First Financial Bancorp Announces Second Quarter 2024 Financial Results and Quarterly Dividend Increase

Core Viewpoint - The company reported a decline in net charge-offs and an increase in the allowance for credit losses (ACL), while also announcing a dividend increase, reflecting positive operating performance in the first half of 2024 [1][2]. Financial Performance - Net charge-offs decreased by 23 basis points to 15 basis points, marking the third consecutive quarter of decline [1]. - The ACL increased to 1.36% of total loans, with expectations for provisions to decline in future periods [1]. - Total interest income for the three months ended June 30, 2024, was $252.719 million, a 12.9% increase from $223.895 million in the same period of 2023 [3]. - Net interest income for the same period was $153.311 million, a decrease of 3.7% compared to $159.232 million in the previous year [3]. - Provision for credit losses on loans and leases increased by 27.0% to $16.157 million compared to $12.719 million in the prior year [3]. Dividend Announcement - The Board of Directors approved a $0.01 increase in the common dividend to $0.24, resulting in a 4.3% increase and a payout ratio within the target range of 35% - 40% of net income [1]. Asset Quality - Nonperforming loans as a percentage of total assets remained relatively flat compared to the prior quarter, indicating stable asset quality [1]. - The company had $18.2 billion in assets, $11.5 billion in loans, and $13.7 billion in deposits as of June 30, 2024 [2]. Business Operations - The company operates through six lines of business, including Commercial, Retail Banking, and Wealth Management, with approximately $3.6 billion in assets under management as of June 30, 2024 [2].