FFBC - Earnings call transcript Q3 2020 | First Financial Bancorp.

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Operator

Good morning, everyone, and welcome to the First Financial Bancorp Third Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions] Please also note, today's event is being recorded. And at this time, I'd like to turn the conference call over to Scott Crawley, Corporate Controller. Sir, please go ahead.

Scott Crawley

Thank you, Jamie. thank discuss joining quarter First XXXX results. and conference on and everyone, financial to call Financial morning, you us for today's year-to-date Good Bancorp's third Chief will and Officer; Harrod, Chief Brown, Participating Chief Bill be Officer. today's Jamie Anderson, call President on and Executive Credit Officer; Financial Archie yesterday release the slide Investor section. the presentation at are the press and website under Both available www.bankatfirst.com we issued accompanying on our Relations

reference to during the slides the in presentation make contained today's accompanying call. will We

to I'll the Brown. to quarter as XX, call and as a refer Additionally, of we disclosure third provide our company's today statement Archie for will not as please now over in is the the circumstances to we XXXX, information forward-looking accurate XXXX after this facts turn contained reflect filings factors. of or earnings well forward-looking the The call. be September full risk release, discussion statements will updating any SEC

Archie Brown

morning, very and the you for environment. our our Thank economic you, afternoon, third call. everyone, announced especially when thank performance, us with Scott, I'm for quarter. on financial the we results challenging Yesterday today's pleased good considering and joining

XX.XX% continued quarter $XXX in $X.XX increased Despite per diversity of profitability. with annualized share, was X.XX% produced of strength on results $XXX from which our the XX% XX% efficiency an on we're net business headwinds being despite tangible million in industry. deposit deposits, business return adjusted solid on extremely personal the basis. assets, much ratio. growth of lines. average and interest prior average, as non-interest-bearing after banking continued impacting slightly increases or growth increased with million Highlights the strong XX% Our that trends quarter XXXth consecutive third on and items rate were Core Transaction non-recurring income annualized difficult interest earnings included demonstrated we conditions, common of business and our quarter to equity average remove return

The foreign from record highlighted was fee our and Bannockburn team. third exchange again income quarter by mortgage banking

Our and relatively commission we trends expense. of our loans, for remainder this a excluding and exceptional income X% temporarily remained low as credit total for the higher credit Expenses while year quarter, operating stable, the increased mortgage performance of Credit reported as quarter, allowance the provision results supporting during environment. of our $XX.X of of interest customers were and incentives financing rate needs team fee losses million this in third historically strong XXXX. sensational elevated led had home anticipation to in PPP deterioration into expense our to

and delinquency trends low are Our encouraging. deferral payment

business, We're are our the improved the at levels. under manage prioritizing while our guiding company. assisting continue pandemic a Midwest ability of the and payment sincerely commentary. update continue discuss of global to the some communities soundness Jamie and strong turn the these manner, and to our up the the results, to portfolio managing some preserving returning of call deferrals results. of financial Jamie? and and increasing given vaccines challenging associating Jamie's principles made control. last after retail by banking these cases I'll months our provide have much continuity progress of are and I'll corporate of timing individual to over associates on needs We reopened customers encouraged our We've and the reduced disciplined times. wrap significantly And associates. crisis forward-looking third in an over of of produced prioritizing pandemic safety, the associates details bring be of all resiliency the to ensuring and quarter this albeit our now Most discussion, client our COVID-XX loan workspaces, communities uncertainties during to in the with safety backdrop I'm our centers around our appreciative in operating capacity six the the of performance

Jamie Anderson

and a and year-to-date morning, X summary everyone. Archie, and third Slides quarter our provide Thank X of good XXXX you, performance.

saw meaningful to and of the to first third provision expenses. of The in the our net pandemic quarter. increase a to interest third earnings margin elevated offset the and expense Similar quarter the record as year, half first continue the headwinds fee year, in from decline continued the produce income variable half declining slight

levels believe While we the to credit million the credit us stable, of expense out quarter, current as play to have reserve position absorb recorded $XX.X expected continues over metrics coming our we remained provision deterioration the and months. relatively during pandemic

in improved and ratios and remain internal capital both regulatory excess during the the quarter of targets. Our

continue to our that maintain well fundamentals these is believe our levels our testing sheet indicate We for positioned balance foreseeable results and position stress core to us future. that the

prior the decrease As by PPP the interest expected, interest a and declined our to basis yields asset quarter, points rates dilution X from net in loans. compared lower driven to margin

$X.X were priced results. compared cost However, decline. growing banking managing the CD exceeded by XX.X% drivers core impacts brokered we and able low-cost negative balances one of Mortgage the or to deposits, main again, of second fee the our quarter. Once partially million expectations, and highlight these was deliberately while funding the quarter income increasing offset to quarterly of letting higher

variable record income quarter Bannockburn in another a fee addition, with by efficiency and sub-XX% in ratio. increase a quarter offset deposit had service charges rebounded. expenses elevated resulted an In This

quarter XX equity common quarter to X.XX% well ratios a a from total points points Third the in capital basis quarter ratio third excluding tangible both PPP. X.XX%, impact indicate standpoint linked X capital on increased the capital positioned and remain we Tier Total as basis increased XX our or of results regulatory basis. that improved and

believe for excludes $XXX,XXX was book which of to or important per GAAP costs. $XX.XX performance. of understanding we our net we share to X expenses end quarter. that related quarter, other are non-recurring COVID-XX earnings. of share as branch Adjusted $X.X per million the value adjusted Highlighting Additionally, income quarterly items $X.XX and pleased the earnings tangible such Slide by consolidation reconciles grew were our $XX.X at that the $X.XX our to items million

on adjusted assets on shown tangible common these Slide of average As average a to X.XX% return equity on of a XX.X%. earnings X, return and equate

XX.X% adjusted despite remained strong ratio Our and efficiency reflects during elevated compensation expenses. and diligence incentive continued our quarter the managing

point interest environment. net X.XX% to primarily basis Turning X to were interest on lower was quarter. X, related low by equivalent asset decline The negatively yields, for and rate Slides X fully a tax was basis the margin which the impacted

points This was partially the margin to by due rates. margin during positively mix and yields interest the lower basis net the lower quarter negatively XX Asset impacted points the period. cost, offset by during which XX funding by basis impacted

in points quarter. from of resulted PPP In basis incremental dilution addition, the margin X second

declining period, in the core CDs. priced mix million response as by lowered loans period, for of deposits. base which basis aggressively yield deposits shown environment In increases deposit during all Slide we Slide total, In low the the balances mix As negatively shift yields, loan depicts the balances types. In our well impacted loan dropped as offset from relatively Slide the of our declined by deposits compared decline points, XX a interest basis to continued modest were period, loans, $XXX average brokered loan X, yield average current in rate XX as as asset to were on mix changes the CRE in our XX shows of the cost XX balance reflects and declined as a of CDs higher yields flat points well brokered adjustments funding rate to driven to linked investment in these while a basis impact which quarter other this declines decline full on deliberate from third priced deposit XX points. during the the as progression the linked higher quarter. quarter, quarter.

trajectory pleased deposit deposit are non-interest-bearing growth. balances as $XXX offset million partially decline However, this we in was by deposit core in of the included which increases balances, with

and necessary XX funding coming income our on continue over quarter. to our pricing monitor any Slide needs. will and We for make based highlights deposit market adjustments the conditions the months non-interest

and to exchange banking in Third quarter wealth highest also as pleased was fee Slide XX. by was significant since on with line charge foreign pre-pandemic were were to the mortgage and compared XXXX Overall the outlined expectations service began We levels. linked income increase return driven fees income and expenses income. management our to Non-interest in a is increased expense quarter for quarter.

expectations. However, non-interest expenses line were our in incentive absent with compensation,

and $XXX,XXX as incurred we related of other quarter, the COVID-XX consolidation approximately recur such not expected $X.X to costs. expenses costs of branch During million

Also generation. $XXX,XXX directly we in incurred exchange the million improved to to incentive mortgage of First was production foreign income and a incremental addition, $X.X related expenses million operating third $X.X our and results Foundation. expense of compensation Financial to related commission In quarter contribution included

expense in XX, ACL, forecast economic total both $XXX Moody's $XX.X Slide model the for our baseline million ACL to in losses. utilized Turning the of end and Xrd includes model the funded of million quarter's worth provision was of a total reserves, majority impact and quarter. released credit first the COVID-XX. the unfunded resulted The quarter which slightly noting at Similar of September, the from provision which second related the half from the third that improved it's economic expected to to year,

increase in the by model impacted an the positively was in However, third quarter rates. prepayment

million was points once of stable, asset levels XX as charge-offs again Net percentage basis for and and Slide slight were the charge-offs had year-to-date. on which quality quarter, the than As levels. only net nonperforming loans as remains shown a increases historical were of we points XX $X.X for lower XX, period fairly and classified in credit basis

XXXX. do year While current of don't stress some the and we remainder the at deterioration reflect much our expect metrics through credit into the time,

levels As such, balance absorb deterioration. to we current believe our position sheet reserve further the adequately

quarter XX Tier capital Finally, all continue minimums. targets. to ratios internal in and regulatory during capital exceed Total strong of are as each increased and on ratios excess ratios, shown Slide and and the remain XX, X

value tangible Our near-term grew $XX.XX. tangible dividend. points not do the the equity to any during common our and anticipate XX book increased to common We ratio basis period changes by

year. capital continue various of Archie? of economic loan materializes. the specific evaluate related over as the back turn for actions further commentary and remainder a to of portfolio, for the in However, deferral it areas the outlook focus now to to program COVID our we our pandemic I'll the impact will Archie

Archie Brown

Jamie. Thank you,

we've cover loan focus Given COVID-XX, our the related which portfolio. to areas specific continued loan circumstances updated through and Slides payment XX deferrals economic within of XX,

and Jumping of Protection highlights in returned point, XX end Slide navigate Paycheck two XXXX. As as mentioned to quarter. into deferrals quarter the X.X% clients a of Program, a those our of million exit completed $XX.X loans to in have one our to $XXX Slides million us have normal moved provide the the unearned requests for give fees earlier, could portal or of have Customers round billion this been the business $XXX to we to which $X.X have opened continue process. loans round difficult yet At $XX million we and a we've continue limited included with in approximately the the million to throughout of and a participation forgiveness to forgiveness schedule, fourth or expect XX% and deferral third that while one that and environment. XX payment the number exited total have loans the steady loans our period. round bridge deferral XX,

liquidity of on borrower Of franchise schedule, round borrowers diligence to areas to the deferrals round and Slides one primarily after within the while expired XX XX second an a cash universally payment receiving sit-down our operations, round and those positive portfolio, are a specific XX% to granted one basis provide we're our portfolio, deferrals two of focus update were ensure While resolution. and a returned were payments. condition, due with portfolio. granted, to financial case-by-case working be XX% have deferrals loan with making the stress a continues interest-only these round actively of deferral restaurant The of normal flow.

to XX% likely prior additional require occupancy hotel stabilize range. will on discussed to slowly as calls, improved has into portfolio rates XX% time the As our

to which XX% expected take deferrals our granted are these convention their to to space dependence We have longest with XX% destinations, deferrals large second the of different large fly due hotel upon second leisure payments. initial have deferral been hotels, social limited a of making interest-only exposure or event to to gatherings. recover

Only payment deferral. portfolio, we're ICRE round one X% returned of ICRE that retail deferrals have $XX a second our XX% have of payment Regarding granted schedule. deferrals to or pleased received million normal a initial

interest forward. we transitory shows factors Given the growth expect Loan excluding to are term. associated that expected deposit performance payoffs be we're guidance. expected the in low-single continuing PPP limited PPP impact The key impact of uncertain program near our positively elevated to and the over the impacted the forgiveness operating recognition. digits, with is and moving fee forward-looking the Slide to is be timing net to remain environment by and XX the of expected balances the accelerated margin

slight of be we Excluding purchase PPP can stabilize going these some environment given term. absence pressure and impacts, interest near we low to volatile, the expect ongoing the but in somewhat expect accounting declines, which rate margin variables, forward,

credit, the to full impact yet of Regarding pandemic out. is the play

losses we they going in than during moderate future total December declines the balance our income, brings the fourth it XXXX, which XXXX, of expect credit forward. at to to originations expect mortgage total to address we times allowance a continued expense We've $XXX quarter. However, added should, X our losses in believe, provision us Specific ACL greater our materialize. fee we strong XX, for million if help

However, in premiums. we anticipate volume some and seasonal lower decline

light XX a almost Last quarter disciplined We to and our X% and to two channel quarter, network. in lower four revenues we follow were critical. and opportunities distribution hiring to the for last to locations, planned observed we evaluate challenging closed over and With expect We pause continue of on a total expense or respect approximately gradually accelerated with of bringing service the due management by our branch to the most branch fourth compensation. expenditures more this expect to expenses, interchange to I'm efficient. except approach circumstances. improving foreign during we our changes of pandemic, decline Overall, to become quarter. income In XX% the years pleased continue year discretionary behavior incentive be performance investments significant the considering very a with charge closures consistent third to exchange customer

liquidity effectively our company. of remain as to we strong capital Our ensure the have and soundness and managed safety

uncertain remains the continue broader face to economic However, challenges. clients environment and our

even Going manage will to have forward, crisis positioned continue financial when priorities we performance stronger for company we believe and pandemic the health subsides. the

This well-being play the we remain we and year, for focus steadfast out on As prepared this shareholders. concludes clients, our communities call. our of associates, in memorable the the comments

open call We will questions. now up the for

Operator

your Our first Instructions] ahead Scott Piper question Siefers comes [Operator today go question. from with from Sandler. Please

Scott Siefers

how internally? of out you the What looking kind would level you're sort expectations things next, days? you where XXX round the But as what have color work excellent of we that. on of so for think appreciate you the are two I hotel you just to the I first one dynamics. the at level question guess, of sort go restaurants, a looking completely. portfolio, the for longer our round aggregate just set those and of I I - would time is guess guys I deferrals, look that deferrals Archie, XX, of over could guess, guys things, as will some own an given on take sit-down the period of sort recommend at things

Archie Brown

let too me start comments is and and can Sure. add mind. my if Bill you to here Scott, he don't then

So the the we bulk. in of are kind

the disclose Now round of that second what like. deferrals, looks we

of hotel probably going dwindle then first be But XX-day but think evaluate it - these basically down, that that needs the continue to and will we'll those book. primarily a as of deferrals opposed back I dwindle window, additional it's Scott, centered were I to full over view the we end to down, portion would part and good that of in will support, payment. who quarter XX-day interest-only think again, and were

the it's maybe end getting that by drop too sit-downs. into half without get probably any say number the and X% that? and round? We comments hotels of precise, range other on by that primarily would I then second does So, Bill, some

Bill Harrod

we're Yes. I kind mean what is now. anticipating of right that

kind in expect third Archie range through as just of of we round alluded as have deferrals, potential due our end. We on did what for the the that the round to we us that assessing lot back a a prognosis far including puts two additional diligence,

Scott Crawley

window get types stabilization probably we'll windows we the appropriate look time, what's for at with that and we Scott. we'll longer decide just right for conditions but the and do we borrowers what of evaluate is of have Well, where to vaccine, the think those course, is of look, prescription It those types if the it's borrowers.

Scott Siefers

and Perfect. referring then, would sound what think actions. doesn't All supported I your that's had thinking preferred sub but right, like so say, or concern, it dividend, the where you a prepared you to? are you. Are And would think real is, evaluate guys remarks, pretty be debt just thank that? you that capital said in to things continue I you like like stream said you you additional When by earnings much

Archie Brown

but at to to think we Well, it's we of buybacks our from that. now, to levers vaccine get can there you about M&A than there think is early do come I that do adding pull. how after other to just we the it's all results, improve to I we - more just distribution, right I do, it's terms and are to comfortable everything we think growing looking things too have the need that's you to utilize a think earnings may some going after don't in know to things in stabilized view have start we but is capital when like things And think

the we're road. for creating of think we sales flexibility - just we're down So

Scott Siefers

to All be that. Okay, on right. sort just All wanted right. good. I clear of

simply. actions - guess days, talking thinking lines to than the return along capital it we're when of more we're it's more So put these I raise

Archie Brown

Yes.

Operator

go your comes KBW. Chris question with McGratty question. ahead Please from next our And from

Chris McGratty

balance in get to here thoughts to excess a take start you. trying your I'm interested with in quite the investment and optimize how trying seen terms head around sheet few my banks the liquidity Jamie, near managing reducing about how the think - just balance the term? I'm let growing portfolio. of some thinking borrowings, sheet. me I'm We've you're

Jamie Anderson

Yes.

and So and transactional in actually, the surge increase deposits deposits seen in the accounts. across board that we've really

So one Home rotated took early of the of as Loan pandemic that timeframe some advances Bank did that in things we out CDs. we brokered the and out Federal in March-April on

a quarter, has as saw CDs. actually remained and increase, the liquidity deposit brokered seen had we the over balance transactional balances this drop deposit so million we've So in balances sheet, you on $XXX

I the as balance wholesale a deposit So wait seeing a from we how really and we months last how I deposit X or balances are in little a And sheet and the side call, of kind of just balances. mode, were what standpoint. would then reducing, were customers bit liability see X would monitoring over say, the of reacting

We maybe we in little are take beginning. more bit those than thought they seeing that a were the

from we And to those we some at so with going say, see to roughly after million looking dollars putting work put things that some then really And I that borrowings, think we're reduced investment work that and are we investment so to forward. kind in of did yes, about, to really, portfolio we'll - would I that. and work. some of increasing But $XXX going have of more we liquidity the putting the you're we've by liquidity talking here portfolio

Chris McGratty

call in billion just additional quarter. securities the - color. sorry. I'm the, you $XXX to of it, And The relative the to that's $X.X million Thank for

So $X.X you where targeting? is were kind of

Jamie Anderson

Right.

Chris McGratty

just I adjusted the sure starting QX. to understand Is the expenses? guide, expense the I guide, expenses the point, or make want On the GAAP your for

Jamie Anderson

expenses. would the point starting The adjusted be

Chris McGratty

Okay.

Jamie Anderson

incentive so a in million - the And we we Yes. about had increase had the expense from $X compensation/commissions. side, increase quarter-to-quarter then

after improvement then the in in that bonus to our million was foreign other in company-wide that quarter and the commissions exchange. related based earnings quarter, year. and end directly to the needed we through really banking expected three third that mortgage piece And the the quarters, just So of is of plan additional our anticipation about amount third on for payout the $X.X of to both the of related

down. So we to but come back that we booked that expect amount,

the fourth levels. the in quarter come to expect mentioned normal back we outlook, that to more we down As in

Chris McGratty

two is the other The without or there's ones, with quick And on guidance PPP Great. Jamie. margin, that the impact?

Jamie Anderson

when purchase be and that general still would say the going bit - volatile With about affects we're then we're without the a over about a here. loan core side will loan really relatively our the of from going of we're so I would bounce at of deposit so a then core next, we couple especially and impact little PPP the But you stable PPP, - and our a you decent that quarters. the getting look margin that, next talking accounting hint the talking it is can really I - margin, little have from bit to down. fees I when relatively stable. we margin relief we the But margin around just of still but obviously PPP. And in forward just be amount overall, model tell again, when loan quarter-to-quarter quarter-to-quarter. here the fees which pressure over some you the related are rates well, look you have without volatility our be to as can mean, fees projecting would Well, margin of maybe reinvestment but margin,

Chris McGratty

on being in to outlook on Washington then and lastly, taxes? maybe what's any the then And taxes, perspective the on thoughts proposed sensitivity

Jamie Anderson

right Well, XX%. effective election in roughly the out Obviously the the absent change so mean, rate going of administration. to I here, around of something the tax Washington forward, out if that is any mean, our rate, changes, I or comes

Chris McGratty

the nothing right Right. the There increase. way got on you But philosophically down. the way is the that different on proportional at up sensitivity

Jamie Anderson

No.

Chris McGratty

right. all Okay, Thanks.

Operator

from from Terry comes ahead Stephens. question with Please question. McEvoy go And your our next

Terry McEvoy

thoughts just has using third customers little or since through I retail the into assume and that you do some How the just what out wondering bit occurred the branch could then XXXX, you'd branch be more platform I some you are you your with network? on can digital the actions the in maybe And March. opportunities as run a impacted Archie, look that was quarter? more year Just specific traffic? if

Archie Brown

Yes.

So quarter, at as years. four end locations the us so over or of and takes well, think, we I last mentioned couple I that about XX close, the the second of

continue we XX% still are fully were now we're lobbies still high running it. branches XX% to we even evaluate to Terry, open, So to there our now - seeing are teens in XX% if on where range pre-pandemic. things those ITM down at transaction usage, are we remote levels were alternative And you areas deposits up, up significantly. look from are just like means,

So really, we do some think some clients do have found sticking. banking their other that's ways and to of

we So through office transaction to repositioning well, evaluating the counts we will like time, Are that for see it. there that think to we're as And of get study. fairly quarter communicating say bleed be two, you'll making that we'll in but be I that some consolidation opportunities probably in of going but future. that. more further in the study look are going may materialize there extensive be in changes over opportunities, will a be a We'll certainly that outcome as don't it what's some gradually

Jamie Anderson

Terry, And is Jamie. this

asset incurred might just or well or could past been the like the something we branches have action was appraisal the we that an and are I think your of of the quarter, costs. million question, Those write-downs, mainly expenses one branch $X.X maybe part we that from they updated consolidation around took the that. during that not have fixed as branches in have on

million part $X.X that So as that's well. of

Terry McEvoy

it follow-up, be if is this the business, over third And quarter FX four quarters as will out your that correct, the outlook year just then will million. be of $XX my

think newer Or is a bank. year? step that up million business $XX year something this is there seen one what since I drive the and relative not past? a to Just to Does model that in it's upside any new relatively other next we've you - on as that the about going at

Archie Brown

think, lower in Yes, than the it year, million was - we just another course, said I Terry, of into expectation closer year as without million economy ramping It's said, really other a about quarter, shutdown much occurring. yes, up so of was second and later $X million that that, to and got up the was ramping you would next number. have quarter it's have kind the think that would and been the we or into $X into that if coming to probably it, be And this of a transaction year, but, quarter. the running would down we

into you're So that $XX million range. getting

think we at level but expect. $XX doing it of And run is they the improve, of we So kind for rate. will incrementally we're good their the as would kind keep number work, a million

Operator

go Arfstrom And your from RBC Jon ahead our from question next comes with Capital. Please question.

Jon Arfstrom

How for one Archie, qualitative you. doing? small of people touched businesses view kind how the doing? the what's local on, And you've your Outside of are stressed that your are areas of economies?

Archie Brown

that times very the resiliency pleased are where they a could - think be of the very of in business of ago business, done peaking still strong, and get, were doing will to the we're and months perform, this six I kinds - going related I think and in states than are are You to restaurants, into they we're X of I the COVID or we some this, know, everybody we're type were Jon, but very some been have really probably the so. of they those they in bad and think country, I about in good where think kind well know how we've highlighted, doing We've we they're counts felt really more a that, well. areas, well, well. other but a about than of hotels, these April, that right say I other think, of a areas lot pressure but May, certainly, in doing economies some very we are community how it terms case to X sit-down consumers now. with operating kind delivery business converted take-out well, how like bad in. They are optimistic and Local you

well pretty are right moving creating some businesses. now, things but that's So for still, concern, on I think,

Jon Arfstrom

about When of Is results? And are either kind I'm then in that process, a round for you us you improving it the due extra if due due finding? lodging talk maybe for generally return? Bill, you Just second diligence you go can? diligence, What what walk you or on through for things asking deferrals. you some that of

Bill Harrod

don't of have This short-term, destination hotels, start Archie we the do the does with individuals, businesses large about the see including Where's little where whole, Who families. pickup. also a really summer Bill. the lot going course up bit and to and is prognosis. a and earlier summer hotels take more, number the by absolutely. assessment talked hotels by need a also learned gatherings, of generator? the are And splitters on our that, of when from is long-term that travel our - crowd what as as lot sponsor that what free Yes, And things to start of travel we you is type a we've serve? We of we'll to that benefited a see hotels, as what business property. it it then of And our demand

over ton the get nice this have nice convention our then is really pick in in don't flags, little we the full holidays and out occupancy but where what of down It And of and pickup dependent here, we're up more. the And in and we're bit last go a travelers market a stuff. service we expect a couple seeing. as reception months, so business especially a around to more we rates fall saw kind also do our

see those the with Hilton type So we start flags, back. IHG, Choice, coming our of to Marriott, traffic

Archie Brown

going that and another would commitment. I the Jon, at and thing another is evaluating Archie, doing round, we're is his also really are team sponsors looking add, deferrals that Yes. Bill this when

sponsor and be. asking the used So time we're to it some and help along shared kind to bank, things up effort with to step back hotel sustain do the over a get where to the of

Jamie Anderson

do And lot in little is budgets, and to add just on that a mean their breakeven their place we that. bit, monitor package just of covenant I put a with flow, we cash work

Jon Arfstrom

a pull back a on of stands you and little kind out, bit. you the kind And Jamie, flagging you. maybe talk may pipelines But what of Mortgage that line? a one maybe really revenue bit pullback you expect about that for

Jamie Anderson

Yes.

we seasonality quarter, some of We was that see second fourth is in well. well. business coming of great as third great obviously, as that had that the quarter So not do the only quarter, good down

do So overall, would you, we I I fourth the tell overall down mean, quarter. coming see it in

no doubt it. So about

we second and the in third mean, then, were the in this were be you're thing mean, third quarter, XX% we to so, probably these backside the down in that And look volume were you quarter other at And the selling would fourth huge. roughly the that the both to especially on were I saw just quarter compared the everywhere when seeing overall that the premiums quarter third XX%. I the overall

those as but to kind down those expecting are down well. to and to we we norms over more a historical premiums It away, come back expect So revert main come down to do right bit come little of come to will down the time. back

So or and or another XX% probably XX% that's so.

do an see so still a elevated we that come or will revenue standpoint, be year from income compared although ago coming down to down. but it will So that

Operator

next go Our your Instructions] from David ahead Long question. with [Operator James. Please from Raymond question comes

David Long

wanted Just question back expense. Chris' get the to on to

base you're the are fourth talking Just $XX your that the in decline quarter? X% you using you're about saying wanted to expenses the confirm, million for when

Jamie Anderson

correct. that's Yes,

David Long

then... got Okay, And it.

Jamie Anderson

Yes, is out just million the couple $XX million write-downs. the million takes those of - $XX adjusted out of yes, those and branch

David Long

there performance improvement year? firm, from across from there, catch-up then million the I was assume some $X.X the in the And earlier in

Jamie Anderson

caused catch-up little mean, mean, looking it was you we at really year-to-date expected the the and where mean accordingly. might adjust then us bit I It's a, payout have a misnomer. look second improvement basis to little bit I really and quarter that were a of from accrual of at on the be take the just a a just, I take look a at to a and

David Long

extend about to And to treat loans accounting forward? hotels some restaurants having to How days. how maybe and beyond the do for deferrals you XXX going talked Have your of you you're talked them? sit-down regulators you then envision those going about

Bill Harrod

Yes, this Bill. is

on it products into and period some We three a include and be or would both from most And classified our will paid we're fees interest-only of and those. what the accounting having the standpoint, to or necessarily and our incentives accountants, regulators an we TDRs. review next calling re-stabilization the not reviewed back will end with round regulators based have with on year, extend our we be of as

Now individual would, but cases categorically, it's may dictate intended. that we not

flag but not as deferrals, still necessarily will those We TDRs.

David Long

credits deferring think if on appropriate? of the of you it's been downgrading through this loans, process you deferral, And have some whole

Bill Harrod

from of with deferral, analysis appropriate credit, and factors owners case-by-case what support well a as both determine the that we be. stage loan-by-loan sponsors, it's to And a the Yes, rating do performance absolutely. outside depending And each the reassessment surrounding should rating. as the a and really upon of the

Operator

question from Siefers ahead follow-up. with from our Please a And next Piper Scott is go follow-up Sandler. your

Scott Siefers

what ask banks growth bifurcation some growth. dynamics industry ground the share question of of the the thought seeing able evaporation - where curious, times. what always in in at market just punch broadly, FFBC factor digit? have a I sort of weight middle of that I've loan some kind what been play? you kind probably a definite wanted playing some you're real the smaller the you terms your main sort conversely guys? the class of the you Just to opportunities on about seen. of that There's guess, in large at low-single above between bigger the to Are as into a are names of and and have take customers of demand seen Or from

Archie Brown

of areas. about talk maybe Archie, couple This Scott. a Yes,

getting pay the in been very Through good consumer we've volume, consumer off refinance not But if high-high really also enough the market because has we're to there just the much volumes. paying having not are strong there. consumer side volume, origination just, side, year work this we growth the window been this has seeing seen on we're consumer mortgage balances. mortgage First the

feel there. We do like to will well and momentum continue that are seeing increasing

we're side, on where areas a little areas think we've down wanting commercial the that books. trying the reside, be On we're in having interested to, a enough bit some little we to grow purpose, on that a little bit the intentional got about the slowdown we're more a I slowing on is of guess, ICO

of on So really ICO it's the team, taking say In cases, of share in We've coming clients the that's, from our situations, it's in majority would to say the we're I'd you'll got pockets. commercial think was and are one It It's super pockets market accruing, bank. wave coming on I see typically probably reside. the opportunity in little the nice banking of but of strong here many slowing, reputation we new is seeing not, probably bit business. a marketplace. side, seasoned the regionals the we and

sophistication you level As bit I we of. creating size formula the that's, of think, with that think than we and can build said, greater winning a of maybe off a

Operator

in over gentlemen, and today's ladies we question-and-answer questions, turn any I'd call And team end like management to the closing conference for no session. additional remarks. will showing to back the

Archie Brown

Thank Jamie. you,

Have talking, I everybody, for thanks, quarter. again, Just to joining. quarter. forward a the day. of next look proud We're nice

Operator

we for conclude attending thank call. that, today's presentation. and conference Ladies do gentlemen, will with We today's you

You may lines. now disconnect your

First Financial Bancorp. (FFBC) 23 Oct 202020 Q3 Earnings call transcript