FIRST FINANCIAL BANKSHARES ANNOUNCES SECOND QUARTER 2023 EARNINGS
ABILENE, Texas, July 20, 2023 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings of $50.87 million for the second quarter of 2023 compared to earnings of $60.49 million for the same quarter a year ago. Basic and diluted earnings per share were $0.36 for the second quarter of 2023 compared with $0.42 for the second quarter of 2022.
As further described below, the results this quarter when compared to the same quarter a year ago included (i) a $2.92 million decrease in net interest income, (ii) a $3.15 million decrease in debit card fees, (iii) a $2.19 million decrease in mortgage revenues, (iv) a $1.60 million decrease in gains on sale of available for sale securities, and (v) a $1.17 million decrease in interest recoveries on charged off loans. Offsetting these decreases in income was a $1.34 million decrease in profit sharing expense.
"We are pleased with the strong, organic loan growth, our consistent deposit base and the continued growth in net new accounts which was over 4,000 accounts during the quarter. While we continue to experience rising interest expense costs, we have been able to mitigate some of the impact on the net interest margin by investing our bond portfolio cash flows into our higher yielding loan portfolio. In addition, our outlook for mortgage activity has improved with our new team of experienced mortgage lenders in the Bryan, College Station region and increased activity as home buyers seem to have become more accustomed to higher rates," said F. Scott Dueser, Chairman, CEO and President of First Financial Bankshares, Inc. "Looking forward, we plan to continue to grow loans and deposits, maintain our strong capital position, manage interest rate risk and reduce expenses. To cut expenses, I have made the personal decision to forgo awards of stock options, restricted stock grants, performance stock grants and my annual bonus for 2023. I am a firm believer that cost savings should start with the CEO. As always, we appreciate the continued support of our customers, shareholders, and associates," Dueser added.
Net interest income for the second quarter of 2023 was $95.87 million compared to $98.78 million for the second quarter of 2022. The net interest margin, on a taxable equivalent basis, was 3.29 percent for the second quarter of 2023 compared to 3.34 percent for the first quarter of 2023 and 3.30 percent in the second quarter of 2022. Average interest-earning assets were $12.05 billion for the second quarter of 2023 compared to $12.49 billion for the same quarter a year ago.
The Company recorded a provision for credit losses of $5.57 million for the second quarter of 2023 compared to a provision for credit losses of $5.35 million for the second quarter of 2022. At June 30, 2023, the allowance for credit losses totaled $86.54 million, or 1.28 percent of loans held-for-investment ("loans" hereafter), compared to $71.93 million at June 30, 2022, or 1.22 percent of loans. Additionally, the reserve for unfunded commitments totaled $9.45 million at June 30, 2023 compared to $8.72 million at June 30, 2022.
For the second quarter of 2023, net charge-offs totaled $799 thousand compared to net recoveries of $916 thousand for the second quarter of 2022. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.43 percent at both June 30, 2023, and June 30, 2022. Classified loans totaled $175.14 million at June 30, 2023, compared to $152.67 million at June 30, 2022.
Noninterest income for the second quarter of 2023 was $29.95 million compared to $37.32 million for the second quarter of 2022, largely due to the following:
- Debit card fees decreased by $3.15 million for the second quarter of 2023 compared to the same quarter a year ago. The decrease was due to the impact of becoming subject to regulations that limit debit card interchange revenue ("Durbin Amendment") effective at the start of third quarter last year. Accordingly, the second quarter of 2023 is the last quarter that will be impacted for comparability purposes to the prior year as a result of the Company becoming subject to the Durbin Amendment.
- Mortgage income declined to $3.53 million for the second quarter of 2023 compared to $5.73 million for the second quarter of 2022 due to lower overall origination volume and margins primarily because of the significant increase in mortgage interest rates.
- Available for sale securities were sold in the second quarter last year for gain on sales of $1.65 million. Securities sales activity in subsequent quarters in 2022 and in the second quarter of 2023 did not generate similar gains.
- Recoveries of interest on previously charged-off or nonaccrual loans totaled $475 thousand for the second quarter of 2023 compared to $1.65 million for the second quarter of 2022, which was a larger than normal amount.
- Service charges on deposits increased to $6.31 million for the second quarter of 2023 compared with $6.04 million for the second quarter of 2022, driven by the growth in net new accounts.
Noninterest expense for the second quarter of 2023 totaled $57.61 million compared to $58.33 million for the second quarter of 2022, as a result of the following:
- Salary, commissions, and employee benefit costs decreased to $31.77 million for the second quarter of 2023, compared to $33.15 million in the second quarter of 2022 primarily resulting from a decrease of $1.34 million in profit sharing expense and $428 thousand in mortgage incentives.
- Noninterest expenses, excluding salary related costs, increased $661 thousand for the second quarter of 2023 compared to the same period in 2022 largely due to an increase of $513 thousand in FDIC insurance fees.
The Company's efficiency ratio was 44.74 percent for the second quarter of 2023 compared to 41.61 percent for the second quarter of 2022. The increase was driven by the decrease in non-interest income from the prior year.
As of June 30, 2023, consolidated total assets were $12.83 billion compared to $13.26 billion at June 30, 2022. Loans totaled $6.78 billion at June 30, 2023, compared with loans of $5.88 billion at June 30, 2022. During the second quarter of 2023, loans grew $201.37 million, or 12.28 percent annualized, when compared to March 31, 2023 balances. Deposits totaled $10.81 billion at June 30, 2023, compared to $11.12 billion at June 30, 2022.
Shareholders' equity was $1.37 billion as of June 30, 2023, compared to $1.37 billion and $1.33 billion at March 31, 2023, and June 30, 2022, respectively, primarily as a result of changes in Other Comprehensive Income ("OCI") due to interest rate changes over the past year. The unrealized loss on the securities portfolio, net of applicable tax, totaled $490.28 million at June 30, 2023, compared to unrealized losses of $458.25 million at March 31, 2023 and $400.51 million at June 30, 2022.
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 79 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, Lumberton, 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 nine 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," "project," 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. | |||||||||||||||
As of | |||||||||||||||
2023 | 2022 | ||||||||||||||
ASSETS | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Cash and due from banks | $ | 255,018 | $ | 224,875 | $ | 293,286 | $ | 227,298 | $ | 242,665 | |||||
Interest-bearing demand deposits in banks | 23,839 | 221,336 | 37,392 | 138,484 | 222,899 | ||||||||||
Investment securities | 5,066,262 | 5,298,557 | 5,474,359 | 5,745,443 | 6,215,036 | ||||||||||
Loans, held-for-investment, excluding PPP Loans | 6,777,429 | 6,576,060 | 6,441,699 | 6,255,286 | 5,876,281 | ||||||||||
PPP loans | 141 | 155 | 169 | 202 | 2,301 | ||||||||||
Total loans, held-for-investment | 6,777,570 | 6,576,215 | 6,441,868 | 6,255,488 | 5,878,582 | ||||||||||
Allowance for credit losses | (86,541) | (80,818) | (75,834) | (74,108) | (71,932) | ||||||||||
Net loans, held-for-investment | 6,691,029 | 6,495,397 | 6,366,034 | 6,181,380 | 5,806,650 | ||||||||||
Loans, held-for-sale | 19,220 | 11,996 | 11,965 | 18,815 | 26,445 | ||||||||||
Premises and equipment, net | 152,876 | 153,718 | 152,973 | 152,646 | 149,280 | ||||||||||
Goodwill | 313,481 | 313,481 | 313,481 | 313,481 | 313,481 | ||||||||||
Other intangible assets | 1,597 | 1,825 | 2,053 | 2,352 | 2,658 | ||||||||||
Other assets | 302,115 | 286,801 | 322,523 | 330,445 | 281,098 | ||||||||||
Total assets | $ | 12,825,437 | $ | 13,007,986 | $ | 12,974,066 | $ | 13,110,344 | $ | 13,260,212 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
Noninterest-bearing deposits | $ | 3,578,483 | $ | 3,890,991 | $ | 4,061,788 | $ | 4,200,792 | $ | 4,104,034 | |||||
Interest-bearing deposits | 7,229,077 | 7,045,427 | 6,943,719 | 6,941,326 | 7,018,949 | ||||||||||
Total deposits | 10,807,560 | 10,936,418 | 11,005,507 | 11,142,118 | 11,122,983 | ||||||||||
Borrowings | 587,656 | 632,927 | 642,507 | 774,581 | 768,364 | ||||||||||
Other liabilities | 62,988 | 65,788 | 60,315 | 61,030 | 39,847 | ||||||||||
Shareholders' equity | 1,367,233 | 1,372,853 | 1,265,737 | 1,132,615 | 1,329,018 | ||||||||||
Total liabilities and shareholders' equity | $ | 12,825,437 | $ | 13,007,986 | $ | 12,974,066 | $ | 13,110,344 | $ | 13,260,212 | |||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
INCOME STATEMENTS | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Interest income | $ | 129,005 | $ | 121,508 | $ | 121,137 | $ | 112,728 | $ | 101,981 | |||||
Interest expense | 33,139 | 25,222 | 17,100 | 9,572 | 3,199 | ||||||||||
Net interest income | 95,866 | 96,286 | 104,037 | 103,156 | 98,782 | ||||||||||
Provision for credit losses | 5,573 | 2,781 | 4,075 | 3,221 | 5,350 | ||||||||||
Net interest income after provision for credit losses | 90,293 | 93,505 | 99,962 | 99,935 | 93,432 | ||||||||||
Noninterest income | 29,947 | 28,007 | 28,524 | 30,943 | 37,317 | ||||||||||
Noninterest expense | 57,613 | 57,256 | 57,778 | 59,442 | 58,333 | ||||||||||
Net income before income taxes | 62,627 | 64,256 | 70,708 | 71,436 | 72,416 | ||||||||||
Income tax expense | 11,754 | 11,688 | 12,040 | 12,095 | 11,922 | ||||||||||
Net income | $ | 50,873 | $ | 52,568 | $ | 58,668 | $ | 59,341 | $ | 60,494 | |||||
PER COMMON SHARE DATA | |||||||||||||||
Net income - basic | $ | 0.36 | $ | 0.37 | $ | 0.41 | $ | 0.42 | $ | 0.42 | |||||
Net income - diluted | 0.36 | 0.37 | 0.41 | 0.41 | 0.42 | ||||||||||
Cash dividends declared | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | ||||||||||
Book value | 9.58 | 9.62 | 8.87 | 7.94 | 9.32 | ||||||||||
Tangible book value | 7.37 | 7.41 | 6.66 | 5.73 | 7.10 | ||||||||||
Market value | 28.49 | 31.90 | 34.40 | 41.83 | 39.27 | ||||||||||
Shares outstanding - end of period | 142,741,196 | 142,703,531 | 142,657,871 | 142,628,163 | 142,586,601 | ||||||||||
Average outstanding shares - basic | 142,700,805 | 142,665,646 | 142,619,632 | 142,524,500 | 142,682,251 | ||||||||||
Average outstanding shares - diluted | 143,087,555 | 143,066,011 | 143,071,538 | 143,126,088 | 143,238,669 | ||||||||||
PERFORMANCE RATIOS | |||||||||||||||
Return on average assets | 1.58 | % | 1.65 | % | 1.76 | % | 1.76 | % | 1.82 | % | |||||
Return on average equity | 14.89 | 16.32 | 19.87 | 17.31 | 17.26 | ||||||||||
Return on average tangible equity | 19.33 | 21.51 | 27.20 | 22.55 | 22.27 | ||||||||||
Net interest margin (tax equivalent)* | 3.29 | 3.34 | 3.47 | 3.38 | 3.30 | ||||||||||
Efficiency ratio* | 44.74 | 44.93 | 42.39 | 43.10 | 41.61 | ||||||||||
*Calculations have been adjusted to remove effect of TEFRA disallowance | |||||||||||||||
Six Months Ended | ||||||
June 30, | ||||||
INCOME STATEMENTS | 2023 | 2022 | ||||
Interest income | $ | 250,513 | $ | 198,990 | ||
Interest expense | 58,361 | 4,769 | ||||
Net interest income | 192,152 | 194,221 | ||||
Provision for credit losses | 8,354 | 10,132 | ||||
Net interest income after provisions for credit losses | 183,798 | 184,089 | ||||
Noninterest income | 57,954 | 72,198 | ||||
Noninterest expense | 114,869 | 117,558 | ||||
Net income before income taxes | 126,883 | 138,729 | ||||
Income tax expense | 23,442 | 22,263 | ||||
Net income | $ | 103,441 | $ | 116,466 | ||
PER COMMON SHARE DATA | ||||||
Net income - basic | $ | 0.72 | $ | 0.82 | ||
Net income - diluted | 0.72 | 0.81 | ||||
Cash dividends declared | 0.35 | 0.32 | ||||
Book value | 9.58 | 9.32 | ||||
Tangible book value | 7.37 | 7.10 | ||||
Market value | $ | 28.49 | $ | 39.27 | ||
Shares outstanding - end of period | 142,741,196 | 142,586,601 | ||||
Average outstanding shares - basic | 142,683,322 | 142,620,838 | ||||
Average outstanding shares - diluted | 143,027,503 | 143,273,391 | ||||
PERFORMANCE RATIOS | ||||||
Return on average assets | 1.62 | % | 1.77 | % | ||
Return on average equity | 15.58 | 15.24 | ||||
Return on average tangible equity | 20.38 | 19.18 | ||||
Net interest margin (tax equivalent)* | 3.32 | 3.26 | ||||
Efficiency ratio* | 44.84 | 42.86 | ||||
*Calculations have been adjusted to remove effect of TEFRA disallowance | ||||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||
(In thousands) | |||||||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
ALLOWANCE FOR LOAN LOSSES | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Balance at beginning of period | $ | 80,818 | $ | 75,834 | $ | 74,108 | $ | 71,932 | $ | 66,913 | |||||
Loans charged-off | (1,118) | (288) | (1,225) | (293) | (275) | ||||||||||
Loan recoveries | 319 | 565 | 320 | 1,409 | 1,191 | ||||||||||
Net recoveries (charge-offs) | (799) | 277 | (905) | 1,116 | 916 | ||||||||||
Provision for loan losses | 6,522 | 4,707 | 2,631 | 1,060 | 4,103 | ||||||||||
Balance at end of period | $ | 86,541 | $ | 80,818 | $ | 75,834 | $ | 74,108 | $ | 71,932 | |||||
ALLOWANCE FOR UNFUNDED COMMITMENTS | |||||||||||||||
Balance at beginning of period | $ | 10,397 | $ | 12,323 | $ | 10,879 | $ | 8,718 | $ | 7,471 | |||||
Provision for unfunded commitments | (949) | (1,926) | 1,444 | 2,161 | 1,247 | ||||||||||
Balance at end of period | $ | 9,448 | $ | 10,397 | $ | 12,323 | $ | 10,879 | $ | 8,718 | |||||
Allowance for loan losses / | |||||||||||||||
period-end loans held-for-investment | 1.28 | % | 1.23 | % | 1.18 | % | 1.18 | % | 1.22 | % | |||||
Allowance for loan losses / | |||||||||||||||
nonperforming loans | 296.13 | 334.06 | 311.75 | 301.02 | 281.90 | ||||||||||
Net charge-offs (recoveries) / average total loans | |||||||||||||||
(annualized) | 0.05 | (0.02) | 0.06 | (0.07) | (0.06) | ||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
COMPOSITION OF LOANS HELD-FOR-INVESTMENT | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Commercial: | |||||||||||||||
C&I | $ | 1,021,722 | $ | 954,531 | $ | 917,148 | $ | 871,133 | $ | 837,627 | |||||
PPP | 141 | 155 | 169 | 202 | 2,301 | ||||||||||
Municipal | 215,977 | 221,379 | 221,090 | 214,852 | 200,577 | ||||||||||
Total Commercial | 1,237,840 | 1,176,065 | 1,138,407 | 1,086,187 | 1,040,505 | ||||||||||
Agricultural | 82,032 | 77,017 | 76,947 | 76,937 | 90,420 | ||||||||||
Real Estate: | |||||||||||||||
Construction & Development | 915,221 | 921,190 | 959,426 | 938,051 | 928,644 | ||||||||||
Farm | 335,644 | 307,706 | 306,322 | 268,139 | 250,028 | ||||||||||
Non-Owner Occupied CRE | 811,347 | 737,117 | 732,089 | 717,738 | 636,432 | ||||||||||
Owner Occupied CRE | 1,011,511 | 1,043,018 | 954,400 | 945,665 | 909,899 | ||||||||||
Residential | 1,698,679 | 1,628,841 | 1,575,758 | 1,536,180 | 1,412,125 | ||||||||||
Total Real Estate | 4,772,402 | 4,637,872 | 4,527,995 | 4,405,773 | 4,137,128 | ||||||||||
Consumer: | |||||||||||||||
Auto | 534,603 | 537,410 | 550,635 | 538,798 | 468,147 | ||||||||||
Non-Auto | 150,693 | 147,851 | 147,884 | 147,793 | 142,382 | ||||||||||
Total Consumer | 685,296 | 685,261 | 698,519 | 686,591 | 610,529 | ||||||||||
Total loans held-for-investment | $ | 6,777,570 | $ | 6,576,215 | $ | 6,441,868 | $ | 6,255,488 | $ | 5,878,582 | |||||
SUMMARY OF LOAN CLASSIFICATION | |||||||||||||||
Special Mention | $ | 66,960 | $ | 65,141 | $ | 49,382 | $ | 43,149 | $ | 46,512 | |||||
Substandard | 108,179 | 91,915 | 101,316 | 100,568 | 106,156 | ||||||||||
Doubtful | - | - | - | - | - | ||||||||||
Total classified loans | $ | 175,139 | $ | 157,056 | $ | 150,698 | $ | 143,717 | $ | 152,668 | |||||
NONPERFORMING ASSETS | |||||||||||||||
Nonaccrual loans | $ | 28,672 | $ | 24,171 | $ | 24,325 | $ | 24,604 | $ | 25,495 | |||||
Accruing loans 90 days past due | 552 | 22 | - | 15 | 22 | ||||||||||
Total nonperforming loans | 29,224 | 24,193 | 24,325 | 24,619 | 25,517 | ||||||||||
Foreclosed assets | 25 | 196 | - | - | - | ||||||||||
Total nonperforming assets | $ | 29,249 | $ | 24,389 | $ | 24,325 | $ | 24,619 | $ | 25,517 | |||||
As a % of loans held-for-investment and foreclosed assets | 0.43 | % | 0.37 | % | 0.38 | % | 0.39 | % | 0.43 | % | |||||
As a % of end of period total assets | 0.23 | 0.19 | 0.19 | 0.19 | 0.19 | ||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
CAPITAL RATIOS | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Common equity Tier 1 capital ratio | 18.48 | % | 18.68 | % | 18.22 | % | 18.03 | % | 18.50 | % | |||||
Tier 1 capital ratio | 18.48 | 18.68 | 18.22 | 18.03 | 18.50 | ||||||||||
Total capital ratio | 19.62 | 19.79 | 19.29 | 19.07 | 19.54 | ||||||||||
Tier 1 leverage ratio | 11.81 | 11.53 | 10.96 | 10.79 | 10.65 | ||||||||||
Tangible common equity ratio | 8.41 | 8.33 | 7.51 | 6.38 | 7.83 | ||||||||||
Equity/Assets ratio | 10.66 | 10.55 | 9.76 | 8.64 | 10.02 | ||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
NONINTEREST INCOME | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Trust fees | $ | 9,883 | $ | 9,845 | $ | 10,122 | $ | 10,314 | $ | 9,742 | |||||
Service charges on deposits | 6,310 | 6,036 | 6,397 | 6,399 | 6,038 | ||||||||||
Debit card fees | 6,720 | 4,936 | 5,899 | 5,587 | 9,868 | ||||||||||
Credit card fees | 711 | 609 | 632 | 651 | 700 | ||||||||||
Gain on sale and fees on mortgage loans | 3,534 | 2,974 | 2,904 | 4,070 | 5,728 | ||||||||||
Net gain on sale of available-for-sale securities | 46 | 12 | 131 | 334 | 1,648 | ||||||||||
Net gain (loss) on sale of foreclosed assets | (1) | 34 | - | 349 | 18 | ||||||||||
Net gain (loss) on sale of assets | - | 930 | (2) | 526 | 6 | ||||||||||
Interest on loan recoveries | 475 | 346 | 244 | 664 | 1,649 | ||||||||||
Other noninterest income | 2,269 | 2,285 | 2,197 | 2,049 | 1,920 | ||||||||||
Total noninterest income | $ | 29,947 | $ | 28,007 | $ | 28,524 | $ | 30,943 | $ | 37,317 | |||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 31,796 | $ | 31,431 | $ | 32,391 | $ | 33,129 | $ | 31,840 | |||||
Profit sharing expense | (30) | 30 | 565 | 763 | 1,307 | ||||||||||
Net occupancy expense | 3,423 | 3,430 | 3,350 | 3,440 | 3,292 | ||||||||||
Equipment expense | 2,198 | 2,127 | 2,053 | 2,396 | 2,346 | ||||||||||
FDIC insurance premiums | 1,417 | 1,654 | 1,021 | 917 | 904 | ||||||||||
Debit card expense | 3,221 | 3,199 | 3,054 | 3,013 | 3,200 | ||||||||||
Legal, tax and professional fees | 2,847 | 2,687 | 2,814 | 2,604 | 2,513 | ||||||||||
Audit fees | 563 | 540 | 451 | 451 | 450 | ||||||||||
Printing, stationery and supplies | 740 | 710 | 473 | 600 | 501 | ||||||||||
Amortization of intangible assets | 228 | 228 | 299 | 306 | 320 | ||||||||||
Advertising, meals and public relations | 1,789 | 1,475 | 1,646 | 1,692 | 1,554 | ||||||||||
Operational and other losses | 856 | 931 | 982 | 869 | 782 | ||||||||||
Software amortization and expense | 2,519 | 2,311 | 2,420 | 2,564 | 2,522 | ||||||||||
Other noninterest expense | 6,046 | 6,503 | 6,259 | 6,698 | 6,802 | ||||||||||
Total noninterest expense | $ | 57,613 | $ | 57,256 | $ | 57,778 | $ | 59,442 | $ | 58,333 | |||||
TAX EQUIVALENT YIELD ADJUSTMENT * | $ | 2,950 | $ | 3,131 | $ | 3,751 | $ | 3,807 | $ | 4,083 | |||||
*Calculations have been adjusted to remove effect of TEFRA disallowance | |||||||||||||||
Six Months Ended | |||||
June 30, | |||||
NONINTEREST INCOME | 2023 | 2022 | |||
Trust fees | $ | 19,728 | $ | 19,559 | |
Service charges on deposits | 12,346 | 11,744 | |||
Debit card fees | 11,656 | 18,795 | |||
Credit card fees | 1,320 | 1,301 | |||
Gain on sale and fees on mortgage loans | 6,508 | 12,061 | |||
Net gain on sale of available-for-sale securities | 58 | 1,679 | |||
Net gain on sale of foreclosed assets | 33 | 1,102 | |||
Net gain (loss) on sale of assets | 930 | (4) | |||
Interest on loan recoveries | 821 | 1,932 | |||
Other noninterest income | 4,554 | 4,029 | |||
Total noninterest income | $ | 57,954 | $ | 72,198 | |
NONINTEREST EXPENSE | |||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 63,227 | $ | 64,380 | |
Profit sharing expense | - | 2,905 | |||
Net occupancy expense | 6,853 | 6,517 | |||
Equipment expense | 4,325 | 4,603 | |||
FDIC insurance premiums | 3,071 | 1,773 | |||
Debit card expense | 6,420 | 6,164 | |||
Legal, tax and professional fees | 5,534 | 5,470 | |||
Audit fees | 1,103 | 901 | |||
Printing, stationery and supplies | 1,450 | 1,041 | |||
Amortization of intangible assets | 456 | 640 | |||
Advertising, meals and public relations | 3,264 | 3,047 | |||
Operational and other losses | 1,787 | 1,378 | |||
Software amortization and expense | 4,830 | 4,979 | |||
Other noninterest expense | 12,549 | 13,760 | |||
Total noninterest expense | $ | 114,869 | $ | 117,558 | |
TAX EQUIVALENT YIELD ADJUSTMENT * | $ | 6,080 | $ | 7,866 | |
*Calculations have been adjusted to remove effect of TEFRA disallowance | |||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
June 30, 2023 | Mar. 31, 2023 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 2,242 | $ | 30 | 5.45 | % | $ | 2,507 | $ | 32 | 5.12 | % | |||||||||
Interest-bearing demand deposits in nonaffiliated banks | 119,168 | 1,553 | 5.23 | 143,542 | 1,618 | 4.57 | |||||||||||||||
Taxable securities | 3,589,381 | 20,032 | 2.23 | 3,672,257 | 20,782 | 2.26 | |||||||||||||||
Tax-exempt securities | 1,653,418 | 11,799 | 2.85 | 1,750,533 | 12,743 | 2.91 | |||||||||||||||
Loans | 6,683,276 | 98,541 | 5.91 | 6,500,332 | 89,464 | 5.58 | |||||||||||||||
Total interest-earning assets | 12,047,485 | $ | 131,955 | 4.39 | % | 12,069,171 | $ | 124,639 | 4.19 | % | |||||||||||
Noninterest-earning assets | 842,284 | 863,342 | |||||||||||||||||||
Total assets | $ | 12,889,769 | $ | 12,932,513 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 7,037,677 | $ | 27,629 | 1.57 | % | $ | 7,080,518 | $ | 21,812 | 1.25 | % | |||||||||
Borrowings | 715,071 | 5,510 | 3.09 | 625,137 | 3,410 | 2.21 | |||||||||||||||
Total interest-bearing liabilities | 7,752,748 | $ | 33,139 | 1.71 | % | 7,705,655 | $ | 25,222 | 1.33 | % | |||||||||||
Noninterest-bearing deposits | 3,704,143 | 3,860,472 | |||||||||||||||||||
Other noninterest-bearing liabilities | 62,227 | 60,028 | |||||||||||||||||||
Shareholders' equity | 1,370,651 | 1,306,358 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,889,769 | $ | 12,932,513 | |||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 98,816 | 3.29 | % | $ | 99,417 | 3.34 | % | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
Dec. 31, 2022 | Sept. 30, 2022 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 3,165 | $ | 36 | 4.57 | % | $ | 3,107 | $ | 19 | 2.49 | % | |||||||||
Interest-bearing demand deposits in nonaffiliated banks | 160,200 | 1,579 | 3.91 | 248,929 | 1,413 | 2.25 | |||||||||||||||
Taxable securities | 3,761,206 | 21,152 | 2.25 | 4,039,107 | 20,799 | 2.06 | |||||||||||||||
Tax-exempt securities | 2,001,185 | 15,740 | 3.15 | 2,164,829 | 16,423 | 3.03 | |||||||||||||||
Loans | 6,391,703 | 86,381 | 5.36 | 6,082,649 | 77,880 | 5.08 | |||||||||||||||
Total interest-earning assets | 12,317,459 | $ | 124,888 | 4.02 | % | 12,538,621 | $ | 116,534 | 3.69 | % | |||||||||||
Noninterest-earning assets | 891,972 | 833,980 | |||||||||||||||||||
Total assets | $ | 13,209,431 | $ | 13,372,601 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 6,871,315 | $ | 13,123 | 0.76 | % | $ | 7,004,478 | $ | 8,787 | 0.50 | % | |||||||||
Borrowings | 927,250 | 3,977 | 1.70 | 768,096 | 784 | 0.40 | |||||||||||||||
Total interest-bearing liabilities | 7,798,565 | $ | 17,100 | 0.87 | % | 7,772,574 | $ | 9,571 | 0.49 | % | |||||||||||
Noninterest-bearing deposits | 4,179,494 | 4,178,675 | |||||||||||||||||||
Other noninterest-bearing liabilities | 60,085 | 61,320 | |||||||||||||||||||
Shareholders' equity | 1,171,287 | 1,360,032 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 13,209,431 | $ | 13,372,601 | |||||||||||||||||
Net interest income and margin (tax equivalent)* | $ | 107,788 | 3.47 | % | $ | 106,963 | 3.38 | % | |||||||||||||
Three Months Ended | |||||||||
June 30, 2022 | |||||||||
Average | Tax Equivalent | Yield / | |||||||
Balance | Interest | Rate | |||||||
Interest-earning assets: | |||||||||
Federal funds sold | $ | 1,466 | $ | 5 | 1.45 | % | |||
Interest-bearing demand deposits in nonaffiliated banks | 288,784 | 547 | 0.76 | ||||||
Taxable securities | 4,101,751 | 19,151 | 1.87 | ||||||
Tax-exempt securities | 2,376,324 | 17,873 | 3.01 | ||||||
Loans | 5,720,804 | 68,488 | 4.80 | ||||||
Total interest-earning assets | 12,489,129 | $ | 106,064 | 3.41 | % | ||||
Noninterest-earning assets | 825,711 | ||||||||
Total assets | $ | 13,314,840 | |||||||
Interest-bearing liabilities: | |||||||||
Deposits | $ | 7,049,041 | $ | 2,967 | 0.17 | % | |||
Borrowings | 730,477 | 232 | 0.13 | ||||||
Total interest-bearing liabilities | 7,779,518 | $ | 3,199 | 0.16 | % | ||||
Noninterest-bearing deposits | 4,064,207 | ||||||||
Other noninterest-bearing liabilities | 65,475 | ||||||||
Shareholders' equity | 1,405,640 | ||||||||
Total liabilities and shareholders' equity | $ | 13,314,840 | |||||||
Net interest income and margin (tax equivalent)* | $ | 102,865 | 3.30 | % | |||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 2,374 | $ | 62 | 5.28 | % | $ | 1,241 | $ | 7 | 1.07 | % | |||||||||
Interest-bearing deposits in nonaffiliated banks | 131,288 | 3,172 | 4.87 | 230,700 | 641 | 0.56 | |||||||||||||||
Taxable securities | 3,630,591 | 40,815 | 2.25 | 4,166,490 | 36,974 | 1.77 | |||||||||||||||
Tax exempt securities | 1,701,707 | 24,542 | 2.88 | 2,493,523 | 35,980 | 2.89 | |||||||||||||||
Loans | 6,592,310 | 188,002 | 5.75 | 5,604,815 | 133,254 | 4.79 | |||||||||||||||
Total interest-earning assets | 12,058,270 | $ | 256,593 | 4.29 | % | 12,496,769 | $ | 206,856 | 3.34 | % | |||||||||||
Noninterest-earning assets | 852,753 | 785,486 | |||||||||||||||||||
Total assets | $ | 12,911,023 | $ | 13,282,255 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 7,058,979 | $ | 49,441 | 1.41 | % | $ | 6,973,967 | $ | 4,336 | 0.13 | % | |||||||||
Borrowings | 670,352 | 8,920 | 2.68 | 755,755 | 433 | 0.12 | |||||||||||||||
Total interest-bearing liabilities | 7,729,331 | $ | 58,361 | 1.52 | % | 7,729,722 | $ | 4,769 | 0.12 | % | |||||||||||
Noninterest-bearing deposits | 3,781,876 | 3,946,483 | |||||||||||||||||||
Other noninterest-bearing liabilities | 61,134 | 65,239 | |||||||||||||||||||
Shareholders' equity | 1,338,682 | 1,540,811 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,911,023 | $ | 13,282,255 | |||||||||||||||||
Net interest income and margin (tax equivalent)* | $ | 198,232 | 3.32 | % | $ | 202,087 | 3.26 | % | |||||||||||||
*Calculations have been adjusted to remove effect of TEFRA disallowance | |||||||||||||||||||||
SOURCE First Financial Bankshares, Inc.
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