2013 Annual Shareholders Meeting - First National of Nebraska€¦ · –We paid a $25 per share dividend in May 2013 • Even with paying a dividend, First National of Nebraska does

© FIRST NATIONAL BANK

2013 Annual Shareholders Meeting


2012 Highlights


2012 Highlights

• Net Income of $166.6 million our second best year in history


2010 2011 2012

Total Revenue $1,206.3 $1,104.4 $1,171.4

Provision Expense 418.5 66.7 140.7

Expenses 742.4 741.2 771.7

Taxes 10.6 106.0 92.4

Adjusted Net Income $34.8 $190.5 $166.6

One-time items (net of tax):

Merchant Gain 179.3 15.8 -

Visa Litigation - (26.4) -

Restructuring/Other (7.0) (20.9) -

Reported Net Income $207.1 $158.9 $166.6

Full Year Net Income

Dollars in millions


2012 Highlights


• Return on Equity 11.4%


Shareholder Return Trend

Dollars in millions 2007* 2008* 2009 2010 2011 2012

Shareholders' Equity $1,191.7 $1,168.7 $1,184.2 $1,245.4 $1,389.4 $1,487.4

Managed Assets $18,629.3 $19,027.2 $17,359.1 $14,969.4 $15,274.6 $16,407.4

% Shareholders' Equity 6.4% 6.1% 6.8% 8.3% 9.1% 9.1%

Return on Assets 1.0% 0.2% 0.2% 1.3% 1.1% 1.1%

Return on Equity 12.1% 2.9% 2.8% 17.3% 11.7% 11.4%

*2007 and 2008 exclude the impact of the Visa IPO and related litigation


Shareholder Return Trend

Dollars in millions 2007* 2008* 2009 2010 2011 2012

Shareholders' Equity $1,191.7 $1,168.7 $1,184.2 $1,245.4 $1,389.4 $1,487.4

Managed Assets $18,629.3 $19,027.2 $17,359.1 $14,969.4 $15,274.6 $16,407.4

% Shareholders' Equity 6.4% 6.1% 6.8% 8.3% 9.1% 9.1%

Return on Assets 1.0% 0.2% 0.2% 1.3% 1.1% 1.1%

Return on Equity 12.1% 2.9% 2.8% 17.3% 11.7% 11.4%

*2007 and 2008 exclude the impact of the Visa IPO and related litigation

Peer Group Median1

Total Assets $16,528.1

Return on Assets 0.9%

Return on Equity 8.9%

1 Federal Reserve peer group of 21

banks, as of December 31, 2012


2012 Highlights



• Regulatory climate continues to pose challenges


• Dodd Frank Act calls for 398 total rulemaking requirements

– As of May 1, 2013, only 153, or 38%, have been implemented by

regulators

Capital

• Industry capital standards significantly increased

• New stress testing requirements

• New Basel III standards remain pending

Revenue • CFPB, Dodd Frank impact on customer base and fees

Overhead • Cost of complying with new regulations

• Fines and penalties being assessed

Regulatory Environment


2012 Highlights




• Bankcard, Commercial and Agricultural loans all experienced growth


Loan Composition (in millions)

December 31, 2011 $10,389

December 31, 2012 $11,169 (+ 8%)

Bankcard

Commercial & Industrial

Consumer $202

Agriculture Other $144

+ 9%

- 5%

+ 8%

+ 138%

+ 14%

+ 38%

$1,165

Real Estate

$3,631

$1,143

$4,642 $1,260

$3,445

$4,247

$1,000

Total Loans

-3.3% +7.5%


2012 Highlights





• Deposits grew by $1.8 billion, nearly 15%


Deposits

December 31, 2011 $12.3 Billion

December 31, 2012 $14.1 Billion (+ 14%)

Demand

Savings

Time + 39%

+ 4%

+ 22 %

On-line

- 3%


Deposits

April 30, 2012 $12.2 Billion

April 30, 2013 $12.8 Billion (+ 5%)

Demand

Savings

Time + 14%

+ 1%

+ 1%

+ 7%

On-line


2012 Highlights






• First National credit card customers charged a record $10.5 billion


Credit Card Spending

$10.5

$8.9

$8.0 $7.8

Annual

$4.6

$4.1

Year-to-Date May

+ 11%

Dollars in billions


2012 Highlights







• Credit card charge-offs reached a record low of 3.8%


Bankcard Loss Rate


2012 Highlights








• Problem loans continue to trend lower


Classified Assets


2012 Highlights









• Customers took advantage of historically low interest rates to

purchase or refinance their homes

– Closed a record $1.15 billion in residential mortgage loans


Loans Closed

Mortgage Lending

Gain on Sales

$43.7

$15.3

$29.8

Dollars in millions


2012 Highlights









• Customers took advantage of historically low interest rates to

purchase or refinance their homes

– Closed a record $1.15 billion in residential mortgage loans

• Opened a new branch in Council Bluffs, Iowa and recently opened a

branch in Lincoln, our 106th branch


Investing for Growth: New Branches

84th and Holdrege Lincoln 25th and Broadway Council Bluffs


2012 Highlights - Continued

• After nearly three years we reinstated dividends paying out

$130 per share in 2012

– We paid a $25 per share dividend in May 2013


Dividends

Year Dividend Per Share

2012 $130

2011 $ -

2010 $ -

2009 $ 25

2008 $100

2007 $100

2006 $100

2005 $ 75

2004 $125

2003 $ 80






• Even with paying a dividend, First National of Nebraska does not owe

any short-term debt and has accumulated cash of $91 million

(May 2013) to serve as a source of strength for the Company


Holding Company Liquidity

• No borrowing under $100 million

contingent bank facility

• Commenced FNBO and FNN

dividends in 2012

Bank Note Cash

Dollars in millions






• Even with paying a dividend, First National of Nebraska does not owe

any short-term debt and has accumulated cash of $91 million

(May 2013) to serve as a source of strength for the Company

• Forbes Magazine recognized First National of Nebraska for the second

year in a row as one of its “Best Banks in America”


Forbes Recognition



Questions

Documents

2013 Annual Shareholders Meeting - First National of Nebraska€¦ · –We paid a $25 per share dividend in May 2013 • Even with paying a dividend, First National of Nebraska does