First Financial Bankshares posts 31st consecutive year of earnings increases
Staff Writer |
First Financial Bankshares reported earnings for the fourth quarter of 2017 of $36.14 million, up $9.48 million when compared with earnings of $26.67 million in the same quarter last year.
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Basic earnings per share were $0.55 for the fourth quarter of 2017 compared with $0.40 in the same quarter a year ago.
Of the $9.48 million increase in net income during the quarter when compared to the same quarter a year ago, $7.65 million resulted from the recent enactment of tax legislation that reduced the corporate tax rate from 35 percent to 21 percent.
This amount represents the net effect of the company's revaluation of its deferred tax assets and liabilities using the new tax rate. Without this adjustment, earnings for the quarter would have been $28.49 million with an adjusted basic earnings per share of $0.43.
Net interest income for the fourth quarter of 2017 was $60.89 million compared with $56.54 million in the same quarter of 2016.
The net interest margin, on a taxable equivalent basis, was 4.00 percent for the fourth quarter of 2017 compared to 3.94 percent in the third quarter of 2017 and 4.01 percent in the fourth quarter of 2016.
Included in interest income for the fourth quarter of 2017 was $439 thousand, or three basis points in net interest margin, related to discount accretion from fair value accounting related to the Conroe and Orange acquisitions.
Noninterest income increased 2.67 percent in the fourth quarter of 2017 to $22.30 million compared with $21.72 million in the same quarter a year ago.
Noninterest expense for the fourth quarter of 2017 totaled $44.10 million compared to $41.99 million in the fourth quarter of 2016.
For the year ended December 31, 2017, net income increased $15.60 million ($7.65 million was attributed to the change in the corporate tax rate) to $120.37 million from $104.77 million in 2016, marking 2017 as the 31st consecutive year of earnings increases for the company. ■