PR Newswire | Jan 27, 2022 04:06PM EST

OF CONSECUTIVE ANNUAL EARNINGS GROWTH

01/27 15:05 CST

FIRST FINANCIAL BANKSHARES ANNOUNCES FOURTH QUARTER 2021 EARNINGS AND 35TH YEAR OF CONSECUTIVE ANNUAL EARNINGS GROWTH ABILENE, Texas, Jan. 27, 2022

ABILENE, Texas, Jan. 27, 2022 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the fourth quarter of 2021 of $55.34 million compared to earnings of $58.48 million for the same quarter a year ago. Basic and diluted earnings per share were $0.39 for the fourth quarter of 2021 compared with $0.41 for the same quarter a year ago.

Earnings for the year ended December 31, 2021 totaled $227.56 million compared to $202.03 million for the year ended December 31, 2020, reflecting an increase of $25.53 million, or 12.64 percent. Basic and diluted earnings per share were $1.60 and $1.59, respectively, for the year ended December 31, 2021 compared with basic and diluted earnings per share of $1.42 for the year ended December 31, 2020.

"Over the last two years, we have remained focused on the execution of our excellence in customer service culture across each of our markets to meet the needs of our customers during these times. Whether it was providing PPP funds, keeping our branches open, accessing the Mainstreet Lending Program, providing access to the mortgage secondary markets, protecting their deposits, or providing capital to grow and expand their business, we remained TEXAS STRONG for our communities. We finished 2021 with outstanding growth reflected by overall loan growth, excluding PPP loans, of $648.81 million, or 13.84 percent, and deposit growth of $1.89 billion, or 21.79 percent. Our continual commitment to customer service supported by our growth provides strong momentum as we begin 2022. 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 fourth quarter of 2021 was $94.81 million compared to $90.54 million for the fourth quarter of 2020. Average-earning assets increased to $11.89 billion for the fourth quarter of 2021 compared to $9.96 billion a year ago. The net interest margin, on a taxable equivalent basis, was 3.29 percent for the fourth quarter of 2021 compared to 3.75 percent in the fourth 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 December 31, 2021

Recognized Number Period-End Fees During Number of Amount Amount, Unamortized the Quarter Loans of Loans Net Fees Ended December 31, 2021

PPP Round 1 6,530 $ 703,450 37 $ 1,970 $ 21 $ 42

PPP Round 2 3,179 267,423 305 50,823 1,779 4,246

PPP Total 9,709 $ 970,873 342 $ 52,793 $ 1,800 $ 4,288

PPP loan balances totaled $52.79 million at December 31, 2021 and accounted for $103.35 million in average balances for the fourth quarter of 2021 and $327.10 million for the year ended December 31, 2021.

The Company recorded a provision for credit losses of $2.06 million for the fourth quarter of 2021 compared to a reversal of provision for credit losses of $8.03 million for the fourth quarter of 2020. At December 31, 2021, the allowance for credit losses totaled $63.47 million, or 1.18 percent of loans held-for-investment ("loans" hereafter), or 1.19 percent of loans, excluding PPP loans, compared to $66.53 million at December 31, 2020, or 1.29 percent of loans, or 1.42 percent of loans, excluding PPP loans. Additionally, the reserve for unfunded commitments totaled $6.44 million at December 31, 2021 compared to $5.49 million at December 31, 2020.

For the fourth quarter of 2021, net charge-offs totaled $2.28 million compared to net charge-offs of $561 thousand for the fourth quarter of 2020. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.63 percent at December 31, 2021, compared with 0.83 percent at December 31, 2020. Classified loans totaled $161.19 million at December 31, 2021, compared to $197.45 million at December 31, 2020.

Noninterest income for the fourth quarter of 2021 was $34.90 million compared to $35.71 million for the fourth quarter of 2020, as a result of the following:

* Trust fees increased to $9.67 million for the fourth quarter of 2021 from $7.67 million for the fourth quarter of 2020. The fair value of trust assets managed increased to $8.70 billion at December 31, 2021 compared to $7.51 billion at December 31, 2020. * Service charges on deposits increased to $5.76 million for the fourth quarter of 2021 compared with $5.33 million for the fourth quarter of 2020. * ATM, interchange and credit card fees increased to $9.96 million for the fourth quarter of 2021 from $8.38 million for the fourth quarter of 2020, driven by the over 16,000 net new accounts opened in 2021, debit cards issued and overall customer utilization. * Mortgage income was $6.27 million for the fourth quarter of 2021 compared to $11.12 million for the fourth quarter of 2020 due to lower overall origination volumes and margins. * Loan interest recoveries during the fourth quarter of 2021 totaled $1.21 million compared to $235 thousand for the fourth quarter of 2020.

Noninterest expense for the fourth quarter of 2021 totaled $61.67 million compared to $63.71 million for the fourth quarter of 2020, as a result of the following:

* Salary, commissions and employee benefit costs totaled $34.98 million for the fourth quarter of 2021, compared to $41.02 million in the fourth quarter of 2020. The decrease over the same quarter in the prior year was driven by decreases in profit sharing expense and incentive compensation accruals in the fourth quarter of 2021 when compared to the same period in 2020. In the fourth quarter of 2020, profit sharing and incentive expenses were higher driven by higher earnings that primarily resulted from the Company's initial adoption of CECL. Offsetting these decreases were annual merit-based pay increases effective March 1, 2021.

The Company's efficiency ratio was 45.84 percent for the year ended December 31, 2021 compared to 45.49 percent for the year ended December 31, 2020.

As of December 31, 2021, consolidated assets for the Company totaled $13.10 billion compared to $10.90 billion at December 31, 2020. Loans totaled $5.39 billion at December 31, 2021, compared with loans of $5.17 billion at December 31, 2020. Excluding PPP loans, loans have grown $648.81 million, or 13.84 percent, from December 31, 2020 balances. Deposits totaled $10.57 billion at December 31, 2021, compared to $8.68 billion at December 31, 2020, representing an increase of 21.79 percent. Shareholders' equity rose to $1.76 billion as of December 31, 2021, compared to $1.68 billion at December 31, 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 Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,

Cash and due from banks $ 205,053 $ 201,901 $ 190,061 $ 190,350 $ 211,113

Interest-bearing deposits in banks 323,535 359,241 654,531 893,221 517,971

Investment securities 6,573,179 6,119,984 5,578,048 5,109,631 4,393,029

Loans, held-for-investment, excluding PPP Loans 5,336,179 5,147,160 4,984,210 4,790,752 4,687,370

PPP loans 52,793 139,334 320,392 531,810 483,663

Total loans, held-for-investment 5,388,972 5,286,494 5,304,602 5,322,562 5,171,033

Allowance for loan losses (63,465) (63,370) (62,138) (62,974) (66,534)

Net loans, held-for-investment 5,325,507 5,223,124 5,242,464 5,259,588 5,104,499

Loans, held-for-sale 37,810 47,721 61,802 65,405 83,969

Premises and equipment, net 149,764 147,516 147,655 142,415 142,269

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

Other intangible assets 3,298 3,689 4,087 4,499 4,911

Other assets 170,834 126,601 136,954 124,297 133,258

Total assets $ 13,102,461 $ 12,543,258 $ 12,329,083 $ 12,102,887 $ 10,904,500

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits $ 3,780,230 $ 3,574,405 $ 3,427,038 $ 3,350,145 $ 2,982,697

Interest-bearing deposits 6,786,258 6,318,712 6,354,656 6,063,302 5,693,120

Total deposits 10,566,488 9,893,117 9,781,694 9,413,447 8,675,817

Borrowings 671,152 648,679 549,969 548,604 430,093

Trade date payable - 174,236 189,838 381,871 14,641

Other liabilities 105,597 93,491 87,213 93,537 105,759

Shareholders' equity 1,759,224 1,733,735 1,720,369 1,665,428 1,678,190

Total liabilities and shareholders' equity $ 13,102,461 $ 12,543,258 $ 12,329,083 $ 12,102,887 $ 10,904,500

Quarter Ended

2021 2020

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

Interest income $ 95,995 $ 97,198 $ 92,602 $ 90,610 $ 92,457

Interest expense 1,187 1,416 1,653 1,786 1,920

Net interest income 94,808 95,782 90,949 88,824 90,537

Provision for credit losses 2,064 - (1,206) (1,997) (8,033)

Net interest income after provisions for credit losses 92,744 95,782 92,155 90,821 98,570

Noninterest income 34,903 37,726 34,673 34,874 35,709

Noninterest expense 61,672 62,939 59,374 57,723 63,705

Net income before income taxes 65,975 70,569 67,454 67,972 70,574

Income tax expense 10,638 11,641 11,075 11,054 12,099

Net income $ 55,337 $ 58,928 $ 56,379 $ 56,918 $ 58,475

PER COMMON SHARE DATA

Net income - basic $ 0.39 $ 0.41 $ 0.40 $ 0.40 $ 0.41

Net income - diluted 0.39 0.41 0.39 0.40 0.41

Cash dividends declared 0.15 0.15 0.15 0.13 0.13

Book value 12.34 12.17 12.08 11.70 11.80

Tangible book value 10.12 9.94 9.85 9.47 9.57

Market value 50.84 45.95 49.13 46.73 36.17

Shares outstanding - end of period 142,532,116 142,467,687 142,359,774 142,285,611 142,161,834

Average outstanding shares - basic 142,437,804 142,334,449 142,245,555 142,146,275 142,057,705

Average outstanding shares - diluted 143,251,521 143,218,920 143,164,611 143,002,658 142,644,088

PERFORMANCE RATIOS

Return on average assets 1.74 % 1.90 % 1.89 % 2.05 % 2.19 %

Return on average equity 12.63 13.43 13.38 13.83 14.27

Return on average tangible equity 15.45 16.43 16.48 17.09 17.74

Net interest margin (tax equivalent) 3.29 3.41 3.36 3.55 3.75

Efficiency ratio 46.18 45.88 45.94 45.36 49.15

Year Ended

Dec. 31,

INCOME STATEMENTS 2021 2020

Interest income $ 376,405 $ 364,128

Interest expense 6,042 14,243

Net interest income 370,363 349,885

Provision for credit losses (1,139) 19,517

Net interest income after provisions for credit losses 371,502 330,368

Noninterest income 142,176 139,935

Noninterest expense 241,708 227,938

Net income before income taxes 271,970 242,365

Income tax expense 44,408 40,331

Net income $ 227,562 $ 202,034

PER COMMON SHARE DATA

Net income - basic $ 1.60 $ 1.42

Net income - diluted 1.59 1.42

Cash dividends declared 0.58 0.51

Book Value 12.34 11.80

Tangible book value 10.12 9.57

Market Value 50.84 36.17

Shares outstanding - end of period 142,532,116 142,161,834

Average outstanding shares - basic 142,291,939 142,032,420

Average outstanding shares - diluted 143,134,220 142,554,991

PERFORMANCE RATIOS

Return on average assets 1.89 % 1.98 %

Return on average equity 13.31 12.93

Return on average tangible equity 16.35 16.25

Net interest margin (tax equivalent) 3.40 3.79

Efficiency ratio 45.84 45.49

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Quarter Ended

2021 2020

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

Balance at beginning of period $ 63,370 $ 62,138 $ 62,974 $ 66,534 $ 76,038

Loans charged off (3,067) (1,475) (392) (574) (1,339)

Loan recoveries 783 2,707 595 443 778

Net recoveries (charge-offs) (2,284) 1,232 203 (131) (561)

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 2,379 - (1,039) (3,429) (10,002)

Balance at end of period $ 63,465 $ 63,370 $ 62,138 $ 62,974 $ 66,534

ALLOWANCE FOR UNFUNDED COMMITMENTS

Balance at beginning of period $ 6,751 $ 6,751 $ 6,918 $ 5,486 $ 2,309

Initial adoption of ASU 2016-13 (CECL) - recorded in retained earnings - - - - 1,208

Provision for unfunded commitments (315) - (167) 1,432 1,969

Balance at end of period $ 6,436 $ 6,751 $ 6,751 $ 6,918 $ 5,486

Allowance for loan losses /

period-end loans held-for-investment 1.18 % 1.20 % 1.17 % 1.18 % 1.29 %

Allowance for loan losses /

nonperforming loans 200.33 250.92 208.45 160.00 155.61

Net charge-offs (recoveries) / average total loans

(annualized) 0.17 (0.09) (0.02) 0.01 0.04

Quarter Ended

2021 2020

COMPOSITION OF LOANS HELD-FOR-INVESTMENT Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,

Commercial:

C&I $ 784,282 $ 680,263 $ 662,711 $ 646,316 $ 647,719

PPP 52,793 139,334 320,392 531,810 483,663

Municipal 177,905 165,847 179,356 176,949 181,325

Total Commercial 1,014,980 985,444 1,162,459 1,355,075 1,312,707

Agriculture 98,089 98,947 95,212 90,366 94,864

Real Estate:

Construction & Development 749,793 656,530 550,928 587,928 553,959

Farm 217,220 203,064 185,288 162,046 152,237

Non-Owner Occupied CRE 623,434 674,958 673,608 650,144 617,686

Owner Occupied CRE 821,653 824,231 820,055 759,906 746,974

Residential 1,334,419 1,328,798 1,328,474 1,254,727 1,248,409

Total Real Estate 3,746,519 3,687,581 3,558,353 3,414,751 3,319,265

Consumer:

Auto 405,416 394,072 383,764 370,027 353,595

Non-Auto 123,968 120,450 104,814 92,343 90,602

Total Consumer 529,384 514,522 488,578 462,370 444,197

Total loans held-for-investment $ 5,388,972 $ 5,286,494 $ 5,304,602 $ 5,322,562 $ 5,171,033

SUMMARY OF LOAN CLASSIFICATION

Special Mention $ 55,670 $ 53,620 $ 54,497 $ 61,866 $ 56,585

Substandard 105,515 112,151 120,497 128,550 140,866

Doubtful - - - - -

Total classified loans $ 161,185 $ 165,771 $ 174,994 $ 190,416 $ 197,451

NONPERFORMING ASSETS

Nonaccrual loans $ 31,652 $ 25,210 $ 29,786 $ 39,333 $ 42,619

Accruing troubled debt restructured loans 21 22 23 23 24

Accruing loans 90 days past due 8 23 - 2 113

Total nonperforming loans 31,681 25,255 29,809 39,358 42,756

Foreclosed assets 2,477 28 305 300 142

Total nonperforming assets $ 34,158 $ 25,283 $ 30,114 $ 39,658 $ 42,898

As a % of loans held-for-investment and foreclosed assets 0.63 % 0.48 % 0.57 % 0.75 % 0.83 %

As a % of end of period total assets 0.26 0.20 0.24 0.33 0.39

OIL AND GAS PORTFOLIO INFORMATION *

Oil and gas loans $ 140,034 $ 96,469 $ 103,166 $ 105,261 $ 106,237

Oil and gas loans as a % of total loans held-for-investment 2.62 % 1.87 % 2.07 % 2.20 % 2.27 %

Classified oil and gas loans $ 11,821 $ 10,831 $ 13,090 $ 10,079 $ 13,298

Nonaccrual oil and gas loans 3,701 3,058 3,986 4,759 4,774

Net charge-offs (recoveries) on oil and gas loans - (71) 59 40 24

* Excluding PPP loans

RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *

Retail loans $ 375,752 $ 348,797 $ 326,409 $ 282,310 $ 216,244

Restaurant loans 60,894 59,031 56,997 51,772 48,618

Hotel loans 62,404 60,733 71,008 71,435 71,716

Other hospitality loans 26,438 27,369 27,929 24,014 21,970

Travel loans 598 593 790 664 780

Total retail/restaurant/hospitality loans $ 526,086 $ 496,523 $ 483,133 $ 430,195 $ 359,328

Retail/Restaurant/Hospitality loans as a % of total loans held-for-investment 9.86 % 9.65 % 9.69 % 8.98 % 7.67 %

Classified Retail/Restaurant/Hospitality loans $ 32,747 $ 34,341 $ 43,635 $ 45,214 $ 31,192

Nonaccrual Retail/Restaurant/Hospitality loans 1,487 1,995 5,600 6,575 5,975

Net charge-offs (recoveries) on Retail/Restaurant/Hospitality loans 42 (506) - - 561

* Excluding PPP loans

CAPITAL RATIOS

Common equity Tier 1 capital ratio 19.35 % 19.71 % 20.04 % 20.32 % 20.79 %

Tier 1 capital ratio 19.35 19.71 20.04 20.32 20.79

Total capital ratio 20.34 20.76 21.12 21.47 22.03

Tier 1 leverage ratio 11.13 11.19 11.10 11.55 11.86

Tangible common equity ratio 11.55 11.90 11.75 12.35 12.71

Equity/Assets ratio 13.43 13.82 13.95 13.76 15.39

Quarter Ended

2021 2020

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

Trust fees $ 9,670 $ 9,484 $ 8,692 $ 8,299 $ 7,672

Service charges on deposits 5,762 5,673 4,928 4,793 5,330

ATM, interchange and credit card fees 9,955 9,793 9,853 8,677 8,376

Gain on sale and fees on mortgage loans 6,272 8,788 8,291 9,894 11,116

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

Net gain on sale of foreclosed assets 107 27 1 55 87

Net gain (loss) on sale of assets (3) (6) 74 145 22

Interest on loan recoveries 1,207 1,746 704 382 235

Other noninterest income 1,932 2,220 2,125 1,821 2,848

Total noninterest income $ 34,903 $ 37,726 $ 34,673 $ 34,874 $ 35,709

NONINTEREST EXPENSE

Salaries, commissions and employee benefits, excluding profit sharing $ 31,876 $ 34,460 $ 32,936 $ 32,636 $ 34,773

Profit sharing expense 3,099 2,630 2,110 2,295 6,245

Net occupancy expense 3,333 3,288 3,241 3,147 3,067

Equipment expense 2,382 2,450 2,177 2,164 2,154

FDIC insurance premiums 848 815 766 701 663

ATM, interchange and credit card expenses 3,227 2,935 3,039 2,772 2,811

Legal, tax and professional fees 2,835 2,893 3,352 2,726 2,302

Audit fees 423 466 430 440 407

Printing, stationery and supplies 664 432 489 325 449

Amortization of intangible assets 391 398 412 412 483

Advertising and public relations 1,842 1,746 1,392 1,388 1,600

Operational and other losses 1,385 1,087 534 287 537

Software amortization and expense 2,817 2,855 2,829 2,619 2,563

Other noninterest expense 6,550 6,484 5,667 5,811 5,651

Total noninterest expense $ 61,672 $ 62,939 $ 59,374 $ 57,723 $ 63,705

TAX EQUIVALENT YIELD ADJUSTMENT $ 3,841 $ 3,670 $ 3,633 $ 3,547 $ 3,355

Year Ended

Dec. 31,

NONINTEREST INCOME 2021 2020

Trust fees $ 36,145 $ 29,531

Service charges on deposits 21,156 20,572

ATM, interchange and credit card fees 38,278 32,469

Gain on sale and fees on mortgage loans 33,245 43,872

Net gain (loss) on sale of available-for-sale securities 815 3,633

Net gain (loss) on sale of foreclosed assets 190 159

Net gain (loss) on sale of assets 210 112

Interest on loan recoveries 4,039 856

Other noninterest income 8,098 8,731

Total noninterest income $ 142,176 $ 139,935

NONINTEREST EXPENSE

Salaries, commissions and employee benefits, excluding $ 131,908 $ 124,383profit sharing

Profit sharing expense 10,134 10,740

Net occupancy expense 13,009 12,388

Equipment expense 9,173 8,396

FDIC insurance premiums 3,130 1,758

ATM, interchange and credit card expenses 11,973 11,235

Legal, tax and professional fees 11,806 10,769

Audit fees 1,759 2,083

Printing, stationery and supplies 1,910 2,163

Amortization of intangible assets 1,613 1,990

Advertising and public relations 6,368 4,603

Operational and other losses 3,293 2,462

Software amortization and expense 11,120 8,862

Other noninterest expense 24,512 26,106

Total noninterest expense $ 241,708 $ 227,938

TAX EQUIVALENT YIELD ADJUSTMENT $ 14,691 $ 11,260

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Three Months Ended Three Months Ended

Dec. 31, 2021 Sept. 30, 2021

Average Tax Equivalent Yield / Average Tax Equivalent Yield /

Balance Interest Rate Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 82 $ - 0.48 % $ 1,554 $ 2 0.51 %

Interest-bearing deposits in nonaffiliated banks 320,102 124 0.15 612,551 236 0.15

Taxable securities 3,590,137 13,556 1.51 3,081,215 12,122 1.57

Tax exempt securities 2,636,360 18,163 2.76 2,542,606 17,701 2.78

Loans 5,347,069 67,993 5.04 5,337,807 70,807 5.26

Total interest-earning assets 11,893,750 $ 99,836 3.33 % 11,575,733 $ 100,868 3.46 %

Noninterest-earning assets 726,932 705,099

Total assets $ 12,620,682 $ 12,280,832

Interest-bearing liabilities:

Deposits $ 6,399,343 $ 1,110 0.07 % $ 6,346,267 $ 1,340 0.08 %

Borrowings 639,725 77 0.05 599,934 76 0.05

Total interest-bearing liabilities 7,039,068 $ 1,187 0.07 % 6,946,201 $ 1,416 0.08 %

Noninterest-bearing deposits 3,744,848 3,490,685

Other noninterest-bearing 99,091 103,446liabilities

Shareholders' equity 1,737,675 1,740,500

Total liabilities and shareholders' equity $ 12,620,682 $ 12,280,832

Net interest income and margin (tax equivalent) $ 98,649 3.29 % $ 99,452 3.41 %

Three Months Ended 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 deposits 3,439,683 3,114,656

Other noninterest-bearing 106,994 99,581liabilities

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

Dec. 31, 2020

Average Tax Equivalent Yield /

Balance Interest Rate

Interest-earning assets:

Federal funds sold $ - $ - - %

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

Taxable securities 2,086,419 10,708 2.05

Tax exempt securities 2,318,912 16,733 2.89

Loans 5,356,229 68,321 5.07

Total interest-earning assets 9,957,197 $ 95,812 3.83 %

Noninterest-earning assets 674,229

Total assets $ 10,631,426

Interest-bearing liabilities:

Deposits $ 5,479,873 $ 1,826 0.13 %

Borrowings 428,117 94 0.09

Total interest-bearing liabilities 5,907,990 $ 1,920 0.13 %

Noninterest-bearing deposits 2,987,572

Other noninterest-bearing 106,065liabilities

Shareholders' equity 1,629,799

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

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

Year Ended Year Ended

Dec. 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 $ 1,651 $ 9 0.55 % $ 1,388 $ 14 0.99 %

Interest-bearing deposits in nonaffiliated banks 590,843 730 0.12 249,698 939 0.38

Taxable securities 2,898,924 47,390 1.63 2,233,634 51,456 2.30

Tax exempt securities 2,503,220 70,253 2.81 1,882,711 58,403 3.10

Loans 5,341,332 272,714 5.11 5,152,531 264,576 5.13

Total interest-earning assets 11,335,970 $ 391,096 3.45 % 9,519,962 $ 375,388 3.94 %

Noninterest-earning assets 706,285 673,553

Total assets $ 12,042,255 $ 10,193,515

Interest-bearing liabilities:

Deposits $ 6,224,621 $ 5,704 0.09 % $ 5,198,554 $ 13,119 0.25 %

Borrowings 556,610 338 0.06 561,505 1,124 0.20

Total interest-bearing liabilities 6,781,231 $ 6,042 0.09 % 5,760,059 $ 14,243 0.25 %

Noninterest-bearing deposits 3,449,313 2,782,896

Other noninterest-bearing 102,279 88,550liabilities

Shareholders' equity 1,709,432 1,562,010

Total liabilities and shareholders' equity $ 12,042,255 $ 10,193,515

Net interest income and margin (tax equivalent) $ 385,054 3.40 % $ 361,145 3.79 %

View original content: https://www.prnewswire.com/news-releases/first-financial-bankshares-announces-fourth-quarter-2021-earnings-and-35th-year-of-consecutive-annual-earnings-growth-301470179.html

SOURCE First Financial Bankshares, Inc.