First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Presentation (July 2005)
43 slides from First Financial Bancorp's investor presentation, Jul 27, 2005
Slide 1: First Financial Bancorp
First Financial Bancorp
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the Act). In addition, certain statements in future filings by Bancorp with the Securities and Exchange C
Slide 3: Corporate Overview
Corporate Overview · Ticker – FFBC (Nasdaq) · Market value – $830 million (as of 7/20/05) · Total Assets $3.9 billion (as of 3/31/05)
Slide 4: Background
Background
Slide 5: Corporate Overview
Corporate Overview Headquartered in Hamilton, Ohio, First Financial Bancorp is a $3.9 billion publicly owned bank holding company whose focus is community banking. Founded in 1983, First Financial now operates 5 lines of business with 105 retail banking centers in Ohio, Indiana, Michigan, and Kentuc
Slide 6: Lines of Business
Lines of Business Commercial Banking ($3.8 Billion) · First Financial Bank · Sand Ridge Bank · Community First Bank Wealth Management · $2.5 billion in assets under management Insurance Brokerage · $3 million in revenue
Slide 7: Market Overview
Market Overview ouisnie
Slide 8: Strategic Plan
Strategic Plan
Slide 9: Strategic Plan
Strategic Plan · New CEO / New Plan · Re-focus on: – Community Banking – People led sales culture – Growth in Banking, Wealth Management, and Insurance – Commitment to superior performance · 2005 year of transition
Slide 10: Strategic Plan — Goals
Strategic Plan — Goals · Top-quartile performance for all stakeholders in the long term · Sustained and consistent excellence · Commitment to growth · Effective management of all risks
Slide 11: Financial Overview
Financial Overview
Slide 12: Financial Performance
Financial Performance 2004 2005 Q1 2005 Q2 ROE 11.21% 11.73% 10.74% ROA 1.05% 1.13% 1.03% Efficiency Ratio 66.79% 66.38% 67.66%
Slide 13: Strengths: Capital position
Strengths • Capital position
Slide 14: Tangible Common Equity / Tangible Assets
TANGIBLE COMMON EQUITY / TANGIBLE ASSETS 2000 2001 2002 2003 2004 Q1 2005 FFBC PEER
Slide 15: Strengths: Capital Position, Strong franchises in good markets
Strengths · Capital Position · Strong franchises in good markets
Slide 16: Markets
Markets · The 5-year CAGR for all current markets is 7.4% · The 5-year CAGR for our top 5 markets, which represent 69% of our deposit base, is 6.4%
Slide 17: Strengths: Stable net interest margin
Strengths · Capital position · Strong franchises in good markets · Stable net interest margin
Slide 18: Net Interest Margin
NET INTEREST MARGIN 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
Slide 19: Strengths: Good credit quality
Strengths · Capital position · Strong franchises in good markets · Stable net interest margin · Good credit quality
Slide 20: Credit Quality
Credit Quality 2002 2003 2004 Q1 2005 Q2 2005 Net Charge-off Ratio 0.54% 0.69% 0.26% 0.20% 0.20% Non-performing Assets/Assets 0.74% 0.73% 0.54% 0.50% 0.62% Reserve Ratio 1.77% 1.71% 1.61% 1.59% 1.55% Reserve/NPA’s 175% 161% 214% 225% 182%
Slide 21: Strengths: Strong fee income base
Strengths Capital position Strong franchises in good markets Stable net interest margin Good credit quality Strong fee income base
Slide 22: Non-Interest Income to Operating Income
NON-INTEREST INCOME TO OPERATING INCOME 33% 29% 25% 20% 16% 12% 8% 4% 0% 33% 29% 25% 20% 16% 12% 8% 4% 0%
Slide 23: Opportunities to Improve
Opportunities to Improve · Efficiency · Growth strategies · Capital management
Slide 24: Commitment to Growth
Commitment to Growth
Slide 25: Total Assets
TOTAL ASSETS ($’s in millions) $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- Acquisitions $127 $98 Acquisitions $127 $98
Slide 26: Revenue Growth Opportunities
Revenue Growth Opportunities • Commercial lending focus, shift in asset mix
Slide 27: Loan Mix (4Q 2004)
LOAN MIX (4Q 2004) 1-4 Family RE Commercial RE Farmland RE Commercial & Industrial Loans to individuals Agriculture Other
Slide 28: Revenue Growth Opportunities
Revenue Growth Opportunities Commercial lending focus, shift in asset mix Metropolitan market expansion Announced Cincinnati leader Branch expansion in growth markets 5 opened or under construction in 2005 Wealth management expansion of sales force and into all parts of the franchise Acquisitions wi
Slide 29: Future Announcements
Future Announcements · Branch and Market Evaluation · Capital Plan
Slide 30: Other Financial Information & Quarterly Results
Other Financial Information & Quarterly Results
Slide 31: Shares Repurchased
SHARES REPURCHASED (000’s) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2000 2001 2002 2003 2004 Est. 2005
Slide 32: Dividend History (1Q95 – 1Q05)
DIVIDEND HISTORY (1Q95 – 1Q05) $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 $- 1Q9 5 4Q9 5 3Q9 6 2Q 9 7 1Q 9 8 4Q9 8 3Q9 9 2Q0 0 1Q0 1 4Q0 1 3Q0 2 2Q 0 3 1Q 0 4 4Q0 4
Slide 33: Earnings Per Share
EARNINGS PER SHARE $0.25 $0.24 $0.23 $0.22 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005
Slide 34: Return on Average Equity
RETURN ON AVERAGE EQUITY 12.00% 11.60% 11.20% 10.80% 10.40% 10.00% Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005
Slide 35: Total Loans
TOTAL LOANS $2,880,000 $2,820,000 $2,760,000 $2,700,000 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005
Slide 36: Total Deposits
TOTAL DEPOSITS $3,000,000 $2,900,000 $2,800,000 $2,700,000 $2,600,000 $2,500,000 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005
Slide 37: Non-Interest Bearing Deposits
NON-INTEREST BEARING DEPOSITS $440,000 $430,000 $420,000 $410,000 $400,000 $390,000 $380,000 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005
Slide 38: Deposit Mix (Avg Bal Q2 2005)
DEPOSIT MIX (AVG BAL Q2 2005) NONINTEREST-BEARING INTEREST BEARING SAVINGS TIME
Slide 39: Non-Interest Income Mix (Q2 2005)
NON-INTEREST INCOME MIX (Q2 2005) Service charges on deposit accounts Trust Bankcard interchange Gains on sale of mortgage loans Investment securities gains (losses) Other
Slide 40: Efficiency Ratio
EFFICIENCY RATIO 70% 65% 60% 55% 50% 45% 40% 35% 30% 30% 2000 2001 2002 2003 2004 FFBC PEER STRATEGIC PLAN — OPERATIONS
Slide 41: One-time charges associated with consolidation
One-time charges associated with consolidation — $4.5 million – $2.9 million for staff reductions – $0.6 million for consulting and professional services – $1.0 million in other Charges as of 2Q 2005 — $0.7 million – $471,000 for staff reductions – $165,000 for consulting and professional services –
Slide 42: Questions
Questions
Slide 43: First Financial Bancorp
First Financial Bancorp
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