First Financial Bancorp has reported a first quarter 2008 net income of $7.3 million or $0.20 in diluted earnings per share, down from $8.4 million or $0.22 in diluted earnings per share posted during the comparable quarter of 2007.
Return on average assets for the quarter was 0.89% compared to 1.04% for the same quarter in 2007 and return on average shareholders’ equity was 10.63% for the quarter compared to 11.94% for the corresponding period in 2007.
Net interest income in the quarter was $28.2 million compared to $30.4 million in the first quarter 2007, a decrease of $2.2 million or 7.1%. First quarter 2008 net interest margin of 3.78% decreased 34 basis points from 4.12% for the comparable quarter in 2007.
According to First Financial, the decline in net interest income and margin is primarily a result of actions by the Federal Reserve to address the weakening economy, including the consumer mortgage crisis, by lowering the federal funds rate by 300 basis points over the past seven months, and the resulting impact on our asset sensitive balance sheet.
Claude Davis, president and CEO of First Financial Bancorp, said: This is a unique and challenging time for the financial services industry, and it is likely to remain so for the foreseeable future. We continue to manage the company from a strong balance sheet and capital position, growing loans in a prudent fashion and proactively managing credit quality.