First Financial Bancorp in Hamilton, Ohio, said Friday that it earned $12.1 million in the third quarter, down 16% from the year-earlier period. Earnings per diluted share fell 2 cents, to 31 cents.
The $3.3 billion-asset company blamed a decrease in net interest income and higher overhead. Net interest income fell 7%, to $30.8 million, a result of First Financial's decisions to sell $38 million of problem loans during the quarter, get out of the indirect lending business, and sell conforming mortgage loan production on the secondary market. Higher deposit costs also ate into net interest income.
Its noninterest expense increased 13%, to $4.6 million, due to higher employment, marketing and information technology costs. First Financial sold 10 of its branches in the third quarter and earlier this year eliminated about 200 jobs. It also recently rebranded its three banks under the First Financial Bank name and launched a marketing campaign aimed at building its retail business.
Noninterest income rose 117%, to $30.4 million, but the numbers were skewed by a $12.5 million gain on the sale of 10 branches and a $2.2 million gain on the sale of $38 million of problem loans. Excluding these items, noninterest income was flat.
