First Financial Bankshares to Acquire The First State Bank

ABILENE, Texas, Sept. 9 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) announced today that it has entered into a definitive agreement to acquire Sam Houston Financial Corporation, the parent company of The First State Bank in Huntsville, Texas, for an expected combination cash and stock purchase price of $22.2 million. Pending regulatory approval, the acquisition is expected to be finalized in the fourth quarter of this year.

The acquisition of First State Bank expands First Financial Bankshares' growing Texas footprint into Huntsville, Texas, county seat of Walker County, located about 70 miles north of Houston along Interstate 45.  With a population of 38,000, Huntsville is home to Sam Houston State University, the Texas Department of Criminal Justice and Huntsville State Park.  The acquisition will be the Company's first since it acquired First National Bank of Bridgeport in 2005.  

"We are very impressed with the Huntsville and Walker County area because of the community and the solid economic base," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares.  "The First State Bank in Huntsville has had consistent growth through the years and is rated as one of the high-performing banks in the state.  We welcome the opportunity to bring expanded banking and wealth management services to the market and look forward to welcoming The First State Bank into the financially strong and growing First Financial Bankshares' family of community banks."

"This merger is consistent with our Company's growth strategy of acquiring well-run community banks in Texas, one of the largest and fastest-growing states in the nation," Dueser said.  "When this acquisition is complete, we will operate a total of 11 separately chartered community banks with 52 locations in Texas that span from Hereford in the Panhandle to Huntsville in Southeast Texas."  

As of August 31, 2010, First State Bank had total assets of $164.2 million and total deposits of $147.1 million.

"Joining with First Financial Bankshares will mean new and expanded products and services for our customers and greater opportunity for our employees while allowing us to maintain our focus on serving the local community and making banking decisions on a local basis," said James Baine, CEO of The First State Bank.  "Our bank will continue to have the same friendly people and the same commitment to being involved in the community, but with the added resources of a highly respected, larger banking organization.  We will soon be able to offer an expanded array of depository products, instant issue custom debit cards, a larger lending capacity, mortgage lending and trust services."

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates ten separately chartered banks with 50 locations in Texas.  The Company was named the top-performing bank in the nation for publicly traded banks with assets of at least $3.0 billion in January 2010 by Bank Director magazine.  

First Financial Bankshares' 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 and Midlothian; First Financial Bank, Hereford; 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 six 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.

SOURCE First Financial Bankshares, Inc.