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First Financial Bancorp posted second-quarter earnings that were down slightly from a year ago, but which beat analysts’ estimates.

The bank posted net income of $7.8 million, or 21 cents per share, compared to $8.2 million, or 21 cents per share in second-quarter 2007. But analysts had expected profit of just 18 cents per share.

First Financial (NASDAQ: FFBC) has steered clear of most of the loan quality problems that have plagued the banking industry. Its loan quality ratios have held steady for the past five quarters. Its nonperforming loans to total loans inched down from 0.59 percent a year ago and 0.58 percent in the first quarter to 0.57 percent in the second quarter. The company credited its strong underwriting policies and move away from some types of consumer lending a few years ago.

Net interest income was $28.4 million, versus $29.6 million a year ago. Net interest margin was 3.72 percent, compared to 3.97 percent a year ago.

The stock responded favorably, gaining 67 cents, or 6 percent, to $11.86 in morning trading.

For the first half, Cincinnati-based first Financial reported net income of $15.1 million or 40 cents per share, compared to $16.6 million or 43 cents per share for the same period in 2007 payday loan.

"We continue to manage the company through this difficult time for the banking sector, and the economy in general, by remaining focused on credit quality, balance sheet management, and capital," said Claude Davis, president and chief executive officer, in a news release.

Total nonperforming assets were $19.1 million, up $1.5 million year over year. Loan loss provisions were $29.6 million for the first half, versus $28.1 million for the first six months of 2007.

First Financial is the Dayton area’s sixth largest bank with $1.24 billion in local deposits and 32 local offices.