NASDAQ$FFBC

First Financial Bancorp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second quarter 2022 financial results, with earnings per diluted share of $0.55.

First Financial Bancorp reported a net income of $51.5 million, or $0.55 per diluted common share, for the three months ended June 30, 2022. This compares to a net income of $41.3 million, or $0.44 per diluted common share, for the first quarter of 2022. Strong loan growth and an increase in net interest margin contributed to the improved results.

  • Earnings per diluted share of $0.55; $0.56 on an adjusted basis
  • Return on average assets of 1.28%; 1.31% on an adjusted basis
  • Net interest margin on FTE basis of 3.47%; 30 bp increase from linked quarter
  • Loan growth of $191.4 million, excluding PPP; 8.3% on an annualized basis

Headline financials

Total Revenue

$167M

Previous: $157M+6.3%
EPS (adj)

$0.56

Previous: $0.58-3.4%
Efficiency Ratio

61.8%

Previous: 63.5%-2.7%
Net Interest Margin

3.5%

Previous: 3.3%+4.8%
Return on Average Assets

1.3%

Previous: 1.3%+1.6%
Capital Expenditures

-$7.24M

Previous: -$5.16M-40.2%
Free Cash Flow

$44.3M

Previous: $45.7M-3.2%
Net Income

$51.5M

Previous: $50.9M+1.2%
Operating Income

$116M

Previous: $113M+3.2%
Gross Profit

$160M

Previous: $157M+2.3%
Cash & Equivalents

$488M

Previous: $246M+98.6%
Total Assets

$16.2B

Previous: $16B+1.3%
Stock-Based Comp

$2.32M

Previous: $2.49M-6.9%

Revenue & EPS history

First Financial · Revenue · Quarterly

$167M

Q2 2022+6.3%vs Q2 2021
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 Bancorp is optimistic that their balance sheet is positioned to further benefit from additional rate increases and strong loan activity in the back half of the year. They remain diligent in their credit monitoring and are prepared to manage a downturn in the economy should it occur later in the interest rate cycle.

Tailwinds

  • Balance sheet is positioned to further benefit from additional rate increases.
  • Loan activity remains strong.
  • Earnings improved from the first quarter as our asset sensitive balance sheet was positively impacted by recent rate increases.
  • Credit quality was stable with lower net charge-offs and nonaccrual loan balances.
  • Total fee income surpassed our expectations due to record foreign exchange income, strong income from limited partnership investments and growing leasing business income.

Headwinds

  • Continue to experience headwinds in mortgage banking income due to the rapid rise in interest rates.
  • Recent overdraft program changes led to a modest reduction in deposit account service charges and expect further decline due to these program changes in the coming periods.
  • Decline in the ICRE portfolio, which was driven by elevated prepayments.
  • Potential economic downturn later in the interest rate cycle.
  • Mortgage banking income decreased.

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 2022

Historical avgQ2 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro