-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FoTHp4ny38DnP01HT5K8DoPxTaE7w6HPV2t1r9HyM5SeOySVzaUvTLkC1qpjFPe/ OaBIXkeZuStGgUhP3zUW+Q== 0000036029-04-000077.txt : 20041020 0000036029-04-000077.hdr.sgml : 20041020 20041020144202 ACCESSION NUMBER: 0000036029-04-000077 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040930 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20041020 DATE AS OF CHANGE: 20041020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST FINANCIAL BANKSHARES INC CENTRAL INDEX KEY: 0000036029 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 750944023 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-07674 FILM NUMBER: 041087333 BUSINESS ADDRESS: STREET 1: 400 PINE STREET STREET 2: P.O. BOX 701 CITY: ABILENE STATE: TX ZIP: 79601 BUSINESS PHONE: 325.627.7167 MAIL ADDRESS: STREET 1: P.O. BOX 701 CITY: ABILENE STATE: TX ZIP: 79604 8-K 1 oct20048k.txt FIRST FINANCIAL BANKSHARES, INC. SEPT. 30 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): October 19, 2004 FIRST FINANCIAL BANKSHARES, INC. -------------------------------- (Exact Name of Registrant as Specified in its Charter) Texas 0-7674 75-0944023 - ----------------------- -------------------- ------------------- (State of Incorporation) (Commission File No.) (IRS Employer Identification No.) 400 Pine Street, Abilene, Texas 79601 ------------------------------------- (Address of Principal Executive Offices and Zip Code) Registrant's Telephone Number (325) 627-7155 ITEM 2.02 Results of Operations and Financial Condition Attached as an exhibit to this Form 8-K is the earnings release for the quarter ended September 30, 2004 of First Financial Bankshares, Inc. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. FIRST FINANCIAL BANKSHARES, INC. (Registrant) DATE: October 19, 2004 By: /S/ F. Scott Dueser ------------------------------------- F. SCOTT DUESER President and Chief Executive Officer EXHIBIT For immediate release For More Information: J. Bruce Hildebrand, Executive Vice President 325.627.7155 FIRST FINANCIAL BANKSHARES ANNOUNCES 8.1 PERCENT INCREASE IN THIRD QUARTER EARNINGS ABILENE, Texas, October 19, 2004 - First Financial Bankshares, Inc. today reported quarterly earnings of $9.85 million for the third quarter of 2004 as compared to $9.11 million for the same period last year, an increase of 8.1 percent. Basic earnings per share for the quarter amounted to $0.64 as compared to $0.59 for the third quarter of 2003, an 8.5 percent increase. Several factors contributed to the Company's improved earnings for the third quarter. Net interest income increased 11.4 percent to $21.30 million compared to $19.11 million in the previous year's third quarter, primarily as the result of rising interest rates and a higher volume of loans. Revenue from service fees increased 45.2 percent over the third quarter of 2003, from $3.98 million to $5.78 million, primarily as a result of an increased number of accounts and transactions. At the same time, noninterest expense increased 12.8 percent, to $16.81 million compared to $14.90 million in the same quarter of the prior year, due primarily to increased accruals for the Company's profit sharing plan caused by increased earnings. For the first nine months ended September 30, 2004, net income totaled $29.11 million as compared to $26.78 million for the first nine months of 2003, an increase of 8.7 percent. Basic earnings per share for the first nine months of 2004 were $1.88 compared to $1.73, an increase of 8.7 percent. As of September 30, 2004, consolidated assets for the Company totaled $2.206 billion, compared to $2.070 billion at the same time a year ago. Loans totaled $1.126 billion at September 30, 2004, an increase of 18.7 percent compared to loans of $948.5 million a year ago. Total deposits stood at $1.847 billion at September 30, 2004, compared to $1.788 billion the previous year. Shareholders' equity rose to $264.3 million at September 30, 2004, compared to $249.1 million the prior year. "We benefited in the third quarter from an improving economy, rising interest rates and the successful implementation of new products," said F. Scott Dueser, President and Chief Executive Officer. "Noninterest income continued to improve and loan volume showed strength, especially in the market for real estate and commercial loans. We also continued to grow our franchise during the quarter, including completion of the acquisition of Liberty National Bank in Granbury and the announcement of plans to acquire First National Bank, Glen Rose." Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company with consolidated assets totaling $2.2 billion operating eleven separately chartered banks with 29 locations in Texas, a trust company and a technology operating company. These subsidiaries are First National Bank of Abilene, Abilene; Eastland National Bank, Eastland; First Financial Bank, N.A., Cleburne; Liberty National Bank, Granbury; Hereford State Bank, Hereford; City National Bank, Mineral Wells; San Angelo National Bank, San Angelo; First Financial Bank, N.A., Southlake; Stephenville Bank & Trust Co., Stephenville; First National Bank, Sweetwater; Weatherford National Bank, Weatherford; First Financial Trust & Asset Management Company, N.A.; and First Technology Services, Inc. The Company is listed on The Nasdaq Stock Market under the trading symbol FFIN. For more information about First Financial Bankshares, access their 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)
September 30, -------------------------------- 2004 2003 --------------- -------------- ASSETS: Cash and due from banks $ 89,270 $ 112,016 Fed funds sold 7,750 30,750 Investment securities 892,982 900,585 Loans 1,125,940 948,521 Allowance for loan losses (13,680) (11,462) --------------- -------------- Net loans 1,112,260 937,059 Premises and equipment 47,602 42,844 Goodwill and intangible assets 31,824 24,769 Other assets 24,063 21,836 --------------- -------------- Total assets $ 2,205,751 $ 2,069,859 =============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY: Noninterest-bearing deposits $ 486,255 $ 446,796 Interest-bearing deposits 1,361,143 1,341,547 --------------- -------------- Total deposits 1,847,398 1,788,343 Fed Funds purchased and repurchase agreements 72,000 13,934 Other liabilities 22,021 18,493 Shareholders' equity 264,332 249,089 --------------- -------------- Total liabilities and shareholders' equity $ 2,205,751 $ 2,069,859 =============== ==============
Three Months Ended Nine Months Ended September 30, September 30, ------------------------------ -------------------------------- INCOME STATEMENTS 2004 2003 2004 2003 -------------- ------------- --------------- -------------- Interest income $ 25,391 $ 23,209 $ 73,311 $ 71,556 Interest expense 4,094 4,097 11,378 13,302 -------------- ------------- --------------- -------------- Net interest income 21,297 19,112 61,933 58,254 Provision for loan losses 532 233 1,018 969 -------------- ------------- --------------- -------------- Net interest income after provision for loan losses 20,765 18,879 60,915 57,285 Net gain on sale of student loans 82 17 2,511 1,839 Trust fees 1,578 1,499 4,667 4,412 Service charges on deposits 5,785 3,983 15,057 11,778 Real estate mortgage fees 573 984 1,548 2,483 Net gain on sale of real estate 55 702 171 728 Other noninterest income 1,778 1,671 5,152 5,191 Noninterest expense 16,812 14,905 49,200 45,531 -------------- ------------- --------------- -------------- Net income before income taxes 13,804 12,830 40,821 38,185 Income tax expense 3,951 3,716 11,708 11,400 -------------- ------------- --------------- -------------- Net income $ 9,853 $ 9,114 $ 29,113 $ 26,785 ============== ============= =============== ============== PER COMMON SHARE DATA Net income - basic $ 0.64 $ 0.59 $ 1.88 $ 1.73 Net income - diluted 0.63 0.59 1.87 1.73 Cash dividends 0.34 0.31 0.99 0.90 Book value 17.05 16.10 Market value 40.16 36.96 Shares outstanding - end of period 15,501,471 15,475,767 15,501,471 15,475,767 Average outstanding shares - basic 15,498,069 15,474,478 15,490,849 15,465,858 Average outstanding shares - diluted 15,563,627 15,542,769 15,561,233 15,523,260 PERFORMANCE RATIOS Return on average assets 1.82 % 1.78 % 1.84 % 1.78 % Return on average equity 15.14 14.69 15.13 14.70 Net interest margin (tax equivalent) 4.52 4.35 4.51 4.38 Efficiency ratio 51.86 51.27 51.90 51.99
FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands)
Quarter Ended 2004 2003 ---------------------------------------------- -------------------------------- Sept 30, June 30, Mar. 31, Dec. 31, Sept 30, ------------- -------------- ------------- --------------- -------------- ALLOWANCE FOR LOAN LOSSES Balance at beginning of period $ 11,932 $ 11,792 $ 11,576 $ 11,462 $ 11,523 Loans charged off (331) (317) (241) (401) (526) Loan recoveries 147 149 279 307 232 ------------- -------------- ------------- --------------- -------------- Net (charge-offs) recoveries (184) (168) 38 (94) (294) Allowance established at acquisition 1,400 - - - - Provision for loan losses 532 308 178 208 233 ------------- -------------- ------------- --------------- -------------- Balance at end of period $ 13,680 $ 11,932 $ 11,792 $ 11,576 $ 11,462 ============= ============== ============= =============== ============== Allowance for loan losses / period-end loans 1.21 % 1.18 % 1.22 % 1.17 % 1.21 % Allowance for loan losses / nonperforming loans 295.8 690.7 767.0 661.0 711.1 Net charge-offs / average loans (annualized) 0.07 0.07 (0.02) 0.04 0.12 NONPERFORMING ASSETS Nonaccrual loans $ 4,564 $ 1,691 $ 1,531 $ 1,690 $ 1,552 Accruing loans 90 days past due 60 36 6 61 60 ------------- -------------- ------------- --------------- -------------- Total nonperforming loans 4,624 1,727 1,537 1,751 1,612 Foreclosed assets 514 798 961 1,420 1,411 ------------- -------------- ------------- --------------- -------------- Total nonperforming assets $ 5,138 $ 2,525 $ 2,498 $ 3,171 $ 3,023 ============= ============== ============= =============== ============== As a % of loans and foreclosed assets 0.46 % 0.25 % 0.26 % 0.32 % 0.32 % CAPITAL RATIOS Tier 1 Risk-based 17.50 % 18.88 % 19.31 % 18.83 % 19.14 % Total Risk-based 18.56 19.87 20.33 19.83 20.17 Tier 1 Leverage 10.46 10.95 10.79 10.60 10.55 Equity to assets 11.98 11.98 12.68 12.02 12.03
Three Months Ended Nine Months Ended September 30, September 30, ------------------------------ -------------------------------- NONINTEREST EXPENSE 2004 2003 2004 2003 -------------- ------------- --------------- -------------- Salaries and Employee Benefits $ 9,095 $ 8,029 $ 26,758 $ 24,842 Net Occupancy Expense 1,094 1,005 3,136 2,969 Equipment Expense 1,309 1,226 4,147 3,603 Printing, Stationery and Supplies 352 360 1,061 1,034 Service Charges from Correspondents 411 368 1,193 1,127 Amortization of Intangible Assets 47 34 115 101 Other Noninterest Expense 4,504 3,883 12,790 11,855 -------------- ------------- --------------- -------------- Total Noninterest Expense $ 16,812 $ 14,905 $ 49,200 $ 45,531 ============== ============= =============== ==============
FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands)
Three Months Ended Nine Months Ended SELECTED AVERAGE BALANCES September 30, September 30, ------------------------------ -------------------------------- 2004 2003 2004 2003 -------------- ------------- --------------- -------------- Total Loans $ 1,078,233 $ 941,110 $ 1,013,608 $ 940,277 Investment Securities 898,031 883,297 914,739 852,505 Federal Funds Sold and Other Short Term Investments 13,190 41,438 20,783 50,684 -------------- ------------- --------------- -------------- Total Interest Earning Assets $ 1,989,454 $ 1,865,845 $ 1,949,130 $ 1,843,466 ============== ============= =============== ============== Interest Bearing Deposits $ 1,344,737 $ 1,317,603 $ 1,326,765 $ 1,301,925 Federal Funds Purchased and Repurchase Agreements 72,025 13,721 58,756 19,562 -------------- ------------- --------------- -------------- Total Interest Bearing Liabilities $ 1,416,762 $ 1,331,324 $ 1,385,521 $ 1,321,487 ============== ============= =============== ============== Shareholders' Equity $ 258,866 $ 246,162 $ 257,079 $ 243,687 ============== ============= =============== ============== Total Assets $ 2,156,961 $ 2,030,553 $ 2,114,578 $ 2,006,698 ============== ============= =============== ==============
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