First Financial Bankshares (FFIN) Upgraded To Hold

Stifel Nicolaus analyst David J. Bishop upgraded First Financial Bankshares, Inc (Nasdaq: FFIN) from Sell to Hold after the company released its 4th quarter of 2009 results.

First Financial Bankshares trades at a premium to its banking peers and according to Bishop, "we believe this premium should continue to hold true and see the prospects for significant share price deterioration as diminished at this juncture."

"While asset quality suffered modest degradation, we note that problem asset levels remain at manageable levels upon which management believes they can improve," Bishop continued.

However, loan and deposit growth were both strong in the 4th quarter with loans up 4.1% and deposits up 9.2%, leading to the change of rating from Sell to Hold.