FIRST FINANCIAL BANKSHARES, INC. 
By ABILENE, Texas, Jan. 24, 2013 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the fourth quarter of 2012 of $18.32 million, up 4.88 percent compared with earnings of $17.47 million in the same quarter last year. Basic earnings per share were $0.58 for the fourth quarter of 2012 compared with $0.56 in the same quarter a year ago.
Net interest income for the fourth quarter of 2012 increased 1.49 percent to $38.75 million compared with $38.18 million in the same period of 2011. The net interest margin, on a taxable equivalent basis, was 4.17 percent compared with 4.44 percent in the same quarter last year and 4.26 percent in the third quarter of this year.
The provision for loan losses was $642 thousand in the fourth quarter of 2012 compared with $1.22 million in the same quarter last year and $787 thousand in the third quarter of this year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.22 percent at December 31, 2012, compared with 1.53 percent at September 30, 2012, and 1.64 percent at December 31, 2011. Classified loans totaled $67.14 million at December 31, 2012, compared to $76.48 million at September 30, 2012, and $87.31 million at December 31, 2011.
Noninterest income increased 16.85 percent in the fourth quarter of 2012 to $14.95 million compared with $12.79 million in the same quarter a year ago. Trust fees increased to $3.62 million in the fourth quarter of 2012 compared with $3.15 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $2.85 billion from $2.43 billion a year ago. ATM, interchange and credit card fees increased 11.55 percent to $3.96 million compared with $3.55 million in the same quarter last year. The net gain on securities sold during the fourth quarter of 2012 totaled $565 thousand compared to $164 thousand in the same quarter of 2011.
Noninterest expense increased in the fourth quarter of 2012 to $28.63 million from $26.26 million in the same quarter last year. The Company's efficiency ratio was 49.86 percent in the fourth quarter of 2012 compared with 48.33 percent in the same quarter last year. Included in noninterest expense for the fourth quarter of 2012 was $718 thousand related to the Company's consolidation of its charters and databases, which was discussed in a prior release.
For the year, net income increased 8.57 percent to $74.23 million from $68.37 million in 2011, making 2012 the 26(th) consecutive year of earnings increases for the Company. Basic earnings per share rose to $2.36 for the year from $2.17 in the previous year.
Net interest income increased 1.77 percent for the year to $154.68 million from $152.00 million a year ago. The provision for loan losses for 2012 totaled $3.48 million compared with $6.63 million in the previous year. Noninterest income was $57.21 million for the year compared with $51.44 million for the same period a year ago. Noninterest expense rose in 2012 to $109.05 million compared with $104.62 million in 2011.
As of December 31, 2012, consolidated assets for the Company totaled $4.50 billion compared with $4.12 billion a year ago. Loans grew 16.91 percent and totaled $2.09 billion at year end compared with loans of $1.79 billion a year ago. Total deposits were $3.63 billion as of December 31, 2012, which represents an 8.93 percent growth over $3.33 billion a year earlier. Shareholders' equity rose to $556.96 million as of December 31, 2012, compared with $508.54 million in the previous year.
"We are pleased to report to our shareholders another record breaking year, and the 26(th) year of increased earnings especially in light of a stagnant National economy and very low interest rates," said F. Scott Dueser, Chairman, President and CEO. "Our company experienced substantial internal growth in deposits and loans which could not have been achieved without the hard work and dedication of my associates and the support we receive from our shareholders and great customers."
About First Financial Bankshares
Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 banking regions with 55 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Crowley, Decatur, Eastland, Fort Worth, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Merkel, Midlothian, Mineral Wells, Moran, Odessa, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Trent, Trophy Club, Waxahachie, Weatherford and Willow Park. 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: Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
-------- --------- -------- -------- --------
Cash and due from banks $207,018 $128,606 $122,534 $131,163 $146,239
Interest-bearing deposits in
banks 139,676 25,633 25,794 84,169 104,597
Interest-bearing time
deposits in banks 49,005 67,506 74,594 62,018 61,175
Fed funds sold 14,045 23,400 10,100 11,200 -
Investment securities 1,820,096 1,883,864 1,963,367 1,963,341 1,844,998
Loans 2,088,623 2,003,854 1,918,292 1,798,867 1,786,544
Allowance for loan losses (34,839) (34,932) (34,747) (34,529) (34,315)
Net loans 2,053,784 1,968,922 1,883,545 1,764,338 1,752,229
Premises and equipment 84,122 80,580 80,404 79,308 76,483
Goodwill 71,865 71,865 71,865 71,865 71,865
Other intangible assets 108 136 175 213 257
Other assets 62,293 60,035 59,426 59,635 62,688
------ ------ ------ ------ ------
Total assets $4,502,012 $4,310,547 $4,291,804 $4,227,250 $4,120,531
LIABILITIES AND SHAREHOLDERS'
EQUITY:
Noninterest-bearing deposits $1,311,708 $1,200,154 $1,156,238 $1,125,577 $1,101,576
Interest-bearing deposits 2,320,876 2,244,244 2,235,942 2,272,495 2,233,222
--------- --------- --------- --------- ---------
Total deposits 3,632,584 3,444,398 3,392,180 3,398,072 3,334,798
Short-term borrowings 259,697 254,480 251,428 237,567 207,756
Other liabilities 52,768 61,757 113,933 74,606 69,440
Shareholders' equity 556,963 549,912 534,263 517,005 508,537
------- ------- ------- ------- -------
Total liabilities and shareholders'
equity $4,502,012 $4,310,547 $4,291,804 $4,227,250 $4,120,531
Quarter Ended
-------------
2012 2011
---- ----
INCOME STATEMENTS Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
-------- --------- -------- -------- --------
Interest income $39,801 $40,287 $39,911 $39,797 $39,888
Interest expense 1,049 1,168 1,355 1,540 1,704
----- ----- ----- ----- -----
Net interest income 38,752 39,119 38,556 38,257 38,184
Provision for loan losses 642 787 759 1,296 1,221
--- --- --- ----- -----
Net interest income after
provision for loan losses 38,110 38,332 37,797 36,961 36,963
Noninterest income 14,948 15,499 13,464 13,298 12,792
Noninterest expense 28,633 27,203 26,745 26,468 26,257
------ ------ ------ ------ ------
Net income before income taxes 24,425 26,628 24,516 23,791 23,498
Income tax expense 6,107 6,828 6,165 6,035 6,032
----- ----- ----- ----- -----
Net income $18,318 $19,800 $18,351 $17,756 $17,466
PER COMMON SHARE DATA
Net income - basic $0.58 $0.63 $0.58 $0.56 $0.56
Net income - diluted 0.58 0.63 0.58 0.56 0.55
Cash dividends declared 0.25 0.25 0.25 0.24 0.24
Shares outstanding -end of
period 31,496,881 31,488,530 31,481,747 31,477,483 31,459,635
Average outstanding shares -
basic 31,490,402 31,484,375 31,478,980 31,466,706 31,454,197
Average outstanding shares -
diluted 31,530,907 31,502,172 31,497,241 31,479,743 31,489,304
PERFORMANCE RATIOS
Return on average assets 1.68% 1.84% 1.75% 1.73% 1.74%
Return on average equity 13.09 14.53 14.01 13.79 13.88
Net interest margin (tax
equivalent) 4.17 4.26 4.33 4.39 4.44
Efficiency ratio 49.86 46.61 48.02 48.08 48.33
Year Ended
Dec. 31,
--------
INCOME STATEMENTS 2012 2011
---- ----
Interest income $159,796 $160,021
Interest expense 5,112 8,024
----- -----
Net interest income 154,684 151,997
Provision for loan losses 3,484 6,626
----- -----
Net interest income after
provision for loan losses 151,200 145,371
Noninterest income 57,209 51,438
Noninterest expense 109,049 104,624
------- -------
Net income before income taxes 99,360 92,185
Income tax expense 25,135 23,816
------ ------
Net income $74,225 $68,369
PER COMMON SHARE DATA
Net income - basic $2.36 $2.17
Net income - diluted 2.36 2.17
Cash dividends declared 0.99 0.95
Book value 17.68 16.16
Market value 39.01 33.43
Shares outstanding -end of
period 31,496,881 31,459,635
Average outstanding shares -
basic 31,480,155 31,443,712
Average outstanding shares -
diluted 31,501,267 31,461,964
PERFORMANCE RATIOS
Return on average assets 1.75% 1.78%
Return on average equity 13.85 14.44
Net interest margin (tax
equivalent) 4.28 4.62
Efficiency ratio 48.14 48.37
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
-------------
2012 2011
---- ----
ALLOWANCE FOR LOAN LOSSES Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
-------- --------- -------- -------- --------
Balance at beginning of period $34,932 $34,747 $34,529 $34,315 $34,301
Loans charged off (1,119) (1,064) (766) (1,405) (2,195)
Loan recoveries 384 462 225 323 988
--- --- --- --- ---
Net charge-offs (735) (602) (541) (1,082) (1,207)
Provision for loan losses 642 787 759 1,296 1,221
--- --- --- ----- -----
Balance at end of period $34,839 $34,932 $34,747 $34,529 $34,315
======= ======= ======= ======= =======
Allowance for loan losses /period-
end loans 1.67% 1.74% 1.81% 1.92% 1.92%
Allowance for loan losses /
nonperforming loans 159.1 143.4 130.1 164.3 171.0
Net charge-offs /average loans
(annualized) 0.14 0.12 0.12 0.24 0.27
NONPERFORMING ASSETS
Nonaccrual loans $21,800 $24,283 $26,606 $20,963 $19,975
Accruing loans 90 days past due 97 69 105 53 96
--- --- --- --- ---
Total nonperforming loans 21,897 24,352 26,711 21,016 20,071
Foreclosed assets 3,565 6,373 7,149 7,852 9,464
----- ----- ----- ----- -----
Total nonperforming assets $25,462 $30,725 $33,860 $28,868 $29,535
As a % of loans and foreclosed assets 1.22% 1.53% 1.76% 1.60% 1.64%
As a % of end of period total assets 0.57 0.71 0.79 0.68 0.72
CAPITAL RATIOS
Tier 1 risk-based 17.43% 17.66% 17.23% 17.73% 17.49%
Total risk-based 18.68 18.92 18.48 18.99 18.74
Tier 1 leverage 10.60 10.49 10.36 10.31 10.33
Equity to assets 12.37 12.76 12.45 12.23 12.34
Quarter Ended
-------------
2012 2011
---- ----
NONINTEREST INCOME Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
-------- --------- -------- -------- --------
Trust fees $3,616 $3,723 $3,670 $3,454 $3,151
Service charges on deposits 4,432 4,337 4,042 3,882 4,313
ATM, interchange and credit card fees 3,961 3,767 3,784 3,676 3,551
Real estate mortgage fees 1,331 1,495 1,218 1,050 1,013
Net gain on sale of available-for-
sale securities 565 1,479 382 346 164
Net gain (loss) on sale of foreclosed
assets 162 (106) (404) 6 (159)
Net gain (loss) on sale of assets 5 (32) 105 122 43
Other noninterest income 876 836 667 762 716
Total noninterest income $14,948 $15,499 $13,464 $13,298 $12,792
NONINTEREST EXPENSE
Salaries and employee benefits,
excluding profit sharing $13,565 $13,502 $13,304 $13,186 $12,753
Profit sharing expense 1,441 1,343 885 1,043 1,153
Net occupancy expense 1,790 1,806 1,743 1,737 1,707
Equipment expense 2,269 2,269 2,144 2,108 2,008
FDIC insurance premiums 565 563 565 527 517
ATM, interchange and credit card
expenses 1,432 1,317 1,450 1,249 1,311
Legal, tax and professional fees 1,162 1,019 968 1,033 994
Audit fees 323 311 283 295 304
Printing, stationery and supplies 487 468 511 505 473
Amortization of intangible assets 28 38 38 44 84
Advertising and public relations 1,085 998 953 942 1,105
Correspondent bank service charges 220 220 216 200 198
Other noninterest expense 4,266 3,349 3,685 3,599 3,650
----- ----- ----- ----- -----
Total noninterest expense $28,633 $27,203 $26,745 $26,468 $26,257
TAX EQUIVALENT YIELD ADJUSTMENT $3,727 $3,743 $3,673 $3,495 $3,348
====== ====== ====== ====== ======
Year Ended
Dec. 31,
--------
NONINTEREST INCOME 2012 2011
---- ----
Trust fees $14,464 $12,671
Service charges on deposits 16,693 17,689
ATM, interchange and credit card fees 15,187 13,587
Real estate mortgage fees 5,094 3,943
Net gain on sale of available-for-
sale securities 2,772 492
Net gain (loss) on sale of foreclosed
assets (350) (1,315)
Net gain (loss) on sale of assets 207 897
Other noninterest income 3,142 3,474
Total noninterest income $57,209 $51,438
NONINTEREST EXPENSE
Salaries and employee benefits,
excluding profit sharing $53,558 $51,568
Profit sharing expense 4,711 4,688
Net occupancy expense 7,076 6,862
Equipment expense 8,790 7,800
FDIC insurance premiums 2,220 2,646
ATM, interchange and credit card
expenses 5,448 4,918
Legal, tax and professional fees 4,182 4,212
Audit fees 1,211 1,158
Printing, stationery and supplies 1,970 1,831
Amortization of intangible assets 149 402
Advertising and public relations 3,977 3,817
Correspondent bank service charges 856 804
Other noninterest expense 14,901 13,918
------ ------
Total noninterest expense $109,049 $104,624
TAX EQUIVALENT YIELD ADJUSTMENT $14,637 $12,851
======= =======
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended
Dec. 31, 2012
-------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest-earning assets:
Fed funds sold $15,519 $ - - %
Interest-bearing deposits in nonaffiliated banks 133,782 130 0.39%
Taxable securities 1,056,945 6,821 2.58%
Tax exempt securities 807,844 9,900 4.90%
Loans 2,035,158 26,677 5.21%
--------- ------ ----
Total interest-earning assets 4,049,248 43,528 4.28%
Noninterest-earning assets 296,905
-------
Total assets $4,346,153
Interest-bearing liabilities:
Deposits $2,267,207 $990 0.17%
Fed funds purchased and other short term borrowings 267,669 59 0.09%
------- --- ----
Total interest-bearing liabilities 2,534,876 1,049 0.16%
Noninterest-bearing liabilities 1,254,694
Shareholders' equity 556,583
-------
Total liabilities and shareholders' equity $4,346,153
Net interest income and margin (tax equivalent) $42,479 4.17%
======= ====
Year Ended
Dec. 31, 2012
-------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest-earning assets:
Fed funds sold $11,589 $6 0.05%
Interest-bearing deposits in nonaffiliated banks 122,999 748 0.61%
Taxable securities 1,144,763 31,318 2.74%
Tax exempt securities 762,754 39,049 5.12%
Loans 1,909,890 103,312 5.41%
--------- ------- ----
Total interest-earning assets 3,951,995 174,433 4.41%
Noninterest-earning assets 285,922
-------
Total assets $4,237,917
Interest-bearing liabilities:
Deposits $2,255,239 $4,877 0.22%
Fed funds purchased and other short term borrowings 258,863 235 0.09%
------- --- ----
Total interest-bearing liabilities 2,514,102 5,112 0.20%
Noninterest-bearing liabilities 1,187,883
Shareholders' equity 535,932
-------
Total liabilities and shareholders' equity $4,237,917
Net interest income and margin (tax equivalent) $169,321 4.28%
======== ====
SOURCE First Financial Bankshares, Inc.
