Slide 1: Investor Presentation Second Quarter 2011
EXHIBIT 99.1 fiIRST first financial bancorp Investor Presentation Second Quarter 2011
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Slide 3: Business & Strategy Review
fiRST first financial bancorp Business & Strategy Review
Slide 4: Strong operating fundamentals and prudent management
= Strong operating fundamentals and prudent management have resulted in solid performance and profitability throughout the recessionary period — Second quarter 2011 ROAA of 1.03% and ROAE of 9.05% — 83 consecutive quarters of profitability * Capital levels remain among industry leaders and provide a
Slide 5: Consistently solid profitability versus peers
= Consistently solid profitability throughout the cycle, especially over the last twelve months = _LTM ROAA of 1.00% compared to peer median of 0.76% — _LTM ROAE of 9.06% compared to peer median of 6.70% —_LTM net interest margin of 4.64% compared to peer median of 3.78% = Capital levels extremely r
Slide 6: Opportunities to Build Shareholder Value
fiRST first ancial bancorp Opportunities to Build Shareholder Value Opportunities and Risks Risks to be Managed Efficient and prudent use of capital in future periods. = Support organic growth in core strategic markets — Dividend policy — Acquisitions that meet internal criteria — Share repurchase p
Slide 7: Introducing a 100% dividend payout ratio
Introducing a 100% dividend payout ratio comprised of two components: = Recurring dividend based on stated payout of between 40% - 60% of quarterly earnings: currently $0.12 per share — Vatieble dividend besed on the remainder of quertarly eamings; $0.15 per share based on second quarter 2011 earnin
Slide 8: Focused Business Strategy
fiRST first financial bancorp Client intimate strategy focused on long-term, profitable relationships with clients Strong sales culture that is aggressive in attracting business with the appropriate risk and return Lines of business. = Commercial = Retail — Wealth Management — Franchise Finance Targ
Slide 9: Low Risk Balance Sheet
fiRST Low Risk Balance Sheet first financial bancorp Suess Case Total Assets by Risk Weighting % seein seen ema iiamcch Aah, oes ee eee a ‘aia (Dotars in miions) onperering Assets = $20 millon ian it, ao ‘nai omen Ey age ea Sent Sk Sa see + ncaa Yip os 1A Pett 868 ee 1 ogc ses To ase 90% Pw nsa= 876
Slide 10: Selective Acquisitions
fiRST first financial bancorp ‘Supplements organic growth strategy through expansion in strategic markets Transactions met all intemal criteria for acq Insmarket locations improves operating leverage Loss sharing arrangements provide significant protection ‘on acquired loans Developed scalable cover
Slide 11: Strategic Rationale
Strategic Rationale Low Operational Risk Financially Compelling Significantly enhances presence in key market of Dayton, OH Provides immediate scale and proftabilty compared to building similar branch network ‘Composition and cost of funds similar to existing First Financial deposit base ‘Strong gro
Slide 12: Liberty Savings Bank Branch Acquisition
fiRST Liberty Savings Bank Branch Acquisition Branch Map and Deposit Market Share first financial bancorp ‘eouttwmesiern Chie Pro Forma Deposit Market share Scarcity value ~ no true community bank of size headquartered in the Dayton market that provides the immediate scale ofthis transaction ‘+ Acqu
Slide 13: Financial Review
fiRST first financial bancorp Financial Review
Slide 14: Quarterly net income of $16.0 million
= Quarterly net income of $16.0 million, or $0.27 per diluted common share = Continued strong profitability — Return on average assets of 1.03% = Retum on risk-weighted assets of 1.89% — Return on average shareholders’ equity of 9.05% = Net income available to common shareholders for the six months
Slide 15: Pretax, pre-provision income
Pretax, pre provision income ser S| 7216 ‘Acelerated dicount on acquced Toons related to Loan sae Prepayments ‘Total acolrated dacount Ps: ss on covered OREO? Less: gain on sales of non-morgape ‘oars? 29 . ‘ 203 Ps: acceleration of dered sap ‘os associated wth trust proered resempton 0 . . . . Pls:
Slide 16: Capital growth and strength
* Primary component of capital is common equity; continues to grow as a result of earnings power = Tangible book value per share has increased over 75% since January 1, 2009. "Strong capitalization levels remain among industry leaders and provides ability to take advantage of strategic opportunities
Slide 17: Net Interest Margin
= Net interest margin continues to be positively impacted by the improved deposit mix towards ‘core transaction and savings accounts * Available liquidity was used during the quarter to purchase ‘over $249 million of agency MBS. = Yield on acquired loans was 10.78% during the second ‘quarter 2011, c
Slide 18: Credit quality and FDIC covered loans
= 30.8% of total loans covered under FDIC loss share agreement nm = Total classified assets have declined 8.5% to $184.8 mi joe second quarter 2010 = Economic conditions in the Company's markets are still challenging; real estate loan collateral and OREO valuations will continue to impact restructur
Slide 19: Noninterest Income and Expense
fiRST first financial bancorp Noninterest Income and Expense ‘Components of Noninterest Income ‘Components of Noninterest Expense For the Three Months Ended June 30, 2011 For the Three Months Ended June 30, 2011 (oan mito) (ota in ion) esiatgie esintege [BFDIC Lass Sharing income Acquired ronsrtgic
Slide 20: Deposit and Loan Composition
fiRST first financial bancorp Deposit and Loan Composition Total Deposits = $5.0 billion Gross Loans = $4.0 billion As of June 30, 2011 ‘As of June 30, 2011 (alain ions mstatgic Acquired Non Static * Westean market (acquifed-non-strategc) exit is essentially complete; acquired.non-strategic deposits
Slide 21: Acquisition-Related Items
fiRST first financial bancorp Acquisition-Related Items
Slide 22: Second Quarter 2011 Loan Valuation
fiRST first financial bancorp Second 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. = Asa resul
Slide 23: For the three
For the three months ended sateen 20H [Ey Netincroental mpement rie sje) psd a wn as a ed Bos nl pod purer ccpure net chap. 4409 > Repesents actual nosed net chagects feared loans during the period * Prine andtoae ee scans a Lesson sole -covered Toons saniies sre FICS Shae Rae STS Ra RATE ws Tn FOC
Slide 24: Comparison of Financial Impact
fiRST first financial bancorp Comparison of Financial Impact The tables below presenta comparison ofthe impact on diluted earnings per share under various scenarios Extreme Cases Best Estimate + Hal acquted loans weet prepay immedataly, luted EPS would bene by $1.48 per only ASC Topi 310.20 loane wa
Slide 25: Appendix
fiRST first financial bancorp Appendix
Slide 26: Loan Composition
fiRST first Loan Composition ancial bancorp = _ Strategic portfolio: no significant industry concentrations; geography distributed throughout footprint * In-house lending limit of $15 milion — significantly below legal mit "Uncovered loan balances were essentially unchanged relative to the prior qua
Slide 27: Uncovered Loans — RE Collateral
fiRST Uncovered Loans — RE Collateral first financial bancorp = Construction and acquisition and land development loans represent small portion of overall portfolio = Commercial real estate and constructions loans located primarily in Ohio and Indiana markets ‘$2.8 Billion Red ette-cosncson aa sate
Slide 28: Covered loans
Tol coveeaoans EIT ae oe Tas ae ED ‘Another step on the path to success 8
Slide 29: Strategic and non-strategic definitions
fiRST first financial bancorp * Strategic ~ Elements ofthe business that either ‘existed prior tothe acquisitions or were acquired with the intent to retain and grow. On a reported basis, ‘approximately 68% of total revenue is derived from Sategic businesses. Not including the FDIC loss sharing inco
Slide 30: Funding Structure and Cost of Funds
fiRST first financial bancorp Funding Structure and Cost of Funds Average Interest Bearing Liability Balances -——_End of Period Deposit Composition Total Costot Funds Total Costot oposite = = al ‘Another step on the path to success
Slide 31: Deposit Portfolio
Portfolio (Collars in thousands) toi ‘Transaction and savings accounts $3,514,956 $ (77,249) $ (44,900) $3,302,807 Time deposits 1,590,008 (60,846) (12431) 1,826,731 Brokered deposits 112,286 (1,788) (95,628) 54,872 Total deposits 55217250 S _(20,883) S$ (11,957) Sora = Average strategic transaction
Slide 32: Credit Quality Comparison
fiRST first financial bancorp Credit Quality Comparison * ‘Another step on the path to success 3
Slide 33: Investment portfolio
04% ssa 00% 281% TaTzT 19%, 2a Tore? 10541868 Municgat 15205 13% 2 seas 172 ue ontee! 22105 cy 350 toy 103.at 40 TT ai ase Ta Totalinvesentportoio “ETSROT DOO ees SO ‘Net Uneaized Gaines) 19470 Aggregate Gans 20298 ‘aggregate Losses @25) Net Unrealized Gain(L.oss) % of Book Value 150% * omer nie $71
Slide 34: Sector Allocation and Credit Quality
As of June 30, 2011 Sector Allocation Credit Quality 05 soe) oe beset Gate Ob tent ‘cose o Investment Grade =A rated secures ‘ote Investment Grade = 8 rated secon. * otner consis pimanly of regulatory sock Not Ratedineudes an rimatral amet of _sbeunbes wih anonsavesinent grade atg ey ‘nother step on
Slide 35: 3%
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Slide 36: Noninterest Income Noninterest Expense
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Slide 37: Leadership
fiRST first financial bancorp Leadership
Slide 38: Claude E. Davis
Claude E. Davis President & Chief Executive Officer [Me Daws joned Fist Financial in 2004 as President, Chief Execute Officer and a member ofthe Board of Directors. Mr. Davis aso Serves as Chaiman of the Board of Directors of Fist Fnac Bank. Post jonng the company, he served as Senor Vice President
Slide 39: Executive Management (continued)
fiRST first financial bancorp Executive Management (continued) Michael Cassani Executive Viee President, First Financial Wealth Management tie Casean joined First Financial in 2007 as Senor Vice Present and Chief Adminstrave Officer fo oversee the company’s wealth ‘management group. Prior ooining th
Slide 40: Executive Management (continued)
fiRST first financial bancorp Executive Management (continued) sl Wyman Executive Vice President, Co-Chief Retall Banking Officer {is Viyman joined First Financial n'2008 as Viee President and Sales Dectr. In her current poston, Ms, Wyman has responsibilty for leading the retal sales process, growin
Slide 41: John Sabath
John Sabath ‘Senior Vice President, Chet Risk Officer ‘Me: Sabath joined First Financial in 2005 as Regulatory Risk Manager. Mi. Sabath was then promoted to Senior Risk Officer and Fist ‘ice President and assumed his cuent positon in 2008. He is responsible for management ofthe Companys risk managem
Slide 42: Another step on the path to success
fiRST first financial bancorp ‘Another step on the path to success