FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1

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EXHIBIT 99.1

First Financial Bancorp Reports First Quarter 2011 Financial Results

Cincinnati, Ohio – April 27, 2011 – First Financial Bancorp (Nasdaq: FFBC) (“First Financial” or the “Company”) announced today financial and operational results for the first quarter 2011.

First quarter 2011 net income and net income available to common shareholders were $17.2 million and earnings per diluted common share were $0.29. This compares with fourth quarter 2010 net income and net income available to common shareholders of $14.3 million and earnings per diluted common share of $0.24 and first quarter 2010 net income of $11.6 million, net income available to common shareholders of $9.7 million and earnings per diluted common share of $0.17.

82nd consecutive quarter of profitability

Continued strong performance

Quarterly return on average assets of 1.11%

Quarterly return on risk-weighted assets of 2.07%

Quarterly return on average shareholders’ equity of 10.04%

Significant core deposit growth

Strategic commercial and retail transaction and savings deposits increased $109.1 million during the quarter

20.2% growth in average savings account balance compared to the first quarter 2010

Capital ratios remain strong as a result of earnings power

Tangible common equity to tangible assets of 10.40%

Tier 1 capital ratio of 20.49%

Total risk-based capital of 21.77%

Quarterly net interest margin increased to 4.73%

Improved cash flow expectations on acquired loans continues to enhance yield on portfolio

$161.1 million of liquidity redeployed in investment securities

Cost of deposits declined 9 bps due to continued emphasis on core transaction and savings accounts

Continued improvement in credit metrics

Net loan charge-offs declined to $4.2 million from $9.8 million, or 57%, compared to the fourth quarter 2010

Total classified assets decreased $16.4 million, or 8.1%, compared to the linked quarter

Delinquent loans 30-to-89 days past due declined 8.8% quarter-over-quarter

Balance sheet risk continues to remain low

FDIC loss share coverage on 32.5% of loan portfolio

100% risk-weighted assets continue to represent less than 50% of balance sheet

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Claude Davis, President and Chief Executive Officer, commented, “We are pleased to report another quarter of strong performance, driven by lower credit costs. While the economic environment is still in a state of uncertainty, we began to see positive trends as our levels of classified assets and delinquencies declined and net charge-offs dropped substantially.

“Our core deposit balances continued to grow as a result of the strong sales efforts by our commercial, treasury management and retail teams. We have been successful in building the First Financial brand across our strategic footprint, enabling us to continually shift our deposit mix towards lower cost core transactional and savings accounts as retail and brokered CDs from our FDIC transactions mature. Consequently, our total cost of deposits dropped to 90 bps from 99 bps in the prior quarter and 117 bps in the first quarter 2010.

“Loan demand continued to be low in our strategic markets due to the lingering effects of the recession as average loan balances were essentially flat and we experienced slight quarter-over-quarter period end declines in most product categories. However, we continue to be active in our sales and calling efforts and were encouraged as originations increased toward the end of the first quarter in several categories and our pipeline across all product lines is growing.

“One of our strategic goals for 2011 is to continue our focus on improving efficiency and managing costs while still providing the high level of service First Financial clients have come to expect. During the quarter, we completed our previously announced exit of the Michigan and Louisville, Kentucky markets involving the closure of five banking centers. We also completed a branch consolidation plan under which seven banking centers in our strategic footprint were closed with the client relationships transferred to a nearby location. We have already begun to realize the benefits of cost management initiatives implemented in 2010 as our noninterest expenses, excluding the impact of non-strategic operations and other items not expected to recur, decreased over 15% on an annualized basis compared to the fourth quarter 2010.”

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SECTION I – RESULTS OF OPERATIONS

NET INTEREST INCOME

Net interest income on a fully tax-equivalent basis for the first quarter 2011 was $67.6 million as compared to $68.1 million for the fourth quarter 2010 and $72.2 million as compared to the year-over-year period. During the first quarter 2011, net interest income was flat as the decline in interest income earned on loans resulting from lower covered loan balances was generally offset by an increase in interest earned on investments as a result of redeploying liquidity and lower interest expense on deposits. The decrease compared to the year-over-year quarter was primarily driven by the 24.8% decline in average covered loan balances and the reduced yield on the FDIC indemnification asset, offset partially by lower funding costs as a result of the continued runoff of higher cost time deposits and the prepayment of $232 million of FHLB advances during the third quarter 2010.

NET INTEREST MARGIN

Net interest margin was 4.73% for the first quarter 2011 as compared to 4.65% for the fourth quarter 2010 and 4.89% for the first quarter 2010. As in prior quarters, the net interest margin continued to be negatively impacted by the combination of normal amortization and paydowns in the acquired loan portfolio. However, the Company continued to use a significant portion of its liquidity to purchase investment securities, totaling $161.1 million during the quarter, and realized a full quarter’s impact of $182.4 million of investment purchases that settled during the last two weeks of the fourth quarter 2010, helping to offset the margin decline from lower loan balances. Net interest margin also benefited from an improvement in cash flow expectations related to certain loan pools in the acquired loan portfolio as discussed in more detail in Section II. Additionally, net interest margin was positively impacted by the expected runoff of retail and brokered certificates of deposit and disciplined pricing across all deposit product lines.

NONINTEREST INCOME

The following table presents noninterest income for the three months ended March 31, 2011, December 31, 2010 and March 31, 2010 highlighting the estimated impact of covered loan activity and other transition items on the Company’s reported balance.

Table I
	For the Three Months Ended
	March 31,			December 31,		March 31,
(Dollars in thousands)	2011			2010		2010

Total noninterest income	$	43,658		$	34,534	$	26,935

Significant components of noninterest income

Items likely to recur:

Accelerated discount on covered loans 1, 2		5,783			6,113		6,098
FDIC loss sharing income		23,435			11,306		7,568
Other acquired-non-strategic items		(552	)		527		80
Transition-related items		-			-		366

Items expected not to recur:

FDIC settlement and other items not expected to recur		125			551		-
Total excluding items noted above	$	14,867		$	16,037	$	12,823

1 See Section II for additional information

2 Net of the corresponding valuation adjustment on the FDIC indemnification asset

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During the quarterly periods presented above, excluding reimbursements due from the FDIC resulting from loss share agreements, covered loan activity continued to positively impact noninterest income due to loan sales and prepayments. This activity is discussed in more detail in Section II.

Excluding the items highlighted in Table I, estimated noninterest income earned in the first quarter 2011 was $14.9 million as compared to $16.0 million in the fourth quarter 2010 and $12.8 million in the first quarter 2010. The primary reasons for the decrease related to the linked quarter were lower service charges on deposits, gain on sale from residential mortgage originations, bankcard income and other miscellaneous income; offset partially by higher trust and wealth management fees.

NONINTEREST EXPENSE

The following table presents noninterest expense for the three months ended March 31, 2011, December 31, 2010 and March 31, 2010 including the estimated effect of acquired-non-strategic operations, acquisition-related costs and other transition items.

Table II
	For the Three Months Ended
	March 31,		December 31,		March 31,
(Dollars in thousands)	2011		2010		2010

Total noninterest expense	$	57,790	$	56,290	$	60,261

Significant components of noninterest expense

Items likely to recur:

Acquired-non-strategic operating expenses 1		3,911		4,052		2,201
Transition-related items 1		196		684		6,263
FDIC indemnification support		783		1,160		605
Loss share and covered asset expense		3,171		616		-

Items expected not to recur:

Acquisition-related costs 1		116		412		2,628
Other items not expected to recur		3,962		1,787		1,019
Total excluding items noted above	$	45,651	$	47,579	$	47,545

1 See Section II for additional information

Noninterest expense continued to be affected by items related to the Company’s acquired-non-strategic operations, as discussed in more detail in Section II. Included in other items not expected to recur was a $3.1 million write-down of an OREO property related to the legacy portfolio, which is discussed further in Credit Quality – Excluding Covered Assets below.

Excluding the items highlighted in Table II, estimated noninterest expense in the first quarter 2011 was $45.7 million as compared to $47.6 million in the fourth quarter 2010 and $47.5 million in the first quarter 2010. The decrease in noninterest expenses compared to the linked quarter were primarily driven by lower salaries and benefits, data processing costs, marketing and communications expenses and professional services fees; offset by an increase in occupancy costs and FDIC expense.

While the technology and operational integration of Irwin and Peoples is complete, it is expected that wind-down costs related to acquired subsidiaries will continue through 2011.

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INCOME TAXES

For the first quarter 2011, income tax expense was $9.3 million, resulting in an effective tax rate of 35.2%, compared with income tax expense of $8.1 million and an effective tax rate of 36.2% during the fourth quarter 2010 and $6.3 million and an effective tax rate of 35.0% during the comparable year-over-year period.

CREDIT QUALITY – EXCLUDING COVERED ASSETS

The following table presents certain credit quality metrics related to the Company’s uncovered loan portfolio as of March 31, 2011 and for the trailing four quarters.

Table III
	As of or for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2011			2010			2010			2010			2010

Total nonaccrual loans	$	62,048		$	62,302		$	66,157		$	66,671		$	66,869
Restructured loans		18,532			17,613			13,365			12,752			7,584
Total nonperforming loans		80,580			79,915			79,522			79,423			74,453
Total nonperforming assets		95,533			97,822			97,827			96,241			92,540

Nonperforming assets as a % of:
Period-end loans plus OREO		3.42	%		3.45	%		3.51	%		3.42	%		3.27	%
Total assets		1.51	%		1.57	%		1.59	%		1.46	%		1.41	%

Nonperforming loans as a % of total loans		2.90	%		2.84	%		2.88	%		2.84	%		2.65	%

Provision for loan and lease losses - uncovered	$	647		$	9,741		$	6,287		$	6,158		$	11,378

Allowance for uncovered loan & lease losses	$	53,645		$	57,235		$	57,249		$	57,811		$	56,642

Allowance for loan & lease losses as a % of:
Period-end loans		1.93	%		2.03	%		2.07	%		2.07	%		2.01	%
Nonaccrual loans		86.5	%		91.9	%		86.5	%		86.7	%		84.7	%
Nonperforming loans		66.6	%		71.6	%		72.0	%		72.8	%		76.1	%

Total net charge-offs	$	4,237		$	9,755		$	6,849		$	4,989		$	14,047
Annualized net-charge-offs as a % of average
loans & leases		0.61	%		1.39	%		0.97	%		0.71	%		2.00	%

Net Charge-offs

First quarter 2011 net charge-offs were $4.2 million, or 0.61% of average loans and leases, compared with $9.8 million, or 1.39%, for the linked quarter and $14.0 million, or 2.00%, for the comparable year-over-year quarter. Included in the first quarter 2010 total net charge-off amount was $8.8 million related to alleged fraudulent activity noted in prior periods’, representing 125 basis points of average loans and leases. Excluding this activity, net charge-offs for the period totaled $5.2 million, or 75 basis points of average loans and leases.

Nonperforming Assets

Nonperforming loans totaled $80.6 million and nonperforming assets totaled $95.5 million as of March 31, 2011 compared with $79.9 million and $97.8 million, respectively, for the linked quarter and $74.5 million and $92.5 million, respectively, for the comparable year-over-year quarter. The decrease in nonperforming assets relative to the linked quarter was driven primarily by a reduction in OREO. During the quarter, the Company recognized a reduction in value of $3.1 million related to vacant land obtained from a commercial real estate developer. Prior to the write-down, this property was the largest single item in OREO and subsequently has a remaining exposure of $3.4 million, or 22.8% of the total OREO balance.

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Total classified assets decreased $16.4 million, or 8.1%, during the first quarter 2011 to $185.7 million. Classified assets are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse. The reduction was the result of resolution strategies outpacing growth in downgraded loans during the quarter, due primarily to the combination of ongoing efforts in working with stressed borrowers and noting pockets of stabilization within the Company’s strategic markets.

While the Company has experienced positive migration patterns in its level of classified assets and delinquent loans, economic factors and market conditions within the Company’s strategic markets remain challenging. Borrowers continue to experience stress and valuations on real estate loan collateral and OREO will continue to impact restructurings and resolutions. If recent progress made by the economy reverses and begins demonstrating recession-like characteristics, the Company’s portfolio will likely reflect that deterioration.

Delinquent Loans

As of March 31, 2011, loans 30-to-89 days past due declined 8.8% to $20.4 million, or 0.73% of period end loans, from $22.3 million, or 0.79% of period end loans, as of December 31, 2010. The first quarter 2011 balance also declined 9.8% from $22.6 million, or 0.80% of period end loans, for the comparable year-over-year quarter. During the quarter, the improvement in delinquency rates was realized across almost all the Company’s portfolios with only the commercial real estate book experiencing a small increase in past due loans.

Provision for Loan & Lease Losses

First quarter 2011 provision expense related to uncovered loans and leases was $647,000 as compared to $9.7 million during the linked quarter and $11.4 million during the comparable year-over-year quarter. Provision expense, which is a result of the Company’s modeling efforts to estimate the period end allowance for loan and lease losses, decreased relative to the linked quarter primarily as a result of positive migration trends in classified assets and delinquencies as well as the impact on the loan portfolio of improving macro-economic trends.

Allowance for Loan & Lease Losses

As of the end of the first quarter 2011, the allowance for uncovered loan and lease losses was $53.6 million as compared to $57.2 million as of December 31, 2010 and $56.6 million as of March 31, 2010. As a percentage of period-end loans, the allowance for loan and lease losses was 1.93% as of March 31, 2011 as compared to 2.03% as of December 31, 2010 and 2.01% as of March 31, 2010. The allowance for loan and lease losses as of March 31, 2011 reflects management’s estimate of credit risk inherent in the Company’s uncovered loan portfolio at that time.

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LOANS (EXCLUDING COVERED LOANS)

The following table presents the loan portfolio, not including covered loans, as of March 31, 2011, December 31, 2010 and March 31, 2010.

Table IV
	As of
	March 31, 2011					December 31, 2010					March 31, 2010
			Percent					Percent					Percent
(Dollars in thousands)	Balance		of Total			Balance		of Total			Balance		of Total

Commercial	$	794,821		28.6	%	$	800,253		28.4	%	$	763,084		27.1	%

Real estate - construction		145,355		5.2	%		163,543		5.8	%		216,289		7.7	%

Real estate - commercial		1,131,306		40.7	%		1,139,931		40.5	%		1,091,830		38.8	%

Real estate - residential		268,746		9.7	%		269,173		9.6	%		306,769		10.9	%

Installment		66,028		2.4	%		69,711		2.5	%		78,682		2.8	%

Home equity		339,590		12.2	%		341,310		12.1	%		330,973		11.8	%

Credit card		28,104		1.0	%		29,563		1.0	%		27,960		1.0	%

Lease financing		7,147		0.3	%		2,609		0.1	%		15		0.0	%

Total	$	2,781,097		100.0	%	$	2,816,093		100.0	%	$	2,815,602		100.0	%

Loans, excluding covered loans, totaled $2.8 billion at the end of the first quarter, representing a decrease of $35.0 million, or 1.2%, compared to December 31, 2010 and a decrease of $34.5 million, or 1.2%, compared to March 31, 2010. The composition of the loan portfolio remained similar to the linked quarter with slight net declines occurring in all portfolios except lease financing, which is a relatively new product line for the Company. Loan demand remains a challenge in the Company’s strategic operating markets due to uncertainty in the economic environment.

INVESTMENTS

The following table presents a summary of the total investment portfolio at March 31, 2011.

Table V
	As of March 31, 2011
	Book		Percent of			Book		Cost		Market		Gain/
(Dollars in thousands)	Value		Total			Yield		Basis		Value		(Loss)

U.S. Treasury notes	$	13,650		1.2	%		1.99		99.64		101.32	$	230
Agencies		105,386		9.4	%		2.76		100.00		100.34		358
CMOs (agency)		453,014		40.4	%		1.78		100.72		101.07		1,563
CMOs (private)		40		0.0	%		0.96		100.00		100.21		-
MBSs (agency)		442,475		39.5	%		3.52		102.22		104.75		10,675
		1,014,565		90.6	%		2.64		101.29		102.57		12,826

Municipal		16,528		1.5	%		7.26		99.28		100.96		279
Other 1		89,060		8.0	%		3.48		102.55		103.24		599
		105,588		9.4	%		4.07		102.04		102.87		878
Total investment portfolio	$	1,120,153		100.0	%		2.78		101.36		102.60	$	13,704

			Net Unrealized Gain/(Loss)									$	13,704
			Aggregate Gains										16,759
			Aggregate Losses										(3,055	)

			Net Unrealized Gain/(Loss) % of Book Value										1.22	%

1 Other includes $78.7 million of regulatory stock

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The increase in the investment portfolio as compared to the linked quarter was due to the purchase of $161.1 million of agency mortgage backed securities during the quarter, net of maturities and amortizations. The growth in the investment portfolio relative to both the linked and year-over-year quarters is primarily due to the investment of liquidity resulting from continued muted loan demand and deposit inflows. The addition of short and long-term securities was executed in conjunction with the Company’s overall asset/liability structure and interest rate risk modeling activities, and, to a lesser extent, market and rate expectations. As in past quarters, First Financial has avoided adding to its portfolio any particular securities that would materially increase credit risk or geographic concentration risk. The Company does, however, include these risks in its total evaluation of current market opportunities that would enhance the overall performance of the portfolio.

DEPOSITS

The following table presents a roll-forward of deposit activity during the first quarter 2011, including activity related to deposits acquired through the FDIC-assisted transactions.

Table VI
	Deposit Activity - First Quarter 2011
	Balance as of					Acquired-			Balance as of
	December 31,		Strategic			Non-Strategic			March 31,
(Dollars in thousands)	2010		Portfolio			Portfolio			2011

Transaction and savings accounts	$	3,351,406		249,434			(85,884	)	$	3,514,956

Time deposits		1,662,341		(47,119	)		(25,214	)		1,590,008

Brokered deposits		132,502		(1,433	)		(18,783	)		112,286
Total deposits	$	5,146,249	$	200,882		$	(129,881	)	$	5,217,250

Strategic transaction and savings accounts increased $249.4 million during the first quarter 2011, driven by $140.4 million of seasonal growth in public funds accounts and an increase of $109.1 million in business and retail transactional and savings accounts. Average savings account balances continued to grow, increasing 6.4% during the first quarter 2011 as compared to the linked quarter. The decline in acquired-non-strategic transaction and savings accounts was primarily driven by activity in the recently exited markets of Michigan and Louisville. As in prior quarters’, acquired-non-strategic time deposit and brokered deposit balances continued to decline.

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CAPITAL MANAGEMENT

The following table presents First Financial’s regulatory and other capital ratios as of March 31, 2011, December 31, 2010 and March 31, 2010.

Table VII
	As of
	March 31,			December 31,			March 31,			"Well-Capitalized"
	2011			2010			2010			Minimum

Leverage Ratio		11.08	%		10.89	%		9.76	%		5.00	%

Tier 1 Capital Ratio		20.49	%		18.45	%		17.37	%		6.00	%

Total Risk-Based Capital Ratio		21.77	%		19.72	%		18.64	%		10.00	%

Ending tangible shareholders' equity
to ending tangible assets		10.40	%		10.33	%		9.38	%		N/A

Ending tangible common shareholders'
equity to ending tangible assets		10.40	%		10.33	%		9.38	%		N/A

Capital levels increased during the first quarter 2011 as a result of the strong earnings performance, supporting the 20% increase in the quarterly dividend paid compared to the linked quarter. Regulatory capital ratios benefited additionally from a decline in risk-weighted assets. As of March 31, 2011, tangible book value per common share was $11.17 compared to $11.02 as of December 31, 2010 and $10.53 as of March 31, 2010. Regulatory capital ratios as of March 31, 2011 are considered preliminary pending the filing of the Company’s regulatory reports.

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SECTION II – SUPPLEMENTAL INFORMATION ON COVERED ASSETS AND ACQUISITION-RELATED ITEMS

To assist in analyzing the effect of the Company’s 2009 FDIC assisted transactions on the financial results, supplemental information that segregates the estimated impact on pre-tax earnings of certain acquisition-related items and provides additional detail on the covered loan portfolio follows.

SUMMARY OF SIGNIFICANT ACQUISITION-RELATED ITEMS

The following table illustrates the estimated effect of certain acquisition-related items on the results of operations for the three months ended March 31, 2011, December 31, 2010 and March 31, 2010.

Table VIII
	For the Three Months Ended
	March 31,			December 31,		March 31,
(Dollars in thousands)	2011			2010		2010

Income effect:
Accelerated discount on covered loans 1, 2	$	5,783		$	6,113	$	6,098
Acquired-non-strategic net interest income		8,902			9,937		10,854
FDIC loss sharing income		23,435			11,306		7,568
Service charges on deposit accounts related to
acquired-non-strategic operations		152			196		230
Other (loss) income related to acquired-non-strategic operations		(704	)		331		(150	)
Income related to the accelerated discount on covered
loans and acquired-non-strategic operations		37,568			27,883		24,600

Expense effect:
Provision for loan and lease losses - covered		26,016			13,997		9,460
Acquired-non-strategic operating expenses: 3
Salaries and employee benefits		1,497			820		122
Occupancy		2,153			161		1,415
Other		261			3,071		664
Total acquired-non-strategic operating expenses		3,911			4,052		2,201

FDIC indemnification support 3		783			1,160		605

Loss share and covered asset expense		3,171			616		-

Acquisition-related costs: 3
Integration-related costs		46			9		999
Professional services fees		55			396		1,457
Other		15			7		172
Total acquisition-related costs		116			412		2,628

Transition-related items: 3
Salaries and benefits		166			176		4,776
Occupancy		-			172		910
Other		30			336		577
Total transition-related items		196			684		6,263

Total expense effect		34,193			20,921		21,157

Total estimated effect on pre-tax earnings	$	3,375		$	6,962	$	3,443

1 Included in noninterest income

2 Net of the corresponding valuation adjustment on the FDIC indemnification asset

3 Included in noninterest expense

ACCELERATED DISCOUNT ON LOAN PREPAYMENTS AND DISPOSITIONS

During the first quarter 2011, First Financial recognized approximately $5.8 million in accelerated discount from acquired loans. Accelerated discount is recognized when acquired loans, which are recorded on the Company’s balance sheet at an amount less than the unpaid principal balance, prepay at an amount greater than their recorded book value. Prepayments can occur either through customer driven payments before the maturity date or loan sales. The amount of discount attributable to the credit loss component of each loan varies and the recognized amount is offset by a related reduction in the FDIC Indemnification Asset. The Company sold covered loans associated with the exited market of Michigan during the quarter with a carrying value of $36.8 million. These loans were sold at 100% of the unpaid principal balance and represented $3.1 million of the total accelerated discount noted above. The remaining $2.7 million of accelerated discount was due to covered loan prepayments during the quarter.

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OPERATING EXPENSES AND OTHER ACQUISITION-RELATED COSTS

Acquired-non-strategic operating expenses remained consistent with the linked quarter as staffing and facilities costs associated with the exited markets of Michigan and Louisville, KY were incurred through the closing date of March 31, 2011 for the respective branches. However, expenses related to transition-related items and acquisition-related costs continued to decline as planned.

NET INTEREST MARGIN IMPACT

Net interest margin is affected by certain activity related to the acquired loan portfolio. The majority of these loans are accounted for under ASC Topic 310-30 and, as such, the Company is required to periodically update its forecast of expected cash flows from these loans. The Company recognized an improvement in the cash flow expectations related to certain loan pools, which is reflected as a yield adjustment on a prospective basis. However, this yield improvement will be partially offset as the Company also recognized a decline in expected cash flows, and, hence, a lower prospective yield, related to the FDIC indemnification asset.

The following table shows the estimated yield earned by the Company on its legacy and originated loan portfolio, acquired loan portfolio and the FDIC indemnification asset for the three months ended March 31, 2011.

Table IX	For the Three Months Ended
	March 31, 2011
	Average
	Balance		Yield

Legacy and originated loan portfolio 1	$	2,961,008		5.38	%

Acquired loan portfolio accounted for under ASC Topic 310-30 2		1,280,639		10.97	%

FDIC indemnification asset 2		208,448		-2.28	%

Total	$	4,450,095		6.63	%

1 Includes acquired revolving loans not accounted for under ASC Topic 310-30; yield estimated at time of origination or acquisition

2 Future yield adjustments subject to change based on required, periodic valuation procedures

As part of its on-going valuation procedures, the Company experienced a $20.7 million net improvement in the cash flow expectations related to certain loan pools during the first quarter 2011. As a result, the average yield earned on covered loans increased from 10.29% during the fourth quarter 2010 to 10.97% during the first quarter 2011. On a prospective basis and until its next periodic valuation, the Company expects the yield on covered loans to be 11.53%.

This projected improvement in cash flow expectations on loans is partially offset by a related decline in cash flow expectations on the FDIC indemnification asset which is recognized through its yield. The net result of improvement and impairment activity related to covered loans affected the average yield earned on the indemnification asset, decreasing from 0.40% during the fourth quarter 2010 to -2.28% during the first quarter 2011. On a prospective basis and until its next periodic valuation, the Company expects the yield on the indemnification asset to be -3.07%.

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COVERED ASSETS & LOSS SHARE AGREEMENTS

As of March 31, 2011, 32.5% of the Company’s total loans were covered loans. As required under the loss-share arrangements, First Financial must file monthly certifications with the FDIC on single-family residential loans and quarterly certifications on all other loans. To date, all certifications have been filed in a timely manner and without significant issues.

When losses are incurred on covered assets that exceed expectations, the Company recognizes the gross credit losses in excess of the valuation mark as either provision expense if related to loans or noninterest expense if related to OREO. Reimbursements due from the FDIC under loss share agreements related to these credit losses are recorded as noninterest income. As such, the net impact on earnings is the difference between the gross credit losses and FDIC reimbursements, representing the Company’s proportionate share of the credit losses realized on covered assets.

COVERED LOAN PORTFOLIO

The following table presents estimated activity in the covered loan portfolio by loan type during the first quarter 2011.

Table X
	Covered Loan Activity - First Quarter 2011
			Reduction in Recorded Investment Due to:
	December 31,				Prepayments /		Contractual			Net		Loans With		March 31,
(Dollars in thousands)	2010		Sales		Renewals		Activity 1			Charge-Offs 2		Coverage Removed		2011

Commercial	$	334,039	$	1,813	$	18,479	$	17,090		$	2,303	$	54	$	294,300
Real estate - construction		42,743		-		327		(2,376	)		3		-		44,789
Real estate - commercial		855,725		34,987		29,415		18,379			5,533		5,223		762,188
Real estate - residential		147,052		-		5,547		691			558		-		140,256
Installment		21,071		-		1,469		587			893		114		18,008
Home equity		73,695				2,354		(752	)		1,664				70,429
Other covered loans		7,168		-		-		1,123			-		-		6,045
Total covered loans	$	1,481,493	$	36,800	$	57,591	$	34,742		$	10,954	$	5,391	$	1,336,015

1 Includes partial paydowns, accretion of the valuation discount and advances on revolving loans

2 Indemnified at 80% from the FDIC

During the first quarter 2011, the total balance of covered loans decreased $145.5 million, or 9.8%, as compared to the previous quarter. Loans with coverage removed represent loans to primarily high quality borrowers involving a change in loan terms which caused the respective loans to no longer qualify for reimbursement from the FDIC in the event of credit losses.

ALLOWANCE FOR LOAN LOSSES

Under the applicable accounting guidance, the allowance for loan losses related to covered loans is a result of impairment identified in on-going valuation procedures and is generally recognized in the current period as provision expense. Improvement in the credit outlook is generally not recognized immediately but instead is reflected as an adjustment to the yield earned on the related loan pools on a prospective basis. However, if improvement is noted in a loan pool that had previously experienced impairment, the amount of improvement is recognized as a reduction to the applicable period’s provision expense. Additional improvement beyond previously recorded impairment is reflected as a yield adjustment on a prospective basis. The timing inherent in this accounting treatment may result in earnings volatility in future periods.

- 12 -

The Company has established an allowance for loan losses associated with covered loans based on estimated valuation procedures performed each quarter. As a result of net impairment identified in certain loan pools of $15.0 million and net charge-offs of $11.0 million during the first quarter, it recognized a provision expense related to covered loans of $26.0 million, resulting in an allowance for covered loan losses of $31.6 million as of March 31, 2011. The related receivable due from the FDIC under loss share agreements related to these loans of $23.4 million was recognized as FDIC loss share income and a corresponding increase to the FDIC indemnification asset.

Loss share and covered asset expense consists primarily of a $3.1 million loss related to covered other real estate owned (“OREO”), approximately 80% of which will be reimbursed under loss share agreements with the FDIC.

SUMMARY OF ACQUISITIONS

During the third quarter 2009, through FDIC-assisted transactions, First Financial assumed the banking operations of Peoples Community Bank (“Peoples”), Irwin Union Bank and Trust Company and Irwin Union Bank, F.S.B. (collectively, “Irwin”). In connection with the FDIC-assisted transactions, the Company has loss sharing arrangements with the FDIC. Under the terms of these agreements, the FDIC will reimburse the Company for losses with respect to certain loans (“covered loans”) and other real estate owned (“OREO”) (collectively, “covered assets”).

As a result of the acquisitions, the Company’s business and operating markets expanded significantly. To assist readers in understanding the financial and strategic impact of the acquisitions, the combined operations of First Financial’s legacy and acquired businesses will be discussed in three categories: “Legacy-Strategic”, “Acquired-Strategic” and “Acquired-Non-Strategic”. Definitions of the business categories and other financial items related to the acquisitions can be found below in “Glossary of Terms”. Available on the Company’s website at www.bankatfirst.com is a presentation providing supplemental information regarding its quarterly results.

Glossary of Terms

To assist readers in understanding the Company’s financial results and the effect of the acquisitions on reported amounts, the following terms are used throughout this release to refer to specific acquisition-related items. The first three define the business components referred to above and the remaining items define specific covered loan terminology.

Legacy-strategic – Elements of the business that existed prior to the acquisitions and will continue to be supported.

Acquired-strategic – Elements of the business that the Company intends to retain and will continue to support and build. Legacy-strategic and acquired-strategic are collectively referred to as “strategic.”

Acquired-non-strategic – Elements of the business that the Company intends to exit but will continue to support to obtain maximum economic value. No growth or replacement is expected.

Accelerated discount on covered loans – The acceleration of the unrealized valuation discount. This item will be ongoing but diminishing as covered loan balances decline over time.

UPB – Unpaid principal balance

Carrying value – The unpaid principal balance of a covered loan less any valuation discount.

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. In some instances, financial data may not add up due to rounding.

- 13 -

Teleconference / Webcast Information

First Financial’s senior management will host a conference call to discuss the Company’s financial and operating results on Thursday, April 28, 2011 at 9:00 a.m. Members of the public who would like to listen to the conference call should dial (877) 317-6789 (U.S. toll free), (866) 605-3852 (Canada toll free) or +1 (412) 317-6789 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call through May 12, 2011 at (877) 344-7529 (U.S. toll free) and +1 (412) 317-0088 (International); conference number 447697. The webcast will be archived on the Investor Relations section of the Company’s website through April 27, 2012.

Press Release and Additional Information on Website

This press release as well as supplemental information related to this release is available to the public through the Investor Relations section of First Financial’s website at www.bankatfirst.com/investor.

Forward-Looking Statements

Certain statements contained in this news release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the ‘‘Act’’). In addition, certain statements in future filings by First Financial with the SEC, in press releases, and in oral and written statements made by or with the approval of First Financial which are not statements of historical fact constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to, projections of revenues, income or loss, earnings or loss per share, the payment or non-payment of dividends, capital structure and other financial items, statements of plans and objectives of First Financial or its management or board of directors, and statements of future economic performances and statements of assumptions underlying such statements. Words such as ‘‘believes’’, ‘‘anticipates’’, “likely”, “expected”, ‘‘intends’’, and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Management’s analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks 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 we conduct operations may continue to deteriorate resulting in, among other things, a further deterioration in credit quality or a reduced demand for credit, including the resultant effect on our loan portfolio, allowance for loan and lease losses and overall financial performance;

the ability of financial institutions to access sources of liquidity at a reasonable cost;

the impact of recent upheaval in the financial markets and the effectiveness of domestic and international governmental actions taken in response, such as the U.S. Treasury’s TARP and the FDIC’s Temporary Liquidity Guarantee Program, and the effect of such governmental actions on us, our competitors and counterparties, financial markets generally and availability of credit specifically, and the U.S. and international economies, including potentially higher FDIC premiums arising from increased payments from FDIC insurance funds as a result of depository institution failures;

the effect of and changes in policies and laws or regulatory agencies (notably the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act);

inflation and possible changes in interest rates;

our ability to keep up with technological changes;

our ability to comply with the terms of loss sharing agreements with the FDIC;

mergers and acquisitions, including costs or difficulties related to the integration of acquired companies and the wind-down of non-strategic operations that may be greater than expected;

the risk that exploring merger and acquisition opportunities may detract from management’s time and ability to successfully manage our company;

expected cost savings in connection with the consolidation of recent acquisitions may not be fully realized or realized within the expected time frames, and deposit attrition, customer loss and revenue loss following completed acquisitions may be greater than expected;

our ability to increase market share and control expenses;

the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as the Financial Accounting Standards Board and the SEC;

adverse changes in the securities and debt markets;

- 14 -

our success in recruiting and retaining the necessary personnel to support business growth and expansion and maintain sufficient expertise to support increasingly complex products and services;

monetary and fiscal policies of the Board of Governors of the Federal Reserve System (Federal Reserve) and the U.S. government and other governmental initiatives affecting the financial services industry;

our ability to manage loan delinquency and charge-off rates and changes in estimation of the adequacy of the allowance for loan losses; and

the costs and effects of litigation and of unexpected or adverse outcomes in such litigation.

In addition, please refer to our Annual Report on Form 10-K for the year ended December 31, 2010, as well as our other filings with the SEC, for a more detailed discussion of these risks and uncertainties and other factors. Such forward-looking statements are meaningful only on the date when such statements are made, and First Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such a statement is made to reflect the occurrence of unanticipated events.

About First Financial Bancorp

First Financial Bancorp is a Cincinnati, Ohio based bank holding company. As of March 31, 2011, the Company had $6.3 billion in assets, $4.1 billion in loans, $5.2 billion in deposits and $708 million in shareholders’ equity. The Company’s subsidiary, First Financial Bank, N.A., founded in 1863, provides banking and financial services products through its three lines of business: commercial, retail and wealth management. The commercial and retail units provide traditional banking services to business and consumer clients. First Financial Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.4 billion in assets under management as of March 31, 2011. The Company’s strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 102 banking centers. Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.

Contact Information

Investors/Analysts	Media
Kenneth Lovik	Cheryl Lipp
Vice President, Investor Relations and	First Vice President, Director of Communications
Corporate Development	(513) 979-5797
(513) 979-5837	cheryl.lipp@bankatfirst.com
kenneth.lovik@bankatfirst.com

- 15 -

Selected Financial Information

March 31, 2011

(unaudited)

Contents	Page

Consolidated Financial Highlights	2

Consolidated Quarterly Statements of Income	3

Consolidated Statements of Condition	4

Average Consolidated Statements of Condition	5

Net Interest Margin Rate / Volume Analysis	6

Credit Quality	7

Capital Adequacy	8

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share)

(Unaudited)

							Three months ended,
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2011			2010			2010			2010			2010

RESULTS OF OPERATIONS
Net income	$	17,207		$	14,300		$	15,579		$	17,774		$	11,598
Net income available to common shareholders	$	17,207		$	14,300		$	15,579		$	17,774		$	9,733
Net earnings per common share - basic	$	0.30		$	0.25		$	0.27		$	0.31		$	0.18
Net earnings per common share - diluted	$	0.29		$	0.24		$	0.27		$	0.30		$	0.17
Dividends declared per common share	$	0.12		$	0.10		$	0.10		$	0.10		$	0.10


KEY FINANCIAL RATIOS
Return on average assets		1.11	%		0.90	%		0.96	%		1.08	%		0.71	%
Return on average shareholders' equity		10.04	%		8.14	%		9.03	%		10.62	%		6.92	%
Return on average common shareholders' equity		10.04	%		8.14	%		9.03	%		10.62	%		6.25	%
Return on average tangible common shareholders' equity		10.94	%		8.87	%		9.87	%		11.64	%		6.89	%

Net interest margin		4.73	%		4.65	%		4.59	%		4.53	%		4.89	%
Net interest margin (fully tax equivalent) (1)		4.75	%		4.67	%		4.60	%		4.54	%		4.91	%

Ending equity as a percent of ending assets		11.21	%		11.16	%		11.23	%		10.35	%		10.20	%
Ending tangible common equity as a percent of:
Ending tangible assets		10.40	%		10.33	%		10.38	%		9.55	%		9.38	%
Risk-weighted assets		19.29	%		17.36	%		17.61	%		17.17	%		16.39	%

Average equity as a percent of average assets		11.09	%		11.12	%		10.68	%		10.14	%		10.22	%
Average common equity as a percent of average assets		11.09	%		11.12	%		10.68	%		10.14	%		9.51	%
Average tangible common equity as a percent of
average tangible assets		10.28	%		10.29	%		9.86	%		9.33	%		8.70	%

Book value per common share	$	12.15		$	12.01		$	11.90		$	11.74		$	11.55
Tangible book value per common share	$	11.17		$	11.02		$	10.90		$	10.73		$	10.53

Tier 1 Ratio (2)		20.49	%		18.45	%		18.64	%		18.15	%		17.37	%
Total Capital Ratio (2)		21.77	%		19.72	%		19.91	%		19.42	%		18.64	%
Leverage Ratio (2)		11.08	%		10.89	%		10.50	%		9.99	%		9.76	%

AVERAGE BALANCE SHEET ITEMS
Loans (3)	$	2,821,450		$	2,804,832		$	2,805,764		$	2,806,616		$	2,849,562
Covered loans and FDIC indemnification asset		1,628,645			1,783,737			1,886,750			2,041,820			2,168,407
Investment securities		1,045,292			798,135			691,700			597,991			558,595
Interest-bearing deposits with other banks		276,837			405,920			483,097			554,333			394,741
Total earning assets	$	5,772,224		$	5,792,624		$	5,867,311		$	6,000,760		$	5,971,305
Total assets	$	6,266,408		$	6,270,480		$	6,408,479		$	6,621,021		$	6,647,541
Noninterest-bearing deposits	$	733,242		$	741,343		$	721,501		$	740,011		$	774,393
Interest-bearing deposits		4,431,524			4,438,113			4,448,929			4,570,971			4,544,471
Total deposits	$	5,164,766		$	5,179,456		$	5,170,430		$	5,310,982		$	5,318,864
Borrowings	$	230,087		$	213,107		$	352,370		$	447,945		$	458,876
Shareholders' equity	$	695,062		$	697,016		$	684,112		$	671,051		$	679,567

CREDIT QUALITY RATIOS (excluding covered assets)
Allowance to ending loans		1.93	%		2.03	%		2.07	%		2.07	%		2.01	%
Allowance to nonaccrual loans		86.46	%		91.87	%		86.54	%		86.71	%		84.71	%
Allowance to nonperforming loans		66.57	%		71.62	%		71.99	%		72.79	%		76.08	%
Nonperforming loans to total loans		2.90	%		2.84	%		2.88	%		2.84	%		2.65	%
Nonperforming assets to ending loans, plus OREO		3.42	%		3.45	%		3.51	%		3.42	%		3.27	%
Nonperforming assets to total assets		1.51	%		1.57	%		1.59	%		1.46	%		1.41	%
Net charge-offs to average loans (annualized)		0.61	%		1.39	%		0.97	%		0.71	%		2.00	%

(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) March 31, 2011 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

- 2 -

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share)

(Unaudited)

	2011			2010
	First			Fourth			Third			Second			First			Full			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Year			Linked Qtr.			Comparable Qtr.
Interest income
Loans, including fees	$	72,780		$	75,836		$	75,957		$	74,944		$	79,338		$	306,075			(4.0	%)		(8.3	%)
Investment securities
Taxable		6,803			5,522			5,386			5,444			5,396			21,748			23.2	%		26.1	%
Tax-exempt		198			214			240			245			235			934			(7.5	%)		(15.7	%)
Total investment securities interest		7,001			5,736			5,626			5,689			5,631			22,682			22.1	%		24.3	%
Other earning assets		282			749			3,101			5,305			5,590			14,745			(62.3	%)		(95.0	%)
Total interest income		80,063			82,321			84,684			85,938			90,559			343,502			(2.7	%)		(11.6	%)

Interest expense
Deposits		11,400			12,923			14,457			15,308			15,648			58,336			(11.8	%)		(27.1	%)
Short-term borrowings		45			33			25			17			19			94			36.4	%		136.8	%
Long-term borrowings		1,089			1,194			2,034			2,556			2,557			8,341			(8.8	%)		(57.4	%)
Subordinated debentures and capital securities		194			265			322			319			315			1,221			(26.8	%)		(38.4	%)
Total interest expense		12,728			14,415			16,838			18,200			18,539			67,992			(11.7	%)		(31.3	%)
Net interest income		67,335			67,906			67,846			67,738			72,020			275,510			(0.8	%)		(6.5	%)
Provision for loan and lease losses - uncovered		647			9,741			6,287			6,158			11,378			33,564			(93.4	%)		(94.3	%)
Provision for loan and lease losses - covered		26,016			13,997			20,725			18,962			9,460			63,144			85.9	%		175.0	%
Net interest income after provision for loan and lease losses		40,672			44,168			40,834			42,618			51,182			178,802			(7.9	%)		(20.5	%)

Noninterest income
Service charges on deposit accounts		4,610			5,090			5,632			5,855			5,611			22,188			(9.4	%)		(17.8	%)
Trust and wealth management fees		3,925			3,283			3,366			3,668			3,545			13,862			19.6	%		10.7	%
Bankcard income		2,155			2,255			2,193			2,102			1,968			8,518			(4.4	%)		9.5	%
Net gains from sales of loans		989			1,241			2,749			473			169			4,632			(20.3	%)		485.2	%
FDIC loss sharing income		23,435			11,306			17,800			15,170			7,568			51,844			107.3	%		209.7	%
Accelerated discount on covered loans		5,783			6,113			9,448			7,408			6,098			29,067			(5.4	%)		(5.2	%)
(Loss) income on preferred securities		0			0			0			0			(30	)		(30	)		N/M			(100.0	%)
Other		2,761			5,246			3,707			5,791			2,006			16,750			(47.4	%)		37.6	%
Total noninterest income		43,658			34,534			44,895			40,467			26,935			146,831			26.4	%		62.1	%

Noninterest expenses
Salaries and employee benefits		27,570			28,819			28,790			29,513			30,241			117,363			(4.3	%)		(8.8	%)
Net occupancy		6,860			4,430			4,663			5,340			8,122			22,555			54.9	%		(15.5	%)
Furniture and equipment		2,553			3,022			2,490			2,514			2,273			10,299			(15.5	%)		12.3	%
Data processing		1,238			1,593			1,191			1,136			1,232			5,152			(22.3	%)		0.5	%
Marketing		1,241			1,453			1,230			1,600			1,074			5,357			(14.6	%)		15.5	%
Communication		814			892			986			822			1,208			3,908			(8.7	%)		(32.6	%)
Professional services		2,227			2,863			2,117			2,446			1,743			9,169			(22.2	%)		27.8	%
Debt extinguishment		0			0			8,029			0			0			8,029			N/M			N/M
State intangible tax		1,365			1,362			724			1,426			1,331			4,843			0.2	%		2.6	%
FDIC assessments		2,121			2,272			2,123			1,907			2,010			8,312			(6.6	%)		5.5	%
Other		11,801			9,584			8,967			9,115			11,027			38,693			23.1	%		7.0	%
Total noninterest expenses		57,790			56,290			61,310			55,819			60,261			233,680			2.7	%		(4.1	%)
Income before income taxes		26,540			22,412			24,419			27,266			17,856			91,953			18.4	%		48.6	%
Income tax expense		9,333			8,112			8,840			9,492			6,258			32,702			15.1	%		49.1	%
Net income		17,207			14,300			15,579			17,774			11,598			59,251			20.3	%		48.4	%
Dividends on preferred stock		0			0			0			0			1,865			1,865			N/M			(100.0	%)
Net income available to common shareholders	$	17,207		$	14,300		$	15,579		$	17,774		$	9,733		$	57,386			20.3	%		76.8	%

ADDITIONAL DATA
Net earnings per common share - basic	$	0.30		$	0.25		$	0.27		$	0.31		$	0.18		$	1.01
Net earnings per common share - diluted	$	0.29		$	0.24		$	0.27		$	0.30		$	0.17		$	0.99
Dividends declared per common share	$	0.12		$	0.10		$	0.10		$	0.10		$	0.10		$	0.40

Return on average assets		1.11	%		0.90	%		0.96	%		1.08	%		0.71	%		0.91	%
Return on average shareholders' equity		10.04	%		8.14	%		9.03	%		10.62	%		6.92	%		8.68	%

Interest income	$	80,063		$	82,321		$	84,684		$	85,938		$	90,559		$	343,502			(2.7	%)		(11.6	%)
Tax equivalent adjustment		238			220			222			212			212			866			8.2	%		12.3	%
Interest income - tax equivalent		80,301			82,541			84,906			86,150			90,771			344,368			(2.7	%)		(11.5	%)
Interest expense		12,728			14,415			16,838			18,200			18,539			67,992			(11.7	%)		(31.3	%)
Net interest income - tax equivalent	$	67,573		$	68,126		$	68,068		$	67,950		$	72,232		$	276,376			(0.8	%)		(6.5	%)

Net interest margin		4.73	%		4.65	%		4.59	%		4.53	%		4.89	%		4.66	%
Net interest margin (fully tax equivalent) (1)		4.75	%		4.67	%		4.60	%		4.54	%		4.91	%		4.68	%

Full-time equivalent employees (2)		1,483			1,529			1,535			1,511			1,466

(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.

- 3 -

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			% Change			% Change
	2011			2010			2010			2010			2010			Linked Qtr.			Comparable Qtr.
ASSETS
Cash and due from banks	$	96,709		$	105,981		$	144,101		$	166,604		$	308,330			(8.7	%)		(68.6	%)
Interest-bearing deposits with other banks		387,923			176,952			280,457			675,891			416,619			119.2	%		(6.9	%)
Investment securities available-for-sale		1,024,684			919,110			616,175			503,404			430,519			11.5	%		138.0	%
Investment securities held-to-maturity		16,780			17,406			17,842			17,601			17,903			(3.6	%)		(6.3	%)
Other investments		78,689			78,689			86,509			86,509			87,029			0.0	%		(9.6	%)
Loans held for sale		6,813			29,292			19,075			11,946			3,243			(76.7	%)		110.1	%
Loans
Commercial		794,821			800,253			763,449			749,522			763,084			(0.7	%)		4.2	%
Real estate - construction		145,355			163,543			178,914			197,112			216,289			(11.1	%)		(32.8	%)
Real estate - commercial		1,131,306			1,139,931			1,095,543			1,113,836			1,091,830			(0.8	%)		3.6	%
Real estate - residential		268,746			269,173			283,914			296,295			306,769			(0.2	%)		(12.4	%)
Installment		66,028			69,711			73,138			75,862			78,682			(5.3	%)		(16.1	%)
Home equity		339,590			341,310			341,288			332,928			330,973			(0.5	%)		2.6	%
Credit card		28,104			29,563			28,825			28,567			27,960			(4.9	%)		0.5	%
Lease financing		7,147			2,609			138			15			15			173.9	%		N/M
Total loans, excluding covered loans		2,781,097			2,816,093			2,765,209			2,794,137			2,815,602			(1.2	%)		(1.2	%)
Less
Allowance for loan and lease losses		53,645			57,235			57,249			57,811			56,642			(6.3	%)		(5.3	%)
Net loans - uncovered		2,727,452			2,758,858			2,707,960			2,736,326			2,758,960			(1.1	%)		(1.1	%)
Covered loans		1,336,015			1,481,493			1,609,584			1,717,632			1,833,349			(9.8	%)		(27.1	%)
Less
Allowance for loan and lease losses		31,555			16,493			11,583			1,273			0			91.3	%		N/M
Net loans - covered		1,304,460			1,465,000			1,598,001			1,716,359			1,833,349			(11.0	%)		(28.8	%)
Net loans		4,031,912			4,223,858			4,305,961			4,452,685			4,592,309			(4.5	%)		(12.2	%)
Premises and equipment		115,873			118,477			116,959			114,630			115,836			(2.2	%)		0.0	%
Goodwill		51,820			51,820			51,820			51,820			51,820			0.0	%		0.0	%
Other intangibles		5,227			5,604			6,049			6,614			7,058			(6.7	%)		(25.9	%)
FDIC indemnification asset		207,359			222,648			237,709			251,633			273,328			(6.9	%)		(24.1	%)
Accrued interest and other assets		290,692			300,388			271,843			244,298			244,902			(3.2	%)		18.7	%
Total Assets	$	6,314,481		$	6,250,225		$	6,154,500		$	6,583,635		$	6,548,896			1.0	%		(3.6	%)

LIABILITIES
Deposits
Interest-bearing	$	1,136,219		$	1,111,877		$	999,922		$	1,135,970		$	1,042,790			2.2	%		9.0	%
Savings		1,628,952			1,534,045			1,407,332			1,350,161			1,303,737			6.2	%		24.9	%
Time		1,702,294			1,794,843			1,930,652			2,042,824			2,135,683			(5.2	%)		(20.3	%)
Total interest-bearing deposits		4,467,465			4,440,765			4,337,906			4,528,955			4,482,210			0.6	%		(0.3	%)
Noninterest-bearing		749,785			705,484			713,357			718,381			741,476			6.3	%		1.1	%
Total deposits		5,217,250			5,146,249			5,051,263			5,247,336			5,223,686			1.4	%		(0.1	%)
Federal funds purchased and securities sold
under agreements to repurchase		87,973			59,842			58,747			38,299			38,443			47.0	%		128.8	%
Long-term debt		102,976			128,880			129,224			384,775			394,404			(20.1	%)		(73.9	%)
Other long-term debt		20,620			20,620			20,620			20,620			20,620			0.0	%		0.0	%
Total borrowed funds		211,569			209,342			208,591			443,694			453,467			1.1	%		(53.3	%)
Accrued interest and other liabilities		177,698			197,240			203,715			211,049			203,984			(9.9	%)		(12.9	%)
Total Liabilities		5,606,517			5,552,831			5,463,569			5,902,079			5,881,137			1.0	%		(4.7	%)

SHAREHOLDERS' EQUITY
Common stock		576,992			580,097			579,309			578,362			581,747			(0.5	%)		(0.8	%)
Retained earnings		320,515			310,271			301,777			292,004			280,030			3.3	%		14.5	%
Accumulated other comprehensive loss		(12,332	)		(12,044	)		(9,106	)		(7,831	)		(9,091	)		2.4	%		35.7	%
Treasury stock, at cost		(177,211	)		(180,930	)		(181,049	)		(180,979	)		(184,927	)		(2.1	%)		(4.2	%)
Total Shareholders' Equity		707,964			697,394			690,931			681,556			667,759			1.5	%		6.0	%
Total Liabilities and Shareholders' Equity	$	6,314,481		$	6,250,225		$	6,154,500		$	6,583,635		$	6,548,896			1.0	%		(3.6	%)

N/M = Not meaningful.

- 4 -

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

							Quarterly Averages
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2011			2010			2010			2010			2010
ASSETS
Cash and due from banks	$	111,953		$	122,167		$	185,322		$	273,162		$	336,333
Interest-bearing deposits with other banks		276,837			405,920			483,097			554,333			394,741
Investment securities		1,045,292			798,135			691,700			597,991			558,595
Loans held for sale		8,226			21,141			14,909			7,615			2,292
Loans
Commercial		802,944			739,082			735,228			746,636			785,579
Real estate - construction		158,403			172,585			187,401			202,513			231,853
Real estate - commercial		1,135,630			1,155,896			1,135,547			1,110,562			1,079,577
Real estate - residential		273,422			276,166			295,917			301,880			309,104
Installment		67,700			71,623			71,739			77,299			79,437
Home equity		340,285			339,192			336,288			332,044			333,275
Credit card		28,321			28,962			28,664			28,052			28,430
Lease financing		6,519			185			71			15			15
Total loans, excluding covered loans		2,813,224			2,783,691			2,790,855			2,799,001			2,847,270
Less
Allowance for loan and lease losses		59,756			60,433			60,871			60,430			59,891
Net loans - uncovered		2,753,468			2,723,258			2,729,984			2,738,571			2,787,379
Covered loans		1,420,197			1,551,003			1,648,030			1,781,741			1,887,608
Less
Allowance for loan and lease losses		23,399			16,104			882			14			0
Net loans - covered		1,396,798			1,534,899			1,647,148			1,781,727			1,887,608
Net loans		4,150,266			4,258,157			4,377,132			4,520,298			4,674,987
Premises and equipment		119,006			117,659			115,518			115,587			108,608
Goodwill		51,820			51,820			51,820			51,820			51,820
Other intangibles		5,421			5,841			6,384			6,848			7,431
FDIC indemnification asset		208,448			232,734			238,720			260,079			280,799
Accrued interest and other assets		289,139			256,906			243,877			233,288			231,935
Total Assets	$	6,266,408		$	6,270,480		$	6,408,479		$	6,621,021		$	6,647,541

LIABILITIES
Deposits
Interest-bearing	$	1,088,791		$	1,086,685		$	1,029,350		$	1,139,001		$	1,050,697
Savings		1,585,065			1,490,132			1,412,441			1,341,194			1,318,374
Time		1,757,668			1,861,296			2,007,138			2,090,776			2,175,400
Total interest-bearing deposits		4,431,524			4,438,113			4,448,929			4,570,971			4,544,471
Noninterest-bearing		733,242			741,343			721,501			740,011			774,393
Total deposits		5,164,766			5,179,456			5,170,430			5,310,982			5,318,864
Federal funds purchased and securities sold
under agreements to repurchase		89,535			63,489			50,580			37,353			38,413
Long-term debt		119,932			128,998			281,170			389,972			399,843
Other long-term debt		20,620			20,620			20,620			20,620			20,620
Total borrowed funds		230,087			213,107			352,370			447,945			458,876
Accrued interest and other liabilities		176,493			180,901			201,567			191,043			190,234
Total Liabilities		5,571,346			5,573,464			5,724,367			5,949,970			5,967,974

SHAREHOLDERS' EQUITY
Preferred stock		0			0			0			0			47,521
Common stock		579,790			579,701			578,810			580,299			549,428
Retained earnings		308,841			306,923			294,346			282,634			277,775
Accumulated other comprehensive loss		(13,251	)		(8,584	)		(8,021	)		(8,320	)		(9,873	)
Treasury stock, at cost		(180,318	)		(181,024	)		(181,023	)		(183,562	)		(185,284	)
Total Shareholders' Equity		695,062			697,016			684,112			671,051			679,567
Total Liabilities and Shareholders' Equity	$	6,266,408		$	6,270,480		$	6,408,479		$	6,621,021		$	6,647,541

- 5 -

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE / VOLUME ANALYSIS (1)

(Dollars in thousands)

(Unaudited)

	Quarterly Averages
	Mar. 31, 2011						Dec. 31, 2010						Mar. 31, 2010						Linked Qtr. Income Variance									Comparable Qtr. Income Variance
	Balance			Yield			Balance			Yield			Balance			Yield			Rate			Volume			Total			Rate			Volume			Total
Earning assets
Investment securities	$	1,045,292			2.72	%	$	798,135			2.85	%	$	558,595			4.09	%	$	(272	)	$	1,537		$	1,265		$	(1,890	)	$	3,260		$	1,370
Interest-bearing deposits with other banks		276,837			0.41	%		405,920			0.36	%		394,741			0.35	%		51			(141	)		(90	)		60			(120	)		(60	)
Gross loans, including covered loans and indemnification asset (2)		4,450,095			6.63	%		4,588,569			6.59	%		5,017,969			6.84	%		499			(3,932	)		(3,433	)		(2,519	)		(9,287	)		(11,806	)
Total earning assets		5,772,224			5.63	%		5,792,624			5.64	%		5,971,305			6.15	%		278			(2,536	)		(2,258	)		(4,349	)		(6,147	)		(10,496	)

Nonearning assets
Allowance for loan and lease losses		(83,155	)					(76,537	)					(59,891	)
Cash and due from banks		111,953						122,167						336,333
Accrued interest and other assets		465,386						432,226						399,794
Total assets	$	6,266,408					$	6,270,480					$	6,647,541

Interest-bearing liabilities
Total interest-bearing deposits	$	4,431,524			1.04	%	$	4,438,113			1.16	%	$	4,544,471			1.40	%	$	(1,252	)	$	(271	)	$	(1,523	)	$	(3,957	)	$	(291	)	$	(4,248	)
Borrowed funds
Short-term borrowings		89,535			0.20	%		63,489			0.21	%		38,413			0.20	%		0			12			12			0			26			26
Long-term debt		119,932			3.68	%		128,998			3.67	%		399,843			2.59	%		3			(108	)		(105	)		1,074			(2,542	)		(1,468	)
Other long-term debt		20,620			3.82	%		20,620			5.10	%		20,620			6.20	%		(67	)		(4	)		(71	)		(121	)		0			(121	)
Total borrowed funds		230,087			2.34	%		213,107			2.78	%		458,876			2.56	%		(64	)		(100	)		(164	)		953			(2,516	)		(1,563	)
Total interest-bearing liabilities		4,661,611			1.11	%		4,651,220			1.23	%		5,003,347			1.51	%		(1,316	)		(371	)		(1,687	)		(3,004	)		(2,807	)		(5,811	)

Noninterest-bearing liabilities
Noninterest-bearing demand deposits		733,242						741,343						774,393
Other liabilities		176,493						180,901						190,234
Shareholders' equity		695,062						697,016						679,567
Total liabilities & shareholders' equity	$	6,266,408					$	6,270,480					$	6,647,541

Net interest income (1)	$	67,335					$	67,906					$	72,020					$	1,594		$	(2,165	)	$	(571	)	$	(1,345	)	$	(3,340	)	$	(4,685	)
Net interest spread (1)					4.52	%					4.41	%					4.64	%
Net interest margin (1)					4.73	%					4.65	%					4.89	%

(1) Not tax equivalent.

(2) Loans held for sale and nonaccrual loans are both included in gross loans.

- 6 -

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(excluding covered assets)

(Dollars in thousands)

(Unaudited)

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2011			2010			2010			2010			2010

ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	57,235		$	57,249		$	57,811		$	56,642		$	59,311
Provision for uncovered loan and lease losses		647			9,741			6,287			6,158			11,378
Gross charge-offs
Commercial		432			5,131			762			1,156			6,275
Real estate - construction		1,190			500			3,607			2,386			2,126
Real estate - commercial		2,089			1,887			2,013			359			3,932
Real estate - residential		108			196			717			246			534
Installment		72			231			205			304			414
Home equity		262			1,846			389			580			684
All other		448			494			431			426			520
Total gross charge-offs		4,601			10,285			8,124			5,457			14,485
Recoveries
Commercial		100			57			334			120			109
Real estate - construction		0			0			0			24			0
Real estate - commercial		35			243			728			99			12
Real estate - residential		9			6			11			4			3
Installment		98			116			116			127			160
Home equity		25			74			21			10			87
All other		97			34			65			84			67
Total recoveries		364			530			1,275			468			438
Total net charge-offs		4,237			9,755			6,849			4,989			14,047
Ending allowance for uncovered loan and lease losses	$	53,645		$	57,235		$	57,249		$	57,811		$	56,642

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial		0.17	%		2.72	%		0.23	%		0.56	%		3.18	%
Real estate - construction		3.05	%		1.15	%		7.64	%		4.68	%		3.72	%
Real estate - commercial		0.73	%		0.56	%		0.45	%		0.09	%		1.47	%
Real estate - residential		0.15	%		0.27	%		0.95	%		0.32	%		0.70	%
Installment		(0.16	%)		0.64	%		0.49	%		0.92	%		1.30	%
Home equity		0.28	%		2.07	%		0.43	%		0.69	%		0.73	%
All other		4.09	%		6.26	%		5.05	%		4.89	%		6.46	%
Total net charge-offs		0.61	%		1.39	%		0.97	%		0.71	%		2.00	%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans
Commercial	$	9,918		$	13,729		$	17,320		$	12,874		$	21,572
Real estate - construction		14,199			12,921			13,454			18,890			17,710
Real estate - commercial		30,846			28,342			27,945			28,272			21,196
Real estate - residential		4,419			4,607			4,801			4,571			4,116
Installment		262			150			279			267			365
Home equity		2,404			2,553			2,358			1,797			1,910
Total nonaccrual loans		62,048			62,302			66,157			66,671			66,869
Restructured loans		18,532			17,613			13,365			12,752			7,584
Total nonperforming loans		80,580			79,915			79,522			79,423			74,453
Other real estate owned (OREO)		14,953			17,907			18,305			16,818			18,087
Total nonperforming assets		95,533			97,822			97,827			96,241			92,540
Accruing loans past due 90 days or more		241			370			233			276			286
Total underperforming assets	$	95,774		$	98,192		$	98,060		$	96,517		$	92,826
Total classified assets	$	185,738		$	202,140		$	212,552		$	201,859		$	171,112

CREDIT QUALITY RATIOS (excluding covered assets)
Allowance for loan and lease losses to
Nonaccrual loans		86.46	%		91.87	%		86.54	%		86.71	%		84.71	%
Nonperforming loans		66.57	%		71.62	%		71.99	%		72.79	%		76.08	%
Total ending loans		1.93	%		2.03	%		2.07	%		2.07	%		2.01	%
Nonperforming loans to total loans		2.90	%		2.84	%		2.88	%		2.84	%		2.65	%
Nonperforming assets to
Ending loans, plus OREO		3.42	%		3.45	%		3.51	%		3.42	%		3.27	%
Total assets		1.51	%		1.57	%		1.59	%		1.46	%		1.41	%

- 7 -

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share)

(Unaudited)

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2011			2010			2010			2010			2010
PER COMMON SHARE
Market Price
High	$	18.91		$	19.41		$	17.10		$	21.32		$	19.00
Low	$	15.65		$	16.21		$	14.19		$	14.95		$	13.89
Close	$	16.69		$	18.48		$	16.68		$	14.95		$	17.78

Average common shares outstanding - basic		57,591,568			57,573,544			57,570,709			57,539,901			55,161,551
Average common shares outstanding - diluted		58,709,037			58,688,415			58,531,505			58,604,039			56,114,424
Ending common shares outstanding		58,286,890			58,064,977			58,057,934			58,062,655			57,833,969

REGULATORY CAPITAL	Preliminary
Tier 1 Capital	$	691,559		$	680,145		$	670,121		$	658,623		$	645,467
Tier 1 Ratio		20.49	%		18.45	%		18.64	%		18.15	%		17.37	%
Total Capital	$	734,714		$	727,252		$	715,938		$	704,752		$	692,630
Total Capital Ratio		21.77	%		19.72	%		19.91	%		19.42	%		18.64	%
Total Capital in excess of minimum
requirement	$	464,718		$	432,274		$	428,314		$	414,434		$	395,408
Total Risk-Weighted Assets	$	3,374,945		$	3,687,224		$	3,595,295		$	3,628,978		$	3,715,280
Leverage Ratio		11.08	%		10.89	%		10.50	%		9.99	%		9.76	%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending
assets		11.21	%		11.16	%		11.23	%		10.35	%		10.20	%
Ending tangible shareholders' equity
to ending tangible assets		10.40	%		10.33	%		10.38	%		9.55	%		9.38	%
Average shareholders' equity to
average assets		11.09	%		11.12	%		10.68	%		10.14	%		10.22	%
Average common shareholders' equity
to average assets		11.09	%		11.12	%		10.68	%		10.14	%		9.51	%
Average tangible shareholders' equity
to average tangible assets		10.28	%		10.29	%		9.86	%		9.33	%		9.42	%
Average tangible common shareholders'
equity to average tangible assets		10.28	%		10.29	%		9.86	%		9.33	%		8.70	%

- 8 -

Attached files

FIRST FINANCIAL BANCORP /OH/ Reports

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