First Financial Bancorp.: First Financial Bancorp Announces Fourth Quarter and Full Year 2023 Financial Results and Quarterly Dividend

• Earnings per diluted share of $0.60 ; $0.62 on an adjusted⁽¹⁾ basis
• Return on average assets of 1.31%; 1.37% on an adjusted⁽¹⁾ basis
• Net interest margin on FTE basis⁽¹⁾ of 4.26%; 7 bp decrease from linked quarter
• Loan growth of $286.4 million ; 10.7% on an annualized basis
• Average deposit balances increased 12.9% on an annualized basis
• Credit trends stable to improving in the quarter
• Tangible Book Value increased $1.47, or 13.5% from linked quarter
• Quarterly dividend of $0.23 approved by Board of Directors

CINCINNATI, Jan. 25, 2024 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and twelve months ended December 31, 2023.

For the three months ended December 31, 2023, the Company reported net income of $56.7 million, or $0.60 per diluted common share. These results compare to net income of $63.1 million, or $0.66 per diluted common share, for the third quarter of 2023. For the twelve months ended December 31, 2023, First Financial had earnings per diluted share of $2.69 compared to $2.30 for the same period in 2022.

Return on average assets for the fourth quarter of 2023 was 1.31% while return on average tangible common equity was 21.36%⁽¹⁾. These compare to return on average assets of 1.48% and return on average tangible common equity of 23.60%⁽¹⁾ in the third quarter of 2023.

Fourth quarter 2023 highlights include:

• Net interest margin of 4.21%, or 4.26% on a fully tax-equivalent basis⁽¹⁾
  • 7 bp decrease to 4.26% from 4.33% in the third quarter due to increasing funding costs
  • Higher asset yields and earning asset mix significantly offset 31 bp increase in cost of deposits
  • Average deposit balances increased $415.7 million with growth in money market accounts, interest bearing checking accounts, retail CDs and brokered CD's offsetting declines in noninterest bearing checking and savings accounts

• Noninterest income of $47.0 million, or $47.6 million as adjusted⁽¹⁾
  • Bannockburn income of $8.7 million included $4.6 million loss on a trade; loss was offset by lower noninterest expenses
  • Strong leasing business income of $12.9 million
  • Higher other noninterest income driven by increase in syndication fees
  • Adjusted⁽¹⁾ $0.6 million for losses on investment securities and other items not expected to recur

• Noninterest expenses of $119.1 million, or $116.8 million as adjusted⁽¹⁾
  • $2.9 million decrease from linked quarter driven primarily by lower employee costs and marketing expenses
  • Fourth quarter adjustments⁽¹⁾ include $0.9 million FDIC special assessment and other costs not expected to recur such as acquisition, severance and branch consolidation costs
  • Efficiency ratio of 59.3%; 58.0% 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.

• Accelerating loan growth during the quarter
  • Loan balances increased $286.4 million compared to the third quarter
  • Growth of 10.7% on an annualized basis
  • CRE, specialty lending, residential mortgages and finance leases drove quarterly growth

• Robust deposit growth during the quarter
  • Total deposits increased $445.2 million, or 3.4%, from linked quarter
  • Average deposit balances increased $415.7 million with growth in money market accounts, interest bearing checking accounts, retail CDs and brokered CD's offsetting declines in noninterest bearing checking and savings accounts

• Total Allowance for Credit Losses of $159.9 million ; Total quarterly provision expense of $10.2 million
  • Loans and leases - ACL of $141.4 million ; decreased 7 bps to 1.29% of total loans
  • Unfunded Commitments - ACL of $18.4 million ; increased $1.4 million from linked quarter
  • Provision expense driven by net charge-offs and loan growth; Classified assets were stable at $141.0 million
  • Annualized net charge-offs were 46 bps of total loans and included $9.2 million related to a single relationship that was previously reserved for

• Capital ratios remain solid
  • Total capital ratio increased 24 bps to 13.75%
  • Tier 1 common equity increased 25 bps to 11.85%
  • Tangible common equity increased 67 bps to 7.17%⁽¹⁾; 9.05%⁽¹⁾ excluding impact from AOCI
  • Tangible book value per share of $12.38 ⁽¹⁾; 13.5% increase from linked quarter

Additionally, the board of directors approved a quarterly dividend of $0.23 per common share for the next regularly scheduled dividend, payable on March 15, 2024 to shareholders of record as of March 1, 2024 .

Archie Brown, President and CEO, commented on the quarter, "I am pleased with our fourth quarter performance. Adjusted⁽¹⁾ earnings per share were $0.62, which resulted in an adjusted⁽¹⁾ return on assets of 1.37% and an adjusted⁽¹⁾ return on tangible common equity ratio of 22.2%. As expected, rising funding costs outpaced our asset yields, however our net interest margin remained very strong at 4.26%. Additionally, balance sheet trends were positive during the quarter, with loans increasing $286 million, or 11% on an annualized basis, and average deposits increasing $416 million, or 13% on an annualized basis."

Mr. Brown continued, "Noninterest income and expenses were both lower than we expected during the quarter. The decline in noninterest income included a $4.6 million loss on a trade at Bannockburn, however excluding this loss, foreign exchange income was within our range of expectations. Leasing income also declined during the period due to lower end of term fees and lease originations shifting to a greater mix of finance leases. While this shift increased interest income and the net interest margin, it resulted in lower noninterest income during the period. Noninterest expenses declined for the quarter primarily due to lower incentive compensation, which is tied directly to noninterest income."

Mr. Brown commented on asset quality, "Asset quality was stable for the quarter with underlying credit trends improving. Net charge-offs were 46 basis points during the quarter and were driven by a relationship that included borrower fraud . This loan had been on non-accrual for most of the year and was almost fully reserved coming into the fourth quarter. Additionally, nonperforming assets declined by 12% to 0.38% of total assets and classified asset balances were relatively unchanged from the third quarter."

Mr. Brown discussed full year results, "2023 was a record year for First Financial. Adjusted⁽¹⁾ earnings per share increased 17% from the prior year to $2.77, while adjusted⁽¹⁾ return on assets was 1.55%, adjusted ⁽¹⁾ return on tangible common equity was 25.4% and our adjusted⁽¹⁾ efficiency ratio was 56%. Total revenue of $840.2 million was the highest in the Company's history, increasing 18.5% over the prior year. Our balance sheet responded favorably to the interest rate environment, resulting in a 21% increase in net interest income. Additionally, record years from wealth management and Summit drove a 12% increase in noninterest income."

Mr. Brown continued, "We are extremely pleased with the performance of our balance sheet during 2023, especially given the turmoil in the banking industry in the first half of the year. Loan production was solid, exceeding 6% in balance growth, while average deposit balances increased 2.4% compared to the prior year. We are also very happy with the 122 basis point expansion in the tangible common equity ratio and 24% increase in tangible book value per share for the year."

Mr. Brown commented on full year asset quality, "Asset quality trends were elevated during the year. Net charge-offs increased to 33 basis points for 2023, after we achieved a record low of 6 basis points in 2022. This increase was driven by two large relationships, as well as the loss on the sale of a small portfolio of ICRE loans. Non-performing assets to total assets ended the year at 38 basis points. We believe we are well positioned to manage the coming year and we are cautiously optimistic regarding asset quality in 2024."

Mr. Brown concluded, "Finally, I'd like to commend our associates for their exemplary performance in 2023. They were client focused and executed at a very high level despite the industry uncertainty earlier in the year. During the year we have strengthened our team with the addition of talent in Wealth Management and in expansion markets, including Chicago, IL, Evansville, IN and Cleveland, OH. I'm extremely proud of the work our team accomplished in 2023 and believe we are positioned to have sustained success in 2024 and beyond."

Full detail of the Company's fourth 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 Friday, January 26, 2024 at 8:30 a.m. Eastern Time . Members of the public who would like to listen to the conference call should dial [phone] (U.S. toll free) or [phone] (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 [phone] (U.S. toll free), [phone] (U.S. local), access code 5048068. The recording will be available until February 9, 2024. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website atwww.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 December 31, 2023, the Company had $17.5 billion in assets, $10.9 billion in loans, $13.4 billion in deposits and $2.3 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.5 billion in assets under management as of December 31, 2023. The Company operated 130 full service banking centers as of December 31, 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.

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,										Twelve months ended,
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Dec. 31,
	2023		2023		2023		2023		2022		2023		2022
RESULTS OF OPERATIONS
Net income	$ 56,732		$ 63,061		$ 65,667		$ 70,403		$ 69,086		$ 255,863		$ 217,612
Net earnings per share - basic	$ 0.60		$ 0.67		$ 0.70		$ 0.75		$ 0.74		$ 2.72		$ 2.33
Net earnings per share - diluted	$ 0.60		$ 0.66		$ 0.69		$ 0.74		$ 0.73		$ 2.69		$ 2.30
Dividends declared per share	$ 0.23		$ 0.23		$ 0.23		$ 0.23		$ 0.23		$ 0.92		$ 0.92
KEY FINANCIAL RATIOS
Return on average assets	1.31 %		1.48 %		1.55 %		1.69 %		1.63 %		1.51 %		1.33 %
Return on average shareholders' equity	10.50 %		11.62 %		12.32 %		13.71 %		13.64 %		12.01 %		10.34 %
Return on average tangible shareholders' equity (1)	21.36 %		23.60 %		25.27 %		29.02 %		29.93 %		24.72 %		21.62 %
Net interest margin	4.21 %		4.28 %		4.43 %		4.51 %		4.43 %		4.36 %		3.73 %
Net interest margin (fully tax equivalent) (1)(2)	4.26 %		4.33 %		4.48 %		4.55 %		4.47 %		4.40 %		3.77 %
Ending shareholders' equity as a percent of ending assets	12.94 %		12.49 %		12.54 %		12.53 %		12.01 %		12.94 %		12.01 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	7.17 %		6.50 %		6.56 %		6.47 %		5.95 %		7.17 %		5.95 %
Risk-weighted assets (1)	8.90 %		7.88 %		8.03 %		7.87 %		7.32 %		8.90 %		7.32 %
Average shareholders' equity as a percent of average assets	12.52 %		12.70 %		12.60 %		12.29 %		11.98 %		12.53 %		12.85 %
Average tangible shareholders' equity as a percent of
average tangible assets (1)	6.57 %		6.69 %		6.57 %		6.21 %		5.84 %		6.51 %		6.59 %
Book value per share	$ 23.84		$ 22.39		$ 22.52		$ 22.29		$ 21.51		$ 23.84		$ 21.51
Tangible book value per share (1)	$ 12.38		$ 10.91		$ 11.02		$ 10.76		$ 9.97		$ 12.38		$ 9.97
Common equity tier 1 ratio (3)	11.85 %		11.60 %		11.34 %		11.00 %		10.83 %		11.85 %		10.83 %
Tier 1 ratio (3)	12.19 %		11.94 %		11.68 %		11.34 %		11.17 %		12.19 %		11.17 %
Total capital ratio (3)	13.75 %		13.51 %		13.44 %		13.11 %		13.09 %		13.75 %		13.09 %
Leverage ratio (3)	9.70 %		9.59 %		9.33 %		9.03 %		8.89 %		9.70 %		8.89 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$ 10,751,028		$ 10,623,734		$ 10,513,505		$ 10,373,302		$ 10,059,119		$ 10,566,587		$ 9,574,965
Investment securities	3,184,408		3,394,237		3,560,453		3,635,317		3,705,304		3,442,233		4,032,046
Interest-bearing deposits with other banks	548,153		386,173		329,584		318,026		372,054		396,089		314,552
Total earning assets	$ 14,483,589		$ 14,404,144		$ 14,403,542		$ 14,326,645		$ 14,136,477		$ 14,404,909		$ 13,921,563
Total assets	$ 17,124,955		$ 16,951,389		$ 16,968,055		$ 16,942,999		$ 16,767,598		$ 16,997,223		$ 16,382,730
Noninterest-bearing deposits	$ 3,368,024		$ 3,493,305		$ 3,663,419		$ 3,954,915		$ 4,225,192		$ 3,617,961		$ 4,196,735
Interest-bearing deposits	9,834,819		9,293,860		9,050,464		8,857,226		8,407,114		9,261,866		8,383,529
Total deposits	$ 13,202,843		$ 12,787,165		$ 12,713,883		$ 12,812,141		$ 12,632,306		$ 12,879,827		$ 12,580,264
Borrowings	$ 1,083,954		$ 1,403,071		$ 1,523,699		$ 1,434,338		$ 1,489,088		$ 1,360,420		$ 1,177,013
Shareholders' equity	$ 2,144,482		$ 2,153,601		$ 2,137,765		$ 2,082,210		$ 2,009,564		$ 2,129,751		$ 2,105,339
CREDIT QUALITY RATIOS
Allowance to ending loans	1.29 %		1.36 %		1.41 %		1.36 %		1.29 %		1.29 %		1.29 %
Allowance to nonaccrual loans	215.10 %		193.75 %		276.70 %		409.46 %		464.58 %		215.10 %		464.58 %
Allowance to nonperforming loans	215.10 %		193.75 %		276.70 %		409.46 %		335.94 %		215.10 %		335.94 %
Nonperforming loans to total loans	0.60 %		0.70 %		0.51 %		0.33 %		0.38 %		0.60 %		0.38 %
Nonaccrual loans to total loans	0.60 %		0.70 %		0.51 %		0.33 %		0.28 %		0.60 %		0.28 %
Nonperforming assets to ending loans, plus OREO	0.60 %		0.71 %		0.51 %		0.33 %		0.39 %		0.60 %		0.39 %
Nonperforming assets to total assets	0.38 %		0.44 %		0.32 %		0.21 %		0.23 %		0.38 %		0.23 %
Classified assets to total assets	0.80 %		0.82 %		0.81 %		0.94 %		0.75 %		0.80 %		0.75 %
Net charge-offs to average loans (annualized)	0.46 %		0.61 %		0.22 %		0.00 %		(0.01) %		0.33 %		0.06 %

⁽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⁾ December 31, 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,						Twelve months ended,
	Dec. 31,						Dec. 31,
	2023		2022		% Change		2023		2022		% Change
Interest income
Loans and leases, including fees	$ 197,416		$ 152,299		29.6 %		$ 743,770		$ 458,742		62.1 %
Investment securities
Taxable	30,294		30,248		0.2 %		125,520		102,314		22.7 %
Tax-exempt	3,402		4,105		(17.1) %		13,901		18,466		(24.7) %
Total investment securities interest	33,696		34,353		(1.9) %		139,421		120,780		15.4 %
Other earning assets	7,325		3,262		124.6 %		19,813		5,484		261.3 %
Total interest income	238,437		189,914		25.5 %		903,004		585,006		54.4 %
Interest expense
Deposits	69,193		16,168		328.0 %		202,010		28,140		617.9 %
Short-term borrowings	10,277		11,091		(7.3) %		53,378		19,132		179.0 %
Long-term borrowings	5,202		4,759		9.3 %		19,846		18,591		6.8 %
Total interest expense	84,672		32,018		164.5 %		275,234		65,863		317.9 %
Net interest income	153,765		157,896		(2.6) %		627,770		519,143		20.9 %
Provision for credit losses-loans and leases	8,804		8,689		1.3 %		43,074		6,731		539.9 %
Provision for credit losses-unfunded commitments	1,426		1,341		6.3 %		33		4,982		(99.3) %
Net interest income after provision for credit losses	143,535		147,866		(2.9) %		584,663		507,430		15.2 %
Noninterest income
Service charges on deposit accounts	6,846		6,406		6.9 %		27,289		28,062		(2.8) %
Wealth management fees	6,091		5,648		7.8 %		26,081		23,506		11.0 %
Bankcard income	3,349		3,736		(10.4) %		14,039		14,380		(2.4) %
Client derivative fees	711		1,822		(61.0) %		5,155		5,441		(5.3) %
Foreign exchange income	8,730		19,592		(55.4) %		54,051		54,965		(1.7) %
Leasing business income	12,856		11,124		15.6 %		51,322		31,574		62.5 %
Net gains from sales of loans	2,957		2,206		34.0 %		13,217		15,048		(12.2) %
Net gain (loss) on sale of investment securities	(851)		(393)		116.5 %		(1,258)		(569)		121.1 %
Net gain (loss) on equity securities	202		1,315		(84.6) %		206		(639)		(132.2) %
Other	6,102		4,579		33.3 %		22,320		17,873		24.9 %
Total noninterest income	46,993		56,035		(16.1) %		212,422		189,641		12.0 %
Noninterest expenses
Salaries and employee benefits	70,637		73,621		(4.1) %		292,731		269,368		8.7 %
Net occupancy	5,890		5,434		8.4 %		22,990		22,208		3.5 %
Furniture and equipment	3,523		3,234		8.9 %		13,543		13,224		2.4 %
Data processing	8,488		8,567		(0.9) %		35,852		33,662		6.5 %
Marketing	2,087		2,198		(5.1) %		9,647		8,744		10.3 %
Communication	707		690		2.5 %		2,729		2,683		1.7 %
Professional services	3,148		3,015		4.4 %		9,926		9,734		2.0 %
State intangible tax	984		974		1.0 %		3,914		4,285		(8.7) %
FDIC assessments	3,651		2,173		68.0 %		11,948		7,194		66.1 %
Intangible amortization	2,601		2,573		1.1 %		10,402		11,185		(7.0) %
Leasing business expense	8,955		6,061		47.7 %		32,500		20,363		59.6 %
Other	8,466		15,902		(46.8) %		32,307		52,699		(38.7) %
Total noninterest expenses	119,137		124,442		(4.3) %		478,489		455,349		5.1 %
Income before income taxes	71,391		79,459		(10.2) %		318,596		241,722		31.8 %
Income tax expense (benefit)	14,659		10,373		41.3 %		62,733		24,110		160.2 %
Net income	$ 56,732		$ 69,086		(17.9) %		$ 255,863		$ 217,612		17.6 %
ADDITIONAL DATA
Net earnings per share - basic	$ 0.60		$ 0.74				$ 2.72		$ 2.33
Net earnings per share - diluted	$ 0.60		$ 0.73				$ 2.69		$ 2.30
Dividends declared per share	$ 0.23		$ 0.23				$ 0.92		$ 0.92
Return on average assets	1.31 %		1.63 %				1.51 %		1.33 %
Return on average shareholders' equity	10.50 %		13.64 %				12.01 %		10.34 %
Interest income	$ 238,437		$ 189,914		25.5 %		$ 903,004		$ 585,006		54.4 %
Tax equivalent adjustment	1,672		1,553		7.7 %		6,356		6,357		0.0 %
Interest income - tax equivalent	240,109		191,467		25.4 %		909,360		591,363		53.8 %
Interest expense	84,672		32,018		164.5 %		275,234		65,863		317.9 %
Net interest income - tax equivalent	$ 155,437		$ 159,449		(2.5) %		$ 634,126		$ 525,500		20.7 %
Net interest margin	4.21 %		4.43 %				4.36 %		3.73 %
Net interest margin (fully tax equivalent) (1)	4.26 %		4.47 %				4.40 %		3.77 %
Full-time equivalent employees	2,129		2,070

⁽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
	Fourth		Third		Second		First		Year to		% Change
	Quarter		Quarter		Quarter		Quarter		Date		Linked Qtr.
Interest income
Loans and leases, including fees	$ 197,416		$ 192,261		$ 184,387		$ 169,706		$ 743,770		2.7 %
Investment securities
Taxable	30,294		31,297		32,062		31,867		125,520		(3.2) %
Tax-exempt	3,402		3,522		3,513		3,464		13,901		(3.4) %
Total investment securities interest	33,696		34,819		35,575		35,331		139,421		(3.2) %
Other earning assets	7,325		5,011		3,933		3,544		19,813		46.2 %
Total interest income	238,437		232,091		223,895		208,581		903,004		2.7 %
Interest expense
Deposits	69,193		57,069		44,292		31,456		202,010		21.2 %
Short-term borrowings	10,277		14,615		15,536		12,950		53,378		(29.7) %
Long-term borrowings	5,202		4,952		4,835		4,857		19,846		5.0 %
Total interest expense	84,672		76,636		64,663		49,263		275,234		10.5 %
Net interest income	153,765		155,455		159,232		159,318		627,770		(1.1) %
Provision for credit losses-loans and leases	8,804		12,907		12,719		8,644		43,074		(31.8) %
Provision for credit losses-unfunded commitments	1,426		(1,234)		(1,994)		1,835		33		(215.6) %
Net interest income after provision for credit losses	143,535		143,782		148,507		148,839		584,663		(0.2) %
Noninterest income
Service charges on deposit accounts	6,846		6,957		6,972		6,514		27,289		(1.6) %
Wealth management fees	6,091		6,943		6,713		6,334		26,081		(12.3) %
Bankcard income	3,349		3,406		3,692		3,592		14,039		(1.7) %
Client derivative fees	711		1,612		1,827		1,005		5,155		(55.9) %
Foreign exchange income	8,730		13,384		15,039		16,898		54,051		(34.8) %
Leasing business income	12,856		14,537		10,265		13,664		51,322		(11.6) %
Net gains from sales of loans	2,957		4,086		3,839		2,335		13,217		(27.6) %
Net gain (loss) on sale of investment securities	(851)		(4)		(384)		(19)		(1,258)		N/M
Net gain (loss) on equity securities	202		(54)		(82)		140		206		474.1 %
Other	6,102		5,761		5,377		5,080		22,320		5.9 %
Total noninterest income	46,993		56,628		53,258		55,543		212,422		(17.0) %
Noninterest expenses
Salaries and employee benefits	70,637		75,641		74,199		72,254		292,731		(6.6) %
Net occupancy	5,890		5,809		5,606		5,685		22,990		1.4 %
Furniture and equipment	3,523		3,341		3,362		3,317		13,543		5.4 %
Data processing	8,488		8,473		9,871		9,020		35,852		0.2 %
Marketing	2,087		2,598		2,802		2,160		9,647		(19.7) %
Communication	707		744		644		634		2,729		(5.0) %
Professional services	3,148		2,524		2,308		1,946		9,926		24.7 %
State intangible tax	984		981		964		985		3,914		0.3 %
FDIC assessments	3,651		2,665		2,806		2,826		11,948		37.0 %
Intangible amortization	2,601		2,600		2,601		2,600		10,402		0.0 %
Leasing business expense	8,955		8,877		6,730		7,938		32,500		0.9 %
Other	8,466		7,791		8,722		7,328		32,307		8.7 %
Total noninterest expenses	119,137		122,044		120,615		116,693		478,489		(2.4) %
Income before income taxes	71,391		78,366		81,150		87,689		318,596		(8.9) %
Income tax expense (benefit)	14,659		15,305		15,483		17,286		62,733		(4.2) %
Net income	$ 56,732		$ 63,061		$ 65,667		$ 70,403		$ 255,863		(10.0) %
ADDITIONAL DATA
Net earnings per share - basic	$ 0.60		$ 0.67		$ 0.70		$ 0.75		$ 2.72
Net earnings per share - diluted	$ 0.60		$ 0.66		$ 0.69		$ 0.74		$ 2.69
Dividends declared per share	$ 0.23		$ 0.23		$ 0.23		$ 0.23		$ 0.92
Return on average assets	1.31 %		1.48 %		1.55 %		1.69 %		1.51 %
Return on average shareholders' equity	10.50 %		11.62 %		12.32 %		13.71 %		12.01 %
Interest income	$ 238,437		$ 232,091		$ 223,895		$ 208,581		$ 903,004		2.7 %
Tax equivalent adjustment	1,672		1,659		1,601		1,424		6,356		0.8 %
Interest income - tax equivalent	240,109		233,750		225,496		210,005		909,360		2.7 %
Interest expense	84,672		76,636		64,663		49,263		275,234		10.5 %
Net interest income - tax equivalent	$ 155,437		$ 157,114		$ 160,833		$ 160,742		$ 634,126		(1.1) %
Net interest margin	4.21 %		4.28 %		4.43 %		4.51 %		4.36 %
Net interest margin (fully tax equivalent) (1)	4.26 %		4.33 %		4.48 %		4.55 %		4.40 %
Full-time equivalent employees	2,129		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)
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		% Change		% Change
	2023		2023		2023		2023		2022		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$ 213,059		$ 220,335		$ 217,385		$ 199,835		$ 207,501		(3.3) %		2.7 %
Interest-bearing deposits with other banks	792,960		452,867		485,241		305,465		388,182		75.1 %		104.3 %
Investment securities available-for-sale	3,021,126		3,044,361		3,249,404		3,384,949		3,409,648		(0.8) %		(11.4) %
Investment securities held-to-maturity	80,321		81,236		82,372		83,070		84,021		(1.1) %		(4.4) %
Other investments	129,945		133,725		141,892		143,606		143,160		(2.8) %		(9.2) %
Loans held for sale	9,213		12,391		15,267		9,280		7,918		(25.6) %		16.4 %
Loans and leases
Commercial and industrial	3,501,221		3,420,873		3,433,162		3,449,289		3,410,272		2.3 %		2.7 %
Lease financing	474,817		399,973		360,801		273,898		236,124		18.7 %		101.1 %
Construction real estate	564,832		578,824		536,464		525,906		512,050		(2.4) %		10.3 %
Commercial real estate	4,080,939		3,992,654		4,048,460		4,056,627		4,052,759		2.2 %		0.7 %
Residential real estate	1,333,674		1,293,470		1,221,484		1,145,069		1,092,265		3.1 %		22.1 %
Home equity	758,676		743,991		728,711		724,672		733,791		2.0 %		3.4 %
Installment	159,078		160,648		165,216		204,372		209,895		(1.0) %		(24.2) %
Credit card	59,939		56,386		55,911		53,552		51,815		6.3 %		15.7 %
Total loans	10,933,176		10,646,819		10,550,209		10,433,385		10,298,971		2.7 %		6.2 %
Less:
Allowance for credit losses	(141,433)		(145,201)		(148,646)		(141,591)		(132,977)		(2.6) %		6.4 %
Net loans	10,791,743		10,501,618		10,401,563		10,291,794		10,165,994		2.8 %		6.2 %
Premises and equipment	194,740		192,572		192,077		188,959		189,080		1.1 %		3.0 %
Operating leases	153,214		136,883		132,272		153,986		91,738		11.9 %		67.0 %
Goodwill	1,005,868		1,005,868		1,005,828		1,005,738		1,001,507		0.0 %		0.4 %
Other intangibles	83,949		86,378		88,662		91,169		93,919		(2.8) %		(10.6) %
Accrued interest and other assets	1,056,762		1,186,618		1,078,186		1,076,033		1,220,648		(10.9) %		(13.4) %
Total Assets	$ 17,532,900		$ 17,054,852		$ 17,090,149		$ 16,933,884		$ 17,003,316		2.8 %		3.1 %
LIABILITIES
Deposits
Interest-bearing demand	$ 2,993,219		$ 2,880,617		$ 2,919,472		$ 2,761,811		$ 3,037,153		3.9 %		(1.4) %
Savings	4,331,228		4,023,455		3,785,445		3,746,403		3,828,139		7.6 %		13.1 %
Time	2,718,390		2,572,909		2,484,780		2,336,368		1,700,705		5.7 %		59.8 %
Total interest-bearing deposits	10,042,837		9,476,981		9,189,697		8,844,582		8,565,997		6.0 %		17.2 %
Noninterest-bearing	3,317,960		3,438,572		3,605,181		3,830,102		4,135,180		(3.5) %		(19.8) %
Total deposits	13,360,797		12,915,553		12,794,878		12,674,684		12,701,177		3.4 %		5.2 %
FHLB short-term borrowings	800,000		755,000		1,050,300		1,089,400		1,130,000		6.0 %		(29.2) %
Other	137,814		219,188		165,983		128,160		157,156		(37.1) %		(12.3) %
Total short-term borrowings	937,814		974,188		1,216,283		1,217,560		1,287,156		(3.7) %		(27.1) %
Long-term debt	344,115		340,902		339,963		342,647		346,672		0.9 %		(0.7) %
Total borrowed funds	1,281,929		1,315,090		1,556,246		1,560,207		1,633,828		(2.5) %		(21.5) %
Accrued interest and other liabilities	622,200		694,700		595,606		577,497		626,938		(10.4) %		(0.8) %
Total Liabilities	15,264,926		14,925,343		14,946,730		14,812,388		14,961,943		2.3 %		2.0 %
SHAREHOLDERS' EQUITY
Common stock	1,638,972		1,636,054		1,632,659		1,629,428		1,634,605		0.2 %		0.3 %
Retained earnings	1,136,718		1,101,905		1,060,715		1,016,893		968,237		3.2 %		17.4 %
Accumulated other comprehensive income (loss)	(309,819)		(410,005)		(353,010)		(328,059)		(358,663)		(24.4) %		(13.6) %
Treasury stock, at cost	(197,897)		(198,445)		(196,945)		(196,766)		(202,806)		(0.3) %		(2.4) %
Total Shareholders' Equity	2,267,974		2,129,509		2,143,419		2,121,496		2,041,373		6.5 %		11.1 %
Total Liabilities and Shareholders' Equity	$ 17,532,900		$ 17,054,852		$ 17,090,149		$ 16,933,884		$ 17,003,316		2.8 %		3.1 %

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages										Year-to-Date Averages
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Dec. 31,
	2023		2023		2023		2023		2022		2023		2022
ASSETS
Cash and due from banks	$ 214,678		$ 211,670		$ 221,527		$ 218,724		$ 218,216		$ 216,625		$ 233,925
Interest-bearing deposits with other banks	548,153		386,173		329,584		318,026		372,054		396,089		314,552
Investment securities	3,184,408		3,394,237		3,560,453		3,635,317		3,705,304		3,442,233		4,032,046
Loans held for sale	12,547		15,420		11,856		5,531		8,639		11,369		12,968
Loans and leases
Commercial and industrial	3,422,381		3,443,615		3,469,683		3,456,681		3,249,252		3,447,984		2,979,273
Lease financing	419,179		371,598		323,819		252,219		203,790		342,243		153,380
Construction real estate	540,314		547,884		518,190		536,294		501,787		535,715		476,597
Commercial real estate	4,060,733		4,024,798		4,050,946		4,017,021		4,028,944		4,038,457		4,040,365
Residential real estate	1,320,670		1,260,249		1,181,053		1,115,889		1,066,859		1,220,138		976,775
Home equity	750,925		735,251		726,333		728,185		735,039		735,236		721,048
Installment	160,242		164,092		172,147		205,934		208,484		175,447		159,807
Credit card	64,037		60,827		59,478		55,548		56,325		59,998		54,752
Total loans	10,738,481		10,608,314		10,501,649		10,367,771		10,050,480		10,555,218		9,561,997
Less:
Allowance for credit losses	(149,398)		(150,297)		(145,578)		(136,419)		(127,541)		(145,472)		(125,001)
Net loans	10,589,083		10,458,017		10,356,071		10,231,352		9,922,939		10,409,746		9,436,996
Premises and equipment	194,435		194,228		190,583		190,346		189,342		192,414		191,191
Operating leases	139,331		132,984		138,725		107,092		88,365		129,631		76,967
Goodwill	1,005,870		1,005,844		1,005,791		1,005,713		998,575		1,005,805		999,611
Other intangibles	85,101		87,427		89,878		92,587		95,256		88,724		99,081
Accrued interest and other assets	1,151,349		1,065,389		1,063,587		1,138,311		1,168,908		1,104,587		985,393
Total Assets	$ 17,124,955		$ 16,951,389		$ 16,968,055		$ 16,942,999		$ 16,767,598		$ 16,997,223		$ 16,382,730
LIABILITIES
Deposits
Interest-bearing demand	$ 2,988,086		$ 2,927,416		$ 2,906,855		$ 2,906,712		$ 3,103,091		$ 2,932,477		$ 3,158,560
Savings	4,235,658		3,919,590		3,749,902		3,818,807		3,943,342		3,932,100		4,049,883
Time	2,611,075		2,446,854		2,393,707		2,131,707		1,360,681		2,397,289		1,175,086
Total interest-bearing deposits	9,834,819		9,293,860		9,050,464		8,857,226		8,407,114		9,261,866		8,383,529
Noninterest-bearing	3,368,024		3,493,305		3,663,419		3,954,915		4,225,192		3,617,961		4,196,735
Total deposits	13,202,843		12,787,165		12,713,883		12,812,141		12,632,306		12,879,827		12,580,264
Federal funds purchased and securities sold
under agreements to repurchase	3,586		10,788		21,881		26,380		16,167		15,583		29,526
FHLB short-term borrowings	554,826		878,199		1,028,207		925,144		944,320		845,666		672,928
Other	185,221		175,682		132,088		139,195		184,439		158,221		115,041
Total short-term borrowings	743,633		1,064,669		1,182,176		1,090,719		1,144,926		1,019,470		817,495
Long-term debt	340,321		338,402		341,523		343,619		344,162		340,950		359,518
Total borrowed funds	1,083,954		1,403,071		1,523,699		1,434,338		1,489,088		1,360,420		1,177,013
Accrued interest and other liabilities	693,676		607,552		592,708		614,310		636,640		627,225		520,114
Total Liabilities	14,980,473		14,797,788		14,830,290		14,860,789		14,758,034		14,867,472		14,277,391
SHAREHOLDERS' EQUITY
Common stock	1,637,197		1,634,102		1,631,230		1,633,396		1,632,941		1,633,992		1,634,558
Retained earnings	1,111,786		1,076,515		1,034,092		989,777		941,987		1,053,441		887,826
Accumulated other comprehensive loss	(406,265)		(358,769)		(330,263)		(339,450)		(361,284)		(358,870)		(207,778)
Treasury stock, at cost	(198,236)		(198,247)		(197,294)		(201,513)		(204,080)		(198,812)		(209,267)
Total Shareholders' Equity	2,144,482		2,153,601		2,137,765		2,082,210		2,009,564		2,129,751		2,105,339
Total Liabilities and Shareholders' Equity	$ 17,124,955		$ 16,951,389		$ 16,968,055		$ 16,942,999		$ 16,767,598		$ 16,997,223		$ 16,382,730

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages																		Year-to-Date Averages
		December 31, 2023						September 30, 2023						December 31, 2022						December 31, 2023				December 31, 2022
		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield		Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities		$ 3,184,408		$ 33,696		4.20 %		$ 3,394,237		$ 34,819		4.07 %		$ 3,705,304		$ 34,353		3.68 %		$ 3,442,233		4.05 %		$ 4,032,046		3.00 %
Interest-bearing deposits with other banks		548,153		7,325		5.30 %		386,173		5,011		5.15 %		372,054		3,262		3.48 %		396,089		5.00 %		314,552		1.74 %
Gross loans (1)		10,751,028		197,416		7.29 %		10,623,734		192,261		7.18 %		10,059,119		152,299		6.01 %		10,566,587		7.04 %		9,574,965		4.79 %
Total earning assets		14,483,589		238,437		6.53 %		14,404,144		232,091		6.39 %		14,136,477		189,914		5.33 %		14,404,909		6.27 %		13,921,563		4.20 %
Nonearning assets
Allowance for credit losses		(149,398)						(150,297)						(127,541)						(145,472)				(125,001)
Cash and due from banks		214,678						211,670						218,216						216,625				233,925
Accrued interest and other assets		2,576,086						2,485,872						2,540,446						2,521,161				2,352,243
Total assets		$ 17,124,955						$ 16,951,389						$ 16,767,598						$ 16,997,223				$ 16,382,730
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$ 2,988,086		$ 14,480		1.92 %		$ 2,927,416		$ 12,953		1.76 %		$ 3,103,091		$ 5,195		0.66 %		$ 2,932,477		1.45 %		$ 3,158,560		0.28 %
Savings		4,235,658		26,632		2.49 %		3,919,590		19,853		2.01 %		3,943,342		4,819		0.48 %		3,932,100		1.73 %		4,049,883		0.22 %
Time		2,611,075		28,081		4.27 %		2,446,854		24,263		3.93 %		1,360,681		6,154		1.79 %		2,397,289		3.81 %		1,175,086		0.88 %
Total interest-bearing deposits		9,834,819		69,193		2.79 %		9,293,860		57,069		2.44 %		8,407,114		16,168		0.76 %		9,261,866		2.18 %		8,383,529		0.34 %
Borrowed funds
Short-term borrowings		743,633		10,277		5.48 %		1,064,669		14,615		5.45 %		1,144,926		11,091		3.84 %		1,019,470		5.24 %		817,495		2.34 %
Long-term debt		340,321		5,202		6.06 %		338,402		4,952		5.81 %		344,162		4,759		5.49 %		340,950		5.82 %		359,518		5.17 %
Total borrowed funds		1,083,954		15,479		5.67 %		1,403,071		19,567		5.53 %		1,489,088		15,850		4.22 %		1,360,420		5.38 %		1,177,013		3.20 %
Total interest-bearing liabilities		10,918,773		84,672		3.08 %		10,696,931		76,636		2.84 %		9,896,202		32,018		1.28 %		10,622,286		2.59 %		9,560,542		0.69 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		3,368,024						3,493,305						4,225,192						3,617,961				4,196,735
Other liabilities		693,676						607,552						636,640						627,225				520,114
Shareholders' equity		2,144,482						2,153,601						2,009,564						2,129,751				2,105,339
Total liabilities & shareholders' equity		$ 17,124,955						$ 16,951,389						$ 16,767,598						$ 16,997,223				$ 16,382,730
Net interest income		$ 153,765						$ 155,455						$ 157,896						$ 627,770				$ 519,143
Net interest spread						3.45 %						3.55 %						4.05 %				3.68 %				3.51 %
Net interest margin						4.21 %						4.28 %						4.43 %				4.36 %				3.73 %
Tax equivalent adjustment						0.05 %						0.05 %						0.04 %				0.04 %				0.04 %
Net interest margin (fully tax equivalent)						4.26 %						4.33 %						4.47 %				4.40 %				3.77 %
(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		$ 1,097		$ (2,220)		$ (1,123)		$ 4,855		$ (5,512)		$ (657)		$ 42,530		$ (23,889)		$ 18,641
Interest-bearing deposits with other banks		149		2,165		2,314		1,710		2,353		4,063		10,250		4,079		14,329
Gross loans (2)		2,818		2,337		5,155		32,412		12,705		45,117		215,229		69,799		285,028
Total earning assets		4,064		2,282		6,346		38,977		9,546		48,523		268,009		49,989		317,998
Interest-bearing liabilities
Total interest-bearing deposits		$ 8,318		$ 3,806		$ 12,124		$ 42,980		$ 10,045		$ 53,025		$ 154,713		$ 19,157		$ 173,870
Borrowed funds
Short-term borrowings		99		(4,437)		(4,338)		4,732		(5,546)		(814)		23,671		10,575		34,246
Long-term debt		221		29		250		502		(59)		443		2,336		(1,081)		1,255
Total borrowed funds		320		(4,408)		(4,088)		5,234		(5,605)		(371)		26,007		9,494		35,501
Total interest-bearing liabilities		8,638		(602)		8,036		48,214		4,440		52,654		180,720		28,651		209,371
Net interest income (1)		$ (4,574)		$ 2,884		$ (1,690)		$ (9,237)		$ 5,106		$ (4,131)		$ 87,289		$ 21,338		$ 108,627
(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)
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Full Year		Full Year
	2023		2023		2023		2023		2022		2023		2022
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$ 145,201		$ 148,646		$ 141,591		$ 132,977		$ 124,096		$ 132,977		$ 131,992
Provision for credit losses	8,804		12,907		12,719		8,644		8,689		43,074		6,731
Gross charge-offs
Commercial and industrial	6,866		9,207		2,372		730		334		19,175		5,899
Lease financing	4,244		76		90		13		0		4,423		152
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	1		6,008		2,648		66		245		8,723		3,667
Residential real estate	9		10		20		0		79		39		224
Home equity	174		54		21		91		72		340		160
Installment	2,054		1,349		1,515		1,524		717		6,442		1,549
Credit card	363		319		274		217		212		1,173		907
Total gross charge-offs	13,711		17,023		6,940		2,641		1,659		40,315		12,558
Recoveries
Commercial and industrial	459		335		631		109		293		1,534		939
Lease financing	52		1		1		1		0		55		49
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	93		39		153		2,238		1,327		2,523		4,304
Residential real estate	24		44		113		66		15		247		174
Home equity	178		125		232		80		88		615		898
Installment	210		87		90		54		68		441		165
Credit card	123		40		56		63		60		282		283
Total recoveries	1,139		671		1,276		2,611		1,851		5,697		6,812
Total net charge-offs	12,572		16,352		5,664		30		(192)		34,618		5,746
Ending allowance for credit losses	$ 141,433		$ 145,201		$ 148,646		$ 141,591		$ 132,977		$ 141,433		$ 132,977
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.74 %		1.02 %		0.20 %		0.07 %		0.01 %		0.51 %		0.17 %
Lease financing	3.97 %		0.08 %		0.11 %		0.02 %		0.00 %		1.28 %		0.07 %
Construction real estate	0.00 %		0.00 %		0.00 %		0.00 %		0.00 %		0.00 %		0.00 %
Commercial real estate	(0.01) %		0.59 %		0.25 %		(0.22) %		(0.11) %		0.15 %		(0.02) %
Residential real estate	0.00 %		(0.01) %		(0.03) %		(0.02) %		0.02 %		(0.02) %		0.01 %
Home equity	0.00 %		(0.04) %		(0.12) %		0.01 %		(0.01) %		(0.04) %		(0.10) %
Installment	4.57 %		3.05 %		3.32 %		2.89 %		1.24 %		3.42 %		0.87 %
Credit card	1.49 %		1.82 %		1.47 %		1.12 %		1.07 %		1.49 %		1.14 %
Total net charge-offs	0.46 %		0.61 %		0.22 %		0.00 %		(0.01) %		0.33 %		0.06 %
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$ 15,746		$ 17,152		$ 21,508		$ 13,971		$ 8,242		$ 15,746		$ 8,242
Lease financing	3,610		7,731		4,833		175		178		3,610		178
Construction real estate	0		0		0		0		0		0		0
Commercial real estate	27,984		33,019		11,876		5,362		5,786		27,984		5,786
Residential real estate	14,067		12,328		11,697		11,129		10,691		14,067		10,691
Home equity	3,476		3,937		3,239		3,399		3,123		3,476		3,123
Installment	870		774		568		544		603		870		603
Nonaccrual loans	65,753		74,941		53,721		34,580		28,623		65,753		28,623
Accruing troubled debt restructurings (TDRs) (2)	N/A		N/A		N/A		N/A		10,960		N/A		10,960
Total nonperforming loans (2)	65,753		74,941		53,721		34,580		39,583		65,753		39,583
Other real estate owned (OREO)	106		142		281		191		191		106		191
Total nonperforming assets (2)	65,859		75,083		54,002		34,771		39,774		65,859		39,774
Accruing loans past due 90 days or more	2,028		698		873		159		857		2,028		857
Total underperforming assets (2)	$ 67,887		$ 75,781		$ 54,875		$ 34,930		$ 40,631		$ 67,887		$ 40,631
Total classified assets (2)	$ 140,995		$ 140,552		$ 138,909		$ 158,984		$ 128,137		$ 140,995		$ 128,137
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	215.10 %		193.75 %		276.70 %		409.46 %		464.58 %		215.10 %		464.58 %
Nonperforming loans	215.10 %		193.75 %		276.70 %		409.46 %		335.94 %		215.10 %		335.94 %
Total ending loans	1.29 %		1.36 %		1.41 %		1.36 %		1.29 %		1.29 %		1.29 %
Nonperforming loans to total loans	0.60 %		0.70 %		0.51 %		0.33 %		0.38 %		0.60 %		0.38 %
Nonaccrual loans to total loans	0.60 %		0.70 %		0.51 %		0.33 %		0.28 %		0.60 %		0.28 %
Nonperforming assets to
Ending loans, plus OREO	0.60 %		0.71 %		0.51 %		0.33 %		0.39 %		0.60 %		0.39 %
Total assets	0.38 %		0.44 %		0.32 %		0.21 %		0.23 %		0.38 %		0.23 %
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.60 %		0.71 %		0.51 %		0.33 %		0.28 %		0.60 %		0.28 %
Total assets	0.38 %		0.44 %		0.32 %		0.21 %		0.17 %		0.38 %		0.17 %
Classified assets to total assets	0.80 %		0.82 %		0.81 %		0.94 %		0.75 %		0.80 %		0.75 %

⁽¹⁾ Nonaccrual loans include nonaccrual TDRs of $10.0 million as of December 31, 2022.

⁽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)
	Three Months Ended,										Twelve months ended,
	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2023		2023		2023		2023		2022		2023		2022
PER COMMON SHARE
Market Price
High	$ 24.28		$ 24.02		$ 22.27		$ 26.24		$ 26.68		$ 26.24		$ 26.73
Low	$ 17.37		$ 19.19		$ 18.20		$ 21.30		$ 21.56		$ 17.37		$ 19.02
Close	$ 23.75		$ 19.60		$ 20.44		$ 21.77		$ 24.23		$ 23.75		$ 24.23
Average shares outstanding - basic	94,063,570		94,030,275		93,924,068		93,732,532		93,590,674		93,938,772		93,528,712
Average shares outstanding - diluted	95,126,316		95,126,269		95,169,348		94,960,158		94,831,788		95,096,067		94,586,851
Ending shares outstanding	95,141,244		95,117,180		95,185,483		95,190,406		94,891,099		95,141,244		94,891,099
Total shareholders' equity	$ 2,267,974		$ 2,129,509		$ 2,143,419		$ 2,121,496		$ 2,041,373		$ 2,267,974		$ 2,041,373
REGULATORY CAPITAL	Preliminary										Preliminary
Common equity tier 1 capital	$ 1,568,815		$ 1,527,793		$ 1,481,913		$ 1,432,332		$ 1,399,420		$ 1,568,815		$ 1,399,420
Common equity tier 1 capital ratio	11.85 %		11.60 %		11.34 %		11.00 %		10.83 %		11.85 %		10.83 %
Tier 1 capital	$ 1,613,480		$ 1,572,248		$ 1,526,362		$ 1,476,734		$ 1,443,698		$ 1,613,480		$ 1,443,698
Tier 1 ratio	12.19 %		11.94 %		11.68 %		11.34 %		11.17 %		12.19 %		11.17 %
Total capital	$ 1,820,285		$ 1,778,993		$ 1,756,968		$ 1,707,270		$ 1,691,255		$ 1,820,285		$ 1,691,255
Total capital ratio	13.75 %		13.51 %		13.44 %		13.11 %		13.09 %		13.75 %		13.09 %
Total capital in excess of minimum requirement	$ 430,482		$ 396,083		$ 384,735		$ 339,585		$ 334,316		$ 430,482		$ 334,316
Total risk-weighted assets	$ 13,236,221		$ 13,170,574		$ 13,068,888		$ 13,025,567		$ 12,923,233		$ 13,236,221		$ 12,923,233
Leverage ratio	9.70 %		9.59 %		9.33 %		9.03 %		8.89 %		9.70 %		8.89 %
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	12.94 %		12.49 %		12.54 %		12.53 %		12.01 %		12.94 %		12.01 %
Ending tangible shareholders' equity to ending tangible assets (1)	7.17 %		6.50 %		6.56 %		6.47 %		5.95 %		7.17 %		5.95 %
Average shareholders' equity to average assets	12.52 %		12.70 %		12.60 %		12.29 %		11.98 %		12.53 %		12.85 %
Average tangible shareholders' equity to average tangible assets (1)	6.57 %		6.69 %		6.57 %		6.21 %		5.84 %		6.51 %		6.59 %
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

SOURCE First Financial Bancorp.