FIRST FINANCIAL BANKSHARES, INC. 
By ABILENE, Texas, Jan. 28 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) today reported earnings for the fourth quarter of 2009 of $12.54 million, down 3.8 percent compared with earnings of $13.04 million in the same quarter last year. For the year, net income increased 1.19 percent to $53.80 million in 2009 from $53.16 million the previous year, making 2009 the Company's 23rd consecutive year of earnings growth.
Basic earnings per share were $0.60 for the fourth quarter of 2009 compared with $0.63 a year ago. For the year, basic earnings per share were $2.58, compared with $2.56 in the previous year.
Net interest income for the fourth quarter of 2009 was $32.54 million compared with $32.65 million in the same quarter last year. The net interest margin, on a taxable equivalent basis, was 4.74 percent for the fourth quarter of 2009 compared with 4.77 percent in the same period a year ago and 4.92 percent for the quarter ended September 30, 2009. The provision for loan losses was $4.37 million in the fourth quarter of 2009, up from $3.68 million in the same quarter last year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.46 percent at December 31, 2009, compared with 1.30 basis points at September 30, 2009, and 80 basis points at December 31, 2008.
Noninterest income in the fourth quarter of 2009 was $12.06 million compared with $11.40 million in the same quarter a year earlier. Trust fees increased to $2.51 million in the fourth quarter of 2009 compared with $2.21 million in the same quarter last year. Service charges on deposit accounts were $5.66 million compared with $5.59 million a year ago. Real estate mortgage fees increased to $732,000 from $518,000 in the same quarter last year. ATM and debit card fees increased to $2.48 million from $2.28 million a year ago.
Noninterest expense rose 5.1 percent in the fourth quarter of 2009 to $23.68 million from $22.53 million in the same quarter last year. FDIC insurance premiums were $819,000 during the fourth quarter, compared with $214,000 in the same quarter last year. The Company's efficiency ratio in the fourth quarter of 2009 was 50.18 percent compared with 48.88 percent in the same quarter a year ago. Salaries and employee benefits increased to $13.05 million from $11.74 million a year ago primarily due to increased pension plan expense, which was frozen in 2003, and the opportunity to hire additional high quality and experienced bankers.
As previously noted, the Company reported its 23rd consecutive year of earnings growth in 2009, with net income of $53.80 million in 2009 compared with $53.16 million the previous year. Net interest income increased 4.3 percent to $129.17 million from $123.90 million last year. Noninterest income decreased 1.73 percent from $49.45 million to $48.60 million primarily due to less usage of overdraft privilege and a $692,000 decline in income from student loan sales as the Company exited the student loan program. Noninterest expense was $94.00 million in 2009, up 2.6 percent from $91.59 million a year ago. Salaries and employee benefits increased to $49.49 million from $45.29 million a year ago. The largest increase in noninterest expenses was FDIC insurance premiums which increased $4.24 million over the prior year.
As of December 31, 2009, consolidated assets for the Company totaled $3.28 billion compared with $3.21 billion a year ago. Loans totaled $1.51 billion at quarter end, compared with loans of $1.57 billion a year ago. Total deposits were $2.68 billion as of December 31, 2009, compared with $2.58 billion a year earlier. Shareholders' equity rose to $415.70 million as of December 31, 2009, compared with $368.78 million the prior year.
"We are extremely pleased to report another year of earnings growth, especially in light of the challenges of the national recession, low interest rates, higher loan loss provisions and a significant increase in FDIC insurance premiums," said F. Scott Dueser, Chairman, President and Chief Executive Officer. "Throughout the year, our bank presidents did an exceptional job of managing their net interest margin, improving their efficiencies and minimizing credit losses. We continue to aggressively address our nonperforming assets and are committed to the highest performance and service for our shareholders and customers."
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)
December 31,
----------------
2009 2008
---- ----
ASSETS:
Cash and due from banks $139,917 $137,570
Interest bearing deposits in banks 167,336 3,658
Fed funds sold 14,290 27,660
Investment securities 1,285,377 1,318,406
Loans 1,514,368 1,566,143
Allowance for loan losses (27,612) (21,529)
------- -------
Net loans 1,486,756 1,544,614
Premises and equipment 64,363 65,675
Goodwill 62,112 62,112
Other intangible assets 1,040 1,891
Other assets 58,265 50,799
------ ------
Total assets $3,279,456 $3,212,385
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $836,323 $797,077
Interest-bearing deposits 1,848,434 1,785,676
--------- ---------
Total deposits 2,684,757 2,582,753
Short-term borrowings 146,094 235,598
Other liabilities 32,903 25,252
Shareholders' equity 415,702 368,782
------- -------
Total liabilities and shareholders'
equity $3,279,456 $3,212,385
========== ==========
Three Months Ended Year Ended
December 31, December 31,
------------------ ----------------
INCOME STATEMENTS 2009 2008 2009 2008
----- ---- ---- ----
Interest income $36,417 $39,239 $146,445 $159,154
Interest expense 3,872 6,593 17,274 35,259
----- ----- ------ ------
Net interest
income 32,545 32,646 129,171 123,895
Provision for
loan losses 4,365 3,683 11,419 7,957
----- ----- ------ -----
Net interest
income after
provision for
loan losses 28,180 28,963 117,752 115,938
Noninterest
income 12,061 11,395 48,598 49,453
Noninterest
expense 23,675 22,532 94,000 91,587
------ ------ ------ ------
Net income
before income
taxes 16,566 17,826 72,350 73,804
Income tax
expense 4,025 4,787 18,553 20,640
----- ----- ------ ------
Net income $12,541 $13,039 $53,797 $53,164
======= ======= ======= =======
PER COMMON SHARE DATA
Net income -
basic $0.60 $0.63 $2.58 $2.56
Net income -
diluted 0.60 0.62 2.58 2.55
Cash dividends 0.34 0.34 1.36 1.34
Book value 19.96 17.73
Market value 54.23 55.21
Shares
outstanding -
end of period 20,826,431 20,799,198 20,826,431 20,799,198
Average
outstanding
shares - basic 20,823,913 20,794,783 20,813,590 20,787,243
Average
outstanding
shares - diluted 20,851,925 20,863,659 20,837,457 20,841,363
PERFORMANCE RATIOS
Return on
average assets 1.56% 1.64% 1.72% 1.74%
Return on
average equity 12.07 14.79 13.63 15.27
Net interest
margin (tax
equivalent) 4.74 4.77 4.80 4.67
Efficiency ratio 50.18 48.88 50.11 50.76
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
-------------------------------------------------------
2009 2008
-------------------------------------------- ---------
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
--------- ---------- --------- ---------- ---------
ALLOWANCE FOR
LOAN LOSSES
Balance at
beginning of
period $25,532 $23,247 $22,652 $21,529 $20,048
Loans charged
off (2,430) (1,662) (1,225) (893) (2,406)
Loan
recoveries 145 241 232 255 204
--- --- --- --- ---
Net charge-
offs (2,285) (1,421) (993) (638) (2,202)
Provision for
loan losses 4,365 3,706 1,588 1,761 3,683
----- ----- ----- ----- -----
Balance at end
of period $27,612 $25,532 $23,247 $22,652 $21,529
======= ======= ======= ======= =======
Allowance for
loan losses /
period-end
loans 1.82% 1.76% 1.57% 1.53% 1.37%
Allowance for
loan losses /
nonperforming
loans 148.8 174.4 225.4 233.5 216.8
Net charge-
offs /average
loans
(annualized) 0.62 0.38 0.27 0.17 0.56
NONPERFORMING ASSETS
Nonaccrual
loans $18,540 $14,585 $10,242 $9,606 $9,893
Accruing loans
90 days past
due 15 56 72 94 36
-- -- -- -- --
Total
nonperforming
loans 18,555 14,641 10,314 9,700 9,929
Foreclosed
assets 3,533 4,367 3,755 4,415 2,602
----- ----- ----- ----- -----
Total
nonperforming
assets $22,088 $19,008 $14,069 $14,115 $12,531
======= ======= ======= ======= =======
As a % of
loans and
foreclosed
assets 1.46% 1.30% 0.95% 0.95% 0.80%
As a % of end
of period
total assets 0.67 0.62 0.46 0.45 0.39
CAPITAL RATIOS
Tier 1 Risk-
based 17.73% 18.12% 17.36% 16.80% 15.89%
Total Risk-
based 18.99 19.37 18.61 18.05 17.04
Tier 1
Leverage 10.69 10.83 10.53 10.01 9.68
Equity to
assets 12.68 13.51 12.64 12.22 11.48
Three Months Ended Year Ended
December 31, December 31,
------------------ --------------
NONINTEREST INCOME 2009 2008 2009 2008
------ ------ ---- ----
Gain (loss) on sale of student
loans, net $94 $(42) $983 $1,675
Gain on securities transactions,
net 206 346 1,851 1,052
Trust fees 2,513 2,211 9,083 9,441
Service charges on deposits 5,662 5,591 21,956 22,597
Real estate mortgage fees 732 518 2,909 2,536
Net gain (loss) on sale of
foreclosed assets (361) (111) (548) 5
ATM and credit card fees 2,484 2,281 9,546 8,904
Other noninterest income 731 601 2,818 3,243
--- --- ----- -----
Total Noninterest Income $12,061 $11,395 $48,598 $49,453
======= ======= ======= =======
NONINTEREST EXPENSE
Salaries and employee benefits,
excluding profit sharing $12,431 $11,291 $47,126 $45,879
Profit sharing expense 621 449 2,360 3,406
Net occupancy expense 1,508 1,670 6,293 6,735
Equipment expense 1,915 1,941 7,743 7,547
Printing, stationery and supplies 486 458 1,892 1,891
ATM and credit card expenses 738 1,172 3,200 4,443
Audit fees 224 310 1,063 1,194
Legal, tax and professional fees 782 769 3,253 2,977
FDIC Insurance premiums 819 214 4,893 652
Correspondent bank service
charges 193 300 1,032 1,169
Advertising and public relations 783 655 2,566 2,590
Amortization of intangible assets 199 287 851 1,204
Other noninterest expense 2,976 3,016 11,728 11,900
----- ----- ------ ------
Total Noninterest Expense $23,675 $22,532 $94,000 $91,587
======= ======= ======= =======
TAX EQUIVALENT YIELD ADJUSTMENT $2,575 $2,060 $9,832 $7,087
====== ====== ====== ======
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended
December 31, 2009
----------------------------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------------- -------
Interest-earning assets:
Fed funds sold $21,507 $7 0.13%
Interest-bearing deposits in
nonaffiliated banks 142,242 198 0.55%
Taxable securities 852,384 9,013 4.23%
Tax exempt securities 455,022 6,992 6.15%
Loans 1,466,614 22,782 6.16%
--------- ------ ----
Total interest-earning assets 2,937,769 38,992 5.27%
Noninterest-earning assets 243,379
-------
Total assets $3,181,148
==========
Interest-bearing liabilities:
Deposits $1,787,736 $3,706 0.82%
Fed funds purchased and other
short term borrowings 159,052 166 0.41%
------- --- ----
Total interest-bearing
liabilities 1,946,788 3,872 0.79%
-----
Noninterest-bearing
liabilities 822,065
Shareholders' equity 412,295
-------
Total liabilities and
shareholders' equity $3,181,148
==========
Net interest income and margin (tax
equivalent) $35,120 4.74%
======= ====
Year Ended
December 31, 2009
---------------------------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------------- -------
Interest-earning assets:
Fed funds sold $33,527 $74 0.22%
Interest-bearing deposits in
nonaffiliated banks 58,227 341 0.59%
Taxable securities 874,331 37,115 4.24%
Tax exempt securities 433,780 26,950 6.21%
Loans 1,494,876 91,797 6.14%
--------- ------ ----
Total interest-earning assets 2,894,741 156,277 5.40%
Noninterest-earning assets 230,811
-------
Total assets $3,125,552
==========
Interest-bearing liabilities:
Deposits $1,755,275 $16,474 0.94%
Fed funds purchased and other
short term borrowings 183,228 800 0.44%
------- --- ----
Total interest-bearing
liabilities 1,938,503 17,274 0.89%
------
Noninterest-bearing
liabilities 792,237
Shareholders' equity 394,812
-------
Total liabilities and
shareholders' equity $3,125,552
==========
Net interest income and margin (tax
equivalent) $139,003 4.80%
======== ====
SOURCE First Financial Bankshares, Inc.
