First Financial Bankshares, Inc (FFIN) has reported 5.85 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $26.67 million, or $0.40 a share in the quarter, compared with $25.19 million, or $0.38 a share for the same period last year. Revenue during the quarter grew 4.32 percent to $76.26 million from $73.10 million in the previous year period. Net interest income for the quarter dropped 2.53 percent over the prior year period to $56.54 million. Non-interest income for the quarter rose 12.66 percent over the last year period to $21.72 million.
First Financial Bankshares, Inc has made provision of $1.99 million for loan losses during the quarter, down 52.29 percent from $4.18 million in the same period last year.
Net interest margin contracted 15 basis points to 4.01 percent in the quarter from 4.16 percent in the last year period. Efficiency ratio for the quarter deteriorated to 49.61 percent from 48.38 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
“We are pleased to report the 30th consecutive year of increased earnings for the Company despite continued low interest rates, commodity prices, and oil and gas prices,” said F. Scott Dueser, Chairman, President and Chief executive officer. “We continue to work hard to grow loans and deposits, reduce expenses to improve our bottom line while continuing to look for acquisition opportunities to better utilize our strong capital position and increase our return to our shareholders.”
Assets outpace liabilities growth
Total assets stood at $6,809.93 million as on Dec. 31, 2016, up 2.17 percent compared with $6,665.07 million on Dec. 31, 2015. On the other hand, total liabilities stood at $5,972.05 million as on Dec. 31, 2016, up 1.91 percent from $5,860.08 million on Dec. 31, 2015. Loans outpace deposit growthNet loans stood at $3,338.43 million as on Dec. 31, 2016, up 1.93 percent compared with $3,275.17 million on Dec. 31, 2015. Deposits stood at $5,478.54 million as on Dec. 31, 2016, up 5.56 percent compared with $5,190.17 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $1,717.72 million or 31.35 percent of total deposits on Dec. 31, 2016, compared with $1,745.95 million or 33.64 percent of total deposits on Dec. 31, 2015.
Investments stood at $2,860.96 million as on Dec. 31, 2016, up 4.64 percent or $126.78 million from year-ago. Shareholders equity stood at $837.88 million as on Dec. 31, 2016, up 4.09 percent or $32.90 million from year-ago.
Return on average assets moved up 6 basis points to 1.59 percent in the quarter from 1.53 percent in the last year period. At the same time, return on average equity decreased 10 basis points to 12.44 percent in the quarter from 12.54 percent in the last year period.
Nonperforming assets moved down 2.58 percent or $0.77 million to $29 million on Dec. 31, 2016 from $29.77 million on Dec. 31, 2015.
Capital ratios improve
First Financial Bankshares, Inc recorded an improvement in capital ratios during the quarter. Tier-1 leverage ratio stood at 10.71 percent for the quarter, up from 9.96 percent for the previous year quarter. Equity to assets ratio was 12.30 percent for the quarter, up from 12.08 percent for the previous year quarter. Book value per share was $12.68 for the quarter, up 3.93 percent or $0.48 compared to $12.20 for the same period last year.
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