2014

First Financial Bankshares Announces Third Quarter Earnings Results

ABILENE, Texas, Oct. 18, 2012 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the third quarter of 2012 of $19.80 million, up 9.47 percent compared with earnings of $18.09 million in the same quarter last year.  Basic earnings per share were $0.63 for the third quarter of 2012 compared with $0.58 in the same quarter a year ago.

Net interest income increased 2.11 percent to $39.12 million compared with $38.31 million in 2011. The net interest margin, on a taxable equivalent basis, was 4.26 percent compared with 4.62 percent in the same quarter last year and 4.33 percent in the second quarter of this year. 

The provision for loan losses was $787 thousand in the third quarter of 2012, compared with $1.35 million in the same quarter last year and $759 thousand in the second quarter of this year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.53 percent at September 30, 2012, compared with 1.76 percent at June 30, 2012, and 1.60 percent at September 30, 2011.  Classified loans totaled $76.48 million at September 30, 2012, compared to $80.86 million at June 30, 2012, and $82.99 million at September 30, 2011.

Noninterest income increased 11.42 percent in the third quarter of 2012 to $15.50 million compared with $13.91 million in the same quarter a year ago. Trust fees increased to $3.72 million in the third quarter of 2012 compared with $3.27 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $2.75 billion from $2.30 billion a year ago. ATM, interchange and credit card fees increased 6.29 percent to $3.77 million compared with $3.54 million in the same quarter last year.  Service charges on deposit accounts decreased to $4.34 million during the third quarter of 2012 compared with $4.48 million for the same quarter a year ago, due primarily to decreased customer use of overdraft services. The net gain on securities sold during the third quarter of 2012 totaled $1.48 million compared to $67 thousand in the same quarter of 2011.

Noninterest expense increased in the third quarter of 2012 to $27.20 million from $26.32 million in the same quarter last year. The Company's efficiency ratio in the third quarter of 2012 improved to 46.61 percent compared with 47.48 percent in the same quarter last year.

For the first nine months of 2012, net income increased 9.83 percent to $55.91 million from $50.90 million for the same period a year ago. Basic earnings per share rose to $1.78 in the first nine months of 2012 from $1.62 in the same period last year. Net interest income increased 1.86 percent to $115.93 million in the first nine months of 2012 from $113.81 million a year ago. The provision for loan losses totaled $2.84 million compared with $5.41 million in the first nine months of the previous year. Noninterest income was $42.26 million in the first nine months of 2012 compared with $38.65 million for the same period a year ago. Noninterest expense rose to $80.42 million in the first nine months of 2012 compared with $78.37 million last year.

As of September 30, 2012, consolidated assets for the Company totaled $4.31 billion compared with $3.94 billion a year ago. Loans grew 15.91 percent and totaled $2.00 billion at quarter end compared with loans of $1.73 billion a year ago. Total deposits were $3.44 billion as of September 30, 2012, which represents an 8.09 percent growth over $3.19 billion a year earlier.  Shareholders' equity rose to $549.91 million as of September 30, 2012, compared with $499.20 million the prior year. 

"This was another good quarter for our company," said F. Scott Dueser, Chairman, President and CEO. "We continue to see good growth in loans and deposits and continue to pursue acquisition prospects to put our capital to use."

Additionally, the Company announced today that it will consolidate its eleven charters into one charter, effective at the end of the 2012 fiscal year, subject to regulatory approval. "Due to regulatory, compliance and technology complexities and the opportunity for additional cost savings, we believe it is time to make this enhancement," stated Scott Dueser. "Outside of consolidating the eleven databases, our banks will continue to operate as they do today with local management and board decisions to benefit the customers and communities we serve," added Dueser.

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 separately chartered banks with 54 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:


Sept. 30, 



June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 


Cash and due from banks

$

128,606


$

122,534


$

131,163


$

146,239


$

127,174


Interest-bearing deposits in banks


25,633



25,794



84,169



104,597



103,850


Interest-bearing time deposits in banks


67,506



74,594



62,018



61,175



66,688


Fed funds sold


23,400



10,100



11,200



-



3,580


Investment securities


1,883,864



1,963,367



1,963,341



1,844,998



1,732,919


Loans


2,003,854



1,918,292



1,798,867



1,786,544



1,728,832



Allowance for loan losses


(34,932)



(34,747)



(34,529)



(34,315)



(34,301)


Net loans


1,968,922



1,883,545



1,764,338



1,752,229



1,694,531


Premises and equipment


80,580



80,404



79,308



76,483



73,443


Goodwill


71,865



71,865



71,865



71,865



71,865


Other intangible assets


136



175



213



257



341


Other assets


60,035



59,426



59,635



62,688



61,012



Total assets

$

4,310,547


$

4,291,804


$

4,227,250


$

4,120,531


$

3,935,403



















LIABILITIES AND SHAREHOLDERS'  EQUITY:
















Noninterest-bearing deposits

$

1,200,154


$

1,156,238


$

1,125,577


$

1,101,576


$

1,020,953


Interest-bearing deposits


2,244,244



2,235,942



2,272,495



2,233,222



2,165,653



Total deposits


3,444,398



3,392,180



3,398,072



3,334,798



3,186,606


Short-term borrowings


254,480



251,428



237,567



207,756



180,790


Other liabilities


61,757



113,933



74,606



69,440



68,808


Shareholders' equity


549,912



534,263



517,005



508,537



499,199



Total liabilities and shareholders' equity

$

4,310,547


$

4,291,804


$

4,227,250


$

4,120,531


$

3,935,403






































Quarter Ended




2012



2011

INCOME STATEMENTS


Sept. 30, 



June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 


Interest income

$

40,287


$

39,911


$

39,797


$

39,888


$

40,164


Interest expense


1,168



1,355



1,540



1,704



1,854


Net interest income


39,119



38,556



38,257



38,184



38,310


Provision for loan losses


787



759



1,296



1,221



1,354


Net interest income after provision for loan losses


38,332



37,797



36,961



36,963



36,956


Noninterest income


15,499



13,464



13,298



12,792



13,911


Noninterest expense


27,203



26,745



26,468



26,257



26,320



Net income before income taxes


26,628



24,516



23,791



23,498



24,547


Income tax expense


6,828



6,165



6,035



6,032



6,460



Net income

$

19,800


$

18,351


$

17,756


$

17,466


$

18,087



















PER COMMON SHARE DATA 
















Net income - basic

$

0.63


$

0.58


$

0.56


$

0.56


$

0.58


Net income - diluted


0.63



0.58



0.56



0.55



0.57


Cash dividends 


0.25



0.25



0.24



0.24



0.24


Shares outstanding - end of period


31,488,530



31,481,747



31,477,483



31,459,635



31,452,283


Average outstanding shares - basic


31,484,375



31,478,980



31,466,706



31,454,197



31,451,687


Average outstanding shares - diluted


31,502,172



31,497,241



31,479,743



31,489,304



31,481,092



















PERFORMANCE RATIOS
















Return on average assets


1.84

%


1.75

%


1.73

%


1.74

%


1.87

%

Return on average equity


14.53



14.01



13.79



13.88



14.79


Net interest margin (tax equivalent)


4.26



4.33



4.39



4.44



4.62


Efficiency ratio


46.61



48.02



48.08



48.33



47.48
























































Nine Months Ended














Sept. 30,











INCOME STATEMENTS


2012



2011











Interest income

$

119,994


$

120,132











Interest expense


4,063



6,320











Net interest income


115,931



113,812











Provision for loan losses


2,842



5,405











Net interest income after provision for loan losses


113,089



108,407











Noninterest income


42,261



38,646











Noninterest expense


80,415



78,367












Net income before income taxes


74,935



68,686











Income tax expense


19,028



17,784












Net income

$

55,907


$

50,902




























PER COMMON SHARE DATA 
















Net income - basic

$

1.78


$

1.62











Net income - diluted


1.78



1.62











Cash dividends 


0.74



0.71











Book value


17.46



15.87











Market value


36.03



26.16











Shares outstanding - end of period


31,488,530



31,452,283











Average outstanding shares - basic


31,476,715



31,440,178











Average outstanding shares - diluted


31,486,707



31,488,129




























PERFORMANCE RATIOS
















Return on average assets


1.78

%


1.79

%










Return on average equity


14.12



14.65











Net interest margin (tax equivalent)


4.32



4.68











Efficiency ratio


47.55



48.39





























FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)




















Quarter Ended




2012



2011


ALLOWANCE FOR LOAN LOSSES


Sept. 30,



June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 


Balance at beginning of period

$

34,747


$

34,529


$

34,315


$

34,301


$

33,406


Loans charged off


(1,064)



(766)



(1,405)



(2,195)



(722)


Loan recoveries


462



225



323



988



263


Net charge-offs


(602)



(541)



(1,082)



(1,207)



(459)


Provision for loan losses


787



759



1,296



1,221



1,354


Balance at end of period

$

34,932


$

34,747


$

34,529


$

34,315


$

34,301



















Allowance for loan losses /
















     period-end loans


1.74

%


1.81

%


1.92

%


1.92

%


1.98

%

Allowance for loan losses /
















     nonperforming loans


143.4



130.1



164.3



171.0



194.3


Net charge-offs / average loans
















     (annualized)


0.12



0.12



0.24



0.27



0.11



















NONPERFORMING ASSETS
















Nonaccrual loans

$

24,283


$

26,606


$

20,963


$

19,975


$

17,598


Accruing loans 90 days past due


69



105



53



96



52



Total nonperforming loans


24,352



26,711



21,016



20,071



17,650


Foreclosed assets


6,373



7,149



7,852



9,464



10,254



Total nonperforming assets

$

30,725


$

33,860


$

28,868


$

29,535


$

27,904



















As a % of loans and foreclosed assets


1.53

%


1.76

%


1.60

%


1.64

%


1.60

%

As a % of end of period total assets


0.71



0.79



0.68



0.72



0.71



















CAPITAL RATIOS
















Tier 1 risk-based


17.66

%


17.23

%


17.73

%


17.49

%


17.89

%

Total risk-based


18.92



18.48



18.99



18.74



19.14


Tier 1 leverage


10.49



10.36



10.31



10.33



10.45


Equity to assets


12.76



12.45



12.23



12.34



12.68























































Quarter Ended




2012



2011


NONINTEREST INCOME


Sept. 30,



June 30,



Mar. 31, 



Dec. 31,



Sept. 30, 


Trust fees

$

3,723


$

3,670


$

3,454


$

3,151


$

3,265


Service charges on deposits


4,337



4,042



3,882



4,313



4,482


ATM, interchange and credit card fees


3,767



3,784



3,676



3,551



3,544


Real estate mortgage fees


1,495



1,218



1,050



1,013



1,056


Net gain on sale of available-for-sale securities


1,479



382



346



164



67


Net gain (loss) on sale of foreclosed assets


(106)



(404)



6



(159)



18


Net gain (loss) on sale of assets


(32)



105



122



43



588


Other noninterest income


836



667



762



716



891



Total noninterest income

$

15,499


$

13,464


$

13,298


$

12,792


$

13,911




































NONINTEREST EXPENSE
















Salaries and employee benefits, excluding profit sharing

$

13,502


$

13,304


$

13,186


$

12,753


$

12,790


Profit sharing expense


1,343



885



1,043



1,153



1,318


Net occupancy expense


1,806



1,743



1,737



1,707



1,823


Equipment expense


2,269



2,144



2,108



2,008



1,970


FDIC insurance premiums


563



565



527



517



561


ATM, interchange and credit card expenses


1,317



1,450



1,249



1,311



1,276


Legal, tax and professional fees


1,019



968



1,033



994



947


Audit  fees


311



283



295



304



305


Printing, stationery and supplies


468



511



505



473



443


Amortization of intangible assets


38



38



44



84



101


Advertising and public relations


998



953



942



1,105



1,033


Correspondent bank service charges


220



216



200



198



198


Other noninterest expense


3,349



3,685



3,599



3,650



3,555



Total noninterest expense

$

27,203


$

26,745


$

26,468


$

26,257


$

26,320




































TAX EQUIVALENT YIELD ADJUSTMENT

$

3,743


$

3,673


$

3,495


$

3,348


$

3,209
























































Nine Months Ended














Sept. 30,











NONINTEREST INCOME


2012



2011











Trust fees

$

10,848


$

9,520











Service charges on deposits


12,261



13,376











ATM, interchange and credit card fees


11,226



10,036











Real estate mortgage fees


3,763



2,930











Net gain on sale of available-for-sale securities


2,206



328











Net gain (loss) on sale of foreclosed assets


(512)



(1,156)











Net gain (loss) on sale of assets


203



854











Other noninterest income


2,266



2,758












Total noninterest income

$

42,261


$

38,646













































NONINTEREST EXPENSE
















Salaries and employee benefits, excluding profit sharing

$

39,993


$

38,816











Profit sharing expense


3,270



3,535











Net occupancy expense


5,286



5,154











Equipment expense


6,521



5,792











FDIC insurance premiums


1,655



2,129











ATM, interchange and credit card expenses


4,017



3,607











Legal, tax and professional fees


3,020



3,217











Audit  fees


889



855











Printing, stationery and supplies


1,483



1,359











Amortization of intangible assets


120



317











Advertising and public relations


2,893



2,711











Correspondent bank service charges


636



606











Other noninterest expense


10,632



10,269












Total noninterest expense

$

80,415


$

78,367













































TAX EQUIVALENT YIELD ADJUSTMENT

$

10,911


$

9,503




























 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)






































Three Months Ended











Sept. 30, 2012











Average



Tax Equivalent



Yield /











Balance



Interest



Rate








Interest-earning assets:
















  Fed funds sold

$

23,924


$

1



0.01

%







  Interest-bearing deposits in nonaffiliated banks


96,878



185



0.76

%







  Taxable securities


1,121,465



7,480



2.67

%







  Tax exempt securities


795,727



9,912



4.98

%







  Loans


1,967,789



26,452



5.35

%







Total interest-earning assets


4,005,783



44,030



4.37

%







Noninterest-earning assets


274,379















Total assets

$

4,280,162































Interest-bearing liabilities:
















  Deposits

$

2,240,977


$

1,094



0.19

%







  Fed funds purchased and other short term

  borrowings


289,568



74



0.10

%







Total interest-bearing liabilities


2,530,545



1,168



0.18

%







Noninterest-bearing liabilities


1,207,352
















Shareholders' equity


542,265















Total liabilities and shareholders' equity

$

4,280,162































Net interest income and margin (tax equivalent)




$

42,862



4.26

%














































































Nine Months Ended











Sept. 30, 2012











Average



Tax Equivalent



Yield /











Balance



Interest



Rate








Interest-earning assets:
















  Fed funds sold

$

11,453


$

9



0.10

%







  Interest-bearing deposits in nonaffiliated banks


119,379



615



0.69

%







  Taxable securities


1,174,249



24,498



2.78

%







  Tax exempt securities


747,614



29,150



5.20

%







  Loans


1,867,829



76,633



5.48

%







Total interest-earning assets


3,920,524



130,905



4.46

%







Noninterest-earning assets


282,235















Total assets

$

4,202,759































Interest-bearing liabilities:
















  Deposits

$

2,251,221


$

3,887



0.23

%







  Fed funds purchased and other short term

  borrowings


257,090



176



0.09

%







Total interest-bearing liabilities


2,508,311



4,063



0.22

%







Noninterest-bearing liabilities


1,165,450
















Shareholders' equity


528,998















Total liabilities and shareholders' equity

$

4,202,759































Net interest income and margin (tax equivalent)




$

126,842



4.32

%
























    

SOURCE First Financial Bankshares, Inc.



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