First Financial Bancorp. (FFBC) 8-K First Financial Bancorp Reports Second-Quarter 2006 Earnings

EXHIBIT 99.1

News            News            News            News            News            News

     July 28, 2006

First Financial Bancorp Reports Second-Quarter 2006 Earnings

• Second-quarter net earnings of $0.11 per diluted share versus $0.23 in 2005 primarily due to charges associated with Strategic Plan implementation

• Cost savings and revenue enhancements updated

• Announcement of $39 million problem loan sale

• Resumption of share repurchase program

• Annualized growth in commercial lending of 10.4 percent from year-end 2005

HAMILTON, Ohio — First Financial Bancorp (Nasdaq: FFBC) president and chief executive officer, Claude E. Davis, today announced second-quarter 2006 earnings of $4,358,000 or 11 cents in diluted earnings per share, compared to $9,889,000 or 23 cents in diluted earnings per share for the same period in 2005. First Financial also announced year-to-date earnings of $8,325,000 or 21 cents in diluted earnings per share, compared to $20,615,000 or 47 cents in diluted earnings per share for the same period in 2005.

Earnings from continuing operations was $4,358,000 or 11 cents per diluted share and $9,623,000 or 22 cents per diluted share for the second quarter of 2006 and 2005, respectively. Year-to-date earnings from continuing operations was $8,325,000 and $20,155,000 for 2006 and 2005, respectively.

Davis said, “Our results this quarter reflect the continued implementation of our strategic plan and the financial impact of the long-term changes we are making. At a core operating level we are beginning to see the early signs of success in our strategy. Our net interest margin is improving, our commercial and home equity portfolios demonstrated solid growth, and through the work of our credit staff and the problem loan sale, our credit quality metrics are improving. We also experienced improvement in our fee income base with a strong increase in deposit service charges. We have announced several initiatives to improve efficiency through reduced expenses; and this remains an ongoing focus, as we strive to right-size our company for our current revenue level.”

The following items materially impacted performance in the second quarter of 2006 and are not expected to impact the future run-rate of operating results:

• Total salary and benefits related severance charges of $2,601,000 or 4 cents per share

• Data processing conversion-related expenses of $1,073,000 or 2 cents per share

• Additional health care accruals of $582,000 or 1 cent per share

• Professional services of $542,000 or 1 cent per share

Unless otherwise noted, all amounts discussed are pre-tax except income or loss from continuing operations, net income, and per-share data which is presented after-tax.

Due to the sale of the Fidelity Federal Savings Bank subsidiary in the third quarter of 2005, there was no 2006 activity from discontinued operations. In the second quarter of 2005, the earnings from discontinued operations were $266,000 or 1 cent per diluted share. Year-to-date 2005 earnings from discontinued operations were $460,000 or 1 cent per diluted share.

Return on average assets for the second quarter of 2006 was 0.51 percent compared to 1.03 percent for the same period in 2005. Return on average shareholders’ equity was 5.90 percent for the second quarter of 2006, versus 10.74 percent for the comparable period in 2005. Year-to-date return on average assets was 0.48 percent for 2006, compared to 1.08 percent for 2005, while return on equity was 5.65 percent for 2006 versus 11.23 percent for 2005.

First Financial’s second quarter operating results include the effects of several material items that are expected to impact the run-rate of operating results:

• $0.5 million or 1 cent per share in reduced net interest income due to parent company borrowings used in the repurchase of shares in the fourth quarter of 2005

• mortgage and indirect loan runoff as part of the intended loan mix shift discussed in the strategic plan totaled approximately $0.6 million or 1 cent per share in reduced net interest income

• other recurring items include increased pension expense and the effects of FAS 123R and state franchise taxes of approximately $0.6 million or 1 cent per share

(The preceding overview of First Financial Bancorp’s earnings is supplemented with the following detail:)

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Strategic Plan Review & Update:
On March 14, 2005, First Financial announced its new strategic plan for the organization. First Financial has made steady progress toward completing the plan in 2006. The areas of focus are:

• Organizational restructure

• Balance-sheet restructure

• Growth plan

• Efficiency improvement

Theorganizational restructurewas completed in the third quarter of 2005 with the consolidation to a single banking charter.

The largest component of thebalance-sheet restructurewas completed in the first quarter of 2006. Organic restructuring continues through shifting the mix of the loan portfolio to commercial credits. Since June 30, 2005, First Financial has increased its concentration of commercial lending from 47 percent of the loan portfolio to 53 percent.

Thegrowth planfor the company is moving forward with the recent announcement of a new branding strategy on June 1, 2006, when company officials rang the opening bell on the NASDAQ exchange. The company will begin operating all of its branches under one brand name, First Financial Bank. Plans are underway to roll out the new logo design and convert all offices to the new name and brand late in the third quarter of 2006. Estimated costs associated with this project are between 1 and 2 cents per share. The majority of the cost is the write-down associated with signage replacement.

As announced in the strategic plan, First Financial will continue to recruit sales staff, evaluate metropolitan markets for expansion, and consider strategic acquisitions to extend and expand the franchise.

Efficiency improvementcontinues as First Financial implements its Performance Improvement Plan in the effort to become a better, faster, and more efficient organization. A thorough review of all functional areas has been performed to evaluate staffing levels and processes associated with each area. The objective of the Performance Improvement Plan is to maximize revenue and develop the proper cost structure for the consolidated organization to achieve a peer-level efficiency ratio. First Financial has established a long-term target efficiency ratio of between 55 and 60 percent. Management remains confident that it can achieve this target.

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Salaries & Employee Benefits
The largest component of the Performance Improvement Plan is a $7.5 to $8 million planned reduction in salary and benefits through eliminating approximately 200 staff positions, excluding staff associated with the branch sales and closures. Approximately half of the staff reductions occurred in the second quarter of 2006, with the remainder expected to occur before the end of the fourth quarter of 2006. Estimated severance charges associated with the 200 staff reductions are $1.3 million, of which $0.8 million was recognized in the second quarter of 2006. Remaining charges will be recognized when incurred.

First Financial continues to add sales staff in its markets and businesses of focus. This is consistent with our plan to simultaneously reduce core operating expenses while growing revenue.

Revenue Enhancements
To date, approximately $1.5 to $2.0 million in annualized revenue enhancements have been identified. Enhancements are associated with better management of internal processes such as cash balances in branches and a planned redeployment in low and nonearning assets. The full effect of these improvements is expected to begin in the fourth quarter of 2006.

Additional reviews are in process, and results will be disclosed in future releases.

Branch Plan
The previously announced sale of 10 branches and closure of 7 offices is proceeding on schedule. Regulatory approval has been received for sales to three different purchasers. The anticipated closing date for the three transactions is August 18, 2006. Total net gains on sale are expected to be $12.5 million or 21 cents per share. Current deposits and loans for the to-be-sold offices are $101 million and $102 million, respectively, as of June 30, 2006. The estimated proforma financial impact of the branch sales and closures, excluding the gains on sales, remains earnings neutral.

First Financial will continue to concentrate future growth plans and capital investments in larger metropolitan markets. Smaller markets have historically provided stable, low-cost funding sources to First Financial and are an important part of the funding plan for the expansion in the commercial lending market. Furthermore, First Financial’s historical strength in a number of these markets should enable it to hold market share.

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First Financial’s branch strategy is to serve a combination of metropolitan and non-metropolitan markets in Indiana, Ohio, and Kentucky. In addition to geographic fit, each market must have growth potential and the ability to meet profit targets.

At the completion of the branch plan, First Financial will have 87 offices serving 9 distinct markets with an average branch size of approximately $33 million. The operating model for growth includes market presidents managing distinct markets with the authority to make decisions at the point of client contact.

Information Technology Update
First Financial has entered into an agreement with Jack Henry & Associates Inc. to license their software applications, which will be used to provide primary core data processing. This in-house solution provides First Financial with a more cost-effective model. It is expected that the conversion to the Jack Henry system will occur in October of 2006, and should enhance First Financial’s capability to deliver client services in a better, faster, and more efficient manner.

This decision is consistent with the strategic plan and is an integral component of our comprehensive review of the use of technology. This review includes analysis of our data and voice telecommunication usage, on-line and ATM services, and other ancillary services. Expected savings as a result of this comprehensive review are estimated to be between $3 million and $4 million per year and should be fully recognized in 2007. Costs associated with this conversion will include the early termination of some existing contracts. To date, $1.1 million in early termination penalties have been recorded with an additional $3.1 million expected to be recognized in the fourth quarter of 2006.

Summary of Changes
The prior period estimates of the combined improvements of the strategic initiatives remain between $13.4 million and $16.9 million or 21 cents and 27 cents per share on an annualized basis. The full effect of these changes should be recognized in 2007.

Current Period Operating Results
Net Interest Income:
Net interest income for the second quarter of 2006 was $31.9 million compared to $33.9 million in the second quarter of 2005, a decrease of $2.0 million or 5.77 percent. This decrease is due primarily to a planned reduction in earning assets through loan sales, exit of the indirect line of business and the strategic decision to sell conforming mortgage loan production in the secondary market; compounded by the increase in deposit costs. Net interest income on a linked-quarter basis (second quarter of 2006

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compared to first quarter of 2006) remained relatively flat, decreasing $252,000 or 0.78 percent. Net interest income on a year-to-date basis declined $3.7 million or 5.51 percent, which is due to the combined effects of earning asset strategies mentioned above, increased rates on deposits and a shift in deposit product mix to higher cost accounts.

First Financial’s net interest margin increased to 4.11 percent in the second quarter of 2006 from 3.94 percent in the second quarter of 2005. Linked-quarter net interest margin increased 7 basis points from 4.04 percent to 4.11 percent due to the combined effects of:

March 31, 2006			4.04	%
Balance sheet restructure	0.13	%
Asset repricing	0.11	%
Liability repricing	-0.20	%
Commercial loan volume increase	0.12	%
Late fee accrual adjustment	-0.02	%
Planned runoff of mortgage and indirect	-0.07	%
June 30, 2006			4.11	%

Earning asset rates increased on approximately 30 percent of the loan portfolio with the Prime rate adjustments during the quarter. Approximately 90 percent of this $809 million Prime and Fed Funds-based portfolio reprices quarterly. On a year-to-date basis, net interest margin increased 11 basis points from 3.96 percent to 4.07 percent. The net interest margin remains forecast in the range of 4.05 percent to 4.10 percent for 2006. The primary risk to our margin remains unanticipated consumer and competitor behavior in deposit products, specifically the consumer preference for higher-yielding money market accounts away from more traditional transaction accounts, and the aggressiveness in market pricing for both transaction and certificate of deposit accounts.

Average loans, net of unearned income, for the second quarter of 2006 decreased $182 million or 6.49 percent from the comparable period a year ago. On a year-to-date basis, average outstanding loan balances decreased $186 million or 6.68 percent due primarily to the mortgage and indirect loan portfolio sales in 2005. On a linked-quarter basis, average outstanding loan balances increased $17 million or 0.67 percent. The decrease in the loan portfolio from 2005 was affected by the previously mentioned sale of $42 million in indirect marine and recreational vehicle loans at the end of the third quarter of 2005 and the sale in the fourth quarter of approximately $64 million in retail mortgage loans that no longer fit the risk profile of the company. Furthermore, indirect installment originations ceased in the third quarter of 2005, resulting in approximately $19 million in quarterly runoff of this portfolio. Since the end of the second quarter of 2005, the indirect loan portfolio has decreased approximately $117 million, inclusive of the $42 million sale mentioned above. Additionally, First Financial has made the strategic decision to sell

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most of the mortgage loan production into the secondary market instead of keeping the loans in its portfolio.

First Financial is beginning to see progress in the planned mix shift of its loan portfolios. Ending balances in the combined commercial and commercial real estate categories are up 5.21 percent or 10.42 percent annualized, over year-end 2005. This increase occurred notwithstanding the effect of intentional runoff of certain commercial loans.

Securities available for sale were $326.6 million at June 30, 2006, compared to $554.7 million at December 31, 2005. The combined investment portfolio was 10.71 percent and 16.47 percent of total assets at June 30, 2006, and December 31, 2005, respectively. In February of 2006, the company sold $179 million in investment securities and paid down $185 million in Federal Home Loan Bank borrowings as part of the balance sheet restructuring. Reliance on wholesale borrowings has been greatly reduced as a result of this restructuring and is likely to continue for the next several quarters as the bank continues to use excess liquidity to fund future growth.

Average deposit balances for the second quarter decreased $8.2 million or 0.28 percent from the comparable period a year ago due primarily to decreases in public funds and brokered time deposits and noninterest-bearing checking accounts. Average deposits on a linked-quarter basis were relatively flat due to these decreases in public fund time deposits and brokered deposits. Excluding the anticipated decrease in brokered and public funds time deposits, average deposits would have increased 0.59 percent. Year-to-date average deposits increased 0.03 percent over the comparable period in 2005. Excluding brokered and public funds time deposits, year-to-date average deposits would have increased 0.86 percent.

Loan Sale and Credit Quality:
First Financial has undergone an extensive review of its problem credits over the past several months as part of a strategy to reduce the overall credit risk in the loan portfolio, and has identified approximately 210 loans that meet the internal criteria for sale consideration. As of June 30, 2006, First Financial had identified $39.0 million in primarily substandard commercial, commercial real estate, and retail real estate loans that were transferred to loans held for sale at the lower of cost or estimated fair value of $30.7 million by recognizing an $8.3 million charge-off. First Financial has engaged the Loan Portfolio Sales Group of Keefe, Bruyette and Woods, Inc. to market these loans during the third quarter of 2006 and anticipates closing on the loan sales prior to the end of the third quarter of 2006. The ongoing annual revenue impact of the loan sale is estimated to be a reduction of net interest income of $181,000 due to

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the reduction of certain earning assets and the redeployment of the nonaccrual loans that are nonearning assets.

The credit quality categories that are included in nonperforming and underperforming assets, both including and excluding the impact of loans held for sale, is presented in the table below.

	Quarter Ended
	2006									2005
				Jun. 30			Mar. 31			Dec. 31			Sep. 30			Jun. 30
				Excluding
				loans held for
				sale
Nonaccrual loans	$	23,964		$	12,202		$	26,838		$	24,961		$	24,563		$	20,408
Restructured loans		2,331			610			3,293			3,408			808			884
Other real estate owned		2,277			2,277			2,675			3,162			2,595			2,673
Total nonperforming assets		28,572			15,089			32,806			31,531			27,966			23,965
Accruing loans past due 90 days or more		1,326			758			1,104			1,359			1,779			764
Total underperforming assets	$	29,898		$	15,847		$	33,910		$	32,890		$	29,745		$	24,729
Nonperforming assets as a percentage of loans, net of unearned income plus other real estate owned		1.10	%		0.58	%		1.25	%		1.20	%		1.02	%		0.85	%
Underperforming assets as a percentage of loans, net of unearned income plus other real estate owned		1.15	%		0.61	%		1.30	%		1.25	%		1.09	%		0.88	%
Net charge-offs to average loans, net of unearned income		1.68	%		0.40	%		0.40	%		0.38	%		0.40	%		0.20	%

Net charge-offs were $10.9 million for the second quarter of 2006. Net charge-offs, excluding the effect of the write-down previously discussed, were $2.6 million for the second quarter or $1.2 million more than the $1.4 million net charge-offs recorded for the second quarter of 2005.

Total underperforming assets, which includes nonaccrual loans, restructured loans, other real estate owned, and loans 90 days or more past due and still accruing, increased $5.2 million to $29.9 million at the end of the second quarter of 2006 from $24.7 million at the end of the second quarter of 2005. The increase in underperforming assets is due to an increase in nonaccrual loans of $3.6 million. Excluding loans held for sale, total underperforming assets decreased $8.9 million to $15.8 million at the end of the second quarter of 2006 from $24.7 million at the end of the second quarter of 2005, as discussed above. On a linked-quarter basis, total underperforming assets decreased $4.0 million.

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Excluding loans held for sale, total underperforming assets on a linked-quarter basis decreased $18.1 million. These credits have been appropriately considered in establishing the allowance for loan losses at June 30, 2006.

Nonperforming assets to ending loans increased to 1.10 percent as of June 30, 2006, from 0.85 percent as of the end of the second quarter of 2005 and decreased from 1.25 percent on the linked-quarter. Excluding loans held for sale, the nonperforming assets to ending loans ratio as of June 30, 2006, was 0.58 percent.

The provision for loan losses for the second quarter of 2006 was $360,000 compared to $750,000 for the same period in 2005. The provision is a result of management’s quarterly analysis of the adequacy of the allowance for loan losses. Due to the prospective loan sale that was considered when evaluating the quarterly analysis of the adequacy of the allowance for loan losses, the allowance to ending loans ratio as of June 30, 2006, was 1.15 percent versus 1.55 percent for the same quarter a year ago and 1.56 percent as of March 31, 2006. A large percentage of the underperforming loans are secured by real estate. It is management’s belief that the allowance for loan losses of $30.1 million is adequate to absorb probable credit losses inherent in the portfolio, and the changes in the allowance and the resultant provision are consistent with the internal assessment of the risk in the loan portfolios.

Noninterest Income:
Second quarter 2006 noninterest income was $15.8 million, an increase of $1.0 million or 6.76 percent from the second quarter of 2005. First Financial had quarterly increases in service charges on deposit accounts income of $822,000 which included the positive effects of its new overdraft program. Bankcard interchange income increased $177,000 due to both increased debit card issuance and usage; and bank-owned life insurance income increased $425,000, while gains on mortgage loan sales decreased $221,000.

On a linked-quarter basis, total noninterest income increased $1.1 million or 7.37 percent. This increase was primarily due to the $476,000 loss on securities sold in the first quarter, a $342,000 increase in service charges on deposit accounts related to increases in nonsufficient funds charges in the second quarter, and an increase of $203,000 in bank-owned life insurance income in the second quarter.

Year-to-date noninterest income increased $721,000 or 2.41 percent from the comparable period in 2005 due to increases in service charges on deposit accounts of $1.7 million, offset by a decrease in gain on loan sales of $440,000, and a $476,000 loss on investment securities sold.

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Noninterest Expense:
Second Quarter 2006 vs. Second Quarter 2005
Total noninterest expense increased $7.1 million or 21.17 percent for the second quarter of 2006 from the second quarter of 2005. This increase was primarily due to the following:

• increases in salaries and benefits of $4.0 million due to $2.6 million in severance-related salaries and benefits expense, $438,000 in increased health care costs, $425,000 in increased retirement-related expenses, and $153,000 in increased bonuses. Excluding these items, salaries and benefits were up $336,000 or 1.75 percent due largely to overtime associated with the upcoming data processing conversion

• $457,000 increase in occupancy expense due primarily to increased maintenance costs, utilities, and new building rent consistent with First Financial’s growth plans

• $1.7 million increase in data processing expense attributable to early termination fees for the conversion of various systems

• $1.3 million increase in other noninterest expense consisting of increases in various accounts, including $227,000 in intangible state tax, $193,000 in credit and collection fees, $257,000 in travel related expenses, $180,000 in credit card and merchant interchange expense more than offset by the increase in interchange income and merchant discount, and $150,000 in stationery and supplies

• equipment expense decrease of $330,000 due to a decrease in equipment expense rent of $179,000 and service contracts of $103,000 that is not expected to continue

Second Quarter 2006 vs. First Quarter 2006
On a linked-quarter basis, noninterest expense was $36,000 higher than the first quarter. This increase was due to the offsetting effects of the prepayment penalty of $4.3 million in the first quarter compared to the following second quarter items:

• increases in salaries and employee benefits of $2.9 million due to severance charges of $2.6 million and health care costs of $582,000

• $1.4 million increase in data processing primarily due to early termination fees discussed previously

• $362,000 increase in professional services that includes costs associated with our branding initiative, branch staffing, and recruiting fees

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Year-to-date 2006 vs. Year-to-date 2005
Year-to-date noninterest expense increased $14.6 million. Excluding the effects of the $4.3 million prepayment penalty mentioned above, noninterest expense would have increased $10.3 million due to:

• increases in salaries and employee benefits of $5.3 million due to severance charges of $2.8 million, retirement-related expense of $1.1 million, bonuses of $412,000, health care of $196,000, overtime expense of $142,000 and temporary personnel services of $120,000

• increases in data processing of $1.9 million due to early termination fees discussed previously

• increases in other noninterest expense of $2.7 million due to increases in various accounts, including $584,000 in travel-related expenses, $416,000 in state intangible tax, $409,000 in credit and collection expense, and $331,000 in credit card and merchant interchange expense. The travel-related expenses and credit and collection expenses are expected to decline in future periods.

First Financial anticipates additional restructuring-related expenses primarily in data processing, professional services, and severance charges. These amounts will be disclosed when quantified and recognized in the period in which they are incurred.

Staff Expense
Staff expense continues to be the most significant operating expense and area of transition for First Financial. The current staffing levels reflect both the initiatives to hire quality sales staff in key markets and the partial completion of announced staff reduction plans. As of June 30, 2006, First Financial had 1,365 full time equivalent employees with plans to achieve a targeted year-end level, after the branch plan execution, of approximately 1,152 full time equivalent employees.

Capital Management
First Financial will resume its share repurchase program under its previously approved plans. The delay in repurchase resumption has stemmed from the extensive projects of a material nature that have occurred since December 2005 when the repurchase program was halted due to the Dutch Tender Offer. Repurchase resumption can only begin in a quiet period. Management plans to repurchase between 750,000 and 1,250,000 shares over the next twelve months.

First Financial has recently lowered its targeted risk-based capital ratio from a range of 12.25 to 12.75 percent to 11.50 to 12.25 percent. The primary driver behind the change is the comfort level that First Financial has with the improvements made in its underwriting and risk management processes. The

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leverage ratio target of 8.00 percent to 8.50 percent and the tangible equity to tangible asset ratio target of 6.75 percent to 7.25 percent remain unchanged.

Earnings Conference Call and Webcast
On July 28, 2006, First Financial will host an earnings conference call that will be webcast live at 11:00 a.m. EDT. The presenters will be Claude E. Davis, president and chief executive officer, C. Douglas Lefferson, executive vice president and chief operating officer, and J. Franklin Hall, senior vice president and chief financial officer. Anyone may participate in the conference call by telephoning 1-877-407-8031 (no passcode needed) or by logging on to the company’s website (http://ffbc-oh.com) for a live audio webcast of the call. Click on the Investor Information section and choose the category of News. Listeners should allow an extra five minutes to be connected to the call or webcast. The event will also be archived on the company’s website for one year.

Anyone who wishes to hear a replay of the event by telephone may dial 1-877-660-6853, account number 286, conference ID number 208019 between 5:00 p.m. EDT on July 28, 2006, and 11:59 p.m. on August 4, 2006.

First Financial plans to file the SEC Form 10-Q on Tuesday, August 1, 2006.

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, 2005. 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, the ability of the company to implement its strategic plan, 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 2005 Form 10-K and other public documents filed with the SEC. These documents are available on our investor relations website at www.ffbc-oh.comand on the SEC’s website at www.sec.gov.

First Financial Bancorp
P.O. Box 476
Hamilton, OH 45012
Analyst Contact: J. Franklin Hall
513-979-5770
frank.hall@ffbc-oh.com
Media Contact: Cheryl R. Lipp
513-979-5797
cheryl.lipp@firstfb.com

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FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL DATA

(Dollars in thousand, except per share)
(Unaudited)

																Six months ended
	June 30,			March 31,			Dec. 31,			Sep. 30,			June 30,			June 30,
	2006			2006			2005			2005			2005			2006			2005
EARNINGS
Net interest income	$	31,947		$	32,199		$	31,939		$	33,143		$	33,905		$	64,146		$	67,885
Earnings from continuing operations		4,358			3,967			2,834			7,819			9,623			8,325			20,155
Earnings from discontinued operations		0			0			0			6,665			266			0			460
Net earnings		4,358			3,967			2,834			14,484			9,889			8,325			20,615
Earnings per share from continuing operations — basic	$	0.11		$	0.10		$	0.07		$	0.18		$	0.22		$	0.21		$	0.46
Earnings per share from continuing operations — diluted	$	0.11		$	0.10		$	0.07		$	0.18		$	0.22		$	0.21		$	0.46
Earnings per share from discontinued operations — basic	$	0.00		$	0.00		$	0.00		$	0.15		$	0.01		$	0.00		$	0.01
Earnings per share from discontinued operations — diluted	$	0.00		$	0.00		$	0.00		$	0.15		$	0.01		$	0.00		$	0.01
Net earnings per share — basic	$	0.11		$	0.10		$	0.07		$	0.33		$	0.23		$	0.21		$	0.47
Net earnings per share — diluted	$	0.11		$	0.10		$	0.07		$	0.33		$	0.23		$	0.21		$	0.47
KEY RATIOS
Return on average assets		0.51	%		0.45	%		0.30	%		1.50	%		1.03	%		0.48	%		1.08	%
Return on average shareholders’ equity		5.90	%		5.39	%		3.20	%		15.64	%		10.74	%		5.65	%		11.23	%
Return on average tangible shareholders’ equity		6.70	%		6.12	%		3.57	%		17.32	%		11.90	%		6.40	%		12.44	%
Average shareholders’ equity to average assets		8.64	%		8.42	%		9.44	%		9.60	%		9.61	%		8.53	%		9.61	%
Net interest margin		4.11	%		4.04	%		3.72	%		3.83	%		3.94	%		4.07	%		3.96	%
Net interest margin (fully tax equivalent)(1)		4.20	%		4.12	%		3.80	%		3.92	%		4.03	%		4.16	%		4.05	%
COMMON STOCK DATA
Average basic shares outstanding		39,605,631			39,560,109			42,069,965			43,166,270			43,502,193			39,582,995			43,551,614
Average diluted shares outstanding		39,619,729			39,612,496			42,180,824			43,262,371			43,575,499			39,616,238			43,624,879
Ending shares outstanding		39,660,341			39,562,350			39,563,480			42,978,981			43,351,903			39,660,341			43,351,903
Market price:
High	$	16.68		$	18.32		$	19.30		$	19.80		$	18.90		$	18.32		$	19.25
Low	$	14.63		$	15.88		$	17.51		$	16.99		$	16.90		$	14.63		$	16.65
Close	$	14.91		$	16.64		$	17.52		$	18.61		$	18.90		$	14.91		$	18.90
Book value	$	7.37		$	7.50		$	7.58		$	8.59		$	8.53		$	7.37		$	8.53
Common dividend declared	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16		$	0.32		$	0.32
AVERAGE BALANCE SHEET ITEMS
Loans less unearned income	$	2,614,248		$	2,596,755		$	2,657,156		$	2,783,315		$	2,795,754		$	2,605,549		$	2,791,936
Investment securities		380,532			497,528			620,868			625,418			635,982			438,707			645,495
Other earning assets		122,413			141,513			127,701			20,938			17,188			131,910			17,662
Total earning assets		3,117,193			3,235,796			3,405,725			3,429,671			3,448,924			3,176,166			3,455,093
Total assets		3,428,839			3,545,412			3,719,197			3,827,395			3,846,259			3,486,803			3,849,778
Noninterest-bearing deposits		424,227			417,061			433,228			428,881			433,379			420,664			429,394
Interest-bearing deposits		2,477,026			2,486,336			2,488,062			2,473,697			2,476,112			2,481,655			2,472,152
Total deposits		2,901,253			2,903,397			2,921,290			2,902,578			2,909,491			2,902,319			2,901,546
Borrowings		202,792			313,743			418,388			446,939			445,141			257,961			454,668
Shareholders’ equity		296,087			298,578			350,934			367,472			369,477			297,325			370,149
CREDIT QUALITY
Ending allowance for loan losses	$	30,085		$	40,656		$	42,485		$	42,036		$	43,506		$	30,085		$	43,506
Nonperforming assets:
Nonaccrual(2)		12,202			26,838			24,961			24,563			20,408			12,202			20,408
Restructured(2)		610			3,293			3,408			808			884			610			884
OREO		2,277			2,675			3,162			2,595			2,673			2,277			2,673
Total nonperforming assets(2)		15,089			32,806			31,531			27,966			23,965			15,089			23,965
Loans delinquent over 90 days(2)		758			1,104			1,359			1,779			764			758			764
Gross charge-offs:
Commercial		(3,521	)		(1,516	)		(1,066	)		(1,839	)		(948	)		(5,037	)		(1,772	)
Commercial real estate		(5,818	)		(276	)		(449	)		(94	)		(12	)		(6,094	)		(207	)
Retail real estate		(1,910	)		(202	)		(220	)		(121	)		(202	)		(2,112	)		(555	)
All other		(762	)		(1,271	)		(1,583	)		(1,279	)		(1,105	)		(2,033	)		(2,405	)
Total gross charge-offs(3)		(12,011	)		(3,265	)		(3,318	)		(3,333	)		(2,267	)		(15,276	)		(4,939	)
Recoveries:
Commercial		476			188			212			205			200			664			731
Commercial real estate		57			50			4			4			9			107			13
Retail real estate		78			10			141			24			48			88			72
All other		469			436			395			279			594			905			1,348
Total recoveries		1,080			684			752			512			851			1,764			2,164
Total net charge-offs		(10,931	)		(2,581	)		(2,566	)		(2,821	)		(1,416	)		(13,512	)		(2,775	)
CREDIT QUALITY RATIOS
Allowance to ending loans, net of unearned income		1.15	%		1.56	%		1.62	%		1.54	%		1.55	%		1.15	%		1.55	%
Nonperforming assets to ending loans, net of unearned income plus OREO(2)		0.58	%		1.25	%		1.20	%		1.02	%		0.85	%		0.58	%		0.85	%
90 days past due to loans, net of unearned income(2)		0.03	%		0.04	%		0.05	%		0.07	%		0.03	%		0.03	%		0.03	%
Net charge-offs to average loans, net of unearned income(3)		1.68	%		0.40	%		0.38	%		0.40	%		0.20	%		1.05	%		0.20	%

(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) June 30, 2006 amounts and ratios exclude loans held for sale.

(3) June 30, 2006 charge-offs include $8,356 in loans held for sale write-downs to the lower of cost or estimated fair market value.

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands)
(Unaudited)

	Three months ended,													Six months ended,
	June 30,		March 31,			Dec. 31,			Sep. 30,			June 30,		June 30,
	2006		2006			2005			2005			2005		2006			2005
Interest income
Loans, including fees	$	44,386	$	42,857		$	42,766		$	44,122		$	43,370	$	87,243		$	85,748
Investment securities
Taxable		3,798		5,141			5,481			5,219			5,389		8,939			10,797
Tax-exempt		1,057		1,104			1,173			1,221			1,239		2,161			2,469
Total investment securities interest		4,855		6,245			6,654			6,440			6,628		11,100			13,266
Interest-bearing deposits with other banks		0		0			0			0			0		0			1
Federal funds sold and securities purchased under agreements to resell		1,500		1,582			1,297			178			121		3,082			225
Total interest income		50,741		50,684			50,717			50,740			50,119		101,425			99,240
Interest expense
Deposits		16,554		14,933			14,015			12,779			11,434		31,487			21,860
Short-term borrowings		892		896			473			520			507		1,788			968
Long-term borrowings		709		2,058			3,720			3,769			3,781		2,767			7,589
Subordinated debentures and capital securities		639		598			570			529			492		1,237			938
Total interest expense		18,794		18,485			18,778			17,597			16,214		37,279			31,355
Net interest income		31,947		32,199			31,939			33,143			33,905		64,146			67,885
Provision for loan losses		360		752			3,015			1,351			750		1,112			1,205
Net interest income after provision for loan losses		31,587		31,447			28,924			31,792			33,155		63,034			66,680
Noninterest income
Service charges on deposit accounts		5,431		5,089			5,257			4,944			4,609		10,520			8,775
Trust revenues		3,882		4,053			4,041			3,974			3,879		7,935			7,973
Bankcard interchange income		1,745		1,648			1,621			1,577			1,568		3,393			2,988
Gains (losses) from sales of loans		259		245			1,239			(1,280	)		480		504			944
(Losses) gains on impairment and sales of investment securities		0		(476	)		(6,519	)		6			0		(476	)		(6	)
Investment advisory fees		801		846			976			936			828		1,647			1,668
Other		3,723		3,349			2,764			3,852			3,474		7,072			7,532
Total noninterest income		15,841		14,754			9,379			14,009			14,838		30,595			29,874
Noninterest expenses
Salaries and employee benefits		23,110		20,217			20,270			19,353			19,157		43,327			38,067
Net occupancy		2,698		2,839			2,555			2,465			2,241		5,537			4,590
Furniture and equipment		1,334		1,480			1,297			1,694			1,664		2,814			3,285
Data processing		3,182		1,807			1,640			1,627			1,461		4,989			3,050
Marketing		647		683			704			535			714		1,330			1,225
Communication		642		667			831			758			715		1,309			1,496
Professional services		1,669		1,307			2,088			1,465			1,527		2,976			2,913
Amortization of intangibles		224		217			220			220			220		441			440
Debt extinguishment		0		4,295			0			0			0		4,295			0
Other		7,190		7,148			6,154			6,615			5,886		14,338			11,679
Total noninterest expenses		40,696		40,660			35,759			34,732			33,585		81,356			66,745
Earnings from continuing operations before income taxes		6,732		5,541			2,544			11,069			14,408		12,273			29,809
Income tax (benefit) expense		2,374		1,574			(290	)		3,250			4,785		3,948			9,654
Earnings from continuing operations		4,358		3,967			2,834			7,819			9,623		8,325			20,155
Discontinued operations
Other operating (loss) income		0		0			0			(140	)		416		0			723
Gain on discontinued operations		0		0			0			10,366			0		0			0
Earnings from discontinued operations before income taxes		0		0			0			10,226			416		0			723
Income tax expense		0		0			0			3,561			150		0			263
Earnings from discontinued operations		0		0			0			6,665			266		0			460
Net earnings	$	4,358	$	3,967		$	2,834		$	14,484		$	9,889	$	8,325		$	20,615
ADDITIONAL DATA — FULLY TAX EQUIVALENT NET INTEREST INCOME*
Interest income	$	50,741	$	50,684		$	50,717		$	50,740		$	50,119	$	101,425		$	99,240
Tax equivalent adjustment		696		661			723			746			756		1,357			1,514
Interest income — tax equivalent		51,437		51,345			51,440			51,486			50,875		102,782			100,754
Interest expense		18,794		18,485			18,778			17,597			16,214		37,279			31,355
Net interest income — tax equivalent	$	32,643	$	32,860		$	32,662		$	33,889		$	34,661	$	65,503		$	69,399

*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.

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)
(Unaudited)

	June 30,			Dec. 31,			June 30,
	2006			2005			2005
ASSETS
Cash and due from banks	$	152,581		$	163,281		$	170,867
Federal funds sold and securities purchased under agreements to resell		79,000			98,000			0
Investment securities, held-to-maturity		8,571			12,555			17,439
Investment securities, available-for-sale		326,633			554,673			578,360
Other investments		34,827			40,755			40,140
Loans
Commercial		646,662			582,594			607,258
Real estate-construction		95,603			86,022			91,987
Real estate-commercial		640,869			646,079			624,381
Real estate-retail		721,383			772,334			862,691
Installment, net of unearned		478,437			515,200			592,903
Credit card		22,563			22,936			21,192
Lease financing		1,396			2,258			3,481
Total loans		2,606,913			2,627,423			2,803,893
Less
Allowance for loan losses		30,085			42,485			43,506
Net loans		2,576,828			2,584,938			2,760,387
Loans held for sale		30,747			0			0
Premises and equipment		78,707			73,025			70,301
Goodwill		28,261			28,116			28,656
Other intangibles		6,927			7,920			7,619
Accrued interest and other assets		132,303			127,545			118,737
Assets related to discontinued operations		0			0			101,760
Total Assets	$	3,455,385		$	3,690,808		$	3,894,266
LIABILITIES
Deposits
Noninterest-bearing		433,372		$	440,988		$	446,504
Interest-bearing		2,495,040			2,484,451			2,473,222
Total deposits		2,928,412			2,925,439			2,919,726
Short-term borrowings		85,096			111,634			127,466
Federal Home Loan Bank long-term debt		82,025			286,655			321,220
Other long-term debt		30,930			30,930			30,930
Accrued interest and other liabilities		36,688			36,269			32,613
Liabilities related to discontinued operations		0			0			92,489
Total Liabilities		3,163,151			3,390,927			3,524,444
SHAREHOLDERS’ EQUITY
Common stock		391,566			392,607			391,619
Retained earnings		70,997			75,357			71,784
Accumulated comprehensive income		(11,875	)		(7,876	)		(4,864	)
Treasury stock, at cost		(158,454	)		(160,207	)		(88,717	)
Total Shareholders’ Equity		292,234			299,881			369,822
Total Liabilities and Shareholders’ Equity	$	3,455,385		$	3,690,808		$	3,894,266

ADDITIONAL DATA — RISK BASED CAPITAL

	June 30,			March 31,			Dec. 31,			Sep. 30,			June 30,
	2006			2006			2005			2005			2005
Tier 1 Capital	$	296,292		$	297,602		$	299,680		$	369,735		$	367,347
Tier 1 Ratio		11.37	%		11.58	%		11.49	%		13.93	%		13.10	%
Total Capital	$	326,452		$	329,897		$	332,458		$	403,044		$	402,523
Total Capital Ratio		12.52	%		12.83	%		12.75	%		15.19	%		14.36	%
Total Risk-Adjusted Assets	$	2,606,760		$	2,570,847		$	2,608,167		$	2,653,795		$	2,803,792
Leverage Ratio		8.72	%		8.47	%		8.12	%		9.74	%		9.63	%

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)
(Unaudited)

	Quarterly Averages															Year-to-Date Averages
	June 30,			March 31,			Dec. 31,			Sep. 30,			June 30,			June 30,
	2006			2006			2005			2005			2005			2006			2005
ASSETS
Cash and due from banks	$	115,406		$	123,129		$	129,663		$	124,833		$	121,289		$	119,246		$	120,444
Interest-bearing deposits with other banks		0			0			0			0			0			0			74
Federal funds sold and securities purchased under agreements to resell		122,413			141,513			127,701			20,938			17,188			131,910			17,588
Investment securities		380,532			497,528			620,868			625,418			635,982			438,707			645,495
Loans
Commercial		626,912			580,681			575,075			612,119			610,727			603,924			614,692
Real estate-construction		83,719			85,672			96,529			96,211			83,903			84,690			83,962
Real estate-mortgage		1,395,104			1,404,739			1,436,013			1,470,130			1,490,867			1,399,895			1,487,009
Installment, net of unearned		484,897			501,857			525,350			580,409			585,854			493,330			581,436
Credit card		22,017			21,748			21,517			21,220			20,537			21,883			20,543
Lease financing		1,599			2,058			2,672			3,226			3,866			1,827			4,294
Total loans		2,614,248			2,596,755			2,657,156			2,783,315			2,795,754			2,605,549			2,791,936
Less
Allowance for loan losses		40,445			42,402			41,741			42,630			43,996			41,418			44,407
Net loans		2,573,803			2,554,353			2,615,415			2,740,685			2,751,758			2,564,131			2,747,529
Loans held for sale		350															176
Premises and equipment		76,150			73,556			72,351			71,256			68,775			74,860			67,941
Accrued interest and other assets		160,185			155,333			153,199			159,353			148,687			157,773			146,839
Assets related to discontinued operations		0			0			0			84,912			102,580			0			103,868
Total Assets	$	3,428,839		$	3,545,412		$	3,719,197		$	3,827,395		$	3,846,259		$	3,486,803		$	3,849,778
LIABILITIES
Deposits
Interest-bearing	$	180,046		$	203,363		$	180,999		$	187,458		$	159,332		$	191,640		$	159,639
Savings		1,062,334			1,040,940			1,018,271			1,031,441			1,055,357			1,051,696			1,052,124
Time		1,234,646			1,242,033			1,288,792			1,254,798			1,261,423			1,238,319			1,260,389
Total interest-bearing deposits		2,477,026			2,486,336			2,488,062			2,473,697			2,476,112			2,481,655			2,472,152
Noninterest-bearing		424,227			417,061			433,228			428,881			433,379			420,664			429,394
Total deposits		2,901,253			2,903,397			2,921,290			2,902,578			2,909,491			2,902,319			2,901,546
Borrowed funds
Short-term borrowings		89,382			97,414			72,132			96,904			90,653			93,376			97,527
Federal Home Loan Bank long-term debt		82,480			185,399			315,326			319,105			323,558			133,655			326,211
Other long-term debt		30,930			30,930			30,930			30,930			30,930			30,930			30,930
Total borrowed funds		202,792			313,743			418,388			446,939			445,141			257,961			454,668
Accrued interest and other liabilities		28,707			29,694			28,585			32,694			27,748			29,198			27,633
Liabilities related to discontinued operations		0			0			0			77,712			94,402			0			95,782
Total Liabilities		3,132,752			3,246,834			3,368,263			3,459,923			3,476,782			3,189,478			3,479,629
SHAREHOLDERS’ EQUITY
Common stock		392,354			392,666			392,253			391,773			391,944			392,509			392,251
Retained earnings		73,237			73,710			80,135			74,114			70,396			73,472			68,331
Accumulated comprehensive income		(9,999	)		(7,538	)		(8,323	)		(6,301	)		(6,622	)		(8,776	)		(5,150	)
Treasury stock, at cost		(159,505	)		(160,260	)		(113,131	)		(92,114	)		(86,241	)		(159,880	)		(85,283	)
Total Shareholders’ Equity		296,087			298,578			350,934			367,472			369,477			297,325			370,149
Total Liabilities and
Shareholders’ Equity	$	3,428,839		$	3,545,412		$	3,719,197		$	3,827,395		$	3,846,259		$	3,486,803		$	3,849,778