First Financial Corporation · NASDAQ:THFF
First Financial — Investor Presentation (January 2024)
28 slides from First Financial's investor presentation, Jan 31, 2024
Slide 1: First Financial Corporation THFF
1 : THFF
Slide 2: Forward-looking Information
Forward-looking Information This presentation contains future oral and written statements of the Company and its management, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, ob
Slide 3: Presenting management
Norman D. Lowery President & Chief Executive Officer Rodger A. McHargue Chief Financial Officer, SVP Stephen P. Panagouleas Central Credit Administration Manager 3
Slide 4: First Financial Corporation
First Financial Corporation Indiana’s first multi-bank holding company Established 1984 76 Locations 70 full-service banking centers 6 loan production offices $4.9 Billion in Assets December 31, 2023 $1.8 Billion Trust and Assets Under Management First Financial Bank Primary subsidiary founded in 18
Slide 5: Our Vision, Mission and Values
Our Vision To enhance our clients’ abilities to spend, save, borrow and invest. Our Mission To deliver financial solutions that are simple, fast and easy. Our Values We build strong relationships and treat each other with dignity and respect. We embrace the diversity of our customers and co-workers.
Slide 6: Strong Capital
TBV $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 10 YR CAGR 4.37% Strong Capital Key Capital Ratios and Per Share Data As of December 31, 2023 0.00% 3.50% 7.00% 10.50% 14.00% 17.50% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 TC
Slide 7: History of Earnings and Dividend Growth
2.37 2.55 2.35 3.12 2.38 3.80 3.80 3.93 4.02 5.82 5.08 0.96 0.97 0.98 0.99 2.50 1.02 1.02 1.04 1.06 1.17 1.28 '- 1.50 3.00 4.50 6.00 7.50 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Earnings and Dividends Per Share EPS Dividends Paid 10 YR CAGR 2013 - 2023 EPS 11.43% Dividends 3.33% Histo
Slide 8: History of Shares Repurchases
Announced Repurchase Amount Shares Amount Completed April 21, 2022 10% 1,243,531 In Progress ** July 21, 2021 5% 652,411 $28,335,713 3/4/22 October 29, 2020 5% 685,726 $29,300,476 6/25/21 February 3, 2016 5% 637,500 $21,677,750 11/30/20 August 25, 2014 5% 667,700 $21,627,262 8/19/15 **As of 12/31/20
Slide 9: Strong Asset Quality
FFIEC BHC UBPR Data • Centralized committee structure • We are an in-market lender to clients • Disciplined underwriting Net Charge-offs 0.08% 0.06% 0.05% 0.07% 0.06% 0.00% 0.04% 0.08% 0.11% 0.15% '- 800 1,600 2,400 3,200 4Q22 1Q23 2Q23 3Q23 4Q23 Dollar ($000) % Total Loans 1.46% 1.29% 1.29% 1.28% 1
Slide 10: Better than Peer Performance
FFIEC BHC UBPR Data Return on Assets 1.61 1.22 1.32 1.12 1.00 0.88 0.93 0.77 0.91 0.93 0.9 0.9 0.98 0.94 0.79 0.71 '- 2016 2017 2018 2019 2020 2021 2022 3Q23 FFC Peer Non-interest Income % Avg Assets FFIEC BHC UBPR Data 1.30 0.98 1.56 1.42 1.25 1.10 1.41 1.32 0.92 0.95 1.22 1.19 0.97 1.25 1.17 1.09
Slide 11: Loan Growth Driving Growth in Income
Net Interest Income Loan Growth Driving Growth in Income 107,857 116,579 131,652 146,346 143,401 165,042 167,262 4.11 4.32 4.25 4.05 3.2 3.55 3.78 2.00 3.00 4.00 5.00 6.00 '- 42,500 85,000 127,500 170,000 212,500 2017 2018 2019 2020 2021 2022 2023 12.37% CAGR NII NIM $’s in (000’s) 11
Slide 12: Diversified Loan Portfolio
Loan Portfolio Balance ($000) Commercial Loans By State Total $3,159,667 Loan Portfolio ($000) Balance Percent Commercial $2,123,093 67.19% Consumer $772,180 24.44% Residential $264,394 8.37% Total $3,159,667 100% IN 43% IL 11% KY 7% TN 14% Other 25% Commercial 67.19% Consumer 24.44% Residential 8.3
Slide 13: Consumer Loan Portfolio
Total Loans $772,180,323 98.7% Secured Consumer Loans 65% ≥ 701 FICO 20% ≥ 651 to 700 12% ≥ 600 to 650 3% < 600 (Includes No Score) 68.67% Indirect Auto ($531,447,014) 13.6% New ($72,997,796) 86.4% Used ($458,449,218) Asset Quality 30 – 89 day YTD Average Past Due 1.887% $122,086,399 HELOC 15.81% $9
Slide 14: Mortgage Loan Portfolio
Total Loans $264,393,582 52.27% YTD Production Sold • Average New Production LTV 81.29% • Average New Production FICO 722 • Primarily in-market lender Portfolio • Underwritten to FHLMC Guidelines • Average credit score 726 • Average DTI 30% • Average Amortized LTV 65.8% • Updated LTV 49.7% Asset Qua
Slide 15: Commercial Real Estate Loan Mix
Residential/Multi- Family 38.92% Commercial Income Property NOO Retail/Restaurants 10.00% 24.49% Hotels and Motels 6.27% Owner Occupied CRE 7.13% Residential & Non-Residential Property Managers 4.62% Lessors of Other Real Estate Property 5.89% Mini-warehouses/Self Storage 1.34% Single Family Housing
Slide 16: Commercial & Industrial Loan Mix
Agriculture 25.162% Construction 6.134% Health Services 6.559% Banking & Financial Services 4.011% Floor Plan & Auto Industry 4.013% Retail Eating Establishments 0.980% Other Retail+Convenience 5.003% Transportation 4.774% Manufacturing 2.454% Personal Services 10.122% Government Entities 7.838% Sch
Slide 17: Commercial Production Pipeline
Commercial Production Pipeline As of December 31, 2023 Production YTD REGION Pipeline New Money Central $177,370,000 $111,451,000 West $215,150,000 $108,237,000 Southern $139,200,000 $126,616,000 Mid-South $238,225,000 $152,079,000 Indy/ Ft. Wayne LPO $134,482,000 $90,225,000 Total $904,427,000 $588
Slide 18: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit Mix 0.63% 0.38% 0.25% 0.19%0.16%0.17% 0.25% 0.37% 0.56% 0.36% 0.20% 0.38% 1.26% 0.00% 0.45% 0.90% 1.35% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cost of Deposits 0.16 0.23 0.32 0.50 0.32 0.18 0.36 0.85 0.45 0.54 0.75 0.95 0.54 0.20 0.44 1
Slide 19: Disciplined Expense Management
$90,308 $88,747 $91,289 $104,348 $112,758 $117,406 $126,023 $130,176 0 32500 65000 97500 130000 162500 2016 2017 2018 2019 2020 2021 2022 2023 59.4 61.62 58.43 61.23 59.87 63.33 59.51 60.18 68.42 62.21 61.22 61.65 61.22 60.88 59.84 61.96 45.0 51.0 57.0 63.0 69.0 75.0 2016 2017 2018 2019 2020 2021 20
Slide 20: Trust and Asset Management
$1.8 Billion Trust Assets Under Management Trust & Asset Management 2022 2023 Revenue ($000) 5,155 5,155 Income before Tax 1,586 1,258 Trust and Asset Management 20 Trust Services include: • Professional Farm Management • Trust Administration • Estate Administration • Retirement Services • Corporate
Slide 21: Key Investment Points
Well-positioned for sustainable and profitable growth • Diversified business model with strong risk management • High-caliber team members focused on customer service and technology optimization • Expanding presence in larger growth markets • Commercial banking focus with quality core deposits • Dem
Slide 22: 3-Year Financial Highlights
2020 2021 2022 2023 Net Interest Income 146,346 143,401 165,042 167,262 Provision 10,528 2,466 <2,025> 7,295 Non-interest Income 42,476 42,084 46,716 42,702 Non-interest Expense 112,758 117,406 126,023 130,176 Net Income 53,844 52,987 71,109 60,672 Earnings Per Share (diluted) 3.93 4.02 5.82 5.08 To
Slide 23: Appendix A
Appendix A 23
Slide 24: SimplyBank Overview
t Financial Highlights(1) Market Overview(2) Knoxville, TN (MSA) Cleveland, TN (MSA) Meigs, TN (County) Dayton, TN (MSA) Chattanooga, TN-GA (MSA) Simply (13) SimplyBank Overview 24 ($000s) 2022Y 2023Q1 2023Q2 2023Q3 Balance Sheet Total As s ets 692,789 693,962 699,227 701,819 Total Loans HFI 544,059
Slide 25: Transaction Assumptions and Pro Forma Capital Ratios
Including AOCI & Rate Marks Excluding AOCI & Rate Marks(2) Pro Forma Capital Ratios at Close TBV Acc. / (Dil.) TBV Earnback ’25E EPS Acc. TBV Acc. / (Dil.) TBV Earnback ’25E EPS Acc. TCE Leverage CET1 Tier 1 Total Capital TCE Leverage CET1 Tier 1 Total Capital (13.6)% 3.0 years 32.1% (5.0)% 2.1 year
Slide 26: Pro Forma Overview
1-4 Family & HELOC 16% OO CRE 4% NOO CRE 14% Multifamily 6% C&D 12% C&I Agriculturial & 19% Farm 7% Consumer & Other 22% Non-interest Bearing 20% IB, MMDA & Savings 66% Retail CDs 7% Jumbo CDs 7% Key Highlights(1) Pro Forma Branch Map Pro Forma Loan & Deposit Composition(2) Deposit Portfolio Total A
Slide 27: Strategic Rationale for SimplyBank Acquisition
§ Expands footprint into Southeastern Tennessee and Northern Georgia § Deploy our non-lending products across SimplyBank’s current footprint and clientele § Boosts earnings profile while maintaining a strong capital position Strategic Markets Financials Risk Profile § Expands franchise into higher-g
Slide 28: Thank You
Norman D. Lowery President and CEO lowerynd@first-online.com 812.238.6185 Rodger A. McHargue Chief Financial Officer, SVP rmchargue@first-online.com 812.238.6334 Stephen P. Panagouleas Central Credit Administration Manager spanagouleas@first-online.com 812.238.6431 Thank You! : THFF
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