8K Earnings Release 3Q13




 
UNITED STATES
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): October 24, 2013
 

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


 
Ohio
 
31-1042001
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. employer
identification number)
 
Commission file number: 000-12379
 
255 East Fifth Street, Suite 700, Cincinnati, Ohio 45202
(Address of principal executive offices and zip code)
 
Registrant's telephone number, including area code: (877) 322-9530
 

 
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))





Item 2.02    Results of Operations and Financial Condition.

On October 24, 2013, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the first nine months and third quarter of 2013. A copy of the earnings press release is attached as Exhibit 99.1.

The earnings press release includes some financial measures outside of generally accepted accounting principles (GAAP), referred to as 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 table entitled “Consolidated Quarterly Statements of Income” under “Additional Data.” The second non-GAAP financial measure, Net interest income-tax equivalent, appears in the tables entitled “Additional Data” at the bottom of the “Consolidated Quarterly 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 utilizes these measures to make peer comparisons and 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.

Below is a table showing “net interest income” calculated and presented in accordance with GAAP and the adjustments to arrive at the non-GAAP financial measure “net interest income - tax equivalent.” The table also shows “net interest margin” as calculated and presented in accordance with GAAP as well as 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,
(Dollars in thousands)
2013
2013
2013
2012
2012
 
2013
2012
Net interest income
$
55,772

$
58,078

$
58,666

$
61,976

$
59,846

 
$
172,516

$
191,365

Tax equivalent adjustment
516

514

477

366

255

 
1,507

689

   Net interest income - tax equivalent
$
56,288

$
58,592

$
59,143

$
62,342

$
60,101

 
$
174,023

$
192,054

 
 
 
 
 
 
 
 
 
Average earning assets
$
5,659,432

$
5,791,715

$
5,887,810

$
5,779,969

$
5,658,059

 
$
5,778,815

$
5,806,615

 
 
 
 
 
 
 
 
 
Net interest margin*
3.91
%
4.02
%
4.04
%
4.27
%
4.21
%
 
3.99
%
4.40
%
Net interest margin (fully tax equivalent)*
3.95
%
4.06
%
4.07
%
4.29
%
4.23
%
 
4.03
%
4.42
%
 
 
 
 
 
 
 
 
 
* Margins are calculated using net interest income annualized divided by average earning assets.
 
 
 


The earnings press release also includes certain non-GAAP ratios in the “Consolidated Financial Highlights” page. These ratios are: (1) Return on average tangible shareholders' equity; (2) Ending tangible shareholders' equity as a percent of ending tangible assets; (3) Ending tangible shareholders' equity as a percent of risk-weighted assets; (4) Average tangible shareholders' equity as a percent of average tangible assets; and (5) Tangible book value per share. The Ending tangible shareholders' equity as a percent of ending tangible assets and Average tangible shareholders' 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 the corresponding GAAP components. 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,
(Dollars in thousands, except per share data)
2013
2013
2013
2012
2012
 
2013
2012
Net income (a)
$
14,911

$
15,829

$
13,824

$
16,265

$
16,242

 
$
44,564

$
51,038

 
 
 
 
 
 
 
 
 
Average total shareholders' equity
$
693,158

$
703,804

$
708,862

$
714,373

$
716,797

 
$
701,884

$
713,497

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(95,050
)
 
(95,050
)
(95,050
)
Intangible assets
(6,249
)
(6,620
)
(7,078
)
(7,648
)
(8,327
)
 
(6,249
)
(8,327
)
Average tangible equity (b)
591,859

602,134

606,734

611,675

613,420

 
600,585

610,120

 
 
 
 
 
 
 
 
 
Total shareholders' equity
692,039

695,452

701,614

710,425

715,966

 
692,039

715,966

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(95,050
)
 
(95,050
)
(95,050
)
Intangible assets
(6,249
)
(6,620
)
(7,078
)
(7,648
)
(8,327
)
 
(6,249
)
(8,327
)
Ending tangible equity (c)
590,740

593,782

599,486

607,727

612,589

 
590,740

612,589

 
 
 
 
 
 
 
 
 
Total assets
6,253,441

6,274,575

6,349,017

6,497,048

6,235,087

 
6,253,441

6,235,087

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(95,050
)
 
(95,050
)
(95,050
)
Intangible assets
(6,249
)
(6,620
)
(7,078
)
(7,648
)
(8,327
)
 
(6,249
)
(8,327
)
Ending tangible assets (d)
6,152,142

6,172,905

6,246,889

6,394,350

6,131,710

 
6,152,142

6,131,710

 
 
 
 
 
 
 
 
 
Risk-weighted assets (e)
4,140,561

4,093,644

3,982,479

3,904,096

3,789,957

 
4,140,561

3,789,957

 
 
 
 
 
 
 
 
 
Total average assets
6,193,722

6,310,602

6,391,049

6,294,084

6,166,667

 
6,297,735

6,326,272

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(95,050
)
 
(95,050
)
(95,050
)
Intangible assets
(6,249
)
(6,620
)
(7,078
)
(7,648
)
(8,327
)
 
(6,249
)
(8,327
)
Average tangible assets (f)
6,092,423

6,208,932

6,288,921

6,191,386

6,063,290

 
6,196,436

6,222,895

 
 
 
 
 
 
 
 
 
Ending common shares outstanding (g)
57,702,444

57,698,344

58,028,923

58,046,235

58,510,916

 
57,702,444

58,510,916

 
 
 
 
 
 
 
 
 
Ratios
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity (a)/(b)
10.00
%
10.54
%
9.24
%
10.58
%
10.53
%
 
9.92
%
11.17
%
Ending tangible shareholders' equity as a percent of:
 
 
 
 
 
 
 
Ending tangible assets (c)/(d)
9.60
%
9.62
%
9.60
%
9.50
%
9.99
%
 
9.60
%
9.99
%
Risk-weighted assets (b)/(e)
14.27
%
14.50
%
15.05
%
15.57
%
16.16
%
 
14.27
%
16.16
%
Average tangible shareholders' equity of average tangible assets (b)/(f)
9.71
%
9.70
%
9.65
%
9.88
%
10.12
%
 
9.69
%
9.80
%
Tangible book value per share (c)/(g)
$
10.24

$
10.29

$
10.33

$
10.47

$
10.47

 
$
10.24

$
10.47


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.








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 October 24, 2013 - Furnished.
99.2    First Financial Bancorp. October 25, 2013 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/ Anthony M. Stollings
 
 
Anthony M. Stollings
 
 
Executive Vice President, Chief Financial Officer
 
 
and Chief Administrative Officer
Date:
October 24, 2013
 

                    








Form 8-K                                First Financial Bancorp.

Exhibit Index
Exhibit No.        Description

99.1            First Financial Bancorp. Press Release dated October 24, 2013.
99.2            First Financial Bancorp. October 25, 2013 Earnings Call slides.