First Financial Corporation · NASDAQ:THFF
First Financial — Investor Presentation (September 2022)
23 slides from First Financial's investor presentation, Sep 6, 2022
Slide 1: Thirty-four consecutive years of increased shareholder dividends
Thirty-four consecutive years of increased shareholder dividends. : THFF
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. Lower y Chairman, Chief Executive Officer, Presiden t Norman D. Lower y Chief Operating Officer, SV P Rodger A. McHargu e Chief Financial Officer, SV P Steven H. Hollida y Chief Credit Officer, SVP
Slide 4: First Financial Corporation overview
First Financial Corporatio n Indiana’s first multi-bank holding company Established 198 4 84 Locations 78 full service banking center s 6 loan production office s $5.0 Billion in Assets June 30, 202 1 $1.6 Billion Trust and Assets Under Managemen t First Financial Bank Primary subsidiary founded in
Slide 5: Our Vision, Mission and Values
5 Our Visio n To enhance our clients’ abilities to spend, save, borrow and invest. Our Missio n To deliver financial solutions that are simple, fast and easy. Our Value s We build strong relationships and treat each other with dignity and respect .. We embrace the diversity of our customers and co-w
Slide 6: Value Proposition
6 Capital to Support Strategic Growth Value Proposition Increasin g Shareholder Value Experienced Management Team Proven Earnings 180+ year Operating Track Record Strong Risk Management Well-positioned Balance Sheet & Strong Asset Quality
Slide 7: Strong Capital
TBV $0.00 $10.00 $20.00 $30.00 $40.00 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2Q22 CAGR 5.3% Strong Capital Key Capital Ratios and Per Share Data As of June 30, 2022 7 0.00% 3.50% 7.00% 10.50% 14.00% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2Q22 TCE Total Risk Based 14.6
Slide 8: History of Earnings and Dividend Growth
History of Earnings and Dividend Growth Earnings and Dividends Per Share '- 1.25 2.50 3.75 5.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1.06 1.04 1.02 1.02 2.50 0.99 0.98 0.97 0.96 0.94 0.93 0.91 0.90 0.88 0.86 0.84 0.80 0.75 0.65
Slide 9: Strong Asset Quality
9 FFIEC BHC UBPR Data Centralized committee structure We are an in-market lender to clients Disciplined underwritin g Net Charge-offs 0.00% 0.04% 0.08% 0.11% 0.15% '(500) '- 500 1,000 1,500 2,000 2Q21 3Q21 4Q21 1Q22 2Q22 Dollar ($000) % Total Loans 0.00% 0.03% 0.07% 0.01% 0.01% 0.00% 0.03% 0.07% 0.0
Slide 10: Better than Peer Performance
Better than Peer Performance Non-interest Income % Avg Assets 10 '- 0.43 0.85 1.28 1.70 2016 2017 2018 2019 2020 2021 1Q22 FFC Peer 0.85 0.94 0.98 0.9 0.9 0.93 0.91 1.08 0.88 1.00 1.12 1.32 1.22 1.61 0.85 0.94 0.98 0.9 0.9 0.93 0.91 Return on Assets '- 0.40 0.80 1.20 1.60 2016 2017 2018 2019 2020 20
Slide 11: Net Interest Income
Net Interest Income Loan Growth Driving Growth in Income 2.00 3.00 4.00 5.00 6.00 '- 37,500 75,000 112,500 150,000 2016 2017 2018 2019 2020 2021 YTD 06/30/22 NII NIM 3.31 3.2 4.05 4.25 4.32 4.11 4.04 78,280 143,401 146,346 131,652 116,579 107,857 104,973 3.31 3.2 4.05 4.25 4.32 4.11 4.04 9.03% CAGR
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 12 Commercial Loans By State Loan Portfolio Balance ($000) Total $2,892,488 Loan Portfolio ($000) Balance Percent Commercial 2,010,949 69.5% Consumer 627,673 21.7% Residential 253,866 8.8% Total 2,892,488 100% Other 33% TN 13% KY 6% IL 11% IN 37% Residential 9% Consumer 22
Slide 13: Consumer Loan Portfolio
Consumer Loan Portfolio Total Loans $627,673,000 98.0% Secured Consumer Loan s 49.0% ≥ 701 FIC O 24.0% 651 to 70 0 19.0% 600 to 65 0 8.0% < 600 (Includes No Score ) 62.1% Indirect Auto ($389,925,881 ) 13.9% New ($54,275,054 ) 86.1% Used ($335,650,836 ) Asset Qualit y 30 – 89 day YTD Average Past Due
Slide 14: Mortgage Loan Portfolio
Mortgage Loan Portfolio Total Loans $253,866,000 64.0% YTD Production Sol d • Primarily in-market lende r Portfoli o • Underwritten to FHLMC Guideline s • 86.1% with credit scores > 65 0 • Average LTV 64.5% % Asset Qualit y • 12 monthly average past due 1.90% 14 Adjustable 58% Fixed 42%
Slide 15: Commercial Real Estate Mix
Commercial Real Estate Mix Non-owner Occupied CRE As % of Total Commercial Real Estate Loans Residential Multi-family 36.58% Retail 10.19% Hotel 8.95% Property Management 6.10% Student Housing 4.20% Medical Office 2.31% Other 9.64% 15 Owner Occupied CRE $177,323 M Residential Multi-family $356,044 M
Slide 16: Commercial loans by industry
16 Agriculture 23.56% $244,532,384 Construction 7.14% $74,060,853 Health Services 7.20% $74,743,849 Banking & Financial Services 3.66% $38,009,124 Floor Plans & Auto Industry 3.65% $37,915,724 Retail Eating Establishments 1.13% $11,694,699 Other Retail + Convenience 4.72% $48,956,055 Transportation
Slide 17: Commercial Production Pipeline
Commercial Production Pipeline Production YTD 6/30/2022 17 Region Pipeline New Money Central $114,343,000 $84,991,000 West $146,679,054 $139,439,045 Southern $83,930,350 $74,899,444 Mid- Central $79,226,256 $47,774,035 Mid-South $247,868,574 $206,558,705 Indy LPO $36,636,196 $36,636,196 Total $708,6
Slide 18: Deposit Mix
18 Deposit Mix Strong Core Deposit Franchise 0.00% 0.18% 0.35% 0.53% 0.70% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 0.19% 0.20% 0.36% 0.56% 0.37% 0.25% 0.17% 0.16% 0.19% 0.25% 0.38% 0.63% Cost of Deposits BHC UBPR Interest Expense '- 0.28 0.55 0.83 1.10 2016 2017 2018 2019 202
Slide 19: Disciplined Expense Management
Disciplined Expense Management 0 30000 60000 90000 120000 2016 2017 2018 2019 2020 2021 2Q22 $62,018 $117,406 $112,758 $104,348 $91,289 $88,747 $90,308 19 45.0 51.0 57.0 63.0 69.0 2016 2017 2018 2019 2020 2021 1Q21 FFC Peer 62.29 60.88 61.22 61.65 61.22 62.21 68.42 60.81 63.33 59.87 61.23 58.43 61.6
Slide 20: Trust and Asset Management
Trust and Asset Management 20 $1.5 Billion Trust Assets Under Management Trust Services include : • Professional Farm Managemen t • Trust Administratio n • Estate Administratio n • Retirement Service s • Corporate Trust Services Trust & Asset Mgmt 2021 YTD 2022 Revenue ($000) 5,256 2.672 Income befo
Slide 21: Key Investment Points
21 Well-positioned for sustainable and profitable growt h • Diversified business model with strong risk management • High-caliber team members focused on customer service and technology optimizatio n • Expanding presence in larger growth market s • Commercial banking focus with quality core deposit
Slide 22: 3-Year Financial Highlights
2019 2020 2021 2Q 2022 Net Interest Income 131,652 146,346 143,401 78,280 Provision 4,700 10,528 2,466 <5,800> Non-interest Income 38,452 42,476 42,084 24,008 Non-interest Expense 104,348 112,758 117,406 62,018 Net Income 48,872 53,844 52,987 36,537 Earnings Per Share (diluted) 3.80 3.93 4.02 2.95 T
Slide 23: Thank You!
Norman L. Lowery Chairman, Chief Executive Officer, President 812.238.6487 / lowerynl@first-online.com Thank You! Rodger A. McHargue Chief Financial Officer, SVP 812.238.6334 / rmchargue@first-online.com Norman D. Lowery Chief Operating Officer, SVP 812.238.6185 / lowerynd@first-online.com Steve Hol
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