First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q4 2010 Earnings Presentation
38 slides from First Financial Bancorp's earnings presentation, Mar 4, 2011
Slide 1: Investor Presentation Fourth Quarter 2010
EXHIBIT 99.1 fiRST first financial bancorp Investor Presentation Fourth Quarter 2010
Slide 2: Forward-Looking Statement Disclosure
fiRST first financial bancorp Forward-Looking Statement Disclosure Sokigciearonngmeeenmeouanataates ee eekrarebierieerer materia ter) ‘Another step on the path fo succoss 2
Slide 3: Business & Strategy Review
fiRST first financial bancorp Business & Strategy Review
Slide 4: Strong operating fundamentals and prudent management have resulted in solid performance
Strong operating fundamentals and prudent management have resulted in solid performance and profitability throughout the recessionary period — 2010 ROAA of 0.91% and ROAE of 8.68% — 81 consecutive quarters of profitability Capital levels remain among industry leaders end prove aby to take dvartage o
Slide 5: Opportunities to Build Shareholder Value
Opportunities to Build Shareholder Value * Efficient and prudent use of capital in fut = Support organic growth in core strategic markets — Dividend policy — Acquisitions that meet intemal erteria — Share repurchase plans Retum to “normalized” loan loss provision, improve Risks to be Managed = Regul
Slide 6: Focused Business Strategy
fiRST first financial bancorp Focused Business Strategy * Client intimate strategy focused on long-term, profitable relationships with clients = Strong sales culture that is aggressive in attracting business with the appropriate risk and return = Lines of business = Commercial — Wealth Management *
Slide 7: Selective Acquisitions
fiRST Selective Acquisitions first financial bancorp Future = Transactions met all internal criteria for acquisitions win Sannin "= In-market locations improves operating leverage (FIC) September 18, 2009 (on acquired loans = Developed scalable covered asset and 27 banking centers $25bn deposits of
Slide 8: Low Risk Balance Sheet
fiRST first financial bancorp ‘Stress Case Low Risk Balance Sheet Total Assets by Risk Weighting % + Ren on Rak ego fast» 1.54% (Peer Mason» 1.09%) + Rak Woh Acts Tel Aste» 68605 (Peer Mdin”= 78.129) praia ‘Another step on the path fo succoss
Slide 9: 34.5% of total loans covered under FDIC loss share agreement
= 34.5% of total loans covered under FDIC loss share agreement . Seeing a —_ of improvement but overall weakness still exists in Company's strategic marke = Stress remains primarily in commercial, construction and CRE portfolios Net charge-ofs average ans & eases "Nonpetrming loans ans Nonpsfoming a
Slide 10: Financial Review
fiRST first financial bancorp Financial Review
Slide 11: Quarterly net income of $14.3 million, or $0.24 per diluted common share
Quarterly net income of $14.3 million, or $0.24 per diluted common share Full year 2010 net income available to shareholders’ of $57.4 million, or $0.99 per diluted ‘common share Continued strong profitability — Quarterly and annual return on average assets of 0.90% and 0.91%, respectively ~ Guartey
Slide 12: Primary component of capital is common equity
= Primary component of capital is common equity; continues to grow as a result of earnings: power = Announced 20% increase in the quarterly dividend to $0.12 per share = Strong capitalization levels remain among industry leaders and provides ability to take advantage of strategic opportunities Long-
Slide 13: Net Interest Margin
Net Interest Margin = Net interest margin continues to be positively impacted by the ae ee lower cost of funds related to ee the expected runoff of retail and brokered certifi posit 028% 028% 05% OHH OH. funds waste fll quarter impac a ee ee ee) So pecans 925 peta aro “me Netimterest magin Fed ds ta
Slide 14: Deposit and Loan Composition
fiRST Deposit and Loan Compo: first financial bancorp Total Deposits = $6.1 billion Gross Loans = $4.3 billion ‘As of December 31, 2010, [As of December 31, 2010, (Bots a mons) (ots in maton) svatege Acqued Non Saegie ‘Michigan and Louisille market deposts and brokered CDs, ‘Another step on the path
Slide 15: Components of Noninterest Income and Expense
fiRST est | and E: first financial bancorp ‘Components of Noninterest Income Components of Noninterest Expense For the Three Months Ended December 31, 2010 For the Three Months Ended Decomber 31, 2010 (oars a tons) (Cotas in mons) ecintoge [FDIC Loss Shang neo Other Nanstatege ‘Accelerated Dscout on
Slide 16: Acquisition-Related Items
fiRST first financial bancorp Acquisition-Related Items
Slide 17: Acquisition-related items impact
Pls: FHLB prepayment pany Presta cision nome, nt ‘of accelerated dicount, gain on ales of nommongage ‘oans and FHLB propaymont onary Zr * Represents gain on se of oars ogated by ranchse france business ‘Another step on the path fo success BE BE
Slide 18: Acquired loans under ASC accounting
. under ASC these loans. = quarter 2010, it ated to certain it an loan pools. revaluation. This improvement was recorded during the quarter as a recapture of prior period impairment “loans with improvement" listed below. ear wih ngrovemert 601128 (43%) ($432) Lean en ngaeret eoiss0stasea (5200) 230
Slide 19: Comparison of Financial Impact
fiRST Comparison of Financial Impact first financial bancorp Various Scenarios Related to Acquired Loans Extreme Cases Best Estimate “i wero to prepay mveltey, ator amin er ded share tt orto pay as would bent by $1.28 per share expeced the belo 1+ The ateohte worst case scenario ~ 9 100% ss n al cau
Slide 20: Higher reinvestment balances
= Higher reinvestment balances — Book value of acquired loans is less than the unpaid principal balance — Full payoff = increase in earning assets * Interest income is not fully offset by lower reinvestment yield * Additional capital to leverage == from discount accretion ve + Immediate repayment sc
Slide 21: Appendix
fiRST first financial bancorp Appendix
Slide 22: Loan Composition
fiRST Loan Composi geography = In-house lending limit of $15 milion — significantly below legal limit growth in 4.8%; and renewals $350 milion during er Total Loan Portfolio ~ December 31, 2010 Covered Loans - $1.5 lion . > namie ‘Another step on the path fo succoss
Slide 23: Uncovered Loans — RE Collateral
fiRST first financial bancorp Uncovered Loans — RE Collateral mall Portfolio = Commercial real estate and constructions loans located primarily in Ohio and Indiana markets Total Uncovered Loan Portfolio! December 31, 2010 —> Red ene conucion Rel ette-commert = merce Pogniton bina etepret “Another st
Slide 24: S$ sssi sm 2518 Ss s34008
S$ sssi sm 2518 05 Ss s34008 Rea esa -constucion 53803 : 16189 686 278 Rea ett -commercal 57308 nam 4482 700 ae ass725 t-test, zss202 . 33 pe ane mont ne 2190 : 97 a) : 210r ‘Another step on the path fo success
Slide 25: Revenue by Source
fiRST first financial bancorp = Strategic — Elements ofthe business that ether ‘existed prior to the acquisitions or were acquired with Revenue by Source ‘approximately 73% of total revenue is derived fro strategic businesses. Not incuding the FDIC loss sharing income, strategic operations represent
Slide 26: Funding Structure and Cost of Funds
fiRST first financial bancorp Funding Structure and Cost of Funds ability Balances End of Period ‘Another step on the path fo succass
Slide 27: Deposits
(Collars in thousands) ‘Transaction and savings accounts Total deposits 5,051, 150552 (55,566) 106,249 . si on and ts .d over $212 ‘$80 million of = Higher cost retail time and brokered certificates of deposit continue to runoff as expected . it lined to less than 3% of ‘Another step on the path fo
Slide 28: Credit Quality Comparison
fiRST first financial bancorp Credit Quality Comparison * NPLs / Loans
Slide 29: Investment portfolio
Us. Treasury notes s 136 14s oor v8 oR 108985 104 27% © 10000 oat 27 (ios apency) ; 331% ist 1003810078 1385 ) “ 00% 3 woo ° ‘MBS (agency) 0% 355 mote 045 1 Poo wae 288 1028 14216 niga 1479 are 110 10152 “01 . 914 20% 30802370207 608, 106355 TOs 3750s 0287 To Soars Too ie ies 08S ‘Wet Uneaized GaniL
Slide 30: Sector Allocation and Credit Quality
As of December 31, 2010 Sector Allocati Credit Quality asian) cs ‘omer nvestment Grade = B ated secures * ote consists primary of regulatory stock NetRatea bec halt seus sh a nonsnvesent grade ang ‘Another step on the path fo succoss Ey
Slide 31: came eiriecim merce Ce ee ee
came eiriecim merce Ce ee ee eteono ange coven we 1 ~ 20 mm oftncae eco steed sonar peta 3 co a a & osewcsto ov a eco 0 were vas ome ome Sekancancare 8 a 1B 8 i ‘Soe oe bes cid ~ oy ane 1301 " ig ‘ea me BA Tas emand een eg, = ss —— — ‘Another step on the path fo success
Slide 32: Income
Income ‘Another step on the path fo success Evy
Slide 33: Leadership
fiRST first financial bancorp Leadership
Slide 34: Claude E. Davis
Claude E. Davis President & Chi Executive Officer Mr Dav onad Fst Franca 208 as rein, Chi! Exec Oi and a mabe te Board of Dratos, Mt Dai es as Chatman ofthe Board of Drecirs of Fri Financal Bank. Proto ‘Served as Senor Vice Presigent at foe Finacial Corporaten and Charman fn Unon Bank and Tut ‘he se
Slide 35: Executive Management (continued)
fiRST Executive Management (continued) first financial bancorp Michael Cassani Executive Vice President, First Financial Wealth Management Neca "2007, management and consulting fem he co founded in 1888, Earierin hs carer, he served as Mutual Funds Product Manager at Fh ‘Thied Bank and as an Institu
Slide 36: Executive Management (continued)
fiRST Executive Management (continued) first financial bancorp Lwyman Besa "Vice President, Co-Chiet Retail Banking Officer "inane in 200 Me operating markets. She is also responsive for market services and corporate marketing. Pror to jomning the company. she spent 19 Yarn ea var so servd as gal ma
Slide 37: postion
postion ‘Commercial and fetal erect, compliance, operatonal, market. stategie and reputaton rsk. Pror fo orang the ‘Company, ne was inthe Entorpese Rsk Group at Fifth Third wank Earler in Mis carer, Mr: Saath held postions atthe Fedora ‘atonal Ci iy US Bancorp) Anthony M. Stolings Senior Vee Preside
Slide 38: Another step on the path to success
fiRST first financial bancorp ‘Another step on the path to success
First Financial Bancorp — Q4 2010 Earnings Presentation on 6ix