8-K
FIRST FINANCIAL CORP /IN/ (THFF)
8-K
2024-01-31
For: 2024-01-31
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April 04, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 31, 2024
FIRST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number: 0-16759
| Indiana | 35-1546989 | |
|---|---|---|
| (State or other jurisdiction | (I.R.S. Employer | |
| incorporation or organization) | Identification No.) | |
| | | |
| One First Financial Plaza, Terre Haute, IN | 47807 | |
| (Address of principal executive office) | (Zip Code) | |
| | | |
| (812) 238-6000 | | |
| (Registrant's telephone number, including area code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
**☐**Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
**☐**Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
**☐**Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | | Trading Symbol | | Name of each exchange on which registered |
|---|---|---|---|---|
| Common Stock, par value $0.125 per share | | THFF | | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
Norman D. Lowery, President and Chief Executive Officer, Rodger A. McHargue, Senior Vice President and Chief Financial Officer, and Steve Panagouleas, Central Credit Administration Manager, of First Financial Corporation, Inc. will participate in the Janney CEO Forum being held January 31 – February 1, 2024, by hosting a series of meetings with investors on February 1, 2024.
Attached as Exhibit 99.1 is the information that will be provided to meeting participants. Such information is incorporated herein by reference.
The foregoing information is being furnished pursuant to this Item 7.01 and shall not be deemed to be “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed to be incorporated by reference into any of the Registrant’s filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01. Financial Statements and Exhibits
The exhibit to this report is as follows:
| Exhibit Number | | |
|---|---|---|
| | | |
| 99.1 | | First Financial Corporation, Inc. Presentation dated January 31, 2024. |
| 104 | | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | First Financial Corporation |
|---|---|
| | |
| Dated January 31, 2024 | |
| | /s/ Rodger A. McHargue |
| | Rodger A. McHargue |
| | Secretary/Treasurer and Chief Financial Officer |
Exhibit 99.1
| 1<br>: THFF | |||
|---|---|---|---|
| Forward-looking Information<br>This presentation contains future oral and written statements of the Company and its management, forward-looking statements within the meaning of the<br>Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and<br>business of the Company. Forward-looking statements are generally identifiable by the use of words such as “believe”, “expect”, “anticipate”, “estimate”,<br>“could”, and other similar expressions. All statements in this presentation, including forward-looking statements, speak only as of today’s date, and the<br>Company undertakes no obligation to update any statement in light of new information or future events.<br>A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its<br>forward-looking statements. Additional information is included in the Company’s filings with the Securities and Exchange Commission.<br>Factors that could have a material adverse effect on the Company’s financial condition, results of operations and future prospects can be found in the “Risk<br>Factors” section in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and elsewhere in the Company’s periodic and current<br>reports filed with the Securities and Exchange Commission.<br>These factors include, but are not limited to, the effects of future economic, business and market conditions and changes, domestic and foreign, including<br>competition, governmental policies and seasonality; legislative and regulatory changes, including changes in banking, securities and tax laws and regulations<br>and their application by Company regulators, and changes in the scope and cost of FDIC insurance and other coverages; the risks of changes in interest<br>rates on the levels, composition and costs of deposits, loan demand and other interest sensitive assets and liabilities; the failure of assumptions and<br>estimates underlying the establishment of reserves for possible loan losses, analysis of capital needs and other estimates; changes in borrowers’ credit risks<br>and payment behaviors; and changes in the availability and cost of credit and capital.<br>2 | |||
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| Norman D. Lowery<br>President & Chief Executive Officer<br>Rodger A. McHargue<br>Chief Financial Officer, SVP<br>Stephen P. Panagouleas<br>Central Credit Administration Manager<br>3 | |||
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| First Financial Corporation<br>Indiana’s first multi-bank holding company<br>Established 1984<br>76 Locations<br>70 full-service banking centers<br>6 loan production offices<br>$4.9 Billion in Assets<br>December 31, 2023<br>$1.8 Billion<br>Trust and Assets Under Management<br>First Financial Bank<br>Primary subsidiary founded in 1834<br>Oldest national bank in Indiana<br>5th oldest national bank in the U.S.<br>Terre Haute, Indiana<br>Headquarters<br>Illinois<br>26 Banking Centers<br>Indiana<br>22 Banking Centers<br>4 Loan Offices<br>Kentucky<br>16 Banking Centers<br>Tennessee<br>6 Banking Centers<br>2 Loan Offices<br>4 | |||
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| Our Vision<br>To enhance our clients’ abilities to spend, save, borrow and invest.<br>Our Mission<br>To deliver financial solutions that are simple, fast and easy.<br>Our Values<br>We build strong relationships and treat each other with dignity and respect.<br>We embrace the diversity of our customers and co-workers.<br>We apply the highest standards of excellence to everything we do.<br>We work as a team to deliver world-class customer service.<br>We get involved in our communities.<br>We recognize profitability is essential to our future success.<br>Best Bank<br>Tribune-Star Readers’ Choice &<br>Cheatham County Main Street Awards<br>One of America’s<br>Best Banks<br>Top 100 Publicly<br>Traded U.S. Bank<br>Bank Director Magazine<br>5<br>5-Star Rating<br>Bauer Financial | |||
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| TBV<br>$0.00<br>$10.00<br>$20.00<br>$30.00<br>$40.00<br>$50.00<br>2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023<br>10 YR CAGR 4.37%<br>Strong Capital<br>Key Capital Ratios and<br>Per Share Data<br>As of December 31, 2023 0.00%<br>3.50%<br>7.00%<br>10.50%<br>14.00%<br>17.50%<br>2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023<br>TCE<br>Total Risk Based 15.79%<br>Tier 1 Risk Based 14.75%<br>Tier 1 Leverage 12.14%<br>Book Value $44.64<br>Tangible Book Value $36.80<br>6 | |||
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| 2.37 2.55<br>2.35<br>3.12<br>2.38<br>3.80 3.80 3.93 4.02<br>5.82<br>5.08<br>0.96 0.97 0.98 0.99<br>2.50<br>1.02 1.02 1.04 1.06 1.17 1.28<br> '-<br> 1.50<br> 3.00<br> 4.50<br> 6.00<br> 7.50<br>2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023<br>Earnings and Dividends Per Share<br> EPS Dividends Paid<br>10 YR CAGR 2013 - 2023<br>EPS 11.43%<br>Dividends 3.33%<br>History of Earnings and Dividend Growth<br>7 | |||
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| Announced Repurchase<br>Amount Shares Amount Completed<br>April 21, 2022 10% 1,243,531 In Progress **<br>July 21, 2021 5% 652,411 $28,335,713 3/4/22<br>October 29, 2020 5% 685,726 $29,300,476 6/25/21<br>February 3, 2016 5% 637,500 $21,677,750 11/30/20<br>August 25, 2014 5% 667,700 $21,627,262 8/19/15<br>**As of 12/31/2023 purchased 724,671 for $29,132,283. 518,860 shares remain.<br>History of Shares Repurchases<br>8 | |||
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| FFIEC BHC UBPR Data<br>• Centralized committee structure<br>• We are an in-market lender to clients<br>• Disciplined underwriting<br>Net Charge-offs<br>0.08%<br>0.06% 0.05%<br>0.07% 0.06%<br>0.00%<br>0.04%<br>0.08%<br>0.11%<br>0.15%<br> '-<br> 800<br> 1,600<br> 2,400<br> 3,200<br>4Q22 1Q23 2Q23 3Q23 4Q23<br> Dollar ($000) % Total Loans<br>1.46%<br>1.29% 1.29% 1.28% 1.26%<br>1.13%<br>1.25%<br>1.38%<br>1.50%<br> 38,500<br> 38,750<br> 39,000<br> 39,250<br> 39,500<br> 39,750<br> 40,000<br>4Q22 1Q23 2Q23 3Q23 4Q23<br>Amount ($000) % Total Loans<br>Reserves / Loans<br>Non-Performing Assets<br>NPA ($000) Total NPAS/<br>Loans<br>4Q22 12,923 0.42%<br>1Q23 15,327 0.50%<br>2Q23 16,302 0.52%<br>3Q23 15,671 0.40%<br>4Q23 24,556 0.78%<br>Strong Asset Quality<br>9 | |||
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| FFIEC BHC UBPR Data<br>Return on Assets<br>1.61<br>1.22 1.32<br>1.12 1.00<br>0.88 0.93 0.77<br>0.91 0.93 0.9 0.9 0.98 0.94<br>0.79 0.71<br> '-<br>2016 2017 2018 2019 2020 2021 2022 3Q23<br>FFC Peer<br>Non-interest Income % Avg Assets<br>FFIEC BHC UBPR Data<br>1.30<br>0.98<br>1.56<br>1.42<br>1.25<br>1.10<br>1.41 1.32<br>0.92 0.95<br>1.22 1.19<br>0.97<br>1.25 1.17 1.09<br> '-<br>2016 2017 2018 2019 2020 2021 2022 3Q23<br>FFC Peer<br>Better than Peer Performance<br>10 | |||
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| Net Interest Income<br>Loan Growth Driving Growth in Income<br>107,857 116,579<br>131,652<br>146,346 143,401<br>165,042 167,262<br>4.11<br>4.32 4.25<br>4.05<br>3.2<br>3.55<br>3.78<br> 2.00<br> 3.00<br> 4.00<br> 5.00<br> 6.00<br> '-<br> 42,500<br> 85,000<br> 127,500<br> 170,000<br> 212,500<br>2017 2018 2019 2020 2021 2022 2023<br>12.37% CAGR NII NIM<br>$’s in (000’s)<br>11 | |||
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| Loan Portfolio Balance ($000) Commercial Loans By State<br>Total $3,159,667<br>Loan Portfolio ($000) Balance Percent<br>Commercial $2,123,093 67.19%<br>Consumer $772,180 24.44%<br>Residential $264,394 8.37%<br>Total $3,159,667 100%<br>IN<br>43%<br>IL<br>11%<br>KY<br>7%<br>TN<br>14%<br>Other<br>25%<br>Commercial<br>67.19%<br>Consumer<br>24.44%<br>Residential<br>8.37%<br>Commercial<br>$2,123,093<br>Consumer<br>$772,180<br>Residential<br>$264,394<br>IN<br>44%<br>IL<br>9% KY<br>7%<br>TN<br>14%<br>Other<br>26%<br>Diversified Loan Portfolio<br>12 | |||
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| Total Loans $772,180,323<br>98.7% Secured Consumer Loans<br>65% ≥ 701 FICO<br>20% ≥ 651 to 700<br>12% ≥ 600 to 650<br>3% < 600 (Includes No Score)<br>68.67% Indirect Auto ($531,447,014)<br>13.6% New ($72,997,796)<br>86.4% Used ($458,449,218)<br>Asset Quality<br>30 – 89 day YTD Average<br>Past Due 1.887%<br>$122,086,399<br>HELOC<br>15.81%<br>$97,381,293<br>Direct Auto<br>12.61%<br>$531,447,014<br>Indirect Auto<br>68.82%<br>$16,342,333<br>Other<br>2.12%<br>$4,923,283<br>Credit Card<br>0.64%<br>Consumer Loan Portfolio<br>13 | |||
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| Total Loans $264,393,582<br>52.27% YTD Production Sold<br>• Average New Production LTV 81.29%<br>• Average New Production FICO 722<br>• Primarily in-market lender<br>Portfolio<br>• Underwritten to FHLMC Guidelines<br>• Average credit score 726<br>• Average DTI 30%<br>• Average Amortized LTV 65.8%<br>• Updated LTV 49.7%<br>Asset Quality<br>• YTD average past due 1.48%<br>$165,765,278<br>$95,019,127<br>Mortgage Loan Portfolio<br>14<br>Fixed<br>35.37%<br>$95,019,127<br>Adjustable<br>64.63%<br>$165,765,278 | |||
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| Residential/Multi- Family<br>38.92%<br>Commercial Income<br>Property NOO Retail/Restaurants<br>10.00% 24.49%<br>Hotels and Motels 6.27%<br>Owner Occupied CRE 7.13%<br>Residential & Non-Residential<br>Property Managers 4.62%<br>Lessors of Other Real Estate<br>Property 5.89%<br>Mini-warehouses/Self Storage 1.34%<br>Single Family<br>Housing/Subdivisions<br>0.80%<br>Land Development 0.54%<br>Total Commercial<br>Real Estate Loans<br>Commercial Real Estate Loan Mix<br>As a % of CRE<br>15<br>Residential/Multi-family $417,312,727<br>Commercial Income Property $262,547,397<br>NOO Retail $107,227,283<br>Owner Occupied CRE $76,461,121<br>Hotel/Motel $67,265,661<br>Lessors of Other Real<br>Estate Property $63,125,133<br>Residential & Non-Residential<br>Property Management $49,571,813<br>Mini-warehouse/Self-Storage $14,378,542<br>Single Family Housing $8,564,125<br>Land Development $5,758,872<br>Total $1,072,212,674 | |||
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| Agriculture 25.162%<br>Construction<br>6.134%<br>Health Services<br>6.559%<br>Banking & Financial Services<br>4.011%<br>Floor Plan & Auto Industry<br>4.013%<br>Retail Eating Establishments<br>0.980%<br>Other Retail+Convenience<br>5.003%<br>Transportation 4.774%<br>Manufacturing 2.454%<br>Personal Services 10.122%<br>Government Entities 7.838%<br>Schools 1.930%<br>Forestry, Oil/Gas & Energy 2.990%<br>Religious Organizations 1.220%<br>Amusement & Recreation 1.647%<br>Wholesale Distribution 2.125%<br>All Other 13.037%<br>Commercial & Industrial Loan Mix<br>As a % of Total C & I Loans<br>Agriculture 25.162% $264,426,522<br>Personal Services 10.122% $106,366,027<br>Government Entities 7.838% $82,369,763<br>Health Services 6.559% $68,922,326<br>Construction 6.134% $64,459,691<br>Other Retail + Convenience 5.003% $52,580,632<br>Transportation 4.774% $50,171,081<br>Floor Plans & Auto Industry 4.013% $42,176,516<br>Banking & Financial Services 4.011% $42,146,267<br>Forestry, Oil, Gas & Energy 2.990% $31,426,030<br>Manufacturing 2.454% $25,786,801<br>Wholesale Distribution 2.125% $22,326,518<br>Schools 1.930% $20,286,074<br>Amusement & Recreation 1.647% $17,311,972<br>Religious Organizations 1.220% $12,820,737<br>Retail Eating Establishments 0.980% $10,298,606<br>All Other 13.037% $137,004,649<br>Total 100.000% $1,050,880,212<br>16 | |||
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| Commercial Production Pipeline<br>As of December 31, 2023<br>Production YTD<br>REGION Pipeline New Money<br>Central $177,370,000 $111,451,000<br>West $215,150,000 $108,237,000<br>Southern $139,200,000 $126,616,000<br>Mid-South $238,225,000 $152,079,000<br>Indy/ Ft.<br>Wayne LPO $134,482,000 $90,225,000<br>Total $904,427,000 $588,608,000<br>Current Pipeline<br>Dollars<br>REGION<br>Term<br>Production<br>Line<br>Production<br>Central $70,202,916 $10,803,000<br>West $57,800,736 $2,763,279<br>Southern $63,463,264 $32,963,895<br>Mid-South $83,617,574 $31,862,405<br>Indy/ Ft.<br>Wayne LPO $77,04,488 $16,606,498<br>Total $352,388,978 $94,999,077<br>REGION Pipeline $<br>Terre Haute Market Area $37,078,000<br>Champaign, IL MSA<br>Bloomington, IL MSA $37,782,000<br>Vincennes Market Area $90,840,000<br>Clarksville, TN / Nashville,<br>TN / Murfreesboro, TN $101,224,000<br>Central Indiana / Indpls.<br>MSA $196,094,000<br>All Other Markets $125,590,000<br>Total $588,608,000<br>Current New Money<br>Pipeline By Location<br>17 | |||
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| Strong Core Deposit Franchise<br>Deposit Mix<br>0.63%<br>0.38%<br>0.25%<br>0.19%0.16%0.17%<br>0.25%<br>0.37%<br>0.56%<br>0.36%<br>0.20%<br>0.38%<br>1.26%<br>0.00%<br>0.45%<br>0.90%<br>1.35%<br>2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023<br>Cost of Deposits<br>0.16 0.23 0.32 0.50 0.32 0.18 0.36 0.85<br>0.45 0.54<br>0.75<br>0.95<br>0.54<br>0.20<br>0.44<br>1.24<br> '-<br> 0.40<br> 0.80<br> 1.20<br> 1.60<br>2016 2017 2018 2019 2020 2021 2022 3Q23<br>YTD<br>BHC UBPR Interest Expense<br>FFC Peer<br>FFIEC BHC UBPR Data<br>Non-interest<br>bearing<br>Demand &<br>Savings<br>Time<br>69.1%<br>18.1%<br>12.8<br>Brokered CDs,<br>0.0%<br>Average account tenure 13.4 years<br>Estimated uninsured deposits as 41.3% of total deposits<br>Estimated uninsured less collateralized as 22.7% total deposits<br>Cycle to date deposit beta 28.7%<br>18 | |||
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| $90,308 $88,747 $91,289<br>$104,348<br>$112,758 $117,406<br>$126,023 $130,176<br>0<br>32500<br>65000<br>97500<br>130000<br>162500<br>2016 2017 2018 2019 2020 2021 2022 2023<br>59.4<br>61.62<br>58.43<br>61.23 59.87<br>63.33<br>59.51 60.18<br>68.42<br>62.21<br>61.22 61.65 61.22 60.88<br>59.84<br>61.96<br>45.0<br>51.0<br>57.0<br>63.0<br>69.0<br>75.0<br>2016 2017 2018 2019 2020 2021 2022 3Q23<br>FFC Peer FFIEC BHC UBPR Data<br>Non-interest Expense Efficiency<br>Acquired HopFed Bancorp on 7/27/2019<br>Acquired Hancock Bancorp on 11/5/2021<br>Disciplined Expense Management<br>19 | |||
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| $1.8 Billion Trust Assets<br>Under Management<br>Trust & Asset<br>Management 2022 2023<br>Revenue ($000) 5,155 5,155<br>Income before Tax 1,586 1,258<br>Trust and Asset Management<br>20<br>Trust Services include:<br>• Professional Farm Management<br>• Trust Administration<br>• Estate Administration<br>• Retirement Services<br>• Corporate Trust Services | |||
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| Well-positioned for sustainable and profitable growth<br>• Diversified business model with strong risk management<br>• High-caliber team members focused on customer service and<br>technology optimization<br>• Expanding presence in larger growth markets<br>• Commercial banking focus with quality core deposits<br>• Demonstrated ability to successfully complete mergers and<br>acquisitions<br>• Unblemished track record of delivering shareholder value<br>• Over 30 consecutive years of increased shareholder dividends<br>Key Investment Points<br>21 | |||
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| 2020 2021 2022 2023<br>Net Interest Income 146,346 143,401 165,042 167,262<br>Provision 10,528 2,466 <2,025> 7,295<br>Non-interest Income 42,476 42,084 46,716 42,702<br>Non-interest Expense 112,758 117,406 126,023 130,176<br>Net Income 53,844 52,987 71,109 60,672<br>Earnings Per Share (diluted) 3.93 4.02 5.82 5.08<br>Total Assets 4,557,544 5,175,099 4,989,281 4,851,614<br>Net Interest Margin 4.05 3.20 3.54 3.78<br>Return on Average Assets 1.25 1.10 1.41 1.26<br>Return on Average Equity 9.07 8.87 14.37 12.47<br>Dollars in millions except per share data<br>3-Year Financial Highlights<br>22 | |||
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| Appendix A<br>23 | |||
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| t<br>Financial Highlights(1)<br>Market Overview(2)<br>Knoxville, TN (MSA)<br>Cleveland, TN (MSA)<br>Meigs, TN (County)<br>Dayton, TN (MSA)<br>Chattanooga, TN-GA (MSA)<br>Simply (13)<br>SimplyBank Overview<br>24<br>($000s) 2022Y 2023Q1 2023Q2 2023Q3<br>Balance Sheet<br>Total As s ets 692,789 693,962 699,227 701,819<br>Total Loans HFI 544,059 529,467 533,233 526,192<br>Total Depos its 608,390 610,722 610,985 619,604<br>Total Equity 57,777 61,214 60,951 55,439<br>Loans / Depos its (%) 89 87 87 85<br>Profitability<br>S -Corp. Adj. Net Income 5,206 1,491 4,129 782<br>S -Corp. Adj. ROAA (%) 0.81 0.93 2.46 0.52<br>S -Corp. Adj. ROAE (%) 10.06 11.04 28.00 6.39<br>Yield on Loans (%) 5.25 5.56 6.46 5.95<br>Cos t of Funds (%) 0.23 0.62 0.94 1.35<br>Net Interes t Margin (%) 4.30 4.44 4.88 4.11<br>Efficiency Ratio (%) 75 74 58 84<br>2022Y 2023Q1 2023Q2 2023Q3<br>Market 2023 '23 - '28 Proj.<br>Rank Branches Deposits Pop. Pop. Change(3)<br>MSA / County (#) (#) ($MM) (#) (%)<br>Dayton, TN 1 3 $346.3 33,251 2.5<br>Chattanooga, TN-GA 8 5 150.5 571,925 3.2<br>Knoxville, TN 18 2 102.7 902,174 4.1<br>Cleveland, TN 7 2 47.6 129,332 4.2<br>Meigs , TN 2 1 11.5 13,193 4.8<br>Total 13 $658.5 1,649,875 3.1<br>MSA/County<br>Market<br>Rank<br>(#)<br>Branches<br>(#)<br>Deposits<br>($MM)<br>2023<br>Pop.<br>(#)<br>’23 – ’28 Proj.<br>Pop. Change(3)<br>(%) | |||
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| Including<br>AOCI & Rate Marks<br>Excluding<br>AOCI & Rate Marks(2)<br>Pro Forma Capital Ratios at Close<br>TBV Acc. /<br>(Dil.)<br>TBV Earnback<br>’25E EPS Acc.<br>TBV Acc. /<br>(Dil.)<br>TBV Earnback<br>’25E EPS Acc.<br>TCE<br>Leverage<br>CET1<br>Tier 1<br>Total Capital<br>TCE<br>Leverage<br>CET1<br>Tier 1<br>Total Capital<br>(13.6)%<br>3.0 years<br>32.1%<br>(5.0)%<br>2.1 years<br>14.6%<br>6.4%<br>9.5%<br>11.9%<br>11.9%<br>13.0%<br>7.0%<br>10.0%<br>12.6%<br>12.6%<br>13.7%<br>Structure SimplyBank to be merged into First Financial Bank, N.A.<br>Pricing & Consideration<br>Aggregate cash consideration of $73.4 million<br>100% cash consideration<br>Termination fee of $2.9 million<br>Management Key personnel are anticipated to be retained in the pro<br>forma company<br>Approvals &<br>Expected Close<br>Customary closing conditions, including, but not limited<br>to approval of Simply shareholders and receipt of<br>regulatory approval<br>Expected close in the 2nd quarter of 2024<br>Transaction<br>Assumptions<br>36.7% cost savings<br>$11.9mm AOCI mark; $32.8mm interest rate mark;<br>$10.2mm credit mark; $2.0mm mark-up on fixed assets;<br>$1.0mm time deposit mark; $0.03mm mark on FHLB<br>borrowings<br>Transaction Multiples(1) DV / TBV | 132%<br>DV / LTM EPS | 12.4x<br>DV / TBV Excl. AOCI | 105%<br>Transaction Terms & Key Assumptions Expected Financial Impact<br>Transaction Overview<br>25 |
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| 1-4 Family<br>& HELOC<br>16%<br>OO CRE<br>4%<br>NOO CRE<br>14%<br>Multifamily<br>6%<br>C&D<br>12%<br>C&I<br>Agriculturial & 19%<br>Farm<br>7%<br>Consumer<br>& Other<br>22%<br>Non-interest<br>Bearing<br>20% IB, MMDA<br>& Savings<br>66%<br>Retail CDs<br>7%<br>Jumbo<br>CDs<br>7%<br>Key Highlights(1) Pro Forma Branch Map<br>Pro Forma Loan & Deposit Composition(2)<br>Deposit Portfolio<br>Total<br>Assets<br>$5.5<br>Billion<br>Total<br>Loans<br>$3.7<br>Billion<br>Total<br>Deposits<br>$4.7<br>Billion<br>’25<br>ROAA 1.22% ’25<br>ROATCE ’25 NIM 3.92% 16.8%<br>Loan Portfolio<br>1.32%<br>Cost of Dep.<br>6.22%<br>Yield on Loans<br>THFF (70)<br> Simply (13)<br>Pro Forma Overview<br>26 | |||
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| § Expands footprint into<br>Southeastern Tennessee and<br>Northern Georgia<br>§ Deploy our non-lending products<br>across SimplyBank’s current<br>footprint and clientele<br>§ Boosts earnings profile while<br>maintaining a strong capital<br>position<br>Strategic Markets Financials Risk Profile<br>§ Expands franchise into higher-growth Knoxville, Chattanooga<br>& Cleveland markets<br>§ 3.8% avg. expected 5-year<br>pop. growth compared to<br>2.1% national aggregate<br>§ Top three deposit market share in<br>five counties<br>§ More than triples First Financial’s<br>Tennessee deposit franchise<br>§ Significant earnings accretion<br>expected; 30%+ estimated<br>accretion inclusive of fully-phased in cost savings<br>§ Reasonable TBV dilution<br>earnback of approximately 3.0<br>years<br>§ Anticipated IRR greater than<br>20%<br>§ Extensive due diligence including<br>review of approximately 60% of<br>commercial loans<br>§ Detailed analysis of non-interest<br>expense to determine savings<br>potential<br>§ Minimal execution risk expected<br>with continuous cooperation of<br>management teams<br>§ Diversifies balance sheet and<br>geography with non-complex<br>business lines in stable markets<br>Transaction Rationale<br>27 | |||
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| Norman D. Lowery<br>President and CEO<br>lowerynd@first-online.com<br>812.238.6185<br>Rodger A. McHargue<br>Chief Financial Officer, SVP<br>rmchargue@first-online.com<br>812.238.6334<br>Stephen P. Panagouleas<br>Central Credit Administration Manager<br>spanagouleas@first-online.com<br>812.238.6431<br>Thank You!<br>: THFF | |||
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