Exhibit 99.2
FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share)
(Unaudited)
Three months ended, | Twelve months ended | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||
2009 | 2009 | 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||
RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||
Net interest income | $ | 73,182 | $ | 40,664 | $ | 31,209 | $ | 30,928 | $ | 30,129 | $ | 175,983 | $ | 116,202 | ||||||||||||||
Net income | $ | 13,795 | $ | 225,566 | $ | 1,450 | $ | 5,735 | $ | 2,084 | $ | 246,546 | $ | 22,962 | ||||||||||||||
Net income available to common shareholders | $ | 12,795 | $ | 224,566 | $ | 450 | $ | 5,157 | $ | 2,084 | $ | 242,968 | $ | 22,962 | ||||||||||||||
Net earnings per common share - basic | $ | 0.25 | $ | 4.40 | $ | 0.01 | $ | 0.14 | $ | 0.06 | $ | 5.40 | $ | 0.62 | ||||||||||||||
Net earnings per common share - diluted | $ | 0.25 | $ | 4.36 | $ | 0.01 | $ | 0.14 | $ | 0.06 | $ | 5.33 | $ | 0.61 | ||||||||||||||
Dividends declared per common share | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.17 | $ | 0.40 | $ | 0.68 | ||||||||||||||
KEY FINANCIAL RATIOS | ||||||||||||||||||||||||||||
Return on average assets | 0.80 | % | 19.85 | % | 0.15 | % | 0.62 | % | 0.23 | % | 5.20 | % | 0.67 | % | ||||||||||||||
Return on average shareholders' equity | 8.05 | % | 186.11 | % | 1.53 | % | 6.63 | % | 2.89 | % | 52.04 | % | 8.21 | % | ||||||||||||||
Return on average common shareholders' equity | 8.44 | % | 221.29 | % | 0.60 | % | 7.67 | % | 2.97 | % | 61.43 | % | 8.27 | % | ||||||||||||||
Return on average tangible common shareholders' equity | 9.37 | % | 260.04 | % | 0.66 | % | 8.57 | % | 3.32 | % | 72.27 | % | 9.24 | % | ||||||||||||||
Net interest margin | 4.63 | % | 3.90 | % | 3.60 | % | 3.61 | % | 3.67 | % | 4.05 | % | 3.71 | % | ||||||||||||||
Net interest margin (fully tax equivalent) (1) | 4.65 | % | 3.93 | % | 3.64 | % | 3.65 | % | 3.71 | % | 4.08 | % | 3.77 | % | ||||||||||||||
Ending equity as a percent of ending assets | 10.11 | % | 9.24 | % | 11.81 | % | 9.29 | % | 9.42 | % | 10.11 | % | 9.42 | % | ||||||||||||||
Ending common equity as a percent of ending assets | 8.92 | % | 8.16 | % | 9.74 | % | 7.24 | % | 7.31 | % | 8.92 | % | 7.31 | % | ||||||||||||||
Ending tangible common equity as a percent of: | ||||||||||||||||||||||||||||
Ending tangible assets | 8.10 | % | 7.40 | % | 9.06 | % | 6.54 | % | 6.57 | % | 8.10 | % | 6.57 | % | ||||||||||||||
Risk-weighted assets | 13.73 | % | 13.26 | % | 11.05 | % | 8.38 | % | 8.37 | % | 13.73 | % | 8.37 | % | ||||||||||||||
Average equity as a percent of average assets | 9.90 | % | 10.66 | % | 10.04 | % | 9.29 | % | 8.04 | % | 9.99 | % | 8.16 | % | ||||||||||||||
Average common equity as a percent of average assets | 8.76 | % | 8.93 | % | 7.98 | % | 7.22 | % | 7.82 | % | 8.34 | % | 8.11 | % | ||||||||||||||
Average tangible common equity as a percent of average tangible assets | 7.96 | % | 7.70 | % | 7.27 | % | 6.51 | % | 7.05 | % | 7.18 | % | 7.31 | % | ||||||||||||||
Book value per common share | $ | 11.59 | $ | 11.52 | $ | 7.16 | $ | 7.36 | $ | 7.21 | $ | 11.59 | $ | 7.21 | ||||||||||||||
Tangible book value per common share | $ | 10.43 | $ | 10.35 | $ | 6.61 | $ | 6.59 | $ | 6.43 | $ | 10.43 | $ | 6.43 | ||||||||||||||
Tier 1 Ratio (2) | 16.74 | % | 16.07 | % | 14.77 | % | 12.16 | % | 12.38 | % | 16.74 | % | 12.38 | % | ||||||||||||||
Total Capital Ratio (2) | 18.00 | % | 17.32 | % | 16.02 | % | 13.39 | % | 13.62 | % | 18.00 | % | 13.62 | % | ||||||||||||||
Leverage Ratio (2) | 9.57 | % | 14.41 | % | 12.02 | % | 9.51 | % | 10.00 | % | 9.57 | % | 10.00 | % | ||||||||||||||
AVERAGE BALANCE SHEET ITEMS | ||||||||||||||||||||||||||||
Loans (3) | $ | 2,929,850 | $ | 2,886,729 | $ | 2,744,063 | $ | 2,717,097 | $ | 2,690,895 | $ | 2,820,202 | $ | 2,661,546 | ||||||||||||||
Covered loans and FDIC indemnification asset | 2,278,431 | 539,330 | 0 | 0 | 0 | 710,230 | 0 | |||||||||||||||||||||
Investment securities | 608,952 | 575,697 | 731,119 | 758,257 | 574,893 | 667,843 | 452,921 | |||||||||||||||||||||
Interest-bearing deposits with other banks | 447,999 | 136,210 | 8,614 | 7,291 | 1,737 | 151,198 | 18,603 | |||||||||||||||||||||
Total earning assets | $ | 6,265,232 | $ | 4,137,966 | $ | 3,483,796 | $ | 3,482,645 | $ | 3,267,525 | $ | 4,349,473 | $ | 3,133,070 | ||||||||||||||
Total assets | $ | 6,863,923 | $ | 4,508,809 | $ | 3,784,458 | $ | 3,777,510 | $ | 3,566,051 | $ | 4,741,514 | $ | 3,426,275 | ||||||||||||||
Noninterest-bearing deposits | $ | 768,573 | $ | 543,320 | $ | 425,330 | $ | 416,206 | $ | 412,644 | $ | 539,336 | $ | 397,267 | ||||||||||||||
Interest-bearing deposits | 4,781,908 | 3,065,377 | 2,408,054 | 2,405,700 | 2,367,121 | 3,171,496 | 2,400,136 | |||||||||||||||||||||
Total deposits | $ | 5,550,481 | $ | 3,608,697 | $ | 2,833,384 | $ | 2,821,906 | $ | 2,779,765 | $ | 3,710,832 | $ | 2,797,403 | ||||||||||||||
Borrowings | $ | 471,916 | $ | 377,406 | $ | 542,578 | $ | 566,808 | $ | 474,655 | $ | 489,109 | $ | 321,539 | ||||||||||||||
Shareholders' equity | $ | 679,840 | $ | 480,839 | $ | 379,944 | $ | 350,857 | $ | 286,582 | $ | 473,793 | $ | 279,709 | ||||||||||||||
CREDIT QUALITY RATIOS (excluding covered assets) | ||||||||||||||||||||||||||||
Allowance to ending loans | 2.05 | % | 1.94 | % | 1.34 | % | 1.33 | % | 1.34 | % | 2.05 | % | 1.34 | % | ||||||||||||||
Allowance to nonaccrual loans | 82.77 | % | 92.17 | % | 102.81 | % | 147.57 | % | 199.51 | % | 82.77 | % | 199.51 | % | ||||||||||||||
Allowance to nonperforming loans | 76.25 | % | 87.68 | % | 102.27 | % | 146.38 | % | 197.27 | % | 76.25 | % | 197.27 | % | ||||||||||||||
Nonperforming loans to total loans | 2.69 | % | 2.21 | % | 1.31 | % | 0.91 | % | 0.68 | % | 2.69 | % | 0.68 | % | ||||||||||||||
Nonperforming assets to ending loans, plus OREO | 2.83 | % | 2.36 | % | 1.48 | % | 1.04 | % | 0.83 | % | 2.83 | % | 0.83 | % | ||||||||||||||
Nonperforming assets to total assets | 1.23 | % | 0.94 | % | 1.14 | % | 0.75 | % | 0.60 | % | 1.23 | % | 0.60 | % | ||||||||||||||
Net charge-offs to average loans (annualized) | 1.53 | % | 1.31 | % | 1.19 | % | 0.55 | % | 0.73 | % | 1.16 | % | 0.47 | % |
(1) 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.
(2) December 31, 2009 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.
- 14 -
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
Three months ended, | Twelve months ended, | |||||||||||||||||||||||
Dec. 31, | Dec. 31, | |||||||||||||||||||||||
2009 | 2008 | % Change | 2009 | 2008 | % Change | |||||||||||||||||||
Interest income | ||||||||||||||||||||||||
Loans, including fees | $ | 81,471 | $ | 37,864 | 115.2 | % | $ | 195,917 | $ | 159,985 | 22.5 | % | ||||||||||||
Investment securities | ||||||||||||||||||||||||
Taxable | 6,422 | 6,697 | (4.1 | )% | 29,376 | 19,954 | 47.2 | % | ||||||||||||||||
Tax-exempt | 320 | 519 | (38.3 | )% | 1,492 | 2,733 | (45.4 | )% | ||||||||||||||||
Total investment securities interest | 6,742 | 7,216 | (6.6 | )% | 30,868 | 22,687 | 36.1 | % | ||||||||||||||||
Other earning assets | 5,132 | 6 | 85433.3 | % | 6,443 | 633 | 917.9 | % | ||||||||||||||||
Total interest income | 93,345 | 45,086 | 107.0 | % | 233,228 | 183,305 | 27.2 | % | ||||||||||||||||
Interest expense | ||||||||||||||||||||||||
Deposits | 17,207 | 12,015 | 43.2 | % | 47,580 | 57,997 | (18.0 | )% | ||||||||||||||||
Short-term borrowings | 23 | 1,186 | (98.1 | )% | 1,318 | 4,828 | (72.7 | )% | ||||||||||||||||
Long-term borrowings | 2,611 | 1,395 | 87.2 | % | 7,145 | 2,892 | 147.1 | % | ||||||||||||||||
Subordinated debentures and capital securities | 322 | 361 | (10.8 | )% | 1,202 | 1,386 | (13.3 | )% | ||||||||||||||||
Total interest expense | 20,163 | 14,957 | 34.8 | % | 57,245 | 67,103 | (14.7 | )% | ||||||||||||||||
Net interest income | 73,182 | 30,129 | 142.9 | % | 175,983 | 116,202 | 51.4 | % | ||||||||||||||||
Provision for loan and lease losses | 14,812 | 10,475 | 41.4 | % | 56,084 | 19,410 | 188.9 | % | ||||||||||||||||
Net interest income after provision for loan and lease losses | 58,370 | 19,654 | 197.0 | % | 119,899 | 96,792 | 23.9 | % | ||||||||||||||||
Noninterest income | ||||||||||||||||||||||||
Service charges on deposit accounts | 5,886 | 4,752 | 23.9 | % | 19,662 | 19,658 | 0.0 | % | ||||||||||||||||
Trust and wealth management fees | 3,584 | 3,745 | (4.3 | )% | 13,465 | 17,411 | (22.7 | )% | ||||||||||||||||
Bankcard income | 1,869 | 1,457 | 28.3 | % | 5,961 | 5,653 | 5.4 | % | ||||||||||||||||
Net gains from sales of loans | 341 | 321 | 6.2 | % | 1,196 | 1,104 | 8.3 | % | ||||||||||||||||
Gains on sales of investment securities | 0 | 0 | N/M | 3,349 | 1,585 | 111.3 | % | |||||||||||||||||
Gain on acquisition | 0 | 0 | N/M | 379,086 | 0 | N/M | ||||||||||||||||||
(Loss) income on preferred securities | (138 | ) | (137 | ) | 0.7 | % | 139 | (3,738 | ) | (103.7 | )% | |||||||||||||
Other | 12,607 | 2,510 | 402.3 | % | 18,449 | 10,076 | 83.1 | % | ||||||||||||||||
Total noninterest income | 24,149 | 12,648 | 90.9 | % | 441,307 | 51,749 | 752.8 | % | ||||||||||||||||
Noninterest expenses | ||||||||||||||||||||||||
Salaries and employee benefits | 30,141 | 17,015 | 77.1 | % | 86,068 | 66,862 | 28.7 | % | ||||||||||||||||
Net occupancy | 7,290 | 2,635 | 176.7 | % | 16,202 | 10,635 | 52.3 | % | ||||||||||||||||
Furniture and equipment | 2,527 | 1,748 | 44.6 | % | 8,054 | 6,708 | 20.1 | % | ||||||||||||||||
Data processing | 890 | 840 | 6.0 | % | 3,475 | 3,238 | 7.3 | % | ||||||||||||||||
Marketing | 1,283 | 935 | 37.2 | % | 3,494 | 2,548 | 37.1 | % | ||||||||||||||||
Communication | 1,169 | 704 | 66.1 | % | 3,246 | 2,859 | 13.5 | % | ||||||||||||||||
Professional services | 2,605 | 912 | 185.6 | % | 6,032 | 3,463 | 74.2 | % | ||||||||||||||||
State intangible tax | 564 | 435 | 29.7 | % | 2,508 | 2,506 | 0.1 | % | ||||||||||||||||
FDIC expense | 1,529 | 158 | 867.7 | % | 6,847 | 363 | 1786.2 | % | ||||||||||||||||
Other | 13,609 | 4,465 | 204.8 | % | 34,712 | 15,994 | 117.0 | % | ||||||||||||||||
Total noninterest expenses | 61,607 | 29,847 | 106.4 | % | 170,638 | 115,176 | 48.2 | % | ||||||||||||||||
Income before income taxes | 20,912 | 2,455 | 751.8 | % | 390,568 | 33,365 | 1070.6 | % | ||||||||||||||||
Income tax expense | 7,117 | 371 | 1818.3 | % | 144,022 | 10,403 | 1284.4 | % | ||||||||||||||||
Net income | 13,795 | 2,084 | 561.9 | % | 246,546 | 22,962 | 973.7 | % | ||||||||||||||||
Dividends on preferred stock | 1,000 | 0 | N/M | 3,578 | 0 | N/M | ||||||||||||||||||
Income available to common shareholders | $ | 12,795 | $ | 2,084 | 514.0 | % | $ | 242,968 | $ | 22,962 | 958.1 | % | ||||||||||||
ADDITIONAL DATA | ||||||||||||||||||||||||
Net earnings per common share - basic | $ | 0.25 | $ | 0.06 | $ | 5.40 | $ | 0.62 | ||||||||||||||||
Net earnings per common share - diluted | $ | 0.25 | $ | 0.06 | $ | 5.33 | $ | 0.61 | ||||||||||||||||
Dividends declared per common share | $ | 0.10 | $ | 0.17 | $ | 0.40 | $ | 0.68 | ||||||||||||||||
Return on average assets | 0.80 | % | 0.23 | % | 5.20 | % | 0.67 | % | ||||||||||||||||
Return on average shareholders' equity | 8.05 | % | 2.89 | % | 52.04 | % | 8.21 | % | ||||||||||||||||
Interest income | $ | 93,345 | $ | 45,086 | 107.0 | % | $ | 233,228 | $ | 183,305 | 27.2 | % | ||||||||||||
Tax equivalent adjustment | 295 | 360 | (18.1 | )% | 1,265 | 1,808 | (30.0 | )% | ||||||||||||||||
Interest income - tax equivalent | 93,640 | 45,446 | 106.0 | % | 234,493 | 185,113 | 26.7 | % | ||||||||||||||||
Interest expense | 20,163 | 14,957 | 34.8 | % | 57,245 | 67,103 | (14.7 | )% | ||||||||||||||||
Net interest income - tax equivalent | $ | 73,477 | $ | 30,489 | 141.0 | % | $ | 177,248 | $ | 118,010 | 50.2 | % | ||||||||||||
Net interest margin | 4.63 | % | 3.67 | % | 4.05 | % | 3.71 | % | ||||||||||||||||
Net interest margin (fully tax equivalent) (1) | 4.65 | % | 3.71 | % | 4.08 | % | 3.77 | % | ||||||||||||||||
Full-time equivalent employees (2) | 1,390 | 1,061 |
(1) 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 income on a fully tax equivalent basis. Therefore, management believes, these measures provided useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(2) Does not include associates from acquisitions that are currently in a temporary hire status.
N/M = Not meaningful.
- 15 -
FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
2009 | ||||||||||||||||||||||||
Fourth | Third | Second | First | % Change | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Full Year | Linked Qtr. | |||||||||||||||||||
Interest income | ||||||||||||||||||||||||
Loans, including fees | $ | 81,471 | $ | 46,811 | $ | 33,978 | $ | 33,657 | $ | 195,917 | 74.0 | % | ||||||||||||
Investment securities | ||||||||||||||||||||||||
Taxable | 6,422 | 6,241 | 8,023 | 8,690 | 29,376 | 2.9 | % | |||||||||||||||||
Tax-exempt | 320 | 352 | 386 | 434 | 1,492 | (9.1 | )% | |||||||||||||||||
Total investment securities interest | 6,742 | 6,593 | 8,409 | 9,124 | 30,868 | 2.3 | % | |||||||||||||||||
Other earning assets | 5,132 | 1,311 | 0 | 0 | 6,443 | N/M | ||||||||||||||||||
Total interest income | 93,345 | 54,715 | 42,387 | 42,781 | 233,228 | 70.6 | % | |||||||||||||||||
Interest expense | ||||||||||||||||||||||||
Deposits | 17,207 | 11,490 | 9,080 | 9,803 | 47,580 | 49.8 | % | |||||||||||||||||
Short-term borrowings | 23 | 261 | 527 | 507 | 1,318 | (91.2 | )% | |||||||||||||||||
Long-term borrowings | 2,611 | 1,977 | 1,251 | 1,306 | 7,145 | 32.1 | % | |||||||||||||||||
Subordinated debentures and capital securities | 322 | 323 | 320 | 237 | 1,202 | (0.3 | )% | |||||||||||||||||
Total interest expense | 20,163 | 14,051 | 11,178 | 11,853 | 57,245 | 43.5 | % | |||||||||||||||||
Net interest income | 73,182 | 40,664 | 31,209 | 30,928 | 175,983 | 80.0 | % | |||||||||||||||||
Provision for loan and lease losses | 14,812 | 26,655 | 10,358 | 4,259 | 56,084 | (44.4 | )% | |||||||||||||||||
Net interest income after provision for loan and lease losses | 58,370 | 14,009 | 20,851 | 26,669 | 119,899 | 316.7 | % | |||||||||||||||||
Noninterest income | ||||||||||||||||||||||||
Service charges on deposit accounts | 5,886 | 5,408 | 4,289 | 4,079 | 19,662 | 8.8 | % | |||||||||||||||||
Trust and wealth management fees | 3,584 | 3,339 | 3,253 | 3,289 | 13,465 | 7.3 | % | |||||||||||||||||
Bankcard income | 1,869 | 1,379 | 1,422 | 1,291 | 5,961 | 35.5 | % | |||||||||||||||||
Net gains from sales of loans | 341 | 63 | 408 | 384 | 1,196 | 441.3 | % | |||||||||||||||||
Gains on sales of investment securities | 0 | 0 | 3,349 | 0 | 3,349 | N/M | ||||||||||||||||||
Gain on acquisition | 0 | 379,086 | 0 | 0 | 379,086 | (100.0 | )% | |||||||||||||||||
(Loss) income on preferred securities | (138 | ) | 154 | 112 | 11 | 139 | (189.6 | )% | ||||||||||||||||
Other | 12,607 | 1,599 | 1,264 | 2,979 | 18,449 | 688.4 | % | |||||||||||||||||
Total noninterest income | 24,149 | 391,028 | 14,097 | 12,033 | 441,307 | (93.8 | )% | |||||||||||||||||
Noninterest expenses | ||||||||||||||||||||||||
Salaries and employee benefits | 30,141 | 22,051 | 16,223 | 17,653 | 86,068 | 36.7 | % | |||||||||||||||||
Net occupancy | 7,290 | 3,442 | 2,653 | 2,817 | 16,202 | 111.8 | % | |||||||||||||||||
Furniture and equipment | 2,527 | 1,874 | 1,851 | 1,802 | 8,054 | 34.8 | % | |||||||||||||||||
Data processing | 890 | 973 | 794 | 818 | 3,475 | (8.5 | )% | |||||||||||||||||
Marketing | 1,283 | 871 | 700 | 640 | 3,494 | 47.3 | % | |||||||||||||||||
Communication | 1,169 | 737 | 669 | 671 | 3,246 | 58.6 | % | |||||||||||||||||
Professional services | 2,605 | 1,220 | 1,254 | 953 | 6,032 | 113.5 | % | |||||||||||||||||
State intangible tax | 564 | 628 | 648 | 668 | 2,508 | (10.2 | )% | |||||||||||||||||
FDIC expense | 1,529 | 1,612 | 3,424 | 282 | 6,847 | (5.1 | )% | |||||||||||||||||
Other | 13,609 | 12,893 | 4,580 | 3,630 | 34,712 | 5.6 | % | |||||||||||||||||
Total noninterest expenses | 61,607 | 46,301 | 32,796 | 29,934 | 170,638 | 33.1 | % | |||||||||||||||||
Income before income taxes | 20,912 | 358,736 | 2,152 | 8,768 | 390,568 | (94.2 | )% | |||||||||||||||||
Income tax expense | 7,117 | 133,170 | 702 | 3,033 | 144,022 | (94.7 | )% | |||||||||||||||||
Net income | 13,795 | 225,566 | 1,450 | 5,735 | 246,546 | (93.9 | )% | |||||||||||||||||
Dividends on preferred stock | 1,000 | 1,000 | 1,000 | 578 | 3,578 | 0.0 | % | |||||||||||||||||
Income available to common shareholders | $ | 12,795 | $ | 224,566 | $ | 450 | $ | 5,157 | $ | 242,968 | (94.3 | )% | ||||||||||||
ADDITIONAL DATA | ||||||||||||||||||||||||
Net earnings per common share - basic | $ | 0.25 | $ | 4.40 | $ | 0.01 | $ | 0.14 | $ | 5.40 | ||||||||||||||
Net earnings per common share - diluted | $ | 0.25 | $ | 4.36 | $ | 0.01 | $ | 0.14 | $ | 5.33 | ||||||||||||||
Dividends declared per common share | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.40 | ||||||||||||||
Return on average assets | 0.80 | % | 19.85 | % | 0.15 | % | 0.62 | % | 5.20 | % | ||||||||||||||
Return on average shareholders' equity | 8.05 | % | 186.11 | % | 1.53 | % | 6.63 | % | 52.04 | % | ||||||||||||||
Interest income | $ | 93,345 | $ | 54,715 | $ | 42,387 | $ | 42,781 | $ | 233,228 | 70.6 | % | ||||||||||||
Tax equivalent adjustment | 295 | 300 | 307 | 363 | 1,265 | (1.7 | )% | |||||||||||||||||
Interest income – tax equivalent | 93,640 | 55,015 | 42,694 | 43,144 | 234,493 | 70.2 | % | |||||||||||||||||
Interest expense | 20,163 | 14,051 | 11,178 | 11,853 | 57,245 | 43.5 | % | |||||||||||||||||
Net interest income - tax equivalent | $ | 73,477 | $ | 40,964 | $ | 31,516 | $ | 31,291 | $ | 177,248 | 79.4 | % | ||||||||||||
Net interest margin | 4.63 | % | 3.90 | % | 3.60 | % | 3.61 | % | 4.05 | % | ||||||||||||||
Net interest margin (fully tax equivalent) (1) | 4.65 | % | 3.93 | % | 3.64 | % | 3.65 | % | 4.08 | % | ||||||||||||||
Full-time equivalent employees (2) | 1,390 | 1,150 | 1,048 | 1,063 |
(1) 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 income on a fully tax equivalent basis. Therefore, management believes, these measures provided useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
(2) Does not include associates from acquisitions that are currently in a temporary hire status.
N/M = Not meaningful.
- 16 -
FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
2008 | ||||||||||||||||||||
Fourth | Third | Second | First | Full | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Interest income | ||||||||||||||||||||
Loans, including fees | $ | 37,864 | $ | 39,754 | $ | 39,646 | $ | 42,721 | $ | 159,985 | ||||||||||
Investment securities | ||||||||||||||||||||
Taxable | 6,697 | 5,349 | 4,387 | 3,521 | 19,954 | |||||||||||||||
Tax-exempt | 519 | 631 | 792 | 791 | 2,733 | |||||||||||||||
Total investment securities interest | 7,216 | 5,980 | 5,179 | 4,312 | 22,687 | |||||||||||||||
Other earning assets | 6 | 22 | 40 | 565 | 633 | |||||||||||||||
Total interest income | 45,086 | 45,756 | 44,865 | 47,598 | 183,305 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 12,015 | 13,608 | 14,635 | 17,739 | 57,997 | |||||||||||||||
Short-term borrowings | 1,186 | 1,720 | 1,130 | 792 | 4,828 | |||||||||||||||
Long-term borrowings | 1,395 | 707 | 384 | 406 | 2,892 | |||||||||||||||
Subordinated debentures and capital securities | 361 | 311 | 302 | 412 | 1,386 | |||||||||||||||
Total interest expense | 14,957 | 16,346 | 16,451 | 19,349 | 67,103 | |||||||||||||||
Net interest income | 30,129 | 29,410 | 28,414 | 28,249 | 116,202 | |||||||||||||||
Provision for loan and lease losses | 10,475 | 3,219 | 2,493 | 3,223 | 19,410 | |||||||||||||||
Net interest income after provision for loan and lease losses | 19,654 | 26,191 | 25,921 | 25,026 | 96,792 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Service charges on deposit accounts | 4,752 | 5,348 | 4,951 | 4,607 | 19,658 | |||||||||||||||
Trust and wealth management fees | 3,745 | 4,390 | 4,654 | 4,622 | 17,411 | |||||||||||||||
Bankcard income | 1,457 | 1,405 | 1,493 | 1,298 | 5,653 | |||||||||||||||
Net gains from sales of loans | 321 | 376 | 188 | 219 | 1,104 | |||||||||||||||
Gains on sales of investment securities | 0 | 0 | 0 | 1,585 | 1,585 | |||||||||||||||
(Loss) income on preferred securities | (137 | ) | (3,400 | ) | (221 | ) | 20 | (3,738 | ) | |||||||||||
Other | 2,510 | 2,359 | 2,683 | 2,524 | 10,076 | |||||||||||||||
Total noninterest income | 12,648 | 10,478 | 13,748 | 14,875 | 51,749 | |||||||||||||||
Noninterest expenses | ||||||||||||||||||||
Salaries and employee benefits | 17,015 | 16,879 | 15,895 | 17,073 | 66,862 | |||||||||||||||
Net occupancy | 2,635 | 2,538 | 2,510 | 2,952 | 10,635 | |||||||||||||||
Furniture and equipment | 1,748 | 1,690 | 1,617 | 1,653 | 6,708 | |||||||||||||||
Data processing | 840 | 791 | 814 | 793 | 3,238 | |||||||||||||||
Marketing | 935 | 622 | 474 | 517 | 2,548 | |||||||||||||||
Communication | 704 | 601 | 749 | 805 | 2,859 | |||||||||||||||
Professional services | 912 | 729 | 1,061 | 761 | 3,463 | |||||||||||||||
State intangible tax | 435 | 697 | 688 | 686 | 2,506 | |||||||||||||||
FDIC expense | 158 | 115 | 121 | 127 | 521 | |||||||||||||||
Other | 4,465 | 3,678 | 4,040 | 3,653 | 15,836 | |||||||||||||||
Total noninterest expenses | 29,847 | 28,340 | 27,969 | 29,020 | 115,176 | |||||||||||||||
Income before income taxes | 2,455 | 8,329 | 11,700 | 10,881 | 33,365 | |||||||||||||||
Income tax expense | 371 | 2,597 | 3,892 | 3,543 | 10,403 | |||||||||||||||
Net income | 2,084 | 5,732 | 7,808 | 7,338 | 22,962 | |||||||||||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Net income available to common shareholders | $ | 2,084 | $ | 5,732 | $ | 7,808 | $ | 7,338 | $ | 22,962 | ||||||||||
ADDITIONAL DATA | ||||||||||||||||||||
Net earnings per common share - basic | $ | 0.06 | $ | 0.15 | $ | 0.21 | $ | 0.20 | $ | 0.62 | ||||||||||
Net earnings per common share - diluted | $ | 0.06 | $ | 0.15 | $ | 0.21 | $ | 0.20 | $ | 0.61 | ||||||||||
Dividends declared per common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.68 | ||||||||||
Return on average assets | 0.23 | % | 0.66 | % | 0.93 | % | 0.89 | % | 0.67 | % | ||||||||||
Return on average shareholders' equity | 2.89 | % | 8.24 | % | 11.26 | % | 10.66 | % | 8.21 | % | ||||||||||
Interest income | $ | 45,086 | $ | 45,756 | $ | 44,865 | $ | 47,598 | $ | 183,305 | ||||||||||
Tax equivalent adjustment | 360 | 424 | 510 | 514 | 1,808 | |||||||||||||||
Interest income - tax equivalent | 45,446 | 46,180 | 45,375 | 48,112 | 185,113 | |||||||||||||||
Interest expense | 14,957 | 16,346 | 16,451 | 19,349 | 67,103 | |||||||||||||||
Net interest income - tax equivalent | $ | 30,489 | $ | 29,834 | $ | 28,924 | $ | 28,763 | $ | 118,010 | ||||||||||
Net interest margin | 3.67 | % | 3.68 | % | 3.72 | % | 3.78 | % | 3.71 | % | ||||||||||
Net interest margin (fully tax equivalent) (1) | 3.71 | % | 3.73 | % | 3.78 | % | 3.85 | % | 3.77 | % | ||||||||||
Full-time equivalent employees | 1,061 | 1,052 | 1,058 | 1,056 | �� |
(1) 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 income on a fully tax equivalent basis. Therefore, management believes, these measures provided useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.
- 17 -
FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | % Change | % Change | ||||||||||||||||||||||
2009 | 2009 | 2009 | 2009 | 2008 | Linked Qtr. | Comparable Qtr. | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and due from banks | $ | 344,150 | $ | 243,924 | $ | 74,347 | $ | 72,508 | $ | 100,935 | 41.1 | % | 241.0 | % | ||||||||||||||
Interest-bearing deposits with other banks | 262,017 | 728,853 | 6,591 | 7,055 | 0 | (64.1 | )% | N/M | ||||||||||||||||||||
Investment securities trading | 200 | 338 | 184 | 72 | 61 | (40.8 | )% | 227.9 | % | |||||||||||||||||||
Investment securities available-for-sale | 471,002 | 523,355 | 528,179 | 732,868 | 659,756 | (10.0 | )% | (28.6 | )% | |||||||||||||||||||
Investment securities held-to-maturity | 18,115 | 17,928 | 4,536 | 4,701 | 4,966 | 1.0 | % | 264.8 | % | |||||||||||||||||||
Other investments | 89,830 | 87,693 | 27,976 | 27,976 | 27,976 | 2.4 | % | 221.1 | % | |||||||||||||||||||
Loans held for sale | 8,052 | 2,729 | 6,193 | 6,342 | 3,854 | 195.1 | % | 108.9 | % | |||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Commercial | 798,622 | 818,608 | 876,730 | 850,111 | 807,720 | (2.4 | )% | (1.1 | )% | |||||||||||||||||||
Real estate - construction | 253,223 | 245,535 | 266,452 | 251,115 | 232,989 | 3.1 | % | 8.7 | % | |||||||||||||||||||
Real estate - commercial | 1,079,628 | 1,037,121 | 988,901 | 859,303 | 846,673 | 4.1 | % | 27.5 | % | |||||||||||||||||||
Real estate - residential | 321,047 | 331,678 | 337,704 | 360,013 | 383,599 | (3.2 | )% | (16.3 | )% | |||||||||||||||||||
Installment | 82,989 | 86,940 | 88,370 | 91,767 | 98,581 | (4.5 | )% | (15.8 | )% | |||||||||||||||||||
Home equity | 328,940 | 324,340 | 307,749 | 298,000 | 286,110 | 1.4 | % | 15.0 | % | |||||||||||||||||||
Credit card | 29,027 | 27,713 | 27,023 | 26,191 | 27,538 | 4.7 | % | 5.4 | % | |||||||||||||||||||
Lease financing | 14 | 19 | 25 | 45 | 50 | (26.3 | )% | (72.0 | )% | |||||||||||||||||||
Total loans, excluding covered loans | 2,893,490 | 2,871,954 | 2,892,954 | 2,736,545 | 2,683,260 | 0.7 | % | 7.8 | % | |||||||||||||||||||
Covered loans | 1,929,549 | 2,041,691 | 0 | 0 | 0 | N/M | N/M | |||||||||||||||||||||
Total loans | 4,823,039 | 4,913,645 | 2,892,954 | 2,736,545 | 2,683,260 | (1.8 | )% | 79.7 | % | |||||||||||||||||||
Less | ||||||||||||||||||||||||||||
Allowance for loan and lease losses | 59,311 | 55,770 | 38,649 | 36,437 | 35,873 | 6.3 | % | 65.3 | % | |||||||||||||||||||
Net loans | 4,763,728 | 4,857,875 | 2,854,305 | 2,700,108 | 2,647,387 | (1.9 | )% | 79.9 | % | |||||||||||||||||||
Premises and equipment | 107,351 | 106,401 | 86,216 | 85,385 | 84,105 | 0.9 | % | 27.6 | % | |||||||||||||||||||
Goodwill | 51,908 | 51,908 | 28,261 | 28,261 | 28,261 | 0.0 | % | 83.7 | % | |||||||||||||||||||
Other intangibles | 7,461 | 8,094 | 465 | 500 | 1,002 | (7.8 | )% | 644.6 | % | |||||||||||||||||||
OREO covered by loss share | 12,916 | 11,057 | 0 | 0 | 0 | 16.8 | % | N/M | ||||||||||||||||||||
FDIC indemnification asset | 316,040 | 316,389 | 0 | 0 | 0 | (0.1 | )% | N/M | ||||||||||||||||||||
Accrued interest and other assets | 228,353 | 301,162 | 166,100 | 143,420 | 140,839 | (24.2 | )% | 62.1 | % | |||||||||||||||||||
Total Assets | $ | 6,681,123 | $ | 7,257,706 | $ | 3,783,353 | $ | 3,809,196 | $ | 3,699,142 | (7.9 | )% | 80.6 | % | ||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Interest-bearing | $ | 1,356,249 | $ | 1,364,556 | $ | 599,365 | $ | 622,263 | $ | 636,945 | (0.6 | )% | 112.9 | % | ||||||||||||||
Savings | 1,010,469 | 965,750 | 657,300 | 705,229 | 583,081 | 4.6 | % | 73.3 | % | |||||||||||||||||||
Time | 2,229,400 | 2,703,392 | 1,111,399 | 1,137,398 | 1,150,208 | (17.5 | )% | 93.8 | % | |||||||||||||||||||
Total interest-bearing deposits | 4,596,118 | 5,033,698 | 2,368,064 | 2,464,890 | 2,370,234 | (8.7 | )% | 93.9 | % | |||||||||||||||||||
Noninterest-bearing | 754,522 | 802,286 | 423,781 | 427,068 | 413,283 | (6.0 | )% | 82.6 | % | |||||||||||||||||||
Total deposits | 5,350,640 | 5,835,984 | 2,791,845 | 2,891,958 | 2,783,517 | (8.3 | )% | 92.2 | % | |||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 37,430 | 35,763 | 206,777 | 162,549 | 147,533 | 4.7 | % | (74.6 | )% | |||||||||||||||||||
Federal Home Loan Bank | 0 | 65,000 | 125,000 | 160,000 | 150,000 | (100.0 | )% | (100.0 | )% | |||||||||||||||||||
Other | 0 | 0 | 25,000 | 40,000 | 57,000 | N/M | (100.0 | )% | ||||||||||||||||||||
Total short-term borrowings | 37,430 | 100,763 | 356,777 | 362,549 | 354,533 | (62.9 | )% | (89.4 | )% | |||||||||||||||||||
Long-term debt | 404,716 | 410,356 | 135,908 | 136,832 | 148,164 | (1.4 | )% | 173.2 | % | |||||||||||||||||||
Other long-term debt | 20,620 | 20,620 | 20,620 | 20,620 | 20,620 | 0.0 | % | 0.0 | % | |||||||||||||||||||
Accrued interest and other liabilities | 192,550 | 219,357 | 31,567 | 43,477 | 43,981 | (12.2 | )% | 337.8 | % | |||||||||||||||||||
Total Liabilities | 6,005,956 | 6,587,080 | 3,336,717 | 3,455,436 | 3,350,815 | (8.8 | )% | 79.2 | % | |||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Preferred stock | 79,195 | 78,271 | 78,173 | 78,075 | 78,019 | 1.2 | % | 1.5 | % | |||||||||||||||||||
Common stock | 490,532 | 490,854 | 490,292 | 394,887 | 394,169 | (0.1 | )% | 24.4 | % | |||||||||||||||||||
Retained earnings | 301,328 | 293,610 | 74,285 | 77,695 | 76,339 | 2.6 | % | 294.7 | % | |||||||||||||||||||
Accumulated other comprehensive loss | (10,487 | ) | (6,659 | ) | (10,700 | ) | (8,564 | ) | (11,905 | ) | 57.5 | % | (11.9 | )% | ||||||||||||||
Treasury stock, at cost | (185,401 | ) | (185,450 | ) | (185,414 | ) | (188,333 | ) | (188,295 | ) | (0.0 | )% | (1.5 | )% | ||||||||||||||
Total Shareholders' Equity | 675,167 | 670,626 | 446,636 | 353,760 | 348,327 | 0.7 | % | 93.8 | % | |||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,681,123 | $ | 7,257,706 | $ | 3,783,353 | $ | 3,809,196 | $ | 3,699,142 | (7.9 | )% | 80.6 | % |
N/M = Not meaningful.
- 18 -
FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
Quarterly Averages | Year-to-Date Averages | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||
2009 | 2009 | 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and due from banks | $ | 274,601 | $ | 107,216 | $ | 72,402 | $ | 78,359 | $ | 87,307 | $ | 133,611 | $ | 86,265 | ||||||||||||||
Interest-bearing deposits with other banks | 447,999 | 136,210 | 8,614 | 7,291 | 1,737 | 151,198 | 18,603 | |||||||||||||||||||||
Investment securities | 608,952 | 575,697 | 731,119 | 758,257 | 574,893 | 667,843 | 452,921 | |||||||||||||||||||||
Loans held for sale | 2,936 | 2,629 | 5,942 | 5,085 | 1,876 | 4,138 | 2,525 | |||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Commercial | 839,456 | 855,996 | 843,183 | 825,399 | 809,869 | 841,088 | 803,945 | |||||||||||||||||||||
Real estate - construction | 256,915 | 261,601 | 257,487 | 242,750 | 220,839 | 254,746 | 188,763 | |||||||||||||||||||||
Real estate - commercial | 1,048,650 | 1,002,073 | 869,985 | 858,403 | 830,121 | 945,456 | 771,014 | |||||||||||||||||||||
Real estate - residential | 333,858 | 333,981 | 348,834 | 372,853 | 417,499 | 347,238 | 486,568 | |||||||||||||||||||||
Installment | 87,825 | 87,506 | 89,857 | 94,881 | 102,814 | 89,991 | 116,851 | |||||||||||||||||||||
Home equity | 332,169 | 315,629 | 302,159 | 291,038 | 280,900 | 310,376 | 265,362 | |||||||||||||||||||||
Credit card | 28,025 | 27,292 | 26,577 | 26,641 | 26,902 | 27,138 | 26,348 | |||||||||||||||||||||
Lease financing | 16 | 22 | 39 | 47 | 75 | 31 | 170 | |||||||||||||||||||||
Total loans, excluding covered loans | 2,926,914 | 2,884,100 | 2,738,121 | 2,712,012 | 2,689,019 | 2,816,064 | 2,659,021 | |||||||||||||||||||||
Covered loans | 1,968,136 | 460,943 | 0 | 0 | 0 | 612,261 | 0 | |||||||||||||||||||||
Total loans | 4,895,050 | 3,345,043 | 2,738,121 | 2,712,012 | 2,689,019 | 3,428,325 | 2,659,021 | |||||||||||||||||||||
Less | ||||||||||||||||||||||||||||
Allowance for loan and lease losses | 54,164 | 42,034 | 36,644 | 37,189 | 29,710 | 42,553 | 29,391 | |||||||||||||||||||||
Net loans | 4,840,886 | 3,303,009 | 2,701,477 | 2,674,823 | 2,659,309 | 3,385,772 | 2,629,630 | |||||||||||||||||||||
Premises and equipment | 106,999 | 91,252 | 85,433 | 84,932 | 83,307 | 92,212 | 80,561 | |||||||||||||||||||||
Goodwill | 51,627 | 64,309 | 28,261 | 28,261 | 28,261 | 43,368 | 28,261 | |||||||||||||||||||||
Other intangibles | 7,885 | 2,553 | 489 | 982 | 613 | 2,995 | 646 | |||||||||||||||||||||
OREO covered by loss share | 11,383 | 7,065 | 0 | 0 | 0 | 4,650 | 0 | |||||||||||||||||||||
FDIC indemnification asset | 310,295 | 78,387 | 0 | 0 | 0 | 97,969 | 0 | |||||||||||||||||||||
Accrued interest and other assets | 200,360 | 140,482 | 150,721 | 139,520 | 128,748 | 157,758 | 126,863 | |||||||||||||||||||||
Total Assets | $ | 6,863,923 | $ | 4,508,809 | $ | 3,784,458 | $ | 3,777,510 | $ | 3,566,051 | $ | 4,741,514 | $ | 3,426,275 | ||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Interest-bearing | $ | 1,424,199 | $ | 745,604 | $ | 630,885 | $ | 642,934 | $ | 611,129 | $ | 862,730 | $ | 608,708 | ||||||||||||||
Savings | 978,842 | 835,615 | 645,197 | 620,509 | 604,370 | 771,202 | 610,875 | |||||||||||||||||||||
Time | 2,378,867 | 1,484,158 | 1,131,972 | 1,142,257 | 1,151,622 | 1,537,564 | 1,180,553 | |||||||||||||||||||||
Total interest-bearing deposits | 4,781,908 | 3,065,377 | 2,408,054 | 2,405,700 | 2,367,121 | 3,171,496 | 2,400,136 | |||||||||||||||||||||
Noninterest-bearing | 768,573 | 543,320 | 425,330 | 416,206 | 412,644 | 539,336 | 397,267 | |||||||||||||||||||||
Total deposits | 5,550,481 | 3,608,697 | 2,833,384 | 2,821,906 | 2,779,765 | 3,710,832 | 2,797,403 | |||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 41,456 | 55,197 | 176,592 | 127,652 | 98,690 | 99,865 | 46,913 | |||||||||||||||||||||
Federal Home Loan Bank | 1,096 | 72,855 | 169,341 | 218,100 | 150,867 | 114,637 | 118,550 | |||||||||||||||||||||
Other | 0 | 22,826 | 39,836 | 56,078 | 53,044 | 29,512 | 56,680 | |||||||||||||||||||||
Total short-term borrowings | 42,552 | 150,878 | 385,769 | 401,830 | 302,601 | 244,014 | 222,143 | |||||||||||||||||||||
Long-term debt | 408,744 | 205,908 | 136,189 | 144,358 | 151,434 | 224,475 | 78,776 | |||||||||||||||||||||
Other long-term debt | 20,620 | 20,620 | 20,620 | 20,620 | 20,620 | 20,620 | 20,620 | |||||||||||||||||||||
Total borrowed funds | 471,916 | 377,406 | 542,578 | 566,808 | 474,655 | 489,109 | 321,539 | |||||||||||||||||||||
Accrued interest and other liabilities | 161,686 | 41,867 | 28,552 | 37,939 | 25,049 | 67,780 | 27,624 | |||||||||||||||||||||
Total Liabilities | 6,184,083 | 4,027,970 | 3,404,514 | 3,426,653 | 3,279,469 | 4,267,721 | 3,146,566 | |||||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Preferred stock | 78,573 | 78,221 | 78,126 | 78,038 | 7,805 | 78,241 | 1,962 | |||||||||||||||||||||
Common stock | 490,889 | 490,596 | 418,086 | 394,500 | 391,601 | 448,897 | 390,946 | |||||||||||||||||||||
Retained earnings | 302,159 | 106,729 | 78,296 | 77,317 | 81,932 | 141,647 | 81,396 | |||||||||||||||||||||
Accumulated other comprehensive loss | (6,372 | ) | (9,290 | ) | (7,936 | ) | (10,677 | ) | (6,462 | ) | (8,559 | ) | (6,069 | ) | ||||||||||||||
Treasury stock, at cost | (185,409 | ) | (185,417 | ) | (186,628 | ) | (188,321 | ) | (188,294 | ) | (186,433 | ) | (188,526 | ) | ||||||||||||||
Total Shareholders' Equity | 679,840 | 480,839 | 379,944 | 350,857 | 286,582 | 473,793 | 279,709 | |||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,863,923 | $ | 4,508,809 | $ | 3,784,458 | $ | 3,777,510 | $ | 3,566,051 | $ | 4,741,514 | $ | 3,426,275 |
- 19 -
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE / VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
Quarterly Averages | Year-to-Date Averages | ||||||||||||||||||||||||||||||||||
Dec. 31, 2009 | Sep. 30, 2009 | Dec. 31, 2008 | Dec. 31, 2009 | Dec. 31, 2008 | |||||||||||||||||||||||||||||||
Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | ||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||
Investment securities | $ | 608,952 | 4.39 | % | $ | 575,697 | 4.54 | % | $ | 574,893 | 4.99 | % | $ | 667,843 | 4.62 | % | $ | 452,921 | 5.01 | % | |||||||||||||||
Interest-bearing deposits with other banks | 447,999 | 0.18 | % | 136,210 | 0.25 | % | 1,737 | 1.37 | % | 151,198 | 0.14 | % | 18,603 | 3.40 | % | ||||||||||||||||||||
Gross loans, including covered loans and indemnification asset (2) | 5,208,281 | 6.58 | % | 3,426,059 | 5.57 | % | 2,690,895 | 5.60 | % | 3,530,432 | 5.73 | % | 2,661,546 | 6.01 | % | ||||||||||||||||||||
Total earning assets | 6,265,232 | 5.91 | % | 4,137,966 | 5.25 | % | 3,267,525 | 5.49 | % | 4,349,473 | 5.36 | % | 3,133,070 | 5.85 | % | ||||||||||||||||||||
Nonearning assets | |||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (54,164 | ) | (42,034 | ) | (29,710 | ) | (42,553 | ) | (29,391 | ) | |||||||||||||||||||||||||
Cash and due from banks | 274,601 | 107,216 | 87,307 | 133,611 | 86,265 | ||||||||||||||||||||||||||||||
Accrued interest and other assets | 378,254 | 305,661 | 240,929 | 300,983 | 236,331 | ||||||||||||||||||||||||||||||
Total assets | $ | 6,863,923 | $ | 4,508,809 | $ | 3,566,051 | $ | 4,741,514 | $ | 3,426,275 | |||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | $ | 4,781,908 | 1.43 | % | $ | 3,065,377 | 1.49 | % | $ | 2,367,121 | 2.02 | % | $ | 3,171,496 | 1.50 | % | $ | 2,400,136 | 2.42 | % | |||||||||||||||
Borrowed funds | |||||||||||||||||||||||||||||||||||
Short-term borrowings | 42,552 | 0.21 | % | 150,878 | 0.69 | % | 302,601 | 1.56 | % | 244,014 | 0.54 | % | 222,143 | 2.17 | % | ||||||||||||||||||||
Long-term debt | 408,744 | 2.53 | % | 205,908 | 3.81 | % | 151,434 | 3.66 | % | 224,475 | 3.18 | % | 78,776 | 3.67 | % | ||||||||||||||||||||
Other long-term debt | 20,620 | 6.20 | % | 20,620 | 6.21 | % | 20,620 | 6.96 | % | 20,620 | 5.83 | % | 20,620 | 6.72 | % | ||||||||||||||||||||
Total borrowed funds | 471,916 | 2.49 | % | 377,406 | 2.69 | % | 474,655 | 2.47 | % | 489,109 | 1.98 | % | 321,539 | 2.83 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 5,253,824 | 1.52 | % | 3,442,783 | 1.62 | % | 2,841,776 | 2.09 | % | 3,660,605 | 1.56 | % | 2,721,675 | 2.47 | % | ||||||||||||||||||||
Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 768,573 | 543,320 | 412,644 | 539,336 | 397,267 | ||||||||||||||||||||||||||||||
Other liabilities | 161,686 | 41,867 | 25,049 | 67,780 | 27,624 | ||||||||||||||||||||||||||||||
Shareholders' equity | 679,840 | 480,839 | 286,582 | 473,793 | 279,709 | ||||||||||||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 6,863,923 | $ | 4,508,809 | $ | 3,566,051 | $ | 4,741,514 | $ | 3,426,275 | |||||||||||||||||||||||||
Net interest income (1) | $ | 73,182 | $ | 40,664 | $ | 30,129 | $ | 175,983 | $ | 116,202 | |||||||||||||||||||||||||
Net interest spread (1) | 4.39 | % | 3.63 | % | 3.40 | % | 3.80 | % | 3.39 | % | |||||||||||||||||||||||||
Net interest margin (1) | 4.63 | % | 3.90 | % | 3.67 | % | 4.05 | % | 3.71 | % |
(1) Not tax equivalent.
(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.
- 20 -
FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE / VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
Linked Qtr. Income Variance | Comparable Qtr. Income Variance | Year-to-Date Income Variance | ||||||||||||||||||||||||||||||||||
Rate | Volume | Total | Rate | Volume | Total | Rate | Volume | Total | ||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||||||
Investment securities | $ | (219 | ) | $ | 368 | $ | 149 | $ | (851 | ) | $ | 377 | $ | (474 | ) | $ | (1,753 | ) | $ | 9,934 | $ | 8,181 | ||||||||||||||
Interest-bearing deposits with other banks | 63 | 145 | 208 | (5 | ) | 207 | 202 | (607 | ) | 182 | (425 | ) | ||||||||||||||||||||||||
Gross loans, including covered loans and indemnification asset (2) | 8,709 | 29,564 | 38,273 | 6,773 | 41,758 | 48,531 | (7,585 | ) | 49,752 | 42,167 | ||||||||||||||||||||||||||
Total earning assets | 8,553 | 30,077 | 38,630 | 5,917 | 42,342 | 48,259 | (9,945 | ) | 59,868 | 49,923 | ||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | $ | (460 | ) | $ | 6,177 | $ | 5,717 | $ | (3,497 | ) | $ | 8,689 | $ | 5,192 | $ | (21,989 | ) | $ | 11,572 | $ | (10,417 | ) | ||||||||||||||
Borrowed funds | ||||||||||||||||||||||||||||||||||||
Short-term borrowings | (179 | ) | (59 | ) | (238 | ) | (1,022 | ) | (141 | ) | (1,163 | ) | (3,628 | ) | 118 | (3,510 | ) | |||||||||||||||||||
Long-term debt | (662 | ) | 1,296 | 634 | (428 | ) | 1,644 | 1,216 | (385 | ) | 4,638 | 4,253 | ||||||||||||||||||||||||
Other long-term debt | (1 | ) | - | (1 | ) | (39 | ) | - | (39 | ) | (184 | ) | - | (184 | ) | |||||||||||||||||||||
Total borrowed funds | (842 | ) | 1,237 | 395 | (1,489 | ) | 1,503 | 14 | (4,197 | ) | 4,756 | 559 | ||||||||||||||||||||||||
Total interest-bearing liabilities | (1,302 | ) | 7,414 | 6,112 | (4,986 | ) | 10,192 | 5,206 | (26,186 | ) | 16,328 | (9,858 | ) | |||||||||||||||||||||||
Net interest income (1) | $ | 9,855 | $ | 22,663 | $ | 32,518 | $ | 10,903 | $ | 32,150 | $ | 43,053 | $ | 16,241 | $ | 43,540 | $ | 59,781 |
(1) Not tax equivalent.
(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.
- 21 -
FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(excluding covered assets)
(Dollars in thousands)
(Unaudited)
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Full Year | Full Year | ||||||||||||||||||||||
2009 | 2009 | 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 55,770 | $ | 38,649 | $ | 36,437 | $ | 35,873 | $ | 30,353 | 35,873 | $ | 29,057 | |||||||||||||||
Provision for loan and lease losses | 14,812 | 26,655 | 10,358 | 4,259 | 10,475 | 56,084 | 19,410 | |||||||||||||||||||||
Gross charge-offs | ||||||||||||||||||||||||||||
Commercial | 1,143 | 2,924 | 4,707 | 2,521 | 2,168 | 11,295 | 5,227 | |||||||||||||||||||||
Real estate - construction | 6,788 | 4,552 | 1,340 | 0 | 0 | 12,680 | 0 | |||||||||||||||||||||
Real estate - commercial | 1,854 | 927 | 1,351 | 382 | 2,083 | 4,514 | 3,526 | |||||||||||||||||||||
Real estate - residential | 262 | 471 | 351 | 231 | 47 | 1,315 | 648 | |||||||||||||||||||||
Installment | 449 | 315 | 304 | 400 | 493 | 1,468 | 1,963 | |||||||||||||||||||||
Home equity | 1,105 | 382 | 332 | 218 | 238 | 2,037 | 1,549 | |||||||||||||||||||||
All other | 454 | 492 | 386 | 308 | 374 | 1,640 | 1,724 | |||||||||||||||||||||
Total gross charge-offs | 12,055 | 10,063 | 8,771 | 4,060 | 5,403 | 34,949 | 14,637 | |||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||
Commercial | 148 | 91 | 333 | 60 | 165 | 632 | 654 | |||||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Real estate - commercial | 360 | 167 | 14 | 16 | 40 | 557 | 99 | |||||||||||||||||||||
Real estate - residential | 3 | 2 | 20 | 2 | 5 | 27 | 25 | |||||||||||||||||||||
Installment | 195 | 205 | 203 | 254 | 189 | 857 | 975 | |||||||||||||||||||||
Home equity | 6 | 9 | 1 | 0 | 0 | 16 | 30 | |||||||||||||||||||||
All other | 72 | 55 | 54 | 33 | 49 | 214 | 260 | |||||||||||||||||||||
Total recoveries | 784 | 529 | 625 | 365 | 448 | 2,303 | 2,043 | |||||||||||||||||||||
Total net charge-offs | 11,271 | 9,534 | 8,146 | 3,695 | 4,955 | 32,646 | 12,594 | |||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 59,311 | $ | 55,770 | $ | 38,649 | $ | 36,437 | $ | 35,873 | 59,311 | $ | 35,873 | |||||||||||||||
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | ||||||||||||||||||||||||||||
Commercial | 0.47 | % | 1.31 | % | 2.08 | % | 1.21 | % | 0.98 | % | 1.27 | % | 0.57 | % | ||||||||||||||
Real estate - construction | 10.48 | % | 6.90 | % | 2.09 | % | 0.00 | % | 0.00 | % | 4.98 | % | 0.00 | % | ||||||||||||||
Real estate - commercial | 0.57 | % | 0.30 | % | 0.62 | % | 0.17 | % | 0.98 | % | 0.42 | % | 0.44 | % | ||||||||||||||
Real estate - residential | 0.31 | % | 0.56 | % | 0.38 | % | 0.25 | % | 0.04 | % | 0.37 | % | 0.13 | % | ||||||||||||||
Installment | 1.15 | % | 0.50 | % | 0.45 | % | 0.62 | % | 1.18 | % | 0.68 | % | 0.85 | % | ||||||||||||||
Home equity | 1.31 | % | 0.47 | % | 0.44 | % | 0.30 | % | 0.34 | % | 0.65 | % | 0.57 | % | ||||||||||||||
All other | 5.40 | % | 6.35 | % | 5.00 | % | 4.18 | % | 4.79 | % | 5.25 | % | 5.52 | % | ||||||||||||||
Total net charge-offs | 1.53 | % | 1.31 | % | 1.19 | % | 0.55 | % | 0.73 | % | 1.16 | % | 0.47 | % | ||||||||||||||
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | ||||||||||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||||||||||
Commercial | $ | 13,756 | $ | 13,244 | $ | 8,100 | $ | 8,412 | $ | 5,930 | $ | 13,756 | $ | 5,930 | ||||||||||||||
Real estate - construction | 35,604 | 26,575 | 11,936 | 240 | 240 | 35,604 | 240 | |||||||||||||||||||||
Real estate - commercial | 15,320 | 12,407 | 10,130 | 9,170 | 4,779 | 15,320 | 4,779 | |||||||||||||||||||||
Real estate - residential | 3,993 | 5,253 | 4,897 | 4,724 | 5,363 | 3,993 | 5,363 | |||||||||||||||||||||
Installment | 660 | 493 | 394 | 464 | 459 | 660 | 459 | |||||||||||||||||||||
Home equity | 2,324 | 2,534 | 2,136 | 1,681 | 1,204 | 2,324 | 1,204 | |||||||||||||||||||||
All other | 0 | 0 | 0 | 0 | 6 | 0 | 6 | |||||||||||||||||||||
Total nonaccrual loans | 71,657 | 60,506 | 37,593 | 24,691 | 17,981 | 71,657 | 17,981 | |||||||||||||||||||||
Restructured loans | 6,125 | 3,102 | 197 | 201 | 204 | 6,125 | 204 | |||||||||||||||||||||
Total nonperforming loans | 77,782 | 63,608 | 37,790 | 24,892 | 18,185 | 77,782 | 18,185 | |||||||||||||||||||||
Other real estate owned (OREO) | 4,145 | 4,301 | 5,166 | 3,513 | 4,028 | 4,145 | 4,028 | |||||||||||||||||||||
Total nonperforming assets | 81,927 | 67,909 | 42,956 | 28,405 | 22,213 | 81,927 | 22,213 | |||||||||||||||||||||
Accruing loans past due 90 days or more | 417 | 308 | 318 | 255 | 138 | 417 | 138 | |||||||||||||||||||||
Total underperforming assets | $ | 82,344 | $ | 68,217 | $ | 43,274 | $ | 28,660 | $ | 22,351 | $ | 82,344 | $ | 22,351 | ||||||||||||||
Total classified assets | $ | 163,451 | $ | 137,288 | $ | 106,315 | $ | 79,256 | $ | 67,393 | $ | 163,451 | $ | 67,393 | ||||||||||||||
CREDIT QUALITY RATIOS | ||||||||||||||||||||||||||||
Allowance for loan and lease losses to | ||||||||||||||||||||||||||||
Nonaccrual loans | 82.77 | % | 92.17 | % | 102.81 | % | 147.57 | % | 199.51 | % | 82.77 | % | 199.51 | % | ||||||||||||||
Nonperforming loans | 76.25 | % | 87.68 | % | 102.27 | % | 146.38 | % | 197.27 | % | 76.25 | % | 197.27 | % | ||||||||||||||
Total ending loans | 2.05 | % | 1.94 | % | 1.34 | % | 1.33 | % | 1.34 | % | 2.05 | % | 1.34 | % | ||||||||||||||
Nonperforming loans to total loans | 2.69 | % | 2.21 | % | 1.31 | % | 0.91 | % | 0.68 | % | 2.69 | % | 0.68 | % | ||||||||||||||
Nonperforming assets to | ||||||||||||||||||||||||||||
Ending loans, plus OREO | 2.83 | % | 2.36 | % | 1.48 | % | 1.04 | % | 0.83 | % | 2.83 | % | 0.83 | % | ||||||||||||||
Total assets | 1.23 | % | 0.94 | % | �� | 1.14 | % | 0.75 | % | 0.60 | % | 1.23 | % | 0.60 | % |
- 22 -
FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands)
(Unaudited)
Twelve months ended, | ||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2009 | 2009 | 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||
PER COMMON SHARE | ||||||||||||||||||||||||||||
Market Price | ||||||||||||||||||||||||||||
High | $ | 15.48 | $ | 12.07 | $ | 11.92 | $ | 12.10 | $ | 14.30 | $ | 15.48 | $ | 14.80 | ||||||||||||||
Low | $ | 11.83 | $ | 7.52 | $ | 7.35 | $ | 5.58 | $ | 10.81 | $ | 5.58 | $ | 8.10 | ||||||||||||||
Close | $ | 14.56 | $ | 12.05 | $ | 7.53 | $ | 9.53 | $ | 12.39 | $ | 14.56 | $ | 12.39 | ||||||||||||||
Average common shares outstanding - basic | 51,030,661 | 51,027,887 | 40,734,254 | 37,142,531 | 37,133,725 | 45,028,640 | 37,112,065 | |||||||||||||||||||||
Average common shares outstanding - diluted | 51,653,562 | 51,457,189 | 41,095,949 | 37,840,954 | 37,567,032 | 45,556,868 | 37,484,198 | |||||||||||||||||||||
Ending common shares outstanding | 51,433,821 | 51,431,422 | 51,434,346 | 37,474,422 | 37,481,201 | 51,433,821 | 37,481,201 | |||||||||||||||||||||
REGULATORY CAPITAL | Preliminary | Preliminary | ||||||||||||||||||||||||||
Tier 1 Capital | $ | 654,223 | $ | 644,988 | $ | 454,243 | $ | 358,834 | $ | 356,307 | $ | 654,223 | $ | 356,307 | ||||||||||||||
Tier 1 Ratio | 16.74 | % | 16.06 | % | 14.77 | % | 12.16 | % | 12.38 | % | 16.74 | % | 12.38 | % | ||||||||||||||
Total Capital | $ | 703,323 | $ | 695,420 | $ | 492,696 | $ | 395,271 | $ | 392,180 | $ | 703,323 | $ | 392,180 | ||||||||||||||
Total Capital Ratio | 18.00 | % | 17.32 | % | 16.02 | % | 13.39 | % | 13.62 | % | 18.00 | % | 13.62 | % | ||||||||||||||
Total Capital in excess of minimum requirement | $ | 390,665 | $ | 374,219 | $ | 246,613 | $ | 159,133 | $ | 161,896 | $ | 390,665 | $ | 161,896 | ||||||||||||||
Total Risk-Weighted Assets | $ | 3,908,225 | $ | 4,015,018 | $ | 3,076,042 | $ | 2,951,721 | $ | 2,878,548 | $ | 3,908,225 | $ | 2,878,548 | ||||||||||||||
Leverage Ratio | 9.57 | % | 14.41 | % | 12.02 | % | 9.51 | % | 10.00 | % | 9.57 | % | 10.00 | % | ||||||||||||||
OTHER CAPITAL RATIOS | ||||||||||||||||||||||||||||
Ending shareholders' equity to ending assets | 10.11 | % | 9.24 | % | 11.81 | % | 9.29 | % | 9.42 | % | 10.11 | % | 9.42 | % | ||||||||||||||
Ending common shareholders' equity to ending assets | 8.92 | % | 8.16 | % | 9.74 | % | 7.24 | % | 7.31 | % | 8.92 | % | 7.31 | % | ||||||||||||||
Ending tangible shareholders' equity to ending tangible assets | 9.30 | % | 8.48 | % | 11.14 | % | 8.60 | % | 8.70 | % | 9.30 | % | 8.70 | % | ||||||||||||||
Ending tangible common shareholders' equity to ending tangible assets | 8.10 | % | 7.40 | % | 9.06 | % | 6.54 | % | 6.57 | % | 8.10 | % | 6.57 | % | ||||||||||||||
Average shareholders' equity to average assets | 9.90 | % | 10.66 | % | 10.04 | % | 9.29 | % | 8.04 | % | 9.99 | % | 8.16 | % | ||||||||||||||
Average common shareholders' equity to average assets | 8.76 | % | 8.93 | % | 7.98 | % | 7.22 | % | 7.82 | % | 8.34 | % | 8.11 | % | ||||||||||||||
Average tangible shareholders' equity to average tangible assets | 9.12 | % | 9.46 | % | 9.35 | % | 8.59 | % | 7.28 | % | 8.85 | % | 7.37 | % | ||||||||||||||
Average tangible common shareholders' equity to average tangible assets | 7.96 | % | 7.70 | % | 7.27 | % | 6.51 | % | 7.05 | % | 7.18 | % | 7.31 | % |
- 23 -