first financial bankshares presentation 4th qtr 2011

4th Quarter 2011

Forward Looking Statement

The numbers, as of and for the year ended December 31, 2011, 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

$4.1 billion financial holding company headquartered in Abilene, Texas

Group of 11 separately chartered banks

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 2011

SNL Financial top publicly traded community bank and sixth overall – March 2011

Ranked #2 in Texas and #7 in the United States by J.D. Power and Associates 2011 Retail Banking Customer Satisfaction Study – April 2011

Bank Intelligence Proven Performers - #4 in the Nation in

$1 - $10 billion category – June 2011

5

6

What Makes Us Different

One Bank, Eleven Charters Concept

One Bank Consolidation of backroom operations (lower efficiency ratio) Agency agreements (customers may use any of our 52 locations)

Eleven Community Bank Charters Bank Presidents run their banks Local Boards – Movers and Shakers of the Community

Keep our banks locally focused Make sure we meet the needs of the community Help us make better loan decisions Help us market the bank

Up to $2.75 million of FDIC insurance available

7

Huntsville Acquisition

Acquired November 2010

Huntsville, Texas 37,000 Residents Sam Houston State University – 17,000 Students

Fastest Growing University in Texas Headquarters of the Texas Department of Criminal Justice – 5,000 employees Strategically located on Interstate 45 – 70 miles north of Houston

$181 million in Assets* $155 million in deposits $88 million in loans

Approximately 1.63x book; 10.8x last twelve months earnings (tax effected) Huntsville acquisition is very similar to our model around Dallas/Fort Worth

and provides diversification #2 Market Share in Walker County – 21%

*As of Dec. 31, 2011

8

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

Encore Bancshares Houston, Florida

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

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

Prosperity Houston, DFW, Austin

Southside East Texas

Texas Capital DFW, Austin, San Antonio and Houston

ViewPoint Financial Dallas

Zion DFW and Houston

98

10

Texas: Large and Growing

Five most populous states:* Growth (2000 – 2010)

California 37.3 million 10.0%

Texas 25.2 million 20.6%

New York 19.4 million 2.1%

Florida 18.8 million 17.6%

Illinois 12.8 million 3.3%

* U.S. Census Bureau

11

Target Markets – Population Growth

Population growth (2000-2010) in FFIN expansion markets:*

Texas 20.6%

Bridgeport & Wise County 21.2%

Fort Worth / Tarrant County 25.1%

Cleburne, Midlothian & Johnson County 19.0%

Weatherford, Willow Park, Aledo 32.1%

Granbury & Hood County 24.5%

Stephenville & Erath County 14.8%

* U.S. Census Bureau

12

Texas Benefits

CEO Magazine ranks Texas best state for

business – for seventh consecutive year

Texas created more jobs (230,800) in 2010 more

than any other state

Texas created more private sector jobs than any

other state during the past decade

13

Preferred Acquisition: Granbury and Glen Rose

12

14

Core Markets: West Central Texas

Markets served benefiting from well-established, long- time customers

BANKASSET

SIZE*LOCATIONS

DEPOSIT

MARKET SHARE**

MARKET

SHARE RANK**

First Financial Bank(Abilene, Clyde, Moran, Albany, Odessa)

$1,415 M 14 41% 1

First Financial Bank(Hereford)

$165 M 1 42% 1

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

$189 M 4 55% 1

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

$174 M 4 37% 1

First Financial Bank(San Angelo)

$420 M 2 20% 2

TOTALS $2,363M 25* Data as of 12-31-11** Data as of 06-30-11

15

Expansion MarketsBANK ASSET SIZE* LOCATIONS

DEPOSIT MARKET

SHARE**

MARKET SHARE

RANK**

First Financial Bank (Cleburne, Burleson, Alvarado, Midlothian, Crowley)

$309 M 6 21% 1

First Financial Bank (Southlake, Trophy Club, Keller,

Bridgeport, Decatur, Boyd)

$317 M 3

3

8%

16%

5

3

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

$362 M 6 21% 2

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

$403 M 7 24% 1

First Financial Bank(Mineral Wells)

$205 M 1 35% 1

First Financial Bank(Huntsville)

$181 M 1 21% 2

TOTALS $1,777M 27 * Data as of 12-31-11** Data as of 06-30-11

16

Recent De Novo Growth Abilene: New Southside Branch – Expected to Open 3rd Quarter 2012

Grapevine: Branch of Southlake – Expected to Open 1st Quarter 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

Years with Company Years in Industry

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

36 41

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

9 33

Gary L. Webb Executive Vice President Operations

9 23

Gary S. Gragg Executive Vice President Credit Administration

21 33

Marna Yerigan Executive Vice President Credit Administration

1 28

Michele Stevens Senior Vice President Advertising and Marketing

15 31

Courtney Jordan Senior Vice President Training & Education

3 18

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

25 29

Senior Management at First Financial

17

Experienced Bank CEOs & PresidentsYears with Company Years in Industry

Ron Butler, FFB Abilene 19 30

Mike Mauldin, FFB Hereford 9 34

Kirby Andrews, FFB Sweetwater 21 24

Tom O’Neil, FFB Eastland 13 32

Mike Boyd, FFB San Angelo 36 40

Matt Reynolds, FFB Cleburne 7 30

Ron Mullins, FFB Stephenville 6 33

Doyle Lee, FFB Weatherford 16 39

Jay Gibbs, FFB Weatherford 10 37

Mark Jones, FFB Southlake 11 34

Ken Williamson, FFB Mineral Wells 10 40

Robert Pate, FFB Huntsville 14 31

Gary Tucker, First Technology Services 21 37

18

19

2006 2007 2008 2009 2010 2011

$2,850$3,070

$3,212 $3,279

$3,776

$4,121Chart Title

Growth in Total Assets

Asset Performance

(in millions)

20

2006 2007 2008 2009 2010 2011

$685 $739 $797 $836 $959 $1,102

$1,699 $1,807 $1,786 $1,849$2,154

$2,233

Non Interest Bearing Interest Bearing

Deposit Growth

Growth in FFIN Total Deposits (in millions)

$2,384$2,546 $2,583

$2,685

$3,113$3,335

21

Deposit Products

Time22.6%

Deman

d33.0%Mon

ey Market37.1%

Sav-ings7.3%

2005 2006 2007 2008 2009 2010 2011

$85 $73 $84 $77 $73 $81 $66

$160 $165 $182 $191 $175 $191 $218 $37 $31 $32 $52 $0

$330 $344 $394 $391

$406 $429 $427

$677 $760 $836 $855

$860 $990

$1,076

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

$1,289

22

23

Overview of Loan Portfolio

Commercial 23.9%

Agricul-ture3.7%

Consumer12.2%

Real Es-tate

60.2%

Residential Development & Construction 5.2%

1-4 Family 39.2%

Commercial Devel-opment and Construc-

tion4.2%

Commercial R/E 30.6%

Other R/E 20.8%

Chart Title

24

Breakdown of R/E Loan Portfolio

25

2005 2006 2007 2008 2009 2010 2011

End of Period 54.5 57.6 60.0 60.6 56.4 54.3 53.6

Average

Balances57.6 56.6 59.8 61.1 59.5 56.0 54.6

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

35.8% 10.8% 15.3% 19.0% 8.4% 7.9% 2.8%

Variable and Fixed Rate Loans

Loan Portfolio Interest Rate Risk Analysis

Variable

RateFixed Rate

2006 2007 2008 2009 2010 2011

FirstFinancial 0.30% 0.31% 0.80% 1.46% 1.53% 1.64%

Peer Group 0.60% 0.98% 2.63% 5.41% 5.38% 4.90%*

Sound Lending Practices

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

27

*As of Sept. 30, 2011

28

2005 2006 2007 2008 2009 2010 2011

$14,719$16,201

$17,462

$21,529

$27,612

$31,106

$34,315

$1,320 $2,061 $2,331

$7,957

$11,419$8,962

$6,626

ALLL Provision

Allowance for Loan Losses and Provision for Loan Losses

(in thousands)

Summary of Bond Portfolio

Agencies 14.72% Corpo-rates

6.69%

Muni 37.36%

MBSs 13.48%

CMOs 26.87%

Trea-suries 0.88%

29

Municipal Allocation by StateState Percentage

Texas 58.20%

Michigan 5.20%

Wisconsin 4.37%

Illinois 2.91%

Massachusetts 2.22%

Florida 2.19%

Washington 2.18%

New Jersey 2.17%

Kentucky 1.80%

Louisiana 1.77%

California 1.72%

Utah 1.57%

Other 38 states 13.70%

30

31

2006 2007 2008 2009 2010 2011

$1,300$1,428

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

$1,912Chart Title

Growth in Trust Assets

Total Trust Assets – Book Value (in millions)

32

2006 2007 2008 2009 2010 2011

$7,665$8,746

$9,441 $9,083

$10,809

$12,671Chart Title

Total Trust Fees

Growth in FFTAM Fees (in thousands)

2006 2007 2008 2009 2010 2011

$46.0$49.5

$53.1 $53.8

$59.7

$68.4Chart Title

$1.3

25th Consecutive Year of Increased Earnings

FFIN Earnings (in millions)

33

34

2006 2007 2008 2009 2010 2011

$1.48$1.59

$1.71 $1.72

$1.91

$2.17Chart Title

Strong Shareholder Earnings

Basic Earnings Per Share

$0.04

2005 2006 2007 2008 2009 2010 2011

1.80%1.68% 1.72% 1.74% 1.72% 1.75% 1.78%

1.15% 1.10%

0.87%

-0.03%

-0.18%

0.25%

0.79%*

FFIN Outperforms Peers

Percentage Return on Average Assets

Pe

er

Gro

up

Fir

st

Fin

an

cia

l

35

*(thru Sept. 30th)

2005 2006 2007 2008 2009 2010 2011

16.15% 16.20% 15.87%15.27%

13.63% 13.74%14.44%

13.33%12.61%

9.45%

-1.83%

-2.57%

1.16%

7.37%*

Strong Return on Capital

Percentage Return on Average EquityP

ee

r G

rou

p

Fir

st

Fin

an

cia

l

36

*(thru Sept. 30th)

37

2007 2008 2009 2010 2011

Shareholders’Equity 335,495 368,782 415,702 441,688 508,537

As a Percent of Total

Assets10.93 11.48 12.68 11.70 12.34

Tangible

Capital270,288 304,779 352,550 369,164 436,415

Tier 1

Leverage Ratio9.23 9.68 10.69 10.28 10.33

Tier 1 Risk

Based Capital Ratio14.65 15.89 17.73 17.01 17.49

Risk Based

Capital Ratio15.62 17.04 19.10 18.26 18.74

Capital & Capital Ratios

(dollars in thousands)

3rd Qtr. '08

4th Qtr. '08

1st Qtr. '09

2nd Qtr. '09

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

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

38

2005 2006 2007 2008 2009 2010 2011

FirstFinancial 52.48% 53.57% 52.83% 50.76% 50.11% 49.49% 48.37%

Peer Group 60.12% 61.29% 63.12% 68.12% 69.53% 67.32% 65.16%*

Working Harder and Smarter

Efficiency Ratio (FFIN vs. Peers)

39

*As of Sept. 30, 2011

Stock cost in January 2011 $34,170

Dividend received ($0.95 x 1,000 shares) $ 950

Decrease in stock price during 2011($34.17 to $33.43 X 1,000 shares) $2210,720

2011 return on investment 0.61%

2010 return on investment -2.99%

2009 return on investment 0.69%

2008 return on investment 50.20%

2007 return on investment -7.05%

5 year compound average return 6.32%

Total Return on Investment

($740)

Assume you owned 1,000 shares of FFIN stock on January 1, 2011…

40

Dividends Per Share

2005 2006 2007 2008 2009 2010 2011

$0.73$0.79

$0.84$0.89 $0.91 $0.91

$0.95Chart Title

Annual Dividends Per Share

41

Strong Stock Performance

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

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

42

Challenges

Regulatory reform from Washington

Keep nonperforming assets to a minimum

Maintain net interest margin

Lower efficiency ratio

43

Opportunities

Loan Growth

Mortgage Lending

Trust Services

Treasury Management

Potential Acquisitions

44

www.ffin.com