Form 8-K FIRST FINANCIAL BANKSHAR For: Jul 22

July 23, 2021 4:18 PM EDT

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Exhibit 99.1

 

For immediate release    For More Information:
     James R. Gordon, EVP & Chief Financial Officer
     325.627.7155

FIRST FINANCIAL BANKSHARES ANNOUNCES SECOND QUARTER 2021 EARNINGS

ABILENE, Texas, July 22, 2021 - First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2021 of $56.38 million compared to earnings of $53.47 million for the same quarter a year ago. Basic and diluted earnings per share were $0.40 and $0.39, respectively, for the second quarter of 2021 compared with $0.38 and $0.38 respectively, for the same quarter a year ago.

“During the second quarter, we produced strong operating results as we moved beyond the pandemic. As the economy in Texas continues to quickly recover from the pandemic, we were able to capitalize on the growth that we experienced over the past year. Our strong momentum produced net organic loan growth, excluding PPP loans, of $193.46 million for the quarter and $296.84 million year-to-date while customer deposits have grown $1.11 billion year-to-date. We will continue to build relationships, serve our communities across Texas, and remain focused on growth over the last half of 2021. We appreciate the continued support of our customers, shareholders and associates,” said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc.

Net interest income for the second quarter of 2021 was $90.95 million compared to $89.24 million for the second quarter of 2020. Average-earning assets increased to $11.30 billion for the second quarter of 2021 compared to $9.80 billion a year ago. The net interest margin, on a taxable equivalent basis, was 3.36 percent for the second quarter of 2021 compared to 3.78 percent in the second quarter of 2020. Our continued deposit growth produced higher levels of short-term liquidity and investment securities balances.

Information related to the Company’s Paycheck Protection Program (“PPP”) loans are included in the following table (dollars in thousands):

 

     PPP Loans Originated      PPP Amounts as of June 30, 2021  
     Number
of Loans
     Amount      Number
of Loans
     Period-End
Amount, Net
     Unamortized
Fees
     Recognized
Fees During the
Quarter Ended
June 30, 2021
 

PPP Round 1

     6,530      $ 703,450        724      $ 72,595      $ 1,107      $ 3,912  

PPP Round 2

     3,179        267,423        2,997        247,797        12,615        1,326  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

PPP Total

     9,709      $ 970,873        3,721      $ 320,392      $ 13,722      $ 5,238  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

PPP loan balances accounted for $482.00 million in average balances for the second quarter of 2021 compared to $499.35 million in the first quarter of 2021. Remaining unamortized fees continue to be amortized over the shorter of the repayment period or the contractual life of 24 to 60 months.


The Company recorded a negative provision for credit losses of $1.21 million for the second quarter of 2021 compared to a provision for credit losses of $8.70 million for the second quarter of 2020. The Company’s provision for credit losses for the second quarter of 2021 reflected the continued improvement in the economic outlook for our markets across Texas and overall improvements in asset quality.

For the second quarter of 2021, net recoveries totaled $203 thousand compared to net charge-offs of $193 thousand for the second quarter of 2020. At June 30, 2021, the allowance for credit losses totaled $62.14 million, or 1.17 percent of loans held-for-investment (“loans” hereafter), or 1.25 percent of loans, excluding PPP loans, compared to $68.95 million at June 30, 2020, or 1.31 percent of loans, or 1.52 percent of loans, excluding PPP loans. Additionally, the reserve for unfunded commitments totaled $6.75 million at June 30, 2021 compared to $809 thousand at June 30, 2020. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.57 percent at June 30, 2021, compared with 0.76 percent at June 30, 2020. Classified loans totaled $174.99 million at June 30, 2021, compared to $200.90 million at June 30, 2020.

Noninterest income in the second quarter of 2021 was $34.67 million compared to $36.92 million in the second quarter of 2020, as a result of the following:

 

   

Trust fees increased to $8.69 million in the second quarter of 2021 from $6.96 million in the second quarter of 2020. The fair value of trust assets managed increased to $8.06 billion at June 30, 2021 compared to $6.78 billion at June 30, 2020.

 

   

Service charges on deposits were $4.93 million in the second quarter of 2021 compared with $4.32 million in the second quarter of 2020.

 

   

ATM, interchange and credit card fees increased to $9.85 million in the second quarter of 2021 from $8.05 million in the second quarter of 2020, driven by continued growth in the number of debit cards issued and overall customer utilization.

 

   

Mortgage income was $8.29 million in the second quarter of 2021 compared to $13.68 million in the second quarter of 2020 due to lower overall pipeline volumes.

 

   

Gains on sales of securities and other assets totalled $80 thousand in the second quarter of 2021 compared to $1.54 million in the second quarter of 2020.

Noninterest expense for the second quarter of 2021 totaled $59.37 million compared to $53.32 million in the second quarter of 2020, as a result of the following:

 

   

Salary, commissions and employee benefit costs totaled $35.05 million for the second quarter of 2021, compared to $30.81 million in the second quarter of 2020. The increase over the prior year was primarily driven by the deferral of $3.62 million of PPP loan orgination costs during the quarter ended June 30, 2020 combined with increases effective March 1, 2021 from annual merit-based pay and incentive compensation during the quarter ended June 30, 2021.

The Company’s efficiency ratio was 45.94 percent for the second quarter of 2021 compared to 41.32 percent for the second quarter of 2020.

As of June 30, 2021, consolidated assets for the Company totaled $12.33 billion compared to $10.34 billion at June 30, 2020. Loans totaled $5.30 billion at June 30, 2021, compared with loans of $5.25 billion at June 30, 2020. Excluding PPP loans, loans have grown $434.26 million or 9.5 percent, from June 30, 2020 balances. Deposits totaled $9.78 billion at June 30, 2021, compared to $8.16 billion at June 30, 2020, driven by organic growth. Shareholders’ equity rose to $1.72 billion as of June 30, 2021, compared to $1.58 billion at June 30, 2020.


About First Financial Bankshares, Inc.

Headquartered in Abilene, Texas, First Financial Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 78 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Kingwood, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with ten locations and First Technology Services, Inc., a technology operating company.

The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at http://www.ffin.com.

####

Certain statements contained herein may be considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company’s management, as well as assumptions made beyond information currently available to the Company’s management, and may be, but not necessarily are, identified by such words as “expect”, “plan”, “anticipate”, “target”, “forecast” and “goal”. Because such “forward-looking statements” are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; economic impact of oil and gas prices and the pandemic, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company’s reports filed with the Securities and Exchange Commission, which may be obtained under “Investor Relations-Documents and Filings” on the Company’s Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.


FIRST FINANCIAL BANKSHARES, INC.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except share and per share data)

 

     As of  

ASSETS

   2021     2020  
   June 30,     Mar. 31,     Dec. 31,     Sept. 30,     June 30,  

Cash and due from banks

   $ 190,061     $ 190,350     $ 211,113     $ 175,088     $ 188,373  

Interest-bearing deposits in banks

     654,531       893,221       517,971       58,933       196,426  

Investment securities

     5,578,048       5,109,631       4,393,029       4,431,280       4,118,863  

Loans, held-for-investment, excluding PPP Loans

     4,984,210       4,790,752       4,687,370       4,589,948       4,549,950  

PPP Loans

     320,392       531,810       483,663       703,731       703,117  

Allowance for loan losses

     (62,138     (62,974     (66,534     (76,038     (68,947
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loans, held-for-investment

     5,242,464       5,259,588       5,104,499       5,217,641       5,184,120  

Loans, held-for-sale

     61,802       65,405       83,969       101,055       66,370  

Premises and equipment, net

     147,655       142,415       142,269       141,002       138,933  

Goodwill

     313,481       313,481       313,481       313,481       313,481  

Other intangible assets

     4,087       4,499       4,911       5,394       5,884  

Other assets

     136,954       124,297       133,258       123,778       127,367  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 12,329,083     $ 12,102,887     $ 10,904,500     $ 10,567,652     $ 10,339,817  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

          

Noninterest-bearing deposits

   $ 3,427,038     $ 3,350,145     $ 2,982,697     $ 2,950,407     $ 2,941,679  

Interest-bearing deposits

     6,354,656       6,063,302       5,693,120       5,344,481       5,215,963  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     9,781,694       9,413,447       8,675,817       8,294,888       8,157,642  

Borrowings

     549,969       548,604       430,093       503,163       449,224  

Trade Date Payable

     189,838       381,871       14,641       53,730       33,553  

Other liabilities

     87,213       93,537       105,759       96,370       116,949  

Shareholders' equity

     1,720,369       1,665,428       1,678,190       1,619,501       1,582,449  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders' equity

   $ 12,329,083     $ 12,102,887     $ 10,904,500     $ 10,567,652     $ 10,339,817  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Quarter Ended  

INCOME STATEMENTS

   2021     2020  
   June 30,     Mar. 31,     Dec. 31,     Sept. 30,     June 30,  

Interest income

   $ 92,602     $ 90,610     $ 92,457     $ 91,373     $ 92,197  

Interest expense

     1,653       1,786       1,920       2,163       2,962  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     90,949       88,824       90,537       89,210       89,235  

Provision for credit losses

     (1,206     (1,997     (8,033     9,000       8,700  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provisions for credit losses

     92,155       90,821       98,570       80,210       80,535  

Noninterest income

     34,673       34,874       35,709       38,575       36,919  

Noninterest expense

     59,374       57,723       63,705       55,593       53,321  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income before income taxes

     67,454       67,972       70,574       63,192       64,133  

Income tax expense

     11,075       11,054       12,099       10,335       10,663  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 56,379     $ 56,918     $ 58,475     $ 52,857     $ 53,470  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PER COMMON SHARE DATA

          

Net income—basic

   $ 0.40     $ 0.40     $ 0.41     $ 0.37     $ 0.38  

Net income—diluted

     0.39       0.40       0.41       0.37       0.38  

Cash dividends declared

     0.15       0.13       0.13       0.13       0.13  

Book value

     12.08       11.70       11.80       11.40       11.14  

Tangible book value

     9.85       9.47       9.57       9.15       8.89  

Market value

   $ 49.13     $ 46.73     $ 36.17     $ 27.91     $ 28.89  

Shares outstanding—end of period

     142,359,774       142,285,611       142,161,834       142,121,595       142,035,396  

Average outstanding shares—basic

     142,245,555       142,146,275       142,057,705       141,980,707       141,973,522  

Average outstanding shares—diluted

     143,164,611       143,002,658       142,644,088       142,529,242       142,454,083  

PERFORMANCE RATIOS

          

Return on average assets

     1.89     2.05     2.19     2.01     2.06

Return on average equity

     13.38       13.83       14.27       13.14       14.00  

Return on average tangible equity

     16.48       17.09       17.74       16.41       17.67  

Net interest margin (tax equivalent)

     3.36       3.55       3.75       3.75       3.78  

Efficiency ratio

     45.94       45.36       49.15       42.45       41.32  

 

INCOME STATEMENTS    Six Months Ended June 30,  
   2021     2020  

Interest income

   $ 183,212     $ 180,297  

Interest expense

     3,439       10,159  
  

 

 

   

 

 

 

Net interest income

     179,773       170,138  

Provision for loan losses

     (3,203     18,550  
  

 

 

   

 

 

 

Net interest income after provision for loan losses

     182,976       151,588  

Noninterest income

     69,548       65,651  

Noninterest expense

     117,098       108,640  
  

 

 

   

 

 

 

Net income before income taxes

     135,426       108,599  

Income tax expense

     22,129       17,898  
  

 

 

   

 

 

 

Net income

   $ 113,297     $ 90,701  
  

 

 

   

 

 

 

PER COMMON SHARE DATA

    

Net income—basic

   $ 0.80     $ 0.64  

Net income—diluted

     0.79       0.64  

Cash dividends declared

     0.28       0.25  

Book Value

     12.08       11.14  

Tangible book value

     9.85       8.89  

Market Value

   $ 49.13     $ 28.89  

Shares outstanding—end of period

     142,359,774       142,035,396  

Average outstanding shares—basic

     142,196,190       142,045,779  

Average outstanding shares—diluted

     143,102,608       142,519,308  

PERFORMANCE RATIOS

    

Return on average assets

     1.97     1.86

Return on average equity

     13.61       12.09  

Return on average tangible equity

     16.78       15.33  

Net interest margin (tax equivalent)

     3.45       3.84  

Efficiency ratio

     45.65       45.17  


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

     Quarter Ended  
ALLOWANCE FOR LOAN LOSSES    2021     2020  
   June 30,     Mar. 31,     Dec. 31,     Sept. 30,     June 30,  

Balance at beginning of period

   $ 62,974     $ 66,534     $ 76,038     $ 68,947     $ 60,440  

Loans charged off

     (392     (574     (1,339     (853     (894

Loan recoveries

     595       443       778       444       701  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net recoveries (charge-offs)

     203       (131     (561     (409     (193

Initial adoption of ASU 2016-13 (CECL)—recorded in retained earnings

     —         —         (619     —         —    

Reclassification of credit marks on purchased credit deteriorated (PCD) loans

     —         —         1,678       —         —    

Provision for loan losses

     (1,039     (3,429     (10,002     7,500       8,700  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at end of period

   $ 62,138     $ 62,974     $ 66,534     $ 76,038     $ 68,947  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ALLOWANCE FOR UNFUNDED COMMITMENTS

          

Balance at beginning of period

   $ 6,918     $ 5,486     $ 2,309     $ 809     $ 809  

Initial adoption of ASU 2016-13 (CECL)—recorded in retained earnings

     —         —         1,208       —         —    

Provision for unfunded commitments

     (167     1,432       1,969       1,500       —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at end of period

   $ 6,751     $ 6,918     $ 5,486     $ 2,309     $ 809  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for loan losses / period-end loans held-for-investment

     1.17     1.18     1.29     1.44     1.31

Allowance for loan losses / nonperforming loans

     208.45       160.00       155.61       177.99       174.83  

Net charge-offs (recoveries) / average total loans (annualized)

     (0.02     0.01       0.04       0.03       0.01  

SUMMARY OF LOAN CLASSIFICATION

          

Special Mention

   $ 54,497     $ 61,866     $ 56,585     $ 66,033     $ 63,489  

Substandard

     120,497       128,550       140,866       136,010       137,408  

Doubtful

     —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total classified loans

   $ 174,994     $ 190,416     $ 197,451     $ 202,043     $ 200,897  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NONPERFORMING ASSETS

          

Nonaccrual loans

   $ 29,786     $ 39,333     $ 42,619     $ 42,673     $ 39,320  

Accruing troubled debt restructured loans

     23       23       24       25       25  

Accruing loans 90 days past due

     —         2       113       23       92  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming loans

     29,809       39,358       42,756       42,721       39,437  

Foreclosed assets

     305       300       142       331       287  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets

   $ 30,114     $ 39,658     $ 42,898     $ 43,052     $ 39,724  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

As a        % of loans held-for-investment and foreclosed assets

     0.57     0.75     0.83     0.81     0.76

As a        % of end of period total assets

     0.24       0.33       0.39       0.41       0.38  

OIL AND GAS PORTFOLIO INFORMATION *

          

Oil and gas loans

   $ 103,166     $ 105,261     $ 106,237     $ 118,567     $ 128,143  

Oil and gas loans as a        % of total loans held-for-investment

     2.07     2.20     2.27     2.58     2.82

Classified oil and gas loans

     13,090       10,079       13,298       26,823       28,366  

Nonaccrual oil and gas loans

     3,986       4,759       4,774       6,800       3,702  

Net charge-offs for oil and gas loans

     59       40       24       —         195  

* Excluding PPP loans

          

RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *

          

Retail loans

   $ 326,409     $ 282,310     $ 216,244     $ 229,386     $ 216,244  

Restaurant loans

     56,997       51,772       48,618       39,523       46,418  

Hotel loans

     71,008       71,435       71,716       63,273       51,957  

Other hospitality loans

     27,929       24,014       21,970       26,041       23,230  

Travel loans

     790       664       780       801       908  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Retail/Restaurant/Hospitality loans

   $ 483,133     $ 430,195     $ 359,328     $ 359,024     $ 338,757  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Retail/Restaurant/Hospitality loans as a        % of total loans held-for-investment

     9.69     8.98     7.67     7.82     7.45

Classified Retail/Restaurant/Hospitality loans

   $ 43,635     $ 45,214     $ 31,192     $ 28,171     $ 15,837  

Nonaccrual Retail/Restaurant/Hospitality loans

     5,600       6,575       5,975       5,689       5,752  

Net Charge-offs for Retail/Restaurant/Hospitality loans

     —         —         561       26       178  

* Excluding PPP loans

          

CAPITAL RATIOS

          

Common equity Tier 1 capital ratio

     20.04     20.32     20.79     20.56     20.78

Tier 1 capital ratio

     20.04       20.32       20.79       20.56       20.78  

Total capital ratio

     21.12       21.47       22.03       21.82       22.03  

Tier 1 leverage ratio

     11.10       11.55       11.86       11.65       11.25  

Tangible common equity ratio

     11.75       12.35       12.71       12.61       12.00  

Equity/Assets ratio

     13.95       13.76       15.39       15.33       15.30  

 

     Quarter Ended  
NONINTEREST INCOME    2021      2020  
   June 30,      Mar. 31,      Dec. 31,      Sept. 30,     June 30,  

Trust fees

   $ 8,692      $ 8,299      $ 7,672      $ 7,461     $ 6,961  

Service charges on deposits

     4,928        4,793        5,330        5,009       4,318  

ATM, interchange and credit card fees

     9,853        8,677        8,376        8,644       8,049  

Gain on sale and fees on mortgage loans

     8,291        9,894        11,116        15,228       13,676  

Net gain on sale of available-for-sale securities

     5        808        23        36       1,512  

Net gain on sale of foreclosed assets

     1        55        87        19       52  

Net gain (loss) on sale of assets

     74        145        22        (2     (24

Interest on loan recoveries

     704        382        235        202       154  

Other noninterest income

     2,125        1,821        2,848        1,978       2,221  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total noninterest income

   $ 34,673      $ 34,874      $ 35,709      $ 38,575     $ 36,919  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

NONINTEREST EXPENSE

             

Salaries, commissions and employee benefits, excluding profit sharing

   $ 32,936      $ 32,636      $ 34,773      $ 32,104     $ 28,836  

Profit sharing expense

     2,110        2,295        6,245        1,545       1,978  

Net occupancy expense

     3,241        3,147        3,067        3,193       3,101  

Equipment expense

     2,177        2,164        2,154        2,157       2,010  

FDIC insurance premiums

     766        701        663        587       463  

ATM, interchange and credit card expenses

     3,039        2,772        2,811        2,829       2,610  

Legal, tax and professional fees

     3,352        2,726        2,302        2,615       2,931  

Audit fees

     430        440        407        526       739  

Printing, stationery and supplies

     489        325        449        615       533  

Amortization of intangible assets

     412        412        483        490       508  

Advertising and public relations

     1,392        1,388        1,600        797       1,011  

Operational and other losses

     534        287        537        621       728  

Software amortization and expense

     2,829        2,619        2,563        2,265       2,010  

Other noninterest expense

     5,667        5,811        5,651        5,249       5,863  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total noninterest expense

   $ 59,374      $ 57,723      $ 63,705      $ 55,593     $ 53,321  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

TAX EQUIVALENT YIELD ADJUSTMENT

   $ 3,633      $ 3,547      $ 3,355      $ 3,170     $ 2,902  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     Six Months Ended  
NONINTEREST INCOME    June 30,  
   2021      2020  

Trust fees

   $ 16,991      $ 14,398  

Service charges on deposits

     9,721        10,233  

ATM, interchange and credit card fees

     18,530        15,449  

Gain on sale and fees on mortgage loans

     18,185        17,528  

Net gain (loss) on sale of available-for-sale securities

     813        3,574  

Net gain (loss) on sale of foreclosed assets

     56        53  

Net gain (loss) on sale of assets

     219        92  

Interest on loan recoveries

     1,086        419  

Other noninterest income

     3,947        3,905  
  

 

 

    

 

 

 

Total noninterest income

   $ 69,548      $ 65,651  
  

 

 

    

 

 

 

NONINTEREST EXPENSE

     

Salaries, commissions and employee benefits, excluding profit sharing

   $ 65,572      $ 57,506  

Profit sharing expense

     4,405        2,950  

Net occupancy expense

     6,388        6,128  

Equipment expense

     4,341        4,085  

FDIC insurance premiums

     1,467        508  

ATM, interchange and credit card expenses

     5,811        5,595  

Legal, tax and professional fees

     6,078        5,852  

Audit fees

     870        1,150  

Printing, stationery and supplies

     814        1,099  

Amortization of intangible assets

     824        1,017  

Advertising and public relations

     2,780        2,206  

Operational and other losses

     821        1,304  

Software amortization and expense

     5,448        4,034  

Other noninterest expense

     11,479        15,206  
  

 

 

    

 

 

 

Total noninterest expense

   $ 117,098      $ 108,640  
  

 

 

    

 

 

 

TAX EQUIVALENT YIELD ADJUSTMENT

   $ 7,180      $ 4,735  
  

 

 

    

 

 

 


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

     Three Months Ended     Three Months Ended  
     June 30, 2021     Mar. 31, 2021  
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
    Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                

Federal funds sold

   $ 3,049      $ 4        0.54   $ 1,942      $ 3        0.58

Interest-bearing deposits in nonaffiliated banks

     796,835        211        0.11       637,129        159        0.10  

Taxable securities

     2,656,211        11,449        1.72       2,251,419        10,264        1.82  

Tax exempt securities

     2,461,924        17,410        2.83       2,368,615        16,979        2.87  

Loans

     5,383,781        67,161        5.00       5,296,149        66,753        5.11  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     11,301,800      $ 96,235        3.42     10,555,254      $ 94,158        3.62

Noninterest-earning assets

     692,282             700,550        
  

 

 

         

 

 

       

Total assets

   $ 11,994,082           $ 11,255,804        
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Deposits

   $ 6,229,991      $ 1,560        0.10   $ 5,916,237      $ 1,696        0.12

Borrowings

     527,669        93        0.07       456,620        91        0.08  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     6,757,660      $ 1,653        0.10     6,372,857      $ 1,787        0.11

Noninterest-bearing liabilities

     3,546,677             3,214,237        

Shareholders' equity

     1,689,745             1,668,710        
  

 

 

         

 

 

       

Total liabilities and shareholders' equity

   $ 11,994,082           $ 11,255,804        
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income and margin (tax equivalent)

      $ 94,582        3.36      $ 92,371        3.55
     

 

 

    

 

 

      

 

 

    

 

 

 

 

     Three Months Ended     Three Months Ended  
     Dec. 31, 2020     Sept. 30, 2020  
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
    Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                

Federal funds sold

   $ —        $ —          —     $ 2,009      $ 3        0.51

Interest-bearing deposits in nonaffiliated banks

     195,637        50        0.10       223,104        59        0.10  

Taxable securities

     2,086,419        10,708        2.05       2,187,547        12,063        2.21  

Tax exempt securities

     2,318,912        16,733        2.89       2,058,032        15,737        3.06  

Loans

     5,356,229        68,321        5.07       5,334,174        66,681        4.97  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     9,957,197      $ 95,812        3.83     9,804,866      $ 94,543        3.84

Noninterest-earning assets

     674,229             671,374        
  

 

 

         

 

 

       

Total assets

   $ 10,631,426           $ 10,476,240        
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Deposits

   $ 5,479,873      $ 1,826        0.13   $ 5,270,600      $ 2,064        0.16

Borrowings

     428,117        94        0.09       482,555        99        0.08  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     5,907,990      $ 1,920        0.13     5,753,155      $ 2,163        0.15

Noninterest-bearing liabilities

     3,093,637             3,122,995        

Shareholders' equity

     1,629,799             1,600,090        
  

 

 

         

 

 

       

Total liabilities and shareholders' equity

   $ 10,631,426           $ 10,476,240        
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income and margin (tax equivalent)

      $ 93,892        3.75      $ 92,380        3.75
     

 

 

    

 

 

      

 

 

    

 

 

 

 

     Three Months Ended  
     June 30, 2020  
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

        

Federal funds sold

   $ 840      $ 1        0.51

Interest-bearing deposits in nonaffiliated banks

     352,628        86        0.10  

Taxable securities

     2,399,364        14,030        2.34  

Tax exempt securities

     1,800,339        14,733        3.27  

Loans

     5,248,052        66,249        5.08  
  

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     9,801,223      $ 95,099        3.90

Noninterest-earning assets

     663,595        
  

 

 

       

Total assets

   $ 10,464,818        
  

 

 

       

Interest-bearing liabilities:

        

Deposits

   $ 5,135,772      $ 2,550        0.20

Borrowings

     877,076        412        0.19  
  

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     6,012,848      $ 2,962        0.20

Noninterest-bearing liabilities

     2,915,461        

Shareholders' equity

     1,536,509        
  

 

 

       

Total liabilities and shareholders' equity

   $ 10,464,818        
  

 

 

    

 

 

    

Net interest income and margin (tax equivalent)

      $ 92,137        3.78
     

 

 

    

 

 

 

 

     Six Months Ended     Six Months Ended  
     June 30, 2021     June 30, 2020  
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
    Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                

Federal funds sold

   $ 2,499      $ 7        0.56   $ 1,776      $ 11        1.26

Interest-bearing deposits in nonaffiliated banks

     717,423        370        0.10       290,469        831        0.58  

Taxable securities

     2,454,933        21,712        1.77       2,331,347        28,685        2.46  

Tax exempt securities

     2,415,527        34,389        2.85       1,573,591        25,933        3.30  

Loans

     5,340,207        133,914        5.06       4,957,744        129,572        5.26  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     10,930,589      $ 190,392        3.51     9,154,927      $ 185,032        4.06

Noninterest-earning assets

     696,393             674,311        
  

 

 

         

 

 

       

Total assets

   $ 11,626,982           $ 9,829,238        
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Deposits

   $ 6,073,981      $ 3,255        0.11   $ 5,019,929      $ 9,231        0.37

Borrowings

     492,341        184        0.08       668,840        928        0.28  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     6,566,322      $ 3,439        0.11     5,688,769      $ 10,159        0.36

Noninterest-bearing liabilities

     3,381,374             2,631,974        

Shareholders' equity

     1,679,286             1,508,495        
  

 

 

         

 

 

       

Total liabilities and shareholders' equity

   $ 11,626,982           $ 9,829,238        
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income and margin (tax equivalent)

      $ 186,953        3.45      $ 174,873        3.84
     

 

 

    

 

 

      

 

 

    

 

 

 


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