Attached files
| file | filename |
|---|---|
| 8-K - FIRST FINANCIAL BANCORP /OH/ | v205361_8k.htm |
| EX-99.1 - FIRST FINANCIAL BANCORP /OH/ | v205361_ex99-1.htm |
EXHIBIT
99.2
First
Financial Bancorp Announces Strategic Market Changes
and
Banking Center Consolidation Plans
Cincinnati,
Ohio – December 8, 2010 – First Financial Bancorp (Nasdaq: FFBC) (“First
Financial” or the “Company”) announced today changes in its strategic markets
and plans to consolidate selected banking centers.
“As we
execute our strategic plan, we continually evaluate each of our designated
markets and specific locations so that our resources are appropriately focused
on the best opportunities to maximize value for both the Company and our
clients,” said Claude Davis, President and Chief Executive Officer.
“Through
an internal review process that includes analyzing growth opportunities, brand
awareness and penetration within our markets, we made the decision to shift
resources towards those core markets we believe will provide a higher level of
potential overall growth while improving the efficiency of our
operations. These markets include key areas such as Cincinnati and
Dayton, Ohio and Indianapolis, Southern and Northwest Indiana.”
Based on
the internal strategic review, First Financial will be exiting the four
locations comprising its Michigan geographic market, Grandville, Kalamazoo,
Lansing and Traverse City, and its single location in Louisville,
Kentucky. All five locations were acquired during 2009 as part of
First Financial’s Federal Deposit Insurance Corporation (“FDIC”)-assisted
transactions under which the Company assumed the banking operations of Irwin
Union Bank and Trust Company and Irwin Union Bank, F.S.B. (collectively,
“Irwin”).
In
exiting these markets, First Financial expects to use a process similar to that
employed by the Company in exiting the western United States markets also
acquired as part of the Irwin transaction. With that approach, the
Company may conduct the sale of loans associated with these locations if market
conditions are favorable for such transactions. Otherwise, the loans
will be retained and serviced in accordance with their contractual terms and
conditions. Deposit clients will be notified of the decision and the
related deposit balances are expected to decline following the
notification.
As of
September 30, 2010, First Financial had total loans of $265.8 million and total
deposits of $140.6 million in the four banking centers located in Michigan and
loans of $37.0 million and deposits of $22.9 million in the Louisville banking
center. Estimated annual pre-tax direct operating expenses associated
with the five branches that will diminish over time are $5.3
million. Activity related to these banking centers will be
categorized in future periods as “acquired non-strategic.”
In order
to improve efficiency within its strategic markets, the Company will also be
consolidating seven banking centers located in Ohio and
Indiana. First Financial will continue to provide the high level of
service to affected commercial and retail clients that they have been accustomed
to in the past.
Subject to appropriate regulatory
notification and/or non-objection, the market exits and banking center
consolidations are expected to be effective March 31, 2011.
Forward-Looking
Statement
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’’, ‘‘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;
|
|
|
§
|
mergers
and acquisitions, including costs or difficulties related to the
integration of acquired companies and the wind-down of non-strategic
operations;
|
|
|
§
|
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;
|
|
|
§
|
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, 2009, 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 September 30, 2010, the Company had $6.2 billion in
assets, $4.4 billion in loans, $5.1 billion in deposits and $691 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 $2.2
billion in assets under management as of September 30, 2010. The
Company’s strategic operating markets are located in Ohio, Indiana and Kentucky
where it operates 108 banking centers across 70
communities. 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
|