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 25, 2012

 

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       45202
Cincinnati, Ohio        (Zip Code)
 (Address of principal executive offices)        

 

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 January 25, 2012, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the fourth quarter and year ended 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   Twelve Months Ended 
   Dec. 31,   Sep. 30,   June 30,   Mar. 31,   Dec. 31,   December 31, 
   2011   2011   2011   2011   2010   2011   2010 
    (Dollars in thousands)         
Net interest income  $65,476   $65,218   $65,867   $67,335   $67,906   $263,896   $275,510 
Tax equivalent adjustment   265    236    240    238    220    979    866 
Net interest income - tax equivalent  $65,741   $65,454   $66,107   $67,573   $68,126   $264,875   $276,376 
                                    
Average earning assets   6,014,136    5,687,036    5,733,604    5,772,224    5,792,624    5,802,098    5,907,399 
                                    
Net interest margin*   4.32%   4.55%   4.61%   4.73%   4.65%   4.55%   4.66%
Net interest margin (fully tax equivalent)*   4.34%   4.57%   4.62%   4.75%   4.67%   4.57%   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   Twelve Months Ended 
   Dec. 31,   Sep. 30,   June 30,   Mar. 31,   Dec. 31,   December 31, 
   2011   2011   2011   2011   2010   2011   2010 
    (Dollars in thousands, except per share data)         
Net income available to common shareholders (a)  $17,941   $15,618   $15,973   $17,207   $14,300   $66,739   $57,386 
                                    
Average total shareholders' equity  $719,964   $725,809   $707,750   $695,062   $697,016   $712,252   $682,987 
Less:                                   
Average Preferred stock   0    0    0    0    0    0    (11,717)
Goodwill   (95,050)   (68,922)   (51,820)   (51,820)   (51,820)   (95,050)   (51,820)
Intangible assets   (10,844)   (8,436)   (4,847)   (5,227)   (5,604)   (10,844)   (5,604)
Average tangible common equity (b)   614,070    648,451    651,083    638,015    639,592    606,358    613,846 
Add back: Average preferred stock   0    0    0    0    0    0    11,717 
Average tangible shareholders' equity (c)   614,070    648,451    651,083    638,015    639,592    606,358    625,563 
                                    
Total shareholders' equity   712,221    727,132    721,762    707,964    697,394    712,221    697,394 
Less:                                   
Preferred stock   0    0    0    0    0    0    0 
Goodwill   (95,050)   (68,922)   (51,820)   (51,820)   (51,820)   (95,050)   (51,820)
Intangible assets   (10,844)   (8,436)   (4,847)   (5,227)   (5,604)   (10,844)   (5,604)
Tangible common equity (d)   606,327    649,774    665,095    650,917    639,970    606,327    639,970 
                                    
Total assets   6,671,511    6,337,729    6,041,607    6,314,481    6,250,225    6,671,511    6,250,225 
Less:                                   
Goodwill   (95,050)   (68,922)   (51,820)   (51,820)   (51,820)   (95,050)   (51,820)
Intangible assets   (10,844)   (8,436)   (4,847)   (5,227)   (5,604)   (10,844)   (5,604)
Ending tangible assets (e)   6,565,617    6,260,371    5,984,940    6,257,434    6,192,801    6,565,617    6,192,801 
                                    
Risk-weighted assets (f)   3,645,403    3,518,026    3,384,115    3,375,800    3,687,224    3,645,403    3,687,224 
                                    
Total average assets   6,515,756    6,136,815    6,219,754    6,266,408    6,270,480    6,284,961    6,485,632 
Less:                                   
Goodwill   (95,050)   (68,922)   (51,820)   (51,820)   (51,820)   (95,050)   (51,820)
Intangible assets   (10,844)   (8,436)   (4,847)   (5,227)   (5,604)   (10,844)   (5,604)
Average tangible assets (g)   6,409,862    6,059,457    6,163,087    6,209,361    6,213,056    6,179,067    6,428,208 
                                    
Ending common shares outstanding (h)   58,267,054    58,256,136    58,259,440    58,286,890    58,064,977    58,267,054    58,064,977 
                                    
Ratios                                   
Return on average tangible common shareholders' equity (a)/(b)   11.59%   9.56%   9.84%   10.94%   8.87%   11.01%   9.35%
Ending tangible common equity as a percent of:                                     
Ending tangible assets (d)/(e)   9.23%   10.38%   11.11%   10.40%   10.33%   9.23%   10.33%
Risk-weighted assets (d)/(f)   16.63%   18.47%   19.65%   19.28%   17.36%   16.63%   17.36%
Average tangible common equity as a percent of average tangible assets (b)/(g)   9.58%   10.70%   10.56%   10.28%   10.29%   9.81%   9.55%
Tangible book value per common share (d)/(h)  $10.41   $11.15   $11.42   $11.17   $11.02   $10.41   $11.02 
Average tangible shareholders' equity to average tangible assets (c)/(g)   9.58%   10.70%   10.56%   10.28%   10.29%   9.81%   9.73%

  

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 January 25, 2012 – Furnished.

99.2         First Financial Bancorp. January 26, 2012 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: January 25, 2012

 

 
 

  

Form 8-K First Financial Bancorp.

 

Exhibit Index

 

Exhibit No. Description
   
99.1 First Financial Bancorp. Press Release dated January 25, 2012.
99.2 First Financial Bancorp. January 26, 2012 Earnings Call slides.