First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Presentation (February 2017)
33 slides from First Financial Bancorp's investor presentation, Feb 6, 2017
Slide 1: First Financial Bancorp
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Slide 2: Forward-looking statements
2 This investor presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not based on historical or current facts, but rather on our current beliefs, expectations, assumptions and projections about our busines
Slide 3: Presentation Contents
3 About First Financial Bancorp Strategic Direction Recent Financial Results Presentation Contents
Slide 4: Company Overview
4 Company Overview NASDAQ: FFBC Overview Founded: 1863 Headquarters: Cincinnati, Ohio Banking Centers: 102 Assets: $8.4 billion Loans: $5.8 billion Deposits: $6.5 billion Wealth Mgmt: $2.4 billion AUM Lines of Business Commercial / Private Banking C&I, O-CRE, ABL, Equipment Finance, Treasury, Wealth
Slide 5: Our Markets
Central OH Loans $1.0 billion Loan Growth (Y-o-Y) 25.5% Deposits $0.4 billion Deposit Market Share #16 (0.7 %) Banking Centers 6 Fortune 500 Companies 4 5 Our Markets Indianapolis Loans $0.4 billion Loan Growth (Y-o-Y) 5.6% Deposits $0.5 billion Deposit Market Share #14 (1.2%) Banking Centers 8 Fort
Slide 6: Proven Acquirer; Through the Cycle
Proven Acquirer Two FDIC-assisted acquisitions totaling $2.5 billion in assets & generating a $343 million pre- tax bargain purchase gain (2009) Two branch acquisitions of 38 offices in Indiana & Ohio (2011) Three banks in Columbus, Ohio totaling $727 million in assets (2014) Oak Street Funding, spe
Slide 7: Investments in our Business
Product expansions (since 2009) Specialty lending (~ $1.2 billion, across Franchise, Oak Street, ABL, and Equipment Finance) Mobile banking & other technology enhancements for clients Re-entry into mortgage business (2010) 2016 originations of $318 million Wealth infrastructure improvements Investme
Slide 8: Invest with First Financial
Proven & sustainable business model Well managed through the cycle Conservative operating philosophy Consistent profitability – 105 consecutive quarters Robust capital management Prudent steward of shareholders’ capital Strong asset quality Well defined M&A strategy Selective markets, products & ass
Slide 9: Total Shareholder Return
9 1 – includes dividend reinvestment 2 – peer group includes KBW regional bank index peers Invest with First Financial Total Shareholder Return1,2 172% 166% 117% 81% 62% 65% 157% 156% 50% 42% 117% 243% 197% 64% 51% 10 Year 7 Year 5 Year 3 Year FY 2016 FFBC KBW Peer Median KBW Peer Top Quartile
Slide 10: Strategic Direction
10 About First Financial Bancorp Strategic Direction Recent Financial Results
Slide 11: Strategic Overview
11 Operational Excellence • Focus on cost, efficiency & volume Client Intimacy • Strong client focus • Relationship driven Product Leadership • Develop new products, new markets & new techniques What does First Financial stand for? Strategic Overview
Slide 12: Our Strategy: Premier Business Bank
Our strategy is to be the Premier Business Bank in the markets we serve “Bank the business, bank the owner & bank the employees.” Rationale: Our value proposition – relationship banking & sophisticated solutions – resonates with and is desired by small / mid-size businesses Alignment with our compet
Slide 13: Connecting Strategy to Execution
13 Connecting Strategy to Execution 13
Slide 14: Strategic Priorities
14 Strategic Priorities Deliver top quartile shareholder returns Deploy capital in an opportunistic & risk-appropriate manner Invest in innovative solutions that enable our clients to bank with us on their terms Promote leadership & development within our communities Proactively develop leadership t
Slide 15: Recent Financial Results
15 About First Financial Bancorp Strategic Direction Recent Financial Results
Slide 16: Full Year 2016 Highlights
16 Full Year 2016 Highlights Total assets increased $290.6 million, to $8.4 billion EOP loans increased $368.7 million, or 6.8%. EOP deposits increased $346.2 million, or 5.6%. EOP investment securities decreased $113.8 million, or 5.9%. Balance Sheet Profitability Asset Quality Net Interest Income
Slide 17: 4Q 2016 Highlights
17 4Q 2016 Highlights – 105th Consecutive Quarter of Profitability Total assets increased $69.5 million, to $8.4 billion, or 3.3% annualized, compared to the linked quarter. EOP loans declined $32.0 million, or 2.2% annualized, compared to the linked quarter. EOP deposits increased $187.1 million, o
Slide 18: Strategy & Outlook
18 Strategy & Outlook Focus remains on organic growth & executing our core strategy: 1. Growing loans at risk-appropriate returns Strong organic growth opportunities resulting from the mix of markets, products & businesses built over the last five years Full year 2017 loan growth expected to be in t
Slide 19: Profitability
19 Profitability Net Income & EPS Return on Average Assets Return on Tangible Common Equity All dollars shown in millions $23.3 $22.9 $22.6 $19.8 $19.8 $0.38 $0.37 $0.36 $0.32 $0.32 4Q163Q162Q161Q164Q15 Net Income EPS $8,360 $8,322 $8,204 $8,119 $7,950 1.11% 1.09% 1.11% 0.98% 0.99% 4Q163Q162Q161Q164
Slide 20: Adjusted Net Income
20 Adjusted Net Income Reflects impact to net income from items that do not occur on a regular basis Earnings Diluted EPS Earnings Diluted EPS GAAP net income 23,294$ 0.38$ 22,850$ 0.37$ Less: noninterest income adjustments 1 - (398) Plus: noninterest expense adjustments 2,3 86 411 Subtotal 23,380 2
Slide 21: Loan Portfolio
21 Loan Portfolio Loan Product Mix (EOP) Net Loan Change (Linked Quarter) * Includes residential mortgage, home equity, installment, & credit card. All dollars shown in millions Highlights 33% 32% 33% 34% 33% 13% 14% 14% 14% 15% 29% 29% 28% 27% 27% 7% 7% 7% 6% 6% 18% 18% 19% 19% 20% $5,757 $5,790 $5
Slide 22: Loan Portfolio by Geography
22 Loan Portfolio Loan Portfolio By Geography 1 Average Loan Size & Rate 2 Nationwide Lending Platforms 1 Includes loans held for sale. Excludes purchase accounting loan marks. 2 Average loan balances in $000s, rate represents weighted average coupon & does not include loan fees 3 Includes Oak Stree
Slide 23: C&I and CRE Loans
23 Loan Portfolio C&I Loans By Industry 1 CRE Loans By Collateral 2 1 Industry types included in Other representing greater than 1% of total C&I loans include Agriculture, Public Administration, Retail Trade, Waste Management, Other Services, Educational Services, Arts, Entertainment, & Recreation,
Slide 24: Investment Portfolio
24 Investment Portfolio Total EOP investments of $1.85 billion Investment Portfolio / Total Assets = 22.0% Effective yield earned during fourth quarter = 2.58% Portfolio duration = 3.2 years Portfolio Composition Portfolio Quality Agency CMOs 22% Commercial MBS 23% Asset-backed securities 17% Agency
Slide 25: Asset Quality
25 Asset Quality Nonperforming Assets / Total Assets Classified Assets / Total Assets Allowance / Total Loans Net Charge Offs & Provision Expense All dollars shown in millions $54.3 $58.0 $59.6 $64.1 $70.1 0.64% 0.69% 0.72% 0.78% 0.86% 4Q163Q162Q161Q164Q15 NPAs NPAs / Total Assets $58.0 $57.6 $56.7
Slide 26: Net Interest Income / Net Interest Margin
26 Net Interest Income / Net Interest Margin Gross loans include loans held for sale & FDIC indemnification asset All dollars shown in millions Average Deposits Net Interest Income Average Securities Average Loans $1,817 $1,811 $1,870 $1,939 $1,934 2.58% 2.50% 2.54% 2.59% 2.44% 4Q163Q162Q161Q164Q15
Slide 27: Interest Rate Sensitivity
27 Interest Rate Sensitivity Loan Portfolio – Floating Loan Growth (1) Sensitivity Trend (Up100, Up200) (3) 26% Y-o-Y growth in floating rate lending (1) 23% Y-o-Y growth in client derivatives (2) % of loans repricing: <=3 months 58% Securities portfolio duration – 3.2 years Non-maturity, interest b
Slide 28: Noninterest Income
28 Noninterest Income Noninterest Income 4Q16 Highlights * Includes net gain on sale of investment securities & other noninterest income. All dollars shown in millions Total other noninterest income was unchanged from the linked quarter at $16.9 million Deposit service charge income was unchanged fr
Slide 29: Noninterest Expense
29 Noninterest Expense Noninterest Expense 4Q16 Highlights Efficiency Ratio All dollars shown in millions Total noninterest expense declined $0.9 million, or 1.8%, from the linked quarter Salary & benefits expense declined $1.0 million, or 3.0%, from 3Q16, which included $0.8 million of severance co
Slide 30: Capital
30 Capital Tier 1 Common Equity Tangible Book Value Total Capital Tangible Common Equity All capital numbers are considered preliminary All dollars shown in millions $654.6 $650.2 $635.5 $615.1 $597.5 $10.56 $10.50 $10.26 $9.94 $9.69 4Q163Q162Q161Q164Q15 Tangible Book Value Tangible Book Value per S
Slide 31: Appendix: Non-GAAP to GAAP Reconciliation
31 Appendix: Non-GAAP to GAAP Reconciliation Net interest income and net interest margin - fully tax equivalent Dec. 31, Sep. 30, June 30, Mar. 31, Dec. 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2016 2015 Net interest income $70,166 $68,818 $67,132 $66,555 $66,083 $272,671 $246,502 Tax equivale
Slide 32: Appendix: Non-GAAP to GAAP Reconciliation
32 Appendix: Non-GAAP to GAAP Reconciliation Additional non-GAAP ratios Dec. 31, Sep. 30, June 30, Mar. 31, Dec. 31, Dec. 31, Dec. 31, (Dollars in thousands, except per share data) 2016 2016 2016 2016 2015 2016 2015 Net income (a) $23,294 $22,850 $22,568 $19,814 $19,820 $88,526 $75,063 Average total
Slide 33: mime
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