EXHIBIT 99.1

First Financial Bancorp Reports Second Quarter 2014 Financial Results and Announces Regulatory Approval of The First Bexley Bank and Insight Bank Transactions

Cincinnati, Ohio - July 24, 2014 - First Financial Bancorp (Nasdaq: FFBC) (“First Financial” or the “Company”) announced today financial and operational results for the second quarter 2014.

Second quarter net income was $16.0 million and earnings per diluted common share were $0.28. This compares with first quarter net income of $15.1 million and earnings per diluted common share of $0.26 and second quarter 2013 net income of $15.8 million and earnings per diluted common share of $0.27.

▪ Continued solid quarterly performance

• Quarterly results included several items which reduced pre-tax income by $0.5 million

• Return on average assets of 0.99%; 1.01% as adjusted for the items noted below

• Return on average tangible common equity of 10.73%; 10.94% as adjusted for the items noted below

▪ Capital ratios remain strong

• Tangible common equity to tangible assets of 9.39%

• Tier 1 capital ratio of 14.34%

• Total risk-based capital ratio of 15.59%

▪ Annualized total uncovered loan growth on a period-end and average basis of 5.4% and 11.6%, respectively

•Strong performance in specialty finance and residential mortgage lending

•Solid growth in traditional C&I / owner-occupied CRE and franchise lending

▪ Annualized total deposit growth on a period-end and average basis of 4.6% and 12.7%, respectively

• Annualized transaction deposit growth on a period-end and average basis of 3.9% and 15.1%, respectively

▪ Quarterly net interest margin of 3.70%, a decline of 12 bps compared to the linked quarter

• Covered loan balance decline negatively impacted margin by 7 bps

• Uncovered loan growth and higher fee income contributed a 2 bp improvement to margin

• Yield on investment portfolio declined 5 bps to 2.47%

• Cost of interest-bearing deposits increased 2 bps to 38 bps

▪ Continued improvement in asset quality metrics

• Total nonperforming assets declined $3.1 million, or 5.0%, and represent 0.89% of total assets compared to 0.95% for the linked quarter

• Net charge-offs declined $0.9 million, or 47.8%, compared to the linked quarter and totaled 11 bps of average uncovered loans on an annualized basis

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During the quarter, the Company incurred pre-tax acquisition-related expenses of $0.5 million. The Company also recognized a $0.2 million pre-tax gain related to the sale of a closed banking center, which was partially offset by $0.1 million of other costs associated with the execution of its efficiency initiatives during the period. In the aggregate, these items reduced pre-tax earnings by $0.5 million.

The board of directors has authorized a dividend of $0.15 per common share for the next regularly scheduled dividend, payable on October 1, 2014 to shareholders of record as of August 29, 2014.

First Financial did not repurchase shares under the previously announced share repurchase plan during the second quarter 2014 due to the Company's pending merger agreements and the increasingly active M&A environment industry-wide. The Company expects to continue the suspension of its share repurchase plan for the third quarter 2014.

Claude Davis, President and Chief Executive Officer, commented, “Our operating results for the quarter improved modestly as noninterest income recovered from the seasonal impact of the prior quarter and, combined with lower credit costs related to the uncovered loan portfolio, offset the impact of a decrease in net interest income driven primarily by the continued decline in covered loan balances.

“Loan production remained solid during the quarter as average uncovered loan balances increased $101.6 million, or 11.6% on an annualized basis, and end of period balances increased $48.5 million, or 5.4% on an annualized basis. The combination of an increase in payoffs and some anticipated late quarter production that slid into July impacted the quarter end balances. Our pipeline of commercial originations for the third quarter looks strong and our specialty finance pipeline was at an all-time high at the end of the second quarter with approximately half of the volume expected to close in July. Additionally, residential mortgage originations have rebounded with client receptivity to our portfolio product growing.

“Improvement in credit quality continued its strong trend as nonperforming loans declined $3.7 million, or 7.6%, compared to the linked quarter and are down almost 40% compared to June 30, 2013. We were especially pleased with our charge-off and recovery activity as net charge-offs dropped to 11 bps of average loan balances for the quarter and contributed to the decline in the provision for loan losses.

“And finally, we are extremely pleased to announce that we have received regulatory approval for The First Bexley Bank and Insight Bank transactions and are excited to formally launch the First Financial brand in the growth-oriented Columbus, Ohio market. Further, the integration process related to Guernsey Bancorp is well underway and we expect to close that transaction during the fourth quarter."

2

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income for the second quarter was $54.3 million as compared to $54.8 million for the first quarter 2014 and $58.1 million for the second quarter 2013. Compared to the linked quarter, total interest income decreased $0.3 million, or 0.4%, and total interest expense increased $0.3 million, or 6.1%. Net interest margin was 3.70% for the second quarter as compared to 3.82% for the first quarter 2014 and 4.02% for the second quarter 2013.

Interest income earned on loans decreased $0.3 million, or 0.5%, compared to the prior quarter. The decrease in interest income earned on loans was driven primarily by a decline of $46.9 million, or 10.8%, in average covered loan balances. Growth in average uncovered loan balances of $101.6 million, or 2.9% on a linked quarter basis, as well as modestly higher loan fees during the period helped to partially offset the impact on net interest income from covered loan activity during the quarter. The yield earned on the uncovered portfolio during the quarter was approximately 4.26%, an 8 bp decrease compared to the linked quarter.

Interest income earned from investment securities declined $0.1 million, or 0.9%, compared to the prior quarter as an increase in average balances of $3.6 million, or 0.2%, was offset by a decline in the yield earned on the portfolio of 5 bps to 2.47%.

The slight increase in total interest expense was due to an increase in deposit costs associated with deposit growth as well as changes in the composition of deposits during the period. Average time deposit balances increased $7.0 million, or 0.7%, with the portfolio's cost of funds increasing 4 bps compared to the linked quarter. Average savings deposits increased $68.6 million, or 4.2%, with the related cost of funds increasing 3 bps compared to the linked quarter. The cost of funds on total interest-bearing deposits increased 2 bp to 38 bps compared to the first quarter 2014. As a result of deposit growth during the period, average short-term borrowing balances declined $96.0 million, or 12.3%, while the related cost of funds was unchanged compared to the linked quarter.

NONINTEREST INCOME

The following table presents noninterest income for the three months ended June 30, 2014 and for the trailing four quarters, adjusted to exclude the impact of covered loan activity and other select items on the Company's reported balance.

Table I
	For the Three Months Ended
	June 30,		March 31,			December 31,			September 30,		June 30,
(Dollars in thousands)	2014		2014			2013			2013		2013
Total noninterest income	$	16,337	$	14,175		$	13,043		$	22,291	$	11,615
Selected components of noninterest income
Accelerated discount on covered loans 1	621		1,015			1,572			1,711		1,935
FDIC loss sharing income	1,108		(508		)	(3,385		)	5,555		(7,384		)
Gain on sale of investment securities	—		50			—			—		188
Other items not expected to recur	—		—			—			—		442
Total noninterest income excluding items noted above	$	14,608	$	13,618		$	14,856		$	15,025	$	16,434
1  Net of the related valuation adjustment on the FDIC indemnification asset

Excluding the items highlighted in Table I, noninterest income earned in the second quarter was $14.6 million compared to $13.6 million in the first quarter 2014 and $16.4 million in the second quarter 2013. The increase of $1.0 million compared to the linked quarter was driven by a rebound from seasonal and weather related declines experienced in service charges on deposit accounts and bankcard income during the first quarter as well as higher net gains on sales of residential mortgages and portfolio

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valuations related to client derivatives during the second quarter. This activity was partially offset by a decline in trust and wealth management fees during the second quarter.

NONINTEREST EXPENSE

The following table presents noninterest expense for the three months ended June 30, 2014 and for the trailing four quarters, adjusted to exclude the impact of covered asset activity and other select items on the Company's reported balance.

Table II
	For the Three Months Ended
	June 30,			March 31,		December 31,		September 30,		June 30,
(Dollars in thousands)	2014			2014		2013		2013		2013
Total noninterest expense	$	47,111		$	47,842	$	70,285	$	48,801	$	53,283
Selected components of noninterest expense
Loss (gain) - covered real estate owned	398			33		946		204		(2,212		)
Loss sharing expense	1,465			1,569		1,495		1,724		1,578
Pension settlement charges	—			—		462		1,396		4,316
Expenses associated with efficiency initiative	(59		)	350		1,450		1,051		1,518
FDIC indemnification asset valuation adjustment	—			—		22,417		—		—
Acquisition-related expenses	517			620		284		—		—
Other items not expected to recur	—			465		—		—		—
Total noninterest expense excluding items noted above	$	44,790		$	44,805	$	43,231	$	44,426	$	48,083
FDIC loss share support 1	$	630		$	862	$	844	$	841	$	795
1  Represents direct expenses associated with credit management and loan administration related to covered assets as well as compliance with FDIC loss sharing agreements; included in total noninterest expense excluding the items noted above and comprised of several noninterest expense line items

Excluding the items highlighted in Table II, noninterest expense was $44.8 million in both the first and second quarters of 2014 and $48.1 million in the second quarter 2013. Noninterest expense, as adjusted in Table II above, was unchanged from the linked quarter as higher salaries and employee benefit costs and other expense were offset by lower net occupancy and professional service costs during the period. Acquisition-related expenses during the period included $0.3 million of professional services expenses, $0.1 million of marketing costs and $0.1 million of other miscellaneous expenses.

INCOME TAXES

For the second quarter, income tax expense was $8.0 million, resulting in an effective tax rate of 33.3%, compared with income tax expense of $7.1 million and an effective tax rate of 31.9% during the first quarter 2014 and income tax expense of $6.5 million and an effective tax rate of 29.0% during the second quarter 2013. The increase in the effective tax rate as compared to the linked quarter is primarily related to a first quarter adjustment to deferred tax liabilities resulting from a favorable change in state tax laws. While the effective tax rate may fluctuate from quarter to quarter due to tax jurisdiction changes and the level of tax-enhanced assets, the overall effective tax rate for the full year is expected to be in the range of approximately 32.0% - 34.0%.

4

CREDIT QUALITY - EXCLUDING COVERED ASSETS

The following table presents certain credit quality metrics related to the Company's uncovered loan portfolio as of June 30, 2014 and the trailing four quarters.

Table III
	As of or for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2014			2014			2013			2013			2013
Total nonaccrual loans 1	$	32,418		$	35,334		$	37,605		$	57,926		$	62,011
Troubled debt restructurings - accruing	12,607			13,400			15,094			16,278			12,924
Total nonperforming loans	45,025			48,734			52,699			74,204			74,935
Total nonperforming assets	58,395			61,477			72,505			86,008			86,733
Nonperforming assets as a % of:
Period-end loans plus OREO	1.59		%	1.70		%	2.06		%	2.50		%	2.56		%
Total assets	0.89		%	0.95		%	1.13		%	1.38		%	1.38		%
Nonperforming assets ex. accruing TDRs as a % of:
Period-end loans plus OREO	1.25		%	1.33		%	1.63		%	2.03		%	2.17		%
Total assets	0.70		%	0.74		%	0.89		%	1.12		%	1.18		%
Nonperforming loans as a % of total loans	1.23		%	1.35		%	1.5		%	2.16		%	2.22		%
Provision for loan and lease losses - uncovered	$	29		$	1,159		$	1,851		$	1,413		$	2,409
Allowance for uncovered loan & lease losses	$	42,027		$	43,023		$	43,829		$	45,514		$	47,047
Allowance for loan & lease losses as a % of:
Total loans	1.15		%	1.19		%	1.25		%	1.33		%	1.39		%
Nonaccrual loans	129.6		%	121.8		%	116.6		%	78.6		%	75.9		%
Nonperforming loans	93.3		%	88.3		%	83.2		%	61.3		%	62.8		%
Total net charge-offs	$	1,025		$	1,965		$	3,536		$	2,946		$	3,668
Annualized net-charge-offs as a % of average
loans & leases	0.11		%	0.23		%	0.41		%	0.34		%	0.45		%
1 Includes nonaccrual troubled debt restructurings

Net Charge-offs

For the second quarter, net charge-offs totaled $1.0 million, a decline of $0.9 million, or 47.8%, compared to the linked quarter.

Nonperforming Assets

Nonaccrual loans, including nonaccrual troubled debt restructurings, decreased $2.9 million, or 8.3%, to $32.4 million as of June 30, 2014 from $35.3 million as of March 31, 2014. Contributing to the decline were four commercial and commercial real estate credits totaling $8.0 million in the aggregate that paid off during the period. This activity was partially offset by other activity during the period, including the addition of two commercial and three commercial real estate credits totaling $5.5 million in the aggregate.

Accruing troubled debt restructurings decreased $0.8 million, or 5.9%, to $12.6 million as of June 30, 2014 from $13.4 million as of March 31, 2014. This decline was primarily related to a $0.5 million commercial credit that paid off during the second quarter.

OREO increased $0.6 million, or 4.9%, to $13.4 million during the second quarter as $1.5 million of additions exceeded resolutions and valuation adjustments of $0.9 million. Additions during the second quarter included a $0.6 million residential property and a $0.3 million commercial property.

Classified assets increased $0.3 million, or 0.3%, to $103.8 million as of June 30, 2014 from $103.5 million as of March 31, 2014 but declined $26.0 million, or 20.1%, from $129.8 million as of June 30, 2013. Classified assets are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse.

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Delinquent Loans

As of June 30, 2014, loans 30-to-89 days past due totaled $5.7 million, or 0.16% of period-end loans, compared to $13.9 million, or 0.38%, as of March 31, 2014 and $13.4 million, or 0.40%, as of June 30, 2013. The $8.2 million, or 58.8%, decline during the second quarter was driven primarily by a $7.5 million decrease in delinquent commercial real estate loans during the period.

LOANS (EXCLUDING COVERED LOANS)

The following table presents the loan portfolio, excluding covered loans, as of June 30, 2014, March 31, 2014 and June 30, 2013.

Table IV
	As of
	June 30, 2014				March 31, 2014				June 30, 2013
			Percent				Percent				Percent
(Dollars in thousands)	Balance		of Total		Balance		of Total		Balance		of Total
Commercial	$	1,143,693	31.2	%	$	1,118,057	30.9	%	$	940,420	27.8	%
Real estate - construction	113,682		3.1	%	87,996		2.4	%	97,246		2.9	%
Real estate - commercial	1,491,731		40.7	%	1,513,891		41.9	%	1,477,226		43.7	%
Real estate - residential	372,601		10.2	%	360,671		10.0	%	343,016		10.1	%
Installment	43,338		1.2	%	44,911		1.2	%	50,781		1.5	%
Home equity	380,746		10.4	%	374,427		10.4	%	370,206		10.9	%
Credit card	35,656		1.0	%	34,458		1.0	%	33,222		1.0	%
Lease financing	81,212		2.2	%	79,792		2.2	%	70,011		2.1	%
Total	$	3,662,659	100.0	%	$	3,614,203	100.0	%	$	3,382,128	100.0	%

Loans, excluding covered loans, totaled $3.7 billion as of June 30, 2014, increasing $48.5 million, or 5.4% on an annualized basis, compared to the linked quarter and $280.5 million, or 8.3%, compared to June 30, 2013. The increase relative to the linked quarter was driven by strong growth in specialty finance and residential mortgage balances as well as traditional C&I / owner-occupied commercial real estate and franchise finance during the period.

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INVESTMENTS

The following table presents a summary of the total investment portfolio at June 30, 2014.

Table V
	As of June 30, 2014
	Held-to-		Available-for-						Percent
(Dollars in thousands)	Maturity		Sale		Other		Total		of Portfolio
Debt obligations of the U.S. Government	$	—	$	20,734	$	—	$	20,734	1.1	%
Debt obligations of U.S. Government Agency	18,308		9,552		—		27,860		1.5	%
Residential Mortgage Backed Securities
Pass-through securities:
Agency fixed rate	80,232		101,413		—		181,645		9.9	%
Agency adjustable rate	152,463		39,759		—		192,222		10.4	%
Non-Agency fixed rate	—		9,287		—		9,287		0.5	%
Collateralized mortgage obligations:
Agency fixed rate	341,497		266,679		—		608,176		33.0	%
Agency variable rate	—		109,879		—		109,879		6.0	%
Agency collateralized and insured municipal securities	78,812		111,328		—		190,140		10.3	%
Commercial mortgage backed securities	222,280		115,448		—		337,728		18.3	%
Municipal bond securities	1,115		1,391		—		2,506		0.1	%
Corporate securities	4,795		56,019		—		60,814		3.3	%
Asset-backed securities	—		47,996		—		47,996		2.6	%
Regulatory stock	—		—		42,576		42,576		2.3	%
Other	—		8,230		5,064		13,294		0.7	%
	$	899,502	$	897,715	$	47,640	$	1,844,857	100.0	%

The investment portfolio increased $43.9 million, or 2.4%, to $1.8 billion during the second quarter as $81.9 million of purchases were partially offset by amortizations and other portfolio reductions. As of June 30, 2014, the overall duration of the investment portfolio decreased to 3.9 years compared to 4.2 years as of March 31, 2014. The yield earned on the portfolio during the quarter decreased 5 bps to 2.47% from 2.52% for the linked quarter, driven by lower reinvestment rates and higher prepayment speeds on mortgage-related assets. Due primarily to improved asset pricing at quarter-end, the net unrealized loss included in accumulated other comprehensive loss related to the investment portfolio improved $6.5 million to $6.0 million as of June 30, 2014.

DEPOSITS

Non-time deposit balances totaled $3.9 billion as of June 30, 2014, increasing $37.7 million, or 1.0%, compared to the linked quarter. The average balance of non-time deposits totaled $4.0 billion as of June 30, 2014, increasing $144.3 million, or 3.8%, compared to the linked quarter due to a seasonal inflow of public fund deposits and, to a lesser extent, an increase in commercial transaction deposits.

Time deposit balances increased $17.1 million, or 1.8%, to $973.1 million as of June 30, 2014. Average time deposit balances totaled $960.4 million as of June 30, 2014, increasing $7.0 million, or 0.7%, compared to the linked quarter due to an increase in consumer balances.

The Company’s total cost of deposit funding, inclusive of noninterest-bearing balances, was 29 bps for the quarter, representing an increase of 1 bp compared to the prior quarter and 2 bps compared to the second quarter 2013.

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CAPITAL MANAGEMENT

The following table presents First Financial's regulatory and other capital ratios as of June 30, 2014, March 31, 2014 and June 30, 2013.

Table VI
	As of
	June 30,			March 31,			June 30,
	2014			2014			2013
Leverage Ratio	9.99		%	9.94		%	10.12		%
Tier 1 Capital Ratio	14.34		%	14.42		%	15.41		%
Total Risk-Based Capital Ratio	15.59		%	15.67		%	16.68		%
Ending tangible shareholders' equity
to ending tangible assets	9.39		%	9.23		%	9.62		%
Ending tangible common shareholders'
equity to ending tangible assets	9.39		%	9.23		%	9.62		%
Tangible book value per share	$	10.49		$	10.24		$	10.29

Shareholders’ equity increased $14.5 million during the quarter due to net income for the quarter and a decline in the unrealized loss related to the investment portfolio, partially offset by declared dividends. The Company’s Tier I and total risk-based capital ratios declined during the quarter due primarily to an increase in risk-weighted assets resulting from uncovered loan growth. The Company’s tangible common equity ratio and leverage ratio increased during the quarter as the increase in tangible common equity outweighed the increase in tangible assets. Regulatory capital ratios as of June 30, 2014 are considered preliminary pending the filing of the Company’s regulatory reports.

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Teleconference / Webcast Information

First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Friday, July 25, 2014 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 through August 11, 2014 at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10045038. The webcast will be archived on the Investor Relations section of the Company’s website through July 25, 2015.

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/investor.

About First Financial Bancorp

First Financial Bancorp is a Cincinnati, Ohio based bank holding company. As of June 30, 2014, the Company had $6.5 billion in assets, $4.0 billion in loans, $4.9 billion in deposits and $706 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 $2.5 billion in assets under management as of June 30, 2014. The Company’s strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 105 banking centers. Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.

Important Information for Investors and Shareholders

This communication does not constitute an offer of any securities for sale. This communication is being made in respect of the proposed transactions involving First Financial, The First Bexley Bank and Insight Bank. In connection with the proposed transactions, the Company filed with the SEC registration statements on Form S-4 that included proxy statements/prospectuses for the shareholders of First Bexley and Insight. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTIONS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT FIRST FINANCIAL, FIRST BEXLEY AND INSIGHT AND THE PROPOSED TRANSACTIONS. Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. Investors may also obtain these documents, without charge, from First Financial’s website at http://www.bankatfirst.com or by contacting First Financial’s investor relations department at (877) 322-9530.

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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, including the recently announced acquisitions of The First Bexley Bank, Insight Bank and Guernsey Bancorp; 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, 2013, 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/AnalystsMedia

Kenneth LovikJenny Keighley

Senior Vice President, Investor Relations andAssistant Vice President, Media Relations Manager

Corporate Development(513) 979-5582

(513) 979-5837jennifer.keighley@bankatfirst.com

kenneth.lovik@bankatfirst.com

10

Selected Financial Information

June 30, 2014

(unaudited)

Contents	Page
Consolidated Financial Highlights	2
Consolidated Statements of Income	3
Consolidated Quarterly Statements of Income	4 - 5
Consolidated Statements of Condition	6
Average Consolidated Statements of Condition	7
Net Interest Margin Rate / Volume Analysis	8 - 9
Credit Quality	10
Capital Adequacy	11
Supplemental Information on Covered Assets	12 - 14

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended,															Six months ended,
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,
	2014			2014			2013			2013			2013			2014			2013
RESULTS OF OPERATIONS
Net income	$	15,953		$	15,104		$	3,785		$	14,911		$	15,829		$	31,057		$	29,653
Net earnings per share - basic	$	0.28		$	0.26		$	0.07		$	0.26		$	0.28		$	0.54		$	0.52
Net earnings per share - diluted	$	0.28		$	0.26		$	0.07		$	0.26		$	0.27		$	0.54		$	0.51
Dividends declared per share	$	0.15		$	0.15		$	0.15		$	0.27		$	0.24		$	0.30		$	0.52
KEY FINANCIAL RATIOS
Return on average assets	0.99		%	0.96		%	0.24		%	0.96		%	1.01		%	0.97		%	0.94		%
Return on average shareholders' equity	9.19		%	8.95		%	2.15		%	8.53		%	9.02		%	9.07		%	8.47		%
Return on average tangible shareholders' equity	10.73		%	10.49		%	2.51		%	10.00		%	10.54		%	10.61		%	9.89		%
Net interest margin	3.70		%	3.82		%	3.90		%	3.91		%	4.02		%	3.76		%	4.03		%
Net interest margin (fully tax equivalent) (1)	3.76		%	3.87		%	3.94		%	3.95		%	4.06		%	3.81		%	4.07		%
Ending shareholders' equity as a percent of ending assets	10.78		%	10.64		%	10.63		%	11.07		%	11.08		%	10.78		%	11.08		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets	9.39		%	9.23		%	9.20		%	9.60		%	9.62		%	9.39		%	9.62		%
Risk-weighted assets	13.56		%	13.50		%	13.59		%	14.27		%	14.50		%	13.56		%	14.50		%
Average shareholders' equity as a percent of average assets	10.79		%	10.69		%	11.23		%	11.19		%	11.15		%	10.74		%	11.12		%
Average tangible shareholders' equity as a percent of
average tangible assets	9.38		%	9.27		%	9.77		%	9.71		%	9.70		%	9.33		%	9.68		%
Book value per share	$	12.23		$	11.98		$	11.86		$	11.99		$	12.05		$	12.23		$	12.05
Tangible book value per share	$	10.49		$	10.24		$	10.10		$	10.24		$	10.29		$	10.49		$	10.29
Tier 1 Ratio (2)	14.34		%	14.42		%	14.61		%	15.26		%	15.41		%	14.34		%	15.41		%
Total Capital Ratio (2)	15.59		%	15.67		%	15.88		%	16.53		%	16.68		%	15.59		%	16.68		%
Leverage Ratio (2)	9.99		%	9.94		%	10.11		%	10.29		%	10.12		%	9.99		%	10.12		%
AVERAGE BALANCE SHEET ITEMS
Loans (3)	$	3,637,458		$	3,532,311		$	3,450,069		$	3,410,102		$	3,313,731		$	3,585,175		$	3,260,054
Covered loans and FDIC indemnification asset	421,603			478,326			568,385			655,654			758,875			449,808			799,308
Investment securities	1,811,175			1,807,571			1,654,374			1,589,666			1,705,219			1,809,383			1,771,632
Interest-bearing deposits with other banks	10,697			2,922			4,906			4,010			13,890			6,831			8,503
Total earning assets	$	5,880,933		$	5,821,130		$	5,677,734		$	5,659,432		$	5,791,715		$	5,851,197		$	5,839,497
Total assets	$	6,454,252		$	6,399,235		$	6,232,971		$	6,193,722		$	6,310,602		$	6,426,895		$	6,350,604
Noninterest-bearing deposits	$	1,110,697		$	1,096,509		$	1,129,097		$	1,072,259		$	1,063,102		$	1,103,642		$	1,056,559
Interest-bearing deposits	3,832,295			3,695,177			3,720,809			3,654,311			3,792,891			3,764,115			3,789,167
Total deposits	$	4,942,992		$	4,791,686		$	4,849,906		$	4,726,570		$	4,855,993		$	4,867,757		$	4,845,726
Borrowings	$	745,990		$	842,479		$	583,522		$	667,706		$	644,058		$	793,968		$	689,441
Shareholders' equity	$	696,609		$	684,332		$	700,063		$	693,158		$	703,804		$	690,504		$	706,319
CREDIT QUALITY RATIOS (excluding covered assets)
Allowance to ending loans	1.15		%	1.19		%	1.25		%	1.33		%	1.39		%	1.15		%	1.39		%
Allowance to nonaccrual loans	129.64		%	121.76		%	116.55		%	78.57		%	75.87		%	129.64		%	75.87		%
Allowance to nonperforming loans	93.34		%	88.28		%	83.17		%	61.34		%	62.78		%	93.34		%	62.78		%
Nonperforming loans to total loans	1.23		%	1.35		%	1.50		%	2.16		%	2.22		%	1.23		%	2.22		%
Nonperforming assets to ending loans, plus OREO	1.59		%	1.70		%	2.06		%	2.50		%	2.56		%	1.59		%	2.56		%
Nonperforming assets to total assets	0.89		%	0.95		%	1.13		%	1.38		%	1.38		%	0.89		%	1.38		%
Net charge-offs to average loans (annualized)	0.11		%	0.23		%	0.41		%	0.34		%	0.45		%	0.17		%	0.38		%

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

(2) June 30, 2014 regulatory capital ratios are preliminary.

(3) Includes loans held for sale.

2

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	Three months ended,								Six months ended,
	Jun. 30,								Jun. 30,
	2014			2013			% Change		2014			2013			% Change
Interest income
Loans, including fees	$	48,877		$	55,022		(11.2	)%	$	98,024		$	111,047		(11.7	)%
Investment securities
Taxable	10,355			8,295			24.8	%	20,792			16,671			24.7	%
Tax-exempt	796			560			42.1	%	1,606			1,140			40.9	%
Total investment securities interest	11,151			8,855			25.9	%	22,398			17,811			25.8	%
Other earning assets	(1,301		)	(1,556		)	(16.4	)%	(2,707		)	(3,028		)	(10.6	)%
Total interest income	58,727			62,321			(5.8	)%	117,715			125,830			(6.4	)%
Interest expense
Deposits	3,606			3,284			9.8	%	6,922			7,144			(3.1	)%
Short-term borrowings	292			305			(4.3	)%	621			634			(2.1	)%
Long-term borrowings	525			654			(19.7	)%	1,049			1,308			(19.8	)%
Total interest expense	4,423			4,243			4.2	%	8,592			9,086			(5.4	)%
Net interest income	54,304			58,078			(6.5	)%	109,123			116,744			(6.5	)%
Provision for loan and lease losses - uncovered	29			2,409			(98.8	)%	1,188			5,450			(78.2	)%
Provision for loan and lease losses - covered	(413		)	(8,283		)	(95.0	)%	(2,605		)	759			(443.2	)%
Net interest income after provision for loan and lease losses	54,688			63,952			(14.5	)%	110,540			110,535			0.0	%
Noninterest income
Service charges on deposit accounts	5,137			5,205			(1.3	)%	9,909			9,922			(0.1	)%
Trust and wealth management fees	3,305			3,497			(5.5	)%	7,051			7,447			(5.3	)%
Bankcard income	2,809			3,145			(10.7	)%	5,242			5,578			(6.0	)%
Net gains from sales of loans	737			1,089			(32.3	)%	1,133			1,795			(36.9	)%
Gain on sale of investment securities	0			188			(100.0	)%	50			1,724			(97.1	)%
FDIC loss sharing income	1,108			(7,384		)	115.0	%	600			1,550			(61.3	)%
Accelerated discount on covered loans	621			1,935			(67.9	)%	1,636			3,870			(57.7	)%
Other	2,620			3,940			(33.5	)%	4,891			6,427			(23.9	)%
Total noninterest income	16,337			11,615			40.7	%	30,512			38,313			(20.4	)%
Noninterest expenses
Salaries and employee benefits	25,615			26,216			(2.3	)%	50,876			53,545			(5.0	)%
Pension settlement charges	0			4,316			(100.0	)%	0			4,316			(100.0	)%
Net occupancy	4,505			5,384			(16.3	)%	9,804			11,549			(15.1	)%
Furniture and equipment	1,983			2,250			(11.9	)%	4,060			4,621			(12.1	)%
Data processing	2,770			2,559			8.2	%	5,628			5,028			11.9	%
Marketing	830			1,182			(29.8	)%	1,616			2,079			(22.3	)%
Communication	562			781			(28.0	)%	1,185			1,614			(26.6	)%
Professional services	1,449			1,764			(17.9	)%	3,173			3,567			(11.0	)%
State intangible tax	644			1,004			(35.9	)%	1,288			2,018			(36.2	)%
FDIC assessments	1,074			1,148			(6.4	)%	2,208			2,273			(2.9	)%
Loss (gain) - other real estate owned	313			216			44.9	%	731			718			1.8	%
Loss (gain) - covered other real estate owned	398			(2,212		)	118.0	%	431			(2,369		)	118.2	%
Loss sharing expense	1,465			1,578			(7.2	)%	3,034			3,864			(21.5	)%
Other	5,503			7,097			(22.5	)%	10,919			13,566			(19.5	)%
Total noninterest expenses	47,111			53,283			(11.6	)%	94,953			106,389			(10.7	)%
Income before income taxes	23,914			22,284			7.3	%	46,099			42,459			8.6	%
Income tax expense	7,961			6,455			23.3	%	15,042			12,806			17.5	%
Net income	$	15,953		$	15,829		0.8	%	$	31,057		$	29,653		4.7	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.28		$	0.28				$	0.54		$	0.52
Net earnings per share - diluted	$	0.28		$	0.27				$	0.54		$	0.51
Dividends declared per share	$	0.15		$	0.24				$	0.30		$	0.52
Return on average assets	0.99		%	1.01		%			0.97		%	0.94		%
Return on average shareholders' equity	9.19		%	9.02		%			9.07		%	8.47		%
Interest income	$	58,727		$	62,321		(5.8	)%	$	117,715		$	125,830		(6.4	)%
Tax equivalent adjustment	758			514			47.5	%	1,460			991			47.3	%
Interest income - tax equivalent	59,485			62,835			(5.3	)%	119,175			126,821			(6.0	)%
Interest expense	4,423			4,243			4.2	%	8,592			9,086			(5.4	)%
Net interest income - tax equivalent	$	55,062		$	58,592		(6.0	)%	$	110,583		$	117,735		(6.1	)%
Net interest margin	3.70		%	4.02		%			3.76		%	4.03		%
Net interest margin (fully tax equivalent) (1)	3.76		%	4.06		%			3.81		%	4.07		%
Full-time equivalent employees	1,296			1,338
(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.

3

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2014
	Second			First						% Change
	Quarter			Quarter			YTD			Linked Qtr.
Interest income
Loans, including fees	$	48,877		$	49,147		$	98,024		(0.5	)%
Investment securities
Taxable	10,355			10,437			20,792			(0.8	)%
Tax-exempt	796			810			1,606			(1.7	)%
Total investment securities interest	11,151			11,247			22,398			(0.9	)%
Other earning assets	(1,301		)	(1,406		)	(2,707		)	(7.5	)%
Total interest income	58,727			58,988			117,715			(0.4	)%
Interest expense
Deposits	3,606			3,316			6,922			8.7	%
Short-term borrowings	292			329			621			(11.2	)%
Long-term borrowings	525			524			1,049			0.2	%
Total interest expense	4,423			4,169			8,592			6.1	%
Net interest income	54,304			54,819			109,123			(0.9	)%
Provision for loan and lease losses - uncovered	29			1,159			1,188			(97.5	)%
Provision for loan and lease losses - covered	(413		)	(2,192		)	(2,605		)	(81.2	)%
Net interest income after provision for loan and lease losses	54,688			55,852			110,540			(2.1	)%
Noninterest income
Service charges on deposit accounts	5,137			4,772			9,909			7.6	%
Trust and wealth management fees	3,305			3,746			7,051			(11.8	)%
Bankcard income	2,809			2,433			5,242			15.5	%
Net gains from sales of loans	737			396			1,133			86.1	%
Gain on sale of investment securities	0			50			50			(100.0	)%
FDIC loss sharing income	1,108			(508		)	600			318.1	%
Accelerated discount on covered loans	621			1,015			1,636			(38.8	)%
Other	2,620			2,271			4,891			15.4	%
Total noninterest income	16,337			14,175			30,512			15.3	%
Noninterest expenses
Salaries and employee benefits	25,615			25,261			50,876			1.4	%
Net occupancy	4,505			5,299			9,804			(15.0	)%
Furniture and equipment	1,983			2,077			4,060			(4.5	)%
Data processing	2,770			2,858			5,628			(3.1	)%
Marketing	830			786			1,616			5.6	%
Communication	562			623			1,185			(9.8	)%
Professional services	1,449			1,724			3,173			(16.0	)%
State intangible tax	644			644			1,288			0.0	%
FDIC assessments	1,074			1,134			2,208			(5.3	)%
Loss (gain) - other real estate owned	313			418			731			(25.1	)%
Loss (gain) - covered other real estate owned	398			33			431			1,106.1	%
Loss sharing expense	1,465			1,569			3,034			(6.6	)%
Other	5,503			5,416			10,919			1.6	%
Total noninterest expenses	47,111			47,842			94,953			(1.5	)%
Income before income taxes	23,914			22,185			46,099			7.8	%
Income tax expense	7,961			7,081			15,042			12.4	%
Net income	$	15,953		$	15,104		$	31,057		5.6	%
ADDITIONAL DATA
Net earnings per share - basic	$	0.28		$	0.26		$	0.54
Net earnings per share - diluted	$	0.28		$	0.26		$	0.54
Dividends declared per share	$	0.15		$	0.15		$	0.30
Return on average assets	0.99		%	0.96		%	0.97		%
Return on average shareholders' equity	9.19		%	8.95		%	9.07		%
Interest income	$	58,727		$	58,988		$	117,715		(0.4	)%
Tax equivalent adjustment	758			702			1,460			8.0	%
Interest income - tax equivalent	59,485			59,690			119,175			(0.3	)%
Interest expense	4,423			4,169			8,592			6.1	%
Net interest income - tax equivalent	$	55,062		$	55,521		$	110,583		(0.8	)%
Net interest margin	3.70		%	3.82		%	3.76		%
Net interest margin (fully tax equivalent) (1)	3.76		%	3.87		%	3.81		%
Full-time equivalent employees	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 provided useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.

4

FIRST FINANCIAL BANCORP.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
	2013
	Fourth			Third			Second			First			Full
	Quarter			Quarter			Quarter			Quarter			Year
Interest income
Loans, including fees	$	52,351		$	52,908		$	55,022		$	56,025		$	216,306
Investment securities
Taxable	9,209			8,267			8,295			8,376			34,147
Tax-exempt	719			541			560			580			2,400
Total investment securities interest	9,928			8,808			8,855			8,956			36,547
Other earning assets	(2,432		)	(2,185		)	(1,556		)	(1,472		)	(7,645		)
Total interest income	59,847			59,531			62,321			63,509			245,208
Interest expense
Deposits	3,247			2,856			3,284			3,860			13,247
Short-term borrowings	257			286			305			329			1,177
Long-term borrowings	539			617			654			654			2,464
Total interest expense	4,043			3,759			4,243			4,843			16,888
Net interest income	55,804			55,772			58,078			58,666			228,320
Provision for loan and lease losses - uncovered	1,851			1,413			2,409			3,041			8,714
Provision for loan and lease losses - covered	(5,857		)	5,293			(8,283		)	9,042			195
Net interest income after provision for loan and lease losses	59,810			49,066			63,952			46,583			219,411
Noninterest income
Service charges on deposit accounts	5,226			5,447			5,205			4,717			20,595
Trust and wealth management fees	3,506			3,366			3,497			3,950			14,319
Bankcard income	2,699			2,637			3,145			2,433			10,914
Net gains from sales of loans	604			751			1,089			706			3,150
Gain on sale of investment securities	0			0			188			1,536			1,724
FDIC loss sharing income	(3,385		)	5,555			(7,384		)	8,934			3,720
Accelerated discount on covered loans	1,572			1,711			1,935			1,935			7,153
Other	2,821			2,824			3,940			2,487			12,072
Total noninterest income	13,043			22,291			11,615			26,698			73,647
Noninterest expenses
Salaries and employee benefits	24,023			23,834			26,216			27,329			101,402
Pension settlement charges	462			1,396			4,316			0			6,174
Net occupancy	4,557			5,101			5,384			6,165			21,207
Furniture and equipment	2,136			2,213			2,250			2,371			8,970
Data processing	2,617			2,584			2,559			2,469			10,229
Marketing	999			1,192			1,182			897			4,270
Communication	728			865			781			833			3,207
Professional services	1,781			1,528			1,764			1,803			6,876
State intangible tax	901			1,010			1,004			1,014			3,929
FDIC assessments	1,121			1,107			1,148			1,125			4,501
Loss (gain) - other real estate owned	348			184			216			502			1,250
Loss (gain) - covered other real estate owned	946			204			(2,212		)	(157		)	(1,219		)
Loss sharing expense	1,495			1,724			1,578			2,286			7,083
FDIC indemnification impairment	22,417			0			0			0			22,417
Other	5,754			5,859			7,097			6,469			25,179
Total noninterest expenses	70,285			48,801			53,283			53,106			225,475
Income before income taxes	2,568			22,556			22,284			20,175			67,583
Income tax expense	(1,217		)	7,645			6,455			6,351			19,234
Net income	$	3,785		$	14,911		$	15,829		$	13,824		$	48,349
ADDITIONAL DATA
Net earnings per share - basic	$	0.07		$	0.26		$	0.28		$	0.24		$	0.84
Net earnings per share - diluted	$	0.07		$	0.26		$	0.27		$	0.24		$	0.83
Dividends declared per share	$	0.15		$	0.27		$	0.24		$	0.28		$	0.94
Return on average assets	0.24		%	0.96		%	1.01		%	0.88		%	0.77		%
Return on average shareholders' equity	2.15		%	8.53		%	9.02		%	7.91		%	6.89		%
Interest income	$	59,847		$	59,531		$	62,321		$	63,509		$	245,208
Tax equivalent adjustment	635			516			514			477			2,142
Interest income - tax equivalent	60,482			60,047			62,835			63,986			247,350
Interest expense	4,043			3,759			4,243			4,843			16,888
Net interest income - tax equivalent	$	56,439		$	56,288		$	58,592		$	59,143		$	230,462
Net interest margin	3.90		%	3.91		%	4.02		%	4.04		%	3.97		%
Net interest margin (fully tax equivalent) (1)	3.94		%	3.95		%	4.06		%	4.07		%	4.01		%
Full-time equivalent employees	1,306			1,292			1,338			1,385
(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.

5

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			% Change		% Change
	2014			2014			2013			2013			2013			Linked Qtr.		Comparable Qtr.
ASSETS
Cash and due from banks	$	123,160		$	161,515		$	117,620		$	177,698		$	114,745		(23.7	)%	7.3	%
Interest-bearing deposits with other banks	39,237			9,681			25,830			10,414			2,671			305.3	%	1,369.0	%
Investment securities available-for-sale	897,715			862,526			913,601			854,747			884,694			4.1	%	1.5	%
Investment securities held-to-maturity	899,502			890,806			837,272			669,093			670,246			1.0	%	34.2	%
Other investments	47,640			47,659			47,427			75,945			75,645			0.0	%	(37.0	)%
Loans held for sale	13,108			6,171			8,114			10,704			18,650			112.4	%	(29.7	)%
Loans
Commercial	1,143,693			1,118,057			1,035,668			960,016			940,420			2.3	%	21.6	%
Real estate - construction	113,682			87,996			80,741			90,089			97,246			29.2	%	16.9	%
Real estate - commercial	1,491,731			1,513,891			1,496,987			1,493,969			1,477,226			(1.5	)%	1.0	%
Real estate - residential	372,601			360,671			352,931			352,830			343,016			3.3	%	8.6	%
Installment	43,338			44,911			47,133			49,273			50,781			(3.5	)%	(14.7	)%
Home equity	380,746			374,427			376,454			373,839			370,206			1.7	%	2.8	%
Credit card	35,656			34,458			35,592			34,285			33,222			3.5	%	7.3	%
Lease financing	81,212			79,792			80,135			76,615			70,011			1.8	%	16.0	%
Total loans, excluding covered loans	3,662,659			3,614,203			3,505,641			3,430,916			3,382,128			1.3	%	8.3	%
Less
Allowance for loan and lease losses	42,027			43,023			43,829			45,514			47,047			(2.3	)%	(10.7	)%
Net loans - uncovered	3,620,632			3,571,180			3,461,812			3,385,402			3,335,081			1.4	%	8.6	%
Covered loans	365,603			409,405			457,873			518,524			622,265			(10.7	)%	(41.2	)%
Less
Allowance for loan and lease losses	12,425			10,573			18,901			23,259			32,961			17.5	%	(62.3	)%
Net loans - covered	353,178			398,832			438,972			495,265			589,304			(11.4	)%	(40.1	)%
Net loans	3,973,810			3,970,012			3,900,784			3,880,667			3,924,385			0.1	%	1.3	%
Premises and equipment	133,418			135,105			137,110			139,125			142,675			(1.2	)%	(6.5	)%
Goodwill	95,050			95,050			95,050			95,050			95,050			0.0	%	0.0	%
Other intangibles	5,344			5,566			5,924			6,249			6,620			(4.0	)%	(19.3	)%
FDIC indemnification asset	30,420			39,003			45,091			78,132			88,966			(22.0	)%	(65.8	)%
Accrued interest and other assets	287,340			275,995			283,390			255,617			250,228			4.1	%	14.8	%
Total Assets	$	6,545,744		$	6,499,089		$	6,417,213		$	6,253,441		$	6,274,575		0.7	%	4.3	%
LIABILITIES
Deposits
Interest-bearing demand	$	1,105,031		$	1,102,029		$	1,125,723		$	1,068,067		$	1,131,466		0.3	%	(2.3	)%
Savings	1,656,798			1,639,495			1,612,005			1,593,895			1,601,122			1.1	%	3.5	%
Time	973,100			956,049			952,327			926,029			978,680			1.8	%	(0.6	)%
Total interest-bearing deposits	3,734,929			3,697,573			3,690,055			3,587,991			3,711,268			1.0	%	0.6	%
Noninterest-bearing	1,140,198			1,122,816			1,147,452			1,141,016			1,059,368			1.5	%	7.6	%
Total deposits	4,875,127			4,820,389			4,837,507			4,729,007			4,770,636			1.1	%	2.2	%
Federal funds purchased and securities sold
under agreements to repurchase	128,013			112,293			94,749			105,472			114,030			14.0	%	12.3	%
FHLB short-term borrowings	686,300			722,800			654,000			518,200			505,900			(5.0	)%	35.7	%
Total short-term borrowings	814,313			835,093			748,749			623,672			619,930			(2.5	)%	31.4	%
Long-term debt	59,693			60,163			60,780			61,088			73,957			(0.8	)%	(19.3	)%
Total borrowed funds	874,006			895,256			809,529			684,760			693,887			(2.4	)%	26.0	%
Accrued interest and other liabilities	90,780			92,097			88,016			147,635			114,600			(1.4	)%	(20.8	)%
Total Liabilities	5,839,913			5,807,742			5,735,052			5,561,402			5,579,123			0.6	%	4.7	%
SHAREHOLDERS' EQUITY
Common stock	574,206			573,243			577,076			577,429			576,641			0.2	%	(0.4	)%
Retained earnings	337,971			330,672			324,192			328,993			329,633			2.2	%	2.5	%
Accumulated other comprehensive loss	(21,569		)	(27,648		)	(31,281		)	(29,294		)	(25,645		)	(22.0	)%	(15.9	)%
Treasury stock, at cost	(184,777		)	(184,920		)	(187,826		)	(185,089		)	(185,177		)	(0.1	)%	(0.2	)%
Total Shareholders' Equity	705,831			691,347			682,161			692,039			695,452			2.1	%	1.5	%
Total Liabilities and Shareholders' Equity	$	6,545,744		$	6,499,089		$	6,417,213		$	6,253,441		$	6,274,575		0.7	%	4.3	%

6

FIRST FINANCIAL BANCORP.
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
	Quarterly Averages															Year-to-Date Averages
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,
	2014			2014			2013			2013			2013			2014			2013
ASSETS
Cash and due from banks	$	118,947		$	123,583		$	110,246		$	120,154		$	119,909		$	121,252		$	115,777
Interest-bearing deposits with other banks	10,697			2,922			4,906			4,010			13,890			6,831			8,503
Investment securities	1,811,175			1,807,571			1,654,374			1,589,666			1,705,219			1,809,383			1,771,632
Loans held for sale	8,464			4,924			7,990			13,349			19,722			6,704			20,405
Loans
Commercial	1,117,483			1,062,225			986,438			937,939			904,029			1,090,006			883,840
Real estate - construction	97,052			83,095			79,194			93,103			93,813			90,112			87,527
Real estate - commercial	1,511,769			1,491,569			1,489,858			1,488,047			1,445,626			1,501,725			1,428,791
Real estate - residential	365,118			355,593			351,929			347,110			334,652			360,382			329,240
Installment	43,786			45,642			47,733			50,130			52,313			44,709			53,492
Home equity	378,010			374,503			374,919			371,072			367,408			376,266			366,493
Credit card	35,321			34,663			35,673			34,176			33,785			34,994			33,544
Lease financing	80,455			80,097			76,335			75,176			62,383			80,277			56,722
Total loans, excluding covered loans	3,628,994			3,527,387			3,442,079			3,396,753			3,294,009			3,578,471			3,239,649
Less
Allowance for loan and lease losses	43,559			44,273			46,531			49,451			50,172			43,914			49,792
Net loans - uncovered	3,585,435			3,483,114			3,395,548			3,347,302			3,243,837			3,534,557			3,189,857
Covered loans	387,616			434,527			490,072			573,243			653,892			410,942			689,173
Less
Allowance for loan and lease losses	11,590			17,629			21,733			31,208			41,861			14,593			43,971
Net loans - covered	376,026			416,898			468,339			542,035			612,031			396,349			645,202
Net loans	3,961,461			3,900,012			3,863,887			3,889,337			3,855,868			3,930,906			3,835,059
Premises and equipment	134,522			136,624			138,644			141,498			144,759			135,567			146,050
Goodwill	95,050			95,050			95,050			95,050			95,050			95,050			95,050
Other intangibles	5,445			5,723			6,075			6,428			6,831			5,583			7,087
FDIC indemnification asset	33,987			43,799			78,313			82,411			104,983			38,866			110,135
Accrued interest and other assets	274,504			279,027			273,486			251,819			244,371			276,753			240,906
Total Assets	$	6,454,252		$	6,399,235		$	6,232,971		$	6,193,722		$	6,310,602		$	6,426,895		$	6,350,604
LIABILITIES
Deposits
Interest-bearing demand	$	1,169,350		$	1,107,844		$	1,150,275		$	1,098,524		$	1,141,767		$	1,138,767		$	1,127,296
Savings	1,702,521			1,633,910			1,637,657			1,608,351			1,639,834			1,668,405			1,629,096
Time	960,424			953,423			932,877			947,436			1,011,290			956,943			1,032,775
Total interest-bearing deposits	3,832,295			3,695,177			3,720,809			3,654,311			3,792,891			3,764,115			3,789,167
Noninterest-bearing	1,110,697			1,096,509			1,129,097			1,072,259			1,063,102			1,103,642			1,056,559
Total deposits	4,942,992			4,791,686			4,849,906			4,726,570			4,855,993			4,867,757			4,845,726
Federal funds purchased and securities sold
under agreements to repurchase	123,682			110,533			107,738			114,505			105,299			117,144			119,923
FHLB short-term borrowings	562,466			671,579			414,892			483,937			464,630			616,721			495,085
Total short-term borrowings	686,148			782,112			522,630			598,442			569,929			733,865			615,008
Long-term debt	59,842			60,367			60,892			69,264			74,129			60,103			74,433
Total borrowed funds	745,990			842,479			583,522			667,706			644,058			793,968			689,441
Accrued interest and other liabilities	68,661			80,738			99,480			106,288			106,747			74,666			109,118
Total Liabilities	5,757,643			5,714,903			5,532,908			5,500,564			5,606,798			5,736,391			5,644,285
SHAREHOLDERS' EQUITY
Common stock	573,716			575,828			577,851			576,953			576,391			574,766			577,416
Retained earnings	332,944			324,875			337,034			329,518			329,795			328,932			330,334
Accumulated other comprehensive loss	(25,189		)	(29,251		)	(28,380		)	(28,232		)	(19,204		)	(27,209		)	(19,389		)
Treasury stock, at cost	(184,862		)	(187,120		)	(186,442		)	(185,081		)	(183,178		)	(185,985		)	(182,042		)
Total Shareholders' Equity	696,609			684,332			700,063			693,158			703,804			690,504			706,319
Total Liabilities and Shareholders' Equity	$	6,454,252		$	6,399,235		$	6,232,971		$	6,193,722		$	6,310,602		$	6,426,895		$	6,350,604

7

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
	Quarterly Averages															Year-to-Date Averages
	Jun. 30, 2014					Mar. 31, 2014					Jun. 30, 2013					Jun. 30, 2014					Jun. 30, 2013
	Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield		Balance			Yield
Earning assets
Investments:
Investment securities	$	1,811,175		2.47	%	$	1,807,571		2.52	%	$	1,705,219		2.08	%	$	1,809,383		2.50	%	$	1,771,632		2.03	%
Interest-bearing deposits with other banks	10,697			0.45	%	2,922			1.39	%	13,890			0.32	%	6,831			0.65	%	8,503			0.36	%
Gross loans (2)	4,059,061			4.70	%	4,010,637			4.83	%	4,072,606			5.26	%	4,034,983			4.76	%	4,059,362			5.37	%
Total earning assets	5,880,933			4.01	%	5,821,130			4.11	%	5,791,715			4.32	%	5,851,197			4.06	%	5,839,497			4.35	%
Nonearning assets
Allowance for loan and lease losses	(55,149		)			(61,902		)			(92,033		)			(58,507		)			(93,763		)
Cash and due from banks	118,947					123,583					119,909					121,252					115,777
Accrued interest and other assets	509,521					516,424					491,011					512,953					489,093
Total assets	$	6,454,252				$	6,399,235				$	6,310,602				$	6,426,895				$	6,350,604
Interest-bearing liabilities
Deposits:
Interest-bearing demand	$	1,169,350		0.11	%	$	1,107,844		0.12	%	$	1,141,767		0.09	%	$	1,138,767		0.11	%	$	1,127,296		0.10	%
Savings	1,702,521			0.23	%	1,633,910			0.20	%	1,639,834			0.10	%	1,668,405			0.21	%	1,629,096			0.10	%
Time	960,424			0.98	%	953,423			0.94	%	1,011,290			1.04	%	956,943			0.96	%	1,032,775			1.12	%
Total interest-bearing deposits	3,832,295			0.38	%	3,695,177			0.36	%	3,792,891			0.35	%	3,764,115			0.37	%	3,789,167			0.38	%
Borrowed funds
Short-term borrowings	686,148			0.17	%	782,112			0.17	%	569,929			0.21	%	733,865			0.17	%	615,008			0.21	%
Long-term debt	59,842			3.52	%	60,367			3.52	%	74,129			3.54	%	60,103			3.52	%	74,433			3.54	%
Total borrowed funds	745,990			0.44	%	842,479			0.41	%	644,058			0.60	%	793,968			0.42	%	689,441			0.57	%
Total interest-bearing liabilities	4,578,285			0.39	%	4,537,656			0.37	%	4,436,949			0.38	%	4,558,083			0.38	%	4,478,608			0.41	%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits	1,110,697					1,096,509					1,063,102					1,103,642					1,056,559
Other liabilities	68,661					80,738					106,747					74,666					109,118
Shareholders' equity	696,609					684,332					703,804					690,504					706,319
Total liabilities & shareholders' equity	$	6,454,252				$	6,399,235				$	6,310,602				$	6,426,895				$	6,350,604
Net interest income (1)	$	54,304				$	54,819				$	58,078				$	109,123				$	116,744
Net interest spread (1)				3.62	%				3.74	%				3.94	%				3.68	%				3.94	%
Net interest margin (1)				3.70	%				3.82	%				4.02	%				3.76	%				4.03	%
(1) Not tax equivalent.
(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

8

FIRST FINANCIAL BANCORP.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)
(Dollars in thousands)
(Unaudited)
	Linked Qtr. Income Variance									Comparable Qtr. Income Variance									Year-to-Date Income Variance
	Rate			Volume			Total			Rate			Volume			Total			Rate			Volume			Total
Earning assets
Investment securities	$	(240	)	$	144		$	(96	)	$	1,644		$	652		$	2,296		$	4,120		$	467		$	4,587
Interest-bearing deposits with other banks	(7		)	9			2			5			(4		)	1			12			(5		)	7
Gross loans (2)	(1,251		)	1,084			(167		)	(5,732		)	(159		)	(5,891		)	(12,133		)	(576		)	(12,709		)
Total earning assets	(1,498		)	1,237			(261		)	(4,083		)	489			(3,594		)	(8,001		)	(114		)	(8,115		)
Interest-bearing liabilities
Total interest-bearing deposits	$	123		$	167		$	290		$	285		$	37		$	322		$	(176	)	$	(46	)	$	(222	)
Borrowed funds
Short-term borrowings	0			(37		)	(37		)	(62		)	49			(13		)	(114		)	101			(13		)
Long-term debt	0			1			1			(4		)	(125		)	(129		)	(9		)	(250		)	(259		)
Total borrowed funds	0			(36		)	(36		)	(66		)	(76		)	(142		)	(123		)	(149		)	(272		)
Total interest-bearing liabilities	123			131			254			219			(39		)	180			(299		)	(195		)	(494		)
Net interest income (1)	$	(1,621	)	$	1,106		$	(515	)	$	(4,302	)	$	528		$	(3,774	)	$	(7,702	)	$	81		$	(7,621	)
(1) Not tax equivalent.
(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

9

FIRST FINANCIAL BANCORP.
CREDIT QUALITY
(excluding covered assets)
(Dollars in thousands)
(Unaudited)
																Six months ended,
	Jun. 30,			Mar 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
	2014			2014			2013			2013			2013			2014			2013
ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY
Balance at beginning of period	$	43,023		$	43,829		$	45,514		$	47,047		$	48,306		$	43,829		$	47,777
Provision for uncovered loan and lease losses	29			1,159			1,851			1,413			2,409			1,188			5,450
Gross charge-offs
Commercial	571			656			293			1,482			859			1,227			1,640
Real estate - construction	0			0			1			0			0			0			0
Real estate - commercial	699			543			3,113			2,174			2,044			1,242			3,039
Real estate - residential	283			257			218			249			326			540			549
Installment	14			128			39			99			97			142			197
Home equity	383			544			706			411			591			927			1,292
Other	237			296			398			696			277			533			687
Total gross charge-offs	2,187			2,424			4,768			5,111			4,194			4,611			7,404
Recoveries
Commercial	580			39			194			92			67			619			386
Real estate - construction	0			0			46			490			0			0			136
Real estate - commercial	334			114			634			1,264			57			448			96
Real estate - residential	100			27			96			98			5			127			9
Installment	50			77			66			57			110			127			187
Home equity	37			103			136			95			225			140			277
Other	61			99			60			69			62			160			133
Total recoveries	1,162			459			1,232			2,165			526			1,621			1,224
Total net charge-offs	1,025			1,965			3,536			2,946			3,668			2,990			6,180
Ending allowance for uncovered loan and lease losses	$	42,027		$	43,023		$	43,829		$	45,514		$	47,047		$	42,027		$	47,047
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)
Commercial	0.00		%	0.24		%	0.04		%	0.59		%	0.35		%	0.11		%	0.29		%
Real estate - construction	0.00		%	0.00		%	(0.23		)%	(2.09		)%	0.00		%	0.00		%	(0.31		)%
Real estate - commercial	0.10		%	0.12		%	0.66		%	0.24		%	0.55		%	0.11		%	0.42		%
Real estate - residential	0.20		%	0.26		%	0.14		%	0.17		%	0.38		%	0.23		%	0.33		%
Installment	(0.33		)%	0.45		%	(0.22		)%	0.33		%	(0.10		)%	0.07		%	0.04		%
Home equity	0.37		%	0.48		%	0.60		%	0.34		%	0.40		%	0.42		%	0.56		%
Other	0.61		%	0.70		%	1.20		%	2.27		%	0.90		%	0.65		%	1.24		%
Total net charge-offs	0.11		%	0.23		%	0.41		%	0.34		%	0.45		%	0.17		%	0.38		%
COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS
Nonaccrual loans (1)
Commercial	$	7,077		$	7,097		$	7,934		$	8,554		$	12,925		$	7,077		$	12,925
Real estate - construction	223			223			223			1,099			1,104			223			1,104
Real estate - commercial	15,288			16,758			17,286			35,549			35,055			15,288			35,055
Real estate - residential	6,806			8,157			8,606			9,346			9,369			6,806			9,369
Installment	459			399			574			421			249			459			249
Home equity	2,565			2,700			2,982			2,871			2,813			2,565			2,813
Lease financing	0			0			0			86			496			0			496
Nonaccrual loans	32,418			35,334			37,605			57,926			62,011			32,418			62,011
Accruing troubled debt restructurings (TDRs)	12,607			13,400			15,094			16,278			12,924			12,607			12,924
Total nonperforming loans	45,025			48,734			52,699			74,204			74,935			45,025			74,935
Other real estate owned (OREO)	13,370			12,743			19,806			11,804			11,798			13,370			11,798
Total nonperforming assets	58,395			61,477			72,505			86,008			86,733			58,395			86,733
Accruing loans past due 90 days or more	256			208			218			265			158			256			158
Total underperforming assets	$	58,651		$	61,685		$	72,723		$	86,273		$	86,891		$	58,651		$	86,891
Total classified assets	$	103,799		$	103,471		$	110,509		$	120,423		$	129,832		$	103,799		$129,832
CREDIT QUALITY RATIOS (excluding covered assets)
Allowance for loan and lease losses to
Nonaccrual loans	129.64		%	121.76		%	116.55		%	78.57		%	75.87		%	129.64		%	75.87		%
Nonperforming loans	93.34		%	88.28		%	83.17		%	61.34		%	62.78		%	93.34		%	62.78		%
Total ending loans	1.15		%	1.19		%	1.25		%	1.33		%	1.39		%	1.15		%	1.39		%
Nonperforming loans to total loans	1.23		%	1.35		%	1.50		%	2.16		%	2.22		%	1.23		%	2.22		%
Nonperforming assets to
Ending loans, plus OREO	1.59		%	1.70		%	2.06		%	2.50		%	2.56		%	1.59		%	2.56		%
Total assets	0.89		%	0.95		%	1.13		%	1.38		%	1.38		%	0.89		%	1.38		%
Nonperforming assets, excluding accruing TDRs to
Ending loans, plus OREO	1.25		%	1.33		%	1.63		%	2.03		%	2.17		%	1.25		%	2.17		%
Total assets	0.70		%	0.74		%	0.89		%	1.12		%	1.18		%	0.70		%	1.18		%
(1) Nonaccrual loans include nonaccrual TDRs of $11.0 million, $14.6 million, $13.0 million, $13.0 million, and $19.9 million, as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013, and June 30, 2013, respectively.

10

FIRST FINANCIAL BANCORP.
CAPITAL ADEQUACY
(Dollars in thousands, except per share data)
(Unaudited)
																Six months ended,
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
	2014			2014			2013			2013			2013			2014			2013
PER COMMON SHARE
Market Price
High	$	18.43		$	18.20		$	17.59		$	16.47		$	16.05		$	18.43		$	16.07
Low	$	15.51		$	15.98		$	14.56		$	14.89		$	14.52		$	15.51		$	14.46
Close	$	17.21		$	17.98		$	17.43		$	15.17		$	14.90		$	17.21		$	14.90
Average shares outstanding - basic	57,201,494			57,091,604			57,152,425			57,201,390			57,291,994			57,146,853			57,365,105
Average shares outstanding - diluted	57,951,636			57,828,179			57,863,433			58,012,588			58,128,349			57,890,268			58,206,503
Ending shares outstanding	57,718,317			57,709,937			57,533,046			57,702,444			57,698,344			57,718,317			57,698,344
REGULATORY CAPITAL	Preliminary															Preliminary
Tier 1 Capital	$	640,237		$	631,099		$	624,850		$	631,846		$	630,819		$	640,237		$	630,819
Tier 1 Ratio	14.34		%	14.42		%	14.61		%	15.26		%	15.41		%	14.34		%	15.41		%
Total Capital	$	696,014		$	685,926		$	679,074		$	684,363		$	682,927		$	696,014		$	682,927
Total Capital Ratio	15.59		%	15.67		%	15.88		%	16.53		%	16.68		%	15.59		%	16.68		%
Total Capital in excess of minimum
requirement	$	338,848		$	335,806		$	336,982		$	353,118		$	355,435		$	338,848		$	355,435
Total Risk-Weighted Assets	$	4,464,578		$	4,376,505		$	4,276,152		$	4,140,561		$	4,093,644		$	4,464,578		$	4,093,644
Leverage Ratio	9.99		%	9.94		%	10.11		%	10.29		%	10.12		%	9.99		%	10.12		%
OTHER CAPITAL RATIOS
Ending shareholders' equity to ending assets	10.78		%	10.64		%	10.63		%	11.07		%	11.08		%	10.78		%	11.08		%
Ending tangible shareholders' equity to ending tangible assets	9.39		%	9.23		%	9.20		%	9.60		%	9.62		%	9.39		%	9.62		%
Average shareholders' equity to average assets	10.79		%	10.69		%	11.23		%	11.19		%	11.15		%	10.74		%	11.12		%
Average tangible shareholders' equity to average tangible assets	9.38		%	9.27		%	9.77		%	9.71		%	9.70		%	9.33		%	9.68		%
REPURCHASE PROGRAM (1)
Shares repurchased	0			40,255			209,745			0			291,400			40,255			540,400
Average share repurchase price	N/A			$	17.32		$	16.39		N/A			$15.47			$	17.32		$15.43
Total cost of shares repurchased	N/A			$	697		$	3,438		N/A			$4,508			$	697		$8,339
(1) Represents share repurchases as part of publicly announced plans.
N/A=Not applicable

11

SUPPLEMENTAL INFORMATION ON COVERED ASSETS

ACCELERATED DISCOUNT ON LOAN PREPAYMENTS AND DISPOSITIONS

During the second quarter, First Financial recognized approximately $0.6 million in accelerated discount on covered loans, net of the related adjustment on the FDIC indemnification asset. Accelerated discount is recognized when covered loans, which are recorded on the Company’s balance sheet at an amount less than the unpaid principal balance, prepay at an amount greater than their recorded book value. Prepayments can occur through either customer payments before the maturity date or loan sales. The amount of discount attributable to the credit loss component of each loan varies and the recognized amount is offset by a related reduction in the FDIC indemnification asset.

NET INTEREST MARGIN IMPACT

Net interest margin is affected by certain activity related to the covered loan portfolio. The majority of these loans are accounted for under FASB ASC Topic 310-30 and, as such, the Company is required to periodically update its forecast of expected cash flows from these loans. Impairment, as a result of a decrease in expected cash flows, is recognized as provision expense in the period it is measured and has no impact on net interest margin. Improvements in expected cash flows, in excess of any prior impairment, are recognized on a prospective basis through an upward adjustment to the yield earned on the portfolio. Impairment and improvement are both partially offset by the impact of changes in the value of the FDIC indemnification asset. Impairment is partially offset by an increase to the FDIC indemnification asset as a result of FDIC loss sharing income. Improvement, which is reflected as a higher yield, is partially offset by a lower yield earned on the FDIC indemnification asset until the next periodic valuation of the loans and the indemnification asset. The weighted average yield of the acquired loan portfolio may also be subject to change as loans with higher yields pay down more quickly or slowly than loans with lower yields.

The following table shows the estimated yield earned by the Company on its covered and uncovered loan portfolios and the FDIC indemnification asset for the three months ended June 30, 2014.

Table VII
	For the Three Months Ended June 30, 2014
	Average
(Dollars in thousands)	Balance		Yield
Loans, excluding covered loans 1	$	3,637,458	4.26%
Covered loan portfolio accounted for under ASC Topic 310-30 2	333,612		10.20%
Covered loan portfolio accounted for under ASC Topic 310-20 3	54,004		13.26%
FDIC indemnification asset 2	33,987		(15.49)%
Total	$	4,059,061	4.70%
Yield earned on total covered loans			10.63%
Yield earned on total covered loans and FDIC indemnification asset			8.52%
1 Includes loans with loss share coverage removed
2  Future yield adjustments subject to change based on required, periodic valuation procedures
3  Includes loans with revolving privileges which are scoped out of ASC Topic 310-30 and certain loans which the
Company elected to treat under the cost recovery method of accounting

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COVERED ASSETS

The following table presents the covered loan portfolio as of June 30, 2014, March 31, 2014 and June 30, 2013.

Table VIII
	As of
	June 30, 2014				March 31, 2014				June 30, 2013
			Percent				Percent				Percent
(Dollars in thousands)	Balance		of Total		Balance		of Total		Balance		of Total
Commercial	$	27,488	7.5	%	$	34,385	8.4	%	$	69,562	11.2	%
Real estate - construction	2,021		0.6	%	8,480		2.1	%	9,647		1.6	%
Real estate - commercial	208,338		57.0	%	234,797		57.4	%	389,282		62.6	%
Real estate - residential	74,960		20.5	%	77,768		19.0	%	90,707		14.6	%
Installment	4,415		1.2	%	5,106		1.2	%	7,057		1.1	%
Home equity	46,100		12.6	%	46,319		11.3	%	53,214		8.6	%
Other	2,281		0.6	%	2,550		0.6	%	2,796		0.4	%
Total	$	365,603	100.0	%	$	409,405	100.0	%	$	622,265	100.0	%

As of June 30, 2014, 9.1% of the Company’s total loans were covered loans. During the second quarter, the total balance of covered loans decreased $43.8 million, or 10.7%, compared to the prior quarter. Included in the decrease in covered loan balances during the second quarter was a $21.2 million, or 24.4%, decline in the balance of covered loans classified as likely to exit resulting from the continued successful execution of resolution strategies.

Covered OREO decreased $3.6 million, or 15.7%, during the second quarter to $19.4 million as of June 30, 2014, as additions of $3.5 million were offset by resolutions and valuation adjustments of $7.1 million. The Company recognized a net loss on sales of covered OREO of $0.4 million during the quarter, which was offset by a corresponding increase in FDIC loss sharing income of approximately 80% of the net loss recognized.

As required under the loss sharing agreements, First Financial must file quarterly certifications with the FDIC on all covered loans. The payment of claims is subject to the FDIC’s review for compliance with the loss sharing agreements and to date, all certifications have been filed in a timely manner and without significant issues. The Company’s loss sharing agreements with the FDIC related to non-single-family loans expire during the third quarter 2014, while the agreements related to single-family loans expire in the third quarter 2019.

ALLOWANCE FOR LOAN AND LEASE LOSSES - COVERED

Under the applicable accounting guidance, the allowance for loan losses related to covered loans is a result of impairment identified in ongoing valuation procedures and is generally recognized in the current period as provision expense. However, if improvement is noted in a loan pool that had previously experienced impairment, the amount of improvement is recognized as a reduction to the applicable period’s provision expense. Additional improvement beyond previously recorded impairment is reflected as a yield adjustment on a prospective basis. The timing inherent in this accounting treatment may result in earnings volatility in future periods.

13

The following table presents activity in the allowance for loan losses related to covered loans for the three months ended June 30, 2014 and for the trailing three quarters.

Table IX
	As of or for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2014			2014			2013			2013
Balance at beginning of period	$	10,573		$	18,901		$	23,259		$	32,961
Provision for loan and lease losses - covered	(413		)	(2,192		)	(5,857		)	5,293
Total gross charge-offs	(3,485		)	(7,240		)	(3,850		)	(21,009		)
Total recoveries	5,750			1,104			5,349			6,014
Total net (charge-offs) / recoveries	2,265			(6,136		)	1,499			(14,995		)
Ending allowance for loan and lease losses - covered	$	12,425		$	10,573		$	18,901		$	23,259

As a percentage of total covered loans, the allowance for loan losses totaled 3.40% as of June 30, 2014 compared to 2.58% as of March 31, 2014.

Net recoveries on covered loans during the second quarter were $2.3 million compared to net charge-offs of $6.1 million for the first quarter 2014. During the second quarter, the Company recognized negative provision expense of $0.4 million compared to negative provision expense of $2.2 million for the linked quarter. The difference between provision expense and net charge-offs / recoveries primarily relates to the quarterly re-estimation of cash flow expectations required under FASB ASC Topic 310-30.

In addition to the provision expense, the Company incurred loss sharing and covered asset expenses of $1.9 million, consisting primarily of credit and collection-related expenses as well as losses on the disposition of covered OREO. The FDIC loss sharing income of $1.1 million for the quarter represents the corresponding offset to provision expense, loss sharing and covered asset expenses for reimbursements due from the FDIC under loss sharing agreements.

14