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, 2005
FIRST FINANCIAL BANKSHARES, INC.
--------------------------------
(Exact Name of Registrant as Specified in its Charter)
Texas 0-7674 75-0944023
- ---------------------------- --------------------- -------------------
(State or other Jurisdiction (Commission File No.) (IRS Employer
of Incorporation Identification No.)
400 Pine Street, Abilene, Texas 79601
-------------------------------------
(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 June 30, 2005 of First Financial Bankshares, Inc.
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: July 20, 2005 By: /S/ F. Scott Dueser
-------------------------------------
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 RESULTS
ABILENE, Texas, July 20, 2005 - First Financial Bankshares, Inc. today reported
earnings for the second quarter of 2005 of $10.6 million, a 15.7 percent
increase compared with $9.2 million in the same quarter last year. Basic
earnings per share were $0.51 compared with $0.44 in the same period last year.
These results include a final $513,000 special distribution of proceeds to the
Company from the merger of PULSE EFT Association and Discover Financial
Services, Inc. Excluding the PULSE proceeds, net income for the second quarter
of 2005 would have been $10.3 million, or $0.50 per share, an increase of 12.0
percent over the same quarter last year.
Net interest income in the second quarter increased 17.1 percent to $23.7
million compared with $20.3 million in the same quarter last year, due primarily
to an increase in interest-earning assets from the acquisition of banks in
Granbury, Glen Rose and Clyde. The net gain on the sale of student loans was
$350,000 in the second quarter of 2005 versus $638,000 in the same quarter last
year, as a result of fewer student loans sold. Trust fees increased 12.9 percent
to $1.7 million compared with $1.5 million in the same quarter last year.
Revenue from service fees increased 7.7 percent to $5.4 million compared with
$5.0 million a year ago, primarily as a result of an increase in the number of
new accounts using the Company's overdraft privilege product.
"Our results in the second quarter benefited from the Company's growth during
the past year through acquisitions, new branches and innovative new products,"
said F. Scott Dueser, President and Chief Executive Officer. "We expect to
continue to benefit from these initiatives in the months ahead and plan to open
new branches in Midlothian and Granbury. As we continue to grow, we are focused
on improving our net earnings and efficiency, while providing excellent service
to our valued customers."
For the first half of 2005, net income rose 17.8 percent to $22.68 million from
$19.26 million in the first six months of 2004. Excluding both PULSE proceeds
received during the first and second quarters of 2005, net income for the six
months ended June 30, 2005, increased 6.0 percent to $20.41 million. Basic
earnings per share for the first half of 2005 were $1.10 compared with $0.93 in
the same period a year ago. Net interest income increased 14.6 percent in the
first half of 2005 to $46.58 million from $40.64 million in the same period last
year, due primarily to a higher volume of interest-earning assets, as discussed
above.
As of June 30, 2005, consolidated assets for the Company totaled $2.43 billion
compared with $2.08 billion a year ago. Loans totaled $1.19 billion in the
second quarter of 2005, an increase of 18.1 percent from $1.01 billion in the
same quarter last year. Total deposits rose 19.8 percent to $2.09 billion from
$1.75 billion a year earlier. The acquisition of banks in Granbury, Glen Rose
and Clyde accounted for $132 million of the loan growth and $211 million of the
deposit growth. Shareholders' equity rose to $274.0 million as of June 30, 2005,
compared with $249.3 million the prior year.
Headquartered in Abilene, Texas, First Financial Bankshares is a financial
holding company that operates ten separately chartered banks with 38 locations
in Texas, a trust company and a technology operating company. These subsidiaries
are First Financial Bank, N.A., Abilene, Clyde and Moran; First Financial Bank,
N.A., Eastland, Ranger and Rising Star; 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, 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,
-------------------------------
2005 2004
------------- -------------
ASSETS:
Cash and due from banks $ 90,649 $ 83,321
Fed funds sold 40,100 -
Investment securities 980,798 904,470
Loans 1,192,212 1,009,796
Allowance for loan losses (14,323) (11,932)
------------- -------------
Net loans 1,177,889 997,864
Premises and equipment 55,216 44,727
Goodwill and intangible assets 54,010 24,650
Other assets 27,163 25,674
------------- -------------
Total assets $ 2,425,825 $ 2,080,706
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Noninterest-bearing deposits $ 553,682 $ 451,387
Interest-bearing deposits 1,540,391 1,296,007
------------- -------------
Total deposits 2,094,073 1,747,394
Fed Funds purchased and repurchase agreements 38,279 66,694
Other liabilities 19,463 17,316
Shareholders' equity 274,010 249,302
-------------- --------------
Total liabilities and shareholders' equity $ 2,425,825 $ 2,080,706
============== ==============
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ------------------------------
2005 2004 2005 2004
----------- ----------- ------------ ------------
INCOME STATEMENTS
Interest income $ 30,294 $ 23,828 $ 58,828 $ 47,920
Interest expense 6,569 3,575 12,247 7,284
----------- ----------- ------------ ------------
Net interest income 23,725 20,253 46,581 40,636
Provision for loan losses 323 308 733 486
----------- ----------- ------------ ------------
Net interest income after
provision for loan losses 23,402 19,945 45,848 40,150
Noninterest income 10,539 9,353 23,889 19,256
Noninterest expense 18,862 16,498 37,403 32,388
----------- ----------- ------------ ------------
Net income before income taxes 15,079 12,800 32,334 27,018
Income tax expense 4,475 3,632 9,654 7,758
----------- ----------- ------------ ------------
Net income $ 10,604 $ 9,168 $ 22,680 $ 19,260
=========== =========== ============ ============
PER COMMON SHARE DATA
Net income - basic $ 0.51 $ 0.44 $ 1.10 $ 0.93
Net income - diluted 0.51 0.44 1.09 0.93
Cash dividends 0.28 0.26 0.54 0.49
Book value 13.24 12.07
Market value 33.84 31.45
Shares outstanding - end of period 20,697,633 20,659,208 20,697,633 20,659,208
Average outstanding shares - basic 20,692,904 20,654,191 20,688,637 20,649,600
Average outstanding shares - diluted 20,768,007 20,748,729 20,768,694 20,746,733
PERFORMANCE RATIOS
Return on average assets 1.76 % 1.77 % 1.90 % 1.85 %
Return on average equity 15.70 14.50 17.00 15.21
Net interest margin (tax equivalent) 4.53 4.51 4.52 4.51
Efficiency ratio 53.21 53.49 51.32 51.93
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
Quarter Ended
----------------------------------------------------------------------------------
2005 2004
---------------------------- ------------------------------------------------
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
----------- ----------- ----------- ------------- -------------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $ 14,409 $ 13,837 $ 13,680 $ 11,932 $ 11,792
Loans charged off (552) (390) (1,099) (331) (317)
Loan recoveries 143 187 185 147 149
----------- ----------- ----------- ------------- -------------
Net (charge-offs) recoveries (409) (203) (914) (184) (168)
Allowance established at acquisition - 365 457 1,400 -
Provision for loan losses 323 410 614 532 308
----------- ----------- ----------- ------------- -------------
Balance at end of period $ 14,323 $ 14,409 $ 13,837 $ 13,680 $ 11,932
=========== =========== =========== ============= =============
Allowance for loan losses /
period-end loans 1.20 % 1.20 % 1.19 % 1.21 % 1.18 %
Allowance for loan losses /
nonperforming loans 609.7 462.6 324.7 295.8 690.7
Net charge-offs / average loans
(annualized) 0.14 0.07 0.32 0.07 0.07
NONPERFORMING ASSETS
Nonaccrual loans $ 2,323 $ 3,112 $ 4,142 $ 4,564 $ 1,691
Accruing loans 90 days past due 26 3 120 60 36
----------- ----------- ----------- ------------- -------------
Total nonperforming loans 2,349 3,115 4,262 4,624 1,727
Foreclosed assets 838 1,138 779 514 798
----------- ----------- ----------- ------------- -------------
Total nonperforming assets $ 3,187 $ 4,253 $ 5,041 $ 5,138 $ 2,525
=========== =========== =========== ============= =============
As a % of loans and foreclosed assets 0.27 % 0.35 % 0.43 % 0.46 % 0.25 %
CAPITAL RATIOS
Tier 1 Risk-based 15.60 % 15.37 % 16.46 % 17.50 % 18.88 %
Total Risk-based 16.62 16.41 17.49 18.56 19.87
Tier 1 Leverage 9.08 8.94 9.80 10.46 10.95
Equity to assets 11.30 11.07 11.47 11.98 11.98
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ ---------------------------------
2005 2004 2005 2004
------------- ------------- --------------- ---------------
NONINTEREST INCOME
Net gain on sale of student loans 350 638 1,659 2,430
Net gain on sale of PULSE ownership rights 513 - 3,493 -
Net gain on securities transactions 143 - 184 18
Trust fees 1,709 1,514 3,424 3,089
Service charges on deposits 5,388 5,002 10,406 9,272
Real estate mortgage fees 510 551 922 975
ATM and credit card fees 1,224 951 2,347 1,826
Other noninterest income 702 697 1,454 1,646
------------- ------------- --------------- ---------------
Total Noninterest Income $ 10,539 $ 9,353 $ 23,889 $ 19,256
============= ============= =============== ===============
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ ---------------------------------
2005 2004 2005 2004
------------- ------------- --------------- ---------------
NONINTEREST EXPENSE
Salaries and Employee Benefits $ 10,113 $ 8,873 $ 19,992 $ 17,664
Net Occupancy Expense 1,257 1,044 2,413 2,042
Equipment Expense 1,487 1,422 2,973 2,837
Printing, Stationery and Supplies 495 429 1,016 840
ATM and Credit Card Expenses 711 534 1,391 1,084
Audit Fees 194 188 589 368
Professional Fees 493 399 1,082 657
Correspondent Bank Service Charges 363 398 746 782
Advertising and Public Relations 605 667 1,278 1,122
Amortization of Intangible Assets 176 34 279 68
Other Noninterest Expense 2,968 2,510 5,644 4,924
------------- ------------- --------------- ---------------
Total Noninterest Expense $ 18,862 $ 16,498 $ 37,403 $ 32,388
============= ============= =============== ===============
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ ---------------------------------
2005 2004 2005 2004
------------- ------------- --------------- ---------------
SELECTED AVERAGE BALANCES
Total Loans $ 1,190,654 $ 987,916 $ 1,198,017 $ 980,941
Investment Securities 965,693 925,455 926,266 923,186
Federal Funds Sold and Other Short Term Investments 52,313 6,338 61,864 18,634
------------- ------------- --------------- ---------------
Total Interest Earning Assets $ 2,208,660 $ 1,919,709 $ 2,186,147 $ 1,922,761
============= ============= =============== ===============
Interest Bearing Deposits $ 1,544,689 $ 1,308,827 $ 1,542,051 $ 1,317,680
Federal Funds Purchased and Repurchase Agreements 57,805 44,450 51,151 46,062
------------- ------------- --------------- ---------------
Total Interest Bearing Liabilities $ 1,602,494 $ 1,353,277 $ 1,593,202 $ 1,363,742
============= ============= =============== ===============
Shareholders' Equity $ 270,865 $ 254,307 $ 269,090 $ 254,596
============= ============= =============== ===============
Total Assets $ 2,415,348 $ 2,083,231 $ 2,401,965 $ 2,089,663
============= ============= =============== ===============