4th Quarter 2014
Forward Looking Statement
The numbers, as of and for the quarter and year ended December 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.
2
Who We Are
$5.8 billion financial holding company
headquartered in Abilene, Texas
Group of 12 separate regions
125-year history
Growth markets include 50 mile radius of
the larger cities of Texas
3
Recognitions
Sandler O’Neil Bank & Thrift Small-Cap All Stars – September
2014
American Banker - #11 – Based on three year average Return on
Equity – August 2014
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
4
5
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
6
FFIN’s Unique Positioning in Texas
Bank Key Markets
Comerica DFW, Austin, Houston, California, Michigan, Florida, Mexico
Green Houston, Austin, Dallas (New Public Company – August 2014)
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 (New Public Company – November 2014)
Veritex Dallas (New Public Company – October 2014)
7
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
9
Texas: Large and Growing
Five most populous states:* Growth
(2003 – 2013)
California 38.3 million 8.7%
Texas 26.5 million 20.1%
New York 19.7 million 2.5%
Florida 19.6 million 15.0%
Illinois 12.9 million 2.6%
* U.S. Census Bureau
10
Target Markets – Population Growth
Population growth (2003-2013) in FFIN expansion markets:*
Texas 20.1%
Bridgeport & Wise County 13.2%
Fort Worth & Tarrant County 23.2%
Cleburne & Johnson County 12.0%
Weatherford, Willow Park, Aledo & Parker County 25.6%
Granbury & Hood County 18.2%
Stephenville & Erath County 17.9%
* U.S. Census Bureau
11
Texas Benefits
State unemployment rate at 4.1%, 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)
$1,830M 15 48% 1
First Financial Bank
(Hereford)
$165M 1 42% 1
First Financial Bank
(Eastland, Ranger, Rising Star, Cisco)
$241M 4 66% 1
First Financial Bank
(Sweetwater, Roby, Trent, Merkel)
$200M 4 36% 1
First Financial Bank
(San Angelo)
$655M 3 19% 2
TOTALS $3,091M 27 * Data as of 12-31-14
** Data as of 06-30-14
12
Expansion Markets
REGION ASSET SIZE* LOCATIONSDEPOSIT MARKET
SHARE**
MARKET SHARE
RANK**
First Financial Bank
(Cleburne, Burleson, Alvarado)
(Midlothian, Waxahachie)
$419M 4
2
20%
4%
2
6
First Financial Bank
(Southlake, Trophy Club, Keller, Grapevine)
(Bridgeport, Decatur, Boyd)
$401M 4
3
5%
19%
5
3
First Financial Bank
(Stephenville, Granbury, Glen Rose, Acton)
$473M 6 22% 2
First Financial Bank
(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)
$494M 7 23% 1
First Financial Bank
(Mineral Wells)
$263M 1 38% 1
First Financial Bank
(Huntsville, New Waverly)
$192M 2 19% 2
First Financial Bank
(Orange, Mauriceville, Vidor)
(Newton, Port Arthur, Beaumont)
$483M 3
3
41%
10%
1
5
TOTALS $2,725M 35* Data as of 12-31-14
** Data as of 06-30-14
13
Recent De Novo Growth Lubbock: Office of Trust Company – September 2014
New Waverly: Branch of Huntsville – August 2014
Beaumont: Branch of Orange – August 2014
Weatherford: I-20 Branch – June 2013 (New Building Opened January 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)
14
Fort Worth – Forest Park Blvd. and Rosedale
15
Fort Worth – Forest Park Blvd. and Rosedale
16
Years with Company Years in Industry
Scott DueserChairman of the Board, President &
Chief Executive Officer
38 43
J. Bruce Hildebrand, CPAExecutive Vice President
Chief Financial Officer
12 36
Gary L. WebbExecutive Vice President
Operations
12 26
Gary S. GraggExecutive Vice President
Credit Administration
24 36
Marna YeriganExecutive Vice President
Credit Administration
4 30
Ron ButlerExecutive Vice President
Chief Administrative Officer
22 33
Stan LimerickExecutive Vice President
Chief Information Officer
- 35
Senior Management at First Financial
17
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
28 31
Senior Management at First Financial
18
Experienced Regional CEOs & PresidentsYears with Company Years in Industry
Marelyn Shedd, Abilene 23 31
Mike Mauldin, Hereford 12 37
Kirby Andrews, Sweetwater 24 27
Trent Swearengin, Eastland 15 17
Mike Boyd, San Angelo 39 42
Tom O’Neil, Cleburne 16 34
Ron Mullins, Stephenville 8 36
Jay Gibbs, Weatherford 13 40
Mark Jones, Southlake 14 37
Ken Williamson, Mineral Wells 13 43
Robert Pate, Huntsville 17 33
Fred Wren, Huntsville 2 35
Stephen Lee, Southeast Region 7 25
19
20
$3,279
$3,776
$4,121
$4,502
$5,222
$5,848
2009 2010 2011 2012 2013 2014
Growth in Total Assets
Asset Performance
(in millions)
21
$836 $959 $1,102 $1,312 $1,362$1,570
$1,849$2,154
$2,233$2,321
$2,773$3,180
2009 2010 2011 2012 2013 2014
Non Interest Bearing Interest Bearing
Deposit Growth
Growth in FFIN Total Deposits (in millions)
$4,750
$2,685
$3,113$3,335
$3,633
$4,135
22
Deposit Products
Time13.7% Demand
33.1%
Money Market42.3%
Savings10.9%
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 – 10,687 Accounts
December 31,
2011
December 31,
2012
December 31,
2013*
December 31,
2014
Total Number of
Accounts
204,063 205,282 208,590 234,614
23
*(Excluding Orange Acquisition)
$73 $81 $66 $68 $76 $106$175 $191 $218 $273 $334 $361 $406 $429 $427
$510 $590
$640
$860 $990 $1,076
$1,238
$1,689 $1,831
Real Estate
Commercial
Consumer
Agricultural
Loan Performance
Growth in FFIN Total Loans (in millions)
$1,514$1,690
$1,787
$2,089
$2,938
24
$2,689
25
Overview of Loan Portfolio
Commercial 21.8%
Agriculture3.6%
Consumer12.3%
Real Estate62.3%
Note: Oil & Gas Exposure 3.0%
Residential Development & Construction
6.8%
1-4 Family 46.6%
Commercial Development and
Construction3.6%
Commercial R/E 28.6%
Other R/E 14.4%
26
Breakdown of R/E Loan Portfolio
27
2009 2010 2011 2012 2013 2014
End ofPeriod 56.4 54.3 53.6 57.5 65.0 61.8
Average
Balances59.5 56.0 54.6 56.4 64.3 64.1
Loan to Deposit Ratio
28
Less than
1 year
1 to 3
years
3 to 5
years
5 to 10
years
10 to 15
years
Over 15
years
37.6% 4.4% 4.7% 14.2% 18.1% 12.3% 8.7%
Variable and Fixed Rate Loans
Loan Portfolio Interest Rate Risk Analysis
Variable
RateFixed Rate
2009 2010 2011 2012 2013 2014
FirstFinancial 1.46% 1.53% 1.64% 1.22% 1.16% 0.74%
Peer Group 5.41% 5.37% 4.59% 3.67% 2.71% 2.19%*
Sound Lending Practices
Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)
29
*As of Sept. 30, 2014
30
$27,612
$31,106
$34,315 $34,839 $33,900
$36,824
$11,419$8,962
$6,626
$3,484 $3,753 $4,465
2009 2010 2011 2012 2013 2014
ALLL Provision
Allowance for Loan Losses and Provision for Loan Losses
(in thousands)
Summary of Bond Portfolio
Agencies 5.63%
Corporates 3.88%
Muni 47.50%
MBSs 19.73%
CMOs 23.24%
Treasuries 0.02%
31
Municipal Allocation by State
State Percentage
Texas 72.72%
Wisconsin 2.37%
Ohio 2.29%
Michigan 2.24%
Washington 1.99%
Florida 1.67%
New York 1.50%
Illinois 1.31%
Colorado 1.24%
Louisiana 1.05%
Massachusetts 1.02%
Other 39 States 10.60%
32
33
$1,664$1,783
$1,912
$2,233
$2,465
$2,774
2009 2010 2011 2012 2013 2014
Growth in Trust Assets
Total Trust Assets – Book Value (in millions)
34
$9,083
$10,808
$12,671
$14,464
$16,317
$18,766
2009 2010 2011 2012 2013 2014
Total Trust Fees
Growth in FFTAM Fees (in thousands)
Growth in FFTAM Net Income
$2,631
$3,254
$4,176
$5,183
$6,142
$7,109
2009 2010 2011 2012 2013 2014
Total Trust Net Income
(in thousands)
35
$53.8$59.7
$68.4$74.2
$78.9
$89.6
2009 2010 2011 2012 2013 2014
28th Consecutive Year of Increased Earnings
FFIN Earnings (in millions)
36
37
$0.86$0.95
$1.09
$1.18$1.24
$1.40
2009 2010 2011 2012 2013 2014
Strong Shareholder Earnings
Basic Earnings Per Share
*Per share amounts reflect the 2 for 1 stock split that was effective June 2, 2014.
1.75% 1.78% 1.75%1.64% 1.65%
0.24%
0.80%
0.98% 1.04%0.94%*
2010 2011 2012 2013 2014
FFIN Outperforms Peers
Percentage Return on Average Assets
Pe
er
Gro
up
Fir
st
Fin
an
cia
l
38
*As of Sept. 30, 2014
13.74%14.44%
13.85% 13.75%14.00%
0.88%
7.27%
8.56%8.89%
8.15%*
2010 2011 2012 2013 2014
Strong Return on Capital
Percentage Return on Average Equity
Pe
er
Gro
up
Fir
st
Fin
an
cia
l
39
*As of Sept. 30, 2014
40
2010 2011 2012 2013 2014
Shareholders’Equity 441,688 508,537 556,963 587,647 681,537
As a Percent of Total
Assets11.70 12.34 12.37 11.25 11.65
Tangible
Capital369,164 436,415 484,990 490,163 584,178
Tier 1
Leverage Ratio10.28 10.33 10.60 9.84 9.89
Tier 1 Risk
Based Capital Ratio17.01 17.49 17.43 15.82 16.05
Risk Based
Capital Ratio18.26 18.74 18.68 16.97 17.16
Capital & Capital Ratios
(dollars in thousands)
3.00%
3.25%
3.50%
3.75%
4.00%
4.25%
4.50%
4.75%
5.00%
3rdQtr. '11
4thQtr. '11
1stQtr. '12
2ndQtr. '12
3rdQtr. '12
4thQtr. '12
1stQtr. '13
2ndQtr. '13
3rdQtr. '13
4thQtr. '13
1stQtr. '14
2ndQtr. '14
3rdQtr. '14
4thQtr. '14
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% 50.20% 49.24%
Peer Group 69.53% 67.33% 65.57% 65.77% 67.79% 66.67%*
Working Harder and Smarter
Efficiency Ratio (FFIN vs. Peers)
42
*As of Sept. 30, 2014
Stock cost in January 2014 $33,060
Dividend declared ($0.55 x 1,000 shares) $ 550
Decrease in stock price during 2014
($33.06 to$29.88 X 1,000 shares)$2210,720
2014 return on investment -7.96%
2013 return on investment 72.11%
2012 return on investment 19.65%
2011 return on investment 0.61%
2010 return on investment -2.99%
5 year compound average return 12.36%
Total Return on Investment
($2,630)
Assume you owned 1,000 shares of FFIN stock on January 1, 2014…
43
*Adjusted for 2 for 1 stock split effective June 2, 2014.
Dividends Per Share
$0.46 $0.48$0.50 $0.52
$0.55
2010 2011 2012 2013 2014
Annual Dividends Declared Per Share*
44
*Per share amounts reflect the 2 for 1 stock split that was effective 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 Dec. ’14Dec . ‘09Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11 Dec. ’12
45
Challenges
Regulatory reform from Washington
Stagnant national economy / Oil & gas price decline
Low interest rate environment
Maintaining net interest margin
46
Opportunities
Loan Growth
Mortgage Lending
Trust Services
Treasury Management
Mobile Banking
Lower Efficiency Ratio
Potential Acquisitions
47
www.ffin.com
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