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First Financial Bankshares Inc. Reports Operating Results (10-Q)

July 29, 2010 | About:
10qk

10qk

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First Financial Bankshares Inc. (FFIN) filed Quarterly Report for the period ended 2010-06-30.

First Financial Bankshares Inc. has a market cap of $1.04 billion; its shares were traded at around $49.95 with a P/E ratio of 19.1 and P/S ratio of 5.3. The dividend yield of First Financial Bankshares Inc. stocks is 2.7%. First Financial Bankshares Inc. had an annual average earning growth of 7.5% over the past 10 years.FFIN is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Performance Summary. Net earnings for the second quarter of 2010 were $14.2 million compared to $13.6 million for the same period in 2009, or a 4.66% increase over the same period in 2009. Net earnings for the second quarter of 2010 compared to the same period in 2009 were negatively impacted by an increase in the provision for loan losses of $1.4 million and a decrease in net gain on securities transaction of $426 thousand. The negative impact was offset by a decrease in FDIC insurance premiums of $1.3 million, primarily due to the FDIC special assessment recorded in the second quarter of 2009.

Basic earnings per share for the second quarter of 2010 were $0.68 compared to $0.65 for the the same quarter last year. The return on average assets was 1.70% for the second quarter of 2010, as compared to 1.77% for the same quarter of 2009. The return on average equity was 13.37% for the second quarter of 2010 as compared to 13.98% for the same quarter of 2009.

Net earnings for the six-month period ended June 30, 2010 were $27.9 million, an increase of $645 thousand, or 2.4% compared to net earnings for the six-month period ended June 30, 2009 of $27.3 million. Net earnings for the six months ended June 30, 2010 compared to the same period in 2009 were negatively impacted by (i) a decrease in gain from sale of student loans of $616 thousand, (ii) an increase in the provision for loan losses of $1.6 million and (iii) a decrease in net gain on securities transactions of $675 thousand. The negative impact was offset by a decrease in FDIC insurance premiums of $1.3 million, primarily due to the FDIC special assessment recorded in the six month period of 2009.

Basic earnings per share basis, net earnings were $1.34 for the six-months of 2010 as compared to $1.31 for the same period of 2009. The return on average assets was 1.69% for the six-months of 2010, as compared to 1.76% for the same period of 2009. The return on average equity was 13.33% for the six-months of 2010, as compared to 14.28% for the same period of 2009.

Tax-equivalent net interest income was $36.1 million for the second quarter of 2010, as compared to $34.6 million for the same period last year. The increase in 2010 compared to 2009 was largely attributable to an increase in the volume of earning assets. Average earning assets increased $246.1 million for the second quarter of 2010 over the same period in 2009. Average short-term investments and average taxable securities increased $122.0 million and $64.9 million, respectively, for the second quarter of 2010 over the second quarter of 2009. Average interest bearing liabilities increased $172.4 million for the second quarter of 2010, as compared to the same period in 2009. The yield on earning assets decreased 33 basis points, whereas the rate paid on interest-bearing liabilities decreased only 22 basis points in the second quarter of 2010.

Tax-equivalent net interest income was $71.3 million for the first six-month period of 2010, as compared to $68.7 million for the same period last year. The increase in 2010 compared to 2009 was largely attributable to (i) the decrease in the rate paid on interest-bearing liabilities in an amount greater than the decrease in rates earned on interest earning assets and (ii) an increase in the volume of interest earning assets. Average interest earning assets increased $193.6 million for the first six-months of 2010 over the same period in 2009. Average short-term investments and average tax exempt securities increased $154.5 million and $42.2 million, respectively, for the first six-month period of 2010 over the first six-month period of 2009, offsetting a decrease of $21.7 million in average loans. Average interest bearing liabilities increased $121.2 million for the six-month period of 2010, as compared to the same period in 2009. The yield on earning assets decreased 31 basis points, whereas the rate paid on interest-bearing liabilities decreased only 26 basis points in the first six months of 2010, primarily due to the effects of lower interest rates.

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10qk
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