Unassociated Document
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):       August 3, 2010

FIRST FINANCIAL BANCORP.
(Exact name of registrant as specified in its charter)

Ohio
  
0-12379
  
31-1042001
(State or other jurisdiction
  
(Commission File
  
(IRS Employer
of incorporation)
  
Number)
  
Identification No.)
         
201 East Fourth Street, Suite 1900
        
Cincinnati, Ohio
      
45202
(Address of principal executive
offices)
      
(Zip Code)

Registrant’s telephone number, including area code:  (513) 979-5837

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 

Form 8-K
First Financial Bancorp.

Item 2.02       Results of Operations and Financial Condition.

On August 3, 2010, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the second quarter of 2010.  A copy of the earnings press release is attached as Exhibit 99.1.

The earnings press release includes some non-GAAP financial measures.  The first non-GAAP financial measure, Net interest margin (fully tax equivalent), appears in the table entitled “Consolidated Financial Highlights” under the section “Key Financial Ratios.”  It also appears in the two tables entitled “Consolidated Quarterly Statements of Income”, as well as the “Consolidated Statements of Income” under “Additional Data”.  The second non-GAAP measure appears in the tables entitled “Additional Data” at the bottom of the two “Consolidated Quarterly Statements of Income” pages and the “Consolidated Statements of Income” page.  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.

Below is a table showing “net interest income” calculated and presented in accordance with GAAP and the adjustments made to arrive at the non-GAAP financial measure “net interest income – tax equivalent.”  The table also shows “net interest margin” calculated and presented in accordance with GAAP and the method used to arrive at the non-GAAP financial measure “net interest margin (fully tax equivalent).”

   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sep. 30,
    
June 30,
    
June 30,
  
   
2010
    
2010
    
2009
    
2009
    
2009
    
2010
    
2009
  
   
(Dollars in thousands)
  
Net interest income
   $ 67,738     $ 72,020     $ 73,182     $ 40,664     $ 31,209     $ 139,758     $ 62,137  
Tax equivalent adjustment
     212       212       295       300       307       424       670  
Net interest income - tax equivalent
   $ 67,950     $ 72,232     $ 73,477     $ 40,964     $ 31,516     $ 140,182     $ 62,807  
                                                         
Average earning assets
     6,024,202       5,994,747       6,265,232       4,137,966       3,483,796       6,009,556       3,483,223  
                                                         
Net interest margin*
     4.51 %     4.87 %     4.63 %     3.90 %     3.59 %     4.69 %     3.60 %
Net interest margin (fully tax equivalent)*
     4.52 %     4.89 %     4.65 %     3.93 %     3.63 %     4.70 %     3.64 %

*  Margins are calculated using net interest income annualized divided by average earning assets.

The earnings press release also includes some non-GAAP ratios in the “Consolidated Financial Highlights” page.  These ratios are:  (1) Return on average tangible common shareholders' equity; (2) Ending tangible common equity as a percent of ending tangible assets; (3) Ending tangible common equity as a percent of risk-weighted assets; (4) Average tangible common equity as a percent of average tangible assets; and (5) Tangible book value per common share.  The Ending tangible common equity as a percent of ending tangible assets and Average tangible common equity as a percent of average tangible assets are also shown in the “Regulatory Capital” section of the “Capital Adequacy” page in the earnings release.  The following table provides a reconciliation of these ratios to GAAP.  The company considers these critical metrics with which to analyze banks.  The ratios have been included in the earnings press release to facilitate a better understanding of the company’s capital structure and financial condition.
 
 
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sep. 30,
    
June 30,
    
June 30,
  
   
2010
    
2010
    
2009
    
2009
    
2009
    
2010
    
2009
  
   
(Dollars in thousands, except per share data)
  
Net income available to common shareholders (a)
   $ 17,774     $ 9,733     $ 12,795     $ 224,566     $ 450     $ 27,507     $ 5,607  
                                                         
Average total shareholders' equity
   $ 696,260     $ 704,776     $ 679,840     $ 480,839     $ 379,944     $ 700,495     $ 365,480  
Less:
                                                        
Average Preferred stock
     0       (47,521 )     (78,573 )     (78,221 )     (78,126 )     (23,629 )     (78,082 )
Goodwill
     (51,908 )     (51,908 )     (51,908 )     (51,908 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (465 )     (6,614 )     (465 )
Average tangible common equity (b)
     637,738       598,289       541,898       342,616       273,092       618,344       258,672  
Add back: Average preferred stock
     0       47,521       78,573       78,221       78,126       23,629       78,082  
Average tangible shareholders' equity (c)
     637,738       645,810       620,471       420,837       351,218       641,973       336,754  
                                                         
Total shareholders' equity
     706,765       692,968       675,167       670,626       446,636       706,765       446,636  
Less:
                                                        
Preferred stock
     0       0       (79,195 )     (78,271 )     (78,173 )     0       (78,173 )
Goodwill
     (51,908 )     (51,908 )     (51,908 )     (51,908 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (465 )     (6,614 )     (465 )
Tangible common equity (d)
     648,243       634,002       536,603       532,353       339,737       648,243       339,737  
Add back: Preferred stock
     0       0       79,195       78,271       78,173       0       78,173  
Tangible shareholders' equity (e)
     648,243       634,002       615,798       610,624       417,910       648,243       417,910  
                                                         
Total assets
     6,607,165       6,572,426       6,681,123       7,257,706       3,783,353       6,607,165       3,783,353  
Less:
                                                        
Goodwill
     (51,908 )     (51,908 )     (51,908 )     (51,908 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (465 )     (6,614 )     (465 )
Ending tangible assets (f)
     6,548,643       6,513,460       6,621,754       7,197,704       3,754,627       6,548,643       3,754,627  
                                                         
Risk-weighted assets (g)
     3,646,608       3,732,909       3,908,105       4,015,018       3,076,042       3,646,608       3,076,042  
                                                         
Total average assets
     6,644,551       6,671,071       6,863,923       4,508,809       3,784,458       6,657,738       3,781,002  
Less:
                                                        
Goodwill
     (51,908 )     (51,908 )     (51,908 )     (51,908 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (465 )     (6,614 )     (465 )
Average tangible assets (h)
     6,586,029       6,612,105       6,804,554       4,448,807       3,755,732       6,599,216       3,752,276  
                                                         
Ending common shares outstanding (i)
     58,062,655       57,833,969       51,433,821       51,431,422       51,434,346       58,062,655       51,434,346  
                                                         
Ratios
                                                        
Return on average tangible common shareholders' equity (a)/(b)
     11.18 %     6.60 %     9.37 %     260.04 %     0.66 %     8.97 %     4.37 %
Ending tangible common equity as a percent of:
                                                        
Ending tangible assets (d)/(f)
     9.90 %     9.73 %     8.10 %     7.40 %     9.06 %     9.90 %     9.06 %
Risk-weighted assets (d)/(g)
     17.78 %     16.98 %     13.73 %     13.26 %     11.04 %     17.78 %     11.04 %
Average tangible common equity as a percent of average tangible assets (b)/(h)
     9.68 %     9.05 %     7.96 %     7.70 %     7.27 %     9.37 %     6.89 %
Tangible book value per common share (d)/(i)
   $ 11.16     $ 10.96     $ 10.43     $ 10.35     $ 6.61     $ 11.16     $ 6.61  
Ending tangible shareholders' equity to ending tangible assets (e)/(f)
     9.90 %     9.73 %     9.30 %     8.48 %     11.14 %     9.90 %     11.14 %
Average tangible shareholders' equity to average tangible assets (c)/(h)
     9.68 %     9.77 %     9.12 %     9.46 %     9.35 %     9.73 %     8.97 %

First Financial Bancorp also provided electronic presentation slides on its web site used in connection with the earnings conference call. A copy of the electronic presentation slides is included in this Report as Exhibit 99.2.

First Financial Bancorp. does not intend for this Item 2.02 or Exhibits 99.1 or 99.2 to be treated as “filed” for purposes of the Securities Exchange Act of 1934, as amended, or incorporated by reference into its filings under the Securities Act of 1933, as amended.

 
 
 

Item 9.01
Exhibits.

(d)
Exhibits:

The following exhibits shall not be deemed to be “filed” for purposes of the Securities Act.

99.1
First Financial Bancorp. Press Release dated August 3, 2010 – Furnished.
99.2
First Financial Bancorp. August 4, 2010 Earnings Call slides – Furnished.
 
 
 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FIRST FINANCIAL BANCORP.
   
By:
/s/ J. Franklin Hall
 
J. Franklin Hall
 
Executive Vice President and
 
Chief Financial Officer

Date:  August 4, 2010

 
 
 

Form 8-K
First Financial Bancorp.

Exhibit Index

Exhibit No.
  
Description