First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q1 2024 Earnings Presentation
44 slides from First Financial Bancorp's earnings presentation, May 14, 2024
Slide 1: Investor Presentation First Quarter 2024
investor presentation • First Quarter 2024 Exhibit 99.1
Slide 2: Forward looking statements disclosure
forward looking statements disclosure 2 Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “ex
Slide 3: Forward looking statements disclosure
forward looking statements disclosure 3 • financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services
Slide 4: Presentation contents
About First Financial Bancorp Financial Performance Appendix presentation contents 4
Slide 5: Overview
overview Commercial C&I, O-CRE, Treasury, ABL, ESOP, Equipment Finance, Bannockburn Global Forex Retail Banking Consumer, Small Business Mortgage Banking NASDAQ: FFBC Headquarters: Cincinnati, Ohio Founded: 1863 Banking Centers: 130 Employees: 2,116 Market Cap (3/31/24): $2.1B Dividend Yield (3/31/2
Slide 6: Key investment highlights
key investment highlights • Proven & sustainable business model spanning 160 years • Premier Midwest franchise with top quartile performance • Consistent profitability – 134 consecutive quarters • High quality balance sheet & robust capital position (11.67% CET1) • Prudent risk management & credit c
Slide 7: Consistent best-in-class earnings
consistent best-in-class earnings 7 Return on Average Assets 1 KRX calculated as the top quartile of the current 50 KRX constituents. Source: S&P Capital IQ Pro 1-Year 3-Year 2Q18-1Q24 (since merger) 78% Percentile Rank KRX Top Quartile1 1.38% 84% Percentile Rank 1.17% 1.37% 1.27% 87% Percentile Ran
Slide 8: Consistent better than market earnings growth
consistent better than market earnings growth 8 Earnings Per Share Growth 1 KRX calculated as the median of the current 50 KRX constituents. Source: S&P Capital IQ Pro 1-Year 3-Year 5-Year 10-Year 20-Year 67% Percentile Rank 4% 4% 48% Percentile Rank 76% Percentile Rank 6% 3% 64% Percentile Rank 5%
Slide 9: Complementary market centric strategies
Note: Headquarters loan and deposit balances include special assets, loan marks, and other out of market and corporately held balances. Loan balances exclude PPP balances. complementary market centric strategies Loans $3.3B / Deposits $2.9B Loans $1.8B / Deposits $5.2B Loans $4.0B / Deposits $5.1B L
Slide 10: Key company brands
key company brands Full suite of diversified financial products for individuals and businesses $17.6 Billion Assets $13.5 Billion Deposits 19.11% Adjusted MRQ ROATCE Diversified financial holding company with comprehensive and innovative solutions for individuals and businesses Wealth & asset manage
Slide 11: Diversified lines of business
The number of Trust & Investments and RPS relationships are updated as of 9/30/22. All other data as of 12/31/22. diversified lines of business 11
Slide 12: Revenue growth strategies
revenue growth strategies Distribution Technology Talent Product & Pricing • Regional pricing strategy • Treasury Management product investments • Investments in Product Management DefinedModels Enterprise Data Management • Investment in data warehouse • Enabling data as a strategic asset • Connecti
Slide 13: Presentation contents
About First Financial Bancorp Financial Performance Appendix presentation contents 13
Slide 14: 1Q 2024 results
1Q 2024 results 134th Consecutive Quarter of Profitability 14 • EOP assets increased $66.3 million compared to the linked quarter to $17.6 billion • EOP loans increased $271.9 million compared to the linked quarter to $11.2 billion • Average deposits increased $76.3 million compared to the linked qu
Slide 15: 1Q 2024 highlights
1Q 2024 highlights • Quarterly earnings driven by strong net interest margin • Adjusted1 earnings per share – $0.59 • Adjusted1 return on assets – 1.30% • Adjusted1 pre-tax, pre-provision return on assets – 1.85% • Adjusted1 return on average tangible common equity – 19.11% • Purchased Agile Premium
Slide 16: 1Q 2024 highlights
1Q 2024 highlights • Adjusted1 noninterest income of $51.7 million, an 8.5% increase from fourth quarter • Wealth management and foreign exchange income increased from the linked quarter • Leasing business revenue of $14.6 million, an increase of $1.7 million, or 13.5%, compared to linked quarter •
Slide 17: Adjusted net income
adjusted net income1 17 The table below lists certain adjustments that the Company believes are significant to understanding its quarterly performance. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non
Slide 18: Profitability
profitability 18 Return on Average Assets Return on Avg Tangible Common Equity Diluted EPS 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. Efficiency Ratio $0.53 $0.60$0.66$0.69$
Slide 19: Net interest income & margin
net interest income & margin 19 Net Interest Margin (FTE) 1Q24 NIM (FTE) Progression Net Interest Income All dollars shown in millions $143.9 $147.7$150.9$154.2$155.0 $4.0 $5.2 $4.5 $5.0$4.3 $148.7 $153.8 $155.5 $159.2$159.3 1Q244Q233Q232Q231Q23 Basic NII Loan Fees 3.99% 4.12%4.21% 4.34%4.43% 0.11%
Slide 20: Liquidity and beta profile
liquidity and beta profile 20 1Historical data adjusted for the merger with MainSource Financial Group, Inc. using the sum of the individual components. Historical Deposit and Loan Betas1 Total Deposit Beta Loan Beta Liquidity Trends 24% 33% 43% 3Q15-2Q19 Fed Cycle (+225bps) 3Q19-4Q21 Fed Cycle (-22
Slide 21: Noninterest income
noninterest income 21 Noninterest Income 1Q24 Highlights All dollars shown in thousands • Total fee income 23.8% of net revenue • Foreign exchange income of $10.4 million; increased $1.7 million, or 19.5%, from the linked quarter • Leasing business income of $14.6 million; increased $1.7 million, or
Slide 22: Noninterest expense
noninterest expense 22 Noninterest Expense 1Q24 Highlights All dollars shown in thousands Salaries and benefits $74,037 60% Occupancy and equipment $9,611 8% Data processing $8,305 7% Professional services $2,268 2% Intangible amortization $2,301 2% Leasing business expense $9,754 8% Other $16,079 1
Slide 23: Average balance sheet
average balance sheet 23 Average Loans Average Securities Average Deposits All dollars shown in millions 1 Includes loans fees and loan accretion $11,066$10,751$10,624$10,514$10,373 7.32%7.29% 7.18% 7.03% 6.63% 1Q244Q233Q232Q231Q23 Loans Loan Yield 1 $13,279$13,203$12,787$12,714$12,812 2.30%2.08%1.7
Slide 24: Deposits
deposits 24 Deposit Product Mix (Avg) 1Q24 Average Deposit Progression All dollars shown in millions Total growth/(decline): $76.3 million -$189.0 -$16.1 -$35.9 $198.4 $186.0 -$3.2 -$63.9 Noninterest-bearing Interest-bearing demand Savings Money Markets Retail CDs Brokered Deposits Public Funds Noni
Slide 25: Average deposit trends
average deposit trends 25 All dollars shown in millions Business Public Funds Personal Uninsured Deposits $6,162$5,921$5,824$5,821$5,903$5,910 1Q244Q233Q232Q231Q234Q22 $3,823$3,913$3,789$3,664$3,881$4,133 1Q244Q233Q232Q231Q234Q22 $1,864$1,928$1,805$1,823$1,842 $2,026 1Q244Q233Q232Q231Q234Q22 Uninsur
Slide 26: Deposit concentrations
deposit concentrations Business Deposits by Sector All dollars shown in millions 26 NAICS Sector 3/31/24 % of Total Deposits Manufacturing $564.7 4.2% Real Estate and Rental and Leasing 446.5 3.3% Finance and Insurance 463.5 3.5% Construction 346.0 2.6% Professional, Scientific, and Technical Servic
Slide 27: Borrowing capacity & cash/investment liquidity
27 Borrowing Capacity • Interest-bearing deposits with other banks of $751 million • Investment securities portfolio: • 97.3% of investment portfolio classified as available-for-sale • $554.0 million of expected cash flow from securities portfolio in next 12 months • $472.1 million of floating rate
Slide 28: Agile acquisition
agile acquisition 28 • $93.4 million in loans acquired • $5.6 million of intangibles created: • Goodwill - $1.8 million • Customer List - $2.7 million • Agile is a full-service specialty finance company based in Lincolnshire, IL and operates throughout the U.S. • Lends to commercial customers to fin
Slide 29: Loan portfolio
loan portfolio 29 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) All dollars shown in millions Total growth/(decline): $271.9 million ICRE $3,712 33% Commercial & Small Business Banking $3,240 29% Oak Street $747 7% Franchise $254 2% Summit $688 6% Agile $119 1% Consumer $964 9% Mortgage $1
Slide 30: Loan concentrations
loan concentrations 30 C&I and Owner Occupied CRE Loans by Sector1 Investor CRE Loans by Property Type All dollars shown in millions 1 Excludes Summit Funding Group and Agile Premium Finance NAICS Sector 3/31/24 % of Total Loans Finance and Insurance $835.5 7.5% Real Estate and Rental and Leasing 69
Slide 31: Area of focus - office portfolio
area of focus - office portfolio (non-owner occupied) 31 Office Property Type 1 Performance metrics based on loans greater than $2.5 million and excluding classified assets. All dollars shown in millions Office Property Market Office Maturity Schedule • $464 million balance represents 4.1% of total
Slide 32: Allowance for credit losses
allowance for credit losses 32 ACL / Total Loans 1Q24 Highlights All dollars shown in millions • $160.4 million combined ACL; $11.2 million combined provision expense • $144.3 million ACL – loans and leases; modest increase driven by loan growth; 1.29% of loan balances • Utilized Moody’s March basel
Slide 33: Asset quality
asset quality 33 Nonperforming Assets / Total AssetsClassified Assets / Total Assets Net Charge Offs & Provision Expense1 . 1 Provision includes both loans & leases and unfunded commitments All dollars shown in millions $59.4 $65.9 $75.1 $54.0 $34.8 0.34% 0.38%0.44% 0.32% 0.21% 1Q244Q233Q232Q231Q23
Slide 34: Capital
capital 34 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 3/31 Risk Weighted Assets = $13,562,455 All capital numbers are considered preliminary. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial conditio
Slide 35: Capital ratios, reflecting all unrealized losses
capital ratios, reflecting all unrealized losses1 35 Tier 1 Common Equity Ratio Total Capital Ratio 3/31 Risk Weighted Assets = $13,562,455 All capital numbers are considered preliminary. 1 Assumes Company holds cash proceeds of securities sales Tier 1 Capital Ratio 10.11%10.24% 9.62%9.53%9.37% 7.00
Slide 36: Capital strategy
capital strategy 36 Strategy & DeploymentTangible Book Value Per Share • 4.1% annualized dividend yield • 43.3% of 1Q24 earnings returned to shareholders through common dividend • Most recent internal stress testing indicates capital ratios above regulatory minimums in all modeled scenarios • Common
Slide 37: Outlook commentary
outlook commentary1 • Loan balances expected to grow 10-12% on an annualized basis in near-term • Average deposit balances expected to grow moderately in near-term • Investment portfolio expected to remain stable in near-term 37 • Total noninterest expense expected to be $120 - 122 million • Include
Slide 38: Presentation contents
About First Financial Bancorp Financial Performance Appendix presentation contents 38
Slide 39: Appendix: our markets
appendix: our markets • Greater Cincinnati/Dayton • Loans $4.4 billion • Deposits $5.9 billion • Deposit Market Share #4 (2.9%) • Banking Centers 50 • Fortune 500 Companies 5 • Indianapolis • Loans $1.0 billion • Deposits $0.7 billion • Deposit Market Share #14 (1.2%) • Banking Centers 9 • Fortune 5
Slide 40: Non-GAAP financial information
The Company’s Investor Presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial information should be considered supplemental to, and not as a substitute for,
Slide 41: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 41 All dollars shown in thousands Net interest income and net interest margin - fully tax equivalent Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2024 2023 2023 2023 2023 Net interest income 148,740$ 153,765$ 155,455$ 159,232$ 159,318$ Tax equivalent adjustm
Slide 42: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 42 All dollars shown in thousands Additional non-GAAP ratios Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, (Dollars in thousands, except per share data) 2024 2023 2023 2023 2023 Net income (a) 50,689$ 56,732$ 63,061$ 65,667$ 70,403$ Average total shareholders
Slide 43: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 43 All dollars shown in thousands Additional non-GAAP measures 3Q23 2Q23 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 148,740$ 148,740$ 153,765$ 153,765$ 155,455$ 155,455$ 159,232$ 159,232$ Provi
Slide 44: First Financial Bancorp
44 First Financial Bancorp First Financial Center 255 East Fifth Street Cincinnati, OH 45202
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