2014

First Financial Bankshares Announces First Quarter Earnings Results

ABILENE, Texas, April 18, 2013 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the first quarter of 2013 of $18.58 million, up 4.62 percent compared with earnings of $17.76 million in the same quarter last year.  Basic earnings per share were $0.59 for the first quarter of 2013 compared with $0.56 in the same quarter a year ago.

Net interest income increased 1.08 percent to $38.67 million compared with $38.26 million in the same period of 2012. The net interest margin, on a taxable equivalent basis, was 4.19 percent, up two basis points from 4.17 percent in the fourth quarter of 2012. The net interest margin was 4.39 in the first quarter of 2012.

The provision for loan losses was $401 thousand in the first quarter of 2013, compared with $1.30 million in the same quarter last year and $642 thousand in the fourth quarter of 2012.  Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.20 percent at March 31, 2013, compared with 1.22 percent at December 31, 2012, and 1.60 percent at March 31, 2012. Classified loans totaled $70.18 million at March 31, 2013, compared to $67.14 million at December 31, 2012, and $90.36 million at March 31, 2012.

Noninterest income increased 4.98 percent in the first quarter of 2013 to $13.96 million compared with $13.30 million in the same quarter a year ago. Trust fees increased to $3.79 million in the first quarter of 2013 compared with $3.45 million in the same quarter last year primarily due to continued growth in the fair value of Trust assets managed to $3.02 billion from $2.63 billion a year ago.  Real estate mortgage fees increased 31.81 percent to $1.38 million compared with $1.05 million in the same quarter last year due to a stronger housing market and increased market share.

Noninterest expense increased in the first quarter of 2013 to $27.47 million from $26.47 million in the same quarter last year. The Company's efficiency ratio in the first quarter of 2013 was 48.68 percent compared with 48.08 percent in the same quarter last year. Included in noninterest expense for the first quarter of 2013 was $143 thousand, primarily legal and travel, related to the Company's recently announced acquisition of Orange Savings Bank, SSB, which is expected to close in the second quarter of 2013.

As of March 31, 2013, consolidated assets for the Company totaled $4.46 billion compared with $4.23 billion a year ago.  Loans grew 18.86 percent and totaled $2.14 billion at quarter end compared to $1.80 billion a year ago.  Total deposits were $3.55 billion as of March 31, 2013, which represents a 4.47 percent growth over $3.40 billion a year earlier.  Shareholders' equity rose to $564.25 million as of March 31, 2013, compared with $517.01 million at March 31, 2012. 

"We are pleased to report another profitable quarter for our company," said F. Scott Dueser, Chairman, President and CEO.  "We continue to see good growth in earnings and loans while continuing to work to improve our efficiencies and are excited about our upcoming acquisition of Orange Savings Bank."  

About First Financial Bankshares
Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 banking regions with 56 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Crowley, Decatur, Eastland, Fort Worth, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Merkel, Midlothian, Mineral Wells, Moran, Odessa, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Trent, Trophy Club, 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:



Mar. 31, 



Dec. 31, 



Sept. 30, 



June 30,



Mar. 31, 


Cash and due from banks


$

113,958


$

207,018


$

128,606


$

122,534


$

131,163


Interest-bearing deposits in banks



20,065



139,676



25,633



25,794



84,169


Interest-bearing time deposits in banks



45,172



49,005



67,506



74,594



62,018


Fed funds sold



3,175



14,045



23,400



10,100



11,200


Investment securities



1,959,054



1,820,096



1,883,864



1,963,367



1,963,341


Loans



2,138,137



2,088,623



2,003,854



1,918,292



1,798,867



Allowance for loan losses



(34,672)



(34,839)



(34,932)



(34,747)



(34,529)


Net loans



2,103,465



2,053,784



1,968,922



1,883,545



1,764,338


Premises and equipment



86,265



84,122



80,580



80,404



79,308


Goodwill



71,865



71,865



71,865



71,865



71,865


Other intangible assets



98



108



136



175



213


Other assets



52,863



62,293



60,035



59,426



59,635



Total assets


$

4,455,980


$

4,502,012


$

4,310,547


$

4,291,804


$

4,227,250





















LIABILITIES AND SHAREHOLDERS'  EQUITY:

















Noninterest-bearing deposits


$

1,237,840


$

1,311,708


$

1,200,154


$

1,156,238


$

1,125,577


Interest-bearing deposits



2,312,286



2,320,876



2,244,244



2,235,942



2,272,495



Total deposits



3,550,126



3,632,584



3,444,398



3,392,180



3,398,072


Short-term borrowings



263,345



259,697



254,480



251,428



237,567


Other liabilities



78,257



52,768



61,757



113,933



74,606


Shareholders' equity



564,252



556,963



549,912



534,263



517,005



Total liabilities and shareholders' equity


$

4,455,980


$

4,502,012


$

4,310,547


$

4,291,804


$

4,227,250












































Quarter Ended






2013



2012


INCOME STATEMENTS



Mar. 31, 



Dec. 31, 



Sept. 30, 



June 30,



Mar. 31, 


Interest income


$

39,575


$

39,801


$

40,287


$

39,911


$

39,797


Interest expense



904



1,049



1,168



1,355



1,540


Net interest income



38,671



38,752



39,119



38,556



38,257


Provision for loan losses



401



642



787



759



1,296


Net interest income after provision for loan losses



38,270



38,110



38,332



37,797



36,961


Noninterest income



13,960



14,948



15,499



13,464



13,298


Noninterest expense



27,471



28,633



27,203



26,745



26,468



Net income before income taxes



24,759



24,425



26,628



24,516



23,791


Income tax expense



6,182



6,107



6,828



6,165



6,035



Net income


$

18,577


$

18,318


$

19,800


$

18,351


$

17,756





















PER COMMON SHARE DATA 

















Net income - basic


$

0.59


$

0.58


$

0.63


$

0.58


$

0.56


Net income - diluted



0.59



0.58



0.63



0.58



0.56


Cash dividends declared



0.25



0.25



0.25



0.25



0.24


Shares outstanding - end of period



31,519,973



31,496,881



31,488,530



31,481,747



31,477,483


Average outstanding shares - basic



31,507,975



31,490,402



31,484,375



31,478,980



31,466,706


Average outstanding shares - diluted



31,601,364



31,530,907



31,502,172



31,497,241



31,479,743





















PERFORMANCE RATIOS

















Return on average assets



1.71

%


1.68

%


1.84

%


1.75

%


1.73

%

Return on average equity



13.41



13.09



14.53



14.01



13.79


Net interest margin (tax equivalent)



4.19



4.17



4.26



4.33



4.39


Efficiency ratio



48.68



49.86



46.61



48.02



48.08


 

 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)











































Quarter Ended






2013



2012


ALLOWANCE FOR LOAN LOSSES



Mar. 31, 



Dec. 31,



Sept. 30,



June 30,



Mar. 31, 


Balance at beginning of period


$

34,839


$

34,932


$

34,747


$

34,529


$

34,315


Loans charged off



(823)



(1,119)



(1,064)



(766)



(1,405)


Loan recoveries



255



384



462



225



323


Net charge-offs



(568)



(735)



(602)



(541)



(1,082)


Provision for loan losses



401



642



787



759



1,296


Balance at end of period


$

34,672


$

34,839


$

34,932


$

34,747


$

34,529





















Allowance for loan losses / period-end loans



















1.62

%


1.67

%


1.74

%


1.81

%


1.92

%

Allowance for loan losses / nonperforming loans



















153.9



159.1



143.4



130.1



164.3


Net charge-offs / average loans (annualized)



















0.11



0.14



0.12



0.12



0.24





















NONPERFORMING ASSETS

















Nonaccrual loans


$

22,509


$

21,800


$

24,283


$

26,606


$

20,963


Accruing loans 90 days past due



24



97



69



105



53



Total nonperforming loans



22,533



21,897



24,352



26,711



21,016


Foreclosed assets



3,185



3,565



6,373



7,149



7,852



Total nonperforming assets


$

25,718


$

25,462


$

30,725


$

33,860


$

28,868





















As a % of loans and foreclosed assets



1.20

%


1.22

%


1.53

%


1.76

%


1.60

%

As a % of end of period total assets



0.58



0.57



0.71



0.79



0.68





















CAPITAL RATIOS

















Tier 1 risk-based



17.54

%


17.43

%


17.66

%


17.23

%


17.73

%

Total risk-based



18.80



18.68



18.92



18.48



18.99


Tier 1 leverage



10.69



10.60



10.49



10.36



10.31


Equity to assets



12.66



12.37



12.76



12.45



12.23












































Quarter Ended






2013



2012


NONINTEREST INCOME



Mar. 31, 



Dec. 31,



Sept. 30,



June 30,



Mar. 31, 


Trust fees


$

3,793


$

3,616


$

3,723


$

3,670


$

3,454


Service charges on deposits



3,895



4,432



4,337



4,042



3,882


ATM, interchange and credit card fees



3,729



3,961



3,767



3,784



3,676


Real estate mortgage fees



1,384



1,331



1,495



1,218



1,050


Net gain on sale of available-for-sale securities



222



565



1,479



382



346


Net gain (loss) on sale of foreclosed assets



(316)



162



(106)



(404)



6


Net gain (loss) on sale of assets



168



5



(32)



105



122


Other noninterest income



1,085



876



836



667



762



Total noninterest income


$

13,960


$

14,948


$

15,499


$

13,464


$

13,298








































NONINTEREST EXPENSE

















Salaries and employee benefits, excluding profit sharing


$

14,101


$

13,565


$

13,502


$

13,304


$

13,186


Profit sharing expense



1,079



1,441



1,343



885



1,043


Net occupancy expense



1,766



1,790



1,806



1,743



1,737


Equipment expense



2,281



2,269



2,269



2,144



2,108


FDIC insurance premiums



572



565



563



565



527


ATM, interchange and credit card expenses



1,340



1,432



1,317



1,450



1,249


Legal, tax and professional fees



993



1,162



1,019



968



1,033


Audit  fees



334



323



311



283



295


Printing, stationery and supplies



472



487



468



511



505


Amortization of intangible assets



10



28



38



38



44


Advertising and public relations



994



1,085



998



953



942


Correspondent bank service charges



202



220



220



216



200


Other noninterest expense



3,327



4,266



3,349



3,685



3,599



Total noninterest expense


$

27,471


$

28,633


$

27,203


$

26,745


$

26,468








































TAX EQUIVALENT YIELD ADJUSTMENT


$

3,795


$

3,727


$

3,743


$

3,673


$

3,495


 

 


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)
















Three Months Ended





Mar. 31, 2013





Average



Tax Equivalent



Yield /





Balance



Interest



Rate


Interest-earning assets:










  Fed funds sold

$

12,907


$

5



0.17

%

  Interest-bearing deposits in nonaffiliated banks


124,688



171



0.56

%

  Taxable securities


1,038,706



6,375



2.45

%

  Tax exempt securities


824,947



10,073



4.88

%

  Loans


2,111,138



26,747



5.14

%

Total interest-earning assets


4,112,386



43,371



4.28

%

Noninterest-earning assets


298,906









Total assets

$

4,411,292



















Interest-bearing liabilities:










  Deposits

$

2,320,932


$

868



0.15

%

  Fed funds purchased and other short term borrowings


270,561



37



0.06

%

Total interest-bearing liabilities


2,591,493



905



0.14

%

Noninterest-bearing liabilities                                                                              


1,258,152








Shareholders' equity


561,647









Total liabilities and shareholders' equity

$

4,411,292



















Net interest income and margin (tax equivalent)




$

42,466



4.19

%

 

SOURCE First Financial Bankshares, Inc.



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