LUTHER KING CAPITAL MANAGEMENT LKCM SMID CAP EQUITY COMPOSITE First Quarter, 2016 Update

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1 LUTHER KING CAPITAL MANAGEMENT LKCM SMID CAP EQUITY COMPOSITE First Quarter, 2016 Update Performance ** 1 st QTR Years Annualized 5 Years Annualized Since Inception Annualized * LKCM SMID Cap Equity Composite (gross) (4.49)% 5.04% 3.98% 8.36% LKCM SMID Cap Equity Composite (net) (4.69)% 4.09% 2.99% 7.32% Russell 2500 Index 0.39% 8.16% 8.58% 7.96% Small to mid-sized companies, as measured by the Russell 2500, eked out a small gain in 1Q16 by advancing 0.4%. While the net return was minimal, the volatility during the quarter was significant. The quarter started off extremely weak, declining 14% by early February before rebounding 17% to end the quarter flattish. At the bottom, the benchmark was in a bear market, down 23% from last summer s peak. The Federal Reserve s stated monetary policy forecast accounted for most of this volatility. After the December Fed Funds rate increase, the expectation was for four additional rate increases in This did not set well with the market and with softer U.S. economic data and continued concerns over slower global growth, the market faltered. The Fed quickly backpedaled and began taking a more dovish view on future rate increases. This allowed the market to snap back from its January sell-off. Growth stocks, the place to be over the past few years, took it hard during the quarter as the Russell 2500 Growth index fell 2.7% compared to the Russell 2500 Value index gain of 3.3%. This was a major reversal of previous leadership and one of the largest quarterly performance spreads between the two subsets of the benchmark. The U.S. economy continues to expand and grow although the growth became even more sluggish during 1Q16. The Index of Leading Indicators remains positive but has decelerated. This puts the Federal Reserve in a tricky position. Their mandate of full employment has been met with the unemployment rate near 5% but inflation is beginning to pick up. Normally they would be increasing the Federal Funds rate to get ahead of higher inflation, but the underlying economy does not appear to be strong enough to support higher rates. The industrial economy, which has been in its own recession (due to weakness in the energy industry and global markets), is improving while the consumer continues to chug along. Stronger employment, higher wages and lower oil prices support the consumers positive sentiment and outlook. We believe this rate increase cycle will be a slow, drawn out process with a peak well below prior cycles. Our positive outlook is not without risks. Current trouble spots are global growth prospects, namely foreign economies, and geopolitical risk arising from tension in the Middle East, which we are watching closely. Oil prices, rebounding from the high $20 s to the high $30 s has temporarily taken some pressure off. Overall, we expect to see limited revenue and profit growth, but continued stock buybacks, dividend increases, and additional merger and acquisition activity. With slower earnings growth and market valuations higher than normal, additional market volatility and lower overall returns would not surprise us. For the benchmark, Utilities was by far the best performing sector during the quarter, followed by the REIT s. As high yield, defensive sectors, both benefited from the market volatility and a reset to lower Fed Funds rate increase expectations. Healthcare, 4Q15 s best performing sector, turned into the worst performer due to weakness in growth stocks given the higher growth nature of this sector. Oil and other commodity prices bottomed about the same time as the market and helped lead the market higher as it rebounded. Despite the bounce, the Energy sector still ended down for the quarter. Value stocks outperformed growth stocks. Larger market cap, profitability, and dividend yield were characteristics of the companies that outperformed. Higher growth expectations and higher beta were characteristics of the companies that underperformed. The LKCM SMID Cap Composite underperformed the benchmark in 1Q16. During the quarter, both our overall stock selection decisions and our sector allocation decisions were a drag to our relative performance. Our performance held up during the major sell off early in the quarter but we did not keep up during the rebound phase in February and March. We were surprised at the strength of the rebound and our more defensive, less cyclical positioning was a drag. The top contributors to our performance were our stock selections in the Healthcare, Energy and Consumer Staples sectors while the biggest detractors were our stock selections in the Financials sector, being underweight the best sector, Utilities, and being overweight the worst performing sector, Healthcare. Our tilt towards growth and its underperformance worked against us during the period. We remain confident our higher quality investment strategy remains prudent during this period of higher market volatility. Our investment strategy is to maximize our internal, research-intensive process and to identify competitively advantaged companies that generate strong financial returns with good reinvestment opportunities and purchase these stocks at attractive prices. We believe this strategy of investing in competitively advantaged companies with viable strategies to increase the value of their businesses will continue to be beneficial for our investors. Our goal is to generate superior returns over time relative to our benchmark by consistently executing our strategy and to minimize the risk (volatility) of the portfolio with a focus on achieving long term capital appreciation. * 4/1/05 3/31/16 ** This presentation is supplemental to the attached full disclosure presentation. Past performance is not indicative of future results.

2 LKCM SMID CAP EQUITY COMPOSITE March 31, 2016 CO-MANAGERS: STEVEN R. PURVIS, CFA J. LUTHER KING, JR., CFA INCEPTION: April 1, 2005 INVESTMENT STRATEGY: CONTACT: Provide superior performance with lower volatility relative to our benchmark with a focus on achieving long term capital appreciation through long-term investment in competitivelyadvantaged small-cap and mid-cap companies. Mark L. Johnson, CFA Luther King Capital Management (817) mjohnson@lkcm.com TEN LARGEST HOLDINGS 3/31/2016 * PORTFOLIO RESULTS PORTFOLIO CHARACTERISTICS SOVRAN SELF STORAGE INC 2.8 % (Benchmark - Russell 2500) HEALTHCARE SERVICES GROUP INC 2.6 % (Since Inception) TAKE TWO INTERACTIVE 2.5 % 1.20% Net ACUITY BRANDS INC 2.4 % ALPHA 0.22% CHARLES RIVER LABS INTL 2.4 % BETA FORTUNE BRANDS 2.4 % R 2 89% POOL CORPORATION 2.4 % FORTINET INC 2.3 % VWR CORP 2.2 % UP CAPTURE 90% 86% BALL CORPORATION 2.2 % 24.2 % DOWN CAPTURE 84% 87% *The largest ten holdings are at 3/31/16 and may not reflect current holdings. RETURN ON SHAREHOLDERS EQUITY 19% LONG TERM DEBT TO TOTAL CAPITAL 30% P/E (Fwd 4 Qtrs) WTD AVG. MARKET CAPITALIZATION TOTAL SMID CAP EQUITY COMPOSITE ASSETS *Turnover rate is based on a representative portfoio for a rolling one year period ending 3/31/16. 23x $4,870 Million $156 Million #HOLDINGS 56 PORTFOLIO TURNOVER* 59% ACTIVE SHARE 94% LESS RISK MORE RISK 13% 12% 11% LKCM SMID CAP EQUITY COMPOSITE MORE RETURN ATTRIBUTION (1Q 2016) Avg. Portfolio Weight Portfolio Contribution Avg. Benchmark Weight Benchmark Contribution TOTAL RETURN 10% 9% 8% 7% 6% 5% 4% LKCM SMID CAP 7.32% TR Net* 17.38% SD Net ** 3% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% TR = Total Return Russell % TR* 18.41% SD** STANDARD DEVIATION SD = Standard Deviation LESS RETURN FINANCIALS 17.1% -2.0% 25.8% 0.0% INFORMATION TECHNOLOGY 18.8% -0.7% 15.1% -0.2% INDUSTRIALS 13.0% 0.1% 14.7% 0.7% CONSUMER DISCRETIONARY 13.6% -0.1% 14.6% 0.5% HEALTH CARE 15.5% -1.8% 11.8% -1.9% MATERIALS 4.2% 0.3% 5.9% 0.4% UTILITIES 0.0% 0.0% 5.4% 0.7% ENERGY 2.4% -0.4% 2.8% -0.1% CONSUMER STAPLES 4.0% 0.3% 3.2% 0.2% TELECOMM SERVICE 0.0% 0.0% 0.7% 0.1% CASH & EQUIVALENTS 9.7% 0.0% 0.0% 0.0% TOTAL PORTFOLIO 100.0% -4.5% 100.0% 0.4% Source: Thomson Reuters (Thomson One Portfolio). *Total Return Since Inception (4/01/05 to 3/31/2016) Annualized **Standard deviation and performance characteristics reporting period (4/01/05 to 3/31/2016) This presentation is supplemental to the attached full disclosure presentation. Past performance is not indicative of future results. Sources: LKCM Smid Cap Equity Composite, Zephyr Associates, Inc., Thomson Reuters (Thomson One Portfolio)

3 LKCM SMID Cap Equity Composite Net Cumulative Returns Since Inception (4/1/05 3/31/16) PERCENT % 117.5% LKCM SMID Cap Equity Composite (net) Russell 2500 Index The performance results should be reviewed along with the attached full disclosure presentation. Past performance is not indicative of future results.

4 LKCM SMID Cap Equity Composite Net Annualized Performance (Periods Ending 3/31/16) 15% 10% 8.16% 8.58% 7.32% 7.96% 5% 4.09% 2.99% 0% 0.39% -5% -4.69% -10% Year to Date 1/1/16-3/31/16 Three Years Five Years Since Inception 4/1/05-3/31/16 LKCM Smid Cap Equity Composite (net) Russell 2500 Index The performance results should be reviewed along with the attached full disclosure presentation. Past performance is not indicative of future results. Time periods over one year are annualized.

5 LUTHER KING CAPITAL MANAGEMENT SMID CAP EQUITY COMPOSITE FULL DISCLOSURE PRESENTATION AS OF MARCH 31, 2016 SMID Cap Eq Comp Total Return Russell Annual 3-Year Annualized Standard Deviation Russell Gross Net 2500 Standard SMID Cap 2500 Number of SM ID Cap Eq Composite Assets Year of Fees of Fees Index Deviation Eq Comp Index Accounts (millions) Total Percentage Firm of Firm Assets Assets (millions) 2016 (1/1-3/31) % % 0.39 % NA % NA % NA % % NA NA NA NA NA NA NA NA NA NA NA NA NA NA Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year and/or the period is a partial year and/or the information was not required. Luther King Capital Management (LKCM) is a registered investment adviser under the Investment Advisers Act of 1940 and is defined as an independent investment management firm. LKCM claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. LKCM has been independently verified for the periods January 1, 1992 through December 31, Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The SMID Cap Equity Composite has been examined for the periods April 1, 2005 to December 31, The verification and performance examination reports are available upon request. Verification does not ensure the accuracy of any specific composite presentation. The firm-wide verification and composite performance examination for the period January 1, 2014 through December 31, 2014 is currently being conducted. The SMID Cap Equity Composite contains all fully discretionary taxable and non-taxable, fee-paying small to mid-cap equity accounts under management, including applicable registered investment companies for which LKCM serves as investment adviser or subadviser. Our small-mid cap strategy seeks to achieve long-term capital appreciation while attempting to manage portfolio risk and volatility. Our small-mid cap strategy seeks to achieve its investment objective through fundamental analysis of individual companies and seeks high quality companies based on various criteria, such as profitability levels, balance sheet quality, competitive advantages, market share positions, ability to generate excess cash flows, meaningful management ownership stakes, reinvestment opportunities, and relative valuation. The strategy typically purchases securities of companies with market capitalizations between $1.25 billion and $10 billion at the initial time of purchase. For comparison purposes, the composite is measured against the Russell 2500 Index, which is a market capitalization weighted index that includes small and medium capitalization securities and is generally representative of the range of market capitalization of securities comprising the composite. April 1, 2005 is the effective creation date of the SMID Cap Equity Composite. During December 2006, the composite name was changed from SMID Composite to SMID Cap Equity Composite to more accurately describe the strategy. Quarterly performance from April 1, 2005 to March 31, 2016 is available upon request. The annual standard deviation presented is an asset-weighted calculation of performance dispersion for accounts in the composite the entire year. The SMID Cap Equity Composite included portfolio(s) that pay a bundled fee, which includes all charges for trading costs, portfolio management, custody, and other administrative fees. The year-end percent of composite assets is as follows: 2008, 7.85%; 2009, 8.20%; 2010, 7.26%; 2011, 5.60%; 2012, 2.39%; 2013, 2.42%; 2014, 2.25%. Gross returns for bundled fee portfolio(s) are presented as supplemental information as they do not reflect the deduction of any trading costs, fees, or expenses. Net returns for bundled fee portfolio(s) reflect the deduction of all charges for trading costs, portfolio management, custody, and other administrative fees. Ten years annualized compound return ending March 31, 2016: SMID Cap Equity Composite 6.65% (gross), 5.60% (net); Russell 2500 Index 6.47%. The current management fee schedule for this composite is as follows: 1% on the first $5,000,000;.75 of 1% on the next $5,000,000;.50 of 1% above $10,000,000; minimum annual fee $30,000. Fees for registered investment companies for which LKCM serves as adviser or subadviser are calculated and paid quarterly in arrears, at annualized rates up to 0.75% of such fund's average daily net assets. In some instances, LKCM voluntarily waives these fees and/or reimburses the applicable fund in order to maintain a designated expense ratio. LKCM may adjust or otherwise negotiate management fees in its discretion and, therefore, clients may have a different fee schedule. For a complete list of our management fees, please see our Form ADV, Part 2A. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Effective January 2010, this composite is to stay over 80% invested in stocks at all times. Effective January 1, 2005, new accounts are added quarterly when the account is at least 75% invested and fully representative of investment style. Prior to January 1, 2005, accounts were added soon after inception on a quarterly basis and/or when considered fully representative of investment style. A complete list and description of the firm's composites is available upon request. Terminated accounts are included through the last full calendar quarter under management. Results are presented before taxes, both gross of management fees (which is net of commissions and other transaction costs) and net of actual management fees, and includes the reinvestment of all income. The U.S. dollar is the currency used to express performance. Past performance is not indicative of future results.

6 LUTHER KING CAPITAL MANAGEMENT SMID CAP EQUITY COMPOSITE PERFORMANCE RESULTS* APRIL1, 2005 MARCH 31, 2016 Total Return Russell Gross Net Cash 2500 of Fees of Fees Equities Equivalents Index Annualized Returns Ending 3/31/16 1 Year (9.34) % (10.06) % (8.57) % 0.01 % (7.31) % 2 Years (3.67) (4.52) (3.04) Years Years Years Years Years Years Years Years Years *The results shown above should be reviewed along with Luther King Capital Management's full disclosure presentation. If you have not received a copy of the full disclosure presentation, please contact Luther King Capital Management for a copy. Segment returns, equities only and cash only, are supplemental information to this composite. Past performance is not indicative of future results.

7 GLOSSARY OF TERMS Alpha represents the excess return of the composite over the expected market return. Beta measures the risk or volatility of the composite relative to the market as a whole. 2 R measures the correlation of composite returns to the benchmark. Up Capture measures the percentage of benchmark performance captured by the composite during up quarters. Down Capture measures the percentage of benchmark performance captured by the composite during down quarters.