Slide 1: Thirty-five consecutive years of increased shareholder dividends
Thirty-five consecutive years of increased shareholder dividends. : THFF 1
Slide 2: Forward-looking Information
Forward-looking Information This presentation contains future oral and written statements of the Company and its management, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, ob
Slide 3: Executive management team
Norman L. Lowery Chairman, Chief Executive Officer, President Norman D. Lowery Chief Operating Officer, SVP Rodger A. McHargue Chief Financial Officer, SVP Steven H. Holliday Chief Credit Officer, SVP 3
Slide 4: First Financial Corporation
First Financial Corporation Indiana’s first multi-bank holding company Established 1984 77 Locations 71 full service banking centers 6 loan production offices $4.9 Billion in Assets June 30, 2023 $1.7 Billion Trust and Assets Under Management First Financial Bank Primary subsidiary founded in 1834 O
Slide 5: Our Vision, Mission and Values
5 Our Vision To enhance our clients’ abilities to spend, save, borrow and invest. Our Mission To deliver financial solutions that are simple, fast and easy. Our Values We build strong relationships and treat each other with dignity and respect. We embrace the diversity of our customers and co-worker
Slide 6: Value Proposition
Capital to Support Strategic Growth Value Proposition Increasing Shareholder Value Experienced Management Team Proven Earnings 180+ year Operating Track Record Strong Risk Management Well-positioned Balance Sheet & Strong Asset Quality 6
Slide 7: Strong Capital
TBV $0.00 $10.00 $20.00 $30.00 $40.00 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2Q23 CAGR 6.3% Strong Capital Key Capital Ratios and Per Share Data As of June 30, 2023 0.00% 3.50% 7.00% 10.50% 14.00% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2Q23 TCE Total Risk Based 15.50%
Slide 8: History of Earnings and Dividend Growth
History of Earnings and Dividend Growth Earnings and Dividends Per Share '- 1.50 3.00 4.50 6.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1.17 1.02 1.02 1.04 1.06 2.50 0.93 0.94 0.96 0.97 0.98 0.99 0.86 0.88 0.90 0.91 0.80 0.84
Slide 9: History of Shares Repurchases
History of Shares Repurchases Announced Repurchase Amount Shares Amount Completed April 21, 2022 10% 1,243,531 In Progress ** July 21, 2021 5% 652,411 $28,335,713 3/4/22 October 29, 2020 5% 685,726 $29,300,476 6/25/21 February 3, 2016 5% 637,500 $21,677,750 11/30/20 August 25, 2014 5% 667,700 $21,62
Slide 10: Strong Asset Quality
FFIEC BHC UBPR Data Centralized committee structure We are an in-market lender to clients Disciplined underwriting Net Charge-offs 0.00% 0.04% 0.08% 0.11% 0.15% '(1,000) '- 1,000 2,000 3,000 4,000 2Q22 3Q22 4Q22 1Q23 2Q23 Dollar ($000) % Total Loans 0.05% 0.06% 0.08% 0.10% 0.01% 0.05% 0.06% 0.08% 0.
Slide 11: Better than Peer Performance
Better than Peer Performance Non-interest Income % Avg Assets '- 0.43 0.85 1.28 1.70 2016 2017 2018 2019 2020 2021 2022 1Q23 FFC Peer 0.71 0.79 0.91 0.93 0.9 0.9 0.98 0.94 0.77 0.93 0.88 1.00 1.12 1.32 1.22 1.61 0.71 0.79 0.91 0.93 0.9 0.9 0.98 0.94 Return on Assets '- 0.40 0.80 1.20 1.60 2016 2017
Slide 12: Net Interest Income: Loan Growth Driving Growth in Income
Net Interest Income Loan Growth Driving Growth in Income 2.00 3.00 4.00 5.00 6.00 '- 42,500 85,000 127,500 170,000 2017 2018 2019 2020 2021 2022 YTD 06/30/23 NII NIM 3.88 3.55 3.2 4.05 4.25 4.32 4.11 86,522 165,042 143,401 146,346 131,652 116,579 107,857 3.88 3.55 3.2 4.05 4.25 4.32 4.11 11.09% CAGR
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Balance ($000) Commercial Loans By State Total $3,127,796 Loan Portfolio ($000) Balance Percent Commercial $2,117,518 67.7% Consumer $750,234 24.0% Residential $260,044 8.3% Total $3,127,796 100% Other 25% TN 14% KY 7% IL 11% IN 43% Residential 8.3% Consumer
Slide 14: Consumer Loan Portfolio
Consumer Loan Portfolio Total Loans $750,234,000 98.7% Secured Consumer Loans 57.0% ≥ 701 FICO 23.0% 651 to 700 15.0% 600 to 650 5.0% < 600 (Includes No Score) 67.89% Indirect Auto ($509,317,000) 13.4% New ($68,238,868) 86.6% Used ($441,078,132) Asset Quality 30 – 89 day YTD Average Past Due 1.88% C
Slide 15: Mortgage Loan Portfolio
Mortgage Loan Portfolio Total Loans $260,044,000 49.7% YTD Production Sold • Average New Production LTV 82.98% • Average New Production FICO 723 • Primarily in-market lender Portfolio • Underwritten to FHLMC Guidelines • 85.0% with credit scores > 650 • Average Amortized LTV 64.6% Asset Quality • YT
Slide 16: Commercial Real Estate Loan Mix
Commercial Real Estate Loan Mix As a % of CRE Residential/Multi-family $440,616,147 Commercial Income Property $309,578,799 Owner Occupied CRE $69,749,180 NOO Retail $89,588,555 Hotel/Motel $69,834,650 Residential & Non-Residential Property Management $51,231,759 Lessors of Other Real Estate Propert
Slide 17: Commercial & Industrial Loan Mix
Commercial & Industrial Loan Mix as a % of Total C & I Loans Agriculture 23.48% $237,791,149 Construction 7.62% $77,112,755 Health Services 7.07% $71,630,653 Banking & Financial Services 4.77% $48,308,509 Floor Plans & Auto Industry 3.87% $39,140,229 Retail Eating Establishments 1.37% $13,380,150 Ot
Slide 18: Commercial Production Pipeline
Commercial Production Pipeline Production YTD 6/30/2023 REGION Pipeline New Money Central $144,805,968 $92,433,338 West $211,410,756 $159,023,347 Southern $137,993,232 $94,118,214 Mid-South $268,152,506 $168,159,570 Indy LPO $122,942,831 $102,872,494 Total $885,305,293 $616,606,963 Current Pipeline
Slide 19: Deposit Mix: Strong Core Deposit Franchise
Deposit Mix Strong Core Deposit Franchise 0.00% 0.27% 0.55% 0.83% 1.10% 2011 2013 2015 2017 2019 2021 2023 YTD 1.03% 0.38% 0.20% 0.36% 0.56% 0.37% 0.25% 0.19%0.16%0.17% 0.25% 0.38% 0.63% Cost of Deposits BHC UBPR Interest Expense '- 0.35 0.70 1.05 1.40 2016 2017 2018 2019 2020 2021 2022 Q123 YTD FFC
Slide 20: Disciplined Expense Management
Disciplined Expense Management 0 32500 65000 97500 130000 2016 2017 2018 2019 2020 2021 2022 2Q23 YTD $63,667 $126,023 $117,406 $112,758 $104,348 $91,289 $90,308 $88,747 45.0 51.0 57.0 63.0 69.0 2016 2017 2018 2019 2020 2021 2022 1Q23 FFC Peer 61.95 59.84 60.88 61.22 61.65 61.22 62.21 68.42 60.18 59
Slide 21: Trust and Asset Management
Trust and Asset Management $1.7 Billion Trust Assets Under Management Trust Services include: • Professional Farm Management • Trust Administration • Estate Administration • Retirement Services • Corporate Trust Services Trust & Asset Mgmt 2022 YTD 2023 Revenue ($000) 5,155 2.502 Income before Tax 1
Slide 22: Well-positioned for sustainable and profitable growth
Well-positioned for sustainable and profitable growth • Diversified business model with strong risk management • High-caliber team members focused on customer service and technology optimization • Expanding presence in larger growth markets • Commercial banking focus with quality core deposits • Dem
Slide 23: 3-Year Financial Highlights
2020 2021 2022 2Q23 YTD Net Interest Income 146,346 143,401 165,042 86,522 Provision 10,528 2,466 <2,025> 3,600 Non-interest Income 42,476 42,084 46,716 19,828 Non-interest Expense 112,758 117,406 126,023 63,667 Net Income 53,844 52,987 71,109 31,967 Earnings Per Share (diluted) 3.93 4.02 5.82 2.66
Slide 24: Thank You!
Norman L. Lowery Chairman, Chief Executive Officer, President lowerynl@first-online.com 812.238.6487 Thank You! Rodger A. McHargue Chief Financial Officer, SVP rmchargue@first-online.com 812.238.6334 Norman D. Lowery Chief Operating Officer, SVP lowerynd@first-online.com 812.238.6185 Steve Holliday