First Financial Bankshares, Inc. · NASDAQ:FFIN
First Financial Bankshares — Investor Presentation (March 2008)
39 slides from First Financial Bankshares's investor presentation, Mar 12, 2008
Slide 1: First Financial Bankshares, Inc.
F_RST FINANCIAL BANKSHARES, INC. A Fat bias Fats
Slide 2: Forward Looking Statement
Forward Looking Statement The numbers, as of and for the year ended December 31, 2007, contained within this presentation are unaudited (pending completion of our annual audit) as well as amounts related to the Company's stock trading volume. Certain statements contained herein may be considered "fo
Slide 3: Who We Are
Who We Are $3.1 billion financial holding company headquartered in Abilene, Texas Group of 10 separately chartered banks 118 year history Growth markets include 50 mile radius of the DFW metroplex
Slide 4: What Makes Us Different
What Makes Us Different One Bank, Ten Charters Concept One Bank Consolidation of backroom operations (lower efficiency ratio) Agency agreements (customers may use any of our 45 locations) Ten Community Bank Charters Bank Presidents run their banks Local Boards Keep our banks locally focused Make sur
Slide 5: FFIN's Unique Positioning in Texas
FFIN's Unique Positioning in Texas Bank Key Markets BBVA / Texas Regional / State National / Compass Rio Grande, Gulf Coast, Houston, Dallas, El Paso, Lubbock Franklin East and Central Texas Frost / Summit San Antonio, Austin, Corpus Christi, DFW, Rio Grande Prosperity / TX United Houston, DFW, Aust
Slide 6: (Under Construction)
(Under Construction) (Under Construction) 5
Slide 7: Core Markets: West Central Texas
Core Markets: West Central Texas Markets served benefiting from well-established, long- time customers BANK ASSET SIZE* LOCATIONS DEPOSIT MARKET SHARE** MARKET SHARE RANK** First Financial Bank (Abilene, Clyde, Moran, Albany) $1,039 M 13 41% 1 Hereford State Bank $138 M 1 45% 1 First Financial Bank
Slide 8: Expansion Markets: DFW Area
Expansion Markets: DFW Area Markets served benefiting from growth in western part of Dallas/Fort Worth Metroplex BANK ASSET SIZE* LOCATIONS DEPOSIT MARKET SHARE** MARKET SHARE RANK** First Financial Bank (Cleburne, Burleson, Alvarado, Midlothian) $242 M 5 17% 2 First Financial Bank (Southlake, Troph
Slide 9: Strategy in Growth Markets
Strategy in Growth Markets Target growing communities with good infrastructure and amenities on the outskirts of the DFW metroplex Bank of choice Aim for #1 market share Be the community leader Have board made up of movers and shakers Benefit from more rational competitive environment
Slide 10: Target Banks for Acquisitions
Target Banks for Acquisitions Strategic: Asset size of $100 - $300 million Non-metropolitan areas Within 50 miles of DFW, I-35 corridor, east Texas and Texas Hill Country Utilize correspondent bank relationships Actively calling on banks that fit our profile
Slide 11: Acquisitions: Granbury and Glen Rose
Acquisitions: Granbury and Glen Rose Merged with First Financial Bank, Stephenville Added $109 million in assets to create $261M combined bank Granbury, Glen Rose southwest of Fort Worth
Slide 12: Acquisition: First National Bank of Bridgeport
Acquisition: First National Bank of Bridgeport $146 million in assets Combined with First Financial Bank, Southlake, to create $250 million bank 40 miles northwest of Fort Worth
Slide 13: Texas: Large and Growing
Texas: Large and Growing Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Growth (2000 - 2005) Five most populous states:* Gr
Slide 14: Target Markets - Population Growth
Target Markets - Population Growth Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in FFIN expansion markets:* Population growth (2000-2005) in
Slide 15: Experienced Management Team
Experienced Management Team Years with Company Years in Industry Kenneth T. Murphy Senior Chairman 36 44 Scott Dueser Chairman of the Board, President & Chief Executive Officer 32 37 J. Bruce Hildebrand, CPA Executive Vice President Chief Financial Officer 6 29 Gary L. Webb Executive Vice President
Slide 16: Experienced Bank Presidents
Experienced Bank Presidents Years with Company Years with Company Years in Industry Ron Butler, FFB Abilene Ron Butler, FFB Abilene 15 26 26 Mike Mauldin, Hereford SB Mike Mauldin, Hereford SB 6 30 30 J.V. Martin, FFB Sweetwater J.V. Martin, FFB Sweetwater 19 39 39 Tommy Barrow, FFB Eastland Tommy B
Slide 17: Growth in Total Assets
2002 2003 2004 2005 2006 2007 1993 2093 2315 2734 2850 3070 Growth in Total Assets Asset Performance 54% Growth (in millions)
Slide 18: Deposit Growth
2002 2003 2004 2005 2006 2007 Non Interest Bearing 426 472 512 623 685 739 Interest Bearing 1286 1324 1482 1743 1699 1807 Deposit Growth Growth in FFIN Total Deposits (in millions) $1,712 $1,796 $1,994 $2,366 $2,384 $2,546
Slide 19: Deposit Products
Deposit Products Time Demand Money Market Savings East 30 29 34 7
Slide 20: Loan Performance
2002 2003 2004 2005 2006 2007 Agricultural 63 69 80 85 73 84 Consumer 154 134 144 160 165 182 Student 74 54 32 37 31 32 Commercial 247 261 298 330 344 394 Real Estate 426 470 610 677 760 836 Loan Performance Growth in FFIN Total Loans (in millions) $964 $1,164 $1,289 $1,373 $1,528 $988
Slide 21: Major Products and Services
Major Products and Services Commercial Banking Small business, real estate, agriculture Significant relationships with medical profession Consumer Banking Personal banking services and mortgage originations Student Loans 9th largest lender in Texas (dollars)
Slide 22: Overview of Loan Portfolio
Overview of Loan Portfolio Commercial Agriculture Consumer Real Estate Student Loans East 26 6 12 55 2
Slide 23: Breakdown of R/E Loan Portfolio
Breakdown of R/E Loan Portfolio Residential Development & Construction 1-4 Family Commercial Development and Construction Commercial R/E Other R/E 135731731 228313841 94404697 240258390 148690113
Slide 24: Loan Portfolio Interest Rate Risk Analysis
Less than 1 year 1 to 3 years 3 to 5 years 5 to 10 years 10 to 15 years Over 15 years $647,497 $211,357 $227,288 $238,545 $85,802 $49,111 $30,903 43.4% 14.1% 15.3% 16.0% 5.8% 3.3% 2.1% Variable and Fixed Rate Loans *Excludes Student Loans and Credit Cards Loans Loan Portfolio Interest Rate Risk Anal
Slide 25: Sound Lending Practices
2002 2003 2004 2005 2006 2007 First Financial 0.44% 0.32% 0.43% 0.33% 0.30% 0.31% Peer Group 0.83% 0.82% 0.67% 0.56% 0.60% 0.91% Sound Lending Practices Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)
Slide 26: Growth in Trust Assets
2002 2003 2004 2005 2006 2007 986 992 1068 1150 1300 1428 Growth in Trust Assets 45% Growth Total Trust Assets (in millions)
Slide 27: Total Trust Fees
2002 2003 2004 2005 2006 2007 5836 6018 6374 7068 7665 8746 Total Trust Fees 50% Growth Growth in FFTAM Fees (in thousands)
Slide 28: Consecutive Year of Increased Earnings
2002 2003 2004 2005 2006 2007 34 35.3 39.17 44.02 46 49.5 21th Consecutive Year of Increased Earnings FFIN Earnings (in millions) 46% Growth $2.5
Slide 29: Strong Shareholder Earnings
2002 2003 2004 2005 2006 2007 1.65 1.71 1.9 2.13 2.22 2.38 Strong Shareholder Earnings Basic Earnings Per Share $0.13 44% Growth
Slide 30: Dividends Per Share
2002 2003 2004 2005 2006 2007 0.81 0.91 1 1.1 1.18 1.26 Dividends Per Share Annual Dividends Per Share 56% Growth
Slide 31: FFIN Outperforms Peers
2002 2003 2004 2005 2006 2007 0.0178 0.0175 0.0182 0.018 0.0168 0.0172 Peers 0.0118 0.0117 0.0112 0.0115 0.011 0.0098 FFIN Outperforms Peers Percentage Return on Average Assets Peer Group First Financial
Slide 32: Strong Return on Capital
2002 2003 2004 2005 2006 2007 0.1497 0.144 0.1509 0.1615 0.162 0.1587 Peers 0.1351 0.1346 0.1311 0.1333 0.1262 0.1095 Strong Return on Capital Percentage Return on Average Equity Peer Group First Financial
Slide 33: Net Interest Margin
3rd Qtr. '04 4th Qtr. '04 1st Qtr. '05 2nd Qtr. '05 3rd Qtr. '05 4th Qtr. '05 1st Qtr. '06 2nd Qtr. '06 3rd Qtr. '06 4th Qtr. '06 1st Qtr. '07 2nd Qtr. '07 3rd Qtr. '07 4th Qtr. '07 First Financial 0.0452 0.0446 0.0452 0.0453 0.0449 0.0443 0.0441 0.045 0.0449 0.0443 0.0438 0.0438 0.0445 0.045 Peer G
Slide 34: Working Harder and Smarter
2002 2003 2004 2005 2006 2007 First Financial 51.96% 52.52% 51.78% 52.48% 53.57% 52.83% Peer Group 59.44% 61.06% 61.14% 60.12% 61.32% 63.11% Working Harder and Smarter Efficiency Ratio (FFIN vs. Peers)
Slide 35: Total Return on Investment
Stock cost in January 2007 $41,860 Dividend received ($1.26 x 1,000 shares) $ 1,260 Decrease in stock price during 2007 ($41.86 to $37.65 X 1,000 shares) $10,720 2007 return on investment -7.05% 2006 return on investment 22.76% 2005 return on investment 7.58% 2004 return on investment 12.22% 2003 re
Slide 36: Increasing Stock Liquidity
Shares Traded 2002 2003 2004 2005 2006 2007 4909 5306 5052 6450 6967 13475 Increasing Stock Liquidity (in millions)
Slide 37: A Decade of Growth
A Decade of Growth Year End Total Assets (billions) Net Income (millions) Basic EPS Cash Dividends Year-End Market Value 2007 $3.07 $49.5 $2.38 $1.26 $37.65 2006 $2.85 $46.0 $2.22 $1.18 $41.86 2005 $2.73 $44.0 $2.13 $1.10 $35.06 2004 $2.32 $39.2 $1.90 $1.00 $33.61 2003 $2.09 $35.3 $1.71 $0.91 $30.84
Slide 38: Goals
Goals Look for additional acquisition and expansion opportunities Grow loan to deposit ratio while maintaining strong credit standards Improve our efficiency ratio Leverage our strengths in treasury management, mortgage loans, trust operations and student loans Continue to enhance the Customer Servi
Slide 39: First Financial Bankshares, Inc.
F RST FINANCIAL BANKSHARES, INC. A Family of Community Banks www.ffin.com
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