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2nd Quarter 2014
Forward Looking Statement
The numbers, as of and for the quarter and six months ended June 30, 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.
3
Who We Are
$5.4 billion financial holding company headquartered in Abilene, Texas
Group of 12 separate regions
124-year history
Growth markets include 50 mile radius of
the larger cities of Texas
4
Recognitions
ABA Banking Journal - #8 – Top Performing mid-sized banks ($1B - $10B) – May 2014
2014 Proven Performers Award Winner – Bank Intelligence Solutions
KBW Honor Roll – One of thirty-one banks named – April 2014
SNL Financial #7 Best Performing Regional Bank – April 2014
Nifty 50: Bank Director Magazine - #12 – Based on Return on Equity / Average Tangible Equity – January 2014
Sandler O’Neil 2013 Bank & Thrift Small-Cap All Stars – September 2013
American Banker - #14 – Based on three year average Return on Equity – August 2013
5
6
What Makes Us Different
One Bank, Twelve Regions Concept
One Bank Consolidation of backroom operations, technology, and
compliance (lower efficiency ratio)
Twelve 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
7
FFIN’s Unique Positioning in Texas
Bank Key Markets
Comerica, Inc. DFW, Austin, Houston, California, Michigan, Florida, Mexico
Frost San Antonio, Austin, Corpus Christi, DFW, Rio Grande, West Texas
Independent North and Central Texas
International Bancshares Corp. Rio Grande, Houston, San Antonio, Oklahoma
Prosperity Houston, DFW, Austin, West Texas, South Central Texas, and Oklahoma
Southside East Texas
Texas Capital DFW, Austin, San Antonio, and Houston
ViewPoint Financial Dallas
8
Orange Acquisition
Effective May 31, 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* $386 million in deposits $293.3 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 May 31, 2013
8
10
Texas: Large and Growing
Five most populous states:* Growth (2002 – 2012)
California 38.0 million 8.3%
Texas 26.1 million 19.7%
New York 19.6 million 2.2%
Florida 19.3 million 15.9%
Illinois 12.9 million 2.2%
* U.S. Census Bureau
11
Target Markets – Population Growth
Population growth (2002-2012) in FFIN expansion markets:*
Texas 19.7%
Bridgeport & Wise County 24.6%
Fort Worth & Tarrant County 25.8%
Cleburne & Johnson County 31.8%
Weatherford, Willow Park, Aledo & Parker County 29.6%
Granbury & Hood County 31.8%
Stephenville & Erath County 22.6%
* U.S. Census Bureau
12
Texas Benefits
State unemployment rate at 5.1%, state’s lowest rate
since November 2008
Only Texas and New York have restored all the jobs
lost when recession hit in 2007
CEO Magazine ranks Texas best state for business –
for seventh consecutive year
Texas created more jobs (310,000) during the prior
twelve months, more than any other state
Texas created more private sector jobs than any other
state during the past decade
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)
$1,872 M 15 43% 1
First Financial Bank(Hereford)
$158 M 1 43% 1
First Financial Bank(Eastland, Ranger, Rising Star, Cisco)
$232M 4 58% 1
First Financial Bank(Sweetwater, Roby, Trent, Merkel)
$181 M 4 34% 1
First Financial Bank(San Angelo)
$483M 3 19% 2
TOTALS $2,926M 27* Data as of 06-30-14** Data as of 06-30-13
13
Expansion Markets REGION ASSET SIZE* LOCATIONS
DEPOSIT MARKET
SHARE**
MARKET SHARE
RANK**
First Financial Bank (Cleburne, Burleson, Alvarado, Midlothian, Waxahachie)
$366M 6 20% 1
First Financial Bank
(Southlake, Trophy Club, Keller, Grapevine)
(Bridgeport, Decatur, Boyd)
$394M 4
3
5%
21%
5
1
First Financial Bank (Stephenville, Granbury, Glen Rose, Acton)
$410M 6 21% 2
First Financial Bank(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)
$422M 7 24% 1
First Financial Bank(Mineral Wells)
$251M 1 33% 1
First Financial Bank(Huntsville)
$170M 1 19% 2
First Financial Bank(Orange, Mauriceville, Newton, Port Arthur, Vidor)
$479M 5 41% 1
TOTALS $2,492M 33 * Data as of 06-30-14
** Data as of 06-30-13
14
Recent De Novo Growth Lubbock: Office of Trust Company (Opening 3rd Qtr. 2014)
New Waverly: Branch of Huntsville (Opening 3rd Qtr. 2014)
Beaumont: Under Construction (Opening in 3rd Qtr. 2014)
Weatherford: I-20 Branch – June 2013 (New Building Under Construction – Opening 1st Qtr.
2015)
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 (Building New Building – Opening 2nd Qtr. 2015)
15
Fort Worth – Forest Park Blvd. and Rosedale
1615
Fort Worth – Forest Park Blvd. and Rosedale
1716
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
18
Years with Company Years in Industry
Michele Stevens Senior Vice President Advertising and Marketing
16 32
Monica Houston Senior Vice President Training
20 20
Larry Kentz Senior Vice President & Compliance Officer Compliance
1 35
Luke Longhofer Senior Vice President & Loan Review Officer Credit Administration
3 10
Brandon Harris Senior Vice President Appraisal Services
2 15
Kirk Thaxton, CTFA President, First Financial Trust & Asset Management
27 31
Senior Management at First Financial
19
Experienced Regional CEOs & PresidentsYears with Company Years in Industry
Marelyn Shedd, Abilene 23 30
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
Ron Mullins, Stephenville 8 35
Jay Gibbs, Weatherford 12 39
Mark Jones, Southlake 13 36
Ken Williamson, Mineral Wells 12 42
Robert Pate, Huntsville 16 33
Fred Wren, Huntsville 2 35
Stephen Lee, Southeast Region 6 20
Gary Tucker, First Technology Services 23 39
20
21
2009 2010 2011 2012 2013 2014
$3,279
$3,776
$4,121
$4,502
$5,222$5,446
Chart Title
Growth in Total Assets
Asset Performance
(in millions)
*As of June 30, 2014
22
2009 2010 2011 2012 2013 2014
$836 $959 $1,102 $1,312 $1,362 $1,446
$1,849$2,154
$2,233$2,321
$2,773 $2,873
Non Interest Bearing Interest Bearing
Deposit Growth
Growth in FFIN Total Deposits (in millions)
$4,319
$2,685
$3,113$3,335
$3,633
$4,135
*As of June 30, 2014
23
Deposit Products
Time16.1% De
mand
33.5%
Money
Market39.1%
Sav-ings11.3%
*As of June 30, 2014
Account Growth
Net Growth in 2011 – 4,036 Accounts
Net Growth in 2012 – 1,219 Accounts
Net Growth in 2013 – 3,308 Accounts*
Net Growth in 2014 – 7,122 Accounts
December 31, 2011
December 31, 2012
December 31, 2013*
June 30, 2014
Total Number of Accounts
204,063 205,282 208,590 231,049
24
*(Excluding Orange Acquisition)
2009 2010 2011 2012 2013 2014$73 $81 $66 $68 $76 $75
$175 $191 $218 $273 $334 $347
$406 $429 $427 $510
$590 $613
$860 $990 $1,076
$1,238
$1,689 $1,752
Real Estate
Commercial
Consumer
Agricultural
Loan Performance
Growth in FFIN Total Loans (in millions)
$1,514$1,690
$1,787
$2,089
$2,787
25
$2,689
*As of June 30, 2014
26
Overview of Loan Portfolio Commercial
21.9% Agricul-ture2.7%
Consumer12.5%
Real Es-tate
62.9%
*As of June 30, 2014
Residential Development & Construction 7.4%
1-4 Family 46.9%
Commercial Development and Construc-tion
3.3%
Commercial R/E 28.8%
Other R/E 13.6%
Chart Title
27
Breakdown of R/E Loan Portfolio
*As of June 30, 2014
28
2009 2010 2011 2012 2013 2014
End of Period 56.4 54.3 53.6 57.5 65.0 64.5
Average
Balances59.5 56.0 54.6 56.4 64.3 64.7
Loan to Deposit Ratio
*As of June 30, 2014
29
Less than
1 year
1 to 3
years
3 to 5
years
5 to 10
years
10 to 15
years
Over 15
years
34.6% 4.2% 5.0% 15.4% 18.4% 12.9% 9.5%
Variable and Fixed Rate Loans
Loan Portfolio Interest Rate Risk Analysis
Variable
RateFixed Rate
*As of June 30, 2014
2009 2010 2011 2012 2013 2014
FirstFinancial 1.46% 1.53% 1.64% 1.22% 1.16% 0.93%*
Peer Group 5.41% 5.37% 4.59% 3.67% 2.71% 2.54%**
Sound Lending Practices
Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)
30
*As of June 30, 2014**As of March 31, 2014
31
2009 2010 2011 2012 2013 2014
$27,612
$31,106
$34,315 $34,839 $33,900$35,892
$11,419$8,962
$6,626$3,484 $3,753 $2,814
ALLL Provision
Allowance for Loan Losses and Provision for Loan Losses
(in thousands)
*As of June 30, 2014
Summary of Bond Portfolio
Agencies 5.73%Corporates 4.30%
Muni 48.70%
MBSs 18.49%
CMOs 22.78%
32
*As of June 30, 2014
Municipal Allocation by State State Percentage
Texas 71.32%
Michigan 2.47%
Ohio 2.46%
Washington 2.18%
Wisconsin 2.07%
New York 1.61%
Illinois 1.44%
Florida 1.41%
Colorado 1.33%
New Jersey 1.14%
Louisiana 1.14%
Massachusetts 1.07%
Other 38 states 10.36%
33
*As of June 30, 2014
34
2009 2010 2011 2012 2013 2014
$1,664 $1,783$1,912
$2,233
$2,465$2,618Chart Title
Growth in Trust Assets
Total Trust Assets – Book Value (in millions)
*As of June 30, 2014
35
2009 2010 2011 2012 2013 2014
$9,083
$10,808
$12,671
$14,464
$16,317
$4,242 $5,198
$6,254 $7,124
$7,746
$9,125
thru June 30th
Total Trust Fees
Growth in FFTAM Fees (Full year and 1st 6 months) (in thousands)
2009 2010 2011 2012 2013 2014
$53.8$59.7
$68.4
$74.2$78.9
$27.3 $27.9$32.8
$36.1 $38.1$43.5
27th Consecutive Year of Increased Earnings
FFIN Earnings (Full year and 1st 6 months) (in millions)
36
thru June 30th
37
2009 2010 2011 2012 2013 2014
$0.86$0.95
$1.09$1.18
$1.24
$0.44 $0.45 $0.52
$0.58 $0.60 $0.68
Strong Shareholder Earnings
Basic Earnings Per Share (Full year and 1st 6 months)
thru June 30th
*Per share amounts reflect the 2 for 1 stock split that was announced April 22, 2014 for shareholders of record as of May 15, 2014, distributed on June 2, 2014.
2009 2010 2011 2012 2013
1.72% 1.75% 1.78% 1.75%1.64%
-0.18%
0.24%
0.79%
0.98% 1.05%
FFIN Outperforms Peers
Percentage Return on Average Assets
Pe
er
Gro
up
Fir
st
Fin
an
cia
l
38
2009 2010 2011 2012 2013
13.63% 13.74%14.44%
13.85% 13.75%
-2.57%
0.88%
7.27%
8.56% 8.89%
Strong Return on Capital
Percentage Return on Average EquityP
ee
r G
rou
p
Fir
st
Fin
an
cia
l
39
40
2010 2011 2012 2013 2014
Shareholders’Equity 441,688 508,537 556,963 587,647 640,036
As a Percent of Total
Assets11.70 12.34 12.37 11.25 11.75
Tangible
Capital369,164 436,415 484,990 490,163 542,607
Tier 1
Leverage Ratio10.28 10.33 10.60 9.84 9.99
Tier 1 Risk
Based Capital Ratio17.01 17.49 17.43 15.82 16.15
Risk Based
Capital Ratio18.26 18.74 18.68 16.92 17.30
Capital & Capital Ratios
(dollars in thousands)
*As of June 30, 2014
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
2nd Qtr. '14
3.00%
3.25%
3.50%
3.75%
4.00%
4.25%
4.50%
4.75%
5.00%
First Financial Peer Group
Net Interest Margin
Quarterly Interest Margin
41
2009 2010 2011 2012 2013 2014
FirstFinancial 50.11% 49.49% 48.37% 48.14% 50.19% 49.22%*
Peer Group 69.53% 67.33% 67.01% 66.61% 68.80% 67.94%**
Working Harder and Smarter
Efficiency Ratio (FFIN vs. Peers)
42
*As of June 30, 2014
**As of March 31, 2014
Stock cost in January 2013 $19,505
Dividend declared ($0.52 x 1,000 shares) $ 515
Increase in stock price during 2013($33.06 from $19.51 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
$13,550
Assume you owned 1,000 shares of FFIN stock on January 1, 2013…
43
*Adjusted for 2 for 1 stock split distributed June 2, 2014.
Dividends Per Share
2009 2010 2011 2012 2013
$0.45 $0.46$0.48 $0.50
$0.52
Chart Title
Annual Dividends Declared Per Share*
44
*Dividend amounts reflect the 2 for 1 stock split that was announced April 22, 2014 for shareholders of record as of May 15, 2014, distributed on June 2, 2014.
Strong Stock Performance
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
FFIN S&P 500 NASDAQ Dow JonesJan . ‘07 Jun. ’14Dec . ‘09Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11 Dec. ’12
45
Challenges
Regulatory reform from Washington
Stagnant national economy
Inept federal government
Low interest rate environment
Maintaining net interest margin
Keep nonperforming assets to a minimum
46
Opportunities
Loan Growth
Mortgage Lending
Trust Services
Treasury Management
Mobile Banking
Lower Efficiency Ratio
Potential Acquisitions
47
www.ffin.com