Exhibit 99.1
For immediate release | For More Information: J. Bruce Hildebrand, Executive Vice President 325.627.7155 |
FIRST FINANCIAL BANKSHARES ANNOUNCES FOURTH QUARTER EARNINGS
RESULTS AND 29th YEAR OF CONSECUTIVE EARNINGS GROWTH
ABILENE, Texas, January 28, 2016 –First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the fourth quarter of 2015 of $25.19 million, up 11.53 percent compared with earnings of $22.59 million in the same quarter last year. Basic earnings per share were $0.38 for the fourth quarter of 2015 compared with $0.35 in the same quarter a year ago.
All amounts for the fourth quarter and year ended December 31, 2015, 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 fourth quarter of 2015 increased 15.81 percent to $58.00 million compared with $50.08 million in the same quarter of 2014. The net interest margin, on a taxable equivalent basis, was 4.16 percent compared to 4.13 percent in the third quarter of 2015 and 4.08 percent in the same quarter last year. Included in interest income for the fourth quarter of 2015 was $761 thousand, or five 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 $4.18 million in the fourth quarter of 2015 compared with $2.66 million in the third quarter of 2015 and $755 thousand in the fourth quarter of 2014. The continued provision for loan losses in 2015 and 2014 reflects the overall growth in loans and continued levels of nonperforming and classified assets, including those related to the oil and gas industry. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.89 percent at December 31, 2015, compared with 0.69 percent at September 30, 2015, and 0.74 percent at December 31, 2014. Classified loans totaled $149.43 million at December 31, 2015, compared to $112.12 million at September 30, 2015, and $72.98 million at December 31, 2014. At December 31, 2015, loans with oil and gas industry exposure totaled 2.9% of gross loans, down slightly from 2014 year-end balances. These loans comprised $34.51 million of the classified loan totals and $5.40 million of the nonperforming loan totals. In addition, $1.37 million in charge offs was related to these oil and gas loans for the quarter ended December 31, 2015.
Noninterest income increased 13.26 percent in the fourth quarter of 2015 to $19.28 million compared with $17.02 million in the same quarter a year ago. Trust fees increased $92 thousand to $4.96 million in the fourth quarter of 2015 compared with $4.87 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $3.87 billion from $3.76 billion a year ago. This growth offset a $392 thousand decline in Trust oil and gas fee income in the fourth quarter of 2015 compared to the same quarter a year ago. ATM, interchange and credit card fees increased 10.01 percent to $5.65 million compared with $5.14 million in the same quarter last year due to continued growth in net new accounts and debit cards. Real estate mortgage fees increased 84.25 percent in the fourth quarter of 2015 to $3.09 million compared with $1.68 million in the same quarter a year ago, primarily resulting from a stronger mortgage market and the asset purchase of 4Trust Mortgage, Inc.
Included in noninterest income in the fourth quarter of 2015 was a loss on sale of assets totaling $809 thousand, primarily due to an impairment charge on our Orange branch office related to our pending sale/gift in 2016 to the City of Orange. This transaction will allow us to construct a smaller, state-of-the-art facility to better serve our customers.
Noninterest expense for the fourth quarter of 2015 totaled $40.34 million compared to $36.44 million in the fourth quarter of 2014. The Company’s efficiency ratio in the fourth quarter of 2015 was 48.38 percent compared with 50.58 percent in the same quarter last year. The increase in noninterest expense in the fourth quarter of 2015 was primarily a result of an increase in salary and employee benefit costs, primarily driven by the addition of employees in compliance-related areas, the addition of 4Trust Mortgage Inc. and First Bank employees and annual pay increases. In addition, legal, tax and professional fees for the fourth quarter of 2015 increased $674 thousand over the same quarter in 2014, primarily related to increased legal fees.
For the year ended December 31, 2015, net income increased 12.08 percent to $100.38 million from $89.56 million in 2014, marking 2015 as the 29th consecutive year of earnings increases for the Company. Basic earnings per share in 2015 rose to $1.55 from $1.40 in the previous year.
Net interest income increased 11.92 percent for the year to $217.54 million from $194.36 million a year ago. The provision for loan losses for 2015 totaled $9.69 million compared with $4.47 million in 2014. Noninterest income was $73.43 million in 2015 compared with $66.62 million in 2014. Noninterest expense rose to $149.46 million in 2015 compared with $137.93 million a year ago.
As of December 31, 2015, consolidated assets for the Company totaled $6.67 billion compared with $5.85 billion a year ago. Loans totaled $3.35 billion at year end compared with loans of $2.94 billion a year ago. Total deposits grew 9.26 percent to $5.19 billion at December 31, 2015, compared to $4.75 billion a year ago. Shareholders’ equity rose to $804.99 million as of December 31, 2015, compared with $681.54 million in the prior year.
“We are proud to report the 29th consecutive year of increased earnings and note that the Company surpassed $100 million in net income for the first time in its history,” said F. Scott Dueser, Chairman, President and CEO. “We owe this success to the tireless efforts of our personnel and the tremendous support of our directors and our customers. Going forward, we will continue to search for opportunities to maximize our efficiencies and increase shareholder value. In light of the current depressed oil and gas prices, we continue to be more aggressive in closely monitoring our loans to ensure that we have adequate loan loss reserves.”
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 70 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.
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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 | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 179,140 | $ | 133,340 | $ | 149,524 | $ | 142,233 | $ | 190,387 | ||||||||||
Interest-bearing deposits in banks | 89,936 | 4,268 | 18,179 | 18,275 | 54,324 | |||||||||||||||
Interest-bearing time deposits in banks | 3,495 | 4,491 | 5,456 | 9,170 | 17,002 | |||||||||||||||
Fed funds sold | 3,810 | 2,790 | 5,720 | 5,460 | 8,760 | |||||||||||||||
Investment securities | 2,734,177 | 2,737,639 | 2,729,408 | 2,689,640 | 2,416,297 | |||||||||||||||
Loans | 3,350,593 | 3,288,422 | 2,967,768 | 2,938,707 | 2,937,991 | |||||||||||||||
Allowance for loan losses | (41,877 | ) | (40,420 | ) | (38,999 | ) | (37,828 | ) | (36,824 | ) | ||||||||||
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Net loans | 3,308,716 | 3,248,002 | 2,928,769 | 2,900,879 | 2,901,167 | |||||||||||||||
Premises and equipment | 115,712 | 116,803 | 104,495 | 104,358 | 103,000 | |||||||||||||||
Goodwill | 139,971 | 139,655 | 96,632 | 94,882 | 94,882 | |||||||||||||||
Other intangible assets | 4,478 | 4,641 | 2,407 | 2,310 | 2,477 | |||||||||||||||
Other assets | 85,635 | 76,016 | 74,646 | 58,165 | 59,906 | |||||||||||||||
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Total assets | $ | 6,665,070 | $ | 6,467,645 | $ | 6,115,236 | $ | 6,025,372 | $ | 5,848,202 | ||||||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,745,952 | $ | 1,720,383 | $ | 1,574,745 | $ | 1,600,807 | $ | 1,570,330 | ||||||||||
Interest-bearing deposits | 3,444,217 | 3,376,900 | 3,152,674 | 3,236,200 | 3,179,925 | |||||||||||||||
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Total deposits | 5,190,169 | 5,097,283 | 4,727,419 | 4,837,007 | 4,750,255 | |||||||||||||||
Borrowings | 615,675 | 500,903 | 621,155 | 401,898 | 367,110 | |||||||||||||||
Other liabilities | 54,240 | 77,425 | 65,469 | 80,219 | 49,300 | |||||||||||||||
Shareholders’ equity | 804,986 | 792,034 | 701,193 | 706,248 | 681,537 | |||||||||||||||
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Total liabilities and shareholders’ equity | $ | 6,665,070 | $ | 6,467,645 | $ | 6,115,236 | $ | 6,025,372 | $ | 5,848,202 | ||||||||||
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Quarter Ended | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Dec 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
INCOME STATEMENTS | ||||||||||||||||||||
Interest income | $ | 59,047 | $ | 57,163 | $ | 53,344 | $ | 52,069 | $ | 51,121 | ||||||||||
Interest expense | 1,046 | 1,065 | 1,008 | 970 | �� | 1,039 | ||||||||||||||
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Net interest income | 58,001 | 56,098 | 52,336 | 51,099 | 50,082 | |||||||||||||||
Provision for loan losses | 4,177 | 2,664 | 1,554 | 1,290 | 755 | |||||||||||||||
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Net interest income after provision for loan losses | 53,824 | 53,434 | 50,782 | 49,809 | 49,327 | |||||||||||||||
Noninterest income | 19,280 | 20,446 | 17,809 | 15,897 | 17,023 | |||||||||||||||
Noninterest expense | 40,342 | 39,973 | 35,204 | 33,943 | 36,435 | |||||||||||||||
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Net income before income taxes | 32,762 | 33,907 | 33,387 | 31,763 | 29,915 | |||||||||||||||
Income tax expense | 7,570 | 8,021 | 8,080 | 7,766 | 7,328 | |||||||||||||||
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Net income | $ | 25,192 | $ | 25,886 | $ | 25,307 | $ | 23,997 | $ | 22,587 | ||||||||||
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PER COMMON SHARE DATA | ||||||||||||||||||||
Net income – basic | $ | 0.38 | $ | 0.40 | $ | 0.39 | $ | 0.37 | $ | 0.35 | ||||||||||
Net income – diluted | 0.38 | 0.40 | 0.39 | 0.37 | 0.35 | |||||||||||||||
Cash dividends declared | 0.16 | 0.16 | 0.16 | 0.14 | 0.14 | |||||||||||||||
Book Value | 12.20 | 12.01 | 10.93 | 11.01 | 10.63 | |||||||||||||||
Market Value | $ | 30.17 | $ | 31.78 | $ | 34.64 | $ | 27.64 | $ | 29.88 | ||||||||||
Shares outstanding – end of period | 65,990,234 | 65,942,155 | 64,156,302 | 64,142,812 | 64,089,921 | |||||||||||||||
Average outstanding shares – basic | 65,940,127 | 65,335,457 | 64,148,356 | 64,122,965 | 64,075,334 | |||||||||||||||
Average outstanding shares – diluted | 66,105,098 | 65,501,697 | 64,354,720 | 64,298,896 | 64,316,815 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 1.53 | % | 1.61 | % | 1.67 | % | 1.64 | % | 1.57 | % | ||||||||||
Return on average equity | 12.54 | 13.63 | 14.38 | 14.00 | 13.34 | |||||||||||||||
Net interest margin (tax equivalent) | 4.16 | 4.13 | 4.07 | 4.11 | 4.08 | |||||||||||||||
Efficiency ratio | 48.38 | 48.44 | 46.46 | 47.01 | 50.58 | |||||||||||||||
Year Ended Dec 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
INCOME STATEMENTS | ||||||||||||||||||||
Interest income | $ | 221,623 | $ | 198,539 | ||||||||||||||||
Interest expense | 4,088 | 4,181 | ||||||||||||||||||
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Net interest income | 217,535 | 194,358 | ||||||||||||||||||
Provision for loan losses | 9,685 | 4,465 | ||||||||||||||||||
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Net interest income after provision for loan losses | 207,850 | 189,893 | ||||||||||||||||||
Noninterest income | 73,432 | 66,624 | ||||||||||||||||||
Noninterest expense | 149,464 | 137,925 | ||||||||||||||||||
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Net income before income taxes | 131,818 | 118,592 | ||||||||||||||||||
Income tax expense | 31,437 | 29,033 | ||||||||||||||||||
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Net income | $ | 100,381 | $ | 89,559 | ||||||||||||||||
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PER COMMON SHARE DATA | ||||||||||||||||||||
Net income – basic | $ | 1.55 | $ | 1.40 | ||||||||||||||||
Net income – diluted | 1.54 | 1.39 | ||||||||||||||||||
Cash dividends declared | 0.62 | 0.55 | ||||||||||||||||||
Book Value | 12.20 | 10.63 | ||||||||||||||||||
Market Value | $ | 30.17 | $ | 29.88 | ||||||||||||||||
Shares outstanding – end of period | 65,990,234 | 64,089,921 | ||||||||||||||||||
Average outstanding shares – basic | 64,892,934 | 64,047,803 | ||||||||||||||||||
Average outstanding shares – diluted | 65,068,030 | 64,308,535 | ||||||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 1.61 | % | 1.65 | % | ||||||||||||||||
Return on average equity | 13.60 | 14.00 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.12 | 4.20 | ||||||||||||||||||
Efficiency ratio | 47.61 | 49.24 |
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 40,420 | $ | 38,999 | $ | 37,828 | $ | 36,824 | $ | 36,388 | ||||||||||
Loans charged off | (3,110 | ) | (1,477 | ) | (943 | ) | (509 | ) | (670 | ) | ||||||||||
Loan recoveries | 390 | 234 | 560 | 223 | 351 | |||||||||||||||
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Net recoveries (charge-offs) | (2,720 | ) | (1,243 | ) | (383 | ) | (286 | ) | (319 | ) | ||||||||||
Provision for loan losses | 4,177 | 2,664 | 1,554 | 1,290 | 755 | |||||||||||||||
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Balance at end of period | $ | 41,877 | $ | 40,420 | $ | 38,999 | $ | 37,828 | $ | 36,824 | ||||||||||
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Allowance for loan losses / period-end loans | 1.25 | % | 1.23 | % | 1.31 | % | 1.29 | % | 1.25 | % | ||||||||||
Allowance for loan losses / nonperforming loans | 143.70 | 183.39 | 228.20 | 196.04 | 178.06 | |||||||||||||||
Net charge-offs / average loans (annualized) | 0.33 | 0.16 | 0.05 | 0.04 | 0.04 | |||||||||||||||
SUMMARY OF LOAN CLASSIFICATION | ||||||||||||||||||||
Special Mention | $ | 40,576 | $ | 43,284 | $ | 47,409 | $ | 30,874 | $ | 19,453 | ||||||||||
Substandard | 108,813 | 68,772 | 48,317 | 46,775 | 53,388 | |||||||||||||||
Doubtful | 37 | 62 | 43 | 99 | 141 | |||||||||||||||
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Total classified loans | $ | 149,426 | $ | 112,118 | $ | 95,769 | $ | 77,748 | $ | 72,982 | ||||||||||
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NONPERFORMING ASSETS | ||||||||||||||||||||
Nonaccrual loans | $ | 28,601 | $ | 21,788 | $ | 16,854 | $ | 18,935 | $ | 20,195 | ||||||||||
Accruing troubled debt restructured loans | 199 | 204 | 172 | 177 | 226 | |||||||||||||||
Accruing loans 90 days past due | 341 | 49 | 64 | 184 | 260 | |||||||||||||||
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Total nonperforming loans | 29,141 | 22,041 | 17,090 | 19,296 | 20,681 | |||||||||||||||
Foreclosed assets | 627 | 701 | 1,045 | 1,081 | 1,035 | |||||||||||||||
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Total nonperforming assets | $ | 29,768 | $ | 22,742 | $ | 18,135 | $ | 20,377 | $ | 21,716 | ||||||||||
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As a % of loans and foreclosed assets | 0.89 | % | 0.69 | % | 0.61 | % | 0.69 | % | 0.74 | % | ||||||||||
As a % of end of period total assets | 0.45 | 0.35 | 0.30 | 0.34 | 0.37 | |||||||||||||||
CAPITAL RATIOS | ||||||||||||||||||||
Tier 1 risk-based | 15.90 | % | 15.73 | % | 16.25 | % | 16.23 | % | 16.05 | % | ||||||||||
Total risk-based | 16.97 | 16.78 | 17.36 | 17.35 | 17.16 | |||||||||||||||
Tier 1 leverage | 9.96 | 9.96 | 9.84 | 9.85 | 9.89 | |||||||||||||||
Equity to assets | 12.08 | 12.25 | 11.47 | 11.72 | 11.65 | |||||||||||||||
Quarter Ended | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Trust fees | $ | 4,961 | $ | 4,818 | $ | 4,740 | $ | 4,731 | $ | 4,869 | ||||||||||
Service charges on deposits | 4,730 | 4,653 | 4,021 | 3,768 | 4,287 | |||||||||||||||
ATM, interchange and credit card fees | 5,651 | 5,794 | 5,445 | 4,969 | 5,137 | |||||||||||||||
Real estate mortgage fees | 3,088 | 3,742 | 2,098 | 1,482 | 1,676 | |||||||||||||||
Net gain (loss) on sale of available-for-sale securities | 51 | 136 | 239 | 5 | — | |||||||||||||||
Net gain (loss) on sale of foreclosed assets | 528 | 28 | (49 | ) | 30 | 100 | ||||||||||||||
Net gain (loss) on sale of assets | (809 | ) | (11 | ) | (4 | ) | 5 | (6 | ) | |||||||||||
Other noninterest income | 1,080 | 1,286 | 1,319 | 907 | 960 | |||||||||||||||
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Total noninterest income | $ | 19,280 | $ | 20,446 | $ | 17,809 | $ | 15,897 | $ | 17,023 | ||||||||||
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NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and employee benefits, excluding profit sharing | $ | 20,647 | $ | 20,007 | $ | 17,865 | $ | 17,023 | $ | 16,302 | ||||||||||
Profit sharing expense | 1,265 | 1,641 | 1,308 | 1,242 | 1,516 | |||||||||||||||
Loss from partial settlement of pension plan | — | — | — | — | 2,909 | |||||||||||||||
Net occupancy expense | 2,674 | 3,050 | 2,394 | 2,197 | 2,296 | |||||||||||||||
Equipment expense | 3,218 | 3,114 | 2,992 | 2,899 | 2,695 | |||||||||||||||
FDIC insurance premiums | 837 | 819 | 749 | 748 | 689 | |||||||||||||||
ATM, interchange and credit card expenses | 1,540 | 1,509 | 1,609 | 1,725 | 1,875 | |||||||||||||||
Legal, tax and professional fees | 2,037 | 1,497 | 1,701 | 1,697 | 1,363 | |||||||||||||||
Audit fees | 359 | 444 | 372 | 381 | 279 | |||||||||||||||
Printing, stationery and supplies | 617 | 594 | 471 | 596 | 676 | |||||||||||||||
Amortization of intangible assets | 199 | 200 | 72 | 90 | 64 | |||||||||||||||
Advertising and public relations | 1,481 | 1,564 | 1,484 | 1,353 | 1,515 | |||||||||||||||
Correspondent bank service charges | 239 | 238 | 225 | 222 | 222 | |||||||||||||||
Other noninterest expense | 5,229 | 5,296 | 3,962 | 3,770 | 4,034 | |||||||||||||||
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Total noninterest expense | $ | 40,342 | $ | 39,973 | $ | 35,204 | $ | 33,943 | $ | 36,435 | ||||||||||
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TAX EQUIVALENT YIELD ADJUSTMENT | $ | 6,111 | $ | 5,984 | $ | 5,635 | $ | 5,213 | $ | 4,934 | ||||||||||
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Year Ended Dec. 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Trust fees | $ | 19,252 | $ | 18,766 | ||||||||||||||||
Service charges on deposits | 17,171 | 16,910 | ||||||||||||||||||
ATM, interchange and credit card fees | 21,860 | 19,427 | ||||||||||||||||||
Real estate mortgage fees | 10,409 | 6,511 | ||||||||||||||||||
Net gain (loss) on sale of available-for-sale securities | 432 | (4 | ) | |||||||||||||||||
Net gain (loss) on sale of foreclosed assets | 538 | 904 | ||||||||||||||||||
Net gain (loss) on sale of assets | (820 | ) | 10 | |||||||||||||||||
Other noninterest income | 4,590 | 4,100 | ||||||||||||||||||
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Total noninterest income | $ | 73,432 | $ | 66,624 | ||||||||||||||||
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NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and employee benefits, excluding profit sharing | $ | 75,544 | $ | 65,132 | ||||||||||||||||
Profit sharing expense | 5,455 | 5,324 | ||||||||||||||||||
Loss from partial settlement of pension plan | — | 2,909 | ||||||||||||||||||
Net occupancy expense | 10,314 | 9,100 | ||||||||||||||||||
Equipment expense | 12,222 | 10,740 | ||||||||||||||||||
FDIC insurance premiums | 3,153 | 2,725 | ||||||||||||||||||
ATM, interchange and credit card expenses | 6,384 | 6,870 | ||||||||||||||||||
Legal, tax and professional fees | 6,934 | 5,307 | ||||||||||||||||||
Audit fees | 1,555 | 1,418 | ||||||||||||||||||
Printing, stationery and supplies | 2,278 | 2,637 | ||||||||||||||||||
Amortization of intangible assets | 561 | 275 | ||||||||||||||||||
Advertising and public relations | 5,883 | 5,946 | ||||||||||||||||||
Correspondent bank service charges | 925 | 887 | ||||||||||||||||||
Other noninterest expense | 18,256 | 18,655 | ||||||||||||||||||
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|
|
| |||||||||||||||||
Total noninterest expense | $ | 149,464 | $ | 137,925 | ||||||||||||||||
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|
| |||||||||||||||||
TAX EQUIVALENT YIELD ADJUSTMENT | $ | 22,942 | $ | 19,130 | ||||||||||||||||
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|
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FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended Dec. 31, 2015 | Three Months Ended Sept. 30, 2015 | |||||||||||||||||||||||
Average Balance | Tax Equivalent Interest | Yield / Rate | Average Balance | Tax Equivalent Interest | Yield / Rate | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Fed funds sold | $ | 5,769 | $ | 4 | 0.31 | % | $ | 8,334 | $ | 8 | 0.40 | % | ||||||||||||
Interest-bearing deposits in nonaffiliated banks | 32,937 | 33 | 0.40 | 42,083 | 33 | 0.31 | ||||||||||||||||||
Taxable securities | 1,352,555 | 7,170 | 2.12 | 1,372,834 | 7,296 | 2.13 | ||||||||||||||||||
Tax exempt securities | 1,408,410 | 16,305 | 4.63 | 1,376,119 | 16,021 | 4.66 | ||||||||||||||||||
Loans | 3,309,685 | 41,646 | 4.99 | 3,161,229 | 39,789 | 4.99 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-earning assets | 6,109,356 | $ | 65,158 | 4.23 | % | 5,960,599 | $ | 63,147 | 4.20 | % | ||||||||||||||
Noninterest-earning assets | 427,018 | 402,174 | ||||||||||||||||||||||
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|
|
| |||||||||||||||||||||
Total assets | $ | 6,536,374 | $ | 6,362,773 | ||||||||||||||||||||
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| |||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits | $ | 3,391,514 | $ | 882 | 0.10 | % | $ | 3,295,411 | $ | 932 | 0.11 | % | ||||||||||||
Fed funds purchased and other borrowings | 575,861 | 164 | 0.11 | 572,431 | 133 | 0.09 | ||||||||||||||||||
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|
|
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|
|
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|
| |||||||||||||
Total interest-bearing liabilities | 3,967,375 | $ | 1,046 | 0.10 | % | 3,867,842 | $ | 1,065 | 0.11 | % | ||||||||||||||
Noninterest-bearing liabilities | 1,772,060 | 1,741,319 | ||||||||||||||||||||||
Shareholders’ equity | 796,939 | 753,612 | ||||||||||||||||||||||
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|
|
| |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,536,374 | $ | 6,362,773 | ||||||||||||||||||||
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|
| |||||||||||||||||||||
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|
|
| |||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 64,112 | 4.16 | % | $ | 62,082 | 4.13 | % | ||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||||||
Three Months Ended June 30, 2015 | Three Months Ended Mar. 31, 2015 | |||||||||||||||||||||||
Average Balance | Tax Equivalent Interest | Yield / Rate | Average Balance | Tax Equivalent Interest | Yield / Rate | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Fed funds sold | $ | 10,391 | $ | 10 | 0.37 | % | $ | 6,767 | $ | 5 | 0.27 | % | ||||||||||||
Interest-bearing deposits in nonaffiliated banks | 34,633 | 40 | 0.47 | 89,798 | 75 | 0.34 | ||||||||||||||||||
Taxable securities | 1,425,744 | 7,398 | 2.08 | 1,333,073 | 7,808 | 2.34 | ||||||||||||||||||
Tax exempt securities | 1,294,809 | 15,108 | 4.67 | 1,191,772 | 13,973 | 4.69 | ||||||||||||||||||
Loans | 2,954,502 | 36,423 | 4.94 | 2,931,805 | 35,420 | 4.90 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-earning assets | 5,720,079 | $ | 58,979 | 4.14 | % | 5,553,215 | $ | 57,281 | 4.18 | % | ||||||||||||||
Noninterest-earning assets | 351,223 | 363,211 | ||||||||||||||||||||||
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|
|
| |||||||||||||||||||||
Total assets | $ | 6,071,302 | $ | 5,916,426 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits | $ | 3,177,999 | $ | 902 | 0.11 | % | $ | 3,221,552 | $ | 927 | 0.12 | % | ||||||||||||
Fed funds purchased and other borrowings | 558,367 | 106 | 0.08 | 388,213 | 42 | 0.04 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 3,736,366 | $ | 1,008 | 0.11 | % | 3,609,765 | $ | 969 | 0.11 | % | ||||||||||||||
Noninterest-bearing liabilities | 1,628,847 | 1,611,430 | ||||||||||||||||||||||
Shareholders’ equity | 706,089 | 695,231 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,071,302 | $ | 5,916,426 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
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|
|
| |||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 57,971 | 4.07 | % | $ | 56,312 | 4.11 | % | ||||||||||||||||
|
|
|
|
|
|
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| |||||||||||||||||
Three Months Ended Dec. 31, 2014 | ||||||||||||||||||||||||
Average Balance | Tax Equivalent Interest | Yield / Rate | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Fed funds sold | $ | 5,975 | $ | 4 | 0.30 | % | ||||||||||||||||||
Interest-bearing deposits in nonaffiliated banks | 118,244 | 110 | 0.37 | |||||||||||||||||||||
Taxable securities | 1,246,632 | 7,370 | 2.36 | |||||||||||||||||||||
Tax exempt securities | 1,091,723 | 13,078 | 4.79 | |||||||||||||||||||||
Loans | 2,889,951 | 35,492 | 4.87 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total interest-earning assets | 5,352,525 | $ | 56,054 | 4.15 | % | |||||||||||||||||||
Noninterest-earning assets | 358,395 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Total assets | $ | 5,710,920 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits | $ | 3,043,612 | $ | 989 | 0.13 | % | ||||||||||||||||||
Fed funds purchased and other borrowings | 373,785 | 49 | 0.05 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing liabilities | 3,417,397 | $ | 1,038 | 0.12 | % | |||||||||||||||||||
Noninterest-bearing liabilities | 1,621,819 | |||||||||||||||||||||||
Shareholders’ equity | 671,704 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,710,920 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 55,016 | 4.08 | % | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Year Ended Dec. 31, 2015 | Year Ended Dec. 31, 2014 | |||||||||||||||||||||||
Average Balance | Tax Equivalent Interest | Yield / Rate | Average Balance | Tax Equivalent Interest | Yield / Rate | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Fed funds sold | $ | 7,814 | $ | 27 | 0.35 | % | $ | 8,412 | $ | 31 | 0.37 | % | ||||||||||||
Interest-bearing deposits in nonaffiliated banks | 49,686 | 181 | 0.36 | 66,681 | 339 | 0.51 | ||||||||||||||||||
Taxable securities | 1,371,110 | 29,673 | 2.16 | 1,173,725 | 28,402 | 2.42 | ||||||||||||||||||
Tax exempt securities | 1,318,531 | 61,407 | 4.66 | 1,045,304 | 50,657 | 4.85 | ||||||||||||||||||
Loans | 3,090,538 | 153,277 | 4.96 | 2,786,011 | 138,240 | 4.96 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-earning assets | 5,837,679 | $ | 244,565 | 4.19 | % | 5,080,133 | $ | 217,669 | 4.28 | % | ||||||||||||||
Noninterest-earning assets | 386,125 | 348,450 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 6,223,804 | $ | 5,428,583 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits | $ | 3,272,150 | $ | 3,642 | 0.11 | % | $ | 2,905,734 | $ | 3,883 | 0.13 | % | ||||||||||||
Fed funds purchased and other borrowings | 524,365 | 446 | 0.08 | 397,738 | 298 | 0.07 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 3,796,515 | $ | 4,088 | 0.11 | % | 3,303,472 | $ | 4,181 | 0.13 | % | ||||||||||||||
Noninterest-bearing liabilities | 1,689,000 | 1,485,367 | ||||||||||||||||||||||
Shareholders’ equity | 738,289 | 639,744 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,223,804 | $ | 5,428,583 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 240,477 | 4.12 | % | $ | 213,488 | 4.20 | % | ||||||||||||||||
|
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|