L E B A N O N | 615.444 . 1280

P R O V I D E N C E | 615.758 . 1280

M T. J U L I E T | 615.754 . 1280

A L G O O D | 931 .537 .2265

C O O K E V I L L E | 93 1 .372 .9212

G A I N E S B O R O | 931 .268 .2 16 1

F I R S T F R E E D O M B A N K .C O M

Dear Shareholder,

The first quarter of 2018 was a great

quarter for First Freedom Bank.

Compared to the first quarter of 2017,

pre-tax earnings were up 8% while

pre-tax and pre-reserve earnings were up 22%. Net earnings

were up 25%. Our loan portfolio performed very well,

increasing 13% to more than $378 million. We contributed

an additional $193k to our reserves as a result of this

impressive loan growth. Our reserves now stand at 1.23% of

outstanding loans.

As we look to the balance of the year, we anticipate continued

demand for loans. The rising interest rate environment will

continue to push all banks’ cost of funds higher, and First

Freedom is no exception. We have been fortunate to operate

the last few years with a net interest margin of approximately

4%. Due to the rising rate environment, it will be challenging

to maintain this level of margin.

We are, however, off to a great start and we stand committed

to adding value to both our shareholders and our customers.

We will continue to support our communities and further

penetrate the markets in which we currently operate. I am

often asked if First Freedom is interested in other markets.

The answer is “yes”, but that doesn’t necessarily mean we are

about to do anything at the moment. We will continue to look

at all options to enter other markets – both organically and

through acquisitions – and we will only do so when we feel it

is in the best interest of all our shareholders. We remain

focused on earnings and return on shareholder equity.

By now, you should have received notice that Freedom’s

board of directors approved a 2.50% stock dividend, payable

on May 31st to shareholders of record on May 18th. We were

pleased to be able to structure a dividend that was more tax

friendly than in previous years, and we’ve heard from several

shareholders who were appreciative of this change.

We thank you for your investment in First Freedom. We

continue to believe your investment has a great future.

MAY 10, 2018 SHAREHOLDER NEWSLETTER

Sincerely,

John R. Lancaster Chairman & CEO

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The most recent trade of First Freedom stock was at $17.75 per share.

First Freedom Bank staff attended the Mt. Juliet Annual Chamber Award Banquet on January 25th.

Attendees pictured left to right: MATT PILLOW, Vice President and Providence Office Manager, JOSH CLEMMONS, CPA, Vice President and Controller, DEBBIE MARSH, Mortgage Administration Officer, TUCKER WORLEY, Relationship Specialist, CHRISTEN RABE, Mortgage Origination Officer, KAYLA RING, Construction Specialist, NICOLE FRANK, Mortgage Origination Officer, and MALIEA OAKLEY, Senior Vice President and Director of Human Resources.

FFB Supports Mt. Juliet Chamber of Commerce

SHELIA FERRELL, First Vice President and Managerial Lender, worked on a Leadership Wilson team to develop a Public Service Announcement (PSA) for local students. The PSA specifically promotes the Crisis Text Line, a free 24/7 service that connects texters to trained and compassionate crisis counselors.

This PSA will launch at the beginning of the 2018-2019 school year on media monitors in every middle school and high school in Wilson County. The team is also working on introducing the PSA into local movie theaters and professional service providers in order to reach as many Wilson County students as possible. Their goal is to have the PSA on all local channels by the end of 2018.

Pictured from left to right is SHELIA FERRELL and her team members KRISTIN FLEMING, ELAINE NAWIESNIAK, MICHAEL LEACH and LUKE RANDOLPH.

FFB Promotes Crisis Text Line in SchoolsFFB at Work in WILSON COUNTY

First Freedom attended Del Webb’s annual Trade Partner’s Fair on March 8th. The Trade Partner’s Fair is an event coordinated by Del Webb to allow local businesses that are registered in their Trade Partner Program the opportunity to meet the residents.

Del Webb is a local community located at Lake Providence in Mount Juliet. First Freedom has participated in their Trade Partners Program since 2013.

Pictured from left to right is SARAH POSS, Bank Officer and Marketing Specialist, and MATT PILLOW, Vice President and Providence Office Manager. Also in attendance, but not pictured, was KAITLIN WATTENBARGER, Providence Personal Banker.

FFB Serves Del Webb Community

First Freedom recently donated pencils to Wilson County schools. These pencils will be given to students during their annual testing.

Pictured is Wilson County school teacher DEBBIE MCCHURCH receiving the pencils from KIM COWAN, Providence Financial Services Representative (FSR).

FFB Donates Pencils to Wilson County Schools

First Freedom Bank participated in the 2018 Lebanon/Wilson County Chamber Membership Drive on January 23rd. The membership drive added 326 new members to the Chamber and resulted in a 32% increase in chamber membership. Different companies furnished teams to work the membership drive and each

team competed against the other one to see who could raise the most members. In total, there were 15 teams in the competition. The First Freedom Bank team was headed by JB OWENS, Executive Vice President and Director of Commercial Banking, SHELIA FERRELL, First Vice President and Managerial Lender, and

PHILLIP VANCE, Assistant Vice President and Relationship Manager. The First Freedom team came in second place in the event as a whole and raised over $14,000 which equated to 17% of the total money raised during the event. First Freedom’s team came in second place and was the highest finishing bank in the competition.

FFB Leads in Wilson Chamber Membership Drive

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FFB at Work in PUTNAM COUNTY

First Freedom Bank officers attended the annual Cookeville-Putnam County Chamber awards banquet on February 13th.

Attendees pictured left to right: J.B. OWENS, Executive Vice President and Director of Commercial Banking, JOHN BRADSHAW, President, COO and CLO, SARAH POSS, Personal Banker and Marketing Officer, KENNY BEAVERS, Senior Vice President and Director of Retail Banking, LADELL MEDLEY, Vice President and Cookeville Office Manager, KELLY EMERY, Cookeville Assistant Office Manager, GAILE PAUL, Algood Assistant Office Manager, and DONNA ELROD, Vice President and Gainesboro Office Manager.

FFB Supports Cookeville Chamber of Commerce

LADELL MEDLEY, Vice President and Cookeville-Algood Office Manager, attended Sycamore Elementary School’s “Guys with Ties” event on March 28th.

Guys with Ties is a new event coordinated by the school in order to introduce the second-grade boys to local male community leaders.

The guests each spent a few minutes talking about leadership values and how those values fit in their lives, education, and careers. Speakers included representatives from the Putnam County government, Avery Trace Middle School, the Cookeville-Putnam County Chamber of Commerce, and Tennessee Technological University. After the

presentation, the speakers instructed the boys on the proper way to tie a tie.

First Freedom has been an adopter of Sycamore Elementary School since the acquisition of the Cookeville office.

Pictured is LADELL MEDLEY posing with several of the students.

FFB Attends Sycamore Elementary’s “Guys with Ties” Event

First Freedom sponsored a sign to support the LADY CAVALIERS SOFTBALL TEAM. The sign will be located at Duff Field on the campus of COOKEVILLE HIGH SCHOOL and will run through the 2018 season. First Freedom understands the importance of supporting local youth organizations and is happy to do so with a great team like the Lady Cavaliers.

FFB Sponsors Lady Cavaliers Softball

UPCOMING BANK HOLIDAYSThe bank will be closed on the following days:

MEMORIAL DAY Monday, May 28th

INDEPENDENCE DAYWednesday, July 4th

As a Reminder, We Offer 24-Hour Online Banking for Your Convenience

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FFB at Work in JACKSON COUNTY

First Freedom Bank strives to be a positive influence in the community and was honored to sponsor several events in Jackson County this past quarter.

The first sponsorship was for Gainesboro’s Junior Pro Basketball team for their 2018 season. Team members are all Jackson County residents and their games are held every Saturday at Gainesboro Elementary school.

Pictured is JOHN ROLAND, team coach, accepting the sponsorship check from GREG SCOTT, Gainesboro FSR manager.

First Freedom also sponsored the 72nd session of the American Legion Auxiliary (ALA) Volunteer Girls State, a program offered to Tennessee high school seniors. If selected to attend, the students participate in citizenship centered activities such as debates, competitions, and engaging government curriculums.

Pictured above is DALE SMITH, ALA Member, accepting the sponsorship

check from TEOLA RAGLAND, Gainesboro Personal Banker.

Jackson County High School (JCHS) is hosting its annual Project Graduation and First Freedom elected to be a a sponsor again this year. Project Graduation is an event coordinated by the school to offer a safe alternative to t o graduation night parties.

Pictured is SARA BETH DAVENPORT, Gainesboro FSR presenting the sponsorship check to COURTNEY DAVENPORT, JCHS Senior.

First Freedom also sponsored the Jackson County Chamber of Commerce’s Sportsman’s Swap-N-Sale Meet. This event is held on the Gainesboro square each year and promotes tourism, business, and commerce.

Pictured is ASHLEY TIPPIT, Gainesboro Personal Banker, presenting the sponsorship check to chamber members SAM PETTY (left) and FRANK HARDEGREE (right).

Giving Back to Our CommunitiesFIRST FREEDOM BANK1620 West Main StreetLebanon, Tennessee 37087