PR Newswire | Jul 23, 2020 04:06PM EDT

07/23 15:05 CDT

First Financial Bankshares Announces Second Quarter Earnings Results ABILENE, Texas, July 23, 2020

ABILENE, Texas, July 23, 2020 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2020 of $53.47 million when compared with earnings of $42.09 million in the same quarter last year and $37.23 million in the first quarter of 2020. Basic and diluted earnings per share were $0.38 for the second quarter of 2020 compared with $0.31 in the same quarter a year ago and $0.26 for the first quarter of 2020.

All amounts for the three and six-months ended June 30, 2020, include the results of the Company's acquisition of TB&T Bancshares, Inc. and its wholly-owned subsidiary, The Bank & Trust of Bryan/College Station, Texas which was effective January 1, 2020. As of the acquisition date, The Bank & Trust of Bryan/College Station had total assets of $631.26 million, total loans of $455.18 million and total deposits of $548.38 million. The Company recorded a $7.65 million discount on the acquired loan portfolio.

"We are very pleased with our second quarter earnings performance, especially in the current environment of a pandemic, the shutdown of the economy and lower oil and gas prices," said F. Scott Dueser, Chairman, President and CEO. "We could not be prouder of our team that responded quickly to the SBA-PPP program and funded nearly 6,500 loans totaling over $700 million which not only took care of our existing customers but brought many new loan and depository customers from other banks that were not as well prepared to offer the PPP program or chose not to participate at all. We responded to the pandemic by protecting our employees and customers while keeping our doors open and working very long hours to make sure that our customers were taken care of well. At the same time, we had record mortgage closings. Although it was a tough quarter, we navigated well through the challenges and continue to stay TEXAS STRONG."

Overall, net interest income for the second quarter of 2020 increased $8.33 million and $17.62 million from the first quarter of 2020 and the second quarter of 2019, respectively. Net interest income was positively impacted by the Company's participation in the Small Business Administration Paycheck Protection Program (PPP), an increase in investment securities and the reduction in interest rates paid on deposits. The following table summarizes key net interest income and net interest margin metrics for the second and first quarters of 2020 and the second quarter of 2019:

Three Months Ended

(dollars in thousands)

June 30, March 31, June 30, 2020 2020 2019

Interest income $ 92,197 $ 88,100 $ 79,576

Interest expense 2,962 7,198 7,961

Net interest income 89,235 80,902 71,615

Tax equivalent adjustment (TE) 2,902 1,834 1,664

Net interest income (TE) $ 92,137 $ 82,736 $ 73,279

Net interest margin 3.78 % 3.91 % 3.98 %

Impact of accretion on acquired loans 0.04 0.02 0.02

Yield on interest-earning assets 3.90 4.25 4.41

Rate on interest-bearing liabilities 0.20 0.54 0.70

Average earning assets $ 9,801,223 $ 8,501,225 $ 7,389,258

The Company processed approximately 6,500 PPP loans and funded $703.12 million ($586.03 million in average balances for the second quarter of 2020). The Company received PPP related origination fees totaling approximately $26.07 million and incurred incremental direct origination costs of $3.62 million, both of which have been deferred and are being amortized over the shorter of the repayment period or 24 months, the contractual life of these loans, totaling $2.83 million in the second quarter of 2020.

The provision for loan losses was $8.70 million in the second quarter of 2020 compared with $9.85 million in the first quarter of 2020 and $600 thousand in the second quarter of 2019. The Company's provision for loan losses in the second quarter of 2020 continues to reflect uncertainty surrounding the economic impact caused by the coronavirus (COVID-19) and the decline in oil and gas prices. At June 30, 2020, the allowance for loan losses totaled $68.95 million, or 1.31 percent of loans held for investment, or 1.52 percent of loans held for investment excluding PPP loans, compared to $60.44 million at March 31, 2020, or 1.30 percent of loans held for investment.

Accounting Standards Update (ASU) 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (CECL), became effective for the Company on January 1, 2020. However, the COVID-19 related legislation included an option for entities to delay the implementation of CECL until the earlier of the termination date of the national emergency declaration by the President, or December 31, 2020. The Company elected to delay implementation of CECL and has calculated and recorded the provision for loan losses for the quarter under the incurred loss model that existed prior to CECL. The CECL related modeling continues to be refined as the Company moves to adopt CECL later this year.

Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.75 percent at June 30, 2020, compared with 0.86 percent at March 31, 2020, and 0.69 percent at June 30, 2019. Classified loans totaled $200.90 million at June 30, 2020, compared to $190.35 million at March 31, 2020, and $126.04 million at June 30, 2019.

Beginning in mid-March of 2020, the Company began offering deferral and modification of principle and/or interest payments to selected borrowers on a case-by-case basis. At June 30, 2020, the Company had approximately 2,200 loans totaling $468.54 million in outstanding loans subject to deferral and modification agreements, representing 10.30 percent of outstanding loans held for investment, excluding PPP loans.

At June 30, 2020, loans with oil and gas industry exposure, excluding PPP loans, totaled $128.14 million, or 2.78 percent of total loans, excluding PPP loans. These loans comprised $28.37 million of classified loans including $3.70 million in nonperforming loan totals. At June 30, 2020, the Company's allowance for loan loss specific reserves on its total oil and gas loan portfolio totaled 4.17 percent of total oil and gas loans, excluding PPP loans, and net charge-offs totaled $195 thousand and $801 thousand for the three and six-months ended June 30, 2020, respectively.

In addition, at June 30, 2020, loan balances in the retail/restaurant/hospitality industries, excluding PPP loans, totaled $338.76 million or 7.34 percent of the Company's total loans, excluding PPP loans. These loans comprised $15.84 million of classified loans including $5.75 million in nonperforming loan totals. Net charge-offs related to this portfolio totaled $178 thousand and $308 thousand for the three and six-months ended June 30, 2020, respectively.

Noninterest income in the second quarter of 2020 rose to $36.92 million compared with $27.98 million in the same quarter a year ago. Trust fees decreased $66 thousand to $6.96 million in the second quarter of 2020 compared with $7.03 million in the same quarter last year. The fair value of trust assets managed increased to $6.78 billion from $6.19 billion a year ago. Service charges on deposits decreased to $4.32 million compared with $5.37 million in the same quarter a year ago due largely to the lack of economic activity caused by the pandemic during the second quarter of 2020. ATM, interchange and credit card fees increased 9.48 percent to $8.05 million compared with $7.35 million in the same quarter last year due to continued growth in the number of debit cards issued and our Bryan/College Station acquisition. Mortgage related income increased 189.68 percent to $13.68 million compared with $4.72 million in the same quarter a year ago due to a significant increase in the volume of loans originated. The Company's mortgage loan pipeline increased to $182.14 million as of June 30, 2020, when compared to $65.90 million at June 30, 2019. Also included in noninterest income during the second quarter of 2020 was a gain on sale of securities of $1.51 million compared to $676 thousand from the same quarter a year ago.

Noninterest expense for the second quarter of 2020 totaled $53.32 million compared to $48.30 million in the second quarter of 2019. The Company's efficiency ratio in the second quarter of 2020 was 41.32 percent compared with 47.71 percent in the same quarter last year. Included in noninterest expense in the second quarter of 2020 were salary and employee benefit costs of $30.81 million compared to $27.39 million in the same quarter a year ago, primarily driven by the Bryan/College Station acquisition, annual merit-based pay increases and higher mortgage related commissions, offset by the deferral of $3.62 million in PPP loan origination costs. Also included in noninterest expense in the second quarter of 2020 were conversion related costs totaling $583.46 thousand as a result of the Bryan/College Station acquisition.

As of June 30, 2020, consolidated assets for the Company totaled $10.34 billion compared to $9.70 billion at March 31, 2020 and $7.98 billion at June 30, 2019. Loans totaled $5.32 billion at June 30, 2020, compared with loans of $4.68 billion at March 31, 2020, and $4.06 billion at June 30, 2019. Deposits totaled $8.16 billion at June 30, 2020, compared to $7.21 billion at March 31, 2020, and $6.37 billion at June 30, 2019. Additional information related to the Company's loan and deposit balances are as follows:

Three Months Ended

(dollars in thousands)

Loans June 30, 2020 March 31, 2020 June 30, 2019

Loans HFI, excluding PPP loans $ 4,549,950 $ 4,639,389 $ 4,040,952

PPP loans, net of unearned income 703,117 - -

Total loans held-for-investment 5,253,067 4,639,389 4,040,952

Loans held-for-sale 66,370 42,034 22,305

Allowance for loan losses 68,947 60,440 51,820

Deposits

Noninterest-bearing deposits $ 2,941,679 $ 2,288,597 $ 2,167,552

Interest-bearing deposits without 4,749,841 4,456,061 3,768,703stated maturity

Time deposits 466,122 465,808 433,511

Total deposits $ 8,157,642 $ 7,210,466 $ 6,369,766

Shareholders' equity rose to $1.58 billion as of June 30, 2020, compared with $1.53 billion at March 31, 2020, and $1.16 billion at June 30, 2019, primarily from the Bryan/College Station acquisition. At June 30, 2020, the Company's capital ratios significantly exceeded all well-capitalized requirements.

About First Financial Bankshares:

Headquartered in Abilene, Texas, First Financial Bankshares 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 nine locations and First Technology Services, Inc., a technology operating company.

The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at 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

2020 2019

ASSETS June 30, Mar. 31, Dec. 31, Sept. 30, June 30,

Cash and due from banks $ 188,373 $ 191,486 $ 231,534 $ 198,855 $ 178,345

Interest-bearing deposits in banks 196,426 76,378 47,920 31,410 128,652

Interest-bearing time deposits in banks - - - - 960

Federal funds sold - - 3,150 - 700

Investment securities 4,118,863 4,107,069 3,413,317 3,397,156 3,259,492

Loans 5,319,437 4,681,423 4,223,197 4,140,815 4,063,257

Allowance for loan losses (68,947) (60,440) (52,499) (51,889) (51,820)

Net loans 5,250,490 4,620,983 4,170,698 4,088,926 4,011,437

Premises and equipment 138,933 139,554 131,022 132,367 134,322

Goodwill 313,481 312,842 171,565 171,565 171,565

Other intangible assets 5,884 6,392 2,102 2,340 2,586

Other assets 127,367 246,387 90,919 91,220 91,234

Total assets $ 10,339,817 $ 9,701,091 $ 8,262,227 $ 8,113,839 $ 7,979,293

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits $ 2,941,679 $ 2,288,597 $ 2,065,128 $ 2,210,997 $ 2,167,552

Interest-bearing deposits 5,215,963 4,921,869 4,538,678 4,186,686 4,202,214

Total deposits 8,157,642 7,210,466 6,603,806 6,397,683 6,369,766

Borrowings 449,224 857,871 381,356 400,155 362,005

Other liabilities 150,502 106,392 49,868 110,903 82,774

Shareholders' equity 1,582,449 1,526,362 1,227,197 1,205,098 1,164,748

Total liabilities and shareholders' equity $ 10,339,817 $ 9,701,091 $ 8,262,227 $ 8,113,839 $ 7,979,293

Quarter Ended

2020 2019

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

Interest income $ 92,197 $ 88,100 $ 82,123 $ 80,591 $ 79,576

Interest expense 2,962 7,198 6,801 7,953 7,961

Net interest income 89,235 80,902 75,322 72,638 71,615

Provision for loan losses 8,700 9,850 950 450 600

Net interest income after provision for loan losses 80,535 71,052 74,372 72,188 71,015

Noninterest income 36,919 28,732 27,347 28,669 27,976

Noninterest expense 53,321 55,318 51,938 48,910 48,304

Net income before income taxes 64,133 44,466 49,781 51,947 50,687

Income tax expense 10,663 7,234 8,393 8,867 8,594

Net income $ 53,470 $ 37,232 $ 41,388 $ 43,080 $ 42,093

PER COMMON SHARE DATA

Net income - basic $ 0.38 $ 0.26 $ 0.30 $ 0.32 $ 0.31

Net income - diluted 0.38 0.26 0.30 0.32 0.31

Cash dividends declared 0.13 0.12 0.12 0.12 0.12

Book Value 11.14 10.73 9.03 8.87 8.58

Market Value $ 28.89 $ 26.84 $ 35.10 $ 33.33 $ 30.79

Shares outstanding - end of period 142,035,396 142,314,930 135,891,755 135,822,456 135,809,224

Average outstanding shares - basic 141,973,522 142,118,864 135,747,381 135,693,901 135,650,599

Average outstanding shares - diluted 142,454,083 142,735,208 136,539,286 136,369,328 136,218,235

PERFORMANCE RATIOS

Return on average assets 2.06 % 1.63 % 2.01 % 2.15 % 2.14 %

Return on average equity 14.00 10.11 13.56 14.46 15.04

Return on average tangible equity 17.67 12.89 15.83 16.96 17.81

Net interest margin (tax equivalent) 3.78 3.91 3.99 3.94 3.98

Efficiency ratio 41.32 49.63 49.75 47.54 47.71

Six Months Ended

June 30,

INCOME STATEMENTS 2020 2019

Interest income $ 180,297 $ 156,477

Interest expense 10,159 15,348

Net interest income 170,138 141,129

Provision for loan losses 18,550 1,565

Net interest income after provision for loan losses 151,588 139,564

Noninterest income 65,651 52,413

Noninterest expense 108,640 95,673

Net income before income taxes 108,599 96,304

Income tax expense 17,898 15,959

Net income $ 90,701 $ 80,345

PER COMMON SHARE DATA

Net income - basic $ 0.64 $ 0.59

Net income - diluted 0.64 0.59

Cash dividends declared 0.25 0.23

Book Value 11.14 8.58

Market Value $ 28.89 $ 30.79

Shares outstanding - end of period 142,035,396 135,809,224

Average outstanding shares - basic 142,045,779 135,572,859

Average outstanding shares - diluted 142,519,308 136,195,811

PERFORMANCE RATIOS

Return on average assets 1.86 % 2.08 %

Return on average equity 12.09 14.78

Return on average tangible equity 15.33 17.58

Net interest margin (tax equivalent) 3.84 3.99

Efficiency ratio 45.17 48.56

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Quarter Ended

2020 2019

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

Balance at beginning of period $ 60,440 $ 52,499 $ 51,889 $ 51,820 $ 51,585

Loans charged off (894) (2,227) (834) (767) (1,061)

Loan recoveries 701 318 494 386 696

Net recoveries (charge-offs) (193) (1,909) (340) (381) (365)

Provision for loan losses 8,700 9,850 950 450 600

Balance at end of period $ 68,947 $ 60,440 $ 52,499 $ 51,889 $ 51,820

Allowance for loan losses /

period-end loans 1.30 % 1.29 % 1.24 % 1.25 % 1.28 %

Allowance for loan losses /

nonperforming loans 174.83 153.16 212.02 200.75 190.66

Net charge-offs / average loans

(annualized) 0.01 0.16 0.03 0.04 0.04

SUMMARY OF LOAN CLASSIFICATION

Special Mention $ 63,489 $ 87,099 $ 63,371 $ 46,300 $ 51,490

Substandard 137,408 103,249 77,284 72,904 74,550

Doubtful - - - - -

Total classified loans $ 200,897 $ 190,348 $ 140,655 $ 119,204 $ 126,040

NONPERFORMING ASSETS

Nonaccrual loans $ 39,320 $ 39,226 $ 24,582 $ 25,717 $ 26,408

Accruing troubled debt restructured loans 25 26 26 27 471

Accruing loans 90 days past due 92 209 153 104 300

Total nonperforming loans 39,437 39,461 24,761 25,848 27,179

Foreclosed assets 287 983 1,009 1,364 681

Total nonperforming assets $ 39,724 $ 40,444 $ 25,770 $ 27,212 $ 27,860

As a % of loans and foreclosed assets 0.75 % 0.86 % 0.61 % 0.66 % 0.69 %

As a % of end of period total assets 0.38 0.42 0.31 0.34 0.35

OIL AND GAS PORTFOLIO INFORMATION *

Oil and gas loans $ 128,143 $ 117,223 $ 119,789 $ 122,908 $ 107,097

Oil and gas loans as a % of total loans 2.78 % 2.50 % 2.84 % 2.97 % 2.64 %

Classified oil and gas loans 28,366 22,032 7,041 7,953 3,438

Nonaccrual oil and gas loans 3,702 3,477 481 519 621

Net charge-offs for oil and gas loans 195 606 - - -

Allowance for oil and gas loans as a % of oil and gas loans 4.17 % 4.46 % 2.54 % 2.87 % 2.95 %

* Excluding PPP loans

RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *

Retail loans $ 216,244 $ 217,380

Restaurant loans 46,418 25,570

Hotel loans 51,957 46,690

Other hospitality loans 23,230 8,470

Travel loans 908 937

Total Retail/Restaurant/Hospitality loans $ 338,757 $ 299,047

Retail/Restaurant/ Hospitality loans as a % of total loans 7.34 % 6.39 %

Classifieds Retail/Restaurant/Hospitality loans $ 15,837 $ 5,680

Nonaccruals Retail/Restaurant/ Hospitality loans 5,752 867

Net Charge-offs for Retail/Restaurant/Hospitality loans 178 130

* Excluding PPP loans

CAPITAL RATIOS

Common equity Tier 1 capital ratio 20.78 % 19.55 % 20.06 % 20.05 % 20.04 %

Tier 1 capital ratio 20.78 19.55 20.06 20.05 20.04

Total capital ratio 22.03 20.65 21.13 21.14 21.16

Tier 1 leverage ratio 11.25 12.49 12.60 12.58 12.29

Tangible Common Equity ratio 12.00 13.09 12.43 12.94 12.31

Equity/Assets ratio 15.30 15.73 14.85 14.85 14.60

Quarter Ended

2020 2019

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

Trust fees $ 6,961 $ 7,437 $ 7,344 $ 7,051 $ 7,027

Service charges on deposits 4,318 5,915 5,861 5,629 5,374

ATM, interchange and credit card fees 8,049 7,400 7,943 7,728 7,352

Gain on sale and fees on mortgage loans 13,676 3,852 4,216 5,733 4,721

Net gain on sale of available-for-sale securities 1,512 2,062 5 52 676

Net gain (loss) on sale of foreclosed assets 52 1 81 71 53

Net gain (loss) on sale of assets (24) 116 78 235 6

Interest on loan recoveries 154 265 277 575 903

Other noninterest income 2,221 1,684 1,542 1,595 1,864

Total noninterest income $ 36,919 $ 28,732 $ 27,347 $ 28,669 $ 27,976

NONINTEREST EXPENSE

Salaries, commissions and employee benefits, excluding profit sharing $ 28,836 $ 28,670 $ 27,175 $ 27,030 $ 25,510

Cost related to termination of pension plan - - 1,700 - -

Profit sharing expense 1,978 972 2,766 1,520 1,884

Net occupancy expense 3,101 3,027 2,784 2,830 2,779

Equipment expense 2,010 2,075 2,043 2,225 2,331

FDIC insurance premiums 463 45 - 15 538

ATM, interchange and credit card expenses 2,610 2,985 2,419 2,627 2,427

Legal, tax and professional fees 2,931 2,921 2,353 2,274 2,302

Audit fees 739 411 233 341 455

Printing, stationery and supplies 533 566 465 480 502

Amortization of intangible assets 508 509 238 246 264

Advertising and public relations 1,011 1,195 1,791 1,745 1,630

Operational and other losses 728 576 626 507 480

Software amortization and expense 2,010 2,024 2,158 1,767 1,783

Other noninterest expense 5,863 9,342 5,187 5,303 5,419

Total noninterest expense $ 53,321 $ 55,318 $ 51,938 $ 48,910 $ 48,304

TAX EQUIVALENT YIELD ADJUSTMENT $ 2,902 $ 1,834 $ 1,732 $ 1,575 $ 1,664

Six Months Ended

June 30,

NONINTEREST INCOME 2020 2019

Trust fees $ 14,398 $ 14,006

Service charges on deposits 10,233 10,550

ATM, interchange and credit card fees 15,449 14,192

Gain on sale and fees on mortgage loans 17,528 8,195

Net gain (loss) on sale of available-for-sale securities 3,574 676

Net gain (loss) on sale of foreclosed assets 53 122

Net gain (loss) on sale of assets 92 6

Interest on loan recoveries 419 1,241

Other noninterest income 3,905 3,425

Total noninterest income $ 65,651 $ 52,413

NONINTEREST EXPENSE

Salaries, commissions and employee benefits, excluding profit sharing $ 57,506 $ 50,543

Loss from partial settlement of pension plan - 900

Profit sharing expense 2,950 3,375

Net occupancy expense 6,128 5,542

Equipment expense 4,085 4,784

FDIC insurance premiums 508 1,076

ATM, interchange and credit card expenses 5,595 4,810

Legal, tax and professional fees 5,852 4,457

Audit fees 1,150 872

Printing, stationery and supplies 1,099 868

Amortization of intangible assets 1,017 532

Advertising and public relations 2,206 3,278

Operational and other losses 1,304 746

Software amortization and expense 4,034 3,380

Other noninterest expense 15,206 10,510

Total noninterest expense $ 108,640 $ 95,673

TAX EQUIVALENT YIELD ADJUSTMENT $ 4,735 $ 3,484

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Three Months Ended Three Months Ended

June 30 2020 Mar. 31 2020

Average Tax Equivalent Yield / Average Tax Equivalent Yield /

Balance Interest Rate Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 840 $ 1 0.51 % $ 2,712 $ 10 1.50 %

Interest-bearing deposits in nonaffiliated banks 352,628 86 0.10 220,906 745 1.36

Taxable securities 2,399,364 14,030 2.34 2,263,329 14,655 2.59

Tax exempt securities 1,800,339 14,733 3.27 1,346,842 11,200 3.33

Loans 5,248,052 66,249 5.08 4,667,436 63,323 5.46

Total interest-earning assets 9,801,223 $ 95,099 3.90 % 8,501,225 $ 89,933 4.25 %

Noninterest-earning assets 663,595 692,432

Total assets $ 10,464,818 $ 9,193,657

Interest-bearing liabilities:

Deposits $ 5,135,772 $ 2,550 0.20 % $ 4,904,087 $ 6,680 0.55 %

Borrowings 877,076 412 0.19 460,605 517 0.45

Total interest-bearing liabilities 6,012,848 $ 2,962 0.20 % 5,364,692 $ 7,197 0.54 %

Noninterest-bearing 2,915,461 2,348,485liabilities

Shareholders' equity 1,536,509 1,480,480

Total liabilities and shareholders' equity $ 10,464,818 $ 9,193,657

Net interest income and margin (tax equivalent) $ 92,137 3.78 % $ 82,736 3.91 %

Three Months Ended Three Months Ended

Dec. 31, 2019 Sept. 30, 2019

Average Tax Equivalent Yield / Average Tax Equivalent Yield /

Balance Interest Rate Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 1,198 $ 6 2.03 % $ 3,006 $ 19 2.52 %

Interest-bearing deposits in nonaffiliated banks 54,841 218 1.58 61,465 363 2.34

Taxable securities 2,185,777 14,165 2.59 2,183,930 14,292 2.62

Tax exempt securities 1,243,487 10,695 3.44 1,132,279 10,075 3.56

Loans 4,185,716 58,771 5.57 4,094,235 57,417 5.56

Total interest-earning assets 7,671,019 $ 83,855 4.34 % 7,474,915 $ 82,166 4.36 %

Noninterest-earning assets 500,924 489,446

Total assets $ 8,171,943 $ 7,964,361

Interest-bearing liabilities:

Deposits $ 4,336,063 $ 6,052 0.55 % $ 4,156,850 $ 7,123 0.68 %

Borrowings 417,316 749 0.71 388,235 830 0.85

Total interest-bearing liabilities 4,753,379 $ 6,801 0.57 % 4,545,085 $ 7,953 0.69 %

Noninterest-bearing 2,207,508 2,237,462liabilities

Shareholders' equity 1,211,056 1,181,814

Total liabilities and shareholders' equity $ 8,171,943 $ 7,964,361

Net interest income and margin (tax equivalent) $ 77,054 3.99 % $ 74,213 3.94 %

Three Months Ended

June 30, 2019

Average Tax Equivalent Yield /

Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 5,436 $ 39 2.88 %

Interest-bearing deposits in nonaffiliated banks 107,381 628 2.35

Taxable securities 2,063,497 13,925 2.70

Tax exempt securities 1,169,889 10,615 3.63

Loans 4,043,055 56,033 5.56

Total interest-earning assets 7,389,258 $ 81,240 4.41 %

Noninterest-earning assets 487,931

Total assets $ 7,877,189

Interest-bearing liabilities:

Deposits $ 4,196,123 $ 7,286 0.70 %

Borrowings 378,389 675 0.72

Total interest-bearing liabilities 4,574,512 $ 7,961 0.70 %

Noninterest-bearing 2,180,361liabilities

Shareholders' equity 1,122,316

Total liabilities and shareholders' equity $ 7,877,189

Net interest income and margin (tax equivalent) $ 73,279 3.98 %

Six Months Ended Six Months Ended

June 30, 2020 June 30, 2019

Average Tax Equivalent Yield / Average Tax Equivalent Yield /

Balance Interest Rate Balance Interest Rate

Interest-earning assets:

Federal funds sold $ 1,776 $ 11 1.26 % $ 5,166 $ 73 2.84 %

Interest-bearing deposits in nonaffiliated banks 290,469 831 0.58 103,839 1,213 2.35

Taxable securities 2,331,347 28,685 2.46 1,994,563 27,213 2.73

Tax exempt securities 1,573,591 25,933 3.30 1,198,016 21,893 3.65

Loans 4,957,744 129,572 5.26 4,008,275 109,569 5.51

Total interest-earning assets 9,154,927 $ 185,032 4.06 % 7,309,859 $ 159,961 4.41 %

Noninterest-earning assets 674,311 498,094

Total assets $ 9,829,238 $ 7,807,953

Interest-bearing liabilities:

Deposits $ 5,019,929 $ 9,231 0.37 % $ 4,170,250 $ 13,947 0.67 %

Borrowings 668,840 928 0.28 393,432 1,401 0.72

Total interest-bearing liabilities 5,688,769 $ 10,159 0.36 % 4,563,682 $ 15,348 0.68 %

Noninterest-bearing 2,631,974 2,148,398liabilities

Shareholders' equity 1,508,495 1,095,873

Total liabilities and shareholders' equity $ 9,829,238 $ 7,807,953

Net interest income and margin (tax equivalent) $ 174,873 3.84 % $ 144,613 3.99 %

View original content: http://www.prnewswire.com/news-releases/first-financial-bankshares-announces-second-quarter-earnings-results-301099133.html

SOURCE First Financial Bankshares, Inc.