Document

Exhibit 99.1

First Financial Bancorp Announces Third Quarter 2023

Financial Results and Quarterly Dividend

•Earnings per diluted share of $0.66; $0.67 on an adjusted(1) basis; 10% increase YoY

•Return on average assets of 1.48%; 1.49% on an adjusted(1) basis

•Net interest margin on FTE basis(1) of 4.33%; 15 bp decrease from linked quarter

•Loan growth of $96.6 million; 3.6% on an annualized basis

•Average deposit balances increased 3.8% on an annualized basis, excluding brokered deposits

•Strong adjusted(1) fee income of $56.8 million driven by the leasing and wealth management

•Quarterly dividend of $0.23 approved by Board of Directors

Cincinnati, Ohio - October 24, 2023. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and nine months ended September 30, 2023.

For the three months ended September 30, 2023, the Company reported net income of $63.1 million, or $0.66 per diluted common share. These results compare to net income of $65.7 million, or $0.69 per diluted common share, for the second quarter of 2023. For the nine months ended September 30, 2023, First Financial had earnings per diluted share of $2.09 compared to $1.57 for the same period in 2022.

Return on average assets for the third quarter of 2023 was 1.48% while return on average tangible common equity was 23.60%(1). These compare to return on average assets of 1.55% and return on average tangible common equity of 25.27%(1) in the second quarter of 2023.

Third quarter 2023 highlights include:

•Net interest margin of 4.28%, or 4.33% on a fully tax-equivalent basis(1)

◦15 bp decrease to 4.33% from 4.48% in the second quarter due to increasing deposit costs

◦Higher asset yields significantly offset 37 bp increase in cost of deposits

◦Average deposit balances increased $73.3 million with growth in money market accounts and retail CDs offsetting declines in noninterest bearing checking and savings accounts

•Noninterest income of $56.6 million, or $56.8 million as adjusted(1)

◦Foreign exchange income of $13.4 million reflected continued strong activity

◦Record wealth management fees of $6.9 million; 3.4% increase from linked quarter

◦Leasing business income of $14.5 million; 41.6% increase from linked quarter

◦Adjusted(1) $0.2 million for losses on investment securities and other items not expected to recur

•Noninterest expenses of $122.0 million, or $121.5 million as adjusted(1)

◦$1.4 million increase from linked quarter driven primarily by higher employee costs, leasing expenses and fraud losses

◦Second quarter adjustments(1) include costs related to our online banking conversion and other costs not expected to recur such as acquisition, severance and branch consolidation costs

◦Efficiency ratio of 57.5%; 57.3% as adjusted(1)

______________________________________________________________________________

(1) Non-GAAP measure. 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.

(2) The consolidated balance sheets at December 31, 2022 and September 30, 2022 include assets acquired and liabilities assumed in the acquisition of Summit Financial Group. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. These fair value measurements were considered final as of December 31, 2022.

•Moderate loan growth during the quarter

◦Loan balances increased $96.6 million compared to the first quarter

◦Growth of 3.6% on an annualized basis

◦Residential mortgages and finance leases drove quarterly growth

•Total Allowance for Credit Losses of $162.2 million; Total quarterly provision expense of $11.7 million

◦Loans and leases - ACL of $145.2 million; decreased 5 bps to 1.36% of total loans

◦Unfunded Commitments - ACL of $17.0 million

◦Provision expense driven by net charge-offs; Classified assets increased slightly to $140.6 million

◦Net charge-offs 61 bps of total loans and included $6.1 million from loan sale and $6.9 million from a COVID impacted business

•Capital ratios remain solid

◦Total capital ratio increased 7 bps to 13.51%

◦Tier 1 common equity increased 26 bps to 11.60%

◦Tangible common equity decreased 6 bps to 6.50%(1); 9.07%(1) excluding impact from AOCI

◦Tangible book value per share of $10.91(1)

Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on December 15, 2023 to shareholders of record as of December 1, 2023.

Archie Brown, President and CEO, commented on the quarter, “Overall, I am pleased with our third quarter performance. Strong net interest income and robust fee income led to a 13% increase in net income from the third quarter of 2022. Adjusted return on assets was 1.49% and adjusted return on average tangible common equity was 23.8%. As expected, higher deposit costs led to a slight reduction in earnings on a linked quarter basis. Even so, our net interest margin was 4.33% for the quarter, which was at the high end of our expectations.”

Mr. Brown continued, “Loan growth was in line with expectations for the period, led by growth in the Leasing and Mortgage portfolios. We expect moderate loan growth over the remainder of the year. Deposit balances were stable during the quarter. While the change in mix from non-interest bearing to CDs and Money Market accounts continued, we experienced slight growth in total balances and our loan to deposit ratio remained flat at 82%. Our fee income continued to exceed expectations this quarter, with strong performance from wealth management, equipment leasing, Bannockburn, and mortgage banking.”

Mr. Brown commented on asset quality, "Credit trends were mixed during the period, and we experienced elevated net charge-offs. During the third quarter we elected to sell approximately $32 million in commercial real estate loans and incurred a $6.1 million loss on the sale. We also recorded a $6.9 million loss on a large C&I loan that was negatively impacted during Covid and has been unable to rebound in the period since. Additionally, nonaccrual loan balances increased during the period due to the downgrade of one office loan whose major tenant vacated the space during the quarter. Classified Assets remain low and we expect provision expense to to be fairly stable in the fourth quarter.”

Mr. Brown concluded, "We remain pleased with our high net interest margin, favorable fee income trends and robust earnings. During the quarter, our regulatory capital levels strengthened, and our strong earnings helped to maintain the tangible common equity ratio despite the negative impact to AOCI from the increase in market rates. We are encouraged by our performance in 2023 and we believe we are well positioned to navigate the current economic environment and continue to deliver strong results.”

Full detail of the Company’s third quarter 2023 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 Wednesday, October 25, 2023 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 (U.S. toll free), (647) 362-9199 (U.S. local), access code 5048068. The recording will be available until November 8, 2023. 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. 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 Statements

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 changes in housing prices, fluctuations in 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 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, 2022, 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, 2023, the Company had $17.1 billion in assets, $10.6 billion in loans, $12.9 billion in deposits and $2.1 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 $3.3 billion in assets under management as of September 30, 2023. The Company operated 130 full service banking centers as of September 30, 2023, located 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.

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

Selected Financial Information

September 30, 2023

(unaudited)


Contents			Page
Consolidated Financial Highlights			2
Consolidated Quarterly Statements of Income			3
Consolidated Quarterly Statements of Income			4-5
Consolidated Statements of Condition			6
Average Consolidated Statements of Condition			7
Net Interest Margin Rate / Volume Analysis			8-9
Credit Quality			10
Capital Adequacy			11


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,			Sep. 30,
	2023			2023			2023			2022			2022			2023			2022
RESULTS OF OPERATIONS
Net income	$	63,061		$	65,667		$	70,403		$	69,086		$	55,705		$	199,131		$	148,526
Net earnings per share - basic	$	0.67		$	0.70		$	0.75		$	0.74		$	0.60		$	2.12		$	1.59
Net earnings per share - diluted	$	0.66		$	0.69		$	0.74		$	0.73		$	0.59		$	2.09		$	1.57
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.69		$	0.69

KEY FINANCIAL RATIOS
Return on average assets	1.48		%	1.55		%	1.69		%	1.63		%	1.35		%	1.57		%	1.22		%
Return on average shareholders' equity	11.62		%	12.32		%	13.71		%	13.64		%	10.58		%	12.53		%	9.29		%
Return on average tangible shareholders' equity (1)	23.60		%	25.27		%	29.02		%	29.93		%	22.29		%	25.87		%	19.14		%

Net interest margin	4.28		%	4.43		%	4.51		%	4.43		%	3.93		%	4.41		%	3.49		%
Net interest margin (fully tax equivalent) (1)(2)	4.33		%	4.48		%	4.55		%	4.47		%	3.98		%	4.45		%	3.53		%

Ending shareholders' equity as a percent of ending assets	12.49		%	12.54		%	12.53		%	12.01		%	12.00		%	12.49		%	12.00		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	6.50		%	6.56		%	6.47		%	5.95		%	5.79		%	6.50		%	5.79		%
Risk-weighted assets (1)	7.88		%	8.03		%	7.87		%	7.32		%	7.21		%	7.88		%	7.21		%

Average shareholders' equity as a percent of average assets	12.70		%	12.60		%	12.29		%	11.98		%	12.75		%	12.53		%	13.15		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)	6.69		%	6.57		%	6.21		%	5.84		%	6.49		%	6.49		%	6.85		%

Book value per share	$	22.39		$	22.52		$	22.29		$	21.51		$	21.03		$	22.39		$	21.03
Tangible book value per share (1)	$	10.91		$	11.02		$	10.76		$	9.97		$	9.48		$	10.91		$	9.48

Common equity tier 1 ratio (3)	11.60		%	11.34		%	11.00		%	10.83		%	10.82		%	11.60		%	10.82		%
Tier 1 ratio (3)	11.94		%	11.68		%	11.34		%	11.17		%	11.17		%	11.94		%	11.17		%
Total capital ratio (3)	13.51		%	13.44		%	13.11		%	13.09		%	13.15		%	13.51		%	13.15		%
Leverage ratio (3)	9.59		%	9.33		%	9.03		%	8.89		%	8.88		%	9.59		%	8.88		%

AVERAGE BALANCE SHEET ITEMS
Loans (4)	$	10,623,734		$	10,513,505		$	10,373,302		$	10,059,119		$	9,597,197		$	10,504,431		$	9,411,807

Investment securities	3,394,237			3,560,453			3,635,317			3,705,304			4,003,472			3,529,119			4,142,157
Interest-bearing deposits with other banks	386,173			329,584			318,026			372,054			317,146			344,844			295,174
Total earning assets	$	14,404,144		$	14,403,542		$	14,326,645		$	14,136,477		$	13,917,815		$	14,378,394		$	13,849,138
Total assets	$	16,951,389		$	16,968,055		$	16,942,999		$	16,767,598		$	16,385,989		$	16,954,178		$	16,253,031
Noninterest-bearing deposits	$	3,493,305		$	3,663,419		$	3,954,915		$	4,225,192		$	4,176,242		$	3,702,189		$	4,187,145
Interest-bearing deposits	9,293,860			9,050,464			8,857,226			8,407,114			8,194,781			9,068,783			8,375,581
Total deposits	$	12,787,165		$	12,713,883		$	12,812,141		$	12,632,306		$	12,371,023		$	12,770,972		$	12,562,726
Borrowings	$	1,403,071		$	1,523,699		$	1,434,338		$	1,489,088		$	1,406,718		$	1,453,588		$	1,071,845
Shareholders' equity	$	2,153,601		$	2,137,765		$	2,082,210		$	2,009,564		$	2,089,179		$	2,124,787		$	2,137,615

CREDIT QUALITY RATIOS
Allowance to ending loans	1.36		%	1.41		%	1.36		%	1.29		%	1.27		%	1.36		%	1.27		%
Allowance to nonaccrual loans	193.75		%	276.70		%	409.46		%	464.58		%	341.61		%	193.75		%	341.61		%
Allowance to nonperforming loans	193.75		%	276.70		%	409.46		%	335.94		%	262.09		%	193.75		%	262.09		%
Nonperforming loans to total loans	0.70		%	0.51		%	0.33		%	0.38		%	0.48		%	0.70		%	0.48		%
Nonaccrual loans to total loans	0.70		%	0.51		%	0.33		%	0.28		%	0.37		%	0.70		%	0.37		%
Nonperforming assets to ending loans, plus OREO	0.71		%	0.51		%	0.33		%	0.39		%	0.48		%	0.71		%	0.48		%
Nonperforming assets to total assets	0.44		%	0.32		%	0.21		%	0.23		%	0.28		%	0.44		%	0.28		%
Classified assets to total assets	0.82		%	0.81		%	0.94		%	0.75		%	0.69		%	0.82		%	0.69		%
Net charge-offs to average loans (annualized)	0.61		%	0.22		%	0.00		%	(0.01)		%	0.07		%	0.28		%	0.08		%

(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 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.

(3) September 30, 2023 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.


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

	Three months ended,								Nine months ended,
	Sep. 30,								Sep. 30,
	2023			2022			% Change		2023			2022			% Change
Interest income
Loans and leases, including fees	$	192,261		$	122,170		57.4	%	$	546,354		$	306,443		78.3	%
Investment securities
Taxable	31,297			26,331			18.9	%	95,226			72,066			32.1	%
Tax-exempt	3,522			5,014			(29.8)	%	10,499			14,361			(26.9)	%
Total investment securities interest	34,819			31,345			11.1	%	105,725			86,427			22.3	%
Other earning assets	5,011			1,597			213.8	%	12,488			2,222			462.0	%
Total interest income	232,091			155,112			49.6	%	664,567			395,092			68.2	%

Interest expense
Deposits	57,069			6,386			793.7	%	132,817			11,972			1,009.4	%
Short-term borrowings	14,615			6,158			137.3	%	43,101			8,041			436.0	%
Long-term borrowings	4,952			4,676			5.9	%	14,644			13,832			5.9	%
Total interest expense	76,636			17,220			345.0	%	190,562			33,845			463.0	%
Net interest income	155,455			137,892			12.7	%	474,005			361,247			31.2	%
Provision for credit losses-loans and leases	12,907			7,898			63.4	%	34,270			(1,958)			N/M
Provision for credit losses-unfunded commitments	(1,234)			386			(419.7)	%	(1,393)			3,641			(138.3)	%
Net interest income after provision for credit losses	143,782			129,608			10.9	%	441,128			359,564			22.7	%

Noninterest income
Service charges on deposit accounts	6,957			6,279			10.8	%	20,443			21,656			(5.6)	%
Wealth management fees	6,943			5,487			26.5	%	19,990			17,858			11.9	%
Bankcard income	3,406			3,484			(2.2)	%	10,690			10,644			0.4	%
Client derivative fees	1,612			1,447			11.4	%	4,444			3,619			22.8	%
Foreign exchange income	13,384			11,752			13.9	%	45,321			35,373			28.1	%
Leasing business income	14,537			7,127			104.0	%	38,466			20,450			88.1	%
Net gains from sales of loans	4,086			3,729			9.6	%	10,260			12,842			(20.1)	%
Net gain (loss) on sale of investment securities	(4)			(179)			(97.8)	%	(407)			(176)			131.3	%
Net gain (loss) on equity securities	(54)			(701)			(92.3)	%	4			(1,954)			(100.2)	%


Other	5,761			4,109			40.2	%	16,218			13,294			22.0	%
Total noninterest income	56,628			42,534			33.1	%	165,429			133,606			23.8	%

Noninterest expenses
Salaries and employee benefits	75,641			66,808			13.2	%	222,094			195,747			13.5	%

Net occupancy	5,809			5,669			2.5	%	17,100			16,774			1.9	%
Furniture and equipment	3,341			3,222			3.7	%	10,020			9,990			0.3	%
Data processing	8,473			8,497			(0.3)	%	27,364			25,095			9.0	%
Marketing	2,598			2,523			3.0	%	7,560			6,546			15.5	%
Communication	744			657			13.2	%	2,022			1,993			1.5	%
Professional services	2,524			2,346			7.6	%	6,778			6,719			0.9	%

State intangible tax	981			1,090			(10.0)	%	2,930			3,311			(11.5)	%
FDIC assessments	2,665			1,885			41.4	%	8,297			5,021			65.2	%
Intangible amortization	2,600			2,783			(6.6)	%	7,801			8,612			(9.4)	%
Leasing business expense	8,877			5,746			54.5	%	23,545			14,302			64.6	%
Other	7,791			23,842			(67.3)	%	23,841			36,797			(35.2)	%
Total noninterest expenses	122,044			125,068			(2.4)	%	359,352			330,907			8.6	%
Income before income taxes	78,366			47,074			66.5	%	247,205			162,263			52.3	%
Income tax expense (benefit)	15,305			(8,631)			(277.3)	%	48,074			13,737			250.0	%
Net income	$	63,061		$	55,705		13.2	%	$	199,131		$	148,526		34.1	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.67		$	0.60				$	2.12		$	1.59
Net earnings per share - diluted	$	0.66		$	0.59				$	2.09		$	1.57
Dividends declared per share	$	0.23		$	0.23				$	0.69		$	0.69

Return on average assets	1.48		%	1.35		%			1.57		%	1.22		%
Return on average shareholders' equity	11.62		%	10.58		%			12.53		%	9.29		%

Interest income	$	232,091		$	155,112		49.6	%	$	664,567		$	395,092		68.2	%
Tax equivalent adjustment	1,659			1,712			(3.1)	%	4,684			4,804			(2.5)	%
Interest income - tax equivalent	233,750			156,824			49.1	%	669,251			399,896			67.4	%
Interest expense	76,636			17,220			345.0	%	190,562			33,845			463.0	%
Net interest income - tax equivalent	$	157,114		$	139,604		12.5	%	$	478,689		$	366,051		30.8	%

Net interest margin	4.28		%	3.93		%			4.41		%	3.49		%
Net interest margin (fully tax equivalent) (1)	4.33		%	3.98		%			4.45		%	3.53		%

Full-time equivalent employees	2,121			2,072

(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 QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2023
	Third			Second			First			Year to			% Change
	Quarter			Quarter			Quarter			Date			Linked Qtr.
Interest income
Loans and leases, including fees	$	192,261		$	184,387		$	169,706		$	546,354		4.3	%
Investment securities
Taxable	31,297			32,062			31,867			95,226			(2.4)	%
Tax-exempt	3,522			3,513			3,464			10,499			0.3	%
Total investment securities interest	34,819			35,575			35,331			105,725			(2.1)	%
Other earning assets	5,011			3,933			3,544			12,488			27.4	%
Total interest income	232,091			223,895			208,581			664,567			3.7	%

Interest expense
Deposits	57,069			44,292			31,456			132,817			28.8	%
Short-term borrowings	14,615			15,536			12,950			43,101			(5.9)	%
Long-term borrowings	4,952			4,835			4,857			14,644			2.4	%
Total interest expense	76,636			64,663			49,263			190,562			18.5	%
Net interest income	155,455			159,232			159,318			474,005			(2.4)	%
Provision for credit losses-loans and leases	12,907			12,719			8,644			34,270			1.5	%
Provision for credit losses-unfunded commitments	(1,234)			(1,994)			1,835			(1,393)			(38.1)	%
Net interest income after provision for credit losses	143,782			148,507			148,839			441,128			(3.2)	%

Noninterest income
Service charges on deposit accounts	6,957			6,972			6,514			20,443			(0.2)	%
Wealth management fees	6,943			6,713			6,334			19,990			3.4	%
Bankcard income	3,406			3,692			3,592			10,690			(7.7)	%
Client derivative fees	1,612			1,827			1,005			4,444			(11.8)	%
Foreign exchange income	13,384			15,039			16,898			45,321			(11.0)	%
Leasing business income	14,537			10,265			13,664			38,466			41.6	%
Net gains from sales of loans	4,086			3,839			2,335			10,260			6.4	%
Net gain (loss) on sale of investment securities	(4)			(384)			(19)			(407)			(99.0)	%
Net gain (loss) on equity securities	(54)			(82)			140			4			34.1	%
Other	5,761			5,377			5,080			16,218			7.1	%
Total noninterest income	56,628			53,258			55,543			165,429			6.3	%

Noninterest expenses
Salaries and employee benefits	75,641			74,199			72,254			222,094			1.9	%
Net occupancy	5,809			5,606			5,685			17,100			3.6	%
Furniture and equipment	3,341			3,362			3,317			10,020			(0.6)	%
Data processing	8,473			9,871			9,020			27,364			(14.2)	%
Marketing	2,598			2,802			2,160			7,560			(7.3)	%
Communication	744			644			634			2,022			15.5	%
Professional services	2,524			2,308			1,946			6,778			9.4	%
State intangible tax	981			964			985			2,930			1.8	%
FDIC assessments	2,665			2,806			2,826			8,297			(5.0)	%
Intangible amortization	2,600			2,601			2,600			7,801			0.0	%
Leasing business expense	8,877			6,730			7,938			23,545			31.9	%
Other	7,791			8,722			7,328			23,841			(10.7)	%
Total noninterest expenses	122,044			120,615			116,693			359,352			1.2	%
Income before income taxes	78,366			81,150			87,689			247,205			(3.4)	%
Income tax expense (benefit)	15,305			15,483			17,286			48,074			(1.1)	%
Net income	$	63,061		$	65,667		$	70,403		$	199,131		(4.0)	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.67		$	0.70		$	0.75		$	2.12
Net earnings per share - diluted	$	0.66		$	0.69		$	0.74		$	2.09
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.69

Return on average assets	1.48		%	1.55		%	1.69		%	1.57		%
Return on average shareholders' equity	11.62		%	12.32		%	13.71		%	12.53		%

Interest income	$	232,091		$	223,895		$	208,581		$	664,567		3.7	%
Tax equivalent adjustment	1,659			1,601			1,424			4,684			3.6	%
Interest income - tax equivalent	233,750			225,496			210,005			669,251			3.7	%
Interest expense	76,636			64,663			49,263			190,562			18.5	%
Net interest income - tax equivalent	$	157,114		$	160,833		$	160,742		$	478,689		(2.3)	%

Net interest margin	4.28		%	4.43		%	4.51		%	4.41		%
Net interest margin (fully tax equivalent) (1)	4.33		%	4.48		%	4.55		%	4.45		%

Full-time equivalent employees	2,121			2,193			2,066

(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 QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2022
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans and leases, including fees	$	152,299		$	122,170		$	97,091		$	87,182		$	458,742
Investment securities
Taxable	30,248			26,331			23,639			22,096			102,314
Tax-exempt	4,105			5,014			4,916			4,431			18,466
Total investment securities interest	34,353			31,345			28,555			26,527			120,780
Other earning assets	3,262			1,597			505			120			5,484
Total interest income	189,914			155,112			126,151			113,829			585,006

Interest expense
Deposits	16,168			6,386			2,963			2,623			28,140
Short-term borrowings	11,091			6,158			1,566			317			19,132
Long-term borrowings	4,759			4,676			4,612			4,544			18,591
Total interest expense	32,018			17,220			9,141			7,484			65,863
Net interest income	157,896			137,892			117,010			106,345			519,143
Provision for credit losses-loans and leases	8,689			7,898			(4,267)			(5,589)			6,731
Provision for credit losses-unfunded commitments	1,341			386			3,481			(226)			4,982
Net interest income after provision for credit losses	147,866			129,608			117,796			112,160			507,430

Noninterest income
Service charges on deposit accounts	6,406			6,279			7,648			7,729			28,062
Wealth management fees	5,648			5,487			6,311			6,060			23,506
Bankcard income	3,736			3,484			3,823			3,337			14,380
Client derivative fees	1,822			1,447			1,369			803			5,441
Foreign exchange income	19,592			11,752			13,470			10,151			54,965
Leasing business income	11,124			7,127			7,247			6,076			31,574
Net gains from sales of loans	2,206			3,729			5,241			3,872			15,048
Net gain (loss) on sale of investment securities	(393)			(179)			0			3			(569)
Net gain (loss) on equity securities	1,315			(701)			(1,054)			(199)			(639)
Other	4,579			4,109			5,723			3,462			17,873
Total noninterest income	56,035			42,534			49,778			41,294			189,641

Noninterest expenses
Salaries and employee benefits	73,621			66,808			64,992			63,947			269,368
Net occupancy	5,434			5,669			5,359			5,746			22,208
Furniture and equipment	3,234			3,222			3,201			3,567			13,224
Data processing	8,567			8,497			8,334			8,264			33,662
Marketing	2,198			2,523			2,323			1,700			8,744
Communication	690			657			670			666			2,683
Professional services	3,015			2,346			2,214			2,159			9,734
State intangible tax	974			1,090			1,090			1,131			4,285
FDIC assessments	2,173			1,885			1,677			1,459			7,194
Intangible amortization	2,573			2,783			2,915			2,914			11,185
Leasing business expense	6,061			5,746			4,687			3,869			20,363
Other	15,902			23,842			5,572			7,383			52,699
Total noninterest expenses	124,442			125,068			103,034			102,805			455,349
Income before income taxes	79,459			47,074			64,540			50,649			241,722
Income tax expense (benefit)	10,373			(8,631)			13,020			9,348			24,110
Net income	$	69,086		$	55,705		$	51,520		$	41,301		$	217,612

ADDITIONAL DATA
Net earnings per share - basic	$	0.74		$	0.60		$	0.55		$	0.44		$	2.33
Net earnings per share - diluted	$	0.73		$	0.59		$	0.55		$	0.44		$	2.30
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.92

Return on average assets	1.63		%	1.35		%	1.28		%	1.03		%	1.33		%
Return on average shareholders' equity	13.64		%	10.58		%	9.84		%	7.53		%	10.34		%

Interest income	$	189,914		$	155,112		$	126,151		$	113,829		$	585,006
Tax equivalent adjustment	1,553			1,712			1,625			1,467			6,357
Interest income - tax equivalent	191,467			156,824			127,776			115,296			591,363
Interest expense	32,018			17,220			9,141			7,484			65,863
Net interest income - tax equivalent	$	159,449		$	139,604		$	118,635		$	107,812		$	525,500

Net interest margin	4.43		%	3.93		%	3.41		%	3.11		%	3.73		%
Net interest margin (fully tax equivalent) (1)	4.47		%	3.98		%	3.45		%	3.16		%	3.77		%

Full-time equivalent employees	2,070			2,072			2,096			2,050

(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)

	Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Sep. 30,		% Change		% Change
	2023		2023		2023		2022		2022		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$	220,335	$	217,385	$	199,835	$	207,501	$	195,553	1.4	%	12.7	%
Interest-bearing deposits with other banks	452,867		485,241		305,465		388,182		338,978		(6.7)	%	33.6	%
Investment securities available-for-sale	3,044,361		3,249,404		3,384,949		3,409,648		3,531,353		(6.3)	%	(13.8)	%
Investment securities held-to-maturity	81,236		82,372		83,070		84,021		85,823		(1.4)	%	(5.3)	%
Other investments	133,725		141,892		143,606		143,160		138,767		(5.8)	%	(3.6)	%
Loans held for sale	12,391		15,267		9,280		7,918		10,684		(18.8)	%	16.0	%
Loans and leases
Commercial and industrial	3,420,873		3,433,162		3,449,289		3,410,272		3,139,219		(0.4)	%	9.0	%
Lease financing	399,973		360,801		273,898		236,124		176,072		10.9	%	127.2	%
Construction real estate	578,824		536,464		525,906		512,050		489,446		7.9	%	18.3	%
Commercial real estate	3,992,654		4,048,460		4,056,627		4,052,759		3,976,345		(1.4)	%	0.4	%
Residential real estate	1,293,470		1,221,484		1,145,069		1,092,265		1,024,596		5.9	%	26.2	%
Home equity	743,991		728,711		724,672		733,791		737,318		2.1	%	0.9	%
Installment	160,648		165,216		204,372		209,895		202,267		(2.8)	%	(20.6)	%
Credit card	56,386		55,911		53,552		51,815		52,173		0.8	%	8.1	%
Total loans	10,646,819		10,550,209		10,433,385		10,298,971		9,797,436		0.9	%	8.7	%
Less:
Allowance for credit losses	(145,201)		(148,646)		(141,591)		(132,977)		(124,096)		(2.3)	%	17.0	%
Net loans	10,501,618		10,401,563		10,291,794		10,165,994		9,673,340		1.0	%	8.6	%
Premises and equipment	192,572		192,077		188,959		189,080		189,067		0.3	%	1.9	%
Operating leases	136,883		132,272		153,986		91,738		84,851		3.5	%	61.3	%
Goodwill	1,005,868		1,005,828		1,005,738		1,001,507		998,422		0.0	%	0.7	%
Other intangibles	86,378		88,662		91,169		93,919		96,528		(2.6)	%	(10.5)	%

Accrued interest and other assets	1,186,618		1,078,186		1,076,033		1,220,648		1,280,427		10.1	%	(7.3)	%
Total Assets	$	17,054,852	$	17,090,149	$	16,933,884	$	17,003,316	$	16,623,793	(0.2)	%	2.6	%

LIABILITIES
Deposits
Interest-bearing demand	$	2,880,617	$	2,919,472	$	2,761,811	$	3,037,153	$	2,980,465	(1.3)	%	(3.4)	%
Savings	4,023,455		3,785,445		3,746,403		3,828,139		3,980,020		6.3	%	1.1	%
Time	2,572,909		2,484,780		2,336,368		1,700,705		1,242,412		3.5	%	107.1	%
Total interest-bearing deposits	9,476,981		9,189,697		8,844,582		8,565,997		8,202,897		3.1	%	15.5	%
Noninterest-bearing	3,438,572		3,605,181		3,830,102		4,135,180		4,137,038		(4.6)	%	(16.9)	%
Total deposits	12,915,553		12,794,878		12,674,684		12,701,177		12,339,935		0.9	%	4.7	%
Federal funds purchased and securities sold
under agreements to repurchase	0		0		0		0		3,535		0.0	%	100.0	%
FHLB short-term borrowings	755,000		1,050,300		1,089,400		1,130,000		972,600		(28.1)	%	(22.4)	%
Other	219,188		165,983		128,160		157,156		184,912		32.1	%	18.5	%
Total short-term borrowings	974,188		1,216,283		1,217,560		1,287,156		1,161,047		(19.9)	%	(16.1)	%
Long-term debt	340,902		339,963		342,647		346,672		355,116		0.3	%	(4.0)	%
Total borrowed funds	1,315,090		1,556,246		1,560,207		1,633,828		1,516,163		(15.5)	%	(13.3)	%
Accrued interest and other liabilities	694,700		595,606		577,497		626,938		773,563		16.6	%	(10.2)	%
Total Liabilities	14,925,343		14,946,730		14,812,388		14,961,943		14,629,661		(0.1)	%	2.0	%

SHAREHOLDERS' EQUITY
Common stock	1,636,054		1,632,659		1,629,428		1,634,605		1,631,696		0.2	%	0.3	%
Retained earnings	1,101,905		1,060,715		1,016,893		968,237		920,943		3.9	%	19.6	%
Accumulated other comprehensive income (loss)	(410,005)		(353,010)		(328,059)		(358,663)		(354,570)		16.1	%	15.6	%
Treasury stock, at cost	(198,445)		(196,945)		(196,766)		(202,806)		(203,937)		0.8	%	(2.7)	%
Total Shareholders' Equity	2,129,509		2,143,419		2,121,496		2,041,373		1,994,132		(0.6)	%	6.8	%
Total Liabilities and Shareholders' Equity	$	17,054,852	$	17,090,149	$	16,933,884	$	17,003,316	$	16,623,793	(0.2)	%	2.6	%


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

	Quarterly Averages										Year-to-Date Averages
	Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,
	2023		2023		2023		2022		2022		2023		2022
ASSETS
Cash and due from banks	$	211,670	$	221,527	$	218,724	$	218,216	$	228,068	$	217,281	$	239,219

Interest-bearing deposits with other banks	386,173		329,584		318,026		372,054		317,146		344,844		295,174
Investment securities	3,394,237		3,560,453		3,635,317		3,705,304		4,003,472		3,529,119		4,142,157
Loans held for sale	15,420		11,856		5,531		8,639		12,283		10,972		14,427
Loans and leases
Commercial and industrial	3,443,615		3,469,683		3,456,681		3,249,252		3,040,547		3,456,612		2,888,291
Lease financing	371,598		323,819		252,219		203,790		158,667		316,316		136,392
Construction real estate	547,884		518,190		536,294		501,787		469,489		534,165		468,108
Commercial real estate	4,024,798		4,050,946		4,017,021		4,028,944		3,969,935		4,030,950		4,044,214
Residential real estate	1,260,249		1,181,053		1,115,889		1,066,859		998,476		1,186,259		946,417
Home equity	735,251		726,333		728,185		735,039		728,791		729,949		716,333
Installment	164,092		172,147		205,934		208,484		164,063		180,571		143,403
Credit card	60,827		59,478		55,548		56,325		54,946		58,637		54,222
Total loans	10,608,314		10,501,649		10,367,771		10,050,480		9,584,914		10,493,459		9,397,380
Less:
Allowance for credit losses	(150,297)		(145,578)		(136,419)		(127,541)		(119,000)		(144,149)		(124,145)
Net loans	10,458,017		10,356,071		10,231,352		9,922,939		9,465,914		10,349,310		9,273,235
Premises and equipment	194,228		190,583		190,346		189,342		190,738		191,733		191,814
Operating leases	132,984		138,725		107,092		88,365		83,970		126,362		73,126
Goodwill	1,005,844		1,005,791		1,005,713		998,575		999,690		1,005,783		999,960
Other intangibles	87,427		89,878		92,587		95,256		97,781		89,945		100,370

Accrued interest and other assets	1,065,389		1,063,587		1,138,311		1,168,908		986,927		1,088,829		923,549
Total Assets	$	16,951,389	$	16,968,055	$	16,942,999	$	16,767,598	$	16,385,989	$	16,954,178	$	16,253,031

LIABILITIES
Deposits
Interest-bearing demand	$	2,927,416	$	2,906,855	$	2,906,712	$	3,103,091	$	3,105,547	$	2,913,737	$	3,177,253
Savings	3,919,590		3,749,902		3,818,807		3,943,342		4,036,565		3,829,802		4,085,787
Time	2,446,854		2,393,707		2,131,707		1,360,681		1,052,669		2,325,244		1,112,541
Total interest-bearing deposits	9,293,860		9,050,464		8,857,226		8,407,114		8,194,781		9,068,783		8,375,581
Noninterest-bearing	3,493,305		3,663,419		3,954,915		4,225,192		4,176,242		3,702,189		4,187,145
Total deposits	12,787,165		12,713,883		12,812,141		12,632,306		12,371,023		12,770,972		12,562,726
Federal funds purchased and securities sold
under agreements to repurchase	10,788		21,881		26,380		16,167		32,637		19,626		34,028
FHLB short-term borrowings	878,199		1,028,207		925,144		944,320		892,786		943,678		581,470
Other	175,682		132,088		139,195		184,439		131,237		149,122		91,654
Total short-term borrowings	1,064,669		1,182,176		1,090,719		1,144,926		1,056,660		1,112,426		707,152
Long-term debt	338,402		341,523		343,619		344,162		350,058		341,162		364,693
Total borrowed funds	1,403,071		1,523,699		1,434,338		1,489,088		1,406,718		1,453,588		1,071,845
Accrued interest and other liabilities	607,552		592,708		614,310		636,640		519,069		604,831		480,845
Total Liabilities	14,797,788		14,830,290		14,860,789		14,758,034		14,296,810		14,829,391		14,115,416

SHAREHOLDERS' EQUITY
Common stock	1,634,102		1,631,230		1,633,396		1,632,941		1,631,078		1,632,912		1,635,103
Retained earnings	1,076,515		1,034,092		989,777		941,987		899,524		1,033,779		869,574
Accumulated other comprehensive loss	(358,769)		(330,263)		(339,450)		(361,284)		(236,566)		(342,898)		(156,047)
Treasury stock, at cost	(198,247)		(197,294)		(201,513)		(204,080)		(204,857)		(199,006)		(211,015)
Total Shareholders' Equity	2,153,601		2,137,765		2,082,210		2,009,564		2,089,179		2,124,787		2,137,615
Total Liabilities and Shareholders' Equity	$	16,951,389	$	16,968,055	$	16,942,999	$	16,767,598	$	16,385,989	$	16,954,178	$	16,253,031


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

	Quarterly Averages																				Year-to-Date Averages
	September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023	September 30, 2022
	Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield				Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities	$	3,394,237	$	34,819	4.07	%	$	3,560,453	$	35,575	4.01	%	$	4,003,472	$	31,345	3.11	%			$	3,529,119	4.01	%	$	4,142,157	2.79	%
Interest-bearing deposits with other banks	386,173		5,011		5.15	%	329,584		3,933		4.79	%	317,146		1,597		2.00	%			344,844		4.84	%	295,174		1.01	%
Gross loans (1)	10,623,734		192,261		7.18	%	10,513,505		184,387		7.03	%	9,597,197		122,170		5.05	%			10,504,431		6.95	%	9,411,807		4.35	%
Total earning assets	14,404,144		232,091		6.39	%	14,403,542		223,895		6.23	%	13,917,815		155,112		4.42	%			14,378,394		6.18	%	13,849,138		3.81	%

Nonearning assets
Allowance for credit losses	(150,297)						(145,578)						(119,000)								(144,149)				(124,145)
Cash and due from banks	211,670						221,527						228,068								217,281				239,219
Accrued interest and other assets	2,485,872						2,488,564						2,359,106								2,502,652				2,288,819
Total assets	$	16,951,389					$	16,968,055					$	16,385,989							$	16,954,178			$	16,253,031

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	2,927,416	$	12,953	1.76	%	$	2,906,855	$	8,351	1.15	%	$	3,105,547	$	2,404	0.31	%			$	2,913,737	1.28	%	$	3,177,253	0.16	%
Savings	3,919,590		19,853		2.01	%	3,749,902		14,055		1.50	%	4,036,565		2,199		0.22	%			3,829,802		1.45	%	4,085,787		0.13	%
Time	2,446,854		24,263		3.93	%	2,393,707		21,886		3.67	%	1,052,669		1,783		0.67	%			2,325,244		3.64	%	1,112,541		0.50	%
Total interest-bearing deposits	9,293,860		57,069		2.44	%	9,050,464		44,292		1.96	%	8,194,781		6,386		0.31	%			9,068,783		1.96	%	8,375,581		0.19	%
Borrowed funds
Short-term borrowings	1,064,669		14,615		5.45	%	1,182,176		15,536		5.27	%	1,056,660		6,158		2.31	%			1,112,426		5.18	%	707,152		1.52	%
Long-term debt	338,402		4,952		5.81	%	341,523		4,835		5.68	%	350,058		4,676		5.30	%			341,162		5.74	%	364,693		5.07	%
Total borrowed funds	1,403,071		19,567		5.53	%	1,523,699		20,371		5.36	%	1,406,718		10,834		3.06	%			1,453,588		5.31	%	1,071,845		2.73	%
Total interest-bearing liabilities	10,696,931		76,636		2.84	%	10,574,163		64,663		2.45	%	9,601,499		17,220		0.71	%			10,522,371		2.42	%	9,447,426		0.48	%

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	3,493,305						3,663,419						4,176,242								3,702,189				4,187,145
Other liabilities	607,552						592,708						519,069								604,831				480,845
Shareholders' equity	2,153,601						2,137,765						2,089,179								2,124,787				2,137,615
Total liabilities & shareholders' equity	$	16,951,389					$	16,968,055					$	16,385,989							$	16,954,178			$	16,253,031

Net interest income	$	155,455					$	159,232					$	137,892							$	474,005			$	361,247
Net interest spread					3.55	%					3.78	%					3.71	%					3.76	%			3.33	%
Net interest margin					4.28	%					4.43	%					3.93	%					4.41	%			3.49	%

Tax equivalent adjustment					0.05	%					0.05	%					0.05	%					0.04	%			0.04	%
Net interest margin (fully tax equivalent)					4.33	%					4.48	%					3.98	%					4.45	%			3.53	%


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


FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)


	Linked Qtr. Income Variance						Comparable Qtr. Income Variance							Year-to-Date Income Variance
	Rate		Volume		Total			Rate		Volume		Total			Rate		Volume		Total
Earning assets
Investment securities	$	552	$	(1,308)	$	(756)		$	9,724	$	(6,250)	$	3,474		$	37,663	$	(18,365)	$	19,298
Interest-bearing deposits with other banks	297		781		1,078			2,518		896		3,414			8,467		1,799		10,266
Gross loans (2)	3,811		4,063		7,874			51,513		18,578		70,091			183,082		56,829		239,911
Total earning assets	4,660		3,536		8,196			63,755		13,224		76,979			229,212		40,263		269,475

Interest-bearing liabilities
Total interest-bearing deposits	$	10,678	$	2,099	$	12,777		$	43,934	$	6,749	$	50,683		$	110,693	$	10,152	$	120,845
Borrowed funds
Short-term borrowings	516		(1,437)		(921)			8,347		110		8,457			19,358		15,702		35,060
Long-term debt	108		9		117			447		(171)		276			1,822		(1,010)		812
Total borrowed funds	624		(1,428)		(804)			8,794		(61)		8,733			21,180		14,692		35,872
Total interest-bearing liabilities	11,302		671		11,973			52,728		6,688		59,416			131,873		24,844		156,717
Net interest income (1)	$	(6,642)	$	2,865	$	(3,777)		$	11,027	$	6,536	$	17,563		$	97,339	$	15,419	$	112,758


(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.


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,
	2023			2023			2023			2022			2022			2023			2022
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$	148,646		$	141,591		$	132,977		$	124,096		$	117,885		$	132,977		$	131,992

Provision for credit losses	12,907			12,719			8,644			8,689			7,898			34,270			(1,958)
Gross charge-offs
Commercial and industrial	9,207			2,372			730			334			1,947			12,309			5,565
Lease financing	76			90			13			0			13			179			152
Construction real estate	0			0			0			0			0			0			0
Commercial real estate	6,008			2,648			66			245			3			8,722			3,422
Residential real estate	10			20			0			79			119			30			145
Home equity	54			21			91			72			45			166			88
Installment	1,349			1,515			1,524			717			294			4,388			832
Credit card	319			274			217			212			237			810			695
Total gross charge-offs	17,023			6,940			2,641			1,659			2,658			26,604			10,899
Recoveries
Commercial and industrial	335			631			109			293			90			1,075			646
Lease financing	1			1			1			0			13			3			49
Construction real estate	0			0			0			0			0			0			0
Commercial real estate	39			153			2,238			1,327			561			2,430			2,977
Residential real estate	44			113			66			15			35			223			159
Home equity	125			232			80			88			185			437			810
Installment	87			90			54			68			29			231			97
Credit card	40			56			63			60			58			159			223
Total recoveries	671			1,276			2,611			1,851			971			4,558			4,961
Total net charge-offs	16,352			5,664			30			(192)			1,687			22,046			5,938
Ending allowance for credit losses	$	145,201		$	148,646		$	141,591		$	132,977		$	124,096		$	145,201		$	124,096

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	1.02		%	0.20		%	0.07		%	0.01		%	0.24		%	0.43		%	0.23		%
Lease financing	0.08		%	0.11		%	0.02		%	0.00		%	0.00		%	0.07		%	0.10		%
Construction real estate	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Commercial real estate	0.59		%	0.25		%	(0.22)		%	(0.11)		%	(0.06)		%	0.21		%	0.01		%
Residential real estate	(0.01)		%	(0.03)		%	(0.02)		%	0.02		%	0.03		%	(0.02)		%	0.00		%
Home equity	(0.04)		%	(0.12)		%	0.01		%	(0.01)		%	(0.08)		%	(0.05)		%	(0.13)		%
Installment	3.05		%	3.32		%	2.89		%	1.24		%	0.64		%	3.08		%	0.69		%
Credit card	1.82		%	1.47		%	1.12		%	1.07		%	1.29		%	1.48		%	1.16		%

Total net charge-offs	0.61		%	0.22		%	0.00		%	(0.01)		%	0.07		%	0.28		%	0.08		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$	17,152		$	21,508		$	13,971		$	8,242		$	8,719		$	17,152		$	8,719
Lease financing	7,731			4,833			175			178			199			7,731			199
Construction real estate	0			0			0			0			0			0			0
Commercial real estate	33,019			11,876			5,362			5,786			13,435			33,019			13,435
Residential real estate	12,328			11,697			11,129			10,691			10,250			12,328			10,250
Home equity	3,937			3,239			3,399			3,123			3,445			3,937			3,445
Installment	774			568			544			603			279			774			279
Nonaccrual loans	74,941			53,721			34,580			28,623			36,327			74,941			36,327
Accruing troubled debt restructurings (TDRs) (2)	N/A			N/A			N/A			10,960			11,022			N/A			11,022
Total nonperforming loans (2)	74,941			53,721			34,580			39,583			47,349			74,941			47,349
Other real estate owned (OREO)	142			281			191			191			22			142			22
Total nonperforming assets (2)	75,083			54,002			34,771			39,774			47,371			75,083			47,371
Accruing loans past due 90 days or more	698			873			159			857			139			698			139
Total underperforming assets (2)	$	75,781		$	54,875		$	34,930		$	40,631		$	47,510		$	75,781		$	47,510
Total classified assets (2)	$	140,552		$	138,909		$	158,984		$	128,137		$	114,956		$	140,552		$	114,956

CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	193.75		%	276.70		%	409.46		%	464.58		%	341.61		%	193.75		%	341.61		%
Nonperforming loans	193.75		%	276.70		%	409.46		%	335.94		%	262.09		%	193.75		%	262.09		%
Total ending loans	1.36		%	1.41		%	1.36		%	1.29		%	1.27		%	1.36		%	1.27		%
Nonperforming loans to total loans	0.70		%	0.51		%	0.33		%	0.38		%	0.48		%	0.70		%	0.48		%
Nonaccrual loans to total loans	0.70		%	0.51		%	0.33		%	0.28		%	0.37		%	0.70		%	0.37		%
Nonperforming assets to
Ending loans, plus OREO	0.71		%	0.51		%	0.33		%	0.39		%	0.48		%	0.71		%	0.48		%
Total assets	0.44		%	0.32		%	0.21		%	0.23		%	0.28		%	0.44		%	0.28		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.71		%	0.51		%	0.33		%	0.28		%	0.37		%	0.71		%	0.37		%
Total assets	0.44		%	0.32		%	0.21		%	0.17		%	0.22		%	0.44		%	0.22		%
Classified assets to total assets	0.82		%	0.81		%	0.94		%	0.75		%	0.69		%	0.82		%	0.69		%

(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million and $12.8 million, as of December 31, 2022 and September 30, 2022, respectively.
(2) Upon adoption of ASU 2022-02 as of January 1, 2023, the TDR model was eliminated. Prospectively, disclosures will include modifications of loans to borrowers experiencing financial difficulty (FDM). FDMs are excluded from nonperforming, underperforming and classified assets.


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,
	2023			2023			2023			2022			2022			2023			2022
PER COMMON SHARE
Market Price
High	$	24.02		$	22.27		$	26.24		$	26.68		$	23.75		$	26.24		$	26.73
Low	$	19.19		$	18.20		$	21.30		$	21.56		$	19.02		$	18.20		$	19.02
Close	$	19.60		$	20.44		$	21.77		$	24.23		$	21.08		$	19.60		$	21.08

Average shares outstanding - basic	94,030,275			93,924,068			93,732,532			93,590,674			93,582,250			93,896,716			93,507,831
Average shares outstanding - diluted	95,126,269			95,169,348			94,960,158			94,831,788			94,793,766			95,085,871			94,504,453
Ending shares outstanding	95,117,180			95,185,483			95,190,406			94,891,099			94,833,964			95,117,180			94,833,964

Total shareholders' equity	$	2,129,509		$	2,143,419		$	2,121,496		$	2,041,373		$	1,994,132		$	2,129,509		$	1,994,132

REGULATORY CAPITAL	Preliminary															Preliminary
Common equity tier 1 capital	$	1,527,793		$	1,481,913		$	1,432,332		$	1,399,420		$	1,348,413		$	1,527,793		$	1,348,413
Common equity tier 1 capital ratio	11.60		%	11.34		%	11.00		%	10.83		%	10.82		%	11.60		%	10.82		%
Tier 1 capital	$	1,572,248		$	1,526,362		$	1,476,734		$	1,443,698		$	1,392,565		$	1,572,248		$	1,392,565
Tier 1 ratio	11.94		%	11.68		%	11.34		%	11.17		%	11.17		%	11.94		%	11.17		%
Total capital	$	1,778,993		$	1,756,968		$	1,707,270		$	1,691,255		$	1,640,052		$	1,778,993		$	1,640,052
Total capital ratio	13.51		%	13.44		%	13.11		%	13.09		%	13.15		%	13.51		%	13.15		%
Total capital in excess of minimum requirement	$	396,083		$	384,735		$	339,585		$	334,316		$	330,973		$	396,083		$	330,973
Total risk-weighted assets	$	13,170,574		$	13,068,888		$	13,025,567		$	12,923,233		$	12,467,422		$	13,170,574		$	12,467,422
Leverage ratio	9.59		%	9.33		%	9.03		%	8.89		%	8.88		%	9.59		%	8.88		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	12.49		%	12.54		%	12.53		%	12.01		%	12.00		%	12.49		%	12.00		%
Ending tangible shareholders' equity to ending tangible assets (1)	6.50		%	6.56		%	6.47		%	5.95		%	5.79		%	6.50		%	5.79		%
Average shareholders' equity to average assets	12.70		%	12.60		%	12.29		%	11.98		%	12.75		%	12.53		%	13.15		%
Average tangible shareholders' equity to average tangible assets (1)	6.69		%	6.57		%	6.21		%	5.84		%	6.49		%	6.49		%	6.85		%

REPURCHASE PROGRAM (2)
Shares repurchased	0			0			0			0			0			0			0
Average share repurchase price	N/A			N/A			N/A			N/A			N/A			N/A			N/A
Total cost of shares repurchased	N/A			N/A			N/A			N/A			N/A			N/A			N/A

(1) Non-GAAP measure. 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.
(2) Represents share repurchases as part of publicly announced plans.

N/A = Not applicable