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Mar 31, 2021

First Financial Q1 2021 Earnings Report

Announced first quarter 2021 financial results.

Key Takeaways

First Financial Bancorp reported a net income of $47.3 million, or $0.48 per diluted common share, for the three months ended March 31, 2021. The company's performance reflects improved business climate and earnings power, with strong core financial metrics.

Earnings per diluted share of $0.48; $0.50 on an adjusted basis.

Return on average assets of 1.20%; 1.24% as adjusted.

Net interest margin FTE of 3.40%.

Repurchased 840,115 shares during the quarter.

Total Revenue
$154M
Previous year: $150M
+3.0%
EPS
$0.5
Previous year: $0.31
+61.3%
Efficiency Ratio
60%
Previous year: 59.9%
+0.2%
Tangible Book Value/Share
$12.8
Previous year: $11.8
+8.1%
Net Interest Margin
3.4%
Previous year: 3.77%
-9.8%
Cash and Equivalents
$210M
Previous year: $262M
-19.7%
Free Cash Flow
$144M
Previous year: -$132M
-209.3%
Total Assets
$16.2B
Previous year: $15.1B
+7.4%

First Financial

First Financial

Forward Guidance

The company anticipates slower loan growth in the near-term, with some acceleration in the second half of the year. Further deposit balance growth is expected in the second quarter, which may suppress loan demand and service charge income in the near-term.

Positive Outlook

  • Accelerated COVID-19 vaccine distribution.
  • Unprecedented fiscal stimulus.
  • Accommodative Federal Reserve.
  • Improved business climate.
  • Expect the allowance for credit losses to continue to decline over the course of 2021.

Challenges Ahead

  • Uncertainty remains due to the ongoing pandemic.
  • Operating environment presents challenges due to very low interest rates.
  • Muted loan demand.
  • Accelerated mortgage and HELOC payoffs.
  • Increased borrower liquidity.