First Financial Bankshares (FFIN) 8-K 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 16, 2015 –First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2015 of $25.31 million, up 19.34 percent when compared with earnings of $21.21 million in the same quarter last year. Basic earnings per share were $0.39 for the second quarter of 2015 compared with $0.33 in the same quarter a year ago.

Net interest income for the second quarter of 2015 increased 8.54 percent to $52.34 million compared with $48.22 million in the same period of 2014. The net interest margin, on a taxable equivalent basis, was 4.07 percent compared to 4.11 percent in the first quarter of 2015 and 4.24 percent in the second quarter of 2014. Included in interest income for the second quarter of 2015 was $461 thousand, or four basis points in net interest margin, related to discount accretion from fair value accounting related to the Orange acquisition.

The provision for loan losses was $1.55 million in the second quarter of 2015 compared with $1.29 million in the first quarter of 2015 and $1.12 million in the second quarter of 2014. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.61 percent at June 30, 2015, compared with 0.69 percent at March 31, 2015, and 0.93 percent at June 30, 2014. Classified loans totaled $95.77 million at June 30, 2015, compared to $77.75 million at March 31, 2015, and $79.93 million at June 30, 2014.

Noninterest income increased 12.20 percent in the second quarter of 2015 to $17.81 million compared with $15.87 million in the same quarter a year ago. Trust fees increased to $4.74 million in the second quarter of 2015 compared with $4.55 million in the same quarter last year, due to continued growth in the fair value of Trust assets managed to $3.97 billion from $3.63 billion a year ago. This growth offset a $264 thousand decline in Trust oil and gas fee income in the second quarter of 2015 compared to the same quarter a year ago. ATM, interchange and credit card fees increased 14.54 percent to $5.45 million compared with $4.75 million in the same quarter last year due to continued growth in net new accounts and debit cards. Real estate mortgage fees increased 45.25 percent in the second quarter of 2015 to $1.94 million compared with $1.34 million in the same quarter a year ago primarily resulting from a stronger mortgage market and the Company’s asset purchase of 4Trust Mortgage, Inc. on May 31, 2015.

Noninterest expense for the second quarter of 2015 totaled $35.20 million compared to $35.00 million in the second quarter of 2014. The Company’s efficiency ratio in the second quarter of 2015 was 46.46 percent compared with 50.84 percent in the same quarter last year. Included in noninterest expense in the second quarter of 2014 was $2.39 million related to a litigation settlement and damages sustained in a hail storm in Abilene. Excluding this amount, noninterest expense for the second quarter of 2015 increased approximately $2.59 million over the same quarter a year ago. The increase in the second quarter of 2015 was primarily a result of an increase in salary and employee benefit costs to $19.17 million compared to $17.27 million in the same period a year ago, primarily driven by the addition of employees to staff new branches and compliance-related areas, the addition of 4Trust Mortgage Inc. employees and annual pay increases.

For the first half of 2015, net income increased 13.23 percent to $49.30 million from $43.54 million a year ago. Basic earnings per share rose to $0.77 in the first half of 2015 from $0.68 in the same period last

year. Net interest income increased 8.43 percent to $103.44 million in the first half of 2015 from $95.39 million in the same period a year ago. The provision for loan losses totaled $2.84 million compared with $2.81 million in the first half of the previous year. Noninterest income was $33.71 million in the first half of 2015 compared with $32.28 million a year ago. Noninterest expense rose to $69.15 million in the first half of 2015 compared with $67.45 million during the same period last year.

As of June 30, 2015, consolidated assets for the Company totaled $6.12 billion compared with $5.45 billion a year ago. Loans grew to $2.97 billion at quarter end compared with loans of $2.79 billion a year ago. Deposits totaled $4.73 billion at June 30, 2015, compared to $4.32 billion a year ago. Shareholders’ equity rose to $701.19 million as of June 30, 2015, compared with $640.04 million in the prior year.

“We are pleased to report another solid quarter for our Company,” said F. Scott Dueser, Chairman, President and CEO. “We continue to see good growth in loans and earnings and continue to find more efficient ways to provide exceptional service to our customers. During the quarter, we completed the asset purchase of 4Trust Mortgage, Inc. and we eagerly anticipate the closing of our acquisition of First Bank, N.A., Conroe, Texas. In light of the current depressed oil and gas prices, we continue to monitor our exposure to the oil and gas industry, which has remained at approximately 3%, consistent with the 2014 year-end balances.”

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 12 banking regions with 62 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Decatur, Eastland, Fort Worth, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Mauriceville, Merkel, Midlothian, Mineral Wells, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Trent, Trophy Club, Vidor, Waxahachie, Weatherford and Willow Park. FFIN recently announced that they have entered into a definitive agreement to acquire FBC Bancshares, Inc. and its wholly-owned subsidiary, First Bank, N.A., Conroe, Texas. Pending final regulatory and shareholder approval, the acquisition is expected to be finalized on July 31, 2015 and would expand First Financial Bankshares’ growing Texas footprint into the cities of Conroe, Magnolia, Montgomery, Cut and Shoot, Willis and The Woodlands, Texas. The Company also operates First Financial Trust & Asset Management Company, N.A., with eight 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 athttp://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)

	As of
	2015						2014
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
ASSETS
Cash and due from banks	$	149,524		$	142,233		$	190,387		$	149,957		$	166,237
Interest-bearing deposits in banks		18,179			18,275			54,324			83,994			68,331
Interest-bearing time deposits in banks		5,456			9,170			17,002			19,234			24,188
Fed funds sold		5,720			5,460			8,760			4,785			3,110
Investment securities		2,729,408			2,689,640			2,416,297			2,254,316			2,174,396
Loans		2,967,768			2,938,707			2,937,991			2,839,696			2,786,644
Allowance for loan losses		(38,999	)		(37,828	)		(36,824	)		(36,388	)		(35,892	)
Net loans		2,928,769			2,900,879			2,901,167			2,803,308			2,750,752
Premises and equipment		104,495			104,358			103,000			101,437			96,619
Goodwill		96,632			94,882			94,882			94,882			94,882
Other intangible assets		2,407			2,310			2,477			2,547			2,547
Other assets		74,646			58,165			59,906			61,351			65,294
Total assets	$	6,115,236		$	6,025,372		$	5,848,202		$	5,575,811		$	5,446,356
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	1,574,745		$	1,600,807		$	1,570,330		$	1,505,847		$	1,445,947
Interest-bearing deposits		3,152,674			3,236,200			3,179,925			2,958,517			2,872,511
Total deposits		4,727,419			4,837,007			4,750,255			4,464,364			4,318,458
Short-term borrowings		621,155			401,898			367,110			341,909			434,583
Other liabilities		65,469			80,219			49,300			110,773			53,279
Shareholders’ equity		701,193			706,248			681,537			658,765			640,036
Total liabilities and shareholders’ equity	$	6,115,236		$	6,025,372		$	5,848,202		$	5,575,811		$	5,446,356
	Quarter Ended
	2015						2014
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
INCOME STATEMENTS
Interest income	$	53,344		$	52,069		$	51,121		$	49,955		$	49,254
Interest expense		1,008			970			1,039			1,069			1,037
Net interest income		52,336			51,099			50,082			48,886			48,217
Provision for loan losses		1,554			1,290			755			896			1,124
Net interest income after provision for loan losses		50,782			49,809			49,327			47,990			47,093
Noninterest income		17,809			15,897			17,023			17,324			15,872
Noninterest expense		35,204			33,943			36,435			34,040			35,002
Net income before income taxes		33,387			31,763			29,915			31,274			27,963
Income tax expense		8,080			7,766			7,328			7,843			6,758
Net income	$	25,307		$	23,997		$	22,587		$	23,431		$	21,205
PER COMMON SHARE DATA
Net income - basic	$	0.39		$	0.37		$	0.35		$	0.37		$	0.33
Net income - diluted		0.39			0.37			0.35			0.36			0.33
Cash dividends declared		0.16			0.14			0.14			0.14			0.14
Book Value		10.93			11.01			10.63			10.28			9.99
Market Value	$	34.64		$	27.64		$	29.88		$	27.79		$	31.37
Shares outstanding - end of period		64,156,302			64,142,812			64,089,921			64,065,828			64,053,010
Average outstanding shares - basic		64,148,356			64,122,965			64,075,334			64,059,675			64,045,282
Average outstanding shares - diluted		64,354,720			64,298,896			64,316,815			64,304,985			64,301,306
PERFORMANCE RATIOS
Return on average assets		1.67	%		1.64	%		1.57	%		1.71	%		1.59	%
Return on average equity		14.38			14.00			13.34			14.27			13.46
Net interest margin (tax equivalent)		4.07			4.11			4.08			4.18			4.24
Efficiency ratio		46.46			47.01			50.58			47.93			50.84

	Six Months Ended
	June 30,
	2015			2014
INCOME STATEMENTS
Interest income	$	105,413		$	97,463
Interest expense		1,977			2,073
Net interest income		103,436			95,390
Provision for loan losses		2,844			2,814
Net interest income after provision for loan losses		100,592			92,576
Noninterest income		33,707			32,277
Noninterest expense		69,151			67,449
Net income before income taxes		65,148			57,404
Income tax expense		15,845			13,863
Net income	$	49,303		$	43,541
PER COMMON SHARE DATA
Net income - basic	$	0.77		$	0.68
Net income - diluted		0.77			0.68
Cash dividends declared		0.30			0.27
Book Value		10.93			9.99
Market Value	$	34.64		$	31.37
Shares outstanding - end of period		64,156,302			64,053,010
Average outstanding shares - basic		64,135,731			64,027,776
Average outstanding shares - diluted		64,328,672			64,298,525
PERFORMANCE RATIOS
Return on average assets		1.66	%		1.66	%
Return on average equity		14.19			14.22
Net interest margin (tax equivalent)		4.09			4.28
Efficiency ratio		46.73			49.22

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

	Quarter Ended
	2015						2014
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	37,828		$	36,824		$	36,388		$	35,892		$	34,693
Loans charged off		(943	)		(509	)		(670	)		(614	)		(302	)
Loan recoveries		560			223			351			214			377
Net recoveries (charge-offs)		(383	)		(286	)		(319	)		(400	)		75
Provision for loan losses		1,554			1,290			755			896			1,124
Balance at end of period	$	38,999		$	37,828		$	36,824		$	36,388		$	35,892
Allowance for loan losses / period-end loans		1.31	%		1.29	%		1.25	%		1.28	%		1.29	%
Allowance for loan losses / nonperforming loans		228.20			196.04			178.06			162.77			151.52
Net charge-offs / average loans (annualized)		0.05			0.04			0.04			0.06			(0.01	)
SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	47,409		$	30,874		$	19,453		$	23,084		$	20,930
Substandard		48,317			46,775			53,388			58,219			58,864
Doubtful		43			99			141			87			136
Total classified loans	$	95,769		$	77,748		$	72,982		$	81,390		$	79,930
NONPERFORMING ASSETS
Nonaccrual loans	$	16,854		$	18,935		$	20,195		$	22,093		$	23,565
Accruing troubled debt restructured loans		172			177			226			—			—
Accruing loans 90 days past due		64			184			260			263			123
Total nonperforming loans		17,090			19,296			20,681			22,356			23,688
Foreclosed assets		1,045			1,081			1,035			1,273			2,342
Total nonperforming assets	$	18,135		$	20,377		$	21,716		$	23,629		$	26,030
As a % of loans and foreclosed assets		0.61	%		0.69	%		0.74	%		0.83	%		0.93	%
As a % of end of period total assets		0.30			0.34			0.37			0.42			0.48
CAPITAL RATIOS
Tier 1 risk-based		16.25	%		16.23	%		16.05	%		16.07	%		16.15	%
Total risk-based		17.36			17.35			17.16			17.20			17.30
Tier 1 leverage		9.84			9.85			9.89			10.10			9.99
Equity to assets		11.47			11.72			11.65			11.81			11.75
	Quarter Ended
	2015						2014
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
NONINTEREST INCOME
Trust fees	$	4,740		$	4,731		$	4,869		$	4,772		$	4,549
Service charges on deposits		4,021			3,768			4,287			4,402			4,174
ATM, interchange and credit card fees		5,445			4,969			5,137			5,093			4,754
Real estate mortgage fees		1,942			1,427			1,465			1,813			1,337
Net gain (loss) on sale of available-for-sale securities		239			5			—			1			(1	)
Net gain (loss) on sale of foreclosed assets		(49	)		30			100			305			47
Net gain (loss) on sale of assets		(4	)		5			(6	)		(31	)		44
Other noninterest income		1,475			962			1,171			969			968
Total noninterest income	$	17,809		$	15,897		$	17,023		$	17,324		$	15,872
NONINTEREST EXPENSE
Salaries and employee benefits, excluding profit sharing	$	17,865		$	17,023		$	16,302		$	16,354		$	16,279
Profit sharing expense		1,308			1,242			1,516			1,596			995
Loss from partial settlement of pension plan		—			—			2,909			—			—
Net occupancy expense		2,394			2,197			2,296			2,297			2,273
Equipment expense		2,992			2,899			2,695			2,758			2,665
FDIC insurance premiums		749			748			689			693			684
ATM, interchange and credit card expenses		1,609			1,725			1,875			1,819			1,696
Legal, tax and professional fees		1,701			1,697			1,363			1,463			1,208
Audit fees		372			381			279			403			367
Printing, stationery and supplies		471			596			676			632			554
Amortization of intangible assets		72			90			64			62			74
Advertising and public relations		1,484			1,353			1,515			1,591			1,465
Correspondent bank service charges		225			222			222			222			215
Other noninterest expense		3,962			3,770			4,034			4,150			6,527
Total noninterest expense	$	35,204		$	33,943		$	36,435		$	34,040		$	35,002
TAX EQUIVALENT YIELD ADJUSTMENT	$	5,635		$	5,213		$	4,934		$	4,814		$	4,753

	Six Months Ended
	June 30,
	2015			2014
NONINTEREST INCOME
Trust fees	$	9,472		$	9,125
Service charges on deposits		7,789			8,221
ATM, interchange and credit card fees		10,415			9,197
Real estate mortgage fees		3,368			2,361
Net gain (loss) on sale of available-for-sale securities		244			(5	)
Net gain (loss) on sale of foreclosed assets		(19	)		499
Net gain (loss) on sale of assets		1			47
Other noninterest income		2,437			2,832
Total noninterest income	$	33,707		$	32,277
NONINTEREST EXPENSE
Salaries and employee benefits, excluding profit sharing	$	34,889		$	32,476
Profit sharing expense		2,549			2,212
Net occupancy expense		4,590			4,507
Equipment expense		5,891			5,287
FDIC insurance premiums		1,498			1,343
ATM, interchange and credit card expenses		3,335			3,176
Legal, tax and professional fees		3,398			2,481
Audit fees		752			735
Printing, stationery and supplies		1,067			1,329
Amortization of intangible assets		162			148
Advertising and public relations		2,837			2,841
Correspondent bank service charges		447			443
Other noninterest expense		7,736			10,471
Total noninterest expense	$	69,151		$	67,449
TAX EQUIVALENT YIELD ADJUSTMENT	$	10,847		$	9,383

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

	Three Months Ended							Three Months Ended
	June 30, 2015							Mar. 31, 2015
	Average		Tax Equivalent		Yield /			Average		Tax Equivalent		Yield /
	Balance		Interest		Rate			Balance		Interest		Rate
Interest-earning assets:
Fed funds sold	$	10,391	$	10		0.37	%	$	6,767	$	5		0.27	%
Interest-bearing deposits in nonaffiliated banks		34,633		40		0.47			89,798		75		0.34
Taxable securities		1,425,744		7,398		2.08			1,333,073		7,808		2.34
Tax exempt securities		1,294,809		15,108		4.67			1,191,772		13,973		4.69
Loans		2,954,502		36,423		4.94			2,931,805		35,420		4.90
Total interest-earning assets		5,720,079	$	58,979		4.14	%		5,553,215	$	57,281		4.18	%
Noninterest-earning assets		351,223							363,211
Total assets	$	6,071,302						$	5,916,426
Interest-bearing liabilities:
Deposits	$	3,177,999	$	902		0.11	%	$	3,221,552	$	927		0.12	%
Fed funds purchased and other short term borrowings		558,367		106		0.08			388,213		42		0.04
Total interest-bearing liabilities		3,736,366	$	1,008		0.11	%		3,609,765	$	969		0.11	%
Noninterest-bearing liabilities		1,628,847							1,611,430
Shareholders’ equity		706,089							695,231
Total liabilities and shareholders’ equity	$	6,071,302						$	5,916,426
Net interest income and margin (tax equivalent)			$	57,971		4.07	%			$	56,312		4.11	%
	Three Months Ended							Three Months Ended
	Dec. 31, 2014							Sept. 30, 2014
	Average		Tax Equivalent		Yield /			Average		Tax Equivalent		Yield /
	Balance		Interest		Rate			Balance		Interest		Rate
Interest-earning assets:
Fed funds sold	$	5,975	$	4		0.30	%	$	10,619	$	11		0.40	%
Interest-bearing deposits in nonaffiliated banks		118,244		110		0.37			50,213		69		0.55
Taxable securities		1,246,632		7,370		2.36			1,166,248		6,856		2.35
Tax exempt securities		1,091,723		13,078		4.79			1,057,715		12,763		4.83
Loans		2,889,951		35,492		4.87			2,814,083		35,070		4.94
Total interest-earning assets		5,352,525	$	56,054		4.15	%		5,098,878	$	54,769		4.26	%
Noninterest-earning assets		358,395							348,369
Total assets	$	5,710,920						$	5,447,247
Interest-bearing liabilities:
Deposits	$	3,043,612	$	989		0.13	%	$	2,892,065	$	999		0.14	%
Fed funds purchased and other short term borrowings		373,785		49		0.05			384,768		70		0.07
Total interest-bearing liabilities		3,417,397	$	1,038		0.12	%		3,276,833	$	1,069		0.13	%
Noninterest-bearing liabilities		1,621,819							1,518,907
Shareholders’ equity		671,704							651,507
Total liabilities and shareholders’ equity	$	5,710,920						$	5,447,247
Net interest income and margin (tax equivalent)			$	55,016		4.08	%			$	53,700		4.18	%

	Three Months Ended
	June 30, 2014
	Average			Tax Equivalent		Yield /
	Balance			Interest		Rate
Interest-earning assets:
Fed funds sold	$	11,310	��	$	12		0.41	%
Interest-bearing deposits in nonaffiliated banks		48,974			78		0.64
Taxable securities		1,159,430			7,091		2.45
Tax exempt securities		1,037,608			12,599		4.86
Loans		2,748,023			34,227		5.00
Total interest-earning assets		5,005,345		$	54,007		4.33	%
Noninterest-earning assets		335,651
Total assets	$	5,340,996
Interest-bearing liabilities:
Deposits	$	2,867,740		$	955		0.13	%
Fed funds purchased and other short term borrowings		406,913			82		0.08
Total interest-bearing liabilities		3,274,653		$	1,037		0.13	%
Noninterest-bearing liabilities		1,434,674
Shareholders’ equity		631,669
Total liabilities and shareholders’ equity	$	5,340,996
Net interest income and margin (tax equivalent)				$	52,970		4.24	%

	Six Months Ended							Six Months Ended
	June 30, 2015							June 30, 2014
	Average		Tax Equivalent		Yield /			Average		Tax Equivalent		Yield /
	Balance		Interest		Rate			Balance		Interest		Rate
Interest-earning assets:
Fed funds sold	$	8,589	$	14		0.33	%	$	8,530	$	16		0.39	%
Interest-bearing deposits in nonaffiliated banks		62,063		115		0.38			48,842		160		0.66
Taxable securities		1,379,664		15,208		2.20			1,140,469		14,175		2.49
Tax exempt securities		1,243,575		29,081		4.68			1,015,401		24,817		4.89
Loans		2,943,216		71,842		4.92			2,718,910		67,678		5.02
Total interest-earning assets		5,637,107	$	116,260		4.16	%		4,932,152	$	106,846		4.37	%
Noninterest-earning assets		357,185							343,435
Total assets	$	5,994,292						$	5,275,587
Interest-bearing liabilities:
Deposits	$	3,199,655	$	1,829		0.12	%	$	2,842,600	$	1,895		0.13	%
Fed funds purchased and other short term borrowings		473,760		148		0.06			416,505		178		0.09
Total interest-bearing liabilities		3,673,415	$	1,977		0.11	%		3,259,105	$	2,073		0.13	%
Noninterest-bearing liabilities		1,620,187							1,398,961
Shareholders’ equity		700,690							617,521
Total liabilities and shareholders’ equity	$	5,994,292						$	5,275,587
Net interest income and margin (tax equivalent)			$	114,283		4.09	%			$	104,773		4.28	%