2012 Annual Shareholder Meeting
Senior Management at First Financial                                                  Years with Company   Years in Indust...
Experienced Bank CEOs & Presidents                                                  Years with Company   Years in Industry...
Doyle Lee – Retiring CEO of Weatherford
Board of Directors                                                   Years as Board              Committee                ...
Board of Directors                                                   Years as Board             Committee                 ...
Independent Public Auditors
Mrs. Dian Graves Stai – 19 Years of Dedicated Service
Forward Looking Statement  The numbers, as of and for the three months ended March 31, 2012, contained within this present...
2011 Financial Review
Earnings
25th Consecutive Year of Increased Earnings    FFIN Earnings                             (in millions)                    ...
Strong Shareholder Earnings    Basic Earnings Per Share                                               $2.17               ...
Working Harder and SmarterEfficiency Ratio                                         (FFIN vs. Peers)             2005     2...
Net Interest MarginQuarterly Interest Margin 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00%          3rd      4th  ...
FFIN Outperforms Peers    Percentage Return on Average Assets   1.80%                                             1.74%   ...
Strong Return on Capital    Percentage Return on Average Equity    16.15% 16.20%                                          ...
Capital Ratios                                                 To be considered                           12-31-11   03-31...
Asset Performance   Growth in Total Assets                        (in millions)                                           ...
Loan Performance               Growth in FFIN Total Loans                           (in millions)                         ...
Sound Lending PracticesNonperforming assets as a percentage of loans + foreclosed assets    (FFIN vs. Peers)              ...
Deposit Growth   Growth in FFIN Total Deposits                             (in millions)                                  ...
1st Quarter 2012 Summary
1st Quarter Earnings    FFIN Earnings                              (in millions)                                          ...
Account Growth                            December 31, 2010   December 31, 2011   March 31, 2012 Total Number of Accounts ...
Shareholder Earnings – 1st Quarter    Basic Earnings Per Share                                               $0.56        ...
Growth in Trust Assets    Total Trust Assets – Book Value               (in millions)                                     ...
Total Trust Fees    Growth in FFTAM Fees                           (in thousands)                                         ...
Net Trust Income   Growth in FFTAM Income                    (in thousands)                                               ...
35
Trust Company Managers                                       Years with Company   Years in Industry     Richard Young, Abi...
Total Return on Investment   Assume you owned 1,000 shares of FFIN stock on January 1, 2011…     Stock cost in January 201...
Strong Stock Performance40.00%30.00%20.00%10.00% 0.00%-10.00%-20.00%-30.00%-40.00%-50.00%-60.00%   Jan . ‘07    Dec ‘07   ...
Recognitions KBW Honor Roll – One of Forty banks named – March 2012 SNL Financial #4 Best Performing Community Bank ($50...
Customer Service First   Ritz-Carlton Culture   Everything Speaks   Looking Through The Lens Of The Customer   Star Aw...
WOW!
WOW!
WOW!
WOW!
WOW’s        49
WOW’s        50
Recent De Novo Growth San Angelo: HEB Branch – Expected to Open 4th Qtr. 2012 Abilene: Southside Branch – Expected to Op...
Picture of Cisco – Trent is send Pic                            52
New Location - Grapevine                           53
54
Cleburne Main                55
Cleburne Ridgeway                    56
Trophy Club              57
Sweetwater             58
59
Sweetwater             60
Core Markets: West Central Texas        Markets served benefiting from well-established,         long- time customers    ...
Expansion Markets                                                                                DEPOSIT MARKET     MARKET...
63
Challenges    Regulatory reform from Washington    Keep nonperforming assets to a minimum    Maintain net interest marg...
Net Interest MarginQuarterly Interest Margin 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00%          3rd      4th  ...
Working Harder and SmarterEfficiency Ratio                                         (FFIN vs. Peers)             2005     2...
67
Opportunities   Loan Growth   Mortgage Lending   Trust Services   Treasury Management   Potential Acquisitions
Dividends Per Share   Annual Dividends Per Share                                                     $0.95                ...
Increase Cash Dividend Today $0.24 per share quarterly Increase cash divided to $0.25 per quarter – 4.2% increase Share...
www.ffin.com
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
Annual meeting 2012 final web version
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Annual meeting 2012 final web version

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Presentation delivered to the 2012 Annual Meeting of Shareholders at First Financial Bankshares, Inc., April 24, 2012, Abilene, Texas.

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Annual meeting 2012 final web version

  1. 1. 2012 Annual Shareholder Meeting
  2. 2. Senior Management at First Financial Years with Company Years in Industry Scott Dueser Chairman of the Board, President & 36 41 Chief Executive Officer J. Bruce Hildebrand, CPA Executive Vice President 9 33 Chief Financial Officer Gary L. Webb Executive Vice President 9 23 Operations Gary S. Gragg Executive Vice President 21 33 Credit Administration Marna Yerigan Executive Vice President 1 28 Credit Administration Michele Stevens Senior Vice President 15 31 Advertising and Marketing Courtney Jordan Senior Vice President 3 18 Training & Education Kirk Thaxton, CTFA President, First Financial Trust & Asset 25 29 Management
  3. 3. Experienced Bank CEOs & Presidents Years with Company Years in Industry Ron Butler, FFB Abilene 19 30 Mike Mauldin, FFB Hereford 9 34 Kirby Andrews, FFB Sweetwater 21 24 Trent Swearengin, FFB Eastland 13 13 Mike Boyd, FFB San Angelo 36 40 Tom O’Neil, FFB Cleburne 13 32 Matt Reynolds, FFB Cleburne 7 30 Ron Mullins, FFB Stephenville 6 33 Doyle Lee, FFB Weatherford 16 39 Jay Gibbs, FFB Weatherford 10 37 Mark Jones, FFB Southlake 11 34 Ken Williamson, FFB Mineral Wells 10 40 Robert Pate, FFB Huntsville 14 31 Gary Tucker, First Technology Services 21 37 3
  4. 4. Doyle Lee – Retiring CEO of Weatherford
  5. 5. Board of Directors Years as Board Committee Member Appointment Steven L. Beal Director and Former President and COO of 2 Audit / Compensation Concho Resources Inc. Lead Director / Executive Tucker S. Bridwell President, Mansefeldt Investment Corporation 5 Audit / Nominating/ Corporate Governance Joseph E. Canon Executive Director, Dodge Jones Foundation 16 Compensation Executive David Copeland President, SIPCO, Inc. and 14 Audit Shelton Family Foundation Nominating/Corporate Governance F. Scott Dueser Chairman of the Board, President and CEO 21 Executive Murray Edwards Executive / Audit / Nominating/ Principal, The Edwards Group 6 Corporate Governance
  6. 6. Board of Directors Years as Board Committee Member Appointment Ron Giddiens 3 Audit G&G Investments Kade L. Matthews Ranching and Investments 14 Compensation Executive Johnny E. Trotter President and CEO Livestock Investors, Ltd. 9 Compensation Nominating/Corporate Governance
  7. 7. Independent Public Auditors
  8. 8. Mrs. Dian Graves Stai – 19 Years of Dedicated Service
  9. 9. Forward Looking Statement The numbers, as of and for the three months ended March 31, 2012, 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 statements are based upon the belief of the Company’s management, as well as assumptions made beyond information currently available to the Company’s management and, may be, but not necessarily are identified by such words as “expect”, “plan”, “anticipate”, “target”, “forecast” and “goal”. Because such “forward-looking statements” are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, 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 monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company’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 Company at 325.627.7155. The Company does not undertake any obligation to update publicly or revise any forward-looking statements herein because of new information, future events or otherwise.
  10. 10. 2011 Financial Review
  11. 11. Earnings
  12. 12. 25th Consecutive Year of Increased Earnings FFIN Earnings (in millions) $68.4 $59.7 $1.3 $53.1 $53.8 $49.5 $46.0 2006 2007 2008 2009 2010 2011
  13. 13. Strong Shareholder Earnings Basic Earnings Per Share $2.17 $1.91 $0.04 $1.71 $1.72 $1.59 $1.48 2006 2007 2008 2009 2010 2011
  14. 14. Working Harder and SmarterEfficiency Ratio (FFIN vs. Peers) 2005 2006 2007 2008 2009 2010 2011 FirstFinancial 52.48% 53.57% 52.83% 50.76% 50.11% 49.49% 48.37%Peer Group 60.12% 61.29% 63.12% 68.12% 69.53% 67.32% 65.86%
  15. 15. Net Interest MarginQuarterly Interest Margin 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th Qtr. 08Qtr. 08Qtr. 09Qtr. 09Qtr. 09Qtr. 09Qtr. 10Qtr. 10Qtr. 10Qtr. 10Qtr. 11Qtr. 11Qtr. 11Qtr. 11 First Financial Peer Group
  16. 16. FFIN Outperforms Peers Percentage Return on Average Assets 1.80% 1.74% 1.78% 1.72% 1.72% 1.75% 1.68% 1.15% 1.10% 0.87% 0.80% First Financial Peer Group 0.25% -0.03% -0.18% 2005 2006 2007 2008 2009 2010 2011
  17. 17. Strong Return on Capital Percentage Return on Average Equity 16.15% 16.20% 15.87% 15.27% 14.44% 13.33% 13.63% 13.74% 12.61% 9.45% 7.26% First Financial Peer Group 1.16% -1.83% -2.57% 2005 2006 2007 2008 2009 2010 2011
  18. 18. Capital Ratios To be considered 12-31-11 03-31-12 well Capitalized Tier 1 10.33 10.31 > 5.00 Leverage Ratio Tier 1 Risk 17.49 17.73 > 6.00 Based Capital Ratio Risk Based 18.74 18.99 > 10.00 Capital Ratio
  19. 19. Asset Performance Growth in Total Assets (in millions) $4,121 $3,776 $3,212 $3,279 $3,070 $2,850 2006 2007 2008 2009 2010 2011
  20. 20. Loan Performance Growth in FFIN Total Loans (in millions) $1,787 $1,690Real Estate $1,528 $1,566 $1,514 $1,373Commercial $1,289 $1,076 $990 $836 $855 $860Student $760 $677Consumer $394 $391 $429 $427 $330 $344 $406Agricultural $37 $31 $32 $52 $0 $160 $165 $182 $191 $175 $191 $218 $85 $73 $84 $77 $73 $81 $66 2005 2006 2007 2008 2009 2010 2011
  21. 21. Sound Lending PracticesNonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers) 2006 2007 2008 2009 2010 2011 FirstFinancial 0.30% 0.31% 0.80% 1.46% 1.53% 1.64%Peer Group 0.60% 0.98% 2.63% 5.41% 5.38% 4.66%
  22. 22. Deposit Growth Growth in FFIN Total Deposits (in millions) $3,335 $3,113 $2,685 $2,546 $2,583 $2,384 $2,233 $2,154 $1,786 $1,849 $1,807 $1,699 $1,102 $685 $739 $797 $836 $959 2006 2007 2008 2009 2010 2011 Non Interest Bearing Interest Bearing
  23. 23. 1st Quarter 2012 Summary
  24. 24. 1st Quarter Earnings FFIN Earnings (in millions) $17.8 $16.3 $13.7 $13.7 $13.2 $11.5 2007 2008 2009 2010 2011 2012
  25. 25. Account Growth December 31, 2010 December 31, 2011 March 31, 2012 Total Number of Accounts 200,027 204,063 206,546 Net Growth in 2011 – 4,036 Accounts New Growth in 2012 – 2,483 Accounts
  26. 26. Shareholder Earnings – 1st Quarter Basic Earnings Per Share $0.56 $0.52 $0.42 $0.44 $0.44 $0.37 2007 2008 2009 2010 2011 2012
  27. 27. Growth in Trust Assets Total Trust Assets – Book Value (in millions) $1,912 $1,784 $1,631 $1,664 $1,428 $1,300 2006 2007 2008 2009 2010 2011
  28. 28. Total Trust Fees Growth in FFTAM Fees (in thousands) $12,671 $10,809 $9,441 $9,083 $8,746 $7,665 2006 2007 2008 2009 2010 2011
  29. 29. Net Trust Income Growth in FFTAM Income (in thousands) $4,176 $3,254 $2,810 $2,549 $2,631 $2,076 2006 2007 2008 2009 2010 2011
  30. 30. 35
  31. 31. Trust Company Managers Years with Company Years in Industry Richard Young, Abilene 15 25 David Byrd, San Angelo 14 35 Konrad Halbert, Fort Worth 7 16 David Castleberry, Stephenville 7 10 Barbara Hill, Odessa 3 33 Wayne Chowning, Sweetwater 1 12
  32. 32. Total Return on Investment Assume you owned 1,000 shares of FFIN stock on January 1, 2011… Stock cost in January 2011 $34,170 Dividend received ($0.95 x 1,000 shares) $ 950 Decrease in stock price during 2011 ($740) $2210,720 ($34.17 to $33.43 X 1,000 shares) 2011 return on investment 0.61% 2010 return on investment -2.99% 2009 return on investment 0.69% 2008 return on investment 50.20% 2007 return on investment -7.05% 5 year compound average return 6.32%
  33. 33. Strong Stock Performance40.00%30.00%20.00%10.00% 0.00%-10.00%-20.00%-30.00%-40.00%-50.00%-60.00% Jan . ‘07 Dec ‘07 Dec ‘08 Dec . ‘09 Dec. ‘10 Dec. ’11 Mar. ’12 FFIN S&P 500 NASDAQ Dow Jones
  34. 34. Recognitions KBW Honor Roll – One of Forty banks named – March 2012 SNL Financial #4 Best Performing Community Bank ($500M - $5B) – March 2012 Nifty 50: Bank Director Magazine - #2 – Based on Return on Equity / Average Tangible Equity Ranked #2 in Texas and #7 in the United States by J.D. Power and Associates 2011 Retail Banking Customer Satisfaction Study – April 2011 Bank Intelligence Proven Performers - #4 in the Nation in $1 - $10 billion category – June 2011
  35. 35. Customer Service First Ritz-Carlton Culture Everything Speaks Looking Through The Lens Of The Customer Star Awards Shining Stars WOWs 44
  36. 36. WOW!
  37. 37. WOW!
  38. 38. WOW!
  39. 39. WOW!
  40. 40. WOW’s 49
  41. 41. WOW’s 50
  42. 42. Recent De Novo Growth San Angelo: HEB Branch – Expected to Open 4th Qtr. 2012 Abilene: Southside Branch – Expected to Open 4th Qtr. 2012 Grapevine: Branch of Southlake – March 2012 Cisco: Branch of Eastland – September 2011 Lamesa: Office of Trust Company – April 2011 Crowley: Branch of Cleburne – October 2010 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
  43. 43. Picture of Cisco – Trent is send Pic 52
  44. 44. New Location - Grapevine 53
  45. 45. 54
  46. 46. Cleburne Main 55
  47. 47. Cleburne Ridgeway 56
  48. 48. Trophy Club 57
  49. 49. Sweetwater 58
  50. 50. 59
  51. 51. Sweetwater 60
  52. 52. Core Markets: West Central Texas  Markets served benefiting from well-established, long- time customers ASSET DEPOSIT MARKETBANK LOCATIONS SIZE* MARKET SHARE** SHARE RANK**First Financial Bank $1,443 M 14 41% 1(Abilene, Clyde, Moran, Albany, Odessa)First Financial Bank $166 M 1 42% 1(Hereford)First Financial Bank $206M 4 55% 1(Eastland, Ranger, Rising Star, Cisco)First Financial Bank $184 M 4 37% 1(Sweetwater, Roby, Trent, Merkel)First Financial Bank $431M 2 20% 2(San Angelo)TOTALS $2,430M 25 * Data as of 03-31-12 ** Data as of 06-30-11 61
  53. 53. Expansion Markets DEPOSIT MARKET MARKET SHAREBANK ASSET SIZE* LOCATIONS SHARE** RANK**First Financial Bank $315 M 6 21% 1(Cleburne, Burleson, Alvarado, Midlothian, Crowley)First Financial Bank $325 M 4 8% 5 (Southlake, Trophy Club, Keller, Grapevine 3 16% 3 Bridgeport, Decatur, Boyd)First Financial Bank $378 M 6 21% 2 (Stephenville, Granbury, Glen Rose, Acton)First Financial Bank $396 M 7 24% 1(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)First Financial Bank $217 M 1 35% 1(Mineral Wells)First Financial Bank $179 M 1 21% 2(Huntsville) * Data as of 03-31-12TOTALS $1,810M 28 ** Data as of 06-30-11 62
  54. 54. 63
  55. 55. Challenges  Regulatory reform from Washington  Keep nonperforming assets to a minimum  Maintain net interest margin  Lower efficiency ratio
  56. 56. Net Interest MarginQuarterly Interest Margin 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th Qtr. 08Qtr. 08Qtr. 09Qtr. 09Qtr. 09Qtr. 09Qtr. 10Qtr. 10Qtr. 10Qtr. 10Qtr. 11Qtr. 11Qtr. 11Qtr. 11 First Financial Peer Group
  57. 57. Working Harder and SmarterEfficiency Ratio (FFIN vs. Peers) 2005 2006 2007 2008 2009 2010 2011 FirstFinancial 52.48% 53.57% 52.83% 50.76% 50.11% 49.49% 48.37%Peer Group 60.12% 61.29% 63.12% 68.12% 69.53% 67.32% 65.86%
  58. 58. 67
  59. 59. Opportunities  Loan Growth  Mortgage Lending  Trust Services  Treasury Management  Potential Acquisitions
  60. 60. Dividends Per Share Annual Dividends Per Share $0.95 $0.89 $0.91 $0.91 $0.84 $0.79 $0.73 2005 2006 2007 2008 2009 2010 2011
  61. 61. Increase Cash Dividend Today $0.24 per share quarterly Increase cash divided to $0.25 per quarter – 4.2% increase Shareholders of record as of June 15, 2012 Dividend payable July 2, 2012
  62. 62. www.ffin.com

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