Exhibit 99.1
For immediate release | For More Information: | |||
J. Bruce Hildebrand, Executive Vice President | ||||
325.627.7155 |
FIRST FINANCIAL BANKSHARES ANNOUNCES
SECOND QUARTER 2016 EARNINGS RESULTS
ABILENE, Texas, July 21, 2016 –First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2016 of $26.81 million, up 5.94 percent when compared with earnings of $25.31 million in the same quarter last year. Basic earnings per share were $0.41 for the second quarter of 2016 compared with $0.39 in the same quarter a year ago.
All amounts for the second quarter ended June 30, 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 second quarter of 2016 increased 8.05 percent to $56.55 million compared with $52.34 million in the same period of 2015. The net interest margin, on a taxable equivalent basis, was 4.12 percent compared to 4.15 percent in the first quarter of 2016 and 4.07 percent in the second quarter of 2015. Included in interest income for the second quarter of 2016 was $621 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 $2.06 million in the second quarter of 2016 compared with $2.33 million in the first quarter of 2016 and $1.55 million in the second 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 1.22 percent at June 30, 2016, compared with 0.88 percent at March 31, 2016, and 0.61 percent at June 30, 2015. The increase in the Company’s nonperforming assets as a percentage of loans and foreclosed assets ratio at June 30, 2016, primarily resulted from the addition of one larger commercial credit to the Company’s quarter-end nonaccrual balances. Classified loans totaled $132.67 million at June 30, 2016, compared to $142.14 million at March 31, 2016, and $95.77 million at June 30, 2015.
At June 30, 2016, loans with oil and gas industry exposure totaled 2.65% of gross loans. These loans comprised $32.67 million of the classified loan totals and $5.76 million of the nonperforming loan totals. In addition, $419 thousand in net charge-offs was related to these oil and gas loans for the quarter ended June 30, 2016. At June 30, 2016, the Company’s allowance for loan loss reserve specific to its total oil and gas loan portfolio totaled 6.57% of total oil and gas loans.
Noninterest income increased 20.38 percent in the second quarter of 2016 to $21.44 million compared with $17.81 million in the same quarter a year ago. Trust fees decreased $14 thousand to $4.73 million in the second quarter of 2016 compared with $4.74 million in the same quarter last year due to a $113 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 $4.11 billion from $3.97 billion a year ago. Service charges on deposits and ATM, interchange and credit card fees increased 9.52 and 7.25 percent, respectively, to $4.40 million and $5.84 million compared with $4.02 million and $5.45 million, respectively, in the same quarter last year primarily due to the acquisition of First Bank and
the continued growth in net new accounts and debit cards. Real estate mortgage fees increased 91.28 percent in the second quarter of 2016 to $4.01 million compared with $2.10 million in the same quarter a year ago, primarily resulting from additional loan origination production from the 4Trust Mortgage, Inc. asset purchase. Also included in noninterest income during the second quarter of 2016 was a gain on sale of securities of $912 thousand.
Noninterest expense for the second quarter of 2016 totaled $40.76 million compared to $35.20 million in the second quarter of 2015. The Company’s efficiency ratio in the second quarter of 2016 was 48.43 percent compared with 46.46 percent in the same quarter last year. The increase in noninterest expense in the second 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.
For the first half of 2016, net income increased 6.49 percent to $52.51 million from $49.30 million for the same period a year ago. Basic earnings per share rose to $0.80 in the first half of 2016 from $0.77 in the same period last year. Net interest income increased 9.80 percent to $113.57 million in the first half of 2016 from $103.44 million in the same period a year ago. The provision for loan losses totaled $4.39 million compared with $2.84 million in the first half of the previous year. Noninterest income was $41.26 million in the first half of 2016 compared with $33.71 million a year ago. Noninterest expense rose to $81.84 million in the first half of 2016 compared with $69.15 million during the same period last year.
As of June 30, 2016, consolidated assets for the Company totaled $6.61 billion compared to $6.53 billion at March 31, 2016, and $6.12 billion at June 30, 2015. Loans totaled $3.31 billion at June 30, 2016, compared with loans of $3.30 billion at March 31, 2016, and $2.97 billion at June 30, 2015. Deposits totaled $5.06 billion at June 30, 2016, compared to $5.06 billion at March 31, 2016, and $4.73 billion at June 30, 2015. Shareholders’ equity rose to $866.16 million as of June 30, 2016, compared with $838.61 million at March 31, 2016, and $701.19 million at June 30, 2015.
“We are pleased to report another quarter of increased earnings for our company despite the low rate environment and continued low commodity prices,” said F. Scott Dueser, Chairman, President and CEO. “We are also excited about the recent opening of our new state-of-the-art facility in Fort Worth. 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.”
“In the first half of this year, we experienced record rainfalls that produced flooding in some of our markets,” added Dueser. “In West Texas we were pleased that the weather patterns broke a 10-year drought and filled our lakes; however, we believe the rains had a negative effect on our loan growth and related deposit growth, specifically in the areas of agriculture, interim construction loans and projects that could not be started or advanced due to weather conditions. The cash flow in some of our footprint has also been affected by lower cotton, cattle and oil and gas prices, which has also hurt deposit growth.”
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 | |||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 135,092 | $ | 139,995 | $ | 179,140 | $ | 133,340 | $ | 149,524 | ||||||||||
Interest-bearing deposits in banks | 67,746 | 22,993 | 89,936 | 4,268 | 18,179 | |||||||||||||||
Interest-bearing time deposits in banks | 2,427 | 2,427 | 3,495 | 4,491 | 5,456 | |||||||||||||||
Fed funds sold | 2,960 | 2,660 | 3,810 | 2,790 | 5,720 | |||||||||||||||
Investment securities | 2,795,493 | 2,763,185 | 2,734,177 | 2,737,639 | 2,729,408 | |||||||||||||||
Loans | 3,309,388 | 3,299,207 | 3,350,593 | 3,288,422 | 2,967,768 | |||||||||||||||
Allowance for loan losses | (45,060 | ) | (44,072 | ) | (41,877 | ) | (40,420 | ) | (38,999 | ) | ||||||||||
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Net loans | 3,264,328 | 3,255,135 | 3,308,716 | 3,248,002 | 2,928,769 | |||||||||||||||
Premises and equipment | 122,326 | 118,208 | 115,712 | 116,803 | 104,495 | |||||||||||||||
Goodwill | 139,971 | 139,971 | 139,971 | 139,655 | 96,632 | |||||||||||||||
Other intangible assets | 3,959 | 4,198 | 4,478 | 4,641 | 2,407 | |||||||||||||||
Other assets | 80,688 | 76,413 | 85,635 | 76,016 | 74,646 | |||||||||||||||
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Total assets | $ | 6,614,990 | $ | 6,525,185 | $ | 6,665,070 | $ | 6,467,645 | $ | 6,115,236 | ||||||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,644,812 | $ | 1,654,271 | $ | 1,745,952 | $ | 1,720,383 | $ | 1,574,745 | ||||||||||
Interest-bearing deposits | 3,411,477 | 3,409,536 | 3,444,217 | 3,376,900 | 3,152,674 | |||||||||||||||
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Total deposits | 5,056,289 | 5,063,807 | 5,190,169 | 5,097,283 | 4,727,419 | |||||||||||||||
Borrowings | 556,924 | 525,340 | 615,675 | 500,903 | 621,155 | |||||||||||||||
Other liabilities | 135,619 | 97,430 | 54,240 | 77,425 | 65,469 | |||||||||||||||
Shareholders’ equity | 866,158 | 838,608 | 804,986 | 792,034 | 701,193 | |||||||||||||||
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Total liabilities and shareholders’ equity | $ | 6,614,990 | $ | 6,525,185 | $ | 6,665,070 | $ | 6,467,645 | $ | 6,115,236 | ||||||||||
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Quarter Ended | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
June 30, | Mar. 31, | Dec 31, | Sept. 30, | June 30, | ||||||||||||||||
INCOME STATEMENTS | ||||||||||||||||||||
Interest income | $ | 57,881 | $ | 58,335 | $ | 59,047 | $ | 57,163 | $ | 53,344 | ||||||||||
Interest expense | 1,330 | 1,312 | 1,046 | 1,065 | 1,008 | |||||||||||||||
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Net interest income | 56,551 | 57,023 | 58,001 | 56,098 | 52,336 | |||||||||||||||
Provision for loan losses | 2,058 | 2,328 | 4,177 | 2,664 | 1,554 | |||||||||||||||
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Net interest income after provision for loan losses | 54,493 | 54,695 | 53,824 | 53,434 | 50,782 | |||||||||||||||
Noninterest income | 21,438 | 19,821 | 19,280 | 20,446 | 17,809 | |||||||||||||||
Noninterest expense | 40,756 | 41,081 | 40,342 | 39,973 | 35,204 | |||||||||||||||
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Net income before income taxes | 35,175 | 33,435 | 32,762 | 33,907 | 33,387 | |||||||||||||||
Income tax expense | 8,366 | 7,739 | 7,570 | 8,021 | 8,080 | |||||||||||||||
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Net income | $ | 26,809 | $ | 25,696 | $ | 25,192 | $ | 25,886 | $ | 25,307 | ||||||||||
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PER COMMON SHARE DATA | ||||||||||||||||||||
Net income - basic | $ | 0.41 | $ | 0.39 | $ | 0.38 | $ | 0.40 | $ | 0.39 | ||||||||||
Net income - diluted | 0.41 | 0.39 | 0.38 | 0.40 | 0.39 | |||||||||||||||
Cash dividends declared | 0.18 | 0.16 | 0.16 | 0.16 | 0.16 | |||||||||||||||
Book Value | 13.11 | 12.70 | 12.20 | 12.01 | 10.93 | |||||||||||||||
Market Value | $ | 32.79 | $ | 29.58 | $ | 30.17 | $ | 31.78 | $ | 34.64 | ||||||||||
Shares outstanding - end of period | 66,059,912 | 66,043,442 | 65,990,234 | 65,942,155 | 64,156,302 | |||||||||||||||
Average outstanding shares - basic | 66,016,562 | 65,974,559 | 65,940,127 | 65,335,457 | 64,148,356 | |||||||||||||||
Average outstanding shares - diluted | 66,138,275 | 66,118,998 | 66,105,098 | 65,501,697 | 64,354,720 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 1.65 | % | 1.58 | % | 1.53 | % | 1.61 | % | 1.67 | % | ||||||||||
Return on average equity | 12.76 | 12.55 | 12.54 | 13.63 | 14.38 | |||||||||||||||
Net interest margin (tax equivalent) | 4.12 | 4.15 | 4.16 | 4.13 | 4.07 | |||||||||||||||
Efficiency ratio | 48.43 | 49.52 | 48.38 | 48.44 | 46.46 | |||||||||||||||
Six Months Ended | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
INCOME STATEMENTS | ||||||||||||||||||||
Interest income | $ | 116,216 | $ | 105,413 | ||||||||||||||||
Interest expense | 2,642 | 1,977 | ||||||||||||||||||
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Net interest income | 113,574 | 103,436 | ||||||||||||||||||
Provision for loan losses | 4,386 | 2,844 | ||||||||||||||||||
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Net interest income after provision for loan losses | 109,188 | 100,592 | ||||||||||||||||||
Noninterest income | 41,258 | 33,707 | ||||||||||||||||||
Noninterest expense | 81,836 | 69,151 | ||||||||||||||||||
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Net income before income taxes | 68,610 | 65,148 | ||||||||||||||||||
Income tax expense | 16,105 | 15,845 | ||||||||||||||||||
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Net income | $ | 52,505 | $ | 49,303 | ||||||||||||||||
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PER COMMON SHARE DATA | ||||||||||||||||||||
Net income - basic | $ | 0.80 | $ | 0.77 | ||||||||||||||||
Net income - diluted | 0.79 | 0.77 | ||||||||||||||||||
Cash dividends declared | 0.34 | 0.30 | ||||||||||||||||||
Book Value | 13.11 | 10.93 | ||||||||||||||||||
Market Value | $ | 32.79 | $ | 34.64 | ||||||||||||||||
Shares outstanding - end of period | 66,059,912 | 64,156,302 | ||||||||||||||||||
Average outstanding shares - basic | 65,995,560 | 64,135,731 | ||||||||||||||||||
Average outstanding shares - diluted | 66,153,579 | 64,328,672 | ||||||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 1.61 | % | 1.66 | % | ||||||||||||||||
Return on average equity | 12.65 | 14.19 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.14 | 4.09 | ||||||||||||||||||
Efficiency ratio | 48.97 | 46.73 |
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 44,072 | $ | 41,877 | $ | 40,420 | $ | 38,999 | $ | 37,828 | ||||||||||
Loans charged off | (1,888 | ) | (1,782 | ) | (3,110 | ) | (1,477 | ) | (943 | ) | ||||||||||
Loan recoveries | 818 | 1,649 | 390 | 234 | 560 | |||||||||||||||
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Net recoveries (charge-offs) | (1,070 | ) | (133 | ) | (2,720 | ) | (1,243 | ) | (383 | ) | ||||||||||
Provision for loan losses | 2,058 | 2,328 | 4,177 | 2,664 | 1,554 | |||||||||||||||
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Balance at end of period | $ | 45,060 | $ | 44,072 | $ | 41,877 | $ | 40,420 | $ | 38,999 | ||||||||||
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Allowance for loan losses / period-end loans | 1.36 | % | 1.34 | % | 1.25 | % | 1.23 | % | 1.31 | % | ||||||||||
Allowance for loan losses / nonperforming loans | 112.36 | 156.24 | 143.70 | 183.39 | 228.20 | |||||||||||||||
Net charge-offs / average loans (annualized) | 0.13 | 0.02 | 0.33 | 0.16 | 0.05 | |||||||||||||||
SUMMARY OF LOAN CLASSIFICATION | ||||||||||||||||||||
Special Mention | $ | 26,125 | $ | 31,486 | $ | 40,576 | $ | 43,284 | $ | 47,409 | ||||||||||
Substandard | 106,540 | 110,657 | 108,813 | 68,772 | 48,317 | |||||||||||||||
Doubtful | — | — | 37 | 62 | 43 | |||||||||||||||
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Total classified loans | $ | 132,665 | $ | 142,143 | $ | 149,426 | $ | 112,118 | $ | 95,769 | ||||||||||
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NONPERFORMING ASSETS | ||||||||||||||||||||
Nonaccrual loans | $ | 38,904 | $ | 27,175 | $ | 28,601 | $ | 21,788 | $ | 16,854 | ||||||||||
Accruing troubled debt restructured loans | 961 | 973 | 199 | 204 | 172 | |||||||||||||||
Accruing loans 90 days past due | 237 | 59 | 341 | 49 | 64 | |||||||||||||||
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Total nonperforming loans | 40,102 | 28,207 | 29,141 | 22,041 | 17,090 | |||||||||||||||
Foreclosed assets | 285 | 821 | 627 | 701 | 1,045 | |||||||||||||||
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Total nonperforming assets | $ | 40,387 | $ | 29,028 | $ | 29,768 | $ | 22,742 | $ | 18,135 | ||||||||||
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As a % of loans and foreclosed assets | 1.22 | % | 0.88 | % | 0.89 | % | 0.69 | % | 0.61 | % | ||||||||||
As a % of end of period total assets | 0.61 | 0.44 | 0.45 | 0.35 | 0.30 | |||||||||||||||
OIL AND GAS PORTFOLIO INFORMATION | ||||||||||||||||||||
Oil and gas loans | $ | 87,857 | $ | 92,058 | $ | 96,712 | $ | 92,382 | $ | 82,498 | ||||||||||
Oil and gas loans as a % of total loans | 2.65 | % | 2.79 | % | 2.89 | % | 2.81 | % | 2.78 | % | ||||||||||
Classified oil and gas loans | 32,674 | 36,402 | 34,506 | 30,028 | 26,016 | |||||||||||||||
Nonaccrual oil and gas loans | 5,763 | 4,917 | 5,404 | 2,589 | 481 | |||||||||||||||
Net charge-offs for oil and gas loans | 419 | 517 | 1,370 | 567 | — | |||||||||||||||
Allowance for oil and gas loans as a % of oil and gas loans | 6.57 | % | 7.37 | % | 6.35 | % | 6.48 | % | 5.63 | % | ||||||||||
CAPITAL RATIOS | ||||||||||||||||||||
Common equity Tier 1 capital ratio | 16.64 | % | 16.46 | % | 15.90 | % | 15.73 | % | 16.25 | % | ||||||||||
Tier 1 capital ratio | 16.64 | 16.46 | 15.90 | 15.73 | 16.25 | |||||||||||||||
Total capital ratio | 17.79 | 17.60 | 16.97 | 16.78 | 17.36 | |||||||||||||||
Tier 1 leverage | 10.50 | 10.23 | 9.96 | 9.96 | 9.84 | |||||||||||||||
Equity to assets | 13.09 | 12.85 | 12.08 | 12.25 | 11.47 | |||||||||||||||
Quarter Ended | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Trust fees | $ | 4,726 | $ | 4,655 | $ | 4,961 | $ | 4,818 | $ | 4,740 | ||||||||||
Service charges on deposits | 4,404 | 4,413 | 4,730 | 4,653 | 4,021 | |||||||||||||||
ATM, interchange and credit card fees | 5,840 | 5,680 | 5,651 | 5,794 | 5,445 | |||||||||||||||
Real estate mortgage fees | 4,013 | 3,139 | 3,088 | 3,742 | 2,098 | |||||||||||||||
Net gain (loss) on sale of available-for-sale securities | 912 | 2 | 51 | 136 | 239 | |||||||||||||||
Net gain (loss) on sale of foreclosed assets | 278 | 76 | 528 | 28 | (49 | ) | ||||||||||||||
Net gain (loss) on sale of assets | (74 | ) | 513 | (809 | ) | (11 | ) | (4 | ) | |||||||||||
Interest on loan recoveries | 629 | 633 | 216 | 323 | 403 | |||||||||||||||
Other noninterest income | 710 | 710 | 864 | 963 | 916 | |||||||||||||||
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Total noninterest income | $ | 21,438 | $ | 19,821 | $ | 19,280 | $ | 20,446 | $ | 17,809 | ||||||||||
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NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and employee benefits, excluding profit sharing | $ | 22,038 | $ | 21,545 | $ | 20,647 | $ | 20,007 | $ | 17,865 | ||||||||||
Profit sharing expense | 109 | 1,045 | 1,265 | 1,641 | 1,308 | |||||||||||||||
Net occupancy expense | 2,583 | 2,631 | 2,674 | 3,050 | 2,394 | |||||||||||||||
Equipment expense | 3,386 | 3,380 | 3,218 | 3,114 | 2,992 | |||||||||||||||
FDIC insurance premiums | 818 | 824 | 837 | 819 | 749 | |||||||||||||||
ATM, interchange and credit card expenses | 1,806 | 1,687 | 1,540 | 1,509 | 1,609 | |||||||||||||||
Legal, tax and professional fees | 2,108 | 2,209 | 2,037 | 1,497 | 1,701 | |||||||||||||||
Audit fees | 400 | 449 | 359 | 444 | 372 | |||||||||||||||
Printing, stationery and supplies | 464 | 503 | 617 | 594 | 471 | |||||||||||||||
Amortization of intangible assets | 199 | 199 | 199 | 200 | 72 | |||||||||||||||
Advertising and public relations | 1,537 | 1,444 | 1,481 | 1,564 | 1,484 | |||||||||||||||
Correspondent bank service charges | 239 | 247 | 239 | 238 | 225 | |||||||||||||||
Other noninterest expense | 5,069 | 4,918 | 5,229 | 5,296 | 3,962 | |||||||||||||||
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Total noninterest expense | $ | 40,756 | $ | 41,081 | $ | 40,342 | $ | 39,973 | $ | 35,204 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
TAX EQUIVALENT YIELD ADJUSTMENT | $ | 6,168 | $ | 6,115 | $ | 6,111 | $ | 5,984 | $ | 5,635 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Six Months Ended | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Trust fees | $ | 9,380 | $ | 9,472 | ||||||||||||||||
Service charges on deposits | 8,818 | 7,789 | ||||||||||||||||||
ATM, interchange and credit card fees | 11,521 | 10,415 | ||||||||||||||||||
Real estate mortgage fees | 7,153 | 3,580 | ||||||||||||||||||
Net gain (loss) on sale of available-for-sale securities | 914 | 244 | ||||||||||||||||||
Net gain (loss) on sale of foreclosed assets | 353 | (19 | ) | |||||||||||||||||
Net gain (loss) on sale of assets | 439 | 1 | ||||||||||||||||||
Interest on loan recoveries | 1,261 | 510 | ||||||||||||||||||
Other noninterest income | 1,419 | 1,715 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Total noninterest income | $ | 41,258 | $ | 33,707 | ||||||||||||||||
|
|
|
| |||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and employee benefits, excluding profit sharing | $ | 43,583 | $ | 34,889 | ||||||||||||||||
Profit sharing expense | 1,154 | 2,549 | ||||||||||||||||||
Net occupancy expense | 5,214 | 4,590 | ||||||||||||||||||
Equipment expense | 6,766 | 5,891 | ||||||||||||||||||
FDIC insurance premiums | 1,642 | 1,498 | ||||||||||||||||||
ATM, interchange and credit card expenses | 3,492 | 3,335 | ||||||||||||||||||
Legal, tax and professional fees | 4,318 | 3,398 | ||||||||||||||||||
Audit fees | 850 | 752 | ||||||||||||||||||
Printing, stationery and supplies | 967 | 1,067 | ||||||||||||||||||
Amortization of intangible assets | 398 | 162 | ||||||||||||||||||
Advertising and public relations | 2,982 | 2,837 | ||||||||||||||||||
Correspondent bank service charges | 486 | 447 | ||||||||||||||||||
Other noninterest expense | 9,984 | 7,736 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Total noninterest expense | $ | 81,836 | $ | 69,151 | ||||||||||||||||
|
|
|
| |||||||||||||||||
TAX EQUIVALENT YIELD ADJUSTMENT | $ | 12,284 | $ | 10,847 | ||||||||||||||||
|
|
|
|
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
June 30, 2016 | Mar. 31, 2016 | |||||||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | |||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Fed funds sold | $ | 5,701 | $ | 6 | 0.44 | % | $ | 7,534 | $ | 9 | 0.50 | % | ||||||||||||||
Interest-bearing deposits in nonaffiliated banks | 37,159 | 57 | 0.61 | 40,239 | 51 | 0.51 | ||||||||||||||||||||
Taxable securities | 1,349,325 | 7,130 | 2.11 | 1,323,606 | 7,262 | 2.19 | ||||||||||||||||||||
Tax exempt securities | 1,439,575 | 16,446 | 4.57 | 1,428,178 | 16,326 | 4.57 | ||||||||||||||||||||
Loans | 3,295,557 | 40,410 | 4.93 | 3,312,664 | 40,802 | 4.95 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total interest-earning assets | 6,127,317 | $ | 64,049 | 4.20 | % | 6,112,221 | $ | 64,450 | 4.24 | % | ||||||||||||||||
Noninterest-earning assets | 416,414 | 432,862 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total assets | $ | 6,543,731 | $ | 6,545,083 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 3,388,572 | $ | 1,033 | 0.12 | % | $ | 3,445,622 | $ | 1,052 | 0.12 | % | ||||||||||||||
Fed funds purchased and other borrowings | 587,981 | 297 | 0.20 | 562,569 | 260 | 0.19 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total interest-bearing liabilities | 3,976,553 | $ | 1,330 | 0.14 | % | 4,008,191 | $ | 1,312 | 0.13 | % | ||||||||||||||||
Noninterest-bearing liabilities | 1,722,037 | 1,713,122 | ||||||||||||||||||||||||
Shareholders’ equity | 845,141 | 823,770 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,543,731 | $ | 6,545,083 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 62,719 | 4.12 | % | $ | 63,138 | 4.15 | % | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | |||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | 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 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total assets | $ | 6,536,374 | $ | 6,362,773 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
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 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
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 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,536,374 | $ | 6,362,773 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 64,112 | 4.16 | % | $ | 62,082 | 4.13 | % | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2015 | ||||||||||||||||||||||||||
Average | Tax Equivalent | Yield / | ||||||||||||||||||||||||
Balance | Interest | Rate | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Fed funds sold | $ | 10,391 | $ | 10 | 0.37 | % | ||||||||||||||||||||
Interest-bearing deposits in nonaffiliated banks | 34,633 | 40 | 0.47 | |||||||||||||||||||||||
Taxable securities | 1,425,744 | 7,398 | 2.08 | |||||||||||||||||||||||
Tax exempt securities | 1,294,809 | 15,108 | 4.67 | |||||||||||||||||||||||
Loans | 2,954,502 | 36,423 | 4.94 | |||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
Total interest-earning assets | 5,720,079 | $ | 58,979 | 4.14 | % | |||||||||||||||||||||
Noninterest-earning assets | 351,223 | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Total assets | $ | 6,071,302 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 3,177,999 | $ | 902 | 0.11 | % | ||||||||||||||||||||
Fed funds purchased and other borrowings | 558,367 | 106 | 0.08 | |||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
Total interest-bearing liabilities | 3,736,366 | $ | 1,008 | 0.11 | % | |||||||||||||||||||||
Noninterest-bearing liabilities | 1,628,847 | |||||||||||||||||||||||||
Shareholders’ equity | 706,089 | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,071,302 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 57,971 | 4.07 | % | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | |||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Fed funds sold | $ | 6,618 | $ | 16 | 0.48 | % | $ | 8,589 | $ | 14 | 0.33 | % | ||||||||||||||
Interest-bearing deposits in nonaffiliated banks | 38,699 | 108 | 0.56 | 62,063 | 115 | 0.38 | ||||||||||||||||||||
Taxable securities | 1,336,466 | 14,392 | 2.15 | 1,379,664 | 15,208 | 2.20 | ||||||||||||||||||||
Tax exempt securities | 1,433,877 | 32,772 | 4.57 | 1,243,575 | 29,081 | 4.68 | ||||||||||||||||||||
Loans | 3,304,111 | 81,212 | 4.94 | 2,943,216 | 71,842 | 4.92 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total interest-earning assets | 6,119,771 | $ | 128,500 | 4.22 | % | 5,637,107 | $ | 116,260 | 4.16 | % | ||||||||||||||||
Noninterest-earning assets | 424,636 | 357,185 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total assets | $ | 6,544,407 | $ | 5,994,292 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 3,417,096 | $ | 2,085 | 0.12 | % | $ | 3,199,655 | $ | 1,829 | 0.12 | % | ||||||||||||||
Fed funds purchased and other short term borrowings | 575,275 | 557 | 0.19 | 473,760 | 148 | 0.06 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total interest-bearing liabilities | 3,992,371 | $ | 2,642 | 0.14 | % | 3,673,415 | $ | 1,977 | 0.11 | % | ||||||||||||||||
Noninterest-bearing liabilities | 1,717,581 | 1,620,187 | ||||||||||||||||||||||||
Shareholders’ equity | 834,455 | 700,690 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,544,407 | $ | 5,994,292 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 125,858 | 4.14 | % | $ | 114,283 | 4.09 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|