First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Day (August 2012)
20 slides from First Financial Bancorp's investor day presentation, Aug 15, 2012
Slide 1: Commercial Banking
Commercial Banking C. Douglas Lefferson EVP & Chief Banking Officer Investor Day August 15, 2012
Slide 2: Commercial Banking
Commercial Banking 41 C&I / owner-occupied CRE and 10 ICRE lenders located across footprint with concentrations in Cincinnati, Dayton and Indianapolis 10 specialty lenders (franchise, asset based lending and equipment finance) 13 treasury management advisors Serving over 8,600 commercial clients in
Slide 3: Commercial Banking Services
Commercial Banking Services Traditional Lending Specialty Lending Term loans Franchise restaurant lending Lines of credit Equipment finance – leasing Commercial real estate loans Asset based lending Construction loans Bridge financing SBA guaranteed loans Agriculture loans Letters of credit Credit c
Slide 4: Management Structure
Management Structure C. Douglas Lefferson, EVP & Chief Banking Officer Regional Regional Regional SVP ABL & SVP Treasury SVP Investor President, First President, President, Dayton President, Equipment Management CRE Franchise Capital Cincinnati, Ohio & Northern Ohio Indiana Finance C&I RMs C&I RMs C
Slide 5: Commercial Loan Composition
Commercial Loan Composition Commercial & Industrial Real Estate Target loan size is $1 million to $15 million Target loan size is $1 million to $15 million Increased focus on middle market business clients Regional and local developers and investors (generally up to $30 million revenue) Dedicated IC
Slide 6: Commercial Deposit Composition
Commercial Deposit Composition Cost of Funds: 0.32% 0.13% (0.19%) 2% 8% Significant decrease in cost of funds 58% Strong sales efforts have 69% resulted in an increase in non- interest bearing deposits Declines in higher-cost time 41% deposits and transactional 22% interest-bearing deposits 2Q11 2Q1
Slide 7: Competitive Landscape
Competitive Landscape Highly competitive market, particularly for strong credits Clients are hesitant given uncertain economic environment; using cash for capital investments vs. borrowing (de-leveraging) Maintaining underwriting standards Total Commercial Loan Balances Dollars in millions 6.7% Incr
Slide 8: Competitive Landscape
Competitive Landscape vs. Large Regional Competitors vs. Smaller Local Competitors Local market-based decision making Higher credit and lending capabilities Tenured decision makers who are Larger product set consistent and known in the markets Greater resources and capital Relationship focus Ability
Slide 9: Strategic Priorities
Strategic Priorities Asset generation and growth while maintaining credit and risk management standards Appropriate management and sales structure Balance sheet management Continuous process improvement Align incentives and compensation with other strategic objectives 9
Slide 10: Strategic Priorities – Metropolitan Markets
Strategic Priorities – Metropolitan Markets Focus on organic growth and increasing market share through: Capitalizing on opportunities in Indianapolis and Dayton Continued penetration of Cincinnati market Leveraging increased brand awareness and visibility Continued recruitment of talent Market Pres
Slide 11: Revenue Growth - Loans
Revenue Growth - Loans Top quartile performance targets on production and portfolio size Actively addressing KPI under-performance Implementing a sales culture based on results and accountability Continued growth in Greater Cincinnati region Beginning to see increased results in Dayton and Indianapo
Slide 12: Revenue Growth – Deposits
Revenue Growth – Deposits Completely re-aligned sales force and re-designed approach in 2012 Separated public funds/institutional sales from core commercial services Utilizing TM solutions advisor (“hunter”) and regional advisor (“portfolio manager”) approach Certain advisors assigned to: Target mar
Slide 13: Commercial Client Satisfaction
Commercial Client Satisfaction In-depth interviews, across all regions, with clients +$500,000 in balances Overall Satisfaction – 87% First Financial is Proactive – 83% Would Recommend – 89% Credit Services Meet Needs – 89% Deposit and Branch Services Meet Needs – 98% Website Meets Need – 98% Client
Slide 14: Efficiency
Efficiency Right size and align sales force – product specialization Rationalize the administrative and support functions in line with KPIs and the revised sales force Doubled the threshold for loans processed under the Business Banking model More efficient and timely for the client More efficient u
Slide 15: Summary
Summary Expected Results: Strong Asset Generation & Greater Efficiency Increased expectations; strong focus on execution Originations in June 2012 represent the highest production month ever Successfully broadened our product offerings Re-aligned sales force for better focus on strategic execution C
Slide 16: Franchise Lending
Another step on the path to success
Slide 17: Franchise Lending
Franchise Lending Acquired in 2009 with Irwin FDIC transaction Delivered though First Franchise Capital, a wholly-owned subsidiary of First Financial Bank Premier lender to franchised restaurant industry Relationship-driven and creative tailored financing solutions to established multi-unit operator
Slide 18: Franchise Lending
Franchise Lending Established relationships with select and proven concepts that operate nationally or in diverse regions with consistently-applied operating standards Targets 10-20 concepts with a finite number of borrowers (franchisees) nationwide Pricing is generally above standard commercial dea
Slide 19: Competitive Landscape
Competitive Landscape Competitive Position Competitive Advantages Major competitors include GE Capital, Considered top 5 lender on any relevant TCF Leasing, Bank United, Bank of franchisor list America, Wells Fargo and Regions Bank Strong “Top of Mind” awareness among Increased competition from comm
Slide 20: Biography
Biography C. Douglas Lefferson Executive Vice President & Chief Banking Officer Mr. Lefferson has spent his entire career in various positions with First Financial and was appointed to his current position in 2010 where he has responsibility for the commercial banking line of business. Prior to his
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