First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — KBW Investor Presentation (July 2007)
47 slides from First Financial Bancorp's conference presentation, Jul 30, 2007
Slide 1: First Financial Bancorp KBW Investor Presentation
First Financial Bancorp KBW Investor Presentation August 1, 2007 Nasdaq:FFBC EXHIBIT 99.1
Slide 2: Forward-Looking Statement Disclosure
Forward-Looking Statement Disclosure Certain statements that 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 First Financial with the Securit
Slide 3: Claude E. Davis, President and CEO
Claude E. Davis President and CEO First Financial Bancorp
Slide 4: Corporate Overview
Corporate Overview Ticker - FFBC (Nasdaq) Market Value - $484 million (as of 7/26/07) Total Assets $3.3 billion
Slide 5: Strategic Plan - Timeline
Strategic Plan - Timeline Yield 6.60% Yield 6.60% Yield 6.90%
Slide 6: Our Strategy
Our Strategy
Slide 7: Our Strategy: Lines of Business
Our Strategy Lines of Business Retail Banking Commercial Banking Wealth Management
Slide 8: Our Strategy: Bank Market Strategy
Our Strategy Bank Market Strategy Organized into 8 markets Managed locally by experienced local bankers Supported centrally
Slide 9: Our Strategy: Markets
Dayton / Middletown - OH Butler / Warren County - OH Cincinnati - OH Northern Kentucky Northwest Indiana Northern Ohio North Central Indiana South Central Indiana Our Strategy
Slide 10: Our Strategy: Market Data (Source: SNL Financial)
Source: SNL Financial Our Strategy
Slide 11: Launching Our New Brand
Our Strategy Launching Our New Brand Branding ... it's much more than our Company Name It's a demonstration of what we believe and how we help our clients be more successful. It's how our clients feel about their experience with us. Brand ties our mission statement, values, and our strategic plan to
Slide 12: Brand Promises
Brand Promises We promise to always be looking ahead. We promise to keep things simple. We promise to make doing business with us easy for our clients. We promise to be a leader - to constantly innovate and improve our systems and responsive abilities so as to serve the needs of our clients better.
Slide 13: Company Goals
Our Strategy Company Goals Top-quartile performance for all stakeholders Sustained and consistent excellence Commitment to growth Effective management of all risks
Slide 14: Goals
Goals Target ratios are long-term objectives and approximate top- quartile peer performance.
Slide 15: Credit Quality
Credit Quality Credit Quality Within estimated range and stable Highlights the success of the restructured credit organization
Slide 16: Current Credit Management System
Current Credit Management System Market-based Centralized Market level
Slide 17: Credit Quality
Credit Quality Remains within a range of acceptability Will continue to actively manage New processes to ensure quality of new loans and manage existing problem credits
Slide 18: Credit Quality
Credit Quality Adjustments made to exclude the effects of loan sales
Slide 19: Acquisition Philosophy
Acquisition Philosophy Primary focus and value creation for the company is organic growth in our key markets Acquisitions can advance market position and accelerate the timing of market share compared to an organic growth only strategy Pricing must be disciplined and favorable compared to the longer
Slide 20: J. Franklin Hall, Chief Financial Officer
J. Franklin Hall Chief Financial Officer
Slide 21: Success To Date
Success To Date First half 2007 financial performance Strong commercial growth Strong net interest margin Improved credit quality Decreasing non interest expense
Slide 22: Success To Date: Strong Commercial Growth
Success To Date Strong commercial growth $207 million in year-over-year commercial loan growth - increase of over 15% Profitable growth with disciplined underwriting and pricing - - emphasizes full relationship
Slide 23: Success To Date: Strong Net Interest Margin
Success To Date Strong net interest margin Adjusted to 4.07% (YTD-FTE) Improving asset mix shift
Slide 24: Success To Date: Improving Credit Quality
Success To Date Improving credit quality YTD annualized net charge-offs of 0.22% Reserve to nonperforming assets of 165% Nonperforming assets to total assets of 0.52%
Slide 25: Success To Date: Decreasing Non Interest Expense
Success To Date Decreasing non interest expense Lowest core expense levels since 2004 Still room for improvement Excess capacity for planned growth
Slide 26: Key Drivers: Net Interest Income
Key Drivers Net Interest Income Margin percentage is on plan 3.90% to 4.05% Loan growth is on plan with late start Deposit growth is behind plan
Slide 27: Earning Assets
Earning Assets COMMERCIAL COMMERCIAL 631651 REAL ESTATE - CONSTRUCTION 87576 REAL ESTATE - MORTGAGE 1534656 INSTALLMENT 589817 CREDIT CARD 20353 LEASE FINANCING 4305 Commercial Loans Consumer Loans Retail Mortgages Leasing Investments FFBC 0.4874 0.148 0.2038 0.0003 0.1605 2006 Average Yield 6.60% Y
Slide 28: Loan Portfolio Composition
38% 30% 28% 20% 18% 10% 5% 0% Loan Portfolio Composition (EOP) 02006 w dune 2007 Commercial Commercial RE_—-Residential RE Instaliment Home E quity 2
Slide 29: Late Start Planned Growth Rate
Late Start Planned Growth Rate
Slide 30: Commercial Loans - 2007
fiRST first financial bancorp, 41,700,000 1,500,000 (s000's) 1,300,000 Jan Commercial Loans - 2007 Feb Mar Apr May Jun Jul Aug Sep Actual —Forecast Oct x
Slide 31: Residential Mortgages - 2007
fiRST first financial bancorp, Residential Mortgages - 2007 700,000 (s000"s) 00,000 400,000 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual —Forecast 2
Slide 32: Includes the effect of indirect loans
Includes the effect of indirect loans
Slide 33: Indirect Loans - 2007
fiRST first financial bancorp, Indirect Loans - 2007 120,000 (s000"s) 49,900 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Now Dec ‘Actual —Forecast 4
Slide 34: Liability Mix
Liability Mix COMMERCIAL COMMERCIAL 631651 REAL ESTATE - CONSTRUCTION 87576 REAL ESTATE - MORTGAGE 1534656 INSTALLMENT 589817 CREDIT CARD 20353 LEASE FINANCING 4305 Non-Interest Bearing Deposits Interest Bearing Deposit Time Deposits Short-term Debt FHLB Advances Trust Preferred FFBC 13.5 39.76 40.7
Slide 35: Deposit Portfolio Composition
Deposit Portfolio Compos! 50% 45% 02006 @June 2007 40% 35% 30% 5% 20% 15% 10% 5% 0% Norinterest Bearing Interest Bearing Time Es
Slide 36: Transactional Deposits - 2007
fiRST first financial bancorp, Transactional Deposits - 2007 4,300,000 1,800,000 1,700,000 1,600,000 (s000"s) 1,500,000 4,400,000 1,300,000 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual —Forecast a
Slide 37: Key Drivers: Non Interest Income
Key Drivers Non Interest Income Diversified with improving trends Service charges on deposit accounts year-to-date performance tied to lack of deposit growth Wealth management fees on pace with slow start
Slide 38: Non Interest Income
Non Interest Income COMMERCIAL COMMERCIAL 631651 REAL ESTATE - CONSTRUCTION 87576 REAL ESTATE - MORTGAGE 1534656 INSTALLMENT 589817 CREDIT CARD 20353 LEASE FINANCING 4305 Trust and I/A fees Total service charges on deposits Gain on mortgage loan sales Bankcard interchange income Other misc income FF
Slide 39: Key Drivers: Non Interest Expense
Key Drivers Non Interest Expense Within estimated range Some additional savings were slower to occur (i.e. PHH saves, etc.) balanced to mitigate client service risks Identified additional savings to begin in 3Q07 and 4Q07 to compensate for lower revenue growth
Slide 40: Efficiency
Efficiency 2004 Y 2005 Y 2006 Y June YTD 2007 2nd Half 2007 GAAP 0.6679 0.7369 0.7671 0.6824 Forecast 0.65 Target = 55 to 60% Identified opportunities to-date for 62 - 65% efficiency ratio for 4Q run rate Long-term target remains at 50 - 55%
Slide 41: Headcount
Headcount 1,585 1,204 4,200 4,000 800 600 CPP LLL LE PPE PEEPS 22
Slide 42: Key Drivers: Capital
Key Drivers Capital Within estimated range with share repurchase at anticipated levels
Slide 43: Capital
Capital Defined within boundaries of the Capital Plan Increase dividend when sustainable Repurchase shares when prudent
Slide 44: Capital: Share Repurchases
Capital 2000 2001 2002 2003 2004 2005 2006 2007 FFBC 987.6 1847.5 1839.7 1230.7 408.6 4166 383 2000 Modified Dutch Tender Offer repurchase of 3,250,000 shares in December 2005 Estimated
Slide 45: 2007 - Keys to Success
2007 - Keys to Success Core run rate in 4Q that supports a strong 2008 Continued success in commercial lending Begin to show strength in deposit growth Continued credit quality strength Further expense reductions Faster revenue growth
Slide 46: Leverage Points
Leverage Points New metropolitan markets - success Sales forces expansion - success Efficiency - in process / performance Loan mix shift to commercial - success / timing Wealth Management - in process / timing Strong capital Funding position - dependent on deposit growth
Slide 47: First Financial Bancorp KBW
First Financial Bancorp KBW Investor Presentation August 1, 2007 Nasdaq:FFBC
First Financial Bancorp — KBW Investor Presentation (July 2007) on 6ix