First Financial Corporation · NASDAQ:THFF
First Financial — Investor Presentation (September 2020)
25 slides from First Financial's investor presentation, Sep 8, 2020
Slide 1: Thirty-two consecutive years of increased shareholder dividends
Thirty-two consecutive years of increased shareholder dividends : THFF September 9, 2020
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: Executive management team
Norman L. Lowery Chairman, Chief Executive Officer, President Norman D. Lowery Chief Operating Officer, SVP Rodger A. McHargue Chief Financial Officer, SVP Steve Holliday Chief Credit Officer, SVP
Slide 4: Indiana's first multi-bank holding company
Indiana’s first $4.4 billion in assets Illinois Multi-bank holding company June 30, 2020 32 locations Established 1984 $1.2 billion Indiana 86 banking locations Trust and Assets Under Management 34 locations Illinois, Indiana, Kentucky, Tennessee 82 banking centers First Financial Bank 4 loan produc
Slide 5: Our Vision, Mission and Values
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 with dignity and respect. We embrace the diversity of our customers and co-workers.
Slide 6: Value Proposition
Value Proposition Capital to Support Increasing Strong Risk Strategic Growth Shareholder Management Value Experienced Management Team Proven Earnings Well-positioned Balance Sheet & Strong Asset Quality 180+ year Operating Track Record 6
Slide 7: Covid-19 Impact
Covid-19 Impact Loan Modifications • $321.8 million commercial credit requests granted ✓ Most 90-day interest only • $8.7 million mortgage credit requests granted • $13.0 million consumer credit requests granted • Initially, 12.9% of loan portfolio with some kind of modification; 100% remain modifie
Slide 8: Covid-19 Impacted Industries
Covid-19 Impacted Industries Hotels • 19 relationships with $77.58 million outstanding (3.99% of Commercial Loans) • Average loan size $2.5 million • Average LTV at origination is 75% • Hilton Garden Inn, Home Suites, Holiday Inn Express, Quality Inn, Hampton Inn Restaurants • 200 transactions with
Slide 9: Strong Capital
Strong Capital TCE Key Capital Ratios and Per 14.00% Share Data as of June 30, 2020 10.50% • Total Risk Based 16.17% 7.00% • Tier 1 Risk Based 15.44% 3.50% 0.00% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2Q20 • Tier 1 Leverage 11.64% • Book Value $43.04 TBV • Tangible Book Value $36.59 $40.0
Slide 10: History of Earnings and Dividend Growth
History of Earnings and Dividend Growth Earnings and Dividends Per Share 4.00 3.80 3.80 CAGR 2000 - 2019 EPS 6.36% 3.12 3.00 2.83 Dividends 5.37% 2.55 2.48 2.50 2.37 2.35 2.38 2.14 2.10 2.07 2.00 1.95 1.94 1.89 1.72 1.78 1.72 1.77 1.73 1.02 1.03 0.93 0.94 0.96 0.97 0.98 0.99 1.00 0.84 0.86 0.88 0.90
Slide 11: Strong Asset Quality
Strong Asset Quality Reserves / Loans • Centralized committee structure 23,000 0.83% 0.90% 0.78% • We are an in-market lender to clients 0.67% 0.68% 0.67% 17,250 0.68% • Disciplined underwriting 11,500 0.45% • CECL implementation delayed 5,750 0.23% '- 0.00% 2Q19 3Q19 4Q19 1Q20 2Q20 Amount ($000) %
Slide 12: Better than Peer Performance
Better than Peer Performance Non-interest Income % Avg Assets Return on Assets 1.60 1.56 1.70 1.61 1.42 1.30 1.38 1.33 1.32 1.21 1.22 1.20 1.12 1.28 1.22 1.19 1.12 1.01 0.98 0.92 0.95 0.80 0.91 0.92 0.92 0.85 0.93 0.93 0.91 0.93 0.9 0.9 0.89 0.70 0.43 0.40 '- - 2014 2015 2016 2017 2018 2019 1Q20 201
Slide 13: Net Interest Income: Loan Growth Driving Growth in Income
Net Interest Income Loan Growth Driving Growth in Income $’s in (000’s) NII 4.42% CAGR NIM 140,000 131,652 6.00 116,579 107,832 104,507 104,973 107,857 105,000 5.00 72,245 4.32 72,245 70,000 4.25 4.00 4.08 4.04 4.04 4.11 4.05 35,000 3.00 '- 2.00 2014 2015 2016 2017 2018 2019 YTD 6/30/20 13
Slide 14: Loan Portfolio
Loan Portfolio ($000) Balance Percent Commercial 1,953,465 61% Diversified Loan Portfolio Consumer 543,276 15% Residential 280,893 24% Total 2,777,634 100% Loan Portfolio Balance ($000) Commercial Loans By State IL Commercial Commercial 13% 61% $1,953,465 IN 48% KY Consumer 8% 15% TN 10% Consumer Re
Slide 15: Consumer Loan Portfolio
Consumer Loan Portfolio Total Loans $543,276,000 97.49% Secured Consumer Loans 49.08% ≥ 700 FICO 21.35 % 650 to 699 14.45% 600 to 649 Other 12.71% < 600 13% Indirect Auto 2.41% No Score Credit Card 57% 1% 57.28% Indirect Auto HELOC 18.28% New 12% 81.72% Used Asset Quality Direct Auto 17% 30 – 89 day
Slide 16: Mortgage Loan Portfolio
Mortgage Loan Portfolio Total Loans $280,893,000 83% YTD Production Sold • Primarily in-market lender Portfolio Adjustable Fixed 58% 42% • Underwritten to FHLMC Guidelines • 82.92% with credit scores > 650 • Average LTV 60.78% Asset Quality • 24 monthly average past due 2.20% 16
Slide 17: Commercial Real Estate Mix
Commercial Real Estate Mix Non-owner Occupied CRE as % of Total Commercial Real Estate Loans Total Commercial Real Estate Loans Owner Occupied CRE $179.093 MM Residential Multi-family 18.88% Residential Multi-family $148.684 MM Retail 11.53% NOO Retail $90.765 MM Student Housing 11.00% Student Housi
Slide 18: C&I Loans as a % of Total Commercial Loans
C&I Loans as a % of Total Commercial Loans Amusement & Recreation 2% Agriculture 26.90% $265,385,527 Religious Organizations Construction 9.06% $ 89,397,232 2% Other Health Services 8.61% $ 84,966,979 Forestry, Oil/Gas & Energy 8% 3% Banking & Financial Services 5.90% $ 58,203,186 Schools Agricultur
Slide 19: Strong Core Deposit Franchise
Strong Core Deposit Franchise Cost of Deposits 1.40% 1.30% Deposit Mix 1.05% 0.87% 0.70% 0.63% 0.56% 0.45% 0.38% 0.37% 0.35% 0.25% 0.25% Demand and Savings 0.19% 0.16% 0.17% 64.5% 0.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD Time 16.0% BHC UBPR Interest Expense Non-interest
Slide 20: Disciplined Expense Management
Disciplined Expense Management Non-interest Expense Efficiency 110000 1.83% CAGR $104,348 80 $98,398 $95,584 $91,289 $90,308 $88,747 82500 70.99 71.25 69.81 68.42 68.39 $54,437 63.68 55000 64.73 62.21 62.5 61.22 61.65 61.62 61.23 60.94 59.4 58.43 27500 53.75 0 2014 2015 2016 2017 2018 2019 2Q20 45 2
Slide 21: Trust and Asset Management
Trust and Asset Management $1.2 billion Trust assets under management Trust Services include: • Professional Farm Management 2019 YTD 2020 • Trust Administration Revenue ($000) 5,155 2,628 • Estate Administration Income before Tax 1,542 672 • Retirement Services • Corporate Trust Services 21
Slide 22: New Opportunities: Kentucky and Tennessee
New Opportunities Kentucky and Tennessee The Nashville region is defined by a diverse economy, low costs of living and doing business, a creative culture and a well-educated population. A thriving job market (38% job growth since 2009) and an exploding entertainment scene bring thousands of resident
Slide 23: Key Investment Points
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 quali
Slide 24: Financial Highlights
3 Year Financial Highlights Tax Cuts & Jobs Act 2017 2018 2019 2Q 2020 Net Interest Income 107,857 116,579 131,652 72,245 Provision 5,295 5,768 4,700 5,655 Non-interest Income 35,938 38,206 38,452 17,871 Non-interest Expense 88,747 91,289 104,348 54,437 Net Income 29,131 46,583 48,872 24,105 Earning
Slide 25: Thank You! Contact details
Norman L. Lowery Rodger A. McHargue Chairman, Chief Executive Officer, President Chief Financial Officer, SVP 812.238.6487 / lowerynl@first-online.com 812.238.6334 / rmchargue@first-online.com Norman D. Lowery Steve Holliday Chief Operating Officer, SVP Chief Credit Officer, SVP 812.238.6185 / lower
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