EXHIBIT 99.1
First Financial Bancorp Reports Second Quarter 2011 Financial Results
Introducing Variable Dividend – 125% Increase in Total Dividends Paid to Shareholders for Quarter
Cincinnati, Ohio – July 28, 2011 – First Financial Bancorp (Nasdaq: FFBC) (“First Financial” or the “Company”) announced today financial and operational results for the second quarter 2011 and for the six month period ended June 30, 2011.
Second quarter 2011 net income was $16.0 million and earnings per diluted common share were $0.27. This compares with first quarter 2011 net income of $17.2 million and earnings per diluted common share of $0.29 and second quarter 2010 net income of $17.8 million and earnings per diluted common share of $0.30.
For the six month period ended June 30, 2011, net income and net income available to common shareholders were $33.2 million and earnings per diluted common share were $0.57 as compared to net income of $29.4 million, net income available to common shareholders of $27.5 million and earnings per diluted common share of $0.48 for the six month period ended June 30, 2010.
| | § | 83rd consecutive quarter of profitability |
| | § | Net income available to common shareholders for the six months ended June 30, 2011 increased 20.6% compared to the first half 2010 |
| | § | Adjusted pre-tax, pre-provision income increased $3.8 million, or 13.9%, compared to the first quarter 2011 |
| | § | Continued strong performance |
| | - | Quarterly return on average assets of 1.03% |
| | - | Quarterly return on risk-weighted assets of 1.89% |
| | - | Quarterly return on average shareholders’ equity of 9.05% |
| | § | Board of directors has authorized a 100% dividend payout ratio comprised of a recurring dividend and a variable dividend resulting in a 125% increase for the upcoming dividend |
| | - | Recurring dividend based on stated payout ratio of between 40% - 60%; currently $0.12 per share |
| | - | Variable dividend based on remainder of quarterly earnings; $0.15 per share based on quarterly earnings |
| | § | Announced an agreement to acquire 16 Ohio-based branch locations from Liberty Savings Bank |
| | - | Transaction includes approximately $346.2 million of deposits and $146.7 million of in-market performing loans |
| | - | Significantly accelerates growth strategy in the key market of Dayton |
| | § | Average core deposit balances continue to grow |
| | - | Average strategic transaction and savings deposits increased $169.8 million, or 5.0%, during the quarter |
| | - | Average money market and savings account balances increased $295.6 million, or 22.0%, compared to the second quarter 2010 |
| | § | Capital ratios remain high as a result of earnings power |
| | - | Tangible common equity to tangible assets of 11.11% |
| | - | Tier 1 capital ratio of 20.15% |
| | - | Total risk-based capital of 21.43% |
| | § | Quarterly net interest margin remained strong at 4.61% |
| | - | Yield on acquired loans continues to enhance net interest margin |
| | - | $249.8 million of liquidity redeployed in investment securities |
| | - | Continued positive impact from runoff of retail and brokered CDs and balances in the exited markets of Michigan and Louisville |
| | § | Continued improvement in credit metrics |
| | - | Total nonperforming loans declined $6.6 million, or 8.1%, compared to the linked quarter |
| | - | Nonperforming loans to total loans declined to 2.65% as compared to 2.90% as of March 31, 2011 |
| | - | Provision for uncovered loan losses totaled $5.8 million, representing 100.5% of total net charge-offs for the quarter |
| | § | Balance sheet risk continues to remain low |
| | | FDIC loss share coverage on 30.8% of loan portfolio |
| | | 100% risk-weighted assets continue to represent less than 50% of balance sheet |
Claude Davis, President and Chief Executive Officer, commented, “Once again, First Financial delivered another quarter of solid performance demonstrating our ability to consistently produce a high level of earnings despite on-going challenges in our operating markets. Helping to drive earnings this quarter was the continued focus we have placed on managing costs and improving the efficiency of our operations. As a result of our efforts, our strategic noninterest expenses declined 4.3% compared to the linked quarter and 8.4% compared to the second quarter 2010.
It was also an exciting quarter for us as we announced the acquisition of 16 Ohio-based branch locations from Liberty Savings Bank, which will substantially enhance our presence in the Dayton area and leave us positioned as the largest community bank operating in that market. Our integration team is hard at work and, as we have previously reported, we expect the transaction to close during the third quarter.
Due to our strong capital position and continued earnings performance, we are constantly evaluating strategies to best deploy our capital in the most shareholder-friendly manner while also monitoring the evolving and uncertain regulatory landscape. As a result of this evaluation, we are announcing that the board of directors has authorized a 100% dividend payout ratio that will consist of two parts: a recurring dividend based on our stated payout ratio of 40% - 60% of earnings; and a variable dividend that will equal the remainder of our quarterly earnings. The variable dividend is expected to continue until we have acquisitions or organic capital utilization rates that equal or exceed our capital generation rates. Thus, we expect our next quarterly dividend to be $0.27 per share, payable on October 1, 2011.
We intend to manage our capital ratios at levels above our stated thresholds, which include a tangible common equity ratio of 7%, tier 1 leverage ratio of 8% and total risk based capital ratio of 13%. Each quarter, we will evaluate our capital levels based on expected growth plans and the aforementioned capital ratio thresholds.
Economic challenges in our strategic markets continue to impact loan growth as both businesses and consumers remain hesitant to access credit. While average total uncovered loan balances were down slightly compared to the prior quarter, our renewed focus on building a strong sales culture has produced positive results as average commercial loan balances have increased 6.8% compared to the second quarter 2010. New originations and renewals in our commercial and CRE portfolios were particularly strong during June and our pipeline of outstanding proposals and pending commitments at the end of the quarter was at its highest level in months.”
SECTION I – RESULTS OF OPERATIONS
NET INTEREST INCOME
Net interest income on a fully tax-equivalent basis for the second quarter 2011 was $66.1 million as compared to $67.6 million for the first quarter 2011 and $68.0 million as compared to the year-over-year period. Compared to the linked quarter, the decrease during the second quarter 2011 resulted from a decline in interest income earned on loans primarily driven by an 8.8% decrease in the balance of average covered loans outstanding. However, this decline was partially offset by an increase in interest earned on investments and lower interest expense on deposits.
The decrease compared to the year-over-year quarter was primarily driven by the 27.3% decline in average covered loan balances and the reduced yield on the FDIC indemnification asset, offset partially by higher interest income from investments and lower funding costs as a result of the continued runoff of higher cost time deposits and the prepayment of $232 million of FHLB advances during the third quarter 2010.
For the six month period ended June 30, 2011, net interest income on a fully tax-equivalent basis was $133.7 million as compared to $140.2 million for the comparable period in 2010. Similar to the quarterly year-over-year items noted above, the decrease was driven by the decline in average covered loan balances and the reduced yield on the FDIC indemnification asset, offset partially by higher interest income from investments and lower funding costs.
NET INTEREST MARGIN
Net interest margin was 4.61% for the second quarter 2011 as compared to 4.73% for the first quarter 2011 and 4.53% for the second quarter 2010. Net interest margin continued to be negatively impacted by the combination of normal amortization and paydowns in the acquired loan portfolio. However, the Company continued to use its liquidity to purchase investment securities, totaling $249.8 million during the quarter, plus it realized a full quarter’s impact from investment purchases that settled late in the first quarter 2011, helping to offset the margin decline from lower loan balances. Net interest margin also benefited from the expected runoff of retail and brokered certificates of deposit as well as runoff in deposits related to the exited markets of Michigan and Louisville.
Net interest margin for the six month period ended June 30, 2011 remained relatively flat at 4.67% as compared to 4.71% for the six month period ended June 30, 2010.
NONINTEREST INCOME
The following table presents noninterest income for the three months ended June 30, 2011, March 31, 2011 and June 30, 2010 highlighting the estimated impact of covered loan activity and other transition items on the Company’s reported balance.
| | | | | | | | | | |
| Table I | | | | | | | | | |
| | | For the Three Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | |
| (Dollars in thousands) | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | |
| Total noninterest income | | $ | 41,118 | | | $ | 43,658 | | | $ | 40,467 | |
| | | | | | | | | | | | | |
| Significant components of noninterest income | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Items likely to recur: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Accelerated discount on covered loans 1, 2 | | | 4,756 | | | | 5,783 | | | | 7,408 | |
| FDIC loss sharing income | | | 21,643 | | | | 23,435 | | | | 15,170 | |
| Other acquired-non-strategic items | | | (485 | ) | | | (552 | ) | | | 476 | |
| | | | | | | | | | | | | |
| Items expected not to recur: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| FDIC settlement and other items not expected to recur | | | (152 | ) | | | 125 | | | | 2,930 | |
| Total excluding items noted above | | $ | 15,356 | | | $ | 14,867 | | | $ | 14,483 | |
| | | | | | | | | | | | | |
1 See Section II for additional information 2 Net of the corresponding valuation adjustment on the FDIC indemnification asset |
During the quarterly periods presented above, excluding reimbursements due from the FDIC resulting from loss share agreements, covered loan activity continued to positively impact noninterest income due to loan sales and prepayments. No material sales of covered loans occurred during the second quarter 2011. This activity is discussed in more detail in Section II.
Excluding the items highlighted in Table I, estimated noninterest income earned in the second quarter 2011 was $15.4 million as compared to $14.9 million in the first quarter 2011 and $14.5 million in the second quarter 2010. The increase compared to the linked quarter was primarily driven by higher service charges on deposits, bankcard income and client derivative fees; offset partially by lower gain on sale from residential mortgage originations and trust and wealth management fees. Additionally, the Company recognized a gain of $429,000 resulting from the sale of certain loans originated by its franchise finance unit that had a net book value of approximately $9.3 million. Consistent with prior sales of franchise-related loans, the sale was conducted to lessen credit and geographic concentration risk within the franchise portfolio.
On a comparable basis, estimated noninterest income for the six months ended June 30, 2011 was $30.2 million as compared to $27.3 million for the six months ended June 30, 2010. The increase of $2.9 million, or 10.7%, was primarily attributable to higher gain on sale of franchise-related loans and residential mortgage originations, bankcard income, trust and wealth management fees and other noninterest income; offset partially by lower service charges on deposits and insurance income due to the Company’s decision to exit the insurance business in 2010.
NONINTEREST EXPENSE
The following table presents noninterest expense for the three months ended June 30, 2011, March 31, 2011and June 30, 2010 including the estimated effect of acquired-non-strategic operations, acquisition-related costs and other transition items.
| Table II | | | | | | | | | |
| | | For the Three Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | |
| (Dollars in thousands) | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | |
| Total noninterest expense | | $ | 52,497 | | | $ | 57,790 | | | $ | 55,819 | |
| | | | | | | | | | | | | |
| Significant components of noninterest expense | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Items likely to recur: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Acquired-non-strategic operating expenses 1 | | | 2,673 | | | | 3,911 | | | | 1,270 | |
Transition-related items 1 | | | 161 | | | | 196 | | | | 1,321 | |
| FDIC loss share support | | | 1,369 | | | | 783 | | | | 938 | |
| Loss share and covered asset expense | | | 3,376 | | | | 3,171 | | | | - | |
| | | | | | | | | | | | | |
| Items expected not to recur: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Acquisition-related costs 1 | | | 76 | | | | 116 | | | | 2,180 | |
| Other items not expected to recur | | | 1,140 | | | | 3,962 | | | | 2,387 | |
| Total excluding items noted above | | $ | 43,702 | | | $ | 45,651 | | | $ | 47,723 | |
| | | | | | | | | | | | | |
1 See Section II for additional information | | | | | | | | | | | | |
Noninterest expense continued to be affected by items related to the Company’s acquired-non-strategic operations, as discussed in more detail in Section II.
Excluding the items highlighted in Table II, estimated noninterest expense in the second quarter 2011 was $43.7 million as compared to $45.7 million in the first quarter 2011 and $47.7 million in the second quarter 2010. The decrease in noninterest expense of $1.9 million, or 4.3%, compared to the linked quarter was primarily driven by lower salaries and benefits, occupancy costs and FDIC assessments; offset by an increase in data processing and professional services expenses.
On a similar basis, estimated noninterest expense for the six months ended June 30, 2011 was $89.4 million as compared to $95.3 million for the six months ended June 30, 2010. The decrease of $5.9 million, or 6.2%, was primarily attributable to lower salaries and benefits, occupancy costs and FDIC assessments.
It is expected that certain wind-down costs related to acquired subsidiaries will continue through at least 2011.
INCOME TAXES
For the second quarter 2011, income tax expense was $8.9 million, resulting in an effective tax rate of 35.7%, compared with income tax expense of $9.3 million and an effective tax rate of 35.2% during the first quarter 2011 and $9.5 million and an effective tax rate of 34.8% during the comparable year-over-year period.
For the six month period ended June 30, 2011, income tax expense was $18.2 million, resulting in an effective tax rate of 35.4%, compared with income tax expense of $15.8 million and an effective tax rate of 34.9% during the six months ended June 30, 2010.
CREDIT QUALITY – EXCLUDING COVERED ASSETS
The following table presents certain credit quality metrics related to the Company’s uncovered loan portfolio as of June 30, 2011 and for the trailing four quarters.
| Table III | | | | | | | | | | | | | | | |
| | | As of or for the Three Months Ended | |
| | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | June 30, | |
| (Dollars in thousands) | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Total nonaccrual loans | | $ | 56,536 | | | $ | 62,048 | | | $ | 62,302 | | | $ | 66,157 | | | $ | 66,671 | |
| Restructured loans | | | 17,482 | | | | 18,532 | | | | 17,613 | | | | 13,365 | | | | 12,752 | |
| Total nonperforming loans | | | 74,018 | | | | 80,580 | | | | 79,915 | | | | 79,522 | | | | 79,423 | |
| Total nonperforming assets | | | 90,331 | | | | 95,533 | | | | 97,822 | | | | 97,827 | | | | 96,241 | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets as a % of: | | | | | | | | | | | | | | | | | | | | |
| Period-end loans plus OREO | | | 3.22 | % | | | 3.42 | % | | | 3.45 | % | | | 3.51 | % | | | 3.42 | % |
| Total assets | | | 1.50 | % | | | 1.51 | % | | | 1.57 | % | | | 1.59 | % | | | 1.46 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming loans as a % of total loans | | | 2.65 | % | | | 2.90 | % | | | 2.84 | % | | | 2.88 | % | | | 2.84 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Provision for loan and lease losses - uncovered | | $ | 5,756 | | | $ | 647 | | | $ | 9,741 | | | $ | 6,287 | | | $ | 6,158 | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for uncovered loan & lease losses | | $ | 53,671 | | | $ | 53,645 | | | $ | 57,235 | | | $ | 57,249 | | | $ | 57,811 | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan & lease losses as a % of: | | | | | | | | | | | | | | | | | | | | |
| Period-end loans | | | 1.92 | % | | | 1.93 | % | | | 2.03 | % | | | 2.07 | % | | | 2.07 | % |
| Nonaccrual loans | | | 94.9 | % | | | 86.5 | % | | | 91.9 | % | | | 86.5 | % | | | 86.7 | % |
| Nonperforming loans | | | 72.5 | % | | | 66.6 | % | | | 71.6 | % | | | 72.0 | % | | | 72.8 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total net charge-offs | | $ | 5,730 | | | $ | 4,237 | | | $ | 9,755 | | | $ | 6,849 | | | $ | 4,989 | |
| Annualized net-charge-offs as a % of average | | | | | | | | | | | | | | | | | | | | |
| loans & leases | | | 0.83 | % | | | 0.61 | % | | | 1.39 | % | | | 0.97 | % | | | 0.71 | % |
Net Charge-offs
Second quarter 2011 net charge-offs were $5.7 million, or 0.83% of average loans and leases, compared with $4.2 million, or 0.61%, for the linked quarter and $5.0 million, or 0.71%, for the comparable year-over-year quarter. There were no individually significant items included in net charge-offs during the second quarter 2011 and the total amount was driven primarily by activity in the commercial real estate and construction portfolios.
For the six months ended June 30, 2011, net charge-offs were $10.0 million, or 0.72% of average loans and leases, as compared to $19.0 million, or 1.36%, for the six months ended June 30, 2010.
Nonperforming Assets
Nonperforming loans totaled $74.0 million and nonperforming assets totaled $90.3 million as of June 30, 2011 compared with $80.6 million and $95.5 million, respectively, for the linked quarter and $79.4 million and $96.2 million, respectively, for the comparable year-over-year quarter. The decrease in nonperforming assets relative to the linked quarter was driven by a reduction in nonaccrual and restructured loans, offset by an increase in OREO. The declines in nonaccrual and restructured loans primarily related to the commercial real estate and construction portfolios and included the effect of net charge-off activity discussed above and other resolution strategies which more than offset additions during the quarter.
OREO increased $1.4 million during the second quarter due primarily to one commercial property and one residential property, totaling $1.6 million in the aggregate, which were offset by dispositions during the quarter.
Total classified assets as of June 30, 2011 remained flat at $184.8 million as compared to $185.7 million for the linked quarter. Classified assets are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse.
Delinquent Loans
Loans 30-to-89 days past due totaled $26.8 million, or 0.96% of period end loans, as of June 30, 2011. This compares to $20.4 million, or 0.73%, as of March 31, 2011 and $21.8 million, or 0.78%, as of June 30, 2010. The increase compared to the linked quarter resulted from increased delinquencies in the commercial and commercial real estate portfolios, offset by an improvement in residential real estate delinquencies.
Provision for Loan & Lease Losses
Second quarter 2011 provision expense related to uncovered loans and leases was $5.8 million as compared to $647,000 during the linked quarter and $6.2 million during the comparable year-over-year quarter. As a percentage of net charge-offs, second quarter 2011 provision expense equaled 100.5%.
Allowance for Loan & Lease Losses
As of the end of the second quarter 2011, the allowance for uncovered loan and lease losses was $53.7 million as compared to $53.6 million as of March 31, 2011 and $57.8 million as of June 30, 2010. As a percentage of period-end loans, the allowance for loan and lease losses was 1.92% as of June 30, 2011 as compared to 1.93% as of March 31, 2011 and 2.07% as of June 30, 2010. The allowance for loan and lease losses as of June 30, 2011 reflects management’s estimate of credit risk inherent in the Company’s uncovered loan portfolio at that time.
LOANS (EXCLUDING COVERED LOANS)
The following table presents the loan portfolio, not including covered loans, as of June 30, 2011, March 31, 2011 and June 30, 2010.
| Table IV | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | June 30, 2011 | | | March 31, 2011 | | | June 30, 2010 | |
| | | | | | Percent | | | | | | Percent | | | | | | Percent | |
| (Dollars in thousands) | | Balance | | | of Total | | | Balance | | | of Total | | | Balance | | | of Total | |
| | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 798,552 | | | | 28.6 | % | | $ | 794,821 | | | | 28.6 | % | | $ | 749,522 | | | | 26.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate - construction | | | 142,682 | | | | 5.1 | % | | | 145,355 | | | | 5.2 | % | | | 197,112 | | | | 7.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate - commercial | | | 1,144,368 | | | | 41.0 | % | | | 1,131,306 | | | | 40.7 | % | | | 1,113,836 | | | | 39.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate - residential | | | 256,788 | | | | 9.2 | % | | | 268,746 | | | | 9.7 | % | | | 296,295 | | | | 10.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Installment | | | 63,799 | | | | 2.3 | % | | | 66,028 | | | | 2.4 | % | | | 75,862 | | | | 2.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Home equity | | | 344,457 | | | | 12.3 | % | | | 339,590 | | | | 12.2 | % | | | 332,928 | | | | 11.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Credit card | | | 28,618 | | | | 1.0 | % | | | 28,104 | | | | 1.0 | % | | | 28,567 | | | | 1.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Lease financing | | | 9,890 | | | | 0.4 | % | | | 7,147 | | | | 0.3 | % | | | 15 | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 2,789,154 | | | | 100.0 | % | | $ | 2,781,097 | | | | 100.0 | % | | $ | 2,794,137 | | | | 100.0 | % |
Loans, excluding covered loans, totaled $2.8 billion at the end of the second quarter, remaining consistent with the balances as of March 31, 2011 and June 30, 2010. While total balances have remained flat over the past year, the composition of the portfolio has changed modestly as the average balances of commercial and commercial real estate loans have increased while construction and residential mortgage loans have declined.
INVESTMENTS
The following table presents a summary of the total investment portfolio at June 30, 2011.
| Table V | | | | | | | | | | | | | | | | | | |
| | | As of June 30, 2011 | |
| | | Book | | | Percent of | | | Book | | | Cost | | | Market | | | Gain/ | |
| (Dollars in thousands) | | Value | | | Total | | | Yield | | | Basis | | | Value | | | (Loss) | |
| | | | | | | | | | | | | | | | | | | |
| Agencies | | $ | 5,176 | | | | 0.4 | % | | | 5.49 | | | | 100.00 | | | | 102.97 | | | $ | 149 | |
| CMOs (agency) | | | 645,062 | | | | 53.4 | % | | | 2.02 | | | | 101.23 | | | | 101.94 | | | | 4,460 | |
| CMOs (private) | | | 37 | | | | 0.0 | % | | | 0.91 | | | | 100.00 | | | | 100.21 | | | | - | |
| MBSs (agency) | | | 461,001 | | | | 38.1 | % | | | 3.48 | | | | 102.29 | | | | 105.52 | | | | 14,077 | |
| | | | 1,111,276 | | | | 91.9 | % | | | 2.64 | | | | 101.67 | | | | 103.40 | | | | 18,686 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Municipal | | | 15,206 | | | | 1.3 | % | | | 7.21 | | | | 99.46 | | | | 101.72 | | | | 344 | |
Other 1 | | | 82,125 | | | | 6.8 | % | | | 3.50 | | | | 102.89 | | | | 103.44 | | | | 440 | |
| | | | 97,331 | | | | 8.1 | % | | | 4.08 | | | | 102.35 | | | | 103.16 | | | | 784 | |
| Total investment portfolio | | $ | 1,208,607 | | | | 100.0 | % | | | 2.76 | | | | 101.72 | | | | 103.38 | | | $ | 19,470 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Net Unrealized Gain/(Loss) | | | | | | | | | | $ | 19,470 | |
| | | | | | | Aggregate Gains | | | | | | | | | | | | 20,299 | |
| | | | | | | Aggregate Losses | | | | | | | | | | | | (829 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Net Unrealized Gain/(Loss) % of Book Value | | | | | | | | 1.61 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
1 Other includes $71.5 million of regulatory stock | | | | | | | | | | | | | | | | | | | | | |
The increase in the investment portfolio as compared to the linked quarter was due to the purchase of $249.8 million of agency mortgage backed securities during the quarter, net of maturities, amortizations and investments called prior to maturity. The growth in the investment portfolio relative to both the linked and year-over-year quarters is primarily due to the investment of liquidity resulting from continued muted loan demand and deposit inflows. The addition of short and long-term securities was executed in conjunction with the Company’s overall asset/liability structure and interest rate risk modeling activities, and, to a lesser extent, market and rate expectations. As in past quarters, First Financial has avoided adding to its portfolio any particular securities that would materially increase credit risk or geographic concentration risk. The Company does, however, include these risks in its total evaluation of current market opportunities that would enhance the overall performance of the portfolio.
DEPOSITS
The following table presents a roll-forward of deposit activity during the second quarter 2011, including activity related to deposits acquired through the FDIC-assisted transactions.
| Table VI | | | | | | | | | | | | |
| | | Deposit Activity - Second Quarter 2011 | |
| | | Balance as of | | | | | | Acquired- | | | Balance as of | |
| | | March 31, | | | Strategic | | | Non-Strategic | | | June 30, | |
| (Dollars in thousands) | | 2011 | | | Portfolio | | | Portfolio | | | 2011 | |
| | | | | | | | | | | | | |
| Transaction and savings accounts | | $ | 3,514,956 | | | | (77,249 | ) | | | (44,900 | ) | | $ | 3,392,807 | |
| | | | | | | | | | | | | | | | | |
| Time deposits | | | 1,590,008 | | | | (50,846 | ) | | | (12,431 | ) | | | 1,526,731 | |
| | | | | | | | | | | | | | | | | |
| Brokered deposits | | | 112,286 | | | | (1,788 | ) | | | (55,626 | ) | | | 54,872 | |
| Total deposits | | $ | 5,217,250 | | | $ | (129,883 | ) | | $ | (112,957 | ) | | $ | 4,974,410 | |
Average strategic transaction and savings accounts increased $169.8 million, or 5.0%, during the second quarter 2011, driven by growth in retail money market accounts and public funds. However, the balance of strategic transaction and savings accounts as of June 30, 2011 declined $77.3 million compared to the balance as of March 31, 2011, due primarily to a seasonal decrease of $74.0 million in public funds transaction accounts. The planned and expected decrease in acquired-non-strategic transaction and savings accounts was primarily driven by activity in the exited markets of Michigan and Louisville. As in prior quarters, acquired-non-strategic time deposit and brokered deposit balances continued to decline.
CAPITAL MANAGEMENT
The following table presents First Financial’s regulatory and other capital ratios as of June 30, 2011, March 31, 2011 and June 30, 2010.
| Table VII | | | | | | | | | | | | |
| | | As of | | | | |
| | | June 30, | | | March 31, | | | June 30, | | | "Well-Capitalized" | |
| | | 2011 | | | 2011 | | | 2010 | | | Minimum | |
| | | | | | | | | | | | | |
| Leverage Ratio | | | 11.01 | % | | | 11.08 | % | | | 9.99 | % | | | 5.00 | % |
| | | | | | | | | | | | | | | | | |
| Tier 1 Capital Ratio | | | 20.15 | % | | | 20.49 | % | | | 18.15 | % | | | 6.00 | % |
| | | | | | | | | | | | | | | | | |
| Total Risk-Based Capital Ratio | | | 21.43 | % | | | 21.77 | % | | | 19.42 | % | | | 10.00 | % |
| | | | | | | | | | | | | | | | | |
| Ending tangible shareholders' equity | | | | | | | | | | | | | | | | |
| to ending tangible assets | | | 11.11 | % | | | 10.40 | % | | | 9.55 | % | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Ending tangible common shareholders' | | | | | | | | | | | | | | | | |
| equity to ending tangible assets | | | 11.11 | % | | | 10.40 | % | | | 9.55 | % | | | N/A | |
On June 30, 2011, First Financial (OH) Statutory Trust II, a wholly-owned subsidiary of the Company, completed the early redemption of $20.0 million of floating rate trust preferred securities. This amount represented the entire balance of securities outstanding under this subsidiary which had a cost of funds of 3.41% as of the redemption date.
Regulatory capital ratios decreased modestly during the second quarter 2011 as a result of the trust preferred redemption, offset partially by the Company’s strong earnings performance which contributed to the growth in tangible shareholders’ equity. As of June 30, 2011, tangible book value per common share was $11.42 compared to $11.17 as of March 31, 2011 and $10.73 as of June 30, 2010. Regulatory capital ratios as of June 30, 2011 are considered preliminary pending the filing of the Company’s regulatory reports.
SECTION II – SUPPLEMENTAL INFORMATION ON COVERED ASSETS AND ACQUISITION-RELATED ITEMS
To assist in analyzing the effect of the Company’s 2009 FDIC assisted transactions on the financial results, supplemental information that segregates the estimated impact on pre-tax earnings of certain acquisition-related items and provides additional detail on the covered loan portfolio follows.
SUMMARY OF SIGNIFICANT ACQUISITION-RELATED ITEMS
The following table illustrates the estimated effect of certain acquisition-related items on the results of operations for the three months ended June 30, 2011, March 31, 2011 and June 30, 2010.
| Table VIII | | | | | | | | | |
| | | For the Three Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | |
| (Dollars in thousands) | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | |
| Income effect: | | | | | | | | | |
Accelerated discount on covered loans 1, 2 | | $ | 4,756 | | | $ | 5,783 | | | $ | 7,408 | |
| Acquired-non-strategic net interest income | | | 8,821 | | | | 8,902 | | | | 10,207 | |
| FDIC loss sharing income | | | 21,643 | | | | 23,435 | | | | 15,170 | |
| Service charges on deposit accounts related to | | | | | | | | | | | | |
| acquired-non-strategic operations | | | 108 | | | | 152 | | | | 130 | |
| Other (loss) income related to acquired-non-strategic operations | | | (593 | ) | | | (704 | ) | | | 346 | |
| Income related to the accelerated discount on covered | | | | | | | | | | | | |
| loans and acquired-non-strategic operations | | | 34,735 | | | | 37,568 | | | | 33,261 | |
| | | | | | | | | | | | | |
| Expense effect: | | | | | | | | | | | | |
| Provision for loan and lease losses - covered | | | 23,895 | | | | 26,016 | | | | 18,962 | |
Acquired-non-strategic operating expenses: 3 | | | | | | | | | | | | |
| Salaries and employee benefits | | | 499 | | | | 1,497 | | | | 29 | |
| Occupancy | | | 64 | | | | 2,153 | | | | 542 | |
| Other | | | 2,110 | | | | 261 | | | | 699 | |
| Total acquired-non-strategic operating expenses | | | 2,673 | | | | 3,911 | | | | 1,270 | |
| | | | | | | | | | | | | |
FDIC loss share support 3 | | | 1,369 | | | | 783 | | | | 938 | |
| | | | | | | | | | | | | |
| Loss share and covered asset expense | | | 3,376 | | | | 3,171 | | | | - | |
| | | | | | | | | | | | | |
Acquisition-related costs: 3 | | | | | | | | | | | | |
| Integration-related costs | | | 76 | | | | 46 | | | | 720 | |
| Professional services fees | | | - | | | | 55 | | | | 1,436 | |
| Other | | | - | | | | 15 | | | | 24 | |
| Total acquisition-related costs | | | 76 | | | | 116 | | | | 2,180 | |
| | | | | | | | | | | | | |
Transition-related items: 3 | | | | | | | | | | | | |
| Salaries and benefits | | | 81 | | | | 166 | | | | 1,843 | |
| Occupancy | | | - | | | | - | | | | (522 | ) |
| Other | | | 80 | | | | 30 | | | | - | |
| Total transition-related items | | | 161 | | | | 196 | | | | 1,321 | |
| | | | | | | | | | | | | |
| Total expense effect | | | 31,550 | | | | 34,193 | | | | 24,671 | |
| | | | | | | | | | | | | |
| Total estimated effect on pre-tax earnings | | $ | 3,185 | | | $ | 3,375 | | | $ | 8,590 | |
| | | | | | | | | | | | | |
1 Included in noninterest income | | | | | | | | | | | | |
2 Net of the corresponding valuation adjustment on the FDIC indemnification asset | | | | | | | | | | | | |
3 Included in noninterest expense | | | | | | | | | | | | |
ACCELERATED DISCOUNT ON LOAN PREPAYMENTS AND DISPOSITIONS
During the second quarter 2011, First Financial recognized approximately $4.8 million in accelerated discount from acquired loans. Accelerated discount is recognized when acquired loans, which are recorded on the Company’s balance sheet at an amount less than the unpaid principal balance, prepay at an amount greater than their recorded book value. Prepayments can occur either through customer driven payments before the maturity date or loan sales. The amount of discount attributable to the credit loss component of each loan varies and the recognized amount is offset by a related reduction in the FDIC indemnification asset. Accelerated discount recognized during the quarter resulted primarily from loan prepayments.
OPERATING EXPENSES AND OTHER ACQUISITION-RELATED COSTS
Acquired-non-strategic operating expenses declined as costs associated with the exited markets of Michigan and Louisville, KY decreased significantly. During the quarter, however, the Company did incur professional services and other resolution expenses related to non-strategic acquired subsidiaries, which resulted in the increase in other acquired-non-strategic operating expenses. Expenses related to transition-related items and acquisition-related costs continued to decline as planned.
NET INTEREST MARGIN IMPACT
Net interest margin is affected by certain activity related to the acquired loan portfolio. The majority of these loans are accounted for under ASC Topic 310-30 and, as such, the Company is required to periodically update its forecast of expected cash flows from these loans. Impairment, as a result of a decrease in expected cash flows, is recognized as provision expense in the period it is measured and has no impact on net interest margin. Improvements in expected cash flows are recognized on a prospective basis through an upward adjustment to the yield earned on the portfolio. Impairment and improvement are both partially offset by the impact of changes in the value of the FDIC indemnification asset. Impairment is partially offset by an increase to the FDIC indemnification asset as a result of FDIC loss sharing income and has no impact on net interest margin. Improvement, which is reflected as a higher yield, is partially offset by a lower yield earned on the FDIC indemnification asset until the next periodic valuation of the loans and the indemnification asset. The weighted average yield of the acquired loan portfolio may also be subject to change as loans with higher yields pay down more quickly or slowly than loans with lower yields.
The following table shows the estimated yield earned by the Company on its legacy and originated loan portfolio, acquired loan portfolio and the FDIC indemnification asset for the three months ended June 30, 2011.
| Table IX | | For the Three Months Ended | |
| | | June 30, 2011 | |
| | | Average | | | | |
| | | Balance | | | Yield | |
| | | | | | | |
| Legacy and originated loan portfolio | | $ | 2,782,947 | | | | 5.23 | % |
| | | | | | | | | |
Acquired loan portfolio accounted for under ASC Topic 310-30 1 | | | 1,184,505 | | | | 10.78 | % |
| | | | | | | | | |
Acquired loan portfolio accounted for under FAS 91 2 | | | 110,723 | | | | 13.67 | % |
| | | | | | | | | |
FDIC indemnification asset 1 | | | 186,125 | | | | -3.68 | % |
| | | | | | | | | |
| Total | | $ | 4,264,300 | | | | 6.60 | % |
| | | | | | | | | |
1 Future yield adjustments subject to change based on required, periodic valuation procedures | |
2 Includes loans with revolving privileges which are scoped out of ASC Topic 310-30 and certain loans which the Company elected to treat under the cost recovery method of accounting. | |
As part of its on-going valuation procedures, the Company experienced a $0.8 million net improvement in the cash flow expectations related to certain loan pools during the second quarter 2011. During the quarter, the average yield earned on covered loans was 10.78%. On a prospective basis and until its next periodic valuation, the Company expects the yield on covered loans to be 11.51%.
This projected improvement in cash flow expectations on loans is partially offset by a related decline in cash flow expectations on the FDIC indemnification asset which is recognized through its yield. The average yield earned on the indemnification asset during the second quarter 2011 was -3.68%. On a prospective basis and until its next periodic valuation, the Company expects the yield on the indemnification asset to be -3.74%.
COVERED ASSETS & LOSS SHARE AGREEMENTS
As of June 30, 2011, 30.8% of the Company’s total loans were covered loans. As required under the loss-share arrangements, First Financial must file monthly certifications with the FDIC on single-family residential loans and quarterly certifications on all other loans. To date, all certifications have been filed in a timely manner and without significant issues.
When losses are incurred on covered assets that exceed expectations, the Company recognizes the gross credit losses in excess of the valuation mark as either provision expense if related to loans or noninterest expense if related to OREO. Reimbursements due from the FDIC under loss share agreements related to these credit losses are recorded as noninterest income. As such, the net impact on earnings is the difference between the gross credit losses and FDIC reimbursements, representing the Company’s proportionate share of the credit losses realized on covered assets.
COVERED LOAN PORTFOLIO
The following table presents estimated activity in the covered loan portfolio by loan type during the second quarter 2011.
| Table X | | | | | | | | | | | | | | | | | | | | | |
| | | Covered Loan Activity - Second Quarter 2011 | |
| | | | | | Reduction in Recorded Investment Due to: | | | | |
| | | March 31, | | | | | | Prepayments / | | | Contractual | | | Net | | | Loans With | | | June 30, | |
| (Dollars in thousands) | | 2011 | | | Sales | | | Renewals | | | Activity 1 | | | Charge-Offs 2 | | | Coverage Removed | | | 2011 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 294,300 | | | $ | 6,928 | | | $ | 27,874 | | | $ | 7,360 | | | $ | 385 | | | $ | - | | | $ | 251,753 | |
| Real estate - construction | | | 44,789 | | | | - | | | | 2,437 | | | | (445 | ) | | | 1,986 | | | | - | | | | 40,811 | |
| Real estate - commercial | | | 762,188 | | | | - | | | | 23,389 | | | | 9,999 | | | | 696 | | | | 1,219 | | | | 726,885 | |
| Real estate - residential | | | 140,256 | | | | - | | | | 4,707 | | | | 1,197 | | | | 221 | | | | - | | | | 134,131 | |
| Installment | | | 18,008 | | | | - | | | | 2,169 | | | | 344 | | | | 298 | | | | - | | | | 15,197 | |
| Home equity | | | 70,429 | | | | - | | | | 3,371 | | | | (2,426 | ) | | | 820 | | | | - | | | | 68,664 | |
| Other covered loans | | | 6,045 | | | | - | | | | - | | | | 756 | | | | - | | | | - | | | | 5,289 | |
| Total covered loans | | $ | 1,336,015 | | | $ | 6,928 | | | $ | 63,947 | | | $ | 16,785 | | | $ | 4,406 | | | $ | 1,219 | | | $ | 1,242,730 | |
1 Includes partial paydowns, accretion of the valuation discount and advances on revolving loans | |
2 Indemnified at 80% from the FDIC | |
During the second quarter 2011, the total balance of covered loans decreased $93.3 million, or 7.0%, as compared to the previous quarter. Loans with coverage removed represent loans to primarily high quality borrowers involving a change in loan terms which caused the respective loans to no longer qualify for reimbursement from the FDIC in the event of credit losses.
ALLOWANCE FOR LOAN LOSSES
Under the applicable accounting guidance, the allowance for loan losses related to covered loans is a result of impairment identified in on-going valuation procedures and is generally recognized in the current period as provision expense. However, if improvement is noted in a loan pool that had previously experienced impairment, the amount of improvement is recognized as a reduction to the applicable period’s provision expense. Additional improvement beyond previously recorded impairment is reflected as a yield adjustment on a prospective basis. The timing inherent in this accounting treatment may result in earnings volatility in future periods.
The Company has established an allowance for loan losses associated with covered loans based on estimated valuation procedures performed each quarter. During the second quarter 2011, the Company recognized a provision expense of $23.9 million related to net impairment and net charge-offs associated with covered loans, resulting in an allowance for covered loans of $51.0 million as of June 30, 2011. Loss share and covered asset expenses of $3.4 million consist primarily of losses related to covered OREO. The related receivable due from the FDIC under loss share agreements related to these loans and OREO of $21.6 million was recognized as FDIC loss share income and a corresponding increase to the FDIC indemnification asset.
SUMMARY OF ACQUISITIONS
During the third quarter 2009, through FDIC-assisted transactions, First Financial assumed the banking operations of Peoples Community Bank (“Peoples”), Irwin Union Bank and Trust Company and Irwin Union Bank, F.S.B. (collectively, “Irwin”). In connection with the FDIC-assisted transactions, the Company has loss sharing arrangements with the FDIC. Under the terms of these agreements, the FDIC will reimburse the Company for losses with respect to certain loans (“covered loans”) and other real estate owned (“OREO”) (collectively, “covered assets”).
As a result of the acquisitions, the Company’s business and operating markets expanded significantly. To assist readers in understanding the financial and strategic impact of the acquisitions, the combined operations of First Financial’s legacy and acquired businesses will be discussed in three categories: “Legacy-Strategic”, “Acquired-Strategic” and “Acquired-Non-Strategic”. Definitions of the business categories and other financial items related to the acquisitions can be found below in “Glossary of Terms”. Available on the Company’s website at www.bankatfirst.com is a presentation providing supplemental information regarding its quarterly results.
Glossary of Terms
To assist readers in understanding the Company’s financial results and the effect of the acquisitions on reported amounts, the following terms are used throughout this release to refer to specific acquisition-related items. The first three define the business components referred to above and the remaining items define specific covered loan terminology.
Legacy-strategic – Elements of the business that existed prior to the acquisitions and will continue to be supported.
Acquired-strategic – Elements of the business that the Company intends to retain and will continue to support and build. Legacy-strategic and acquired-strategic are collectively referred to as “strategic.”
Acquired-non-strategic – Elements of the business that the Company intends to exit but will continue to support to obtain maximum economic value. No growth or replacement is expected.
Accelerated discount on covered loans – The acceleration of the unrealized valuation discount. This item will be ongoing but diminishing as covered loan balances decline over time.
UPB – Unpaid principal balance
Carrying value – The unpaid principal balance of a covered loan less any valuation discount.
Unless otherwise noted, all amounts discussed in this 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. In some instances, financial data may not add up due to rounding.
Teleconference / Webcast Information
First Financial’s senior management will host a conference call to discuss the Company’s financial and operating results on Friday, July 29, 2011 at 9:00 a.m. Members of the public who would like to listen to the conference call should dial (877) 317-6789 (U.S. toll free), (866) 605-3852 (Canada toll free) or +1 (412) 317-6789 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call through August 15, 2011 at (877) 344-7529 (U.S. toll free) and +1 (412) 317-0088 (International); conference number 10002570. The webcast will be archived on the Investor Relations section of the Company’s website through July 29, 2012.
Press Release and Additional Information on Website
This press release as well as supplemental information related to this release is available to the public through the Investor Relations section of First Financial’s website at www.bankatfirst.com/investor.
Forward-Looking Statements
Certain statements contained in this news release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the ‘‘Act’’). In addition, certain statements in future filings by First Financial with the SEC, in press releases, and in oral and written statements made by or with the approval of First Financial which are not statements of historical fact constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to, projections of revenues, income or loss, earnings or loss per share, the payment or non-payment of dividends, capital structure and other financial items, statements of plans and objectives of First Financial or its management or board of directors, and statements of future economic performances and statements of assumptions underlying such statements. Words such as ‘‘believes’’, ‘‘anticipates’’, “likely”, “expected”, ‘‘intends’’, and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Management’s analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks 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 we conduct operations may continue to deteriorate resulting in, among other things, a further deterioration in credit quality or a reduced demand for credit, including the resultant effect on our loan portfolio, allowance for loan and lease losses and overall financial performance; |
| | § | the effects of the potential delay or failure of the U.S. federal government to pay its debts as they become due or make payments in the ordinary course; |
| | § | the ability of financial institutions to access sources of liquidity at a reasonable cost; |
| | § | the impact of recent upheaval in the financial markets and the effectiveness of domestic and international governmental actions taken in response, such as the U.S. Treasury’s TARP and the FDIC’s Temporary Liquidity Guarantee Program, and the effect of such governmental actions on us, our competitors and counterparties, financial markets generally and availability of credit specifically, and the U.S. and international economies, including potentially higher FDIC premiums arising from increased payments from FDIC insurance funds as a result of depository institution failures; |
| | § | the effect of and changes in policies and laws or regulatory agencies (notably the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act); |
| | § | inflation and possible changes in interest rates; |
| | § | our ability to keep up with technological changes; |
| | § | our ability to comply with the terms of loss sharing agreements with the FDIC; |
| | § | mergers and acquisitions, including costs or difficulties related to the integration of acquired companies and the wind-down of non-strategic operations that may be greater than expected, such as the risks and uncertainties associated with the Irwin Mortgage Corporation bankruptcy proceedings; |
| | § | the risk that exploring merger and acquisition opportunities may detract from management’s time and ability to successfully manage our company; |
| | § | expected cost savings in connection with the consolidation of recent acquisitions may not be fully realized or realized within the expected time frames, and deposit attrition, customer loss and revenue loss following completed acquisitions may be greater than expected; |
| | § | our ability to increase market share and control expenses; |
| | § | the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as the Financial Accounting Standards Board and the SEC; |
| | § | adverse changes in the securities and debt markets; |
| | § | our success in recruiting and retaining the necessary personnel to support business growth and expansion and maintain sufficient expertise to support increasingly complex products and services; |
| | § | monetary and fiscal policies of the Board of Governors of the Federal Reserve System (Federal Reserve) and the U.S. government and other governmental initiatives affecting the financial services industry; |
| | § | our ability to manage loan delinquency and charge-off rates and changes in estimation of the adequacy of the allowance for loan losses; and |
| | § | the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. |
In addition, please refer to our Annual Report on Form 10-K for the year ended December 31, 2010, as well as our other filings with the SEC, for a more detailed discussion of these risks and uncertainties and other factors. Such forward-looking statements are meaningful only on the date when such statements are made, and First Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such a statement is made to reflect the occurrence of unanticipated events.
About First Financial Bancorp
First Financial Bancorp is a Cincinnati, Ohio based bank holding company. As of June 30, 2011, the Company had $6.0 billion in assets, $4.0 billion in loans, $5.0 billion in deposits and $722 million in shareholders’ equity. The Company’s subsidiary, First Financial Bank, N.A., founded in 1863, provides banking and financial services products through its three lines of business: commercial, retail and wealth management. The commercial and retail units provide traditional banking services to business and consumer clients. First Financial Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.4 billion in assets under management as of June 30, 2011. The Company’s strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 102 banking centers. Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.
Contact Information
| Investors/Analysts | Media |
| Kenneth Lovik | Cheryl Lipp |
| Vice President, Investor Relations and | First Vice President, Director of Communications |
| Corporate Development | (513) 979-5797 |
| (513) 979-5837 | cheryl.lipp@bankatfirst.com |
| kenneth.lovik@bankatfirst.com | |
Selected Financial Information
June 30, 2011
(unaudited)
| Contents | Page |
| | |
| Consolidated Financial Highlights | 2 |
| | |
| Consolidated Statements of Income | 3 |
| | |
| Consolidated Quarterly Statements of Income | 4 – 5 |
| | |
| Consolidated Statements of Condition | 6 |
| | |
| Average Consolidated Statements of Condition | 7 |
| | |
| Net Interest Margin Rate / Volume Analysis | 8 – 9 |
| | |
| Credit Quality | 10 |
| | |
| Capital Adequacy | 11 |
FIRST FINANCIAL BANCORP.
FIRST FINANCIAL BANCORP.
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
N/M = Not meaningful.
FIRST FINANCIAL BANCORP.
FIRST FINANCIAL BANCORP.
FIRST FINANCIAL BANCORP.
FIRST FINANCIAL BANCORP.
FIRST FINANCIAL BANCORP.
