First Financial Bankshares, Inc. · NASDAQ:FFIN

First Financial Bankshares — Shareholder Meeting (April 2018)

61 slides from First Financial Bankshares's shareholder meeting presentation, Apr 24, 2018

  1. Slide 1: 2018 Annual Shareholders' Meeting

    2018 Annual Shareholders’ Meeting Reaching out to our communities in need

  2. Slide 2: Executive Management at First Financial

    4 Years with Company Years in Industry Scott Dueser Chairman of the Board, President & Chief Executive Officer 42 47 Ron Butler Executive Vice President Chief Administrative Officer 25 36 Tim Collard Executive Vice President Lending 16 37 Troy Fore President First Financial Mortgage 3 37 Gary S. Gra

  3. Slide 3: Executive Management at First Financial

    5 Years with Company Years in Industry Luke Longhofer Executive Vice President Chief Credit Officer 7 15 Randy Roewe Executive Vice President Chief Risk Officer 2 25 Michele Stevens Executive Vice President Advertising and Marketing 20 35 Kirk Thaxton, CTFA President First Financial Trust & Asset Ma

  4. Slide 4: Senior Management at First Financial

    6 Years with Company Years in Industry Brandon Harris Senior Vice President Appraisal Services 3 16 Larry Kentz Senior Vice President & Compliance Officer Compliance 3 36 J. Kyle McVey Senior Vice President Chief Accounting Officer 7 9 Senior Management at First Financial

  5. Slide 5: Line of Business Executives

    7 Years with Company Years in Industry Brandon Barker Co-Manager First Financial Investment Advisors 11 24 Frank Gioia Senior Vice President Call Center 2 30 Tony Gorman Senior Vice President Human Resources 3 30 Rick Howard Co-Manager First Financial Investment Advisors 7 10 Michael Wolverton Execu

  6. Slide 6: Experienced Regional CEOs & Presidents

    Experienced Regional CEOs & Presidents Years with Company Years in Industry Marelyn Shedd, Abilene 27 34 David Bailey, Eastland 14 14 Joseph Crouch, Sweetwater—16 Mike Mauldin, Hereford 15 40 Chris Evatt, San Angelo 17 17 Tom O’Neil, Cleburne 20 38 Austin Elsner, Cleburne 1 17 Trent Swearengin, Step

  7. Slide 7: First Financial Bankshares, Inc.

    FIRST FINANCIAL BANKSHARES, INC. TM

  8. Slide 8: Independent Public Auditors

    Independent Public Auditors

  9. Slide 9: First Financial Bankshares, Inc.

    FIRST FINANCIAL BANKSHARES, INC. TM

  10. Slide 10: Board of Directors

    Board of Directors Years as Board Member Committee Appointment April Anthony Chief Executive Officer Encompass Home Health and Hospice & Homecare Homebase 3 Audit Tucker S. Bridwell President, Mansefeldt Investment Corporation 11 Lead Director / Executive Nominating / Corporate Governance David Cope

  11. Slide 11: Board of Directors

    Board of Directors Years as Board Member Committee Appointment Ron Giddiens G&G Investments 9 Audit Tim Lancaster President and CEO Hedrick Health System 5 Audit / Compensation Kade L. Matthews Ranching and Investments 20 Compensation Ross H. Smith, Jr. Chairman and President Akrotex, Inc. 4 Compens

  12. Slide 12: First Financial Bankshares, Inc.

    FIRST FINANCIAL BANKSHARES, INC. TM

  13. Slide 13: Forward Looking Statement

    Forward Looking Statement The numbers, as of and for the three months ended March 31, 2018, 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: 2017 Financial Review

    2017 Financial Review

  15. Slide 15: Earnings

    Earnings

  16. Slide 16: 31st Consecutive Year of Increased Earnings

    18 $74.2 $78.9 $89.6 $100.4 $104.8 $120.4 2012 2013 2014 2015 2016 2017 31st Consecutive Year of Increased Earnings FFIN Earnings (in millions) $7.65* * Adjustment for tax rate change

  17. Slide 17: Strong Shareholder Earnings

    19 $1.18 $1.24 $1.40 $1.55 $1.59 $1.82 2012 2013 2014 2015 2016 2017 Strong Shareholder Earnings Basic Earnings Per Share $0.11* * Adjustment for tax rate change

  18. Slide 18: Working Harder and Smarter: Efficiency Ratio

    20 2012 2013 2014 2015 2016 2017 First Financial 48.14% 50.20% 49.24% 47.61% 49.22% 49.26% Peer Group 65.77% 67.87% 66.94% 63.92% 62.83% 61.01% Working Harder and Smarter Efficiency Ratio (FFIN vs. Peers)

  19. Slide 19: Net Interest Margin

    21 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 3rd Qtr. ‘14 4th Qtr. ‘14 1st Qtr. ‘15 2nd Qtr. ‘15 3rd Qtr. ‘15 4th Qtr. ‘15 1st Qtr. ‘16 2nd Qtr. ‘16 3rd Qtr. ‘16 4th Qtr. ‘16 1st Qtr. ‘17 2nd Qtr. ‘17 3rd Qtr. ‘17 4th Qtr. ‘17 First Financial Peer Group Net Interest Margin Quarterly Inte

  20. Slide 20: FFIN Outperforms Peers

    22 1.64% 1.65% 1.61% 1.59% 1.72% 1.03% 0.95% 0.95% 1.00% 0.95% 2013 2014 2015 2016 2017 FFIN Outperforms Peers Percentage Return on Average Assets Peer Group First Financial

  21. Slide 21: Strong Return on Capital

    23 13.75% 14.00% 13.60% 12.36% 13.63% 8.88% 8.32% 8.59% 9.16% 8.67% 2013 2014 2015 2016 2017 Strong Return on Capital Percentage Return on Average Equity Peer Group First Financial

  22. Slide 22: Capital Ratios

    12-31-17 03-31-18 To meet Requirements of BASEL III for 2018 Tier 1 Leverage Ratio 11.09 10.88 > 4.00 Common Equity Tier 1 Capital Ratio 18.66 18.45 > 6.375 Tier 1 Capital Ratio 18.66 18.45 >7.875 Total Capital Ratio 19.85 19.59 > 9.875 Capital Ratios

  23. Slide 23: Asset Performance

    25 $4,502 $5,222 $5,848 $6,665 $6,810 $7,255 2012 2013 2014 2015 2016 2017 Growth in Total Assets Asset Performance (in millions)

  24. Slide 24: Loan Performance

    26 $68 $76 $106 $102 $84 $95 $273 $334 $361 $386 $409 $404 $510 $590 $640 $685 $674 $683 $1,238 $1,689 $1,831 $2,178 $2,217 2012 2013 2014 2015 2016 2017 Real Estate Commercial Consumer Agricultural Loan Performance Growth in FFIN Total Loans (in millions) $2,089 $2,689 $2,938 $3,501 $3,351 $3,384 $

  25. Slide 25: Sound Lending Practices

    27 2012 2013 2014 2015 2016 2017 First Financial 1.22% 1.16% 0.74% 0.90% 0.86% 0.57% Peer Group 3.67% 2.71% 1.92% 1.32% 1.05% 0.86% Sound Lending Practices Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)

  26. Slide 26: Deposit Growth

    28 $1,312 $1,362 $1,570 $1,746 $1,718 2,042 $2,321 $2,773 $3,180 $3,444 $3,761 $3,921 2012 2013 2014 2015 2016 2017 Non Interest Bearing Interest Bearing Deposit Growth Growth in FFIN Total Deposits (in millions) $5,963 $3,633 $4,135 $4,750 $5,190 $5,479

  27. Slide 27: 1st Quarter 2018 Summary

    1st Quarter 2018 Summary

  28. Slide 28: 1st Quarter Earnings

    $18.6 $22.3 $24.0 $25.7 $26.6 $34.5 2013 2014 2015 2016 2017 2018 1st Quarter Earnings FFIN Earnings (in millions)

  29. Slide 29: Shareholder Earnings – 1st Quarter

    $0.30 $0.35 $0.37 $0.39 $0.40 $0.51 2013 2014 2015 2016 2017 2018 Shareholder Earnings – 1st Quarter Basic Earnings Per Share

  30. Slide 30: Asset Performance

    1 $5,222 $5,848 $6,665 $6,810 $7,255 $7,567* 2013 2014 2015 2016 2017 2018 Growth in Total Assets Asset Performance (in millions) *As of March 31, 2018

  31. Slide 31: Loan Performance

    2 $76 $106 $102 $84 $95 $96 $334 $361 $386 $409 $404 $397 $590 $640 $685 $674 $683 $728 $1,689 $1,831 $2,178 $2,217 $2,319 $2,526 2013 2014 2015 2016 2017 2018 Real Estate Commercial Consumer Agricultural Loan Performance Growth in FFIN Total Loans (in millions) $2,689 $2,938 $3,351 $3,747* $3,384 $

  32. Slide 32: Deposit Growth

    34 $1,362 $1,570 $1,746 $1,718 $2,042 2,111 $2,773 $3,180 $3,444 $3,761 $3,921 $4,080 2013 2014 2015 2016 2017 2018 Non Interest Bearing Interest Bearing Deposit Growth Growth in FFIN Total Deposits (in millions) $6,191* $4,135 $4,750 $5,190 $5,479 $5,963 *As of March 31, 2018

  33. Slide 33: First Financial Trust & Asset Management Company NA

    FIRST FINANCIAL TRUST & ASSET MANAGEMENT COMPANY NA

  34. Slide 34: Growth in Trust Assets

    36 $2,233 $2,465 $2,774 $3,060 $3,374 $3,866 $2,852 $3,361 $3,759 $3,870 $4,373 $5,132 2012 2013 2014 2015 2016 2017 Growth in Trust Assets Total Trust Assets – Book Value / Fair Value (in millions) Book Value Fair Value

  35. Slide 35: Growth in FFTAM Fees

    37 $14,464 $16,317 $18,766 $19,252 $19,636 $23,694 2012 2013 2014 2015 2016 2017 Total Trust Fees Growth in FFTAM Fees (in thousands)

  36. Slide 36: Growth in Mineral Management

    $2,167 $2,648 $3,150 $2,005 $1,709 $2,412 2012 2013 2014 2015 2016 2017 Growth in Mineral Management Revenue from Mineral Management (in thousands)

  37. Slide 37: Growth in FFTAM Net Income

    39 $5,183 $6,142 $7,109 $7,449 $7,190 $8,579 2012 2013 2014 2015 2016 2017 Total Trust Net Income Growth in FFTAM Net Income (in thousands)

  38. Slide 38: Managed Equity Styles

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

  39. Slide 39: First Financial Trust & Asset Management Company NA

    FIRST FINANCIAL TRUST & ASSET MANAGEMENT COMPANY NA

  40. Slide 40: Trust Company Book Value of Assets

    First Financial Trust & Asset Management Company, N.A. Book Value of Assets 4,500 4,250 4,000 3,750 3,500 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,000 4,250 4,000 3,750 3,500 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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

    FIRST FINANCIAL TRUST & ASSET MANAGEMENT COMPANY NA

  42. Slide 42: First Financial Bankshares, Inc.

    FIRST FINANCIAL BANKSHARES, INC. TM

  43. Slide 43: 31st Consecutive Year of Increased Earnings

    45 $74.2 $78.9 $89.6 $100.4 $104.8 $120.4 2012 2013 2014 2015 2016 2017 31st Consecutive Year of Increased Earnings FFIN Earnings (in millions) $7.65* * Adjustment for tax rate change

  44. Slide 44: Improvements for 2018

    Improvements for 2018 Improve our interest rate margin Grow Loans and Deposits Grow Mortgage and Trust Increase our fee income Control expenses Continue to improve credit quality Make another acquisition

  45. Slide 45: Commercial State Bank—Kingwood Acquisition

    47 Consummated January 1, 2018 4 Branches in Kingwood, El Campo, Fulshear, Palacios $390.2 million in Assets as of December 31, 2017 $345.9 million in deposits $271.5 million in loans 1.23% Return on Assets in 2016 $59.4 million purchase price represents 13.78x last twelve months earnings Commercial

  46. Slide 46: Kingwood Management Team

    48 Kingwood Management Team

  47. Slide 47: Kingwood Region

    49 Kingwood Region Johnny Brooks, Chairman, President & CEO Shelley Dacus, Executive Vice President Lending James Alexander, Executive Vice President Lending Julie Barry, Attorney – Moody Law Group Jeff Cravey, President – Jeff M. Cravey P.C. Michael Gonzalez, President – The Gonzalez Group Ronnie M

  48. Slide 48: First Financial Bankshares Locations and Regions

    FIRST FINANCIAL BANKSHARES, INC. TM Abilene Region 325-627-7200 Sweet water 325-235-6600 Eastland 254-629-6100 ABILENE CLYDE MORAN ALBANY ODESSA SWEETWATER ROBY TRENT MERKEL EASTLAND RANGER RISING STAR CISCO Orange Region 800-300-8904 Hereford Region 806-363-8200 San Angelo Region 325-659-5900 Fort

  49. Slide 49: Kingwood

    Kingwood

  50. Slide 50: Fulshear

    Fulshear

  51. Slide 51: El Campo

    El Campo

  52. Slide 52: Palacios

    Palacios

  53. Slide 53: Abilene Buffalo Gap Road Opened May 2017

    Abilene 5257 Buffalo Gap Road opened May 2017

  54. Slide 54: San Angelo New Downtown Location

    San Angelo – New Downtown Location opened June 2017

  55. Slide 55: Orange New Location

    Orange New Location – Planned Opening Early 2019

  56. Slide 56: Management Enhancements

    Management Enhancements June 2017 – Chris Evatt, Chairman, President and CEO – San Angelo Region June 2017 – Mike Boyd Retires after 41 years of service – San Angelo August 2017 – Cory Crenshaw – Market President – Mineral Wells August 2017 – Ken Williamson Retires after 15 years of service – Minera

  57. Slide 57: Return on 1,000 Shares of FFIN Stock

    59 Stock cost in January 2017 $45,200 Dividend declared ($0.75 x 1,000 shares) $ 750 Decrease in stock price during 2017 ($45.20 to $45.05 X 1,000 shares) -$150 2017 return on investment 1.33% 2016 return on investment 52.14% 2015 return on investment 3.05% 2014 return on investment -7.96% 2013 retu

  58. Slide 58: Strong Stock Performance

    60 Strong Stock Performance -100.00% -50.00% 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% FFIN S&P 500 NASDAQ Dow Jones Jan . ‘07 Dec ‘07 Dec ‘08 Dec . ‘09 Dec. ‘10 Dec. ’11 Dec. ’12 Dec. ’13 Dec. ’14 Dec. ’15 Dec. ’16 Dec. ’17 Mar. ’18

  59. Slide 59: Dividends Per Share

    61 Dividends Per Share $0.52 $0.55 $0.62 $0.70 $0.75 2013 2014 2015 2016 2017 Annual Dividends Declared Per Share

  60. Slide 60: Increased Cash Dividend

    Increased Cash Dividend Increase cash Dividend by $0.02 to $0.21 per quarter – 10.5% increase 2018 Dividend will be $0.82 Shareholders of record as of June 15, 2018 Dividend payable July 2, 2018

  61. Slide 61: 2018 Annual Shareholder Meeting

    2018 Annual Shareholder Meeting

First Financial Bankshares — Shareholder Meeting (April 2018) on 6ix