First Financial Bankshares Annual Report 2005

FY2005 Annual Report · First Financial Bankshares

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A family of community banks

Annual Report 2005

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“This year’s annual report focuses on the people of
First Financial Bankshares. We recognize it is
our outstanding people – our directors, officers and
employees – who make our company successful.
I am honored to work with such a dedicated and
experienced team of professionals.”

Dear Fellow Shareholders,

Last year was First Financial Bankshares’ 19th consecutive year
of earnings growth. Assets and deposits also reached new highs,
as did the number of our locations. We attained these milestones
through acquisitions, the opening of de novo branches and
organic (internally generated) growth.

Net income advanced 12.4% to $44.0 million from $39.2 million
in 2004. Excluding the $3.9 million of pre-tax proceeds we
received from the sale of ownership rights in PULSE EFT
(a nationwide ATM/debit card network), net income grew 5.9%,
to $41.5 million. Basic earnings per share rose 12.1% to $2.13
from $1.90 in 2004. Excluding the PULSE gain, basic earnings
per share for 2005 were $2.00, an increase of 5.3%. Contributing
to the earnings gain was a 13.5% increase in net interest income,
which grew to $95.2 million from $83.9 million. The significant
growth in net interest income was primarily fueled by acquisitions.
We were especially pleased with our ability to maintain our net
interest margin at the same rate as in 2004 – 4.49% – given the
interest rate environment in 2005 was marked by a flattening
yield curve.

Noninterest income grew by 13.8%, to $44.2 million from
$38.8 million, primarily because of the PULSE proceeds and
an increase in trust, ATM and service charge fees. Noninterest
expense rose 14.4%, to $75.6 million from $66.1 million; the
increase was due primarily to additional salary and employee
benefits, facility expenses and conversion costs resulting from
our acquisitions, and the opening of five de novo bank branches.
The acquisitions and de novo branches also affected key
performance ratios. Return on average assets decreased to
1.80% from 1.82%; however, our ROA continued to compare
very favorably with our peer group average of 1.16%. Return
on average equity increased to 16.17% from 15.09% as we
better utilized our capital by acquiring additional banks. The
efficiency ratio (the share of revenues consumed by operating
expenses) increased to 52.48% from 51.78% but continued to
be much better than our peer group average of 60.19%.
We expect to lower our efficiency ratio as we bring our newly
acquired banks into the Company template and as newly
opened branches become profitable.

At year-end, our consolidated assets totaled $2.7 billion, an
increase of 18.1% from $2.3 billion at the close of 2004. Loans
were up 10.7%, to $1.3 billion from $1.2 billion. Total deposits
rose 18.7%, to $2.4 billion from $2.0 billion. The two banks we
acquired during 2005 accounted for $122.9 million of the $124.4
million in loan growth and for $245.9 million of the $372.0 million
in deposit growth. We did not experience the organic loan growth
we had expected and have increased our marketing and calling
efforts in that area.

Our asset quality and shareholders’ equity remained strong during
2005. Classified loans (those at some degree of risk) increased
to 3.83% of total loans from 3.51% a year earlier. However,
total nonperforming assets decreased to 0.33% of total loans and
foreclosed assets from 0.43% at the end of 2004. The 2005
percentage compares very favorably with our peer group average
of 0.58%. At December 31, 2005, the allowance for loan losses
amounted to 1.14% of total loans compared to 1.19% at the end
of 2004. The 2005 percentage would have been similar to 2004’s
if not for the new accounting rules on problem loans acquired in
acquisitions. Shareholders’ equity at year-end was $276.3 million
in 2005 compared to $265.5 million in 2004.

Based upon our earnings performance and strong capital position,
the Board of Directors in April 2005 increased cash dividends by
9.8% in the second quarter. The increase was accomplished
through a 33% stock dividend and a change in the quarterly
cash dividend to $0.28 per share. The market share price of
our common stock at year-end was $35.06, up 4.3% from $33.61
at the end of 2004. The combination of share price appreciation
and dividends paid produced a total return to shareholders
of 7.6% for 2005.

ACQUISITIONS, BRANCH EXPANSIONS
AND OTHER INITIATIVES

On February 1, 2005, First Financial Bankshares purchased
The Peoples State Bank in Clyde for $25.4 million. Peoples,
with assets of $126.7 million, provided locations in Moran,
Ranger and Rising Star as well as in Clyde. The Clyde and
Moran locations were merged with our Abilene bank, creating
First Financial Bank, Abilene, Clyde, Moran. The Ranger and

Rising Star locations were merged with our Eastland bank, creating
First Financial Bank, Eastland, Ranger, Rising Star. As you can
see from the illustration of our footprint on the inside cover, these
locations were good additions to our Abilene and Eastland markets.

On December 1, 2005, we also acquired The First National Bank
of Bridgeport, with assets of $146.4 million and banking offices in
Bridgeport, Boyd and Decatur. The transaction involved a cash
purchase price of $20.1 million, plus the assumption of $5.5 million
in debt and trust preferred securities. First Financial Bank,
Southlake was combined with First National Bank of Bridgeport
to form a $251.4 million bank serving Wise County and northern
Tarrant County. The new locations, in attractive, rapidly growing
markets, fit our acquisition profile and add to our growing footprint
of community banks within a 50-mile radius of the Dallas-Fort
Worth Metroplex. We are very pleased with the results we have
already realized from this merger and look forward to achieving
additional synergies in the near future.

We also expanded our footprint through de novo branch openings.
In this regard, 2005 was a banner year, with five new locations
added to our network. Weatherford National Bank held the grand
opening of the Willow Park location in January. Strategically
placed between Fort Worth and Weatherford on I-20, this new
location serves an excellent high-net-worth, high-income market.
In Abilene, First Financial Bank opened a nontraditional location
in the lobby of the Wesley Court Methodist Retirement
Community in March, and in August it opened a fourth grocery
store branch in Abilene’s newest Wal-Mart Supercenter. First
Financial Bank, Cleburne moved into the Midlothian market in
September with the grand opening of that location. Midlothian, a
community of 7,500 people located 20 miles south of Dallas-Fort
Worth, is expected to double in population in the next decade. In
November, First Financial Bank, Stephenville opened its second
location in Granbury to better serve the needs of the growing
Granbury community and to position the bank to obtain additional
market share. We are very pleased with the initial growth of each
of these locations and anticipate they will continue to meet or
exceed our expectations. With the branches added in 2005, we now
have a total of 44 locations.

In the spring of 2005, we launched “Customer Service First,”
our companywide customer service improvement initiative. While
we believe we have provided good service to our customers in the
past, this new initiative will take us to the next level of excellent
customer service. The initiative is built around the realization
that “everything speaks” and that we need to examine what we
do through the “lens of the customer.” The program and its
customer service standards are being embraced at every level
of our organization, and it is amazing to see how our people
are making renewed efforts to provide excellent service to our
customers. The program encourages and guides our associates to
create WOWs for our customers. A WOW occurs when we go
beyond the call of duty for a customer so that the customer thinks,
“Wow, what great service.” Since the initiation of this program, we
have produced hundreds of WOWs, and we have selected a few to
highlight in this annual report so that you can see what a great
job our people are doing.

In October of 2005, the Company elected Daniel A. Ortiz to the
newly created position of Vice President of Multicultural
Development. We want to be the bank for all neighborhoods, and
Daniel is responsible for developing additional financial products
and services, which will meet the specific banking needs of the
multicultural community. We are very pleased with the progress

Daniel and our Multicultural Committee (individuals from each of
our banks) have made and the goals they have established to help
us grow our market share in this area.

ON THE AGENDA

We will be focusing on a number of areas as part of our strategic
agenda for 2006. We will continue to integrate our new acquisitions
into our corporate template and strive to make our new branch
expansions profitable, which should lower our efficiency ratio and
increase our earnings. We also will leverage our strengths in the
areas of student loans, mortgage lending, treasury management and
trust services. These are areas in which we possess considerable
experience and have been successful, yet we believe great
opportunities exist to capture additional market share. Through
our marketing and calling efforts, we believe we can grow these
areas along with loans and increase our loan-to-deposit ratio.
As in the past, we will continue to look for additional acquisition
and expansion opportunities in high-growth areas, in keeping
with our Company’s strategic plan.

James Parker, Raymond McDaniel, Jr. and Dr. Jack Ramsey will
retire from the First Financial Bankshares Board in conjunction
with our Annual Shareholders Meeting in April 2006. Each of
these gentlemen has served our company with distinction in a
number of capacities for many years. We thank them for their fine
service. We have benefited greatly from their counsel and direction.

We are honored that Murray Edwards, principal of the Edwards
Group, has accepted nomination for election as a director of the
Company at our Annual Shareholders Meeting in April. He is
presently a director of First Financial Bank, Abilene. Murray
holds a bachelor of science degree in agricultural economics
from Texas A&M University, and a master’s degree in business
administration from Harvard Business School. A prominent
entrepreneur and agribusiness leader, Murray is presently
involved in the livestock and pet food manufacturing industry,
cotton seed and commodity trading, and special events management.

This year’s annual report focuses on the people of First Financial
Bankshares. We recognize it is our outstanding people — our
directors, officers and employees — who make our company
successful. I am honored to work with such a dedicated and
experienced team of professionals.

We value the continued interest that our shareholders have shown
in First Financial Bankshares. Many of you have owned our stock
in your families for several generations, while some of you we
welcome as new investors. No matter which, we are committed to
enhancing the value of your investment through consistent
growth in earnings, financial strength and excellent customer
service. Thank you for your investment in and support of
First Financial Bankshares.

F. Scott Dueser

President and Chief Executive Ofﬁcer,

First Financial Bankshares, Inc.

Source of peer group information is FFIEC Bank Holding Company
Performance Report

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Hereford (1)
212 E. Third

Bank Names and
Location Markers
First Financial Bank
Abilene, Clyde, Moran

First Financial Bank
Eastland, Ranger, Rising Star

First Financial Bank
Stephenville, Glen Rose, Granbury

First Financial Bank
Cleburne, Burleson, Alvarado,
Midlothian

First Financial Bank
Southlake, Trophy Club, Keller,
Bridgeport, Boyd, Decatur

First National Bank
Sweetwater, Roby, Trent

Hereford State Bank
Hereford

Weatherford National Bank
Weatherford, Aledo, Willow Park

City National Bank
Mineral Wells

San Angelo National Bank
San Angelo

I-20

Abilene (10)
400 Pine
701 Pine (Motorbank)
4400 Buffalo Gap Rd.
1010 N. Judge Ely Blvd.
2617 Antilley Rd. (Wesley Court)
S. 14th & Barrow (HEB Grocery)
S. 14th & Willis (River Oaks)
I-20 at Hwy 351 (Wal-Mart)
4350 Southwest Dr. (Wal-Mart)
N. 10th & Willis (United Grocery)

Roby (1)
123 N. Concho

Sweetwater (1)
201 Elm

Profile

First Financial Bankshares, Inc. is a financial holding company headquartered in Abilene, Texas,
with consolidated assets of $2.7 billion as of December 31, 2005. The corporation has ten separately
chartered affiliate banks, which provide services from 44 locations in the Central, West and High
Plains regions of Texas. The Company also operates a trust and asset management company, and
a technology services company. The common stock of First Financial Bankshares is beneficially
held by 5,300 shareholders and is listed on the NASDAQ Stock Market under the symbol FFIN.
The Company’s Web site is www.ffin.com.

Weatherford (3)
101 N. Main, with

Motorbank at 201 N. Main

Aledo (1)
505 FM 1187

Willow Park (1)
4100 E. I-20

Moran (1)
400 Ground

1214 N. Main
101 College Park

Mineral Wells (1)
1900 E. Hubbard

Bridgeport (1)
909 Stevens

Boyd (1)
609 Rock Island Ave.

Decatur (1)
1415 S. FM 51

Trophy Club (1)
95 Trophy Club Dr.

Keller (1)
891 E. Keller Pkwy

FORT
WORTH

DALLAS

Southlake (1)
3205 E. Highway 114

San Angelo (2)
301 W. Beauregard, with

Motorbank at Concho Ave. & S. Bryant

3471 Knickerbocker

Trent (1)
117 N. Main

Clyde (1)
718 Elm

Eastland (1)
201 E. Main

Glen Rose (1)
400 Big Bend Trail

Ranger (1)
106 Main

Rising Star (1)
206 W. College

Granbury (2)
2007 E. Hwy 377
1600 S. Morgan (Hwy 144)

Stephenville (3)
2201 W. South Loop
199 N. Columbia (Motorbank)
1875 Lingleville Road

I-20

Midlothian (1)
1490 E. Main

Alvarado (1)
201 E. Hwy 67

Burleson (1)
1900 S.W. Wilshire

Cleburne (2)
403 N. Main
200 N. Ridgeway

First Financial Bankshares, Inc.™
A family of community banksSM

Cover photo, from left: Jennifer Harper, Trent Swearengin, Oliva Velasco, Kathy Armstrong and Cody Wright

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Financial Highlights

Board of Directors

In thousands (except per share data)

2005

2004

Changes

For the Year

Net Income
Basic Earnings per Share
Dividends Declared
Dividends per Share

$44,023
2.13
22,694
1.10

$39,171
1.90
20,613
1.00

Averages for the Year

Assets
Securities
Loans
Deposits
Shareholders’ Equity

At Year-End

Assets
Securities
Loans
Deposits
Shareholders’ Equity
Book Value per Share
Trust Assets

Key Ratios

$2,449,845
958,879
1,209,094
2,100,937
272,298

$2,148,341
906,651
1,044,010
1,816,461
259,502

$2,733,827
1,046,121
1,288,604
2,366,277
276,276
13.34
1,150,027

$2,315,224
854,334
1,164,223
1,994,312
265,545
12.84
1,067,730

Return on Average Assets
Return on Average Equity
Equity/Assets at Year-End
Efficiency

1.80%
16.17
10.11
52.48

1.82%
15.09
11.47
51.78

12.4%
12.1%
10.1%
10.0%

14.0%
5.8%
15.8%
15.7%
4.9%

18.1%
22.4%
10.7%
18.7%
4.0%
3.9%
7.7%

_
_
_
_

First Technology Services, Inc.

From left:

Larry Williams, Senior Vice President

Gary Tucker, President & CEO

Michelle McDonald, Senior Vice President

Kay Berry, Senior Vice President

Dennis Steckly, Senior Vice President

Committee

Year Elected Appointment*

1971

1996

1, 3, 4

1998

1, 2, 4

Kenneth T. Murphy
Chairman of the Board

Joseph E. Canon, J.D.
Executive Director,
Dodge Jones Foundation

Mac A. Coalson
Real Estate and Ranching

David Copeland
President, SIPCO, Inc. and
Shelton Family Foundation

F. Scott Dueser
President and Chief Executive Officer

1991

Derrell E. Johnson
President, American Council of
Engineering Companies Life Health Trust

2000

Kade Matthews
Ranching and Investments

Raymond A. McDaniel, Jr.
Investments

Bynum Miers
Ranching

James M. Parker
President, Parker Properties, Inc.

Jack D. Ramsey, M.D.
Physician
Radiologist and former President,
Radiology Associates of Abilene

1998

1992

1, 2, 4

1992

1972

1997

1, 3, 4

Dian Graves Stai
Chair, Mansefeldt Investment Corporation
Director, Dian Graves Owen Foundation

1993

F. L. (Steve) Stephens
Retired Chairman and
CEO, Town & Country Food Stores, Inc.

1998

1, 3, 4

Johnny E. Trotter
President and CEO,
Livestock Investors, Ltd.

2003

For more information on First Financial Bankshares’
Board of Directors, please visit our Web site
at www.ffin.com.

*Committee Appointments
1. Executive Committee – F. Scott Dueser, Chairman
2. Audit Committee – David Copeland, Chairman
3. Compensation Committee – F. L. (Steve) Stephens, Chairman
4. Nominating Committee – Jack D. Ramsey, M.D., Chairman

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First Financial Bankshares Because...
We build loyal, life-long relationships by providing
first-class service with personal attention.

First Financial Bankshares is a growing family of community banks that hasn’t forgotten its roots.
We serve thousands of bank customers but treat each one with personal attention and exceptional service.
We operate ten separately chartered banks with 44 locations in 28 Texas communities and focus on each
community as their community bank. We employ 975 dedicated professionals in Texas and regard each
one as a valued member of our family.

At First Financial, we understand that banking is still a local business. That’s why even as we have
grown over the years we’ve stayed true to our model, which keeps each of our ten affiliate banks focused
on meeting the needs of the communities they serve. We believe decisions should be made on the local
level, by hometown people who know their communities best. Our bank presidents have authority to run
their banks and make loan decisions to meet the needs of the communities they serve. Local boards of
directors comprised of community leaders govern each bank, not advisory boards that lack power. In each
market we serve, our goal is to be the bank of choice, and we do that by keeping our focus local.

At the same time, customers today expect a wider range of financial services from their banks - services
which are increasingly difficult for small-town banks to provide. First Financial’s “one bank, ten charters”
concept allows us to offer the services of a big bank while maintaining the hometown feel and
decision-making process of a small bank. Our combined strength means we can offer customers the modern
services they expect, such as online banking, treasury management services, trust services, online bill pay
and debit cards. Our larger size also allows us to operate more efficiently, with consolidated operations.

First Financial Bankshares is proud to be a growing family, but we never forget that serving the needs of
each customer and each community is our ultimate goal. Our commitment to excellent customer service
and hometown banking is unwavering. As we continue to expand in the coming years, you can count on us to
remain true to our values.

President’s Award: Oliva Velasco

Loyal. Dependable. Determined. Professional. Courageous. These are just some of the words co-workers use to describe
Oliva Velasco, who is being honored with First Financial Bankshares’ President’s Award. This year marks Oliva’s 24th
anniversary with the Company. She began with First Financial in 1982 as a proof operator and today manages Account Services
and is a Vice President of First Technology Services, Inc., the Company’s technology subsidiary that serves all of its banks.

Born in Juarez, Mexico, as the youngest of 13 children, Oliva has overcome more than her share of personal and family tragedies,
but through it all has maintained her deep commitment to her faith, to her family and to First Financial. She’s distinguished
herself for her dogged pursuit of fraud cases, either those involving First Financial or its customers. In one example,

Oliva tracked down a fraud case that led into Mexico. While others may have felt the case was impossible to pursue,

Oliva showed her industriousness by calling a former schoolmate in Mexico who is now an attorney. Together,

they tracked down the person with the money and recovered it.

“You don’t mess with Oliva when she’s on a mission,” said a co-worker.

“Oliva was chosen for this award because she is a great example for all of us,” said F. Scott Dueser,
President and CEO of First Financial Bankshares. “She exemplifies the American Dream, excellent
customer service, good management and a dedication to our Company, no matter what her personal
trials have been.”

Our congratulations and thanks to Oliva for exemplifying all of the finest values and qualities that make
First Financial a great place to bank and work.

Growth.

First Financial Bankshares is a Texas bank holding company on the move. During the past year, we added

locations both through acquisitions and new branches. We entered promising new markets in booming

Texas towns, including Bridgeport, Decatur, Boyd, Willow Park and Midlothian. We positioned the Company

for continued growth in the years ahead.

We operate exclusively in Texas, the nation’s second most populous state and one of the fastest-growing.

While our 116-year base of operations is in West Texas, we have focused our growth on expanding

communities with good infrastructure and amenities along the Interstate 20 corridor and the 50-mile

radius around the Dallas-Fort Worth Metroplex. For the first time ever, our assets in the DFW-area

growth markets exceeded $1 billion in 2005, or 44 percent of the Company’s total assets. The projected

growth rate during this decade in many of our recently entered markets, including Bridgeport,

Willow Park, Granbury and Midlothian, exceeds both state and national

projected growth rates, boding well for our prospects in these communities

in the years ahead.

But we’re not growing just for the sake of growth. Becoming a larger bank helps

us better serve our customers, shareholders and employees. Our customers

today can enjoy the convenience of banking at any of our 44 locations and

more than 60 ATMs. Shareholders appreciate the fact our growth has allowed

us to operate more efficiently than the

average bank, resulting in improved earnings and larger

dividend checks. For employees, growth has meant more career

opportunities and expanded benefits.

First Financial is indeed a Texas bank holding company that is

on the move.

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Financial Strength.

Shareholders, customers and employees all value a financially strong institution. In 2005, First Financial
recorded its 19th consecutive year of increased earnings. Keefe, Bruyette & Woods, an investment banking
firm specializing in financial services companies, named First Financial to its “Honor Roll” for achieving
consistently higher annual earnings per share during the past decade. Out of hundreds of publicly traded
banks, only 32 companies made the KBW Honor Roll in 2005.

By many key financial measures, First Financial exceeds its peer group in performance. Our return on
assets (ROA) measured 1.80 percent for 2005, compared with a peer-group average ROA of 1.16 percent.
The Company’s return on equity (ROE) was 16.17 percent in 2005, compared with 13.51 percent for the
peer group. Net interest margin, a key performance measure for banks, stood at 4.49 percent at year-end
2005 for First Financial, compared with 4.06 percent average for the peer group. Meanwhile, total assets
grew 18 percent in 2005, nearly double our average annual asset growth rate during the past decade,
reflecting the impact of acquisitions completed during the year. Trust assets under management at First
Financial Trust & Asset Management Company grew 7.7 percent to a year-end book value of $1.15 billion.

We accomplished this while still carefully controlling expenses. First Financial’s efficiency ratio for
2005 was 52.48 percent, which compared favorably to the peer-group’s average of 60.19 percent.

Asset Growth
(in millions)

$3,000

4
3
7
2
$

5
1
3
2
$

0
3
9
1
$

3
9
9
1
$

3
9
0
2
$

Loan Growth
(in millions)

Net Income Growth
(in thousands)

$1,500

$1,250

$1,000

$750

$250

9
8
2
1
$

4
6
1
1
$

4
6
9
$

8
8
9
$

0
4
9
$

3
2
0
4
4
$

1
7
1
9
3
$

5
0
3
5
3
$

3
5
9
3
3
$

5
5
3
9
2
$

$45,000

$40,000

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

Nonperforming Assets
as a Percentage of Loans Plus Foreclosed
Assets

Net Interest Margin

Efficiency Ratio

%
8
7
4

%
2
5
4

%
4
4
4

%
9
4
4

%
1
5
0

%
4
4
0

%
3
4
0

%
3
3
0

%
2
3
0

.6%

.5%

.4%

.3%

.2%

.1%

60%

50%

40%

30%

20%

10%

%
2
8
3
5

%
6
9
1
5

%
2
5
2
5

%
8
7
1
5

%
8
4
2
5

Customer Service.

Customer service is in our DNA at First Financial Bankshares. We’re Texas-friendly, hometown

bankers, for whom greeting customers with a helpful smile is just the way we do business. In the

spring of 2005, we renewed our deep commitment to

customer service by launching the “Customer Service

First” initiative. This ongoing program challenges us

every day to examine everything we do through the “lens of

the customer,” helping us to strive toward greater excellence

in customer service standards. As part of that commitment,

we introduced our “WOW!” campaign to honor employees

who go beyond the ordinary course of business in showing

superior customer service. In the pages that follow, we will highlight a few of the many employees who

have received “WOW!” awards.

Wow! Customer Service Award:
Janet O’Dell

Talk about “going the extra mile,” Janet O’Dell, a Senior Vice President at
First Financial Bank, Abilene, literally drove customers to their mortgage
closing when they couldn’t make their appointment due to car trouble.
Alan and Loretta Day were ready to close a loan on their new home, but
their car broke down. Rather than cancel the appointment, Janet offered to
pick the Days up at their home, drive them to their closing and then drive
them back home again. Janet’s actions demonstrate how lending a helping
hand can provide great customer service.

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First Financial Bankshares
Family of Community Banks

Presenting the First Financial Bankshares family of community banks — where big-bank services

come with small-town charm, Texas friendliness and a local identity. The First Financial family

spans the Interstate 20 corridor, stretching from Sweetwater east all the way to Midlothian, a distance

of more than 200 miles. Other locations, including San Angelo, Hereford, Southlake and Bridgeport

complete the portfolio. No matter the name of the town, they all share the vibrant, vigorous spirit

that makes them such great places to live, work and bank.

Wow! Customer Service Award:

Lynn Dunn and the mailroom team, First Technology Services, Inc.

A broken postal processor during the New Year’s holiday weekend

meant monthly bank statements might not get mailed

to customers on time. But that wasn’t good enough

for Lynn Dunn and his team in the First Financial

mailroom in Abilene. Thinking outside the box and

without being asked by management, Lynn and

his crew processed the statements without

the equipment and then took them to

another postal meter to apply the

postage. It meant working night and

day throughout the holiday weekend

and making personal sacrifices by

the mailroom team, which in

addition to Lynn included Paul

Chacon, Humberto Chapa and David

Rodriquez. David, in fact, interrupted

his personal leave while taking care of a

newborn baby at home to help his team

complete the task. As a result of this

extraordinary effort, the statements were

ready on time and customers were not

affected by the equipment failure.

Abilene, Clyde, Moran

First Financial Bank, N.A.
Taylor, Callahan and Shackelford Counties
Deposit Market Share 44%

In Thousands

Assets

Loans

Deposits

Equity

Net Income

Return on
Average Assets

Dec. 31,
2005

Dec. 31,
2004

$898,412

$762,941

388,944

362,096

788,043

680,773

68,393

13,992

66,218

13,905

1.63%

1.86%

Efﬁciency Ratio

51.65

47.82

From left: John Prince, Ben McAnally, Scott Dueser, Mike Reaves and Ron Fogle

Main Office
400 Pine
Abilene, Texas 79601
Chartered 1890

Locations
4400 Buffalo Gap Road
Abilene, Texas 79606

4350 Southwest Drive
Abilene, Texas 79606

920 N. Willis
Abilene, Texas 79603

3300 S. 14th
Abilene, Texas 79605

1010 N. Judge Ely Blvd.
Abilene, Texas 79601

701 Pine
Abilene, Texas 79601

1345 Barrow
Abilene, Texas 79605

2617 Antilley Road
Abilene, Texas 79606

1650 State Hwy. 351
Abilene, Texas 79601

718 Elm
Clyde, Texas 79510

400 Ground
Moran, Texas 76464

Senior Officers
F. Scott Dueser
Chairman of the Board

Ron Fogle
Executive Vice President,
Commercial Loans

Ben McAnally
Executive Vice President,
Treasury Management

John Prince
Executive Vice President,
Personal Loans

Mike Reaves
Executive Vice President,
Chief Financial Officer and Cashier

Directors
J. Michael Alexander
President, James M. Alexander & Co.

Tucker S. Bridwell
President and Chief Executive Officer,
Mansefeldt Investment Corporation

Murray Edwards
Principal,
The Edwards Group

Allan D. Frizzell
Executive Vice President,
Enrich Oil Corporation

Tim Lancaster
Chairman, CEO, President,
Hendrick Health System

Raymond A. McDaniel, Jr.
Investments

Bynum Miers
Rancher

Stanley Morris, Jr.
Investments

Kenneth T. Murphy
First Financial Bankshares, Inc.

Dian Graves Stai
Chair,
Mansefeldt Investment Corporation
Director,
Dian Graves Owen Foundation

Joseph E. Canon
Executive Director, Dodge Jones Foundation

Leigh Taliaferro, M.D.
Physician

David Copeland
President, Shelton Family Foundation

Joe Crawford
President, Abilene Aero, Inc.

Mike Denny
President, Batjer and Associates

F. Scott Dueser
First Financial Bankshares, Inc.

Advisory
Bob J. Surovik
McMahon, Surovik, Suttle, Buhrmann,
Hicks, Gill & Cannon, P.C.

Steve Suttle
McMahon, Surovik, Suttle, Buhrmann,
Hicks, Gill & Cannon, P.C.

0546_Witherspoon_PDF 3/22/06 3:52 PM Page 15

Cleburne, Burleson, Alvarado, Midlothian

Eastland, Ranger, Rising Star

First Financial Bank, N.A.
Johnson County Deposit Market Share 23%

First Financial Bank, N.A.
Eastland County Deposit Market Share 53%

In Thousands

Assets

Loans

Deposits

Equity

Dec. 31,
2005

Dec. 31,
2004

$238,114

$229,107

110,711

110,181

217,663

208,458

18,269

19,465

Net Income

3,379

3,739

Return on
Average Assets

1.48%

1.73%

Efﬁciency Ratio

56.92

53.18

In Thousands

Assets

Loans

Deposits

Equity

Net Income

Return on
Average Assets

Dec. 31,
2005

Dec. 31,
2004

$148,599

$61,798

49,626

128,436

14,104

1,644

34,507

55,782

5,859

1,151

1.48%

1.93%

Efﬁciency Ratio

55.40

52.11

From left: Craig Beskow, Matt Reynolds, Derek Schmidt and Brad Evans

From left: Clint S. Ferguson, Jim Davidson and Tommy J. Barrow

Main Office
403 N. Main
Cleburne, Texas 76033
Chartered 1927

Locations
200 N. Ridgeway
Cleburne, Texas 76033

1900 S.W. Wilshire
Burleson, Texas 76028

201 E. Highway 67
Alvarado, Texas 76009

1490 E. Main
Midlothian, Texas 76065

Senior Officers
Matt Reynolds
President and Chief Executive Officer

Craig Beskow
Executive Vice President and Cashier

Brad Evans
Executive Vice President

Derek Schmidt
Executive Vice President

Directors
Perry Elliott
Chairman of the Board

Matt Reynolds
President and Chief Executive Officer

Albert A. Archer
Chairman of the Board,
Walls Industries, Inc.

Gary Bennett
Bennett Printing & Office Supply

F. Scott Dueser
First Financial Bankshares, Inc.

Jim Easdon
Investments

J. Bruce Hildebrand
First Financial Bankshares, Inc.

Hollis E. (Gene) Joslin
Investments

Brent D. Magers
Chief Executive Officer and Administrator,
Walls Regional Hospital

George Marti
Marti Enterprises

Wow! Customer Service Award:

Julie Hasty and Robin Gonzalez

Thanks to the quick thinking of two tellers at First Financial Bank in Cleburne, a crime was stopped and a customer’s
account was protected against loss. A man pulled into the motor bank and presented teller Robin Gonzalez with a
check, which was made payable to one of the bank’s customers. The man’s questions about the check caused Robin
and fellow teller Julie Hasty to be suspicious. At the same time, Julie recognized the customer’s name on the check as
one of her neighbors. She called him and he denied giving anyone a check to cash. At that point, Julie called the
police, while Robin began asking for more identification. The man drove away, but not before Robin and Julie wrote
down his license number. He was later apprehended by police.

Main Office
201 E. Main
Eastland, Texas 76448
Chartered 1934

Locations
106 Main
Ranger, Texas 76470

206 West College
Rising Star, Texas 76471

Senior Officers
Tommy J. Barrow
Chairman of the Board, President and
Chief Executive Officer

Clint S. Ferguson
Executive Vice President

Jim Davidson
Senior Vice President and Cashier

Jim Keffer
President, EBAA Iron Sales, Inc.

Mike T. Perry
President, Kinnaird, Rossander & Perry
Agency, Inc.

Dale Squiers, R.Ph.
Owner, Eastland Drug Company

Tommy Warford
Turner, Seaberry and Warford, Attorneys

M.D. White, Jr.
President and Owner,
Ace Hardware Store, Eastland/Cisco

Jonathan Newton
Senior Vice President

Directors
Tommy J. Barrow
Chairman of the Board, President and
Chief Executive Officer

Doug Crawley
Rancher

Clint S. Ferguson
Executive Vice President

Doug Ford
Retired President and Chief Executive Officer
Peoples State Bank, Clyde

J. Bruce Hildebrand
First Financial Bankshares, Inc.

Wow! Customer Service Award:

Jan Wise

After devastating wildfires swept through Cross Plains, Texas, in December 2005,
Jan Wise, Vice President and Branch Manager at the Rising Star office of
First Financial Bank, stepped up to help. Jan recruited volunteers and organized
a fund-raising barbecue dinner to support victims of the fires. Thanks to Jan’s
leadership, the fund-raiser earned $8,000. First Financial employees such as
Jan take pride in being an active part of their communities and giving back to the
community generously when needs arise.

0546_Witherspoon_PDF 3/22/06 3:52 PM Page 17

Hereford

Mineral Wells

Hereford State Bank
Deaf Smith County Deposit Market Share 48%

City National Bank
Palo Pinto County Deposit Market Share 28%

In Thousands

Assets

Loans

Deposits

Equity

Net Income

Return on
Average Assets

Dec. 31,
2005

Dec. 31,
2004

$104,821

$107,056

67,637

87,621

8,346

1,736

65,615

90,003

8,446

1,674

1.72%

1.75%

Efﬁciency Ratio

50.53

51.19

From left: Kent Jackson, Jeff Brown, Charlene Sanders, Mike Mauldin, Larry Alley and
Steve Gilbert

Main Office
212 E. Third
Hereford, Texas 79045
Chartered 1947

Senior Officers
Mike Mauldin
Chairman of the Board, President and
Chief Executive Officer

Steve Gilbert
Executive Vice President and Cashier

Kent Jackson
Executive Vice President

Jeff Brown
Senior Vice President

Directors
Mike Mauldin
Chairman of the Board, President and
Chief Executive Officer

F. Scott Dueser
First Financial Bankshares, Inc.

Steve Lewis, D.V.M.
Manager and Senior Partner,
Hereford Veterinary Clinic

Kade Matthews
Ranching and Investments

Garth Merrick
President and Chief Executive Officer,
Merrick Petfoods, Inc.

Allen Parson
Restaurateur and Investments

Craig Smith
Retired Chairman of the Board,
President and Chief Executive Officer,
Hereford State Bank

Jerry Stevens
Vice President and General Manager,
Stevens 5-Star Car and Truck Center

Johnny E. Trotter
President and Chief Executive Officer,
Livestock Investors, Ltd.

Roger Williams
Farmer

From left: Mike Mearse, Eddie Gregory, Kenneth Williamson and Brad Seay

Main Office
1900 E. Hubbard
Mineral Wells, Texas 76067
Chartered 1925

Senior Officers
Kenneth A. Williamson
Chairman of the Board, President and
Chief Executive Officer

Brad Seay
Executive Vice President,
Lending

Eddie Gregory
Senior Vice President and Cashier

Mike Mearse
Senior Vice President

Directors
Kenneth A. Williamson
Chairman of the Board, President and
Chief Executive Officer

F. Scott Dueser
First Financial Bankshares, Inc.

Doyle Lee
Chairman and CEO,
Weatherford National Bank

Paul McGettes
Chief Financial Officer,
Upham Oil & Gas Company, L.P.

Terry L. Murphy
President and Chief Executive Officer,
Murphy and Murphy, Inc.

In Thousands

Assets

Loans

Deposits

Equity

Net Income

Return on
Average Assets

Dec. 31,
2005

Dec. 31,
2004

$129,535

$114,484

69,486

112,318

16,830

2,177

61,236

97,148

17,000

2,068

1.81%

2.15%

Efﬁciency Ratio

45.01

43.18

Don O’Neal
O’Neal Distributing Company, Inc.,
O’Neal Enterprises, Inc.

David Ramsey, M.D.
Family Practice Center

Jimmy Seay
Investments and Ranching

Walter Joe Thomas, D.D.S.
Dentist

Wow! Customer Service Award:
Debbie Gonzalez

Debbie Gonzalez, a Loan Assistant and Banking Officer at Hereford State Bank, didn’t
let “banking hours” keep her from providing exceptional customer service. One of
Debbie’s customers told Debbie that her daughter would be in town over the weekend
and needed some papers notarized. Debbie took the initiative and took her notary
stamp home with her, called her customer on Saturday morning and went to her home
to notarize the documents. With employees like Debbie, it’s no wonder Hereford
State Bank is the city’s leading bank.

Wow! Customer Service Award:
Evelia Chavez

Evelia Chavez, Teller Supervisor at City National Bank in Mineral Wells, went out of her way to assist a local merchant
who was having trouble processing bank card transactions. The merchant pulled into Evelia’s lane at the drive-through
one Saturday morning and explained his problem to her. Unable to resolve the problem right then, she promised to
stop by his store after the motor bank closed at noon. Once at the store, Evelia walked through the steps, wrote down
instructions to leave with the merchant and suggested a better place in the store for keeping the bank card machine.
Problem solved!

0546_Witherspoon_PDF 3/22/06 3:52 PM Page 19

San Angelo

Southlake, Trophy Club, Keller, Bridgeport, Boyd, Decatur

San Angelo National Bank
Tom Green County Deposit Market Share 22%

First Financial Bank, N.A., Southlake
Deposit market share for the cities of Southlake, Keller and Trophy Club: 11%

Deposit market share for Wise County (Bridgeport, Boyd and Decatur): 23%

In Thousands

Assets

Loans

Deposits

Equity

Dec. 31,
2005

Dec. 31,
2004

$310,673

$311,189

116,438

122,649

264,318

261,826

42,759

43,783

Net Income

5,814

5,825

Return on
Average Assets

1.95%

Efﬁciency Ratio

42.93

44.24

From left: Michael L. Boyd, Katherine M. Reeves, Robert Pate and David Byrd

Main Office
301 W. Beauregard
San Angelo, Texas 76903
Chartered 1975

Locations
3471 Knickerbocker
San Angelo, Texas 76904

Senior Officers
Michael L. Boyd
Chairman of the Board,
President and Chief Executive Officer

Robert Pate
Executive Vice President

Katherine Reeves
Executive Vice President and Cashier

Directors
Michael L. Boyd
Chairman of the Board,
President and Chief Executive Officer

W. Dan Cravy, M.D.
Physician

Rick DeHoyos
Attorney,
Ratliff, Edwards & DeHoyos

David B. Drake
Investment Advisor,
PrimeVest

F. Scott Dueser
First Financial Bankshares, Inc.

Doug Eakman
Owner,
Pecos Street Pharmacy

Ron Giddiens
Investments/Business Consulting

Joe Henderson
President,
Porter Henderson Implement Company, Inc.

J. Bruce Hildebrand
First Financial Bankshares, Inc.

Robert D. Housley
President and Owner,
Housley Communications

David F. Lupton
President,
Angelo Glass & Mirror Company, Inc.

Bill Pfluger
Rancher

Barbara Riley
President,
Olio, Inc.

Richard W. Salmon
Investments

John E. Schwartz, Sr.
Farmer/Rancher

Mary Jane Steadman
Attorney,
Real Estate Investment Management

F.L. (Steve) Stephens
Retired Chairman and CEO,
Town & Country Food Stores, Inc.

Wow! Customer Service Award:
Karla Howell

It’s the little details that can make all the difference in providing superior customer
service. Just ask Karla Howell, an employee of San Angelo National Bank. When
Karla was promoted this past year from Collection Teller to Personal Banker, she
took the initiative to write personal notes to each of her customers, informing them
of the change and thanking them for their business. Karla’s thoughtfulness made her
customers feel appreciated and eased any concerns about the transition.

In Thousands

Assets

Loans

Deposits

Equity

Net Income

Return on
Average Assets

Dec. 31,
2005

Dec. 31,
2004

$272,927

$92,205

141,794

233,139

32,672

1,184

69,240

81,937

6,829

779

1.02%

0.98%

Efﬁciency Ratio

68.00

71.42

Derrell E. Johnson
President, American Council of Engineering
Companies Life Health Trust

Mark L. Jones
President and Chief Executive Officer

K. Wayne Lee
President, DDFW Properties

Ralph Manoushagian
Land Manager
Approach Resources, Inc.
Oil & Gas Exploration

Dr. David Ray
Family Physician

Jim Ridenour
President, Sunbelt Station Service

Directors Emeritus

M. L. Manoushagian
Oil & Gas Investments & Real Estate

Billie C. Green
Retired President,
First National Bank of Bridgeport

From left: Mark L. Jones, Homer Pittman, Jr., J. Sean Shope and F. Mills Shallene

Main Office
3205 E. Highway 114
Southlake, Texas 76092
Chartered 1907

Locations
95 Trophy Club Drive
Trophy Club, Texas 76262

891 E. Keller Parkway
Suite 100
Keller, Texas 76248

909 Stevens
Bridgeport, Texas 76426

609 Rock Island Avenue
Boyd, Texas 76023

1415 S. FM 51
Decatur, Texas 76234

Senior Officers
Mark L. Jones
President and Chief Executive Officer

F. Mills Shallene
Bridgeport President

J. Sean Shope
Senior Vice President

Homer Pittman, Jr.
Chief Financial Officer

Directors
Perry D. Elliott
Chairman of the Board

James E. Burger
Burger Construction

Jack Dortch
Jack Dortch Insurance Agency

F. Scott Dueser
First Financial Bankshares, Inc.

Barry Green
Attorney and Partner,
Smith & Green, P.C., Law Firm

Wow! Customer Service Award:
Coy Stephens, Dwight Reeves, Beverly Lindsey and
Margaret Hunt

When the former First National Bank of Bridgeport joined First Financial Bank,
Southlake this past year, bank employees in Bridgeport, Decatur and Boyd wanted
their customers to know they would still be dealing with the same friendly
hometown team. Four employees in our Wise County banks - Margaret Hunt,
Dwight Reeves, Coy Stephens and Beverly Lindsey - prepared and delivered
more than 40 homemade cakes and pies and numerous cheese and meat
trays to their customers as their way of saying “we appreciate you.” Our
thanks to these fine employees for a great example of exceptional customer service.

0546_Witherspoon_PDF 3/22/06 3:52 PM Page 21

Stephenville, Granbury, Glen Rose

Sweetwater, Roby, Trent

First Financial Bank, N.A.
Erath, Hood and Somervell Counties
Deposit Market Share 22%

First National Bank
Nolan and Fisher Counties Deposit Market Share 41%

In Thousands

Assets

Loans

Deposits

Equity

Dec. 31,
2005

Dec. 31,
2004

$295,567

$268,218

164,739

159,079

255,448

234,651

34,321

30,545

Net Income

4,502

3,075

Return on
Average Assets

1.67%

1.75%

Efﬁciency Ratio

52.47

50.95

In Thousands

Assets

Loans

Deposits

Equity

Dec. 31,
2005

Dec. 31,
2004

$119,391

$120,986

53,785

55,282

108,912

104,031

10,222

10,730

Net Income

2,001

2,227

Return on
Average Assets

1.69%

1.78%

Efﬁciency Ratio

50.13

48.11

From left: Ron Butler, Dereece Howell, Robert Lemons, Ken Luker, John Power and Bart Rodgers

From left: J.V. Martin, Kirby Andrews and Donnie Ruppert

Main Office
2201 W. South Loop
Stephenville, Texas 76401
Chartered 1997

Locations
1875 Lingleville Road
Stephenville, Texas 76401

199 N. Columbia
Stephenville, Texas 76401

400 Big Bend Trail
Glen Rose, Texas 76043

2007 East Highway 377
Granbury, Texas 76049

1600 S. Morgan
Granbury, Texas 76048

5310 E. Hwy. 377, Suite 300
Granbury, Texas 76049
(loan production office)

Senior Officers
Ron Butler
President and Chief Executive Officer

Perry D. Elliott
Vice Chairman

John Power
Glen Rose President

Bart Rodgers
Granbury President

Dereece Howell
Executive Vice President and Cashier

Robert Lemons
Executive Vice President

Ken Luker
Executive Vice President

Directors
James C. Terrell, Jr., M.D.
Chairman of the Board

Perry D. Elliott
Vice Chairman

Ron Butler
President and Chief Executive Officer

William L. Corbin
Investments

F. Scott Dueser
First Financial Bankshares, Inc.

J. Bruce Hildebrand
First Financial Bankshares, Inc.

Bill Hooks
President, Hooks Lakeside Motors

Garry Z. Luker
President, Sunchase Development Co.

Bill Parham
Parham & Parham, CPAs

Jerry Parham
Investments

Royce Swaim
Owner, Swaim Farm & Ranch

Frank Terrell, M.D.
Ophthalmologist

John Terrill
Attorney

Wow! Customer Service Award:

Irma Tiscareno Zipp

When Eddie and Sue McDonald lost their Louisiana home to Hurricane Rita last fall, they temporarily moved to
Stephenville. Needing to establish a local banking relationship, they met Irma Tiscareno Zipp, Assistant Vice
President and Branch Manager at First Financial’s River North branch, who so impressed them with her friendly,
sympathetic and caring attitude that they changed previous plans and decided to relocate permanently to Stephenville.

Main Office
201 Elm
Sweetwater, Texas 79556
Chartered 1948

Locations
123 N. Concho
Roby, Texas 79543

117 N. Main
Trent, Texas 79561

Senior Officers
J.V. Martin
Chairman of the Board, President and
Chief Executive Officer

Kirby Andrews
Executive Vice President, Lending

Donnie Ruppert
Executive Vice President and Controller

Melody Collins
Senior Vice President, Loan Operations

Rodney Foster
Senior Vice President, Lending

Directors
J.V. Martin
Chairman of the Board, President and
Chief Executive Officer

Glenn D. Bennett
Bennett & Associates

Louis Brooks, Jr.
Rancher

Bill W. Burns
President, Bill Burns Oil Co., Inc.

Ronnie Cox
Owner, Cox Jewelry

J. Bruce Hildebrand
First Financial Bankshares, Inc.

Cecil J. King
Retired President, Citizens State Bank, Roby

Jay Lawrence
President, MAL Enterprises, Inc.

Thomas L. Rees, Sr.
Rees and Rees, Attorneys

Wow! Customer Service Award:
Nowana Cashiola

Exceeding customers’ expectations is what First Financial’s “Customer Service First” initiative is all about. A recent
example of this winning attitude involves Nowana Cashiola, an employee at First National Bank, Sweetwater. When a
lost set of keys was found at the bank, Nowana didn’t just hold onto them until the customer claimed them. Rather,
she noticed one of the keys on the ring was for a post office box, so she called the post office and identified the name
of the owner of the mailbox. Nowana then called the customer, who was elated to know the keys were safe. That’s some
great detective work, Nowana, and a prime example of putting customers first.

0546_Witherspoon_PDF 3/22/06 3:52 PM Page 23

Weatherford, Aledo, Willow Park

First Financial Trust & Asset Management Company, N.A.

Weatherford National Bank
Parker County Deposit Market Share 27%

From left: Jay Gibbs, Larry Mangrem, Doyle Lee and Bob Bradberry

Main Office
101 N. Main
Weatherford, Texas 76086
Chartered 1984

Locations
101 College Park Drive
Weatherford, Texas 76086

1214 N. Main
Weatherford, Texas 76086

505 Farm Road 1187
Aledo, Texas 76008

4100 E. I-20 South Service Road
Willow Park, Texas 76087

Senior Officers
Doyle Lee
Chairman of the Board and
Chief Executive Officer

Jay Gibbs
President

Bob Bradberry
Executive Vice President

Kent Hudson
Senior Vice President

Larry Mangrem
Senior Vice President and Cashier

Louis Sneed
Senior Vice President

In Thousands

Assets

Loans

Deposits

Equity

Dec. 31,
2005

Dec. 31,
2004

$272,493

$246,794

125,446

124,339

247,134

222,426

21,862

22,533

Net Income

4,512

4,320

Return on
Average Assets

1.79%

1.94%

Efﬁciency Ratio

51.97

48.40

Directors
Doyle Lee
Chairman of the Board and
Chief Executive Officer

Greg L. Barron
President,
G.L. Barron Company, Inc.

Stephen G. Brogdon, D.D.S.
General and Cosmetic Dentistry

Mac A. Coalson
Real Estate and Ranching

F. Scott Dueser
First Financial Bankshares, Inc.

Jay Gibbs
President

Clay Hicks
Oil and Gas Investments

Nan Kingsley
President,
Bluestem Studios, Inc.

Mike White, O.D.
Therapeutic Optometrist

Wow! Customer Service Award:
Carol Hatfield

When a 90-year-old customer came into Weatherford National Bank to request some changes in how her account was
set up, employee Carol Hatfield went the extra mile to assist her. The change the customer requested required the filing
of an assumed name certificate at the local government office. Carol took her lunch hour to drive the customer to the
government office and secure the certificate. They were then able to go back to the bank and get the account changes
processed just the way the customer wanted. That’s what we call exceptional customer service!

First Financial Trust & Asset Management Company, N.A.,
produced outstanding results in its second full year as a separate
trust and asset management company. With offices in Abilene,
the Dallas/Fort Worth Metroplex, San Angelo, Stephenville and
Sweetwater, the Company showed strong growth in both assets
and income during 2005. Assets ended the year with a book
value of $1.15 billion, a 7.7 percent growth for the year, with all
offices showing an increase in assets. Trust fee revenue rose
11.0 percent from $6.37 million in 2004 to $7.07 million at the
end of 2005. The contribution of after-tax income was up 19.6
percent at $1.9 million for 2005 versus $1.6 million in 2004.

The investment markets were relatively flat for the year, with
our investment group providing modest returns similar to our
benchmark and the indices. We continue to outperform over the
longer term, with an 11-year annualized total equity portfolio
return of 10.15 percent.

First Financial Trust & Asset Management Company officers,
from left: David Byrd (San Angelo), Konrad Halbert
(DFW Metroplex), Robert Patterson, Joe Ayres (Stephenville),
Kirk Thaxton (Abilene) and Michael Sheehan (Sweetwater)

Highlights for 2005 include:

Experienced outstanding net income growth of 58.4 percent in Stephenville, 28.2 percent in San Angelo and 22.3
percent in Abilene.

With the addition of Konrad Halbert’s expertise, we established a solid base in the DFW Metroplex with strong growth
in assets. We are poised for expansion in the coming years in this important market.

Renewal and expansion of our contract with our accounting software provider that will enable us to streamline the
investment process through a new and improved trading platform, a strategic planning module and several additional
internal product efficiencies.

In 2006, our primary focus remains on providing premier service through a wide variety of financial products to
include trust and estate administration, IRAs and a range of investment options. We look forward to serving you and
your peers not only now, but for generations to come.

Trust Assets
(in millions)

Trust Fees
(in millions)

Trust Net Income
(in millions)

6
8
9
$

2
9
9
$

8
6
0
1
$

9
5
9
$

0
5
1
1
$

$1,200

$1,000

$800

$600

$400

$200

7
0
7
$

9
8
5
$

4
8
5
$

7
3
6
$

2
0
6
$

$2.0

$1.8

$1.6

$1.4

$1.2

9
0
9
1
$

0
0
6
1
$

6
9
5
1
$

7
8
5
1
$

4
2
3
1
$

0546_Witherspoon_PDF 3/22/06 3:52 PM Page 25

Selected Financial Data

Corporate Information

In thousands (except per share data)

Year-End

Total Assets(1)

Shareholders’
Equity(1)

Net
Income(1)

Basic
Earnings
per Share(2)

Cash
Dividends
per Share(2)

Stock
Dividends
and Splits

Year-End
Book Value
per Share(2)

Year-End
Market Value
per Share(2)

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996
Ten-Year
Compound
Growth Rate

$2,733,827

$276,276

$44,023

$2.13

$1.10

4/3 split

$13.34

$35.06

2,315,224

265,545

39,171

2,092,571

251,487

35,305

1,993,183

238,768

33,953

1,929,694

213,654

29,355

1,753,814

196,121

28,316

1,723,369

178,663

25,690

1,686,647

169,449

23,254

1,573,509

148,226

20,063

1,262,041

131,161

18,122

1.90

1.71

1.65

1.43

1.37

1.24

1.13

1.02

0.95

1.00

0.91

0.81

0.70

0.62

0.54

0.48

0.42

0.38

–

5/4 split

–

5/4 split

–

12.84

12.19

11.59

10.40

9.56

8.60

10% dividend

8.18

5/4 split

7.48

6.82

33.61

30.84

22.80

18.06

15.09

14.76

16.80

18.71

13.97

9.91%

9.17%

10.41%

8.80%

12.50%

–

7.62%

14.13%

(1) As originally reported at the close of each year and prior to restatements for pooling-of-interests.
(2) Adjusted for stock dividends and splits.

2005 Common Stock Market Value and Dividend Data

Quarter

High

Low

Dividends

Fourth

Third

Second

First

$38.88

$33.31

$35.06

$0.28

36.22

34.46

34.99

32.20

29.06

32.14

34.83

33.84

33.47

0.28

0.26

2004 Common Stock Market Value and Dividend Data

Quarter

High

Low

Dividends

Fourth

Third

Second

First

$34.46

$30.00

$33.61

$0.26

32.28

31.97

32.93

28.51

28.53

28.31

30.12

31.45

30.14

0.26

0.23

First Financial Bankshares executive officers, from left: Robert S. Patterson, Gary S. Gragg, Gary L. Webb, Michele P. Stevens, F. Scott Dueser
and J. Bruce Hildebrand

Officers
Kenneth T. Murphy
Chairman of the Board

F. Scott Dueser
President and Chief Executive Officer

J. Bruce Hildebrand
Executive Vice President and
Chief Financial Officer

Gary L. Webb
Executive Vice President,
Operations

Gary S. Gragg
Executive Vice President,
Lending

Robert S. Patterson
Executive Vice President,
Trust

Michele P. Stevens
Senior Vice President,
Marketing

Daniel A. Ortiz
Vice President,
Multicultural Development

William A. Rowe
Vice President,
Investment Securities

Gaila Kilpatrick
Assistant Secretary

Bob Goodner
Compliance Officer

Barbara Wright
Compliance Ofﬁcer

Annual Meeting
Tuesday, April 25, 2006
Abilene Civic Center
1100 N. Sixth
Abilene, Texas 79601

Corporate Offices
400 Pine
Abilene, Texas 79601
325.627.7155
www.ffin.com

Corporate Mailing Address
P.O. Box 701
Abilene, Texas 79604

Common Stock Listing
The NASDAQ Stock Market®
Symbol: FFIN

Independent Public Auditors
Ernst & Young LLP

For Financial and Investor
Information, Contact:
J. Bruce Hildebrand
Executive Vice President and CFO
325.627.7167

David A. Hogan
Director, Investor Relations
325.627.7114
investorrelations@ffin.com

Transfer Agent
The Bank of New York
866.828.8173

Address Shareholder Inquiries to:
The Bank of New York
Investor Services Department
P.O. Box 11258
New York, NY 10286-1258

E-mail Address:
shareowners@bankofny.com

The Bank of New York
Stock Transfer Website:
www.stockbny.com

Send Certificates for Transfer and
Address Changes to:
Receive and Deliver Dept.
P.O. Box 11002
New York, NY 10286-1002

Certain statements contained in this annual report 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. Except as otherwise stated in this annual report,
the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.

0546_Witherspoon_PDF 3/22/06 3:52 PM Page 27

A family of community banks

400 Pine, Abilene, Texas 79601 • www.ffin.com