Business Context and Reporting Period
Company: First Financial Bancorp.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2001
Headquarters: Hamilton, Ohio
First Financial Bancorp. is a financial holding company operating through thirteen wholly-owned subsidiary institutions across Ohio, Indiana, Kentucky, and Michigan. The company provides commercial and consumer banking services, including lending, deposit accounts, trust services, and insurance. As of December 31, 2001, the company employed 1,832 individuals and operated 115 offices (61 in Ohio, 49 in Indiana, 3 in Kentucky, and 2 in Michigan).
Key Financial Metrics
Note: Specific revenue, profit, cash flow, margin, debt, and liquidity figures are not provided in the text of this filing. The document incorporates the Annual Report to Shareholders by reference for these data points.
- Deposits: Total deposits across subsidiaries were reported in a table (in thousands), with First Southwestern holding the largest share at $1,045,613. Other significant depositors included Community First ($662,479) and Sand Ridge ($463,814).
- Stockholders: 4,700 common stock shareholders of record as of February 22, 2002.
- Shares Outstanding: 46,517,646 shares of Common Stock as of February 22, 2002.
- Market Value: The aggregate market value of voting stock held by non-affiliates was $744,282,000 as of February 22, 2002.
- Financial Statements: Consolidated Balance Sheets, Statements of Earnings, and Cash Flows are incorporated by reference from pages 13-16 of the Annual Report to Shareholders.
Material Changes and Corporate Actions
- Subsidiary Mergers: In November 2001, the company merged four wholly-owned subsidiaries (Union Bank & Trust Company, Peoples Bank and Trust Company, Farmers State Bank, and Vevay Deposit Bank) to form Heritage Community Bank.
- Acquisition: On December 31, 2001, Community First Bank & Trust purchased certain assets and assumed liabilities of a division of Blue River Bancshares (First Community Bank of Fort Wayne, Indiana), adding two branch locations.
- Executive Changes:
- Michael R. O'Dell retired as Chief Financial Officer on January 11, 2002, remaining as Senior Vice President and Secretary.
- C. Douglas Lefferson was promoted to Senior Vice President and Chief Financial Officer on January 11, 2002.
- James C. Hall became Executive Vice President on June 4, 2001.
- C. Thomas Murrell joined as Senior Vice President and Chief Lending Officer on April 30, 2001.
Guidance, Outlook, and Risks
Forward-Looking Statements: The filing contains forward-looking statements regarding revenue projections, earnings, and economic performance. Management explicitly states it undertakes no obligation to update these statements.
Risk Factors:
- Regulatory Environment: Operations are subject to strict regulation by the Federal Reserve, Office of the Comptroller of the Currency, and state banking authorities. Monetary policies of the Federal Reserve significantly impact earnings.
- Competition: The company faces strong competition from local and regional financial institutions, savings and loans, credit unions, brokerage firms, and major retail stores offering credit.
- Economic Conditions: Results depend on the strength of local economies in Ohio, Indiana, Kentucky, and Michigan.
- Legal Proceedings: No material pending legal proceedings were reported as of the filing date.
Investor Verification Checklist
- Verify specific revenue, net income, and earnings per share figures in the Annual Report to Shareholders (incorporated by reference, pages 1-31 for MD&A and pages 13-30 for financial statements).
- Review the Proxy Statement (dated March 15, 2002) for detailed executive compensation and director shareholdings.
- Confirm the impact of the December 31, 2001 acquisition of the Blue River Bancshares division on future growth projections.
- Monitor the transition of the Chief Financial Officer role from Michael R. O'Dell to C. Douglas Lefferson effective January 2002.
- Assess the company's exposure to local economic conditions in its four-state footprint, as noted in the risk factors.