Financial

FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2022 EARNINGS

, /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.

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 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.

Source: https://www.prnewswire.com/news-releases/first-financial-bankshares-announces-third-quarter-2022-earnings-301655422.html

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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