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): April 20, 2004
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 (325) 627-7155
ITEM 12. 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, 2004 of First Financial Bankshares, Inc.
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: April 20, 2004 By: /S/ F. Scott Dueser
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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
INCREASED FIRST QUARTER EARNINGS
ABILENE, Texas, April 20, 2004 - First Financial Bankshares, Inc. today reported
quarterly earnings of $10.1 million for the first quarter of 2004 as compared to
$8.5 million for the same period last year, a 19.4% increase. Earnings per share
for the quarter amounted to $0.65 as compared to $0.55 for the first quarter of
2003, an 18.2% increase. During the first quarter, the Company accelerated the
sale of $60 million of student loans as it had done in the second quarter of
2003. The after tax premium on the student loan sales totaled $1.2 million for
the first quarter of 2004 compared to $154,000 for the same period in 2003. This
gain along with a 3.8% increase in net interest income and 12.2% increase in
service fees on deposits were the primary factors contributing to the Company's
earnings improvement.
As of March 31, 2004, consolidated assets for the Company totaled $2.078
billion, compared to $1.996 billion a year earlier. Loans totaled $965.7 million
at March 31, 2004, an increase of $10.1 million after the sale of $60 million in
student loans. Total deposits were $1.774 billion compared to $1.723 billion in
2003. Shareholders' equity at March 31, 2004, amounted to $263.4 million versus
$240.2 million the prior year.
"We were pleased with our first quarter growth in earnings and the increase in
net interest income despite continuing tight interest margins in the industry,"
said F. Scott Dueser, President and Chief Executive Officer. "Even without the
gains derived from the student loan sales, we showed a 7.6% growth in net
earnings. We are also pleased about our proposed acquisition of Liberty National
Bank in Granbury, which when finalized will strengthen our presence in another
growing community within 50 miles of Dallas/Fort Worth."
Headquartered in Abilene, Texas, First Financial Bankshares is a financial
holding company with consolidated assets totaling $2.1 billion operating
separately chartered banks with 28 locations in Texas, a trust company and a
technology operating company. These subsidiaries are First National Bank of
Abilene, Abilene; Eastland National Bank, Eastland; First Financial Bank, N.A.;
Hereford State Bank, Hereford; City National Bank, Mineral Wells; San Angelo
National Bank, San Angelo; First Financial Bank, N.A., Southlake; Stephenville
Bank & Trust Co., Stephenville; First National Bank, Sweetwater; Weatherford
National Bank, Weatherford; 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 polices 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)
March 31,
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2004 2003
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ASSETS:
Cash and due from banks $ 88,787 $ 96,292
Fed funds sold 15,175 17,875
Investment securities 930,430 850,308
Loans 965,731 955,650
Allowance for loan losses (11,792) (11,363)
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Net loans 953,939 944,287
Premises and equipment 43,542 41,084
Goodwill and intangible assets 24,684 24,837
Other assets 21,137 21,722
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Total assets $ 2,077,694 $ 1,996,405
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $ 455,107 $ 431,521
Interest-bearing deposits 1,319,173 1,291,884
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Total deposits 1,774,280 1,723,405
Repurchase agreements 15,438 12,490
Other liabilities 24,601 20,312
Shareholders' equity 263,375 240,198
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Total liabilities and shareholders' equity $ 2,077,694 $ 1,996,405
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Three Months Ended
March 31,
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INCOME STATEMENTS 2004 2003
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Interest income $ 24,011 $ 24,352
Interest expense 3,627 4,718
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Net interest income 20,384 19,634
Provision for loan losses 178 511
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Net interest income after
provision for loan losses 20,206 19,123
Net gain on sale of student loans 1,792 237
Real estate mortgage fees 424 684
Net gain on security transactions 18 -
Other noninterest income 7,669 7,152
Noninterest expense 15,890 15,112
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Net income before income taxes 14,219 12,084
Income tax expense 4,126 3,634
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Net income $ 10,093 $ 8,450
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PER COMMON SHARE DATA
Net income - basic $ 0.65 $ 0.55
Net income - diluted 0.65 0.54
Cash dividends 0.31 0.28
Book value 17.01 15.54
Market value 40.19 28.40
Average outstanding shares - basic 15,483,756 15,456,529
Average outstanding shares - diluted 15,558,525 15,512,345
PERFORMANCE RATIOS
Return on average assets 1.96% 1.72%
Return on average equity 15.85 14.49
Net interest margin (tax equivalent) 4.57 4.58
Efficiency ratio 50.40 52.77
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
Quarter Ended
2004 2003
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March 31, Dec. 31, Sept. 30, June 30, March 31,
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ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $ 11,576 $ 11,462 $ 11,523 $ 11,363 $ 11,219
Loans charged off (241) (401) (526) (347) (902)
Loan recoveries 279 307 232 281 535
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Net (charge-offs) recoveries 38 (94) (294) (66) (367)
Provision for loan losses 178 208 233 226 511
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Balance at end of period $ 11,792 $ 11,576 $ 11,462 $ 11,523 $ 11,363
Allowance for loan losses /
period-end loans 1.22 % 1.17 % 1.21 % 1.25 % 1.19 %
Allowance for loan losses /
nonperforming loans 767.0 661.0 711.1 823.7 589.4
Net charge-offs / average loans
(annualized) (0.02) 0.04 0.12 0.03 0.15
NONPERFORMING ASSETS
Nonaccrual loans 1,531 1,690 1,552 1,299 1,829
Accruing loans 90 days past due 6 61 60 100 99
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Total nonperforming loans 1,537 1,751 1,612 1,399 1,928
Foreclosed assets 961 1,420 1,411 1,445 1,345
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Total nonperforming assets $ 2,498 $ 3,171 $ 3,023 $ 2,844 $ 3,273
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As a % of loans and foreclosed assets 0.26 % 0.32 % 0.32 % 0.31 % 0.34 %
CAPITAL RATIOS
Tier 1 Risk-based 19.31 % 18.83 % 19.14 % 19.16 % 19.33 %
Total Risk-based 20.33 19.83 20.17 20.22 20.40
Tier 1 Leverage 10.79 10.60 10.55 10.46 10.35
Equity to assets 12.68 12.02 12.03 12.38 12.03