NASDAQ$FFBC

First Financial Bancorp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced third quarter 2020 financial results.

First Financial Bancorp reported a net income of $41.5 million, or $0.42 per diluted common share, for the three months ended September 30, 2020. The company's strong third quarter operating results were driven by exceptional fee income.

  • Earnings per diluted share of $0.42; $0.44 on an adjusted basis.
  • Return on average assets of 1.04%; 1.09% as adjusted.
  • Record core fee income driven by $18.6 million of mortgage banking and $10.5 million of foreign exchange income.
  • Provision for credit losses of $13.4 million; 34% reduction from second quarter.

Headline financials

Total Revenue

$162M

Previous: $155M+4.5%
EPS (adj)

$0.44

Previous: $0.56-21.4%
Efficiency Ratio

60.3%

No prior period
Net Interest Margin

3.4%

No prior period
Return on Average Assets

1.0%

No prior period
Return on Average Tangible Shareholders' Equity

13.6%

No prior period
Capital Expenditures

-$13.4M

Previous: -$15.2M+12.0%
Free Cash Flow

$28.1M

Previous: $35.6M-21.2%
Net Income

$41.5M

Previous: $50.9M-18.4%
Operating Income

$42.5M

Previous: $56M-24.0%
Gross Profit

$103M

Previous: $129M-20.3%
Cash & Equivalents

$246M

Previous: $282M-12.8%
Total Assets

$15.9B

Previous: $14.5B+10.0%
Stock-Based Comp

$2.02M

Previous: $1.71M+18.2%

Revenue & EPS history

First Financial · Revenue · Quarterly

$162M

Q3 2020+4.5%vs Q3 2019
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 encouraged by their improved operating performance and by the resiliency of their associates. They remain committed to managing pandemic priorities and positioning the Company for even stronger performance when the health crisis subsides.

Tailwinds

  • Maintaining the health and safety of associates.
  • Assisting clients and communities.
  • Strengthening the Company.
  • Capitalizing on the continued historic low interest rate environment to drive another sensational quarter in mortgage banking revenue.
  • Service charges improved as local economies continued to gradually reopen and consumer spending increased.

Headwinds

  • Continued interest rate headwinds.
  • Difficult business conditions.
  • Increasing Covid-19 cases in the Midwest.
  • Uncertainty about the timing of vaccines to bring the pandemic under control.
  • Recorded $13.4 million of provision expense in anticipation of credit deterioration in future quarters.

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 Q3 2020

Historical avgQ3 2020

+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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