EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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Media Contact: | | Cheryl Lipp |
| | | (513) 979-5797 |
| | | cheryl.lipp@bankatfirst.com |
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Analyst Contact: | | J. Franklin Hall |
| | | (513) 979-5770 |
| | | frank.hall@bankatfirst.com |
First Financial Bancorp Reports Second Quarter 2007 Financial Results
| | • | | Second quarter 2007 net earnings of $0.21 per diluted share versus $0.11 in second quarter 2006 |
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| | • | | Continued improvement in earning asset mix with stable net interest margin |
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| | • | | Year-over-year second quarter period-end growth in commercial, commercial real estate, and construction loans of $207.3 million or 15.4 percent, excluding the effects of the branch and loan sales |
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| | • | | Credit quality remains relatively stable |
HAMILTON, Ohio – July 25, 2007 – First Financial Bancorp (Nasdaq: FFBC) president and chief executive officer, Claude E. Davis, today announced second quarter 2007 earnings of $8,172,000 or 21 cents in diluted earnings per share, compared to $4,358,000 or 11 cents in diluted earnings per share for the second quarter 2006 and $8,435,000 or 22 cents in diluted earnings per share last quarter. First Financial also announced year-to-date earnings of $16,607,000 or 43 cents in diluted earnings per share, compared to $8,325,000 or 21 cents in diluted earnings per share for the same period in 2006.
Return on average assets for the second quarter 2007 was 1.00 percent compared to 0.51 percent for the same period in 2006 and 1.04 percent last quarter. Year-to-date return on average assets was 1.02 percent for 2007 compared to 0.48 percent for the same period in 2006. Return on average shareholders’ equity was 11.61 percent for the second quarter 2007 compared to 5.90 percent for the comparable period in 2006 and 11.94 percent last quarter. Year-to-date return on average shareholders’ equity was 11.78 percent for 2007 compared to 5.65 percent for the same period in 2006.
Unless otherwise noted, all amounts discussed in the remainder of the earnings release are pre-tax except income or loss from continuing operations, net income, and per-share data which is presented after-tax.
Summary and Outlook of Key Drivers
Net interest margindecreased to 3.97 percent in the second quarter 2007 from 4.11 percent for the second quarter 2006 and 4.12 percent for the linked-quarter (second quarter 2007 compared to first quarter 2007). Approximately 10 basis points of the first quarter 2007 net interest margin was 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. The 2007 margin forecast remains within a range of 3.90 to 4.05 percent.
Noninterest incomeremained relatively stable on a comparative quarter basis. On a linked-quarter basis, excluding the effects of the first quarter 2007 gain on the sale of residential mortgage servicing rights of $1.1 million, noninterest income was positively impacted by increases in service charges on deposit accounts, trust and wealth management fees, and bankcard income. Management expects the full-year noninterest income annualized growth rate to be between zero and 5.0 percent from the 2006 adjusted, full-year baseline of approximately $59 million.
Noninterest expensewas significantly impacted during 2006 by the transition costs associated with First Financial’s execution of its Strategic Plan, resulting in a reduction in noninterest expense of $9.2 million in the second quarter 2007 from the prior year comparable quarter. Year-to-date noninterest expense was $60.7 million in 2007 compared to $77.6 million in 2006, a $16.9 million or 21.8 percent decrease. Management expects that the 2007 efficiency ratio will be between 65 and 67 percent, but remains committed to the long-term goal of 55 to 60 percent. These items will be discussed in more detail in the remainder of the earnings release.
Capitalmanagement efforts through share repurchases resulted in 252,000 shares repurchased in the second quarter 2007 at a cost of $3.8 million. On a year-to-date basis, First Financial has repurchased 496,000 shares at a cost of $7.7 million and a weighted average share price of $15.58. First Financial expects to repurchase approximately 1,000,000 shares in 2007.
Credit qualityremained relatively stable as net charge-offs for the second quarter were an annualized 23 basis points, and management is projecting a net charge-off level of between 30 and 40 basis points for the full year. Nonperforming assets increased $3.0 million from the first quarter 2007 primarily due to the transfer of four commercial loan relationships to nonaccrual status. First Financial's allowance for loan and lease losses to period-end loans ratio was 1.10 percent, flat compared to the first quarter 2007. Year-to-date 2007 net charge-offs were an annualized 22 basis points of average loans compared to an annualized 40 basis points of average loans for the comparable period in 2006, excluding the second quarter 2006 impact from the transfer of approximately $38 million of loans to loans held for sale.
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Updated 2007 guidance
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| | | 2007 Original | | 2007 Updated |
| | | Guidance | | Guidance |
| Earnings Per Share | | $1.00 - $1.10 | | $0.90 - $0.95 |
| Net Interest Margin | | 3.90% - 4.05% | | No change |
| Noninterest Income Annualized Growth | | 7% - 13% | | 0% - 5% |
| Noninterest Expense | | $118 - $122 million | | No Change |
| Net Charge-offs to Average Loans | | 30 - 40 bp | | No Change |
| Effective Tax Rate | | 33.0% | | No Change |
| Return on Equity | | 13% - 15% | | 12% - 13% |
| Efficiency | | 62% - 65% | | 65% - 67% |
(The preceding overview of First Financial Bancorp’s earnings is supplemented with the following detail:)
Current Period Operating Results
NET INTEREST INCOME
Second Quarter 2007 vs. Second Quarter 2006
Net interest income for the second quarter 2007 was $29.6 million compared to $31.9 million in the second quarter 2006, a decrease of $2.3 million or 7.3 percent. This decrease is primarily due to a 4.1 percent net decline in the level of earning assets, resulting primarily from the third quarter 2006 sale of ten branches and their approximate $101 million of loans and $109 million of deposits.
Second Quarter 2007 vs. First Quarter 2007
Net interest income on a linked-quarter basis decreased from $30.4 million in the first quarter 2007 to $29.6 million in the second quarter 2007, an $802,000 or 2.6 percent decrease. Excluding the effect of the first quarter 2007 interest accrual noted earlier, linked-quarter net interest income remained flat primarily due to consistent earning asset levels and stability in the net interest margin.
Year-to-Date 2007 vs. Year-to-Date 2006
Year-to-date net interest income was $60.0 million in 2007 compared to $64.1 million in 2006, a $4.1 million or 6.5 percent decrease. This decrease is primarily due to a 5.9 percent net decline in the level of earning assets,
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resulting primarily from the balance sheet restructure completed in the first quarter 2006, the third quarter 2006 sale of ten branches and their associated loans and deposits, and continued effects of increased rates on deposits.
NET INTEREST MARGIN
Second Quarter 2007 vs. Second Quarter 2006
Second quarter 2007 net interest margin of 3.97 percent decreased 14 basis points from 4.11 percent for the second quarter 2006, reflecting the planned reduction in earning assets and an increase in deposit costs. On a tax equivalent basis, the second quarter 2007 net interest margin of 4.05 percent decreased 15 basis points from 4.20 percent for the second quarter 2006.
Second Quarter 2007 vs. First Quarter 2007
Linked-quarter net interest margin decreased 5 basis points from an adjusted 4.02 percent to 3.97 percent. The net interest margin remains relatively stable as the earning asset mix continues to shift from lower yielding indirect installment and conforming mortgage loans to higher yielding commercial and commercial real estate loans. These benefits were more than offset by the planned reduction in earning assets and a continued increase in deposit costs. On a tax-equivalent basis, the second quarter 2007 net interest margin was 4.05 percent as compared to an adjusted 4.10 percent for the first quarter 2007.
Year-to-Date 2007 vs. Year-to-Date 2006
Year-to-date net interest margin was 4.05 percent in 2007, 4.00 percent when adjusted for the year-to-date impact of the interest accrual noted earlier, compared to 4.07 percent in 2006, reflecting the planned reduction in earning assets and an increase in deposit costs. On a tax-equivalent year-to-date basis, net interest margin was an adjusted 4.08 percent in 2007 as compared to 4.16 percent in 2006.
For further details on the quarter-over-quarter and year-to-date changes in the net interest margin, please see the attached Net Interest Margin Rate / Volume Analysis.
BALANCE SHEET TRENDS
Loans
First Financial has continued to expand its commercial lending sales force and market presence over the past year, which is reflected in the planned loan mix shift to higher yielding commercial loans. Period-end commercial,
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commercial real estate, and construction loans, excluding the effects of the branch and loan sales, increased from $1.34 billion in the second quarter 2006 to $1.55 billion in the second quarter 2007, an increase of approximately $207.3 million or 15.4 percent, as summarized below:
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| | | | | | | | | | | | | | | Annualized | | | % Change | |
| | | | | | | | | | | | | | | % Change | | | Comparable- | |
| Period-end balances: | | 6/30/07 | | | 3/31/07 | | | 6/30/06 | | | Linked-Qtr. | | | Qtr. | |
| Commercial | | $ | 747,292 | | | $ | 709,341 | | | $ | 646,662 | | | | 21.4 | % | | | 15.6 | % |
| Real estate — commercial | | | 676,679 | | | | 647,126 | | | | 640,869 | | | | 18.3 | % | | | 5.6 | % |
| Real estate — construction | | | 125,732 | | | | 107,867 | | | | 95,603 | | | | 66.2 | % | | | 31.5 | % |
| Branch loan sale impact | | | — | | | | — | | | | (37,437 | ) | | | — | | | | — | |
| Strategic loan sale impact | | | — | | | | — | | | | (3,277 | ) | | | — | | | | — | |
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| Total | | $ | 1,549,703 | | | $ | 1,464,334 | | | $ | 1,342,420 | | | | 23.3 | % | | | 15.4 | % |
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During late 2005 and early 2006, management made the decisions to exit indirect installment lending, to no longer hold its retail mortgage loan originations on the balance sheet, and to utilize the sale of loans to strategically manage the company’s asset mix, risk profile, and credit quality. Management estimates this has resulted in the cumulative reduction in loan balances as follows:
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| Indirect installment loan runoff | | $ | 176,725 | |
| Retail mortgage loan runoff | | | 133,631 | |
| Strategic loan sales | | | 260,423 | |
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| Total | | $ | 570,779 | |
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Second Quarter 2007 vs. Second Quarter 2006
Average total loans for the second quarter 2007 decreased $83.8 million or 3.2 percent from the comparable period a year ago. Period-end commercial, commercial real estate, and construction loans, excluding the effects of the branch and loan sales, increased approximately $207.3 million or 15.4 percent from the second quarter 2006.
Second Quarter 2007 vs. First Quarter 2007
Average total loans for the second quarter 2007 increased $47.0 million or 7.6 percent on an annualized basis from the first quarter 2007, and average commercial, commercial real estate, and construction loans increased $86.9 million or 24.4 percent on an annualized basis from the first quarter 2007. Period-end commercial, commercial real estate, and construction loans increased approximately $85.4 million or 23.3 percent on an annualized basis from the first quarter 2007.
Year-to-Date 2007 vs. Year-to-Date 2006
Year-to-date 2007 average total loans decreased $98.5 million or 7.6 percent on an annualized basis from the comparable period in 2006; however, average commercial, commercial real estate, and construction loans increased $131.7 million or 19.7 percent on an annualized basis from the comparable period in 2006.
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Investments
Securities available-for-sale were $313.6 million at June 30, 2007, compared to $326.6 million at June 30, 2006 and $325.8 million at March 31, 2007. The combined investment portfolio was 10.8 percent and 10.7 percent of total assets at June 30, 2007, and 2006, respectively, and 11.0 percent of total assets at March 31, 2007.
Deposits
In total, average deposit balances have remained relatively stable over the past year, excluding the branch and related deposit sale. Consumer preference for higher-yielding money market accounts rather than more traditional transaction accounts, and the aggressiveness in market pricing for both transaction and certificate of deposit accounts, has made deposit growth difficult and has resulted in significant shifts in deposit mix. First Financial continues to expand its product offerings, primarily in the interest-bearing checking and savings account categories, to address competitive pressures and consumer demand.
Second Quarter 2007 vs. Second Quarter 2006
Average deposits for the second quarter 2007 decreased $92.2 million or 3.2 percent from the comparable period a year ago. The decrease was primarily a result of the previously mentioned sale of branches in the third quarter 2006 which included $108.6 million of actual deposit balances.
Second Quarter 2007 vs. First Quarter 2007
Average deposits for the second quarter 2007 remained relatively flat compared to the first quarter 2007. Average interest-bearing deposits decreased $3.0 million or 50 basis points, and average noninterest-bearing deposits increased $3.5 million or 3.5 percent, both on an annualized basis from the first quarter 2007.
Year-to-Date 2007 vs. Year-to-Date 2006
Year-to-date 2007 average total deposits decreased $93.5 million or 6.4 percent on an annualized basis from the comparable period in 2006. The decrease was primarily a result of the previously mentioned sale of branches in the third quarter 2006.
NONINTEREST INCOME
Second Quarter 2007 vs. Second Quarter 2006
Second quarter 2007 noninterest income was $14.1 million, an increase of $303,000 or 2.2 percent from the second quarter 2006. This increase was primarily due to higher trust and wealth management fees and bankcard income offset by lower service charge income on deposit accounts primarily as a result of the third quarter 2006 branch sales.
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Second Quarter 2007 vs. First Quarter 2007
On a linked-quarter basis, total noninterest income decreased $612,000 or 4.2 percent. Excluding the first quarter 2007 gain on the sale of residential mortgage servicing rights, total noninterest income increased 3.3 percent in the second quarter 2007. The second quarter 2007 included increases in service charge income on deposit accounts, trust and wealth management fees, and bankcard income totaling $1.1 million or 10.9 percent, which were more than offset by the $1.1 million first quarter 2007 gain on the sale of residential mortgage servicing rights and higher earnings from bank-owned life insurance.
Year-to-Date 2007 vs. Year-to-Date 2006
Year-to-date noninterest income was $28.9 million in 2007 compared to $26.8 million in 2006, a $2.1 million or 7.7 percent increase. This increase is primarily due to the gain on the sale of residential mortgage servicing rights in the first quarter 2007 and related lower amortization expense, the first quarter 2006 loss on sale of investment securities, higher trust and wealth management fees, bankcard income, and earnings from bank-owned life insurance. These increases were offset by lower service charge income on deposit accounts primarily as a result of the third quarter 2006 branch sales.
NONINTEREST EXPENSE
Second Quarter 2007 vs. Second Quarter 2006
Total noninterest expense decreased $9.2 million or 23.9 percent during the second quarter 2007 as compared to the second quarter 2006 primarily due to the following:
| | • | | decreases in salaries and benefits of $6.0 million primarily due to the $2.5 million reduction in severance costs, $1.5 million reduction in salaries and other performance and incentive-based compensation, $831,000 reduction in pension and other retirement-related expenses, and $782,000 reduction in health care costs as a result of lower staffing levels |
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| | • | | decreases in data processing of $2.6 million primarily due to the $1.1 million in early termination fees on technology contracts incurred in the second quarter 2006 and the impact of First Financial’s 2006 technology upgrade in which the company moved from an out-sourced to an in-house data processing environment |
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| | • | | decreases in professional services of $766,000 primarily due to 2006 costs associated with our branding initiative, branch staffing, and recruiting fees, combined with an overall reduction in outside consulting usage |
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Second Quarter 2007 vs. First Quarter 2007
On a linked-quarter basis, noninterest expense was $1.8 million or 5.7 percent less than the first quarter 2007. The decrease in noninterest expense was primarily due to decreased salaries and other performance and incentive-based compensation of $1.0 million and decreased severance costs of $805,000.
Year-to-Date 2007 vs. Year-to-Date 2006
Year-to-date noninterest expense was $60.7 million in 2007 compared to $77.6 million in 2006, a $16.9 million or 21.8 percent decrease. When the first six months of 2007 and 2006 are adjusted for the items shown below, noninterest expense decreased $9.4 million or 13.7 percent.
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| | | YTD 2Q07 | | | YTD 2Q06 | | | $ Change | | | % Change | |
| Total noninterest expense | | $ | 60,650 | | | $ | 77,561 | | | $ | (16,911 | ) | | | (21.8 | )% |
| Q1 items: | | | | | | | | | | | | | | | | |
| Debt extinguishment prepayment penalty | | | — | | | | (4,295 | ) | | | 4,295 | | | | — | |
| Losses on properties | | | — | | | | (354 | ) | | | 354 | | | | — | |
| Severance | | | (933 | ) | | | (155 | ) | | | (778 | ) | | | — | |
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| Q1 items subtotal | | | (933 | ) | | | (4,804 | ) | | | 3,871 | | | | — | |
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| Q2 items: | | | | | | | | | | | | | | | | |
| Technology contract early termination costs | | | — | | | | (1,073 | ) | | | 1,073 | | | | — | |
| Losses on properties | | | (58 | ) | | | (137 | ) | | | 79 | | | | — | |
| Severance | | | (128 | ) | | | (2,601 | ) | | | 2,473 | | | | — | |
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| Q2 items subtotal | | | (186 | ) | | | (3,811 | ) | | | 3,625 | | | | — | |
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| Adjusted total noninterest expense | | $ | 59,531 | | | $ | 68,946 | | | $ | (9,415 | ) | | | (13.7 | )% |
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The following items contributed to the adjusted $9.4 million decrease in noninterest expense from the first six months of 2006:
| | • | | decreases in salaries and benefits of $5.5 million, excluding the year-to-date $1.7 million reduction in severance costs, primarily due to the $2.2 million reduction in salaries and other performance and incentive-based compensation, $1.8 million reduction in pension and other retirement-related expenses, and $828,000 reduction in health care costs |
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| | • | | decreases in data processing of $2.6 million, excluding the $1.1 million reduction in technology early termination fees, primarily due to the impact of First Financial’s 2006 technology upgrade in which the company moved from an out-sourced to an in-house data processing environment |
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| | • | | decreases in professional services of $1.4 million primarily due to 2006 costs associated with our corporate reorganization, branding initiative, branch staffing, and recruiting fees, combined with an overall reduction in outside consulting usage |
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INCOME TAXES
Income tax expense was $4.0 million and $2.4 million for the three months ended June 30, 2007, and 2006, respectively. The effective tax rate for the second quarter 2007, and 2006, was 33.0 percent and 35.3 percent, respectively. Income tax expense was $8.2 million and $3.9 million for the six months ended June 30, 2007, and 2006, respectively. The effective tax rate for the six months ended June 30, 2007, and 2006, was 33.0 percent and 32.2 percent, respectively.
CREDIT QUALITY
Second Quarter 2007 vs. Second Quarter 2006
Second quarter 2007 net charge-offs were $1.4 million, an annualized 23 basis points of average loans, compared to second quarter 2006 net charge-offs of $2.6 million, an annualized 40 basis points of average loans, excluding the second quarter 2006 $8.3 million impact from the transfer of approximately $38 million of loans to loans held for sale. This lower level of net charge-offs in the second quarter 2007 is primarily due to lower commercial and commercial real estate loan charge-offs.
Total underperforming assets at the end of the second quarter 2007 of $17.2 million increased $1.4 million from $15.8 million at the end of the second quarter 2006 primarily due to higher commercial and commercial real estate nonaccrual loans. The ratio of nonperforming assets to ending loans increased from 58 basis points at the end of the second quarter 2006 to 67 basis points at the end of the second quarter 2007, partially driven by a reduction in total loans.
First Financial’s allowance for loan and lease losses to period-end loans ratio was 1.10 percent, flat compared to the first quarter 2007. A large percentage of underperforming assets are secured by real estate and this collateral has been appropriately considered in establishing the allowance for loan and lease losses at June 30, 2007. It is management’s belief that the second quarter 2007 allowance for loan and lease losses of $28.1 million is adequate to absorb probable credit losses inherent in the portfolio.
Second Quarter 2007 vs. First Quarter 2007
Second quarter 2007 net charge-offs were $1.4 million, an annualized 23 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.
Total underperforming assets increased $3.1 million from $14.1 million at the end of the first quarter 2007 to $17.2 million at the end of the second quarter 2007 primarily due to the transfer of four commercial loan relationships to nonaccrual status. The ratio of nonperforming assets to ending loans increased from 56 basis points at the end of the first quarter 2007 to 67 basis points at the end of the second quarter 2007.
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For further details on the quarter-over-quarter changes in credit quality, please see the attached Credit Quality schedule.
Earnings Conference Call and Webcast
On July 25, 2007, First Financial will host an earnings conference call that will be webcast live at 1:00 p.m. EDT. The presenters will be Claude E. Davis, president and chief executive officer, and J. Franklin Hall, senior vice president and chief financial officer. Anyone may participate in the conference call by calling 1-877-407-8031 (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, 2006. 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 2006 Form 10-K and other public documents filed with the SEC. These documents are available on our investor relations website atwww.bankatfirst.com and on the SEC’s website atwww.sec.gov.
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FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousand, except per share)
(Unaudited)
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| | | Three months ended, | | | Six months ended | |
| | | Jun. 30, | | | Mar. 31, | | | Dec. 31, | | | Sep. 30, | | | Jun. 30, | | | Jun. 30, | |
| | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2006 | | | 2007 | | | 2006 | |
RESULTS OF OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 29,601 | | | $ | 30,403 | | | $ | 30,104 | | | $ | 30,823 | | | $ | 31,947 | | | $ | 60,004 | | | $ | 64,146 | |
| Net income | | $ | 8,172 | | | $ | 8,435 | | | $ | 827 | | | $ | 12,119 | | | $ | 4,358 | | | $ | 16,607 | | | $ | 8,325 | |
| Net earnings per common share — basic | | $ | 0.21 | | | $ | 0.22 | | | $ | 0.02 | | | $ | 0.31 | | | $ | 0.11 | | | $ | 0.43 | | | $ | 0.21 | |
| Net earnings per common share — diluted | | $ | 0.21 | | | $ | 0.22 | | | $ | 0.02 | | | $ | 0.31 | | | $ | 0.11 | | | $ | 0.43 | | | $ | 0.21 | |
| Dividends declared per common share | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.32 | | | $ | 0.32 | |
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KEY FINANCIAL RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.00 | % | | | 1.04 | % | | | 0.10 | % | | | 1.40 | % | | | 0.51 | % | | | 1.02 | % | | | 0.48 | % |
| Return on average shareholders’ equity | | | 11.61 | % | | | 11.94 | % | | | 1.10 | % | | | 16.09 | % | | | 5.90 | % | | | 11.78 | % | | | 5.65 | % |
| Return on average tangible shareholders’ equity | | | 12.95 | % | | | 13.31 | % | | | 1.24 | % | | | 18.20 | % | | | 6.70 | % | | | 13.13 | % | | | 6.40 | % |
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| Net interest margin | | | 3.97 | % | | | 4.12 | % | | | 3.95 | % | | | 3.93 | % | | | 4.11 | % | | | 4.05 | % | | | 4.07 | % |
Net interest margin (fully tax equivalent)(1) | | | 4.05 | % | | | 4.20 | % | | | 4.05 | % | | | 4.01 | % | | | 4.20 | % | | | 4.12 | % | | | 4.16 | % |
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| Average shareholders’ equity to average assets | | | 8.58 | % | | | 8.68 | % | | | 8.98 | % | | | 8.72 | % | | | 8.64 | % | | | 8.63 | % | | | 8.53 | % |
Tier 1 Ratio (2) | | | 11.13 | % | | | 11.57 | % | | | 11.73 | % | | | 11.89 | % | | | 11.37 | % | | | 11.13 | % | | | 11.37 | % |
Total Capital Ratio (2) | | | 12.18 | % | | | 12.64 | % | | | 12.81 | % | | | 13.14 | % | | | 12.52 | % | | | 12.18 | % | | | 12.52 | % |
Leverage Ratio (2) | | | 9.04 | % | | | 9.08 | % | | | 9.02 | % | | | 8.85 | % | | | 8.72 | % | | | 9.04 | % | | | 8.72 | % |
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AVERAGE BALANCE SHEET ITEMS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans less unearned income(3) | | $ | 2,530,638 | | | $ | 2,490,252 | | | $ | 2,497,389 | | | $ | 2,580,005 | | | $ | 2,614,598 | | | $ | 2,510,557 | | | $ | 2,605,725 | |
| Investment securities | | | 364,050 | | | | 367,407 | | | | 381,985 | | | | 370,095 | | | | 380,532 | | | | 365,719 | | | | 438,707 | |
| Other earning assets | | | 93,986 | | | | 134,635 | | | | 142,320 | | | | 158,940 | | | | 122,413 | | | | 114,198 | | | | 131,910 | |
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| Total earning assets | | $ | 2,988,674 | | | $ | 2,992,294 | | | $ | 3,021,694 | | | $ | 3,109,040 | | | $ | 3,117,543 | | | $ | 2,990,474 | | | $ | 3,176,342 | |
| Total assets | | $ | 3,291,756 | | | $ | 3,299,346 | | | $ | 3,332,388 | | | $ | 3,426,417 | | | $ | 3,428,839 | | | $ | 3,295,530 | | | $ | 3,486,803 | |
| Noninterest-bearing deposits | | $ | 405,179 | | | $ | 401,698 | | | $ | 418,009 | | | $ | 401,685 | | | $ | 424,227 | | | $ | 403,448 | | | $ | 420,664 | |
| Interest-bearing deposits | | | 2,403,919 | | | | 2,406,913 | | | | 2,392,092 | | | | 2,492,898 | | | | 2,477,026 | | | | 2,405,408 | | | | 2,481,655 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total deposits | | $ | 2,809,098 | | | $ | 2,808,611 | | | $ | 2,810,101 | | | $ | 2,894,583 | | | $ | 2,901,253 | | | $ | 2,808,856 | | | $ | 2,902,319 | |
| Borrowings | | $ | 177,472 | | | $ | 181,613 | | | $ | 192,811 | | | $ | 200,856 | | | $ | 202,792 | | | $ | 179,531 | | | $ | 257,961 | |
| Shareholders’ equity | | $ | 282,354 | | | $ | 286,453 | | | $ | 299,320 | | | $ | 298,909 | | | $ | 296,087 | | | $ | 284,391 | | | $ | 297,325 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CREDIT QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance to ending loans | | | 1.10 | % | | | 1.10 | % | | | 1.10 | % | | | 1.27 | % | | | 1.15 | % | | | 1.10 | % | | | 1.15 | % |
| Allowance to nonperforming assets | | | 165.06 | % | | | 195.42 | % | | | 208.01 | % | | | 143.94 | % | | | 199.38 | % | | | 165.06 | % | | | 199.38 | % |
| Nonperforming assets to ending loans, plus OREO | | | 0.67 | % | | | 0.56 | % | | | 0.53 | % | | | 0.88 | % | | | 0.58 | % | | | 0.67 | % | | | 0.58 | % |
| Nonperforming assets to total assets | | | 0.52 | % | | | 0.42 | % | | | 0.40 | % | | | 0.67 | % | | | 0.44 | % | | | 0.52 | % | | | 0.44 | % |
Net charge-offs to average loans (annualized) (4) | | | 0.23 | % | | | 0.22 | % | | | 1.64 | % | | | 0.17 | % | | | 1.68 | % | | | 0.22 | % | | | 1.05 | % |
| | |
| (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, 2007 regulatory capital ratios are preliminary. |
| |
| (3) | | Includes loans held for sale. |
| |
| (4) | | December 31, 2006 and June 30, 2006 charge-offs include $4,375 and $8,356, respectively, in loans held for sale write-downs to the lower of cost or estimated fair value. |
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended, | | | Six months ended, | |
| | | Jun. 30, | | | Jun. 30, | |
| | | 2007 | | | 2006 | | | % Change | | | 2007 | | | 2006 | | | % Change | |
| Interest income | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 45,291 | | | $ | 44,386 | | | | 2.0 | % | | $ | 90,355 | | | $ | 87,243 | | | | 3.6 | % |
| Investment securities | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 3,762 | | | | 3,798 | | | | (0.9 | %) | | | 7,653 | | | | 8,939 | | | | (14.4 | %) |
| Tax-exempt | | | 911 | | | | 1,057 | | | | (13.8 | %) | | | 1,820 | | | | 2,161 | | | | (15.8 | %) |
| | | | | | | | | | | | | | | | | | | |
| Total investment securities interest | | | 4,673 | | | | 4,855 | | | | (3.7 | %) | | | 9,473 | | | | 11,100 | | | | (14.7 | %) |
| Federal funds sold | | | 1,241 | | | | 1,500 | | | | (17.3 | %) | | | 2,997 | | | | 3,082 | | | | (2.8 | %) |
| | | | | | | | | | | | | | | | | | | |
| Total interest income | | | 51,205 | | | | 50,741 | | | | 0.9 | % | | | 102,825 | | | | 101,425 | | | | 1.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 19,409 | | | | 16,554 | | | | 17.2 | % | | | 38,418 | | | | 31,487 | | | | 22.0 | % |
| Short-term borrowings | | | 984 | | | | 892 | | | | 10.3 | % | | | 1,980 | | | | 1,788 | | | | 10.7 | % |
| Long-term borrowings | | | 542 | | | | 709 | | | | (23.6 | %) | | | 1,101 | | | | 2,767 | | | | (60.2 | %) |
| Subordinated debentures and capital securities | | | 669 | | | | 639 | | | | 4.7 | % | | | 1,322 | | | | 1,237 | | | | 6.9 | % |
| | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | 21,604 | | | | 18,794 | | | | 15.0 | % | | | 42,821 | | | | 37,279 | | | | 14.9 | % |
| | | | | | | | | | | | | | | | | | | |
| Net interest income | | | 29,601 | | | | 31,947 | | | | (7.3 | %) | | | 60,004 | | | | 64,146 | | | | (6.5 | %) |
| Provision for loan and lease losses | | | 2,098 | | | | 360 | | | | 482.8 | % | | | 3,454 | | | | 1,112 | | | | 210.6 | % |
| | | | | | | | | | | | | | | | | | | |
| Net interest income after provision for loan and lease losses | | | 27,503 | | | | 31,587 | | | | (12.9 | %) | | | 56,550 | | | | 63,034 | | | | (10.3 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 5,296 | | | | 5,431 | | | | (2.5 | %) | | | 10,040 | | | | 10,520 | | | | (4.6 | %) |
| Trust and wealth management fees | | | 4,526 | | | | 4,139 | | | | 9.4 | % | | | 8,686 | | | | 8,328 | | | | 4.3 | % |
| Bankcard income | | | 1,424 | | | | 1,165 | | | | 22.2 | % | | | 2,664 | | | | 2,288 | | | | 16.4 | % |
| Net gains from sales of loans | | | 184 | | | | 259 | | | | (29.0 | %) | | | 346 | | | | 504 | | | | (31.3 | %) |
| Gain on sale of mortgage servicing rights | | | 0 | | | | 0 | | | | N/M | | | | 1,061 | | | | 0 | | | | N/M | |
| Losses on sales of investment securities | | | 0 | | | | 0 | | | | N/M | | | | 0 | | | | (476 | ) | | | N/M | |
| Other | | | 2,702 | | | | 2,835 | | | | (4.7 | %) | | | 6,079 | | | | 5,636 | | | | 7.9 | % |
| | | | | | | | | | | | | | | | | | | |
| Total noninterest income | | | 14,132 | | | | 13,829 | | | | 2.2 | % | | | 28,876 | | | | 26,800 | | | | 7.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 17,134 | | | | 23,110 | | | | (25.9 | %) | | | 36,095 | | | | 43,327 | | | | (16.7 | %) |
| Net occupancy | | | 2,484 | | | | 2,698 | | | | (7.9 | %) | | | 5,291 | | | | 5,537 | | | | (4.4 | %) |
| Furniture and equipment | | | 1,708 | | | | 1,334 | | | | 28.0 | % | | | 3,335 | | | | 2,814 | | | | 18.5 | % |
| Data processing | | | 818 | | | | 3,393 | | | | (75.9 | %) | | | 1,663 | | | | 5,337 | | | | (68.8 | %) |
| Marketing | | | 642 | | | | 647 | | | | (0.8 | %) | | | 1,511 | | | | 1,330 | | | | 13.6 | % |
| Communication | | | 798 | | | | 642 | | | | 24.3 | % | | | 1,663 | | | | 1,309 | | | | 27.0 | % |
| Professional services | | | 1,063 | | | | 1,829 | | | | (41.9 | %) | | | 2,069 | | | | 3,419 | | | | (39.5 | %) |
| Debt extinguishment | | | 0 | | | | 0 | | | | N/M | | | | 0 | | | | 4,295 | | | | N/M | |
| Other | | | 4,793 | | | | 5,031 | | | | (4.7 | %) | | | 9,023 | | | | 10,193 | | | | (11.5 | %) |
| | | | | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 29,440 | | | | 38,684 | | | | (23.9 | %) | | | 60,650 | | | | 77,561 | | | | (21.8 | %) |
| | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 12,195 | | | | 6,732 | | | | 81.1 | % | | | 24,776 | | | | 12,273 | | | | 101.9 | % |
| Income tax expense (benefit) | | | 4,023 | | | | 2,374 | | | | 69.5 | % | | | 8,169 | | | | 3,948 | | | | 106.9 | % |
| | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 8,172 | | | $ | 4,358 | | | | 87.5 | % | | $ | 16,607 | | | $ | 8,325 | | | | 99.5 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
ADDITIONAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
| Net earnings per common share — basic | | $ | 0.21 | | | $ | 0.11 | | | | | | | $ | 0.43 | | | $ | 0.21 | | | | | |
| Net earnings per common share — diluted | | $ | 0.21 | | | $ | 0.11 | | | | | | | $ | 0.43 | | | $ | 0.21 | | | | | |
| Dividends declared per common share | | $ | 0.16 | | | $ | 0.16 | | | | | | | $ | 0.32 | | | $ | 0.32 | | | | | |
| Book value per common share | | $ | 7.18 | | | $ | 7.37 | | | | | | | $ | 7.18 | | | $ | 7.37 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.00 | % | | | 0.51 | % | | | | | | | 1.02 | % | | | 0.48 | % | | | | |
| Return on average shareholders’ equity | | | 11.61 | % | | | 5.90 | % | | | | | | | 11.78 | % | | | 5.65 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income | | $ | 51,205 | | | $ | 50,741 | | | | 0.9 | % | | $ | 102,825 | | | $ | 101,425 | | | | 1.4 | % |
| Tax equivalent adjustment | | | 580 | | | | 696 | | | | (16.7 | %) | | | 1,156 | | | | 1,357 | | | | (14.8 | %) |
| | | | | | | | | | | | | | | | | | | |
| Interest income — tax equivalent | | | 51,785 | | | | 51,437 | | | | 0.7 | % | | | 103,981 | | | | 102,782 | | | | 1.2 | % |
| Interest expense | | | 21,604 | | | | 18,794 | | | | 15.0 | % | | | 42,821 | | | | 37,279 | | | | 14.9 | % |
| | | | | | | | | | | | | | | | | | | |
| Net interest income — tax equivalent | | $ | 30,181 | | | $ | 32,643 | | | | (7.5 | %) | | $ | 61,160 | | | $ | 65,503 | | | | (6.6 | %) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.97 | % | | | 4.12 | % | | | | | | | 4.05 | % | | | 4.07 | % | | | | |
Net interest margin (fully tax equivalent)(1) | | | 4.05 | % | | | 4.20 | % | | | | | | | 4.12 | % | | | 4.16 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Full-time equivalent employees | | | 1,158 | | | | 1,365 | | | | | | | | 1,158 | | | | 1,365 | | | | | |
| | |
| (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 QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | 2007 | |
| | | Second | | | First | | | | | | | % Change | |
| | | Quarter | | | Quarter | | | Year-to-Date | | | Linked Qtr. | |
| Interest income | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 45,291 | | | $ | 45,064 | | | $ | 90,355 | | | | 0.5 | % |
| Investment securities | | | | | | | | | | | | | | | | |
| Taxable | | | 3,762 | | | | 3,891 | | | | 7,653 | | | | (3.3 | %) |
| Tax-exempt | | | 911 | | | | 909 | | | | 1,820 | | | | 0.2 | % |
| | | | | | | | | | | | | |
| Total investment securities interest | | | 4,673 | | | | 4,800 | | | | 9,473 | | | | (2.6 | %) |
| Federal funds sold | | | 1,241 | | | | 1,756 | | | | 2,997 | | | | (29.3 | %) |
| | | | | | | | | | | | | |
| Total interest income | | | 51,205 | | | | 51,620 | | | | 102,825 | | | | (0.8 | %) |
| | | | | | | | | | | | | | | | | |
| Interest expense | | | | | | | | | | | | | | | | |
| Deposits | | | 19,409 | | | | 19,009 | | | | 38,418 | | | | 2.1 | % |
| Short-term borrowings | | | 984 | | | | 996 | | | | 1,980 | | | | (1.2 | %) |
| Long-term borrowings | | | 542 | | | | 559 | | | | 1,101 | | | | (3.0 | %) |
| Subordinated debentures and capital securities | | | 669 | | | | 653 | | | | 1,322 | | | | 2.5 | % |
| | | | | | | | | | | | | |
| Total interest expense | | | 21,604 | | | | 21,217 | | | | 42,821 | | | | 1.8 | % |
| | | | | | | | | | | | | |
| Net interest income | | | 29,601 | | | | 30,403 | | | | 60,004 | | | | (2.6 | %) |
| Provision for loan and lease losses | | | 2,098 | | | | 1,356 | | | | 3,454 | | | | 54.7 | % |
| | | | | | | | | | | | | |
| Net interest income after provision for loan and lease losses | | | 27,503 | | | | 29,047 | | | | 56,550 | | | | (5.3 | %) |
| | | | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 5,296 | | | | 4,744 | | | | 10,040 | | | | 11.6 | % |
| Trust and wealth management fees | | | 4,526 | | | | 4,160 | | | | 8,686 | | | | 8.8 | % |
| Bankcard income | | | 1,424 | | | | 1,240 | | | | 2,664 | | | | 14.8 | % |
| Net gains from sales of loans | | | 184 | | | | 162 | | | | 346 | | | | 13.6 | % |
| Gain on sale of mortgage servicing rights | | | 0 | | | | 1,061 | | | | 1,061 | | | | (100.0 | %) |
| Other | | | 2,702 | | | | 3,377 | | | | 6,079 | | | | (20.0 | %) |
| | | | | | | | | | | | | |
| Total noninterest income | | | 14,132 | | | | 14,744 | | | | 28,876 | | | | (4.2 | %) |
| | | | | | | | | | | | | | | | | |
| Noninterest expenses | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 17,134 | | | | 18,961 | | | | 36,095 | | | | (9.6 | %) |
| Net occupancy | | | 2,484 | | | | 2,807 | | | | 5,291 | | | | (11.5 | %) |
| Furniture and equipment | | | 1,708 | | | | 1,627 | | | | 3,335 | | | | 5.0 | % |
| Data processing | | | 818 | | | | 845 | | | | 1,663 | | | | (3.2 | %) |
| Marketing | | | 642 | | | | 869 | | | | 1,511 | | | | (26.1 | %) |
| Communication | | | 798 | | | | 865 | | | | 1,663 | | | | (7.7 | %) |
| Professional services | | | 1,063 | | | | 1,006 | | | | 2,069 | | | | 5.7 | % |
| Other | | | 4,793 | | | | 4,230 | | | | 9,023 | | | | 13.3 | % |
| | | | | | | | | | | | | |
| Total noninterest expenses | | | 29,440 | | | | 31,210 | | | | 60,650 | | | | (5.7 | %) |
| | | | | | | | | | | | | |
| Income before income taxes | | | 12,195 | | | | 12,581 | | | | 24,776 | | | | (3.1 | %) |
| Income tax expense (benefit) | | | 4,023 | | | | 4,146 | | | | 8,169 | | | | (3.0 | %) |
| | | | | | | | | | | | | |
| Net income | | $ | 8,172 | | | $ | 8,435 | | | $ | 16,607 | | | | (3.1 | %) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
ADDITIONAL DATA | | | | | | | | | | | | | | | | |
| Net earnings per common share — basic | | $ | 0.21 | | | $ | 0.22 | | | $ | 0.43 | | | | | |
| Net earnings per common share — diluted | | $ | 0.21 | | | $ | 0.22 | | | $ | 0.43 | | | | | |
| Dividends declared per common share | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.32 | | | | | |
| Book value per common share | | $ | 7.18 | | | $ | 7.29 | | | $ | 7.18 | | | | | |
| | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.00 | % | | | 1.04 | % | | | 1.02 | % | | | | |
| Return on average shareholders’ equity | | | 11.61 | % | | | 11.94 | % | | | 11.78 | % | | | | |
| | | | | | | | | | | | | | | | | |
| Interest income | | $ | 51,205 | | | $ | 51,620 | | | $ | 102,825 | | | | (0.8 | %) |
| Tax equivalent adjustment | | | 580 | | | | 576 | | | | 1,156 | | | | 0.7 | % |
| | | | | | | | | | | | | |
| Interest income — tax equivalent | | | 51,785 | | | | 52,196 | | | | 103,981 | | | | (0.8 | %) |
| Interest expense | | | 21,604 | | | | 21,217 | | | | 42,821 | | | | 1.8 | % |
| | | | | | | | | | | | | |
| Net interest income — tax equivalent | | $ | 30,181 | | | $ | 30,979 | | | $ | 61,160 | | | | (2.6 | %) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.97 | % | | | 4.12 | % | | | 4.05 | % | | | | |
Net interest margin (fully tax equivalent)(1) | | | 4.05 | % | | | 4.20 | % | | | 4.12 | % | | | | |
| | | | | | | | | | | | | | | | | |
| Full-time equivalent employees | | | 1,158 | | | | 1,166 | | | | 1,158 | | | | | |
| | |
| (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 QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2006 | |
| | | Fourth | | | Third | | | Second | | | First | | | Full | |
| | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Year | |
| Interest income | | | | | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 44,972 | | | $ | 45,484 | | | $ | 44,386 | | | $ | 42,857 | | | $ | 177,699 | |
| Investment securities | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 3,925 | | | | 3,728 | | | | 3,798 | | | | 5,141 | | | | 16,592 | |
| Tax-exempt | | | 985 | | | | 996 | | | | 1,057 | | | | 1,104 | | | | 4,142 | |
| | | | | | | | | | | | | | | | |
| Total investment securities interest | | | 4,910 | | | | 4,724 | | | | 4,855 | | | | 6,245 | | | | 20,734 | |
| Federal funds sold | | | 1,894 | | | | 2,116 | | | | 1,500 | | | | 1,582 | | | | 7,092 | |
| | | | | | | | | | | | | | | | |
| Total interest income | | | 51,776 | | | | 52,324 | | | | 50,741 | | | | 50,684 | | | | 205,525 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 19,349 | | | | 19,176 | | | | 16,554 | | | | 14,933 | | | | 70,012 | |
| Short-term borrowings | | | 1,027 | | | | 953 | | | | 892 | | | | 896 | | | | 3,768 | |
| Long-term borrowings | | | 609 | | | | 686 | | | | 709 | | | | 2,058 | | | | 4,062 | |
| Subordinated debentures and capital securities | | | 687 | | | | 686 | | | | 639 | | | | 598 | | | | 2,610 | |
| | | | | | | | | | | | | | | | |
| Total interest expense | | | 21,672 | | | | 21,501 | | | | 18,794 | | | | 18,485 | | | | 80,452 | |
| | | | | | | | | | | | | | | | |
| Net interest income | | | 30,104 | | | | 30,823 | | | | 31,947 | | | | 32,199 | | | | 125,073 | |
| Provision for loan and lease losses | | | 5,822 | | | | 2,888 | | | | 360 | | | | 752 | | | | 9,822 | |
| | | | | | | | | | | | | | | | |
| Net interest income after provision for loan and lease losses | | | 24,282 | | | | 27,935 | | | | 31,587 | | | | 31,447 | | | | 115,251 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 5,766 | | | | 5,672 | | | | 5,431 | | | | 5,089 | | | | 21,958 | |
| Trust and wealth management fees | | | 3,987 | | | | 3,949 | | | | 4,139 | | | | 4,189 | | | | 16,264 | |
| Bankcard income | | | 1,126 | | | | 1,023 | | | | 1,165 | | | | 1,123 | | | | 4,437 | |
| Net gains from sales of loans | | | 234 | | | | 2,468 | | | | 259 | | | | 245 | | | | 3,206 | |
| Gains on sales of branches | | | 0 | | | | 12,545 | | | | 0 | | | | 0 | | | | 12,545 | |
| Losses on sales of investment securities | | | 0 | | | | 0 | | | | 0 | | | | (476 | ) | | | (476 | ) |
| Other | | | 1,791 | | | | 2,623 | | | | 2,835 | | | | 2,801 | | | | 10,050 | |
| | | | | | | | | | | | | | | | |
| Total noninterest income | | | 12,904 | | | | 28,280 | | | | 13,829 | | | | 12,971 | | | | 67,984 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest expenses | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 21,234 | | | | 19,968 | | | | 23,110 | | | | 20,217 | | | | 84,529 | |
| Net occupancy | | | 2,699 | | | | 2,802 | | | | 2,698 | | | | 2,839 | | | | 11,038 | |
| Furniture and equipment | | | 1,496 | | | | 1,297 | | | | 1,334 | | | | 1,480 | | | | 5,607 | |
| Data processing | | | 1,574 | | | | 3,058 | | | | 3,393 | | | | 1,944 | | | | 9,969 | |
| Marketing | | | 1,022 | | | | 1,138 | | | | 647 | | | | 683 | | | | 3,490 | |
| Communication | | | 1,204 | | | | 821 | | | | 642 | | | | 667 | | | | 3,334 | |
| Professional services | | | 2,074 | | | | 2,342 | | | | 1,829 | | | | 1,590 | | | | 7,835 | |
| Debt extinguishment | | | 0 | | | | 0 | | | | 0 | | | | 4,295 | | | | 4,295 | |
| Other | | | 6,466 | | | | 5,759 | | | | 5,031 | | | | 5,162 | | | | 22,418 | |
| | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 37,769 | | | | 37,185 | | | | 38,684 | | | | 38,877 | | | | 152,515 | |
| | | | | | | | | | | | | | | | |
| Earnings before income taxes | | | (583 | ) | | | 19,030 | | | | 6,732 | | | | 5,541 | | | | 30,720 | |
| Income tax expense (benefit) | | | (1,410 | ) | | | 6,911 | | | | 2,374 | | | | 1,574 | | | | 9,449 | |
| | | | | | | | | | | | | | | | |
| Net earnings | | $ | 827 | | | $ | 12,119 | | | $ | 4,358 | | | $ | 3,967 | | | $ | 21,271 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
ADDITIONAL DATA | | | | | | | | | | | | | | | | | | | | |
| Net earnings per common share — basic | | $ | 0.02 | | | $ | 0.31 | | | $ | 0.11 | | | $ | 0.10 | | | $ | 0.54 | |
| Net earnings per common share — diluted | | $ | 0.02 | | | $ | 0.31 | | | $ | 0.11 | | | $ | 0.10 | | | $ | 0.54 | |
| Dividends declared per common share | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.64 | |
| Book value per common share | | $ | 7.27 | | | $ | 7.58 | | | $ | 7.37 | | | $ | 7.50 | | | $ | 7.27 | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.10 | % | | | 1.40 | % | | | 0.51 | % | | | 0.45 | % | | | 0.62 | % |
| Return on average shareholders’ equity | | | 1.10 | % | | | 16.09 | % | | | 5.90 | % | | | 5.39 | % | | | 7.13 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Interest income | | $ | 51,776 | | | $ | 52,324 | | | $ | 50,741 | | | $ | 50,684 | | | $ | 205,525 | |
| Tax equivalent adjustment | | | 712 | | | | 586 | | | | 696 | | | | 661 | | | | 2,655 | |
| | | | | | | | | | | | | | | | |
| Interest income — tax equivalent | | | 52,488 | | | | 52,910 | | | | 51,437 | | | | 51,345 | | | | 208,180 | |
| Interest expense | | | 21,672 | | | | 21,501 | | | | 18,794 | | | | 18,485 | | | | 80,452 | |
| | | | | | | | | | | | | | | | |
| Net interest income — tax equivalent | | $ | 30,816 | | | $ | 31,409 | | | $ | 32,643 | | | $ | 32,860 | | | $ | 127,728 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.95 | % | | | 3.93 | % | | | 4.11 | % | | | 4.04 | % | | | 4.01 | % |
Net interest margin (fully tax equivalent)(1) | | | 4.05 | % | | | 4.01 | % | | | 4.20 | % | | | 4.12 | % | | | 4.09 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Full-time equivalent employees | | | 1,214 | | | | 1,226 | | | | 1,365 | | | | 1,467 | | | | 1,214 | |
| | |
| (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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jun. 30, | | | Mar. 31, | | | Dec. 31, | | | Sep. 30, | | | Jun. 30, | | | % Change | | | % Change | |
| | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2006 | | | Linked Qtr. | | | Comparable Qtr. | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 87,808 | | | $ | 87,969 | | | $ | 119,407 | | | $ | 117,067 | | | $ | 152,581 | | | | (0.2 | %) | | | (42.5 | %) |
| Federal funds sold | | | 55,000 | | | | 159,200 | | | | 102,000 | | | | 101,000 | | | | 79,000 | | | | (65.5 | %) | | | (30.4 | %) |
| Investment securities held-to-maturity | | | 5,711 | | | | 7,769 | | | | 7,995 | | | | 8,059 | | | | 8,571 | | | | (26.5 | %) | | | (33.4 | %) |
| Investment securities available-for-sale | | | 313,575 | | | | 325,755 | | | | 324,259 | | | | 329,225 | | | | 326,633 | | | | (3.7 | %) | | | (4.0 | %) |
| Other investments | | | 33,969 | | | | 33,969 | | | | 33,969 | | | | 34,137 | | | | 34,827 | | | | 0.0 | % | | | (2.5 | %) |
| Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 747,292 | | | | 709,341 | | | | 673,445 | | | | 663,522 | | | | 646,662 | | | | 5.4 | % | | | 15.6 | % |
| Real estate — construction | | | 125,732 | | | | 107,867 | | | | 101,688 | | | | 92,434 | | | | 95,603 | | | | 16.6 | % | | | 31.5 | % |
| Real estate — commercial | | | 676,679 | | | | 647,126 | | | | 623,603 | | | | 625,535 | | | | 640,869 | | | | 4.6 | % | | | 5.6 | % |
| Real estate — retail | | | 580,005 | | | | 604,213 | | | | 628,579 | | | | 653,652 | | | | 721,383 | | | | (4.0 | %) | | | (19.6 | %) |
| Installment | | | 162,506 | | | | 180,116 | | | | 198,881 | | | | 219,677 | | | | 251,463 | | | | (9.8 | %) | | | (35.4 | %) |
| Home equity | | | 235,734 | | | | 228,660 | | | | 228,128 | | | | 231,741 | | | | 226,974 | | | | 3.1 | % | | | 3.9 | % |
| Credit card | | | 24,488 | | | | 23,678 | | | | 24,587 | | | | 23,083 | | | | 22,563 | | | | 3.4 | % | | | 8.5 | % |
| Lease financing | | | 608 | | | | 732 | | | | 923 | | | | 1,202 | | | | 1,396 | | | | (16.9 | %) | | | (56.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | | 2,553,044 | | | | 2,501,733 | | | | 2,479,834 | | | | 2,510,846 | | | | 2,606,913 | | | | 2.1 | % | | | (2.1 | %) |
| Less | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | | | 28,060 | | | | 27,407 | | | | 27,386 | | | | 31,888 | | | | 30,085 | | | | 2.4 | % | | | (6.7 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
| Net loans | | | 2,524,984 | | | | 2,474,326 | | | | 2,452,448 | | | | 2,478,958 | | | | 2,576,828 | | | | 2.0 | % | | | (2.0 | %) |
| Loans held for sale | | | 0 | | | | 0 | | | | 8,824 | | | | 0 | | | | 30,747 | | | | N/M | | | | N/M | |
| Premises and equipment | | | 79,079 | | | | 79,553 | | | | 79,609 | | | | 78,820 | | | | 78,707 | | | | (0.6 | %) | | | 0.5 | % |
| Goodwill | | | 28,261 | | | | 28,261 | | | | 28,261 | | | | 28,261 | | | | 28,261 | | | | 0.0 | % | | | 0.0 | % |
| Other intangibles | | | 1,003 | | | | 1,195 | | | | 5,842 | | | | 6,471 | | | | 6,927 | | | | (16.1 | %) | | | (85.5 | %) |
| Accrued interest and other assets | | | 143,277 | | | | 129,991 | | | | 138,985 | | | | 125,084 | | | | 132,303 | | | | 10.2 | % | | | 8.3 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 3,272,667 | | | $ | 3,327,988 | | | $ | 3,301,599 | | | $ | 3,307,082 | | | $ | 3,455,385 | | | | (1.7 | %) | | | (5.3 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | $ | 594,788 | | | $ | 627,996 | | | $ | 667,305 | | | $ | 672,841 | | | $ | 701,412 | | | | (5.3 | %) | | | (15.2 | %) |
| Savings | | | 588,229 | | | | 564,340 | | | | 526,663 | | | | 523,884 | | | | 549,732 | | | | 4.2 | % | | | 7.0 | % |
| Time | | | 1,211,182 | | | | 1,218,823 | | | | 1,179,852 | | | | 1,198,059 | | | | 1,243,896 | | | | (0.6 | %) | | | (2.6 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 2,394,199 | | | | 2,411,159 | | | | 2,373,820 | | | | 2,394,784 | | | | 2,495,040 | | | | (0.7 | %) | | | (4.0 | %) |
| Noninterest-bearing | | | 399,260 | | | | 420,521 | | | | 424,138 | | | | 381,937 | | | | 433,372 | | | | (5.1 | %) | | | (7.9 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
| Total deposits | | | 2,793,459 | | | | 2,831,680 | | | | 2,797,958 | | | | 2,776,721 | | | | 2,928,412 | | | | (1.3 | %) | | | (4.6 | %) |
| Short-term borrowings | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal funds purchased and securities sold under agreements to repurchase | | | 31,700 | | | | 39,998 | | | | 57,201 | | | | 54,129 | | | | 48,596 | | | | (20.7 | %) | | | (34.8 | %) |
| Other | | | 52,500 | | | | 52,246 | | | | 39,500 | | | | 39,000 | | | | 36,500 | | | | 0.5 | % | | | 43.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Total short-term borrowings | | | 84,200 | | | | 92,244 | | | | 96,701 | | | | 93,129 | | | | 85,096 | | | | (8.7 | %) | | | (1.1 | %) |
| Federal Home Loan Bank long-term debt | | | 59,021 | | | | 60,298 | | | | 63,762 | | | | 68,197 | | | | 82,025 | | | | (2.1 | %) | | | (28.0 | %) |
| Other long-term debt | | | 30,930 | | | | 30,930 | | | | 30,930 | | | | 30,930 | | | | 30,930 | | | | 0.0 | % | | | 0.0 | % |
| Accrued interest and other liabilities | | | 25,831 | | | | 28,481 | | | | 26,769 | | | | 38,580 | | | | 36,688 | | | | (9.3 | %) | | | (29.6 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 2,993,441 | | | | 3,043,633 | | | | 3,016,120 | | | | 3,007,557 | | | | 3,163,151 | | | | (1.6 | %) | | | (5.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common stock | | | 390,545 | | | | 393,091 | | | | 392,736 | | | | 392,156 | | | | 391,566 | | | | (0.6 | %) | | | (0.3 | %) |
| Retained earnings | | | 75,444 | | | | 73,505 | | | | 71,320 | | | | 76,783 | | | | 70,997 | | | | 2.6 | % | | | 6.3 | % |
| Accumulated comprehensive income | | | (16,168 | ) | | | (13,121 | ) | | | (13,375 | ) | | | (8,581 | ) | | | (11,875 | ) | | | 23.2 | % | | | 36.2 | % |
| Treasury stock, at cost | | | (170,595 | ) | | | (169,120 | ) | | | (165,202 | ) | | | (160,833 | ) | | | (158,454 | ) | | | 0.9 | % | | | 7.7 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Total Shareholders’ Equity | | | 279,226 | | | | 284,355 | | | | 285,479 | | | | 299,525 | | | | 292,234 | | | | (1.8 | %) | | | (4.5 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 3,272,667 | | | $ | 3,327,988 | | | $ | 3,301,599 | | | $ | 3,307,082 | | | $ | 3,455,385 | | | | (1.7 | %) | | | (5.3 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarterly Averages | | | Year-to-Date Averages | |
| | | Jun. 30, | | | Mar. 31, | | | Dec. 31, | | | Sep. 30, | | | Jun. 30, | | | Jun. 30, | |
| | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2006 | | | 2007 | | | 2006 | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 94,541 | | | $ | 94,384 | | | $ | 106,010 | | | $ | 109,896 | | | $ | 115,406 | | | $ | 94,463 | | | $ | 119,246 | |
| Federal funds sold | | | 93,986 | | | | 134,635 | | | | 142,320 | | | | 158,940 | | | | 122,413 | | | | 114,198 | | | | 131,910 | |
| Investment securities | | | 364,050 | | | | 367,407 | | | | 381,985 | | | | 370,095 | | | | 380,532 | | | | 365,719 | | | | 438,707 | |
| Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 733,936 | | | | 685,585 | | | | 664,476 | | | | 642,378 | | | | 626,912 | | | | 706,790 | | | | 603,924 | |
| Real estate — construction | | | 118,425 | | | | 100,192 | | | | 96,280 | | | | 94,135 | | | | 83,719 | | | | 109,359 | | | | 84,690 | |
| Real estate — commercial | | | 657,959 | | | | 637,642 | | | | 623,632 | | | | 611,602 | | | | 651,156 | | | | 650,961 | | | | 646,795 | |
| Real estate — retail | | | 592,811 | | | | 616,892 | | | | 649,638 | | | | 709,539 | | | | 743,948 | | | | 604,785 | | | | 753,100 | |
| Installment | | | 170,748 | | | | 189,397 | | | | 209,053 | | | | 235,492 | | | | 262,019 | | | | 180,021 | | | | 274,531 | |
| Home equity | | | 231,982 | | | | 229,112 | | | | 229,900 | | | | 229,583 | | | | 222,878 | | | | 230,555 | | | | 218,799 | |
| Credit card | | | 23,944 | | | | 23,809 | | | | 23,247 | | | | 22,741 | | | | 22,017 | | | | 23,877 | | | | 21,883 | |
| Lease financing | | | 671 | | | | 830 | | | | 1,067 | | | | 1,290 | | | | 1,599 | | | | 750 | | | | 1,827 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | | 2,530,476 | | | | 2,483,459 | | | | 2,497,293 | | | | 2,546,760 | | | | 2,614,248 | | | | 2,507,098 | | | | 2,605,549 | |
| Less | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | | | 27,482 | | | | 27,770 | | | | 30,894 | | | | 30,284 | | | | 40,445 | | | | 27,625 | | | | 41,418 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net loans | | | 2,502,994 | | | | 2,455,689 | | | | 2,466,399 | | | | 2,516,476 | | | | 2,573,803 | | | | 2,479,473 | | | | 2,564,131 | |
| Loans held for sale | | | 162 | | | | 6,793 | | | | 96 | | | | 33,245 | | | | 350 | | | | 3,459 | | | | 176 | |
| Premises and equipment | | | 79,491 | | | | 79,819 | | | | 79,123 | | | | 78,798 | | | | 76,150 | | | | 79,654 | | | | 74,860 | |
| Goodwill | | | 28,261 | | | | 28,261 | | | | 28,263 | | | | 28,260 | | | | 28,261 | | | | 28,261 | | | | 28,198 | |
| Other intangibles | | | 1,096 | | | | 5,464 | | | | 6,261 | | | | 6,721 | | | | 7,214 | | | | 3,268 | | | | 7,457 | |
| Accrued interest and other assets | | | 127,175 | | | | 126,894 | | | | 121,931 | | | | 123,986 | | | | 124,710 | | | | 127,035 | | | | 122,118 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 3,291,756 | | | $ | 3,299,346 | | | $ | 3,332,388 | | | $ | 3,426,417 | | | $ | 3,428,839 | | | $ | 3,295,530 | | | $ | 3,486,803 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | $ | 606,320 | | | $ | 646,548 | | | $ | 669,076 | | | $ | 724,253 | | | $ | 702,138 | | | $ | 626,323 | | | $ | 714,351 | |
| Savings | | | 578,357 | | | | 545,101 | | | | 526,550 | | | | 536,534 | | | | 540,242 | | | | 561,821 | | | | 528,985 | |
| Time | | | 1,219,242 | | | | 1,215,264 | | | | 1,196,466 | | | | 1,232,111 | | | | 1,234,646 | | | | 1,217,264 | | | | 1,238,319 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 2,403,919 | | | | 2,406,913 | | | | 2,392,092 | | | | 2,492,898 | | | | 2,477,026 | | | | 2,405,408 | | | | 2,481,655 | |
| Noninterest-bearing | | | 405,179 | | | | 401,698 | | | | 418,009 | | | | 401,685 | | | | 424,227 | | | | 403,448 | | | | 420,664 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total deposits | | | 2,809,098 | | | | 2,808,611 | | | | 2,810,101 | | | | 2,894,583 | | | | 2,901,253 | | | | 2,808,856 | | | | 2,902,319 | |
| Short-term borrowings | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal funds purchased and securities sold under agreements to repurchase | | | 34,280 | | | | 46,397 | | | | 59,196 | | | | 53,958 | | | | 49,563 | | | | 40,305 | | | | 50,572 | |
| Other | | | 52,849 | | | | 42,136 | | | | 35,648 | | | | 37,673 | | | | 39,819 | | | | 47,522 | | | | 42,804 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total short-term borrowings | | | 87,129 | | | | 88,533 | | | | 94,844 | | | | 91,631 | | | | 89,382 | | | | 87,827 | | | | 93,376 | |
| Federal Home Loan Bank long-term debt | | | 59,413 | | | | 62,150 | | | | 67,037 | | | | 78,295 | | | | 82,480 | | | | 60,774 | | | | 133,655 | |
| Other long-term debt | | | 30,930 | | | | 30,930 | | | | 30,930 | | | | 30,930 | | | | 30,930 | | | | 30,930 | | | | 30,930 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total borrowed funds | | | 177,472 | | | | 181,613 | | | | 192,811 | | | | 200,856 | | | | 202,792 | | | | 179,531 | | | | 257,961 | |
| Accrued interest and other liabilities | | | 22,832 | | | | 22,669 | | | | 30,156 | | | | 32,069 | | | | 28,707 | | | | 22,752 | | | | 29,198 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 3,009,402 | | | | 3,012,893 | | | | 3,033,068 | | | | 3,127,508 | | | | 3,132,752 | | | | 3,011,139 | | | | 3,189,478 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common stock | | | 391,536 | | | | 392,908 | | | | 392,931 | | | | 391,325 | | | | 392,354 | | | | 392,218 | | | | 392,509 | |
| Retained earnings | | | 74,049 | | | | 74,497 | | | | 78,162 | | | | 77,487 | | | | 73,237 | | | | 74,271 | | | | 73,472 | |
| Accumulated comprehensive income | | | (13,739 | ) | | | (13,725 | ) | | | (8,768 | ) | | | (10,708 | ) | | | (9,999 | ) | | | (13,732 | ) | | | (8,776 | ) |
| Treasury stock, at cost | | | (169,492 | ) | | | (167,227 | ) | | | (163,005 | ) | | | (159,195 | ) | | | (159,505 | ) | | | (168,366 | ) | | | (159,880 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
Total Shareholders’ Equity | | | 282,354 | | | | 286,453 | | | | 299,320 | | | | 298,909 | | | | 296,087 | | | | 284,391 | | | | 297,325 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 3,291,756 | | | $ | 3,299,346 | | | $ | 3,332,388 | | | $ | 3,426,417 | | | $ | 3,428,839 | | | $ | 3,295,530 | | | $ | 3,486,803 | |
| | | | | | | | | | | | | | | | | | | | | | |
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE / VOLUME ANALYSYS(1)
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarterly Averages | | | Year-to-Date Averages | |
| | | Jun. 30, 2007 | | | Mar. 31, 2007 | | | Jun. 30, 2006 | | | Jun. 30, 2007 | | | Jun. 30, 2006 | |
| | | Balance | | | Yield | | | Balance | | | Yield | | | Balance | | | Yield | | | Balance | | | Yield | | | Balance | | | Yield | |
Earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | $ | 364,050 | | | | 5.15 | % | | $ | 367,407 | | | | 5.30 | % | | $ | 380,532 | | | | 5.12 | % | | $ | 365,719 | | | | 5.22 | % | | $ | 438,707 | | | | 5.10 | % |
| Federal funds sold | | | 93,986 | | | | 5.30 | % | | | 134,635 | | | | 5.29 | % | | | 122,413 | | | | 4.91 | % | | | 114,198 | | | | 5.29 | % | | | 131,910 | | | | 4.71 | % |
Gross loans (2) | | | 2,530,638 | | | | 7.18 | % | | | 2,490,252 | | | | 7.34 | % | | | 2,614,598 | | | | 6.81 | % | | | 2,510,557 | | | | 7.26 | % | | | 2,605,725 | | | | 6.75 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | | | 2,988,674 | | | | 6.87 | % | | | 2,992,294 | | | | 7.00 | % | | | 3,117,543 | | | | 6.53 | % | | | 2,990,474 | | | | 6.93 | % | | | 3,176,342 | | | | 6.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonearning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (27,482 | ) | | | | | | | (27,770 | ) | | | | | | | (40,445 | ) | | | | | | | (27,625 | ) | | | | | | | (41,418 | ) | | | | |
| Cash and due from banks | | | 94,541 | | | | | | | | 94,384 | | | | | | | | 115,406 | | | | | | | | 94,463 | | | | | | | | 119,246 | | | | | |
| Accrued interest and other assets | | | 236,023 | | | | | | | | 240,438 | | | | | | | | 236,335 | | | | | | | | 238,218 | | | | | | | | 232,633 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 3,291,756 | | | | | | | $ | 3,299,346 | | | | | | | $ | 3,428,839 | | | | | | | $ | 3,295,530 | | | | | | | $ | 3,486,803 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | $ | 2,403,919 | | | | 3.24 | % | | $ | 2,406,913 | | | | 3.20 | % | | $ | 2,477,026 | | | | 2.68 | % | | $ | 2,405,408 | | | | 3.22 | % | | $ | 2,481,655 | | | | 2.56 | % |
| Borrowed funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 87,129 | | | | 4.53 | % | | | 88,533 | | | | 4.56 | % | | | 89,382 | | | | 4.00 | % | | | 87,827 | | | | 4.55 | % | | | 93,376 | | | | 3.86 | % |
| Federal Home Loan Bank long-term debt | | | 59,413 | | | | 3.66 | % | | | 62,150 | | | | 3.65 | % | | | 82,480 | | | | 3.45 | % | | | 60,774 | | | | 3.65 | % | | | 133,655 | | | | 4.17 | % |
| Other long-term debt | | | 30,930 | | | | 8.68 | % | | | 30,930 | | | | 8.56 | % | | | 30,930 | | | | 8.29 | % | | | 30,930 | | | | 8.62 | % | | | 30,930 | | | | 8.06 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total borrowed funds | | | 177,472 | | | | 4.96 | % | | | 181,613 | | | | 4.93 | % | | | 202,792 | | | | 4.43 | % | | | 179,531 | | | | 4.95 | % | | | 257,961 | | | | 4.53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 2,581,391 | | | | 3.36 | % | | | 2,588,526 | | | | 3.32 | % | | | 2,679,818 | | | | 2.81 | % | | | 2,584,939 | | | | 3.34 | % | | | 2,739,616 | | | | 2.74 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | | | 405,179 | | | | | | | | 401,698 | | | | | | | | 424,227 | | | | | | | | 403,448 | | | | | | | | 420,664 | | | | | |
| Other liabilities | | | 22,832 | | | | | | | | 22,669 | | | | | | | | 28,707 | | | | | | | | 22,752 | | | | | | | | 29,198 | | | | | |
| Shareholders’ equity | | | 282,354 | | | | | | | | 286,453 | | | | | | | | 296,087 | | | | | | | | 284,391 | | | | | | | | 297,325 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities & shareholders’ equity | | $ | 3,291,756 | | | | | | | $ | 3,299,346 | | | | | | | $ | 3,428,839 | | | | | | | $ | 3,295,530 | | | | | | | $ | 3,486,803 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (1) | | $ | 29,601 | | | | | | | $ | 30,403 | | | | | | | $ | 31,947 | | | | | | | $ | 60,004 | | | | | | | $ | 64,146 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread (1) | | | | | | | 3.51 | % | | | | | | | 3.68 | % | | | | | | | 3.72 | % | | | | | | | 3.59 | % | | | | | | | 3.70 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin (1) | | | | | | | 3.97 | % | | | | | | | 4.12 | % | | | | | | | 4.11 | % | | | | | | | 4.05 | % | | | | | | | 4.07 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Not tax equivalent. |
| |
| (2) | | Loans held for sale and nonaccrual loans are both included in gross loans. |
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE / VOLUME ANALYSYS(1)
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Linked Qtr. Income Variance | | | Comparable Qtr. Income Variance | | | Year-to-Date Income Variance | |
| | | Rate | | | Volume | | | Total | | | Rate | | | Volume | | | Total | | | Rate | | | Volume | | | Total | |
Earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | $ | (136 | ) | | $ | 9 | | | $ | (127 | ) | | $ | 30 | | | $ | (212 | ) | | $ | (182 | ) | | $ | 264 | | | $ | (1,891 | ) | | $ | (1,627 | ) |
| Federal funds sold | | | 2 | | | | (517 | ) | | | (515 | ) | | | 116 | | | | (375 | ) | | | (259 | ) | | | 380 | | | | (465 | ) | | | (85 | ) |
Gross loans (2) | | | (986 | ) | | | 1,213 | | | | 227 | | | | 2,408 | | | | (1,503 | ) | | | 905 | | | | 6,537 | | | | (3,425 | ) | | | 3,112 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | | | (1,120 | ) | | | 705 | | | | (415 | ) | | | 2,554 | | | | (2,090 | ) | | | 464 | | | | 7,181 | | | | (5,781 | ) | | | 1,400 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonearning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accrued interest and other assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | $ | 211 | | | $ | 189 | | | $ | 400 | | | $ | 3,445 | | | $ | (590 | ) | | $ | 2,855 | | | $ | 8,149 | | | $ | (1,218 | ) | | $ | 6,931 | |
| Borrowed funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | (7 | ) | | | (5 | ) | | | (12 | ) | | | 117 | | | | (25 | ) | | | 92 | | | | 317 | | | | (125 | ) | | | 192 | |
| Federal Home Loan Bank long-term debt | | | 2 | | | | (19 | ) | | | (17 | ) | | | 43 | | | | (210 | ) | | | (167 | ) | | | (346 | ) | | | (1,320 | ) | | | (1,666 | ) |
| Other long-term debt | | | 9 | | | | 7 | | | | 16 | | | | 30 | | | | — | | | | 30 | | | | 85 | | | | — | | | | 85 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total borrowed funds | | | 4 | | | | (17 | ) | | | (13 | ) | | | 190 | | | | (235 | ) | | | (45 | ) | | | 56 | | | | (1,445 | ) | | | (1,389 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 215 | | | | 172 | | | | 387 | | | | 3,635 | | | | (825 | ) | | | 2,810 | | | | 8,205 | | | | (2,663 | ) | | | 5,542 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities & shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (1) | | $ | (1,335 | ) | | $ | 533 | | | $ | (802 | ) | | $ | (1,081 | ) | | $ | (1,265 | ) | | $ | (2,346 | ) | | $ | (1,024 | ) | | $ | (3,118 | ) | | $ | (4,142 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (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)
| | | | | | | | | | | | | | | | | | | | | |
| | | Jun. 30, | | | Mar. 31, | | | Dec. 31, | | | Sep. 30, | | | Jun. 30, | |
| | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2006 | |
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY | | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 27,407 | | | $ | 27,386 | | | $ | 31,888 | | | $ | 30,085 | | | $ | 40,656 | |
| Provision for loan losses | | | 2,098 | | | | 1,356 | | | | 5,822 | | | | 2,888 | | | | 360 | |
| Gross charge-offs | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 920 | | | | 746 | | | | 5,675 | | | | 1,238 | | | | 3,521 | |
| Commercial real estate | | | 176 | | | | 146 | | | | 1,099 | | | | 119 | | | | 5,818 | |
| Retail real estate | | | 57 | | | | 116 | | | | 2,729 | | | | 111 | | | | 1,910 | |
| Installment | | | 604 | | | | 741 | | | | 776 | | | | 391 | | | | 562 | |
| Home equity | | | 149 | | | | 139 | | | | 331 | | | | 78 | | | | 11 | |
| All other | | | 224 | | | | 265 | | | | 306 | | | | 220 | | | | 189 | |
| | | | | | | | | | | | | | | | |
Total gross charge-offs (1) | | | 2,130 | | | | 2,153 | | | | 10,916 | | | | 2,157 | | | | 12,011 | |
| Recoveries | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 246 | | | | 269 | | | | 206 | | | | 458 | | | | 476 | |
| Commercial real estate | | | 48 | | | | 58 | | | | 20 | | | | 129 | | | | 57 | |
| Retail real estate | | | 10 | | | | 18 | | | | 4 | | | | 130 | | | | 78 | |
| Installment | | | 288 | | | | 346 | | | | 292 | | | | 315 | | | | 425 | |
| Home equity | | | 25 | | | | 76 | | | | 1 | | | | 0 | | | | 0 | |
| All other | | | 68 | | | | 51 | | | | 69 | | | | 40 | | | | 44 | |
| | | | | | | | | | | | | | | | |
| Total recoveries | | | 685 | | | | 818 | | | | 592 | | | | 1,072 | | | | 1,080 | |
| | | | | | | | | | | | | | | | |
| Total net charge-offs | | | 1,445 | | | | 1,335 | | | | 10,324 | | | | 1,085 | | | | 10,931 | |
| | | | | | | | | | | | | | | | |
| Ending allowance for loan losses | | $ | 28,060 | | | $ | 27,407 | | | $ | 27,386 | | | $ | 31,888 | | | $ | 30,085 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)(1) | | | | | | | | |
| Commercial | | | 0.37 | % | | | 0.28 | % | | | 3.27 | % | | | 0.48 | % | | | 1.95 | % |
| Commercial real estate | | | 0.08 | % | | | 0.06 | % | | | 0.69 | % | | | (0.01 | %) | | | 3.55 | % |
| Retail real estate | | | 0.03 | % | | | 0.06 | % | | | 1.66 | % | | | (0.01 | %) | | | 0.99 | % |
| Installment | | | 0.74 | % | | | 0.85 | % | | | 0.92 | % | | | 0.13 | % | | | 0.21 | % |
| Home equity | | | 0.21 | % | | | 0.11 | % | | | 0.57 | % | | | 0.13 | % | | | 0.02 | % |
| All other | | | 0.44 | % | | | 0.70 | % | | | 0.78 | % | | | 0.60 | % | | | 0.54 | % |
| | | | | | | | | | | | | | | | |
Total net charge-offs (1) | | | 0.23 | % | | | 0.22 | % | | | 1.64 | % | | | 0.17 | % | | | 1.68 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
|
| (1) December 31, 2006 and June 30, 2006 charge-offs include $4,375 and $8,356, respectively, in loans held for sale write-downs to the lower of cost or estimated fair market value. |
| | | | | | | | | | | | | | | | | | | | | |
| COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | | | | |
| Nonaccrual loans | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 6,812 | | | $ | 2,529 | | | $ | 2,610 | | | $ | 8,056 | | | $ | 4,301 | |
| Commercial real estate | | | 4,140 | | | | 4,947 | | | | 4,102 | | | | 4,487 | | | | 3,107 | |
| Retail real estate | | | 1,694 | | | | 1,311 | | | | 1,482 | | | | 3,604 | | | | 2,362 | |
| Installment | | | 681 | | | | 920 | | | | 1,328 | | | | 1,619 | | | | 1,529 | |
| Home equity | | | 1,048 | | | | 1,038 | | | | 698 | | | | 854 | | | | 831 | |
| All other | | | 21 | | | | 20 | | | | 16 | | | | 72 | | | | 72 | |
| | | | | | | | | | | | | | | | |
| Total nonaccrual loans | | | 14,396 | | | | 10,765 | | | | 10,236 | | | | 18,692 | | | | 12,202 | |
| Restructured loans | | | 581 | | | | 588 | | | | 596 | | | | 603 | | | | 610 | |
| | | | | | | | | | | | | | | | |
| Total nonperforming loans | | | 14,977 | | | | 11,353 | | | | 10,832 | | | | 19,295 | | | | 12,812 | |
| Other real estate owned (OREO) | | | 2,023 | | | | 2,672 | | | | 2,334 | | | | 2,859 | | | | 2,277 | |
| | | | | | | | | | | | | | | | |
| Total nonperforming assets | | | 17,000 | | | | 14,025 | | | | 13,166 | | | | 22,154 | | | | 15,089 | |
| | | | | | | | | | | | | | | | | | | | | |
| Accruing loans past due 90 days or more | | | 165 | | | | 81 | | | | 185 | | | | 788 | | | | 758 | |
| | | | | | | | | | | | | | | | |
| Total underperforming assets | | $ | 17,165 | | | $ | 14,106 | | | $ | 13,351 | | | $ | 22,942 | | | $ | 15,847 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
CREDIT QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses to | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | | 194.92 | % | | | 254.59 | % | | | 267.55 | % | | | 170.60 | % | | | 246.56 | % |
| Nonperforming assets | | | 165.06 | % | | | 195.42 | % | | | 208.01 | % | | | 143.94 | % | | | 199.38 | % |
| Total ending loans | | | 1.10 | % | | | 1.10 | % | | | 1.10 | % | | | 1.27 | % | | | 1.15 | % |
| Nonaccrual loans to total loans | | | 0.56 | % | | | 0.43 | % | | | 0.41 | % | | | 0.74 | % | | | 0.47 | % |
| Nonperforming assets to | | | | | | | | | | | | | | | | | | | | |
| Ending loans, plus OREO | | | 0.67 | % | | | 0.56 | % | | | 0.53 | % | | | 0.88 | % | | | 0.58 | % |
| Total assets | | | 0.52 | % | | | 0.42 | % | | | 0.40 | % | | | 0.67 | % | | | 0.44 | % |
FIRST FINANCIAL BANCORP.
CAPITAL DATA
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | Six months ended, |
| | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Jun. 30, | | Jun. 30, |
| | | 2007 | | 2007 | | 2006 | | 2006 | | 2006 | | 2007 | | 2006 |
PER COMMON SHARE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Market Price | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 15.72 | | | $ | 16.76 | | | $ | 17.50 | | | $ | 16.04 | | | $ | 16.68 | | | $ | 16.76 | | | $ | 18.32 | |
| Low | | $ | 14.43 | | | $ | 14.83 | | | $ | 15.52 | | | $ | 14.20 | | | $ | 14.63 | | | $ | 14.43 | | | $ | 14.63 | |
| Close | | $ | 14.99 | | | $ | 15.11 | | | $ | 16.61 | | | $ | 15.91 | | | $ | 14.91 | | | $ | 14.99 | | | $ | 14.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average shares outstanding — basic | | | 38,965,409 | | | | 39,121,105 | | | | 39,377,735 | | | | 39,612,408 | | | | 39,605,631 | | | | 39,042,827 | | | | 39,582,995 | |
| Average shares outstanding — diluted | | | 38,967,061 | | | | 39,135,637 | | | | 39,395,456 | | | | 39,619,786 | | | | 39,619,729 | | | | 39,050,919 | | | | 39,616,238 | |
| Ending shares outstanding | | | 38,883,083 | | | | 39,001,843 | | | | 39,245,407 | | | | 39,507,716 | | | | 39,660,341 | | | | 38,883,083 | | | | 39,660,341 | |
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REGULATORY CAPITAL | | Preliminary | | | | | | | | | | | | | | | | | | Preliminary | | | | |
| Tier 1 Capital | | $ | 295,996 | | | $ | 298,020 | | | $ | 299,199 | | | $ | 300,551 | | | $ | 296,334 | | | $ | 295,996 | | | $ | 296,334 | |
| Tier 1 Ratio | | | 11.13 | % | | | 11.57 | % | | | 11.73 | % | | | 11.89 | % | | | 11.37 | % | | | 11.13 | % | | | 11.37 | % |
| Total Capital | | $ | 324,056 | | | $ | 325,550 | | | $ | 326,779 | | | $ | 332,302 | | | $ | 326,464 | | | $ | 324,056 | | | $ | 326,464 | |
| Total Capital Ratio | | | 12.18 | % | | | 12.64 | % | | | 12.81 | % | | | 13.14 | % | | | 12.52 | % | | | 12.18 | % | | | 12.52 | % |
| Total Risk-Adjusted Assets | | $ | 2,659,915 | | | $ | 2,575,218 | | | $ | 2,551,505 | | | $ | 2,528,102 | | | $ | 2,606,871 | | | $ | 2,659,915 | | | $ | 2,606,871 | |
| Leverage Ratio | | | 9.04 | % | | | 9.08 | % | | | 9.02 | % | | | 8.85 | % | | | 8.72 | % | | | 9.04 | % | | | 8.72 | % |
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OTHER CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending shareholders’ equity to ending assets | | | 8.53 | % | | | 8.54 | % | | | 8.65 | % | | | 9.06 | % | | | 8.46 | % | | | 8.53 | % | | | 8.46 | % |
| Ending tangible shareholders’ equity to ending tangible assets | | | 7.71 | % | | | 7.73 | % | | | 7.69 | % | | | 8.09 | % | | | 7.52 | % | | | 7.71 | % | | | 7.52 | % |
| Average shareholders’ equity to average assets | | | 8.58 | % | | | 8.68 | % | | | 8.98 | % | | | 8.72 | % | | | 8.64 | % | | | 8.63 | % | | | 8.53 | % |
| Average tangible shareholders’ equity to average tangible assets | | | 7.76 | % | | | 7.86 | % | | | 8.04 | % | | | 7.79 | % | | | 7.69 | % | | | 7.81 | % | | | 7.58 | % |
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REPURCHASE PROGRAM(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares repurchased | | | 252,000 | | | | 244,000 | | | | 252,000 | | | | 152,000 | | | | 0 | | | | 496,000 | | | | 0 | |
| Average share repurchase price | | $ | 15.07 | | | $ | 16.11 | | | $ | 16.64 | | | $ | 15.59 | | | | — | | | $ | 15.58 | | | | — | |
| Total cost of shares repurchased | | $ | 3,797,343 | | | $ | 3,930,945 | | | $ | 4,192,464 | | | $ | 2,369,286 | | | | — | | | $ | 7,728,288 | | | | — | |
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| (1) | | Represents share repurchases as part of publicly announced plans. |
