First Financial Bancorp of Hamilton, Ohio, said Thursday that fourth-quarter earnings would fall well below analysts' estimates because of an increase in its loan-loss provision and continued charges relating to a corporate restructuring and rebranding.
The $3.5 billion-asset company said it expects to earn between one cent and three cents this quarter; analysts polled by Thomson Financial had estimated earnings per share of 15 cents. The company earned 31 cents a share last quarter, mainly as a result of gains on the sale of 10 branches.
First Financial said it expects net chargeoffs in the quarter to be between $10 million and $10.4 million and its provision expense to be between $4.9 million and $5.3 million, up from $2.9 million last quarter.
It said it plans to take a charge of about $7 million to cover costs associated with its technology conversion, asset writeoffs related to the rebranding of its three banks under one name, curtailment charges for its defined benefit pension plan, and employee-related exit and hiring costs. Earlier this year the company announced it was eliminating about 200 positions to trim expenses.
Claude E. Davis, First Financial's president and chief executive, said Thursday in a press release that he expects the restructuring to begin paying dividends in 2007. He predicted 2007 earnings per share of $1 to $1.10.
