Slide 1: First Financial Bancorp Investor Presentation August 2015
First Financial Bancorp Investor Presentation August 2015 EXHIBIT 99.1
Slide 2: Forward-looking statements
2 Certain statements contained in this presentation which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to, projections of the
Slide 3: Investor Highlights
3 Investor Highlights $7.4 billion, leading community bank with 106 banking centers and 131 ATMs in Ohio, Indiana & Kentucky: #2 in Ohio and #5 in Indiana1 Well-positioned as local alternative to “big banks” in metropolitan and non-metropolitan markets Personalized service, creative marketing and em
Slide 4: Company Overview
4 Company Overview Founded in 1863 Headquarters: Cincinnati, OH Primary Footprint: Ohio, Indiana and Kentucky Nationwide franchise lending business Nationwide specialty lending franchise to insurance agents and agencies Lines of business: commercial, specialty finance, consumer, wealth management, m
Slide 5: Cincinnati Market Overview
5 Cincinnati Market Overview Population of 2.1 million Diverse economy anchored by 10 Fortune 500 companies Unemployment rate of 4.6% as of June 2015 Cincinnati, OH-KY-IN MSA Market Highlights Source: City of Cincinnati, SNL Financial. Key Employers Pro Forma Deposit Market Share Cincinnati, OH-KY-I
Slide 6: Management Team
Name and Title Years with FFBC Years of Financial Services Experience Prior Experience Claude E. Davis CEO 11 28 Prior to joining First Financial in 2004, Mr. Davis spent 17 years with Irwin Financial Corporation in various executive positions and was CEO and President of Irwin Union Bank at the tim
Slide 7: Strategy and Execution – Recent History
7 Strategy and Execution – Recent History Franchise Repositioning 2005 – 2008 While the industry was pursuing growth via high-priced acquisitions and real estate lending, First Financial focused inward. FDIC Acquisitions 2009 While the industry was dealing with credit and operational issues, First F
Slide 8: Oak Street Holdings Corporation Overview
8 Oak Street Holdings Corporation Overview Nationally Recognized Specialty Lender to Insurance Agents and Agencies Founded: 2003 Headquarters: Indianapolis, Indiana Assets / Loans: $242 million / $238 million Target Lending Industries: Provides commission-based commercial financing exclusively to in
Slide 9: Acquisition Overview and Pro Forma Impact
9 Acquisition Overview and Pro Forma Impact 2016 earnings accretion of $0.16 - $0.20 per share Net interest margin expansion of more than 20 bps related to Oak Street’s portfolio yield of approximately 9% Oak Street warehouse-line funding structure to be replaced with lower- cost Bank funding source
Slide 10: Franchise Evolution Driven by Strong Core Loan and Deposit Growth
17% 27% 5% 5%22% 44% 7% 9% 2% 1% 7% 11% 40% 3% 2009 2Q15 Covered loans HE, Credit Card, Lease Financing Installment Real estate-residential Real estate-commercial Real estate-construction Commercial $4.8 $4.9 60% 97% 40% 3% 2009 2Q15 Covered Loans Uncovered Loans $4.8 $4.9 42% 22% 23% 34% 20% 21% 16
Slide 11: Comprehensive and Diversified Product Suite
11 Comprehensive and Diversified Product Suite1 Breakdown of Commercial Loans ($mm) Consumer Loan Breakdown ($mm) Breakdown by Geography ($mm) Breakdown by Rate Type 1 Includes total uncovered and covered as at June 30, 2015. Commercial loan loss-sharing with the FDIC ended Oct. 1, 2014. Residential
Slide 12: Effective Core Deposit Generator
12 Effective Core Deposit Generator Local market focus: smaller markets have historically provided stable, low-cost funding sources to First Financial Client-focused business model: focus on building long-term relationships Transformed FDIC-assisted acquisitions into core deposit generators Average
Slide 13: High Quality Deposit Franchise
13 High Quality Deposit Franchise ($bn) 2008-2015Q2 CAGR Deposit Type CAGR Noninterest-bearing 19.7% Time 1.4% Savings 20.4% Interest-bearing 9.9% 14.8% 15.5% 13.7% 16.8% 22.3% 23.7% 22.7% 22.7% 23.3% 22.9% 19.8% 21.6% 23.3% 23.4% 23.3% 21.7% 21.3% 20.6% 20.9% 23.0% 29.8% 30.6% 32.8% 33.3% 33.4% 33.
Slide 14: Solid Capital Base
14 Solid Capital Base Tangible Common Ratio Total Capital Ratio Tier 1 Common Ratio Leverage Ratio FFBC Peers1 1 Peers include banks comprising the KBW Regional Bank Index from which Q2 2015 data was available. Source: SNL Financial. 10.3% 9.1% 8.1% 8.7% 7.0% 7.7% 8.4% 9.1% 9.8% 10.5% 11.2% 2010 201
Slide 15: Stable and Consistent Profitability
$9.7 $17.8 $15.6 $14.3 $17.2 $16.0 $15.6 $17.9 $17.0 $17.8 $16.2 $16.3 $15.1 $17.0 $16.3 $18.0 $16.0 $16.3 $18.7 $19.6 $17.6 $18.9 Q1' 10 Q2' 10 Q3' 10 Q4' 10 Q1' 11 Q2' 11 Q3' 11 Q4' 11 Q1' 12 Q2' 12 Q3' 12 Q4' 12 Q1' 13 Q2' 13 Q3' 13 Q4' 13 Q1' 14 Q2' 14 Q3' 14 Q4' 14 Q1' 15 Q2' 15 15 Stable and C
Slide 16: Consistent Top Tier Performance
16 Consistent Top Tier Performance NIM (FTE)1,2 ROATCE2 Efficiency2 ROAA2 FFBC Peers3 1 Assuming a 35% marginal tax rate for FFBC. 2 For the 2013 and 2014 periods, adjusted for acquisition related expenses, expenses related to efficiency initiatives, gains related to banking center closings, legal s
Slide 17: Enterprise Risk Management
17 Enterprise Risk Management Ongoing management of risks through a structured enterprise risk management (ERM) approach that routinely assesses overall level of risk, identifies specific risks and evalutes the steps being taken to mitigate those risks Approach is consistent with risk framework that
Slide 18: Credit Risk Management Philosophy
18 Credit Risk Management Philosophy Conservative credit culture inherent in First Financial’s philosophy Based upon creditworthiness, profitability and growth potential Relationship-focused using consultative client management Team-based collaborative decision making with sales and credit House len
Slide 19: Strong Credit Quality
19 Strong Credit Quality NPAs / Assets Reserves / NPLs NPLs / Loans NCOs / Average Loans Total1 Peers3 Excluding Covered Loans2 MW Peers4 1 Total numbers include asset quality data for both covered and uncovered loan. 2 For 2014 onwards, FFBC does not report covered loan asset quality data separatel
Slide 20: Interest Rate Risk Management / Sensitivity
20 Interest Rate Risk Management / Sensitivity Sensitivity of Projected Annualized Net Income & Economic Value of Equity1 -100 BP2 +100 BP +200 BP Net Interest Income – Year 1 (4.87)% (0.87)% 0.15% Net Interest Income – Year 2 (4.98)% 2.45% 4.86% Economic Value of Equity (4.79)% (2.13)% (0.94%) 1 Re
Slide 21: Healthy Liquidity Position
12.1% 14.8% 85.3% 91.2% 16.8% 19.8% 77.9% 85.2% FFBC Peers FFBC Peers Peers PeersFFBC FFBC 21 Healthy Liquidity Position1 Core Deposits / Total Deposits Cash + AFS Securities / Earning Assets Wholesale / Total Funding 3 Loans / Deposits 1 All figures as of most recent quarter available. 2 Peers incl
Slide 22: Securities Portfolio
22 Securities Portfolio Portfolio Duration (Years) Ratings 4.3 3.4 3.4 Dec. 2013 Dec. 2014 Jun. 2015 2014Q4 2015Q1 2015Q2 ($mm) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Available for Sale: US Treasuries $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 US Government Agencies and Cor
Slide 23: Growth Strategy
23 Growth Strategy Organic growth Focus on C&I, franchise and specialty lending areas Invest in strategic banking center additions in existing metro markets Continued focus on core deposits – capturing full relationships, incentivizing lenders, improving retail delivery channel and services Enhance
Slide 24: 2015 Strategic Priorities
24 2015 Strategic Priorities Achieve growth through deepening relationships with and retaining current clients as well as redefining our approach in our metropolitan markets Develop standard and repeatable processes to ensure consistent delivery of our client service experience and improved operatio
Slide 25: Investor Highlights
25 Investor Highlights $7.4 billion, leading community bank with 106 banking centers and 131 ATMs in Ohio, Indiana & Kentucky: #2 in Ohio and #5 in Indiana1 Well-positioned as local alternative to “big banks” in metropolitan and non-metropolitan markets Personalized service, creative marketing and e
Slide 26: Another step on the path to success
‘Another step on the path to success
Slide 27: Financial Highlights
2010 2011 2012 2013 2014 Q1 2015 Q2 2015 ($mm) Assets $6,250 $6,672 $6,497 $6,417 $7,218 $7,246 $7,383 Loans 4,327 4,047 3,943 3,972 4,788 4,778 4,874 Deposits 5,146 5,643 4,956 4,838 5,656 5,715 5,716 Shareholders' Equity 697 712 710 682 784 796 802 Tangible Common Ratio 10.3% 9.2% 9.5% 9.2% 9.0% 9
Slide 28: Reconciliation for Pre-provision Net Revenue
28 Reconciliation for Pre-provision Net Revenue 1 Represents income before taxes plus provision for all loans less FDIC loss sharing income. 2 Reimbursements related to losses on covered OREO and other credit-related costs are included in FDIC loss sharing income, which is excluded from the pre-tax,
Slide 29: Reconciliation for Pre-provision Net Revenue
29 Reconciliation for Pre-provision Net Revenue 1 Represents income before taxes plus provision for all loans less FDIC loss sharing income. 2 Reimbursements related to losses on covered OREO and other credit-related costs are included in FDIC loss sharing income, which is excluded from the pre-tax,
Slide 30: Reconciliation for Efficiency Ratio 2014Y 2013Y
30 Reconciliation for Efficiency Ratio 2014Y 2013Y Reported Net Interest Income $228,625 Reported Non Int Income 63,965 (-) Gain on sale of Inv. Securities Q4 (20) (-) Gain on sale of Inv. Securities Q1 (50) (-) Gain on Litigation Settlement Q3 (97) Adjusted Non Int Income 63,798 Reported Non Int Ex
Slide 31: Reconciliation for Efficiency Ratio 2012Y 2011Y
31 Reconciliation for Efficiency Ratio 2012Y 2011Y Reported Net Interest Income $253,341 Reported Net Interest Income $263,896 Reported Non Int Income $122,421 Reported Non Int Income $142,531 (-) Gain on sale of Inv. Securities Q4 (1,011) (-) Gain on sale of Inv. Securities Q4 ($2,541) (-) Gain on