FIRST FINANCIAL BANKSHARES, INC. 
By Net interest income for the fourth quarter of 2008 increased 11.6 percent to
Noninterest income in the fourth quarter of 2008 was
Noninterest expense declined slightly in the fourth quarter to
The provision for loan losses increased to
The Company reported its 22nd consecutive year of increased earnings. Net income for the year increased 7.4 percent to
As of
"We are pleased to report to our shareholders and customers another quarter and another year of earnings growth," said
Headquartered in
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,
------------
2008 2007
---- ----
ASSETS:
Cash and due from banks $141,228 $165,438
Fed funds sold 27,660 99,450
Investment securities 1,318,406 1,120,912
Loans 1,566,143 1,528,020
Allowance for loan losses (21,529) (17,462)
------- -------
Net loans 1,544,614 1,510,558
Premises and equipment 65,675 61,670
Goodwill 62,112 62,112
Other intangible assets 1,891 3,095
Other assets 50,799 47,074
------ ------
Total assets $3,212,385 $3,070,309
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $797,077 $739,181
Interest-bearing deposits 1,785,676 1,806,902
--------- ---------
Total deposits 2,582,753 2,546,083
Short-term borrowings 235,598 166,266
Other liabilities 25,252 22,465
Shareholders' equity 368,782 335,495
------- -------
Total liabilities and shareholders' equity $3,212,385 $3,070,309
========== ==========
Three Months Ended Year Ended
December 31, December 31,
INCOME STATEMENTS 2008 2007 2008 2007
----------------- ---- ---- ---- ----
Interest income $39,239 $43,482 $159,154 $169,369
Interest expense 6,593 14,229 35,259 58,557
----- ------ ------ ------
Net interest income 32,646 29,253 123,895 110,812
Provision for loan
losses 3,683 1,377 7,957 2,331
----- ----- ----- -----
Net interest
income after
provision for loan
losses 28,963 27,876 115,938 108,481
Noninterest income 11,395 12,390 49,453 48,273
Noninterest expense 22,532 22,730 91,587 86,827
------ ------ ------ ------
Net income
before income
taxes 17,826 17,536 73,804 69,927
Income tax expense 4,787 5,030 20,640 20,437
----- ----- ------ ------
Net income $13,039 $12,506 $53,164 $49,490
======= ======= ======= =======
PER COMMON SHARE DATA
----------------------
Net income - basic $0.63 $0.60 $2.56 $2.38
Net income - diluted 0.62 0.60 2.55 2.38
Cash dividends 0.34 0.32 1.34 1.26
Book value 17.73 16.16
Market value 55.21 37.65
Shares outstanding
- end of period 20,799,198 20,766,848 20,799,198 20,766,848
Average outstanding
shares - basic 20,794,783 20,765,397 20,787,243 20,757,868
Average outstanding
shares - diluted 20,863,659 20,800,214 20,841,363 20,800,110
PERFORMANCE RATIOS
Return on average
assets 1.64% 1.68% 1.74% 1.72%
Return on average
equity 14.79 15.25 15.27 15.87
Net interest
margin (tax
equivalent) 4.77 4.50 4.67 4.43
Efficiency ratio 48.88 52.78 50.76 52.83
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
-------------
2008 2007
---- ----
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
------- --------- -------- --------- --------
ALLOWANCE FOR LOAN
LOSSES
Balance at beginning
of period $20,048 $18,677 $18,377 $17,462 $16,728
Loans charged off (2,406) (647) (1,374) (288) (803)
Loan recoveries 204 253 233 135 160
--- --- --- --- ---
Net (charge-offs)
recoveries (2,202) (394) (1,141) (153) (643)
Provision for loan
losses 3,683 1,765 1,441 1,068 1,377
----- ----- ----- ----- -----
Balance at end
of period $21,529 $20,048 $18,677 $18,377 $17,462
======= ======= ======= ======= =======
Allowance for loan
losses / period-
end loans 1.37% 1.28% 1.23% 1.20% 1.14%
Allowance for loan
losses /
nonperforming
loans 216.8 245.7 208.4 465.0 541.5
Net charge-offs
(recoveries)
/average loans
(annualized) 0.56 0.10 0.30 0.04 0.17
NONPERFORMING ASSETS
Nonaccrual loans $9,893 $7,947 $8,963 $3,933 $3,189
Accruing loans 90
days past due 36 213 - 19 36
-- --- --- -- --
Total
nonperforming
loans 9,929 8,160 8,963 3,952 3,225
Foreclosed assets 2,602 2,613 1,792 1,908 1,506
----- ----- ----- ----- -----
Total
nonperforming
assets $12,531 $10,773 $10,755 $5,860 $4,731
======= ======= ======= ====== ======
As a % of loans and
foreclosed assets 0.80% 0.69% 0.71% 0.38% 0.31%
CAPITAL RATIOS
Tier 1 Risk-based 15.89% 15.41% 15.25% 15.08% 14.65%
Total Risk-based 17.04 16.49 16.27 16.09 15.62
Tier 1 Leverage 9.68 9.63 9.55 9.34 9.23
Equity to assets 11.48 11.13 11.15 11.49 10.93
Three Months
Ended Year Ended
December 31, December 31,
NONINTEREST INCOME 2008 2007 2008 2007
---- ---- ---- ----
Gain (loss) on sale of student
loans, net $(42) $97 $1,675 $1,913
Gain on securities transactions,
net 346 70 1,052 150
Trust fees 2,211 2,216 9,441 8,747
Service charges on deposits 5,591 6,153 22,597 22,920
Real estate mortgage operations 518 723 2,536 3,347
Net gain (loss) on sale of
foreclosed assets (111) 60 5 108
ATM and credit card fees 2,281 2,005 8,904 7,521
Other noninterest income 601 1,066 3,243 3,567
--- ----- ----- -----
Total Noninterest Income $11,395 $12,390 $49,453 $48,273
======= ======= ======= =======
NONINTEREST EXPENSE
Salaries and employee benefits $11,740 $12,334 $49,285 $46,944
Net occupancy expense 1,670 1,535 6,735 5,893
Equipment expense 1,941 1,815 7,547 7,220
Printing, stationery and supplies 458 459 1,891 2,004
ATM and credit card expenses 1,172 989 4,443 3,871
Audit fees 310 243 1,194 998
Legal, tax and professional fees 769 722 2,977 2,714
Correspondent bank service
charges 300 265 1,169 1,153
Advertising and public relations 655 687 2,590 2,488
Amortization of intangible assets 287 360 1,204 1,494
Other noninterest expense 3,230 3,321 12,552 12,048
----- ----- ------ ------
Total Noninterest Expense $22,532 $22,730 $91,587 $86,827
======= ======= ======= =======
TAX EQUIVALENT YIELD ADJUSTMENT $2,060 $1,422 $7,087 $5,267
====== ====== ====== ======
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended
December 31, 2008
-----------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest earning assets:
Fed funds sold $37,872 $56 0.59%
Interest bearing deposits in
nonaffiliated banks 3,647 24 2.58%
Taxable securities 928,521 10,171 4.38%
Tax exempt securities 361,686 5,778 6.39%
Loans 1,562,908 25,270 6.43%
--------- ------ ----
Total interest earning assets 2,894,634 41,299 5.68%
Noninterest earning assets 259,187
-------
Total assets $3,153,821
==========
Interest bearing liabilities:
Deposits $1,789,348 $6,219 1.38%
Fed funds purchased and other
short term borrowings 216,092 374 0.69%
------- --- ----
Total interest bearing
liabilities 2,005,440 6,593 1.31%
----- ----
Noninterest bearing
liabilities 797,758
Shareholders' equity 350,623
-------
Total liabilities and
shareholders' equity $3,153,821
==========
Net interest income and margin
(tax equivalent) $34,706 4.77%
======= ====
Year Ended
December 31, 2008
-----------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest earning assets:
Fed funds sold $76,911 $1,677 2.18%
Interest bearing deposits in
nonaffiliated banks 3,584 113 3.14%
Taxable securities 851,099 38,286 4.50%
Tax exempt securities 334,204 20,658 6.18%
Loans 1,537,027 105,508 6.86%
--------- ------- ----
Total interest earning assets 2,802,825 166,242 5.93%
Noninterest earning assets 261,204
-------
Total assets $3,064,029
==========
Interest bearing liabilities:
Deposits $1,775,158 $33,110 1.87%
Fed funds purchased and other
short term borrowings 178,721 2,149 1.20%
------- ----- ----
Total interest bearing
liabilities 1,953,879 35,259 1.80%
------ ----
Noninterest bearing
liabilities 761,879
Shareholders' equity 348,271
-------
Total liabilities and
shareholders' equity $3,064,029
==========
Net interest income and margin (tax
equivalent) $130,983 4.67%
======== ====
SOURCE First Financial Bankshares, Inc.
