First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Presentation (September 2009)
49 slides from First Financial Bancorp's investor presentation, Sep 1, 2009
Slide 1: First Financial Bancorp Investor Presentation
fiRST first financial bancorp First Financial Bancorp Investor Presentation September 1, 2009 Exhibit 99.1
Slide 2: Forward-looking statements
{first financial b ‘This presentation should be read in conjunetion with the consolidated fnancial statements, notes and tables in First Financial Bancorp's most recent ‘Annual Report on Form 10-K for the year ended December 31, 2002, Management's analysis contains forwarc-ooking statements that are
Slide 3: Strong operating fundamentals have produced positive results
= Strong operating fundamentals have produced positive results throughout the recessionary period Capital and liquidity significantly exceed amounts necessary to be classified as well-capitalized Solid loan and deposit growth Overall credit quality remained relatively strong throughout most of the e
Slide 4: First Financial Bank was founded in 1863
"First Financial Bank was founded in 1863 = 16 bank/thrift acquisitions from 1989 through 1999 resulted in multiple bank charters and brand identities ® Established Strategic (Rebuilding & Reorganization) Plan in March 2005 — Consolidated and streamlined company to establish one charter and one bran
Slide 5: Strategic plan timeline
Novamner 2005 —_ ay 2008 Feauary 2008 ipa ss mts 006 sy 207 a iy sale Seta enet Problem Loan eoutang 2 oe Puan’ ars January August 2005 2008 SEO1032% yoedto na sug O8 ‘toparzoot Means opie canting Cater Tnrocsccstes eter 205 pee “nother step on the path to success 3
Slide 6: Retail, Commercial Banking and Wealth Management
= Retail Banking = Commercial Banking = Wealth Management ‘nother step on the path to success e
Slide 7: 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 to success 7
Slide 8: Organic growth in key regional markets
= Primary focus and value creation is through organic growth in key regional markets 2008 expansion included the addition of a commercial lending team in Indianapolis (IN), a new business office and banking center in Kettering (OH), and a new banking center in Crown Point (IN) 2009 plans include ope
Slide 9: Our Markets
Our Markets = Client “Intimate” Strategy WH Northwest indiana — Strategic Focus: build long-term relationships with 1 North Central indiana clients by identifying and meeting their financial indianapolis - indiana needs © south Central indiana = Target clients © Northem Ohio — Individuals and small
Slide 10: Strategic purchases of banking centers from Peoples and Irwin
Track record of profitability combined with a strong balance sheet has allowed the company to make strategic decisions and take advantage of market expansion opportunities Purchased 19 banking centers, approximately $538 million in deposits and approximately $436 million in loans from Peoples in FDI
Slide 11: Peoples and Irwin banking center transactions
19 banking centers from Peoples in Cincinnati MSA — Low-risk transaction — Loans purchased under loss sharing agreement with the FDIC for total loss protection of 88.5% —_ Loss sharing arrangement provides significant protection on the acquired loan and foreclosed real estate portfolio. — In-market
Slide 12: Peoples deposit and loan composition
; ss 53 20% appa sus sor Now a savings Time Deposits = Total deposits of $538 million ‘i = Weighted average interest rate: 3.06% ‘ (based on seller's book value) = Ability to modify rates on CD portfolio at time of assumption Total loans of $436 million Weighted average interest rate: 5.73% = Yield
Slide 13: Irwin deposit and loan composition
fiRST first financial bancorp Deposit & Loan Composition Irwin Union Bank and Trust Company S380 400 a DDA mnow savings su 2K Total deposits of $84.6 million Strong core deposit funding Weighted average interest rate: 0.17% First Financial is not assuming any — Outof.market deposits "Includes lon pr
Slide 14: Demographic Profile
fiRST Demographic Profile first financial bancorp [Demographic Profile (First Financial Bancorp) Deposit, Market Share and Population Data as of June 30, 2008 Wenberdi 5 Projected FFBC Banking T0t#!Deposits FFBC Deposits FFBC Deposit Population aay in Market in Market Market Share Change cavostnczns
Slide 15: Retail Banking
fiRST Retail Banking first financial bancorp Strategic Focus — Deposits Smart. — Select consumer lending activities = 104 banking centers serving 9 regional markets in 63 communities in Ohio, Kentucky and Indiana Committed = Managed locally by experienced bankers to your success. = Supported central
Slide 16: Commercial Banking strategic focus
= Strategic Focus — Small / mid-size private businesses located within our regional markets — Commercial & Industrial — Commercial Real Estate — Deposits / Cash Management = Sales Force — 9 Market Presidents — 50 Commercial Lenders — 11 Treasury Management Representatives ‘Another step on the path f
Slide 17: First Financial Wealth Resource Group
= First Financial Wealth Resource Group — Trust — Brokerage — Investment Advisor — Life Insurance = Strategic Focus — Maintain existing client base — Increase share of wallet of existing client base — Integration with retail and commercial banking clients ‘Another step on the path to success. 7
Slide 18: Centralized credit organization
first financial bane Centralized Saal Bancorp / Bark Market Level CeO I [ Chet Creat Ofcer = Cia Repional Crest Documentation! Sgieht Filing | | ‘Commerciat Real Special Assets Estate Specialst Coledtons T T Government Sx Portolo Lending Specatist Credit Analyst 1 I i | ‘Small Business LoanParicoato
Slide 19: Credit quality trends
= Credit quality trends remained relatively stable and within expected range throughout most of economic downturn — Reflecting discipline of originating loans within existing footprint, strang underwriting policies, and proactive management of resolution strategies for problem credits = Credit quali
Slide 20: Net Charge-offs to Average Loans & Leases
Net Charge-offs to Average Loans & Leases 1 Peer Group | (size) [Peer Group Il (geography) OFFEC 1007 20.07 3on7 4a.07, 1008 2008 ©= sane © 40.08 1a09 20.09 eer Group is comerees of sproemately G0 bank hatng comeanies coted throught te Units Stats wh oa see ze rangng for $3-$10 ion eer Groups comprs
Slide 21: Allowance for Loans & Leases to Nonperforming Loans
Allowance for Loans & Leases to Nonperforming Loans [Peer Group |(size) Peer Group II(geography) - CAFFBC. 1007 2007 3007 4007 1008 2008 sae 4008 10.09 20.09 eer Group is somesees of apecceately Go bank hang companies ccted throug the Unites States wih oa see size ranging fam $3 - $10 bon eer Group'
Slide 22: Nonperforming Loans to Total Loans
Nonperforming Loans to Total Loans [Peer Group (size) «1 Peer Group lI (geography) = FFBC. 10.07 20.07 3007 4a07 10.08 2008 3a08 40.08 10.08 20.09 eer Groups comers of apecoeately 20 bank hang cmmpaies nce throught the Unitas Sats wh oa ese ze ranging for $3-$10 bon eer Group lis comprsedo 0 bank ho
Slide 23: Excess consolidated capital
= Excess consolidated capital of $246.6 ak Target “welleaptaized million over regulatory minimum required rinimum level E92 Tere Ey! nie | ere-r25% NA ss adi [Z0> Tange Common Eau) = Based on “well-capitalized” requirements, Ee aaa Comer aces, | 200% NA Na can support bank-level asset growth up 0 oc
Slide 24: Common Share Offering
= Common Share Offering — Completed a public offering of 13.8 million shares at $7.50 per share — Net proceeds of approximately $98 million after deducting underwriting discounts, commissions and estimated offering expenses - Additional shares issued during the second quarter of 2009 had a minimal i
Slide 25: Treasury Series A Senior Preferred Stock
Issued and sold to Treasury 80,000 shares of Series A Senior Preferred Stock for an aggregate purchase price of $80 million * — Liquidation preference of $1,000 per share — Warrant to purchase up to 930,233 common shares, without par value at an initial exercise price of $12.90 per share, subject to
Slide 26: CPP Investment Portfolio
= Established CPP Investment Portfolio with proceeds received from Treasury — Totaled approximately $60 million at June 30, 2009, compared with $225 million at March 31, 2009, and $122 million at December 31, 2008 — Earnings from the CPP Investment Portfolio in the first and second quarters of 2009
Slide 27: Financial Information
fiRST first financial bancorp Financial Information
Slide 28: Second quarter 2009 net income
= Reported net income of $0.5 million or $0.01 per diluted common share = Second quarter 2009 results were impacted by’ — $6.1 million increase in provision expense and a higher level of net charge-offs — Elevated FDIC deposit insurance expense of $3.4 million, including a $1.7 million special asses
Slide 29: Significant items excluded from results
‘The company believes shat excluding hese items presents 2 more represertatve comparison of operational performance for ech peri without the vlaity cf ereditqualty thats typically presentin times of economic stress, 25 wall as other significant items not related tothe company's core business “nother
Slide 30: Earnings Per Diluted Common Share
fiRST first financial bancorp Earnings Per Diluted Common Share 30.21 $021 sats so4 1007 2007 3007 4007 1008 20-08 3008 40-08 10.09 20-09 GAAP Eamings Per Share DEamings Per Share! "Reflects the impact of cersin nonecuring lems. A reconellation presenting 3 summary of tems impacting earings per shar
Slide 31: Pre-tax, pre-provision income excluding significant items
= The following table presents pre-tax, pre-provision income excluding significant items * (Sin thousands) Quarter YeartoDale ‘June 30, June 30, 20-09 10-09 20-08 oS ght Pre-Tax income S 2152 $ 8768 $11,700 | $ 10920 $ 22,581 Excluding Provision Expense 10,388 4.259 2,493 14,817 S716 Pre-Tax, Pre-Pr
Slide 32: Earning asset yield, liability cost and net interest margin
1007 2007 3007 4007 1008 2008 3008 4008 1009 204 HEE Eaming Asset Yield Liability Cost @ Net interest Margin. ~@~Fed Funds Target Rate’ + Represents the Fed Funds Target Rate at the end of the quarter ‘Another step on the path to success 2
Slide 33: Total Loans
50% Total Loans: $2,893 million 12% a 11% 43% Downer Oesupies Single ssuerLoan Panicipations Acquistion & Land Development Non-Owner Gocupied Commercial Resl Estate Commercial & inustat HELOC Residential Real Estate I rstalimant & Otner BA her 1 Shared Natoral Crests Includes $145 milion in loans pu
Slide 34: Earning Assets and Loan Portfolio Composition
Average End of Period Earning Assets Loan Portfolio Composition eta 20% 0% 1s 7 a ts se 2 2} sof] 2 [5% 3 i i i i g a lem | : i | iy é é g 2 1 sm Frag Fvaoot——~Fvaone ——-yr0z0s 200s oor oon roams! 1 ConmercsiLoans & Lessee sien! orgopes Mcommercsl _—mCommeret RE Reset rgngen Heeere loos Sateen Schae
Slide 35: Average Total Loans
first financi bancorp ‘average Talal Loane seme seme sees 2593 vase” 2008” sees dove 1003 2003 sac 2ase 2008 4008 1002 2009 5 ger = Second quarter 2009 average total loans increased $26.1 million or 3.9% from first quarter 2009 — Driven primarily by 9.2% growth in commercial lending portfolios = Ove
Slide 36: Loan Portfolio Strategy
fiRST first financial bancorp Loan Portfolio Strategy Growth Since 2005 * nest rstalimens (21%) ResidewaiMenseges || (56%) Commercial Landing (@emo00) samo} sao) (e000) acon) sac00 es0000 ee0000 Gross loan CAGR = 2.3% due to pianned runoff in indirect loans and residential mortgages December 31, 200
Slide 37: Investment Portfolio Summary
= On-going review of various strategies to increase the size of the investment portfolio and its absolute level of earnings, while balancing capital and liquidity targets — Represents approximately 14.8% of total assets — Portfolio selection criteria avoids securities backed by sub-prime assets and
Slide 38: Sector Allocation and Credit Quality
cial bancor; Sector Allocation Credit Quality Investment Grade * Other includes regulatory stock Investment Grade = A-rated securities Other Investment Grade = B-rated securities ‘Another step on the path to success 38
Slide 39: Liability Mix and Deposit Portfolio Composition
Average End of Period Liability Mix Deposit Portfolio Composition ‘ai so oo = ee cml |. and | lac ES £ 2 $ a i 2 = i one fe be E E E i “eh ' h sow poe! pa pe fer ee! a © cote antics neiase wii oan ; een shes tose ests! atest esi epost ean ies ia <a a ‘Another step on the path to success 33
Slide 40: Average deposits
2982 sees 1a0s” 2048” sous” save” 1009” 2003 average Transaction & serns Depot fies grace SE HY yas” 2009” sas sae 10a” 20s ‘avrage Tena Depots si218 He ti aie 4, ‘Second quarter 2009 average total deposits increased $11.5 million or 1.6% from first quarter 2009 — Driven primarily by 5.2% growth in
Slide 41: Noninterest income year-to-date 2009
13% 17% 10% Year-to-Date 2009 Total Noninterest Income = $26.1 million Trust & Investment Advisory Fees - $6.5 million Service Charges on Deposits - $8.4 million 1 Gain on Mortgage Loan Sales - $0.8 milion Bankcard Income - $2.7 million m Other Mise. Income - $4.4 million Gains on Sales of investmen
Slide 42: Efficiency Ratio
Efficiency Ratio FY-2004 FY-2005 FY-2006 FY-2007 FY-2008 YTD-2009 ‘YTD-2009 = January 1, 2009 ~ June 20, 2008 ‘Another step on the path to success a
Slide 43: Full-Time Equivalent Personnel
ncial bi Full-Time Equivalent Personnel 400: 200. Jun-08 Sep-06 Dec-06 Mar-O7 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 ‘Another step on the path to success 6
Slide 44: Leadership
fiRST first financial bancorp Leadership
Slide 45: Claude E. Davis and C. Douglas Lefferson
Claude E. Davis, President & Chief Executive Officer Claude E. Davis joined First Financial in 2004 as President, Chief Executive Officer, and a member of the Board of Directors. Mr. Davis also serves as Chaliman of the Board of Directors of First Financial Bank. Prior to joining the company, he ser
Slide 46: Richard Barbercheck
Richard Barbercheck ‘Senior Vice President & Chief Credit Officer Richard Barbercheck joined First Financial in 2005 as Senior Vice President and Chief Risk Officer, and was appointed to his current Position in 2008. Mr. Barbercheck is responsible for the administration of the bank's lending portfol
Slide 47: Chief Risk Officer and Retail Lending Manager
‘Senior Vice President & Chief Risk Officer John Sabath joined First Financial in 2005 as Regulatory Risk Manager. Mr. Sabbath was then promoted to Senior Risk Officer and First Vice President, and assumed his current position in 2008. He is responsiile for management of the company's risk managemen
Slide 48: About First Financial Bancorp
fiRST first financial bancorp About First Financial Bancorp First Financial Bancorp is a Cincinnati, Ohio based bank holding company with $3.8 billion in assets. Its banking subsidiary, First Financial Bank, N.A., founded in 1863, provides retail and commercial banking products and services, and inv
Slide 49: Another step on the path to success
fiRST first financial bancorp Another step on the path to success
First Financial Bancorp — Investor Presentation (September 2009) on 6ix