First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q3 2010 Earnings Presentation
37 slides from First Financial Bancorp's earnings presentation, Nov 10, 2010
Slide 1: Investor Presentation Third Quarter 2010
EXHIBIT 99-1 fiRST first financial bancorp Investor Presentation Third Quarter 2010
Slide 2: Forward-Looking Statement Disclosure
fiRST first financial bancorp Forward-Looking Statement Disclosure ‘Another step on the path fo succass
Slide 3: Business & Strategy Review
fiRST first financial bancorp Business & Strategy Review
Slide 4: Executed Strategic Plan; Strong Operating Fundamentals
Executed Strategic (Rebuilding and Reorganization) Plan in mid-2000's under which many aspects of business were consolidated, streamlined and/or restructured Strong operating fundamentals have luced positive results throughout the recessionary per = Solid in strategi ti Well-positioned to endure the
Slide 5: Top-quartile performance for all stakeholders
= Top-quartile performance for all stakeholders = Sustained and consistent excellence = Commitment to growth = Effective management of all risks ‘Another step on the path fo success 3
Slide 6: Client Balance Strategy
. Client Bal te” Strategy Focus: build long-term relationships with lenis by Wontijing end meeting tel Rrahcal needs = Four lines of business = Sommerca Wealth Management = Franchise Finance = Target clients ~ Individuals and smal mid-size businesses located within the regional markets we Indiana, K
Slide 7: Selective Acquisitions
fiRsT Selective Acquisitions st financial bancorp ‘Supplements organic growth strategy through expansion in strategic markets ‘Transactions mot all intemal exiteria for acquisitions win enc] In-market locations improves operating leverage (01c) ‘portunities in this ‘Loss sharing arrangements provide
Slide 8: Low Risk Balance Sheet
fiRST Low Risk Balance Sheet ‘Stross Case Total Assets by Risk Weighting % 2010 (ota mins) “Tangbe Common Equty to Tange Asets ‘another step on the path fo success
Slide 9: 37% of total loans covered under FDIC loss share agreement
37% of total loans covered under FDIC loss share agreement Seeing is overall still markets = Stress remains primarily in commercial, construction and CRE portfolios Will maintain a higher provision expense and reserve until the stress of the current economic par y's strategic cycle, including credit
Slide 10: Financial Review
fiRST first financial bancorp Financial Review
Slide 11: Quarterly net income of $15.6 million, or $0.27 per diluted share
Quarterly net income of $15.6 million, or $0.27 per diluted common share Solid quarterly profitability — Retum on average assets of 0.96% — Return on average shareholders’ equity of 9.03% Net intrest it income (FTE) increased to $68.1 million, or 66%, from $41.0 million for the third quarter Net int
Slide 12: Capital: common equity continues to grow
= Primary component of capital is common equity; continues to grow as a result of earnings power ‘Strong capitalization levels remain among industry leaders and provides ability to take advantage of strategic opportunities Long-term targeted dividend payout range is between 40% and 60% of earnings ‘
Slide 13: Net Interest Margin
Net interest Margin = Net interest margin continues to be negatively impacted by net 4.85% —_ 453% 4.50% {decline in both the legacy and same Se ae acquired loan portfolios + Liquidity was 0 prepay $232 milion of FHLB ee, advances and purchase $164 sco” aoe” ta ae aa million of agency MBS = Yield on
Slide 14: Deposit and Loan Composition
fiRST Deposit and Loan Composition first financial bancorp Total Deposits = $6.1 billion Gross Loans = $4.4 billion ‘As of September 30, 2010 [As of September 30, 2010 (Cotas a maton) {ots n maton) astatege aAcquted Non Statepe brokered CDs, ‘Another step on the path fo succass ry
Slide 15: Loan Composition
fiRST Loan Composi geography In-house lending limit of $15 million — significantly below legal limit $223 million ng Total Loan Portfolio - September 30, 2010 ‘Another step on the path fo succass
Slide 16: Construction and land development loans small portion of portfolio
Construction and acquisition and land development loans represent small portion of overall portfolio. * Commercial realestate and constructions loans located primarily in Ohio and Indiana markets “Another step onthe patho success ry
Slide 17: fea! es -consuston ezae :
oa $160 $3850 1.08 : 909 (125) es 238202 am 21003 rn fea! es -consuston ezae : Real eet -coneercal esa : —_ eal ent rsdn 244383 : eae Instron 24 : re (oer ovted ans res : if Tal core ane Toss 2x0 "montana carta orcs as ‘Another step on the path fo success
Slide 18: Funding Structure and Cost of Funds
fiRST first financial bancorp Funding Structure and Cost of Funds Jability Balances End of Period ‘Another step on the path fo succass
Slide 19: Deposit balances change
(Collars in thousands) “Se ee ae =. ‘Transaction and savings accounts $ 3204513 $ (96.878) $ 8 3120611 Time deposits 1,795,934 (67,743) 4,742,059 Brokered deposits 246,889 (984) 7.312) 108.593 Total deposits S_ 5207536 $ (75.605) _$ (120.468) § 5051263. . i ion and i ‘over $60 mil the third quarter;
Slide 20: Strategic vs. Acquired Non-Strategic
= Strategic — Elements ofthe business that ether ‘existed prior to the acquisitions or were acquired with ately 67% of total revenus is derwved from ‘strategie businesses. Not including the FOIC loss ‘sharing income, strategic operations represents 7% of total revenue. ‘Acquired-Non-Strategic ~ Elem
Slide 21: Components of Noninterest Income and Expense
‘Components of Noninterest income ‘Components of Noninterest Expense For the Three Months Ended September 30, 2010 For the Three Months Ended September 30, 2010 (oars in mons) (Cotas in mons) asimtje [FIC Loss Sharing home {BOte: Nenatepe ‘Another step on the path fo success a
Slide 22: Acquisition-Related Items
fiRST first financial bancorp Acquisition-Related Items
Slide 23: Valuation Results of Acquired Loans
under ASC 3-3) which periodically ‘expected cash flows from these loans. * Asa result quarter 2010, loan pools, Third Quarter 2010 Valuation Results Dots n pousants Loans with improvement Loans with impairment * impacted ae ment fatal hed quate 2010 yd > impacted wo month of tt i quate 2010 it ‘Anot
Slide 24: Appendix
fiRST first financial bancorp Appendix
Slide 25: Net interest margin negatively impacted by balance decrease
‘Net interest margin continues to be negatively impacted by the net balance decrease in both the legacy and the acquired loan portfolios ‘= However, the effect ofthe prepayment of FHLB advances and yield adjustment resulting from improvement in the acquired loan portfolio, as well as the continued r
Slide 26: Credit Quality Comparison
fiRST Credit Quality Comparison * NPLs/ Loans
Slide 27: Investment Portfolio
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Slide 28: Sector Allocation and Credit Grade
Sector Allocat 1 Grade = Arata assent rade = Bae scare *otnerconsists primary fregustary stock Net Rategincues on materal amount ot noses seus wh a nonsnvesent grade ang ‘Another step on the path fo succass @
Slide 29: Ey
‘Another step on the path fo success Ey
Slide 30: Income
Income roeatouaree ao he ao Facnaenmanr sie os = ‘Seraueev ara ene weosamasscinae racemoeraterctemtemes ecg SS Ey ‘Another step on the path fo success
Slide 31: Equity Offerings and Capital Purchase Program
= February 2010 follow-on equity offering = Issued 6.4 milion shares at $16.14 per share ‘estimated offering expenses pany Decemiber 2008 under its Capital Purchase Program (CPP) ' ‘Treasury in June 2009 follow-on equity offering = Issued 13.8 milion shares at $7.50 per share ‘estimated offering exp
Slide 32: Leadership
fiRST first financial bancorp Leadership
Slide 33: Executive Management
E,DoualasLatterson ive Vice President, Chief Ope WerLatlerson tas spent ns ents creer vara postons ‘th it enc Banco and Fst rancl Bank and was appdired1o Fis current postion in 2008. Prior fois current apporiment, ervedas Chat Financial Oficn fom 2002 tough 2008 ‘J. Franklin Hall Exocuive Vie Presid
Slide 34: Executive Management (continued)
fiRST first financial bancorp Executive Management (continued) Michael Cassani Executive Vice President, First Financial Wealth Management Neca "2007, ‘management and consuting fem he co founded in 1808, Earer in hs career, he served as Mutual Funds Product Manager at Fit ‘Thied Bank and as an Insti
Slide 35: Executive Management (continued)
fiRST Executive Management (continued) first financial bancorp Lwyman Besa "Vice President, Co-Chiet Retail Banking Officer nancial in 200. Me operating markets. She is also esponsbie for market services and corporate marketing. Pror to joining the company, she spent 19 Years in otal where she serve
Slide 36: Executive Management (continued)
John Borer ies Precidnt, Chief Risk Officer oe Fst Franc 2005 as Regul Fisk Monger. Mc. Sabah nas hen promote Sei Rsk Ofc and Fst Mice brosdot in 2008, luncton which nudes comme'cal apd tal rest. compliance opatnal Marke statege and feplaton ek. Po fon the Company ne wasn he Eterpse Fisk Grou at ih
Slide 37: Another step on the path to success
fiRST first financial bancorp ‘Another step on the path to success
First Financial Bancorp — Q3 2010 Earnings Presentation on 6ix