First Financial Bankshares Announces Fourth Quarter Results and 23rd Year of Consecutive Earnings Growth

Jan 28, 2010, 16:05 ET from First Financial Bankshares, Inc.

ABILENE, Texas, Jan. 28 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) today reported earnings for the fourth quarter of 2009 of $12.54 million, down 3.8 percent compared with earnings of $13.04 million in the same quarter last year.  For the year, net income increased 1.19 percent to $53.80 million in 2009 from $53.16 million the previous year, making 2009 the Company's 23rd consecutive year of earnings growth.

Basic earnings per share were $0.60 for the fourth quarter of 2009 compared with $0.63  a year ago.  For the year, basic earnings per share were $2.58, compared with $2.56 in the previous year.

Net interest income for the fourth quarter of 2009 was $32.54 million compared with $32.65 million in the same quarter last year. The net interest margin, on a taxable equivalent basis, was 4.74 percent for the fourth quarter of 2009 compared with 4.77 percent in the same period a year ago and 4.92 percent for the quarter ended September 30, 2009.  The provision for loan losses was $4.37 million in the fourth quarter of 2009, up from $3.68 million in the same quarter last year.  Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.46 percent at December 31, 2009, compared with 1.30 basis points at September 30, 2009, and 80 basis points at December 31, 2008.  

Noninterest income in the fourth quarter of 2009 was $12.06 million compared with $11.40 million in the same quarter a year earlier. Trust fees increased to $2.51 million in the fourth quarter of 2009 compared with $2.21 million in the same quarter last year.  Service charges on deposit accounts were $5.66 million compared with $5.59 million a year ago.  Real estate mortgage fees increased to $732,000 from $518,000 in the same quarter last year.  ATM and debit card fees increased to $2.48 million from $2.28 million a year ago.  

Noninterest expense rose 5.1 percent in the fourth quarter of 2009 to $23.68 million from $22.53 million in the same quarter last year.  FDIC insurance premiums were $819,000 during the fourth quarter, compared with $214,000 in the same quarter last year. The Company's efficiency ratio in the fourth quarter of 2009 was 50.18 percent compared with 48.88 percent in the same quarter a year ago. Salaries and employee benefits increased to $13.05 million from $11.74 million a year ago primarily due to increased pension plan expense, which was frozen in 2003, and the opportunity to hire additional high quality and experienced bankers.

As previously noted, the Company reported its 23rd consecutive year of earnings growth in 2009, with net income of $53.80 million in 2009 compared with $53.16 million the previous year.  Net interest income increased 4.3 percent to $129.17 million from $123.90 million last year.  Noninterest income decreased 1.73 percent from $49.45 million to $48.60 million primarily due to less usage of overdraft privilege and a $692,000 decline in income from student loan sales as the Company exited the student loan program.  Noninterest expense was $94.00 million in 2009, up 2.6 percent from $91.59 million a year ago.  Salaries and employee benefits increased to $49.49 million from $45.29 million a year ago. The largest increase in noninterest expenses was FDIC insurance premiums which increased $4.24 million over the prior year.

As of December 31, 2009, consolidated assets for the Company totaled $3.28 billion compared with $3.21 billion a year ago.  Loans totaled $1.51 billion at quarter end, compared with loans of $1.57 billion a year ago.  Total deposits were $2.68 billion as of December 31, 2009, compared with $2.58 billion a year earlier.  Shareholders' equity rose to $415.70 million as of December 31, 2009, compared with $368.78 million the prior year.  

"We are extremely pleased to report another year of earnings growth, especially in light of the challenges of the national recession, low interest rates, higher loan loss provisions and a significant increase in FDIC insurance premiums," said F. Scott Dueser, Chairman, President and Chief Executive Officer. "Throughout the year, our bank presidents did an exceptional job of managing their net interest margin, improving their efficiencies and minimizing credit losses.  We continue to aggressively address our nonperforming assets and are committed to the highest performance and service for our shareholders and customers."

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates ten separately chartered banks with 48 locations in Texas. The bank subsidiaries are First Financial Bank, N.A., Abilene, Albany, Clyde and Moran; 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 and Brock. 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 Web site 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)         
                                                                     
                                                                     
                                                      December 31,   
                                                    ---------------- 
                                                    2009        2008 
                                                    ----        ---- 
    ASSETS:                                                          
    Cash and due from banks                     $139,917    $137,570 
    Interest bearing deposits in banks           167,336       3,658 
    Fed funds sold                                14,290      27,660 
    Investment securities                      1,285,377   1,318,406 
    Loans                                      1,514,368   1,566,143 
      Allowance for loan losses                  (27,612)    (21,529)
                                                 -------     ------- 
    Net loans                                  1,486,756   1,544,614 
    Premises and equipment                        64,363      65,675 
    Goodwill                                      62,112      62,112 
    Other intangible assets                        1,040       1,891 
    Other assets                                  58,265      50,799 
                                                  ------      ------ 
      Total assets                            $3,279,456  $3,212,385 
                                              ==========  ========== 
                                                                     
    LIABILITIES AND SHAREHOLDERS'  EQUITY:                           
    Noninterest-bearing deposits                $836,323    $797,077 
    Interest-bearing deposits                  1,848,434   1,785,676 
                                               ---------   --------- 
      Total deposits                           2,684,757   2,582,753 
    Short-term borrowings                        146,094     235,598 
    Other liabilities                             32,903      25,252 
    Shareholders' equity                         415,702     368,782 
                                                 -------     ------- 
      Total liabilities and shareholders'                            
       equity                                 $3,279,456  $3,212,385 
                                              ==========  ========== 
                                                                     
                                                                     
                         Three Months Ended           Year Ended     
                            December 31,              December 31,   
                         ------------------        ----------------
    INCOME STATEMENTS     2009         2008        2009        2008 
                         -----         ----        ----        ---- 
    
    Interest income      $36,417     $39,239    $146,445    $159,154 
    Interest expense       3,872       6,593      17,274      35,259 
                           -----       -----      ------      ------ 
    Net interest                                                     
     income               32,545      32,646     129,171     123,895 
    Provision for                                                    
     loan losses           4,365       3,683      11,419       7,957 
                           -----       -----      ------       ----- 
    Net interest                                                     
     income after                                                    
     provision for                                                   
     loan losses          28,180      28,963     117,752     115,938 
    Noninterest                                                      
     income               12,061      11,395      48,598      49,453 
    Noninterest                                                      
     expense              23,675      22,532      94,000      91,587 
                          ------      ------      ------      ------ 
      Net income                                                     
       before income                                                 
       taxes              16,566      17,826      72,350      73,804 
    Income tax                                                       
     expense               4,025       4,787      18,553      20,640 
                           -----       -----      ------      ------ 
      Net income         $12,541     $13,039     $53,797     $53,164 
                         =======     =======     =======     ======= 
                                                                     
                                                                     
    PER COMMON SHARE DATA                                            
    Net income -                                                     
     basic                 $0.60       $0.63       $2.58       $2.56 
    Net income -                                                     
     diluted                0.60        0.62        2.58        2.55 
    Cash dividends          0.34        0.34        1.36        1.34 
    Book value                                     19.96       17.73 
    Market value                                   54.23       55.21 
    Shares                                                           
     outstanding -                                                   
     end of period    20,826,431  20,799,198  20,826,431  20,799,198 
    Average                                                          
     outstanding                                                     
     shares - basic   20,823,913  20,794,783  20,813,590  20,787,243 
    Average                                                          
     outstanding                                                     
     shares - diluted 20,851,925  20,863,659  20,837,457  20,841,363 
                                                                     
    PERFORMANCE RATIOS                                               
    Return on                                                        
     average assets         1.56%       1.64%       1.72%       1.74%
    Return on                                                        
     average equity        12.07       14.79       13.63       15.27 
    Net interest                                                     
     margin (tax                                                     
     equivalent)            4.74        4.77        4.80        4.67 
    Efficiency ratio       50.18       48.88       50.11       50.76
    
    
    
                             FIRST FINANCIAL BANKSHARES, INC.                 
                           SELECTED FINANCIAL DATA (UNAUDITED)                
                                      (In thousands)                          
                                                                              
                                      Quarter Ended        
                     -------------------------------------------------------  
                                          2009                       2008 
                     --------------------------------------------  --------- 
                      Dec. 31,   Sept. 30,   June 30,   March 31,   Dec. 31, 
                     ---------  ----------  ---------  ----------  --------- 
                                                                              
    ALLOWANCE FOR                                                             
     LOAN LOSSES                                                              
    Balance at                                                               
     beginning of                                                           
     period              $25,532   $23,247    $22,652   $21,529    $20,048 
    Loans charged                                                          
     off                  (2,430)   (1,662)    (1,225)     (893)    (2,406)
    Loan                                                                   
     recoveries              145       241        232       255        204 
                             ---       ---        ---       ---        --- 
    Net charge-                                                            
     offs                 (2,285)   (1,421)      (993)     (638)    (2,202)
    Provision for                                                          
     loan losses           4,365     3,706      1,588     1,761      3,683 
                           -----     -----      -----     -----      ----- 
    Balance at end                                                         
     of period           $27,612   $25,532    $23,247   $22,652    $21,529 
                         =======   =======    =======   =======    ======= 
                                                                           
    Allowance for                                                          
     loan losses /                                                         
     period-end                                                            
     loans                  1.82%     1.76%      1.57%     1.53%      1.37%
    Allowance for                                                          
     loan losses /                                                         
     nonperforming                                                     
     loans                 148.8     174.4      225.4     233.5      216.8 
    Net charge-                                                            
     offs /average                                                         
     loans                                                                 
     (annualized)           0.62      0.38       0.27      0.17       0.56 
                                                                           
                                                                           
    NONPERFORMING ASSETS                                                   
    Nonaccrual                                                             
     loans               $18,540   $14,585    $10,242    $9,606     $9,893 
    Accruing loans                                                         
     90 days past                                                          
     due                      15        56         72        94         36 
                              --        --         --        --         -- 
         Total                                                             
          nonperforming                                                    
          loans           18,555    14,641     10,314     9,700      9,929 
    Foreclosed                                                             
     assets                3,533     4,367      3,755     4,415      2,602 
                           -----     -----      -----     -----      ----- 
         Total                                                             
          nonperforming                                                    
          assets         $22,088   $19,008    $14,069   $14,115    $12,531 
                         =======   =======    =======   =======    ======= 
                                                                           
    As a % of                                                              
     loans and                                                             
     foreclosed                                                            
     assets                 1.46%     1.30%      0.95%     0.95%      0.80%
    As a % of end                                                          
     of period                                                             
     total assets           0.67      0.62       0.46      0.45       0.39 
                                                                           
    CAPITAL RATIOS                                                         
    Tier 1 Risk-                                                           
     based                 17.73%    18.12%     17.36%    16.80%     15.89%
    Total Risk-                                                            
     based                 18.99     19.37      18.61     18.05      17.04 
    Tier 1                                                                 
     Leverage              10.69     10.83      10.53     10.01       9.68 
    Equity to                                                              
     assets                12.68     13.51      12.64     12.22      11.48
    
    
    
                                        Three Months Ended      Year Ended 
                                           December 31,         December 31, 
                                        ------------------    --------------
    NONINTEREST INCOME                    2009       2008     2009      2008
                                        ------      ------    ----      ----
    Gain (loss) on sale of student                                          
     loans, net                            $94      $(42)     $983    $1,675
    Gain on securities transactions,                                        
     net                                   206       346     1,851     1,052
    Trust fees                           2,513     2,211     9,083     9,441
    Service charges on deposits          5,662     5,591    21,956    22,597
    Real estate mortgage fees              732       518     2,909     2,536
    Net gain (loss) on sale of                                              
     foreclosed assets                    (361)     (111)     (548)        5
    ATM and credit card fees             2,484     2,281     9,546     8,904
    Other noninterest income               731       601     2,818     3,243
                                           ---       ---     -----     -----
         Total Noninterest Income      $12,061   $11,395   $48,598   $49,453
                                       =======   =======   =======   =======
                                                                            
                                                                            
    NONINTEREST EXPENSE                                                     
    Salaries and employee benefits,                                         
     excluding profit sharing          $12,431   $11,291   $47,126   $45,879
    Profit sharing expense                 621       449     2,360     3,406
    Net occupancy expense                1,508     1,670     6,293     6,735
    Equipment expense                    1,915     1,941     7,743     7,547
    Printing, stationery and supplies      486       458     1,892     1,891
    ATM and credit card expenses           738     1,172     3,200     4,443
    Audit  fees                            224       310     1,063     1,194
    Legal, tax and professional fees       782       769     3,253     2,977
    FDIC Insurance premiums                819       214     4,893       652
    Correspondent bank service                                              
     charges                               193       300     1,032     1,169
    Advertising and public relations       783       655     2,566     2,590
    Amortization of intangible assets      199       287       851     1,204
    Other noninterest expense            2,976     3,016    11,728    11,900
                                         -----     -----    ------    ------
         Total Noninterest Expense     $23,675   $22,532   $94,000   $91,587
                                       =======   =======   =======   =======
                                                                            
                                                                            
                                                                            
    TAX EQUIVALENT YIELD ADJUSTMENT     $2,575    $2,060    $9,832    $7,087
                                        ======    ======    ======    ======
    
    
    
                       FIRST FINANCIAL BANKSHARES, INC.                  
                      SELECTED FINANCIAL DATA (UNAUDITED)                 
                                (In thousands)                           
                                                                         
                                               Three Months Ended        
                                                December 31, 2009      
                                       ----------------------------------
                                        Average    Tax Equivalent  Yield /
                                        Balance       Interest      Rate  
                                        -------    -------------- -------  
                                                                         
    Interest-earning assets:                                             
      Fed funds sold                      $21,507              $7   0.13%
      Interest-bearing deposits in                                       
       nonaffiliated banks                142,242             198   0.55%
      Taxable securities                  852,384           9,013   4.23%
      Tax exempt securities               455,022           6,992   6.15%
      Loans                             1,466,614          22,782   6.16%
                                        ---------          ------   ---- 
    Total interest-earning assets       2,937,769          38,992   5.27%
    Noninterest-earning assets            243,379                        
                                          -------                        
    Total assets                       $3,181,148                        
                                       ==========                        
                                                                         
    Interest-bearing liabilities:                                        
      Deposits                         $1,787,736          $3,706   0.82%
      Fed funds purchased and other                                      
       short term borrowings              159,052             166   0.41%
                                          -------             ---   ---- 
    Total interest-bearing                                               
     liabilities                        1,946,788           3,872   0.79%
                                                            -----        
    Noninterest-bearing                                                  
     liabilities                          822,065                        
    Shareholders' equity                  412,295                        
                                          -------                        
    Total liabilities and                                                
     shareholders' equity              $3,181,148                        
                                       ==========                        
                                                                         
    Net interest income and margin (tax                                  
     equivalent)                                          $35,120   4.74%
                                                          =======   ==== 
                                                                         
                                                                         
                                                   Year Ended            
                                                December 31, 2009        
                                        ---------------------------------
                                        Average    Tax Equivalent  Yield /
                                        Balance       Interest      Rate  
                                        -------    -------------- -------
                                                                         
    Interest-earning assets:                                             
      Fed funds sold                      $33,527             $74   0.22%
      Interest-bearing deposits in                                       
       nonaffiliated banks                 58,227             341   0.59%
      Taxable securities                  874,331          37,115   4.24%
      Tax exempt securities               433,780          26,950   6.21%
      Loans                             1,494,876          91,797   6.14%
                                        ---------          ------   ---- 
    Total interest-earning assets       2,894,741         156,277   5.40%
    Noninterest-earning assets            230,811                        
                                          -------                        
    Total assets                       $3,125,552                        
                                       ==========                        
                                                                         
    Interest-bearing liabilities:                                        
      Deposits                         $1,755,275         $16,474   0.94%
      Fed funds purchased and other                                      
       short term borrowings              183,228             800   0.44%
                                          -------             ---   ---- 
    Total interest-bearing                                               
     liabilities                        1,938,503          17,274   0.89%
                                                           ------        
    Noninterest-bearing                                                  
     liabilities                          792,237                        
    Shareholders' equity                  394,812                        
                                          -------                        
    Total liabilities and                                                
     shareholders' equity              $3,125,552                        
                                       ==========                        
                                                                         
    Net interest income and margin (tax                                  
     equivalent)                                         $139,003   4.80%
                                                         ========   ====
    
    

SOURCE First Financial Bankshares, Inc.



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http://www.ffin.com