First Financial Bankshares, Inc. · NASDAQ:FFIN
First Financial Bankshares — Shareholder Meeting (April 2016)
65 slides from First Financial Bankshares's shareholder meeting presentation, Apr 26, 2016
Slide 1: 2016 Annual Shareholder Meeting
2016 Annual Shareholder Meeting Exhibit 99.1
Slide 2: Executive Management at First Financial
Years with Company Years in Industry Scott Dueser Chairman of the Board, President & Chief Executive Officer 40 45 Ron Butler Executive Vice President Chief Administrative Officer 23 34 Troy Fore President First Financial Mortgage - 35 Gary S. Gragg Executive Vice President Lending 26 38 J. Bruce Hi
Slide 3: Executive Management at First Financial
Years with Company Years in Industry Luke Longhofer Executive Vice President & Loan Review Officer Lending 6 13 Stan Limerick Executive Vice President Chief Information Officer 1 35 Randy Roewe Executive Vice President Chief Risk Officer - 25 Kirk Thaxton, CTFA President First Financial Trust & Asse
Slide 4: Senior Management at First Financial
Years with Company Years in Industry Brandon Harris Senior Vice President Appraisal Services 2 15 Monica Houston Senior Vice President Training 20 20 Larry Kentz Senior Vice President & Compliance Officer Compliance 2 36 Michele Stevens Senior Vice President Advertising and Marketing 16 32 Senior Ma
Slide 5: Experienced Regional CEOs & Presidents
Experienced Regional CEOs & Presidents Years with Company Years in Industry Marelyn Shedd, Abilene 25 33 Mike Mauldin, Hereford 13 38 Mike Boyd, San Angelo 40 44 Tom O’Neil, Cleburne 18 36 Trent Swearengin, Stephenville 16 18 Jay Gibbs, Weatherford 14 42 Mark Jones, Southlake 15 38 Ken Williamson, M
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Slide 7: Independent Public Auditors
Independent Public Auditors 6
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Slide 9: Board of Directors
Board of Directors Years as Board Member Committee Appointment April Anthony Chief Executive Officer Encompass Home Health and Hospice & Homecare Homebase 1 Audit Steven L. Beal Director and Former President and COO of Concho Resources Inc. 6 Executive Compensation Nominating / Corporate Governance
Slide 10: Board of Directors
Board of Directors Years as Board Member Committee Appointment Ron Giddiens G&G Investments 7 Audit Tim Lancaster President and CEO Hedrick Health System 3 Audit Kade L. Matthews Ranching and Investments 18 Compensation Ross H. Smith, Jr. Chairman and President Akrotex, Inc. 2 Compensation Johnny E.
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Slide 12: Forward Looking Statement
Forward Looking Statement The numbers, as of and for the three months ended March 31, 2016, 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: 2015 Financial Review
2015 Financial Review
Slide 14: Earnings
Earnings
Slide 15: 29th Consecutive Year of Increased Earnings
29th Consecutive Year of Increased Earnings FFIN Earnings (in millions)
Slide 16: Strong Shareholder Earnings
Strong Shareholder Earnings Basic Earnings Per Share *Per share amounts reflect the 2 for 1 stock split that was effective June 2, 2014.
Slide 17: Working Harder and Smarter: Efficiency Ratio
2010 2011 2012 2013 2014 2015 First Financial 49.49% 48.37% 48.14% 50.20% 49.24% 47.61% Peer Group 67.33% 65.57% 65.77% 67.80% 66.84% 63.87% Working Harder and Smarter Efficiency Ratio (FFIN vs. Peers)
Slide 18: Net Interest Margin
Net Interest Margin Quarterly Interest Margin
Slide 19: FFIN Outperforms Peers
FFIN Outperforms Peers Percentage Return on Average Assets Peer Group First Financial
Slide 20: Strong Return on Capital
Strong Return on Capital Percentage Return on Average Equity Peer Group First Financial
Slide 21: Capital Ratios
Capital Ratios 20 12-31-15 03-31-16 To meet Requirements of BASEL III for 2016 Tier 1 Leverage Ratio 9.96 10.23 > 4.000 Common Equity Tier 1 Capital Ratio 15.90 16.46 > 5.125 Tier 1 Capital Ratio 15.90 16.46 > 6.000 Total Capital Ratio 16.97 17.60 > 8.000
Slide 22: Growth in Total Assets
Growth in Total Assets Asset Performance (in millions)
Slide 23: Loan Performance
Loan Performance Growth in FFIN Total Loans (in millions) $1,691 $1,787 $2,089 $3,351 $2,689 $2,938
Slide 24: Sound Lending Practices
2010 2011 2012 2013 2014 2015 First Financial 1.53% 1.64% 1.22% 1.16% 0.74% 0.89% Peer Group 5.37% 4.59% 3.67% 2.71% 1.92% 1.29% Sound Lending Practices Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)
Slide 25: Deposit Growth
Deposit Growth Growth in FFIN Total Deposits (in millions) $5,190 $3,113 $3,335 $3,633 $4,135 $4,750
Slide 26: 1st Quarter 2016 Summary
1st Quarter 2016 Summary
Slide 27: 1st Quarter Earnings
1st Quarter Earnings (in millions) FFIN Earnings 26
Slide 28: Shareholder Earnings – 1st Quarter
Shareholder Earnings – 1st Quarter Basic Earnings Per Share 27
Slide 29: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST: ASSET MANAGEMENT COMPANY. NA
Slide 30: Growth in Trust Assets
Growth in Trust Assets Total Trust Assets Market Value Book Value
Slide 31: Growth in Mineral Management
Growth in Mineral Management Revenue from Mineral Management (in thousands) 30
Slide 32: Total Trust Fees
Total Trust Fees Growth in FFTAM Fees (in thousands)
Slide 33: Total Trust Net Income
Total Trust Net Income Growth in FFTAM Net Income (in thousands)
Slide 34: Managed Equity Styles
Managed Equity Styles Equity Income Core Domestic Core Diversified Core World Strategic Growth 33
Slide 35: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST: ASSET MANAGEMENT COMPANY. NA
Slide 36: First Financial Trust & Asset Management Locations
First Financial Trust & Asset Management Locations
Slide 37: Board of Directors – First Financial Trust & Asset Management
David Copeland President, Shelton Family Foundation F. Scott Dueser President, First Financial Bankshares, Inc. John L. Beckham Beckham Rector & Eargle, LLP Jay Lawrence President, MAL Enterprises, Inc. David F. Lupton President, Angelo Glass & Mirror Company, Inc. Sarah Campbell Portfolio Manager W
Slide 38: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST: ASSET MANAGEMENT COMPANY. NA
Slide 39: Book Value of Assets
1,100 1,000 First Financial Trust & Asset Management Company NA Book Value of Assets 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 40: First Financial Trust & Asset Management Company
F RST FINANCIAL TRUST: ASSET MANAGEMENT COMPANY. NA
Slide 41: #2 in the Nation by Bank Director Magazine
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Slide 43: Recognitions – Elder Exploitative Initiative
Recognitions – Elder Exploitative Initiative ABA Foundation Community Commitment Award – November 2015 Texas Bankers Association 2016 Leaders in Financial Education Award – May 2016 2016 Leaders in Financial Education Award – July 2015 White House Conference on Aging AARP Roundtable Discussion – Nov
Slide 44: 29th Consecutive Year of Increased Earnings
29th Consecutive Year of Increased Earnings FFIN Earnings (in millions)
Slide 45: First Bank, N.A. - Conroe Acquisition
First Bank, N.A. - Conroe Acquisition Consummated July 31, 2015 Montgomery, Walker, & Harris Counties (On I-45 North of Houston) Exxon Mobil Headquarters in the Woodlands Montgomery County – Approximately 500,000 residents, 55% growth from 2000 to 2010, 24th fastest growing county in the United Stat
Slide 46: 4Trust Mortgage Acquisition
4Trust Mortgage Acquisition Consummated – May 31, 2015 Originated $175 million in mortgage loans in 2014 – Compared to $225 million that First Financial Bank originated in 2014 15 year old Company with offices in Fort Worth, Dallas and North Richland Hills $1.9 million purchase price Troy Fore is no
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Slide 48: Fort Worth – Forest Park Blvd. and Rosedale
Fort Worth – Forest Park Blvd. and Rosedale
Slide 49: Fort Worth – Forest Park Blvd. and Rosedale
Fort Worth – Forest Park Blvd. and Rosedale
Slide 50: Fort Worth Advisory Board of Directors
Fort Worth Advisory Board of Directors Murray Edwards, Chairman – Principal, The Edwards Group Larry Anfin – K&L Enterprises, Inc. Smith A. Brownlie III – Brownlie & Braden Ron Butler II – Chief Administrative Officer, First Financial Bankshares, Inc. Mary Lee Cruz – E Source Stephen Kimmel – CFO, C
Slide 51: Cisco – 2006 Conrad Hilton Blvd.
Cisco – 2006 Conrad Hilton Blvd. 50
Slide 52: Cisco – 2006 Conrad Hilton Blvd.
Cisco – 2006 Conrad Hilton Blvd. 51
Slide 53: Odessa – 3555 Billy Hext Rd.
Odessa – 3555 Billy Hext Rd. 52
Slide 54: Odessa – 3555 Billy Hext Rd.
Odessa – 3555 Billy Hext Rd. 53
Slide 55: Weatherford Main – Previous Location
Weatherford Main – Previous Location
Slide 56: Weatherford – Remodeled College Park
Weatherford – Remodeled College Park 55
Slide 57: San Angelo Main – Previous Downtown Location
San Angelo Main – Previous Downtown Location 56
Slide 58: San Angelo – New Downtown Location
San Angelo – New Downtown Location 57
Slide 59: Orange Main – Current Downtown Location
Orange Main – Current Downtown Location 56
Slide 60: Management Enhancements
Management Enhancements January 2015 – Stan Limerick, Executive Vice President and Chief Information Officer May 2015 – Randy Roewe, Executive Vice President and Chief Risk Officer June 2015 – Troy Fore, President of First Financial Bank Mortgage Division July 2015 – Martin Noto, President of Fort W
Slide 61: Return on 1,000 Shares of FFIN Stock
Stock cost in January 2015 $29,880 Dividend declared ($0.62 x 1,000 shares) $ 620 Increase in stock price during 2015 ($29.88 to $30.17 X 1,000 shares) $290 2015 return on investment 3.05% 2014 return on investment -7.96% 2013 return on investment 72.11% 2012 return on investment 19.65% 2011 return
Slide 62: Strong Stock Performance
Strong Stock Performance 200.00% 150.00% 100.00% 50.00% 0.00% + -50.00% ~ -100.00%
Slide 63: Dividends Per Share
Dividends Per Share Annual Dividends Declared Per Share* *Per share amounts reflect the 2 for 1 stock split that was effective June 2, 2014.
Slide 64: Increased Cash Dividend
Increased Cash Dividend Increase cash Dividend by $0.02 to $0.18 per quarter – 12.5% increase 2016 Dividend will be $0.70 Annualized Dividend will be $0.72 Shareholders of record as of June 16, 2016 Dividend payable July 1, 2016 61
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