FIRST FINANCIAL BANKSHARES, INC. 
By ABILENE, Texas, Jan. 26, 2012 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the fourth quarter of 2011 of $17.47 million, up 12.6 percent compared with earnings of $15.52 million in the same quarter last year. Basic earnings per share were $0.56 for the fourth quarter of 2011 compared with $0.49 in the same quarter a year ago.
Net interest income for the fourth quarter of 2011 increased 5.6 percent to $38.2 million compared with $36.2 million in 2010. The net interest margin, on a taxable equivalent basis, was 4.44 percent compared with 4.69 percent in the same quarter last year and 4.62 percent in the third quarter of this year.
The provision for loan losses was $1.22 million in the fourth quarter of 2011 compared with $1.99 million in the same quarter last year and $1.35 million in the third quarter of this year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.64 percent at December 31, 2011, compared with 1.60 percent at September 30, 2011, and 1.53 percent at December 31, 2010.
Noninterest income in the fourth quarter of 2011 was $12.79 million compared with $12.87 million in the same quarter a year ago. Trust fees increased to $3.15 million in the fourth quarter of 2011 compared with $2.91 million in the same quarter last year. Service charges on deposit accounts decreased to $4.31 million during the fourth quarter of 2011 compared with $4.85 million for the same quarter a year ago, due primarily to reduced customer use of overdraft services. ATM and credit card fees increased to $3.55 million during the fourth quarter of 2011 from $3.02 million in the same quarter last year.
Noninterest expense in the fourth quarter of 2011 was $26.26 million, essentially unchanged from the same quarter last year. The Company's efficiency ratio in the fourth quarter of 2011 improved to 48.33 percent compared with 50.53 percent in the same quarter last year.
For the year, net income increased 14.6 percent to $68.37 million from $59.66 million in 2010, making 2011 the 25th consecutive year of earnings increases for the Company. Basic earnings per share rose to $2.17 for the year from $1.91 in the previous year. The prior year's results included net proceeds after tax of $1.30 million from the expropriation of company-owned property in Southlake, Texas, by the Texas Department of Transportation. Excluding this extraordinary item, net income for 2010 would have been $58.36 million, or $1.87 per share.
Net interest income increased 11.62 percent for the year to $152.00 million from $136.17 million a year ago. The provision for loan losses for 2011 totaled $6.63 million compared with $8.96 million the prior year. Noninterest income was $51.44 million for the year compared with $49.48 million a year ago. Noninterest expense rose to $104.62 million in 2011 compared with $98.26 million last year primarily as a result of our Huntsville acquisition.
As of December 31, 2011, consolidated assets for the Company totaled $4.12 billion compared with $3.78 billion a year ago. Loans grew 5.7 percent and totaled $1.79 billion at year end compared with loans of $1.69 billion a year ago. Total deposits were $3.33 billion as of December 31, 2011, a 7.1 percent growth over $3.11 billion a year earlier. Shareholders' equity rose to $508.54 million as of December 31, 2011, compared with $441.69 million the prior year.
"It is a special honor to be able to announce to our shareholders that 2011 marked a quarter century of consecutive annual earnings increases for the Company," said F. Scott Dueser, Chairman, President and CEO. "This rare accomplishment could not have occurred without the dedication, hard work and expertise of our executive team, bank presidents and all our people.
"We are especially pleased with the loan and deposit growth we achieved in 2011, the successful integration of our newly acquired bank in Huntsville, Texas, and the continued growth for our Trust Company," Dueser said. "We believe First Financial's future remains bright, despite challenges from a sluggish national economy, extraordinarily low interest rates and the burden of complying with new federal regulations in the banking industry. In the year ahead, we will continue to pursue both internal growth opportunities and acquisitions, while keeping our focus on providing exceptional customer service and serving the needs of our communities."
About First Financial Bankshares
Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates 11 separately chartered banks with 52 locations in Texas. The bank subsidiaries are First Financial Bank, N.A., Abilene, Albany, Clyde, Moran and Odessa; First Financial Bank, N.A., Eastland, Ranger, Cisco and Rising Star; First Financial Bank, N.A., Cleburne, Burleson, Alvarado, Midlothian and Crowley; First Financial Bank, Hereford; First Financial Bank, Huntsville; 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, Brock and Fort Worth. 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 and follow us on Twitter at http://www.twitter.com/First_Financial.
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,
------------
2011 2010
---- ----
ASSETS:
Cash and due from banks $146,239 $124,177
Interest-bearing
deposits in banks 165,772 243,776
Fed funds sold - -
Investment securities 1,844,998 1,546,242
Loans 1,786,544 1,690,346
Allowance for loan losses (34,315) (31,106)
Net loans 1,752,229 1,659,240
Premises and equipment 76,483 70,162
Goodwill 71,865 71,865
Other intangible assets 257 659
Other assets 62,688 60,246
------ ------
Total assets $4,120,531 $3,776,367
LIABILITIES AND
SHAREHOLDERS' EQUITY:
Noninterest-bearing
deposits $1,101,576 $959,473
Interest-bearing deposits 2,233,222 2,153,828
--------- ---------
Total deposits 3,334,798 3,113,301
Short-term borrowings 207,756 178,356
Other liabilities 69,440 43,022
Shareholders' equity 508,537 441,688
------- -------
Total liabilities and
shareholders' equity $4,120,531 $3,776,367
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
INCOME STATEMENTS 2011 2010 2011 2010
---- ---- ---- ----
Interest income $39,888 $39,041 $160,021 $149,699
Interest expense 1,704 2,887 8,024 13,528
----- ----- ----- ------
Net interest income 38,184 36,154 151,997 136,171
Provision for loan losses 1,221 1,992 6,626 8,962
----- ----- ----- -----
Net interest income after
provision for loan losses 36,963 34,162 145,371 127,209
Noninterest income 12,792 12,870 51,438 49,478
Noninterest expense 26,257 26,261 104,624 98,256
------ ------ ------- ------
Net income before income taxes and
extraordinary item 23,498 20,771 92,185 78,431
Income tax expense 6,032 5,256 23,816 20,068
----- ----- ------ ------
Net income before extraordinary
item 17,466 15,515 68,369 58,363
Extraordinary item -
expropriation of property,
net of income tax - - - 1,296
--- --- --- -----
Net income $17,466 $15,515 $68,369 $59,659
PER COMMON SHARE DATA
Net income before
extraordinary item -basic $0.56 $0.49 $2.17 $1.87
Net income before
extraordinary item -
diluted 0.55 0.49 2.17 1.87
Net income - basic 0.56 0.49 2.17 1.91
Net income - diluted 0.55 0.49 2.17 1.91
Cash dividends 0.24 0.23 0.95 0.91
Book value 16.16 14.06
Market value 33.43 34.17
Shares outstanding -end
of period 31,459,635 31,413,212 31,459,635 31,413,212
Average outstanding
shares -basic 31,454,197 31,365,968 31,443,712 31,291,487
Average outstanding
shares -diluted 31,489,304 31,382,598 31,461,964 31,319,564
PERFORMANCE RATIOS
Return on average assets 1.74% 1.71% 1.78% 1.75%
Return on average equity 13.88 13.63 14.44 13.74
Net interest margin (tax
equivalent) 4.44 4.69 4.62 4.68
Efficiency ratio 48.33 50.53 48.37 49.49
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
-------------
2011 2010
---- ----
Dec. Dec.
31, Sept. 30, June 30, March 31, 31,
----- --------- -------- --------- -----
ALLOWANCE FOR LOAN
LOSSES
Balance at beginning of
period $34,301 $33,406 $32,501 $31,106 $30,013
Loans charged off (2,195) (722) (1,396) (1,010) (1,240)
Loan recoveries 988 263 377 278 341
--- --- --- --- ---
Net charge-offs (1,207) (459) (1,019) (732) (899)
Provision for loan
losses 1,221 1,354 1,924 2,127 1,992
----- ----- ----- ----- -----
Balance at end of
period $34,315 $34,301 $33,406 $32,501 $31,106
======= ======= ======= ======= =======
Allowance for loan
losses /
period-end loans 1.92% 1.98% 1.94% 1.93% 1.84%
Allowance for loan
losses /
nonperforming loans 171.0 194.3 179.6 210.6 176.3
Net charge-offs /
average loans
(annualized) 0.27 0.11 0.24 0.18 0.22
NONPERFORMING ASSETS
Nonaccrual loans $19,975 $17,598 $18,599 $15,411 $15,445
Accruing loans 90 days
past due 96 52 6 23 2,196
--- --- --- --- -----
Total nonperforming
loans 20,071 17,650 18,605 15,434 17,641
Foreclosed assets 9,464 10,254 8,778 8,872 8,309
----- ------ ----- ----- -----
Total nonperforming
assets $29,535 $27,904 $27,383 $24,306 $25,950
======= ======= ======= ======= =======
As a % of loans and
foreclosed assets 1.64% 1.60% 1.58% 1.44% 1.53%
As a % of end of period
total assets 0.72 0.71 0.71 0.63 0.69
CAPITAL RATIOS
Tier 1 Risk-based 17.49% 17.89% 17.97% 17.60% 17.01%
Total Risk-based 18.74 19.14 19.22 18.86 18.26
Tier 1 Leverage 10.33 10.45 10.22 10.03 10.28
Equity to assets 12.34 12.68 12.44 11.92 11.70
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
NONINTEREST INCOME 2011 2010 2011 2010
---- ---- ---- ----
Gain on securities
transactions, net $164 $284 $492 $363
Trust fees 3,151 2,905 12,671 10,809
Service charges on
deposits 4,313 4,852 17,689 20,104
Real estate mortgage
fees 1,013 1,241 3,943 3,812
Net gain (loss) on sale
of foreclosed assets (159) 74 (1,315) 457
Net gain (loss) on sale
of assets 43 (164) 897 (48)
ATM and credit card
fees 3,551 3,020 13,587 11,276
Other noninterest
income 716 658 3,474 2,705
Total Noninterest
Income $12,792 $12,870 $51,438 $49,478
======= ======= ======= =======
NONINTEREST EXPENSE
Salaries and employee
benefits, excluding
profit sharing $12,753 $12,686 $51,568 $48,342
Profit sharing
expense 1,153 1,332 4,688 4,299
Net occupancy expense 1,707 1,649 6,862 6,442
Equipment expense 2,008 1,935 7,800 7,476
Printing, stationery
and supplies 473 435 1,831 1,717
ATM and credit card
expenses 1,311 1,044 4,918 3,779
Audit fees 304 271 1,158 1,014
Legal, tax and
professional fees 994 1,065 4,212 3,824
FDIC Insurance premiums 517 1,047 2,646 4,000
Correspondent bank
service charges 198 204 804 767
Advertising and public
relations 1,105 832 3,817 3,120
Amortization of
intangible assets 84 146 402 609
Other noninterest
expense 3,650 3,615 13,918 12,867
----- ----- ------ ------
Total Noninterest
Expense $26,257 $26,261 $104,624 $98,256
======= ======= ======== =======
TAX EQUIVALENT YIELD
ADJUSTMENT $3,348 $2,947 $12,851 $10,899
====== ====== ======= =======
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended
December 31, 2011
-----------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest-earning
assets:
Fed funds sold $4,485 $ - 0.03%
Interest-bearing
deposits in
nonaffiliated banks 171,989 261 0.60%
Taxable securities 1,160,448 8,934 3.08%
Tax exempt
securities 620,821 8,892 5.73%
Loans 1,750,551 25,150 5.70%
--------- ------ ----
Total interest-
earning assets 3,708,294 43,237 4.63%
Noninterest-earning
assets 285,460
-------
Total assets $3,993,754
==========
Interest-bearing
liabilities:
Deposits $2,204,980 $1,653 0.30%
Fed funds purchased
and other short term
borrowings 209,758 52 0.10%
------- --- ----
Total interest-
bearing liabilities 2,414,738 1,705 0.28%
-----
Noninterest-bearing liabilities 1,079,707
Shareholders'
equity 499,309
-------
Total liabilities and
shareholders' equity $3,993,754
==========
Net interest income
and margin (tax
equivalent) $41,532 4.44%
======= ====
Year Ended
December 31, 2011
-----------------
Average Tax Equivalent Yield /
Balance Interest Rate
------- -------- ----
Interest-earning
assets:
Fed funds sold $4,495 $1 0.01%
Interest-bearing
deposits in
nonaffiliated banks 176,573 1,220 0.69%
Taxable securities 1,102,356 37,721 3.42%
Tax exempt
securities 572,895 33,975 5.93%
Loans 1,715,266 99,955 5.83%
--------- ------ ----
Total interest-
earning assets 3,571,585 172,872 4.84%
Noninterest-earning
assets 276,742
-------
Total assets $3,848,327
==========
Interest-bearing
liabilities:
Deposits $2,165,750 $7,822 0.36%
Fed funds purchased
and other short term
borrowings 196,230 202 0.10%
------- --- ----
Total interest-
bearing liabilities 2,361,980 8,024 0.34%
-----
Noninterest-bearing liabilities 1,012,942
Shareholders'
equity 473,405
-------
Total liabilities and
shareholders' equity $3,848,327
==========
Net interest income
and margin (tax
equivalent) $164,848 4.62%
======== ====
SOURCE First Financial Bankshares, Inc.
