11-K 1 l94950ae11vk.txt FIRST FINANCIAL BANCORP 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 11-K {X} ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2001 OR { } TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 0-12379 ------- FIRST FINANCIAL BANCORP THRIFT PLAN AND TRUST 300 HIGH ST. HAMILTON, OH 45011 First Financial Bancorp 300 High St. Hamilton, OH 45011 FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES First Financial Bancorp Thrift Plan and Trust Years ended December 31, 2001 and 2000 with Report of Independent Auditors First Financial Bancorp Thrift Plan and Trust Financial Statements and Supplemental Schedules Years ended December 31, 2001 and 2000 TABLE OF CONTENTS Report of Independent Auditors ...........................................1 Financial Statements Statements of Net Assets Available for Benefits ..........................2 Statements of Changes in Net Assets Available for Benefits ...............4 Notes to Financial Statements ............................................6 Supplemental Schedules Schedule of Assets (Held at End of Year) ................................13 Schedule of Reportable Transactions .....................................14 .. REPORT OF INDEPENDENT AUDITORS Thrift Plan and Trust Administrative Committee First Financial Bancorp We have audited the accompanying statements of net assets available for benefits of the First Financial Bancorp Thrift Plan and Trust as of December 31, 2001 and 2000, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the First Financial Bancorp Thrift Plan and Trust at December 31, 2001 and 2000, and changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States. Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held as of December 31, 2001, and reportable transactions for the year then ended, are presented for the purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. The Fund Information in the statement of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. /s/ Ernst & Young LLP June 19, 2002
First Financial Bancorp Thrift Plan and Trust Statement of Net Assets Available for Benefits, with Fund Information December 31, 2001 FUND INFORMATION ---------------------------------------------------------------------------------------- FIRST FINANCIAL BANCORP FIXED COMMON SAVINGS INCOME BALANCED EQUITY STOCK INTERNATIONAL FUND FUND FUND FUND FUND FUND ---------------------------------------------------------------------------------------- ASSETS Investments -- at fair value: Goldman Sachs Prime Corporate Money Fund $ 2,776,965 $ 63,317 $ 36,535 $ 88,601 $ 150,624 $ 29,291 Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- 1,924,162 1,089,689 -- -- -- Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- -- 1,698,541 5,220,778 -- -- First Financial Bancorp common stock -- -- -- -- 23,249,409 -- Manager International Equity Fund -- -- -- -- -- 150,525 T Rowe Price International Stock Fund -- -- -- -- -- 143,201 Templeton Foreign Fund-Class A -- -- -- -- -- 184,176 Vanguard 500 Index Fund -- -- -- -- -- -- Neuberger and Berman Genesis Fund -- -- -- -- -- -- Liberty Acorn Class Z -- -- -- -- -- -- T Rowe Price New Horizons Fd -- -- -- -- -- -- ---------------------------------------------------------------------------------------- Total investments 2,776,965 1,987,479 2,824,765 5,309,379 23,400,033 507,193 Receivables: Interest and dividends 5,740 128 58 101 197,438 29 ---------------------------------------------------------------------------------------- Total Receivables 5,740 128 58 101 197,438 29 Cash -- -- -- 40 154 50 ---------------------------------------------------------------------------------------- Net assets available for benefits $ 2,782,705 $ 1,987,607 $ 2,824,823 $ 5,309,520 $23,597,625 $ 507,272 ======================================================================================== FUND INFORMATION ----------------------------------------------------- VANGUARD SMALL 500 INDEX CAP 2001 FUND FUND TOTAL ------------------------------------------------------ ASSETS Investments -- at fair value: Goldman Sachs Prime Corporate Money Fund $ 75,442 $ 69,688 $ 3,290,463 Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- -- 3,013,851 Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- -- 6,919,319 First Financial Bancorp common stock -- -- 23,249,409 Manager International Equity Fund -- -- 150,525 T Rowe Price International Stock Fund -- -- 143,201 Templeton Foreign Fund-Class A -- -- 184,176 Vanguard 500 Index Fund 2,665,985 -- 2,665,985 Neuberger and Berman Genesis Fund -- 271,089 271,089 Liberty Acorn Class Z -- 262,725 262,725 T Rowe Price New Horizons Fd -- 266,694 266,694 ------------------------------------------------------ Total investments 2,741,427 870,196 40,417,437 Receivables: Interest and dividends 9,760 54 213,308 ------------------------------------------------------ Total Receivables 9,760 54 213,308 Cash 121 81 446 ------------------------------------------------------ Net assets available for benefits $ 2,751,308 $ 870,331 $40,631,191 ======================================================
2 See accompanying notes.
First Financial Bancorp Thrift Plan and Trust Statement of Net Assets Available for Benefits, with Fund Information December 31, 2000 FUND INFORMATION -------------------------------------------------------------------------- FIRST FINANCIAL BANCORP FIXED COMMON SAVINGS INCOME BALANCED EQUITY STOCK FUND FUND FUND FUND FUND ------------------------------------------------------------------------------- ASSETS Investments -- at fair value: Goldman Sachs Prime Corporate Money Fund $ 2,891,212 $ 7,913 $ 6,026 $ 27,551 $ 110,688 Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- 1,906,727 1,320,471 -- -- Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- -- 1,855,481 6,413,861 -- First Financial Bancorp common stock -- -- -- -- 22,364,894 Manager International Equity Fund -- -- -- -- -- T Rowe Price International Stock Fund -- -- -- -- -- Templeton Foreign Fund-Class A -- -- -- -- -- Vanguard 500 Index Fund -- -- -- -- -- Accessor Small Mid-Cap Fund -- -- -- -- -- Liberty Acorn Class Z -- -- -- -- -- T Rowe Price New Horizons Fd -- -- -- -- -- ------------------------------------------------------------------------------- Total investments 2,891,212 1,914,640 3,181,978 6,441,412 22,475,582 Receivables: Interest and dividends 15,915 46 51 165 197,879 ------------------------------------------------------------------------------- Total Receivables 15,915 46 51 165 197,879 Cash (1,815) -- (2,017) -- (9,281) ------------------------------------------------------------------------------- Net assets available for benefits $ 2,905,312 $ 1,914,686 $ 3,180,012 $ 6,441,577 $ 22,664,180 =============================================================================== FUND INFORMATION ---------------------------------------------------------------------- VANGUARD SMALL INTERNATIONAL 500 INDEX CAP 2000 FUND FUND FUND TOTAL ---------------------------------------------------------------------- ASSETS Investments -- at fair value: Goldman Sachs Prime Corporate Money Fund $ 37,495 $ 13,657 $ 46,582 $ 3,141,124 Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- -- -- 3,227,198 Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio -- -- -- 8,269,342 First Financial Bancorp common stock -- -- -- 22,364,894 Manager International Equity Fund 167,231 -- -- 167,231 T Rowe Price International Stock Fund 148,833 -- -- 148,833 Templeton Foreign Fund-Class A 187,689 -- -- 187,689 Vanguard 500 Index Fund -- 2,995,680 -- 2,995,680 Accessor Small Mid-Cap Fund -- -- 278,397 278,397 Liberty Acorn Class Z -- -- 348,358 348,358 T Rowe Price New Horizons Fd -- -- 293,189 293,189 ---------------------------------------------------------------------- Total investments 541,248 3,009,337 966,526 41,421,935 Receivables: Interest and dividends 95 77 161 214,389 ---------------------------------------------------------------------- Total Receivables 95 77 161 214,389 Cash (77) (599) (244) (14,033) ---------------------------------------------------------------------- Net assets available for benefits $ 541,266 $ 3,008,815 $ 966,443 $ 41,622,291 ======================================================================
See accompanying notes. 3
First Financial Bancorp Thrift Plan and Trust Statement of Changes in Net Assets Available for Benefits, with Fund Information December 31, 2001 FUND INFORMATION ---------------------------------------------------------------------------------------------- FIRST FINANCIAL BANCORP FIXED COMMON SAVINGS INCOME BALANCED EQUITY STOCK INTERNATIONAL FUND FUND FUND FUND FUND FUND ---------------------------------------------------------------------------------------------- Investment income: Net appreciation (depreciation) in fair value of investments $ -- $ 157,621 $ 20,634 $ (290,746) $ 1,879,019 $ (106,696) Dividends -- -- -- -- 792,099 9,812 Interest 112,146 2,410 1,518 3,315 5,034 581 ---------------------------------------------------------------------------------------------- Total investment income 112,146 160,031 22,152 (287,431) 2,676,152 (96,303) Employer contributions -- -- -- -- 908,461 -- Participant contributions 125,334 121,023 280,979 470,626 685,825 83,055 Transfers from merged plans -- Transfers from previous plans of new employeees 4,820 5,519 7,274 41,877 6,349 13,053 Service fee (75) -- -- (75) (3,753) -- Capital gain -- -- -- -- -- 391 Benefits payments (1,054,640) (162,950) (735,784) (1,021,942) (3,007,886) (45,293) ---------------------------------------------------------------------------------------------- Net increase (decrease) prior to interfund transfers (812,415) 123,623 (425,379) (796,945) 1,265,148 (45,097) Interfund transfers 689,808 (50,702) 70,190 (335,112) (331,703) 11,103 ---------------------------------------------------------------------------------------------- Net increase (decrease) in net assets available for benefits (122,607) 72,921 (355,189) (1,132,057) 933,445 (33,994) Net assets available for benefits at beginning of year 2,905,312 1,914,686 3,180,012 6,441,577 22,664,180 541,266 ---------------------------------------------------------------------------------------------- Net assets available for benefits at end of year $ 2,782,705 $ 1,987,607 $ 2,824,823 $ 5,309,520 $ 23,597,625 $ 507,272 ============================================================================================== FUND INFORMATION ---------------------------------------------------- VANGUARD SMALL 500 INDEX CAP 2001 FUND FUND TOTAL ----------------------------------------------------- Investment income: Net appreciation (depreciation) in fair value of investments $ (389,695) $ (30,027) $ 1,240,110 Dividends 21,818 678 824,407 Interest 10,948 1,123 137,075 ----------------------------------------------------- Total investment income (356,929) (28,226) 2,201,592 Employer contributions -- -- 908,461 Participant contributions 430,729 161,425 2,358,996 Transfers from merged plans Transfers from previous plans of new employeees 39,299 38,097 156,288 Service fee (1,416) (22) (5,341) Capital gain -- 20,745 21,136 Benefits payments (387,425) (216,312) (6,632,232) ----------------------------------------------------- Net increase (decrease) prior to interfund transfers (275,742) (24,293) (991,100) Interfund transfers 18,235 (71,819) -- ----------------------------------------------------- Net increase (decrease) in net assets available for benefits (257,507) (96,112) (991,100) Net assets available for benefits at beginning of year 3,008,815 966,443 41,622,291 ----------------------------------------------------- Net assets available for benefits at end of year $ 2,751,308 $ 870,331 $ 40,631,191 =====================================================
See accompanying notes. 4
First Financial Bancorp Thrift Plan and Trust Statement of Changes in Net Assets Available for Benefits, with Fund Information December 31, 2000 FUND INFORMATION -------------------------------------------------------------------------------------------- FIRST FINANCIAL BANCORP FIXED COMMON SAVINGS INCOME BALANCED EQUITY STOCK INTERNATIONAL FUND FUND FUND FUND FUND FUND -------------------------------------------------------------------------------------------- Investment income: Net appreciation (depreciation) in fair value of investments $ -- $ 180,924 $ 152,335 $ 208,563 $ (6,162,758) $ (33,209) Dividends -- -- -- -- 1,507,248 5,746 Interest 248,945 2,601 8,196 7,339 8,602 1,431 -------------------------------------------------------------------------------------------- Total investment income 248,945 183,525 160,531 215,902 (4,646,908) (26,032) Employer contributions -- -- -- -- 878,145 -- Participant contributions 92,216 67,660 281,220 493,350 843,628 61,878 Transfers from merged plans 1,637,665 229,370 1,757,372 1,364,265 90,264 393,970 Transfers from previous plans of new employeees -- 1,267 131 1,530 2,095 1,188 Service fee -- -- -- -- (2,353) -- Benefits payments (1,339,700) (104,025) (371,037) (806,575) (3,093,425) (15,009) -------------------------------------------------------------------------------------------- Net increase (decrease) prior to interfund transfers 639,126 377,797 1,828,217 1,268,472 (5,928,554) 415,995 Interfund transfers (42,179) 562,639 (86,399) (402,172) (1,805,840) 125,271 -------------------------------------------------------------------------------------------- Net increase (decrease) in net assets available for benefits 596,947 940,436 1,741,818 866,300 (7,734,394) 541,266 Net assets available for benefits at beginning of year 2,308,365 974,250 1,438,194 5,575,277 30,398,574 -- -------------------------------------------------------------------------------------------- Net assets available for benefits at end of year $ 2,905,312 $ 1,914,686 $ 3,180,012 $ 6,441,577 $ 22,664,180 $ 541,266 ============================================================================================ FUND INFORMATION -------------------------------------------------- VANGUARD SMALL 500 INDEX CAP 2000 FUND FUND TOTAL --------------------------------------------------- Investment income: Net appreciation (depreciation) in fair value of investments $ (252,820) $ (77,142) $ (5,984,107) Dividends 29,046 1,712 1,543,752 Interest 6,598 2,346 286,058 -------------------------------------------------- Total investment income (217,176) (73,084) (4,154,297) Employer contributions -- -- 878,145 Participant contributions 335,226 87,918 2,263,096 Transfers from merged plans 1,884,912 578,678 7,936,496 Transfers from previous plans of new employeees 8,969 8,574 23,754 Service fee -- -- (2,353) Benefits payments (255,602) (31,837) (6,017,210) -------------------------------------------------- Net increase (decrease) prior to interfund transfers 1,756,329 570,249 927,631 Interfund transfers 1,252,486 396,194 -- -------------------------------------------------- Net increase (decrease) in net assets available for benefits 3,008,815 966,443 927,631 Net assets available for benefits at beginning of year -- -- 40,694,660 -------------------------------------------------- Net assets available for benefits at end of year $ 3,008,815 $ 966,443 $ 41,622,291 ==================================================
See accompanying notes. 5 First Financial Bancorp Thrift Plan and Trust Notes to Financial Statements December 31, 2001 1. DESCRIPTION OF THE PLAN The following brief description of the First Financial Bancorp Thrift Plan and Trust (the Plan) is provided for general information purposes only. Participants should refer to the summary plan description for more information. First Financial Bancorp (Bancorp) is the sponsor of the Plan. GENERAL The Plan is a defined-contribution plan, qualified under Section 401 of the Internal Revenue Code and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan covers substantially all employees of First Financial Bancorp (Plan Sponsor) and affiliates who have attained at least one year of service and are age twenty-one or older. The Plan is subject to the provisions of Section 401(k) of the Internal Revenue Code whereby the participants' discretionary contributions would not be reportable as compensation for federal and state income tax purposes. The Plan is a single plan of a controlled group as defined in Code Sections 414(b) and 414(c). FUNDING Employer contributions to the Plan are equal to 50 percent of the employee's contribution limited to three (3) percent of the employee's base salary. Employer contributions are invested in the First Financial Bancorp Common Stock Fund and are fully vested upon contribution to the Plan. Although the sponsor has not expressed any intention to do so, it has the right under the Plan to discontinue contributions at any time and terminate the Plan, subject to provisions set forth in ERISA. Participants may elect to make contributions to the Plan of up to 12 percent of their eligible salary on a before-tax basis. Prior to February 1, 1986, participants were permitted to contribute certain amounts on an after-tax basis. All contributions are fully vested when made and can be made to any of the investment options. 6 First Financial Bancorp Thrift Plan and Trust Notes to Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) PARTICIPATING CORPORATIONS The terms of the Plan provide that any corporation, which is or becomes a subsidiary of Bancorp may, with consent of Bancorp, adopt this plan for those employees which the subsidiary determines shall be eligible. Effective January 1, 2000, the Plan was amended to admit the employees of Sand Ridge Bank and Hebron Deposit Bank, both wholly-owned subsidiaries of Bancorp. BENEFIT PAYMENTS Participants who have withdrawn all of their after-tax contributions may elect to withdraw employer contributions and the earnings of their accounts. Employer contributions withdrawn are limited to those made more than eight plan quarters prior to the quarter in which the withdrawal is being made. Such a withdrawal suspends the participant's right to make contributions for one year. Active employees under 59-1/2 years of age may withdraw before-tax savings only if the participant can prove "financial hardship" as defined by the Internal Revenue Service. If a participant is an active employee over 59-1/2 years of age, he or she may withdraw any amount of before-tax savings for any reason. Any distribution of before-tax funds results in a one-year suspension of participation in the Plan. Withdrawal of funds must be made in the following sequences: after-tax contributions; earnings on participants' after-tax contributions; employer contributions; and before-tax contributions. PARTICIPANTS' ACCOUNTS Earnings are allocated on beginning account balances less any withdrawals during the quarter. A participant may elect to withdraw all or any part of his or her after-tax savings from the Plan. Such withdrawal suspends the participant's rights to make future contributions for six months. 7 First Financial Bancorp Thrift Plan and Trust Notes to Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) PARTICIPANTS' ACCOUNTS (CONTINUED) Employee contributions to the Plan may be allocated, in 5 percent increments, among any of the eight available funds, as follows: The Savings Fund invests primarily in the Goldman Sachs Prime Corporate Money Fund, which holds a diversified portfolio of high-grade short-term debt obligations that have minimal credit risk. The fund seeks to maintain a net asset value of $1.00 per unit. The investment objective is to provide income, preserve capital, and provide liquidity. The Fixed Income Fund invests primarily in the Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio, which holds a diversified portfolio of U.S. Government bonds, notes, agencies, and high quality corporate bonds. The fund only purchases bonds with a credit rating of A or better and a short to intermediate term maturity. The objectives of the Fixed Income Fund are to provide a reasonable level of income and stability of capital. The Balanced Fund divides its investments between the Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio and the Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio. The objectives of the Balanced Fund include providing current income, conserving capital, and long-term growth capital. The Balanced Fund's risk is generally considered to be more than the Savings and Fixed Income Funds, but less than the Equity Fund and the First Financial Bancorp Common Stock Fund. The Equity Fund invests in the Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio, which holds a diversified portfolio of common stocks. The investment objective is long-term growth of capital. The First Financial Bancorp Common Stock Fund invests primarily in First Financial Bancorp Common Stock. The investment objective is long-term growth of capital. This fund is generally considered to be the riskiest investment alternative offered because of the absence of diversification. 8 First Financial Bancorp Thrift Plan and Trust Notes to Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) PARTICIPANTS' ACCOUNTS (CONTINUED) The International Fund invests primarily in international mutual funds, which invest in stocks of established and emerging foreign markets. Performances of foreign stocks are closely tided to the economic, political, and environmental condition of a country and region. The Vanguard 500 Index Fund invests primarily in the Vanguard 500 Index, which seeks investment results that correspond with the price and yield performance of the S&P 500 index. Though the fund seeks to match the S&P 500 index, its performance typically can be expected to fall short by a small percentage representing operating costs. The Small Capital Fund invests primarily in small cap mutual funds, which invest in stock of emerging companies whose market value generally is below $2 billion. These stocks tend to be more volatile and may perform differently than large cap stocks. PLAN TERMINATION In the event of termination, the net assets will be distributed to participants and beneficiaries in proportion to their respective account balances, which become 100 percent vested. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. VALUATION OF INVESTMENTS Separate trust accounts at First National Bank of Southwestern Ohio, a wholly-owned subsidiary of Bancorp, are used to hold and invest the Plan's assets. Investments are stated at fair values based on quoted closing market prices obtained by the trustee from published market data. Security transactions are recorded on the trade date. 9 First Financial Bancorp Thrift Plan and Trust Notes to Financial Statements (continued) 3. INVESTMENTS The Plan uses the average cost method for determining the cost of securities sold when determining realized gains and losses. The Plan's investments (including investments bought, sold, and held during the year) appreciated in fair value by $1,240,110 in 2001 and depreciated by $5,984,107 in 2000 as follows:
YEAR ENDED DECEMBER 31, 2001 ---------------------------------------------------------------------------------------- FIRST FINANCIAL FIXED BANCORP VANGUARD INCOME BALANCED EQUITY COMMON INT'L 500 FUND FUND FUND STOCK FUND FUND FUND ----------- ----------- ----------- ----------- ----------- ----------- Unrealized appreciation (depreciation) in fair value of: First Financial Bancorp Common Stock $ -- $ -- $ -- $ 1,098,062 $ -- $ -- Employee Benefit Equity Fund -- (72,215) (294,698) -- -- -- Employee Benefit Fixed Income Fund 112,001 58,610 -- -- -- -- International Stock Fund -- -- -- -- (106,696) -- Vanguard 500 Index Fund -- -- -- -- -- (355,696) Small Cap Fund -- -- -- -- -- -- Realized gain: First Financial Bancorp Common Stock -- -- -- 780,957 -- -- Employee Benefit Equity Fund -- 34,239 3,952 -- -- -- Employee Benefit Fixed Income Fund 45,620 -- -- -- -- -- International Stock Fund -- -- -- -- -- -- Vanguard 500 Index Fund -- -- -- -- -- (33,999) Small Cap Fund -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net appreciation (depreciation): $ 157,621 $ 20,634 $ (290,746) $ 1,879,019 $ (106,696) $ (389,695) =========== =========== =========== =========== =========== =========== YEAR ENDED DECEMBER 31, 2001 ---------------------------- SMALL CAP FUND TOTAL ----------- ----------- Unrealized appreciation (depreciation) in fair value of: First Financial Bancorp Common Stock $ -- $ 1,098,062 Employee Benefit Equity Fund -- (366,913) Employee Benefit Fixed Income Fund -- 170,611 International Stock Fund -- (106,696) Vanguard 500 Index Fund -- (355,696) Small Cap Fund 130,560 130,560 Realized gain: First Financial Bancorp Common Stock -- 780,957 Employee Benefit Equity Fund -- 38,191 Employee Benefit Fixed Income Fund -- 45,620 International Stock Fund -- -- Vanguard 500 Index Fund -- (33,999) Small Cap Fund (160,587) (160,587) ----------- ----------- Net appreciation (depreciation): $ (30,027) $ 1,240,110 =========== ===========
10 First Financial Bancorp Thrift Plan and Trust Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2000 --------------------------------------------------------------------------------------- FIRST FINANCIAL FIXED BANCORP VANGUARD INCOME BALANCED EQUITY COMMON INT'L 500 FUND FUND FUND STOCK FUND FUND FUND ----------- ----------- ----------- ----------- ----------- ----------- Unrealized appreciation (depreciation) in fair value of: First Financial Bancorp Common Stock $ -- $ -- $ -- $(5,451,554) $ -- $ -- Employee Benefit Equity Fund -- 32,793 206,438 -- -- -- Employee Benefit Fixed Income Fund 179,985 123,105 -- -- -- -- International Stock Fund -- -- -- -- (62,497) -- Vanguard 500 Index Fund -- -- -- -- -- (253,282) Small Cap Fund -- -- -- -- -- -- Realized gain: First Financial Bancorp Common Stock -- -- -- (711,204) -- -- Employee Benefit Equity Fund -- (3,563) 2,125 -- -- -- Employee Benefit Fixed Income Fund 939 -- -- -- -- -- International Stock Fund -- -- -- -- 29,288 -- Vanguard 500 Index Fund -- -- -- -- -- 462 Small Cap Fund -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net appreciation (depreciation): $ 180,924 $ 152,335 $ 208,563 $(6,162,758) $ (33,209) $ (252,820) =========== =========== =========== =========== =========== =========== YEAR ENDED DECEMBER 31, 2000 ------------------------------- SMALL CAP FUND TOTAL ----------- ----------- Unrealized appreciation (depreciation) in fair value of: First Financial Bancorp Common Stock $ -- $(5,451,554) Employee Benefit Equity Fund -- 239,231 Employee Benefit Fixed Income Fund -- 303,090 International Stock Fund -- (62,497) Vanguard 500 Index Fund -- (253,282) Small Cap Fund (187,283) (187,283) Realized gain: First Financial Bancorp Common Stock -- (711,204) Employee Benefit Equity Fund -- (1,438) Employee Benefit Fixed Income Fund -- 939 International Stock Fund -- 29,288 Vanguard 500 Index Fund -- 462 Small Cap Fund 110,141 110,141 ----------- ----------- Net appreciation (depreciation): $ (77,142) $(5,984,107) =========== ===========
The fair value of individual investments that represent five (5) percent or more of the Plan's net assets are as follows:
DECEMBER 31 2001 2000 ----------------------- ------------------------ First Financial Bancorp common stock $23,249,409 $22,364,894 Employee Benefit Equity Fund 6,919,319 8,269,342 Employee Benefit Fixed Income Fund 3,013,851 3,227,198 Prime Corporate Money Fund 3,290,463 3,141,124 Vanguard 500 Index Fund 2,665,985 2,995,680
11 First Financial Bancorp Thrift Plan and Trust Notes to Financial Statements (continued) 4. INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service dated March 3, 1995, stating that the Plan is qualified under section 401(a) of the Internal Revenue Code (the "Code") and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. However, the Plan has been amended and restated subsequent to the date of the determination letter. The Plan Administrator believes the Plan, as amended and restated, is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. 5. TRANSACTIONS WITH PARTIES-IN-INTEREST Administrative and other service fees are paid by the Plan Sponsor. The Trust is not charged for administrative services performed on its behalf by First Financial Bancorp. The Trust invests in common stock of the Plan Sponsor. An affiliate of the Plan Sponsor is the Plan Trustee. 12 SUPPLEMENTAL SCHEDULES First Financial Bancorp Thrift Plan and Trust EIN 31-1042001/Plan 002 Schedule H, line 4i - Schedule of Assets (Held at End of Year) December 31, 2001
NUMBER OF SHARES OR CURRENT IDENTITY OF ISSUE/DESCRIPTION OF ASSET PRINCIPAL AMOUNT COST VALUE --------------------------------------------------------------------------------------------------------------------------------- First Financial Bancorp common stock* 1,317,247 shares $ 8,575,990 $ 23,249,409 Goldman Sachs Prime Corporate Money Fund 3,290,463 shares 3,290,463 3,290,463 Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio 62,706 shares 2,424,835 3,013,851 Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First National Bank of Southwestern Ohio 47,878 shares 5,811,247 6,919,319 International Fund Managers International Equity Fund 4,002 shares 215,698 150,525 T Rowe Price International Stock Fund 13,030 shares 225,698 143,201 Templeton Foreign Fund-Class A 19,911 shares 205,698 184,176 Vanguard 500 Vanguard 500 Index Fund 25,177 shares 3,274,963 2,665,985 Small Cap Neuberger & Berman Genesis Fund 13,334 shares 270,855 271,089 Liberty Acorn Class Z 14,694 shares 258,983 262,725 T Rowe Price New Horizons Fd 11,785 shares 327,393 266,694 ----------------------- ----------------------- $24,881,823 $40,417,437 ==================================================
* Indicates party-in-interest to the Plan 13
First Financial Bancorp Thrift Plan and Trust EIN 31-1042001/Plan 002 Line 27d - Schedule of Reportable Transactions For the year ended December 31, 2001 EXPENSES CURRENT INCURRED VALUE OF NET PURCHASE SELLING WITH COST OF ASSET ON GAIN IDENTITY OF ISSUE/DESCRIPTION OF ASSET PRICE PRICE TRANSACTION ASSET VALUATION DATE (LOSS) ------------------------------------------------------------------------------------------------------------------------------------ Category (iii)--series of transactions in excess of 5 percent of plan assets * Goldman Sachs Prime Corporate Money Fund $ 8,104,185 $ - $ - $ 8,104,185 $ 8,104,185 $ - * Goldman Sachs Prime Corporate Money Fund - 7,954,846 - 7,954,846 7,954,846 -
There were no category (i), (ii), or (iv) reportable transactions during 2001. * Transaction occurred on the market. NOTE: Rental expense is not applicable 14 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has caused this annual report to be signed by the undersigned thereunto duly authorized. FIRST FINANCIAL BANCORP THRIFT AND TRUST Date: June 26, 2002 By: /s/ Betty S. Irvine ---------------------- ------------------------------- Betty S. Irvine Asst. Vice President Human Resources First Financial Bancorp /s/ C. Douglas Lefferson ----------------------------- C. Douglas Lefferson Sr. Vice President and Chief Financial Officer First Financial Bancorp