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First Financial Bankshares Announces Acquisition of Granbury Bank

Company Release - 03/04/2004

ABILENE, Texas, March 4 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) and Liberty National Bank, Granbury, Texas, have entered into a definitive agreement for First Financial Bankshares to acquire Liberty National Bank for a contemplated cash purchase price of approximately $12.8 million. The agreement was jointly announced today by F. Scott Dueser, President and CEO of First Financial Bankshares, and Garry Z. Luker, Chairman of Liberty National Bank. Following regulatory approval, the transaction is expected to be finalized in mid 2004.

Liberty National Bank was chartered in 1997 and has, as of December 31, 2003, $60 million in total assets and approximately $5.9 million in shareholders' equity. Granbury, a growing and vibrant community located on Lake Granbury, is 40 miles west of Fort Worth in Hood County.

"The acquisition of Liberty National Bank fits well into our long-term strategy of strengthening our presence in growing communities within a 50-mile radius of the Dallas/Fort Worth metroplex," Dueser said. "We have wanted to be in the Granbury market for a number of years and are pleased to have the opportunity to be associated with Liberty National Bank. They are a first- class organization, and we look forward to working with their board, staff and customers."

Luker will continue to be the Chairman of the Board, and all other officers and employees will remain in their present positions.

"We have had a longtime relationship with First Financial Bankshares and have the highest respect for them due to their commitment to community banking and quality customer service," Luker said. "We believe this association is good for the citizens of Granbury and Hood County due to the financial strength that First Financial brings to our community. We look forward to being associated with them and being able to provide expanded products and services to our customers."

Liberty National Bank will become the 11th community bank of First Financial Bankshares. Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company with consolidated assets totaling $2.1 billion, operating separately chartered banks with 28 locations in Texas and a trust company. These subsidiaries are First National Bank of Abilene, Abilene; Eastland National Bank, Eastland; First Financial Bank, National Association, Cleburne; Hereford State Bank, Hereford; City National Bank, Mineral Wells; San Angelo National Bank, San Angelo; First Financial Bank, National Association, Southlake; Stephenville Bank & Trust Co., Stephenville; First National Bank, Sweetwater; Weatherford National Bank, Weatherford and First Financial Trust & Asset Management Company, National Association.

The Company is listed on The Nasdaq Stock 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 polices 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.; Liberty National Bank
    -0-                             03/04/2004
    /CONTACT:  J. Bruce Hildebrand, Executive Vice President of First
Financial Bankshares, Inc., +1-325-627-7167/
    /Web site:  http://www.ffin.com /
    (FFIN)

CO:  First Financial Bankshares, Inc.; Liberty National Bank
ST:  Texas
IN:  FIN
SU:  TNM

JS-AW 
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7057 03/04/200412:08 ESThttp://www.prnewswire.com
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