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.