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