FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2022 EARNINGS
ABILENE, Texas, Oct. 20, 2022 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company") (NASDAQ: FFIN) today reported earnings of $59.34 million for the third quarter of 2022 compared to earnings of $58.93 million for the same quarter a year ago. Diluted earnings per share were $0.41 for both the third quarter of 2022 and 2021. As of September 30, 2022, the Company has 4.75 million shares remaining under the previously announced share repurchase authorization. Through September 30, 2022, the Company has repurchased 244,559 shares of its common stock at an average price of $38.61.
As further described below, the results this quarter compared to the same quarter a year ago included an increase in net interest income of $7.37 million from continued balance sheet growth. Included in the change in net interest income was a decline in PPP loan origination fees and interest of $8.19 million when compared to the same period a year ago. Additionally, the results this quarter when compared to the same quarter a year ago were impacted by (i) an increase in the provision for credit losses of $3.22 million; (ii) a decrease in interest on loan recoveries of $1.08 million; (iii) a decrease in debit card fees of $3.61 million; and (iv) a decrease in mortgage revenues of $4.72 million.
"During the third quarter, we continued our momentum, driven by our focus on customer service excellence in our vibrant Texas markets, that produced strong loan growth while maintaining deposits. Our operating results for the third quarter reflect overall loan growth, excluding PPP and held-for-sale loans, of $379 million, or 25.6 percent annualized, and deposit growth of $19.14 million through the addition of over 9,300 net new accounts year-to-date," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. "We have strong capital as reflected by our regulatory capital ratios being well above required levels while maintaining combined allowances for credit losses and unfunded commitments totaling $84.99 million. We remain focused on serving our customers and delivering solid results while actively managing the impact of the current interest rate, regulatory and economic environments. We appreciate the continued support of our customers, shareholders and associates," Mr. Dueser added.
Net interest income for the third quarter of 2022 was $103.16 million compared to $95.78 million for the third quarter of 2021. The net interest margin, on a taxable equivalent basis, was 3.32 percent for the third quarter of 2022, compared to 3.28 percent for the second quarter of 2022, and 3.41 percent in the third quarter of 2021. The growth in net interest income was driven by higher average interest-earning assets which increased to $12.54 billion for the third quarter of 2022 compared to $11.58 billion a year ago, partially offset by lower PPP loan origination fees and interest which totaled $62 thousand in the third quarter of 2022 compared to $8.25 million in the third quarter of 2021. PPP loan balances totaled $202 thousand at September 30, 2022.
The Company recorded a provision for credit losses of $3.22 million for the third quarter of 2022 compared to no provision for credit losses for the third quarter of 2021. The Company's provision for credit losses during the third quarter of 2022 was primarily driven by strong organic loan growth, increases in unfunded commitments and a slight decline in the projected economic forecast metrics offset by loan recoveries and lower classified loan specific reserves. At September 30, 2022, the allowance for credit losses totaled $74.11 million, or 1.18 percent of loans held-for-investment ("loans" hereafter), compared to $63.37 million at September 30, 2021, or 1.20 percent of loans. Additionally, the reserve for unfunded commitments totaled $10.88 million at September 30, 2022 compared to $6.75 million at September 30, 2021.
For the third quarter of 2022, net recoveries totaled $1.12 million compared to net recoveries of $1.23 million for the third quarter of 2021. Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.39 percent at September 30, 2022, compared with 0.48 percent at September 30, 2021. Classified loans totaled $143.72 million at September 30, 2022, compared with $165.77 million at September 30, 2021.
Noninterest income for the third quarter of 2022 totaled $30.94 million compared to $37.73 million for the third quarter of 2021, as a result of the following:
- Trust fees increased to $10.31 million for the third quarter of 2022 compared to $9.48 million for the third quarter of 2021 driven mainly by the continued increase in oil and gas revenue.
- Service charges on deposits increased to $6.40 million for the third quarter of 2022 compared to $5.67 million for the third quarter of 2021 primarily due to the continued increase in net new accounts.
- Debit card fees decreased by $3.61 million for the third quarter of 2022 compared to the same quarter a year ago and $4.28 million from the second quarter of 2022. The decreases were due the impact of becoming subject to regulations imposed by the Federal Reserve that limits debit card interchange revenue ("Durbin Amendment") effective July 1, 2022, and is consistent with our prior disclosures.
- Mortgage income was $4.07 million for the third quarter of 2022 compared to $8.79 million for the third quarter of 2021 due to lower overall origination volumes and margins as a result of the changes in interest rates.
- Recoveries of interest on previously charged-off or nonaccrual loans totaled $664 thousand for the third quarter of 2022 compared to $1.75 million for the third quarter of 2021.
- Gains on sales of securities and other assets were $1.21 million during the third quarter of 2022 compared to $22 thousand for the third quarter of 2021.
Noninterest expense for the third quarter of 2022 totaled $59.44 million compared to $62.94 million for the third quarter of 2021, as a result of the following:
- Salary, commissions, and employee benefit costs totaled $33.89 million for the third quarter of 2022, compared to $37.09 million in the third quarter of 2021 reflecting annual merit-based and market driven pay increases offset by lower mortgage compensation expenses of $1.26 million and a decrease of $1.87 million in profit sharing expenses.
The Company's efficiency ratio improved to 43.76 percent for the third quarter of 2022 compared to 45.88 percent for the third quarter of 2021.
As of September 30, 2022, consolidated total assets were $13.11 billion compared to $12.54 billion at September 30, 2021. Loans totaled $6.26 billion at September 30, 2022, compared with loans of $5.29 billion at September 30, 2021. Loans, excluding PPP and held-for-sale loans, grew $379.00 million during the third quarter of 2022 and $919.11 million for the first nine months of 2022. Deposits totaled $11.14 billion at September 30, 2022, compared to $9.89 billion at September 30, 2021.
Shareholders' equity was $1.13 billion as of September 30, 2022, compared to $1.33 billion and $1.73 billion at June 30, 2022, and September 30, 2021, respectively, as a result of changes in other comprehensive income ("OCI") due to increasing interest rates over the last nine months. The unrealized loss on the available-for-sale investment securities portfolio, net of applicable tax, totaled $632.42 million at September 30, 2022, compared to an unrealized loss of $400.51 million at June 30, 2022, and an unrealized gain of $109.45 million at September 30, 2021.
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 https://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 |
|||||||||||||||
2022 |
2021 |
||||||||||||||
ASSETS |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||
Cash and due from banks |
$ |
227,298 |
$ |
242,665 |
$ |
203,187 |
$ |
205,053 |
$ |
201,901 |
|||||
Interest-bearing demand deposits in banks |
138,484 |
222,899 |
394,566 |
323,535 |
359,241 |
||||||||||
Investment securities |
5,745,443 |
6,215,036 |
6,502,495 |
6,573,179 |
6,119,984 |
||||||||||
Loans, held-for-investment, excluding PPP Loans |
6,255,286 |
5,876,281 |
5,550,430 |
5,336,179 |
5,147,160 |
||||||||||
PPP loans |
202 |
2,301 |
15,739 |
52,793 |
139,334 |
||||||||||
Total loans, held-for-investment |
6,255,488 |
5,878,582 |
5,566,169 |
5,388,972 |
5,286,494 |
||||||||||
Allowance for credit losses |
(74,108) |
(71,932) |
(66,913) |
(63,465) |
(63,370) |
||||||||||
Net loans, held-for-investment |
6,181,380 |
5,806,650 |
5,499,256 |
5,325,507 |
5,223,124 |
||||||||||
Loans, held-for-sale |
18,815 |
26,445 |
27,670 |
37,810 |
47,721 |
||||||||||
Premises and equipment, net |
152,646 |
149,280 |
150,168 |
149,764 |
147,516 |
||||||||||
Goodwill |
313,481 |
313,481 |
313,481 |
313,481 |
313,481 |
||||||||||
Other intangible assets |
2,352 |
2,658 |
2,978 |
3,298 |
3,689 |
||||||||||
Other assets |
330,445 |
281,098 |
220,399 |
170,834 |
126,601 |
||||||||||
Total assets |
$ |
13,110,344 |
$ |
13,260,212 |
$ |
13,314,200 |
$ |
13,102,461 |
$ |
12,543,258 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||
Noninterest-bearing deposits |
$ |
4,200,792 |
$ |
4,104,034 |
$ |
3,978,724 |
$ |
3,780,230 |
$ |
3,574,405 |
|||||
Interest-bearing deposits |
6,941,326 |
7,018,949 |
7,021,101 |
6,786,258 |
6,318,712 |
||||||||||
Total deposits |
11,142,118 |
11,122,983 |
10,999,825 |
10,566,488 |
9,893,117 |
||||||||||
Borrowings |
774,581 |
768,364 |
758,595 |
671,152 |
648,679 |
||||||||||
Trade date payable |
- |
- |
- |
- |
174,236 |
||||||||||
Other liabilities |
61,030 |
39,847 |
67,031 |
105,597 |
93,491 |
||||||||||
Shareholders' equity |
1,132,615 |
1,329,018 |
1,488,749 |
1,759,224 |
1,733,735 |
||||||||||
Total liabilities and shareholders' equity |
$ |
13,110,344 |
$ |
13,260,212 |
$ |
13,314,200 |
$ |
13,102,461 |
$ |
12,543,258 |
|||||
Quarter Ended |
|||||||||||||||
2022 |
2021 |
||||||||||||||
INCOME STATEMENTS |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||
Interest income |
$ |
112,728 |
$ |
101,981 |
$ |
97,009 |
$ |
95,995 |
$ |
97,198 |
|||||
Interest expense |
9,572 |
3,199 |
1,570 |
1,187 |
1,416 |
||||||||||
Net interest income |
103,156 |
98,782 |
95,439 |
94,808 |
95,782 |
||||||||||
Provision for credit losses |
3,221 |
5,350 |
4,782 |
2,064 |
- |
||||||||||
Net interest income after provision for credit losses |
99,935 |
93,432 |
90,657 |
92,744 |
95,782 |
||||||||||
Noninterest income |
30,943 |
37,317 |
34,881 |
34,903 |
37,726 |
||||||||||
Noninterest expense |
59,442 |
58,333 |
59,225 |
61,672 |
62,939 |
||||||||||
Net income before income taxes |
71,436 |
72,416 |
66,313 |
65,975 |
70,569 |
||||||||||
Income tax expense |
12,095 |
11,922 |
10,341 |
10,638 |
11,641 |
||||||||||
Net income |
$ |
59,341 |
$ |
60,494 |
$ |
55,972 |
$ |
55,337 |
$ |
58,928 |
|||||
PER COMMON SHARE DATA |
|||||||||||||||
Net income - basic |
$ |
0.42 |
$ |
0.42 |
$ |
0.39 |
$ |
0.39 |
$ |
0.41 |
|||||
Net income - diluted |
0.41 |
0.42 |
0.39 |
0.39 |
0.41 |
||||||||||
Cash dividends declared |
0.17 |
0.17 |
0.15 |
0.15 |
0.15 |
||||||||||
Book value |
7.94 |
9.32 |
10.43 |
12.34 |
12.17 |
||||||||||
Tangible book value |
5.73 |
7.10 |
8.21 |
10.12 |
9.94 |
||||||||||
Market value |
41.83 |
39.27 |
44.12 |
50.84 |
45.95 |
||||||||||
Shares outstanding - end of period |
142,628,163 |
142,586,601 |
142,704,495 |
142,532,116 |
142,467,687 |
||||||||||
Average outstanding shares - basic |
142,524,500 |
142,682,251 |
142,558,743 |
142,437,804 |
142,334,449 |
||||||||||
Average outstanding shares - diluted |
143,126,088 |
143,238,669 |
143,302,063 |
143,251,521 |
143,218,920 |
||||||||||
PERFORMANCE RATIOS |
|||||||||||||||
Return on average assets |
1.76 |
% |
1.82 |
% |
1.71 |
% |
1.74 |
% |
1.90 |
% |
|||||
Return on average equity |
17.31 |
17.26 |
13.53 |
12.63 |
13.43 |
||||||||||
Return on average tangible equity |
22.55 |
22.27 |
16.68 |
15.45 |
16.43 |
||||||||||
Net interest margin (tax equivalent) |
3.32 |
3.28 |
3.22 |
3.29 |
3.41 |
||||||||||
Efficiency ratio |
43.76 |
41.83 |
44.16 |
46.18 |
45.88 |
||||||||||
Nine Months Ended |
|||||||||||||||
Sept. 30, |
|||||||||||||||
INCOME STATEMENTS |
2022 |
2021 |
|||||||||||||
Interest income |
$ |
311,718 |
$ |
280,410 |
|||||||||||
Interest expense |
14,340 |
4,855 |
|||||||||||||
Net interest income |
297,378 |
275,555 |
|||||||||||||
Provision for credit losses |
13,353 |
(3,203) |
|||||||||||||
Net interest income after provision for credit losses |
284,025 |
278,758 |
|||||||||||||
Noninterest income |
103,141 |
107,273 |
|||||||||||||
Noninterest expense |
177,000 |
180,036 |
|||||||||||||
Net income before income taxes |
210,166 |
205,995 |
|||||||||||||
Income tax expense |
34,359 |
33,770 |
|||||||||||||
Net income |
$ |
175,807 |
$ |
172,225 |
|||||||||||
PER COMMON SHARE DATA |
|||||||||||||||
Net income - basic |
$ |
1.23 |
$ |
1.21 |
|||||||||||
Net income - diluted |
1.23 |
1.20 |
|||||||||||||
Cash dividends declared |
0.49 |
0.43 |
|||||||||||||
Book value |
7.94 |
12.17 |
|||||||||||||
Tangible book value |
5.73 |
9.94 |
|||||||||||||
Market value |
$ |
41.83 |
$ |
45.95 |
|||||||||||
Shares outstanding - end of period |
142,628,163 |
142,467,687 |
|||||||||||||
Average outstanding shares - basic |
142,588,373 |
142,242,783 |
|||||||||||||
Average outstanding shares - diluted |
143,246,768 |
143,183,792 |
|||||||||||||
PERFORMANCE RATIOS |
|||||||||||||||
Return on average assets |
1.77 |
% |
1.94 |
% |
|||||||||||
Return on average equity |
15.88 |
13.55 |
|||||||||||||
Return on average tangible equity |
20.20 |
16.66 |
|||||||||||||
Net interest margin (tax equivalent) |
3.27 |
3.43 |
|||||||||||||
Efficiency ratio |
43.23 |
45.73 |
|||||||||||||
FIRST FINANCIAL BANKSHARES, INC. |
|||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||||||||||||
(In thousands) |
|||||||||||||||
Quarter Ended |
|||||||||||||||
2022 |
2021 |
||||||||||||||
ALLOWANCE FOR LOAN LOSSES |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||
Balance at beginning of period |
$ |
71,932 |
$ |
66,913 |
$ |
63,465 |
$ |
63,370 |
$ |
62,138 |
|||||
Loans charged-off |
(293) |
(275) |
(659) |
(3,067) |
(1,475) |
||||||||||
Loan recoveries |
1,409 |
1,191 |
360 |
783 |
2,707 |
||||||||||
Net recoveries (charge-offs) |
1,116 |
916 |
(299) |
(2,284) |
1,232 |
||||||||||
Provision for loan losses |
1,060 |
4,103 |
3,747 |
2,379 |
- |
||||||||||
Balance at end of period |
$ |
74,108 |
$ |
71,932 |
$ |
66,913 |
$ |
63,465 |
$ |
63,370 |
|||||
ALLOWANCE FOR UNFUNDED COMMITMENTS |
|||||||||||||||
Balance at beginning of period |
$ |
8,718 |
$ |
7,471 |
$ |
6,436 |
$ |
6,751 |
$ |
6,751 |
|||||
Provision for unfunded commitments |
2,161 |
1,247 |
1,035 |
(315) |
- |
||||||||||
Balance at end of period |
$ |
10,879 |
$ |
8,718 |
$ |
7,471 |
$ |
6,436 |
$ |
6,751 |
|||||
Allowance for loan losses / |
|||||||||||||||
period-end loans held-for-investment |
1.18 |
% |
1.22 |
% |
1.20 |
% |
1.18 |
% |
1.20 |
% |
|||||
Allowance for loan losses / |
|||||||||||||||
nonperforming loans |
301.02 |
281.90 |
232.71 |
200.33 |
250.92 |
||||||||||
Net charge-offs (recoveries) / average total loans |
|||||||||||||||
(annualized) |
(0.07) |
(0.06) |
0.02 |
0.17 |
(0.09) |
||||||||||
Quarter Ended |
|||||||||||||||
2022 |
2021 |
||||||||||||||
COMPOSITION OF LOANS HELD-FOR-INVESTMENT |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||
Commercial: |
|||||||||||||||
C&I |
$ |
871,133 |
$ |
837,627 |
$ |
822,310 |
$ |
784,282 |
$ |
680,263 |
|||||
PPP |
202 |
2,301 |
15,739 |
52,793 |
139,334 |
||||||||||
Municipal |
214,852 |
200,577 |
191,799 |
177,905 |
165,847 |
||||||||||
Total Commercial |
1,086,187 |
1,040,505 |
1,029,848 |
1,014,980 |
985,444 |
||||||||||
Agricultural |
76,937 |
90,420 |
82,883 |
98,089 |
98,947 |
||||||||||
Real Estate: |
|||||||||||||||
Construction & Development |
938,051 |
928,644 |
806,211 |
749,793 |
656,530 |
||||||||||
Farm |
268,139 |
250,028 |
225,942 |
217,220 |
203,064 |
||||||||||
Non-Owner Occupied CRE |
717,738 |
636,432 |
636,160 |
623,434 |
674,958 |
||||||||||
Owner Occupied CRE |
945,665 |
909,899 |
881,181 |
821,653 |
824,231 |
||||||||||
Residential |
1,536,180 |
1,412,125 |
1,352,162 |
1,334,419 |
1,328,798 |
||||||||||
Total Real Estate |
4,405,773 |
4,137,128 |
3,901,656 |
3,746,519 |
3,687,581 |
||||||||||
Consumer: |
|||||||||||||||
Auto |
538,798 |
468,147 |
419,818 |
405,416 |
394,072 |
||||||||||
Non-Auto |
147,793 |
142,382 |
131,964 |
123,968 |
120,450 |
||||||||||
Total Consumer |
686,591 |
610,529 |
551,782 |
529,384 |
514,522 |
||||||||||
Total loans held-for-investment |
$ |
6,255,488 |
$ |
5,878,582 |
$ |
5,566,169 |
$ |
5,388,972 |
$ |
5,286,494 |
|||||
SUMMARY OF LOAN CLASSIFICATION |
|||||||||||||||
Special Mention |
$ |
43,149 |
$ |
46,512 |
$ |
47,445 |
$ |
55,670 |
$ |
53,620 |
|||||
Substandard |
100,568 |
106,156 |
104,715 |
105,515 |
112,151 |
||||||||||
Doubtful |
- |
- |
- |
- |
- |
||||||||||
Total classified loans |
$ |
143,717 |
$ |
152,668 |
$ |
152,160 |
$ |
161,185 |
$ |
165,771 |
|||||
NONPERFORMING ASSETS |
|||||||||||||||
Nonaccrual loans |
$ |
24,585 |
$ |
25,475 |
$ |
28,723 |
$ |
31,652 |
$ |
25,210 |
|||||
Accruing troubled debt restructured loans |
19 |
20 |
20 |
21 |
22 |
||||||||||
Accruing loans 90 days past due |
15 |
22 |
11 |
8 |
23 |
||||||||||
Total nonperforming loans |
24,619 |
25,517 |
28,754 |
31,681 |
25,255 |
||||||||||
Foreclosed assets |
- |
- |
- |
2,477 |
28 |
||||||||||
Total nonperforming assets |
$ |
24,619 |
$ |
25,517 |
$ |
28,754 |
$ |
34,158 |
$ |
25,283 |
|||||
As a % of loans held-for-investment and foreclosed assets |
0.39 |
% |
0.43 |
% |
0.52 |
% |
0.63 |
% |
0.48 |
% |
|||||
As a % of end of period total assets |
0.19 |
0.19 |
0.22 |
0.26 |
0.20 |
||||||||||
Quarter Ended |
|||||||||||||||
2022 |
2021 |
||||||||||||||
CAPITAL RATIOS |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||
Common equity Tier 1 capital ratio |
18.03 |
% |
18.50 |
% |
19.00 |
% |
19.35 |
% |
19.71 |
% |
|||||
Tier 1 capital ratio |
18.03 |
18.50 |
19.00 |
19.35 |
19.71 |
||||||||||
Total capital ratio |
19.07 |
19.54 |
20.01 |
20.34 |
20.76 |
||||||||||
Tier 1 leverage ratio |
10.79 |
10.65 |
10.78 |
11.13 |
11.19 |
||||||||||
Tangible common equity ratio |
6.38 |
7.83 |
9.02 |
11.28 |
11.59 |
||||||||||
Equity/Assets ratio |
8.64 |
10.02 |
11.18 |
13.43 |
13.82 |
||||||||||
Quarter Ended |
|||||||||||||||
2022 |
2021 |
||||||||||||||
NONINTEREST INCOME |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||
Trust fees |
$ |
10,314 |
$ |
9,742 |
$ |
9,817 |
$ |
9,670 |
$ |
9,484 |
|||||
Service charges on deposits |
6,399 |
6,038 |
5,706 |
5,762 |
5,673 |
||||||||||
Debit card fees |
5,587 |
9,868 |
8,926 |
9,353 |
9,198 |
||||||||||
Credit card fees |
651 |
700 |
602 |
602 |
595 |
||||||||||
Gain on sale and fees on mortgage loans |
4,070 |
5,728 |
6,333 |
6,272 |
8,788 |
||||||||||
Net gain on sale of available-for-sale securities |
334 |
1,648 |
31 |
1 |
1 |
||||||||||
Net gain on sale of foreclosed assets |
349 |
18 |
1,084 |
107 |
27 |
||||||||||
Net gain (loss) on sale of assets |
526 |
6 |
(10) |
(3) |
(6) |
||||||||||
Interest on loan recoveries |
664 |
1,649 |
283 |
1,207 |
1,746 |
||||||||||
Other noninterest income |
2,049 |
1,920 |
2,109 |
1,932 |
2,220 |
||||||||||
Total noninterest income |
$ |
30,943 |
$ |
37,317 |
$ |
34,881 |
$ |
34,903 |
$ |
37,726 |
|||||
NONINTEREST EXPENSE |
|||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing |
$ |
33,129 |
$ |
31,840 |
$ |
32,540 |
$ |
31,876 |
$ |
34,460 |
|||||
Profit sharing expense |
763 |
1,307 |
1,598 |
3,099 |
2,630 |
||||||||||
Net occupancy expense |
3,440 |
3,292 |
3,225 |
3,333 |
3,288 |
||||||||||
Equipment expense |
2,396 |
2,346 |
2,257 |
2,382 |
2,450 |
||||||||||
FDIC assessment fees |
917 |
904 |
869 |
848 |
815 |
||||||||||
Debit card expense |
3,013 |
3,200 |
2,964 |
3,221 |
2,929 |
||||||||||
Legal, tax and professional fees |
2,604 |
2,513 |
2,957 |
2,835 |
2,893 |
||||||||||
Audit fees |
451 |
450 |
451 |
423 |
466 |
||||||||||
Printing, stationery and supplies |
600 |
501 |
540 |
664 |
432 |
||||||||||
Amortization of intangible assets |
306 |
320 |
320 |
391 |
398 |
||||||||||
Advertising, meals and public relations |
1,692 |
1,554 |
1,493 |
1,842 |
1,746 |
||||||||||
Operational and other losses |
869 |
782 |
596 |
1,385 |
1,087 |
||||||||||
Software amortization and expense |
2,564 |
2,522 |
2,457 |
2,817 |
2,855 |
||||||||||
Other noninterest expense |
6,698 |
6,802 |
6,958 |
6,556 |
6,490 |
||||||||||
Total noninterest expense |
$ |
59,442 |
$ |
58,333 |
$ |
59,225 |
$ |
61,672 |
$ |
62,939 |
|||||
TAX EQUIVALENT YIELD ADJUSTMENT |
$ |
1,737 |
$ |
3,366 |
$ |
3,782 |
$ |
3,841 |
$ |
3,670 |
|||||
Nine Months Ended |
|||||||||||||||
Sept. 30, |
|||||||||||||||
NONINTEREST INCOME |
2022 |
2021 |
|||||||||||||
Trust fees |
$ |
29,873 |
$ |
26,475 |
|||||||||||
Service charges on deposits |
18,143 |
15,394 |
|||||||||||||
Debit card fees |
24,381 |
26,552 |
|||||||||||||
Credit card fees |
1,953 |
1,771 |
|||||||||||||
Gain on sale and fees on mortgage loans |
16,131 |
26,973 |
|||||||||||||
Net gain on sale of available-for-sale securities |
2,013 |
814 |
|||||||||||||
Net gain on sale of foreclosed assets |
1,451 |
83 |
|||||||||||||
Net gain (loss) on sale of assets |
522 |
213 |
|||||||||||||
Interest on loan recoveries |
2,596 |
2,832 |
|||||||||||||
Other noninterest income |
6,078 |
6,166 |
|||||||||||||
Total noninterest income |
$ |
103,141 |
$ |
107,273 |
|||||||||||
NONINTEREST EXPENSE |
|||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing |
$ |
97,509 |
$ |
100,032 |
|||||||||||
Profit sharing expense |
3,668 |
7,035 |
|||||||||||||
Net occupancy expense |
9,957 |
9,676 |
|||||||||||||
Equipment expense |
6,999 |
6,791 |
|||||||||||||
FDIC assessment fees |
2,690 |
2,282 |
|||||||||||||
Debit card expense |
9,177 |
8,736 |
|||||||||||||
Legal, tax and professional fees |
8,074 |
8,971 |
|||||||||||||
Audit fees |
1,352 |
1,336 |
|||||||||||||
Printing, stationery and supplies |
1,641 |
1,246 |
|||||||||||||
Amortization of intangible assets |
946 |
1,222 |
|||||||||||||
Advertising, meals and public relations |
4,739 |
4,526 |
|||||||||||||
Operational and other losses |
2,247 |
1,908 |
|||||||||||||
Software amortization and expense |
7,543 |
8,303 |
|||||||||||||
Other noninterest expense |
20,458 |
17,972 |
|||||||||||||
Total noninterest expense |
$ |
177,000 |
$ |
180,036 |
|||||||||||
TAX EQUIVALENT YIELD ADJUSTMENT |
$ |
8,884 |
$ |
10,850 |
|||||||||||
FIRST FINANCIAL BANKSHARES, INC. |
|||||||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||||||||||||||||||
(In thousands) |
|||||||||||||||||||||
Three Months Ended |
Three Months Ended |
||||||||||||||||||||
Sept. 30, 2022 |
June 30, 2022 |
||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
Average |
Tax Equivalent |
Yield / |
||||||||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||
Federal funds sold |
$ |
3,107 |
$ |
19 |
2.49 |
% |
$ |
1,466 |
$ |
5 |
1.45 |
% |
|||||||||
Interest-bearing demand deposits in nonaffiliated banks |
248,929 |
1,413 |
2.25 |
288,784 |
547 |
0.76 |
|||||||||||||||
Taxable securities |
4,039,107 |
20,799 |
2.06 |
4,101,751 |
19,151 |
1.87 |
|||||||||||||||
Tax-exempt securities |
2,164,829 |
14,382 |
2.66 |
2,376,324 |
17,166 |
2.89 |
|||||||||||||||
Loans |
6,082,649 |
77,851 |
5.08 |
5,720,804 |
68,478 |
4.80 |
|||||||||||||||
Total interest-earning assets |
12,538,621 |
$ |
114,464 |
3.62 |
% |
12,489,129 |
$ |
105,347 |
3.38 |
% |
|||||||||||
Noninterest-earning assets |
833,980 |
825,711 |
|||||||||||||||||||
Total assets |
$ |
13,372,601 |
$ |
13,314,840 |
|||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||
Deposits |
$ |
7,004,478 |
$ |
8,787 |
0.50 |
% |
$ |
7,049,041 |
$ |
2,967 |
0.17 |
% |
|||||||||
Borrowings |
768,096 |
784 |
0.40 |
730,477 |
232 |
0.13 |
|||||||||||||||
Total interest-bearing liabilities |
7,772,574 |
$ |
9,571 |
0.49 |
% |
7,779,518 |
$ |
3,199 |
0.16 |
% |
|||||||||||
Noninterest-bearing deposits |
4,178,675 |
4,064,207 |
|||||||||||||||||||
Other noninterest-bearing liabilities |
61,320 |
65,475 |
|||||||||||||||||||
Shareholders' equity |
1,360,032 |
1,405,640 |
|||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
13,372,601 |
$ |
13,314,840 |
|||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
104,893 |
3.32 |
% |
$ |
102,148 |
3.28 |
% |
|||||||||||||
Three Months Ended |
Three Months Ended |
||||||||||||||||||||
Mar. 31, 2022 |
Dec. 31, 2021 |
||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
Average |
Tax Equivalent |
Yield / |
||||||||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||
Federal funds sold |
$ |
1,015 |
$ |
1 |
0.52 |
% |
$ |
82 |
$ |
- |
0.48 |
% |
|||||||||
Interest-bearing demand deposits in nonaffiliated banks |
171,970 |
94 |
0.22 |
320,102 |
124 |
0.15 |
|||||||||||||||
Taxable securities |
4,231,949 |
17,823 |
1.68 |
3,590,137 |
13,556 |
1.51 |
|||||||||||||||
Tax-exempt securities |
2,612,025 |
18,107 |
2.77 |
2,636,360 |
18,163 |
2.76 |
|||||||||||||||
Loans |
5,487,538 |
64,766 |
4.79 |
5,347,069 |
67,993 |
5.04 |
|||||||||||||||
Total interest-earning assets |
12,504,497 |
$ |
100,791 |
3.27 |
% |
11,893,750 |
$ |
99,836 |
3.33 |
% |
|||||||||||
Noninterest-earning assets |
744,810 |
726,932 |
|||||||||||||||||||
Total assets |
$ |
13,249,307 |
$ |
12,620,682 |
|||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||
Deposits |
$ |
6,898,059 |
$ |
1,369 |
0.08 |
% |
$ |
6,399,343 |
$ |
1,110 |
0.07 |
% |
|||||||||
Borrowings |
781,314 |
201 |
0.10 |
639,725 |
77 |
0.05 |
|||||||||||||||
Total interest-bearing liabilities |
7,679,373 |
$ |
1,570 |
0.08 |
% |
7,039,068 |
$ |
1,187 |
0.07 |
% |
|||||||||||
Noninterest-bearing deposits |
3,827,451 |
3,744,848 |
|||||||||||||||||||
Other noninterest-bearing liabilities |
64,999 |
99,091 |
|||||||||||||||||||
Shareholders' equity |
1,677,484 |
1,737,675 |
|||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
13,249,307 |
$ |
12,620,682 |
|||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
99,221 |
3.22 |
% |
$ |
98,649 |
3.29 |
% |
|||||||||||||
Three Months Ended |
|||||||||||||||||||||
Sept. 30, 2021 |
|||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
|||||||||||||||||||
Balance |
Interest |
Rate |
|||||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||
Federal funds sold |
$ |
1,554 |
$ |
2 |
0.51 |
% |
|||||||||||||||
Interest-bearing demand deposits in nonaffiliated banks |
612,551 |
236 |
0.15 |
||||||||||||||||||
Taxable securities |
3,081,215 |
12,122 |
1.57 |
||||||||||||||||||
Tax-exempt securities |
2,542,606 |
17,701 |
2.78 |
||||||||||||||||||
Loans |
5,337,807 |
70,807 |
5.26 |
||||||||||||||||||
Total interest-earning assets |
11,575,733 |
$ |
100,868 |
3.46 |
% |
||||||||||||||||
Noninterest-earning assets |
705,099 |
||||||||||||||||||||
Total assets |
$ |
12,280,832 |
|||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||
Deposits |
$ |
6,346,267 |
$ |
1,340 |
0.08 |
% |
|||||||||||||||
Borrowings |
599,934 |
76 |
0.05 |
||||||||||||||||||
Total interest-bearing liabilities |
6,946,201 |
$ |
1,416 |
0.08 |
% |
||||||||||||||||
Noninterest-bearing deposits |
3,490,685 |
||||||||||||||||||||
Other noninterest-bearing liabilities |
103,446 |
||||||||||||||||||||
Shareholders' equity |
1,740,500 |
||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
12,280,832 |
|||||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
99,452 |
3.41 |
% |
|||||||||||||||||
Nine Months Ended |
Nine Months Ended |
||||||||||||||||||||
Sept. 30, 2022 |
Sept. 30, 2021 |
||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
Average |
Tax Equivalent |
Yield / |
||||||||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||
Federal funds sold |
$ |
1,870 |
$ |
26 |
1.87 |
% |
$ |
2,181 |
$ |
9 |
0.55 |
% |
|||||||||
Interest-bearing demand deposits in nonaffiliated banks |
236,843 |
2,054 |
1.16 |
682,082 |
606 |
0.12 |
|||||||||||||||
Taxable securities |
4,123,562 |
57,772 |
1.87 |
2,665,988 |
33,834 |
1.69 |
|||||||||||||||
Tax-exempt securities |
2,382,754 |
49,655 |
2.78 |
2,458,352 |
52,090 |
2.83 |
|||||||||||||||
Loans |
5,765,844 |
211,095 |
4.89 |
5,339,398 |
204,721 |
5.13 |
|||||||||||||||
Total interest-earning assets |
12,510,873 |
$ |
320,602 |
3.43 |
% |
11,148,001 |
$ |
291,260 |
3.49 |
% |
|||||||||||
Noninterest-earning assets |
801,828 |
699,326 |
|||||||||||||||||||
Total assets |
$ |
13,312,701 |
$ |
11,847,327 |
|||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||
Deposits |
$ |
6,984,249 |
$ |
13,124 |
0.25 |
% |
$ |
6,165,740 |
$ |
4,595 |
0.10 |
% |
|||||||||
Borrowings |
759,913 |
1,216 |
0.21 |
528,599 |
260 |
0.07 |
|||||||||||||||
Total interest-bearing liabilities |
7,744,162 |
$ |
14,340 |
0.25 |
% |
6,694,339 |
$ |
4,855 |
0.10 |
% |
|||||||||||
Noninterest-bearing deposits |
4,024,731 |
3,349,719 |
|||||||||||||||||||
Other noninterest-bearing liabilities |
63,919 |
103,354 |
|||||||||||||||||||
Shareholders' equity |
1,479,889 |
1,699,915 |
|||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
13,312,701 |
$ |
11,847,327 |
|||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
306,262 |
3.27 |
% |
$ |
286,405 |
3.43 |
% |
|||||||||||||
SOURCE First Financial Bankshares, Inc.
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