First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q4 2024 Earnings Presentation
42 slides from First Financial Bancorp's earnings presentation, Jan 28, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
investor presentation • Fourth 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: 127 Employees: 2,064 Market Cap (12/31/24): $2.6B Dividend Yield (12/31
Slide 6: Key investment highlights
key investment highlights • Proven & sustainable business model spanning 160 years • Premier Midwest franchise with top quartile performance • Consistent profitability – 137 consecutive quarters • High quality balance sheet & robust capital position (12.16% CET1) • Prudent risk management & credit c
Slide 7: Consistent best-in-class earnings
consistent best-in-class earnings 7 Return on Average Assets1 1 Data as of 3Q24. 2 KRX calculated as the top quartile of the current 50 KRX constituents. Source: S&P Capital IQ Pro 1-Year 3-Year 2Q18-3Q24 (since merger) 80% Percentile Rank KRX Top Quartile2 1.26% 81% Percentile Rank 1.22% 1.37% 1.23
Slide 8: Consistent better than market earnings growth
consistent better than market earnings growth 8 Earnings Per Share Growth1 1 Data as of 3Q34. 2 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 69% Percentile Rank 10% 6% 83% Percentile Rank 85% Percentile Rank 2% 0% 64
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 $3.5B / Deposits $2.6B Loans $1.9B / Deposits $5.9B Loans $4.0B / Deposits $5.5B L
Slide 10: Key company brands
key company brands Full suite of diversified financial products for individuals and businesses $18.6 Billion Assets $14.3 Billion Deposits 19.90% 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: 4Q 2024 results
4Q 2024 results 137th Consecutive Quarter of Profitability 14 • EOP assets increased $423.9 million compared to the linked quarter to $18.6 billion • EOP loans increased $208.7 million compared to the linked quarter to $11.8 billion • Average deposits increased $543.1 million compared to the linked
Slide 15: 4Q 2024 highlights
4Q 2024 highlights • Strong quarterly earnings driven by net interest margin and increase in noninterest income • Adjusted1 earnings per share – $0.71 • Adjusted1 return on assets – 1.47% • Adjusted1 pre-tax, pre-provision return on assets – 2.03% • Adjusted1 return on average tangible common equity
Slide 16: 4Q 2024 highlights
4Q 2024 highlights • Adjusted1 noninterest expense of $130.9 million, a 5.0% increase from third quarter • Adjustments1 include $4.7 million of efficiency-related costs, $14.3 million of tax credit write-downs, $1.0 million of state tax credits and $2.0 million of gains on the sale of previously clo
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. Adjusted1 Pre-tax, Pre-Provision Earnin
Slide 19: Net interest income & margin
net interest income & margin 19 Net Interest Margin (FTE) 4Q24 NIM (FTE) Progression Net Interest Income All dollars shown in millions $149.2$151.0$148.4 $143.9 $147.7 $4.7$3.8 $3.6 $4.0 $5.2 $154.4$155.6 $153.3 $148.7 $153.8 4Q243Q242Q241Q244Q23 Basic NII Loan Fees 3.82% 3.98%4.00%3.99% 4.12% 0.12%
Slide 20: Noninterest income
noninterest income 20 Noninterest Income 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. 4Q24 Highlights • $0.1 million of adjustments1 for gains on securities • Total fee incom
Slide 21: Noninterest expense
noninterest expense 21 Noninterest Expense 4Q24 Highlights 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. All dollars shown in millions • Efficiency initiative ongoing; 145 pos
Slide 22: Average balance sheet
average balance sheet 22 Average LoansAverage Securities All dollars shown in millions 1 Includes loans fees and loan accretion Average Deposits $3,373$3,274$3,132$3,138$3,184 4.28%4.24%4.23% 4.01% 4.20% 4Q243Q242Q241Q244Q23 Investment Securities Investment Securities Yield $11,688$11,534$11,441$11,
Slide 23: Deposits
deposits 23 Deposit Product Mix (Avg) 4Q24 Average Deposit Progression All dollars shown in millions Total growth/(decline): $543.1 million Noninterest- bearing $3,041 21% Interest-bearing demand $1,732 12% Savings $996 7% Money Markets $3,196 22% Retail CDs $1,847 13% Brokered Deposits $1,399 10% P
Slide 24: Average deposit trends
average deposit trends 24 All dollars shown in millions Business Public Funds Personal Uninsured Deposits $6,520$6,330$6,312$6,162$5,921 4Q243Q242Q241Q244Q23 $4,207$3,974$3,824$3,823$3,913 4Q243Q242Q241Q244Q23 $2,129 $1,937$1,978$1,864$1,928 4Q243Q242Q241Q244Q23 Uninsured deposits (per call report i
Slide 25: Deposit concentrations
deposit concentrations Business Deposits by Sector All dollars shown in millions 25 NAICS Sector 12/31/24 % of Total Deposits Manufacturing $697.6 4.8% Finance and Insurance 595.2 4.1% Real Estate and Rental and Leasing 489.5 3.4% Construction 430.4 3.0% Professional, Scientific, and Technical Servi
Slide 26: Borrowing capacity & cash/investment liquidity
26 Borrowing Capacity • Interest-bearing deposits with other banks of $730 million • Investment securities portfolio: • 97.6% of investment portfolio classified as available-for-sale • $630.2 million of expected cash flow from securities portfolio in next 12 months • $467.5 million of floating rate
Slide 27: Agile acquisition
agile acquisition 27 • Acquired February 29th • $93.4 million in loans acquired; $202.5 million as of December 31st • $5.6 million of intangibles created • Agile is a full-service specialty finance company based in Lincolnshire, IL and operates throughout the U.S. • Lends to commercial customers to
Slide 28: Loan portfolio
loan portfolio 28 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) All dollars shown in millions Total growth/(decline): $208.7 million ICRE $3,756 32% Commercial & Small Business Banking $3,309 28% Oak Street $746 6% Franchise $241 2% Summit $888 8% Agile $202 2% Consumer $1,026 9% Mortgage
Slide 29: Loan concentrations
loan concentrations 29 C&I and Owner Occupied CRE Loans by Sector1 Investor CRE Loans by Property Type All dollars shown in millions 1 Excludes Agile Premium Finance NAICS Sector 12/31/24 % of Total Loans Finance and Insurance $1,247.2 10.6% Manufacturing 522.0 4.4% Construction 341.8 2.9% Accommoda
Slide 30: Area of focus - office portfolio (non-owner occupied)
area of focus - office portfolio (non-owner occupied) 30 1 Performance metrics based on loans greater than $2.5 million and excluding classified assets. All dollars shown in millions Office Property Market • $410.3 million balance represents 3.5% of total loan portfolio; includes $49.4 million of lo
Slide 31: Allowance for credit losses
allowance for credit losses 31 4Q24 Highlights All dollars shown in millions • $173.7 million combined ACL; $9.4 million combined provision expense • $156.8 million ACL – loans and leases; increase driven by slower prepayments and loan growth; 1.33% of loan balances • Utilized Moody’s December basel
Slide 32: Asset quality
asset quality 32 Classified Assets / Total Assets . 1 Provision includes both loans & leases and unfunded commitments All dollars shown in millions Nonperforming Assets / Total Assets $66.0$65.5$62.7$59.4 $65.9 0.36%0.36%0.35%0.34%0.38% 4Q243Q242Q241Q244Q23 NPAs NPAs / Total Assets $12.6 $10.6 $4.2
Slide 33: Capital
capital 33 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 12/31 Risk Weighted Assets = $14,059,215 All capital numbers are considered preliminary. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial conditi
Slide 34: Capital strategy
capital strategy 34 Strategy & DeploymentTangible Book Value Per Share • 3.6% annualized dividend yield as of December 31st • 35.3% of 4Q24 earnings returned to shareholders through common dividend • Most recent internal stress testing indicates capital ratios above regulatory minimums in all modele
Slide 35: Outlook commentary
outlook commentary1 • Loan balances expected to increase low single digits on an annualized basis • Seasonal decline in public fund and business deposit balances expected • Investment portfolio expected to remain stable 35 • Total noninterest expense expected to be $128 - 130 million • Stable expens
Slide 36: Presentation contents
About First Financial Bancorp Financial Performance Appendix presentation contents 36
Slide 37: Appendix: our markets
appendix: our markets • Greater Cincinnati/Dayton • Loans $4.4 billion • Deposits $6.3 billion • Deposit Market Share #4 (3.4%) • Banking Centers 45 • Fortune 500 Companies 7 • Indianapolis • Loans $1.1 billion • Deposits $0.8 billion • Deposit Market Share #14 (1.2%) • Banking Centers 8 • Fortune 5
Slide 38: Non-GAAP financial information
The Company’s Investor Presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial information should be considered supplemental to, and not as a substitute for,
Slide 39: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 39 All dollars shown in thousands Net interest income and net interest margin - fully tax equivalent Dec. 31, Sep. 30, June 30, Mar. 31, Dec. 31, 2024 2024 2024 2024 2023 Net interest income 154,399$ 155,560$ 153,311$ 148,740$ 153,765$ Tax equivalent adjustm
Slide 40: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 40 All dollars shown in thousands Additional non-GAAP ratios Dec. 31, Sep. 30, June 30, Mar. 31, Dec. 31, (Dollars in thousands, except per share data) 2024 2024 2024 2024 2023 Net income (a) 64,885$ 52,451$ 60,805$ 50,689$ 56,732$ Average total shareholders
Slide 41: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 41 All dollars shown in thousands Additional non-GAAP measures 2Q24 1Q24 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 154,399$ 154,399$ 155,560$ 155,560$ 153,311$ 153,311$ 148,740$ 148,740$ Provi
Slide 42: First Financial Bancorp
42 First Financial Bancorp First Financial Center 255 East Fifth Street Cincinnati, OH 45202
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