Slide 1: First Financial Bancorp Investor Presentation Second Quarter 2009
Exhibit 99.1 First Financial Bancorp Investor Presentation Second Quarter 2009
Slide 2: Forward-Looking Statement Disclosure
Forward-Looking Statement Disclosure This presentation should be read in conjunction with the consolidated financial statements, notes and tables in First Financial Bancorp’s most recent Annual Report on Form 10-K for the year ended December 31, 2008. Management’s analysis contains forward-looking s
Slide 3: Investment Highlights
Investment Highlights Strong operating fundamentals have produced positive results Corporate Overview 1 Total Assets: $3.8 billion throughout the recessionary period Total Loans: $2.9 billion Capital and liquidity significantly exceed amounts necessary to be Total Deposits: $2.8 billion classified a
Slide 4: History
History 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 Consolidated and streamlined company to establish one charter and one bra
Slide 5: Reorganization Plan - Timeline
Reorganization Plan - Timeline May 2006 December 2007 November 2005 February 2009 September 2005 Branch Plan August 2006 May 2007 Completed Dayton Market Cincinnati Market Fidelity Sale Announced Problem Loan Mortgage Servicing Rebuilding & Reorganization Expansion Sale to PHH Mortgage portion of St
Slide 6: Business Units
Business Units Retail Banking Commercial Banking Wealth Management 6
Slide 7: Corporate Goals
Corporate Goals Top-quartile performance for all stakeholders Sustained and consistent excellence Commitment to growth Effective management of all risks 7
Slide 8: Growth Plan
Growth Plan Primary focus and value creation is through organic growth in 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 i
Slide 9: Business Strategy
Business Strategy Our Markets Client “Intimate” Strategy Northwest Indiana Strategic Focus: build long-term relationships with North Central Indiana clients by identifying and meeting their financial Indianapolis - Indiana needs South Central Indiana Target clients Northern Ohio Individuals and smal
Slide 10: Market Expansion Opportunities
Market Expansion Opportunities Track record of profitability combined with a strong balance sheet has allowed the company to make strategic decisions and take advantage of market expansion opportunities Purchased 19 banking centers, approximately $538 million in deposits and approximately $436 milli
Slide 11: Highlights of Banking Center Acquisitions
Highlights of Banking Center Acquisitions 19 banking centers from Peoples in Cincinnati MSA Low-risk transaction Loans purchased under loss sharing agreement with the FDIC for total loss protection of 88.5% Loss sharing arrangement provides significant protection on the acquired loan and foreclosed
Slide 12: Deposit & Loan Composition - Peoples Community Bank
Deposit & Loan Composition Peoples Community Bank Deposit Composition Loan Portfolio ($ in millions) ($ in millions) $12.8 1 – 4 Family Residential Real $85.3 2.4% DDA $44.9 Estate – Owner Occupied 19.5% $33.7 10.3% 6.3% NOW Other Residential Real Estate $343.5 Savings Commercial Real Estate 63.8% T
Slide 13: Deposit & Loan Composition - Irwin Union Bank and Trust
Deposit & Loan Composition Irwin Union Bank and Trust Company Deposit Composition 1 Loan Portfolio 2 ($ in millions) ($ in millions) $1.1 Commercial & Industrial $87.7 0.8% Time Deposits $0.5 61.2% 0.3% Real Estate - Construction Transaction Deposits Real Estate - Commercial $0.5 0.3% Real Estate -
Slide 14: Demographic Profile
Demographic Profile Demographic Profile (First Financial Bancorp) Deposit, Market Share and Population Data as of June 30, 2008 Number Number Projected Total Deposits FFBC Deposits FFBC Deposit Population of FFBC of FFBC State Market in Market in Market Market Share Change Banking Banking 3 1 2 ($00
Slide 15: Retail Banking
Retail Banking Strategic Focus Deposits Select consumer lending activities 101 banking centers Serving 9 regional markets in 60 communities in 3 states Managed locally by experienced local bankers Supported centrally 15
Slide 16: Commercial Banking
Commercial Banking 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 50 Commercial Lenders 11 Treasury Management Representatives 16
Slide 17: Wealth Management
Wealth Management First Financial Wealth Resource Group Trust Brokerage Investment Advisor Life Insurance Strategic Focus Maintain existing client base Increase share of wallet of existing client base Integration with retail and commercial banking clients 17
Slide 18: Credit Management System
Credit Management System Market-Based Centralized First Financial Bancorp / Bank CEO Market Level Chief Credit Executive Vice Officer President Markets Central Regional Credit Market Officers Documentation/ Presidents Filing Commercial Real Special Assets Commercial Estate Specialist Collections Len
Slide 19: Credit Quality
Credit Quality June 30, 2009 Credit quality trends remained relatively stable and within expected range throughout most of economic downturn Reflecting discipline of originating loans within existing footprint, strong underwriting policies, and proactive management of resolution strategies for probl
Slide 20: Credit Quality - Net Charge-offs to Average Loans & Leases
Credit Quality Net Charge-offs to Average Loans & Leases 1.18%1.19% Peer Group I (size) Peer Group II (geography) FFBC 0.55% 0.89% 0.85% 0.73% 0.74% 0.65% 0.60% 0.20% 0.55% 0.46% 0.47% 0.38% 0.40% 0.40% 0.36% 0.37% 0.36% 0.44% 0.33% 0.28% 0.28% 0.24% 0.26% 0.22% 0.22% 0.23% 0.23% 0.19% 0.15% 0.10% 1
Slide 21: Credit Quality - Allowance to Nonperforming Loans
Credit Quality Allowance for Loans & Leases to Nonperforming Loans Peer Group I (size) Peer Group II (geography) FFBC 260% 241% 222% 212% 216% 209% 198% 195% 197% 193% 187% 162% 151% 155% 152% 146% 141% 136% 100% 101% 102% 90% 90% 80% 79% 76% 72% 70% 67% 1Q-07 2Q-07 3Q-07 4Q-07 1Q-08 2Q-08 3Q-08 4Q-
Slide 22: Credit Quality - Nonperforming Loans to Total Loans
Credit Quality Nonperforming Loans to Total Loans Peer Group I (size) Peer Group II (geography) FFBC 3.34% 2.65% 2.31% 2.21% 2.04% 1.62% 1.46% 1.46% 1.31% 1.19% 1.12% 0.91% 0.91% 0.83% 0.81% 0.76% 0.70% 0.68% 0.65% 0.59% 0.56% 0.58% 0.57% 0.53% 0.49% 0.55% 0.53% 0.43% 0.45% 1Q-07 2Q-07 3Q-07 4Q-07 1
Slide 23: Capital
Capital Regulatory Excess consolidated capital of $246.6 Ratio 2Q-09 Target "well-capitalized" million over regulatory minimum required minimum EOP Tangible Equity / level EOP Tangible Assets 11.14% 6.75% - 7.25% N/A EOP Tangible Common Equity / Based on “well-capitalized” requirements, EOP Tangible
Slide 24: Capital Raise
Capital Raise Common Share Offering Completed a public offering of 13.8 million shares at $7.50 per share Net proceeds of approximately $98 million after deducting underwriting discounts, commissions and estimated offering expenses Additional shares issued during the second quarter of 2009 had a min
Slide 25: Participation in the U.S. Treasury Capital Purchase Program
Participation in the U.S. Treasury Capital Purchase Program Issued and sold to Treasury 80,000 shares of Series A Senior Preferred Stock for an aggregate purchase price of $80 million 1 Liquidation preference of $1,000 per share Warrant to purchase up to 930,233 common shares, without par value at a
Slide 26: CPP Investment Portfolio
CPP Investment Portfolio June 30, 2009 Established CPP Investment Portfolio with proceeds received from Treasury Totaled approximately $60 million at June 30, 2009, compared with $225 million at March 31, 2009, and $122 million at December 31, 2008 Earnings from the CPP Investment Portfolio in the f
Slide 27: Financial Information
Financial Information
Slide 28: Second Quarter 2009 Results
Second Quarter 2009 Results Reported net income of $0.5 million or $0.01 per diluted common share Second quarter 2009 results were impacted by: $6.1 million increase in provision expense and a higher level of net charge-offs Elevated FDIC deposit insurance expense of $3.4 million, including a $1.7 m
Slide 29: Summary of Items Impacting Earnings Per Diluted Common Share
Summary of Items Impacting Earnings Per Diluted Common Share The following table presents earnings excluding significant items impacting performance 1 ($ in thousands, excluding per share data) 2009 2008 2007 Year-to- 2Q 1Q Full-Year 4Q 3Q 2Q 1Q Full-Year 4Q 3Q 2Q 1Q Date Gain (Loss) on FHLMC shares
Slide 30: Earnings Per Diluted Common Share
Earnings Per Diluted Common Share $0.29 $0.24 $0.23 $0.22 $0.22 $0.21 $0.21 $0.21 $0.21 $0.21 $0.20 $0.20 $0.19 $0.17 $0.15 $0.14 $0.14 $0.08 $0.06 $0.01 1Q-07 2Q-07 3Q-07 4Q-07 1Q-08 2Q-08 3Q-08 4Q-08 1Q-09 2Q-09 GAAP Earnings Per Share Earnings Per Share1 1 Reflects the impact of certain non-recur
Slide 31: Pre-Tax, Pre-Provision Income Excluding Significant Items
Pre-Tax, Pre-Provision Income Excluding Significant Items The following table presents pre-tax, pre-provision income excluding significant items 1 ($ in thousands) Quarter Year-to-Date June 30, June 30, 2Q-09 1Q-09 2Q-08 2009 2008 Pre-Tax Income $ 2,152 $ 8,768 $ 11,700 $ 10,920 $ 22,581 Excluding P
Slide 32: Net Interest Margin
Net Interest Margin 7.00% 6.00% 5.00% 4.12% 4.00% 3.97% 3.88% 3.79% 3.78% 3.72% 3.68% 3.67% 3.61% 3.60% 3.00% 2.00% 1.00% 0.00% 1Q-07 2Q-07 3Q-07 4Q-07 1Q-08 2Q-08 3Q-08 4Q-08 1Q-09 2Q-09 Earning Asset Yield Liability Cost Net Interest Margin Fed Funds Target Rate 1 1 Represents the Fed Funds Target
Slide 33: Loan Composition
Loan Composition June 30, 2009 5% 4% 50% 4% 41% 12% 11% 43% Owner Occupied - $51 4.7 million Single Issuer Loan Participations - $49.8 million Acquisition & Land Development - $66.5 million Non-Owner Occupied - $624.4 million 30% 4% Commercial Real Estate Commercial & Industrial HELOC Residential Re
Slide 34: Earning Assets & Loan Composition
Earning Assets & Loan Composition Average End of Period Earning Assets Loan Portfolio Composition Yield 6.6% 6.9% 5.9% 4.9% 14% 12% 14% 22% 8.0% 8.2% 5.7% 3.9% 7.9% 7.8% 7.6% 15% 6.5% 17% 13% 5.5% 5.6% 12% 5.6% 20% 16% 5.5% 24% 10% 57% 56% 6.1% 5.1% 53% 6.7% 7.1% 45% 8.0% 7.9% 5.7% 4.4% 1 FY-2006 FY
Slide 35: Loan Strategy
Loan Strategy Average Total Loans Second quarter 2009 average total loans increased ($ in millions) $26.1 million or 3.9% from first quarter 2009 $2,738 $2,708 $2,712 $2,689 Driven primarily by 9.2% growth in commercial lending $2,645 portfolios $2,593 Overall declines in the average consumer lendin
Slide 36: Loan Portfolio Strategy
Loan Portfolio Strategy Growth Since 2005 1 Indirect Installments (91%) Residential Mortgages (56%) Commercial Lending 62% (450,000) (350,000) (250,000) (150,000) (50,000) 50,000 150,000 250,000 350,000 450,000 550,000 650,000 750,000 850,000 ($000s) Gross loan CAGR = 2.3% due to planned runoff in i
Slide 37: Investment Portfolio
Investment Portfolio June 30, 2009 On-going review of various strategies to increase the size of the investment portfolio and its absolute level of earnings, while balancing capital and liquidity targets Represents approximately 14.8% of total assets Portfolio selection criteria avoids securities ba
Slide 38: Investment Portfolio
Investment Portfolio June 30, 2009 Sector Allocation Credit Quality MBSs (Agency) Investment Grade 70% 96% Agency Preferred 0.0% CMOs (Private) Not Rated CMOs (Agency) Other * Municipal 3% Other Investment 0% Agencies 5% Non-Investment Grade 12% 7% 6% Grade 1% 0% * Other includes regulatory stock In
Slide 39: Liability Mix & Deposit Composition
Liability Mix & Deposit Composition Average End of Period Liability Mix Deposit Portfolio Composition Yield 3.0% 3.4% 2.5% 1.6% 7% 6% 42% 42% 41% 40% 10% 12% 40% 41% 38% 3.9% 4.5% 4.0% 3.0% 35% 44% 45% 43% 42% 40% 40% 39% 40% 1.8% 2.0% 0.8% 0.2% 16% 13% 13% 13% 0.0%15% 0.0% 15% 0.0% 0.0% 15% 13% FY-
Slide 40: Deposit Strategy
Deposit Strategy Average Total Deposits Second quarter 2009 average total deposits increased ($ in millions) $2,832 $2,833 $11.5 million or 1.6% from first quarter 2009 $2,822 Driven primarily by 5.2% growth in transaction and $2,795 $2,783 savings deposits $2,780 Growth assisted by deposit-pricing
Slide 41: Noninterest Income
Noninterest Income 13% Year-to-Date 2009 Total Noninterest Income = $26.1 million 25% Trust & Investment Advisory Fees - $6.5 million 17% Service Charges on Deposits - $8.4 million Gain on Mortgage Loan Sales - $0.8 million Bankcard Income - $2.7 million Other Misc. Income - $4.4 million Gains on Sa
Slide 42: Efficiency
Efficiency Efficiency Ratio 80.0% 75.0% 70.0% 65.0% 60.0% Long-Term Target = 55% to 60% 55.0% 50.0% 45.0% 40.0% FY-2004 FY-2005 FY-2006 FY-2007 FY-2008 YTD-2009 YTD-2009 = January 1, 2009 – June 30, 2009 42
Slide 43: Staffing Level
Staffing Level Full-Time Equivalent Personnel 1,400 1,200 1,000 800 600 400 200 0 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 43
Slide 44: Leadership
Leadership
Slide 45: Leadership
Leadership Claude E. Davis President & Chief Executive Officer Claude E. Davis joined First Financial in 2004 as President, Chief Executive Officer, and a member of the Board of Directors. Mr. Davis also serves as Chairman of the Board of Directors of First Financial Bank. Prior to joining the compa
Slide 46: Leadership
Leadership Richard Barbercheck Senior Vice President & Chief Credit Officer Richard Barbercheck joined First Financial in 2005 as Senior Vice President and Chief Risk Officer, and was appointed to his current position in 2006. Mr. Barbercheck is responsible for the administration of the bank’s lendi
Slide 47: Leadership
Leadership John Sabath Senior Vice President & Chief Risk Officer John Sabath joined First Financial in 2005 as Regulatory Risk Manager. Mr. Sabbath was then promoted to Senior Risk Officer and First Vice President, and assumed his current position in 2008. He is responsible for management of the co
Slide 48: About First Financial Bancorp
About First Financial Bancorp First Financial Bancorp is a Cincinnati, Ohio based bank holding company with $3.8 billion in assets. Its banking subsidiary, First Financial Bank, N.A., founded in 1863, provides retail and commercial banking products and services, and investment and insurance products
Slide 49: Another step on the path to success
Another step on the path to success