Loading...
•
Jun 30, 2021
First Financial Q2 2021 Earnings Report
Reported net income of $50.9 million, or $0.52 per diluted common share.
Key Takeaways
First Financial Bancorp reported strong second quarter results with robust earnings, higher fee income, and lower credit costs. Adjusted earnings per share were $0.58, and the adjusted return on assets was 1.39%.
Earnings per diluted share of $0.52; $0.58 on an adjusted basis.
Return on average assets of 1.26%; 1.39% as adjusted.
Net interest margin FTE of 3.31%.
Provision recapture of $4.2 million.
First Financial
First Financial
Forward Guidance
First Financial anticipates further share buyback activity in the third quarter, absent higher priority capital deployment alternatives. The company expects originations to remain strong in the second half of the year, but also anticipate higher payoffs to continue due to the amount of liquidity in the market.
Positive Outlook
- Expect further reductions in credit costs in the coming periods.
- Originations to remain strong in the second half of the year.
- Capital ratios remained strong and in excess of both internal and external targets.
- Anticipate further share buyback activity in the third quarter.
- Incorporating the best practices derived from remote environment into our culture moving forward, including greater associate flexibility.
Challenges Ahead
- Anticipate higher payoffs to continue due to the amount of liquidity in the market.
- Experiencing some outflows late in the quarter.
- Loan balances declined during the quarter driven by $288.8 million of PPP forgiveness and elevated prepayments
- Lower yields on earning assets
- Additional days during the second quarter