First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q1 2017 Earnings Presentation
31 slides from First Financial Bancorp's earnings presentation, May 9, 2017
Slide 1: Investor Presentation First Quarter 2017
Investor Presentation First Quarter 2017 Exhibit 99.1
Slide 2: Forward-looking statements
2 This investor presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not based on historical or current facts, but rather on our current beliefs, expectations, assumptions and projections about our busines
Slide 3: Presentation Contents
3 About First Financial Bancorp Strategic Direction Recent Financial Results Presentation Contents
Slide 4: Company Overview
4 Company Overview NASDAQ: FFBC Overview Founded: 1863 Headquarters: Cincinnati, Ohio Banking Centers: 103 Assets: $8.5 billion Loans: $5.8 billion Deposits: $6.5 billion Wealth Mgmt: $2.5 billion AUM Lines of Business Commercial / Private Banking C&I, O-CRE, ABL, Equipment Finance, Treasury, Wealth
Slide 5: Our Markets
Central OH Loans $1.0 billion Loan Growth (Y-o-Y) 18.3% Deposits $0.4 billion Deposit Market Share #16 (0.7 %) Banking Centers 6 Fortune 500 Companies 4 5 Our Markets Indianapolis Loans $0.4 billion Loan Growth (Y-o-Y) (0.8%) Deposits $0.6 billion Deposit Market Share #14 (1.2%) Banking Centers 8 Fo
Slide 6: Proven Acquirer Through the Cycle
Proven Acquirer Two FDIC-assisted acquisitions totaling $2.5 billion in assets & generating a $343 million pre- tax bargain purchase gain (2009) Two branch acquisitions of 38 offices in Indiana & Ohio (2011) Three banks in Columbus, Ohio totaling $727 million in assets (2014) Oak Street Funding, spe
Slide 7: Investments in our Business
Product expansions (since 2009) Specialty lending (~ $1.2 billion across Franchise, Oak Street, ABL, and Equipment Finance) Mobile banking & other technology enhancements for clients Re-entry into mortgage business (2010) 2016 originations of $318 million Wealth infrastructure improvements Investmen
Slide 8: Invest with First Financial
Proven & sustainable business model Well managed through the cycle Conservative operating philosophy Consistent profitability – 106 consecutive quarters Robust capital management Prudent steward of shareholders’ capital Strong asset quality Well defined M&A strategy Selective markets, products & ass
Slide 9: Total Shareholder Return
9 1 – includes dividend reinvestment 2 – peer group includes KBW regional bank index peers Invest with First Financial Total Shareholder Return1,2 266% 99% 122% 59% -3% 90% 117% 105% 40% -4% 149% 170% 129% 54% -1% -30% 20% 70% 120% 170% 220% 270% 320% 10 Year 7 Year 5 Year 3 Year 2017 YTD FFBC KBW P
Slide 10: Strategic Direction
10 About First Financial Bancorp Strategic Direction Recent Financial Results
Slide 11: Strategic Overview
11 Operational Excellence • Focus on cost, efficiency & volume Client Intimacy • Strong client focus • Relationship driven Product Leadership • Develop new products, new markets & new techniques What does First Financial stand for? Strategic Overview
Slide 12: Our Strategy: Premier Business Bank
Our strategy is to be the Premier Business Bank in the markets we serve “Bank the business, bank the owner & bank the employees.” Rationale: Our value proposition – relationship banking & sophisticated solutions – resonates with and is desired by small / mid-size businesses Alignment with our compet
Slide 13: Connecting Strategy to Execution
13 Connecting Strategy to Execution 13
Slide 14: Strategic Priorities
14 Strategic Priorities Deliver top quartile shareholder returns Deploy capital in an opportunistic & risk-appropriate manner Invest in innovative solutions that enable our clients to bank with us on their terms Promote leadership & development within our communities Proactively develop leadership t
Slide 15: Recent Financial Results
15 About First Financial Bancorp Strategic Direction Recent Financial Results
Slide 16: 1Q 2017 Highlights
16 1Q 2017 Highlights – 106th Consecutive Quarter of Profitability Total assets increased $93.2 million, to $8.5 billion, or 4.5% annualized, compared to the linked quarter. EOP loans declined $3.4 million, or 0.2% annualized, compared to the linked quarter. EOP deposits increased $4.1 million, or 0
Slide 17: Strategy & Outlook
17 Strategy & Outlook Focus remains on organic growth & executing our core strategy: 1. Growing loans at risk-appropriate returns Strong organic growth opportunities resulting from the mix of markets, products & businesses built over the last five years Full year 2017 loan growth expected to be in t
Slide 18: Profitability
18 Profitability Net Income & EPS Return on Average Assets Return on Tangible Common Equity All dollars shown in millions, except per share data $661 $653 $645 $626 $610 14.98% 14.19% 14.08% 14.49% 13.06% 1Q174Q163Q162Q161Q16 Average Tangible Equity ROATCE $8,409 $8,360 $8,322 $8,204 $8,119 1.18% 1.
Slide 19: Net Interest Income / Net Interest Margin
19 Net Interest Income / Net Interest Margin 1 Gross loans include loans held for sale & FDIC indemnification asset All dollars shown in millions Net Interest Income Average Loans Average Securities Average Deposits 23% 24% 23% 23% 23% 23% 23% 23% 24% 23% 35% 32% 33% 32% 32% 19% 21% 21% 21% 23% $6,4
Slide 20: Interest Rate Sensitivity
20 Interest Rate Sensitivity Loan Portfolio – Floating Loan Growth (1) Sensitivity Trend (Up100, Up200) (3) 24% Y-o-Y growth in floating rate lending (1) 18% Y-o-Y growth in client derivatives (2) % of loans repricing: <=3 months 60% Securities portfolio duration – 3.2 years +100 scenario 3.9 years
Slide 21: Noninterest Income
21 Noninterest Income Noninterest Income 1Q17 Highlights * Includes net gain on sale of investment securities & other noninterest income. All dollars shown in millions Total noninterest income increased $0.4 million, or 2.5% from the linked quarter; $1.9 million, or 11.9%, from prior year Deposit se
Slide 22: Noninterest Expense
22 Noninterest Expense Noninterest Expense 1Q17 Highlights Efficiency Ratio All dollars shown in millions Total noninterest expense increased $0.9 million, or 1.8%, from the linked quarter; $0.3 million from prior year Salary & benefits expense increased $0.6 million, or 2.0%, from the linked quarte
Slide 23: Loan Portfolio
23 Loan Portfolio Loan Product Mix (EOP) Net Loan Change (Linked Quarter) * Includes residential mortgage, home equity, installment, & credit card loans. All dollars shown in millions Highlights -$6.5 -$18.7 -$6.3 -$10.6 $53.2 -$14.4 Commercial & Leasing Owner Occupied CRE Owner Occupied Constructio
Slide 24: Loan Portfolio By Geography
24 Loan Portfolio Loan Portfolio By Geography 1 Average Loan Size & Rate 2 Nationwide Lending Platforms 1 Includes loans held for sale. Excludes purchase accounting loan marks. 2 Average loan balances in $000s, rate represents weighted average coupon & does not include loan fees 3 Includes Oak Stree
Slide 25: C&I Loans by Industry, CRE Loans by Collateral
25 Loan Portfolio C&I Loans By Industry 1 CRE Loans By Collateral 2 1 Industry types included in Other representing greater than 1% of total C&I loans include Agriculture, Public Administration, Other Services, Retail Trade, Waste Management, Educational Services, and Arts. 2 Collateral types includ
Slide 26: Investment Portfolio
26 Investment Portfolio Total EOP investments of $2.0 billion Investment Portfolio / Total Assets = 23.5% Effective yield earned during first quarter = 2.76% Portfolio duration = 3.2 years Portfolio Composition Portfolio Quality Agency CMOs 18% Commercial MBS 21% Asset-backed securities 17% Agency P
Slide 27: Asset Quality
27 Asset Quality Nonperforming Assets / Total Assets Classified Assets / Total Assets Allowance / Total Loans Net Charge Offs & Provision Expense All dollars shown in millions $68.4 $54.3 $58.0 $59.6 $64.1 0.80% 0.64% 0.69% 0.72% 0.78% 1Q174Q163Q162Q161Q16 NPAs NPAs / Total Assets $56.3 $58.0 $57.6
Slide 28: Capital
28 Capital Tier 1 Common Equity Tangible Book Value Total Capital Tangible Common Equity All capital numbers are considered preliminary All dollars shown in millions $669.7 $654.6 $650.2 $635.5 $615.1 $10.78 $10.56 $10.50 $10.26 $9.94 1Q174Q163Q162Q161Q16 Tangible Book Value Tangible Book Value per
Slide 29: Appendix: Non-GAAP to GAAP Reconciliation
29 Appendix: Non-GAAP to GAAP Reconciliation Net interest income and net interest margin - fully tax equivalent Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, 2017 2016 2016 2016 2016 Net interest income 68,932$ 70,166$ 68,818$ 67,132$ 66,555$ Tax equivalent adjustment 1,225 1,077 1,028 1,058 1,052 Ne
Slide 30: Appendix: Non-GAAP to GAAP Reconciliation
30 Appendix: Non-GAAP to GAAP Reconciliation Additional non-GAAP ratios Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31, (Dollars in thousands, except per share data) 2017 2016 2016 2016 2016 Net income (a) $24,414 $23,294 $22,850 $22,568 $19,814 Average total shareholders' equity 871,215 863,509 856,29
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