First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q1 2011 Earnings Presentation
21 slides from First Financial Bancorp's earnings presentation, Apr 28, 2011
Slide 1: First Quarter 2011 Earnings Release Supplemental Information
EXHIBIT 99.2 First Financial Bancorp First Quarter 2011 Earnings Release Supplemental Information Another step on the path to success
Slide 2: Forward-Looking Statements Disclosure
Forward -Looking Statements Disclosure 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 (the ‘‘Act’’). In addition, certain statements in future fili
Slide 3: Pre-Tax, Pre-Provision Income
Pre -Tax, Pre -Provision Income For the three months ended March 31, December 31, September 30, June 30, March 31, 2011 2010 2010 2010 2010 Pre-tax, pre-provision income 1 $ 29,768 $ 34,844 $ 33,631 $ 37,216 $ 31,126 Accelerated discount on acquired loans related to: Loan sales 3,085 - 362 - 1,927 P
Slide 4: Low Risk Balance Sheet Stress Case
Low Risk Balance Sheet Stress Case Total Assets by Risk Weighting % Illustrates the strength of our balance sheet assuming a full charge -off of all As of March 31, 2011 acquired loans under FDIC loss share agreements and a full charge -off of all uncovered non-performing loans. (Dollars in millions
Slide 5: Revenue by Source
Revenue by Source Strategic – Elements of the business that either existed prior to the acquisitions or were acquired with Total Revenue: $111.0 million the intent to retain and grow. On a reported basis, For the Three Months Ended March 31, 2011 approximately 66% of total revenue is derived from (D
Slide 6: Noninterest Income and Expense
Noninterest Income and Expense Components of Noninterest Income Components of Noninterest Expense For the Three Months Ended March 31, 2011 For the Three Months Ended March 31, 2011 (Dollars in millions) (Dollars in millions) -$0.4 $0.8 $7.4 - 1% 1% $5.8 13% 13% $3.9 $14.9 7% 34% $23.4 $45.7 54% 79%
Slide 7: Deposit and Loan Composition
Deposit and Loan Composition Total Deposits = $5.2 billion Gross Loans = $4.1 billion As of March 31, 2011 As of March 31, 2011 (Dollars in millions) (Dollars in millions) $261 5% $698 17% $3,419 $4,956 83% 95% Strategic Acquired -Non-Strategic Western market and Michigan and Louisville, KY branch e
Slide 8: First Quarter 2011 Loan Valuation
First Quarter 2011 Loan Valuation The majority of the loans acquired as part of the FDIC-assisted transactions are accounted for under ASC Topic 310-30 which requires the Company to periodically update its forecast of expected cash flows from these loans. As a result of valuation procedures performe
Slide 9: Components of Credit Losses
Components of Credit Losses Covered Assets For the three months ended March 31, Dollars in thousands 2011 Description Net impairment for period $15,062 Reduction in expected cash flows related to certain loan pools net of prior period impairment recapture Net charge -offs 10,954 Represents actual, u
Slide 10: Supplemental Tables from First Quarter 2011 Earnings Release
Tables from First Quarter 2011 Earnings Release Another step on the path to success
Slide 11: Table I: Noninterest Income
Table I Noninterest Income Table I For the Three Months Ended March 31, December 31, March 31, (Dollars in thousands) 2011 2010 2010 Total noninterest income $ 43,658 $ 34,534 $ 26,935 Significant components of noninterest income Items likely to recur: Accelerated discount on covered loans 1, 2 5,78
Slide 12: Table II: Noninterest Expense
Table II Noninterest Expense Table II For the Three Months Ended March 31, December 31, March 31, (Dollars in thousands) 2011 2010 2010 Total noninterest expense $ 57,790 $ 56,290 $ 60,261 Significant components of noninterest expense Items likely to recur: Acquired -non-strategic operating expenses
Slide 13: Table III: Credit Quality – Excluding Covered Loans
Table III Credit Quality – Excluding Covered Loans Table III As of or for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands) 2011 2010 2010 2010 2010 Total nonaccrual loans $ 62,048 $ 62,302 $ 66,157 $ 66,671 $ 66,869 Restructured loans 18,532 17,61
Slide 14: Table IV: Loan Portfolio – Excluding Covered Loans
Table IV Loan Portfolio – Excluding Covered Loans Table IV As of March 31, 2011 December 31, 2010 March 31, 2010 Percent Percent Percent (Dollars in thousands) Balance of Total Balance of Total Balance of Total Commercial $ 794,821 28.6% $ 800,253 28.4% $ 763,084 27.1% Real estate - construction 145
Slide 15: Table V: Investment Portfolio
Table V Investment Portfolio Table V As of March 31, 2011 Book Percent of Book Cost Market Gain/ (Dollars in thousands) Value Total Yield Basis Value (Loss) U.S. Treasury notes $ 13,650 1.2% 1.99 99.64 101.32 $ 230 Agencies 105,386 9.4% 2.76 100.00 100.34 358 CMOs (agency) 453,014 40.4% 1.78 100.72
Slide 16: Table VI: Deposit Activity
Table VI Deposit Activity Table VI Deposit Activity - First Quarter 2011 Balance as of Acquired - Balance as of December 31, Strategic Non-Strategic March 31, (Dollars in thousands) 2010 Portfolio Portfolio 2011 Transaction and savings accounts $ 3,351,406 249,434 (85,884) $ 3,514,956 Time deposits
Slide 17: Table VII: Capital Ratios
Table VII Capital Ratios Table VII As of March 31, December 31, March 31, "Well-Capitalized" 2011 2010 2010 Minimum Leverage Ratio 11.08% 10.89% 9.76% 5.00% Tier 1 Capital Ratio 20.49% 18.45% 17.37% 6.00% Total Risk-Based Capital Ratio 21.77% 19.72% 18.64% 10.00% Ending tangible shareholders' equity
Slide 18: Table VIII: Significant Acquisition Related Items
Table VIII Significant Acquisition Related Items Table VIII For the Three Months Ended March 31, December 31, March 31, (Dollars in thousands) 2011 2010 2010 Income effect: Accelerated discount on covered loans 1, 2 $ 5,783 $ 6,113 $ 6,098 Acquired -non-strategic net interest income 8,902 9,937 10,8
Slide 19: Table IX: Estimated Yields and Average Balances
Table IX Estimated Yields and Average Balances Table IX For the Three Months Ended March 31, 2011 Average Balance Yield Legacy and originated loan portfolio 1 $ 2,961,008 5.38% Acquired loan portfolio accounted for under ASC Topic 310-30 2 1,280,639 10.97% FDIC indemnification asset 2 208,448 -2.28%
Slide 20: Table X: Covered Loan Portfolio
Table X Covered Loan Portfolio Table X Covered Loan Activity - First Quarter 2011 Reduction in Recorded Investment Due to: December 31, Prepayments / Contractual Net Loans With March 31, (Dollars in thousands) 2010 Sales Renewals Activity 1 Charge -Offs 2 Coverage Removed 2011 Commercial $ 334,039 $
Slide 21: Another step on the path to success Another step on the path to success
Another step on the path to success Another step on the path to success
First Financial Bancorp — Q1 2011 Earnings Presentation on 6ix