First Financial Corporation · NASDAQ:THFF
First Financial — Investor Presentation (September 2021)
27 slides from First Financial's investor presentation, Sep 8, 2021
Slide 1: 33 consecutive years of increased shareholder dividends
: THFF 33 consecutive years of increased shareholder dividends
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
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
Slide 4: Indiana's first multi-bank holding company
Indiana’s first Multi-bank holding company Established 1984 First Financial Bank Primary subsidiary founded in 1834 Oldest national bank in Indiana 5th oldest national bank in the U.S. Terre Haute, Indiana Headquarters 85 banking locations 81 banking centers 4 loan production offices $4.8 billion in
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
6 Capital to Support Strategic Growth Increasing Shareholder Value Experienced Management Team Proven Earnings 180+ year Operating Track Record Strong Risk Management Well-positioned Balance Sheet & Strong Asset Quality Value Proposition
Slide 7: Covid-19 Impact
7 • $321.8 million commercial credit requests granted, $54.0 million remaining ✓ Most 90-day interest only • $8.7 million mortgage credit requests granted, $0.6 million remaining • $13.0 million consumer credit requests granted, $2.75 million remaining • Initially, 12.9% of loan portfolio with some
Slide 8: Covid-19 Impacted Industries
Hotels • 19 relationships with $81.99 million outstanding (4.71% of Commercial Loans) • 15 transactions currently reviewed by Debt Relief Review Committee • 5 remaining under a debt relief plan totaling $23.3 million • Average Portfolio LTV at origination is 75% Restaurants • 150 transactions with $
Slide 9: Strong Capital
TBV $0.00 $10.00 $20.00 $30.00 $40.00 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 CAGR 8.3% • Total Risk Based 17.03% • Tier 1 Risk Based 15.78% • Tier 1 Leverage 10.72% • Book Value $45.08 • Tangible Book Value $38.43 Key Capital Ratios and Per Share Data as of June 30, 2021 9 0.00% 3.50
Slide 10: History of Earnings and Dividend Growth
Earnings and Dividends Per Share '- 1.00 2.00 3.00 4.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1.041.021.02 2.50 0.990.980.970.960.940.930.910.900.880.860.840.800.750.650.600.560.51 3.93 3.803.80 2.38 3.12 2.35 2.55 2.37 2.48 2.83 2.1
Slide 11: Strong Asset Quality
11FFIEC BHC UBPR Data • Centralized committee structure • We are an in-market lender to clients • Disciplined underwriting Net Charge-offs -0.01% 0.03% 0.07% 0.11% 0.15% '(200) '- 200 400 600 800 2Q20 3Q20 4Q20 1Q21 2Q21 Dollar ($000) % Total Loans -0.01% 0.03% 0.01% 0.03%0.03% 0.00% 0.45% 0.90% 1.3
Slide 12: Better than Peer Performance
Non-interest Income % Avg Assets 12 '- 0.43 0.85 1.28 1.70 2015 2016 2017 2018 2019 2020 1Q21 FFC Peer 0.980.98 0.90.90.930.910.93 0.84 1.00 1.12 1.32 1.22 1.61 1.33 Return on Assets '- 0.40 0.80 1.20 1.60 2015 2016 2017 2018 2019 2020 1Q21 FFC Peer 1.35 0.97 1.19 1.22 0.95 0.92 0.92 1.26 1.25 1.42
Slide 13: Loan Growth Driving Growth in Income
2.00 3.00 4.00 5.00 6.00 '- 37,500 75,000 112,500 150,000 2015 2016 2017 2018 2019 2020 YTD 6/30/21 NII NIM 3.25 4.05 4.254.32 4.114.044.04 70,541 146,346 131,652 116,579 107,857 104,973 104,507 10.67% CAGR 13 $’s in (000’s) Net Interest Income Loan Growth Driving Growth in Income
Slide 14: Diversified Loan Portfolio
14 Other 21% TN 10% KY 8% IL 13%IN 48% Commercial Loans By State Loan Portfolio Residential $349,161 Consumer $477,633 Commercial $1,741,619 Balance ($000) Total $2,568,713 Loan Portfolio ($000) Balance Percent Commercial 1,741,619 67.8% Consumer 477,633 18.6% Residential 349,161 13.6% Total 2,568,7
Slide 15: Consumer Loan Portfolio
Total Loans $477,633,000 98.56% Secured Consumer Loans 46.13% ≥ 700 FICO 22.58% 650 to 699 20.76% 600 to 649 8.77% < 600 1.77% No Score 76.90% Indirect Auto 17.30% New 82.70% Used Asset Quality 30 – 89 day past due 1.02% NPAs .43% 15 Credit Card 1% Other 3% Indirect Auto 77% Direct Auto 19% Consumer
Slide 16: Mortgage Loan Portfolio
Adjustable 58% Fixed 42% Total Loans $349,161,000 75.61% YTD Production Sold • Primarily in-market lender Portfolio • Underwritten to FHLMC Guidelines • 84.90% with credit scores > 650 • Average LTV 60.78% Asset Quality • 24 monthly average past due 2.35% 16 Mortgage Loan Portfolio
Slide 17: Commercial Real Estate Mix
Non-owner Occupied CRE as % of Total Commercial Real Estate Loans Residential Multi-family 20.09% Retail 11.53% Hotel 10.91% Student Housing 10.20% Property Management 8.50% Medical Office 4.00% Other 10.13% 17 Owner Occupied CRE $170.959 MM Residential Multi-family $151.040 MM NOO Retail $86.643 MM
Slide 18: Commercial loans by industry
18 Agriculture 25.88% $ 248,836,431 Construction 7.61% $ 73,193,409 Health Services 7.15% $ 68,774,827 Banking & Financial Services 4.32% $ 41,572,057 Floor Plans 2.37% $ 22,742,069 Retail Eating Establishments 4.70% $ 45,194,686 Other Retail + Convenience 5.73% $ 55,044,049 Transportation 3.69% $ 3
Slide 19: Strong Core Deposit Franchise
19 Brokered CDs 0.4% Non-interest bearing 19.1% Time 16.0% Demand and Savings 64.5% Deposit Mix 0.00% 0.23% 0.45% 0.68% 0.90% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD 0.23% 0.36% 0.56% 0.37% 0.25% 0.17%0.16%0.19% 0.25% 0.38% 0.63% 0.87% Cost of Deposits BHC UBPR Interest Expen
Slide 20: Disciplined Expense Management
Non-interest Expense 0 30000 60000 90000 120000 2015 2016 2017 2018 2019 2020 2Q21 $55,635 $112,758 $104,348 $91,289$88,747$90,308 $98,398 2.92% CAGR 20 Efficiency 45.0 51.25 57.5 63.75 70.0 2015 2016 2017 2018 2019 2020 1Q21 FFC Peer 58.75 61.2261.6561.22 62.21 68.42 69.81 62.29 59.87 61.23 58.43 6
Slide 21: Trust and Asset Management
21 $1.4 billion Trust assets under management Trust Services include: • Professional Farm Management • Trust Administration • Estate Administration • Retirement Services • Corporate Trust Services 2020 YTD 2021 Revenue ($000) 5,241 3,175 Income before Tax 1,431 1,075 Trust and Asset Management
Slide 22: Hancock Bancorp Acquisition
Transaction Highlights: • Transaction Value $31,350,000 • Price / Tangible Book Value 108% • Price / LTM Earnings 13.2 x • Price / 2021 E Earnings 23.6 x • Core Deposit Premium .50% • TBV Payback Period 3 years • Day 1 TBV Dilution at Close -2.9% 22 Hancock Bancorp Acquisition
Slide 23: Hancock Bancorp Acquisition
Hancock Bancorp Acquisition
Slide 24: Hancock Bancorp Acquisition
• Cost Saves 39% • Expected Close 4Q21 • System Conversion 4Q21 Hancock Bancorp Acquisition
Slide 25: Key Investment Points
25 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 •
Slide 26: 3 Year Financial Highlights
2018 2019 2020 2Q 2021 Net Interest Income 116,579 131,652 146,346 70,541 Provision 5,768 4,700 10,528 <1,744> Non-interest Income 38,206 38,452 42,476 20,225 Non-interest Expense 91,289 104,348 112,758 55,635 Net Income 46,583 48,872 53,844 29,491 Earnings Per Share (diluted) 3.80 3.80 3.93 2.19 To
Slide 27: Thank You!
Norman L. Lowery Chairman, Chief Executive Officer, President 812.238.6487 / lowerynl@first-online.com Norman D. Lowery Chief Operating Officer, SVP 812.238.6185 / lowerynd@first-online.com Thank You! Rodger A. McHargue Chief Financial Officer, SVP 812.238.6334 / rmchargue@first-online.com Steven H.
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