First Financial Bankshares Announces First Quarter Earnings Results

Apr 18, 2013, 16:05 ET from First Financial Bankshares, Inc.

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.



RELATED LINKS

http://www.ffin.com