11-K 1 l08161ae11vk.htm FIRST FINANCIAL 11-K First Financial 11-K
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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, 2003

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

 


Table of Contents

Financial Statements and Supplemental Schedules

First Financial Bancorp Thrift Plan and Trust

Years ended December 31, 2003 and 2002
with Report of Independent Registered Public Accounting Firm

 


First Financial Bancorp Thrift Plan and Trust

Financial Statements and Supplemental Schedules

Years ended December 31, 2003 and 2002

Table of Contents

 


Table of Contents

Report of Independent Registered Public Accounting Firm

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, 2003 and 2002, 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 the standards of the Public Company Accounting Oversight Board (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, 2003 and 2002, and changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

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, 2003, 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.

Cincinnati, Ohio
June 18, 2004

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Table of Contents

First Financial Bancorp Thrift Plan and Trust

Statement of Net Assets Available for Benefits, with Fund Information

December 31, 2003

                                                                         
    Fund Information
   
                                    First                    
                                    Financial                    
                                    Bancorp                    
            Fixed                   Common           Vanguard   Small    
    Savings   Income   Balanced   Equity   Stock   International   500 Index   Cap   2003
    Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Total
Assets
                                                                       
Investments — at fair value:
                                                                       
Goldman Sachs Prime Corporate Money Fund
  $ 3,193,638     $ 14,339     $ 33,732     $ 44,563     $ 1,000,948     $ 26,028     $ 60,795     $ 31,278     $ 4,405,321  
Legacy Core Bond Fund
          3,130,431       1,177,967                                     4,308,398  
Legacy Multi-Cap Core Equity Fund
                1,922,821       5,840,762                               7,763,583  
First Financial Bancorp common stock
                            16,576,484                         16,576,484  
Manager International Equity Fund
                                  281,927                   281,927  
T Rowe Price International Stock Fund
                                  285,696                   285,696  
Templeton Foreign Fund-Class A
                                  281,716                   281,716  
Vanguard 500 Index Fund
                                        4,263,334             4,263,334  
Neuberger and Berman Genesis Fund
                                              739,980       739,980  
Columbia Acorn Class Z
                                              747,677       747,677  
T Rowe Price New Horizons Fd
                                              738,157       738,157  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total investments
    3,193,638       3,144,770       3,134,520       5,885,325       17,577,432       875,367       4,324,129       2,257,092       40,392,273  
Receivables:
                                                                       
Interest and dividends
    2,534       11,105       4,184       22       156,646       12       24       122       174,649  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Receivables
    2,534       11,105       4,184       22       156,646       12       24       122       174,649  
Cash
          231       (119 )     (112 )                              
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total assets
    3,196,172       3,156,106       3,138,585       5,885,235       17,734,078       875,379       4,324,153       2,257,214       40,566,922  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Liabilities
                                                                       
Excess contributions to participants
                                                     
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net assets available for benefits
  $ 3,196,172     $ 3,156,106     $ 3,138,585     $ 5,885,235     $ 17,734,078     $ 875,379     $ 4,324,153     $ 2,257,214     $ 40,566,922  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

See accompanying notes.

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First Financial Bancorp Thrift Plan and Trust

Statement of Net Assets Available for Benefits, with Fund Information

December 31, 2002
                                                                         
    Fund Information
   
                                    First                    
                                    Financial                    
                                    Bancorp                    
            Fixed                   Common           Vanguard   Small    
    Savings   Income   Balanced   Equity   Stock   International   500 Index   Cap   2002
    Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Total
Assets
                                                                       
Investments — at fair value:
                                                                       
Goldman Sachs Prime Corporate Money Fund
  $ 2,972,077     $ 62,399     $ 8,627     $ 27,132     $ 93,111     $ 59,010     $ 30,961     $ 14,170     $ 3,267,487  
Fixed Income Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First Financial Bank, National Association
          2,631,818       1,078,234                                     3,710,052  
Equity Fund - Collective Investment Fund for Pension and Profit Sharing Trusts of First Financial Bank, National Association
                1,596,896       4,639,635                               6,236,531  
First Financial Bancorp common stock
                            18,976,353                         18,976,353  
Manager International Equity Fund
                                  164,324                   164,324  
T Rowe Price International Stock Fund
                                  161,090                   161,090  
Templeton Foreign Fund-Class A
                                  161,193                   161,193  
Vanguard 500 Index Fund
                                        2,559,192             2,559,192  
Neuberger and Berman Genesis Fund
                                              428,665       428,665  
Liberty Acorn Class Z
                                              428,033       428,033  
T Rowe Price New Horizons Fd
                                              417,160       417,160  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total investments
    2,972,077       2,694,217       2,683,757       4,666,767       19,069,464       545,617       2,590,153       1,288,028       36,510,080  
Receivables:
                                                                       
Interest and dividends
    3,375       70       23       31       174,309       54       26       18       177,906  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Receivables
    3,375       70       23       31       174,309       54       26       18       177,906  
Cash
    2,533       2,868       5,029       5,352       13,830       1,381       19,051       2,733       52,777  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total assets
    2,977,985       2,697,155       2,688,809       4,672,150       19,257,603       547,052       2,609,230       1,290,779       36,740,763  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Liabilities
                                                                       
Excess contributions to participants
                            520                         520  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net assets available for benefits
  $ 2,977,985     $ 2,697,155     $ 2,688,809     $ 4,672,150     $ 19,257,083     $ 547,052     $ 2,609,230     $ 1,290,779     $ 36,740,243  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

See accompanying notes.

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Table of Contents

First Financial Bancorp Thrift Plan and Trust

Statement of Changes in Net Assets Available for Benefits, with Fund Information

December 31, 2003

                                                                         
    Fund Information
   
                                    First                    
                                    Financial                    
                                    Bancorp                    
            Fixed                   Common           Vanguard   Small    
    Savings   Income   Balanced   Equity   Stock   International   500 Index   Cap   2003
    Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Total
Investment income:
                                                                       
Net appreciation (depreciation) in fair value of investments
  $     $ (37,271 )   $ 374,732     $ 1,171,529     $ (568,151 )   $ 185,732     $ 768,142     $ 560,956     $ 2,455,669  
Dividends
                3,486       10,767       668,084       11,133       54,196       659       748,325  
Interest
    32,991       82,852       28,392       372       3,321       143       456               148,527  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total investment income
    32,991       45,581       406,610       1,182,668       103,254       197,008       822,794       561,615       3,352,521  
Employer contributions
                            932,070                         932,070  
Participant contributions
    179,148       268,668       312,035       455,459       545,318       96,597       434,203       229,894       2,521,322  
Participant loan payments
    208                       208       624                               1,040  
Transfers from previous plans of new employeees
    5,742       5,757       472             2,259             7,825       5,639       27,694  
Service fee
                            (1,650 )                       (1,650 )
Capital gain
                                  746             842       1,588  
Benefits payments
    (159,642 )     (376,462 )     (234,953 )     (418,191 )     (1,333,798 )     (36,072 )     (264,289 )     (184,499 )     (3,007,906 )
Excess contributions due to participants
                                                           
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net increase (decrease) prior to interfund transfers
    58,447       (56,456 )     484,164       1,220,144       248,077       258,279       1,000,533       613,491       3,826,679  
Interfund transfers
    159,740       515,407       (34,388 )     (7,059 )     (1,771,082 )     70,048       714,390       352,944        
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net increase (decrease) in net assets available for benefits
    218,187       458,951       449,776       1,213,085       (1,523,005 )     328,327       1,714,923       966,435       3,826,679  
Net assets available for benefits at beginning of year
    2,977,985       2,697,155       2,688,809       4,672,150       19,257,083       547,052       2,609,230       1,290,779       36,740,243  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net assets available for benefits at end of year
  $ 3,196,172     $ 3,156,106     $ 3,138,585     $ 5,885,235     $ 17,734,078     $ 875,379     $ 4,324,153     $ 2,257,214     $ 40,566,922  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

See accompanying notes.

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Table of Contents

First Financial Bancorp Thrift Plan and Trust

Statement of Changes in Net Assets Available for Benefits, with Fund Information

December 31, 2002

                                                                         
    Fund Information
   
                                    First                    
                                    Financial                    
                                    Bancorp                    
            Fixed                   Common           Vanguard   Small    
    Savings   Income   Balanced   Equity   Stock   International   500 Index   Cap   2002
    Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Total
Investment income:
                                                                       
Net appreciation (depreciation) in fair value of investments
  $     $ 205,886     $ (250,515 )   $ (1,108,554 )   $ (1,220,365 )   $ (78,294 )   $ (714,892 )   $ (190,648 )   $ (3,357,382 )
Dividends
                            722,762       4,994       41,311             769,067  
Interest
    53,534       676       704       1,193       2,699       279       1,058       776       60,919  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total investment income
    53,534       206,562       (249,811 )     (1,107,361 )     (494,904 )     (73,021 )     (672,523 )     (189,872 )     (2,527,396 )
Employer contributions
                            924,958                         924,958  
Participant contributions
    136,987       151,218       304,062       467,195       582,323       87,069       434,423       192,634       2,355,911  
Transfers from previous plans of new employees
    8,457       77,719       13,257       45,709       11,108       13,663       44,689       47,373       261,975  
Service fee
                            (1,350 )                       (1,350 )
Capital gain
                                              1,520       1,520  
Benefits payments
    (290,252 )     (168,648 )     (119,704 )     (316,067 )     (3,501,620 )     (57,978 )     (354,136 )     (97,641 )     (4,906,046 )
Excess contributions due to participants
                            (520 )                       (520 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net increase (decrease) prior to interfund transfers
    (91,274 )     266,851       (52,196 )     (910,524 )     (2,480,005 )     (30,267 )     (547,547 )     (45,986 )     (3,890,428 )
Interfund transfers
    286,554       442,697       (83,818 )     273,154       (1,860,537 )     70,047       405,469       466,434        
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net increase (decrease) in net assets available for benefits
    195,280       709,548       (136,014 )     (637,370 )     (4,340,542 )     39,780       (142,078 )     420,448       (3,890,948 )
Net assets available for benefits at beginning of year
    2,782,705       1,987,607       2,824,823       5,309,520       23,597,625       507,272       2,751,308       870,331       40,631,191  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net assets available for benefits at end of year
  $ 2,977,985     $ 2,697,155     $ 2,688,809     $ 4,672,150     $ 19,257,083     $ 547,052     $ 2,609,230     $ 1,290,779     $ 36,740,243  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

See accompanying notes.

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Table of Contents

First Financial Bancorp Thrift Plan and Trust

Notes to Financial Statements

December 31, 2003

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 up to the first 6% of the participant’s deferrals. Employer contributions are initially invested in the First Financial Bancorp Common Stock Fund and are fully vested upon contribution to the Plan. As of March 31, 2002, participants have the option of directing the Employer contributions out of the stock fund on the first valuation date following the date of contribution. 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.

Effective January 1, 2003, participants may elect to make contributions to the Plan of up to 50 percent of their eligible salary on a before-tax basis. Prior to January 1, 2003, participants were permitted to make contributions to the Plan of up to 12 percent of their eligible salary on a before-tax basis. Prior to January 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.

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Table of Contents

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 that becomes a member of the controlled group may, with consent of Bancorp, adopt this plan for those employees which the Plan determines shall be eligible.

Benefit Payments

Participants may elect an in-service, non-hardship distribution comprised of the participant’s after tax contributions, employer contributions and the earnings of these 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 may withdraw before-tax savings only if the participant can prove “financial hardship” as defined by the Plan Document. Any distribution of before-tax funds results in a one-year suspension of participation in the Plan. Earnings on the participant’s before-tax contributions are not eligible for distribution prior to termination or retirement.

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.

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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.
 
    Beginning in 2003, the Fixed Income Fund invests primarily in the Legacy Core Bond Fund, which holds a diversified portfolio of U.S. Government bonds, notes, agencies, and high quality corporate bonds. The Fixed Income 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. On May 31, 2003, the investments held by the Fixed Income Fund were transferred to the Legacy Core Bond Fund, which is also a related party of the Plan. All investments previously held by the Employee Benefit Fixed Income Fund were transferred to the Legacy Core Bond Fund at their then current market values. The shares in the Legacy Core Bond Fund received by the Plan in exchange for the assets given were based on the then current market value of the respective Legacy Mutual Funds.

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First Financial Bancorp Thrift Plan and Trust

Notes to Financial Statements (continued)

1. Description of the Plan (continued)

Participants’ Accounts (continued)

    Beginning in 2003, the Balanced Fund divides its investments between the Legacy Multi-Cap Core Equity Fund and the Legacy Core Bond Fund. 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. As discussed above and below, on May 31, 2003, all shares in the Employee Benefit Fixed Income Fund and the Employee Benefit Equity Fund were transferred to the Legacy Core Bond Fund and the Legacy Multi-Cap Core Equity Fund, both of which are related parties to the Plan. All investments held by the Employee Benefit Fixed Income Fund and the Employee Benefit Equity Fund were transferred to the Legacy Core Bond Fund and the Legacy Multi-Cap Core Equity Fund at their current market values. The shares in the Legacy Core Bond Fund and the Legacy Multi-Cap Core Equity Fund received by the Plan in exchange for the assets given were based on the then current market value of the respective Legacy Mutual Funds.
 
    Beginning in 2003, the Equity Fund invests in the Legacy Multi-Cap Core Equity Fund, which holds a diversified portfolio of common stocks. The investment objective is long-term growth of capital. See above for discussion regarding the exchange of assets with the Legacy Multi-Cap Core Equity Fund.
 
    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.

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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 tied 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 Cap 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 are 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 Financial Bank, National Association, 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.

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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 fair value by $2,455,669 in 2003 and depreciated by $3,357,382 in 2002 as follows:

                                                                 
    Year ended December 31, 2003
                            First                    
                            Financial                    
                            Bancorp                    
    Fixed                   Common           Vanguard   Small    
    Income   Balanced   Equity   Stock   Int’l   500   Cap    
    Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Total
Unrealized appreciation (depreciation) in fair value of:
First Financial Bancorp Common Stock
  $     $     $     $ (1,503,895 )   $     $     $     $ (1,503,895 )
Legacy Multi-Cap Core Equity Fund
          415,337       1,192,067                               1,607,404  
Legacy Core Bond Fund
    (28,085 )     (37,336 )                                   (65,421 )
International Stock Fund
                            188,874                   188,874  
Vanguard 500 Index Fund
                                  807,734             807,734  
Small Cap Fund
                                        592,316       592,316  
Realized gain:
                                                               
First Financial Bancorp Common Stock
                    935,744                       935,744  
Legacy Multi-Cap Core Equity Fund
          (29,378 )     (20,538 )                             (49,916 )
Legacy Core Bond Fund
    (9,186 )     26,109                                     16,923  
International Stock Fund
                            (3,142 )                 (3,142 )
Vanguard 500 Index Fund
                                  (39,592 )           (39,592 )
Small Cap Fund
                                        (31,360 )     (31,360 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net appreciation (depreciation):
  $ (37,271 )   $ 374,732     $ 1,171,529     $ (568,151 )   $ 185,732     $ 768,142     $ 560,956     $ 2,455,669  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

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First Financial Bancorp Thrift Plan and Trust

Notes to Financial Statements (continued)

3. Investments (continued)

                                                                 
    Year ended December 31, 2002
                            First                    
                            Financial
Bancorp
                   
    Fixed                   Common           Vanguard   Small    
    Income   Balanced   Equity   Stock   Int’l   500   Cap    
    Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Fund
  Total
Unrealized appreciation (depreciation) in fair value of:
                                                               
First Financial Bancorp Common Stock
  $     $     $     $ (2,426,600 )   $     $     $     $ 2,426,600  
Employee Benefit Equity Fund
          (337,832 )     (1,109,155 )                             (1,446,987 )
Employee Benefit Fixed Income Fund
    205,069       72,191                                     277,260  
International Stock Fund
                            (75,249 )                 (75,249 )
Vanguard 500 Index Fund
                                  (601,085 )           (601,085 )
Small Cap Fund
                                        (169,362 )     (169,362 )
Realized gain:
                                                               
First Financial Bancorp Common Stock
                      1,206,235                         1,206,235  
Employee Benefit Equity Fund
          15,126       601                               15,727  
Employee Benefit Fixed Income Fund
    817                                           817  
International Stock Fund
                          (3,045 )                 (3,045 )
Vanguard 500 Index Fund
                                  (113,807 )           (113,807 )
Small Cap Fund
                                        (21,286 )     (21,286 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net appreciation (depreciation):
  $ 205,886     $ (250,515 )   $ (1,108,554 )   $ (1,220,365 )   $ (78,294 )   $ (714,892 )   $ (190,648 )   $ (3,357,382 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

The fair value of individual investments that represent five (5) percent or more of the Plan’s net assets are as follows:

                 
    December 31
    2003
  2002
First Financial Bancorp common stock
  $ 16,576,484     $ 18,976,353  
Employee Benefit Equity Fund
    0       6,236,531  
Legacy Multi-Cap Core Equity Fund
    7,763,583       0  
Employee Benefit Fixed Income Fund
    0       3,710,052  
Legacy Core Bond Fund
    4,308,398       0  
Goldman Sachs Prime Corporate Money Fund
    4,405,321       3,267,487  
Vanguard 500 Index Fund
    4,263,334       2,559,192  

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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 11, 2003, 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. Subsequent to issuance of the determination letter, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan, as amended, 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.

Through May of 2003, the Trust invested in the Employee Benefit Fixed Income Fund and the Employee Benefit Equity Fund, which were managed by the Plan Trustee. On May 31, 2003, all investments held by the Employee Benefit Fixed Income Fund and the Employee Benefit Equity Fund were transferred to the Legacy Core Bond Fund and the Legacy Multi-Cap Core Equity Fund, which are also managed by the Plan Trustee.

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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, 2003

                         
    Number of Shares or           Current
Identity of Issue/Description of Asset
  Principal Amount
  Cost
  Value
First Financial Bancorp common stock*
    1,039,278 shares     $ 5,833,560     $ 16,576,484  
Goldman Sachs
                       
Prime Corporate Money Fund
    4,405,321 shares       4,405,321       4,405,321  
Legacy Core Bond Fund
    426,574 shares       3,507,542       4,308,398  
Legacy Multi-Cap Core Equity Fund
    750,105 shares       6,495,093       7,763,583  
International Fund
                       
Managers International Equity Fund
    6,856 shares       307,459       281,927  
T Rowe Price International Stock Fund
    24,865 shares       341,041       285,696  
Templeton Foreign Fund-Class A
    26,477 shares       256,416       281,716  
Vanguard 500
                       
Vanguard 500 Index Fund
    41,521 shares       4,665,663       4,263,334  
Small Cap
                       
Neuberger & Berman Genesis Fund
    28,593 shares       618,117       739,980  
Columbia Acorn Class Z
    33,142 shares       604,640       747,677  
T Rowe Price New Horizons Fd
    29,764 shares       636,827       738,157  
 
           
 
     
 
 
 
          $ 27,671,679     $ 40,392,273  
 
           
 
     
 
 

*   Indicates party-in-interest to the Plan

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First Financial Bancorp Thrift Plan and Trust

EIN 31-1042001/Plan 002

Schedule H, Line 4 j - Schedule of Reportable Transactions

For the year ended December 31, 2003

                                                 
                    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
  $ 8,864,738     $     $     $ 8,864,738     $ 8,864,738     $  
* Goldman Sachs Prime Corporate Money Fund
        $ 7,726,904           $ 7,726,904     $ 7,726,904        
* First Financial Bancorp common stock**
        $ 2,499,643           $ 1,709,803     $ 2,499,643     $ 789,840  
* Employee Benefit Fixed Income Fund**
        $ 3,521,760           $ 3,521,760     $ 3,521,760        
* Legacy Core Bond Fund**
  $ 3,521,760             $ 3,521,760     $ 3,521,760      
* Employee Benefit Equity Fund**
        $ 7,037,930           $ 7,037,930     $ 7,037,930        
* Legacy Multi-Cap Core Equity Fund**
  $ 7,037,930             $ 7,037,930     $ 7,037,930      

     There were no category (i), (ii), or (iv) reportable transactions during 2003.

*   Transaction occurred on the market.
 
**   Indicates party-in-interest to the Plan

NOTE: Rental expense is not applicable

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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 23, 2004
  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