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Veritex2 0 1 5 A N N U A L R E P O R T OPENING DOORS TO YOUR DREAMS SINCE WE OPENED OURS. 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 shareholders and customers. Across Texas, our teams of expert bankers, mortgage lenders and wealth management professionals are here to help you realize your financial goals. MEMBER FDIC A LETTER TO OUR SHAREHOLDERS. First Financial Bankshares increased its We again outperformed our peer group of banks on several key financial earnings, received national awards and metrics. Our return on average assets was 1.61 percent compared with 0.98 completed two acquisitions in 2015. We also percent for our peers. Return on average equity was 13.60 percent versus our restructured the Company and strengthened peers’ 8.67 percent. Our net interest margin of 4.12 percent surpassed their our management team. I am very pleased 3.51 percent. And our efficiency ratio (expenses as a proportion of revenues) with the progress we made last year, and look was also much better than theirs – 47.6 percent as opposed to their 63.8 forward to our company’s continued growth and percent. improvement. At the annual convention of the American Bankers Association in November 2015, the ABA’s Community Engagement Foundation awarded First Financial Bank its Community Commitment Award for our achievements in Our balance sheet showed solid growth, with consolidated assets expanding 14.0 percent to $6.67 billion from $5.85 billion at the end of 2014. Loans grew 14.0 percent to $3.35 billion from $2.94 billion, which positively impacted our net income. Deposits increased 9.3 percent to $5.19 billion from $4.75 billion. Shareholders’ equity at year-end was $805.0 million, up 18.1 percent from $681.5 million. protecting older Americans from fraud through Lower oil and gas prices had their largest impact on our First Financial Trust & our Financial Exploitation Education program. Asset Management subsidiary, which saw its fees from the oil and gas sector We are proud of the success of this program, which drop $1.1 million from 2014. However, its total fee income grew by $486,000, has saved our customers millions of dollars by preventing or 2.6 percent, to $19.3 million. Net income after tax for the trust company was fraud before it happens. Because of the national recognition this $7.4 million compared to $7.1 million in 2014. The increase was due to solid program has received, Marelyn Shedd, President of First Financial Bank, growth in the market and book values of the assets managed. Total assets Abilene Region, was invited to speak at the AARP Roundtable Discussion under management at year-end reached a book value of $3.06 billion, a 10.3 in Washington, D.C., on November 12, 2015, and to testify before the Texas percent increase from $2.77 billion a year earlier. Senate Committee on Business and Commerce on January 26, 2016. In addition, I was invited to speak at the White House Conference on Aging held STRATEGIC ACQUISITIONS on July 13, 2015. The highlights of 2015 were our acquisitions of FBC Bancshares, Inc., based in Conroe, Texas, and 4Trust Mortgage, Inc. based in Dallas/Fort Worth. On Also last year, Bank Director magazine rated First Financial Bankshares as #2 July 31, 2015, we issued 1,755,374 shares of our common stock (valued among publicly traded banks with assets of $5 billion to $50 billion. This was at $59.6 million) to the shareholders of FBC Bancshares to purchase the the seventh consecutive year that the magazine had ranked First Financial company and its wholly owned subsidiary, First Bank, N.A., Conroe. We were as #1, #2 or #3 in that category nationwide. Moreover, no other U.S. bank in delighted to acquire First Bank because of its experienced management the category has been rated among the top three for seven years in a row. and solid growth. As of July 31, 2015, First Bank had total assets of $374.1 This type of recognition does not come easily, but has been earned by the million, total loans of $248.4 million and total deposits of $343.6 million. hard work of our outstanding First Financial team— the Board members, The acquisition of First Bank extended First Financial Bankshares’ growing officers and employees who execute our strategy every day to ensure that Texas footprint and name recognition into the cities of Conroe, Magnolia, we deliver superior service to our customers and reward our shareholders. I Montgomery, Cut and Shoot, Willis and Tomball. It also brought us another appreciate and thank them greatly, along with our stockholders, customers and branch in Huntsville, where First Financial already had a location. All of the communities whose dedication to this company certainly makes First Financial acquired properties are located north of Houston along Interstate 45, in high- what it is today. growth areas of Harris, Montgomery and Walker Counties. STRONG FINANCIAL RESULTS Net income for 2015 grew 12.1 percent to $100.4 million from $89.6 million in 2014. Basic earnings per share rose to $1.55 from $1.40. Besides being our 29th consecutive year of higher earnings, 2015 was also the first year ever in which we surpassed $100 million in net income. Net interest income, our largest source of revenue, increased 11.9 percent to $217.5 million from $194.4 million a year earlier. 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 for 2015 decreased to 4.12 percent from 4.20 percent in 2014, but it was still a very respectable result and placed us in the 85th percentile of peer banks. The provision for loan losses increased 116.9 percent to $9.7 million from $4.5 million in 2014. The upward movement in this metric last year reflected the overall growth in loans as well as rising levels of nonperforming and classified assets, including those related to the oil and gas industry. With the large drop in oil and gas prices in 2015, we are seeing continued weakness in this sector, as well as in other, related sectors. Fortunately, we have only 2.9 percent of our loan portfolio in oil- and gas-related loans. Noninterest income grew 10.2 percent to $73.4 million from $66.6 million, while noninterest expense rose 8.4 percent to $149.5 million from $137.9 million. We purchased 4Trust Mortgage, Inc. for $1.9 million in cash on June 1, 2015. 4Trust is a residential mortgage loan origination company that has been serving customers in the Dallas/Fort Worth market for 15 years. 4Trust has offices in Fort Worth, Dallas and Southlake. Having built one of the top mortgage companies in the Dallas/Fort Worth area, the 4Trust team brings to First Financial a tremendous amount of experience and expertise, along with a very loyal customer base. In 2014, 4Trust originated $168.2 million in residential mortgage loans that it subsequently sold into the secondary market. By combining 4Trust’s market share in the secondary market with our own, we believe we will be able to double the amount of residential mortgage loans we sell into the secondary market. CURRENT ACTIVITIES We presently have three new buildings under construction and several on the drawing board. In Fort Worth, we are nearing completion of a four-story building at the intersection of Forest Park Boulevard and Rosedale Street. This location just west of downtown will be convenient for our customers because it offers easy access from Texas Highway 121 and Interstate 30. We are looking forward to occupying this building in April 2016. We also have a building under construction in Odessa at 3555 Billy Hext Road that will house both our banking operations and our Odessa trust office. It will be a state-of- the-art facility with a motor bank and ATM, which our customers do not enjoy at our current location. This facility should open in June 2016. And in Cisco, we are In February 2016, Trent Swearengin was promoted to President of our building a new facility at 2006 Conrad Hilton Boulevard, which is right across the Stephenville Region after serving as President of the Eastland Division for the street from our current location. This will give us additional motor bank and lobby past four years. Trent has been with the Company since 2001, serving in a space to better serve our customers. We expect to occupy the new building in number of positions through those years. At the same time, David Bailey, the June 2016. Because many of the community banks we have acquired over the years had previously built large facilities to house numerous functions, we now senior lender in Eastland who had been with the Company for 12 years, became President of our Eastland Division. We are confident that all these elections and promotions have added depth and experience to our overall management team. find ourselves with older, much larger buildings than we need given current LOOKING AHEAD technology. Often, we find that we need less than half of the buildings’ square footage, and the buildings in any case are not conducive to providing efficient banking services. We are now selling several of these buildings at a below market price to the local municipalities that need extra space. This is a win-win situation because we are gifting a percentage of the value of the buildings. The municipalities get the square footage they need at a very reasonable cost, and we get to realize tax benefits from the gifts and construct smaller, state-of-the- art buildings that better meet our customers’ needs and are much more cost efficient to maintain. We are presently selling our Weatherford downtown location to Parker County; in March of this year, the management team and the other employees at this location will move to the newly expanded and remodeled College Park facility at 101 College Park Drive. In San Angelo, we have a contract to sell the downtown facility to the city, have demolished our large drive-in located a block away, and will be building a new state-of-the-art facility at that location on the corner of Concho Avenue and Koenigheim Street in 2017. In Orange, we have plans to sell our main location and will construct a new state-of-the-art building nearby that we should occupy in 2017. On January 1, 2016, we reorganized several of our bank regions by combining Abilene, Eastland and Sweetwater into one region, and Conroe and Huntsville into another region. We combined these regions to streamline the number of Board meetings, create stronger Boards, better utilize our leadership talent, be more efficient, and prepare for additional growth in the coming years. MANAGEMENT CHANGES On January 1, 2015, we established Fort Worth as a separate region due to its growth potential and its uniqueness compared with our other regions. Martin Noto was hired as President of the Fort Worth Region in July 2015. A longtime Fort Worth banker, Martin has 30 years’ experience in the financial industry, particularly in middle market, commercial real estate and energy lending. We made a number of other management additions and changes to strengthen our overall team in preparation for continued growth. In January 2015, Stan Limerick was elected Executive Vice President and Chief Information Officer, as well as President of our First Technology Services, Inc. subsidiary. Stan comes to us with 36 years of technology, management and financial institution experience. In May 2015, we elected Randy Roewe to the new position of Executive Vice President and Chief Risk Officer. Randy brings a tremendous amount of knowledge and experience gained from his 24-year career as a national bank examiner. In the current regulatory environment, Randy’s expertise in risk management, technology, compliance, corporate governance and banking laws and regulations will be of particular importance to our company. Upon the acquisition of 4Trust Mortgage in June 2015, we elected Troy Fore as President of the First Financial Bank Mortgage Division, and he now oversees all of First Financial’s secondary market lending operations. His expertise will be extremely valuable in the continued growth of our mortgage lending operations. Although oil and gas prices have fallen substantially, the Texas economy continues to be strong, and that means further opportunities for our company. Indeed, we believe our markets are more economically diversified and more resilient than they were during prior periods of significant decline in oil and gas prices. As a result, we believe we can continue achieving earnings growth in the coming years. We are having conversations with a number of Texas banks that are for sale or may be for sale in the near future. As we have been in the past, we are a disciplined buyer searching diligently for well-managed banks at the right price that fit our culture and will bring long-term value to our company. We greatly appreciate your business, your ownership and your continued support of this company. There is no question that we always put You First because we never forget that we work for you. Thank you. F. Scott Dueser Chairman, President and CEO THE 2016 WALTER JOHNSON AWARD JANET O’DELL We are very proud to announce that Janet O’Dell is the recipient of the Walter F. Johnson Award for 2016, the highest honor that the Bank can bestow upon a person who has contributed in great measure to the Company. Janet has been associated with First Financial for twenty-nine years. She began her banking career in 1987 as a teller with Bank of Commerce in Abilene. In 1991, she joined the loan department as a secretary and, in 1993, began her mortgage career. Janet became a mortgage loan officer in 1994 and began advancing through the ranks to her current position as Executive Vice President of Mortgage Lending in Abilene. Under her leadership, Janet’s team of mortgage professionals have consistently produced high volumes of mortgage loans for many years, resulting in hundreds of satisfied home owners and contributing greatly to the Bank. In 2015, First Financial purchased 4Trust Mortgage in Fort Worth, and Janet has In August 2015, we promoted Luke Longhofer to Executive Vice President of been a key leader in the acquisition and integration of the 4Trust group. She will Lending. He is working directly with our banking regions as loan review manager continue to work with First Financial Mortgage President, Troy Fore, to expand and member of the senior loan committee, assisting the regions with the our mortgage program across Texas. management and oversight of their loan portfolios. He plays a vital role, along with Executive Vice Presidents Gary Gragg and Marna Yerigan, in managing Janet’s knowledge and expertise make her an outstanding leader in our mortgage our growing loan portfolio. Before joining First Financial in October 2010, Luke program, where she assists multiple bank regions across the state. She is a served as a commissioned bank examiner for the Federal Deposit Insurance tireless worker, a consummate professional and a most deserving recipient of the Corporation for more than seven years. 2016 Walter F. Johnson Award. FINANCIAL HIGHLIGHTS IN THOUSANDS (except for share data) IN THOUSANDS (except for share data) FOR THE YEAR 2015 2014 % INCREASE FOR THE YEAR 2015 2014 % INCREASE NET INCOME $100,381 $89,559 12.08% AT YEAR-END Basic Earnings (PER SHARE) $1.55 $1.40 Dividends Declared $40,353 $35,233 Dividends (PER SHARE) $0.62 $0.55 10.71% 14.53% 12.73% Assets Securities Loans Deposits $6,665,070 $5,848,202 13.97% $2,734,177 $2,416,297 13.16% $3,350,593 $2,937,991 14.04% $5,190,169 $4,750,255 9.26% $6,223,804 $5,428,583 14.65% $2,689,641 $2,219,029 21.21% $3,090,538 $2,786,011 10.93% Shareholders’ Equity $804,986 $681,537 18.11% Book Value Per Share $12.20 $10.63 14.76% $4,906,819 $4,346,859 12.88% Trust Assets (Book Value) $3,059,901 $2,773,596 10.32% AVERAGES Assets Securities Loans Deposits Shareholders’ Equity $738,289 $639,744 15.40% NET INCOME GROWTH (in thousands) KEY RATIOS 2015 2014 2011 $68,369 2012 $74,225 2013 $78,868 2014 $89,559 2015 100,381 Return On Avg. Assets 1.61% 1.65% Return On Avg. Equity 13.60% 14.00% Year-End Equity/Assets 12.08% 11.65% Efficiency 47.61% 49.24% RETURN ON AVERAGE EQUITY EFFICIENCY RATIO 2011 14.44% 2012 13.85% 2013 13.75% 2014 14.00% 2015 13.60% 2011 48.37% 2012 48.14% 2013 50.19% 2014 49.24% 2015 47.61% 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) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ten-Year Compound Growth Rate $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 $6,665,070 $804,986 $100,381 $1.55 $0.62 9.32% 11.29% 8.59% 8.12% 5.28% – – $12.20 $30.17 10.61% 9.94% Adjusted for stock dividends and splits 2014 COMMON STOCK MARKET VALUE AND DIVIDEND DATA NET INTEREST MARGIN 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 2011 4.62% 2012 4.28% 2013 4.22% 2014 4.20% 2015 4.12% 2015 COMMON STOCK MARKET VALUE AND DIVIDEND DATA RETURN ON AVERAGE ASSETS QUARTER HIGH LOW CLOSE DIVIDENDS Fourth $36.51 $29.56 $30.17 Third $36.20 $29.21 $31.78 Second $35.32 $27.16 $34.64 First $30.17 $24.46 $27.64 $0.16 $0.16 $0.16 $0.14 2011 1.78% 2012 1.75% 2013 1.64% 2014 1.65% 2015 1.61% FIRST FINANCIAL BANK AND TRUST LOCATIONS Abilene* ............. 325.627.7000 Acton ................. 817.408.2854 Albany ................ 325.627.7905 Aledo ................. 817.341.5200 Alvarado ........... 817.774.5150 Beaumont* ....... 409.980.3912 Boyd .................. 940.683.8760 Bridgeport ........ 940.683.8700 Brock ................. 817.598.2650 Burleson ............ 817.774.5175 Cisco ................. 254.629.6111 Cleburne ........... 817.774.5100 Clyde ................. 325.627.7910 Creekside .......... 281.516.7835 Cut and Shoot .. 936.788.2121 Decatur ............. 940.683.8780 Eastland ............ 254.629.6145 FM 1488 .............936.273.4700 Fort Worth* ........ 817.410.4979 Glen Rose ......... 254.897.4808 Granbury .......... 817.573.6900 Grapevine ......... 817.722.8980 Hereford ............ 806.363.8200 Huntsville .......... 936.295.2224 Huntsville .......... 936.435.1308 Keller .................. 817.329.8625 Lubbock** ......... 806.401.8444 Magnolia.............936.273.4700 Mauriceville ....... 409.745.4433 Merkel ................ 325.928.1111 Midlothian ........ 972.723.7100 Mineral Wells ..... 940.327.5400 Montgomery ..... 936.597.5997 Moran ............... 325.627.7961 Newton .............. 409.379.2200 New Waverly ..... 936.344.2224 Odessa* ............. 432.367.8910 Orange................409.883.3563 Port Arthur...............409.726.8000 Ranger .....................254.629.6729 Rising Star...............254.629.6703 Roby ........................325.776.2261 San Angelo*............325.659.5900 Southlake .................817.410.2915 Stephenville*...........254.965.5036 Sweetwater* ...........325.235.6600 Tomball....................281.516.7835 Trent ........................325.862.6121 Trophy Club.............817.329.8615 Vidor.........................409.769.5413 Waxahachie ............972.723.7156 Weatherford.............817.598.2500 Westview ................936.494.2900 White Oak Terrace...936.760.1888 Willis........................936.890.3500 Willow Park .............817.598.2780 * Trust Office and Bank location * * Trust Office Selected Financial Data | Bank Locations :: Page 7 ABILENE REGION Abilene | Clyde | Moran | Albany | Odessa RONALD D. BUTLER II Chairman and CEO MARELYN SHEDD President MAIN OFFICE 400 Pine St. Abilene, TX 79601 325.627.7000 48% TAYLOR, CALLAHAN & SHACKELFORD COUNTIES DEPOSIT MARKET SHARE SENIOR OFFICERS REGIONAL DIRECTORS Ronald D. Butler II Chairman and CEO Marelyn Shedd President Tim Collard Executive Vice President Commercial Lending Janet O’Dell Executive Vice President Mortgage Lending Charles E. Tennesson Executive Vice President CFO and Chief Operations Officer 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 Shareholder, President 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 Leigh Taliaferro, M.D. Physician IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $1,830,088 $712,597 $1,338,576 $25,410* 1.41%* Dec. 31, 2015 $2,163,349 $744,300 $1,398,339 $28,949 1.47% * Includes $1.9 million after-tax expense related to pension obligation. 45.25%* 40.25% ABILENE In May 2015, the citizens of Abilene voted to pass 100% of the propositions proposed in a city bond election totaling $80.7 million. A variety of projects were proposed, including street repair throughout the city, improvements to fire and police facilities and enhancements to the local airport, civic center and zoo. In addition, voters approved a $15 million bond package for Wylie Independent School District as a result of the continued growth of student population. Finally, Dyess Air Force Base announced that it will become the home of the first B-1 Bomber Reserve Unit, which is anticipated to create approximately 261 positions, including about ½ full-time positions and ½ reserve slots. First Financial is proud to support our local community and the surrounding areas that allow us to continue to thrive. 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 (Moving to 3555 Billy Hext Rd. , Odessa, TX 79765 in June, 2016) CLEBURNE REGION Cleburne | Burleson | Alvarado | Midlothian | Waxahachie SENIOR OFFICERS REGIONAL DIRECTORS Tom O’Neil Chairman, President and CEO Tom O’Neil Chairman, President and CEO TOM O’NEIL Chairman, President and CEO MAIN OFFICE 200 N Ridgway Dr. Cleburne, TX 76033 817.774.5100 Dereece Howell Executive Vice President Chief Operations Officer Duane Thomas Executive Vice President, Senior Lender 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 Ray Beavers General Manager and CEO United Cooperative Services Ronald D. Butler II First Financial Bankshares, Inc. Robert Childress III Chidress Engineers Mark Hill Utility Construction Consultant Tim Lyness Lyness Construction, LP Dr. Joe Martin Cleburne Eye Clinic Jack Scott Bell-Scott Insurance Group JOHNSON COUNTY DEPOSIT MARKET SHARE 20% 2% CITIES OF MIDLOTHIAN & WAXAHACHIE DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $418,555 $217,576 $369,264 $6,479 Dec. 31, 2015 $401,160 $217,286 $352,744 $6,899 1.73% 1.70% 50.74% 50.67% CLEBURNE The Chisholm Trail Parkway connecting Cleburne to Fort Worth continues to fuel significant growth. The Cleburne Depot project, a 75-acre retail development at the southern terminal of the Parkway will begin in 2016. The planned project includes a minor league baseball complex and more than 300,000 square feet of retail shopping and dining. Midlothian and Waxahachie continue to experience brisk residential growth. Additionally, the Waxahachie Marketplace retail complex is opening in 2016, while a new 53-acre retail/ commercial development has been approved in Midlothian. 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 CONROE REGION Conroe | Montgomery | Magnolia | Willis | Tomball | Huntsville SENIOR OFFICERS REGIONAL DIRECTORS Sam W. Baker Chairman, President and CEO Sam W. Baker Chairman, President and CEO Lloyd Tisdale Tisdale Company SAM W. BAKER Chairman, President and CEO MAIN OFFICE 1800 W. White Oak Terrace Conroe, TX 77304 936.760.1888 9% CITIES OF CONROE, MONTGOMERY, MAGNOLIA & WILLIS DEPOSIT MARKET SHARE Billy Wood CTR Rentals (Retired) Bart Griffith Executive Vice President Senior Lender Lee Warren Executive Vice President Chief Operations Officer Andrew Cantu Executive Vice President Jed Crow Executive Vice President Chris Baughman Senior Vice President Bobby Brennan Senior Vice President Terry Doak Senior Vice President Shawn Knox Senior Vice President Anthony Olivieri Senior Vice President Donnie Buckalew Buckalew Chevrolet Dan Dominey DBD Interest F. Scott Dueser First Financial Bankshares, Inc. J. Bruce Hildebrand, CPA First Financial Bankshares, Inc. Charline Mueller Conroe Wood Products Dr. Johny Peet, Jr. Physician John Sebastian Conroe Golf Cars Jay Shands CEO and President First Bank and Trust East Texas IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2015 $393,047 $270,642 $330,930 * * * *First Bank, N.A., Conroe was acquired on July 31, 2015 CONROE The Conroe area continues to benefit from the ExxonMobil headquarters relocation. The new campus, while still under construction, is located approximately 8 miles south of Conroe just off of I-45. More than 16,000 ExxonMobil executives work there and another 24,000 are expected to be in place within two years. Conroe is now home to numerous new subdivisions, and housing starts are expected to continue in order to accommodate the need for housing inventory. Montgomery County has passed bond issues to ensure the needed infrastructure will be in place for many years to come. First Financial Bank has well located branches in place and qualified housing and mortgage lenders to take care of the influx of people moving into our communities. Montgomery County is one of the fastest growing counties in the nation, and First Financial is in the right place at the right time. In late 2016, we anticipate starting construction of a new branch east of I-45 along the new Grand Parkway, which will be one of the primary roadways to and from the ExxonMobil campus. Conroe Creekside Cut and Shoot FM 1488 Huntsville Montgomery Westview Willis LOCATIONS 1800 West White Oak Terrace, Conroe, TX 77304 2201 Westview Blvd., Conroe, TX 77304 11399 Hwy. 105 E, Conroe, TX 77303 10521 FM 1097 W., Willis, TX 77318 5424 FM. 1488, Magnolia, TX 77354 14125 Liberty St., Montgomery, TX 77318 26252 Kuykendahl, Tomball, TX 77375 1224 University Ave., Huntsville, TX 77320 EASTLAND COUNTY REGION Eastland | Ranger | Rising Star | Cisco SENIOR OFFICERS REGIONAL DIRECTORS DAVID W. BAILEY President MAIN OFFICE 201 E. Main St. Eastland, TX 76448 254.629.6100 David W. Bailey President Candi Kanady Senior Vice President Steve Simmel Senior Vice President Chief Operations Officer Dale Squiers, RPh Owner Dalsan Enterprises Ronald D. Butler II Chairman David W. Bailey President Doug Crawley Rancher, Real Estate Jim Farrar Attorney Jim Keffer President EBAA Iron Sales, Inc. Ronnie Ledbetter Owner Ledbetter Insurance Agency Mike T. Perry Insurance, Investments 67% EASTLAND, COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $240,758 $95,975 $214,389 $3,758 Dec. 31, 2015 $258,500 $102,418 $229,555 $4,093 1.65% 1.61% 44.38% 44.15% EASTLAND Eastland County provides a country lifestyle while offering diversified business services such as medical, agricultural, municipal and retail. Located midway between Abilene and Fort Worth, population growth for the County is bolstered by those looking to escape the metro areas. Interstate 20 traverses several miles through the County, offering desired locations for economic expansion. Eastland Memorial Hospital anchors a growing medical community. Education is strong with two colleges, Cisco College and Ranger College, calling the County home and providing dual credit programs for the local school districts. 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 2006 Conrad Hilton Blvd., Cisco, TX 76437 Bank Information :: Page 11 FORT WORTH REGION MARTIN J. NOTO, JR. President and CEO MAIN OFFICE 550 Bailey Av. Suite 300 Fort Worth, TX 76107 817.410.4970 SENIOR OFFICERS Martin J. Noto, Jr. President and CEO Les Mariotti Executive Vice President Chief Operations Officer Zach Fullerton Senior Vice President Jana Haynes Senior Vice President Mike Hopkins Senior Vice President Scott Lancaster Senior Vice President Kevin Shipman Senior Vice President FORT WORTH Artist rendering of new Fort Worth location. Serving the Greater Fort Worth and Tarrant County areas, the Fort Worth Region was established on January 1, 2016, and is the newest region in the First Financial family. The Fort Worth Region has a strong team of bankers and its new office at the NW corner of Forest Park Boulevard and West Rosedale Street will open in 2016. Our team in Fort Worth is working hard to build brand awareness for First Financial Bank and growing our commercial and retail business. The Fort Worth market is a strong economic engine and provides a great business environment for First Financial Bank and its customers. Fort Worth is home to more than 16,300 employers, including six on the Fortune 1000 list. Fort Worth offers a lower-than-average cost of living and world-class cultural amenities. With a population of 741,206, Fort Worth was the 16th largest U.S. city, according to the 2010 U.S. Census. The city recorded a 38 percent growth rate between 2000 and 2010. Fort Worth will continue to be one of the top job markets in the country. Fort Worth LOCATIONS 550 Bailey, Ave., Ave., Suite 300 Fort Worth, TX 76107 Moving 2nd Quarter, 2016 1000 Forest Park Blvd, Fort Worth, TX 76110 HEREFORD REGION MIKE MAULDIN Chairman, President and CEO MAIN OFFICE 212 E. Third St. Hereford, TX 79045 806.363.8200 SENIOR OFFICERS REGIONAL DIRECTORS Mike Mauldin Chairman, President and CEO Mike Mauldin Chairman, President and CEO Tim Laws Executive Vice President 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 Jerry Stevens Owner, Stevens 5-Star Car and Truck Center Johnny E. Trotter President and CEO Livestock Investors, Ltd. In Memoriam: Craig Smith Rancher and Retired Chairman of the Board, President and CEO First Financial Bank, Hereford 44% DEAF SMITH COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $165,111 $140,600 $123,716 $2,880 Dec. 31, 2015 $176,125 $136,007 $148,152 $3,056 1.87% 1.78% 47.43% 45.04% HEREFORD 2015 brought the Hereford area above average beneficial rainfall. Hereford’s sales tax revenues increased 3.13% and Deaf Smith County and Hereford’s ad valorem property tax values increased approximately 3%. Regional unemployment continues to remain favorable at below 5%. The city of Hereford issued 116 building permits and a $5,000,000 construction project is scheduled to begin in the 1st quarter of 2016. Deaf Smith County is ranked 2nd in the State of Texas in total agriculture receipts. The 2015 reduction of 14% and 19% in grain and cattle prices, respectively, have presented challenges for some agricultural producers. Currently, other business and consumer economic conditions remain favorable. We remain optimistic about the outlook for 2016. Hereford LOCATIONS 212 E. Third St., Hereford, TX 79045 Bank Information :: Page 13 HUNTSVILLE REGION SENIOR OFFICERS REGIONAL DIRECTORS Robert Pate CEO Fred Wren President Michelle Murray Executive Vice President Chief Operations Officer 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 Ronald D. Butler II First Financial Bankshares, Inc. 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 21% WALKER COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $191,572 $130,400 $158,608 $3,142 Dec. 31, 2015 $191,963 $135,116 $157,778 $3,058 1.83% 1.57% 46.04% 46.12% HUNTSVILLE Huntsville is a growing city. In the past year, we welcomed Chemex Modular LLC, Kroger’s, Hampton Suites, Petco, Buffalo Wild Wings and Ross to the market. As the community continues to grow in 2016, 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 2015 enrollment of 20,181. 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 REGIONAL 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 Chief Operations Officer 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 39% PALO PINTO COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $263,285 $126,017 $216,876 $4,635 Dec. 31, 2015 $268,950 $125,474 $224,932 $4,871 1.88% 1.88% 39.85% 39.11% MINERAL WELLS The drought is over for the City of Mineral Wells and Palo Pinto County after the rains in April and May. Palo Pinto Lake, the main source of water, was within two months of being dry even with water restrictions in place. Thinking of the area’s future water requirements, the Palo Pinto County Municipal Water Board is seeking approval in 2016 from the State of Texas to construct the new Turkey Creek dam. The project’s estimated date of completion is to be in the year 2020, which will supply water to our communities in the future. Palo Pinto General Hospital’s new office building is nearly 100% occupied and they have added an urgent care center in the building to better serve the public’s health care needs. Mineral Wells Independent School District’s new Lamar Elementary opened its doors in August 2015 to excited students, parents and faculty. Mineral Wells LOCATIONS 1900 E. Hubbard St., Mineral Wells, TX 76067 Bank Information :: Page 15 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 Michael L. Boyd Chairman, President and CEO Bill Wiedenfeld Senior Vice President Jim Davidson Executive Vice President Chief Operations Officer Chuck Shore Executive Vice President Edward Carrasco Senior 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 REGIONAL DIRECTORS Michael L. Boyd Chairman, President and CEO 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 27% TOM GREEN COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $654,965 $204,112 $603,903 $9,638 Dec. 31, 2015 $693,612 $228,742 $629,235 $11,347 1.82% 1.66% 37.15% 34.18% SAN ANGELO The City of San Angelo continued to experience another year of strong gains in 2015, fueled by the diversity of the economy. Market conditions and employment numbers have shown few negative returns as a result of the drop in West Texas Intermediate Crude prices. Capital investment and job creation remained high throughout the community’s spectrum of employers, even with the pressure of falling oil prices. The Bureau of Economic Analysis report published in late September 2015 showed that San Angelo ranked #2 in the nation for gross domestic product growth in 2014, out of 381 Metropolitan Statistical Areas nationwide. The San Angelo economy grew by 11.4%. San Angelo’s Gross Domestic Product was $4.818 billion, gaining nearly half a billion dollars in one year, more than double the growth of any of the previous five years. 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 38% 8% CITIES OF PORT ARTHUR, BEAUMONT & NEWTON DEPOSIT MARKET SHARE Ron Roberts Retired Executive Vice President First Financial Bank, Southeast Region Ross Smith President Akrotex, Inc. Owner Sabine River Ford, Inc. Jim Wimberly Attorney at Law SENIOR OFFICERS REGIONAL DIRECTORS Stephen Lee CEO and President Robert Kocot Senior Vice President Commercial Lender Tommy Gunn Chairman of the Board Attorney at Law Stephen Lee CEO and President Cindi LaChance Senior Vice President Senior Mortgage Loan Officer F. Scott Dueser First Financial Bankshares, Inc. Curt Leger Senior Vice President Commercial Lender Joe Love Senior Vice President Commercial Lender 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 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $482,891 $349,604 $409,761 $7,321 Dec. 31, 2015 $481,821 $359,657 $406,573 $7,355 1.56% 1.48% 52.23% 50.56% ORANGE Southeast Texas is a rich blend of Cajun, Creole and Texas culture with deep roots in Southern Hospitality. These cultures are permeated into the food, music and lifestyles of the people of Southeast Texas. The area has grown into one of the world’s largest refining and petrochemical centers due to recent and continued expansion of area refineries and petrochemical plants. Due to its location near multiple waterways and the Gulf of Mexico, the area experiences heavy marine transportation. The Port of Beaumont is the fourth largest port by tonnage in the United States with imports and exports of petrochemical products, timber, metals, military transports and grains. The northern section of our region is also rich in forestry and timber production. 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 17 SOUTHLAKE REGION Southlake | Trophy Club | Keller | Bridgeport | Boyd | Decatur | Grapevine SENIOR OFFICERS REGIONAL 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. MARK L. JONES Chairman, President and CEO MAIN OFFICE 151 W. Southlake Blvd. Southlake, TX 76092 817.410.2915 Les Mariotti Executive Vice President Chief Operations Officer Dickie W. Greenwood Senior Vice President J. Sean Shope Senior Vice President Steve Sims Senior Vice President Tracie Talkington Senior Vice President Ryan Wall Senior Vice President Traci Bernard, BSN, RN President Texas Health Harris Methodist Hospital, Southlake William Ray Cook, Jr., CPA Cook, McDonald & Co. Martin Schelling Conifer Real Estate J. Gary Shelton Chain Supermarket Owner Real Estate Investor Stan Stephens President Stephens Pneumatics, Inc. Tankheads, Inc. Terry Wilkinson Wyndham Properties, Ltd. WISE COUNTY DEPOSIT MARKET SHARE 18% 4% 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, 2014 $401,488 $301,016 $354,520 $4,007 Dec. 31, 2015 $401,773 $325,606 $353,257 $6,366 1.03% 1.59% 65.04% 55.38% SOUTHLAKE In 2015, Southlake and the surrounding communities continued to flourish with the addition of many new homes and further expansion in the retail market, in addition to the recently completed 23,000 square feet multipurpose center known as “The Marq.” Southlake was also named the best city in the State of Texas and the 6th best city in the nation by consumer ranking publication, WalletHub. Society Life Magazine also picked First Financial Bank Southlake as the “Top Bank in Tarrant County” for the second consecutive year. 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 TRENT B. SWEARENGIN Chairman, President and CEO MAIN OFFICE 2201 W. South Loop Stephenville, TX 76401 254.965.5036 24% ERATH, HOOD & SOMERVELL COUNTIES DEPOSIT MARKET SHARE SENIOR OFFICERS Trent B. Swearengin Chairman, President and CEO Doyle Cooper Glen Rose Market President Bart Rodgers Granbury Market President Dereece Howell Executive Vice President Chief Operations Officer 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 Trent Tidwell Senior Vice President Matt Ward Senior Vice President Regional Consumer Lending Manager REGIONAL DIRECTORS Trent B. Swearengin Chairman, President and CEO Jerry Parham Parham’s Garage & Wrecker Keith Brown Prime Building Components, LLC John Terrill Attorney Ronald D. Butler II First Financial Bankshares, Inc. Michael B. Williams M W Supply, Inc. Doug Montgomery Texstar Ford John Moore Craft Associates, Inc. Ron Pack Ranching and Investments Bill Parham Boucher Morgan & Young CPAs IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $473,310 $284,164 $422,608 $7,661 Dec. 31, 2015 $481,880 $294,996 $425,440 $7,623 1.82% 1.60% 48.18% 44.25% STEPHENVILLE Stephenville continues to thrive with the addition of the Terrill Emergency Center, a level IV trauma center offering a wide range of services, at Harris Methodist Hospital and the Texas A&M University System Board of Regents approving $162.7 million in capital improvements plan for Tarleton State University, which experienced its fourth consecutive year of record-high enrollment with 12,326 students for the fall semester. The Granbury market continued to expand as well with the opening of a 124,000 square feet Kroger Marketplace, significant progress in the renovation of Granbury High School as part of an $84.9 million bond package and the renovation and expansion of Lake Granbury Medical Center. In addition, Exelon’s Wolf Hollow Generating Station broke ground on a new low-carbon, combined-cycle turbine (CCGT) to add 1,000 additional megawatts to the existing 740-megawatt natural gas power plant. The project is estimated to create 800 new jobs over a two- year construction period. 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 19 SWEETWATER REGION Sweetwater | Roby | Trent | Merkel SENIOR OFFICERS REGIONAL 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 Operations Chief Officer 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 Donna J. Boatright CEO Rolling Plains Memorial Hospital Jeff Branson General Partner Williamson-Branson Real Estate Louis Brooks, Jr. Rancher Ronald D. Butler II First Financial Bankshares, Inc. 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 39% IN THOUSANDS Dec. 31, 2015 Dec. 31, 2014 NOLAN & FISHER COUNTIES DEPOSIT MARKET SHARE SWEETWATER ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO $199,756 $142,687 $180,783 $3,591 1.91% $188,362 $143,884 $167,416 $3,770 1.84% 46.66% 44.79% Sweetwater and the surrounding area offers a way of life like no other. Award winning schools, championship golf courses, museums, the arts, and wide open spaces punctuated by magnificent sunsets offer a little bit of something for everyone. Diversity is the key as Sweetwater, Nolan and Fisher Counties continue to build on the solid foundation of agriculture and manufacturing of sheetrock/wallboard, cement, radiation testing equipment, and more. Nolan County has expanded into the energy markets of wind and oil & gas to help power a growing Texas. Logistics has now become a major part of our growth and economic development due to Sweetwater’s convenient I-20 access and proximity to two major railroads. All of this makes this region primed for growth and continued prosperity. 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 SENIOR OFFICERS REGIONAL DIRECTORS Jay Gibbs Chairman, President and CEO Jay Gibbs Chairman, President and CEO Justin Hooper Executive Vice President Les Mariotti Executive Vice President Chief Operations Officer John Good Senior Vice President Lori Hill Senior Vice President Kent Hudson Senior Vice President Jimmie Sue Lawson Senior Vice President Jamie Adams Senior Vice President Briggs Freeman Sotheby’s Realty Ronald D. Butler II First Financial Bankshares, Inc. Nan Kingsley President Bluestem Studios, Inc. Stephen E. Milliken C.D. Hartnett Company Mike White, O.D. Therapeutic Optometrist JAY GIBBS Chairman, President and CEO MAIN OFFICE 101 College Park Dr. Weatherford, TX 76086 817.596.0307 24% PARKER COUNTY DEPOSIT MARKET SHARE IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2014 $494,286 $233,242 $433,104 $6,663 1.56% Dec. 31, 2015 $532,992 $252,719 $461,923 $7,620 1.51% 53.32% 52.23% WEATHERFORD The Weatherford Region serves Parker County, which is known as the gateway to the Metroplex and for its family oriented lifestyle. A number of new commercial and residential developments are planned for Parker County in the near future. The largest of these is Walsh Ranch. It is a 7,200-acre master planned development with 9 million square feet of commercial development and 18,000 residential lots. The development is scheduled to open in 2016. Combine this with a low 4.2% unemployment rate, and Parker County is expected to almost double in homes and jobs over the next 10 years. With seven locations strategically located in the County, we are well positioned and excited to serve the needs of our growing area. Weatherford Aledo Willow Park Brock 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 210 N. Main, Weatherford, TX 76086 Bank Information :: Page 21 Left to Right: Jana Haynes, Troy Fore, Kami Graves, Bobby Brennan, Janet O’Dell, Wes Masters, Tammie Harding, Cindi LaChance, Ryan Craig First Financial Mortgage SENIOR OFFICERS Troy Fore President Ryan Craig Executive Vice President Kami Graves Executive Vice President Tammie Harding Executive Vice President Janet O’Dell Executive Vice President Bobby Brennan Senior Vice President Jana Haynes Senior Vice President Cindi LaChance Senior Vice President Wes Masters Senior Vice President 2015 was an eventful year for First Financial Mortgage. On June 1, 2015, the Company purchased the assets of 4Trust Mortgage, Inc., a Fort Worth based mortgage company with offices in Fort Worth, Hurst (now moved to Southlake), and North Dallas. With the addition of 4Trust to our company, we also welcomed a talented management team led by Troy Fore, who is now the President of First Financial Mortgage. The combination of 4Trust and our existing First Financial Mortgage team originated $361 million in residential loans in 2015. We are looking forward to a record year in 2016. The acquisition of First Bank, Conroe is also very important to our mortgage division. The Conroe area is one of the fastest growing areas of the state and will provide future growth opportunities for First Financial Mortgage. $2,000 Left to Right: Jeff Casey, Larry Williams, Michael Cole, Kay Berry, Thomas S. Limerick, Kevin Pilgrim, Charles L. VanDeweel II, David Weems First Technology Services, Inc. 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 Project Management Office Kevin Pilgrim Senior Vice President IT Operations Charles L. VanDeweel, II Senior Vice President Software Development David Weems Senior Vice President Chief Operations Officer Larry Williams Senior Vice President Technical Architecture Thomas S. Limerick Chairman, President and CEO First Technology Services, Inc. Executive Vice President and CIO 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 F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. April Anthony Chief Executive Officer Encompass Home Health Homecare Homebase Ronald D. Butler II Executive Vice President and Chief Administrative Officer First Financial Bankshares, Inc., Chairman and CEO First Financial Bank, Abilene Region Ron Giddiens Investments Partner, D&G Consulting Tim Lancaster President and CEO Hendrick Health System J. Bruce Hildebrand Executive Vice President and Chief Financial Officer First Financial Bankshares, Inc. Tony Wormington Retired President Jack Henry and Associates, Inc. Michael L. Boyd Chairman, President and CEO First Financial Bank, San Angelo Region Michael Cole Vice President Chief Information Security Officer Jay Gibbs Chairman, President and CEO First Financial Bank, Weatherford Region Trent B. Swearengin Chairman, President and CEO First Financial Bank, Stephenville Region First Financial Mortgage | First Technology Services :: Page 23 Abilene | Beaumont | Fort Worth | Hereford | Lubbock | Odessa | San Angelo | Stephenville | Sweetwater Back: David Castleberry, Tim Hamby, Konrad S. Halbert, David Byrd, Bradley D. Brown Front: Barbara Hill, Richard Young, Kirk W. Thaxton, Wayne Chowning, Courtney Jordan First Financial Trust & Asset Management Company SENIOR OFFICERS SENIOR OFFICERS (continued) First Financial Trust & Asset Management Company again delivered solid results in 2015. Total assets under management at year-end had a book value of $3.06 billion, a 10.3 percent increase from $2.77 billion at the end of 2014. The market value of the assets totaled $3.87 billion, a gain of 2.9 percent from $3.76 billion. Our revenues were impacted by lower oil and gas prices, which resulted in lower oil and gas management fees of $1.15 million. However, for the year, total fee income increased 2.6 percent to $19.2 million from $18.8 million in 2014, and net earnings after tax increased 4.8 percent to $7.5 million from $7.1 million. We were pleased to add two new directors to our board. Jay Lawrence, former Mayor of Sweetwater and the President of MAL Enterprises, Inc., was elected to the board to replace Ronnie Cox who retired after 13 years of distinguished service to the Company. Dr. Mike Owen, an Abilene native who has been a physician in Lubbock for the past 34 years, also joined the board. We are very pleased to have these fine professionals on the board to represent the diversification of our state-wide locations. In September, we were pleased to announce the opening of our ninth trust office, located in Hereford. Tim Hamby will lead this office, and we look forward to its growth and success. $2,000 Trust Assets (in millions) 2011 $1,912 2012 2013 2014 2015 $2,233 $2,465 $2,774 $3,060 Trust Fees (in millions) 2011 2012 $0 2013 2014 $12.67 $14.46 $16.32 $18.77 $19.25 2015 Trust Net Income (in millions) 2011 2012 2013 2014 2015 $4.176 $5.183 $6.142 $7.109 $7.449 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 Matt Melbourne Executive Vice President Manager, Operations Richard Young Executive Vice President Manager, Abilene Bradley D. Brown Senior Vice President Manager, Beaumont/Orange Courtney Jordan Senior Vice President Manager, Lubbock 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 Tim Hamby Vice President Manager, Hereford 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 F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Jay Lawrence President MAL Enterprises, Inc. David F. Lupton President Angelo Glass & Mirror Company. Inc. Dr. Michael Owen Physician Bill Parham Boucher Morgan & Young CPAs Walter G. Riedel, III President and CEO Nelda C. and H.J. Lutcher Stark Foundation Back: Michele P. Stevens, Thomas S. Limerick, Brandon Harris, Monica Houston, F. Scott Dueser, Marna Yerigan, Luke Longhofer, Randy Roewe, Lawrence B. Kentz Front: Ronald D. Butler II, Gary S. Gragg, J. Bruce Hildebrand, Kirk W. Thaxton 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 Luke Longhofer Executive Vice President Loan Review Officer Randy Roewe Executive Vice President and Chief Risk Officer 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 Michele P. Stevens Senior Vice President Advertising and Marketing ANNUAL MEETING Tuesday, April 26, 2016 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, 2015, deposit information compiled by the Federal Deposit Insurance Corporation. Trust & Asset Management | Corporate Information :: Page 25 Back: Murray Edwards, April Anthony, Ron Giddiens, F. Scott Dueser, Tucker S. Bridwell, Kade Matthews, David Copeland Front: Johnny E. Trotter, Tim Lancaster, Ross H. Smith, Steven L. Beal 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. April Anthony CEO Encompass Home Health Homecare Homebase 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 2015 1 2 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 In Memoriam Sidney Craig Smith 1942-2015 On June 4, 2015, the First Financial Bankshares family lost a dear friend with the passing of Craig Smith. Craig was considered one of the leading bankers in the state. He was elected Executive Vice President of Hereford State Bank in 1978, served as President of the Bank from 1981 to 2002, and as Chairman of the Board from 1990 to 2002, during which time the Bank celebrated its 50th Anniversary in 1997. Craig served as Director of First Financial Bankshares from 1990 to 2002. He exemplified not only dedication and devotion to the financial institution he served for more than 45 years, but also to his church and community as well. Craig served on the Hereford Hospital Board from 1988 to 1992, the Hereford Economic Development Corporation and was a member of the Deaf Smith County Chamber of Commerce. He received the Distinguished Alumni College of Agricultural Sciences Award from his Alma Mater Texas Tech University and the Distinguished Service Award for Commercial Banking. Our sympathy and love are extended to his wife, Mysedia Campbell Smith, and his two sons, Brad Smith and wife, Cathy, and Sean Smith and wife, Christy. Board of Directors | Sidney Craig Smith :: Page 27 Cover Art: H.C. Zachry is an artist, businessman and community advocate in Abilene. www.zachryart.com 400 Pine St., Abilene, TX 79601 | 325.627.7200 | ffin.com
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