First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q3 2024 Earnings Presentation
41 slides from First Financial Bancorp's earnings presentation, Nov 8, 2024
Slide 1: Investor Presentation Third Quarter 2024
investor presentation • Third Quarter 2024 Exhibit 99.1
Slide 2: Forward looking statements disclosure
forward looking statements disclosure 2 Certain statements contained in this report 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,” “ex
Slide 3: Forward looking statements disclosure
forward looking statements disclosure 3 • financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services
Slide 4: Presentation contents
About First Financial Bancorp Financial Performance Appendix presentation contents 4
Slide 5: Overview
overview Commercial C&I, O-CRE, Treasury, ABL, ESOP, Equipment Finance, Bannockburn Global Forex Retail Banking Consumer, Small Business Mortgage Banking NASDAQ: FFBC Headquarters: Cincinnati, Ohio Founded: 1863 Banking Centers: 128 Employees: 2,084 Market Cap (9/30/24): $2.4B Dividend Yield (9/30/2
Slide 6: Key investment highlights
key investment highlights • Proven & sustainable business model spanning 160 years • Premier Midwest franchise with top quartile performance • Consistent profitability – 136 consecutive quarters • High quality balance sheet & robust capital position (12.04% CET1) • Prudent risk management & credit c
Slide 7: Consistent best-in-class earnings
consistent best-in-class earnings 7 Return on Average Assets 1 KRX calculated as the top quartile of the current 50 KRX constituents. Source: S&P Capital IQ Pro 1-Year 3-Year 2Q18-3Q24 (since merger) 80% Percentile Rank KRX Top Quartile1 1.26% 81% Percentile Rank 1.22% 1.37% 1.23% 87% Percentile Ran
Slide 8: Consistent better than market earnings growth
consistent better than market earnings growth 8 Earnings Per Share Growth 1 KRX calculated as the median of the current 50 KRX constituents. Source: S&P Capital IQ Pro 1-Year 3-Year 5-Year 10-Year 20-Year 69% Percentile Rank 10% 6% 83% Percentile Rank 85% Percentile Rank 2% 0% 64% Percentile Rank 5%
Slide 9: Complementary market centric strategies
Note: Headquarters loan and deposit balances include special assets, loan marks, and other out of market and corporately held balances. Loan balances exclude PPP balances. complementary market centric strategies Loans $3.4B / Deposits $2.9B Loans $1.8B / Deposits $5.4B Loans $4.0B / Deposits $5.4B L
Slide 10: Key company brands
key company brands Full suite of diversified financial products for individuals and businesses $18.1 Billion Assets $13.9 Billion Deposits 19.77% Adjusted MRQ ROATCE Diversified financial holding company with comprehensive and innovative solutions for individuals and businesses Wealth & asset manage
Slide 11: Diversified lines of business
The number of Trust & Investments and RPS relationships are updated as of 9/30/22. All other data as of 12/31/22. diversified lines of business 11
Slide 12: Revenue growth strategies
revenue growth strategies Distribution Technology Talent Product & Pricing • Regional pricing strategy • Treasury Management product investments • Investments in Product Management DefinedModels Enterprise Data Management • Investment in data warehouse • Enabling data as a strategic asset • Connecti
Slide 13: Presentation contents
About First Financial Bancorp Financial Performance Appendix presentation contents 13
Slide 14: 3Q 2024 results
3Q 2024 results 136th Consecutive Quarter of Profitability 14 • EOP assets decreased $19.8 million compared to the linked quarter to $18.1 billion • EOP loans increased $31.9 million compared to the linked quarter to $11.6 billion • Average deposits increased $166.2 million compared to the linked qu
Slide 15: 3Q 2024 highlights
3Q 2024 highlights • Strong quarterly earnings driven by net interest margin • Adjusted1 earnings per share – $0.67 • Adjusted1 return on assets – 1.42% • Adjusted1 pre-tax, pre-provision return on assets – 2.00% • Adjusted1 return on average tangible common equity – 19.77% • Modest loan growth duri
Slide 16: 3Q 2024 highlights
3Q 2024 highlights • Adjusted1 noninterest expense of $124.7 million, a 1.8% increase from second quarter • Adjustments1 include $0.4 million of efficiency-related costs and $0.7 million in other costs such as acquisition, severance and branch consolidation costs • Increase driven by $1.8 million in
Slide 17: Adjusted net income
adjusted net income1 17 The table below lists certain adjustments that the Company believes are significant to understanding its quarterly performance. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non
Slide 18: Profitability
profitability 18 Return on Average Assets Return on Avg Tangible Common Equity Diluted EPS 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. Adjusted1 Pre-tax, Pre-Provision Earnin
Slide 19: Net interest income & margin
net interest income & margin 19 Net Interest Margin (FTE) 2Q24 NIM (FTE) Progression Net Interest Income All dollars shown in millions $151.0$148.4 $143.9 $147.7$150.9 $3.8 $3.6 $4.0 $5.2 $4.5 $155.6 $153.3 $148.7 $153.8 $155.5 3Q242Q241Q244Q233Q23 Basic NII Loan Fees 3.98%4.00%3.99% 4.12%4.21% 0.10
Slide 20: Noninterest income
noninterest income 20 Noninterest Income 3Q24 Highlights All dollars shown in thousands • Adjusted1 fee income of $58.8 million • $13.1 million of adjustments1 include: • $17.5 million loss on securities • $9.7 million impairment loss on two skilled nursing investments • $8.0 million of losses on sa
Slide 21: Noninterest expense
noninterest expense 21 Noninterest Expense 3Q24 Highlights 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. All dollars shown in thousands • Core expenses increased $2.2 million,
Slide 22: Average balance sheet
2.50%2.51%2.48%2.49%2.44%2.30% 2.08% 1.77% -0.01%0.03%0.00%0.05% 0.14% 0.22% 0.31%0.37% SepAugJul3Q242Q241Q244Q233Q23 Cost of Deposits Change in Cost of Deposits average balance sheet 22 Average LoansAverage Securities All dollars shown in millions 1 Includes loans fees and loan accretion Deposit Co
Slide 23: Deposits
deposits 23 Deposit Product Mix (Avg) 3Q24 Average Deposit Progression All dollars shown in millions Total growth/(decline): $166.2 million -$38.5 $25.2 -$30.0 $114.2 $100.8 $35.0 -$40.5 Noninterest-bearing Interest-bearing demand Savings Money Markets Retail CDs Brokered Deposits Public Funds Nonin
Slide 24: Average deposit trends
average deposit trends 24 All dollars shown in millions Business Public Funds Personal Uninsured Deposits $6,330$6,312$6,162$5,921$5,824$5,821 3Q242Q241Q244Q233Q232Q23 $3,974$3,824$3,823$3,913$3,789$3,664 3Q242Q241Q244Q233Q232Q23 $1,937$1,978$1,864$1,928$1,805$1,823 3Q242Q241Q244Q233Q232Q23 Uninsure
Slide 25: Deposit concentrations
deposit concentrations Business Deposits by Sector All dollars shown in millions 25 NAICS Sector 9/30/24 % of Total Deposits Manufacturing $635.3 4.6% Real Estate and Rental and Leasing 451.0 3.3% Finance and Insurance 483.4 3.5% Construction 378.7 2.7% Professional, Scientific, and Technical Servic
Slide 26: Borrowing capacity & cash/investment liquidity
26 Borrowing Capacity • Interest-bearing deposits with other banks of $661 million • Investment securities portfolio: • 97.6% of investment portfolio classified as available-for-sale • $680.9 million of expected cash flow from securities portfolio in next 12 months • $490.3 million of floating rate
Slide 27: Agile acquisition
agile acquisition 27 • Acquired February 29th • $93.4 million in loans acquired; $211.2 million as of September 30th • $5.6 million of intangibles created • Agile is a full-service specialty finance company based in Lincolnshire, IL and operates throughout the U.S. • Lends to commercial customers to
Slide 28: Loan portfolio
loan portfolio 28 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) All dollars shown in millions Total growth/(decline): $31.9 million $7.3 -$119.5 -$10.4 $5.1 $83.8 $3.4 $22.5 $39.7 ICRE Commercial & Small Business Banking Oak Street Franchise Summit Agile Consumer Mortgage ICRE $3,725 32% C
Slide 29: Loan concentrations
loan concentrations 29 C&I and Owner Occupied CRE Loans by Sector1 Investor CRE Loans by Property Type All dollars shown in millions 1 Excludes Agile Premium Finance Property Type 9/30/24 % of Total Loans Residential Multi Family 5+ $1,279.2 11.1% Retail Property 790.0 6.8% Office 434.8 3.8% Industr
Slide 30: Area of focus - office portfolio (non-owner occupied)
area of focus - office portfolio (non-owner occupied) 30 Office Property Type 1 Performance metrics based on loans greater than $2.5 million and excluding classified assets. All dollars shown in millions Office Property Market Office Maturity Schedule • $434.8 million balance represents 3.8% of tota
Slide 31: Allowance for credit losses
allowance for credit losses 31 3Q24 Highlights All dollars shown in millions • $176.0 million combined ACL; $10.6 million combined provision expense • $158.8 million ACL – loans and leases; increase driven by slower prepayments; 1.37% of loan balances • Utilized Moody’s September baseline forecast i
Slide 32: Asset quality
asset quality 32 Classified Assets / Total Assets Net Charge Offs & Provision Expense1 . 1 Provision includes both loans & leases and unfunded commitments All dollars shown in millions $65.5$62.7$59.4 $65.9 $75.1 0.36%0.35%0.34% 0.38%0.44% 3Q242Q241Q244Q233Q23 NPAs NPAs / Total Assets $16.4 $12.6 $1
Slide 33: Capital
capital 33 Tier 1 Common Equity Ratio Total Capital Ratio Tangible Common Equity Ratio 9/30 Risk Weighted Assets = $13,800,728 All capital numbers are considered preliminary. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial conditio
Slide 34: Outlook commentary
outlook commentary1 • Loan balances expected to grow mid single digits on an annualized basis • Strong average deposit balance growth expected; includes expected public fund seasonal growth • Investment portfolio expected to remain stable 34 • Total noninterest expense expected to be $126 - 128 mill
Slide 35: Presentation contents
About First Financial Bancorp Financial Performance Appendix presentation contents 35
Slide 36: Appendix: our markets
appendix: our markets • Greater Cincinnati/Dayton • Loans $4.4 billion • Deposits $6.2 billion • Deposit Market Share #4 (3.4%) • Banking Centers 48 • Fortune 500 Companies 7 • Indianapolis • Loans $1.0 billion • Deposits $0.8 billion • Deposit Market Share #14 (1.2%) • Banking Centers 10 • Fortune
Slide 37: Non-GAAP financial information
The Company’s Investor Presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial information should be considered supplemental to, and not as a substitute for,
Slide 38: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 38 All dollars shown in thousands Net interest income and net interest margin - fully tax equivalent Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, 2024 2024 2024 2023 2023 Net interest income 155,560$ 153,311$ 148,740$ 153,765$ 155,455$ Tax equivalent adjustm
Slide 39: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 39 All dollars shown in thousands Additional non-GAAP ratios Sep. 30, June 30, Mar. 31, Dec. 31, Sep. 30, (Dollars in thousands, except per share data) 2024 2024 2024 2023 2023 Net income (a) 52,451$ 60,805$ 50,689$ 56,732$ 63,061$ Average total shareholders
Slide 40: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 40 All dollars shown in thousands Additional non-GAAP measures 1Q24 4Q23 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 155,560$ 155,560$ 153,311$ 153,311$ 148,740$ 148,740$ 153,765$ 153,765$ Provi
Slide 41: First Financial Bancorp
First Financial Bancorp First Financial Center 255 East Fifth Street Cincinnati, OH 45202
First Financial Bancorp — Q3 2024 Earnings Presentation on 6ix