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

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.



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