First Financial Bankshares Stock

First Financial Bankshares, Inc., through its subsidiaries, engages in the full-service commercial banking business.

As of December 31, 2023, the company’s wholly-owned subsidiaries, all of which are headquartered in Abilene, Texas, were First Financial Bank, N.A.; First Technology Services, Inc., a wholly-owned subsidiary of First Financial Bank, N.A.; FFB Investment Paris Fund, LLC, a wholly-owned subsidiary of First Financial Bank, N.A.; FFB Portfolio Management, Inc., a wholly-owned subsidiary of First Financial Bank, N.A.; First Financial Trust & Asset Management Company, N.A.; and First Financial Insurance Agency, Inc.

The company’s banking centers are located primarily in Central, North Central, Southeast and West Texas. The company has financial centers across Texas, with ten locations in Abilene, five locations in Bryan/College Station, three locations in Weatherford, two locations in Cleburne, Conroe, San Angelo, Stephenville, and Granbury; and one location each in Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Clyde, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Franklin, Fulshear, Glen Rose, Grapevine, Hereford, Huntsville, Keller, Kingwood, Lumberton, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, Southlake, Spring, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Willis and Willow Park. Additionally, the company operates mortgage loan offices in Austin and Addison, as well as Trust offices in Abilene, Beaumont, Bryan/College Station, Fort Worth, Houston, Odessa, San Angelo, Stephenville and Sweetwater.

The company provides management, technical resources and policy direction to the company’s subsidiaries, which enable them to improve or expand their services while continuing their local activity and identity. Each of the company’s subsidiaries operates under the day-to-day management of its own board of directors and officers.

In particular, the company assists its subsidiaries with, among other things, decisions concerning major capital expenditures, insurance, finance and accounting, strategic planning, employee benefits, including retirement plans and group medical coverage, dividend policies, and appointment of officers and directors, including advisory directors, and their compensation. The company also performs, through corporate staff groups or by outsourcing to third-parties, oversight of the company’s subsidiaries. The company provides advice and specialized services for the bank regions related to lending, investing, purchasing, advertising, public relations, and technology services.

Services Offered by the company’s Subsidiaries

The company’s subsidiary bank, First Financial Bank, N.A., is a separate legal entity that operates under the day-to-day management and oversight of its board of directors and officers. The company’s banking regions, which operate under the company’s subsidiary bank, each have separate regional advisory boards that make recommendations and provide assistance to regional management of the bank regions regarding the operations of their respective region. Each of the company’s bank regions provides general commercial banking services, which include accepting and holding checking, savings and time deposits, making loans, offering automated teller machines (‘ATMs’), drive-in and night deposit services, safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services. In addition, the company provides securities brokerage services through an arrangement with an unrelated third-party in the company’s Abilene and San Angelo regions.

The company also provides full-service trust and wealth management activities through the company’s trust company, First Financial Trust & Asset Management Company, N.A. The company’s trust company has nine locations, which are all located in Texas in Abilene, Beaumont, Bryan/College Station, Fort Worth, Houston, Odessa, San Angelo, Stephenville and Sweetwater. Through the company’s trust company, the company offers personal trust services, which include wealth management, the administration of estates, oil and gas management, testamentary trusts, revocable and irrevocable trusts and agency accounts. The company also administers all types of retirement and employee benefit accounts, which include 401(k) profit sharing plans and IRAs. The company has been providing trust services since 1927.

Investment Portfolio

The company’s investment portfolio consists of obligations of state and political subdivisions, mortgage pass-through securities, corporate bonds and general obligation or revenue based municipal bonds.

Deposits

As of December 31, 2022, the company’s deposits included noninterest-bearing deposits; and interest-bearing deposits, such as interest-bearing checking, savings and money market accounts, time deposits under $250,000, and time deposits of $250,000 or more.

Supervision and Regulation

The company is a financial holding company registered under the Bank Holding Company Act of 1956, as amended, or BHCA. As such, the company is supervised by the Federal Reserve Board, as well as several other bank regulators.

The Change in Bank Control Act of 1978, as amended, or the CIBCA, and the related regulations of the Federal Reserve Board require any person or groups of persons acting in concert (except for companies required to make application under the BHCA), to file a written notice with the Federal Reserve Board before the person or group acquires control of the company.

Banks organized as national banking associations under the National Bank Act are subject to regulation and examination by the Office of the Comptroller of the Currency, or OCC. As a result, the OCC now supervises, regulates and regularly examines the following subsidiaries: First Financial Bank, N.A.; First Financial Trust & Asset Management Company, N.A.; and First Technology Services, Inc. (a wholly-owned subsidiary of First Financial Bank, N.A.) FFB Investment Paris Fund, LLC (a wholly-owned subsidiary of First Financial Bank, N.A.) FFB Portfolio Management, Inc. (a wholly-owned subsidiary of First Financial Bank, N.A.).

The company’s subsidiary bank is a member of the FDIC. The company’s subsidiary bank must pay deposit insurance assessments (or premiums) to the FDIC under a risk-based assessment system for this federal deposit insurance protection.

The Federal Reserve Act, the Federal Deposit Insurance Act (‘FDIA’) and the rules adopted under these statutes restrict the extent to which the company can borrow or otherwise obtain credit from, or engage in certain other transactions with, the company’s subsidiaries. These laws regulate ‘covered transactions’ between insured depository institutions and their subsidiaries, on the one hand, and their non-depository affiliates, on the other hand.

The authority of the company’s subsidiary bank to extend credit to the company’s directors, executive officers and principal shareholders, including their immediate family members, corporations and other entities that they control, is subject to substantial restrictions and requirements under Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder, as well as the Sarbanes-Oxley Act of 2002.

Furthermore, the company’s subsidiary bank must periodically report all loans made to directors and other insiders to the bank regulators, and these loans are closely scrutinized by the regulators for compliance with Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O.

The company’s subsidiary bank received a ‘Satisfactory’ rating in its most recent assessment of its performance under the Community Reinvestment Act of 1977 by the OCC.

Under the Bank Secrecy Act, or BSA, the company is required to monitor and report unusual or suspicious account activity that might signify money laundering, tax evasion or other criminal activities, as well as transactions involving the transfer or withdrawal of amounts in excess of prescribed limits.

Under the regulations of the Office of Foreign Asset Control (OFAC), the company is required to monitor and block transactions with certain ‘specially designated nationals’ who OFAC has determined pose a risk to the U.S. national security.

The company is also subject to certain federal and state consumer laws and regulations that are designed to protect consumers in transactions with banks. These laws and regulations include the Truth in Lending Act, the Truth in Savings Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair and Accurate Credit Transactions Act, the Real Estate Settlement Procedures Act, and the Fair Housing Act, among others.

Given the bank has exceeded $10 billion in assets, the bank is subject to regulation by the Consumer Financial Protection Bureau.

The company continues to review actively the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and assess its probable impact on its business, financial condition, and results of operations.

History

First Financial Bankshares, Inc. was founded in 1890. The company was incorporated in 1956.