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Mar 31, 2022

First Financial Q1 2022 Earnings Report

Reported solid financial results, driven by provision recapture and prudent expense management.

Key Takeaways

First Financial Bancorp reported a net income of $41.3 million, or $0.44 per diluted common share, for the three months ended March 31, 2022. The results were driven by a provision recapture of $5.8 million and improvement in net interest margin.

Earnings per diluted share of $0.44; $0.46 on an adjusted basis.

Return on average assets of 1.03%; 1.09% on an adjusted basis.

Net interest margin on FTE basis of 3.17%; 12 bp increase excluding loan fees and accretion.

Net charge-offs declined 69.3%; Provision recapture of $5.8 million.

Total Revenue
$148M
Previous year: $154M
-4.3%
EPS
$0.46
Previous year: $0.5
-8.0%
Efficiency Ratio
69.6%
Previous year: 60%
+16.0%
Net Interest Margin
3.17%
Previous year: 3.4%
-6.8%
Cash and Equivalents
$230M
Previous year: $210M
+9.6%
Free Cash Flow
$141M
Previous year: $144M
-2.6%
Total Assets
$16B
Previous year: $16.2B
-1.0%

First Financial

First Financial

First Financial Revenue by Segment

Forward Guidance

First Financial Bancorp anticipates a strong year, well-positioned for rising rates and strategic diversification.

Positive Outlook

  • Asset-sensitive balance sheet is well-positioned for rising rates
  • Strategic efforts to diversify product offerings
  • Expect improvement in net interest margin
  • Expect higher asset yields
  • Loan pipelines are strengthening

Challenges Ahead

  • Challenges related to mortgage banking
  • Wind down of PPP impacted results
  • Fee income was lower than anticipated
  • Rising rates negatively impacted mortgage banking revenue
  • Foreign exchange declined from fourth quarter levels