First Financial Bankshares Announces Third Quarter Earnings Results
ABILENE, Texas, Oct. 18, 2018 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the third quarter of 2018 of $40.05 million, up $10.68 million when compared with earnings of $29.37 million in the same quarter last year. Basic earnings per share were $0.59 for the third quarter of 2018 compared with $0.44 in the same quarter a year ago. Contributing to the increase in net earnings and earnings per share in the current quarter when compared with the same quarter a year ago were the Kingwood acquisition (see below) and the enactment of the Tax Cuts and Jobs Act which was effective January 1, 2018, and reduced the corporate income tax rate from 35 percent to 21 percent. Without this tax adjustment, net earnings for the third quarter of 2018 would have been $34.88 million with an adjusted basic earnings per share of $0.52.
All amounts for the three and nine months ended September 30, 2018, include the results of the Company's acquisition of Commercial Bancshares, Inc. and its wholly-owned subsidiary, Commercial State Bank, Kingwood, Texas, which was effective January 1, 2018. As of the acquisition date, Commercial State Bank had total assets of approximately $390.20 million, total loans of approximately $271.50 million and total deposits of approximately $345.90 million.
Net interest income for the third quarter of 2018 was $69.43 million compared with $59.69 million in the same quarter of 2017. The net interest margin, on a taxable equivalent basis, was 4.01 percent for the third quarter of 2018 compared to 3.92 percent for the second quarter of 2018 and 3.94 percent for the third quarter of 2017. Included in interest income for the third quarter of 2018 was $750 thousand, or four basis points in net interest margin, related to discount accretion from fair value accounting related to the Kingwood and Orange acquisitions.
The provision for loan losses was $1.45 million in the third quarter of 2018 compared with $1.11 million in the second quarter of 2018 and $1.42 million in the third quarter of 2017. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.69 percent at September 30, 2018, compared with 0.73 percent at June 30, 2018, and 0.63 percent at September 30, 2017. Classified loans totaled $117.52 million at September 30, 2018, compared to $113.73 million at June 30, 2018, and $121.29 million at September 30, 2017.
Noninterest income increased 11.52 percent in the third quarter of 2018 to $27.06 million compared with $24.26 million in the same quarter a year ago. Trust fees increased $1.25 million to $7.29 million in the third quarter of 2018 compared with $6.04 million in the same quarter last year, primarily due to continued growth in Trust assets managed to $5.75 billion from $4.92 billion a year ago. ATM, interchange and credit card fees increased 18.82 percent to $7.53 million compared with $6.34 million in the same quarter last year due to continued growth in debit cards and the Kingwood acquisition. Service charges on deposits increased 11.94 percent to $5.69 million compared with $5.08 million in the same quarter a year ago, primarily due to continued growth in net new accounts, product and pricing changes made to better align the Company's account offerings and the Kingwood acquisition. Real estate mortgage fees increased to $4.83 million in the third quarter of 2018 from $3.89 million in the same quarter a year ago. Offsetting these increases was a decrease in gains on sales of securities to $58 thousand in the third quarter of 2018 compared to $1.08 million in the same quarter a year ago.
Noninterest expense for the third quarter of 2018 totaled $47.51 million compared to $43.96 million in the third quarter of 2017. The Company's efficiency ratio in the third quarter of 2018 was 48.12 percent compared with 48.71 percent in the same quarter last year. The increase in noninterest expense in the third quarter of 2018 was primarily a result of an increase in salary and employee benefit costs to $26.38 million compared to $24.14 million in the same quarter a year ago, primarily driven by the Kingwood acquisition, annual merit based pay increases and an increase in profit sharing expenses.
For the nine months ended September 30, 2018, net income increased to $112.20 million from $84.23 million for the same period a year ago. Basic earnings per share rose to $1.66 from $1.27 in the same period of 2017. Net interest income increased 15.18 percent to $202.49 million for the nine months ended September 30, 2018, from $175.79 million in the same period a year ago. The provision for loan losses totaled $3.87 million compared with $5.09 million in the same period a year ago. Noninterest income was $76.97 million for the first nine months 2018 compared with $68.72 million in the same period a year ago. Noninterest expense rose to $142.45 million compared with $129.89 million during the same period a year ago.
As of September 30, 2018, consolidated assets for the Company totaled $7.57 billion compared to $7.69 billion at June 30, 2018, and $7.01 billion at September 30, 2017. Loans grew to $3.89 billion at September 30, 2018, compared with loans of $3.86 billion at June 30, 2018 and $3.49 billion at September 30, 2017. Deposits totaled $6.15 billion at September 30, 2018, compared to $6.21 billion at June 30, 2018, and $5.70 billion at September 30, 2017. Shareholders' equity rose to $995.74 million as of September 30, 2018, compared with $985.63 million at June 30, 2018, and $906.56 million at September 30, 2017.
"We are pleased to report another quarter of strong earnings growth," said F. Scott Dueser, Chairman, President and CEO. "We continue to work diligently to grow loans and deposits and reduce expenses while looking for acquisition opportunities to utilize our strong capital position and increase returns to our shareholders. In light of the continued increases in interest rates by the Federal Reserve, we are focused on increasing loan and deposit rates to better align with our competitive environment," added Dueser.
About First Financial Bankshares
Headquartered in Abilene, Texas, First Financial is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 72 locations in Texas, following the close of this acquisition, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, 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 seven 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 Bankshares, 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; 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/Filings" on the Company's Web site 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 |
|||||||||||||||||
2018 |
2017 |
||||||||||||||||
ASSETS |
Sept. 30, |
June 30, |
Mar. 31, |
Dec 31, |
Sept. 30, |
||||||||||||
Cash and due from banks |
$ |
164,998 |
$ |
178,217 |
$ |
130,979 |
$ |
209,583 |
$ |
177,615 |
|||||||
Interest-bearing deposits in banks |
34,511 |
99,499 |
67,060 |
162,764 |
166,820 |
||||||||||||
Interest-bearing time deposits in banks |
1,458 |
1,458 |
1,458 |
1,458 |
1,458 |
||||||||||||
Fed funds sold |
- |
8,450 |
- |
- |
- |
||||||||||||
Investment securities |
3,144,367 |
3,197,567 |
3,276,193 |
3,087,473 |
2,885,483 |
||||||||||||
Loans |
3,885,536 |
3,855,769 |
3,747,081 |
3,500,699 |
3,491,346 |
||||||||||||
Allowance for loan losses |
(50,871) |
(49,951) |
(49,499) |
(48,156) |
(47,922) |
||||||||||||
Net loans |
3,834,665 |
3,805,818 |
3,697,582 |
3,452,543 |
3,443,424 |
||||||||||||
Premises and equipment |
130,815 |
130,366 |
126,446 |
124,026 |
125,668 |
||||||||||||
Goodwill |
171,565 |
171,565 |
171,565 |
139,971 |
139,971 |
||||||||||||
Other intangible assets |
3,342 |
3,620 |
4,004 |
1,172 |
1,384 |
||||||||||||
Other assets |
85,510 |
88,910 |
92,162 |
75,725 |
67,341 |
||||||||||||
Total assets |
$ |
7,571,231 |
$ |
7,685,470 |
$ |
7,567,449 |
$ |
7,254,715 |
$ |
7,009,164 |
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||
Noninterest-bearing deposits |
$ |
2,146,984 |
$ |
2,105,953 |
$ |
2,111,116 |
$ |
2,041,650 |
$ |
1,949,174 |
|||||||
Interest-bearing deposits |
3,998,298 |
4,104,654 |
4,079,647 |
3,921,311 |
3,748,286 |
||||||||||||
Total deposits |
6,145,282 |
6,210,607 |
6,190,763 |
5,962,961 |
5,697,460 |
||||||||||||
Borrowings |
380,760 |
456,935 |
372,155 |
331,000 |
351,435 |
||||||||||||
Other liabilities |
49,450 |
32,300 |
34,717 |
37,986 |
53,713 |
||||||||||||
Shareholders' equity |
995,739 |
985,628 |
969,814 |
922,768 |
906,556 |
||||||||||||
Total liabilities and shareholders' equity |
$ |
7,571,231 |
$ |
7,685,470 |
$ |
7,567,449 |
$ |
7,254,715 |
$ |
7,009,164 |
|||||||
Quarter Ended |
|||||||||||||||||
2018 |
2017 |
||||||||||||||||
INCOME STATEMENTS |
Sept 30, |
June 30, |
Mar. 31, |
Dec 31, |
Sept. 30, |
||||||||||||
Interest income |
$ |
74,049 |
$ |
72,078 |
$ |
69,082 |
$ |
63,456 |
$ |
62,554 |
|||||||
Interest expense |
4,623 |
4,467 |
3,633 |
2,562 |
2,866 |
||||||||||||
Net interest income |
69,426 |
67,611 |
65,449 |
60,894 |
59,688 |
||||||||||||
Provision for loan losses |
1,450 |
1,105 |
1,310 |
1,440 |
1,415 |
||||||||||||
Net interest income after provision for loan losses |
67,976 |
66,506 |
64,139 |
59,454 |
58,273 |
||||||||||||
Noninterest income |
27,055 |
25,488 |
24,423 |
22,302 |
24,260 |
||||||||||||
Noninterest expense |
47,506 |
47,144 |
47,798 |
44,096 |
43,964 |
||||||||||||
Net income before income taxes |
47,525 |
44,850 |
40,764 |
37,660 |
38,569 |
||||||||||||
Income tax expense |
7,475 |
7,217 |
6,245 |
9,167 |
9,195 |
||||||||||||
Tax benefit from tax rate change |
- |
- |
- |
(7,650) |
- |
||||||||||||
Net income |
$ |
40,050 |
$ |
37,633 |
$ |
34,519 |
$ |
36,143 |
$ |
29,374 |
|||||||
PER COMMON SHARE DATA |
|||||||||||||||||
Net income - basic |
$ |
0.59 |
$ |
0.56 |
$ |
0.51 |
$ |
0.55 |
$ |
0.44 |
|||||||
Net income - diluted |
0.59 |
0.55 |
0.51 |
0.54 |
0.44 |
||||||||||||
Cash dividends declared |
0.21 |
0.21 |
0.19 |
0.19 |
0.19 |
||||||||||||
Book Value |
14.71 |
14.57 |
14.34 |
13.93 |
13.69 |
||||||||||||
Market Value |
$ |
59.10 |
$ |
50.90 |
$ |
46.30 |
$ |
45.05 |
$ |
45.20 |
|||||||
Shares outstanding - end of period |
67,693,586 |
67,669,658 |
67,612,760 |
66,260,444 |
66,223,957 |
||||||||||||
Average outstanding shares - basic |
67,635,058 |
67,597,275 |
67,527,010 |
66,191,995 |
66,140,518 |
||||||||||||
Average outstanding shares - diluted |
68,053,724 |
67,924,168 |
67,799,545 |
66,428,871 |
66,417,281 |
||||||||||||
PERFORMANCE RATIOS |
|||||||||||||||||
Return on average assets |
2.10 |
% |
1.98 |
% |
1.84 |
% |
2.02 |
% |
1.65 |
% |
|||||||
Return on average equity |
16.00 |
15.53 |
14.74 |
15.79 |
12.95 |
||||||||||||
Return on average tangible equity |
19.42 |
18.94 |
17.82 |
18.70 |
15.38 |
||||||||||||
Net interest margin (tax equivalent) |
4.01 |
3.92 |
3.88 |
4.00 |
3.94 |
||||||||||||
Efficiency ratio |
48.12 |
49.42 |
51.76 |
49.37 |
48.71 |
||||||||||||
Nine Months Ended |
|||||||||||||||||
Sept. 30, |
|||||||||||||||||
INCOME STATEMENTS |
2018 |
2017 |
|||||||||||||||
Interest income |
$ |
215,209 |
$ |
182,519 |
|||||||||||||
Interest expense |
12,723 |
6,726 |
|||||||||||||||
Net interest income |
202,486 |
175,793 |
|||||||||||||||
Provision for loan losses |
3,865 |
5,090 |
|||||||||||||||
Net interest income after provision for loan losses |
198,621 |
170,703 |
|||||||||||||||
Noninterest income |
76,966 |
68,715 |
|||||||||||||||
Noninterest expense |
142,448 |
129,891 |
|||||||||||||||
Net income before income taxes |
133,139 |
109,527 |
|||||||||||||||
Income tax expense |
20,937 |
25,300 |
|||||||||||||||
Net income |
$ |
112,202 |
$ |
84,227 |
|||||||||||||
PER COMMON SHARE DATA |
|||||||||||||||||
Net income - basic |
$ |
1.66 |
$ |
1.27 |
|||||||||||||
Net income - diluted |
1.65 |
1.27 |
|||||||||||||||
Cash dividends declared |
0.61 |
0.56 |
|||||||||||||||
Book Value |
14.71 |
13.69 |
|||||||||||||||
Market Value |
$ |
59.10 |
$ |
45.20 |
|||||||||||||
Shares outstanding - end of period |
67,693,586 |
66,223,957 |
|||||||||||||||
Average outstanding shares - basic |
67,586,843 |
66,104,914 |
|||||||||||||||
Average outstanding shares - diluted |
67,948,420 |
66,392,210 |
|||||||||||||||
PERFORMANCE RATIOS |
|||||||||||||||||
Return on average assets |
1.97 |
% |
1.62 |
% |
|||||||||||||
Return on average equity |
15.43 |
12.88 |
|||||||||||||||
Return on average tangible equity |
18.74 |
15.40 |
|||||||||||||||
Net interest margin (tax equivalent) |
3.94 |
4.01 |
|||||||||||||||
Efficiency ratio |
49.73 |
49.22 |
|||||||||||||||
FIRST FINANCIAL BANKSHARES, INC. |
|||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||||||||||||||
(In thousands) |
|||||||||||||||||
Quarter Ended |
|||||||||||||||||
2018 |
2017 |
||||||||||||||||
ALLOWANCE FOR LOAN LOSSES |
Sept. 30, |
June 30, |
Mar. 31, |
Dec 31, |
Sept. 30, |
||||||||||||
Balance at beginning of period |
$ |
49,951 |
$ |
49,499 |
$ |
48,156 |
$ |
47,922 |
$ |
47,410 |
|||||||
Loans charged off |
(945) |
(949) |
(471) |
(1,440) |
(1,180) |
||||||||||||
Loan recoveries |
415 |
296 |
504 |
234 |
277 |
||||||||||||
Net recoveries (charge-offs) |
(530) |
(653) |
33 |
(1,206) |
(903) |
||||||||||||
Provision for loan losses |
1,450 |
1,105 |
1,310 |
1,440 |
1,415 |
||||||||||||
Balance at end of period |
$ |
50,871 |
$ |
49,951 |
$ |
49,499 |
$ |
48,156 |
$ |
47,922 |
|||||||
Allowance for loan losses / |
|||||||||||||||||
period-end loans |
1.31 |
% |
1.30 |
% |
1.32 |
% |
1.38 |
% |
1.37 |
% |
|||||||
Allowance for loan losses / |
|||||||||||||||||
nonperforming loans |
194.25 |
182.31 |
209.80 |
259.11 |
243.57 |
||||||||||||
Net charge-offs / average loans |
|||||||||||||||||
(annualized) |
0.05 |
0.07 |
- |
0.14 |
0.10 |
||||||||||||
SUMMARY OF LOAN CLASSIFICATION |
|||||||||||||||||
Special Mention |
$ |
36,450 |
$ |
34,557 |
$ |
40,079 |
$ |
37,079 |
$ |
35,237 |
|||||||
Substandard |
81,073 |
79,170 |
83,976 |
80,131 |
86,057 |
||||||||||||
Doubtful |
- |
- |
- |
- |
- |
||||||||||||
Total classified loans |
$ |
117,523 |
$ |
113,727 |
$ |
124,055 |
$ |
117,210 |
$ |
121,294 |
|||||||
NONPERFORMING ASSETS |
|||||||||||||||||
Nonaccrual loans |
$ |
25,587 |
$ |
26,685 |
$ |
22,752 |
$ |
17,670 |
$ |
18,750 |
|||||||
Accruing troubled debt restructured loans |
513 |
514 |
514 |
627 |
668 |
||||||||||||
Accruing loans 90 days past due |
88 |
200 |
327 |
288 |
257 |
||||||||||||
Total nonperforming loans |
26,188 |
27,399 |
23,593 |
18,585 |
19,675 |
||||||||||||
Foreclosed assets |
671 |
705 |
1,276 |
1,532 |
2,401 |
||||||||||||
Total nonperforming assets |
$ |
26,859 |
$ |
28,104 |
$ |
24,869 |
$ |
20,117 |
$ |
22,076 |
|||||||
As a % of loans and foreclosed assets |
0.69 |
% |
0.73 |
% |
0.66 |
% |
0.57 |
% |
0.63 |
% |
|||||||
As a % of end of period total assets |
0.35 |
0.37 |
0.33 |
0.28 |
0.31 |
||||||||||||
OIL AND GAS PORTFOLIO INFORMATION |
|||||||||||||||||
Oil and gas loans |
$ |
112,039 |
$ |
103,381 |
$ |
86,218 |
$ |
60,164 |
$ |
69,433 |
|||||||
Oil and gas loans as a % of total loans |
2.88 |
% |
2.68 |
% |
2.30 |
% |
1.72 |
% |
1.99 |
% |
|||||||
Classified oil and gas loans |
4,861 |
5,001 |
10,485 |
20,346 |
21,817 |
||||||||||||
Nonaccrual oil and gas loans |
1,825 |
1,629 |
1,460 |
1,414 |
1,569 |
||||||||||||
Net charge-offs for oil and gas loans |
- |
- |
- |
- |
- |
||||||||||||
Allowance for oil and gas loans as a % of oil and gas loans |
3.28 |
% |
3.48 |
% |
3.64 |
% |
7.90 |
% |
6.03 |
% |
|||||||
CAPITAL RATIOS |
|||||||||||||||||
Common equity Tier 1 capital ratio |
19.19 |
% |
18.68 |
% |
18.43 |
% |
18.66 |
% |
18.35 |
% |
|||||||
Tier 1 capital ratio |
19.19 |
18.68 |
18.43 |
18.66 |
18.35 |
||||||||||||
Total capital ratio |
20.34 |
19.81 |
19.58 |
19.85 |
19.54 |
||||||||||||
Tier 1 leverage |
11.57 |
11.14 |
10.90 |
11.09 |
10.84 |
||||||||||||
Equity to assets |
13.15 |
12.82 |
12.82 |
12.72 |
12.93 |
||||||||||||
Quarter Ended |
|||||||||||||||||
2018 |
2017 |
||||||||||||||||
NONINTEREST INCOME |
Sept. 30, |
June 30, |
Mar. 31, |
Dec 31, |
Sept. 30, |
||||||||||||
Trust fees |
$ |
7,291 |
$ |
7,070 |
$ |
6,904 |
$ |
5,891 |
$ |
6,040 |
|||||||
Service charges on deposits |
5,690 |
5,375 |
4,884 |
4,900 |
5,083 |
||||||||||||
ATM, interchange and credit card fees |
7,533 |
7,041 |
6,996 |
6,584 |
6,340 |
||||||||||||
Real estate mortgage fees |
4,834 |
3,951 |
2,933 |
3,613 |
3,891 |
||||||||||||
Net gain on sale of available-for-sale securities |
58 |
67 |
1,221 |
3 |
1,075 |
||||||||||||
Net gain (loss) on sale of foreclosed assets |
84 |
19 |
99 |
(8) |
(11) |
||||||||||||
Net gain (loss) on sale of assets |
(61) |
- |
(91) |
(185) |
(15) |
||||||||||||
Interest on loan recoveries |
199 |
289 |
119 |
232 |
405 |
||||||||||||
Other noninterest income |
1,427 |
1,676 |
1,358 |
1,272 |
1,452 |
||||||||||||
Total noninterest income |
$ |
27,055 |
$ |
25,488 |
$ |
24,423 |
$ |
22,302 |
$ |
24,260 |
|||||||
NONINTEREST EXPENSE |
|||||||||||||||||
Salaries and employee benefits, excluding profit sharing |
$ |
24,693 |
$ |
24,545 |
$ |
24,994 |
$ |
22,760 |
$ |
23,052 |
|||||||
Profit sharing expense |
1,684 |
2,317 |
1,209 |
1,661 |
1,091 |
||||||||||||
Net occupancy expense |
2,900 |
2,806 |
2,883 |
2,439 |
2,711 |
||||||||||||
Equipment expense |
3,482 |
3,440 |
3,516 |
3,369 |
3,294 |
||||||||||||
FDIC insurance premiums |
570 |
632 |
566 |
560 |
561 |
||||||||||||
ATM, interchange and credit card expenses |
2,344 |
2,205 |
2,143 |
1,935 |
2,001 |
||||||||||||
Legal, tax and professional fees |
2,417 |
2,308 |
2,807 |
2,580 |
2,396 |
||||||||||||
Audit fees |
382 |
439 |
411 |
338 |
356 |
||||||||||||
Printing, stationery and supplies |
387 |
612 |
486 |
567 |
449 |
||||||||||||
Amortization of intangible assets |
279 |
384 |
387 |
136 |
143 |
||||||||||||
Advertising and public relations |
1,709 |
1,576 |
1,575 |
1,689 |
1,527 |
||||||||||||
Operational and other losses |
981 |
305 |
566 |
553 |
1,081 |
||||||||||||
Software amortization and expense |
540 |
479 |
524 |
1,056 |
742 |
||||||||||||
Other noninterest expense |
5,138 |
5,096 |
5,731 |
4,453 |
4,560 |
||||||||||||
Total noninterest expense |
$ |
47,506 |
$ |
47,144 |
$ |
47,798 |
$ |
44,096 |
$ |
43,964 |
|||||||
TAX EQUIVALENT YIELD ADJUSTMENT |
$ |
2,242 |
$ |
2,289 |
$ |
2,467 |
$ |
6,125 |
$ |
6,312 |
|||||||
Nine Months Ended |
|||||||||||||||||
Sept. 30, |
|||||||||||||||||
NONINTEREST INCOME |
2018 |
2017 |
|||||||||||||||
Trust fees |
$ |
21,265 |
$ |
17,804 |
|||||||||||||
Service charges on deposits |
15,950 |
14,517 |
|||||||||||||||
ATM, interchange and credit card fees |
21,570 |
19,102 |
|||||||||||||||
Real estate mortgage fees |
11,718 |
11,496 |
|||||||||||||||
Net gain (loss) on sale of available-for-sale securities |
1,346 |
1,825 |
|||||||||||||||
Net gain (loss) on sale of foreclosed assets |
201 |
(42) |
|||||||||||||||
Net gain (loss) on sale of assets |
(152) |
(211) |
|||||||||||||||
Interest on loan recoveries |
607 |
896 |
|||||||||||||||
Other noninterest income |
4,461 |
3,328 |
|||||||||||||||
Total noninterest income |
$ |
76,966 |
$ |
68,715 |
|||||||||||||
NONINTEREST EXPENSE |
|||||||||||||||||
Salaries and employee benefits, excluding profit sharing |
$ |
74,232 |
$ |
67,793 |
|||||||||||||
Profit sharing expense |
5,210 |
3,074 |
|||||||||||||||
Net occupancy expense |
8,589 |
8,081 |
|||||||||||||||
Equipment expense |
10,438 |
10,397 |
|||||||||||||||
FDIC insurance premiums |
1,768 |
1,657 |
|||||||||||||||
ATM, interchange and credit card expenses |
6,692 |
5,517 |
|||||||||||||||
Legal, tax and professional fees |
7,532 |
7,399 |
|||||||||||||||
Audit fees |
1,234 |
1,154 |
|||||||||||||||
Printing, stationery and supplies |
1,485 |
1,423 |
|||||||||||||||
Amortization of intangible assets |
1,049 |
477 |
|||||||||||||||
Advertising and public relations |
4,860 |
4,646 |
|||||||||||||||
Operational and other losses |
1,852 |
2,639 |
|||||||||||||||
Software amortization and expense |
1,542 |
2,237 |
|||||||||||||||
Other noninterest expense |
15,965 |
13,397 |
|||||||||||||||
Total noninterest expense |
$ |
142,448 |
$ |
129,891 |
|||||||||||||
TAX EQUIVALENT YIELD ADJUSTMENT |
$ |
6,997 |
$ |
19,371 |
FIRST FINANCIAL BANKSHARES, INC. |
|||||||||||||||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||||||||||||||||||||||||||
(In thousands) |
|||||||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||||||
Sept. 30, 2018 |
June 30, 2018 |
||||||||||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
Average |
Tax Equivalent |
Yield / |
||||||||||||||||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||||||||||
Fed funds sold |
$ |
3,377 |
$ |
19 |
2.29 |
% |
$ |
2,228 |
$ |
13 |
2.32 |
% |
|||||||||||||||||
Interest-bearing deposits in nonaffiliated banks |
88,118 |
450 |
2.03 |
59,373 |
258 |
1.74 |
|||||||||||||||||||||||
Taxable securities |
1,943,125 |
12,594 |
2.59 |
2,007,949 |
12,719 |
2.53 |
|||||||||||||||||||||||
Tax exempt securities |
1,213,212 |
11,459 |
3.78 |
1,281,757 |
12,001 |
3.75 |
|||||||||||||||||||||||
Loans |
3,845,836 |
51,769 |
5.34 |
3,797,341 |
49,376 |
5.22 |
|||||||||||||||||||||||
Total interest-earning assets |
7,093,668 |
$ |
76,291 |
4.27 |
% |
7,148,648 |
$ |
74,367 |
4.17 |
% |
|||||||||||||||||||
Noninterest-earning assets |
490,155 |
486,837 |
|||||||||||||||||||||||||||
Total assets |
$ |
7,583,823 |
$ |
7,635,485 |
|||||||||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||
Deposits |
$ |
4,035,174 |
$ |
4,329 |
0.43 |
% |
$ |
4,076,522 |
$ |
4,005 |
0.39 |
% |
|||||||||||||||||
Fed funds purchased and other borrowings |
399,026 |
294 |
0.29 |
434,239 |
462 |
0.43 |
|||||||||||||||||||||||
Total interest-bearing liabilities |
4,434,200 |
$ |
4,623 |
0.41 |
% |
4,510,761 |
$ |
4,467 |
0.40 |
% |
|||||||||||||||||||
Noninterest-bearing liabilities |
2,156,258 |
2,152,451 |
|||||||||||||||||||||||||||
Shareholders' equity |
993,365 |
972,273 |
|||||||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
7,583,823 |
$ |
7,635,485 |
|||||||||||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
71,668 |
4.01 |
% |
$ |
69,900 |
3.92 |
% |
|||||||||||||||||||||
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||||||
Mar. 31, 2018 |
Dec. 31, 2017 |
||||||||||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
Average |
Tax Equivalent |
Yield / |
||||||||||||||||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||||||||||
Fed funds sold |
$ |
6,215 |
$ |
27 |
1.78 |
% |
$ |
1,192 |
$ |
5 |
1.52 |
% |
|||||||||||||||||
Interest-bearing deposits in nonaffiliated banks |
160,399 |
613 |
1.55 |
186,355 |
645 |
1.37 |
|||||||||||||||||||||||
Taxable securities |
1,826,391 |
11,354 |
2.49 |
1,562,744 |
8,977 |
2.30 |
|||||||||||||||||||||||
Tax exempt securities |
1,352,235 |
12,559 |
3.72 |
1,405,327 |
16,259 |
4.63 |
|||||||||||||||||||||||
Loans |
3,748,561 |
46,995 |
5.08 |
3,483,939 |
43,695 |
4.98 |
|||||||||||||||||||||||
Total interest-earning assets |
7,093,801 |
$ |
71,548 |
4.09 |
% |
6,639,557 |
$ |
69,581 |
4.16 |
% |
|||||||||||||||||||
Noninterest-earning assets |
497,049 |
441,645 |
|||||||||||||||||||||||||||
Total assets |
$ |
7,590,850 |
$ |
7,081,202 |
|||||||||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||
Deposits |
$ |
4,139,324 |
$ |
3,519 |
0.34 |
% |
$ |
3,795,808 |
$ |
2,465 |
0.26 |
% |
|||||||||||||||||
Fed funds purchased and other borrowings |
357,414 |
113 |
0.13 |
343,683 |
97 |
0.11 |
|||||||||||||||||||||||
Total interest-bearing liabilities |
4,496,738 |
$ |
3,632 |
0.33 |
% |
4,139,491 |
$ |
2,562 |
0.25 |
% |
|||||||||||||||||||
Noninterest-bearing liabilities |
2,144,065 |
2,033,580 |
|||||||||||||||||||||||||||
Shareholders' equity |
950,047 |
908,131 |
|||||||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
7,590,850 |
$ |
7,081,202 |
|||||||||||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
67,916 |
3.88 |
% |
$ |
67,019 |
4.00 |
% |
|||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||
Sept. 30, 2017 |
|||||||||||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
|||||||||||||||||||||||||||
Balance |
Interest |
Rate |
|||||||||||||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||||||||||
Fed funds sold |
$ |
2,467 |
$ |
9 |
1.43 |
% |
|||||||||||||||||||||||
Interest-bearing deposits in nonaffiliated banks |
198,322 |
629 |
1.26 |
||||||||||||||||||||||||||
Taxable securities |
1,492,246 |
8,074 |
2.16 |
||||||||||||||||||||||||||
Tax exempt securities |
1,477,559 |
16,884 |
4.57 |
||||||||||||||||||||||||||
Loans |
3,468,524 |
43,270 |
4.95 |
||||||||||||||||||||||||||
Total interest-earning assets |
6,639,118 |
$ |
68,866 |
4.12 |
% |
||||||||||||||||||||||||
Noninterest-earning assets |
431,070 |
||||||||||||||||||||||||||||
Total assets |
$ |
7,070,188 |
|||||||||||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||
Deposits |
$ |
3,728,442 |
$ |
2,228 |
0.24 |
% |
|||||||||||||||||||||||
Fed funds purchased and other borrowings |
524,357 |
638 |
0.48 |
||||||||||||||||||||||||||
Total interest-bearing liabilities |
4,252,799 |
$ |
2,866 |
0.27 |
% |
||||||||||||||||||||||||
Noninterest-bearing liabilities |
1,917,681 |
||||||||||||||||||||||||||||
Shareholders' equity |
899,708 |
||||||||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
7,070,188 |
|||||||||||||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
66,000 |
3.94 |
% |
|||||||||||||||||||||||||
Nine Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
Sept. 30, 2018 |
Sept. 30, 2017 |
||||||||||||||||||||||||||||
Average |
Tax Equivalent |
Yield / |
Average |
Tax Equivalent |
Yield / |
||||||||||||||||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||||||||||||||||||
Interest-earning assets: |
|||||||||||||||||||||||||||||
Fed funds sold |
$ |
3,929 |
$ |
60 |
2.03 |
% |
$ |
3,738 |
$ |
20 |
0.70 |
% |
|||||||||||||||||
Interest-bearing deposits in nonaffiliated banks |
102,365 |
1,321 |
1.73 |
126,207 |
1,016 |
1.08 |
|||||||||||||||||||||||
Taxable securities |
1,926,249 |
36,666 |
2.54 |
1,451,712 |
23,848 |
2.19 |
|||||||||||||||||||||||
Tax exempt securities |
1,281,892 |
36,019 |
3.75 |
1,511,786 |
51,859 |
4.57 |
|||||||||||||||||||||||
Loans |
3,797,602 |
148,140 |
5.22 |
3,419,105 |
125,147 |
4.89 |
|||||||||||||||||||||||
Total interest-earning assets |
7,112,037 |
$ |
222,206 |
4.18 |
% |
6,512,548 |
$ |
201,890 |
4.14 |
% |
|||||||||||||||||||
Noninterest-earning assets |
489,625 |
435,367 |
|||||||||||||||||||||||||||
Total assets |
$ |
7,601,662 |
$ |
6,947,915 |
|||||||||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||
Deposits |
$ |
4,083,292 |
$ |
11,854 |
0.39 |
% |
$ |
3,779,967 |
$ |
5,748 |
0.20 |
% |
|||||||||||||||||
Fed funds purchased and other short term borrowings |
397,045 |
869 |
0.29 |
448,773 |
978 |
0.29 |
|||||||||||||||||||||||
Total interest-bearing liabilities |
4,480,337 |
$ |
12,723 |
0.38 |
% |
4,228,740 |
$ |
6,726 |
0.21 |
% |
|||||||||||||||||||
Noninterest-bearing liabilities |
2,149,271 |
1,844,894 |
|||||||||||||||||||||||||||
Shareholders' equity |
972,054 |
874,281 |
|||||||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
7,601,662 |
$ |
6,947,915 |
|||||||||||||||||||||||||
Net interest income and margin (tax equivalent) |
$ |
209,483 |
3.94 |
% |
$ |
195,164 |
4.01 |
% |
|||||||||||||||||||||
SOURCE First Financial Bankshares, Inc.
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