FFBC - Earnings call transcript Q4 2021 | First Financial Bancorp.

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Operator

Hello and welcome to the First Financial Bancorp Fourth Quarter 2021 Earnings Call. My name is Alex, and I’ll be coordinating the call today. [Operator Instructions] I’d now hand over to your host, Scott Crawley Corporate Controller Over to you Scott.

Scott Crawley

Thanks, Alex. Good morning, everyone, and thank you for joining us on today's conference call to discuss First Financial Bancorp's fourth quarter and full year 2021 financial results. will Anderson, Brown, Bill Chief Credit call Executive and Harrod, today's Officer. Jamie Officer; Financial on be President Archie Chief Chief Participating Officer; and presentation yesterday press under www.bankatfirst.com Relations the we the Investor on issued Both accompanying website release the slide are section. at available our and accompanying make We'll the to call. today's slides the during reference in contained presentation

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

Archie Brown

exceptional Thank reflect morning Good on financial call. Yesterday for and fourth interest rate outstanding we you an results operating finish despite today’s backdrop. thank quarter you, Scott. our an the announced challenging year afternoon, environment which and joining us everyone, to

has origination product Summit’s the results were highlighted quality income, and diversified of core together. fee of acquisition nationwide a demonstrated solid current significant improved produce adding completed group quarterly recapture funding synergies volumes. the will high offerings quarter and platform forward, successfully developed our excited position earnings, during were about strong the our lending leading and and growth, trends. to provision loan provide someone by opportunities credit some significant the and The We by announced finance to Our future gained in the consistent and sector equity ability and growth nimble moving

quarter strong growth combining asset to to across have the and also Bannockburn adjusted foreign strong Loan was and created in than per XX.X%. with remain to Fourth our mortgage as higher line with in as they share Summit’s our by are Fee construction offset income potential from expertise improved XX% earnings quarter forward expected exchange management approximately results the to companies. pleased commitments board than We exceptional look credit two leading efficiency activity provision year tailwinds and quality up. more Fourth of $X.X way. growth ratio return-on-assets of by as significant coming quarter the levels million Growth decreased record commercial the $X.XX, our record over origination revenue groups to classified by and third provide improve recapture was again some to and were an highlighted loan unfunded of the seasonal assets XX.X%. trends X.XX% draw income. continue of the drop are earnings unit

in the districts. which particularly completed both commercial approximately central to pandemic, also hotel be an concentration industry impacted in our to by loans, $XXX estate the We real and million exposure continues our reduces of that business sale metropolitan

impact of loan or Excluding was and approximately PPP, which year. was the the the acquisition, the $XXX million sale X.X% quarter of Summit the strongest growth core loan annualized,

continued our estate pleased commercial very finance organic with growth within to have are payoffs see concerning real we We portfolios. commercial loan and record this

in XX% all the been modestly and to PPP loans forgiven. customer maintain and to of segments, substantial all portfolio expect pleased across of liquidity fourth moderate strengthening continue continue two the in quarter, in customers almost builds, payoffs our have one growth As have levels. round grow Summit around forgiveness We're quarter balances we wind see down to those as positive three over the and further loan to XXXX.

historically in rate come the two was over round We low half pressure offset PPP as environment. payoffs XXXX. interest our to majority of the remaining Overall, from of exceptional, first performance participation full year the expect XXXX our helped

this – fee pressures. despite expenses year, and remained I given area was very While strategic strong managed on and pleased our earnings credit improved again dramatically inflationary provision strong see reflected well focus business recapture contributed to of trends, was that to our income

and of capital to I'll and share dividend after very over will our now strong balance And Jamie I strong, yield. and With our turn to wrap with the a repurchases Lastly, to that, ratios through discuss call quarter the fourth our commentary. we deliver forward-looking additional up remained some details discussion, sheet shareholders were Jamie's aggressive superior results. pleased then returns Jamie? to

Jamie Anderson

fourth you, quarter financial morning four, five year provide XXXX of summary and everyone. good Slide and results. and Thank Archie six a full our

very happy earnings, income. closing of provision core core and our and included fee assets, growth. funding loan which decline included Summit The loan classified elevated highlights a are of acquisition group with X% strong We recapture in quarter our growth, annualized performance significant the

We income due income our expenses and the in management fee various fees Net a concentrations strong as a targets. ratios than internal both In The higher economic our decline during we period. remained due in portfolio particularly resulted Non-interest surpassed in million were Bannockburn record charge-offs are to compensation, $XXX of provision to and classified strong, tied decision as had million classified front in the order outlook wealth were a capital incentive overall our $X.X XX% elevated and period. quarter, higher elevated to From combined were income of expectations of during our address assets remain excess recorded on syndication to regulatory addition, expectation pleased which slightly sell higher the was the during and to recapture declined positive standpoint, assets, performance. our credit period. hotel with company loans fee

to repurchase Given program sidelines expect the on the in remain the term. near Summit paused acquisition, we share our and

of Summit quarter. shares as approved or be that our such of recently not branch reconciles for items earnings, severance to million acquisition GAAP to which Slide million are authorized seven was believe our net to These highlighting $X quarterly $X write-downs, additional income plan, $XX.X costs for million in costs important to in expected consolidation earnings Adjusted share X adjusted earnings and legal new credit account and investment million $X a repurchased. per $X.XX the we performance. recur, adjusted settlements, board our expenses. million million understanding $X.X other However, tax

As depicted to equity X.XX%, of common equate on assets a XX.X% on tangible efficiency return slide XX.X%. return these of and average ratio adjusted of on an earnings average eight,

margin loan net PPP quarter. during The increase declined was nine Turning XX, points X driven and these interest from and partially the basis by quarter fees the decline the impact offset primarily net margin This in by was slide the fees asset in non PPP changes X.XX%. lower a linked decline to other on an interest from yields. forgiveness

low continued growth of the modestly investment environment the pressure yields and during securities Asset interest declined rate due the period the portfolio. to from

Over the increased negatively the investment investment of portfolio, the we the course XXXX, has the size margin. which impacted of of

points XX of third was to flat when deposits quarter. of compared the cost Our basis

decreased the in impacted primarily in floor. in term loan have PPP the near PPP, due sales funding decline pricing reached the declines costs while Loan quarter. our to to loans a our slight mix linked ICRE by outlook XX remains very portfolio. as compared in current stability, or as the Our been the changes period loan during and we balances and forgiven, was XXX on was illustrates have those decline We million the ICRE expected same. during The anticipate decline Slide quarter. cost balance

in the the of deposit of million the a encouraged Slide of very bearing acquisition Summit, by growth we from non-interest driven Excluding $XXX the balances and the deposits, average primarily in were from This XX as partially progression well cost increased impact well as higher average funds. total, deposits rest the during shows CDs. these and third by In offset as was of increases mix as portfolio. a quarter, quarter. brokered two decrease deposit events, $XXX our by million public

mindful pricing, and any our income quarter. we'll on We continue needs. market the necessary adjustments and XX funding make based highlights to for our conditions deposit be Slide non-interest of

remained income As Bannockburn production fourth I by management strong was driven record previously, and from mentioned elevated and quarter results. wealth fee

$X.X with and the In to to linked settlement during slightly of than million driven Non-interest addition, due the were is associated it modestly million income $X.X as such in $X.X to we fees. credit increase income the expected Non-interest higher fee compensation, higher XX. the branch write-downs, costs, included expense $X.X million compared on elevated acquisition, performance. expect other million tied recur. legal which core multiple overall These consolidation do where increase non-interest primarily million XX% large of slide expenses and $X.X of the transactions to not and tax cost company's expenses Summit increased expenses. Overall, a quarter. increased include financial was for a was period we by outlined syndication that incentive the severance and quarter $XX.X million This investment other during when period,

charge-offs Net the as and of The This recapture to during recapture resulted basis in model charge-off to and slide of Turning effort total which million and annualized $X.X hotel Our period concentration. both increased added provision decline in to loans balances, of reserves asset sale on figure. million provision driven total now a ACL XX% as million our quarterly an a $X.X funded period. $XXX the company unfunded sold improved includes to percentage a in XX, classified basis, a net points by forecasts. XX allowance $XXX an address loans economic million was in during portfolio

please, For during further the description quarter, of the XX. loan sales see slide

building remains expect expense reserves believe reserves. pace XXXX, we response ACL the recapture in to than and the been of of the beginning aggressively back on but view release, reserve more unchanged. In have in in reserve further at XXXX. Our provision, relatively gradual we and acted the saw when half in a provision pandemic We releasing those conservative and we

on ratios minimum capital slides the of and regulatory period XX to the targets. acquisition remain ratios internal of All despite strong due in shown as capital Finally, and Summit. during excess remain declines XX

near fourth following while previously we repurchases any share any not do I quarter, additional repurchase As not rebuild our the the position in the Summit capital and in mentioned, we term, shares expect acquisition. did

Additionally, any common we term anticipate do the to changes near dividend. not

for capital now the Summit outlook going to and Archie? year continue progresses. will However, it our various comments to actions on we turn as forward. over back I'll evaluate Archie some

Archie Brown

Thank Jamie. you,

term, the Before balances Securities our our found in Loan near remarks, strong, PPP down commercial our to over remains to guidance while which we expected especially Summit. forward-looking modest over next businesses, the mid-single liquidity some had positive stable inflows on we are quarter. payoffs, to over want to come seasonal near be be forgiveness and year. to PPP in comment loan prepared substantial the be by slightly expect of positively excluding which relatively relatively balances margin are to digits expect demand grow slide remaining outflows. and margin Without and the the excluding to with the remain on we I net the expect projected half PPP, the interest conclude balances XX. can The term first further continue impacted any will we stable

from very play impacting Our and rising asset pressures us short are in benefit when significant sheet rates at A we balance the many loan to our early although rates. well sensitive are the to cycle portfolio the in And interest rise variables benefit rate from indexed expected portion is muted. positions expect rates. there of term magnitude timing, especially to positive

further Regarding for expect half credit, less in back expect recapture continue than the improvement and to had the we quality of term, additional XXXX. trends we in near provision

income and excluding expect fluctuate on but $XX $XX updates to income pressure the this decreases mortgage to could program. acquisition with be due and Summit we we seasonality the quarter, will be Summit million as income between Specific some expenses, million seasonal between million, and in expect our excluding million fee the income. acquisition, $XX first to and banking and headwinds to fee rate overdraft $XX to in put see We

amortization. the on from Regarding earnings slightly a term negative a acquisition to impact intangible Summit, impact we XXXX have with near minimal expect the

progress We acquisition a originations, provide in which to $XXX should the million loan strong growth annual expect as lift to through provide the we year.

performance XXXX reevaluate our to the with Financial Lastly, was of we year. deployment the our First and opportunities year the our efforts successful continue and and strong capital to over for Overall, remain associates. pleased company. we elevate capital talented will be outstanding continue ratios another reflects strength of

and growth environment. As into for for well rising the we rate optimistic XXXX, prospects positioned move we are our about are

With and and business, that, Our XXXX clients focus returns open questions. wealth to to executing now service shareholders. our remains superior delivering strategies, momentum management exceptional the to on capitalizing consumer call on our the in deliver will and for up achieved core we our

Operator

you Thank is Scott, comes Our Instructions] question from today [Operator Siefers from first Piper for your Scott open. line Sandler.

Scott Siefers

with maybe for you taking morning, to regarding you wanted Thank Jamie Thank the guys. you. question. the Good start margin.

it? is So just and the the fees, understand basic with think about that the saying you're way X% stable I to the loan best is implied make sure three which

Jamie Anderson

Help say loan fees? you me out you… the in there. What the Scott, would X% do

Scott Siefers

way is basic which the loan margin plus The X% you… basically fees. The

Jamie Anderson

I base at got are we it our and so any that margin would, flat. obviously, kind around without right Yes, rate don't is we hikes, so Yes. yes, to rate be we it? we relatively look have without any hikes, to rate would Call XXX. be hikes, of

Scott Siefers

Okay, perfect. you a rule And of do sort for… of have thumb

Jamie Anderson

PPP is Excluding Scott, right? what

Scott Siefers

Yes, exactly.

on And XX the either NII basis Fed the… then I've thought basis maybe how how you margin in have would for dollars? a Okay. the And of each thumb help point just by rule points hikes of in much sort or

Jamie Anderson

Yes.

rate how it rate the it hikes and give hikes. maybe two I'll as of number you get in different in like, So answers the of we how performs, here terms two,

the the deposit the bit don't more hikes. because moving of as first couple a in couple we hikes, So rate quite get see of we benefit rate side much, first mainly, little from

So in up basis rate points, our basis around points. go would in hike eight first the margin two per

basis that, the interest to point bit, at pressure first benefit net a that in start call we range six that the past after first range will that deposit down two. see basis down we of that get to points point. two, $XX those just then in eight And And as some comes comes of little five So in million probably benefit. it to income

half call million Scott like, right. are amounts. increase in seven the a it and numbers, -- eight more those interest to numbers net in seven And income. annualized So dollar

so would tail and, get, little you come to play end, on a first starts and and would starts up from And can we deposit kind out. Fed bit. then, stop, four, to there, then and go the and then, the so, just of of on it kind catch But, when down the side but, that's obviously, it how the

Scott Siefers

terrific. that's right, All Perfect.

you appreciate it. thank So very much. I

Operator

Scott. you, Thank

Our from now next Daniel Tamayo Raymond is open. James. comes your question from line Daniel,

Daniel Tamayo

a Scott's deposit Thank you. provide the Numbers, follow up just acid question. Good assumptions morning, everyone. in terms you maybe your are what of just beta just? sensitivity? Maybe just, Can for you on

Jamie Anderson

I of like see in Yes, much in said, couple don't first all. mean, so, I the really first hikes, moving deposits that we at the

obviously a there's, so now bucket them And would be, so, would because rate, the deposits in paying floor. scenario, there a negative right normal of but be those are

so lower and higher the at the the whatnot savings in is what looking much, kind which total, going overall to would need money that, is would beta. beta couple side to first and market be going through a category mean, weighted hikes. you're be accounts around much then at of but once that within funds, of push is then, Daniel I that I that look but floor towards have get in be And skewed So on you the XX% public when XX% past kind I range. to mean, in of you overall beta obviously, our deposits

Daniel Tamayo

Okay, provide was other loans there's your And here, loan could any, switching if that of what on your And selling, thought you. gears kind that's sales. terrific. considering just or process thank you helpful, the if then loans you. of buckets thank any you're That's,

Jamie Anderson

up watch, genesis right morning, of And really what hotel at for years, Good and pull was conventions traveler, business type and to alluded bucket. took two just really, we at year a the our well, is. to we've the everything over you constantly activity sale. Sure. more past business set the the comments, monitor like portfolio, travel as we things hotels the as portfolio locations down. see well And take worse and the as opening of city in half, look that, really like on, Archie risk kind know, market center the our seen And in what the some a to looking opportunity dependent and to an mainly as mainly, his challenged our and within

portfolio. included now it the so the our hotels, continue and we focused we'll to service where on And various in but sites. portfolios, and don't we medium anything really that, have within some was hotels, term loan our markets monitor full limited with And different sale right highest felt risk service the short

Archie Brown

And they continued saying maybe book during those where monitoring you some we, we of all online it problematic mind. I more as to the monitoring nicely. larger districts of prudent this is thought we central rebounding in Daniel, little Bill pandemics, came were going of as into were know, this with part most our we're hotels, pandemic ramping business Archie. And was as the were bit the and new about was mean, slower. exit a just is pandemic, up them are the that some But of concerns hotels, in or going, those they really

Daniel Tamayo

the Terrific, had. I I That's appreciate all color. all Thank you.

Archie Brown

Daniel. Thanks,

Operator

Daniel. Thank you,

next question your Our now Chris, comes from KBW. McGratty from line Chris is open.

Chris McGratty

morning. Jamie, or maybe it the the question with Hey, and just with about cadence think do without a on we here ratio. Summit How efficiency from of the good rates? then

Jamie Anderson

Yes, like so the and mean I range. to I guess would rate when little we’re XX from obviously see they're that I maybe significantly rate in going the to moving they ratio hikes. I guess, coming March. up benefit if But into efficiency rate bit if hikes hikes, without come, here XX that, mean, but any look you a

to And in XX% back see more so, just of the move XX%, efficiency you down, kind range. that, that ratios start in

Archie Brown

to Jamie on is it's this really Archie. we focus Chris fair Yes, growth. say mean, I expense managing

revenue but time, is drive to that's course, focus fluctuation expense to there. where think in time typically of leverage fees operating higher. have then which and the area commissioned growth, get you what may the in And we occur to X% on the goal if So from X% higher we

we how that expense side. the like it. we, managed That's think about So

rate And should so we and get pretty be beneficial. the hikes it

Chris McGratty

Right.

Okay. us what you about originations, we talked bit lines, is stuff? for go terms help your think on just I that fees And XXX Yes and Could then in do a million think of you without might how each in that expenses. of guide thanks. those balance Summit, like just also, and that through about sheet

Jamie Anderson

so that we end that. we're mean year, through related lot at of valuation a purchase the got, moving parts of to this given Chris working still the disclosed the I fact so the mean, Yes, accounting I adjustments, the

XXX million leases, them assets. So we we'll item. then will you through finance lease between over of split million in around run other line that XX through loan which And see and brought run up leases from that’s assets leases, ish million that their XX are operating in there's the around and

that types I of on sell those about and masticity they to through they kind on get and the income size depreciation so fund mean, guidance obviously, will balance were then of how the of buckets past, expense. model those, this, non-interest why and we them. of through And non-interest vast those originate and in two operating entire leases, the the on of And are didn't things of the that assets. of a in the the the capacity [ph], their mean, But, I because sheet. that their a production of their it terms we're of lot of assets hold flipping majority information flow they operating one in the put so, the rental running income, slides

we between then mix we trying air optimize to model a we're and vast should, up to, of should and what we're quite forward, the majority leases. is bit of we're And we going So as still operating what hold financing keep, is And, little those. just our in that the should, what plan the the know we mix to bit. their that a changing going and

we overall, but So I mentioned slides, we in like impact mean, is overall the the I relatively to believe neutral. XXXX, meant, like still

we in it, to that the about it of model the for first especially all the the we're beginning, negative we terms of terms then, so we and balance flipping we're assets, need slightly if think front to of beginning quarters, be the just the provide in where well the but Now as we're And couple think in doing going could said, in in you up retain EPS, because like we, maybe quarter, costs to sheet, intangibles up ramp the have amortization. I first fixed expense. also provision need we their as of

year, maybe it's And year, beginning, negative, it's of the the in we towards slight penny builds, And the kind sheet half year. and flips from of the a standpoint. the back as wash half in for really two, think a negative the then progress we a maybe EPS penny So the beginning. a that whole an balance a throughout

Archie Brown

products we're with think standalone. our they've baking do more commercial Archie, existing it in balance And the we that know doing getting somewhere, a to that think not to bring at that's a set really Summit We products, is we upside bigger certainly are doing we're then this but new talking two. about. now XXX that's more. better of as Chris the That's ability that what leasing them there's sheet. we million And using but can That's, shot those we have clients been

the quite of we think So a in XXX million. upside there's bit

Chris McGratty

Okay, expenses. that's related to just back very it's But getting helpful, helpful. the

range a of full year for into the what's quarter of team? a So kind expenses or can full revenues, I back the from

Jamie Anderson

the includes year million what leases. have range I total. overall $X of the retain, and then at somewhere that like to what we assets, dramatically said, $X kind move point. first about retain the like of the the types like this which SG&A expenses, in But in million at first would Chris, quarter, to is look in $XX expense call we overall, based And look going we an they depreciation quarter. million those we're we don't And ish of base, a we quarter this is So problem, what looking on in their throughout at and

Chris McGratty

capital then what I authorizations we new like sideline And understand last how That's rebuild. about the the it. of maybe think on Or in away? a mean, should on for helpful. we months one six to buyback. this terms pick beginning buyback? Perfect. Is Got the

Jamie Anderson

your It's a really Yes, be I close of would we where couple quarter, would would probably out. there. more where but like say minimum, we quarters a be

Chris McGratty

Got Jamie. Thanks it.

Operator

Capital. next from Arfstrom from Thank you, Our comes now Jon, question line Chris. your Jon Instructions] is [Operator open. RBC

Jon Arfstrom

guys. Thank morning, you. Good

Jamie Anderson

Jon. Hey

Jon Arfstrom

follow got you're Summit. see you're Just integration machine on, couldn't saying understand quick I now origination another sheet. on And, you've no months fair? some XXX to million what Is XX up the one million the XXX going balance they but changes or that from we have. real of leases on that

Archie Brown

Jon, no what of Archie. Absolutely the changes to people at Hey process, clients they no do and the in all. the terms it’s on and changes

because I I think year. $XXX that hope get probably the million, focusing is they probably more. we’ll, sheet and they do with to what to at we can we we And, we’ll expectation the the XX% mean, got on for this more of the that mainly hold think hold fact it hold didn't. balance or the XX -- of minimum sort think you, is And we XXX Jamie's

Jon Arfstrom

in any your mind of Okay, your terms sheet? how you this let in on balance get large limits

Archie Brown

on guess mean, X, then, X I there the XX% that that. increase we but comfortable comfortable very if year-over-year say next and over be I I you they're year, XXX, think it's we'd feel doing that point years, Well, could X, XX%, they're, if are yes, for some very so

Jon Arfstrom

Yes.

Okay.

you're at what loan about and growth, in little you bit seeing? XXXX. a that, your You some talked in talked helping expecting about to least Archie, talk payoffs, you Can about moderation

Archie Brown

finance just was for of think we our rush, sold. C&I business. the XXXX. To saw saw, certainly get because levels. were deals think there we our tax saw a potential and do in get payoffs real was especially little our And We significant payoffs. about in -- record done, clients things policy quarter Yes, some company, that We in sort in highest QX, so that to I in bit some commercial estate even thinking

in also we So current had construction probably big there we environment, and of production we done some we lot of were in I rush in -- we and the it record pays from there's the a think CRE, side. but some the it's thing end, think was to still great primary pressure when some CRE pressure, at a quarter. it's part the the it just We levels think there's, was off did think to payoff year That's loan was we going there. first but the see things a in the get abate there

So don't we balance benefit the the should over of immediate that of get fund up it sheet, hitting year. the the here but course

and So us well. of bit will that a tailwind little as give

Jon Arfstrom

a question Bill, for you. Okay.

hotel couple hotel on touched but Just And in the that? up how maybe a portfolio, like is in but follow interest to the looking place I you at or sale, loans of market other much on, there active market? the know, areas, how is that

Bill Harrod

a and, in very that and from very pool best that QX constructed and we our review, was year based strategy was robust all, your was the up QX because the market way we've active. found market really, at robust. on it the tested that is this last was long We And been the very

Jon Arfstrom

I fees. term I on predict near think term how the do Then, want to know terms you're more Bannockburn about given us and on maybe, it's on guess of you some but fees, us those? and one longer to of difficult view mortgage Okay. in outlook

Bill Harrod

an think can there's million revenue top They but that they Jon, see had dollars year, we on continued year. more couple this think Bannockburn in on of we do about a still growth. incredible Yes it,

can Also, increases down impact certainly balance had are side, have come starting the to impact. on an on have margins the On that and some the mortgage as rate actions the sheet the well. Fed

terms we're that say XXXX. would But tell you would range these to what fees anyway. of mid in down we'd that be I from So we we think could probably low worse. slightly that XXs happened And it's origination

Jon Arfstrom

good. All the right Okay help. thanks Pretty for

Bill Harrod

margins [Indiscernible] bit double impacting volume still year are a in. fees. coming They've a seasonally. made more, it over the a certainly little that of later refi and, It's pretty in I still come little talk the side down we mean, of good. and just kind may the But they're it It's good. think

Jon Arfstrom

right, an because there. still it's volume market, the we understand gains Yes, is purchase refi. that and interesting obviously, But

Thanks, So, okay, guys. thanks.

Operator

you, Jon. Thank

up question Siefers Scott question of next Scott, open. follow your a Our is now from line Piper is Sandler.

Scott Siefers

making Hey, lot you anticipation wanted I specific their lot, have a to you'd point little. what revenue a put of just maybe mean, impact and up you. guys you was on a follow changes alluded finer to guys, a policies, which thank are on hoping any people overdraft specific here, making changes there? to fees sort could you I of

Archie Brown

is Yes, Scott Archie. this

projecting So we're you're XXXX. New give back to probably probably context, XXXX, We an And you Year. an terms if we're look And some increase XXXX or the Scott, be of levels a look where into some the X% overdraft projected down. We just year, a this lowered already, the maybe diesel, three at we the XXXX. we from put to more lot caps on you just and revenue. XX%, it XX% these said into go XXXX lowered, kicked kind cushion you you at we fees, status to probably actually eliminated to four XXXX, things tightening overdraft overdraft getting daily if up caps get if where I them at bit. little of decline, before that's charged. And way fee We a down in already, areas, then go through we on look did of compared off out and

of some high That's we But Now, accounts, we to could that to terms I here, XXXX. you growing change a what larger I out little on hoped if gate. the probably of the some of change, say which the about say single this significant don't offset seen amount income. impact of we guess we've bit, that production do. with right I in surprised, talked was in digit in banks range upside get

the We start the monitor competitive if is what will we further continue think make couldn't Year. to our changes remains and to place New road. in program this had we But is down

Scott Siefers

the then follow page to what And Got expenses, it? on to are thinking. wanted Okay, you on sure make just I'm perfect. just guys same up with

ex run full change the know anticipated at should the go portfolio a higher right to is basis. and sounds decrease in closer expect rate as Summit, a XX way that our the toward nuance them term, million to the about showing in got that with think there that like you be million we've core So Summit of on million than would expenses maybe the would you least it a Jamie, Is costs that we time. on it? to to But more to XXX the little way near over expenses in of kind XX Summit

Jamie Anderson

then operating to It'll that though, – correct. in Well, so down the low XXX to the going depend then first on to leases to Scott, XXX is or XXX whatever. it's are and part be XXX And somewhere the there. so going forward, going hit

on point. it's at depend so that going to mix And

on just mix. So that a we kind of financing expense going higher if margin come But depend depreciation and the those so of are more obviously percentage in leases, it’s get in yes, then and up down. would

Scott Siefers

Got it. Got it.

over guess, period it'll tuned happens time. stay sort So a be for I what of of a

Jamie Anderson

Correct.

Scott Siefers

Okay, you. good. Thank

Operator

Thank you, Scott.

We have questions. further no

So any to Archie remarks. I'll closing Brown back hand for

Archie Brown

today and to great pleased great Look to now. everybody look forward us we want joining thank to you talk year. to a us with XXXX. I Have Alex. We're for reviewing quarter. forward day. next and very a XXXX our you, Bye Thank with

Operator

Thank you for joining today’s call.

disconnect. now may You

First Financial Bancorp. (FFBC) 28 Jan 222021 Q4 Earnings call transcript