8K Earnings Release 3Q12




 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 

 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 25, 2012
 

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


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

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02    Results of Operations and Financial Condition.

On October 25, 2012, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the first nine months and third quarter of 2012. A copy of the earnings press release is attached as Exhibit 99.1.

The earnings press release includes some financial measures outside of generally accepted accounting principles (GAAP), referred to as non-GAAP financial measures. The first non-GAAP financial measure, Net interest margin (fully tax equivalent), appears in the table entitled “Consolidated Financial Highlights” under the section “Key Financial Ratios.” It also appears in the table entitled “Consolidated Quarterly Statements of Income” under “Additional Data.” The second non-GAAP financial measure, Net interest income-tax equivalent, appears in the tables entitled “Additional Data” at the bottom of the “Consolidated Quarterly Statements of Income” page. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
 
Below is a table showing “net interest income” calculated and presented in accordance with GAAP and the adjustments made to arrive at the non-GAAP financial measure “net interest income - tax equivalent.” The table also shows “net interest margin” calculated and presented in accordance with GAAP and the method used to arrive at the non-GAAP financial measure “net interest margin (fully tax equivalent).”


 
Three Months Ended
Nine Months Ended
 
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
 
Sep. 30,
(Dollars in thousands)
2012
2012
2012
2011
2011
 
2012
2011
Net interest income
$
59,846

$
64,830

$
66,689

$
65,476

$
65,218

 
$
191,365

$
198,420

Tax equivalent adjustment
255

216

218

265

236

 
689

714

   Net interest income - tax equivalent
$
60,101

$
65,046

$
66,907

$
65,741

$
65,454

 
$
192,054

$
199,134

 
 
 
 
 
 
 
 
 
Average earning assets
$
5,658,379

$
5,813,267

$
5,950,151

$
6,014,136

$
5,687,036

 
$
5,806,722

$
5,730,642

 
 
 
 
 
 
 
 
 
Net interest margin*
4.21
%
4.49
%
4.51
%
4.32
%
4.55
%
 
4.40
%
4.63
%
Net interest margin (fully tax equivalent)*
4.23
%
4.50
%
4.52
%
4.34
%
4.57
%
 
4.42
%
4.65
%
 
 
 
 
 
 
 
 
 
* 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 shareholders' equity; (2) Ending tangible shareholders' equity as a percent of ending tangible assets; (3) Ending tangible shareholders' equity as a percent of risk-weighted assets; (4) Average tangible shareholders' equity as a percent of average tangible assets; and (5) Tangible book value per share. The Ending tangible shareholders' equity as a percent of ending tangible assets and Average tangible shareholders' equity as a percent of average tangible assets are also shown in the “Regulatory Capital” section of the “Capital Adequacy” page in the earnings release. The following table provides a reconciliation of these ratios to the corresponding GAAP components. The Company considers these critical metrics with which to analyze banks. The ratios have been included in the earnings press release to facilitate a better understanding of the Company's capital structure and financial condition.





 
Three Months Ended
Nine Months Ended
 
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
 
Sep. 30,
 
2012
2012
2012
2011
2011
 
2012
2011
 
(Dollars in thousands, except per share data)
 
 
 
Net income (a)
$
16,242

$
17,802

$
16,994

$
17,941

$
15,618

 
$
51,038

$
48,798

 
 
 
 
 
 
 
 
 
Average total shareholders' equity
$
716,797

$
717,111

$
706,547

$
719,964

$
725,809

 
$
713,497

$
709,653

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(68,922
)
 
(95,050
)
(68,922
)
Intangible assets
(8,327
)
(9,195
)
(10,193
)
(10,844
)
(8,436
)
 
(8,327
)
(8,436
)
Average tangible equity (b)
613,420

612,866

601,304

614,070

648,451

 
610,120

632,295

 
 
 
 
 
 
 
 
 
Total shareholders' equity
715,966

716,788

714,693

712,221

727,132

 
715,966

727,132

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(68,922
)
 
(95,050
)
(68,922
)
Intangible assets
(8,327
)
(9,195
)
(10,193
)
(10,844
)
(8,436
)
 
(8,327
)
(8,436
)
Ending tangible equity (c)
612,589

612,543

609,450

606,327

649,774

 
612,589

649,774

 
 
 
 
 
 
 
 
 
Total assets
6,235,087

6,282,677

6,416,568

6,671,511

6,337,729

 
6,235,087

6,337,729

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(68,922
)
 
(95,050
)
(68,922
)
Intangible assets
(8,327
)
(9,195
)
(10,193
)
(10,844
)
(8,436
)
 
(8,327
)
(8,436
)
Ending tangible assets (d)
6,131,710

6,178,432

6,311,325

6,565,617

6,260,371

 
6,131,710

6,260,371

 
 
 
 
 
 
 
 
 
Risk-weighted assets (e)
3,789,957

3,737,920

3,711,053

3,645,403

3,518,026

 
3,789,957

3,518,026

 
 
 
 
 
 
 
 
 
Total average assets
6,166,667

6,334,973

6,478,931

6,515,756

6,136,815

 
6,326,272

6,207,184

Less:
 
 
 
 
 
 
 
 
Goodwill
(95,050
)
(95,050
)
(95,050
)
(95,050
)
(68,922
)
 
(95,050
)
(68,922
)
Intangible assets
(8,327
)
(9,195
)
(10,193
)
(10,844
)
(8,436
)
 
(8,327
)
(8,436
)
Average tangible assets (f)
6,063,290

6,230,728

6,373,688

6,409,862

6,059,457

 
6,222,895

6,129,826

 
 
 
 
 
 
 
 
 
Ending common shares outstanding (g)
58,510,916

58,513,393

58,539,458

58,267,054

58,256,136

 
58,510,916

58,256,136

 
 
 
 
 
 
 
 
 
Ratios
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity (a)/(b)
10.53
%
11.68
%
11.37
%
11.59
%
9.56
%
 
11.17
%
10.32
%
Ending tangible shareholders' equity as a percent of:
 
 
 
 
 
 
 
Ending tangible assets (c)/(d)
9.99
%
9.91
%
9.66
%
9.23
%
10.38
%
 
9.99
%
10.38
%
Risk-weighted assets (b)/(e)
16.16
%
16.39
%
16.42
%
16.63
%
18.47
%
 
16.16
%
18.47
%
Average tangible shareholders' equity of average tangible assets (b)/(f)
10.12
%
9.84
%
9.43
%
9.58
%
10.70
%
 
9.80
%
10.32
%
Tangible book value per share (c)/(g)
$
10.47

$
10.47

$
10.41

$
10.41

$
11.15

 
$
10.47

$
11.15


First Financial Bancorp also provided electronic presentation slides on its web site used in connection with the earnings conference call. A copy of the electronic presentation slides is included in this Report as Exhibit 99.2.








Item 9.01    Exhibits.

(d)    Exhibits:

The following exhibits shall not be deemed to be “filed” for purposes of the Securities Act.

99.1    First Financial Bancorp. Press Release dated October 25, 2012 - Furnished.
99.2    First Financial Bancorp. October 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:
October 25, 2012
 

                    








Form 8-K                                First Financial Bancorp.

Exhibit Index
Exhibit No.        Description

99.1            First Financial Bancorp. Press Release dated October 25, 2012.
99.2            First Financial Bancorp. October 26, 2012 Earnings Call slides.