PR Newswire | Jul 22, 2021 04:06PM EDT

07/22 15:05 CDT

First Financial Bankshares Announces Second Quarter 2021 Earnings ABILENE, Texas, July 22, 2021

ABILENE, Texas, July 22, 2021 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2021 of $56.38 million compared to earnings of $53.47 million for the same quarter a year ago. Basic and diluted earnings per share were $0.40 and $0.39, respectively, for the second quarter of 2021 compared with $0.38 and $0.38 respectively, for the same quarter a year ago.

"During the second quarter, we produced strong operating results as we moved beyond the pandemic. As the economy in Texas continues to quickly recover from the pandemic, we were able to capitalize on the growth that we experienced over the past year. Our strong momentum produced net organic loan growth, excluding PPP loans, of $193.46 million for the quarter and $296.84 million year-to-date while customer deposits have grown $1.11 billion year-to-date. We will continue to build relationships, serve our communities across Texas, and remain focused on growth over the last half of 2021. 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 second quarter of 2021 was $90.95 million compared to $89.24 million for the second quarter of 2020. Average-earning assets increased to $11.30 billion for the second quarter of 2021 compared to $9.80 billion a year ago. The net interest margin, on a taxable equivalent basis, was 3.36 percent for the second quarter of 2021 compared to 3.78 percent in the second quarter of 2020. Our continued deposit growth produced higher levels of short-term liquidity and investment securities balances.

Information related to the Company's Paycheck Protection Program ("PPP") loans are included in the following table (dollars in thousands):

PPP Loans Originated PPP Amounts as of June 30, 2021

Number Recognized Number of Amount Period-End Unamortized Fees During the Loans of Loans Amount, Net Fees Quarter Ended June 30, 2021

PPP Round 1 6,530 $ 703,450 724 $ 72,595 $ 1,107 $ 3,912

PPP Round 2 3,179 267,423 2,997 247,797 12,615 1,326

PPP Total 9,709 $ 970,873 3,721 $ 320,392 $ 13,722 $ 5,238

PPP loan balances accounted for $482.00 million in average balances for the second quarter of 2021 compared to $499.35 in the first 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 a negative provision for credit losses of $1.21 million for the second quarter of 2021 compared to a provision for credit losses of $8.70 million for the second quarter of 2020. The Company's provision for credit losses for the second quarter of 2021 reflected the continued improvement in the economic outlook for our markets across Texas and overall improvements in asset quality.

For the second quarter of 2021, net recoveries totaled $203 thousand compared to net charge-offs of $193 thousand for the second quarter of 2020. At June 30, 2021, the allowance for credit losses totaled $62.14 million, or 1.17 percent of loans held-for-investment ("loans" hereafter), or 1.25 percent of loans, excluding PPP loans, compared to $68.95 million at June 30, 2020, or 1.31 percent of loans, or 1.52 percent of loans, excluding PPP loans. Additionally, the reserve for unfunded commitments totaled $6.75 million at June 30, 2021 compared to $809 thousand at June 30, 2020. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.57 percent at June 30, 2021, compared with 0.76 percent at June 30, 2020. Classified loans totaled $174.99 million at June 30, 2021, compared to $200.90 million at June 30, 2020.

Noninterest income in the second quarter of 2021 was $34.67 million compared to $36.92 million in the second quarter of 2020, as a result of the following:

* Trust fees increased to $8.69 million in the second quarter of 2021 from $6.96 million in the second quarter of 2020. The fair value of trust assets managed increased to $8.06 billion at June 30, 2021 compared to $6.78 billion at June 30, 2020. * Service charges on deposits were $4.93 million in the second quarter of 2021 compared with $4.32 million in the second quarter of 2020. * ATM, interchange and credit card fees increased to $9.85 million in the second quarter of 2021 from $8.05 million in the second quarter of 2020, driven by continued growth in the number of debit cards issued and overall customer utilization. * Mortgage income was $8.29 million in the second quarter of 2021 compared to $13.68 million in the second quarter of 2020 due to lower overall pipeline volumes. * Gains on sales of securities and other assets totalled $80 thousand in the second quarter of 2021 compared to $1.54 million in the second quarter of 2020.

Noninterest expense for the second quarter of 2021 totaled $59.37 million compared to $53.32 million in the second quarter of 2020, as a result of the following:

* Salary, commissions and employee benefit costs totaled $35.05 million for the second quarter of 2021, compared to $30.81 million in the second quarter of 2020. The increase over the prior year was primarily driven by the deferral of $3.62 million of PPP loan orgination costs during the quarter ended June 30, 2020 combined with increases effective March 1, 2021 from annual merit-based pay and incentive compensation during the quarter ended June 30, 2021.

The Company's efficiency ratio was 45.94 percent for the second quarter of 2021 compared to 41.32 percent for the second quarter of 2020.

As of June 30, 2021, consolidated assets for the Company totaled $12.33 billion compared to $10.34 billion at June 30, 2020. Loans totaled $5.30 billion at June 30, 2021, compared with loans of $5.25 billion at June 30, 2020. Excluding PPP loans, loans have grown $434.26 million or 9.5 percent, from June 30, 2020 balances. Deposits totaled $9.78 billion at June 30, 2021, compared to $8.16 billion at June 30, 2020, driven by organic growth. Shareholders' equity rose to $1.72 billion as of June 30, 2021, compared to $1.58 billion at June 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 June 30, Mar. 31, Dec. 31, Sept. 30, June 30,

Cash and due from banks $ 190,061 $ 190,350 $ 211,113 $ 175,088 $ 188,373

Interest-bearing deposits in banks 654,531 893,221 517,971 58,933 196,426

Investment securities 5,578,048 5,109,631 4,393,029 4,431,280 4,118,863

Loans, held-for-investment, excluding PPP Loans 4,984,210 4,790,752 4,687,370 4,589,948 4,549,950

PPP Loans 320,392 531,810 483,663 703,731 703,117

Allowance for loan losses (62,138) (62,974) (66,534) (76,038) (68,947)

Net loans, held-for-investment 5,242,464 5,259,588 5,104,499 5,217,641 5,184,120

Loans, held-for-sale 61,802 65,405 83,969 101,055 66,370

Premises and equipment, net 147,655 142,415 142,269 141,002 138,933

Goodwill 313,481 313,481 313,481 313,481 313,481

Other intangible assets 4,087 4,499 4,911 5,394 5,884

Other assets 136,954 124,297 133,258 123,778 127,367

Total assets $ 12,329,083 $ 12,102,887 $ 10,904,500 $ 10,567,652 $ 10,339,817

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits $ 3,427,038 $ 3,350,145 $ 2,982,697 $ 2,950,407 $ 2,941,679

Interest-bearing deposits 6,354,656 6,063,302 5,693,120 5,344,481 5,215,963

Total deposits 9,781,694 9,413,447 8,675,817 8,294,888 8,157,642

Borrowings 549,969 548,604 430,093 503,163 449,224

Trade Date Payable 189,838 381,871 14,641 53,730 33,553

Other liabilities 87,213 93,537 105,759 96,370 116,949

Shareholders' equity 1,720,369 1,665,428 1,678,190 1,619,501 1,582,449

Total liabilities and shareholders' equity $ 12,329,083 $ 12,102,887 $ 10,904,500 $ 10,567,652 $ 10,339,817

Quarter Ended

2021 2020

INCOME STATEMENTS June 30, Mar. 31, Dec. 31, Sept. 30, June 30,

Interest income $ 92,602 $ 90,610 $ 92,457 $ 91,373 $ 92,197

Interest expense 1,653 1,786 1,920 2,163 2,962

Net interest income 90,949 88,824 90,537 89,210 89,235

Provision for credit losses (1,206) (1,997) (8,033) 9,000 8,700

Net interest income after provisions for credit losses 92,155 90,821 98,570 80,210 80,535

Noninterest income 34,673 34,874 35,709 38,575 36,919

Noninterest expense 59,374 57,723 63,705 55,593 53,321

Net income before income taxes 67,454 67,972 70,574 63,192 64,133

Income tax expense 11,075 11,054 12,099 10,335 10,663

Net income $ 56,379 $ 56,918 $ 58,475 $ 52,857 $ 53,470

PER COMMON SHARE DATA

Net income - basic $ 0.40 $ 0.40 $ 0.41 $ 0.37 $ 0.38

Net income - diluted 0.39 0.40 0.41 0.37 0.38

Cash dividends declared 0.15 0.13 0.13 0.13 0.13

Book value 12.08 11.70 11.80 11.40 11.14

Tangible book value 9.85 9.47 9.57 9.15 8.89

Market value $ 49.13 $ 46.73 $ 36.17 $ 27.91 $ 28.89

Shares outstanding - end of period 142,359,774 142,285,611 142,161,834 142,121,595 142,035,396

Average outstanding shares - basic 142,245,555 142,146,275 142,057,705 141,980,707 141,973,522

Average outstanding shares - diluted 143,164,611 143,002,658 142,644,088 142,529,242 142,454,083

PERFORMANCE RATIOS

Return on average assets 1.89 % 2.05 % 2.19 % 2.01 % 2.06 %

Return on average equity 13.38 13.83 14.27 13.14 14.00

Return on average tangible equity 16.48 17.09 17.74 16.41 17.67

Net interest margin (tax equivalent) 3.36 3.55 3.75 3.75 3.78

Efficiency ratio 45.94 45.36 49.15 42.45 41.32

Six Months Ended

June 30,

INCOME STATEMENTS 2021 2020

Interest income $ 183,212 $ 180,297

Interest expense 3,439 10,159

Net interest income 179,773 170,138

Provision for loan losses (3,203) 18,550

Net interest income after provision for loan losses 182,976 151,588

Noninterest income 69,548 65,651

Noninterest expense 117,098 108,640

Net income before income taxes 135,426 108,599

Income tax expense 22,129 17,898

Net income $ 113,297 $ 90,701

PER COMMON SHARE DATA

Net income - basic $ 0.80 $ 0.64

Net income - diluted 0.79 0.64

Cash dividends declared 0.28 0.25

Book Value 12.08 11.14

Tangible book value 9.85 8.89

Market Value $ 49.13 $ 28.89

Shares outstanding - end of period 142,359,774 142,035,396

Average outstanding shares - basic 142,196,190 142,045,779

Average outstanding shares - diluted 143,102,608 142,519,308

PERFORMANCE RATIOS

Return on average assets 1.97 % 1.86 %

Return on average equity 13.61 12.09

Return on average tangible equity 16.78 15.33

Net interest margin (tax equivalent) 3.45 3.84

Efficiency ratio 45.65 45.17

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Quarter Ended

2021 2020

ALLOWANCE FOR LOAN LOSSES June 30, Mar. 31, Dec. 31, Sept. 30, June 30,

Balance at beginning of period $ 62,974 $ 66,534 $ 76,038 $ 68,947 $ 60,440

Loans charged off (392) (574) (1,339) (853) (894)

Loan recoveries 595 443 778 444 701

Net recoveries (charge-offs) 203 (131) (561) (409) (193)

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 8,700

Balance at end of period $ 62,138 $ 62,974 $ 66,534 $ 76,038 $ 68,947

ALLOWANCE FOR UNFUNDED COMMITMENTS

Balance at beginning of period $ 6,918 $ 5,486 $ 2,309 $ 809 $ 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 $ 6,918 $ 5,486 $ 2,309 $ 809

Allowance for loan losses /

period-end loans held-for-investment 1.17 % 1.18 % 1.29 % 1.44 % 1.31 %

Allowance for loan losses /

nonperforming loans 208.45 160.00 155.61 177.99 174.83

Net charge-offs (recoveries) / average total loans

(annualized) (0.02) 0.01 0.04 0.03 0.01

SUMMARY OF LOAN CLASSIFICATION

Special Mention $ 54,497 $ 61,866 $ 56,585 $ 66,033 $ 63,489

Substandard 120,497 128,550 140,866 136,010 137,408

Doubtful - - - - -

Total classified loans $ 174,994 $ 190,416 $ 197,451 $ 202,043 $ 200,897

NONPERFORMING ASSETS

Nonaccrual loans $ 29,786 $ 39,333 $ 42,619 $ 42,673 $ 39,320

Accruing troubled debt restructured loans 23 23 24 25 25

Accruing loans 90 days past due - 2 113 23 92

Total nonperforming loans 29,809 39,358 42,756 42,721 39,437

Foreclosed assets 305 300 142 331 287

Total nonperforming assets $ 30,114 $ 39,658 $ 42,898 $ 43,052 $ 39,724

As a % of loans held-for-investment and foreclosed assets 0.57 % 0.75 % 0.83 % 0.81 % 0.76 %

As a % of end of period total assets 0.24 0.33 0.39 0.41 0.38

OIL AND GAS PORTFOLIO INFORMATION *

Oil and gas loans $ 103,166 $ 105,261 $ 106,237 $ 118,567 $ 128,143

Oil and gas loans as a % of total loans held-for-investment 2.07 % 2.20 % 2.27 % 2.58 % 2.82 %

Classified oil and gas loans 13,090 10,079 13,298 26,823 28,366

Nonaccrual oil and gas loans 3,986 4,759 4,774 6,800 3,702

Net charge-offs for oil and gas loans 59 40 24 - 195

* Excluding PPP loans

RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *

Retail loans $ 326,409 $ 282,310 $ 216,244 $ 229,386 $ 216,244

Restaurant loans 56,997 51,772 48,618 39,523 46,418

Hotel loans 71,008 71,435 71,716 63,273 51,957

Other hospitality loans 27,929 24,014 21,970 26,041 23,230

Travel loans 790 664 780 801 908

Total Retail/Restaurant/Hospitality loans $ 483,133 $ 430,195 $ 359,328 $ 359,024 $ 338,757

Retail/Restaurant/Hospitality loans as a % of total loans held-for-investment 9.69 % 8.98 % 7.67 % 7.82 % 7.45 %

Classified Retail/Restaurant/Hospitality loans $ 43,635 $ 45,214 $ 31,192 $ 28,171 $ 15,837

Nonaccrual Retail/Restaurant/Hospitality loans 5,600 6,575 5,975 5,689 5,752

Net Charge-offs for Retail/Restaurant/Hospitality loans - - 561 26 178

* Excluding PPP loans

CAPITAL RATIOS

Common equity Tier 1 capital ratio 20.04 % 20.32 % 20.79 % 20.56 % 20.78 %

Tier 1 capital ratio 20.04 20.32 20.79 20.56 20.78

Total capital ratio 21.12 21.47 22.03 21.82 22.03

Tier 1 leverage ratio 11.10 11.55 11.86 11.65 11.25

Tangible common equity ratio 11.75 12.35 12.71 12.61 12.00

Equity/Assets ratio 13.95 13.76 15.39 15.33 15.30

Quarter Ended

2021 2020

NONINTEREST INCOME June 30, Mar. 31, Dec. 31, Sept. 30, June 30,

Trust fees $ 8,692 $ 8,299 $ 7,672 $ 7,461 $ 6,961

Service charges on deposits 4,928 4,793 5,330 5,009 4,318

ATM, interchange and credit card fees 9,853 8,677 8,376 8,644 8,049

Gain on sale and fees on mortgage loans 8,291 9,894 11,116 15,228 13,676

Net gain on sale of available-for-sale securities 5 808 23 36 1,512

Net gain on sale of foreclosed assets 1 55 87 19 52

Net gain (loss) on sale of assets 74 145 22 (2) (24)

Interest on loan recoveries 704 382 235 202 154

Other noninterest income 2,125 1,821 2,848 1,978 2,221

Total noninterest income $ 34,673 $ 34,874 $ 35,709 $ 38,575 $ 36,919

NONINTEREST EXPENSE

Salaries, commissions and employee benefits, excluding profit sharing $ 32,936 $ 32,636 $ 34,773 $ 32,104 $ 28,836

Profit sharing expense 2,110 2,295 6,245 1,545 1,978

Net occupancy expense 3,241 3,147 3,067 3,193 3,101

Equipment expense 2,177 2,164 2,154 2,157 2,010

FDIC insurance premiums 766 701 663 587 463

ATM, interchange and credit card expenses 3,039 2,772 2,811 2,829 2,610

Legal, tax and professional fees 3,352 2,726 2,302 2,615 2,931

Audit fees 430 440 407 526 739

Printing, stationery and supplies 489 325 449 615 533

Amortization of intangible assets 412 412 483 490 508

Advertising and public relations 1,392 1,388 1,600 797 1,011

Operational and other losses 534 287 537 621 728

Software amortization and expense 2,829 2,619 2,563 2,265 2,010

Other noninterest expense 5,667 5,811 5,651 5,249 5,863

Total noninterest expense $ 59,374 $ 57,723 $ 63,705 $ 55,593 $ 53,321

TAX EQUIVALENT YIELD ADJUSTMENT $ 3,633 $ 3,547 $ 3,355 $ 3,170 $ 2,902

Six Months Ended

June 30,

NONINTEREST INCOME 2021 2020

Trust fees $ 16,991 $ 14,398

Service charges on deposits 9,721 10,233

ATM, interchange and credit card fees 18,530 15,449

Gain on sale and fees on mortgage loans 18,185 17,528

Net gain (loss) on sale of available-for-sale securities 813 3,574

Net gain (loss) on sale of foreclosed assets 56 53

Net gain (loss) on sale of assets 219 92

Interest on loan recoveries 1,086 419

Other noninterest income 3,947 3,905

Total noninterest income $ 69,548 $ 65,651

NONINTEREST EXPENSE

Salaries, commissions and employee benefits, excluding profit sharing $ 65,572 $ 57,506

Profit sharing expense 4,405 2,950

Net occupancy expense 6,388 6,128

Equipment expense 4,341 4,085

FDIC insurance premiums 1,467 508

ATM, interchange and credit card expenses 5,811 5,595

Legal, tax and professional fees 6,078 5,852

Audit fees 870 1,150

Printing, stationery and supplies 814 1,099

Amortization of intangible assets 824 1,017

Advertising and public relations 2,780 2,206

Operational and other losses 821 1,304

Software amortization and expense 5,448 4,034

Other noninterest expense 11,479 15,206

Total noninterest expense $ 117,098 $ 108,640

TAX EQUIVALENT YIELD ADJUSTMENT $ 7,180 $ 4,735

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Three Months Ended Three Months Ended

June 30, 2021 Mar. 31, 2021

Average Tax Equivalent Yield / Average Tax Equivalent Yield /

Balance Interest Rate Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 3,049 $ 4 0.54 % $ 1,942 $ 3 0.58 %

Interest-bearing deposits in nonaffiliated banks 796,835 211 0.11 637,129 159 0.10

Taxable securities 2,656,211 11,449 1.72 2,251,419 10,264 1.82

Tax exempt securities 2,461,924 17,410 2.83 2,368,615 16,979 2.87

Loans 5,383,781 67,161 5.00 5,296,149 66,753 5.11

Total interest-earning assets 11,301,800 $ 96,235 3.42 % 10,555,254 $ 94,158 3.62 %

Noninterest-earning assets 692,282 700,550

Total assets $ 11,994,082 $ 11,255,804

Interest-bearing liabilities:

Deposits $ 6,229,991 $ 1,560 0.10 % $ 5,916,237 $ 1,696 0.12 %

Borrowings 527,669 93 0.07 456,620 91 0.08

Total interest-bearing liabilities 6,757,660 $ 1,653 0.10 % 6,372,857 $ 1,787 0.11 %

Noninterest-bearing liabilities 3,546,677 3,214,237

Shareholders' equity 1,689,745 1,668,710

Total liabilities and shareholders' equity $ 11,994,082 $ 11,255,804

Net interest income and margin (tax equivalent) $ 94,582 3.36 % $ 92,371 3.55 %

Three Months Ended Three Months Ended

Dec. 31, 2020 Sept. 30, 2020

Average Tax Equivalent Yield / Average Tax Equivalent Yield /

Balance Interest Rate Balance Interest Rate

Interest-earning assets:

Federal funds sold $ - $ - - % $ 2,009 $ 3 0.51 %

Interest-bearing deposits in nonaffiliated banks 195,637 50 0.10 223,104 59 0.10

Taxable securities 2,086,419 10,708 2.05 2,187,547 12,063 2.21

Tax exempt securities 2,318,912 16,733 2.89 2,058,032 15,737 3.06

Loans 5,356,229 68,321 5.07 5,334,174 66,681 4.97

Total interest-earning assets 9,957,197 $ 95,812 3.83 % 9,804,866 $ 94,543 3.84 %

Noninterest-earning assets 674,229 671,374

Total assets $ 10,631,426 $ 10,476,240

Interest-bearing liabilities:

Deposits $ 5,479,873 $ 1,826 0.13 % $ 5,270,600 $ 2,064 0.16 %

Borrowings 428,117 94 0.09 482,555 99 0.08

Total interest-bearing liabilities 5,907,990 $ 1,920 0.13 % 5,753,155 $ 2,163 0.15 %

Noninterest-bearing 3,093,637 3,122,995liabilities

Shareholders' equity 1,629,799 1,600,090

Total liabilities and shareholders' equity $ 10,631,426 $ 10,476,240

Net interest income and margin (tax equivalent) $ 93,892 3.75 % $ 92,380 3.75 %

Three Months Ended

June 30, 2020

Average Tax Equivalent Yield /

Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 840 $ 1 0.51 %

Interest-bearing deposits in nonaffiliated banks 352,628 86 0.10

Taxable securities 2,399,364 14,030 2.34

Tax exempt securities 1,800,339 14,733 3.27

Loans 5,248,052 66,249 5.08

Total interest-earning assets 9,801,223 $ 95,099 3.90 %

Noninterest-earning assets 663,595

Total assets $ 10,464,818

Interest-bearing liabilities:

Deposits $ 5,135,772 $ 2,550 0.20 %

Borrowings 877,076 412 0.19

Total interest-bearing liabilities 6,012,848 $ 2,962 0.20 %

Noninterest-bearingliabilities 2,915,461

Shareholders' equity 1,536,509

Total liabilities and shareholders' equity $ 10,464,818

Net interest income and margin (tax equivalent) $ 92,137 3.78 %

Six Months Ended Six Months Ended

June 30, 2021 June 30, 2020

Average Tax Equivalent Yield / Average Tax Equivalent Yield /

Balance Interest Rate Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 2,499 $ 7 0.56 % $ 1,776 $ 11 1.26 %

Interest-bearing deposits in nonaffiliated banks 717,423 370 0.10 290,469 831 0.58

Taxable securities 2,454,933 21,712 1.77 2,331,347 28,685 2.46

Tax exempt securities 2,415,527 34,389 2.85 1,573,591 25,933 3.30

Loans 5,340,207 133,914 5.06 4,957,744 129,572 5.26

Total interest-earning assets 10,930,589 $ 190,392 3.51 % 9,154,927 $ 185,032 4.06 %

Noninterest-earning assets 696,393 674,311

Total assets $ 11,626,982 $ 9,829,238

Interest-bearing liabilities:

Deposits $ 6,073,981 $ 3,255 0.11 % $ 5,019,929 $ 9,231 0.37 %

Borrowings 492,341 184 0.08 668,840 928 0.28

Total interest-bearing liabilities 6,566,322 $ 3,439 0.11 % 5,688,769 $ 10,159 0.36 %

Noninterest-bearing 3,381,374 2,631,974liabilities

Shareholders' equity 1,679,286 1,508,495

Total liabilities and shareholders' equity $ 11,626,982 $ 9,829,238

Net interest income and margin (tax equivalent) $ 186,953 3.45 % $ 174,873 3.84 %

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SOURCE First Financial Bankshares, Inc.