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Press release from PR Newswire

First Financial Bankshares Announces Fourth Quarter Earnings Results And 26th Year Of Consecutive Earnings Growth

Thursday, January 24, 2013

First Financial Bankshares Announces Fourth Quarter Earnings Results And 26th Year Of Consecutive Earnings Growth16:06 EST Thursday, January 24, 2013ABILENE, 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 26th 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 26th 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 BanksharesHeadquartered 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 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 Ended20122011ASSETS:Dec. 31, Sept. 30, June 30,Mar. 31, Dec. 31,Cash and due from banks$207,018$128,606$122,534$131,163$146,239Interest-bearing deposits in banks139,67625,63325,79484,169104,597Interest-bearing time deposits in banks49,00567,50674,59462,01861,175Fed funds sold14,04523,40010,10011,200-Investment securities1,820,0961,883,8641,963,3671,963,3411,844,998Loans2,088,6232,003,8541,918,2921,798,8671,786,544Allowance for loan losses(34,839)(34,932)(34,747)(34,529)(34,315)Net loans2,053,7841,968,9221,883,5451,764,3381,752,229Premises and equipment84,12280,58080,40479,30876,483Goodwill71,86571,86571,86571,86571,865Other intangible assets108136175213257Other assets62,29360,03559,42659,63562,688Total assets$4,502,012$4,310,547$4,291,804$4,227,250$4,120,531LIABILITIES AND SHAREHOLDERS'  EQUITY:Noninterest-bearing deposits$1,311,708$1,200,154$1,156,238$1,125,577$1,101,576Interest-bearing deposits2,320,8762,244,2442,235,9422,272,4952,233,222Total deposits3,632,5843,444,3983,392,1803,398,0723,334,798Short-term borrowings259,697254,480251,428237,567207,756Other liabilities52,76861,757113,93374,60669,440Shareholders' equity556,963549,912534,263517,005508,537Total liabilities and shareholders' equity$4,502,012$4,310,547$4,291,804$4,227,250$4,120,531Quarter Ended20122011INCOME STATEMENTSDec. 31, Sept. 30, June 30,Mar. 31, Dec. 31,Interest income$39,801$40,287$39,911$39,797$39,888Interest expense1,0491,1681,3551,5401,704Net interest income38,75239,11938,55638,25738,184Provision for loan losses6427877591,2961,221Net interest income after provision for loan losses38,11038,33237,79736,96136,963Noninterest income14,94815,49913,46413,29812,792Noninterest expense28,63327,20326,74526,46826,257Net income before income taxes24,42526,62824,51623,79123,498Income tax expense6,1076,8286,1656,0356,032Net income$18,318$19,800$18,351$17,756$17,466PER COMMON SHARE DATA Net income - basic$0.58$0.63$0.58$0.56$0.56Net income - diluted0.580.630.580.560.55Cash dividends declared0. outstanding - end of period31,496,88131,488,53031,481,74731,477,48331,459,635Average outstanding shares - basic31,490,40231,484,37531,478,98031,466,70631,454,197Average outstanding shares - diluted31,530,90731,502,17231,497,24131,479,74331,489,304PERFORMANCE RATIOSReturn on average assets1.68%1.84%1.75%1.73%1.74%Return on average equity13.0914.5314.0113.7913.88Net interest margin (tax equivalent) ratio49.8646.6148.0248.0848.33Year EndedDec. 31,INCOME STATEMENTS20122011Interest income$159,796$160,021Interest expense5,1128,024Net interest income154,684151,997Provision for loan losses3,4846,626Net interest income after provision for loan losses151,200145,371Noninterest income57,20951,438Noninterest expense109,049104,624Net income before income taxes99,36092,185Income tax expense25,13523,816Net income$74,225$68,369PER COMMON SHARE DATA Net income - basic$2.36$2.17Net income - diluted2.362.17Cash dividends declared0.990.95Book value17.6816.16Market value39.0133.43Shares outstanding - end of period31,496,88131,459,635Average outstanding shares - basic31,480,15531,443,712Average outstanding shares - diluted31,501,26731,461,964PERFORMANCE RATIOSReturn on average assets1.75%1.78%Return on average equity13.8514.44Net interest margin (tax equivalent)4.284.62Efficiency ratio48.1448.37 FIRST FINANCIAL BANKSHARES, INC.SELECTED FINANCIAL DATA (UNAUDITED)(In thousands)Quarter Ended20122011ALLOWANCE FOR LOAN LOSSESDec. 31,Sept. 30,June 30,Mar. 31, Dec. 31,Balance at beginning of period$34,932$34,747$34,529$34,315$34,301Loans charged off(1,119)(1,064)(766)(1,405)(2,195)Loan recoveries384462225323988Net charge-offs(735)(602)(541)(1,082)(1,207)Provision for loan losses6427877591,2961,221Balance at end of period$34,839$34,932$34,747$34,529$34,315Allowance for loan losses / period-end loans1.67%1.74%1.81%1.92%1.92%Allowance for loan losses / nonperforming loans159.1143.4130.1164.3171.0Net charge-offs / average loans (annualized) ASSETSNonaccrual loans$21,800$24,283$26,606$20,963$19,975Accruing loans 90 days past due97691055396Total nonperforming loans21,89724,35226,71121,01620,071Foreclosed assets3,5656,3737,1497,8529,464Total nonperforming assets$25,462$30,725$33,860$28,868$29,535As a % of loans and foreclosed assets1.22%1.53%1.76%1.60%1.64%As a % of end of period total assets0.570.710.790.680.72CAPITAL RATIOSTier 1 risk-based17.43%17.66%17.23%17.73%17.49%Total risk-based18.6818.9218.4818.9918.74Tier 1 leverage10.6010.4910.3610.3110.33Equity to assets12.3712.7612.4512.2312.34Quarter Ended20122011NONINTEREST INCOMEDec. 31,Sept. 30,June 30,Mar. 31, Dec. 31,Trust fees$3,616$3,723$3,670$3,454$3,151Service charges on deposits4,4324,3374,0423,8824,313ATM, interchange and credit card fees3,9613,7673,7843,6763,551Real estate mortgage fees1,3311,4951,2181,0501,013Net gain on sale of available-for-sale securities5651,479382346164Net gain (loss) on sale of foreclosed assets162(106)(404)6(159)Net gain (loss) on sale of assets5(32)10512243Other noninterest income876836667762716Total noninterest income$14,948$15,499$13,464$13,298$12,792NONINTEREST EXPENSESalaries and employee benefits, excluding profit sharing$13,565$13,502$13,304$13,186$12,753Profit sharing expense1,4411,3438851,0431,153Net occupancy expense1,7901,8061,7431,7371,707Equipment expense2,2692,2692,1442,1082,008FDIC insurance premiums565563565527517ATM, interchange and credit card expenses1,4321,3171,4501,2491,311Legal, tax and professional fees1,1621,0199681,033994Audit  fees323311283295304Printing, stationery and supplies487468511505473Amortization of intangible assets2838384484Advertising and public relations1,0859989539421,105Correspondent bank service charges220220216200198Other noninterest expense4,2663,3493,6853,5993,650Total noninterest expense$28,633$27,203$26,745$26,468$26,257TAX EQUIVALENT YIELD ADJUSTMENT$3,727$3,743$3,673$3,495$3,348Year EndedDec. 31,NONINTEREST INCOME20122011Trust fees$14,464$12,671Service charges on deposits16,69317,689ATM, interchange and credit card fees15,18713,587Real estate mortgage fees5,0943,943Net gain on sale of available-for-sale securities2,772492Net gain (loss) on sale of foreclosed assets(350)(1,315)Net gain (loss) on sale of assets207897Other noninterest income3,1423,474Total noninterest income$57,209$51,438NONINTEREST EXPENSESalaries and employee benefits, excluding profit sharing$53,558$51,568Profit sharing expense4,7114,688Net occupancy expense7,0766,862Equipment expense8,7907,800FDIC insurance premiums2,2202,646ATM, interchange and credit card expenses5,4484,918Legal, tax and professional fees4,1824,212Audit  fees1,2111,158Printing, stationery and supplies1,9701,831Amortization of intangible assets149402Advertising and public relations3,9773,817Correspondent bank service charges856804Other noninterest expense14,90113,918Total noninterest expense$109,049$104,624TAX EQUIVALENT YIELD ADJUSTMENT$14,637$12,851 FIRST FINANCIAL BANKSHARES, INC.SELECTED FINANCIAL DATA (UNAUDITED)(In thousands)Three Months EndedDec. 31, 2012AverageTax EquivalentYield /BalanceInterestRateInterest-earning assets:  Fed funds sold$15,519$--%  Interest-bearing deposits in nonaffiliated banks133,7821300.39%  Taxable securities1,056,9456,8212.58%  Tax exempt securities807,8449,9004.90%  Loans2,035,15826,6775.21%Total interest-earning assets4,049,24843,5284.28%Noninterest-earning assets296,905Total assets$4,346,153Interest-bearing liabilities:  Deposits$2,267,207$9900.17%  Fed funds purchased and other short term borrowings267,669590.09%Total interest-bearing liabilities2,534,8761,0490.16%Noninterest-bearing liabilities                                                                              1,254,694Shareholders' equity556,583Total liabilities and shareholders' equity$4,346,153Net interest income and margin (tax equivalent)$42,4794.17%Year EndedDec. 31, 2012AverageTax EquivalentYield /BalanceInterestRateInterest-earning assets:  Fed funds sold$11,589$60.05%  Interest-bearing deposits in nonaffiliated banks122,9997480.61%  Taxable securities1,144,76331,3182.74%  Tax exempt securities762,75439,0495.12%  Loans1,909,890103,3125.41%Total interest-earning assets3,951,995174,4334.41%Noninterest-earning assets285,922Total assets$4,237,917Interest-bearing liabilities:  Deposits$2,255,239$4,8770.22%  Fed funds purchased and other short term borrowings258,8632350.09%Total interest-bearing liabilities2,514,1025,1120.20%Noninterest-bearing liabilities                                                                              1,187,883Shareholders' equity535,932Total liabilities and shareholders' equity$4,237,917Net interest income and margin (tax equivalent)$169,3214.28%SOURCE First Financial Bankshares, Inc.For further information: J. Bruce Hildebrand, Executive Vice President, +1-325-627-7155