A reduced reimbursement from regulators weighed on quarterly results at First Financial (FFBC) in Cincinnati.
Earnings at the $6.4 billion-asset company fell 19% from a year earlier, to $13.8 million, or 24 cents a share.
Net interest income fell 12% from the first quarter of 2012, to $58.7 million. The net interest margin compressed 47 basis points from a year earlier, to 4.04%.
Noninterest income fell 16% from a year earlier, to $26.7 million, primarily because of a lower payout from the Federal Deposit Insurance Corp. as part of agreements to share losses on loans that First Financial bought in 2009 from two failed institutions: Peoples Community Bank in West Chester, Ohio, and Irwin Union Bank in Louisville, Ky.
Noninterest expense fell 5% from a year earlier, to $53.1 million.
First Financial's loan portfolio grew 7% from a year earlier, to $3.2 billion. Net chargeoffs fell 61% from a year earlier.