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Barclays Maintains an 'Equalweight' on First Financial Bancorp (FFBC); 3Q11 EPS Preview: Margin Headwinds Looking Out

October 7, 2011 1:28 PM EDT
FFBC Hot Sheet
Rating Summary:
    0 Buy, 9 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Barclays maintains an 'Equalweight' on First Financial Bancorp (NASDAQ: FFBC) price target of $20.00.

Barclays analyst says, "We expect FFBC to report 3Q11 EPS of $0.27 versus the $0.27 consensus. Our EPS estimate incorporates $3mn ($0.03) in one-time integration costs associated with its Liberty Savings branch acquisition. To reflect anticipated net interest margin (4.62% at 2Q11) headwinds from the Fed's recent policy stance we lowered our 2012 EPS estimate by $0.05 to $1.30."

"FFBC is a well-run organization with a sound growth strategy centered on
transitioning its business and customer mix toward faster growing metropolitan markets within its Midwestern footprint. While its two recent branch deals (Liberty Savings and Flagstar) and variable dividend (100% total payout) signal it is becoming more proactive on the capital redeployment front, loan demand in its strategic markets remains low and competition is intensifying. Moreover, the Fed's decision to keep rates at exceptionally low levels for an extended period is likely to create NIM headwinds."

For more ratings news on First Financial Bancorp click here and for the rating history of First Financial Bancorp click here.

Shares of First Financial Bancorp closed at $15.55 yesterday, with a 52 week range of $12.84-$19.57.


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