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

NOVEMBER 5, 2017 SHAREHOLDER NEWSLETTER

Sincerely,

John R. Lancaster Chairman & CEO

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Dear Shareholder,

I’m very pleased to report that your

bank continues to have an excellent

year! September 30th marked the end

of our third quarter and we continue to

be on a record pace. Your bank posted net income in the

third quarter of $1,148k, compared to net income of $1,044k

in the second quarter and $902k year- over- year (third

quarter of 2016). This represents quarterly net income

growth of 10% compared to second quarter and 27%

compared to the same quarter of 2016.

Drilling a little deeper into the numbers reflects that this

increase in net income is a very nice combination of increases

in net interest income and non-interest income while

simultaneously holding operating expenses steady. The

increase in net interest income has been driven by loan

growth and maintaining discipline in our margins. The

increase in our non-interest income has been driven by

mortgage fees and general banking service charges.

For the record, net interest income increased 5% over the

second quarter and 11% year-over-year. Non-interest income

for the third quarter increased 13% over the second quarter

and 18% year-over-year. By contrast, operating expense

decreased less than 1% from the second quarter and

increased just over 1% year- over- year.

The 2017 year-to-date ROE (Return on Shareholder Equity)

and the Bank’s ROA (Return on Assets) is 11.14% and 0.96%,

respectively. Asset quality ratios continue to be strong with

NPA (Non-Performing Assets) to Assets and Texas Ratio at

0.66% and 6.23%, respectively.

We are fortunate to have a forward-thinking board of

directors, a dedicated and enthusiastic leadership team and

70+ team members who work diligently every day to help our

customers “Experience the Difference”. We’re confident

that our bank’s financial performance will fare very well when

stacked against other Tennessee based banks and we look

forward to sharing this information in future correspondence.

We still have a few investors who have never conducted any

business with First Freedom. Please join us and support your

investment. We believe you will understand why we have

been so successful.

The most recent trade of First Freedom stock was at $17.50 per share.

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FFB Recognizes Employees with Chairman’s Cup AwardFFB recognized four employees this past quarter for exceptional job performance and exceeding their individual goals for enhancing and broadening customer relationship. Their outstanding performance earned them the prestigious honor of Chairman’s Cup Member for the quarter. Pictured is JOHN LANCASTER, Chairman and CEO, with the Chairman Cup Team members SUSAN NICHOLS, Algood FSR Manager, KAYLA HOLBERT, Providence FSR Manager, DAWN KIDWELL, Mt. Juliet FSR Manager, and GREG SCOTT, Gainesboro FSR Manager and Chairman’s Cup MVP.

GREG SCOTT, FSR Manager at Gainesboro, received the MVP Award for achieving the highest overall performance score among all FSRs.

MATT PILLOW, Vice President and Providence Office Manager, and SARAH POSS, Providence Personal Banker and Marketing Specialist, attended Del Webb’s Trade Partner Appreciation Reception on Tuesday, July 18th.

First Freedom has participated in the Del Webb Trade Partners Program since 2013.

FFB Attends Trade Partner Appreciation Reception

First Freedom sponsored a table at the annual Fellowship of Christian Athletes (FCA) of Wilson County Banquet. FCA encourages coaches and athletes to serve their communities and make an impact in the world through Jesus Christ. This banquet raises funds to help the organization fulfill their mission.

John Hawkins, Assistant Vice President and Portfolio Manager, serves on the FCA board.

FFB Sponsors Wilson County Fellowship of Christian Athletes

Staff at the Lebanon Road office purchased shirts from Green Hill Baptist Church of Mt. Juliet to help support their food pantry. The church’s food pantry serves low income or struggling families in Mt. Juliet and the surrounding communities.

Pictured left to right is KELEIGH CARNES, Providence FSR Manager, DAWN KIDWELL, Mt. Juliet FSR Manager, APRIL JENNETTE, Mt. Juliet Office Manager, PASTOR DARYL CROUCH of Green Hill Baptist, LISA STEIN, and ASHLEY MONTGOMERY, Mt. Juliet Personal Banker.

FFB Supports Local Food Pantry

J.B. OWENS, Senior Vice President and Director of Commercial Banking, has been appointed to Tennessee Technological University’s Accounting Advisory Board. The board meets several times throughout the year to discuss and find solutions for the needs of the Accounting and Business Law Department of the College of Business. It is a twelve person team of CPA

professionals from all across Tennessee that strives to deliver high quality education to its undergraduate students. Owens will serve four years on the board.

Owens Appointed to TTU Accounting Advisory Board

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DEBBIE MARSH is a Mortgage Administration Officer at Main Office and has just celebrated her five year anniversary with First Freedom Bank. Debbie is a native of Chattanooga, but has been a Wilson County resident since 1989. She and her husband Rick are members of First Baptist Church in Mt. Juliet.

WHAT BROUGHT YOU TO FIRST FREEDOM BANK?

“Prior to working here, I was driving to Murfreesboro every day and working really long hours. I saw where FFB was constructing a beautiful new building on their site, so I sent Maliea my resume. When she saw that I had mortgage experience, she passed my resume to JB Owens, who called me to set up an interview.”

WHAT DO YOU ENJOY MOST ABOUT WORKING AT FIRST FREEDOM BANK?

“There are some really great people who work here. The ladies who work in the office suite with me are a joy to work with and I feel like they are family.”

WHAT IS SOMETHING INVALUABLE YOU HAVE LEARNED FROM WORKING AT FIRST FREEDOM BANK?

“I have learned to appreciate small bank atmosphere and being a part of the community. I had lost sight of that by working in other areas of town. Working for the mortgage department at a bank is very different than working for a mortgage company.”

YOU MENTIONED HAVING PREVIOUSLY WORKED AT A MORTGAGE COMPANY. WHAT IS DIFFERENT ABOUT WORKING AT FFB?

“The main difference is the customer relationships. I felt like my goal at the mortgage company was to constantly push paper from daylight until way after dark without actually having a personal connection with

the borrowers. At FFB, the borrower is a person, not a file. It makes my career so much more meaningful and rewarding to have that link to our customers.”

WHERE WERE YOU PREVIOUSLY EMPLOYED AND FOR HOW LONG WERE YOU EMPLOYED THERE?

“I worked at Guaranty Trust in Murfreesboro for over 2 years. Prior to that, I worked for a mortgage company in Lebanon for almost 5 years.”

DO YOU HAVE ANY DEGREES, SPECIAL CERTIFICATIONS, OR AWARDS?

“Through the years, I have completed several college courses. After several years of banking experience and working in a mortgage department, I received my certification as a Mortgage Loan Specialist. Obtaining that certification opened the door for me to be recognized and compensated for many years of mortgage experience.”

DO YOU HAVE ANY HOBBIES?

“I love to read and my husband and I dance occasionally. Not “dancing-with-the-stars,” but know enough waltz, two-step, swing dancing to at least participate whenever there is an opportunity.”

WHAT IS ONE FACT ABOUT YOU THAT YOU THINK WOULD SURPRISE PEOPLE?

“I LOVE chocolate! (just ask my suite-mates who work with me every day!)”

FFB Employee Spotlight: Debbie Marsh

On July 6th, several employees of First Freedom Bank attended Wilson County Court Appointed Special Advocates (CASA)’s Bi-Annual Reverse Raffle. Held at the Wilson County Expo Center, the raffle event sold 300 tickets and gave away $10,000. This is CASA’s biggest fundraiser and its proceeds go to training, supporting, and recognizing its volunteers.

In attendance, from left to right, was KENNY BEAVERS, Senior Vice President and Director of Retail Banking, SHELIA FERRELL, First Vice President and Managerial Lender, and JENNY

ETHERIDGE, Main Office Financial Services Representative. Ferrell is the current chairman for Wilson County CASA.

CASA provides trained volunteers who advocate in court for the stability and healthy development of abused and neglected children. Cases are referred to the CASA programs by the Juvenile Court Judge, the Department of Children’s Services, and/or the Foster Care Review Board. CASA

volunteers do not leave the case until the child can be returned home, is adopted, or other permanent arrangements are made for the child.

FFB Supports CASA Raffle Event

FFB Sponsors Wilson County Fellowship of Christian Athletes

“At FFB, the borrower is a person, not a file. It makes my career so much more meaningful…” — DEBBIE MARSH

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KAYLA HOLBERT has been promoted to Personal Banker at the Mt. Juliet Office. Kayla was previously the Financial Services R e p r e s e n t a t i v e Manager at the

Providence Office. She has been with First Freedom since February of 2014.

KELEIGH CARNES has been promoted to Financial Services R e p r e s e n t a t i v e Manager at the Providence Office. Keleigh was previously a Financial Services Representative at the Mt. Juliet Office. She has been with First Freedom since August of 2016.

K I M B E R L Y DENTON has joined First Freedom as a Financial Services Representative at the Mt. Juliet Office. Kimberly

was previously employed in the retail industry.

MAKAYLA RAMSEY has joined First Freedom as a Financial Services Representative at the Cookeville Office. MaKayla was previously employed with Middle Tennessee Federal Credit Union.

FFB Employee Hires and Promotions FIRST FREEDOM BANK1620 West Main StreetLebanon, Tennessee 37087

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