First financial Bankshares presentation 4th qtr 2012

4th Quarter 2012

Forward Looking Statement

The numbers, as of and for the year ended December 31, 2012, 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

$4.5 billion financial holding company headquartered in Abilene, Texas

Group of 11 separate regions

122-year history

Growth markets include 50 mile radius of

the larger cities of Texas

4

Recognitions

KBW Honor Roll – One of Forty banks named – March 2012

SNL Financial #4 Best Performing Community Bank ($500M - $5B) – March 2012

Nifty 50: Bank Director Magazine - #2 – Based on Return on Equity / Average Tangible Equity – January 2012

5

6

What Makes Us Different

One Bank, Eleven Regions Concept

One Bank Consolidation of backroom operations and compliance (lower

efficiency ratio)

Eleven 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

BBVA Compass Rio Grande, Gulf Coast, Houston, Dallas, El Paso, Lubbock

Comerica, Inc. DFW, Austin, Houston, California, Michigan, Florida, Mexico

Frost San Antonio, Austin, Corpus Christi, DFW, Rio Grande

International Bancshares Corp. Rio Grande, Houston, San Antonio, Oklahoma

Prosperity Houston, DFW, Austin, West Texas

Southside East Texas

Texas Capital DFW, Austin, San Antonio and Houston

ViewPoint Financial Dallas

Zion DFW and Houston

8

Orange Acquisition

Definitive Agreement Signed - February 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* $381.1 million in deposits $295.9 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 Dec. 31, 2012

Port Arthur Branch

98

109

11

Texas: Large and Growing

Five most populous states:* Growth (2000 – 2011)

California 37.7 million 11.3%

Texas 25.7 million 23.7%

New York 19.5 million 2.6%

Florida 19.1 million 19.2%

Illinois 12.9 million 3.6%

* U.S. Census Bureau

12

Target Markets – Population Growth

Population growth (2000-2011) in FFIN expansion markets:*

Texas 23.1%

Bridgeport & Wise County 22.6%

Fort Worth & Tarrant County 27.9%

Cleburne, Midlothian & Johnson County 20.5%

Weatherford, Willow Park, Aledo & Parker County 33.7%

Granbury & Hood County 25.7%

Stephenville & Erath County 15.9%

* U.S. Census Bureau

13

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)

$1,595 M 15 43% 1

First Financial Bank(Hereford)

$184 M 1 43% 1

First Financial Bank(Eastland, Ranger, Rising Star, Cisco)

$223M 4 58% 1

First Financial Bank(Sweetwater, Roby, Trent, Merkel)

$211 M 4 34% 1

First Financial Bank(San Angelo)

$468M 2 19% 2

TOTALS $2,681M 26* Data as of 12-31-12** Data as of 06-30-12

14

Expansion Markets REGION ASSET SIZE* LOCATIONS

DEPOSIT MARKET

SHARE**

MARKET SHARE

RANK**

First Financial Bank

(Cleburne, Burleson, Alvarado, Midlothian, Crowley,

Waxahachie)

$336 M 7 22% 1

First Financial Bank

(Southlake, Trophy Club, Keller, Grapevine

Bridgeport, Decatur, Boyd)

$348 M 4

3

7%

16%

5

3

First Financial Bank

(Stephenville, Granbury, Glen Rose, Acton)

$378 M 6 22% 2

First Financial Bank

(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)

$422 M 7 24% 1

First Financial Bank

(Mineral Wells)

$213 M 1 34% 1

First Financial Bank

(Huntsville)

$182 M 1 20% 2

TOTALS $1,879M 29 * Data as of 12-31-12** Data as of 06-30-12

Recent De Novo Growth San Angelo: HEB Branch – Expected to Open 1st Qtr. 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

Crowley: Branch of Cleburne – October 2010

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

15

Years with Company Years in Industry

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

37 42

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

10 34

Ron Butler Executive Vice President Chief Administrative Officer

20 31

Gary L. Webb Executive Vice President Operations

10 24

Gary S. Gragg Executive Vice President Credit Administration

22 34

Marna Yerigan Executive Vice President Credit Administration

2 29

Michele Stevens Senior Vice President Advertising and Marketing

16 32

Courtney Jordan Senior Vice President Training & Education

4 19

Kirk Thaxton, CTFA President, First Financial Trust & Asset Management

26 30

Senior Management at First Financial

16

Experienced Regional CEOs & Presidents

Years with Company Years in Industry

Marelyn Shedd, FFB Abilene 22 29

Mike Mauldin, FFB Hereford 10 35

Kirby Andrews, FFB Sweetwater 22 25

Trent Swearengin, FFB Eastland 13 15

Mike Boyd, FFB San Angelo 37 41

Tom O’Neil, FFB Cleburne 14 33

Matt Reynolds, FFB Cleburne 8 31

Ron Mullins, FFB Stephenville 7 34

Jay Gibbs, FFB Weatherford 11 38

Mark Jones, FFB Southlake 12 35

Ken Williamson, FFB Mineral Wells 11 41

Robert Pate, FFB Huntsville 15 32

Gary Tucker, First Technology Services 22 38

17

18

2007 2008 2009 2010 2011 2012

$3,070$3,212 $3,279

$3,776

$4,121

$4,500Chart Title

Growth in Total Assets

Asset Performance

(in millions)

19

2007 2008 2009 2010 2011 2012

$739 $797 $836 $959 $1,102$1,312

$1,807 $1,786 $1,849$2,154

$2,233$2,321

Non Interest Bearing Interest Bearing

Deposit Growth

Growth in FFIN Total Deposits (in millions)

$3,633

$2,546 $2,583 $2,685

$3,113$3,335

20

Deposit Products

Time17.5%

Deman

d36.1%

Money

Market36.9%

Sav-ings9.5%

Account Growth

Net Growth in 2011 – 4,036 Accounts

Net Growth in 2012 – 1,425 Accounts

December 31, 2010 December 31, 2011 December 31, 2012

Total Number of Accounts 200,027 204,063 205,488

21

2006 2007 2008 2009 2010 2011 2012$73 $84 $77 $73 $81 $66 $68

$165 $182 $191 $175 $191 $218 $273 $31 $32 $52

$344 $394 $391 $406 $429 $427

$510

$760 $836 $855 $860

$990 $1,076

$1,238

Real Estate

Commercial

Student

Consumer

Agricultural

Loan Performance

Growth in FFIN Total Loans (in millions)

$1,373

$1,566 $1,514

$1,690$1,787

$1,528

$2,089

22

23

Overview of Loan Portfolio

Commercial 24.3%

Agricul-ture3.3%

Consumer13.1%

Real Es-tate

59.3%

Residential Development & Construction 5.4%

1-4 Family 43.4%

Commercial Devel-opment and Construc-

tion4.1%

Commercial R/E 28.5%

Other R/E 18.6%

Chart Title

24

Breakdown of R/E Loan Portfolio

25

2006 2007 2008 2009 2010 2011 2012

End of Period 57.6 60.0 60.6 56.4 54.3 53.6 57.5

Average

Balances56.6 59.8 61.1 59.5 56.0 54.6 56.4

Loan to Deposit Ratio

26

Less than

1 year

1 to 3

years

3 to 5

years

5 to 10

years

10 to 15

years

Over 15

years

35.2% 9.3% 12.3% 18.5% 10.3% 9.2% 5.2%

Variable and Fixed Rate Loans

Loan Portfolio Interest Rate Risk Analysis

Variable

RateFixed Rate

2007 2008 2009 2010 2011 2012

FirstFinancial 0.31% 0.80% 1.46% 1.53% 1.64% 1.22%

Peer Group 0.98% 2.63% 5.41% 5.37% 4.64% 3.96%**

Sound Lending Practices

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

27

**As of Sept. 30, 2012

28

2006 2007 2008 2009 2010 2011 2012

$16,201 $17,462

$21,529

$27,612

$31,106

$34,315 $34,838

$2,061 $2,331

$7,957

$11,419$8,962

$6,626

$3,484

ALLL Provision

Allowance for Loan Losses and Provision for Loan Losses

(in thousands)

Summary of Bond Portfolio

Agencies 12.76%Corpo-rates

6.26%

Muni 45.93%MBSs

13.00%

CMOs 21.69%

Trea-suries 0.36%

29

Municipal Allocation by State State Percentage

Texas 64.48%

Michigan 4.01%

Wisconsin 3.31%

Illinois 2.44%

New Jersey 1.92%

Massachusetts 1.88%

Washington 1.87%

Florida 1.82%

Utah 1.42%

Louisiana 1.38%

Kentucky 1.13%

Ohio 1.09%

Other 38 states 13.25%

30

31

2007 2008 2009 2010 2011 2012

$1,428

$1,631 $1,664$1,784

$1,912

$2,233Chart Title

Growth in Trust Assets

Total Trust Assets – Book Value (in millions)

32

2007 2008 2009 2010 2011 2012

$8,746$9,441 $9,083

$10,809

$12,671

$14,464

Chart Title

Total Trust Fees

Growth in FFTAM Fees (in thousands)

33

2007 2008 2009 2010 2011 2012

$2,549$2,810 $2,631

$3,254

$4,176

$5,183Chart Title

Trust Company Net Income

Growth in FFTAM Net Income (in thousands)

2007 2008 2009 2010 2011 2012

$49.5$53.1 $53.8

$59.7

$68.4

$74.2

26th Consecutive Year of Increased Earnings

FFIN Earnings (in millions)

34

35

2007 2008 2009 2010 2011 2012

$1.59$1.71 $1.72

$1.91

$2.17

$2.36

Strong Shareholder Earnings

Basic Earnings Per Share

2006 2007 2008 2009 2010 2011 2012

1.68% 1.72% 1.74% 1.72% 1.75% 1.78% 1.75%

1.10%

0.87%

-0.03%

-0.18%

0.24%

0.79%

1.06%*

FFIN Outperforms Peers

Percentage Return on Average Assets

Pe

er

Gro

up

Fir

st

Fin

an

cia

l

36

*(As of Sept. 30th)

2006 2007 2008 2009 2010 2011 2012

16.20%15.87%

15.27%

13.63% 13.74% 14.44% 13.85%12.61%

9.45%

-1.83%-2.57%

0.88%

7.27%

9.17%*

Strong Return on Capital

Percentage Return on Average EquityP

ee

r G

rou

p

Fir

st

Fin

an

cia

l

37

*(As of Sept. 30th)

38

2008 2009 2010 2011 2012

Shareholders’Equity 368,782 415,702 441,688 508,537 556,963

As a Percent of Total

Assets11.48 12.68 11.70 12.34 12.37

Tangible

Capital304,779 352,550 369,164 436,415 484,990

Tier 1

Leverage Ratio9.68 10.69 10.28 10.33 10.60

Tier 1 Risk

Based Capital Ratio15.89 17.73 17.01 17.49 17.43

Risk Based

Capital Ratio17.04 19.10 18.26 18.74 18.68

Capital & Capital Ratios

(dollars in thousands)

3rd Qtr. '09

4th Qtr. '09

1st Qtr. '10

2nd Qtr. '10

3rd Qtr. '10

4th Qtr. '10

1st Qtr. '11

2nd Qtr. '11

3rd Qtr. '11

4th Qtr. '11

1st Qtr. '12

2nd Qtr. '12

3rd Qtr. '12

3rd Qtr. '12

4th Qtr. '12

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

39

2006 2007 2008 2009 2010 2011 2012

FirstFinancial 53.57% 52.83% 50.76% 50.11% 49.49% 48.37% 48.14%

Peer Group 61.29% 63.12% 68.12% 69.53% 67.33% 65.57% 65.44%**

Working Harder and Smarter

Efficiency Ratio (FFIN vs. Peers)

40

**As of Sept. 30, 2012

Stock cost in January 2012 $33,430

Dividend declared ($0.99 x 1,000 shares) $ 990

Increase in stock price during 2012($39.01 from $33.43 X 1,000 shares) $2210,720

2012 return on investment 19.65%

2011 return on investment 0.61%

2010 return on investment -2.99%

2009 return on investment 0.69%

2008 return on investment 50.20%

5 year compound average return 9.55%

Total Return on Investment

$5,580

Assume you owned 1,000 shares of FFIN stock on January 1, 2012…

41

Dividends Per Share

2006 2007 2008 2009 2010 2011 2012

$0.79$0.84

$0.89 $0.91 $0.91$0.95

$0.99Chart Title

Annual Dividends Declared Per Share

42

Strong Stock Performance

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

FFIN S&P 500 NASDAQ Dow JonesJan . ‘07 Sept. ’12Dec . ‘09Dec ‘07 Dec ‘08 Dec. ‘10 Dec. ’11

43

Challenges

Regulatory reform from Washington

Keep nonperforming assets to a minimum

Maintain net interest margin

Lower efficiency ratio

44

Opportunities

Loan Growth

Mortgage Lending

Trust Services

Treasury Management

Potential Acquisitions

45

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