First Financial Bankshares, Inc. · NASDAQ:FFIN
First Financial Bankshares — Investor Presentation (January 2008)
40 slides from First Financial Bankshares's investor presentation, Jan 16, 2008
Slide 1: First Financial Bankshares, Inc. - A Family of Community Banks
F RST FINANCIAL BANKSHARES, INC. A Family of Community Banks Eeracd
Slide 2: Forward Looking Statement
Forward Looking Statement The numbers, as of and for the nine months ended September 30, 2007, contained within this presentation are unaudited as well as amounts related to the Company's stock trading volume. Certain statements contained herein may be considered "forward-looking statements" as defi
Slide 3: Who We Are
Who We Are $2.9 billion financial holding company headquartered in Abilene, Texas Group of 10 separately chartered banks 117 year history Growth markets include 50 mile radius of the DFW metroplex
Slide 4: What Makes Us Different
What Makes Us Different One Bank, Ten Charters Concept One Bank Consolidation of backroom operations (lower efficiency ratio) Agency agreements (customers may use any of our 45 locations) Ten Community Bank Charters Bank Presidents run their banks Local Boards Keep our banks locally focused Make sur
Slide 5: FFIN's Unique Positioning in Texas
FFIN's Unique Positioning in Texas Bank Key Markets BBVA / Texas Regional / State National / Compass Rio Grande, Gulf Coast, Houston, Dallas, El Paso, Lubbock Franklin East and Central Texas Frost / Summit San Antonio, Austin, Corpus Christi, DFW, Rio Grande Prosperity / TX United Houston, DFW, Aust
Slide 6: (Under Construction)
(Under Construction) (Under Construction) 5
Slide 7: Core Markets: West Central Texas
Core Markets: West Central Texas Markets served benefiting from well-established, long- time customers BANK ASSET SIZE* LOCATIONS DEPOSIT MARKET SHARE** MARKET SHARE RANK** First Financial Bank (Abilene, Clyde, Moran, Albany) $911 M 13 41% 1 Hereford State Bank $111 M 1 45% 1 First Financial Bank (E
Slide 8: Expansion Markets: DFW Area
Expansion Markets: DFW Area Markets served benefiting from growth in western part of Dallas/Fort Worth Metroplex BANK ASSET SIZE* LOCATIONS DEPOSIT MARKET SHARE** MARKET SHARE RANK** First Financial Bank (Cleburne, Burleson, Alvarado, Midlothian) $236 M 5 18% 2 First Financial Bank (Southlake, Troph
Slide 9: Strategy in Growth Markets
Strategy in Growth Markets Target growing communities with good infrastructure and amenities on the outskirts of the DFW metroplex Bank of choice Aim for #1 market share Be the community leader Have board made up of movers and shakers Benefit from more rational competitive environment
Slide 10: Target Banks for Acquisitions
Target Banks for Acquisitions Strategic: Asset size of $100 - $300 million Non-metropolitan areas Within 50 miles of DFW, I-35 corridor, east Texas and Texas Hill Country Utilize correspondent bank relationships Actively calling on banks that fit our profile
Slide 11: Recent Acquisitions: Granbury and Glen Rose
Recent Acquisitions: Granbury and Glen Rose Merged with First Financial Bank, Stephenville Added $109 million in assets to create $261M combined bank Granbury, Glen Rose southwest of Fort Worth
Slide 12: Recent Acquisition: First National Bank of Bridgeport
Recent Acquisition: First National Bank of Bridgeport $146 million in assets Combined with First Financial Bank, Southlake, to create $250 million bank 40 miles northwest of Fort Worth
Slide 13: Texas: Large and Growing
Texas: Large and Growing Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Gr
Slide 14: Target Markets - Population Growth
Target Markets - Population Growth Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in
Slide 15: Abilene: Diversified, Growing Economy
Abilene: Diversified, Growing Economy Home to 3 universities, 2 colleges and Dyess AFB Regional center for healthcare, retail, retirement living, culture and tourism Texas Tech School of Pharmacy opened fall 2007 Retail sales up 3.5%* Average home-sale price up 4.7%* * Abilene Economic Index Year-to
Slide 16: Experienced Management Team
Experienced Management Team Years with Company Years in Industry Kenneth T. Murphy Chairman of the Board 36 44 Scott Dueser President & Chief Executive Officer 31 36 J. Bruce Hildebrand, CPA Executive Vice President Chief Financial Officer 5 28 Gary L. Webb Executive Vice President Operations 5 21 G
Slide 17: Experienced Bank Presidents
Experienced Bank Presidents Years with Company Years with Company Years in Industry Ron Butler, FFB Abilene Ron Butler, FFB Abilene 14 24 24 Mike Mauldin, Hereford SB Mike Mauldin, Hereford SB 5 30 30 J.V. Martin, FNB Sweetwater J.V. Martin, FNB Sweetwater 18 37 37 Tommy Barrow, FFB Eastland Tommy B
Slide 18: Growth in Total Assets
2002 2003 2004 2005 2006 2007 1993 2093 2315 2734 2850 2894 Growth in Total Assets Asset Performance 45% Growth (in millions) (thru Sept. 30th)
Slide 19: Deposit Growth
2002 2003 2004 2005 2006 2007 Non Interest Bearing 426 472 512 623 685 658 Interest Bearing 1286 1324 1482 1743 1699 1725 Deposit Growth Growth in FFIN Total Deposits (in millions) (thru Sept 30th) $1,712 $1,796 $1,994 $2,366 $2,384 $2,383
Slide 20: Deposit Products
Deposit Products Time Demand Money Market Savings East 33 28 33 6 (thru Sept 30th)
Slide 21: Loan Performance
2002 2003 2004 2005 2006 2007 Agricultural 63 69 80 85 73 78 Consumer 154 134 144 160 165 175 Student 74 54 32 37 31 31 Commercial 247 261 298 330 344 359 Real Estate 426 470 610 677 760 814 Loan Performance Growth in FFIN Total Loans (in millions) (thru Sept 30th) $964 $1,164 $1,289 $1,373 $1,457 $
Slide 22: Major Products and Services
Major Products and Services Commercial Banking Small business, real estate, agriculture Significant relationships with medical profession Consumer Banking Personal banking services and mortgage originations Student Loans 9th largest lender in Texas (dollars)
Slide 23: Overview of Loan Portfolio
Overview of Loan Portfolio Commercial Agriculture Consumer Real Estate Student Loans East 25 5 12 56 2 (thru Sept 30th)
Slide 24: Breakdown of R/E Loan Portfolio
Breakdown of R/E Loan Portfolio Residential Development & Construction 1-4 Family Commercial Development and Construction Commercial R/E Other R/E 130479491 221564676 89425769 234324696 148480037 (thru Sept 30th)
Slide 25: Loan Portfolio Interest Rate Risk Analysis
Less than 1 year 1 to 3 years 3 to 5 years 5 to 10 years 10 to 15 years Over 15 years $610,935 $207,300 $225,531 $226,914 $77,585 $42,829 $26,964 43.1% 14.6% 15.9% 16.0% 5.5% 3.0% 1.9% Variable and Fixed Rate Loans *Excludes Student Loans and Credit Cards Loans Loan Portfolio Interest Rate Risk Anal
Slide 26: Sound Lending Practices
2002 2003 2004 2005 2006 2007 First Financial 0.44% 0.32% 0.43% 0.33% 0.30% 0.47% Peer Group 0.83% 0.82% 0.67% 0.56% 0.60% 0.77% Sound Lending Practices Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers) (thru Sept 30th)
Slide 27: Growth in Trust Assets
2002 2003 2004 2005 2006 2007 986 992 1068 1150 1300 1381 Growth in Trust Assets 40% Growth Total Trust Assets (in millions) (thru Sept 30th)
Slide 28: Growth in FFTAM Fees
2002 2003 2004 2005 2006 2007 5836 6018 6374 7068 7665 6706 Total Trust Fees 30% Growth Growth in FFTAM Fees (in thousands) (thru Sept 30th)
Slide 29: FFIN Earnings
2002 2003 2004 2005 2006 2007 34 35.3 39.17 44.02 46 36.98 20th Consecutive Year of Increased Earnings FFIN Earnings (in millions) 35% Growth $2.5 thru Sept 30th
Slide 30: Strong Shareholder Earnings
2002 2003 2004 2005 2006 2007 1.65 1.71 1.9 2.13 2.22 1.78 Strong Shareholder Earnings Basic Earnings Per Share $0.13 35% Growth thru Sept 30th
Slide 31: Annual Dividends Per Share
2002 2003 2004 2005 2006 2007 0.81 0.91 1 1.1 1.18 0.94 Dividends Per Share Annual Dividends Per Share 46% Growth thru Sept 30th
Slide 32: FFIN Outperforms Peers
2002 2003 2004 2005 2006 2007 0.0178 0.0175 0.0182 0.018 0.0168 0.0173 Peers 0.0118 0.0117 0.0112 0.0115 0.011 0.0099 FFIN Outperforms Peers Percentage Return on Average Assets Peer Group First Financial (thru Sept 30th)
Slide 33: Strong Return on Capital
2002 2003 2004 2005 2006 2007 0.1497 0.144 0.1509 0.1615 0.162 0.161 Peers 0.1351 0.1346 0.1311 0.1333 0.1262 0.1105 Strong Return on Capital Percentage Return on Average Equity Peer Group First Financial (thru Sept 30th)
Slide 34: Net Interest Margin
2nd Qtr. '04 3rd Qtr. '04 4th Qtr. '04 1st Qtr. '05 2nd Qtr. '05 3rd Qtr. '05 4th Qtr. '05 1st Qtr. '06 2nd Qtr. '06 3rd Qtr. '06 4th Qtr. '06 1st Qtr. '07 2nd Qtr. '07 3rd Qtr. '07 First Financial 0.0451 0.0452 0.0446 0.0452 0.0453 0.0449 0.0443 0.0441 0.045 0.0449 0.0443 0.0438 0.0438 0.0445 Peer
Slide 35: Working Harder and Smarter
2002 2003 2004 2005 2006 2007 First Financial 51.96% 52.52% 51.78% 52.48% 53.57% 52.85% Peer Group 59.44% 61.06% 61.14% 60.12% 61.32% 63.40% Working Harder and Smarter (peer data) Efficiency Ratio (FFIN vs. Peers) (thru Sept 30th)
Slide 36: Return on 1,000 shares of FFIN stock
Stock cost in January 2006 $35,060 Dividend received ($1.18 x 1,000 shares) $ 1,180 Increase in stock price during 2006 ($35.06 to $41.86 X 1,000 shares) $10,720 2006 return on investment 22.76% 2005 return on investment 7.58% 2004 return on investment 12.22% 2003 return on investment 39.24% 2002 re
Slide 37: Increasing Stock Liquidity
Shares Traded 2001 2002 2003 2004 2005 2006 2007 3267 4909 5306 5052 6450 6967 9351 Increasing Stock Liquidity (in millions) 113% Growth (thru Sept 30th)
Slide 38: A Decade of Growth
A Decade of Growth Year End Total Assets (billions) Net Income (millions) Basic EPS Cash Dividends Year-End Market Value 2006 $2.85 $46.0 $2.22 $1.18 $41.86 2005 $2.73 $44.0 $2.13 $1.10 $35.06 2004 $2.32 $39.2 $1.90 $1.00 $33.61 2003 $2.09 $35.3 $1.71 $0.91 $30.84 2002 $1.99 $34.0 $1.65 $0.81 $22.80
Slide 39: Goals
Goals Look for additional acquisition and expansion opportunities Grow loan to deposit ratio while maintaining strong credit standards Improve our efficiency ratio Leverage our strengths in treasury management, mortgage loans, trust operations and student loans Continue to enhance the Customer Servi
Slide 40: First Financial Bankshares, Inc.
F RST FINANCIAL BANKSHARES, INC. A Family of Community Banks Eeracd
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