2013 Annual Shareholder Meeting
Senior Management at First Financial                                            Years with Company   Years in Industry    ...
Senior Management at First Financial                                                     Years with Company   Years in Ind...
Experienced Regional CEOs & Presidents                                              Years with Company   Years in Industry...
Board of Directors                                                   Years as Board              Committee                ...
Board of Directors                                                    Years as Board              Committee               ...
Independent Public Auditors
Forward Looking Statement  The numbers, as of and for the three months ended March 31, 2013, contained within this present...
2012 Financial Review
Earnings
26th Consecutive Year of Increased Earnings    FFIN Earnings                             (in millions)                    ...
Strong Shareholder Earnings    Basic Earnings Per Share                                               $2.36               ...
Working Harder and SmarterEfficiency Ratio                                          (FFIN vs. Peers)              2006    ...
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                                             1.74%     1.72% ...
Strong Return on Capital    Percentage Return on Average Equity    16.20%                                    15.87%       ...
Capital Ratios                                                 To be considered                           12-31-12   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 2013 Summary
1st Quarter Earnings    FFIN Earnings                              (in millions)                                       $17...
Account Growth                   December    December    December 31,   March 31,                    31, 2010    31, 2011 ...
Shareholder Earnings – 1st Quarter    Basic Earnings Per Share                                               $0.59        ...
Growth in Trust Assets    Total Trust Assets – Book Value               (in millions)                                     ...
Total Trust Fees    Growth in FFTAM Fees                            (in thousands)                                        ...
Revenue from Mineral Management   Growth in Mineral Management          (in thousands)                                    ...
Net Trust Income   Growth in FFTAM Income                       (in thousands)                                            ...
Managed Equity Styles   Equity Income   Core Domestic   Core Diversified   Core World   Strategic Growth
35
Net Trust Income – 1st Quarter    Growth in FFTAM Income                 (in thousands)                                   ...
Board of Directors – First Financial Trust & Asset Management      Joe E. Canon, J.D.        Executive Director, Dodge Jon...
The More Things Change,The More We Stay The Same
Customer Service First
Mobile Banking                 42
Challenges  Overwhelming number of unreasonable regulations   from Washington  Stagnant national economy  Inept federal...
Consolidation of Charters    Regulatory compliance    Technology complexities    Cost Savings
Opportunities   Loan Growth   Mortgage Lending   Trust Services   Treasury Management   Mobile Banking / Picture Pay ...
Recent De Novo Growth Weatherford – I-20 Branch – Expected to Open 2nd Qtr. 2013 San Angelo: HEB Branch – March 2013 Wa...
Grapevine            47
Antilley Road - Abilene                          48
Waxahachie             49
HEB – San Angelo
I-20 - Weatherford                     51
Core Markets: West Central Texas        Markets served benefiting from well-established,         long- time customers    ...
Expansion Markets                                                                                DEPOSIT MARKET     MARKET...
54
Orange Acquisition  Definitive Agreement Signed - February 2013  Orange, Jefferson and Newton Counties        Approxima...
Stephen Lee – President Orange Savings Bank                         56
Board of Directors – Orange Savings Bank      Tommy Gunn      City Attorney      Paul Peveto      CFO, Cloeren, Inc.      ...
Orange         58
Mauriceville               59
Newton         60
Vidor        61
Port Arthur              62
26th Consecutive Year of Increased Earnings    FFIN Earnings                             (in millions)                    ...
Recognitions KBW Honor Roll – One of Forty-seven banks named – April 2013 SNL Financial #11 Best Performing Community Ba...
Total Return on Investment   Assume you owned 1,000 shares of FFIN stock on January 1, 2012…     Stock cost in January 201...
Strong Stock Performance80.00%60.00%40.00%20.00% 0.00%-20.00%-40.00%-60.00%   Jan . ‘07    Dec ‘07       Dec ‘08     Dec ....
Dividends Per Share   Annual Dividends Declared Per Share                                                     $0.99       ...
Increase Cash Dividend Today $0.25 per share quarterly Increase cash divided to $0.26 per quarter – 4.0% increase Share...
www.ffin.com
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
2013 FFIN Annual Meeting presentation
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2013 FFIN Annual Meeting presentation

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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.
  • 2013 FFIN Annual Meeting presentation

    1. 1. 2013 Annual Shareholder Meeting
    2. 2. 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 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 Ron Butler Executive Vice President 19 31 Chief Administrative Officer
    3. 3. Senior Management at First Financial Years with Company Years in Industry Michele Stevens Senior Vice President 37 42 Advertising and Marketing Courtney Jordan Senior Vice President 10 34 Training Bob Goodner Senior Vice President & Compliance Officer 12 35 Compliance Luke Longhofer Senior Vice President & Loan Review Officer 3 10 Credit Administration Brandon Harris Senior Vice President 1 15 Appraisal Services Kirk Thaxton, CTFA President, First Financial Trust & Asset 26 30 Management
    4. 4. Experienced Regional CEOs & Presidents Years with Company Years in Industry Marelyn Shedd, Abilene 22 30 Mike Mauldin, Hereford 10 35 Kirby Andrews, Sweetwater 22 25 Trent Swearengin, Eastland 13 15 Mike Boyd, San Angelo 37 41 Tom O’Neil, Cleburne 15 33 Matt Reynolds, Cleburne 8 31 Ron Mullins, Stephenville 7 35 Jay Gibbs, Weatherford 11 39 Mark Jones, Southlake 12 35 Ken Williamson, Mineral Wells 11 42 Robert Pate, Huntsville 16 32 Fred Wren, Huntsville 1 34 Gary Tucker, First Technology Services 22 38
    5. 5. Board of Directors Years as Board Committee Member Appointment Executive / Audit Steven L. Beal Director and Former President and COO of 3 Compensation Concho Resources Inc. Nominating/Corporate Governance Lead Director / Executive Tucker S. Bridwell President, Mansefeldt Investment Corporation 6 Audit / Nominating/ Corporate Governance Joseph E. Canon Compensation Executive Director, Dodge Jones Foundation 17 Asset and Liability Executive / Audit David Copeland President, SIPCO, Inc. and 15 Nominating/Corporate Governance Shelton Family Foundation Asset and Liability F. Scott Dueser Chairman of the Board, President and CEO 22 Executive Murray Edwards Executive / Audit Principal, The Edwards Group 7 Nominating /Corporate Governance
    6. 6. Board of Directors Years as Board Committee Member Appointment Audit Ron Giddiens 3 G&G Investments Asset and Liability Tim Lancaster President & CEO Hedrick Health System - Proposed - Audit 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. Forward Looking Statement The numbers, as of and for the three months ended March 31, 2013, 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.
    9. 9. 2012 Financial Review
    10. 10. Earnings
    11. 11. 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
    12. 12. 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
    13. 13. 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% 65.75%
    14. 14. 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. 09 Qtr. 09 Qtr. 10 Qtr. 10 Qtr. 10 Qtr. 10 Qtr. 11 Qtr. 11 Qtr. 11 Qtr. 11 Qtr. 12 Qtr. 12 Qtr. 12 Qtr. 12 First Financial Peer Group
    15. 15. FFIN Outperforms Peers Percentage Return on Average Assets 1.74% 1.72% 1.75% 1.78% 1.75% 1.68% 1.72% 1.10% 0.98% 0.87% 0.79% First Financial Peer Group 0.24% -0.03% -0.18% 2006 2007 2008 2009 2010 2011 2012
    16. 16. 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% 8.72% 7.27% First Financial Peer Group 0.88% -1.83% -2.57% 2006 2007 2008 2009 2010 2011 2012
    17. 17. Capital Ratios To be considered 12-31-12 03-31-13 well Capitalized Tier 1 10.60 10.69 > 5.00 Leverage Ratio Tier 1 Risk 17.43 17.54 > 6.00 Based Capital Ratio Risk Based 18.68 18.80 > 10.00 Capital Ratio
    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
    19. 19. 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
    20. 20. 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% 3.70%
    21. 21. 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
    22. 22. 1st Quarter 2013 Summary
    23. 23. 1st Quarter Earnings FFIN Earnings (in millions) $17.8 $18.6 $16.3 $13.2 $13.7 $13.7 2008 2009 2010 2011 2012 2013
    24. 24. Account Growth December December December 31, March 31, 31, 2010 31, 2011 2012 2013 Total Number of 200,027 204,063 205,282 206,421 Accounts Net Growth in 2011 – 4,036 Accounts Net Growth in 2012 – 1,219 Accounts New Growth in 2013 – 1,139 Accounts
    25. 25. Shareholder Earnings – 1st Quarter Basic Earnings Per Share $0.59 $0.56 $0.52 $0.42 $0.44 $0.44 2008 2009 2010 2011 2012 2013
    26. 26. Growth in Trust Assets Total Trust Assets – Book Value (in millions) $2,233 $1,912 $1,783 $1,664 $1,631 $1,428 2007 2008 2009 2010 2011 2012
    27. 27. 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 2011
    28. 28. Revenue from Mineral Management Growth in Mineral Management (in thousands) $2,167 $1,835 $1,159 $745 2009 2010 2011 2012
    29. 29. Net Trust Income Growth in FFTAM Income (in thousands) $5,183 $4,176 $3,254 $2,810 $2,631 $2,549 2007 2008 2009 2010 2011 2012
    30. 30. Managed Equity Styles Equity Income Core Domestic Core Diversified Core World Strategic Growth
    31. 31. 35
    32. 32. Net Trust Income – 1st Quarter Growth in FFTAM Income (in thousands) $1,422 $1,225 $1,015 $737 $739 $606 2008 2009 2010 2011 2012 2013
    33. 33. Board of Directors – First Financial Trust & Asset Management Joe E. Canon, J.D. Executive Director, Dodge Jones Foundation David Copeland President, Shelton Family Foundation John L. Beckham Beckham Rector & Eargle, LLP F. Scott Dueser President, First Financial Bankshares, Inc. David F. Lupton President, Angelo Glass & Mirror Company, Inc. Bill Parham Boucher Morgan & Young CPAs Ronnie Cox Investments Sarah Campbell Portfolio Manager Kirk W. Thaxton Chairman of the Board, President & CEO, First Financial Trust & Asset Management
    34. 34. The More Things Change,The More We Stay The Same
    35. 35. Customer Service First
    36. 36. Mobile Banking 42
    37. 37. Challenges  Overwhelming number of unreasonable regulations from Washington  Stagnant national economy  Inept federal government  Low interest rate environment  Maintaining net interest margin  Keep nonperforming assets to a minimum
    38. 38. Consolidation of Charters  Regulatory compliance  Technology complexities  Cost Savings
    39. 39. Opportunities  Loan Growth  Mortgage Lending  Trust Services  Treasury Management  Mobile Banking / Picture Pay  Lower Efficiency Ratio  Potential Acquisitions
    40. 40. 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
    41. 41. Grapevine 47
    42. 42. Antilley Road - Abilene 48
    43. 43. Waxahachie 49
    44. 44. HEB – San Angelo
    45. 45. I-20 - Weatherford 51
    46. 46. 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 $1,531 M 15 43% 1(Abilene, Clyde, Moran, Albany, Odessa)First Financial Bank $166 M 1 43% 1(Hereford)First Financial Bank $228M 4 58% 1(Eastland, Ranger, Rising Star, Cisco)First Financial Bank $188 M 4 34% 1(Sweetwater, Roby, Trent, Merkel)First Financial Bank $462M 3 19% 2(San Angelo)TOTALS $2,575M 27 * Data as of 03-31-13 ** Data as of 06-30-12
    47. 47. Expansion Markets DEPOSIT MARKET MARKET SHAREREGION ASSET SIZE* LOCATIONS SHARE** RANK**First Financial Bank $344 M 6 22% 1(Cleburne, Burleson, Alvarado, Midlothian,Waxahachie)First Financial Bank $355 M 4 7% 5 (Southlake, Trophy Club, Keller, Grapevine 3 16% 3 Bridgeport, Decatur, Boyd)First Financial Bank $392 M 6 22% 2 (Stephenville, Granbury, Glen Rose, Acton)First Financial Bank $424 M 7 24% 1(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)First Financial Bank $215 M 1 34% 1(Mineral Wells)First Financial Bank $177 M 1 20% 2(Huntsville) * Data as of 03-31-13TOTALS $1,907 28 ** Data as of 06-30-12
    48. 48. 54
    49. 49. 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
    50. 50. Stephen Lee – President Orange Savings Bank 56
    51. 51. Board of Directors – Orange Savings Bank Tommy Gunn City Attorney Paul Peveto CFO, Cloeren, Inc. Walter Riedel Executive Director, H.J. Lutcher Stark Foundation Ross Smith President & CEO, Akrotex
    52. 52. Orange 58
    53. 53. Mauriceville 59
    54. 54. Newton 60
    55. 55. Vidor 61
    56. 56. Port Arthur 62
    57. 57. 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
    58. 58. 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 on Equity / Average Tangible Equity – January 2013 American Banker - #19 – Based on three year average Return on Equity – August 2012 ABA Banking Journal - #13 – Top Performing mid-sized banks ($1B - $10B) – May 2012
    59. 59. 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%
    60. 60. Strong Stock Performance80.00%60.00%40.00%20.00% 0.00%-20.00%-40.00%-60.00% Jan . ‘07 Dec ‘07 Dec ‘08 Dec . ‘09 Dec. ‘10 Dec. ’11 Dec. ’12 Mar. ’13 FFIN S&P 500 NASDAQ Dow Jones
    61. 61. 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
    62. 62. Increase Cash Dividend Today $0.25 per share quarterly Increase cash divided to $0.26 per quarter – 4.0% increase Shareholders of record as of June 14, 2013 Dividend payable July 1, 2013
    63. 63. www.ffin.com
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