First Financial Bankshares Announces First Quarter Earnings Results

ABILENE, Texas, April 21, 2016 /PRNewswire/ -- First Financial Bankshares, Inc. FFIN today reported earnings for the first quarter of 2016 of $25.70 million, up 7.08 percent compared with earnings of $24.00 million in the same quarter last year.  Basic earnings per share were $0.39 for the first quarter of 2016 compared with $0.37 in the same quarter a year ago.

All amounts for the first quarter ended March 31, 2016, include the results of the asset purchase of 4Trust Mortgage, Inc. on May 31, 2015, and the acquisition of First Bank, N.A., Conroe, Texas, on July 31, 2015. As of the acquisition date, First Bank had total gross loans of $252.46 million and total deposits of $356.75 million.

Net interest income for the first quarter of 2016 increased 11.59 percent to $57.02 million compared with $51.10 million in the same quarter of 2015. The net interest margin, on a taxable equivalent basis, was 4.15 percent for the first quarter of 2016 compared to 4.16 percent in the fourth quarter of 2015 and 4.11 percent in the first quarter of 2015. Included in interest income for the first quarter of 2016 was $720 thousand, or four basis points in net interest margin, related to discount accretion from fair value accounting related to the Conroe and Orange acquisitions.  

The provision for loan losses was $2.33 million in the first quarter of 2016 compared with $4.18 million in the fourth quarter of 2015 and $1.29 million in the first quarter of 2015. The continued provision for loan losses in 2016 and 2015 reflects the continued levels of nonperforming and classified assets, gross charge-offs, as well as the economic effects related to the oil and gas industry. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.88 percent at March 31, 2016, compared with 0.89 percent at December 31, 2015, and 0.69 percent at March 31, 2015. Classified loans totaled $142.14 million at March 31, 2016, compared to $149.43 million at December 31, 2015, and $77.75 million at March 31, 2015. Included in recoveries for the quarter ended March 31, 2016, was a $1.2 million recovery of a previously charge-off commercial real estate loan.

At March 31, 2016, loans with oil and gas industry exposure totaled 2.79% of gross loans. These loans comprised $36.40 million of the classified loan totals and $4.92 million of the nonperforming loan totals. In addition, $517 thousand in net charge-offs was related to these oil and gas loans for the quarter ended March 31, 2016. At March 31, 2016, the Company's allowance for loan loss reserve specific to its total oil and gas loan portfolio totaled 7.37% of total oil and gas loans.

Noninterest income increased 24.68 percent in the first quarter of 2016 to $19.82 million compared with $15.90 million in the same quarter a year ago. Trust fees decreased $76 thousand to $4.66 million in the first quarter of 2016 compared with $4.73 million in the same quarter last year due to a $257 thousand decline in Trust oil and gas fee income when compared to the same quarter a year ago. This decline was mostly offset by an increase in the fair value of Trust assets managed to $4.01 billion from $3.85 billion a year ago. Service charges on deposits and ATM, interchange and credit card fees increased 17.12 and 14.31 percent, respectively, to $4.41 million and $5.68 million compared with $3.77 million and $4.97 million, respectively, in the same quarter last year due to the acquisition of First Bank and the continued growth in net new accounts and debit cards. Real estate mortgage fees increased 111.81 percent in the first quarter of 2016 to $3.14 million compared with $1.48 million in the same quarter a year ago, primarily resulting from additional loan origination production from the 4Trust Mortgage, Inc. asset purchase.

Noninterest expense for the first quarter of 2016 totaled $41.08 million compared to $33.94 million in the first quarter of 2015. The Company's efficiency ratio in the first quarter of 2016 was 49.52 percent compared with 47.01 percent in the same quarter last year. The increase in noninterest expense in the first quarter of 2016 was primarily a result of an increase in salary and employee benefit costs driven by the addition of 4Trust Mortgage Inc. and First Bank employees and annual pay increases.

As of March 31, 2016, consolidated assets for the Company totaled $6.53 billion compared to $6.67 billion at December 31, 2015 and $6.03 billion at March 31, 2015. Loans totaled $3.30 billion at quarter end compared with loans of $3.35 billion at December 31, 2015 and $2.94 billion at March 31, 2015. Deposits totaled $5.06 billion at March 31, 2016, compared to $5.19 billion at December 31, 2015 and $4.84 billion at March 31, 2015. The decline in deposits from December 31, 2015 to March 31, 2016 was primarily due to an unusually large increase in correspondent bank balances at December 31, 2015. Shareholders' equity rose to $838.61 million as of March 31, 2016, compared with $804.99 million at December 31, 2015 and $706.25 million at March 31, 2015. 

"We are pleased to report another successful quarter for the Company, especially with continued low interest rates and depressed oil and gas prices," said F. Scott Dueser, Chairman, President and CEO. "Going forward, we will remain diligent in our search for opportunities to maximize our efficiencies while we continue to seek additional acquisition opportunities for our company that will fit our culture and bring additional earnings and increase shareholder value."

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 69 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, Fort Worth, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with nine 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




2016



2015


ASSETS



Mar. 31, 



 Dec. 31,  



 Sept. 30,  



 June 30,  



Mar. 31, 


Cash and due from banks

$

139,995


$

179,140


$

133,340


$

149,524


$

142,233


Interest-bearing deposits in banks


22,993



89,936



4,268



18,179



18,275


Interest-bearing time deposits in banks


2,427



3,495



4,491



5,456



9,170


Fed funds sold



2,660



3,810



2,790



5,720



5,460


Investment securities


2,763,185



2,734,177



2,737,639



2,729,408



2,689,640


Loans



3,299,207



3,350,593



3,288,422



2,967,768



2,938,707



Allowance for loan losses


(44,072)



(41,877)



(40,420)



(38,999)



(37,828)


Net loans



3,255,135



3,308,716



3,248,002



2,928,769



2,900,879


Premises and equipment


118,208



115,712



116,803



104,495



104,358


Goodwill



139,971



139,971



139,655



96,632



94,882


Other intangible assets


4,198



4,478



4,641



2,407



2,310


Other assets



76,413



85,635



76,016



74,646



58,165



Total assets

$

6,525,185


$

6,665,070


$

6,467,645


$

6,115,236


$

6,025,372



















LIABILITIES AND SHAREHOLDERS'  EQUITY
















Noninterest-bearing deposits

$

1,654,271


$

1,745,952


$

1,720,383


$

1,574,745


$

1,600,807


Interest-bearing deposits


3,409,536



3,444,217



3,376,900



3,152,674



3,236,200



Total deposits


5,063,807



5,190,169



5,097,283



4,727,419



4,837,007


Borrowings



525,340



615,675



500,903



621,155



401,898


Other liabilities



97,430



54,240



77,425



65,469



80,219


Shareholders' equity


838,608



804,986



792,034



701,193



706,248



Total liabilities and shareholders' equity

$

6,525,185


$

6,665,070


$

6,467,645


$

6,115,236


$

6,025,372





















Quarter Ended




2016



2015


INCOME STATEMENTS


Mar. 31, 



 Dec 31,  



 Sept. 30,  



 June 30,  



Mar. 31, 


Interest income


$

58,335


$

59,047


$

57,163


$

53,344


$

52,069


Interest expense


1,312



1,046



1,065



1,008



970


Net interest income


57,023



58,001



56,098



52,336



51,099


Provision for loan losses


2,328



4,177



2,664



1,554



1,290


Net interest income after provision for loan losses


54,695



53,824



53,434



50,782



49,809


Noninterest income


19,821



19,280



20,446



17,809



15,897


Noninterest expense


41,081



40,342



39,973



35,204



33,943



Net income before income taxes


33,435



32,762



33,907



33,387



31,763


Income tax expense


7,739



7,570



8,021



8,080



7,766



Net income

$

25,696


$

25,192


$

25,886


$

25,307


$

23,997



















PER COMMON SHARE DATA 
















Net income - basic

$

0.39


$

0.38


$

0.40


$

0.39


$

0.37


Net income - diluted


0.39



0.38



0.40



0.39



0.37


Cash dividends declared


0.16



0.16



0.16



0.16



0.14


Book Value



12.70



12.20



12.01



10.93



11.01


Market Value


$

29.58


$

30.17


$

31.78


$

34.64


$

27.64


Shares outstanding - end of period


66,043,442



65,990,234



65,942,155



64,156,302



64,142,812


Average outstanding shares - basic


65,974,559



65,940,127



65,335,457



64,148,356



64,122,965


Average outstanding shares - diluted


66,118,998



66,105,098



65,501,697



64,354,720



64,298,896



















PERFORMANCE RATIOS
















Return on average assets


1.58

%


1.53

%


1.61

%

1.67

%


1.64

%

Return on average equity


12.55



12.54



13.63



14.38



14.00


Net interest margin (tax equivalent)


4.15



4.16



4.13



4.07



4.11


Efficiency ratio



49.52



48.38



48.44



46.46



47.01


 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)




















Quarter Ended




2016



2015


ALLOWANCE FOR LOAN LOSSES


Mar. 31, 



Dec. 31, 



 Sept. 30,  



June 30, 



Mar. 31, 


Balance at beginning of period

$

41,877


$

40,420


$

38,999


$

37,828


$

36,824


Loans charged off


(1,782)



(3,110)



(1,477)



(943)



(509)


Loan recoveries



1,649



390



234



560



223


Net recoveries (charge-offs)


(133)



(2,720)



(1,243)



(383)



(286)


Provision for loan losses


2,328



4,177



2,664



1,554



1,290


Balance at end of period

$

44,072


$

41,877


$

40,420


$

38,999


$

37,828



















Allowance for loan losses / period-end loans


1.34

%


1.25

%


1.23

%


1.31

%


1.29

%

Allowance for loan losses / nonperforming loans


156.24



143.70



183.39



228.20



196.04


Net charge-offs / average loans (annualized)


0.02



0.33



0.16



0.05



0.04



















SUMMARY OF LOAN CLASSIFICATION
















Special Mention


$

31,486


$

40,576


$

43,284


$

47,409


$

30,874


Substandard



110,657



108,813



68,772



48,317



46,775


Doubtful



-



37



62



43



99



Total classified loans

$

142,143


$

149,426


$

112,118


$

95,769


$

77,748



















NONPERFORMING ASSETS
















Nonaccrual loans

$

27,175


$

28,601


$

21,788


$

16,854


$

18,935


Accruing troubled debt restructured loans


973



199



204



172



177


Accruing loans 90 days past due


59



341



49



64



184



Total nonperforming loans


28,207



29,141



22,041



17,090



19,296


Foreclosed assets


821



627



701



1,045



1,081



Total nonperforming assets

$

29,028


$

29,768


$

22,742


$

18,135


$

20,377



















As a % of loans and foreclosed assets


0.88

%


0.89

%


0.69

%


0.61

%


0.69

%

As a % of end of period total assets


0.44



0.45



0.35



0.30



0.34



















OIL AND GAS PORTFOLIO INFORMATION
















Oil and gas loans

$

92,058


$

96,712


$

92,382


$

82,498


$

95,044


Oil and gas loans as a % of total loans


2.79

%


2.89

%


2.81

%

2.78

%


3.23

%

Classified oil and gas loans


36,402



34,506



30,028



26,016



6,654


Nonaccrual oil and gas loans


4,917



5,404



2,589



481



44


Net charge-offs for oil and gas loans


517



1,370



567



-



10


Allowance for oil and gas loans as a % of oil and gas loans


7.37

%


6.35

%


6.48

%

5.63

%


3.40

%


















CAPITAL RATIOS
















Common equity Tier 1 capital ratio


16.46

%


15.90

%


15.73

%


16.25

%


16.23

%

Tier 1 capital ratio


16.46



15.90



15.73



16.25



16.23


Total capital ratio


17.60



16.97



16.78



17.36



17.35


Tier 1 leverage



10.23



9.96



9.96



9.84



9.85


Equity to assets



12.85



12.08



12.25



11.47



11.72






































Quarter Ended




2016



2015


NONINTEREST INCOME


Mar. 31, 



Dec. 31, 



 Sept. 30,  



 June 30,  



Mar. 31, 


Trust fees


$

4,655


$

4,961


$

4,818


$

4,740


$

4,731


Service charges on deposits


4,413



4,730



4,653



4,021



3,768


ATM, interchange and credit card fees


5,680



5,651



5,794



5,445



4,969


Real estate mortgage fees


3,139



3,088



3,742



2,098



1,482


Net gain (loss) on sale of available-for-sale securities


2



51



136



239



5


Net gain (loss) on sale of foreclosed assets


76



528



28



(49)



30


Net gain (loss) on sale of assets


513



(809)



(11)



(4)



5


Interest on loan recoveries


633



216



323



403



108


Other noninterest income


710



864



963



916



799



Total noninterest income

$

19,821


$

19,280


$

20,446


$

17,809


$

15,897



















NONINTEREST EXPENSE
















Salaries and employee benefits, excluding profit sharing

$

21,545


$

20,647


$

20,007


$

17,865


$

17,023


Profit sharing expense


1,045



1,265



1,641



1,308



1,242


Net occupancy expense


2,631



2,674



3,050



2,394



2,197


Equipment expense


3,380



3,218



3,114



2,992



2,899


FDIC insurance premiums


824



837



819



749



748


ATM, interchange and credit card expenses


1,687



1,540



1,509



1,609



1,725


Legal, tax and professional fees


2,209



2,037



1,497



1,701



1,697


Audit fees



449



359



444



372



381


Printing, stationery and supplies


503



617



594



471



596


Amortization of intangible assets


199



199



200



72



90


Advertising and public relations


1,444



1,481



1,564



1,484



1,353


Correspondent bank service charges


247



239



238



225



222


Other noninterest expense


4,918



5,229



5,296



3,962



3,770



Total noninterest expense

$

41,081


$

40,342


$

39,973


$

35,204


$

33,943



















TAX EQUIVALENT YIELD ADJUSTMENT

$

6,115


$

6,111


$

5,984


$

5,635


$

5,213


 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


























Three Months Ended




Three Months Ended



Mar. 31, 2016




Dec. 31, 2015




Average



Tax Equivalent



Yield /






Average



Tax Equivalent



Yield /





Balance



Interest



Rate






Balance



Interest



Rate


Interest-earning assets:






















  Fed funds sold

$

7,534


$

9



0.50

%



$

5,769


$

4



0.31

%

  Interest-bearing deposits in nonaffiliated banks


40,239



51



0.51






32,937



33



0.40


  Taxable securities


1,323,606



7,262



2.19






1,352,555



7,170



2.12


  Tax exempt securities


1,428,178



16,326



4.57






1,408,410



16,305



4.63


  Loans



3,312,664



40,802



4.95






3,309,685



41,646



4.99


Total interest-earning assets


6,112,221


$

64,450



4.24

%




6,109,356


$

65,158



4.23

%

Noninterest-earning assets


432,862












427,018









Total assets

$

6,545,083











$

6,536,374































Interest-bearing liabilities:






















  Deposits

$

3,445,622


$

1,052



0.12

%



$

3,391,514


$

882



0.10

%

  Fed funds purchased and other borrowings


562,569



260



0.19






575,861



164



0.11


Total interest-bearing liabilities


4,008,191


$

1,312



0.13

%




3,967,375


$

1,046



0.10

%

Noninterest-bearing liabilities


1,713,122












1,772,060









Shareholders' equity


823,770












796,939









Total liabilities and shareholders' equity

$

6,545,083











$

6,536,374































Net interest income and margin (tax equivalent)




$

63,138



4.15

%






$

64,112



4.16

%


























Three Months Ended




Three Months Ended



Sept. 30, 2015




June 30, 2015




Average



Tax Equivalent



Yield /






Average



Tax Equivalent



Yield /





Balance



Interest



Rate






Balance



Interest



Rate


Interest-earning assets:






















  Fed funds sold

$

8,334


$

8



0.40

%



$

10,391


$

10



0.37

%

  Interest-bearing deposits in nonaffiliated banks


42,083



33



0.31






34,633



40



0.47


  Taxable securities


1,372,834



7,296



2.13






1,425,744



7,398



2.08


  Tax exempt securities


1,376,119



16,021



4.66






1,294,809



15,108



4.67


  Loans


3,161,229



39,789



4.99






2,954,502



36,423



4.94


Total interest-earning assets


5,960,599


$

63,147



4.20

%




5,720,079


$

58,979



4.14

%

Noninterest-earning assets


402,174












351,223









Total assets

$

6,362,773











$

6,071,302































Interest-bearing liabilities:






















  Deposits

$

3,295,411


$

932



0.11

%



$

3,177,999


$

902



0.11

%

  Fed funds purchased and other borrowings


572,431



133



0.09






558,367



106



0.08


Total interest-bearing liabilities


3,867,842


$

1,065



0.11

%




3,736,366


$

1,008



0.11

%

Noninterest-bearing liabilities


1,741,319












1,628,847









Shareholders' equity


753,612












706,089









Total liabilities and shareholders' equity

$

6,362,773











$

6,071,302































Net interest income and margin (tax equivalent)




$

62,082



4.13

%






$

57,971



4.07

%


























Three Months Ended















Mar. 31, 2015
















Average



Tax Equivalent



Yield /

















Balance



Interest



Rate














Interest-earning assets:






















  Fed funds sold

$

6,767


$

5



0.27

%












  Interest-bearing deposits in nonaffiliated banks


89,798



75



0.34














  Taxable securities


1,333,073



7,808



2.34














  Tax exempt securities


1,191,772



13,973



4.69














  Loans


2,931,805



35,420



4.90














Total interest-earning assets


5,553,215


$

57,281



4.18

%












Noninterest-earning assets


363,211





















Total assets

$

5,916,426











































Interest-bearing liabilities:






















  Deposits

$

3,221,552


$

927



0.12

%












  Fed funds purchased and other borrowings


388,213



42



0.04














Total interest-bearing liabilities


3,609,765


$

969



0.11

%












Noninterest-bearing liabilities


1,611,430





















Shareholders' equity


695,231





















Total liabilities and shareholders' equity

$

5,916,426











































Net interest income and margin (tax equivalent)




$

56,312



4.11

%












 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/first-financial-bankshares-announces-first-quarter-earnings-results-300255559.html

SOURCE First Financial Bankshares, Inc.

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