First Financial Bankshares (FFIN) 8-K/A First Financial Bankshares Announces Second Quarter Earnings Results

Exhibit 99.1

For immediate release For More Information:
J. Bruce Hildebrand, Executive Vice President
325.627.7155

FIRST FINANCIAL BANKSHARES ANNOUNCES
SECOND QUARTER EARNINGS RESULTS

ABILENE, Texas, July 21, 2011 — First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2011 of $16.52 million, up 16.4 percent compared with earnings of $14.20 million in the same quarter last year. Basic earnings per share were $0.53 for the second quarter of 2011 compared with $0.45 in the same quarter a year ago.

Net interest income for the second quarter of 2011 increased 14.1 percent to $38.2 million compared with $33.5 million in 2010, primarily due to a 14.3 percent increase in interest-earning assets of which $292.7 million of the increase was internally generated and $149.1 million resulted from the acquisition in November 2010 of The First State Bank in Huntsville, Texas, which now operates under the First Financial Bank name. The net interest margin, on a taxable equivalent basis, was 4.69 percent, unchanged from the same quarter a year ago and down slightly from 4.72 percent in the first quarter of this year.

The provision for loan losses was $1.92 million in the second quarter of 2011, compared with $2.97 million in the same quarter last year and $2.13 million in the first quarter of this year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.58 percent at June 30, 2011, compared with 1.44 percent at March 31, 2011, and 1.48 percent at June 30, 2010. The larger provision for loan losses in the second quarter of 2010 resulted primarily from a $1.9 million charge-off from one commercial customer, as previously disclosed.

Noninterest income in the second quarter of 2011 was $11.89 million compared with $12.57 million in the same quarter a year earlier. Trust fees increased to $3.21 million in the second quarter of 2011 compared with $2.67 million in the same quarter last year. Service charges on deposit accounts decreased to $4.52 million during the second quarter of 2011 compared with $5.29 million for the same quarter a year ago, due primarily to decreased customer use of overdraft services. ATM and credit card fees increased to $3.42 million from $2.83 million in the second quarter last year. Losses from the sale and write-down of foreclosed assets totaled $1.1 million for the second quarter of 2011, of which $1.0 million relates to the further write-down of foreclosed real estate for the commercial customer that the Company suffered the large charge-off in the second quarter of 2010.

Noninterest expense increased in the second quarter of 2011 to $25.89 million from $23.95 million in the same quarter last year. The increase of 2011 over 2010 was primarily from additional expenses related to the Huntsville acquisition. The Company’s

efficiency ratio in the second quarter of 2011 was 48.65 percent compared with 49.21 percent in the same quarter last year.

For the first half of 2011, net income increased 17.6 percent to $32.82 million from $27.92 million a year ago. Basic earnings per share rose to $1.04 in the first half of 2011 from $0.89 in the same period last year. Net interest income increased 14.2 percent to $75.50 million in the first half of 2011 from $66.10 million a year ago. The provision for loan losses totaled $4.05 million compared with $4.98 million in the first half of the previous year. Noninterest income was $24.74 million in the first half of 2011 compared with $23.68 million a year ago. Noninterest expense rose to $52.05 million in the first half of 2011 compared with $47.29 million last year.

As of June 30, 2011, consolidated assets for the Company totaled $3.84 billion compared with $3.34 billion a year ago. Loans totaled $1.72 billion at quarter end compared with loans of $1.52 billion a year ago. Total deposits were $3.12 billion as of June 30, 2011, compared with $2.71 billion a year earlier. Shareholders’ equity rose to $477.71 million as of June 30, 2011, compared with $431.00 million the prior year.

“We continued to make progress on our financial and strategic goals in the second quarter and to maintain positive momentum despite the continued challenges of a flat national economy and increased federal regulations,” said F. Scott Dueser, Chairman, President and CEO. “In the second half of the year, we will continue to pursue opportunities for acquisitions and for internal growth in loans, trust services, treasury management and other key aspects of our business, while remaining vigilant over expenses and loan quality.”

On April 26, 2011, the Company’s Board of Directors declared a three-for-two stock split in the form of a 50 percent stock dividend which was effective June 1, 2011. All share and per share amounts in this earnings release have been restated to reflect this stock split.

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 separately chartered banks with 52 locations in Texas. The bank subsidiaries are First Financial Bank, N.A., Abilene, Albany, Clyde, Moran and Odessa; First Financial Bank, N.A., Eastland, Ranger and Rising Star; First Financial Bank, N.A., Cleburne, Burleson, Alvarado, Midlothian and Crowley; First Financial Bank, Hereford; First Financial Bank, Huntsville; First Financial Bank, N.A., Mineral Wells; First Financial Bank, N.A., San Angelo; First Financial Bank, N.A., Southlake, Bridgeport, Boyd, Decatur, Keller and Trophy Club; First Financial Bank, N.A., Stephenville, Granbury, Glen Rose and Acton; First Financial Bank, N.A., Sweetwater, Roby, Trent and Merkel; and First Financial Bank, N.A., Weatherford, Willow Park, Aledo, Brock and Fort Worth. The Company also operates First Financial Trust & Asset Management Company, N.A., with seven locations and First Technology Services, Inc., a technology operating company.

The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial Bankshares, please visit our website at http://www.ffin.com.

*****

Certain statements contained herein may be considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company’s management, as well as assumptions made beyond information currently available to the Company’s management, and may be, but not necessarily are, identified by such words as “expect”, “plan”, “anticipate”, “target”, “forecast” and “goal”. Because such “forward-looking statements” are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings 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/Filings” on the Company’s Web site or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.

FIRST FINANCIAL BANKSHARES, INC.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except share and per share data)

	June 30,
	2011			2010
ASSETS:
Cash and due from banks	$	106,500		$	100,460
Interest-bearing deposits in banks		193,088			139,521
Fed funds sold		3,195			225
Investment securities		1,646,655			1,413,555
Loans		1,719,415			1,519,672
Allowance for loan losses		(33,406	)		(28,954	)
Net loans		1,686,009			1,490,718
Premises and equipment		72,550			66,888
Goodwill		71,864			62,112
Other intangible assets		443			728
Other assets		60,711			61,388
Total assets	$	3,841,015		$	3,335,595
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Noninterest-bearing deposits	$	989,271		$	782,166
Interest-bearing deposits		2,130,170			1,924,062
Total deposits		3,119,441			2,706,228
Short-term borrowings		192,364			159,480
Other liabilities		51,505			38,889
Shareholders’ equity		477,705			430,998
Total liabilities and shareholders’ equity	$	3,841,015		$	3,335,595

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
INCOME STATEMENTS
Interest income	$	40,241		$	37,054		$	79,968		$	73,399
Interest expense		2,065			3,596			4,466			7,295
Net interest income		38,176			33,458			75,502			66,104
Provision for loan losses		1,924			2,973			4,051			4,983
Net interest income after provision for loan losses		36,252			30,485			71,451			61,121
Noninterest income		11,894			12,570			24,736			23,680
Noninterest expense		25,888			23,951			52,048			47,289
Net income before income taxes		22,258			19,104			44,139			37,512
Income tax expense		5,738			4,906			11,324			9,597
Net income	$	16,520		$	14,198		$	32,815		$	27,915
PER COMMON SHARE DATA
Net income — basic	$	0.53		$	0.45		$	1.04		$	0.89
Net income — diluted		0.52			0.45			1.04			0.89
Cash dividends		0.24			0.23			0.47			0.45
Book value								15.19			13.78
Market value								34.45			32.06
Shares outstanding — end of period		31,451,300			31,272,632			31,451,300			31,272,632
Average outstanding shares — basic		31,442,978			31,271,603			31,434,328			31,262,084
Average outstanding shares — diluted		31,467,617			31,303,707			31,457,286			31,304,105
PERFORMANCE RATIOS
Return on average assets		1.74	%		1.70	%		1.75	%		1.69	%
Return on average equity		14.29			13.37			14.57			13.33
Net interest margin (tax equivalent)		4.69			4.69			4.71			4.69
Efficiency ratio		48.65			49.21			48.86			49.77

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)

	Quarter Ended
	2011						2010
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	32,501		$	31,106		$	30,013		$	28,954		$	28,750
Loans charged off		(1,396	)		(1,010	)		(1,240	)		(1,178	)		(2,970	)
Loan recoveries		377			278			341			249			201
Net charge-offs		(1,019	)		(732	)		(899	)		(929	)		(2,769	)
Provision for loan losses		1,924			2,127			1,992			1,988			2,973
Balance at end of period	$	33,406		$	32,501		$	31,106		$	30,013		$	28,954
Allowance for loan losses / period-end loans		1.94	%		1.93	%		1.84	%		1.95	%		1.91	%
Allowance for loan losses / nonperforming loans		179.6			210.6			176.3			211.7			203.3
Net charge-offs / average loans (annualized)		0.24			0.18			0.22			0.24			0.73
NONPERFORMING ASSETS
Nonaccrual loans	$	18,599		$	15,411		$	15,445		$	14,110		$	14,240
Accruing loans 90 days past due		6			23			2,196			69			1
Total nonperforming loans		18,605			15,434			17,641			14,179			14,241
Foreclosed assets		8,778			8,872			8,309			8,217			8,306
Total nonperforming assets	$	27,383		$	24,306		$	25,950		$	22,396		$	22,547
As a % of loans and foreclosed assets		1.58	%		1.44	%		1.53	%		1.45	%		1.48	%
As a % of end of period total assets		0.71			0.63			0.69			0.65			0.68
CAPITAL RATIOS
Tier 1 Risk-based		17.97	%		17.60	%		17.01	%		18.19	%		18.22	%
Total Risk-based		19.22			18.86			18.26			19.45			19.48
Tier 1 Leverage		10.22			10.03			10.28			10.89			10.63
Equity to assets		12.44			11.92			11.70			13.08			12.92

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011			2010		2011			2010
NONINTEREST INCOME
Gain on securities transactions, net		42			72		261			72
Trust fees		3,211			2,672		6,254			5,198
Service charges on deposits		4,520			5,293		8,894			10,152
Real estate mortgage fees		941			857		1,874			1,417
Net gain (loss) on sale of foreclosed assets		(1,111	)		59		(1,174	)		70
ATM, interchange and credit card fees		3,415			2,830		6,491			5,341
Other noninterest income		876			787		2,136			1,430
Total Noninterest Income	$	11,894		$	12,570	$	24,736		$	23,680
NONINTEREST EXPENSE
Salaries and employee benefits, excluding profit sharing	$	12,916		$	11,762	$	26,027		$	23,679
Profit sharing expense		1,092			1,079		2,216			1,819
Net occupancy expense		1,685			1,561		3,332			3,139
Equipment expense		1,951			1,853		3,822			3,690
Printing, stationery and supplies		489			428		916			857
ATM and credit card expenses		1,183			866		2,330			1,750
Audit fees		276			220		549			497
Legal, tax and professional fees		1,077			874		2,328			1,755
FDIC Insurance premiums		597			990		1,568			1,978
Correspondent bank service charges		208			181		408			372
Advertising and public relations		870			785		1,678			1,485
Amortization of intangible assets		105			153		216			312
Other noninterest expense		3,439			3,199		6,658			5,956
Total Noninterest Expense	$	25,888		$	23,951	$	52,048		$	47,289
TAX EQUIVALENT YIELD ADJUSTMENT	$	3,145		$	2,642	$	6,294		$	5,233

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)

	Three Months Ended
	June 30, 2011
	Average		Tax Equivalent		Yield /
	Balance		Interest		Rate
Interest-earning assets:
Fed funds sold	$	5,844	$	—		—	%
Interest-bearing deposits in nonaffiliated banks		174,540		318		0.73	%
Taxable securities		1,098,432		9,831		3.58	%
Tax exempt securities		552,635		8,309		6.01	%
Loans		1,699,004		24,928		5.88	%
Total interest-earning assets		3,530,455		43,386		4.93	%
Noninterest-earning assets		269,341
Total assets	$	3,799,796
Interest-bearing liabilities:
Deposits	$	2,150,790	$	2,014		0.38	%
Fed funds purchased and other short term borrowings		192,154		51		0.11	%
Total interest-bearing liabilities		2,342,944		2,065		0.35	%
Noninterest-bearing liabilities		993,189
Shareholders’ equity		463,663
Total liabilities and shareholders’ equity	$	3,799,796
Net interest income and margin (tax equivalent)			$	41,321		4.69	%

	Six Months Ended
	June 30, 2011
	Average		Tax Equivalent		Yield /
	Balance		Interest		Rate
Interest-earning assets:
Fed funds sold	$	5,270	$	1		0.02	%
Interest-bearing deposits in nonaffiliated banks		187,571		684		0.74	%
Taxable securities		1,074,587		19,424		3.62	%
Tax exempt securities		547,815		16,636		6.07	%
Loans		1,688,156		49,517		5.92	%
Total interest-earning assets		3,503,399		86,262		4.97	%
Noninterest-earning assets		273,996
Total assets	$	3,777,395
Interest-bearing liabilities:
Deposits	$	2,159,892	$	4,364		0.41	%
Fed funds purchased and other short term borrowings		191,065		102		0.11	%
Total interest-bearing liabilities		2,350,957		4,466		0.38	%
Noninterest-bearing liabilities		972,199
Shareholders’ equity		454,239
Total liabilities and shareholders’ equity	$	3,777,395
Net interest income and margin (tax equivalent)			$	81,796		4.71	%