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First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
First Financial Bankshares presentation 1st qtr 2013
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First Financial Bankshares presentation 1st qtr 2013

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  • Main focus should be on years in the industry – You have world-class talent.
  • Main focus should be on years in the industry – You have world-class talent.
  • Transcript

    • 1. 1st Quarter 2013
    • 2. Forward Looking StatementThe numbers, as of and for the quarter ended March 31, 2013, contained within this presentation areunaudited. Certain statements contained herein may be considered “forward-looking statements” asdefined in the Private Securities Litigation Reform Act of 1995. These statements are based upon thebelief of the Company’s management, as well as assumptions made beyond information currentlyavailable to the Company’s management and, may be, but not necessarily are identified by such wordsas “expect”, “plan”, “anticipate”, “target”, “forecast” and “goal”. Because such “forward-lookingstatements” are subject to risks and uncertainties, actual results may differ materially from thoseexpressed or implied by such forward-looking statements. Factors that could cause actual results todiffer materially from the Company’s expectations include competition from other financial institutionsand financial holding companies; the effects of and changes in trade, monetary and fiscal policies andlaws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans;fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetaryfluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions andintegration of acquired businesses, and similar variables. Other key risks are described in theCompany’s reports filed with the Securities and Exchange Commission, which may be obtained under“Investor Relations-Documents/Filings” on the Company’s web site or by writing or calling the Companyat 325.627.7155. The Company does not undertake any obligation to update publicly or revise anyforward-looking statements herein because of new information, future events or otherwise.
    • 3. 2Who We Are$4.5 billion financial holding companyheadquartered in Abilene, TexasGroup of 11 separate regions122-year historyGrowth markets include 50 mile radius ofthe larger cities of Texas
    • 4. 3
    • 5. 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 onEquity / Average Tangible Equity – January 2013 American Banker - #19 – Based on three year average Return onEquity – August 2012 ABA Banking Journal - #13 – Top Performing mid-sized banks($1B - $10B) – May 20124
    • 6. 5What Makes Us DifferentOne Bank, Eleven Regions Concept One Bank Consolidation of backroom operations and compliance (lowerefficiency ratio) Eleven Regions Regional Presidents run their regions Local Boards – Movers and Shakers of the Community Keep our regions locally focused Make sure we meet the needs of the community Help us make better loan decisions Help us market the region
    • 7. 6FFIN’s Unique Positioning in TexasBank Key MarketsBBVA Compass Rio Grande, Gulf Coast, Houston, Dallas, El Paso, LubbockComerica, Inc. DFW, Austin, Houston, California, Michigan, Florida, MexicoFrost San Antonio, Austin, Corpus Christi, DFW, Rio GrandeInternational Bancshares Corp. Rio Grande, Houston, San Antonio, OklahomaProsperity Houston, DFW, AustinSouthside East TexasTexas Capital DFW, Austin, San Antonio and HoustonViewPoint Financial DallasZion DFW and Houston
    • 8. 7Orange 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 terminals and recent investment from largeFortune 500 Companies, such as Exxon Mobil, DuPont and Goodyear $443.8 million in Assets* $381.1 million in deposits $295.9 million in loans Approximately 1.3x book; 13x last twelve months earnings (tax effected) Orange acquisition is consistent with our acquisition model of high growth areasand along the Interstates Provides Diversification #1 Market Share in Orange County – 40%, more than twice the nearest competitor*As of Dec. 31, 2012
    • 9. 88
    • 10. 9Texas: Large and GrowingFive most populous states:* Growth(2000 – 2011)California 37.7 million 11.3%Texas 25.7 million 23.7%New York 19.5 million 2.6%Florida 19.1 million 19.2%Illinois 12.9 million 3.6%* U.S. Census Bureau
    • 11. 10Target Markets – Population GrowthPopulation growth (2000-2011) in FFIN expansion markets:*Texas 23.1%Bridgeport & Wise County 22.6%Fort Worth & Tarrant County 27.9%Cleburne, Midlothian & Johnson County 20.5%Weatherford, Willow Park, Aledo & Parker County 33.7%Granbury & Hood County 25.7%Stephenville & Erath County 15.9%* U.S. Census Bureau
    • 12. 11Texas BenefitsCEO Magazine ranks Texas best state forbusiness – for seventh consecutive yearTexas created more jobs (230,800) in 2010 morethan any other stateTexas created more private sector jobs than anyother state during the past decade
    • 13. Core Markets: West Central Texas Markets served benefiting from well-established,long- time customersREGIONASSETSIZE*LOCATIONSDEPOSITMARKET SHARE**MARKETSHARE RANK**First Financial Bank(Abilene, Clyde, Moran, Albany, Odessa)$1,531 M 15 43% 1First Financial Bank(Hereford)$166 M 1 43% 1First Financial Bank(Eastland, Ranger, Rising Star, Cisco)$228M 4 58% 1First Financial Bank(Sweetwater, Roby, Trent, Merkel)$188 M 4 34% 1First Financial Bank(San Angelo)$462M 3 19% 2TOTALS $2,575M 27 * Data as of 03-31-13** Data as of 06-30-12
    • 14. Expansion MarketsREGION ASSET SIZE* LOCATIONSDEPOSIT MARKETSHARE**MARKET SHARERANK**First Financial Bank(Cleburne, Burleson, Alvarado, Midlothian,Waxahachie)$344 M 6 22% 1First Financial Bank(Southlake, Trophy Club, Keller, GrapevineBridgeport, Decatur, Boyd)$355 M 437%16%53First Financial Bank(Stephenville, Granbury, Glen Rose, Acton)$392 M 6 22% 2First Financial Bank(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)$424 M 7 24% 1First Financial Bank(Mineral Wells)$215 M 1 34% 1First Financial Bank(Huntsville)$177 M 1 20% 2TOTALS $1,907 28* Data as of 03-31-13** Data as of 06-30-12
    • 15. Recent De Novo Growth Weatherford – I-20 Branch – Expected to Open 2nd 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 Lamesa: Office of Trust Company – April 2011 Odessa: Branch of Abilene – February 2010 Fort Worth: Branch of Weatherford – February 2010 Odessa: Office of Trust Company – April 2009 Merkel: Branch of Sweetwater – July 2008 Brock: Branch of Weatherford – March 2008 Acton: Branch of Stephenville – March 2008 Albany: Branch of Abilene – May 2007 Fort Worth: Office of Trust Company – April 2007
    • 16. Years with Company Years in IndustryScott DueserChairman of the Board, President &Chief Executive Officer37 42J. Bruce Hildebrand, CPAExecutive Vice PresidentChief Financial Officer10 34Gary L. WebbExecutive Vice PresidentOperations10 24Gary S. GraggExecutive Vice PresidentCredit Administration22 34Marna YeriganExecutive Vice PresidentCredit Administration2 29Ron ButlerExecutive Vice PresidentChief Administrative Officer19 31Senior Management at First Financial
    • 17. Years with Company Years in IndustryMichele StevensSenior Vice PresidentAdvertising and Marketing37 42Courtney JordanSenior Vice PresidentTraining10 34Bob GoodnerSenior Vice President & Compliance OfficerCompliance12 35Luke LonghoferSenior Vice President & Loan Review OfficerCredit Administration3 10Brandon HarrisSenior Vice PresidentAppraisal Services1 15Kirk Thaxton, CTFAPresident, First Financial Trust & AssetManagement26 30Senior Management at First Financial
    • 18. Experienced Regional CEOs & PresidentsYears with Company Years in IndustryMarelyn Shedd, Abilene 22 30Mike Mauldin, Hereford 10 35Kirby Andrews, Sweetwater 22 25Trent Swearengin, Eastland 13 15Mike Boyd, San Angelo 37 41Tom O’Neil, Cleburne 15 33Matt Reynolds, Cleburne 8 31Ron Mullins, Stephenville 7 35Jay Gibbs, Weatherford 11 39Mark Jones, Southlake 12 35Ken Williamson, Mineral Wells 11 42Robert Pate, Huntsville 16 32Fred Wren, Huntsville 1 34Gary Tucker, First Technology Services 22 3817
    • 19. 18$3,212 $3,279$3,776$4,121$4,500 $4,456*2008 2009 2010 2011 2012 2013Growth in Total AssetsAsset Performance(in millions)*As of March 31, 2013
    • 20. 19$797 $836 $959 $1,102 $1,312 $1,238$1,786 $1,849$2,154$2,233$2,321 $2,3122008 2009 2010 2011 2012 2013Non Interest Bearing Interest BearingDeposit GrowthGrowth in FFIN Total Deposits (in millions)$3,550*$2,583 $2,685$3,113$3,335$3,633*As of March 31, 2013
    • 21. 20Deposit ProductsTime17.5%Demand34.9%MoneyMarket37.4%Savings10.2%*As of March 31, 2013
    • 22. Account GrowthNet Growth in 2011 – 4,036 AccountsNet Growth in 2012 – 1,219 AccountsNew Growth in 2013 – 1,139 AccountsDecember31, 2010December31, 2011December31, 2012March31, 2013Total Number ofAccounts200,027 204,063 205,282 206,421
    • 23. $84 $77 $73 $81 $66 $68 $55$182 $191 $175 $191 $218 $273 $284$32 $52 $0$394 $391$406 $429 $427$510 $512$836 $855$860$990 $1,076$1,238 $1,2872007 2008 2009 2010 2011 2012 2013Real EstateCommercialStudentConsumerAgriculturalLoan PerformanceGrowth in FFIN Total Loans (in millions)$1,566$1,514$1,690$1,787$1,528$2,138*22*As of March 31, 2013$2,089
    • 24. 23Overview of Loan PortfolioCommercial23.9%Agriculture2.6%Consumer13.3%Real Estate60.2%*As of March 31, 2013
    • 25. ResidentialDevelopment &Construction5.7%1-4 Family43.6%CommercialDevelopment andConstruction3.9%Commercial R/E28.2%Other R/E18.6%24Breakdown of R/E Loan Portfolio*As of March 31, 2013
    • 26. 252007 2008 2009 2010 2011 2012 2013*End ofPeriod 60.0 60.6 56.4 54.3 53.6 57.5 60.2AverageBalances59.8 61.1 59.5 56.0 54.6 56.4 59.9Loan to Deposit Ratio*As of March 31, 2012
    • 27. 26Less than1 year1 to 3years3 to 5years5 to 10years10 to 15yearsOver 15years34.3% 9.1% 14.5% 20.7% 9.1% 8.5% 3.8%Variable and Fixed Rate LoansLoan Portfolio Interest Rate Risk AnalysisVariableRateFixed Rate*As of March 31, 2013
    • 28. 2008 2009 2010 2011 2012 2013*FirstFinancial 0.80% 1.46% 1.53% 1.64% 1.22% 1.20%Peer Group 2.63% 5.41% 5.37% 4.64% 3.70% -Sound Lending PracticesNonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)27*As of March 31, 2013
    • 29. 28$17,462$21,529$27,612$31,106$34,315 $34,839 $34,672$2,331$7,957$11,419$8,962$6,626$3,484$4012007 2008 2009 2010 2011 2012 2013ALLL ProvisionAllowance for Loan Losses and Provision for Loan Losses(in thousands)*As of March 31, 2013
    • 30. Summary of Bond PortfolioAgencies10.33%Corporates5.58%Muni46.15%MBSs10.37%CMOs27.23%Treasuries0.34%29*As of March 31, 2013
    • 31. Municipal Allocation by StateState PercentageTexas 65.94%Michigan 3.71%Wisconsin 3.06%Illinois 2.18%Washington 2.13%Massachusetts 1.84%New Jersey 1.77%Florida 1.69%Ohio 1.68%Louisiana 1.27%Utah 1.25%Kentucky 1.04%Other 38 states 12.44%30*As of March 31, 2013
    • 32. 31$1,631 $1,664$1,784$1,912$2,031$2,274*2008 2009 2010 2011 2012 2013Growth in Trust AssetsTotal Trust Assets – Book Value (in millions)*As of March 31, 2013
    • 33. 32$9,441 $9,083$10,808$12,617$14,464$2,369 $2,117 $2,526$3,044 $3,454 $3,7932008 2009 2010 2011 2012 2013thruMarch 31stTotal Trust FeesGrowth in FFTAM Fees (Full year and 1st 3 months) (in thousands)
    • 34. $53.1 $53.8$59.7$68.4$74.2$13.2 $13.7 $13.7$16.3 $17.8 $18.62008 2009 2010 2011 2012 201326th Consecutive Year of Increased EarningsFFIN Earnings (Full year and 1st 3 months) (in millions)33thruMarch 31st
    • 35. 34$1.71 $1.72$1.91$2.17$2.36$0.42 $0.44 $0.44$0.52 $0.56 $0.592008 2009 2010 2011 2012 2013Strong Shareholder EarningsBasic Earnings Per Share (Full year and 1st 3 months)thruMarch 31st
    • 36. 1.68% 1.72% 1.74% 1.72% 1.75% 1.78% 1.75%1.10%0.87%-0.03% -0.18%0.24%0.79%0.98%2006 2007 2008 2009 2010 2011 2012FFIN Outperforms PeersPercentage Return on Average AssetsPeerGroupFirstFinancial
    • 37. 16.20%15.87%15.27%13.63% 13.74%14.44%13.85%12.61%9.45%-1.83% -2.57%0.88%7.27%8.72%2006 2007 2008 2009 2010 2011 2012Strong Return on CapitalPercentage Return on Average EquityPeerGroupFirstFinancial
    • 38. 372009 2010 2011 2012 2013Shareholders’Equity 415,702 441,688 508,537 556,963 564,252As a Percent of TotalAssets12.68 11.70 12.34 12.37 12.66TangibleCapital352,550 369,164 436,415 484,990 492,289Tier 1Leverage Ratio10.69 10.28 10.33 10.60 10.69Tier 1 RiskBased Capital Ratio17.73 17.01 17.49 17.43 17.54Risk BasedCapital Ratio19.10 18.26 18.74 18.68 18.80Capital & Capital Ratios(dollars in thousands)
    • 39. 3.00%3.25%3.50%3.75%4.00%4.25%4.50%4.75%5.00%4thQtr. 091stQtr. 102ndQtr. 103rdQtr. 104thQtr. 101stQtr. 112ndQtr. 113rdQtr. 114thQtr. 111stQtr. 122ndQtr. 123rdQtr. 124thQtr. 121stQtr. 13First Financial Peer GroupNet Interest MarginQuarterly Interest Margin38
    • 40. 2007 2008 2009 2010 2011 2012 2013FirstFinancial 52.83% 50.76% 50.11% 49.49% 48.37% 48.14% 48.68%Peer Group 63.12% 68.12% 69.53% 67.33% 65.57% 65.75%* -Working Harder and SmarterEfficiency Ratio (FFIN vs. Peers)39**As of Dec. 31, 2012
    • 41. Stock cost in January 2012 $33,430Dividend declared ($0.99 x 1,000 shares) $ 990Increase in stock price during 2012($39.01 from $33.43 X 1,000 shares)$2210,7202012 return on investment 19.65%2011 return on investment 0.61%2010 return on investment -2.99%2009 return on investment 0.69%2008 return on investment 50.20%5 year compound average return 9.55%Total Return on Investment$5,580Assume you owned 1,000 shares of FFIN stock on January 1, 2012…40
    • 42. Dividends Per Share$0.79$0.84$0.89 $0.91 $0.91$0.95$0.992006 2007 2008 2009 2010 2011 2012Annual Dividends Declared Per Share41
    • 43. Strong Stock Performance-60.00%-40.00%-20.00%0.00%20.00%40.00%60.00%80.00%FFIN S&P 500 NASDAQ Dow JonesJan . ‘07 Mar. ’13Dec . ‘09Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11 Dec. ’1242
    • 44. ChallengesRegulatory reform from WashingtonStagnant national economyInept federal governmentLow interest rate environmentMaintaining net interest marginKeep nonperforming assets to a minimum
    • 45. Opportunities Loan Growth Mortgage Lending Trust Services Treasury Management Mobile Banking Lower Efficiency Ratio Potential Acquisitions
    • 46. www.ffin.com

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