First Financial Bankshares, Inc. · NASDAQ:FFIN
First Financial Bankshares — Shareholder Meeting (April 2014)
66 slides from First Financial Bankshares's shareholder meeting presentation, Apr 22, 2014
Slide 1: First Financial Bankshares: A Family of Community Banks
e FIRST FINANCIAL BANKSHARE: A Family of Community Banks ™
Slide 2: 2014 Annual Shareholder Meeting
2014 Annual Shareholder Meeting
Slide 3: Senior Management at First Financial
Senior Management at First Financial Scott Dueser 38 43 J. Bruce Hildebrand, CPA 11 35 Gary L. Webb 11 25 Gary S. Gragg 23 35 Marna Yerigan 3 30 Ron Butler 21 32 Years with Company Years in Industry 2 Chairman of the Board, President & Chief Executive Officer Executive Vice President Chief Financial
Slide 4: Senior Management at First Financial
Senior Management at First Financial 3 Years with Company Years in Industry Michele Stevens 16 32 Courtney Jordan 5 18 Bob Goodner 12 35 Luke Longhofer 3 10 Brandon Harris 1 15 Kirk Thaxton, CTFA 27 31 Senior Vice President Advertising and Marketing Senior Vice President Training Senior Vice Preside
Slide 5: Experienced Regional CEOs & Presidents
Experienced Regional CEOs & Presidents 4 Years with Company Years in Industry Marelyn Shedd , Abilene 23 31 Mike Mauldin , Hereford 11 36 Kirby Andrews , Sweetwater 23 26 Trent Swearengin , Eastland 14 16 Mike Boyd , San Angelo 38 42 Tom O’Neil , Cleburne 15 34 Matt Reynolds , Cleburne 9 32 Ron Mull
Slide 6: First Financial Bankshares: A Family of Community Banks
e FIRST FINANCIAL BANKSHARE: A Family of Community Banks ™
Slide 7: Board of Directors
Board of Directors Years as Board Member Committee Appointment Steven L. Beal 4 Executive Compensation Nominating/Corporate Governance Tucker S. Bridwell 7 Lead Director / Executive Nominating / Corporate Governance David Copeland 16 Executive / Audit Nominating/Corporate Governance F. Scott Dueser
Slide 8: Board of Directors
Board of Directors Years as Board Member Committee Appointment Ron Giddiens 4 Audit Tim Lancaster 1 Audit Kade L. Matthews 15 Compensation Ross H. Smith, Jr. - Proposed - Compensation Johnny E. Trotter 10 Executive Compensation Nominating/Corporate Governance G&G Investments President and CEO Hedric
Slide 9: First Financial Bankshares: A Family of Community Banks
e FIRST FINANCIAL BANKSHARE: A Family of Community Banks ™
Slide 10: Independent Public Auditors
Independent Public Auditors
Slide 11: First Financial Bankshares: A Family of Community Banks
e FIRST FINANCIAL BANKSHARE: A Family of Community Banks ™
Slide 12: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 13: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 14: First Financial Bankshares: A Family of Community Banks
e FIRST FINANCIAL BANKSHARE: A Family of Community Banks ™
Slide 15: Forward Looking Statement
Forward Looking Statement The numbers, as of and for the three months ended March 31, 2014, contained within this presentation are unaudited. Certain statements contained herein may be considered “forward- looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These
Slide 16: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 17: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 18: 27th Consecutive Year of Increased Earnings
27th Consecutive Year of Increased Earnings FFIN Earnings (in millions)
Slide 19: Strong Shareholder Earnings
Strong Shareholder Earnings Basic Earnings Per Share
Slide 20: Working Harder and Smarter: Efficiency Ratio
2007 2008 2009 2010 2011 2012 2013 Peer Group 63.12% 68.12% 69.53% 67.33% 65.57% 65.77% 68.51% Working Harder and Smarter Efficiency Ratio (FFIN vs. Peers) First Financial 52.83% 50.76% 50.11% 49.49% 48.37% 48.14% 50.19%
Slide 21: Net Interest Margin
Net Interest Margin Quarterly Interest Margin
Slide 22: FFIN Outperforms Peers
FFIN Outperforms Peers Percentage Return on Average Assets 1.72% 1.74% 1.72% 1.75% 1.78% 1.75% 1.64% 0.87% -0.03% -0.18% 0.24% 0.79% 0.98% 1.05%
Slide 23: Strong Return on Capital
Strong Return on Capital Percentage Return on Average Equity
Slide 24: Capital Ratios
12-31-13 03-31-14 To be considered well Capitalized Tier 1 Leverage Ratio 9.84 9.95 > 5.00 Tier 1 Risk Based Capital Ratio 15.82 16.24 > 6.00 Risk Based Capital Ratio 16.92 17.39 > 10.00 Capital Ratios
Slide 25: Growth in Total Assets
Growth in Total Assets Asset Performance (in millions)
Slide 26: Loan Performance
Loan Performance Growth in FFIN Total Loans (in millions)
Slide 27: Sound Lending Practices
2008 2009 2010 2011 2012 2013 Peer Group 2.63% 5.41% 5.37% 4.59% 3.67% 2.72% Sound Lending Practices Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers) First Financial 0.80% 1.46% 1.53% 1.64% 1.22% 1.16%
Slide 28: Deposit Growth
Deposit Growth Growth in FFIN Total Deposits (in millions) $4,135 $2,583 $2,685 $3,113 $3,335 $3,633
Slide 29: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 30: 1st Quarter Earnings
1 st Quarter Earnings (in millions) FFIN Earnings
Slide 31: Account Growth
December 31, 2011 December 31, 2012 December 31, 2013* March 31, 2014 Total Number of Accounts 204,063 205,282 208,590 226,527 Net Growth in 2011 – 4,036 Accounts Net Growth in 2012 – 1,219 Accounts Net Growth in 2013 – 3,308 Accounts* New Growth in 2014 – 2,600 Accounts Account Growth *(Excluding O
Slide 32: Shareholder Earnings – 1st Quarter
Shareholder Earnings – 1 st Quarter Basic Earnings Per Share
Slide 33: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST «ASSET MANAGEMENT COMPANY.. A Family of Community Banks
Slide 34: Growth in Trust Assets
Growth in Trust Assets Total Trust Assets – Book Value (in millions)
Slide 35: Total Trust Fees
Total Trust Fees Growth in FFTAM Fees (in thousands)
Slide 36: Growth in Mineral Management
Growth in Mineral Management Revenue from Mineral Management (in thousands)
Slide 37: Growth in FFTAM Income
Growth in FFTAM Income Net Trust Income (in thousands)
Slide 38: Managed Equity Styles
Managed Equity Styles Equity Income Core Domestic Core Diversified Core World Strategic Growth
Slide 39: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST «ASSET MANAGEMENT COMPANY.. A Family of Community Banks
Slide 40: First Financial Trust & Asset Management Book Value of Assets
First Financial Trust & Asset Management Company NA Book Value of Assets 2,600 [| 2,600 2,500 2,500 2,400 2,400 2,300 2,300 2,200 2,200 2,100 2,100 2,000 2,000 1,900 1,900 1,800 1,800 1,700 1,700 1,600 1,600 1,500 1,500 1,400 1,400 1,300 1,300 1,200 1,200 1,100 1,100 1,000 1,000 2006 2009 2010 2011
Slide 41: Growth in FFTAM Income – 1st Quarter
Growth in FFTAM Income Net Trust Income – 1 st Quarter (in thousands)
Slide 42: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST «ASSET MANAGEMENT COMPANY.. A Family of Community Banks
Slide 43: First Financial Bankshares: A Family of Community Banks
e FIRST FINANCIAL BANKSHARE: A Family of Community Banks ™
Slide 44: Building on a Stronger Foundation
; BUILDING ON A STRONGER FOUNDATION
Slide 45: Growth in Total Assets
Growth in Total Assets Asset Performance (in millions)
Slide 46: Challenges
Challenges Overwhelming number of unreasonable and ineffective regulations from Washington Inept federal government Stagnant national economy Low interest rate environment Maintaining net interest margin Keep nonperforming assets to a minimum
Slide 47: Opportunities
Opportunities Loan Growth Mortgage Lending Trust Services Treasury Management Mobile Banking Lower Efficiency Ratio Potential Acquisitions
Slide 48: Consolidation of Charters
Consolidation of Charters Was very timely Regulatory compliance Technology complexities Cost savings Continue to operate as regions with local management, advisory boards and decisions
Slide 49: Orange Acquisition – now Southeast Region
Orange Acquisition – now Southeast Region Effective May 31, 2013 5 locations in Orange, Jefferson and Newton Counties 41% market share in home market of Orange County $443 million in Assets $293 million in loans $386 million in deposits Excellent addition and provides diversification Vibrant economy
Slide 50: Beaumont – 1st Branch
Beaumont – st Branch
Slide 51: HEB – San Angelo
HEB – San Angelo
Slide 52: Weatherford I-20
I-20 - Weatherford
Slide 53: Keller – Southlake
Keller – Southlake – 1491 Keller Parkway
Slide 54: Roby – Remodeled in 2013
Roby – Remodeled in 2013
Slide 55: Ranger – Remodeled in 2014
Ranger – Remodeled in 2014
Slide 56: Fort Worth – Forest Park Blvd. and Rosedale
Fort Worth – Forest Park Blvd. and Rosedale
Slide 57: Fort Worth – Forest Park Blvd. and Rosedale
Fort Worth – Forest Park Blvd. and Rosedale
Slide 58: rat Finanlal Bank
rat Finanlal Bank Few Financia ak let Financial Rank Piet Pinanlal Bank AB SAN ANGELO 325-235-6600
Slide 59: 27th Consecutive Year of Increased Earnings
27th Consecutive Year of Increased Earnings FFIN Earnings (in millions) $53.1 $53.8 $59.7 $68.4 $74.2 $78.9 2008 2009 2010 2011 2012 2013
Slide 60: Bank Director Magazine Rankings
#2 in #2 in 2011 #3 in the 2012 7] Nation by Bank Director Magazine 2013 #2 in #1 in 2009 2010
Slide 61: Total Return on Investment
Total Return on Investment Stock cost in January 2013 $39,010 Dividend declared $ 1,030 Increase in stock price during 2013 2013 return on investment 72.11% 2012 return on investment 19.65% 2011 return on investment 0.61% 2010 return on investment -2.99% 2009 return on investment 0.69% Assume you ow
Slide 62: Strong Stock Performance
Strong Stock Performance -100.00% -50.00% 0.00% 50.00% 100.00% 150.00% Jan . ‘07 Mar. ’14 Dec . ‘09 Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11 Dec. ’12 FFIN S&P 500 NASDAQ Dow Jones
Slide 63: Dividends Per Share
Dividends Per Share Annual Dividends Declared Per Share $0.84 $0.89 $0.91 $0.91 $0.95 $0.99 $1.03 2007 2008 2009 2010 2011 2012 2013
Slide 64: Stock Split and Increased Cash Dividend
Two-for-One Stock Split – 100% Stock Dividend Effective Shareholders of record as of May 15, 2014 Distribution Date June 2, 2014 Increase cash divided to $0.14 per quarter – 7.7% increase Shareholders of record as of June 16, 2014 Dividend payable July 1, 2014 Stock Split and Increased Cash Dividend
Slide 65: First Financial Bankshares: A Family of Community Banks
e FIRST FINANCIAL BANKSHARE: A Family of Community Banks ™
Slide 66: www.ffin.com
www.ffin.com
First Financial Bankshares — Shareholder Meeting (April 2014) on 6ix