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):       October 26, 2011

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

Ohio   0-12379   31-1042001
(State or other jurisdiction
of incorporation)
  
(Commission File
 Number)
  
(IRS Employer
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:  (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))
 
 
 
 
 
Form 8-K
First Financial Bancorp.

Item 2.02 
Results of Operations and Financial Condition.

On October 26, 2011, 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 2011.  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,
    
September 30,
  
   
2011
    
2011
    
2011
    
2010
    
2010
    
2011
    
2010
  
   
(Dollars in thousands)
              
Net interest income
   $ 65,218     $ 65,867     $ 67,335     $ 67,906     $ 67,846     $ 198,420     $ 207,604  
Tax equivalent adjustment
     236       240       238       220       222       714       698  
Net interest income - tax equivalent
   $ 65,454     $ 66,107     $ 67,573     $ 68,126     $ 68,068     $ 199,134     $ 208,302  
                                                         
Average earning assets
     5,687,036       5,733,604       5,772,224       5,792,624       5,867,311       5,730,642       5,946,078  
                                                         
Net interest margin*
     4.55 %     4.61 %     4.73 %     4.65 %     4.59 %     4.63 %     4.67 %
Net interest margin (fully tax equivalent)*
     4.57 %     4.62 %     4.75 %     4.67 %     4.60 %     4.65 %     4.68 %

*  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,
    
September 30,
  
   
2011
    
2011
    
2011
    
2010
    
2010
    
2011
    
2010
  
   
(Dollars in thousands, except per share data)
              
Net income available to common shareholders (a)
   $ 15,618     $ 15,973     $ 17,207     $ 14,300     $ 15,579     $ 48,798     $ 43,086  
                                                         
Average total shareholders' equity
   $ 725,809     $ 707,750     $ 695,062     $ 697,016     $ 684,112     $ 709,653     $ 678,260  
Less:
                                                        
Average Preferred stock
     0       0       0       0       0       0       (15,666 )
Goodwill
     (68,922 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (68,922 )     (51,820 )
Intangible assets
     (8,436 )     (4,847 )     (5,227 )     (5,604 )     (6,049 )     (8,436 )     (6,049 )
Average tangible common equity (b)
     648,451       651,083       638,015       639,592       626,243       632,295       604,725  
Add back: Average preferred stock
     0       0       0       0       0       0       15,666  
Average tangible shareholders' equity (c)
     648,451       651,083       638,015       639,592       626,243       632,295       620,391  
                                                         
Total shareholders' equity
     727,132       721,762       707,964       697,394       690,931       727,132       690,931  
Less:
                                                        
Preferred stock
     0       0       0       0       0       0       0  
Goodwill
     (68,922 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (68,922 )     (51,820 )
Intangible assets
     (8,436 )     (4,847 )     (5,227 )     (5,604 )     (6,049 )     (8,436 )     (6,049 )
Tangible common equity (d)
     649,774       665,095       650,917       639,970       633,062       649,774       633,062  
                                                         
Total assets
     6,337,729       6,041,607       6,314,481       6,250,225       6,154,500       6,337,729       6,154,500  
Less:
                                                        
Goodwill
     (68,922 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (68,922 )     (51,820 )
Intangible assets
     (8,436 )     (4,847 )     (5,227 )     (5,604 )     (6,049 )     (8,436 )     (6,049 )
Ending tangible assets (e)
     6,260,371       5,984,940       6,257,434       6,192,801       6,096,631       6,260,371       6,096,631  
                                                         
Risk-weighted assets (f)
     3,518,026       3,384,115       3,375,800       3,687,224       3,595,295       3,518,026       3,595,295  
                                                         
Total average assets
     6,136,815       6,219,754       6,266,408       6,270,480       6,408,479       6,207,184       6,558,138  
Less:
                                                        
Goodwill
     (68,922 )     (51,820 )     (51,820 )     (51,820 )     (51,820 )     (68,922 )     (51,820 )
Intangible assets
     (8,436 )     (4,847 )     (5,227 )     (5,604 )     (6,049 )     (8,436 )     (6,049 )
Average tangible assets (g)
     6,059,457       6,163,087       6,209,361       6,213,056       6,350,610       6,129,826       6,500,269  
                                                         
Ending common shares outstanding (h)
     58,256,136       58,259,440       58,286,890       58,064,977       58,057,934       58,256,136       58,057,934  
                                                         
Ratios
                                                        
Return on average tangible common shareholders' equity (a)/(b)
     9.56 %     9.84 %     10.94 %     8.87 %     9.87 %     10.32 %     9.53 %
Ending tangible common equity as a percent of:
                                                        
Ending tangible assets (d)/(e)
     10.38 %     11.11 %     10.40 %     10.33 %     10.38 %     10.38 %     10.38 %
Risk-weighted assets (d)/(f)
     18.47 %     19.65 %     19.28 %     17.36 %     17.61 %     18.47 %     17.61 %
Average tangible common equity as a percent of average tangible assets (b)/(g)
     10.70 %     10.56 %     10.28 %     10.29 %     9.86 %     10.32 %     9.30 %
Tangible book value per common share (d)/(h)
   $ 11.15     $ 11.42     $ 11.17     $ 11.02     $ 10.90     $ 11.15     $ 10.90  
Average tangible shareholders' equity to average tangible assets (c)/(g)
     10.70 %     10.56 %     10.28 %     10.29 %     9.86 %     10.32 %     9.54 %
 
 
 
 
 
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 26, 2011 – Furnished.
 
99.2
First Financial Bancorp. October 27, 2011 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, Chief Financial Officer
and Chief Operating Officer

Date:  October 26, 2011
 
 
 
 
 
Form 8-K
First Financial Bancorp.

Exhibit Index

Exhibit No.
  
Description
     
99.1
  
First Financial Bancorp. Press Release dated October 26, 2011.
99.2
  
First Financial Bancorp. October 27, 2011 Earnings Call slides.