First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q1 2011 Earnings Presentation
39 slides from First Financial Bancorp's earnings presentation, May 6, 2011
Slide 1: Investor Presentation First Quarter 2011
EXHIBIT 99.1 fiRST first financial bancorp Investor Presentation First Quarter 2011
Slide 2: Forward-Looking Statements Disclosure
fiRST Forward-Looking Statements Disclosure first financial bancorp ‘Sesyslumedimanat seme morn interna (Sisnyserpom ore er rg noe 4 FO Sessentere emer ecru geese yh yt a ni Feasereen apron nro) et sategeg mento paces maha pda a Fe eg ine a 86 ne 4 hype cena echt canines ome ine ‘nother step on the
Slide 3: Business & Strategy Review
fiRST first financial bancorp Business & Strategy Review
Slide 4: Strong operating fundamentals and prudent management
= Strong operating fundamentals and prudent management have resulted in solid performance and profitability throughout the recessionary period — First quarter 2011 ROAA of 1.11% and ROAE of 10.04% — 82 consecutive quarters of profitability Capital levels remain among industry leaders and provide abi
Slide 5: Opportunities to Build Shareholder Value / Risks to be Managed
Opportunities to Build Shareholder Value Risks to be Managed ‘Efficient and prudent use of capital in future periods = Support organic growth in core strategic markets — Dividend policy — Acquisitions that meet internal criteria — Share repurchase plans * Return to “normalized” loan loss provision l
Slide 6: Share repurchase scenario analysis
Ifthe Company's strong capital position cannot fully be deployed supporting organic growth, a sound dividend policy or acquisitions, it will be used to fund share repurchase programs The following analysis highlights the impact various share repurchase scenarios would have had on per share amounts a
Slide 7: Focused Business Strategy
fiRST first fina ial bancorp Client intimate strategy focused on long-term, profitable relationships with clients Strong sales culture that is aggressive in attracting business with the appropriate risk and return Lines of business. — Commercial — Retail — Wealth Management ~ Franchise Finance Targe
Slide 8: Selective Acquisitions
fiRST first financial bancorp Selective Acquisitions Future ‘Supplements organic growth strategy through expansion in strategic markets Transactions met all internal criteria for acquisitions tewin Continue to evaluate Insmarket locations improves operating leverage (DIC) ‘opportunities in this a i
Slide 9: Stress Case
fiRST first financial bancorp Stress Case masts ne srengn of cur baance see assuming a crargecf oat [eau tan uae FOI ss sare agfeonants a atu charged fat ‘reovred on gertrming ns 1+ Nonpamig Assets = $36 ion isk Base Cpe Rao Low Risk Balance Sheet Total Assets by Risk Weighting % ‘As of March 31, 20
Slide 10: Financial Review
fiRST first financial bancorp Financial Review
Slide 11: Quarterly net income of $17.2 million
= Quarterly net income of $17.2 million, or $0.29 per diluted common share = Continued strong profitability — Return on average assets of 1.11% = Retum on risk-weighted assets of 2.07% = Return on average shareholders’ equity of 10.04% = Quarterly net interest margin increased to 4.73% compared to 4
Slide 12: Capital position and dividend
* Primary component of capital is common equity; continues to grow as a result of earnings power = Recently increased the quarterly dividend 20% to $0.12 per share "Strong capitalization levels remain among industry leaders and provides ability to take advantage of strategic opportunities = Long-ter
Slide 13: Net interest margin
Net interest margin continues to be positively impacted by the improved deposit mix towards ‘core transaction and savings accounts © Available liquidity was used during the quarter to purchase ‘over $161 million of agency MBS. Net interest margin also benefited from full quarter's impact of $182 mil
Slide 14: Credit quality trends
= 32.5% of total loans covered under FDIC loss share agreement ® Positive compared to fourth quarter 2010 ation trends as total clas: ied assets and di \quencies both down over 8% = Economic conditions in the Company's markets are stil challenging: real estate loan collateral and OREO valuations wil
Slide 15: Deposit and Loan Composition
fiRST first financial bancorp Deposit and Loan Composition Total Deposits = $5.2 billion Gross Loans = $4.1 billion As of March 31, 2011 ‘As of March 31, 2011 (Dotan ions) sictgic Acquired Non Strategic Wester market and Michigan and Louisville, KY branch exits are complete; acquired-non-strategic d
Slide 16: Noninterest Income and Expense
fiRST first financial bancorp Noninterest Income and Expense ‘Components of Noninterest Income ‘Components of Noninterest Expense For the Three Months Ended March 31, 2011 For the Three Months Ended March 31, 2011 (oars in ton) (ota in mito) statgie asiatege [BFDIC Less Sharing Income mAcqutedren st
Slide 17: Acquisition-Related Items
fiRST first financial bancorp Acquisition-Related Items
Slide 18: Pre-provision income and accelerated discount
Prot preprovionimcome’ «$8788 $= MNBL S| RBS TRIG S128 ‘Acclarated dicount on acquced ‘oane ites 6 Loan sae 3.085 . 382 . agor Prepayments 2598 e103 086 108 a7 Total accelerated dscount 5783 6118 sate 708 6098 Ps: oss on covered OREO? 3412 . . . . Less gain on sais of non morgage ‘oans “ 20m - - Ps:
Slide 19: Acquired loans cash flow revaluation
= The majority of the loans acquired as part of the FDIC-assisted transactions are accounted for under ASC Topic 310-30 which requires the Company to periodically update its forecast of expected cash flows from these loans. = Asa result of valuation procedures performed during the first quarter 2011
Slide 20: Net impairment and FDIC loss share income
For the three months ended March 31, 2011 Dosen tousande Net impairment for period ‘$16,062. ———> Reduction in expected cash flows related to certain loan pools net of prior period impairment recapture Net charge-offs 10,954 ——> Represents actual, unexpected net charge-offs of acquired loans during
Slide 21: Comparison of Financial Impact
fiRST first financial bancorp Comparison of Financial Impact The tables present a comparison of the impact on diluted eamings per share under various scenarios Extreme Cases Best Estimate + tal acquted loans weet prepay immedataly, luted EPS would bene by $1.55 per only ASC Topi 30:20 loans ware to
Slide 22: Appendix
fiRST first financial bancorp Appendix
Slide 23: Loan Composition
fiRST Loan Composition first ancial bancorp = Strategic portfolio: no significant industry concentrations; geography distributed throughout footprint * In-house lending limit of $15 milion — significantly below legal imit = Average and quarter-end uncovered loan balances were essentially unchanged r
Slide 24: Uncovered Loans — RE Collateral
fiRST Uncovered Loans — RE Collateral first financial bancorp * Construction and acquisition and land development loans represent small portion of overall portfolio * Commercial real estate and constructions loans located primarily in Ohio and Indiana markets $2.8 Billion <——> Res ette-cominetion af
Slide 25: Reduction in Balance of Covered Loans
Redaction in Balance veto: coronas EE EE a SD ES : 188 wae strom 5 s faci on : = 2378) : . ae Reales -conmerea! essr5 usar pais 6370 sen so 7023128 Reale resent 17082 7 7 ot 68 : 0258 ‘nse aan 1489 ss 2 “ 19008 Home eauty 73605 : 2a 32) 168 : ra.28 tae covered ane 7368 . 1328 . 6008 Toa eoveaioans T
Slide 26: Segment definitions: Strategic, Acquired-Non-Strategic
fiRST first financial bancorp Strategic ~ Elements of the business that either ‘existed prior fo the acquisitions or were acquired with the intent to retain and grow. On a reported basis, ‘approximately 68% of total revenue is derived from Strategic businesses. Not including the FDIC loss sharing in
Slide 27: Funding Structure and Cost of Funds
fiRST Funding Structure and Cost of Funds first financial bancorp Average Interest Bearing Liability Balances --—_End of Period Deposit Composition “otal Costot Funds Total Como oposite laroreenettnwng dents aioeatbeng dono ‘Another step on the path to success W
Slide 28: Deposit Activity
fiRST Deposit Activity first financial bancorp posit Activity - First (Collars in thousands) ‘Transaction and savings accounts $ 3.351406 $ 249434 § (85,884) $3,514,956, Time deposits 1,662,341 (47,119) (25,214) 1,890,008 Brokered deposits 132,502 (1,433) (18,783) 112,286 Total deposits 3 56249 SS _
Slide 29: Credit Quality Comparison
fiRST first financial bancorp Credit Quality Comparison *
Slide 30: Investment portfolio
coro Ee El Ee ee ee ese US. Treasury notes s 13650 12% wise $230 Agencies 105.385 3am 276 10000100 a8 358 (COs (agency) 53014 02%, 178 = too72—tora7 1583 (COs (pat) 20 0% 03 = 0001002 2 MBS (ageney) 402475 3558 38222 10k 10878 Tare ses Ea ee Tor23 10257 12,625 Manigat 16528 15% 128 92810096 29 Otter
Slide 31: Sector Allocation and Credit Quality
As of March 31, 2011 Sector Allocation Credit Quality owes ” rastnet Ge we Otc hesinet Investment Grade =A ated secures ‘te nvestnent Grade = 8 rated secon * Other consists primary of regulatory sock ‘nother step on the path to success 3
Slide 32: sinsmreageesnce ws
sinsmreageesnce ws comioncenenenramsemgemn a “Saimnaweiocs ed ans SS ‘nother step on the path to success
Slide 33: Noninterest Income Noninterest Expense
Noninterest Income Noninterest Expense ‘nother step on the path to success ey
Slide 34: Leadership
fiRST first financial bancorp Leadership
Slide 35: Claude Davis, Douglas Lefferson
Claude. Davis President & Chief Executive Officer [Me Daws joned Fist nancial in 2004 as President, Chief Execute Officer and a member ofthe Board of Directors. Mr Davis aso Serves as Chatman of the Boar of Directors of Fist nancial Bank. Porto joning the company, he served as Senior Vice President
Slide 36: Executive Management (continued)
fiRST Executive Management (continued) first financial bancorp Michael Cassani Executive Vice President, First Financial Wealth Management Iie Casean joined First Financial in 2007 as Senor Vice Pendent and Chief Adminstrave Officer fo oversee the company’s wealth management goup, rar cong he compan
Slide 37: Executive Management (continued)
fiRST first financial bancorp Executive Management (continued) sl. Wyman Executive Vice President, Co-Chiet Retall Banking Officer {is Viyman joined First Financial n'2008 as Vice President and Sales Dector. In er current poston, Ms, Wyman has responsiity for leading the etal sales process, groving
Slide 38: John Sabath
John Sabath ‘Senior Vice President, Chet Risk Officer {Me Sabath joined First Financial in 2005 as Regulatory Risk Manager, Mr, Sabath was then promoted to Senior Risk Officer and Fist ‘ice President and assumed his cuent positon in 2008. He is responsible for management ofthe Companys risk manageme
Slide 39: Another step on the path to success
fiRST first financial bancorp ‘Another step on the path to success
First Financial Bancorp — Q1 2011 Earnings Presentation on 6ix