EX-99.1 2 a8k2q23earningsreleaseex991.htm EX-99.1

                                                Exhibit 99.1

First Financial Bancorp Announces Second Quarter 2023 Financial Results

•Earnings per diluted share of $0.69; $0.72 on an adjusted(1) basis, 29% increase YoY

•Return on average assets of 1.55%; 1.62% on an adjusted(1) basis

•Net interest margin on FTE basis(1) of 4.48%; 7 bp decrease from linked quarter

•Loan growth of $117 million; 4.5% on an annualized basis

•Strong adjusted(1) fee income of $53.5 million driven by foreign exchange and wealth management

•ACL to total loans of 1.41%; Classified assets declined 13% from linked quarter

•All capital ratios increased from the linked quarter; Regulatory ratios well in excess of targets

Cincinnati, Ohio - July 20, 2023. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and six months ended June 30, 2023.

For the three months ended June 30, 2023, the Company reported net income of $65.7 million, or $0.69 per diluted common share. These results compare to net income of $70.4 million, or $0.74 per diluted common share, for the first quarter of 2023. For the six months ended June 30, 2023, First Financial had earnings per diluted share of $1.43 compared to $0.98 for the same period in 2022.

Return on average assets for the second quarter of 2023 was 1.55% while return on average tangible common equity was 25.27%(1). These compare to return on average assets of 1.69% and return on average tangible common equity of 29.02%(1) in the first quarter of 2023.

Second quarter 2023 highlights include:

•Net interest margin of 4.43%, or 4.48% on a fully tax-equivalent basis(1)

◦7 bp decrease to 4.48% from 4.55% in the first quarter due to increasing deposit costs

◦Higher asset yields significantly offset 40 bp increase in cost of deposits

◦Average deposit balances decreased $98.3 million with growth in brokered and retail CDs offsetting declines in noninterest bearing checking and savings accounts

•Noninterest income of $53.3 million, or $53.5 million as adjusted(1)

◦Foreign exchange income of $15.0 million reflected continued strong activity

◦Record wealth management fees of $6.7 million; 6.0% increase from first quarter

◦Leasing business income of $10.3 million; 24.9% decline from first quarter due to change in mix

◦Adjusted(1) $0.2 million for losses on investment securities and gain related to the LIBOR cessation

•Noninterest expenses of $120.6 million, or $116.9 million as adjusted(1)

◦$3.9 million increase from first quarter driven primarily by higher employee costs and online banking conversion

◦Second quarter adjustments(1) include $1.0 million tax credit investment writedown, $1.7 million of costs related to our online banking conversion and $1.0 million of other costs not expected to recur such as acquisition, severance and branch consolidation costs

◦Efficiency ratio of 56.8%; 54.9% 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, September 30, 2022, and June 30, 2022, include assets acquired and liabilities assumed in the Summit Financial transaction. 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.

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•Moderate loan growth during the quarter

◦Loan balances increased $116.8 million compared to the first quarter

◦Growth of 4.5% on an annualized basis

◦Residential mortgage and equipment leases drove quarterly growth

•Total Allowance for Credit Losses of $166.9 million; Total quarterly provision expense of $10.7 million

◦Loans and leases - ACL of $148.6 million; increased 5 bps to 1.41% of total loans

◦Unfunded Commitments - ACL of $18.2 million

◦Provision expense driven by slower prepayment speeds, net charge-offs and loan growth

◦Classified assets declined 12.6% to $138.9 million; Net charge-offs 22 bps of total loans

•Capital ratios remain solid

◦Total capital ratio increased 28 bps to 13.94%

◦Tier 1 common equity increased 30 bps to 11.30%

◦Tangible common equity increased 9 bps to 6.56%(1); 8.76%(1) excluding impact from AOCI

◦Tangible book value per share of $11.02(1)

Archie Brown, President and CEO, commented on the quarter, “I continue to be pleased with our performance this year. Earnings in the second quarter were once again very strong as an expected increase in deposit costs was mostly offset by higher asset yields. Adjusted(1) earnings per share were $0.72, which was a 29% increase compared to the same quarter in 2022, while the adjusted(1) returns on assets and tangible common equity were 1.62% and 26.46%, respectively. Net interest margin exceeded expectations during the period as our asset sensitive balance sheet has enabled the company to successfully navigate the higher interest rate environment. We were encouraged by the stabilization of deposit balances in the last half of the quarter. Personal, business and public fund deposits were stable to increasing from May to June while the mix continued to shift to interest bearing products."

Mr. Brown continued, “Our fee income largely exceeded our expectations this quarter, with strong performance from mortgage banking, client swaps and wealth management. Summit Funding Group had another nice quarter in originations although the mix has shifted to a higher level of finance leases and loans. This shift has bolstered our net interest income but resulted in less fee income during the period.”

Mr. Brown commented on loan growth and quality, "Loan growth was in line with expectations for the period. While loan activity slowed early in the quarter and we experienced higher commercial line pay downs, loan pipelines strengthened in recent weeks. We expect moderate loan growth in the second half of the year. We were pleased that asset quality remained strong during the quarter. Net charge-offs were 22 bps on an annualized basis after being zero last quarter and a net recovery in the fourth quarter of 2022 while classified assets declined 13% from the linked quarter."

Mr. Brown concluded, "We are extremely pleased with our results this quarter. The position of our balance sheet, strong net interest margin, consistent loan growth, robust fee income and stable asset quality is expected to sustain our performance in the back half of the year. Additionally, our earnings power, strong and increasing capital levels and high reserve levels provide additional support in the event of a downturn in the economy."

Full detail of the Company’s second quarter 2023 performance is provided in the accompanying financial statements and slide presentation.

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Teleconference / Webcast Information

First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, July 21, 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 August 5, 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;  

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•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 June 30, 2023, the Company had $17.1 billion in assets, $10.6 billion in loans, $12.8 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 June 30, 2023. The Company operated 130 full service banking centers as of June 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    

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Selected Financial Information

June 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

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FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
			Three Months Ended,																														Six months ended,
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,
			2023						2023						2022						2022						2022						2023						2022
RESULTS OF OPERATIONS
Net income			$	65,667					$	70,403					$	69,086					$	55,705					$	51,520					$	136,070					$	92,821
Net earnings per share - basic			$	0.70					$	0.75					$	0.74					$	0.60					$	0.55					$	1.45					$	0.99
Net earnings per share - diluted			$	0.69					$	0.74					$	0.73					$	0.59					$	0.55					$	1.43					$	0.98
Dividends declared per share			$	0.23					$	0.23					$	0.23					$	0.23					$	0.23					$	0.46					$	0.46
KEY FINANCIAL RATIOS
Return on average assets			1.55		%				1.69		%				1.63		%				1.35		%				1.28		%				1.62		%				1.16		%
Return on average shareholders' equity			12.32		%				13.71		%				13.64		%				10.58		%				9.84		%				13.00		%				8.66		%
Return on average tangible shareholders' equity (1)			25.27		%				29.02		%				29.93		%				22.29		%				20.68		%				27.08		%				17.65		%
Net interest margin			4.43		%				4.51		%				4.43		%				3.93		%				3.41		%				4.47		%				3.26		%
Net interest margin (fully tax equivalent) (1)(2)			4.48		%				4.55		%				4.47		%				3.98		%				3.45		%				4.51		%				3.31		%
Ending shareholders' equity as a percent of ending assets			12.54		%				12.53		%				12.01		%				12.00		%				12.74		%				12.54		%				12.74		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)			6.56		%				6.47		%				5.95		%				5.79		%				6.40		%				6.56		%				6.40		%
Risk-weighted assets (1)			8.00		%				7.87		%				7.32		%				7.21		%				8.09		%				8.00		%				8.09		%
Average shareholders' equity as a percent of average assets			12.60		%				12.29		%				11.98		%				12.75		%				12.97		%				12.45		%				13.36		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)			6.57		%				6.21		%				5.84		%				6.49		%				6.62		%				6.39		%				7.03		%
Book value per share			$	22.52					$	22.29					$	21.51					$	21.03					$	21.90					$	22.52					$	21.90
Tangible book value per share (1)			$	11.02					$	10.76					$	9.97					$	9.48					$	10.27					$	11.02					$	10.27
Common equity tier 1 ratio (3)			11.30		%				11.00		%				10.83		%				10.82		%				10.91		%				11.30		%				10.91		%
Tier 1 ratio (3)			11.64		%				11.34		%				11.17		%				11.17		%				11.28		%				11.64		%				11.28		%
Total capital ratio (3)			13.94		%				13.66		%				13.64		%				13.73		%				13.94		%				13.94		%				13.94		%
Leverage ratio (3)			9.33		%				9.03		%				8.89		%				8.88		%				8.76		%				9.33		%				8.76		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)			$	10,513,505					$	10,373,302					$	10,059,119					$	9,597,197					$	9,367,820					$	10,443,791					$	9,317,576
Investment securities			3,560,453						3,635,317						3,705,304						4,003,472						4,118,287						3,597,678						4,212,649
Interest-bearing deposits with other banks			329,584						318,026						372,054						317,146						294,136						323,837						284,006
Total earning assets			$	14,403,542					$	14,326,645					$	14,136,477					$	13,917,815					$	13,780,243					$	14,365,306					$	13,814,231
Total assets			$	16,968,055					$	16,942,999					$	16,767,598					$	16,385,989					$	16,185,978					$	16,955,596					$	16,185,451
Noninterest-bearing deposits			$	3,663,419					$	3,954,915					$	4,225,192					$	4,176,242					$	4,224,842					$	3,808,362					$	4,192,687
Interest-bearing deposits			9,050,464						8,857,226						8,407,114						8,194,781						8,312,876						8,954,379						8,467,479
Total deposits			$	12,713,883					$	12,812,141					$	12,632,306					$	12,371,023					$	12,537,718					$	12,762,741					$	12,660,166
Borrowings			$	1,523,699					$	1,434,338					$	1,489,088					$	1,406,718					$	1,079,596					$	1,479,265					$	901,634
Shareholders' equity			$	2,137,765					$	2,082,210					$	2,009,564					$	2,089,179					$	2,099,670					$	2,110,141					$	2,162,235
CREDIT QUALITY RATIOS
Allowance to ending loans			1.41		%				1.36		%				1.29		%				1.27		%				1.25		%				1.41		%				1.25		%
Allowance to nonaccrual loans			276.70		%				409.46		%				464.58		%				341.61		%				302.87		%				276.70		%				302.87		%
Allowance to nonperforming loans			276.70		%				409.46		%				335.94		%				262.09		%				235.08		%				276.70		%				235.08		%
Nonperforming loans to total loans			0.51		%				0.33		%				0.38		%				0.48		%				0.53		%				0.51		%				0.53		%
Nonaccrual loans to total loans			0.51		%				0.33		%				0.28		%				0.37		%				0.41		%				0.51		%				0.41		%
Nonperforming assets to ending loans, plus OREO			0.51		%				0.33		%				0.39		%				0.48		%				0.53		%				0.51		%				0.53		%
Nonperforming assets to total assets			0.32		%				0.21		%				0.23		%				0.28		%				0.31		%				0.32		%				0.31		%
Classified assets to total assets			0.81		%				0.94		%				0.75		%				0.69		%				0.74		%				0.81		%				0.74		%
Net charge-offs to average loans (annualized)			0.22		%				0.00		%				(0.01)		%				0.07		%				0.08		%				0.11		%				0.09		%

(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 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) June 30, 2023 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.

2

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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
			Three months ended,																		Six months ended,
			June 30,																		June 30,
			2023						2022						% Change						2023						2022						% Change
Interest income
Loans and leases, including fees			$	184,387					$	97,091					89.9		%				$	354,093					$	184,273					92.2		%
Investment securities
Taxable			32,062						23,639						35.6		%				63,929						45,735						39.8		%
Tax-exempt			3,513						4,916						(28.5)		%				6,977						9,347						(25.4)		%
Total investment securities interest			35,575						28,555						24.6		%				70,906						55,082						28.7		%
Other earning assets			3,933						505						678.8		%				7,477						625						1,096.3		%
Total interest income			223,895						126,151						77.5		%				432,476						239,980						80.2		%
Interest expense
Deposits			44,292						2,963						1,394.8		%				75,748						5,586						1,256.0		%
Short-term borrowings			15,536						1,566						892.1		%				28,486						1,883						1,412.8		%
Long-term borrowings			4,835						4,612						4.8		%				9,692						9,156						5.9		%
Total interest expense			64,663						9,141						607.4		%				113,926						16,625						585.3		%
Net interest income			159,232						117,010						36.1		%				318,550						223,355						42.6		%
Provision for credit losses-loans and leases			12,719						(4,267)						(398.1)		%				21,363						(9,856)						(316.8)		%
Provision for credit losses-unfunded commitments			(1,994)						3,481						(157.3)		%				(159)						3,255						(104.9)		%
Net interest income after provision for credit losses			148,507						117,796						26.1		%				297,346						229,956						29.3		%
Noninterest income
Service charges on deposit accounts			6,972						7,648						(8.8)		%				13,486						15,377						(12.3)		%
Wealth management fees			6,713						6,311						6.4		%				13,047						12,371						5.5		%
Bankcard income			3,692						3,823						(3.4)		%				7,284						7,160						1.7		%
Client derivative fees			1,827						1,369						33.5		%				2,832						2,172						30.4		%
Foreign exchange income			15,039						13,470						11.6		%				31,937						23,621						35.2		%
Leasing business income			10,265						7,247						41.6		%				23,929						13,323						79.6		%
Net gains from sales of loans			3,839						5,241						(26.8)		%				6,174						9,113						(32.3)		%
Net gain (loss) on sale of investment securities			(384)						0						N/M						(903)						3						N/M
Net gain (loss) on equity securities			(82)						(1,054)						(92.2)		%				558						(1,253)						(144.5)		%
Other			5,377						5,723						(6.0)		%				10,457						9,185						13.8		%
Total noninterest income			53,258						49,778						7.0		%				108,801						91,072						19.5		%
Noninterest expenses
Salaries and employee benefits			74,199						64,992						14.2		%				146,453						128,939						13.6		%
Net occupancy			5,606						5,359						4.6		%				11,291						11,105						1.7		%
Furniture and equipment			3,362						3,201						5.0		%				6,679						6,768						(1.3)		%
Data processing			9,871						8,334						18.4		%				18,891						16,598						13.8		%
Marketing			2,802						2,323						20.6		%				4,962						4,023						23.3		%
Communication			644						670						(3.9)		%				1,278						1,336						(4.3)		%
Professional services			2,308						2,214						4.2		%				4,254						4,373						(2.7)		%
State intangible tax			964						1,090						(11.6)		%				1,949						2,221						(12.2)		%
FDIC assessments			2,806						1,677						67.3		%				5,632						3,136						79.6		%
Intangible amortization			2,601						2,915						(10.8)		%				5,201						5,829						(10.8)		%
Leasing business expense			6,730						4,687						43.6		%				14,668						8,556						71.4		%
Other			8,722						5,572						56.5		%				16,050						12,955						23.9		%
Total noninterest expenses			120,615						103,034						17.1		%				237,308						205,839						15.3		%
Income before income taxes			81,150						64,540						25.7		%				168,839						115,189						46.6		%
Income tax expense (benefit)			15,483						13,020						18.9		%				32,769						22,368						46.5		%
Net income			$	65,667					$	51,520					27.5		%				$	136,070					$	92,821					46.6		%
ADDITIONAL DATA
Net earnings per share - basic			$	0.70					$	0.55											$	1.45					$	0.99
Net earnings per share - diluted			$	0.69					$	0.55											$	1.43					$	0.98
Dividends declared per share			$	0.23					$	0.23											$	0.46					$	0.46
Return on average assets			1.55		%				1.28		%										1.62		%				1.16		%
Return on average shareholders' equity			12.32		%				9.84		%										13.00		%				8.66		%
Interest income			$	223,895					$	126,151					77.5		%				$	432,476					$	239,980					80.2		%
Tax equivalent adjustment			1,601						1,625						(1.5)		%				3,025						3,092						(2.2)		%
Interest income - tax equivalent			225,496						127,776						76.5		%				435,501						243,072						79.2		%
Interest expense			64,663						9,141						607.4		%				113,926						16,625						585.3		%
Net interest income - tax equivalent			$	160,833					$	118,635					35.6		%				$	321,575					$	226,447					42.0		%
Net interest margin			4.43		%				3.41		%										4.47		%				3.26		%
Net interest margin (fully tax equivalent) (1)			4.48		%				3.45		%										4.51		%				3.31		%
Full-time equivalent employees			2,193						2,096
(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.

3

---

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
															2023
															Second						First						Year to						% Change
															Quarter						Quarter						Date						Linked Qtr.
Interest income
Loans and leases, including fees															$	184,387					$	169,706					$	354,093					8.7		%
Investment securities
Taxable															32,062						31,867						63,929						0.6		%
Tax-exempt															3,513						3,464						6,977						1.4		%
Total investment securities interest															35,575						35,331						70,906						0.7		%
Other earning assets															3,933						3,544						7,477						11.0		%
Total interest income															223,895						208,581						432,476						7.3		%
Interest expense
Deposits															44,292						31,456						75,748						40.8		%
Short-term borrowings															15,536						12,950						28,486						20.0		%
Long-term borrowings															4,835						4,857						9,692						(0.5)		%
Total interest expense															64,663						49,263						113,926						31.3		%
Net interest income															159,232						159,318						318,550						(0.1)		%
Provision for credit losses-loans and leases															12,719						8,644						21,363						47.1		%
Provision for credit losses-unfunded commitments															(1,994)						1,835						(159)						(208.7)		%
Net interest income after provision for credit losses															148,507						148,839						297,346						(0.2)		%
Noninterest income
Service charges on deposit accounts															6,972						6,514						13,486						7.0		%
Wealth management fees															6,713						6,334						13,047						6.0		%
Bankcard income															3,692						3,592						7,284						2.8		%
Client derivative fees															1,827						1,005						2,832						81.8		%
Foreign exchange income															15,039						16,898						31,937						(11.0)		%
Leasing business income															10,265						13,664						23,929						(24.9)		%
Net gains from sales of loans															3,839						2,335						6,174						64.4		%
Net gain (loss) on sale of investment securities															(384)						(519)						(903)						(26.0)		%
Net gain (loss) on equity securities															(82)						640						558						112.8		%
Other															5,377						5,080						10,457						5.8		%
Total noninterest income															53,258						55,543						108,801						(4.1)		%
Noninterest expenses
Salaries and employee benefits															74,199						72,254						146,453						2.7		%
Net occupancy															5,606						5,685						11,291						(1.4)		%
Furniture and equipment															3,362						3,317						6,679						1.4		%
Data processing															9,871						9,020						18,891						9.4		%
Marketing															2,802						2,160						4,962						29.7		%
Communication															644						634						1,278						1.6		%
Professional services															2,308						1,946						4,254						18.6		%
State intangible tax															964						985						1,949						(2.1)		%
FDIC assessments															2,806						2,826						5,632						(0.7)		%
Intangible amortization															2,601						2,600						5,201						0.0		%
Leasing business expense															6,730						7,938						14,668						(15.2)		%
Other															8,722						7,328						16,050						19.0		%
Total noninterest expenses															120,615						116,693						237,308						3.4		%
Income before income taxes															81,150						87,689						168,839						(7.5)		%
Income tax expense (benefit)															15,483						17,286						32,769						(10.4)		%
Net income															$	65,667					$	70,403					$	136,070					(6.7)		%
ADDITIONAL DATA
Net earnings per share - basic															$	0.70					$	0.75					$	1.45
Net earnings per share - diluted															$	0.69					$	0.74					$	1.43
Dividends declared per share															$	0.23					$	0.23					$	0.46
Return on average assets															1.55		%				1.69		%				1.62		%
Return on average shareholders' equity															12.32		%				13.71		%				13.00		%
Interest income															$	223,895					$	208,581					$	432,476					7.3		%
Tax equivalent adjustment															1,601						1,424						3,025						12.4		%
Interest income - tax equivalent															225,496						210,005						435,501						7.4		%
Interest expense															64,663						49,263						113,926						31.3		%
Net interest income - tax equivalent															$	160,833					$	160,742					$	321,575					0.1		%
Net interest margin															4.43		%				4.51		%				4.47		%
Net interest margin (fully tax equivalent) (1)															4.48		%				4.55		%				4.51		%
Full-time equivalent employees															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.

4

---

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.

5

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FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						% Change						% Change
			2023						2023						2022						2022						2022						Linked Qtr.						Comp Qtr.
ASSETS
Cash and due from banks			$	217,385					$	199,835					$	207,501					$	195,553					$	217,481					8.8		%				0.0		%
Interest-bearing deposits with other banks			485,241						305,465						388,182						338,978						270,042						58.9		%				79.7		%
Investment securities available-for-sale			3,249,404						3,384,949						3,409,648						3,531,353						3,843,580						(4.0)		%				(15.5)		%
Investment securities held-to-maturity			82,372						83,070						84,021						85,823						88,057						(0.8)		%				(6.5)		%
Other investments			141,892						143,606						143,160						138,767						132,151						(1.2)		%				7.4		%
Loans held for sale			15,267						9,280						7,918						10,684						22,044						64.5		%				(30.7)		%
Loans and leases
Commercial and industrial			3,433,162						3,449,289						3,410,272						3,139,219						2,927,175						(0.5)		%				17.3		%
Lease financing			360,801						273,898						236,124						176,072						146,639						31.7		%				146.0		%
Construction real estate			536,464						525,906						512,050						489,446						449,734						2.0		%				19.3		%
Commercial real estate			4,048,460						4,056,627						4,052,759						3,976,345						4,007,037						(0.2)		%				1.0		%
Residential real estate			1,221,484						1,145,069						1,092,265						1,024,596						965,387						6.7		%				26.5		%
Home equity			728,711						724,672						733,791						737,318						725,700						0.6		%				0.4		%
Installment			165,216						204,372						209,895						202,267						146,680						(19.2)		%				12.6		%
Credit card			55,911						53,552						51,815						52,173						52,065						4.4		%				7.4		%
Total loans			10,550,209						10,433,385						10,298,971						9,797,436						9,420,417						1.1		%				12.0		%
Less:
Allowance for credit losses			(148,646)						(141,591)						(132,977)						(124,096)						(117,885)						5.0		%				26.1		%
Net loans			10,401,563						10,291,794						10,165,994						9,673,340						9,302,532						1.1		%				11.8		%
Premises and equipment			192,077						188,959						189,080						189,067						191,099						1.7		%				0.5		%
Operating leases			132,272						153,986						91,738						84,851						82,659						(14.1)		%				60.0		%
Goodwill			1,005,828						1,005,738						1,001,507						998,422						999,959						0.0		%				0.6		%
Other intangibles			88,662						91,169						93,919						96,528						99,019						(2.7)		%				(10.5)		%
Accrued interest and other assets			1,078,186						1,076,033						1,220,648						1,280,427						995,091						0.2		%				8.4		%
Total Assets			$	17,090,149					$	16,933,884					$	17,003,316					$	16,623,793					$	16,243,714					0.9		%				5.2		%
LIABILITIES
Deposits
Interest-bearing demand			$	2,919,472					$	2,761,811					$	3,037,153					$	2,980,465					$	3,096,365					5.7		%				(5.7)		%
Savings			3,785,445						3,746,403						3,828,139						3,980,020						4,029,717						1.0		%				(6.1)		%
Time			2,484,780						2,336,368						1,700,705						1,242,412						1,026,918						6.4		%				142.0		%
Total interest-bearing deposits			9,189,697						8,844,582						8,565,997						8,202,897						8,153,000						3.9		%				12.7		%
Noninterest-bearing			3,605,181						3,830,102						4,135,180						4,137,038						4,124,111						(5.9)		%				(12.6)		%
Total deposits			12,794,878						12,674,684						12,701,177						12,339,935						12,277,111						0.9		%				4.2		%
Federal funds purchased and securities sold
under agreements to repurchase			0						0						0						3,535						0						0.0		%				0.0		%
FHLB short-term borrowings			1,050,300						1,089,400						1,130,000						972,600						896,000						(3.6)		%				17.2		%
Other			165,983						128,160						157,156						184,912						152,226						29.5		%				9.0		%
Total short-term borrowings			1,216,283						1,217,560						1,287,156						1,161,047						1,048,226						(0.1)		%				16.0		%
Long-term debt			339,963						342,647						346,672						355,116						358,578						(0.8)		%				(5.2)		%
Total borrowed funds			1,556,246						1,560,207						1,633,828						1,516,163						1,406,804						(0.3)		%				10.6		%
Accrued interest and other liabilities			595,606						577,497						626,938						773,563						491,129						3.1		%				21.3		%
Total Liabilities			14,946,730						14,812,388						14,961,943						14,629,661						14,175,044						0.9		%				5.4		%
SHAREHOLDERS' EQUITY
Common stock			1,632,659						1,629,428						1,634,605						1,631,696						1,637,237						0.2		%				(0.3)		%
Retained earnings			1,060,715						1,016,893						968,237						920,943						887,006						4.3		%				19.6		%
Accumulated other comprehensive income (loss)			(353,010)						(328,059)						(358,663)						(354,570)						(243,328)						7.6		%				45.1		%
Treasury stock, at cost			(196,945)						(196,766)						(202,806)						(203,937)						(212,245)						0.1		%				(7.2)		%
Total Shareholders' Equity			2,143,419						2,121,496						2,041,373						1,994,132						2,068,670						1.0		%				3.6		%
Total Liabilities and Shareholders' Equity			$	17,090,149					$	16,933,884					$	17,003,316					$	16,623,793					$	16,243,714					0.9		%				5.2		%

6

---

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
			Quarterly Averages																														Year-to-Date Averages
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,
			2023						2023						2022						2022						2022						2023						2022
ASSETS
Cash and due from banks			$	221,527					$	218,724					$	218,216					$	228,068					$	248,463					$	220,133					$	244,887
Interest-bearing deposits with other banks			329,584						318,026						372,054						317,146						294,136						323,837						284,006
Investment securities			3,560,453						3,635,317						3,705,304						4,003,472						4,118,287						3,597,678						4,212,649
Loans held for sale			11,856						5,531						8,639						12,283						15,446						8,711						15,517
Loans and leases
Commercial and industrial			3,469,683						3,456,681						3,249,252						3,040,547						2,884,373						3,463,218						2,810,901
Lease financing			323,819						252,219						203,790						158,667						134,334						288,217						125,070
Construction real estate			518,190						536,294						501,787						469,489						460,609						527,192						467,406
Commercial real estate			4,050,946						4,017,021						4,028,944						3,969,935						4,025,493						4,034,077						4,081,969
Residential real estate			1,181,053						1,115,889						1,066,859						998,476						936,165						1,148,651						919,956
Home equity			726,333						728,185						735,039						728,791						716,219						727,254						710,001
Installment			172,147						205,934						208,484						164,063						140,145						188,947						132,902
Credit card			59,478						55,548						56,325						54,946						55,036						57,524						53,854
Total loans			10,501,649						10,367,771						10,050,480						9,584,914						9,352,374						10,435,080						9,302,059
Less:
Allowance for credit losses			(145,578)						(136,419)						(127,541)						(119,000)						(123,950)						(141,024)						(126,760)
Net loans			10,356,071						10,231,352						9,922,939						9,465,914						9,228,424						10,294,056						9,175,299
Premises and equipment			190,583						190,346						189,342						190,738						191,895						190,465						192,361
Operating leases			138,725						107,092						88,365						83,970						73,862						122,996						67,614
Goodwill			1,005,791						1,005,713						998,575						999,690						999,958						1,005,752						1,000,097
Other intangibles			89,878						92,587						95,256						97,781						100,354						91,225						101,686
Accrued interest and other assets			1,063,587						1,138,311						1,168,908						986,927						915,153						1,100,743						891,335
Total Assets			$	16,968,055					$	16,942,999					$	16,767,598					$	16,385,989					$	16,185,978					$	16,955,596					$	16,185,451
LIABILITIES
Deposits
Interest-bearing demand			$	2,906,855					$	2,906,712					$	3,103,091					$	3,105,547					$	3,180,846					$	2,906,784					$	3,213,700
Savings			3,749,902						3,818,807						3,943,342						4,036,565						4,076,380						3,784,164						4,110,806
Time			2,393,707						2,131,707						1,360,681						1,052,669						1,055,650						2,263,431						1,142,973
Total interest-bearing deposits			9,050,464						8,857,226						8,407,114						8,194,781						8,312,876						8,954,379						8,467,479
Noninterest-bearing			3,663,419						3,954,915						4,225,192						4,176,242						4,224,842						3,808,362						4,192,687
Total deposits			12,713,883						12,812,141						12,632,306						12,371,023						12,537,718						12,762,741						12,660,166
Federal funds purchased and securities sold
under agreements to repurchase			21,881						26,380						16,167						32,637						24,229						24,118						34,735
FHLB short-term borrowings			1,028,207						925,144						944,320						892,786						586,846						976,960						423,232
Other			132,088						139,195						184,439						131,237						109,353						135,622						71,535
Total short-term borrowings			1,182,176						1,090,719						1,144,926						1,056,660						720,428						1,136,700						529,502
Long-term debt			341,523						343,619						344,162						350,058						359,168						342,565						372,132
Total borrowed funds			1,523,699						1,434,338						1,489,088						1,406,718						1,079,596						1,479,265						901,634
Accrued interest and other liabilities			592,708						614,310						636,640						519,069						468,994						603,449						461,416
Total Liabilities			14,830,290						14,860,789						14,758,034						14,296,810						14,086,308						14,845,455						14,023,216
SHAREHOLDERS' EQUITY
Common stock			1,631,230						1,633,396						1,632,941						1,631,078						1,635,990						1,632,307						1,637,149
Retained earnings			1,034,092						989,777						941,987						899,524						866,910						1,012,057						854,351
Accumulated other comprehensive loss			(330,263)						(339,450)						(361,284)						(236,566)						(190,949)						(334,831)						(115,120)
Treasury stock, at cost			(197,294)						(201,513)						(204,080)						(204,857)						(212,281)						(199,392)						(214,145)
Total Shareholders' Equity			2,137,765						2,082,210						2,009,564						2,089,179						2,099,670						2,110,141						2,162,235
Total Liabilities and Shareholders' Equity			$	16,968,055					$	16,942,999					$	16,767,598					$	16,385,989					$	16,185,978					$	16,955,596					$	16,185,451

7

---

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
						Quarterly Averages																																																																																							Year-to-Date Averages
						June 30, 2023																		March 31, 2023																		June 30, 2022																											June 30, 2023												June 30, 2022
						Balance						Interest						Yield						Balance						Interest						Yield						Balance						Interest						Yield																																							Balance						Yield						Balance						Yield
Earning assets
Investments:
Investment securities						$	3,560,453					$	35,575					4.01		%				$	3,635,317					$	35,331					3.94		%				$	4,118,287					$	28,555					2.78		%																																					$	3,597,678					3.97		%				$	4,212,649					2.64		%
Interest-bearing deposits with other banks						329,584						3,933						4.79		%				318,026						3,544						4.52		%				294,136						505						0.69		%																																					323,837						4.66		%				284,006						0.44		%
Gross loans (1)						10,513,505						184,387						7.03		%				10,373,302						169,706						6.63		%				9,367,820						97,091						4.16		%																																					10,443,791						6.84		%				9,317,576						3.99		%
Total earning assets						14,403,542						223,895						6.23		%				14,326,645						208,581						5.90		%				13,780,243						126,151						3.67		%																																					14,365,306						6.07		%				13,814,231						3.50		%
Nonearning assets
Allowance for credit losses						(145,578)																		(136,419)																		(123,950)																																																			(141,024)												(126,760)
Cash and due from banks						221,527																		218,724																		248,463																																																			220,133												244,887
Accrued interest and other assets						2,488,564																		2,534,049																		2,281,222																																																			2,511,181												2,253,093
Total assets						$	16,968,055																	$	16,942,999																	$	16,185,978																																																		$	16,955,596											$	16,185,451
Interest-bearing liabilities
Deposits:
Interest-bearing demand						$	2,906,855					$	8,351					1.15		%				$	2,906,712					$	6,604					0.92		%				$	3,180,846					$	842					0.11		%																																					$	2,906,784					1.04		%				$	3,213,700					0.08		%
Savings						3,749,902						14,055						1.50		%				3,818,807						7,628						0.81		%				4,076,380						1,003						0.10		%																																					3,784,164						1.16		%				4,110,806						0.09		%
Time						2,393,707						21,886						3.67		%				2,131,707						17,224						3.28		%				1,055,650						1,118						0.42		%																																					2,263,431						3.48		%				1,142,973						0.42		%
Total interest-bearing deposits						9,050,464						44,292						1.96		%				8,857,226						31,456						1.44		%				8,312,876						2,963						0.14		%																																					8,954,379						1.71		%				8,467,479						0.13		%
Borrowed funds
Short-term borrowings						1,182,176						15,536						5.27		%				1,090,719						12,950						4.82		%				720,428						1,566						0.87		%																																					1,136,700						5.05		%				529,502						0.72		%
Long-term debt						341,523						4,835						5.68		%				343,619						4,857						5.73		%				359,168						4,612						5.15		%																																					342,565						5.71		%				372,132						4.96		%
Total borrowed funds						1,523,699						20,371						5.36		%				1,434,338						17,807						5.03		%				1,079,596						6,178						2.30		%																																					1,479,265						5.20		%				901,634						2.47		%
Total interest-bearing liabilities						10,574,163						64,663						2.45		%				10,291,564						49,263						1.94		%				9,392,472						9,141						0.39		%																																					10,433,644						2.20		%				9,369,113						0.36		%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits						3,663,419																		3,954,915																		4,224,842																																																			3,808,362												4,192,687
Other liabilities						592,708																		614,310																		468,994																																																			603,449												461,416
Shareholders' equity						2,137,765																		2,082,210																		2,099,670																																																			2,110,141												2,162,235
Total liabilities & shareholders' equity						$	16,968,055																	$	16,942,999																	$	16,185,978																																																		$	16,955,596											$	16,185,451
Net interest income						$	159,232																	$	159,318																	$	117,010																																																		$	318,550											$	223,355
Net interest spread																		3.78		%																3.96		%																3.28		%																																											3.87		%										3.14		%
Net interest margin																		4.43		%																4.51		%																3.41		%																																											4.47		%										3.26		%
Tax equivalent adjustment																		0.05		%																0.04		%																0.04		%																																											0.04		%										0.05		%
Net interest margin (fully tax equivalent)																		4.48		%																4.55		%																3.45		%																																											4.51		%										3.31		%
(1) Loans held for sale and nonaccrual loans are included in gross loans.

8

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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						$	593								$	(349)					$	244					$	12,594					$	(5,574)					$	7,020					$	27,944					$	(12,120)					$	15,824
Interest-bearing deposits with other banks						209									180						389						3,005						423						3,428						5,932						920						6,852
Gross loans (2)						10,223									4,458						14,681						67,203						20,093						87,296						131,636						38,184						169,820
Total earning assets						11,025									4,289						15,314						82,802						14,942						97,744						165,512						26,984						192,496
Interest-bearing liabilities
Total interest-bearing deposits						$	11,414								$	1,422					$	12,836					$	37,719					$	3,610					$	41,329					$	66,043					$	4,119					$	70,162
Borrowed funds
Short-term borrowings						1,227									1,359						2,586						7,902						6,068						13,970						11,386						15,217						26,603
Long-term debt						(46)									24						(22)						473						(250)						223						1,373						(837)						536
Total borrowed funds						1,181									1,383						2,564						8,375						5,818						14,193						12,759						14,380						27,139
Total interest-bearing liabilities						12,595									2,805						15,400						46,094						9,428						55,522						78,802						18,499						97,301
Net interest income (1)						$	(1,570)								$	1,484					$	(86)					$	36,708					$	5,514					$	42,222					$	86,710					$	8,485					$	95,195
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.

9

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FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
																																	Six months ended,
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,						June 30,
			2023						2023						2022						2022						2022						2023						2022
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period			$	141,591					$	132,977					$	124,096					$	117,885					$	124,130					$	132,977					$	131,992
Provision for credit losses			12,719						8,644						8,689						7,898						(4,267)						21,363						(9,856)
Gross charge-offs
Commercial and industrial			2,372						730						334						1,947						773						3,102						3,618
Lease financing			90						13						0						13						8						103						139
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			2,648						66						245						3						3,419						2,714						3,419
Residential real estate			20						0						79						119						4						20						26
Home equity			21						91						72						45						22						112						43
Installment			1,515						1,524						717						294						361						3,039						538
Credit card			274						217						212						237						212						491						458
Total gross charge-offs			6,940						2,641						1,659						2,658						4,799						9,581						8,241
Recoveries
Commercial and industrial			631						109						293						90						177						740						556
Lease financing			1						1						0						13						3						2						36
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			153						2,238						1,327						561						2,194						2,391						2,416
Residential real estate			113						66						15						35						34						179						124
Home equity			232						80						88						185						360						312						625
Installment			90						54						68						29						47						144						68
Credit card			56						63						60						58						6						119						165
Total recoveries			1,276						2,611						1,851						971						2,821						3,887						3,990
Total net charge-offs			5,664						30						(192)						1,687						1,978						5,694						4,251
Ending allowance for credit losses			$	148,646					$	141,591					$	132,977					$	124,096					$	117,885					$	148,646					$	117,885
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial			0.20		%				0.07		%				0.01		%				0.24		%				0.08		%				0.14		%				0.22		%
Lease financing			0.11		%				0.02		%				0.00		%				0.00		%				0.01		%				0.07		%				0.17		%
Construction real estate			0.00		%				0.00		%				0.00		%				0.00		%				0.00		%				0.00		%				0.00		%
Commercial real estate			0.25		%				(0.22)		%				(0.11)		%				(0.06)		%				0.12		%				0.02		%				0.05		%
Residential real estate			(0.03)		%				(0.02)		%				0.02		%				0.03		%				(0.01)		%				(0.03)		%				(0.02)		%
Home equity			(0.12)		%				0.01		%				(0.01)		%				(0.08)		%				(0.19)		%				(0.06)		%				(0.17)		%
Installment			3.32		%				2.89		%				1.24		%				0.64		%				0.90		%				3.09		%				0.71		%
Credit card			1.47		%				1.12		%				1.07		%				1.29		%				1.50		%				1.30		%				1.10		%
Total net charge-offs			0.22		%				0.00		%				(0.01)		%				0.07		%				0.08		%				0.11		%				0.09		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial			$	21,508					$	13,971					$	8,242					$	8,719					$	11,675					$	21,508					$	11,675
Lease financing			4,833						175						178						199						217						4,833						217
Construction real estate			0						0						0						0						0						0						0
Commercial real estate			11,876						5,362						5,786						13,435						14,650						11,876						14,650
Residential real estate			11,697						11,129						10,691						10,250						8,879						11,697						8,879
Home equity			3,239						3,399						3,123						3,445						3,331						3,239						3,331
Installment			568						544						603						279						170						568						170
Nonaccrual loans			53,721						34,580						28,623						36,327						38,922						53,721						38,922
Accruing troubled debt restructurings (TDRs) (2)			N/A						N/A						10,960						11,022						11,225						N/A						11,225
Total nonperforming loans (2)			53,721						34,580						39,583						47,349						50,147						53,721						50,147
Other real estate owned (OREO)			281						191						191						22						22						281						22
Total nonperforming assets (2)			54,002						34,771						39,774						47,371						50,169						54,002						50,169
Accruing loans past due 90 days or more			873						159						857						139						142						873						142
Total underperforming assets (2)			$	54,875					$	34,930					$	40,631					$	47,510					$	50,311					$	54,875					$	50,311
Total classified assets (2)			$	138,909					$	158,984					$	128,137					$	114,956					$	119,769					$	138,909					$	119,769
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans			276.70		%				409.46		%				464.58		%				341.61		%				302.87		%				276.70		%				302.87		%
Nonperforming loans			276.70		%				409.46		%				335.94		%				262.09		%				235.08		%				276.70		%				235.08		%
Total ending loans			1.41		%				1.36		%				1.29		%				1.27		%				1.25		%				1.41		%				1.25		%
Nonperforming loans to total loans			0.51		%				0.33		%				0.38		%				0.48		%				0.53		%				0.51		%				0.53		%
Nonaccrual loans to total loans			0.51		%				0.33		%				0.28		%				0.37		%				0.41		%				0.51		%				0.41		%
Nonperforming assets to
Ending loans, plus OREO			0.51		%				0.33		%				0.39		%				0.48		%				0.53		%				0.51		%				0.53		%
Total assets			0.32		%				0.21		%				0.23		%				0.28		%				0.31		%				0.32		%				0.31		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO			0.51		%				0.33		%				0.28		%				0.37		%				0.41		%				0.51		%				0.41		%
Total assets			0.32		%				0.21		%				0.17		%				0.22		%				0.24		%				0.32		%				0.24		%
Classified assets to total assets			0.81		%				0.94		%				0.75		%				0.69		%				0.74		%				0.81		%				0.74		%
(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million, $12.8 million, and $9.5 million, as of December 31, 2022, September 30, 2022, and June 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.

10

---

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																																	Six months ended,
			June 30,						Mar. 31,						Dec. 31,						Sep. 30,						June 30,						June 30,						June 30,
			2023						2023						2022						2022						2022						2023						2022
PER COMMON SHARE
Market Price
High			$	22.27					$	26.24					$	26.68					$	23.75					$	23.03					$	26.24					$	26.73
Low			$	18.20					$	21.30					$	21.56					$	19.02					$	19.09					$	18.20					$	19.09
Close			$	20.44					$	21.77					$	24.23					$	21.08					$	19.40					$	20.44					$	19.40
Average shares outstanding - basic			93,924,068						93,732,532						93,590,674						93,582,250						93,555,131						93,828,829						93,470,005
Average shares outstanding - diluted			95,169,348						94,960,158						94,831,788						94,793,766						94,449,817						95,065,334						94,357,392
Ending shares outstanding			95,185,483						95,190,406						94,891,099						94,833,964						94,448,792						95,185,483						94,448,792
Total shareholders' equity			$	2,143,419					$	2,121,496					$	2,041,373					$	1,994,132					$	2,068,670					$	2,143,419					$	2,068,670
REGULATORY CAPITAL			Preliminary																														Preliminary
Common equity tier 1 capital			$	1,481,913					$	1,432,332					$	1,399,420					$	1,348,413					$	1,307,259					$	1,481,913					$	1,307,259
Common equity tier 1 capital ratio			11.30		%				11.00		%				10.83		%				10.82		%				10.91		%				11.30		%				10.91		%
Tier 1 capital			$	1,526,362					$	1,476,734					$	1,443,698					$	1,392,565					$	1,351,287					$	1,526,362					$	1,351,287
Tier 1 ratio			11.64		%				11.34		%				11.17		%				11.17		%				11.28		%				11.64		%				11.28		%
Total capital			$	1,828,737					$	1,778,917					$	1,762,971					$	1,711,741					$	1,670,367					$	1,828,737					$	1,670,367
Total capital ratio			13.94		%				13.66		%				13.64		%				13.73		%				13.94		%				13.94		%				13.94		%
Total capital in excess of minimum requirement			$	451,297					$	411,234					$	406,032					$	402,662					$	412,167					$	451,297					$	412,167
Total risk-weighted assets			$	13,118,477					$	13,025,552					$	12,923,233					$	12,467,422					$	11,982,860					$	13,118,477					$	11,982,860
Leverage ratio			9.33		%				9.03		%				8.89		%				8.88		%				8.76		%				9.33		%				8.76		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets			12.54		%				12.53		%				12.01		%				12.00		%				12.74		%				12.54		%				12.74		%
Ending tangible shareholders' equity to ending tangible assets (1)			6.56		%				6.47		%				5.95		%				5.79		%				6.40		%				6.56		%				6.40		%
Average shareholders' equity to average assets			12.60		%				12.29		%				11.98		%				12.75		%				12.97		%				12.45		%				13.36		%
Average tangible shareholders' equity to average tangible assets (1)			6.57		%				6.21		%				5.84		%				6.49		%				6.62		%				6.39		%				7.03		%
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

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