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Sep 30, 2021
First Financial Q3 2021 Earnings Report
Announced third quarter financial results, with strong earnings, loan growth, and fee income, alongside lower credit costs and improving credit trends.
Key Takeaways
First Financial Bancorp reported a net income of $60.0 million, or $0.63 per diluted common share, for the three months ended September 30, 2021. The results were the highest since the MainSource merger in 2018, driven by a significant provision recapture of $10.1 million and strong mortgage and wealth management revenues.
Earnings per diluted share of $0.63 on both GAAP and adjusted basis.
Return on average assets of 1.49% on both GAAP and adjusted basis.
Net interest margin FTE of 3.32%.
Loan growth of $74.8 million, excluding decline in PPP loans.
First Financial
First Financial
First Financial Revenue by Segment
Revenue by Segment
Bankcard Income Revenue
CapyFin.comClient Derivative Fees Revenue
CapyFin.comForeign Exchange Income Revenue
CapyFin.com Forward Guidance
First Financial Bancorp expects further reductions in credit costs in the fourth quarter of 2021 and the first part of 2022, driven by optimism for further economic recovery.
Positive Outlook
- Expecting further reductions in credit costs in Q4 2021 and early 2022.
- Improving credit quality trends.
- Lower net charge-offs.
- Declines in classified asset balances.
- Strong origination activity.
Challenges Ahead
- Total loan balances declined $150.6 million due to PPP forgiveness of $225.4 million.
- Loan payoffs remained high, particularly in specialty finance and ICRE units.
- Noninterest expenses increased due to incentive compensation tied to the Company's strong financial performance and modest increases in marketing costs and professional services.
- Noninterest income decreased (14.1)%
- Loan balances declined $150.6 million from the second quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income