First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Presentation (February 2010)
36 slides from First Financial Bancorp's investor presentation, Feb 24, 2010
Slide 1: First Financial Bancorp Investor Presentation
fiRST first financial bancorp First Financial Bancorp Investor Presentation February 2010
Slide 2: Forward-Looking Statement Disclosure
fiRST Forward-Looking Statement Disclosure first financial bancorp ‘This presentation shouldbe readin conjunction with the consolidated financial statements, notes and tables in First Financial Bancorp’s most recent Anaual Report ‘on Form 10-K for the year ended December 31, 2008, as well 2s financi
Slide 3: Strong operating fundamentals
= Strong operating fundamentals have produced positive results throughout the recessionary period = Strong market share in strategic operating markets = Low risk balance sheet with significant liquidity sources = Capital significantly exceeds “well-capitalized” = Solid organic loan and deposit growt
Slide 4: Corporate Overview
fiRST first financial bancorp Overview Corporate Overview First Financial Bank, N.A. founded in 1863 eae ‘Total Deposits: $54 billion Business Units 118 banking centers in the four state regions of — Ratall Banking Ch, cana, Kentucly and Michigan - i Trading Statistics Commercial Banking sia = Wealt
Slide 5: Strategic Rebuilding & Reorganization Plan
= 16 bank/thrift acquisitions from 1989 through 1999 resulted in multiple bank charters and brand identities = Established Strategic (Rebuilding & Reorganization) Plan in March 2005 Consolidated and streamlined company to establish one charter and one brand identity Restructured credit process Restr
Slide 6: Selectively Acquiring Strategic Assets
fiRST first financial bancorp Selectively Acquiring Strategic Assets Future = Supplements organic growth strategy in core markets = Transactions met all internal criteria Irwin Successfully (FDIC) tegrate recent . i i transactions and Core philosophy and strategy remains unchanged September 18, 2009
Slide 7: Acquisitions consistent with conservative strategy
= Consistent with the company’s stated conservative strategy = Acquisitions are compelling relative to cost and time to build profitable de novo banking centers = Adds banking centers in key areas that will leverage the First Financial brand to increase market share - Compliments existing locations
Slide 8: Acquisitions provided market expansion
fiRST first financial bancorp = Acquisitions provided market expansion opportunities in key locations Added 39 banking centers in strategic operating markets Solidifies position in key markets and accelerates market expansion strategy by several years 4 largest banking center network in Cincinnati M
Slide 9: Peoples Community Bank and Irwin Union Bank transactions
Peoples Community Bank Irwin Union Bank & Trust / Irwin Union FSB. + Acquited 19 banking centers in Cincinnati MSA ‘+ th largest banking center network in the Cincinnati MSA + Estimated $335 milion in fair value ‘+ FDIC stated threshold of $190 milion, no frst loss, postion + FDIC assumes 80% of los
Slide 10: Integration of acquisitions
= Integration of Peoples Community Bank acquisition completed — No significant issues — Deposit client retention rates higher than expected = Irwin integration expected to be completed by the end of 1Q-10 = Developed a dedicated covered asset and loss share management team comprised of credit, legal
Slide 11: Top-quartile performance for all stakeholders
= Top-quartile performance for all stakeholders = Sustained and consistent excellence = Commitment to growth = Effective management of all risks ‘Another step on the path to success 1
Slide 12: Client Intimate Strategy
Client “Intimate” Strategy — Strategic Focus: build long-term relationships with clients by identifying and meeting their financial needs Target clients — Individuals and small / mid-size private businesses located within the regional markets we serve Ohio, Indiana, Kentucky, Michigan — 10 markets s
Slide 13: Growth Plan
fiRST Growth Plan first financial bancorp = Primary focus and value creation is through organic growth in key regional markets — 2009 expansion included opening additional banking centers, including growth within strategic operating markets + Significant advancement in key areas with the addition of
Slide 14: Common Equity Offerings
fiRST first financial bancorp Common Equity Offerings = Successfully completed two common equity offerings = February 2010 — Issued 6.4 million shares at $15.14 per share — Net proceeds of approximately $91 million after deducting underwriting discounts, commissions and estimated offering expenses —
Slide 15: Capital
fiRST Capital first financial bancorp December 31, 2009 = Excess consolidated capital of $390.7 million over regulatory minimum required [Leverage Rato level Tier 1 Capital Ratio = Based on ‘“well-capitalized” requirements, | [Tota! Risk-Based Capital Ratio can support bank-level asset growth up to
Slide 16: Financial Information
fiRST first financial bancorp Financial Information
Slide 17: Fourth Quarter 2009 Review
fiRST first financial bancorp Fourth Quarter 2009 Review Strong earnings performance driven by recent acquisitions 4Q-09 EPS of $0.25 (core earnings of $0.37 per share excluding non-recurring items) versus 4Q-08 EPS of $0.06 Pre-tax pre-provision earnings up significantly to $35.7 million versus $12
Slide 18: Strong Earnings
fiRST first financial bancorp Strong Earnings Earnings Per Diluted Common Share - GAAP tos] 22 ay 22 [| ze at ss so. om ] ea LT U1 a Oo 7» Non-Interest Income Efficiency Ratio 0% 79.0% 72.3%" 75% + 65.7% To 663% 68.5% 63.1% Nene oe Opig Ree 7% 60% 45% 30% 15% 0% FY-2008 FY-2005 FY-2005 FY-2007 FY-20
Slide 19: Net Interest Margin (FTE)
Net interest Margin (FTE) oy ae i ee = a eS Yield and Cost voor 2087 ager aaer nae naek nek sae aoe 2a 20.8 Exning Asset Yield @Liabiity Cost ‘Another step on the path to success 9
Slide 20: Credit Quality Review
fiRST Credit Quality Review ' first financial bancorp December 31, 2009 * Credit quality trends remained relatively stable and within expected range throughout the early part of the economic downturn — 40% of total loans covered under FDIC loss share agreements — Reflects discipline of originating l
Slide 21: Loan Composition
fiRST first financial bancorp Loan Composition Covered Loans - $1.9 billion December 31, 2009 - $4.8 billion (at bear far valve) 2% 3% 2% % 27% 16%, 3% Uncovered Loans - $2.9 billion 4% 11% 28% 1% © Commercial 45% © Commercial Real Estate © Residential Real Estate © Home Equity © Installment ‘Anothe
Slide 22: Loan Detail
fiRST Loan Detail first financial bancorp December 31, 2009 Total Uncovered Loans: $2,893 million BCommercial Real Estate‘ |LCommercial & Industrial HELO [Residential Real Estate instalment & Other 35% 7% 1 Non-Owner Occupied - $776.9 milion 1B Owner Occupied - $462.3 million Fan na comeing ageenaii
Slide 23: Credit Quality Comparison
fiRST first financial bancorp Credit Quality Comparison ' NPLs / Loans NCOs / Average Loans & Leases Reserves / NPLs Texas Ratio 1D pees apts spuny ba ny enn ee ese ie St eae 1D pewcen erase emery cooly ope conte bane pra One Fay sens Oe | clades loans covered by FDIC oss sharing agreements sii re a
Slide 24: Investment Portfolio
fiRST Investment Portfolio first financial bancorp December 31, 2009 (Sin thousands, excluding book price and market valve) Wot ] Book | Book | Book | December 31, 2008] Pre-Tax Total_| Value _| Yield | Price | Market Valve | Gaini(Loss) [UST Notes & Agencies 6.0% 34,478) 423 | 9982 10205] 755 IcMos
Slide 25: Sector Allocation
fiRST first financial bancorp Sector Allocation MBS (Agency) jg Agency Preferred 0% _ = e (CMOs (Private) _/ Municipal other * 4% (CMO (Agency) UST.Notes& 17% 0% ‘Agencies 6% * Other includes regulatory stock Investment Portfolio December 31, 2009 Credit Quality Investment Grade 35% ‘ther investment
Slide 26: Deposit Activity
fiRST first financial bancorp Deposit Activity Fourth Quarter 2009 Deposit Activity Expansion Western Markets (Sin thousands) Total Deposits at 09/30/08 End of Period Transaction & Savings $ 3,096,110 Time 2,058,877 Broker 680,997 ear Mori Total Deposits (Acquisitions) Deposits aisiaiathg (e9.628) |
Slide 27: Liability Mix
fiRST Liability Mix & aie tisodel beneore Deposit Composition December 31, 2009 September 30, 2009 14% 14% 42% 46% 25% 23% © ODA 19% @ Now 17% @ Savings a Time * $5.4 billion in deposits * $5.8 billion in deposits = WAR = 1.23% = WAR = 1.26% ‘Another step on the path to success Ea
Slide 28: Deposit Composition
fiRST first financial bancorp Deposit Composition Average End of Period Liability Mix Deposit Portfolio Composition ‘id 1 i - ; z i § § :| E E EH H on B ai =m = 2009 ‘BNoninterest Bearing Deposit [BTime Deposits ‘aNonimerest-Bearing Deposits” @ Interest Bearing Deposits © Tine Deposits Noten iden ‘A
Slide 29: Borrowed Funds
fiRST first financial bancorp Borrowed Funds (Sin thousands) September 30, 2009] Additions | Maturities | December 31, 2009 Short Term Borrowings: Federal Funds Purchased and Securities Sold Under Agreements to Repurchase s 35,763 ise7}s - |S 37,430 Federal Home Loan Bank Advances. 65,000 =] (65,000
Slide 30: 2010 outlook
= Net interest margin between 4.45% and 4.55% — Decline from 4Q-09 due to expected and intentional runoff of higher yielding acquired loans = Earning assets expected to decline 7% to 9% — Modest organic loan growth in core markets — Continued runoff in non-core markets = Continued run-off of non-cor
Slide 31: Leadership
fiRST first financial bancorp Leadership
Slide 32: Leadership
fiRST first financial bancorp Leadership Claude E. Davis President & Chief Executive Officer Claude E. Davis joined First Financial in 2004 as President, Chief Executive Orficer, and a member of the Board of Directors. Mr. Davis also serves as Chairman of the Board of Directors of First Financial Ba
Slide 33: Leadership
fiRST first financial bancorp Leadership Al Roszczyk Indiana Regional President Al Roszezyk joined First Financial in June 2009. Mr. Roszczyk oversees the company's Indiana markets. He has over 25 years of banking experience with a strong background in executive management and leadership as well as
Slide 34: Leadership
fiRST first financial bancorp Leadership John Sabath ‘Senior Vice President & Chief Risk Officer John Sabath joined First Financial in 2005 as Regulatory Risk Manager. Mr. Sabath was then promoted to Senior Risk Officer and First Vice President, and assumed his current position in 2008, He is respon
Slide 35: About First Financial Bancorp
fiRST first financial bancorp About First Financial Bancorp First Financial Bancorp is a Cincinnati, Ohio based bank holding company with $6.7 billion in assets. Its banking subsidiary, First Financial Bank, N.A., founded in 1863, provides retail and commercial banking products and services, and inv
Slide 36: Another step on the path to success
fiRST first financial bancorp Another step on the path to success FEBC NASDAg
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