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

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8-K - 8-K - FIRST FINANCIAL BANCORP /OH/	a8kearningsrelease3q15.htm

EXHIBIT 99.1

First Financial Bancorp Reports Third Quarter 2015 Financial Results

Celebrates 100th Consecutive Quarter of Profitability


•	Net Income of $18.7 million


•	Earnings per Share of $0.30


•	Return on Average Assets of 0.97%


•	Return on Average Tangible Common Equity of 12.33%


•	Net Interest Margin of 3.67% (fully tax equivalent)

Cincinnati, Ohio - October 22, 2015 - First Financial Bancorp (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the third quarter 2015. For the three months ended September 30, 2015, the Company recorded net income of $18.7 million, or $0.30 per diluted common share, compared to net income of $18.9 million, or $0.31 per diluted common share, in the second quarter of 2015 and $15.3 million, or $0.26 per diluted common share, in the third quarter of 2014.

Third quarter results included approximately $3.3 million of pre-tax non-operating expenses which were primarily related to the previously announced acquisition of Indianapolis, Indiana based Oak Street Holdings Corporation ("Oak Street") which closed during the quarter and adjustments to reserves for litigation-related items. Excluding these items, net income was $20.9 million, or $0.34 per diluted common share, return on average assets was 1.09% and return on average tangible common equity was 13.77%.

As of September 30, 2015, gross loan balances related to the Oak Street acquisition were $245.3 million. Excluding expenses related to the acquisition, which closed on August 14, 2015, Oak Street contributed approximately $0.02 to earnings per diluted share and 10 bps to net interest margin during the quarter.

Claude Davis, Chief Executive Officer, commented, “I am very pleased with our results for the third quarter, which marks our 100th consecutive quarter of profitability. On an operating basis, our net income grew 11% compared to the second quarter and 12% compared to the third quarter last year. Although net interest margin continues to be constrained by the prolonged low interest rate environment we are excited about the growth opportunities throughout our footprint. We are especially encouraged by the organic growth in our core-bank loan portfolio which increased by approximately 10%, on an annualized basis, compared to the linked quarter. In addition, the acquisition of Oak Street added $245.3 million of high yielding loans to our already well-diversified balance sheet."

"Our ability to successfully grow low-cost deposits continues to provide competitive advantage as we compete for new business and will be especially advantageous to us with the addition and expansion of Oak Street's high-yielding loan portfolio."

"We remain committed to our stated objectives of top-quartile performance. During the quarter, we generated $120.6 million of organic loan growth, completed the acquisition of Oak Street, and issued $120.0 million of 10-year subordinated debt.”

"As we look forward to the rest of 2015 and beyond, our focus remains centered on serving the financial needs of our commercial, small business, consumer and wealth management clients.”

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income for the third quarter was $63.2 million as compared to $58.7 million for the second quarter 2015 and $58.4 million for the third quarter 2014. Compared to the linked quarter, total interest income increased $4.8 million, or 7.6%, while total interest expense increased $0.3 million, or 6.7%. Net interest margin was 3.67%, on a fully tax equivalent basis, for the third quarter compared to 3.62% for the second quarter 2015 and 3.71% for the third quarter 2014.

Interest income earned on loans increased $4.1 million compared to the prior quarter, as average loan balances increased $233.3 million during the period, which included one additional day. The effective yield earned on the loan portfolio increased by 7 bps to 4.52% primarily related to the acquisition of Oak Street.

Interest income earned on investment securities increased $0.7 million compared to the prior quarter while average balances increased $65.3 million. The effective yield earned on the investment portfolio increased 5 bps to 2.39% as slower prepayments positively affected portfolio yields and the Company reinvested cash flows into predominately fixed-rate instruments during the quarter.

Interest expense increased by $0.3 million compared to the prior quarter due primarily to a $159.5 million increase in average borrowed funds and a $169.6 million increase in average interest-bearing deposits. The Company recorded non-interest expense of $0.7 million related to the prepayment of $14.1 million of, primarily acquired, long-term FHLB debt during the period. This was partially offset by the accelerated amortization of the fair-value mark which reduced interest expense by $0.5 million. During the quarter, the Company also issued $120.0 million of 10-year subordinated debt at 5.125% and raised $211.5 million of brokered time deposits, at a weighted average cost of 51 bps, to support the acquisition of Oak Street. The effective cost of borrowed funds decreased by 2 bps to 35 bps and the cost of interest-bearing deposits was unchanged at 42 bps.

NON-INTEREST INCOME

The Company's non-interest income was $20.4 million for the third quarter of 2015 compared to $21.4 million for the second quarter of 2015 and $16.5 million for the third quarter of 2014. The $1.1 million decrease versus the linked quarter was primarily related to a $0.7 million decrease in gain on sale of investment securities, a $0.7 million decrease in FDIC loss sharing income and a $0.2 million decrease in gain on sale of mortgage loans partially offset by a $0.7 million increase in fees related to the Company's client derivative program.

NON-INTEREST EXPENSE

The Company's non-interest expense was $53.0 million for the third quarter of 2015 compared to $48.8 million for the second quarter of 2015 and $51.4 million for the third quarter of 2014. The $4.2 million increase over the linked quarter was primarily related to $2.6 million of expenses related to the acquisition of Oak Street, $0.7 million related to prepayment of FHLB debt and $0.7 million related to reserve adjustments for litigation-related items which were resolved during the quarter. Non-interest expense for the quarter included approximately $0.9 million related to Oak Street operating expenses subsequent to the closing.

BALANCE SHEET & CAPITAL

Total assets were $7.9 billion, total loans were $5.2 billion and investment securities were $1.9 billion as of September 30, 2015. Total assets increased by $497.2 million, or 26.7% annualized, from the prior quarter and by $527.1 million, or 7.2%, over the prior year, including the impact of the Oak Street acquisition. Total loans increased by $363.3 million, or 29.7% annualized, from the prior quarter and by $433.8 million, or 9.1%, over the prior year, including the impact of the Oak Street acquisition. Investment securities increased by $77.9 million, or 17.2% annualized, from the prior quarter and decreased by $1.0 million, or 0.1%, over the prior year.

Including approximately $212 million of brokered time deposits related to the Oak Street acquisition, total deposits were $6.1 billion as of September 30, 2015, an increase of $365.6 million, or 25.4% annualized, compared to the prior quarter and $548.4 million, or 9.9%, higher than a year ago. Borrowed funds were $883.0 million as of September 30, 2015, compared to $757.1 million as of June 30, 2015 and $972.0 million as of September 30, 2014.

During the quarter, the Company repurchased 148,935 shares at a weighted average price of $18.68 and has repurchased 1,399,835 of the 5,000,000 shares authorized in 2012. As of September 30, 2015, the Company had total shareholders' equity of $813.0 million, an increase of $10.6 million, or 5.3% annualized, over the prior quarter and $39.1 million, or 5.1%, over the prior year.

The Company's regulatory capital ratios remain strong and, as of September 30, 2015, were as follows: leverage ratio of 8.58%, total capital ratio of 13.37%, tier 1 capital ratio of 10.52% and tangible common equity ratio of 7.84%. The Company's tangible book value per share was $9.74 as of September 30, 2015.

ASSET QUALITY

Third quarter provision expense was $2.6 million and the total allowance for loan and lease losses as of September 30, 2015 was $53.3 million. The allowance as a percentage of period-end loans was 1.02% at the end of the third quarter. The balance of the Company's total allowance and loan marks, net of the indemnification asset, was 1.17% of total loans and leases as of September 30, 2015 which represents a 10 bps decline from 1.27% as of June 30, 2015. This change is largely attributable to elevated levels of payoff activity in the covered / formerly covered loan portfolio, the addition of the Oak Street loan portfolio and solid organic loan growth during the third quarter.

For the third quarter, net charge-offs totaled $2.2 million, a decrease of $1.1 million, or 33.0% compared to the linked quarter, and were 0.17% of average loans on an annualized basis. Nonaccrual loans decreased $4.0 million, or 10.0%, to $35.7 million as of September 30, 2015. Total classified assets decreased $11.2 million, or 8.0%, to $128.7 million as of September 30, 2015, primarily due to a decrease in both commercial real estate and covered/formerly covered classified assets.

Teleconference / Webcast Information

First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, October 23, 2015 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (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 at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10074410. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

Press Release and Additional Information on Website

This press release as well as supplemental information and any non-GAAP reconciliations related to this release is available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

About First Financial Bancorp

First Financial Bancorp is a Cincinnati, Ohio based bank holding company. As of September 30, 2015, the Company had $7.9 billion in assets, $5.2 billion in loans, $6.1 billion in deposits and $813.0 million in shareholders’ equity. The Company’s subsidiary, First Financial Bank, N.A., founded in 1863, provides banking and financial services products through its four lines of business: commercial, consumer, wealth management and mortgage. The commercial, consumer and mortgage units provide traditional banking services to business and retail clients. First Financial Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.3 billion in assets under management as of September 30, 2015. The Company’s strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 106 banking centers. Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.

Forward-Looking Statement

Certain statements contained in this release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform 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. These factors include, but are not limited to: economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; 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); management’s ability to effectively execute its business plan; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the Company’s ability to comply with the terms of loss sharing agreements with the FDIC; the effect of changes in accounting policies and practices; and the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as well as its other filings with the SEC, for a more detailed discussion of these risks, uncertainties and other factors that could cause actual results to differ from those discussed in the forward-looking statements. Such forward-looking statements are meaningful only on the date when such statements are made, and the Company 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.

Contact Information

Investors/Analysts Media

Eric Stables Adam Kiefaber

Investor Relations Media Relations

(513) 458-6454 (513) 979-5735

eric.stables@bankatfirst.com adam.kiefaber@bankatfirst.com

Selected Financial Information

September 30, 2015

(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 data)
(Unaudited)

	Three Months Ended,															Nine months ended,
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,
	2015			2015			2015			2014			2014			2015			2014
RESULTS OF OPERATIONS
Net income	$	18,673		$	18,949		$	17,621		$	18,599		$	15,344		$	55,243		$	46,401
Net earnings per share - basic	$	0.31		$	0.31		$	0.29		$	0.31		$	0.26		$	0.90		$	0.80
Net earnings per share - diluted	$	0.30		$	0.31		$	0.29		$	0.30		$	0.26		$	0.89		$	0.79
Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.15		$	0.48		$	0.45

KEY FINANCIAL RATIOS
Return on average assets	0.97		%	1.05		%	0.99		%	1.02		%	0.88		%	1.00		%	0.94		%
Return on average shareholders' equity	9.12		%	9.49		%	9.06		%	9.46		%	8.16		%	9.23		%	8.75		%
Return on average tangible shareholders' equity	12.33		%	11.60		%	11.12		%	11.63		%	10.15		%	12.54		%	11.02		%

Net interest margin	3.61		%	3.56		%	3.61		%	3.67		%	3.66		%	3.59		%	3.73		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.67		%	3.62		%	3.67		%	3.72		%	3.71		%	3.65		%	3.78		%

Ending shareholders' equity as a percent of ending assets	10.32		%	10.87		%	10.98		%	10.86		%	10.52		%	10.32		%	10.52		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	7.84		%	9.08		%	9.16		%	9.02		%	8.71		%	7.84		%	8.71		%
Risk-weighted assets	9.90		%	11.63		%	11.64		%	12.02		%	12.07		%	9.90		%	12.06		%

Average shareholders' equity as a percent of average assets	10.67		%	11.05		%	10.95		%	10.77		%	10.75		%	10.89		%	10.75		%
Average tangible shareholders' equity as a percent of
average tangible assets	8.12		%	9.23		%	9.11		%	8.94		%	8.83		%	8.25		%	8.73		%

Book value per share	$	13.17		$	13.00		$	12.90		$	12.76		$	12.61		$	13.17		$	12.61
Tangible book value per share	$	9.74		$	10.65		$	10.54		$	10.38		$	10.23		$	9.74		$	10.23

Common equity tier 1 ratio ⁽²⁾	10.51		%	12.34		%	12.29		%	12.69		%	12.74		%	10.51		%	12.74		%
Tier 1 ratio ⁽²⁾	10.52		%	12.35		%	12.29		%	12.69		%	12.74		%	10.52		%	12.74		%
Total capital ratio ⁽²⁾	13.37		%	13.31		%	13.27		%	13.71		%	13.80		%	13.37		%	13.80		%
Leverage ratio ⁽²⁾	8.58		%	9.77		%	9.67		%	9.44		%	9.70		%	8.58		%	9.70		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽³⁾	$	5,032,708		$	4,793,471		$	4,770,671		$	4,758,374		$	4,403,591		$	4,866,577		$	4,133,434
FDIC indemnification asset	19,848			20,744			22,112			24,172			28,050			20,893			35,221
Investment securities	1,848,083			1,782,785			1,762,622			1,811,941			1,865,241			1,798,143			1,828,207
Interest-bearing deposits with other banks	37,468			19,960			21,255			22,617			29,433			26,287			14,448
Total earning assets	$	6,938,107		$	6,616,960		$	6,576,660		$	6,617,104		$	6,326,315		$	6,711,900		$	6,011,310
Total assets	$	7,611,389		$	7,243,886		$	7,201,313		$	7,241,869		$	6,937,283		$	7,353,698		$	6,598,894
Noninterest-bearing deposits	$	1,344,049		$	1,325,485		$	1,286,067		$	1,290,754		$	1,179,207		$	1,318,746		$	1,129,107
Interest-bearing deposits	4,615,886			4,446,248			4,361,525			4,372,529			4,041,255			4,475,485			3,857,510
Total deposits	$	5,959,935		$	5,771,733		$	5,647,592		$	5,663,283		$	5,220,462		$	5,794,231		$	4,986,617
Borrowings	$	746,706		$	587,225		$	691,012		$	733,726		$	896,328		$	675,185		$	828,463
Shareholders' equity	$	812,396		$	800,598		$	788,511		$	780,131		$	745,729		$	800,589		$	709,115

CREDIT QUALITY RATIOS ⁽⁴⁾
Allowance to ending loans	1.02		%	1.09		%	1.11		%	1.11		%	0.95		%	1.02		%	0.95		%
Allowance to nonaccrual loans	149.33		%	133.28		%	107.98		%	109.06		%	101.94		%	149.33		%	101.94		%
Allowance to nonperforming loans	95.34		%	88.49		%	82.18		%	82.08		%	77.17		%	95.34		%	77.17		%
Nonperforming loans to total loans	1.07		%	1.23		%	1.36		%	1.35		%	1.24		%	1.07		%	1.24		%
Nonperforming assets to ending loans, plus OREO	1.36		%	1.56		%	1.79		%	1.81		%	1.49		%	1.36		%	1.49		%
Nonperforming assets to total assets	0.90		%	1.03		%	1.18		%	1.21		%	0.90		%	0.90		%	0.90		%
Net charge-offs to average loans (annualized)	0.17		%	0.27		%	0.16		%	0.27		%	0.07		%	0.20		%	0.13		%

(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) September 30, 2015 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

(4) Includes covered and previously covered assets for the three months ended September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014 as FDIC loss sharing coverage expired for the majority of these assets effective October 1, 2014.



FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	Three months ended,								Nine months ended,
	Sep. 30,								Sep. 30,
	2015			2014			% Change		2015			2014			% Change
Interest income
Loans, including fees	$	58,694		$	53,725		9.2	%	$	167,744		$	151,749		10.5	%
Investment securities
Taxable	9,986			10,227			(2.4	)%	28,875			31,019			(6.9	)%
Tax-exempt	1,163			894			30.1	%	3,419			2,500			36.8	%
Total investment securities interest	11,149			11,121			0.3	%	32,294			33,519			(3.7	)%
Other earning assets	(1,168		)	(1,455		)	(19.7	)%	(3,511		)	(4,162		)	(15.6	)%
Total interest income	68,675			63,391			8.3	%	196,527			181,106			8.5	%

Interest expense
Deposits	4,861			4,218			15.2	%	14,302			11,140			28.4	%
Short-term borrowings	374			354			5.6	%	930			975			(4.6	)%
Long-term borrowings	281			456			(38.4	)%	876			1,505			(41.8	)%
Total interest expense	5,516			5,028			9.7	%	16,108			13,620			18.3	%
Net interest income	63,159			58,363			8.2	%	180,419			167,486			7.7	%
Provision for loan and lease losses	2,647			893			196.4	%	7,777			(524		)	(1,584.2	)%
Net interest income after provision for loan and lease losses	60,512			57,470			5.3	%	172,642			168,010			2.8	%

Noninterest income
Service charges on deposit accounts	4,934			5,263			(6.3	)%	14,260			15,172			(6.0	)%
Trust and wealth management fees	3,134			3,207			(2.3	)%	10,042			10,258			(2.1	)%
Bankcard income	2,909			2,859			1.7	%	8,501			8,101			4.9	%
Net gains from sales of loans	1,758			1,660			5.9	%	5,146			2,793			84.2	%
Net gain on sale of investment securities	409			0			100.0	%	1,503			50			2,906.0	%
FDIC loss sharing income	(973		)	(192		)	(406.8	)%	(2,323		)	408			(669.4	)%
Accelerated discount on covered/formerly covered loans	3,820			789			384.2	%	10,006			2,425			312.6	%
Other	4,364			2,925			49.2	%	12,248			7,816			56.7	%
Total noninterest income	20,355			16,511			23.3	%	59,383			47,023			26.3	%

Noninterest expenses
Salaries and employee benefits	27,768			28,686			(3.2	)%	82,160			79,562			3.3	%
Net occupancy	4,510			4,577			(1.5	)%	13,895			14,381			(3.4	)%
Furniture and equipment	2,165			2,265			(4.4	)%	6,537			6,325			3.4	%
Data processing	2,591			4,393			(41.0	)%	8,020			10,021			(20.0	)%
Marketing	810			939			(13.7	)%	2,671			2,555			4.5	%
Communication	531			541			(1.8	)%	1,659			1,726			(3.9	)%
Professional services	4,092			1,568			161.0	%	7,789			4,741			64.3	%
State intangible tax	579			648			(10.6	)%	1,733			1,936			(10.5	)%
FDIC assessments	1,103			1,126			(2.0	)%	3,307			3,334			(0.8	)%
Loss (gain) - other real estate owned	196			(589		)	(133.3	)%	1,089			573			90.1	%
Loss sharing expense	574			1,002			(42.7	)%	1,451			4,036			(64.0	)%
Other	8,073			6,263			28.9	%	19,535			17,182			13.7	%
Total noninterest expenses	52,992			51,419			3.1	%	149,846			146,372			2.4	%
Income before income taxes	27,875			22,562			23.5	%	82,179			68,661			19.7	%
Income tax expense	9,202			7,218			27.5	%	26,936			22,260			21.0	%
Net income	$	18,673		$	15,344		21.7	%	$	55,243		$	46,401		19.1	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.31		$	0.26				$	0.90		$	0.80
Net earnings per share - diluted	$	0.30		$	0.26				$	0.89		$	0.79
Dividends declared per share	$	0.16		$	0.15				$	0.48		$	0.45

Return on average assets	0.97		%	0.88		%			1.00		%	0.94		%
Return on average shareholders' equity	9.12		%	8.16		%			9.23		%	8.75		%

Interest income	$	68,675		$	63,391		8.3	%	$	196,527		$	181,106		8.5	%
Tax equivalent adjustment	1,000			818			22.2	%	2,971			2,278			30.4	%
Interest income - tax equivalent	69,675			64,209			8.5	%	199,498			183,384			8.8	%
Interest expense	5,516			5,028			9.7	%	16,108			13,620			18.3	%
Net interest income - tax equivalent	$	64,159		$	59,181		8.4	%	$	183,390		$	169,764		8.0	%

Net interest margin	3.61		%	3.66		%			3.59		%	3.73		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.67		%	3.71		%			3.65		%	3.78		%

Full-time equivalent employees	1,394			1,395

(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 provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.



FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

				2015
	Third			Second			First						% Change
	Quarter			Quarter			Quarter			YTD			Linked Qtr.
Interest income
Loans, including fees	$	58,694		$	54,586		$	54,464		$	167,744		7.5	%
Investment securities
Taxable	9,986			9,281			9,608			28,875			7.6	%
Tax-exempt	1,163			1,139			1,117			3,419			2.1	%
Total investment securities interest	11,149			10,420			10,725			32,294			7.0	%
Other earning assets	(1,168		)	(1,162		)	(1,181		)	(3,511		)	0.5	%
Total interest income	68,675			63,844			64,008			196,527			7.6	%

Interest expense
Deposits	4,861			4,621			4,820			14,302			5.2	%
Short-term borrowings	374			253			303			930			47.8	%
Long-term borrowings	281			296			299			876			(5.1	)%
Total interest expense	5,516			5,170			5,422			16,108			6.7	%
Net interest income	63,159			58,674			58,586			180,419			7.6	%
Provision for loan and lease losses	2,647			3,070			2,060			7,777			(13.8	)%
Net interest income after provision for loan and lease losses	60,512			55,604			56,526			172,642			8.8	%

Noninterest income
Service charges on deposit accounts	4,934			4,803			4,523			14,260			2.7	%
Trust and wealth management fees	3,134			3,274			3,634			10,042			(4.3	)%
Bankcard income	2,909			2,972			2,620			8,501			(2.1	)%
Net gains from sales of loans	1,758			1,924			1,464			5,146			(8.6	)%
Net gain on sale of investment securities	409			1,094			0			1,503			100.0	%
FDIC loss sharing income	(973		)	(304		)	(1,046		)	(2,323		)	220.1	%
Accelerated discount on covered/formerly covered loans	3,820			4,094			2,092			10,006			(6.7	)%
Other	4,364			3,558			4,326			12,248			22.7	%
Total noninterest income	20,355			21,415			17,613			59,383			(4.9	)%

Noninterest expenses
Salaries and employee benefits	27,768			27,451			26,941			82,160			1.2	%
Net occupancy	4,510			4,380			5,005			13,895			3.0	%
Furniture and equipment	2,165			2,219			2,153			6,537			(2.4	)%
Data processing	2,591			2,657			2,772			8,020			(2.5	)%
Marketing	810			973			888			2,671			(16.8	)%
Communication	531			558			570			1,659			(4.8	)%
Professional services	4,092			1,727			1,970			7,789			136.9	%
State intangible tax	579			577			577			1,733			0.3	%
FDIC assessments	1,103			1,114			1,090			3,307			(1.0	)%
Loss (gain) - other real estate owned	196			419			474			1,089			(53.2	)%
Loss sharing expense	574			576			301			1,451			(0.3	)%
Other	8,073			6,135			5,327			19,535			31.6	%
Total noninterest expenses	52,992			48,786			48,068			149,846			8.6	%
Income before income taxes	27,875			28,233			26,071			82,179			(1.3	)%
Income tax expense	9,202			9,284			8,450			26,936			(0.9	)%
Net income	$	18,673		$	18,949		$	17,621		$	55,243		(1.5	)%

ADDITIONAL DATA
Net earnings per share - basic	$	0.31		$	0.31		$	0.29		$	0.90
Net earnings per share - diluted	$	0.30		$	0.31		$	0.29		$	0.89
Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.48

Return on average assets	0.97		%	1.05		%	0.99		%	1.00		%
Return on average shareholders' equity	9.12		%	9.49		%	9.06		%	9.23		%

Interest income	$	68,675		$	63,844		$	64,008		$	196,527		7.6	%
Tax equivalent adjustment	1,000			988			983			2,971			1.2	%
Interest income - tax equivalent	69,675			64,832			64,991			199,498			7.5	%
Interest expense	5,516			5,170			5,422			16,108			6.7	%
Net interest income - tax equivalent	$	64,159		$	59,662		$	59,569		$	183,390		7.5	%

Net interest margin	3.61		%	3.56		%	3.61		%	3.59		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.67		%	3.62		%	3.67		%	3.65		%

Full-time equivalent employees	1,394			1,366			1,353

(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 provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.



FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	2014
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans, including fees	$	57,087		$	53,725		$	48,877		$	49,147		$	208,836
Investment securities
Taxable	9,905			10,227			10,355			10,437			40,924
Tax-exempt	1,060			894			796			810			3,560
Total investment securities interest	10,965			11,121			11,151			11,247			44,484
Other earning assets	(1,299		)	(1,455		)	(1,301		)	(1,406		)	(5,461		)
Total interest income	66,753			63,391			58,727			58,988			247,859

Interest expense
Deposits	5,013			4,218			3,606			3,316			16,153
Short-term borrowings	293			354			292			329			1,268
Long-term borrowings	308			456			525			524			1,813
Total interest expense	5,614			5,028			4,423			4,169			19,234
Net interest income	61,139			58,363			54,304			54,819			228,625
Provision for loan and lease losses	2,052			893			(384		)	(1,033		)	1,528
Net interest income after provision for loan and lease losses	59,087			57,470			54,688			55,852			227,097

Noninterest income
Service charges on deposit accounts	5,102			5,263			5,137			4,772			20,274
Trust and wealth management fees	3,376			3,207			3,305			3,746			13,634
Bankcard income	2,639			2,859			2,809			2,433			10,740
Net gains from sales of loans	1,571			1,660			737			396			4,364
Net gain on sale of investment securities	20			0			0			50			70
FDIC loss sharing income	(43		)	(192		)	1,108			(508		)	365
Accelerated discount on covered/formerly covered loans	1,759			789			621			1,015			4,184
Other	2,518			2,925			2,620			2,271			10,334
Total noninterest income	16,942			16,511			16,337			14,175			63,965

Noninterest expenses
Salaries and employee benefits	28,140			28,686			25,615			25,261			107,702
Net occupancy	4,806			4,577			4,505			5,299			19,187
Furniture and equipment	2,229			2,265			1,983			2,077			8,554
Data processing	2,942			4,393			2,770			2,858			12,963
Marketing	1,048			939			830			786			3,603
Communication	551			541			562			623			2,277
Professional services	1,429			1,568			1,449			1,724			6,170
State intangible tax	175			648			644			644			2,111
FDIC assessments	1,128			1,126			1,074			1,134			4,462
Loss (gain) - other real estate owned	289			(589		)	711			451			862
Loss sharing expense	650			1,002			1,465			1,569			4,686
Other	6,275			6,263			5,503			5,416			23,457
Total noninterest expenses	49,662			51,419			47,111			47,842			196,034
Income before income taxes	26,367			22,562			23,914			22,185			95,028
Income tax expense	7,768			7,218			7,961			7,081			30,028
Net income	$	18,599		$	15,344		$	15,953		$	15,104		$	65,000

ADDITIONAL DATA
Net earnings per share - basic	$	0.31		$	0.26		$	0.28		$	0.26		$	1.11
Net earnings per share - diluted	$	0.30		$	0.26		$	0.28		$	0.26		$	1.09
Dividends declared per share	$	0.16		$	0.15		$	0.15		$	0.15		$	0.61

Return on average assets	1.02		%	0.88		%	0.99		%	0.96		%	0.96		%
Return on average shareholders' equity	9.46		%	8.16		%	9.19		%	8.95		%	8.94		%

Interest income	$	66,753		$	63,391		$	58,727		$	58,988		$	247,859
Tax equivalent adjustment	946			818			758			702			3,224
Interest income - tax equivalent	67,699			64,209			59,485			59,690			251,083
Interest expense	5,614			5,028			4,423			4,169			19,234
Net interest income - tax equivalent	$	62,085		$	59,181		$	55,062		$	55,521		$	231,849

Net interest margin	3.67		%	3.66		%	3.70		%	3.82		%	3.71		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.72		%	3.71		%	3.76		%	3.87		%	3.76		%

Full-time equivalent employees	1,369			1,395			1,296			1,286

(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 provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.



FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			% Change		% Change
	2015			2015			2015			2014			2014			Linked Qtr.		Comparable Qtr.
ASSETS
Cash and due from banks	$	112,298		$	116,318		$	111,011		$	110,122		$	121,360		(3.5	)%	(7.5	)%
Interest-bearing deposits with other banks	24,191			41,027			25,350			22,630			22,365			(41.0	)%	8.2	%
Investment securities available-for-sale	1,069,667			955,764			892,169			840,468			929,594			11.9	%	15.1	%
Investment securities held-to-maturity	756,035			791,839			839,666			867,996			900,521			(4.5	)%	(16.0	)%
Other investments	53,431			53,585			53,393			52,626			49,986			(0.3	)%	6.9	%
Loans held for sale	26,287			21,151			14,937			11,005			16,816			24.3	%	56.3	%
Loans
Commercial	1,637,467			1,315,087			1,298,874			1,315,114			1,328,526			24.5	%	23.3	%
Real estate - construction	276,240			229,256			227,969			197,571			195,524			20.5	%	41.3	%
Real estate - commercial	2,169,662			2,171,806			2,120,084			2,140,667			2,135,968			(0.1	)%	1.6	%
Real estate - residential	506,653			506,391			496,852			501,894			498,873			0.1	%	1.6	%
Installment	39,974			43,073			43,798			47,320			51,131			(7.2	)%	(21.8	)%
Home equity	463,629			463,222			456,278			458,627			460,957			0.1	%	0.6	%
Credit card	39,759			39,216			37,886			38,475			38,042			1.4	%	4.5	%
Lease financing	82,679			84,723			81,796			77,567			73,216			(2.4	)%	12.9	%
Total loans	5,216,063			4,852,774			4,763,537			4,777,235			4,782,237			7.5	%	9.1	%
Less
Allowance for loan and lease losses	53,332			52,876			53,076			52,858			53,989			0.9	%	(1.2	)%
Net loans	5,162,731			4,799,898			4,710,461			4,724,377			4,728,248			7.6	%	9.2	%
Premises and equipment	139,020			139,170			140,477			141,381			141,851			(0.1	)%	(2.0	)%
Goodwill and other intangibles	211,732			145,465			145,586			145,853			146,000			45.6	%	45.0	%
FDIC indemnification asset	18,931			20,338			20,397			22,666			24,160			(6.9	)%	(21.6	)%
Accrued interest and other assets	306,210			298,817			292,349			278,697			272,568			2.5	%	12.3	%
Total Assets	$	7,880,533		$	7,383,372		$	7,245,796		$	7,217,821		$	7,353,469		6.7	%	7.2	%

LIABILITIES
Deposits
Interest-bearing demand	$	1,330,673		$	1,175,219		$	1,214,882		$	1,225,378		$	1,214,726		13.2	%	9.5	%
Savings	1,979,627			1,947,566			1,922,815			1,889,473			1,827,590			1.6	%	8.3	%
Time	1,440,223			1,262,881			1,277,291			1,255,364			1,247,334			14.0	%	15.5	%
Total interest-bearing deposits	4,750,523			4,385,666			4,414,988			4,370,215			4,289,650			8.3	%	10.7	%
Noninterest-bearing	1,330,905			1,330,149			1,299,602			1,285,527			1,243,367			0.1	%	7.0	%
Total deposits	6,081,428			5,715,815			5,714,590			5,655,742			5,533,017			6.4	%	9.9	%
Federal funds purchased and securities sold
under agreements to repurchase	62,317			68,349			68,142			103,192			113,303			(8.8	)%	(45.0	)%
FHLB short-term borrowings	701,200			641,700			523,500			558,200			806,000			9.3	%	(13.0	)%
Total short-term borrowings	763,517			710,049			591,642			661,392			919,303			7.5	%	(16.9	)%
Long-term debt	119,515			47,084			47,598			48,241			52,656			153.8	%	127.0	%
Total borrowed funds	883,032			757,133			639,240			709,633			971,959			16.6	%	(9.1	)%
Accrued interest and other liabilities	103,061			108,041			96,224			68,369			74,581			(4.6	)%	38.2	%
Total Liabilities	7,067,521			6,580,989			6,450,054			6,433,744			6,579,557			7.4	%	7.4	%

SHAREHOLDERS' EQUITY
Common stock	570,025			571,501			570,623			574,643			574,209			(0.3	)%	(0.7	)%
Retained earnings	378,258			369,462			360,390			352,893			344,118			2.4	%	9.9	%
Accumulated other comprehensive loss	(17,219		)	(20,715		)	(17,054		)	(21,409		)	(20,888		)	(16.9	)%	(17.6	)%
Treasury stock, at cost	(118,052		)	(117,865		)	(118,217		)	(122,050		)	(123,527		)	0.2	%	(4.4	)%
Total Shareholders' Equity	813,012			802,383			795,742			784,077			773,912			1.3	%	5.1	%
Total Liabilities and Shareholders' Equity	$	7,880,533		$	7,383,372		$	7,245,796		$	7,217,821		$	7,353,469		6.7	%	7.2	%



FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)

	Quarterly Averages															Year-to-Date Averages
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			September 30,
	2015			2015			2015			2014			2014			2015			2014
ASSETS
Cash and due from banks	$	114,279		$	114,024		$	112,841		$	124,216		$	125,528		$	113,720		$	122,693
Federal funds sold	0			0			0			0			8,795			0			2,964
Interest-bearing deposits with other banks	37,468			19,960			21,255			22,617			20,638			26,287			11,484
Investment securities	1,848,083			1,782,785			1,762,622			1,811,941			1,865,241			1,798,143			1,828,207
Loans held for sale	15,185			9,292			8,606			11,774			15,357			11,052			9,620
Loans
Commercial	1,464,508			1,318,408			1,300,869			1,282,752			1,221,637			1,361,861			1,157,248
Real estate - construction	259,972			226,314			215,380			192,626			154,515			234,052			116,603
Real estate - commercial	2,164,917			2,117,450			2,129,434			2,158,336			1,927,003			2,137,397			1,802,243
Real estate - residential	500,544			497,350			496,451			493,895			475,510			498,130			450,646
Installment	42,008			43,393			45,376			49,356			49,958			43,580			49,844
Home equity	462,283			459,414			458,083			456,494			444,745			459,942			430,527
Credit card	39,991			39,272			38,409			38,966			38,381			39,230			37,704
Lease financing	83,300			82,578			78,063			74,175			76,485			81,333			78,999
Total loans	5,017,523			4,784,179			4,762,065			4,746,600			4,388,234			4,855,525			4,123,814
Less
Allowance for loan and lease losses	54,398			54,662			53,648			54,656			55,697			54,239			57,560
Net loans	4,963,125			4,729,517			4,708,417			4,691,944			4,332,537			4,801,286			4,066,254
Premises and equipment	139,457			140,117			141,153			141,871			136,956			140,236			136,035
Goodwill and other intangibles	179,333			145,500			145,689			145,872			125,894			156,964			109,146
FDIC indemnification asset	19,848			20,744			22,112			24,172			28,050			20,893			35,221
Accrued interest and other assets	294,611			281,947			278,618			267,462			278,287			285,117			277,270
Total Assets	$	7,611,389		$	7,243,886		$	7,201,313		$	7,241,869		$	6,937,283		$	7,353,698		$	6,598,894

LIABILITIES
Deposits
Interest-bearing demand	$	1,230,621		$	1,220,391		$	1,176,263		$	1,217,852		$	1,135,126		$	1,209,291		$	1,137,540
Savings	2,015,373			1,950,127			1,914,723			1,904,568			1,782,472			1,960,443			1,706,845
Time	1,369,892			1,275,730			1,270,539			1,250,109			1,123,657			1,305,751			1,013,125
Total interest-bearing deposits	4,615,886			4,446,248			4,361,525			4,372,529			4,041,255			4,475,485			3,857,510
Noninterest-bearing	1,344,049			1,325,485			1,286,067			1,290,754			1,179,207			1,318,746			1,129,107
Total deposits	5,959,935			5,771,733			5,647,592			5,663,283			5,220,462			5,794,231			4,986,617
Federal funds purchased and securities sold
under agreements to repurchase	68,505			67,664			77,269			119,712			125,094			71,114			119,823
FHLB short-term borrowings	606,618			472,295			565,918			564,062			710,879			548,426			648,452
Total short-term borrowings	675,123			539,959			643,187			683,774			835,973			619,540			768,275
Long-term debt	71,583			47,266			47,825			49,952			60,355			55,645			60,188
Total borrowed funds	746,706			587,225			691,012			733,726			896,328			675,185			828,463
Accrued interest and other liabilities	92,352			84,330			74,198			64,729			74,764			83,693			74,699
Total Liabilities	6,798,993			6,443,288			6,412,802			6,461,738			6,191,554			6,553,109			5,889,779

SHAREHOLDERS' EQUITY
Common stock	570,723			571,078			573,932			574,588			574,190			571,899			574,572
Retained earnings	378,160			365,847			355,848			347,435			340,680			366,700			332,891
Accumulated other comprehensive loss	(19,725		)	(18,242		)	(20,163		)	(18,841		)	(20,969		)	(19,375		)	(25,106		)
Treasury stock, at cost	(116,762		)	(118,085		)	(121,106		)	(123,051		)	(148,172		)	(118,635		)	(173,242		)
Total Shareholders' Equity	812,396			800,598			788,511			780,131			745,729			800,589			709,115
Total Liabilities and Shareholders' Equity	$	7,611,389		$	7,243,886		$	7,201,313		$	7,241,869		$	6,937,283		$	7,353,698		$	6,598,894



FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS ⁽¹⁾
(Dollars in thousands)
(Unaudited)

	Quarterly Averages															Year-to-Date Averages
	September 30, 2015					June 30, 2015					September 30, 2014					September 30, 2015					September 30, 2014
	Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield
Earning assets
Investments:
Investment securities	$	1,848,083		2.39	%	$	1,782,785		2.34	%	$	1,865,241		2.37	%	$	1,798,143		2.40	%	$	1,828,207		2.45	%
Interest-bearing deposits with other banks	37,468			0.25	%	19,960			0.26	%	29,433			0.42	%	26,287			0.26	%	14,448			0.49	%
Gross loans ⁽²⁾	5,052,556			4.52	%	4,814,215			4.45	%	4,431,641			4.68	%	4,887,470			4.49	%	4,168,655			4.73	%
Total earning assets	6,938,107			3.93	%	6,616,960			3.87	%	6,326,315			3.98	%	6,711,900			3.91	%	6,011,310			4.03	%

Nonearning assets
Allowance for loan and lease losses	(54,398		)			(54,662		)			(55,697		)			(54,239		)			(57,560		)
Cash and due from banks	114,279					114,024					125,528					113,720					122,693
Accrued interest and other assets	613,401					567,564					541,137					582,317					522,451
Total assets	$	7,611,389				$	7,243,886				$	6,937,283				$	7,353,698				$	6,598,894

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	1,230,621		0.09	%	$	1,220,391		0.08	%	$	1,135,126		0.11	%	$	1,209,291		0.08	%	$	1,137,540		0.11	%
Savings	2,015,373			0.19	%	1,950,127			0.19	%	1,782,472			0.26	%	1,960,443			0.22	%	1,706,845			0.23	%
Time	1,369,892			1.05	%	1,275,730			1.08	%	1,123,657			0.97	%	1,305,751			1.07	%	1,013,125			0.96	%
Total interest-bearing deposits	4,615,886			0.42	%	4,446,248			0.42	%	4,041,255			0.41	%	4,475,485			0.43	%	3,857,510			0.39	%
Borrowed funds
Short-term borrowings	675,123			0.22	%	539,959			0.19	%	835,973			0.17	%	619,540			0.20	%	768,275			0.17	%
Long-term debt	71,583			1.56	%	47,266			2.51	%	60,355			3.00	%	55,645			2.10	%	60,188			3.34	%
Total borrowed funds	746,706			0.35	%	587,225			0.37	%	896,328			0.36	%	675,185			0.36	%	828,463			0.40	%
Total interest-bearing liabilities	5,362,592			0.41	%	5,033,473			0.41	%	4,937,583			0.40	%	5,150,670			0.42	%	4,685,973			0.39	%

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	1,344,049					1,325,485					1,179,207					1,318,746					1,129,107
Other liabilities	92,352					84,330					74,764					83,693					74,699
Shareholders' equity	812,396					800,598					745,729					800,589					709,115
Total liabilities & shareholders' equity	$	7,611,389				$	7,243,886				$	6,937,283				$	7,353,698				$	6,598,894

Net interest income ⁽¹⁾	$	63,159				$	58,674				$	58,363				$	180,419				$	167,486
Net interest spread ⁽¹⁾				3.52	%				3.46	%				3.58	%				3.49	%				3.64	%
Net interest margin ⁽¹⁾				3.61	%				3.56	%				3.66	%				3.59	%				3.73	%


⁽¹⁾ Not tax equivalent.
⁽²⁾ Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.



FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS ⁽¹⁾
(Dollars in thousands)
(Unaudited)


	Linked Qtr. Income Variance								Comparable Qtr. Income Variance									Year-to-Date Income Variance
	Rate			Volume		Total			Rate			Volume			Total			Rate			Volume			Total
Earning assets
Investment securities	$	218		$	511	$	729		$	132		$	(104	)	$	28		$	(685	)	$	(540	)	$	(1,225	)
Interest-bearing deposits with other banks	0			11		11			(12		)	5			(7		)	(25		)	23			(2		)
Gross loans ⁽²⁾	783			3,308		4,091			(1,803		)	7,066			5,263			(7,499		)	24,147			16,648
Total earning assets	1,001			3,830		4,831			(1,683		)	6,967			5,284			(8,209		)	23,630			15,421

Interest-bearing liabilities
Total interest-bearing deposits	$	10		$	230	$	240		$	38		$	605		$	643		$	1,187		$	1,975		$	3,162
Borrowed funds
Short-term borrowings	43			78		121			109			(89		)	20			178			(223		)	(45		)
Long-term debt	(112		)	97		(15		)	(219		)	44			(175		)	(557		)	(72		)	(629		)
Total borrowed funds	(69		)	175		106			(110		)	(45		)	(155		)	(379		)	(295		)	(674		)
Total interest-bearing liabilities	(59		)	405		346			(72		)	560			488			808			1,680			2,488
Net interest income ⁽¹⁾	$	1,060		$	3,425	$	4,485		$	(1,611	)	$	6,407		$	4,796		$	(9,017	)	$	21,950		$	12,933


⁽¹⁾ Not tax equivalent.
⁽²⁾ Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.



FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(Dollars in thousands)
(Unaudited)

																Nine months ended
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,			Sep. 30,
	2015 ⁽²⁾			2015 ⁽²⁾			2015 ⁽²⁾			2014 ⁽²⁾			2014 ⁽³⁾			2015 ⁽²⁾			2014 ⁽³⁾
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	52,876		$	53,076		$	52,858		$	53,989		$	42,027		$	52,858		$	43,829
Provision for loan and lease losses	2,647			3,070			2,060			2,052			1,093			7,777			2,281
Gross charge-offs
Commercial	536			510			1,481			130			83			2,527			1,310
Real estate - construction	85			0			0			0			0			85			0
Real estate - commercial	941			2,515			208			385			702			3,664			1,944
Real estate - residential	101			250			314			221			161			665			701
Installment	124			12			131			78			63			267			205
Home equity	322			163			700			349			469			1,185			1,396
Other	276			237			294			287			338			807			871
Covered / formerly covered loans	1,577			1,585			1,916			4,318			*			5,078			*
Total gross charge-offs	3,962			5,272			5,044			5,768			1,816			14,278			6,427
Recoveries
Commercial	357			185			44			75			566			586			1,185
Real estate - construction	0			10			29			0			0			39			0
Real estate - commercial	444			179			354			423			323			977			771
Real estate - residential	87			23			64			29			34			174			161
Installment	59			44			60			45			46			163			173
Home equity	195			129			154			45			46			478			186
Other	52			71			45			111			135			168			295
Covered / formerly covered loans	577			1,361			2,452			1,857			*			4,390			*
Total recoveries	1,771			2,002			3,202			2,585			1,150			6,975			2,771
Total net charge-offs	2,191			3,270			1,842			3,183			666			7,303			3,656
Ending allowance for loan and lease losses	$	53,332		$	52,876		$	53,076		$	52,858		$	42,454		$	53,332		$	42,454

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial	0.05		%	0.10		%	0.45		%	0.02		%	(0.16		)%	0.19		%	0.01		%
Real estate - construction	0.13		%	(0.02		)%	(0.05		)%	0.00		%	0.00		%	0.03		%	0.00		%
Real estate - commercial	0.10		%	0.48		%	(0.03		)%	(0.01		)%	0.09		%	0.18		%	0.10		%
Real estate - residential	0.01		%	0.21		%	0.24		%	0.18		%	0.13		%	0.15		%	0.19		%
Installment	0.65		%	(0.32		)%	0.68		%	0.28		%	0.15		%	0.34		%	0.09		%
Home equity	0.12		%	0.03		%	0.53		%	0.29		%	0.42		%	0.23		%	0.42		%
Other	0.74		%	0.55		%	0.88		%	0.63		%	0.72		%	0.72		%	0.67		%
Covered/formerly covered loans	1.60		%	0.33		%	(0.74		)%	3.06		%	*			0.34		%	*
Total net charge-offs	0.17		%	0.27		%	0.16		%	0.27		%	0.07		%	0.20		%	0.13		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans ⁽¹⁾
Commercial	$	7,191		$	6,683		$	6,926		$	5,817		$	6,486		$	7,191		$	6,486
Real estate - construction	79			223			223			223			223			79			223
Real estate - commercial	17,228			21,186			29,925			27,752			25,262			17,228			25,262
Real estate - residential	4,940			5,257			6,100			7,241			6,696			4,940			6,696
Installment	321			305			278			443			398			321			398
Home equity	2,702			2,735			2,462			3,064			2,581			2,702			2,581
Lease financing	0			0			0			0			0			0			0
Covered /formerly covered loans	3,252			3,284			3,239			3,929			*			3,252			*
Nonaccrual loans	35,713			39,673			49,153			48,469			41,646			35,713			41,646
Accruing troubled debt restructurings (TDRs)	20,226			20,084			15,429			15,928			13,369			20,226			13,369
Total nonperforming loans	55,939			59,757			64,582			64,397			55,015			55,939			55,015
Other real estate owned (OREO)	15,187			16,401			20,906			22,674			11,316			15,187			11,316
Total nonperforming assets	71,126			76,158			85,488			87,071			66,331			71,126			66,331
Accruing loans past due 90 days or more	58			70			85			216			249			58			249
Total underperforming assets	$	71,184		$	76,228		$	85,573		$	87,287		$	66,580		$	71,184		$	66,580
Classified assets	$	95,597		$	106,280		$	109,090		$	109,122		$	105,914		$	95,597		$	105,914
Covered/formerly covered classified assets	33,110			33,651			44,727			45,682			*			33,110			*
Total classified assets	$	128,707		$	139,931		$	153,817		$	154,804		$	105,914		$	128,707		$	105,914

CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans	149.33		%	133.28		%	107.98		%	109.06		%	101.94		%	149.33		%	101.94		%
Nonperforming loans	95.34		%	88.49		%	82.18		%	82.08		%	77.17		%	95.34		%	77.17		%
Total ending loans	1.02		%	1.09		%	1.11		%	1.11		%	0.95		%	1.02		%	0.95		%
Allowance and loan marks, net of indemnification asset, to total loans	1.17		%	1.27		%	1.43		%	1.51		%	*			1.17		%	*
Nonperforming loans to total loans	1.07		%	1.23		%	1.36		%	1.35		%	1.24		%	1.07		%	1.24		%
Nonperforming assets to
Ending loans, plus OREO	1.36		%	1.56		%	1.79		%	1.81		%	1.49		%	1.36		%	1.49		%
Total assets	0.90		%	1.03		%	1.18		%	1.21		%	0.90		%	0.90		%	0.90		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.97		%	1.15		%	1.46		%	1.48		%	1.19		%	0.97		%	1.19		%
Total assets	0.65		%	0.76		%	0.97		%	0.99		%	0.72		%	0.65		%	0.72		%

(1) Nonaccrual loans include nonaccrual TDRs of $13.6 million, $14.1 million, $20.3 million, $12.3 million, and $13.2 million, as of September 30, 2015, June 30. 2015, March 31, 2015, December 31, 2014, and September 30, 2014, respectively.
(2) Includes covered and formerly covered assets for the three months ended September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014 as FDIC loss sharing coverage expired for the majority of these assets effective October 1, 2014.
(3) Excludes covered assets.
* Amounts reclassified in the fourth quarter of 2014 due to the expiration of FDIC loss sharing coverage on non-single family assets effective October 1, 2014.



FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																Nine months ended,
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,			Sep. 30,
	2015			2015			2015			2014			2014			2015			2014
PER COMMON SHARE
Market Price
High	$	19.69		$	18.55		$	18.30		$	19.00		$	17.66		$	19.69		$	18.43
Low	$	17.55		$	16.68		$	16.52		$	15.34		$	15.83		$	16.52		$	15.51
Close	$	19.08		$	17.94		$	17.81		$	18.59		$	15.83		$	19.08		$	15.83

Average shares outstanding - basic	61,135,749			61,115,802			61,013,489			60,905,095			59,403,109			61,088,794			57,907,203
Average shares outstanding - diluted	61,987,795			61,915,294			61,731,844			61,627,518			60,112,932			61,858,724			58,639,394
Ending shares outstanding	61,713,633			61,707,847			61,686,887			61,456,547			61,368,473			61,713,633			61,368,473

Total shareholders' equity	$	813,012		$	802,383		$	795,742		$	784,077		$	773,912		$	813,012		$	773,912

REGULATORY CAPITAL ⁽¹⁾	Preliminary															Preliminary
Common equity tier 1 capital	$	638,574		$	697,139		$	686,191		$	673,851		$	662,504		$	638,574		$	662,504
Common equity tier 1 capital ratio	10.51		%	12.34		%	12.29		%	12.69		%	12.74		%	10.51		%	12.74		%
Tier 1 capital	$	638,678		$	697,243		$	686,295		$	673,955		$	662,608		$	638,678		$	662,608
Tier 1 ratio	10.52		%	12.35		%	12.29		%	12.69		%	12.74		%	10.52		%	12.74		%
Total capital	$	812,029		$	751,818		$	740,967		$	728,284		$	717,823		$	812,029		$	717,823
Total capital ratio	13.37		%	13.31		%	13.27		%	13.71		%	13.80		%	13.37		%	13.80		%
Total capital in excess of minimum
requirement	$	326,117		$	300,006		$	294,290		$	303,358		$	301,653		$	326,117		$	301,653
Total risk-weighted assets	$	6,073,899		$	5,647,658		$	5,583,461		$	5,311,573		$	5,202,123		$	6,073,899		$	5,202,123
Leverage ratio	8.58		%	9.77		%	9.67		%	9.44		%	9.70		%	8.58		%	9.70		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	10.32		%	10.87		%	10.98		%	10.86		%	10.52		%	10.32		%	10.52		%
Ending tangible shareholders' equity to ending tangible assets	7.84		%	9.08		%	9.16		%	9.02		%	8.71		%	7.84		%	8.71		%
Average shareholders' equity to average assets	10.67		%	11.05		%	10.95		%	10.77		%	10.75		%	10.89		%	10.75		%
Average tangible shareholders' equity to average tangible assets	8.12		%	9.23		%	9.11		%	8.94		%	8.83		%	8.25		%	8.73		%

REPURCHASE PROGRAM ⁽²⁾
Shares repurchased	148,935			0			0			0			0			148,935			40,255
Average share repurchase price	$	18.68		N/A			N/A			N/A			N/A			$	18.68		$	17.32
Total cost of shares repurchased	$	2,783		N/A			N/A			N/A			N/A			$	2,783		$	697

⁽¹⁾ 2015 amounts and ratios are calculated under the Basel III standardized approach
⁽²⁾Represents share repurchases as part of publicly announced plans.
N/A = Not applicable

FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - October 22, 2015

Attached files

FIRST FINANCIAL BANCORP /OH/ Reports