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First Financial Bankshares Announces Second Quarter Earnings Results

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ABILENE, Texas, July 18, 2013 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2013 of $19.49 million, up 6.21 percent compared with earnings of $18.35 million in the same quarter last year.  Basic earnings per share were $0.62 for the second quarter of 2013 compared with $0.58 in the same quarter a year ago.

All amounts for the second quarter of 2013 include the results of the Company's acquisition of Orange Savings Bank, SSB, Orange, Texas, which was effective on May 31, 2013. As of May 31, 2013, Orange had total loans of $293.29 million and total deposits of $385.95 million.

Net interest income increased 7.64 percent to $41.50 million compared with $38.56 million in 2012. The net interest margin, on a taxable equivalent basis, was 4.18 percent compared with 4.33 percent in the same quarter last year and 4.19 percent in the first quarter of this year. 

The provision for loan losses was $832 thousand in the second quarter of 2013 compared with $759 thousand in the same quarter last year and $401 thousand in the first quarter of this year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.20 percent at June 30, 2013, compared with 1.20 percent at March 31, 2013, and 1.76 percent at June 30, 2012.  Classified loans totaled $87.83 million at June 30, 2013, compared to $70.18 million at March 31, 2013, and $80.86 million at June 30, 2012. The increase in dollar amount of nonperforming assets and classified loans was primarily from the Orange Savings Bank, SSB acquisition.

Noninterest income increased 12.54 percent in the second quarter of 2013 to $15.15 million compared with $13.46 million in the same quarter a year ago. Trust fees increased to $3.95 million in the second quarter of 2013 compared with $3.67 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $3.05 billion from $2.65 billion a year ago. ATM, interchange and credit card fees increased 10.49 percent to $4.18 million compared with $3.78 million in the same quarter last year.  Real estate mortgage income increased to $1.69 million in the second quarter of 2013 compared with $1.22 million in the same quarter a year ago.

Noninterest expense increased in the second quarter of 2013 to $29.91 million from $26.75 million in the same quarter last year. The Company's efficiency ratio in the second quarter of 2013 was 49.25 percent compared with 48.02 percent in the same quarter last year. Healthcare expenses for the second quarter of 2013 totaled $1.28 million compared to $833 thousand in the same quarter a year ago. Also included in noninterest expense in the second quarter of 2013 was $232 thousand and $226 thousand related to the acquisition of Orange Savings Bank, SSB and database consolidation technology costs, respectively.

For the first half of 2013, net income increased 5.43 percent to $38.07 million from $36.11 million a year ago. Basic earnings per share rose to $1.20 in the first half of 2013 from $1.15 in the same period last year. Net interest income increased 4.37 percent to $80.17 million in the first half of 2013 from $76.81 million in the same period a year ago. The provision for loan losses totaled $1.23 million compared with $2.06 million in the first half of the previous year. Noninterest income was $29.11 million in the first half of 2013 compared with $26.76 million a year ago. Noninterest expense rose to $57.38 million in the first half of 2013 compared with $53.21 million last year.

As of June 30, 2013, consolidated assets for the Company totaled $4.98 billion compared with $4.29 billion a year ago. Loans totaled $2.58 billion at quarter end compared to $1.92 billion a year ago. Total deposits were $3.92 billion as of June 30, 2013, versus $3.39 billion a year earlier.  Shareholders' equity rose to $575.86 million as of June 30, 2013, compared with $534.26 million at June 30, 2012. 

"We are pleased to report another positive quarter and are excited about our Orange acquisition and welcome their employees and customers to First Financial," said F. Scott Dueser, Chairman, President and CEO. "In the second half of the year, we will continue to pursue opportunities for acquisitions and for internal growth while remaining vigilant over expenses and loan quality."

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 12 banking regions with 61 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Decatur, Eastland, Fort Worth, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Mauriceville, McLewis, Merkel, Midlothian, Mineral Wells, Moran, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Trent, Trophy Club, Vidor, Waxahachie, Weatherford and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with six locations and First Technology Services, Inc., a technology operating company.

The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN.  For more information about First Financial Bankshares, please visit our website at http://www.ffin.com.

Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect", "plan", "anticipate", "target", "forecast" and "goal".  Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.  Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the  Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables.  Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents/Filings" on the Company's Web site or by writing or calling the Company at 325.627.7155.  Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.




















FIRST FINANCIAL BANKSHARES, INC.

CONSOLIDATED FINANCIAL SUMMARY  (UNAUDITED) 

(In thousands, except share and per share data)











































As of






2013



2012


ASSETS:





June 30, 



Mar. 31, 



Dec. 31, 



Sept. 30, 



June 30,


Cash and due from banks



$

138,087


$

113,958


$

207,018


$

128,606


$

122,534


Interest-bearing deposits in banks



6,624



20,065



139,676



25,633



25,794


Interest-bearing time deposits in banks



39,350



45,172



49,005



67,506



74,594


Fed funds sold





16,025



3,175



14,045



23,400



10,100


Investment securities




1,975,490



1,959,054



1,820,096



1,883,864



1,963,367


Loans





2,578,883



2,138,137



2,088,623



2,003,854



1,918,292



Allowance for loan losses



(34,099)



(34,672)



(34,839)



(34,932)



(34,747)


Net loans





2,544,784



2,103,465



2,053,784



1,968,922



1,883,545


Premises and equipment




94,808



86,265



84,122



80,580



80,404


Goodwill





94,882



71,865



71,865



71,865



71,865


Other intangible assets




2,366



98



108



136



175


Other assets





70,189



52,863



62,293



60,035



59,426



Total assets



$

4,982,605


$

4,455,980


$

4,502,012


$

4,310,547


$

4,291,804





















LIABILITIES AND SHAREHOLDERS'  EQUITY:
















Noninterest-bearing deposits



$

1,305,049


$

1,237,840


$

1,311,708


$

1,200,154


$

1,156,238


Interest-bearing deposits




2,612,540



2,312,286



2,320,876



2,244,244



2,235,942



Total deposits




3,917,589



3,550,126



3,632,584



3,444,398



3,392,180


Short-term borrowings




431,575



263,345



259,697



254,480



251,428


Other liabilities





57,577



78,257



52,768



61,757



113,933


Shareholders' equity




575,864



564,252



556,963



549,912



534,263



Total liabilities and shareholders' equity

$

4,982,605


$

4,455,980


$

4,502,012


$

4,310,547


$

4,291,804












































Quarter Ended






2013



2012


INCOME STATEMENTS




June 30, 



Mar. 31, 



Dec. 31, 



Sept. 30, 



June 30,


Interest income



$

42,446


$

39,575


$

39,801


$

40,287


$

39,911


Interest expense




946



904



1,049



1,168



1,355


Net interest income




41,500



38,671



38,752



39,119



38,556


Provision for loan losses




832



401



642



787



759


Net interest income after provision for loan losses


40,668



38,270



38,110



38,332



37,797


Noninterest income




15,153



13,960



14,948



15,499



13,464


Noninterest expense




29,911



27,471



28,633



27,203



26,745



Net income before income taxes


25,910



24,759



24,425



26,628



24,516


Income tax expense




6,420



6,182



6,107



6,828



6,165



Net income



$

19,490


$

18,577


$

18,318


$

19,800


$

18,351





















PER COMMON SHARE DATA 


















Net income - basic



$

0.62


$

0.59


$

0.58


$

0.63


$

0.58


Net income - diluted




0.61



0.59



0.58



0.63



0.58


Cash dividends declared




0.26



0.25



0.25



0.25



0.25


Shares outstanding - end of period



31,967,424



31,519,973



31,496,881



31,488,530



31,481,747


Average outstanding shares - basic



31,683,355



31,507,975



31,490,402



31,484,375



31,478,980


Average outstanding shares - diluted



31,809,840



31,601,364



31,530,907



31,502,172



31,497,241





















PERFORMANCE RATIOS


















Return on average assets




1.67

%

1.71

%

1.68

%

1.84

%

1.75

%

Return on average equity




13.53



13.41



13.09



14.53



14.01


Net interest margin (tax equivalent)



4.18



4.19



4.17



4.26



4.33


Efficiency ratio





49.25



48.68



49.86



46.61



48.02













































Six Months Ended
















June 30,











INCOME STATEMENTS




2013



2012











Interest income



$

82,022


$

79,708











Interest expense




1,851



2,895











Net interest income




80,171



76,813











Provision for loan losses




1,233



2,055











Net interest income after provision for loan losses


78,938



74,758











Noninterest income




29,113



26,762











Noninterest expense




57,382



53,213












Net income before income taxes


50,669



48,307











Income tax expense




12,602



12,200












Net income



$

38,067


$

36,107






























PER COMMON SHARE DATA 


















Net income - basic



$

1.20


$

1.15











Net income - diluted




1.20



1.15











Cash dividends 




0.51



0.49











Book Value





18.01



16.97











Market Value





55.66



34.56











Shares outstanding - end of period



31,967,424



31,481,747











Average outstanding shares - basic



31,596,150



31,472,843











Average outstanding shares - diluted



31,709,971



31,474,653






























PERFORMANCE RATIOS


















Return on average assets




1.69

%

1.74

%









Return on average equity




13.47



13.90











Net interest margin (tax equivalent)



4.18



4.36











Efficiency ratio





48.98



48.05

















































 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)











































Quarter Ended






2013



2012


ALLOWANCE FOR LOAN LOSSES



June 30, 



Mar. 31, 



Dec. 31,



Sept. 30,



June 30,


Balance at beginning of period



$

34,672


$

34,839


$

34,932


$

34,747


$

34,529


Loans charged off




(1,570)



(823)



(1,119)



(1,064)



(766)


Loan recoveries




165



255



384



462



225


Net charge-offs





(1,405)



(568)



(735)



(602)



(541)


Provision for loan losses




832



401



642



787



759


Balance at end of period



$

34,099


$

34,672


$

34,839


$

34,932


$

34,747





















Allowance for loan losses /


















     period-end loans



*

1.32

%


1.62

%


1.67

%


1.74

%


1.81

%

Allowance for loan losses /


















     nonperforming loans




128.75



153.87



159.10



143.45



130.08


Net charge-offs / average loans


















     (annualized)




0.24



0.11



0.14



0.12



0.12





















     * Reflects the impact of loans acquired in the Orange Savings Bank, SSB acquisition, which were initially recorded at fair value with no allocated allowance for loan losses





















NONPERFORMING ASSETS


















Nonaccrual loans



$

26,297


$

22,509


$

21,800


$

24,283


$

26,606


Accruing loans 90 days past due



187



24



97



69



105



Total nonperforming loans



26,484



22,533



21,897



24,352



26,711


Foreclosed assets




4,589



3,185



3,565



6,373



7,149



Total nonperforming assets


$

31,073


$

25,718


$

25,462


$

30,725


$

33,860





















As a % of loans and foreclosed assets



1.20

%


1.20

%


1.22

%


1.53

%


1.76

%

As a % of end of period total assets



0.62



0.58



0.57



0.71



0.79





















CAPITAL RATIOS


















Tier 1 risk-based




15.20

%


17.54

%


17.43

%


17.66

%


17.23

%

Total risk-based




16.31



18.80



18.68



18.92



18.48


Tier 1 leverage





10.32



10.69



10.60



10.49



10.36


Equity to assets




11.56



12.66



12.37



12.76



12.45












































Quarter Ended






2013



2012


NONINTEREST INCOME




June 30, 



Mar. 31, 



Dec. 31,



Sept. 30,



June 30,


Trust fees




$

3,953


$

3,793


$

3,616


$

3,723


$

3,670


Service charges on deposits




4,316



3,895



4,432



4,337



4,042


ATM, interchange and credit card fees



4,181



3,729



3,961



3,767



3,784


Real estate mortgage fees




1,686



1,384



1,331



1,495



1,218


Net gain on sale of available-for-sale securities



33



222



565



1,479



382


Net gain (loss) on sale of foreclosed assets



17



(316)



162



(106)



(404)


Net gain (loss) on sale of assets



1



168



5



(32)



105


Other noninterest income




966



1,085



876



836



667



Total noninterest income


$

15,153


$

13,960


$

14,948


$

15,499


$

13,464








































NONINTEREST EXPENSE


















Salaries and employee benefits, excluding profit sharing

$

14,968


$

14,101


$

13,565


$

13,502


$

13,304


Profit sharing expense




1,183



1,079



1,441



1,343



885


Net occupancy expense




2,064



1,766



1,790



1,806



1,743


Equipment expense




2,380



2,281



2,269



2,269



2,144


FDIC insurance premiums




568



572



565



563



565


ATM, interchange and credit card expenses



1,347



1,340



1,432



1,317



1,450


Legal, tax and professional fees



1,272



993



1,162



1,019



968


Audit  fees





351



334



323



311



283


Printing, stationery and supplies



498



472



487



468



511


Amortization of intangible assets



33



10



28



38



38


Advertising and public relations




1,100



994



1,085



998



953


Correspondent bank service charges



222



202



220



220



216


Other noninterest expense




3,925



3,327



4,266



3,349



3,685



Total noninterest expense


$

29,911


$

27,471


$

28,633


$

27,203


$

26,745








































TAX EQUIVALENT YIELD ADJUSTMENT


$

4,082


$

3,795


$

3,727


$

3,743


$

3,673













































Six Months Ended
















June 30,











NONINTEREST INCOME




2013



2012











Trust fees




$

7,746


$

7,124











Service charges on deposits




8,211



7,924











ATM, interchange and credit card fees



7,910



7,460











Real estate mortgage fees




3,069



2,268











Net gain on sale of available-for-sale securities



255



728











Net gain (loss) on sale of foreclosed assets



(299)



(406)











Net gain (loss) on sale of assets



169



235











Other noninterest income




2,052



1,429












Total Noninterest Income


$

29,113


$

26,762






























NONINTEREST EXPENSE


















Salaries and employee benefits, excluding profit sharing

$

29,069


$

26,491











Profit sharing expense




2,262



1,927











Net occupancy expense




3,831



3,480











Equipment expense




4,661



4,252











FDIC Insurance premiums




1,141



1,093











ATM, interchange and credit card expenses



2,687



2,699











Legal, tax and professional fees



2,265



2,002











Audit  fees





685



578











Printing, stationery and supplies



970



1,015











Amortization of intangible assets



43



82











Advertising and public relations




2,094



1,894











Correspondent bank service charges



424



416











Other noninterest expense




7,250



7,284












Total Noninterest Expense


$

57,382


$

53,213

















































TAX EQUIVALENT YIELD ADJUSTMENT


$

7,877


$

7,167











 



















FIRST FINANCIAL BANKSHARES, INC.


SELECTED FINANCIAL DATA (UNAUDITED)


(In thousands)










































Three Months Ended









June 30, 2013










Average



Tax Equivalent



Yield /











Balance



Interest



Rate



Interest-earning assets:
















  Fed funds sold






$

5,918


$

9



0.58

%

  Interest-bearing deposits in nonaffiliated banks





59,333



111



0.75



  Taxable securities







1,066,586



6,313



2.37



  Tax exempt securities







917,460



10,813



4.71



  Loans








2,324,268



29,282



5.05



Total interest-earning assets







4,373,565



46,528



4.27



Noninterest-earning assets







305,201










Total assets






$

4,678,766


























Interest-bearing liabilities:
















  Deposits







$

2,403,899


$

853



0.14

%

  Fed funds purchased and other short term borrowings





405,438



93



0.09



Total interest-bearing liabilities







2,809,337



946



0.14



Noninterest-bearing liabilities                                                                              



1,291,602









Shareholders' equity







577,827










Total liabilities and shareholders' equity




$

4,678,766


























Net interest income and margin (tax equivalent)







$

45,582



4.18

%



























































Six Months Ended









June 30, 2013










Average



Tax Equivalent



Yield /











Balance



Interest



Rate



Interest-earning assets:
















  Fed funds sold






$

9,570


$

14



0.30

%

  Interest-bearing deposits in nonaffiliated banks





91,830



281



0.62



  Taxable securities







1,052,723



12,688



2.41



  Tax exempt securities







871,459



20,886



4.79



  Loans








2,218,292



56,030



5.09



Total interest-earning assets







4,243,874



89,899



4.27



Noninterest-earning assets







302,071










Total assets






$

4,545,945


























Interest-bearing liabilities:
















  Deposits







$

2,362,645


$

1,721



0.15

%

  Fed funds purchased and other short term borrowings





338,549



130



0.08



Total interest-bearing liabilities







2,701,194



1,851



0.14



Noninterest-bearing liabilities                                                                              



1,274,970









Shareholders' equity







569,781










Total liabilities and shareholders' equity




$

4,545,945


























Net interest income and margin (tax equivalent)







$

88,048



4.18

%


















 

SOURCE First Financial Bankshares, Inc.



RELATED LINKS
http://www.ffin.com

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