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):  January 26, 2010


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


 
Ohio
(State or other jurisdiction
of incorporation)
0-12379
(Commission File Number)
31-1042001
(IRS Employer
Identification No.)
 
4000 Smith Road
Cincinnati, Ohio
(Address of principal executive offices)
  
 
45209
(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):

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

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

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

r
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 January 26, 2010, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the full year and fourth quarter of 2009.  A copy of the earnings press release is attached as Exhibit 99.1, with the financial information attached as Exhibit 99.2.

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
    
Twelve Months Ended
  
   
Dec. 31,
    
Sep. 30,
    
June 30,
    
Mar. 31,
    
Dec. 31,
    
Dec. 31,
  
   
2009
    
2009
    
2009
    
2009
    
2008
    
2009
    
2008
  
               
(Dollars in thousands)
              
Net interest income
   $ 73,182     $ 40,664     $ 31,209     $ 30,928     $ 30,129     $ 175,983     $ 116,202  
Tax equivalent adjustment
     295       300       307       363       360       1,265       1,808  
   Net interest income - tax equivalent
   $ 73,477     $ 40,964     $ 31,516     $ 31,291     $ 30,489     $ 177,248     $ 118,010  
                                                         
Average earning assets
     6,265,232       4,137,966       3,483,796       3,482,645       3,267,525       4,349,473       3,133,070  
                                                         
Net interest margin*
     4.63 %     3.90 %     3.60 %     3.61 %     3.67 %     4.05 %     3.71 %
Net interest margin (fully tax equivalent)*
     4.65 %     3.93 %     3.64 %     3.65 %     3.71 %     4.08 %     3.77 %
                                                         
* 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
    
Twelve Months Ended
  
   
Dec. 31,
    
Sep. 30,
    
June 30,
    
Mar. 31,
    
Dec. 31,
    
Dec. 31,
  
   
2009
    
2009
    
2009
    
2009
    
2008
    
2009
    
2008
  
         
(Dollars in thousands, except per share data)
              
Net income available to common shareholders (a)
   $ 12,795     $ 224,566     $ 450     $ 5,157     $ 2,084     $ 242,968     $ 22,962  
                                                         
Average total shareholders' equity
   $ 679,840     $ 480,839     $ 379,944     $ 350,857     $ 286,582     $ 473,793     $ 279,709  
Less:
                                                        
Average Preferred stock
     (78,573 )     (78,221 )     (78,126 )     (78,038 )     (7,805 )     (78,241 )     (1,962 )
Goodwill
     (51,908 )     (51,908 )     (28,261 )     (28,261 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (7,461 )     (8,094 )     (465 )     (500 )     (1,002 )     (7,461 )     (1,002 )
Average tangible common equity (b)
     541,898       342,616       273,092       244,058       249,514       336,183       248,484  
Add back: Average preferred stock
     78,573       78,221       78,126       78,038       7,805       78,241       1,962  
Average tangible shareholders' equity (c)
     620,471       420,837       351,218       322,096       257,319       414,424       250,446  
                                                         
Total shareholders' equity
     675,167       670,626       446,636       353,760       348,327       675,167       348,327  
Less:
                                                        
Preferred stock
     (79,195 )     (78,271 )     (78,173 )     (78,075 )     (78,019 )     (79,195 )     (78,019 )
Goodwill
     (51,908 )     (51,908 )     (28,261 )     (28,261 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (7,461 )     (8,094 )     (465 )     (500 )     (1,002 )     (7,461 )     (1,002 )
Tangible common equity (d)
     536,603       532,353       339,737       246,924       241,045       536,603       241,045  
Add back: Preferred stock
     79,195       78,271       78,173       78,075       78,019       79,195       78,019  
Tangible shareholders' equity (e)
     615,798       610,624       417,910       324,999       319,064       615,798       319,064  
                                                         
Total assets
     6,681,123       7,257,706       3,783,353       3,809,196       3,699,142       6,681,123       3,699,142  
Less:
                                                        
Goodwill
     (51,908 )     (51,908 )     (28,261 )     (28,261 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (7,461 )     (8,094 )     (465 )     (500 )     (1,002 )     (7,461 )     (1,002 )
Ending tangible assets (f)
     6,621,754       7,197,704       3,754,627       3,780,435       3,669,879       6,621,754       3,669,879  
                                                         
Risk-weighted assets (g)
     3,908,225       4,014,662       3,076,042       2,951,721       2,878,548       3,908,225       2,878,548  
                                                         
Total average assets
     6,863,923       4,508,809       3,784,458       3,777,510       3,566,051       4,741,514       3,426,275  
Less:
                                                        
Goodwill
     (51,908 )     (51,908 )     (28,261 )     (28,261 )     (28,261 )     (51,908 )     (28,261 )
Intangible assets
     (7,461 )     (8,094 )     (465 )     (500 )     (1,002 )     (7,461 )     (1,002 )
Average tangible assets (h)
     6,804,554       4,448,807       3,755,732       3,748,749       3,536,788       4,682,145       3,397,012  
                                                         
Ending common shares outstanding (i)
     51,433,821       51,431,422       51,434,346       37,474,422       37,481,201       51,433,821       37,481,201  
                                                         
Ratios
                                                        
Return on average tangible common shareholders' equity (a)/(b)
     9.37 %     260.04 %     0.66 %     8.57 %     3.32 %     72.27 %     9.24 %
Ending tangible common equity as a percent of:
                                                        
Ending tangible assets (d)/(f)
     8.10 %     7.40 %     9.06 %     6.54 %     6.57 %     8.10 %     6.57 %
Risk-weighted assets (d)/(g)
     13.73 %     13.26 %     11.05 %     8.38 %     8.37 %     13.73 %     8.37 %
Average tangible common equity as a percent
                                                        
of average tangible assets (b)/(h)
     7.96 %     7.70 %     7.27 %     6.51 %     7.05 %     7.18 %     7.31 %
Tangible book value per common share (d)/(i)
   $ 10.43     $ 10.35     $ 6.61     $ 6.59     $ 6.43     $ 10.43     $ 6.43  
Ending tangible shareholders' equity to
                                                        
ending tangible assets (e)/(f)
     9.30 %     8.48 %     11.14 %     8.60 %     8.70 %     9.30 %     8.70 %
Average tangible shareholders' equity to
                                                        
average tangible assets (c)/(h)
     9.12 %     9.46 %     9.35 %     8.59 %     7.28 %     8.85 %     7.37 %

First Financial Bancorp. does not intend for this Item 2.02 or Exhibit 99.1 to be treated as “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into its filings under the Securities Act of 1933, as amended (the “Securities Act”).   However, First Financial Bancorp, does intend for Exhibit 99.2 to be treated as “filed” for purposes of the Exchange Act, and therefore, incorporated by reference into its filings under the Securities Act.
 
 
                    
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 January 26, 2010.

The following exhibit shall be deemed to be “filed”, not “furnished” for purposes of the Exchange Act.
 
99.2
Financial information to accompany First Financial Bancorp. Press Release dated January 26, 2010.



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  
   
Franklin Hall
Executive Vice President and 
  
    Chief Financial Officer  
       
 
 
Date:  January 26, 2010
 


 


 
Form 8-K   First Financial Bancorp.
 
 

Exhibit Index

                             
 
Exhibit No.
 Description
   
99.1
First Financial Bancorp. Press Release dated January 26, 2010.
99.2
Financial information to accompany First Financial Bancorp. Press Release dated January 26, 2010.