First Financial Bankshares Announces Third Quarter Earnings Results

ABILENE, Texas, Oct. 23 /PRNewswire-FirstCall/ -- First Financial Bankshares,
Inc. (Nasdaq: FFIN) today reported earnings for the third quarter of 2008 of
$13.36 million, up 9.1 percent from $12.25 million in the same quarter last
year. Basic earnings per share were $0.64 per share for the third quarter, up
8.5 percent from $0.59 for the same quarter last year.

Net interest income for the third quarter of 2008 increased 13.2 percent to
$31.40 million compared with $27.74 million in the same quarter last year. The
net interest margin, on a taxable equivalent basis, was 4.73 percent for the
third quarter of 2008 compared with 4.45 percent in the same period a year ago
and 4.61 percent for the quarter ended June 30, 2008.

Noninterest income in the third quarter of 2008 was $12.29 million compared
with $11.99 million in the same quarter a year earlier. Trust fees increased
15.90 percent to $2.50 million compared with $2.16 million in the third
quarter last year as trust assets increased to $1.98 billion in market value.
Service charges on deposit accounts decreased slightly to $5.81 million
compared with $6.07 million a year ago. Real estate mortgage fees decreased
36.50 percent to $649,000 from $1.02 million in the same quarter last year.
ATM and debit card fees increased 20.1 percent to $2.33 million from $1.94
million a year ago.

Noninterest expense increased 6.38 percent in the third quarter of 2008 to
$23.38 million from $21.98 million in the same quarter last year, primarily
due to increased salaries, healthcare costs, profit sharing, utility and
ATM/debit card expenses. The Company's efficiency ratio in the third quarter
improved to 51.41 percent compared with 53.53 percent in the same quarter a
year ago.

The provision for loan losses increased to $1.77 million in the third quarter
of 2008, up from $475,000 in the same quarter last year and $1.44 million in
the second quarter of 2008. This increase is reflective of the Company's
growth in loans and concern for a slowing economy. Nonperforming assets as a
percentage of loans and foreclosed assets totaled 69 basis points at September
30, 2008, compared with 71 basis points at June 30, 2008, and 47 basis points
at September 30, 2007.

"We are pleased to report another quarter of earnings growth and improved net
interest margins, especially in light of the slowing economy," said F. Scott
Dueser, President and Chief Executive Officer. "The Texas economy remains
relatively stable compared to the rest of the United States, and our
subsidiary bank presidents continue to do a good job managing their interest
rate margins and banks."

For the first nine months of 2008, net income increased 8.5 percent to $40.13
million from $36.98 million a year ago. Basic earnings per share rose 8.4
percent to $1.93 in the first nine months of 2008 from $1.78 in the same
period last year. Net interest income increased 11.9 percent in the first
nine months to $91.25 million compared with $81.56 million a year ago.
Noninterest income was $38.06 million in the first nine months of 2008, up 6.1
percent from $35.88 million a year ago.

As of September 30, 2008, consolidated assets for the Company totaled $3.15
billion compared with $2.89 billion a year ago. Loans totaled $1.57 billion
at quarter end, compared with loans of $1.46 billion a year ago. Total
deposits were $2.56 billion as of September 30, 2008, compared with $2.38
billion a year earlier. Noninterest-bearing deposits grew $111.25 million
from a year ago. Shareholders' equity increased $28.41 million to $350.42
million as of September 30, 2008. The Company's equity to assets ratio stood
at 11.13 percent at September 30, 2008.

Headquartered in Abilene, Texas, First Financial Bankshares is a financial
holding company that operates ten separately chartered banks with 48 locations
in Texas. The bank subsidiaries are First Financial Bank, N.A., Abilene,
Albany, Clyde and Moran; First Financial Bank, N.A., Eastland, Ranger and
Rising Star; First Financial Bank, N.A., Cleburne, Burleson, Alvarado and
Midlothian; Hereford State Bank, Hereford; First Financial Bank, N.A., Mineral
Wells; San Angelo National Bank, 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 Weatherford National Bank,
Weatherford, Willow Park, Aledo and Brock. The Company also operates First
Financial Trust & Asset Management Company, N.A., with five 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 Web site 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)

September 30,
-----------------
2008 2007
----- -----
ASSETS:
Cash and due from banks $116,989 $107,597
Fed funds sold 55,675 49,955
Investment securities 1,253,945 1,123,225
Loans 1,567,727 1,457,137
Allowance for loan losses (20,048) (16,728)
------- -------
Net loans 1,547,679 1,440,409
Premises and equipment 65,531 61,431
Goodwill 62,113 62,113
Other intangible assets 2,177 3,455
Other assets 44,479 46,306
------ ------
Total assets $3,148,588 $2,894,491
========== ==========

LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $769,115 $657,861
Interest-bearing deposits 1,794,437 1,724,740
--------- ---------
Total deposits 2,563,552 2,382,601
Short-term borrowings 196,839 168,676
Other liabilities 37,780 21,212
Shareholders' equity 350,417 322,002
------- -------
Total liabilities and
shareholders' equity $3,148,588 $2,894,491
========== ==========

Three Months Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
INCOME STATEMENTS 2008 2007 2008 2007
----------------- ----- ----- ----- -----
Interest income $39,218 $42,555 $119,915 $125,887
Interest expense 7,819 14,816 28,666 44,328
----- ------ ------ ------
Net interest
income 31,399 27,739 91,249 81,559
Provision for
loan losses 1,765 475 4,274 955
----- --- ----- ---
Net interest
income after
provision for
loan losses 29,634 27,264 86,975 80,604
Noninterest
income 12,291 11,991 38,058 35,883
Noninterest
expense 23,385 21,982 69,055 64,097
------ ------ ------ ------
Net income
before income
taxes 18,540 17,273 55,978 52,390
Income tax
expense 5,179 5,022 15,853 15,407
----- ----- ------ ------
Net income $13,361 $12,251 $40,125 $36,983
======= ======= ======= =======

PER COMMON SHARE DATA
----------------------
Net income -
basic $0.64 $0.59 $1.93 $1.78
Net income -
diluted 0.64 0.59 1.93 1.77
Cash dividends 0.34 0.32 1.00 0.94
Book value 16.85 15.51
Market value 51.88 40.18
Shares
outstanding -
end of period 20,793,647 20,764,492 20,793,647 20,764,492
Average
outstanding
shares - basic 20,793,197 20,761,799 20,784,711 20,755,331
Average
outstanding
shares -
diluted 20,853,539 20,891,357 20,831,128 20,879,709

PERFORMANCE RATIOS
Return on
average assets 1.74% 1.70% 1.77% 1.73%
Return on
average equity 15.31 15.61 15.42 16.10
Net interest
margin (tax
equivalent) 4.73 4.45 4.64 4.40
Efficiency ratio 51.42 53.53 51.41 52.85

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

Quarter Ended
------------------------------------------------------
2008 2007
-------------------------------- --------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
--------- -------- --------- -------- ---------

ALLOWANCE FOR
LOAN LOSSES
Balance at
beginning of
period $18,677 $18,377 $17,462 $16,728 $16,425
Loans charged off (647) (1,374) (288) (803) (342)
Loan recoveries 253 233 135 160 170
--- --- --- --- ---
Net (charge-offs)
recoveries (394) (1,141) (153) (643) (172)
Provision for
loan losses 1,765 1,441 1,068 1,377 475
----- ----- ----- ----- ---
Balance at end of
period $20,048 $18,677 $18,377 $17,462 $16,728
======= ======= ======= ======= =======

Allowance
for loan
losses /
period-end
loans 1.28% 1.23% 1.20% 1.14% 1.15%
Allowance
for loan
losses /
nonperforming
loans 245.7 208.4 465.0 541.5 395.6
Net
charge-offs
(recoveries) /
average loans
(annualized) 0.10 0.30 0.04 0.17 0.05

NONPERFORMING
ASSETS
Nonaccrual loans $7,947 $8,963 $3,933 $3,189 $4,023
Accruing loans 90
days past due 213 0 19 36 206
--- - -- -- ---
Total
nonperforming
loans 8,160 8,963 3,952 3,225 4,229
Foreclosed assets 2,613 1,792 1,908 1,506 2,594
----- ----- ----- ----- -----
Total
nonperforming
assets $10,773 $10,755 $5,860 $4,731 $6,823
======= ======= ====== ====== ======

As a % of loans
and foreclosed
assets 0.69% 0.71% 0.38% 0.31% 0.47%

CAPITAL RATIOS
Tier 1 Risk-based 15.41% 15.25% 15.08% 14.65% 14.81%
Total Risk-based 16.49 16.27 16.09 15.62 15.76
Tier 1 Leverage 9.63 9.55 9.34 9.23 9.31
Equity to assets 11.13 11.15 11.49 10.93 11.12

Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- -----------------
NONINTEREST
INCOME 2008 2007 2008 2007
---- ---- ---- ----
Gain on sale of
student loans, net $3 $36 $1,717 $1,816
Gain on
securities
transactions, net 146 (5) 705 80
Trust fees 2,501 2,158 7,230 6,530
Service charges
on deposits 5,809 6,074 17,005 16,766
Real estate
mortgage operations 649 1,022 2,018 2,624
Net gain on sale
of foreclosed
assets 27 13 116 48
ATM and credit
card fees 2,327 1,938 6,623 5,516
Other
noninterest
income 829 755 2,644 2,503
--- --- ----- -----
Total
Noninterest
Income $12,291 $11,991 $38,058 $35,883
======= ======= ======= =======

NONINTEREST EXPENSE
Salaries and
employee
benefits $12,452 $11,723 $37,545 $34,610
Net occupancy
expense 1,826 1,504 5,069 4,358
Equipment expense 1,891 1,848 5,603 5,406
Printing,
stationery and
supplies 482 552 1,433 1,544
ATM and credit
card
expenses 1,155 990 3,271 2,881
Audit fees 288 252 884 756
Legal, tax and
professional
fees 734 689 2,209 1,992
Correspondent
bank service
charges 303 269 868 888
Advertising and
public
relations 638 638 1,935 1,801
Amortization of
intangible
assets 302 375 917 1,135
Other
noninterest
expense 3,314 3,142 9,321 8,726
----- ----- ----- -----
Total
Noninterest
Expense $23,385 $21,982 $69,055 $64,097
======= ======= ======= =======

TAX EQUIVALENT
YIELD
ADJUSTMENT $1,786 $1,336 $5,028 $3,847
====== ====== ====== ======

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

Three Months Ended
September 30, 2008
-------------------------------

Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----

Interest earning assets:
Fed funds sold $65,457 $301 1.83%
Interest-bearing deposits
in nonaffiliated banks 4,142 33 3.12%
Taxable securities 862,778 9,622 4.46%
Tax exempt securities 329,840 5,108 6.19%
Loans 1,529,811 25,940 6.75%
--------- ------ ----
Total interest earning
assets 2,792,028 41,004 5.84%
Noninterest earning assets 263,143
-------
Total assets $3,055,171
=========

Interest-bearing liabilities:
Deposits $1,758,371 $7,313 1.65%
Fed funds purchased and
other short term
borrowings 177,278 506 1.14%
------- --- ----
Total interest-bearing
liabilities 1,935,649 7,819 1.61%
----- ----
Noninterest-bearing
liabilities 772,350
Shareholders' equity 347,172
-------
Total liabilities and
shareholders' equity $3,055,171
=========

Net interest income
and margin (tax
equivalent) $33,185 4.73%
======= ====

Nine Months Ended
September 30, 2008
-------------------------------

Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----

Interest earning assets:
Fed funds sold $90,019 $1,621 2.41%
Interest-bearing deposits
in nonaffiliated banks 3,563 89 3.33%
Taxable securities 825,104 28,115 4.54%
Tax exempt securities 324,976 14,880 6.11%
Loans 1,528,338 80,238 7.01%
--------- ------ ----
Total interest earning
assets 2,772,000 124,943 6.02%
Noninterest earning assets 259,668
-------
Total assets $3,031,668
=========

Interest-bearing liabilities:
Deposits $1,770,394 $26,891 2.03%
Fed funds purchased and
other short term
borrowings 166,173 1,775 1.43%
------- ----- ----
Total interest-bearing
liabilities 1,936,567 28,666 1.98%
------ ----
Noninterest-bearing
liabilities 747,620
Shareholders' equity 347,481
-------
Total liabilities and
shareholders' equity $3,031,668
=========

Net interest income and
margin (tax
equivalent) $96,277 4.64%
======= ====

SOURCE First Financial Bankshares, Inc.

J. Bruce Hildebrand, Executive Vice President of First Financial Bankshares,
Inc., +1-325-627-7155