First Financial Bancorp. (FFBC) has reported a 23.22 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $24.41 million, or $0.39 a share in the quarter, compared with $19.81 million, or $0.32 a share for the same period last year.
Revenue during the quarter grew 6.86 percent to $85.93 million from $80.41 million in the previous year period. Net interest income for the quarter rose 3.57 percent over the prior year period to $68.93 million. Non-interest income for the quarter rose 11.94 percent over the last year period to $17.36 million.
First Financial Bancorp. has made provision of $0.37 million for loan losses during the quarter, down 77.82 percent from $1.66 million in the same period last year.
Net interest margin improved 1 basis points to 3.63 percent in the quarter from 3.62 percent in the last year period.
Claude Davis, chief executive officer, commented, "We are pleased to report strong earnings for the first quarter of 2017, which was our 106th consecutive quarter of profitability. Our proactive approach to managing the balance sheet resulted in higher investment income, which combined with higher fee income, lower credit costs and the tax benefit related to new accounting guidance to offset the earnings impact from softer loan demand. Capital ratios improved during the period and we continue to evaluate and implement strategic initiatives aimed at growing fee income and efficiently managing our expenses."
Assets outpace liabilities growth
Total assets stood at $8,531.17 million as on Mar. 31, 2017, up 4.12 percent compared with $8,193.55 million on Mar. 31, 2016. On the other hand, total liabilities stood at $7,651.10 million as on Mar. 31, 2017, up 3.86 percent from $7,366.97 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $5,697.76 million as on Mar. 31, 2017, up 4.53 percent compared with $5,450.88 million on Mar. 31, 2016. Deposits stood at $6,529.88 million as on Mar. 31, 2017, up 5.72 percent compared with $6,176.78 million on Mar. 31, 2016.
Noninterest-bearing deposit liabilities were $1,547.60 million or 23.70 percent of total deposits on Mar. 31, 2017, compared with $1,408.61 million or 22.80 percent of total deposits on Mar. 31, 2016.
Investments stood at $2,001.84 million as on Mar. 31, 2017, up 4.27 percent or $81.95 million from year-ago. Shareholders equity stood at $880.06 million as on Mar. 31, 2017, up 6.47 percent or $53.48 million from year-ago.
Return on average assets moved up 20 basis points to 1.18 percent in the quarter from 0.98 percent in the last year period. At the same time, return on average equity increased 166 basis points to 11.36 percent in the quarter from 9.70 percent in the last year period.
Credit quality deteriorates
First Financial Bancorp. witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 6.77 percent or $4.34 million to $68.41 million on Mar. 31, 2017 from $64.07 million on Mar. 31, 2016. Nonperforming assets to total loans was 1.19 percent in the quarter, up from 1.16 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.80 percent in the quarter, up from 0.78 percent in the last year period.
Equity to assets ratio was 10.32 percent for the quarter, up from 10.09 percent for the previous year quarter. Average equity to average assets ratio was 10.36 percent for the quarter, up from 10.12 percent for the previous year quarter. Book value per share was $14.16 for the quarter, up 5.99 percent or $0.80 compared to $13.36 for the same period last year.
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