First Financial Bankshares
Annual Report 2023

Plain-text annual report

ONWARD 2023 ANNUAL REPORT TM. , A LETTER TO OUR SHAREHOLDERS Last year was another challenging time for the banking industry, largely because the Federal Reserve during 2022–2023 carried out the most rapid increase in interest rates in our country’s history. This surge, following on the heels of 10 years of low rates, negatively impacted our net interest margin as short-term rates on deposits rose more than the longer-term rates on bonds and loans. The higher rates also slowed the housing market, which lowered the volume of loans in our mortgage business. After 36 years of increased earnings, we experienced a decline in our year-over-year net income in 2023. In response to the interest rate increases, we worked to restructure our balance sheet to minimize the decline in income for 2023 and position the Bank to achieve better earnings in the critical intelligence such as credit ratings, benchmarks and analytics covering the global capital, commodity and automotive sectors—ranked First Financial Bankshares as the number seven bank in the nation (https://www.spglobal. com/marketintelligence/en/news-insights/research/ east-west-bancorp-leads-us-public-banks-in-2022- financial-performance-ranking). But these were not the only recognitions that we received. The Bank, our Regions, and our people earned many other awards throughout the year (see page 18). FINANCIAL RESULTS coming years. At the same time, I am proud of the many After 36 consecutive years of increased earnings, our accomplishments we recorded during the year, including net income declined 15.1 percent to $199.0 million from continuing to outperform our peer group of banks. We $234.5 million in 2022. There were four primary causes of also saw our year-end total deposit levels remain stable this decrease. The first was a $17.6 million (or 4.4 percent) when compared with 2022 year-end balances. We drop in net interest income because our interest cost on achieved this result primarily by adding over 12,500 net deposits increased faster than the interest income on our new accounts. Additionally, we grew loans organically bond portfolio and loans. The second was a $7.1 million (or by $706.9 million, or 11.0 percent, while maintaining our 37.5 percent) decline in real estate mortgage fees, which conservative credit standards. And, as noted above, we mirrored the decline in the number of homes sold because restructured our balance sheet by selling $411.1 million in of higher interest rates. Third, we sold $411.1 million in securities with lower yields to redeploy those dollars into securities at a loss of $7.1 million versus gains of $2.1 our higher-earning loan portfolio. The cash flows provided million in 2022. We redeployed these funds into our loan from selling the securities, combined with the monthly portfolio. The fourth source of our earnings decline was an maturities in our bond and loan portfolios, are providing $8.6 million (28.3 percent) decrease in debit card revenue us with the liquidity we need to grow loans, which should due to the Durbin Amendment. (The Amendment, passed benefit our interest income as we are redeploying this by Congress in 2010 as part of the Dodd-Frank financial liquidity to much higher yielding assets. Overall, we reform legislation, requires the Federal Reserve to limit believe that we are well positioned for success in this the fees charged to retailers for processing debit cards; economic environment. however, our company only became subject to it on July 1, 2022.) We realized the decline in debit card revenue during the last six months of 2022 and the full year of 2023. RECOGNITION The provision for credit losses, including provisions for First Financial Trust & Asset Management Company again In February 2023, Forbes magazine named First Financial unfunded commitments, was $10.6 million, which was delivered solid results, which were fueled by a $622.5 million Bankshares, Inc. the number two bank in the country out of the 100 largest publicly traded U.S. banks and thrifts (https://www.forbes.com/lists/americas-best- down 39.0 percent from $17.4 million for 2022. This large growth in the book value of trust assets. Total trust assets decrease was due primarily to lower unfunded commitments under management at year-end reached a book value of and better economic metrics. Nonperforming assets as $7.5 billion, an 9.0 percent increase from $6.9 billion at the banks/?sh=63638fd8c0de). Forbes’s ranking is based on a percentage of loans and foreclosed assets totaled 0.49 end of 2022. The market value of the trust assets totaled nine metrics measuring the banks’ growth, credit quality percent at December 31, 2023, compared with 0.38 percent $9.8 billion, up 11.7 percent from $8.8 billion at year-end and profitability. Also in 2023, S&P Global—a provider of at December 31, 2022. 2022. Total trust fee income for 2023 grew as well—to $40.5 Classified loans totaled $176.2 million at year-end 2023 compared with $150.7 million a year earlier, an increase of 16.9 percent. Noninterest income declined 18.0 percent to $108.0 million from $131.7 million in 2022. The decrease was due primarily to declines of $7.1 million in real estate mortgage fees, $8.6 million in debit card income and $9.3 million in gains and losses on the sale of securities. million from $40.0 million—a 1.2 percent gain. Within that category, trust and estate fee income grew $1.6 million, which was offset by a decline in oil and gas fee income of $1.1 million. The trust company’s net after-tax earnings increased 3.7 percent to $21.6 million from $20.9 million. REAL ESTATE ACTIVITIES Noninterest expenses increased 1.3 percent to $237.9 In March 2023, we opened a new location in Huntsville to million from $234.8 million. This increase was due primarily replace two buildings we had across the street. This state- to a $4.0 million increase in FDIC insurance premiums, of-the-art, highly energy-efficient, 8,850 square- foot building and a $892 thousand increase in losses sustained from is now home to all our Huntsville employees and will better continued fraud losses. These were offset by a decline in serve our customers with the latest in technology. This officer incentives of $2.3 million and a reduction of $2.9 location also has a deposit-taking ATM and five motorbank million in profit-sharing expenses. lanes with one designed for large trucks. Even with the decline in earnings, we again outperformed our peer group of banks on several key financial metrics. Our return on average assets was 1.55 percent compared with 0.98 percent for our peers. Return on average equity was 14.99 percent versus our peers’ 9.94 percent. Our efficiency ratio, which expresses expenses as a proportion of tax-equivalent revenues, increased to 47.26 percent; our peers’ average came in much higher, at 60.37 percent. Also in March 2023, First Financial Bank’s Bryan/College Station Region opened its new location at 2445 Harvey Mitchell Parkway South, on the northwest corner of Harvey Mitchell Parkway and Earl Rudder Freeway. This new state-of-the-art branch is a 16,000-square-foot, highly energy-efficient building that features a large lobby, offices for lending, mortgage and trust officers, and five motorbank lanes with a wider lane designed for large trucks. Our new Total loans at year-end 2023 increased 11.0 percent to $7.2 building is at one of the best locations in Bryan/College billion from $6.4 billion at the end of 2022. Total deposits Station and gives our customers easier access to our people grew slightly at 1.2 percent to $11.1 billion from $11.0 billion and services. at year-end 2022. Consolidated assets at year-end 2023 increased slightly by $131.5 million (or 1.0 percent). The increase was due to a 24.6 percent decrease—to $403.3 million at year-end 2023 from $535.2 million at year-end 2022—in unrealized losses on investment securities. These In August 2023, after having a successful loan production office, First Financial Bank’s Bryan/College Station Region was approved to open a new branch at 100 West Decherd, Suite C, in Franklin, Texas. The banking team, made up of local Franklin bankers, is led by Justin Kleiber losses are reflected in the shareholders’ equity section of our and Justen Salcido. balance sheet. A Letter To Our Shareholders | Annual Report 2023 | 2 A Letter To Our Shareholders | Annual Report 2023 | 3 This year, the Bryan/College Station Region will make with U.S. Bank starting in October 2019 and also held In January 2024, First Financial Bankshare’s Board the seventh president of one of our Regional banks to have one other real estate change. In May 2024, the bank will positions with other large organizations like BBVA USA and of Directors elected Eric Bonnell as the Director of started with the Company and to have moved up through move into its Highway 21 branch from a leased space PricewaterhouseCoopers, where he started his career. A Enterprise Risk Management. Eric oversees the our training programs to become President of one of our in a convenience store to a new building at 1622 North native of Puerto Rico, Javier earned a Bachelor of Science enterprise risk management (ERM) framework to provide Regions. He currently serves as a Director of the Nederland Earl Rudder Freeway in Bryan. The new branch, also (Psychology) degree from the University of Puerto Rico and more transparency into and structure for proactive risk and Port Arthur Chambers of Commerce and as a Director state-of-the-art, occupies 3,300 square feet and has a Master’s degree in Business Administration (Accounting) management. Eric comes to First Financial from Atlantic of the Luther Theater. Additionally, he is a current member of, three motorbank lanes plus an ATM lane. It will serve our from Bowling Green State University; he also completed Union Bank, a $21 billion bank in Richmond, Virginia, and past President of, the Nederland Rotary Club. customers much better than the former leased space, the School of Management Program at the University especially since this branch has been our busiest in the of Texas. He holds the designations of Certified Internal entire city. MANAGEMENT CHANGES Auditor and Certified Information Systems Auditor, and has earned a Certification in Risk Management Assessment. In November 2023, First Financial Bankshares, Inc. In January 2023, First Financial Bankshares, Inc. announced the election of Megan Dobbs as Executive Vice announced the election of Michelle S. Hickox as Executive President of Marketing. Megan joined First Financial after Vice President and Chief Financial Officer. Michelle working as a director of marketing and communications for formerly served as Chief Financial Officer of Independent Bally Sports in Dallas, where she oversaw creative services, Bank Group, Inc. (IBTX) and its subsidiary, Independent partner marketing and public relations for the regional Bank, an $18 billion publicly traded bank holding company sports network. Previously, Megan held senior positions at based in McKinney, Texas. At IBTX, she led the company the Community Foundation of Abilene and the Center for through its initial public offering in 2013 and played a key Contemporary Arts, and she was a news anchor and news role in 10 acquisitions during her tenure. Prior to joining director at KTAB/KRBC TV in Abilene. Megan is a graduate IBTX, Michelle was an audit partner at RSM US LLP in of Texas A&M University-Commerce. Dallas, serving financial institutions throughout Texas. She is a certified public accountant and a graduate of Texas A&M University. Also in November 2023, First Financial Bankshares, Inc. announced the appointment of Keith Morton as Executive Vice President, Southeast Texas Area Credit Administration. Also in January 2023, First Financial Bank’s Board of Keith oversees the credit functions in our Southeast Directors elected Mike Parker as Executive Vice President Texas Regions. His oversight of these Regions’ lending and Chief Compliance Officer. Mike brings more than efforts will encompass all aspects of lending, including 17 years of compliance experience to First Financial, credit underwriting, loan decision making, portfolio risk including his most recent post as a director of compliance management, and compliance with bank policy and governance with USAA Federal Savings Bank. Mike has regulatory requirements. also held positions with Capital One and Ocwen Financial Corporation in compliance and audit director roles. He began his banking career in 2005 as an examiner with the Federal Reserve Bank of Richmond, where he specialized in compliance. He is a native of western New York and earned a Bachelor of Science degree in Economics from Virginia Commonwealth University; he also holds a Certified Regulatory Compliance Manager designation. In September 2023, First Financial Bankshares, Inc. Keith previously served as Senior Vice President of Special Assets at Capital One in Houston beginning in 2020. He had an extensive 20-year tenure at Capital One Bank in Houston, where he held the positions of Vice President, Commercial Credit Manager and Senior Vice President, Managing Underwriter in the Commercial Lending Group. Keith earned a Bachelor of Business Administration degree in Finance from McNeese State University and a Master of Business Administration degree in Finance from Louisiana State announced the appointment of Javier Jurado as Executive University. He holds a Credit Risk Certification from the Risk Vice President and Chief Audit Executive. He oversees and executes internal audit planning and reporting, and reports directly to the Audit Committee. Javier brings more than 19 years of audit experience to First Financial, including his most recent posts in audit management at large banks and a public accounting firm. He worked A Letter To Our Shareholders | Annual Report 2023 | 4 Management Association. Keith replaced Marna Yerigan, who retired from the Company after a 12-year tenure, overseeing credit in the Fort Worth and then the Southeast Texas Regions. We will miss Marna greatly and appreciate her exemplary years of service. where he was instrumental in developing the bank’s ERM framework. He has also served in a number of operational risk management and technology-related roles including business continuity and information security. Eric earned a Bachelor of Arts degree (Computer Science) from Manhattan College and a Master of Science degree (Computer Information Systems) from Iona College. He graduated from the American Banking Association’s Stonier Graduate School of Banking and also the Wharton Leadership Program, both at the University of Pennsylvania. He has earned the designations of Certified Information Privacy Professional (CIPP/US), Certified in Risk and Information Systems Control (CRISC) and Certified Information Systems Security Professional (CISSP). Also in January 2024, First Financial Bank announced the promotion of Lori Hill to Executive Vice President, Retail. Lori is an excellent selection for this position because of her 25 years of experience with the Company. Lori began her career at First Financial while attending Abilene Christian University. She played an integral role in founding what is now the Customer Care Center. Later, she transitioned into the Retail line of business, where she continued to advance her career. Most recently, she served as Senior Vice President, Retail Administrator of First Financial Bank, Weatherford Region. In her new role, Lori will lead all retail initiatives and will work with each of our Regional Presidents and Chief Operating Officers to ensure we have the best retail team in our footprint. In February 2024, the Board of Directors of First Financial Bank, Southeast Region announced the promotion of Blaine Caillier to Regional President. Blaine started his career at First Financial Bank, Southeast Region over 13 years ago and most recently served as the Mid-County Market President beginning in 2016. Stephen Lee, the former President, will remain as CEO and Chairman of the Southeast Region Board of Directors. Blaine is a graduate of Lamar University; Southwestern Graduate School of Banking at Southern Methodist University; Leadership Southeast Texas; Texas Bankers Association Management Development Training Program; and FFIN University. He is Michelle S. Hickox Executive Vice President Chief Financial Officer Mike Parker Executive Vice President Chief Compliance Officer Javier Jurado Executive Vice President Chief Audit Executive Megan Dobbs Executive Vice President Advertising and Marketing Keith Morton Executive Vice President Credit Administration Eric Bonnell Senior Vice President Enterprise Risk Management Lori Hill Executive Vice President Retail Banking Blaine Caillier Regional President Southeast Texas Region A Letter To Our Shareholders | Annual Report 2023 | 5 partnering with the Overland Property Group, the Texas Department of Housing and Community Affairs and the First Financial Bankshares Employment Statistics COMMUNITY AND NEIGHBORHOOD INVOLVEMENT Our Bank has always adhered to the philosophy that we are only as successful as the communities we serve. To become a better bank, we strive to improve the quality of life in each of our communities. Besides providing the latest in financial services, we participate on local nonprofit, civic and church boards, volunteer our time and help raise money. The work our team does every day amazes me. We spotlight their efforts with our annual Day of Service, which last year took place on October 9th, the Columbus Day holiday. On that occasion, we had 990 employees serving 81 agencies and organizations across Texas. We design our banking products and services to meet the needs of all neighborhoods, from the lowest- to the highest-income. I am especially proud of our ongoing contributions in low-income neighborhoods, where we teach classes in financial literacy, homebuying and fraud prevention. We also offer classes on how to utilize our products and services such as our very competitive free checking, savings, affordable home mortgage loan and ITIN (Individual Taxpayer Identification Number) programs. Midwest Housing Equity Group. We have committed $5.5 million to support the historic renovation of the former Travis Elementary School into low-income housing units for senior citizens. We are eager to see the completion of this project, which has already created other redevelopment in this low-income area. DIVERSITY AND INCLUSION First Financial Bankshares, Inc. embraces and promotes a culture of diversity and inclusion. We seek 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 also continue to refresh and diversify our Regional and subsidiary boards, which have 39 women and minorities as members. These boards are made up of the movers and shakers of each of our market communities. We appreciate the participation of these fine men and women; their expertise, experiences The affordable home loan and the ITIN mortgage loan and guidance help us to better serve our communities. programs have become so popular that in 2023, we made 1,074 of those loans in majority minority markets, up from 786 loans in 2022. I am especially proud of our team in Fort Worth, who made 223 loans in the majority minority markets, which was an increase from from the previous year’s 193 loans. We attribute our success in continuously increasing loans in the majority minority markets to partnerships we have formed with builders, developers, realtors, city leaders and nonprofit organizations in the Fort Worth We highlight the importance of diversity and inclusion to our company on page 19, where we present our 2023 Shining Stars. This program annually recognizes the dedicated and professional First Financial bankers who have demonstrated consistent excellence in living our Customer Service First philosophy. Our Shining Stars perform at the highest level, maintaining positive attitudes and a proactive approach to accomplishing our mission. Year after year, a large percentage of this honored group are women and area. In fact, loans made in Fort Worth’s majority minority minorities. markets constituted 46.0 percent of all our mortgage Of the 21 professional bankers achieving this award in loans made in Fort Worth. A great example of how the Bank can make a big difference in low-income areas is the Landmark at Abilene redevelopment project. Here, the Bank is 2023, 14 were women and nine were minorities, which demonstrates that our diversity efforts bring the highest- quality people to our company. We recognize and celebrate them for what they do to make this company great. ONWARD Although 2023 was a challenging year for the banking industry, we used those challenges to bolster our strategy for overcoming the rapidly rising interest rate environment. slowing and with banks trying to adjust to rapid rises in interest rates and losses in their bond portfolios (which will take time to roll off), we do not see many banks choosing to sell at this time. We restructured our balance sheet, kept deposits stable, However, I expect that by the end of 2024, we will start and grew loans and trust assets by 11.0 and 9.0 percent, seeing banks come to the market, and hopefully we will respectively. We believe we are well prepared to perform be able to find the right bank to bring into our company. I even better in the coming years, since we have continued can assure you that we are eager to get back to buying to upgrade our staff with higher performers. These banks and growing the Company through acquisitions. moves should bring additional growth. With our assets We have installed or are in the process of installing new surpassing the $10 billion mark back in 2020, far earlier systems for new accounts, lending, accounting and trust than we expected, we have moved consistently and services. Each of these systems is bringing us state-of- earnestly to find the right people from larger banks who the-art technology and will enhance our efficiency. can bring us the expertise to perform well as a $10 billion- plus bank. We certainly see that expertise in our most recent hires for Chief Financial Officer, Chief Compliance Officer, Chief Audit Executive, Executive Vice President Southeast Texas Credit and Director of Enterprise Risk Management, to mention a few. I am eager to see what our dedicated people will achieve as we move through 2024. I could not be more pleased with our younger people who have taken on new positions across our company over the past several years and who have accepted more responsibilities to support our growth. Our priorities are to achieve organic growth in loans, deposits and trust relationships; improve our noninterest income; and control our expenses. With the economy I am very pleased to work with such a dedicated and talented professional team of board members, officers and employees. They continue to go well beyond the call of duty in providing our customers and communities with exceptional service, and I thank each one of them. As you can tell from the decrease in profit sharing and compensation for 2023, we align ourselves with our shareholders who are so loyal and supportive of our company. We are ready to move Onward, never forgetting that we work for you. F. Scott Dueser Chairman, President and CEO A Letter To Our Shareholders | Annual Report 2023 | 6 A Letter To Our Shareholders | Annual Report 2023 | 7 COMMUNITY STORIES “Mi casa es tu casa.” “Mi casa es tu casa.” To the Gonzalez family, that is more than an expression, it is a way of living. “We love having gatherings. We love having friends over, family over…it feels like home,” said Elizabeth Gonzalez, whose family has had an open door to family and friends since moving into their new Irving, Texas home in September. When Elizabeth and Rene Gonzalez began their homebuying journey in 2022, they had difficulty obtaining financing from other banks. Determined to create a home for their family, they were referred to Craig Zemarkowitz with First Financial Bank in Fort Worth. He introduced them to First Financial’s ITIN (Individual Tax Identification Number) home loan program, which offers future homeowners financing without a social security number. “Craig was so helpful with the process of the loan. We did it pretty quickly,” Elizabeth said. “I can text Craig anytime, seven days a week, and he will help me…He was always available for us.” It has been onward from there for the Gonzalez family. They moved into a larger home in 2023, again receiving a mortgage through the First Financial ITIN program. The added space allowed them to host family members from across the state over the holidays. With their new home, the Gonzalez family was able to bring their “mi casa es tu casa” way of life to reality. “We were so excited to have the family over, especially for Christmas,” said Rene Gonzalez. Perhaps the biggest fan of the new home is the littlest one of all, eight-year-old Zoe. “One of my favorite things about it is my room, where I get to have all of my free time sometimes. I have a lot of space so I can relax.” The hard work and determination required to achieve their family’s homeownership dream is not lost on Elizabeth and Rene’s oldest daughter, Natalee. “They have definitely been great role models. It shows my sister and me as we’re growing that anything we set our minds to and we work towards, we can accomplish…We’ve seen that, and it’s a great example to have.” That impact on their daughters is what Elizabeth and Rene say matters most. “Everything we do is for our daughters…having a better life for them,” said Elizabeth. “We already teach them that you can do anything, as long as you work hard and be disciplined in what you want to do, it can happen—no matter what situation you are in, no matter what race, no matter what color you are.” These are inspirational words from a woman whose family is proof that a house is about much more than a building— it’s about the life and people within that house who truly make it a home. The Gonzalez family in their new home Community Stories | Annual Report 2023 | 8 Watch their story on video! ffin.com/annual-report Craig Zemarkowitz with the Gonzalez family Community Stories | Annual Report 2023 | 9 Sparking Positive Change People at every level of the company have experienced the life-altering impact of the Principal culture, including Gabe Hughes, who started on the assembly line and earned his way to General Counsel and VP of Compliance. “I struggled with addiction for many years, and I actually spent four-and-a-half years in the Texas penitentiary… When I got out, Bryan and Blake gave me a second chance,” said Gabe. “We hire a lot of people that need second chances, people that a lot of others would have given up on, like myself.” Transformative stories like Gabe’s and Jeffery’s are at the core of what motivates Bryan. “Some guy told me one time, he said, ‘The most dignifying thing you can give to someone else is to provide them with a job.’ So, not only do we provide jobs, but we really look at it as though we are impacting the families’ lives.” Principal Industries is a beautiful testament to the growth a business can experience when it focuses on the combination of driving innovation and, more importantly, its people onward. “I love the people in the company...This is the best company I’ve worked for in my life.” - Jeffery Miles, Principal Industries Bryan Vincent (center) with VP of Compliance Gabe Hughes and CFO Sheila Alley Jeffery Miles in a Principal Industries Warehouse Brothers Bryan and Blake Vincent started Principal Industries with little more than an idea and unfettered determination. “We started in, literally, I think it was half of a dog grooming facility office with cinderblock walls.” said co-owner Bryan Vincent. 14 years later, Principal Industries has grown to become the largest global provider of LED lighting, electrical components, and services to the commercial signage and architectural lighting industry. Headquartered in San Angelo, Principal serves clients across the world and has manufactured lighting for companies like Chick-fil-A, Circle K, Exxon Mobil, Love’s Travel Stops, and major sports arenas like Allegiant Stadium in Las Vegas. First Financial Bank has been honored to support the company’s growth over the years. “What I love about First Financial is I know Chris, I know Luke,” said Bryan. “We’ve now done a couple of acquisitions, and First Financial has really stepped up and helped us figure out the best way to do that financing.” Principal is also a large proponent of First Financial’s treasury management services. When a company grows as quickly as Principal, support for back-office functions is critical. Services such as ACH and wire origination, foreign exchange, fraud detection, and remote deposit make all the difference in their day-to-day operations. The partnership between First Financial and Principal serves a greater purpose than simply bottom-line growth. What Bryan says he cares about most are the people who make it all happen. “One of the things we’ve done that’s really close to me is really giving people second chances,” said Bryan. “I’m a recovered alcoholic, so it’s important to me to give back to people who need that opportunity.” Jeffery Miles is one of those people. He moved from Houston to get a fresh start while on the road to recovery. When Jeffery first met the Principal team, it was a quick match. “I love the people in the company,” said Jeffery. “You’ve got people in recovery you can talk to…This is the best company I’ve worked for in my life.” Community Stories | Annual Report 2023 | 10 The Principal team with Chris Evatt, Luke Uherick, and Scott Creecy of FFB-San Angelo Watch their story on video! ffin.com/annual-report Community Stories | Annual Report 2023 | 11 Richard and Judy Gaona at their farm with Wayne Chowning of First Financial Trust Watch their story on video! ffin.com/annual-report Building the Future, Preserving the Past Drive about 50 miles northwest of Abilene, and you will find yourself amidst a backdrop of endless Texas rolling plains. “My dad purchased this place in the 70s,” said Richard Gaona of the farm and ranch land he now owns and operates near the small town of Roby, Texas. “This was mostly a pasture area, and he took time to clean it up and make it into what we’ve got now with wheat, grass, and cattle on it. That was one thing he loved...cattle and farming.” Richard’s father moved to Texas from Mexico to purchase land and build a prosperous life for his family. “He had to work really hard to purchase land,” said Richard. “He was a very, very good farmer, and he taught me a lot about how to do it and how to do it right. That’s why I want to continue and try to keep this place together.” Richard and his dad farmed together until his father passed away in 2004. Richard now works to carry on his father’s legacy. Over the years, Richard and his wife, Judy, have run a successful agricultural business. That led them to think strategically about building wealth for retirement and future generations. “I started looking around and talked to several different groups, and I talked to First Financial Trust,” said Richard. “I told them that I’m already in a risky business, and I don’t want to lose what I’ve worked so hard for, and they listened. And that made a lot of difference.” The Gaonas formed a strong relationship with Wayne Chowning, First Financial Trust’s Executive Vice President serving the Sweetwater region. “He stays on top of stuff. He keeps us informed,” said Judy. Richard agreed, adding, “Wayne has been really good. He explains things to us very well and wants to make sure that we understand what they’re doing. If I’ve got a question, I can come in or call him…the trust is there.” “He loved this place. He took care of it, so…I want to continue and keep it as good as it is or better than he left it.” Helping people like Richard and Judy look onward with peace of mind really is a matter of trust. “We can say that, because of the investments and things that we’ve done…we’re set up where we don’t have to worry about living off just social security,” said Richard. “That’s a good feeling. That’s comfort.” That comfort means Richard and Judy can fix their sights on what they love—time with children and grandchildren; pampering their beloved dog, Lacy; and spending their evenings riding around the farm in their all-terrain vehicle, watching the sun set over those beautiful Texas plains. Community Stories | Annual Report 2023 | 12 Community Stories | Annual Report 2023 | 13 Secret Sauce: a Family & a Dream It’s hard to say what’s stronger once you set foot onto a Hard Eight BBQ lot—the savory aroma of woodfired meat from the officer in other locations that we’re at…It makes it easy to do business with these guys, because they’re friends.” Watch their story on video! ffin.com/annual-report Carie is amazed by what Hard Eight has become today. “It’s kind of unbelievable sometimes…I’m thankful and grateful for the support that we’ve had.” They are likely not done growing yet. The owners have their sights set onward, to future expansion. At the center of their growth, Chad says, are the people who work at Hard Eight and the communities they serve. “To be able to share that with the community and with other people in other walks of life that actually came in here and became part of our family is the most important thing.” Those community-centered values are as memorable as Hard Eight’s secret sauce smothered over tender slices of slow-cooked brisket with a side of potato salad…or at least pretty darn close. "It makes it easy to do business with these guys, because they’re friends.” - Chad Decker, Hard Eight BBQ pit, or the warm essence of good ‘ole southern hospitality. “…the old German style of barbecue, the open pit style… that’s what I grew up with,” said Chad Decker, a Hard Eight BBQ co-owner who grew up in the Texas Hill Country. Vicki Nivens and her late husband, Phillip, opened Hard Eight BBQ in Stephenville, Texas in 2003, along with their daughter and son-in-law, Carie and Chad Decker. Before even walking through the doors, customers are greeted with the open pit and Hard Eight’s signature rustic appeal. “We love the old wood and that kind of look, and we just tried to bring that in here, just to make something more unique,” said Vicki. The combination of authentic pit barbecue and the curated down-home feel has clearly been a hit. Hard Eight BBQ has grown to have five locations throughout north Texas. Vicki attributes much of their success to maintaining a family-run business. “We are very family oriented…I grew up in a family business, so I just love that type of atmosphere.” First Financial has had a front-row seat to the Hard Eight BBQ journey, starting when Ron Butler—now Chairman and CEO of First Financial Bank, Abilene Region—was President of the bank’s Stephenville region. “Phil had met Ron Butler and some other guys from First Financial...We’ve never looked back,” said Vicki. “They have been so supportive…and we have made life-long relationships with some of the bank people…It’s been a very good experience.” The relationship extends beyond meeting the business’s banking and lending needs. As Chad puts it, it’s more like a friendship. “There’s never been a point in time that we haven’t been able to walk in there and shake hands and visit about each other’s family,” said Chad. “And it’s just like that with every loan Vicki Nivens, Carie and Chad Decker with Trent Swearengin of First Financial Bank - Stephenville Community Stories | Annual Report 2023 | 14 Community Stories | Annual Report 2023 | 15 Settings Goals & Saving Time Anthony Egbo Jr. is a former Abilene Christian University football player, which is just one of many titles the graduate student carries. “I’ve been a part of the Diversity Council, President and Vice President of the Student Athlete Committee…representative to the Western Athletic Conference, and the national representative on the Division I Student-Athlete Advisory Committee. I’ve been involved in a lot of different community organizations. I did my undergrad in Psychology and am now pursuing my MBA. I just finished an internship with the President’s Office, and now I’m transitioning to an internship with the athletic department.” Anthony attributes much of his drive to the example set by his parents, who immigrated to Houston from Nigeria as young adults. “My parents, just the work ethic that they put in to give my siblings and me what we have…They put all of us through school. They put us through youth sports. They put us in gifted and talented programs,” said Anthony affectionately. “Everything was directed towards us being better than them.” For a busy grad student with as much tenacity and community involvement as Anthony, managing his time well is exceedingly important. “I try not to use time as an excuse. Time management has become crucial. Efficiency is the main goal—being efficient with my systems and my routine.” Managing money needs to be efficient, too, which is why Anthony relies heavily on First Financial Bank’s mobile banking tools. “Mobile banking is crucial. It’s harder for me to get into a physical location, just from a time perspective. Being able to check my balance, get e-statements, transfer money…pretty much everything I need to do in an efficient manner, I can do it in the mobile app.” Anthony offers his fellow students and young professionals some encouragement that, with a bit of planning and the right tools, it really is possible to manage time well and learn how to effectively manage personal finances. “Use the resources that banks like First Financial take the time to develop and provide for us,” said Anthony. “I think that taking it upon ourselves to say, ‘Hey, I want to learn to be more productive with my resources and my time,’ I think that’s really important.” If anyone is a living testament to the power of combining hard work, service, ingenuity, and positivity, it is most certainly Anthony Egbo Jr., whose future looks unquestionably bright. “I try not to use time as an excuse. Time management has become crucial. Efficiency is the main goal— being efficient with my systems and my routine.” - Anthony Egbo Jr., Graduate Student and First Financial Bank Customer Community Stories | Annual Report 2023 | 17 Anthony on the go with First Financial Mobile® Community Stories | Annual Report 2023 | 16 Watch Anthony’s story on video! ffin.com/annual-report FIRST FINANCIAL BANK 2023 AWARDS TEAM-CENTERED CULTURE: Since their teammate, Hanna, was unable to attend the 2023 Shining Stars ceremony, the other award recipients printed a cut-out of her face as a fun way to make her feel included. SHINING STARS 2023 Our service philosophy at First Financial is to exceed customer expectations. Each year, we recognize Shining Stars who demonstrate consistent excellence in fulfilling this philosophy. Shining Stars perform at the highest level, maintaining a positive mindset and a proactive approach to fulfilling our mission to build loyal life-long relationships by providing first class service with personal attention. We are proud of our 2023 Shining Stars! CONGRATULATIONS SHINING STARS! Hereford: Johnathan Jeter Kingwood: Alison Shortt Orange: Sidney Williams San Angelo: Orlando Lara Southlake: Noemi Macias Stephenville: Katie Jo Nix Sweetwater: Joe Martinez Weatherford: Tim Corzine Abilene: Carla Lane Bankshares: Darlene Ledwell Bryan/College Station: Hanna Prevost Conroe: Alma Gamboa Eastland: Holly Urban Fort Worth: Nancy Delgado Mortgage: Julie Zsambok Shared Services: Accounting - Nancy Grigsby Lending - King Buchanan Treasury Mgmt - Mandy Watson FFTAM: Jeff Leving FTS: Matt Perez First Financial Awards | Annual Report 2023 | 18 2023 Shining Stars | Annual Report 2023 | 19 79BRANCH LOCATIONS 9TRUST OFFICES FIRST FINANCIAL BANKSHARES FOOTPRINT FIRST FINANCIAL BANK LOCATIONS Abilene ........... 325.627.7200 Eastland ......... 254.629.6100 Newton ......... 409.379.2200 Acton .............. 817.573.6900 *Addison ............ 972.385.8239 El Campo ...... 979.543.6441 Odessa ........ 432.367.8900 Fort Worth ..... 817.410.4979 Orange ........... 409.883.3563 Albany .............. 325.627.7905 Franklin ......... 979.571.8900 Palacios ......... 361.972.2585 Aledo .............. 817.341.5200 Glen Rose ........ 254.897.4808 Port Arthur ..... 409.726.8000 Alvarado ......... 817.774.5100 *Austin ............ 512.422.1782 Granbury ........ 817.573.6900 Ranger ............ 254.629.6188 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 Bridgeport ..... 940.683.8700 Katy-Fulshear .. 281.346.0221 Southlake ...... 817.410.2915 Brock ............. 817.596.0307 Keller ............. 817.329.8625 Spring ............. 346.328.6910 Bryan ............ 979.260.2100 Kingwood ...... 281.318.4600 Stephenville ... 254.965.5036 Burleson ........ 817.774.5175 Lumberton ...... 409.751.7122 Sweetwater ... 325.235.6600 Cisco .............. 254.629.6111 Magnolia ....... 936.273.4700 Tomball .......... 281.516.7835 Cleburne ........ 817.774.5100 Mauriceville ... 409.745.4433 Trent .............. 325.862.6121 Clyde .............. 325.627.7910 Merkel ........... 325.235.6660 Trophy Club .... 817.329.8615 College Station... 979.260.2100 Midlothian ..... 972.723.7100 Vidor ............... 409.769.5413 Conroe ............ 936.760.1888 Mineral Wells .. 940.327.5400 Waxahachie ... 972.723.7150 Cut and Shoot .... 936.788.2121 Montgomery .. 936.597.5997 Weatherford ... 817.598.2600 Decatur .......... 940.683.8780 Moran ............ 325.627.7953 Willis ............. 936.890.3500 *Mortgage Loan Office New Waverly .. 936.295.2224 Willow Park ... 817.598.2780 FIRS T FIN AN CIAL TR U ST LO CATIONS Abilene 400 Pine Street, Suite 300 325.627.7100 Beaumont 3515 Dowlen Road 409.600.6460 Fort Worth 1000 Forest Park Blvd., Suite 200 682.703.6404 Kingwood 24080 Hwy 59 North, Suite 200 281.318.4625 Bryan/College Station 2445 Harvey Mitchell Pkwy. S. 979.260.2134 Odessa 3555 Billy Hext Road 432.367.8912 San Angelo 222 S. Koenigheim Street 325.659.5987 Stephenville 2201 W. South Loop 254.918.6262 Sweetwater 201 Elm Street 325.235.6644 First Financial Bankshares Footprint | Annual Report 2023 | 20 First Financial Bankshares Footprint | Annual Report 2023 | 21 FINANCIAL HIGHLIGHTS IN THOUSANDS (except for share data) IN THOUSANDS (except for share data) FOR THE YEAR Net Income 2023 2022 % INCREASE AT YEAR-END 2023 2022 % INCREASE $198,977 $234,475 (15.14%) Assets $13,105,594 $12,974,066 1.01% Diluted Earnings (PER SHARE) $1.39 $1.64 (15.24%) Securities $4,732,762 $5,474,359 (13.55%) Dividends Declared $101,396 $94,205 Dividends (PER SHARE) $0.71 $0.66 7.63% 7.58% Loans, HFI Deposits $7,148,791 $6,441,868 10.97% $11,138,300 $11,005,507 1.21% KEY RATIOS Return On Avg. Assets Return On Avg. Equity Year-End Equity/Assets Efficiency 1.55% 14.99% 11.44% 47.26% 1.76% 16.72% 9.76% 42.80% Shareholders’ Equity $1,498,900 $1,265,737 18.42% Book Value Per Share $10.50 $8.87 18.38% Trust Assets (Book Value) $7,549,787 $6,927,335 8.99% Trust Assets (Market Value) $9,781,326 $8,754,948 11.72% NET INCOME (in thousands) AVERAGES - FOR THE YEAR 2019 $164,812 2020 $202,034 2021 $227,562 2022 $234,475 2023 $198,977 Assets Securities Loans Deposits $12,861,262 $13,286,671 (3.20%) $5,098,043 $6,318,806 (19.32%) $6,784,352 $5,923,594 14.53% $10,820,730 $11,019,523 (1.80%) Shareholders’ Equity $1,327,827 $1,402,104 (5.30%) RETURN ON AVERAGE EQUITY EFFICIENCY RATIO 2019 14.37% 2020 12.93% 2021 13.31% 2022 16.72% 2023 14.99% 2019 48.61% 2020 45.49% 2021 45.84% 2022 42.80% 2023 47.26% 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) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $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 $13,102,461 $1,759,224 $227,562 $1.59 $12,974,066 $1,265,737 $234,475 $1.64 $13,105,594 $1,498,900 $198,977 $1.39 $0.28 $0.31 $0.35 $0.38 $0.41 $0.47 $0.51 $0.58 $0.66 $0.71 Ten-Year Compound Growth Rate 8.40% 8.20% 8.31% 7.10% 9.76% Adjusted for stock dividends and splits STOCK DIVIDENDS AND SPLITS 2/1 split – – – – 2/1 split – – – – – YEAR-END BOOK VALUE (PER SHARE) YEAR-END MARKET VALUE (PER SHARE) $5.32 $6.10 $6.34 $6.97 $7.77 $9.03 $14.94 $15.09 $22.60 $22.53 $28.85 $35.10 $11.80 $36.17 $12.34 $50.84 $8.87 $34.40 $10.50 $30.30 7.04% 7.33% 2023 COMMON STOCK MARKET VALUE AND DIVIDEND DATA NET INTEREST MARGIN QUARTER HIGH LOW CLOSE DIVIDENDS Fourth Third $31.58 $22.84 $30.30 $0.18 $33.06 $22.86 $25.12 $0.18 Second $32.26 $25.01 $28.49 $0.18 First $38.24 $27.54 $31.90 $0.17 2019 3.98% 2020 3.79% 2021 3.40% 2022 3.34% 2023 3.29% 2022 COMMON STOCK MARKET VALUE AND DIVIDEND DATA RETURN ON AVERAGE ASSETS QUARTER HIGH LOW CLOSE DIVIDENDS Fourth Third $46.08 $32.53 $34.40 $0.17 $47.26 $38.72 $41.83 $0.17 Second $45.02 $37.47 $39.27 $0.17 First $53.62 $44.09 $44.12 $0.15 2019 2.08% 2020 1.98% 2021 1.89% 2022 1.76% 2023 1.55% Financial Highlights | Annual Report 2023 | 22 Financial Highlights | Annual Report 2023 | 23 Abilene | Clyde | Moran | Albany | Odessa | Eastland | Ranger | Rising Star | Cisco | Sweetwater | Merkel | Trent | Roby ABILENE REGION “We are proud to report that the Abilene Region had one of the strongest years of loan growth in recent history, with loans expanding by 15.3%. Total deposits grew by 8.4%, and we far exceeded our net new account growth goal for the year, ending with more than 2,800 net new accounts. Other highlights of the year included the origination of 123 loans that provided new homes in our low-income neighborhoods. The bank was also involved in financial literacy classes with the following organizations: Abilene Housing Authority, Big Country Re-entry Coalition, Ambler Baptist Church, Faithworks of Abilene, and Wealth Empowers the People. With the recent passage of the $52 million bond, our community is poised for transformative growth. The infusion of funds promises not only infrastructural enhancements but also heightened economic activity, paving the way for prosperity. Additionally, the burgeoning success of our school districts serves as a beacon of educational excellence, attracting families and businesses alike. As Abilene thrives, so does First Financial Bank, committed to fostering financial stability and growth for all. In the Sweetwater division of our region, residents voted in favor a $49.5 million school district bond to provide a new high school Career Technology Education center and gym complex, tennis court relocation, roof repairs and replacements, and increased security and safety. Sweetwater also added several new homes in the recently completed Creekside Addition and welcomed several new retailers to the community. Our Eastland division welcomed several new restaurants in 2023. The manufacturing sector remains a strong contributor to the local economy, and new home construction is underway in two new residential neighborhoods. First Financial Bank of Eastland also participated in financial literacy education for Ranger College students.” Eastland Senior Officers Candi Kanady President, Eastland Division Derrick Saucedo Senior Vice President Senior Relationship Manager Eastland Division Directors Candi Kanady President, Eastland Division Marelyn Shedd President, Abilene Region Jim Farrar Attorney *Lead Director Jim Keffer President EBAA Iron Sales, Inc. Devin Koenig Owner and CEO Plexus Healthcare Jim Moylan, Jr. Vice President Motec, Ltd. Russ Thomason Attorney CANDI KANADY President, Eastland Division EASTLAND OFFICE 201 E. Main St. Eastland, TX 76448 | 254.629.6100 RONALD D. BUTLER II Chairman and CEO, Abilene MARELYN SHEDD President, Abilene ABILENE MAIN OFFICE 400 Pine St. Abilene, TX 79601 | 325.627.7200 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2022 $4,135,986 $1,497,188 $3,195,695 $65,025 Dec. 31, 2023 $4,227,231 $1,726,726 $3,464,682 $52,502 1.58% 1.29% 38.73% 45.06% Abilene Senior Officers Ronald D. Butler II Chairman and CEO Marelyn Shedd President Kyle Seaton Executive Vice President Director of Corporate Treasury Marshall Morris Executive Vice President Senior Relationship Manager Patty Fuentes Executive Vice President Chief Operations Officer Evan Harris Executive Vice President Real Estate Banking Abilene Regional Board of Directors Janet O’Dell Executive Vice President Mortgage Lending Dayton Borger Senior Vice President Vanessa Faz Senior Vice President Jim Goldston Senior Vice President Landon Hammond Senior Vice President Brad Magers Senior Vice President Shay Minor Senior Vice President Patricia Patlan Senior Vice President Corie O’Connor Senior Vice President Ryan Parrish Senior Vice President Fernando Quintana Senior Vice President Steve Waller Senior Vice President Ronald D. Butler II Chairman and CEO Marelyn Shedd President Katie Alford President and CEO Community Foundation of Abilene Paul Cannon Shareholder President, McMahon, Surovik, Suttle, P.C. David L. Copeland President, Sipco, Inc. and Shelton Family Foundation Mark Colman President Rentech Boiler Systems Inc. Joe Crawford President Abilene Aero, Inc. Mike Denny President Batjer and Associates Murray Edwards Principal The Edwards Group Abilene Region | Annual Report 2023 | 24 Geoff Haney Investments *Lead Director Brad Holland President and CEO Hendrick Health System Kirk Massey Investments Stanley Morris, Jr. Investments Tyler Sitzes President Sitzes Real Estate Holdings, LLC Leigh Taliaferro, M.D. Physician Anthony Williams Executive Director of Intercultural Engagement & Belonging Abilene Christian University Sweetwater Senior Officers Joseph Crouch President, Sweetwater Division Thea Hernandez Senior Vice President Justin Rosson Senior Vice President Debbie Anthony Senior Vice President Justin Holland Senior Vice President Sweetwater Division Directors Joseph Crouch President, Sweetwater Division Marelyn Shedd President, Abilene Region Donna J. Boatright Healthcare and Quality Consultant Jeff Branson General Partner Williamson-Branson Real Estate Jay Lawrence President MAL Enterprises, Inc. *Lead Director Larry May Partner May & Hrbacek CPAs Thomas L. Rees, Jr. Rees, Rees, & Fuller Attorneys Cheyenne Smith Managing Member West Texas Rock Resources, LLC JOSEPH CROUCH President, Sweetwater Division SWEETWATER OFFICE 201 Elm St. Sweetwater, TX 79556 | 325.235.6600 Eastland and Sweetwater Divisions | Annual Report 2023 | 25 Bryan | College Station | Franklin BRYAN/COLLEGE STATION Cleburne | Burleson | Alvarado | Midlothian | Waxahachie CLEBURNE REGION “Our region experienced growth in many areas in 2023 and made several pivotal moves to enable us to accomplish future goals. We opened our new offices on Harvey Mitchell Parkway South in College Station, where we moved trust, mortgage, commercial lending, and retail services. With this move, we had the strongest new account growth we have seen, surpassing our best year by 116% as a region, with 26% of this growth coming from our new Harvey Mitchell location. We recruited the premier mortgage team in the Bryan/College Station area to ensure we have the resources and expertise to serve our growing communities. Since joining, they have brought new customer referrals, contributing to our annual growth. We converted our Robertson County loan production office into a full-service branch on the square in downtown Franklin, adding a strong retail team and the two best lenders in the Robertson County area. This location quickly brought in deposits and new accounts. First Financial Bank of Bryan/College Station was proud to receive The Eagle Reader’s Choice awards for Best Bank/Credit Union and Best Place to Work. The stability and strength of our company’s balance sheet and our treasury management resources have positioned us well for future growth. I am excited about 2024 in Bryan/College Station. We have the right front-line lenders and retail teams behind us to be successful.” “Our Credo states that we are professional bankers building relationships and serving our communities. In 2023 the Cleburne Region made more than 1,600 small business and consumer loans in Johnson and Ellis Counties. Many of these loans were made to first-time home buyers who will go on to purchase goods in the communities, pay taxes, serve on local charitable organization boards, and ultimately make a positive contribution to our communities. Our customers generously rewarded our efforts by naming Kim Hamilton the Best Loan Officer in Johnson County. Kim Hamilton celebrated her 40th anniversary with the bank in May 2023. With tenured leaders like Kim, it is no surprise First Financial Bank won Best Place to Work in Johnson County! As more families move to North Texas, both Johnson and Ellis Counties have seen tremendous growth. We are fortunate to have wonderful clients who recognize the importance of partnering with a local bank. One of those partners in Ellis County, Elmwood Homes, named First Financial and Alecia Bland Bank of the Year. We are trusted. This simple statement is the basis for number 19 of our 21 Non- Negotiables, which we review company-wide daily. This statement and belief allowed First Financial Bank to emerge from the challenges the financial industry faced in the first quarter of 2023. Trust is not freely given and is a culmination of action over time. It is our pleasure to serve YOU, our customers, today and in the future.” AUSTIN ELSNER Chairman, President and CEO MAIN OFFICE 200 N. Ridgeway Dr. Cleburne, TX 76033 | 817.202.3156 NORA THOMPSON President and CEO MAIN OFFICE 2445 Harvey Mitchell Pkwy. S. College Station, TX 77840 | 979.260.2100 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS Dec. 31, 2022 $989,421 $483,610 $732,859 Dec. 31, 2023 $1,014,522 $482,983 $769,368 $15,439 $10,811 1.45% 1.12% EFFICIENCY RATIO 40.59% 53.20% IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2022 $808,458 $317,372 $724,481 Dec. 31, 2023 $912,976 $358,071 $818,903 $11,373 $9,332 1.51% 1.22% 45.94% 50.48% Senior Officers Timothy N. Bryan Chairman Nora Thompson President and CEO Jerry E. Fox Executive Vice President Chief Operations Officer Austin W. Bryan Executive Vice President Senior Relationship Manager J. Cal McNeill Executive Vice President Melanie N. Motley Senior Vice President Justin Kleiber Senior Vice President Robert Olivarez, Jr. Senior Vice President Justen Salcido Senior Vice President Dell Seiter Senior Vice President Mortgage Lending Regional Board of Directors Timothy N. Bryan Chairman of the Board *Lead Director R. Sid Cauthorn President Westex Bancorp Nora Thompson President and CEO Brian Barrett President Kurten Farms, Ltd. Ronnie L. Craig Shareholder Thompson, Derrig & Craig CPAs Bobby Gutierrez President Gutierrez Ventures, Inc. Lawrence B. Hodges Jr. President H&B Investments, LP Sarah Miller Broker Engel & Volkers, BCS William L. Rayburn, M.D. Chair, Baylor Scott & White Holdings hysician Executive Advisor, College Station Region Charles A. Ellison Attorney at Law President and Founder, The Ellison Law Firm Stephen Lee South Texas Area Banking Executive Senior Officers Austin Elsner Chairman, President and CEO Russell Phillips Executive Vice President Chris Schjetnan Executive Vice President Regional Board of Directors Jaye Weishuhn Senior Vice President Chief Operations Officer Alecia Bland Senior Vice President Kim Hamilton Senior Vice President Max Price Senior Vice President John Saenz Senior Vice President Stacey Sloan Senior Vice President Austin Elsner Chairman, President and CEO Ronald D. Butler II First Financial Bankshares, Inc. Cathy Altman Partner Carrington Coleman, LLP Ray Beavers President Ray Beavers Consulting, LLC Robert Childress III Owner Childress Engineers Mark Hill Utility Construction Consultant Tim Lyness Co-Owner Lyness Construction, LP *Lead Director Marcus Morris President and CEO Fort Worth Region Jack Scott Partner Bell-Scott Insurance Group George Williams, Jr. Williams & Williams Chicken, LLC Bryan/College Station Region | Annual Report 2023 | 26 Cleburne Region | Annual Report 2023 | 27 Conroe | Montgomery | Magnolia | Willis | Tomball | Cut and Shoot | Huntsville | New Waverly | Spring CONROE REGION FORT WORTH REGION “The Conroe Region is proud to have gained market share in 2023. We generated more than $200 million in new loan production over the year, and new account growth has remained strong. Montgomery and Walker Counties are among the fastest-growing areas in Texas and the nation. Our local school districts are growing at a rapid pace, with Conroe Independent School District planning eight additional schools for 2024. The City of Conroe, in a joint venture with Hyatt, opened a new 250-key Hyatt Regency, with 38,000 square feet of meeting room space. Further, at least five master planned communities are being developed in the area. We are extremely proud of the growth in our ITIN (Individual Tax Identification Number) and Affordable Home Mortgage Programs to help finance homes in our low-income neighborhoods. We have partnered with the Montgomery County Hispanic Chamber of Commerce and the National Association of Hispanic Real Estate Professionals to facilitate our success. Further, we have hosted numerous events educating realtors and potential home buyers to assist in their dreams of home ownership. With the dedicated and professional bankers here serving our community, we are excited about 2024. Our Conroe team lives out our 21 service Non- Negotiables every day.” “Each morning before the doors open, our Fort Worth team gets together to remind each other of our vision, mission, and 21 Non-Negotiables that guide everything we do. These meetings are not just so we can check a box — they have become part of the fabric of who we are. As Fort Worth and Tarrant County continue their rapid growth, our team continues to deliver our way of banking. There has never been a more exciting time to be in Fort Worth, and we are delighted to be in the middle of all the excitement! Over 2023, we made tremendous progress towards becoming the undisputed leader in the financial industry (our vision). Our ITIN and Affordable Home Loan Programs continue to put First Financial Bank on the map as a leader in our market. Since rolling out these programs, we have originated 175 loans for more than $42 million, putting many families in their first homes. We are committed to leadership surrounding affordable housing in DFW. During 2023, other banks in our market were forced to the sidelines due to rapid interest rate hikes by the Federal Reserve. Naturally, this had an impact on business owners, investors, and residents. The Fort Worth Region, with the help of our local board members, used this uncertainty in the market as an opportunity to prove we have something different to offer. Our service philosophy of exceeding our customers’ expectations resulted in more than 500 net new accounts across all of Fort Worth. Our bankers were ready to serve our community as they made $245 million in new loans, with an average loan size of $297 thousand. These loans were spread across our entire community to help families buy their first homes, businesses grow, and support investors who were making meaningful impacts in Fort Worth.” MARCUS MORRIS President and CEO MAIN OFFICE 1000 Forest Park Blvd. Fort Worth, TX 76110 | 817.410.4970 CHRIS BAUGHMAN President and CEO MAIN OFFICE 1800 W. White Oak Terrace Conroe, TX 77304 | 936.760.1888 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2022 $1,053,764 $601,396 $893,098 Dec. 31, 2023 $1,030,728 $631,936 $875,589 $15,910 $16,172 1.56% 1.53% 45.28% 48.00% Dec. 31, 2022 $405,277 $398,247 $154,869 Dec. 31, 2023 $501,301 $494,757 $154,586 $5,025 $3,535 3.40% 2.13% 39.89% 52.26% Senior Officers Chris Baughman President and CEO Lee Warren Executive Vice President Chief Operations Officer G. Bart Griffith Executive Vice President Senior Relationship Manager Bobby Brennan Senior Vice President Mortgage Lending Guy Barker Senior Vice President Billy Brannon Senior Vice President Fernando Castellanos Senior Vice President Cody Sundbeck Senior Vice President Jamie McBee Senior Vice President Stephen Lee Weaver Senior Vice President Carissa Parker Senior Vice President Kyle Whisenhunt Senior Vice President Senior Officers Marcus Morris President and CEO Carley Dyck Executive Vice President Chief Operations Officer Regional Board of Directors Regional Board of Directors David Moor Executive Vice President Matthew Sylvia Executive Vice President Craig Zemarkowitz Executive Vice President Hesper Derrick Senior Vice President Pamela Terry Senior Vice President Sam W. Baker Chairman of the Board Chris Baughman President and CEO Donnie Buckalew Owner Buckalew Chevrolet Shelley Dacus President and CEO Kingwood Region Chris deMilliano Operations Manager Steely Lumber Company *Lead Director Candyce F. Dixon CPA Dan Dominey Owner DBD Interests Robert C. Ernst Jr. Owner Ernst Jewelers Stephen Lee South Texas Area Banking Executive Randy Roan Owner Commercial Construction John Sebastian President Conroe Golf Cars Curtis Montgomery, M.D. Physician Robert Pate Retired President First Financial Bank, Huntsville Johnny Peet Jr., M.D. Physician Woodlands Gynecology & Aesthetics PLLC Vianei Lopez Braun Chair of the Board Chief Development Officer Decker Jones, P.C. *Lead Director Marcus Morris President and CEO Larry Anfin K&L Enterprises, Inc Smith A. Brownlie III CPA and Co-Founder Brownlie & Braden Ronald D. Butler II First Financial Bankshares, Inc. Mary Lee Cruz Retired Murray Edwards Principal, The Edwards Group Susan Miller Gruppi Co-Founder M2G Ventures Tim Lyness Co-Owner Lyness Construction, LP Matt Morris Area President HUB Fort Worth Hub International Texas Mitchell J. Moses Partner Duane Morris LLP Conroe Region | Annual Report 2023 | 28 Fort Worth Region | Annual Report 2023 | 29 HEREFORD REGION Kingwood | El Campo | Fulshear | Palacios KINGWOOD REGION “The Hereford team was responsive and adaptable in 2023, stepping up when the community needed us most. Our region grappled with unprecedented rainfall in 2023, leading to severe flooding in the Texas Panhandle. A significant downpour in June submerged many areas of the community and several local feedyards, leaving cattle stranded. Quick action from community leaders and local cowboys to rescue cattle played a critical role in protecting peoples’ livelihoods. Our dedicated and professional bankers supported the recovery efforts by partnering with the Red Cross to help provide essential supplies to those impacted and meals to volunteers. Throughout the year, our region embraced numerous opportunities to meet challenges head-on. Our continued focus on our ITIN and Affordable Home Loan programs, offering customers a path to realize their homeownership dreams with reduced down payments and flexible term options. We take pride having originated more than $63 million in new loans, resulting in the substantial growth of our loan portfolio by more than $16 million. Our community looks forward to new development in 2024. A state-of-the-art $6.5 million outdoor multi-use sports complex is under construction in Hereford and is anticipated to be completed by mid-2024. This facility is poised to become a premier tournament destination for baseball and softball teams across the Texas Panhandle and beyond. Our gratitude extends to our customers who honored us with the title of Best Bank in Deaf Smith County for 2023 and recognized us for serving the Best Complimentary Cup of Coffee. With the ongoing expansion of our region, First Financial Bank eagerly anticipates opportunities in 2024 to offer the best service to our customers and community.” “In 2023, the Kingwood Region demonstrated robust performance, marked by remarkable loan growth that significantly contributed to our earnings. The region’s expansive footprint covering Kingwood, Fulshear, El Campo, and Palacios provides tremendous opportunity stretching across the greater Houston area. The region’s many successes and achievements are attributable to our loyal customers, dedicated professionals, and active board members. Our surge in account acquisitions stands as a testament to our commitment to expanding our client base and fostering enduring relationships with our communities. The El Campo office produced the strongest loan and account growth in El Campo’s history. The bank’s focus on ITIN and Affordable Home Loan lending has been successful in highlighting our dedication to meeting the diverse financial needs of our communities. Realtor engagement and educational presentations have helped First Financial Bank in serving underbanked areas. Many of the suburbs around our branches are vibrant and sought-after residential hubs. Fulshear/South Brookshire/Simonton communities were nationally recognized for the greatest percentage of home purchases in 2023. Kingwood was rated the second friendliest American neighborhood by All Star Home. Palacios ISD is nearing completion of its two new schools serving K-12. El Campo-based MidCoast Health system expanded in Trinity, TX. Over the past two years, the Houston region has set records for job growth, construction starts, sales tax collections and port traffic. The region continued to create jobs and attract business from across the globe. Energy transitions and consolidations by the major oil companies will be a positive for 2024. The region has strong potential for companies and professionals seeking a thriving ecosystem conducive to both personal and professional success.” SHELLEY DACUS President and CEO MAIN OFFICE 24080 Hwy 59 N. Kingwood, TX 77339 | 281.318.4600 HEREFORD OFFICERS 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 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2022 $219,534 $151,794 $174,287 Dec. 31, 2023 $184,726 $171,050 $149,609 $6,397 $3,860 3.07% 2.00% 43.81% 43.13% Dec. 31, 2022 $621,737 $547,389 $519,550 Dec. 31, 2023 $603,553 $672,585 $494,232 $12,830 $14,224 1.90% 2.39% 38.49% 40.76% Senior Officers Robert de la Cruz Executive Vice President Senior Relationship Manager Carley Dyck Executive Vice President Chief Operations Officer Johnathan Jeter Vice President Zach Lauer Vice President Devi Veliz Vice President Regional Board of Directors Ronald D. Butler II First Financial Bankshares, Inc. Michael Carlson Farmer/Rancher, C Bar 2 Cattle Steve Lewis, D.V.M. Consulting Veterinarian Hereford Veterinary Clinic Sally Noyce Human Resources Manager Panhandle Express, LLC Johnny E. Trotter President and CEO Livestock Investors, Ltd. *Lead Director Mike Mauldin Director, Excellence in Banking Texas Tech University Jerry Stevens Owner, Stevens 5-Star Car and Truck Center Senior Officers Shelley Dacus President and CEO Jeff Fuechec Executive Vice President Market President, El Campo Lee Warren Executive Vice President Chief Operations Officer James Alexander Executive Vice President Senior Relationship Manager Regional Board of Directors Robert C. Nickles Jr. Chirman of the Board Founder, Executive Chairman Alegacy Group, LLC *Lead Director Shelley Dacus President and CEO Chris Baughman President and CEO Conroe Region Michael Gonzalez Principal The Gonzalez Group Brian Bonner Executive Vice President Keith Arrighetti Senior Vice President Nancy Powell Senior Vice President Brandon Zabodyn Executive Vice President Isaias Machica Senior Vice President Anita Rod Senior Vice President Stephen Lee South Texas Area Banking Executive Angela Leviner Vice President PAL Realty Inc. Adam McAlpine Owner and President McAlpine Interests Lance McIntyre President DMAC Construction & Development, Inc. Blake Poutra Managing Partner & Principal Big Enrichment Rebekah Shipman President & CEO Reservoir Data System Hereford Region | Annual Report 2023 | 30 Kingwood Region | Annual Report 2023 | 31 SAN ANGELO REGION Orange | Vidor | Mauriceville | Newton | Port Arthur | Beaumont | Lumberton SOUTHEAST TEXAS REGION “The San Angelo region enjoyed continued momentum in 2023. We had increased loans, deposits, and net new accounts. We were extremely proud of the growth, as all banks focused on deposit growth and increased liquidity. The latest deposit share report for Tom Green County shows the San Angelo region in the top spot with 33.48% of the total market share, which is up from 30.19% in 2022. San Angelo is experiencing economic growth, which will continue as the I-14 and I-27 interstate projects advance and gain traction. Several new and exciting community projects were completed or began construction during the year. Shannon Medical Center completed its Oncology Center. Two local technology companies purchased the old Sitel building, which is being converted into class A office space under the new name, Technology Towers. Skyline Aviation began rehabilitating the old GTE hanger at the San Angelo Airport to house a new first- class private jet terminal and flight training school for the Angelo State University commercial aviation program. It’s an exciting time to serve San Angelo’s banking needs. We partnered with local businesses and organizations to provide financial education for the community. In October, we joined Angelo State University and Cyber Texas to host a cybersecurity and fraud awareness seminar. Another exciting event was a partnership with the newly formed Minority Alliance Network Organization to host and teach credit classes for their membership. The bank is participating in two residential lot developments located in underserved areas of San Angelo, which will provide new affordable housing options. We continued to focus on our programs to increase the number of home loans financed in predominantly minority neighborhoods. We stand ready to finance these homes with our VA and FHA, secondary market, in-house, ITIN and Affordable Home Loan programs.” “In 2023, our region capitalized on opportunities created by a vibrant regional economy and the opening of our newest branch in Lumberton, Texas, which has surpassed all expectations, delivering record-setting growth in its first year. The branch has successfully captured a significant market share, attracting both personal and business customers by generating innovative banking solutions and successfully executing our Customer Service First philosophy. Throughout the year, our region has experienced steady growth in loan and deposit portfolios. By effectively managing credit risk and maintaining strong relationships with our customers, we have achieved solid loan growth across various sectors, including commercial, real estate, and consumer loans. Additionally, our deposit base has expanded, reflecting the trust and confidence our customers have placed in us and a relentless regional focus on this crucial funding source for our business. We have successfully improved the bank’s net interest margin by implementing cost-effective strategies and optimizing our asset allocation. Our focus on risk-adjusted pricing and winning lower-cost deposits has contributed to this margin enhancement, enabling the bank to achieve a healthy balance between risk and return. We are delighted to announce new leadership appointments. Blaine Caillier has been promoted to the position of President of our Southeast Texas Region. With his exceptional leadership skills, extensive industry experience, and deep understanding of the local market, we are confident that Blaine will drive further growth in our region. Additionally, we promoted David LeJeune as our new Mid County Market President. David’s proven track record in relationship management, business development, and community engagement makes him the ideal candidate to strengthen our presence in the Mid County area and enable us to better serve the financial needs of our customers.” STEPHEN LEE Chairman and CEO BLAINE CAILLIER President MAIN OFFICE 912 N. 16th St. Orange, TX 77630 | 800.300.8904 CHRIS EVATT Chairman, President and CEO MAIN OFFICE 222 S. Koenigheim St. San Angelo, TX 76903 | 325.659.5900 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2022 $1,116,134 $326,196 $979,710 Dec. 31, 2023 $1,147,360 $331,799 $1,009,224 $16,974 $13,197 1.54% 1.16% 35.15% 42.90% Dec. 31, 2022 $945,940 $633,436 $802,914 Dec. 31, 2023 $1,012,947 $696,539 $862,824 $19,841 $18,073 2.03% 1.82% 39.22% 40.05% Senior Officers Chris Evatt Chairman, President and CEO Orlando Lara Senior Vice President Luke Uherik Executive Vice President Senior Relationship Manager Wes Masters Senior Vice President Mortgage Lending Senior Officers Stephen Lee Chairman and CEO David LeJeune Market President, Mid County Blaine Caillier President TJ Lingle Market President, Hardin County Joe Love Executive Vice President Senior Relationship Manager Lee Warren Executive Vice President Chief Operations Officer Kim Dickerson Senior Vice President Rebecca Doucet Senior Vice President Regional Board of Directors Regional Board of Directors Chris Evatt Chairman, President and CEO Liz Albert Attorney Beesley & Albert, PLLC Ana Artecona Vice President and Chief Financial Officer The Housley Group Ronald D. Butler II First Financial Bankshares, Inc. Ronnie Hawkins President, Angelo State University CEO, Hawkins Group Steve Eustis Commercial Real Estate *Lead Director Reagon Noble, D.D.S., M.S. Noble McClintock Orthodontics Mary Jane Steadman Attorney, Real Estate Investment Management Stephen Lee Chairman and CEO Dr. Snehal Doshi CEO Millennium Medical Group John Gothia County Judge Orange County, Texas Chad Mason Vice President Mason Construction Carlos Rodriguez Attorney Webb, Stokes and Sparks Ronald D. Butler II First Financial Bankshares, Inc. Dayna Simmons CEO/Broker Dayna Simmons Real Estate *Lead Director Jim Gilliam Partner and Chairman, The HT Group Owner and CEO, Bates & Co. Jessica Hill CEcD Vice President Entergy Texas, Inc. Dr. Ray Callas Managing Partner Anesthesia Associates, PLLC Gary Gragg Retired First Financial Bankshares, Inc. San Angelo Region | Annual Report 2023 | 32 Cindi LaChance Senior Vice President Mortgage Lending Lani White Senior Vice President Connie Browning Senior Vice President Kevin Williams President Cypress Bayou Industrial Jim Wimberley Attorney Law Offices of Jim Wimberley Southeast Texas Region | Annual Report 2023 | 33 Southlake | Trophy Club | Keller | Bridgeport | Boyd | Decatur | Grapevine SOUTHLAKE REGION Stephenville | Granbury | Glen Rose | Acton STEPHENVILLE REGION “2023 was such an impactful year for the Southlake Region. To witness our employees serve our customers and communities with passion and purpose is powerful. Their willingness to selflessly serve others is exemplified in so many ways and through various civic avenues. One of my personal favorites is when we all serve together in our annual bike build, assembling bicycles for underprivileged children in our surrounding communities on our annual Day of Service. Because of their continued commitment to service, our region and employees are continually recognized for their many contributions. From a 40 Under 40 recipient, to a Citizen of the Year winner, to being recognized as the Best Bank in Tarrant County for the 10th year in a row by Society Life, our team continues to exceed expectations both in the office and in the areas we so thankfully serve. The opportunity to be part of the Southlake Region team is humbling and a joy. Our continued commitment to excellence is vital as northeast Tarrant County continues to serve as a bright spot in the Texas economy overall and a bright spot for our bank, more specifically. With growth throughout the region, our employees performed admirably, delivering solid net income, meaningful loan growth, strong credit quality, and an increase in net new accounts. Each of these milestones helped foster a truly successful 2023 and allow us to look forward to 2024 with eager anticipation of what the future holds for our Southlake Region.” “First Financial Bank is well positioned for opportunity in the growing communities of Stephenville, Granbury, and Glen Rose. The entire Stephenville Region continues to benefit economically from Tarleton State University’s growth. Tarleton reached record enrollment for the fourth-consecutive year while finalizing its transition into Division-I athletics and breaking ground on new buildings. As one of the company leaders in net new account growth, the Stephenville Region continues to build new consumer and business relationships as people relocate to rural Texas. Granbury is preparing for the addition of Lakeview Landing, a planned development consisting of multi-family units, single-family lots, senior living, retail, restaurants, and a hotel. The new runway expansion at Granbury Regional Airport became fully operational this year, and construction of a new private jet terminal is coming soon. Lake Granbury Medical Center recently broke ground on a $15 million emergency facility with completion expected in mid-2024. To fulfill a growing need for housing in the popular Glen Rose ISD, two large residential developments were introduced to Somervell County in 2023. The added population growth has attracted new restaurants. Our employees serve as civic leaders in our vibrant, local communities. First Financial Bank of Stephenville was again recognized in the Stephenville Empire Tribune’s Best of Erath Awards as Best Bank and Best Mortgage, and Trent Tidwell was awarded Best Loan Officer. We recently partnered with Stephenville Economic Development Corporation (STEDCO) in a loan program designed to support small businesses. Our dedicated team continues to strengthen relationships through customer service with an educational emphasis on fraud prevention. We are also planning presentations on financial literacy at local schools in the coming year. Come see for yourself what is so attractive about rural living in and near the Cowboy Capital of the World.” TRENT SWEARENGIN Chairman, President and CEO MAIN OFFICE 2201 W. South Loop Stephenville, TX 76401 | 254.965.5036 SHELBY BRUHN 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 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Dec. 31, 2022 $1,028,601 $588,591 $925,166 Dec. 31, 2023 $950,760 $611,664 $840,501 $17,068 $14,097 1.64% 1.41% 40.59% 45.01% Dec. 31, 2022 $991,755 $374,959 $868,081 Dec. 31, 2023 $985,453 $398,652 $869,191 $13,671 $12,415 1.43% 1.24% 43.60% 47.13% Senior Officers Shelby Bruhn Chairman, President and CEO F. Mills Shallene Market President, Wise County Carley Dyck Executive Vice President Chief Operations Officer Isbet Najera Executive Vice President Senior Relationship Mananger Chris Cregger Senior Vice President Tracie Talkington Senior Vice President Senior Officers Trent Swearengin Chairman, President and CEO Bart Rodgers Market President, Granbury Blayne Baley Market President, Glen Rose Vickie Pettit Executive Vice President Chief Operations Officer Trent Tidwell Executive Vice President Senior Relationship Manager Doug Dobbins Senior Vice President Regional Board of Directors Regional Board of Directors Shelby Bruhn Chairman, President and CEO Ronald D. Butler II First Financial Bankshares, Inc. T. Mikal Darden President Greater Metroplex Interiors Inc. Martin W. Schelling Conifer Real Estate *Lead Director Terry Wilkinson Wyndham Properties, Ltd. Trent Swearengin Chairman, President and CEO Justin Culberson Culberson Construction, LLC Traci Bernard President Texas Health Southlake William Ray Cook, Jr., CPA Cook McDonald & Company J. Bruce Hildebrand, CPA Retired First Financial Bankshares, Inc. Berry White Attorney Berry White Law Firm, PLLC Keith Brown Prime Building Components, LLC Walter Hardin III Real Estate Investments Ronald D. Butler II First Financial Bankshares, Inc. Wendell Hollingsworth Industry and Economic Development West Jones Ranching and Investments Doug Montgomery Texstar Kubota, Inc. Ron Pack Ranching and Investments *Lead Director Southlake Region | Annual Report 2023 | 34 Stephenville Region | Annual Report 2023 | 35 Weatherford | Aledo | Willow Park | Brock | Mineral Wells WEATHERFORD REGION FIRST FINANCIAL MORTGAGE “Parker and Palo Pinto Counties have experienced fantastic growth over the last several years, and this is readily apparent with the number of new businesses and homes that are being opened or built. We are home to incredible schools and cities and offer a short commute to our larger neighbor of Fort Worth to the east. Aledo ISD is growing rapidly as subdivisions expand in East Parker County. Among its many accolades, Aledo High School just notched its 12th state football title in 2023. Parker County was ranked the 8th fastest-growing county in the nation according to the U.S. Census Bureau’s Vintage 2022 estimates. This growth has assisted our region in obtaining substantial new account growth and strong loan growth in 2023. Part of this loan growth has come as we have helped families moving to the area through our ITIN and Affordable Home Loan programs. Additionally, our region continues to be the market leader, ranking first in deposit market share with Parker and Palo Pinto Counties combined. The bedrock of our service culture starts with our 21 Customer Service Non- Negotiables that we commit to each and every day. It is this level of service that has contributed to our region being honored by the Weatherford Democrat in their Best of the Best issue for 2023. We were chosen as Best Bank and Best Mortgage Provider in both Parker and Palo Pinto Counties. Additionally, Amber Allen and Kathy Fowler were named Best Banker in Parker and Palo Pinto Counties, respectively. We look forward to 2024 with great enthusiasm and expectation. As Parker and Palo Pinto Counties continue to grow at a rapid pace, we stand ready to support both new and existing customers alike as they also grow, diversify, and enjoy all that this area of Texas has to offer.” The Texas housing market remains resilient and led the nation in new home construction in 2023. While demand for existing homes declined last year due to increased long-term fixed rates, those rates began to drop at year-end, which should lead to increased demand in 2024. Our mortgage team successfully assisted 1,319 individuals and families with their home financing needs in 2023, totaling $409 million in originations. We added a new team of seasoned mortgage professionals in our Bryan/College Station region. The team is led by Dell Seiter and is highly regarded and respected by the local real estate community. First Financial Mortgage is well positioned in growing markets throughout Texas, providing great opportunities for our lending team. Our team of mortgage professionals has a wide array of products to meet customers’ real estate needs. We are always ready to assist as you begin your homebuying journey. $1,319TOTAL LOANS 5CLOSINGS PER DAY AVERAGE $409 MTOTAL DOLLAR AMOUNT $310 K AVERAGE LOAN AMOUNT JUSTIN B. HOOPER Chairman, President and CEO MAIN OFFICE 101 College Park Dr. Weatherford, TX 76086 | 817.598.2600 IN THOUSANDS ASSETS LOANS DEPOSITS NET INCOME RETURN ON AVG. ASSETS EFFICIENCY RATIO Senior Officers Dec. 31, 2022 $1,351,417 $525,307 $1,158,883 Dec. 31, 2023 $1,309,710 $576,916 $1,101,866 $22,234 $16,436 1.65% 1.25% 39.76% 46.35% Senior Officers Justin B. Hooper Chairman, President and CEO Tim Corzine Market President - Mineral Wells Carley Dyck Executive Vice President Chief Operations Officer Amber Allen Executive Vice President Senior Relationship Manager Paul Bruns Senior Vice President Mike Davis Senior Vice President Jimmie Sue Lawson Senior Vice President Regional Board of Directors Justin B. Hooper Chairman, President and CEO Ronald D. Butler II First Financial Bankshares, Inc. Adam L. Feriend Owner and COO JRJ Construction, Inc. *Lead Director J. Bruce Hildebrand,CPA Retired First Financial Bankshares, Inc. Tracey Kirsch Former Director & CEO Electromedical Products International Mitchel Johnson Vice President of Operations Sacramento Energy Resources Kevin R. Lackey President & CEO 2662 Capital Stephen E. Milliken Former President C.D. Hartnett Company/ McLane Express, Inc. Mike White, O.D. Retired Therapeutic Optometrist Kerry Kelley President / Director Kerry Kelley, Inc. Troy Fore President Ryan Craig Executive Vice President Addison 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 Dell Seiter Senior Vice President Bryan/College Station Weatherford Region | Annual Report 2023 | 36 First Financial Mortgage | Annual Report 2023 | 37 FIRST TECHNOLOGY SERVICES, INC. LINE OF BUSINESS EXECUTIVES One of our primary focuses has been fraud prevention. In 2023, we invested in several enhancements to prevent bad actors from gaining access to user logins. These preventative measures had an immediate impact, reducing fraud and protecting customers’ personal information. We created a new loan payment experience that offers customers more payment options, making it easier and more convenient to schedule and make online loan payments. We delivered a new, more modern online and mobile banking dashboard, which is the foundation for ongoing enhancements as we continue to evolve the user experience. We also invested in infrastructure to deliver significant improvements to our online banking system’s stability. In 2024, we will continue to deliver and evolve security, authentication, and authorization technology to protect our customers and the bank. We are investing in state-of-the-art software and fintech solutions that will establish layers of protection, protecting customers and the bank well into the future. Senior Officers John Ruzicka Chairman, President and CEO Isabel Montoya Executive Vice President Deposit Operations Cynthia Suarez Executive Vice President Chief Information Security Officer Maggie Tuschinski Executive Vice President Chief Digital Officer David Weems Senior Vice President Chief Operations Officer Larry Williams Senior Vice President Technical Architecture Michael Greenhaw Senior Vice President Senior System Analyst Tony Vargas Senior Vice President Project Management Sammy Scott Vice President End-User Support Manager Laurinda Thomas Vice President Debit Card and Loss Prevention Supervisor Brad Walker Vice President Help Desk and Network Support Directors John Ruzicka Chairman, President and CEO First Technology Services, Inc. Executive Vice President and CIO First Financial Bankshares, Inc. April Anthony CEO, VitalCaring Group Managing Partner Anthony Family Investment Partners, LTD. Ronald D. Butler II Executive Vice President Chief Administrative Officer First Financial Bankshares, Inc. Chairman and CEO First Financial Bank, Abilene Region First Technology Services | Annual Report 2023 | 38 F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Carley Dyck Executive Vice President Chief Operations Officer First Financial Bank, Fort Worth Region First Financial Bank, Hereford Region First Financial Bank, Southlake Region First Financial Bank, Weatherford Region Ronnie Hawkins President, Angelo State University CEO, Hawkins Group Monica Houston Executive Vice President Training First Financial Bank Matthew Melbourne Executive Vice President Chief Operations Officer First Financial Trust & Asset Management Company Blake Poutra CEO McAlphine Interests Michelle S. Hickox Executive Vice President Chief Financial Officer First Financial Bankshares, Inc. Andrea Smiddy-Schlagel Executive Vice President Treasury Management First Financial Bank Trent B. Swearengin Chairman, President and CEO First Financial Bank, Stephenville Region Clay Trumble Senior Vice President Credit Administration First Financial Bank Lee Warren Executive Vice President Chief Operations Officer First Financial Bank, Conroe Region First Financial Bank, Kingwood Region First Financial Bank, Southeast Texas Region Marketing: The marketing team focused on new partnerships and incentives to drive awareness and customer engagement in 2023. We held promotions featuring country music star Aaron Watson and partnered with college athletes, including Behren Morton of Texas Tech University and Anthony Egbo Jr. of Abilene Christian University. We held contests to incentivize new accounts and deposits, including a tuition giveaway to support customers who are in college. Training: We focused on fraud prevention training in 2023. The retail frontline identified and prevented more than $4.9 million in fraudulent items presented in teller lines and lobbies. We also conducted FFIN University, a year-long program for mid-management leaders to teach them how to run a high-performing bank. Session topics included national economics, regulation and compliance, presentation skills, handling media inquiries, and professional etiquette. Retail: In 2023, we began developing a new platform that simplifies the account opening process, reducing a customer’s new account opening experience by at least 15 minutes. It offers a much more streamlined process for both the banker and the customer. Our bankers will now have time to build stronger relationships with customers to offer solutions for their financial needs. Treasury Manangement: We strengthened our suite of Treasury Management products for our business clients in 2023. We recognize that not one size fits all businesses, so we identified gaps and offered customizable products to meet clients’ unique needs. We also updated our international wire service and foreign exchange provider and added multi-currency accounts. Consumer Lending: Our team served more than 700 new customers in predominantly minority communities in 2023 through our Affordable Home Mortgage and ITIN programs, generating $140 million. These programs serve customers with $100,000 or less in household income or those who do not have a social security number. We also helped people take out home equity loans and offered a mortgage product that helps customers buy a home with no down payment. Human Resources: The Human Resources team has monitored the shifts in the labor market to ensure the company remains competitive. We implemented supplemental coverage that supports employees’ physical, mental, and financial well-being. We also launched a dedicated website to increase awareness of our company’s career opportunities for military veterans. Customer Care Center: In the past year, our customer care center managed almost 1.1 million inbound calls and made 275,000 outbound calls to customers. We have undertaken two projects to fortify our fraud prevention measures. The first initiative verifies that a call is coming from the device that owns the number. Our second project implements voice biometrics technology, which involves unique voiceprint identification. These solutions help safeguard customers and our organization against evolving threats. Appraisal Services: Despite unusual volatility in the real estate market in response to interest rate changes, the Appraisal Department focused on delivering reliable valuations to aid customers in their real estate investment decisions. The credibility of our real estate valuations is essential during periods of fluctuating market conditions. We look forward to increased momentum in 2024. Property Management: Our property management team led construction on two new branches and two branch remodels in 2023. We opened new branches in Huntsville and College Station, and we remodeled our Trophy Club and Vidor branches. Construction is underway on a new branch on Highway 21 in College Station, set to open in late spring of 2024. Megan Dobbs Executive Vice President Advertising and Marketing Monica Houston Executive Vice President Training Lori Hill Executive Vice President Retail Banking Andrea Smiddy-Schlagel Executive Vice President Treasury Management Michael Wolverton Executive Vice President Consumer Lending Josh Brown Senior Vice President Human Resources Brandon Harris Senior Vice President Appraisal Services Gary Milliorn Vice President Property Manager Line of Business Executives | Annual Report 2023 | 39 Abilene | Beaumont | Bryan/College Station | Fort Worth | Kingwood | Odessa | San Angelo | Stephenville | Sweetwater FIRST FINANCIAL TRUST & ASSET MANAGEMENT COMPANY "First Financial Trust & Asset Management Company delivered excellent results in 2023. Total assets under management at year-end had a book value of $7.5 billion, a 9% increase from $6.9 billion at the end of 2022. The market value of the assets totaled $9.8 billion, a gain of 11.7% from $8.8 billion. For the year, total fee income increased 1.2% to $40.5 million from $40 million in 2022, and net earnings after tax increased 3.7% to $21.6 million from $20.9 million. For the year, our revenue from oil and gas management totaled $6.2 million. This was $1.2 million less than in 2022 but still stands out as the second-best year for mineral management revenue by over $1.4 million. The trust company’s investment performance was outstanding. All of our equity portfolios outperformed their respective benchmarks. The best performing portfolio was our Strategic Growth portfolio which had a return of 51.5%, followed by our Core portfolio which had a return of 29%. Both our taxable and tax-free bond portfolios had excellent returns of 7.2% and 5.3%, respectively, also outperforming their benchmarks. We continue to have good growth in our newest markets in Beaumont, Kingwood, and Bryan/College Station. Our Beaumont office now has assets under management exceeding $305 million, with Kingwood and Bryan College Station at $193 million and $255 million, respectively. Our Bryan/College Station office achieved profitability this year with net income of $132 thousand, an increase over 2022 of $242,000. Our pipelines continue to look very promising for excellent growth in these markets going forward." Trust Office Managers Lon Biebighauser Regional President Abilene Konrad S. Halbert Regional President Fort Worth David Castleberry Executive Vice President Stephenville Wayne Chowning Executive Vice President Sweetwater KIRK W. THAXTON Chairman, President and CEO First Financial Trust Trust Assets - Book Value (in millions) 2019 2020 2021 2022 2023 $4,856 $5,398 $5,880 $6,927 $7,550 Trust Net Income (in thousands) 2019 $13,892 2020 2021 2022 2023 $14,471 $17,723 $20,857 $21,624 Trust Fees (in millions) 2019 $28.40 2020 $0 2021 2022 2023 $29.53 $36.15 $40.00 $40.46 40 27 Sweetwater 20 Abilene 35 Fort Worth Stephenville 10 Odessa San Angelo 10 35 Bryan/ College Station 10 Houston 37 Zach Reyes Executive Vice President San Angelo Bradley D. Brown Senior Vice President Beaumont Brent S. Miller Senior Vice President Kingwood 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 Katie Alford President and CEO Abilene Community Foundation David L. Copeland President SIPCO, Inc. and Shelton Family Foundation 30 20 Beaumont Matthew Melbourne Executive Vice President Chief Operations Officer Josh Brown, CPL Senior Vice President Manager, Oil and Gas Justin Bryan Senior Vice President F. Scott Dueser Chairman of the Board, President and CEO First Financial Bankshares, Inc. Jay Lawrence President MAL Enterprises, Inc. Mark K. Rich Director of Investments Kimbell Art Foundation Susie S. Stalcup Partner Elm Creek Ranch CR106, LLC Aubrey Gideon Senior Vice President Thad Jennings Senior Vice President Trent Martin Senior Vice President Edward J. McGowan, Jr. Senior Vice President Belinda Roensch Senior Vice President Jim Weaver Senior Vice President Advisory Director John L. Beckham Attorney, Beckham Rector and Eargle LLP Trust & Asset Management | Annual Report 2023 | 40 Trust & Asset Management | Annual Report 2023 | 41 FIRST FINANCIAL BANKSHARES CORPORATE INFORMATION FIRST FINANCIAL BANKSHARES & FIRST FINANCIAL BANK BOARD OF DIRECTORS Executive Team Directors F. Scott Dueser Chairman of the Board, President and CEO Ronald D. Butler II Executive Vice President Chief Administrative Officer Michelle S. Hickox Executive Vice President Chief Financial Officer David Bailey Executive Vice President Chief Banking Officer Kirk W. Thaxton Chairman, President and CEO First Financial Trust F. Scott Dueser Chairman of the Board, President and CEO, First Financial Bankshares, Inc. Year: 1991 Committee: 1 April Anthony CEO, VitalCaring Group, Managing Partner Anthony Family Investment Partners, LTD. Year: 2015, Committee: 2 Vianei Lopez Braun Chief Development Officer Decker Jones, P.C. Year: 2020 Committee: 3,5 David L. Copeland, CPA President, SIPCO, Inc. and Shelton Family Foundation Year: 1998 Committee: 1,2,4,5 Mike Denny President Batjer and Associates Year: 2019 Committee: 2,6 Stephen Lee South Texas Area Banking Executive Luke Longhofer Executive Vice President Chief Credit Officer Kyle McVey, CPA Executive Vice President Chief Accounting Officer Randy Roewe Executive Vice President Chief Risk Officer John Ruzicka Executive Vice President Chief Information Officer Senior Team Rett Everett Executive Vice President Credit Administration Javier Jurado Executive Vice President Chief Audit Executive Keith Morton Executive Vice President Credit Administration Mike Parker Executive Vice President Chief Compliance Officer Eric Bonnell Senior Vice President Enterprise Risk Management Corporate Information ANNUAL MEETING Tuesday, April 23, 2024 Abilene Convention Center 1100 N. Sixth St. Abilene, TX 79601 10:30 a.m., or via livestream at ffin.com/live-events TRANSFER AGENT Continental Stock Transfer & Trust Company 212.509.4000 www.continentalstock.com FOR FINANCIAL AND INVESTOR INFORMATION: Michelle S. Hickox Executive Vice President Chief Financial Officer 325.627.7361 CORPORATE OFFICE 400 Pine St. | Suite 310 Abilene, TX 79601 325.627.7038 SEND CERTIFICATES FOR TRANSFER AND ADDRESS CHANGES TO: Continental Stock Transfer & Trust Company 1 State Street, 30th floor New York, NY 10004 CORPORATE MAILING ADDRESS P.O. Box 701 Abilene, TX 79604 ADDRESS SHAREHOLDER INQUIRIES TO: Continental Stock Transfer & Trust Company 1 State Street, 30th floor New York, NY 10004 INDEPENDENT PUBLIC AUDITORS Ernst & Young LLP Dallas, TX First Financial Bankshares Corporate Information | Annual Report 2023 | 42 NASDAQ: FFIN www.ffin.com Murray Edwards Principal The Edwards Group Year: 2006 Committee: 1,4,5,6 Dr. Eli Jones Former Dean of Mays Business School, Professor of Marketing, Lowry and Peggy Mays Eminent Scholar Year: 2022 Committee: 3 Kade Matthews Ranching Investments Year: 1998 Committee: 3,5 Robert C. Nickles, Jr. Executive Chairman Alegacy Group, LLC Year: 2019 Committee: 1,4,5 COMMITTEE CHAIRS: 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: Murray Edwards, Chairman 5. Risk Committee: Robert C. Nickles, Jr., Chairman 6. Bank Directors’ Loan Committee: Murray Edwards, Chairman Johnny E. Trotter President and CEO Livestock Investors, Ltd. Year: 2003 Committee: 1,3,4 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, 2023, deposit information compiled by the Federal Deposit Insurance Corporation. First Financial Bankshares & First Financial Bank Board of Directors | Annual Report 2023 | 43 Tim LancasterFormer President and CEO Hendrick Health SystemYear: 2013Committee: 1,2,3,4,6400 Pine St., Abilene, TX 79601 | 325.627.7038 | ffin.com TM. , 

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