First Financial Bankshares, Inc. · NASDAQ:FFIN
First Financial Bankshares — Shareholder Meeting (April 2013)
72 slides from First Financial Bankshares's shareholder meeting presentation, Apr 23, 2013
Slide 1: First Financial Bankshares: A Family of Community Banks
FIRST FINANCIAL BANKSHARE: A Family of Community Banks =
Slide 2: 2013 Annual Shareholder Meeting
2013 Annual Shareholder Meeting
Slide 3: Senior Management at First Financial
Years with Company Years in Industry Scott Dueser 37 42 J. Bruce Hildebrand, CPA 10 34 Gary L. Webb 10 24 Gary S. Gragg 22 34 Marna Yerigan 2 29 Ron Butler 19 31 Senior Management at First Financial Chairman of the Board, President & Chief Executive Officer Executive Vice President Chief Financial O
Slide 4: Senior Management at First Financial
Years with Company Years in Industry Michele Stevens 37 42 Courtney Jordan 10 34 Bob Goodner 12 35 Luke Longhofer 3 10 Brandon Harris 1 15 Kirk Thaxton, CTFA 26 30 Senior Management at First Financial Senior Vice President Advertising and Marketing Senior Vice President Training Senior Vice Presiden
Slide 5: Experienced Regional CEOs & Presidents
Experienced Regional CEOs & Presidents Years with Company Years in Industry Marelyn Shedd , Abilene 22 30 Mike Mauldin , Hereford 10 35 Kirby Andrews , Sweetwater 22 25 Trent Swearengin , Eastland 13 15 Mike Boyd , San Angelo 37 41 Tom O’Neil , Cleburne 15 33 Matt Reynolds , Cleburne 8 31 Ron Mullin
Slide 6: First Financial Bankshares: A Family of Community Banks
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 3 Executive / Audit Compensation Nominating/Corporate Governance Tucker S. Bridwell 6 Lead Director / Executive Audit / Nominating/ Corporate Governance Joseph E. Canon 17 Compensation Asset and Liability David Copeland 15
Slide 8: Board of Directors
Board of Directors Years as Board Member Committee Appointment Ron Giddiens 3 Audit Asset and Liability Tim Lancaster - Proposed - Audit Kade L. Matthews 14 Compensation Johnny E. Trotter 9 Executive Compensation Nominating/Corporate Governance G&G Investments President & CEO Hedrick Health System R
Slide 9: First Financial Bankshares: A Family of Community Banks
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
FIRST FINANCIAL BANKSHARE: A Family of Community Banks =
Slide 12: Forward Looking Statement
Forward Looking Statement The numbers, as of and for the three months ended March 31, 2013, 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
Slide 13: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 14: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 15: 26th Consecutive Year of Increased Earnings
26th Consecutive Year of Increased Earnings
Slide 16: Strong Shareholder Earnings
Strong Shareholder Earnings
Slide 17: Efficiency Ratio (FFIN vs. Peers)
Efficiency Ratio (FFINs. Peers) 2006 2007 008 2010 2011 2012 First Financlal 53.57% | 52.83% | 50.76% | 50.11% | 49.49% | 48.37% | 48.14% PeerGroup 61.29% 63.12% rs: f 5 65.57% 65.75% FIRST FINANCIAL BANKSHARES il
Slide 18: Net Interest Margin
Net Interest Margin Quarterly Interest Margin
Slide 19: FFIN Outperforms Peers: Return on Average Assets
FFIN Outperforms Peers Percentage Return on Average Assets
Slide 20: Strong Return on Capital
Strong Return on Capital Percentage Return on Average Equity
Slide 21: Capital Ratios
1231-12 03-31-13 Tobe sonsidered ‘well Capitalized Tier1 10.60 > 5.00 Leverage Ratio wil Tier 1 Risk 17.43 17.54 > 6.00 Based Capital Ratio RiskBased > 10.00 Capital Ratio FIRST FINANCIAL BANKSHARES il
Slide 22: Asset Performance
Asset Performance
Slide 23: Loan Performance
Loan Performance Growth in FFIN Total Loans (in millions) » Agricultural FIRST FINANCIAL BANKSHARES
Slide 24: Nonperforming Assets (FFIN vs. Peers)
Nonperforming assets as a percentage of (FFIN vs. Peers) 2007 2008 2011 2012 First Financial 0.31% 0.80% 1.64% 1.22% 0.98% Peer Group FIRST FINANCIAL BANKSHARES il
Slide 25: Deposit Growth
Deposit Growth
Slide 26: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 27: 1st Quarter Earnings
1 st Quarter Earnings
Slide 28: Account Growth
Net Growth in 2011 – 4,036 Accounts Net Growth in 2012 – 1,219 Accounts New Growth in 2013 – 1,139 Accounts Account Growth
Slide 29: Shareholder Earnings – 1st Quarter
Shareholder Earnings – 1 st Quarter
Slide 30: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST< ASSET MANAGEMENT COMPANY.. A Family of Community Banks
Slide 31: Growth in Trust Assets
Growth in Trust Assets
Slide 32: Total Trust Fees
Total Trust Fees
Slide 33: Revenue from Mineral Management
Revenue from Mineral Management
Slide 34: Net Trust Income
Net Trust Income
Slide 35: Managed Equity Styles
Managed Equity Styles Equity Income Core Domestic Core Diversified Core World Strategic Growth
Slide 36: Net Trust Income – 1st Quarter
Net Trust Income – 1 st Quarter
Slide 37: Trust Company Book Value of Assets
First Financial Trust & Asset Management Company NA Book Value of Assets 2,350 2,350 2,275 2,275 2,200 2,200 2,125 2,125 2,050 2,050 1.975 1.975 1,900 1,900 1,825 1,825 1,750 1,750 1,675 1,675 1,600 1,600 1,525 1,525 1,450 1,450 1375 1375 1,300 1,300 1,225 1,225 1,150 1,150 1,075 1,075 1,000 2004 20
Slide 38: Board of Directors – First Financial Trust & Asset Management
Board of Directors – First Financial Trust & Asset Management
Slide 39: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST< ASSET MANAGEMENT COMPANY.. A Family of Community Banks
Slide 40: First Financial Bankshares: A Family of Community Banks
FIRST FINANCIAL BANKSHARE: A Family of Community Banks =
Slide 41: The More Things Change, The More We Stay The Same
The More Things Change, The More We Stay The Same
Slide 42: First Financial Bankshares
FIRST FINANCIAL BANKSHARES
Slide 43: Mobile Banking
Mobile Banking
Slide 44: Challenges
Challenges Overwhelming number of unreasonable regulations from Washington Stagnant national economy Inept federal government Low interest rate environment Maintaining net interest margin Keep nonperforming assets to a minimum
Slide 45: Consolidation of Charters
Consolidation of Charters Regulatory compliance Technology complexities Cost Savings
Slide 46: Opportunities
Opportunities Loan Growth Mortgage Lending Trust Services Treasury Management Mobile Banking Lower Efficiency Ratio Potential Acquisitions
Slide 47: Recent De Novo Growth
Recent De Novo Growth Weatherford – I-20 Branch – Expected to Open 2 nd Qtr. 2013 San Angelo: HEB Branch – March 2013 Waxahachie: Branch of Cleburne – December 2012 Abilene: Antilley Road Branch – September 2012 Grapevine: Branch of Southlake – March 2012 Cisco: Branch of Eastland – September 2011 L
Slide 48: First Financial
fF RST FINANCIAL
Slide 49: Antilley Road – Abilene
Antilley Road - Abilene
Slide 50: Waxahachie
Waxahachie
Slide 51: HEB – San Angelo
HEB – San Angelo
Slide 52: I-20 – Weatherford
I-20 - Weatherford
Slide 53: Core Markets: West Central Texas
Core Markets: West Central Texas Markets served benefiting from well-established, long- time customers * Data as of 03-31-13 ** Data as of 06-30-12
Slide 54: Asset Size, Locations and Deposit Market Share
ASSET SIZE" LOCATIONS DEPOSITMARKET MARKET SHARE BEG Ot SHARE® RANK** First Financial Bank $344M 6 22% 1 (Cleburne, Burleson, Alvarado, Midlothian. Waxahachie) } First Financial Bank $355M 4 T% s (Southlake, Trophy Club, Keller, Grapevine 3 16% 3 Bridgeport, Decatur, Boyd) First Financial Bank $392
Slide 55: A Family of Community Banks
mily Of Community Banks FirtFinancal ake is Finacial ak cs mun ‘TRUST OFFICE LOCATIONS 1S es
Slide 56: Orange Acquisition
Orange Acquisition Definitive Agreement Signed - February 2013 Orange, Jefferson and Newton Counties Approximately 350,000 Residents Strategically located on Interstate 10 – 100 miles east of Houston Three Major Shipping Ports for Energy and Petrochemical industries Large refineries, natural gas ter
Slide 57: Stephen Lee – President Orange Savings Bank
Stephen Lee – President Orange Savings Bank
Slide 58: Board of Directors – Orange Savings Bank
Board of Directors – Orange Savings Bank
Slide 59: Orange
Orange
Slide 60: Mauriceville
Mauriceville
Slide 61: Newton
Newton
Slide 62: Vidor
Vidor
Slide 63: Port Arthur
Port Arthur
Slide 64: 26th Consecutive Year of Increased Earnings
26th Consecutive Year of Increased Earnings
Slide 65: Bank Director Magazine Rankings
by Bank Director Magazine 2012 #2 in #1 in #2 in 2009 2010 2011
Slide 66: Recognitions
Recognitions KBW Honor Roll – One of Forty-seven banks named – April 2013 SNL Financial #11 Best Performing Community Bank ($500M - $5B) – March 2013 Nifty 50: Bank Director Magazine - #5 – Based on Return on Equity / Average Tangible Equity – January 2013 American Banker - #19 – Based on three year
Slide 67: Stock Return on Investment
Stock cost in January 2012 $33,430 Dividend declared ($0.99 x 1,000 shares) $ 990 Increase in stock price during 2012 ($39.01 from $33.43 X 1,000 shares) 2012 return on investment 19.65% 2011 return on investment ry 0.61% 2010 return on investment -2.99% 0.69% 50.20% FIRST FINANCIAL BANKSHARES il
Slide 68: FFIN vs. S&P, NASDAQ, Dow Jones
— FFIN S&P 500 NASDAQ’ = Dow Jones FIRST FINANCIAL BANKSHARES
Slide 69: Annual Dividends Declared
Annual Dividends Declared P $0.79 $0.84 $0.89 $0.91 $0.99 $0.91 $0.95 FIRST FINANCIAL BANKSHARES
Slide 70: Increase Cash Dividend
Today $0.25 per share quarterly Increase cash divided to $0.26 per quarter – 4.0% increase Shareholders of record as of June 14, 2013 Dividend payable July 1, 2013 Increase Cash Dividend
Slide 71: First Financial Bankshares: A Family of Community Banks
FIRST FINANCIAL BANKSHARE: A Family of Community Banks =
Slide 72: www.ffin.com
www.ffin.com
First Financial Bankshares — Shareholder Meeting (April 2013) on 6ix