Published:
First Financial Bankshares Announces First Quarter Earnings Up 14.8 Percent
ABILENE, Texas, April 17 /PRNewswire-FirstCall/ -- First Financial
Bankshares, Inc. (Nasdaq: FFIN) today reported earnings for the first quarter
of 2008 of $13.16 million, up 14.8 percent from $11.46 million in the same
quarter last year. Basic earnings per share increased 14.5 percent to $0.63
in the first quarter of 2008, compared with $0.55 in the same period last
year.
Net interest income for the first quarter of 2008 increased 12.3 percent
to $29.83 million compared with $26.57 million in the same quarter last year.
The net interest margin, on a taxable equivalent basis, rose to 4.58 percent
for the first quarter of 2008 compared with 4.38 percent in the same period a
year ago and 4.50 percent for the quarter ended December 31, 2007. These
favorable changes resulted primarily from increased loan volume and management
of deposit rates as interest rates declined 300 basis points over the past six
months. The provision for loan losses was $1.07 million in the first quarter
of 2008, up from $242,000 in the same quarter last year reflective of the
growth in loans and the Company's concern for a slowing national economy.
Non-performing assets as a percentage of loans and foreclosed assets totaled
38 basis points at March 31, 2008, compared with 31 basis points at December
31, 2007, and 55 basis points at March 31, 2007.
Noninterest income in the first quarter of 2008 was $12.31 million
compared with $10.92 million in the same quarter a year earlier. Trust fees
increased 12.8 percent to $2.37 million compared with $2.10 million in the
first quarter last year. Service charges on deposit accounts increased
7.5 percent to $5.53 million compared with $5.14 million a year ago. Real
estate mortgage fees decreased 18.1 percent to $605,000 from $738,000 in the
same quarter last year. ATM and credit card fees increased 18.2 percent to
$2.03 million from $1.72 million a year ago, indicative of continued increased
use of debit cards.
Noninterest expense increased 8.6 percent in the first quarter of 2008 to
$22.66 million from $20.87 million in the same quarter last year, due in part
to higher salaries from annual pay raises and increased profit sharing and
healthcare expenses. The Company's efficiency ratio in the first quarter
improved to 51.86 percent compared with 53.89 percent in the same quarter a
year ago.
"We are pleased we were able to improve our net interest margin and report
another quarter of increased earnings, especially in light of the Federal
Reserve Board's dramatic reduction in interest rates and the slowing economy,"
said F. Scott Dueser, President and Chief Executive Officer. "We were prepared
for the Federal Reserve to reduce rates over the last six months; however, it
will be difficult to compensate for future rate cuts. We will continue to work
hard to maintain healthy margins and manage the Company prudently and
cautiously given the current economic environment."
As of March 31, 2008, consolidated assets for the Company totaled $3.06
billion compared with $2.87 billion a year ago. Loans totaled $1.54 billion
at quarter end, compared with loans of $1.41 billion a year ago. Total
deposits were $2.50 billion as of March 31, 2008, compared with $2.43 billion
a year earlier. Noninterest-bearing deposits grew $59.8 million from a year
ago. Shareholders' equity rose to $351.8 million as of March 31, 2008,
compared with $308.2 million the prior year.
Headquartered inAbilene, Texas, First Financial Bankshares is a financial
holding company that operates ten separately chartered banks with 47 locations
inTexas. The bank subsidiaries are First Financial Bank, N.A.,Abilene,
Albany,Clyde andMoran; First Financial Bank, N.A.,Eastland,Ranger and
Rising Star; First Financial Bank, N.A.,Cleburne,Burleson,Alvarado and
Midlothian; Hereford State Bank, Hereford; First Financial Bank, N.A.,Mineral
Wells; San Angelo National Bank,San Angelo; First Financial Bank, N.A.,
Southlake,Bridgeport,Boyd,Decatur,Keller andTrophy Club; First Financial
Bank, N.A.,Stephenville,Granbury,Glen Rose andActon; First Financial Bank,
N.A.,Sweetwater,Roby andTrent; and Weatherford National Bank, Weatherford,
Willow Park,Aledo andBrock. The Company also operates First Financial Trust
and Asset Management Company, N.A., with five 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)
March 31,
2008 2007
ASSETS:
Cash and due from banks $138,118 $110,006
Fed funds sold 114,950 109,110
Investment securities 1,127,394 1,097,959
Loans 1,535,890 1,406,867
Allowance for loan losses (18,377) (16,458)
Net loans 1,517,513 1,390,409
Premises and equipment 63,187 59,855
Goodwill 62,113 62,113
Other intangible assets 2,784 4,206
Other assets 35,877 36,788
Total assets $3,061,936 $2,870,446
LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $717,547 $657,786
Interest-bearing deposits 1,787,135 1,768,057
Total deposits 2,504,682 2,425,843
Short-term borrowings 163,122 111,614
Other liabilities 42,373 24,780
Shareholders' equity 351,759 308,209
Total liabilities and
shareholders' equity $3,061,936 $2,870,446
Three Months Ended
March 31,
INCOME STATEMENTS 2008 2007
Interest income $41,746 $41,072
Interest expense 11,917 14,499
Net interest income 29,829 26,573
Provision for loan losses 1,068 242
Net interest income after provision
for loan losses 28,761 26,331
Noninterest income 12,312 10,920
Noninterest expense 22,661 20,867
Net income before income taxes 18,412 16,384
Income tax expense 5,250 4,922
Net income $13,162 $11,462
PER COMMON SHARE DATA
Net income - basic $0.63 $0.55
Net income - diluted 0.63 0.55
Cash dividends 0.32 0.30
Book value 16.93 14.85
Market value 40.98 41.82
Shares outstanding - end of period 20,782,926 20,754,796
Average outstanding shares - basic 20,773,940 20,747,188
Average outstanding shares - diluted 20,801,221 20,796,236
PERFORMANCE RATIOS
Return on average assets 1.75 % 1.64 %
Return on average equity 15.42 15.42
Net interest margin (tax equivalent) 4.58 4.38
Efficiency ratio 51.86 53.89
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
2008 2007
March 31, Dec. 31, Sept. 30, June 30, March 31,
ALLOWANCE FOR LOAN
LOSSES
Balance at beginning
of period $17,462 $16,728 $16,425 $16,458 $16,201
Loans charged off (288) (803) (342) (505) (147)
Loan recoveries 135 160 170 234 162
Net (charge-offs)
recoveries (153) (643) (172) (271) 15
Provision for loan
losses 1,068 1,377 475 238 242
Balance at end of
period $18,377 $17,462 $16,728 $16,425 $16,458
Allowance for loan
losses / period-end
loans 1.20 % 1.14 % 1.15 % 1.18 % 1.17 %
Allowance for loan
losses /
nonperforming loans 465.0 541.5 395.6 387.4 226.5
Net charge-offs
(recoveries) /
average loans
(annualized) 0.04 0.17 0.05 0.08 0.00
NONPERFORMING ASSETS
Nonaccrual loans $3,933 $3,189 $4,023 $4,179 $6,338
Accruing loans 90
days past due 19 36 206 61 928
Total
nonperforming
loans 3,952 3,225 4,229 4,240 7,266
Foreclosed assets 1,908 1,506 2,594 2,174 434
Total
nonperforming
assets $5,860 $4,731 $6,823 $6,414 $7,700
As a % of loans and
foreclosed assets 0.38 % 0.31 % 0.47 % 0.46 % 0.55 %
CAPITAL RATIOS
Tier 1 Risk-based 15.08 % 14.65 % 14.81 % 14.85 % 14.71 %
Total Risk-based 16.09 15.62 15.76 15.81 15.69
Tier 1 Leverage 9.34 9.23 9.31 9.05 8.89
Equity to assets 11.49 10.93 11.12 10.75 10.74
Three Months Ended
March 31,
NONINTEREST INCOME 2008 2007
Gain on sale of student loans, net $283 $163
Gain on securities transactions, net 393 85
Trust fees 2,369 2,100
Service charges on deposits 5,525 5,139
Real estate mortgage fees 605 738
Net gain (loss) on sale of
foreclosed assets 104 12
ATM and credit card fees 2,032 1,718
Other noninterest income 1,001 965
Total Noninterest Income $12,312 $10,920
NONINTEREST EXPENSE
Salaries and employee benefits $12,548 $11,439
Net occupancy expense 1,591 1,409
Equipment expense 1,847 1,745
Printing, stationery and supplies 510 472
ATM and credit card expenses 1,000 929
Audit fees 262 249
Legal, tax and professional fees 743 673
Correspondent bank service charges 265 326
Advertising and public relations 642 559
Amortization of intangible assets 311 383
Other noninterest expense 2,942 2,683
Total Noninterest Expense $22,661 $20,867
TAX EQUIVALENT YIELD ADJUSTMENT $1,555 $1,227
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended
March 31, 2008
Tax
Average Equivalent Yield /
Balance Interest Rate
Interest-earning assets:
Fed funds sold $112,829 $850 3.03 %
Interest-bearing deposits in
nonaffiliated banks 2,088 20 3.79 %
Taxable securities 784,529 9,118 4.65 %
Tax exempt securities 320,483 4,821 6.02 %
Loans 1,535,143 28,492 7.46 %
Total interest earning assets 2,755,072 43,301 6.32 %
Noninterest earning assets 261,332
Total assets $3,016,404
Interest-bearing liabilities:
Deposits $1,795,823 $11,088 2.48 %
Fed funds purchased and other short
term borrowings 164,269 829 2.03 %
Total interest-bearing liabilities 1,960,092 11,917 2.45 %
Noninterest-bearing liabilities 712,946
Shareholders' equity 343,366
Total liabilities and shareholders'
equity $3,016,404
Net interest income and margin (tax
equivalent) $31,384 4.58 %
SOURCE First Financial Bankshares, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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