4th Quarter 2012
Forward Looking Statement  The numbers, as of and for the year ended December 31, 2012, contained within this presentation...
Who We Are   $4.5 billion financial holding company    headquartered in Abilene, Texas   Group of 11 separate regions   ...
3
Recognitions KBW Honor Roll – One of Forty banks named – March 2012 SNL Financial #4 Best Performing Community Bank ($50...
What Makes Us Different One Bank, Eleven Regions Concept  One Bank    Consolidation of backroom operations and complianc...
FFIN’s Unique Positioning in TexasBank                             Key MarketsBBVA Compass                     Rio Grande,...
Orange Acquisition  Definitive Agreement Signed - February 2013  Orange, Jefferson and Newton Counties        Approxima...
Port Arthur Branch                     88
99
Texas: Large and Growing  Five most populous states:*            Growth                                          (2000 – 2...
Target Markets – Population GrowthPopulation growth (2000-2011) in FFIN expansion markets:*Texas                          ...
Core Markets: West Central Texas        Markets served benefiting from well-established,         long- time customers    ...
Expansion Markets                                                                                DEPOSIT MARKET     MARKET...
Recent De Novo Growth San Angelo: HEB Branch – Expected to Open 1st Qtr. 2013 Waxahachie: Branch of Cleburne – December ...
Senior Management at First Financial                                                   Years with Company   Years in Indus...
Experienced Regional CEOs & Presidents                                                   Years with Company   Years in Ind...
Asset Performance   Growth in Total Assets                             (in millions)                                      ...
Deposit Growth   Growth in FFIN Total Deposits                          (in millions)                                     ...
Deposit Products                            Time             Savings        17.5%              9.5%                       ...
Account Growth                           December 31, 2010        December 31, 2011   December 31, 2012Total Number of Acc...
Loan Performance               Growth in FFIN Total Loans                               (in millions)                     ...
Overview of Loan Portfolio                              Commercial                                24.3%                   ...
Breakdown of R/E Loan Portfolio                    Residential                  Development &                   Constructi...
Loan to Deposit Ratio           2006   2007   2008        2009   2010   2011   2012 End of Period    57.6   60.0   60.6   ...
Variable and Fixed Rate LoansLoan Portfolio Interest Rate Risk Analysis Variable                                          ...
Sound Lending PracticesNonperforming assets as a percentage of loans + foreclosed assets     (FFIN vs. Peers)             ...
Allowance for Loan Losses and Provision for Loan Losses                                                                   ...
Summary of Bond Portfolio                                     Corporates             Treasuries                6.26%      ...
Municipal Allocation by State                  State              Percentage                  Texas               64.48%  ...
Growth in Trust Assets    Total Trust Assets – Book Value                    (in millions)                                ...
Total Trust Fees    Growth in FFTAM Fees                            (in thousands)                                        ...
Trust Company Net Income    Growth in FFTAM Net Income                    (in thousands)                                  ...
26th Consecutive Year of Increased Earnings    FFIN Earnings                                  (in millions)               ...
Strong Shareholder Earnings    Basic Earnings Per Share                                                   $2.36           ...
FFIN Outperforms Peers    Percentage Return on Average Assets                                             1.74%     1.72% ...
Strong Return on Capital    Percentage Return on Average Equity    16.20%                                    15.87%       ...
Capital & Capital Ratios                                                             (dollars in thousands)               ...
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    1...
Working Harder and SmarterEfficiency Ratio                                             (FFIN vs. Peers)              2006 ...
Total Return on Investment   Assume you owned 1,000 shares of FFIN stock on January 1, 2012…     Stock cost in January 201...
Dividends Per Share   Annual Dividends Declared Per Share                                                     $0.99       ...
Strong Stock Performance50.00%40.00%30.00%20.00%10.00% 0.00%-10.00%-20.00%-30.00%-40.00%-50.00%-60.00%   Jan . ‘07    Dec ...
Challenges    Regulatory reform from Washington    Keep nonperforming assets to a minimum    Maintain net interest marg...
Opportunities   Loan Growth   Mortgage Lending   Trust Services   Treasury Management   Potential Acquisitions       ...
www.ffin.com
Upcoming SlideShare
Loading in …5
×

First financial Bankshares presentation 4th qtr 2012

584 views

Published on

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
584
On SlideShare
0
From Embeds
0
Number of Embeds
197
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Main focus should be on years in the industry – You have world-class talent.
  • First financial Bankshares presentation 4th qtr 2012

    1. 1. 4th Quarter 2012
    2. 2. Forward Looking Statement The numbers, as of and for the year ended December 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.
    3. 3. Who We Are $4.5 billion financial holding company headquartered in Abilene, Texas Group of 11 separate regions 122-year history Growth markets include 50 mile radius of the larger cities of Texas 2
    4. 4. 3
    5. 5. 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 – January 2012 4
    6. 6. What Makes Us Different One Bank, Eleven Regions Concept  One Bank  Consolidation of backroom operations and compliance (lower efficiency 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 5
    7. 7. FFIN’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, Austin, West TexasSouthside East TexasTexas Capital DFW, Austin, San Antonio and HoustonViewPoint Financial DallasZion DFW and Houston 6
    8. 8. 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 terminals and recent investment from large Fortune 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 areas and along the Interstates  Provides Diversification  #1 Market Share in Orange County – 40%, more than twice the nearest competitor *As of Dec. 31, 2012 7
    9. 9. Port Arthur Branch 88
    10. 10. 99
    11. 11. Texas: Large and Growing Five 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 10
    12. 12. Target 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 11
    13. 13. Core Markets: West Central Texas  Markets served benefiting from well-established, long- time customers ASSET DEPOSIT MARKETREGION LOCATIONS SIZE* MARKET SHARE** SHARE RANK**First Financial Bank $1,595 M 15 43% 1(Abilene, Clyde, Moran, Albany, Odessa)First Financial Bank $184 M 1 43% 1(Hereford)First Financial Bank $223M 4 58% 1(Eastland, Ranger, Rising Star, Cisco)First Financial Bank $211 M 4 34% 1(Sweetwater, Roby, Trent, Merkel)First Financial Bank $468M 2 19% 2(San Angelo)TOTALS $2,681M 26 * Data as of 12-31-12 ** Data as of 06-30-12 12
    14. 14. Expansion Markets DEPOSIT MARKET MARKET SHAREREGION ASSET SIZE* LOCATIONS SHARE** RANK**First Financial Bank $336 M 7 22% 1(Cleburne, Burleson, Alvarado, Midlothian, Crowley,Waxahachie)First Financial Bank $348 M 4 7% 5 (Southlake, Trophy Club, Keller, Grapevine 3 16% 3 Bridgeport, Decatur, Boyd)First Financial Bank $378 M 6 22% 2 (Stephenville, Granbury, Glen Rose, Acton)First Financial Bank $422 M 7 24% 1(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)First Financial Bank $213 M 1 34% 1(Mineral Wells)First Financial Bank $182 M 1 20% 2(Huntsville) * Data as of 12-31-12 ** Data as of 06-30-12TOTALS $1,879M 29 13
    15. 15. Recent De Novo Growth San Angelo: HEB Branch – Expected to Open 1st Qtr. 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 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 14
    16. 16. Senior Management at First Financial Years with Company Years in Industry Scott Dueser Chairman of the Board, President & 37 42 Chief Executive Officer J. Bruce Hildebrand, CPA Executive Vice President 10 34 Chief Financial Officer Ron Butler Executive Vice President 20 31 Chief Administrative Officer Gary L. Webb Executive Vice President 10 24 Operations Gary S. Gragg Executive Vice President 22 34 Credit Administration Marna Yerigan Executive Vice President 2 29 Credit Administration Michele Stevens Senior Vice President 16 32 Advertising and Marketing Courtney Jordan Senior Vice President 4 19 Training & Education Kirk Thaxton, CTFA President, First Financial Trust & Asset 26 30 Management 15
    17. 17. Experienced Regional CEOs & Presidents Years with Company Years in Industry Marelyn Shedd, FFB Abilene 22 29 Mike Mauldin, FFB Hereford 10 35 Kirby Andrews, FFB Sweetwater 22 25 Trent Swearengin, FFB Eastland 13 15 Mike Boyd, FFB San Angelo 37 41 Tom O’Neil, FFB Cleburne 14 33 Matt Reynolds, FFB Cleburne 8 31 Ron Mullins, FFB Stephenville 7 34 Jay Gibbs, FFB Weatherford 11 38 Mark Jones, FFB Southlake 12 35 Ken Williamson, FFB Mineral Wells 11 41 Robert Pate, FFB Huntsville 15 32 Gary Tucker, First Technology Services 22 38 16
    18. 18. Asset Performance Growth in Total Assets (in millions) $4,500 $4,121 $3,776 $3,212 $3,279 $3,070 2007 2008 2009 2010 2011 2012 17
    19. 19. Deposit Growth Growth in FFIN Total Deposits (in millions) $3,633 $3,335 $3,113 $2,685 $2,546 $2,583 $2,321 $2,233 $2,154 $1,786 $1,849 $1,807 $1,312 $739 $797 $836 $959 $1,102 2007 2008 2009 2010 2011 2012 Non Interest Bearing Interest Bearing 18
    20. 20. Deposit Products Time Savings 17.5% 9.5% Demand 36.1% Money Market 36.9% 19
    21. 21. Account Growth December 31, 2010 December 31, 2011 December 31, 2012Total Number of Accounts 200,027 204,063 205,488 Net Growth in 2011 – 4,036 Accounts Net Growth in 2012 – 1,425 Accounts 20
    22. 22. Loan Performance Growth in FFIN Total Loans (in millions) $2,089Real Estate $1,787 $1,690 $1,528 $1,566 $1,514Commercial $1,373 $1,238 $1,076 $990Student $836 $855 $860 $760Consumer $510 $394 $391 $429 $427Agricultural $344 $406 $31 $32 $52 $165 $182 $191 $175 $191 $218 $273 $73 $84 $77 $73 $81 $66 $68 2006 2007 2008 2009 2010 2011 2012 21
    23. 23. Overview of Loan Portfolio Commercial 24.3% Agriculture 3.3% Consumer 13.1% Real Estate 59.3% 22
    24. 24. Breakdown of R/E Loan Portfolio Residential Development & Construction 5.4% Other R/E 18.6% 1-4 Family 43.4% Commercial R/E 28.5% Commercial Development and Construction 4.1% 23
    25. 25. Loan to Deposit Ratio 2006 2007 2008 2009 2010 2011 2012 End of Period 57.6 60.0 60.6 56.4 54.3 53.6 57.5Average 56.6 59.8 61.1 59.5 56.0 54.6 56.4Balances 24
    26. 26. Variable and Fixed Rate LoansLoan Portfolio Interest Rate Risk Analysis Variable Fixed Rate Rate Less than 1 to 3 3 to 5 5 to 10 10 to 15 Over 15 1 year years years years years years 35.2% 9.3% 12.3% 18.5% 10.3% 9.2% 5.2% 25
    27. 27. Sound Lending PracticesNonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers) 2007 2008 2009 2010 2011 2012 FirstFinancial 0.31% 0.80% 1.46% 1.53% 1.64% 1.22%Peer Group 0.98% 2.63% 5.41% 5.37% 4.64% 3.96%** **As of Sept. 30, 2012 26
    28. 28. Allowance for Loan Losses and Provision for Loan Losses (in thousands) $34,315 $34,838 $31,106 $27,612 $21,529 $17,462 $16,201 $11,419 $7,957 $8,962 $6,626 $3,484 $2,061 $2,331 2006 2007 2008 2009 2010 2011 2012 ALLL Provision 27
    29. 29. Summary of Bond Portfolio Corporates Treasuries 6.26% 0.36% Agencies 12.76% CMOs 21.69% Muni MBSs 45.93% 13.00% 28
    30. 30. Municipal Allocation by State State Percentage Texas 64.48% Michigan 4.01% Wisconsin 3.31% Illinois 2.44% New Jersey 1.92% Massachusetts 1.88% Washington 1.87% Florida 1.82% Utah 1.42% Louisiana 1.38% Kentucky 1.13% Ohio 1.09% Other 38 states 13.25% 29
    31. 31. Growth in Trust Assets Total Trust Assets – Book Value (in millions) $2,233 $1,912 $1,784 $1,664 $1,631 $1,428 2007 2008 2009 2010 2011 2012 30
    32. 32. Total Trust Fees Growth in FFTAM Fees (in thousands) $14,464 $12,671 $10,809 $9,441 $9,083 $8,746 2007 2008 2009 2010 2011 2012 31
    33. 33. Trust Company Net Income Growth in FFTAM Net Income (in thousands) $5,183 $4,176 $3,254 $2,810 $2,631 $2,549 2007 2008 2009 2010 2011 2012 32
    34. 34. 26th Consecutive Year of Increased Earnings FFIN Earnings (in millions) $74.2 $68.4 $59.7 $53.1 $53.8 $49.5 2007 2008 2009 2010 2011 2012 33
    35. 35. Strong Shareholder Earnings Basic Earnings Per Share $2.36 $2.17 $1.91 $1.71 $1.72 $1.59 2007 2008 2009 2010 2011 2012 34
    36. 36. FFIN Outperforms Peers Percentage Return on Average Assets 1.74% 1.72% 1.75% 1.78% 1.75% 1.68% 1.72% 1.10% 1.06%* 0.87% 0.79% First Financial Peer Group -0.03% -0.18% 0.24% 2006 2007 2008 2009 2010 2011 2012 *(As of Sept. 30th) 35
    37. 37. Strong Return on Capital Percentage Return on Average Equity 16.20% 15.87% 15.27% 14.44% 13.63% 13.74% 13.85% 12.61% 9.45% 9.17%* 7.27% First Financial Peer Group 0.88% -1.83% -2.57% 2006 2007 2008 2009 2010 2011 2012 *(As of Sept. 30th) 36
    38. 38. Capital & Capital Ratios (dollars in thousands) 2008 2009 2010 2011 2012 Shareholders’ Equity 368,782 415,702 441,688 508,537 556,963As a Percent of Total 11.48 12.68 11.70 12.34 12.37 Assets Tangible 304,779 352,550 369,164 436,415 484,990 Capital Tier 1 9.68 10.69 10.28 10.33 10.60 Leverage Ratio Tier 1 Risk 15.89 17.73 17.01 17.49 17.43 Based Capital Ratio Risk Based 17.04 19.10 18.26 18.74 18.68 Capital Ratio 37
    39. 39. 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 3rd 4th Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. 09 09 10 10 10 10 11 11 11 11 12 12 12 12 12 First Financial Peer Group 38
    40. 40. Working Harder and SmarterEfficiency Ratio (FFIN vs. Peers) 2006 2007 2008 2009 2010 2011 2012 FirstFinancial 53.57% 52.83% 50.76% 50.11% 49.49% 48.37% 48.14%Peer Group 61.29% 63.12% 68.12% 69.53% 67.33% 65.57% 65.44%** **As of Sept. 30, 2012 39
    41. 41. Total Return on Investment Assume you owned 1,000 shares of FFIN stock on January 1, 2012… Stock cost in January 2012 $33,430 Dividend declared ($0.99 x 1,000 shares) $ 990 Increase in stock price during 2012 $5,580 $2210,720 ($39.01 from $33.43 X 1,000 shares) 2012 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% 40
    42. 42. Dividends Per Share Annual Dividends Declared Per Share $0.99 $0.95 $0.89 $0.91 $0.91 $0.84 $0.79 2006 2007 2008 2009 2010 2011 2012 41
    43. 43. Strong Stock Performance50.00%40.00%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 Sept. ’12 FFIN S&P 500 NASDAQ Dow Jones 42
    44. 44. Challenges  Regulatory reform from Washington  Keep nonperforming assets to a minimum  Maintain net interest margin  Lower efficiency ratio 43
    45. 45. Opportunities  Loan Growth  Mortgage Lending  Trust Services  Treasury Management  Potential Acquisitions 44
    46. 46. www.ffin.com

    ×