First Financial Bankshares
Annual Report 2020

Plain-text annual report

TEXAS STRONG For 130 Years 2020 ANNUAL REPORT TM. , 2020 A YEAR UNLIKE ANY OTHER $279,400 Local Lunches Provided COVID-19: From the beginning of the pandemic, we understood the importance of keeping our customers and employees safe while keeping our doors open and the economy TEXAS STRONG. In early March, a Pandemic Taskforce was formed. We provided onsite COVID testing for our employees, vitamin and supplement care packages, and work from home options. Over the first 45 days of the pandemic, each manager provided lunches for our employees still working in the office. These lunches were from local restaurants and customers who needed our support to get through the initial stretch of the economic shutdown. $703,450,000 Paycheck Protection Program Loan Dollars A COMPANY UNLIKE ANY OTHER Strong Financial Performance, Capital, and Liquidity In 2020, Truist analysts ranked First Financial in the top ten banks with the best relative credit loss history with the highest relative capital levels within their coverage. Our extremely high percentage of capital to total assets of 15.39% outperforms our peers and this strong capital position allows us to be a beacon of safety for depositors during trying times. We have excellent liquidity and are prepared to make new loans and advances on existing lines of credit to take care of our customers’ liquidity, working capital, and expansion needs. Safety Spanning 130 Years We have always been safe, sound, and secure, which has helped us perform through the Great Depression, the Oil Bust, and numerous economic recessions. In 2020, First Financial completed its 34th consecutive year of increased earnings. SBA PAYCHECK PROTECTION PROGRAM: In line with our Pandemic Taskforce, a Paycheck Protection Program Taskforce was formed so First Financial could be a leader in the industry. Working long hours over nights, weekends, and even holidays, each region had a designated SBA PPP Champion that responded quickly to the SBA PPP program and funded over 6,500 loans totaling more than $700 million. This not only took care of our existing customers but brought new loan and depository customers from other banks that were not as well prepared to offer the PPP program or chose not to participate at all. More than 33% of First Financial PPP loans were made to noncustomers who brought their entire relationship to First Financial because of our response and readiness to the PPP Program. Top Rated Bank Since 2009, only First Financial has been ranked one of the top seven best-performing banks in the nation by Bank Director Magazine, ranking #1 twice. The rating is determined by First Financial’s financial strength and safety based on factors such as capital, asset quality, profitability, risk management, and sound business practices. $2,642,273,000 Asset Growth Across the Company ORGANIC AND ACQUISITION ASSET GROWTH: When combining 2020 organic loan and deposit growth, SBA PPP loan originations of $703,450,000, Main Street Lending program loan originations of $141,950,000, and the acquisition of The Bank and Trust of Bryan/College Station of $631,100,000, First Financial set a record year with asset growth of more than $2.6 billion. In late 2020, First Financial was named to Newsweek’s inaugural listing of America’s Best Banks – 2021. Newsweek’s ranking recognizes the financial institutions that best serve their customers’ needs in each state. First Financial was recognized as the #1 Bank in Texas. Newsweek partnered with LendingTree, an online loan and financial services marketplace, to create the inaugural list of America’s Best Banks. The partnership assessed 2,500 FDIC-insured financial institutions on 55 separate factors, including accounts offered, fees, current and historical interest rates, account terms, consumer service features, mobile app satisfaction ratings, response to the global pandemic, and overall bank profile in order to develop best-in-class options across 19 categories. 2020 Highlights :: Page 2 2020 Highlights :: Page 3 FIRST FINANCIAL LEADING THE WAY ACROSS TEXAS AND THE NATION C I O A G M B H N Leading the Way Across Texas :: Page 4 D J E K F L A) Stephenville Empire-Tribune – Community Choice Awards Best Financial Institution, Best Mortgage Company, and Best Personal Loan Services H) Cleburne Times Review #1 Bank in Johnson County B) Social Survey – Customer Satisfaction Awards Corie O’Connor, Tammie Harding, Janet O’Dell, Ryan Craig, and Stephen Harding I) Sweetwater Reporter – Reader’s Choice Awards Best Bank, Best Mortgage Company, Best Financial Advisor - Wayne Chowning Best Bank Teller - Crystal Martinez, and Best Banker - Rodney Foster C) Weatherford Democrat – Reader’s Choice Awards Best Financial Institution, Best Mortgage Lender - Jake Marshall, #1 Bank Teller - Brenda Sommer, and #2 Bank Teller - Kristen Davis J) Society Life Magazine – “Tops in Tarrant” Southlake Region - Best Bank in Tarrant County D) Scotsman Guide – Top Loan Originators Corie O’Connor and Ryan Craig K) Living Magazine – Reader’s Choice Awards #1 Bank in Keller - Keller Branch - Southlake Region E) The Eagle – Reader’s Choice Awards Best Bank in Bryan/College Station L) San Angelo Standard-Times – Reader’s Choice Awards #1 Bank in Tom Green County F) Abilene Reporter-News – Reader’s Choice Awards Best Bank, Best Place to Work, Best Financial Planner, Best Mortgage Company M) Mineral Wells Index – Reader’s Choice Awards #1 Bank - Mineral Wells Division and #1 Banker - Matt Sudderth G) Deaf Smith County Awards – Best of Hereford Best Financial Institution, #1 Bank Teller - Darlene Bravo, #2 Bank Teller - Gabby Sanchez, and #3 Bank Teller - Hope Martinez N) Newsweek - #1 Bank in Texas First Financial Bank O) Bank Director Magazine – Top Rated Bank in the Country First Financial Bank - The last 12 years Leading the Way Across Texas :: Page 5 A LETTER TO OUR SHAREHOLDERS Confronted by a global pandemic, the shutdown of the economy, lower oil and gas prices, two hurricanes and one tornado, we stayed TEXAS STRONG during 2020: We kept our doors open, served our customers and communities, and safeguarded the health of our associates. By doing that, we achieved extraordinary organic asset growth of more than $1.9 billion (excluding the acquisition we made in January of 2020). We originated $703.5 million in Paycheck Protection Program (PPP) loans, and $142.0 million in Main Street Lending Program loans. (PPP, backed by the Small Business Administration, was set up to help businesses keep their workforces employed during the COVID crisis. Main Street Lending, established by the Federal Reserve, helped support lending to small and medium-sized businesses that were in sound financial condition before the pandemic began.) We also originated $1.2 billion in secondary- market mortgage loans for more than 4,400 families across Texas, and we grew the market value of trust assets managed to $7.5 billion. Despite the challenges we faced, we ended 2020 with record annual earnings and entered 2021 with strong momentum. Regarding this accomplishment, I want to say that I couldn’t be prouder of our team of professional bankers, who rose to the occasion to make 2020 a very successful year. We decided early on that—unlike many other banks in the state—we were not going to lock our doors; we would learn to manage through a pandemic, and we would be here to serve our customers. To keep our associates safe, we split the workforce in our larger noncustomer-facing departments in half; this enabled us to implement social distancing for the on-site group, while the other half worked from home. Acrylic sneeze guards were put at every teller window and desk to protect our customers and employees. We served lunch for 45 days to all our employees so that they didn’t have to go out into A Letter To Our Shareholders :: Page 6 the public for lunch; and we purchased these meals from local restaurants so that we could support them through the early days of the pandemic. We provided our employees with on-site flu vaccinations, COVID testing and COVID supplement and vitamin packs to take each day to boost their immune systems. We paid 100 percent of all medical costs related to COVID, and we did not count sick or quarantined days against our employees’ accrued sick leave. All our buildings were deep-cleaned nightly and fogged regularly to kill any viruses or other germs. We also masked early and did a campaign (We’re Masking for You; Will You Mask for Us?) to get customers to mask when they came into the Bank. We urged customers to do as many of their transactions as possible using our drive-throughs, treasury management products, ATMs and mobile and digital banking platforms. Additionally, we established a COVID task force that met daily and then weekly to monitor the pandemic and make decisions on how we could keep our employees and customers safe; the task force created a protocol for all associates to follow and communicated with them consistently. Ron Butler headed this committee, and he has done an excellent job of making sure that employees who contracted the virus or needed to be quarantined stayed away from the workplace until they were cleared to come back. Our goal the whole time has been to make our workplace the safest place for our employees and customers to be. I was pleased to serve on the Governor’s Strike Force to Open Texas shortly after the shutdown. I was very impressed with the Governor’s knowledge, leadership and plan to safely open the state to get the Texas economy back on track while keeping hospitalizations to a minimum. The Governor’s plan worked, and the Texas economy continues to improve. RECOGNITION In July 2020, Bank Director Magazine named First Financial Bankshares, Inc. the number three top-performing publicly traded U.S. bank in the $5–$50 billion asset category. The magazine’s annual scorecard ranks all publicly traded banks, grouped into four asset-size categories, on the basis of profitability, capital, capital adequacy and asset quality. We accepted this honor with great humility and were extremely gratified to have been the only bank rated among the top seven in the nation for the past 12 consecutive years, twice being ranked number one. In October 2020, First Financial Bank, N.A. was named to the Newsweek inaugural listing of America’s Best Banks. Newsweek’s ranking recognizes the financial institutions that best serve their customers’ needs in each state. The magazine selected First Financial as the number one bank in Texas, an honor we attribute to the efforts of our officers, employees and board members to put our customers and communities first through our TEXAS STRONG initiative. For more than 130 years, First Financial has weathered each storm it has faced and has kept the bank’s doors open so its customers could do the same. FINANCIAL RESULTS Last year marked our 34th consecutive year of increased earnings. Net income for 2020 grew 22.6 percent to $202.0 million from $164.8 million in 2019. Contributing to this increase were the acquisition of TB&T Bancshares, Inc.; fees from the PPP and Main Street Lending programs and secondary-market mortgage loans; and significant growth in interest- earning assets for the year. Diluted earnings per share for 2020 rose to $1.42 from $1.21 in 2019. With the Federal Reserve’s reduction in interest rates, our net interest margin decreased to 3.79 percent from 3.98 percent in 2019. (The net interest margin is a key profitability metric that expresses net interest income on a tax-equivalent basis as a percentage of average interest-earning assets.) Our net interest margin was a very respectable result and placed us in the 89th percentile of our peer group of banks. The provision for credit losses increased to $19.5 million from $3.0 million in 2019. This large increase was due primarily to the economic uncertainty caused by the pandemic and by the adoption of a new accounting standard for estimating allowances for credit losses. (This accounting standard, issued by the Financial Accounting Standards Board and called Current Expected Credit Losses [CECL], requires companies to calculate their bad debt reserves using forward-looking information. Before CECL, companies were permitted to estimate their incurred bad debt reserves using historical data.) Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.83 percent at December 31, 2020, compared with 0.61 percent at December 31, 2019. Classified loans totaled $197.5 million at year-end 2020 compared with $140.7 million a year earlier. Noninterest income grew 29.1 percent to $139.9 million from $108.4 million. The growth was due primarily to large increases in the gain on sale of secondary-market mortgage loans. Noninterest expense rose 16.0 percent to $227.9 million from $196.5 million. That increase was due mainly to the acquisition; and to growth in salaries, mortgage incentives and profit sharing. We again outperformed our peer group of banks on several key financial metrics. Our return on average assets was 1.98 percent compared to 0.71 percent for our peers. Return on average equity was 12.93 percent versus our peers’ 6.29 percent. Our efficiency ratio, which expresses expenses as a proportion of tax-equivalent revenues, was again solid last year at 45.49 percent, as opposed to our peers’ average of 61.58 percent. Expansion of our balance sheet last year reflected the acquisition of TB&T Bancshares, Inc. and outstanding organic growth. Consolidated assets increased 32.0 percent to $10.9 billion from $8.3 billion at the end of 2019. Loans grew 23.3 percent to $5.2 billion from $4.2 billion, largely because of the acquisition and the PPP loans. Deposits increased 31.4 percent to $8.7 billion from $6.6 billion. Shareholders’ equity at year- end was $1.7 billion, up 36.7 percent from $1.2 billion at year-end 2019. First Financial Trust & Asset Management again delivered solid results, which were fueled by a large growth in trust assets. Total trust assets under management at year-end reached a book value of $5.4 billion, an 11.2 percent increase from $4.9 billion at the end of 2019. The market value of the trust assets totaled $7.5 billion, up 11.3 percent from $6.8 billion at year-end 2019. Total trust fee income for 2020 grew as well—to $29.5 million from $28.4 million—but that increase amounted to only 4.0 percent because of a $1.0 million decrease in oil and gas income. The trust company’s net after-tax earnings increased 4.2 percent to $14.5 million from $13.9 million. STRATEGIC ACQUISITION On January 1, 2020, we completed the acquisition of TB&T Bancshares, Inc. and its wholly owned subsidiary, The Bank & Trust of Bryan/College Station. The purchase price originally established was based on a $30.28 per share price for our common stock and totaled $190.0 million on the day both parties agreed to the pricing. A Letter To Our Shareholders :: Page 7 the two buildings we have across the street. A state-of- the-art, 8,850-square-foot building will house all of our Huntsville employees to better serve our customers with the latest in technology. There will also be a deposit- taking ATM and five drive-through lanes with one wider lane designed for large trucks. A fourth-quarter 2021 opening is anticipated. STRATEGIC ACQUISITION (CONTINUED) In accordance with the terms of the definitive agreement, we issued to the shareholders of TB&T Bancshares 6.3 million shares of First Financial common stock with a value of $220.3 million. This higher purchase price reflected the increase in our stock price between the time of the agreement and the time of closing. In addition, under the agreement and prior to closing, TB&T Bancshares paid a special dividend to its stockholders totaling $2.0 million. As of December 31, 2019, The Bank & Trust of Bryan/College Station had total assets of $631.1 million, total loans of $455.4 million and total deposits of $551.9 million. Also in February 2021, First Financial Trust & Asset Management announced the opening of its 10th trust office, in San Antonio, to serve Bexar County and the surrounding areas. Located at 9601 McAllister Freeway, Suite 1204, the office is managed by Senior Vice President Michael Sierra. In April 2021, the Company will expand into a 52,800-square-foot newly remodeled operations center which will house our Technology, Training and Call Centers. This state-of-the-art building will provide the latest in security, safety, connectability and audio/visual capabilities while being very energy efficient. The new center will meet the needs of our growing company through the coming years. We are in the process of leasing the space formerly occupied by these departments in our corporate headquarters building at 400 Pine Street in Abilene. During 2020, we completed retrofitting our locations with LED fixtures and high-efficiency mechanical systems to reduce electrical costs and meet environmental standards. Although we added six additional buildings during the year, our energy costs went down by more than $100 thousand. MANAGEMENT CHANGES In April 2020, the Company announced the selection of James R. Gordon as Executive Vice President and Chief Financial Officer to replace J. Bruce Hildebrand upon his retirement in August 2020. James’s vast banking, accounting and public company knowledge, and his expertise and experience especially with banks having assets of more than $10 billion, will be instrumental in helping the Company navigate its way now that it has assets greater than $10 billion and is subject to additional laws and regulations. With the acquisition of this bank, which has five branches, our banking operations now include 78 locations that span an area from Hereford in the panhandle to Orange in southeast Texas. We are excited to have the TB&T team as part of the First Financial family. This well-managed, high-performing bank, in the high-growth Bryan/College Station market, has been an excellent addition to our company. TB&T has incorporated into its offerings additional products and services from First Financial (including state-of-the- art mobile banking, treasury management, secondary- market mortgage loans, trust services and a larger lending capacity), making the bank more competitive. We expect this new, 12th region to continue to grow and contribute nicely to our bottom line. REAL ESTATE ACTIVITIES In April 2020, the mortgage division of the bank announced that it had expanded into Austin with a new mortgage office located at 13215 Bee Cave Parkway, Building A, Suite 242. The office is managed by Irene Green, Senior Vice President of Mortgage Lending. In February 2021, we held the groundbreaking ceremony for a new location in Huntsville to replace A Letter To Our Shareholders :: Page 8 In May 2020, David W. Bailey was promoted to Executive Vice President and Senior Lender for the Abilene Region while still serving as CEO of the Eastland Division, and Candi Kanady was promoted to President of our Eastland Division. David holds a Bachelor of Business Administration/Finance degree from McMurry University, and Candi holds a Bachelor of Business Administration degree from Tarleton State University. Both started with the Bank right out of college in entry-level positions, were promoted through numerous positions in the Bank, and are two of the seven regional Presidents and CEOs who have excelled through our internal management training programs. In June 2020, Patricia Schulz was named Executive Vice President of Human Resources. Pat came to First Financial with more than 30 years of experience as a Chief Human Resources Officer and Consultant. She has led the Human Resources Departments for large companies and holds several professional designations, including Society for Human Resources Management Senior Certified Professional and Senior Professional of Human Resources. Her extensive background in diversity and inclusion will complement the Company’s efforts in developing a team of dedicated and professional bankers that is also more diverse. In August 2020, Will Christoferson was promoted to Executive Vice President of Marketing from Senior Vice President. Will has done an excellent job of enhancing our marketing and advertising throughout the Company while trimming costs and making his department more efficient. Before joining First Financial, Will spent a decade at a large bank specializing in consumer, small business and commercial lending, where he developed expertise in marketing and business development. He is an Abilene native and holds a Bachelor of Fine Arts degree from Abilene Christian University. In December 2020, Shelley Dacus added the title of CEO to her existing title of President of our Kingwood Region. Shelley has had more than 16 years of banking experience and was part of the team at Commercial State Bank, which First Financial Bank acquired in 2018. Shelley holds a Bachelor of Business Administration/ Finance degree from Sam Houston State University; she is also a graduate of the University of Wisconsin’s Graduate School of Banking and the Texas Bankers Association’s Management Development Program. In January 2021, Nora P. Thompson was promoted to President of First Financial Bank, Bryan/College Station Region. Nora has more than 30 years’ experience in financial services and mortgage lending. Prior to its acquisition, she was a key part of the leadership team of TB&T, where she served as Executive Vice President and Senior Lender. She is a graduate of the Southwestern Graduate School of Banking at Southern Methodist University and is the fourth female to be promoted to regional President in our company. Pat Schulz Will Christoferson David Bailey Candi Kanady Nora Thompson Shelley Dacus DIVERSITY AND INCLUSION 28% | 72% EMPLOYEE DIVERSITY RACIAL MINORITIES FEMALE 72.2% MALE 27.8% 30.5% MINORITY 1,488 EMPLOYEES First Financial Bankshares embraces and promotes a culture of diversity and inclusion. We continue our efforts to attract, recruit and retain employees who bring to our company diverse backgrounds, orientations, beliefs, cultures and interests. We believe that having a diverse team strengthens our company by bringing together people with different ideas, skills and experiences, and by enabling all our customers, regardless of their race and other characteristics, to feel at home when they visit one of our locations. We are pleased that through our diversity programs, we have been able to promote our fourth female regional president, as well as elect our second female director to First Financial Bankshares’ board. We also continue to refresh and diversify our regional boards, which are made up of the movers and shakers of each of the A Letter To Our Shareholders :: Page 9 DIVERSITY AND INCLUSION (CONTINUED) communities we serve. We appreciate the participation of the fine men and women who serve on our boards; their expertise and guidance bring us many benefits. We highlight the importance of diversity and inclusion to our company on page 11, where we present our 2020 Shining Stars. This program recognizes the dedicated and professional First Financial bankers who have demonstrated consistent excellence in living our Customer Service First philosophy. They perform at the highest level, maintaining positive attitudes and a proactive approach to accomplishing our mission. Of the 15 professional bankers selected for this award, nine are women and eight are minorities, which proves that diversity efforts bring quality people to our company. We recognize and celebrate them for what they do to make this company great. BOARD OF DIRECTOR CHANGES At the January 2020 Board of Directors meeting, Vianei Lopez Braun was elected to the Board of Directors of the Company and appointed to the Fort Worth Region Board of Directors. She leads the Labor and Employment section for Decker Jones PC, a full-service law firm based in Fort Worth, and serves as Chief Development Officer for the firm. An honors graduate of Princeton University and the University of Texas School of Law, Vianei has been practicing law for more than 25 years, with previous tenures in Houston and Abilene. In her law practice, she serves large publicly traded companies as well as private employers and individual professionals and executives. She has been recognized as a Texas Monthly “Super Lawyer” in labor and employment law, and she was selected as a “Top Lawyer” in the labor and employment field by Fort Worth, 360 West, H Texas and Houstonia magazines. She has also been honored as a “Great Woman of Texas” by the Fort Worth Business Press. We are honored to have Vianei on two of our boards. LOOKING AHEAD Unquestionably, 2020 threw a great many challenges at us, but we were still able to create many opportunities for our customers, our communities, our associates and our company to move forward. Our Horst Schulze training, mission and vision statements and 21 nonnegotiables kept our entire team focused on excellence. With our acquisition of TB&T, the $1.9 billion of organic asset growth and the strength of the Texas economy, we rolled into 2021 with a great deal of momentum. Naturally, we hope the pandemic will be over soon. But even if it isn’t, we will continue pursuing our bedrock goals: provide outstanding and personalized customer service, deliver unparalleled value to our shareholders, enrich the lives of our employees, and create a positive impact on the communities we serve. We believe the outlook for First Financial Bankshares is good. We continue to improve our bottom line by growing loans and deposits, enhancing noninterest income and controlling expenses. As in the past, we are proceeding strategically on the acquisitions front. We are searching diligently to acquire, at the right price, well-managed banks that fit our culture and will bring long-term value to our company. I am pleased to say that conversations that were going on prior to the pandemic have restarted, and I think that we, along with banks all across this nation, will see continued consolidation. Our accomplishments and strong performance, especially during a trying year, did not just happen on their own, but rather came from the dedication and hard work of a very professional team made up of the board members, officers and employees whom I have the honor of working with. They went well beyond the call of duty in providing our customers and communities with exceptional service last year, and I thank each one of them. Thank you also to our stockholders, who are so loyal and supportive of our company. We never forget that we work to put You First. F. Scott Dueser Chairman, President and CEO Vianei Lopez Braun A Letter To Our Shareholders :: Page 10 THE 2020 SHINING STARS The FFIN Shining Star Program recognizes dedicated and professional bankers that have demonstrated consistent excellence in fulfilling our Customer Service First Philosophy. They perform at the highest level, doing so while maintaining positive attitudes and a proactive approach to accomplishing our mission. The First Financial Shining Stars represent our company well, honoring our long-standing reputation by acting with unmatched professionalism, a relentless work ethic, and an ongoing desire to build, improve, and refine relationships with both customers and fellow employees. We are so proud of our 2020 Shining Stars: Sabas Sanchez First Financial Bankshares Landon Hammond Abilene Region Cameron Comire Bryan/College Station Region Angie Bearden Cleburne Region Jasmine Lawrence Conroe Region Derrick Saucedo Eastland Region Dominique Caballero Hereford Region Motsy Quintero Kingwood Region Kelly Farmer San Angelo Region Sandra Martinez Southlake Region Karen Wilson Stephenville Region Patrick Fahy Sweetwater Region Eric Belmares Weatherford Region Nicole Minyard First Financial Trust Rikki Santibanez First Technology Services 2020 WALTER JOHNSON AWARD The Walter Johnson Award is the Company’s highest honor bestowed upon a person who has contributed greatly and advanced our company to new heights for customers, shareholders, and employees just as Walter Johnson did. The Award has been given only eight times in the last 15 years and is bestowed for the ninth time to Sabas Sanchez, Vice President of SBA Lending for the Company. Sabas joined the Company in 2015 in our loan documentation preparation department and progressed through the Analyst Program. In 2018, he was promoted to oversee SBA lending for the Bank. His attention to detail and work ethic prepared him for what was to come in 2020 with SBA lending. His knowledge was paramount to enable us to get out in front of the other banks and create a positive plan that he and Luke Longhofer put together to execute the Paycheck Protection Program. Facilitating a brand new government program literally overnight with new rules every day was a challenge, but it was one Sabas met head-on to pay dividends for our customers, communities, shareholders, and his fellow employees. Sabas is one of many young professionals who continue to make a difference in our company and has proven that every opportunity exists to progress their careers. When we think of Walter Johnson and TEXAS STRONG Bankers, we think of Sabas Sanchez. 2020 Shining Stars & Walter Johnson Award :: Page 11 FIRST FINANCIAL FOOTPRINT FIRST FINANCIAL BANK LOCATIONS Amarillo Abilene Dallas Fort Worth Odessa San Angelo Waco Bryan / College Station Austin Huntsville Conroe Orange San Antonio Houston First Financial Footprint :: Page 12 Abilene ........... 325.627.7200 Eastland ......... 254.629.6188 Odessa ........ 432.367.8900 Acton .............. 817.573.6900 El Campo ...... 979.543.6441 Orange ........... 409.883.3563 Albany .............. 325.627.7905 Fort Worth ..... 817.410.4979 Palacios ......... 361.972.2585 Aledo .............. 817.341.5200 Glen Rose ........ 254.897.4808 Port Arthur ..... 409.736.5951 Alvarado ......... 817.774.5150 Granbury ........ 817.573.6900 Ranger ............ 254.629.6729 *Austin ............ 512.422.1782 Grapevine ...... 817.722.8980 Rising Star ..... 254.629.6703 Beaumont ...... 409.600.6456 Hereford ......... 806.363.8200 Roby ............... 325.776.2261 Boyd ............... 940.683.8760 Huntsville ...... 936.295.2224 San Angelo .... 325.659.5900 Bryan ............ 979.260.2100 Katy-Fulshear .. 281.346.0221 Southlake ...... 817.410.2915 Bridgeport ..... 940.683.8700 Keller ............. 817.329.8625 Spring ............. 346.328.6910 Brock ............. 817.596.0307 Kingwood ...... 281.318.4600 Stephenville ... 254.965.5036 Burleson ........ 817.774.5175 Magnolia ....... 936.273.4700 Sweetwater ... 325.235.6600 Cisco .............. 254.629.6111 Mauriceville ... 409.745.3755 Tomball .......... 281.516.7835 Cleburne ........ 817.774.5100 Merkel ........... 325.928.1111 Trent .............. 325.862.6121 Clyde .............. 325.627.7910 Midlothian ..... 972.723.7100 Trophy Club .... 817.329.8615 College Station... 979.260.2100 Mineral Wells .. 940.327.5400 Vidor ............... 409.769.8478 Conroe ............ 936.760.1888 Montgomery .. 936.597.5997 Waxahachie ... 972.723.7100 Cut and Shoot .... 936.788.2121 Moran ............ 325.627.7953 Weatherford ... 817.598.2500 *Dallas .......... 972.385.8239 Newton ......... 409.224.7506 Willis ............. 936.890.3500 Decatur .......... 940.683.8780 New Waverly .. 936.439.1870 Willow Park ... 817.598.2780 *Mortgage Loan Office FIRST FINANCIAL TR UST LOCATIONS Abilene 400 Pine Street, Suite 300 325.627.7100 Beaumont 3515 Dowlen Road 409.600.6460 Bryan/College Station 1716 Briarcrest Drive, Suite 400 979.260.2134 Fort Worth 1000 Forest Park Blvd., Suite 200 817.410.4970 Houston 24080 Hwy 59 North, Suite 200 281.318.4625 Odessa 3555 Billy Hext Road 432.367.8900 San Angelo 222 S. Koenigheim St. 325.659.5987 San Antonio 9601 McAllister Freeway, Suite 1204 210.912.9662 Stephenville 2201 W. South Loop 254.918.6262 Sweetwater 201 Elm Street 325.235.6644 First Financial Locations :: Page 13 FINANCIAL HIGHLIGHTS IN THOUSANDS (except for share data) IN THOUSANDS (except for share data) FOR THE YEAR Net Income 2020 2019 % INCREASE AT YEAR-END 2020 2019 % INCREASE $202,034 $164,812 22.58% Assets $10,904,500 $8,262,227 31.98% Diluted Earnings (PER SHARE) $1.42 $1.21 17.36% Securities $4,393,029 $3,413,317 28.70% Dividends Declared $72,494 $63,135 14.82% Dividends (PER SHARE) $0.51 $0.47 8.51% KEY RATIOS Return On Avg. Assets Return On Avg. Equity Year-End Equity/Assets Efficiency 1.98% 12.93% 15.39% 45.49% 2.08% 14.37% 14.85% 48.61% Loans, HFI Deposits $5,171,033 $4,194,969 23.27% $8,675,817 $6,603,806 31.38% Shareholders’ Equity $1,678,190 $1,227,197 36.75% Book Value Per Share $11.80 $9.03 30.68% Trust Assets (Book Value) $5,397,555 $4,855,736 11.16% NET INCOME (in thousands) AVERAGES - FOR THE YEAR 2016 $104, 774 2017 $120,371 2018 $150,638 2019 $164,812 2020 $202,034 Assets Securities Loans Deposits $10,193,515 $7,939,122 28.40% $4,116,345 $3,283,398 $5,152,531 $4,074,667 25.37% 26.45% $7,981,450 $6,345,755 25.78% Shareholders’ Equity $1,562,010 $1,146,567 36.23% SELECTED FINANCIAL DATA IN THOUSANDS (except for share data) YEAR-END TOTAL ASSETS SHAREHOLDERS’ EQUITY NET INCOME DILUTED EARNINGS (PER SHARE) CASH DIVIDENDS (PER SHARE) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $4,120,531 $508,537 $68,369 $0.55 $4,502,012 $556,963 $74,225 $0.59 $5,222,208 $587,647 $78,868 $0.62 $5,848,202 $681,537 $89,559 $0.70 $6,665,070 $804,986 $100,381 $0.78 $6,809,931 $837,885 $104,774 $0.80 $7,254,715 $922,768 $120,371 $0.91 $7,731,854 $1,053,295 $150,638 $1.11 $8,262,227 $1,227,197 $164,812 $1.21 $10,904,500 $1,678,190 $202,034 $1.42 $0.24 $0.25 $0.26 $0.28 $0.31 $0.35 $0.38 $0.41 $0.47 $0.51 Ten-Year Compound Growth Rate 10.22% 12.68% 11.44% 9.95% 7.83% Adjusted for stock dividends and splits STOCK DIVIDENDS AND SPLITS 3/2 split – – 2/1 split – – – – 2/1 split – – YEAR-END BOOK VALUE (PER SHARE) YEAR-END MARKET VALUE (PER SHARE) $4.04 $4.42 $4.59 $5.32 $6.10 $6.34 $6.97 $7.77 $9.03 $8.36 $9.76 $16.53 $14.94 $15.09 $22.60 $22.53 $28.85 $35.10 $11.80 $36.17 11.31% 15.77% 2020 COMMON STOCK MARKET VALUE AND DIVIDEND DATA NET INTEREST MARGIN QUARTER HIGH LOW CLOSE DIVIDENDS Fourth Third $36.43 $27.49 $36.17 $0.13 $32.80 $26.71 $27.91 $0.13 Second $33.81 $23.44 $28.89 $0.13 First $35.94 $20.70 $26.84 $0.12 2016 4.08% 2017 4.01% 2018 3.96% 2019 3.98% 2020 3.79% RETURN ON AVERAGE EQUITY EFFICIENCY RATIO 2019 COMMON STOCK MARKET VALUE AND DIVIDEND DATA RETURN ON AVERAGE ASSETS 2016 12.36% 2017 13.63% 2018 15.37% 2019 14.37% 2020 12.93% 2016 49.22% 2017 49.26% 2018 49.72% 2019 48.61% 2020 45.49% QUARTER HIGH LOW CLOSE DIVIDENDS Fourth Third $36.45 $32.01 $35.10 $0.12 $33.97 $29.50 $33.33 $0.12 Second $31.54 $28.00 $30.79 $0.12 First $32.65 $27.13 $28.89 $0.11 2016 1.59% 2017 1.72% 2018 1.98% 2019 2.08% 2020 1.98% Financial Highlights :: Page 14 Financial Highlights :: Page 15 ABILENE REGION Abilene | Clyde | Moran | Albany | Odessa | Eastland | Ranger | Rising Star | Cisco | Sweetwater | Merkel | Trent | Roby ABILENE REGION (CONTINUED) Abilene Senior Officers Abilene Regional Directors Eastland Senior Officers Eastland Division Directors Ronald D. Butler II Chairman and CEO Marelyn Shedd President David W. Bailey Executive Vice President Senior Lender Timothy Collard Executive Vice President Commercial Lending Janet O’Dell Executive Vice President Mortgage Loans Charles E. Tennesson Executive Vice President Chief Operations Officer Dayton Borger Senior Vice President Vanessa Faz Senior Vice President Patty Fuentes Senior Vice President Jim Goldston Senior Vice President Landon Hammond Senior Vice President Evan Harris Senior Vice President Marshall Morris Senior Vice President Corie O’Connor Senior Vice President Ryan Parrish Senior Vice President Mark Pierce Senior Vice President Fernando Quintana Senior Vice President Dennis Tarrant Senior Vice President Steve Waller Senior Vice President Ronald D. Butler II Chairman and CEO Marelyn Shedd President, Abilene 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 L. Copeland President, Sipco, Inc. and 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 Geoff Haney President, CEO, Partner Cape and Son Commodity Merchandising Kirk Massey Investments Stanley Morris, Jr. Investments Tim Lancaster Former President and CEO Hendrick Health System Leigh Taliaferro, M.D. Physician IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $2,725,127 $1,052,256 $2,138,476 $53,092 Dec. 31, 2020 $3,057,624 $1,180,748 $2,398,812 $59,108 2.03% 2.02% 42.33% 40.90% Resilience and Responsibility are the two words that come to mind when describing the year 2020. In the face of a global pandemic, the Abilene Region of First Financial had a record year in many key areas, and 2020 provided new ways for each First Financial employee to be there for our customers when they needed us most. We are proud to have assisted a record number of mortgage customers in buying or refinancing their homes. In addition to our record mortgage growth, the Abilene Region stepped up to become the area’s leading Paycheck Protection Program Loan provider and mitigate our business customers’ risk by offering state-of-the-art treasury management products and services. Our commitment to our customers remains steadfast, and your First Financial Banker stands ready to keep you, your business, and your household TEXAS STRONG. At First Financial, YOU are the reason for our success. That is why we always put You First. David W. Bailey CEO, Eastland Division Candi Kanady President, Eastland Division Jay Kidwell Executive Vice President Commerical Lending Steve Simmell Senior Vice President Devin Koenig Owner Plexus Healthcare Jim Moylan, Jr. Partner MOTEC, Ltd. David W. Bailey Eastland Division CEO Marelyn Shedd Abilene Region President Jim Farrar Attorney Jim Keffer EBAA Iron Sales, Inc. MOTEC, Ltd. Sweetwater Senior Officers Sweetwater Division Directors Joseph Crouch President, Sweetwater Division Rodney Foster Executive Vice President Commercial Lending Debbie Anthony Senior Vice President, Retail Manager Thea Hernandez Senior Consumer Lender Joseph Crouch Sweetwater Division President Larry May May & Hrbacek CPAs Marelyn Shedd Abilene Region President Donna J. Boatright Healthcare and Quality Consultant Thomas L. Rees, Jr. Rees, Rees, & Fuller Attorneys Louis Brooks, Jr. Ranching Jeff Branson General Partner Williamson-Branson Real Estate Jay Lawrence President MAL Enterprises. Candi Kanady President, Eastland Division David W. Bailey CEO, Eastland Division Joseph Crouch President, Sweetwater Division Abilene Region :: Page 16 ABILENE MAIN OFFICE 400 Pine St. | Abilene, TX 79601 | 325.627.7200 EASTLAND OFFICE 201 E. Main St. | Eastland, TX 76448 | 254.629.6100 SWEETWATER OFFICE 201 Elm St. | Sweetwater, TX 79556 | 325.235.6600 Bank Information :: Page 17 BRYAN/COLLEGE STATION Bryan | College Station CLEBURNE REGION Cleburne | Burleson | Alvarado | Midlothian | Waxahachie After closing on the sale of The Bank & Trust to First Financial on January 1st, we began the process of melding into our new bank culture. Amid these changes, we found ourselves at the beginning of the COVID pandemic while preparing for the preplanned April system conversion. In the initial phase of the SBA’s Paycheck Protection Program, we were pleased to loan $69 million to business customers and prospects in Bryan and College Station. Many of our local competitors chose not to participate in this program, so our willingness to do so resulted in very appreciative customers and new business from other banks. We are so pleased that our First Financial merger supplied us with a more robust consumer lending program, and we are already benefiting from these additions. We have added to our Consumer Lending team and are now offering home equity lines of credit at very attractive terms. With the sophistication of First Financial’s systems and processes, our residential mortgage loan production has also skyrocketed. We are very excited to have a First Financial Trust office located in Bryan, led by Jeff Wind, as we have always needed a trust officer to take care of our current and future customers. Joining this top-rated, first-class banking organization in First Financial has more than set us up for continued success: for our customers, the community, and our employees. MAIN OFFICE 1716 Briarcrest Dr. Ste 400 | Bryan, TX 77802 | 979.260.2100 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $505,423 $205,714 $443,079 Dec. 31, 2020 $649,128 $227,069 $579,023 $8,497 $10,020 1.84% 1.99% 52.70% 48.57% Ivan M. Olson CEO Senior Officers Austin Elsner Chairman, President and CEO Russell Phillips Executive Vice President Commercial Lending Chris Schjetnan Executive Vice President Alecia Bland Senior Vice President Jaye Weishuhn Senior Vice President Chief Operations Officer Kim Hamilton Senior Vice President John Knight Senior Vice President John Saenz Senior Vice President Stacey Sloan Senior Vice President IN THOUSANDS ASSETS LOANS Dec. 31, 2019 $631,100 $455,400 Dec. 31, 2020 $891,563 $470,443 DEPOSITS $551,900 $665,355 *Acquisition Date of Jan. 1, 2020 Senior Officers Timothy N. Bryan Chairman Ivan M. Olson CEO Nora Thompson President Regional Board of Directors Timothy N. Bryan Chairman Ivan M. Olson CEO Brian Barrett President Kurten Farms, Ltd. R. Sid Cauthorn Westex Bancorp Bryan/College Station Region :: Page 18 Jerry E. Fox Executive Vice President Chief Operations Officer J. Cal McNeill Executive Vice President Joe Salvato Executive Vice President Austin W. Bryan Senior Vice President David Stennis Senior Vice President Melanie N. Motley Senior Vice President Robert Olivarez Senior Vice President Janet B. Prater Senior Vice President Ronnie L. Craig Thompson, Derrig, & Craig CPAs F. Scott Dueser First Financial Bankshares, Inc. Lynn Elliott Lometa Petroleum Corporation Charles A. Ellison Attorney at Law President and Founder, The Ellison Law Firm James R. Gordon First Financial Bankshares, Inc. Lawrence B. Hodges Jr. H&B Copies Inc., Copy Corner Hank McQuaide Berkshire Hathaway, Caliber Realty William L. Rayburn, MD Chief Medical Officer Baylor Scott & White Health College Station Region Regional Board of Directors Austin Elsner Chairman, President and CEO Cathy Altman Attorney Carrington Coleman, LLP Ray Beavers Retired General Manager and CEO United Cooperative Services Ronald D. Butler II First Financial Bankshares, Inc. Jack Scott Bell-Scott Insurance Group Robert Childress III Childress Engineers Mark Hill Utility Construction Consultant Tim Lyness Lyness Construction, LP As we reflect on 2020, we are grateful for our customers, employees, and communities. The history books will tell the story of the COVID pandemic, economic headwinds and tailwinds, and unprecedented political strife. At the same time, mothers and fathers will whisper to future generations how the pandemic changed the world. Many realities and lives will never be the same. We are fortunate to report that even during these unprecedented and historical times, First Financial Bank and the Cleburne Region had a tremendous year. Refined and purified like gold and silver in a fire, we learned a tremendous amount about ourselves and our communities. Resiliency and adaptability provided advantages for our organization when peers remained on the sidelines. Our mortgage business had record growth, and our team was ready to assist when our community needed us most. Our 21 nonnegotiables serve as a daily reminder of how we must act both at the workplace and in our communities. Our Credo, “We are professional bankers building relationships and serving our communities,” helps us stay the course and reminds us why we are here: to put You First. Austin Elsner Chairman, President and CEO Cleburne Region :: Page 19 CONROE REGION FORT WORTH REGION Kirby Cason President, Huntsville Division 2020 handed us unprecedented challenges with the COVID pandemic. These challenges resulted in widespread unemployment, an uncertain economic outlook, and the need to distribute government stimulus to businesses and households. While many banks closed their lobbies and refused to participate in the government Paycheck Protection Program, I am proud to say that First Financial Bank stood firm on the front lines. We kept our lobbies open and available to everyone, and we were one of the largest producers of Paycheck Protection Loans in Texas. The Conroe Region alone met our customers’ needs by growing net loans in excess of $40 million. With our branches open for business and our lenders available to all, our regional deposits surged over $125 million. This growth also accounted for a record increase of 1,411 net new accounts. Our region also produced a record number of new mortgage loans, helping customers in Montgomery and Walker counties live their dreams of homeownership in a time of extremely low interest rates. We look forward to 2021 and another great year of growth and earnings by putting You First and staying TEXAS STRONG! MAIN OFFICE 1800 W. White Oak Terrace | Conroe, TX 77304 | 936.760.1888 HUNTSVILLE OFFICE 33 SH 75 North | Huntsville, TX 77320 | 936.295.2224 Regional Board of Directors IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $652,666 $501,385 $529,660 Dec. 31, 2020 $795,138 $541,651 $653,905 $12,150 $14,601 1.86% 1.96% 55.27% 49.88% Senior Officers Sam W. Baker Chairman, President and CEO Kirby Cason President, Huntsville Division G. Bart Griffith Executive Vice President Lee Warren Executive Vice President Chief Operations Officer Michelle Murray Executive Vice President Treasury Management Chris Baughman Executive Vice President Guy Barker Senior Vice President Bobby Brennan Senior Vice President Mortgage Lending Terry Doak Senior Vice President Candy Emmerich Senior Vice President Carissa Parker Senior Vice President Cody Sundbeck Senior Vice President Kyle Whisenhunt Senior Vice President Regional Board of Directors Sam W. Baker Chairman, President and CEO Candyce F. Dixon CPA James R. Gordon First Financial Bankshares, Inc. Randy Roan Commercial Construction Kirby Cason President, Huntsville Division Donnie Buckalew Buckalew Chevrolet John J. Certa, Jr. Owner Team Auto Group Chris deMilliano Operations Manager Steely Lumber Company Conroe Region :: Page 20 Dan Dominey DBD Interests Lloyd Tisdale Investments Curtis Montgomery, MD Physician Robert Pate Retired President - Huntsville John Sebastian Conroe Golf Cars F. Scott Dueser First Financial Bankshares, Inc. Johnny Peet Jr., M.D. Physician Robert C. Ernst Jr. Owner Ernst Jewelers IN THOUSANDS ASSETS LOANS Dec. 31, 2019 $175,789 $164,706 DEPOSITS $73,299 Dec. 31, 2020 $219,495 $209,733 $84,960 NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO $1,369 $2,561 2.20% 3.54% 66.05% 49.88% Senior Officers Marcus Morris President and CEO Carley Dyck Senior Vice President Chief Operations Officer Murray Edwards Chairman of the Board Principal, The Edwards Group Marcus Morris President and CEO Larry Anfin Past CEO Coors Distributing of Fort Worth Vianei Lopez Braun Chief Development Officer Decker Jones, P.C. Hesper Derrick Senior Vice President Pamela Terry Senior Vice President Smith A. Brownlie III CPA and Co-Founder Brownlie & Braden Ronald D. Butler II First Financial Bankshares, Inc. Mary Lee Cruz Founding Partner E Source, Inc. Nancy Jones Past President and CEO North Texas Community Foundation Stephen Kimmel Chief Financial Officer Cook Children’s Health Care System Matt Morris Area President HUB Fort Worth/Gus Bates Insurance Paul Poston President Wellington Insurance 2020 offered every emotion in the book. We experienced the highs associated with growing the First Financial Bank brand in Fort Worth, but we also shared the lows with our customers and teammates throughout the year. Over the course of the year, the Fort Worth team processed millions of dollars in PPP loans, assisted in record mortgage production, expanded the Company’s footprint, and most importantly, was there to provide support for each customer. I am so proud of the grit and resilience of our team. There were times where we were knocked down to bare bones just like many of our customers due to quarantines, ill family members, and all the other curve balls life could throw, but our team was committed to the standard we set: Excellence. Even though excellence took many different shapes in 2020, our staff consistently did whatever it took to take care of our customers, shareholders, and each other. I could not be any prouder of the work they did and what we accomplished together. Marcus Morris President and CEO MAIN OFFICE 1000 Forest Park Blvd | Fort Worth, TX 76110 | 817.410.4979 Fort Worth Region :: Page 21 HEREFORD REGION 2020 was truly a year unlike any other. The Hereford Region and our community were not immune to the COVID pandemic, but I am proud of how we came together as a result. While many local banks locked their doors, the Hereford team set a standard of safety to keep ours open and allow our customers access to their accounts and to see a friendly face if they needed to. Each Hereford employee rose above and beyond when our customers needed us, and true to our nonnegotiables, stepped out of their regular job duties to assist one another. We’ve always considered our customers a part of our family, and 2020 proved why that is so important. The Hereford Region closed more than $14.9 million in forgivable government loans through the SBA’s Paycheck Protection Program that helped keep our customers and community open during the pandemic’s peak. These opportunities helped us develop new relationships with customers and prospects whose financial institutions were not participating in the program. The Region realized significant gains in our assets, loans, and deposits over the prior year. We are blessed to have a great board of directors, staff, and customers, and I am truly proud of our team’s efforts to put You First and keep TEXAS STRONG. Robert de la Cruz Chairman, President and CEO MAIN OFFICE 212 E. Third St. | Hereford, TX 79045 | 806.363.8200 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $229,995 $150,512 $192,774 Dec. 31, 2020 $254,633 $152,815 $217,936 $4,499 $4,454 2.04% 1.69% 44.71% 34.32% Senior Officers Robert de la Cruz Chairman, President and CEO Tim Laws Executive Vice President Senior Lending Officer Regional Board of Directors Robert de la Cruz Chairman, President and CEO Ronald D. Butler II First Financial Bankshares, Inc. Steve Lewis, D.V.M. Manager and Senior Partner Hereford Veterinary Clinic Kade Matthews Ranching and Investments Mike Mauldin Director of Excellence in Banking Rawls College of Business Texas Tech University Hereford Region :: Page 22 Carley Dyck Senior Vice President Chief Operations Officer Bobby Fite Senior Vice President Sally Noyce Human Resources Manager Panhandle Express, LLC Jerry Stevens Owner, Stevens 5-Star Car and Truck Center Johnny E. Trotter President and CEO Livestock Investors, Ltd. KINGWOOD REGION Kingwood | El Campo | Fulshear | Palacios IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $437,057 $388,185 $366,338 Dec. 31, 2020 $540,087 $441,891 $459,388 $7,967 $9,789 1.90% 1.92% 48.38% 43.29% Nancy Powell Senior Vice President Angela Leviner President The Forest Collection, Inc. Rebekah Shipman President & CEO Reservoir Data Systems Senior Officers Shelley Dacus President and CEO James Alexander Executive Vice President Jeff Fuechec Executive Vice President El Campo Market President Lee Warren Executive Vice President Chief Operations Officer Regional Board of Directors Robert C. Nickles Jr. Principal, Alegacy Group Chairman of the Board Shelley Dacus President and CEO Kingwood Region Sam Baker Chairman, President and CEO Conroe Region F. Scott Dueser First Financial Bankshares, Inc. Doug Faver Executive Vice President Ken Johnson Executive Vice President Brian Bonner Senior Vice President Brandon Zabodyn Senior Vice President Michael Gonzalez Principal The Gonzalez Group James R. Gordon First Financial Bankshares, Inc. Kenny Isbell President Apache Oil Company Teamwork, accessibility, and diligence with a focused passion for our customers and communities led to tremendous success in 2020. Life-long relationships have been cemented and new ones formed from the simple action of safely keeping our doors open and answering phone calls and text messages during a time of need. Our team is nimble, resilient, and cohesive, moving forward with a “can-do” attitude every day throughout every part of our region. These times taught us that our employees are strong, resilient, and creative. We have all learned to do things faster, with fewer resources. We have learned to make decisions quickly. Most of all, we have had customers and employees demonstrating grace. We’ve collectively pulled together, showing respect, loyalty, gratitude, and positive energy during a global pandemic by living out our core values, maintaining our culture, and putting You First. Shelley Dacus President and CEO MAIN OFFICE 24080 Hwy 59 N. Suite 250 | Kingwood, TX 77339 | 281.318.4600 Kingwood Region :: Page 23 SAN ANGELO REGION SOUTHEAST TEXAS REGION Orange | Vidor | Mauriceville | Newton | Port Arthur | Beaumont In 2020, San Angelo faced its share of unique opportunities, and our dedicated team of professional bankers met these opportunities head-on and achieved record results! As the country began to shut down, we all came together and kept our doors open. We led the San Angelo market in both the number of SBA PPP loans made and dollars funded. We invested in new technology that allowed us to expand our mobile and online presence. Our mortgage team recorded a record year of production, and the Region grew net income by more than 20%. The San Angelo Region achieved all this due to the tireless effort put forth by our dedicated team. They dedicated and committed their time and effort so that we could safely keep our doors open to truly put You First! Because together we are TEXAS STRONG! Chris Evatt Chairman, President and CEO MAIN OFFICE 222 S. Koenigheim | San Angelo, TX 76903 | 325.659.5900 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $856,167 $204,222 $751,992 Dec. 31, 2020 $958,463 $240,673 $851,936 $14,906 $18,447 1.94% 1.98% 36.93% 33.03% Senior Officers Chris Evatt Chairman, President and CEO Cindy George Executive Vice President Chief Operations Officer Lindy Jordan Executive Vice President Senior Lending Officer Edward Carrasco Senior Vice President Wes Masters Senior Vice President Spencer Murphy Senior Vice President Reba Priddy Senior Vice President Luke Uherik Senior Vice President Regional Board of Directors Chris Evatt Chairman, President and CEO Ronald D. Butler II First Financial Bankshares, Inc. Hon. Marilyn Aboussie Chief Justice, Retired Steve Eustis Commercial Real Estate San Angelo Region :: Page 24 David F. Lupton President Angelo Glass & Mirror Company, Inc. Reagon Noble, D.D.S., M.S. Noble McClintock Orthodontics Carlos Rodriguez Attorney Webb, Stokes and Sparks Mary Jane Steadman Attorney, Real Estate Investment Management IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $642,880 $439,670 $540,196 Dec. 31, 2020 $845,668 $543,626 $728,210 $12,186 $16,168 1.93% 2.15% 49.18% 40.18% Senior Officers Stephen Lee President and CEO Joe Love Executive Vice President Commercial Lender Blaine Caillier Mid County Market President Commercial Lender Regional Board of Directors Stephen Lee President and CEO Ronald D. Butler II First Financial Bankshares, Inc. Dr. Ray Callas Managing Partner Anesthesia Associates, PLLC Len Forey Managing Partner Higginbotham Insurance Kim Dickerson Senior Vice President Chief Operations Officer Robert Kocot Beaumont Market President Commercial Lender Cindi LaChance Senior Vice President Mortgage Loan Officer Jim Gilliam Partner and Chairman, The HT Group Owner and CEO, Bates & Co. Chad Mason Vice President Mason Construction Michael Poutra Retired Owner Dominion Forms Curt Leger Senior Vice President Commercial Lender Lani White Senior Vice President Consumer Lender Dayna Simmons Owner Team Dayna Simmons Real Estate Kevin Williams President, Cypress Bayou Industrial Owner, American Industrial Minerals, Inc. Jim Wimberley Owner Law Offices of Jim Wimberley Our Southeast Texas Region was put to the test in 2020 with unprecedented times that included a global pandemic and impact from two major hurricanes. Despite these unique situations, our regional team remained focused on meeting the needs of our customers and communities while highlighting the difference between other banks and the committed, professional bankers at First Financial. As other financial institutions in the area stepped back and shut down, we stepped forward, delivering more than $116 million in needed PPP funds to regional small businesses. We refused to let service challenges impede our commitment to keeping our doors open and serving our customers. Our mortgage division saw record growth for the Region, often putting in long hours over nights and weekends to ensure our customers’ needs were met. As hurricanes Laura and Delta made landfall in swift succession, our team made decisions quickly to ensure our employee’s safety and everyone, customer or not, in Southeast Texas had access to their bank, their bankers, and their accounts. As we often try to do, we were the last bank to close when the storms began and the first to open when the storms subsided. The dedication of our bank family resulted in another year of significant growth and outstanding financial results for our region. Stephen Lee President and CEO MAIN OFFICE 912 N. 16th St | Orange, TX 77630 | 409.883.3563 Southeast Texas Region :: Page 25 SOUTHLAKE REGION Southlake | Trophy Club | Keller | Bridgeport | Boyd | Decatur | Grapevine STEPHENVILLE REGION Stephenville | Granbury | Glen Rose | Acton 2020 brought numerous opportunities to the Southlake Region’s local markets, allowing a partnership to be forged between our team and our customers. This partnership allowed us to provide the ultimate customer service experience while building new relationships with record-setting new deposit account growth and a substantial increase in loan activity. We are proud that several branches were voted “The Best Bank” in their market, including the readers of Society Life Magazine naming First Financial Bank “The Best Bank in Tarrant County” for the seventh consecutive year. The Southlake region is in the North Central Texas market, one of the most vibrant in the country. The population in North Texas is growing by almost 21,000 people per month, including multiple fortune 500 corporate relocations. Charles Schwab (#401) and McKesson (#14) joined dozens of others located within a short distance of our branches. Corporate relocations bring thousands of people who need homes, cars, dentists, doctors, and a safe and secure bank. We are proud to represent First Financial Bank’s “Customer Service First” culture to all our new friends and look forward to adding new relationships in 2021. Mark L. Jones Chairman, President and CEO MAIN OFFICE 151 W. Southlake Blvd. | Southlake, TX 76092 | 817.410.2915 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $574,062 $418,873 $502,443 Dec. 31, 2020 $723,366 $498,244 $640,663 $11,142 $13,008 2.02% 2.04% 49.99% 46.36% Travis Parker Senior Vice President Ryan Sonntag Senior Vice President Wade Spain Senior Vice President Tracie Talkington Senior Vice President Senior Officers Mark L. Jones Chairman, President and CEO F. Mills Shallene Market President, Wise County J. Sean Shope Market President, Trophy Club Regional Board of Directors Mark L. Jones Chairman, President and CEO Ronald D. Butler II First Financial Bankshares, Inc. Traci Bernard President Texas Health Southlake J. Bruce Hildebrand Retired First Financial Bankshares, Inc. Southlake Region :: Page 26 Tom Pulley Executive Vice President Ryan Wall Executive Vice President Carley Dyck Senior Vice President Chief Operations Officer Isbet Najera Senior Vice President William Ray Cook, Jr., CPA Cook, McDonald & Company Martin W. Schelling Conifer Real Estate Stan Stephens President Stephens Pneumatics Inc. Terry Wilkinson Wyndham Properties, Ltd. IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $856,235 $416,815 $717,752 Dec. 31, 2020 $1,036,969 $417,584 $876,956 $18,505 $20,719 2.21% 2.15% 44.31% 40.71% Doug Dobbins Senior Vice President Matthew Ward Senior Vice President David Ramsey, M.D. Family Practice Center Michael B. Williams M W Supply, Inc. West Jones Ranching and Investments Senior Officers Trent Swearengin Chairman, President and CEO Robert Kraus Glen Rose Market President Bart Rodgers Granbury Market President Regional Board of Directors Trent Swearengin Chairman, President and CEO Keith Brown Prime Building Components, LLC Ronald D. Butler II First Financial Bankshares, Inc. George Gault Attorney Walter Hardin III Real Estate Investments Vickie Pettit Executive Vice President Chief Operations Officer Trent Tidwell Executive Vice President Blayne Baley Senior Vice President Wendell Hollingsworth Industry and Economic Development Doug Montgomery Texstar Ford Lincoln, Inc., and Texstar Kubota, Inc. Terry L. Murphy Murphy and Murphy, Inc. Ron Pack Ranching and Investments While this past year provided new and significant opportunities underscored by a global pandemic, I am grateful for our dedicated team of professional bankers and directors who epitomized commitment in 2020. Our regional team was committed to serving lobby customers by keeping our doors open with a safe environment where business could be transacted daily. Tireless hours were spent processing Paycheck Protection Program loans for hundreds of local employers. Our commitment to our communities was to preserve as many local jobs as possible. As mortgage interest rates hit record lows, our mortgage teams also spent countless hours processing purchase and refinance loans, exhibiting a commitment to fulfilling dreams of homeownership. Relationships remain a priority as we strive to serve customers with excellence while building value for shareholders. We were honored to be recognized in many of our markets by our local customers. Thank you to our loyal customers for entrusting us with your business. Our commitment continues to be You First. Trent Swearengin Chairman, President and CEO MAIN OFFICE 2201 W. South Loop | Stephenville, TX 76401 | 254.965.5036 Stephenville Region :: Page 27 WEATHERFORD REGION Weatherford | Aledo | Willow Park | Brock | Mineral Wells 2020 was truly a year we have never seen before, and I am proud of the team’s efforts to answer the call for our communities, customers, and future customers. Our Parker County Team stepped up and worked tirelessly to ensure that our customers were supported through all the unique opportunities that they faced. This was evident in the endless nights and weekends spent working on PPP loans to ensure that our customers could get the help they needed at the onset of this pandemic. However, it did not stop there. Our team rallied to keep our branches open in a safe environment and remained ready and willing to assist our customers with their banking needs. The spirit that I saw in our team this last year exemplified our TEXAS STRONG attitude and is why this continues to be an incredible bank and a great place to work. All the work put in by our team resulted in a robust 2020 where we saw incredible growth in both loans and deposits. Parker County is growing, and we are committed to growing with it to meet and exceed our customers’ needs in 2021 and beyond. Justin B. Hooper Chairman, President and CEO First Financial Mortgage First Financial Mortgage had a record-setting production year in 2020. Driven by historically low interest rates and a strong Texas housing market, we exceeded $1.2 billion in total originations. This represents a 118% increase from 2019. Our team of mortgage professionals worked tirelessly during the pandemic to serve more than 4,400 families and individuals across the state with great care. The Texas housing market continues to perform exceptionally strong in the wake of the pandemic and shelter-in-place restrictions. The First Financial Mortgage team is always available to serve and assist our customers. We can accommodate the needs of our customers and guide them through their home financing journey with individual care. We offer a full menu of products to meet all real estate financing needs of our customers. In 2020, we were very excited to welcome the addition of the Bryan/College Station and Austin markets. First Financial Mortgage is well-positioned in some of the fastest-growing housing markets in the state - TEXAS STRONG! MAIN OFFICE 101 College Park Dr. | Weatherford, TX 76086 | 817.596.0307 Senior Officers IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2019 $581,527 $270,429 $477,456 Dec. 31, 2020 $764,577 $309,907 $663,641 $12,248 $14,628 2.16% 2.20% 47.49% 44.33% Senior Officers Justin B. Hooper Chairman, President and CEO Cory Crenshaw Mineral Wells Market President Sean Woodring Executive Vice President Regional Board of Directors Justin B. Hooper Chairman, President & CEO Ronald D. Butler II First Financial Bankshares, Inc. Adam Feriend Owner and COO JRJ Construction, Inc. George Gault Attorney Weatherford Region :: Page 28 Tim Corzine Senior Vice President Chris Cregger Senior Vice President Eddie Gregory Senior Vice President Chief Operations Officer J. Bruce Hildebrand Retired First Financial Bankshares, Inc. Nan Kingsley President Bluestem Studios, Inc. Kevin R. Lackey Freedom Power Sports Stephen E. Milliken Former President C.D. Hartnett Company/ McLane Express, Inc. Lori Hill Senior Vice President Clynt Myrick Senior Vice President Jimmie Sue Lawson Senior Vice President Mike White, O.D. Therapeutic Optometrist Kyle Wilks Wilks Development, LLC Troy Fore President Ryan Craig Executive Vice President Dallas Kami Graves Executive Vice President Southlake Tammie Harding Executive Vice President Fort Worth Janet O’Dell Executive Vice President Abilene Bobby Brennan Senior Vice President Conroe Irene Green Senior Vice President Austin Cindi LaChance Senior Vice President Southeast Texas Wes Masters Senior Vice President San Angelo Melanie Motley Senior Vice President Bryan/College Station First Financial Mortgage :: Page 29 First Technology Services, Inc. Line Of Business Executives Senior Officers John Ruzicka Chairman, President and CEO Isabel Montoya Senior Vice President Deposit Operations Cynthia Watson Senior Vice President Chief Information Security Officer David Weems Senior Vice President Chief Operations Officer Larry Williams Vice President Technical Architecture Michael Greenhaw Vice President Senior System Analyst Sammy Scott Vice President End-User Support Manager Tony Vargas Vice President Project Management Brad Walker Vice President Help Desk and Network Support Laurinda Thomas Assistant Vice President Debit Card and Loss Prevention Manager Directors John Ruzicka Chairman, President and CEO First Technology Services, Inc. Executive Vice President and CIO First Financial Bankshares, Inc. April Anthony Chief Executive Officer Encompass Home Health Homecare Homebase Ronald D. Butler II Executive Vice President Chief Administrative Officer First Financial Bankshares, Inc., Chairman and CEO First Financial Bank, Abilene Region F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Gary S. Gragg Executive Vice President, Lending First Financial Bankshares, Inc. James R. Gordon Executive Vice President and Chief Financial Officer First Financial Bankshares, Inc. Monica Houston Executive Vice President Retail Banking and Training First Financial Bank Matthew Melbourne Executive Vice President First Financial Trust & Asset Management Company Trent B. Swearengin Chairman, President and CEO First Financial Bank, Stephenville Region Lee Warren Executive Vice President Chief Operations Officer First Financial Bank, Conroe Region First Financial Bank, Kingwood Region In 2020, we welcomed Patricia Schulz as Executive Vice President of Human Resources. Pat has the experience and expertise required to lead our human resources division to new heights and ensure that we will always remain the employer of choice across our diverse footprint. Throughout 2020, each of our Line of Business Executives played a critical role in assisting our customers, communities, and fellow employees navigate the COVID pandemic. Our Customer Care Team, led by Frank Gioia, was one of the first in the industry to pivot our call center to a remote environment to keep our employees safe and still take care of our customers from around the state. Gary Milliorn led the efforts to maintain sanitization and cleanliness, procure protective barriers, and deploy anti-micro bacterial treatment across all First Financial office and branch locations in addition to leading the Company’s energy retrofit efforts. Our Human Resources division, led by Josh Brown and Pat Schulz, worked with local officials, medical offices, and pharmacies to ensure that our 1,488 employees had access to adequate and rapid COVID testing and provided vitamin packs to employees who requested one, free of charge. Our marketing and communication efforts led by Will Christoferson were critical in delivering up-to-the-minute information to our customers regarding branch availability, Economic Impact Payment, and PPP updates to those who needed them on our new state- of-the-art website launched in 2020. Our retail banking and training leader, Monica Houston, completely revolutionized how New Employee Orientation is delivered to ensure our new employees could be trained and ready for their new roles in a safe and effective environment. Our Consumer Lending group, led by Michael Wolverton, developed the First Financial Paycheck Protection Program loan application process using our consumer loan platform and provided financing and deferrals to customers impacted by the COVID pandemic while continuing to grow our consumer loan business at record volumes. Business customers were not immune to the pandemic’s effects, and Andrea Smiddy-Schlagel ensured business customers had access to their cashflow by upgrading our Treasury Management suite of products in an environment of record growth in commercial accounts and deposits. Amid everything else, our mortgage business had the best year yet in 2020, and Brandon Harris and his appraisal services group answered the call with a record number of appraisals, returning results quickly to ensure our customers’ loans could close on time. Our Line of Business Executives are key to the Company’s continued growth and success and to our commitment to put You First. Line of Business Executives Will Christoferson Executive Vice President Advertising and Marketing Monica Houston Executive Vice President Retail Banking and Training Pat Schulz Executive Vice President Human Resources Andrea Smiddy-Schlagel Executive Vice President Treasury Management Michael Wolverton Executive Vice President Consumer Lending First Technology Services :: Page 30 Line of Business Executives :: Page 31 Frank Gioia Senior Vice President Customer Care Center Brandon Harris Senior Vice President Appraisal Services Josh Brown Vice President Human Resources Gary Milliorn Vice President Property Manager Abilene | Beaumont | Bryan/College Station | Fort Worth | Houston | Odessa | San Angelo | San Antonio | Stephenville | Sweetwater Trust & Asset Management (Continued) First Financial Trust & Asset Management Company Trust Office Managers First Financial Trust & Asset Management Company delivered excellent results in 2020. Total assets under management at year-end had a book value of $5.40 billion, an 11.2 percent increase from $4.86 billion at the end of 2019. The market value of the assets totaled $7.51 billion, a gain of 11.2 percent from $6.74 billion. For the year, total fee income increased 3.98 percent to $29.5 million from $28.4 million in 2019, and net earnings after tax increased 4.2 percent to $14.5 million from $13.9 million. Earnings were impacted in 2020 by lower oil and gas fees, a decrease from 2019 totaling $973 thousand. Despite the volatile equity markets in 2020, the Trust Company’s investment performance remained strong. The best performing portfolio was the Strategic Growth portfolio, which had a return of 29.46%. Our Large Cap Core portfolio also outperformed the S&P 500 with a return of 19.17%. Our fixed income portfolios also had outstanding returns, with the taxable portfolio returning 8.13% while the tax-free portfolio generated a return 6.84%. 2020 was an excellent year for expansion for First Financial Trust, as we were pleased to get our San Antonio Trust Office opened and fully staffed. This office is led by Mike Sierra, a San Antonio native with more than 20 years in the financial services industry. Additionally, we were delighted to announce the opening of our tenth trust office, located in Bryan/College Station. Jeff Wind will lead this office, and we look forward to its growth and success. We’ve all heard negative words used to describe the year 2020, but at First Financial Trust, we took a different approach. We are choosing to describe 2020 as blessed. We are fortunate to be blessed with the best clients in the country, blessed with the best employees in the industry, and blessed with the relationships we’ve forged with each and every one of you. We know 2020 was truly unlike any other, but we also know that because of you, our best is yet to come. Kirk W. Thaxton Chairman, President and CEO First Financial Trust Trust Assets - Book Value (in millions) 2016 2017 2018 2019 2020 $3,374 $3,866 $4,294 $4,856 $5,398 Trust Net Income (in thousands) 2016 2017 2018 2019 2020 $7.190 $8.579 $13.532 $13.892 $14,471 Trust Fees (in millions) 2016 2017 $0 2018 2019 2020 $19.64 $23.69 $28.18 $28.40 $29.53 Trust & Asset Management :: Page 32 40 27 Sweetwater 20 Abilene 35 Fort Worth Stephenville 30 20 10 Odessa San Angelo 10 35 Bryan/ College Station Beaumont San Antonio 10 Houston (Kingwood) 37 Konrad S. Halbert Executive Vice President Fort Worth Lon Biebighauser Executive Vice President Abilene David Castleberry Executive Vice President Stephenville Wayne Chowning Executive Vice President Sweetwater Barbara Hill Executive Vice President Odessa Bradley D. Brown Senior Vice President Beaumont/Orange Brent S. Miller Senior Vice President Houston Zach Reyes Senior Vice President San Angelo Michael Sierra Senior Vice President San Antonio Jeff Wind Senior Vice President Bryan/College Station Senior Officers Christopher N. Montoya Executive Vice President Manager, Equities Bill Rowe Executive Vice President Manager, Fixed Income Directors Kirk W. Thaxton Chairman, President and CEO First Financial Trust David L. Copeland President Shelton Family Foundation F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Matthew Melbourne Executive Vice President Chief Operations Officer David B. Pitzer Senior Vice President Manager, Real Property Josh Brown, CPL Senior Vice President Manager, Oil and Gas Advisory Director John L. Beckham Attorney, Beckham Rector and Eargle LLP Jay Lawrence President MAL Enterprises, Inc. David F. Lupton President Angelo Glass & Mirror Company, Inc. Mark K. Rich Director of Investments Kimbell Art Foundation Walter G. Riedel, III Chairman of the Board Nelda C. and H.J. Lutcher Stark Foundation Trust & Asset Management :: Page 33 Corporate Information Board Of Directors Officers Directors F. Scott Dueser Chairman of the Board, President and CEO Ronald D. Butler II Executive Vice President Chief Administrative Officer James Gordon Executive Vice President Chief Financial Officer Gary S. Gragg Executive Vice President Chief Lending Officer Luke Longhofer Executive Vice President Chief Credit Officer F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Year: 1991 Committee: 1 April Anthony CEO Encompass Home Health Homecare Homebase Year: 2015 Committee: 2 Vianei Lopez Braun Chief Development Officer Decker Jones, P.C. Year: 2020 Committee: 3 Tucker S. Bridwell* President Mansefeldt Investment Corp. Year: 2007 Committee: 1,4 * Lead Director David L. Copeland President, SIPCO, Inc. and Shelton Family Foundation Year: 1998 Committee: 1,2,4 Randy Roewe Executive Vice President Chief Risk Officer John Ruzicka Executive Vice President Chief Information Officer Kirk W. Thaxton Chairman, President and CEO First Financial Trust Marna Yerigan Executive Vice President Lending Kyle McVey, CPA Senior Vice President Chief Accounting Officer Corporate Information ANNUAL MEETING Tuesday, April 27, 2021 Abilene Convention Center 1100 N. Sixth St. Abilene, TX 79601 10:30 a.m., or via livestream at ffin.com/live-events FOR FINANCIAL AND INVESTOR INFORMATION: James Gordon Executive Vice President Chief Financial Officer 325.627.7155 SEND CERTIFICATES FOR TRANSFER AND ADDRESS CHANGES TO: Continental Stock Transfer & Trust Company 1 State Street 30th floor New York, NY 10004 ADDRESS SHAREHOLDER INQUIRIES TO: Continental Stock Transfer & Trust Company 1 State Street 30th floor New York, NY 10004 TRANSFER AGENT Continental Stock Transfer & Trust Company 212.509.4000 www.continentalstock.com CORPORATE OFFICE 400 Pine St. | Suite 310 Abilene, TX 79601 325.627.7155 800.588.7000 CORPORATE MAILING ADDRESS P.O. Box 701 Abilene, TX 79604 INDEPENDENT PUBLIC AUDITORS Ernst & Young, LLP Dallas, TX Mike Denny President Batjer and Associates Year: 2019 Committee: 2,5 Murray Edwards Principal The Edwards Group Year: 2006 Committee: 1,2,4,5 Tim Lancaster Former President and CEO Hendrick Health System Year: 2013 Committee: 1,2,3,4,5 Kade Matthews Ranching Investments Year: 1998 Committee: 3 Robert C. Nickles, Jr. Executive Chairman Alegacy Group, LLC Year: 2019 Committee: 3 COMMITTEE CHAIRMEN: 1. Executive Committee: F. Scott Dueser, Chairman 2. Audit Committee: David L. Copeland, Chairman 3. Compensation Committee: Tim Lancaster, Chairman 4. Nominating/Corporate Governance Committee: Tucker S. Bridwell, Chairman 5. Bank Directors’ Loan Committee: Murray Edwards, Chairman Johnny E. Trotter President and CEO Livestock Investors, Ltd. Year: 2003 Committee: 1,3,4 NASDAQ: FFIN 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 “believes,” “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, 2020, deposit information compiled by the Federal Deposit Insurance Corporation. Corporate Information :: Page 34 Board of Directors :: Page 35 400 Pine St., Abilene, TX 79601 | 325.627.7200 | ffin.com 

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