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 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 June 30, 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: July 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
SECOND QUARTER EARNINGS
ABILENE, Texas, July 20, 2004 - First Financial Bankshares, Inc. today reported
quarterly earnings of $9.17 million for the second quarter of 2004 as compared
to $9.22 million for the same period last year, a 0.58% decrease. Earnings per
share for the quarter amounted to $0.59 as compared to $0.60 for the second
quarter of 2003, a 1.7% decrease. The primary reason for the slight decline in
net income in the second quarter was the difference in the amount of student
loan sales in this year's second quarter compared to the same quarter last year.
During the second quarter of 2003, the Company had a $1.6 million gain from the
sale of $53 million in student loans, compared to $638,000 in gains from a $17
million student loan sale in the second quarter of 2004. A large $1.8 million
gain from the sale of $60 million in student loans was recognized in the first
quarter of 2004. Gains from student loan sales in the first half of 2004 were
$2.4 million, compared to gains of $1.8 million in the first half of last year.
For the six months ended June 30, 2004, net income totaled $19.26 million as
compared to $17.67 million for the first six months of 2003, a 9.0% increase.
Earnings per share for the first six months of 2004 amounted to $1.24 per share
compared to $1.14 per share for the first six months of 2003, an 8.8% increase.
On a six month year-to-date basis, the Company continued to increase its net
interest income, 3.8% over the prior period, and experienced an 18.9% increase
in total service fees on deposits, all contributing factors to strong growth for
the six month period. Revenue from service fees increased as a result of a
higher volume of transactions following the enhancement of our overdraft
privilege product for our customers.
As of June 30, 2004, consolidated assets for the Company totaled $2.081 billion,
compared to $2.028 billion a year earlier. Loans totaled $1.010 billion at June
30, 2004, an increase of $88.9 million and total deposits were $1.747 billion
compared to $1.744 billion in 2003. Shareholders' equity at June 30, 2004,
amounted to $249.3 million versus $251.2 million the prior year, primarily a
result of a $20.0 million decline in market value of available-for-sale
securities, net of income taxes.
"We are pleased with our overall earnings and growth, including the increase in
net interest income, despite continuing tight interest margins in the industry,"
said F. Scott Dueser, President and Chief Executive Officer. "First Financial
would have made higher profits in the second quarter of 2004 compared to the
same quarter last year, if adjusted for the quarter-to-quarter fluctuation in
student loan sales. We continue to explore ways to improve our noninterest
income and minimize our expenses and believe that these efforts will position us
well for a strong performance in the second half of 2004."
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.,
Cleburne; 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 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)
June 30,
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2004 2003
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ASSETS:
Cash and due from banks $ 83,321 $ 109,795
Fed funds sold - 43,725
Investment securities 904,470 879,181
Loans 1,009,796 920,942
Allowance for loan losses (11,932) (11,523)
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Net loans 997,864 909,419
Premises and equipment 44,727 40,995
Goodwill and intangible assets 24,650 24,803
Other assets 25,674 20,408
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Total assets $ 2,080,706 $ 2,028,326
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $ 451,387 $ 443,675
Interest-bearing deposits 1,296,007 1,300,143
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Total deposits 1,747,394 1,743,818
Fed Funds purchased and repurchase agreements 66,694 12,056
Other liabilities 17,316 21,272
Shareholders' equity 249,302 251,180
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Total liabilities and shareholders' equity $ 2,080,706 $ 2,028,326
================ ===============
Three Months Ended Six Months Ended
June 30, June 30,
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INCOME STATEMENTS 2004 2003 2004 2003
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Interest income $ 23,828 $ 23,990 $ 47,920 $ 48,346
Interest expense 3,575 4,482 7,284 9,204
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Net interest income 20,253 19,508 40,636 39,142
Provision for loan losses 308 226 486 736
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Net interest income after
provision for loan losses 19,945 19,282 40,150 38,406
Net gain on sale of student loans 638 1,606 2,430 1,843
Real estate mortgage fees 551 815 975 1,499
Net gain (loss) on security transactions - (5) 18 (5)
Other noninterest income 8,164 7,093 15,833 14,237
Noninterest expense 16,498 15,521 32,388 30,627
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Net income before income taxes 12,800 13,270 27,018 25,353
Income tax expense 3,632 4,049 7,758 7,683
--------------- -------------- ---------------- ---------------
Net income $ 9,168 $ 9,221 $ 19,260 $ 17,670
=============== ============== ================ ===============
PER COMMON SHARE DATA
Net income - basic $ 0.59 $ 0.60 $ 1.24 $ 1.14
Net income - diluted 0.59 0.59 1.24 1.14
Cash dividends 0.34 0.31 0.65 0.59
Book value 16.09 16.24
Market value 41.93 33.46
Shares Outstanding - end of period 15,494,406 15,471,429 15,494,406 15,471,429
Average Outstanding Shares - basic 15,490,643 15,466,371 15,487,200 15,461,477
Average Outstanding Shares - diluted 15,561,547 15,519,299 15,560,050 15,514,470
PERFORMANCE RATIOS
Return on average assets 1.77 % 1.84 % 1.85 % 1.78 %
Return on average equity 14.50 15.09 15.21 14.70
Net interest margin (tax equivalent) 4.51 4.44 4.51 4.51
Efficiency ratio 53.49 51.88 51.93 52.35
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
Quarter Ended
2004 2003
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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 $ 11,792 $ 11,576 $ 11,462 $ 11,523 $ 11,363
Loans charged off (317) (241) (401) (526) (347)
Loan recoveries 149 279 307 232 281
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Net (charge-offs) recoveries (168) 38 (94) (294) (66)
Provision for loan losses 308 178 208 233 226
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Balance at end of period $ 11,932 $ 11,792 $ 11,576 $ 11,462 $ 11,523
============== =============== ============== ================ ===============
Allowance for loan losses /
period-end loans 1.18 % 1.22 % 1.17 % 1.21 % 1.25 %
Allowance for loan losses /
nonperforming loans 690.7 767.0 661.0 711.1 823.7
Net charge-offs / average loans
(annualized) 0.07 (0.02) 0.04 0.12 0.03
NONPERFORMING ASSETS
Nonaccrual loans $ 1,691 $ 1,531 $ 1,690 $ 1,552 $ 1,299
Accruing loans 90 days past due 36 6 61 60 100
-------------- --------------- -------------- ---------------- ---------------
Total nonperforming loans 1,727 1,537 1,751 1,612 1,399
Foreclosed assets 798 961 1,420 1,411 1,445
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Total nonperforming assets $ 2,525 $ 2,498 $ 3,171 $ 3,023 $ 2,844
============== =============== ============== ================ ===============
As a % of loans and foreclosed assets 0.25 % 0.26 % 0.32 % 0.32 % 0.31 %
CAPITAL RATIOS
Tier 1 Risk-based 18.88 % 19.31 % 18.83 % 19.14 % 19.16 %
Total Risk-based 19.87 20.33 19.83 20.17 20.22
Tier 1 Leverage 10.95 10.79 10.60 10.55 10.46
Equity to assets 11.98 12.68 12.02 12.03 12.38