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

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EXHIBIT 99.1

First Financial Bancorp Reports Second Quarter 2011 Financial Results

Introducing Variable Dividend – 125% Increase in Total Dividends Paid to Shareholders for Quarter

Cincinnati, Ohio – July 28, 2011 – First Financial Bancorp (Nasdaq: FFBC) (“First Financial” or the “Company”) announced today financial and operational results for the second quarter 2011 and for the six month period ended June 30, 2011.

Second quarter 2011 net income was $16.0 million and earnings per diluted common share were $0.27. This compares with first quarter 2011 net income of $17.2 million and earnings per diluted common share of $0.29 and second quarter 2010 net income of $17.8 million and earnings per diluted common share of $0.30.

For the six month period ended June 30, 2011, net income and net income available to common shareholders were $33.2 million and earnings per diluted common share were $0.57 as compared to net income of $29.4 million, net income available to common shareholders of $27.5 million and earnings per diluted common share of $0.48 for the six month period ended June 30, 2010.

83rd consecutive quarter of profitability

Net income available to common shareholders for the six months ended June 30, 2011 increased 20.6% compared to the first half 2010

Adjusted pre-tax, pre-provision income increased $3.8 million, or 13.9%, compared to the first quarter 2011

Continued strong performance

Quarterly return on average assets of 1.03%

Quarterly return on risk-weighted assets of 1.89%

Quarterly return on average shareholders’ equity of 9.05%

Board of directors has authorized a 100% dividend payout ratio comprised of a recurring dividend and a variable dividend resulting in a 125% increase for the upcoming dividend

Recurring dividend based on stated payout ratio of between 40% - 60%; currently $0.12 per share

Variable dividend based on remainder of quarterly earnings; $0.15 per share based on quarterly earnings

Announced an agreement to acquire 16 Ohio-based branch locations from Liberty Savings Bank

Transaction includes approximately $346.2 million of deposits and $146.7 million of in-market performing loans

Significantly accelerates growth strategy in the key market of Dayton

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Average core deposit balances continue to grow

Average strategic transaction and savings deposits increased $169.8 million, or 5.0%, during the quarter

Average money market and savings account balances increased $295.6 million, or 22.0%, compared to the second quarter 2010

Capital ratios remain high as a result of earnings power

Tangible common equity to tangible assets of 11.11%

Tier 1 capital ratio of 20.15%

Total risk-based capital of 21.43%

Quarterly net interest margin remained strong at 4.61%

Yield on acquired loans continues to enhance net interest margin

$249.8 million of liquidity redeployed in investment securities

Continued positive impact from runoff of retail and brokered CDs and balances in the exited markets of Michigan and Louisville

Continued improvement in credit metrics

Total nonperforming loans declined $6.6 million, or 8.1%, compared to the linked quarter

Nonperforming loans to total loans declined to 2.65% as compared to 2.90% as of March 31, 2011

Provision for uncovered loan losses totaled $5.8 million, representing 100.5% of total net charge-offs for the quarter

Balance sheet risk continues to remain low

FDIC loss share coverage on 30.8% of loan portfolio

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

Claude Davis, President and Chief Executive Officer, commented, “Once again, First Financial delivered another quarter of solid performance demonstrating our ability to consistently produce a high level of earnings despite on-going challenges in our operating markets. Helping to drive earnings this quarter was the continued focus we have placed on managing costs and improving the efficiency of our operations. As a result of our efforts, our strategic noninterest expenses declined 4.3% compared to the linked quarter and 8.4% compared to the second quarter 2010.

It was also an exciting quarter for us as we announced the acquisition of 16 Ohio-based branch locations from Liberty Savings Bank, which will substantially enhance our presence in the Dayton area and leave us positioned as the largest community bank operating in that market. Our integration team is hard at work and, as we have previously reported, we expect the transaction to close during the third quarter.

Due to our strong capital position and continued earnings performance, we are constantly evaluating strategies to best deploy our capital in the most shareholder-friendly manner while also monitoring the evolving and uncertain regulatory landscape. As a result of this evaluation, we are announcing that the board of directors has authorized a 100% dividend payout ratio that will consist of two parts: a recurring dividend based on our stated payout ratio of 40% - 60% of earnings; and a variable dividend that will equal the remainder of our quarterly earnings. The variable dividend is expected to continue until we have acquisitions or organic capital utilization rates that equal or exceed our capital generation rates. Thus, we expect our next quarterly dividend to be $0.27 per share, payable on October 1, 2011.

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We intend to manage our capital ratios at levels above our stated thresholds, which include a tangible common equity ratio of 7%, tier 1 leverage ratio of 8% and total risk based capital ratio of 13%. Each quarter, we will evaluate our capital levels based on expected growth plans and the aforementioned capital ratio thresholds.

Economic challenges in our strategic markets continue to impact loan growth as both businesses and consumers remain hesitant to access credit. While average total uncovered loan balances were down slightly compared to the prior quarter, our renewed focus on building a strong sales culture has produced positive results as average commercial loan balances have increased 6.8% compared to the second quarter 2010. New originations and renewals in our commercial and CRE portfolios were particularly strong during June and our pipeline of outstanding proposals and pending commitments at the end of the quarter was at its highest level in months.”

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SECTION I – RESULTS OF OPERATIONS

NET INTEREST INCOME

Net interest income on a fully tax-equivalent basis for the second quarter 2011 was $66.1 million as compared to $67.6 million for the first quarter 2011 and $68.0 million as compared to the year-over-year period. Compared to the linked quarter, the decrease during the second quarter 2011 resulted from a decline in interest income earned on loans primarily driven by an 8.8% decrease in the balance of average covered loans outstanding. However, this decline was partially offset by an increase in interest earned on investments and lower interest expense on deposits.

The decrease compared to the year-over-year quarter was primarily driven by the 27.3% decline in average covered loan balances and the reduced yield on the FDIC indemnification asset, offset partially by higher interest income from investments and 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.

For the six month period ended June 30, 2011, net interest income on a fully tax-equivalent basis was $133.7 million as compared to $140.2 million for the comparable period in 2010. Similar to the quarterly year-over-year items noted above, the decrease was driven by the decline in average covered loan balances and the reduced yield on the FDIC indemnification asset, offset partially by higher interest income from investments and lower funding costs.

NET INTEREST MARGIN

Net interest margin was 4.61% for the second quarter 2011 as compared to 4.73% for the first quarter 2011 and 4.53% for the second quarter 2010. 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 its liquidity to purchase investment securities, totaling $249.8 million during the quarter, plus it realized a full quarter’s impact from investment purchases that settled late in the first quarter 2011, helping to offset the margin decline from lower loan balances. Net interest margin also benefited from the expected runoff of retail and brokered certificates of deposit as well as runoff in deposits related to the exited markets of Michigan and Louisville.

Net interest margin for the six month period ended June 30, 2011 remained relatively flat at 4.67% as compared to 4.71% for the six month period ended June 30, 2010.

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NONINTEREST INCOME

The following table presents noninterest income for the three months ended June 30, 2011, March 31, 2011 and June 30, 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
	June 30,			March 31,			June 30,
(Dollars in thousands)	2011			2011			2010

Total noninterest income	$	41,118		$	43,658		$	40,467

Significant components of noninterest income

Items likely to recur:

Accelerated discount on covered loans 1, 2		4,756			5,783			7,408
FDIC loss sharing income		21,643			23,435			15,170
Other acquired-non-strategic items		(485	)		(552	)		476

Items expected not to recur:

FDIC settlement and other items not expected to recur		(152	)		125			2,930
Total excluding items noted above	$	15,356		$	14,867		$	14,483

1 See Section II for additional information 2 Net of the corresponding valuation adjustment on the FDIC indemnification asset

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. No material sales of covered loans occurred during the second quarter 2011. This activity is discussed in more detail in Section II.

Excluding the items highlighted in Table I, estimated noninterest income earned in the second quarter 2011 was $15.4 million as compared to $14.9 million in the first quarter 2011 and $14.5 million in the second quarter 2010. The increase compared to the linked quarter was primarily driven by higher service charges on deposits, bankcard income and client derivative fees; offset partially by lower gain on sale from residential mortgage originations and trust and wealth management fees. Additionally, the Company recognized a gain of $429,000 resulting from the sale of certain loans originated by its franchise finance unit that had a net book value of approximately $9.3 million. Consistent with prior sales of franchise-related loans, the sale was conducted to lessen credit and geographic concentration risk within the franchise portfolio.

On a comparable basis, estimated noninterest income for the six months ended June 30, 2011 was $30.2 million as compared to $27.3 million for the six months ended June 30, 2010. The increase of $2.9 million, or 10.7%, was primarily attributable to higher gain on sale of franchise-related loans and residential mortgage originations, bankcard income, trust and wealth management fees and other noninterest income; offset partially by lower service charges on deposits and insurance income due to the Company’s decision to exit the insurance business in 2010.

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NONINTEREST EXPENSE

The following table presents noninterest expense for the three months ended June 30, 2011, March 31, 2011and June 30, 2010 including the estimated effect of acquired-non-strategic operations, acquisition-related costs and other transition items.

Table II
	For the Three Months Ended
	June 30,		March 31,		June 30,
(Dollars in thousands)	2011		2011		2010

Total noninterest expense	$	52,497	$	57,790	$	55,819

Significant components of noninterest expense

Items likely to recur:

Acquired-non-strategic operating expenses 1		2,673		3,911		1,270
Transition-related items 1		161		196		1,321
FDIC loss share support		1,369		783		938
Loss share and covered asset expense		3,376		3,171		-

Items expected not to recur:

Acquisition-related costs 1		76		116		2,180
Other items not expected to recur		1,140		3,962		2,387
Total excluding items noted above	$	43,702	$	45,651	$	47,723

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.

Excluding the items highlighted in Table II, estimated noninterest expense in the second quarter 2011 was $43.7 million as compared to $45.7 million in the first quarter 2011 and $47.7 million in the second quarter 2010. The decrease in noninterest expense of $1.9 million, or 4.3%, compared to the linked quarter was primarily driven by lower salaries and benefits, occupancy costs and FDIC assessments; offset by an increase in data processing and professional services expenses.

On a similar basis, estimated noninterest expense for the six months ended June 30, 2011 was $89.4 million as compared to $95.3 million for the six months ended June 30, 2010. The decrease of $5.9 million, or 6.2%, was primarily attributable to lower salaries and benefits, occupancy costs and FDIC assessments.

It is expected that certain wind-down costs related to acquired subsidiaries will continue through at least 2011.

INCOME TAXES

For the second quarter 2011, income tax expense was $8.9 million, resulting in an effective tax rate of 35.7%, compared with income tax expense of $9.3 million and an effective tax rate of 35.2% during the first quarter 2011 and $9.5 million and an effective tax rate of 34.8% during the comparable year-over-year period.

For the six month period ended June 30, 2011, income tax expense was $18.2 million, resulting in an effective tax rate of 35.4%, compared with income tax expense of $15.8 million and an effective tax rate of 34.9% during the six months ended June 30, 2010.

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CREDIT QUALITY – EXCLUDING COVERED ASSETS

The following table presents certain credit quality metrics related to the Company’s uncovered loan portfolio as of June 30, 2011 and for the trailing four quarters.

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

Total nonaccrual loans	$	56,536		$	62,048		$	62,302		$	66,157		$	66,671
Restructured loans		17,482			18,532			17,613			13,365			12,752
Total nonperforming loans		74,018			80,580			79,915			79,522			79,423
Total nonperforming assets		90,331			95,533			97,822			97,827			96,241

Nonperforming assets as a % of:
Period-end loans plus OREO		3.22	%		3.42	%		3.45	%		3.51	%		3.42	%
Total assets		1.50	%		1.51	%		1.57	%		1.59	%		1.46	%

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

Provision for loan and lease losses - uncovered	$	5,756		$	647		$	9,741		$	6,287		$	6,158

Allowance for uncovered loan & lease losses	$	53,671		$	53,645		$	57,235		$	57,249		$	57,811

Allowance for loan & lease losses as a % of:
Period-end loans		1.92	%		1.93	%		2.03	%		2.07	%		2.07	%
Nonaccrual loans		94.9	%		86.5	%		91.9	%		86.5	%		86.7	%
Nonperforming loans		72.5	%		66.6	%		71.6	%		72.0	%		72.8	%

Total net charge-offs	$	5,730		$	4,237		$	9,755		$	6,849		$	4,989
Annualized net-charge-offs as a % of average
loans & leases		0.83	%		0.61	%		1.39	%		0.97	%		0.71	%

Net Charge-offs

Second quarter 2011 net charge-offs were $5.7 million, or 0.83% of average loans and leases, compared with $4.2 million, or 0.61%, for the linked quarter and $5.0 million, or 0.71%, for the comparable year-over-year quarter. There were no individually significant items included in net charge-offs during the second quarter 2011 and the total amount was driven primarily by activity in the commercial real estate and construction portfolios.

For the six months ended June 30, 2011, net charge-offs were $10.0 million, or 0.72% of average loans and leases, as compared to $19.0 million, or 1.36%, for the six months ended June 30, 2010.

Nonperforming Assets

Nonperforming loans totaled $74.0 million and nonperforming assets totaled $90.3 million as of June 30, 2011 compared with $80.6 million and $95.5 million, respectively, for the linked quarter and $79.4 million and $96.2 million, respectively, for the comparable year-over-year quarter. The decrease in nonperforming assets relative to the linked quarter was driven by a reduction in nonaccrual and restructured loans, offset by an increase in OREO. The declines in nonaccrual and restructured loans primarily related to the commercial real estate and construction portfolios and included the effect of net charge-off activity discussed above and other resolution strategies which more than offset additions during the quarter.

OREO increased $1.4 million during the second quarter due primarily to one commercial property and one residential property, totaling $1.6 million in the aggregate, which were offset by dispositions during the quarter.

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Total classified assets as of June 30, 2011 remained flat at $184.8 million as compared to $185.7 million for the linked quarter. Classified assets are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse.

Delinquent Loans

Loans 30-to-89 days past due totaled $26.8 million, or 0.96% of period end loans, as of June 30, 2011. This compares to $20.4 million, or 0.73%, as of March 31, 2011 and $21.8 million, or 0.78%, as of June 30, 2010. The increase compared to the linked quarter resulted from increased delinquencies in the commercial and commercial real estate portfolios, offset by an improvement in residential real estate delinquencies.

Provision for Loan & Lease Losses

Second quarter 2011 provision expense related to uncovered loans and leases was $5.8 million as compared to $647,000 during the linked quarter and $6.2 million during the comparable year-over-year quarter. As a percentage of net charge-offs, second quarter 2011 provision expense equaled 100.5%.

Allowance for Loan & Lease Losses

As of the end of the second quarter 2011, the allowance for uncovered loan and lease losses was $53.7 million as compared to $53.6 million as of March 31, 2011 and $57.8 million as of June 30, 2010. As a percentage of period-end loans, the allowance for loan and lease losses was 1.92% as of June 30, 2011 as compared to 1.93% as of March 31, 2011 and 2.07% as of June 30, 2010. The allowance for loan and lease losses as of June 30, 2011 reflects management’s estimate of credit risk inherent in the Company’s uncovered loan portfolio at that time.

LOANS (EXCLUDING COVERED LOANS)

The following table presents the loan portfolio, not including covered loans, as of June 30, 2011, March 31, 2011 and June 30, 2010.

Table IV
	As of
	June 30, 2011					March 31, 2011					June 30, 2010
			Percent					Percent					Percent
(Dollars in thousands)	Balance		of Total			Balance		of Total			Balance		of Total

Commercial	$	798,552		28.6	%	$	794,821		28.6	%	$	749,522		26.8	%

Real estate - construction		142,682		5.1	%		145,355		5.2	%		197,112		7.1	%

Real estate - commercial		1,144,368		41.0	%		1,131,306		40.7	%		1,113,836		39.9	%

Real estate - residential		256,788		9.2	%		268,746		9.7	%		296,295		10.6	%

Installment		63,799		2.3	%		66,028		2.4	%		75,862		2.7	%

Home equity		344,457		12.3	%		339,590		12.2	%		332,928		11.9	%

Credit card		28,618		1.0	%		28,104		1.0	%		28,567		1.0	%

Lease financing		9,890		0.4	%		7,147		0.3	%		15		0.0	%

Total	$	2,789,154		100.0	%	$	2,781,097		100.0	%	$	2,794,137		100.0	%

Loans, excluding covered loans, totaled $2.8 billion at the end of the second quarter, remaining consistent with the balances as of March 31, 2011 and June 30, 2010. While total balances have remained flat over the past year, the composition of the portfolio has changed modestly as the average balances of commercial and commercial real estate loans have increased while construction and residential mortgage loans have declined.

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INVESTMENTS

The following table presents a summary of the total investment portfolio at June 30, 2011.

Table V
	As of June 30, 2011
	Book		Percent of			Book		Cost		Market		Gain/
(Dollars in thousands)	Value		Total			Yield		Basis		Value		(Loss)

Agencies	$	5,176		0.4	%		5.49		100.00		102.97	$	149
CMOs (agency)		645,062		53.4	%		2.02		101.23		101.94		4,460
CMOs (private)		37		0.0	%		0.91		100.00		100.21		-
MBSs (agency)		461,001		38.1	%		3.48		102.29		105.52		14,077
		1,111,276		91.9	%		2.64		101.67		103.40		18,686

Municipal		15,206		1.3	%		7.21		99.46		101.72		344
Other 1		82,125		6.8	%		3.50		102.89		103.44		440
		97,331		8.1	%		4.08		102.35		103.16		784
Total investment portfolio	$	1,208,607		100.0	%		2.76		101.72		103.38	$	19,470

			Net Unrealized Gain/(Loss)									$	19,470
			Aggregate Gains										20,299
			Aggregate Losses										(829	)

			Net Unrealized Gain/(Loss) % of Book Value										1.61	%

1 Other includes $71.5 million of regulatory stock

The increase in the investment portfolio as compared to the linked quarter was due to the purchase of $249.8 million of agency mortgage backed securities during the quarter, net of maturities, amortizations and investments called prior to maturity. 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 second quarter 2011, including activity related to deposits acquired through the FDIC-assisted transactions.

Table VI
	Deposit Activity - Second Quarter 2011
	Balance as of					Acquired-			Balance as of
	March 31,		Strategic			Non-Strategic			June 30,
(Dollars in thousands)	2011		Portfolio			Portfolio			2011

Transaction and savings accounts	$	3,514,956		(77,249	)		(44,900	)	$	3,392,807

Time deposits		1,590,008		(50,846	)		(12,431	)		1,526,731

Brokered deposits		112,286		(1,788	)		(55,626	)		54,872
Total deposits	$	5,217,250	$	(129,883	)	$	(112,957	)	$	4,974,410

Average strategic transaction and savings accounts increased $169.8 million, or 5.0%, during the second quarter 2011, driven by growth in retail money market accounts and public funds. However, the balance of strategic transaction and savings accounts as of June 30, 2011 declined $77.3 million compared to the balance as of March 31, 2011, due primarily to a seasonal decrease of $74.0 million in public funds transaction accounts. The planned and expected decrease in acquired-non-strategic transaction and savings accounts was primarily driven by activity in the 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 June 30, 2011, March 31, 2011 and June 30, 2010.

Table VII
	As of
	June 30,			March 31,			June 30,			"Well-Capitalized"
	2011			2011			2010			Minimum

Leverage Ratio		11.01	%		11.08	%		9.99	%		5.00	%

Tier 1 Capital Ratio		20.15	%		20.49	%		18.15	%		6.00	%

Total Risk-Based Capital Ratio		21.43	%		21.77	%		19.42	%		10.00	%

Ending tangible shareholders' equity
to ending tangible assets		11.11	%		10.40	%		9.55	%		N/A

Ending tangible common shareholders'
equity to ending tangible assets		11.11	%		10.40	%		9.55	%		N/A

On June 30, 2011, First Financial (OH) Statutory Trust II, a wholly-owned subsidiary of the Company, completed the early redemption of $20.0 million of floating rate trust preferred securities. This amount represented the entire balance of securities outstanding under this subsidiary which had a cost of funds of 3.41% as of the redemption date.

Regulatory capital ratios decreased modestly during the second quarter 2011 as a result of the trust preferred redemption, offset partially by the Company’s strong earnings performance which contributed to the growth in tangible shareholders’ equity. As of June 30, 2011, tangible book value per common share was $11.42 compared to $11.17 as of March 31, 2011 and $10.73 as of June 30, 2010. Regulatory capital ratios as of June 30, 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 June 30, 2011, March 31, 2011 and June 30, 2010.

Table VIII
	For the Three Months Ended
	June 30,			March 31,			June 30,
(Dollars in thousands)	2011			2011			2010

Income effect:
Accelerated discount on covered loans 1, 2	$	4,756		$	5,783		$	7,408
Acquired-non-strategic net interest income		8,821			8,902			10,207
FDIC loss sharing income		21,643			23,435			15,170
Service charges on deposit accounts related to
acquired-non-strategic operations		108			152			130
Other (loss) income related to acquired-non-strategic operations		(593	)		(704	)		346
Income related to the accelerated discount on covered
loans and acquired-non-strategic operations		34,735			37,568			33,261

Expense effect:
Provision for loan and lease losses - covered		23,895			26,016			18,962
Acquired-non-strategic operating expenses: 3
Salaries and employee benefits		499			1,497			29
Occupancy		64			2,153			542
Other		2,110			261			699
Total acquired-non-strategic operating expenses		2,673			3,911			1,270

FDIC loss share support 3		1,369			783			938

Loss share and covered asset expense		3,376			3,171			-

Acquisition-related costs: 3
Integration-related costs		76			46			720
Professional services fees		-			55			1,436
Other		-			15			24
Total acquisition-related costs		76			116			2,180

Transition-related items: 3
Salaries and benefits		81			166			1,843
Occupancy		-			-			(522	)
Other		80			30			-
Total transition-related items		161			196			1,321

Total expense effect		31,550			34,193			24,671

Total estimated effect on pre-tax earnings	$	3,185		$	3,375		$	8,590

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 second quarter 2011, First Financial recognized approximately $4.8 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. Accelerated discount recognized during the quarter resulted primarily from loan prepayments.

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OPERATING EXPENSES AND OTHER ACQUISITION-RELATED COSTS

Acquired-non-strategic operating expenses declined as costs associated with the exited markets of Michigan and Louisville, KY decreased significantly. During the quarter, however, the Company did incur professional services and other resolution expenses related to non-strategic acquired subsidiaries, which resulted in the increase in other acquired-non-strategic operating expenses. 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. Impairment, as a result of a decrease in expected cash flows, is recognized as provision expense in the period it is measured and has no impact on net interest margin. Improvements in expected cash flows are recognized on a prospective basis through an upward adjustment to the yield earned on the portfolio. Impairment and improvement are both partially offset by the impact of changes in the value of the FDIC indemnification asset. Impairment is partially offset by an increase to the FDIC indemnification asset as a result of FDIC loss sharing income and has no impact on net interest margin. Improvement, which is reflected as a higher yield, is partially offset by a lower yield earned on the FDIC indemnification asset until the next periodic valuation of the loans and the indemnification asset. The weighted average yield of the acquired loan portfolio may also be subject to change as loans with higher yields pay down more quickly or slowly than loans with lower yields.

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 June 30, 2011.

Table IX	For the Three Months Ended
	June 30, 2011
	Average
	Balance		Yield

Legacy and originated loan portfolio	$	2,782,947		5.23	%

Acquired loan portfolio accounted for under ASC Topic 310-30 1		1,184,505		10.78	%

Acquired loan portfolio accounted for under FAS 91 2		110,723		13.67	%

FDIC indemnification asset 1		186,125		-3.68	%

Total	$	4,264,300		6.60	%

1 Future yield adjustments subject to change based on required, periodic valuation procedures
2 Includes loans with revolving privileges which are scoped out of ASC Topic 310-30 and certain loans which the Company elected to treat under the cost recovery method of accounting.

As part of its on-going valuation procedures, the Company experienced a $0.8 million net improvement in the cash flow expectations related to certain loan pools during the second quarter 2011. During the quarter, the average yield earned on covered loans was 10.78%. On a prospective basis and until its next periodic valuation, the Company expects the yield on covered loans to be 11.51%.

- 12 -

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 average yield earned on the indemnification asset during the second quarter 2011 was -3.68%. On a prospective basis and until its next periodic valuation, the Company expects the yield on the indemnification asset to be -3.74%.

COVERED ASSETS & LOSS SHARE AGREEMENTS

As of June 30, 2011, 30.8% 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 second quarter 2011.

Table X
	Covered Loan Activity - Second Quarter 2011
			Reduction in Recorded Investment Due to:
	March 31,				Prepayments /		Contractual			Net		Loans With		June 30,
(Dollars in thousands)	2011		Sales		Renewals		Activity 1			Charge-Offs 2		Coverage Removed		2011

Commercial	$	294,300	$	6,928	$	27,874	$	7,360		$	385	$	-	$	251,753
Real estate - construction		44,789		-		2,437		(445	)		1,986		-		40,811
Real estate - commercial		762,188		-		23,389		9,999			696		1,219		726,885
Real estate - residential		140,256		-		4,707		1,197			221		-		134,131
Installment		18,008		-		2,169		344			298		-		15,197
Home equity		70,429		-		3,371		(2,426	)		820		-		68,664
Other covered loans		6,045		-		-		756			-		-		5,289
Total covered loans	$	1,336,015	$	6,928	$	63,947	$	16,785		$	4,406	$	1,219	$	1,242,730

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

2 Indemnified at 80% from the FDIC

During the second quarter 2011, the total balance of covered loans decreased $93.3 million, or 7.0%, 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. 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.

- 13 -

The Company has established an allowance for loan losses associated with covered loans based on estimated valuation procedures performed each quarter. During the second quarter 2011, the Company recognized a provision expense of $23.9 million related to net impairment and net charge-offs associated with covered loans, resulting in an allowance for covered loans of $51.0 million as of June 30, 2011. Loss share and covered asset expenses of $3.4 million consist primarily of losses related to covered OREO. The related receivable due from the FDIC under loss share agreements related to these loans and OREO of $21.6 million was recognized as FDIC loss share income and a corresponding increase to the FDIC indemnification asset.

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.

- 14 -

Teleconference / Webcast Information

First Financial’s senior management will host a conference call to discuss the Company’s financial and operating results on Friday, July 29, 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 August 15, 2011 at (877) 344-7529 (U.S. toll free) and +1 (412) 317-0088 (International); conference number 10002570. The webcast will be archived on the Investor Relations section of the Company’s website through July 29, 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 effects of the potential delay or failure of the U.S. federal government to pay its debts as they become due or make payments in the ordinary course;

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, such as the risks and uncertainties associated with the Irwin Mortgage Corporation bankruptcy proceedings;

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;

- 15 -

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, 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 June 30, 2011, the Company had $6.0 billion in assets, $4.0 billion in loans, $5.0 billion in deposits and $722 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 June 30, 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

- 16 -

Selected Financial Information

June 30, 2011

(unaudited)

Contents	Page

Consolidated Financial Highlights	2

Consolidated Statements of Income	3

Consolidated Quarterly Statements of Income	4 – 5

Consolidated Statements of Condition	6

Average Consolidated Statements of Condition	7

Net Interest Margin Rate / Volume Analysis	8 – 9

Credit Quality	10

Capital Adequacy	11

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share)

(Unaudited)

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

RESULTS OF OPERATIONS
Net income	$	15,973		$	17,207		$	14,300		$	15,579		$	17,774		$	33,180		$	29,372
Net income available to common shareholders	$	15,973		$	17,207		$	14,300		$	15,579		$	17,774		$	33,180		$	27,507
Net earnings per common share - basic	$	0.28		$	0.30		$	0.25		$	0.27		$	0.31		$	0.58		$	0.49
Net earnings per common share - diluted	$	0.27		$	0.29		$	0.24		$	0.27		$	0.30		$	0.57		$	0.48
Dividends declared per common share	$	0.12		$	0.12		$	0.10		$	0.10		$	0.10		$	0.24		$	0.20

KEY FINANCIAL RATIOS
Return on average assets		1.03	%		1.11	%		0.90	%		0.96	%		1.08	%		1.07	%		0.89	%
Return on average shareholders' equity		9.05	%		10.04	%		8.14	%		9.03	%		10.62	%		9.54	%		8.77	%
Return on average common shareholders' equity		9.05	%		10.04	%		8.14	%		9.03	%		10.62	%		9.54	%		8.51	%
Return on average tangible common shareholders' equity		9.84	%		10.94	%		8.87	%		9.87	%		11.64	%		10.38	%		9.35	%

Net interest margin		4.61	%		4.73	%		4.65	%		4.59	%		4.53	%		4.67	%		4.71	%
Net interest margin (fully tax equivalent) (1)		4.62	%		4.75	%		4.67	%		4.60	%		4.54	%		4.69	%		4.72	%

Ending equity as a percent of ending assets		11.95	%		11.21	%		11.16	%		11.23	%		10.35	%		11.95	%		10.35	%
Ending tangible common equity as a percent of:
Ending tangible assets		11.11	%		10.40	%		10.33	%		10.38	%		9.55	%		11.11	%		9.55	%
Risk-weighted assets		19.67	%		19.29	%		17.36	%		17.61	%		17.17	%		19.67	%		17.17	%

Average equity as a percent of average assets		11.38	%		11.09	%		11.12	%		10.68	%		10.14	%		11.24	%		10.18	%
Average common equity as a percent of average assets		11.38	%		11.09	%		11.12	%		10.68	%		10.14	%		11.24	%		9.82	%
Average tangible common equity as a percent of average tangible assets		10.56	%		10.28	%		10.29	%		9.86	%		9.33	%		10.42	%		9.02	%

Book value per common share	$	12.39		$	12.15		$	12.01		$	11.90		$	11.74		$	12.39		$	11.74
Tangible book value per common share	$	11.42		$	11.17		$	11.02		$	10.90		$	10.73		$	11.42		$	10.73

Tier 1 Ratio (2)		20.15	%		20.49	%		18.45	%		18.64	%		18.15	%		20.15	%		18.15	%
Total Capital Ratio (2)		21.43	%		21.77	%		19.72	%		19.91	%		19.42	%		21.43	%		19.42	%
Leverage Ratio (2)		11.01	%		11.08	%		10.89	%		10.50	%		9.99	%		11.01	%		9.99	%

AVERAGE BALANCE SHEET ITEMS
Loans (3)	$	2,782,947		$	2,821,450		$	2,804,832		$	2,805,764		$	2,806,616		$	2,802,092		$	2,827,970
Covered loans and FDIC indemnification asset		1,481,353			1,628,645			1,783,737			1,886,750			2,041,820			1,554,592			2,104,764
Investment securities		1,093,870			1,045,292			798,135			691,700			597,991			1,069,715			578,402
Interest-bearing deposits with other banks		375,434			276,837			405,920			483,097			554,333			326,408			474,978
Total earning assets	$	5,733,604		$	5,772,224		$	5,792,624		$	5,867,311		$	6,000,760		$	5,752,807		$	5,986,114
Total assets	$	6,219,754		$	6,266,408		$	6,270,480		$	6,408,479		$	6,621,021		$	6,242,952		$	6,634,208
Noninterest-bearing deposits	$	734,674		$	733,242		$	741,343		$	721,501		$	740,011		$	733,962		$	757,107
Interest-bearing deposits		4,402,103			4,431,524			4,438,113			4,448,929			4,570,971			4,416,732			4,557,794
Total deposits	$	5,136,777		$	5,164,766		$	5,179,456		$	5,170,430		$	5,310,982		$	5,150,694		$	5,314,901
Borrowings	$	218,196		$	230,087		$	213,107		$	352,370		$	447,945		$	224,109		$	453,380
Shareholders' equity	$	707,750		$	695,062		$	697,016		$	684,112		$	671,051		$	701,441		$	675,286

CREDIT QUALITY RATIOS (excluding covered assets)
Allowance to ending loans		1.92	%		1.93	%		2.03	%		2.07	%		2.07	%		1.92	%		2.07	%
Allowance to nonaccrual loans		94.93	%		86.46	%		91.87	%		86.54	%		86.71	%		94.93	%		86.71	%
Allowance to nonperforming loans		72.51	%		66.57	%		71.62	%		71.99	%		72.79	%		72.51	%		72.79	%
Nonperforming loans to total loans		2.65	%		2.90	%		2.84	%		2.88	%		2.84	%		2.65	%		2.84	%
Nonperforming assets to ending loans, plus OREO		3.22	%		3.42	%		3.45	%		3.51	%		3.42	%		3.22	%		3.42	%
Nonperforming assets to total assets		1.50	%		1.51	%		1.57	%		1.59	%		1.46	%		1.50	%		1.46	%
Net charge-offs to average loans (annualized)		0.83	%		0.61	%		1.39	%		0.97	%		0.71	%		0.72	%		1.36	%

(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) June 30, 2011 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

- 2 -

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share)

(Unaudited)

	Three months ended,									Six months ended,
	Jun. 30,									Jun. 30,
	2011			2010			% Change			2011			2010			% Change
Interest income
Loans, including fees	$	71,929		$	74,944			(4.0	)%	$	145,945		$	154,282			(5.4	)%
Investment securities
Taxable		7,080			5,444			30.1	%		13,883			10,840			28.1	%
Tax-exempt		192			245			(21.6	)%		390			480			(18.8	)%
Total investment securities interest		7,272			5,689			27.8	%		14,273			11,320			26.1	%
Other earning assets		(1,384	)		5,305			(126.1	)%		(2,338	)		10,895			(121.5	)%
Total interest income		77,817			85,938			(9.4	)%		157,880			176,497			(10.5	)%

Interest expense
Deposits		10,767			15,308			(29.7	)%		22,167			30,956			(28.4	)%
Short-term borrowings		49			17			188.2	%		94			36			161.1	%
Long-term borrowings		937			2,556			(63.3	)%		2,026			5,113			(60.4	)%
Subordinated debentures and capital securities		197			319			(38.2	)%		391			634			(38.3	)%
Total interest expense		11,950			18,200			(34.3	)%		24,678			36,739			(32.8	)%
Net interest income		65,867			67,738			(2.8	)%		133,202			139,758			(4.7	)%
Provision for loan and lease losses - uncovered		5,756			6,158			(6.5	)%		6,403			17,536			(63.5	)%
Provision for loan and lease losses - covered		23,895			18,962			26.0	%		49,911			28,422			75.6	%
Net interest income after provision for loan and lease losses		36,216			42,618			(15.0	)%		76,888			93,800			(18.0	)%

Noninterest income
Service charges on deposit accounts		4,883			5,855			(16.6	)%		9,493			11,466			(17.2	)%
Trust and wealth management fees		3,507			3,668			(4.4	)%		7,432			7,213			3.0	%
Bankcard income		2,328			2,102			10.8	%		4,483			4,070			10.1	%
Net gains from sales of loans		854			473			80.5	%		1,843			642			187.1	%
FDIC loss sharing income		21,643			15,170			42.7	%		45,078			22,738			98.2	%
Accelerated discount on covered loans		4,756			7,408			(35.8	)%		10,539			13,506			(22.0	)%
(Loss) Income on preferred securities		0			0			N/M			0			(30	)		(100.0	)%
Other		3,147			5,791			(45.7	)%		5,908			7,797			(24.2	)%
Total noninterest income		41,118			40,467			1.6	%		84,776			67,402			25.8	%

Noninterest expenses
Salaries and employee benefits		25,123			29,513			(14.9	)%		52,693			59,754			(11.8	)%
Net occupancy		4,493			5,340			(15.9	)%		11,353			13,462			(15.7	)%
Furniture and equipment		2,581			2,514			2.7	%		5,134			4,787			7.2	%
Data processing		1,453			1,136			27.9	%		2,691			2,368			13.6	%
Marketing		1,402			1,600			(12.4	)%		2,643			2,674			(1.2	)%
Communication		753			822			(8.4	)%		1,567			2,030			(22.8	)%
Professional services		3,095			2,446			26.5	%		5,322			4,189			27.0	%
State intangible tax		1,236			1,426			(13.3	)%		2,601			2,757			(5.7	)%
FDIC assessments		1,152			1,907			(39.6	)%		3,273			3,917			(16.4	)%
Other		11,209			9,115			23.0	%		23,010			20,142			14.2	%
Total noninterest expenses		52,497			55,819			(6.0	)%		110,287			116,080			(5.0	)%
Income before income taxes		24,837			27,266			(8.9	)%		51,377			45,122			13.9	%
Income tax expense		8,864			9,492			(6.6	)%		18,197			15,750			15.5	%
Net income		15,973			17,774			(10.1	)%		33,180			29,372			13.0	%
Dividends on preferred stock		0			0			N/M			0			1,865			(100.0	)%
Income available to common shareholders	$	15,973		$	17,774			(10.1	)%	$	33,180		$	27,507			20.6	%

ADDITIONAL DATA
Net earnings per common share - basic	$	0.28		$	0.31					$	0.58		$	0.49
Net earnings per common share - diluted	$	0.27		$	0.30					$	0.57		$	0.48
Dividends declared per common share	$	0.12		$	0.10					$	0.24		$	0.20

Return on average assets		1.03	%		1.08	%					1.07	%		0.89	%
Return on average shareholders' equity		9.05	%		10.62	%					9.54	%		8.77	%

Interest income	$	77,817		$	85,938			(9.4	)%	$	157,880		$	176,497			(10.5	)%
Tax equivalent adjustment		240			212			13.2	%		478			424			12.7	%
Interest income - tax equivalent		78,057			86,150			(9.4	)%		158,358			176,921			(10.5	)%
Interest expense		11,950			18,200			(34.3	)%		24,678			36,739			(32.8	)%
Net interest income - tax equivalent	$	66,107		$	67,950			(2.7	)%	$	133,680		$	140,182			(4.6	)%

Net interest margin		4.61	%		4.53	%					4.67	%		4.71	%
Net interest margin (fully tax equivalent) (1)		4.62	%		4.54	%					4.69	%		4.72	%

Full-time equivalent employees (2)		1,374			1,511

(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 QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share)

(Unaudited)

	2011
	Second			First						% Change
	Quarter			Quarter			YTD			Linked Qtr.
Interest income
Loans, including fees	$	71,929		$	74,016		$	145,945			(2.8	)%
Investment securities
Taxable		7,080			6,803			13,883			4.1	%
Tax-exempt		192			198			390			(3.0	)%
Total investment securities interest		7,272			7,001			14,273			3.9	%
Other earning assets		(1,384	)		(954	)		(2,338	)		45.1	%
Total interest income		77,817			80,063			157,880			(2.8	)%

Interest expense
Deposits		10,767			11,400			22,167			(5.6	)%
Short-term borrowings		49			45			94			8.9	%
Long-term borrowings		937			1,089			2,026			(14.0	)%
Subordinated debentures and capital securities		197			194			391			1.5	%
Total interest expense		11,950			12,728			24,678			(6.1	)%
Net interest income		65,867			67,335			133,202			(2.2	)%
Provision for loan and lease losses - uncovered		5,756			647			6,403			789.6	%
Provision for loan and lease losses - covered		23,895			26,016			49,911			(8.2	)%
Net interest income after provision for loan and lease losses		36,216			40,672			76,888			(11.0	)%

Noninterest income
Service charges on deposit accounts		4,883			4,610			9,493			5.9	%
Trust and wealth management fees		3,507			3,925			7,432			(10.6	)%
Bankcard income		2,328			2,155			4,483			8.0	%
Net gains from sales of loans		854			989			1,843			(13.7	)%
FDIC loss sharing income		21,643			23,435			45,078			(7.6	)%
Accelerated discount on covered loans		4,756			5,783			10,539			(17.8	)%
Other		3,147			2,761			5,908			14.0	%
Total noninterest income		41,118			43,658			84,776			(5.8	)%

Noninterest expenses
Salaries and employee benefits		25,123			27,570			52,693			(8.9	)%
Net occupancy		4,493			6,860			11,353			(34.5	)%
Furniture and equipment		2,581			2,553			5,134			1.1	%
Data processing		1,453			1,238			2,691			17.4	%
Marketing		1,402			1,241			2,643			13.0	%
Communication		753			814			1,567			(7.5	)%
Professional services		3,095			2,227			5,322			39.0	%
State intangible tax		1,236			1,365			2,601			(9.5	)%
FDIC assessments		1,152			2,121			3,273			(45.7	)%
Other		11,209			11,801			23,010			(5.0	)%
Total noninterest expenses		52,497			57,790			110,287			(9.2	)%
Income before income taxes		24,837			26,540			51,377			(6.4	)%
Income tax expense		8,864			9,333			18,197			(5.0	)%
Net income	$	15,973		$	17,207		$	33,180			(7.2	)%

ADDITIONAL DATA
Net earnings per common share - basic	$	0.28		$	0.30		$	0.58
Net earnings per common share - diluted	$	0.27		$	0.29		$	0.57
Dividends declared per common share	$	0.12		$	0.12		$	0.24

Return on average assets		1.03	%		1.11	%		1.07	%
Return on average shareholders' equity		9.05	%		10.04	%		9.54	%

Interest income	$	77,817		$	80,063		$	157,880			(2.8	)%
Tax equivalent adjustment		240			238			478			0.8	%
Interest income - tax equivalent		78,057			80,301			158,358			(2.8	)%
Interest expense		11,950			12,728			24,678			(6.1	)%
Net interest income - tax equivalent	$	66,107		$	67,573		$	133,680			(2.2	)%

Net interest margin		4.61	%		4.73	%		4.67	%
Net interest margin (fully tax equivalent) (1)		4.62	%		4.75	%		4.69	%

Full-time equivalent employees (2)		1,374			1,483

(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.

- 4 -

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share)

(Unaudited)

	2010
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans, including fees	$	75,836		$	75,957		$	74,944		$	79,338		$	306,075
Investment securities
Taxable		5,522			5,386			5,444			5,396			21,748
Tax-exempt		214			240			245			235			934
Total investment securities interest		5,736			5,626			5,689			5,631			22,682
Other earning assets		749			3,101			5,305			5,590			14,745
Total interest income		82,321			84,684			85,938			90,559			343,502

Interest expense
Deposits		12,923			14,457			15,308			15,648			58,336
Short-term borrowings		33			25			17			19			94
Long-term borrowings		1,194			2,034			2,556			2,557			8,341
Subordinated debentures and capital securities		265			322			319			315			1,221
Total interest expense		14,415			16,838			18,200			18,539			67,992
Net interest income		67,906			67,846			67,738			72,020			275,510
Provision for loan and lease losses - uncovered		9,741			6,287			6,158			11,378			33,564
Provision for loan and lease losses - covered		13,997			20,725			18,962			9,460			63,144
Net interest income after provision for loan and lease losses		44,168			40,834			42,618			51,182			178,802

Noninterest income
Service charges on deposit accounts		5,090			5,632			5,855			5,611			22,188
Trust and wealth management fees		3,283			3,366			3,668			3,545			13,862
Bankcard income		2,255			2,193			2,102			1,968			8,518
Net gains from sales of loans		1,241			2,749			473			169			4,632
FDIC loss sharing income		11,306			17,800			15,170			7,568			51,844
Accelerated discount on covered loans		6,113			9,448			7,408			6,098			29,067
(Loss) income on preferred securities		0			0			0			(30	)		(30	)
Other		5,246			3,707			5,791			2,006			16,750
Total noninterest income		34,534			44,895			40,467			26,935			146,831

Noninterest expenses
Salaries and employee benefits		28,819			28,790			29,513			30,241			117,363
Net occupancy		4,430			4,663			5,340			8,122			22,555
Furniture and equipment		3,022			2,490			2,514			2,273			10,299
Data processing		1,593			1,191			1,136			1,232			5,152
Marketing		1,453			1,230			1,600			1,074			5,357
Communication		892			986			822			1,208			3,908
Professional services		2,863			2,117			2,446			1,743			9,169
Debt extinguishment		0			8,029			0			0			8,029
State intangible tax		1,362			724			1,426			1,331			4,843
FDIC assessments		2,272			2,123			1,907			2,010			8,312
Other		9,584			8,967			9,115			11,027			38,693
Total noninterest expenses		56,290			61,310			55,819			60,261			233,680
Income before income taxes		22,412			24,419			27,266			17,856			91,953
Income tax expense		8,112			8,840			9,492			6,258			32,702
Net income		14,300			15,579			17,774			11,598			59,251
Dividends on preferred stock		0			0			0			1,865			1,865
Net income available to common shareholders	$	14,300		$	15,579		$	17,774		$	9,733		$	57,386

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

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

Interest income	$	82,321		$	84,684		$	85,938		$	90,559		$	343,502
Tax equivalent adjustment		220			222			212			212			866
Interest income - tax equivalent		82,541			84,906			86,150			90,771			344,368
Interest expense		14,415			16,838			18,200			18,539			67,992
Net interest income - tax equivalent	$	68,126		$	68,068		$	67,950		$	72,232		$	276,376

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

Full-time equivalent employees (2)		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.

- 5 -

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			% Change			% Change
	2011			2011			2010			2010			2010			Linked Qtr.			Comparable Qtr.
ASSETS
Cash and due from banks	$	104,150		$	96,709		$	105,981		$	144,101		$	166,604			7.7	%		(37.5	)%
Interest-bearing deposits with other banks		147,108			387,923			176,952			280,457			675,891			(62.1	)%		(78.2	)%
Investment securities available-for-sale		1,134,114			1,024,684			919,110			616,175			503,404			10.7	%		125.3	%
Investment securities held-to-maturity		3,001			16,780			17,406			17,842			17,601			(82.1	)%		(82.9	)%
Other investments		71,492			78,689			78,689			86,509			86,509			(9.1	)%		(17.4	)%
Loans held for sale		8,824			6,813			29,292			19,075			11,946			29.5	%		(26.1	)%
Loans
Commercial		798,552			794,821			800,253			763,449			749,522			0.5	%		6.5	%
Real estate - construction		142,682			145,355			163,543			178,914			197,112			(1.8	)%		(27.6	)%
Real estate - commercial		1,144,368			1,131,306			1,139,931			1,095,543			1,113,836			1.2	%		2.7	%
Real estate - residential		256,788			268,746			269,173			283,914			296,295			(4.4	)%		(13.3	)%
Installment		63,799			66,028			69,711			73,138			75,862			(3.4	)%		(15.9	)%
Home equity		344,457			339,590			341,310			341,288			332,928			1.4	%		3.5	%
Credit card		28,618			28,104			29,563			28,825			28,567			1.8	%		0.2	%
Lease financing		9,890			7,147			2,609			138			15			38.4	%		N/M
Total loans, excluding covered loans		2,789,154			2,781,097			2,816,093			2,765,209			2,794,137			0.3	%		(0.2	)%
Less
Allowance for loan and lease losses		53,671			53,645			57,235			57,249			57,811			0.0	%		(7.2	)%
Net loans - uncovered		2,735,483			2,727,452			2,758,858			2,707,960			2,736,326			0.3	%		(0.0	)%
Covered loans		1,242,730			1,336,015			1,481,493			1,609,584			1,717,632			(7.0	)%		(27.6	)%
Less
Allowance for loan and lease losses		51,044			31,555			16,493			11,583			1,273			61.8	%		N/M
Net loans - covered		1,191,686			1,304,460			1,465,000			1,598,001			1,716,359			(8.6	)%		(30.6	)%
Net loans		3,927,169			4,031,912			4,223,858			4,305,961			4,452,685			(2.6	)%		(11.8	)%
Premises and equipment		114,797			115,873			118,477			116,959			114,630			(0.9	)%		0.1	%
Goodwill		51,820			51,820			51,820			51,820			51,820			0.0	%		0.0	%
Other intangibles		4,847			5,227			5,604			6,049			6,614			(7.3	)%		(26.7	)%
FDIC indemnification asset		193,113			207,359			222,648			237,709			251,633			(6.9	)%		(23.3	)%
Accrued interest and other assets		281,172			290,692			300,388			271,843			244,298			(3.3	)%		15.1	%
Total Assets	$	6,041,607		$	6,314,481		$	6,250,225		$	6,154,500		$	6,583,635			(4.3	)%		(8.2	)%

LIABILITIES
Deposits
Interest-bearing	$	1,021,519		$	1,136,219		$	1,111,877		$	999,922		$	1,135,970			(10.1	)%		(10.1	)%
Savings		1,643,110			1,628,952			1,534,045			1,407,332			1,350,161			0.9	%		21.7	%
Time		1,581,603			1,702,294			1,794,843			1,930,652			2,042,824			(7.1	)%		(22.6	)%
Total interest-bearing deposits		4,246,232			4,467,465			4,440,765			4,337,906			4,528,955			(5.0	)%		(6.2	)%
Noninterest-bearing		728,178			749,785			705,484			713,357			718,381			(2.9	)%		1.4	%
Total deposits		4,974,410			5,217,250			5,146,249			5,051,263			5,247,336			(4.7	)%		(5.2	)%
Federal funds purchased and securities sold under agreements to repurchase		105,291			87,973			59,842			58,747			38,299			19.7	%		174.9	%
Long-term debt		102,255			102,976			128,880			129,224			384,775			(0.7	)%		(73.4	)%
Other long-term debt		0			20,620			20,620			20,620			20,620			(100.0	)%		(100.0	)%
Total borrowed funds		207,546			211,569			209,342			208,591			443,694			(1.9	)%		(53.2	)%
Accrued interest and other liabilities		137,889			177,698			197,240			203,715			211,049			(22.4	)%		(34.7	)%
Total Liabilities		5,319,845			5,606,517			5,552,831			5,463,569			5,902,079			(5.1	)%		(9.9	)%

SHAREHOLDERS' EQUITY
Common stock		577,856			576,992			580,097			579,309			578,362			0.1	%		(0.1	)%
Retained earnings		329,455			320,515			310,271			301,777			292,004			2.8	%		12.8	%
Accumulated other comprehensive loss		(7,902	)		(12,332	)		(12,044	)		(9,106	)		(7,831	)		(35.9	)%		0.9	%
Treasury stock, at cost		(177,647	)		(177,211	)		(180,930	)		(181,049	)		(180,979	)		0.2	%		(1.8	)%
Total Shareholders' Equity		721,762			707,964			697,394			690,931			681,556			1.9	%		5.9	%
Total Liabilities and Shareholders' Equity	$	6,041,607		$	6,314,481		$	6,250,225		$	6,154,500		$	6,583,635			(4.3	)%		(8.2	)%

N/M = Not meaningful.

- 6 -

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

							Quarterly Averages									Year-to-Date Averages
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,
	2011			2011			2010			2010			2010			2011			2010
ASSETS
Cash and due from banks	$	118,829		$	111,953		$	122,167		$	185,322		$	273,162		$	115,410		$	304,573
Interest-bearing deposits with other banks		375,434			276,837			405,920			483,097			554,333			326,408			474,978
Investment securities		1,093,870			1,045,292			798,135			691,700			597,991			1,069,715			578,402
Loans held for sale		690			8,226			21,141			14,909			7,615			4,437			4,968
Loans
Commercial		797,158			802,944			739,082			735,228			746,636			800,035			766,000
Real estate - construction		139,255			158,403			172,585			187,401			202,513			148,776			217,102
Real estate - commercial		1,132,662			1,135,630			1,155,896			1,135,547			1,110,562			1,134,138			1,095,155
Real estate - residential		268,760			273,422			276,166			295,917			301,880			271,078			305,472
Installment		65,568			67,700			71,623			71,739			77,299			66,628			78,362
Home equity		341,876			340,285			339,192			336,288			332,044			341,085			332,656
Credit card		28,486			28,321			28,962			28,664			28,052			28,404			28,240
Lease financing		8,492			6,519			185			71			15			7,511			15
Total loans, excluding covered loans		2,782,257			2,813,224			2,783,691			2,790,855			2,799,001			2,797,655			2,823,002
Less
Allowance for loan and lease losses		55,132			59,756			60,433			60,871			60,430			57,431			60,162
Net loans - uncovered		2,727,125			2,753,468			2,723,258			2,729,984			2,738,571			2,740,224			2,762,840
Covered loans		1,295,228			1,420,197			1,551,003			1,648,030			1,781,741			1,357,367			1,834,382
Less
Allowance for loan and lease losses		39,070			23,399			16,104			882			14			31,278			7
Net loans - covered		1,256,158			1,396,798			1,534,899			1,647,148			1,781,727			1,326,089			1,834,375
Net loans		3,983,283			4,150,266			4,258,157			4,377,132			4,520,298			4,066,313			4,597,215
Premises and equipment		115,279			119,006			117,659			115,518			115,587			117,132			112,117
Goodwill		51,820			51,820			51,820			51,820			51,820			51,820			51,820
Other intangibles		5,031			5,421			5,841			6,384			6,848			5,225			7,138
FDIC indemnification asset		186,125			208,448			232,734			238,720			260,079			197,225			270,382
Accrued interest and other assets		289,393			289,139			256,906			243,877			233,288			289,267			232,615
Total Assets	$	6,219,754		$	6,266,408		$	6,270,480		$	6,408,479		$	6,621,021		$	6,242,952		$	6,634,208

LIABILITIES
Deposits
Interest-bearing	$	1,130,503		$	1,088,791		$	1,086,685		$	1,029,350		$	1,139,001		$	1,109,762		$	1,095,093
Savings		1,636,821			1,585,065			1,490,132			1,412,441			1,341,194			1,611,086			1,329,847
Time		1,634,779			1,757,668			1,861,296			2,007,138			2,090,776			1,695,884			2,132,854
Total interest-bearing deposits		4,402,103			4,431,524			4,438,113			4,448,929			4,570,971			4,416,732			4,557,794
Noninterest-bearing		734,674			733,242			741,343			721,501			740,011			733,962			757,107
Total deposits		5,136,777			5,164,766			5,179,456			5,170,430			5,310,982			5,150,694			5,314,901
Federal funds purchased and securities sold under agreements to repurchase		95,297			89,535			63,489			50,580			37,353			92,432			37,880
Long-term debt		102,506			119,932			128,998			281,170			389,972			111,171			394,880
Other long-term debt		20,393			20,620			20,620			20,620			20,620			20,506			20,620
Total borrowed funds		218,196			230,087			213,107			352,370			447,945			224,109			453,380
Accrued interest and other liabilities		157,031			176,493			180,901			201,567			191,043			166,708			190,641
Total Liabilities		5,512,004			5,571,346			5,573,464			5,724,367			5,949,970			5,541,511			5,958,922

SHAREHOLDERS' EQUITY
Preferred stock		0			0			0			0			0			0			23,629
Common stock		577,417			579,790			579,701			578,810			580,299			578,597			564,949
Retained earnings		318,466			308,841			306,923			294,346			282,634			313,680			280,218
Accumulated other comprehensive loss		(10,488	)		(13,251	)		(8,584	)		(8,021	)		(8,320	)		(11,862	)		(9,092	)
Treasury stock, at cost		(177,645	)		(180,318	)		(181,024	)		(181,023	)		(183,562	)		(178,974	)		(184,418	)
Total Shareholders' Equity		707,750			695,062			697,016			684,112			671,051			701,441			675,286
Total Liabilities and Shareholders' Equity	$	6,219,754		$	6,266,408		$	6,270,480		$	6,408,479		$	6,621,021		$	6,242,952		$	6,634,208

- 7 -

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS

(Dollars in thousands)

(Unaudited)

	Quarterly Averages																		Year-to-Date Averages
	Jun. 30, 2011						Mar. 31, 2011						Jun. 30, 2010						Jun. 30, 2011						Jun. 30, 2010
	Balance			Yield			Balance			Yield			Balance			Yield			Balance			Yield			Balance			Yield
Earning assets
Investment securities	$	1,093,870			2.67	%	$	1,045,292			2.72	%	$	597,991			3.82	%	$	1,069,715			2.69	%	$	578,402			3.95	%
Interest-bearing deposits with other banks		375,434			0.35	%		276,837			0.41	%		554,333			0.33	%		326,408			0.38	%		474,978			0.34	%
Gross loans, including covered loans and indemnification asset (2)		4,264,300			6.60	%		4,450,095			6.63	%		4,848,436			6.60	%		4,356,684			6.62	%		4,932,734			6.72	%
Total earning assets		5,733,604			5.44	%		5,772,224			5.63	%		6,000,760			5.74	%		5,752,807			5.53	%		5,986,114			5.95	%

Nonearning assets
Allowance for loan and lease losses		(94,202	)					(83,155	)					(60,444	)					(88,709	)					(60,169	)
Cash and due from banks		118,829						111,953						273,162						115,410						304,573
Accrued interest and other assets		461,523						465,386						407,543						463,444						403,690
Total assets	$	6,219,754					$	6,266,408					$	6,621,021					$	6,242,952					$	6,634,208

Interest-bearing liabilities
Total interest-bearing deposits	$	4,402,103			0.98	%	$	4,431,524			1.04	%	$	4,570,971			1.34	%	$	4,416,732			1.01	%	$	4,557,794			1.37	%
Borrowed funds
Short-term borrowings		95,297			0.21	%		89,535			0.20	%		37,353			0.18	%		92,432			0.21	%		37,880			0.19	%
Long-term debt		102,506			3.67	%		119,932			3.68	%		389,972			2.63	%		111,171			3.68	%		394,880			2.61	%
Other long-term debt		20,393			3.87	%		20,620			3.82	%		20,620			6.21	%		20,506			3.85	%		20,620			6.20	%
Total borrowed funds		218,196			2.17	%		230,087			2.34	%		447,945			2.59	%		224,109			2.26	%		453,380			2.57	%
Total interest-bearing liabilities		4,620,299			1.04	%		4,661,611			1.11	%		5,018,916			1.45	%		4,640,841			1.07	%		5,011,174			1.48	%

Noninterest-bearing liabilities
Noninterest-bearing demand deposits		734,674						733,242						740,011						733,962						757,107
Other liabilities		157,031						176,493						191,043						166,708						190,641
Shareholders' equity		707,750						695,062						671,051						701,441						675,286
Total liabilities & shareholders' equity	$	6,219,754					$	6,266,408					$	6,621,021					$	6,242,952					$	6,634,208

Net interest income (1)	$	65,867					$	67,335					$	67,738					$	133,202					$	139,758
Net interest spread (1)					4.40	%					4.52	%					4.29	%					4.46	%					4.47	%
Net interest margin (1)					4.61	%					4.73	%					4.53	%					4.67	%					4.71	%

(1) Not tax equivalent.

(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

- 8 -

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	$	(128	)	$	399		$	271		$	(1,714	)	$	3,297		$	1,583		$	(3,602	)	$	6,555		$	2,953
Interest-bearing deposits with other banks		(43	)		89			46			25			(156	)		(131	)		87			(278	)		(191	)
Gross loans, including covered loans and indemnification asset (2)		(309	)		(2,254	)		(2,563	)		46			(9,619	)		(9,573	)		(2,472	)		(18,907	)		(21,379	)
Total earning assets		(480	)		(1,766	)		(2,246	)		(1,643	)		(6,478	)		(8,121	)		(5,987	)		(12,630	)		(18,617	)
Interest-bearing liabilities
Total interest-bearing deposits	$	(680	)	$	47		$	(633	)	$	(4,128	)	$	(413	)	$	(4,541	)	$	(8,081	)	$	(708	)	$	(8,789	)
Borrowed funds
Short-term borrowings		1			3			4			2			30			32			3			55			58
Long-term debt		(5	)		(147	)		(152	)		1,009			(2,628	)		(1,619	)		2,083			(5,170	)		(3,087	)
Other long-term debt		3			-			3			(120	)		(2	)		(122	)		(241	)		(2	)		(243	)
Total borrowed funds		(1	)		(144	)		(145	)		891			(2,600	)		(1,709	)		1,845			(5,117	)		(3,272	)
Total interest-bearing liabilities		(681	)		(97	)		(778	)		(3,237	)		(3,013	)		(6,250	)		(6,236	)		(5,825	)		(12,061	)

Net interest income (1)	$	201		$	(1,669	)	$	(1,468	)	$	1,594		$	(3,465	)	$	(1,871	)	$	249		$	(6,805	)	$	(6,556	)

(1) Not tax equivalent.

(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

- 9 -

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(excluding covered assets)

(Dollars in thousands)

(Unaudited)

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

ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	53,645		$	57,235		$	57,249		$	57,811		$	56,642		$	57,235			59,311
Provision for uncovered loan and lease losses		5,756			647			9,741			6,287			6,158			6,403			17,536
Gross charge-offs
Commercial		383			432			5,131			762			1,156			815			7,431
Real estate - construction		1,213			1,190			500			3,607			2,386			2,403			4,512
Real estate - commercial		2,791			2,089			1,887			2,013			359			4,880			4,291
Real estate - residential		406			108			196			717			246			514			780
Installment		177			72			231			205			304			249			718
Home equity		923			262			1,846			389			580			1,185			1,264
All other		339			448			494			431			426			787			946
Total gross charge-offs		6,232			4,601			10,285			8,124			5,457			10,833			19,942
Recoveries
Commercial		222			100			57			334			120			322			229
Real estate - construction		27			0			0			0			24			27			24
Real estate - commercial		38			35			243			728			99			73			111
Real estate - residential		29			9			6			11			4			38			7
Installment		82			98			116			116			127			180			287
Home equity		12			25			74			21			10			37			97
All other		92			97			34			65			84			189			151
Total recoveries		502			364			530			1,275			468			866			906
Total net charge-offs		5,730			4,237			9,755			6,849			4,989			9,967			19,036
Ending allowance for uncovered loan and lease losses	$	53,671		$	53,645		$	57,235		$	57,249		$	57,811		$	53,671		$	57,811

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial		0.08	%		0.17	%		2.72	%		0.23	%		0.56	%		0.12	%		1.90	%
Real estate - construction		3.42	%		3.05	%		1.15	%		7.64	%		4.68	%		3.22	%		4.17	%
Real estate - commercial		0.97	%		0.73	%		0.56	%		0.45	%		0.09	%		0.85	%		0.77	%
Real estate - residential		0.56	%		0.15	%		0.27	%		0.95	%		0.32	%		0.35	%		0.51	%
Installment		0.58	%		(0.16	)%		0.64	%		0.49	%		0.92	%		0.21	%		1.11	%
Home equity		1.07	%		0.28	%		2.07	%		0.43	%		0.69	%		0.68	%		0.71	%
All other		2.68	%		4.09	%		6.26	%		5.05	%		4.89	%		3.36	%		5.67	%
Total net charge-offs		0.83	%		0.61	%		1.39	%		0.97	%		0.71	%		0.72	%		1.36	%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans
Commercial	$	9,811		$	9,918		$	13,729		$	17,320		$	12,874		$	9,811		$	12,874
Real estate - construction		13,237			14,199			12,921			13,454			18,890			13,237			18,890
Real estate - commercial		26,213			30,846			28,342			27,945			28,272			26,213			28,272
Real estate - residential		4,564			4,419			4,607			4,801			4,571			4,564			4,571
Installment		335			262			150			279			267			335			267
Home equity		2,376			2,404			2,553			2,358			1,797			2,376			1,797
Total nonaccrual loans		56,536			62,048			62,302			66,157			66,671			56,536			66,671
Restructured loans		17,482			18,532			17,613			13,365			12,752			17,482			12,752
Total nonperforming loans		74,018			80,580			79,915			79,522			79,423			74,018			79,423
Other real estate owned (OREO)		16,313			14,953			17,907			18,305			16,818			16,313			16,818
Total nonperforming assets		90,331			95,533			97,822			97,827			96,241			90,331			96,241
Accruing loans past due 90 days or more		149			241			370			233			276			149			276
Total underperforming assets	$	90,480		$	95,774		$	98,192		$	98,060		$	96,517		$	90,480		$	96,517
Total classified assets	$	184,786		$	185,738		$	202,140		$	212,552		$	201,859		$	184,786		$	201,859

CREDIT QUALITY RATIOS (excluding covered assets)
Allowance for loan and lease losses to
Nonaccrual loans		94.93	%		86.46	%		91.87	%		86.54	%		86.71	%		94.93	%		86.71	%
Nonperforming loans		72.51	%		66.57	%		71.62	%		71.99	%		72.79	%		72.51	%		72.79	%
Total ending loans		1.92	%		1.93	%		2.03	%		2.07	%		2.07	%		1.92	%		2.07	%
Nonperforming loans to total loans		2.65	%		2.90	%		2.84	%		2.88	%		2.84	%		2.65	%		2.84	%
Nonperforming assets to
Ending loans, plus OREO		3.22	%		3.42	%		3.45	%		3.51	%		3.42	%		3.22	%		3.42	%
Total assets		1.50	%		1.51	%		1.57	%		1.59	%		1.46	%		1.50	%		1.46	%

- 10 -

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share)

(Unaudited)

																Six months ended,
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
	2011			2011			2010			2010			2010			2011			2010
PER COMMON SHARE
Market Price
High	$	17.20		$	18.91		$	19.41		$	17.10		$	21.32		$	18.91		$	21.32
Low	$	15.04		$	15.65		$	16.21		$	14.19		$	14.95		$	15.04		$	13.89
Close	$	16.69		$	16.69		$	18.48		$	16.68		$	14.95		$	16.69		$	14.95

Average common shares outstanding - basic		57,694,792			57,591,568			57,573,544			57,570,709			57,539,901			57,642,970			56,356,877
Average common shares outstanding - diluted		58,734,662			58,709,037			58,688,415			58,531,505			58,604,039			58,722,448			57,365,322
Ending common shares outstanding		58,259,440			58,286,890			58,064,977			58,057,934			58,062,655			58,259,440			58,062,655

REGULATORY CAPITAL	Preliminary															Preliminary
Tier 1 Capital	$	681,492		$	691,559		$	680,145		$	670,121		$	658,623		$	681,492		$	658,623
Tier 1 Ratio		20.15	%		20.49	%		18.45	%		18.64	%		18.15	%		20.15	%		18.15	%
Total Capital	$	724,735		$	734,714		$	727,252		$	715,938		$	704,752		$	724,735		$	704,752
Total Capital Ratio		21.43	%		21.77	%		19.72	%		19.91	%		19.42	%		21.43	%		19.42	%
Total Capital in excess of minimum requirement	$	454,189		$	464,718		$	432,274		$	428,314		$	414,434		$	454,189		$	414,434
Total Risk-Weighted Assets	$	3,381,822		$	3,374,945		$	3,687,224		$	3,595,295		$	3,628,978		$	3,381,822		$	3,628,978
Leverage Ratio		11.01	%		11.08	%		10.89	%		10.50	%		9.99	%		11.01	%		9.99	%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets		11.95	%		11.21	%		11.16	%		11.23	%		10.35	%		11.95	%		10.35	%
Ending tangible shareholders' equity to ending tangible assets		11.11	%		10.40	%		10.33	%		10.38	%		9.55	%		11.11	%		9.55	%
Average shareholders' equity to average assets		11.38	%		11.09	%		11.12	%		10.68	%		10.14	%		11.24	%		10.18	%
Average common shareholders' equity to average assets		11.38	%		11.09	%		11.12	%		10.68	%		10.14	%		11.24	%		9.82	%
Average tangible shareholders' equity to average tangible assets		10.56	%		10.28	%		10.29	%		9.86	%		9.33	%		10.42	%		9.38	%
Average tangible common shareholders' equity to average tangible assets		10.56	%		10.28	%		10.29	%		9.86	%		9.33	%		10.42	%		9.02	%

- 11 -

Attached files

FIRST FINANCIAL BANCORP /OH/ Reports

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