Lon Biebighauser
FIRST FINANCIAL BANKSHARESAbout Lon Biebighauser
Lon A. Biebighauser (age 44) is President of First Financial Trust & Asset Management Company (a wholly owned subsidiary of First Financial Bankshares), effective January 1, 2025, after serving as Executive Vice President and Abilene Regional President and previously Abilene Office Manager at the trust company; he holds a BBA in Finance (Magna Cum Laude, Texas A&M, 2003) and the CTFA designation (2007) . In 2024, First Financial Trust delivered strong results: assets under management reached $8.11B book value (+7.5% YoY from $7.55B) and $10.83B market value (+10.7% YoY from $9.78B), establishing a performance baseline for Lon’s remit in 2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| First Financial Trust & Asset Management Company | President (subsidiary of FFIN) | 2025–present | Leads trust/wealth platform following succession from long-tenured CEO |
| First Financial Trust & Asset Management Company | EVP; Abilene Regional President; Abilene Office Manager | 2017–2024 | Ran regional trust operations, client and team leadership before elevation to President |
| First Financial Trust & Asset Management Company | Joined company | 2008–2016 | Progressively senior roles in trust administration/wealth management |
| First National Bank in Graham | Assistant Trust Officer | ~2004–2008 | Trust administration/operations and compliance foundation |
| Birdwell, Quinn & Co., P.C. | Staff Accountant | ~2003–2004 | Tax prep and audit experience |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| United Way of Abilene | Board of Directors; Past Chair | n/d | Community leadership and fundraising oversight |
| The Grace Museum | Board of Directors; Treasurer | n/d | Cultural institution finance oversight |
| Ben Richey Boys Ranch Foundation | Board of Directors | n/d | Youth services support and governance |
| Meals on Wheels Plus; Volunteer Services Council; Historic Paramount Theater; Future Fund | Former board/committee roles | n/d | Civic engagement and philanthropic impact |
Fixed Compensation
Note: Mr. Biebighauser was not a named executive officer (NEO) in the latest proxy, so his base salary and target bonus were not individually disclosed. The company does not use employment agreements for executives; it uses a uniform compensation framework across executives (see Performance Compensation below) .
| Component | 2024 (Trust CEO predecessor) | 2025 update/context | Notes |
|---|---|---|---|
| Base Salary (Trust CEO role) | $475,000 (Kirk W. Thaxton) | Mr. Thaxton stepped down to Vice Chair/Relationship Manager effective 1/1/2025; his base reset to $275,000 in that new reduced role | Provides directional context for the Trust leadership role; Mr. Biebighauser’s base not disclosed . |
| Employment Agreement | Not used | Not used | Company does not utilize employment agreements for executives . |
Performance Compensation
Short-Term Incentive (Annual Cash Bonus) – Framework
- Company-wide: NEO bonus metrics include Earnings Growth, Total Loan Growth, Total Deposit Growth, and Efficiency Ratio (with sliding scale thresholds/targets); actual 2024 payouts ranged from 39.5% to 82.5% of base for NEOs depending on role .
- Trust leadership: In 2024, the Trust CEO’s bonus plan (predecessor to Lon) used trust-specific drivers: Trust Net Income Growth, Trust Revenue Growth, AUM Growth (book), Trust Earnings Growth, and a Trust expense ratio; this aligns incentives to business-unit value creation .
| Metric (Trust CEO Plan – 2024) | Weight | 2024 Actual | Payout (K. Thaxton) |
|---|---|---|---|
| Trust Net Income Growth | 30% | 18.97% | $114,000 |
| Trust Revenue Growth | 30% | 16.85% | $114,000 |
| Assets Managed Growth at Book | 20% | 7.49% | $47,500 |
| Trust Earnings Growth | 10% | 9.48% | $28,500 |
| Trust Noninterest Expense/Gross Income Ratio | 10% | 34.72% | $38,000 |
| Total | 100% | — | $342,000 (72.0% of base) |
Company-wide short-term incentive metrics and payout examples for other NEOs are disclosed in the proxy (payouts tied to earnings growth, balance sheet growth and efficiency), establishing the firm’s pay-for-performance template .
Long-Term Incentives (Equity) – Design
| Award Type | Weight | Metrics/Design | Vesting |
|---|---|---|---|
| Performance Stock Units (PSUs) | 33% | For 2024 grants, 100% based on adjusted Return on Average Assets (ROAA) relative to a peer set of U.S. banks with $10–50B assets; payout 0–200% by percentile (40th=50%, 60th=100%, 80th=200%) . Some awards may use 50% EPS growth and 50% ROAA per plan descriptions . | Cliff at 3 years; 0–200% of target based on performance . |
| Stock Options | 33% | Drives alignment via price appreciation; exercise price = fair market value at grant . | Most recent grants vest 33.3% per year over 3 years; some option schedules show 20% after 1 year then 20% annually or 33.3% annually; 10-year term . |
| RSUs | 33% | Retention/ownership; dividends accrue and pay only on vesting units . | 33.3% per year over 3 years . |
Company-wide share-based activity and overhang/vesting cadence (supply implications):
- Options outstanding 1,592,797 (avg. $33.84), exercisable 999,050 (avg. $31.97) as of 9/30/2025; remaining unrecognized comp cost for unvested awards ~$5.376M over ~1.19 years .
- RSUs outstanding 82,869 as of 9/30/2025 (WAGDFV ~$34.90) .
- PSUs outstanding 116,812 as of 9/30/2025 (WAGDFV ~$33.95), with 0–200% payout range at end of 3-year period; performance peer set measured relative; mix may be 100% ROAA for 2024 grants .
- Combined unrecognized comp cost for unvested RSUs/PSUs/RSAs ~$5.859M to be recognized over ~1.15 years (as of 9/30/2025) .
Equity Ownership & Alignment
| Policy/Status | Details |
|---|---|
| Stock ownership guidelines | CEO: 5x base salary; other executive officers: 3x base salary; five-year compliance window (may convert cash bonuses to equity and/or restrict sales if not compliant) . |
| Hedging/Pledging | Hedging (puts/calls/shorts) prohibited; margin accounts prohibited; pledging may be permitted if not in a margin account . |
| Disclosed pledging | Pledging reported for two executives (not Lon): Butler 154,729 shares; Thaxton 53,097 shares, related to option exercises . |
| Beneficial ownership reporting | Section 16 reports deemed timely for 2024 based on company review . |
| Share base/overhang context | 142,983,467 common shares outstanding as of March 5, 2025 (useful for assessing ownership % if/when Lon’s holdings are disclosed) . |
Note: The proxy discloses detailed beneficial ownership for NEOs; it lists Lon among “other current executive officers” but does not separately quantify his holdings. No pledging by Mr. Biebighauser is disclosed .
Employment Terms
| Topic | Terms/Status |
|---|---|
| Employment agreements | The Company does not utilize employment agreements for executives . |
| Executive Recognition Agreements (ERAs) | Change-in-control protection for NEOs: double trigger (CIC + termination w/o cause or for good reason within 2 years); severance = 200% of base salary (300% for CEO) plus pro-rated target bonus and unused PTO; renewed 7/1/2024 through 6/30/2026 with automatic two-year renewals unless terminated; 280G cutback (no excise tax gross-up) . |
| CIC definition; Cause/Good Reason | Detailed CIC triggers (e.g., >50% voting power change, major transactions, board turnover, asset sales); “Cause” and “Good Reason” defined (material adverse role changes, salary cuts, relocation, etc.) . |
| Equity acceleration on CIC | 2012/2021 plans generally provide full vesting of unvested options upon qualifying CIC; RSU/PSU acceleration values illustrated for NEOs at $36.05 share price on 12/31/2024 . |
| Restrictive covenants | ERAs include confidentiality but do not bind executives to non-compete, non-solicit, or non-disparagement; however, equity grants include non-competition and non-solicitation terms . |
| Clawback | Compensation Recovery Policy (July 2023) for Section 16 officers and key leaders tied to accounting restatements; covers incentive-based comp . |
| Retirement/Deferred Comp | Supplemental Executive Retirement Plan (SERP) for selected key senior executives (includes NEOs), with company contributions (total $391k made in Jan 2025 for 2024 participants), vesting/acceleration on death/disability/CIC; permits elective deferrals of salary, STI and RSU/PSU per 409A; “Make Whole” excess plan frozen since 2018 . |
Note: ERAs are explicitly disclosed for NEOs. The company also files a “Form of Executive Recognition Agreement” as an exhibit, evidencing a standard template; the proxy does not state that Mr. Biebighauser individually has an ERA .
Performance & Track Record (Business Unit)
| Metric | 2023 | 2024 | YoY |
|---|---|---|---|
| First Financial Trust AUM (book value) | $7.55B | $8.11B | +7.5% |
| First Financial Trust AUM (market value) | $9.78B | $10.83B | +10.7% |
- 2024 was the first year Trust AUM exceeded $10B market value, supporting favorable fundamentals for the platform Lon now leads .
Compensation Committee & Governance (Context)
- Compensation Committee members: Ms. Braun, Dr. Jones, Messrs. Lancaster (Chair), Matthews, and Trotter; all independent; met 5x in 2024 (and early 2025) .
- Program design emphasizes pay-for-performance, balanced cash/equity, no hedging, no option repricing, no tax gross-ups, stock ownership requirements, and clawback policy .
Vesting Schedules and Insider Selling Pressure (Supply Overhang)
| Equity Pool (Company-wide) | Outstanding/Status | Vesting/Term | Near-term Expense Tail |
|---|---|---|---|
| Stock Options | 1,592,797 o/s; 999,050 exercisable at 9/30/2025; exercise prices $16.95–$48.91; most recent grants 33.3%/yr or 20%/yr patterns; 10-year term | As noted | Unrecognized comp cost $5.376M over ~1.19 years |
| RSUs | 82,869 o/s at 9/30/2025 (WAGDFV ~$34.90); 3-year 33.3%/yr | Time-based | Included in $5.859M total unrecognized over ~1.15 years |
| PSUs | 116,812 o/s at 9/30/2025 (WAGDFV ~$33.95); 0–200% payout; 3-year cliff | Performance-based | Included in $5.859M total unrecognized over ~1.15 years |
Implication: A steady cadence of vesting (RSUs/options) and potential PSU conversions can create periodic sellable supply; specific grant details for Mr. Biebighauser are not disclosed, but as a senior executive he participates under the 2021 Plan framework .
Equity Ownership & Business Conduct Controls (Risk Indicators)
- Anti-hedging and margin prohibition; pledging permitted only outside margin accounts; pledging by two executives disclosed (not Lon) .
- Clawback policy in place since July 2023 .
- No option repricing; non-compete/non-solicit embedded in equity awards .
About/Background Verification
- Corporate biography confirms tenure since 2008, advancement through regional leadership, and community leadership roles .
- Company leadership changes and Lon’s election to President of First Financial Trust effective 1/1/2025 corroborated in company materials and third-party news .
Investment Implications
- Alignment: Ownership guidelines (3x salary for executive officers), anti-hedging, and PSU metrics tied to relative ROAA support shareholder alignment; equity awards vest over three years and options require price appreciation, reinforcing long-term focus .
- Retention vs. selling pressure: Substantial company-wide unvested equity (options, RSUs, PSUs) with ~1.15–1.19 years of unrecognized expense suggests continued vesting events; while Lon’s specific grants are undisclosed, his role implies participation, meaning periodic supply from executive vesting is a background consideration .
- Change-of-control economics: For NEOs, ERAs provide double-trigger severance at 200% of salary (300% CEO), pro-rated target bonus, and equity acceleration on qualifying CIC; the form agreement exists, but the proxy does not confirm Lon’s inclusion—investors should monitor future filings for any ERA execution specific to him .
- Execution risk and value creation: The trust business delivered double-digit market AUM growth in 2024, a constructive backdrop as Lon assumes leadership; bonus designs for trust leadership focus tightly on net income, revenue, AUM growth, and efficiency, which are the levers to watch for 2025–2026 performance pay outcomes .