First Financial releases quarterly report

First Financial Bancorp information

CINCINNATI — First Financial Bancorp announced financial and operational results for the second quarter 2015. For the three months ended June 30, First Financial recorded net income of $18.9 million, or 31 cents per diluted common share, compared to net income of $17.6 million, or 29 cents per diluted common share, in the first quarter of 2015 and $16.0 million, or 28 cents per diluted common share, in the second quarter of 2014

Additionally, the Company announced that its board of directors has authorized a quarterly dividend of 16 cents per common share for the next regularly scheduled dividend, payable on October 1, to shareholders of record as of August 28.

First Financial announced its pending acquisition of Indianapolis, Indiana-based Oak Street Holdings Corporation for $110 million in cash on July 23. A specialty lender providing commission-based financing to insurance agencies, Oak Street had total loans of $238 million as of June 30. The acquisition of Oak Street is expected to close within 30 days and is expected to deliver operating earnings accretion of 16-20 cents per diluted common share and net interest margin expansion of more than 20 basis points in its first full year of operation as a subsidiary of First Financial Bank.

“I am very pleased with our second quarter results,” said Claude Davis, First Financial Bancorp CEO. “ Our net income was 8 percent higher than the first quarter and 19 percent higher than the second quarter last year.

“Although net interest margin continues to be constrained by the prolonged low interest rate environment we are excited about the growth opportunities throughout our footprint,” Davis added. “We are especially encouraged by the growth of our loan portfolio which increased by 7.5 percent, on an annualized basis, during the second quarter.”

“Demand for construction lending is especially strong in our markets,” he also said. “We have funded approximately $48 million of the $156 million committed for new projects so far this year and expect to continue to see opportunities to finance high quality projects.”

“Likewise, we are very excited about our recently announced acquisition of Oak Street and expect it to be immediately accretive to operating earnings,” Davis said. “The team at Oak Street has developed a very successful, high growth specialty lending platform that will be a nice strategic complement to our commercial and nationwide franchise lending businesses.”

“Our ability to successfully grow low-cost deposits continues to provide competitive advantage as we compete for new business and will be especially advantageous to us with the addition and expansion of Oak Street’s high-yielding loan portfolio,” Davis concluded. “As we look forward to the rest of 2015 and beyond, our focus remains centered on serving the financial needs of our commercial, small business, consumer and wealth management clients.”