FIRST FINANCIAL BANKSHARES ANNOUNCES SECOND QUARTER 2023 EARNINGS

ABILENE, Texas, July 20, 2023 /PRNewswire/ — First Financial Bankshares, Inc. (the “Company,” “we,” “us” or “our”) (NASDAQ: FFIN) today reported earnings of $50.87 million for the second quarter of 2023 compared to earnings of $60.49 million for the same quarter a year ago. Basic and diluted earnings per share were $0.36 for the second quarter of 2023 compared with $0.42 for the second quarter of 2022.

As further described below, the results this quarter when compared to the same quarter a year ago included (i) a $2.92 million decrease in net interest income, (ii) a $3.15 million decrease in debit card fees, (iii) a $2.19 million decrease in mortgage revenues, (iv) a $1.60 million decrease in gains on sale of available for sale securities, and (v) a $1.17 million decrease in interest recoveries on charged off loans. Offsetting these decreases in income was a $1.34 million decrease in profit sharing expense.

“We are pleased with the strong, organic loan growth, our consistent deposit base and the continued growth in net new accounts which was over 4,000 accounts during the quarter. While we continue to experience rising interest expense costs, we have been able to mitigate some of the impact on the net interest margin by investing our bond portfolio cash flows into our higher yielding loan portfolio. In addition, our outlook for mortgage activity has improved with our new team of experienced mortgage lenders in the Bryan, College Station region and increased activity as home buyers seem to have become more accustomed to higher rates,” said F. Scott Dueser, Chairman, CEO and President of First Financial Bankshares, Inc. “Looking forward, we plan to continue to grow loans and deposits, maintain our strong capital position, manage interest rate risk and reduce expenses. To cut expenses, I have made the personal decision to forgo awards of stock options, restricted stock grants, performance stock grants and my annual bonus for 2023.  I am a firm believer that cost savings should start with the CEO. As always, we appreciate the continued support of our customers, shareholders, and associates,” Dueser added.

Net interest income for the second quarter of 2023 was $95.87 million compared to $98.78 million for the second quarter of 2022. The net interest margin, on a taxable equivalent basis, was 3.29 percent for the second quarter of 2023 compared to 3.34 percent for the first quarter of 2023 and 3.30 percent in the second quarter of 2022. Average interest-earning assets were $12.05 billion for the second quarter of 2023 compared to $12.49 billion for the same quarter a year ago.

The Company recorded a provision for credit losses of $5.57 million for the second quarter of 2023 compared to a provision for credit losses of $5.35 million for the second quarter of 2022. At June 30, 2023, the allowance for credit losses totaled $86.54 million, or 1.28 percent of loans held-for-investment (“loans” hereafter), compared to $71.93 million at June 30, 2022, or 1.22 percent of loans. Additionally, the reserve for unfunded commitments totaled $9.45 million at June 30, 2023 compared to $8.72 million at June 30, 2022.

For the second quarter of 2023, net charge-offs totaled $799 thousand compared to net recoveries of $916 thousand for the second quarter of 2022. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.43 percent at both June 30, 2023, and June 30, 2022. Classified loans totaled $175.14 million at June 30, 2023, compared to $152.67 million at June 30, 2022.

Noninterest income for the second quarter of 2023 was $29.95 million compared to $37.32 million for the second quarter of 2022, largely due to the following:

• Debit card fees decreased by $3.15 million for the second quarter of 2023 compared to the same quarter a year ago. The decrease was due to the impact of becoming subject to regulations that limit debit card interchange revenue (“Durbin Amendment”) effective at the start of third quarter last year. Accordingly, the second quarter of 2023 is the last quarter that will be impacted for comparability purposes to the prior year as a result of the Company becoming subject to the Durbin Amendment.
• Mortgage income declined to $3.53 million for the second quarter of 2023 compared to $5.73 million for the second quarter of 2022 due to lower overall origination volume and margins primarily because of the significant increase in mortgage interest rates.
• Available for sale securities were sold in the second quarter last year for gain on sales of $1.65 million. Securities sales activity in subsequent quarters in 2022 and in the second quarter of 2023 did not generate similar gains.
• Recoveries of interest on previously charged-off or nonaccrual loans totaled $475 thousand for the second quarter of 2023 compared to $1.65 million for the second quarter of 2022, which was a larger than normal amount.
• Service charges on deposits increased to $6.31 million for the second quarter of 2023 compared with $6.04 million for the second quarter of 2022, driven by the growth in net new accounts.

Noninterest expense for the second quarter of 2023 totaled $57.61 million compared to $58.33 million for the second quarter of 2022, as a result of the following:

• Salary, commissions, and employee benefit costs decreased to $31.77 million for the second quarter of 2023, compared to $33.15 million in the second quarter of 2022 primarily resulting from a decrease of $1.34 million in profit sharing expense and $428 thousand in mortgage incentives.
• Noninterest expenses, excluding salary related costs, increased $661 thousand for the second quarter of 2023 compared to the same period in 2022 largely due to an increase of $513 thousand in FDIC insurance fees.

The Company’s efficiency ratio was 44.74 percent for the second quarter of 2023 compared to 41.61 percent for the second quarter of 2022. The increase was driven by the decrease in non-interest income from the prior year.

As of June 30, 2023, consolidated total assets were $12.83 billion compared to $13.26 billion at June 30, 2022. Loans totaled $6.78 billion at June 30, 2023, compared with loans of $5.88 billion at June 30, 2022.  During the second quarter of 2023, loans grew $201.37 million, or 12.28 percent annualized, when compared to March 31, 2023 balances. Deposits totaled $10.81 billion at June 30, 2023, compared to $11.12 billion at June 30, 2022.  

Shareholders’ equity was $1.37 billion as of June 30, 2023, compared to $1.37 billion and $1.33 billion at March 31, 2023, and June 30, 2022, respectively, primarily as a result of changes in Other Comprehensive Income (“OCI”) due to interest rate changes over the past year. The unrealized loss on the securities portfolio, net of applicable tax, totaled $490.28 million at June 30, 2023, compared to unrealized losses of $458.25 million at March 31, 2023 and $400.51 million at June 30, 2022.

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 79 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, Lumberton, 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 https://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,” “project,” 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
		2023						2022
ASSETS		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Cash and due from banks	$	255,018		$	224,875		$	293,286		$	227,298		$	242,665
Interest-bearing demand deposits in banks		23,839			221,336			37,392			138,484			222,899
Investment securities		5,066,262			5,298,557			5,474,359			5,745,443			6,215,036
Loans, held-for-investment, excluding PPP Loans		6,777,429			6,576,060			6,441,699			6,255,286			5,876,281
PPP loans		141			155			169			202			2,301
Total loans, held-for-investment		6,777,570			6,576,215			6,441,868			6,255,488			5,878,582
Allowance for credit losses		(86,541)			(80,818)			(75,834)			(74,108)			(71,932)
Net loans, held-for-investment		6,691,029			6,495,397			6,366,034			6,181,380			5,806,650
Loans, held-for-sale		19,220			11,996			11,965			18,815			26,445
Premises and equipment, net		152,876			153,718			152,973			152,646			149,280
Goodwill		313,481			313,481			313,481			313,481			313,481
Other intangible assets		1,597			1,825			2,053			2,352			2,658
Other assets		302,115			286,801			322,523			330,445			281,098
Total assets	$	12,825,437		$	13,007,986		$	12,974,066		$	13,110,344		$	13,260,212
LIABILITIES AND SHAREHOLDERS’  EQUITY
Noninterest-bearing deposits	$	3,578,483		$	3,890,991		$	4,061,788		$	4,200,792		$	4,104,034
Interest-bearing deposits		7,229,077			7,045,427			6,943,719			6,941,326			7,018,949
Total deposits		10,807,560			10,936,418			11,005,507			11,142,118			11,122,983
Borrowings		587,656			632,927			642,507			774,581			768,364
Other liabilities		62,988			65,788			60,315			61,030			39,847
Shareholders’ equity		1,367,233			1,372,853			1,265,737			1,132,615			1,329,018
Total liabilities and shareholders’ equity	$	12,825,437		$	13,007,986		$	12,974,066		$	13,110,344		$	13,260,212
	Quarter Ended
		2023						2022
INCOME STATEMENTS		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Interest income	$	129,005		$	121,508		$	121,137		$	112,728		$	101,981
Interest expense		33,139			25,222			17,100			9,572			3,199
Net interest income		95,866			96,286			104,037			103,156			98,782
Provision for credit losses		5,573			2,781			4,075			3,221			5,350
Net interest income after provision for credit losses		90,293			93,505			99,962			99,935			93,432
Noninterest income		29,947			28,007			28,524			30,943			37,317
Noninterest expense		57,613			57,256			57,778			59,442			58,333
Net income before income taxes		62,627			64,256			70,708			71,436			72,416
Income tax expense		11,754			11,688			12,040			12,095			11,922
Net income	$	50,873		$	52,568		$	58,668		$	59,341		$	60,494
PER COMMON SHARE DATA
Net income – basic	$	0.36		$	0.37		$	0.41		$	0.42		$	0.42
Net income – diluted		0.36			0.37			0.41			0.41			0.42
Cash dividends declared		0.18			0.17			0.17			0.17			0.17
Book value		9.58			9.62			8.87			7.94			9.32
Tangible book value		7.37			7.41			6.66			5.73			7.10
Market value		28.49			31.90			34.40			41.83			39.27
Shares outstanding – end of period		142,741,196			142,703,531			142,657,871			142,628,163			142,586,601
Average outstanding shares – basic		142,700,805			142,665,646			142,619,632			142,524,500			142,682,251
Average outstanding shares – diluted		143,087,555			143,066,011			143,071,538			143,126,088			143,238,669
PERFORMANCE RATIOS
Return on average assets		1.58		%	1.65	%		1.76	%		1.76	%		1.82	%
Return on average equity		14.89			16.32			19.87			17.31			17.26
Return on average tangible equity		19.33			21.51			27.20			22.55			22.27
Net interest margin (tax equivalent)*		3.29			3.34			3.47			3.38			3.30
Efficiency ratio*		44.74			44.93			42.39			43.10			41.61
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

	Six Months Ended
	June 30,
INCOME STATEMENTS		2023			2022
Interest income	$	250,513		$	198,990
Interest expense		58,361			4,769
Net interest income		192,152			194,221
Provision for credit losses		8,354			10,132
Net interest income after provisions for credit losses		183,798			184,089
Noninterest income		57,954			72,198
Noninterest expense		114,869			117,558
Net income before income taxes		126,883			138,729
Income tax expense		23,442			22,263
Net income	$	103,441		$	116,466
PER COMMON SHARE DATA
Net income – basic	$	0.72		$	0.82
Net income – diluted		0.72			0.81
Cash dividends declared		0.35			0.32
Book value		9.58			9.32
Tangible book value		7.37			7.10
Market value	$	28.49		$	39.27
Shares outstanding – end of period		142,741,196			142,586,601
Average outstanding shares – basic		142,683,322			142,620,838
Average outstanding shares – diluted		143,027,503			143,273,391
PERFORMANCE RATIOS
Return on average assets		1.62	%		1.77	%
Return on average equity		15.58			15.24
Return on average tangible equity		20.38			19.18
Net interest margin (tax equivalent)*		3.32			3.26
Efficiency ratio*		44.84			42.86
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
	Quarter Ended
		2023						2022
ALLOWANCE FOR LOAN LOSSES		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Balance at beginning of period	$	80,818		$	75,834		$	74,108		$	71,932		$	66,913
Loans charged-off		(1,118)			(288)			(1,225)			(293)			(275)
Loan recoveries		319			565			320			1,409			1,191
Net recoveries (charge-offs)		(799)			277			(905)			1,116			916
Provision for loan losses		6,522			4,707			2,631			1,060			4,103
Balance at end of period	$	86,541		$	80,818		$	75,834		$	74,108		$	71,932
ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	10,397		$	12,323		$	10,879		$	8,718		$	7,471
Provision for unfunded commitments		(949)			(1,926)			1,444			2,161			1,247
Balance at end of period	$	9,448		$	10,397		$	12,323		$	10,879		$	8,718
Allowance for loan losses /
period-end loans held-for-investment		1.28		%	1.23	%		1.18	%		1.18	%		1.22	%
Allowance for loan losses /
nonperforming loans		296.13			334.06			311.75			301.02			281.90
Net charge-offs (recoveries) / average total loans
(annualized)		0.05			(0.02)			0.06			(0.07)			(0.06)
	Quarter Ended
		2023						2022
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Commercial:
C&I	$	1,021,722		$	954,531		$	917,148		$	871,133		$	837,627
PPP		141			155			169			202			2,301
Municipal		215,977			221,379			221,090			214,852			200,577
Total Commercial		1,237,840			1,176,065			1,138,407			1,086,187			1,040,505
Agricultural		82,032			77,017			76,947			76,937			90,420
Real Estate:
Construction & Development		915,221			921,190			959,426			938,051			928,644
Farm		335,644			307,706			306,322			268,139			250,028
Non-Owner Occupied CRE		811,347			737,117			732,089			717,738			636,432
Owner Occupied CRE		1,011,511			1,043,018			954,400			945,665			909,899
Residential		1,698,679			1,628,841			1,575,758			1,536,180			1,412,125
Total Real Estate		4,772,402			4,637,872			4,527,995			4,405,773			4,137,128
Consumer:
Auto		534,603			537,410			550,635			538,798			468,147
Non-Auto		150,693			147,851			147,884			147,793			142,382
Total Consumer		685,296			685,261			698,519			686,591			610,529
Total loans held-for-investment	$	6,777,570		$	6,576,215		$	6,441,868		$	6,255,488		$	5,878,582
SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	66,960		$	65,141		$	49,382		$	43,149		$	46,512
Substandard		108,179			91,915			101,316			100,568			106,156
Doubtful		–			–			–			–			–
Total classified loans	$	175,139		$	157,056		$	150,698		$	143,717		$	152,668
NONPERFORMING ASSETS
Nonaccrual loans	$	28,672		$	24,171		$	24,325		$	24,604		$	25,495
Accruing loans 90 days past due		552			22			–			15			22
Total nonperforming loans		29,224			24,193			24,325			24,619			25,517
Foreclosed assets		25			196			–			–			–
Total nonperforming assets	$	29,249		$	24,389		$	24,325		$	24,619		$	25,517
As a % of loans held-for-investment and foreclosed assets		0.43		%	0.37	%		0.38	%		0.39	%		0.43	%
As a % of end of period total assets		0.23			0.19			0.19			0.19			0.19

 

	Quarter Ended
		2023						2022
CAPITAL RATIOS		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Common equity Tier 1 capital ratio		18.48		%	18.68	%		18.22	%		18.03	%		18.50	%
Tier 1 capital ratio		18.48			18.68			18.22			18.03			18.50
Total capital ratio		19.62			19.79			19.29			19.07			19.54
Tier 1 leverage ratio		11.81			11.53			10.96			10.79			10.65
Tangible common equity ratio		8.41			8.33			7.51			6.38			7.83
Equity/Assets ratio		10.66			10.55			9.76			8.64			10.02
	Quarter Ended
		2023						2022
NONINTEREST INCOME		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Trust fees	$	9,883		$	9,845		$	10,122		$	10,314		$	9,742
Service charges on deposits		6,310			6,036			6,397			6,399			6,038
Debit card fees		6,720			4,936			5,899			5,587			9,868
Credit card fees		711			609			632			651			700
Gain on sale and fees on mortgage loans		3,534			2,974			2,904			4,070			5,728
Net gain on sale of available-for-sale securities		46			12			131			334			1,648
Net gain (loss) on sale of foreclosed assets		(1)			34			–			349			18
Net gain (loss) on sale of assets		–			930			(2)			526			6
Interest on loan recoveries		475			346			244			664			1,649
Other noninterest income		2,269			2,285			2,197			2,049			1,920
Total noninterest income	$	29,947		$	28,007		$	28,524		$	30,943		$	37,317
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	31,796		$	31,431		$	32,391		$	33,129		$	31,840
Profit sharing expense		(30)			30			565			763			1,307
Net occupancy expense		3,423			3,430			3,350			3,440			3,292
Equipment expense		2,198			2,127			2,053			2,396			2,346
FDIC insurance premiums		1,417			1,654			1,021			917			904
Debit card expense		3,221			3,199			3,054			3,013			3,200
Legal, tax and professional fees		2,847			2,687			2,814			2,604			2,513
Audit fees		563			540			451			451			450
Printing, stationery and supplies		740			710			473			600			501
Amortization of intangible assets		228			228			299			306			320
Advertising, meals and public relations		1,789			1,475			1,646			1,692			1,554
Operational and other losses		856			931			982			869			782
Software amortization and expense		2,519			2,311			2,420			2,564			2,522
Other noninterest expense		6,046			6,503			6,259			6,698			6,802
Total noninterest expense	$	57,613		$	57,256		$	57,778		$	59,442		$	58,333
TAX EQUIVALENT YIELD ADJUSTMENT *	$	2,950		$	3,131		$	3,751		$	3,807		$	4,083
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

	Six Months Ended
	June 30,
NONINTEREST INCOME		2023			2022
Trust fees	$	19,728		$	19,559
Service charges on deposits		12,346			11,744
Debit card fees		11,656			18,795
Credit card fees		1,320			1,301
Gain on sale and fees on mortgage loans		6,508			12,061
Net gain on sale of available-for-sale securities		58			1,679
Net gain on sale of foreclosed assets		33			1,102
Net gain (loss) on sale of assets		930			(4)
Interest on loan recoveries		821			1,932
Other noninterest income		4,554			4,029
Total noninterest income	$	57,954		$	72,198
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	63,227		$	64,380
Profit sharing expense		–			2,905
Net occupancy expense		6,853			6,517
Equipment expense		4,325			4,603
FDIC insurance premiums		3,071			1,773
Debit card expense		6,420			6,164
Legal, tax and professional fees		5,534			5,470
Audit fees		1,103			901
Printing, stationery and supplies		1,450			1,041
Amortization of intangible assets		456			640
Advertising, meals and public relations		3,264			3,047
Operational and other losses		1,787			1,378
Software amortization and expense		4,830			4,979
Other noninterest expense		12,549			13,760
Total noninterest expense	$	114,869		$	117,558
TAX EQUIVALENT YIELD ADJUSTMENT *	$	6,080		$	7,866
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
	Three Months Ended												Three Months Ended
	June 30, 2023												Mar. 31, 2023
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
		Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	2,242		$	30			5.45	%				$	2,507		$	32			5.12	%
Interest-bearing demand deposits in nonaffiliated banks		119,168			1,553			5.23						143,542			1,618			4.57
Taxable securities		3,589,381			20,032			2.23						3,672,257			20,782			2.26
Tax-exempt securities		1,653,418			11,799			2.85						1,750,533			12,743			2.91
Loans		6,683,276			98,541			5.91						6,500,332			89,464			5.58
Total interest-earning assets		12,047,485		$	131,955			4.39	%					12,069,171		$	124,639			4.19	%
Noninterest-earning assets		842,284												863,342
Total assets	$	12,889,769											$	12,932,513
Interest-bearing liabilities:
Deposits	$	7,037,677		$	27,629			1.57	%				$	7,080,518		$	21,812			1.25	%
Borrowings		715,071			5,510			3.09						625,137			3,410			2.21
Total interest-bearing liabilities		7,752,748		$	33,139			1.71	%					7,705,655		$	25,222			1.33	%
Noninterest-bearing deposits		3,704,143												3,860,472
Other noninterest-bearing liabilities		62,227												60,028
Shareholders’ equity		1,370,651												1,306,358
Total liabilities and shareholders’ equity	$	12,889,769											$	12,932,513
Net interest income and margin (tax equivalent)				$	98,816			3.29	%							$	99,417			3.34	%
	Three Months Ended												Three Months Ended
	Dec. 31, 2022												Sept. 30, 2022
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
		Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	3,165		$	36			4.57	%				$	3,107		$	19			2.49	%
Interest-bearing demand deposits in nonaffiliated banks		160,200			1,579			3.91						248,929			1,413			2.25
Taxable securities		3,761,206			21,152			2.25						4,039,107			20,799			2.06
Tax-exempt securities		2,001,185			15,740			3.15						2,164,829			16,423			3.03
Loans		6,391,703			86,381			5.36						6,082,649			77,880			5.08
Total interest-earning assets		12,317,459		$	124,888			4.02	%					12,538,621		$	116,534			3.69	%
Noninterest-earning assets		891,972												833,980
Total assets	$	13,209,431											$	13,372,601
Interest-bearing liabilities:
Deposits	$	6,871,315		$	13,123			0.76	%				$	7,004,478		$	8,787			0.50	%
Borrowings		927,250			3,977			1.70						768,096			784			0.40
Total interest-bearing liabilities		7,798,565		$	17,100			0.87	%					7,772,574		$	9,571			0.49	%
Noninterest-bearing deposits		4,179,494												4,178,675
Other noninterest-bearing liabilities		60,085												61,320
Shareholders’ equity		1,171,287												1,360,032
Total liabilities and shareholders’ equity	$	13,209,431											$	13,372,601
Net interest income and margin (tax equivalent)*				$	107,788			3.47	%							$	106,963			3.38	%

 

	Three Months Ended
	June 30, 2022
		Average			Tax Equivalent			Yield /
		Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	1,466		$	5			1.45	%
Interest-bearing demand deposits in nonaffiliated banks		288,784			547			0.76
Taxable securities		4,101,751			19,151			1.87
Tax-exempt securities		2,376,324			17,873			3.01
Loans		5,720,804			68,488			4.80
Total interest-earning assets		12,489,129		$	106,064			3.41	%
Noninterest-earning assets		825,711
Total assets	$	13,314,840
Interest-bearing liabilities:
Deposits	$	7,049,041		$	2,967			0.17	%
Borrowings		730,477			232			0.13
Total interest-bearing liabilities		7,779,518		$	3,199			0.16	%
Noninterest-bearing deposits		4,064,207
Other noninterest-bearing liabilities		65,475
Shareholders’ equity		1,405,640
Total liabilities and shareholders’ equity	$	13,314,840
Net interest income and margin (tax equivalent)*				$	102,865			3.30	%

 

	Six Months Ended												Six Months Ended
	June 30, 2023												June 30, 2022
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
		Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	2,374		$	62			5.28	%				$	1,241		$	7			1.07	%
Interest-bearing deposits in nonaffiliated banks		131,288			3,172			4.87						230,700			641			0.56
Taxable securities		3,630,591			40,815			2.25						4,166,490			36,974			1.77
Tax exempt securities		1,701,707			24,542			2.88						2,493,523			35,980			2.89
Loans		6,592,310			188,002			5.75						5,604,815			133,254			4.79
Total interest-earning assets		12,058,270		$	256,593			4.29	%					12,496,769		$	206,856			3.34	%
Noninterest-earning assets		852,753												785,486
Total assets	$	12,911,023											$	13,282,255
Interest-bearing liabilities:
Deposits	$	7,058,979		$	49,441			1.41	%				$	6,973,967		$	4,336			0.13	%
Borrowings		670,352			8,920			2.68						755,755			433			0.12
Total interest-bearing liabilities		7,729,331		$	58,361			1.52	%					7,729,722		$	4,769			0.12	%
Noninterest-bearing deposits		3,781,876												3,946,483
Other noninterest-bearing liabilities		61,134												65,239
Shareholders’ equity		1,338,682												1,540,811
Total liabilities and shareholders’ equity	$	12,911,023											$	13,282,255
Net interest income and margin (tax equivalent)*				$	198,232			3.32	%							$	202,087			3.26	%
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

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SOURCE First Financial Bankshares, Inc.