Oct. 22, 2009 (PR Newswire) --
ABILENE, Texas, Oct. 22 /PRNewswire-FirstCall/ -- First Financial Bankshares, Inc. (Nasdaq: FFIN) today reported earnings for the third quarter of 2009 of $13.99 million, up 4.7 percent compared with earnings of $13.36 million in the same quarter last year. Basic earnings per share were $0.67 for the third quarter of 2009, up 4.7 percent from $0.64 a year ago.
Net interest income for the third quarter of 2009 increased 3.8 percent to $32.58 million compared with $31.40 million in the same quarter last year. The net interest margin, on a taxable equivalent basis, rose to 4.92 percent for the third quarter of 2009 compared with 4.73 percent in the same period a year ago and 4.88 percent for the quarter ended June 30, 2009. The provision for loan losses was $3.71 million in the third quarter of 2009, up from $1.77 million in the same quarter last year. Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.30 percent at September 30, 2009, compared with 95 basis points at June 30, 2009, and 69 basis points at September 30, 2008.
Noninterest income in the third quarter of 2009 was $12.88 million compared with $12.29 million in the same quarter a year earlier. Noninterest income for the third quarter of 2009 included $897,000 from gains on securities transactions compared with $146,000 in gains during the same quarter a year ago. Noninterest income for the third quarter of 2009 also included $273,000 in pre-tax gain on the sale of student loans, which resulted from the Company's sale of substantially all of the remainder of its student loan portfolio to the U.S. Department of Education.
Noninterest expense declined 1.6 percent in the third quarter of 2009 to $23.02 million from $23.38 million in the same quarter last year, although the Company's FDIC insurance cost increased $656,000. The Company's efficiency ratio in the third quarter of 2009 improved to 47.92 percent compared with 51.42 percent in the same quarter a year ago.
"We are pleased to report another quarter of earnings growth and improved net interest margin, especially in light of the national recession and low interest rate environment," said F. Scott Dueser, President and Chief Executive Officer. "Our bank presidents continue to do an exceptional job of managing our net interest margin and their banks. Nonperforming assets increased from previous quarters as the national recession becomes more prevalent in Texas; however, our percentage is favorable compared to our peers."
For the first nine months of 2009, net income increased 2.8 percent to $41.26 million from $40.13 million a year ago. Basic earnings per share rose to $1.98 for the first nine months of 2009 from $1.93 in the same period last year. Net interest income increased 5.9 percent in the first nine months of 2009 to $96.63 million from $91.25 million a year ago. The provision for loan losses increased $2.8 million to $7.05 million as the Company continued to aggressively address problem loans and the slowing economy. Noninterest income was $36.54 million for the first nine months of 2009 compared with $38.06 million in the same period a year earlier. Noninterest expense was $70.33 million in the first nine months of 2009 compared with $69.06 million for the comparable period a year ago.
As of September 30, 2009, consolidated assets for the Company totaled $3.08 billion compared with $3.15 billion a year ago. Loans totaled $1.45 billion at quarter end, compared with loans of $1.57 billion a year ago. Total deposits were $2.46 billion as of September 30, 2009, compared with $2.56 billion a year earlier. Shareholders' equity rose to $415.53 million as of September 30, 2009, compared with $350.42 million the prior year.
About First Financial Bankshares
Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that operates ten separately chartered banks with 48 locations in Texas. The bank subsidiaries are First Financial Bank, N.A., Abilene, Albany, Clyde and Moran; First Financial Bank, N.A., Eastland, Ranger and Rising Star; First Financial Bank, N.A., Cleburne, Burleson, Alvarado and Midlothian; First Financial Bank, Hereford; First Financial Bank, N.A., Mineral Wells; First Financial Bank, N.A., San Angelo; First Financial Bank, N.A., Southlake, Bridgeport, Boyd, Decatur, Keller and Trophy Club; First Financial Bank, N.A., Stephenville, Granbury, Glen Rose and Acton; First Financial Bank, N.A., Sweetwater, Roby, Trent and Merkel; and First Financial Bank, N.A., Weatherford, Willow Park, Aledo and Brock. The Company also operates First Financial Trust & Asset Management Company, N.A., with six locations and First Technology Services, Inc., a technology operating company.
The Company is listed on The NASDAQ Global Select 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.
