First Financial Bankshares Announces Fourth Quarter Results and 24th Year of Consecutive Earnings Growth

ABILENE, Texas, Jan. 27, 2011 /PRNewswire/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) today reported earnings for the fourth quarter of 2010 of $15.51 million, up 23.7 percent compared with earnings of $12.54 million in the same quarter last year.  Basic earnings per share were $0.74 for the fourth quarter of 2010 compared with $0.60 in the same quarter of 2009.

For the year, net income increased 10.9 percent to $59.66 million compared with $53.80 million in 2009, making 2010 the Company's 24th consecutive year of earnings growth.  Basic earnings per share for the year were $2.86 compared with $2.58 in the previous year.  Results for the year included net proceeds after income tax of $1.30 million, reported in the 2010 third quarter, from the expropriation of company-owned property in Southlake, Texas, by the Texas Department of Transportation.  Excluding this extraordinary item, net income for the year would have been $58.36 million, an 8.5 percent increase compared with 2009.

Net interest income for the fourth quarter of 2010 increased 11.1 percent to $36.15 million compared with $32.55 million in the same quarter last year. The net interest margin, on a taxable equivalent basis, was 4.69 percent for the fourth quarter of 2010 compared with 4.74 percent in the same period a year ago and 4.67 percent in the third quarter of 2010.

The provision for loan losses was $1.99 million in the fourth quarter of 2010, down from $4.37 million in the same quarter last year and unchanged from the third quarter of this year.  Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.53 percent at December 31, 2010, compared with 1.45 percent at September 30, 2010.  Subsequent to December 31, 2010, a loan totaling $2.1 million, which was past due 90 days and still accruing paid off.  The continued provision for loan losses in the fourth quarter of 2010 reflects the growth in loans and higher levels of nonperforming assets.

Noninterest income in the fourth quarter of 2010 was $12.87 million compared with $12.06 million in the same quarter a year earlier. Trust fees increased to $2.91 million in the fourth quarter of 2010 compared with $2.51 million in the same quarter last year.  Real estate mortgage fees increased to $1.24 million in the fourth quarter of 2010 compared with $732,000 a year ago.  Service charges on deposit accounts decreased to $4.85 million during the fourth quarter of 2010 compared with $5.66 million for the same quarter a year ago, due primarily to decreased customer use of overdraft services.  ATM and credit card fees increased to $3.02 million from $2.48 million in the fourth quarter last year.  

Noninterest expense increased in the fourth quarter of 2010 to $26.26 million from $23.68 million in the same quarter last year, primarily from a $711,000 increase in profit sharing expense, a $306,000 increase in ATM and credit card expenses and a $283,000 increase in legal, tax and professional expense. The Company's efficiency ratio in the fourth quarter of 2010 was 50.53 percent compared with 50.18 in the same quarter last year.

All amounts for the 2010 fourth quarter include the results of the Company's acquisition of First State Bank, Huntsville, Texas, which was effective November 1, 2010. As of December 31, 2010, Huntsville had total loans of $90.4 million and total deposits of $158.9 million.

For the year, net interest income increased 5.4 percent for the year to $136.17 million from $129.17 million a year ago.  The provision for loan losses totaled $8.96 million for 2010 compared to $11.42 million in the previous year. Noninterest income for 2010 was $49.48 million compared with $48.60 million a year ago.  Noninterest expense was $98.26 million for the year compared with $94.00 million in 2009.

As of December 31, 2010, consolidated assets for the Company totaled $3.78 billion compared with $3.28 billion a year ago.  Loans totaled $1.69 billion at year end compared with loans of $1.51 billion a year ago.  Total deposits were $3.11 billion as of December 31, 2010, compared with $2.68 billion a year earlier.  Shareholders' equity rose to $441.69 million as of December 31, 2010, compared with $415.70 million the prior year.  

"Our company again performed well for the fourth quarter and the full year, despite another challenging year for the economy and the banking industry," said F. Scott Dueser, Chairman, President and CEO. "This was a year of exceptional progress for First Financial, as we grew both through acquisition and organically.  While in the short-term the national economy remains flat, as we begin the new year, we remain optimistic about the long-term outlook for our company and are fully committed to providing excellent results for our customers and shareholders."

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 separately chartered banks with 52 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, Midlothian and Crowley; First Financial Bank, Hereford; First State 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, 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.