2016 FFIN Annual Meeting Presentation

2016 Annual Shareholder

Meeting

Years with Company Years in Industry

Scott Dueser Chairman of the Board, President & Chief Executive Officer

40 45

Ron Butler Executive Vice President Chief Administrative Officer

23 34

Troy Fore President First Financial Mortgage

- 35

Gary S. Gragg Executive Vice President Lending

26 38

J. Bruce Hildebrand, CPA Executive Vice President Chief Financial Officer

13 37

Executive Management at First Financial

2


Luke Longhofer Executive Vice President & Loan Review Officer Lending

6 13

Stan Limerick Executive Vice President Chief Information Officer

1 35

Randy Roewe Executive Vice President Chief Risk Officer

- 25

Kirk Thaxton, CTFA President First Financial Trust & Asset Management

29 33

Marna Yerigan Executive Vice President Lending

5 32

Executive Management at First Financial

3


Brandon Harris Senior Vice President Appraisal Services

2 15

Monica Houston Senior Vice President Training

20 20

Larry Kentz Senior Vice President & Compliance Officer Compliance

2 36

Michele Stevens Senior Vice President Advertising and Marketing

16 32

Senior Management at First Financial

4

5

Experienced Regional CEOs & Presidents


Marelyn Shedd, Abilene 25 33

Mike Mauldin, Hereford 13 38

Mike Boyd, San Angelo 40 44

Tom O’Neil, Cleburne 18 36

Trent Swearengin, Stephenville 16 18

Jay Gibbs, Weatherford 14 42

Mark Jones, Southlake 15 38

Ken Williamson, Mineral Wells 14 45

Stephen Lee, Southeast Region 3 27

Sam Baker, Conroe 1 39

Martin Noto, Fort Worth 1 32

6

Independent Public Auditors

6

Board of DirectorsYears as Board

MemberCommittee

Appointment

April Anthony Chief Executive Officer Encompass Home Health and Hospice & Homecare Homebase

1 Audit

Steven L. Beal Director and Former President and COO of Concho Resources Inc.

6Executive

Compensation

Nominating / Corporate Governance

Tucker S. Bridwell President, Mansefeldt Investment Corporation 9

Lead Director / Executive


David Copeland President, SIPCO, Inc. and Shelton Family Foundation

18Executive / Audit


F. Scott Dueser Chairman of the Board, President and CEO 25 Executive

Murray Edwards Principal, The Edwards Group 10

Executive / Audit


8

Board of Directors

Years as Board Member

Committee Appointment

Ron Giddiens G&G Investments

7 Audit

Tim LancasterPresident and CEO Hedrick Health System 3 Audit

Kade L. Matthews Ranching and Investments 18 Compensation

Ross H. Smith, Jr. Chairman and President Akrotex, Inc. 2 Compensation

Johnny E. Trotter President and CEO Livestock Investors, Ltd. 13

Executive

Compensation

Nominating/Corporate Governance

9

Forward Looking Statement

The numbers, as of and for the three months ended March 31, 2016, 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.

2015 Financial Review

Earnings

2010 2011 2012 2013 2014 2015

$59.7$68.4

$74.2$78.9

$89.6

$100.4Chart Title

29th Consecutive Year of Increased Earnings

FFIN Earnings (in millions)

15

16

2010 2011 2012 2013 2014 2015

$0.95$1.09 $1.18

$1.24

$1.40$1.55

Chart Title

Strong Shareholder Earnings

Basic Earnings Per Share

*Per share amounts reflect the 2 for 1 stock split that was effective June 2, 2014.

2010 2011 2012 2013 2014 2015

FirstFinancial 49.49% 48.37% 48.14% 50.20% 49.24% 47.61%

Peer Group 67.33% 65.57% 65.77% 67.80% 66.84% 63.87%

Working Harder and Smarter

Efficiency Ratio (FFIN vs. Peers)

17

4th Qtr. '12

1st Qtr. '13

2nd Qtr. '13

3rd Qtr. '13

4th Qtr. '13

1st Qtr. '14

2nd Qtr. '14

3rd Qtr. '14

4th Qtr. '14

1st Qtr. '15

2nd Qtr. '15

3rd Qtr. '15

4th Qtr. '15

1st Qtr. '16

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

18

2011 2012 2013 2014 2015

1.78% 1.75%1.64% 1.65% 1.61%

0.80%0.98%

1.04%0.95% 0.97%

FFIN Outperforms Peers

Percentage Return on Average Assets

Peer

Gro

up

Firs

t Fin

anci

al

19

2011 2012 2013 2014 2015

14.44%13.85% 13.75% 14.00% 13.60%

7.27%8.56% 8.89% 8.34% 8.68%

Strong Return on Capital Percentage Return on Average Equity

Peer

Gro

up

Firs

t Fin

anci

al

20

12-31-15 03-31-16To meet Requirements of BASEL III for 2016

Tier 1

Leverage Ratio9.96 10.23 > 4.000

Common Equity

Tier 1 Capital Ratio15.90 16.46 > 5.125

Tier 1

Capital Ratio15.90 16.46 > 6.000

Total

Capital Ratio16.97 17.60 > 8.000

Capital Ratios

20

22

2010 2011 2012 2013 2014 2015

$3,776$4,121

$4,502

$5,522

$5,848

$6,665Chart Title

Growth in Total Assets

Asset Performance

(in millions)

2010 2011 2012 2013 2014 2015$81 $66 $68 $76 $106 $102

$191 $218 $273 $334 $361 $386 $429 $427

$510 $590 $640 $685

$990 $1,076 $1,238

$1,689 $1,831

$2,178

Real Estate

Commercial

Consumer

Agricultural

Loan PerformanceGrowth in FFIN Total Loans (in millions)

$1,691 $1,787

$2,089

$3,351

23

$2,689$2,938

2010 2011 2012 2013 2014 2015

FirstFinancial 1.53% 1.64% 1.22% 1.16% 0.74% 0.89%

Peer Group 5.37% 4.59% 3.67% 2.71% 1.92% 1.29%

Sound Lending Practices

Nonperforming assets as a percentage of loans + foreclosed assets (FFIN vs. Peers)

24

25

2010 2011 2012 2013 2014 2015

$959 $1,102 $1,312 $1,362 $1,570 1,746

$2,154 $2,233$2,321

$2,773$3,180

$3,444

Non Interest Bearing Interest Bearing

Deposit Growth

Growth in FFIN Total Deposits (in millions)

$5,190

$3,113$3,335

$3,633$4,135

$4,750

1st Quarter 2016 Summary

2011 2012 2013 2014 2015 2016

$16.3$17.8 $18.6

$22.3$24.0

$25.7

1st Quarter Earnings

(in millions)FFIN Earnings

26

2011 2012 2013 2014 2015 2016

$0.26$0.28

$0.30

$0.35$0.37

$0.39

Shareholder Earnings – 1st Quarter

Basic Earnings Per Share

27

2010 2011 2012 2013 2014 2015

$2,297 $2,431

$2,852

$3,361

$3,759 $3,870

$1,783 $1,912$2,233

$2,465 $2,774

$3,060

Growth in Trust AssetsTotal Trust Assets

30

Mar

ket V

alue

Boo

k Va

lue

2010 2011 2012 2013 2014 2015

$1,159

$1,835

$2,167

$2,648

$3,150

$2,000

Chart Title

Growth in Mineral Management

Revenue from Mineral Management

(in thousands)

30

32

2010 2011 2012 2013 2014 2015

$10,808$12,671

$14,464$16,317

$18,766 $19,251Chart Title

Total Trust Fees

Growth in FFTAM Fees (in thousands)

33

2010 2011 2012 2013 2014 2015

$3,254

$4,176

$5,183

$6,142

$7,109 $7,449

Chart Title

Total Trust Net Income

Growth in FFTAM Net Income (in thousands)

Managed Equity Styles

Equity Income

Core Domestic

Core Diversified

Core World

Strategic Growth

33

First Financial Trust & Asset Management Locations

36

David Copeland President, Shelton Family Foundation

F. Scott Dueser President, First Financial Bankshares, Inc.

John L. BeckhamBeckham Rector & Eargle, LLP

Jay LawrencePresident, MAL Enterprises, Inc.

David F. Lupton President, Angelo Glass & Mirror Company, Inc.

Sarah Campbell Portfolio Manager

Walter Riedel President & CEO, Nelda C. and H.J. Lutcher Stark Foundation

Bill Parham Boucher Morgan & Young CPAs

Dr. Michael Owen Physician

Kirk W. Thaxton Chairman of the Board, President & CEO, First Financial Trust & Asset Management

Board of Directors – First Financial Trust & Asset Management

36

39

42

Recognitions – Elder Exploitative Initiative

ABA Foundation Community Commitment Award – November 2015

Texas Bankers Association 2016 Leaders in Financial Education Award – May 2016

2016 Leaders in Financial Education Award – July 2015 White House Conference on Aging

AARP Roundtable Discussion – November 2015

Texas Senate Committee on Business and Commerce – Jan. 2016

House Investments and Financial Services Committee – March 2016

43

2010 2011 2012 2013 2014 2015

$59.7$68.4

$74.2$78.9

$89.6

$100.4Chart Title

29th Consecutive Year of Increased Earnings

FFIN Earnings (in millions)

44

45

First Bank, N.A. - Conroe Acquisition Consummated July 31, 2015 Montgomery, Walker, & Harris Counties (On I-45 North of Houston)

Exxon Mobil Headquarters in the Woodlands Montgomery County – Approximately 500,000 residents, 55% growth from 2000 to

2010, 24th fastest growing county in the United States #4 Market Share in Conroe – 10.6%

8 Branches in Conroe, Magnolia, Tomball, Cut and Shoot, Montgomery, and Huntsville; additional site on Grand Parkway in Spring, Texas to expand

$393.0 million in Assets* $330.9 million in deposits $270.6 million in loans

1.06% Return on Assets in 2014 $61.0 million purchase price of our stock which represents 16x last twelve

months earnings Conroe acquisition is consistent with our acquisition model of high growth areas,

strong management and excellent earnings opportunity Provides diversification and fits well into our footprint Management and Board share same values to outstanding customer service

*As of Dec. 31, 2015

46

4Trust Mortgage Acquisition Consummated – May 31, 2015

Originated $175 million in mortgage loans in 2014 – Compared to $225 million that First Financial Bank originated in 2014

15 year old Company with offices in Fort Worth, Dallas and North Richland Hills

$1.9 million purchase price

Troy Fore is now President of Mortgage Division of First Financial Bank; other owners joining First Financial as EVP’s – Tammie Harding, Kami Graves, and Ryan Craig

Considered one of the top mortgage companies in Fort Worth

Are now offering expanded mortgage products and services to customers

46

Fort Worth – Forest Park Blvd. and Rosedale

48

Fort Worth – Forest Park Blvd. and Rosedale

49

Fort Worth Advisory Board of Directors

Murray Edwards, Chairman – Principal, The Edwards Group Larry Anfin – K&L Enterprises, Inc. Smith A. Brownlie III – Brownlie & Braden Ron Butler II – Chief Administrative Officer, First Financial Bankshares, Inc. Mary Lee Cruz – E Source Stephen Kimmel – CFO, Cooks Children's’ Health System Matt Morris – President, Gus Bates Insurance Martin Noto – President, First Financial Bank, Fort Worth Region Paul Poston – President, Wellington Insurance Group George Robertson – President/CEO E Mist

49

Cisco – 2006 Conrad Hilton Blvd.

5150

Cisco – 2006 Conrad Hilton Blvd.

5251

Odessa – 3555 Billy Hext Rd.

5352

Odessa – 3555 Billy Hext Rd.

5453

Weatherford Main – Previous Location

55

Weatherford – Remodeled College Park

5655

San Angelo Main – Previous Downtown Location

5756

San Angelo – New Downtown Location

5857

Orange Main – Current Downtown Location

595658

Management Enhancements

60

January 2015 – Stan Limerick, Executive Vice President and Chief

Information Officer

May 2015 – Randy Roewe, Executive Vice President and Chief Risk Officer

June 2015 – Troy Fore, President of First Financial Bank Mortgage Division

July 2015 – Martin Noto, President of Fort Worth Region

August 2015 – Luke Longhofer, Executive Vice President of Lending

February 2016 – Trent Swearengin, President – Stephenville Region

February 2016 – David Bailey, President – Eastland Region

March 2016 – Barry Wellins, Executive Vice President of Retail Services

Stock cost in January 2015 $29,880

Dividend declared ($0.62 x 1,000 shares) $ 620

Increase in stock price during 2015($29.88 to $30.17 X 1,000 shares) $290

2015 return on investment 3.05%

2014 return on investment -7.96%




5 year compound average return 12.36%

Total Return on Investment

13.95%

Assume you owned 1,000 shares of FFIN stock on January 1, 2015…

61*Adjusted for 2 for 1 stock split effective June 2, 2014.

Strong Stock Performance

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

FFIN S&P 500 NASDAQ Dow JonesJan . ‘07 Mar. ’16Dec . ‘09Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11 Dec. ’12 Dec. ’13 Dec. ’14 Dec. ’15

62

Dividends Per Share

2011 2012 2013 2014 2015

$0.48$0.50 $0.52 $0.55

$0.62Chart Title

Annual Dividends Declared Per Share*

63*Per share amounts reflect the 2 for 1 stock split that was effective June 2, 2014.

Increased Cash Dividend

Increase cash Dividend by $0.02 to $0.18 per quarter – 12.5% increase

2016 Dividend will be $0.70

Annualized Dividend will be $0.72

Shareholders of record as of June 16, 2016

Dividend payable July 1, 2016

61