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):       November 2, 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 November 2, 2010, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the third 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
    
Nine Months Ended
  
   
Sep. 30,
    
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sep. 30,
    
Sep. 30,
  
   
2010
    
2010
    
2010
    
2009
    
2009
    
2010
    
2009
  
   
(Dollars in thousands)
  
Net interest income
   $ 67,846     $ 67,738     $ 72,020     $ 73,182     $ 40,664     $ 207,604     $ 102,801  
Tax equivalent adjustment
     222       212       212       295       300       646       970  
   Net interest income - tax equivalent
   $ 68,068     $ 67,950     $ 72,232     $ 73,477     $ 40,964     $ 208,250     $ 103,771  
                                                         
Average earning assets
     5,867,311       6,000,760       5,971,305       6,241,790       4,134,955       5,946,078       3,702,855  
                                                         
Net interest margin*
     4.59 %     4.53 %     4.89 %     4.65 %     3.90 %     4.67 %     3.71 %
Net interest margin (fully tax equivalent)*
     4.60 %     4.54 %     4.91 %     4.67 %     3.93 %     4.68 %     3.75 %
 
*  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
    
Nine Months Ended
  
   
Sep. 30,
    
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sep. 30,
    
Sep. 30,
  
   
2010
    
2010
    
2010
    
2009
    
2009
    
2010
    
2009
  
   
(Dollars in thousands, except per share data)
  
Net income available to common shareholders (a)
   $ 15,579     $ 17,774     $ 9,733     $ 12,795     $ 199,357     $ 43,086     $ 204,964  
                                                         
Average total shareholders' equity
   $ 684,112     $ 671,051     $ 679,567     $ 654,631     $ 477,550     $ 678,260     $ 403,248  
Less:
                                                        
Average Preferred stock
     0       0       (47,521 )     (78,573 )     (78,221 )     (15,666 )     (78,129 )
Goodwill
     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )
Intangible assets
     (6,049 )     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (6,049 )     (8,094 )
Average tangible common equity (b)
     626,243       612,617       573,168       516,777       339,415       604,725       265,205  
Add back: Average preferred stock
     0       0       47,521       78,573       78,221       15,666       78,129  
Average tangible shareholders' equity (c)
     626,243       612,617       620,689       595,350       417,636       620,391       343,334  
                                                         
Total shareholders' equity
     690,931       681,556       667,759       649,958       645,417       690,931       645,417  
Less:
                                                        
Preferred stock
     0       0       0       (79,195 )     (78,271 )     0       (78,271 )
Goodwill
     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )
Intangible assets
     (6,049 )     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (6,049 )     (8,094 )
Tangible common equity (d)
     633,062       623,122       608,881       511,482       507,232       633,062       507,232  
Add back: Preferred stock
     0       0       0       79,195       78,271       0       78,271  
Tangible shareholders' equity (e)
     633,062       623,122       608,881       590,677       585,503       633,062       585,503  
                                                         
Total assets
     6,154,500       6,583,635       6,548,896       6,657,593       7,234,176       6,154,500       7,234,176  
Less:
                                                        
Goodwill
     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )
Intangible assets
     (6,049 )     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (6,049 )     (8,094 )
Ending tangible assets (f)
     6,096,631       6,525,201       6,490,018       6,598,312       7,174,262       6,096,631       7,174,262  
                                                         
Risk-weighted assets (g)
     3,595,296       3,628,978       3,715,280       3,903,566       4,010,482       3,595,296       4,010,482  
                                                         
Total average assets
     6,408,479       6,621,021       6,647,541       6,840,393       4,505,740       6,558,138       4,025,236  
Less:
                                                        
Goodwill
     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )
Intangible assets
     (6,049 )     (6,614 )     (7,058 )     (7,461 )     (8,094 )     (6,049 )     (8,094 )
Average tangible assets (h)
     6,350,610       6,562,587       6,588,663       6,781,112       4,445,826       6,500,269       3,965,322  
                                                         
Ending common shares outstanding (i)
     58,057,934       58,062,655       57,833,969       51,433,821       51,431,422       58,057,934       51,431,422  
                                                         
Ratios
                                                        
Return on average tangible common shareholders' equity (a)/(b)
     9.87 %     11.64 %     6.89 %     9.82 %     233.03 %     9.53 %     103.33 %
Ending tangible common equity as a percent of:
                                                        
Ending tangible assets (d)/(f)
     10.38 %     9.55 %     9.38 %     7.75 %     7.07 %     10.38 %     7.07 %
Risk-weighted assets (d)/(g)
     17.61 %     17.17 %     16.39 %     13.10 %     12.65 %     17.61 %     12.65 %
Average tangible common equity as a percent
                                                        
of average tangible assets (b)/(h)
     9.86 %     9.33 %     8.70 %     7.62 %     7.63 %     9.30 %     6.69 %
Tangible book value per common share (d)/(i)
   $ 10.90     $ 10.73     $ 10.53     $ 9.94     $ 9.86     $ 10.90     $ 9.86  
Ending tangible shareholders' equity to
                                                        
ending tangible assets (e)/(f)
     10.38 %     9.55 %     9.38 %     8.95 %     8.16 %     10.38 %     8.16 %
Average tangible shareholders' equity to
                                                        
average tangible assets (c)/(h)
     9.86 %     9.33 %     9.42 %     8.78 %     9.39 %     9.54 %     8.66 %
 
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 November 2, 2010 – Furnished.
99.2
First Financial Bancorp. November 3, 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:  November 3, 2010
 
 
 
 
 
Form 8-K
First Financial Bancorp.
 
Exhibit Index
 
Exhibit No.
Description
   
99.1
First Financial Bancorp. Press Release dated November 2, 2010.
99.2
First Financial Bancorp. November 3, 2010 Earnings Call slides.