First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q1 2018 Earnings Presentation
31 slides from First Financial Bancorp's earnings presentation, May 1, 2018
Slide 1: Investor Presentation First Quarter 2018
Investor Presentation First Quarter 2018 EXHIBIT 99.1
Slide 2: Forward Looking Statement Disclosure
Forward Looking Statement Disclosure 2 Certain statements contained in this presentation which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,
Slide 3: Presentation Contents
Presentation Contents About First Financial Bancorp Financial Performance FFBC 1Q 2018 Standalone Appendix 3
Slide 4: Company Overview
Company Overview 4 www.bankatfirst.com Overview Founded: 1863 Headquarters: Cincinnati, Ohio Banking Centers: 190 Assets: $13.5 billion1 Loans: $9.1 billion1 Deposits: $10.5 billion1 Wealth Mgmt: $5.0 billion $3.0 billion AUM $2.0 billion brokerage NASDAQ: FFBC $29.35 $26.35$26.15$27.70$27.45 2.59%2
Slide 5: Market Centric Strategies
Market Centric Strategies 5 METRO MARKETS COMMUNITY MARKETS HEADQUARTERS NATIONAL Louisville, KY Columbus, OH Indianapolis, IN Dayton, OH Southeastern IN South Central IN Northwest IN Northern OH Greater Cincinnati Northern KY Industry Specific Low brand awareness Low market share High brand awarene
Slide 6: 2018 Priorities
2018 Priorities 6 Successful integration of the two companies Minimal customer disruption/quick recovery Develop cohesive leadership team and culture that is embraced by our associates Achieve expense savings and deliver the financial returns we communicated to our shareholders by 1Q 2019
Slide 7: Outlook – Combined Company
Outlook – Combined Company1 7 Annualized loan growth expected to be in the mid-single digits on a percentage basis, excluding divestitures and purchase accounting adjustments No significant deposit attrition expected, excluding divestitures and market exits Taxes Projected to be 3.85% - 3.90%
Slide 8: Merger Integration Update
Merger Integration Update 8 Executive management team transition complete Combined Board of Directors in placeGovernance Merger Integration Financial Considerations Phase 1 complete Technology Assessment – Complete Organizational Structure / Staffing Assessment – Complete Phase 2 ongoing
Slide 9: Combined Bank At Close – Loans and Deposits
Combined Bank At Close – Loans and Deposits High Quality, Low Risk Portfolio Well-diversified / no significant concentrations Strong credit quality profile Solid credit management & oversight Concentrations to total risk based capital comfortably within regulatory guidance 9 Loan Portfolio
Slide 10: Combined Bank At Close – Investment Portfolio
Combined Bank At Close – Investment Portfolio 10 Portfolio Composition Portfolio Quality Total EOP investments of approximately $3.2 billion Investment portfolio / total assets = approximately 23% Portfolio duration = estimated 3.7 years Agency Mortgages 46% Municipals 17% Agency commercial MB
Slide 11: Combined Bank – Capital & Profitability
Combined Bank – Capital & Profitability 11 Total Assets3 Total Capital Ratio1 ROAA ROATCE2 Tangible Common Equity Ratio1,2 Tier 1 Capital Ratio1 1 See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and resul
Slide 12: Company Overview
Company Overview 12 Claude Davis has assumed the role of Executive Chairman of the board Three-year term, then transitions to Non-executive Chairman Archie Brown, Jr. serving as President & CEO, member of the board Jointly leading the company, partnering on strategy, management & performance
Slide 13: Company Overview
Company Overview 13 Chief Banking Officer – Anthony Stollings Chief Financial Officer – Jamie Anderson Chief Administrative Officer – John Gavigan Chief Credit Officer – Bill Harrod Chief Risk Officer – Shannon Kuhl General Counsel – Karen Woods Chief Internal Auditor – Matt Burgess Ex
Slide 14: Invest with First Financial
Invest with First Financial 14 Experienced and proven management team Increased scale to invest in franchise and achieve top quartile financial returns Proven & sustainable business model Well managed through the cycle Conservative operating philosophy Consistent profitability – 110 cons
Slide 15: Invest with First Financial
Invest with First Financial 15 1 Includes dividend reinvestment 2 Peer group includes KBW regional bank index peers 3 Based on stock price as of 04/25/2018 4 Beginning date is 04/25/2017 for the 1-year return, 04/25/2015 for the 3-year return, and 04/25/2013 for the 5-year return Total Shareholder R
Slide 16: Presentation Contents
Presentation Contents About First Financial Bancorp Financial Performance FFBC 1Q 2018 Standalone Appendix 16
Slide 17: FFBC 1Q 2018 Highlights
FFBC 1Q 2018 Highlights 17 Profitability Net income = $30.5 million or $0.49 per diluted share. Adjusted net income = $32.4 million or $0.52 per diluted share1 Return on average assets = 1.40%. Adjusted return on average assets = 1.49%1 Return on average shareholders’ equity = 13.31%. Adjusted
Slide 18: MSFG 1Q 2018 Highlights
MSFG 1Q 2018 Highlights1 18 Total assets decreased $95.0, to $4.6 billion, or 8.3% annualized, compared to the linked quarter. EOP loans decreased $58.9 million, to $3.0 billion, compared to linked quarter EOP deposits decreased $66.5 million, to $3.4 billion, compared to linked quarter EOP
Slide 19: Presentation Contents
Presentation Contents About First Financial Bancorp Financial Performance FFBC 1Q 2018 Standalone Appendix 19
Slide 20: Adjusted Net Income
Adjusted Net Income1 20 The table below lists certain items that we believe are significant to understanding our quarterly performance. 53.8% 58.0%57.0% 59.7%59.6% 1Q184Q173Q172Q171Q17 Adjusted Efficiency Ratio $0.52 $0.45 $0.39$0.36$0.39 1Q184Q173Q172Q171Q17 Adjusted EPS 1.49% 1.26% 1.11%1.06%1.16%
Slide 21: Profitability
Profitability 21 Net Income & Diluted EPS Return on Average Assets Return on Tangible Common Equity1 1 Non-GAAP financial measure; see Appendix for non-GAAP reconciliation All dollars shown in millions, except per share data $30.5 $24.8$24.8 $22.7 $24.4 $0.49 $0.40$0.40$0.37 $0.39 1Q184Q173Q172Q171Q
Slide 22: Net Interest Income / Net Interest Margin
Net Interest Income / Net Interest Margin 22 1 Gross loans include loans held for sale & FDIC indemnification asset All dollars shown in millions Net Interest Income Average Loans1 Average Securities Average Deposits $75.8$75.6 $70.5 $68.5$68.9 3.84%3.82% 3.57% 3.56% 3.70% 1Q184Q173Q172Q171Q17 Net I
Slide 23: Net Interest Margin
Net Interest Margin 23 Net Interest Margin (FTE) 1Q18 NIM (FTE) Progression 3.69% 3.58% 3.43%3.41% 3.48% 0.15% 0.24% 0.14%0.15% 0.22% 3.84%3.82% 3.57%3.56% 3.70% 1Q184Q173Q172Q171Q17 Basic Margin (FTE) Loan Fees 4Q17 3.82% Asset Yields 0.17% Rising interest rates and yield expansion Covered/formerly
Slide 24: Loan Portfolio
Loan Portfolio 24 Loan Product Mix (EOP) Net Loan Change (Linked Quarter) * Includes residential mortgage, home equity, installment, & credit card loans All dollars shown in millions 33%33%33%33%32% 11%11%12%12%12% 31%30%30%30%29% 8%8%7%8%8% 17%18%18%18%18% $6,102 $6,013 $5,977 $5,874 $5,754 1Q184Q1
Slide 25: Asset Quality
Asset Quality 25 Nonperforming Assets / Total AssetsClassified Assets / Total Assets Allowance / Total Loans Net Charge Offs & Provision Expense All dollars shown in millions $87.6$87.3 $94.3$98.4 $114.6 0.98%0.98% 1.08%1.13% 1.34% 1Q184Q173Q172Q171Q17 Classified Assets Classified Assets / Total Ass
Slide 26: Capital
Capital 26 Tier 1 Common Equity Tangible Book Value Total Capital Tangible Common Equity $730.9$721.3 $705.2 $688.1 $669.7 $11.75 $11.62 $11.36 $11.07 $10.78 1Q184Q173Q172Q171Q17 Tangible Book Value Tangible Book Value per Share $730.9$721.3 $705.2 $688.1 $669.7 8.41%8.30%8.25%8.09%8.05% 1Q184Q173Q1
Slide 27: Presentation Contents
Presentation Contents About First Financial Bancorp Financial Performance FFBC 1Q 2018 Standalone Appendix 27
Slide 28: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 28 Net interest income and net interest margin - fully tax equivalent Three months ended Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2018 2017 2017 2017 2017 Net interest income $ 75,812 $ 75,614 $ 70,479 $ 68,520 $ 68,932 Tax equivalent adjustment 718 1,38
Slide 29: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 29 Additional non-GAAP ratios Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, (Dollars in thousands, except per share data) 2018 2017 2017 2017 2017 Net income (a) 30,506$ 24,811$ 24,826$ 22,736$ 24,414$ Average total shareholders' equity 929,474 920,194 908,05
Slide 30: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 30 Additional non-GAAP ratios As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 75,812$ 75,812$ 75,614$ 75,614$ 70,479$ 70,479$ 68,520$ 68,520$ 68,932$ 68,932$ Provision for loan
Slide 31: is a registered trademark of First Financial Bancorp | First Financial Bank First Financial
is a registered trademark of First Financial Bancorp | First Financial Bank First Financial Center 255 East Fifth Street Suite 800 Cincinnati, OH 45202-4248
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