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1st Quarter 2017
First Financial Bankshares, Inc.
1
Forward Looking Statement
The numbers, as of and for the quarter ended March 31, 2017, 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.
22
Who We Are
$6.9 billion financial holding company
headquartered in Abilene, Texas
Group of 11 separate regions
127 year history
Growth markets include 50 mile radius of
Dallas, Fort Worth, and Houston
3
Recognitions – Financial Exploitation Prevention Program
Texas Bankers Association Cornerstone Award for Day of
Service – May 2017
Texas Bankers Association 2016 Leaders in Financial Education
Award – May 2016
House Investments and Financial Services Committee – March 2016
Texas Senate Committee on Business and Commerce – Jan. 2016
AARP Roundtable Discussion – November 2015
ABA Foundation Community Commitment Award – November 2015
White House Conference on Aging – July 2015
4
55
Recognitions
Raymond James Community Bankers Cup #2, One of thirty
banks named– April 2017
KBW Honor Roll – One of fifteen banks named – April 2017
SNL - #5 Best-Performing Regional Bank – April 2016
2015 Proven Performers Award Winner – Bank Intelligence
Solutions
American Banker - #15 – Based on three year average Return on
Equity – May 2015
66
What Makes Us Different
One Bank, Eleven Regions Concept
One Bank
Consolidation of backroom operations, technology, 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
77
FFIN’s Unique Positioning in Texas
Bank Key Markets
Comerica DFW, Austin, Houston, California, Michigan, Florida, Mexico
Green Houston, Austin, Dallas
Frost San Antonio, Austin, Corpus Christi, DFW, Rio Grande, West Texas
Independent North and Central Texas
International Bancshares Rio Grande, Houston, San Antonio, Oklahoma
Legacy Texas Dallas
Prosperity Houston, DFW, Austin, West Texas, South Central Texas, and Oklahoma
Southside East Texas
Texas Capital DFW, Austin, San Antonio, and Houston
Triumph Dallas
Veritex Dallas
88
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 States
#4 Market Share in Conroe – 10.6%
8 Branches in Conroe, Magnolia, Tomball, Cut and Shoot, Montgomery, and
Huntsville; additional site on Grand Parkway in Spring, Texas to expand
$374 million in Assets at acquisition date
$343 million in deposits
$248 million in loans
1.06% Return on Assets in 2014
$61.0 million purchase price of our stock which represents 16x last twelve
months earnings
Conroe acquisition is consistent with our acquisition model of high growth areas,
strong management and excellent earnings opportunity
Provides diversification and fits well into our footprint
Management and Board share same values to outstanding customer service
99
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 now President of Mortgage Division of First Financial Bank; other
owners joining First Financial as EVP’s – Tammie Harding, Kami Graves, and Ryan
Craig
Considered one of the top mortgage companies in Fort Worth
Are now offering expanded mortgage products and services to customers
10
1111
Texas: Large and Growing
Five most populous states:* Growth
(2005 – 2015)
California 39.2 million 8.3%
Texas 27.7 million 21.1%
Florida 20.3 million 14.0%
New York 19.8 million 2.8%
Illinois 12.9 million 0.8%
* U.S. Census Bureau
1212
Target Markets – Population Growth
Population growth (2005-2015) in FFIN expansion markets:*
Texas 21.1%
Bridgeport & Wise County 20.1%
Fort Worth & Tarrant County 20.9%
Cleburne & Johnson County 14.6%
Weatherford, Willow Park, Aledo & Parker County 31.8%
Granbury & Hood County 18.0%
Stephenville & Erath County 16.3%
Conroe & Montgomery County 46.0%
* U.S. Census Bureau
1313
Core Markets: West Central Texas
Markets served benefiting from well-established,
long- time customers
REGIONASSET
SIZE*LOCATIONS
DEPOSIT
MARKET SHARE**
MARKET
SHARE RANK**
First Financial Bank
(Abilene, Clyde, Moran, Albany, Odessa
Eastland, Ranger, Rising Star, Cisco,
Sweetwater, Roby, Trent, Merkel)
$2,469M 23 46% 1
First Financial Bank
(Hereford)
$204M 1 45% 1
First Financial Bank
(San Angelo)
$694M 3 26% 1
TOTALS $3,367M 27
* Data as of 3-31-17
** Data as of 06-30-16
1414
Expansion Markets
REGION ASSET SIZE* LOCATIONSDEPOSIT MARKET
SHARE**
MARKET SHARE
RANK**
First Financial Bank
(Cleburne, Burleson, Alvarado)
(Midlothian, Waxahachie)
$480M 4
2
20%
10%
2
4
First Financial Bank
(Southlake, Trophy Club, Keller, Grapevine)
(Bridgeport, Decatur, Boyd)
$488M 4
3
4%
20%
5
2
First Financial Bank
(Stephenville, Granbury, Glen Rose, Acton)
$520M 6 24% 2
First Financial Bank
(Weatherford, Aledo, Willow Park, Brock)
$538M 6 23% 1
First Financial Bank
(Mineral Wells)
$281M 1 38% 1
First Financial Bank
(Ft. Worth)
$70M 1 - -
First Financial Bank
(Orange, Mauriceville, Vidor)
(Newton, Port Arthur, Beaumont)
$536M 3
3
37%
3%
1
7
First Financial Bank
(Conroe, Magnolia, Cut and Shoot, Montgomery, Huntsville, Willis, Tomball,
New Waverly)
(Market Share for Huntsville, Conroe, Magnolia, Cut and Shoot, Montgomery and Willis Only)
$585M 9 10% 5
TOTALS $3,498M 42* Data as of 3-31-17
** Data as of 06-30-16
1515
Recent De Novo Growth
New Waverly: Branch of Huntsville – August 2014
Beaumont: Branch of Orange – August 2014
Weatherford: I-20 Branch – June 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 (New Building – Opened August 2016)
Lamesa: Office of Trust Company – April 2011
Odessa: Branch of Abilene – February 2010 (New Building – Opened September 2016)
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 (New Building – Opened May 2016)
Fort Worth – Forest Park Blvd. and Rosedale (Opened May 2016)
161616
Fort Worth – Forest Park Blvd. and Rosedale
1717
18
Years with Company Years in Industry
Scott DueserChairman of the Board, President &
Chief Executive Officer
41 46
Ron ButlerExecutive Vice President
Chief Administrative Officer
24 35
Troy ForePresident
First Financial Mortgage
1 35
Gary S. GraggExecutive Vice President
Lending
26 38
J. Bruce Hildebrand, CPAExecutive Vice President
Chief Financial Officer
15 39
Monica HoustonExecutive Vice President
Retail Banking & Training
21 21
Executive Management at First Financial
18
19
Years with Company Years in Industry
Luke LonghoferExecutive Vice President & Loan Review Officer
Lending
6 14
Stan LimerickExecutive Vice President
Chief Information Officer
2 36
Randy RoeweExecutive Vice President
Chief Risk Officer
1 25
Kirk Thaxton, CTFAPresident
First Financial Trust & Asset Management
30 34
Marna YeriganExecutive Vice President
Lending
6 33
Executive Management at First Financial
19
20
Years with Company Years in Industry
Brandon Harris
Senior Vice President
Appraisal Services
3 16
Larry Kentz
Senior Vice President & Compliance Officer
Compliance
3 36
Michele Stevens
Senior Vice President
Advertising and Marketing
17 32
Senior Management at First Financial
20
Experienced Regional CEOs & Presidents
21
Years with Company Years in Industry
Marelyn Shedd, Abilene 25 33
Kirby Andrews, Sweetwater 20 23
David Bailey, Eastland 14 14
Mike Mauldin, Hereford 14 39
Mike Boyd, San Angelo 41 44
Chris Evatt, San Angelo 12 12
Tom O’Neil, Cleburne 18 37
Trent Swearengin, Stephenville 17 19
Jay Gibbs, Weatherford 15 42
Justin Hooper, Weatherford 13 24
Mark Jones, Southlake 16 39
Ken Williamson, Mineral Wells 15 45
Stephen Lee, Southeast Region 4 28
Sam Baker, Conroe 2 41
Robert Pate, Conroe 20 39
Martin Noto, Fort Worth 1 33
2222
$4,502
$5,222
$5,848
$6,665$6,810 $6,930*
2012 2013 2014 2015 2016 2017
Growth in Total Assets
Asset Performance
(in millions)
*As of March 31, 2017
2323
$1,312 $1,362 $1,570 $1,746 $1,718 1,828
$2,321$2,773
$3,180$3,444 $3,761 $3,834
2012 2013 2014 2015 2016 2017
Non Interest Bearing Interest Bearing
Deposit Growth
Growth in FFIN Total Deposits (in millions)
$5,662*
$3,633
$4,135
$4,750
$5,190$5,479
*As of March 31, 2017
2424
Deposit Products
Time8.7%
Demand32.3%
Money Market46.0%
Savings13.0%
*As of March 31, 2017
2525
Account Growth
Net Growth in 2013 – 3,308 Accounts*
Net Growth in 2014 – 10,687 Accounts
Net Growth in 2015 – 5,886 Accounts**
Net Growth in 2016 – 3,015 Accounts
Net Growth in 2017 - 2,387 Accounts
December 31,
2013
December 31,
2014
December 31,
2015
December 31,
2016
March 31,
2017
Total Number
of Accounts
208,590 234,614 251,699 254,714 257,101
*(Excluding Orange Acquisition)
**(Excluding Conroe Acquisition)
2626
$68 $76 $106 $102 $84 $79
$273 $334 $361 $386 $409 $418
$510 $590
$640 $685 $674 $667
$1,238
$1,689 $1,831
$2,178 $2,217 $2,222
2012 2013 2014 2015 2016 2017
Real Estate
Commercial
Consumer
Agricultural
Loan Performance
Growth in FFIN Total Loans (in millions)
$2,089
$2,689
$2,938
$3,386$3,351 $3,384
*As of March 31, 2017
2727
Overview of Loan Portfolio
Commercial 19.7% Agriculture
2.3%
Consumer12.3%
Real Estate65.7%
Note: Oil & Gas Exposure 2.2%
*As of March 31, 2017
2828
Residential Development & Construction
8.3%
1-4 Family 45.2%
Commercial Development and
Construction5.7%
Commercial R/E 24.1%
Other R/E 16.7%
Breakdown of R/E Loan Portfolio
*As of March 31, 2017
2929
Oil & Gas Portfolio Analysis
Oil & Gas Supplemental Information (dollars in thousands)
December 31, 2016 March 31, 2017
Oil & Gas Loans 78,483 75,262
% of Total Loans 2.32% 2.22%
Classified Oil & Gas Loans 32,518 29,077
Non Accrual Oil & Gas Loans 4,092 3,208
Quarter Ended Net Charge-offs 105 0
ALLL of % of Oil & Gas 6.28% 6.59%
3030
2012 2013 2014 2015 2016 2017*
End ofPeriod 57.5 65.0 61.8 64.6 61.8 59.8
Average
Balances56.4 64.3 64.1 63.0 64.9 61.1
Loan to Deposit Ratio
*As of March 31, 2017
3131
2012 2013 2014 2015 2016 2017*
FirstFinancial 1.22% 1.16% 0.74% 0.90% 0.86% 0.90%
Peer Group 3.67% 2.71% 1.92% 1.32% 1.05% -
Sound Lending Practices
Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)
*As of March 31, 2017
3232
Less than 1
year1 to 2 years 3 to 5 years 6 to 10 years
Over 10
years
34.05% 13.45% 32.16% 14.65% 5.69%
Loan Repricing
Loan Portfolio Interest Rate Risk Analysis
*As of March 31, 2017
3333
$34,839 $33,900$36,824
$41,877
$45,779 $46,192*
$3,484 $3,753 $4,465
$9,685 $10,212
$1,950*
2012 2013 2014 2015 2016 2017
ALLL Provision
Allowance for Loan Losses and Provision for Loan Losses
(in thousands)
*As of and for 3 months
ended March 31, 2017
3434
Summary of Bond Portfolio
Agencies 2.80%
Corporates 1.51%
Muni 50.45%
MBSs 23.24%
CMOs 21.63%
Treasuries 0.37%
*As of March 31, 2017
3535
$2,233$2,465
$2,774
$3,060$3,374
$3,532*
2012 2013 2014 2015 2016 2017
Growth in Trust Assets
Total Trust Assets – Book Value (in millions)
*As of March 31, 2017
3636
$14,464
$16,317
$18,766 $19,252 $19,636
$3,454 $3,793 $4,576 $4,732 $4,655
$6,017
2012 2013 2014 2015 2016 2017
Total Trust Fees
Growth in FFTAM Fees (in thousands)
thru
March 31st
3737
$5,183
$6,142
$7,109$7,449
$7,190
$1,225 $1,422 $1,792 $1,814 $1,621
$2,273
2012 2013 2014 2015 2016 2017
Total Trust Net Income
Growth in FFTAM Net Income (in thousands)
thru
March 31st
38
$74.2$78.9
$89.6
$100.4$104.8
$17.8 $18.6$22.3 $24.0 $25.7 $26.6
2012 2013 2014 2015 2016 2017
30th Consecutive Year of Increased Earnings
FFIN Earnings (Full year and 1st 3 months) (in millions)
38
thru
March 31st
39
$1.18 $1.24
$1.40
$1.55 $1.59
$0.28 $0.29$0.35 $0.37 $0.39 $0.40
2012 2013 2014 2015 2016 2017
Strong Shareholder Earnings
Basic Earnings Per Share (Full year and 1st 3 months)
39
thru
March 31st
40
1.75%1.64% 1.65% 1.61% 1.59%
0.98% 1.03% 0.95% 0.95%1.00%
2012 2013 2014 2015 2016
FFIN Outperforms Peers
Percentage Return on Average Assets
Pe
er
Gro
up
Fir
st
Fin
an
cia
l
40
41
13.85% 13.75% 14.00%13.60%
12.36%
8.56% 8.88%8.32%
8.59%9.13%
2012 2013 2014 2015 2016
Strong Return on Capital
Percentage Return on Average Equity
Pe
er
Gro
up
Fir
st
Fin
an
cia
l
41
4242
2013 2014 2015 2016 2017*
Shareholders’Equity 587,647 681,537 804,986 837,885 859,354
As a Percent of Total
Assets11.25 11.65 12.08 12.30 12.40
Tangible
Capital490,163 584,178 660,537 694,282 715,919
Tier 1
Leverage Ratio9.84 9.89 9.96 10.71 10.60
Common Equity
Tier 1 Capital Ratio15.82 16.05 15.90 17.30 17.56
Tier 1 Capital Ratio 15.82 16.05 15.90 17.30 17.56
Total
Capital Ratio16.97 17.16 16.97 18.45 18.72
Capital & Capital Ratios
(dollars in thousands)
*As of March 31, 2017
43
3.00%
3.25%
3.50%
3.75%
4.00%
4.25%
4.50%
4.75%
5.00%
4th Qtr.'13
1st Qtr.'14
2nd Qtr.'14
3rd Qtr.'14
4th Qtr.'14
1st Qtr.'15
2nd Qtr.'15
3rd Qtr.'15
4th Qtr.'15
1st Qtr.'16
2nd Qtr.'16
3rd Qtr.'16
4th Qtr.'16
1st Qtr.'17
First Financial Peer Group
Net Interest Margin
Quarterly Interest Margin
43
4444
2012 2013 2014 2015 2016 2017
FirstFinancial 48.14% 50.20% 49.24% 47.61% 49.22% 49.67%*
Peer Group 65.77% 67.87% 66.94% 63.92% 62.83% -
Working Harder and Smarter
Efficiency Ratio (FFIN vs. Peers)
*As of and for 3 months
ended March 31, 2017
4545
Stock cost in January 2016 $30,170
Dividend declared ($0.70 x 1,000 shares) $ 700
Increase in stock price during 2016
($30.17 to $45.20 X 1,000 shares)$15,030
2016 return on investment 52.14%
2015 return on investment 3.05%
2014 return on investment -7.96%
2013 return on investment 72.11%
2012 return on investment 19.65%
5 year compound average return 12.36%
Total Return on Investment
21.94%
Assume you owned 1,000 shares of FFIN stock on January 1, 2016…
4646
Dividends Per Share
$0.50 $0.52 $0.55
$0.62
$0.70
2012 2013 2014 2015 2016
Annual Dividends Declared Per Share
Increased Cash Dividend
Increase cash Dividend by $0.01 to $0.19 per quarter – 5.6% increase
2017 Dividend will be $0.75
Shareholders of record as of June 16, 2017
Dividend payable July 3, 2017
47
4848
Strong Stock Performance
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
FFIN S&P 500 NASDAQ Dow JonesJan . ‘07 Dec. ’16Dec . ‘09Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11 Dec. ’12 Dec. ’13 Dec. ’14 Dec. ’15 Mar. ’17
49
Focus for 2017
Grow Loans and Deposits
Grow Mortgage and Trust
Improve our net Interest margin
Increase our fee income
Control expenses
Improve credit quality
Make an acquisition