William Matthews Penny, 91, of Bay City passed away peacefully on Tuesday, March 9, 2010. He was born November 23, 1918 in Houston, TX the son of the late Molly Belle Matthews Penny & William L. Penny.

Bill moved in 1929 with his mother, after the death of his father, to the ranch property they owned near Van Vleck. He graduated from Bay City High School and attended Schreiner Institute in Kerrville, TX. During World War II Bill was in the 14th Air Force and served under General Claire Chennault, when they were known as the Flying Tigers. He received the Distinguished Flying Cross and 2 Air Medals.

Bill was a member of St. Mark's Episcopal Church, the Sons of the Republic, VFW Post 2438, American Legion, Lions Club, and the Bay City Country Club where in years past he received much pleasure playing golf and fraternizing with friends. He was associated with Bay City Auto & Sales for many years.

Bill is survived by his wife of 61 years Lilabeth Massenburg Penny; Children: Elizabeth Penny Schmid & husband Mickey Schmid, Bill Penny Jr. & wife Lindy King Penny; grandsons: Mick Schmid IV, Will Schmid & wife Ali, Matt Schmid, William Penny III, King Penny, and Lawson Penny.

The funeral service will be held 4:00 PM Thursday, March 11, 2010 at St. Mark's Episcopal Church of bay City with Rev. Susan Kennard officiating. Interment will follow at Cedarvale Cemetery. Pallbearers will be Bill's grandsons. Honorary Pallbearers will be: Jack Conner, Bill Wiginton, Carl Anderson, Lindsey Thompson, E.M. Huitt, Frank Lewis Jr., and John Ashcraft.