First Financial Bankshares Announces First Quarter Earnings Results

ABILENE, Texas, April 22 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) today reported earnings for the first quarter of 2010 of $13.72 million compared with earnings of $13.70 million in the same quarter last year.  Basic earnings per share were unchanged from the same quarter a year ago at $0.66.  

Results for the first quarter of 2009 included a pre-tax gain of $616,000 on the sale of $73.7 million in student loans to the Department of Education and a $249,000 net gain on securities transactions, both of which were not in the first quarter of 2010.

Net interest income for the first quarter of 2010 increased 2.26 percent to $32.65 million compared with $31.92 million in the same quarter last year. The net interest margin, on a taxable equivalent basis, was 4.69 percent for the first quarter of 2010 compared with 4.76 percent in the same period a year ago and 4.74 percent for the quarter ended December 31, 2009.  The provision for loan losses was $2.01 million in the first quarter of 2010, up from $1.76 million in the same quarter last year.  Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.50 percent at March 31, 2010, compared with 1.46 percent at December 31, 2009, and 95 basis points at March 31, 2009.  

Noninterest income in the first quarter of 2010 was $11.11 million compared with $11.54 million in the same quarter a year earlier. Trust fees increased to $2.53 million in the first quarter of 2010 compared with $2.11 million in the same quarter last year.  Service charges on deposit accounts decreased to $4.86 million during the first quarter compared with $5.14 million a year ago.

Noninterest expense rose 1.70 percent in the first quarter of 2010 to $23.34 million from $22.95 million in the same quarter last year; the largest increases were from profit sharing expense of $245,000 and healthcare expense of $275,000. The Company's efficiency ratio in the first quarter of 2010 was 50.36 percent compared with 50.22 percent in the same quarter a year ago.

As of March 31, 2010, consolidated assets for the Company increased 7.42 percent to $3.35 billion compared with $3.12 billion a year ago.  Loans totaled $1.50 billion at quarter end, compared with loans of $1.48 billion a year ago.  Total deposits were $2.69 billion as of March 31, 2010, compared with $2.52 billion a year earlier.  Shareholders' equity rose to $423.82 million as of March 31, 2010, compared with $381.54 million the prior year.  

"We are pleased to start our new fiscal year with a solid performance in the first quarter, especially in light of the national economic recession and low interest rates and when compared to our 2009 first quarter which included student loan and security gains," said F. Scott Dueser, Chairman, President and CEO. "We continue to aggressively address our nonperforming assets and manage our expenses while being committed to the highest service levels for our customers and shareholders."

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates ten separately chartered banks with 50 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 and Rising Star; First Financial Bank, N.A., Cleburne, Burleson, Alvarado and Midlothian; First Financial Bank, Hereford; First Financial Bank, N.A., Mineral Wells; First Financial Bank, N.A., San Angelo; First Financial Bank, N.A., Southlake, Bridgeport, Boyd, Decatur, 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.

SOURCE First Financial Bankshares, Inc.