At the same time, due to recent legislative changes and turmoil in the liquidity markets, the Company noted uncertainty in future student loan sales and premiums. The Company was notified by the higher education authority, which has historically purchased its student loans, that effective July 1, 2008, the authority will no longer offer premiums for the student loans or enhanced borrower benefits and that it would suspend acquisitions of student loans should the authority be unable to obtain needed funds.

"We have closely monitored the student loan legislation and liquidity markets for the past eighteen months and now have doubt that we will be able to recognize the sales and premiums we have experienced in the past," said F. Scott Dueser, Chairman, President and CEO. "We will work closely with the students, universities and the authority to minimize the negative impact from this situation, but we realize that this line of business has an uncertain future."

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates ten separately chartered banks with 47 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 and Trent; 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. -- First Financial Bankshares, Inc.