First Financial Bankshares Announces First Quarter Earnings Results

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April 16, 2015 4:01 PM EDT

ABILENE, Texas, April 16, 2015 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the first quarter of 2015 of $24.00 million, up 7.44 percent when compared with earnings of $22.34 million in the same quarter last year.  Basic earnings per share were $0.37 for the first quarter of 2015 compared with $0.35 in the same quarter a year ago.

Net interest income for the first quarter of 2015 increased 8.32 percent to $51.10 million compared with $47.17 million in the same period of 2014. The net interest margin, on a taxable equivalent basis, was 4.11 percent compared to 4.08 percent in the fourth quarter of 2014 and 4.32 percent in the first quarter of 2014. Included in interest income for the first quarter of 2015 was $489 thousand, or three basis points in net interest margin, related to discount accretion from fair value accounting related to the Orange and Huntsville acquisitions.   

The provision for loan losses was $1.29 million in the first quarter of 2015 compared with $755 thousand in the fourth quarter of 2014 and $1.69 million in the first quarter of 2014. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.69 percent at March 31, 2015, compared with 0.74 percent at December 31, 2014, and 1.02 percent at March 31, 2014.  Classified loans totaled $77.75 million at March 31, 2015, compared to $72.98 million at December 31, 2014, and $81.56 million at March 31, 2014.

Noninterest income decreased 3.10 percent in the first quarter of 2015 to $15.90 million compared with $16.41 million in the same quarter a year ago. Included in noninterest income in the first quarter of 2014 was a $605 thousand gain from the settlement of a bank owned life insurance contract and a gain on sale of foreclosed assets of $452 thousand compared to only $30 thousand in the first quarter of 2015. Trust fees increased to $4.73 million in the first quarter of 2015 compared with $4.58 million in the same quarter last year, due to continued growth in the fair value of Trust assets managed to $3.85 billion from $3.47 billion a year ago. This growth offset a $241 thousand decline in Trust oil and gas fee income in the first quarter of 2015 compared to the same quarter a year ago.  ATM, interchange and credit card fees increased 11.84 percent to $4.97 million compared with $4.44 million in the same quarter last year due to continued growth in net new accounts and debit cards. Real estate mortgage fees increased 39.36 percent in the first quarter of 2015 to $1.43 million compared with $1.02 million in the same quarter a year ago.

Noninterest expense for the first quarter of 2015 totaled $33.94 million compared to $32.45 million in the first quarter of 2014. The Company's efficiency ratio in the first quarter of 2015 was 47.01 percent compared with 47.57 percent in the same quarter last year. The increase in noninterest expense in the first quarter of 2015 was primarily a result of an increase in salary and employee benefit costs to $18.27 million compared to $17.41 million in the same period a year ago, primarily driven by the addition of employees to staff new branches, compliance-related areas and annual pay increases.

As of March 31, 2015, consolidated assets for the Company totaled $6.03 billion compared with $5.28 billion a year ago. Loans totaled $2.94 billion at quarter end compared with loans of $2.70 billion a year ago. Total deposits grew 14.23 percent to $4.84 billion at March 31, 2015, compared to $4.23 billion a year ago.  Shareholders' equity rose to $706.25 million as of March 31, 2015, compared with $616.57 million in the prior year. 

"We are pleased to report another successful quarter for our company and continue to work to grow and improve our efficiencies," said F. Scott Dueser, Chairman, President and CEO. "We are very excited about the additions of our newest proposed acquisition, First Bank, N.A., Conroe, Texas, and the asset purchase agreement of 4Trust Mortgage, Inc. We believe these additions to the First Financial family fit well into our footprint and continues our strategy to buy well-run banks and companies in high growth areas, which bring good earnings opportunities. In light of the current depressed oil and gas prices, we continue to monitor our direct exposure to the oil and gas industry, which has remained at approximately 3%, consistent with the 2014 year-end balances."

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 12 banking regions with 62 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Decatur, Eastland, Fort Worth, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Mauriceville, Merkel, Midlothian, Mineral Wells, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Trent, Trophy Club, Vidor, Waxahachie, Weatherford and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with eight 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)

As of

2015

2014

ASSETS

Mar. 31, 

 Dec. 31,  

 Sept. 30,  

 June 30,  

Mar. 31, 

Cash and due from banks

$

142,233

$

190,387

$

149,957

$

166,237

$

160,469

Interest-bearing deposits in banks

18,275

54,324

83,994

68,331

3,772

Interest-bearing time deposits in banks

9,170

17,002

19,234

24,188

30,026

Fed funds sold

5,460

8,760

4,785

3,110

3,620

Investment securities

2,689,640

2,416,297

2,254,316

2,174,396

2,163,599

Loans

2,938,707

2,937,991

2,839,696

2,786,644

2,698,717

Allowance for loan losses

(37,828)

(36,824)

(36,388)

(35,892)

(34,693)

Net loans

2,900,879

2,901,167

2,803,308

2,750,752

2,664,024

Premises and equipment

104,358

103,000

101,437

96,619

95,406

Goodwill

94,882

94,882

94,882

94,882

94,882

Other intangible assets

2,310

2,477

2,547

2,547

2,600

Other assets

58,165

59,906

61,351

65,294

62,629

Total assets

$

6,025,372

$

5,848,202

$

5,575,811

$

5,446,356

$

5,281,027

LIABILITIES AND SHAREHOLDERS'  EQUITY

Noninterest-bearing deposits

$

1,600,807

$

1,570,330

$

1,505,847

$

1,445,947

$

1,389,331

Interest-bearing deposits

3,236,200

3,179,925

2,958,517

2,872,511

2,844,950

Total deposits

4,837,007

4,750,255

4,464,364

4,318,458

4,234,281

Short-term borrowings

401,898

367,110

341,909

434,583

383,220

Other liabilities

80,219

49,300

110,773

53,279

46,960

Shareholders' equity

706,248

681,537

658,765

640,036

616,566

Total liabilities and shareholders' equity

$

6,025,372

$

5,848,202

$

5,575,811

$

5,446,356

$

5,281,027

Quarter Ended

2015

2014

INCOME STATEMENTS

Mar. 31, 

 Dec. 31,  

 Sept. 30,  

 June 30,  

Mar. 31, 

Interest income

$

52,069

$

51,121

$

49,955

$

49,254

$

48,209

Interest expense

970

1,039

1,069

1,037

1,036

Net interest income

51,099

50,082

48,886

48,217

47,173

Provision for loan losses

1,290

755

896

1,124

1,690

Net interest income after provision for loan losses

49,809

49,327

47,990

47,093

45,483

Noninterest income

15,897

17,023

17,324

15,872

16,405

Noninterest expense

33,943

36,435

34,040

35,002

32,448

Net income before income taxes

31,763

29,915

31,274

27,963

29,440

Income tax expense

7,766

7,328

7,843

6,758

7,104

Net income

$

23,997

$

22,587

$

23,431

$

21,205

$

22,336

PER COMMON SHARE DATA 

Net income - basic

$

0.37

$

0.35

$

0.37

$

0.33

$

0.35

Net income - diluted

0.37

0.35

0.36

0.33

0.35

Cash dividends declared

0.14

0.14

0.14

0.14

0.13

Book Value

11.01

10.63

10.28

9.99

9.63

Market Value

$

27.64

$

29.88

$

27.79

$

31.37

$

30.90

Shares outstanding - end of period

64,142,812

64,089,921

64,065,828

64,053,010

64,039,234

Average outstanding shares - basic

64,122,965

64,075,334

64,059,675

64,045,282

64,010,076

Average outstanding shares - diluted

64,298,896

64,316,815

64,304,985

64,301,306

64,212,018

PERFORMANCE RATIOS

Return on average assets

1.64

%

1.57

%

1.71

%

1.59

%

1.74

%

Return on average equity

14.00

13.34

14.27

13.46

15.02

Net interest margin (tax equivalent)

4.11

4.08

4.18

4.24

4.32

Efficiency ratio

47.01

50.58

47.93

50.84

47.57

 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Quarter Ended

2015

2014

ALLOWANCE FOR LOAN LOSSES

Mar. 31, 

Dec. 31, 

Sept. 30, 

June 30, 

Mar. 31, 

Balance at beginning of period

$

36,824

$

36,388

$

35,892

$

34,693

$

33,900

Loans charged off

(509)

(670)

(614)

(302)

(1,297)

Loan recoveries

223

351

214

377

400

Net recoveries (charge-offs)

(286)

(319)

(400)

75

(897)

Provision for loan losses

1,290

755

896

1,124

1,690

Balance at end of period

$

37,828

$

36,824

$

36,388

$

35,892

$

34,693

Allowance for loan losses /

     period-end loans

1.29

%

1.25

%

1.28

%

1.29

%

1.29

%

Allowance for loan losses /

     nonperforming loans

196.04

178.06

162.77

151.52

140.23

Net charge-offs / average loans

     (annualized)

0.04

0.04

0.06

(0.01)

0.14

NONPERFORMING ASSETS

Nonaccrual loans

$

18,935

$

20,195

$

22,093

$

23,565

$

24,710

Accruing troubled debt restructured loans

177

226

-

-

-

Accruing loans 90 days past due

184

260

263

123

30

Total nonperforming loans

19,296

20,681

22,356

23,688

24,740

Foreclosed assets

1,081

1,035

1,273

2,342

2,813

Total nonperforming assets

$

20,377

$

21,716

$

23,629

$

26,030

$

27,553

As a % of loans and foreclosed assets

0.69

%

0.74

%

0.83

%

0.93

%

1.02

%

As a % of end of period total assets

0.34

0.37

0.42

0.48

0.52

CAPITAL RATIOS

Tier 1 risk-based

16.23

%

16.05

%

16.07

%

16.15

%

16.24

%

Total risk-based

17.35

17.16

17.20

17.30

17.39

Tier 1 leverage

9.85

9.89

10.10

9.99

9.95

Equity to assets

11.72

11.65

11.81

11.75

11.68

Quarter Ended

2015

2014

NONINTEREST INCOME

Mar. 31, 

Dec. 31, 

 Sept. 30,  

 June 30,  

Mar. 31, 

Trust fees

$

4,731

$

4,869

$

4,772

$

4,549

$

4,576

Service charges on deposits

3,768

4,287

4,402

4,174

4,047

ATM, interchange and credit card fees

4,969

5,137

5,093

4,754

4,443

Real estate mortgage fees

1,427

1,465

1,813

1,337

1,024

Net gain (loss) on sale of available-for-sale securities

5

-

1

(1)

(4)

Net gain (loss) on sale of foreclosed assets

30

100

305

47

452

Net gain (loss) on sale of assets

5

(6)

(31)

44

3

Other noninterest income

962

1,171

969

968

1,864

Total noninterest income

$

15,897

$

17,023

$

17,324

$

15,872

$

16,405

NONINTEREST EXPENSE

Salaries and employee benefits, excluding profit sharing

$

17,023

$

16,302

$

16,354

$

16,279

$

16,197

Profit sharing expense

1,242

1,516

1,596

995

1,217

Loss from partial settlement of pension plan

-

2,909

-

-

-

Net occupancy expense

2,197

2,296

2,297

2,273

2,234

Equipment expense

2,899

2,695

2,758

2,665

2,622

FDIC insurance premiums

748

689

693

684

659

ATM, interchange and credit card expenses

1,725

1,875

1,819

1,696

1,480

Legal, tax and professional fees

1,697

1,363

1,463

1,208

1,273

Audit  fees

381

279

403

367

369

Printing, stationery and supplies

596

676

632

554

775

Amortization of intangible assets

90

64

62

74

75

Advertising and public relations

1,353

1,515

1,591

1,465

1,375

Correspondent bank service charges

222

222

222

215

228

Other noninterest expense

3,770

4,034

4,150

6,527

3,944

Total noninterest expense

$

33,943

$

36,435

$

34,040

$

35,002

$

32,448

TAX EQUIVALENT YIELD ADJUSTMENT

$

5,213

$

4,934

$

4,814

$

4,753

$

4,629

 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Three Months Ended

Three Months Ended

Mar. 31, 2015

Dec. 31, 2014

Average

Tax Equivalent

Yield /

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Balance

Interest

Rate

Interest-earning assets:

  Fed funds sold

$

6,767

$

5

0.27

%

$

5,975

$

4

0.30

%

  Interest-bearing deposits in nonaffiliated banks

89,798

75

0.34

118,244

110

0.37

  Taxable securities

1,333,073

7,808

2.34

1,246,632

7,370

2.36

  Tax exempt securities

1,191,772

13,973

4.69

1,091,723

13,078

4.79

  Loans

2,931,805

35,420

4.90

2,889,951

35,492

4.87

Total interest-earning assets

5,553,215

$

57,281

4.18

%

5,352,525

$

56,054

4.15

%

Noninterest-earning assets

363,211

358,395

Total assets

$

5,916,426

$

5,710,920

Interest-bearing liabilities:

  Deposits

$

3,221,552

$

927

0.12

%

$

3,043,612

$

989

0.13

%

  Fed funds purchased and other short term borrowings

388,213

42

0.04

373,785

49

0.05

Total interest-bearing liabilities

3,609,765

$

969

0.11

%

3,417,397

$

1,038

0.12

%

Noninterest-bearing liabilities                                                                              

1,611,430

1,621,819

Shareholders' equity

695,231

671,704

Total liabilities and shareholders' equity

$

5,916,426

$

5,710,920

Net interest income and margin (tax equivalent)

$

56,312

4.11

%

$

55,016

4.08

%

Three Months Ended

Three Months Ended

Sept. 30, 2014

June 30, 2014

Average

Tax Equivalent

Yield /

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Balance

Interest

Rate

Interest-earning assets:

  Fed funds sold

$

10,619

$

11

0.40

%

$

11,310

$

12

0.41

%

  Interest-bearing deposits in nonaffiliated banks

50,213

69

0.55

48,974

78

0.64

  Taxable securities

1,166,248

6,856

2.35

1,159,430

7,091

2.45

  Tax exempt securities

1,057,715

12,763

4.83

1,037,608

12,599

4.86

  Loans

2,814,083

35,070

4.94

2,748,023

34,227

5.00

Total interest-earning assets

5,098,878

$

54,769

4.26

%

5,005,345

$

54,007

4.33

%

Noninterest-earning assets

348,369

335,651

Total assets

$

5,447,247

$

5,340,996

Interest-bearing liabilities:

  Deposits

$

2,892,065

$

999

0.14

%

$

2,867,740

$

955

0.13

%

  Fed funds purchased and other short term borrowings

384,768

70

0.07

406,913

82

0.08

Total interest-bearing liabilities

3,276,833

$

1,069

0.13

%

3,274,653

$

1,037

0.13

%

Noninterest-bearing liabilities                                                                              

1,518,907

1,434,674

Shareholders' equity

651,507

631,669

Total liabilities and shareholders' equity

$

5,447,247

$

5,340,996

Net interest income and margin (tax equivalent)

$

53,700

4.18

%

$

52,970

4.24

%

Three Months Ended

Mar. 31, 2014

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Interest-earning assets:

  Fed funds sold

$

5,718

$

5

0.35

%

  Interest-bearing deposits in nonaffiliated banks

48,708

82

0.68

  Taxable securities

1,121,296

7,084

2.53

  Tax exempt securities

992,947

12,218

4.92

  Loans

2,689,474

33,450

5.04

Total interest-earning assets

4,858,143

$

52,839

4.41

%

Noninterest-earning assets

351,309

Total assets

$

5,209,452

Interest-bearing liabilities:

  Deposits

$

2,817,181

$

941

0.14

%

  Fed funds purchased and other short term borrowings

426,204

96

0.09

Total interest-bearing liabilities

3,243,385

$

1,037

0.13

%

Noninterest-bearing liabilities                                                                              

1,362,852

Shareholders' equity

603,215

Total liabilities and shareholders' equity

$

5,209,452

Net interest income and margin (tax equivalent)

$

51,802

4.32

%

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/first-financial-bankshares-announces-first-quarter-earnings-results-300067273.html

SOURCE First Financial Bankshares, Inc.


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