First Financial Bankshares Announces Third Quarter 2021 Earnings
ABILENE, Texas, Oct. 21, 2021 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the third quarter of 2021 of $58.93 million compared to earnings of $52.86 million for the same quarter a year ago. Basic and diluted earnings per share were $0.41 for the third quarter of 2021 compared with $0.37 for the same quarter a year ago.
"During the third quarter, we produced strong operating results driven by organic growth reflecting the increasing strength of our markets. The continued recovery of the Texas economy produced net loan growth, excluding PPP loans, of $162.95 million for the quarter and our overall credit metrics continued to improve. Additionally, customer deposits grew $111.42 million during the quarter driven by net deposit account openings of 13,774 year-to-date. We are focused on closing out 2021 with strong growth as we serve our communities across Texas. We appreciate the continued support of our customers, shareholders and associates," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc.
Net interest income for the third quarter of 2021 was $95.78 million compared to $89.21 million for the third quarter of 2020. Average-earning assets increased to $11.58 billion for the third quarter of 2021 compared to $9.80 billion a year ago. The net interest margin, on a taxable equivalent basis, was 3.41 percent for the third quarter of 2021 compared to 3.75 percent in the third quarter of 2020.
Information related to the Company's Paycheck Protection Program ("PPP") loans is included in the following table (dollars in thousands):
PPP Loans Originated | PPP Amounts as of September 30, 2021 | ||||||||||
Number | Amount | Number of Loans | Period-End | Unamortized | Recognized | ||||||
PPP Round 1 | 6,530 | $ 703,450 | 51 | $ 4,324 | $ 63 | $ 1,044 | |||||
PPP Round 2 | 3,179 | 267,423 | 1,298 | 135,010 | 6,025 | 6,590 | |||||
PPP Total | 9,709 | $ 970,873 | 1,349 | $ 139,334 | $ 6,088 | $ 7,634 | |||||
PPP loan balances declined $181.06 million from June 30, 2021 and accounted for $229.81 million in average balances for the third quarter of 2021 compared to $482.00 in the second quarter of 2021. Remaining unamortized fees continue to be amortized over the shorter of the repayment period or the contractual life of 24 to 60 months.
The Company recorded no provision for credit losses for the third quarter of 2021 compared to a provision for credit losses of $9.00 million for the third quarter of 2020. The Company's allowance for loan losses for the third quarter of 2021 reflected the continued improvement in overall asset quality offset by loan growth.
For the third quarter of 2021, net recoveries totaled $1.23 million compared to net charge-offs of $409 thousand for the third quarter of 2020. At September 30, 2021, the allowance for credit losses totaled $63.37 million, or 1.20 percent of loans held-for-investment ("loans" hereafter), or 1.23 percent of loans, excluding PPP loans, compared to $76.04 million at September 30, 2020, or 1.44 percent of loans, or 1.66 percent of loans, excluding PPP loans. Additionally, the reserve for unfunded commitments totaled $6.75 million at September 30, 2021 compared to $2.31 million at September 30, 2020. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.48 percent at September 30, 2021, compared with 0.81 percent at September 30, 2020. Classified loans totaled $165.77 million at September 30, 2021, compared to $202.04 million at September 30, 2020.
Noninterest income in the third quarter of 2021 was $37.73 million compared to $38.58 million in the third quarter of 2020, as a result of the following:
- Trust fees increased to $9.48 million in the third quarter of 2021 from $7.46 million in the third quarter of 2020. The fair value of trust assets managed increased to $8.08 billion at September 30, 2021 compared to $6.95 billion at September 30, 2020.
- Service charges on deposits increased to $5.67 million in the third quarter of 2021 compared with $5.01 million in the third quarter of 2020.
- ATM, interchange and credit card fees increased to $9.79 million in the third quarter of 2021 from $8.64 million in the third quarter of 2020, driven by continued growth in the number of debit cards issued and overall customer utilization.
- Mortgage income was $8.79 million in the third quarter of 2021 compared to $15.23 million in the third quarter of 2020 due to lower overall origination volumes.
- Loan recoveries during the third quarter of 2021 totaled $1.75 million compared to $202 thousand in the third quarter of 2020.
Noninterest expense for the third quarter of 2021 totaled $62.94 million compared to $55.59 million in the third quarter of 2020, as a result of the following:
- Salary, commissions and employee benefit costs totaled $37.09 million for the third quarter of 2021, compared to $33.65 million in the third quarter of 2020. The increase over the prior year was primarily driven by increases effective March 1, 2021 from annual merit-based pay and increases in profit sharing and incentive compensation accruals during the third quarter of 2021.
The Company's efficiency ratio was 45.88 percent for the third quarter of 2021 compared to 42.45 percent for the third quarter of 2020.
As of September 30, 2021, consolidated assets for the Company totaled $12.54 billion compared to $10.57 billion at September 30, 2020. Loans totaled $5.29 billion at September 30, 2021, compared with loans of $5.29 billion at September 30, 2020. Excluding PPP loans, loans have grown $557.21 million or 12.14 percent, from September 30, 2020 balances. Deposits totaled $9.89 billion at September 30, 2021, compared to $8.29 billion at September 30, 2020, driven by continued organic growth. Shareholders' equity rose to $1.73 billion as of September 30, 2021, compared to $1.62 billion at September 30, 2020.
About First Financial Bankshares, Inc.
Headquartered in Abilene, Texas, First Financial Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 78 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Kingwood, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with ten locations and First Technology Services, Inc., a technology operating company.
The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at http://www.ffin.com.
Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect", "plan", "anticipate", "target", "forecast" and "goal". Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; economic impact of oil and gas prices and the pandemic, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents and Filings" on the Company's Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||||
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||
As of | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
ASSETS | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | ||||||||||||
Cash and due from banks | $ | 201,901 | $ | 190,061 | $ | 190,350 | $ | 211,113 | $ | 175,088 | |||||||
Interest-bearing deposits in banks | 359,241 | 654,531 | 893,221 | 517,971 | 58,933 | ||||||||||||
Investment securities | 6,119,984 | 5,578,048 | 5,109,631 | 4,393,029 | 4,431,280 | ||||||||||||
Loans, held-for-investment, excluding PPP Loans | 5,147,160 | 4,984,210 | 4,790,752 | 4,687,370 | 4,589,948 | ||||||||||||
PPP loans | 139,334 | 320,392 | 531,810 | 483,663 | 703,731 | ||||||||||||
Total loans, held-for-investment | 5,286,494 | 5,304,602 | 5,322,562 | 5,171,033 | 5,293,679 | ||||||||||||
Allowance for loan losses | (63,370) | (62,138) | (62,974) | (66,534) | (76,038) | ||||||||||||
Net loans, held-for-investment | 5,223,124 | 5,242,464 | 5,259,588 | 5,104,499 | 5,217,641 | ||||||||||||
Loans, held-for-sale | 47,721 | 61,802 | 65,405 | 83,969 | 101,055 | ||||||||||||
Premises and equipment, net | 147,516 | 147,655 | 142,415 | 142,269 | 141,002 | ||||||||||||
Goodwill | 313,481 | 313,481 | 313,481 | 313,481 | 313,481 | ||||||||||||
Other intangible assets | 3,689 | 4,087 | 4,499 | 4,911 | 5,394 | ||||||||||||
Other assets | 126,601 | 136,954 | 124,297 | 133,258 | 123,778 | ||||||||||||
Total assets | $ | 12,543,258 | $ | 12,329,083 | $ | 12,102,887 | $ | 10,904,500 | $ | 10,567,652 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Noninterest-bearing deposits | $ | 3,574,405 | $ | 3,427,038 | $ | 3,350,145 | $ | 2,982,697 | $ | 2,950,407 | |||||||
Interest-bearing deposits | 6,318,712 | 6,354,656 | 6,063,302 | 5,693,120 | 5,344,481 | ||||||||||||
Total deposits | 9,893,117 | 9,781,694 | 9,413,447 | 8,675,817 | 8,294,888 | ||||||||||||
Borrowings | 648,679 | 549,969 | 548,604 | 430,093 | 503,163 | ||||||||||||
Trade date payable | 174,236 | 189,838 | 381,871 | 14,641 | 53,730 | ||||||||||||
Other liabilities | 93,491 | 87,213 | 93,537 | 105,759 | 96,370 | ||||||||||||
Shareholders' equity | 1,733,735 | 1,720,369 | 1,665,428 | 1,678,190 | 1,619,501 | ||||||||||||
Total liabilities and shareholders' equity | $ | 12,543,258 | $ | 12,329,083 | $ | 12,102,887 | $ | 10,904,500 | $ | 10,567,652 | |||||||
Quarter Ended | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
INCOME STATEMENTS | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | ||||||||||||
Interest income | $ | 97,198 | $ | 92,602 | $ | 90,610 | $ | 92,457 | $ | 91,373 | |||||||
Interest expense | 1,416 | 1,653 | 1,786 | 1,920 | 2,163 | ||||||||||||
Net interest income | 95,782 | 90,949 | 88,824 | 90,537 | 89,210 | ||||||||||||
Provision for credit losses | - | (1,206) | (1,997) | (8,033) | 9,000 | ||||||||||||
Net interest income after provisions for credit losses | 95,782 | 92,155 | 90,821 | 98,570 | 80,210 | ||||||||||||
Noninterest income | 37,726 | 34,673 | 34,874 | 35,709 | 38,575 | ||||||||||||
Noninterest expense | 62,939 | 59,374 | 57,723 | 63,705 | 55,593 | ||||||||||||
Net income before income taxes | 70,569 | 67,454 | 67,972 | 70,574 | 63,192 | ||||||||||||
Income tax expense | 11,641 | 11,075 | 11,054 | 12,099 | 10,335 | ||||||||||||
Net income | $ | 58,928 | $ | 56,379 | $ | 56,918 | $ | 58,475 | $ | 52,857 | |||||||
PER COMMON SHARE DATA | |||||||||||||||||
Net income - basic | $ | 0.41 | $ | 0.40 | $ | 0.40 | $ | 0.41 | $ | 0.37 | |||||||
Net income - diluted | 0.41 | 0.39 | 0.40 | 0.41 | 0.37 | ||||||||||||
Cash dividends declared | 0.15 | 0.15 | 0.13 | 0.13 | 0.13 | ||||||||||||
Book value | 12.17 | 12.08 | 11.70 | 11.80 | 11.40 | ||||||||||||
Tangible book value | 9.94 | 9.85 | 9.47 | 9.57 | 9.15 | ||||||||||||
Market value | 45.95 | 49.13 | 46.73 | 36.17 | 27.91 | ||||||||||||
Shares outstanding - end of period | 142,467,687 | 142,359,774 | 142,285,611 | 142,161,834 | 142,121,595 | ||||||||||||
Average outstanding shares - basic | 142,334,449 | 142,245,555 | 142,146,275 | 142,057,705 | 141,980,707 | ||||||||||||
Average outstanding shares - diluted | 143,218,920 | 143,164,611 | 143,002,658 | 142,644,088 | 142,529,242 | ||||||||||||
PERFORMANCE RATIOS | |||||||||||||||||
Return on average assets | 1.90 | % | 1.89 | % | 2.05 | % | 2.19 | % | 2.01 | % | |||||||
Return on average equity | 13.43 | 13.38 | 13.83 | 14.27 | 13.14 | ||||||||||||
Return on average tangible equity | 16.43 | 16.48 | 17.09 | 17.74 | 16.41 | ||||||||||||
Net interest margin (tax equivalent) | 3.41 | 3.36 | 3.55 | 3.75 | 3.75 | ||||||||||||
Efficiency ratio | 45.88 | 45.94 | 45.36 | 49.15 | 42.45 | ||||||||||||
Nine Months Ended | |||||||||||||||||
Sept. 30, | |||||||||||||||||
INCOME STATEMENTS | 2021 | 2020 | |||||||||||||||
Interest income | $ | 280,410 | $ | 271,671 | |||||||||||||
Interest expense | 4,855 | 12,323 | |||||||||||||||
Net interest income | 275,555 | 259,348 | |||||||||||||||
Provision for credit losses | (3,203) | 27,550 | |||||||||||||||
Net interest income after provisions for credit losses | 278,758 | 231,798 | |||||||||||||||
Noninterest income | 107,273 | 104,226 | |||||||||||||||
Noninterest expense | 180,036 | 164,233 | |||||||||||||||
Net income before income taxes | 205,995 | 171,791 | |||||||||||||||
Income tax expense | 33,770 | 28,233 | |||||||||||||||
Net income | $ | 172,225 | $ | 143,558 | |||||||||||||
PER COMMON SHARE DATA | |||||||||||||||||
Net income - basic | $ | 1.21 | $ | 1.01 | |||||||||||||
Net income - diluted | 1.20 | 1.01 | |||||||||||||||
Cash dividends declared | 0.43 | 0.38 | |||||||||||||||
Book Value | 12.17 | 11.40 | |||||||||||||||
Tangible book value | 9.94 | 9.15 | |||||||||||||||
Market Value | 45.95 | 27.91 | |||||||||||||||
Shares outstanding - end of period | 142,467,687 | 142,121,595 | |||||||||||||||
Average outstanding shares - basic | 142,242,783 | 142,023,930 | |||||||||||||||
Average outstanding shares - diluted | 143,183,792 | 142,519,448 | |||||||||||||||
PERFORMANCE RATIOS | |||||||||||||||||
Return on average assets | 1.94 | % | 1.91 | % | |||||||||||||
Return on average equity | 13.55 | 12.46 | |||||||||||||||
Return on average tangible equity | 16.66 | 15.71 | |||||||||||||||
Net interest margin (tax equivalent) | 3.43 | 3.81 | |||||||||||||||
Efficiency ratio | 45.73 | 44.21 | |||||||||||||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | ||||||||||||
Balance at beginning of period | $ | 62,138 | $ | 62,974 | $ | 66,534 | $ | 76,038 | $ | 68,947 | |||||||
Loans charged off | (1,475) | (392) | (574) | (1,339) | (853) | ||||||||||||
Loan recoveries | 2,707 | 595 | 443 | 778 | 444 | ||||||||||||
Net recoveries (charge-offs) | 1,232 | 203 | (131) | (561) | (409) | ||||||||||||
Initial adoption of ASU 2016-13 (CECL) - recorded in retained earnings | - | - | - | (619) | - | ||||||||||||
Reclassification of credit marks on purchased credit deteriorated (PCD) loans | - | - | - | 1,678 | - | ||||||||||||
Provision for loan losses | - | (1,039) | (3,429) | (10,002) | 7,500 | ||||||||||||
Balance at end of period | $ | 63,370 | $ | 62,138 | $ | 62,974 | $ | 66,534 | $ | 76,038 | |||||||
ALLOWANCE FOR UNFUNDED COMMITMENTS | |||||||||||||||||
Balance at beginning of period | $ | 6,751 | $ | 6,918 | $ | 5,486 | $ | 2,309 | $ | 809 | |||||||
Initial adoption of ASU 2016-13 (CECL) - recorded in retained earnings | - | - | - | 1,208 | - | ||||||||||||
Provision for unfunded commitments | - | (167) | 1,432 | 1,969 | 1,500 | ||||||||||||
Balance at end of period | $ | 6,751 | $ | 6,751 | $ | 6,918 | $ | 5,486 | $ | 2,309 | |||||||
Allowance for loan losses / | |||||||||||||||||
period-end loans held-for-investment | 1.20 | % | 1.17 | % | 1.18 | % | 1.29 | % | 1.44 | % | |||||||
Allowance for loan losses / | |||||||||||||||||
nonperforming loans | 250.92 | 208.45 | 160.00 | 155.61 | 177.99 | ||||||||||||
Net charge-offs (recoveries) / average total loans | |||||||||||||||||
(annualized) | (0.09) | (0.02) | 0.01 | 0.04 | 0.03 | ||||||||||||
Quarter Ended | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
COMPOSITION OF LOANS HELD-FOR-INVESTMENT | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | ||||||||||||
Commercial: | |||||||||||||||||
C&I | $ | 680,263 | $ | 662,711 | $ | 646,316 | $ | 647,719 | $ | N/A | |||||||
PPP | 139,334 | 320,392 | 531,810 | 483,663 | 703,731 | ||||||||||||
Municipal | 165,847 | 179,356 | 176,949 | 181,325 | N/A | ||||||||||||
Total Commercial | 985,444 | 1,162,459 | 1,355,075 | 1,312,707 | 1,488,345 | ||||||||||||
Agriculture | 98,947 | 95,212 | 90,366 | 94,864 | 93,972 | ||||||||||||
Real Estate: | |||||||||||||||||
Construction & Development | 656,530 | 550,928 | 587,928 | 553,959 | N/A | ||||||||||||
Farm | 203,064 | 185,288 | 162,046 | 152,237 | N/A | ||||||||||||
Non-Owner Occupied CRE | 674,958 | 673,608 | 650,144 | 617,686 | N/A | ||||||||||||
Owner Occupied CRE | 824,231 | 820,055 | 759,906 | 746,974 | N/A | ||||||||||||
Residential | 1,328,798 | 1,328,474 | 1,254,727 | 1,248,409 | N/A | ||||||||||||
Total Real Estate | 3,687,581 | 3,558,353 | 3,414,751 | 3,319,265 | 3,287,605 | ||||||||||||
Consumer: | |||||||||||||||||
Auto | 394,072 | 383,764 | 370,027 | 353,595 | N/A | ||||||||||||
Non-Auto | 120,450 | 104,814 | 92,343 | 90,602 | N/A | ||||||||||||
Total Consumer | 514,522 | 488,578 | 462,370 | 444,197 | 423,757 | ||||||||||||
Total loans held-for-investment | $ | 5,286,494 | $ | 5,304,602 | $ | 5,322,562 | $ | 5,171,033 | $ | 5,293,679 | |||||||
SUMMARY OF LOAN CLASSIFICATION | |||||||||||||||||
Special Mention | $ | 53,620 | $ | 54,497 | $ | 61,866 | $ | 56,585 | $ | 66,033 | |||||||
Substandard | 112,151 | 120,497 | 128,550 | 140,866 | 136,010 | ||||||||||||
Doubtful | - | - | - | - | - | ||||||||||||
Total classified loans | $ | 165,771 | $ | 174,994 | $ | 190,416 | $ | 197,451 | $ | 202,043 | |||||||
NONPERFORMING ASSETS | |||||||||||||||||
Nonaccrual loans | $ | 25,210 | $ | 29,786 | $ | 39,333 | $ | 42,619 | $ | 42,673 | |||||||
Accruing troubled debt restructured loans | 22 | 23 | 23 | 24 | 25 | ||||||||||||
Accruing loans 90 days past due | 23 | - | 2 | 113 | 23 | ||||||||||||
Total nonperforming loans | 25,255 | 29,809 | 39,358 | 42,756 | 42,721 | ||||||||||||
Foreclosed assets | 28 | 305 | 300 | 142 | 331 | ||||||||||||
Total nonperforming assets | $ | 25,283 | $ | 30,114 | $ | 39,658 | $ | 42,898 | $ | 43,052 | |||||||
As a % of loans held-for-investment and foreclosed assets | 0.48 | % | 0.57 | % | 0.75 | % | 0.83 | % | 0.81 | % | |||||||
As a % of end of period total assets | 0.20 | 0.24 | 0.33 | 0.39 | 0.41 | ||||||||||||
OIL AND GAS PORTFOLIO INFORMATION * | |||||||||||||||||
Oil and gas loans | $ | 96,469 | $ | 103,166 | $ | 105,261 | $ | 106,237 | $ | 118,567 | |||||||
Oil and gas loans as a % of total loans held-for-investment | 1.87 | % | 2.07 | % | 2.20 | % | 2.27 | % | 2.58 | % | |||||||
Classified oil and gas loans | $ | 10,831 | $ | 13,090 | $ | 10,079 | $ | 13,298 | $ | 26,823 | |||||||
Nonaccrual oil and gas loans | 3,058 | 3,986 | 4,759 | 4,774 | 6,800 | ||||||||||||
Net charge-offs (recoveries) on oil and gas loans | (71) | 59 | 40 | 24 | - | ||||||||||||
* Excluding PPP loans | |||||||||||||||||
RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION * | |||||||||||||||||
Retail loans | $ | 348,797 | $ | 326,409 | $ | 282,310 | $ | 216,244 | $ | 229,386 | |||||||
Restaurant loans | 59,031 | 56,997 | 51,772 | 48,618 | 39,523 | ||||||||||||
Hotel loans | 60,733 | 71,008 | 71,435 | 71,716 | 63,273 | ||||||||||||
Other hospitality loans | 27,369 | 27,929 | 24,014 | 21,970 | 26,041 | ||||||||||||
Travel loans | 593 | 790 | 664 | 780 | 801 | ||||||||||||
Total retail/restaurant/hospitality loans | $ | 496,523 | $ | 483,133 | $ | 430,195 | $ | 359,328 | $ | 359,024 | |||||||
Retail/Restaurant/Hospitality loans as a % of total loans held-for-investment | 9.65 | % | 9.69 | % | 8.98 | % | 7.67 | % | 7.82 | % | |||||||
Classified Retail/Restaurant/Hospitality loans | $ | 34,341 | $ | 43,635 | $ | 45,214 | $ | 31,192 | $ | 28,171 | |||||||
Nonaccrual Retail/Restaurant/Hospitality loans | 1,995 | 5,600 | 6,575 | 5,975 | 5,689 | ||||||||||||
Net Charge-offs (recoveries) on Retail/Restaurant/Hospitality loans | (506) | - | - | 561 | 26 | ||||||||||||
* Excluding PPP loans | |||||||||||||||||
CAPITAL RATIOS | |||||||||||||||||
Common equity Tier 1 capital ratio | 19.71 | % | 20.04 | % | 20.32 | % | 20.79 | % | 20.56 | % | |||||||
Tier 1 capital ratio | 19.71 | 20.04 | 20.32 | 20.79 | 20.56 | ||||||||||||
Total capital ratio | 20.76 | 21.12 | 21.47 | 22.03 | 21.82 | ||||||||||||
Tier 1 leverage ratio | 11.19 | 11.10 | 11.55 | 11.86 | 11.65 | ||||||||||||
Tangible common equity ratio | 11.90 | 11.75 | 12.35 | 12.71 | 12.61 | ||||||||||||
Equity/Assets ratio | 13.82 | 13.95 | 13.76 | 15.39 | 15.33 | ||||||||||||
Quarter Ended | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
NONINTEREST INCOME | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | ||||||||||||
Trust fees | $ | 9,484 | $ | 8,692 | $ | 8,299 | $ | 7,672 | $ | 7,461 | |||||||
Service charges on deposits | 5,673 | 4,928 | 4,793 | 5,330 | 5,009 | ||||||||||||
ATM, interchange and credit card fees | 9,793 | 9,853 | 8,677 | 8,376 | 8,644 | ||||||||||||
Gain on sale and fees on mortgage loans | 8,788 | 8,291 | 9,894 | 11,116 | 15,228 | ||||||||||||
Net gain on sale of available-for-sale securities | 1 | 5 | 808 | 23 | 36 | ||||||||||||
Net gain on sale of foreclosed assets | 27 | 1 | 55 | 87 | 19 | ||||||||||||
Net gain (loss) on sale of assets | (6) | 74 | 145 | 22 | (2) | ||||||||||||
Interest on loan recoveries | 1,746 | 704 | 382 | 235 | 202 | ||||||||||||
Other noninterest income | 2,220 | 2,125 | 1,821 | 2,848 | 1,978 | ||||||||||||
Total noninterest income | $ | 37,726 | $ | 34,673 | $ | 34,874 | $ | 35,709 | $ | 38,575 | |||||||
NONINTEREST EXPENSE | |||||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 34,460 | $ | 32,936 | $ | 32,636 | $ | 34,773 | $ | 32,104 | |||||||
Profit sharing expense | 2,630 | 2,110 | 2,295 | 6,245 | 1,545 | ||||||||||||
Net occupancy expense | 3,288 | 3,241 | 3,147 | 3,067 | 3,193 | ||||||||||||
Equipment expense | 2,450 | 2,177 | 2,164 | 2,154 | 2,157 | ||||||||||||
FDIC insurance premiums | 815 | 766 | 701 | 663 | 587 | ||||||||||||
ATM, interchange and credit card expenses | 2,935 | 3,039 | 2,772 | 2,811 | 2,829 | ||||||||||||
Legal, tax and professional fees | 2,893 | 3,352 | 2,726 | 2,302 | 2,615 | ||||||||||||
Audit fees | 466 | 430 | 440 | 407 | 526 | ||||||||||||
Printing, stationery and supplies | 432 | 489 | 325 | 449 | 615 | ||||||||||||
Amortization of intangible assets | 398 | 412 | 412 | 483 | 490 | ||||||||||||
Advertising and public relations | 1,746 | 1,392 | 1,388 | 1,600 | 797 | ||||||||||||
Operational and other losses | 1,087 | 534 | 287 | 537 | 621 | ||||||||||||
Software amortization and expense | 2,855 | 2,829 | 2,619 | 2,563 | 2,265 | ||||||||||||
Other noninterest expense | 6,484 | 5,667 | 5,811 | 5,651 | 5,249 | ||||||||||||
Total noninterest expense | $ | 62,939 | $ | 59,374 | $ | 57,723 | $ | 63,705 | $ | 55,593 | |||||||
TAX EQUIVALENT YIELD ADJUSTMENT | $ | 3,670 | $ | 3,633 | $ | 3,547 | $ | 3,355 | $ | 3,170 | |||||||
Nine Months Ended | |||||||||||||||||
Sept. 30, | |||||||||||||||||
NONINTEREST INCOME | 2021 | 2020 | |||||||||||||||
Trust fees | $ | 26,475 | $ | 21,859 | |||||||||||||
Service charges on deposits | 15,394 | 15,242 | |||||||||||||||
ATM, interchange and credit card fees | 28,323 | 24,093 | |||||||||||||||
Gain on sale and fees on mortgage loans | 26,973 | 32,756 | |||||||||||||||
Net gain (loss) on sale of available-for-sale securities | 814 | 3,610 | |||||||||||||||
Net gain (loss) on sale of foreclosed assets | 83 | 72 | |||||||||||||||
Net gain (loss) on sale of assets | 213 | 90 | |||||||||||||||
Interest on loan recoveries | 2,832 | 621 | |||||||||||||||
Other noninterest income | 6,166 | 5,883 | |||||||||||||||
Total noninterest income | $ | 107,273 | $ | 104,226 | |||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 100,032 | $ | 89,610 | |||||||||||||
Profit sharing expense | 7,035 | 4,495 | |||||||||||||||
Net occupancy expense | 9,676 | 9,321 | |||||||||||||||
Equipment expense | 6,791 | 6,242 | |||||||||||||||
FDIC insurance premiums | 2,282 | 1,095 | |||||||||||||||
ATM, interchange and credit card expenses | 8,746 | 8,424 | |||||||||||||||
Legal, tax and professional fees | 8,971 | 8,467 | |||||||||||||||
Audit fees | 1,336 | 1,676 | |||||||||||||||
Printing, stationery and supplies | 1,246 | 1,714 | |||||||||||||||
Amortization of intangible assets | 1,222 | 1,507 | |||||||||||||||
Advertising and public relations | 4,526 | 3,003 | |||||||||||||||
Operational and other losses | 1,908 | 1,925 | |||||||||||||||
Software amortization and expense | 8,303 | 6,299 | |||||||||||||||
Other noninterest expense | 17,962 | 20,455 | |||||||||||||||
Total noninterest expense | $ | 180,036 | $ | 164,233 | |||||||||||||
TAX EQUIVALENT YIELD ADJUSTMENT | $ | 10,850 | $ | 7,905 | |||||||||||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
Sept. 30, 2021 | June 30, 2021 | ||||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Federal funds sold | $ | 1,554 | $ | 2 | 0.51 | % | $ | 3,049 | $ | 4 | 0.54 | % | |||||||||||
Interest-bearing deposits in nonaffiliated banks | 612,551 | 236 | 0.15 | 796,835 | 211 | 0.11 | |||||||||||||||||
Taxable securities | 3,081,215 | 12,122 | 1.57 | 2,656,211 | 11,449 | 1.72 | |||||||||||||||||
Tax exempt securities | 2,542,606 | 17,701 | 2.78 | 2,461,924 | 17,410 | 2.83 | |||||||||||||||||
Loans | 5,337,807 | 70,807 | 5.26 | 5,383,781 | 67,161 | 5.00 | |||||||||||||||||
Total interest-earning assets | 11,575,733 | $ | 100,868 | 3.46 | % | 11,301,800 | $ | 96,235 | 3.42 | % | |||||||||||||
Noninterest-earning assets | 705,099 | 692,282 | |||||||||||||||||||||
Total assets | $ | 12,280,832 | $ | 11,994,082 | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits | $ | 6,346,267 | $ | 1,340 | 0.08 | % | $ | 6,229,991 | $ | 1,560 | 0.10 | % | |||||||||||
Borrowings | 599,934 | 76 | 0.05 | 527,669 | 93 | 0.07 | |||||||||||||||||
Total interest-bearing liabilities | 6,946,201 | $ | 1,416 | 0.08 | % | 6,757,660 | $ | 1,653 | 0.10 | % | |||||||||||||
Noninterest-bearing deposits | 3,490,685 | 3,439,683 | |||||||||||||||||||||
Other noninterest-bearing liabilities | 103,446 | 106,994 | |||||||||||||||||||||
Shareholders' equity | 1,740,500 | 1,689,745 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,280,832 | $ | 11,994,082 | |||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 99,452 | 3.41 | % | $ | 94,582 | 3.36 | % | |||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Federal funds sold | $ | 1,942 | $ | 3 | 0.58 | % | $ | - | $ | - | - | % | |||||||||||
Interest-bearing deposits in nonaffiliated banks | 637,129 | 159 | 0.10 | 195,637 | 50 | 0.10 | |||||||||||||||||
Taxable securities | 2,251,419 | 10,264 | 1.82 | 2,086,419 | 10,708 | 2.05 | |||||||||||||||||
Tax exempt securities | 2,368,615 | 16,979 | 2.87 | 2,318,912 | 16,733 | 2.89 | |||||||||||||||||
Loans | 5,296,149 | 66,753 | 5.11 | 5,356,229 | 68,321 | 5.07 | |||||||||||||||||
Total interest-earning assets | 10,555,254 | $ | 94,158 | 3.62 | % | 9,957,197 | $ | 95,812 | 3.83 | % | |||||||||||||
Noninterest-earning assets | 700,550 | 674,229 | |||||||||||||||||||||
Total assets | $ | 11,255,804 | $ | 10,631,426 | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits | $ | 5,916,237 | $ | 1,696 | 0.12 | % | $ | 5,479,873 | $ | 1,826 | 0.13 | % | |||||||||||
Borrowings | 456,620 | 91 | 0.08 | 428,117 | 94 | 0.09 | |||||||||||||||||
Total interest-bearing liabilities | 6,372,857 | $ | 1,787 | 0.11 | % | 5,907,990 | $ | 1,920 | 0.13 | % | |||||||||||||
Noninterest-bearing deposits | 3,114,656 | 2,987,572 | |||||||||||||||||||||
Other noninterest-bearing liabilities | 99,581 | 106,065 | |||||||||||||||||||||
Shareholders' equity | 1,668,710 | 1,629,799 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 11,255,804 | $ | 10,631,426 | |||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 92,371 | 3.55 | % | $ | 93,892 | 3.75 | % | |||||||||||||||
Three Months Ended | |||||||||||||||||||||||
Sept. 30, 2020 | |||||||||||||||||||||||
Average | Tax Equivalent | Yield / | |||||||||||||||||||||
Balance | Interest | Rate | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Federal funds sold | $ | 2,009 | $ | 3 | 0.51 | % | |||||||||||||||||
Interest-bearing deposits in nonaffiliated banks | 223,104 | 59 | 0.10 | ||||||||||||||||||||
Taxable securities | 2,187,547 | 12,063 | 2.21 | ||||||||||||||||||||
Tax exempt securities | 2,058,032 | 15,737 | 3.06 | ||||||||||||||||||||
Loans | 5,334,174 | 66,681 | 4.97 | ||||||||||||||||||||
Total interest-earning assets | 9,804,866 | $ | 94,543 | 3.84 | % | ||||||||||||||||||
Noninterest-earning assets | 671,374 | ||||||||||||||||||||||
Total assets | $ | 10,476,240 | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits | $ | 5,270,600 | $ | 2,064 | 0.16 | % | |||||||||||||||||
Borrowings | 482,555 | 99 | 0.08 | ||||||||||||||||||||
Total interest-bearing liabilities | 5,753,155 | $ | 2,163 | 0.15 | % | ||||||||||||||||||
Noninterest-bearing deposits | 3,016,700 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 106,295 | ||||||||||||||||||||||
Shareholders' equity | 1,600,090 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 10,476,240 | |||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 92,380 | 3.75 | % | |||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Sept. 30, 2021 | Sept. 30, 2020 | ||||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Federal funds sold | $ | 2,181 | $ | 9 | 0.55 | % | $ | 1,854 | $ | 14 | 0.99 | % | |||||||||||
Interest-bearing deposits in nonaffiliated banks | 682,082 | 606 | 0.12 | 267,850 | 889 | 0.44 | |||||||||||||||||
Taxable securities | 2,665,988 | 33,834 | 1.69 | 2,283,064 | 40,748 | 2.38 | |||||||||||||||||
Tax exempt securities | 2,458,352 | 52,090 | 2.83 | 1,736,250 | 41,670 | 3.20 | |||||||||||||||||
Loans | 5,339,398 | 204,721 | 5.13 | 5,084,136 | 196,255 | 5.16 | |||||||||||||||||
Total interest-earning assets | 11,148,001 | $ | 291,260 | 3.49 | % | 9,373,154 | $ | 279,576 | 3.98 | % | |||||||||||||
Noninterest-earning assets | 699,326 | 673,325 | |||||||||||||||||||||
Total assets | $ | 11,847,327 | $ | 10,046,479 | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits | $ | 6,165,740 | $ | 4,595 | 0.10 | % | $ | 5,104,096 | $ | 11,293 | 0.30 | % | |||||||||||
Borrowings | 528,599 | 260 | 0.07 | 606,291 | 1,030 | 0.23 | |||||||||||||||||
Total interest-bearing liabilities | 6,694,339 | $ | 4,855 | 0.10 | % | 5,710,387 | $ | 12,323 | 0.29 | % | |||||||||||||
Noninterest-bearing deposits | 3,349,719 | 2,714,173 | |||||||||||||||||||||
Other noninterest-bearing liabilities | 103,354 | 82,670 | |||||||||||||||||||||
Shareholders' equity | 1,699,915 | 1,539,249 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 11,847,327 | $ | 10,046,479 | |||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 286,405 | 3.43 | % | $ | 267,253 | 3.81 | % | |||||||||||||||
SOURCE First Financial Bankshares, Inc.
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