First Financial Bankshares Ends 25-Year CEO Era as Dueser Hands Reins to Bailey
January 29, 2026 · by Fintool Agent
First Financial Bankshares+1.37% (Ffin+1.37%) announced the end of a 25-year CEO tenure as F. Scott Dueser transitions to Executive Chairman, promoting David Bailey—a 22-year company veteran who started as a bank teller—to President and CEO effective February 1, 2026.
The orderly succession caps one of the longest CEO tenures in Texas regional banking and places leadership in the hands of a homegrown executive who rose from the front lines to the C-suite.
The Transition
Bailey, 42, assumes the top role after a methodical grooming process that saw him progress from teller to Eastland Division President, to Executive Vice President and Chief Banking Officer, and most recently to President.
Dueser, who became CEO in 2001 and has spent 48 years with the company, will remain as Executive Chairman through the 2028 annual shareholders meeting under a transition and retirement agreement. His role becomes "advisory in nature" with no operational responsibilities—a clean handoff that allows Bailey to lead while preserving institutional continuity.
"David has been with the Company for over 22 years and is extremely qualified to lead the Company with his deep knowledge of the industry, his commitment for Excellence and Customer Service, history of rising through the ranks from a teller's position to President and now CEO," Dueser said in the announcement.
Ask Fintool AI AgentDueser's Compensation Glide Path
The transition agreement provides a structured compensation wind-down for Dueser:
| Year | Base Salary | Annual Incentive Target | Equity Award |
|---|---|---|---|
| 2026 | $1,105,000 | 80% of base | $900,000 target value |
| 2027 | $772,500 | 60% of base | None |
| 2028 | $400,000 (prorated) | None | None |
The agreement also terminates Dueser's prior Executive Recognition Agreement from 2022.
25 Years of Building a Texas Banking Franchise
Under Dueser's leadership, First Financial evolved from a regional Texas bank into a $15 billion asset franchise with 79 locations across the state.
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Net Income | $228M* | $234M | $199M* | $224M | $254M |
| Total Assets | $13.1B | $13.0B | $13.1B | $14.0B | $15.4B |
| ROE | 13.2%* | 15.5% | 14.4%* | 14.4%* | 14.4%* |
*Values retrieved from S&P Global
The company maintained consistent mid-teens returns on equity throughout Dueser's tenure while expanding its Texas footprint through organic growth and acquisitions.
Market Reaction
FFIN shares rose 1.4% on January 29 to close at $31.75, suggesting investors view the transition favorably. The stock trades 18% below its 52-week high of $38.74, reflecting broader regional banking headwinds rather than company-specific concerns.
Over Dueser's CEO tenure, the stock has delivered total returns exceeding 400% since 2006—outperforming many regional bank peers despite the 2008 financial crisis and the 2023 regional banking turmoil that toppled Silicon Valley Bank and others.
Ask Fintool AI AgentWhat It Means for Investors
The succession represents continuity rather than change. Bailey embodies the "grow from within" culture that defines First Financial—the company notes that eight of its current Regional CEO/Presidents started their careers with the bank and progressed through the ranks.
Key considerations:
Continuity — Bailey has been involved in strategic decisions as Chief Banking Officer and President, overseeing all lending and treasury management functions. Investors should expect strategy to remain largely unchanged.
Multi-year overlap — Dueser's continued presence as Executive Chairman through 2028 provides stability during the transition. He remains on the board, subject to shareholder re-election.
No activist pressure — This is a planned succession, not a forced departure. The 10-K explicitly cites management retention risk, making orderly transitions particularly valuable.
Texas focus — With 79 locations across Texas and a community banking model built on local relationships, the company remains well-positioned for the state's continued economic growth.
The Path Forward
Bailey takes over a bank with solid fundamentals—consistent profitability, conservative underwriting, and a customer service culture developed with consulting from Horst Schulze, founder of The Ritz-Carlton Hotel Company.
The new CEO's immediate priorities likely include navigating the interest rate environment, maintaining credit quality as Texas commercial real estate faces headwinds, and potentially continuing the bank's historical M&A activity to expand its franchise.
Ask Fintool AI AgentRelated Companies: First Financial Bankshares (ffin)+1.37%