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): January 19, 2005
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 or other Jurisdiction of Incorporation)(Commission File No.)(IRS Employer
Identifi-
cation 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
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2 (b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 2.02 Results of Operations and Financial Condition
Attached as an exhibit to this Form 8-K is the earnings release for the
quarter ended December 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: January 19, 2005 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 REPORTS FOURTH QUARTER RESULTS AND
18th CONSECUTIVE YEAR OF INCREASED EARNINGS
ABILENE, Texas, January 19, 2005 - First Financial Bankshares, Inc. today
reported results for the fourth quarter of 2004, including an 18.05 percent
increase in earnings over the 2003 fourth quarter. For the quarter, earnings
were $10.06 million compared to $8.52 million for the same period last year.
Basic earnings per share for the quarter amounted to $0.65 as compared to $0.55
for the fourth quarter of 2003, an 18.18 percent increase.
The Company also reported its 18th consecutive year of increased earnings. For
the year ended December 31, 2004, net income totaled $39.17 million, a 10.95
percent increase compared to net income of $35.30 million for 2003. Basic
earnings per share for 2004 rose 10.96 percent to $2.53, compared to $2.28 in
the previous year. The return on average assets for 2004 was 1.82 percent,
compared to 1.75 percent the prior year. The return on average equity was 15.09
percent for 2004, compared to 14.40 percent in 2003.
As of December 31, 2004, consolidated assets for the Company totaled $2.315
billion, compared to $2.093 billion at the end of 2003. Loans increased 17.9
percent to $1.164 billion at year end, compared to loans of $987.5 million a
year ago. Total deposits increased 11.0 percent during 2004 to $1.994 billion at
December 31, 2004, compared to $1.796 billion the previous year. The
acquisitions of banks in Granbury and Glen Rose during 2004 accounted for $77
million of the loan growth and $93 million of the deposit growth. Shareholders'
equity rose to $265.5 million at December 31, 2004, compared to $251.5 million
the prior year.
"We are again very pleased with our results for the quarter and year," said F.
Scott Dueser, President and Chief Executive Officer. "Our net interest income
continues to improve as interest rates rise and our loan volumes increase. Our
noninterest income continues to improve from the implementation of our new
products. We are excited about the growth of our franchise in Granbury and Glen
Rose, and we look forward to closing our transaction with The Peoples State Bank
in Clyde during the first quarter of this year."
Net interest income for the fourth quarter increased 10.37 percent to $21.96
million compared to $19.90 million in the previous year's fourth quarter. The
provision for loan losses rose to $614,000 in the fourth quarter compared to
$208,000 in the same quarter last year, primarily as a result of loan growth.
Revenue from service fees increased 35.4 percent to $5.37 million in the fourth
quarter compared to $3.97 million a year ago, primarily as a result of the
increased utilization of an enhanced overdraft privilege product. At the same
time, noninterest expense increased 8.37 percent, to $16.93 million compared to
$15.62 million in the same quarter of 2003.
For the year, net interest income rose 7.35 percent to $83.90 million as
compared to $78.15 million for 2003. Revenue from service fees increased 29.74
percent to $20.43 million compared to $15.75 million in 2003. Noninterest
expense was $66.13 million, compared to $61.15 million in the prior year, an
increase of 8.13 percent.
Nonperforming assets were $5.04 million at year end, or 0.43 percent of loans
and foreclosed assets. That compares with $3.17 million, or 0.32 percent, at the
end of 2003. This increase is due primarily to certain loans acquired in the
Granbury and Glen Rose acquisitions. The allowance for loan losses as a
percentage of total loans was 1.19 percent as of December 31, 2004, compared to
1.17 percent at the end of the prior year.
Headquartered in Abilene, Texas, First Financial Bankshares is a financial
holding company with consolidated assets totaling $2.3 billion operating ten
separately chartered banks with 31 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, Burleson and Alvarado; Hereford State Bank, Hereford; City National
Bank, Mineral Wells; San Angelo National Bank, San Angelo; First Financial Bank,
N.A., Southlake, Trophy Club and Keller; First Financial Bank, N.A.,
Stephenville, Granbury and Glen Rose; First National Bank, Sweetwater, Roby and
Trent; Weatherford National Bank, Weatherford, Willow Park and Aledo; 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, access their 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)
December 31,
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2004 2003
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ASSETS:
Cash and due from banks $ 94,998 $ 112,817
Fed funds sold 99,750 1,900
Investment securities 854,334 910,302
Loans 1,164,223 987,523
Allowance for loan losses (13,837) (11,576)
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Net loans 1,150,386 975,947
Premises and equipment 49,740 43,902
Goodwill and intangible assets 40,546 24,718
Other assets 25,470 22,985
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Total assets $ 2,315,224 $ 2,092,571
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $ 512,009 $ 472,575
Interest-bearing deposits 1,482,303 1,323,696
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Total deposits 1,994,312 1,796,271
Fed Funds purchased and repurchase agreements 35,691 28,975
Other liabilities 19,675 15,838
Shareholders' equity 265,546 251,487
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Total liabilities and shareholders' equity $ 2,315,224 $ 2,092,571
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Three Months Ended Year Ended
December 31, December 31,
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INCOME STATEMENTS 2004 2003 2004 2003
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Interest income $ 26,662 $ 23,729 $ 99,973 $ 95,285
Interest expense 4,699 3,830 16,077 17,131
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Net interest income 21,963 19,899 83,896 78,154
Provision for loan losses 614 208 1,633 1,178
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Net interest income after
provision for loan losses 21,349 19,691 82,263 76,976
Net gain on sale of student loans 80 56 2,592 1,896
Net gain on securities transactions 336 9 388 25
Trust fees 1,707 1,606 6,374 6,018
Service charges on deposits 5,373 3,969 20,430 15,747
Real estate mortgage fees 435 440 1,982 2,923
Net gain on sale of real estate 1 15 172 743
Other noninterest income 1,784 1,582 6,885 6,757
Noninterest expense 16,929 15,622 66,128 61,154
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Net income before income taxes 14,136 11,746 54,958 49,931
Income tax expense 4,078 3,226 15,787 14,626
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Net income $ 10,058 $ 8,520 $ 39,171 $ 35,305
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PER COMMON SHARE DATA
Net income - basic $ 0.65 $ 0.55 $ 2.53 $ 2.28
Net income - diluted 0.65 0.55 2.52 2.27
Cash dividends 0.34 0.31 1.33 1.21
Book value 17.12 16.25
Market value 44.81 41.12
Shares outstanding - end of period 15,511,576 15,480,679 15,511,576 15,480,679
Average outstanding shares - basic 15,504,439 15,477,334 15,494,265 15,468,752
Average outstanding shares - diluted 15,571,205 15,558,456 15,563,925 15,532,385
PERFORMANCE RATIOS
Return on average assets 1.78 % 1.64 % 1.82 % 1.75 %
Return on average equity 15.00 13.55 15.09 14.40
Net interest margin (tax equivalent) 4.46 4.44 4.49 4.44
Efficiency ratio 51.42 54.15 51.78 52.52
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
Quarter Ended
2004 2003
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Dec 31, Sept 30, June 30, Mar. 31, Dec. 31,
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ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $ 13,680 $ 11,932 $ 11,792 $ 11,576 $ 11,462
Loans charged off (1,099) (331) (317) (241) (401)
Loan recoveries 185 147 149 279 307
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Net (charge-offs) recoveries (914) (184) (168) 38 (94)
Allowance established at acquisition 457 1,400 - - -
Provision for loan losses 614 532 308 178 208
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Balance at end of period $ 13,837 $ 13,680 $ 11,932 $ 11,792 $ 11,576
=========== ============= ============= ============== ===============
Allowance for loan losses /
period-end loans 1.19 % 1.21 % 1.18 % 1.22 % 1.17 %
Allowance for loan losses /
nonperforming loans 324.7 295.8 690.7 767.0 661.0
Net charge-offs / average loans
(annualized) 0.32 0.07 0.07 (0.02) 0.04
NONPERFORMING ASSETS
Nonaccrual loans $ 4,142 $ 4,564 $ 1,691 $ 1,531 $ 1,690
Accruing loans 90 days past due 120 60 36 6 61
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Total nonperforming loans 4,262 4,624 1,727 1,537 1,751
Foreclosed assets 779 514 798 961 1,420
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Total nonperforming assets $ 5,041 $ 5,138 $ 2,525 $ 2,498 $ 3,171
=========== ============= ============= ============== ===============
As a % of loans and foreclosed assets 0.43 % 0.46 % 0.25 % 0.26 % 0.32 %
CAPITAL RATIOS
Tier 1 Risk-based 16.46 % 17.50 % 18.88 % 19.31 % 18.83 %
Total Risk-based 17.49 18.56 19.87 20.33 19.83
Tier 1 Leverage 9.80 10.46 10.95 10.79 10.60
Equity to assets 11.47 11.98 11.98 12.68 12.02
Three Months Ended Year Ended
December 31, December 31,
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NONINTEREST EXPENSE 2004 2003 2004 2003
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Salaries and Employee Benefits $ 8,770 $ 8,507 $ 35,529 $ 33,349
Net Occupancy Expense 1,060 973 4,196 3,941
Equipment Expense 1,387 1,266 5,533 4,869
Printing, Stationery and Supplies 383 397 1,444 1,431
Service Charges from Correspondents 384 374 1,577 1,501
Amortization of Intangible Assets 46 34 162 135
Other Noninterest Expense 4,899 4,071 17,687 15,928
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Total Noninterest Expense $ 16,929 $ 15,622 $ 66,128 $ 61,154
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FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
Three Months Ended Year Ended
SELECTED AVERAGE BALANCES December 31, December 31,
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2004 2003 2004 2003
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Total Loans $ 1,135,634 $ 963,669 $ 1,044,010 $ 946,173
Investment Securities 882,728 908,898 906,651 866,718
Federal Funds Sold and Other Short Term Investments 49,376 18,781 28,032 42,643
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Total Interest Earning Assets $ 2,067,738 $ 1,891,348 $ 1,978,693 $ 1,855,534
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Interest Bearing Deposits $ 1,424,084 $ 1,327,954 $ 1,350,991 $ 1,308,485
Federal Funds Purchased and Repurchase Agreements 46,343 19,772 55,635 19,615
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Total Interest Bearing Liabilities $ 1,470,427 $ 1,347,726 $ 1,406,626 $ 1,328,100
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Shareholders' Equity $ 266,726 $ 249,402 $ 259,502 $ 245,128
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Total Assets $ 2,254,207 $ 2,064,441 $ 2,148,341 $ 2,020,185
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