First Financial Bancorp. · NASDAQ:FFBC
First Financial Bancorp — Q2 2010 Earnings Presentation
34 slides from First Financial Bancorp's earnings presentation, Aug 16, 2010
Slide 1: Investor Presentation Second Quarter 2010
EXHIBIT 99.1 fiRST first financial bancorp Investor Presentation Second Quarter 2010
Slide 2: Forward-Looking Statement Disclosure
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Slide 3: Business & Strategy Review
fiRST first financial bancorp Business & Strategy Review
Slide 4: Executed Strategic Rebuilding and Reorganization Plan in mid-2000s
Executed Strategic (Rebuilding and Reorganization) Pan in mid-20008 je which many aspects of business Well-positioned to endure the challenges restructured Strong operating fundamentals have produced positive results throughout the recessionary period Strong market share in strategic operating marke
Slide 5: Client "Intimate" Strategy
= Client “Intimate” Strategy — Strategic Focus: build long-term relationships with Glens by identifying and meeting their nancial = Four lines of business — Commercial — Retail — Wealth Management — Franchise Finance * Target clients ~ Individuals and small/ mid-size businesses located thin the regi
Slide 6: Low Risk Balance Sheet
fiRST first financial bancorp Low Risk Balance Sheet ‘Stross Case Total Assets by Risk Weighting % "resonance oes tare ageeas ons Marge a of J ‘comes nonsuromng none “ (ota mins) ~ _ 1+ een on Rake fast = 1.93 (Peer Mason? = 1.10%) = 1+ lek Wes acts Tests * 5 105 (Pee Main #76168) _—_—_. (oem tcp 2
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 fo success 7
Slide 8: Selective Acquisitions
fiRST Selective Acquisitions first financial bancorp Future * Supplements organic growth strategy by expanding presence in strategic markets Irwin Continue to evaluat * Transactions met all internal criteria for acquisitions (Fo1c) September 18, 2009 * Developed scalable covered asset and loss share
Slide 9: Acquisition Highlights
Acquisition Highlights Acquisitions provided Uti expansion opportunities in key location: — Added 39 banking centers in strategic operating rkets Solidifies position in key markets and accelerates market expansion strategy by several years 4h lsgent banking center network a icine iso ‘oF 2nd largest
Slide 10: February 2010 follow-on equity offering
= February 2010 follow-on equity offering = Issued 6.4 milion shares at $16.14 per share ‘estimated offering expenses - pany |S, Treasury in Decemiber 2008 under its Capital Purchase Program (CPP) ' June 2009 follow-on equity offering = Issued 13.8 milion shares at $7.50 per share ‘estimated offerin
Slide 11: Second quarter 2010 earnings highlights
. of $17.8 million, or it 76% over the frst quater 2010 eamings per diuted share of $0.17 = Strong quarterly profitability Retum on average assets of 1 — Return on average shareholders’ equity of 10.24% - oF 116%, from $31 2009 . jn increased 10 3.59% 2009, reflecting the higher . first quarter = Ne
Slide 12: Committed to maintaining a strong capital base
‘Committed to maintaining a strong capital base ‘Strong capitalization levels remain among industry leaders and can support sizeable asset growth = Long-term targeted dividend payout range is between 40% and 60% of earnings available to mon shareholders Capital gen ired assets as well as future grow
Slide 13: Recent net interest margin
= Recent net interest margin decline due to increased cash 4.63% bowed 451% poston from net loan pay i owns * Alternatives for redeployment of core cum ctmm Ott liguty margin enhancement 2009 9009, 409 1010 2010 = Overall increased yield on pricing on new loan originations Strong 80 a liquidity prov
Slide 14: Loan Composition
fiRST Loan Composition first financial bancorp Total Loan Portfolio - June 30, 2010 s osu ‘$4.5 billion (esate) % rs = 2 1 . ——> : ox — we omer feta cine nm Sheseue-comecl hel otar-nama steve sae oe ‘Another step on the path fo succass
Slide 15: Uncovered Loans — RE Collateral
fiRST Uncovered Loans — RE Collateral first financial bancorp {aNon-omeraecnied won occured [BAcqusiion & land dtopmont “another step on the path to success. cry
Slide 16: 38.0% of total loans covered under FDIC loss share agreement
38.0% of total loans covered under FDIC loss share agreement . Increased credit costs, while manageable, i down ‘Stress primarily in commercial, construction and CRE portfolios = Will maintain a higher provision expense and reserve until the stress of the current economic cycle, including credit los
Slide 17: Credit Quality Comparison
fiRST Credit Quality Comparison * NPLs/ Loans Reserves / NPLs
Slide 18: Investment portfolio
US. Treasury not sx 23% sw 385 stan 148 2s saoco ns 1310 (hios apen<p) 22 457 oa oe ‘orate 33 ios 1000010028 ° MBSE (agone) 316585 s21% 41 toss 05618 05a wre “415100 05.13 293 Municip 20544 a 719 so13 ton 483 44 150% 31702050258 Teas 703% aa 02 ou Sears 100 CC ACED ‘Wet Uneazed Ganon) S21 948 Pant 7
Slide 19: As of June 30, 2010
As of June 30, 2010 Sector Allocation Credit Quality 883 ire) sows Giese po * otnerincases regulatory stock Inesment Grade = Arad secures ‘ter tnvestnt Grado = at seers ‘Another step on the path fo succass 2
Slide 20: Deposit Activity
fiRST Deposit Activity ‘Change in Balance as of |—_Change in Acquiced- Balance as of March 31, Strategic —Non-Strategic June 30, (Collars in thousends) 2010 Poxtol Portol 010 ‘Transaction and savings accounts $3,088,003 $ © «148,835 $ ©=—(80,325) | $ 3.204.519 Time deposits 1,808,126 5,655 (17.847)
Slide 21: Funding Structure and Cost of Funds
Funding Structure and Cost of Funds Jability Balances End of Period ‘Another step on the path fo succass
Slide 22: Acquisition-Related Items
fiRST first financial bancorp Acquisition-Related Items
Slide 23: Strategic and acquired non-strategic revenue by source
fiRST first financial bancorp * Strategic - Elements ofthe business thet ‘either existed prior tothe acquisitions or ‘were acquired wit the intent to retain and ‘grow. Approximately 81% of total revenue Is derived from strategic businesses, © Acquired-Non-Strategic ~ Elements of the will ot be renew
Slide 24: Deposit and Loan Composition
fiRST Deposi first financial bancorp and Loan Composi Total Deposits = $6.2 billion Gross Loans = $4.5 billion ‘As of June 30, 2010 As of June 30, 2010 (Cots a maton) (ots in maton) strate DacaiedNonSinkene . strat ‘Company’s agreement wth the FDIC. = Acquired-non-strategic loans are primarily in th
Slide 25: Noninterest Income and Expense
fiRST est | and E: first financial bancorp Noninterest Income Impact of ‘Components of Noninterest Expense ‘Accelerated Discount Recognition For the Three Months Ended June 30, 2010, Forthe Three Monts Ended June 30,2010 (Corsa mits) ‘Datos = sta os us 4009 1010 2010 erie bensviinten aime Gea vaon s
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Slide 28: les cng pa ntenien el
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Slide 29: Leadership
fiRST first financial bancorp Leadership
Slide 30: Executive Management
E,DoualasLatterson ive Vice President, Chief Ope WerLatlerson tas spent ns ents creer vara postons ‘th it enc Banco and Fst rancl Bank and was appdired1o Fis current postion in 2008. Prior fois current apporiment, ervedas Chat Financial Oficn fom 2002 tough 2008 ‘J. Franklin Hall Exocuive Vie Presid
Slide 31: Executive Management (continued)
fiRST first financial bancorp Executive Management (continued) Michael Cassani Exezulve Vice President Wealth Resource Group Resource Gu Imanagement apa consling fa he cooundea 1888, Care hs Cae served as tual Funds rod Manager a Fh ‘Thied Bank an as an Institutional Investment Oficer at Roulston an
Slide 32: Executive Management (continued)
fiRST Executive Management (continued) first financial bancorp Lwyman Besa "Vice President, Co-Chiet Retail Banking Officer nancial in 200. Me operating markets. She is also esponsbie for market services and corporate marketing. Pror to joining the company, she spent 19 Years in otal where she serve
Slide 33: Executive Management (continued)
John Borer ies Precidnt, Chief Risk Officer oe Fst Franc 2005 as Regul Fisk Monger. Mc. Sabah nas hen promote Sei Rsk Ofc and Fst Mice brosdot in 2008, luncton which nudes comme'cal apd tal rest. compliance opatnal Marke statege and feplaton ek. Po fon the Company ne wasn he Eterpse Fisk Grou at ih
Slide 34: Another step on the path to success
fiRST first financial bancorp ‘Another step on the path to success
First Financial Bancorp — Q2 2010 Earnings Presentation on 6ix