First Financial Bankshares presentation 4th qtr 2013

4th Quarter 2013

Forward Looking Statement

The numbers, as of and for year ended December 31, 2013, 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

$5.2 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

Sandler O’Neil 2013 Bank & Thrift Small-Cap All Stars – September 2013

KBW Honor Roll – One of forty-seven banks named – April 2013

SNL Financial #11 Best Performing Community Bank ($500M - $5B) – March 2013

Nifty 50: Bank Director Magazine - #12 – Based on Return on Equity / Average Tangible Equity – January 2014

American Banker - #14 – Based on three year average Return on Equity – August 2013

ABA Banking Journal - #16 – Top Performing mid-sized banks ($1B - $10B) – May 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

$436.8 million in Assets* $373.5 million in deposits $325.6 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, 2013

98

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

CEO Magazine ranks Texas best state for

business – for seventh consecutive year

Texas created more jobs (239,146) in 2012 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)

$1,764M 15 44% 1

First Financial Bank(Hereford)

$164M 1 45% 1

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

$214M 4 60% 1

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

$177M 4 34% 1

First Financial Bank(San Angelo)

$483M 3 18% 2

TOTALS $2,802M 27* Data as of 12-31-13** 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)

$391M 6 20% 1

First Financial Bank

(Southlake, Trophy Club, Keller, Grapevine)

(Bridgeport, Decatur, Boyd)

$366M 4

3

5%

21%

5

1

First Financial Bank (Stephenville, Granbury, Glen Rose, Acton)

$390M 6 21% 2

First Financial Bank(Weatherford, Aledo, Willow Park, Brock, Ft. Worth)

$421M 7 24% 1

First Financial Bank(Mineral Wells)

$219M 1 33% 1

First Financial Bank(Huntsville)

$170M 1 19% 2

First Financial Bank(Orange, Mauriceville, Newton, Port Arthur, Vidor)

$437M 5 41% 1

TOTALS $2,394M 33 * Data as of 12-31-13

** Data as of 06-30-13

14

Recent De Novo Growth Beaumont – Under Construction (Opening in 2014)

Weatherford – I-20 Branch – June 2013

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

15

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

16

Years with Company Years in Industry

Michele Stevens Senior Vice President Advertising and Marketing

16 32

Courtney Jordan Senior Vice President Training

5 18

Bob Goodner Senior Vice President & Compliance Officer Compliance

12 35

Luke Longhofer Senior Vice President & Loan Review Officer Credit Administration

3 10

Brandon Harris Senior Vice President Appraisal Services

1 15

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

27 31

Senior Management at First Financial

17

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

Matt Reynolds, Cleburne 9 31

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, Orange 6 20

Gary Tucker, First Technology Services 23 39

18

19

2008 2009 2010 2011 2012 2013

$3,212 $3,279

$3,776

$4,121

$4,500

$5,222Chart Title

Growth in Total Assets

Asset Performance

(in millions)

20

2008 2009 2010 2011 2012 2013

$797 $836 $959 $1,102 $1,312 $1,362

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

$2,233$2,321

$2,773

Non Interest Bearing Interest Bearing

Deposit Growth

Growth in FFIN Total Deposits (in millions)

$4,135

$2,583 $2,685

$3,113$3,335

$3,633

21

Deposit Products

Time16.6% De

mand

33.0%

Money

Market40.0%

Sav-ings10.4%

Account Growth

Net Growth in 2011 – 4,036 Accounts

Net Growth in 2012 – 1,219 Accounts

Net Growth in 2013 – 3,308 Accounts*

December 31, 2010

December 31, 2011

December 31, 2012

December 31, 2013

Total Number of Accounts

200,027 204,063 205,282 208,590*

22

*(Excluding Orange Acquisition)

2007 2008 2009 2010 2011 2012 2013$84 $77 $73 $81 $66 $68 $76

$182 $191 $175 $191 $218 $273 $334 $32 $52 $0

$394 $391 $406 $429 $427 $510

$590

$836 $855 $860 $990 $1,076

$1,238

$1,689

Real Estate

Commercial

Student

Consumer

Agricultural

Loan Performance

Growth in FFIN Total Loans (in millions)

$1,566 $1,514

$1,690$1,787

$1,528

$2,689

23

$2,089

24

Overview of Loan Portfolio Commercial

22.0% Agricul-ture2.8%

Consumer12.4%

Real Es-tate

62.8%

Residential Development & Construction 6.3%

1-4 Family 46.2%

Commercial Development and Construc-tion

2.9%

Commercial R/E 29.9%

Other R/E 14.7%

Chart Title

25

Breakdown of R/E Loan Portfolio

26

2007 2008 2009 2010 2011 2012 2013

End of Period 60.0 60.6 56.4 54.3 53.6 57.5 65.0

Average

Balances59.8 61.1 59.5 56.0 54.6 56.4 64.3

Loan to Deposit Ratio

27

Less than

1 year

1 to 3

years

3 to 5

years

5 to 10

years

10 to 15

years

Over 15

years

32.9% 6.3% 5.3% 16.9% 18.8% 11.4% 8.4%

Variable and Fixed Rate Loans

Loan Portfolio Interest Rate Risk Analysis

Variable

RateFixed Rate

2008 2009 2010 2011 2012 2013

FirstFinancial 0.80% 1.46% 1.53% 1.64% 1.22% 1.16%

Peer Group 2.63% 5.41% 5.37% 4.59% 3.67% 2.80%*

Sound Lending Practices

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

28

*As of Sept 30, 2013

29

2007 2008 2009 2010 2011 2012 2013

$17,462

$21,529

$27,612

$31,106

$34,315 $34,839$33,900

$2,331

$7,957

$11,419$8,962

$6,626

$3,484 $3,753

ALLL Provision

Allowance for Loan Losses and Provision for Loan Losses

(in thousands)

Summary of Bond Portfolio

Agencies 6.80% Corporates 4.88%

Muni 48.33%

MBSs 16.95%

CMOs 23.04%

30

Municipal Allocation by State

State Percentage

Texas 73.37%

Michigan 2.80%

Wisconsin 2.30%

Washington 1.73%

Illinois 1.50%

Ohio 1.43%

New Jersey 1.33%

Louisiana 1.32%

Florida 1.20%

New York 1.09%

Utah 1.08%

Other 39 States 10.85%

31

32

2008 2009 2010 2011 2012 2013

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

$1,912

$2,232

$2,465Chart Title

Growth in Trust Assets

Total Trust Assets – Book Value (in millions)

33

2008 2009 2010 2011 2012 2013

$9,441 $9,083

$10,808

$12,617

$14,464

$16,317Chart Title

Total Trust Fees

Growth in FFTAM Fees (in thousands)

2008 2009 2010 2011 2012 2013

$53.1 $53.8$59.7

$68.4$74.2

$78.9Chart Title

27th Consecutive Year of Increased Earnings

FFIN Earnings (in millions)

34

35

2008 2009 2010 2011 2012 2013

$1.71 $1.72$1.91

$2.17$2.36

$2.48Chart Title

Strong Shareholder Earnings

Basic Earnings Per Share

2007 2008 2009 2010 2011 2012 2013

1.72% 1.74% 1.72% 1.75% 1.78% 1.75%1.64%

0.87%

-0.03%

-0.18%

0.24%

0.79%

0.98% 1.03%*

FFIN Outperforms Peers

Percentage Return on Average Assets

Pe

er

Gro

up

Fir

st

Fin

an

cia

l

36

*As of Sept. 30, 2013

2007 2008 2009 2010 2011 2012 2013

15.87%15.27%

13.63% 13.74%14.44%

13.85% 13.75%

9.45%

-1.83%-2.57%

0.88%

7.27%8.56% 9.01%*

Strong Return on Capital

Percentage Return on Average EquityP

ee

r G

rou

p

Fir

st

Fin

an

cia

l

37

*As of Sept. 30, 2013

38

2009 2010 2011 2012 2013

Shareholders’Equity 415,702 441,688 508,537 556,963 587,647

As a Percent of Total

Assets12.68 11.70 12.34 12.37 11.25

Tangible

Capital352,550 369,164 436,415 484,990 490,163

Tier 1

Leverage Ratio10.69 10.28 10.33 10.60 9.84

Tier 1 Risk

Based Capital Ratio17.73 17.01 17.49 17.43 15.82

Risk Based

Capital Ratio19.10 18.26 18.74 18.68 16.92

Capital & Capital Ratios

(dollars in thousands)

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

4th Qtr. '12

1st Qtr. '13

2nd Qtr. '13

3rd Qtr. '13

4th Qtr. '13

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

2007 2008 2009 2010 2011 2012 2013

FirstFinancial 52.83% 50.76% 50.11% 49.49% 48.37% 48.14% 50.19%

Peer Group 63.12% 68.12% 69.53% 67.33% 65.57% 65.77% 65.92%*

Working Harder and Smarter

Efficiency Ratio (FFIN vs. Peers)

40

*As of Sept. 30, 2013

Stock cost in January 2013 $39,010

Dividend declared ($1.03 x 1,000 shares) $ 1,030

Increase in stock price during 2013($66.11 from $39.01 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

$27,100

Assume you owned 1,000 shares of FFIN stock on January 1, 2013…

41

Dividends Per Share

2007 2008 2009 2010 2011 2012 2013

$0.84$0.89 $0.91 $0.91

$0.95$0.99

$1.03Chart Title

Annual Dividends Declared Per Share

42

Strong Stock Performance

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

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

43

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

44

Opportunities

Loan Growth

Mortgage Lending

Trust Services

Treasury Management

Mobile Banking

Lower Efficiency Ratio

Potential Acquisitions

45

www.ffin.com