First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Presentation (May 2016)
28 slides from First Financial Bancorp's investor presentation, May 11, 2016
Slide 1: First Financial: Another step on the path to success
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Slide 2: Forward-looking statements
2 Certain statements contained in this release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Examples of forward-looking statements include, but are not limited to, projections of revenues, income
Slide 3: Presentation Contents
3 About First Financial Bancorp Strategic Direction Recent Financial Results Presentation Contents
Slide 4: Company Overview
4 Company Overview NASDAQ: FFBC Overview Founded: 1863 Headquarters: Cincinnati, Ohio Banking Centers: 101 Assets: $8.2 billion Loans: $5.5 billion Deposits: $6.2 billion Wealth Mgmt: $2.3 billion AUM Lines of Business Commercial / Private Banking C&I, I-CRE, Treasury, Wealth Retail Banking Consumer
Slide 5: Our Markets
Central OH Loans $0.9 billion Loan Growth (Y-o-Y) 28.7% Deposits $0.4 billion Deposit Market Share #14 (0.9%) Banking Centers 6 Fortune 500 Companies 4 5 Our Markets Indianapolis Loans $0.4 billion Loan Growth (Y-o-Y) 38.6% Deposits $0.5 billion Deposit Market Share #13 (1.2%) Banking Centers 8 Fort
Slide 6: Proven Acquirer Through the Cycle
Proven Acquirer Two FDIC-assisted acquisitions totaling $2.5 billion in assets (2009) Two branch acquisitions of 38 offices in Indiana and Ohio (2011) Three banks in Columbus, Ohio totaling $727 million in assets (2014) Oak Street Funding, specialty lender focused on the insurance industry, $243 mil
Slide 7: Investments in our Business
Product expansions Specialty lending (~ $1 billion, excluding Oak Street) Mobile banking & other technology enhancements for clients Re-entry into mortgage business (2010) 2015 originations of $320 million Wealth infrastructure improvements Investment model Real estate management, tax & insurance ou
Slide 8: Invest with First Financial
Proven & sustainable business model Well managed through the cycle Conservative operating philosophy Consistent profitability Robust capital management Prudent steward of shareholders’ capital Strong asset quality Well defined M&A strategy Selective markets, products & asset diversification Direct l
Slide 9: Total Shareholder Return
9 1 – includes dividend reinvestment 2 – simple average - assumes equal weight 3 – 2016 YTD through 04/28/2016 Total Shareholder Return 1 Company Ticker 2008-1Q16 2015 2016 YTD (3) First Financial FFBC 133.04% 0.68% 8.55% KBW Regional Bank Index KRX 24.52% 5.99% 1.15% NASDAQ Composite CCMP 102.47% 7
Slide 10: Strategic Direction
10 About First Financial Bancorp Strategic Direction Recent Financial Results
Slide 11: Strategic Overview
11 Operational Excellence • Focus on cost, efficiency & volume Client Intimacy • Strong client focus • Relationship driven Product Leadership • Develop new products, new markets & new techniques What does First Financial stand for? Strategic Overview
Slide 12: Our Strategy: Premier Business Bank
Our strategy is to be the Premier Business Bank in the markets we serve “Bank the business, bank the owner & bank the employees.” Rationale: Our value proposition – relationship banking & sophisticated solutions – resonates with and is desired by small / mid-size businesses Alignment with our compet
Slide 13: Connecting Strategy to Execution
13 Connecting Strategy to Execution 13
Slide 14: Strategic Priorities
14 Strategic Priorities Deliver top quartile shareholder returns Continue to invest in innovative solutions that enable our clients to bank with us on their terms Promote leadership & development within our communities Achieve best-in-class compliance & risk management programs Remain vigilant in ou
Slide 15: Recent Financial Results
15 About First Financial Bancorp Strategic Direction Recent Financial Results
Slide 16: 1Q 2016 Highlights
16 1Q 2016 Highlights – 102nd Consecutive Quarter of Profitability Total assets increased $46 million, to $8.2 billion, compared to the fourth quarter. Loans increased $116 million, or 9% annualized, over the linked quarter. Deposits decreased $3 million, or 0.2% annualized, compared to the linked q
Slide 17: Profitability
17 Profitability Net Income & EPS Return on Average Assets Return on Tangible Common Equity $19.8 $19.8 $18.7 $18.9 $17.6 $20.1 $20.5 $20.9 $19.2 $17.8 $0.32 $0.32 $0.30 $0.31 $0.29 $0.33 $0.33 $0.34 $0.31 $0.29 1Q164Q153Q152Q151Q15 Net Income (GAAP) Net Income (Operating) EPS (GAAP) EPS (Operating)
Slide 18: Net Interest Income / Net Interest Margin
18 Net Interest Income / Net Interest Margin Average Loan & Deposit Balances for the Quarter Gross loans include loans held for sale and FDIC indemnification asset Net Interest Income Net Interest Margin Average Loans Average Deposits $5,435 $5,267 $5,053 $4,814 $4,793 4.59% 4.62% 4.52% 4.45% 4.51%
Slide 19: Interest Rate Sensitivity
19 Interest Rate Sensitivity Loan Portfolio – Floating Loan Growth (1) Sensitivity Trend (Up100, Up200) (3) 46% Y-o-Y growth in floating rate lending (1) 33% Y-o-Y growth in client derivatives (2) % of loans repricing: <=3 months 51% <1 year 56% Securities portfolio duration – 3.0 years Non-maturity
Slide 20: Non-Interest Income / Non-Interest Expense
20 Non-Interest Income / Non-Interest Expense Non-Interest Income 1 Non-Interest Expense Efficiency Ratio Non-Personnel Expense 1 Excludes Gain on Sale of Investment Securities and Non-Interest Income Related to the Covered / Formerly Covered Loan Portfolio $50.7 $51.3 $53.0 $48.8 $48.1 $50.3 $50.3
Slide 21: Loans
21 Loans Loan Product Mix 1 Loan Portfolio By Geography 2 Average Loan Size & Rate 3 Nationwide Lending Platforms 1 Commercial & Business includes Owner Occupied Commercial Real Estate 2 Includes loans held for sale. Excludes purchase accounting loan marks. 3 Average loan balances in $000s. $2,687 4
Slide 22: Loans: C&I by Industry, CRE by Collateral
22 Loans C&I Loans By Industry 1 CRE Loans By Collateral 2 1 Industry types included in Other representing greater than 1% of total C&I loans include Retail Trade, Agriculture, Public Administration, Waste Management, Utilities and Education. 2 Collateral types included in Other representing greater
Slide 23: Investment Portfolio
23 Investment Portfolio Total investments of $1.92 billion Investment Portfolio / Total Assets = 23.4% Effective yield earned during first quarter = 2.59% Portfolio duration = 3.0 years Portfolio Composition Portfolio Quality Agency, 69% AAA, 14% Regulatory Stock, 2% AA, 2% AA-, 2% AA+, 2% BBB, 2% B
Slide 24: Asset Quality
24 Asset Quality Non-Performing Loans / Total Loans Non-Performing Assets / Total Assets Net Charge Offs / Average Loans Classified Assets / Total Assets $52.1 $56.9 $55.9 $59.8 $64.6 0.95% 1.06% 1.07% 1.23% 1.36% 1Q164Q153Q152Q151Q15 NPLs NPLs / Total Loans $64.1 $70.1 $71.1 $76.2 $85.5 0.78% 0.86%
Slide 25: Asset Quality: Allowance and Charge Offs
25 Asset Quality Allowance / Non-Accrual Loans Allowance / Total Loans Net Charge Offs & Provision Expense $53.7 $53.4 $53.3 $52.9 $53.1 $22.0 $28.0 $35.7 $39.7 $49.2 244.2% 190.7% 149.3% 133.3% 108.0% 1Q164Q153Q152Q151Q15 Allowance for Loan Losses Non-Accrual Loans ALLL / Non-Accrual Loans $53.7 $5
Slide 26: Capital
26 Capital Tier 1 Common Equity Tangible Book Value Total Capital Tangible Common Equity $615.1 $597.5 $601.3 $656.9 $650.2 $9.94 $9.69 $9.74 $10.65 $10.54 1Q164Q153Q152Q151Q15 Tangible Book Value Tangible Book Value per Share $615.1 $597.5 $601.3 $656.9 $650.2 7.71% 7.53% 7.84% 9.08% 9.16% 1Q164Q15
Slide 27: Reconciliation of Non-GAAP Measures
27 Reconciliation of Non-GAAP Measures Non-Operating Expenses include acquisition-related expenses, expenses associated with efficiency initiatives and other expenses not expected to recur. $ in 000s 1Q - 2015 2Q - 2015 3Q - 2015 4Q - 2015 1Q - 2016 Net Interest Income $ 58,586 $ 58,674 $ 63,159 $ 6
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