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8-K - FORM 8-K - FIRST FINANCIAL BANKSHARES INCd523405d8k.htm

Exhibit 99.1

 

For immediate release    For More Information:
   J. Bruce Hildebrand, Executive Vice President
   325.627.7155

FIRST FINANCIAL BANKSHARES ANNOUNCES

FIRST QUARTER EARNINGS RESULTS

ABILENE, Texas, April 18, 2013 – First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the first quarter of 2013 of $18.58 million, up 4.62 percent compared with earnings of $17.76 million in the same quarter last year. Basic earnings per share were $0.59 for the first quarter of 2013 compared with $0.56 in the same quarter a year ago.

Net interest income increased 1.08 percent to $38.67 million compared with $38.26 million in the same period of 2012. The net interest margin, on a taxable equivalent basis, was 4.19 percent, up two basis points from 4.17 percent in the fourth quarter of 2012. The net interest margin was 4.39 in the first quarter of 2012.

The provision for loan losses was $401 thousand in the first quarter of 2013, compared with $1.30 million in the same quarter last year and $642 thousand in the fourth quarter of 2012. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.20 percent at March 31, 2013, compared with 1.22 percent at December 31, 2012, and 1.60 percent at March 31, 2012. Classified loans totaled $70.18 million at March 31, 2013, compared to $67.14 million at December 31, 2012, and $90.36 million at March 31, 2012.

Noninterest income increased 4.98 percent in the first quarter of 2013 to $13.96 million compared with $13.30 million in the same quarter a year ago. Trust fees increased to $3.79 million in the first quarter of 2013 compared with $3.45 million in the same quarter last year primarily due to continued growth in the fair value of Trust assets managed to $3.02 billion from $2.63 billion a year ago. Real estate mortgage fees increased 31.81 percent to $1.38 million compared with $1.05 million in the same quarter last year due to a stronger housing market and increased market share.

Noninterest expense increased in the first quarter of 2013 to $27.47 million from $26.47 million in the same quarter last year. The Company’s efficiency ratio in the first quarter of 2013 was 48.68 percent compared with 48.08 percent in the same quarter last year. Included in noninterest expense for the first quarter of 2013 was $143 thousand, primarily legal and travel, related to the Company’s recently announced acquisition of Orange Savings Bank, SSB, which is expected to close in the second quarter of 2013.

As of March 31, 2013, consolidated assets for the Company totaled $4.46 billion compared with $4.23 billion a year ago. Loans grew 18.86 percent and totaled $2.14 billion at quarter end compared to $1.80 billion a year ago. Total deposits were $3.55 billion as of March 31, 2013, which represents a 4.47 percent growth over $3.40 billion a year earlier. Shareholders’ equity rose to $564.25 million as of March 31, 2013, compared with $517.01 million at March 31, 2012.


“We are pleased to report another profitable quarter for our company,” said F. Scott Dueser, Chairman, President and CEO. “We continue to see good growth in earnings and loans while continuing to work to improve our efficiencies and are excited about our upcoming acquisition of Orange Savings Bank.”

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 banking regions with 56 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)

 

                                                                                              
     As of  
     2013     2012  
     Mar. 31,     Dec. 31,     Sept. 30,     June 30,     Mar. 31,  

ASSETS:

          

Cash and due from banks

   $ 113,958      $ 207,018      $ 128,606      $ 122,534      $ 131,163   

Interest-bearing deposits in banks

     20,065        139,676        25,633        25,794        84,169   

Interest-bearing time deposits in banks

     45,172        49,005        67,506        74,594        62,018   

Fed funds sold

     3,175        14,045        23,400        10,100        11,200   

Investment securities

     1,959,054        1,820,096        1,883,864        1,963,367        1,963,341   

Loans

     2,138,137        2,088,623        2,003,854        1,918,292        1,798,867   

Allowance for loan losses

     (34,672     (34,839     (34,932     (34,747     (34,529
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loans

     2,103,465        2,053,784        1,968,922        1,883,545        1,764,338   

Premises and equipment

     86,265        84,122        80,580        80,404        79,308   

Goodwill

     71,865        71,865        71,865        71,865        71,865   

Other intangible assets

     98        108        136        175        213   

Other assets

     52,863        62,293        60,035        59,426        59,635   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 4,455,980      $ 4,502,012      $ 4,310,547      $ 4,291,804      $ 4,227,250   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

          

Noninterest-bearing deposits

   $ 1,237,840      $ 1,311,708      $ 1,200,154      $ 1,156,238      $ 1,125,577   

Interest-bearing deposits

     2,312,286        2,320,876        2,244,244        2,235,942        2,272,495   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     3,550,126        3,632,584        3,444,398        3,392,180        3,398,072   

Short-term borrowings

     263,345        259,697        254,480        251,428        237,567   

Other liabilities

     78,257        52,768        61,757        113,933        74,606   

Shareholders’ equity

     564,252        556,963        549,912        534,263        517,005   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 4,455,980      $ 4,502,012      $ 4,310,547      $ 4,291,804      $ 4,227,250   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Quarter Ended  
     2013     2012  
     Mar. 31,     Dec. 31,     Sept. 30,     June 30,     Mar. 31,  

INCOME STATEMENTS

          

Interest income

   $ 39,575      $ 39,801      $ 40,287      $ 39,911      $ 39,797   

Interest expense

     904        1,049        1,168        1,355        1,540   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     38,671        38,752        39,119        38,556        38,257   

Provision for loan losses

     401        642        787        759        1,296   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

     38,270        38,110        38,332        37,797        36,961   

Noninterest income

     13,960        14,948        15,499        13,464        13,298   

Noninterest expense

     27,471        28,633        27,203        26,745        26,468   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income before income taxes

     24,759        24,425        26,628        24,516        23,791   

Income tax expense

     6,182        6,107        6,828        6,165        6,035   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 18,577      $ 18,318      $ 19,800      $ 18,351      $ 17,756   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PER COMMON SHARE DATA

          

Net income - basic

   $ 0.59      $ 0.58      $ 0.63      $ 0.58      $ 0.56   

Net income - diluted

     0.59        0.58        0.63        0.58        0.56   

Cash dividends declared

     0.25        0.25        0.25        0.25        0.24   

Shares outstanding - end of period

     31,519,973        31,496,881        31,488,530        31,481,747        31,477,483   

Average outstanding shares - basic

     31,507,975        31,490,402        31,484,375        31,478,980        31,466,706   

Average outstanding shares - diluted

     31,601,364        31,530,907        31,502,172        31,497,241        31,479,743   

PERFORMANCE RATIOS

          

Return on average assets

     1.71     1.68     1.84     1.75     1.73

Return on average equity

     13.41        13.09        14.53        14.01        13.79   

Net interest margin (tax equivalent)

     4.19        4.17        4.26        4.33        4.39   

Efficiency ratio

     48.68        49.86        46.61        48.02        48.08   


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

     Quarter Ended  
     2013     2012  
     Mar. 31,     Dec. 31,     Sept. 30,     June 30,     Mar. 31,  

ALLOWANCE FOR LOAN LOSSES

          

Balance at beginning of period

   $ 34,839      $ 34,932      $ 34,747      $ 34,529      $ 34,315   

Loans charged off

     (823     (1,119     (1,064     (766     (1,405

Loan recoveries

     255        384        462        225        323   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net charge-offs

     (568     (735     (602     (541     (1,082

Provision for loan losses

     401        642        787        759        1,296   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at end of period

   $ 34,672      $ 34,839      $ 34,932      $ 34,747      $ 34,529   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for loan losses / period-end loans

     1.62     1.67     1.74     1.81     1.92

Allowance for loan losses / nonperforming loans

     153.9        159.1        143.4        130.1        164.3   

Net charge-offs / average loans (annualized)

     0.11        0.14        0.12        0.12        0.24   

NONPERFORMING ASSETS

          

Nonaccrual loans

   $ 22,509      $ 21,800      $ 24,283      $ 26,606      $ 20,963   

Accruing loans 90 days past due

     24        97        69        105        53   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming loans

     22,533        21,897        24,352        26,711        21,016   

Foreclosed assets

     3,185        3,565        6,373        7,149        7,852   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets

   $ 25,718      $ 25,462      $ 30,725      $ 33,860      $ 28,868   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

As a % of loans and foreclosed assets

     1.20     1.22     1.53     1.76     1.60

As a % of end of period total assets

     0.58        0.57        0.71        0.79        0.68   

CAPITAL RATIOS

          

Tier 1 risk-based

     17.54     17.43     17.66     17.23     17.73

Total risk-based

     18.80        18.68        18.92        18.48        18.99   

Tier 1 leverage

     10.69        10.60        10.49        10.36        10.31   

Equity to assets

     12.66        12.37        12.76        12.45        12.23   
     Quarter Ended  
     2013     2012  
     Mar. 31,     Dec. 31,     Sept. 30,     June 30,     Mar. 31,  

NONINTEREST INCOME

          

Trust fees

   $ 3,793      $ 3,616      $ 3,723      $ 3,670      $ 3,454   

Service charges on deposits

     3,895        4,432        4,337        4,042        3,882   

ATM, interchange and credit card fees

     3,729        3,961        3,767        3,784        3,676   

Real estate mortgage fees

     1,384        1,331        1,495        1,218        1,050   

Net gain on sale of available-for-sale securities

     222        565        1,479        382        346   

Net gain (loss) on sale of foreclosed assets

     (316     162        (106     (404     6   

Net gain (loss) on sale of assets

     168        5        (32     105        122   

Other noninterest income

     1,085        876        836        667        762   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest income

   $ 13,960      $ 14,948      $ 15,499      $ 13,464      $ 13,298   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NONINTEREST EXPENSE

          

Salaries and employee benefits, excluding profit sharing

   $ 14,101      $ 13,565      $ 13,502      $ 13,304      $ 13,186   

Profit sharing expense

     1,079        1,441        1,343        885        1,043   

Net occupancy expense

     1,766        1,790        1,806        1,743        1,737   

Equipment expense

     2,281        2,269        2,269        2,144        2,108   

FDIC insurance premiums

     572        565        563        565        527   

ATM, interchange and credit card expenses

     1,340        1,432        1,317        1,450        1,249   

Legal, tax and professional fees

     993        1,162        1,019        968        1,033   

Audit fees

     334        323        311        283        295   

Printing, stationery and supplies

     472        487        468        511        505   

Amortization of intangible assets

     10        28        38        38        44   

Advertising and public relations

     994        1,085        998        953        942   

Correspondent bank service charges

     202        220        220        216        200   

Other noninterest expense

     3,327        4,266        3,349        3,685        3,599   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest expense

   $ 27,471      $ 28,633      $ 27,203      $ 26,745      $ 26,468   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TAX EQUIVALENT YIELD ADJUSTMENT

   $ 3,795      $ 3,727      $ 3,743      $ 3,673      $ 3,495   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

     Three Months Ended  
     Mar. 31, 2013  
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

        

Fed funds sold

   $ 12,907       $ 5         0.17

Interest-bearing deposits in nonaffiliated banks

     124,688         171         0.56

Taxable securities

     1,038,706         6,375         2.45

Tax exempt securities

     824,947         10,073         4.88

Loans

     2,111,138         26,747         5.14
  

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     4,112,386         43,371         4.28

Noninterest-earning assets

     298,906         
  

 

 

       

Total assets

   $ 4,411,292         
  

 

 

       

Interest-bearing liabilities:

        

Deposits

   $ 2,320,932       $ 868         0.15

Fed funds purchased and other short term borrowings

     270,561         37         0.06
  

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     2,591,493         905         0.14

Noninterest-bearing liabilities

     1,258,152         

Shareholders’ equity

     561,647         
  

 

 

       

Total liabilities and shareholders’ equity

   $ 4,411,292         
  

 

 

       
        
     

 

 

    

Net interest income and margin (tax equivalent)

      $ 42,466         4.19