First Financial Bancorp. (FFBC) 8-K First Financial Bancorp Announces Second Quarter 2023 Financial Results

Exhibit 99.1

First Financial Bancorp Announces Second Quarter 2023 Financial Results

•Earnings per diluted share of $0.69; $0.72 on an adjusted(1) basis, 29% increase YoY

•Return on average assets of 1.55%; 1.62% on an adjusted(1) basis

•Net interest margin on FTE basis(1) of 4.48%; 7 bp decrease from linked quarter

•Loan growth of $117 million; 4.5% on an annualized basis

•Strong adjusted(1) fee income of $53.5 million driven by foreign exchange and wealth management

•ACL to total loans of 1.41%; Classified assets declined 13% from linked quarter

•All capital ratios increased from the linked quarter; Regulatory ratios well in excess of targets

Cincinnati, Ohio - July 20, 2023. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and six months ended June 30, 2023.

For the three months ended June 30, 2023, the Company reported net income of $65.7 million, or $0.69 per diluted common share. These results compare to net income of $70.4 million, or $0.74 per diluted common share, for the first quarter of 2023. For the six months ended June 30, 2023, First Financial had earnings per diluted share of $1.43 compared to $0.98 for the same period in 2022.

Return on average assets for the second quarter of 2023 was 1.55% while return on average tangible common equity was 25.27%(1). These compare to return on average assets of 1.69% and return on average tangible common equity of 29.02%(1) in the first quarter of 2023.

Second quarter 2023 highlights include:

•Net interest margin of 4.43%, or 4.48% on a fully tax-equivalent basis(1)

◦7 bp decrease to 4.48% from 4.55% in the first quarter due to increasing deposit costs

◦Higher asset yields significantly offset 40 bp increase in cost of deposits

◦Average deposit balances decreased $98.3 million with growth in brokered and retail CDs offsetting declines in noninterest bearing checking and savings accounts

•Noninterest income of $53.3 million, or $53.5 million as adjusted(1)

◦Foreign exchange income of $15.0 million reflected continued strong activity

◦Record wealth management fees of $6.7 million; 6.0% increase from first quarter

◦Leasing business income of $10.3 million; 24.9% decline from first quarter due to change in mix

◦Adjusted(1) $0.2 million for losses on investment securities and gain related to the LIBOR cessation

•Noninterest expenses of $120.6 million, or $116.9 million as adjusted(1)

◦$3.9 million increase from first quarter driven primarily by higher employee costs and online banking conversion

◦Second quarter adjustments(1) include $1.0 million tax credit investment writedown, $1.7 million of costs related to our online banking conversion and $1.0 million of other costs not expected to recur such as acquisition, severance and branch consolidation costs

◦Efficiency ratio of 56.8%; 54.9% as adjusted(1)

________________________________________________________________________________________

(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.

(2) The consolidated balance sheets at December 31, 2022, September 30, 2022, and June 30, 2022, include assets acquired and liabilities assumed in the Summit Financial transaction. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. These fair value measurements were considered final as of December 31, 2022.

•Moderate loan growth during the quarter

◦Loan balances increased $116.8 million compared to the first quarter

◦Growth of 4.5% on an annualized basis

◦Residential mortgage and equipment leases drove quarterly growth

•Total Allowance for Credit Losses of $166.9 million; Total quarterly provision expense of $10.7 million

◦Loans and leases - ACL of $148.6 million; increased 5 bps to 1.41% of total loans

◦Unfunded Commitments - ACL of $18.2 million

◦Provision expense driven by slower prepayment speeds, net charge-offs and loan growth

◦Classified assets declined 12.6% to $138.9 million; Net charge-offs 22 bps of total loans

•Capital ratios remain solid

◦Total capital ratio increased 28 bps to 13.94%

◦Tier 1 common equity increased 30 bps to 11.30%

◦Tangible common equity increased 9 bps to 6.56%(1); 8.76%(1) excluding impact from AOCI

◦Tangible book value per share of $11.02(1)

Archie Brown, President and CEO, commented on the quarter, “I continue to be pleased with our performance this year. Earnings in the second quarter were once again very strong as an expected increase in deposit costs was mostly offset by higher asset yields. Adjusted(1) earnings per share were $0.72, which was a 29% increase compared to the same quarter in 2022, while the adjusted(1) returns on assets and tangible common equity were 1.62% and 26.46%, respectively. Net interest margin exceeded expectations during the period as our asset sensitive balance sheet has enabled the company to successfully navigate the higher interest rate environment. We were encouraged by the stabilization of deposit balances in the last half of the quarter. Personal, business and public fund deposits were stable to increasing from May to June while the mix continued to shift to interest bearing products."

Mr. Brown continued, “Our fee income largely exceeded our expectations this quarter, with strong performance from mortgage banking, client swaps and wealth management. Summit Funding Group had another nice quarter in originations although the mix has shifted to a higher level of finance leases and loans. This shift has bolstered our net interest income but resulted in less fee income during the period.”

Mr. Brown commented on loan growth and quality, "Loan growth was in line with expectations for the period. While loan activity slowed early in the quarter and we experienced higher commercial line pay downs, loan pipelines strengthened in recent weeks. We expect moderate loan growth in the second half of the year. We were pleased that asset quality remained strong during the quarter. Net charge-offs were 22 bps on an annualized basis after being zero last quarter and a net recovery in the fourth quarter of 2022 while classified assets declined 13% from the linked quarter."

Mr. Brown concluded, "We are extremely pleased with our results this quarter. The position of our balance sheet, strong net interest margin, consistent loan growth, robust fee income and stable asset quality is expected to sustain our performance in the back half of the year. Additionally, our earnings power, strong and increasing capital levels and high reserve levels provide additional support in the event of a downturn in the economy."

Full detail of the Company’s second quarter 2023 performance is provided in the accompanying financial statements and slide presentation.

Teleconference / Webcast Information

First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, July 21, 2023 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 (U.S. toll free), (647) 362-9199 (U.S. local), access code 5048068. The recording will be available until August 5, 2023. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

Press Release and Additional Information on Website

This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company’s results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.

Forward-Looking Statements

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements.  Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements.  Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

•economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business;

•future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses

•the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;

•Management’s ability to effectively execute its business plans;

•mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;

•the possibility that any of the anticipated benefits of the Company’s acquisitions will not be realized or will not be realized within the expected time period;

•the effect of changes in accounting policies and practices;

•changes in consumer spending, borrowing and saving and changes in unemployment;

•changes in customers’ performance and creditworthiness;

•the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;  

•current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;

•the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;

•our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

•financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

•the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;

•the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;

•a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;

•the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and

•our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2022, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov. 

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing.  Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

About First Financial Bancorp.

First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of June 30, 2023, the Company had $17.1 billion in assets, $10.6 billion in loans, $12.8 billion in deposits and $2.1 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.3 billion in assets under management as of June 30, 2023. The Company operated 130 full service banking centers as of June 30, 2023, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.

Contact Information

Investors/AnalystsMedia

Jamie Anderson                        Tim Condron

Chief Financial Officer                    Marketing Communications Manager

(513) 887-5400                        (513) 979-5796

InvestorRelations@bankatfirst.commedia@bankatfirst.com

Selected Financial Information

June 30, 2023

(unaudited)

Contents	Page
Consolidated Financial Highlights	2
Consolidated Quarterly Statements of Income	3
Consolidated Quarterly Statements of Income	4-5
Consolidated Statements of Condition	6
Average Consolidated Statements of Condition	7
Net Interest Margin Rate / Volume Analysis	8-9
Credit Quality	10
Capital Adequacy	11

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,															Six months ended,
	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
RESULTS OF OPERATIONS
Net income	$	65,667		$	70,403		$	69,086		$	55,705		$	51,520		$	136,070		$	92,821
Net earnings per share - basic	$	0.70		$	0.75		$	0.74		$	0.60		$	0.55		$	1.45		$	0.99
Net earnings per share - diluted	$	0.69		$	0.74		$	0.73		$	0.59		$	0.55		$	1.43		$	0.98
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.46		$	0.46
KEY FINANCIAL RATIOS
Return on average assets	1.55		%	1.69		%	1.63		%	1.35		%	1.28		%	1.62		%	1.16		%
Return on average shareholders' equity	12.32		%	13.71		%	13.64		%	10.58		%	9.84		%	13.00		%	8.66		%
Return on average tangible shareholders' equity (1)	25.27		%	29.02		%	29.93		%	22.29		%	20.68		%	27.08		%	17.65		%
Net interest margin	4.43		%	4.51		%	4.43		%	3.93		%	3.41		%	4.47		%	3.26		%
Net interest margin (fully tax equivalent) (1)(2)	4.48		%	4.55		%	4.47		%	3.98		%	3.45		%	4.51		%	3.31		%
Ending shareholders' equity as a percent of ending assets	12.54		%	12.53		%	12.01		%	12.00		%	12.74		%	12.54		%	12.74		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)	6.56		%	6.47		%	5.95		%	5.79		%	6.40		%	6.56		%	6.40		%
Risk-weighted assets (1)	8.00		%	7.87		%	7.32		%	7.21		%	8.09		%	8.00		%	8.09		%
Average shareholders' equity as a percent of average assets	12.60		%	12.29		%	11.98		%	12.75		%	12.97		%	12.45		%	13.36		%
Average tangible shareholders' equity as a percent of
average tangible assets (1)	6.57		%	6.21		%	5.84		%	6.49		%	6.62		%	6.39		%	7.03		%
Book value per share	$	22.52		$	22.29		$	21.51		$	21.03		$	21.90		$	22.52		$	21.90
Tangible book value per share (1)	$	11.02		$	10.76		$	9.97		$	9.48		$	10.27		$	11.02		$	10.27
Common equity tier 1 ratio (3)	11.30		%	11.00		%	10.83		%	10.82		%	10.91		%	11.30		%	10.91		%
Tier 1 ratio (3)	11.64		%	11.34		%	11.17		%	11.17		%	11.28		%	11.64		%	11.28		%
Total capital ratio (3)	13.94		%	13.66		%	13.64		%	13.73		%	13.94		%	13.94		%	13.94		%
Leverage ratio (3)	9.33		%	9.03		%	8.89		%	8.88		%	8.76		%	9.33		%	8.76		%
AVERAGE BALANCE SHEET ITEMS
Loans (4)	$	10,513,505		$	10,373,302		$	10,059,119		$	9,597,197		$	9,367,820		$	10,443,791		$	9,317,576
Investment securities	3,560,453			3,635,317			3,705,304			4,003,472			4,118,287			3,597,678			4,212,649
Interest-bearing deposits with other banks	329,584			318,026			372,054			317,146			294,136			323,837			284,006
Total earning assets	$	14,403,542		$	14,326,645		$	14,136,477		$	13,917,815		$	13,780,243		$	14,365,306		$	13,814,231
Total assets	$	16,968,055		$	16,942,999		$	16,767,598		$	16,385,989		$	16,185,978		$	16,955,596		$	16,185,451
Noninterest-bearing deposits	$	3,663,419		$	3,954,915		$	4,225,192		$	4,176,242		$	4,224,842		$	3,808,362		$	4,192,687
Interest-bearing deposits	9,050,464			8,857,226			8,407,114			8,194,781			8,312,876			8,954,379			8,467,479
Total deposits	$	12,713,883		$	12,812,141		$	12,632,306		$	12,371,023		$	12,537,718		$	12,762,741		$	12,660,166
Borrowings	$	1,523,699		$	1,434,338		$	1,489,088		$	1,406,718		$	1,079,596		$	1,479,265		$	901,634
Shareholders' equity	$	2,137,765		$	2,082,210		$	2,009,564		$	2,089,179		$	2,099,670		$	2,110,141		$	2,162,235
CREDIT QUALITY RATIOS
Allowance to ending loans	1.41		%	1.36		%	1.29		%	1.27		%	1.25		%	1.41		%	1.25		%
Allowance to nonaccrual loans	276.70		%	409.46		%	464.58		%	341.61		%	302.87		%	276.70		%	302.87		%
Allowance to nonperforming loans	276.70		%	409.46		%	335.94		%	262.09		%	235.08		%	276.70		%	235.08		%
Nonperforming loans to total loans	0.51		%	0.33		%	0.38		%	0.48		%	0.53		%	0.51		%	0.53		%
Nonaccrual loans to total loans	0.51		%	0.33		%	0.28		%	0.37		%	0.41		%	0.51		%	0.41		%
Nonperforming assets to ending loans, plus OREO	0.51		%	0.33		%	0.39		%	0.48		%	0.53		%	0.51		%	0.53		%
Nonperforming assets to total assets	0.32		%	0.21		%	0.23		%	0.28		%	0.31		%	0.32		%	0.31		%
Classified assets to total assets	0.81		%	0.94		%	0.75		%	0.69		%	0.74		%	0.81		%	0.74		%
Net charge-offs to average loans (annualized)	0.22		%	0.00		%	(0.01)		%	0.07		%	0.08		%	0.11		%	0.09		%

(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.

(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

(3) June 30, 2023 regulatory capital ratios are preliminary.

(4) Includes loans held for sale.

2

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	Three months ended,								Six months ended,
	June 30,								June 30,
	2023			2022			% Change		2023			2022			% Change
Interest income
Loans and leases, including fees	$	184,387		$	97,091		89.9	%	$	354,093		$	184,273		92.2	%
Investment securities
Taxable	32,062			23,639			35.6	%	63,929			45,735			39.8	%
Tax-exempt	3,513			4,916			(28.5)	%	6,977			9,347			(25.4)	%
Total investment securities interest	35,575			28,555			24.6	%	70,906			55,082			28.7	%
Other earning assets	3,933			505			678.8	%	7,477			625			1,096.3	%
Total interest income	223,895			126,151			77.5	%	432,476			239,980			80.2	%
Interest expense
Deposits	44,292			2,963			1,394.8	%	75,748			5,586			1,256.0	%
Short-term borrowings	15,536			1,566			892.1	%	28,486			1,883			1,412.8	%
Long-term borrowings	4,835			4,612			4.8	%	9,692			9,156			5.9	%
Total interest expense	64,663			9,141			607.4	%	113,926			16,625			585.3	%
Net interest income	159,232			117,010			36.1	%	318,550			223,355			42.6	%
Provision for credit losses-loans and leases	12,719			(4,267)			(398.1)	%	21,363			(9,856)			(316.8)	%
Provision for credit losses-unfunded commitments	(1,994)			3,481			(157.3)	%	(159)			3,255			(104.9)	%
Net interest income after provision for credit losses	148,507			117,796			26.1	%	297,346			229,956			29.3	%
Noninterest income
Service charges on deposit accounts	6,972			7,648			(8.8)	%	13,486			15,377			(12.3)	%
Wealth management fees	6,713			6,311			6.4	%	13,047			12,371			5.5	%
Bankcard income	3,692			3,823			(3.4)	%	7,284			7,160			1.7	%
Client derivative fees	1,827			1,369			33.5	%	2,832			2,172			30.4	%
Foreign exchange income	15,039			13,470			11.6	%	31,937			23,621			35.2	%
Leasing business income	10,265			7,247			41.6	%	23,929			13,323			79.6	%
Net gains from sales of loans	3,839			5,241			(26.8)	%	6,174			9,113			(32.3)	%
Net gain (loss) on sale of investment securities	(384)			0			N/M		(903)			3			N/M
Net gain (loss) on equity securities	(82)			(1,054)			(92.2)	%	558			(1,253)			(144.5)	%
Other	5,377			5,723			(6.0)	%	10,457			9,185			13.8	%
Total noninterest income	53,258			49,778			7.0	%	108,801			91,072			19.5	%
Noninterest expenses
Salaries and employee benefits	74,199			64,992			14.2	%	146,453			128,939			13.6	%
Net occupancy	5,606			5,359			4.6	%	11,291			11,105			1.7	%
Furniture and equipment	3,362			3,201			5.0	%	6,679			6,768			(1.3)	%
Data processing	9,871			8,334			18.4	%	18,891			16,598			13.8	%
Marketing	2,802			2,323			20.6	%	4,962			4,023			23.3	%
Communication	644			670			(3.9)	%	1,278			1,336			(4.3)	%
Professional services	2,308			2,214			4.2	%	4,254			4,373			(2.7)	%
State intangible tax	964			1,090			(11.6)	%	1,949			2,221			(12.2)	%
FDIC assessments	2,806			1,677			67.3	%	5,632			3,136			79.6	%
Intangible amortization	2,601			2,915			(10.8)	%	5,201			5,829			(10.8)	%
Leasing business expense	6,730			4,687			43.6	%	14,668			8,556			71.4	%
Other	8,722			5,572			56.5	%	16,050			12,955			23.9	%
Total noninterest expenses	120,615			103,034			17.1	%	237,308			205,839			15.3	%
Income before income taxes	81,150			64,540			25.7	%	168,839			115,189			46.6	%
Income tax expense (benefit)	15,483			13,020			18.9	%	32,769			22,368			46.5	%
Net income	$	65,667		$	51,520		27.5	%	$	136,070		$	92,821		46.6	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.70		$	0.55				$	1.45		$	0.99
Net earnings per share - diluted	$	0.69		$	0.55				$	1.43		$	0.98
Dividends declared per share	$	0.23		$	0.23				$	0.46		$	0.46
Return on average assets	1.55		%	1.28		%			1.62		%	1.16		%
Return on average shareholders' equity	12.32		%	9.84		%			13.00		%	8.66		%
Interest income	$	223,895		$	126,151		77.5	%	$	432,476		$	239,980		80.2	%
Tax equivalent adjustment	1,601			1,625			(1.5)	%	3,025			3,092			(2.2)	%
Interest income - tax equivalent	225,496			127,776			76.5	%	435,501			243,072			79.2	%
Interest expense	64,663			9,141			607.4	%	113,926			16,625			585.3	%
Net interest income - tax equivalent	$	160,833		$	118,635		35.6	%	$	321,575		$	226,447		42.0	%
Net interest margin	4.43		%	3.41		%			4.47		%	3.26		%
Net interest margin (fully tax equivalent) (1)	4.48		%	3.45		%			4.51		%	3.31		%
Full-time equivalent employees	2,193			2,096
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

3

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2023
	Second			First			Year to			% Change
	Quarter			Quarter			Date			Linked Qtr.
Interest income
Loans and leases, including fees	$	184,387		$	169,706		$	354,093		8.7	%
Investment securities
Taxable	32,062			31,867			63,929			0.6	%
Tax-exempt	3,513			3,464			6,977			1.4	%
Total investment securities interest	35,575			35,331			70,906			0.7	%
Other earning assets	3,933			3,544			7,477			11.0	%
Total interest income	223,895			208,581			432,476			7.3	%
Interest expense
Deposits	44,292			31,456			75,748			40.8	%
Short-term borrowings	15,536			12,950			28,486			20.0	%
Long-term borrowings	4,835			4,857			9,692			(0.5)	%
Total interest expense	64,663			49,263			113,926			31.3	%
Net interest income	159,232			159,318			318,550			(0.1)	%
Provision for credit losses-loans and leases	12,719			8,644			21,363			47.1	%
Provision for credit losses-unfunded commitments	(1,994)			1,835			(159)			(208.7)	%
Net interest income after provision for credit losses	148,507			148,839			297,346			(0.2)	%
Noninterest income
Service charges on deposit accounts	6,972			6,514			13,486			7.0	%
Wealth management fees	6,713			6,334			13,047			6.0	%
Bankcard income	3,692			3,592			7,284			2.8	%
Client derivative fees	1,827			1,005			2,832			81.8	%
Foreign exchange income	15,039			16,898			31,937			(11.0)	%
Leasing business income	10,265			13,664			23,929			(24.9)	%
Net gains from sales of loans	3,839			2,335			6,174			64.4	%
Net gain (loss) on sale of investment securities	(384)			(519)			(903)			(26.0)	%
Net gain (loss) on equity securities	(82)			640			558			112.8	%
Other	5,377			5,080			10,457			5.8	%
Total noninterest income	53,258			55,543			108,801			(4.1)	%
Noninterest expenses
Salaries and employee benefits	74,199			72,254			146,453			2.7	%
Net occupancy	5,606			5,685			11,291			(1.4)	%
Furniture and equipment	3,362			3,317			6,679			1.4	%
Data processing	9,871			9,020			18,891			9.4	%
Marketing	2,802			2,160			4,962			29.7	%
Communication	644			634			1,278			1.6	%
Professional services	2,308			1,946			4,254			18.6	%
State intangible tax	964			985			1,949			(2.1)	%
FDIC assessments	2,806			2,826			5,632			(0.7)	%
Intangible amortization	2,601			2,600			5,201			0.0	%
Leasing business expense	6,730			7,938			14,668			(15.2)	%
Other	8,722			7,328			16,050			19.0	%
Total noninterest expenses	120,615			116,693			237,308			3.4	%
Income before income taxes	81,150			87,689			168,839			(7.5)	%
Income tax expense (benefit)	15,483			17,286			32,769			(10.4)	%
Net income	$	65,667		$	70,403		$	136,070		(6.7)	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.70		$	0.75		$	1.45
Net earnings per share - diluted	$	0.69		$	0.74		$	1.43
Dividends declared per share	$	0.23		$	0.23		$	0.46
Return on average assets	1.55		%	1.69		%	1.62		%
Return on average shareholders' equity	12.32		%	13.71		%	13.00		%
Interest income	$	223,895		$	208,581		$	432,476		7.3	%
Tax equivalent adjustment	1,601			1,424			3,025			12.4	%
Interest income - tax equivalent	225,496			210,005			435,501			7.4	%
Interest expense	64,663			49,263			113,926			31.3	%
Net interest income - tax equivalent	$	160,833		$	160,742		$	321,575		0.1	%
Net interest margin	4.43		%	4.51		%	4.47		%
Net interest margin (fully tax equivalent) (1)	4.48		%	4.55		%	4.51		%
Full-time equivalent employees	2,193			2,066
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2022
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans and leases, including fees	$	152,299		$	122,170		$	97,091		$	87,182		$	458,742
Investment securities
Taxable	30,248			26,331			23,639			22,096			102,314
Tax-exempt	4,105			5,014			4,916			4,431			18,466
Total investment securities interest	34,353			31,345			28,555			26,527			120,780
Other earning assets	3,262			1,597			505			120			5,484
Total interest income	189,914			155,112			126,151			113,829			585,006
Interest expense
Deposits	16,168			6,386			2,963			2,623			28,140
Short-term borrowings	11,091			6,158			1,566			317			19,132
Long-term borrowings	4,759			4,676			4,612			4,544			18,591
Total interest expense	32,018			17,220			9,141			7,484			65,863
Net interest income	157,896			137,892			117,010			106,345			519,143
Provision for credit losses-loans and leases	8,689			7,898			(4,267)			(5,589)			6,731
Provision for credit losses-unfunded commitments	1,341			386			3,481			(226)			4,982
Net interest income after provision for credit losses	147,866			129,608			117,796			112,160			507,430
Noninterest income
Service charges on deposit accounts	6,406			6,279			7,648			7,729			28,062
Wealth management fees	5,648			5,487			6,311			6,060			23,506
Bankcard income	3,736			3,484			3,823			3,337			14,380
Client derivative fees	1,822			1,447			1,369			803			5,441
Foreign exchange income	19,592			11,752			13,470			10,151			54,965
Leasing business income	11,124			7,127			7,247			6,076			31,574
Net gains from sales of loans	2,206			3,729			5,241			3,872			15,048
Net gain (loss) on sale of investment securities	(393)			(179)			0			3			(569)
Net gain (loss) on equity securities	1,315			(701)			(1,054)			(199)			(639)
Other	4,579			4,109			5,723			3,462			17,873
Total noninterest income	56,035			42,534			49,778			41,294			189,641
Noninterest expenses
Salaries and employee benefits	73,621			66,808			64,992			63,947			269,368
Net occupancy	5,434			5,669			5,359			5,746			22,208
Furniture and equipment	3,234			3,222			3,201			3,567			13,224
Data processing	8,567			8,497			8,334			8,264			33,662
Marketing	2,198			2,523			2,323			1,700			8,744
Communication	690			657			670			666			2,683
Professional services	3,015			2,346			2,214			2,159			9,734
State intangible tax	974			1,090			1,090			1,131			4,285
FDIC assessments	2,173			1,885			1,677			1,459			7,194
Intangible amortization	2,573			2,783			2,915			2,914			11,185
Leasing business expense	6,061			5,746			4,687			3,869			20,363
Other	15,902			23,842			5,572			7,383			52,699
Total noninterest expenses	124,442			125,068			103,034			102,805			455,349
Income before income taxes	79,459			47,074			64,540			50,649			241,722
Income tax expense (benefit)	10,373			(8,631)			13,020			9,348			24,110
Net income	$	69,086		$	55,705		$	51,520		$	41,301		$	217,612
ADDITIONAL DATA
Net earnings per share - basic	$	0.74		$	0.60		$	0.55		$	0.44		$	2.33
Net earnings per share - diluted	$	0.73		$	0.59		$	0.55		$	0.44		$	2.30
Dividends declared per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.92
Return on average assets	1.63		%	1.35		%	1.28		%	1.03		%	1.33		%
Return on average shareholders' equity	13.64		%	10.58		%	9.84		%	7.53		%	10.34		%
Interest income	$	189,914		$	155,112		$	126,151		$	113,829		$	585,006
Tax equivalent adjustment	1,553			1,712			1,625			1,467			6,357
Interest income - tax equivalent	191,467			156,824			127,776			115,296			591,363
Interest expense	32,018			17,220			9,141			7,484			65,863
Net interest income - tax equivalent	$	159,449		$	139,604		$	118,635		$	107,812		$	525,500
Net interest margin	4.43		%	3.93		%	3.41		%	3.11		%	3.73		%
Net interest margin (fully tax equivalent) (1)	4.47		%	3.98		%	3.45		%	3.16		%	3.77		%
Full-time equivalent employees	2,070			2,072			2,096			2,050
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

5

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		% Change		% Change
	2023		2023		2022		2022		2022		Linked Qtr.		Comp Qtr.
ASSETS
Cash and due from banks	$	217,385	$	199,835	$	207,501	$	195,553	$	217,481	8.8	%	0.0	%
Interest-bearing deposits with other banks	485,241		305,465		388,182		338,978		270,042		58.9	%	79.7	%
Investment securities available-for-sale	3,249,404		3,384,949		3,409,648		3,531,353		3,843,580		(4.0)	%	(15.5)	%
Investment securities held-to-maturity	82,372		83,070		84,021		85,823		88,057		(0.8)	%	(6.5)	%
Other investments	141,892		143,606		143,160		138,767		132,151		(1.2)	%	7.4	%
Loans held for sale	15,267		9,280		7,918		10,684		22,044		64.5	%	(30.7)	%
Loans and leases
Commercial and industrial	3,433,162		3,449,289		3,410,272		3,139,219		2,927,175		(0.5)	%	17.3	%
Lease financing	360,801		273,898		236,124		176,072		146,639		31.7	%	146.0	%
Construction real estate	536,464		525,906		512,050		489,446		449,734		2.0	%	19.3	%
Commercial real estate	4,048,460		4,056,627		4,052,759		3,976,345		4,007,037		(0.2)	%	1.0	%
Residential real estate	1,221,484		1,145,069		1,092,265		1,024,596		965,387		6.7	%	26.5	%
Home equity	728,711		724,672		733,791		737,318		725,700		0.6	%	0.4	%
Installment	165,216		204,372		209,895		202,267		146,680		(19.2)	%	12.6	%
Credit card	55,911		53,552		51,815		52,173		52,065		4.4	%	7.4	%
Total loans	10,550,209		10,433,385		10,298,971		9,797,436		9,420,417		1.1	%	12.0	%
Less:
Allowance for credit losses	(148,646)		(141,591)		(132,977)		(124,096)		(117,885)		5.0	%	26.1	%
Net loans	10,401,563		10,291,794		10,165,994		9,673,340		9,302,532		1.1	%	11.8	%
Premises and equipment	192,077		188,959		189,080		189,067		191,099		1.7	%	0.5	%
Operating leases	132,272		153,986		91,738		84,851		82,659		(14.1)	%	60.0	%
Goodwill	1,005,828		1,005,738		1,001,507		998,422		999,959		0.0	%	0.6	%
Other intangibles	88,662		91,169		93,919		96,528		99,019		(2.7)	%	(10.5)	%
Accrued interest and other assets	1,078,186		1,076,033		1,220,648		1,280,427		995,091		0.2	%	8.4	%
Total Assets	$	17,090,149	$	16,933,884	$	17,003,316	$	16,623,793	$	16,243,714	0.9	%	5.2	%
LIABILITIES
Deposits
Interest-bearing demand	$	2,919,472	$	2,761,811	$	3,037,153	$	2,980,465	$	3,096,365	5.7	%	(5.7)	%
Savings	3,785,445		3,746,403		3,828,139		3,980,020		4,029,717		1.0	%	(6.1)	%
Time	2,484,780		2,336,368		1,700,705		1,242,412		1,026,918		6.4	%	142.0	%
Total interest-bearing deposits	9,189,697		8,844,582		8,565,997		8,202,897		8,153,000		3.9	%	12.7	%
Noninterest-bearing	3,605,181		3,830,102		4,135,180		4,137,038		4,124,111		(5.9)	%	(12.6)	%
Total deposits	12,794,878		12,674,684		12,701,177		12,339,935		12,277,111		0.9	%	4.2	%
Federal funds purchased and securities sold
under agreements to repurchase	0		0		0		3,535		0		0.0	%	0.0	%
FHLB short-term borrowings	1,050,300		1,089,400		1,130,000		972,600		896,000		(3.6)	%	17.2	%
Other	165,983		128,160		157,156		184,912		152,226		29.5	%	9.0	%
Total short-term borrowings	1,216,283		1,217,560		1,287,156		1,161,047		1,048,226		(0.1)	%	16.0	%
Long-term debt	339,963		342,647		346,672		355,116		358,578		(0.8)	%	(5.2)	%
Total borrowed funds	1,556,246		1,560,207		1,633,828		1,516,163		1,406,804		(0.3)	%	10.6	%
Accrued interest and other liabilities	595,606		577,497		626,938		773,563		491,129		3.1	%	21.3	%
Total Liabilities	14,946,730		14,812,388		14,961,943		14,629,661		14,175,044		0.9	%	5.4	%
SHAREHOLDERS' EQUITY
Common stock	1,632,659		1,629,428		1,634,605		1,631,696		1,637,237		0.2	%	(0.3)	%
Retained earnings	1,060,715		1,016,893		968,237		920,943		887,006		4.3	%	19.6	%
Accumulated other comprehensive income (loss)	(353,010)		(328,059)		(358,663)		(354,570)		(243,328)		7.6	%	45.1	%
Treasury stock, at cost	(196,945)		(196,766)		(202,806)		(203,937)		(212,245)		0.1	%	(7.2)	%
Total Shareholders' Equity	2,143,419		2,121,496		2,041,373		1,994,132		2,068,670		1.0	%	3.6	%
Total Liabilities and Shareholders' Equity	$	17,090,149	$	16,933,884	$	17,003,316	$	16,623,793	$	16,243,714	0.9	%	5.2	%

6

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages										Year-to-Date Averages
	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,		June 30,
	2023		2023		2022		2022		2022		2023		2022
ASSETS
Cash and due from banks	$	221,527	$	218,724	$	218,216	$	228,068	$	248,463	$	220,133	$	244,887
Interest-bearing deposits with other banks	329,584		318,026		372,054		317,146		294,136		323,837		284,006
Investment securities	3,560,453		3,635,317		3,705,304		4,003,472		4,118,287		3,597,678		4,212,649
Loans held for sale	11,856		5,531		8,639		12,283		15,446		8,711		15,517
Loans and leases
Commercial and industrial	3,469,683		3,456,681		3,249,252		3,040,547		2,884,373		3,463,218		2,810,901
Lease financing	323,819		252,219		203,790		158,667		134,334		288,217		125,070
Construction real estate	518,190		536,294		501,787		469,489		460,609		527,192		467,406
Commercial real estate	4,050,946		4,017,021		4,028,944		3,969,935		4,025,493		4,034,077		4,081,969
Residential real estate	1,181,053		1,115,889		1,066,859		998,476		936,165		1,148,651		919,956
Home equity	726,333		728,185		735,039		728,791		716,219		727,254		710,001
Installment	172,147		205,934		208,484		164,063		140,145		188,947		132,902
Credit card	59,478		55,548		56,325		54,946		55,036		57,524		53,854
Total loans	10,501,649		10,367,771		10,050,480		9,584,914		9,352,374		10,435,080		9,302,059
Less:
Allowance for credit losses	(145,578)		(136,419)		(127,541)		(119,000)		(123,950)		(141,024)		(126,760)
Net loans	10,356,071		10,231,352		9,922,939		9,465,914		9,228,424		10,294,056		9,175,299
Premises and equipment	190,583		190,346		189,342		190,738		191,895		190,465		192,361
Operating leases	138,725		107,092		88,365		83,970		73,862		122,996		67,614
Goodwill	1,005,791		1,005,713		998,575		999,690		999,958		1,005,752		1,000,097
Other intangibles	89,878		92,587		95,256		97,781		100,354		91,225		101,686
Accrued interest and other assets	1,063,587		1,138,311		1,168,908		986,927		915,153		1,100,743		891,335
Total Assets	$	16,968,055	$	16,942,999	$	16,767,598	$	16,385,989	$	16,185,978	$	16,955,596	$	16,185,451
LIABILITIES
Deposits
Interest-bearing demand	$	2,906,855	$	2,906,712	$	3,103,091	$	3,105,547	$	3,180,846	$	2,906,784	$	3,213,700
Savings	3,749,902		3,818,807		3,943,342		4,036,565		4,076,380		3,784,164		4,110,806
Time	2,393,707		2,131,707		1,360,681		1,052,669		1,055,650		2,263,431		1,142,973
Total interest-bearing deposits	9,050,464		8,857,226		8,407,114		8,194,781		8,312,876		8,954,379		8,467,479
Noninterest-bearing	3,663,419		3,954,915		4,225,192		4,176,242		4,224,842		3,808,362		4,192,687
Total deposits	12,713,883		12,812,141		12,632,306		12,371,023		12,537,718		12,762,741		12,660,166
Federal funds purchased and securities sold
under agreements to repurchase	21,881		26,380		16,167		32,637		24,229		24,118		34,735
FHLB short-term borrowings	1,028,207		925,144		944,320		892,786		586,846		976,960		423,232
Other	132,088		139,195		184,439		131,237		109,353		135,622		71,535
Total short-term borrowings	1,182,176		1,090,719		1,144,926		1,056,660		720,428		1,136,700		529,502
Long-term debt	341,523		343,619		344,162		350,058		359,168		342,565		372,132
Total borrowed funds	1,523,699		1,434,338		1,489,088		1,406,718		1,079,596		1,479,265		901,634
Accrued interest and other liabilities	592,708		614,310		636,640		519,069		468,994		603,449		461,416
Total Liabilities	14,830,290		14,860,789		14,758,034		14,296,810		14,086,308		14,845,455		14,023,216
SHAREHOLDERS' EQUITY
Common stock	1,631,230		1,633,396		1,632,941		1,631,078		1,635,990		1,632,307		1,637,149
Retained earnings	1,034,092		989,777		941,987		899,524		866,910		1,012,057		854,351
Accumulated other comprehensive loss	(330,263)		(339,450)		(361,284)		(236,566)		(190,949)		(334,831)		(115,120)
Treasury stock, at cost	(197,294)		(201,513)		(204,080)		(204,857)		(212,281)		(199,392)		(214,145)
Total Shareholders' Equity	2,137,765		2,082,210		2,009,564		2,089,179		2,099,670		2,110,141		2,162,235
Total Liabilities and Shareholders' Equity	$	16,968,055	$	16,942,999	$	16,767,598	$	16,385,989	$	16,185,978	$	16,955,596	$	16,185,451

7

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
	Quarterly Averages																				Year-to-Date Averages
	June 30, 2023						March 31, 2023						June 30, 2022						June 30, 2023	June 30, 2022
	Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield				Balance		Yield		Balance		Yield
Earning assets
Investments:
Investment securities	$	3,560,453	$	35,575	4.01	%	$	3,635,317	$	35,331	3.94	%	$	4,118,287	$	28,555	2.78	%			$	3,597,678	3.97	%	$	4,212,649	2.64	%
Interest-bearing deposits with other banks	329,584		3,933		4.79	%	318,026		3,544		4.52	%	294,136		505		0.69	%			323,837		4.66	%	284,006		0.44	%
Gross loans (1)	10,513,505		184,387		7.03	%	10,373,302		169,706		6.63	%	9,367,820		97,091		4.16	%			10,443,791		6.84	%	9,317,576		3.99	%
Total earning assets	14,403,542		223,895		6.23	%	14,326,645		208,581		5.90	%	13,780,243		126,151		3.67	%			14,365,306		6.07	%	13,814,231		3.50	%
Nonearning assets
Allowance for credit losses	(145,578)						(136,419)						(123,950)								(141,024)				(126,760)
Cash and due from banks	221,527						218,724						248,463								220,133				244,887
Accrued interest and other assets	2,488,564						2,534,049						2,281,222								2,511,181				2,253,093
Total assets	$	16,968,055					$	16,942,999					$	16,185,978							$	16,955,596			$	16,185,451
Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	2,906,855	$	8,351	1.15	%	$	2,906,712	$	6,604	0.92	%	$	3,180,846	$	842	0.11	%			$	2,906,784	1.04	%	$	3,213,700	0.08	%
Savings	3,749,902		14,055		1.50	%	3,818,807		7,628		0.81	%	4,076,380		1,003		0.10	%			3,784,164		1.16	%	4,110,806		0.09	%
Time	2,393,707		21,886		3.67	%	2,131,707		17,224		3.28	%	1,055,650		1,118		0.42	%			2,263,431		3.48	%	1,142,973		0.42	%
Total interest-bearing deposits	9,050,464		44,292		1.96	%	8,857,226		31,456		1.44	%	8,312,876		2,963		0.14	%			8,954,379		1.71	%	8,467,479		0.13	%
Borrowed funds
Short-term borrowings	1,182,176		15,536		5.27	%	1,090,719		12,950		4.82	%	720,428		1,566		0.87	%			1,136,700		5.05	%	529,502		0.72	%
Long-term debt	341,523		4,835		5.68	%	343,619		4,857		5.73	%	359,168		4,612		5.15	%			342,565		5.71	%	372,132		4.96	%
Total borrowed funds	1,523,699		20,371		5.36	%	1,434,338		17,807		5.03	%	1,079,596		6,178		2.30	%			1,479,265		5.20	%	901,634		2.47	%
Total interest-bearing liabilities	10,574,163		64,663		2.45	%	10,291,564		49,263		1.94	%	9,392,472		9,141		0.39	%			10,433,644		2.20	%	9,369,113		0.36	%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits	3,663,419						3,954,915						4,224,842								3,808,362				4,192,687
Other liabilities	592,708						614,310						468,994								603,449				461,416
Shareholders' equity	2,137,765						2,082,210						2,099,670								2,110,141				2,162,235
Total liabilities & shareholders' equity	$	16,968,055					$	16,942,999					$	16,185,978							$	16,955,596			$	16,185,451
Net interest income	$	159,232					$	159,318					$	117,010							$	318,550			$	223,355
Net interest spread					3.78	%					3.96	%					3.28	%					3.87	%			3.14	%
Net interest margin					4.43	%					4.51	%					3.41	%					4.47	%			3.26	%
Tax equivalent adjustment					0.05	%					0.04	%					0.04	%					0.04	%			0.05	%
Net interest margin (fully tax equivalent)					4.48	%					4.55	%					3.45	%					4.51	%			3.31	%
(1) Loans held for sale and nonaccrual loans are included in gross loans.

8

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
	Linked Qtr. Income Variance						Comparable Qtr. Income Variance							Year-to-Date Income Variance
	Rate		Volume		Total			Rate		Volume		Total			Rate		Volume		Total
Earning assets
Investment securities	$	593	$	(349)	$	244		$	12,594	$	(5,574)	$	7,020		$	27,944	$	(12,120)	$	15,824
Interest-bearing deposits with other banks	209		180		389			3,005		423		3,428			5,932		920		6,852
Gross loans (2)	10,223		4,458		14,681			67,203		20,093		87,296			131,636		38,184		169,820
Total earning assets	11,025		4,289		15,314			82,802		14,942		97,744			165,512		26,984		192,496
Interest-bearing liabilities
Total interest-bearing deposits	$	11,414	$	1,422	$	12,836		$	37,719	$	3,610	$	41,329		$	66,043	$	4,119	$	70,162
Borrowed funds
Short-term borrowings	1,227		1,359		2,586			7,902		6,068		13,970			11,386		15,217		26,603
Long-term debt	(46)		24		(22)			473		(250)		223			1,373		(837)		536
Total borrowed funds	1,181		1,383		2,564			8,375		5,818		14,193			12,759		14,380		27,139
Total interest-bearing liabilities	12,595		2,805		15,400			46,094		9,428		55,522			78,802		18,499		97,301
Net interest income (1)	$	(1,570)	$	1,484	$	(86)		$	36,708	$	5,514	$	42,222		$	86,710	$	8,485	$	95,195
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are included in gross loans.

9

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
																Six months ended,
	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
ALLOWANCE FOR CREDIT LOSS ACTIVITY
Balance at beginning of period	$	141,591		$	132,977		$	124,096		$	117,885		$	124,130		$	132,977		$	131,992
Provision for credit losses	12,719			8,644			8,689			7,898			(4,267)			21,363			(9,856)
Gross charge-offs
Commercial and industrial	2,372			730			334			1,947			773			3,102			3,618
Lease financing	90			13			0			13			8			103			139
Construction real estate	0			0			0			0			0			0			0
Commercial real estate	2,648			66			245			3			3,419			2,714			3,419
Residential real estate	20			0			79			119			4			20			26
Home equity	21			91			72			45			22			112			43
Installment	1,515			1,524			717			294			361			3,039			538
Credit card	274			217			212			237			212			491			458
Total gross charge-offs	6,940			2,641			1,659			2,658			4,799			9,581			8,241
Recoveries
Commercial and industrial	631			109			293			90			177			740			556
Lease financing	1			1			0			13			3			2			36
Construction real estate	0			0			0			0			0			0			0
Commercial real estate	153			2,238			1,327			561			2,194			2,391			2,416
Residential real estate	113			66			15			35			34			179			124
Home equity	232			80			88			185			360			312			625
Installment	90			54			68			29			47			144			68
Credit card	56			63			60			58			6			119			165
Total recoveries	1,276			2,611			1,851			971			2,821			3,887			3,990
Total net charge-offs	5,664			30			(192)			1,687			1,978			5,694			4,251
Ending allowance for credit losses	$	148,646		$	141,591		$	132,977		$	124,096		$	117,885		$	148,646		$	117,885
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.20		%	0.07		%	0.01		%	0.24		%	0.08		%	0.14		%	0.22		%
Lease financing	0.11		%	0.02		%	0.00		%	0.00		%	0.01		%	0.07		%	0.17		%
Construction real estate	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Commercial real estate	0.25		%	(0.22)		%	(0.11)		%	(0.06)		%	0.12		%	0.02		%	0.05		%
Residential real estate	(0.03)		%	(0.02)		%	0.02		%	0.03		%	(0.01)		%	(0.03)		%	(0.02)		%
Home equity	(0.12)		%	0.01		%	(0.01)		%	(0.08)		%	(0.19)		%	(0.06)		%	(0.17)		%
Installment	3.32		%	2.89		%	1.24		%	0.64		%	0.90		%	3.09		%	0.71		%
Credit card	1.47		%	1.12		%	1.07		%	1.29		%	1.50		%	1.30		%	1.10		%
Total net charge-offs	0.22		%	0.00		%	(0.01)		%	0.07		%	0.08		%	0.11		%	0.09		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$	21,508		$	13,971		$	8,242		$	8,719		$	11,675		$	21,508		$	11,675
Lease financing	4,833			175			178			199			217			4,833			217
Construction real estate	0			0			0			0			0			0			0
Commercial real estate	11,876			5,362			5,786			13,435			14,650			11,876			14,650
Residential real estate	11,697			11,129			10,691			10,250			8,879			11,697			8,879
Home equity	3,239			3,399			3,123			3,445			3,331			3,239			3,331
Installment	568			544			603			279			170			568			170
Nonaccrual loans	53,721			34,580			28,623			36,327			38,922			53,721			38,922
Accruing troubled debt restructurings (TDRs) (2)	N/A			N/A			10,960			11,022			11,225			N/A			11,225
Total nonperforming loans (2)	53,721			34,580			39,583			47,349			50,147			53,721			50,147
Other real estate owned (OREO)	281			191			191			22			22			281			22
Total nonperforming assets (2)	54,002			34,771			39,774			47,371			50,169			54,002			50,169
Accruing loans past due 90 days or more	873			159			857			139			142			873			142
Total underperforming assets (2)	$	54,875		$	34,930		$	40,631		$	47,510		$	50,311		$	54,875		$	50,311
Total classified assets (2)	$	138,909		$	158,984		$	128,137		$	114,956		$	119,769		$	138,909		$	119,769
CREDIT QUALITY RATIOS
Allowance for credit losses to
Nonaccrual loans	276.70		%	409.46		%	464.58		%	341.61		%	302.87		%	276.70		%	302.87		%
Nonperforming loans	276.70		%	409.46		%	335.94		%	262.09		%	235.08		%	276.70		%	235.08		%
Total ending loans	1.41		%	1.36		%	1.29		%	1.27		%	1.25		%	1.41		%	1.25		%
Nonperforming loans to total loans	0.51		%	0.33		%	0.38		%	0.48		%	0.53		%	0.51		%	0.53		%
Nonaccrual loans to total loans	0.51		%	0.33		%	0.28		%	0.37		%	0.41		%	0.51		%	0.41		%
Nonperforming assets to
Ending loans, plus OREO	0.51		%	0.33		%	0.39		%	0.48		%	0.53		%	0.51		%	0.53		%
Total assets	0.32		%	0.21		%	0.23		%	0.28		%	0.31		%	0.32		%	0.31		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.51		%	0.33		%	0.28		%	0.37		%	0.41		%	0.51		%	0.41		%
Total assets	0.32		%	0.21		%	0.17		%	0.22		%	0.24		%	0.32		%	0.24		%
Classified assets to total assets	0.81		%	0.94		%	0.75		%	0.69		%	0.74		%	0.81		%	0.74		%
(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million, $12.8 million, and $9.5 million, as of December 31, 2022, September 30, 2022, and June 30, 2022, respectively.
(2) Upon adoption of ASU 2022-02 as of January 1, 2023, the TDR model was eliminated. Prospectively, disclosures will include modifications of loans to borrowers experiencing financial difficulty (FDM). FDMs are excluded from nonperforming, underperforming and classified assets.

10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																Six months ended,
	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
PER COMMON SHARE
Market Price
High	$	22.27		$	26.24		$	26.68		$	23.75		$	23.03		$	26.24		$	26.73
Low	$	18.20		$	21.30		$	21.56		$	19.02		$	19.09		$	18.20		$	19.09
Close	$	20.44		$	21.77		$	24.23		$	21.08		$	19.40		$	20.44		$	19.40
Average shares outstanding - basic	93,924,068			93,732,532			93,590,674			93,582,250			93,555,131			93,828,829			93,470,005
Average shares outstanding - diluted	95,169,348			94,960,158			94,831,788			94,793,766			94,449,817			95,065,334			94,357,392
Ending shares outstanding	95,185,483			95,190,406			94,891,099			94,833,964			94,448,792			95,185,483			94,448,792
Total shareholders' equity	$	2,143,419		$	2,121,496		$	2,041,373		$	1,994,132		$	2,068,670		$	2,143,419		$	2,068,670
REGULATORY CAPITAL	Preliminary															Preliminary
Common equity tier 1 capital	$	1,481,913		$	1,432,332		$	1,399,420		$	1,348,413		$	1,307,259		$	1,481,913		$	1,307,259
Common equity tier 1 capital ratio	11.30		%	11.00		%	10.83		%	10.82		%	10.91		%	11.30		%	10.91		%
Tier 1 capital	$	1,526,362		$	1,476,734		$	1,443,698		$	1,392,565		$	1,351,287		$	1,526,362		$	1,351,287
Tier 1 ratio	11.64		%	11.34		%	11.17		%	11.17		%	11.28		%	11.64		%	11.28		%
Total capital	$	1,828,737		$	1,778,917		$	1,762,971		$	1,711,741		$	1,670,367		$	1,828,737		$	1,670,367
Total capital ratio	13.94		%	13.66		%	13.64		%	13.73		%	13.94		%	13.94		%	13.94		%
Total capital in excess of minimum requirement	$	451,297		$	411,234		$	406,032		$	402,662		$	412,167		$	451,297		$	412,167
Total risk-weighted assets	$	13,118,477		$	13,025,552		$	12,923,233		$	12,467,422		$	11,982,860		$	13,118,477		$	11,982,860
Leverage ratio	9.33		%	9.03		%	8.89		%	8.88		%	8.76		%	9.33		%	8.76		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	12.54		%	12.53		%	12.01		%	12.00		%	12.74		%	12.54		%	12.74		%
Ending tangible shareholders' equity to ending tangible assets (1)	6.56		%	6.47		%	5.95		%	5.79		%	6.40		%	6.56		%	6.40		%
Average shareholders' equity to average assets	12.60		%	12.29		%	11.98		%	12.75		%	12.97		%	12.45		%	13.36		%
Average tangible shareholders' equity to average tangible assets (1)	6.57		%	6.21		%	5.84		%	6.49		%	6.62		%	6.39		%	7.03		%
REPURCHASE PROGRAM (2)
Shares repurchased	0			0			0			0			0			0			0
Average share repurchase price	N/A			N/A			N/A			N/A			N/A			N/A			N/A
Total cost of shares repurchased	N/A			N/A			N/A			N/A			N/A			N/A			N/A
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
(2) Represents share repurchases as part of publicly announced plans.
N/A = Not applicable

11