First Financial Bankshares, Inc. · NASDAQ:FFIN

First Financial Bankshares — Shareholder Meeting (April 2015)

71 slides from First Financial Bankshares's shareholder meeting presentation, Apr 28, 2015

  1. Slide 1: 2015 Annual Shareholder Meeting

    2015 Annual Shareholder Meeting Thank you for 125 years of allowing us to put You First.

  2. Slide 2: Senior Management: Years with Company, Years in Industry

    Years with Company Years in Industry Scott Dueser Chairman of the Board, President & 38 43 Chief Executive Officer Ron Butler Executive Vice President 22 33 Chief Administrative Officer Gary S. Gragg Executive Vice President 24 36 Credit Administration J. Bruce Hildebrand, CPA Executive Vice Preside

  3. Slide 3: Senior Management at First Financial

    Senior Management at First Financial Years with Company Years in Industry Brandon Harris Senior Vice President 2 15 Appraisal Services Monica Houston Senior Vice President 20 20 Training Larry Kentz Senior Vice President & Compliance Officer 1 35 Compliance Luke Longhofer Senior Vice President & Loa

  4. Slide 4: Experienced Regional CEOs & Presidents

    Experienced Regional CEOs & Presidents Years with Company Years in Industry Marelyn Shedd, Abilene 23 31 Mike Mauldin, Hereford 12 37 Kirby Andrews, Sweetwater 24 27 Trent Swearengin, Eastland 15 17 Mike Boyd, San Angelo 39 42 Tom O’Neil, Cleburne 16 34 Ron Mullins, Stephenville 8 36 Jay Gibbs, Weat

  5. Slide 5: Thank you for years of allowing us to put You First.

    Thank you for 125 years of allowing us to put You First.

  6. Slide 6: Independent Public Auditors

    Independent Public Auditors Building a better working world

  7. Slide 7: First Financial Bankshares, Inc.

    FIRST FINANCIAL BANKSHARES, INC. TM A Family of community BanksTM FIRST FINANCIAL BANKSHARES, INC.

  8. Slide 8: Board of Directors

    Board of Directors Years as Board Committee Member Appointment April Anthony Chief Executive Officer — Nominated Encompass Home Health and Hospice & Homecare Homebase Steven L. Beal Executive Director and Former President and COO of 5 Compensation Concho Resources Inc. Nominating / Corporate Governa

  9. Slide 9: Board of Directors

    Board of Directors Years as Board Committee Member Appointment Ron Giddiens 6 Audit G&G Investments Tim Lancaster 2 Audit President and CEO Hedrick Health System Kade L. Matthews 17 Compensation Ranching and Investments Ross H. Smith, Jr. 1 Compensation Chairman and President Akrotex, Inc. Executive

  10. Slide 10: First Financial Bankshares, Inc.

    FIRST FINANCIAL BANKSHARES, INC. TM A Family of community BanksTM FIRST FINANCIAL BANKSHARES, INC.

  11. Slide 11: Ms. April Anthony

    Ms. April Anthony FIRST FINANCIAL BANKSHARES

  12. Slide 12: Thank you for years of allowing us to put You First.

    Thank you for 125 years of allowing us to put You First.

  13. Slide 13: Forward Looking Statement

    Forward Looking Statement The numbers, as of and for the three months ended March 31, 2015, 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 s

  14. Slide 14: 2014 Financial Review

    2014 Financial Review FIRST FINANCIAL BANKSHARES

  15. Slide 15: First Financial Bankshares

    FIRST FINANCIAL BANKSHARES

  16. Slide 16: 28th Consecutive Year of Increased Earnings

    28th Consecutive Year of Increased Earnings FFIN Earnings (in millions) $89.6 $78.9 $74.2 $68.4 $59.7 $53.8 2009 2010 2011 2012 2013 2014

  17. Slide 17: Strong Shareholder Earnings

    Strong Shareholder Earnings Basic Earnings Per Share $1.40 $1.24 $1.18 $1.09 $0.95 $0.86 2009 2010 2011 2012 2013 2014 *Per share amounts reflect the 2 for 1 stock split that was effective June 2, 2014.

  18. Slide 18: Working Harder and Smarter

    Working Harder and Smarter Efficiency Ratio (FFIN vs. Peers) 2009 2010 2011 2012 2013 2014 First Financial 50.11% 49.49% 48.37% 48.14% 50.20% 49.24% Peer Group 69.53% 67.33% 65.57% 65.77% 67.79% 66.77%

  19. Slide 19: Net Interest Margin

    Net Interest Margin Quarterly Interest Margin 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st Qtr. ‘11 Qtr. ‘12 Qtr. ‘12 Qtr. ‘12 Qtr. ‘12 Qtr. ‘13 Qtr. ‘13 Qtr. ‘13 Qtr. ‘13 Qtr. ‘14 Qtr. ‘14 Qtr. ‘14 Qtr. ‘14 Qtr. ‘15 First Financial Pe

  20. Slide 20: FFIN Outperforms Peers

    FFIN Outperforms Peers Percentage Return on Average Assets 1.75% 1.78% 1.75% 1.64% 1.65% 0.98% 1.04% 0.94% 0.80% Financial Group First Peer 0.24% 2010 2011 2012 2013 2014

  21. Slide 21: Strong Return on Capital

    Strong Return on Capital Percentage Return on Average Equity 14.44% 13.74% 13.85% 13.75% 14.00% 8.89% 8.56% 8.23% 7.27% Financial Group First 0.88%Peer 2010 2011 2012 2013 2014

  22. Slide 22: Capital Ratios

    Capital Ratios To be considered 12-31-14 03-31-15 well Capitalized Tier 1 9.89 9.85 > 5.00 Leverage Ratio Tier 1 Risk 16.05 16.23 > 6.00 Based Capital Ratio Risk Based 17.16 17.35 > 10.00 Capital Ratio

  23. Slide 23: Asset Performance

    Asset Performance Growth in Total Assets (in millions) $5,848 $5,222 $4,502 $4,121 $3,776 $3,279 2009 2010 2011 2012 2013 2014

  24. Slide 24: Loan Performance

    Loan Performance Growth in FFIN Total Loans (in millions) $2,938 $2,689 Real Estate $2,089 Commercial $1,831 $1,690 $1,787 $1,689 $1,514 Consumer $1,238 $990 $1,076 $860 Agricultural $590 $640 $510 $406 $429 $427 $175 $191 $218 $273 $334 $361 $73 $81 $66 $68 $76 $106 2009 2010 2011 2012 2013 2014

  25. Slide 25: Sound Lending Practices

    Sound Lending Practices Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers) 2009 2010 2011 2012 2013 2014 First Financial 1.46% 1.53% 1.64% 1.22% 1.16% 0.74% Peer Group 5.41% 5.37% 4.59% 3.67% 2.71% 1.94%

  26. Slide 26: Deposit Growth

    Deposit Growth Growth in FFIN Total Deposits (in millions) $4,750 $4,135 $3,633 $3,335 $3,113 $3,180 $2,685 $2,773 $2,321 $2,233 $2,154 $1,849 $1,570 $836 $959 $1,102 $ 1,312 $1,362 2009 2010 2011 2012 2013 2014 Non Interest Bearing Interest Bearing

  27. Slide 27: 1st Quarter 2015 Summary

    1st Quarter 2015 Summary FIRST FINANCIAL BANKSHARES

  28. Slide 28: 1st Quarter Earnings

    1st Quarter Earnings FFIN Earnings $24.0 $22.3 $17.8 $18.6 $16.3 $13.7 2010 2011 2012 2013 2014 2015

  29. Slide 29: Shareholder Earnings – 1st Quarter

    Shareholder Earnings – 1st Quarter Basic Earnings Per Share $0.37 $0.35 $0.28 $0.30 $0.26 $0.22 2010 2011 2012 2013 2014 2015

  30. Slide 30: First Financial Trust & Asset Management Company NA

    FIRST FINANCIAL TRUST & ASSET MANAGEMENT COMPANY NA A Family of Community Banks

  31. Slide 31: Growth in Trust Assets

    Growth in Trust Assets Total Trust Assets $3,759 $3,361 $2,852 $2,774 $2,431 $2,465 $2,102 $2,297 $2,233 $1,912 $1,664 $1,783 Value Value ket Mar Book 2009 2010 2011 2012 2013 2014

  32. Slide 32: Total Trust Fees

    Total Trust Fees Growth in FFTAM Fees (in thousands) $18,766 $16,317 $14,464 $12,671 $10,808 $9,083 2009 2010 2011 2012 2013 2014

  33. Slide 33: Revenue from Mineral Management

    Revenue from Mineral Management Growth in Mineral Management (in thousands) $3,150 $2,648 $2,167 $1,835 $1,159 $745 2009 2010 2011 2012 2013 2014

  34. Slide 34: Total Trust Net Income

    Total Trust Net Income Growth in FFTAM Net Income (in thousands) $7,109 $6,142 $5,183 $4,176 $3,254 $2,631 2009 2010 2011 2012 2013 2014

  35. Slide 35: Managed Equity Styles

    Managed Equity Styles Equity Income Core Domestic Core Diversified Core World Strategic Growth

  36. Slide 36: Trust Office—Lubbock

    Trust Office—Lubbock

  37. Slide 37: First Financial Trust & Asset Management Locations

    First Financial Trust & Asset Management Locations

  38. Slide 38: First Financial Trust & Asset Management Company NA

    FIRST FINANCIAL TRUST & ASSET MANAGEMENT COMPANY NA A Family of Community Banks

  39. Slide 39: Total Trust Fees

    Total Trust Fees Growth in FFTAM Fees (in thousands) $4,576 $4,732 $3,793 $3,454 $3,044 $2,526 2010 2011 2012 2013 2014 2015

  40. Slide 40: Book Value of Assets

    First financial Trust & Asset Management Company NA Book Value of Assets 3,000 2,900 2,800 2,700 2,600 2,500 2,400 2,300 2,200 2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 3,000 2,900 2,800 2,700 2,600 2,500 2,400 2,300 2,200 2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300

  41. Slide 41: First Financial Trust & Asset Management Company NA

    FIRST FINANCIAL TRUST & ASSET MANAGEMENT COMPANY NA A Family of Community Banks

  42. Slide 42: Thank you for years of allowing us to put You First.

    Thank you for 125 years of allowing us to put You First.

  43. Slide 43: #1 in the Nation by Bank Director Magazine

    # 2 in 2012 # 2 in 2013 #1 in the Nation by Bank Director Magazine # 2 in 2009 # 2 in 2010 # 2 in 2011

  44. Slide 44: First Bank, N.A.—Conroe Proposed Acquisition

    First Bank, N.A.—Conroe Proposed Acquisition Definitive Agreement Signed— April 2015 Montgomery, Walker, & Harris Counties (On I-45 North of Houston) Exxon Mobil Headquarters in the Woodlands Montgomery County – Approximately 500,000 residents, 55% growth from 2000 to 2010, 24th fastest growing coun

  45. Slide 45: Conroe – Main Facility

    Conroe – Main Facility

  46. Slide 46: Conroe - Westview Branch

    Conroe - Westview Branch ane

  47. Slide 47: Cut and Shoot Branch

    Cut and Shoot Branch

  48. Slide 48: Huntsville Branch

    Huntsville Branch

  49. Slide 49: Willis Branch

    Willis Branch

  50. Slide 50: Montgomery Branch

    Montgomery Branch

  51. Slide 51: Magnolia Branch

    Magnolia Branch

  52. Slide 52: Creekside Branch—Tomball

    Creekside Branch—Tomball

  53. Slide 53: First Financial Bankshares, Inc.

    FIRST FINANCIAL BANKSHARES, INC. TM A Family of community Banks

  54. Slide 54: Sam Baker, President & CEO – First Bank Conroe

    Sam Baker, President & CEO – First Bank Conroe

  55. Slide 55: First Bank, Conroe

    First Bank, Conroe Jay Shands, Chairman of the Board Trey Denman, Director Sam Baker, President & CEO Bart Griffith, EVP & Chief Lending Officer Jed Crow, EVP Lending Lee Warren, SVP & Chief Operations Officer

  56. Slide 56: 4Trust Mortgage Proposed Acquisition Announced

    4Trust Mortgage Proposed Acquisition Announced Asset Purchase Agreement Signed— April 2015 Anticipated effective date – May 31, 2015 Originated $175 million in mortgage loans in 2014 – Compared to $225 million that First Financial Bank originated in 15 year old Company with offices in Fort Worth, Da

  57. Slide 57: 4Trust Management – Kami, Ryan, Troy & Tammie

    4Trust Management – Kami, Ryan, Troy & Tammie

  58. Slide 58: Fort Worth – Forest Park Blvd. and Rosedale

    Fort Worth – Forest Park Blvd. and Rosedale

  59. Slide 59: Fort Worth – Forest Park Blvd. and Rosedale

    Fort Worth – Forest Park Blvd. and Rosedale

  60. Slide 60: Keller – 1491 Keller Parkway – February 2014

    Keller – 1491 Keller Parkway – February 2014

  61. Slide 61: Beaumont – 61st Branch – 3515 Dowlen Rd. – Aug. 2014

    Beaumont – 61st Branch – 3515 Dowlen Rd. – Aug. 2014

  62. Slide 62: New Waverly – 62nd Branch – SH North – Aug. 2014

    New Waverly – 62nd Branch – 125 SH 75 North – Aug. 2014

  63. Slide 63: Trust Office – Lubbock – Oct. 2014

    Trust Office – Lubbock – 4903 82nd St. Suite 30 – Oct. 2014

  64. Slide 64: Weatherford – Adams Dr. – April 2015

    Weatherford – 745 Adams Dr. – April 2015

  65. Slide 65: Odessa – Billy Hext Road & Eastridge

    Odessa – Billy Hext Road & Eastridge

  66. Slide 66: Cisco – Conrad Hilton & West 20th St.

    Cisco – Conrad Hilton & West 20th St.

  67. Slide 67: Total Return on Investment

    Total Return on Investment Assume you owned 1,000 shares of FFIN stock on January 1, 2014… Stock cost in January 2014 $33,060 Dividend declared ($0.55 x 1,000 shares) $ 550 Decrease in stock price during 2014 $ ($ 2210,720 2,630) ($33.06 to$29.88 X 1,000 shares) 2014 return on investment -7.96% 2013

  68. Slide 68: Strong Stock Performance

    Strong Stock Performance 150.00% 100.00% 50.00% 0.00% -50.00% -100.00% Jan . ‘07 Dec ‘07 Dec ‘08 Dec . ‘09 Dec. ‘10 Dec. ’11 Dec. ’12 Dec. ’13 Dec. ’14 Mar. ’15 FFIN S&P 500 NASDAQ Dow Jones

  69. Slide 69: Dividends Per Share

    Dividends Per Share Annual Dividends Declared Per Share* $0.55 $0.50 $0.52 $0.46 $0.48 2010 2011 2012 2013 2014 *Per share amounts reflect the 2 for 1 stock split that was effective June 2, 2014.

  70. Slide 70: Increased Cash Dividend

    Increased Cash Dividend Increase cash Dividend by $0.02 to $0.16 per quarter – 14.3% increase 2015 Dividend will be $0.62 Annualized Dividend will be $0.64 Shareholders of record as of June 16, 2015 Dividend payable July 1, 2015

  71. Slide 71: Thank you for years of allowing us to put You First.

    Thank you for 125 years of allowing us to put You First.

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