First Financial Bancorp in Cincinnati said late Tuesday that it expects to report increases in net chargeoffs and past-due loans when it releases its fourth-quarter and full-year results next month.
Citing the weakening economy and rising unemployment in its markets, the $3.5 billion-asset First Financial said it expects to report full-year net chargeoffs of $12 million to $13 million. Last year it reported $6 million.
It also said it expects to report a nonperforming loan rate of 0.7% to 0.75% of total loans. At the end of last year the rate was 0.56%. With asset quality weakening, First Financial said it also expects to report that its yearend provision for loan losses increased more than fivefold from a year earlier, to between $10 million and $10.5 million.
