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South Plains FinancialThank you for 125 years of allowing us to put You First. 2 0 1 4 A N N U A L R E P O R T CELEBRATING OUR FIRST 125 YEARS. Since opening our doors in 1890, First Financial has always followed a simple philosophy: You First. It means we never forget who we really work for – you – our customers. As we reflect on our first 125 years, we look forward to continuing to put You First. A LETTER TO OUR SHAREHOLDERS. “Thanks to you, after 125 years, we’re just getting started.” – F. Scott Dueser, Chairman, President and CEOx LETTER TO SHAREHOLDERS Our balance sheet showed excellent growth as well. This was especially First Financial Bankshares is celebrating a noteworthy milestone in 2015—its 125th anniversary. As we look back on the stellar history of our company, we are reminded how much of our success has been due to the support of our stockholders, customers and communities. We appreciate the impressive since we did not have an acquisition in 2014, and all of the growth was organic. Consolidated assets expanded 12.0 percent to $5.85 billion from $5.22 billion at the end of 2013. Loans grew 9.2 percent, which increased our net interest income. Loans at year-end totaled $2.94 billion versus $2.69 billion at the end of 2013. And deposits increased 14.9 percent to $4.75 billion from $4.14 billion. Shareholders’ equity at year-end was $681.5 million, up 16.0 percent from $587.6 million. opportunity to have put You First during all As it had done in the previous several years, our First Financial Trust & these years, and thank you most warmly. Asset Management subsidiary delivered excellent results for 2014. Total We also want to thank the First Financial team—our board members, officers and employees—who execute our strategy every day to ensure that we deliver superior service to our customers and reward our shareholders. In 2014, their skill and dedication made us the #1 top- performing bank in Bank Director magazine’s rating of publicly traded banks in the $5 billion to $50 billion asset category. The magazine’s annual scorecard rates all publicly traded banks in four asset-size categories according to profitability, capital adequacy and asset quality. assets under management at year-end reached a book value of $2.77 billion, a 12.5 percent increase from $2.46 billion a year earlier. Market value of the assets under management increased 11.9 percent to $3.76 billion from $3.36 billion. With fee income growing 15.0 percent to $18.8 million from $16.3 million, the trust company recorded earnings after tax of $7.1 million, a gain of 15.7 percent from $6.1 million in 2013. This was the fourth consecutive year that our trust company increased its annual net income by almost a million dollars. We are deeply honored to receive this award. It was the second time First STRATEGIC INITIATIVES Financial placed first, and the sixth consecutive time the magazine ranked us as #1, #2 or #3 in the nation. STRONG FINANCIAL RESULTS Net income for 2014 grew 13.6 percent to $89.6 million from $78.9 million in 2013. Basic earnings per share rose to $1.40 from $1.24. With these gains, 2014 became the 28th consecutive year our company produced higher earnings. Net interest income, our largest source of revenue, increased 12.8 percent to $194.4 million from $172.3 million a year earlier. However, the persistence of extremely low interest rates continued to put pressure on our net interest margin, a key profitability metric that expresses net interest income as a percentage of average interest-earning assets. Our net interest margin last year declined to 4.20 percent from 4.22 percent for 2013. The provision for loan losses increased 19.0 percent to $4.5 million from $3.8 million in 2013. The increase was primarily due to our continued strong growth in loans. Noninterest income grew 7.4 percent to $66.6 million from $62.1 million, while noninterest expense rose 9.5 percent to $137.9 million from $126.0 million. We gave a good part of our attention last year to developing and upgrading our branches. In early 2014, we moved our Keller branch to the beautiful new building that we own. We also remodeled our Roby and Ranger offices to state-of-the-art facilities. In August, we completed a new branch in Beaumont, which also houses a First Financial Trust & Asset Management office headed by Bradley D. Brown, CPA. We are very pleased with the growth of the branch and trust office in Beaumont and are looking forward to a very bright future in our Southeast Texas Region. Also in August, we opened a location in New Waverly as an expansion of our Huntsville Region. We decided to locate a branch in New Waverly because our customer base in this area has been growing rapidly and because the community asked us to open a branch there. In October, we opened a First Financial Trust & Asset Management office in Lubbock headed by Courtney Jordan. Early in 2015, we completed our new branch on Adams Street and I-20 in Weatherford and moved from a temporary building. At present, we have under construction a four-story building in Fort Worth at the intersection of Forest Park Boulevard and Rosedale. This location, just west of We are pleased that in 2014 we again outperformed our peer group of downtown Fort Worth, will be convenient for our customers since it offers banks on several key financial metrics. Our return on average assets was easy access from Texas Highway 121 and I-30. Fort Worth has been very 1.65 percent compared with 0.94 percent for our peers. Return on average good to our company—we have experienced such excellent growth in equity was 14.00 percent versus our peers’ 8.15 percent. Our net interest trust, depository and lending services that we have outgrown our current margin of 4.20 percent surpassed their 3.59 percent. And we achieved a leased facility. We are looking forward to moving into this new building better efficiency ratio (expenses as a portion of revenues) than they did— in 2015. With the opening of all the new locations, we now have 62 49.24 percent as opposed to their 66.67 percent. branches and eight trust offices across the state. A Letter To Our Shareholders :: Page 3 THE 2015 WALTER JOHNSON AWARD JUNE D. WIDEMAN The Walter Johnson Award is the highest honor that the bank bestows upon a person who has contributed greatly and advanced our company to new heights for our customers, shareholders and employees just like Walter Johnson did. This award has only been bestowed four times in the last ten years: in 2005 to Olivia Velasco, 2006 to Michele Stevens, 2007 to Perry Elliott and 2009 to Kenneth T. Murphy. The Walter Johnson Award is being given for the fifth time to June D. Wideman. June is the epitome of customer service first and handles our customers and shareholders with the utmost grace, expertise and care, not to mention being a role model to the entire company. June started with the company 31 years ago as executive secretary to Mike Brooks and then moved up to administrative assistant to Kenneth T. Murphy. She is presently the executive assistant to Scott Dueser. June comes to work every day with the most positive attitude. She has great organizational skills, handles a very heavy workload with great ease and always stays until the job is done. She has an enormous amount of institutional knowledge about our company and can handle any customer or situation with much grace and dignity. The company could not handle the workload that we do without June doing much of the heavy lifting, and we greatly appreciate her daily support and effort to make our jobs easier. It is our pleasure to honor June D. Wideman with the Walter Johnson Award for what she has contributed to our company and for always going beyond the call of duty. NEW DIRECTOR We are pleased to announce that April Anthony, Chief Executive Officer of Encompass Home Health and Hospice and of Homecare Homebase, has accepted nomination for election as a director of the Company at our Annual Shareholders’ Meeting in April. Encompass Home Health and Hospice provides home care and hospice services to over 18,000 patients per day through a network of 140 offices in 13 states. Homecare Homebase provides a leading software technology platform for the home health and hospice industries. April, a CPA, holds a Bachelor of Business Administration degree from Abilene Christian University; after graduation, she spent three years with Pricewaterhouse Coopers, LLP as an auditor. She purchased her first home health care company at age 25 and led that company from 1992 until 1997 before selling it to a publicly traded company. She is also the founder and a director of the Encompass Cares Foundation, a nonprofit foundation formed to support domestic and international medical mission efforts. Over the past five years, Encompass Cares has provided over $1 million in mission grants. She serves on the board of directors of Great Lakes Caring, a home care and hospice services company based in Michigan, and has been a member of the board of trustees of Abilene Christian University for 16 years. April and her husband, Mark, live in Dallas and have three children – Ashlyn, Luke and Allie. LOOKING AHEAD With the large drop in oil and gas prices, we have seen volatility in stock prices for Texas banks. We have been painted with the same broad brush as all other Texas banks, namely, the expectation that the steep decline in oil and gas prices has to hurt our performance. However, our company has limited direct exposure to that industry. In fact, loans directly tied to the oil and gas industry amounted to only three percent of the Company’s loan portfolio at December 31, 2014. Moreover, we believe we can continue to achieve earnings growth despite the current situation in the oil and gas industry as we believe our markets are now more economically diversified and, therefore, more resilient than they were during prior periods of significant oil and gas price declines. There are now a number of Texas banks up for sale, and we continue to expect considerable consolidation in the industry. We are diligently searching for well-managed banks at the right price that fit our culture and will bring long-term value to our company. Since we opened our doors in 1890, First Financial has followed a simple philosophy: You First. It means we never forget who we really work for. We know that you, our customers and shareholders, have entrusted us not only with your money and investments, but also with your hopes and dreams. Our customers and stockholders are our most important assets, and we wouldn’t be where we are today without you. Thanks to you, after 125 years, we’re just getting started. F. Scott Dueser Chairman, President and CEO FINANCIAL HIG HLIGH TS IN THOUSANDS (except for share data) IN THOUSANDS (except for share data) FOR THE YEAR 2014 2013 % INCREASE FOR THE YEAR 2014 2013 % INCREASE NET INCOME $89,559 $78,868 13.56% AT YEAR-END Basic Earnings (PER SHARE) $1.40 $1.24 Dividends Declared $35,233 $32,823 Dividends (PER SHARE) $0.55 $0.52 12.90% 7.34% 5.77% Assets Securities Loans Deposits $5,848,202 $5,222,208 11.99% $2,416,297 $2,058,407 17.39% $2,937,991 $2,689,448 9.24% $4,750,255 $4,135,075 14.88% $5,428,583 $4,799,260 13.11% $2,219,029 $1,963,925 12.99% $2,786,011 $2,431,872 14.56% Shareholders’ Equity $681,537 $587,647 15.98% Book Value Per Share $10.63 $9.18 15.67% $4,346,859 $3,779,809 15.00% Trust Assets (Book Value) $2,773,596 $2,464,861 12.52% AVERAGES Assets Securities Loans Deposits Shareholders’ Equity $639,744 $573,385 11.57% NET INCOME GROWTH (in thousands) KEY RATIOS 2010 $59,659 2011 $68,369 2012 $74,225 2013 $78,868 2014 $89,559 Return On Avg. Assets 1.65% 1.64% Return On Avg. Equity 14.00% 13.75% Year-End Equity/Assets 11.65% 11.25% Efficiency 49.24% 50.19% RETURN ON AVERAGE EQUITY EFFICIENCY RATIO 2010 13.74% 2011 14.44% 2012 13.85% 2013 13.75% 2014 14.00% 2010 49.49% 2011 48.37% 2012 48.14% 2013 50.19% 2014 49.24% A Letter To Our Shareholders | Financial Highlights :: Page 5 SELECTED FINANCIAL DATA IN THOUSANDS (except for share data) YEAR-END TOTAL ASSETS SHAREHOLDERS’ EQUITY NET INCOME BASIC EARNINGS (PER SHARE) CASH DIVIDENDS (PER SHARE) STOCK DIVIDENDS AND SPLITS YEAR-END BOOK VALUE (PER SHARE) YEAR-END MARKET VALUE (PER SHARE) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Ten-Year Compound Growth Rate $2,733,827 $276,276 $44,023 $0.71 $0.37 4/3 split $4.45 $11.69 $2,850,165 $300,901 $46,029 $0.74 $3,070,309 $335,495 $49,490 $0.80 $3,212,385 $368,782 $53,164 $0.86 $3,279,456 $415,702 $53,797 $0.86 $3,776,367 $441,688 $59,659 $0.96 $0.40 $0.42 $0.45 $0.46 $0.46 – – – – – $4.84 $5.39 $5.91 $6.66 $7.03 $13.96 $12.55 $18.41 $18.08 $17.09 $4,120,531 $508,537 $68,369 $1.09 $0.48 3/2 split $8.08 $16.72 $4,502,012 $556,963 $74,225 $1.18 $5,222,208 $587,647 $78,868 $1.24 $0.50 $0.52 – – $8.84 $9.18 $19.51 $33.06 $5,848,202 $681,537 $89,559 $1.40 $0.55 2/1 split $10.63 $29.88 9.71% 9.88% 8.63% 8.24% 5.08% – 9.52% 10.30% Adjusted for stock dividends and splits 2013 COMMON STOCK MARKET VALUE AND DIVIDEND DATA NET INTEREST MARGIN QUARTER HIGH LOW CLOSE DIVIDENDS Fourth $33.76 $28.26 $33.06 Third $32.00 $27.84 $29.43 Second $28.45 $22.96 $27.83 First $24.50 $19.93 $24.30 $0.13 $0.13 $0.13 $0.13 2010 4.68% 2011 4.62% 2012 4.28% 2013 4.22% 2014 4.20% 2014 COMMON STOCK MARKET VALUE AND DIVIDEND DATA RETURN ON AVERAGE ASSETS QUARTER HIGH LOW CLOSE DIVIDENDS Fourth $32.34 $26.58 $29.88 Third $32.54 $27.72 $27.79 Second $32.30 $28.48 $31.37 First $33.47 $28.61 $30.90 $0.14 $0.14 $0.14 $0.13 2010 1.75% 2011 1.78% 2012 1.75% 2013 1.64% 2014 1.65% FIRST FINANCIAL BANKSHARES LOCATIONS Abilene* ............. 325.627.7000 Glen Rose ......... 254.897.4808 Port Arthur ......... 409.726.8000 Acton ................. 817.408.2854 Granbury .......... 817.573.6900 Ranger .............. 254.629.6729 Albany ................ 325.627.7905 Grapevine ......... 817.722.8980 Rising Star ......... 254.629.6703 Aledo ................. 817.341.5200 Hereford ............ 806.363.8200 Roby .................. 325.776.2261 Alvarado ........... 817.774.5150 Huntsville .......... 936.295.2224 San Angelo* ...... 325.659.5900 Beaumont* ....... 409.980.3912 Keller .................. 817.329.8625 Southlake .......... 817.410.2915 Boyd .................. 940.683.8760 Lubbock** ......... 806.401.8444 Stephenville* .... 254.965.5036 Bridgeport ........ 940.683.8700 Mauriceville ....... 409.745.4433 Sweetwater* .... 325.235.6600 Brock ................. 817.598.2650 Merkel ................ 325.928.1111 Trent .................. 325.862.6121 Burleson ............ 817.774.5175 Midlothian ........ 972.723.7100 Trophy Club ...... 817.329.8615 Cisco ................. 254.629.6111 Mineral Wells ..... 940.327.5400 Vidor .................. 409.769.5413 Cleburne ........... 817.774.5100 Moran ............... 325.627.7961 Waxahachie ...... 972.723.7156 Clyde ................. 325.627.7910 Newton .............. 409.379.2200 Weatherford ..... 817.598.2500 Decatur ............. 940.683.8780 New Waverly ..... 936.344.2224 Willow Park ...... 817.598.2780 Eastland ............ 254.629.6145 Odessa* ............. 432.367.8910 Fort Worth* ........ 817.410.4979 Orange ............... 409.883.3563 * Trust Office and Bank location * * Trust Office Selected Financial Data | Bank Locations :: Page 7 ABILENE REGION Abilene | Clyde | Moran | Albany | Odessa SENIOR OFFICERS ADVISORY DIRECTORS Ronald D. Butler II Chairman and CEO Marelyn Shedd President Tim Collard Executive Vice President Commercial Lending Charles E. Tennesson Executive Vice President CFO and Cashier Jesse Villarreal Executive Vice President Treasury Management Rick Waldraff Executive Vice President Senior Lender / Commercial Loans Michael Wolverton Executive Vice President Consumer Lending Ronald D. Butler II Chairman and CEO Marelyn Shedd President J. Michael Alexander President James M. Alexander & Co. Katie Alford President and CEO Community Foundation of Abilene Tucker S. Bridwell President Mansefeldt Investment Corp. Paul Cannon McMahon, Surovik, Suttle, P.C. David Copeland President Shelton Family Foundation Joe Crawford President Abilene Aero, Inc. Mike Denny President Batjer and Associates Murray Edwards Principal The Edwards Group Allan D. Frizzell Executive Vice President Enrich Oil Corporation Tim Lancaster President and CEO Hendrick Health System Kirk Massey Investments Stanley Morris, Jr. Investments Mike Parsons Partner Momentum Operating Co. Leigh Taliaferro, M.D. Physician IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $1,763,722 $653,091 $1,209,012 $24,695 1.50% Dec. 31, 2014 $1,830,088 $712,597 $1,338,576 $25,410* 1.41%* * Includes $1.9 million after-tax expense related to pension obligation. 42.62% 45.25%* ABILENE Success in our region stems in part from Abilene’s ongoing role as a regional healthcare provider, cultural center and educational hub. In addition to three private universities, a technical college and a local community college, Texas Tech Health Science Center recently announced plans for a new School of Public Health to be located in Abilene adjacent to the existing Schools of Pharmacy and Nursing. Manufacturing jobs also continue to thrive, as does nearby Dyess Air Force Base. First Financial is proud to play a vital role in the continued growth of our community. RONALD D. BUTLER II Chairman and CEO MAREYLN SHEDD President MAIN OFFICE 400 Pine St. Abilene, TX 79601 325.627.7000 48% TAYLOR, CALLAHAN & SHACKELFORD COUNTIES DEPOSIT MARKET SHARE Abilene Clyde Moran Albany Odessa LOCATIONS 400 Pine St., Abilene, TX 79601 1801 Antilley Rd., Abilene, TX 79606 4400 Buffalo Gap Rd., Abilene, TX 79606 4350 Southwest Dr., Abilene, TX 79606 920 N. Willis St., Abilene, TX 79603 3300 S. 14th St., Abilene, TX 79605 1010 N. Judge Ely Blvd., Abilene, TX 79601 701 Pine St., Abilene, TX 79601 1345 Barrow St., Abilene, TX 79605 2617 Antilley Rd., Abilene, TX 79606 1650 State Hwy. 351, Abilene, TX 79601 718 Elm St., Clyde, TX 79510 400 Ground St., Moran, TX 76464 232 N. Main St., Albany, TX 76430 2651 JBS Pkwy., Bldg. 4, Ste. F, Odessa, TX 79762 CLEBURNE REGION Cleburne | Burleson | Alvarado | Midlothian | Waxahachie TOM O’NEIL Chairman, President and CEO MAIN OFFICE 200 N Ridgway Dr. Cleburne, TX 76033 817.774.5100 SENIOR OFFICERS ADVISORY DIRECTORS Tom O’Neil Chairman, President and CEO Tom O’Neil Chairman, President and CEO Dereece Howell Executive Vice President and Cashier Alecia Bland Senior Vice President Kim Hamilton Senior Vice President Russell Phillips Senior Vice President Lisa Roye Senior Vice President Chris Schjetnan Senior Vice President Stacey Sloan Senior Vice President Albert A. Archer Consulting and Investments Ray Beavers General Manager and CEO United Cooperative Services Ronald D. Butler II First Financial Bankshares, Inc. Mark Hill Circle H Contractors, LP Tim Lyness Lyness Construction, LP Dr. Joe Martin Cleburne Eye Clinic Jack Scott Bell-Scott Insurance Group JOHNSON COUNTY DEPOSIT MARKET SHARE 20% 4% CITIES OF MIDLOTHIAN & WAXAHACHIE DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $391,228 $200,408 $355,437 $5,484 Dec. 31, 2014 $418,555 $217,576 $369,264 $6,479 1.63% 1.73% 55.84% 50.74% CLEBURNE The Chisholm Trail Parkway opened in 2014, connecting Cleburne to Fort Worth. We expect it to help fuel significant growth in the coming decade. Elsewhere in our region, Burleson, Waxahachie and Midlothian continue to experience strong home construction activity. An increase in commercial and retail growth has also been seen in those markets, as well as in Alvarado. Cleburne Burleson Alvarado Midlothian Waxahachie LOCATIONS 200 N. Ridgeway Dr., Cleburne, TX 76033 403 N. Main St., Cleburne, TX 76033 1900 SW Wilshire Blvd., Burleson, TX 76028 201 E. Hwy. 67, Alvarado, TX 76009 1490 E. Main St., Midlothian, TX 76065 101 Northgate Dr., Waxahachie, TX 75165 Bank Information :: Page 9 EASTLAND COUNTY REGION Eastland | Ranger | Rising Star | Cisco SENIOR OFFICERS ADVISORY DIRECTORS Trent B. Swearengin President and CEO David Bailey Executive Vice President Steve Simmel Senior Vice President and Cashier TRENT B. SWEARENGIN President and CEO MAIN OFFICE 201 E. Main St. Eastland, TX 76448 254.629.6100 Dale Squiers, RPh Owner Eastland Drug Company Tommy Warford Turner, Seaberry and Warford Attorneys Ronald D. Butler II Chairman Trent B. Swearengin President and CEO Doug Crawley Rancher, Real Estate Jim Farrar Attorney Jim Keffer President EBAA Iron Sales, Inc. Ronnie Ledbetter Owner Ledbetter Insurance Agency Mike T. Perry President Kinnaird, Rossander & Perry Agency, Inc. 66% EASTLAND, COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $213,992 $83,550 $190,270 $3,548 Dec. 31, 2014 $240,758 $95,975 $214,389 $3,758 1.67% 1.65% 45.14% 44.38% EASTLAND Located about halfway between Abilene and the Dallas/Fort Worth Metroplex, Eastland County continues to thrive. EBAA Iron, one of the area’s largest employers, just celebrated 50 years in business. Growth stems from the medical community, including a new dialysis center opened by Eastland Memorial Hospital. Additionally, a new airport terminal under construction will increase air traffic. Tourism, retail and government services provide stability while new construction continues along the Interstate 20 corridor. Eastland Ranger Rising Star Cisco LOCATIONS 201 E. Main St., Eastland, TX 76448 106 W. Main St., Ranger, TX 76470 206 W. College St., Rising Star, TX 76471 2107 Conrad Hilton Blvd., Cisco, TX 76437 HEREFORD REGION MIKE MAULDIN Chairman, President and CEO MAIN OFFICE 212 E. Third St. Hereford, TX 79045 806.363.8200 SENIOR OFFICERS ADVISORY DIRECTORS Mike Mauldin Chairman, President and CEO Mike Mauldin Chairman, President and CEO Tim Laws Executive Vice President and Chief Lending Officer Robert de la Cruz Senior Vice President Ronald D. Butler II First Financial Bankshares, Inc. Steve Lewis, D.V.M. Manager and Sr. Partner Hereford Veterinary Clinic Kade Matthews Ranching and Investments Sally Noyce Human Resources Manager Quality Distillers Grain Panhandle Express Craig Smith Rancher and Retired Chairman of the Board, President and CEO First Financial Bank, Hereford Jerry Stevens Owner, Stevens 5-Star Car and Truck Center Johnny E. Trotter President and CEO Livestock Investors, Ltd. 42% DEAF SMITH COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $163,522 $127,713 $138,553 $2,850 Dec. 31, 2014 $165,111 $140,600 $123,716 $2,880 1.74% 1.87% 46.84% 47.43% HEREFORD After several years of drought, the Hereford area returned to a normal pattern of rainfall in 2014. More traditional crop yields in addition to outstanding results in the cattle feeding industry combined to make 2014 a great year for High Plains agriculture. The region also now has over 100 wind turbines generating a positive economic impact. Last spring, Amarillo College opened a new $6 million facility for its Hereford campus, attracting several hundred new students. With improved agricultural revenues, unemployment below 5%, and increased sales tax revenue, we expect continued economic growth in 2015. Hereford LOCATIONS 212 E. Third St., Hereford, TX 79045 Bank Information :: Page 11 HUNTSVILLE REGION SENIOR OFFICERS ADVISORY DIRECTORS Robert Pate CEO Fred Wren President Michelle Murray Executive Vice President and Cashier ROBERT PATE CEO Chris de Milliano Operations Manager Steely Lumber Company Robert C. Ernst, Jr. Owner Ernst Jewelers Curtis Montgomery, M.D. Physician Robert Pate CEO Fred Wren President James E. Baine Investments Ronald D. Butler II First Financial Bankshares, Inc. Paul E. Cameron, Jr. Petroleum Engineer John J. Certa, Jr. Owner Collateral Protection, Inc. and Team Auto Group Casey Collum Owner Empire Truss, Ltd. Candyce F. Dixon CPA FRED WREN President MAIN OFFICE 33 SH 75 North Huntsville, TX 77320 936.295.2224 19% WALKER COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $169,758 $115,708 $139,649 $2,893 Dec. 31, 2014 $191,572 $130,400 $158,608 $3,142 1.66% 1.83% 45.87% 46.04% HUNTSVILLE Huntsville is a growing city. In the past year, we welcomed CVS and Academy Sports & Outdoors to the market. And as the economy improves and unemployment rates continue to drop in 2015, we anticipate more businesses to join them. Huntsville is also the home of Sam Houston State University, one of the fastest-growing universities in Texas, with a fall 2014 enrollment of 19,719. Huntsville New Waverly LOCATIONS 33 SH 75 North, Huntsville, TX 77320 125 SH 150, Suite B1, New Waverly, TX 77358 MINERAL WELLS REGION SENIOR OFFICERS ADVISORY DIRECTORS Kenneth A. Williamson Chairman, President and CEO Kenneth A. Williamson Chairman, President and CEO Brad Seay Executive Vice President Lending Les Mariotti Executive Vice President and Cashier Scott Petty Senior Vice President Lending KENNETH A. WILLIAMSON Chairman, President and CEO MAIN OFFICE 1900 E. Hubbard St. Mineral Wells, TX 76067 940.327.5400 Spencer Baum, D.D.S. Baum Dental Clinic Ronald D. Butler II First Financial Bankshares, Inc. George Gault Attorney Gault & Gault Terry L. Murphy President and CEO Murphy and Murphy, Inc. David Ramsey, M.D. Family Practice Center Albert Rincon Vice President of Operations Texas Packaging Company, Inc. 38% PALO PINTO COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $218,612 $119,644 $176,189 $4,410 Dec. 31, 2014 $263,285 $126,017 $216,876 $4,635 2.07% 1.88% 41.42% 39.85% MINERAL WELLS New construction projects continue to grow in Mineral Wells. 2014 saw the completion of a new tenant-occupied office building at Palo Pinto General Hospital. Mineral Wells Independent School District’s new Lamar Elementary is under construction to open for the 2015 school year, and Mineral Wells High School is building a new running track to open Spring 2015. Meanwhile at our bank, we remodeled the vault and work area for the tellers, adding two teller stations and upgrading the drive-through tubes with television monitors to improve the customer service experience and take care of our growth in new accounts. Mineral Wells LOCATIONS 1900 E. Hubbard St., Mineral Wells, TX 76067 Bank Information :: Page 13 SAN ANGELO REGION MICHAEL L. BOYD Chairman, President and CEO MAIN OFFICE 301 W. Beauregard Ave. San Angelo, TX 76903 325.659.5900 SENIOR OFFICERS ADVISORY DIRECTORS Michael L. Boyd Chairman, President and CEO Michael L. Boyd Chairman, President and CEO Jim Davidson Executive Vice President and Cashier Chuck Shore Executive Vice President Pat Cottle Senior Vice President Stephen Franco Senior Vice President Cindy George Senior Vice President Lindy Jordan Senior Vice President Wes Masters Senior Vice President Reba Priddy Senior Vice President Bill Wiedenfeld Senior Vice President Honorable Marilyn Aboussie Chief Justice, Retired Ronald D. Butler II First Financial Bankshares, Inc. W. Dan Cravy, M.D. Physician Doug Eakman Owner Pecos Street Pharmacy Steve Eustis Commercial Real Estate Ron Giddiens Investments Partner, D&G Consulting Joey Henderson Past President Porter Henderson Implement Company, Inc. David F. Lupton President Angelo Glass & Mirror Company, Inc. Mary Jane Steadman Attorney Real Estate Investment Management 19% TOM GREEN COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $483,162 $184,177 $438,214 $8,123 Dec. 31, 2014 $654,965 $204,112 $603,903 $9,638 1.77% 1.82% 39.72% 37.15% SAN ANGELO San Angelo and the surrounding region experienced steady, robust growth in 2014. The hydrocarbon industry is still an important part of the economy; however, it is not the only source of the positive economic growth of the region. By encouraging a highly diversified economic base and cultural diversity, we have also been rewarded with positive economic growth in medical supply manufacturing, renewable energy, tourism, conventions, higher education at Angelo State University and Howard College, rail freight, over-the-road transportation, the arts, and at Goodfellow Air Force Base. As a result, more positive developments are expected in 2015. San Angelo LOCATIONS 301 W. Beauregard Ave., San Angelo, TX 76903 3471 Knickerbocker Rd., San Angelo, TX 76904 3301 Sherwood Way, San Angelo, TX 76901 SOUTHEAST REGION Orange | Vidor | Mauriceville | Newton | Mid-County | Beaumont STEPHEN LEE CEO and President MAIN OFFICE 812 N. 16TH St. Orange, TX 77630 800.300.8904 ORANGE COUNTY DEPOSIT MARKET SHARE 41% 10% CITIES OF PORT ARTHUR, BEAUMONT & NEWTON DEPOSIT MARKET SHARE SENIOR OFFICERS ADVISORY DIRECTORS Stephen Lee CEO and President Annette Bonnin Senior Vice President and Cashier Cindi LaChance Senior Vice President Senior Mortgage Loan Officer Curt Leger Senior Vice President Commercial Lender Joe Love Senior Vice President Commercial Lender Joan O’Burke Senior Vice President Credit Officer Conley Todd Senior Vice President Commercial Lender Tommy Gunn Chairman of the Board Attorney at Law Stephen Lee CEO and President F. Scott Dueser First Financial Bankshares, Inc. Jim Gilliam President Bates & Company J. Bruce Hildebrand, CPA First Financial Bankshares, Inc. Paul Peveto Cloeren Inc & CFO Consulting Mike Poutra Co-Owner of Dominion Forms Walter Riedel Chief Executive Officer Nelda C. and H. J. Lutcher Stark Foundation Ron Roberts Retired Executive Vice President First Financial Bank, Southeast Region Ross Smith President Akrotex, Inc. Owner Sabine River Ford, Inc. Paul Spence CEO STI Group Jim Wimberly Attorney at Law IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $436,792 $325,683 $373,504 * * Dec. 31, 2014 $482,891 $349,604 $409,761 $7,321 1.56% * 52.23% *Orange Savings Bank, SSB was acquired effective May 31, 2013. ORANGE Southeast Texas has a storied history that has seen periods of significant growth as well as lulls in economic activity. Currently, our region is in the midst of an economic boom as local refineries, plants and shipyards operate at high capacity. Many find themselves embarking on expansion and modernization projects. In fact, capital allocation to this region is at historic highs with design, fabrication and service sectors reflecting significant growth and acting as a catalyst for our regional economy. Orange Vidor Mauriceville Newton Mid-County Beaumont LOCATIONS 812 N. 16th St., Orange, TX 77630 960 N. Main St., Vidor, TX 77662 11853 Hwy 12, Mauriceville, TX 77626 418 Rusk St., Newton, TX 75966 8535 Central Mall Dr., Port Arthur, TX 77642 (Mid-County) 3515 Dowlen Rd., Beaumont, TX 77706 Bank Information :: Page 15 SOUTHLAKE REGION Southlake | Trophy Club | Keller | Bridgeport | Boyd | Decatur | Grapevine MARK L. JONES Chairman, President and CEO MAIN OFFICE 151 W. Southlake Blvd. Southlake, TX 76092 817.410.2915 SENIOR OFFICERS ADVISORY DIRECTORS Mark L. Jones Chairman, President and CEO Mark L. Jones Chairman, President and CEO F. Mills Shallene Wise County Market President Ronald D. Butler II First Financial Bankshares, Inc. Les Mariotti Executive Vice President and Cashier Traci Bernard, BSN, RN President Texas Health Southlake Dickie W. Greenwood Senior Vice President J. Sean Shope Senior Vice President Steve Sims Senior Vice President Ryan Wall Senior Vice President William Ray Cook, Jr., CPA Cook, McDonald & Co. Jack Dortch Jack Dortch Farmers Insurance Agency K. Wayne Lee President DDFW Properties Martin Schelling Conifer Real Estate J. Gary Shelton Chain Supermarket Owner Real Estate Investor Terry Wilkinson Wyndham Properties, Ltd. WISE COUNTY DEPOSIT MARKET SHARE 19% 5% CITIES OF SOUTHLAKE TROPHY CLUB KELLER & GRAPEVINE DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $366,166 $279,370 $324,454 $4,979 Dec. 31, 2014 $401,488 $301,016 $354,520 $4,007 1.38% 1.03% 56.08% 65.04% SOUTHLAKE In 2014, Southlake continued its expansion of major retail development with completion of the 185,000-square-foot Southlake Park Village shopping center, with new tenants including REI, The Fresh Market, Michaels and more. These stores complement the existing adjacent developments in Southlake Town Center and the Central Market project, which collectively offer more than 1 million square feet of shopping. Our newly relocated Keller branch opened in the first quarter of 2014 and quickly received the Best Bank in Keller recognition. Wise County also remains poised for future growth as the Dallas/Fort Worth Metroplex expands outward. Southlake Trophy Club Keller Bridgeport Boyd Decatur Grapevine LOCATIONS 151 W. Southlake Blvd., Southlake, TX 76092 95 Trophy Club Dr., Trophy Club, TX 76262 1491 Keller Parkway, Keller, TX 76248 909 Stevens St., Bridgeport, TX 76426 609 Rock Island Ave., Boyd, TX 76023 608 W. Hale Ave., Decatur, TX 76234 1015 West NW Hwy., Grapevine, TX 76051 STEPHENVILLE REGION Stephenville | Granbury | Glen Rose | Acton SENIOR OFFICERS Ron N. Mullins Chairman, President and CEO Trent Tidwell Senior Vice President RON N. MULLINS Chairman, President and CEO MAIN OFFICE 2201 W. South Loop Stephenville, TX 76401 254.965.5036 John Power Glen Rose Market President Bart Rodgers Granbury Market President Dereece Howell Executive Vice President and Cashier Robert Lemons Executive Vice President Blayne Baley Senior Vice President Doug Dobbins Senior Vice President Donna Feller Senior Vice President Vickie Pettit Senior Vice President Cody Stone Senior Vice President ADVISORY DIRECTORS Ron N. Mullins Chairman, President and CEO Keith Brown Prime Building Components, LLC Ronald D. Butler II First Financial Bankshares, Inc. Jerry Parham Parham’s Garage & Wrecker John Terrill Attorney Michael B. Williams MW Supply, Inc. Bill Hooks Autos – Real Estate Doug Montgomery Texstar Ford John Moore Craft Associates, Inc. Ron Pack Ranching and Investments Bill Parham Boucher Morgan & Young CPAs 22% ERATH, HOOD & SOMERVELL COUNTIES DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $390,050 $253,948 $344,174 $7,138 Dec. 31, 2014 $473,310 $284,164 $422,608 $7,661 1.85% 1.82% 47.80% 48.18% STEPHENVILLE With more world-championship cowboys per capita than any other town, Stephenville is known as the “Cowboy Capital of the World.” Yet in 2014, it could be said that Stephenville was the “Higher Education Capital of the World.” Ranger College opened the doors to a new campus in Stephenville, increasing enrollment 81%. In addition, 2014 marked Tarleton State University’s third consecutive year of record-high enrollment with 11,681 students for the fall semester. Erath County continues to be Texas’ leading milk producer with approximately $140 million in production. Stephenville Granbury Glen Rose Acton LOCATIONS 2201 W. South Loop, Stephenville, TX 76401 1875 Lingleville Rd., Stephenville, TX 76401 2007 East Highway 377, Granbury, TX 76049 1600 S. Morgan St., Granbury, TX 76048 400 NE Big Bend Trail, Glen Rose, TX 76043 2915 Fall Creek Highway, Acton, TX 76049 Bank Information :: Page 17 SWEETWATER REGION Sweetwater | Roby | Trent | Merkel SENIOR OFFICERS ADVISORY DIRECTORS Kirby N. Andrews President and CEO Kirby N. Andrews President and CEO KIRBY N. ANDREWS President and CEO MAIN OFFICE 201 Elm St. Sweetwater, TX 79556 325.235.6600 Jim Davidson Executive Vice President and Cashier Rodney Foster Executive Vice President and Senior Lending Officer Debbie Anthony Senior Vice President Retail Operations Britt Stuart Senior Vice President and Roby Branch Manager Jeff Branson General Partner Williamson-Branson Real Estate Louis Brooks, Jr. Rancher Ronald D. Butler II First Financial Bankshares, Inc. Ronnie Cox Investments Jay Lawrence President MAL Enterprises, Inc. J.V. Martin Retired First Financial Bank President Larry May May & Hrbacek CPAs Thomas L. Rees, Jr. Rees, Rees & Fuller Attorneys 36% IN THOUSANDS Dec. 31, 2014 Dec. 31, 2013 NOLAN & FISHER COUNTIES DEPOSIT MARKET SHARE SWEETWATER ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO $177,482 $135,529 $160,950 $3,366 1.83% $199,756 $142,687 $180,783 $3,591 1.91% 46.45% 46.66% With a diverse and growing business community, Sweetwater, Nolan and Fisher Counties are positioned to thrive in a rapidly changing economic environment. Nolan County is not only the North American hub for wind energy, it is also home to industries such as wallboard, raw cement, radiation detector equipment, plastics and more. With the recent opening of the $45-million BNSF Sweetwater Logistics Rail Center, the entire region is investing significantly to capitalize on growth potential. Sweetwater Roby Trent Merkel LOCATIONS 201 Elm St., Sweetwater, TX 79556 123 N. Concho St., Roby, TX 79543 117 N. Main St., Trent, TX 79561 301 Edwards St., Merkel, TX 79536 WEATHERFORD REGION Weatherford | Aledo | Willow Park | Brock | Fort Worth SENIOR OFFICERS Jay Gibbs Chairman, President and CEO Jimmie Sue Lawson Senior Vice President JAY GIBBS Chairman, President and CEO MAIN OFFICE 101 N. Main St. Weatherford, TX 76086 817.596.0307 Justin Hooper Executive Vice President Les Mariotti Executive Vice President and Cashier Mike Carter Senior Vice President Zach Fullerton Senior Vice President John Good Senior Vice President Jana Haynes Senior Vice President Lori Hill Senior Vice President Mike Hopkins Senior Vice President Kent Hudson Senior Vice President ADVISORY DIRECTORS Jay Gibbs Chairman, President and CEO Stephen E. Milliken C.D. Hartnett Company Mike White, O.D. Therapeutic Optometrist Jamie Adams Senior Vice President Briggs Freeman Sotheby’s Realty Greg L. Barron President G.L. Barron Company, Inc. Ronald D. Butler II First Financial Bankshares, Inc. Dal DeWees Hirschfeld Holdings, LP Clay Hicks Oil and Gas Investments Nan Kingsley President Bluestem Studios, Inc. 23% PARKER COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2013 $420,500 $210,628 $362,483 $6,431 1.55% Dec. 31, 2014 $494,286 $233,242 $433,104 $6,663 1.56% 53.84% 53.32% WEATHERFORD Serving Parker and Tarrant counties, the Weatherford region is known for its community spirit and family-oriented lifestyle. In fact, we were recently voted as the 4th best area for families to relocate in the country. That reputation will bolster growth, with Parker County expected to double in households over the next decade, and Tarrant County projected to have 41% job growth over the same period. We are well positioned for the future as we make the capital investment to serve the growing needs of our region. Weatherford Aledo Willow Park Brock Fort Worth LOCATIONS 101 College Park Dr., Weatherford, TX 76086 1214 N. Main St., Weatherford, TX 76086 745 Adams Dr., Weatherford, TX 76086 505 FM 1187 N., Aledo, TX 76008 4100 E. I-20, Willow Park, TX 76087 1100 FM 1189, Brock, TX 76066 550 Bailey Ave., Ste. 300, Fort Worth, TX 76107 1000 Forest Park, Fort Worth, TX 76104 (Opening mid 2015) Bank Information :: Page 19 Front Row - F. Scott Dueser, Gary S. Gragg, Gary L. Webb, J. Bruce Hildebrand Back Row - Ronald D. Butler II, Luke Longhofer, Kirk W. Thaxton, Marna Yerigan, Michele P. Stevens, Brandon Harris, Monica Houston, Lawrence B. Kentz Corporate Information OFFICERS: F. Scott Dueser Chairman of the Board, President and CEO Ronald D. Butler II Executive Vice President and Chief Administrative Officer J. Bruce Hildebrand, CPA Executive Vice President and Chief Financial Officer Gary S. Gragg Executive Vice President Lending Thomas S. Limerick Executive Vice President and Chief Information Officer Gary L. Webb Executive Vice President Operations Marna Yerigan Executive Vice President Lending Brandon Harris Senior Vice President Appraisal Services Monica Houston Senior Vice President Training and Education Lawrence B. Kentz Senior Vice President and Chief Compliance Officer Luke Longhofer Senior Vice President Loan Review Officer Michele P. Stevens Senior Vice President Advertising and Marketing ANNUAL MEETING Tuesday, April 28, 2015 Abilene Civic Center 1100 N. Sixth St. Abilene, TX 79601 10:30 a.m. FOR FINANCIAL AND INVESTOR INFORMATION: J. Bruce Hildebrand Executive Vice President and Chief Financial Officer 325.627.7155 CORPORATE OFFICE TRANSFER AGENT SEND CERTIFICATES FOR TRANSFER AND ADDRESS CHANGES TO: Continental Stock Transfer & Trust Company 17 Battery Place 8th Floor New York, NY 10004 400 Pine St. Abilene, TX 79601 325.627.7155 800.588.7000 www.ffin.com CORPORATE MAILING ADDRESS P.O. Box 701 Abilene, TX 79604 COMMON STOCK LISTING The NASDAQ Global Select Market Symbol: FFIN INDEPENDENT PUBLIC AUDITORS Ernst & Young LLP Continental Stock Transfer & Trust Company 212.509.4000 ADDRESS SHAREHOLDER INQUIRIES TO: Continental Stock Transfer & Trust Company 17 Battery Place 8th Floor New York, NY 10004 CONTINENTAL STOCK TRANSFER & TRUST COMPANY WEBSITE www.continentalstock.com www.ffin.com 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 or saving 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 and Filings” on the Company’s website 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. Note: Market share data is calculated from June 30, 2014, deposit information compiled by the Federal Deposit Insurance Corporation. Front Row - Ross H. Smith, F. Scott Dueser, Steven L. Beal Back Row - Murray Edwards, David Copeland, Tim Lancaster, Tucker S. Bridwell, Kade Matthews, Johnny E. Trotter, Ron Giddiens Board Of Directors COMMITTEES: BOARD MEMBER YEAR COMMITTEE 1. Executive Committee: F. Scott Dueser, Chairman 2. Audit Committee: David Copeland, Chairman 3. Compensation Committee: Steven Beal, Chairman 4. Nominating/Corporate Governance Committee: Tucker S. Bridwell, Chairman F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Steven L. Beal Retired President and COO Concho Resources Inc. Tucker S. Bridwell, CPA* President Mansefeldt Investment Corp. David Copeland, CPA President, SIPCO, Inc. and Shelton Family Foundation Murray Edwards Principal, The Edwards Group Ron Giddiens Investments Partner, D&G Consulting Tim Lancaster President and CEO Hendrick Health System Kade Matthews Ranching and Investments Ross H. Smith President, Akrotex Inc. Owner, Sabine River Ford Inc. Johnny E. Trotter President and CEO Livestock Investors, Ltd. * Lead Director 1991 1 2010 1, 3, 4 2007 1, 4 1998 1, 2, 4 2006 1, 2, 4 2009 2013 1998 2014 2 2 3 3 2003 1, 3, 4 Corporate Information | Board Of Directors :: Page 21 Front Row - Jeff Casey, Kay Berry, Larry Williams, Catherine Moreno, David Weems Back Row - Steve West, Dennis Steckly, Clay Trumble, Stan Limerick, Mark Murray, Mike Hunter First Technology Services Main Office: Abilene 400 Pine St., Abilene, TX 79601 325.627.7195 SENIOR OFFICERS DIRECTORS Thomas S. Limerick Chairman, President and CEO Kay Berry Senior Vice President Deposit Operations Jeff Casey Senior Vice President Alternative Delivery Channels Mike Hunter Senior Vice President Credit Administration Mark Murray Senior Vice President Customer Service Dennis Steckly Senior Vice President Production Services Clay Trumble Senior Vice President Credit Administration Larry Williams Senior Vice President Infrastructure Services David Weems Vice President Controller Steve West Vice President Operations Catherine Moreno Assistant Vice President Project Management Thomas S. Limerick Chairman, President and CEO First Technology Services, Inc. Executive Vice President Operations First Financial Bankshares, Inc. Les Mariotti Executive Vice President and Cashier First Financial Bank, Southlake Region First Financial Bank, Weatherford Region First Financial Bank, Mineral Wells Region Ron Giddiens Investments Partner, D&G Consulting Tim Lancaster President and CEO Hendrick Health System Tony Wormington Retired President Jack Henry and Associates, Inc. F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Ronald D. Butler II Executive Vice President and Chief Administrative Officer First Financial Bankshares, Inc., Chairman and CEO First Financial Bank, Abilene Region J. Bruce Hildebrand Executive Vice President and Chief Financial Officer First Financial Bankshares, Inc. Gary Webb Executive Vice President Operations First Financial Bankshares, Inc. Michael L. Boyd Chairman, President and CEO First Financial Bank, San Angelo Region Jay Gibbs Chairman, President and CEO First Financial Bank, Weatherford Region Trent B. Swearengin President and CEO First Financial Bank, Eastland Region Abilene | Fort Worth | Lubbock | Odessa | Orange | San Angelo | Stephenville | Sweetwater David Byrd, Bradley D. Brown, Wayne Chowning, Barbara Hill, Richard Young, Courtney Jordan, Kirk W. Thaxton, Konrad S. Halbert, David Castleberry First Financial Trust & Asset Management Company SENIOR OFFICERS SENIOR OFFICERS (continued) First Financial Trust & Asset Management Company again delivered excellent results in 2014. Total assets under management at year-end had a book value of $2.77 billion, a 12.5 percent increase from $2.46 billion at the end of 2013. The market value of the assets totaled $3.76 billion, a gain of 11.9 percent from $3.36 billion. For the year, fee income increased 15.0 percent to $18.8 million from $16.3 million in 2013, and net earnings after tax increased 15.7 percent to $7.1 million from $6.1 million. The trust company’s investment performance remained strong. The strategic growth equity portfolio led the way with a return of 16.7 percent, while the taxable and tax-free fixed-income portfolios generated returns of 4.11 percent and 8.53 percent, respectively. In October, we were pleased to announce the opening of our eighth trust office, located in Lubbock. Courtney Jordan will lead this office, and we look forward to its growth and success. Trust Assets (in millions) $2,000 2010 $1,783 2011 $1,912 2012 $2,233 2013 $2,465 2014 $2,774 Trust Fees (in millions) $0 2010 $10.81 2011 $12.67 2012 $14.46 2013 $16.32 $18.77 2014 Trust Net Income (in millions) $0 2010 $3.254 2011 $4.176 2012 $5.183 2013 $6.142 2014 $7.109 Kirk W. Thaxton Chairman, President and CEO David Byrd Executive Vice President Manager, San Angelo David Castleberry Executive Vice President Manager, Stephenville Wayne Chowning Executive Vice President Manager, Sweetwater Konrad S. Halbert Executive Vice President Manager, Fort Worth Barbara Hill Executive Vice President Manager, Odessa Richard Young Executive Vice President Manager, Abilene Bradley D. Brown Senior Vice President Manager, Beaumont/Orange Courtney Jordan Senior Vice President Manager, Lubbock Matt Melbourne Senior Vice President Manager, Operations Christopher N. Montoya Senior Vice President Manager, Equities David B. Pitzer Senior Vice President Manager, Real Property Bill Rowe Senior Vice President Manager, Fixed Income Randy Spiva Senior Vice President Manager, Oil & Gas DIRECTORS Kirk W. Thaxton Chairman, President and CEO First Financial Trust & Asset Management Company, N.A. Sarah Campbell Portfolio Manager David Copeland, CPA President Shelton Family Foundation Ronnie Cox Investments F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. David F. Lupton President Angelo Glass & Mirror Company. Inc. Bill Parham Boucher Morgan & Young CPAs Walter G. Riedel, III President and CEO Nelda C. and H.J. Lutcher Stark Foundation ADVISORY DIRECTOR John L. Beckham Beckham Rector & Eargle LLP First Technology Services | Trust & Asset Management :: Page 23 400 Pine St., Abilene, TX 79601 | 325.627.7200 | ffin.com
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