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ABILENE, Texas, Oct. 22 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) today reported earnings for the third quarter of 2009 of $13.99 million, up 4.7 percent compared with earnings of $13.36 million in the same quarter last year. Basic earnings per share were $0.67 for the third quarter of 2009, up 4.7 percent from $0.64 a year ago.
Net interest income for the third quarter of 2009 increased 3.8 percent to $32.58 million compared with $31.40 million in the same quarter last year. The net interest margin, on a taxable equivalent basis, rose to 4.92 percent for the third quarter of 2009 compared with 4.73 percent in the same period a year ago and 4.88 percent for the quarter ended June 30, 2009. The provision for loan losses was $3.71 million in the third quarter of 2009, up from $1.77 million in the same quarter last year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.30 percent at September 30, 2009, compared with 95 basis points at June 30, 2009, and 69 basis points at September 30, 2008.
Noninterest income in the third quarter of 2009 was $12.88 million compared with $12.29 million in the same quarter a year earlier. Noninterest income for the third quarter of 2009 included $897,000 from gains on securities transactions compared with $146,000 in gains during the same quarter a year ago. Noninterest income for the third quarter of 2009 also included $273,000 in pre-tax gain on the sale of student loans, which resulted from the Company's sale of substantially all of the remainder of its student loan portfolio to the U.S. Department of Education.
Noninterest expense declined 1.6 percent in the third quarter of 2009 to $23.02 million from $23.38 million in the same quarter last year, although the Company's FDIC insurance cost increased $656,000. The Company's efficiency ratio in the third quarter of 2009 improved to 47.92 percent compared with 51.42 percent in the same quarter a year ago.
"We are pleased to report another quarter of earnings growth and improved net interest margin, especially in light of the national recession and low interest rate environment," said F. Scott Dueser, President and Chief Executive Officer. "Our bank presidents continue to do an exceptional job of managing our net interest margin and their banks. Nonperforming assets increased from previous quarters as the national recession becomes more prevalent in Texas; however, our percentage is favorable compared to our peers."
For the first nine months of 2009, net income increased 2.8 percent to $41.26 million from $40.13 million a year ago. Basic earnings per share rose to $1.98 for the first nine months of 2009 from $1.93 in the same period last year. Net interest income increased 5.9 percent in the first nine months of 2009 to $96.63 million from $91.25 million a year ago. The provision for loan losses increased $2.8 million to $7.05 million as the Company continued to aggressively address problem loans and the slowing economy. Noninterest income was $36.54 million for the first nine months of 2009 compared with $38.06 million in the same period a year earlier. Noninterest expense was $70.33 million in the first nine months of 2009 compared with $69.06 million for the comparable period a year ago.
As of September 30, 2009, consolidated assets for the Company totaled $3.08 billion compared with $3.15 billion a year ago. Loans totaled $1.45 billion at quarter end, compared with loans of $1.57 billion a year ago. Total deposits were $2.46 billion as of September 30, 2009, compared with $2.56 billion a year earlier. Shareholders' equity rose to $415.53 million as of September 30, 2009, compared with $350.42 million the prior year.
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)
September 30,
-------------
2009 2008
---- ----
ASSETS:
Cash and due from banks $113,210 $116,989
Fed funds sold 38,045 55,675
Investment securities 1,323,451 1,253,945
Loans 1,454,397 1,567,727
Allowance for loan losses (25,532) (20,048)
------- -------
Net loans 1,428,865 1,547,679
Premises and equipment 63,659 65,531
Goodwill 62,112 62,112
Other intangible assets 1,239 2,178
Other assets 45,612 44,479
------ ------
Total assets $3,076,193 $3,148,588
========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY:
Noninterest-bearing deposits $719,266 $769,115
Interest-bearing deposits 1,739,637 1,794,437
--------- ---------
Total deposits 2,458,903 2,563,552
Short-term borrowings 160,401 196,839
Other liabilities 41,355 37,780
Shareholders' equity 415,534 350,417
------- -------
Total liabilities and
shareholders' equity $3,076,193 $3,148,588
========== ==========
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
INCOME STATEMENTS 2009 2008 2009 2008
---- ---- ---- ----
Interest income $36,598 $39,218 $110,028 $119,915
Interest expense 4,015 7,819 13,401 28,666
----- ----- ------ ------
Net interest
income 32,583 31,399 96,627 91,249
Provision for
loan losses 3,706 1,765 7,054 4,274
----- ----- ----- -----
Net interest
income after
provision for
loan losses 28,877 29,634 89,573 86,975
Noninterest
income 12,879 12,291 36,536 38,058
Noninterest
expense 23,018 23,385 70,325 69,055
------ ------ ------ ------
Net income
before income
taxes 18,738 18,540 55,784 55,978
Income tax
expense 4,752 5,179 14,528 15,853
----- ----- ------ ------
Net income $13,986 $13,361 $41,256 $40,125
======= ======= ======= =======
PER COMMON SHARE DATA
Net income -
basic $0.67 $0.64 $1.98 $1.93
Net income -
diluted 0.67 0.64 1.98 1.93
Cash dividends 0.34 0.34 1.02 1.00
Book value 19.96 16.85
Market value 49.46 51.88
Shares
outstanding -
end of period 20,822,396 20,793,647 20,822,396 20,793,647
Average
outstanding
shares - basic 20,819,398 20,793,197 20,810,112 20,784,711
Average
outstanding
shares - diluted 20,844,567 20,853,539 20,830,932 20,831,128
PERFORMANCE RATIOS
Return on
average assets 1.81% 1.74% 1.78% 1.77%
Return on
average equity 13.99 15.31 14.18 15.42
Net interest
margin (tax
equivalent) 4.92 4.73 4.85 4.64
Efficiency ratio 47.92 51.42 50.08 51.41
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
-------------
2009 2008
---- ----
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
--------- -------- --------- -------- ---------
ALLOWANCE FOR LOAN
LOSSES
Balance at beginning of
period $23,247 $22,652 $21,529 $20,048 $18,677
Loans charged off (1,662) (1,225) (893) (2,406) (647)
Loan recoveries 241 232 255 204 253
--- --- --- --- ---
Net charge-offs (1,421) (993) (638) (2,202) (394)
Provision for loan
losses 3,706 1,588 1,761 3,683 1,765
----- ----- ----- ----- -----
Balance at end of
period $25,532 $23,247 $22,652 $21,529 $20,048
======= ======= ======= ======= =======
Allowance for loan
losses / period-end
loans 1.76% 1.57% 1.53% 1.37% 1.28%
Allowance for loan
losses / nonperforming
loans 174.4 225.4 233.5 216.8 245.7
Net charge-offs /
average loans
(annualized) 0.38 0.27 0.17 0.56 0.10
NONPERFORMING ASSETS
Nonaccrual loans $14,585 $10,242 $9,606 $9,893 $7,947
Accruing loans 90 days
past due 56 72 94 36 213
--- --- --- --- ---
Total nonperforming
loans 14,641 10,314 9,700 9,929 8,160
Foreclosed assets 4,367 3,755 4,415 2,602 2,613
----- ----- ----- ----- -----
Total nonperforming
assets $19,008 $14,069 $14,115 $12,531 $10,773
======= ======= ======= ======= =======
As a % of loans and
foreclosed assets 1.30% 0.95% 0.95% 0.80% 0.69%
As a % of end of period
total assets 0.62 0.46 0.45 0.39 0.34
CAPITAL RATIOS
Tier 1 Risk-based 18.12% 17.36% 16.80% 15.89% 15.41%
Total Risk-based 19.37 18.61 18.05 17.04 16.49
Tier 1 Leverage 10.83 10.53 10.01 9.68 9.63
Equity to assets 13.51 12.64 12.22 11.48 11.13
Three Months Ended Nine Months Ended
September 30, September 30,
NONINTEREST INCOME 2009 2008 2009 2008
---- ---- ---- ----
Gain on sale of student loans,
net $273 $3 $889 $1,717
Gain on securities transactions,
net 897 146 1,645 705
Trust fees 2,328 2,501 6,570 7,230
Service charges on deposits 5,732 5,809 16,294 17,005
Real estate mortgage fees 731 649 2,177 2,018
Net gain (loss) on sale of
foreclosed assets (128) 27 (187) 116
ATM and credit card fees 2,427 2,327 7,063 6,623
Other noninterest income 619 829 2,085 2,644
--- --- ----- -----
Total Noninterest Income $12,879 $12,291 $36,536 $38,058
======= ======= ======= =======
NONINTEREST EXPENSE
Salaries and employee benefits,
excluding profit sharing $11,512 $11,529 $34,695 $34,588
Profit sharing expense 689 923 1,739 2,957
Net occupancy expense 1,599 1,826 4,785 5,069
Equipment expense 1,920 1,891 5,828 5,603
Printing, stationery and
supplies 508 482 1,406 1,433
ATM and credit card expenses 810 1,155 2,462 3,271
Audit fees 292 288 840 884
Legal, tax and professional
fees 778 734 2,470 2,209
FDIC Insurance premiums 818 162 4,074 438
Correspondent bank service
charges 204 303 839 868
Advertising and public relations 661 638 1,783 1,935
Amortization of intangible
assets 214 302 652 917
Other noninterest expense 3,013 3,152 8,752 8,883
----- ----- ----- -----
Total Noninterest Expense $23,018 $23,385 $70,325 $69,055
======= ======= ======= =======
TAX EQUIVALENT YIELD ADJUSTMENT $2,570 $1,786 $7,256 $5,028
====== ====== ====== ======
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended
September 30, 2009
------------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest-earning assets:
Fed funds sold $46,649 $23 0.20%
Interest-bearing deposits in
nonaffiliated banks 18,189 73 1.59%
Taxable securities 855,409 9,155 4.28%
Tax exempt securities 450,508 7,060 6.27%
Loans 1,465,423 22,857 6.19%
--------- ------ ----
Total interest-earning assets 2,836,178 39,168 5.48%
Noninterest-earning assets 235,596
-------
Total assets $3,071,774
==========
Interest-bearing liabilities:
Deposits $1,730,708 $3,836 0.88%
Fed funds purchased and other
short term borrowings 171,621 179 0.41%
------- --- ----
Total interest-bearing liabilities 1,902,329 4,015 0.84%
-----
Noninterest-bearing liabilities 772,768
Shareholders' equity 396,677
-------
Total liabilities and shareholders'
equity $3,071,774
==========
Net interest income and
margin (tax equivalent) $35,153 4.92%
======= ====
Nine Months Ended
September 30, 2009
------------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest-earning assets:
Fed funds sold $37,578 $66 0.24%
Interest-bearing deposits in
nonaffiliated banks 11,531 143 1.65%
Taxable securities 881,726 28,102 4.25%
Tax exempt securities 426,621 19,958 6.24%
Loans 1,504,400 69,015 6.13%
--------- ------ ----
Total interest-earning assets 2,861,856 117,284 5.48%
Noninterest-earning assets 244,961
-------
Total assets $3,106,817
==========
Interest-bearing liabilities:
Deposits $1,744,336 $12,768 0.98%
Fed funds purchased and other
short term borrowings 191,376 633 0.44%
------- --- ----
Total interest-bearing liabilities 1,935,712 13,401 0.93%
------
Noninterest-bearing liabilities 782,184
Shareholders' equity 388,921
-------
Total liabilities and shareholders'
equity $3,106,817
==========
Net interest income and
margin (tax equivalent) $103,883 4.85%
======== ====
SOURCE First Financial Bankshares, Inc.
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