $137.6 million, or 7.6% annualized, from the prior quarter and by $837.6 million, or 12.8%, over the prior year. Total loans increased by $89.2 million, or 7.5% annualized, from the prior quarter and by $824.5 million, or 20.5%, over the prior year. Investment securities increased by $16.0 million, or 3.6% annualized, from the prior quarter and decreased by $43.7 million, or 2.4%, over the prior year.
Total deposits were $5.7 billion as of June 30, 2015, essentially unchanged from the prior quarter and $840.7 million, or 17.2%, higher than a year ago. Borrowed funds were $757.1 million as of June 30, 2015, compared to $639.2 million as of March 31, 2015 and $874.0 million as of June 30, 2014.
As of June 30, 2015, the Company had total shareholders' equity of $802.4 million, an increase of $6.6 million, or 3.3% annualized, over the prior quarter and $96.6 million, or 13.7%, over the prior year.
The Company's regulatory capital ratios remain strong and, as of June 30, 2015, were as follows: leverage ratio of 9.77%, total capital ratio of 13.31%, tier 1 capital ratio of 12.35% and tangible common equity ratio of 9.08%. The Company's tangible book value per share was $10.65 as of June 30, 2015.
ASSET QUALITY
Second quarter provision expense was $3.1 million and the total allowance for loan and lease losses as of June 30, 2015 was $52.9 million. The allowance as a percentage of period-end loans was 1.09% at the end of the second quarter. The balance of the Company's total allowance and loan marks, net of the indemnification asset, was 1.27% of total loans and leases as of June 30, 2015 which represents a 16 bps decline from 1.43% as of March 31, 2015 as the decrease in loan marks was coupled with the recognition of a higher level of accelerated discount due to payoffs in the covered / formerly covered portfolio, as well as higher loan balances during the period.
For the second quarter, net charge-offs totaled $3.3 million, an increase of $1.4 million, or 77.5% compared to the linked quarter, and were 27 bps as a percentage of loans on an annualized basis. The increase in net charge-offs was due primarily to a single non-owner occupied commercial real estate charge-off of $1.7 million during the period related to a debt restructuring. Nonaccrual loans decreased $9.5 million, or 19.3%, to $39.7 million as of June 30, 2015. Total classified assets decreased $13.9 million, or 9.0%, to $139.9 million as of June 30, 2015, primarily due to a decrease in both commercial real estate and retail classified assets.
Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, July 31, 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 10069484. 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 June 30, 2015, the Company had $7.4 billion in assets, $4.9 billion in loans, $5.7 billion in deposits and $802 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 June 30, 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.
Contact Information
Investors/Analysts Media
Eric Stables Adam Kiefaber
Investor Relations Media Relations
(513) 458-6454 (513) 979-5735
eric.stables@bankatfirst.com adam.kiefaber@bankatfirst.com
Selected Financial Information
June 30, 2015
(unaudited)
|
| |
Contents | Page |
Consolidated Financial Highlights | 2 |
Consolidated Quarterly Statements of Income | 3 |
Consolidated Statements of Condition | 4 |
Average Consolidated Statements of Condition | 5 |
Net Interest Margin Rate / Volume Analysis | 6 |
Credit Quality | 7 |
Capital Adequacy | 8 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
FIRST FINANCIAL BANCORP. |
CONSOLIDATED FINANCIAL HIGHLIGHTS |
(Dollars in thousands, except per share data) |
(Unaudited) |
| | | | | | | | | | | | | |
| Three Months Ended, | | Six months ended, |
| Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | June 30, |
| 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | 2015 | | 2014 |
RESULTS OF OPERATIONS | | | | | | | | | | | | | |
Net income | $ | 18,949 |
| | $ | 17,621 |
| | $ | 18,599 |
| | $ | 15,344 |
| | $ | 15,953 |
| | $ | 36,570 |
| | $ | 31,057 |
|
Net earnings per share - basic | $ | 0.31 |
| | $ | 0.29 |
| | $ | 0.31 |
| | $ | 0.26 |
| | $ | 0.28 |
| | $ | 0.60 |
| | $ | 0.54 |
|
Net earnings per share - diluted | $ | 0.31 |
| | $ | 0.29 |
| | $ | 0.30 |
| | $ | 0.26 |
| | $ | 0.28 |
| | $ | 0.59 |
| | $ | 0.54 |
|
Dividends declared per share | $ | 0.16 |
| | $ | 0.16 |
| | $ | 0.16 |
| | $ | 0.32 |
| | $ | 0.15 |
| | $ | 0.32 |
| | $ | 0.30 |
|
| | | | | | | | | | | | | |
KEY FINANCIAL RATIOS | | | | | | | | | | | | | |
Return on average assets | 1.05 | % | | 0.99 | % | | 1.02 | % | | 0.88 | % | | 0.99 | % | | 1.02 | % | | 0.97 | % |
Return on average shareholders' equity | 9.49 | % | | 9.06 | % | | 9.46 | % | | 8.16 | % | | 9.19 | % | | 9.28 | % | | 9.07 | % |
Return on average tangible shareholders' equity | 11.60 | % | | 11.12 | % | | 11.63 | % | | 10.15 | % | | 10.73 | % | | 11.36 | % | | 10.61 | % |
| | | | | | | | | | | | | |
Net interest margin | 3.56 | % | | 3.61 | % | | 3.67 | % | | 3.66 | % | | 3.70 | % | | 3.58 | % | | 3.76 | % |
Net interest margin (fully tax equivalent) (1) | 3.62 | % | | 3.67 | % | | 3.72 | % | | 3.71 | % | | 3.76 | % | | 3.64 | % | | 3.81 | % |
| | | | | | | | | | | | | |
Ending shareholders' equity as a percent of ending assets | 10.87 | % | | 10.98 | % | | 10.86 | % | | 10.52 | % | | 10.78 | % | | 10.87 | % | | 10.78 | % |
Ending tangible shareholders' equity as a percent of: | | | | | | | | | | | | | |
Ending tangible assets | 9.08 | % | | 9.16 | % | | 9.02 | % | | 8.71 | % | | 9.39 | % | | 9.08 | % | | 9.39 | % |
Risk-weighted assets | 11.63 | % | | 11.64 | % | | 12.02 | % | | 12.07 | % | | 13.56 | % | | 11.63 | % | | 13.56 | % |
| | | | | | | | | | | | | |
Average shareholders' equity as a percent of average assets | 11.05 | % | | 10.95 | % | | 10.77 | % | | 10.75 | % | | 10.79 | % | | 11.00 | % | | 10.74 | % |
Average tangible shareholders' equity as a percent of | | | | | | | | | | | | | |
average tangible assets | 9.23 | % | | 9.11 | % | | 8.94 | % | | 8.83 | % | | 9.38 | % | | 9.17 | % | | 9.33 | % |
| | | | | | | | | | | | | |
Book value per share | $ | 13.00 |
| | $ | 12.90 |
| | $ | 12.76 |
| | $ | 12.61 |
| | $ | 12.23 |
| | $ | 13.00 |
| | $ | 12.23 |
|
Tangible book value per share | $ | 10.65 |
| | $ | 10.54 |
| | $ | 10.38 |
| | $ | 10.23 |
| | $ | 10.49 |
| | $ | 10.65 |
| | $ | 10.49 |
|
| | | | | | | | | | | | | |
Common equity tier 1 ratio (2) | 12.34 | % | | 12.29 | % | | 12.69 | % | | 12.74 | % | | 14.34 | % | | 12.34 | % | | 14.34 | % |
Tier 1 ratio (2) | 12.35 | % | | 12.29 | % | | 12.69 | % | | 12.74 | % | | 14.34 | % | | 12.35 | % | | 14.34 | % |
Total capital ratio (2) | 13.31 | % | | 13.27 | % | | 13.71 | % | | 13.80 | % | | 15.59 | % | | 13.31 | % | | 15.59 | % |
Leverage ratio (2) | 9.77 | % | | 9.67 | % | | 9.44 | % | | 9.70 | % | | 9.99 | % | | 9.77 | % | | 9.99 | % |
| | | | | | | | | | | | | |
AVERAGE BALANCE SHEET ITEMS | | | | | | | | | | | | | |
Loans (3) | $ | 4,793,471 |
| | $ | 4,770,671 |
| | $ | 4,758,374 |
| | $ | 4,403,591 |
| | $ | 4,025,074 |
| | 4,782,134 |
| | 3,996,117 |
|
FDIC indemnification asset | 20,744 |
| | 22,112 |
| | 24,172 |
| | 28,050 |
| | 33,987 |
| | 21,424 |
| | 38,866 |
|
Investment securities | 1,782,785 |
| | 1,762,622 |
| | 1,811,941 |
| | 1,865,241 |
| | 1,811,175 |
| | 1,772,759 |
| | 1,809,383 |
|
Interest-bearing deposits with other banks | 19,960 |
| | 21,255 |
| | 22,617 |
| | 29,433 |
| | 10,697 |
| | 20,604 |
| | 6,831 |
|
Total earning assets | $ | 6,616,960 |
| | $ | 6,576,660 |
| | $ | 6,617,104 |
| | $ | 6,326,315 |
| | $ | 5,880,933 |
| | $ | 6,596,921 |
| | $ | 5,851,197 |
|
Total assets | $ | 7,243,886 |
| | $ | 7,201,313 |
| | $ | 7,241,869 |
| | $ | 6,937,283 |
| | $ | 6,454,252 |
| | $ | 7,222,717 |
| | $ | 6,426,895 |
|
Noninterest-bearing deposits | $ | 1,325,485 |
| | $ | 1,286,067 |
| | $ | 1,290,754 |
| | $ | 1,179,207 |
| | $ | 1,110,697 |
| | $ | 1,305,885 |
| | $ | 1,103,642 |
|
Interest-bearing deposits | 4,446,248 |
| | 4,361,525 |
| | 4,372,529 |
| | 4,041,255 |
| | 3,832,295 |
| | 4,404,121 |
| | 3,764,115 |
|
Total deposits | $ | 5,771,733 |
| | $ | 5,647,592 |
| | $ | 5,663,283 |
| | $ | 5,220,462 |
| | $ | 4,942,992 |
| | $ | 5,710,006 |
| | $ | 4,867,757 |
|
Borrowings | $ | 587,225 |
| | $ | 691,012 |
| | $ | 733,726 |
| | $ | 896,328 |
| | $ | 745,990 |
| | $ | 638,832 |
| | $ | 793,968 |
|
Shareholders' equity | $ | 800,598 |
| | $ | 788,511 |
| | $ | 780,131 |
| | $ | 745,729 |
| | $ | 696,609 |
| | $ | 794,588 |
| | $ | 690,504 |
|
| | | | | | | | | | | | | |
CREDIT QUALITY RATIOS (4) | | | | | | | | | | | | |
Allowance to ending loans | 1.09% |
| | 1.11% |
| | 1.11 | % | | 0.95 | % | | 1.15 | % | | 1.09 | % | | 1.15 | % |
Allowance to nonaccrual loans | 133.28 | % | | 107.98 | % | | 109.06 | % | | 101.94 | % | | 129.64 | % | | 133.28 | % | | 129.64 | % |
Allowance to nonperforming loans | 88.49 | % | | 82.18 | % | | 82.08 | % | | 77.17 | % | | 93.34 | % | | 88.49 | % | | 93.34 | % |
Nonperforming loans to total loans | 1.23 | % | | 1.36 | % | | 1.35 | % | | 1.24 | % | | 1.23 | % | | 1.23 | % | | 1.23 | % |
Nonperforming assets to ending loans, plus OREO | 1.56 | % | | 1.79 | % | | 1.81 | % | | 1.49 | % | | 1.59 | % | | 1.56 | % | | 1.59 | % |
Nonperforming assets to total assets | 1.03 | % | | 1.18 | % | | 1.21 | % | | 0.90 | % | | 0.89 | % | | 1.03 | % | | 0.89 | % |
Net charge-offs to average loans (annualized) | 0.27 | % | | 0.16 | % | | 0.27 | % | | 0.07 | % | | 0.11 | % | | 0.22 | % | | 0.17 | % |
(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) June 30, 2015 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.
(4) Includes covered and previously covered assets for the three months ended June 30, 2015, March 31, 2015, and December 31, 2014 as FDIC loss sharing coverage expired for the majority of these assets effective October 1, 2014.
|
| | | | | | | | | | | | | | | | | | | | | |
FIRST FINANCIAL BANCORP. |
CONSOLIDATED STATEMENTS OF INCOME |
(Dollars in thousands, except per share data) |
(Unaudited) |
| | | |
| Three months ended, | | Six months ended, |
| Jun. 30, | | Jun. 30, |
| 2015 | | 2014 | | % Change | | 2015 | | 2014 | | % Change |
Interest income | | | | | | | | | | | |
Loans, including fees | $ | 54,586 |
| | $ | 48,877 |
| | 11.7 | % | | $ | 109,050 |
| | $ | 98,024 |
| | 11.2 | % |
Investment securities |
| | | | | | | | | | |
Taxable | 9,281 |
| | 10,355 |
| | (10.4 | )% | | 18,889 |
| | 20,792 |
| | (9.2 | )% |
Tax-exempt | 1,139 |
| | 796 |
| | 43.1 | % | | 2,256 |
| | 1,606 |
| | 40.5 | % |
Total investment securities interest | 10,420 |
| | 11,151 |
| | (6.6 | )% | | 21,145 |
| | 22,398 |
| | (5.6 | )% |
Other earning assets | (1,162 | ) | | (1,301 | ) | | (10.7 | )% | | (2,343 | ) | | (2,707 | ) | | (13.4 | )% |
Total interest income | 63,844 |
| | 58,727 |
| | 8.7 | % | | 127,852 |
| | 117,715 |
| | 8.6 | % |
| | | | | | | | | | | |
Interest expense | | | | | | | | | | | |
Deposits | 4,621 |
| | 3,606 |
| | 28.1 | % | | 9,441 |
| | 6,922 |
| | 36.4 | % |
Short-term borrowings | 253 |
| | 292 |
| | (13.4 | )% | | 556 |
| | 621 |
| | (10.5 | )% |
Long-term borrowings | 296 |
| | 525 |
| | (43.6 | )% | | 595 |
| | 1,049 |
| | (43.3 | )% |
Total interest expense | 5,170 |
| | 4,423 |
| | 16.9 | % | | 10,592 |
| | 8,592 |
| | 23.3 | % |
Net interest income | 58,674 |
| | 54,304 |
| | 8.0 | % | | 117,260 |
| | 109,123 |
| | 7.5 | % |
Provision for loan and lease losses | 3,070 |
| | (384 | ) | | (899.5 | )% | | 5,130 |
| | (1,417 | ) | | (462.0 | )% |
Net interest income after provision for loan and lease losses | 55,604 |
| | 54,688 |
| | 1.7 | % | | 112,130 |
| | 110,540 |
| | 1.4 | % |
| | | | | | | | | | | |
Noninterest income | | | | | | | | | | | |
Service charges on deposit accounts | 4,803 |
| | 5,137 |
| | (6.5 | )% | | 9,326 |
| | 9,909 |
| | (5.9 | )% |
Trust and wealth management fees | 3,274 |
| | 3,305 |
| | (0.9 | )% | | 6,908 |
| | 7,051 |
| | (2.0 | )% |
Bankcard income | 2,972 |
| | 2,809 |
| | 5.8 | % | | 5,592 |
| | 5,242 |
| | 6.7 | % |
Net gains from sales of loans | 1,924 |
| | 737 |
| | 161.1 | % | | 3,388 |
| | 1,133 |
| | 199.0 | % |
Gain on sale of investment securities | 1,094 |
| | 0 |
| | 100.0 | % | | 1,094 |
| | 50 |
| | 2,088.0 | % |
FDIC loss sharing income | (304 | ) | | 1,108 |
| | 127.4 | % | | (1,350 | ) | | 600 |
| | (325.0 | )% |
Accelerated discount on covered/formerly covered loans | 4,094 |
| | 621 |
| | 559.3 | % | | 6,186 |
| | 1,636 |
| | 278.1 | % |
Other | 3,558 |
| | 2,620 |
| | 35.8 | % | | 7,884 |
| | 4,891 |
| | 61.2 | % |
Total noninterest income | 21,415 |
| | 16,337 |
| | 31.1 | % | | 39,028 |
| | 30,512 |
| | 27.9 | % |
| | | | | | | | | | | |
Noninterest expenses | | | | | | | | | | | |
Salaries and employee benefits | 27,451 |
| | 25,615 |
| | 7.2 | % | | 54,392 |
| | 50,876 |
| | 6.9 | % |
Net occupancy | 4,380 |
| | 4,505 |
| | (2.8 | )% | | 9,385 |
| | 9,804 |
| | (4.3 | )% |
Furniture and equipment | 2,219 |
| | 1,983 |
| | 11.9 | % | | 4,372 |
| | 4,060 |
| | 7.7 | % |
Data processing | 2,657 |
| | 2,770 |
| | (4.1 | )% | | 5,429 |
| | 5,628 |
| | (3.5 | )% |
Marketing | 973 |
| | 830 |
| | 17.2 | % | | 1,861 |
| | 1,616 |
| | 15.2 | % |
Communication | 558 |
| | 562 |
| | (0.7 | )% | | 1,128 |
| | 1,185 |
| | (4.8 | )% |
Professional services | 1,727 |
| | 1,449 |
| | 19.2 | % | | 3,697 |
| | 3,173 |
| | 16.5 | % |
State intangible tax | 577 |
| | 644 |
| | (10.4 | )% | | 1,154 |
| | 1,288 |
| | (10.4 | )% |
FDIC assessments | 1,114 |
| | 1,074 |
| | 3.7 | % | | 2,204 |
| | 2,208 |
| | (0.2 | )% |
Loss (gain) - other real estate owned | 419 |
| | 711 |
| | (41.1 | )% | | 893 |
| | 1,162 |
| | (23.1 | )% |
Loss sharing expense | 576 |
| | 1,465 |
| | (60.7 | )% | | 877 |
| | 3,034 |
| | (71.1 | )% |
Other | 6,135 |
| | 5,503 |
| | 11.5 | % | | 11,462 |
| | 10,919 |
| | 5.0 | % |
Total noninterest expenses | 48,786 |
| | 47,111 |
| | 3.6 | % | | 96,854 |
| | 94,953 |
| | 2.0 | % |
Income before income taxes | 28,233 |
| | 23,914 |
| | 18.1 | % | | 54,304 |
| | 46,099 |
| | 17.8 | % |
Income tax expense | 9,284 |
| | 7,961 |
| | 16.6 | % | | 17,734 |
| | 15,042 |
| | 17.9 | % |
Net income | $ | 18,949 |
| | $ | 15,953 |
| | 18.8 | % | | $ | 36,570 |
| | $ | 31,057 |
| | 17.8 | % |
| | | | | | | | | | | |
ADDITIONAL DATA | | | | | | | | | | | |
Net earnings per share - basic | $ | 0.31 |
| | $ | 0.28 |
| | | | $ | 0.60 |
| | $ | 0.54 |
| | |
Net earnings per share - diluted | $ | 0.31 |
| | $ | 0.28 |
| | | | $ | 0.59 |
| | $ | 0.54 |
| | |
Dividends declared per share | $ | 0.16 |
| | $ | 0.15 |
| | | | $ | 0.32 |
| | $ | 0.30 |
| | |
| | | | | | | | | | | |
Return on average assets | 1.05 | % | | 0.99 | % | | | | 1.02 | % | | 0.97 | % | | |
Return on average shareholders' equity | 9.49 | % | | 9.19 | % | | | | 9.28 | % | | 9.07 | % | | |
| | | | | | | | | | | |
Interest income | $ | 63,844 |
| | $ | 58,727 |
| | 8.7 | % | | $ | 127,852 |
| | $ | 117,715 |
| | 8.6 | % |
Tax equivalent adjustment | 988 |
| | 758 |
| | 30.3 | % | | 1,971 |
| | 1,460 |
| | 35.0 | % |
Interest income - tax equivalent | 64,832 |
| | 59,485 |
| | 9.0 | % | | 129,823 |
| | 119,175 |
| | 8.9 | % |
Interest expense | 5,170 |
| | 4,423 |
| | 16.9 | % | | 10,592 |
| | 8,592 |
| | 23.3 | % |
Net interest income - tax equivalent | $ | 59,662 |
| | $ | 55,062 |
| | 8.4 | % | | $ | 119,231 |
| | $ | 110,583 |
| | 7.8 | % |
| | | | | | | | | | | |
Net interest margin | 3.56 | % | | 3.70 | % | | | | 3.58 | % | | 3.76 | % | | |
Net interest margin (fully tax equivalent) (1) | 3.62 | % | | 3.76 | % | | | | 3.64 | % | | 3.81 | % | | |
| | | | | | | | | | | |
Full-time equivalent employees | 1,366 |
| | 1,296 |
| | | | | | | | |
| | | | | | | | | | | |
(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) |
| | | | | | | |
| 2015 |
| Second | | First | | | | % Change |
| Quarter | | Quarter | | YTD | | Linked Qtr. |
Interest income | | | | | | | |
Loans, including fees | $ | 54,586 |
| | $ | 54,464 |
| | $ | 109,050 |
| | 0.2 | % |
Investment securities | | | | | | | |
Taxable | 9,281 |
| | 9,608 |
| | 18,889 |
| | (3.4 | )% |
Tax-exempt | 1,139 |
| | 1,117 |
| | 2,256 |
| | 2.0 | % |
Total investment securities interest | 10,420 |
| | 10,725 |
| | 21,145 |
| | (2.8 | )% |
Other earning assets | (1,162 | ) | | (1,181 | ) | | (2,343 | ) | | (1.6 | )% |
Total interest income | 63,844 |
| | 64,008 |
| | 127,852 |
| | (0.3 | )% |
| | | | | | | |
Interest expense | | | | | | | |
Deposits | 4,621 |
| | 4,820 |
| | 9,441 |
| | (4.1 | )% |
Short-term borrowings | 253 |
| | 303 |
| | 556 |
| | (16.5 | )% |
Long-term borrowings | 296 |
| | 299 |
| | 595 |
| | (1.0 | )% |
Total interest expense | 5,170 |
| | 5,422 |
| | 10,592 |
| | (4.6 | )% |
Net interest income | 58,674 |
| | 58,586 |
| | 117,260 |
| | 0.2 | % |
Provision for loan and lease losses | 3,070 |
| | 2,060 |
| | 5,130 |
| | 49.0 | % |
Net interest income after provision for loan and lease losses | 55,604 |
| | 56,526 |
| | 112,130 |
| | (1.6 | )% |
| | | | | | | |
Noninterest income | | | | | | | |
Service charges on deposit accounts | 4,803 |
| | 4,523 |
| | 9,326 |
| | 6.2 | % |
Trust and wealth management fees | 3,274 |
| | 3,634 |
| | 6,908 |
| | (9.9 | )% |
Bankcard income | 2,972 |
| | 2,620 |
| | 5,592 |
| | 13.4 | % |
Net gains from sales of loans | 1,924 |
| | 1,464 |
| | 3,388 |
| | 31.4 | % |
Gain on sale of investment securities | 1,094 |
| | 0 |
| | 1,094 |
| | 100.0 | % |
FDIC loss sharing income | (304 | ) | | (1,046 | ) | | (1,350 | ) | | (70.9 | )% |
Accelerated discount on covered/formerly covered loans | 4,094 |
| | 2,092 |
| | 6,186 |
| | 95.7 | % |
Other | 3,558 |
| | 4,326 |
| | 7,884 |
| | (17.8 | )% |
Total noninterest income | 21,415 |
| | 17,613 |
| | 39,028 |
| | 21.6 | % |
| | | | | | | |
Noninterest expenses | | | | | | | |
Salaries and employee benefits | 27,451 |
| | 26,941 |
| | 54,392 |
| | 1.9 | % |
Net occupancy | 4,380 |
| | 5,005 |
| | 9,385 |
| | (12.5 | )% |
Furniture and equipment | 2,219 |
| | 2,153 |
| | 4,372 |
| | 3.1 | % |
Data processing | 2,657 |
| | 2,772 |
| | 5,429 |
| | (4.1 | )% |
Marketing | 973 |
| | 888 |
| | 1,861 |
| | 9.6 | % |
Communication | 558 |
| | 570 |
| | 1,128 |
| | (2.1 | )% |
Professional services | 1,727 |
| | 1,970 |
| | 3,697 |
| | (12.3 | )% |
State intangible tax | 577 |
| | 577 |
| | 1,154 |
| | 0.0 | % |
FDIC assessments | 1,114 |
| | 1,090 |
| | 2,204 |
| | 2.2 | % |
Loss (gain) - other real estate owned | 419 |
| | 474 |
| | 893 |
| | (11.6 | )% |
Loss sharing expense | 576 |
| | 301 |
| | 877 |
| | 91.4 | % |
Other | 6,135 |
| | 5,327 |
| | 11,462 |
| | 15.2 | % |
Total noninterest expenses | 48,786 |
| | 48,068 |
| | 96,854 |
| | 1.5 | % |
Income before income taxes | 28,233 |
| | 26,071 |
| | 54,304 |
| | 8.3 | % |
Income tax expense | 9,284 |
| | 8,450 |
| | 17,734 |
| | 9.9 | % |
Net income | $ | 18,949 |
| | $ | 17,621 |
| | $ | 36,570 |
| | 7.5 | % |
| | | | | | | |
ADDITIONAL DATA | | | | | | | |
Net earnings per share - basic | $ | 0.31 |
| | $ | 0.29 |
| | 0.60 |
| | |
Net earnings per share - diluted | $ | 0.31 |
| | $ | 0.29 |
| | 0.59 |
| | |
Dividends declared per share | $ | 0.16 |
| | $ | 0.16 |
| | $ | 0.32 |
| | |
| | | | | | | |
Return on average assets | 1.05 | % | | 0.99 | % | | 1.02 | % | | |
Return on average shareholders' equity | 9.49 | % | | 9.06 | % | | 9.28 | % | | |
| | | | | | | |
Interest income | $ | 63,844 |
| | $ | 64,008 |
| | $ | 127,852 |
| | (0.3 | )% |
Tax equivalent adjustment | 988 |
| | 983 |
| | 1,971 |
| | 0.5 | % |
Interest income - tax equivalent | 64,832 |
| | 64,991 |
| | 129,823 |
| | (0.2 | )% |
Interest expense | 5,170 |
| | 5,422 |
| | 10,592 |
| | (4.6 | )% |
Net interest income - tax equivalent | $ | 59,662 |
| | $ | 59,569 |
| | $ | 119,231 |
| | 0.2 | % |
| | | | | | | |
Net interest margin | 3.56 | % | | 3.61 | % | | 3.58 | % | | |
Net interest margin (fully tax equivalent) (1) | 3.62 | % | | 3.67 | % | | 3.64 | % | | |
| | | | | | | |
Full-time equivalent employees | 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 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 | | 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 loan and lease losses | 59,087 |
| | 57,470 |
| | 54,688 |
| | 55,852 |
| | 227,097 |
|
| | | | | | | | |
|
|
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 |
|
Gain on sale of investment securities | 20 |
| | 0 |
| | 0 |
| | 50 |
| | 70 |
|
FDIC loss sharing income | (43 | ) | | (192 | ) | | 1,108 |
| | (508 | ) | | 365 |
|
Accelerated discount on covered/formerly covered loans | 1,759 |
| | 789 |
| | 621 |
| | 1,015 |
| | 4,184 |
|
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 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) |
| | | | | | | | | | | | | |
| Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | % Change | | % Change |
| 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | Linked Qtr. | | Comparable Qtr. |
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | $ | 116,318 |
| | $ | 111,011 |
| | $ | 110,122 |
| | $ | 121,360 |
| | $ | 123,160 |
| | 4.8 | % | | (5.6 | )% |
Interest-bearing deposits with other banks | 41,027 |
| | 25,350 |
| | 22,630 |
| | 22,365 |
| | 39,237 |
| | 61.8 | % | | 4.6 | % |
Investment securities available-for-sale | 955,764 |
| | 892,169 |
| | 840,468 |
| | 929,594 |
| | 897,715 |
| | 7.1 | % | | 6.5 | % |
Investment securities held-to-maturity | 791,839 |
| | 839,666 |
| | 867,996 |
| | 900,521 |
| | 899,502 |
| | (5.7 | )% | | (12.0 | )% |
Other investments | 53,585 |
| | 53,393 |
| | 52,626 |
| | 49,986 |
| | 47,640 |
| | 0.4 | % | | 12.5 | % |
Loans held for sale | 21,151 |
| | 14,937 |
| | 11,005 |
| | 16,816 |
| | 13,108 |
| | 41.6 | % | | 61.4 | % |
Loans | | | | | | | | | | | | | |
Commercial | 1,315,087 |
| | 1,298,874 |
| | 1,315,114 |
| | 1,328,526 |
| | 1,171,181 |
| | 1.2 | % | | 12.3 | % |
Real estate - construction | 229,256 |
| | 227,969 |
| | 197,571 |
| | 195,524 |
| | 115,703 |
| | 0.6 | % | | 98.1 | % |
Real estate - commercial | 2,171,806 |
| | 2,120,084 |
| | 2,140,667 |
| | 2,135,968 |
| | 1,700,069 |
| | 2.4 | % | | 27.7 | % |
Real estate - residential | 506,391 |
| | 496,852 |
| | 501,894 |
| | 498,873 |
| | 447,561 |
| | 1.9 | % | | 13.1 | % |
Installment | 43,073 |
| | 43,798 |
| | 47,320 |
| | 51,131 |
| | 47,753 |
| | (1.7 | )% | | (9.8 | )% |
Home equity | 463,222 |
| | 456,278 |
| | 458,627 |
| | 460,957 |
| | 426,846 |
| | 1.5 | % | | 8.5 | % |
Credit card | 39,216 |
| | 37,886 |
| | 38,475 |
| | 38,042 |
| | 37,937 |
| | 3.5 | % | | 3.4 | % |
Lease financing | 84,723 |
| | 81,796 |
| | 77,567 |
| | 73,216 |
| | 81,212 |
| | 3.6 | % | | 4.3 | % |
Total loans | 4,852,774 |
| | 4,763,537 |
| | 4,777,235 |
| | 4,782,237 |
| | 4,028,262 |
| | 1.9 | % | | 20.5 | % |
Less | | | | | | | | | | | | | |
Allowance for loan and lease losses | 52,876 |
| | 53,076 |
| | 52,858 |
| | 53,989 |
| | 54,452 |
| | (0.4 | )% | | (2.9 | )% |
Net loans | 4,799,898 |
| | 4,710,461 |
| | 4,724,377 |
| | 4,728,248 |
| | 3,973,810 |
| | 1.9 | % | | 20.8 | % |
Premises and equipment | 139,170 |
| | 140,477 |
| | 141,381 |
| | 141,851 |
| | 133,418 |
| | (0.9 | )% | | 4.3 | % |
Goodwill | 137,739 |
| | 137,739 |
| | 137,739 |
| | 137,458 |
| | 95,050 |
| | 0.0 | % | | 44.9 | % |
Other intangibles | 7,726 |
| | 7,847 |
| | 8,114 |
| | 8,542 |
| | 5,344 |
| | (1.5 | )% | | 44.6 | % |
FDIC indemnification asset | 20,338 |
| | 20,397 |
| | 22,666 |
| | 24,160 |
| | 30,420 |
| | (0.3 | )% | | (33.1 | )% |
Accrued interest and other assets | 298,817 |
| | 292,349 |
| | 278,697 |
| | 272,568 |
| | 287,340 |
| | 2.2 | % | | 4.0 | % |
Total Assets | $ | 7,383,372 |
| | $ | 7,245,796 |
| | $ | 7,217,821 |
| | $ | 7,353,469 |
| | $ | 6,545,744 |
| | 1.9 | % | | 12.8 | % |
| | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
Interest-bearing demand | $ | 1,175,219 |
| | $ | 1,214,882 |
| | $ | 1,225,378 |
| | $ | 1,214,726 |
| | $ | 1,105,031 |
| | (3.3 | )% | | 6.4 | % |
Savings | 1,947,566 |
| | 1,922,815 |
| | 1,889,473 |
| | 1,827,590 |
| | 1,656,798 |
| | 1.3 | % | | 17.5 | % |
Time | 1,262,881 |
| | 1,277,291 |
| | 1,255,364 |
| | 1,247,334 |
| | 973,100 |
| | (1.1 | )% | | 29.8 | % |
Total interest-bearing deposits | 4,385,666 |
| | 4,414,988 |
| | 4,370,215 |
| | 4,289,650 |
| | 3,734,929 |
| | (0.7 | )% | | 17.4 | % |
Noninterest-bearing | 1,330,149 |
| | 1,299,602 |
| | 1,285,527 |
| | 1,243,367 |
| | 1,140,198 |
| | 2.4 | % | | 16.7 | % |
Total deposits | 5,715,815 |
| | 5,714,590 |
| | 5,655,742 |
| | 5,533,017 |
| | 4,875,127 |
| | 0.0 | % | | 17.2 | % |
Federal funds purchased and securities sold | | | | | | | | | | | | | |
under agreements to repurchase | 68,349 |
| | 68,142 |
| | 103,192 |
| | 113,303 |
| | 128,013 |
| | 0.3 | % | | (46.6 | )% |
FHLB short-term borrowings | 641,700 |
| | 523,500 |
| | 558,200 |
| | 806,000 |
| | 686,300 |
| | 22.6 | % | | (6.5 | )% |
Total short-term borrowings | 710,049 |
| | 591,642 |
| | 661,392 |
| | 919,303 |
| | 814,313 |
| | 20.0 | % | | (12.8 | )% |
Long-term debt | 47,084 |
| | 47,598 |
| | 48,241 |
| | 52,656 |
| | 59,693 |
| | (1.1 | )% | | (21.1 | )% |
Total borrowed funds | 757,133 |
| | 639,240 |
| | 709,633 |
| | 971,959 |
| | 874,006 |
| | 18.4 | % | | (13.4 | )% |
Accrued interest and other liabilities | 108,041 |
| | 96,224 |
| | 68,369 |
| | 74,581 |
| | 90,780 |
| | 12.3 | % | | 19.0 | % |
Total Liabilities | 6,580,989 |
| | 6,450,054 |
| | 6,433,744 |
| | 6,579,557 |
| | 5,839,913 |
| | 2.0 | % | | 12.7 | % |
| | | | | | | | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | | | | | | | |
Common stock | 571,501 |
| | 570,623 |
| | 574,643 |
| | 574,209 |
| | 574,206 |
| | 0.2 | % | | (0.5 | )% |
Retained earnings | 369,462 |
| | 360,390 |
| | 352,893 |
| | 344,118 |
| | 337,971 |
| | 2.5 | % | | 9.3 | % |
Accumulated other comprehensive loss | (20,715 | ) | | (17,054 | ) | | (21,409 | ) | | (20,888 | ) | | (21,569 | ) | | 21.5 | % | | (4.0 | )% |
Treasury stock, at cost | (117,865 | ) | | (118,217 | ) | | (122,050 | ) | | (123,527 | ) | | (184,777 | ) | | (0.3 | )% | | (36.2 | )% |
Total Shareholders' Equity | 802,383 |
| | 795,742 |
| | 784,077 |
| | 773,912 |
| | 705,831 |
| | 0.8 | % | | 13.7 | % |
Total Liabilities and Shareholders' Equity | $ | 7,383,372 |
| | $ | 7,245,796 |
| | $ | 7,217,821 |
| | $ | 7,353,469 |
| | $ | 6,545,744 |
| | 1.9 | % | | 12.8 | % |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
FIRST FINANCIAL BANCORP. |
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION |
(Dollars in thousands) |
(Unaudited) |
| | | | | |
| Quarterly Averages | | Year-to-Date Averages |
| Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | June 30, |
| 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | 2015 | | 2014 |
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | $ | 114,024 |
| | $ | 112,841 |
| | $ | 124,216 |
| | $ | 125,528 |
| | $ | 118,947 |
| | $ | 113,436 |
| | $ | 121,252 |
|
Federal funds sold | 0 |
| | 0 |
| | 0 |
| | 8,795 |
| | 0 |
| | 0 |
| | 0 |
|
Interest-bearing deposits with other banks | 19,960 |
| | 21,255 |
| | 22,617 |
| | 20,638 |
| | 10,697 |
| | 20,604 |
| | 6,831 |
|
Investment securities | 1,782,785 |
| | 1,762,622 |
| | 1,811,941 |
| | 1,865,241 |
| | 1,811,175 |
| | 1,772,759 |
| | 1,809,383 |
|
Loans held for sale | 9,292 |
| | 8,606 |
| | 11,774 |
| | 15,357 |
| | 8,464 |
| | 8,951 |
| | 6,704 |
|
Loans |
| |
| | | | | | | | | | |
Commercial | 1,318,408 |
| | 1,300,869 |
| | 1,282,752 |
| | 1,221,637 |
| | 1,147,876 |
| | 1,309,687 |
| | 1,124,520 |
|
Real estate - construction | 226,314 |
| | 215,380 |
| | 192,626 |
| | 154,515 |
| | 103,033 |
| | 220,877 |
| | 97,333 |
|
Real estate - commercial | 2,117,450 |
| | 2,129,434 |
| | 2,158,336 |
| | 1,927,003 |
| | 1,733,739 |
| | 2,123,409 |
| | 1,738,829 |
|
Real estate - residential | 497,350 |
| | 496,451 |
| | 493,895 |
| | 475,510 |
| | 441,383 |
| | 496,903 |
| | 438,008 |
|
Installment | 43,393 |
| | 45,376 |
| | 49,356 |
| | 49,958 |
| | 48,538 |
| | 44,379 |
| | 49,786 |
|
Home equity | 459,414 |
| | 458,083 |
| | 456,494 |
| | 444,745 |
| | 423,937 |
| | 458,752 |
| | 423,300 |
|
Credit card | 39,272 |
| | 38,409 |
| | 38,966 |
| | 38,381 |
| | 37,649 |
| | 38,843 |
| | 37,360 |
|
Lease financing | 82,578 |
| | 78,063 |
| | 74,175 |
| | 76,485 |
| | 80,455 |
| | 80,333 |
| | 80,277 |
|
Total loans | 4,784,179 |
| | 4,762,065 |
| | 4,746,600 |
| | 4,388,234 |
| | 4,016,610 |
| | 4,773,183 |
| | 3,989,413 |
|
Less | | | | | | | | | | | | | |
Allowance for loan and lease losses | 54,662 |
| | 53,648 |
| | 54,656 |
| | 55,697 |
| | 55,149 |
| | 54,158 |
| | 58,507 |
|
Net loans | 4,729,517 |
| | 4,708,417 |
| | 4,691,944 |
| | 4,332,537 |
| | 3,961,461 |
| | 4,719,025 |
| | 3,930,906 |
|
Premises and equipment | 140,117 |
| | 141,153 |
| | 141,871 |
| | 136,956 |
| | 134,522 |
| | 140,632 |
| | 135,567 |
|
Goodwill | 137,739 |
| | 137,739 |
| | 137,551 |
| | 118,756 |
| | 95,050 |
| | 137,739 |
| | 95,050 |
|
Other intangibles | 7,761 |
| | 7,950 |
| | 8,321 |
| | 7,138 |
| | 5,445 |
| | 7,855 |
| | 5,583 |
|
FDIC indemnification asset | 20,744 |
| | 22,112 |
| | 24,172 |
| | 28,050 |
| | 33,987 |
| | 21,424 |
| | 38,866 |
|
Accrued interest and other assets | 281,947 |
| | 278,618 |
| | 267,462 |
| | 278,287 |
| | 274,504 |
| | 280,292 |
| | 276,753 |
|
Total Assets | $ | 7,243,886 |
| | $ | 7,201,313 |
| | $ | 7,241,869 |
| | $ | 6,937,283 |
| | $ | 6,454,252 |
| | $ | 7,222,717 |
| | $ | 6,426,895 |
|
| | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
Interest-bearing demand | $ | 1,220,391 |
| | $ | 1,176,263 |
| | $ | 1,217,852 |
| | $ | 1,135,126 |
| | $ | 1,169,350 |
| | $ | 1,198,449 |
| | $ | 1,138,767 |
|
Savings | 1,950,127 |
| | 1,914,723 |
| | 1,904,568 |
| | 1,782,472 |
| | 1,702,521 |
| | 1,932,523 |
| | 1,668,405 |
|
Time | 1,275,730 |
| | 1,270,539 |
| | 1,250,109 |
| | 1,123,657 |
| | 960,424 |
| | 1,273,149 |
| | 956,943 |
|
Total interest-bearing deposits | 4,446,248 |
| | 4,361,525 |
| | 4,372,529 |
| | 4,041,255 |
| | 3,832,295 |
| | 4,404,121 |
| | 3,764,115 |
|
Noninterest-bearing | 1,325,485 |
| | 1,286,067 |
| | 1,290,754 |
| | 1,179,207 |
| | 1,110,697 |
| | 1,305,885 |
| | 1,103,642 |
|
Total deposits | 5,771,733 |
| | 5,647,592 |
| | 5,663,283 |
| | 5,220,462 |
| | 4,942,992 |
| | 5,710,006 |
| | 4,867,757 |
|
Federal funds purchased and securities sold | | | | | | | | | | | | | |
under agreements to repurchase | 67,664 |
| | 77,269 |
| | 119,712 |
| | 125,094 |
| | 123,682 |
| | 72,440 |
| | 117,144 |
|
FHLB short-term borrowings | 472,295 |
| | 565,918 |
| | 564,062 |
| | 710,879 |
| | 562,466 |
| | 518,848 |
| | 616,721 |
|
Total short-term borrowings | 539,959 |
| | 643,187 |
| | 683,774 |
| | 835,973 |
| | 686,148 |
| | 591,288 |
| | 733,865 |
|
Long-term debt | 47,266 |
| | 47,825 |
| | 49,952 |
| | 60,355 |
| | 59,842 |
| | 47,544 |
| | 60,103 |
|
Total borrowed funds | 587,225 |
| | 691,012 |
| | 733,726 |
| | 896,328 |
| | 745,990 |
| | 638,832 |
| | 793,968 |
|
Accrued interest and other liabilities | 84,330 |
| | 74,198 |
| | 64,729 |
| | 74,764 |
| | 68,661 |
| | 79,291 |
| | 74,666 |
|
Total Liabilities | 6,443,288 |
| | 6,412,802 |
| | 6,461,738 |
| | 6,191,554 |
| | 5,757,643 |
| | 6,428,129 |
| | 5,736,391 |
|
| | | | | | | | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | | | | | | | |
Common stock | 571,078 |
| | 573,932 |
| | 574,588 |
| | 574,190 |
| | 573,716 |
| | 572,497 |
| | 574,766 |
|
Retained earnings | 365,847 |
| | 355,848 |
| | 347,435 |
| | 340,680 |
| | 332,944 |
| | 360,875 |
| | 328,932 |
|
Accumulated other comprehensive loss | (18,242 | ) | | (20,163 | ) | | (18,841 | ) | | (20,969 | ) | | (25,189 | ) | | (19,197 | ) | | (27,209 | ) |
Treasury stock, at cost | (118,085 | ) | | (121,106 | ) | | (123,051 | ) | | (148,172 | ) | | (184,862 | ) | | (119,587 | ) | | (185,985 | ) |
Total Shareholders' Equity | 800,598 |
| | 788,511 |
| | 780,131 |
| | 745,729 |
| | 696,609 |
| | 794,588 |
| | 690,504 |
|
Total Liabilities and Shareholders' Equity | $ | 7,243,886 |
| | $ | 7,201,313 |
| | $ | 7,241,869 |
| | $ | 6,937,283 |
| | $ | 6,454,252 |
| | $ | 7,222,717 |
| | $ | 6,426,895 |
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FIRST FINANCIAL BANCORP. |
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) |
(Dollars in thousands) |
(Unaudited) |
| | | | |
| | Quarterly Averages | | Year-to-Date Averages |
| | June 30, 2015 | | March 31, 2015 | | June 30, 2014 | | June 30, 2015 | | June 30, 2014 |
| | Balance | | Yield | | Balance | | Yield | | Balance | | Yield | | Balance | | Yield | | Balance | | Yield |
Earning assets | | | | | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | | | | | |
Investment securities | | $ | 1,782,785 |
| | 2.34 | % | | $ | 1,762,622 |
| | 2.47 | % | | $ | 1,811,175 |
| | 2.47 | % | | $ | 1,772,759 |
| | 2.41 | % | | $ | 1,809,383 |
| | 2.50 | % |
Interest-bearing deposits with other banks | | 19,960 |
| | 0.26 | % | | 21,255 |
| | 0.27 | % | | 10,697 |
| | 0.45 | % | | 20,604 |
| | 0.26 | % | | 6,831 |
| | 0.65 | % |
Gross loans (2) | | 4,814,215 |
| | 4.45 | % | | 4,792,783 |
| | 4.51 | % | | 4,059,061 |
| | 4.70 | % | | 4,803,558 |
| | 4.48 | % | | 4,034,983 |
| | 4.76 | % |
Total earning assets | | 6,616,960 |
| | 3.87 | % | | 6,576,660 |
| | 3.95 | % | | 5,880,933 |
| | 4.01 | % | | 6,596,921 |
| | 3.91 | % | | 5,851,197 |
| | 4.06 | % |
| | | | | | | | | | | | | | | | | | | | |
Nonearning assets | | | | | | | | | | | | | | | | | | | | |
Allowance for loan and lease losses | | (54,662 | ) | | | | (53,648 | ) | | | | (55,149 | ) | | | | (54,158 | ) | | | | (58,507 | ) | | |
Cash and due from banks | | 114,024 |
| | | | 112,841 |
| | | | 118,947 |
| | | | 113,436 |
| | | | 121,252 |
| | |
Accrued interest and other assets | | 567,564 |
| | | | 565,460 |
| | | | 509,521 |
| | | | 566,518 |
| | | | 512,953 |
| | |
Total assets | | $ | 7,243,886 |
| | | | $ | 7,201,313 |
| | | | $ | 6,454,252 |
| | | | $ | 7,222,717 |
| | | | $ | 6,426,895 |
| | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand | | $ | 1,220,391 |
| | 0.08 | % | | $ | 1,176,263 |
| | 0.08 | % | | $ | 1,169,350 |
| | 0.11 | % | | $ | 1,198,449 |
| | 0.08 | % | | $ | 1,138,767 |
| | 0.11 | % |
Savings | | 1,950,127 |
| | 0.19 | % | | 1,914,723 |
| | 0.27 | % | | 1,702,521 |
| | 0.23 | % | | 1,932,523 |
| | 0.23 | % | | 1,668,405 |
| | 0.21 | % |
Time | | 1,275,730 |
| | 1.08 | % | | 1,270,539 |
| | 1.07 | % | | 960,424 |
| | 0.98 | % | | 1,273,149 |
| | 1.08 | % | | 956,943 |
| | 0.96 | % |
Total interest-bearing deposits | | 4,446,248 |
| | 0.42 | % | | 4,361,525 |
| | 0.45 | % | | 3,832,295 |
| | 0.38 | % | | 4,404,121 |
| | 0.43 | % | | 3,764,115 |
| | 0.37 | % |
Borrowed funds | | | | | | | | | | | | | | | | | | | | |
Short-term borrowings | | 539,959 |
| | 0.19 | % | | 643,187 |
| | 0.19 | % | | 686,148 |
| | 0.17 | % | | 591,288 |
| | 0.19 | % | | 733,865 |
| | 0.17 | % |
Long-term debt | | 47,266 |
| | 2.51 | % | | 47,825 |
| | 2.54 | % | | 59,842 |
| | 3.52 | % | | 47,544 |
| | 2.52 | % | | 60,103 |
| | 3.52 | % |
Total borrowed funds | | 587,225 |
| | 0.37 | % | | 691,012 |
| | 0.35 | % | | 745,990 |
| | 0.44 | % | | 638,832 |
| | 0.36 | % | | 793,968 |
| | 0.42 | % |
Total interest-bearing liabilities | | 5,033,473 |
| | 0.41 | % | | 5,052,537 |
| | 0.44 | % | | 4,578,285 |
| | 0.39 | % | | 5,042,953 |
| | 0.42 | % | | 4,558,083 |
| | 0.38 | % |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | 1,325,485 |
| | | | 1,286,067 |
| | | | 1,110,697 |
| | | | 1,305,885 |
| | | | 1,103,642 |
| | |
Other liabilities | | 84,330 |
| | | | 74,198 |
| | | | 68,661 |
| | | | 79,291 |
| | | | 74,666 |
| | |
Shareholders' equity | | 800,598 |
| | | | 788,511 |
| | | | 696,609 |
| | | | 794,588 |
| | | | 690,504 |
| | |
Total liabilities & shareholders' equity | | $ | 7,243,886 |
| | | | $ | 7,201,313 |
| | | | $ | 6,454,252 |
| | | | $ | 7,222,717 |
| | | | $ | 6,426,895 |
| | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income (1) | | $ | 58,674 |
| | | | $ | 58,586 |
| | | | $ | 54,304 |
| | | | $ | 117,260 |
| |
| | $ | 109,123 |
| |
|
Net interest spread (1) | | | | 3.46 | % | | | | 3.51 | % | | | | 3.62 | % | | | | 3.49 | % | | | | 3.68 | % |
Net interest margin (1) | | | | 3.56 | % | | | | 3.61 | % | | | | 3.70 | % | | | | 3.58 | % | | | | 3.76 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(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 | | $ | (536 | ) | | $ | 231 |
| | $ | (305 | ) | | $ | (565 | ) | | $ | (166 | ) | | $ | (731 | ) | | $ | (1,646 | ) | | $ | (881 | ) | | $ | (2,527 | ) |
Interest-bearing deposits with other banks | | 0 |
| | (1 | ) | | (1 | ) | | (5 | ) | | 6 |
| | 1 |
| | (26 | ) | | 36 |
| | 10 |
|
Gross loans (2) | | (680 | ) | | 822 |
| | 142 |
| | (2,531 | ) | | 8,378 |
| | 5,847 |
| | (11,462 | ) | | 34,421 |
| | 22,959 |
|
Total earning assets | | (1,216 | ) | | 1,052 |
| | (164 | ) | | (3,101 | ) | | 8,218 |
| | 5,117 |
| | (13,134 | ) | | 33,576 |
| | 20,442 |
|
| | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | $ | (337 | ) | | $ | 138 |
| | $ | (199 | ) | | $ | 377 |
| | $ | 638 |
| | $ | 1,015 |
| | $ | 2,313 |
| | $ | 2,767 |
| | $ | 5,080 |
|
Borrowed funds | | | | | | | | | | | | | | | | | | |
Short-term borrowings | | (5 | ) | | (45 | ) | | (50 | ) | | 29 |
| | (68 | ) | | (39 | ) | | 139 |
| | (270 | ) | | (131 | ) |
Long-term debt | | (3 | ) | | 0 |
| | (3 | ) | | (150 | ) | | (79 | ) | | (229 | ) | | (599 | ) | | (317 | ) | | (916 | ) |
Total borrowed funds | | (8 | ) | | (45 | ) | | (53 | ) | | (121 | ) | | (147 | ) | | (268 | ) | | (460 | ) | | (587 | ) | | (1,047 | ) |
Total interest-bearing liabilities | | (345 | ) | | 93 |
| | (252 | ) | | 256 |
| | 491 |
| | 747 |
| | 1,853 |
| | 2,180 |
| | 4,033 |
|
Net interest income (1) | | $ | (871 | ) | | $ | 959 |
| | $ | 88 |
| | $ | (3,357 | ) | | $ | 7,727 |
| | $ | 4,370 |
| | $ | (14,987 | ) | | $ | 31,396 |
| | $ | 16,409 |
|
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(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) |
| | | | | | | | | | | | | |
| | | | | | | Excludes covered assets* | | Six months ended |
| Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Jun. 30, | | Jun. 30, |
| 2015 (2) | | 2015 (2) | | 2014 (2) | | 2014 | | 2014 | | 2015 (2) | | 2014 (3) |
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY | | | | | | | | | | |
Balance at beginning of period | $ | 53,076 |
| | $ | 52,858 |
| | $ | 53,989 |
| | $ | 42,027 |
| | $ | 43,023 |
| | $ | 52,858 |
| | $ | 43,829 |
|
Provision for loan and lease losses | 3,070 |
| | 2,060 |
| | 2,052 |
| | 1,093 |
| | 29 |
| | 5,130 |
| | 1,188 |
|
Gross charge-offs | | | | | | | | | | | | | |
Commercial | 510 |
| | 1,481 |
| | 130 |
| | 83 |
| | 571 |
| | 1,991 |
| | 1,227 |
|
Real estate - construction | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
|
Real estate - commercial | 2,515 |
| | 208 |
| | 385 |
| | 702 |
| | 699 |
| | 2,723 |
| | 1,242 |
|
Real estate - residential | 250 |
| | 314 |
| | 221 |
| | 161 |
| | 283 |
| | 564 |
| | 540 |
|
Installment | 12 |
| | 131 |
| | 78 |
| | 63 |
| | 14 |
| | 143 |
| | 142 |
|
Home equity | 163 |
| | 700 |
| | 349 |
| | 469 |
| | 383 |
| | 863 |
| | 927 |
|
Other | 237 |
| | 294 |
| | 287 |
| | 338 |
| | 237 |
| | 531 |
| | 533 |
|
Covered / formerly covered loans | 1,585 |
| | 1,916 |
| | 4,318 |
| | * |
| | * |
| | 3,501 |
| | * |
|
Total gross charge-offs | 5,272 |
| | 5,044 |
| | 5,768 |
| | 1,816 |
| | 2,187 |
| | 10,316 |
| | 4,611 |
|
Recoveries | | | | | | | | | | | | | |
Commercial | 185 |
| | 44 |
| | 75 |
| | 566 |
| | 580 |
| | 229 |
| | 619 |
|
Real estate - construction | 10 |
| | 29 |
| | 0 |
| | 0 |
| | 0 |
| | 39 |
| | 0 |
|
Real estate - commercial | 179 |
| | 354 |
| | 423 |
| | 323 |
| | 334 |
| | 533 |
| | 448 |
|
Real estate - residential | 23 |
| | 64 |
| | 29 |
| | 34 |
| | 100 |
| | 87 |
| | 127 |
|
Installment | 44 |
| | 60 |
| | 45 |
| | 46 |
| | 50 |
| | 104 |
| | 127 |
|
Home equity | 129 |
| | 154 |
| | 45 |
| | 46 |
| | 37 |
| | 283 |
| | 140 |
|
Other | 71 |
| | 45 |
| | 111 |
| | 135 |
| | 61 |
| | 116 |
| | 160 |
|
Covered / formerly covered loans | 1,361 |
| | 2,452 |
| | 1,857 |
| | * |
| | * |
| | 3,813 |
| | * |
|
Total recoveries | 2,002 |
| | 3,202 |
| | 2,585 |
| | 1,150 |
| | 1,162 |
| | 5,204 |
| | 1,621 |
|
Total net charge-offs | 3,270 |
| | 1,842 |
| | 3,183 |
| | 666 |
| | 1,025 |
| | 5,112 |
| | 2,990 |
|
Ending allowance for loan and lease losses | $ | 52,876 |
| | $ | 53,076 |
| | $ | 52,858 |
| | $ | 42,454 |
| | $ | 42,027 |
| | $ | 52,876 |
| | $ | 42,027 |
|
| | | | | | | | | | | | | |
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | | | | | | | | | | |
Commercial | 0.10 | % | | 0.45 | % | | 0.02 | % | | (0.16 | )% | | 0.00 | % | | 0.27 | % | | 0.11 | % |
Real estate - construction | (0.02 | )% | | (0.05 | )% | | 0.00 | % | | 0.00 | % | | 0.00 | % | | (0.04 | )% | | 0.00 | % |
Real estate - commercial | 0.48 | % | | (0.03 | )% | | (0.01 | )% | | 0.09 | % | | 0.10 | % | | 0.22 | % | | 0.11 | % |
Real estate - residential | 0.21 | % | | 0.24 | % | | 0.18 | % | | 0.13 | % | | 0.20 | % | | 0.22 | % | | 0.23 | % |
Installment | (0.32 | )% | | 0.68 | % | | 0.28 | % | | 0.15 | % | | (0.33 | )% | | 0.19 | % | | 0.07 | % |
Home equity | 0.03 | % | | 0.53 | % | | 0.29 | % | | 0.42 | % | | 0.37 | % | | 0.28 | % | | 0.42 | % |
Other | 0.55 | % | | 0.88 | % | | 0.63 | % | | 0.72 | % | | 0.61 | % | | 0.71 | % | | 0.65 | % |
Covered/formerly covered loans | 0.33 | % | | (0.74 | )% | | 3.06 | % | | * |
| | * |
| | (0.22 | )% | | * |
|
Total net charge-offs | 0.27 | % | | 0.16 | % | | 0.27 | % | | 0.07 | % | | 0.11 | % | | 0.22 | % | | 0.17 | % |
| | | | | | | | | | | | | |
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | | |
Nonaccrual loans (1) | | | | | | | | | | | | | |
Commercial | $ | 6,683 |
| | $ | 6,926 |
| | $ | 5,817 |
| | $ | 6,486 |
| | $ | 7,077 |
| | $ | 6,683 |
| | $ | 7,077 |
|
Real estate - construction | 223 |
| | 223 |
| | 223 |
| | 223 |
| | 223 |
| | 223 |
| | 223 |
|
Real estate - commercial | 21,186 |
| | 29,925 |
| | 27,752 |
| | 25,262 |
| | 15,288 |
| | 21,186 |
| | 15,288 |
|
Real estate - residential | 5,257 |
| | 6,100 |
| | 7,241 |
| | 6,696 |
| | 6,806 |
| | 5,257 |
| | 6,806 |
|
Installment | 305 |
| | 278 |
| | 443 |
| | 398 |
| | 459 |
| | 305 |
| | 459 |
|
Home equity | 2,735 |
| | 2,462 |
| | 3,064 |
| | 2,581 |
| | 2,565 |
| | 2,735 |
| | 2,565 |
|
Lease financing | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
|
Covered /formerly covered loans | 3,284 |
| | 3,239 |
| | 3,929 |
| | * |
| | * |
| | 3,284 |
| | * |
|
Nonaccrual loans | 39,673 |
| | 49,153 |
| | 48,469 |
| | 41,646 |
| | 32,418 |
| | 39,673 |
| | 32,418 |
|
Accruing troubled debt restructurings (TDRs) | 20,084 |
| | 15,429 |
| | 15,928 |
| | 13,369 |
| | 12,607 |
| | 20,084 |
| | 12,607 |
|
Total nonperforming loans | 59,757 |
| | 64,582 |
| | 64,397 |
| | 55,015 |
| | 45,025 |
| | 59,757 |
| | 45,025 |
|
Other real estate owned (OREO) | 16,401 |
| | 20,906 |
| | 22,674 |
| | 11,316 |
| | 13,370 |
| | 16,401 |
| | 13,370 |
|
Total nonperforming assets | 76,158 |
| | 85,488 |
| | 87,071 |
| | 66,331 |
| | 58,395 |
| | 76,158 |
| | 58,395 |
|
Accruing loans past due 90 days or more | 70 |
| | 85 |
| | 216 |
| | 249 |
| | 256 |
| | 70 |
| | 256 |
|
Total underperforming assets | $ | 76,228 |
| | $ | 85,573 |
| | $ | 87,287 |
| | $ | 66,580 |
| | $ | 58,651 |
|
| $ | 76,228 |
| | $ | 58,651 |
|
Classified assets | $ | 106,280 |
| | $ | 109,090 |
| | $ | 109,122 |
| | $ | 105,914 |
| | $ | 103,799 |
| | $ | 106,280 |
| | $ | 103,799 |
|
Covered/formerly covered classified assets | 33,651 |
| | 44,727 |
| | 45,682 |
| | * |
| | * |
| | 33,651 |
| | * |
|
Total classified assets | $ | 139,931 |
| | $ | 153,817 |
| | $ | 154,804 |
| | $ | 105,914 |
| | $ | 103,799 |
| | $ | 139,931 |
| | $ | 103,799 |
|
| | | | | | | | | | | | | |
CREDIT QUALITY RATIOS | | | | | | | | | | |
Allowance for loan and lease losses to | | | | | | | | | | | | | |
Nonaccrual loans | 133.28 | % | | 107.98 | % | | 109.06 | % | | 101.94 | % | | 129.64 | % | | 133.28 | % | | 129.64 | % |
Nonperforming loans | 88.49% |
| | 82.18% |
| | 82.08 | % | | 77.17 | % | | 93.34 | % | | 88.49 | % | | 93.34 | % |
Total ending loans | 1.09% |
| | 1.11% |
| | 1.11 | % | | 0.95 | % | | 1.15 | % | | 1.09 | % | | 1.15 | % |
Allowance and loan marks, net of indemnification asset, to total loans | 1.27 | % | | 1.43 | % | | 1.51 | % | | * |
| | * |
| | 1.27 | % | | * |
|
Nonperforming loans to total loans | 1.23% |
| | 1.36% |
| | 1.35 | % | | 1.24 | % | | 1.23 | % | | 1.23 | % | | 1.23 | % |
Nonperforming assets to | | | | | | | | | | | | | |
Ending loans, plus OREO | 1.56% |
| | 1.79% |
| | 1.81 | % | | 1.49 | % | | 1.59 | % | | 1.56 | % | | 1.59 | % |
Total assets | 1.03% |
| | 1.18% |
| | 1.21 | % | | 0.90 | % | | 0.89 | % | | 1.03 | % | | 0.89 | % |
Nonperforming assets, excluding accruing TDRs to | | | | | | | | | | | | | |
Ending loans, plus OREO | 1.15% |
| | 1.46% |
| | 1.48 | % | | 1.19 | % | | 1.25 | % | | 1.15 | % | | 1.25 | % |
Total assets | 0.76% |
| | 0.97% |
| | 0.99 | % | | 0.72 | % | | 0.70 | % | | 0.76 | % | | 0.70 | % |
| | | | | | | | | | | | | |
(1) Nonaccrual loans include nonaccrual TDRs of $14.3 million, $20.3 million, $12.3 million, $13.2 million, and $11.0 million, as of June 30. 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, respectively. |
(2) Includes covered and previously covered assets for the three months ended June 30, 2015, March 31, 2015 and December 31, 2014 as FDIC loss sharing coverage expired for the majority of these assets effective October 1, 2014. |
(3) Excludes covered assets. |
* 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. | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
FIRST FINANCIAL BANCORP. |
CAPITAL ADEQUACY |
(Dollars in thousands, except per share data) |
(Unaudited) |
| | | | | | | | | | | Six months ended, |
| Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Jun. 30, | | Jun. 30, |
| 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | 2015 | | 2014 |
PER COMMON SHARE | | | | | | | | | | | | | |
Market Price | | | | | | | | | | | | | |
High | $ | 18.55 |
| | $ | 18.30 |
| | $ | 19.00 |
| | $ | 17.66 |
| | $ | 18.43 |
| | $ | 18.55 |
| | $ | 18.43 |
|
Low | $ | 16.68 |
| | $ | 16.52 |
| | $ | 15.34 |
| | $ | 15.83 |
| | $ | 15.51 |
| | $ | 16.52 |
| | $ | 15.51 |
|
Close | $ | 17.94 |
| | $ | 17.81 |
| | $ | 18.59 |
| | $ | 15.83 |
| | $ | 17.21 |
| | $ | 17.94 |
| | $ | 17.21 |
|
| | | | | | | | | | | | | |
Average shares outstanding - basic | 61,115,802 |
| | 61,013,489 |
| | 60,905,095 |
| | 59,403,109 |
| | 57,201,494 |
| | 61,064,928 |
| | 57,146,853 |
|
Average shares outstanding - diluted | 61,915,294 |
| | 61,731,844 |
| | 61,627,518 |
| | 60,112,932 |
| | 57,951,636 |
| | 61,824,106 |
| | 57,890,268 |
|
Ending shares outstanding | 61,707,847 |
| | 61,686,887 |
| | 61,456,547 |
| | 61,368,473 |
| | 57,718,317 |
| | 61,707,847 |
| | 57,718,317 |
|
| | | | | | | | | | | | | |
Total shareholders' equity | $ | 802,383 |
| | $ | 795,742 |
| | $ | 784,077 |
| | $ | 773,912 |
| | $ | 705,831 |
| | $ | 802,383 |
| | $ | 705,831 |
|
| | | | | | | | | | | | | |
REGULATORY CAPITAL (1) | Preliminary | | | | | | | | | | Preliminary | | |
Common equity tier 1 capital | $ | 697,139 |
| | $ | 686,191 |
| | $ | 673,851 |
| | $ | 662,504 |
| | $ | 640,133 |
| | $ | 697,139 |
| | $ | 640,133 |
|
Common equity tier 1 capital ratio | 12.34 | % | | 12.29 | % | | 12.69 | % | | 12.74 | % | | 14.34 | % | | 12.34 | % | | 14.34 | % |
Tier 1 capital | $ | 697,243 |
| | $ | 686,295 |
| | $ | 673,955 |
| | $ | 662,608 |
| | $ | 640,237 |
| | $ | 697,243 |
| | $ | 640,237 |
|
Tier 1 ratio | 12.35 | % | | 12.29 | % | | 12.69 | % | | 12.74 | % | | 14.34 | % | | 12.35 | % | | 14.34 | % |
Total capital | $ | 751,818 |
| | $ | 740,967 |
| | $ | 728,284 |
| | $ | 717,823 |
| | $ | 696,014 |
| | $ | 751,818 |
| | $ | 696,014 |
|
Total capital ratio | 13.31 | % | | 13.27 | % | | 13.71 | % | | 13.80 | % | | 15.59 | % | | 13.31 | % | | 15.59 | % |
Total capital in excess of minimum | | | | | | | | | | | | | |
requirement | $ | 300,006 |
| | $ | 294,290 |
| | $ | 303,358 |
| | $ | 301,653 |
| | $ | 338,848 |
| | $ | 300,006 |
| | $ | 338,848 |
|
Total risk-weighted assets | $ | 5,647,658 |
| | $ | 5,583,461 |
| | $ | 5,311,573 |
| | $ | 5,202,123 |
| | $ | 4,464,578 |
| | $ | 5,647,658 |
| | $ | 4,464,578 |
|
Leverage ratio | 9.77 | % | | 9.67 | % | | 9.44 | % | | 9.70 | % | | 9.99 | % | | 9.77 | % | | 9.99 | % |
| | | | | | | | | | | | | |
OTHER CAPITAL RATIOS | | | | | | | | | | | | | |
Ending shareholders' equity to ending assets | 10.87 | % | | 10.98 | % | | 10.86 | % | | 10.52 | % | | 10.78 | % | | 10.87 | % | | 10.78 | % |
Ending tangible shareholders' equity to ending tangible assets | 9.08 | % | | 9.16 | % | | 9.02 | % | | 8.71 | % | | 9.39 | % | | 9.08 | % | | 9.39 | % |
Average shareholders' equity to average assets | 11.05 | % | | 10.95 | % | | 10.77 | % | | 10.75 | % | | 10.79 | % | | 11.00 | % | | 10.74 | % |
Average tangible shareholders' equity to average tangible assets | 9.23 | % | | 9.11 | % | | 8.94 | % | | 8.83 | % | | 9.38 | % | | 9.17 | % | | 9.33 | % |
| | | | | | | | | | | | | |
REPURCHASE PROGRAM (2) | | | | | | | | | | | | | |
Shares repurchased | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 40,255 |
|
Average share repurchase price | N/A |
| | N/A |
| | N/A |
| | N/A |
| | N/A |
| | N/A |
| | $ | 17.32 |
|
Total cost of shares repurchased | N/A |
| | N/A |
| | N/A |
| | N/A |
| | N/A |
| | N/A |
| | $ | 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 | | | | | | | | | | | | | |
Oak Street Holdings Corporation Acquisition Overview July 30, 2015 Exhibit 99.2
2 Oak Street Holdings Corporation Overview Nationally Recognized Specialty Lender to Insurance Agents and Agencies Founded: 2003 Headquarters: Indianapolis, Indiana Assets / Loans: $242 million / $238 million Target Lending Industries: Provides commission-based commercial financing exclusively to insurance agents and brokers and third party loan servicing to financial institutions Nation-wide Lending Platform: Geographically well diversified portfolio with loan distribution across 46 states 65% of current loan portfolio originated in TX, CA, WA, FL, GA, CT and OH 29 states with > $1.0 million in outstanding balances Management: Oak Street's long-standing senior leadership team has extensive industry experience and will continue to manage the business following the closing of the transaction Proprietary Technology: Robust and scalable loan origination and servicing platform Collateral: Loans are secured by tendered commission books and cash collateral accounts Tendered commissions are redirected from the insurance carriers directly to Oak Street Cash collateral accounts: $19 million (approximately 8% of loan balances) Approximately 85% of the loan portfolio is secured by commissions related to Property & Casualty policies Carriers: 92% of loan portfolio secured by commissions from carriers rated A-minus or better Source: Company financials as of 6/30/2015.
3 Oak Street Holdings Corporation Overview Nationally Recognized Specialty Lender to Insurance Agents and Agencies Target Loan Size: Up to $20 million “Core” - Lending relationships < $1.0 million “Strategic” - Lending relationships > $1.0 million Average Loan Size: $340,000 Core: $150,000 Strategic: $4.4 million Purpose: Primarily acquisition, refinancing existing debt and/or working capital Weighted Average Remaining Term: 89 months Weighted Average Seasoning: 22 months Weighted Average Gross Portfolio Yield: Approximately 9% (predominately variable rate) Loan Growth: 2010 – 2015 YTD CAGR of 25% Asset Quality: First Financial reviewed 60% of the portfolio as part of its diligence efforts Excellent credit performance 2014 NCOs were 30 bps of average loans outstanding No credit losses for any loans originated since 2011 Source: Company financials as of 6/30/2015.
4 Acquisition Overview and Pro Forma Impact 2016 earnings accretion of $0.16 - $0.20 per share Net interest margin expansion of more than 20 bps related to Oak Street’s portfolio yield of approximately 9% Oak Street warehouse-line funding structure to be replaced with lower-cost Bank funding sources Return on average tangible common equity increase of more than 270 bps Excellent risk-adjusted returns with expected annual net charge offs to total loans of approximately 50 bps Estimated tangible book value dilution of $1.10 per share and earn back between 4 and 5 years Significant growth potential is further enhanced by a proprietary technology platform that is robust and scalable to other asset classes Transaction Overview Pro Forma Financial Impact Transaction Value: $110 million / 100% Cash Estimated Deal Costs: $3.0 million (3Q 2015) Existing Oak Street Management: Rick Dennen, Founder & President, will continue in current position Organizational Structure: Oak Street will become a subsidiary of First Financial Bank Approval: Board of Directors of First Financial and Oak Street have approved transaction Expected Close: Within 30 days Limited Integration Risk: Retention of all staff and operating systems will minimize integration risks
Oak Street Holdings Corporation Acquisition Overview July 30, 2015
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