UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): October 16, 2003
FIRST FINANCIAL BANKSHARES, INC.
--------------------------------
(Exact Name of Registrant as Specified in its Charter)
Texas 0-7674 75-0944023
- ----------------------- --------------------- -------------------
(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
400 Pine Street, Abilene, Texas 79601
-------------------------------------
(Address of Principal Executive Offices and Zip Code)
Registrant's Telephone Number (325) 627-7155
ITEM 9. Regulation FD Disclosure
Attached as an exhibit to this Form 8-K is the earnings release for the
quarter ended September 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
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST FINANCIAL BANKSHARES, INC.
(Registrant)
DATE: October 16, 2003 By: /S/ F. Scott Dueser
-------------------------------------
F. SCOTT DUESER
President and Chief Executive Officer
EXHIBIT
For immediate release, Thursday, October 16, 2003.......Abilene, Texas
FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER EARNINGS
First Financial Bankshares, Inc. today reported quarterly earnings of $9.1
million for the third quarter of 2003 as compared to $8.7 million for the same
period last year, a 4.8 % increase. Earnings per share for the quarter amounted
to $0.59 as compared to $0.56 for the third quarter of 2002, a 5.4 % increase.
For the nine months ended September 30, 2003, net income totaled $26.8 million
as compared to $25.4 million for the same period in 2002. Earnings per share for
the nine months of 2003 amounted to $1.73 as compared to $1.65 for the same
period last year. Net income and earnings per share for the nine months of 2003
represented increases of 5.4% and 4.8%, respectively. Contributing factors to
the Company's earnings improvement for the third quarter were an increase in
real estate mortgage loan fees of $458 thousand, gains from the sale of real
estate of $702 thousand and $419 thousand less in provisions for loan losses.
As of September 30, 2003, consolidated assets for the Company totaled $2.070
billion, compared to $1.953 billion a year earlier. Loans decreased slightly
from $950.3 million at September 30, 2002 to $948.5 million at September 30,
2003, primarily from the sale of student loans in the second quarter of 2003.
Total deposits were $1.788 billion compared to $1.673 billion in 2002.
Shareholders' equity at September 30, 2003, amounted to $249.1 million versus
$237.9 million the prior year.
F. Scott Dueser, President and Chief Executive Officer, stated, "We were pleased
to continue to grow our asset base and to report a good earnings increase for
the quarter and nine months. During the third quarter, compressed interest
margins continued to decrease our net interest income; however, the decrease was
offset by lower loan loss provisions, an increase in real estate mortgage fees,
income from the sale of two properties and expense control.
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)
September 30,
-------------------------------
2003 2002
-------------- --------------
ASSETS:
Cash and due from banks $ 112,016 $ 103,071
Fed funds sold 30,750 52,575
Investment securities 900,585 775,435
Loans 948,521 950,292
Allowance for loan losses (11,462) (11,530)
-------------- --------------
Net loans 937,059 938,762
Premises and equipment 42,844 40,982
Intangible assets 24,769 24,611
Other assets 21,836 17,652
-------------- --------------
Total assets $ 2,069,859 $ 1,953,088
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $ 446,796 $ 419,554
Interest-bearing deposits 1,341,547 1,252,968
-------------- --------------
Total deposits 1,788,343 1,672,522
Repurchase agreements 13,934 28,466
Other liabilities 18,493 14,176
Shareholders' equity 249,089 237,924
-------------- --------------
Total liabilities and shareholders' equity $ 2,069,859 $ 1,953,088
============== ==============
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- -------------------------------
INCOME STATEMENTS 2003 2002 2003 2002
------------- ------------- -------------- --------------
Interest income $ 23,209 $ 26,052 $ 71,556 $ 78,683
Interest expense 4,097 5,818 13,302 19,137
------------- ------------- -------------- --------------
Net interest income 19,112 20,234 58,254 59,546
Provision for loan losses 233 652 969 1,561
------------- ------------- -------------- --------------
Net interest income after
provision for loan losses 18,879 19,582 57,285 57,985
Net gain on sale of student loans 17 311 1,839 626
Net gain on real estate and other assets 702 10 728 10
Real estate mortgage fees 984 526 2,483 1,317
Other noninterest income 7,153 6,942 21,381 20,235
Noninterest expense 14,905 14,903 45,531 43,835
------------- ------------- -------------- --------------
Net income before income taxes 12,830 12,468 38,185 36,338
Income tax expense 3,716 3,768 11,400 10,937
------------- ------------- -------------- --------------
Net income $ 9,114 $ 8,700 $ 26,785 $ 25,401
============= ============= ============== ==============
PER COMMON SHARE DATA
Net income - basic $ 0.59 $ 0.56 $ 1.73 $ 1.65
Net income - diluted 0.59 0.56 1.73 1.64
Cash dividends 0.31 0.28 0.90 0.80
Book value 16.10 15.40
Market value 36.96 29.15
PERFORMANCE RATIOS
Return on average assets 1.78 % 1.80 % 1.78 % 1.79 %
Return on average equity 14.69 14.85 14.70 15.22
Net interest margin (tax equivalent) 4.35 4.83 4.38 4.74
Efficiency ratio 51.27 51.44 51.99 51.88
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
2003 2002
-------------------------------------------- -------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
------------ ------------- ------------- -------------- ---------------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $ 11,523 $ 11,363 $ 11,219 $ 11,530 $ 11,120
Loans charged off (526) (347) (902) (1,291) (413)
Loan recoveries 232 281 535 171 171
------------ ------------- ------------- -------------- --------------
Net (charge-offs) recoveries (294) (66) (367) (1,120) (242)
Provision for loan losses 233 226 511 809 652
------------ ------------- ------------- -------------- --------------
Balance at end of period $ 11,462 $ 11,523 $ 11,363 $ 11,219 $ 11,530
============ ============= ============= ============== ==============
Allowance for loan losses /
period-end loans 1.21 % 1.25 % 1.19 % 1.16 % 1.21 %
Allowance for loan losses /
nonperforming loans 711.1 823.7 589.4 300.8 263.5
Net charge-offs / average loans
(annualized) 0.12 0.03 0.15 0.46 0.10
NONPERFORMING ASSETS
Nonaccrual loans $ 1,552 $ 1,299 $ 1,829 $ 3,716 $ 4,288
Accruing loans 90 days past due 60 100 99 14 87
------------ ------------- ------------- -------------- --------------
Total nonperforming loans 1,612 1,399 1,928 3,730 4,375
Foreclosed assets 1,411 1,445 1,345 536 1,024
------------ ------------- ------------- -------------- --------------
Total nonperforming assets $ 3,023 $ 2,844 $ 3,273 $ 4,266 $ 5,399
============ ============= ============= ============== ==============
As a % of loans and foreclosed assets 0.32 % 0.31 % 0.34 % 0.44 % 0.57 %
CAPITAL RATIOS
Tier 1 Risk-based 19.14 % 19.16 % 19.33 % 18.42 % 18.51 %
Total Risk-based 20.17 20.22 20.40 19.47 19.58
Tier 1 Leverage 10.55 10.46 10.35 10.51 10.51
Equity to assets 12.03 12.38 12.03 11.98 12.18