NASDAQ$FFBC

First Financial Bancorp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third quarter financial results, with strong earnings, loan growth, and fee income, alongside lower credit costs and improving credit trends.

First Financial Bancorp reported a net income of $60.0 million, or $0.63 per diluted common share, for the three months ended September 30, 2021. The results were the highest since the MainSource merger in 2018, driven by a significant provision recapture of $10.1 million and strong mortgage and wealth management revenues.

  • Earnings per diluted share of $0.63 on both GAAP and adjusted basis.
  • Return on average assets of 1.49% on both GAAP and adjusted basis.
  • Net interest margin FTE of 3.32%.
  • Loan growth of $74.8 million, excluding decline in PPP loans.

Headline financials

Total Revenue

$156M

Previous: $162M-3.5%
EPS (adj)

$0.63

Previous: $0.44+43.2%
Efficiency Ratio

63.5%

Previous: 60.3%+5.3%
Net Interest Margin

3.3%

Previous: 3.4%-1.2%
Return on Average Assets

1.5%

Previous: 1.0%+43.3%
Tangible Book Value Per Share

$13.09

No prior period
Common Equity Tier 1 Ratio

11.5%

No prior period
Tier 1 Ratio

11.9%

No prior period
Total Capital Ratio

15.0%

No prior period
Leverage Ratio

9.1%

No prior period
Capital Expenditures

-$10.6M

Previous: -$13.4M+20.9%
Free Cash Flow

$49.4M

Previous: $28.1M+76.0%
Net Income

$60M

Previous: $41.5M+44.7%
Operating Income

$92.7M

Previous: $42.5M+118.0%
Gross Profit

$146M

Previous: $103M+41.8%
Cash & Equivalents

$240M

Previous: $246M-2.6%
Total Assets

$16B

Previous: $15.9B+0.2%
Stock-Based Comp

$2.23M

Previous: $2.02M+10.8%

Revenue & EPS history

First Financial · Revenue · Quarterly

$156M

Q3 2021-3.5%vs Q3 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 Bancorp expects further reductions in credit costs in the fourth quarter of 2021 and the first part of 2022, driven by optimism for further economic recovery.

Tailwinds

  • Expecting further reductions in credit costs in Q4 2021 and early 2022.
  • Improving credit quality trends.
  • Lower net charge-offs.
  • Declines in classified asset balances.
  • Strong origination activity.

Headwinds

  • Total loan balances declined $150.6 million due to PPP forgiveness of $225.4 million.
  • Loan payoffs remained high, particularly in specialty finance and ICRE units.
  • Noninterest expenses increased due to incentive compensation tied to the Company's strong financial performance and modest increases in marketing costs and professional services.
  • Noninterest income decreased (14.1)%
  • Loan balances declined $150.6 million from 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 Q3 2021

Historical avgQ3 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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