investor presentation
- First Quarter 2024
forward looking statements disclosure
Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.
As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:
- economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;
- future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses;
-
the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer
Protection Act and other legislation and regulation relating to the banking industry; (iv) management's ability to effectively execute its business plans; - mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;
- the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;
- the effect of changes in accounting policies and practices;
- changes in consumer spending, borrowing and saving and changes in unemployment;
- changes in customers' performance and creditworthiness;
- the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
- current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
-
the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the
Coronavirus disease 2019 ("COVID-19"), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; - our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
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forward looking statements disclosure
- financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
- the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
- the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
- a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
- the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
- our ability to develop and execute effective business plans and strategies.
Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2023, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.
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presentation contents
About First Financial Bancorp
Financial Performance
Appendix
4
overview
$17.6B | NASDAQ: FFBC | ||||||||
in assets | Headquarters: Cincinnati, Ohio | ||||||||
Founded: 1863 | |||||||||
$11.2B/$13.5B | |||||||||
loans / deposits | Banking Centers: 130 | ||||||||
Employees: 2,116 | |||||||||
$5.2B | |||||||||
Market Cap | : $2.1B | ||||||||
wealth management (1) | (3/31/24) | ||||||||
Dividend Yield (3/31/24): 4.1% | |||||||||
1.85% | |||||||||
CET1 Ratio: 11.67% | |||||||||
1Q Adj. PTPP ROAA(2) | |||||||||
Lines of Business | |||||||||
Commercial | Wealth Management / Affluent | ||||||||
C&I, O-CRE, Treasury, | Banking | ||||||||
ABL, ESOP, Equipment Finance, | |||||||||
Bannockburn Global Forex | Investment Commercial | ||||||||
Retail Banking | Real Estate | ||||||||
Consumer, Small Business | Commercial Finance | ||||||||
Mortgage Banking | |||||||||
Oak Street Funding / Franchise | |||||||||
Summit Funding Group | |||||||||
Agile Premium Finance |
1 Includes brokerage assets under care.
2 Non-GAAP financial measure which management believes facilitates a better understanding of the
Company's financial condition. See Appendix for Non-GAAP reconciliation.
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key investment highlights
- Proven & sustainable business model spanning 160 years
- Premier Midwest franchise with top quartile performance
- Consistent profitability - 134 consecutive quarters
- High quality balance sheet & robust capital position (11.67% CET1)
- Prudent risk management & credit culture with strong asset quality
- Well managed through past credit cycles
- What makes us strategically distinct
- Local banking centered in legacy markets with a focus on growing core deposits
- Sophisticated commercial and wealth banking model that positions us to be the alternative to "Big Banks"
- National strategy that adds diverse fee streams and incremental earning assets while also complementing our Commercial Bank offerings
- Experienced and proven management team
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consistent best-in-class earnings
Return on Average Assets
1 | ||
KRX Top Quartile | ||
1-Year | 1.38% | 1.17% |
84% Percentile Rank | ||
3-Year | 1.37% | 1.27% |
87% Percentile Rank | ||
2Q18-1Q24 | 1.30% | 1.29% |
(since merger) | 78% Percentile Rank |
1 KRX calculated as the top quartile of the current 50 KRX constituents.
Source: S&P Capital IQ Pro
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consistent better than market earnings growth
Earnings Per Share Growth
KRX Median1 | |||
1-Year | -5% | -14% | |
71% Percentile Rank | |||
3-Year | 6% | -3% | |
76% Percentile Rank | |||
5-Year | 6% | 3% | |
64% Percentile Rank | |||
10-Year | 4% | 4% | |
48% Percentile Rank | |||
20-Year | 5% | 3% | |
67% Percentile Rank |
1 KRX calculated as the median of the current 50 KRX constituents.
Source: S&P Capital IQ Pro
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complementary market centric strategies
Loans $3.3B / Deposits $2.9B Loans $1.8B / Deposits $5.2B Loans $4.0B / Deposits $5.1B Loans $2.2B / Deposits $0.2B
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Note: Headquarters loan and deposit balances include special assets, loan marks, and other out of market and corporately held balances. Loan balances exclude PPP balances.
key company brands
Diversified financial holding company with comprehensive and innovative solutions for individuals and
businesses
Full suite of
diversified financial
products for
individuals and
businesses
$17.6 Billion
Assets
$13.5 Billion
Deposits
19.11%
Adjusted MRQ
ROATCE
Wealth & asset | Foreign currency |
management | advisory, hedge |
services for | analytics, and |
individuals and | transaction |
businesses | processing for |
closely held | |
enterprises |
$5.2 Billion | 9 Offices |
Assets Under Care | Across the U.S. |
$26.4 Million | $47.6 Million |
LTM Revenue | LTM Revenue |
$312 Million | |
LTM Wealth Advisory | 2,000+ |
Sales | |
~8,600 | Clients |
Relationships |
first commercial finance
Specialty lender to insurance industry, RIAs, CPAs, indirect auto finance companies, and quick- serve restaurant franchisees
$1.0 Billion
Loans
~8%
YoY Loan Growth
Full-service
equipment financing
company
$0.8 Billion
Leases/Loans
$500+ Million
2023 Originations
4th
Largest Independent
U.S. Equipment
Finance Platform At
Acquisition
High Yielding Portfolio
Specialty lender for
commercial
customers to finance insurance premiums
$119 Million
Loans
~$400+ Million
2024 Estimated
Originations
High Yielding and High
Quality Portfolio
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Disclaimer
First Financial Bancorp published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 21:08:29 UTC.