First Financial Bancorp (NASDAQ:FFBC) Q4 2019 Earnings Conference Call January 24, 2020 8:30 AM ET Company Participants Scott Crawley - Corporate Controller & Principal Accounting Officer Archie Brown - President, CEO & Director James Anderson - EVP & CFO Conference Call Participants Robert Siefers - Piper Sandler & Co. Christopher McGratty - KBW Jon Arfstrom - RBC Capital Markets Operator Good day, and welcome to the First Financial Bancorp Fourth Quarter 2019 Earnings Conference Call and Webcast. [Operato ...

Part I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201%20-%20Financial%20Statements) This section presents First Financial Bancorp.'s unaudited consolidated financial statements for Q3 and YTD 2019, including balance sheets, income, comprehensive income, equity, and cash flow statements [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present the financial position of First Financial Bancorp. as of September 30, 2019 (unaudited) and December 31, 2018, with total assets growing to **$14.48 billion** from **$13.99 billion**, primarily driven by an increase in net loans and leases Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$14,480,445** | **$13,986,660** | | Net Loans and Leases | $9,007,126 | $8,767,672 | | Goodwill | $937,689 | $880,251 | | Total Deposits | $10,083,857 | $10,140,394 | | **Total Liabilities** | **$12,219,132** | **$11,908,411** | | **Total Shareholders' Equity** | **$2,261,313** | **$2,078,249** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The Consolidated Statements of Income detail the company's revenues, expenses, and profitability for the three and nine months ended September 30, 2019 and 2018, with net income for Q3 2019 at **$50.9 million**, nearly flat compared to Q3 2018, and increasing to **$149.4 million** for the nine-month period Key Income Statement Data (in thousands, except per share data) | Metric | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $121,535 | $123,485 | $365,352 | $323,276 | | Provision for Loan and Lease Losses | $5,228 | $3,238 | $25,969 | $9,276 | | Noninterest Income | $33,140 | $28,684 | $94,605 | $73,878 | | Noninterest Expenses | $86,226 | $85,415 | $249,103 | $240,458 | | **Net Income** | **$50,856** | **$50,657** | **$149,398** | **$117,581** | | **Net Earnings Per Share - Diluted** | **$0.51** | **$0.51** | **$1.51** | **$1.36** | - Cash dividends declared per share increased to **$0.23** in Q3 2019 from **$0.20** in Q3 2018, and to **$0.67** for the nine months of 2019 from **$0.58** in the prior year period[15](index=15&type=chunk) [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) These statements show the change in equity from non-owner sources, combining net income with other comprehensive income (OCI), with comprehensive income for Q3 2019 at **$61.1 million**, up from **$40.9 million** in Q3 2018, largely due to a significant positive swing in unrealized gains on debt securities Comprehensive Income Highlights (in thousands) | Metric | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $50,856 | $50,657 | $149,398 | $117,581 | | Other Comprehensive Income (Loss) | $10,257 | $(9,739) | $58,952 | $(27,415) | | **Comprehensive Income** | **$61,113** | **$40,918** | **$208,350** | **$90,166** | [Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) These statements reconcile the beginning and ending balances of shareholders' equity, detailing the impact of net income, dividends, stock transactions, and other comprehensive income, with total shareholders' equity increasing from **$2.08 billion** at the start of 2019 to **$2.26 billion** at September 30, 2019 - For the nine months ended September 30, 2019, key changes to equity included **$149.4 million** in net income, **$59.0 million** in other comprehensive income, **$66.7 million** in cash dividends, and **$27.4 million** in common stock purchases[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) These statements report the cash flows from operating, investing, and financing activities for the nine months ended September 30, 2019 and 2018, with net cash from operating activities at **$108.1 million**, investing activities using **$50.7 million**, and financing activities using **$51.1 million**, resulting in a net increase in cash Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $108,102 | $174,579 | | Net Cash used in Investing Activities | $(50,699) | $(46,923) | | Net Cash used in Financing Activities | $(51,142) | $(85,018) | | **Change in Cash and Due from Banks** | **$6,261** | **$42,638** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures that supplement the information in the primary financial statements, covering accounting policies, business combinations, and specifics on various asset, liability, and equity accounts - The company adopted ASU 2016-02 (Leases) on January 1, 2019, resulting in the recognition of a Right-of-Use (ROU) asset of **$60.2 million** and a lease liability of **$65.8 million** on the Consolidated Balance Sheet[33](index=33&type=chunk) - The company is preparing for the adoption of ASU 2016-13 (CECL) effective January 1, 2020, and estimates its allowance for loan and lease losses will increase to between **1.12%** and **1.32%** of total loans upon adoption[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - In August 2019, the company acquired Bannockburn Global Forex, LLC for approximately **$114.6 million**, resulting in **$58.0 million** of goodwill. This followed the April 2018 acquisition of MainSource Financial Group, Inc. for **$1.1 billion**, which resulted in **$675.6 million** of goodwill[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=45&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the third quarter and first nine months of 2019, covering performance drivers, financial components, asset quality, capital, liquidity, and risk management Q3 2019 Performance Highlights | Metric | Q3 2019 | Q3 2018 | | :--- | :--- | :--- | | Net Income | $50.9 million | $50.7 million | | Diluted EPS | $0.51 | $0.51 | | Return on Average Assets (ROA) | 1.41% | 1.45% | | Return on Average Equity (ROE) | 9.13% | 9.94% | - The company acquired Bannockburn Global Forex, LLC in August 2019 for **$114.6 million**, adding a capital markets trading firm specializing in foreign currency services. This follows the major acquisition of MainSource Financial Group in April 2018[203](index=203&type=chunk)[204](index=204&type=chunk) - Net interest margin on a fully tax equivalent basis decreased **16 bps** to **3.96%** in Q3 2019 compared to Q3 2018, as accretion on acquired loans moderated and funding costs increased[214](index=214&type=chunk) - Asset quality improved, with nonperforming assets declining to **0.56%** of total assets at September 30, 2019, from **0.63%** at year-end 2018[233](index=233&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section incorporates by reference the 'Market Risk' discussion from the MD&A, detailing the company's exposure to interest rate risk and its management strategies, including income simulation and EVE sensitivity analyses - The company's interest rate risk profile as of September 30, 2019, was asset sensitive. A **+100 basis point** parallel shock in interest rates was projected to increase Net Interest Income (NII) by **3.96%** in the first year and increase Economic Value of Equity (EVE) by **3.78%**[291](index=291&type=chunk)[292](index=292&type=chunk) - The primary source of market risk for First Financial is interest rate risk. The company monitors this risk using income simulation models and EVE sensitivity analyses, with a strategy biased toward neutrality or slight asset sensitivity[287](index=287&type=chunk)[288](index=288&type=chunk)[292](index=292&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204%20-%20Controls%20and%20Procedures) This section addresses the effectiveness of the company's disclosure controls and procedures and any changes in internal control over financial reporting, concluding they were effective - Based on an evaluation as of September 30, 2019, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[305](index=305&type=chunk) - There were no changes to the company's internal control over financial reporting during the third quarter of 2019 that materially affected, or are reasonably likely to materially affect, these controls[306](index=306&type=chunk) Part II - OTHER INFORMATION [Legal Proceedings](index=61&type=section&id=Item%201%20-%20Legal%20Proceedings) This section reports no material changes to the legal proceedings disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2018 - The company confirms no material changes to its legal proceedings since the 2018 Form 10-K filing[309](index=309&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A%20-%20Risk%20Factors) This section states no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2018 - The company confirms no material changes to its risk factors since the 2018 Form 10-K filing[310](index=310&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchases of its own equity securities during Q3 2019, totaling **1,143,494 shares** at an average price of **$23.94** per share Issuer Purchases of Equity Securities (Q3 2019) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2019 | 76,009 | $24.95 | | August 2019 | 789,485 | $23.73 | | September 2019 | 278,000 | $24.25 | | **Total** | **1,143,494** | **$23.94** | - The repurchases were made under a plan approved in January 2019, which authorizes the repurchase of up to **5,000,000 shares** through December 31, 2021. As of September 30, 2019, **3,856,506 shares** remained available for repurchase[269](index=269&type=chunk)[316](index=316&type=chunk) [Exhibits](index=63&type=section&id=Item%206%20-%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including merger agreements, CEO and CFO certifications, and XBRL formatted financial statements - Exhibits filed include agreements related to the Bannockburn Global Forex, LLC acquisition, CEO/CFO certifications, and XBRL data files[318](index=318&type=chunk) [Signatures](index=64&type=section&id=Signatures) This section contains the formal signatures of the company's authorized officers, certifying the report on November 7, 2019 - The report was duly signed on November 7, 2019, by James M. Anderson (EVP & CFO) and Scott T. Crawley (Controller & Principal Accounting Officer)[323](index=323&type=chunk)

First Financial Bancorp. (NASDAQ:FFBC) Q3 2019 Earnings Conference Call October 18, 2019 8:30 AM ET Company Participants Scott Crawley - Principal Accounting Officer and Corporate Controller Archie Brown - President, Chief Executive Officer and Director James Anderson - Executive Vice President and Chief Financial Officer Bill Harrod - Chief Credit Officer Conference Call Participants Scott Siefers - Sandler O'Neill & Partners LP Christopher McGratty - Keefe Bruyette & Woods Inc. Terry McEvoy - Stephens Inc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission file number 001-34762 FIRST FINANCIAL BANCORP /OH/ | --- | --- | --- | --- | --- | |------------------------- ...

First Financial Bancorp (NASDAQ:FFBC) Q2 2019 Results Earnings Conference Call July 19, 2019 8:30 AM ET Company Participants Scott Crawley - Corporate Controller and Principal Accounting Officer Claude Davis - Executive Chairman Archie Brown - President and Chief Executive Officer James Anderson - EVP and Chief Financial Officer Conference Call Participants Scott Siefers - Sandler O'Neill & Partners LP Christopher McGratty - Keefe Bruyette & Woods Inc. Terry McEvoy - Stephens Inc. Nathan Race - Piper Jaffra ...

Earnings Presentation Second Quarter 2019 Forward Looking Statement Disclosure 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. 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 state ...

Part I - FINANCIAL INFORMATION [Item 1 - Financial Statements](index=4&type=section&id=Item%201%20-%20Financial%20Statements) The company presents its unaudited consolidated balance sheets, income statements, and cash flows as of March 31, 2019 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew slightly to $14.07 billion, driven by an increase in investment securities available-for-sale Consolidated Balance Sheet Summary (in thousands) | Metric | March 31, 2019 (Unaudited) | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$14,074,263** | **$13,986,660** | | Net Loans and Leases | $8,752,479 | $8,767,672 | | Goodwill | $879,727 | $880,251 | | **Total Liabilities** | **$11,943,844** | **$11,908,411** | | Total Deposits | $10,133,897 | $10,140,394 | | Total Borrowed Funds | $1,593,838 | $1,611,430 | | **Total Shareholders' Equity** | **$2,130,419** | **$2,078,249** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q1 2019 rose to $45.8 million, driven by a significant increase in net interest income post-acquisition Consolidated Income Statement Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--- | :--- | :--- | | Net Interest Income | $121,515 | $75,812 | | Provision for Loan and Lease Losses | $14,083 | $2,303 | | Noninterest Income | $26,827 | $16,938 | | Noninterest Expenses | $78,499 | $52,288 | | **Net Income** | **$45,839** | **$30,506** | | **Net Earnings Per Share - Diluted** | **$0.47** | **$0.49** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail key accounting policies, including the adoption of new lease standards and the MainSource acquisition impact - Adopted ASU 2016-02 (Leases) on January 1, 2019, resulting in the recognition of a Right-of-Use (ROU) asset of **$60.2 million** and a lease liability of **$65.8 million**[34](index=34&type=chunk) - The acquisition of MainSource Financial Group (MSFG) was completed for a total purchase consideration of **$1.1 billion**, resulting in goodwill of **$675.6 million**[177](index=177&type=chunk)[179](index=179&type=chunk) - The Allowance for Loan and Lease Losses (ALLL) was **$56.7 million**, with a Q1 2019 provision of **$14.1 million** driven by higher net charge-offs[92](index=92&type=chunk)[94](index=94&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2019 performance, focusing on the MainSource merger's impact on income, asset quality, and capital - Q1 2019 net income was **$45.8 million**, or **$0.47 per diluted share**, compared to $30.5 million, or $0.49 per diluted share, in Q1 2018, with the increase driven by the MainSource acquisition[192](index=192&type=chunk) - Net interest margin on a fully tax equivalent basis increased by **26 basis points to 4.10%** in Q1 2019 from 3.84% in Q1 2018[200](index=200&type=chunk) - Nonperforming assets decreased to **$83.9 million (0.60% of total assets)** at March 31, 2019, from $88.2 million (0.63% of total assets) at year-end 2018[216](index=216&type=chunk) - Net charge-offs were **$13.9 million** in Q1 2019, significantly higher than $1.9 million in Q1 2018, due to a **$10.0 million charge-off** on a single franchise lending relationship[262](index=262&type=chunk) [Overview of Operations and Business Combinations](index=43&type=section&id=Overview%20of%20Operations%20and%20Business%20Combinations) The company's Q1 2019 results reflect the expanded scale following the $1.1 billion acquisition of MainSource Financial Group Q1 2019 Performance Metrics | Metric | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Income | $45.8 million | $30.5 million | | Diluted EPS | $0.47 | $0.49 | | Return on Average Assets | 1.33% | 1.40% | | Return on Average Equity | 8.88% | 13.31% | - The merger with MainSource Financial Group, completed in April 2018, involved a total purchase consideration of **$1.1 billion** and significantly expanded the company's footprint[190](index=190&type=chunk) [Financial Performance Analysis](index=44&type=section&id=Financial%20Performance%20Analysis) Q1 2019 performance was marked by strong growth in net interest and noninterest income, reflecting the larger post-merger base - Net interest income increased by **$45.7 million (60.3%)** YoY, driven by a $61.4 million increase in interest income[199](index=199&type=chunk) - Noninterest income grew by **$9.9 million (58.4%)** YoY, with notable increases in service charges, bankcard income, and loan sale gains[207](index=207&type=chunk) - Noninterest expense increased by **$26.2 million** YoY, primarily due to a **$16.8 million rise** in salaries and employee benefits[208](index=208&type=chunk) - The effective tax rate for Q1 2019 was **17.8%**, down from 20.1% in Q1 2018, due to favorable state tax resolutions[209](index=209&type=chunk) [Balance Sheet Analysis](index=47&type=section&id=Balance%20Sheet%20Analysis) The balance sheet remained stable with total loans at $8.8 billion and total deposits at $10.1 billion as of quarter-end - Total loans were **$8.8 billion** at both March 31, 2019, and December 31, 2018, as an **8.4% increase** in loan production was offset by prepayments[212](index=212&type=chunk) - The investment portfolio totaled **$3.4 billion (24.1% of total assets)** at quarter-end, with $3.1 billion in available-for-sale securities[222](index=222&type=chunk) - Total deposits were stable at **$10.1 billion**, as growth in CDs offset seasonal declines in demand deposit accounts[226](index=226&type=chunk) [Liquidity and Capital](index=49&type=section&id=Liquidity%20and%20Capital) The company maintained a strong liquidity position and capital ratios well above regulatory "well-capitalized" minimums Regulatory Capital Ratios (Consolidated) - March 31, 2019 | Ratio | Actual | Minimum Required (Well-Capitalized) | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 12.03% | 7.00% (incl. buffer) | | Tier 1 Capital | 12.43% | 8.50% (incl. buffer) | | Total Capital | 14.24% | 10.50% (incl. buffer) | | Leverage Ratio | 9.84% | 4.00% | - At March 31, 2019, the company had **$219.2 million** in liquidity on hand and an additional **$3.0 billion** in unused wholesale funding capacity[237](index=237&type=chunk) - A stock repurchase plan authorizing up to **5,000,000 shares** was approved in January 2019; no shares were repurchased in Q1 2019[251](index=251&type=chunk) [Risk Management](index=52&type=section&id=Risk%20Management) Credit risk was highlighted by a large single-loan charge-off, while market risk remains moderately asset-sensitive - The ALLL was **$56.7 million**, or **0.64% of period-end loans**, as of March 31, 2019[260](index=260&type=chunk) - Q1 2019 net charge-offs were **$13.9 million**, or **0.64% of average loans**, driven by a **$10.0 million charge-off** on a single franchise lending relationship[262](index=262&type=chunk) Interest Rate Sensitivity Analysis (as of March 31, 2019) | Rate Shock Scenario | NII Change (Year 1) | EVE Change | | :--- | :--- | :--- | | -100 bps | (6.13)% | (4.55)% | | +100 bps | 3.63% | 2.20% | | +200 bps | 6.24% | 3.66% | [Item 3 - Quantitative and Qualitative Disclosures about Market Risk](index=57&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section incorporates by reference the market risk disclosures provided within the MD&A section - The report refers to the 'Market Risk' section within the MD&A for its quantitative and qualitative disclosures on this topic[282](index=282&type=chunk) [Item 4 - Controls and Procedures](index=57&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[285](index=285&type=chunk) - **No material changes** were made to internal controls over financial reporting during the first quarter of 2019[286](index=286&type=chunk) Part II - OTHER INFORMATION [Item 1 - Legal Proceedings](index=58&type=section&id=Item%201%20-%20Legal%20Proceedings) There have been no material changes to legal proceedings since the company's 2018 Annual Report on Form 10-K - The company reports **no material changes** to its legal proceedings since its 2018 Form 10-K filing[289](index=289&type=chunk) [Item 1A - Risk Factors](index=58&type=section&id=Item%201A%20-%20Risk%20Factors) There have been no material changes to risk factors since the company's 2018 Annual Report on Form 10-K - The company refers to the Risk Factors section of its 2018 Form 10-K, indicating **no material changes**[290](index=290&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the public plan in Q1 2019, following the approval of a new 5 million share authorization - A new stock repurchase plan was announced on January 14, 2019, authorizing the repurchase of up to **5,000,000 shares**[295](index=295&type=chunk) - **No shares were repurchased** under the publicly announced plan during the first quarter of 2019[294](index=294&type=chunk) [Item 6 - Exhibits](index=60&type=section&id=Item%206%20-%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required CEO and CFO certifications

Financial Data and Key Metrics Changes - Adjusted earnings for Q1 2019 were $0.48 per share, with a return on average assets of 1.38% and a return on average tangible common equity of 16.45% [7][16] - The efficiency ratio was reported at sub 52% when adjusted for merger-related items, reflecting disciplined expense management [7][10] - Net interest margin on a fully tax equivalent basis declined by 11 basis points to 4.10% due to fewer loan fees and expected declines in purchase accounting accretion [17][24] Business Line Data and Key Metrics Changes - Loan origination activity increased by 8% over the linked quarter, reaching its highest level since the merger, with notable growth in investment and commercial real estate business lines [19][26] - The loan portfolio growth was offset by continued payoff headwinds within the commercial construction portfolio [8] - Average deposit balances increased by $18 million, driven by retail and brokerage CD growth, despite seasonal declines in public funds and business DDA [20][27] Market Data and Key Metrics Changes - The yield on securities increased by 14 basis points, while loan yields declined by 4 basis points, and the cost of deposits increased by 10 basis points [18][25] - Credit quality metrics were negatively impacted by an isolated franchise charge-off, resulting in net charge-offs of 64 basis points as a percentage of total loans [21][28] Company Strategy and Development Direction - The company aims for low to mid single-digit loan growth for Q2 2019, with long-term targets of mid to high single-digit growth [32][36] - The management is focused on strategic acquisitions, particularly in fee-based businesses, while also evaluating capital strategies to support planned growth [36][63] - The company remains optimistic about future growth potentials, despite recent challenges in loan growth expectations [32][41] Management's Comments on Operating Environment and Future Outlook - Management expressed a stable near-term credit outlook and anticipated a rebound in fee income in the range of $29 million to $31 million for the next quarter [34][54] - The company expects expenses to increase slightly, with an efficiency ratio projected in the 50% to 52% range for the next quarter [35][36] - Management acknowledged the need for quicker action when signs of stress appear in long-term borrower relationships, emphasizing a more proactive approach [51] Other Important Information - The company reported a 10-year history in lending to quick-serve restaurant franchisees, with a granular franchise portfolio averaging $3.4 million per relationship [11][12] - Capital ratios continued to expand and remain above stated targets, with a tangible common equity of $1.1 billion [31][29] Q&A Session Summary Question: Loan growth visibility and acceleration - Management noted an 8% increase in commitments, with significant growth in commercial banking and investment real estate commitments, indicating positive momentum [40][41] Question: Core margin pressures - The primary driver of margin pressure is on the funding side, with deposit costs expected to increase slightly [43][44] Question: Franchise charge-off review process - Management emphasized the need for quicker action when signs of borrower stress appear, learning from the recent franchise charge-off experience [51] Question: Provision outlook - Management indicated that provisions would return to pre-first quarter levels, covering charge-offs and supporting growth [54] Question: Capital management and buyback strategy - Management discussed timing issues regarding share buybacks and indicated a willingness to consider buybacks depending on stock price levels [60][61] Question: Strategic acquisitions - Management is open to considering smaller acquisitions that add strategic value, particularly in adjacent markets [63]

Earnings Presentation First Quarter 2019 Forward Looking Statement Disclosure 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. 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 statem ...

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES ACT OF 1934 Commission File Number 001-34762 FIRST FINANCIAL BANCORP. (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | --- | --- | |--------------------------------- ...