First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Sandler O'Neill & Partners East Coast Financial Services Conference 2007
39 slides from First Financial Bancorp's conference presentation, Nov 13, 2007
Slide 1: First Financial Bancorp – Sandler O'Neill East Coast Financial Services Conference
First Financial Bancorp Sandler O'Neill & Partners, L.P. East Coast Financial Services Conference November 13, 2007 Nasdaq:FFBC EXHIBIT 99.1
Slide 2: Forward-Looking Statement Disclosure
Forward-Looking Statement Disclosure Certain statements that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the Act). In addition, certain statements in future filings by First Financial with the Securit
Slide 3: Claude E. Davis, President and CEO
Claude E. Davis President and CEO First Financial Bancorp
Slide 4: Corporate Overview
Corporate Overview Ticker - FFBC (Nasdaq) Market Value - $402 million (as of 11/5/07) Total Assets $3.3 billion
Slide 5: Strategic Plan - Timeline
Strategic Plan - Timeline Yield 6.60% Yield 6.60% Yield 6.90%
Slide 6: Our Strategy
Our Strategy
Slide 7: Our Strategy: Lines of Business
Our Strategy Lines of Business Retail Banking Commercial Banking Wealth Management
Slide 8: Our Strategy: Bank Market Strategy
Our Strategy Bank Market Strategy Organized into 8 markets Managed locally by experienced local bankers Supported centrally
Slide 9: Our Strategy: Markets
Dayton / Middletown - OH Butler / Warren County - OH Cincinnati - OH Northern Kentucky Northwest Indiana Northern Ohio North Central Indiana South Central Indiana Our Strategy
Slide 10: Demographic Profile
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Slide 11: Our Strategy: Launching Our New Brand
Our Strategy Launching Our New Brand Branding ... it's much more than our Company Name It's a demonstration of what we believe and how we help our clients be more successful. It's how our clients feel about their experience with us. Brand ties our mission statement, values, and our strategic plan to
Slide 12: Brand Promises
Brand Promises We promise to always be looking ahead. We promise to keep things simple. We promise to make doing business with us easy for our clients. We promise to be a leader - to constantly innovate and improve our systems and responsive abilities so as to serve the needs of our clients better.
Slide 13: Our Strategy: Company Goals
Our Strategy Company Goals Top-quartile performance for all stakeholders Sustained and consistent excellence Commitment to growth Effective management of all risks
Slide 14: Goals
Goals Target ratios are long-term objectives and approximate top- quartile peer performance.
Slide 15: Credit Quality
Credit Quality Credit Quality Within estimated range and stable Highlights the success of the restructured credit organization
Slide 16: Current Credit Management System
Current Credit Management System Market-based Centralized Market level
Slide 17: Credit Quality
Credit Quality Remains within a range of acceptability Will continue to actively manage New processes to ensure quality of new loans and manage existing problem credits
Slide 18: Credit Quality
Credit Quality Adjustments made to exclude the effects of loan sales
Slide 19: Acquisition Philosophy
Acquisition Philosophy Primary focus and value creation for the company is organic growth in our key markets Acquisitions can advance market position and accelerate the timing of market share compared to an organic growth only strategy Pricing must be disciplined and favorable compared to the longer
Slide 20: J. Franklin Hall, Chief Financial Officer
J. Franklin Hall Chief Financial Officer
Slide 21: Year-to-date 2007 financial performance
Year-to-date 2007 financial performance Strong commercial growth Strong net interest margin Improved credit quality Decreasing non interest expense Success To Date
Slide 22: Strong commercial growth
Strong commercial growth $238 million in year-over-year commercial loan growth - increase of over 17.5% Profitable growth with disciplined underwriting and pricing - - emphasizes full relationship Success To Date
Slide 23: Strong net interest margin
Strong net interest margin 4.07% (YTD-FTE) Improving asset mix shift Full year margin is on plan 3.90% to 3.95% Loan growth is on plan with late start Deposit remains challenging Success To Date
Slide 24: Earning Assets
Earning Assets COMMERCIAL COMMERCIAL 631651 REAL ESTATE - CONSTRUCTION 87576 REAL ESTATE - MORTGAGE 1534656 INSTALLMENT 589817 CREDIT CARD 20353 LEASE FINANCING 4305 Commercial Loans Consumer Loans Retail Mortgages Leasing Investments FFBC 0.499 0.1461 0.1992 0.0003 0.1547 2006 Average Yield 6.60% Y
Slide 25: Loan Portfolio Composition (EOP)
Loan Portfolio Composition (EOP) 35% 30% (2.2008 | September 2007 | 25% 20% 18% 10% os 0% Commercial «Commercial RE Residential RE Installment Home Equity 2
Slide 26: Growth Since 2005 by Loan Type
Indirect Installments Residential Mortgages Commercial Lending (300,000) Growth Since 2005 7%) (64%) 200,000) (100,000) 100,000 $0005) 200,000 300,000 400,000 a
Slide 27: Liability Mix
Liability Mix COMMERCIAL COMMERCIAL 631651 REAL ESTATE - CONSTRUCTION 87576 REAL ESTATE - MORTGAGE 1534656 INSTALLMENT 589817 CREDIT CARD 20353 LEASE FINANCING 4305 Non-Interest Bearing Deposits Interest Bearing Deposit Time Deposits Short-term Debt FHLB Advances Trust Preferred FFBC 13.26 40 40.78
Slide 28: Deposit Portfolio Composition (EOP)
Deposit Portfolio Composition (EOP) 50% 45% 02006 wSepternber 2007 40% 38% 30% 28% 20% 18% 10% 5% 0% Noninterest Bearing Interest Bearing Time 2
Slide 29: Non interest income
Success To Date Non interest income Diversified with improving trends Service charges on deposit accounts year-to-date performance tied to lack of deposit growth Wealth management fees on pace with slow start
Slide 30: Non Interest Income
Non Interest Income COMMERCIAL COMMERCIAL 631651 REAL ESTATE - CONSTRUCTION 87576 REAL ESTATE - MORTGAGE 1534656 INSTALLMENT 589817 CREDIT CARD 20353 LEASE FINANCING 4305 Trust and I/A fees Total service charges on deposits Gain on mortgage loan sales Bankcard interchange income Other misc income FF
Slide 31: Decreasing non interest expense
Success To Date Decreasing non interest expense Lowest core expense levels since 2004 Still room for improvement Excess capacity for planned growth Within estimated range Some additional savings were slower to occur - balanced to mitigate client service risks Identified additional savings to begin i
Slide 32: Efficiency
Efficiency 2004 Y 2005 Y 2006 Y September YTD 2007 4Q 2007 GAAP 0.6679 0.7369 0.7671 0.6733 Forecast 0.645 Long Term Target = 55 to 60%
Slide 33: FTE
FTE 1,349 4,400 4,300 4,200 ti00 1,074 4,000 900 0 0 600 SPP PP PPE EEE A OES 4
Slide 34: Improving credit quality
Success To Date Improving credit quality YTD annualized net charge-offs of 0.23% ALLL to nonperforming loans of 212% Nonperforming assets to total assets of 0.51%
Slide 35: Capital
Capital Defined within boundaries of the Capital Plan Increase dividend when sustainable Repurchase shares when prudent
Slide 36: Capital
Capital 2000 2001 2002 2003 2004 2005 2006 2007 FFBC 987.6 1847.5 1839.7 1230.7 408.6 4166 383 2000 Modified Dutch Tender Offer repurchase of 3,250,000 shares in December 2005 Estimated
Slide 37: 2007 - Keys to Success
2007 - Keys to Success Operating earnings run rate in 4Q that supports a strong 2008 Continued success in commercial lending Begin to show strength in deposit growth Continued credit quality strength Further expense reductions Faster revenue growth
Slide 38: Leverage Points
Leverage Points New metropolitan markets - success Sales forces expansion - success Efficiency - in process / performance Loan mix shift to commercial - success / timing Wealth Management - in process / timing Strong capital Funding position - dependent on deposit growth
Slide 39: Questions
Questions