First Financial Bankshares Announces Fourth Quarter Earnings Results And 26th Year Of Consecutive Earnings Growth

24 Jan, 2013, 16:06 ET from First Financial Bankshares, Inc.

ABILENE, Texas, Jan. 24, 2013 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the fourth quarter of 2012 of $18.32 million, up 4.88 percent compared with earnings of $17.47 million in the same quarter last year.  Basic earnings per share were $0.58 for the fourth quarter of 2012 compared with $0.56 in the same quarter a year ago.

Net interest income for the fourth quarter of 2012 increased 1.49 percent to $38.75 million compared with $38.18 million in the same period of 2011. The net interest margin, on a taxable equivalent basis, was 4.17 percent compared with 4.44 percent in the same quarter last year and 4.26 percent in the third quarter of this year. 

The provision for loan losses was $642 thousand in the fourth quarter of 2012 compared with $1.22 million in the same quarter last year and $787 thousand in the third quarter of this year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.22 percent at December 31, 2012, compared with 1.53 percent at September 30, 2012, and 1.64 percent at December 31, 2011.  Classified loans totaled $67.14 million at December 31, 2012, compared to $76.48 million at September 30, 2012, and $87.31 million at December 31, 2011.

Noninterest income increased 16.85 percent in the fourth quarter of 2012 to $14.95 million compared with $12.79 million in the same quarter a year ago. Trust fees increased to $3.62 million in the fourth quarter of 2012 compared with $3.15 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $2.85 billion from $2.43 billion a year ago. ATM, interchange and credit card fees increased 11.55 percent to $3.96 million compared with $3.55 million in the same quarter last year.  The net gain on securities sold during the fourth quarter of 2012 totaled $565 thousand compared to $164 thousand in the same quarter of 2011.

Noninterest expense increased in the fourth quarter of 2012 to $28.63 million from $26.26 million in the same quarter last year. The Company's efficiency ratio was 49.86 percent in the fourth quarter of 2012 compared with 48.33 percent in the same quarter last year. Included in noninterest expense for the fourth quarter of 2012 was $718 thousand related to the Company's consolidation of its charters and databases, which was discussed in a prior release.

For the year, net income increased 8.57 percent to $74.23 million from $68.37 million in 2011, making 2012 the 26th consecutive year of earnings increases for the Company. Basic earnings per share rose to $2.36 for the year from $2.17 in the previous year.

Net interest income increased 1.77 percent for the year to $154.68 million from $152.00 million a year ago. The provision for loan losses for 2012 totaled $3.48 million compared with $6.63 million in the previous year. Noninterest income was $57.21 million for the year compared with $51.44 million for the same period a year ago. Noninterest expense rose in 2012 to $109.05 million compared with $104.62 million in 2011.

As of December 31, 2012, consolidated assets for the Company totaled $4.50 billion compared with $4.12 billion a year ago. Loans grew 16.91 percent and totaled $2.09 billion at year end compared with loans of $1.79 billion a year ago. Total deposits were $3.63 billion as of December 31, 2012, which represents an 8.93 percent growth over $3.33 billion a year earlier.  Shareholders' equity rose to $556.96 million as of December 31, 2012, compared with $508.54 million in the previous year. 

"We are pleased to report to our shareholders another record breaking year, and the 26th year of increased earnings especially in light of a stagnant National economy and very low interest rates," said F. Scott Dueser, Chairman, President and CEO. "Our company experienced substantial internal growth in deposits and loans which could not have been achieved without the hard work and dedication of my associates and the support we receive from our shareholders and great customers."

About First Financial Bankshares Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 banking regions with 55 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)

Quarter Ended

2012

2011

ASSETS:

Dec. 31, 

Sept. 30, 

June 30,

Mar. 31, 

Dec. 31,

Cash and due from banks

$

207,018

$

128,606

$

122,534

$

131,163

$

146,239

Interest-bearing deposits in banks

139,676

25,633

25,794

84,169

104,597

Interest-bearing time deposits in banks

49,005

67,506

74,594

62,018

61,175

Fed funds sold

14,045

23,400

10,100

11,200

-

Investment securities

1,820,096

1,883,864

1,963,367

1,963,341

1,844,998

Loans

2,088,623

2,003,854

1,918,292

1,798,867

1,786,544

Allowance for loan losses

(34,839)

(34,932)

(34,747)

(34,529)

(34,315)

Net loans

2,053,784

1,968,922

1,883,545

1,764,338

1,752,229

Premises and equipment

84,122

80,580

80,404

79,308

76,483

Goodwill

71,865

71,865

71,865

71,865

71,865

Other intangible assets

108

136

175

213

257

Other assets

62,293

60,035

59,426

59,635

62,688

Total assets

$

4,502,012

$

4,310,547

$

4,291,804

$

4,227,250

$

4,120,531

LIABILITIES AND SHAREHOLDERS'  EQUITY:

Noninterest-bearing deposits

$

1,311,708

$

1,200,154

$

1,156,238

$

1,125,577

$

1,101,576

Interest-bearing deposits

2,320,876

2,244,244

2,235,942

2,272,495

2,233,222

Total deposits

3,632,584

3,444,398

3,392,180

3,398,072

3,334,798

Short-term borrowings

259,697

254,480

251,428

237,567

207,756

Other liabilities

52,768

61,757

113,933

74,606

69,440

Shareholders' equity

556,963

549,912

534,263

517,005

508,537

Total liabilities and shareholders' equity

$

4,502,012

$

4,310,547

$

4,291,804

$

4,227,250

$

4,120,531

Quarter Ended

2012

2011

INCOME STATEMENTS

Dec. 31, 

Sept. 30, 

June 30,

Mar. 31, 

Dec. 31,

Interest income

$

39,801

$

40,287

$

39,911

$

39,797

$

39,888

Interest expense

1,049

1,168

1,355

1,540

1,704

Net interest income

38,752

39,119

38,556

38,257

38,184

Provision for loan losses

642

787

759

1,296

1,221

Net interest income after provision for loan losses

38,110

38,332

37,797

36,961

36,963

Noninterest income

14,948

15,499

13,464

13,298

12,792

Noninterest expense

28,633

27,203

26,745

26,468

26,257

Net income before income taxes

24,425

26,628

24,516

23,791

23,498

Income tax expense

6,107

6,828

6,165

6,035

6,032

Net income

$

18,318

$

19,800

$

18,351

$

17,756

$

17,466

PER COMMON SHARE DATA 

Net income - basic

$

0.58

$

0.63

$

0.58

$

0.56

$

0.56

Net income - diluted

0.58

0.63

0.58

0.56

0.55

Cash dividends declared

0.25

0.25

0.25

0.24

0.24

Shares outstanding - end of period

31,496,881

31,488,530

31,481,747

31,477,483

31,459,635

Average outstanding shares - basic

31,490,402

31,484,375

31,478,980

31,466,706

31,454,197

Average outstanding shares - diluted

31,530,907

31,502,172

31,497,241

31,479,743

31,489,304

PERFORMANCE RATIOS

Return on average assets

1.68

%

1.84

%

1.75

%

1.73

%

1.74

%

Return on average equity

13.09

14.53

14.01

13.79

13.88

Net interest margin (tax equivalent)

4.17

4.26

4.33

4.39

4.44

Efficiency ratio

49.86

46.61

48.02

48.08

48.33

Year Ended

Dec. 31,

INCOME STATEMENTS

2012

2011

Interest income

$

159,796

$

160,021

Interest expense

5,112

8,024

Net interest income

154,684

151,997

Provision for loan losses

3,484

6,626

Net interest income after provision for loan losses

151,200

145,371

Noninterest income

57,209

51,438

Noninterest expense

109,049

104,624

Net income before income taxes

99,360

92,185

Income tax expense

25,135

23,816

Net income

$

74,225

$

68,369

PER COMMON SHARE DATA 

Net income - basic

$

2.36

$

2.17

Net income - diluted

2.36

2.17

Cash dividends declared

0.99

0.95

Book value

17.68

16.16

Market value

39.01

33.43

Shares outstanding - end of period

31,496,881

31,459,635

Average outstanding shares - basic

31,480,155

31,443,712

Average outstanding shares - diluted

31,501,267

31,461,964

PERFORMANCE RATIOS

Return on average assets

1.75

%

1.78

%

Return on average equity

13.85

14.44

Net interest margin (tax equivalent)

4.28

4.62

Efficiency ratio

48.14

48.37

 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Quarter Ended

2012

2011

ALLOWANCE FOR LOAN LOSSES

Dec. 31,

Sept. 30,

June 30,

Mar. 31, 

Dec. 31,

Balance at beginning of period

$

34,932

$

34,747

$

34,529

$

34,315

$

34,301

Loans charged off

(1,119)

(1,064)

(766)

(1,405)

(2,195)

Loan recoveries

384

462

225

323

988

Net charge-offs

(735)

(602)

(541)

(1,082)

(1,207)

Provision for loan losses

642

787

759

1,296

1,221

Balance at end of period

$

34,839

$

34,932

$

34,747

$

34,529

$

34,315

Allowance for loan losses / period-end loans

1.67

%

1.74

%

1.81

%

1.92

%

1.92

%

Allowance for loan losses / nonperforming loans

159.1

143.4

130.1

164.3

171.0

Net charge-offs / average loans (annualized)

0.14

0.12

0.12

0.24

0.27

NONPERFORMING ASSETS

Nonaccrual loans

$

21,800

$

24,283

$

26,606

$

20,963

$

19,975

Accruing loans 90 days past due

97

69

105

53

96

Total nonperforming loans

21,897

24,352

26,711

21,016

20,071

Foreclosed assets

3,565

6,373

7,149

7,852

9,464

Total nonperforming assets

$

25,462

$

30,725

$

33,860

$

28,868

$

29,535

As a % of loans and foreclosed assets

1.22

%

1.53

%

1.76

%

1.60

%

1.64

%

As a % of end of period total assets

0.57

0.71

0.79

0.68

0.72

CAPITAL RATIOS

Tier 1 risk-based

17.43

%

17.66

%

17.23

%

17.73

%

17.49

%

Total risk-based

18.68

18.92

18.48

18.99

18.74

Tier 1 leverage

10.60

10.49

10.36

10.31

10.33

Equity to assets

12.37

12.76

12.45

12.23

12.34

Quarter Ended

2012

2011

NONINTEREST INCOME

Dec. 31,

Sept. 30,

June 30,

Mar. 31, 

Dec. 31,

Trust fees

$

3,616

$

3,723

$

3,670

$

3,454

$

3,151

Service charges on deposits

4,432

4,337

4,042

3,882

4,313

ATM, interchange and credit card fees

3,961

3,767

3,784

3,676

3,551

Real estate mortgage fees

1,331

1,495

1,218

1,050

1,013

Net gain on sale of available-for-sale securities

565

1,479

382

346

164

Net gain (loss) on sale of foreclosed assets

162

(106)

(404)

6

(159)

Net gain (loss) on sale of assets

5

(32)

105

122

43

Other noninterest income

876

836

667

762

716

Total noninterest income

$

14,948

$

15,499

$

13,464

$

13,298

$

12,792

NONINTEREST EXPENSE

Salaries and employee benefits, excluding profit sharing

$

13,565

$

13,502

$

13,304

$

13,186

$

12,753

Profit sharing expense

1,441

1,343

885

1,043

1,153

Net occupancy expense

1,790

1,806

1,743

1,737

1,707

Equipment expense

2,269

2,269

2,144

2,108

2,008

FDIC insurance premiums

565

563

565

527

517

ATM, interchange and credit card expenses

1,432

1,317

1,450

1,249

1,311

Legal, tax and professional fees

1,162

1,019

968

1,033

994

Audit  fees

323

311

283

295

304

Printing, stationery and supplies

487

468

511

505

473

Amortization of intangible assets

28

38

38

44

84

Advertising and public relations

1,085

998

953

942

1,105

Correspondent bank service charges

220

220

216

200

198

Other noninterest expense

4,266

3,349

3,685

3,599

3,650

Total noninterest expense

$

28,633

$

27,203

$

26,745

$

26,468

$

26,257

TAX EQUIVALENT YIELD ADJUSTMENT

$

3,727

$

3,743

$

3,673

$

3,495

$

3,348

Year Ended

Dec. 31,

NONINTEREST INCOME

2012

2011

Trust fees

$

14,464

$

12,671

Service charges on deposits

16,693

17,689

ATM, interchange and credit card fees

15,187

13,587

Real estate mortgage fees

5,094

3,943

Net gain on sale of available-for-sale securities

2,772

492

Net gain (loss) on sale of foreclosed assets

(350)

(1,315)

Net gain (loss) on sale of assets

207

897

Other noninterest income

3,142

3,474

Total noninterest income

$

57,209

$

51,438

NONINTEREST EXPENSE

Salaries and employee benefits, excluding profit sharing

$

53,558

$

51,568

Profit sharing expense

4,711

4,688

Net occupancy expense

7,076

6,862

Equipment expense

8,790

7,800

FDIC insurance premiums

2,220

2,646

ATM, interchange and credit card expenses

5,448

4,918

Legal, tax and professional fees

4,182

4,212

Audit  fees

1,211

1,158

Printing, stationery and supplies

1,970

1,831

Amortization of intangible assets

149

402

Advertising and public relations

3,977

3,817

Correspondent bank service charges

856

804

Other noninterest expense

14,901

13,918

Total noninterest expense

$

109,049

$

104,624

TAX EQUIVALENT YIELD ADJUSTMENT

$

14,637

$

12,851

 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Three Months Ended

Dec. 31, 2012

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Interest-earning assets:

  Fed funds sold

$

15,519

$

-

-

%

  Interest-bearing deposits in nonaffiliated banks

133,782

130

0.39

%

  Taxable securities

1,056,945

6,821

2.58

%

  Tax exempt securities

807,844

9,900

4.90

%

  Loans

2,035,158

26,677

5.21

%

Total interest-earning assets

4,049,248

43,528

4.28

%

Noninterest-earning assets

296,905

Total assets

$

4,346,153

Interest-bearing liabilities:

  Deposits

$

2,267,207

$

990

0.17

%

  Fed funds purchased and other short term borrowings

267,669

59

0.09

%

Total interest-bearing liabilities

2,534,876

1,049

0.16

%

Noninterest-bearing liabilities                                                                              

1,254,694

Shareholders' equity

556,583

Total liabilities and shareholders' equity

$

4,346,153

Net interest income and margin (tax equivalent)

$

42,479

4.17

%

Year Ended

Dec. 31, 2012

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Interest-earning assets:

  Fed funds sold

$

11,589

$

6

0.05

%

  Interest-bearing deposits in nonaffiliated banks

122,999

748

0.61

%

  Taxable securities

1,144,763

31,318

2.74

%

  Tax exempt securities

762,754

39,049

5.12

%

  Loans

1,909,890

103,312

5.41

%

Total interest-earning assets

3,951,995

174,433

4.41

%

Noninterest-earning assets

285,922

Total assets

$

4,237,917

Interest-bearing liabilities:

  Deposits

$

2,255,239

$

4,877

0.22

%

  Fed funds purchased and other short term borrowings

258,863

235

0.09

%

Total interest-bearing liabilities

2,514,102

5,112

0.20

%

Noninterest-bearing liabilities                                                                              

1,187,883

Shareholders' equity

535,932

Total liabilities and shareholders' equity

$

4,237,917

Net interest income and margin (tax equivalent)

$

169,321

4.28

%

SOURCE First Financial Bankshares, Inc.



RELATED LINKS

http://www.ffin.com