First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Presentation (February 2009)
50 slides from First Financial Bancorp's investor presentation, Feb 9, 2009
Slide 1: First Financial Bancorp Investor Presentation
fiRST first financial bancorp First Financial Bancorp Investor Presentation February 2009
Slide 2: Forward-looking statements
Certain statements that 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 Securities and Exchange Commission, in press
Slide 3: Profitably managed the company throughout 2008
Profitably managed the company throughout 2008 — Grew average commercial loans 15% — Controlled expenses — Maintained strong capital and liquidity levels + Total regulatory capital exceeded the minimum required by $161.9 million — 2008 total return to shareholders: 14.65% = Credit quality trends rem
Slide 4: Agenda
fiRST first financial bancorp Investor Presentation Our History.............. ) Our Business ............ 8 Our Operating Model....... 13 Financial Information. ...... 19 Credit...............000. 32
Slide 5: Our History
fiRST first financial bancorp Our History
Slide 6: First Financial Bank was founded in 1863
= First Financial Bank was founded in 1863 = 16 bank/thrift acquisitions from 1989 through 1999 resulted in multiple bank charters and brand identities = Established Strategic (Rebuilding & Reorganization) Plan in March 2005 Y Consolidated and streamlined company to establish one charter and one bra
Slide 7: Company timeline
osio12007 December 2007 Mortgage Servic Completed a ing & Reorganization rtar2005 to PHM Rebull isietegii ties ‘organs portion of Strategi Plan fast s1rear2007 December 2008 Increased Dividend ‘August 2008 Received {Established Indianapolis $20 milion ‘Commercial Team. CPP Investment January 2005 De
Slide 8: Our Business
fiRST first financial bancorp Our Business
Slide 9: Client Intimate Strategy
Client “Intimate” Strategy — Strategic Focus: build long-term relationships with clients by identifying and meeting their financial needs Target clients — Individuals and small / mid-size private businesses located within the regional markets we serve Ohio, Indiana, Kentucky — Serving 9 regional mar
Slide 10: Regional markets map
Hl Northwest indiana Bl North Central indiana Bh indianapolis - indiana South Central indiana Gi Northern Ohio I Dayton / Middletown - Ohio 1 Butler / Warren County - Ohio i Cincinnati - Ohio Bl Northern Kentucky ‘Another step on the path to success, 10
Slide 11: Organic growth focus and acquisitions
= Primary focus and value creation is through organic growth in our key regional markets — 2008 expansion included the addition of a commercial lending team in Indianapolis (IN), a new business office and banking center in Kettering (OH), and a new banking center in Crown Point (IN) — 2009 plans inc
Slide 12: Top-quartile performance for all stakeholders
= Top-quartile performance for all stakeholders = Sustained and consistent excellence = Commitment to growth = Effective management of all risks ‘Another step on the path to success. 12
Slide 13: Our Operating Model
fiRST first financial bancorp Our Operating Model
Slide 14: Retail, Commercial, Wealth Management
first financial bancorp = Retail Banking = Commercial Banking = Wealth Management ‘Another step on the path to success 14
Slide 15: Retail Banking
fiRST Retail Banking first financial bancorp = Strategic Focus — Retail consumer clients — Deposits — Select consumer lending activities SHEDDING LIGHT IN UNCERTAIN TIMES. fiRST first ancl bask = 81 retail branch locations = Serving 9 regional markets in 53 communities in 3 states = Managed locally
Slide 16: Demographic Profile
fiRST Demographic Profile first financial bancorp [Demographic Profile (First Financial Bancorp.) Data as of June 30, 2008] Projected humber Total Deposisin FFBCDeposis S2POSt Total Population potcton Median i Market TFFBC Market inuamet Mattet Population Change | Phan Branches (000) ($000) cy v 0 c
Slide 17: Commercial Banking strategic focus
= Strategic Focus — Small / mid-size private businesses located within our regional markets — Commercial & Industrial — Commercial Real Estate — Deposits / Cash Management = Sales Force — 9 Market Presidents — 46 Commercial Lenders — 10 Treasury Management Representatives ‘Another step on the path t
Slide 18: First Financial Wealth Resource Group
= First Financial Wealth Resource Group — Trust — Brokerage — Investment Advisor = Strategic Focus — Maintain existing client base — Increase share of wallet of existing client base — Integration with retail and commercial banking clients ‘Another step on the path to success 18
Slide 19: Financial Information
fiRST first financial bancorp Financial Information
Slide 20: Return on Average Assets and key ratios
Return on Average Assets Return on Average Shareholders’ Equity Net Interest Margin Efficiency Ratio Leverage Ratio Total Capital Ratio EOP Tangible Shareholders' Equity / EOP Tangible Assets EOP Tangible Common Shareholders’ Equity / EOP Tangible Assets 2006 2007 2008 0.62% 1.08% 0.67% 7.13% 12.73%
Slide 21: Earning Assets
fiRST Earning Assets first financial bancorp Yield 6.59% Yield 6.86% Yield 5.85% 14% 12% 45% 57% 53% 45% Average FY-2006 Average FY-2007 Average FY-2008 © Commercial Loans & Leases @ Consumer Loans G Residential Mortgages @ Investments Yield presented is not tax-equivalent Another step on the path t
Slide 22: Loan Portfolio Strategy
fiRST Loan Portfolio Strategy first financial bancorp Growth Since 2005* Indirect Installments (86%) Residential Mortgages || (50% Commercial Lending (400,000) (300,000) (200,000) (100,000) 100,000 200,000 300,000 400,000 500,000 600,000 (s000s) = Gross loan CAGR* = 0.53% due to planned runoff in in
Slide 23: Loan yields by category
0% Bm Yid= Yid= 79% 5.7% 30% | Yid=, 8.0% 5% 0% 5% - Yid = Yid= Yid=YIO= 579 0% 6.5% Yid=\.4_ 8.0% 8.2% 7.9% 7 505 5% 0% Commercial Commercial RE Residential RE Installment Home Equity 0 2006 2007 2008 Another step on the path to success, 23
Slide 24: Funding costs and deposit mix
Yield 2.99% Yield 3.37% Yield 2.47% Average FY-2006 Average FY-2007 Average FY-2008 OC Noninterest-Bearing Deposits” i Interest-Bearing Deposits Time Deposits @ Borrowed Funds * Not included in yield calculation ‘Another step on the path to success 24
Slide 25: Deposit Portfolio Composition
fiRST Deposit Portfolio Composition (EOP) first financial bancorp 50% - = Yid = Yid = Yid= Yid= 45% 18% Yid= 08% 39% 45% Yid= 2.0% 40% 4 35% 4 30% 25% 20% + Yid = 0% 15% 4 10% 5% 0% Noninterest Bearing Interest Bearing Time © 2006 @ 2007 2008 ‘Another step on the path to success 28
Slide 26: Noninterest Income
fiRST Noninterest Income first financial bancorp FY-2008 Total Noninterest Income = $51.7 million 6% Trust & /A Fees 0 Service Charges on Deposits O Gain on Mortgage Loan Sales Bankcard Income @ Other Misc. Income i Gains on Sales of Investment Securities FHLMC Loss 1 Service Charges on Deposits Tru
Slide 27: Efficiency Ratio
Efficiency Ratio FY-2004 FY-2005 FY-2006 FY-2007 FY-2008 ‘Another step on the path to success yg
Slide 28: Full-Time Equivalent Personnel
Full-Time Equivalent Personnel Jun-06 Sep-06 Dec-06 Mar-O7 Jun07 Sep-07 Dec-O7 Mar-08 Jun08 Sep-08 Dec-08 Another step on the path to success. 28
Slide 29: Regulatory capital
Regulatory = Excess consolidated Rati 408 Target ‘well-capitalizet capital of $161.9 million nena ini EOP Tangible Equity/ over re. % -7.25% ; gulatory minimum EOP Tangible acsets 8.70% | 6.75% -7.25% NIA required level EOP Tangible Common Equity/ 6.52% NIA NIA = Based on “well-capitalized” [EOP Tan
Slide 30: Investment portfolio strategy
= On-going review of various strategies to increase the size of the investment portfolio and its absolute level of earnings, while balancing capital and liquidity targets — Since the end of the first quarter of 2008, the portfolio has grown approximately $307.8 million on a net basis — Approximately
Slide 31: Investment Portfolio
fiRST Investment Portfolio first financial bancorp December 31, 2008 Sector Allocation Credit Quality ‘MBSs (Agency) Investment Grade ee ae 95.4% _ a 63.3% CMOs (Private) 0.0% Not Rated + (Mos (Agency) Municipal 3.0% 19.4% : 5.0% Non investment Oter vestnent Grade — 0.3% 1.3% "OEE ES SN SR Investmen
Slide 32: Participating in TARP Capital Purchase Program
= Participating in the U.S. Treasury's Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP) Sold $80 million perpetual preferred securities on December 23, 2008 = “CPP Investment Portfolio” Short and long-term plans for the utilization of CPP proceeds Ratio of investments to capital,
Slide 33: CPP Investment Portfolio
Book 12/31/2008 Price Market Value fAgencys 3 = ICMOs (Agency) 75,938 ICMOs (Private) : IMBSs (Agency) 46,521 Agency Preferred 2 Subtotal S_ 122,458 3 Total CPP Investment Portfolio 100.0% $ 122,458 $ Net Unrealized Gain/(Loss) $ 932 Aggregate Gains 8 1,148 Aggregate Losses $ (216) Net Unrealized Ga
Slide 34: Credit
fiRST first financial bancorp Credit
Slide 35: Current Credit Management System
fiRST Current Credit Management System first financial bancorp Market-Based Centralized First Financial Bancorp Market Level First Financial Bank I 1 Chief Creait Executive Vice Officer President Markets : Central Regional Credit Market Documentation! Officers (2) cS Presidents I I T ‘Commercial Rea
Slide 36: Credit quality trends
= Credit quality trends remained relatively stable and within expected range throughout most of 2008 — Reflects discipline of originating loans within existing footprint, strong underwriting policies, and proactive management of resolution strategies for problem credits = Rapidly weakening economic
Slide 37: NPL, charge-off and reserve trends
Ga NPLLoans % [= Charge-off % —@ALLLINPL % 1.40% 1.20% 235% 2 281% 2005 3005 4005 1006-2006 ©3006 «4006 «1007 2007 sad? ©4007 1008 «2008 «3008 ©4008 Adi Adi Another step on the path to success a7
Slide 38: Net Charge-offs: peers based on size
st financial Net Charge-offs to Average Loans & Leases Comparison with Peers Based on Size Oa 0.47% 0.40% 0.40% 0.36% 0.28% Oss mm ana om 0.26% 0.28% 0.19% 0.15% r : : 1007 2007 3007 407 10-08 20-08 30-08 40.08 O Peer Group | @FFBC Peer Group | is comprised of 98 bank holding companies located throu
Slide 39: Net Charge-offs: peers based on geography
Net Charge-offs to Average Loans & Leases Comparison with Peers Based on Geography 0.46% 0.40% 0.40% ease 0.36% 0.37% 0.73% 0.67% 0.63% 0.36% 10-08 20-08 0.26% el ii ‘i 3007 4Q07 1Q07 2Q07 O Peer Group Il @FFBC Peer Group II is comprised of 30 bank holding companies (page 50 lists the companies and
Slide 40: ALLL to Nonperforming Loans: peers by size
Allowance for Loan & Lease Losses to Nonperforming Loans Comparison with Peers Based on Size 260% 241% 222% 212% 216% 209% 198% 197% ar 195% 193% 162% eR 101% 90% 1007 2007 3007 407 1008 2008 3008 4q08 Peer Group | BFFBC Peer Group | is comprised of 98 bank holding companies located throughout the U
Slide 41: ALLL to Nonperforming Loans: peers by geography
first financia Allowance for Loan & Lease Losses to Nonperforming Loans Comparison with Peers Based on Geography 241% 212% 216% 187% uae 195% 193% 197% 151% 155% 141% 136% 100% 96% 80% 79% 1007 2007 3007 4007 1008 2008 3008 4q08 Peer Group Il OFFBC Peer Group Il is comprised of 30 bank holding compa
Slide 42: ALLL to Period-end Loans: peers by size
Allowance for Loan & Lease Losses to Period-end Loans Comparison with Peers Based on Size 1.33% tate 1.34% 1.22% 1.20% 1.23% 121% 1.29% | | | | ] | | | r 10.07 20.07 30.07 40.07 10-08 20.08 30.08 40-08 Peer Group | OFFBC Peer Group | is comprised of 98 bank holding companies located throughout the U
Slide 43: ALLL to Period-end Loans: peers by geography
Allowance for Loan & Lease Losses to Period-end Loans Comparison with Peers Based on Geography 1.28% 1.10% 1.10% 1.10% 1.09% 1.12% 4.10% 112% 1.13% 1.14% 141% 10-07 2007 30.07 40.07 10-08 20-08 Peer Group II BFFBC Peer Group Il is comprised of 30 bank holding companies (page 50 lists the companies a
Slide 44: Corporate Overview (12/31/08)
Corporate Overview (12/31/08) Total Assets: $3.7 billion . Profitably managed the company throughout 2008 Total Loans: $27 billion — Grew average commercial loans 15% Total Deposits: $2.8 billion _ 81 retail branch locations serving 9 regional Gontrolled SXPENSES oo markets in 53 communities in 3 st
Slide 45: Leadership
fiRST first financial bancorp Leadership
Slide 46: Claude E. Davis and executive team
first financial Claude E. Davis President & Chief Executive Officer Claude E. Davis joined the company as President, Chief Executive Officer, and a member of the Board of Directors in October 2004. Mr. Davis also serves as Chairman of the Board of Directors of First Financial Bank. Prior to joining
Slide 47: Executive team biographies
yancorp: Gregory A. Gehimann Senior Vice President, General Counsel Gregory A. Gehimann joined the company in June 2005 as Senior Vice President and General Counsel. Mr. Gehimann also served as Chief Risk Officer for the company from July 2006 to July 2008. Prior to joining the company, he practiced
Slide 48: John Sabath and Michael Cassani
John Sabath Senior Vice President & Chief Risk Officer John Sabath joined the company in 2005 as Regulatory Risk Manager and was later promoted to Senior Risk Officer and First Vice President. In August 2008, Mr. Sabbath was appointed Senior Vice President and Chief Risk Officer with responsibility
Slide 49: About First Financial Bancorp
fiRST first financial bancorp About First Financial Bancorp First Financial Bancorp is a Cincinnati, Ohio based bank holding company with $3.7 billion in assets. Its banking subsidiary, First Financial Bank, N.A., founded in 1863, provides retail and commercial banking products and services, and inv
Slide 50: Peer Group II companies
Company Name Ticker _city state First Financial Bancorp. FBC Cincinnati OH ‘Amcore Financial, Inc, AMF! Rockford i ‘Community Bank Shares of indiana, ine. BIN. New Albany IN First Citizens Bane Corp, FCZA Sandusky on Fifth Third Bancorp FIT8 Cincinnati on FirstMerit Corporation FMER Akron on First M
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