First Financial Bancorp Reports First Quarter 2009 Financial Results

CINCINNATI, April 29 /PRNewswire-FirstCall/ --

-- Net income available to common shareholders of $5.2 million and
earnings
per diluted common share of $0.14
-- Capital and liquidity positions remain strong
-- Total regulatory capital exceeded the minimum requirement by $159
million
-- Provision expense exceeded net charge-offs by 15%
-- Average total loans increased $119 million from first quarter 2008 and
$23 million from fourth quarter 2008
-- Average commercial loans increased $274 million from first quarter
2008 and $66 million from fourth quarter 2008

-- Average total deposits increased $42 million or 6% on an annualized
basis from fourth quarter 2008

First Financial Bancorp (Nasdaq: FFBC) today reported first quarter 2009 net
income of $5.7 million, and net income available to common shareholders of
$5.2 million, or $0.14 per diluted common share. This compares with net income
of $2.1 million, or $0.06 per diluted common share for the fourth quarter of
2008, and net income of $7.3 million, or $0.20 per diluted common share for
the first quarter of 2008. Net income available to common shareholders
reflects net income, less dividends paid to the U.S. Treasury on its $80
million investment in First Financial perpetual preferred securities that were
issued as part of the Treasury's Capital Purchase Program (CPP).

The following table presents First Financial's return on average assets and
return on average common shareholders' equity for the first quarter of 2009
and the fourth and first quarters of 2008.

Table I
---------
Quarter
---------
1Q-09 4Q-08 1Q-08
----- ----- -----

Return on Average Assets 0.62% 0.23% 0.89%

Return on Average Common
Shareholders' Equity 7.67% 2.97% 10.66%

During the fourth quarter of 2008, First Financial increased its loan loss
reserve in response to a higher level of net charge-offs and the continued
deterioration in U.S. economic conditions. This resulted in a decrease to
fourth quarter 2008 net income and earnings per diluted share, on an after-tax
basis, of $4.9 million, or $0.13 per share, respectively.

First Financial is also reporting pre-tax, pre-provision income this quarter,
which excludes provision expense and applicable securities gains and losses.
The company believes this metric is useful as it demonstrates a more
representative comparison of operational performance without the volatility of
credit quality that is typically present in times of economic stress, as has
been the case over the past several quarters. The following table presents
pre-tax, pre-provision income, including and excluding applicable securities
gains and losses for the first quarter of 2009 and the fourth and first
quarters of 2008.

Table II ($ in thousands)
----------------
Quarter
-------
1Q-09 4Q-08 1Q-08
----- ----- -----

Pre-Tax Income $8,768 $2,455 $10,881
Excluding
Provision Expense 4,259 10,475 3,223
----- ------ -----
Pre-Tax, Pre-
Provision
Income $13,027 $12,930 $14,104
------- ------- -------

Securities Gains
(Losses) 11 (1) (137) (1) 1,605 (2)
-- ---- -----
Pre-Tax, Pre-
Provision Income,
excluding
Securities
Gains
(Losses) $13,016 $13,067 $12,499
------- ------- -------

(1) Gains (losses) related to the company's investment in 200,000 Federal
Home Loan Mortgage Corporation (FHLMC) perpetual preferred series V
shares.
(2) Includes a $1,585 gain associated with the partial redemption of Visa,
Inc. common shares.

Commenting on the company's results, Claude Davis, First Financial Bancorp's
president and chief executive officer, stated, "We are pleased with our
profitability this quarter including strong loan and deposit growth and a
relatively stable net interest margin given the very difficult economic
environment we are experiencing. The unprecedented level of economic stress
has caused our credit quality to weaken and we expect credit losses to be a
challenge throughout 2009 for us and the entire industry. Our historically
conservative underwriting practices, market discipline and proactive
management of resolution strategies for problem credits have produced asset
quality ratios that continue to be better than our industry peers.

"We continue to invest in and grow our business. During the fourth quarter of
2008, we opened a new banking center in Crown Point, Indiana, and a new
regional banking center in the Dayton, Ohio market. In February, we expanded
our presence in the Cincinnati market with the opening of a new banking center
in the suburb of Madeira. We are excited about our expansion within the
Cincinnati market, and look forward to further expansion throughout our
franchise.

"Despite the numerous challenges facing the financial services industry, we
remain focused on serving our clients," added Mr. Davis. "While the economy is
expected to remain challenging throughout 2009, the strength of our balance
sheet, including our strong capital and liquidity levels, positions us to
continue to meet the daily needs of our clients. First Financial stands ready
to benefit as economic conditions improve."

For additional information on First Financial's comparable financial results,
please refer to the discussions that follow detailing revenue and expense
fluctuations.

DETAILS OF RESULTS
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.

CREDIT QUALITY
The following table presents First Financial's key credit quality metrics.

Table III ($ in thousands)
----------------
Three Months Ended
------------------

March December September June March
31, 2009 31, 2008 30, 2008 30, 2008 31, 2008
--------- --------- --------- ----- ---------
Total
Nonperforming
Loans $24,892 $18,185 $14,038 $15,366 $15,253
Total
Nonperforming
Assets $28,405 $22,213 $18,648 $19,129 $17,621

Nonperforming
Assets as a % of:
Period-End
Loans, Plus
Other Real
Estate Owned 1.04% 0.83% 0.70% 0.71% 0.67%
Total Assets 0.75% 0.60% 0.53% 0.55% 0.53%

Nonperforming
Loans as a %
of Total
Loans 0.91% 0.68% 0.53% 0.57% 0.58%

Allowance for
Loan & Lease
Losses $36,437 $35,873 $30,353 $29,580 $29,718

Allowance for
Loan & Lease
Losses as a
% of:
Period-End
Loans 1.33% 1.34% 1.14% 1.11% 1.14%
Nonaccrual
Loans 147.6% 199.5% 219.5% 199.7% 202.3%
Nonperforming
Loans 146.4% 197.3% 216.2% 192.5% 194.8%

Total Net
Charge-Offs $3,695 $4,955 $2,446 $2,631 $2,562
Annualized Net
Charge-Offs as a
% of Average
Loans & Leases 0.55% 0.73% 0.36% 0.40% 0.40%

First quarter 2009 nonperforming loans increased $6.7 million to $24.9 million
or 0.91% of total loans, from $18.2 million or 0.68% of total loans in the
fourth quarter of 2008. This increase was largely attributable to
deterioration within the commercial lending portfolio; however, this
deterioration was not specific to any industry or geographic concentration.
While the overall credit quality of the commercial lending portfolio has
remained strong throughout most of the economic downturn, late in the fourth
quarter of 2008 and continuing into the first quarter of 2009, the company
began to see a higher level of borrowers experiencing additional stress
related to the prolonged weak economic conditions. During the fourth quarter
of 2008, in anticipation of continued economic deterioration, the company
increased the provision for credit losses, which significantly increased the
allowance for loan and lease losses as a percent of period-end loans to 1.34%
at December 31, 2008.

The first quarter 2009 provision expense, although lower than the fourth
quarter level, represented approximately 115% of first quarter 2009 total net
charge-offs. The allowance for loan and lease losses increased to $36.4
million at March 31, 2009, from $29.7 million at March 31, 2008, and $35.9
million at December 31, 2008. The allowance for loan and lease losses as a
percent of period-end loans remained stable at March 31, 2009 at 1.33%.

First quarter 2009 net charge-offs included a $1.1 million charge-off of a
single commercial credit related to a borrower in the hotel industry.

The quarter's higher level of nonperforming loans adversely impacted the
company's nonperforming loan coverage ratios in the first quarter of 2009. The
allowance for loan and lease losses as a percent of nonaccrual and
nonperforming loans was 147.6% and 146.4%, respectively, compared with 199.5%
and 197.3%, respectively, in the fourth quarter of 2008, and 202.3% and
194.8%, respectively, in the first quarter of 2008. Although the first quarter
2009 allowance for loan and lease losses as a percent of nonaccrual and
nonperforming loans has decreased from prior periods, based on historical
information available, the company believes that it continues to compare
favorably with the industry and its peers on these ratios. The company expects
that the uncertain and challenging economic conditions are likely to continue
to impact borrowers in all lending categories throughout the remainder of
2009, and possibly into 2010. Assuming further decay in economic conditions
over the next several quarters, First Financial would expect that the level of
nonperforming assets would continue to increase.

Total loans 30 to 89 days past due at March 31, 2009 were $20.4 million, or
0.75% of period end loans, compared with $22.6 million, or 0.84% at December
31, 2008, and $20.3 million, or 0.78% at March 31, 2008. Management closely
monitors these trends and ratios and currently considers the level of
delinquent loans consistent with its expectation of the total loan portfolio's
behavior.

The allowance for loan and lease losses increased approximately $0.6 million
from the fourth quarter 2008 level. A higher level of reserves reflects the
company's expectations of a continuing decline in economic conditions and the
uncertainty surrounding the timing of an economic recovery. The allowance for
loan and lease losses as a percent of period-end loans is based on the
estimated potential losses inherent in the loan portfolio in today's economic
environment. The company believes that the $36.4 million allowance for loan
and lease losses at March 31, 2009 or 1.33% of period end loans is adequate to
absorb probable credit losses inherent in its lending portfolio.

Other real estate owned decreased $0.5 million to $3.5 million at March 31,
2009, from $4.0 million at December 31, 2008, and increased $1.1 million from
$2.4 million at March 31, 2008. The linked quarter decrease was a result of
net dispositions and valuation adjustments, and the year-over-year increase
was a result of net additions in residential real estate.

For further details on the quarter-over-quarter and year-to-date changes in
credit quality, please see the attached Credit Quality schedule.

CAPITAL MANAGEMENT
All regulatory capital ratios exceeded the amounts necessary to be classified
as "well-capitalized" at March 31, 2009. In addition, total regulatory capital
exceeded the "minimum" requirement by approximately $159.1 million, on a
consolidated basis. The following table presents the regulatory capital ratios
for First Financial Bancorp and its subsidiary, First Financial Bank, at March
31, 2009. The capital levels for First Financial Bank do not include the
additional capital that the company received from the U.S. Treasury in
December 2008, under its CPP.

Regulatory
First "well-capitalized"
Table IV FFBC Financial Bank minimum
-------- ---- --------------- --------------------
Leverage Ratio 9.51% 8.26% 5%
-------------- ---- ---- -
Tier 1 Capital Ratio 12.16% 10.58% 6%
-------------------- ----- ----- -
Total Risk-Based
Capital Ratio 13.39% 12.07% 10%
----------------- ----- ----- --
EOP Tangible Equity /
EOP Tangible Assets 8.60% N/A N/A
---------------------- ---- --- ---
EOP Tangible Common
Equity /
EOP Tangible Assets 6.54% N/A N/A
------------------- ---- --- ---

N/A = not applicable

Earlier this year, in an effort to build capital and further strengthen the
balance sheet, the company reduced its quarterly cash dividend from $0.17 per
common share to $0.10 per common share - a move that preserved approximately
$2.6 million in tangible equity in the first quarter of 2009. First Financial
remains committed to maintaining a strong capital base and will continue to
take the necessary steps to ensure that its capital position remains sound
throughout this period of uncertainty.

U.S. TREASURY CAPITAL PURCHASE PROGRAM
On December 23, 2008, First Financial completed the sale of $80.0 million in
perpetual preferred securities to the U.S. Treasury under the Capital Purchase
Program (CPP), a component of the Troubled Asset Relief Program (TARP). As a
participant in the program, First Financial is reporting the use of this
capital.

Use of Capital
First Financial has both short- and long-term plans for use of the CPP
proceeds. In anticipation of the receipt of the $80.0 million in capital, the
company began purchasing agency-guaranteed, mortgage-backed securities during
the fourth quarter 2008. This investment portfolio - specifically designated
as the CPP Investment Portfolio - totaled approximately $225.4 million at
March 31, 2009, compared with $121.9 million at December 31, 2008. The ratio
of investments to capital, or leverage on the CPP capital, was 2.8 times the
proceeds received at March 31, 2009, and at December 31, 2008, was 1.5 times
the proceeds received. During the first quarter 2009, the fixed-income market
experienced a significant increase in pricing for agency-guaranteed,
mortgage-backed securities. This was as a result of a Federal Reserve program
designed to support the purchase of mortgage-related assets as part of their
efforts to stimulate the mortgage financing sector. As a result, the company
added selectively to the CPP Investment Portfolio.

Earnings from the CPP Investment Portfolio have had, and the company expects
will continue to have, a positive effect on net interest income, and should
also exceed the quarterly dividends payable to the U.S. Treasury on their
investment in the preferred shares.

Funding
Upon receipt of the CPP funds in late December 2008, funding to support the
CPP Investment Portfolio was evaluated in order to take advantage of the low
interest rate environment. While several duration-matched funding alternatives
were analyzed during the first quarter, the portfolio is currently funded with
short-term borrowings to maximize the return on net interest income. This
strategy is employed in the context of the company's total interest-rate
risk-management process and is re-evaluated continually in the context of
expected market behavior.

Increased Lending Activities
Total loans at March 31, 2009, increased $53.3 million from December 31, 2008.
Commercial lending period-end balances were up $73.1 million, which more than
offset the decline in period-end balances in the consumer lending portfolios.
The decline in certain consumer lending balances is a result of the First
Financial's strategy to transition its lending emphasis from consumer-oriented
lending to commercial-oriented lending. However, during the first quarter of
2009, the company originated $47.9 million in residential mortgage loans
compared with $21.8 million in the fourth quarter of 2008, and $30.9 million
in the first quarter of 2008. As part of the company's originate-and-sell
business model, those loans are not included in the period-end consumer loan
balances. While First Financial has not emphasized the residential mortgage
lending part of its business over the past several years, the company does
plan to focus on expanding within this area in the future, including
maintaining its originate-and-sell strategy.

It is expected that as additional lending opportunities become available, the
cash flows from the CPP Investment Portfolio will provide sufficient liquidity
and capital support for redeployment into loans.

First Financial has evaluated several ways to increase lending volume
consistent with the intent of the CPP program and is working with its
third-party servicer for residential mortgage loans to evaluate appropriate
foreclosure modification solutions.

Preferred Stock Dividend
During the first quarter of 2009, First Financial paid a pro-rated dividend of
$0.6 million for the period ending February 15, 2009, to the U.S. Treasury on
their investment in the company's preferred shares. Future quarterly dividends
will be $1.0 million, reflecting a full calendar quarter.

NET INTEREST INCOME & NET INTEREST MARGIN

Table V ($ in thousands)
----------------
Quarter
-------

1Q-09 4Q-08 1Q-08
----- ----- -----
Net Interest Income $30,928 $30,129 $28,249
Net Interest Margin 3.61% 3.67% 3.78%
Net Interest Margin
(fully tax
equivalent) 3.65% 3.71% 3.85%

First quarter 2009 end-of-period and average total deposits increased from the
fourth quarter of 2008 as a result of growth in lower-cost transaction deposit
accounts, particularly commercial balances. The continued transition in the
deposit mix from higher-cost certificates of deposits to lower-cost
transaction-based accounts, combined with higher average earning asset
balances and a lower cost of short-term funding had a positive impact on the
net interest margin during the quarter, but was more than offset by the impact
of lower overall earning interest rates on loans.

First Financial's balance sheet, excluding the impact of the increased size of
its investment portfolio and the corresponding short-term funding, remains
asset sensitive.

First quarter 2009 net interest income increased $2.7 million from the first
quarter of 2008, and $0.8 million from the fourth quarter of 2008 due to
increases in both end-of-period and average total loans primarily driven by
higher commercial lending volume, and growth in the investment securities
portfolio.

For further details on the quarter-over-quarter and year-to-date changes in
the net interest margin, please see the attached Net Interest Margin Rate /
Volume Analysis

NONINTEREST INCOME

-- First quarter 2009 noninterest income was $12.0 million, compared with
$14.9 million in the first quarter of 2008, and $12.6 million in the
fourth quarter of 2008.

The following table presents a summary of items impacting noninterest income
for the first quarter of 2009 and the first and fourth quarters of 2008.

Table VI ($ in thousands)
----------------
Quarter
-------
1Q-09 4Q-08 1Q-08
----- ----- -----

Gain on Sale of Property & Casualty
Portion of Insurance Business $574 $- $-

Gain on Sales of Investment Securities
(VISA) - - 1,585
---- -- ------
Impact to Noninterest Income $574 $- $1,585
==== == ======

First quarter 2009 results included a $0.6 million gain, before associated
employee-related costs, from the sale of the property and casualty liability
portion of the company's insurance business. As previously disclosed, this
transaction closed on March 31, 2009.

First quarter 2009 noninterest income declined $2.8 million from the first
quarter of 2008 and $0.6 million from the fourth quarter of 2008. Excluding
the items mentioned above, first quarter 2009 noninterest income declined $1.8
million from the first quarter of 2008 and $1.2 million from the fourth
quarter of 2008. The year-over-year and linked-quarter declines were primarily
due to the impact of fewer days during the quarter, lower service charges on
deposit accounts, particularly lower overdraft/non-sufficient funds fees, and
decreases in bank card income and trust and wealth management fees. These fee
income categories were negatively impacted by current economic conditions and
their effect on consumer spending activity, as well as volatility in the
investment and equity markets. A decline in income from bank-owned life
insurance, which was impacted by volatility in the fixed-income markets, also
contributed to the linked-quarter and year-over-year declines in noninterest
income. The following table presents a breakout of overdraft/non-sufficient
funds fees and trust and wealth management fees for the first quarter of 2009
and the first and fourth quarters of 2008.

Table VII ($ in thousands)
----------------
Quarter
-------
1Q-09 4Q-08 1Q-08
----- ----- -----

Overdraft/Non-Sufficient Fund Fees $2,785 $3,445 $3,329
Other Deposit Fees 1,294 1,307 1,278
----- ----- ---
Total Service Charges on Deposit Accounts 4,079 4,752 4,607
----- ----- -----

Trust Fees 2,946 3,284 3,913
Investment Advisory Fees 343 461 709
--- --- ---
Total Trust & Wealth Management Fees 3,289 3,745 4,622
----- ----- -----

The decline in Total Trust and Wealth Management Fees is attributable to
decreases in both investment advisory and trust fees, which were primarily
driven by lower asset valuations from overall market declines. Since June 30,
2008, assets under management by the company's wealth management division have
declined by approximately $472.9 million or 23.4% to $1.6 billion at March 31,
2009, primarily as a result of equity market declines.

NONINTEREST EXPENSE

-- First quarter 2009 noninterest expense was $29.9 million, compared
with
$29.0 million in the first quarter of 2008, and $29.8 million in the
fourth quarter of 2008.

First quarter 2009 noninterest expense, which includes severance payments of
$0.2 million related to the previously mentioned sale of the property and
casualty liability portion of the company's insurance business, increased
slightly over both the first and fourth quarters of 2008. The linked-quarter
increase was primarily due to a $0.1 million increase in FDIC deposit
insurance premiums, as well as seasonal fluctuations related to payroll and
benefit plans, offset by lower marketing costs. The year-over-year increase
was a result of a $0.2 million increase in FDIC deposit insurance premiums,
combined with higher professional fees and medical and pension-related costs,
as well as increased marketing costs primarily related to deposit gathering
initiatives. The FDIC is currently evaluating further increases in deposit
insurance premiums for all participating institutions later in 2009, including
a possible special assessment in the second or third quarter of the year.

INCOME TAXES
Income tax expense was $3.0 million and the effective tax rate was 34.6% for
the first quarter of 2009, compared with income tax expense of $3.5 million
and an effective tax rate of 32.6% for the first quarter of 2008, and income
tax expense of $0.4 million and an effective tax rate of 15.1% for the fourth
quarter of 2008. The lower effective tax rate for the fourth quarter 2008 was
due to the marginal impact of lower pre-tax earnings.

LOANS
First Quarter 2009 versus First Quarter 2008
-- Average total loans increased $118.7 million or 4.6%.

-- Average commercial, commercial real estate, and construction loans
increased $274.4 million, or 16.6%.

First Quarter 2009 versus Fourth Quarter 2008
-- Average total loans increased $23.0 million, or 3.4% on an annualized
basis.

-- Average commercial, commercial real estate, and construction loans
increased $65.7 million, or 14.1% on an annualized basis.

First Financial experienced strong loan growth during the first quarter of
2009, primarily within its commercial lending portfolios. Overall declines in
certain period-end and average loans are a result of the company's strategy to
de-emphasize certain consumer-based lending activities.

INVESTMENTS
In early 2008, First Financial began increasing the size of its investment
portfolio. Since the end of the first quarter of 2008, the portfolio has grown
approximately $380.7 million on a net basis. Approximately $112.9 million of
securities were purchased during the first quarter of 2009. The portfolio
selection criteria avoids securities that are backed by sub-prime assets and
also those containing assets that would give rise to material geographic
concentrations. At March 31, 2009, the company held approximately 86.1% of its
available-for-sale securities in residential mortgage-related investments,
substantially all of which are held in highly-rated, agency-backed
pass-through instruments, including collateralized mortgage obligations
(CMOs). All CMOs held by the company are AAA rated by Standard & Poor's
Corporation or similar rating agencies. First Financial does not own any
interest-only, principal-only, or other high-risk securities.

Securities available-for-sale at March 31, 2009, totaled $732.9 million,
compared with $345.1 million at March 31, 2008, and $659.8 million at December
31, 2008. The total investment portfolio represented 20.1% and 11.7% of total
assets at March 31, 2009 and 2008, respectively, and 18.7% of total assets at
December 31, 2008.

The company has recorded, as a component of equity in accumulated other
comprehensive income, an unrealized after-tax gain on the investment portfolio
of approximately $10.6 million at March 31, 2009, compared with an unrealized
after-tax gain of $3.6 million at March 31, 2008, and an unrealized after-tax
gain of $6.9 million at December 31, 2008.

The following table presents a summary of the total investment portfolio at
March 31, 2009.

Table VIII
($ in thousands, excluding book price and
market value)

Base
% of Book Book Book 3/31/2009 Gain/
Total Value Yield Price Market Value (Loss)
-------- ----- ----- ----- ----- ------------ ------
Agency's 5.4% $41,534 5.31 99.78 103.66 $1,554
CMOs (Agency) 22.3% 170,397 4.62 100.87 103.00 3,526
CMOs (Private) 0.0% 85 2.04 100.00 98.04 (2)
MBSs (Agency) 63.8% 488,448 4.87 101.01 103.50 11,790
Agency
Preferred 0.0% 72 - 0.36 0.36 -
--- -- - ---- ---- -
Subtotal 91.5% $700,536 4.83 100.89 103.38 $16,868
-------- ---- -------- ---- ------ ------ -------

Municipal 4.4% $33,699 7.15 99.17 100.28 $376
Other * 4.1% 31,382 4.41 100.91 99.45 (461)
------- --- ------ ---- ------ ----- ----
Subtotal 8.5% $65,081 5.83 100.01 99.88 $(85)
-------- --- ------- ---- ------ ----- ----

Total
Investment
Portfolio 100.0% $765,617 4.92 100.82 103.08 $16,783
----------- ----- -------- ---- ------ ------ -------

Net Unrealized Gain/(Loss) $16,783
Aggregate Gains $17,836
Aggregate Losses $(1,053)

Net Unrealized Gain/(Loss) %
of Book Value 2.19%

* Other includes $28.0 million of regulatory stock

DEPOSITS
First Quarter 2009 compared with First Quarter 2008
-- Average total deposits declined $10.4 million, or 0.4%.
-- Average transaction and savings deposits increased $66.8 million, or
4.1%.

-- Average time deposits declined $77.1 million, or 6.3%.

First Quarter 2009 compared with Fourth Quarter 2008
-- Average total deposits increased $42.1 million, or 6.1% on an
annualized
basis.
-- Average transaction and savings deposits increased $51.5 million, or
12.6% on an annualized basis.

-- Average time deposits declined $9.4 million, or 3.2% on an annualized
basis.

The decline in average total deposits from the first quarter of 2008 is
attributable to a decrease in average total interest-bearing deposits
primarily due to the runoff of time deposits resulting from disciplined
pricing and the company's strategy to generate lower-cost transaction-based
accounts. The increase in average total deposits from the fourth quarter of
2008 is a result of recent deposit-pricing strategies and other initiatives
designed to grow and retain more transaction-based retail and commercial
deposits. Average commercial transaction deposits increased $36.6 million and
average commercial time deposits increased $6.0 million from the fourth
quarter of 2008. First Financial continues to employ prudent pricing
disciplines for all deposits.

Conference Call & Webcast
As previously announced, a conference call and webcast to discuss First
Financial's first quarter 2009 results will be held on Thursday, April 30,
2009, at 9:00 a.m. ET, with Claude E. Davis, president and chief executive
officer, and J. Franklin Hall, executive vice president and chief financial
officer. To access the conference call, dial 800-860-2442 (passcode not
required). The webcast will be available at the Investor Relations section of
First Financial's website (www.bankatfirst.com/Investor). Participants should
join the live conference call and webcast 5 to 10 minutes before its scheduled
start. A replay of the call and webcast will be available approximately one
hour after the live call has ended. To access the replay, dial 877-344-7529
(passcode 429741).

Forward-Looking Statements
This news release should be read in conjunction with the consolidated
financial statements, notes and tables in First Financial Bancorp's most
recent Annual Report on Form 10-K for the year ended December 31, 2008.
Management's analysis contains forward-looking statements that are provided to
assist in the understanding of anticipated future financial performance.
However, such performance involves risk 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 First Financial conducts
operations may be different from expected, resulting in, among other things, a
deterioration in credit quality or a reduced demand for credit, including the
resultant effect on First Financial's loan portfolio and allowance for loan
and lease losses; 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 First Financial, its 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 participation in the Temporary Liquidity Guarantee Program or from
increased payments from FDIC insurance funds as a result of depository
institution failures; the effects of and changes in policies and laws of
regulatory agencies, inflation, and interest rates; technology changes;
mergers and acquisitions; the effect of changes in accounting policies and
practices; adverse changes in the securities and debt markets; First
Financial's 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; the cost and effects of
litigation and of unexpected or adverse outcomes in such litigation;
uncertainties arising from First Financial's participation in the TARP,
including impacts on employee recruitment and retention and other business
practices, and uncertainties concerning the potential redemption of the U.S.
Treasury's preferred stock investment under the program, including the timing
of, regulatory approvals for, and conditions placed upon, any such redemption;
and First Financial's success at managing the risks involved in the foregoing.
For further discussion of certain factors that may cause such forward-looking
statements to differ materially from actual results, refer to the 2008 Form
10-K and other public documents filed with the Securities and Exchange
Commission (SEC). These documents are available at no cost within the investor
relations section of First Financial's website at
www.bankatfirst.com/investors and on the SEC's website at www.sec.gov.
Additional information will also be set forth in our quarterly report on Form
10-Q for the quarter ended March 31, 2009, which will be filed with the SEC no
later than May 11, 2009.

About First Financial Bancorp
First Financial Bancorp is a Cincinnati, Ohio based bank holding company with
$3.8 billion in assets. Its banking subsidiary, First Financial Bank, N.A.,
founded in 1863, provides retail and commercial banking products and services,
and investment and insurance products through its 82 retail banking locations
in Ohio, Kentucky and Indiana. The bank's wealth management division, First
Financial Wealth Resource Group, provides investment management, traditional
trust, brokerage, private banking, and insurance services, and has
approximately $1.6 billion in assets under management. Additional information
about the company, including its products, services, and banking locations, is
available at www.bankatfirst.com/investors.

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share)
(Unaudited)

Three months ended
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2009 2008 2008 2008 2008
---- ---- ---- ---- ----

RESULTS OF OPERATIONS
Net interest
income $30,928 $30,129 $29,410 $28,414 $28,249
Net income $5,735 $2,084 $5,732 $7,808 $7,338
Net income
available
to common
shareholders $5,157 $2,084 $5,732 $7,808 $7,338
Net earnings
per common
share - basic $0.14 $0.06 $0.15 $0.21 $0.20
Net earnings
per common
share - diluted $0.14 $0.06 $0.15 $0.21 $0.20
Dividends declared
per common share $0.10 $0.17 $0.17 $0.17 $0.17

KEY FINANCIAL RATIOS
Return on average
assets 0.62% 0.23% 0.66% 0.93% 0.89%
Return on average
shareholders'
equity 6.63% 2.89% 8.24% 11.26% 10.66%
Return on average
common shareholders'
equity 7.67% 2.97% 8.24% 11.26% 10.66%
Return on average
tangible common
shareholders'
equity 8.57% 3.32% 9.21% 12.57% 11.91%

Net interest margin 3.61% 3.67% 3.68% 3.72% 3.78%
Net interest margin
(fully tax
equivalent) (1) 3.65% 3.71% 3.73% 3.78% 3.85%

Ending equity as
a percent of
ending assets 9.29% 9.42% 7.89% 7.96% 8.36%
Ending common
equity as a
percent of
ending assets 7.24% 7.31% 7.89% 7.96% 8.36%
Ending tangible
common equity as
a percent of:
Ending tangible
assets 6.54% 6.52% 7.13% 7.18% 7.55%
Risk-weighted
Assets 8.38% 8.32% 8.86% 8.97% 9.31%

Average equity as
a percent of
average assets 9.29% 8.04% 7.96% 8.29% 8.39%
Average common
equity as a
percent of average
assets 7.22% 7.82% 7.96% 8.29% 8.39%
Average tangible
common equity as
a percent of
average tangible
assets 6.51% 7.05% 7.18% 7.50% 7.58%

Book value per
common share $7.36 $7.16 $7.40 $7.34 $7.41
Tangible book
value per
common share $6.59 $6.38 $6.62 $6.57 $6.64

Tier 1
Ratio (2) 12.16% 12.38% 9.80% 9.99% 10.20%
Total Capital
Ratio (2) 13.39% 13.62% 10.89% 11.06% 11.31%
Leverage
Ratio (2) 9.51% 10.00% 7.95% 8.21% 8.32%

AVERAGE BALANCE
SHEET ITEMS
Loans (3) $2,717,097 $2,690,895 $2,709,629 $2,648,327 $2,596,483
Investment
securities 758,257 574,893 467,524 422,463 343,553
Other earning
assets 0 1,737 3,137 4,095 65,799
- ----- ----- ----- ------
Total earning
assets $3,475,354 $3,267,525 $3,180,290 $3,074,885 $3,005,835
Total assets $3,777,510 $3,566,051 $3,476,648 $3,361,649 $3,298,663
Noninterest-
bearing
deposits $416,206 $412,644 $402,604 $394,352 $379,240
Interest-
bearing
deposits 2,405,700 2,367,121 2,380,037 2,400,940 2,453,028
--------- --------- --------- --------- ---------
Total
deposits $2,821,906 $2,779,765 $2,782,641 $2,795,292 $2,832,268
Borrowings $566,808 $474,655 $394,708 $256,409 $157,899
Shareholders'
equity $350,857 $286,582 $276,594 $278,803 $276,815

CREDIT QUALITY RATIOS
Allowance to
ending loans 1.33% 1.34% 1.14% 1.11% 1.14%
Allowance to
nonaccrual
loans 147.57% 199.51% 219.47% 199.70% 202.29%
Allowance to
nonperforming
loans 146.38% 197.27% 216.22% 192.50% 194.83%
Nonperforming
loans to total
loans 0.91% 0.68% 0.53% 0.57% 0.58%
Nonperforming
assets to
ending loans,
plus OREO 1.04% 0.83% 0.70% 0.71% 0.67%
Nonperforming
assets to total
assets 0.75% 0.60% 0.53% 0.55% 0.53%
Net charge-offs
to average loans
(annualized) 0.55% 0.73% 0.36% 0.40% 0.40%

(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) March 31, 2009 regulatory capital ratios are preliminary.
(3) Includes loans held for sale.

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands)
(Unaudited)

2009 2008
---- ---------------------------------
First Fourth Third Second
Quarter Quarter Quarter Quarter
------- ------- ------- -------
Interest income
Loans, including fees $33,657 $37,864 $39,754 $39,646
Investment securities
Taxable 8,690 6,697 5,349 4,387
Tax-exempt 434 519 631 792
--- --- --- ---
Total investment
securities interest 9,124 7,216 5,980 5,179
Federal funds sold 0 6 22 40
- - -- --
Total interest income 42,781 45,086 45,756 44,865

Interest expense
Deposits 9,803 12,015 13,608 14,635
Short-term borrowings 507 1,186 1,720 1,130
Long-term borrowings 1,306 1,395 707 384
Subordinated debentures
and capital securities 237 361 311 302
--- --- --- ---
Total interest expense 11,853 14,957 16,346 16,451
------ ------ ------ ------
Net interest income 30,928 30,129 29,410 28,414
Provision for loan and
lease losses 4,259 10,475 3,219 2,493
----- ------ ----- -----
Net interest income after
provision for loan and
lease losses 26,669 19,654 26,191 25,921

Noninterest income
Service charges on deposit
accounts 4,079 4,752 5,348 4,951
Trust and wealth
management fees 3,289 3,745 4,390 4,654
Bankcard income 1,291 1,457 1,405 1,493
Net gains from sales of
loans 384 321 376 188
Gains on sales of
investment securities 0 0 0 0
Income (loss) on preferred
securities 11 (137) (3,400) (221)
Other 2,979 2,510 2,359 2,683
----- ----- ----- -----
Total noninterest
income 12,033 12,648 10,478 13,748

Noninterest expenses
Salaries and employee
benefits 17,653 17,015 16,879 15,895
Net occupancy 2,817 2,635 2,538 2,510
Furniture and equipment 1,802 1,748 1,690 1,617
Data processing 818 840 791 814
Marketing 640 935 622 474
Communication 671 704 601 749
Professional services 953 912 729 1,061
State intangible tax 668 435 697 688
Other 3,912 4,623 3,793 4,161
----- ----- ----- -----
Total noninterest
expenses 29,934 29,847 28,340 27,969
------ ------ ------ ------
Income before income taxes 8,768 2,455 8,329 11,700
Income tax expense 3,033 371 2,597 3,892
----- --- ----- -----
Net income 5,735 2,084 5,732 7,808
Dividends on preferred stock 578 0 0 0
--- - - -
Net income available
to common
shareholders $5,157 $2,084 $5,732 $7,808
====== ====== ====== ======

ADDITIONAL DATA
Net earnings per common
share -basic $0.14 $0.06 $0.15 $0.21
Net earnings per common
share -diluted $0.14 $0.06 $0.15 $0.21
Dividends declared per
common share $0.10 $0.17 $0.17 $0.17

Return on average assets 0.62% 0.23% 0.66% 0.93%
Return on average
shareholders' equity 6.63% 2.89% 8.24% 11.26%

Interest income $42,781 $45,086 $45,756 $44,865
Tax equivalent adjustment 363 360 424 510
--- --- --- ---
Interest income - tax
equivalent 43,144 45,446 46,180 45,375
Interest expense 11,853 14,957 16,346 16,451
------ ------ ------ ------
Net interest income - tax
equivalent $31,291 $30,489 $29,834 $28,924
======= ======= ======= =======

Net interest margin 3.61% 3.67% 3.68% 3.72%
Net interest margin (fully
tax equivalent) (1) 3.65% 3.71% 3.73% 3.78%

Full-time equivalent
employees 1,063 1,061 1,052 1,058

2008
------------------ % Change
First Full % Change Comparable
Quarter Year Linked Qtr. Qtr.
------- ------ ----------- ----------
Interest income
Loans, including fees $42,721 $159,985 (11.1%) (21.2%)
Investment securities
Taxable 3,521 19,954 29.8% 146.8%
Tax-exempt 791 2,733 (16.4%) (45.1%)
--- ----- ----- -----
Total investment
securities interest 4,312 22,687 26.4% 111.6%
Federal funds sold 565 633 (100.0%) (100.0%)
--- --- ------ ------
Total interest income 47,598 183,305 (5.1%) (10.1%)

Interest expense
Deposits 17,739 57,997 (18.4%) (44.7%)
Short-term borrowings 792 4,828 (57.3%) (36.0%)
Long-term borrowings 406 2,892 (6.4%) 221.7%
Subordinated debentures
and capital securities 412 1,386 (34.3%) (42.5%)
--- ----- ----- -----
Total interest expense 19,349 67,103 (20.8%) (38.7%)
------ ------ ----- -----
Net interest income 28,249 116,202 2.7% 9.5%
Provision for loan and
lease losses 3,223 19,410 (59.3%) 32.1%
----- ------ ----- ----
Net interest income after
provision for loan and
lease losses 25,026 96,792 35.7% 6.6%

Noninterest income
Service charges on deposit
accounts 4,607 19,658 (14.2%) (11.5%)
Trust and wealth management
fees 4,622 17,411 (12.2%) (28.8%)
Bankcard income 1,298 5,653 (11.4%) (0.5%)
Net gains from sales of loans 219 1,104 19.6% 75.3%
Gains on sales of investment
securities 1,585 1,585 N/M (100.0%)
Income (loss) on preferred
securities 20 (3,738) (108.0%) (45.0%)
Other 2,524 10,076 18.7% 18.0%
----- ------ ---- ----
Total noninterest
income 14,875 51,749 (4.9%) (19.1%)

Noninterest expenses
Salaries and employee
benefits 17,073 66,862 3.7% 3.4%
Net occupancy 2,952 10,635 6.9% (4.6%)
Furniture and equipment 1,653 6,708 3.1% 9.0%
Data processing 793 3,238 (2.6%) 3.2%
Marketing 517 2,548 (31.6%) 23.8%
Communication 805 2,859 (4.7%) (16.6%)
Professional services 761 3,463 4.5% 25.2%
State intangible tax 686 2,506 53.6% (2.6%)
Other 3,780 16,357 (15.4%) 3.5%
----- ------ ----- ---
Total noninterest
expenses 29,020 115,176 0.3% 3.1%
------ ------- --- ---
Income before income taxes 10,881 33,365 257.1% (19.4%)
Income tax expense 3,543 10,403 717.5% (14.4%)
----- ------ ----- -----
Net income 7,338 22,962 175.2% (21.8%)
Dividends on preferred stock 0 0 N/M N/M
- -- --- ---
Net income available to
common shareholders $7,338 $22,962 147.5% (29.7%)
====== ======= ===== =====

ADDITIONAL DATA
Net earnings per common
share - basic $0.20 $0.62
Net earnings per common
share - diluted $0.20 $0.61
Dividends declared per
common share $0.17 $0.68

Return on average assets 0.89% 0.67%
Return on average
shareholders' equity 10.66% 8.21%

Interest income $47,598 $183,305 (5.1%) (10.1%)
Tax equivalent adjustment 514 1,808 0.8% (29.4%)
--- ----- --- -----
Interest income - tax
equivalent 48,112 185,113 (5.1%) (10.3%)
Interest expense 19,349 67,103 (20.8%) (38.7%)
------ ------ ----- -----
Net interest income - tax
equivalent $28,763 $118,010 2.6% 8.8%
======= ======== === ===

Net interest margin 3.78% 3.71%
Net interest margin (fully
tax equivalent) (1) 3.85% 3.77%

Full-time equivalent
employees 1,056 1,061

(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.

N/M = Not meaningful.

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)
(Unaudited)

Mar. 31, Dec. 31, Sep. 30,
2009 2008 2008
---- ---- ----
ASSETS
Cash and due from banks $79,563 $100,935 $90,341
Federal funds sold 0 0 0
Investment securities trading 72 61 198
Investment securities available-
for-sale 732,868 659,756 492,554
Investment securities held-to-
maturity 4,701 4,966 5,037
Other investments 27,976 27,976 34,976
Loans held for sale 6,342 3,854 2,437
Loans
Commercial 850,111 807,720 819,430
Real estate - construction 251,115 232,989 203,809
Real estate - commercial 859,303 846,673 814,578
Real estate - residential 360,013 383,599 424,902
Installment 91,767 98,581 106,456
Home equity 298,000 286,110 276,943
Credit card 26,191 27,538 27,047
Lease financing 45 50 92
-- -- --
Total loans 2,736,545 2,683,260 2,673,257
Less
Allowance for loan and
lease losses 36,437 35,873 30,353
------ ------ ------
Net loans 2,700,108 2,647,387 2,642,904
Premises and equipment 85,385 84,105 81,989
Goodwill 28,261 28,261 28,261
Other intangibles 500 1,002 872
Accrued interest and other
assets 143,420 140,839 132,107
------- ------- -------
Total Assets $3,809,196 $3,699,142 $3,511,676
========== ========== ==========

LIABILITIES
Deposits
Interest-bearing $622,263 $636,945 $580,417
Savings 705,229 583,081 608,438
Time 1,137,398 1,150,208 1,118,511
--------- --------- ---------
Total interest-bearing
deposits 2,464,890 2,370,234 2,307,366
Noninterest-bearing 427,068 413,283 404,315
------- ------- -------
Total deposits 2,891,958 2,783,517 2,711,681
Short-term borrowings
Federal funds purchased and
securities sold under
agreements to repurchase 162,549 147,533 45,495
Federal Home Loan Bank 160,000 150,000 215,000
Other 40,000 57,000 53,000
------ ------ ------
Total short-term borrowings 362,549 354,533 313,495
Long-term debt 136,832 148,164 152,568
Other long-term debt 20,620 20,620 20,620
Accrued interest and other
liabilities 43,477 43,981 36,092
------ ------ ------
Total Liabilities 3,455,436 3,350,815 3,234,456

SHAREHOLDERS' EQUITY
Preferred stock 78,075 78,019 0
Common stock 394,887 394,169 391,249
Retained earnings 77,695 76,339 80,632
Accumulated other comprehensive
loss (8,564) (11,905) (6,285)
Treasury stock, at cost (188,333) (188,295) (188,376)
-------- -------- --------
Total Shareholders' Equity 353,760 348,327 277,220
------- ------- -------
Total Liabilities and
Shareholders' Equity $3,809,196 $3,699,142 $3,511,676
========== ========== ==========

% Change % Change
Jun. 30, Mar. 31, Linked Comparable
2008 2008 Qtr. Qtr.
---- ---- ------ ----------
ASSETS
Cash and due from banks $106,248 $102,246 (21.2%) (22.2%)
Federal funds sold 4,005 2,943 N/M (100.0%)
Investment securities
trading 3,598 3,820 18.0% (98.1%)
Investment securities
available-for-sale 421,697 345,145 11.1% 112.3%
Investment securities
held-to-maturity 5,316 5,414 (5.3%) (13.2%)
Other investments 34,632 34,293 0.0% (18.4%)
Loans held for sale 2,228 4,108 64.6% 54.4%
Loans
Commercial 814,779 789,922 5.2% 7.6%
Real estate -
construction 186,178 172,737 7.8% 45.4%
Real estate -
commercial 769,555 726,397 1.5% 18.3%
Real estate -
residential 499,002 519,790 (6.1%) (30.7%)
Installment 115,575 126,623 (6.9%) (27.5%)
Home equity 263,063 254,200 4.2% 17.2%
Credit card 26,399 25,528 (4.9%) 2.6%
Lease financing 111 258 (10.0%) (82.6%)
--- --- ----- -----
Total loans 2,674,662 2,615,455 2.0% 4.6%
Less
Allowance for loan
and lease losses 29,580 29,718 1.6% 22.6%
------ ------ --- ----
Net loans 2,645,082 2,585,737 2.0% 4.4%
Premises and equipment 79,380 78,585 1.5% 8.7%
Goodwill 28,261 28,261 0.0% 0.0%
Other intangibles 641 659 (50.1%) (24.1%)
Accrued interest and
other assets 128,874 132,054 1.8% 8.6%
------- ------- --- ---
Total Assets $3,459,962 $3,323,265 3.0% 14.6%
========== ========== === ====

LIABILITIES
Deposits
Interest-bearing $575,236 $610,154 (2.3%) 2.0%
Savings 615,613 617,059 20.9% 14.3%
Time 1,167,024 1,206,750 (1.1%) (5.7%)
--------- --------- ---- ----
Total interest-
bearing deposits 2,357,873 2,433,963 4.0% 1.3%
Noninterest-bearing 419,045 405,015 3.3% 5.4%
------- ------- --- ---
Total deposits 2,776,918 2,838,978 3.9% 1.9%
Short-term borrowings
Federal funds
purchased and
securities sold
under agreements to
repurchase 25,932 27,320 10.2% 495.0%
Federal Home Loan Bank 237,900 6,500 6.7% 2361.5%
Other 54,000 53,000 (29.8%) (24.5%)
------ ------ ----- -----
Total short-term
borrowings 317,832 86,820 2.3% 317.6%
Long-term debt 41,263 42,380 (7.6%) 222.9%
Other long-term debt 20,620 20,620 0.0% 0.0%
Accrued interest and
other liabilities 28,039 56,698 (1.1%) (23.3%)
------ ------ ---- -----
Total Liabilities 3,184,672 3,045,496 3.1% 13.5%

SHAREHOLDERS' EQUITY
Preferred stock 0 0 0.1% N/M
Common stock 390,545 389,986 0.2% 1.3%
Retained earnings 81,263 79,818 1.8% (2.7%)
Accumulated other
comprehensive loss (8,236) (3,800) 28.1% (125.4%)
Treasury stock,
at cost (188,282) (188,235) 0.0% (0.1%)
-------- -------- --- ----
Total Shareholders'
Equity 275,290 277,769 1.6% 27.4%
------- ------- --- ----
Total Liabilities
and Shareholders'
Equity $3,459,962 $3,323,265 3.0% 14.6%
========== ========== === ====

N/M = Not meaningful.

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)
(Unaudited)

Quarterly Averages
Mar. 31, Dec. 31, Sep. 30,
2009 2008 2008
---- ---- ----
ASSETS
Cash and due from banks $85,650 $87,307 $89,498
Federal funds sold 0 1,737 3,137
Investment securities 758,257 574,893 467,524
Loans held for sale 5,085 1,876 2,080
Loans
Commercial 825,399 809,869 819,199
Real estate -
construction 242,750 220,839 192,731
Real estate -
commercial 858,403 830,121 797,143
Real estate -
residential 372,853 417,499 490,089
Installment 94,881 102,814 110,933
Home equity 291,038 280,900 270,659
Credit card 26,641 26,902 26,692
Lease financing 47 75 103
-- -- ---
Total loans 2,712,012 2,689,019 2,707,549
Less
Allowance for loan
and lease losses 37,189 29,710 29,739
------ ------ ------
Net loans 2,674,823 2,659,309 2,677,810
Premises and equipment 84,932 83,307 81,000
Goodwill 28,261 28,261 28,261
Other intangibles 595 613 639
Accrued interest and
other assets 139,907 128,748 126,699
------- ------- -------
Total Assets $3,777,510 $3,566,051 $3,476,648
========== ========== ==========

LIABILITIES
Deposits
Interest-bearing $642,934 $611,129 $609,992
Savings 620,509 604,370 611,713
Time 1,142,257 1,151,622 1,158,332
--------- --------- ---------
Total interest-
bearing deposits 2,405,700 2,367,121 2,380,037
Noninterest-bearing 416,206 412,644 402,604
------- ------- -------
Total deposits 2,821,906 2,779,765 2,782,641
Short-term borrowings
Federal funds
purchased and
securities sold
under agreements to
repurchase 127,652 98,690 36,476
Federal Home Loan Bank 218,100 150,867 206,741
Other 56,078 53,044 53,836
------ ------ ------
Total short-term
borrowings 401,830 302,601 297,053
Long-term debt 144,358 151,434 77,035
Other long-term debt 20,620 20,620 20,620
------ ------ ------
Total borrowed funds 566,808 474,655 394,708
Accrued interest and
other liabilities 37,939 25,049 22,705
------ ------ ------
Total Liabilities 3,426,653 3,279,469 3,200,054

SHAREHOLDERS' EQUITY
Preferred stock 78,038 7,805 0
Common stock 394,500 391,601 390,861
Retained earnings 77,317 81,932 82,636
Accumulated other
comprehensive loss (10,677) (6,462) (8,594)
Treasury stock, at cost (188,321) (188,294) (188,309)
-------- -------- --------
Total Shareholders'
Equity 350,857 286,582 276,594
------- ------- -------
Total Liabilities and
Shareholders' Equity $3,777,510 $3,566,051 $3,476,648
========== ========== ==========

Quarterly Averages
Jun. 30, Mar. 31,
2008 2008
---- ----
ASSETS
Cash and due from banks $81,329 $86,879
Federal funds sold 4,095 65,799
Investment securities 422,463 345,303
Loans held for sale 3,034 3,122
Loans
Commercial 805,122 781,358
Real estate - construction 179,078 162,008
Real estate - commercial 747,077 708,779
Real estate - residential 508,837 530,567
Installment 121,000 132,876
Home equity 257,954 251,706
Credit card 26,043 25,745
Lease financing 182 322
--- ---
Total loans 2,645,293 2,593,361
Less Allowance for loan
and lease losses 29,248 28,860
------ ------
Net loans 2,616,045 2,564,501
Premises and equipment 78,933 78,969
Goodwill 28,261 28,261
Other intangibles 652 680
Accrued interest and
other assets 126,837 125,149
------- -------
Total Assets $3,361,649 $3,298,663
========== ==========

LIABILITIES
Deposits
Interest-bearing $590,464 $623,206
Savings 617,029 610,449
Time 1,193,447 1,219,373
--------- ---------
Total interest-
bearing deposits 2,400,940 2,453,028
Noninterest-bearing 394,352 379,240
------- -------
Total deposits 2,795,292 2,832,268
Short-term borrowings
Federal funds purchased
and securities sold
under agreements to
repurchase 25,771 26,261
Federal Home Loan Bank 114,654 614
Other 53,758 66,154
------ ------
Total short-term
borrowings 194,183 93,029
Long-term debt 41,606 44,250
Other long-term debt 20,620 20,620
------ ------
Total borrowed funds 256,409 157,899
Accrued interest and
other liabilities 31,145 31,681
------ ------
Total Liabilities 3,082,846 3,021,848

SHAREHOLDERS' EQUITY
Preferred stock 0 0
Common stock 390,237 391,079
Retained earnings 81,045 79,951
Accumulated other
comprehensive loss (4,211) (4,977)
Treasury stock, at cost (188,268) (189,238)
-------- --------
Total Shareholders' Equity 278,803 276,815
------- -------
Total Liabilities and
Shareholders' Equity $3,361,649 $3,298,663
========== ==========

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE / VOLUME ANALYSIS (1)

(Dollars in thousands)
(Unaudited)

Quarterly Averages
----------------------------------------------------
Mar. 31, Dec. 31, Mar. 31,
2009 2008 2008
Balance Yield Balance Yield Balance Yield
------- ----- ------- ----- ------- -----
Earning assets
Investment
securities $758,257 4.88% $574,893 4.99% $343,553 5.05%
Federal funds
sold - 0.00% 1,737 1.37% 65,799 3.45%
Gross
loans (2) 2,717,097 5.02% 2,690,895 5.60% 2,596,483 6.62%
--------- ---- --------- ---- --------- ----
Total
earning
assets 3,475,354 4.99% 3,267,525 5.49% 3,005,835 6.37%

Nonearning assets
Allowance for
loan and lease
losses (37,189) (29,710) (28,860)
Cash and due
from banks 85,650 87,307 86,879
Accrued
interest and
other assets 253,695 240,929 234,809
------- ------- -------
Total
assets $3,777,510 $3,566,051 $3,298,663
========== ========== ==========

Interest-bearing
liabilities
Total interest-
bearing
deposits $2,405,700 1.65% $2,367,121 2.02% $2,453,028 2.91%
Borrowed funds
Short-term
borrowings 401,830 0.51% 302,601 1.56% 93,029 3.42%
Long-term
debt 144,358 3.67% 151,434 3.66% 44,250 3.69%
Other long-
term debt 20,620 4.66% 20,620 6.96% 20,620 8.04%
------ ---- ------ ---- ------ ----
Total
borrowed
funds 566,808 1.47% 474,655 2.47% 157,899 4.10%
------- ---- ------- ---- ------- ----
Total
interest-
bearing
liabil-
ities 2,972,508 1.62% 2,841,776 2.09% 2,610,927 2.98%

Noninterest-
bearing
liabilities
Noninterest-
bearing
demand
deposits 416,206 412,644 379,240
Other
liabilities 37,939 25,049 31,681
Shareholders'
equity 350,857 286,582 276,815
------- ------- -------
Total
liabilities &
shareholders'
equity $3,777,510 $3,566,051 $3,298,663
========== ========== ==========

Net interest
income (1) $30,928 $30,129 $28,249
======= ======= =======
Net interest
spread (1) 3.37% 3.40% 3.39%
==== ==== ====
Net interest
margin (1) 3.61% 3.67% 3.78%
==== ==== ====

Linked Qtr. Comparable
Income Qtr. Income
Variance Variance
------------- ------------
Rate Volume Total Rate Volume Total
---- ------ ----- ---- ------ -----
Earning assets
Investment
securities $(222) $2,130 $1,908 $(157) $4,969 $4,812
Federal funds
sold (6) - (6) (565) - (565)
Gross loans (2) (4,165) (42) (4,207) (10,558) 1,494 (9,064)
------ --- ------ ------- ----- ------
Total earning
assets (4,393) 2,088 (2,305) (11,280) 6,463 (4,817)

Nonearning assets
Allowance for loan
and lease losses
Cash and due from
banks
Accrued interest
and other assets
Total assets

Interest-bearing
liabilities
Total interest-
bearing
deposits $(2,263) $51 $(2,212) $(7,743) $(193) $(7,936)
Borrowed funds
Short-term
borrowings (800) 121 (679) (675) 390 (285)
Long-term debt (10) (79) (89) (6) 906 900
Other long-
term debt (121) (3) (124) (175) - (175)
---- -- ---- ---- --- ----
Total
borrowed
funds (931) 39 (892) (856) 1,296 440
---- -- ---- ---- ----- ---
Total interest-
bearing
liabilities (3,194) 90 (3,104) (8,599) 1,103 (7,496)

Noninterest-bearing
liabilities
Noninterest-bearing
demand deposits
Other liabilities
Shareholders' equity
Total liabilities &
shareholders' equity

Net interest
income (1) $(1,199) $1,998 $799 $(2,681) $5,360 $2,679
======= ====== ==== ======= ====== ======
Net interest
spread (1)
Net interest
margin (1)

(1) Not tax equivalent.
(2) Loans held for sale and nonaccrual loans are both included in gross
loans.

FIRST FINANCIAL BANCORP.
CREDIT QUALITY

(Dollars in thousands)
(Unaudited)

Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2009 2008 2008 2008 2008
---- ---- ---- ---- ----

ALLOWANCE FOR LOAN AND
LEASE LOSS ACTIVITY
Balance at beginning of
period $35,873 $30,353 $29,580 $29,718 $29,057
Provision for loan and
lease losses 4,259 10,475 3,219 2,493 3,223
Gross charge-offs
Commercial 2,521 2,168 1,568 946 545
Real estate -
construction 0 0 0 0 0
Real estate -
commercial 382 2,083 48 589 806
Real estate -
residential 231 47 335 227 39
Installment 400 493 424 482 564
Home equity 218 238 135 525 651
All other 308 374 426 426 498
--- --- --- --- ---
Total gross charge-
offs 4,060 5,403 2,936 3,195 3,103
Recoveries
Commercial 60 165 179 166 144
Real estate -
construction 0 0 0 0 0
Real estate -
commercial 16 40 37 19 3
Real estate -
residential 2 5 4 5 11
Installment 254 189 225 246 315
Home equity 0 0 0 30 0
All other 33 49 45 98 68
-- -- -- -- --
Total recoveries 365 448 490 564 541
--- --- --- --- ---
Total net charge-offs 3,695 4,955 2,446 2,631 2,562
----- ----- ----- ----- -----
Ending allowance for
loan and lease losses $36,437 $35,873 $30,353 $29,580 $29,718
======= ======= ======= ======= =======

NET CHARGE-OFFS TO AVERAGE
LOANS AND LEASES (ANNUALIZED)
Commercial 1.21% 0.98% 0.67% 0.39% 0.21%
Real estate -
construction 0.00% 0.00% 0.00% 0.00% 0.00%
Real estate -
commercial 0.17% 0.98% 0.01% 0.31% 0.46%
Real estate -
residential 0.25% 0.04% 0.27% 0.18% 0.02%
Installment 0.62% 1.18% 0.71% 0.78% 0.75%
Home equity 0.30% 0.34% 0.20% 0.77% 1.04%
All other 4.18% 4.79% 5.66% 5.03% 6.63%
---- ---- ---- ---- ----
Total net charge-offs 0.55% 0.73% 0.36% 0.40% 0.40%
==== ==== ==== ==== ====

COMPONENTS OF NONPERFORMING
LOANS, NONPERFORMING
ASSETS, AND UNDERPERFORMING
ASSETS
Nonaccrual loans
Commercial $8,652 $6,170 $5,194 $5,447 $3,952
Real estate -
commercial 9,170 4,779 3,361 3,592 4,415
Real estate -
residential 4,724 5,363 3,742 4,461 4,529
Installment 464 459 417 438 544
Home equity 1,681 1,204 1,084 866 1,221
All other 0 6 32 8 30
- - -- - --
Total nonaccrual
loans 24,691 17,981 13,830 14,812 14,691
Restructured loans 201 204 208 554 562
--- --- --- --- ---
Total nonperforming
loans 24,892 18,185 14,038 15,366 15,253
Other real estate owned
(OREO) 3,513 4,028 4,610 3,763 2,368
----- ----- ----- ----- -----
Total nonperforming
assets 28,405 22,213 18,648 19,129 17,621
Accruing loans past due
90 days or more 255 138 241 245 372
--- --- --- --- ---
Total underperforming
assets $28,660 $22,351 $18,889 $19,374 $17,993
======= ======= ======= ======= =======
Total classified assets $79,256 $67,393 $58,284 $54,511 $55,302
======= ======= ======= ======= =======

CREDIT QUALITY RATIOS
Allowance for loan and
lease losses to
Nonaccrual loans 147.57% 199.51% 219.47% 199.70% 202.29%
Nonperforming loans 146.38% 197.27% 216.22% 192.50% 194.83%
Total ending loans 1.33% 1.34% 1.14% 1.11% 1.14%
Nonperforming loans to
total loans 0.91% 0.68% 0.53% 0.57% 0.58%
Nonperforming assets to
Ending loans, plus OREO 1.04% 0.83% 0.70% 0.71% 0.67%
Total assets 0.75% 0.60% 0.53% 0.55% 0.53%

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY

(Dollars in thousands)
(Unaudited)

Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2009 2008 2008 2008 2008
---- ---- ---- ---- ----
PER COMMON SHARE
Market Price
High $12.10 $14.30 $14.80 $13.88 $13.81
Low $5.58 $10.81 $8.10 $9.20 $10.19
Close $9.53 $12.39 $14.60 $9.20 $13.45

Average
common shares
outstanding -
basic 37,142,531 37,133,725 37,132,864 37,114,451 37,066,754
Average
common shares
outstanding -
diluted 37,840,954 37,567,032 37,504,231 37,524,789 37,431,918
Ending common
shares
outstanding 37,474,422 37,481,201 37,476,607 37,483,384 37,488,229

REGULATORY
CAPITAL Preliminary
Tier 1 Capital $358,834 $356,307 $274,513 $274,372 $272,614
Tier 1 Ratio 12.16% 12.38% 9.80% 9.99% 10.20%
Total Capital $395,271 $392,180 $304,866 $303,952 $302,332
Total Capital
Ratio 13.39% 13.62% 10.89% 11.06% 11.31%
Total Capital
in excess of
minimum
requirement $159,133 $161,896 $80,806 $84,147 $88,553
Total Risk-
Weighted
Assets $2,951,721 $2,878,548 $2,800,753 $2,747,559 $2,672,242
Leverage Ratio 9.51% 10.00% 7.95% 8.21% 8.32%

OTHER CAPITAL RATIOS
Ending
shareholders'
equity to
ending assets 9.29% 9.42% 7.89% 7.96% 8.36%
Ending common
shareholders'
equity to
ending
assets 7.24% 7.31% 7.89% 7.96% 8.36%
Ending tangible
shareholders'
equity to
ending tangible
assets 8.60% 8.70% 7.13% 7.18% 7.55%
Ending tangible
common
shareholders'
equity to
ending tangible
assets 6.54% 6.52% 7.13% 7.18% 7.55%
Average
shareholders'
equity to
average assets 9.29% 8.04% 7.96% 8.29% 8.39%
Average common
shareholders'
equity to
average assets 7.22% 7.82% 7.96% 8.29% 8.39%
Average tangible
shareholders'
equity to
average tangible
assets 8.59% 7.28% 7.18% 7.50% 7.58%
Average tangible
common
shareholders'
equity to
average tangible
assets 6.51% 7.05% 7.18% 7.50% 7.58%

SOURCE First Financial Bancorp

Investors/Analysts, Patti Forsythe, Vice President, Investor Relations,
+1-513-979-5837, patti.forsythe@bankatfirst.com, Media, Cheryl Lipp, First
Vice President, Marketing Director, +1-513-979-5797,
cheryl.lipp@bankatfirst.com