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): July 16, 2003
FIRST FINANCIAL BANKSHARES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Texas 0-7674 75-0944023
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(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
400 Pine Street, Abilene, Texas 79601
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(Address of Principal Executive Offices and Zip Code)
Registrant's Telephone Number (915) 627-7155
ITEM 9. Regulation FD Disclosure
Attached as an exhibit to this Form 8-K is the earnings release for the
quarter ended June 30, 2003 of First Financial Bankshares, Inc. The information
contained in this report on Form 8-K is being furnished pursuant to Item 12 of
Form 8-K as directed by the U. S. Securities and Exchange Commission.
SIGNATURES
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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: July 16, 2003 By: /S/ F. Scott Dueser
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F. SCOTT DUESER
President and Chief Executive
Officer
EXHIBIT
For immediate release, Wednesday, July 16, 2003.......
First Financial Bankshares, Inc. today reported quarterly earnings of $9.2
million for the second quarter of 2003 as compared to $8.5 million for the same
period last year, an 8.2 % increase. Earnings per share for the quarter amounted
to $0.60 as compared to $0.55 for the second quarter of 2002, a 9.1 % increase.
For the six months ended June 30, 2003, net income totaled $17.7 million as
compared to $16.7 million for the first six months of 2002. Earnings per share
for the first six months of 2003 amounted to $1.14 as compared to $1.08 for the
same period last year. Increases in net income and earnings per share for the
first six months of 2003 represent 5.8% and 5.6%, respectively. During the
second quarter, the Company took the opportunity to obtain an increased premium
on student loans by accelerating the sale of $53 million of loans. This was a
contributing factor to the Company's earnings improvement along with a large
increase in real estate mortgage loan fees. The Company's gain on sale of
student loans and real estate mortgage fees totaled $2.4 million for the three
months ended June 30, 2003 compared to $486,000 for the same period in 2002.
As of June 30, 2003, consolidated assets for the Company totaled $2.028 billion,
compared to $1.911 billion a year earlier. Loans decreased $14.3 million from
$935.2 million at June 30, 2002 to $920.9 million at June 30, 2003 primarily
from the sale of the $53 million in student loans. Total deposits were $1.744
billion compared to $1.648 billion in 2002. Shareholders' equity at June 30,
2003, amounted to $251.2 million versus $227.7 million the prior year.
F. Scott Dueser, President and Chief Executive Officer, stated, "We were very
pleased to pass the $2 billion milestone in total assets and to attain a good
increase in earnings for the first half of the year in light of compressed
interest margins. We are working diligently to improve our interest margin,
evaluate sources of additional non interest income and reduce operating
expenses."
First Financial Bankshares, Inc., headquartered in Abilene, Texas, operates 10
separately-chartered Texas banks with 28 locations. The Company is listed on The
Nasdaq Stock Market under the trading symbol FFIN.
*****
The numbers contained within this release are unaudited. 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 per share data)
June 30,
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2003 2002
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ASSETS:
Cash and due from banks $ 109,795 $ 93,930
Fed funds sold 43,725 46,450
Investment securities 879,181 755,326
Loans 920,942 935,174
Allowance for loan losses (11,523) (11,120)
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Net loans 909,419 924,054
Premises and equipment 40,995 41,355
Intangible assets 24,803 24,644
Other assets 20,408 24,782
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Total assets $ 2,028,326 $ 1,910,541
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $ 443,675 $ 398,219
Interest-bearing deposits 1,300,143 1,249,650
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Total deposits 1,743,818 1,647,869
Repurchase agreements 12,056 22,350
Other liabilities 21,272 12,607
Shareholders' equity 251,180 227,715
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Total liabilities and shareholders' equity $ 2,028,326 $ 1,910,541
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Three Months Ended Six Months Ended
June 30, June 30,
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INCOME STATEMENTS 2003 2002 2003 2002
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Interest income $ 23,990 $ 26,346 $ 48,346 $ 52,626
Interest expense 4,482 6,246 9,204 13,318
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Net interest income 19,508 20,100 39,142 39,308
Provision for loan losses 226 510 736 909
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Net interest income after
provision for loan losses 19,282 19,590 38,406 38,399
Net gain on sale of student loans 1,606 117 1,843 314
Real estate mortgage fees 815 369 1,499 791
Other noninterest income 7,088 6,778 14,232 13,276
Noninterest expense 15,521 14,677 30,627 28,911
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Net income before income taxes 13,270 12,177 25,353 23,869
Income tax expense 4,049 3,655 7,683 7,169
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Net income $ 9,221 $ 8,522 $ 17,670 $ 16,700
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PER COMMON SHARE DATA
Net income - basic $ 0.60 $ 0.55 $ 1.14 $ 1.08
Net income - diluted 0.59 0.55 1.14 1.08
Cash dividends 0.31 0.28 0.59 0.52
Book value 16.24 14.75
Market value 33.46 33.46
PERFORMANCE RATIOS
Return on average assets 1.84 % 1.80 % 1.78 % 1.78 %
Return on average equity 15.09 15.73 14.70 15.62
Net interest margin (tax equivalent) 4.44 4.88 4.51 4.83
Efficiency ratio 51.88 51.91 52.35 52.11
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
2003 2002
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June 30, Mar. 31, Dec. 31, Sept 30, June 30,
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ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $ 11,363 $ 11,219 $ 11,530 $ 11,120 $ 10,858
Loans charged off (347) (902) (1,291) (413) (449)
Loan recoveries 281 535 171 171 201
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Net (charge-offs) recoveries (66) (367) (1,120) (242) (248)
Provision for loan losses 226 511 809 652 510
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Balance at end of period $ 11,523 $ 11,363 $ 11,219 $ 11,530 $ 11,120
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Allowance for loan losses /
period-end loans 1.25 % 1.19 % 1.16 % 1.21 % 1.19 %
Allowance for loan losses /
nonperforming loans 823.7 589.4 300.8 263.5 271.6
Net charge-offs / average loans
(annualized) 0.03 0.15 0.46 0.10 0.09
NONPERFORMING ASSETS
Nonaccrual loans $ 1,299 $ 1,829 $ 3,716 $ 4,288 $ 4,036
Accruing loans 90 days past due 100 99 14 87 58
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Total nonperforming loans 1,399 1,928 3,730 4,375 4,094
Foreclosed assets 1,445 1,345 536 1,024 1,021
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Total nonperforming assets $ 2,844 $ 3,273 $ 4,266 $ 5,399 $ 5,115
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As a % of loans and foreclosed assets 0.31 % 0.34 % 0.44 % 0.57 % 0.55 %
CAPITAL RATIOS
Tier 1 Risk-based 19.16 % 19.33 % 18.42 % 18.51 % 18.22 %
Total Risk-based 20.22 20.40 19.47 19.58 19.26
Tier 1 Leverage 10.46 10.35 10.51 10.51 10.37
Equity to assets 12.38 12.03 11.98 12.18 11.92