First Financial Bankshares, Inc. · NASDAQ:FFIN
First Financial Bankshares — Shareholder Meeting (April 2020)
82 slides from First Financial Bankshares's shareholder meeting presentation, Apr 28, 2020
Slide 1: 2020 Annual Shareholders' Meeting
2020 ANNUAL SHAREHOLDERS’ MEETING Exhibit 99.1
Slide 2: Executive Management Team
Scott Dueser Chairman of the Board, President and Chief Executive Officer At FFIN In Banking 44 49 Executive Management Team
Slide 3: Executive Management Team
Ron Butler Executive Vice President Chief Administrative Officer At FFIN In Banking 27 38 Gary S. Gragg Executive Vice President Chief Lending Officer At FFIN In Banking 29 41 Executive Management Team
Slide 4: Executive Management Team
Executive Management Team J. Bruce Hildebrand, CPA Executive Vice President Chief Administrative Officer At FFIN In Banking 17 41 Luke Longhofer Executive Vice President Chief Credit Officer At FFIN In Banking 9 17
Slide 5: Executive Management Team
Executive Management Team Randy Roewe Executive Vice President Chief Risk Officer At FFIN In Banking 5 30 John Ruzicka Executive Vice President Chief Information Officer At FFIN In Banking 2 40
Slide 6: Executive Management Team
Executive Management Team Tim Collard Executive Vice President Lending At FFIN In Banking 28 39 Kirk Thaxton, CTFA Chairman, President and CEO First Financial Trust At FFIN In Banking 33 37
Slide 7: Senior Management
Senior Management Larry Kentz Senior Vice President Chief Compliance Officer At FFIN In Banking 6 39 Brandon Harris Senior Vice President Appraisal Services At FFIN In Banking 6 19
Slide 8: Senior Management
Senior Management J. Kyle McVey Senior Vice President Chief Accounting Officer At FFIN In Banking 10 12 Marna Yerigan Executive Vice President Commercial Lending At FFIN In Banking 9 39
Slide 9: Line of Business Executives
Troy Fore President First Financial Mortgage At FFIN In Banking 5 35 Will Christoferson Senior Vice President Advertising and Marketing At FFIN In Banking 2 10 Josh Brown Vice President Human Resources Manager At FFIN In the Industry 6 11 Line of Business Executives Frank Gioia Senior Vice President
Slide 10: Line of Business Executives
Monica Houston Executive Vice President Retail Banking and Training At FFIN In Banking 26 26 Andrea Smiddy-Schlagel Executive Vice President Treasury Management At FFIN In Banking 2 32 Mike Wolverton Executive Vice President Consumer Lending At FFIN In Banking 9 35 Line of Business Executives Gary M
Slide 11: Experienced Regional CEOs and Presidents
Experienced Regional CEOs and Presidents Marelyn Shedd Abilene At FFIN In Banking 30 37 Joseph Crouch Sweetwater At FFIN In Banking 2 24 David Bailey Eastland At FFIN In Banking 17 17 Robert De La Cruz Hereford At FFIN In Banking 16 16
Slide 12: Experienced Regional CEOs and Presidents
Experienced Regional CEOs and Presidents Chris Evatt San Angelo At FFIN In Banking 20 20 Austin Elsner Cleburne At FFIN In Banking 3 20 Trent Swearengin Stephenville At FFIN In Banking 21 23 Justin Hooper Weatherford At FFIN In Banking 16 27
Slide 13: Experienced Regional CEOs and Presidents
Experienced Regional CEOs and Presidents Mark Jones Southlake At FFIN In Banking 20 43 Stephen Lee Southeast Texas At FFIN In Banking 8 32 Sam Baker Conroe At FFIN In Banking 5 44 Kirby Cason Huntsville At FFIN In Banking 2 14
Slide 14: Experienced Regional CEOs and Presidents
Johnny Brooks Kingwood – Chairman and CEO In Banking At FFIN 38 2 Marcus Morris Fort Worth At FFIN In Banking 10 12 Experienced Regional CEOs and Presidents 16 Shelley Dacus Kingwood - President At FFIN In Banking 2 Ivan Olson Bryan/College Station At FFIN In Banking 43 1
Slide 15: Slide 15
Slide 16: Independent Public Auditors
Independent Public Auditors
Slide 17: 2020 Annual Shareholders' Meeting
2020 ANNUAL SHAREHOLDERS’ MEETING
Slide 18: Board of Directors
April Anthony Chief Executive Officer Encompass Home Health & Homecare Homebase 2015 Audit Committee Appointment Year President, Mansefeldt Investment Corporation – Lead Director Tucker S. Bridwell - Executive - Nominating/Corporate Governance Committee Appointment Board of Directors Vianei Lopez Br
Slide 19: Board of Directors
Mike Denny President Batjer and Associates, Inc. Committee Appointment Principal The Edwards Group Murray Edwards Executive Audit Nominating/Corporate Governance Committee Appointment Board of Directors 2006 Year 2019 Year F. Scott Dueser Chairman of the Board, President, and CEO First Financial Ban
Slide 20: Board of Directors
Kade L. Matthews Ranching and Investments Compensation Committee Appointment Robert C. Nickles, Jr. Executive Chairman Alegacy Group, LLC Compensation Committee Appointment Board of Directors President and CEO Livestock Investors, Ltd. Johnny E. Trotter Executive Compensation Nominating/Corporate Go
Slide 21: 2020 Annual Shareholders' Meeting
2020 ANNUAL SHAREHOLDERS’ MEETING
Slide 22: Retiring Directors
Retiring Directors Ron Giddiens San Angelo | 11 Years Ross H. Smith Jr. Orange | 6 Years
Slide 23: Welcome New Director
Welcome New Director Vianei Lopez Braun Fort Worth | January, 2020
Slide 24: 2019 Financial Review
2019 Financial Review Earnings J. Bruce Hildebrand, CPA Chief Financial Officer
Slide 25: Forward-looking statements
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 currently available to the Com
Slide 26: FFIN Earnings
$0.66* $7.65* FFIN Earnings (in millions) * Adjusted for tax rate change 33rd Consecutive Year of Increased Earnings
Slide 27: Basic Earnings Per Share
$0.06* $0.01* Basic Earnings Per Share Strong Shareholder Earnings * Adjusted for tax rate change
Slide 28: Efficiency Ratio (FFIN vs. Peers)
2014 2015 2016 2017 2018 2019 First Financial 49.24% 47.61% 49.22% 49.26% 49.72% 48.61% Peer Group 66.94% 63.92% 62.83% 61.01% 60.51% 59.91% Efficiency Ratio (FFIN vs. Peers) Working Harder and Smarter
Slide 29: Quarterly Net Interest Margin
Quarterly Interest Margin 2016 2017 2018 Net Interest Margin 2019
Slide 30: Return on Average Assets
FFIN Outperforms Peers Percentage Return on Average Assets
Slide 31: Return on Average Equity
Strong Return on Capital Percentage Return on Average Equity
Slide 32: Capital Ratios
100.4 12/31/19 3/31/20 To meet Requirements of BASEL III for 2019 Tier 1 Leverage Ratio 12.60 12.49 > 4.00 Common Equity Tier 1 Capital Ratio 20.06 19.55 > 7.00 Tier 1 Capital Ratio 20.06 19.55 > 8.50 Total Capital Ratio 21.13 20.65 > 10.50 Capital Ratios
Slide 33: Asset Performance
Asset Performance Growth in Total Assets (in millions)
Slide 34: Loan Performance
Loan Performance Growth in Total Loans (in millions) $3,975 $4,223
Slide 35: Nonperforming Assets (FFIN vs. Peers)
2014 2015 2016 2017 2018 2019 First Financial 0.74% 0.90% 0.86% 0.57% 0.75% 0.61% Peer Group 1.92% 1.32% 1.05% 0.86% 0.82% 0.77% Nonperforming Assets as a Percentage of Loans Funded + Foreclosed Assets (FFIN vs. Peers) Sound Lending Practices
Slide 36: Deposit Growth
Deposit Growth Growth in FFIN Total Deposits (in millions) $6,180 $6,604
Slide 37: 1st Quarter 2020 Summary
FSRST FINANCIAL BANKSHARES INC.” 1st Quarter 2020 Summary
Slide 38: 1st Quarter Earnings
1st Quarter Earnings FFIN Earnings (in millions)
Slide 39: Shareholder Earnings – 1st Quarter
Shareholder Earnings – 1st Quarter Basic Earnings Per Share
Slide 40: Asset Performance
Asset Performance * *As of March 31, 2020 Growth in Total Assets (in millions)
Slide 41: Loan Performance
Loan Performance Growth in FFIN Total Loans (in millions) $3,975 $4,223 $4,681* *As of March 31, 2020
Slide 42: Deposit Growth
Deposit Growth Growth in FFIN Total Deposits (in millions) $6,180 $6,604 $7,210* *As of March 31, 2020
Slide 43: 2019 Review: First Financial Trust
2019 Review Kirk W. Thaxton, CTFA President and CEO First Financial Trust
Slide 44: Growth in Trust Assets
Growth in Trust Assets Total Trust Assets – Book Value / Fair Value (in millions)
Slide 45: Total Trust Fees
Total Trust Fees Growth in FFTAM Fees (in thousands)
Slide 46: Revenue from Mineral Management
Revenue from Mineral Management Growth in Mineral Management (in thousands)
Slide 47: Total Trust Net Income
Total Trust Net Income Growth in FFTAM Net Income (in thousands)
Slide 48: First Financial: Your Future First
FIRST FINANCIAL YOUR FUTURE FIRST
Slide 49: Managed Equity Styles
Equity Income Core Domestic Core Diversified Core World Strategic Growth Managed Equity Styles
Slide 50: First Financial: Your Future First
FIRST FINANCIAL YOUR FUTURE FIRST
Slide 51: Trust Locations
Trust Locations Abilene Sweetwater Stephenville San Angelo Fort Worth Odessa Beaumont Houston San Antonio
Slide 52: Book Value of Trust Assets
04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Book Value of Trust Assets 19 20 (in millions)
Slide 53: First Financial: Your Future First
FIRST FINANCIAL YOUR FUTURE FIRST
Slide 54: 2020 Annual Shareholders' Meeting
2020 ANNUAL SHAREHOLDERS’ MEETING
Slide 55: 33rd Consecutive Year of Increased Earnings
33rd Consecutive Year of Increased Earnings FFIN Earnings (in millions) $7.65* $0.66*
Slide 56: Total Return on Investment
Stock cost in January 2019 $28,840 Dividend declared ($0.47 x 1,000 shares) $470 Increase in stock price during 2018 ($28.84 to $35.10 x 1,000 Shares) $6,260 2019 return on investment 23.34% 2018 return on investment 29.88% 2017 return on investment 1.33% 2016 return on investment 52.14% 2015 return
Slide 57: Annual Return Since 1973
Assume you owned 100 shares of FFIN stock on January 1, 1973: Annual Return Since 1973 100 Shares in 1973 34,376 Shares Today 12.72% Average Annual Return of FFIN Since 1973 $4,900 Share Value in 1973 $1,206,598 Share Value on 12/31/2019 7.29% Average Annual Return of The S&P 500 Since 1973
Slide 58: Strong Stock Performance
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Dow Jones S&P 500 NASDAQ FFIN 2018 2019 Strong Stock Performance 2020 Through March 31, 2020
Slide 59: SBA Paycheck Protection Program Loans Funded
SBA – Paycheck Protection Program Loans Funded 4,900 Loan Fundings $646MM Total Dollars
Slide 60: Safe, Sound, and Secure
Safe, Sound, and Secure Strong Financial Performance, Capital, and Liquidity On March 11, 2020, SunTrust analysts ranked First Financial in the top ten banks with the best relative credit loss history with the highest relative capital levels within their coverage. Our extremely high percentage of ca
Slide 61: Top Rated Bank by Bank Director
Top Rated Bank by Bank Director
Slide 62: Dedicated to Excellence: Accomplishments in 2019
‘ Dedicated to EXCELLENCE Accomplishments in 2019
Slide 63: The Bank and Trust, Bryan/College Station
The Bank and Trust, Bryan/College Station Effective January 1, 2020 5 Branches in Bryan and College Station $631.1 million in assets as of December 31, 2019 $551.9 million in deposits $455.4 million in loans $190 million purchase price represents approximately 17.2x expected 2019 earnings The Bank a
Slide 64: Regions Across the State
12 Regions Across the State Abilene | Acton | Albany | Aledo | Alvarado | Beaumont | Boyd | Bridgeport @ Sra! Brock | Bryan | Burleson | Cisco | Cleburne | Clyde | College Station | ne wae Conroe | Cut and Shoot | Decatur | Eastland iy sehen | El Campo | Fort Worth | Fulshear | Glen A Rose | Granbur
Slide 65: Dedication to Excellence
Dedication to Excellence Horst Schulze Co-founder of Ritz-Carlton Hotels Customer Service First Consultant
Slide 66: Dedicated to Excellence: New Locations and Buildings
‘ Dedicated to EXCELLENCE New Locations and Buildings
Slide 67: Spring Opened January 2019
Spring Opened January 2019
Slide 68: Orange Opened March 2019
Orange Opened March 2019
Slide 69: Weatherford North Upgraded March 2020
Weatherford North Upgraded March 2020
Slide 70: Environmental Improvements
Environmental Improvements www.ffin.com/environment
Slide 71: Excellence: Management Changes
‘ EXCELLENCE Management Changes
Slide 72: Management Changes
Management Changes Justin Hooper Chairman, President, and CEO Weatherford Region Jay Gibbs January 2019
Slide 73: Management Changes
Management Changes Marcus Morris Chairman, President, and CEO Fort Worth Region April 2019
Slide 74: Management Changes
Management Changes Will Christoferson Senior Vice President Advertising and Marketing Michele Stevens April 2019
Slide 75: Management Changes
Management Changes Shelley Dacus President Kingwood Region May 2019
Slide 76: Management Changes
Management Changes Robert de la Cruz Chairman, President, and CEO Hereford Region Mike Mauldin October 2019
Slide 77: Management Changes
Management Changes James Gordon Executive Vice President Chief Financial Officer J. Bruce Hildebrand August 2020
Slide 78: Diversity and Inclusion
Diversity and Inclusion EMPLOYEE BASE 1,435 EMPLOYEES EMPLOYEE DIVERSITY FEMALE 72% | MALE 28% RACIAL MINORITIES 29.1% MINORITY 28% | 72% www.ffin.com/diversity
Slide 79: Dividends Per Share
Dividends Per Share Annual Dividends Declared per Share
Slide 80: Dividend Announcement
Shareholders of record as of June 16, 2020 Dividend payable July 1, 2020 Increase cash divided to $0.13 per quarter – 8.3% increase Dividend Announcement
Slide 81: Excellence: Looking Ahead
‘ EXCELLENCE Looking Ahead
Slide 82: First Financial Bankshares Inc.
FIRST FINANCIAL BANKSHARES INC."
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