FIRST FINANCIAL BANKSHARES ANNOUNCES SECOND QUARTER 2022 EARNINGS
ABILENE, Texas, July 21, 2022 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings of $60.49 million for the second quarter of 2022 compared to earnings of $56.38 million for the same quarter a year ago. Basic and diluted earnings per share were $0.42 for the second quarter of 2022 compared with $0.40 and $0.39, respectively, for the second quarter of 2021. Through July 20, 2022, the Company has repurchased 244,559 shares of its common stock at an average price of $38.61. Currently, the Company has 4.75 million shares remaining under the share repurchase authorization through July 31, 2023.
As further described below, the results this quarter compared to the same quarter a year ago included (i) an increase in the provision for credit losses of $6.56 million; (ii) a $4.93 million decrease in PPP loan origination fees; and (iii) a $2.56 million decrease in mortgage revenues. Offsetting these items were the following increases (i) in net interest income, excluding lower PPP loan origination fees, of $12.76 million from continued balance sheet growth; (ii) in gains on the sale of investment securities of $1.64 million; and (iii) in interest on loan recoveries of $945 thousand.
"We have been able to keep the momentum that was created from the movement of non-customers to our bank during the pandemic. Our results reflect outstanding growth this quarter reflected by overall loan growth, excluding PPP and held-for-sale loans, of $325.85 million, or 23.5 percent annualized, and deposit growth of $123.16 million, or 4.49 percent annualized, with the addition of over 6,500 net new accounts year-to-date," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. "We are excited about our results this quarter while actively monitoring changes in interest rates and the overall economic environment. We are prepared for the opportunities ahead as the Texas economy continues to be strong and resilient. We appreciate the continued support of our customers, shareholders and associates," Dueser added.
Net interest income for the second quarter of 2022 was $98.78 million compared to $90.95 million for the second quarter of 2021. The net interest margin, on a taxable equivalent basis, was 3.28 percent for the second quarter of 2022 compared to 3.22 percent for the first quarter of 2022 and 3.36 percent in the second quarter of 2021. The growth in net interest income was driven by higher average interest-earning assets which increased to $12.49 billion for the second quarter of 2022 compared to $11.30 billion a year ago, partially offset by lower PPP loan origination fees which totaled $313 thousand in the second quarter of 2022 compared to $5.24 million in the second quarter of 2021. PPP loan balances totaled $2.30 million at June 30, 2022.
The Company recorded a provision for credit losses of $5.35 million for the second quarter of 2022 compared to a reversal of provision for credit losses of $1.21 million for the second quarter of 2021. The increase in the Company's provision for credit losses during the second quarter of 2022 was primarily driven by strong organic loan growth and a slight decline in the projected economic forecast. At June 30, 2022, the allowance for credit losses totaled $71.93 million, or 1.22 percent of loans held-for-investment ("loans" hereafter), compared to $62.14 million at June 30, 2021, or 1.17 percent of loans. Additionally, the reserve for unfunded commitments totaled $8.72 million at June 30, 2022 compared to $6.75 million at June 30, 2021.
For the second quarter of 2022, net recoveries totaled $916 thousand compared to net recoveries of $203 thousand for the second quarter of 2021. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.43 percent at June 30, 2022, compared with 0.57 percent at June 30, 2021. Classified loans totaled $152.67 million at June 30, 2022, compared to $174.99 million at June 30, 2021.
Noninterest income for the second quarter of 2022 was $37.32 million compared to $34.67 million for the second quarter of 2021, representing a net increase of $2.64 million from the following:
- Trust fees increased $1.05 million to $9.74 million for the second quarter of 2022 compared to $8.69 million for the second quarter of 2021 driven mainly by the continued increase in oil and gas revenue.
- Service charges on deposits increased $1.11 million for the second quarter of 2022 compared to the second quarter of 2021 primarily due to the continued increase in net new accounts.
- ATM, interchange, and credit card fees increased $715 thousand for the second quarter of 2022 compared to the same quarter a year ago primary due to an increase in debit cards issued. Effective July 1, 2022, the Company became subject to regulations imposed by the Federal Reserve that will reduce future interchange revenue (aka. "Durbin Amendment").
- Mortgage income was $5.73 million for the second quarter of 2022 compared to $8.29 million for the second quarter of 2021 due to lower overall origination volumes and margins.
- Recoveries of interest on previously charged-off or nonaccrual loans totaled $1.65 million for the second quarter of 2022 compared to $704 thousand for the second quarter of 2021.
- Gains on sales of securities were $1.65 million during the second quarter of 2022 compared to $5 thousand for the second quarter of 2021.
Noninterest expense for the second quarter of 2022 totaled $58.33 million compared to $59.37 million for the second quarter of 2021, as a result of the following:
- Salary, commissions, and employee benefit costs totaled $33.15 million for the second quarter of 2022, compared to $35.05 million in the second quarter of 2021 reflecting annual merit-based and market driven pay increases effective March 1, 2022 offset by lower mortgage compensation expenses of $1.49 million and a decrease of $803 thousand in profit sharing expenses.
- Noninterest expenses, excluding salary related costs, increased $858 thousand for the second quarter of 2022 compared to the same period in 2021, primarily related to increases in FDIC insurance, deposit account charge-offs, interchange processing costs, and loan processing costs.
The Company's efficiency ratio improved to 41.83 percent for the second quarter of 2022 compared to 45.94 percent for the second quarter of 2021.
As of June 30, 2022, consolidated total assets were $13.26 billion compared to $12.33 billion at June 30, 2021. Loans totaled $5.88 billion at June 30, 2022, compared with loans of $5.30 billion at June 30, 2021. Loans, excluding PPP loans, grew $325.85 million for the second quarter of 2022 and $540.10 million for the first half of 2022. Deposits totaled $11.12 billion at June 30, 2022, compared to $9.78 billion at June 30, 2021.
Shareholders' equity was $1.33 billion as of June 30, 2022, compared to $1.49 billion and $1.72 billion at March 31, 2022, and June 30, 2021, respectively, as a result of changes in other comprehensive income ("OCI") due to increasing interest rates over the last two quarters. The unrealized loss on the available-for-sale investment securities portfolio, net of applicable tax, totaled $400.51 million at June 30, 2022, compared to an unrealized loss of $209.58 million at March 31, 2022 and an unrealized gain of $136.49 million at June 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 | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Cash and due from banks | $ | 242,665 | $ | 203,187 | $ | 205,053 | $ | 201,901 | $ | 190,061 | |||||
Interest-bearing deposits in banks | 222,899 | 394,566 | 323,535 | 359,241 | 654,531 | ||||||||||
Investment securities | 6,215,036 | 6,502,495 | 6,573,179 | 6,119,984 | 5,578,048 | ||||||||||
Loans, held-for-investment, excluding PPP Loans | 5,876,281 | 5,550,430 | 5,336,179 | 5,147,160 | 4,984,210 | ||||||||||
PPP loans | 2,301 | 15,739 | 52,793 | 139,334 | 320,392 | ||||||||||
Total loans, held-for-investment | 5,878,582 | 5,566,169 | 5,388,972 | 5,286,494 | 5,304,602 | ||||||||||
Allowance for loan losses | (71,932) | (66,913) | (63,465) | (63,370) | (62,138) | ||||||||||
Net loans, held-for-investment | 5,806,650 | 5,499,256 | 5,325,507 | 5,223,124 | 5,242,464 | ||||||||||
Loans, held-for-sale | 26,445 | 27,670 | 37,810 | 47,721 | 61,802 | ||||||||||
Premises and equipment, net | 149,280 | 150,168 | 149,764 | 147,516 | 147,655 | ||||||||||
Goodwill | 313,481 | 313,481 | 313,481 | 313,481 | 313,481 | ||||||||||
Other intangible assets | 2,658 | 2,978 | 3,298 | 3,689 | 4,087 | ||||||||||
Other assets | 281,098 | 220,399 | 170,834 | 126,601 | 136,954 | ||||||||||
Total assets | $ | 13,260,212 | $ | 13,314,200 | $ | 13,102,461 | $ | 12,543,258 | $ | 12,329,083 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
Noninterest-bearing deposits | $ | 4,104,034 | $ | 3,978,724 | $ | 3,780,230 | $ | 3,574,405 | $ | 3,427,038 | |||||
Interest-bearing deposits | 7,018,949 | 7,021,101 | 6,786,258 | 6,318,712 | 6,354,656 | ||||||||||
Total deposits | 11,122,983 | 10,999,825 | 10,566,488 | 9,893,117 | 9,781,694 | ||||||||||
Borrowings | 768,364 | 758,595 | 671,152 | 648,679 | 549,969 | ||||||||||
Trade date payable | - | - | - | 174,236 | 189,838 | ||||||||||
Other liabilities | 39,847 | 67,031 | 105,597 | 93,491 | 87,213 | ||||||||||
Shareholders' equity | 1,329,018 | 1,488,749 | 1,759,224 | 1,733,735 | 1,720,369 | ||||||||||
Total liabilities and shareholders' equity | $ | 13,260,212 | $ | 13,314,200 | $ | 13,102,461 | $ | 12,543,258 | $ | 12,329,083 | |||||
Quarter Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
INCOME STATEMENTS | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Interest income | $ | 101,981 | $ | 97,009 | $ | 95,995 | $ | 97,198 | $ | 92,602 | |||||
Interest expense | 3,199 | 1,570 | 1,187 | 1,416 | 1,653 | ||||||||||
Net interest income | 98,782 | 95,439 | 94,808 | 95,782 | 90,949 | ||||||||||
Provision for credit losses | 5,350 | 4,782 | 2,064 | - | (1,206) | ||||||||||
Net interest income after provisions for credit losses | 93,432 | 90,657 | 92,744 | 95,782 | 92,155 | ||||||||||
Noninterest income | 37,317 | 34,881 | 34,903 | 37,726 | 34,673 | ||||||||||
Noninterest expense | 58,333 | 59,225 | 61,672 | 62,939 | 59,374 | ||||||||||
Net income before income taxes | 72,416 | 66,313 | 65,975 | 70,569 | 67,454 | ||||||||||
Income tax expense | 11,922 | 10,341 | 10,638 | 11,641 | 11,075 | ||||||||||
Net income | $ | 60,494 | $ | 55,972 | $ | 55,337 | $ | 58,928 | $ | 56,379 | |||||
PER COMMON SHARE DATA | |||||||||||||||
Net income - basic | $ | 0.42 | $ | 0.39 | $ | 0.39 | $ | 0.41 | $ | 0.40 | |||||
Net income - diluted | 0.42 | 0.39 | 0.39 | 0.41 | 0.39 | ||||||||||
Cash dividends declared | 0.17 | 0.15 | 0.15 | 0.15 | 0.15 | ||||||||||
Book value | 9.32 | 10.43 | 12.34 | 12.17 | 12.08 | ||||||||||
Tangible book value | 7.10 | 8.21 | 10.12 | 9.94 | 9.85 | ||||||||||
Market value | 39.27 | 44.12 | 50.84 | 45.95 | 49.13 | ||||||||||
Shares outstanding - end of period | 142,586,601 | 142,704,495 | 142,532,116 | 142,467,687 | 142,359,774 | ||||||||||
Average outstanding shares - basic | 142,682,251 | 142,558,743 | 142,437,804 | 142,334,449 | 142,245,555 | ||||||||||
Average outstanding shares - diluted | 143,238,669 | 143,302,063 | 143,251,521 | 143,218,920 | 143,164,611 | ||||||||||
PERFORMANCE RATIOS | |||||||||||||||
Return on average assets | 1.82 | % | 1.71 | % | 1.74 | % | 1.90 | % | 1.89 | % | |||||
Return on average equity | 17.26 | 13.53 | 12.63 | 13.43 | 13.38 | ||||||||||
Return on average tangible equity | 22.27 | 16.68 | 15.45 | 16.43 | 16.48 | ||||||||||
Net interest margin (tax equivalent) | 3.28 | 3.22 | 3.29 | 3.41 | 3.36 | ||||||||||
Efficiency ratio | 41.83 | 44.16 | 46.18 | 45.88 | 45.94 | ||||||||||
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
INCOME STATEMENTS | 2022 | 2021 | |||||||||||||
Interest income | $ | 198,990 | $ | 183,212 | |||||||||||
Interest expense | 4,769 | 3,439 | |||||||||||||
Net interest income | 194,221 | 179,773 | |||||||||||||
Provision for credit losses | 10,132 | (3,203) | |||||||||||||
Net interest income after provisions for credit losses | 184,089 | 182,976 | |||||||||||||
Noninterest income | 72,198 | 69,548 | |||||||||||||
Noninterest expense | 117,558 | 117,098 | |||||||||||||
Net income before income taxes | 138,729 | 135,426 | |||||||||||||
Income tax expense | 22,263 | 22,129 | |||||||||||||
Net income | $ | 116,466 | $ | 113,297 | |||||||||||
PER COMMON SHARE DATA | |||||||||||||||
Net income - basic | $ | 0.82 | $ | 0.80 | |||||||||||
Net income - diluted | 0.81 | 0.79 | |||||||||||||
Cash dividends declared | 0.32 | 0.28 | |||||||||||||
Book value | 9.32 | 12.08 | |||||||||||||
Tangible book value | 7.10 | 9.85 | |||||||||||||
Market value | $ | 39.27 | $ | 49.13 | |||||||||||
Shares outstanding - end of period | 142,586,601 | 142,359,774 | |||||||||||||
Average outstanding shares - basic | 142,620,838 | 142,196,190 | |||||||||||||
Average outstanding shares - diluted | 143,273,391 | 143,102,608 | |||||||||||||
PERFORMANCE RATIOS | |||||||||||||||
Return on average assets | 1.77 | % | 1.97 | % | |||||||||||
Return on average equity | 15.24 | 13.61 | |||||||||||||
Return on average tangible equity | 19.18 | 16.78 | |||||||||||||
Net interest margin (tax equivalent) | 3.25 | 3.45 | |||||||||||||
Efficiency ratio | 42.97 | 45.65 | |||||||||||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||
(In thousands) | |||||||||||||||
Quarter Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
ALLOWANCE FOR LOAN LOSSES | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Balance at beginning of period | $ | 66,913 | $ | 63,465 | $ | 63,370 | $ | 62,138 | $ | 62,974 | |||||
Loans charged off | (275) | (659) | (3,067) | (1,475) | (392) | ||||||||||
Loan recoveries | 1,191 | 360 | 783 | 2,707 | 595 | ||||||||||
Net recoveries (charge-offs) | 916 | (299) | (2,284) | 1,232 | 203 | ||||||||||
Provision for loan losses | 4,103 | 3,747 | 2,379 | - | (1,039) | ||||||||||
Balance at end of period | $ | 71,932 | $ | 66,913 | $ | 63,465 | $ | 63,370 | $ | 62,138 | |||||
ALLOWANCE FOR UNFUNDED COMMITMENTS | |||||||||||||||
Balance at beginning of period | $ | 7,471 | $ | 6,436 | $ | 6,751 | $ | 6,751 | $ | 6,918 | |||||
Provision for unfunded commitments | 1,247 | 1,035 | (315) | - | (167) | ||||||||||
Balance at end of period | $ | 8,718 | $ | 7,471 | $ | 6,436 | $ | 6,751 | $ | 6,751 | |||||
Allowance for loan losses / | |||||||||||||||
period-end loans held-for-investment | 1.22 | % | 1.20 | % | 1.18 | % | 1.20 | % | 1.17 | % | |||||
Allowance for loan losses / | |||||||||||||||
nonperforming loans | 281.90 | 232.71 | 200.33 | 250.92 | 208.45 | ||||||||||
Net charge-offs (recoveries) / average total loans | |||||||||||||||
(annualized) | (0.06) | 0.02 | 0.17 | (0.09) | (0.02) | ||||||||||
Quarter Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
COMPOSITION OF LOANS HELD-FOR-INVESTMENT | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Commercial: | |||||||||||||||
C&I | $ | 837,627 | $ | 822,310 | $ | 784,282 | $ | 680,263 | $ | 662,711 | |||||
PPP | 2,301 | 15,739 | 52,793 | 139,334 | 320,392 | ||||||||||
Municipal | 200,577 | 191,799 | 177,905 | 165,847 | 179,356 | ||||||||||
Total Commercial | 1,040,505 | 1,029,848 | 1,014,980 | 985,444 | 1,162,459 | ||||||||||
Agriculture | 90,420 | 82,883 | 98,089 | 98,947 | 95,212 | ||||||||||
Real Estate: | |||||||||||||||
Construction & Development | 928,644 | 806,211 | 749,793 | 656,530 | 550,928 | ||||||||||
Farm | 250,028 | 225,942 | 217,220 | 203,064 | 185,288 | ||||||||||
Non-Owner Occupied CRE | 636,432 | 636,160 | 623,434 | 674,958 | 673,608 | ||||||||||
Owner Occupied CRE | 909,899 | 881,181 | 821,653 | 824,231 | 820,055 | ||||||||||
Residential | 1,412,125 | 1,352,162 | 1,334,419 | 1,328,798 | 1,328,474 | ||||||||||
Total Real Estate | 4,137,128 | 3,901,656 | 3,746,519 | 3,687,581 | 3,558,353 | ||||||||||
Consumer: | |||||||||||||||
Auto | 468,147 | 419,818 | 405,416 | 394,072 | 383,764 | ||||||||||
Non-Auto | 142,382 | 131,964 | 123,968 | 120,450 | 104,814 | ||||||||||
Total Consumer | 610,529 | 551,782 | 529,384 | 514,522 | 488,578 | ||||||||||
Total loans held-for-investment | $ | 5,878,582 | $ | 5,566,169 | $ | 5,388,972 | $ | 5,286,494 | $ | 5,304,602 | |||||
SUMMARY OF LOAN CLASSIFICATION | |||||||||||||||
Special Mention | $ | 46,512 | $ | 47,445 | $ | 55,670 | $ | 53,620 | $ | 54,497 | |||||
Substandard | 106,156 | 104,715 | 105,515 | 112,151 | 120,497 | ||||||||||
Doubtful | - | - | - | - | - | ||||||||||
Total classified loans | $ | 152,668 | $ | 152,160 | $ | 161,185 | $ | 165,771 | $ | 174,994 | |||||
NONPERFORMING ASSETS | |||||||||||||||
Nonaccrual loans | $ | 25,475 | $ | 28,723 | $ | 31,652 | $ | 25,210 | $ | 29,786 | |||||
Accruing troubled debt restructured loans | 20 | 20 | 21 | 22 | 23 | ||||||||||
Accruing loans 90 days past due | 22 | 11 | 8 | 23 | - | ||||||||||
Total nonperforming loans | 25,517 | 28,754 | 31,681 | 25,255 | 29,809 | ||||||||||
Foreclosed assets | - | - | 2,477 | 28 | 305 | ||||||||||
Total nonperforming assets | $ | 25,517 | $ | 28,754 | $ | 34,158 | $ | 25,283 | $ | 30,114 | |||||
As a % of loans held-for-investment and foreclosed assets | 0.43 | % | 0.52 | % | 0.63 | % | 0.48 | % | 0.57 | % | |||||
As a % of end of period total assets | 0.19 | 0.22 | 0.26 | 0.20 | 0.24 | ||||||||||
Quarter Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
CAPITAL RATIOS | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Common equity Tier 1 capital ratio | 18.50 | % | 19.00 | % | 19.35 | % | 19.71 | % | 20.04 | % | |||||
Tier 1 capital ratio | 18.50 | 19.00 | 19.35 | 19.71 | 20.04 | ||||||||||
Total capital ratio | 19.54 | 20.01 | 20.34 | 20.76 | 21.12 | ||||||||||
Tier 1 leverage ratio | 10.65 | 10.78 | 11.13 | 11.19 | 11.10 | ||||||||||
Tangible common equity ratio | 7.83 | 9.02 | 11.28 | 11.59 | 11.68 | ||||||||||
Equity/Assets ratio | 10.02 | 11.18 | 13.43 | 13.82 | 13.95 | ||||||||||
Quarter Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
NONINTEREST INCOME | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Trust fees | $ | 9,742 | $ | 9,817 | $ | 9,670 | $ | 9,484 | $ | 8,692 | |||||
Service charges on deposits | 6,038 | 5,706 | 5,762 | 5,673 | 4,928 | ||||||||||
ATM, interchange and credit card fees | 10,568 | 9,528 | 9,955 | 9,793 | 9,853 | ||||||||||
Gain on sale and fees on mortgage loans | 5,728 | 6,333 | 6,272 | 8,788 | 8,291 | ||||||||||
Net gain on sale of available-for-sale securities | 1,648 | 31 | 1 | 1 | 5 | ||||||||||
Net gain on sale of foreclosed assets | 18 | 1,084 | 107 | 27 | 1 | ||||||||||
Net gain (loss) on sale of assets | 6 | (10) | (3) | (6) | 74 | ||||||||||
Interest on loan recoveries | 1,649 | 283 | 1,207 | 1,746 | 704 | ||||||||||
Other noninterest income | 1,920 | 2,109 | 1,932 | 2,220 | 2,125 | ||||||||||
Total noninterest income | $ | 37,317 | $ | 34,881 | $ | 34,903 | $ | 37,726 | $ | 34,673 | |||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 31,840 | $ | 32,540 | $ | 31,876 | $ | 34,460 | $ | 32,936 | |||||
Profit sharing expense | 1,307 | 1,598 | 3,099 | 2,630 | 2,110 | ||||||||||
Net occupancy expense | 3,292 | 3,225 | 3,333 | 3,288 | 3,241 | ||||||||||
Equipment expense | 2,346 | 2,257 | 2,382 | 2,450 | 2,177 | ||||||||||
FDIC insurance premiums | 904 | 869 | 848 | 815 | 766 | ||||||||||
ATM, interchange and credit card expenses | 3,201 | 2,968 | 3,227 | 2,935 | 3,039 | ||||||||||
Legal, tax and professional fees | 2,513 | 2,957 | 2,835 | 2,893 | 3,352 | ||||||||||
Audit fees | 450 | 451 | 423 | 466 | 430 | ||||||||||
Printing, stationery and supplies | 501 | 540 | 664 | 432 | 489 | ||||||||||
Amortization of intangible assets | 320 | 320 | 391 | 398 | 412 | ||||||||||
Advertising, meals and public relations | 1,554 | 1,493 | 1,842 | 1,746 | 1,392 | ||||||||||
Operational and other losses | 782 | 596 | 1,385 | 1,087 | 534 | ||||||||||
Software amortization and expense | 2,522 | 2,457 | 2,817 | 2,855 | 2,829 | ||||||||||
Other noninterest expense | 6,801 | 6,954 | 6,550 | 6,484 | 5,667 | ||||||||||
Total noninterest expense | $ | 58,333 | $ | 59,225 | $ | 61,672 | $ | 62,939 | $ | 59,374 | |||||
TAX EQUIVALENT YIELD ADJUSTMENT | $ | 3,366 | $ | 3,782 | $ | 3,841 | $ | 3,670 | $ | 3,633 | |||||
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
NONINTEREST INCOME | 2022 | 2021 | |||||||||||||
Trust fees | $ | 19,559 | $ | 16,991 | |||||||||||
Service charges on deposits | 11,744 | 9,721 | |||||||||||||
ATM, interchange and credit card fees | 20,096 | 18,530 | |||||||||||||
Gain on sale and fees on mortgage loans | 12,061 | 18,185 | |||||||||||||
Net gain on sale of available-for-sale securities | 1,679 | 813 | |||||||||||||
Net gain on sale of foreclosed assets | 1,102 | 56 | |||||||||||||
Net gain (loss) on sale of assets | (4) | 219 | |||||||||||||
Interest on loan recoveries | 1,932 | 1,086 | |||||||||||||
Other noninterest income | 4,029 | 3,947 | |||||||||||||
Total noninterest income | $ | 72,198 | $ | 69,548 | |||||||||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 64,380 | $ | 65,572 | |||||||||||
Profit sharing expense | 2,905 | 4,405 | |||||||||||||
Net occupancy expense | 6,517 | 6,388 | |||||||||||||
Equipment expense | 4,603 | 4,341 | |||||||||||||
FDIC insurance premiums | 1,773 | 1,467 | |||||||||||||
ATM, interchange and credit card expenses | 6,169 | 5,811 | |||||||||||||
Legal, tax and professional fees | 5,470 | 6,078 | |||||||||||||
Audit fees | 901 | 870 | |||||||||||||
Printing, stationery and supplies | 1,041 | 814 | |||||||||||||
Amortization of intangible assets | 640 | 824 | |||||||||||||
Advertising, meals and public relations | 3,047 | 2,780 | |||||||||||||
Operational and other losses | 1,378 | 821 | |||||||||||||
Software amortization and expense | 4,979 | 5,448 | |||||||||||||
Other noninterest expense | 13,755 | 11,479 | |||||||||||||
Total noninterest expense | $ | 117,558 | $ | 117,098 | |||||||||||
TAX EQUIVALENT YIELD ADJUSTMENT | $ | 7,148 | $ | 7,180 | |||||||||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
June 30, 2022 | Mar. 31, 2022 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 1,466 | $ | 5 | 1.45 | % | $ | 1,015 | $ | 1 | 0.52 | % | |||||||||
Interest-bearing deposits in nonaffiliated banks | 288,784 | 547 | 0.76 | 171,970 | 94 | 0.22 | |||||||||||||||
Taxable securities | 4,101,751 | 19,151 | 1.87 | 4,231,949 | 17,823 | 1.68 | |||||||||||||||
Tax exempt securities | 2,376,324 | 17,166 | 2.89 | 2,612,025 | 18,107 | 2.77 | |||||||||||||||
Loans | 5,720,804 | 68,478 | 4.80 | 5,487,538 | 64,766 | 4.79 | |||||||||||||||
Total interest-earning assets | 12,489,129 | $ | 105,347 | 3.38 | % | 12,504,497 | $ | 100,791 | 3.27 | % | |||||||||||
Noninterest-earning assets | 825,711 | 744,810 | |||||||||||||||||||
Total assets | $ | 13,314,840 | $ | 13,249,307 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 7,049,041 | $ | 2,967 | 0.17 | % | $ | 6,898,059 | $ | 1,369 | 0.08 | % | |||||||||
Borrowings | 730,477 | 232 | 0.13 | 781,314 | 201 | 0.10 | |||||||||||||||
Total interest-bearing liabilities | 7,779,518 | $ | 3,199 | 0.16 | % | 7,679,373 | $ | 1,570 | 0.08 | % | |||||||||||
Noninterest-bearing deposits | 4,064,207 | 3,827,451 | |||||||||||||||||||
Other noninterest-bearing liabilities | 65,475 | 64,999 | |||||||||||||||||||
Shareholders' equity | 1,405,640 | 1,677,484 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 13,314,840 | $ | 13,249,307 | |||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 102,148 | 3.28 | % | $ | 99,221 | 3.22 | % | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
Dec. 31, 2021 | Sept. 30, 2021 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 82 | $ | - | 0.48 | % | $ | 1,554 | $ | 2 | 0.51 | % | |||||||||
Interest-bearing deposits in nonaffiliated banks | 320,102 | 124 | 0.15 | 612,551 | 236 | 0.15 | |||||||||||||||
Taxable securities | 3,590,137 | 13,556 | 1.51 | 3,081,215 | 12,122 | 1.57 | |||||||||||||||
Tax exempt securities | 2,636,360 | 18,163 | 2.76 | 2,542,606 | 17,701 | 2.78 | |||||||||||||||
Loans | 5,347,069 | 67,993 | 5.04 | 5,337,807 | 70,807 | 5.26 | |||||||||||||||
Total interest-earning assets | 11,893,750 | $ | 99,836 | 3.33 | % | 11,575,733 | $ | 100,868 | 3.46 | % | |||||||||||
Noninterest-earning assets | 726,932 | 705,099 | |||||||||||||||||||
Total assets | $ | 12,620,682 | $ | 12,280,832 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 6,399,343 | $ | 1,110 | 0.07 | % | $ | 6,346,267 | $ | 1,340 | 0.08 | % | |||||||||
Borrowings | 639,725 | 77 | 0.05 | 599,934 | 76 | 0.05 | |||||||||||||||
Total interest-bearing liabilities | 7,039,068 | $ | 1,187 | 0.07 | % | 6,946,201 | $ | 1,416 | 0.08 | % | |||||||||||
Noninterest-bearing deposits | 3,744,848 | 3,490,685 | |||||||||||||||||||
Other noninterest-bearing liabilities | 99,091 | 103,446 | |||||||||||||||||||
Shareholders' equity | 1,737,675 | 1,740,500 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,620,682 | $ | 12,280,832 | |||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 98,649 | 3.29 | % | $ | 99,452 | 3.41 | % | |||||||||||||
Three Months Ended | |||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||
Average | Tax Equivalent | Yield / | |||||||||||||||||||
Balance | Interest | Rate | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 3,049 | $ | 4 | 0.54 | % | |||||||||||||||
Interest-bearing deposits in nonaffiliated banks | 796,835 | 211 | 0.11 | ||||||||||||||||||
Taxable securities | 2,656,211 | 11,449 | 1.72 | ||||||||||||||||||
Tax exempt securities | 2,461,924 | 17,410 | 2.83 | ||||||||||||||||||
Loans | 5,383,781 | 67,161 | 5.00 | ||||||||||||||||||
Total interest-earning assets | 11,301,800 | $ | 96,235 | 3.42 | % | ||||||||||||||||
Noninterest-earning assets | 692,282 | ||||||||||||||||||||
Total assets | $ | 11,994,082 | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 6,229,991 | $ | 1,560 | 0.10 | % | |||||||||||||||
Borrowings | 527,669 | 93 | 0.07 | ||||||||||||||||||
Total interest-bearing liabilities | 6,757,660 | $ | 1,653 | 0.10 | % | ||||||||||||||||
Noninterest-bearing deposits | 3,439,683 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 106,994 | ||||||||||||||||||||
Shareholders' equity | 1,689,745 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 11,994,082 | |||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 94,582 | 3.36 | % | |||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 1,241 | $ | 7 | 1.07 | % | $ | 2,499 | $ | 7 | 0.56 | % | |||||||||
Interest-bearing deposits in nonaffiliated banks | 230,700 | 641 | 0.56 | 717,423 | 370 | 0.10 | |||||||||||||||
Taxable securities | 4,166,490 | 36,974 | 1.77 | 2,454,933 | 21,712 | 1.77 | |||||||||||||||
Tax exempt securities | 2,493,523 | 35,273 | 2.83 | 2,415,527 | 34,389 | 2.85 | |||||||||||||||
Loans | 5,604,815 | 133,243 | 4.79 | 5,340,207 | 133,914 | 5.06 | |||||||||||||||
Total interest-earning assets | 12,496,769 | $ | 206,138 | 3.33 | % | 10,930,589 | $ | 190,392 | 3.51 | % | |||||||||||
Noninterest-earning assets | 785,486 | 696,393 | |||||||||||||||||||
Total assets | $ | 13,282,255 | $ | 11,626,982 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 6,973,967 | $ | 4,336 | 0.13 | % | $ | 6,073,981 | $ | 3,255 | 0.11 | % | |||||||||
Borrowings | 755,755 | 433 | 0.12 | 492,341 | 184 | 0.08 | |||||||||||||||
Total interest-bearing liabilities | 7,729,722 | $ | 4,769 | 0.12 | % | 6,566,322 | $ | 3,439 | 0.11 | % | |||||||||||
Noninterest-bearing deposits | 3,946,483 | 3,278,067 | |||||||||||||||||||
Other noninterest-bearing liabilities | 65,239 | 103,307 | |||||||||||||||||||
Shareholders' equity | 1,540,811 | 1,679,286 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 13,282,255 | $ | 11,626,982 | |||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 201,369 | 3.25 | % | $ | 186,953 | 3.45 | % | |||||||||||||
SOURCE First Financial Bankshares, Inc.
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