• Deposit Accounts: Offers various checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Lending Services: Provides a comprehensive suite of loans including commercial, real estate (residential and commercial mortgages), and consumer loans.
• Wealth Management & Trust Services: Delivers financial planning, investment management, and trust and estate administration to individuals and businesses.
• Treasury Management: Offers business services like remote deposit capture, ACH transactions, and wire transfers to optimize cash flow and financial operations.

First Financial Bankshares (FFIN) is a financial holding company that operates a full-service commercial bank. As such, it primarily serves a diverse base of customers rather than a few specific "major companies" in the traditional B2B sense. Its customers are individuals, families, and various types of businesses within its operating regions.

The company primarily sells its services to the following categories of customers:

• Individual Consumers and Households: This category includes individuals and families who utilize the bank's services for personal banking needs such as checking and savings accounts, mortgages, home equity loans, auto loans, personal loans, credit cards, and wealth management services.
• Small to Medium-sized Businesses (SMBs): FFIN provides a wide range of financial products and services to local and regional businesses. This includes commercial loans, lines of credit, business checking and savings accounts, treasury management services, merchant services, and other cash management solutions to support their operations and growth.
• Commercial Clients and Real Estate Developers: This category encompasses larger businesses and commercial real estate investors and developers who require financing for commercial properties, construction loans, equipment financing, and more complex commercial lending and treasury management solutions.

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F. Scott Dueser, Chairman and Chief Executive Officer

Mr. Dueser has over four decades of experience in the banking sector. He began his career with First National Bank of Abilene (now First Financial Bank) in 1976 as a management trainee. He served as President and CEO of First Financial Bank Abilene from 1991 to 2001 and was named President and CEO of First Financial Bankshares in 2001. Mr. Dueser became Chairman of the Board effective January 1, 2008. He holds degrees in Accounting and Finance from Texas Tech University.

Michelle S. Hickox, Executive Vice President and Chief Financial Officer

Ms. Hickox was appointed EVP/Chief Financial Officer at First Financial Bankshares in January 2023. Before joining FFIN, she served as Chief Financial Officer of Independent Financial Group Inc. and its subsidiary, Independent Bank, an $18 billion publicly-traded bank holding company, where she led the company through its initial public offering in 2013 and was instrumental in more than 10 acquisitions during her tenure. She was previously an audit partner with RSM US LLP, specializing in financial institutions. Ms. Hickox is a Certified Public Accountant and a graduate of Texas A&M University.

David Bailey, President

Mr. Bailey was promoted to President of First Financial Bankshares, Inc. and First Financial Bank in December 2024. He has been with First Financial for 21 years, progressing from a teller to President and CEO of the Eastland Division, and later Executive Vice President of Commercial Banking and Chief Banking Officer for the Company. He oversees all lending and treasury management functions. Mr. Bailey is a graduate of McMurry University, FFIN University, and the Southwestern Graduate School of Banking at Southern Methodist University.

Ronald D. Butler II, Vice Chairman of the Executive Management Committee and Chief Administrative Officer

Mr. Butler was promoted to Vice Chairman of the Executive Management Committee of First Financial Bankshares, Inc. in December 2024 and continues to serve as Chief Administrative Officer. With over four decades in community banking and 32 years at First Financial, he has held significant leadership roles including Senior Vice President of Commercial Lending, President and CEO of the Eastland Division, President and CEO of the Stephenville Region, and CEO of the Abilene Region. He was inducted into the Texas Bankers Hall of Fame in 2023. Mr. Butler holds a Bachelor of Business Administration in Finance from Texas Tech University and a Master of Business Administration from Tarleton State University.

John James Ruzicka, Executive Vice President and Chief Information Officer; Chairman of the Board, President and Chief Executive Officer of First Financial Technology Services, Inc.

Mr. Ruzicka serves as Executive Vice President and Chief Information Officer of First Financial Bankshares. He is also the Chairman of the Board, President, and Chief Executive Officer of First Financial Technology Services, Inc.

1. Credit Loss Due to Fraudulent Activity

   First Financial Bankshares recently reported a significant $21.55 million credit loss in the third quarter of 2025, attributed to suspected fraudulent activities related to a commercial borrower. This incident highlights a vulnerability in the bank's loan portfolio and exposes operational risks. While management described it as an "isolated case," the magnitude of the loss raises concerns about the reliability of earnings guidance and the fragility of its loan portfolio.

2. General Credit Risks and Loan Portfolio Fragility

   Beyond the specific fraud incident, the company faces inherent credit risks and the potential for fragility within its broader loan portfolio. This includes the risk of increased substandard loans and the need to balance higher interest margins with mitigating these credit risks. The provision for credit losses surged in Q3 2025, underscoring this ongoing concern.

3. Interest Rate Fluctuations, Regulatory Changes, and Competition

   As a regional bank, FFIN is susceptible to risks associated with fluctuations in interest rates and changes in regulatory policies and laws. Additionally, the banking sector is experiencing intense competition from fintech companies and faces challenges such as deposit outflows to high-yield alternatives, which can impact profitability and growth.

There are two clear emerging threats for First Financial Bankshares (FFIN):

1. Digital-First Challenger Banks (Neobanks): These online-only financial institutions (e.g., Chime, Varo, Ally Bank) leverage lower operating costs and advanced technology to offer superior digital experiences, often with competitive rates and lower fees. They directly threaten FFIN's traditional deposit base and its ability to attract and retain younger, digitally-native customers. This represents a fundamental shift in how banking services are consumed, similar to how Netflix disrupted Blockbuster's physical distribution model.
2. Big Tech and Fintech Embedded Finance: Technology giants (e.g., Apple, Google, Amazon) and specialized fintech companies (e.g., PayPal, Square/Block, Shopify Capital) are increasingly embedding financial services (payments, credit, lending) directly into their non-banking platforms and ecosystems. By offering these services at the point of need, they disintermediate traditional banks like FFIN, capturing transactions, customer data, and relationships that would otherwise flow through conventional banking channels. This mirrors how Uber circumvented traditional taxi infrastructure by integrating ride services directly into a mobile application.

First Financial Bankshares (FFIN) primarily operates in Texas.

The main products and services offered by First Financial Bankshares include:

• Commercial Banking Services: This encompasses accepting deposits and providing various types of loans, including commercial, industrial, real estate, construction, working capital, and consumer loans. The addressable market size for the Commercial Banking industry in Texas is estimated to be $108.7 billion in 2025.
• Wealth Management & Trust Services: These services include trust and asset management, investment advisory, pension plans, profit-sharing plans, and securities brokerage services. While the Dallas/Fort Worth area is noted as a significant wealth hub with a large number of ultra-high net worth households, a specific total addressable market size in U.S. dollars for wealth management and trust services in Texas is not explicitly available in the provided information. Therefore, the addressable market size for wealth management and trust services in Texas is null.

Expected Drivers of Future Revenue Growth for First Financial Bankshares (FFIN)

Over the next 2-3 years, First Financial Bankshares (FFIN) is expected to drive revenue growth through several key initiatives and market dynamics:

1. Continued Loan Growth: First Financial Bankshares has consistently demonstrated robust loan growth, which has been a primary contributor to its net interest income. For example, loans grew by 10.76% annualized in Q3 2024, reaching $7.72 billion, up from $6.99 billion in Q3 2023. This trend of expanding its loan portfolio is anticipated to continue fueling revenue.
2. Strategic Deposit Growth in Core Markets: Management has emphasized strategies to grow deposits in its markets. Strong deposit growth provides a stable funding base for loan expansion. In Q3 2024, deposits and repurchase agreements increased by an annualized 9.14% to $11.81 billion. This focus on deposit acquisition in its Texas-based community banking regions is crucial for future lending capacity and overall revenue.
3. Net Interest Margin (NIM) Optimization: The company has experienced an expanding net interest margin, primarily due to an asset shift mix where cash flows from maturing securities are reinvested into the loan portfolio. This strategy of remixing assets to higher-yielding loans is expected to continue enhancing net interest income and overall profitability. The net interest margin improved to 3.50% in Q3 2024 from 3.29% in Q2 2023.
4. Growth in Non-Interest Income, particularly Trust Fee Income: Non-interest income has shown an upward trend, with trust fee income specifically highlighted due to growth in assets under management and increases in oil and gas related fees. The company's diverse loan portfolio segments also contribute to its revenue diversification. Continued expansion of these fee-based services will contribute to overall revenue growth.
5. Expansion and Investment in Digital Banking and Technology: First Financial Bankshares has an opportunity to invest further in digital banking and technology to enhance its online and mobile platforms. This strategic focus can attract a younger demographic, improve customer experience, and increase operational efficiency, ultimately driving revenue and market share gains. The company's strategic positioning within Texas, operating with a "One Bank, Eight Regions Concept," also supports leveraging its regional presence for growth.

Share Repurchases

• First Financial Bankshares renewed its stock repurchase plan in July 2025, authorizing the repurchase of up to 5,000,000 shares of common stock, representing approximately 3.5% of its outstanding shares, through July 31, 2026.
• Under a prior authorization, the company repurchased and retired 101,337 shares in September 2023 at an average price of $26.99 per share.
• No share repurchases were made during 2024 or 2025 (as of the Q3 2025 filing).

Outbound Investments

• The company completed the acquisition of SimplyBank in July 2024, strategically expanding its presence into East Tennessee and Northwest Georgia.
• First Financial Bankshares acquired TB&T Bancshares, Inc. in 2020, which positively impacted earnings for that year.
• Growth in 2022 was entirely organic, with no acquisitions made during that year.

Capital Expenditures

• Increased noninterest expenses in 2024 included higher software amortization and expense, and occupancy expense, indicating investments in operational infrastructure and technology.
• In 2023, the company strategically sold $411.1 million in lower-yielding securities to reallocate capital into higher-yielding loan portfolios and achieved $706.9 million in organic loan growth.
• First Financial Bankshares maintains a commitment to growth through the establishment of new branches and the expansion of its service offerings.