Item 1.01                      Entry into a Material Definitive Agreement

First Financial Bank, N.A. (“First Financial”), the wholly owned subsidiary of First Financial Bancorp (“Bancorp”), entered into a Second Amendment to Purchase and Assumption Agreement with the Federal Deposit Insurance Corporation (the “FDIC”), as receiver for Irwin Union Bank and Trust Company (“Irwin Union Bank”) and the FDIC regarding the assumption of all deposits and acquisition of certain assets and other liabilities of Irwin Union Bank.  A copy of the second amendment effective September 18, 2009 is attached hereto as Exhibit 2.1.

Item 2.02                      Results of Operations and Financial Condition.

On November 5, 2009, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the third quarter of 2009.  A copy of the earnings press release is attached as Exhibit 99.1.

On November 6, 2009, First Financial Bancorp. will hold an earnings call to discuss the results of operations and financial condition for the third quarter of 2009.  Copies of the slide presentation that will be used in the call are attached as Exhibit 99.2.

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

Below is a table showing “net interest income” calculated and presented in accordance with GAAP and the adjustments made to arrive at the non-GAAP financial measure “net interest income – tax equivalent.”  The table also shows “net interest margin” calculated and presented in accordance with GAAP and the method used to arrive at the non-GAAP financial measure “net interest margin (fully tax equivalent).”

   
Three Months Ended
    
Nine Months Ended
  
   
Sep. 30,
    
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sep. 30,
    
Sep. 30,
  
   
   
   
   
   
   
   
 
         
(Dollars in thousands)
              
Net interest income
   $ 37,455     $ 31,209     $ 30,928     $ 30,129     $ 29,410     $ 99,592     $ 86,073  
Tax equivalent adjustment
                                         1,448  
   Net interest income - tax equivalent
   $ 37,755     $ 31,516     $ 31,291     $ 30,489     $ 29,834     $ 100,562     $ 87,521  
                                                         
Average earning assets
     4,144,429       3,483,796       3,482,645       3,267,525       3,180,290       3,708,643       3,087,925  
                                                         
Net interest margin*
     3.59 %     3.60 %     3.61 %     3.67 %     3.68 %     3.59 %     3.72 %
Net interest margin (fully tax equivalent)*
     3.61 %     3.64 %     3.65 %     3.71 %     3.73 %     3.63 %     3.79 %
                                                         
* Margins are calculated using net interest income annualized divided by average earning assets.
                          

The earnings press release also includes some non-GAAP ratios in the “Consolidated Financial Highlights” page.  These ratios are:  (1) Return on average tangible common shareholders' equity; (2) Ending tangible common equity as a percent of ending tangible assets; (3) Ending tangible common equity as a percent of risk-weighted assets; (4) Average tangible common equity as a percent of average tangible assets; and (5) Tangible book value per common share.  The Ending tangible common equity as a percent of ending tangible assets and Average tangible common equity as a percent of average tangible assets are also shown in the “Regulatory Capital” section of the “Capital Adequacy” page in the earnings release.  The following table provides a reconciliation of these ratios to GAAP.  The company considers these critical metrics with which to analyze banks.  The ratios have been included in the earnings press release to facilitate a better understanding of the company’s capital structure and financial condition.
 
 
 
 

 
   
Three Months Ended
    
Nine Months Ended
  
   
Sep. 30,
    
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sep. 30,
    
Sep. 30,
  
   
   
   
   
   
   
   
 
         
(Dollars in thousands, except per share data)
              
Net income available to common shareholders (a)
   $ 225,187     $     $ 5,157     $ 2,084     $ 5,732     $ 230,794     $ 20,878  
                                                         
Average total shareholders' equity
   $ 459,809     $ 379,944     $ 350,857     $ 286,582     $ 276,594     $ 397,269     $ 277,401  
Less:
                                                        
Average Preferred stock
     (78,221 )     (78,126 )     (78,038 )     (7,805 )     -       (78,129 )     -  
Goodwill
     (46,931 )     (28,261 )     (28,261 )     (28,261 )     (28,261 )     (46,931 )     (28,261 )
Intangible assets
     (7,105 )     (465 )     (500 )     (1,002 )     (872 )     (7,105 )     (872 )
Average tangible common equity (b)
     327,552       273,092       244,058       249,514       247,461       265,104       248,268  
Add back: Average preferred stock
     78,221       78,126       78,038       7,805             78,129        
Average tangible shareholders' equity (c)
     405,773       351,218       322,096       257,319       247,461       343,233       248,268  
                                                         
Total shareholders' equity
     671,247       446,636       353,760       348,327       277,220       671,247       277,220  
Less:
                                                        
Preferred stock
     (78,271 )     (78,173 )     (78,075 )     (78,019 )     -       (78,271 )     -  
Goodwill
     (46,931 )     (28,261 )     (28,261 )     (28,261 )     (28,261 )     (46,931 )     (28,261 )
Intangible assets
     (7,105 )     (465 )     (500 )     (1,002 )     (872 )     (7,105 )     (872 )
Tangible common equity (d)
     538,940       339,737       246,924       241,045       248,087       538,940       248,087  
Add back: Preferred stock
     78,271       78,173       78,075       78,019             78,271        
Tangible shareholders' equity (e)
     617,211       417,910       324,999       319,064       248,087       617,211       248,087  
                                                         
Total assets
     7,259,902       3,783,353       3,809,196       3,699,142       3,511,676       7,259,902       3,511,676  
Less:
                                                        
Goodwill
     (46,931 )     (28,261 )     (28,261 )     (28,261 )     (28,261 )     (46,931 )     (28,261 )
Intangible assets
     (7,105 )     (465 )     (500 )     (1,002 )     (872 )     (7,105 )     (872 )
Ending tangible assets (f)
     7,205,866       3,754,627       3,780,435       3,669,879       3,482,543       7,205,866       3,482,543  
                                                         
Risk-weighted assets (g)
     4,020,401       3,076,042       2,951,721       2,878,548       2,800,753       4,020,401       2,800,753  
                                                         
Total average assets
     4,496,327       3,784,458       3,777,510       3,566,051       3,476,648       4,022,064       3,379,343  
Less:
                                                        
Goodwill
     (46,931 )     (28,261 )     (28,261 )     (28,261 )     (28,261 )     (46,931 )     (28,261 )
Intangible assets
     (7,105 )     (465 )     (500 )     (1,002 )     (872 )     (7,105 )     (872 )
Average tangible assets (h)
     4,442,291       3,755,732       3,748,749       3,536,788       3,447,515       3,968,028       3,350,210  
                                                         
Ending common shares outstanding (i)
     51,431,422       51,434,346       37,474,422       37,481,201       37,476,607       51,431,422       37,476,607  

                                           
Ratios
                                          
Return on average tangible common shareholders' equity (a)/(b)
     272.75 %     0.66 %     8.57 %     3.32 %     9.21 %     116.40 %     11.23 %
Ending tangible common equity as a percent of:
                                                        
Ending tangible assets (d)/(f)
     7.48 %     9.06 %     6.54 %     6.57 %     7.13 %     7.48 %     7.13 %
Risk-weighted assets (d)/(g)
     13.41 %     11.05 %     8.38 %     8.37 %     8.86 %     13.41 %     8.86 %
Average tangible common equity as a percent
                                                        
of average tangible assets (b)/(h)
     7.37 %     7.27 %     6.51 %     7.05 %     7.18 %     6.68 %     7.41 %
Tangible book value per common share (d)/(i)
   $ 10.48     $ 6.61     $ 6.59     $ 6.43     $ 6.62     $ 10.48     $ 6.62  
Ending tangible shareholders' equity to
                                                        
ending tangible assets (e)/(f)
     8.57 %     11.14 %     8.60 %     8.70 %     7.13 %     8.57 %     7.13 %
Average tangible shareholders' equity to
                                                        
average tangible assets (c)/(h)
     9.13 %     9.35 %     8.59 %     7.28 %     7.18 %     8.65 %     7.41 %

First Financial Bancorp. does not intend for this Item 2.02 or Exhibits 99.1 or 99.2 to be treated as “filed” for purposes of the Securities Exchange Act of 1934, as amended, or incorporated by reference into its filings under the Securities Act of 1933, as amended.
 
 
 
 
 
Item 9.01                      Exhibits.

(c)  
Exhibits:

The following exhibit shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.

2.1 
Second Amendment to Purchase and Assumption Agreement
99.1 
First Financial Bancorp. Press Release dated November 5, 2009.
99.2 
First Financial Bancorp. November 6, 2009 Earnings Call slides.

 
 
 

 
 
 
 
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
FIRST FINANCIAL BANCORP.
 
 
  
       
 
By:
/s/ J. Franklin Hall  
    J. Franklin Hall  
   
Executive Vice President and
Chief Financial Officer
  
       
Date:  November 6, 2009
 
 
 
 
 



 
Form 8-K   First Financial Bancorp.
 
 
Exhibit Index
 
 
Exhibit No.
 Description
   
2.1  
 Second Amendment to Purchase and Assumption Agreement
99.1  
First Financial Bancorp. Press Release dated November 5, 2009.
99.2  
First Financial Bancorp. November 6, 2009 Earnings Call slides.