NASDAQ$FFBC

First Financial Bancorp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported net income of $50.9 million, or $0.52 per diluted common share.

First Financial Bancorp reported strong second quarter results with robust earnings, higher fee income, and lower credit costs. Adjusted earnings per share were $0.58, and the adjusted return on assets was 1.39%.

  • Earnings per diluted share of $0.52; $0.58 on an adjusted basis.
  • Return on average assets of 1.26%; 1.39% as adjusted.
  • Net interest margin FTE of 3.31%.
  • Provision recapture of $4.2 million.

Headline financials

Total Revenue

$157M

Previous: $154M+1.8%
EPS (adj)

$0.58

Previous: $0.40+45.0%
Efficiency Ratio

63.5%

Previous: 57.5%+10.4%
Net Interest Margin

3.3%

No prior period
Return on Average Assets

1.3%

Previous: 1.0%+31.3%
Return on Average Tangible Shareholders' Equity

16.3%

No prior period
Tangible Book Value Per Share

$13.08

No prior period
Capital Expenditures

-$5.16M

Previous: -$9.76M+47.1%
Free Cash Flow

$45.7M

Previous: $27.6M+65.5%
Net Income

$50.9M

Previous: $37.4M+36.1%
Operating Income

$113M

Previous: $57.2M+97.0%
Gross Profit

$157M

Previous: $109M+44.3%
Cash & Equivalents

$246M

Previous: $322M-23.9%
Total Assets

$16B

Previous: $15.9B+1.1%
Stock-Based Comp

$2.49M

Previous: $2.2M+13.5%

Revenue & EPS history

First Financial · Revenue · Quarterly

$157M

Q2 2021+1.8%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

First Financial · $15.3M total across 3 segments · Q3 2021

  • Foreign Exchange Income
    $9.19M
  • Bankcard Income
    $3.84M
  • Client Derivative Fees
    $2.27M

Forward guidance

First Financial anticipates further share buyback activity in the third quarter, absent higher priority capital deployment alternatives. The company expects originations to remain strong in the second half of the year, but also anticipate higher payoffs to continue due to the amount of liquidity in the market.

Tailwinds

  • Expect further reductions in credit costs in the coming periods.
  • Originations to remain strong in the second half of the year.
  • Capital ratios remained strong and in excess of both internal and external targets.
  • Anticipate further share buyback activity in the third quarter.
  • Incorporating the best practices derived from remote environment into our culture moving forward, including greater associate flexibility.

Headwinds

  • Anticipate higher payoffs to continue due to the amount of liquidity in the market.
  • Experiencing some outflows late in the quarter.
  • Loan balances declined during the quarter driven by $288.8 million of PPP forgiveness and elevated prepayments
  • Lower yields on earning assets
  • Additional days during the second quarter

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.0%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.5%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+7.1%

Q1 2018

Best reaction

-11.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+0.2%+2.8%
Q4 2025+5.8%+8.3%+3.2%
Q3 2025-0.9%-3.0%+0.5%
Q2 2025-1.1%+2.0%+4.1%
Q1 2025-4.5%-3.5%-0.0%
Q4 2024+1.8%+0.4%-3.0%
Q3 2024-4.3%+1.7%+17.2%
Q2 2024+6.8%+4.5%+1.8%
Q1 2024+0.1%-2.0%+0.2%
Q4 2023-2.5%-0.3%-6.9%
Q3 2023-8.3%-4.1%+7.7%
Q2 2023-5.4%-5.0%-10.4%
Q1 2023-0.9%-4.3%-9.0%
Q4 2022+4.9%+9.6%+8.4%
Q3 2022-0.8%+2.6%+6.3%
Q2 2022+2.9%+5.2%+12.0%
Q1 2022-5.8%-8.6%-11.1%
Q4 2021-2.4%-0.4%-1.7%
Q3 2021+2.0%+1.7%+2.8%
Q2 2021+0.0%+0.0%+4.6%
Q1 2021+4.1%+2.8%+8.5%
Q4 2020-3.9%+4.5%+17.6%
Q3 2020+4.7%+3.0%+21.1%
Q2 2020+6.2%+0.0%+1.9%
Q1 2020-1.2%+1.1%-7.8%
Q4 2019+0.2%+0.7%-0.8%
Q3 2019-3.0%-0.2%+0.3%
Q2 2019+3.3%+4.8%+2.4%
Q1 2019-1.2%-0.3%-6.6%
Q4 2018+0.2%+2.9%+8.3%
Q3 2018-11.6%-12.4%-2.7%
Q2 2018-1.4%-3.9%+0.0%
Q1 2018+7.1%+8.7%+10.1%
Q4 2017+3.7%+3.2%+2.5%
Q3 2017+4.6%+5.1%+1.5%
Q2 2017-7.6%-6.7%-12.2%
Q1 2017+6.2%+7.0%-4.0%
Q4 2016+2.4%+4.1%+4.8%
Q3 2016+0.5%+0.5%+19.5%
Q2 2016+3.2%+4.4%+5.2%
Q1 2016+0.5%
Q4 2015-2.8%
Q3 2015+3.8%
Q2 2015+3.9%
Q1 2015-4.7%
Q4 2014+0.5%
Q3 2014+5.3%
Q2 2014+2.0%
Q1 2014-1.6%
Q4 2013-0.5%
Q3 2013-0.8%
Q2 2013-0.7%
Q1 2013-0.5%
Q4 2012+1.3%
Q3 2012-3.8%
Q4 2011+0.5%
Q2 2012-1.6%
Q1 2012+2.3%
Q4 2009-0.7%
Q4 2010-0.7%
Q3 2011-6.1%
Q3 2010-6.1%
Q2 2010+0.1%
Q2 2011+0.1%
Q1 2010+2.2%
Q1 2011+2.2%

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