First Financial Bankshares Inc. (FFIN), a provider of commercial banking services, on Thursday reported a 4.7% increase in profit for the third quarter from last year that beat analysts' consensus estimate by a penny. The results for the quarter were aided by higher revenues. The Abilene, Texas-based company's net earnings for the third quarter was $13.99 million, or $0.67 per share, up 4.7% from $13.36 million, or $0.64 per share, in the same quarter last year. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income for the third quarter increased 3.8% to $32.58 million from $31.40 million in the year-ago period, while noninterest income improved 4.8% to $12.88 million from $12.29 million in the prior-year quarter. Analysts had a consensus revenue estimate for the quarter of $46.40 million. Noninterest income for the latest quarter includes $0.90 million from gains on securities transactions compared with $0.15 million in gains during the same quarter a year ago. Noninterest income also includes $0.27 million in pre-tax gain on the company's sale of substantially all of the remainder of its student loan portfolio to the U.S. Department of Education.
The net interest margin, on a taxable equivalent basis, increased to 4.92% from 4.73% in the same period a year ago. Provision for loan losses rose to $3.71 million from $1.77 million a year ago.
Scott Dueser, President and Chief Executive Officer of First Financial, said, "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. 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."
First Financial's noninterest expense for the quarter declined 1.6% to $23.02 million from $23.38 million in the year-ago period, although the company's FDIC insurance cost increased $0.66 million.
Return on average assets for the quarter was 1.81% compared to 1.74% in the same period last year. Return on average equity declined to 13.99% from 15.31% a year ago.
The bank's Tier 1 Risk-based ratio was 18.12% for the quarter compared to 15.41% in the year-ago quarter. Total risk-based ration was 19.37%, compared to 16.49% in the prior-year period.Nonperforming assets as a percentage of loans and foreclosed assets totaled 1.30% as at September 30, 2009, compared with 69 basis points a year ago.
For the first nine months of 2009, First Financial's net income increased 2.8% to $41.26 million from $40.13 million a year ago. On a per share basis, earnings increased to $1.98 from $1.93 in the prior-year period.
Net interest income increased 5.9% to $96.63 million from $91.25 million a year ago, while noninterest income declined to $36.54 million from $38.06 million in the year-ago period.
As of September 30, 2009, First Financial's consolidated assets were $3.08 billion, down compared to $3.15 billion a year ago. Loans at quarter-end totaled $1.45 billion, compared with loans of $1.57 billion a year ago. Total deposits as at the end of the quarter were $2.46 billion, compared with $2.56 billion a year earlier.
FFIN closed Thursday's regular trading session at $49.12, down $0.02 or 0.04% on a volume of 0.14 million shares.
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