First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q3 2012 Earnings Presentation
23 slides from First Financial Bancorp's earnings presentation, Oct 25, 2012
Slide 1: First Financial Bancorp Third Quarter 2012 Earnings Release Supplemental Information
First Financial Bancorp Third Quarter 2012 Earnings Release Supplemental Information EXHIBIT 99.2
Slide 2: Forward-looking statements
2 Certain statements contained in this presentation which 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 SEC, i
Slide 3: Pre-Tax, Pre-Provision Income Trend
3 Pre-Tax, Pre-Provision Income Trend Adjusted pre-tax, pre-provision income represents income before taxes plus provision for all loans less FDIC loss share income and accelerated discount adjusted for significant nonrecurring items The decrease in third quarter 2012 adjusted PTPP income was driven
Slide 4: Pre-Tax, Pre-Provision Income
4 Pre-Tax, Pre-Provision Income For the three months ended September 30, June 30, March 31, December 31, September 30, (Dollars in thousands) 2012 2012 2012 2011 2011 Pre-tax, pre-provision income 1 26,894$ 32,636$ 30,020$ 33,015$ 31,814$ Less: accelerated discount on covered loans 3,798 3,764 3,645
Slide 5: Low Risk Balance Sheet
5 Low Risk Balance Sheet Only 50% of First Financial’s total assets are 100% risk-weighted assets compared to the peer group median of 56% First Financial’s percentage of total risk- weighted assets to total assets is 60.8% compared to the peer group median of 68.9% The lower percentages are driven
Slide 6: Revenue by Source
6 Revenue by Source Strategic – Elements of the business that either existed prior to the acquisitions or were acquired with the intent to retain and grow. On a reported basis, approximately 75% of total revenue is derived from strategic businesses. Not including the FDIC loss sharing income and oth
Slide 7: Noninterest Income and Expense
7 Noninterest Income and Expense Components of Noninterest Income For the Three Months Ended September 30, 2012 (Dollars in millions) Components of Noninterest Expense For the Three Months Ended September 30, 2012 (Dollars in millions) $50.3 91% $1.0 2% $4.0 7% Strategic FDIC Support Other Non-strat
Slide 8: Deposit and Loan Composition
8 Deposit and Loan Composition Total Deposits – $4.9 billion As of September 30, 2012 (Dollars in millions) Gross Loans – $3.9 billion As of September 30, 2012 (Dollars in millions) Market exits are complete; acquired-non-strategic deposits consist primarily of time deposits in Western, Michigan and
Slide 9: Covered Loan Activity
9 Covered Loan Activity The majority of the loans acquired as part of the FDIC-assisted transactions are accounted for under ASC Topic 310-30 which requires the Company to periodically update its forecast of expected cash flows from these loans. As of September 30, 2012, the allowance for loan and l
Slide 10: Components of Covered Asset Credit Losses
10 Components of Covered Asset Credit Losses $1,998 $3,178 $2,084 $1,685 4Q11 1Q12 2Q12 3Q12 Actual Covered Asset Credit Losses For the three months ended September 30, (Dollars in thousands) 2012 Description Net incremental impairment for period $568 Reduction in expected cash flows related to cert
Slide 11: Glossary of Terms
11 Glossary of Terms To assist readers in understanding the Company’s financial results and the effect of recent acquisitions on reported amounts, the following terms are used throughout this release to refer to specific acquisition- related items. The first three define the business components refe
Slide 12: Supplemental Information Tables from the Third Quarter 2012 Earnings Release
Supplemental Information Tables from the Third Quarter 2012 Earnings Release
Slide 13: Table I Noninterest Income
13 Table I Noninterest Income Table I For the Three Months Ended September 30, June 30, September 30, (Dollars in thousands) 2012 2012 2011 Total noninterest income 30,830$ 33,545$ 28,115$ Certain signif icant components of noninterest income Items likely to recur: Accelerated discount on covered lo
Slide 14: Table II Noninterest Expense
14 Table II Noninterest Expense Table II For the Three Months Ended September 30, June 30, September 30, (Dollars in thousands) 2012 2012 2011 Total noninterest expense 55,286$ 57,459$ 53,142$ Certain signif icant components of noninterest expense Items likely to recur: Loss share and covered asset
Slide 15: Table III Credit Quality – Excluding Covered Loans
15 Table III Credit Quality – Excluding Covered Loans Table III As of or for the Three Months Ended Linked Quarter September 30, June 30, March 31, December 31, September 30, (Dollars in thousands) 2012 2012 2012 2011 2011 Total nonaccrual loans 49,404$ 63,093$ 55,945$ 54,299$ 59,150$ Troubled debt
Slide 16: Table IV Loan Portfolio – Excluding Covered Loans
16 Table IV Loan Portfolio – Excluding Covered Loans Table IV As of September 30, 2012 June 30, 2012 September 30, 2011 Linked Quarter Percent Percent Percent (Dollars in thousands) Balance of Total Balance of Total Balance of Total Commercial 834,858$ 27.2% 823,890$ 27.3% 822,552$ 28.0% Real estate
Slide 17: Table V Investment Portfolio
17 Table V Investment Portfolio Table V As of September 30, 2012 Securities Securities Other Total Percent Tax Equiv. Effective (Dollars in thousands) HTM AFS Investments Securities of Portfolio Yield Duration Agencies 20,844$ 26,163$ -$ 47,007$ 3.0% 3.61% 4.7 CMO - f ixed rate 505,288 202,218 - 707
Slide 18: Table VI Capital Ratios
18 Table VI Capital Ratios Table VI As of September 30, June 30, September 30, "Well-Capitalized" 2012 2012 2011 Minimum Leverage Ratio 10.54% 10.21% 10.87% 5.00% Tier 1 Capital Ratio 16.93% 17.14% 18.81% 6.00% Total Risk-Based Capital Ratio 18.21% 18.42% 20.08% 10.00% Ending tangible shareholders'
Slide 19: Table VII Significant Acquisition Related Items
19 Table VII Significant Acquisition Related Items Table VII For the Three Months Ended September 30, June 30, September 30, (Dollars in thousands) 2012 2012 2011 Income effect: Accelerated discount on covered loans 1, 2 3,798$ 3,764$ 5,207$ Acquired-non-strategic net interest income 7,931 7,117 8,6
Slide 20: Table VIII Estimated Yields and Average Balances
20 Table VIII Estimated Yields and Average Balances Table VIII For the Three Months Ended September 30, 2012 Average (Dollars in thousands) Balance Yield Loans, excluding covered loans 1 3,037,734$ 4.70% Covered loan portfolio accounted for under ASC Topic 310-30 2 785,446 10.70% Covered loan portfo
Slide 21: Table IX Covered Loan Portfolio
21 Table IX Covered Loan Portfolio Table IX As of September 30, 2012 June 30, 2012 September 30, 2011 Linked Quarter Percent Percent Percent (Dollars in thousands) Balance of Total Balance of Total Balance of Total Commercial 121,745$ 14.7% 142,009$ 15.7% 223,882$ 19.4% Real estate - construction 12
Slide 22: Table X Allowance for Loan Losses – Covered
22 Table X Allowance for Loan Losses – Covered Table X As of or for the Three Months Ended September 30, June 30, March 31, December 31, (Dollars in thousands) 2012 2012 2012 2011 Balance at beginning of period 48,327$ 46,156$ 42,835$ 48,112$ Provision for loan and lease losses - covered 6,622 6,047
Slide 23: First Financial Bancorp Third Quarter 2012 Earnings Release Supplemental Information
First Financial Bancorp Third Quarter 2012 Earnings Release Supplemental Information
First Financial Bancorp — Q3 2012 Earnings Presentation on 6ix