First Financial Bankshares Annual Report 2015

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FY2015 Annual Report · First Financial Bankshares

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2 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)

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

–

$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

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

$0.13

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

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

$0.14

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

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

SENIOR OFFICERS

REGIONAL DIRECTORS

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

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

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

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%

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

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

SENIOR OFFICERS

REGIONAL DIRECTORS

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

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

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

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

2010

1, 3, 4

2007

1, 4

1998

1, 2, 4

2006

1, 2, 4

2009

2013

1998

2014

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