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

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8-K - 8-K - FIRST FINANCIAL BANCORP /OH/	a8kearningsrelease4q15.htm

EXHIBIT 99.1

First Financial Bancorp Reports Fourth Quarter 2015 Financial Results

Full Year Net Income Increases 15.5%


•	Net Income of $19.8 million (4Q) and $75.1 million (Full Year)


•	Earnings per Share of $0.32 (4Q) and $1.21 (Full Year)


•	Return on Average Assets of 0.99% (4Q) and 1.00% (Full Year)


•	Return on Average Tangible Common Equity of 12.98% (4Q) and 12.66% (Full Year)


•	Net Interest Margin of 3.69% (4Q) and 3.66% (Full Year)

Cincinnati, Ohio - January 21, 2016 - First Financial Bancorp (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the fourth quarter and full year 2015. For the three months ended December 31, 2015, the Company reported net income of $19.8 million, or $0.32 per diluted common share, compared to net income of $18.7 million, or $0.30 per diluted common share, in the third quarter of 2015 and $18.6 million, or $0.30 per diluted common share, in the fourth quarter of 2014. For the twelve months ended December 31, 2015, the Company reported net income of $75.1 million, or $1.21 per diluted common share, compared to net income of $65.0 million, or $1.09 per diluted common share, in 2014.

Fourth quarter results included approximately $1.0 million of pre-tax, non-operating expenses which were primarily related to severance benefits accrued during the period. Excluding these items, net income was $20.5 million, or $0.33 per diluted common share, return on average assets was 1.02% and return on average tangible common equity was 13.40%.

Full year results included approximately $5.0 million of pre-tax, non-operating expenses, which were primarily related to the severance expense noted above, expenses related to the Oak Street acquisition and adjustments to reserves for litigation related items. Excluding these items, net income for the twelve months ended December 31, 2015 was $78.3 million, or $1.27 per diluted common share, return on average assets was 1.04% and return on average tangible common equity was 13.20%.

Claude Davis, Chief Executive Officer, commented, “2015 was an exciting year for First Financial. During the year, we celebrated the first anniversary of our expansion into the Columbus, Ohio market, announced and closed the acquisition of Oak Street, executed a $120 million subordinated debt offering and marked our 100th consecutive quarter of profitability. In addition, we recently unveiled a fresh and exciting new website that enhances product and service delivery to our clients through a more modern online experience. I am very pleased with our progress toward building a company that can consistently produce top-quartile results."

"Although net interest margin has been constrained by the prolonged low interest rate environment, we believe we are well positioned to take advantage of rising rates and continue to be excited about the growth opportunities throughout our footprint. Organic loan growth was strong again during the fourth quarter, Oak Street is performing as expected and our ability to successfully grow low-cost core deposits continues to provide competitive advantage as we compete for new business."

"As we look forward to another successful year in 2016, our focus remains centered on effectively and efficiently serving the financial needs of our commercial, small business, consumer and wealth management clients.”

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income for the fourth quarter was $66.1 million as compared to $63.2 million for the third quarter 2015 and $61.1 million for the fourth quarter 2014. Compared to the linked quarter, total interest income increased $4.6 million, or 6.6%, while total interest expense increased $1.6 million, or 29.6%. Net interest margin was 3.69%, on a fully tax equivalent basis, for the fourth quarter compared to 3.67% for the third quarter 2015 and 3.72% for the fourth quarter 2014.

Interest income earned on loans increased $3.8 million compared to the prior quarter, as average loan balances increased $212.3 million during the period. The effective yield earned on the loan portfolio increased by 10 bps, to 4.62%, compared to the third quarter. This increase was primarily related to the full-quarter impact of the Oak Street acquisition which closed during the third quarter.

Interest income earned on investment securities increased $0.7 million compared to the prior quarter with average balances increasing $86.1 million. The effective yield earned on the investment portfolio increased 5 bps to 2.44% as the Company continued to reinvest cash flows into predominately fixed-rate instruments during the quarter.

Interest expense increased by $1.6 million, compared to the prior quarter, due primarily to a full quarter's impact of the $120 million subordinated debt issued during the third quarter as well as a $16.7 million increase in average borrowed funds and a $229.2 million increase in average interest-bearing deposits. Additionally, and as previously reported, accelerated amortization of the fair-value mark on acquired, long-term FHLB debt, which was prepaid during the third quarter, reduced interest expense by $0.5 million during that period.

The effective cost of borrowed funds increased by 68 bps to 103 bps, primarily related to the full-quarter impact of the subordinated debt, while the cost of interest-bearing deposits was unchanged at 42 bps when compared to the third quarter.

NON-INTEREST INCOME

The Company's non-interest income was $15.8 million for the fourth quarter of 2015 compared to $20.4 million for the third quarter of 2015 and $16.9 million for the fourth quarter of 2014. The $4.5 million decrease versus the linked quarter was primarily related to a $3.0 million decrease in accelerated discount on covered / formerly covered loans, a $0.7 million decrease in fee income related to the Company's client derivative program, a $0.5 million decrease in income distributions from limited partnerships, a $0.4 million decrease in gain on sale of mortgage loans, and a $0.4 million decrease in gain on sale of investment securities, partially offset by a $0.8 million increase in FDIC indemnification income.

NON-INTEREST EXPENSE

The Company's non-interest expense was $51.3 million for the fourth quarter of 2015 compared to $53.0 million for the third quarter of 2015 and $49.7 million for the fourth quarter of 2014. The $1.7 million decrease over the linked quarter was primarily related to $4.0 million of previously disclosed third quarter expenses not expected to recur, partially offset by a $0.8 million increase in severance, a $0.6 million

increase in health care related costs, a $0.5 million increase in losses on OREO and a $0.4 million increase in performance incentives.

BALANCE SHEET & CAPITAL

Total assets were $8.1 billion, total loans were $5.4 billion and investment securities were $2.0 billion as of December 31, 2015. Total assets increased by $266.9 million, or 13.4% annualized, from the prior quarter and by $929.6 million, or 12.9%, over the prior year. Total loans increased by $172.7 million, or 13.1% annualized, from the prior quarter and by $611.5 million, or 12.8%, over the prior year. Investment securities increased by $91.5 million, or 19.3% annualized, from the prior quarter and increased by $209.5 million, or 11.9%, over the prior year.

Total deposits were $6.2 billion as of December 31, 2015, an increase of $98.2 million, or 6.4% annualized, compared to the prior quarter and $523.9 million, or 9.3%, higher than a year ago. Borrowed funds were $1.1 billion as of December 31, 2015, compared to $883.0 million as of September 30, 2015 and $709.6 million as of December 31, 2014.

During the quarter, the Company repurchased 91,032 of its shares at a weighted average price of $18.85 and has now repurchased 1,490,867 of the 5,000,000 shares authorized in 2012. As of December 31, 2015, the Company had total shareholders' equity of $809.4 million, a decrease of $3.6 million, or 1.8% annualized, over the prior quarter and an increase of $25.3 million, or 3.2%, over the prior year. The linked quarter decline in total shareholders' equity was primarily related to the impact to Other Comprehensive Income from the year-end valuation of the Company's pension plan.

The Company's regulatory capital ratios remain strong and, as of December 31, 2015, were as follows: leverage ratio of 8.33%, total capital ratio of 13.04%, tier 1 capital ratio of 10.29% and tangible common equity ratio of 7.53%. The Company's tangible book value per share was $9.69 as of December 31, 2015.

ASSET QUALITY

Fourth quarter provision expense was $1.9 million and the total allowance for loan and lease losses as of December 31, 2015 was $53.4 million. The allowance as a percentage of period-end loans was 0.99% at the end of the fourth quarter which represents a 3 bps decline from 1.02% at the end of the third quarter. The balance of the Company's total allowance and loan marks, net of the indemnification asset, was 1.11% of total loans and leases as of December 31, 2015 which represents a 6 bps decline from 1.17% as of September 30, 2015. This change is largely attributable to the strong organic loan growth during the fourth quarter as well as the decline in nonaccrual loans and other asset quality improvements during the period.

For the fourth quarter, net charge-offs totaled $1.8 million, a decrease of $0.4 million, or 17.9% compared to the linked quarter, and were 0.14% of average loans on an annualized basis. For the full year 2015, net charge-offs were $9.1 million or 0.18% of average loans. Nonaccrual loans decreased $7.7 million, or 21.6%, to $28.0 million as of December 31, 2015. Total classified assets increased $3.7 million, or 2.9% to $132.4 million as of December 31, 2015, as payoffs and other resolution activities during the period were offset by the downgrade of a single performing commercial relationship during the fourth quarter on which First Financial expects to receive all contractual principal and interest.

Teleconference / Webcast Information

First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, January 22, 2016 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required). The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10079287. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.

Press Release and Additional Information on Website

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

About First Financial Bancorp

First Financial Bancorp is a Cincinnati, Ohio based bank holding company. As of December 31, 2015, the Company had $8.1 billion in assets, $5.4 billion in loans, $6.2 billion in deposits and $809.4 million in shareholders’ equity. The Company’s subsidiary, First Financial Bank, N.A., founded in 1863, provides banking and financial services products through its four lines of business: commercial, consumer, wealth management and mortgage. The commercial, consumer and mortgage units provide traditional banking services to business and retail clients. First Financial Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.3 billion in assets under management as of December 31, 2015. The Company’s strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 106 banking centers. Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.

Forward-Looking Statement

Certain statements contained in this release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Examples of forward-looking statements include, but are not limited to, projections of revenues, income or loss, earnings or loss per share, the payment or non-payment of dividends, capital structure and other financial items, statements of plans and objectives of First Financial or its management or board of directors and statements of future economic performances and statements of assumptions underlying such statements. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” ‘‘intends,’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Management’s analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to: economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; the effect of and changes in policies and laws or regulatory agencies (notably the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act); management’s ability to effectively execute its business plan; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the Company’s ability to comply with the terms of loss sharing agreements with the FDIC; the effect of changes in accounting policies and practices; and the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as well as its other filings with the SEC, for a more detailed discussion of these risks, uncertainties and other factors that could cause actual results to differ from those discussed in the forward-looking statements. Such forward-looking statements are meaningful only on the date when such statements are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such a statement is made to reflect the occurrence of unanticipated events.

Contact Information

Investors/Analysts Media

Eric Stables Adam Kiefaber

Investor Relations Media Relations

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

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

Selected Financial Information

December 31, 2015

(unaudited)



Contents	Page
Consolidated Financial Highlights	2
Consolidated Quarterly Statements of Income	3
Consolidated Statements of Condition	4
Average Consolidated Statements of Condition	5
Net Interest Margin Rate / Volume Analysis	6
Credit Quality	7
Capital Adequacy	8



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

	Three Months Ended,															Twelve months ended,
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,
	2015			2015			2015			2015			2014			2015			2014
RESULTS OF OPERATIONS
Net income	$	19,820		$	18,673		$	18,949		$	17,621		$	18,599		$	75,063		$	65,000
Net earnings per share - basic	$	0.33		$	0.31		$	0.31		$	0.29		$	0.31		$	1.23		$	1.11
Net earnings per share - diluted	$	0.32		$	0.30		$	0.31		$	0.29		$	0.30		$	1.21		$	1.09
Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16		$	0.64		$	0.61

KEY FINANCIAL RATIOS
Return on average assets	0.99		%	0.97		%	1.05		%	0.99		%	1.02		%	1.00		%	0.96		%
Return on average shareholders' equity	9.62		%	9.12		%	9.49		%	9.06		%	9.46		%	9.33		%	8.94		%
Return on average tangible shareholders' equity	12.98		%	12.33		%	11.60		%	11.12		%	11.63		%	12.66		%	11.18		%

Net interest margin	3.63		%	3.61		%	3.56		%	3.61		%	3.67		%	3.60		%	3.71		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.69		%	3.67		%	3.62		%	3.67		%	3.72		%	3.66		%	3.76		%

Ending shareholders' equity as a percent of ending assets	9.93		%	10.32		%	10.87		%	10.98		%	10.86		%	9.93		%	10.86		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	7.53		%	7.84		%	9.08		%	9.16		%	9.02		%	7.53		%	9.02		%
Risk-weighted assets	9.47		%	9.90		%	11.63		%	11.64		%	12.02		%	9.47		%	12.02		%

Average shareholders' equity as a percent of average assets	10.29		%	10.67		%	11.05		%	10.95		%	10.77		%	10.73		%	10.75		%
Average tangible shareholders' equity as a percent of
average tangible assets	7.83		%	8.12		%	9.23		%	9.11		%	8.94		%	8.13		%	8.79		%

Book value per share	$	13.13		$	13.17		$	13.00		$	12.90		$	12.76		$	13.13		$	12.76
Tangible book value per share	$	9.69		$	9.74		$	10.65		$	10.54		$	10.38		$	9.69		$	10.38

Common equity tier 1 ratio ⁽²⁾	10.28		%	10.51		%	12.34		%	12.29		%	12.69		%	10.28		%	12.69		%
Tier 1 ratio ⁽²⁾	10.29		%	10.52		%	12.35		%	12.29		%	12.69		%	10.29		%	12.69		%
Total capital ratio ⁽²⁾	13.04		%	13.37		%	13.31		%	13.27		%	13.71		%	13.04		%	13.71		%
Leverage ratio ⁽²⁾	8.33		%	8.58		%	9.77		%	9.67		%	9.44		%	8.33		%	9.44		%

AVERAGE BALANCE SHEET ITEMS
Loans ⁽³⁾	$	5,248,465		$	5,032,708		$	4,793,471		$	4,770,671		$	4,758,374		$	4,962,834		$	4,290,953
FDIC indemnification asset	18,437			19,848			20,744			22,112			24,172			20,274			32,436
Investment securities	1,934,173			1,848,083			1,782,785			1,762,622			1,811,941			1,832,430			1,824,107
Interest-bearing deposits with other banks	18,920			37,468			19,960			21,255			22,617			24,430			16,507
Total earning assets	$	7,219,995		$	6,938,107		$	6,616,960		$	6,576,660		$	6,617,104		$	6,839,968		$	6,164,003
Total assets	$	7,950,278		$	7,611,389		$	7,243,886		$	7,201,313		$	7,241,869		$	7,504,069		$	6,760,959
Noninterest-bearing deposits	$	1,402,283		$	1,344,049		$	1,325,485		$	1,286,067		$	1,290,754		$	1,339,802		$	1,169,851
Interest-bearing deposits	4,845,056			4,615,886			4,446,248			4,361,525			4,372,529			4,568,637			3,987,323
Total deposits	$	6,247,339		$	5,959,935		$	5,771,733		$	5,647,592		$	5,663,283		$	5,908,439		$	5,157,174
Borrowings	$	763,408		$	746,706		$	587,225		$	691,012		$	733,726		$	697,422		$	804,584
Shareholders' equity	$	817,756		$	812,396		$	800,598		$	788,511		$	780,131		$	804,916		$	727,015

CREDIT QUALITY RATIOS
Allowance to ending loans	0.99		%	1.02		%	1.09		%	1.11		%	1.11		%	0.99		%	1.11		%
Allowance to nonaccrual loans	190.73		%	149.33		%	133.28		%	107.98		%	109.06		%	190.73		%	109.06		%
Allowance to nonperforming loans	93.89		%	95.34		%	88.49		%	82.18		%	82.08		%	93.89		%	82.08		%
Nonperforming loans to total loans	1.06		%	1.07		%	1.23		%	1.36		%	1.35		%	1.06		%	1.35		%
Nonperforming assets to ending loans, plus OREO	1.30		%	1.36		%	1.56		%	1.79		%	1.81		%	1.30		%	1.81		%
Nonperforming assets to total assets	0.86		%	0.90		%	1.03		%	1.18		%	1.21		%	0.86		%	1.21		%
Net charge-offs to average loans (annualized)	0.14		%	0.17		%	0.27		%	0.16		%	0.27		%	0.18		%	0.28		%

(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) December 31, 2015 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.



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

	Three months ended,								Twelve months ended,
	Dec. 31,								Dec. 31,
	2015			2014			% Change		2015			2014			% Change
Interest income
Loans, including fees	$	62,502		$	57,087		9.5	%	$	230,246		$	208,836		10.3	%
Investment securities
Taxable	10,702			9,905			8.0	%	39,577			40,924			(3.3	)%
Tax-exempt	1,192			1,060			12.5	%	4,611			3,560			29.5	%
Total investment securities interest	11,894			10,965			8.5	%	44,188			44,484			(0.7	)%
Other earning assets	(1,164		)	(1,299		)	10.4	%	(4,675		)	(5,461		)	14.4	%
Total interest income	73,232			66,753			9.7	%	269,759			247,859			8.8	%

Interest expense
Deposits	5,172			5,013			3.2	%	19,474			16,153			20.6	%
Short-term borrowings	434			293			48.1	%	1,364			1,268			7.6	%
Long-term borrowings	1,543			308			401.0	%	2,419			1,813			33.4	%
Total interest expense	7,149			5,614			27.3	%	23,257			19,234			20.9	%
Net interest income	66,083			61,139			8.1	%	246,502			228,625			7.8	%
Provision for loan and lease losses	1,864			2,052			(9.2	)%	9,641			1,528			531.0	%
Net interest income after provision for loan and lease losses	64,219			59,087			8.7	%	236,861			227,097			4.3	%

Noninterest income
Service charges on deposit accounts	4,755			5,102			(6.8	)%	19,015			20,274			(6.2	)%
Trust and wealth management fees	3,086			3,376			(8.6	)%	13,128			13,634			(3.7	)%
Bankcard income	3,077			2,639			16.6	%	11,578			10,740			7.8	%
Net gains from sales of loans	1,325			1,571			(15.7	)%	6,471			4,364			48.3	%
Net gain on sale of investment securities	2			20			100.0	%	1,505			70			2,050.0	%
FDIC loss sharing income	(164		)	(43		)	(281.4	)%	(2,487		)	365			(781.4	)%
Accelerated discount on covered / formerly covered loans	785			1,759			(55.4	)%	10,791			4,184			157.9	%
Other	2,953			2,518			17.3	%	15,201			10,334			47.1	%
Total noninterest income	15,819			16,942			(6.6	)%	75,202			63,965			17.6	%

Noninterest expenses
Salaries and employee benefits	29,632			28,140			5.3	%	111,792			107,702			3.8	%
Net occupancy	4,337			4,806			(9.8	)%	18,232			19,187			(5.0	)%
Furniture and equipment	2,185			2,229			(2.0	)%	8,722			8,554			2.0	%
Data processing	2,843			2,942			(3.4	)%	10,863			12,963			(16.2	)%
Marketing	1,052			1,048			0.4	%	3,723			3,603			3.3	%
Communication	502			551			(8.9	)%	2,161			2,277			(5.1	)%
Professional services	1,833			1,429			28.3	%	9,622			6,170			55.9	%
State intangible tax	598			175			241.7	%	2,331			2,111			10.4	%
FDIC assessments	1,139			1,128			1.0	%	4,446			4,462			(0.4	)%
Loss (gain) - other real estate owned	772			289			167.1	%	1,861			862			115.9	%
Loss sharing expense	414			650			(36.3	)%	1,865			4,686			(60.2	)%
Other	5,977			6,275			(4.7	)%	25,512			23,457			8.8	%
Total noninterest expenses	51,284			49,662			3.3	%	201,130			196,034			2.6	%
Income before income taxes	28,754			26,367			9.1	%	110,933			95,028			16.7	%
Income tax expense	8,934			7,768			15.0	%	35,870			30,028			19.5	%
Net income	$	19,820		$	18,599		6.6	%	$	75,063		$	65,000		15.5	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.33		$	0.31				$	1.23		$	1.11
Net earnings per share - diluted	$	0.32		$	0.30				$	1.21		$	1.09
Dividends declared per share	$	0.16		$	0.16				$	0.64		$	0.61

Return on average assets	0.99		%	1.02		%			1.00		%	0.96		%
Return on average shareholders' equity	9.62		%	9.46		%			9.33		%	8.94		%

Interest income	$	73,232		$	66,753		9.7	%	$	269,759		$	247,859		8.8	%
Tax equivalent adjustment	1,046			946			10.6	%	4,017			3,224			24.6	%
Interest income - tax equivalent	74,278			67,699			9.7	%	273,776			251,083			9.0	%
Interest expense	7,149			5,614			27.3	%	23,257			19,234			20.9	%
Net interest income - tax equivalent	$	67,129		$	62,085		8.1	%	$	250,519		$	231,849		8.1	%

Net interest margin	3.63		%	3.67		%			3.60		%	3.71		%
Net interest margin (fully tax equivalent) ⁽¹⁾	3.69		%	3.72		%			3.66		%	3.76		%

Full-time equivalent employees	1,400			1,369

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.



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

	2015
	Fourth			Third			Second			First			Full			% Change
	Quarter			Quarter			Quarter			Quarter			Year			Linked Qtr.
Interest income
Loans, including fees	$	62,502		$	58,694		$	54,586		$	54,464		$	230,246		6.5	%
Investment securities
Taxable	10,702			9,986			9,281			9,608			39,577			7.2	%
Tax-exempt	1,192			1,163			1,139			1,117			4,611			2.5	%
Total investment securities interest	11,894			11,149			10,420			10,725			44,188			6.7	%
Other earning assets	(1,164		)	(1,168		)	(1,162		)	(1,181		)	(4,675		)	0.3	%
Total interest income	73,232			68,675			63,844			64,008			269,759			6.6	%

Interest expense
Deposits	5,172			4,861			4,621			4,820			19,474			6.4	%
Short-term borrowings	434			374			253			303			1,364			16.0	%
Long-term borrowings	1,543			281			296			299			2,419			449.1	%
Total interest expense	7,149			5,516			5,170			5,422			23,257			29.6	%
Net interest income	66,083			63,159			58,674			58,586			246,502			4.6	%
Provision for loan and lease losses	1,864			2,647			3,070			2,060			9,641			(29.6	)%
Net interest income after provision for loan and lease losses	64,219			60,512			55,604			56,526			236,861			6.1	%

Noninterest income
Service charges on deposit accounts	4,755			4,934			4,803			4,523			19,015			(3.6	)%
Trust and wealth management fees	3,086			3,134			3,274			3,634			13,128			(1.5	)%
Bankcard income	3,077			2,909			2,972			2,620			11,578			5.8	%
Net gains from sales of loans	1,325			1,758			1,924			1,464			6,471			(24.6	)%
Net gain on sale of investment securities	2			409			1,094			0			1,505			100.0	%
FDIC loss sharing income	(164		)	(973		)	(304		)	(1,046		)	(2,487		)	(83.1	)%
Accelerated discount on covered / formerly covered loans	785			3,820			4,094			2,092			10,791			(79.5	)%
Other	2,953			4,364			3,558			4,326			15,201			(32.3	)%
Total noninterest income	15,819			20,355			21,415			17,613			75,202			(22.3	)%

Noninterest expenses
Salaries and employee benefits	29,632			27,768			27,451			26,941			111,792			6.7	%
Net occupancy	4,337			4,510			4,380			5,005			18,232			(3.8	)%
Furniture and equipment	2,185			2,165			2,219			2,153			8,722			0.9	%
Data processing	2,843			2,591			2,657			2,772			10,863			9.7	%
Marketing	1,052			810			973			888			3,723			29.9	%
Communication	502			531			558			570			2,161			(5.5	)%
Professional services	1,833			4,092			1,727			1,970			9,622			(55.2	)%
State intangible tax	598			579			577			577			2,331			3.3	%
FDIC assessments	1,139			1,103			1,114			1,090			4,446			3.3	%
Loss (gain) - other real estate owned	772			196			419			474			1,861			293.9	%
Loss sharing expense	414			574			576			301			1,865			(27.9	)%
Other	5,977			8,073			6,135			5,327			25,512			(26.0	)%
Total noninterest expenses	51,284			52,992			48,786			48,068			201,130			(3.2	)%
Income before income taxes	28,754			27,875			28,233			26,071			110,933			3.2	%
Income tax expense	8,934			9,202			9,284			8,450			35,870			(2.9	)%
Net income	$	19,820		$	18,673		$	18,949		$	17,621		$	75,063		6.1	%

ADDITIONAL DATA
Net earnings per share - basic	$	0.33		$	0.31		$	0.31		$	0.29		$	1.23
Net earnings per share - diluted	$	0.32		$	0.30		$	0.31		$	0.29		$	1.21
Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.64

Return on average assets	0.99		%	0.97		%	1.05		%	0.99		%	1.00		%
Return on average shareholders' equity	9.62		%	9.12		%	9.49		%	9.06		%	9.33		%

Interest income	$	73,232		$	68,675		$	63,844		$	64,008		$	269,759		6.6	%
Tax equivalent adjustment	1,046			1,000			988			983			4,017			4.6	%
Interest income - tax equivalent	74,278			69,675			64,832			64,991			273,776			6.6	%
Interest expense	7,149			5,516			5,170			5,422			23,257			29.6	%
Net interest income - tax equivalent	$	67,129		$	64,159		$	59,662		$	59,569		$	250,519		4.6	%

Net interest margin	3.63		%	3.61		%	3.56		%	3.61		%	3.60		%
Net interest margin (fully tax equivalent)⁽¹⁾	3.69		%	3.67		%	3.62		%	3.67		%	3.66		%

Full-time equivalent employees	1,400			1,394			1,366			1,353

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
N/M = Not meaningful.



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

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

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

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

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

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

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

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

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

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

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.



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

	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			% Change		% Change
	2015			2015			2015			2015			2014			Linked Qtr.		Comparable Qtr.
ASSETS
Cash and due from banks	$	114,841		$	112,298		$	116,318		$	111,011		$	110,122		2.3	%	4.3	%
Interest-bearing deposits with other banks	33,734			24,191			41,027			25,350			22,630			39.4	%	49.1	%
Investment securities available-for-sale	1,190,642			1,069,667			955,764			892,169			840,468			11.3	%	41.7	%
Investment securities held-to-maturity	726,259			756,035			791,839			839,666			867,996			(3.9	)%	(16.3	)%
Other investments	53,725			53,431			53,585			53,393			52,626			0.6	%	2.1	%
Loans held for sale	20,957			26,287			21,151			14,937			11,005			(20.3	)%	90.4	%
Loans
Commercial	1,663,102			1,637,467			1,315,087			1,298,874			1,315,114			1.6	%	26.5	%
Real estate - construction	311,712			276,240			229,256			227,969			197,571			12.8	%	57.8	%
Real estate - commercial	2,258,297			2,169,662			2,171,806			2,120,084			2,140,667			4.1	%	5.5	%
Real estate - residential	512,311			506,653			506,391			496,852			501,894			1.1	%	2.1	%
Installment	41,506			39,974			43,073			43,798			47,320			3.8	%	(12.3	)%
Home equity	466,629			463,629			463,222			456,278			458,627			0.6	%	1.7	%
Credit card	41,217			39,759			39,216			37,886			38,475			3.7	%	7.1	%
Lease financing	93,986			82,679			84,723			81,796			77,567			13.7	%	21.2	%
Total loans	5,388,760			5,216,063			4,852,774			4,763,537			4,777,235			3.3	%	12.8	%
Less
Allowance for loan and lease losses	53,398			53,332			52,876			53,076			52,858			0.1	%	1.0	%
Net loans	5,335,362			5,162,731			4,799,898			4,710,461			4,724,377			3.3	%	12.9	%
Premises and equipment	136,603			139,020			139,170			140,477			141,381			(1.7	)%	(3.4	)%
Goodwill and other intangibles	211,865			211,732			145,465			145,586			145,853			0.1	%	45.3	%
FDIC indemnification asset	17,630			18,931			20,338			20,397			22,666			(6.9	)%	(22.2	)%
Accrued interest and other assets	305,793			306,210			298,817			292,349			278,697			(0.1	)%	9.7	%
Total Assets	$	8,147,411		$	7,880,533		$	7,383,372		$	7,245,796		$	7,217,821		3.4	%	12.9	%

LIABILITIES
Deposits
Interest-bearing demand	$	1,414,291		$	1,330,673		$	1,175,219		$	1,214,882		$	1,225,378		6.3	%	15.4	%
Savings	1,945,805			1,979,627			1,947,566			1,922,815			1,889,473			(1.7	)%	3.0	%
Time	1,406,124			1,440,223			1,262,881			1,277,291			1,255,364			(2.4	)%	12.0	%
Total interest-bearing deposits	4,766,220			4,750,523			4,385,666			4,414,988			4,370,215			0.3	%	9.1	%
Noninterest-bearing	1,413,404			1,330,905			1,330,149			1,299,602			1,285,527			6.2	%	9.9	%
Total deposits	6,179,624			6,081,428			5,715,815			5,714,590			5,655,742			1.6	%	9.3	%
Federal funds purchased and securities sold
under agreements to repurchase	89,325			62,317			68,349			68,142			103,192			43.3	%	(13.4	)%
FHLB short-term borrowings	849,100			701,200			641,700			523,500			558,200			21.1	%	52.1	%
Total short-term borrowings	938,425			763,517			710,049			591,642			661,392			22.9	%	41.9	%
Long-term debt	119,540			119,515			47,084			47,598			48,241			0.0	%	147.8	%
Total borrowed funds	1,057,965			883,032			757,133			639,240			709,633			19.8	%	49.1	%
Accrued interest and other liabilities	100,446			103,061			108,041			96,224			68,369			(2.5	)%	46.9	%
Total Liabilities	7,338,035			7,067,521			6,580,989			6,450,054			6,433,744			3.8	%	14.1	%

SHAREHOLDERS' EQUITY
Common stock	571,155			570,025			571,501			570,623			574,643			0.2	%	(0.6	)%
Retained earnings	388,240			378,258			369,462			360,390			352,893			2.6	%	10.0	%
Accumulated other comprehensive loss	(30,580		)	(17,219		)	(20,715		)	(17,054		)	(21,409		)	77.6	%	42.8	%
Treasury stock, at cost	(119,439		)	(118,052		)	(117,865		)	(118,217		)	(122,050		)	1.2	%	(2.1	)%
Total Shareholders' Equity	809,376			813,012			802,383			795,742			784,077			(0.4	)%	3.2	%
Total Liabilities and Shareholders' Equity	$	8,147,411		$	7,880,533		$	7,383,372		$	7,245,796		$	7,217,821		3.4	%	12.9	%



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

	Quarterly Averages															Year-to-Date Averages
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			December 31,
	2015			2015			2015			2015			2014			2015			2014
ASSETS
Cash and due from banks	$	119,881		$	114,279		$	114,024		$	112,841		$	124,216		$	115,273		$	123,077
Federal funds sold	0			0			0			0			0			0			2,217
Interest-bearing deposits with other banks	18,920			37,468			19,960			21,255			22,617			24,430			14,290
Investment securities	1,934,173			1,848,083			1,782,785			1,762,622			1,811,941			1,832,430			1,824,107
Loans held for sale	18,677			15,185			9,292			8,606			11,774			12,974			10,163
Loans
Commercial	1,612,485			1,464,508			1,318,408			1,300,869			1,282,752			1,425,032			1,188,882
Real estate - construction	295,574			259,972			226,314			215,380			192,626			249,559			135,765
Real estate - commercial	2,180,015			2,164,917			2,117,450			2,129,434			2,158,336			2,148,139			1,891,998
Real estate - residential	505,208			500,544			497,350			496,451			493,895			499,914			461,547
Installment	41,148			42,008			43,393			45,376			49,356			42,967			49,721
Home equity	465,131			462,283			459,414			458,083			456,494			461,250			437,072
Credit card	41,027			39,991			39,272			38,409			38,966			39,683			38,022
Lease financing	89,200			83,300			82,578			78,063			74,175			83,316			77,783
Total loans	5,229,788			5,017,523			4,784,179			4,762,065			4,746,600			4,949,860			4,280,790
Less
Allowance for loan and lease losses	53,731			54,398			54,662			53,648			54,656			54,111			56,828
Net loans	5,176,057			4,963,125			4,729,517			4,708,417			4,691,944			4,895,749			4,223,962
Premises and equipment	138,689			139,457			140,117			141,153			141,871			139,846			137,506
Goodwill and other intangibles	211,722			179,333			145,500			145,689			145,872			170,766			118,403
FDIC indemnification asset	18,437			19,848			20,744			22,112			24,172			20,274			32,436
Accrued interest and other assets	313,722			294,611			281,947			278,618			267,462			292,327			274,798
Total Assets	$	7,950,278		$	7,611,389		$	7,243,886		$	7,201,313		$	7,241,869		$	7,504,069		$	6,760,959

LIABILITIES
Deposits
Interest-bearing demand	$	1,423,915		$	1,230,621		$	1,220,391		$	1,176,263		$	1,217,852		$	1,263,388		$	1,157,783
Savings	2,005,100			2,015,373			1,950,127			1,914,723			1,904,568			1,971,699			1,756,682
Time	1,416,041			1,369,892			1,275,730			1,270,539			1,250,109			1,333,550			1,072,858
Total interest-bearing deposits	4,845,056			4,615,886			4,446,248			4,361,525			4,372,529			4,568,637			3,987,323
Noninterest-bearing	1,402,283			1,344,049			1,325,485			1,286,067			1,290,754			1,339,802			1,169,851
Total deposits	6,247,339			5,959,935			5,771,733			5,647,592			5,663,283			5,908,439			5,157,174
Federal funds purchased and securities sold
under agreements to repurchase	79,354			68,505			67,664			77,269			119,712			73,191			119,795
FHLB short-term borrowings	564,522			606,618			472,295			565,918			564,062			552,483			627,181
Total short-term borrowings	643,876			675,123			539,959			643,187			683,774			625,674			746,976
Long-term debt	119,532			71,583			47,266			47,825			49,952			71,748			57,608
Total borrowed funds	763,408			746,706			587,225			691,012			733,726			697,422			804,584
Accrued interest and other liabilities	121,775			92,352			84,330			74,198			64,729			93,292			72,186
Total Liabilities	7,132,522			6,798,993			6,443,288			6,412,802			6,461,738			6,699,153			6,033,944

SHAREHOLDERS' EQUITY
Common stock	570,510			570,723			571,078			573,932			574,588			571,549			574,576
Retained earnings	385,295			378,160			365,847			355,848			347,435			371,387			336,557
Accumulated other comprehensive loss	(18,962		)	(19,725		)	(18,242		)	(20,163		)	(18,841		)	(19,271		)	(23,527		)
Treasury stock, at cost	(119,087		)	(116,762		)	(118,085		)	(121,106		)	(123,051		)	(118,749		)	(160,591		)
Total Shareholders' Equity	817,756			812,396			800,598			788,511			780,131			804,916			727,015
Total Liabilities and Shareholders' Equity	$	7,950,278		$	7,611,389		$	7,243,886		$	7,201,313		$	7,241,869		$	7,504,069		$	6,760,959



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

	Quarterly Averages															Year-to-Date Averages
	December 31, 2015					September 30, 2015					December 31, 2014					December 31, 2015					December 31, 2014
	Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield
Earning assets
Investments:
Investment securities	$	1,934,173		2.44	%	$	1,848,083		2.39	%	$	1,811,941		2.40	%	$	1,832,430		2.41	%	$	1,824,107		2.44	%
Interest-bearing deposits with other banks	18,920			0.29	%	37,468			0.25	%	22,617			0.30	%	24,430			0.27	%	16,507			0.42	%
Gross loans ⁽²⁾	5,266,902			4.62	%	5,052,556			4.52	%	4,782,546			4.63	%	4,983,108			4.53	%	4,323,389			4.70	%
Total earning assets	7,219,995			4.02	%	6,938,107			3.93	%	6,617,104			4.00	%	6,839,968			3.94	%	6,164,003			4.02	%

Nonearning assets
Allowance for loan and lease losses	(53,731		)			(54,398		)			(54,656		)			(54,111		)			(56,828		)
Cash and due from banks	119,881					114,279					124,216					115,273					123,077
Accrued interest and other assets	664,133					613,401					555,205					602,939					530,707
Total assets	$	7,950,278				$	7,611,389				$	7,241,869				$	7,504,069				$	6,760,959

Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	1,423,915		0.13	%	$	1,230,621		0.09	%	$	1,217,852		0.10	%	$	1,263,388		0.10	%	$	1,157,783		0.11	%
Savings	2,005,100			0.20	%	2,015,373			0.19	%	1,904,568			0.31	%	1,971,699			0.21	%	1,756,682			0.25	%
Time	1,416,041			1.03	%	1,369,892			1.05	%	1,250,109			1.02	%	1,333,550			1.06	%	1,072,858			0.98	%
Total interest-bearing deposits	4,845,056			0.42	%	4,615,886			0.42	%	4,372,529			0.45	%	4,568,637			0.43	%	3,987,323			0.41	%
Borrowed funds
Short-term borrowings	643,876			0.27	%	675,123			0.22	%	683,774			0.17	%	625,674			0.22	%	746,976			0.17	%
Long-term debt	119,532			5.12	%	71,583			1.56	%	49,952			2.45	%	71,748			3.37	%	57,608			3.15	%
Total borrowed funds	763,408			1.03	%	746,706			0.35	%	733,726			0.32	%	697,422			0.54	%	804,584			0.38	%
Total interest-bearing liabilities	5,608,464			0.51	%	5,362,592			0.41	%	5,106,255			0.44	%	5,266,059			0.44	%	4,791,907			0.40	%

Noninterest-bearing liabilities
Noninterest-bearing demand deposits	1,402,283					1,344,049					1,290,754					1,339,802					1,169,851
Other liabilities	121,775					92,352					64,729					93,292					72,186
Shareholders' equity	817,756					812,396					780,131					804,916					727,015
Total liabilities & shareholders' equity	$	7,950,278				$	7,611,389				$	7,241,869				$	7,504,069				$	6,760,959

Net interest income ⁽¹⁾	$	66,083				$	63,159				$	61,139				$	246,502				$	228,625
Net interest spread ⁽¹⁾				3.51	%				3.52	%				3.56	%				3.50	%				3.62	%
Net interest margin ⁽¹⁾				3.63	%				3.61	%				3.67	%				3.60	%				3.71	%


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



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


	Linked Qtr. Income Variance								Comparable Qtr. Income Variance									Year-to-Date Income Variance
	Rate		Volume			Total			Rate			Volume			Total			Rate			Volume			Total
Earning assets
Investment securities	$	216	$	529		$	745		$	177		$	752		$	929		$	(497	)	$	201		$	(296	)
Interest-bearing deposits with other banks	4		(14		)	(10		)	0			(3		)	(3		)	(26		)	21			(5		)
Gross loans ⁽²⁾	1,326		2,496			3,822			(86		)	5,639			5,553			(7,654		)	29,855			22,201
Total earning assets	1,546		3,011			4,557			91			6,388			6,479			(8,177		)	30,077			21,900

Interest-bearing liabilities
Total interest-bearing deposits	$	66	$	245		$	311		$	(345	)	$	504		$	159		$	843		$	2,478		$	3,321
Borrowed funds
Short-term borrowings	81		(21		)	60			168			(27		)	141			360			(264		)	96
Long-term debt	643		619			1,262			337			898			1,235			129			477			606
Total borrowed funds	724		598			1,322			505			871			1,376			489			213			702
Total interest-bearing liabilities	790		843			1,633			160			1,375			1,535			1,332			2,691			4,023
Net interest income ⁽¹⁾	$	756	$	2,168		$	2,924		$	(69	)	$	5,013		$	4,944		$	(9,509	)	$	27,386		$	17,877


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



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


	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Full Year			Full Year
	2015			2015			2015			2015			2014			2015			2014
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	53,332		$	52,876		$	53,076		$	52,858		$	53,989		$	52,858		$	62,730
Provision for loan and lease losses	1,864			2,647			3,070			2,060			2,052			9,641			1,528
Gross charge-offs
Commercial	622			536			510			1,481			130			3,149			1,440
Real estate - construction	0			85			0			0			0			85			0
Real estate - commercial	1,137			941			2,515			208			385			4,801			2,329
Real estate - residential	31			101			250			314			221			696			922
Installment	128			124			12			131			78			395			283
Home equity	300			322			163			700			349			1,485			1,745
Other	242			276			237			294			287			1,049			1,158
Covered / formerly covered loans	3,818			1,577			1,585			1,916			4,318			8,896			18,096
Total gross charge-offs	6,278			3,962			5,272			5,044			5,768			20,556			25,973
Recoveries
Commercial	386			357			185			44			75			972			1,260
Real estate - construction	91			0			10			29			0			130			0
Real estate - commercial	597			444			179			354			423			1,574			1,194
Real estate - residential	192			87			23			64			29			366			190
Installment	36			59			44			60			45			199			218
Home equity	102			195			129			154			45			580			231
Other	74			52			71			45			111			242			406
Covered / formerly covered loans	3,002			577			1,361			2,452			1,857			7,392			11,074
Total recoveries	4,480			1,771			2,002			3,202			2,585			11,455			14,573
Total net charge-offs	1,798			2,191			3,270			1,842			3,183			9,101			11,400
Ending allowance for loan and lease losses	$	53,398		$	53,332		$	52,876		$	53,076		$	52,858		$	53,398		$	52,858

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial	0.06		%	0.05		%	0.10		%	0.45		%	0.02		%	0.15		%	0.02		%
Real estate - construction	(0.12		)%	0.13		%	(0.02		)%	(0.05		)%	0.00		%	(0.02		)%	0.00		%
Real estate - commercial	0.10		%	0.10		%	0.48		%	(0.03		)%	(0.01		)%	0.16		%	0.07		%
Real estate - residential	(0.14		)%	0.01		%	0.21		%	0.24		%	0.18		%	0.08		%	0.19		%
Installment	0.94		%	0.65		%	(0.32		)%	0.68		%	0.28		%	0.49		%	0.14		%
Home equity	0.18		%	0.12		%	0.03		%	0.53		%	0.29		%	0.21		%	0.39		%
Other	0.52		%	0.74		%	0.55		%	0.88		%	0.63		%	0.67		%	0.66		%
Covered / formerly covered loans	1.40		%	1.60		%	0.33		%	(0.74		)%	3.06		%	0.58		%	1.88		%
Total net charge-offs	0.14		%	0.17		%	0.27		%	0.16		%	0.27		%	0.18		%	0.28		%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans ⁽¹⁾
Commercial	$	8,231		$	7,191		$	6,683		$	6,926		$	5,817		$	8,231		$	5,817
Real estate - construction	0			79			223			223			223			0			223
Real estate - commercial	9,059			17,228			21,186			29,925			27,752			9,059			27,752
Real estate - residential	5,027			4,940			5,257			6,100			7,241			5,027			7,241
Installment	127			321			305			278			443			127			443
Home equity	2,787			2,702			2,735			2,462			3,064			2,787			3,064
Lease financing	122			0			0			0			0			122			0
Covered / formerly covered loans	2,644			3,252			3,284			3,239			3,929			2,644			3,929
Nonaccrual loans	27,997			35,713			39,673			49,153			48,469			27,997			48,469
Accruing troubled debt restructurings (TDRs)	28,876			20,226			20,084			15,429			15,928			28,876			15,928
Total nonperforming loans	56,873			55,939			59,757			64,582			64,397			56,873			64,397
Other real estate owned (OREO)	13,254			15,187			16,401			20,906			22,674			13,254			22,674
Total nonperforming assets	70,127			71,126			76,158			85,488			87,071			70,127			87,071
Accruing loans past due 90 days or more	108			58			70			85			216			108			216
Total underperforming assets	$	70,235		$	71,184		$	76,228		$	85,573		$	87,287		$	70,235		$	87,287
Classified assets	$	106,468		$	95,597		$	106,280		$	109,090		$	109,122		$	106,468		$	109,122
Covered / formerly covered classified assets	25,963			33,110			33,651			44,727			45,682			25,963			45,682
Total classified assets	$	132,431		$	128,707		$	139,931		$	153,817		$	154,804		$	132,431		$	154,804

CREDIT QUALITY RATIOS
Allowance for loan and lease losses to
Nonaccrual loans	190.73		%	149.33		%	133.28		%	107.98		%	109.06		%	190.73		%	109.06		%
Nonperforming loans	93.89		%	95.34		%	88.49		%	82.18		%	82.08		%	93.89		%	82.08		%
Total ending loans	0.99		%	1.02		%	1.09		%	1.11		%	1.11		%	0.99		%	1.11		%
Allowance and loan marks, net of indemnification asset, to total loans	1.11		%	1.17		%	1.27		%	1.43		%	1.51		%	1.11		%	1.51		%
Nonperforming loans to total loans	1.06		%	1.07		%	1.23		%	1.36		%	1.35		%	1.06		%	1.35		%
Nonperforming assets to
Ending loans, plus OREO	1.30		%	1.36		%	1.56		%	1.79		%	1.81		%	1.30		%	1.81		%
Total assets	0.86		%	0.90		%	1.03		%	1.18		%	1.21		%	0.86		%	1.21		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	0.76		%	0.97		%	1.15		%	1.46		%	1.48		%	0.76		%	1.48		%
Total assets	0.51		%	0.65		%	0.76		%	0.97		%	0.99		%	0.51		%	0.99		%

(1) Nonaccrual loans include nonaccrual TDRs of $9.3 million, $13.6 million, $14.1 million, $20.3 million, and $12.3 million, as of December 31, 2015, September 30, 2015, June 30. 2015, March 31, 2015, and December 31, 2014, respectively.



FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																Twelve months ended,
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2015			2015			2015			2015			2014			2015			2014
PER COMMON SHARE
Market Price
High	$	20.72		$	19.69		$	18.55		$	18.30		$	19.00		$	20.72		$	19.00
Low	$	17.83		$	17.55		$	16.68		$	16.52		$	15.34		$	16.52		$	15.34
Close	$	18.07		$	19.08		$	17.94		$	17.81		$	18.59		$	18.07		$	18.59

Average shares outstanding - basic	60,985,096			61,135,749			61,115,802			61,013,489			60,905,095			61,062,657			58,662,836
Average shares outstanding - diluted	61,861,182			61,987,795			61,915,294			61,731,844			61,627,518			61,847,547			59,392,667
Ending shares outstanding	61,641,680			61,713,633			61,707,847			61,686,887			61,456,547			61,641,680			61,456,547

Total shareholders' equity	$	809,376		$	813,012		$	802,383		$	795,742		$	784,077		$	809,376		$	784,077

REGULATORY CAPITAL ⁽¹⁾	Preliminary															Preliminary
Common equity tier 1 capital	$	648,748		$	638,574		$	697,139		$	686,191		$	673,851		$	648,748		$	673,851
Common equity tier 1 capital ratio	10.28		%	10.51		%	12.34		%	12.29		%	12.69		%	10.28		%	12.69		%
Tier 1 capital	$	648,852		$	638,678		$	697,243		$	686,295		$	673,955		$	648,852		$	673,955
Tier 1 ratio	10.29		%	10.52		%	12.35		%	12.29		%	12.69		%	10.29		%	12.69		%
Total capital	$	822,431		$	812,029		$	751,818		$	740,967		$	728,284		$	822,431		$	728,284
Total capital ratio	13.04		%	13.37		%	13.31		%	13.27		%	13.71		%	13.04		%	13.71		%
Total capital in excess of minimum
requirement	$	317,780		$	326,117		$	300,006		$	294,290		$	303,358		$	317,780		$	303,358
Total risk-weighted assets	$	6,308,139		$	6,073,899		$	5,647,658		$	5,583,461		$	5,311,573		$	6,308,139		$	5,311,573
Leverage ratio	8.33		%	8.58		%	9.77		%	9.67		%	9.44		%	8.33		%	9.44		%

OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	9.93		%	10.32		%	10.87		%	10.98		%	10.86		%	9.93		%	10.86		%
Ending tangible shareholders' equity to ending tangible assets	7.53		%	7.84		%	9.08		%	9.16		%	9.02		%	7.53		%	9.02		%
Average shareholders' equity to average assets	10.29		%	10.67		%	11.05		%	10.95		%	10.77		%	10.73		%	10.75		%
Average tangible shareholders' equity to average tangible assets	7.83		%	8.12		%	9.23		%	9.11		%	8.94		%	8.13		%	8.79		%

REPURCHASE PROGRAM ⁽²⁾
Shares repurchased	91,032			148,935			0			0			0			239,967			40,255
Average share repurchase price	$	18.85		$	18.68		N/A			N/A			N/A			$	18.75		$	17.32
Total cost of shares repurchased	$	1,716		$	2,783		N/A			N/A			N/A			$	4,499		$	697

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

FIRST FINANCIAL BANCORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 21, 2016

Attached files

FIRST FINANCIAL BANCORP /OH/ Reports