First Financial Bankshares Announces Second Quarter Earnings Results

ABILENE, Texas, July 19, 2012 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2012 of $18.35 million, up 11.08 percent compared with earnings of $16.52 million in the same quarter last year.  Basic earnings per share were $0.58 for the second quarter of 2012 compared with $0.53 in the same quarter a year ago.

Net interest income increased 1.00 percent to $38.6 million compared with $38.2 million in 2011. The net interest margin, on a taxable equivalent basis, was 4.33 percent compared with 4.69 percent in the same quarter last year and 4.39 percent in the first quarter of this year. 

The provision for loan losses was $759 thousand in the second quarter of 2012, compared with $1.92 million in the same quarter last year and $1.30 million in the first quarter of this year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.76 percent at June 30, 2012, compared with 1.60 percent at March 31, 2012, and 1.58 percent at June 30, 2011.  Classified loans totaled $80.9 million at June 30, 2012, compared to $90.4 million at March 31, 2012, and $91.7 million at June 30, 2011.

Noninterest income increased 13.20 percent in the second quarter of 2012 to $13.46 million compared with $11.89 million in the same quarter a year ago. Trust fees increased to $3.67 million in the second quarter of 2012 compared with $3.21 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $2.65 billion from $2.45 billion a year ago. ATM, interchange and credit card fees increased 10.81 percent to $3.78 million compared with $3.42 million in the same quarter last year.  Service charges on deposit accounts decreased to $4.04 million during the second quarter of 2012 compared with $4.52 million for the same quarter a year ago, due primarily to decreased customer use of overdraft services. 

Noninterest expense increased in the second quarter of 2012 to $26.75 million from $25.89 million in the same quarter last year. The Company's efficiency ratio in the second quarter of 2012 improved to 48.02 percent compared with 48.65 percent in the same quarter last year.

For the first half of 2012, net income increased 10.03 percent to $36.11 million from $32.82 million a year ago. Basic earnings per share rose to $1.15 in the first half of 2012 from $1.04 in the same period last year. Net interest income increased 1.74 percent to $76.81 million in the first half of 2012 from $75.50 million a year ago. The provision for loan losses totaled $2.06 million compared with $4.05 million in the first half of the previous year. Noninterest income was $26.76 million in the first half of 2012 compared with $24.74 million a year ago. Noninterest expense rose to $53.21 million in the first half of 2012 compared with $52.05 million last year.

As of June 30, 2012, consolidated assets for the Company totaled $4.29 billion compared with $3.84 billion a year ago. Loans grew 11.57 percent and totaled $1.92 billion at quarter end compared with loans of $1.72 billion a year ago. Total deposits were $3.39 billion as of June 30, 2012, which represents an 8.74 percent growth over $3.12 billion a year earlier.  Shareholders' equity rose to $534.26 million as of June 30, 2012, compared with $477.71 million the prior year. 

"We are pleased to report another successful quarter where we experienced solid growth in earnings, loans and trust fees," 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 11 separately chartered banks with 53 locations in Texas. The bank subsidiaries are First Financial Bank, N.A., Abilene, Albany, Clyde, Moran and Odessa; First Financial Bank, N.A., Eastland, Ranger, Cisco and Rising Star; First Financial Bank, N.A., Cleburne, Burleson, Alvarado, Midlothian and Crowley; First Financial Bank, Hereford; First Financial Bank, Huntsville; First Financial Bank, N.A., Mineral Wells; First Financial Bank, N.A., San Angelo; First Financial Bank, N.A., Southlake, Bridgeport, Boyd, Decatur, Grapevine, Keller and Trophy Club; First Financial Bank, N.A., Stephenville, Granbury, Glen Rose and Acton; First Financial Bank, N.A., Sweetwater, Roby, Trent and Merkel; and First Financial Bank, N.A., Weatherford, Willow Park, Aledo, Brock and Fort Worth. 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:




June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 



June 30,


Cash and due from banks


$

122,534


$

131,163


$

146,239


$

127,174


$

106,500


Interest-bearing deposits in banks



25,794



84,169



104,597



103,850



114,776


Interest-bearing time deposits in banks



74,594



62,018



61,175



66,688



78,312


Fed funds sold




10,100



11,200



-



3,580



3,195


Investment securities




1,963,367



1,963,341



1,844,998



1,732,919



1,646,655


Loans




1,918,292



1,798,867



1,786,544



1,728,832



1,719,415



Allowance for loan losses



(34,747)



(34,529)



(34,315)



(34,301)



(33,406)


Net loans




1,883,545



1,764,338



1,752,229



1,694,531



1,686,009


Premises and equipment



80,404



79,308



76,483



73,443



72,550


Goodwill




71,865



71,865



71,865



71,865



71,865


Other intangible assets




175



213



257



341



442


Other assets




59,426



59,635



62,688



61,012



60,711



Total assets



$

4,291,804


$

4,227,250


$

4,120,531


$

3,935,403


$

3,841,015





















LIABILITIES AND SHAREHOLDERS'  EQUITY:
















Noninterest-bearing deposits


$

1,156,238


$

1,125,577


$

1,101,576


$

1,020,953


$

989,271


Interest-bearing deposits



2,235,942



2,272,495



2,233,222



2,165,653



2,130,170



Total deposits




3,392,180



3,398,072



3,334,798



3,186,606



3,119,441


Short-term borrowings




251,428



237,567



207,756



180,790



192,364


Other liabilities




113,933



74,606



69,440



68,808



51,505


Shareholders' equity




534,263



517,005



508,537



499,199



477,705



Total liabilities and shareholders' equity

$

4,291,804


$

4,227,250


$

4,120,531


$

3,935,403


$

3,841,015













































Quarter Ended







2012



2011


INCOME STATEMENTS




June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 



June 30,


Interest income



$

39,911


$

39,797


$

39,888


$

40,164


$

40,241


Interest expense




1,355



1,540



1,704



1,854



2,065


Net interest income




38,556



38,257



38,184



38,310



38,176


Provision for loan losses




759



1,296



1,221



1,354



1,924


Net interest income after provision for loan losses


37,797



36,961



36,963



36,956



36,252


Noninterest income




13,464



13,298



12,792



13,911



11,894


Noninterest expense




26,745



26,468



26,257



26,320



25,888



Net income before income taxes



24,516



23,791



23,498



24,547



22,258


Income tax expense




6,165



6,035



6,032



6,460



5,738



Net income



$

18,351


$

17,756


$

17,466


$

18,087


$

16,520





















PER COMMON SHARE DATA 


















Net income - basic



$

0.58


$

0.56


$

0.56


$

0.58


$

0.53


Net income - diluted




0.58



0.56



0.55



0.57



0.52


Cash dividends 




0.25



0.24



0.24



0.24



0.24


Shares outstanding - end of period



31,481,747



31,477,483



31,459,635



31,452,283



31,451,300


Average outstanding shares - basic



31,478,980



31,466,706



31,454,197



31,451,687



31,442,978


Average outstanding shares - diluted



31,497,241



31,479,743



31,489,304



31,481,092



31,467,617





















PERFORMANCE RATIOS

















Return on average assets



1.75

%


1.73

%


1.74

%


1.87

%


1.74

%

Return on average equity



14.01



13.79



13.88



14.79



14.29


Net interest margin (tax equivalent)



4.33



4.39



4.44



4.62



4.69


Efficiency ratio




48.02



48.08



48.33



47.48



48.65
































































Six Months Ended
















June 30,











INCOME STATEMENTS




2012



2011











Interest income



$

79,708


$

79,968











Interest expense




2,895



4,466











Net interest income




76,813



75,502











Provision for loan losses




2,055



4,051











Net interest income after provision for loan losses


74,758



71,451











Noninterest income




26,762



24,736











Noninterest expense




53,213



52,048












Net income before income taxes



48,307



44,139











Income tax expense




12,200



11,324












Net income



$

36,107


$

32,815






























PER COMMON SHARE DATA 


















Net income - basic



$

1.15


$

1.04











Net income - diluted




1.15



1.04











Cash dividends 




0.49



0.47











Book Value




16.97



15.19











Market Value




34.56



34.45











Shares outstanding - end of period



31,481,747



31,451,300











Average outstanding shares - basic



31,472,843



31,434,328











Average outstanding shares - diluted



31,474,653



31,457,286






























PERFORMANCE RATIOS

















Return on average assets



1.74

%


1.75

%










Return on average equity



13.90



14.57











Net interest margin (tax equivalent)



4.36



4.71











Efficiency ratio




48.05



48.86











 


FIRST FINANCIAL BANKSHARES, INC.


SELECTED FINANCIAL DATA (UNAUDITED)


(In thousands)

























Quarter Ended







2012



2011


ALLOWANCE FOR LOAN LOSSES



June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 



June 30,


Balance at beginning of period


$

34,529


$

34,315


$

34,301


$

33,406


$

32,501


Loans charged off




(766)



(1,405)



(2,195)



(722)



(1,396)


Loan recoveries




225



323



988



263



377


Net charge-offs




(541)



(1,082)



(1,207)



(459)



(1,019)


Provision for loan losses




759



1,296



1,221



1,354



1,924


Balance at end of period



$

34,747


$

34,529


$

34,315


$

34,301


$

33,406





















Allowance for loan losses /

















     period-end loans




1.81

%


1.92

%


1.92

%


1.98

%


1.94

%

Allowance for loan losses /

















     nonperforming loans




130.1



164.3



171.0



194.3



179.6


Net charge-offs / average loans

















     (annualized)




0.12



0.24



0.27



0.11



0.24





















NONPERFORMING ASSETS

















Nonaccrual loans



$

26,606


$

20,963


$

19,975


$

17,598


$

18,599


Accruing loans 90 days past due



105



53



96



52



6



Total nonperforming loans



26,711



21,016



20,071



17,650



18,605


Foreclosed assets




7,149



7,852



9,464



10,254



8,778



Total nonperforming assets


$

33,860


$

28,868


$

29,535


$

27,904


$

27,383





















As a % of loans and foreclosed assets



1.76

%


1.60

%


1.64

%


1.60

%


1.58

%

As a % of end of period total assets



0.79



0.68



0.72



0.71



0.71





















CAPITAL RATIOS


















Tier 1 Risk-based




17.23

%


17.73

%


17.49

%


17.89

%


17.97

%

Total Risk-based




18.48



18.99



18.74



19.14



19.22


Tier 1 Leverage




10.36



10.31



10.33



10.45



10.22


Equity to assets




12.45



12.23



12.34



12.68



12.44
































































Quarter Ended







2012



2011


NONINTEREST INCOME



June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 



June 30,


Trust fees



$

3,670


$

3,454


$

3,151


$

3,265


$

3,211


Service charges on deposits



4,042



3,882



4,313



4,482



4,520


ATM, interchange and credit card fees



3,784



3,676



3,551



3,544



3,415


Real estate mortgage fees



1,218



1,050



1,013



1,056



941


Net gain on sale of available-for-sale securities


382



346



164



67



42


Net gain (loss) on sale of foreclosed assets



(404)



6



(159)



18



(1,111)


Net gain (loss) on sale of assets



105



122



43



588



123


Other noninterest income



667



762



716



891



753



Total Noninterest Income


$

13,464


$

13,298


$

12,792


$

13,911


$

11,894








































NONINTEREST EXPENSE

















Salaries and employee benefits, excluding profit sharing

$

13,304


$

13,186


$

12,753


$

12,790


$

12,916


Profit sharing expense




885



1,043



1,153



1,318



1,092


Net occupancy expense




1,743



1,737



1,707



1,823



1,685


Equipment expense




2,144



2,108



2,008



1,970



1,951


FDIC Insurance premiums



565



527



517



561



597


ATM, interchange and credit card expenses


1,450



1,249



1,311



1,276



1,183


Legal, tax and professional fees



968



1,033



994



947



1,077


Audit  fees




283



295



304



305



276


Printing, stationery and supplies



511



505



473



443



489


Amortization of intangible assets



38



44



84



101



105


Advertising and public relations



953



942



1,105



1,033



870


Correspondent bank service charges



216



200



198



198



208


Other noninterest expense



3,685



3,599



3,650



3,555



3,439



Total Noninterest Expense


$

26,745


$

26,468


$

26,257


$

26,320


$

25,888








































TAX EQUIVALENT YIELD ADJUSTMENT


$

3,673


$

3,495


$

3,348


$

3,209


$

3,145
































































Six Months Ended
















June 30,











NONINTEREST INCOME



2012



2011











Trust fees



$

7,124


$

6,254











Service charges on deposits



7,924



8,894











ATM, interchange and credit card fees



7,460



6,491











Real estate mortgage fees



2,268



1,874











Net gain on sale of available-for-sale securities


728



261











Net gain (loss) on sale of foreclosed assets



(406)



(1,174)











Net gain (loss) on sale of assets



235



266











Other noninterest income



1,429



1,870












Total Noninterest Income


$

26,762


$

24,736

















































NONINTEREST EXPENSE

















Salaries and employee benefits, excluding profit sharing

$

26,491


$

26,027











Profit sharing expense




1,927



2,216











Net occupancy expense




3,480



3,332











Equipment expense




4,252



3,822











FDIC Insurance premiums



1,093



1,568











ATM, interchange and credit card expenses


2,699



2,330











Legal, tax and professional fees



2,002



2,328











Audit  fees




578



549











Printing, stationery and supplies



1,015



916











Amortization of intangible assets



82



216











Advertising and public relations



1,894



1,678











Correspondent bank service charges



416



408











Other noninterest expense



7,284



6,658












Total Noninterest Expense


$

53,213


$

52,048

















































TAX EQUIVALENT YIELD ADJUSTMENT


$

7,167


$

6,294





































































FIRST FINANCIAL BANKSHARES, INC.


SELECTED FINANCIAL DATA (UNAUDITED)


(In thousands)









































Three Months Ended










June 30, 2012










Average



Tax Equivalent



Yield /










Balance



Interest



Rate


Interest-earning assets:















  Fed funds sold






$

6,671


$

6



0.35

%

  Interest-bearing deposits in nonaffiliated banks





128,473



221



0.69

%

  Taxable securities







1,185,081



8,214



2.77

%

  Tax exempt securities







755,511



9,862



5.22

%

  Loans







1,850,408



25,281



5.49

%

Total interest-earning assets






3,926,144



43,584



4.46

%

Noninterest-earning assets






281,042









Total assets






$

4,207,186
























Interest-bearing liabilities:














  Deposits






$

2,260,319


$

1,310



0.23

%

  Fed funds purchased and other short term borrowings





239,599



45



0.08

%

Total interest-bearing liabilities






2,499,918



1,355



0.22

%

Noninterest-bearing liabilities                                                                              

1,180,367








Shareholders' equity







526,901









Total liabilities and shareholders' equity




$

4,207,186
























Net interest income and margin (tax equivalent)







$

42,229



4.33

%









































































Six Months Ended










June 30, 2012










Average



Tax Equivalent



Yield /










Balance



Interest



Rate


Interest-earning assets:















  Fed funds sold






$

5,148


$

8



0.32

%

  Interest-bearing deposits in nonaffiliated banks





130,753



430



0.66

%

  Taxable securities







1,200,932



17,018



2.83

%

  Tax exempt securities







723,294



19,237



5.32

%

  Loans







1,817,300



50,182



5.55

%

Total interest-earning assets






3,877,427



86,875



4.51

%

Noninterest-earning assets






286,204









Total assets






$

4,163,631
























Interest-bearing liabilities:














  Deposits






$

2,256,399


$

2,793



0.25

%

  Fed funds purchased and other short term borrowings





240,672



102



0.09

%

Total interest-bearing liabilities






2,497,071



2,895



0.23

%

Noninterest-bearing liabilities                                                                              

1,144,268








Shareholders' equity







522,292









Total liabilities and shareholders' equity




$

4,163,631
























Net interest income and margin (tax equivalent)







$

83,980



4.36

%


















 

SOURCE First Financial Bankshares, Inc.



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