First Financial Bancorp Announces Third Quarter 2024 Financial Results and Quarterly Dividend
Earnings per diluted share of $0.55; $0.67 on an adjusted(1) basis
Return on average assets of 1.17%; 1.42% on an adjusted(1) basis
Net interest margin on FTE basis(1) of 4.08%
Noninterest income of $45.7 million; $58.8 million on an adjusted(1) basis
Average deposit growth of $166.2 million; 4.9% on an annualized basis
1.37% ACL ratio to total loans; Net charge-offs 0.25% of total loans
Tangible book value increased 10.2% from linked quarter to $14.26
Board of Directors approved quarterly dividend of $0.24
CINCINNATI, Oct. 24, 2024 /PRNewswire/ -- First Financial Bancorp. (NASDAQ:FFBC) ("First Financial" or the "Company") announced financial results for the three and nine months ended September 30, 2024.
For the three months ended September 30, 2024, the Company reported net income of $52.5 million, or $0.55 per diluted common share. These results compare to net income of $60.8 million, or $0.64 per diluted common share, for the second quarter of 2024. For the nine months ended September 30, 2024, First Financial had earnings per diluted share of $1.74 compared to $2.12 for the same period in 2023.
Return on average assets for the third quarter of 2024 was 1.17% while return on average tangible common equity was 16.29%(1). These compare to return on average assets of 1.38% and return on average tangible common equity of 20.57%(1) in the second quarter of 2024.
Third quarter 2024 highlights include:
Net interest margin of 4.05%, or 4.08% on a fully tax-equivalent basis(1)
2 bp decline from second quarter, better than initial expectations
Slight increase in cost of deposits offset by favorable shift in funding mix; Asset yields flat compared to prior quarter
Noninterest income of $45.7 million, or $58.8 million as adjusted(1)
Adjustments include:
$17.5 million loss on securities; includes $9.7 million of impairment losses and $8.0 million loss on sales from restructuring activities
$4.4 million deferred tax gain
Strong results from foreign exchange, wealth management, and leasing businesses
Noninterest expenses of $125.8 million, or $124.7 million as adjusted(1); 1.8% increase from linked quarter
Third quarter adjustments(1) include $0.4 million of efficiency related costs and $0.7 million of other costs such as acquisition, severance and branch consolidation costs
Increase driven by $1.8 million increase in leasing business expenses and $0.5 million supplemental contribution to the First Financial Foundation
Efficiency ratio of 62.5%; 58.2% as adjusted(1)
Modest loan growth during the quarter
Loan balances increased $31.9 million compared to the linked quarter; 1% annualized growth
Growth driven by leasing and mortgage
Payoffs increased 27% compared to the linked quarter
_________________________________________________________________________________________
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Strong average deposit growth during the quarter
Average deposits increased $166.2 million, or 4.9% on an annualized basis
Growth in money market accounts, retail CDs and brokered CDs offset seasonal decline in public funds and modest declines in noninterest bearing checking and savings accounts
Total Allowance for Credit Losses of $176.0 million; Total quarterly provision expense of $10.6 million
Loans and leases - ACL of $158.8 million; ratio to total loans of 1.37% increased 1 bp from second quarter
Unfunded Commitments - ACL of $17.1 million
Provision expense driven by net charge offs and slower prepayment rates; Classified assets 1.14% of total assets
Annualized net charge-offs were 25 bps of total loans
Capital ratios stable and strong
Total capital ratio increased 11 bps to 14.58%
Tier 1 common equity increased 26 bps to 12.04%
Tangible common equity of 7.98%(1); 9.34%(1) excluding impact from AOCI
Tangible book value per share of $14.26(1); 10.2% increase from linked quarter
Additionally, the board of directors approved a quarterly dividend of $0.24 per common share for the next regularly scheduled dividend, payable on December 16, 2024 to shareholders of record as of December 2, 2024.
Archie Brown, President and CEO, commented on third quarter results, "Third quarter financial results reflect our ongoing commitment to industry leading performance. Adjusted(1) earnings per share were $0.67, which resulted in an adjusted(1) return on assets of 1.42% and an adjusted(1) return on tangible common equity of 19.77%.
We are particularly pleased with our 4.08% net interest margin. With only a 2 bp decline from the second quarter, the margin has proven to be more durable than expected due to high asset yields from Agile, investment portfolio restructuring and moderating funding costs.
Average deposit balances grew 4.9% on an annualized basis, as declines in our low cost products moderated. Consistent with our expectations, loan growth slowed during the third quarter as softer pipelines in the second quarter led to fewer fundings in the current period. Loan growth was also impacted by higher payoffs in our commercial banking and investment commercial real estate portfolios. Loan pipelines strengthened during the third quarter, and we expect higher growth rates as we close out the year."
Mr. Brown continued, "Third quarter noninterest income was $45.7 million, or $58.8 million on an adjusted(1) basis, with strong earnings from foreign exchange, wealth management and the leasing business. There were several large non-recurring items that impacted noninterest income, including $17.5 million of losses on securities, which included a $9.7 million impairment charge on two bonds secured by skilled nursing homes. While third quarter noninterest income was noisy, noninterest expenses were relatively flat compared to the prior quarter. We remain diligent in managing our expenses, and our workforce efficiency initiative has resulted in the elimination of 120 positions to date, with additional savings expected into 2025."
Mr. Brown commented on asset quality and capital, "Asset quality was stable for the quarter and our ACL increased to 1.37% of total loans. Additionally, third quarter net charge-offs were 25 bps on an annualized basis and nonperforming assets as a percent of assets increased 1 bp to 36 bps. We are optimistic about asset quality and are confident in our ability to manage the portfolio through the expected interest rate reductions and economic uncertainty in the near-term.
With regard to capital, strong earnings and the decline in interest rates led to significant improvement in tangible book value per share and tangible common equity. Tangible book value per share increased 10% from the linked quarter and over 30% from the same quarter last year to $14.26, while tangible common equity increased 75 basis points from June 30 to 7.98% as of the end of September."
Mr. Brown concluded, "We are very proud of our financial results in the first nine months of 2024. Overall, the economy remains healthy, and the general easing of interest rates should extend economic growth in the coming periods. We believe we are in a strong position to finish the year on a high note and head into 2025 with continued momentum."
Full detail of the Company's third quarter 2024 performance is provided in the accompanying financial statements and slide presentation.
Teleconference / Webcast InformationFirst Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, October 25, 2024 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (888) 550-5723 (U.S. toll free) or (646) 960-0471 (U.S. local), access code 5048068. The number should be dialed five to ten minutes prior to the start of the conference call. A replay of the conference call will be available beginning one hour after the completion of the live call at (800) 770-2030 (U.S. toll free), (609) 800-9099 (U.S. toll), access code 5048068. The recording will be available until November 8, 2024. 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. The webcast will be archived on the Investor Relations section of the Company's website for 12 months.
Press Release and Additional Information on WebsiteThis press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.
Use of Non-GAAP Financial MeasuresThis earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Forward-Looking Statements
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 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 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:
economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses
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;
Management's ability to effectively execute its business plans;
mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
the effect of changes in accounting policies and practices;
changes in consumer spending, borrowing and saving and changes in unemployment;
changes in customers' performance and creditworthiness;
the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;
our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
our ability to develop and execute effective business plans and strategies.
Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2023, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
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, the Company does not assume any obligation to update any forward-looking statement.
About First Financial Bancorp.First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of September 30, 2024, the Company had $18.1 billion in assets, $11.6 billion in loans, $13.9 billion in deposits and $2.5 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $3.8 billion in assets under management as of September 30, 2024. The Company operated 128 full service banking centers as of September 30, 2024, located in Ohio, Indiana, Kentucky and Illinois, 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.
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended,
Nine months ended,
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
Sep. 30,
2024
2024
2024
2023
2023
2024
2023
RESULTS OF OPERATIONS
Net income
$ 52,451
$ 60,805
$ 50,689
$ 56,732
$ 63,061
$ 163,945
$ 199,131
Net earnings per share - basic
$ 0.56
$ 0.64
$ 0.54
$ 0.60
$ 0.67
$ 1.74
$ 2.12
Net earnings per share - diluted
$ 0.55
$ 0.64
$ 0.53
$ 0.60
$ 0.66
$ 1.72
$ 2.09
Dividends declared per share
$ 0.24
$ 0.23
$ 0.23
$ 0.23
$ 0.23
$ 0.70
$ 0.69
KEY FINANCIAL RATIOS
Return on average assets
1.17 %
1.38 %
1.18 %
1.31 %
1.48 %
1.24 %
1.57 %
Return on average shareholders' equity
8.80 %
10.72 %
9.00 %
10.50 %
11.62 %
9.50 %
12.53 %
Return on average tangible shareholders' equity (1)
16.29 %
20.57 %
17.35 %
21.36 %
23.60 %
18.02 %
25.87 %
Net interest margin
4.05 %
4.06 %
4.05 %
4.21 %
4.28 %
4.05 %
4.41 %
Net interest margin (fully tax equivalent) (1)(2)
4.08 %
4.10 %
4.10 %
4.26 %
4.33 %
4.09 %
4.45 %
Ending shareholders' equity as a percent of ending assets
13.50 %
12.81 %
12.99 %
12.94 %
12.49 %
13.50 %
12.49 %
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (1)
7.98 %
7.23 %
7.23 %
7.17 %
6.50 %
7.98 %
6.50 %
Risk-weighted assets (1)
9.87 %
8.95 %
8.80 %
8.81 %
7.88 %
9.87 %
7.88 %
Average shareholders' equity as a percent of average assets
13.28 %
12.87 %
13.09 %
12.52 %
12.70 %
13.08 %
12.53 %
Average tangible shareholders' equity as a percent of average tangible assets (1)
7.64 %
7.15 %
7.25 %
6.57 %
6.69 %
7.35 %
6.49 %
Book value per share
$ 25.66
$ 24.36
$ 23.95
$ 23.84
$ 22.39
$ 25.66
$ 22.39
Tangible book value per share (1)
$ 14.26
$ 12.94
$ 12.50
$ 12.38
$ 10.91
$ 14.26
$ 10.91
Common equity tier 1 ratio (3)
12.04 %
11.78 %
11.67 %
11.73 %
11.60 %
12.04 %
11.60 %
Tier 1 ratio (3)
12.37 %
12.11 %
12.00 %
12.06 %
11.94 %
12.37 %
11.94 %
Total capital ratio (3)
14.58 %
14.47 %
14.31 %
14.26 %
14.19 %
14.58 %
14.19 %
Leverage ratio (3)
9.93 %
9.73 %
9.75 %
9.70 %
9.59 %
9.93 %
9.59 %
AVERAGE BALANCE SHEET ITEMS
Loans (4)
$ 11,534,000
$ 11,440,930
$ 11,066,184
$ 10,751,028
$ 10,623,734
$ 11,347,720
$ 10,504,431
Investment securities
3,274,498
3,131,541
3,137,665
3,184,408
3,394,237
3,181,575
3,529,119
Interest-bearing deposits with other banks
483,880
599,348
553,654
548,153
386,173
545,402
344,844
Total earning assets
$ 15,292,378
$ 15,171,819
$ 14,757,503
$ 14,483,589
$ 14,404,144
$ 15,074,697
$ 14,378,394
Total assets
$ 17,854,191
$ 17,728,251
$ 17,306,221
$ 17,124,955
$ 16,951,389
$ 17,630,374
$ 16,954,178
Noninterest-bearing deposits
$ 3,106,239
$ 3,144,198
$ 3,169,750
$ 3,368,024
$ 3,493,305
$ 3,139,939
$ 3,702,189
Interest-bearing deposits
10,690,265
10,486,068
10,109,416
9,834,819
9,293,860
10,429,538
9,068,783
Total deposits
$ 13,796,504
$ 13,630,266
$ 13,279,166
$ 13,202,843
$ 12,787,165
$ 13,569,477
$ 12,770,972
Borrowings
$ 1,053,737
$ 1,171,246
$ 1,139,014
$ 1,083,954
$ 1,403,071
$ 1,121,086
$ 1,453,588
Shareholders' equity
$ 2,371,125
$ 2,281,040
$ 2,265,562
$ 2,144,482
$ 2,153,601
$ 2,306,147
$ 2,124,787
CREDIT QUALITY RATIOS
Allowance to ending loans
1.37 %
1.36 %
1.29 %
1.29 %
1.36 %
1.37 %
1.36 %
Allowance to nonaccrual loans
242.72 %
249.21 %
243.55 %
215.10 %
193.75 %
242.72 %
193.75 %
Nonaccrual loans to total loans
0.57 %
0.54 %
0.53 %
0.60 %
0.70 %
0.57 %
0.70 %
Nonperforming assets to ending loans, plus OREO
0.57 %
0.54 %
0.53 %
0.60 %
0.71 %
0.57 %
0.71 %
Nonperforming assets to total assets
0.36 %
0.35 %
0.34 %
0.38 %
0.44 %
0.36 %
0.44 %
Classified assets to total assets
1.14 %
1.07 %
0.92 %
0.80 %
0.82 %
1.14 %
0.82 %
Net charge-offs to average loans (annualized)
0.25 %
0.15 %
0.38 %
0.46 %
0.61 %
0.26 %
0.28 %
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% 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.
(3) September 30, 2024 regulatory capital ratios are preliminary.
(4) Includes loans held for sale.
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended,
Nine months ended,
Sep. 30,
Sep. 30,
2024
2023
% Change
2024
2023
% Change
Interest income
Loans and leases, including fees
$ 215,433
$ 192,261
12.1 %
$ 629,033
$ 546,354
15.1 %
Investment securities
Taxable
32,367
31,297
3.4 %
90,958
95,226
(4.5) %
Tax-exempt
2,616
3,522
(25.7) %
8,412
10,499
(19.9) %
Total investment securities interest
34,983
34,819
0.5 %
99,370
105,725
(6.0) %
Other earning assets
6,703
5,011
33.8 %
22,121
12,488
77.1 %
Total interest income
257,119
232,091
10.8 %
750,524
664,567
12.9 %
Interest expense
Deposits
86,554
57,069
51.7 %
245,651
132,817
85.0 %
Short-term borrowings
9,932
14,615
(32.0) %
32,270
43,101
(25.1) %
Long-term borrowings
5,073
4,952
2.4 %
14,992
14,644
2.4 %
Total interest expense
101,559
76,636
32.5 %
292,913
190,562
53.7 %
Net interest income
155,560
155,455
0.1 %
457,611
474,005
(3.5) %
Provision for credit losses-loans and leases
9,930
12,907
(23.1) %
39,506
34,270
15.3 %
Provision for credit losses-unfunded commitments
694
(1,234)
(156.2) %
(1,279)
(1,393)
(8.2) %
Net interest income after provision for credit losses
144,936
143,782
0.8 %
419,384
441,128
(4.9) %
Noninterest income
Service charges on deposit accounts
7,547
6,957
8.5 %
21,647
20,443
5.9 %
Wealth management fees
6,910
6,943
(0.5) %
20,758
19,990
3.8 %
Bankcard income
3,698
3,406
8.6 %
10,740
10,690
0.5 %
Client derivative fees
1,160
1,612
(28.0) %
3,173
4,444
(28.6) %
Foreign exchange income
12,048
13,384
(10.0) %
39,270
45,321
(13.4) %
Leasing business income
16,811
14,537
15.6 %
48,228
38,466
25.4 %
Net gains from sales of loans
5,021
4,086
22.9 %
13,284
10,260
29.5 %
Net gain (loss) on investment securities
(17,468)
(58)
N/M
(22,719)
(403)
N/M
Other
9,974
5,761
73.1 %
19,333
16,218
19.2 %
Total noninterest income
45,701
56,628
(19.3) %
153,714
165,429
(7.1) %
Noninterest expenses
Salaries and employee benefits
74,813
75,641
(1.1) %
224,075
222,094
0.9 %
Net occupancy
5,919
5,809
1.9 %
17,635
17,100
3.1 %
Furniture and equipment
3,617
3,341
8.3 %
10,951
10,020
9.3 %
Data processing
8,857
8,473
4.5 %
26,039
27,364
(4.8) %
Marketing
2,255
2,598
(13.2) %
6,822
7,560
(9.8) %
Communication
851
744
14.4 %
2,462
2,022
21.8 %
Professional services
2,303
2,524
(8.8) %
7,456
6,778
10.0 %
State intangible tax
876
981
(10.7) %
2,628
2,930
(10.3) %
FDIC assessments
3,036
2,665
13.9 %
8,473
8,297
2.1 %
Intangible amortization
2,395
2,600
(7.9) %
7,092
7,801
(9.1) %
Leasing business expense
11,899
8,877
34.0 %
31,781
23,545
35.0 %
Other
8,938
7,791
14.7 %
26,274
23,841
10.2 %
Total noninterest expenses
125,759
122,044
3.0 %
371,688
359,352
3.4 %
Income before income taxes
64,878
78,366
(17.2) %
201,410
247,205
(18.5) %
Income tax expense (benefit)
12,427
15,305
(18.8) %
37,465
48,074
(22.1) %
Net income
$ 52,451
$ 63,061
(16.8) %
$ 163,945
$ 199,131
(17.7) %
ADDITIONAL DATA
Net earnings per share - basic
$ 0.56
$ 0.67
$ 1.74
$ 2.12
Net earnings per share - diluted
$ 0.55
$ 0.66
$ 1.72
$ 2.09
Dividends declared per share
$ 0.24
$ 0.23
$ 0.70
$ 0.69
Return on average assets
1.17 %
1.48 %
1.24 %
1.57 %
Return on average shareholders' equity
8.80 %
11.62 %
9.50 %
12.53 %
Interest income
$ 257,119
$ 232,091
10.8 %
$ 750,524
$ 664,567
12.9 %
Tax equivalent adjustment
1,362
1,659
(17.9) %
4,315
4,684
(7.9) %
Interest income - tax equivalent
258,481
233,750
10.6 %
754,839
669,251
12.8 %
Interest expense
101,559
76,636
32.5 %
292,913
190,562
53.7 %
Net interest income - tax equivalent
$ 156,922
$ 157,114
(0.1) %
$ 461,926
$ 478,689
(3.5) %
Net interest margin
4.05 %
4.28 %
4.05 %
4.41 %
Net interest margin (fully tax equivalent) (1)
4.08 %
4.33 %
4.09 %
4.45 %
Full-time equivalent employees
2,084
2,121
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% 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 QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
2024
Third
Second
First
Year to
% Change
Quarter
Quarter
Quarter
Date
Linked Qtr.
Interest income
Loans and leases, including fees
$ 215,433
$ 211,760
$ 201,840
$ 629,033
1.7 %
Investment securities
Taxable
32,367
30,295
28,296
90,958
6.8 %
Tax-exempt
2,616
2,704
3,092
8,412
(3.3) %
Total investment securities interest
34,983
32,999
31,388
99,370
6.0 %
Other earning assets
6,703
7,960
7,458
22,121
(15.8) %
Total interest income
257,119
252,719
240,686
750,524
1.7 %
Interest expense
Deposits
86,554
83,022
76,075
245,651
4.3 %
Short-term borrowings
9,932
11,395
10,943
32,270
(12.8) %
Long-term borrowings
5,073
4,991
4,928
14,992
1.6 %
Total interest expense
101,559
99,408
91,946
292,913
2.2 %
Net interest income
155,560
153,311
148,740
457,611
1.5 %
Provision for credit losses-loans and leases
9,930
16,157
13,419
39,506
(38.5) %
Provision for credit losses-unfunded commitments
694
286
(2,259)
(1,279)
142.7 %
Net interest income after provision for credit losses
144,936
136,868
137,580
419,384
5.9 %
Noninterest income
Service charges on deposit accounts
7,547
7,188
6,912
21,647
5.0 %
Wealth management fees
6,910
7,172
6,676
20,758
(3.7) %
Bankcard income
3,698
3,900
3,142
10,740
(5.2) %
Client derivative fees
1,160
763
1,250
3,173
52.0 %
Foreign exchange income
12,048
16,787
10,435
39,270
(28.2) %
Leasing business income
16,811
16,828
14,589
48,228
(0.1) %
Net gains from sales of loans
5,021
4,479
3,784
13,284
12.1 %
Net gain (loss) on investment securities
(17,468)
(64)
(5,187)
(22,719)
N/M
Other
9,974
4,448
4,911
19,333
124.2 %
Total noninterest income
45,701
61,501
46,512
153,714
(25.7) %
Noninterest expenses
Salaries and employee benefits
74,813
75,225
74,037
224,075
(0.5) %
Net occupancy
5,919
5,793
5,923
17,635
2.2 %
Furniture and equipment
3,617
3,646
3,688
10,951
