First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Investor Day (August 2012)
27 slides from First Financial Bancorp's investor day presentation, Aug 15, 2012
Slide 1: Retail Banking
Retail Banking Jill Wyman & Jill Stanton EVPs & Co-Chief Retail Banking Officers Investor Day August 15, 2012
Slide 2: Retail Summary
Retail Banking Retail Summary: 122 sales centers (1) 153 ATMs $3.6 billion in deposits $1.1 billion in loans 229,000 households served (1) Includes announced locations to be closed/consolidated during the third quarter 2012 2
Slide 3: Retail Banking Strategy and Composition
Retail Banking Overall strategy is a client-centered approach focusing on sales, household and revenue growth while maximizing efficiency and resources through all channels Business unit leadership is divided under the following areas: Banking markets, branch administration, deposits and client serv
Slide 4: Management Structure
Management Structure Jill Wyman Jill Stanton EVP & Co-Chief EVP & Co-Chief Retail Banking Retail Banking Officer Officer Regional Director of Insurance Consumer & Director of Consumer Residential Business RDA Market Client Service Program Mortgage Managers Center Manager Lending Mortgage Banking Ops
Slide 5: Competitive Landscape
Competitive Landscape vs. Large Regional Competitors vs. Smaller Local Competitors Local market-based decision making Greater depth and breadth of product offerings More tailored financial solutions Greater resources and capital Relationship focus Ability to handle new laws and Greater personal atte
Slide 6: Strategic Priorities
Strategic Priorities Capitalizing on competitive advantages to build full client relationships Utilizing competitive intelligence to identify client needs to attract and retain relationships with the appropriate risk and return Share of wallet and household growth as well as client retention in core
Slide 7: Strategic Priorities
Strategic Priorities New prototype is distinctive and unique Focuses on the relationship rather than transactions Evolution to client centered structure Expansion of current markets through new prototype sales center Relocation of key sales centers where appropriate 7
Slide 8: Revenue Growth - Sales
Revenue Growth - Sales Focused on building full client relationships measured through relationship growth, client satisfaction and services per household Household growth and client satisfaction is driven through a daily focus on understanding clients’ needs, cross-sell efforts and sales per banker
Slide 9: Revenue Growth - Sales
Revenue Growth - Sales Execution and structured sales tracking lead to positive results Sales per Banker per Day Cross-Sales(2) per Banker per Day 3.92 3.00 3.39 0.38 (1) (1) Pre-Compass 2Q12 Pre-Compass 2Q12 Services per Household Households per Branch Target Target 3.32 2,009 1,632 1.86 (1) (1) Pr
Slide 10: Revenue Growth - Sales
Revenue Growth - Sales Same Store(1) Sales – Loan Production(2) Same store loan production 32.8% increase has increased 32.8% versus prior year Same store transactional deposit balances have increased 5.5% versus prior 2Q11 2Q12 year Same Store(1) Balances – Transactional Deposits 5.5% increase (1)
Slide 11: Household Product Penetration
Revenue Growth - Sales Household Product Penetration Goal is to earn more of our clients’ relationship across Checking 87% their financial needs and drive greater loyalty Savings 61% Significant revenue growth Loans 37% opportunities exist in credit card, bill pay and mortgage Credit Card 10% Bill P
Slide 12: Revenue Growth - Deposits
Revenue Growth - Deposits Metropolitan market sales centers have the capacity to grow $1.4 billion in deposits under the existing operating structure Sales centers acquired in 2011 provide significant opportunities for cost-effective growth as brand awareness and sales strengths are leveraged. Growt
Slide 13: Revenue Growth - Deposits
Revenue Growth - Deposits Disciplined pricing and focus on more profitable transactional accounts Core transactional deposits have increased 19.0% year-over-year, driven by 2011 acquisitions and organic sales growth Costs of funds has decreased over the last year from 1.06% to 0.69% Single service C
Slide 14: Revenue Growth - Client Service Center
Revenue Growth - Client Service Center New sales referral program introduced April 2012 Component of retail needs-based sales focus Referrals tracked by client service center associates Averaging 5.5 referrals per associate per month in the first three months 41% of referrals result in a sale 14
Slide 15: Efficiency – Sales Centers
Efficiency – Sales Centers Consolidation of sales centers where fewer Retail Operating Expenses / Branch branches can sufficiently serve our clients’ 3.6% decline needs Rationalization of sales centers where growth potential is limited Efficiency rates have improved as we have executed on our branch
Slide 16: Efficiency – Client Service Center
Efficiency – Client Service Center Organization structure places managers closer to clients Specialists respond to clients’ needs Service quality coaches monitor calls and mentor staff Specialized business and online banking support KPIs measured real-time for immediate adjustments 75 71 64 54 5.00%
Slide 17: Retail Lending
Retail Lending $1.1 billion in total loans, including home equity, mortgage, business banking and credit cards Mortgage loan originators located across footprint with concentrations in Cincinnati, Dayton and Indianapolis Business banking sales managers located in sales centers Serving retail househo
Slide 18: Revenue Growth - Residential Mortgage
Revenue Growth - Residential Mortgage Re-entered mortgage in 2009 as the market dynamics changed Initial strategy was originate-and-sell with servicing released As scale has grown, implementing strategy to retain select originations Providing complete product offering that meets the needs for target
Slide 19: Revenue Growth - Residential Mortgage
Revenue Growth - Residential Mortgage Focus is on building out purchase production platform Strategy includes building relationships with realtors and large real estate companies 70% of our originations are purchase transactions Purchase focus results in sustainable revenue source Able to close purc
Slide 20: Revenue Growth - Residential Mortgage
Revenue Growth - Residential Mortgage Mortgage revenue has grown over the last few years as a result of increased focus on business Recently introduced new portfolio product to meet client needs and drive increased sales – First Simplified Loan High credit quality borrowers – FICO of 700 or greater
Slide 21: Revenue Growth - Consumer Lending
Revenue Growth - Consumer Lending Product offerings include HELOC, home equity loans, credit cards and direct installment Integrated branch sales efforts has led to a significant increase in originations Credit cards originated through the retail channel present an opportunity for significant growth
Slide 22: Revenue Growth - Consumer Lending
Revenue Growth - Consumer Lending Opportunities exist to grow portfolios and expand product suite if economic conditions in strategic markets improve Market headwinds include tepid economic recovery with depressed real estate values and consumer de-leveraging Well-positioned when economy recovers Ca
Slide 23: Revenue Growth - Business Banking
Revenue Growth - Business Banking Business banking loans are originated through the retail channel by our Business Banking Sales Managers Low-cost delivery channel Focusing on clients underserved by the larger institutions Maximum relationship size recently increased from $0.5 million to $1 million
Slide 24: Business Banking Performance
Business Banking Performance SBA Lender awards and recognition 2010 Small Business Lender of the Year 2011 top SBA lender in Southwest Ohio by dollar volume Continued opportunities to increase business banking loans through retail Top SBA Lenders - SBA Fiscal Year 2011 channel Southwest Ohio 1 Num b
Slide 25: Retail Lending Credit Quality
Retail Lending Credit Quality Our disciplined credit approach for all retail products has been reflected in the improving credit metrics of originated loans 2012 YTD originations reflect higher balances with stronger credit profile Experienced minimal GSE repurchases since 2009 Demonstrates sound un
Slide 26: Retail Banking – Summary
Retail Banking – Summary Expected Results: Growth in Diverse Revenue Sources & Greater Efficiency Attracting and retaining clients and building market share by focusing on the full relationship and increased client satisfaction Capitalize on position as largest community bank in key metropolitan mar
Slide 27: Biographies
Biographies Jill A. Stanton Executive Vice President & Co-Chief Retail Banking Officer Ms. Stanton joined First Financial in 2008 and has responsibility for product line management for mortgage, consumer lending and small business banking. Prior to joining the company, she served as Senior Vice Pres
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