-----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, CxjBdkrP4Q2VIXiKJsmjJ3rpm6Bx0tB5kyBqT0fAl38oE/OKqu/yRf742X5D9rYp jpAnk2YHC/oVAhGkhZ3VqA== 0000036029-05-000045.txt : 20050421 0000036029-05-000045.hdr.sgml : 20050421 20050421090732 ACCESSION NUMBER: 0000036029-05-000045 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050331 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050421 DATE AS OF CHANGE: 20050421 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: 05763299 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 apr20058k.txt FIRST FINANCIAL BANKSHARES - MARCH 31, 2005 8K 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): April 21, 2005 FIRST FINANCIAL BANKSHARES, INC. -------------------------------- (Exact Name of Registrant as Specified in its Charter) Texas 0-7674 75-0944023 -------------------------------------------- ------------------- ------------ (State or other Jurisdiction 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 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 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 March 31, 2005 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: April 21, 2005 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 FIRST QUARTER EARNINGS RESULTS ABILENE, Texas, April 20, 2005 - First Financial Bankshares, Inc. today reported earnings for the first quarter of 2005 of $12.1 million compared to $10.1 million in the same quarter the previous year. Basic earnings per share amounted to $0.78 compared with $0.65 in the same period last year. These results include the previously announced $3.0 million special distribution of proceeds to the Company from the merger of PULSE EFT Association and Discover Financial Services, Inc. Excluding the PULSE proceeds, net income for the first quarter of 2005 would have been $10.1 million, or $0.65 per share. Several factors contributed to the first quarter's results. Net interest income increased 12.1 percent to $22.9 million compared with $20.4 million in the same quarter last year. The provision for loan losses rose to $410,000 in the first quarter compared with $178,000 in the previous year's first quarter, primarily as a result of loan growth. The net gain on sale of student loans was $1.3 million versus $1.8 million in the same quarter last year, the result of fewer student loans sold. Trust fees increased 8.8 percent to $1.7 million compared with $1.6 million in the same quarter last year. Revenue from service fees increased 17.5 percent to $5.0 million compared with $4.3 million a year ago, primarily as a result of increased use of an enhanced overdraft privilege product introduced in the second quarter of 2004 and an increase in the number of new accounts. Noninterest expense increased 16.7 percent to $18.5 million from $15.9 million in the same quarter last year. Salaries and employee benefits rose 12.4 percent to $9.9 million in the first quarter of 2005 versus $8.8 million a year ago, due primarily to an increased number of total employees resulting from the recent acquisitions of banks in Granbury, Glen Rose and Clyde. The Company also incurred approximately $625,000 in the first quarter of 2005 from conversion and transition costs related to the acquisition of The Peoples State Bank in Clyde, additional audit costs from the implementation of provisions of Sarbanes-Oxley, and initial operating losses from the opening of the new Willow Park branch in late December 2004. As of March 31, 2005, consolidated assets for the Company totaled $2.41 billion compared with $2.08 billion a year ago. Loans increased 24.2 percent in the first quarter of 2005 to $1.2 billion from $965.7 million in the same quarter last year. Total deposits rose 17.1 percent to $2.1 billion from $1.8 billion a year earlier. The acquisition of banks in Granbury, Glen Rose and Clyde accounted for $132 million of the loan growth and $211 million of the deposit growth. Shareholders' equity rose to $266.6 million as of March 31, 2005, compared with $263.4 million the prior year. "Given the additional expenses we incurred from acquisition costs and Sarbanes-Oxley, we are pleased with the overall results of the first quarter," said F. Scott Dueser, President and Chief Executive Officer. "The continued growth of our franchise is very positive with the recent acquisitions of banks in Granbury, Glen Rose and Clyde, plus the opening of new branches in Willow Park and Abilene. The integration of these banks into our template is going well, and we are very pleased with the bankers who have become part of our family through these acquisitions. While we remain committed to growth, we are equally committed to working to improve our net earnings in the quarters ahead." Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company with consolidated assets totaling $2.4 billion operating ten separately chartered banks with 38 locations in Texas, a trust company and a technology operating company. These subsidiaries are First Financial Bank, N.A., Abilene, Clyde and Moran; First Financial Bank, N.A., Eastland, Ranger and Rising Star; First Financial Bank, N.A., Cleburne, Burleson and Alvarado; Hereford State Bank, Hereford; City National Bank, Mineral Wells; San Angelo National Bank, San Angelo; First Financial Bank, N.A., Southlake, Trophy Club and Keller; First Financial Bank, N.A., Stephenville, Granbury and Glen Rose; First National Bank, Sweetwater, Roby and Trent; Weatherford National Bank, Weatherford, Willow Park and Aledo; 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, 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)
March 31, ----------------------------------- 2005 2004 ----------------- --------------- ASSETS: Cash and due from banks $ 91,934 $ 88,787 Fed funds sold 50,950 15,175 Investment securities 947,346 930,430 Loans 1,199,117 965,731 Allowance for loan losses (14,409) (11,792) ----------------- --------------- Net loans 1,184,708 953,939 Premises and equipment 53,997 43,542 Goodwill and intangible assets 53,714 24,684 Other assets 25,692 21,137 ----------------- --------------- Total assets $ 2,408,341 $ 2,077,694 ================= =============== LIABILITIES AND SHAREHOLDERS' EQUITY: Noninterest-bearing deposits $ 521,453 $ 455,107 Interest-bearing deposits 1,556,481 1,319,173 ----------------- --------------- Total deposits 2,077,934 1,774,280 Fed Funds purchased and repurchase agreements 43,520 15,438 Other liabilities 20,322 24,601 Shareholders' equity 266,565 263,375 ----------------- --------------- Total liabilities and shareholders' equity $ 2,408,341 $ 2,077,694 ================= =============== Three Months Ended March 31, ----------------- --------------- INCOME STATEMENTS 2005 2004 ----------------- --------------- Interest income $ 28,534 $ 24,011 Interest expense 5,677 3,627 ----------------- --------------- Net interest income 22,857 20,384 Provision for loan losses 410 178 ----------------- --------------- Net interest income after provision for loan losses 22,447 20,206 Noninterest income 13,350 9,903 Noninterest expense 18,542 15,890 ----------------- --------------- Net income before income taxes 17,255 14,219 Income tax expense 5,179 4,126 ----------------- --------------- Net income $ 12,076 $ 10,093 ================= =============== PER COMMON SHARE DATA Net income - basic $ 0.78 $ 0.65 Net income - diluted 0.78 0.65 Cash dividends 0.34 0.31 Book value 17.18 17.01 Market value 44.63 40.19 Shares outstanding - end of period 15,516,482 15,486,322 Average outstanding shares - basic 15,513,294 15,483,756 Average outstanding shares - diluted 15,579,419 15,558,525 PERFORMANCE RATIOS Return on average assets 2.04 % 1.96 % Return on average equity 18.19 15.85 Net interest margin (tax equivalent) 4.52 4.57 Efficiency ratio 49.54 50.40
FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands, except per share data)
Quarter Ended --------------------------------------------------------------------------------- 2005 2004 ----------- ------------------------------------------------------------------- March 31, Dec. 31, Sept. 30, June 30, March 31, ----------- ------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES Balance at beginning of period $ 13,837 $ 13,680 $ 11,932 $ 11,792 $ 11,576 Loans charged off (390) (1,099) (331) (317) (241) Loan recoveries 187 185 147 149 279 ----------- ------------------------------------------------------------------- Net (charge-offs) recoveries (203) (914) (184) (168) 38 Allowance established at acquisition 365 457 1,400 - - Provision for loan losses 410 614 532 308 178 ----------- ------------------------------------------------------------------- Balance at end of period $ 14,409 $ 13,837 $ 13,680 $ 11,932 $ 11,792 =========== =================================================================== Allowance for loan losses / period-end loans 1.20 % 1.19 % 1.21 % 1.18 % 1.22 % Allowance for loan losses / nonperforming loans 462.6 324.7 295.8 690.7 767.0 Net charge-offs / average loans (annualized) 0.07 0.32 0.07 0.07 (0.02) NONPERFORMING ASSETS Nonaccrual loans $ 3,112 $ 4,142 $ 4,564 $ 1,691 $ 1,531 Accruing loans 90 days past due 3 120 60 36 6 ----------- ------------------------------------------------------------------- Total nonperforming loans 3,115 4,262 4,624 1,727 1,537 Foreclosed assets 1,138 779 514 798 961 ----------- ------------------------------------------------------------------- Total nonperforming assets $ 4,253 $ 5,041 $ 5,138 $ 2,525 $ 2,498 =========== =================================================================== As a % of loans and foreclosed assets 0.35 % 0.43 % 0.46 % 0.25 % 0.26 % CAPITAL RATIOS Tier 1 Risk-based 15.37 % 16.46 % 17.50 % 18.88 % 19.31 % Total Risk-based 16.41 17.49 18.56 19.87 20.33 Tier 1 Leverage 8.94 9.80 10.46 10.95 10.79 Equity to assets 11.07 11.47 11.98 11.98 12.68
FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands, except per share data)
Three Months Ended March 31, ------------------------------------ NONINTEREST INCOME 2005 2004 ------------------ --------------- Net gain on sale of student loans $ 1,309 $ 1,792 Net gain on sale of PULSE ownership rights 2,980 0 Net gain on securities transactions 41 18 Trust fees 1,715 1,576 Service charges on deposits 5,018 4,271 Real estate mortgage fees 412 424 Net gain on sale of real estate 12 114 ATM and credit card fees 1,123 875 Other 740 833 ------------------ --------------- Total $ 13,350 $ 9,903 ================== =============== NONINTEREST EXPENSE Salaries and employee benefits $ 9,879 $ 8,790 Net occupancy expense 1,155 999 Equipment expense 1,486 1,415 Printing, stationery and supplies 479 346 ATM and credit card expenses 680 550 Audit fees 395 180 Professional fees 589 259 Service charges from correspondents 383 384 Advertising and public relations 673 455 Amortization of intangible assets 103 34 Other 2,720 2,478 ------------------ --------------- Total $ 18,542 $ 15,890 ================== =============== SELECTED AVERAGE BALANCES 2005 2004 ------------------ --------------- Total loans $ 1,205,462 $ 973,966 Investment securities 886,400 920,916 Federal funds sold and other short term investments 71,521 8,059 ------------------ --------------- Total interest earning assets $ 2,163,383 $ 1,902,941 ================== =============== Interest-bearing deposits $ 1,539,383 $ 1,326,534 Federal funds purchased and repurchase agreements 44,421 24,804 ------------------ --------------- Total interest-bearing liabilities $ 1,583,804 $ 1,351,338 ================== =============== Shareholders' equity $ 269,193 $ 256,152 ================== =============== Total assets $ 2,401,232 $ 2,075,607 ================== ===============
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