First Financial Corporation · NASDAQ:THFF
First Financial — Investor Presentation (September 2024)
25 slides from First Financial's investor presentation, Sep 3, 2024
Slide 1: First Financial Corporation
First Financial Corporation
Slide 2: Forward-looking Information
Forward-looking Information This presentation contains future oral and written statements of the Company and its management, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, ob
Slide 3: Presenting management team
Norman D. Lowery President & Chief Executive Officer Rodger A. McHargue Chief Financial Officer, SVP Stephen P. Panagouleas Chief Credit Officer, SVP 3
Slide 4: First Financial Corporation overview and banking center footprint
Illinois 26 Banking Centers Indiana 22 Banking Centers 4 Loan Offices Kentucky 16 Banking Centers Tennessee 16 Banking Centers 3 Loan Offices First Financial Corporation Indiana’s first multi-bank holding company Established 1984 90 Locations 83 full-service banking centers 7 loan production offices
Slide 5: Vision, Mission and Values
Best Bank Tribune-Star Readers’ Choice Top 50 Best U.S. Bank Bank Director Magazine Our Vision To enhance our clients’ abilities to spend, save, borrow and invest. Our Mission To deliver financial solutions that are simple, fast and easy. Our Values We build strong relationships and treat each other
Slide 6: Strong Capital
TBV $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2Q24 10 YR CAGR 4.37% Strong Capital Key Capital Ratios and Per Share Data As of June 30, 2024 0.00% 3.50% 7.00% 10.50% 14.00% 17.50% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2
Slide 7: History of Earnings and Dividend Growth
2.37 2.55 2.35 3.12 2.38 3.80 3.80 3.93 4.02 5.82 5.08 1.89 '- 1.50 3.00 4.50 6.00 7.50 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Earnings and Dividends Per Share EPS Dividends Paid 10 YR CAGR 2013 - 2023 EPS 11.43% Dividends 3.33% History of Earnings and Dividend Growth 7
Slide 8: History of Shares Repurchases
Announced Repurchase Amount Shares Amount Completed April 21, 2022 10% 1,243,531 In Progress ** July 21, 2021 5% 652,411 $28,335,713 3/4/22 October 29, 2020 5% 685,726 $29,300,476 6/25/21 February 3, 2016 5% 637,500 $21,677,750 11/30/20 August 25, 2014 5% 667,700 $21,627,262 8/19/15 **As of 06/30/20
Slide 9: Strong Asset Quality
FFIEC BHC UBPR Data • Centralized committee structure • We are an in-market lender to clients • Disciplined underwriting Net Charge-offs 0.05% 0.07% 0.06% 0.05% 0.15% 0.00% 0.04% 0.08% 0.11% 0.15% '- 800 1,600 2,400 3,200 4,000 4,800 5,600 2Q23 3Q23 4Q23 1Q24 2Q24 Dollar ($000) % Total Loans 1.29% 1
Slide 10: Better than Peer Performance
FFIEC BHC UBPR Data Return on Assets 1.61 1.22 1.32 1.12 1.00 0.88 0.93 0.91 0.84 0.91 0.93 0.9 0.9 0.98 0.94 0.79 0.71 0.72 '- 2016 2017 2018 2019 2020 2021 2022 2023 2Q24 FFC Peer Non-interest Income % Avg Assets FFIEC BHC UBPR Data 1.30 0.98 1.56 1.42 1.25 1.10 1.41 1.22 0.93 0.92 0.95 1.22 1.19
Slide 11: Loan Growth Driving Growth in Income
Net Interest Income Loan Growth Driving Growth in Income 107,857 116,579 131,652 146,346 143,401 165,042 167,262 78,214 4.11 4.32 4.25 4.05 3.2 3.55 3.78 3.55 2.00 3.00 4.00 5.00 6.00 '- 42,500 85,000 127,500 170,000 212,500 2017 2018 2019 2020 2021 2022 2023 2Q24 12.37% CAGR NII NIM $’s in (000’s)
Slide 12: Diversified Loan Portfolio
Balance ($000) Commercial Loans By State Total $3,703,385 Diversified Loan Portfolio As of 7/31/24 12 Loan Portfolio Commercial 70.05% Consumer 21.89% Residential 8.06% Commercial $2,594,151 Consumer $810,741 Residential $298,493 IN 41.55% IL 9.83% KY 11.36% TN 27.28% GA 1.88% Other 8.10%
Slide 13: Consumer Loan Portfolio
Total Loans $810,741,317 97.14% Secured Consumer Loans 66.9% ≥ 700 FICO 19.0% ≥ 650 to 699 10.2% ≥ 600 to 650 3.9% < 600 (Includes No Score) 68.85% Indirect Auto ($558,197,844) 13.1% New ($73,181,673) 86.9% Used ($485,016,171) Asset Quality 30 – 89 day YTD Average Past Due 1.395% Consumer Loan Portf
Slide 14: Mortgage Loan Portfolio
$165,765,278 $95,019,127 14 Mortgage Loan Portfolio As of 7/31/24 Total Loans $264,393,582 58% YTD Production Sold • Average New Production LTV 77.2% • Average New Production FICO 728 • Primarily in-market lender Portfolio • Underwritten to FHLMC Guidelines • Average credit score 738 • Average DTI 3
Slide 15: Commercial Real Estate Loan Mix (6/30/24)
Residential/Multi- Family 40.93% Commercial Income Property 21.36% NOO Retail/Restaurants 11.42% Hotels and Motels 5.75% Owner Occupied CRE 8.42% Residential & Non-Residential Property Managers 3.51% Lessors of Other Real Estate Property 6.62% Mini-warehouses/Self Storage 1.27% Single Family Housing
Slide 16: Commercial Real Estate Loan Mix (7/31/24)
Residential/Multi- Family 41.86% Commercial Income Property 12.31% NOO Retail/Restaurants 12.86% Hotels and Motels 7.45% Owner Occupied CRE 12.03% Residential & Non-Residential Property Managers 3.20% Lessors of Other Real Estate Property 6.25% Mini-warehouses/Self Storage 1.31% Single Family Housin
Slide 17: Commercial & Industrial Loan Mix (6/30/24)
Agriculture 26.428% Construction 6.886% Health Services 6.950% Banking & Financial Services 4.447% Floor Plan & Auto Industry 4.215% Retail Eating Establishments 1.709% Other Retail+Convenience 4.732% Transportation & Utilities 3.993% Manufacturing 3.178% Personal Services 9.788% Government Entities
Slide 18: Commercial & Industrial Loan Mix (7/31/24)
Agriculture 22.037% Construction 9.760% Health Services 6.571% Banking & Financial Services 3.738% Floor Plan & Auto Industry 3.603% Retail Eating Establishments 2.691% Other Retail+Convenience 4.838% Transportation & Utilities 4.571% Manufacturing 4.190% Personal Services 12.675% Government Entitie
Slide 19: Commercial Production Pipeline
Commercial Production Pipeline As of 07/31/24 19 Region Pipeline New Money Central $145,376,988 $73,430,861 West $162,734,845 $108,077,817 Southern $144,357,734 $134,186,764 Mid-South $288,231,225 $156,898,363 Indy / Ft. Wayne LPO $233,252,884 $190,995,978 East TN $33,173,991 $32,843,963 Total $1,00
Slide 20: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit Mix 0.63% 0.38% 0.25%0.19%0.16%0.17%0.25% 0.37% 0.56% 0.36% 0.20% 0.38% 1.26% 1.83% 0.00% 0.45% 0.90% 1.35% 1.80% 2.25% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Cost of Deposits 0.16 0.23 0.32 0.50 0.32 0.18 0.36 1.23 1.69 0.45 0
Slide 21: Disciplined Expense Management
$90,308 $88,747 $91,289 $104,348 $112,758$117,406 $126,023$130,176 $66,072 0 32500 65000 97500 130000 162500 2016 2017 2018 2019 2020 2021 2022 2023 2Q24 59.4 61.62 58.43 61.23 59.87 63.33 59.51 65.26 68.42 62.21 61.22 61.65 61.22 60.88 59.84 62.03 45.0 51.0 57.0 63.0 69.0 75.0 2016 2017 2018 2019 2
Slide 22: Trust and Asset Management
$1.9 Billion Trust Assets Under Management Trust & Asset Management 2022 2023 Revenue ($000) 5,155 5,155 Income before Tax 1,586 1,258 Trust and Asset Management 22 Trust Services include: • Professional Farm Management • Trust Administration • Estate Administration • Retirement Services • Corporate
Slide 23: Key Investment Points
Well-positioned for sustainable and profitable growth • Diversified business model with strong risk management • High-caliber team members focused on customer service and technology optimization • Expanding presence in larger growth markets • Commercial banking focus with quality core deposits • Dem
Slide 24: 4-Year Financial Highlights
2020 2021 2022 2023 2Q24 Net Interest Income 146,346 143,401 165,042 167,262 78,213 Provision 10,528 2,466 <2,025> 7,295 4,766 Non-interest Income 42,476 42,084 46,716 42,702 19,336 Non-interest Expense 112,758 117,406 126,023 130,176 66,072 Net Income 53,844 52,987 71,109 60,672 22,293 Earnings Per
Slide 25: Thank You!
Norman D. Lowery President and CEO lowerynd@first-online.com 812.238.6185 Rodger A. McHargue Chief Financial Officer, SVP rmchargue@first-online.com 812.238.6334 Stephen P. Panagouleas Chief Credit Officer, SVP spanagouleas@first-online.com 812.238.6431 Thank You! : THFF
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