2014 Annual Shareholder Meeting
Years with Company Years in Industry
Scott Dueser
Chairman of the Board, President &
Chief Executive Officer
38 43
J. Bruc...
Years with Company Years in Industry
Michele Stevens
Senior Vice President
Advertising and Marketing
16 32
Courtney Jordan...
Experienced Regional CEOs & Presidents
Years with Company Years in Industry
Marelyn Shedd, Abilene 23 31
Mike Mauldin, Her...
Board of Directors
Years as Board
Member
Committee
Appointment
Steven L. Beal
Director and Former President and COO of
Con...
Board of Directors
Years as Board
Member
Committee
Appointment
Ron Giddiens
G&G Investments
4 Audit
Tim Lancaster
Presiden...
Independent Public Auditors
Mr. Joe Canon
11
Mr. Ross Smith
12
Forward Looking Statement
The numbers, as of and for the three months ended March 31, 2014, contained within this presenta...
2013 Financial Review
Earnings
$53.1 $53.8
$59.7
$68.4
$74.2
$78.9
2008 2009 2010 2011 2012 2013
27th Consecutive Year of Increased Earnings
FFIN Earning...
$1.71 $1.72
$1.91
$2.17
$2.36
$2.48
2008 2009 2010 2011 2012 2013
Strong Shareholder Earnings
Basic Earnings Per Share
2007 2008 2009 2010 2011 2012 2013
First
Financial 52.83% 50.76% 50.11% 49.49% 48.37% 48.14% 50.19%
Peer Group 63.12% 68.1...
3.00%
3.25%
3.50%
3.75%
4.00%
4.25%
4.50%
4.75%
5.00%
4th
Qtr. '10
1st
Qtr. '11
2nd
Qtr. '11
3rd
Qtr. '11
4th
Qtr. '11
1st...
1.72% 1.74% 1.72% 1.75% 1.78% 1.75%
1.64%
0.87%
-0.03% -0.18% 0.24%
0.79%
0.98% 1.05%
2007 2008 2009 2010 2011 2012 2013
F...
15.87%
15.27%
13.63% 13.74%
14.44%
13.85% 13.75%
9.45%
-1.83% -2.57%
0.88%
7.27%
8.56% 8.99%
2007 2008 2009 2010 2011 2012...
12-31-13 03-31-14
To be considered
well Capitalized
Tier 1
Leverage Ratio
9.84 9.95 > 5.00
Tier 1 Risk
Based Capital Ratio...
$3,212 $3,279
$3,776
$4,121
$4,500
$5,222
2008 2009 2010 2011 2012 2013
Growth in Total Assets
Asset Performance
(in milli...
$84 $77 $73 $81 $66 $68 $76
$182 $191 $175 $191 $218 $273 $334$32 $52 $0
$394 $391 $406 $429 $427
$510
$590
$836 $855 $860...
2008 2009 2010 2011 2012 2013
First
Financial 0.80% 1.46% 1.53% 1.64% 1.22% 1.16%
Peer Group 2.63% 5.41% 5.37% 4.59% 3.67%...
$797 $836 $959 $1,102 $1,312 $1,362
$1,786 $1,849
$2,154
$2,233
$2,321
$2,773
2008 2009 2010 2011 2012 2013
Non Interest B...
1st Quarter 2014 Summary
$13.7 $13.7
$16.3
$17.8
$18.6
$22.3
2009 2010 2011 2012 2013 2014
1st Quarter Earnings
(in millions)FFIN Earnings
Account Growth
Net New Growth in 2011 – 4,036 Accounts
Net New Growth in 2012 – 1,219 Accounts
Net New Growth in 2013 –...
$0.44 $0.44
$0.52
$0.56
$0.59
$0.70
2009 2010 2011 2012 2013 2014
Shareholder Earnings – 1st Quarter
Basic Earnings Per Sh...
$1,631 $1,664
$1,784
$1,912
$2,232
$2,465
2008 2009 2010 2011 2012 2013
Growth in Trust Assets
Total Trust Assets – Book V...
$9,441 $9,083
$10,808
$12,617
$14,464
$16,317
2008 2009 2010 2011 2012 2013
Total Trust Fees
Growth in FFTAM Fees (in thou...
$745
$1,159
$1,835
$2,167
$2,648
2009 2010 2011 2012 2013
Growth in Mineral Management
Revenue from Mineral Management
(in...
$2,810 $2,631
$3,254
$4,176
$5,183
$6,142
2008 2009 2010 2011 2012 2013
Growth in FFTAM Income
Net Trust Income
(in thousa...
Managed Equity Styles
Equity Income
Core Domestic
Core Diversified
Core World
Strategic Growth
39
$606
$739
$1,015
$1,225
$1,422
$1,792
2009 2010 2011 2012 2013 2014
Growth in FFTAM Income
Net Trust Income – 1st Quarter
...
$3,212 $3,279
$3,776
$4,121
$4,500
$5,222
2008 2009 2010 2011 2012 2013
Growth in Total Assets
Asset Performance
(in milli...
Challenges
Overwhelming number of unreasonable and ineffective
regulations from Washington
Inept federal government
Sta...
Opportunities
 Loan Growth
 Mortgage Lending
 Trust Services
 Treasury Management
 Mobile Banking
 Lower Efficiency ...
Consolidation of Charters
Was very timely
Regulatory compliance
Technology complexities
Cost savings
Continue to oper...
Orange Acquisition – now Southeast Region
Effective May 31, 2013
5 locations in Orange, Jefferson and Newton Counties
4...
Beaumont – 61st Branch
49
HEB – San Angelo
I-20 - Weatherford
51
Keller – Southlake – 1491 Keller Parkway
52
Roby – Remodeled in 2013
53
Ranger – Remodeled in 2014
54
Fort Worth – Forest Park Blvd. and Rosedale
55
Fort Worth – Forest Park Blvd. and Rosedale
56
57
$53.1 $53.8
$59.7
$68.4
$74.2
$78.9
2008 2009 2010 2011 2012 2013
27th Consecutive Year of Increased Earnings
FFIN Earning...
Stock cost in January 2013 $39,010
Dividend declared ($1.03 x 1,000 shares) $ 1,030
Increase in stock price during 2013
($...
Strong Stock Performance
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
FFIN S&P 500 NASDAQ Dow Jones
Jan . ‘07 Mar. ’14Dec...
Dividends Per Share
$0.84
$0.89 $0.91 $0.91
$0.95
$0.99 $1.03
2007 2008 2009 2010 2011 2012 2013
Annual Dividends Declared...
Stock Split and Increased Cash Dividend
 Two-for-One Stock Split – 100% Stock Dividend
 Effective Shareholders of record...
www.ffin.com
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
2014 FFIN Annual Meeting Presentation
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2014 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.
  • 2014 FFIN Annual Meeting Presentation

    1. 1. 2014 Annual Shareholder Meeting
    2. 2. Years with Company Years in Industry Scott Dueser Chairman of the Board, President & Chief Executive Officer 38 43 J. Bruce Hildebrand, CPA Executive Vice President Chief Financial Officer 11 35 Gary L. Webb Executive Vice President Operations 11 25 Gary S. Gragg Executive Vice President Credit Administration 23 35 Marna Yerigan Executive Vice President Credit Administration 3 30 Ron Butler Executive Vice President Chief Administrative Officer 21 32 Senior Management at First Financial 2
    3. 3. Years with Company Years in Industry Michele Stevens Senior Vice President Advertising and Marketing 16 32 Courtney Jordan Senior Vice President Training 5 18 Bob Goodner Senior Vice President & Compliance Officer Compliance 12 35 Luke Longhofer Senior Vice President & Loan Review Officer Credit Administration 3 10 Brandon Harris Senior Vice President Appraisal Services 1 15 Kirk Thaxton, CTFA President, First Financial Trust & Asset Management 27 31 Senior Management at First Financial 3
    4. 4. Experienced Regional CEOs & Presidents Years with Company Years in Industry Marelyn Shedd, Abilene 23 31 Mike Mauldin, Hereford 11 36 Kirby Andrews, Sweetwater 23 26 Trent Swearengin, Eastland 14 16 Mike Boyd, San Angelo 38 42 Tom O’Neil, Cleburne 15 34 Matt Reynolds, Cleburne 9 32 Ron Mullins, Stephenville 8 35 Jay Gibbs, Weatherford 12 40 Mark Jones, Southlake 13 36 Ken Williamson, Mineral Wells 12 43 Robert Pate, Huntsville 16 33 Fred Wren, Huntsville 2 35 Stephen Lee, Southeast Region 7 21 Gary Tucker, First Technology Services 23 39 4
    5. 5. Board of Directors Years as Board Member Committee Appointment Steven L. Beal Director and Former President and COO of Concho Resources Inc. 4 Executive Compensation Nominating/Corporate Governance Tucker S. Bridwell President, Mansefeldt Investment Corporation 7 Lead Director / Executive Nominating / Corporate Governance David Copeland President, SIPCO, Inc. and Shelton Family Foundation 16 Executive / Audit Nominating/Corporate Governance F. Scott Dueser Chairman of the Board, President and CEO 23 Executive Murray Edwards Principal, The Edwards Group 8 Executive / Audit Nominating /Corporate Governance
    6. 6. Board of Directors Years as Board Member Committee Appointment Ron Giddiens G&G Investments 4 Audit Tim Lancaster President and CEO Hedrick Health System 1 Audit Kade L. Matthews Ranching and Investments 15 Compensation Ross H. Smith, Jr. Chairman and President Akrotex, Inc. - Proposed - Compensation Johnny E. Trotter President and CEO Livestock Investors, Ltd. 10 Executive Compensation Nominating/Corporate Governance
    7. 7. Independent Public Auditors
    8. 8. Mr. Joe Canon 11
    9. 9. Mr. Ross Smith 12
    10. 10. Forward Looking Statement The numbers, as of and for the three months ended March 31, 2014, 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.
    11. 11. 2013 Financial Review
    12. 12. Earnings
    13. 13. $53.1 $53.8 $59.7 $68.4 $74.2 $78.9 2008 2009 2010 2011 2012 2013 27th Consecutive Year of Increased Earnings FFIN Earnings (in millions)
    14. 14. $1.71 $1.72 $1.91 $2.17 $2.36 $2.48 2008 2009 2010 2011 2012 2013 Strong Shareholder Earnings Basic Earnings Per Share
    15. 15. 2007 2008 2009 2010 2011 2012 2013 First Financial 52.83% 50.76% 50.11% 49.49% 48.37% 48.14% 50.19% Peer Group 63.12% 68.12% 69.53% 67.33% 65.57% 65.77% 68.51% Working Harder and Smarter Efficiency Ratio (FFIN vs. Peers)
    16. 16. 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 4th Qtr. '10 1st Qtr. '11 2nd Qtr. '11 3rd Qtr. '11 4th Qtr. '11 1st Qtr. '12 2nd Qtr. '12 3rd Qtr. '12 4th Qtr. '12 1st Qtr. '13 2nd Qtr. '13 3rd Qtr. '13 4th Qtr. '13 1st Qtr. '14 First Financial Peer Group Net Interest Margin Quarterly Interest Margin
    17. 17. 1.72% 1.74% 1.72% 1.75% 1.78% 1.75% 1.64% 0.87% -0.03% -0.18% 0.24% 0.79% 0.98% 1.05% 2007 2008 2009 2010 2011 2012 2013 FFIN Outperforms Peers Percentage Return on Average Assets PeerGroup FirstFinancial
    18. 18. 15.87% 15.27% 13.63% 13.74% 14.44% 13.85% 13.75% 9.45% -1.83% -2.57% 0.88% 7.27% 8.56% 8.99% 2007 2008 2009 2010 2011 2012 2013 Strong Return on Capital Percentage Return on Average Equity PeerGroup FirstFinancial
    19. 19. 12-31-13 03-31-14 To be considered well Capitalized Tier 1 Leverage Ratio 9.84 9.95 > 5.00 Tier 1 Risk Based Capital Ratio 15.82 16.24 > 6.00 Risk Based Capital Ratio 16.92 17.39 > 10.00 Capital Ratios
    20. 20. $3,212 $3,279 $3,776 $4,121 $4,500 $5,222 2008 2009 2010 2011 2012 2013 Growth in Total Assets Asset Performance (in millions)
    21. 21. $84 $77 $73 $81 $66 $68 $76 $182 $191 $175 $191 $218 $273 $334$32 $52 $0 $394 $391 $406 $429 $427 $510 $590 $836 $855 $860 $990 $1,076 $1,238 $1,689 2007 2008 2009 2010 2011 2012 2013 Real Estate Commercial Student Consumer Agricultural Loan Performance Growth in FFIN Total Loans (in millions) $1,566 $1,514 $1,690 $1,787 $1,528 $2,689 $2,089
    22. 22. 2008 2009 2010 2011 2012 2013 First Financial 0.80% 1.46% 1.53% 1.64% 1.22% 1.16% Peer Group 2.63% 5.41% 5.37% 4.59% 3.67% 2.72% Sound Lending Practices Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)
    23. 23. $797 $836 $959 $1,102 $1,312 $1,362 $1,786 $1,849 $2,154 $2,233 $2,321 $2,773 2008 2009 2010 2011 2012 2013 Non Interest Bearing Interest Bearing Deposit Growth Growth in FFIN Total Deposits (in millions) $4,135 $2,583 $2,685 $3,113 $3,335 $3,633
    24. 24. 1st Quarter 2014 Summary
    25. 25. $13.7 $13.7 $16.3 $17.8 $18.6 $22.3 2009 2010 2011 2012 2013 2014 1st Quarter Earnings (in millions)FFIN Earnings
    26. 26. Account Growth Net New Growth in 2011 – 4,036 Accounts Net New Growth in 2012 – 1,219 Accounts Net New Growth in 2013 – 3,308 Accounts* Net New Growth in 2014 – 2,600 Accounts  December 31, 2011 December 31, 2012 December 31, 2013* March 31, 2014 Total Number of Accounts 204,063 205,282 208,590 226,527 *(Excluding Orange Acquisition)
    27. 27. $0.44 $0.44 $0.52 $0.56 $0.59 $0.70 2009 2010 2011 2012 2013 2014 Shareholder Earnings – 1st Quarter Basic Earnings Per Share
    28. 28. $1,631 $1,664 $1,784 $1,912 $2,232 $2,465 2008 2009 2010 2011 2012 2013 Growth in Trust Assets Total Trust Assets – Book Value (in millions)
    29. 29. $9,441 $9,083 $10,808 $12,617 $14,464 $16,317 2008 2009 2010 2011 2012 2013 Total Trust Fees Growth in FFTAM Fees (in thousands)
    30. 30. $745 $1,159 $1,835 $2,167 $2,648 2009 2010 2011 2012 2013 Growth in Mineral Management Revenue from Mineral Management (in thousands)
    31. 31. $2,810 $2,631 $3,254 $4,176 $5,183 $6,142 2008 2009 2010 2011 2012 2013 Growth in FFTAM Income Net Trust Income (in thousands)
    32. 32. Managed Equity Styles Equity Income Core Domestic Core Diversified Core World Strategic Growth
    33. 33. 39
    34. 34. $606 $739 $1,015 $1,225 $1,422 $1,792 2009 2010 2011 2012 2013 2014 Growth in FFTAM Income Net Trust Income – 1st Quarter (in thousands)
    35. 35. $3,212 $3,279 $3,776 $4,121 $4,500 $5,222 2008 2009 2010 2011 2012 2013 Growth in Total Assets Asset Performance (in millions)
    36. 36. Challenges Overwhelming number of unreasonable and ineffective regulations from Washington Inept federal government Stagnant national economy Low interest rate environment Maintaining net interest margin Keep nonperforming assets to a minimum
    37. 37. Opportunities  Loan Growth  Mortgage Lending  Trust Services  Treasury Management  Mobile Banking  Lower Efficiency Ratio  Potential Acquisitions
    38. 38. Consolidation of Charters Was very timely Regulatory compliance Technology complexities Cost savings Continue to operate as regions with local management, advisory boards and decisions
    39. 39. Orange Acquisition – now Southeast Region Effective May 31, 2013 5 locations in Orange, Jefferson and Newton Counties 41% market share in home market of Orange County $443 million in Assets $293 million in loans $386 million in deposits Excellent addition and provides diversification Vibrant economy
    40. 40. Beaumont – 61st Branch 49
    41. 41. HEB – San Angelo
    42. 42. I-20 - Weatherford 51
    43. 43. Keller – Southlake – 1491 Keller Parkway 52
    44. 44. Roby – Remodeled in 2013 53
    45. 45. Ranger – Remodeled in 2014 54
    46. 46. Fort Worth – Forest Park Blvd. and Rosedale 55
    47. 47. Fort Worth – Forest Park Blvd. and Rosedale 56
    48. 48. 57
    49. 49. $53.1 $53.8 $59.7 $68.4 $74.2 $78.9 2008 2009 2010 2011 2012 2013 27th Consecutive Year of Increased Earnings FFIN Earnings (in millions)
    50. 50. Stock cost in January 2013 $39,010 Dividend declared ($1.03 x 1,000 shares) $ 1,030 Increase in stock price during 2013 ($66.11 from $39.01 X 1,000 shares) $2210,720 2013 return on investment 72.11% 2012 return on investment 19.65% 2011 return on investment 0.61% 2010 return on investment -2.99% 2009 return on investment 0.69% 5 year compound average return 14.01% Total Return on Investment $27,100 Assume you owned 1,000 shares of FFIN stock on January 1, 2013…
    51. 51. Strong Stock Performance -100.00% -50.00% 0.00% 50.00% 100.00% 150.00% FFIN S&P 500 NASDAQ Dow Jones Jan . ‘07 Mar. ’14Dec . ‘09Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11 Dec. ’12
    52. 52. Dividends Per Share $0.84 $0.89 $0.91 $0.91 $0.95 $0.99 $1.03 2007 2008 2009 2010 2011 2012 2013 Annual Dividends Declared Per Share
    53. 53. Stock Split and Increased Cash Dividend  Two-for-One Stock Split – 100% Stock Dividend  Effective Shareholders of record as of May 15, 2014  Distribution Date June 2, 2014  Increase cash divided to $0.14 per quarter – 7.7% increase  Shareholders of record as of June 16, 2014  Dividend payable July 1, 2014
    54. 54. www.ffin.com
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