EXHIBIT 99.1
July 20, 2004
First Financial Bancorp Reports Second-Quarter Earnings
HAMILTON, Ohio – First Financial Bancorp (Nasdaq: FFBC) chairman of the board, Bruce E. Leep, today announced second-quarter 2004 earnings of $10,337,000 or 24 cents in diluted earnings per share, compared to $10,610,000 or 24 cents in diluted earnings per share for the same period in 2003. Bancorp also announced year-to-date earnings of $20,285,000 or 46 cents in diluted earnings per share, compared to $21,241,000 or 47 cents in diluted earnings per share for the same period in 2003. This represents a 2.13 percent decrease in year-to-date earnings per share.
Return on assets for the second quarter was 1.06 percent for 2004, compared to 1.11 percent for the same period in 2003. Return on average shareholders’ equity was 11.40 percent for the second quarter of 2004, versus 11.46 percent for the comparable period in 2003. Year-to-date return on assets was 1.05 percent, compared to 1.13 percent in 2003, while return on average shareholders’ equity was 11.14 percent versus 11.49 percent.
“While we continue to work diligently to sign on a new chief executive officer, we remain focused on moving the company forward,”Leep said.“Second-quarter earnings were comparable to last year and again exceeded analysts’ consensus estimates. We are encouraged by some positive indicators in the quarter.
“Net interest margin remained relatively stable, while credit quality continued to improve significantly. Underperforming assets have decreased by 31 percent since June of 2003, while charge-offs for the second quarter were at their lowest level in four years.
“Additionally on July 16, Bancorp completed another phase of our affiliate regionalization plan and a branch divestiture. We continue to implement strategies such as these to improve the company.”
(The preceding overview of First Financial Bancorp’s earnings is supplemented with the following detail:)
Net Interest Income:
Net interest income for the second quarter of 2004 was $1.2 million less than in the second quarter of 2003, a decline of 3.17 percent. The major contributing factor to the decline in net interest income was net interest margin compression Bancorp experienced during 2003 due to the asset-sensitive position of Bancorp’s balance sheet. This margin compression was the result of the continued downward repricing of assets without a like decrease in deposit liability rates. The net interest margin began to stabilize in the fourth quarter of 2003 and this positive trend has continued in 2004. Net interest income on a linked quarter basis (second quarter 2004 compared to first quarter 2004) remained relatively stable decreasing by only $157,000 or 0.43 percent. Net interest income for 2004 on a year-to-date basis decreased $2.3 million or 3.03 percent from the comparable period in 2003. Bancorp’s net interest margin decreased to 3.98 percent in the second quarter of 2004 from 4.17 percent in the second quarter of 2003. Year-to-date net interest margin was 3.99 percent compared to 4.27 percent in 2003. Given the Federal Reserve’s 25-basis-point increase in rates on June 30, 2004, Bancorp expects a continued stable net interest margin with potential for improvement depending on economic and competitive conditions.
Average outstanding loan balances for the second quarter of 2004 increased 1.68% and year-to-date average loan balances increased 1.80% from the comparable periods a year ago. This increase was achieved even though Bancorp sold approximately $42.2 million of loans since the second quarter of 2003 related to: (1) the sale of a banking center in December of 2003, (2) the sale of distressed loans in December of 2003, and (3) the sale of mobile home loans which closed in the first quarter of 2004. The primary area of loan growth has been in the commercial real estate category. On a linked-quarter basis, average outstanding loan balances were 1.39 percent higher, reflecting growth in commercial and residential real estate, installment, and real estate construction loans as demand improved primarily in Bancorp’s southwestern Ohio market.
Average deposit balances for the second quarter decreased $23.9 million or 0.81 percent and year-to-date average deposits were relatively flat from the comparable periods a year ago. Deposit balances were impacted by the sale of two banking centers since the first quarter of 2003, which reduced deposit balances by $53 million. Bancorp also opened three new banking centers in growing markets in 2003 — two in the fourth quarter — and an additional new banking center in the second quarter of 2004.
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Credit Quality:
The provision for loan loss expense for the second quarter of 2004 was $2.2 million compared to $3.9 million for the same period in 2003. Net charge-offs of $2.1 million for the second quarter were $1.3 million less than the $3.4 million in net charge-offs for the second quarter of 2003. Year-to-date provision expense was $4.8 million or $2.3 million less than 2003. Year-to-date net charge-offs were $4.8 million in 2004, down $1.7 million from the $6.5 million recorded in 2003. Improvements in commercial loans charged-off — partially offset by higher consumer charge-offs — and continued strong recoveries on commercial and consumer loans positively impacted net charge-offs for both the quarter and year-to-date. The percentage of net charge-offs to average loans for the second quarter of 2004 was 0.29 percent compared to 0.48 percent for the same period in 2003. The net charge-offs percentage for the second quarter of 2004 was at the lowest level since June of 2000. The percentage of net charge-offs to average loans was 0.34 percent for year-to-date 2004, compared to 0.47 percent for the same period in 2003.
Bancorp continued to maintain appropriate reserves with an allowance to ending loans ratio of 1.65 percent at quarter end versus 1.73 percent the same quarter a year ago. It is management’s belief that the allowance for loan losses is adequate to absorb inherent credit losses. The nonperforming assets to ending loans ratio decreased to 0.96 percent as of June 30, 2004, from 1.33 percent as of the end of the second quarter 2003. This is also a significant improvement from the linked-quarter percentage of 1.16 percent.
Total nonperforming assets — which includes nonaccrual loans, restructured loans, and other real estate owned — decreased 26.19 percent to $27.9 million at the end of the second quarter of 2004 from $37.8 million at June 30, 2003. Nonaccrual loans decreased $5.5 million, and restructured loans decreased $4.3 million. Other real estate owned remained relatively constant, decreasing by $151,000.
Loans delinquent over 90 days decreased 79.34 percent to $721,000 at the end of the second quarter of 2004 from $3.5 million at the end of the second quarter of 2003. This represents Bancorp’s lowest level of 90-days-past-due loans in over five years.
On a linked-quarter basis, total nonperforming assets decreased $5.2 million or 15.61 percent. Total underperforming assets on a linked quarter basis decreased 16.81 percent as loans delinquent over 90 days decreased by $624,000.
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Bancorp’s level of nonperforming assets has improved over the last several quarters. This improvement in credit quality has been positively influenced by signs of economic recovery, strategies such as the fourth-quarter 2003 distressed loan sale, and improved credit risk disciplines. Given the current economic environment, Bancorp expects continued stable to improving credit quality trends through 2004 although moderate fluctuations could occur as Bancorp continues to work through credit issues.
Noninterest Income:
Second quarter 2004 noninterest income was $14,905,000, an increase of 4.92 percent from the second quarter of 2003. Service charge income decreased $129,000 or 2.62 percent from the same quarter a year ago, largely due to the sale of $53 million in retail deposit balances since the second quarter of 2003. Trust revenues for the second quarter of 2004 increased 14.42 percent or $508,000 more than the comparable period last year primarily as a result of year-over-year market value improvements. The other category of noninterest income increased $285,000 or 4.92 percent from a year ago. Included in other noninterest income for the second quarter of 2004 was the recapture of impairment charges on the mortgage-servicing assets of approximately $441,000 compared with impairment charges of $440,000 for the second quarter of 2003. The positive swing in this category was offset by a decrease in gains on sale of mortgage loans of $973,000 to $408,000 in the second quarter of 2004 from $1,381,000 in the comparable period a year ago.
Year-to-date noninterest income increased 4.60 percent to $29,346,000 in 2004. This increase was primarily the result of an increase in trust fees, additional life insurance income, and increased brokerage fees. Recapture of impairment on the mortgage-servicing assets was approximately $687,000 in 2004 compared with impairment charges of $628,000 in 2003. This positive swing was also offset on a year-to-date basis by a decrease in gains on sale of mortgage loans of $1,815,000 to $697,000 in 2004 from $2,512,000 in the comparable period a year ago.
Noninterest Expense:
Total noninterest expense increased $1.6 million or 4.94 percent for the second quarter of 2004 from the second quarter of 2003. Salaries and employee benefits increased $1.0 million or 5.70 percent. Salary expense for the second quarter of 2004 increased $154,000 or 1.14 percent while employee benefits increased $874,000 or 19.44 percent. In the benefits category, the primary areas of increase were incentive bonus and pension expense. Net occupancy expenses for the second quarter of 2004 increased $152,000 or 8.37 percent as a result of increased building rent, depreciation, and related expenses. Data processing expense for the quarter increased $242,000 or 15.96 percent due primarily to a reclassification
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of certain credit-card and merchant processing expenses from other noninterest expense. Other noninterest expense on a quarterly and year-to-date basis was impacted by costs associated with the mobile home loan sale completed in the first quarter of 2004, direct consulting work in regard to Sarbanes-Oxley Section 404 internal control documentation and testing, and the executive search. Year-to-date noninterest expense for 2004 was $3.1 million or 4.81 percent more than 2003 as a result of higher salaries and employee benefits, net occupancy expenses, data processing, and other expense as discussed above.
Other Items:
As planned, the process of regionalization progressed on July 16, 2004, with the merger of Clyde Savings Bank and Indiana Lawrence Bank into the Community First Bank & Trust affiliate headquartered in Celina, Ohio. Concurrently, the $8 million Kewanna, Indiana, branch of Indiana Lawrence Bank was sold to Community State Bank of Royal Center, Indiana.
Bancorp repurchased 114,000 shares of its common stock during the second quarter of 2004 under a previously approved and ongoing program for general corporate purposes.
A $3.9 billion publicly owned bank holding company with over 4,000 shareholders, First Financial Bancorp currently operates 6 banking affiliates in Ohio, Michigan, Kentucky, and Indiana with a total of 102 retail banking centers, as well as an investment-advisor affiliate and an operations affiliate. Insurance services are offered through Flagstone Insurance and Financial Services.
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, 2003. Management’s analysis may contain 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, the strength of the local economies in which operations are conducted, 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 2003 Form 10-K.
First Financial Bancorp
P.O. Box 476
Hamilton, OH 45012
Analyst Contact: C. Douglas Lefferson
513-867-4993
doug.lefferson@ffbc-oh.com
Media Contact: Cheryl R. Lipp
513-867-4929
cheryl.lipp@comfirst.com
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FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL DATA
(Dollars in thousand, except per share)
(Unaudited)
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| | | Three months ended
| | Six months ended
June 30, |
| | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | |
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| | | 2004
| | 2004
| | 2003
| | 2003
| | 2003
| | 2004
| | 2003
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EARNINGS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 36,000 | | | $ | 36,157 | | | $ | 34,093 | | | $ | 36,373 | | | $ | 37,179 | | | $ | 72,157 | | | $ | 74,415 | |
| Net earnings | | | 10,337 | | | | 9,948 | | | | 8,841 | | | | 7,824 | | | | 10,610 | | | | 20,285 | | | | 21,241 | |
| Net earnings per share — basic | | $ | 0.24 | | | $ | 0.23 | | | $ | 0.20 | | | $ | 0.18 | | | $ | 0.24 | | | $ | 0.46 | | | $ | 0.48 | |
| Net earnings per share — diluted | | $ | 0.24 | | | $ | 0.23 | | | $ | 0.20 | | | $ | 0.18 | | | $ | 0.24 | | | $ | 0.46 | | | $ | 0.47 | |
KEY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.06 | % | | | 1.03 | % | | | 0.90 | % | | | 0.80 | % | | | 1.11 | % | | | 1.05 | % | | | 1.13 | % |
| Return on average shareholders’ equity | | | 11.40 | % | | | 10.88 | % | | | 9.62 | % | | | 8.46 | % | | | 11.46 | % | | | 11.14 | % | | | 11.49 | % |
| Average shareholders’ equity to average assets | | | 9.33 | % | | | 9.44 | % | | | 9.38 | % | | | 9.42 | % | | | 9.66 | % | | | 9.38 | % | | | 9.84 | % |
| Net interest margin | | | 3.98 | % | | | 4.00 | % | | | 3.74 | % | | | 3.98 | % | | | 4.17 | % | | | 3.99 | % | | | 4.27 | % |
| Net interest margin (fully tax equivalent) | | | 4.07 | % | | | 4.10 | % | | | 3.84 | % | | | 4.08 | % | | | 4.28 | % | | | 4.08 | % | | | 4.38 | % |
COMMON STOCK DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average basic shares outstanding | | | 43,868,314 | | | | 43,924,139 | | | | 43,993,558 | | | | 44,122,446 | | | | 44,486,775 | | | | 43,908,838 | | | | 44,689,019 | |
| Average diluted shares outstanding | | | 43,951,016 | | | | 43,967,599 | | | | 44,012,803 | | | | 44,160,906 | | | | 44,519,484 | | | | 43,971,919 | | | | 44,783,104 | |
| Ending shares outstanding | | | 43,810,651 | | | | 43,924,139 | | | | 43,939,018 | | | | 44,049,702 | | | | 44,277,529 | | | | 43,810,651 | | | | 44,277,529 | |
| Market price: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 18.47 | | | $ | 18.82 | | | $ | 16.92 | | | $ | 16.60 | | | $ | 17.00 | | | $ | 18.82 | | | $ | 17.19 | |
| Low | | $ | 15.61 | | | $ | 16.29 | | | $ | 15.14 | | | $ | 14.67 | | | $ | 15.00 | | | $ | 15.61 | | | $ | 15.00 | |
| Close | | $ | 17.72 | | | $ | 18.50 | | | $ | 15.95 | | | $ | 14.75 | | | $ | 15.83 | | | $ | 17.72 | | | $ | 15.83 | |
| Book value | | $ | 8.24 | | | $ | 8.44 | | | $ | 8.34 | | | $ | 8.34 | | | $ | 8.40 | | | $ | 8.24 | | | $ | 8.40 | |
| Common dividend declared | | $ | 0.15 | | | $ | 0.15 | | | $ | 0.15 | | | $ | 0.15 | | | $ | 0.15 | | | $ | 0.30 | | | $ | 0.30 | |
AVERAGE BALANCE SHEET ITEMS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans less unearned income | | $ | 2,859,043 | | | $ | 2,819,711 | | | $ | 2,805,667 | | | $ | 2,829,582 | | | $ | 2,811,848 | | | $ | 2,839,377 | | | $ | 2,789,036 | |
| Investment securities | | | 767,667 | | | | 799,823 | | | | 798,727 | | | | 778,365 | | | | 747,090 | | | | 783,745 | | | | 699,121 | |
| Other earning assets | | | 13,827 | | | | 12,279 | | | | 13,559 | | | | 15,845 | | | | 13,619 | | | | 13,053 | | | | 27,110 | |
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| Total earning assets | | | 3,640,537 | | | | 3,631,813 | | | | 3,617,953 | | | | 3,623,792 | | | | 3,572,557 | | | | 3,636,175 | | | | 3,515,267 | |
| Total assets | | | 3,907,566 | | | | 3,894,900 | | | | 3,886,012 | | | | 3,894,426 | | | | 3,841,251 | | | | 3,901,233 | | | | 3,786,303 | |
| Noninterest-bearing deposits | | | 405,098 | | | | 395,894 | | | | 399,611 | | | | 392,862 | | | | 406,730 | | | | 400,496 | | | | 411,749 | |
| Interest-bearing deposits | | | 2,514,194 | | | | 2,530,912 | | | | 2,553,934 | | | | 2,592,383 | | | | 2,536,477 | | | | 2,522,553 | | | | 2,512,180 | |
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| Total deposits | | | 2,919,292 | | | | 2,926,806 | | | | 2,953,545 | | | | 2,985,245 | | | | 2,943,207 | | | | 2,923,049 | | | | 2,923,929 | |
| Borrowings | | | 564,710 | | | | 542,380 | | | | 516,952 | | | | 486,825 | | | | 481,731 | | | | 553,545 | | | | 446,113 | |
| Shareholders’ equity | | | 364,574 | | | | 367,628 | | | | 364,653 | | | | 366,978 | | | | 371,219 | | | | 366,101 | | | | 372,719 | |
CREDIT QUALITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending allowance for loan losses | | $ | 47,824 | | | $ | 47,672 | | | $ | 47,771 | | | $ | 48,680 | | | $ | 48,876 | | | $ | 47,824 | | | $ | 48,876 | |
| Nonperforming assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual | | | 22,723 | | | | 26,586 | | | | 25,980 | | | | 28,374 | | | | 28,210 | | | | 22,723 | | | | 28,210 | |
| Restructured | | | 2,936 | | | | 3,373 | | | | 3,821 | | | | 6,532 | | | | 7,188 | | | | 2,936 | | | | 7,188 | |
| OREO | | | 2,215 | | | | 3,070 | | | | 3,207 | | | | 3,054 | | | | 2,366 | | | | 2,215 | | | | 2,366 | |
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| Total nonperforming assets | | | 27,874 | | | | 33,029 | | | | 33,008 | | | | 37,960 | | | | 37,764 | | | | 27,874 | | | | 37,764 | |
| Loans delinquent over 90 days | | | 721 | | | | 1,345 | | | | 1,872 | | | | 3,186 | | | | 3,490 | | | | 721 | | | | 3,490 | |
| Gross charge-offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial real estate | | | (105 | ) | | | (631 | ) | | | (3,377 | ) | | | (300 | ) | | | (424 | ) | | | (736 | ) | | | (536 | ) |
| Commercial loans and leases | | | (560 | ) | | | (1,036 | ) | | | (3,650 | ) | | | (2,771 | ) | | | (1,800 | ) | | | (1,596 | ) | | | (3,499 | ) |
| Consumer | | | (2,622 | ) | | | (2,588 | ) | | | (2,447 | ) | | | (2,351 | ) | | | (1,957 | ) | | | (5,210 | ) | | | (4,311 | ) |
| All other | | | (2 | ) | | | (27 | ) | | | (8 | ) | | | (38 | ) | | | (18 | ) | | | (29 | ) | | | (18 | ) |
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| Total gross charge-offs | | | (3,289 | ) | | | (4,282 | ) | | | (9,482 | ) | | | (5,460 | ) | | | (4,199 | ) | | | (7,571 | ) | | | (8,364 | ) |
| Recoveries: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial real estate | | | 0 | | | | 34 | | | | 83 | | | | 5 | | | | 45 | | | | 34 | | | | 50 | |
| Commercial loans and leases | | | 467 | | | | 538 | | | | 561 | | | | 316 | | | | 229 | | | | 1,005 | | | | 661 | |
| Consumer | | | 723 | | | | 1,011 | | | | 498 | | | | 576 | | | | 553 | | | | 1,734 | | | | 1,195 | |
| All other | | | 8 | | | | 0 | | | | 9 | | | | 3 | | | | 1 | | | | 8 | | | | 1 | |
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| Total recoveries | | | 1,198 | | | | 1,583 | | | | 1,151 | | | | 900 | | | | 828 | | | | 2,781 | | | | 1,907 | |
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| Total net charge-offs | | | (2,091 | ) | | | (2,699 | ) | | | (8,331 | ) | | | (4,560 | ) | | | (3,371 | ) | | | (4,790 | ) | | | (6,457 | ) |
CREDIT QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance to ending loans, net of unearned income | | | 1.65 | % | | | 1.68 | % | | | 1.71 | % | | | 1.73 | % | | | 1.73 | % | | | 1.65 | % | | | 1.73 | % |
| Nonperforming assets to ending loans, net of unearned income plus OREO | | | 0.96 | % | | | 1.16 | % | | | 1.18 | % | | | 1.34 | % | | | 1.33 | % | | | 0.96 | % | | | 1.33 | % |
| 90 days past due to loans, net of unearned income | | | 0.02 | % | | | 0.05 | % | | | 0.07 | % | | | 0.11 | % | | | 0.12 | % | | | 0.02 | % | | | 0.12 | % |
| Net charge-offs to average loans, net of unearned income | | | 0.29 | % | | | 0.38 | % | | | 1.18 | % | | | 0.64 | % | | | 0.48 | % | | | 0.34 | % | | | 0.47 | % |
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended,
| | Six months ended,
June 30, |
| | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | |
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| | | 2004
| | 2004
| | 2003
| | 2003
| | 2003
| | 2004
| | 2003
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| Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 42,461 | | | $ | 42,522 | | | $ | 41,393 | | | $ | 45,256 | | | $ | 46,418 | | | $ | 84,983 | | | $ | 93,122 | |
| Investment securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 6,241 | | | | 6,813 | | | | 6,060 | | | | 5,263 | | | | 5,220 | | | | 13,054 | | | | 10,478 | |
| Tax-exempt | | | 1,381 | | | | 1,449 | | | | 1,555 | | | | 1,579 | | | | 1,632 | | | | 2,830 | | | | 3,296 | |
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| Total investment securities interest | | | 7,622 | | | | 8,262 | | | | 7,615 | | | | 6,842 | | | | 6,852 | | | | 15,884 | | | | 13,774 | |
| Interest-bearing deposits with other banks | | | 34 | | | | 28 | | | | 36 | | | | 26 | | | | 28 | | | | 62 | | | | 79 | |
| Federal funds sold and securities purchased under agreements to resell | | | 9 | | | | 11 | | | | 11 | | | | 24 | | | | 37 | | | | 20 | | | | 111 | |
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| Total interest income | | | 50,126 | | | | 50,823 | | | | 49,055 | | | | 52,148 | | | | 53,335 | | | | 100,949 | | | | 107,086 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 9,037 | | | | 9,662 | | | | 10,214 | | | | 10,692 | | | | 11,396 | | | | 18,699 | | | | 23,480 | |
| Short-term borrowings | | | 526 | | | | 499 | | | | 471 | | | | 443 | | | | 530 | | | | 1,025 | | | | 910 | |
| Long-term borrowings | | | 4,226 | | | | 4,163 | | | | 4,130 | | | | 4,161 | | | | 4,112 | | | | 8,389 | | | | 8,043 | |
| Subordinated debentures and capital securities | | | 337 | | | | 342 | | | | 147 | | | | 479 | | | | 118 | | | | 679 | | | | 238 | |
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| Total interest expense | | | 14,126 | | | | 14,666 | | | | 14,962 | | | | 15,775 | | | | 16,156 | | | | 28,792 | | | | 32,671 | |
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| Net interest income | | | 36,000 | | | | 36,157 | | | | 34,093 | | | | 36,373 | | | | 37,179 | | | | 72,157 | | | | 74,415 | |
| Provision for loan losses | | | 2,243 | | | | 2,600 | | | | 7,422 | | | | 4,364 | | | | 3,942 | | | | 4,843 | | | | 7,156 | |
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| Net interest income after provision for loan losses | | | 33,757 | | | | 33,557 | | | | 26,671 | | | | 32,009 | | | | 33,237 | | | | 67,314 | | | | 67,259 | |
| Noninterest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 4,794 | | | | 4,613 | | | | 4,917 | | | | 4,984 | | | | 4,923 | | | | 9,407 | | | | 9,521 | |
| Trust revenues | | | 4,030 | | | | 3,892 | | | | 3,648 | | | | 3,623 | | | | 3,522 | | | | 7,922 | | | | 7,229 | |
| Investment securities gains (losses) | | | (1 | ) | | | (2 | ) | | | 4 | | | | 28 | | | | (36 | ) | | | (3 | ) | | | (8 | ) |
| Other | | | 6,082 | | | | 5,938 | | | | 10,458 | | | | 6,494 | | | | 5,797 | | | | 12,020 | | | | 11,314 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total noninterest income | | | 14,905 | | | | 14,441 | | | | 19,027 | | | | 15,129 | | | | 14,206 | | | | 29,346 | | | | 28,056 | |
| Noninterest expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 19,056 | | | | 18,519 | | | | 18,625 | | | | 21,664 | | | | 18,028 | | | | 37,575 | | | | 36,219 | |
| Net occupancy | | | 1,968 | | | | 2,205 | | | | 1,872 | | | | 1,899 | | | | 1,816 | | | | 4,173 | | | | 3,894 | |
| Furniture and equipment | | | 1,800 | | | | 1,804 | | | | 1,701 | | | | 1,752 | | | | 1,847 | | | | 3,604 | | | | 3,648 | |
| Data processing | | | 1,758 | | | | 1,863 | | | | 2,037 | | | | 1,690 | | | | 1,516 | | | | 3,621 | | | | 3,003 | |
| Deposit insurance | | | 166 | | | | 171 | | | | 140 | | | | 147 | | | | 150 | | | | 337 | | | | 250 | |
| State taxes | | | 344 | | | | 344 | | | | 442 | | | | 432 | | | | 434 | | | | 688 | | | | 894 | |
| Amortization of intangibles | | | 220 | | | | 216 | | | | 205 | | | | 207 | | | | 211 | | | | 436 | | | | 412 | |
| Other | | | 8,077 | | | | 8,122 | | | | 8,458 | | | | 7,948 | | | | 7,815 | | | | 16,199 | | | | 15,256 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total noninterest expenses | | | 33,389 | | | | 33,244 | | | | 33,480 | | | | 35,739 | | | | 31,817 | | | | 66,633 | | | | 63,576 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 15,273 | | | | 14,754 | | | | 12,218 | | | | 11,399 | | | | 15,626 | | | | 30,027 | | | | 31,739 | |
| Income tax expense | | | 4,936 | | | | 4,806 | | | | 3,377 | | | | 3,575 | | | | 5,016 | | | | 9,742 | | | | 10,498 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net earnings | | $ | 10,337 | | | $ | 9,948 | | | $ | 8,841 | | | $ | 7,824 | | | $ | 10,610 | | | $ | 20,285 | | | $ | 21,241 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
ADDITIONAL DATA — FULLY TAX EQUIVALENT NET INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income | | $ | 50,126 | | | $ | 50,823 | | | $ | 49,055 | | | $ | 52,148 | | | $ | 53,335 | | | $ | 100,949 | | | $ | 107,086 | |
| Tax equivalent adjustment | | | 819 | | | | 860 | | | | 885 | | | | 900 | | | | 918 | | | | 1,679 | | | | 1,856 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Interest income — tax equivalent | | | 50,945 | | | | 51,683 | | | | 49,940 | | | | 53,048 | | | | 54,253 | | | | 102,628 | | | | 108,942 | |
| Interest expense | | | 14,126 | | | | 14,666 | | | | 14,962 | | | | 15,775 | | | | 16,156 | | | | 28,792 | | | | 32,671 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income — tax equivalent | | $ | 36,819 | | | $ | 37,017 | | | $ | 34,978 | | | $ | 37,273 | | | $ | 38,097 | | | $ | 73,836 | | | $ | 76,271 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Jun. 30, | | Dec. 31, | | Jun. 30, |
| | | 2004
| | 2003
| | 2003
|
ASSETS | | | | | | | | | | | | |
| Cash and due from banks | | $ | 142,307 | | | $ | 183,612 | | | $ | 170,491 | |
| Interest-bearing deposits with other banks | | | 3,534 | | | | 5,014 | | | | 3,053 | |
| Federal funds sold and securities purchased under agreements to resell | | | 419 | | | | 607 | | | | 1,155 | |
| Investment securities, held-to-maturity | | | 13,090 | | | | 18,399 | | | | 20,615 | |
| Investment securities, available-for-sale | | | 728,016 | | | | 794,762 | | | | 742,004 | |
| Loans | | | | | | | | | | | | |
| Commercial | | | 677,355 | | | | 666,315 | | | | 697,975 | |
| Real estate-construction | | | 79,386 | | | | 73,260 | | | | 74,456 | |
| Real estate-mortgage | | | 1,535,508 | | | | 1,466,153 | | | | 1,465,999 | |
| Installment | | | 579,010 | | | | 560,061 | | | | 556,322 | |
| Credit card | | | 20,694 | | | | 21,680 | | | | 20,294 | |
| Lease financing | | | 8,729 | | | | 12,241 | | | | 16,460 | |
| | | |
| | | |
| | | |
| |
| Total loans | | | 2,900,682 | | | | 2,799,710 | | | | 2,831,506 | |
| Less | | | | | | | | | | | | |
| Unearned income | | | 27 | | | | 86 | | | | 226 | |
| Allowance for loan losses | | | 47,824 | | | | 47,771 | | | | 48,876 | |
| | | |
| | | |
| | | |
| |
| Net loans | | | 2,852,831 | | | | 2,751,853 | | | | 2,782,404 | |
| Premises and equipment | | | 60,314 | | | | 59,050 | | | | 56,852 | |
| Goodwill | | | 28,444 | | | | 27,379 | | | | 27,379 | |
| Other intangibles | | | 8,065 | | | | 7,530 | | | | 8,675 | |
| Deferred income taxes receivable | | | 12,075 | | | | 6,227 | | | | 5,426 | |
| Other assets | | | 99,657 | | | | 101,629 | | | | 94,350 | |
| | | |
| | | |
| | | |
| |
Total Assets | | $ | 3,948,752 | | | $ | 3,956,062 | | | $ | 3,912,404 | |
| | | |
| | | |
| | | |
| |
LIABILITIES | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | |
| Noninterest-bearing | | $ | 407,107 | | | $ | 414,785 | | | $ | 434,183 | |
| Interest-bearing | | | 2,512,545 | | | | 2,530,880 | | | | 2,544,196 | |
| | | |
| | | |
| | | |
| |
| Total deposits | | | 2,919,652 | | | | 2,945,665 | | | | 2,978,379 | |
| Short-term borrowings | | | 256,511 | | | | 258,909 | | | | 191,709 | |
| Long-term borrowings | | | 347,526 | | | | 322,979 | | | | 325,472 | |
| Junior subordinated debentures owed to unconsolidated subsidiary trusts | | | 30,930 | | | | 0 | | | | 0 | |
| Corporation-obligated mandatorily redeemable capital securities of subsidiary trust | | | 0 | | | | 30,000 | | | | 10,000 | |
| Accrued interest and other liabilities | | | 32,930 | | | | 32,026 | | | | 34,761 | |
| | | |
| | | |
| | | |
| |
Total Liabilities | | | 3,587,549 | | | | 3,589,579 | | | | 3,540,321 | |
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Common stock | | | 395,584 | | | | 395,752 | | | | 395,896 | |
| Retained earnings | | | 57,443 | | | | 50,325 | | | | 46,867 | |
| Accumulated comprehensive income | | | (7,273 | ) | | | 2,344 | | | | 7,880 | |
| Restricted stock awards | | | (3,865 | ) | | | (3,397 | ) | | | (5,340 | ) |
| Treasury stock, at cost | | | (80,686 | ) | | | (78,541 | ) | | | (73,220 | ) |
| | | |
| | | |
| | | |
| |
Total Shareholders’ Equity | | | 361,203 | | | | 366,483 | | | | 372,083 | |
| | | |
| | | |
| | | |
| |
Total Liabilities and Shareholders’ Equity | | $ | 3,948,752 | | | $ | 3,956,062 | | | $ | 3,912,404 | |
| | | |
| | | |
| | | |
| |
ADDITIONAL DATA — RISK BASED CAPITAL
| | | | | | | | | | | | | | | | | | | | | |
| | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, |
| | | 2004
| | 2004
| | 2003
| | 2003
| | 2003
|
| Tier 1 Capital | | $ | 361,597 | | | $ | 359,134 | | | $ | 358,616 | | | $ | 358,292 | | | $ | 338,933 | |
| Tier 1 Ratio | | | 12.98 | % | | | 13.19 | % | | | 13.20 | % | | | 12.92 | % | | | 12.50 | % |
| Total Capital | | $ | 396,580 | | | $ | 393,331 | | | $ | 392,735 | | | $ | 393,122 | | | $ | 373,011 | |
| Total Capital Ratio | | | 14.24 | % | | | 14.45 | % | | | 14.46 | % | | | 14.18 | % | | | 13.76 | % |
| Total Risk-Adjusted Assets | | $ | 2,785,789 | | | $ | 2,722,261 | | | $ | 2,715,858 | | | $ | 2,772,571 | | | $ | 2,711,426 | |
| Leverage Ratio | | | 9.33 | % | | | 9.30 | % | | | 9.30 | % | | | 9.28 | % | | | 8.90 | % |
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarterly Averages
| | Year-to-Date Averages
June 30, |
| | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | |
|
| | | 2004
| | 2004
| | 2003
| | 2003
| | 2003
| | 2004
| | 2003
|
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 115,009 | | | $ | 114,977 | | | $ | 117,810 | | | $ | 129,005 | | | $ | 127,405 | | | $ | 114,993 | | | $ | 133,842 | |
| Interest-bearing deposits with other banks | | | 10,422 | | | | 7,588 | | | | 9,252 | | | | 5,671 | | | | 7,235 | | | | 9,005 | | | | 8,259 | |
| Federal funds sold and securities purchased under agreements to resell | | | 3,405 | | | | 4,691 | | | | 4,307 | | | | 10,174 | | | | 6,384 | | | | 4,048 | | | | 18,851 | |
| Investment securities | | | 767,667 | | | | 799,823 | | | | 798,727 | | | | 778,365 | | | | 747,090 | | | | 783,745 | | | | 699,121 | |
| Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 667,796 | | | | 669,188 | | | | 658,205 | | | | 695,980 | | | | 700,439 | | | | 668,492 | | | | 700,861 | |
| Real estate-construction | | | 77,963 | | | | 76,193 | | | | 68,621 | | | | 69,072 | | | | 77,879 | | | | 77,078 | | | | 82,149 | |
| Real estate-mortgage | | | 1,520,659 | | | | 1,488,463 | | | | 1,480,587 | | | | 1,469,535 | | | | 1,443,940 | | | | 1,504,561 | | | | 1,416,288 | |
| Installment | | | 562,990 | | | | 554,374 | | | | 564,684 | | | | 559,600 | | | | 552,301 | | | | 558,682 | | | | 550,992 | |
| Credit card | | | 20,134 | | | | 20,274 | | | | 20,402 | | | | 20,169 | | | | 20,077 | | | | 20,204 | | | | 20,383 | |
| Lease financing | | | 9,538 | | | | 11,284 | | | | 13,276 | | | | 15,405 | | | | 17,488 | | | | 10,411 | | | | 18,693 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total loans | | | 2,859,080 | | | | 2,819,776 | | | | 2,805,775 | | | | 2,829,761 | | | | 2,812,124 | | | | 2,839,428 | | | | 2,789,366 | |
| Less | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unearned income | | | 37 | | | | 65 | | | | 108 | | | | 179 | | | | 276 | | | | 51 | | | | 330 | |
| Allowance for loan losses | | | 47,873 | | | | 47,877 | | | | 48,754 | | | | 48,849 | | | | 48,168 | | | | 47,875 | | | | 48,395 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net loans | | | 2,811,170 | | | | 2,771,834 | | | | 2,756,913 | | | | 2,780,733 | | | | 2,763,680 | | | | 2,791,502 | | | | 2,740,641 | |
| Premises and equipment | | | 60,155 | | | | 59,271 | | | | 58,863 | | | | 57,825 | | | | 56,675 | | | | 59,713 | | | | 56,572 | |
| Deferred income tax | | | 8,374 | | | | 5,570 | | | | 8,457 | | | | 7,969 | | | | 5,555 | | | | 6,972 | | | | 4,761 | |
| Other assets | | | 131,364 | | | | 131,146 | | | | 131,683 | | | | 124,684 | | | | 127,227 | | | | 131,255 | | | | 124,256 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total Assets | | $ | 3,907,566 | | | $ | 3,894,900 | | | $ | 3,886,012 | | | $ | 3,894,426 | | | $ | 3,841,251 | | | $ | 3,901,233 | | | $ | 3,786,303 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | $ | 167,560 | | | $ | 193,256 | | | $ | 182,501 | | | $ | 212,102 | | | $ | 165,275 | | | | 180,408 | | | | 231,550 | |
| Savings | | | 1,057,305 | | | | 1,030,709 | | | | 1,046,180 | | | | 1,023,110 | | | | 1,001,121 | | | | 1,044,007 | | | | 926,409 | |
| Time | | | 1,289,329 | | | | 1,306,947 | | | | 1,325,253 | | | | 1,357,171 | | | | 1,370,081 | | | | 1,298,138 | | | | 1,354,221 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total interest-bearing deposits | | | 2,514,194 | | | | 2,530,912 | | | | 2,553,934 | | | | 2,592,383 | | | | 2,536,477 | | | | 2,522,553 | | | | 2,512,180 | |
| Noninterest-bearing | | | 405,098 | | | | 395,894 | | | | 399,611 | | | | 392,862 | | | | 406,730 | | | | 400,496 | | | | 411,749 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total deposits | | | 2,919,292 | | | | 2,926,806 | | | | 2,953,545 | | | | 2,985,245 | | | | 2,943,207 | | | | 2,923,049 | | | | 2,923,929 | |
| Borrowed funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 215,124 | | | | 209,166 | | | | 193,390 | | | | 161,742 | | | | 157,965 | | | | 212,145 | | | | 130,291 | |
| Long-term borrowings | | | 349,586 | | | | 333,214 | | | | 323,562 | | | | 325,083 | | | | 323,766 | | | | 341,400 | | | | 315,822 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total borrowed funds | | | 564,710 | | | | 542,380 | | | | 516,952 | | | | 486,825 | | | | 481,731 | | | | 553,545 | | | | 446,113 | |
| Junior subordinated debentures owed to unconsolidated subsidiary trusts | | | 30,930 | | | | 30,930 | | | | 0 | | | | 0 | | | | 0 | | | | 30,930 | | | | 0 | |
| Corporation-obligated mandatorily redeemable capital securities of subsidiary trust | | | 0 | | | | 0 | | | | 30,000 | | | | 26,956 | | | | 10,000 | | | | 0 | | | | 10,000 | |
| Accrued interest and other liabilities | | | 28,060 | | | | 27,156 | | | | 20,862 | | | | 28,422 | | | | 35,094 | | | | 27,608 | | | | 33,542 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total Liabilities | | | 3,542,992 | | | | 3,527,272 | | | | 3,521,359 | | | | 3,527,448 | | | | 3,470,032 | | | | 3,535,132 | | | | 3,413,584 | |
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common stock | | | 395,586 | | | | 395,648 | | | | 395,808 | | | | 395,894 | | | | 395,916 | | | | 395,617 | | | | 395,974 | |
| Retained earnings | | | 53,999 | | | | 51,165 | | | | 47,534 | | | | 48,022 | | | | 43,281 | | | | 52,582 | | | | 41,093 | |
| Accumulated comprehensive income | | | (1,199 | ) | | | 3,311 | | | | 2,587 | | | | 3,680 | | | | 7,501 | | | | 1,056 | | | | 7,938 | |
| Restricted stock awards | | | (4,124 | ) | | | (4,220 | ) | | | (3,619 | ) | | | (4,969 | ) | | | (5,613 | ) | | | (4,172 | ) | | | (5,619 | ) |
| Treasury stock, at cost | | | (79,688 | ) | | | (78,276 | ) | | | (77,657 | ) | | | (75,649 | ) | | | (69,866 | ) | | | (78,982 | ) | | | (66,667 | ) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total Shareholders’ Equity | | | 364,574 | | | | 367,628 | | | | 364,653 | | | | 366,978 | | | | 371,219 | | | | 366,101 | | | | 372,719 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total Liabilities and Shareholders’ Equity | | $ | 3,907,566 | | | $ | 3,894,900 | | | $ | 3,886,012 | | | $ | 3,894,426 | | | $ | 3,841,251 | | | $ | 3,901,233 | | | $ | 3,786,303 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
