Exhibit 99.1
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First Financial Bancorp Announces Third Quarter 2020 Financial Results

•Earnings per diluted share of $0.42; $0.44 on an adjusted(1) basis
•Return on average assets of 1.04%; 1.09% as adjusted(1)
•Record core fee income driven by $18.6 million of mortgage banking and $10.5 million of foreign exchange income
•Provision for credit losses of $13.4 million; 34% reduction from second quarter

Cincinnati, Ohio - October 22, 2020 - First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and nine months ended September 30, 2020.

For the three months ended September 30, 2020, the Company reported net income of $41.5 million, or $0.42 per diluted common share. These results compare to net income of $37.4 million, or $0.38 per diluted common share, for the second quarter of 2020 and $50.9 million, or $0.51 per diluted common share, for the third quarter of 2019. For the nine months ended September 30, 2020, First Financial had earnings per diluted common share of $1.10 compared to $1.51 for the same period in 2019.

Return on average assets for the third quarter of 2020 was 1.04% while return on average tangible common equity was 13.61%. These compare to returns on average assets of 0.96% and 1.41%, and returns on average tangible common equity of 12.90% and 16.15%, in the second quarter of 2020 and the third quarter of 2019, respectively.

Third quarter 2020 highlights include:

•After adjustments(1) for certain nonrecurring and certain COVID-19 related items:
◦Net income of $0.44 per diluted common share
◦1.09% return on average assets
◦14.18% return on average tangible common equity

•Adjustments(1) to net income include:
◦$0.1 million of costs directly related to COVID-19
◦$2.1 million of other nonrecurring costs such as merger related and branch consolidation costs

•Strong noninterest income of $49.5 million, an increase of 15.9% from the linked quarter
◦Mortgage banking revenue increased $1.9 million, or 11.6%
◦Record foreign exchange income of $10.5 million; 60.1% increase from linked quarter
◦Service charges on deposits, including overdrafts, increased $1.4 million, or 22.6%

• Noninterest expenses of $97.5 million, or $95.3 million as adjusted(1)
◦Includes $7.0 million of incremental incentive compensation expenses directly related to strong operating results and fee income generation
◦Includes $0.5 million contribution to First Financial Foundation
◦Efficiency ratio of 60.3%; 58.9% as adjusted(1)

•Loan balances were relatively unchanged at $10.2 billion

•Average transactional deposit balances grew $434.5 million compared to the linked quarter; 19.0% 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.
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•Total Allowance for Credit Losses of $183.3 million; Total quarterly provision for credit losses of $13.4 million
◦Loans and leases - ACL of $168.5 million, 1.65% of total loans; 1.81% of loans excluding PPP
◦Unfunded Commitments - ACL of $14.8 million
◦Third quarter provision expense driven by expected economic impact from COVID-19, partially offset by higher prepayment rates

•Net interest margin of 3.36% on a fully tax-equivalent basis(1)
◦8 basis point decline compared to the linked quarter; 19 basis point decline due to loan yields partially offset by 14 basis point impact from reduced funding costs
◦3 basis points of incremental dilution from PPP from the linked quarter
◦Impact of decline in short term rates, partially offset by funding cost reductions and higher loan fees

•Strong capital ratios
◦Total capital of 15.37%
◦Tier 1 common equity of 11.63%
◦Tangible common equity of 8.25%; 8.79% excluding PPP loans
◦Tangible book value per share of $12.56; $0.30 increase compared to linked quarter

Archie Brown, President and Chief Executive Officer, remarked, “We are pleased with our strong third quarter operating results while maintaining focus on three important pandemic related priorities: maintaining the health and safety of our associates, assisting our clients and communities and strengthening our Company.”

Mr. Brown continued, “Despite continued interest rate headwinds and difficult business conditions, we posted strong earnings as reflected in our adjusted earnings per share of $0.44, adjusted return on assets of 1.09%, and an adjusted efficiency ratio of 58.9%. Additionally, we were encouraged that credit trends remained relatively stable for the quarter. Given the backdrop of increasing Covid-19 cases in the Midwest and uncertainty about the timing of vaccines to bring the pandemic under control, we recorded $13.4 million of provision expense in anticipation of credit deterioration in future quarters, leading to an increase in our allowance for credit losses to 1.81% of total loans, excluding PPP.”

Mr. Brown further commented, “Third quarter results were primarily driven by exceptional fee income, well exceeding second quarter results, which at the time was our highest core fee income on record. The steadfast diligence of our mortgage team capitalized on the continued historic low interest rate environment to drive another sensational quarter in mortgage banking revenue, and Bannockburn recorded its highest income quarter ever. We were also pleased to see service charges improve as local economies continued to gradually reopen and consumer spending increased. Total expenses increased during the quarter as a direct result of our strong operating performance and fee income generation leading to higher incentive and commission expense.”

Mr. Brown concluded, “We are encouraged by our improved operating performance and by the resiliency of our associates. Six months into a global pandemic, we now have 98% of our banking centers fully open to service the needs of our clients, and associates in our corporate offices and operations centers have begun gradually returning, albeit at significantly reduced capacity levels. We continue to provide a bridge for our clients to navigate the environment with approximately $630 million, or 6.2% of total loans, receiving a round two deferral and all capital ratios have improved to equal or surpass pre-pandemic levels. Additionally, this year we have added $125 million to our Allowance for Credit Losses, which brings our total ACL to greater than three times the balance at December 31, 2019. We remain committed to managing pandemic priorities and positioning the Company for even stronger performance when the health crisis subsides.”
Full detail of the Company’s third quarter 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, October 23, 2020 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 1048538. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.


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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.



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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; (iv) 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.

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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, 2019, 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 September 30, 2020, the Company had $15.9 billion in assets, $10.2 billion in loans, $11.6 billion in deposits and $2.2 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 $2.8 billion in assets under management as of September 30, 2020. The Company operated 143 full service banking centers as of September 30, 2020, primarily in Ohio, Indiana and Kentucky, 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.


Contact Information
Investors/Analysts                    Media
Jamie Anderson                        Tim Condron
Chief Financial Officer                    Marketing Communications Manager
(513) 887-5400                        (513) 979-5796
InvestorRelations@bankatfirst.com            media@bankatfirst.com    
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Selected Financial Information
September 30, 2020
(unaudited)

ContentsPage
Consolidated Financial Highlights2
Consolidated Statements of Income3
Consolidated Quarterly Statements of Income4-5
Consolidated Statements of Condition6
Average Consolidated Statements of Condition7
Net Interest Margin Rate / Volume Analysis8-9
Credit Quality10
Capital Adequacy11



    
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,Nine months ended,
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,September 30,
2020202020202019201920202019
RESULTS OF OPERATIONS
Net income$41,477 $37,393 $28,628 $48,677 $50,856 $107,498 $149,398 
Net earnings per share - basic$0.43 $0.38 $0.29 $0.49 $0.52 $1.10 $1.52 
Net earnings per share - diluted$0.42 $0.38 $0.29 $0.49 $0.51 $1.10 $1.51 
Dividends declared per share$0.23 $0.23 $0.23 $0.23 $0.23 $0.69 $0.67 
KEY FINANCIAL RATIOS
Return on average assets1.04 %0.96 %0.79 %1.34 %1.41 %0.93 %1.41 %
Return on average shareholders' equity7.40 %6.88 %5.21 %8.60 %9.13 %6.50 %9.29 %
Return on average tangible shareholders' equity13.61 %12.90 %9.71 %15.84 %16.15 %12.08 %16.48 %
Net interest margin3.32 %3.38 %3.71 %3.84 %3.91 %3.46 %3.98 %
Net interest margin (fully tax equivalent) (1)
3.36 %3.44 %3.77 %3.89 %3.96 %3.52 %4.03 %
Ending shareholders' equity as a percent of ending assets14.11 %13.99 %14.47 %15.49 %15.62 %14.11 %15.62 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets8.25 %8.09 %8.25 %9.07 %9.17 %8.25 %9.17 %
Risk-weighted assets11.07 %10.89 %10.50 %11.09 %11.34 %11.07 %11.34 %
Average shareholders' equity as a percent of average assets14.08 %13.91 %15.21 %15.53 %15.43 %14.38 %15.23 %
Average tangible shareholders' equity as a percent of
    average tangible assets8.18 %7.94 %8.79 %9.07 %9.35 %8.29 %9.19 %
Book value per share$22.94 $22.66 $22.25 $22.82 $22.59 $22.94 $22.59 
Tangible book value per share$12.56 $12.26 $11.82 $12.42 $12.33 $12.56 $12.33 
Common equity tier 1 ratio (2)
11.63 %11.49 %11.27 %11.30 %11.52 %11.63 %11.52 %
Tier 1 ratio (2)
12.02 %11.87 %11.66 %11.69 %11.91 %12.02 %11.91 %
Total capital ratio (2)
15.37 %15.19 %13.54 %13.39 %13.62 %15.37 %13.62 %
Leverage ratio (2)
9.55 %8.98 %9.49 %9.58 %9.75 %9.55 %9.75 %
AVERAGE BALANCE SHEET ITEMS
Loans (3)
$10,253,392 $10,002,379 $9,220,643 $9,149,222 $9,014,092 $9,827,033 $8,880,904 
Investment securities3,162,832 3,164,243 3,115,723 3,102,867 3,290,666 3,147,655 3,351,559 
Interest-bearing deposits with other banks40,277 91,990 39,332 36,672 38,569 57,138 35,525 
  Total earning assets$13,456,501 $13,258,612 $12,375,698 $12,288,761 $12,343,327 $13,031,826 $12,267,988 
Total assets$15,842,010 $15,710,204 $14,524,422 $14,460,288 $14,320,514 $15,360,642 $14,126,615 
Noninterest-bearing deposits$3,535,432 $3,335,866 $2,643,240 $2,638,908 $2,513,458 $3,172,841 $2,485,291 
Interest-bearing deposits8,027,082 8,395,229 7,590,791 7,583,531 7,504,708 8,004,450 7,575,263 
  Total deposits$11,562,514 $11,731,095 $10,234,031 $10,222,439 $10,018,166 $11,177,291 $10,060,554 
Borrowings$1,519,748 $1,272,819 $1,735,767 $1,613,696 $1,816,983 $1,509,482 $1,687,716 
Shareholders' equity$2,230,422 $2,185,865 $2,209,733 $2,245,107 $2,210,327 $2,208,753 $2,150,945 
CREDIT QUALITY RATIOS
Allowance to ending loans1.65 %1.56 %1.55 %0.63 %0.62 %1.65 %0.62 %
Allowance to nonaccrual loans216.28 %233.74 %296.51 %119.69 %93.18 %216.28 %93.18 %
Allowance to nonperforming loans196.69 %208.06 %203.42 %96.73 %71.46 %196.69 %71.46 %
Nonperforming loans to total loans0.84 %0.75 %0.76 %0.65 %0.87 %0.84 %0.87 %
Nonperforming assets to ending loans, plus OREO0.86 %0.77 %0.78 %0.67 %0.89 %0.86 %0.89 %
Nonperforming assets to total assets0.55 %0.49 %0.48 %0.42 %0.56 %0.55 %0.56 %
Classified assets to total assets0.84 %0.79 %0.83 %0.62 %0.92 %0.84 %0.92 %
Net charge-offs to average loans (annualized)0.21 %0.12 %(0.04)%0.15 %0.45 %0.10 %0.39 %

(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) September 30, 2020 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.
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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended,Nine months ended,
September 30,September 30,
20202019% Change20202019% Change
Interest income
  Loans and leases, including fees$103,249 $126,786 (18.6)%$324,924 $376,207 (13.6)%
  Investment securities
     Taxable17,906 22,180 (19.3)%55,387 70,031 (20.9)%
     Tax-exempt4,884 4,457 9.6 %14,403 13,051 10.4 %
        Total investment securities interest22,790 26,637 (14.4)%69,790 83,082 (16.0)%
  Other earning assets31 222 (86.0)%220 638 (65.5)%
       Total interest income126,070 153,645 (17.9)%394,934 459,927 (14.1)%
Interest expense
  Deposits7,886 20,151 (60.9)%36,002 60,006 (40.0)%
  Short-term borrowings51 7,199 (99.3)%6,412 19,805 (67.6)%
  Long-term borrowings5,953 4,760 25.1 %14,482 14,764 (1.9)%
      Total interest expense13,890 32,110 (56.7)%56,896 94,575 (39.8)%
      Net interest income112,180 121,535 (7.7)%338,038 365,352 (7.5)%
  Provision for credit losses-loans and leases (1)
15,299 5,228 192.6 %57,038 25,969 119.6 %
  Provision for credit losses-unfunded commitments (1)
(1,925)(216)N/M2,013 (342)N/M
      Net interest income after provision for credit losses98,806 116,523 (15.2)%278,987 339,725 (17.9)%
Noninterest income
  Service charges on deposit accounts7,356 9,874 (25.5)%21,792 28,596 (23.8)%
  Trust and wealth management fees3,855 3,718 3.7 %12,438 11,731 6.0 %
  Bankcard income3,124 3,316 (5.8)%8,666 15,399 (43.7)%
  Client derivative fees2,203 4,859 (54.7)%8,292 11,468 (27.7)%
  Foreign exchange income10,530 1,708 N/M27,072 1,725 N/M
  Net gains from sales of loans18,594 4,806 286.9 %38,087 10,128 276.1 %
  Net gains (losses) on sale of investment securities2 105 (98.1)%(55)(110)50.0 %
  Other3,835 4,754 (19.3)%11,316 15,668 (27.8)%
      Total noninterest income49,499 33,140 49.4 %127,608 94,605 34.9 %
Noninterest expenses
  Salaries and employee benefits63,769 53,212 19.8 %174,516 155,109 12.5 %
  Net occupancy5,625 5,509 2.1 %17,107 17,735 (3.5)%
  Furniture and equipment3,638 4,120 (11.7)%11,372 11,758 (3.3)%
  Data processing6,837 5,774 18.4 %20,245 15,885 27.4 %
  Marketing1,856 1,346 37.9 %4,415 4,928 (10.4)%
  Communication855 910 (6.0)%2,652 2,385 11.2 %
  Professional services2,443 4,771 (48.8)%6,923 9,062 (23.6)%
  State intangible tax1,514 1,445 4.8 %4,544 4,062 11.9 %
  FDIC assessments1,350 (1,097)223.1 %4,045 918 340.6 %
  Intangible amortization 2,779 2,432 14.3 %8,362 6,521 28.2 %
  Other6,845 8,020 (14.7)%21,685 21,082 2.9 %
      Total noninterest expenses97,511 86,442 12.8 %275,866 249,445 10.6 %
Income before income taxes50,794 63,221 (19.7)%130,729 184,885 (29.3)%
Income tax expense9,317 12,365 (24.7)%23,231 35,487 (34.5)%
      Net income$41,477 $50,856 (18.4)%$107,498 $149,398 (28.0)%
ADDITIONAL DATA
Net earnings per share - basic$0.43 $0.52 $1.10 $1.52 
Net earnings per share - diluted$0.42 $0.51 $1.10 $1.51 
Dividends declared per share$0.23 $0.23 $0.69 $0.67 
Return on average assets1.04 %1.41 %0.93 %1.41 %
Return on average shareholders' equity7.40 %9.13 %6.50 %9.29 %
Interest income$126,070 $153,645 (17.9)%$394,934 $459,927 (14.1)%
Tax equivalent adjustment1,628 1,759 (7.4)%4,916 4,698 4.6 %
   Interest income - tax equivalent127,698 155,404 (17.8)%399,850 464,625 (13.9)%
Interest expense13,890 32,110 (56.7)%56,896 94,575 (39.8)%
   Net interest income - tax equivalent$113,808 $123,294 (7.7)%$342,954 $370,050 (7.3)%
Net interest margin3.32 %3.91 %3.46 %3.98 %
Net interest margin (fully tax equivalent) (2)
3.36 %3.96 %3.52 %4.03 %
Full-time equivalent employees2,065 2,064 
(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.
(2) 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.
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FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2020
ThirdSecondFirstYear to% Change
QuarterQuarterQuarterDateLinked Qtr.
Interest income
  Loans and leases, including fees$103,249 $105,900 $115,775 $324,924 (2.5)%
  Investment securities
     Taxable17,906 18,476 19,005 55,387 (3.1)%
     Tax-exempt4,884 4,937 4,582 14,403 (1.1)%
        Total investment securities interest22,790 23,413 23,587 69,790 (2.7)%
  Other earning assets31 47 142 220 (34.0)%
       Total interest income126,070 129,360 139,504 394,934 (2.5)%
Interest expense
  Deposits7,886 11,751 16,365 36,002 (32.9)%
  Short-term borrowings51 1,274 5,087 6,412 (96.0)%
  Long-term borrowings5,953 4,759 3,770 14,482 25.1 %
      Total interest expense13,890 17,784 25,222 56,896 (21.9)%
      Net interest income112,180 111,576 114,282 338,038 0.5 %
  Provision for credit losses-loans and leases (1)
15,299 17,859 23,880 57,038 (14.3)%
  Provision for credit losses-unfunded commitments (1)
(1,925)2,370 1,568 2,013 (181.2)%
      Net interest income after provision for credit losses98,806 91,347 88,834 278,987 8.2 %
Noninterest income
  Service charges on deposit accounts7,356 6,001 8,435 21,792 22.6 %
  Trust and wealth management fees3,855 4,114 4,469 12,438 (6.3)%
  Bankcard income3,124 2,844 2,698 8,666 9.8 %
  Client derivative fees2,203 2,984 3,105 8,292 (26.2)%
  Foreign exchange income10,530 6,576 9,966 27,072 60.1 %
  Net gains from sales of loans18,594 16,662 2,831 38,087 11.6 %
  Net gains (losses) on sale of investment securities2 2 (59)(55)0.0 %
  Other3,835 3,542 3,939 11,316 8.3 %
      Total noninterest income49,499 42,725 35,384 127,608 15.9 %
Noninterest expenses
  Salaries and employee benefits63,769 55,925 54,822 174,516 14.0 %
  Net occupancy5,625 5,378 6,104 17,107 4.6 %
  Furniture and equipment3,638 3,681 4,053 11,372 (1.2)%
  Data processing6,837 7,019 6,389 20,245 (2.6)%
  Marketing1,856 1,339 1,220 4,415 38.6 %
  Communication855 907 890 2,652 (5.7)%
  Professional services2,443 2,205 2,275 6,923 10.8 %
  State intangible tax1,514 1,514 1,516 4,544 0.0 %
  FDIC assessments1,350 1,290 1,405 4,045 4.7 %
  Intangible amortization 2,779 2,791 2,792 8,362 (0.4)%
  Other6,845 6,640 8,200 21,685 3.1 %
      Total noninterest expenses97,511 88,689 89,666 275,866 9.9 %
Income before income taxes50,794 45,383 34,552 130,729 11.9 %
Income tax expense9,317 7,990 5,924 23,231 16.6 %
      Net income$41,477 $37,393 $28,628 $107,498 10.9 %
ADDITIONAL DATA
Net earnings per share - basic$0.43 $0.38 $0.29 $1.10 
Net earnings per share - diluted$0.42 $0.38 $0.29 $1.10 
Dividends declared per share$0.23 $0.23 $0.23 $0.69 
Return on average assets1.04 %0.96 %0.79 %0.93 %
Return on average shareholders' equity7.40 %6.88 %5.21 %6.50 %
Interest income$126,070 $129,360 $139,504 $394,934 (2.5)%
Tax equivalent adjustment1,628 1,664 1,624 4,916 (2.2)%
   Interest income - tax equivalent127,698 131,024 141,128 399,850 (2.5)%
Interest expense13,890 17,784 25,222 56,896 (21.9)%
   Net interest income - tax equivalent$113,808 $113,240 $115,906 $342,954 0.5 %
Net interest margin3.32 %3.38 %3.71 %3.46 %
Net interest margin (fully tax equivalent) (2)
3.36 %3.44 %3.77 %3.52 %
Full-time equivalent employees2,065 2,076 2,067 
(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.
(2) 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.
4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2019
FourthThirdSecondFirstFull
QuarterQuarterQuarterQuarterYear
Interest income
  Loans and leases, including fees$122,802 $126,786 $126,365 $123,056 $499,009 
  Investment securities
     Taxable20,137 22,180 23,616 24,235 90,168 
     Tax-exempt4,545 4,457 4,336 4,258 17,596 
        Total investment securities interest24,682 26,637 27,952 28,493 107,764 
  Other earning assets167 222 206 210 805 
       Total interest income147,651 153,645 154,523 151,759 607,578 
Interest expense
  Deposits19,026 20,151 20,612 19,243 79,032 
  Short-term borrowings5,430 7,199 6,646 5,960 25,235 
  Long-term borrowings4,293 4,760 4,963 5,041 19,057 
      Total interest expense28,749 32,110 32,221 30,244 123,324 
      Net interest income118,902 121,535 122,302 121,515 484,254 
  Provision for credit losses-loans and leases (1)
4,629 5,228 6,658 14,083 30,598 
  Provision for credit losses-unfunded commitments (1)
177 (216)(132)6 (165)
      Net interest income after provision for credit losses114,096 116,523 115,776 107,426 453,821 
Noninterest income
  Service charges on deposit accounts9,343 9,874 9,819 8,903 37,939 
  Trust and wealth management fees3,913 3,718 3,943 4,070 15,644 
  Bankcard income3,405 3,316 6,497 5,586 18,804 
  Client derivative fees4,194 4,859 4,905 1,704 15,662 
  Foreign exchange income6,014 1,708 17 0 7,739 
  Net gains from sales of loans4,723 4,806 3,432 1,890 14,851 
  Net gains on sale of investment securities(296)105 (37)(178)(406)
  Other5,472 4,754 6,062 4,852 21,140 
      Total noninterest income36,768 33,140 34,638 26,827 131,373 
Noninterest expenses
  Salaries and employee benefits53,952 53,212 53,985 47,912 209,061 
  Net occupancy6,334 5,509 5,596 6,630 24,069 
  Furniture and equipment4,145 4,120 4,222 3,416 15,903 
  Data processing5,996 5,774 4,984 5,127 21,881 
  Marketing1,980 1,346 1,976 1,606 6,908 
  Communication882 910 747 728 3,267 
  Professional services2,192 4,771 2,039 2,252 11,254 
  State intangible tax1,767 1,445 1,307 1,310 5,829 
  FDIC assessments1,055 (1,097)1,065 950 1,973 
  Intangible amortization 3,150 2,432 2,044 2,045 9,671 
  Other11,434 8,020 6,545 6,517 32,516 
      Total noninterest expenses92,887 86,442 84,510 78,493 342,332 
Income before income taxes57,977 63,221 65,904 55,760 242,862 
Income tax expense (benefit)9,300 12,365 13,201 9,921 44,787 
      Net income$48,677 $50,856 $52,703 $45,839 $198,075 
ADDITIONAL DATA
Net earnings per share - basic$0.49 $0.52 $0.54 $0.47 $2.01 
Net earnings per share - diluted$0.49 $0.51 $0.53 $0.47 $2.00 
Dividends declared per share$0.23 $0.23 $0.22 $0.22 $0.90 
Return on average assets1.34 %1.41 %1.50 %1.33 %1.39 %
Return on average shareholders' equity8.60 %9.13 %9.85 %8.88 %9.11 %
Interest income$147,651 $153,645 $154,523 $151,759 $607,578 
Tax equivalent adjustment1,630 1,759 1,416 1,523 6,328 
   Interest income - tax equivalent149,281 155,404 155,939 153,282 613,906 
Interest expense28,749 32,110 32,221 30,244 123,324 
   Net interest income - tax equivalent$120,532 $123,294 $123,718 $123,038 $490,582 
Net interest margin3.84 %3.91 %3.99 %4.05 %3.95 %
Net interest margin (fully tax equivalent) (2)
3.89 %3.96 %4.04 %4.10 %4.00 %
Full-time equivalent employees2,065 2,064 2,076 2,087 
(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.
(2) 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.
5

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,% Change% Change
20202020202020192019Linked Qtr.Comp Qtr.
ASSETS
     Cash and due from banks$207,128 $283,639 $261,892 $200,691 $242,482 (27.0)%(14.6)%
     Interest-bearing deposits with other banks38,806 38,845 71,071 56,948 39,669 (0.1)%(2.2)%
     Investment securities available-for-sale3,004,963 2,897,413 2,908,688 2,852,084 2,850,502 3.7 %5.4 %
     Investment securities held-to-maturity118,072 127,347 136,744 142,862 148,778 (7.3)%(20.6)%
     Other investments118,292 132,366 143,581 125,020 124,965 (10.6)%(5.3)%
     Loans held for sale69,008 43,950 27,334 13,680 23,528 57.0 %193.3 %
     Loans and leases
       Commercial and industrial3,292,313 3,322,374 2,477,773 2,465,877 2,470,017 (0.9)%33.3 %
       Lease financing74,742 80,087 82,602 88,364 92,616 (6.7)%(19.3)%
       Construction real estate575,648 506,085 500,311 493,182 515,960 13.7 %11.6 %
       Commercial real estate4,347,125 4,343,702 4,278,257 4,194,651 4,015,908 0.1 %8.2 %
       Residential real estate1,027,702 1,043,745 1,061,792 1,055,949 1,055,007 (1.5)%(2.6)%
       Home equity754,743 764,171 781,243 771,869 776,885 (1.2)%(2.9)%
       Installment84,629 79,150 80,085 82,589 88,275 6.9 %(4.1)%
       Credit card43,907 42,397 45,756 49,184 49,010 3.6 %(10.4)%
          Total loans10,200,809 10,181,711 9,307,819 9,201,665 9,063,678 0.2 %12.5 %
       Less:
          Allowance for credit losses (1)
168,544 158,661 143,885 57,650 56,552 6.2 %198.0 %
                Net loans 10,032,265 10,023,050 9,163,934 9,144,015 9,007,126 0.1 %11.4 %
     Premises and equipment209,474 211,164 212,787 214,506 213,681 (0.8)%(2.0)%
     Goodwill 937,771 937,771 937,771 937,771 937,689 0.0 %0.0 %
     Other intangibles67,419 70,325 73,258 76,201 79,506 (4.1)%(15.2)%
     Accrued interest and other assets1,122,449 1,105,020 1,120,507 747,847 812,519 1.6 %38.1 %
       Total Assets$15,925,647 $15,870,890 $15,057,567 $14,511,625 $14,480,445 0.3 %10.0 %
LIABILITIES
     Deposits
       Interest-bearing demand$2,632,467 $2,657,841 $2,498,109 $2,364,881 $2,316,301 (1.0)%13.6 %
       Savings3,446,678 3,287,314 2,978,250 2,960,979 2,924,200 4.8 %17.9 %
       Time1,935,392 2,241,212 2,435,858 2,240,441 2,308,617 (13.6)%(16.2)%
          Total interest-bearing deposits8,014,537 8,186,367 7,912,217 7,566,301 7,549,118 (2.1)%6.2 %
       Noninterest-bearing3,552,893 3,515,048 2,723,341 2,643,928 2,534,739 1.1 %40.2 %
          Total deposits11,567,430 11,701,415 10,635,558 10,210,229 10,083,857 (1.1)%14.7 %
     Federal funds purchased and securities sold
         under agreements to repurchase247,658 154,347 215,824 165,181 85,286 60.5 %190.4 %
     FHLB short-term borrowings0 0 1,181,900 1,151,000 1,128,900 N/M(100.0)%
          Total short-term borrowings247,658 154,347 1,397,724 1,316,181 1,214,186 60.5 %(79.6)%
     Long-term debt1,341,164 1,285,767 325,566 414,376 498,778 4.3 %168.9 %
          Total borrowed funds1,588,822 1,440,114 1,723,290 1,730,557 1,712,964 10.3 %(7.2)%
     Accrued interest and other liabilities521,580 508,342 519,336 323,134 422,311 2.6 %23.5 %
       Total Liabilities13,677,832 13,649,871 12,878,184 12,263,920 12,219,132 0.2 %11.9 %
SHAREHOLDERS' EQUITY
     Common stock1,637,489 1,635,070 1,633,950 1,640,771 1,639,333 0.1 %(0.1)%
     Retained earnings694,484 675,532 660,653 711,249 685,368 2.8 %1.3 %
     Accumulated other comprehensive income (loss)42,266 36,431 11,788 13,323 15,450 16.0 %173.6 %
     Treasury stock, at cost(126,424)(126,014)(127,008)(117,638)(78,838)0.3 %60.4 %
       Total Shareholders' Equity2,247,815 2,221,019 2,179,383 2,247,705 2,261,313 1.2 %(0.6)%
       Total Liabilities and Shareholders' Equity$15,925,647 $15,870,890 $15,057,567 $14,511,625 $14,480,445 0.3 %10.0 %
(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.

6

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly AveragesYear-to-Date Averages
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,Sep. 30,
2020202020202019201920202019
ASSETS
     Cash and due from banks$233,216 $284,726 $235,696 $221,060 $191,000 $251,147 $182,025 
     Interest-bearing deposits with other banks40,277 91,990 39,332 36,672 38,569 57,138 35,525 
     Investment securities3,162,832 3,164,243 3,115,723 3,102,867 3,290,666 3,147,655 3,351,559 
     Loans held for sale45,186 36,592 13,174 21,050 18,197 31,700 12,659 
     Loans and leases
       Commercial and industrial3,299,259 3,058,677 2,450,893 2,469,810 2,509,782 2,937,601 2,517,681 
       Lease financing78,500 81,218 85,782 91,225 94,858 81,821 93,467 
       Construction real estate536,870 495,407 501,471 501,892 509,742 511,343 488,002 
       Commercial real estate4,364,708 4,381,647 4,209,345 4,102,288 3,925,028 4,318,735 3,841,178 
       Residential real estate1,041,250 1,052,996 1,055,456 1,053,707 1,035,975 1,049,869 996,100 
       Home equity759,994 772,424 773,082 773,119 781,340 768,469 792,635 
       Installment82,016 79,016 81,234 85,515 88,760 80,760 89,927 
       Credit card45,609 44,402 50,206 50,616 50,410 46,735 49,255 
          Total loans10,208,206 9,965,787 9,207,469 9,128,172 8,995,895 9,795,333 8,868,245 
       Less:
          Allowance for credit losses (1)
165,270 155,454 121,126 56,649 61,911 147,349 59,129 
                Net loans 10,042,936 9,810,333 9,086,343 9,071,523 8,933,984 9,647,984 8,809,116 
     Premises and equipment211,454 213,903 215,545 215,171 215,671 213,626 213,540 
     Goodwill 937,771 937,771 937,771 937,710 899,888 937,771 886,130 
     Other intangibles69,169 72,086 75,014 78,190 51,365 72,079 43,019 
     Accrued interest and other assets1,099,169 1,098,560 805,824 776,045 681,174 1,001,542 593,042 
       Total Assets$15,842,010 $15,710,204 $14,524,422 $14,460,288 $14,320,514 $15,360,642 $14,126,615 
LIABILITIES
     Deposits
       Interest-bearing demand$2,668,635 $2,602,917 $2,418,193 $2,373,962 $2,325,405 $2,563,633 $2,310,095 
       Savings3,342,514 3,173,274 2,976,518 2,995,395 2,945,076 3,164,753 3,038,620 
       Time2,015,933 2,619,038 2,196,080 2,214,174 2,234,227 2,276,064 2,226,548 
          Total interest-bearing deposits8,027,082 8,395,229 7,590,791 7,583,531 7,504,708 8,004,450 7,575,263 
       Noninterest-bearing3,535,432 3,335,866 2,643,240 2,638,908 2,513,458 3,172,841 2,485,291 
          Total deposits11,562,514 11,731,095 10,234,031 10,222,439 10,018,166 11,177,291 10,060,554 
     Federal funds purchased and securities sold
          under agreements to repurchase150,088 145,291 164,093 206,800 185,156 153,146 138,692 
     FHLB short-term borrowings30,868 548,183 1,189,765 952,625 1,112,091 587,566 1,003,745 
          Total short-term borrowings180,956 693,474 1,353,858 1,159,425 1,297,247 740,712 1,142,437 
     Long-term debt1,338,792 579,345 381,909 454,271 519,736 768,770 545,279 
       Total borrowed funds1,519,748 1,272,819 1,735,767 1,613,696 1,816,983 1,509,482 1,687,716 
     Accrued interest and other liabilities529,326 520,425 344,891 379,046 275,038 465,116 227,400 
       Total Liabilities13,611,588 13,524,339 12,314,689 12,215,181 12,110,187 13,151,889 11,975,670 
SHAREHOLDERS' EQUITY
     Common stock1,636,107 1,634,405 1,638,851 1,640,066 1,629,286 1,636,453 1,625,851 
     Retained earnings679,980 658,312 660,108 691,236 662,899 666,184 636,613 
     Accumulated other comprehensive loss40,697 19,888 31,200 13,986 11,985 30,632 (13,377)
     Treasury stock, at cost(126,362)(126,740)(120,426)(100,181)(93,843)(124,516)(98,142)
       Total Shareholders' Equity2,230,422 2,185,865 2,209,733 2,245,107 2,210,327 2,208,753 2,150,945 
       Total Liabilities and Shareholders' Equity$15,842,010 $15,710,204 $14,524,422 $14,460,288 $14,320,514 $15,360,642 $14,126,615 
(1) Beginning January 1,2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on the incurred loss methodology.

7

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
 Quarterly AveragesYear-to-Date Averages
September 30, 2020June 30, 2020September 30, 2019September 30, 2020September 30, 2019
BalanceYieldBalanceYieldBalanceYieldBalanceYieldBalanceYield
Earning assets
    Investments:
      Investment securities$3,162,832 2.86 %$3,164,243 2.97 %$3,290,666 3.21 %$3,147,655 2.96 %$3,351,559 3.31 %
      Interest-bearing deposits with other banks40,277 0.31 %91,990 0.20 %38,569 2.28 %57,138 0.51 %35,525 2.40 %
    Gross loans (1)
10,253,392 4.00 %10,002,379 4.25 %9,014,092 5.58 %9,827,033 4.42 %8,880,904 5.66 %
       Total earning assets13,456,501 3.72 %13,258,612 3.91 %12,343,327 4.94 %13,031,826 4.05 %12,267,988 5.01 %
Nonearning assets
    Allowance for credit losses(165,270)(155,454)(61,911)(147,349)(59,129)
    Cash and due from banks233,216 284,726 191,000 251,147 182,025 
    Accrued interest and other assets2,317,563 2,322,320 1,848,098 2,225,018 1,735,731 
       Total assets$15,842,010 $15,710,204 $14,320,514 $15,360,642 $14,126,615 
Interest-bearing liabilities
    Deposits:
      Interest-bearing demand$2,668,635 0.08 %$2,602,917 0.11 %$2,325,405 0.56 %$2,563,633 0.21 %$2,310,095 0.55 %
      Savings3,342,514 0.14 %3,173,274 0.17 %2,945,076 0.69 %3,164,753 0.25 %3,038,620 0.74 %
      Time2,015,933 1.20 %2,619,038 1.49 %2,234,227 2.09 %2,276,064 1.54 %2,226,548 2.02 %
    Total interest-bearing deposits8,027,082 0.39 %8,395,229 0.56 %7,504,708 1.07 %8,004,450 0.60 %7,575,263 1.06 %
    Borrowed funds
      Short-term borrowings180,956 0.11 %693,474 0.74 %1,297,247 2.20 %740,712 1.16 %1,142,437 2.32 %
      Long-term debt1,338,792 1.76 %579,345 3.29 %519,736 3.63 %768,770 2.52 %545,279 3.62 %
        Total borrowed funds1,519,748 1.57 %1,272,819 1.90 %1,816,983 2.61 %1,509,482 1.85 %1,687,716 2.74 %
       Total interest-bearing liabilities9,546,830 0.58 %9,668,048 0.74 %9,321,691 1.37 %9,513,932 0.80 %9,262,979 1.37 %
Noninterest-bearing liabilities
    Noninterest-bearing demand deposits3,535,432 3,335,866 2,513,458 3,172,841 2,485,291 
    Other liabilities529,326 520,425 275,038 465,116 227,400 
    Shareholders' equity2,230,422 2,185,865 2,210,327 2,208,753 2,150,945 
       Total liabilities & shareholders' equity$15,842,010 $15,710,204 $14,320,514 $15,360,642 $14,126,615 
Net interest income $112,180 $111,576 $121,535 $338,038 $365,352 
Net interest spread 3.14 %3.17 %3.57 %3.25 %3.64 %
Net interest margin 3.32 %3.38 %3.91 %3.46 %3.98 %
Tax equivalent adjustment0.04 %0.06 %0.05 %0.06 %0.05 %
Net interest margin (fully tax equivalent)3.36 %3.44 %3.96 %3.52 %4.03 %
(1) Loans held for sale and nonaccrual loans are included in gross loans.
8

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
 Linked Qtr. Income Variance Comparable Qtr. Income VarianceYear-to-Date Income Variance
RateVolumeTotalRateVolumeTotalRateVolumeTotal
Earning assets
    Investment securities$(861)$238 $(623)$(2,926)$(921)$(3,847)$(8,771)$(4,521)$(13,292)
    Interest-bearing deposits with other banks23 (39)(16)(192)1 (191)(501)83 (418)
    Gross loans (2)
(6,273)3,622 (2,651)(36,016)12,479 (23,537)(82,566)31,283 (51,283)
       Total earning assets(7,111)3,821 (3,290)(39,134)11,559 (27,575)(91,838)26,845 (64,993)
Interest-bearing liabilities
    Total interest-bearing deposits$(3,593)$(272)$(3,865)$(12,778)$513 $(12,265)$(25,934)$1,930 $(24,004)
    Borrowed funds
    Short-term borrowings(1,081)(142)(1,223)(6,833)(315)(7,148)(9,915)(3,478)(13,393)
    Long-term debt(2,211)3,405 1,194 (2,449)3,642 1,193 (4,492)4,210 (282)
       Total borrowed funds(3,292)3,263 (29)(9,282)3,327 (5,955)(14,407)732 (13,675)
       Total interest-bearing liabilities(6,885)2,991 (3,894)(22,060)3,840 (18,220)(40,341)2,662 (37,679)
          Net interest income (1)
$(226)$830 $604 $(17,074)$7,719 $(9,355)$(51,497)$24,183 $(27,314)
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.


9

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
Nine months ended
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,Sep. 30,Sep. 30,
2020202020202019201920202019
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period$158,661 $143,885 $57,650 $56,552 $61,549 $57,650 $56,542 
 Day one adoption impact of ASC 3260 0 61,505 0 0 61,505 0 
  Provision for credit losses15,299 17,859 23,880 4,629 5,228 57,038 25,969 
  Gross charge-offs
    Commercial and industrial1,467 1,282 1,091 2,919 9,556 3,840 23,757 
    Lease financing852 0 0 62 0 852 100 
    Construction real estate0 0 0 0 0 0 0 
    Commercial real estate3,789 2,037 4 1,854 535 5,830 1,835 
    Residential real estate22 148 115 167 278 285 510 
    Home equity460 428 267 807 627 1,155 1,784 
    Installment59 7 61 31 65 127 192 
    Credit card171 234 311 319 598 716 1,228 
      Total gross charge-offs 6,820 4,136 1,849 6,159 11,659 12,805 29,406 
  Recoveries
    Commercial and industrial265 275 2,000 1,796 556 2,540 1,087 
    Lease financing6 0 0 0 0 6 0 
    Construction real estate0 14 0 0 0 14 68 
    Commercial real estate760 424 234 439 347 1,418 674 
    Residential real estate91 93 52 72 64 236 201 
    Home equity209 156 339 243 335 704 1,092 
    Installment35 27 31 49 93 93 202 
    Credit card38 64 43 29 39 145 123 
      Total recoveries1,404 1,053 2,699 2,628 1,434 5,156 3,447 
  Total net charge-offs5,416 3,083 (850)3,531 10,225 7,649 25,959 
Ending allowance for credit losses$168,544 $158,661 $143,885 $57,650 $56,552 $168,544 $56,552 
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
  Commercial and industrial0.14 %0.13 %(0.15)%0.18 %1.42 %0.06 %1.20 %
  Lease financing4.29 %0.00 %0.00 %0.27 %0.00 %1.38 %0.14 %
  Construction real estate0.00 %(0.01)%0.00 %0.00 %0.00 %0.00 %(0.02)%
  Commercial real estate0.28 %0.15 %(0.02)%0.14 %0.02 %0.14 %0.04 %
  Residential real estate(0.03)%0.02 %0.02 %0.04 %0.08 %0.01 %0.04 %
  Home equity0.13 %0.14 %(0.04)%0.29 %0.15 %0.08 %0.12 %
  Installment0.12 %(0.10)%0.15 %(0.08)%(0.13)%0.06 %(0.01)%
  Credit card1.16 %1.54 %2.15 %2.27 %4.40 %1.63 %3.00 %
     Total net charge-offs0.21 %0.12 %(0.04)%0.15 %0.45 %0.10 %0.39 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
  Nonaccrual loans (1)
    Commercial and industrial$34,686 $33,906 $21,126 $24,346 $28,358 $34,686 $28,358 
    Lease financing1,092 1,353 222 223 284 1,092 284 
    Construction real estate0 0 0 0 5 0 5 
    Commercial real estate24,521 14,002 10,050 7,295 14,889 24,521 14,889 
    Residential real estate12,104 12,813 11,163 10,892 11,655 12,104 11,655 
    Home equity5,374 5,604 5,821 5,242 5,427 5,374 5,427 
    Installment153 201 145 167 75 153 75 
      Nonaccrual loans77,930 67,879 48,527 48,165 60,693 77,930 60,693 
  Accruing troubled debt restructurings (TDRs)7,759 8,377 22,206 11,435 18,450 7,759 18,450 
     Total nonperforming loans85,689 76,256 70,733 59,600 79,143 85,689 79,143 
  Other real estate owned (OREO)1,643 1,872 1,467 2,033 1,613 1,643 1,613 
     Total nonperforming assets87,332 78,128 72,200 61,633 80,756 87,332 80,756 
  Accruing loans past due 90 days or more79 124 120 201 287 79 287 
     Total underperforming assets$87,411 $78,252 $72,320 $61,834 $81,043 $87,411 $81,043 
Total classified assets$134,002 $125,543 $124,510 $89,250 $132,500 $134,002 $132,500 
CREDIT QUALITY RATIOS
Allowance for credit losses to
     Nonaccrual loans216.28 %233.74 %296.51 %119.69 %93.18 %216.28 %93.18 %
     Nonperforming loans196.69 %208.06 %203.42 %96.73 %71.46 %196.69 %71.46 %
     Total ending loans1.65 %1.56 %1.55 %0.63 %0.62 %1.65 %0.62 %
Nonperforming loans to total loans0.84 %0.75 %0.76 %0.65 %0.87 %0.84 %0.87 %
Nonperforming assets to
     Ending loans, plus OREO0.86 %0.77 %0.78 %0.67 %0.89 %0.86 %0.89 %
     Total assets0.55 %0.49 %0.48 %0.42 %0.56 %0.55 %0.56 %
Nonperforming assets, excluding accruing TDRs to
     Ending loans, plus OREO0.78 %0.68 %0.54 %0.55 %0.69 %0.78 %0.69 %
     Total assets0.50 %0.44 %0.33 %0.35 %0.43 %0.50 %0.43 %
Classified assets to total assets0.84 %0.79 %0.83 %0.62 %0.92 %0.84 %0.92 %
(1) Nonaccrual loans include nonaccrual TDRs of $29.3 million, $32.7 million, $18.4 million, $18.5 million, and $21.5 million, as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
Nine months ended,
Sep. 30,June 30,Mar. 31,Dec. 31,Sep. 30,Sep. 30,Sep. 30,
2020202020202019201920202019
PER COMMON SHARE
Market Price
  High$15.15 $16.38 $25.52 $26.04 $25.49 $25.52 $28.56 
  Low$11.40 $11.52 $12.67 $23.24 $22.37 $11.40 $22.16 
  Close$12.01 $13.89 $14.91 $25.44 $24.48 $12.01 $24.48 
Average shares outstanding - basic97,247,080 97,220,748 97,736,690 98,684,706 98,517,025 97,400,942 98,177,802 
Average shares outstanding - diluted98,008,733 97,988,600 98,356,214 99,232,167 99,077,723 98,117,463 98,723,173 
Ending shares outstanding97,999,763 98,018,858 97,968,958 98,490,998 100,094,819 97,999,763 100,094,819 
Total shareholders' equity$2,247,815 $2,221,019 $2,179,383 $2,247,705 $2,261,313 $2,247,815 $2,261,313 
REGULATORY CAPITALPreliminaryPreliminary
Common equity tier 1 capital$1,293,716 $1,267,609 $1,243,152 $1,245,746 $1,253,803 $1,293,716 $1,253,803 
Common equity tier 1 capital ratio11.63 %11.49 %11.27 %11.30 %11.52 %11.63 %11.52 %
Tier 1 capital$1,336,497 $1,310,276 $1,285,705 $1,288,185 $1,296,399 $1,336,497 $1,296,399 
Tier 1 ratio12.02 %11.87 %11.66 %11.69 %11.91 %12.02 %11.91 %
Total capital$1,708,817 $1,676,532 $1,493,100 $1,475,813 $1,482,708 $1,708,817 $1,482,708 
Total capital ratio15.37 %15.19 %13.54 %13.39 %13.62 %15.37 %13.62 %
Total capital in excess of minimum requirement$541,263 $517,902 $335,229 $318,315 $339,935 $541,263 $339,935 
Total risk-weighted assets$11,119,560 $11,034,570 $11,027,347 $11,023,795 $10,883,554 $11,119,560 $10,883,554 
Leverage ratio9.55 %8.98 %9.49 %9.58 %9.75 %9.55 %9.75 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets14.11 %13.99 %14.47 %15.49 %15.62 %14.11 %15.62 %
Ending tangible shareholders' equity to ending tangible assets8.25 %8.09 %8.25 %9.07 %9.17 %8.25 %9.17 %
Average shareholders' equity to average assets14.08 %13.91 %15.21 %15.53 %15.43 %14.38 %15.23 %
Average tangible shareholders' equity to average tangible assets8.18 %7.94 %8.79 %9.07 %9.35 %8.29 %9.19 %
REPURCHASE PROGRAM (1)
Shares repurchased0 0 880,000 1,609,778 1,143,494 880,000 1,143,494 
Average share repurchase priceN/AN/A$18.96 $24.13 $23.94 $18.96 $23.94 
Total cost of shares repurchasedN/AN/A$16,686 $38,846 $27,372 $16,686 $27,372 
(1) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable
11