8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report: July 21, 2003

FIRST FINANCIAL BANCORP.

(Exact name of registrant as specified in its charter)

Ohio (State or other jurisdiction of incorporation)	0-12379 (Commission File Number)	31-1042001 (IRS Employer Identification No.)
300 High Street Hamilton, Ohio (Address of principal executive offices)		45011 (Zip Code)

Registrant’s telephone number, including area code: (513) 867-5240

TABLE OF CONTENTS

	Item 7. Exhibits.
	Item 9. Regulation FD Disclosure.
SIGNATURES
Exhibit Index
EX-99.1 Press Release

Form 8-K First Financial Bancorp

Item 7. Exhibits.

     (a)  Exhibit:

99.1 First Financial Bancorp. Press Release dated July 21, 2003.

Item 9. Regulation FD Disclosure.

On July 21, 2003, First Financial Bancorp. issued its earnings press release that included the results of operations and financial condition for the second quarter of 2003. A copy of the earnings press release is attached as Exhibit 99.1. This information is being provided under Items 9 and 12 “Disclosure of Results of Operations and Financial Condition.”

The earnings press release includes two non-GAAP financial measures. The first non-GAAP financial measure appears in the first paragraph under the heading “Net Interest Income.” The second appears in the table entitled “Additional Data – Fully Tax Equivalent Net Interest Income.” 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.

Below is a table showing “net interest income” calculated and presented in accordance with GAAP and the adjustments made to arrive at the non-GAAP financial measure “net interest income – tax equivalent.” The table also shows “net interest margin” calculated and presented in accordance with GAAP and the method used to arrive at the non-GAAP financial measure “net interest margin (fully tax equivalent).”

		Three Months Ended															Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			June 30,
		2003			2003			2002			2002			2002			2003			2002
											(Dollars in thousands)
Net interest income		$	37,179		$	37,236		$	39,447		$	40,583		$	41,681		$	74,415		$	82,727
Tax equivalent adjustment			918			938			984			1,017			1,044			1,856			2,107
	Net interest income — tax equivalent	$	38,097		$	38,174		$	40,431		$	41,600		$	42,725		$	76,271		$	84,834
Average earning assets			3,572,557			3,457,340			3,401,949			3,427,335			3,474,038			3,515,267			3,498,845
Net interest margin*			4.17	%		4.37	%		4.60	%		4.70	%		4.81	%		4.27	%		4.77	%
Net interest margin (fully tax equivalent)*			4.28	%		4.48	%		4.72	%		4.82	%		4.93	%		4.38	%		4.89	%

Margins are calculated using net interest income annualized divided by average earning assets.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FIRST FINANCIAL BANCORP.
By:	/s/ C. Douglas Lefferson
	C. Douglas Lefferson Senior Vice President and Chief Financial Officer

Date: July 21, 2003

Form 8-K First Financial Bancorp

Exhibit Index

Exhibit No.	Description
99.1	First Financial Bancorp. Press Release dated April 21, 2003.

EX-99.1 3 l02200aexv99w1.htm EX-99.1 PRESS RELEASE

EXHIBIT 99.1

July 21, 2003

First Financial Bancorp Reports Second-Quarter Earnings

HAMILTON, Ohio – First Financial Bancorp (Nasdaq: FFBC) president and chief executive officer, Stanley N. Pontius, today announced second-quarter 2003 earnings of $10,610,000 or 24 cents in diluted earnings per share, compared to $13,431,000 or 29 cents for the same period in 2002. This represents a 17.2 percent decrease in earnings per share from the second quarter of 2002. Bancorp also announced year-to-date earnings of $21,241,000 or 48 cents in diluted earnings per share compared to $25,832,000 or 56 cents in diluted earnings per share for the same period in 2002. This represents a 14.3 percent decrease in year-to-date earnings per share.

Return on assets for the second quarter was 1.11 percent for 2003, compared to 1.44 percent for 2002. Return on average shareholders’ equity was 11.5 percent for the second quarter of 2003, versus 13.9 percent for the comparable period in 2002. Year-to-date return on assets was 1.13 percent compared to 1.38 percent in 2002, while return on average shareholders equity decreased to 11.5 percent from 13.4 percent.

“Our earnings performance continues to be adversely impacted by margin compression and the continued uncertainty in Midwest economic conditions,” Pontius said. “Despite the adverse impact of these macro factors, Bancorp remains committed to its growth initiatives in desirable markets and continues to make progress in that regard.”

Bancorp’s growth initiatives include the recent hiring of a corporate sales director with a strong retail background and the continuation of a branch repositioning strategy that focuses on Northwestern Indiana, Southwestern Ohio and Northern Kentucky markets.

(The preceding overview of First Financial Bancorp’s earnings is supplemented with the following detail:)

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Net Interest Income:

Net interest income for the second quarter of 2003 was $4.5 million or 10.8 percent less than the second quarter of 2002. The major contributing factor to the decline in net interest income was net interest margin compression due to the asset sensitive position of Bancorp’s balance sheet. Net interest income on a year-to-date basis decreased $8.3 million or 10.0 percent. Bancorp’s net interest margin decreased to 4.17 percent in the second quarter of 2003 from 4.81 percent in the second quarter of 2002. Year-to-date net interest margin was 4.27 percent compared to 4.77 percent in 2002. This margin compression was due to continued downward repricing of assets without a point-for-point decrease in deposit liability rates. The continued repricing of adjustable and variable rate loans was the primary driver in loan interest and fees in the second quarter of 2003 that was $6.4 million or 12.0 percent lower than the comparable period a year ago. Investment income declined by $1.7 million or 19.6 percent from the second quarter a year ago. As interest rates declined, cash flows from mortgage-related investment prepayments and called securities accelerated, causing a redeployment of funds at lower yields. In total, interest income declined by $8.2 million from second quarter 2002. A decline in total interest expense of $3.6 million or 18.4 percent in the second quarter of 2003 versus second quarter of 2002 did not offset the decline in interest income. As a result of strategies to manage interest rate risk, Bancorp also increased the amount of its long-term wholesale funding, thereby increasing the cost of its funding on a relative basis.

During the second quarter of 2003 Bancorp repositioned the investment portfolio by selling longer-maturity mortgage-backed securities and purchasing shorter-maturity mortgage-backed securities, thus shortening the average maturity of approximately $43 million in certain fixed rate investments. This strategy was intended to offset the adverse impact of accelerated prepayments on the longer-term issues. The transaction resulted in a $31,000 after-tax loss in the second quarter of 2003, but is expected to improve the net interest income of future periods.

Average outstanding loan balances on a linked quarter basis were 3.0 percent higher. The primary area of loan growth has been in the residential real estate category, a lower credit risk loan category. On a linked-quarter basis, the average real estate mortgage portfolio increased $56 million. That growth, plus increases in commercial loans, offset decreases in construction, installment, credit card, and leases, for total loan growth since December 2002 of $83 million or 3.02 percent on ending balances.

2

Credit Quality:

The provision for loan loss expense for the second quarter of 2003 was $3.9 million compared to $3.4 million for the same period in 2002. Year-to-date provision expense was $7.2 million or $1.9 million less than 2002. Net charge-offs of $3.4 million for the second quarter were $800,000 more than the $2.6 million in net charge-offs for the second quarter of 2002. Year-to-date net charge-offs were $6.5 million in 2003, down $1.6 million from the $8.1 million recorded in 2002. The percentage of net charge-offs to average loans was 0.47 percent for year-to-date 2003 compared with 0.58 percent for the same period in 2002.

Bancorp continued to maintain appropriate reserves with an allowance to ending loans ratio of 1.73 percent at quarter end versus 1.71 percent a year ago. Given the increase in nonperforming loans coupled with a loan mix shift toward assets with less credit risk, it is management’s belief that the allowance for loan losses is adequate to absorb estimated probable credit losses.

Total nonperforming assets – which includes nonaccrual loans, restructured loans, and other real estate owned – increased to $37.8 million at the end of the second quarter of 2003 from $25.9 million at June 30, 2002. Nonaccrual loans increased $4.6 million during the same period; restructured loans increased by $7.2 million, accounting for the majority of the increase in nonperforming assets.

On a linked quarter basis – second quarter 2003 compared to first quarter 2003 – total nonperforming assets increased $4.6 million or 13.7 percent. The primary reason for this increase is the addition of two commercial credits. Total underperforming assets on a linked quarter basis increased 12.2 percent as loans delinquent over 90 days decreased by $85,000.

Bancorp’s level of nonperforming assets is reflective of the uncertain economy in the corporation’s primary markets in Ohio and Indiana. If the current economic conditions continue or decline, Bancorp could see a continued less-than-favorable impact on credit quality.

Noninterest Income:

Second quarter 2003 noninterest income, excluding securities transactions, was $14,242,000, an increase of 2.1 percent from the second quarter of 2002. Service charge income decreased $4,000 or 0.08 percent from the same quarter a year ago. Trust revenues for the second quarter of 2003 were $346,000 or 8.95 percent less than the comparable period last year. The other category of noninterest income increased $639,000 or 12.4 percent from a year ago, as gains on the sale of mortgage loans increased $677,000. Impairment charges of $440,000 against the mortgage-servicing asset in a valuation reserve were included

3

as a reduction in other income for the second quarter of 2003. There were no such charges in the second quarter of 2002.

Year-to-date noninterest income, excluding securities transactions, decreased 2.27 percent. This decrease was primarily the result of a $625,000 decrease in trust fees from 2002.

Noninterest Expense:

Total noninterest expense decreased $603,000 or 1.86 percent for the second quarter of 2003 from the second quarter of 2002. The single largest category of decrease was data-processing expense, down $498,000 from 2002 due to the efficiencies gained through Project Renaissance. Occupancy expense was down $187,000 from 2002, while salaries and employee benefits expense was down $131,000. These decreases were somewhat offset by a $158,000 increase in other noninterest expense. On a linked quarter basis, total noninterest expense remained relatively flat. Year-to-date noninterest expenses for 2003 were $303,000 or 0.5 percent less than 2002.

Other Items:

Bancorp repurchased 435,900 shares of its common stock during the second quarter of 2003 under a previously approved and ongoing program for general corporate purposes.

During the second quarter of 2003, Bancorp announced the planned sale of a $14 million Community First Bank & Trust branch located in Chickasaw, Ohio, to Osgood State Bank. This transaction is expected to close in the third quarter of 2003, subject to regulatory approval.

Bancorp has expanded the functionality of the investor-relations portion of its web site at www.ffbc-oh.com by partnering with SNL Financial, LC, a leading provider of banking industry data and the IR WebLink product. Information regarding previous SEC filings and press releases, as well as historical stock price information and peer comparisons, can be accessed. Bancorp is committed to providing timely and useful information to the investment community and its shareholders.

A $3.9 billion publicly owned bank holding company with over 4,000 shareholders, First Financial Bancorp currently operates 8 banking affiliates in Ohio, Michigan, Kentucky, and Indiana with a total of 103 retail banking centers as well as an investment-advisor affiliate.

This release should be read in conjunction with the consolidated financial statements, notes, and tables attached and in the First Financial Bancorp Annual Report on Form 10-K for the year ended December 31, 2002. Management’s analysis may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risk and uncertainties that may cause actual results to differ materially. Factors that could cause actual results to differ from those discussed in the

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forward-looking statements include, but are not limited to, the strength of the local economies in which operations are conducted, the effects of and changes in policies and laws of regulatory agencies, inflation, and interest rates. For further discussion of certain factors that may cause such forward-looking statements to differ materially from actual results, refer to the 2002 Form 10-K.

First Financial Bancorp
P.O. Box 476
Hamilton, OH 45012
Analyst Contact: C. Douglas Lefferson
513-867-4993
doug.lefferson@ffbc-oh.com
Media Contact: Cheryl R. Lipp
513-867-4929
cheryl.lipp@comfirst.com

5

FIRST FINANCIAL BANCORP.
CONSOLIDATED FINANCIAL DATA

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

																		Six months ended
			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			June 30,
			2003			2003			2002			2002			2002			2003			2002
EARNINGS
Net interest income			$	37,179		$	37,236		$	39,447		$	40,583		$	41,681		$	74,415		$	82,727
Net earnings				10,610			10,631			11,601			10,802			13,431			21,241			25,832
Net earnings per share — basic			$	0.24		$	0.24		$	0.26		$	0.24		$	0.29		$	0.48		$	0.56
Net earnings per share — diluted			$	0.24		$	0.24		$	0.26		$	0.24		$	0.29		$	0.48		$	0.56
KEY RATIOS
Return on average assets				1.11	%		1.16	%		1.25	%		1.16	%		1.44	%		1.13	%		1.38	%
Return on average shareholders’ equity				11.46	%		11.52	%		12.22	%		11.10	%		13.92	%		11.49	%		13.43	%
Average shareholders’ equity to average assets				9.66	%		10.03	%		10.26	%		10.50	%		10.35	%		9.84	%		10.30	%
Net interest margin				4.17	%		4.37	%		4.60	%		4.70	%		4.81	%		4.27	%		4.77	%
Net interest margin (fully tax equivalent)				4.28	%		4.48	%		4.72	%		4.82	%		4.93	%		4.38	%		4.89	%
COMMON STOCK DATA
Average basic shares outstanding				44,486,775			44,893,511			45,217,538			45,686,803			46,129,716			44,689,019			46,316,229
Average diluted shares outstanding				44,519,484			45,048,972			45,369,400			45,812,452			46,214,803			44,783,104			46,445,758
Ending shares outstanding				44,277,529			44,709,604			45,003,923			45,458,525			45,926,107			44,277,529			45,926,107
Market price:
		High	$	17.00		$	17.19		$	18.87		$	20.00		$	20.31		$	17.19		$	20.31
		Low	$	15.00		$	15.26		$	15.99		$	15.90		$	15.80		$	15.00		$	15.65
		Close	$	15.83		$	15.86		$	16.39		$	17.81		$	19.57		$	15.83		$	19.57
Book value			$	8.40		$	8.34		$	8.39		$	8.49		$	8.40		$	8.40		$	8.40
Common dividend declared			$	0.15		$	0.15		$	0.15		$	0.15		$	0.15		$	0.30		$	0.30
AVERAGE BALANCE SHEET ITEMS
Loans less unearned income			$	2,811,848		$	2,765,970		$	2,751,664		$	2,777,657		$	2,789,773		$	2,789,036		$	2,807,124
Investment securities				747,090			650,619			605,729			634,160			645,240			699,121			635,834
Other earning assets				13,619			40,751			44,556			15,518			39,025			27,110			55,887
	Total earning assets			3,572,557			3,457,340			3,401,949			3,427,335			3,474,038			3,515,267			3,498,845
Total assets				3,841,251			3,730,744			3,670,699			3,678,706			3,736,305			3,786,303			3,766,149
Noninterest-bearing deposits				406,730			416,824			410,568			396,230			406,772			411,749			409,933
Interest-bearing deposits				2,536,477			2,487,612			2,487,086			2,498,098			2,571,163			2,512,180			2,597,165
	Total deposits			2,943,207			2,904,436			2,897,654			2,894,328			2,977,935			2,923,929			3,007,098
Borrowings				481,731			410,100			356,646			367,367			352,609			446,113			348,325
Shareholders’ equity				371,219			374,236			376,515			386,211			386,892			372,719			387,928
CREDIT QUALITY
Ending allowance for loan losses			$	48,876		$	48,305		$	48,177		$	48,890		$	47,709		$	48,876		$	47,709
Nonperforming assets:
	Nonaccrual			28,210			24,276			21,456			28,679			23,655			28,210			23,655
	Restructured			7,188			6,291			5,375			691			39			7,188			39
	OREO			2,366			2,636			2,792			1,619			2,181			2,366			2,181
		Total nonperforming assets		37,764			33,203			29,623			30,989			25,875			37,764			25,875
Loans delinquent over 90 days				3,490			3,575			6,818			7,360			4,752			3,490			4,752
Gross charge-offs:
	Commercial real estate			(424	)		(112	)		(618	)		(56	)		(243	)		(536	)		(351	)
	Commercial loans and leases			(1,800	)		(1,699	)		(1,669	)		(2,479	)		(1,111	)		(3,499	)		(4,804	)
	Consumer			(1,957	)		(2,354	)		(2,844	)		(2,343	)		(2,009	)		(4,311	)		(4,511	)
	All other			(18	)		0			(13	)		(84	)		(18	)		(18	)		(101	)
		Total gross charge-offs		(4,199	)		(4,165	)		(5,144	)		(4,962	)		(3,381	)		(8,364	)		(9,767	)
Recoveries:
	Commercial real estate			45			5			111			1			7			50			22
	Commercial loans and leases			229			432			1,763			438			214			661			635
	Consumer			553			642			567			512			545			1,195			934
	All other			1			0			49			3			44			1			57
		Total recoveries		828			1,079			2,490			954			810			1,907			1,648
		Total net charge-offs		(3,371	)		(3,086	)		(2,654	)		(4,008	)		(2,571	)		(6,457	)		(8,119	)
CREDIT QUALITY RATIOS
Allowance to ending loans, net of unearned income				1.73	%		1.74	%		1.75	%		1.76	%		1.71	%		1.73	%		1.71	%
Nonperforming assets to ending loans, net of unearned income plus OREO				1.33	%		1.19	%		1.08	%		1.11	%		0.93	%		1.33	%		0.93	%
90 days past due to loans, net of unearned income				0.12	%		0.13	%		0.25	%		0.26	%		0.17	%		0.12	%		0.17	%
Net charge-offs to average loans, net of unearned income				0.48	%		0.45	%		0.38	%		0.57	%		0.37	%		0.47	%		0.58	%

FIRST FINANCIAL BANCORP.
CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands)
(Unaudited)

									Three months ended,							Six months ended,
					Jun. 30,			Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		June 30,
					2003			2003		2002		2002		2002		2003			2002
Interest income
	Loans, including fees				$	46,418		$	46,704	$	49,827	$	51,459	$	52,768	$	93,122		$	106,845
	Investment securities
			Taxable			5,220			5,258		5,505		6,208		6,708		10,478			13,158
			Tax-exempt			1,632			1,664		1,740		1,769		1,815		3,296			3,663
				Total investment securities interest		6,852			6,922		7,245		7,977		8,523		13,774			16,821
	Interest-bearing deposits with other banks					28			51		42		64		97		79			234
	Federal funds sold and securities purchased under agreements to resell					37			74		163		36		97		111			295
				Total interest income		53,335			53,751		57,277		59,536		61,485		107,086			124,195
Interest expense
	Deposits					11,396			12,084		13,580		14,826		15,867		23,480			33,690
	Short-term borrowings					530			380		380		539		421		910			808
	Long-term borrowings					4,112			3,931		3,731		3,588		3,516		8,043			6,970
	Corporation-obligated mandatorily redeemable capital securities of subsidiary trust					118			120		139		0		0		238			0
				Total interest expense		16,156			16,515		17,830		18,953		19,804		32,671			41,468
				Net interest income		37,179			37,236		39,447		40,583		41,681		74,415			82,727
	Provision for loan losses					3,942			3,214		1,941		5,189		3,404		7,156			9,044
			Net interest income after provision for loan losses			33,237			34,022		37,506		35,394		38,277		67,259			73,683
Noninterest income
	Service charges on deposit accounts					4,923			4,598		4,980		4,911		4,927		9,521			9,674
	Trust revenues					3,522			3,707		3,739		3,792		3,868		7,229			7,854
	Investment securities gains					(36	)		28		80		0		5		(8	)		9
	Other					5,797			5,517		4,788		5,683		5,158		11,314			11,189
				Total noninterest income		14,206			13,850		13,587		14,386		13,958		28,056			28,726
Noninterest expenses
	Salaries and employee benefits					18,028			18,191		17,644		18,021		18,159		36,219			35,954
	Net occupancy					1,816			2,078		2,139		1,901		2,003		3,894			3,933
	Furniture and equipment					1,847			1,801		2,170		2,029		1,785		3,648			3,530
	Data processing					1,516			1,487		1,630		2,306		2,014		3,003			3,881
	Deposit insurance					150			100		137		185		142		250			287
	State taxes					434			460		431		381		448		894			935
	Amortization of intangibles					211			201		201		211		212		412			435
	Other					7,815			7,441		10,013		9,234		7,657		15,256			14,924
				Total noninterest expenses		31,817			31,759		34,365		34,268		32,420		63,576			63,879
Income before income taxes						15,626			16,113		16,728		15,512		19,815		31,739			38,530
Income tax expense						5,016			5,482		5,127		4,710		6,384		10,498			12,698
				Net earnings	$	10,610		$	10,631	$	11,601	$	10,802	$	13,431	$	21,241		$	25,832
ADDITIONAL DATA — FULLY TAX EQUIVALENT NET INTEREST INCOME
Interest income					$	53,335		$	53,751	$	57,277	$	59,536	$	61,485	$	107,086		$	124,195
Tax equivalent adjustment						918			938		984		1,017		1,044		1,856			2,107
		Interest income — tax equivalent				54,253			54,689		58,261		60,553		62,529		108,942			126,302
Interest expense						16,156			16,515		17,830		18,953		19,804		32,671			41,468
		Net interest income — tax equivalent			$	38,097		$	38,174	$	40,431	$	41,600	$	42,725	$	76,271		$	84,834

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

					Jun. 30,			Dec. 31,			Jun. 30,
					2003			2002			2002
ASSETS
	Cash and due from banks				$	170,491		$	181,839		$	162,710
	Interest-bearing deposits with other banks					3,053			4,474			10,083
	Federal funds sold and securities purchased under agreements to resell					1,155			28,291			3,160
	Investment securities, held-to-maturity					20,615			21,571			21,507
	Investment securities, available-for-sale					742,004			605,345			614,358
	Loans
			Commercial			697,975			690,656	*		780,555
			Real estate-construction			74,456			89,674			82,221
			Real estate-mortgage			1,465,999			1,368,207	*		1,305,000
			Installment			556,322			556,975			575,870
			Credit card			20,294			22,068			21,039
			Lease financing			16,460			21,031			28,239
				Total loans		2,831,506			2,748,611			2,792,924
			Less
				Unearned income		226			523			1,046
				Allowance for loan losses		48,876			48,177			47,709
				Net loans		2,782,404			2,699,911			2,744,169
	Premises and equipment					56,852			56,348			58,125
	Goodwill					27,379			27,379			27,379
	Other intangibles					8,675			9,147			9,120
	Deferred income taxes receivable					5,426			4,107			0
	Other assets					94,350			91,540			84,236
			Total Assets		$	3,912,404		$	3,729,952		$	3,734,847
LIABILITIES
	Deposits
		Noninterest-bearing			$	434,183		$	422,453		$	409,468
		Interest-bearing				2,544,196			2,499,981			2,536,640
				Total deposits		2,978,379			2,922,434			2,946,108
	Short-term borrowings					191,709			95,180			110,675
	Long-term borrowings					325,472			290,051			261,294
	Corporation-obligated mandatorily redeemable capital securities of subsidiary trust					10,000			10,000			0
	Deferred tax payable					0			0			2,307
	Accrued interest and other liabilities					34,761			34,684			28,480
				Total Liabilities		3,540,321			3,352,349			3,348,864
SHAREHOLDERS’ EQUITY
	Common stock					395,896			396,252			396,375
	Retained earnings					46,867			39,005			30,204
	Accumulated comprehensive income					7,880			8,189			9,307
	Restricted stock awards					(5,340	)		(4,022	)		(4,792	)
	Treasury stock, at cost					(73,220	)		(61,821	)		(45,111	)
			Total Shareholders’ Equity			372,083			377,603			385,983
			Total Liabilities and Shareholders’ Equity		$	3,912,404		$	3,729,952		$	3,734,847

ADDITIONAL DATA — RISK BASED CAPITAL

	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
	2003			2003			2002			2002			2002
Tier 1 Capital	$	338,933		$	341,739		$	344,090		$	350,918		$	345,037
Tier 1 Ratio		12.51	%		12.66	%		12.62	%		12.89	%		12.66	%
Total Capital	$	372,994		$	375,662		$	378,339		$	385,137		$	379,265
Total Capital Ratio		13.76	%		13.92	%		13.88	%		14.14	%		13.92	%
Total Risk-Adjusted Assets	$	2,710,070		$	2,699,431		$	2,726,025		$	2,722,820		$	2,724,721
Leverage Ratio		8.90	%		9.24	%		9.46	%		9.62	%		9.31	%

* Includes reclassification of approximately $70 million from Commercial to Real estate-mortgage during the period.

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,			June 30,
					2003			2003			2002			2002			2002			2003			2002
ASSETS
		Cash and due from banks			$	127,405		$	140,351		$	141,484		$	122,045		$	126,820		$	133,842		$	131,695
		Interest-bearing deposits with other banks				7,235			9,294			5,605			9,900			16,505			8,259			20,758
		Federal funds sold and securities purchased under agreements to resell				6,384			31,457			38,951			5,618			22,520			18,851			35,129
		Investment securities				747,090			650,619			605,729			634,160			645,240			699,121			635,834
		Loans
			Commercial			700,439			701,288			683,576	*		741,938	*		796,984			700,861			785,989
			Real estate-construction			77,879			86,466			107,238			71,439			88,092			82,149			83,056
			Real estate-mortgage			1,443,940			1,388,330			1,351,743	*		1,342,129	*		1,294,918			1,416,288			1,315,903
			Installment			552,301			549,668			565,887			575,502			560,402			550,992			570,508
			Credit card			20,077			20,692			20,973			21,093			20,893			20,383			21,146
			Lease financing			17,488			19,911			22,862			26,442			29,725			18,693			31,999
				Total loans		2,812,124			2,766,355			2,752,279			2,778,543			2,791,014			2,789,366			2,808,601
			Less
				Unearned income		276			385			615			886			1,241			330			1,477
				Allowance for loan losses		48,168			48,625			50,101			48,563			47,208			48,395			47,334
				Net loans		2,763,680			2,717,345			2,701,563			2,729,094			2,742,565			2,740,641			2,759,790
		Premises and equipment				56,675			56,468			56,955			57,927			59,094			56,572			59,776
		Deferred income tax				5,555			3,958			0			0			0			4,761			0
		Other assets				127,227			121,252			120,412			119,962			123,561			124,256			123,167
	Total Assets				$	3,841,251		$	3,730,744		$	3,670,699		$	3,678,706		$	3,736,305		$	3,786,303		$	3,766,149
LIABILITIES
		Deposits
			Interest-bearing		$	291,770		$	298,561		$	262,957		$	273,064		$	312,239			295,147			319,873
			Savings			874,626			850,866			873,547			864,761			843,371			862,812			827,873
			Time			1,370,081			1,338,185			1,350,582			1,360,273			1,415,553			1,354,221			1,449,419
				Total interest-bearing deposits		2,536,477			2,487,612			2,487,086			2,498,098			2,571,163			2,512,180			2,597,165
			Noninterest-bearing			406,730			416,824			410,568			396,230			406,772			411,749			409,933
				Total deposits		2,943,207			2,904,436			2,897,654			2,894,328			2,977,935			2,923,929			3,007,098
		Borrowed funds
			Short-term borrowings			157,965			102,310			82,149			107,802			87,757			130,291			85,321
			Long-term borrowings			323,766			307,790			274,497			259,565			264,852			315,822			263,004
				Total borrowed funds		481,731			410,100			356,646			367,367			352,609			446,113			348,325
			Corporation-obligated mandatorily redeemable capital securities of subsidiary trust			10,000			10,000			10,002			543			0			10,000			0
		Deferred income tax				0			0			2,019			2,790			231			0			431
		Accrued interest and other liabilities				35,094			31,972			27,863			27,467			18,638			33,542			22,367
	Total Liabilities					3,470,032			3,356,508			3,294,184			3,292,495			3,349,413			3,413,584			3,378,221
SHAREHOLDERS’ EQUITY
		Common stock				395,916			396,033			396,257			396,276			396,486			395,974			396,570
		Retained earnings				43,281			38,881			31,874			33,531			31,133			41,093			28,118
		Accumulated comprehensive income				7,501			8,379			10,655			10,559			5,648			7,938			6,060
		Restricted stock awards				(5,613	)		(5,625	)		(4,193	)		(4,545	)		(4,996	)		(5,619	)		(4,762	)
		Treasury stock, at cost				(69,866	)		(63,432	)		(58,078	)		(49,610	)		(41,379	)		(66,667	)		(38,058	)
	Total Shareholders’ Equity					371,219			374,236			376,515			386,211			386,892			372,719			387,928
	Total Liabilities and Shareholders’ Equity				$	3,841,251		$	3,730,744		$	3,670,699		$	3,678,706		$	3,736,305		$	3,786,303		$	3,766,149

* Includes reclassification of approximately $70 million from Commercial to Real estate-mortgage during the third quarter of 2002, which affected the averages for the third and fourth quarters of 2002 by approximately $35 million each.

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EX-99.1

EX-99.1  Press Release