First Financial Bancorp. (NASDAQ:FFBC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 24, 2020 • 08:30 am ET


First Financial Bancorp. (NASDAQ:FFBC) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the First Financial Second Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

I would now like to turn the conference over to Scott Crawley, Corporate Controller. Please go, ahead.

Scott T. Crawley

Thanks, Alyssa. Good morning, everyone, and thank you for joining us on today's conference call to discuss First Financial Bancorp's second quarter and year-to-date 2020 financial results. Participating on today's call will be Archie Brown, President and Chief Executive Officer; Jamie Anderson, Chief Financial Officer; and Bill Harrod, Chief Credit Officer.

Both the press release we issued yesterday and the accompanying slide presentation are available on our website at under the Investor Relations section. We will make reference to the slides contained in the accompanying presentation during today's call. Additionally, please refer to the forward-looking statement disclosure contained in the second quarter 2020 earnings release, as well as our SEC filings for a full discussion of the Company's risk factors. The information we provide today is accurate as of June 30th, 2020, and we will not be updating any forward-looking statements to reflect facts or circumstances after this call.

I'll now turn the call over to Archie Brown.

Archie M. Brown

Thank you, Scott. Good morning, everyone, and thank you for joining us on today's call. Yesterday afternoon, we announced our financial results for the second quarter. We were very pleased with our performance, especially when considering the unique circumstances in which we were operating related to COVID-19.

Consistent with the broader industry, our results continue to be substantially influenced by the pandemic across net interest income, fee income and most significantly provision expense. Our second quarter performance demonstrated continued strength and resilience to our businesses despite the challenging backdrop and marked our 119th consecutive quarter profitability. Highlights included adjusted earnings of $0.40 per share, a 1% return on average assets, a 13.47% return on average tangible common equity, and a 56% efficiency ratio, when adjusted to remove non-recurring items.

Second quarter was our highest core fee income quarter on record. Our mortgage division had a sensational quarter, as the hard work of our team combined with historic low interest rates to drive an almost 500% increase in mortgage banking revenue to $16.7 million. Core banking trends for loans and deposits were significantly influenced by the Paycheck Protection Program.

During the quarter, we secured SBA approvals for approximately 7,000 loans totaling $913 million. Additionally, increased liquidity in the financial system across both businesses and consumer client segments contributed to the strong deposit growth. Our banking teams are seeing a return to sales momentum across many of our business lines. Our mortgage team continues to see a very high volume of refinances and purchases with rates at an all-time low. Sales activity also has been strong for checking growth, consumer loan originations and wealth. All teams are embracing the virtual remote solutions leveraged to a greater degree during the height of