First Financial Bankshares, Inc. · NASDAQ:FFIN
First Financial Bankshares — Shareholder Meeting (April 2024)
81 slides from First Financial Bankshares's shareholder meeting presentation, Apr 24, 2024
Slide 1: 2024 Annual Meeting of Shareholders
ONWARD ») 2024 ANNUAL MEETING OF SHAREHOLDERS F RST FINANCIAL BANKSHARES, INC.”
Slide 2: Executive Management Team
Executive Management Team Scott Dueser
Slide 3: Executive Management Team
Executive Management Team Ron Butler Michelle Hickox Executive Vice President Executive Vice President Chief Administrative Officer Chief Financial Officer vy 4 f Let ow iF v= At FFIN In Banking At FFIN In Banking
Slide 4: Executive Management Team
Executive Management Team David Bailey Luke Longhofer Executive Vice President Executive Vice President Chief Banking Officer Chief Credit Officer wl Of y 4 At FFIN InBanking AtEFIN In Banking
Slide 5: Executive Management Team
Executive Management Team Kirk Thaxton, CTFA Randy Roewe Chairman, President and CEO Executive Vice President First Financial Trust and Asset Management Chief Risk Officer At FFIN In Banking At FFIN In Banking
Slide 6: Executive Management Team
Executive Management Team John Ruzicka Kyle McVey, CPA Executive Vice President Executive Vice President > ii Chief Information Officer Chief Accounting Officer y e~ { ' - . - * At FFIN In Banking At FFIN In Banking
Slide 7: Senior Leadership
Senior Leadership Rett Everett Executive Vice President Credit Administration - DFW Keith Morton Executive Vice President Credit Administration — Southeast Texas At FFIN In Banking At FFIN In Banking d-m am 4 Michael Parker Executive Vice President Chief Compliance Officer At FFIN In Banking > Py
Slide 8: Senior Leadership
Senior Leadership Javier Jurado Eric Bonnell Executive Vice President Seni ‘e President Chief Audit Executive Enterprise Risk Management 7 At FFIN In Banking At FFIN In Banking
Slide 9: Line of Business Executives
Line of Business Executives Troy Fore Megan Dobbs Monica Houston Lori Hill President Executive Vice President Executive Vice President «ot Chan ai Executive Vice President First Financial Mortgage Advertising and Marketing Training Retail a AtFFIN | In the Industry AtFFIN | Inthe Industry AtFFIN | I
Slide 10: Line of Business Executives
Line of Business Executives Andrea Smiddy-Schlagel Maggie Tuschinski Mike Wolverton Executive Vice President Executive Vice President Executive Vice President Treasury Management Chief Digital Officer Consumer Lending At FFIN In Banking At FFIN In Banking At FFIN In Banking yo
Slide 11: Line of Business Executives
Line of Business Executives Frank Gioia Brandon Harris Josh Brown Gary Milliorn Senior Vice President Senior Vice President Senior Vice President Vice President Customer Care Center Appraisal Services Human Resources Property Management me A At FFIN In the Industry At FFIN In the Industry At FFIN In
Slide 12: Experienced Regional CEOs and Presidents
Experienced Regional CEOs and Presidents J Marelyn Shedd Candi Kanady Joseph Crouch
Slide 13: Experienced Regional CEOs and Presidents
Experienced Regional CEOs and Presidents J Chris Evatt Austin Elsner Trent Swearengin ia St
Slide 14: Experienced Regional CEOs and Presidents
Experienced Regional CEOs and Presidents J Justin Hooper Shelby Bruhn Blaine Caillier Chris Baughman Weatherford Southlake Southeast Texas, Conroe Southeast Texas
Slide 15: Experienced Regional CEOs and Presidents
Experienced Regional CEOs and Presidents J Marcus Morris Shelley Dacus Nora Thompson Kingwood Fort Worth BryanvCollege Station
Slide 16: Onward
ONWARD »»
Slide 17: Independent Public Auditors
Independent Public Auditors a EY Building a better working world
Slide 18: Onward
ONWARD »»
Slide 19: Corporate Board of Directors
Corporate Board of Directors Vianei Lopez Braun Chief Development Officer Decker Jones, P.C. Year | Committee Appointments April K. Anthony CEO, VitalCaring Group, Managing Partner Anthony Family Investment Partners, LTD. Executive Chair of Homecare Homebase Year Committee Appointment
Slide 20: Corporate Board of Directors
Corporate Board of Directors J pam Mike B. Denny Batjer and Associates, Inc. Z <a ai | 2019 | s’ Loan Committee (. =} Year Committee Appointments David L. Copeland President, SIPCO, Inc. and Shelton Family Foundatio ance
Slide 21: Corporate Board of Directors
Corporate Board of Directors J Murray H. Edwards Principal The Edwards Group \ F. Scott Dueser Chairman of the Board, President, and CEO First Financial Bankshares
Slide 22: Corporate Board of Directors
Corporate Board of Directors Tim Lancaster Former President and CEO, Hendrick Health System Year Committee Appointments =e Dr. Eli Jones Professor of Marketing, Lowry and Peggy Mays Eminent Scholar, Former Dean of Mays School of Business, Texas A@M University Year Committee Appointment
Slide 23: Corporate Board of Directors
Corporate Board of Directors J Robert C. Nickles, Jr. Executive Chairman Alegacy Group, LLC \ _ are 2019 | ee he 8 q Kade L. Matthews Ranching and Investments Year Committee Appointments
Slide 24: Corporate Board of Directors
Corporate Board of Directors J geen Johnny E. Trotter President and CEO, Livestock Investors, Ltd :) a)
Slide 25: Onward
ONWARD »»
Slide 26: Michelle Hickox, Chief Financial Officer
FIRST FINANCIAL BANKSHARES INC.” Michelle Hickox Chief Financial Officer
Slide 27: Forward Looking Statement
Forward Looking Statement Certain statements contained herein may be considered ‘forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information curr
Slide 28: 2023 Overview
FIRST FINANCIAL BANKSHARES INC.” 2023 Overview
Slide 29: Strong Historical Earnings
Strong Historical Earnings FFIN Earnings (in millions) $202.0 $199.0 $150.6 $164.8 2018 2019 2020 2021 2022 2023
Slide 30: Strong Shareholder Earnings
Strong Shareholder Earnings J Diluted Earnings Per Share $1.59 $1.64 $1.42. $1.39 $1.11 $1.21 2018 2019 2020 2021 2022 2023
Slide 31: FFIN Outperforms Peers
FFIN Outperforms Peers Percentage Return on Average Assets @ Peer Group 2.08% 1.98% 1.98% 1.89% 1.76% 1.55% 1.22% 1.19% as) 1.11% | iis 2 | AT i 2018 2019 2020 2021 2022 2023
Slide 32: Strong Return on Capital
Strong Return on Capital Percentage Return on Average Equity @ Peer Group 16.72% 15.37% 14.37% 14.99% , 13.31% 12.93% 4 11.94% , 11.03% hi a0 11.16% 9.14% ; 1 2018 2019 2020 2021 2022 2023
Slide 33: Net Interest Margin
Net Interest Margin Quarterly NIM % First Financial @ Peer Group 4.50% 4.25% 4.00% 375, “a i 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2019 2020 2021 2022 2023
Slide 34: Working Harder and Smarter
Working Harder and Smarter Efficiency Ratio (FFIN vs. Peers) 2018 2019 2020 2021 2022 2023
Slide 35: Capital Ratios
Capital Ratios To meet Requirements Dec. 31,2021 Dec. 31,2022 Dec. 31, 2023 ae a 11.13% 10.96% 12.06% > 4.00% Common Equity . . : . Tier 1 CapitalRato «19-35% 18.22% 18.50% > 7.00% Tier {Capital Ratio 49.35% 18.22% 18.50% > 8.50% Total Capital Ratio 20.44% 19.29% 19.62% > 10.50%
Slide 36: Total Asset Growth
Total Asset Growth 1 (in millions) $13,102 $12,974 $13,106 $10,905 $7,732 $8,262 2018 2019 2020 2021 2022 2023
Slide 37: 1st Quarter 2024 Financial Review
FIRST FINANCIAL BANKSHARES INC.” 1st Quarter 2024 Financial Review
Slide 38: 1st Quarter Earnings
1st Quarter Earnings FFIN Earnings (in millions) $56.9 $56.0 $52.6 $53.4 $38.3 $37.2 2019 2020 2021 2022 2023 2024
Slide 39: Diluted Earnings Per Share - 1st Quarter
Diluted Earnings Per Share - 1** Quarter Earnings Per Share (in actual dollars) $0.40 os $0.37 $0.37 $0.28 $0.26 2019 2020 2021 2022 2023 2024
Slide 40: Total Asset Growth
Total Asset Growth (in milfions) “As of March 31, 2024 $13,102 $12,974 $13,106 $13,191* $10,905 $8,262 2019 2020 2021 2022 2023 2024
Slide 41: David Bailey, Chief Banking Officer
FIRST FINANCIAL BANKSHARES INC.” David Bailey Chief Banking Officer
Slide 42: Total Deposit Growth
Total Deposit Growth J (in millions) *As of March 31, 2024 @ Noninterest-Bearing Interest-Bearing $10,566 $11,006 = $11,138 $11,290" $8,676 $6,604 = Ue $2,983 ae ee lea $3348 2019 2020 2021 2022 2023 2024
Slide 43: Deposit Account Growth
Deposit Account Growth J *As of March 31, 2024 16,095 11,897** 12,530 10,529 6,711 2,066_ 2019 2020 2021 2022 2023 = # 2024* 277,687 303,169 319,264 329,793 342,323 344,389 Total Number of Accounts "(Excluding Bryan/ College Station Acquisition)
Slide 44: Total Loan Growth
Total Loan Growth (in millions) "PPP Loans as of period end $7,1 63 $7,246** $6,454 aa $4,223 2019 2020 2021 2022 2023 2024 “As of March 31, 2024
Slide 45: Strategic Initiatives
Strategic Initiatives ™ Generating Urgency, Accountability, and Higher Expectations ™ Creating Better Internal Partnerships " Diversification of Regional Loan Portfolios ™ Recruitment of Proven, High Performing Bankers ™ Delivering an Exceptional Customer Experience
Slide 46: Sound Lending Practices
Sound Lending Practices I Nonperforming Assets as a Percentage of Loans Funded + Foreclosed Assets (FFIN vs. Peers) 2018 2019 2020 2021 2022 2023
Slide 47: Onward
ONWARD »»
Slide 48: Kirk W. Thaxton, First Financial Trust
FIRST FINANCIAL Kirk W. Thaxton, CTFA President and CEO First Financial Trust
Slide 49: Growth in Trust Assets
Growth in Trust Assets Total Trust Assets — Book Value / Fair Value (in millions) Value mi Fair Value $9,781 $8,699 $8,755 some $7,510 $6,927 $7,550 $5,599 a5 $5,398 $5,880 $4,294 r | 2018 2019 2020 2021 2022 2023
Slide 50: Total Trust Fees
Total Trust Fees J Growth in FFTAM Fees (in thousands) $39,995 $40,456 $36,145 $28,181 $28,401 $29,531 2018 2019 2020 2021 2022 2023
Slide 51: Revenue from Mineral Management
Revenue from Mineral Management (in thousands) $7,380 $6,226 $4,821 $4,640 $3,749 $2,776 2018 2019 2020 2021 2022 2023
Slide 52: Total Trust Net Income
Total Trust Net Income Growth in FFTAM Net Income (in thousands) $20,857 $21,624 $17,723 $13,532 $13,892 $14,471 2018 2019 2020 2021 2022 2023
Slide 53: Strong Returns
Strong Returns 2023 7 Year Average Strategic Growth 51.53% 12.44% Core 29.03% 12.75% Equity Income 19.96% 13.72%
Slide 54: Managed Equity Styles
Managed Equity Styles J Equity Income Wa \ Core Domestic | /, | Core Diversified 7 | Core World Strategic Growth
Slide 55: Your Future First
FIRST FINANCIAL YOUR FUTURE FIRST
Slide 56: Trust Office Locations
Sweetwater Abilene Fort Worth Stephenville Beaumont Abilene Sweetwater Stephenville San Angelo Fort Worth Odessa Beaumont Houston (Kingwood) Bryan/College Station
Slide 57: Book Value of Trust Assets
Book Value of Trust Assets (in millions) $8,000 5 $7,500 - $7,000 $6,500 $6,000 - $5,500 + $5,000 - $4,500 - $4,000 $3,500 $3,000 - $2,500 + $2,000 $1,500 - $1,000 + 05 «606 «(07,)s«8:si«is ss 1381415 1617S 18 1920s 23 24
Slide 58: Your Future First
FIRST FINANCIAL YOUR FUTURE FIRST
Slide 59: Onward
ONWARD »»
Slide 60: How Did We Get Here? Deposits Surged During COVID
How Did We Get Here? ... Deposits Surged During COVID Total Deposits of Commercial Banks in the United States (ST) $20.0 4/13/22 Peak of $18.2T $18.0 $17.6T $1.3T Gap $16.0 csear $14.0 $12.0 $3.57 Gap $1.3T Gap 19% of total 8% of total $10.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: FRED
Slide 61: Inflation Spiked and The Fed Responded
How Did We Get Here? ... Inflation Spiked and The Fed Responded Inflation Rate Since 2019 through March 2024 “Inflation is Transitory” June 2022 Peak 10.0% - 91% 75% May 2020 Trough 5.0% bas 3.5% 25% 0.0% 2019 2020 2021 2022 2023 2024 Changes In Fed Funds During Prior Cycles 6.50 7 — +525 bps 5.50%
Slide 62: Changes in Fed Funds During Prior Cycles
6.50% 5.50% 4.50% 3.50% 2.50% 1.50% 0.50% (0.50%) Changes In Fed Funds During Prior Cycles Current Cycle Q1’94- Q1’95 +300 bps +525 bps +525 bps wo in 16 months is the cy) ‘ is < fastest tightening o ‘ Fo cycle in 4 decades uo a r 2 Q1’88 - eg are9 2 +325 bps < = a Bo} o a Q2’99 - Q2’00 +175 bps 1Q4
Slide 63: Onward
ONWARD »»
Slide 64: Diverse Footprint Across Texas
Diverse Footprint Across Texas J
Slide 65: Huntsville branch opened March 2023
Slide 66: Bryan/College Station branch opened March 2023
Slide 67: New branch opening August 2025
= { ] i . a ; — Fe | et Plies bes = Openea—August 2025" * _ <a : —rt—“‘“‘:;C CC
Slide 68: i >
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Slide 69: Management Changes
ONWARD »» Management Changes
Slide 70: Management Changes
Management Changes January 2023 Michelle Hickox Executive Vice President Chief Financial Officer
Slide 71: Management Changes
Management Changes January 2023 Michael Parker Executive Vice President Chief Compliance Officer
Slide 72: Management Changes
Management Changes September 2023 Javier Jurado Executive Vice President Chief Audit Executive
Slide 73: Management Changes
Management Changes November 2023 Megan Dobbs Executive Vice President Marketing
Slide 74: Management Changes
Management Changes November 2023 Keith Morton Executive Vice President Southeast Texas Credit Administration
Slide 75: Management Changes
Management Changes January 2024 Eric Bonnell Senior Vice President Enterprise Risk Management
Slide 76: Management Changes
Management Changes January 2024 Lori Hill Executive Vice President Retail Banking
Slide 77: Management Changes
Management Changes February 2024 Blaine Caillier Regional CEO & President Southeast Texas Region
Slide 78: Community and Neighborhood Engagement
Community and Neighborhood Engagement >>
Slide 79: Diversity and Inclusion
Diversity and Inclusion DISABLED HB veterans EMPLOYEE DIVERSITY MINORITIES - 44% MINORITY EMPLOYEES - 1,483 www.ffin.com/diversity
Slide 80: Onward
ONWARD »»
Slide 81: First Financial Bankshares, Inc.
First Financial Bankshares — Shareholder Meeting (April 2024) on 6ix