First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Presentation (September 2008)
44 slides from First Financial Bancorp's investor presentation, Sep 4, 2008
Slide 1: First Financial Bancorp Investor Presentation
First Financial Bancorp Investor Presentation
Slide 2: Forward-looking statements
Certain statements that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the Act). In addition, certain statements in future filings by First Financial with the Securities and Exchange Commission, in press
Slide 3: Corporate Overview (06/30/08)
| bancorp Corporate Overview (06/30/08) Total Assets: $3.5 billion = Successfully executing strategic plan Total Loans: $2.7 bill Total Deposits $2.8 billion ‘ " Stable and strong credit quality Eom Dr crater San eee — Nonperforming loans / total loans: 0.57%* —_| 1°58 FTEs m Trading Statistics = Ca
Slide 4: Agenda
Investor Presentation Our History Our Business Our Operating Model Financial Information Credit Building on Results Leadership
Slide 5: Our History
Our History
Slide 6: First Financial Bank founded in 1863; Strategic Plan
= First Financial Bank was founded in 1863 = 16 bank/thrift acquisitions from 1989 through 1999 resulted in multiple bank charters and brand identities = Established Strategic (Rebuilding & Reorganization) Plan in March 2005 Y Consolidated and streamlined company to establish one charter and one bra
Slide 7: Strategic Plan timeline 2005-2008
December 2005 December 2007 September 2005 pavton Market April 2008 August 2006 Completed Fidelity Sale Branch Plan Problem Loan Rebuilding & Reorganization February 2006 announced Sale une 2007 portion of Strategic Plan Mortgage Servicing March 2005 to PHH Mortgage ‘August 2008 Strategic Plan Yecem
Slide 8: Our Business
Our Business
Slide 9: Client Intimate Strategy
cial bancorp: = Client “Intimate” Strategy — Strategic Focus: build long-term relationships with clients by identifying and meeting their financial needs = Target clients — Individuals and small / mid-size private businesses located within the regional markets we serve = Ohio, Indiana, Kentucky — Se
Slide 10: Regional markets map
I Northwest Indiana BB North Central Indiana Bl Indianapolis - Indiana LB South Central Indiana DD Norther Ohio i Dayton / Middletown - Ohio Bl Butler / Warren County - Chio Bl Cincinnati - Chio I Northern Kentucky Another step on the path to success 10
Slide 11: Organic growth and acquisition strategy
= Primary focus and value creation is through organic growth in our key regional markets = Acquisitions can advance market position and accelerate the timing of market share compared with an organic growth only strategy — Pricing must be discipline and favorable compared with the longer- term organi
Slide 12: Top-quartile performance for all stakeholders
= Top-quartile performance for all stakeholders = Sustained and consistent excellence = Commitment to growth = Effective management of all risks ‘Another step on the path to success 2
Slide 13: Our Operating Model
Our Operating Model
Slide 14: Retail, Commercial, Wealth Management
= Retail Banking = Commercial Banking = Wealth Management ‘Another step on the path to success 4
Slide 15: Retail Banking strategic focus
= Strategic Focus — Retail consumer clients — Deposits — Select consumer lending activities = 80 retail branch locations = Serving 9 regional markets in 53 communities in 3 states = Managed locally by experienced local bankers = Supported centrally ‘Another step on the path to success 18
Slide 16: Demographic Profile
Demographic Profile Demographic Profile (First Financial Bancorp) Data as of December 31, 2007] Projected Projected HH Frec Population Population Hitincome Income Number of Total FFEC Deposit 2007 Total Change Change Median HH Change Change FFEC Depositsin Deposttsin Market Population 2000-2007 2007
Slide 17: Commercial Banking strategic focus
= Strategic Focus — Small / mid-size private businesses located within our regional markets — Commercial & Industrial — Commercial Real Estate — Deposits / Cash Management = Sales Force ~ 9 Market Presidents 44 Commercial Lenders — 12 Treasury Management Representatives ‘Another step on the path to
Slide 18: First Financial Wealth Resource Group
= First Financial Wealth Resource Group = Strategic Focus Target client has assets available for investment exceeding $750,000 Maintain existing client base Increase share of wallet of existing client base Integration with retail and commercial banking clients Generate referrals from existing client
Slide 19: Assets Managed
Assets Managed ($ in millions) Trust Assets under Management $2,000 Proprietary Mutual Funds $ Proprietary Investment Strategies $ Brokerage Client Assets $ Private Banking Loans $ Deposits $ 432 188 423 289 183 Another step on the path to success 19
Slide 20: Managing Two Distinct Businesses
Managing Two Distinct Businesses $2 Billion in assets under management ing emphasis ~ requires + Preserve value + Provide stability ‘+ Develop offering that is competitive in today's landscape ‘+ Improve integration strategies within Bank ‘+ Develop sales teams to bring new relationships into compan
Slide 21: Financial Information
Financial Information
Slide 22: Earning asset mix and yield
Yield 6.59% Yield 6.86% Yield 6.13% 100% 75% 50% 25% 0% ‘Average FY-2006 Average FY-2007 Average YTD-2008 O Commercial Loans & Leases @ Consumer Loans Residential Mortgages. Gi Investments Yield presented is not tax-equivalent YTD-2008 = January 1, 2008 ~ June 30, 2008 ‘Another step on the path to s
Slide 23: Loan Portfolio Strategy
fiRST first financial bancorp Loan Portfolio Strategy Growth Since 2005* Indirect installments Residential Mortgages Commercial Lending (36%) (79%) (400,000) (300,000) (200,000) (100,000) 100,000 200,000 300,000 400,000 500,000 ($000s) = Gross loan 2% year CAGR = 1.2% due to planned runoff in indire
Slide 24: Funding mix and cost
Yield 2.59% Yield 2.92% Yield 2.38% 100% 5 75% 4 50% + 25% 4 0% T Average FY-2006 Average FY-2007 Average YTD-2008 OG Noninterest-Bearing Deposits @Interest-Bearing Deposits Time Deposits @ Borrowed Funds YTD-2008 = January 1, 2008 - June 30, 2008 ‘Another step on the path to success 24
Slide 25: Noninterest income composition
YTD-2008 Total Noninterest Income = $28.6 million (excluding non-operating items) B Trust & I/A fees @ Total Service Charges on Deposits Gain on Mortgage Loan Sales @ Bankcard Interchange Income O Other Misc. Income 10% 1% 34% ‘Another step on the path to success 25 YTD-2008 = January 1, 2008 ~ June
Slide 26: Efficiency Ratio
Efficiency Ratio FY-2004 FY-2005 FY-2006 FY-2007_ YTD-2008 YTD-2008 = January 1, 2008 - June 30, 2008 ‘Another step on the path to success 26
Slide 27: Full-Time Equivalent Personnel
Full-Time Equivalent Personnel Jun-06 Sep-06 Dec-06 Mar-O07 Jun07 Sep-07 Dec-07 Jun-08 ‘Another step on the path to success a
Slide 28: Excess capital and capital philosophy
= Excess capital of $69.3 million over regulatory “well-capitalized” levels = Can support growth of up to $692.8 million Capital Philosophy levels and strategies defined in Capital Plan Dividends increase when sustainable Share Repurchase when prudent 6.75% to 7.25% June 30, 2008 7.18% f TARGET VW i
Slide 29: Investment portfolio summary
Base 06/30/2008 = Gain! Mark Summary: Total value Yield Agency's 14.2%] 66,070,389 | 5.29 CMO's (Agency) 0.3% 1,481,498 3.97 CMO's (Private) 0.0% 134,459] 3.96 MBS's (Agency) 64.8%] 301,519,163] 4.99 Agency Preferred 0.8% 3,598,000 7.65 Subtota/| 80.1%] 372,803,509 5.07 Municipal Other * 53, 505,030
Slide 30: Sector Allocation and Credit Quality
Sector Allocation Credit Quality Other investment pin Nondnvestment Agencys Mo's (Agency) 0.8% Gate 14.2% 0.3% 0.0% "Not Rated eMo's (Private) 4.9% 0.0% Investment Grade 94.3% * Other includes regulatory stock Investment Grade = A-rated securities Other Investment Grade = B-rated securities ‘Another
Slide 31: Credit
Slide 32: Centralized credit organization
[Centralized (-] Market level First Financial Bancorp First Financial Bank Another step on the path to success
Slide 33: Credit quality metrics
= Highlights the success of the restructured credit organization = Credit quality metrics are within estimated range and remain stable = Active oversight in conjunction with established processes ensure quality of new loans and management of existing problem credits 2003 Net Charge-Off Ratio 069% No
Slide 34: Building on Results
Building on Results
Slide 35: Credit, capital and commercial banking results
I bancorp = Credit quality metrics stable and within forecasted ranges = Capital exceeds regulatory “well-capitalized” levels = Commercial Banking — Profitable growth with disciplined underwriting and pricing — Commercial loan growth ~ end of period loans up 14% to $1.8 billion on June 30, 2008 from
Slide 36: Noninterest income and expense
I bancorp = Noninterest income — Diversified sources with improving trends Improved wealth management services resulting in steady growth = On-going management of noninterest expenses should result in flat or relatively low year-over-year and linked quarter growth — YTD-2008 noninterest expense decl
Slide 37: Keys to Success and Challenges
I bancorp. = Keys to Success — Continued success in commercial lending — Deposit growth Continued management of credit quality — Continued focus on efficiency and expense management — Faster revenue growth = Challenges — Managing the current interest rate environment — Margin ~ asset sensitive balan
Slide 38: Outlook for 2008
| bancorp. = Low single-digit growth in loans and deposits = Full-year net interest margin between 3.67% and 3.75% on a non-tax- equivalent basis — 3Q-08 is expected to be a low point as liabilities continue to reprice slower than assets — Delayed liability pricing should result in a positive impact
Slide 39: Corporate Overview (06/30/08)
| bancorp Corporate Overview (06/30/08) Total Assets: $3.5 billion = Successfully executing strategic plan Total Loans: $2.7 bil Total Deposits $2.8 billion = Stable and strong credit quality Tee a ocean Coe — Nonperforming loans / total loans: 0.57%* —_| 1°58 FTEs m Trading Statistics = Capital man
Slide 40: Leadership
Leadership
Slide 41: Claude E. Davis
Claude E. Davis President & Chief Executive Officer Claude E. Davis joined the company as President, Chief Executive Officer, and a member of the Board of Directors in October 2004. Mr. Davis also serves as Chairman on the Board of Directors of First Financial Bank. Prior to joining the company, he
Slide 42: Gregory A. Gehlmann
Gregory A Gehimann Senior Vice President, General Counsel Gregory A. Gehimann joined the company in June 2005 as Senior Vice President and General Counsel. Mr. Gehlmann also served as Chief Risk Officer for the company from July 2006 to July 2008, Prior to joining the company, he practiced law for 1
Slide 43: John Sabbath
John Sabbath Senior Vice President & Chief Risk Officer John Sabath joined the company in 2005 as Regulatory Risk Manager and was later promoted to Senior Risk Officer and First Vice President. In August 2008, Mr. Sabbath was appointed Senior Vice President and Chief Risk Officer with responsibility
Slide 44: About First Financial Bancorp
‘About First Financial Bancorp First Financial Bancorp is a Cincinnati, Ohio based bank holding company with $3.5 billion in assets. Its banking subsidiary, First Financial Bank, N.A., founded in 1863, provides retail and commercial banking products and services, and investment and insurance product
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