8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): April 22, 2010

FIRST FINANCIAL BANKSHARES, INC.

(Exact Name of Registrant as Specified in its Charter)

Texas
(State or other Jurisdiction
of Incorporation) 0-7674
(Commission File No.) 75-0944023
(IRS Employer
Identification No.)

400 Pine Street, Abilene, Texas 79601
(Address of Principal Executive Offices and Zip Code)

Registrant’s Telephone Number (325) 627-7155

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 203.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))

o   Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13 e-4 (c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     Attached as an exhibit to this Form 8-K is the earnings release for the quarter ended March 31, 2010 of First Financial Bankshares, Inc.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

99.1 Press Release dated April 22, 2010

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST FINANCIAL BANKSHARES, INC. (Registrant)
DATE: April 22, 2010	By:	/S/ F. Scott Dueser
		F. SCOTT DUESER
		President and Chief Executive Officer

EX-99.1

EXHIBIT 99.1

For immediate release	For More Information:
	J. Bruce Hildebrand, Executive Vice President
	325.627.7155

FIRST FINANCIAL BANKSHARES ANNOUNCES
FIRST QUARTER EARNINGS RESULTS

ABILENE, Texas, April 22, 2010 — First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the first quarter of 2010 of $13.72 million compared with earnings of $13.70 million in the same quarter last year. Basic earnings per share were unchanged from the same quarter a year ago at $0.66.

Results for the first quarter of 2009 included a pre-tax gain of $616,000 on the sale of $73.7 million in student loans to the Department of Education and a $249,000 net gain on securities transactions, both of which were not in the first quarter of 2010.

Net interest income for the first quarter of 2010 increased 2.26 percent to $32.65 million compared with $31.92 million in the same quarter last year. The net interest margin, on a taxable equivalent basis, was 4.69 percent for the first quarter of 2010 compared with 4.76 percent in the same period a year ago and 4.74 percent for the quarter ended December 31, 2009. The provision for loan losses was $2.01 million in the first quarter of 2010, up from $1.76 million in the same quarter last year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.50 percent at March 31, 2010, compared with 1.46 percent at December 31, 2009, and 95 basis points at March 31, 2009.

Noninterest income in the first quarter of 2010 was $11.11 million compared with $11.54 million in the same quarter a year earlier. Trust fees increased to $2.53 million in the first quarter of 2010 compared with $2.11 million in the same quarter last year. Service charges on deposit accounts decreased to $4.86 million during the first quarter compared with $5.14 million a year ago.

Noninterest expense rose 1.70 percent in the first quarter of 2010 to $23.34 million from $22.95 million in the same quarter last year; the largest increases were from profit sharing expense of $245,000 and healthcare expense of $275,000. The Company’s efficiency ratio in the first quarter of 2010 was 50.36 percent compared with 50.22 percent in the same quarter a year ago.

As of March 31, 2010, consolidated assets for the Company increased 7.42 percent to$3.35 billion compared with $3.12 billion a year ago. Loans totaled $1.50 billion at quarter end, compared with loans of $1.48 billion a year ago. Total deposits were $2.69 billion as of March 31, 2010, compared with $2.52 billion a year earlier. Shareholders’ equity rose to $423.82 million as of March 31, 2010, compared with $381.54 million the prior year.

“We are pleased to start our new fiscal year with a solid performance in the first quarter, especially in light of the national economic recession and low interest rates and when compared to our 2009 first quarter which included student loan and security gains,” said F. Scott Dueser, Chairman, President and CEO. “We continue to aggressively address our nonperforming assets and manage our expenses while being committed to the highest service levels for our customers and shareholders.”

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates ten separately chartered banks with 50 locations in Texas. The 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 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)

	March 31,
	2010			2009
ASSETS:
Cash and due from banks	$	95,234		$	112,207
Interest-bearing deposits in banks		192,848			2,636
Fed funds sold		—			46,575
Investment securities		1,407,708			1,330,466
Loans		1,499,001			1,479,552
Allowance for loan losses		(28,750	)		(22,652	)
Net loans		1,470,251			1,456,900
Premises and equipment		65,652			64,888
Goodwill		62,113			62,113
Other intangible assets		880			1,668
Other assets		58,269			43,909
Total assets	$	3,352,955		$	3,121,362
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Noninterest-bearing deposits	$	804,556		$	769,393
Interest-bearing deposits		1,885,558			1,752,322
Total deposits		2,690,114			2,521,715
Short-term borrowings		189,095			166,347
Other liabilities		49,925			51,761
Shareholders’ equity		423,821			381,539
Total liabilities and shareholders’ equity	$	3,352,955		$	3,121,362

	Three Months Ended
	March 31,
	2010			2009
INCOME STATEMENTS
Interest income	$	36,345		$	36,962
Interest expense		3,699			5,038
Net interest income		32,646			31,924
Provision for loan losses		2,010			1,761
Net interest income after provision for loan losses		30,636			30,163
Noninterest income		11,110			11,536
Noninterest expense		23,338			22,947
Net income before income taxes		18,408			18,752
Income tax expense		4,691			5,048
Net income	$	13,717		$	13,704
PER COMMON SHARE DATA
Net income — basic	$	0.66		$	0.66
Net income — diluted		0.66			0.66
Cash dividends		0.34			0.34
Book value		20.33			18.34
Market value		51.56			48.17
Shares outstanding — end of period		20,845,424			20,804,668
Average outstanding shares — basic		20,834,972			20,801,681
Average outstanding shares — diluted		20,867,778			20,847,967
PERFORMANCE RATIOS
Return on average assets		1.68	%		1.76	%
Return on average equity		13.30			14.59
Net interest margin (tax equivalent)		4.69			4.76
Efficiency ratio		50.36			50.22

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

	Quarter Ended
	2010			2009
	March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	27,612		$	25,532		$	23,247		$	22,652		$	21,529
Loans charged off		(1,059	)		(2,430	)		(1,662	)		(1,225	)		(893	)
Loan recoveries		187			145			241			232			255
Net charge-offs		(872	)		(2,285	)		(1,421	)		(993	)		(638	)
Provision for loan losses		2,010			4,365			3,706			1,588			1,761
Balance at end of period	$	28,750		$	27,612		$	25,532		$	23,247		$	22,652
Allowance for loan losses / period-end loans		1.92	%		1.82	%		1.76	%		1.57	%		1.53	%
Allowance for loan losses / nonperforming loans		159.1			148.8			174.4			225.4			233.5
Net charge-offs / average loans (annualized)		0.24			0.62			0.38			0.27			0.17
NONPERFORMING ASSETS
Nonaccrual loans	$	17,775		$	18,540		$	14,585		$	10,242		$	9,606
Accruing loans 90 days past due		290			15			56			72			94
Total nonperforming loans		18,065			18,555			14,641			10,314			9,700
Foreclosed assets		4,444			3,533			4,367			3,755			4,415
Total nonperforming assets	$	22,509		$	22,088		$	19,008		$	14,069		$	14,115
As a % of loans and foreclosed assets		1.50	%		1.46	%		1.30	%		0.95	%		0.95	%
As a % of end of period total assets		0.67			0.67			0.62			0.46			0.45
CAPITAL RATIOS
Tier 1 Risk-based		18.02	%		17.73	%		18.12	%		17.36	%		16.80	%
Total Risk-based		19.28			18.99			19.37			18.61			18.05
Tier 1 Leverage		10.50			10.69			10.83			10.53			10.01
Equity to assets		12.64			12.68			13.51			12.64			12.22

	Three Months Ended
	March 31,
	2010		2009
NONINTEREST INCOME
Gain (loss) on sale of student loans, net	$	—	$	616
Gain on securities transactions, net		1		249
Trust fees		2,526		2,116
Service charges on deposits		4,858		5,141
Real estate mortgage fees		560		588
Net gain (loss) on sale of foreclosed assets		11		(159	)
ATM and credit card fees		2,511		2,209
Other noninterest income		643		776
Total Noninterest Income	$	11,110	$	11,536
NONINTEREST EXPENSE
Salaries and employee benefits, excluding profit sharing	$	11,917	$	11,497
Profit sharing expense		740		495
Net occupancy expense		1,578		1,620
Equipment expense		1,838		1,940
Printing, stationery and supplies		429		433
ATM and credit card expenses		884		921
Audit fees		276		286
Legal, tax and professional fees		881		927
FDIC insurance premiums		988		951
Correspondent bank service charges		191		312
Advertising and public relations		700		532
Amortization of intangible assets		159		222
Other noninterest expense		2,757		2,811
Total Noninterest Expense	$	23,338	$	22,947
TAX EQUIVALENT YIELD ADJUSTMENT	$	2,590	$	2,234

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

	Three Months Ended
	March 31, 2010
	Average		Tax Equivalent		Yield /
	Balance		Interest		Rate
Interest-earning assets:
Fed funds sold	$	2,639	$	1		0.16	%
Interest-bearing deposits in banks		221,702		371		0.68	%
Taxable securities		876,515		8,966		4.09	%
Tax exempt securities		453,855		6,978		6.15	%
Loans		1,493,321		22,619		6.14	%
Total interest-earning assets		3,048,032		38,935		5.18	%
Noninterest-earning assets		258,998
Total assets	$	3,307,030
Interest-bearing liabilities:
Deposits	$	1,894,085	$	3,535		0.76	%
Fed funds purchased and other short term borrowings		173,763		163		0.38	%
Total interest-bearing liabilities		2,067,848		3,698		0.73	%
Noninterest-bearing liabilities		820,932
Shareholders’ equity		418,250
Total liabilities and shareholders’ equity	$	3,307,030
Net interest income and margin (tax equivalent)			$	35,237		4.69	%