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Jun 30, 2022
First Financial Q2 2022 Earnings Report
Announced second quarter 2022 financial results, with earnings per diluted share of $0.55.
Key Takeaways
First Financial Bancorp reported a net income of $51.5 million, or $0.55 per diluted common share, for the three months ended June 30, 2022. This compares to a net income of $41.3 million, or $0.44 per diluted common share, for the first quarter of 2022. Strong loan growth and an increase in net interest margin contributed to the improved results.
Earnings per diluted share of $0.55; $0.56 on an adjusted basis
Return on average assets of 1.28%; 1.31% on an adjusted basis
Net interest margin on FTE basis of 3.47%; 30 bp increase from linked quarter
Loan growth of $191.4 million, excluding PPP; 8.3% on an annualized basis
First Financial
First Financial
First Financial Revenue by Segment
Revenue by Segment
Leasing Business Revenue
CapyFin.com Forward Guidance
First Financial Bancorp is optimistic that their balance sheet is positioned to further benefit from additional rate increases and strong loan activity in the back half of the year. They remain diligent in their credit monitoring and are prepared to manage a downturn in the economy should it occur later in the interest rate cycle.
Positive Outlook
- Balance sheet is positioned to further benefit from additional rate increases.
- Loan activity remains strong.
- Earnings improved from the first quarter as our asset sensitive balance sheet was positively impacted by recent rate increases.
- Credit quality was stable with lower net charge-offs and nonaccrual loan balances.
- Total fee income surpassed our expectations due to record foreign exchange income, strong income from limited partnership investments and growing leasing business income.
Challenges Ahead
- Continue to experience headwinds in mortgage banking income due to the rapid rise in interest rates.
- Recent overdraft program changes led to a modest reduction in deposit account service charges and expect further decline due to these program changes in the coming periods.
- Decline in the ICRE portfolio, which was driven by elevated prepayments.
- Potential economic downturn later in the interest rate cycle.
- Mortgage banking income decreased.