First Financial Bancorp : Announces Fourth Quarter and Full Year 2017 Financial Results

CINCINNATI, Jan. 18, 2018 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ('First Financial' or the 'Company') announced financial results for the fourth quarter and full year 2017. For the three months ended December 31, 2017, the Company reported net income of $24.8 million, or $0.40 per diluted common share. These results compare to net income of $24.8 million, or $0.40 per diluted common share, for the third quarter of 2017 and $23.3 million, or $0.38 per diluted common share, for the fourth quarter of 2016. For the twelve months ended December 31, 2017, First Financial had earnings per diluted common share of $1.56 compared to $1.43 for the same period in 2016.

Return on average assets for the fourth quarter of 2017 was 1.13% while return on average tangible common equity was 13.85%. These compare to a return on average assets of 1.13% and return on average tangible common equity of 14.10% in the third quarter of 2017 and a return on average assets of 1.11% and a return on average tangible common equity of 14.19% in the fourth quarter of 2016. The return on average assets and tangible common equity were 1.12% and 14.07%, respectively, for the twelve months ended December 31, 2017.

Fourth quarter 2017 net income totaled $0.40 per share on a GAAP basis, in line with the prior quarter. Fourth quarter 2017 net income totaled $0.45 per share on an adjusted basis as detailed in the accompanying slide presentation, a 15% increase from the prior quarter.

Significant items impacting fourth quarter performance include:

• Net interest margin increased 25 basis points to 3.75% on a GAAP basis, 3.82% on a fully tax equivalent basis
• • Elevated loan fees, solid execution of recent deposit strategies and favorable shifts in earning asset and funding mix

• Noninterest expense increased $28.5 million, or 52.3%, compared to the linked quarter, including:
• • $11.3 million historic tax credit investment write-down
  • $8.4 million of merger-related expenses
  • $5.1 million impairment charge resulting from preliminary agreement to early terminate FDIC loss sharing agreements
  • $3.0 million charitable contribution to the First Financial Foundation

• Impact of the recent tax reform legislation and historic tax credits on income tax expense

• Strong credit performance including lower net charge-offs, nonperforming loans and classified assets resulted in provision recapture of $0.2 million

Full detail of the Company's fourth quarter and full year performance are provided in the accompanying financial statements and slide presentation.

Claude Davis, Chief Executive Officer, commented, 'Strong earnings, improved net interest margin, continued credit improvement and stable loan growth combined to produce fourth quarter adjusted earnings of $0.45 per share, representing our 109th consecutive quarter of profitability. The increase in net interest margin was driven by the combination of higher loan fees, improved earning asset mix and lower funding costs resulting from deposit strategies implemented during the third quarter.'

'Fourth quarter results were also impacted by the recently enacted tax reform legislation, the preliminary agreement to early terminate our FDIC-loss sharing agreements and the realization of a significant historic tax credit. Additionally, we made a $3.0 million charitable contribution to the newly established First Financial Foundation during the period and continued to make steady progress in our integration efforts as we near our anticipated merger with MainSource Financial Group.'

'We remain extremely excited about our pending merger with MainSource and the formation of a new First Financial with the necessary scale and reach to successfully execute our strategy, deliver exceptional client service and provide solid shareholder returns. Finally, I want to take the opportunity to thank our associates for their efforts in 2017. As the embodiment of our organizational values, the work they do every day adds great value in exceeding client expectations, serving our communities and driving First Financial's current and future success.'

This release announcing our fourth quarter and full year 2017 financial results includes an accompanying slide presentation, which management intends to refer to during the conference call on Friday, January 19, 2018.

Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, January 19, 2018 at 8:30 a.m. Eastern Standard Time. Members of the public who would like to listen to the conference call should dial [phone] (U.S. toll free), [phone] (Canada toll free) or [phone] (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at [phone] (U.S. toll free), [phone] (Canada toll free) and [phone] (International); conference number 10115503. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on Website
This press release as well as supplemental information and any non-GAAP reconciliations related to this release is available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of December 31, 2017, the Company had $8.9 billion in assets, $6.0 billion in loans, $6.9 billion in deposits and $930.7 million in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its four lines of business: Commercial and Private Banking, Retail Banking, Investment Commercial Real Estate and Commercial Finance. These business units provide traditional banking services to business and retail clients. Commercial and Private Banking includes First Financial Wealth Management, which provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.7 billion in assets under management as of December 31, 2017. The Company's primary operating markets are located in Ohio, Indiana and Kentucky where it operates 94 banking centers, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.

Forward-Looking Statement
Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, certain plans, expectations, goals, projections and benefits relating to the transaction between the Company and MainSource, which are subject to numerous assumptions, risks and uncertainties. Words such as ''believes,'' ''anticipates,'' 'likely,' 'expected,' 'estimated,' ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of the management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; (ii) the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iii) management's ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (v) the Company's ability to comply with the terms of loss sharing agreements with the FDIC; (vi) the effect of changes in accounting policies and practices; (vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers' performance and creditworthiness; and (ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Form 10-K for the year ended December 31, 2016, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov.

Statements concerning the potential merger of the Company and MainSource may also be forward-looking statements. Please refer to each of the Company's and MainSource's Annual Report on Form 10-K for the year ended December 31, 2016, as well as their other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

In addition to factors previously disclosed in reports filed by the Company and MainSource with the SEC, risks and uncertainties for the Company, MainSource and the combined company include, but are not limited to: the possibility that any of the anticipated benefits of the proposed Merger will not be realized or will not be realized within the expected time period; the risk that integration of MainSource's operations with those of the Company will be materially delayed or will be more costly or difficult than expected; the inability to close the Merger in a timely manner; diversion of management's attention from ongoing business operations and opportunities; the failure to satisfy other conditions to completion of the , including receipt of required regulatory and other approvals; the failure of the proposed Merger to close for any other reason; the challenges of integrating and retaining key employees; the effect of the announcement of the Merger on the Company's, MainSource's or the combined company's respective customer relationships and operating results; the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and general competitive, economic, political and market conditions and fluctuations. All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, neither the Company nor MainSource assumes any obligation to update any forward-looking statement.

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,																				Twelve months ended,
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Dec. 31,
	2017				2017				2017				2017				2016				2017				2016
RESULTS OF OPERATIONS
Net income	$	24,811			$	24,826			$	22,736			$	24,414			$	23,294			$	96,787			$	88,526
Net earnings per share - basic	$	0.40			$	0.40			$	0.37			$	0.40			$	0.38			$	1.57			$	1.45
Net earnings per share - diluted	$	0.40			$	0.40			$	0.37			$	0.39			$	0.38			$	1.56			$	1.43
Dividends declared per share	$	0.17			$	0.17			$	0.17			$	0.17			$	0.16			$	0.68			$	0.64
KEY FINANCIAL RATIOS
Return on average assets	1.13		%		1.13		%		1.06		%		1.18		%		1.11		%		1.12		%		1.07		%
Return on average shareholders' equity	10.70		%		10.85		%		10.25		%		11.36		%		10.73		%		10.78		%		10.48		%
Return on average tangible shareholders' equity	13.85		%		14.10		%		13.42		%		14.98		%		14.19		%		14.07		%		13.96		%
Net interest margin	3.75		%		3.50		%		3.50		%		3.63		%		3.66		%		3.59		%		3.62		%
Net interest margin (fully tax equivalent) (1)	3.82		%		3.57		%		3.56		%		3.70		%		3.71		%		3.66		%		3.68		%
Ending shareholders' equity as a percent of ending assets	10.46		%		10.44		%		10.31		%		10.32		%		10.25		%		10.46		%		10.25		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	8.30		%		8.25		%		8.09		%		8.05		%		7.96		%		8.30		%		7.96		%
Risk-weighted assets	10.11		%		9.95		%		9.92		%		9.90		%		9.73		%		10.11		%		9.73		%
Average shareholders' equity as a percent of average assets	10.54		%		10.42		%		10.36		%		10.36		%		10.33		%		10.42		%		10.24		%
Average tangible shareholders' equity as a percent of
average tangible assets	8.34		%		8.21		%		8.12		%		8.06		%		8.01		%		8.19		%		7.89		%
Book value per share	$	14.99			$	14.74			$	14.45			$	14.16			$	13.96			$	14.99			$	13.96
Tangible book value per share	$	11.62			$	11.36			$	11.07			$	10.78			$	10.56			$	11.62			$	10.56
Common equity tier 1 ratio (2)	10.59		%		10.53		%		10.54		%		10.59		%		10.46		%		10.59		%		10.46		%
Tier 1 ratio (2)	10.59		%		10.53		%		10.54		%		10.59		%		10.46		%		10.59		%		10.46		%
Total capital ratio (2)	13.02		%		12.98		%		13.05		%		13.19		%		13.10		%		13.02		%		13.10		%
Leverage ratio (2)	8.84		%		8.74		%		8.69		%		8.69		%		8.60		%		8.84		%		8.60		%
AVERAGE BALANCE SHEET ITEMS
Loans (3)	$	5,952,290			$	5,902,053			$	5,789,610			$	5,736,513			$	5,780,865			$	5,845,863			$	5,628,617
FDIC indemnification asset	7,413				8,932				10,327				11,520				12,782				9,535				14,831
Investment securities	2,020,040				2,041,785				2,035,334				1,906,699				1,816,944				2,001,387				1,858,878
Interest-bearing deposits with other banks	25,357				37,199				20,293				40,985				19,557				30,933				21,907
Total earning assets	$	8,005,100			$	7,989,969			$	7,855,564			$	7,695,717			$	7,630,148			$	7,887,718			$	7,524,233
Total assets	$	8,731,956			$	8,716,917			$	8,582,961			$	8,409,071			$	8,359,912			$	8,611,403			$	8,251,703
Noninterest-bearing deposits	$	1,637,228			$	1,510,032			$	1,513,995			$	1,499,097			$	1,544,598			$	1,540,384			$	1,456,802
Interest-bearing deposits	5,202,412				5,170,365				5,056,223				4,942,766				5,012,613				5,093,865				4,844,243
Total deposits	$	6,839,640			$	6,680,397			$	6,570,218			$	6,441,863			$	6,557,211			$	6,634,249			$	6,301,045
Borrowings	$	842,211			$	999,818			$	995,132			$	968,326			$	815,928			$	951,159			$	1,000,079
Shareholders' equity	$	920,194			$	908,057			$	889,604			$	871,215			$	863,509			$	897,431			$	844,784
CREDIT QUALITY RATIOS
Allowance to ending loans	0.90		%		0.91		%		0.93		%		0.98		%		1.01		%		0.90		%		1.01		%
Allowance to nonaccrual loans	224.32		%		181.07		%		150.05		%		169.85		%		326.91		%		224.32		%		326.91		%
Allowance to nonperforming loans	129.77		%		109.48		%		96.77		%		89.25		%		120.83		%		129.77		%		120.83		%
Nonperforming loans to total loans	0.69		%		0.83		%		0.97		%		1.10		%		0.83		%		0.69		%		0.83		%
Nonperforming assets to ending loans, plus OREO	0.74		%		0.89		%		1.07		%		1.19		%		0.94		%		0.74		%		0.94		%
Nonperforming assets to total assets	0.50		%		0.60		%		0.72		%		0.80		%		0.64		%		0.50		%		0.64		%
Classified assets to total assets	0.98		%		1.08		%		1.13		%		1.34		%		1.48		%		0.98		%		1.48		%
Net charge-offs to average loans (annualized)	0.02		%		0.22		%		0.13		%		0.14		%		0.17		%		0.13		%		0.10		%

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

(2) December 31, 2017 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	Three months ended,											Twelve months ended,
	Dec. 31,											Dec. 31,
	2017				2016				% Change			2017				2016				% Change
Interest income
Loans and leases, including fees	$	74,347			$	67,883			9.5	%		$	280,111			$	262,703			6.6	%
Investment securities
Taxable	13,212				10,698				23.5	%		50,568				43,103				17.3	%
Tax-exempt	1,571				1,134				38.5	%		5,918				4,535				30.5	%
Total investment securities interest	14,783				11,832				24.9	%		56,486				47,638				18.6	%
Other earning assets	(592)				(1,068)				44.6	%		(3,524)				(4,391)				19.7	%
Total interest income	88,538				78,647				12.6	%		333,073				305,950				8.9	%
Interest expense
Deposits	9,243				6,026				53.4	%		35,182				22,613				55.6	%
Short-term borrowings	2,144				915				134.3	%		8,193				4,506				81.8	%
Long-term borrowings	1,537				1,540				(0.2)	%		6,153				6,160				(0.1)	%
Total interest expense	12,924				8,481				52.4	%		49,528				33,279				48.8	%
Net interest income	75,614				70,166				7.8	%		283,545				272,671				4.0	%
Provision for loan and lease losses	(205)				2,761				(107.4)	%		3,582				10,140				(64.7)	%
Net interest income after provision for loan and lease losses	75,819				67,405				12.5	%		279,963				262,531				6.6	%
Noninterest income
Service charges on deposit accounts	5,190				5,041				3.0	%		19,775				18,933				4.4	%
Trust and wealth management fees	3,597				3,241				11.0	%		14,073				13,200				6.6	%
Bankcard income	3,390				3,136				8.1	%		13,298				12,132				9.6	%
Client derivative fees	2,047				466				339.3	%		6,418				4,570				40.4	%
Net gains from sales of loans	1,171				1,711				(31.6)	%		5,169				6,804				(24.0)	%
Net gains on sale of investment securities	19				0				N/M			1,649				234				N/M
Other	2,968				3,351				(11.4)	%		15,760				13,728				14.8	%
Total noninterest income	18,382				16,946				8.5	%		76,142				69,601				9.4	%
Noninterest expenses
Salaries and employee benefits	35,439				31,127				13.9	%		132,560				122,361				8.3	%
Net occupancy	4,252				4,338				(2.0)	%		17,397				18,329				(5.1)	%
Furniture and equipment	1,969				2,181				(9.7)	%		8,443				8,663				(2.5)	%
Data processing	3,768				3,095				21.7	%		14,022				11,406				22.9	%
Marketing	1,060				1,458				(27.3)	%		3,201				3,965				(19.3)	%
Communication	474				404				17.3	%		1,819				1,889				(3.7)	%
Professional services	9,766				1,731				464.2	%		15,023				6,303				138.3	%
State intangible tax	492				117				320.5	%		2,655				2,034				30.5	%
FDIC assessments	943				1,001				(5.8)	%		3,944				4,293				(8.1)	%
Loss (gain) - other real estate owned	219				(953)				(123.0)	%		642				(1,212)				(153.0)	%
Other	24,516				5,664				332.8	%		40,236				23,370				72.2	%
Total noninterest expenses	82,898				50,163				65.3	%		239,942				201,401				19.1	%
Income before income taxes	11,303				34,188				(66.9)	%		116,163				130,731				(11.1)	%
Income tax expense	(13,508)				10,894				(224.0)	%		19,376				42,205				(54.1)	%
Net income	$	24,811			$	23,294			6.5	%		$	96,787			$	88,526			9.3	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.40			$	0.38						$	1.57			$	1.45
Net earnings per share - diluted	$	0.40			$	0.38						$	1.56			$	1.43
Dividends declared per share	$	0.17			$	0.16						$	0.68			$	0.64
Return on average assets	1.13		%		1.11		%					1.12		%		1.07		%
Return on average shareholders' equity	10.70		%		10.73		%					10.78		%		10.48		%
Interest income	$	88,538			$	78,647			12.6	%		$	333,073			$	305,950			8.9	%
Tax equivalent adjustment	1,387				1,077				28.8	%		5,259				4,215				24.8	%
Interest income - tax equivalent	89,925				79,724				12.8	%		338,332				310,165				9.1	%
Interest expense	12,924				8,481				52.4	%		49,528				33,279				48.8	%
Net interest income - tax equivalent	$	77,001			$	71,243			8.1	%		$	288,804			$	276,886			4.3	%
Net interest margin	3.75		%		3.66		%					3.59		%		3.62		%
Net interest margin (fully tax equivalent) (1)	3.82		%		3.71		%					3.66		%		3.68		%
Full-time equivalent employees	1,304				1,420
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2017
	Fourth				Third				Second				First				Full				% Change
	Quarter				Quarter				Quarter				Quarter				Year				Linked Qtr.
Interest income
Loans and leases, including fees	$	74,347			$	71,148			$	67,748			$	66,868			$	280,111			4.5	%
Investment securities
Taxable	13,212				13,150				12,598				11,608				50,568				0.5	%
Tax-exempt	1,571				1,537				1,457				1,353				5,918				2.2	%
Total investment securities interest	14,783				14,687				14,055				12,961				56,486				0.7	%
Other earning assets	(592)				(917)				(1,014)				(1,001)				(3,524)				35.4	%
Total interest income	88,538				84,918				80,789				78,828				333,073				4.3	%
Interest expense
Deposits	9,243				10,335				8,679				6,925				35,182				(10.6)	%
Short-term borrowings	2,144				2,566				2,051				1,432				8,193				(16.4)	%
Long-term borrowings	1,537				1,538				1,539				1,539				6,153				(0.1)	%
Total interest expense	12,924				14,439				12,269				9,896				49,528				(10.5)	%
Net interest income	75,614				70,479				68,520				68,932				283,545				7.3	%
Provision for loan and lease losses	(205)				2,953				467				367				3,582				(106.9)	%
Net interest income after provision for loan and lease losses	75,819				67,526				68,053				68,565				279,963				12.3	%
Noninterest income
Service charges on deposit accounts	5,190				5,169				4,772				4,644				19,775				0.4	%
Trust and wealth management fees	3,597				3,324				3,405				3,747				14,073				8.2	%
Bankcard income	3,390				3,272				3,501				3,135				13,298				3.6	%
Client derivative fees	2,047				1,779				1,489				1,103				6,418				15.1	%
Net gains from sales of loans	1,171				1,455				1,327				1,216				5,169				(19.5)	%
Net gains on sale of investment securities	19				276				838				516				1,649				(93.1)	%
Other	2,968				7,667				2,122				3,003				15,760				(61.3)	%
Total noninterest income	18,382				22,942				17,454				17,364				76,142				(19.9)	%
Noninterest expenses
Salaries and employee benefits	35,439				33,827				31,544				31,750				132,560				4.8	%
Net occupancy	4,252				4,328				4,302				4,515				17,397				(1.8)	%
Furniture and equipment	1,969				2,161				2,136				2,177				8,443				(8.9)	%
Data processing	3,768				3,455				3,501				3,298				14,022				9.1	%
Marketing	1,060				649				982				510				3,201				63.3	%
Communication	474				430				468				447				1,819				10.2	%
Professional services	9,766				2,030				1,469				1,758				15,023				N/M
State intangible tax	492				721				721				721				2,655				(31.8)	%
FDIC assessments	943				1,051				1,018				932				3,944				(10.3)	%
Loss (gain) - other real estate owned	219				237				162				24				642				(7.6)	%
Other	24,516				5,554				5,253				4,913				40,236				N/M
Total noninterest expenses	82,898				54,443				51,556				51,045				239,942				52.3	%
Income before income taxes	11,303				36,025				33,951				34,884				116,163				(68.6)	%
Income tax expense	(13,508)				11,199				11,215				10,470				19,376				N/M
Net income	$	24,811			$	24,826			$	22,736			$	24,414			$	96,787			(0.1)	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.40			$	0.40			$	0.37			$	0.40			$	1.57
Net earnings per share - diluted	$	0.40			$	0.40			$	0.37			$	0.39			$	1.56
Dividends declared per share	$	0.17			$	0.17			$	0.17			$	0.17			$	0.68
Return on average assets	1.13		%		1.13		%		1.06		%		1.18		%		1.12		%
Return on average shareholders' equity	10.70		%		10.85		%		10.25		%		11.36		%		10.78		%
Interest income	$	88,538			$	84,918			$	80,789			$	78,828			$	333,073			4.3	%
Tax equivalent adjustment	1,387				1,353				1,294				1,225				5,259				2.5	%
Interest income - tax equivalent	89,925				86,271				82,083				80,053				338,332				4.2	%
Interest expense	12,924				14,439				12,269				9,896				49,528				(10.5)	%
Net interest income - tax equivalent	$	77,001			$	71,832			$	69,814			$	70,157			$	288,804			7.2	%
Net interest margin	3.75		%		3.50		%		3.50		%		3.63		%		3.59		%
Net interest margin (fully tax equivalent) (1)	3.82		%		3.57		%		3.56		%		3.70		%		3.66		%
Full-time equivalent employees	1,304				1,363				1,429				1,424
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
		2016
		Fourth				Third				Second				First				Full
		Quarter				Quarter				Quarter				Quarter				Year
Interest income
Loans and leases, including fees		$	67,883			$	66,997			$	64,424			$	63,399			$	262,703
Investment securities
Taxable		10,698				10,326				10,706				11,373				43,103
Tax-exempt		1,134				1,083				1,156				1,162				4,535
Total investment securities interest		11,832				11,409				11,862				12,535				47,638
Other earning assets		(1,068)				(1,081)				(1,103)				(1,139)				(4,391)
Total interest income		78,647				77,325				75,183				74,795				305,950
Interest expense
Deposits		6,026				5,600				5,457				5,530				22,613
Short-term borrowings		915				1,368				1,053				1,170				4,506
Long-term borrowings		1,540				1,539				1,541				1,540				6,160
Total interest expense		8,481				8,507				8,051				8,240				33,279
Net interest income		70,166				68,818				67,132				66,555				272,671
Provision for loan and lease losses		2,761				1,687				4,037				1,655				10,140
Net interest income after provision for loan and lease losses		67,405				67,131				63,095				64,900				262,531
Noninterest income
Service charges on deposit accounts		5,041				5,056				4,455				4,381				18,933
Trust and wealth management fees		3,241				3,236				3,283				3,440				13,200
Bankcard income		3,136				2,984				3,130				2,882				12,132
Client derivative fees		466				1,210				1,799				1,095				4,570
Net gains from sales of loans		1,711				2,066				1,846				1,181				6,804
Net gains on sale of investment securities		0				398				(188)				24				234
Other		3,351				1,999				5,869				2,509				13,728
Total noninterest income		16,946				16,949				20,194				15,512				69,601
Noninterest expenses
Salaries and employee benefits		31,127				32,093				29,526				29,615				122,361
Net occupancy		4,338				4,543				4,491				4,957				18,329
Furniture and equipment		2,181				2,139				2,130				2,213				8,663
Data processing		3,095				2,828				2,765				2,718				11,406
Marketing		1,458				641				801				1,065				3,965
Communication		404				527				477				481				1,889
Professional services		1,731				1,460				1,299				1,813				6,303
State intangible tax		117				639				639				639				2,034
FDIC assessments		1,001				1,048				1,112				1,132				4,293
Loss (gain) - other real estate owned		(953)				(112)				43				(190)				(1,212)
Other		5,664				5,299				6,130				6,277				23,370
Total noninterest expenses		50,163				51,105				49,413				50,720				201,401
Income before income taxes		34,188				32,975				33,876				29,692				130,731
Income tax expense		10,894				10,125				11,308				9,878				42,205
Net income		$	23,294			$	22,850			$	22,568			$	19,814			$	88,526
ADDITIONAL DATA
Net earnings per share - basic		$	0.38			$	0.37			$	0.37			$	0.32			$	1.45
Net earnings per share - diluted		$	0.38			$	0.37			$	0.36			$	0.32			$	1.43
Dividends declared per share		$	0.16			$	0.16			$	0.16			$	0.16			$	0.64
Return on average assets		1.11		%		1.09		%		1.11		%		0.98		%		1.07		%
Return on average shareholders' equity		10.73		%		10.62		%		10.84		%		9.70		%		10.48		%
Interest income		$	78,647			$	77,325			$	75,183			$	74,795			$	305,950
Tax equivalent adjustment		1,077				1,028				1,058				1,052				4,215
Interest income - tax equivalent		79,724				78,353				76,241				75,847				310,165
Interest expense		8,481				8,507				8,051				8,240				33,279
Net interest income - tax equivalent		$	71,243			$	69,846			$	68,190			$	67,607			$	276,886
Net interest margin		3.66		%		3.61		%		3.61		%		3.62		%		3.62		%
Net interest margin (fully tax equivalent) (1)		3.71		%		3.66		%		3.67		%		3.68		%		3.68		%
Full-time equivalent employees		1,420				1,402				1,403				1,390
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				% Change			% Change
	2017				2017				2017				2017				2016				Linked Qtr.			Comparable Qtr.
ASSETS
Cash and due from banks	$	150,650			$	117,840			$	117,478			$	117,914			$	121,598			27.8	%		23.9	%
Interest-bearing deposits with other banks	33,974				34,787				29,839				39,058				82,450				(2.3)	%		(58.8)	%
Investment securities available-for-sale	1,349,408				1,286,770				1,298,578				1,220,046				1,039,870				4.9	%		29.8	%
Investment securities held-to-maturity	654,008				669,816				696,269				730,796				763,254				(2.4)	%		(14.3)	%
Other investments	53,140				53,198				53,285				50,996				51,077				(0.1)	%		4.0	%
Loans held for sale	11,502				16,466				11,939				7,657				13,135				(30.1)	%		(12.4)	%
Loans and leases
Commercial and industrial	1,912,743				1,886,093				1,824,589				1,779,635				1,781,948				1.4	%		7.3	%
Lease financing	89,347				86,014				88,152				88,888				93,108				3.9	%		(4.0)	%
Construction real estate	467,730				420,941				443,112				446,332				399,434				11.1	%		17.1	%
Commercial real estate	2,490,091				2,523,387				2,471,655				2,398,235				2,427,577				(1.3)	%		2.6	%
Residential real estate	471,391				477,964				490,398				486,601				500,980				(1.4)	%		(5.9)	%
Home equity	493,604				494,342				464,066				458,974				460,388				(0.1)	%		7.2	%
Installment	41,586				43,650				47,654				52,063				50,639				(4.7)	%		(17.9)	%
Credit card	46,691				44,646				44,139				43,354				43,408				4.6	%		7.6	%
Total loans	6,013,183				5,977,037				5,873,765				5,754,082				5,757,482				0.6	%		4.4	%
Less:
Allowance for loan and lease losses	54,021				54,534				54,873				56,326				57,961				(0.9)	%		(6.8)	%
Net loans	5,959,162				5,922,503				5,818,892				5,697,756				5,699,521				0.6	%		4.6	%
Premises and equipment	125,036				126,790				128,956				131,808				131,579				(1.4)	%		(5.0)	%
Goodwill and other intangibles	209,379				209,730				210,045				210,324				210,625				(0.2)	%		(0.6)	%
Accrued interest and other assets	350,664				323,789				344,761				324,815				324,858				8.3	%		7.9	%
Total Assets	$	8,896,923			$	8,761,689			$	8,710,042			$	8,531,170			$	8,437,967			1.5	%		5.4	%
LIABILITIES
Deposits
Interest-bearing demand	$	1,453,463			$	1,518,011			$	1,496,173			$	1,494,892			$	1,513,771			(4.3)	%		(4.0)	%
Savings	2,462,420				2,434,086				2,398,262				2,284,821				2,142,189				1.2	%		14.9	%
Time	1,317,105				1,188,597				1,097,911				1,202,563				1,321,843				10.8	%		(0.4)	%
Total interest-bearing deposits	5,232,988				5,140,694				4,992,346				4,982,276				4,977,803				1.8	%		5.1	%
Noninterest-bearing	1,662,058				1,585,396				1,476,563				1,547,600				1,547,985				4.8	%		7.4	%
Total deposits	6,895,046				6,726,090				6,468,909				6,529,876				6,525,788				2.5	%		5.7	%
Federal funds purchased and securities sold
under agreements to repurchase	72,265				45,532				130,633				52,484				120,212				58.7	%		(39.9)	%
FHLB short-term borrowings	742,300				818,200				957,700				806,700				687,700				(9.3)	%		7.9	%
Total short-term borrowings	814,565				863,732				1,088,333				859,184				807,912				(5.7)	%		0.8	%
Long-term debt	119,654				119,615				119,669				119,629				119,589				0.0	%		0.1	%
Total borrowed funds	934,219				983,347				1,208,002				978,813				927,501				(5.0)	%		0.7	%
Accrued interest and other liabilities	136,994				137,298				135,014				142,416				119,454				(0.2)	%		14.7	%
Total Liabilities	7,966,259				7,846,735				7,811,925				7,651,105				7,572,743				1.5	%		5.2	%
SHAREHOLDERS' EQUITY
Common stock	573,109				571,750				569,302				567,911				570,382				0.2	%		0.5	%
Retained earnings	491,847				477,588				463,250				451,073				437,188				3.0	%		12.5	%
Accumulated other comprehensive loss	(20,390)				(20,379)				(22,222)				(26,639)				(28,443)				0.1	%		(28.3)	%
Treasury stock, at cost	(113,902)				(114,005)				(112,213)				(112,280)				(113,903)				(0.1)	%		0.0	%
Total Shareholders' Equity	930,664				914,954				898,117				880,065				865,224				1.7	%		7.6	%
Total Liabilities and Shareholders' Equity	$	8,896,923			$	8,761,689			$	8,710,042			$	8,531,170			$	8,437,967			1.5	%		5.4	%

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages																				Year-to-Date Averages
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				December 31,
	2017				2017				2017				2017				2016				2017				2016
ASSETS
Cash and due from banks	$	121,792			$	111,984			$	116,123			$	115,719			$	122,130			$	116,409			$	119,444
Interest-bearing deposits with other banks	25,357				37,199				20,293				40,985				19,557				30,933				21,907
Investment securities	2,020,040				2,041,785				2,035,334				1,906,699				1,816,944				2,001,387				1,858,878
Loans held for sale	12,572				12,705				9,243				8,125				14,729				10,679				12,725
Loans and leases
Commercial and industrial	1,857,546				1,843,677				1,778,523				1,782,829				1,767,570				1,815,925				1,741,084
Lease financing	84,635				85,649				86,880				89,549				93,817				86,662				96,337
Construction real estate	449,195				408,373				447,716				414,038				376,616				429,868				357,171
Commercial real estate	2,487,149				2,497,170				2,418,355				2,390,004				2,470,280				2,448,570				2,359,480
Residential real estate	477,454				489,508				490,709				497,412				503,711				488,718				508,929
Home equity	494,804				473,988				462,431				459,821				461,177				472,860				465,025
Installment	42,283				45,911				51,275				50,722				49,071				47,520				45,673
Credit card	46,652				45,072				44,478				44,013				43,894				45,061				42,193
Total loans	5,939,718				5,889,348				5,780,367				5,728,388				5,766,136				5,835,184				5,615,892
Less:
Allowance for loan and lease losses	55,279				55,326				57,379				58,461				58,733				56,599				56,860
Net loans	5,884,439				5,834,022				5,722,988				5,669,927				5,707,403				5,778,585				5,559,032
Premises and equipment	126,310				128,539				131,654				132,384				132,414				129,702				135,505
Goodwill and other intangibles	209,571				209,933				210,215				210,513				210,768				210,055				211,215
Accrued interest and other assets	331,875				340,750				337,111				324,719				335,967				333,653				332,997
Total Assets	$	8,731,956			$	8,716,917			$	8,582,961			$	8,409,071			$	8,359,912			$	8,611,403			$	8,251,703
LIABILITIES
Deposits
Interest-bearing demand	$	1,502,245			$	1,494,367			$	1,483,186			$	1,484,427			$	1,540,755			$	1,491,114			$	1,465,804
Savings	2,518,771				2,494,592				2,408,950				2,224,708				2,093,557				2,412,788				2,022,564
Time	1,181,396				1,181,406				1,164,087				1,233,631				1,378,301				1,189,963				1,355,875
Total interest-bearing deposits	5,202,412				5,170,365				5,056,223				4,942,766				5,012,613				5,093,865				4,844,243
Noninterest-bearing	1,637,228				1,510,032				1,513,995				1,499,097				1,544,598				1,540,384				1,456,802
Total deposits	6,839,640				6,680,397				6,570,218				6,441,863				6,557,211				6,634,249				6,301,045
Federal funds purchased and securities sold
under agreements to repurchase	57,131				71,315				62,893				88,048				93,452				69,766				89,157
FHLB short-term borrowings	660,859				808,842				812,588				760,673				602,720				760,599				791,300
Total short-term borrowings	717,990				880,157				875,481				848,721				696,172				830,365				880,457
Long-term debt	124,221				119,661				119,651				119,605				119,756				120,794				119,622
Total borrowed funds	842,211				999,818				995,132				968,326				815,928				951,159				1,000,079
Accrued interest and other liabilities	129,911				128,645				128,007				127,667				123,264				128,564				105,795
Total Liabilities	7,811,762				7,808,860				7,693,357				7,537,856				7,496,403				7,713,972				7,406,919
SHAREHOLDERS' EQUITY
Common stock	572,392				570,216				568,654				570,058				569,779				570,336				569,055
Retained earnings	483,554				470,591				456,648				442,104				430,402				463,358				413,277
Accumulated other comprehensive loss	(21,740)				(19,940)				(23,414)				(27,569)				(22,436)				(23,141)				(22,040)
Treasury stock, at cost	(114,012)				(112,810)				(112,284)				(113,378)				(114,236)				(113,122)				(115,508)
Total Shareholders' Equity	920,194				908,057				889,604				871,215				863,509				897,431				844,784
Total Liabilities and Shareholders' Equity	$	8,731,956			$	8,716,917			$	8,582,961			$	8,409,071			$	8,359,912			$	8,611,403			$	8,251,703

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
(Dollars in thousands)
(Unaudited)
		Quarterly Averages																					Year-to-Date Averages
		December 31, 2017							September 30, 2017							December 31, 2016							December 31, 2017							December 31, 2016
		Balance				Yield			Balance				Yield			Balance				Yield			Balance				Yield			Balance				Yield
Earning assets
Investments:
Investment securities		$	2,020,040			2.90	%		$	2,041,785			2.85	%		$	1,816,944			2.58	%		$	2,001,387			2.82	%		$	1,858,878			2.56	%
Interest-bearing deposits with other banks		25,357				1.41	%		37,199				1.28	%		19,557				0.59	%		30,933				1.12	%		21,907				(4.81)	%
Gross loans (1)		5,959,703				4.90	%		5,910,985				4.71	%		5,793,647				4.57	%		5,855,398				4.72	%		5,643,448				4.60	%
Total earning assets		8,005,100				4.39	%		7,989,969				4.22	%		7,630,148				4.09	%		7,887,718				4.22	%		7,524,233				4.07	%
Nonearning assets
Allowance for loan and lease losses		(55,279)							(55,326)							(58,733)							(56,599)							(56,860)
Cash and due from banks		121,792							111,984							122,130							116,409							119,444
Accrued interest and other assets		660,343							670,290							666,367							663,875							664,886
Total assets		$	8,731,956						$	8,716,917						$	8,359,912						$	8,611,403						$	8,251,703
Interest-bearing liabilities
Deposits:
Interest-bearing demand		$	1,502,245			0.34	%		$	1,494,367			0.33	%		$	1,540,755			0.14	%		$	1,491,114			0.28	%		$	1,465,804			0.14	%
Savings		2,518,771				0.63	%		2,494,592				0.82	%		2,093,557				0.31	%		2,412,788				0.66	%		2,022,564				0.27	%
Time		1,181,396				1.33	%		1,181,406				1.32	%		1,378,301				1.11	%		1,189,963				1.26	%		1,355,875				1.10	%
Total interest-bearing deposits		5,202,412				0.70	%		5,170,365				0.79	%		5,012,613				0.48	%		5,093,865				0.69	%		4,844,243				0.47	%
Borrowed funds
Short-term borrowings		717,990				1.18	%		880,157				1.16	%		696,172				0.52	%		830,365				0.99	%		880,457				0.51	%
Long-term debt		124,221				4.91	%		119,661				5.10	%		119,756				5.10	%		120,794				5.09	%		119,622				5.15	%
Total borrowed funds		842,211				1.73	%		999,818				1.63	%		815,928				1.19	%		951,159				1.51	%		1,000,079				1.07	%
Total interest-bearing liabilities		6,044,623				0.85	%		6,170,183				0.93	%		5,828,541				0.58	%		6,045,024				0.82	%		5,844,322				0.57	%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits		1,637,228							1,510,032							1,544,598							1,540,384							1,456,802
Other liabilities		129,911							128,645							123,264							128,564							105,795
Shareholders' equity		920,194							908,057							863,509							897,431							844,784
Total liabilities & shareholders' equity		$	8,731,956						$	8,716,917						$	8,359,912						$	8,611,403						$	8,251,703
Net interest income		$	75,614						$	70,479						$	70,166						$	283,545						$	272,671
Net interest spread						3.54	%						3.29	%						3.51	%						3.40	%						3.50	%
Net interest margin						3.75	%						3.50	%						3.66	%						3.59	%						3.62	%
Tax equivalent adjustment						0.07	%						0.07	%						0.05	%						0.07	%						0.06	%
Net interest margin (fully tax equivalent)						3.82	%						3.57	%						3.71	%						3.66	%						3.68	%
(1) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
		Linked Qtr. Income Variance												Comparable Qtr. Income Variance												Year-to-Date Income Variance
		Rate				Volume				Total				Rate				Volume				Total				Rate				Volume				Total
Earning assets
Investment securities		$	255			$	(159)			$	96			$	1,465			$	1,486			$	2,951			$	4,826			$	4,022			$	8,848
Interest-bearing deposits with other banks		12				(42)				(30)				40				21				61				1,299				101				1,400
Gross loans (2)		2,952				602				3,554				4,826				2,053				6,879				6,876				9,999				16,875
Total earning assets		3,219				401				3,620				6,331				3,560				9,891				13,001				14,122				27,123
Interest-bearing liabilities
Total interest-bearing deposits		$	(1,149)			$	57			$	(1,092)			$	2,880			$	337			$	3,217			$	10,845			$	1,724			$	12,569
Borrowed funds
Short-term borrowings		62				(484)				(422)				1,164				65				1,229				4,181				(494)				3,687
Long-term debt		(57)				56				(1)				(58)				55				(3)				(67)				60				(7)
Total borrowed funds		5				(428)				(423)				1,106				120				1,226				4,114				(434)				3,680
Total interest-bearing liabilities		(1,144)				(371)				(1,515)				3,986				457				4,443				14,959				1,290				16,249
Net interest income (1)		$	4,363			$	772			$	5,135			$	2,345			$	3,103			$	5,448			$	(1,958)			$	12,832			$	10,874
(1) Not tax equivalent.
(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Full Year				Full Year
	2017				2017				2017				2017				2016				2017				2016
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	54,534			$	54,873			$	56,326			$	57,961			$	57,618			$	57,961			$	53,398
Provision for loan and lease losses	(205)				2,953				467				367				2,761				3,582				10,140
Gross charge-offs
Commercial and industrial	1,264				4,122				3,065				1,743				1,590				10,194				2,630
Lease financing	0				0				0				0				0				0				0
Construction real estate	1				0				0				0				(2)				1				93
Commercial real estate	10				58				485				485				990				1,038				4,983
Residential real estate	128				23				223				61				224				435				387
Home equity	278				71				384				180				232				913				1,445
Installment	26				24				126				49				60				225				386
Credit card	209				201				215				232				326				857				1,190
Total gross charge-offs	1,916				4,499				4,498				2,750				3,420				13,663				11,114
Recoveries
Commercial and industrial	370				325				693				262				186				1,650				1,155
Lease financing	0				0				1				0				0				1				1
Construction real estate	0				0				89				0				51				89				285
Commercial real estate	480				585				1,398				256				382				2,719				2,502
Residential real estate	77				70				59				9				54				215				236
Home equity	589				110				222				106				144				1,027				720
Installment	46				74				43				71				118				234				335
Credit card	46				43				73				44				67				206				303
Total recoveries	1,608				1,207				2,578				748				1,002				6,141				5,537
Total net charge-offs	308				3,292				1,920				2,002				2,418				7,522				5,577
Ending allowance for loan and lease losses	$	54,021			$	54,534			$	54,873			$	56,326			$	57,961			$	54,021			$	57,961
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial and industrial	0.19		%		0.82		%		0.53		%		0.34		%		0.32		%		0.47		%		0.08		%
Lease financing	0.00		%		0.00		%		0.00		%		0.00		%		0.00		%		0.00		%		0.00		%
Construction real estate	0.00		%		0.00		%		(0.08)		%		0.00		%		(0.06)		%		(0.02)		%		(0.05)		%
Commercial real estate	(0.07)		%		(0.08)		%		(0.15)		%		0.04		%		0.10		%		(0.07)		%		0.11		%
Residential real estate	0.04		%		(0.04)		%		0.13		%		0.04		%		0.13		%		0.05		%		0.03		%
Home equity	(0.25)		%		(0.03)		%		0.14		%		0.07		%		0.08		%		(0.02)		%		0.16		%
Installment	(0.19)		%		(0.43)		%		0.65		%		(0.18)		%		(0.47)		%		(0.02)		%		0.11		%
Credit card	1.39		%		1.39		%		1.28		%		1.73		%		2.35		%		1.44		%		2.10		%
Total net charge-offs	0.02		%		0.22		%		0.13		%		0.14		%		0.17		%		0.13		%		0.10		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial and industrial	$	5,229			$	9,026			$	15,099			$	9,249			$	2,419			$	5,229			$	2,419
Lease financing	82				87				94				102				195				82				195
Construction real estate	29				824				1,075				1,075				0				29				0
Commercial real estate	10,616				12,244				12,617				14,324				6,098				10,616				6,098
Residential real estate	4,140				4,333				4,442				4,520				5,251				4,140				5,251
Home equity	3,743				3,364				2,937				3,571				3,400				3,743				3,400
Installment	243				240				307				322				367				243				367
Nonaccrual loans	24,082				30,118				36,571				33,163				17,730				24,082				17,730
Accruing troubled debt restructurings (TDRs)	17,545				19,692				20,135				29,948				30,240				17,545				30,240
Total nonperforming loans	41,627				49,810				56,706				63,111				47,970				41,627				47,970
Other real estate owned (OREO)	2,781				3,116				5,961				5,300				6,284				2,781				6,284
Total nonperforming assets	44,408				52,926				62,667				68,411				54,254				44,408				54,254
Accruing loans past due 90 days or more	61				84				124				96				142				61				142
Total underperforming assets	$	44,469			$	53,010			$	62,791			$	68,507			$	54,396			$	44,469			$	54,396
Total classified assets	$	87,293			$	94,320			$	98,391			$	114,550			$	125,155			$	87,293			$	125,155
CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans	224.32		%		181.07		%		150.05		%		169.85		%		326.91		%		224.32		%		326.91		%
Nonperforming loans	129.77		%		109.48		%		96.77		%		89.25		%		120.83		%		129.77		%		120.83		%
Total ending loans	0.90		%		0.91		%		0.93		%		0.98		%		1.01		%		0.90		%		1.01		%
Nonperforming loans to total loans	0.69		%		0.83		%		0.97		%		1.10		%		0.83		%		0.69		%		0.83		%
Nonperforming assets to
Ending loans, plus OREO	0.74		%		0.89		%		1.07		%		1.19		%		0.94		%		0.74		%		0.94		%
Total assets	0.50		%		0.60		%		0.72		%		0.80		%		0.64		%		0.50		%		0.64		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.45		%		0.56		%		0.72		%		0.67		%		0.42		%		0.45		%		0.42		%
Total assets	0.30		%		0.38		%		0.49		%		0.45		%		0.28		%		0.30		%		0.28		%
Classified assets to total assets	0.98		%		1.08		%		1.13		%		1.34		%		1.48		%		0.98		%		1.48		%
(1) Nonaccrual loans include nonaccrual TDRs of $5.5 million, $9.1 million, $9.4 million, $7.8 million, and $5.1 million, as of December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																					Twelve months ended,
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Dec. 31,				Dec. 31,
	2017				2017				2017				2017				2016				2017				2016
PER COMMON SHARE
Market Price
High	$	29.15			$	28.50			$	28.95			$	28.90			$	29.35			$	29.15			$	29.35
Low	$	25.30			$	23.10			$	25.05			$	26.00			$	21.05			$	23.10			$	14.91
Close	$	26.35			$	26.15			$	27.70			$	27.45			$	28.45			$	26.35			$	28.45
Average shares outstanding - basic	61,595,629				61,577,619				61,543,478				61,398,414				61,311,068				61,529,460				61,206,093
Average shares outstanding - diluted	62,131,840				62,189,637				62,234,022				62,140,384				62,080,683				62,171,590				61,985,422
Ending shares outstanding	62,069,087				62,061,465				62,141,071				62,134,285				61,979,552				62,069,087				61,979,552
Total shareholders' equity	$	930,664			$	914,954			$	898,117			$	880,065			$	865,224			$	930,664			$	865,224
REGULATORY CAPITAL	Preliminary																				Preliminary
Common equity tier 1 capital	$	755,735			$	746,730			$	731,024			$	716,678			$	703,891			$	755,735			$	703,891
Common equity tier 1 capital ratio	10.59		%		10.53		%		10.54		%		10.59		%		10.46		%		10.59		%		10.46		%
Tier 1 capital	$	755,839			$	746,834			$	731,128			$	716,782			$	703,995			$	755,839			$	703,995
Tier 1 ratio	10.59		%		10.53		%		10.54		%		10.59		%		10.46		%		10.59		%		10.46		%
Total capital	$	929,148			$	920,642			$	905,222			$	892,161			$	881,158			$	929,148			$	881,158
Total capital ratio	13.02		%		12.98		%		13.05		%		13.19		%		13.10		%		13.02		%		13.10		%
Total capital in excess of minimum
requirement	$	269,245			$	264,751			$	263,580			$	266,367			$	300,804			$	269,245			$	300,804
Total risk-weighted assets	$	7,134,085			$	7,090,714			$	6,936,665			$	6,765,336			$	6,728,737			$	7,134,085			$	6,728,737
Leverage ratio	8.84		%		8.74		%		8.69		%		8.69		%		8.60		%		8.84		%		8.60		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	10.46		%		10.44		%		10.31		%		10.32		%		10.25		%		10.46		%		10.25		%
Ending tangible shareholders' equity to ending tangible assets	8.30		%		8.25		%		8.09		%		8.05		%		7.96		%		8.30		%		7.96		%
Average shareholders' equity to average assets	10.54		%		10.42		%		10.36		%		10.36		%		10.33		%		10.42		%		10.24		%
Average tangible shareholders' equity to average tangible assets	8.34		%		8.21		%		8.12		%		8.06		%		8.01		%		8.19		%		7.89		%

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SOURCE First Financial Bancorp.