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First Financial Bankshares Announces Acquisition of the Peoples State Bank in Clyde, Texas

Company Release - 10/25/2004

ABILENE, Texas, Oct. 25 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) has entered into a definitive agreement to acquire Clyde Financial Corporation, the parent company of The Peoples State Bank in Clyde, Texas, for an expected cash purchase price of $25.4 million. The transaction is expected to be finalized in either late December or early in the first quarter of 2005, subject to regulatory approval.

"We have enjoyed a long-term relationship with The Peoples State Bank and have the greatest respect for Doug Ford and his staff," said F. Scott Dueser, President and Chief Executive Officer of First Financial Bankshares. "We look forward to them becoming part of our family and fully anticipate the management of the bank to continue in their present positions. This is a merger that will provide expanded opportunities for both the customers and employees of The Peoples State Bank. At the same time, it continues First Financial's pattern of steady growth through careful acquisitions of established, well-run community banks in our targeted areas in Texas."

"Our relationship with First Financial spans nearly four decades," said Doug Ford, Chairman and Chief Executive Officer of The Peoples State Bank. "We have great respect for their commitment to locally managed community banking and outstanding customer service. Our bank will continue to have the same friendly people and the same strong commitment to our local communities; however, we will now be able to offer enhanced services, including expanded lending capability, trust services and the latest in technology."

As of June 30, 2004, The Peoples State Bank had total assets of $113.3 million and shareholder's equity of $12.7 million. Clyde is a suburban community in Callahan County, 12 miles east of Abilene. The Peoples State Bank has four offices, one each in Clyde, Ranger, Rising Star and Moran.

The Peoples State Bank is the third announced acquisition for First Financial Bankshares this year. The Company completed the acquisition of Liberty National Bank in Granbury in July 2004 and announced plans to acquire First National Bank, Glen Rose, in September. The Glen Rose acquisition is expected to be finalized during the fourth quarter, pending regulatory approval.

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company with consolidated assets totaling $2.2 billion operating eleven separately chartered banks with 29 locations in Texas, a trust company and a technology operating company. These subsidiaries are First National Bank of Abilene, Abilene; Eastland National Bank, Eastland; First Financial Bank, N.A., Cleburne; Liberty National Bank, Granbury; Hereford State Bank, Hereford; City National Bank, Mineral Wells; San Angelo National Bank, San Angelo; First Financial Bank, N.A., Southlake; Stephenville Bank & Trust Co., Stephenville; First National Bank, Sweetwater; Weatherford National Bank, Weatherford; First Financial Trust & Asset Management Company, N.A.; and First Technology Services, Inc.

The Company is listed on The Nasdaq Stock Market under the trading symbol FFIN. For more information about First Financial Bankshares, access their 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.

SOURCE  First Financial Bankshares, Inc.
    -0-                             10/25/2004
    /CONTACT:  F. Scott Dueser, President and CEO of First Financial
Bankshares, Inc., +1-325-627-7155/
    /Web site:  http://www.ffin.com /
    (FFIN)

CO:  First Financial Bankshares, Inc.; Clyde Financial Corporation; Peoples
     State Bank
ST:  Texas
IN:  FIN
SU:  TNM

AH-AP 
-- DAM045 --
3534 10/25/200415:00 EDThttp://www.prnewswire.com
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