First Financial Bankshares Announces First Quarter Earnings Results

ABILENE, Texas, April 17, 2014 /PRNewswire/ -- First Financial Bankshares, Inc. FFIN today reported earnings for the first quarter of 2014 of $22.34 million, up 20.23 percent compared with earnings of $18.58 million in the same quarter last year.  Basic earnings per share were $0.70 for the first quarter of 2014 compared with $0.59 in the same quarter a year ago.

All amounts for the first quarter of 2014 include the results of the Company's acquisition of Orange Savings Bank, SSB, Orange, Texas, which was effective on May 31, 2013. As of the acquisition date, Orange had total loans of $293.29 million and total deposits of $385.95 million.

Net interest income for the first quarter of 2014 increased 21.99 percent to $47.17 million compared with $38.67 million in the same period of 2013. The net interest margin, on a taxable equivalent basis, was 4.32 percent, up five basis points from 4.27 percent in the fourth quarter of 2013 and up 13 basis points from 4.19 percent in the same quarter last year. Included in interest income for the first quarter of 2014 was $595 thousand, or four basis points in net interest margin, related to discount accretion from fair value accounting related to our Orange and Huntsville acquisitions.   

The provision for loan losses was $1.69 million in the first quarter of 2014 compared with $401 thousand in the same quarter last year and $1.17 million in the fourth quarter of 2013, primarily due to continued loan growth and charge offs. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.02 percent at March 31, 2014, compared with 1.16 percent at December 31, 2013, and 1.20 percent at March 31, 2013.  Classified loans totaled $81.56 million at March 31, 2014, compared to $84.24 million at December 31, 2013, and $70.18 million at March 31, 2013. The increase in dollar amount of classified loans from the first quarter of 2013 was primarily a result of the Orange Savings Bank, SSB acquisition.

Noninterest income increased 17.51 percent in the first quarter of 2014 to $16.41 million compared with $13.96 million in the same quarter a year ago. Trust fees increased to $4.58 million in the first quarter of 2014 compared with $3.79 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $3.47 billion from $3.02 billion a year ago along with additional oil and gas activity. ATM, interchange and credit card fees increased 19.15 percent to $4.44 million compared with $3.73 million in the same quarter last year. Real estate mortgage fees decreased to $1.02 million in the first quarter of 2014 compared to $1.38 million in the same quarter last year due to the decline in the overall mortgage refinance market.  There was $452 thousand gain on sale of foreclosed assets in the first quarter of 2014 compared to a loss of $316 thousand in the same quarter a year ago.  Additionally, there was a $605 thousand gain from the settlement of a bank owned life insurance contract in the first quarter of 2014.

Noninterest expense increased in the first quarter of 2014 to $32.45 million from $27.47 million in the same quarter last year. The Company's efficiency ratio in the first quarter of 2014 was 47.57 percent compared with 48.68 percent in the same quarter last year. Included in noninterest expense in the first quarter of 2014 were salary and employee benefit costs of $17.41 million, an increase of 14.72 percent when compared to $15.18 million in the same quarter a year ago, primarily driven by an increase in personnel from the Orange acquisition and increased profit sharing expenses.

As of March 31, 2014, consolidated assets for the Company totaled $5.28 billion compared with $4.46 billion a year ago. Loans totaled $2.70 billion at quarter end compared with loans of $2.14 billion a year ago, a 26.22 percent growth. Total deposits grew 19.27 percent to $4.23 billion at March 31, 2014, compared to $3.55 billion a year ago.  Shareholders' equity rose to $616.57 million as of March 31, 2014, compared with $564.25 million at March 31, 2013. 

"We are pleased to report another solid quarter," said F. Scott Dueser, Chairman, President and CEO. "We are very pleased with our Orange acquisition which is contributing well to our bottom line. We continue to search for 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 operates 12 banking regions with 60 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Decatur, Eastland, Fort Worth, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Mauriceville, Merkel, Midlothian, Mineral Wells, Moran, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Trent, Trophy Club, Vidor, Waxahachie, Weatherford and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with seven 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.

SOURCE First Financial Bankshares, Inc.