First Financial Corporation · NASDAQ:THFF
First Financial — Investor Presentation (January 2025)
26 slides from First Financial's investor presentation, Jan 28, 2025
Slide 1: First Financial Corporation (THFF)
: THFF
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
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 at a glance
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 be the foundation of community prosperity and trust for generations to come. Our Mission Empowering you with secure and innovative financial solutions focusing on quality of life. Our Values Start with
Slide 6: Strong Capital
TBV $27.11 $28.84 $30.94 $30.83 $33.16 $34.08 $37.57 $38.67 $31.66 $36.80 $35.73 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Strong Capital Key Capital Ratios and Per Share Data As of December 31, 2024 11.86% 12.51% 12.80% 12.74% 13.69% 11.91% 11.4
Slide 7: History of Earnings and Dividend Growth
$2.55 $2.35 $3.12 $2.38 $3.80 $3.80 $3.93 $4.02 $5.82 $5.08 $4.00 $0.97 $0.98 $0.99 $2.50 $1.02 $1.02 $1.04 $1.06 $1.17 $1.28 $1.80 $0.00 $1.50 $3.00 $4.50 $6.00 $7.50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Earnings and Dividends Per Share EPS Dividends Paid History of Earnings and D
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 12/31/20
Slide 9: 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 0.85 0.91 0.93 0.90 0.90 0.98 0.94 0.79 0.71 0.73 '- 2016 2017 2018 2019 2020 2021 2022 2023 3Q24 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 1.1
Slide 10: 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 $174,986 4.11% 4.32% 4.25% 4.05% 3.20% 3.55% 3.78% 3.71% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $42,500 $85,000 $127,500 $170,000 $212,500 2017 2018 2019 2020 2021 2022 2023 2024 NII NIM
Slide 11: Diversified Loan Portfolio
Balance ($000) Commercial Loans By State Total $3,836,717 Diversified Loan Portfolio As of 12/31/24 Loan Portfolio Commercial 71.17% Consumer 21.15% Residential 7.68% Commercial $2,730,596 Consumer $811,622 Residential $294,499 IN 41.74% IL 10.05% KY 9.80% TN 26.73% GA 1.61% Other 10.07% 11
Slide 12: Strong Asset Quality
FFIEC BHC UBPR Data • Centralized committee structure • We are an in-market lender to clients • Disciplined underwriting Net Charge-offs 0.062% 0.049% 0.067% 0.056% 0.046% 0.144% 0.115% 0.033% 0.00% 0.04% 0.08% 0.11% 0.15% '- 800 1,600 2,400 3,200 4,000 4,800 5,600 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24
Slide 13: Strong Growth Strategy Driving Results
Total Portfolio Loan Growth Strong Growth Strategy Driving Results $1,953,988 $2,656,390 $2,610,294 $2,815,895 $3,067,438 $3,167,821 $3,836,717 35.95% -1.74% 7.88% 8.93% 3.27% 21.12% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 1,000,000 2,000,000 3,000,000 4,00
Slide 14: Consumer Loan Portfolio
Total Loans $811,622,382 97.14% Secured Consumer Loans 65.86% ≥ 700 FICO 20.48% ≥ 650 to 699 10.79% ≥ 600 to 650 2.87% < 600 (<1% No Score) 68.85% Indirect Auto ($558,708,648) 12.69% New ($70,900,127) 86.97% Used ($487,808,521) Asset Quality 30 – 89 day YTD Average Past Due 1.42% Consumer Loan Portf
Slide 15: Mortgage Loan Portfolio
$165,765,278 $95,019,127 Mortgage Loan Portfolio As of 12/31/24 Total Loans $294,499,334 53.17% YTD Production is Sold • $46.9 Million YTD New Production Sold • Average New Production LTV 79.22% • Average New Production FICO 738 • Average New Production DTI 35.37% • Average Loan Amount is $176,215 4
Slide 16: Commercial Portfolio Yield Analysis
Commercial Portfolio Yield Analysis Well Positioned For Yield Expansion $222,727 $504,597 $77,410 $49,454 $38,635 $130,940 $224,801 $158,801 $237,784 7.405% 7.135% 4.958% 4.956% 4.852% 4.589% 4.930% 6.258% 6.232% 4.000% 4.250% 4.500% 4.750% 5.000% 5.250% 5.500% 5.750% 6.000% 6.250% 6.500% 6.750% 7.0
Slide 17: Commercial Portfolio Yield Analysis (Cont.)
Commercial Portfolio Yield Analysis (Cont.) Well Positioned For Yield Expansion $132,936 $242,108 $183,247 $203,469 $298,298 5.540% 4.589% 4.930% 6.258% 5.367% 4.000% 4.250% 4.500% 4.750% 5.000% 5.250% 5.500% 5.750% 6.000% 6.250% 6.500% 6.750% 7.000% 7.250% 7.500% 7.750% 8.000% 50,000 75,000 100,000
Slide 18: Commercial Real Estate Loan Mix
Residential/Multi-Family39.01% Commercial Income Property 19.64% NOO Retail/Restaurants 12.01% Hotels and Motels 6.57% Owner Occupied CRE 8.23% Residential & Non-Residential Property Managers 2.72% Lessors of Other Real Estate Property 5.73% Mini-warehouses/Self Storage 1.65% Single Family Housing/S
Slide 19: Commercial & Industrial Loan Mix
Agriculture 23.780% Construction 8.801% Health Services 7.239% Banking & Financial Services 4.074% Floor Plan & Auto Industry 3.477% Retail Eating Establishments 2.722% Real Estate Activites 4.884% Other Retail+Convenience 5.662% Transportation & Utilities 4.826% Manufacturing 4.277% Personal Servic
Slide 20: Commercial Production Pipeline
Commercial Production Pipeline As of 12/31/24 Region Pipeline New Money Central $144,420,000 $63,158,000 West $218,381,000 $112,200,000 Southern $133,506,000 $121,325,000 Mid-South $447,731,000 $344,118,000 Indy / Ft. Wayne LPO $227,654,000 $183,282,000 East TN $13,913,000 $13,403,000 Total $1,185,6
Slide 21: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposit Mix Cost of Deposits 0.16 0.23 0.32 0.50 0.32 0.18 0.36 1.23 1.86 0.45 0.54 0.75 0.95 0.54 0.20 0.44 1.74 2.36 '- 0.40 0.80 1.20 1.60 2.00 2.40 2.80 2016 2017 2018 2019 2020 2021 2022 2023 3Q24 YTD BHC UBPR Interest Expense FFC Peer FFIEC BHC UBPR Data Non-inter
Slide 22: Disciplined Expense Management
$90,308 $88,747 $91,289 $104,348 $112,758$117,406 $126,023$130,176 $144,438 0 32500 65000 97500 130000 162500 2016 2017 2018 2019 2020 2021 2022 2023 2024 59.4 61.62 58.43 61.23 59.87 63.33 59.51 67.1 68.42 62.21 61.22 61.65 61.22 60.88 59.84 66.16 45.0 51.0 57.0 63.0 69.0 75.0 2016 2017 2018 2019 2
Slide 23: Trust & Asset Management
$1.9 Billion Trust Assets Under Management Trust & Asset Management 2023 2024 Revenue ($000) 5,155 5,468 Income before Tax 1,258 1,777 Trust and Asset Management Trust Services include: • Professional Farm Management • Trust Administration • Estate Administration • Retirement Services • Corporate Tr
Slide 24: 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 25: 5-Year Financial Highlights
2020 2021 2022 2023 2024 Net Interest Income 146,346 143,401 165,042 167,262 174,986 Provision 10,528 2,466 <2,025> 7,295 16,166 Non-interest Income 42,476 42,084 46,716 42,702 42,772 Non-interest Expense 112,758 117,406 126,023 130,176 144,438 Net Income 53,844 52,987 71,109 60,672 47,275 Earnings
Slide 26: 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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