CINCINNATI, April 22, 2021 /PRNewswire/ --

Earnings per diluted share of $0.48; $0.50 on an adjusted⁽¹⁾ basis
Return on average assets of 1.20%; 1.24% as adjusted⁽¹⁾
Net interest margin FTE⁽¹⁾ of 3.40%
Provision for credit losses of $4.0 million; $7.5 million decline from linked quarter
Repurchased 840,115 shares during the quarter

First Financial Bancorp. (NASDAQ:FFBC) ("First Financial" or the "Company") announced financial results for the three months ended March 31, 2021.

For the three months ended March 31, 2021, the Company reported net income of $47.3 million, or $0.48 per diluted common share. These results compare to net income of $48.3 million, or $0.49 per diluted common share, for the fourth quarter of 2020 and $28.6 million, or $0.29 per diluted common share, for the first quarter of 2020.

Return on average assets for the first quarter of 2021 was 1.20% while return on average tangible common equity was 15.24%. These compare to returns on average assets of 1.20% and 0.79%, and returns on average tangible common equity of 15.50% and 9.71%, in the fourth quarter of 2020 and the first quarter of 2020, respectively.

First quarter 2021 highlights include:

After adjustments⁽¹⁾ for certain nonrecurring items:

Net income of $0.50 per diluted common share
1.24% return on average assets
15.80% return on average tangible common equity

Net interest margin of 3.40% on a fully tax-equivalent basis⁽¹⁾ in line with expectations

9 basis point reduction from linked quarter driven by fewer fees related to loan prepayments, and lower volume of PPP forgiveness

Noninterest income of $40.3 million, or $40.2 million as adjusted⁽¹⁾

Foreign exchange income of $10.8 million remains strong despite decline from record fourth quarter
Mortgage income of $9.5 million in line with expectations given expected seasonal declines and lower premiums

Noninterest expenses of $92.5 million, or $90.0 million as adjusted⁽¹⁾

Adjustments⁽¹⁾ include:

$1.3 million of severance related costs
$1.3 million of other nonrecurring costs such as branch consolidation costs

Efficiency ratio of 60.0%; 58.4% as adjusted⁽¹⁾

Excluding PPP growth, loan balances declined slightly during the quarter driven primarily by a decline in consumer and mortgage loans
Average transactional deposit balances grew $523.7 million compared to the linked quarter; 21.1% on an annualized basis

⁽¹⁾Financial information in this release that is described as "adjusted" or that is presented on a fully tax equivalent basis is non-GAAP. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Total Allowance for Credit Losses of $183.0 million; Total quarterly provision for credit losses of $4.0 million

Loans and leases - ACL of $169.9 million, 1.71% of total loans; 1.84% of loans excluding PPP
Unfunded Commitments - ACL of $13.0 million
First quarter provision expense driven by net charge-offs, partially offset by improvements in economic conditions

Strong capital ratios

Total capital of 15.41%
Tier 1 common equity of 11.81%
Tangible common equity of 8.22%; 8.62% excluding PPP loans
Tangible book value per share of $12.78; $0.15 decrease compared to linked quarter
Repurchased 840,115 shares during first quarter

Archie Brown, President and Chief Executive Officer, remarked, "While uncertainty remains due to the ongoing pandemic, the accelerated COVID-19 vaccine distribution, unprecedented fiscal stimulus, and an accommodative Federal Reserve have led to widespread optimism for our economy, which is in stark contrast to our sentiment at this time last year. Our first quarter operating performance reflects this change in sentiment and we have renewed optimism as a result of the improved business climate, despite an operating environment that presents challenges due to very low interest rates and muted loan demand."

Mr. Brown continued, "Our first quarter financial results once again reflect our earnings power and our consistent ability to deliver value to our shareholders. Our core quarterly financial metrics remained strong with adjusted⁽¹⁾ earnings per share of $0.50, adjusted⁽¹⁾ return on assets of 1.24%, and an adjusted⁽¹⁾ efficiency ratio of 58.4%. Net income was bolstered by lower expenses and significantly lower credit costs. Despite expected seasonal declines, noninterest income was strong due to healthy mortgage demand, robust foreign exchange activity and higher wealth management fees. In addition, adjusted⁽¹⁾ noninterest expenses declined $4.6 million from the linked quarter and resulted in a sub-60% efficiency ratio. As I mentioned, credit costs were low with $4.0 million of provision expense during the quarter, and resulted in an allowance for credit losses of 1.84% of total loans, excluding PPP. Classified assets increased during the quarter, however our overall credit outlook has improved significantly and our borrowers are seeing benefits from the various stimulus actions. While first quarter net charge-offs increased slightly from previous quarters, this was driven by a single customer relationship. Given our overall credit outlook, we expect the allowance for credit losses to continue to decline over the course of 2021."

Mr. Brown commented on balance sheet trends and capital utilization, "Excluding PPP activity, loan balances declined slightly for the quarter due to accelerated mortgage and HELOC payoffs, increased borrower liquidity, and muted business loan demand. As a result of these trends, we anticipate slower growth in the near-term, with some acceleration in the second half of the year. As of March 31, consumers and businesses were holding record levels of deposits, with average balances increasing during the quarter as a result of the stimulus package approved by Congress last December. We anticipate further deposit balance growth in the second quarter after the passage of the most recent stimulus bill. This anticipated growth will likely suppress loan demand and service charge income in the near-term. From a capital standpoint, our ratios remained strong through the first quarter. The combination of our current capital levels and our improved credit outlook, prompted us to repurchase 840,115 shares during the quarter. Absent higher priority capital deployment alternatives, we anticipate additional buyback activity in the second quarter."

Mr. Brown concluded, "We are pleased with our improved performance and outlook from this time last year. We have started to transition associates back into their physical office locations, and we look forward to implementing the lessons learned over the past year to create an efficient, safe, and collaborative workplace. As our local and national economies continue to improve, we believe we are well positioned to deliver industry leading services to our clients and returns to our shareholders."

Full detail of the Company's first quarter 2021 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information

First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, April 23, 2021 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 10154329. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on Website

This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.

Forward-Looking Statement

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
Management's ability to effectively execute its business plans;
mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
the effect of changes in accounting policies and practices;
changes in consumer spending, borrowing and saving and changes in unemployment;
changes in customers' performance and creditworthiness;
the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2020, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of March 31, 2021, the Company had $16.2 billion in assets, $9.9 billion in loans, $12.6 billion in deposits and $2.3 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.1 billion in assets under management as of March 31, 2021. The Company operated 143 full service banking centers as of March 31, 2021, primarily in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended,
	Mar. 31,			Dec. 31,			Sep. 30,			June 30,			Mar. 31,
	2021			2020			2020			2020			2020
RESULTS OF OPERATIONS
Net income	$	47,315		$	48,312		$	41,477		$	37,393		$	28,628
Net earnings per share - basic	$	0.49		$	0.50		$	0.43		$	0.38		$	0.29
Net earnings per share - diluted	$	0.48		$	0.49		$	0.42		$	0.38		$	0.29
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23

KEY FINANCIAL RATIOS
Return on average assets	1.20		%	1.20		%	1.04		%	0.96		%	0.79		%
Return on average shareholders' equity	8.44		%	8.52		%	7.40		%	6.88		%	5.21		%
Return on average tangible shareholders' equity	15.24		%	15.50		%	13.61		%	12.90		%	9.71		%

Net interest margin	3.35		%	3.45		%	3.32		%	3.38		%	3.71		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.40		%	3.49		%	3.36		%	3.44		%	3.77		%

Ending shareholders' equity as a percent of ending assets	13.97		%	14.29		%	14.11		%	13.99		%	14.47		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	8.22		%	8.47		%	8.25		%	8.09		%	8.25		%
Risk-weighted assets	11.02		%	11.29		%	11.07		%	10.89		%	10.50		%

Average shareholders' equity as a percent of average assets	14.17		%	14.07		%	14.08		%	13.91		%	15.21		%
Average tangible shareholders' equity as a percent of
average tangible assets	8.38		%	8.26		%	8.18		%	7.94		%	8.79		%

Book value per share	$	23.16		$	23.28		$	22.94		$	22.66		$	22.25
Tangible book value per share	$	12.78		$	12.93		$	12.56		$	12.26		$	11.82

Common equity tier 1 ratio⁽²⁾	11.81		%	11.82		%	11.63		%	11.49		%	11.27		%
Tier 1 ratio ⁽²⁾	12.19		%	12.20		%	12.02		%	11.87		%	11.66		%
Total capital ratio ⁽²⁾	15.41		%	15.55		%	15.37		%	15.19		%	13.54		%
Leverage ratio ⁽²⁾	9.34		%	9.55		%	9.55		%	8.98		%	9.49		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽³⁾	$	9,951,855		$	10,127,881		$	10,253,392		$	10,002,379		$	9,220,643
Investment securities	3,782,993			3,403,839			3,162,832			3,164,243			3,115,723
Interest-bearing deposits with other banks	46,912			143,884			40,277			91,990			39,332
Total earning assets	$	13,781,760		$	13,675,604		$	13,456,501		$	13,258,612		$	12,375,698
Total assets	$	16,042,654		$	16,030,986		$	15,842,010		$	15,710,204		$	14,524,422
Noninterest-bearing deposits	$	3,840,046		$	3,720,417		$	3,535,432		$	3,335,866		$	2,643,240
Interest-bearing deposits	8,531,822			8,204,306			8,027,082			8,395,229			7,590,791
Total deposits	$	12,371,868		$	11,924,723		$	11,562,514		$	11,731,095		$	10,234,031
Borrowings	$	886,379		$	1,307,461		$	1,519,748		$	1,272,819		$	1,735,767
Shareholders' equity	$	2,272,749		$	2,256,062		$	2,230,422		$	2,185,865		$	2,209,733

CREDIT QUALITY RATIOS
Allowance to ending loans	1.71		%	1.77		%	1.65		%	1.56		%	1.55		%
Allowance to nonaccrual loans	199.33		%	217.55		%	216.28		%	233.74		%	296.51		%
Allowance to nonperforming loans	175.44		%	199.97		%	196.69		%	208.06		%	203.42		%
Nonperforming loans to total loans	0.97		%	0.89		%	0.84		%	0.75		%	0.76		%
Nonperforming assets to ending loans, plus OREO	0.98		%	0.90		%	0.86		%	0.77		%	0.78		%
Nonperforming assets to total assets	0.60		%	0.56		%	0.55		%	0.49		%	0.48		%
Classified assets to total assets	1.22		%	0.89		%	0.84		%	0.79		%	0.83		%
Net charge-offs to average loans (annualized)	0.38		%	0.26		%	0.21		%	0.12		%	(0.04)		%


⁽¹⁾The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
⁽²⁾March 31, 2021 regulatory capital ratios are preliminary.
⁽³⁾Includes loans held for sale.

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2021			2020
	First			Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans and leases, including fees	$	98,931		$	106,733		$	103,249		$	105,900		$	115,775		$	431,657
Investment securities
Taxable	18,607			18,402			17,906			18,476			19,005			73,789
Tax-exempt	5,043			4,839			4,884			4,937			4,582			19,242
Total investment securities interest	23,650			23,241			22,790			23,413			23,587			93,031
Other earning assets	28			55			31			47			142			275
Total interest income	122,609			130,029			126,070			129,360			139,504			524,963

Interest expense
Deposits	4,333			5,920			7,886			11,751			16,365			41,922
Short-term borrowings	67			30			51			1,274			5,087			6,442
Long-term borrowings	4,333			5,606			5,953			4,759			3,770			20,088
Total interest expense	8,733			11,556			13,890			17,784			25,222			68,452
Net interest income	113,876			118,473			112,180			111,576			114,282			456,511
Provision for credit losses-loans and leases	3,450			13,758			15,299			17,859			23,880			70,796
Provision for credit losses-unfunded commitments	538			(2,250)			(1,925)			2,370			1,568			(237)
Net interest income after provision for credit losses	109,888			106,965			98,806			91,347			88,834			385,952

Noninterest income
Service charges on deposit accounts	7,146			7,654			7,356			6,001			8,435			29,446
Trust and wealth management fees	4,398			4,093			3,855			4,114			4,469			16,531
Bankcard income	3,128			3,060			3,124			2,844			2,698			11,726
Client derivative fees	1,556			2,021			2,203			2,984			3,105			10,313
Foreign exchange income	10,757			12,305			10,530			6,576			9,966			39,377
Net gains from sales of loans	9,454			13,089			18,594			16,662			2,831			51,176
Net gains (losses) on sale of investment securities	(166)			4,618			2			2			(59)			4,563
Unrealized gain (loss) on equity securities	112			8,975			18			150			(98)			9,045
Other	3,937			5,700			3,817			3,392			4,037			16,946
Total noninterest income	40,322			61,515			49,499			42,725			35,384			189,123

Noninterest expenses
Salaries and employee benefits	61,253			62,263			63,769			55,925			54,822			236,779
Net occupancy	5,704			6,159			5,625			5,378			6,104			23,266
Furniture and equipment	3,969			3,596			3,638			3,681			4,053			14,968
Data processing	7,287			7,269			6,837			7,019			6,389			27,514
Marketing	1,361			1,999			1,856			1,339			1,220			6,414
Communication	838			840			855			907			890			3,492
Professional services	1,450			3,038			2,443			2,205			2,275			9,961
Debt extinguishment	0			7,257			0			0			0			7,257
State intangible tax	1,202			1,514			1,514			1,514			1,516			6,058
FDIC assessments	1,349			1,065			1,350			1,290			1,405			5,110
Intangible amortization	2,479			2,764			2,779			2,791			2,792			11,126
Other	5,614			17,034			6,845			6,640			8,200			38,719
Total noninterest expenses	92,506			114,798			97,511			88,689			89,666			390,664
Income before income taxes	57,704			53,682			50,794			45,383			34,552			184,411
Income tax expense (benefit)	10,389			5,370			9,317			7,990			5,924			28,601
Net income	$	47,315		$	48,312		$	41,477		$	37,393		$	28,628		$	155,810

ADDITIONAL DATA
Net earnings per share - basic	$	0.49		$	0.50		$	0.43		$	0.38		$	0.29		$	1.60
Net earnings per share - diluted	$	0.48		$	0.49		$	0.42		$	0.38		$	0.29		$	1.59
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.92

Return on average assets	1.20		%	1.20		%	1.04		%	0.96		%	0.79		%	1.00		%
Return on average shareholders' equity	8.44		%	8.52		%	7.40		%	6.88		%	5.21		%	7.02		%

Interest income	$	122,609		$	130,029		$	126,070		$	129,360		$	139,504		$	524,963
Tax equivalent adjustment	1,652			1,613			1,628			1,664			1,624			6,529
Interest income - tax equivalent	124,261			131,642			127,698			131,024			141,128			531,492
Interest expense	8,733			11,556			13,890			17,784			25,222			68,452
Net interest income - tax equivalent	$	115,528		$	120,086		$	113,808		$	113,240		$	115,906		$	463,040

Net interest margin	3.35		%	3.45		%	3.32		%	3.38		%	3.71		%	3.46		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.40		%	3.49		%	3.36		%	3.44		%	3.77		%	3.51		%

Full-time equivalent employees	2,063			2,075			2,065			2,076			2,067

⁽¹⁾ The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,		% Change		% Change
	2021		2020		2020		2020		2020		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$	210,191	$	231,054	$	207,128	$	283,639	$	261,892	(9.0)	%	(19.7)	%
Interest-bearing deposits with other banks	19,180		20,305		38,806		38,845		71,071		(5.5)	%	(73.0)	%
Investment securities available-for-sale	3,753,763		3,424,580		3,004,963		2,897,413		2,908,688		9.6	%	29.1	%
Investment securities held-to-maturity	121,945		131,687		118,072		127,347		136,744		(7.4)	%	(10.8)	%
Other investments	131,814		133,198		118,292		132,366		143,581		(1.0)	%	(8.2)	%
Loans held for sale	34,590		41,103		69,008		43,950		27,334		(15.8)	%	26.5	%
Loans and leases
Commercial and industrial	3,044,825		3,007,509		3,292,313		3,322,374		2,477,773		1.2	%	22.9	%
Lease financing	66,574		72,987		74,742		80,087		82,602		(8.8)	%	(19.4)	%
Construction real estate	642,709		636,096		575,648		506,085		500,311		1.0	%	28.5	%
Commercial real estate	4,396,582		4,307,858		4,347,125		4,343,702		4,278,257		2.1	%	2.8	%
Residential real estate	946,522		1,003,086		1,027,702		1,043,745		1,061,792		(5.6)	%	(10.9)	%
Home equity	709,667		743,099		754,743		764,171		781,243		(4.5)	%	(9.2)	%
Installment	82,421		81,850		84,629		79,150		80,085		0.7	%	2.9	%
Credit card	44,669		48,485		43,907		42,397		45,756		(7.9)	%	(2.4)	%
Total loans	9,933,969		9,900,970		10,200,809		10,181,711		9,307,819		0.3	%	6.7	%
Less:
Allowance for credit losses	169,923		175,679		168,544		158,661		143,885		(3.3)	%	18.1	%
Net loans	9,764,046		9,725,291		10,032,265		10,023,050		9,163,934		0.4	%	6.5	%
Premises and equipment	204,537		207,211		209,474		211,164		212,787		(1.3)	%	(3.9)	%
Goodwill	937,771		937,771		937,771		937,771		937,771		0.0	%	0.0	%
Other intangibles	61,984		64,552		67,419		70,325		73,258		(4.0)	%	(15.4)	%
Accrued interest and other assets	935,250		1,056,382		1,122,449		1,105,020		1,120,507		(11.5)	%	(16.5)	%
Total Assets	$	16,175,071	$	15,973,134	$	15,925,647	$	15,870,890	$	15,057,567	1.3	%	7.4	%

LIABILITIES
Deposits
Interest-bearing demand	$	2,914,761	$	2,914,787	$	2,632,467	$	2,657,841	$	2,498,109	0.0	%	16.7	%
Savings	4,006,181		3,680,774		3,446,678		3,287,314		2,978,250		8.8	%	34.5	%
Time	1,731,757		1,872,733		1,935,392		2,241,212		2,435,858		(7.5)	%	(28.9)	%
Total interest-bearing deposits	8,652,699		8,468,294		8,014,537		8,186,367		7,912,217		2.2	%	9.4	%
Noninterest-bearing	3,995,370		3,763,709		3,552,893		3,515,048		2,723,341		6.2	%	46.7	%
Total deposits	12,648,069		12,232,003		11,567,430		11,701,415		10,635,558		3.4	%	18.9	%
Federal funds purchased and securities sold
under agreements to repurchase	181,387		166,594		247,658		154,347		215,824		8.9	%	(16.0)	%
FHLB short-term borrowings	0		0		0		0		1,181,900		0.0	%	(100.0)	%
Total short-term borrowings	181,387		166,594		247,658		154,347		1,397,724		8.9	%	(87.0)	%
Long-term debt	583,722		776,202		1,341,164		1,285,767		325,566		(24.8)	%	79.3	%
Total borrowed funds	765,109		942,796		1,588,822		1,440,114		1,723,290		(18.8)	%	(55.6)	%
Accrued interest and other liabilities	502,951		516,265		521,580		508,342		519,336		(2.6)	%	(3.2)	%
Total Liabilities	13,916,129		13,691,064		13,677,832		13,649,871		12,878,184		1.6	%	8.1	%

SHAREHOLDERS' EQUITY
Common stock	1,633,137		1,638,947		1,637,489		1,635,070		1,633,950		(0.4)	%	0.0	%
Retained earnings	745,220		720,429		694,484		675,532		660,653		3.4	%	12.8	%
Accumulated other comprehensive income (loss)	18,101		48,664		42,266		36,431		11,788		(62.8)	%	53.6	%
Treasury stock, at cost	(137,516)		(125,970)		(126,424)		(126,014)		(127,008)		9.2	%	8.3	%
Total Shareholders' Equity	2,258,942		2,282,070		2,247,815		2,221,019		2,179,383		(1.0)	%	3.7	%
Total Liabilities and Shareholders' Equity	$	16,175,071	$	15,973,134	$	15,925,647	$	15,870,890	$	15,057,567	1.3	%	7.4	%

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	Quarterly Averages
	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
	2021		2020		2020		2020		2020
ASSETS
Cash and due from banks	$	232,275	$	228,427	$	233,216	$	284,726	$	235,696
Interest-bearing deposits with other banks	46,912		143,884		40,277		91,990		39,332
Investment securities	3,782,993		3,403,839		3,162,832		3,164,243		3,115,723
Loans held for sale	29,689		42,402		45,186		36,592		13,174
Loans and leases
Commercial and industrial	3,029,716		3,182,749		3,299,259		3,058,677		2,450,893
Lease financing	70,508		74,107		78,500		81,218		85,782
Construction real estate	647,655		608,401		536,870		495,407		501,471
Commercial real estate	4,339,349		4,313,408		4,364,708		4,381,647		4,209,345
Residential real estate	980,718		1,022,701		1,041,250		1,052,996		1,055,456
Home equity	726,134		752,425		759,994		772,424		773,082
Installment	81,377		83,509		82,016		79,016		81,234
Credit card	46,709		48,179		45,609		44,402		50,206
Total loans	9,922,166		10,085,479		10,208,206		9,965,787		9,207,469
Less:
Allowance for credit losses	177,863		172,201		165,270		155,454		121,126
Net loans	9,744,303		9,913,278		10,042,936		9,810,333		9,086,343
Premises and equipment	206,628		208,800		211,454		213,903		215,545
Goodwill	937,771		937,771		937,771		937,771		937,771
Other intangibles	63,529		66,195		69,169		72,086		75,014
Accrued interest and other assets	998,554		1,086,390		1,099,169		1,098,560		805,824
Total Assets	$	16,042,654	$	16,030,986	$	15,842,010	$	15,710,204	$	14,524,422

LIABILITIES
Deposits
Interest-bearing demand	$	2,948,682	$	2,812,748	$	2,668,635	$	2,602,917	$	2,418,193
Savings	3,815,314		3,547,179		3,342,514		3,173,274		2,976,518
Time	1,767,826		1,844,379		2,015,933		2,619,038		2,196,080
Total interest-bearing deposits	8,531,822		8,204,306		8,027,082		8,395,229		7,590,791
Noninterest-bearing	3,840,046		3,720,417		3,535,432		3,335,866		2,643,240
Total deposits	12,371,868		11,924,723		11,562,514		11,731,095		10,234,031
Federal funds purchased and securities sold
under agreements to repurchase	184,483		136,795		150,088		145,291		164,093
FHLB short-term borrowings	67,222		7,937		30,868		548,183		1,189,765
Total short-term borrowings	251,705		144,732		180,956		693,474		1,353,858
Long-term debt	634,674		1,162,729		1,338,792		579,345		381,909
Total borrowed funds	886,379		1,307,461		1,519,748		1,272,819		1,735,767
Accrued interest and other liabilities	511,658		542,740		529,326		520,425		344,891
Total Liabilities	13,769,905		13,774,924		13,611,588		13,524,339		12,314,689

SHAREHOLDERS' EQUITY
Common stock	1,636,884		1,638,032		1,636,107		1,634,405		1,638,851
Retained earnings	726,351		703,257		679,980		658,312		660,108
Accumulated other comprehensive loss	42,253		40,960		40,697		19,888		31,200
Treasury stock, at cost	(132,739)		(126,187)		(126,362)		(126,740)		(120,426)
Total Shareholders' Equity	2,272,749		2,256,062		2,230,422		2,185,865		2,209,733
Total Liabilities and Shareholders' Equity	$	16,042,654	$	16,030,986	$	15,842,010	$	15,710,204	$	14,524,422

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)

	Quarterly Averages
	March 31, 2021				December 31, 2020				March 31, 2020				Linked Qtr. Income Variance						Comparable Qtr. Income Variance
	Balance		Yield		Balance		Yield		Balance		Yield		Rate		Volume		Total		Rate		Volume		Total
Earning assets
Investments:
Investment securities	$	3,782,993	2.54	%	$	3,403,839	2.71	%	$	3,115,723	3.04	%	$	(1,488)	$	1,897	$	409	$	(3,892)	$	3,955	$	63
Interest-bearing deposits with other banks	46,912		0.24	%	143,884		0.15	%	39,332		1.45	%	33		(60)		(27)		(118)		4		(114)
Gross loans ⁽¹⁾	9,951,855		4.03	%	10,127,881		4.18	%	9,220,643		5.04	%	(3,815)		(3,987)		(7,802)		(23,094)		6,250		(16,844)
Total earning assets	13,781,760		3.61	%	13,675,604		3.77	%	12,375,698		4.52	%	(5,270)		(2,150)		(7,420)		(27,104)		10,209		(16,895)

Nonearning assets
Allowance for credit losses	(177,863)				(172,201)				(121,126)
Cash and due from banks	232,275				228,427				235,696
Accrued interest and other assets	2,206,482				2,299,156				2,034,154
Total assets	$	16,042,654			$	16,030,986			$	14,524,422

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	2,948,682	0.07	%	$	2,812,748	0.08	%	$	2,418,193	0.45	%
Savings	3,815,314		0.13	%	3,547,179		0.15	%	2,976,518		0.45	%
Time	1,767,826		0.60	%	1,844,379		0.86	%	2,196,080		1.88	%
Total interest-bearing deposits	8,531,822		0.21	%	8,204,306		0.29	%	7,590,791		0.86	%	$	(1,661)	$	74	$	(1,587)	$	(12,467)	$	435	$	(12,032)
Borrowed funds
Short-term borrowings	251,705		0.11	%	144,732		0.08	%	1,353,858		1.51	%	9		28		37		(4,723)		(297)		(5,020)
Long-term debt	634,674		2.77	%	1,162,729		1.91	%	381,909		3.96	%	2,509		(3,782)		(1,273)		(1,134)		1,697		563
Total borrowed funds	886,379		2.01	%	1,307,461		1.71	%	1,735,767		2.05	%	2,518		(3,754)		(1,236)		(5,857)		1,400		(4,457)
Total interest-bearing liabilities	9,418,201		0.38	%	9,511,767		0.48	%	9,326,558		1.08	%	857		(3,680)		(2,823)		(18,324)		1,835		(16,489)

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	3,840,046				3,720,417				2,643,240
Other liabilities	511,658				542,740				344,891
Shareholders' equity	2,272,749				2,256,062				2,209,733
Total liabilities & shareholders' equity	$	16,042,654			$	16,030,986			$	14,524,422

Net interest income	$	113,876			$	118,473			$	114,282			$	(6,127)	$	1,530	$	(4,597)	$	(8,780)	$	8,374	$	(406)
Net interest spread			3.23	%			3.29	%			3.44	%
Net interest margin			3.35	%			3.45	%			3.71	%

Tax equivalent adjustment			0.05	%			0.04	%			0.06	%
Net interest margin (fully tax equivalent)			3.40	%			3.49	%			3.77	%


⁽¹⁾ Loans held for sale and nonaccrual loans are included in gross loans.

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)

	Mar. 31,			Dec. 31,			Sep. 30,			June 30,			Mar. 31,
	2021			2020			2020			2020			2020
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$	175,679		$	168,544		$	158,661		$	143,885		$	57,650
Day one adoption impact of ASC 326	0			0			0			0			61,505
Provision for credit losses	3,450			13,758			15,299			17,859			23,880
Gross charge-offs
Commercial and industrial	7,910			1,505			1,467			1,282			1,091
Lease financing	0			0			852			0			0
Construction real estate	2			0			0			0			0
Commercial real estate	1,250			6,270			3,789			2,037			4
Residential real estate	1			203			22			148			115
Home equity	611			386			460			428			267
Installment	36			21			59			7			61
Credit card	222			169			171			234			311
Total gross charge-offs	10,032			8,554			6,820			4,136			1,849
Recoveries
Commercial and industrial	337			367			265			275			2,000
Lease financing	0			(6)			6			0			0
Construction real estate	0			3			0			14			0
Commercial real estate	195			844			760			424			234
Residential real estate	44			145			91			93			52
Home equity	177			428			209			156			339
Installment	34			65			35			27			31
Credit card	39			85			38			64			43
Total recoveries	826			1,931			1,404			1,053			2,699
Total net charge-offs	9,206			6,623			5,416			3,083			(850)
Ending allowance for credit losses	$	169,923		$	175,679		$	168,544		$	158,661		$	143,885

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	1.01		%	0.14		%	0.14		%	0.13		%	(0.15)		%
Lease financing	0.00		%	0.03		%	4.29		%	0.00		%	0.00		%
Construction real estate	0.00		%	0.00		%	0.00		%	(0.01)		%	0.00		%
Commercial real estate	0.10		%	0.50		%	0.28		%	0.15		%	(0.02)		%
Residential real estate	(0.02)		%	0.02		%	(0.03)		%	0.02		%	0.02		%
Home equity	0.24		%	(0.02)		%	0.13		%	0.14		%	(0.04)		%
Installment	0.01		%	(0.21)		%	0.12		%	(0.10)		%	0.15		%
Credit card	1.59		%	0.69		%	1.16		%	1.54		%	2.15		%
Total net charge-offs	0.38		%	0.26		%	0.21		%	0.12		%	(0.04)		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans ⁽¹⁾
Commercial and industrial	$	24,941		$	29,230		$	34,686		$	33,906		$	21,126
Lease financing	0			0			1,092			1,353			222
Construction real estate	0			0			0			0			0
Commercial real estate	44,514			34,682			24,521			14,002			10,050
Residential real estate	11,359			11,601			12,104			12,813			11,163
Home equity	4,286			5,076			5,374			5,604			5,821
Installment	146			163			153			201			145
Nonaccrual loans	85,246			80,752			77,930			67,879			48,527
Accruing troubled debt restructurings (TDRs)	11,608			7,099			7,759			8,377			22,206
Total nonperforming loans	96,854			87,851			85,689			76,256			70,733
Other real estate owned (OREO)	854			1,287			1,643			1,872			1,467
Total nonperforming assets	97,708			89,138			87,332			78,128			72,200
Accruing loans past due 90 days or more	92			169			79			124			120
Total underperforming assets	$	97,800		$	89,307		$	87,411		$	78,252		$	72,320
Total classified assets	$	196,782		$	142,021		$	134,002		$	125,543		$	124,510

CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	199.33		%	217.55		%	216.28		%	233.74		%	296.51		%
Nonperforming loans	175.44		%	199.97		%	196.69		%	208.06		%	203.42		%
Total ending loans	1.71		%	1.77		%	1.65		%	1.56		%	1.55		%
Nonperforming loans to total loans	0.97		%	0.89		%	0.84		%	0.75		%	0.76		%
Nonperforming assets to
Ending loans, plus OREO	0.98		%	0.90		%	0.86		%	0.77		%	0.78		%
Total assets	0.60		%	0.56		%	0.55		%	0.49		%	0.48		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.87		%	0.83		%	0.78		%	0.68		%	0.54		%
Total assets	0.53		%	0.51		%	0.50		%	0.44		%	0.33		%
Classified assets to total assets	1.22		%	0.89		%	0.84		%	0.79		%	0.83		%

⁽¹⁾ Nonaccrual loans include nonaccrual TDRs of $20.9 million, $14.7 million, $29.3 million, $32.7 million, and $18.4 million, as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)

	Mar. 31,			Dec. 31,			Sep. 30,			June 30,			Mar. 31,
	2021			2020			2020			2020			2020
PER COMMON SHARE
Market Price
High	$	26.40		$	17.77		$	15.15		$	16.38		$	25.52
Low	$	17.62		$	12.07		$	11.40		$	11.52		$	12.67
Close	$	24.00		$	17.53		$	12.01		$	13.89		$	14.91

Average shares outstanding - basic	96,873,940			97,253,787			97,247,080			97,220,748			97,736,690
Average shares outstanding - diluted	97,727,527			98,020,534			98,008,733			97,988,600			98,356,214
Ending shares outstanding	97,517,693			98,021,929			97,999,763			98,018,858			97,968,958

Total shareholders' equity	$	2,258,942		$	2,282,070		$	2,247,815		$	2,221,019		$	2,179,383

REGULATORY CAPITAL	Preliminary
Common equity tier 1 capital	$	1,334,882		$	1,325,922		$	1,293,716		$	1,267,609		$	1,243,152
Common equity tier 1 capital ratio	11.81		%	11.82		%	11.63		%	11.49		%	11.27		%
Tier 1 capital	$	1,377,892		$	1,368,818		$	1,336,497		$	1,310,276		$	1,285,705
Tier 1 ratio	12.19		%	12.20		%	12.02		%	11.87		%	11.66		%
Total capital	$	1,741,755		$	1,744,802		$	1,708,817		$	1,676,532		$	1,493,100
Total capital ratio	15.41		%	15.55		%	15.37		%	15.19		%	13.54		%
Total capital in excess of minimum requirement	$	554,834		$	566,795		$	541,263		$	517,902		$	335,229
Total risk-weighted assets	$	11,304,012		$	11,219,114		$	11,119,560		$	11,034,570		$	11,027,347
Leverage ratio	9.34		%	9.55		%	9.55		%	8.98		%	9.49		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	13.97		%	14.29		%	14.11		%	13.99		%	14.47		%
Ending tangible shareholders' equity to ending tangible assets	8.22		%	8.47		%	8.25		%	8.09		%	8.25		%
Average shareholders' equity to average assets	14.17		%	14.07		%	14.08		%	13.91		%	15.21		%
Average tangible shareholders' equity to average tangible assets	8.38		%	8.26		%	8.18		%	7.94		%	8.79		%

REPURCHASE PROGRAM ⁽¹⁾
Shares repurchased	840,115			0			0			0			880,000
Average share repurchase price	$	21.40		N/A			N/A			N/A			$	18.96
Total cost of shares repurchased	$	17,982		N/A			N/A			N/A			$	16,686

⁽¹⁾Represents share repurchases as part of publicly announced plans.

N/A = Not applicable

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SOURCE First Financial Bancorp.

First Financial Bancorp Announces First Quarter 2021 Financial Results