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

MAY 8, 2017 SHAREHOLDER NEWSLETTER

Sincerely,

John R. Lancaster Chairman & CEO

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Dear Shareholder,

First quarter financial results were very

solid. Net income for Q1 2017 was

$879,546 versus $646,835 for Q1 2016

– an increase of 36%. Total assets for

Q1 2017 were $430 million versus $341 million for Q1 2016 –

an increase of 26%. This increase in assets is driven primarily

by the addition of our three Upper-Cumberland area

offices in May of 2016. The increase in Q1 2017 net income

is driven significantly by the absence of one-time costs

incurred in Q1 2016.

We are projecting the balance of 2017 will be very good for

FFB. Our local markets continue to be strong, which should

yield additional loan opportunities, and our deposits

continue to grow in the most favorable products. Our

balance sheet continues to be very strong and our asset

quality is very good.

Hopefully, you have voted your proxy for the upcoming

annual shareholder meeting on May 18th at Five Oaks. If not,

please send it in to have your vote counted. The agenda for

the meeting is short but we certainly enjoy seeing everyone

and providing the opportunity to ask questions about FFB.

We will be paying our fifth consecutive dividend on May

19th. This year’s dividend is 30 cents per common share and

represents a 20% increase over the 2016 dividend. May 18th

will be the last day you can select to have your dividend

reinvested in the company’s dividend reinvestment plan

(DRIP). This year’s reinvestment rate is $13.58, the company’s

book value as of the end of Q1 2017. For informational

purposes, the last street trade of our stock was $16.75. If you

are interested in the DRIP and have not previously signed up,

you may see a copy of the plan on our website under

“Shareholder Information”. Please note, due to SEC

regulations, this plan is only available to Tennessee residents.

Please continue to use FFB for all your banking needs and

refer your friends and associates when possible. We

appreciate your investment and hope to see you on May 18th.

The most recent trade of First Freedom stock was at $16.75 per share.

FFB0517-MAY-Newsletter.indd 2 5/4/17 9:57 AM

Pictured below left to right is KACEY NIEVES, Providence Financial Services Representative, and MATT PILLOW, Vice President and Providence Office Manager,

at Del Webb’s Trade Partners Fair on

January 11th. The Trade Partners 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 public and offer their services and

products.

Del Webb is a local community located at

Lake Providence in Mount Juliet. First

Freedom has participated in their Trade

Partners Program since 2013.

FFB Attends Trade Partners Fair

First Freedom participated in several school functions with Sycamore Elementary School over the past quarter. Several employees of the Upper Cumberland offices attended Sycamore’s Reading Day on February 28th. LADELL MEDLEY, Vice President and Cookeville/ Algood Office Manager, JOSH HALL, Algood Personal Banker, and BRYAN SWEET, Cookeville Financial Services Representative Manager, participated by reading a book to the Kindergarten students.

Medley also hosted Bank Day on March 10th, which included a tour of the Cookeville office for the Sycamore 4th graders that

Pictured is JOSH HALL, Algood Personal Banker,

reading to Sycamore students.

had passed their yearly reading requirements.

In preparation for the next school year, First Freedom donated bags of school supplies to the new incoming Sycamore Kindergarten students.

First Freedom Bank has adopted Sycamore

Elementary School since the acquisition of the Upper Cumberland offices.

Pictured left to right: DONNA

SLOAN, Sycamore

Kindergarten Teacher, new

incoming Kindergarten

students receiving school

supplies, and LADELL MEDLEY,

Vice President and Cookeville

and Algood Office Manager.

FFB Participates in Sycamore Elementary School Functions

First Freedom Bank Executives and Officers attended the Mt. Juliet Annual Chamber Awards Banquet on January 26th. This event is coordinated in order to recognize individuals and businesses who contribute positively to the community.

Attendees pictured left to right: CHRISTEN RABE, MALIEA OAKLEY, APRIL JENNETTE, MATT PILLOW, JOHN BRADSHAW, JOHN LANCASTER, KENNY BEAVERS, and J.B. OWENS

FFB Attends Mt. Juliet Chamber Award Banquet

On March 16, 2017, the Smith County Chamber of Commerce held their 43rd annual banquet where they selected First Freedom Bank’s SHELIA FERRELL as the Business Woman of the Year. This event was held at the Smith County Agricultural Center and was attended by more than one hundred guests.

The Smith County Chamber of Commerce is headquartered in Carthage, Tennessee.

Pictured is SHELIA FERRELL, First Freedom Bank’s First Vice President and Managerial Lender.

Shelia Ferrell Selected as Smith County Business Woman of the Year

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FFB0517-MAY-Newsletter.indd 3 5/4/17 9:57 AM

First Freedom Bank’s mortgage team attended the 2016 Eastern Middle Tennessee

Association of Realtors (EMTAR) Banquet at the Airport Marriott on February 25th.

There were 236 realtors recognized for their accomplishments at this year’s

banquet.

EMTAR is a chartered member of the National Association of Realtors that works

to protect property owner’s rights and stimulate professional development and

education.

Pictured left to right: SEAN RABE, First Freedom’s Mortgage Origination Officer CHRISTEN RABE, First Freedom’s Vice President and Providence Office Manager MATT PILLOW, First Freedom’s Mortgage Specialist NICOLE FRANK, and DEREK FRANK.

FFB Mortgage Team Attends EMTAR Banquet

FFB Participates in CASA Fundraiser On April 1st, First Freedom Bank’s Shelia Ferrell participated in Wilson County Court Appointed Special Advocates (CASA)’s Pancake Breakfast Fundraiser. 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.

Pictured left to right is LOGEN FERRELL, special visitor THE EASTER BUNNY, LUCAS FERRELL, and SHELIA FERRELL, First Vice President and Managerial Lender.

First Freedom Bank attended the Mt. Juliet Senior Center Gala on April 1st. This gala was organized as a fundraiser for the proposed new Mt. Juliet Senior Center building.

Pictured in attendance from left to right is MATT KIDWELL, DAWN KIDWELL, Mt. Juliet Financial Services Representative Manager, ASHLEY MONTGOMERY, Mt. Juliet Personal Banker, APRIL JENNETTE, Mt. Juliet Office Manager, and ROBERT JENNETTE.

FFB Attends Mt. Juliet Senior Center Gala

First Freedom Bank sponsored a table at the Lebanon Senior Citizens Valentine Banquet on Saturday, February 18th. The Valentine Banquet is the largest fundraiser of the year for the Senior Citizen Center.

Pictured from left to right: JOHN SCOTT, KATHY SCOTT, Lebanon Office Financial Services Representative Manager KAREN ELMORE, ALBERT CASON, and EVELYN CASON.

FFB Attends Lebanon Senior Citizens Banquet

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FFB0517-MAY-Newsletter.indd 4 5/4/17 9:57 AM

On April 7th, 2017, First Freedom Bank donated funds to Jackson County High School to purchase a new play clock for the football field.

Pictured left to right is DONNA ELROD, Vice President and Gainesboro Office Manager, SEAN LOFTIS, JCHS Head Football Coach, and ASHLEY TIPPIT, Gainesboro Assistant Manager.

FFB Donates Play Clock

On Friday, February 24th, First Freedom’s Mt. Juliet office hosted their annual Chili Cook Off. Employees of the office whipped up their best chili recipes to be judged by customers and co-workers. April Jennette, Mt. Juliet Office Manager, came in first place and Ashley Montgomery, Mt. Juliet Office Personal Banker, followed in second place.

Pictured is MELEAH BAGLEY, judging a bowl of chili at the Cook Off.

Mt. Juliet Office Hosts Chili Cook Off

FIRST FREEDOM BANK1620 West Main StreetLebanon, Tennessee 37087

FFB0517-MAY-Newsletter.indd 1 5/4/17 9:57 AM