EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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Media Contact:
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Cheryl Lipp |
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(513) 979-5797 |
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cheryl.lipp@bankatfirst.com |
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Analyst Contact:
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J. Franklin Hall |
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(513) 979-5770 |
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frank.hall@bankatfirst.com |
First Financial Bancorp Reports First Quarter 2008 Financial Results
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First quarter 2008 net earnings of $0.20 per diluted share |
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Continued strong growth in average commercial, commercial real
estate, and construction loans of 16.1 percent from first quarter
2007 |
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Allowance for loan and lease losses increased to 1.14 percent
from 1.12 percent, with stable nonperforming assets |
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Tangible equity ratio grows to 7.55 percent |
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First quarter 2008 return on average assets of 0.89 percent and
return on average shareholders’ equity of 10.63 percent |
Cincinnati, Ohio — April 29, 2008 — First Financial Bancorp (Nasdaq: FFBC) president and
chief executive officer, Claude E. Davis, today announced first quarter 2008 net income of $7.3
million or 20 cents in diluted earnings per share, compared to $8.4 million or 22 cents in diluted
earnings per share for the first quarter 2007. Net income was $10.7 million or 29 cents in diluted
earnings per share in the fourth quarter 2007.
Davis said, “This is a unique and challenging time for the financial services industry, and it is
likely to remain so for the foreseeable future. We continue to manage the company from a strong
balance sheet and capital position, growing loans in a prudent fashion and proactively managing
credit quality.”
Return on average assets for the first quarter 2008 was 0.89 percent compared to 1.04 percent for
the first quarter 2007 and 1.27 percent for the fourth quarter 2007. Return on average
shareholders’ equity was 10.63 percent for the first quarter 2008 compared to 11.94 percent for the
same period in 2007 and 15.37 percent for the fourth quarter 2007.
Unless otherwise noted, all amounts discussed in the earnings release are pre-tax except net income
and per-share data which are presented after-tax. Percentage changes are not annualized unless
specifically noted.
NET INTEREST INCOME
First Quarter 2008 vs. First Quarter 2007
Net interest income in the first quarter 2008 was $28.2 million compared to $30.4 million in the
first quarter 2007, a decrease of $2.2 million or 7.1 percent. First quarter 2008 net interest
margin of 3.78 percent decreased 34 basis points from 4.12 percent for the first quarter 2007. The
decline in net interest income and margin is primarily a result of actions by the Federal Reserve
to address the weakening economy, including the consumer mortgage crisis, by lowering the federal
funds rate by 300 basis points over the past seven months, and the resulting impact on our asset
sensitive balance sheet. Earning asset growth, specifically growth in the commercial, commercial
real estate, and construction loan portfolios, partially offset the
effects of the decline in market interest
rates.
Approximately
10 basis points of the first quarter 2007 net interest margin is due to the
impact of an accrual of income to convert certain consumer loans from a cycle-date basis of income
recognition to a calendar-month basis. The first quarter 2007 adjusted net interest margin,
excluding the impact of this accrual, was 4.02 percent.
On a tax equivalent basis, the first quarter 2008 net interest margin of 3.85 percent decreased 35
basis points from 4.20 percent for the first quarter 2007. Excluding the impact of the previously
mentioned accrual, first quarter 2007 net interest margin on a tax equivalent basis was 4.10
percent.
First Quarter 2008 vs. Fourth Quarter 2007
Net interest income on a linked-quarter (first quarter 2008 compared to fourth quarter 2007) basis
decreased from $29.1 million in the fourth quarter 2007 to $28.2 million in the first quarter 2008,
a $0.9 million or 11.4 percent annualized decrease. The decrease in net interest income is
primarily due to a decline in market interest rates, including a 200 basis point reduction in the
federal funds rate during the first quarter 2008, partially offset by stronger fee income and the
continued mix shift in total earning assets. Linked-quarter net interest margin remained
relatively flat, decreasing 1 basis point from 3.79 percent to 3.78 percent. On a tax-equivalent
basis, the first quarter 2008 net interest margin was 3.85 percent as compared to 3.86 percent for
the fourth quarter 2007.
For further details on the quarter-over-quarter and full year changes in the net interest margin,
please see the attached Net Interest Margin Rate / Volume Analysis.
l Page 2
NONINTEREST INCOME
First Quarter 2008 vs. First Quarter 2007
First quarter 2008 noninterest income of $14.9 million remained relatively flat compared to the
first quarter 2007. Noninterest income in the first quarter 2008 included a $1.6 million gain
associated with the partial redemption of Visa Inc. common shares comprised of a $1.1 million gain
on the share redemption and the reversal of the $0.5 million litigation reserve established in the
fourth quarter 2007. The first quarter 2007 included a $1.1 million gain on the sale of the
servicing rights for First Financial’s residential real estate loans serviced for others.
Excluding these items, first quarter 2008 noninterest income decreased $0.4 million or 2.9 percent
from the first quarter 2007 primarily due to lower earnings from bank-owned life insurance offset
by higher trust and wealth management fees.
First Quarter 2008 vs. Fourth Quarter 2007
On a linked-quarter basis, total noninterest income decreased $5.4 million or 26.6 percent. First
quarter 2008 noninterest income included the previously mentioned
$1.6 million effect of the Visa Inc. redemption and
the fourth quarter 2007 included a $5.5 million gain on the sale of First Financial’s merchant
payment processing portfolio. Excluding these items, first quarter 2008 noninterest income
decreased $1.5 million or 10.0 percent from the fourth quarter 2007 primarily due to a seasonal
decline in service charges on deposit accounts and lower market-value
driven trust and wealth management fees, offset
by higher bankcard income.
NONINTEREST EXPENSE
First Quarter 2008 vs. First Quarter 2007
Total noninterest expense decreased $2.2 million or 7.0 percent during the first quarter 2008 as
compared to the first quarter 2007 primarily due to the following:
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decreases in salaries and employee benefits of $1.9 million primarily due to a $0.9
million reduction in severance costs, $0.5 million reduction in salaries and
incentive-based compensation as a result of an overall reduction in staffing levels, and
$0.2 million reduction in pension and other retirement-related expenses |
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decreases in marketing related costs of $0.4 million primarily due to the costs
associated with the branding initiative in 2007 |
First Quarter 2008 vs. Fourth Quarter 2007
On a linked-quarter basis, noninterest expense decreased $2.4 million or 7.5 percent from the
fourth quarter 2007. This decrease in noninterest expense was primarily due to the $2.2 million
pension settlement charge which occurred in the fourth quarter 2007. The prior period pension settlement charge was an
acceleration of costs that were previously deferred under pension accounting rules and would have
been recognized in future periods.
l Page 3
INCOME TAXES
Income tax expense was $3.5 million and $4.1 million for the first quarters 2008 and 2007,
respectively. The effective taxes rates for the first quarters 2008 and 2007 were 32.6 percent and
33.0 percent, respectively.
LOANS
First Quarter 2008 vs. First Quarter 2007
Loan growth continues to be driven by First Financial’s efforts to deepen its market presence,
primarily in its metropolitan markets, resulting in the mix shift from lower yielding consumer
lending to higher yielding commercial loans. Average total loans during the first quarter 2008
increased $109.9 million or 4.4 percent from the comparable period a year ago. Average commercial,
commercial real estate, and construction loans increased $228.7 million or 16.1 percent from the
first quarter 2007.
During late 2005 and early 2006, management made a number of strategic decisions to realign its
balance sheet and change its lending focus. These decisions included exiting indirect installment
lending and no longer holding its residential real estate loan originations on the balance sheet.
This has resulted in the cumulative reduction in indirect installment and residential real estate
loan balances of $206 million and $194 million, respectively, since that time.
First Quarter 2008 vs. Fourth Quarter 2007
Average total loans for the first quarter 2008 remained relatively flat, increasing $8.1 million or
1.2 percent on an annualized basis from the fourth quarter 2007; however, average commercial,
commercial real estate, and construction loans increased $28.6 million or 7.0 percent on an
annualized basis from the fourth quarter 2007.
CREDIT QUALITY
While most
market indicators point to a continued decline in the performance of certain real estate and
consumer-based lending products as a result of the broad economic downturn, First Financial’s
overall credit quality remains stable. First Financial’s total loan portfolio has, and continues
to shift away from most consumer-based lending. As such, the expected effects on First Financial
from such economic conditions, relative to the industry, should be less severe. Additionally, the
mix of the total loan portfolio has shifted not only in product type, but in the risk profile of
the borrowers due to the improvements in both underwriting and in the resolution strategies used
for problem credits. However, there always remains the possibility of an unexpected event which
could result in higher credit costs.
l Page 4
Total
nonperforming assets have remained relatively consistent over the past four quarters,
fluctuating less than 5 percent since the second quarter 2007. At the end of the first quarter
2008, total nonperforming assets were $17.6 million, an increase of $0.3 million from the end of
the fourth quarter 2007. Compared to the end of the fourth quarter 2007, the ratio of
nonperforming loans to total loans increased 2 basis points to 58 basis points at the end of the
first quarter 2008, and the ratio of nonperforming assets to period-end loans, plus other real
estate owned, remained consistent at 67 basis points at the end of the first quarter 2008.
First Financial’s March 31, 2008, allowance for loan and lease losses to period-end loans ratio was
1.14 percent as compared to the March 31, 2007, and December 31, 2007, ratios of 1.10 percent and 1.12 percent, respectively. The increase in
the allowance for loan and lease losses to period-end loans ratio is based on our estimate of
potential losses inherent in the loan portfolio in today’s
economic environment, primarily driven by changes in consumer-based
credit. First Financial’s allowance for loan and lease losses to nonaccrual and nonperforming loan
ratios have been stable since the second quarter 2007, and at March 31, 2008, were
202.29 percent and 194.83 percent, respectively. A large percentage of nonperforming assets are
secured by real estate, and this collateral has been appropriately considered in establishing the
allowance for loan and lease losses.
At March 31, 2008, the commercial real estate and real estate construction loan portfolio totaled
$899.1 million, or 34.4 percent of total loans, including $130.2 million or 5.0 percent of total
loans for commercial real estate construction, and $42.5 million or 1.6 percent of total loans, for
residential construction, land acquisition, and development. First Financial believes its internal
lending policies and extensive underwriting standards are key to limiting credit exposure from both
the residential construction and land acquisition and development segments in any particular
project.
First Financial continually evaluates the commercial real estate and real estate construction
portfolio for geographic and borrower concentrations, as well as loan-to-value coverage, and
believes its credit underwriting processes are producing a prudent and acceptable level of credit
exposure.
Since the first quarter 2007, First Financial has experienced nearly 10 percent growth in its home
equity loan portfolio average balances. First Financial believes its underwriting criteria coupled
with the monitoring of a number of metrics including credit scores, loan-to-value ratios, line
size, and usage, provides adequate oversight for the growth. First Financial maintains a strong pricing discipline for its home equity loan product and
does not sacrifice loan quality for growth.
l Page 5
In the second quarter 2005, First Financial made the strategic decision to discontinue the
origination of residential real estate loans for retention on its balance sheet. As a result, the
residential real estate portfolio has declined $194 million, excluding the impact of the loan
sales, since that time. In the first quarter 2007, First Financial sold the servicing of its
remaining residential real estate portfolio and established an agreement to sell substantially all
of its future originations to a strategic partner. Prior to this decision, First Financial was not
a sub-prime lender, and the company does not originate sub-prime residential real estate loans in
the current originate-and-sell model.
It is management’s belief that the $29.7 million allowance for loan and lease losses at March 31,
2008, is adequate to absorb probable credit losses inherent in the portfolio.
First Quarter 2008 vs. First Quarter 2007
First quarter 2008 net charge-offs were $2.6 million, an annualized 40 basis points of average
loans, compared to first quarter 2007 net charge-offs of $1.3 million, an annualized 22 basis
points of average loans. Approximately $0.5 million or 8 basis points of the increase is due to
the impact of four large home equity loan charge-offs. From an industry perspective, home equity
lending may continue to experience stress, as borrowers come under continued pressure in the
current economic environment. First Financial’s overall credit quality metrics for its home equity
loan portfolio continue to remain stable, as over the past eight quarters both the home equity net
charge-off ratio and ratio of nonaccrual home equity loans to total home equity loans have
consistently been below 50 basis points, when the previously mentioned first quarter 2008 home
equity loan charge-offs are excluded. First Financial continues to actively monitor its home
equity loan portfolio but may experience similar volatility in upcoming quarters.
Total nonperforming assets at the end of the first quarter 2008 were $17.6 million, an increase of
$3.6 million from the end of the first quarter 2007 primarily due to a higher level of nonaccrual
residential real estate loans. As a result, the ratio of nonperforming loans to total loans
increased from 45 basis points at the end of the first quarter 2007 to 58 basis points at the end
of the first quarter 2008. This 13 basis point increase in the ratio of nonperforming loans to
total loans, combined with the recent developments in the overall consumer credit environment, have
been the primary drivers for the increase in the allowance for loan and lease losses to total loans
ratio from 1.10 percent to 1.14 percent. The ratio of nonperforming assets to period-end loans,
plus other real estate owned, increased from 56 basis points at the end of the first quarter 2007
to 67 basis points at the end of the first quarter 2008.
l Page 6
First Quarter 2008 vs. Fourth Quarter 2007
First quarter 2008 net charge-offs were $2.6 million, an annualized 40 basis points of average
loans or 32 basis points of average loans excluding the
previously mentioned large home equity loan charge-offs, compared to fourth quarter 2007 net charge-offs of $1.7 million, an annualized 26 basis
points of average loans.
Total nonperforming assets at the end of the first quarter 2008 were $17.6 million, an increase of
$0.3 million from the end of the fourth quarter 2007. The ratio of nonperforming loans to total
loans increased from 56 basis points at the end of the fourth quarter 2007 to 58 basis points at
the end of the first quarter 2008, and the ratio of nonperforming assets to period-end loans, plus
other real estate owned, remained consistent at 67 basis points at the end of the first quarter
2008 as compared to the end of the fourth quarter 2007.
For further details on the quarter-over-quarter changes in credit quality, please see the attached
Credit Quality schedule.
INVESTMENTS
Securities available-for-sale were $345.1 million at March 31, 2008, compared to $325.8 million at
March 31, 2007, and $306.9 million at December 31, 2007. The combined investment portfolio was
11.7 percent and 11.0 percent of total assets at March 31, 2008, and 2007, respectively, and 10.3
percent of total assets at December 31, 2007. The investment portfolio, as a percentage of total
assets, remains low relative to our peers; however, First Financial is reviewing various portfolio
strategies and expects to increase this percentage as opportunities
present themselves. Among other factors, portfolio
selection criteria avoid securities backed by sub-prime assets and also those
containing assets that would give rise to material geographic
concentrations. At March
31, 2008, First Financial held approximately 58 percent of its available-for-sale securities in
mortgage related instruments, substantially all of which are held in highly rated agency
pass-through residential mortgage instruments.
DEPOSITS
Total deposit balances, both average and period-end, were up slightly on a year-over-year basis and
declined on a linked-quarter basis. The seasonal fluctuation from a large commercial
noninterest-bearing account was the primary reason for the linked-quarter decline. Transaction
account balances, both average and period-end, have grown over these comparative periods but this
growth has been offset by the runoff of time and wholesale deposits as a result of our decision to
maintain rational deposit pricing in a very competitive landscape. The consumer’s preference for higher-yielding money market accounts and time deposits, rather than more
traditional transaction accounts, continues to result in shifts in deposit mix and behavior-based
margin compression.
l Page 7
First Quarter 2008 vs. First Quarter 2007
Average deposits for the first quarter 2008 increased $23.7 million or 0.8 percent from the
comparable period a year ago. Average total interest-bearing deposits for the first quarter 2008
increased $46.1 million or 1.9 percent, and average noninterest-bearing deposits decreased $22.5
million or 5.6 percent, both from the first quarter 2007. Average transaction account balances
increased approximately $41 million or 3.4 percent from the first quarter 2007.
First Quarter 2008 vs. Fourth Quarter 2007
Average deposits for the first quarter 2008 decreased $28.5 million or 4.0 percent on an annualized
basis from the fourth quarter 2007. Average total interest-bearing deposits decreased $8.4 million
or 1.4 percent, and average noninterest-bearing deposits decreased $20.1 million or 20.1 percent,
both on an annualized basis from the fourth quarter 2007. Average transaction account balances
increased approximately $22 million or 7.3 percent, offset by the runoff of time and wholesale
account balances of approximately $31 million or 9.9 percent, both on an annualized basis from the
fourth quarter 2007. Period-end noninterest-bearing deposits decreased $60.7 million from the
fourth quarter 2007 primarily due to the seasonal deposit activity of large commercial clients.
CAPITAL
Regulatory
capital ratios at March 31, 2008, included the leverage ratio of
8.32 percent, Tier 1 ratio of 10.20 percent, and total
capital ratio of 11.31 percent. All regulatory capital ratios
significantly exceeded the amounts necessary to be classified as
“well capitalized” and total regulatory capital exceeded
the “minimum” requirement by approximately
$89 million. The tangible capital ratio increased to
7.55 percent at March 31, 2008, from 7.41 percent at
December 31, 2007. The adoption of two new accounting standards
effective January 1, 2008, had a combined negative impact of
12 basis points on the total capital ratio.
2008 Outlook
Based upon the overall economic outlook for the remainder of 2008, including but not limited to
such factors as inflation, unemployment, growth, and forward market interest rates, management’s
2008 outlook remains largely unchanged. We continue to anticipate low single digit growth in total
loans, while total deposits are expected to experience a low single digit decline in balances with
transaction deposits growing at a low single digit rate and time deposits declining at a similar
pace. In addition to loan growth, earning assets are expected to increase by approximately $100
million to $150 million due to increased investment security purchases, supported by an increase in
borrowings. The result of this strategy will be an increase in net
interest income with a negative effect to our net interest margin. Total net interest income is expected to stabilize and grow for the remainder of 2008
and our full-year margin expectation is between 3.67 and 3.75 percent. Net charge-off levels are
expected to remain between 30 and 40 basis points of average loans. Management does expect modest
noninterest income growth and little to no growth in
l Page 8
noninterest expense. A material change in
economic conditions would have an impact on our expected 2008 performance. Please refer to the
forward looking statement found at the end of this release.
EARNINGS CONFERENCE CALL AND WEBCAST
On April 30, 2008, First Financial will host an earnings conference call that will be webcast live
at 9:00 a.m. EDT. The presenters will be Claude E. Davis, president and chief executive officer,
and J. Franklin Hall, executive vice president and chief financial officer. Anyone may participate
in the conference call by calling 1-800-860-2442 (no passcode needed) or by logging on to the
company’s website (www.bankatfirst.com) for a live audio webcast of the call. Click on the
Investor Relations link and then on Webcast. Listeners should allow an extra five minutes to be
connected to the call or webcast. The event will be archived on the company’s website for one
year. Questions regarding this information should be directed to the Media Contact, Cheryl Lipp,
or the Analyst Contact, J. Franklin Hall.
This release should be read in conjunction with the consolidated financial statements, notes, and
tables attached and in the First Financial Bancorp Annual Report on Form 10-K for the year ended
December 31, 2007. Management’s analysis contains forward-looking statements that are provided to
assist in the understanding of anticipated future financial performance. However, such performance
involves risk and uncertainties that may cause actual results to differ materially. Factors that
could cause actual results to differ from those discussed in the forward-looking statements
include, but are not limited to, management’s ability to effectively execute its business plan; the
risk that the strength of the United States economy in general and the strength of the local
economies in which First Financial conducts operations may be different from expected, resulting
in, among other things, a deterioration in credit quality or a reduced demand for credit, including
the resultant effect on First Financial’s loan portfolio and allowance for loan and lease losses;
the effects of and changes in policies and laws of regulatory agencies, inflation, and interest
rates. For further discussion of certain factors that may cause such forward-looking statements to
differ materially from actual results, refer to the 2007 Form 10-K and other public documents filed
with the SEC. These documents are available on the investor relations section of First Financial’s
website at www.bankatfirst.com and on the SEC’s website at www.sec.gov.
l Page 9
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share)
(Unaudited)
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Three months ended, |
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Mar. 31, |
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Dec. 31, |
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Sep. 30, |
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Jun. 30, |
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Mar. 31, |
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2008 |
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2007 |
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2007 |
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2007 |
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2007 |
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RESULTS OF OPERATIONS |
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Net interest income |
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$ |
28,249 |
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$ |
29,079 |
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$ |
29,417 |
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$ |
29,601 |
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$ |
30,403 |
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Net income |
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$ |
7,338 |
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$ |
10,701 |
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$ |
8,373 |
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$ |
8,172 |
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$ |
8,435 |
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Net earnings per common share — basic |
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$ |
0.20 |
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$ |
0.29 |
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$ |
0.22 |
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$ |
0.21 |
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$ |
0.22 |
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Net earnings per common share — diluted |
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$ |
0.20 |
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$ |
0.29 |
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$ |
0.22 |
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$ |
0.21 |
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$ |
0.22 |
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Dividends declared per common share |
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$ |
0.17 |
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$ |
0.17 |
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$ |
0.16 |
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$ |
0.16 |
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$ |
0.16 |
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KEY FINANCIAL RATIOS |
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Return on average assets |
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0.89 |
% |
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1.27 |
% |
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1.00 |
% |
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1.00 |
% |
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1.04 |
% |
Return on average shareholders’ equity |
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10.63 |
% |
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15.37 |
% |
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12.03 |
% |
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11.61 |
% |
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11.94 |
% |
Return on average tangible shareholders’ equity |
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11.87 |
% |
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17.17 |
% |
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13.44 |
% |
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12.95 |
% |
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13.31 |
% |
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Net interest margin |
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3.78 |
% |
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3.79 |
% |
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3.88 |
% |
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3.97 |
% |
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4.12 |
% |
Net interest margin (fully tax equivalent) (1) |
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3.85 |
% |
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3.86 |
% |
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3.95 |
% |
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4.05 |
% |
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4.20 |
% |
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Average shareholders’ equity to average assets |
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8.39 |
% |
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8.27 |
% |
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8.34 |
% |
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8.58 |
% |
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8.68 |
% |
Tier 1 Ratio (2) |
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10.20 |
% |
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10.29 |
% |
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10.18 |
% |
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11.13 |
% |
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11.57 |
% |
Total Capital Ratio (2) |
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11.31 |
% |
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11.38 |
% |
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11.27 |
% |
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12.18 |
% |
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12.64 |
% |
Leverage Ratio (2) |
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8.32 |
% |
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8.26 |
% |
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8.21 |
% |
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9.04 |
% |
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9.08 |
% |
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AVERAGE BALANCE SHEET ITEMS |
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Loans (3) |
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$ |
2,596,483 |
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$ |
2,588,985 |
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$ |
2,576,308 |
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$ |
2,530,638 |
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$ |
2,490,252 |
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Investment securities |
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343,553 |
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350,346 |
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349,686 |
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364,050 |
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367,407 |
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Other earning assets |
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65,799 |
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106,922 |
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81,669 |
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93,986 |
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134,635 |
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Total earning assets |
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$ |
3,005,835 |
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$ |
3,046,253 |
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$ |
3,007,663 |
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$ |
2,988,674 |
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$ |
2,992,294 |
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Total assets |
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$ |
3,298,663 |
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$ |
3,338,828 |
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$ |
3,309,800 |
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$ |
3,291,756 |
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$ |
3,299,346 |
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Noninterest-bearing deposits |
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$ |
379,240 |
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$ |
399,304 |
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$ |
385,653 |
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$ |
405,179 |
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$ |
401,698 |
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Interest-bearing deposits |
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2,453,028 |
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2,461,464 |
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2,450,830 |
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|
|
2,403,919 |
|
|
|
2,406,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
$ |
2,832,268 |
|
|
$ |
2,860,768 |
|
|
$ |
2,836,483 |
|
|
$ |
2,809,098 |
|
|
$ |
2,808,611 |
|
Borrowings |
|
$ |
157,899 |
|
|
$ |
177,876 |
|
|
$ |
176,528 |
|
|
$ |
177,472 |
|
|
$ |
181,613 |
|
Shareholders’ equity |
|
$ |
276,815 |
|
|
$ |
276,269 |
|
|
$ |
276,183 |
|
|
$ |
282,354 |
|
|
$ |
286,453 |
|
| |
CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance to ending loans |
|
|
1.14 |
% |
|
|
1.12 |
% |
|
|
1.12 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
Allowance to nonaccrual loans |
|
|
202.29 |
% |
|
|
205.89 |
% |
|
|
221.70 |
% |
|
|
194.92 |
% |
|
|
254.59 |
% |
Allowance to nonperforming loans |
|
|
194.83 |
% |
|
|
197.94 |
% |
|
|
212.42 |
% |
|
|
187.35 |
% |
|
|
241.41 |
% |
Nonperforming loans to total loans |
|
|
0.58 |
% |
|
|
0.56 |
% |
|
|
0.53 |
% |
|
|
0.59 |
% |
|
|
0.45 |
% |
Nonperforming assets to ending loans, plus OREO |
|
|
0.67 |
% |
|
|
0.67 |
% |
|
|
0.65 |
% |
|
|
0.67 |
% |
|
|
0.56 |
% |
Nonperforming assets to total assets |
|
|
0.53 |
% |
|
|
0.51 |
% |
|
|
0.51 |
% |
|
|
0.52 |
% |
|
|
0.42 |
% |
Net charge-offs to average loans (annualized) |
|
|
0.40 |
% |
|
|
0.26 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.22 |
% |
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and
assumes a 35% 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.
(2) March 31, 2008 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.
FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2008 |
|
|
2007 |
|
|
|
|
|
|
|
| |
|
First |
|
|
Fourth |
|
|
Third |
|
|
Second |
|
|
First |
|
|
% Change |
|
|
% Change |
|
| |
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Linked Qtr. |
|
|
Comparable Qtr. |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
42,721 |
|
|
$ |
45,709 |
|
|
$ |
46,606 |
|
|
$ |
45,291 |
|
|
$ |
45,064 |
|
|
|
(6.5 |
%) |
|
|
(5.2 |
%) |
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
3,521 |
|
|
|
3,641 |
|
|
|
3,667 |
|
|
|
3,762 |
|
|
|
3,891 |
|
|
|
(3.3 |
%) |
|
|
(9.5 |
%) |
Tax-exempt |
|
|
791 |
|
|
|
859 |
|
|
|
863 |
|
|
|
911 |
|
|
|
909 |
|
|
|
(7.9 |
%) |
|
|
(13.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities interest |
|
|
4,312 |
|
|
|
4,500 |
|
|
|
4,530 |
|
|
|
4,673 |
|
|
|
4,800 |
|
|
|
(4.2 |
%) |
|
|
(10.2 |
%) |
Federal funds sold |
|
|
565 |
|
|
|
1,224 |
|
|
|
1,048 |
|
|
|
1,241 |
|
|
|
1,756 |
|
|
|
(53.8 |
%) |
|
|
(67.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
47,598 |
|
|
|
51,433 |
|
|
|
52,184 |
|
|
|
51,205 |
|
|
|
51,620 |
|
|
|
(7.5 |
%) |
|
|
(7.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
17,739 |
|
|
|
20,238 |
|
|
|
20,528 |
|
|
|
19,409 |
|
|
|
19,009 |
|
|
|
(12.3 |
%) |
|
|
(6.7 |
%) |
Short-term borrowings |
|
|
792 |
|
|
|
1,211 |
|
|
|
1,041 |
|
|
|
984 |
|
|
|
996 |
|
|
|
(34.6 |
%) |
|
|
(20.5 |
%) |
Long-term borrowings |
|
|
406 |
|
|
|
466 |
|
|
|
532 |
|
|
|
542 |
|
|
|
559 |
|
|
|
(12.9 |
%) |
|
|
(27.4 |
%) |
Subordinated debentures and capital securities |
|
|
412 |
|
|
|
439 |
|
|
|
666 |
|
|
|
669 |
|
|
|
653 |
|
|
|
(6.2 |
%) |
|
|
(36.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
19,349 |
|
|
|
22,354 |
|
|
|
22,767 |
|
|
|
21,604 |
|
|
|
21,217 |
|
|
|
(13.4 |
%) |
|
|
(8.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
28,249 |
|
|
|
29,079 |
|
|
|
29,417 |
|
|
|
29,601 |
|
|
|
30,403 |
|
|
|
(2.9 |
%) |
|
|
(7.1 |
%) |
Provision for loan and lease losses |
|
|
3,223 |
|
|
|
1,640 |
|
|
|
2,558 |
|
|
|
2,098 |
|
|
|
1,356 |
|
|
|
96.5 |
% |
|
|
137.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan and
lease losses |
|
|
25,026 |
|
|
|
27,439 |
|
|
|
26,859 |
|
|
|
27,503 |
|
|
|
29,047 |
|
|
|
(8.8 |
%) |
|
|
(13.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
4,607 |
|
|
|
5,330 |
|
|
|
5,396 |
|
|
|
5,296 |
|
|
|
4,744 |
|
|
|
(13.6 |
%) |
|
|
(2.9 |
%) |
Trust and wealth management fees |
|
|
4,622 |
|
|
|
4,989 |
|
|
|
4,721 |
|
|
|
4,526 |
|
|
|
4,160 |
|
|
|
(7.4 |
%) |
|
|
11.1 |
% |
Bankcard income |
|
|
1,298 |
|
|
|
1,165 |
|
|
|
1,422 |
|
|
|
1,424 |
|
|
|
1,240 |
|
|
|
11.4 |
% |
|
|
4.7 |
% |
Net gains from sales of loans |
|
|
219 |
|
|
|
295 |
|
|
|
203 |
|
|
|
184 |
|
|
|
162 |
|
|
|
(25.8 |
%) |
|
|
35.2 |
% |
Gain on sale of merchant payment processing portfolio |
|
|
0 |
|
|
|
5,501 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
N/M |
|
|
|
N/M |
|
Gain on sale of mortgage servicing rights |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,061 |
|
|
|
N/M |
|
|
|
N/M |
|
Gains on sales of investment securities |
|
|
1,585 |
|
|
|
0 |
|
|
|
367 |
|
|
|
0 |
|
|
|
0 |
|
|
|
N/M |
|
|
|
N/M |
|
Other |
|
|
2,544 |
|
|
|
2,982 |
|
|
|
2,341 |
|
|
|
2,702 |
|
|
|
3,377 |
|
|
|
(14.7 |
%) |
|
|
(24.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
|
14,875 |
|
|
|
20,262 |
|
|
|
14,450 |
|
|
|
14,132 |
|
|
|
14,744 |
|
|
|
(26.6 |
%) |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
17,073 |
|
|
|
16,508 |
|
|
|
17,288 |
|
|
|
17,134 |
|
|
|
18,961 |
|
|
|
3.4 |
% |
|
|
(10.0 |
%) |
Pension settlement charges |
|
|
0 |
|
|
|
2,222 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
N/M |
|
|
|
N/M |
|
Net occupancy |
|
|
2,952 |
|
|
|
2,842 |
|
|
|
2,728 |
|
|
|
2,484 |
|
|
|
2,807 |
|
|
|
3.9 |
% |
|
|
5.2 |
% |
Furniture and equipment |
|
|
1,653 |
|
|
|
1,742 |
|
|
|
1,684 |
|
|
|
1,708 |
|
|
|
1,627 |
|
|
|
(5.1 |
%) |
|
|
1.6 |
% |
Data processing |
|
|
793 |
|
|
|
825 |
|
|
|
1,010 |
|
|
|
818 |
|
|
|
845 |
|
|
|
(3.9 |
%) |
|
|
(6.2 |
%) |
Marketing |
|
|
517 |
|
|
|
523 |
|
|
|
407 |
|
|
|
642 |
|
|
|
869 |
|
|
|
(1.1 |
%) |
|
|
(40.5 |
%) |
Communication |
|
|
805 |
|
|
|
903 |
|
|
|
664 |
|
|
|
798 |
|
|
|
865 |
|
|
|
(10.9 |
%) |
|
|
(6.9 |
%) |
Professional services |
|
|
761 |
|
|
|
1,109 |
|
|
|
964 |
|
|
|
1,063 |
|
|
|
1,006 |
|
|
|
(31.4 |
%) |
|
|
(24.4 |
%) |
Other |
|
|
4,466 |
|
|
|
4,698 |
|
|
|
3,980 |
|
|
|
4,793 |
|
|
|
4,230 |
|
|
|
(4.9 |
%) |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expenses |
|
|
29,020 |
|
|
|
31,372 |
|
|
|
28,725 |
|
|
|
29,440 |
|
|
|
31,210 |
|
|
|
(7.5 |
%) |
|
|
(7.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
10,881 |
|
|
|
16,329 |
|
|
|
12,584 |
|
|
|
12,195 |
|
|
|
12,581 |
|
|
|
(33.4 |
%) |
|
|
(13.5 |
%) |
Income tax expense |
|
|
3,543 |
|
|
|
5,628 |
|
|
|
4,211 |
|
|
|
4,023 |
|
|
|
4,146 |
|
|
|
(37.0 |
%) |
|
|
(14.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,338 |
|
|
$ |
10,701 |
|
|
$ |
8,373 |
|
|
$ |
8,172 |
|
|
$ |
8,435 |
|
|
|
(31.4 |
%) |
|
|
(13.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share — basic |
|
$ |
0.20 |
|
|
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
Net earnings per common share — diluted |
|
$ |
0.20 |
|
|
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
7.41 |
|
|
$ |
7.40 |
|
|
$ |
7.26 |
|
|
$ |
7.18 |
|
|
$ |
7.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.89 |
% |
|
|
1.27 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.04 |
% |
|
|
|
|
|
|
|
|
Return on average shareholders’ equity |
|
|
10.63 |
% |
|
|
15.37 |
% |
|
|
12.03 |
% |
|
|
11.61 |
% |
|
|
11.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
47,598 |
|
|
$ |
51,433 |
|
|
$ |
52,184 |
|
|
$ |
51,205 |
|
|
$ |
51,620 |
|
|
|
(7.5 |
%) |
|
|
(7.8 |
%) |
Tax equivalent adjustment |
|
|
514 |
|
|
|
561 |
|
|
|
564 |
|
|
|
580 |
|
|
|
576 |
|
|
|
(8.4 |
%) |
|
|
(10.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income — tax equivalent |
|
|
48,112 |
|
|
|
51,994 |
|
|
|
52,748 |
|
|
|
51,785 |
|
|
|
52,196 |
|
|
|
(7.5 |
%) |
|
|
(7.8 |
%) |
Interest expense |
|
|
19,349 |
|
|
|
22,354 |
|
|
|
22,767 |
|
|
|
21,604 |
|
|
|
21,217 |
|
|
|
(13.4 |
%) |
|
|
(8.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income — tax equivalent |
|
$ |
28,763 |
|
|
$ |
29,640 |
|
|
$ |
29,981 |
|
|
$ |
30,181 |
|
|
$ |
30,979 |
|
|
|
(3.0 |
%) |
|
|
(7.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
3.78 |
% |
|
|
3.79 |
% |
|
|
3.88 |
% |
|
|
3.97 |
% |
|
|
4.12 |
% |
|
|
|
|
|
|
|
|
Net interest margin (fully tax equivalent) (1) |
|
|
3.85 |
% |
|
|
3.86 |
% |
|
|
3.95 |
% |
|
|
4.05 |
% |
|
|
4.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees |
|
|
1,056 |
|
|
|
1,057 |
|
|
|
1,078 |
|
|
|
1,158 |
|
|
|
1,166 |
|
|
|
|
|
|
|
|
|
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a
35% 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 provided useful information to investors by allowing them to make peer comparisons. Management also uses these
measures to make peer comparisons.
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
% Change |
|
|
% Change |
|
| |
|
2008 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
|
Linked Qtr. |
|
|
Comparable Qtr. |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
102,246 |
|
|
$ |
106,224 |
|
|
$ |
92,414 |
|
|
$ |
87,808 |
|
|
$ |
87,969 |
|
|
|
(3.7 |
%) |
|
|
16.2 |
% |
Federal funds sold |
|
|
2,943 |
|
|
|
106,990 |
|
|
|
71,700 |
|
|
|
55,000 |
|
|
|
159,200 |
|
|
|
(97.2 |
%) |
|
|
(98.2 |
%) |
Investment securities trading |
|
|
3,820 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
N/M |
|
|
|
N/M |
|
Investment securities available-for-sale |
|
|
345,145 |
|
|
|
306,928 |
|
|
|
307,908 |
|
|
|
313,575 |
|
|
|
325,755 |
|
|
|
12.5 |
% |
|
|
6.0 |
% |
Investment securities held-to-maturity |
|
|
5,414 |
|
|
|
5,639 |
|
|
|
5,467 |
|
|
|
5,711 |
|
|
|
7,769 |
|
|
|
(4.0 |
%) |
|
|
(30.3 |
%) |
Other investments |
|
|
34,293 |
|
|
|
33,969 |
|
|
|
33,969 |
|
|
|
33,969 |
|
|
|
33,969 |
|
|
|
1.0 |
% |
|
|
1.0 |
% |
Loans held for sale |
|
|
4,108 |
|
|
|
1,515 |
|
|
|
5,763 |
|
|
|
0 |
|
|
|
0 |
|
|
|
171.2 |
% |
|
|
N/M |
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
789,922 |
|
|
|
785,143 |
|
|
|
774,059 |
|
|
|
747,292 |
|
|
|
709,341 |
|
|
|
0.6 |
% |
|
|
11.4 |
% |
Real estate — construction |
|
|
172,737 |
|
|
|
151,432 |
|
|
|
155,495 |
|
|
|
125,732 |
|
|
|
107,867 |
|
|
|
14.1 |
% |
|
|
60.1 |
% |
Real estate — commercial |
|
|
726,397 |
|
|
|
706,409 |
|
|
|
684,931 |
|
|
|
676,679 |
|
|
|
647,126 |
|
|
|
2.8 |
% |
|
|
12.2 |
% |
Real estate — residential |
|
|
519,790 |
|
|
|
539,332 |
|
|
|
556,255 |
|
|
|
580,005 |
|
|
|
604,213 |
|
|
|
(3.6 |
%) |
|
|
(14.0 |
%) |
Installment |
|
|
126,623 |
|
|
|
138,895 |
|
|
|
149,881 |
|
|
|
162,506 |
|
|
|
180,116 |
|
|
|
(8.8 |
%) |
|
|
(29.7 |
%) |
Home equity |
|
|
254,200 |
|
|
|
250,888 |
|
|
|
245,853 |
|
|
|
235,734 |
|
|
|
228,660 |
|
|
|
1.3 |
% |
|
|
11.2 |
% |
Credit card |
|
|
25,528 |
|
|
|
26,610 |
|
|
|
24,904 |
|
|
|
24,488 |
|
|
|
23,678 |
|
|
|
(4.1 |
%) |
|
|
7.8 |
% |
Lease financing |
|
|
258 |
|
|
|
378 |
|
|
|
500 |
|
|
|
608 |
|
|
|
732 |
|
|
|
(31.7 |
%) |
|
|
(64.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
2,615,455 |
|
|
|
2,599,087 |
|
|
|
2,591,878 |
|
|
|
2,553,044 |
|
|
|
2,501,733 |
|
|
|
0.6 |
% |
|
|
4.5 |
% |
Less |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
29,718 |
|
|
|
29,057 |
|
|
|
29,136 |
|
|
|
28,060 |
|
|
|
27,407 |
|
|
|
2.3 |
% |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans |
|
|
2,585,737 |
|
|
|
2,570,030 |
|
|
|
2,562,742 |
|
|
|
2,524,984 |
|
|
|
2,474,326 |
|
|
|
0.6 |
% |
|
|
4.5 |
% |
Premises and equipment |
|
|
78,585 |
|
|
|
78,994 |
|
|
|
78,214 |
|
|
|
79,079 |
|
|
|
79,553 |
|
|
|
(0.5 |
%) |
|
|
(1.2 |
%) |
Goodwill |
|
|
28,261 |
|
|
|
28,261 |
|
|
|
28,261 |
|
|
|
28,261 |
|
|
|
28,261 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Other intangibles |
|
|
659 |
|
|
|
698 |
|
|
|
828 |
|
|
|
1,003 |
|
|
|
1,195 |
|
|
|
(5.6 |
%) |
|
|
(44.9 |
%) |
Accrued interest and other assets |
|
|
132,054 |
|
|
|
130,068 |
|
|
|
141,890 |
|
|
|
143,277 |
|
|
|
129,991 |
|
|
|
1.5 |
% |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
3,323,265 |
|
|
$ |
3,369,316 |
|
|
$ |
3,329,156 |
|
|
$ |
3,272,667 |
|
|
$ |
3,327,988 |
|
|
|
(1.4 |
%) |
|
|
(0.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
|
$ |
610,154 |
|
|
$ |
603,870 |
|
|
$ |
611,764 |
|
|
$ |
594,788 |
|
|
$ |
627,996 |
|
|
|
1.0 |
% |
|
|
(2.8 |
%) |
Savings |
|
|
617,059 |
|
|
|
596,636 |
|
|
|
595,664 |
|
|
|
588,229 |
|
|
|
564,340 |
|
|
|
3.4 |
% |
|
|
9.3 |
% |
Time |
|
|
1,206,750 |
|
|
|
1,227,954 |
|
|
|
1,253,383 |
|
|
|
1,211,182 |
|
|
|
1,218,823 |
|
|
|
(1.7 |
%) |
|
|
(1.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
2,433,963 |
|
|
|
2,428,460 |
|
|
|
2,460,811 |
|
|
|
2,394,199 |
|
|
|
2,411,159 |
|
|
|
0.2 |
% |
|
|
0.9 |
% |
Noninterest-bearing |
|
|
405,015 |
|
|
|
465,731 |
|
|
|
389,070 |
|
|
|
399,260 |
|
|
|
420,521 |
|
|
|
(13.0 |
%) |
|
|
(3.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
2,838,978 |
|
|
|
2,894,191 |
|
|
|
2,849,881 |
|
|
|
2,793,459 |
|
|
|
2,831,680 |
|
|
|
(1.9 |
%) |
|
|
0.3 |
% |
Short-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and securities sold
under agreements to repurchase |
|
|
27,320 |
|
|
|
26,289 |
|
|
|
26,749 |
|
|
|
31,700 |
|
|
|
39,998 |
|
|
|
3.9 |
% |
|
|
(31.7 |
%) |
Federal Home Loan Bank |
|
|
6,500 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
N/M |
|
|
|
N/M |
|
Other |
|
|
53,000 |
|
|
|
72,000 |
|
|
|
74,500 |
|
|
|
52,500 |
|
|
|
52,246 |
|
|
|
(26.4 |
%) |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total short-term borrowings |
|
|
86,820 |
|
|
|
98,289 |
|
|
|
101,249 |
|
|
|
84,200 |
|
|
|
92,244 |
|
|
|
(11.7 |
%) |
|
|
(5.9 |
%) |
Federal Home Loan Bank long-term debt |
|
|
42,380 |
|
|
|
45,896 |
|
|
|
55,317 |
|
|
|
59,021 |
|
|
|
60,298 |
|
|
|
(7.7 |
%) |
|
|
(29.7 |
%) |
Other long-term debt |
|
|
20,620 |
|
|
|
20,620 |
|
|
|
20,620 |
|
|
|
30,930 |
|
|
|
30,930 |
|
|
|
0.0 |
% |
|
|
(33.3 |
%) |
Accrued interest and other liabilities |
|
|
56,698 |
|
|
|
33,737 |
|
|
|
30,386 |
|
|
|
25,831 |
|
|
|
28,481 |
|
|
|
68.1 |
% |
|
|
99.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
3,045,496 |
|
|
|
3,092,733 |
|
|
|
3,057,453 |
|
|
|
2,993,441 |
|
|
|
3,043,633 |
|
|
|
(1.5 |
%) |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
389,986 |
|
|
|
391,962 |
|
|
|
391,355 |
|
|
|
390,545 |
|
|
|
393,091 |
|
|
|
(0.5 |
%) |
|
|
(0.8 |
%) |
Retained earnings |
|
|
79,818 |
|
|
|
82,093 |
|
|
|
77,745 |
|
|
|
75,444 |
|
|
|
73,505 |
|
|
|
(2.8 |
%) |
|
|
8.6 |
% |
Accumulated other comprehensive loss |
|
|
(3,800 |
) |
|
|
(7,127 |
) |
|
|
(7,569 |
) |
|
|
(16,168 |
) |
|
|
(13,121 |
) |
|
|
(46.7 |
%) |
|
|
(71.0 |
%) |
Treasury stock, at cost |
|
|
(188,235 |
) |
|
|
(190,345 |
) |
|
|
(189,828 |
) |
|
|
(170,595 |
) |
|
|
(169,120 |
) |
|
|
(1.1 |
%) |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders’ Equity |
|
|
277,769 |
|
|
|
276,583 |
|
|
|
271,703 |
|
|
|
279,226 |
|
|
|
284,355 |
|
|
|
0.4 |
% |
|
|
(2.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
|
$ |
3,323,265 |
|
|
$ |
3,369,316 |
|
|
$ |
3,329,156 |
|
|
$ |
3,272,667 |
|
|
$ |
3,327,988 |
|
|
|
(1.4 |
%) |
|
|
(0.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarterly Averages |
|
| |
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Mar. 31, |
|
| |
|
2008 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
86,879 |
|
|
$ |
84,771 |
|
|
$ |
85,576 |
|
|
$ |
94,541 |
|
|
$ |
94,384 |
|
Federal funds sold |
|
|
65,799 |
|
|
|
106,922 |
|
|
|
81,669 |
|
|
|
93,986 |
|
|
|
134,635 |
|
Investment securities |
|
|
345,303 |
|
|
|
350,346 |
|
|
|
349,686 |
|
|
|
364,050 |
|
|
|
367,407 |
|
Loans held for sale |
|
|
3,122 |
|
|
|
3,689 |
|
|
|
2,245 |
|
|
|
162 |
|
|
|
6,793 |
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
781,358 |
|
|
|
776,286 |
|
|
|
766,028 |
|
|
|
733,936 |
|
|
|
685,585 |
|
Real estate — construction |
|
|
162,008 |
|
|
|
154,208 |
|
|
|
139,291 |
|
|
|
118,425 |
|
|
|
100,192 |
|
Real estate — commercial |
|
|
708,779 |
|
|
|
693,038 |
|
|
|
681,920 |
|
|
|
657,959 |
|
|
|
637,642 |
|
Real estate — residential |
|
|
530,567 |
|
|
|
542,204 |
|
|
|
566,618 |
|
|
|
592,811 |
|
|
|
616,892 |
|
Installment |
|
|
132,876 |
|
|
|
145,787 |
|
|
|
155,478 |
|
|
|
170,748 |
|
|
|
189,397 |
|
Home equity |
|
|
251,706 |
|
|
|
248,071 |
|
|
|
239,585 |
|
|
|
231,982 |
|
|
|
229,112 |
|
Credit card |
|
|
25,745 |
|
|
|
25,271 |
|
|
|
24,586 |
|
|
|
23,944 |
|
|
|
23,809 |
|
Lease financing |
|
|
322 |
|
|
|
431 |
|
|
|
557 |
|
|
|
671 |
|
|
|
830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
2,593,361 |
|
|
|
2,585,296 |
|
|
|
2,574,063 |
|
|
|
2,530,476 |
|
|
|
2,483,459 |
|
Less |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
28,860 |
|
|
|
29,503 |
|
|
|
28,278 |
|
|
|
27,482 |
|
|
|
27,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans |
|
|
2,564,501 |
|
|
|
2,555,793 |
|
|
|
2,545,785 |
|
|
|
2,502,994 |
|
|
|
2,455,689 |
|
Premises and equipment |
|
|
78,969 |
|
|
|
78,992 |
|
|
|
79,102 |
|
|
|
79,491 |
|
|
|
79,819 |
|
Goodwill |
|
|
28,261 |
|
|
|
28,261 |
|
|
|
28,261 |
|
|
|
28,261 |
|
|
|
28,261 |
|
Other intangibles |
|
|
680 |
|
|
|
749 |
|
|
|
915 |
|
|
|
1,096 |
|
|
|
5,464 |
|
Accrued interest and other assets |
|
|
125,149 |
|
|
|
129,305 |
|
|
|
136,561 |
|
|
|
127,175 |
|
|
|
126,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
3,298,663 |
|
|
$ |
3,338,828 |
|
|
$ |
3,309,800 |
|
|
$ |
3,291,756 |
|
|
$ |
3,299,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
|
$ |
623,206 |
|
|
$ |
607,009 |
|
|
$ |
632,890 |
|
|
$ |
606,320 |
|
|
$ |
646,548 |
|
Savings |
|
|
610,449 |
|
|
|
604,063 |
|
|
|
586,065 |
|
|
|
578,357 |
|
|
|
545,101 |
|
Time |
|
|
1,219,373 |
|
|
|
1,250,392 |
|
|
|
1,231,875 |
|
|
|
1,219,242 |
|
|
|
1,215,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
2,453,028 |
|
|
|
2,461,464 |
|
|
|
2,450,830 |
|
|
|
2,403,919 |
|
|
|
2,406,913 |
|
Noninterest-bearing |
|
|
379,240 |
|
|
|
399,304 |
|
|
|
385,653 |
|
|
|
405,179 |
|
|
|
401,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
2,832,268 |
|
|
|
2,860,768 |
|
|
|
2,836,483 |
|
|
|
2,809,098 |
|
|
|
2,808,611 |
|
Short-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and securities sold
under agreements to repurchase |
|
|
26,261 |
|
|
|
28,952 |
|
|
|
29,385 |
|
|
|
34,280 |
|
|
|
46,397 |
|
Federal Home Loan Bank |
|
|
614 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Other |
|
|
66,154 |
|
|
|
77,772 |
|
|
|
58,914 |
|
|
|
52,849 |
|
|
|
42,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total short-term borrowings |
|
|
93,029 |
|
|
|
106,724 |
|
|
|
88,299 |
|
|
|
87,129 |
|
|
|
88,533 |
|
Federal Home Loan Bank long-term debt |
|
|
44,250 |
|
|
|
50,532 |
|
|
|
57,860 |
|
|
|
59,413 |
|
|
|
62,150 |
|
Other long-term debt |
|
|
20,620 |
|
|
|
20,620 |
|
|
|
30,369 |
|
|
|
30,930 |
|
|
|
30,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowed funds |
|
|
157,899 |
|
|
|
177,876 |
|
|
|
176,528 |
|
|
|
177,472 |
|
|
|
181,613 |
|
Accrued interest and other liabilities |
|
|
31,681 |
|
|
|
23,915 |
|
|
|
20,606 |
|
|
|
22,832 |
|
|
|
22,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
3,021,848 |
|
|
|
3,062,559 |
|
|
|
3,033,617 |
|
|
|
3,009,402 |
|
|
|
3,012,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
391,079 |
|
|
|
391,606 |
|
|
|
390,898 |
|
|
|
391,536 |
|
|
|
392,908 |
|
Retained earnings |
|
|
79,951 |
|
|
|
81,615 |
|
|
|
77,428 |
|
|
|
74,049 |
|
|
|
74,497 |
|
Accumulated other comprehensive loss |
|
|
(4,977 |
) |
|
|
(6,670 |
) |
|
|
(15,097 |
) |
|
|
(13,739 |
) |
|
|
(13,725 |
) |
Treasury stock, at cost |
|
|
(189,238 |
) |
|
|
(190,282 |
) |
|
|
(177,046 |
) |
|
|
(169,492 |
) |
|
|
(167,227 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders’ Equity |
|
|
276,815 |
|
|
|
276,269 |
|
|
|
276,183 |
|
|
|
282,354 |
|
|
|
286,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
|
$ |
3,298,663 |
|
|
$ |
3,338,828 |
|
|
$ |
3,309,800 |
|
|
$ |
3,291,756 |
|
|
$ |
3,299,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS(1)
(Dollars in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarterly Averages |
|
|
|
|
|
|
|
| |
|
Mar. 31, 2008 |
|
|
Dec. 31, 2007 |
|
|
Mar. 31, 2007 |
|
|
Linked Qtr. Income Variance |
|
|
Comparable Qtr. Income Variance |
|
| |
|
Balance |
|
|
Yield |
|
|
Balance |
|
|
Yield |
|
|
Balance |
|
|
Yield |
|
|
Rate |
|
|
Volume |
|
|
Total |
|
|
Rate |
|
|
Volume |
|
|
Total |
|
Earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
343,553 |
|
|
|
5.03 |
% |
|
$ |
350,346 |
|
|
|
5.10 |
% |
|
$ |
367,407 |
|
|
|
5.30 |
% |
|
$ |
(54 |
) |
|
$ |
(134 |
) |
|
$ |
(188 |
) |
|
$ |
(239 |
) |
|
$ |
(249 |
) |
|
$ |
(488 |
) |
Federal funds sold |
|
|
65,799 |
|
|
|
3.44 |
% |
|
|
106,922 |
|
|
|
4.54 |
% |
|
|
134,635 |
|
|
|
5.29 |
% |
|
|
(296 |
) |
|
|
(363 |
) |
|
|
(659 |
) |
|
|
(613 |
) |
|
|
(578 |
) |
|
|
(1,191 |
) |
Gross loans (2) |
|
|
2,596,483 |
|
|
|
6.60 |
% |
|
|
2,588,985 |
|
|
|
7.00 |
% |
|
|
2,490,252 |
|
|
|
7.34 |
% |
|
|
(2,643 |
) |
|
|
(345 |
) |
|
|
(2,988 |
) |
|
|
(4,541 |
) |
|
|
2,198 |
|
|
|
(2,343 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earning assets |
|
|
3,005,835 |
|
|
|
6.35 |
% |
|
|
3,046,253 |
|
|
|
6.70 |
% |
|
|
2,992,294 |
|
|
|
7.00 |
% |
|
|
(2,993 |
) |
|
|
(842 |
) |
|
|
(3,835 |
) |
|
|
(5,393 |
) |
|
|
1,371 |
|
|
|
(4,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
(28,860 |
) |
|
|
|
|
|
|
(29,503 |
) |
|
|
|
|
|
|
(27,770 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
86,879 |
|
|
|
|
|
|
|
84,771 |
|
|
|
|
|
|
|
94,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest and other assets |
|
|
234,809 |
|
|
|
|
|
|
|
237,307 |
|
|
|
|
|
|
|
240,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,298,663 |
|
|
|
|
|
|
$ |
3,338,828 |
|
|
|
|
|
|
$ |
3,299,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
$ |
2,453,028 |
|
|
|
2.90 |
% |
|
$ |
2,461,464 |
|
|
|
3.26 |
% |
|
$ |
2,406,913 |
|
|
|
3.20 |
% |
|
$ |
(2,242 |
) |
|
$ |
(257 |
) |
|
$ |
(2,499 |
) |
|
$ |
(1,795 |
) |
|
$ |
525 |
|
|
$ |
(1,270 |
) |
Borrowed funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
93,029 |
|
|
|
3.41 |
% |
|
|
106,724 |
|
|
|
4.50 |
% |
|
|
88,533 |
|
|
|
4.56 |
% |
|
|
(292 |
) |
|
|
(127 |
) |
|
|
(419 |
) |
|
|
(251 |
) |
|
|
47 |
|
|
|
(204 |
) |
Federal Home Loan Bank long-term
debt |
|
|
44,250 |
|
|
|
3.68 |
% |
|
|
50,532 |
|
|
|
3.66 |
% |
|
|
62,150 |
|
|
|
3.65 |
% |
|
|
3 |
|
|
|
(63 |
) |
|
|
(60 |
) |
|
|
5 |
|
|
|
(158 |
) |
|
|
(153 |
) |
Other long-term debt |
|
|
20,620 |
|
|
|
8.01 |
% |
|
|
20,620 |
|
|
|
8.45 |
% |
|
|
30,930 |
|
|
|
8.56 |
% |
|
|
(22 |
) |
|
|
(5 |
) |
|
|
(27 |
) |
|
|
(42 |
) |
|
|
(199 |
) |
|
|
(242 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowed funds |
|
|
157,899 |
|
|
|
4.09 |
% |
|
|
177,876 |
|
|
|
4.72 |
% |
|
|
181,613 |
|
|
|
4.93 |
% |
|
|
(311 |
) |
|
|
(195 |
) |
|
|
(506 |
) |
|
|
(288 |
) |
|
|
(310 |
) |
|
|
(598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
|
2,610,927 |
|
|
|
2.97 |
% |
|
|
2,639,340 |
|
|
|
3.36 |
% |
|
|
2,588,526 |
|
|
|
3.32 |
% |
|
|
(2,553 |
) |
|
|
(452 |
) |
|
|
(3,005 |
) |
|
|
(2,083 |
) |
|
|
215 |
|
|
|
(1,868 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
379,240 |
|
|
|
|
|
|
|
399,304 |
|
|
|
|
|
|
|
401,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
31,681 |
|
|
|
|
|
|
|
23,915 |
|
|
|
|
|
|
|
22,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
276,815 |
|
|
|
|
|
|
|
276,269 |
|
|
|
|
|
|
|
286,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & shareholders’
equity |
|
$ |
3,298,663 |
|
|
|
|
|
|
$ |
3,338,828 |
|
|
|
|
|
|
$ |
3,299,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
|
$ |
28,249 |
|
|
|
|
|
|
$ |
29,079 |
|
|
|
|
|
|
$ |
30,403 |
|
|
|
|
|
|
$ |
(440 |
) |
|
$ |
(390 |
) |
|
$ |
(830 |
) |
|
$ |
(3,310 |
) |
|
$ |
1,156 |
|
|
$ |
(2,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread (1) |
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
3.34 |
% |
|
|
|
|
|
|
3.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (1) |
|
|
|
|
|
|
3.78 |
% |
|
|
|
|
|
|
3.79 |
% |
|
|
|
|
|
|
4.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are both included in gross loans.
FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Mar. 31, |
|
| |
|
2008 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
| ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY |
Balance at beginning of period |
|
$ |
29,057 |
|
|
$ |
29,136 |
|
|
$ |
28,060 |
|
|
$ |
27,407 |
|
|
$ |
27,386 |
|
Provision for loan and lease losses |
|
|
3,223 |
|
|
|
1,640 |
|
|
|
2,558 |
|
|
|
2,098 |
|
|
|
1,356 |
|
Gross charge-offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
545 |
|
|
|
1,433 |
|
|
|
1,008 |
|
|
|
920 |
|
|
|
746 |
|
Real estate — commercial |
|
|
806 |
|
|
|
465 |
|
|
|
76 |
|
|
|
176 |
|
|
|
146 |
|
Real estate — residential |
|
|
39 |
|
|
|
33 |
|
|
|
49 |
|
|
|
57 |
|
|
|
116 |
|
Installment |
|
|
564 |
|
|
|
522 |
|
|
|
471 |
|
|
|
604 |
|
|
|
741 |
|
Home equity |
|
|
651 |
|
|
|
285 |
|
|
|
189 |
|
|
|
149 |
|
|
|
139 |
|
All other |
|
|
498 |
|
|
|
304 |
|
|
|
304 |
|
|
|
224 |
|
|
|
265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross charge-offs |
|
|
3,103 |
|
|
|
3,042 |
|
|
|
2,097 |
|
|
|
2,130 |
|
|
|
2,153 |
|
Recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
144 |
|
|
|
342 |
|
|
|
145 |
|
|
|
246 |
|
|
|
269 |
|
Real estate — commercial |
|
|
3 |
|
|
|
632 |
|
|
|
124 |
|
|
|
48 |
|
|
|
58 |
|
Real estate — residential |
|
|
11 |
|
|
|
3 |
|
|
|
25 |
|
|
|
10 |
|
|
|
18 |
|
Installment |
|
|
315 |
|
|
|
242 |
|
|
|
263 |
|
|
|
288 |
|
|
|
346 |
|
Home equity |
|
|
0 |
|
|
|
19 |
|
|
|
12 |
|
|
|
25 |
|
|
|
76 |
|
All other |
|
|
68 |
|
|
|
85 |
|
|
|
46 |
|
|
|
68 |
|
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recoveries |
|
|
541 |
|
|
|
1,323 |
|
|
|
615 |
|
|
|
685 |
|
|
|
818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs |
|
|
2,562 |
|
|
|
1,719 |
|
|
|
1,482 |
|
|
|
1,445 |
|
|
|
1,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance for loan and lease losses |
|
$ |
29,718 |
|
|
$ |
29,057 |
|
|
$ |
29,136 |
|
|
$ |
28,060 |
|
|
$ |
27,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) |
Commercial |
|
|
0.21 |
% |
|
|
0.56 |
% |
|
|
0.45 |
% |
|
|
0.37 |
% |
|
|
0.28 |
% |
Real estate — commercial |
|
|
0.46 |
% |
|
|
(0.10 |
%) |
|
|
(0.03 |
%) |
|
|
0.08 |
% |
|
|
0.06 |
% |
Real estate — residential |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
Installment |
|
|
0.75 |
% |
|
|
0.76 |
% |
|
|
0.53 |
% |
|
|
0.74 |
% |
|
|
0.85 |
% |
Home equity |
|
|
1.04 |
% |
|
|
0.43 |
% |
|
|
0.29 |
% |
|
|
0.21 |
% |
|
|
0.11 |
% |
All other |
|
|
0.92 |
% |
|
|
0.48 |
% |
|
|
0.62 |
% |
|
|
0.44 |
% |
|
|
0.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs |
|
|
0.40 |
% |
|
|
0.26 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS |
Nonaccrual loans
Commercial |
|
$ |
3,952 |
|
|
$ |
2,677 |
|
|
$ |
3,782 |
|
|
$ |
6,812 |
|
|
$ |
2,529 |
|
Real estate — commercial |
|
|
4,415 |
|
|
|
5,965 |
|
|
|
5,343 |
|
|
|
4,140 |
|
|
|
4,947 |
|
Real estate — residential |
|
|
4,529 |
|
|
|
3,063 |
|
|
|
2,147 |
|
|
|
1,694 |
|
|
|
1,311 |
|
Installment |
|
|
544 |
|
|
|
734 |
|
|
|
745 |
|
|
|
681 |
|
|
|
920 |
|
Home equity |
|
|
1,221 |
|
|
|
1,662 |
|
|
|
1,117 |
|
|
|
1,048 |
|
|
|
1,038 |
|
All other |
|
|
30 |
|
|
|
12 |
|
|
|
8 |
|
|
|
21 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans |
|
|
14,691 |
|
|
|
14,113 |
|
|
|
13,142 |
|
|
|
14,396 |
|
|
|
10,765 |
|
Restructured loans |
|
|
562 |
|
|
|
567 |
|
|
|
574 |
|
|
|
581 |
|
|
|
588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
|
|
15,253 |
|
|
|
14,680 |
|
|
|
13,716 |
|
|
|
14,977 |
|
|
|
11,353 |
|
Other real estate owned (OREO) |
|
|
2,368 |
|
|
|
2,636 |
|
|
|
3,124 |
|
|
|
2,023 |
|
|
|
2,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
|
17,621 |
|
|
|
17,316 |
|
|
|
16,840 |
|
|
|
17,000 |
|
|
|
14,025 |
|
Accruing loans past due 90 days or more |
|
|
372 |
|
|
|
313 |
|
|
|
222 |
|
|
|
165 |
|
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total underperforming assets |
|
$ |
17,993 |
|
|
$ |
17,629 |
|
|
$ |
17,062 |
|
|
$ |
17,165 |
|
|
$ |
14,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total classified assets |
|
$ |
55,302 |
|
|
$ |
49,372 |
|
|
$ |
53,997 |
|
|
$ |
49,263 |
|
|
$ |
50,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CREDIT QUALITY RATIOS |
Allowance for loan and lease losses to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
|
202.29 |
% |
|
|
205.89 |
% |
|
|
221.70 |
% |
|
|
194.92 |
% |
|
|
254.59 |
% |
Nonperforming loans |
|
|
194.83 |
% |
|
|
197.94 |
% |
|
|
212.42 |
% |
|
|
187.35 |
% |
|
|
241.41 |
% |
Total ending loans |
|
|
1.14 |
% |
|
|
1.12 |
% |
|
|
1.12 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
Nonperforming loans to total loans |
|
|
0.58 |
% |
|
|
0.56 |
% |
|
|
0.53 |
% |
|
|
0.59 |
% |
|
|
0.45 |
% |
Nonperforming assets to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending loans, plus OREO |
|
|
0.67 |
% |
|
|
0.67 |
% |
|
|
0.65 |
% |
|
|
0.67 |
% |
|
|
0.56 |
% |
Total assets |
|
|
0.53 |
% |
|
|
0.51 |
% |
|
|
0.51 |
% |
|
|
0.52 |
% |
|
|
0.42 |
% |
FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Mar. 31, |
|
| |
|
2008 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
|
2007 |
|
PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High |
|
$ |
13.81 |
|
|
$ |
13.89 |
|
|
$ |
15.12 |
|
|
$ |
15.72 |
|
|
$ |
16.76 |
|
Low |
|
$ |
10.19 |
|
|
$ |
10.12 |
|
|
$ |
10.76 |
|
|
$ |
14.43 |
|
|
$ |
14.83 |
|
Close |
|
$ |
13.45 |
|
|
$ |
11.40 |
|
|
$ |
12.78 |
|
|
$ |
14.99 |
|
|
$ |
15.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding — basic |
|
|
37,066,754 |
|
|
|
37,370,618 |
|
|
|
38,383,228 |
|
|
|
38,965,409 |
|
|
|
39,121,105 |
|
Average shares outstanding — diluted |
|
|
37,431,918 |
|
|
|
37,370,650 |
|
|
|
38,383,228 |
|
|
|
38,967,061 |
|
|
|
39,135,637 |
|
Ending shares outstanding |
|
|
37,488,229 |
|
|
|
37,367,808 |
|
|
|
37,405,433 |
|
|
|
38,883,083 |
|
|
|
39,001,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL |
|
Preliminary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Capital |
|
$ |
272,600 |
|
|
$ |
274,046 |
|
|
$ |
269,961 |
|
|
$ |
295,996 |
|
|
$ |
298,020 |
|
Tier 1 Ratio |
|
|
10.20 |
% |
|
|
10.29 |
% |
|
|
10.18 |
% |
|
|
11.13 |
% |
|
|
11.57 |
% |
Total Capital |
|
$ |
302,318 |
|
|
$ |
303,103 |
|
|
$ |
299,097 |
|
|
$ |
324,056 |
|
|
$ |
325,550 |
|
Total Capital Ratio |
|
|
11.31 |
% |
|
|
11.38 |
% |
|
|
11.27 |
% |
|
|
12.18 |
% |
|
|
12.64 |
% |
Total Capital in excess of minimum
requirement |
|
$ |
88,539 |
|
|
$ |
90,062 |
|
|
$ |
86,857 |
|
|
$ |
111,263 |
|
|
$ |
119,533 |
|
Total Risk-Adjusted Assets |
|
$ |
2,672,242 |
|
|
$ |
2,663,007 |
|
|
$ |
2,652,999 |
|
|
$ |
2,659,915 |
|
|
$ |
2,575,218 |
|
Leverage Ratio |
|
|
8.32 |
% |
|
|
8.26 |
% |
|
|
8.21 |
% |
|
|
9.04 |
% |
|
|
9.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending shareholders’ equity to ending
assets |
|
|
8.36 |
% |
|
|
8.21 |
% |
|
|
8.16 |
% |
|
|
8.53 |
% |
|
|
8.54 |
% |
Ending tangible shareholders’ equity
to ending tangible assets |
|
|
7.55 |
% |
|
|
7.41 |
% |
|
|
7.35 |
% |
|
|
7.71 |
% |
|
|
7.73 |
% |
Average shareholders’ equity to
average assets |
|
|
8.39 |
% |
|
|
8.27 |
% |
|
|
8.34 |
% |
|
|
8.58 |
% |
|
|
8.68 |
% |
Average tangible shareholders’ equity
to average tangible assets |
|
|
7.58 |
% |
|
|
7.47 |
% |
|
|
7.53 |
% |
|
|
7.76 |
% |
|
|
7.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPURCHASE PROGRAM (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares repurchased |
|
|
0 |
|
|
|
34,300 |
|
|
|
1,469,700 |
|
|
|
252,000 |
|
|
|
244,000 |
|
Average share repurchase price |
|
$ |
0.00 |
|
|
$ |
13.52 |
|
|
$ |
13.00 |
|
|
$ |
15.07 |
|
|
$ |
16.11 |
|
Total cost of shares repurchased |
|
$ |
0 |
|
|
$ |
464 |
|
|
$ |
19,105 |
|
|
$ |
3,797 |
|
|
$ |
3,931 |
|
(1) Represents share repurchases as part of publicly announced plans.
