1
Return on Average Assets &
Return on Average Shareholders’ Equity
Table I
EXHIBIT 99.2
4Q-08
3Q-08
4Q-07
2008
2007
Return on Average Assets
0.23%
0.66%
1.27%
0.67%
1.08%
Return on Average Shareholders' Equity
2.89%
8.24%
15.37%
8.21%
12.73%
Quarter
Year
2
Summary of Significant Items
Table II
Table II
Full-Year
4Q
3Q
Full-Year
4Q
3Q
Loss on FHLMC shares*
(3,738)
$
(137)
$
(3,400)
$
-
$
-
$
-
$
Increase in Loan Loss Reserve & Higher
Charge-offs
(7,539)
(7,539)
-
-
-
-
Gain on Sale of Merchant Payment Processing
Portfolio
-
-
-
5,501
5,501
-
Pension Settlement Charges
-
-
-
(2,222)
(2,222)
-
Gains on Sales of Investment Securities
(VISA 2008; MasterCard 2007)
1,585
-
-
367
-
367
Gain on Sale of Mortgage Servicing Rights
-
-
-
1,061
-
-
Visa Member Litigation Charges
-
-
-
(461)
(461)
-
Impact to Pre-Tax Net Income
(9,692)
$
(7,676)
$
(3,400)
$
4,246
$
2,818
$
367
$
After-Tax Impact to Earnings Per Diluted Share
(0.17)
$
(0.13)
$
(0.06)
$
0.07
$
0.05
$
0.01
$
*
2008
Loss related to the company's investment in 200,000 Federal Home Loan Mortgage Corporation (FHLMC) perpetual preferred series V shares.
($ in thousands, excluding per share data)
2007
3
Credit Quality Trends
Table III
December 31,
2008
September 30,
2008
June 30,
2008
March 31,
2008
December 31,
2007
December 31,
2008
December 31,
2007
Total Nonperforming Loans
18,185
$
14,038
$
15,366
$
15,253
$
14,680
$
18,185
$
14,680
$
Total Nonperforming Assets
22,213
$
18,648
$
19,129
$
17,621
$
17,316
$
22,213
$
17,316
$
Nonperforming Assets as a % of:
Period-End Loans, Plus Other Real Estate Owned
0.83%
0.70%
0.71%
0.67%
0.67%
0.83%
0.67%
Total Assets
0.60%
0.53%
0.55%
0.53%
0.51%
0.60%
0.51%
Nonperforming Loans as a % of Total Loans
0.68%
0.53%
0.57%
0.58%
0.56%
0.68%
0.56%
Allowance for Loan & Lease Losses
35,873
$
30,353
$
29,580
$
29,718
$
29,057
$
35,873
$
29,057
$
Allowance for Loan & Lease Losses as a % of:
Period-End Loans
1.34%
1.14%
1.11%
1.14%
1.12%
1.34%
1.12%
Nonaccrual Loans
199.5%
219.5%
199.7%
202.3%
205.9%
199.5%
205.9%
Nonperforming Loans
197.3%
216.2%
192.5%
194.8%
197.9%
197.3%
197.9%
Total Net Charge-Offs
4,955
$
2,446
$
2,631
$
2,652
$
1,719
$
12,594
$
5,981
$
Annualized Net-Charge-Offs as a % of Average
Loans & Leases
0.73%
0.36%
0.40%
0.40%
0.26%
0.47%
0.24%
($ in thousands)
Three Months Ended
Twelve Months Ended
4
Capital Management
Table IV
FFBC
Bank
Regulatory
"well-capitalized"
minimum
Leverage Ratio
10.00%
8.77%
5%
Tier 1 Capital Ratio
12.38%
10.86%
6%
Total Risk-based Capital Ratio
13.62%
12.37%
10%
EOP Tangible Equity /
EOP Tangible Assets
8.70%
N/A
N/A
EOP Tangible Common Equity /
EOP Tangible Assets
6.52%
N/A
N/A
N/A = not applicable
5
Net Interest Income &
Net Interest Margin
Table V
4Q-08
3Q-08
4Q-07
2008
2007
Net Interest Income
30,129
$
29,410
$
29,079
$
116,202
$
118,500
$
Net Interest Margin
3.67%
3.68%
3.79%
3.71%
3.94%
Net Interest Margin
(fully tax equivalent)
3.71%
3.73%
3.86%
3.77%
4.01%
Quarter
($ in thousands)
Year
6
Noninterest Income
Table VI
4Q-08
3Q-08
4Q-07
2008
2007
Loss on FHLMC shares
(137)
$
(3,400)
$
-
$
(3,738)
$
-
$
Gain on Sale of Merchant Payment Processing
Portfolio
-
-
5,501
-
5,501
Gain on Sale of Mortgage Servicing Rights
-
-
-
-
1,061
Gains on Sales of Investment Securities
(VISA 2008; MasterCard 2007)
-
-
-
1,585
367
Impact to Noninterest Income
(137)
$
(3,400)
$
5,501
$
(2,153)
$
6,929
$
Quarter
Year
($ in thousands)
7
Noninterest Expense
Table VII
Quarter
4Q-07
2008
2007
Pension Settlement Charges
2,222
$
-
$
2,222
$
Visa Member Litigation Charges
461
-
461
Liability for Retiree Medical Benefits
-
(1,285)
-
Severance Costs
-
-
1,620
(Gain) Loss on Properties & Fixed Assets
(227)
-
(575)
Impact to Noninterest Expense
2,456
$
(1,285)
$
3,728
$
Year
($ in thousands)
8
Investment Portfolio
Table VIII
($ in thousands, excluding book price and market value)
Base
% of
Book
Book
Book
12/31/2008
Gain/
Total
Value
Yield
Price
Market Value
(Loss)
Agency's
6.7%
$ 46,681
5.33
99.74
103.58
$ 1,731
CMO's (Agency)
19.4%
134,353
4.96
100.42
101.85
1,882
CMO's (Private)
0.0%
104
3.36
100.00
99.83
-
MBS's (Agency)
63.3%
438,249
5.10
100.66
102.37
7,292
Subtotal
89.4%
619,387
5.09
100.54
102.34
$ 10,905
Municipal
6.0%
$ 41,638
7.19
99.32
100.14
344
$
Other *
4.6%
31,673
5.01
100.86
100.32
(169)
Subtotal
10.6%
$ 73,311
6.25
99.98
100.22
175
$
Total Investment Portfolio
100.0%
692,698
$
5.21
100.48
102.12
11,080
$
Net Unrealized Gain/(Loss)
11,080
$
Aggregate Gains
11,250
$
Aggregate Losses
(170)
$
Net Unrealized Gain/(Loss) % of Book Value
1.60%
* Other includes $28.0 million of regulatory stock
