CINCINNATI, Jan. 28 /PRNewswire-FirstCall/ -- -- Full-year 2008 net income of $23.0 million and earnings per diluted share of $0.61
-- Fourth quarter 2008 net income of $2.1 million and earnings per diluted share of $0.06
-- Increased the allowance for loan and lease losses to 1.34% of total loans at December 31, 2008 from 1.14% at September 30, 2008
-- Allowance for loan and lease losses was 197% of nonperforming loans at December 31, 2008 -- Capital and liquidity remain strong -- Total regulatory capital exceeded the minimum required by $161.9 million -- Continued growth in commercial lending -- Fourth quarter 2008 average commercial loans increased 11% on an annualized basis from the third quarter of 2008 -- Full-year 2008 average commercial loans increased 15% from the full-year of 2007
-- Quarterly common dividend reduced to $0.10 per share effective in the second quarter of 2009
First Financial Bancorp announced today results for the full-year and fourth quarter of 2008. For the full-year of 2008, net income was $23.0 million and earnings per diluted share were $0.61, compared with net income of $35.7 million and earnings per diluted share of $0.93 for the full- year of 2007. For the fourth quarter of 2008, net income was $2.1 million and earnings per diluted share were $0.06, compared with net income of $10.7 million and earnings per diluted share of $0.29 for the fourth quarter of 2007, and net income of $5.7 million and earnings per diluted share of $0.15 for the third quarter of 2008.
The following table presents First Financial's return on average assets and return on average shareholders' equity for the third and fourth quarters of 2008, the fourth quarter of 2007, and the full-years of 2008 and 2007.
Table I Quarter Year 4Q-08 3Q-08 4Q-07 2008 2007 Return on Average Assets 0.23% 0.66% 1.27% 0.67% 1.08% Return on Average Shareholders' Equity 2.89% 8.24% 15.37% 8.21% 12.73%
Fourth quarter 2008 results, when compared with the third quarter of 2008, were impacted by the previously announced increase in the loan loss reserve and a higher level of net charge-offs due to the rapid deterioration in the overall economic environment. The financial impact of these items was a decrease to fourth quarter 2008 net income and earnings per diluted share on an after-tax basis of $4.9 million, or $0.13 per share, respectively.
The following table presents a summary of significant items impacting results for the third and fourth quarters and full-years of 2008 and 2007.
Table II ($ in thousands, excluding per share data) 2008 2007 Full-Year 4Q 3Q Full-Year 4Q 3Q Loss on FHLMC shares* $(3,738) $(137) $(3,400) $- $- $- Increase in Loan Loss Reserve & Higher Charge-offs (7,539) (7,539) - - - - Gain on Sale of Merchant Payment Processing Portfolio - - - 5,501 5,501 - Pension Settlement Charges - - - (2,222) (2,222) - Gains on Sales of Investment Securities (VISA 2008; MasterCard 2007) 1,585 - - 367 - 367 Gain on Sale of Mortgage Servicing Rights - - - 1,061 - - Visa Member Litigation Charges - - - (461) (461) - Impact to Pre- Tax Net Income $(9,692) $(7,676) $(3,400) $4,246 $2,818 $367 After-Tax Impact to Earnings Per Diluted Share $(0.17) $(0.13) $(0.06) $0.07 $0.05 $0.01 *Loss related to the company's investment in 200,000 Federal Home Loan Mortgage Corporation (FHLMC) perpetual preferred series V shares.
Commenting on the company's results, Claude Davis, First Financial Bancorp's president and chief executive officer said, "We are taking a number of steps to better position ourselves for these uncertain economic conditions. Throughout 2008, the company grew commercial loans, controlled its expenses, and maintained strong capital and liquidity levels. We are carefully managing the company for continued long-term success and making the appropriate decisions to support continued client growth in a difficult economy. Our associates are to be commended for their dedication and hard work. As a result of their efforts we were able to profitably manage the company during these unprecedented times and deliver to our clients' products and services from a bank they know they can depend on."
"Given the ongoing decline in economic conditions, and in a continued effort to further strengthen our capital level, the board of directors has made the decision to reduce the quarterly cash dividend to common shareholders, effective with the next quarterly dividend payment," added Mr. Davis. "The expected quarterly cash dividend will be reduced to $0.10 per share from the previous $0.17 per share. We believe that this action is consistent with our other capital management strategies and will further boost our already strong capital levels. While it is difficult to predict when stability will return to the U.S. economy, we believe that our excess risk- based capital position will allow the company to successfully weather the economic challenges that lie ahead, and still allow us to take advantage of growth opportunities."
For additional information on First Financial's comparable financial results, please refer to the discussions that follow detailing revenue and expense fluctuations.
DETAILS OF RESULTS
Unless otherwise noted, all amounts discussed in this earnings release are pre-tax except net income and per-share data which are presented after-tax. Percentage changes are not annualized unless specifically noted.
CREDIT QUALITY The following table presents First Financial's key credit quality metrics. Table III Three Months Ended Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2008 2008 2008 2008 2007 Total Nonperforming Loans $18,185 $14,038 $15,366 $15,253 $14,680 Total Nonperforming Assets $22,213 $18,648 $19,129 $17,621 $17,316 Nonperforming Assets as a % of: Period-End Loans, Plus Other Real Estate Owned 0.83% 0.70% 0.71% 0.67% 0.67% Total Assets 0.60% 0.53% 0.55% 0.53% 0.51% Nonperforming Loans as a % of Total Loans 0.68% 0.53% 0.57% 0.58% 0.56% Allowance for Loan & Lease Losses $35,873 $30,353 $29,580 $29,718 $29,057 Allowance for Loan & Lease Losses as a % of: Period-End Loans 1.34% 1.14% 1.11% 1.14% 1.12% Nonaccrual Loans 199.5% 219.5% 199.7% 202.3% 205.9% Nonperforming Loans 197.3% 216.2% 192.5% 194.8% 197.9% Total Net Charge-Offs $4,955 $2,446 $2,631 $2,652 $1,719 Annualized Net-Charge- Offs as a % of Average Loans & Leases 0.73% 0.36% 0.40% 0.40% 0.26% Table III Twelve Months Ended Dec. 31, Dec. 31, 2008 2007 Total Nonperforming Loans $18,185 $14,680 Total Nonperforming Assets $22,213 $17,316 Nonperforming Assets as a % of: Period-End Loans, Plus Other Real Estate Owned 0.83% 0.67% Total Assets 0.60% 0.51% Nonperforming Loans as a % of Total Loans 0.68% 0.56% Allowance for Loan & Lease Losses $35,873 $29,057 Allowance for Loan & Lease Losses as a % of: Period-End Loans 1.34% 1.12% Nonaccrual Loans 199.5% 205.9% Nonperforming Loans 197.3% 197.9% Total Net Charge-Offs $12,594 $5,981 Annualized Net-Charge- Offs as a % of Average Loans & Leases 0.47% 0.24%
First Financial's credit quality trends were relatively stable and within their expected range throughout most of 2008. However, toward the end of the year, the company began to experience some deterioration within its commercial lending portfolios as borrowers came under increased stress due to the continued economic downturn, eroding real estate values and increasing levels of unemployment. During the fourth quarter, the company announced its intentions to charge-off two large and previously identified credits from its commercial and commercial real estate lending portfolios. This action resulted in a $2.4 million increase to net charge-offs compared with the third quarter 2008 level. These two credits were 9 basis points of the full-year 2008 net charge-offs to average loans and leases ratio of 47 basis points.
Also consistent with the deteriorating economic conditions, the resolution of problem credits across all lending portfolios has begun to take longer than previously experienced, resulting in nonperforming loans increasing at a faster pace than historical levels. At the end of the fourth quarter of 2008, total nonperforming loans increased $4.1 million to $18.2 million, or 0.68% of total loans, compared with $14.0 million, or 0.53% of total loans at the end of the third quarter of 2008.
Although credit costs trended higher during the fourth quarter of 2008, coverage ratios remained strong. The allowance for loan and lease losses as a percent of nonperforming loans was 197.3% at the end of the fourth quarter of 2008, compared with 216.2% at the end of the third quarter of 2008.
First Financial believes that its fourth quarter and full-year 2008 credit costs, although higher than previous levels, are still favorable relative to industry and peer levels.
Total loans 30 to 89 days past due at December 31, 2008 were $22.6 million, or 0.84% of period end loans, compared with $22.3 million, or 0.84% at September 30, 2008, and $26.5 million, or 1.02% at December 31, 2007. Management closely monitors these trends and ratios and currently considers the level of delinquent loans consistent with its expectation of the total loan portfolio's behavior.
The allowance for loan and lease losses grew a net $5.5 million from the third quarter level. This increase reflects the company's recognition of a continuing decline in economic conditions and the uncertainty surrounding the timing of an economic recovery. The allowance for loan and lease losses as a percent of period-end loans is based on the estimated potential losses inherent in the loan portfolio in today's economic environment. The company believes that the $35.9 million allowance for loan and lease losses at December 31, 2008 or 1.34% of period end loans is adequate to absorb probable credit losses inherent in its lending portfolio.
Other real estate owned decreased $0.6 million to $4.0 million at December 31, 2008 from $4.6 million at September 30, 2008, and increased $1.4 million from $2.6 million at December 31, 2007. The linked quarter decrease was primarily as a result of net dispositions and valuation adjustments during the quarter, and the year over year increase was primarily a result of net additions of both commercial and residential real estate during the year.
For further details on the quarter-over-quarter and year-to-date changes in credit quality, please see the attached Credit Quality schedule.
CAPITAL MANAGEMENT
All regulatory capital ratios exceeded the amounts necessary to be classified as "well-capitalized" at December 31, 2008. In addition, total regulatory capital exceeded the "minimum" requirement by approximately $161.9 million, on a consolidated basis. The following table presents the regulatory capital ratios for First Financial Bancorp and its subsidiary, First Financial Bank at December 31, 2008.
Table IV Regulatory "well- capitalized" FFBC Bank minimum Leverage Ratio 10.00% 8.77% 5% Tier 1 Capital Ratio 12.38% 10.86% 6% Total Risk-Based Capital Ratio 13.62% 12.37% 10% EOP Tangible Equity/ EOP Tangible Assets 8.70% N/A N/A EOP Tangible Common Equity/ EOP Tangible Assets 6.52% N/A N/A N/A = not applicable
As previously discussed, the board of directors has made the decision to reduce the quarterly cash dividend to common shareholders effective with the next quarterly dividend. The expected quarterly cash dividend will be reduced to $0.10 per share from the previous $0.17 per share. The board has determined that a dividend payout range of between 40% and 60% of earnings available to common shareholders is appropriate as a long-term target.
U.S. TREASURY CAPITAL PURCHASE PROGRAM
On December 23, 2008, First Financial completed the sale of $80.0 million in perpetual preferred securities to the U.S. Treasury under its Capital Purchase Program (CPP), as a component of its Troubled Asset Relief Program (TARP), representing approximately 3.0% of risk-weighted assets at September 30, 2008. First Financial will begin reporting the use of this capital in both its quarterly earnings releases and quarterly and annual SEC filings.
Use of Capital
First Financial has both a short and long-term plan for utilization of the CPP proceeds. In anticipation of the receipt of the $80.0 million in capital, the company began purchasing agency-guaranteed, mortgage-backed securities. The investment portfolio specifically designated as the CPP Investment Portfolio totaled approximately $121.9 million at December 31, 2008. The ratio of investments to capital, or leverage on the CPP capital, was 1.5 times the proceeds received. The company has established an internal maximum on the CPP Investment Portfolio not to exceed 5 times. Additional information on these investment securities is provided within the Investment section of this news release.
It is expected that as additional lending opportunities become available, the cash flows from the CPP Investment Portfolio will provide sufficient liquidity and capital support for redeployment into loans.
The company expects that earnings from the CPP Investment Portfolio will have a positive effect on net interest income and should exceed the quarterly dividends payable to the U.S. Treasury on its investment in the preferred shares.
Although loan growth remained relatively strong throughout 2008, First Financial is evaluating several ways to increase lending volume consistent with the intent of the CPP program. The company is also working with its third-party servicer for residential mortgage loans to evaluate appropriate foreclosure modification solutions. Additional details on these programs will be disclosed as they are implemented.
Funding
Funding for the CPP Investment Portfolio is being evaluated in order to take advantage of the low interest rate environment. While the goal is to achieve duration-matched funding in the near future, the portfolio was funded with short-term borrowings as of December 31, 2008.
NET INTEREST INCOME & NET INTEREST MARGIN Table V Quarter Year 4Q-08 3Q-08 4Q-07 2008 2007 Net Interest Income $30,129 $29,410 $29,079 $116,202 $118,500 Net Interest Margin 3.67% 3.68% 3.79% 3.71% 3.94% Net Interest Margin (fully tax equivalent) 3.71% 3.73% 3.86% 3.77% 4.01%
Since September 2007, the Federal Reserve has decreased the targeted federal funds rate 10 times from 5.25% to 0.25%, which has led to a decline in most market interest rates and negatively impacted the company's asset sensitive balance sheet. The net interest margin began to stabilize in the last half of 2008. However, as a result of further interest rate reductions late in the year, the net interest margin is expected to experience continued downward pressure.
Full-year 2008 net interest income declined $2.3 million from the full- year of 2007, while fourth quarter 2008 net interest income increased $1.1 million from the fourth quarter of 2007, and $0.7 million from the third quarter of 2008. Increases in the end of period and average commercial lending portfolios combined with growth in the investment securities portfolio have partially offset the effects of market interest rate declines on net interest income. Although average total deposits declined throughout the year, a mix shift in deposits from higher-cost certificates of deposits to lower-cost transaction-based accounts has had a positive impact on the net interest margin.
For further details on the quarter-over-quarter and year-to-date changes in the net interest margin, please see the attached Net Interest Margin Rate / Volume Analysis
NONINTEREST INCOME
-- Full-year 2008 noninterest income was $51.7 million, compared with $63.6 million for the full-year of 2007.
-- Fourth quarter 2008 noninterest income was $12.6 million, compared with $20.3 million in the fourth quarter of 2007, and $10.5 million in the third quarter of 2008.
The following table presents a summary of significant items impacting noninterest income for the periods mentioned above.
Table VI Quarter Year 4Q-08 3Q-08 4Q-07 2008 2007 Loss on FHLMC shares $(137) $(3,400) $ - $(3,738) $ - Gain on Sale of Merchant Payment Processing Portfolio - - 5,501 - 5,501 Gain on Sale of Mortgage Servicing Rights - - - - 1,061 Gains on Sales of Investment Securities (VISA 2008; MasterCard 2007) - - - 1,585 367 Impact to Noninterest Income $(137) $(3,400) $5,501 $(2,153) $6,929
Full-year 2008 noninterest income declined $11.8 million from 2007's comparable period. Excluding the significant items mentioned above, full-year 2008 noninterest income declined $2.8 million from the full-year of 2007. This decline was primarily due to $1.1 million in lower service charges on deposit accounts, and $1.0 million in lower trust and wealth management fees, as well as lower earnings on bank-owned life insurance.
Fourth quarter 2008 noninterest income declined $7.6 million from the fourth quarter of 2007, and increased $2.2 million from the third quarter of 2008. Excluding the significant items mentioned above, fourth quarter 2008 noninterest income declined $2.0 million from the fourth quarter of 2007 and $1.1 million from the third quarter of 2008. The declines from both periods were primarily due to lower service charges on deposit accounts, which declined $0.6 million from both the fourth quarter of 2007 and the third quarter of 2008, and lower trust and wealth management fees, which declined $1.2 million from the fourth quarter of 2007, and $0.6 million from the third quarter of 2008.
The company believes that the economic downturn, which has taken its toll on the spending habits of U.S. consumers and negatively impacted U.S. retail sales for six consecutive months, has also negatively affected First Financial's client transaction volumes and led to lower deposit service charges both on a linked-quarter and year-over-year basis. The declines related to trust and wealth management fees are attributable to decreases in investment advisory and trust fees that are a result of lower asset valuations given overall market declines. Since June 30, 2008, assets under management by the company's wealth management division have declined by approximately $344.0 million or 17.0% to $1.7 billion at December 31, 2008, primarily as a result of equity market value declines.
NONINTEREST EXPENSE
-- Full-year 2008 noninterest expense was $115.2 million, compared with $120.7 million for the full-year of 2007.
-- Fourth quarter 2008 noninterest expense was $29.8 million, compared with $31.4 million in the fourth quarter of 2007, and $28.3 million in the third quarter of 2008.
The following table presents a summary of significant items impacting noninterest expense for the fourth quarter of 2007 and the full-years of 2007 and 2008. There were no significant items impacting noninterest expense during the third and fourth quarters of 2008.
Table VII Quarter Year 4Q-07 2008 2007 Pension Settlement Charges $2,222 $ - $2,222 Visa Member Litigation Charges 461 - 461 Liability for Retiree Medical Benefits - (1,285) - Severance Costs - - 1,620 (Gain) Loss on Properties & Fixed Assets (227) - (575) Impact to Noninterest Expense $2,456 $(1,285) $3,728
Full-year 2008 noninterest expense declined $5.6 million from the full- year of 2007. Excluding the significant items mentioned above, full-year of 2008 noninterest expense declined $0.6 million from the full-year of 2007. This decline was primarily attributable to lower salaries and benefits, as well as a decrease in incentive-based compensation.
Fourth quarter 2008 noninterest expense declined $1.5 million from the fourth quarter of 2007, and increased $1.5 million from the third quarter of 2008. Excluding the significant items mentioned above, fourth quarter 2008 noninterest expense increased $0.9 million from the fourth quarter of 2007. This increase was attributable to higher marketing costs and retirement plan expenses that were partially offset by lower incentive compensation, communications and professional service expenses during the quarter. The increase from the third quarter was due to higher marketing, and seasonal increases in both healthcare and retirement plan expenses, as well as a loss on the disposition of other real estate.
INCOME TAXES
Income tax expense was $10.4 million and the effective tax rate was 31.2% for the full-year of 2008, compared with income tax expense of $18.0 million and an effective tax rate of 33.5% for the full-year of 2007. Income tax expense was $0.4 million and the effective tax rate was 15.1% for the fourth quarter of 2008, compared with income tax expense of $5.6 million and an effective tax rate of 34.5% for the fourth quarter of 2007. The lower effective tax rate for the fourth quarter and full-year of 2008 was due to the marginal impact of lower pre-tax earnings.
LOANS
In the third and fourth quarters of 2008, First Financial took steps to further manage the risk profile of its balance sheet by securitizing a total of $89.0 million in residential mortgage loans into agency guaranteed, mortgage-backed securities collateralized by those loans. The fourth quarter securitization consisted of $30.5 million in loans and the third quarter securitization consisted of $58.5 million in loans. These securitizations resulted in a reduction in credit risk on the balance sheet and a lower regulatory risk weighting for those assets. The assets remain on the balance sheet, but are now accounted for as investment securities available-for-sale rather than residential real estate loans.
INVESTMENTS
During the second quarter of 2008, First Financial began to increase the size of its investment portfolio. Since the end of the first quarter, the portfolio has grown approximately $307.8 million on a net basis. Approximately $194.2 million of securities were added during the fourth quarter of 2008, including $30.5 million in residential mortgage loans that were securitized and are now included in the investment securities portfolio. The portfolio selection criteria will continue to avoid securities that are backed by sub-prime assets and also those containing assets that would give rise to material geographic concentrations. At December 31, 2008, First Financial held approximately 82.7% of its available-for-sale securities in residential mortgage related investments, substantially all of which are held in highly-rated, agency-backed pass-through instruments.
Securities available-for-sale at December 31, 2008 were $659.8, compared with $306.9 million at December 31, 2007, and $492.6 million at September 30, 2008. The combined investment portfolio was 18.7% and 10.3% of total assets at December 31, 2008 and 2007, respectively, and 15.2% of total assets at September 30, 2008.
The company recorded, as a component of equity in accumulated other comprehensive income, an unrealized after-tax gain in the investment portfolio of approximately $6.9 million at December 31, 2008, compared with an unrealized gain of $0.5 million at September 30, 2008, and an unrealized gain of $0.3 million at December 31, 2007.
The following table presents a summary of the total investment portfolio at December 31, 2008.
Table VIII 12/31/ 2008 Base % of Book Book Book Market Gain/ Total Value Yield Price Value (Loss) Agency's 6.7% $46,681 5.33 99.74 103.58 $1,731 CMO's (Agency) 19.4% 134,353 4.96 100.42 101.85 1,882 CMO's (Private) 0.0% 104 3.36 100.00 99.83 - MBS's (Agency) 63.3% 438,249 5.10 100.66 102.37 7,292 Subtotal 89.4% 619,387 5.09 100.54 102.34 $10,905 Municipal 6.0% $41,638 7.19 99.32 100.14 $344 Other * 4.6% 31,673 5.01 100.86 100.32 (169) Subtotal 10.6% $73,311 6.25 99.98 100.22 $175 Total Investment Portfolio 100.0% $692,698 5.21 100.48 102.12 $11,080 Net Unrealized Gain/(Loss) $11,080 Aggregate Gains $11,250 Aggregate Losses $(170) Net Unrealized Gain/(Loss) % of Book Value 1.60% * Other includes $28.0 million of regulatory stock
In the first quarter of 2008, First Financial adopted FASB Statement No. 159 (SFAS No. 159), "The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment of FASB Statement No. 115." The company applied the fair value option to its equity securities of government sponsored entities ("GSE"), specifically 200,000 FHLMC perpetual preferred series V shares; and these shares are classified as trading assets. For the full-year of 2008, the company recorded a $3.7 million pre-tax loss related to its investment in these securities, with $3.4 million recorded in the third quarter of 2008. This loss was a result of the decline in market value of the shares following the September 7, 2008 announcement by the U.S. Treasury, the Federal Reserve, and the Federal Housing Finance Agency (FHFA), that the FHFA was placing FHLMC under conservatorship and would eliminate the dividends on its common and preferred stock. The fair value accounting treatment discussed above requires First Financial to recognize in its income statement both the market value increases and decreases in future periods.
DEPOSITS Full-Year 2008 versus Full-Year 2007 -- Average total deposits declined $31.5 million, or 1.1%. -- Average transaction and savings deposits increased $17.2 million, or 1.1% -- Average time deposits declined $48.7 million or, 4.0% Fourth Quarter 2008 versus Fourth Quarter 2007 -- Average total deposits declined $81.0 million, or 2.8%. -- Average transaction and savings deposits increased $17.8 million, or 1.1% -- Average time deposits declined $98.8 million, or 7.9% Fourth Quarter 2008 versus Third Quarter 2008 -- Average total deposits declined $2.9 million, or 0.1% on an annualized basis. -- Average transaction and savings deposits increased $3.8 million, or 0.2% on an annualized basis. -- Average time deposits declined $6.7 million, or 0.6% on an annualized basis.
Average total deposits declined on a linked-quarter and year-over-year basis. Contributing to these declines was a decrease in average total interest-bearing deposits primarily due to the planned runoff of time deposits. Average transaction and savings deposits increased on a linked- quarter and year-over-year basis primarily due to growth in both business and public fund balances. During 2008, the company initiated a deposit pricing strategy aimed at maximizing the net interest margin in a very competitive deposit gathering landscape. The strategy has been successful as outflows of time deposits have been replaced with less expensive wholesale funding that was used to help fund asset generation.
Toward the end of the third quarter of 2008, First Financial instituted pricing initiatives designed to grow and retain retail deposits as well as to manage its overall asset/liability position. The company also extended the terms of CD offerings with maturities of one year and beyond to secure long- term funding at attractive rates, and continues to evaluate its key customer and market demographics to develop a combination of strategies to help increase core deposits.
Conference Call & Webcast
As previously announced, a conference call and webcast to discuss First Financial's fourth quarter and full-year 2008 financial and operational results will be held on Thursday, January 29, 2009, at 9:00 a.m. ET, with Claude E. Davis, President and Chief Executive Officer, and J. Franklin Hall, Executive Vice President and Chief Financial Officer. To access the conference call, dial 800-860-2442 (passcode not required). The webcast will be available at the Investor Relations section of First Financial's website (http://www.bankatfirst.com/). Participants should join the live conference call and webcast 5 to 10 minutes before its scheduled start. A replay of the call and webcast will be available approximately one hour after the live call has ended. To access the replay, dial 877-344-7529 (passcode 427 052).
Forward-Looking Statements
This news release should be read in conjunction with the consolidated financial statements, notes and tables in First Financial Bancorp's most recent Form 10-Q filing dated September 30, 2008, and its Annual Report on Form 10-K for the year ended December 31, 2007. Management's analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risk and uncertainties that may cause actual results to differ materially. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, management's ability to effectively execute its business plan; the risk that the strength of the United States economy in general and the strength of the local economies in which First Financial conducts operations may be different from expected, resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on First Financial's loan portfolio and allowance for loan and lease losses; the ability of financial institutions to access sources of liquidity at a reasonable cost; the effects of and changes in policies and laws of regulatory agencies, inflation, and interest rates; technology changes; mergers and acquisitions; the effect of changes in accounting policies and practices; adverse changes in the securities markets; the cost and effects of litigation and of unexpected or adverse outcomes in such litigation; and First Financial's success at managing the risks involved in the foregoing. For further discussion of certain factors that may cause such forward-looking statements to differ materially from actual results, refer to the 2007 Form 10-K and other public documents filed with the Securities and Exchange Commission (SEC). These documents are available at no cost within the investor relations section of First Financial's website at http://www.bankatfirst.com/ and on the SEC's website at http://www.sec.gov/. Additional information will also be set forth in our annual report on Form 10-K for the year ended December 31, 2008, which will be filed with the SEC no later than March 16, 2009.
About First Financial Bancorp
First Financial Bancorp is a Cincinnati, Ohio based bank holding company with $3.7 billion in assets. Its banking subsidiary, First Financial Bank, N.A., founded in 1863, provides retail and commercial banking products and services, and investment and insurance products through its 81 retail banking locations in Ohio, Kentucky and Indiana. The bank's wealth management division, First Financial Wealth Resource Group, provides investment management, traditional trust, brokerage, private banking, and insurance services, and has approximately $1.7 billion in assets under management. Additional information about the company, including its products, services, and banking locations, is available at http://www.bankatfirst.com/.
