Enhanced Investments - Financial Portal

Published: 2021-10-21 00:00:00 ET

HTTP/1.1 200 OK HTTP/1.1 200 OK X-Crawlera-Slave: 107.173.112.3:3128 X-Crawlera-Version: 1.60.1 accept-ranges: bytes content-type: text/html last-modified: Thu, 21 Oct 2021 21:25:37 GMT server: AmazonS3 x-amz-id-2: KrxSSbQZHZds0rsFp0VEla3fmAsAvw7r4zpJn9AQexkZ1gxrRqVssVttEGcv8CKefn1XhoqiFEQ= x-amz-meta-mode: 33188 x-amz-meta-s3cmd-attrs: uid:504/gname:fitrprnt/uname:fitrprnt/gid:504/mode:33184/mtime:1634851534/atime:1634851534/md5:a8273a45ab8e78bafc8a100c12b94a76/ctime:1634851535 x-amz-replication-status: COMPLETED x-amz-request-id: EVFCZYJ3NSKA3597 x-amz-version-id: i1fixOd7iUlpBG2I4sm5M_fjgoXch2TF x-content-type-options: nosniff x-frame-options: SAMEORIGIN x-xss-protection: 1; mode=block akamai-x-true-ttl: 60, -1 x-akamai-transformed: 9 20897 0 pmb=mTOE,2 expires: Fri, 07 Apr 2023 03:33:57 GMT cache-control: max-age=0, no-cache, no-store pragma: no-cache date: Fri, 07 Apr 2023 03:33:57 GMT vary: Accept-Encoding strict-transport-security: max-age=31536000 ; includeSubDomains ; preload set-cookie: ak_bmsc=9AA02D85837FEBAF674DF97E74BB0B38~000000000000000000000000000000~YAAQFO/dF/D041aHAQAAvSvHWRN8IeGvtLBToA/inpeavE41ivy0KgDghmFvycMtlyz3VWmMAeLefAA3OhqsA2+0URpmkvf4kNoa0kB6qsdB4SPp9QnCK2QOqD6y4Ex969IBPIY4BX37UoM+rnvMU9t5sUjR9LkLEtFGxfC/5Ejk2jcOk1j/RjbkUNJhDQGLSqr0wTG0tmDE44CjJ4M7n5htV9d66YsFglIfqaGQJVFytxEO34FKUWcHFPn3OWt1DhoTHVaBJUbOq/JKYlyyVqNtIBgHDnSP8/thGP74dyiLg+f97/+hRF8ua4XN7UaLdQ7DbZJgS3W+MoBHwrG+9vb6Ai3+AeQxBGHqWR74gStTujQZZM/7wkQmse+VQpQsjDECgZ/nMQ==; Domain=.sec.gov; Path=/; Expires=Fri, 07 Apr 2023 05:33:57 GMT; Max-Age=7200; HttpOnly set-cookie: bm_mi=793C2375ACB0CBB55A8CE2CEE7A7843A~YAAQFO/dF/H041aHAQAAvSvHWRPVOrbLmRg/BSbgxuC8dB+DByEB8FFI/TIeXDOHvJJb5tcFhwp09PF2dyP9w+sBS7Es/F7Sc/U/A9iK9jlkQb2CyQwwYstguseIekH4ftqaMLUSV6heGKcUx1XRKIzXfb+/tIuPL3nvQ3TYblmk6uKZJJCxOgsxEvEfR0hTslyU58ffip5a4E31YVCM2e5jLSAfRrLEstifUGh/uYdav+RfncfaFVXEWFaln3hc5l4Zcnmmc5LYUeTs/SaqTM4yglIH5rthPJphyrTU8l44x6huuE5/1WDpV5/Pe+8OKU/MZWcQ7ao4025avhgFO0PBJ4a1BazhvLGNWl44eqECfseQViS0MJDMIh6URlC33bjBzeYWLn0s~1; Domain=.sec.gov; Path=/; Expires=Fri, 07 Apr 2023 03:33:57 GMT; Max-Age=0; Secure Transfer-Encoding: chunked Proxy-Connection: close Connection: close EX-99.1 2 d231145dex991.htm EX-99.1 EX-99.1

Exhibit 99.1


For immediate release				For More Information:
				James R. Gordon, EVP & Chief Financial Officer
				325.627.7155

FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2021 EARNINGS

ABILENE, Texas, October 21, 2021—First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the third quarter of 2021 of $58.93 million compared to earnings of $52.86 million for the same quarter a year ago. Basic and diluted earnings per share were $0.41 for the third quarter of 2021 compared with $0.37 for the same quarter a year ago.

“During the third quarter, we produced strong operating results driven by organic growth reflecting the increasing strength of our markets. The continued recovery of the Texas economy produced net loan growth, excluding PPP loans, of $162.95 million for the quarter and our overall credit metrics continued to improve. Additionally, customer deposits grew $111.42 million during the quarter driven by net deposit account openings of 13,774 year-to-date. We are focused on closing out 2021 with strong growth as we serve our communities across Texas. 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 third quarter of 2021 was $95.78 million compared to $89.21 million for the third quarter of 2020. Average-earning assets increased to $11.58 billion for the third quarter of 2021 compared to $9.80 billion a year ago. The net interest margin, on a taxable equivalent basis, was 3.41 percent for the third quarter of 2021 compared to 3.75 percent in the third 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 September 30, 2021
	Number of Loans		Amount		Number of Loans		Period-End Amount, Net		Unamortized Fees		Recognized Fees During the Quarter Ended September 30, 2021
PPP Round 1		6,530	$	703,450		51	$	4,324	$	63	$	1,044
PPP Round 2		3,179		267,423		1,298		135,010		6,025		6,590

PPP Total		9,709	$	970,873		1,349	$	139,334	$	6,088	$	7,634

PPP loan balances declined $181.06 million from June 30, 2021 and accounted for $229.81 million in average balances for the third quarter of 2021 compared to $482.00 in the second 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 no provision for credit losses for the third quarter of 2021 compared to a provision for credit losses of $9.00 million for the third quarter of 2020. The Company’s allowance for loan losses for the third quarter of 2021 reflected the continued improvement in overall asset quality offset by loan growth.

For the third quarter of 2021, net recoveries totaled $1.23 million compared to net charge-offs of $409 thousand for the third quarter of 2020. At September 30, 2021, the allowance for credit losses totaled $63.37 million, or 1.20 percent of loans held-for-investment (“loans” hereafter), or 1.23 percent of loans, excluding PPP loans, compared to $76.04 million at September 30, 2020, or 1.44 percent of loans, or 1.66 percent of loans, excluding PPP loans. Additionally, the reserve for unfunded commitments totaled $6.75 million at September 30, 2021 compared to $2.31 million at September 30, 2020. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.48 percent at September 30, 2021, compared with 0.81 percent at September 30, 2020. Classified loans totaled $165.77 million at September 30, 2021, compared to $202.04 million at September 30, 2020.

Noninterest income in the third quarter of 2021 was $37.73 million compared to $38.58 million in the third quarter of 2020, as a result of the following:

•

Trust fees increased to $9.48 million in the third quarter of 2021 from $7.46 million in the third quarter of 2020. The fair value of trust assets managed increased to $8.08 billion at September 30, 2021 compared to $6.95 billion at September 30, 2020.

•

Service charges on deposits increased to $5.67 million in the third quarter of 2021 compared with $5.01 million in the third quarter of 2020.

•

ATM, interchange and credit card fees increased to $9.79 million in the third quarter of 2021 from $8.64 million in the third quarter of 2020, driven by continued growth in the number of debit cards issued and overall customer utilization.

•

Mortgage income was $8.79 million in the third quarter of 2021 compared to $15.23 million in the third quarter of 2020 due to lower overall origination volumes.

Loan recoveries during the third quarter of 2021 totaled $1.75 million compared to $202 thousand in the third quarter of 2020.

Noninterest expense for the third quarter of 2021 totaled $62.94 million compared to $55.59 million in the third quarter of 2020, as a result of the following:

•

Salary, commissions and employee benefit costs totaled $37.09 million for the third quarter of 2021, compared to $33.65 million in the third quarter of 2020. The increase over the prior year was primarily driven by increases effective March 1, 2021 from annual merit-based pay and increases in profit sharing and incentive compensation accruals during the third quarter of 2021.

The Company’s efficiency ratio was 45.88 percent for the third quarter of 2021 compared to 42.45 percent for the third quarter of 2020.

As of September 30, 2021, consolidated assets for the Company totaled $12.54 billion compared to $10.57 billion at September 30, 2020. Loans totaled $5.29 billion at September 30, 2021, compared with loans of $5.29 billion at September 30, 2020. Excluding PPP loans, loans have grown $557.21 million or 12.14 percent, from September 30, 2020 balances. Deposits totaled $9.89 billion at September 30, 2021, compared to $8.29 billion at September 30, 2020, driven by continued organic growth. Shareholders’ equity rose to $1.73 billion as of September 30, 2021, compared to $1.62 billion at September 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	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Cash and due from banks	$	201,901		$	190,061		$	190,350		$	211,113		$	175,088
Interest-bearing deposits in banks		359,241			654,531			893,221			517,971			58,933
Investment securities		6,119,984			5,578,048			5,109,631			4,393,029			4,431,280
Loans, held-for-investment, excluding PPP Loans		5,147,160			4,984,210			4,790,752			4,687,370			4,589,948
PPP loans		139,334			320,392			531,810			483,663			703,731

Total loans, held-for-investment		5,286,494			5,304,602			5,322,562			5,171,033			5,293,679
Allowance for loan losses		(63,370	)		(62,138	)		(62,974	)		(66,534	)		(76,038	)

Net loans, held-for-investment		5,223,124			5,242,464			5,259,588			5,104,499			5,217,641
Loans, held-for-sale		47,721			61,802			65,405			83,969			101,055
Premises and equipment, net		147,516			147,655			142,415			142,269			141,002
Goodwill		313,481			313,481			313,481			313,481			313,481
Other intangible assets		3,689			4,087			4,499			4,911			5,394
Other assets		126,601			136,954			124,297			133,258			123,778

Total assets	$	12,543,258		$	12,329,083		$	12,102,887		$	10,904,500		$	10,567,652

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	3,574,405		$	3,427,038		$	3,350,145		$	2,982,697		$	2,950,407
Interest-bearing deposits		6,318,712			6,354,656			6,063,302			5,693,120			5,344,481

Total deposits		9,893,117			9,781,694			9,413,447			8,675,817			8,294,888
Borrowings		648,679			549,969			548,604			430,093			503,163
Trade date payable		174,236			189,838			381,871			14,641			53,730
Other liabilities		93,491			87,213			93,537			105,759			96,370
Shareholders’ equity		1,733,735			1,720,369			1,665,428			1,678,190			1,619,501

Total liabilities and shareholders’ equity	$	12,543,258		$	12,329,083		$	12,102,887		$	10,904,500		$	10,567,652


	Quarter Ended
	2021									2020
INCOME STATEMENTS	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Interest income	$	97,198		$	92,602		$	90,610		$	92,457		$	91,373
Interest expense		1,416			1,653			1,786			1,920			2,163

Net interest income		95,782			90,949			88,824			90,537			89,210
Provision for credit losses		—			(1,206	)		(1,997	)		(8,033	)		9,000

Net interest income after provisions for credit losses		95,782			92,155			90,821			98,570			80,210
Noninterest income		37,726			34,673			34,874			35,709			38,575
Noninterest expense		62,939			59,374			57,723			63,705			55,593

Net income before income taxes		70,569			67,454			67,972			70,574			63,192
Income tax expense		11,641			11,075			11,054			12,099			10,335

Net income	$	58,928		$	56,379		$	56,918		$	58,475		$	52,857

PER COMMON SHARE DATA
Net income - basic	$	0.41		$	0.40		$	0.40		$	0.41		$	0.37
Net income - diluted		0.41			0.39			0.40			0.41			0.37
Cash dividends declared		0.15			0.15			0.13			0.13			0.13
Book value		12.17			12.08			11.70			11.80			11.40
Tangible book value		9.94			9.85			9.47			9.57			9.15
Market value		45.95			49.13			46.73			36.17			27.91
Shares outstanding - end of period		142,467,687			142,359,774			142,285,611			142,161,834			142,121,595
Average outstanding shares - basic		142,334,449			142,245,555			142,146,275			142,057,705			141,980,707
Average outstanding shares - diluted		143,218,920			143,164,611			143,002,658			142,644,088			142,529,242
PERFORMANCE RATIOS
Return on average assets		1.90	%		1.89	%		2.05	%		2.19	%		2.01	%
Return on average equity		13.43			13.38			13.83			14.27			13.14
Return on average tangible equity		16.43			16.48			17.09			17.74			16.41
Net interest margin (tax equivalent)		3.41			3.36			3.55			3.75			3.75
Efficiency ratio		45.88			45.94			45.36			49.15			42.45


	Nine Months Ended Sept. 30,
INCOME STATEMENTS	2021			2020
Interest income	$	280,410		$	271,671
Interest expense		4,855			12,323

Net interest income		275,555			259,348
Provision for credit losses		(3,203	)		27,550

Net interest income after provisions for credit losses		278,758			231,798
Noninterest income		107,273			104,226
Noninterest expense		180,036			164,233

Net income before income taxes		205,995			171,791
Income tax expense		33,770			28,233

Net income	$	172,225		$	143,558

PER COMMON SHARE DATA
Net income - basic	$	1.21		$	1.01
Net income - diluted		1.20			1.01
Cash dividends declared		0.43			0.38
Book Value		12.17			11.40
Tangible book value		9.94			9.15
Market Value		45.95			27.91
Shares outstanding - end of period		142,467,687			142,121,595
Average outstanding shares - basic		142,242,783			142,023,930
Average outstanding shares - diluted		143,183,792			142,519,448
PERFORMANCE RATIOS
Return on average assets		1.94	%		1.91	%
Return on average equity		13.55			12.46
Return on average tangible equity		16.66			15.71
Net interest margin (tax equivalent)		3.43			3.81
Efficiency ratio		45.73			44.21

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Quarter Ended
	2021									2020
ALLOWANCE FOR LOAN LOSSES	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Balance at beginning of period	$	62,138		$	62,974		$	66,534		$	76,038		$	68,947
Loans charged off		(1,475	)		(392	)		(574	)		(1,339	)		(853	)
Loan recoveries		2,707			595			443			778			444

Net recoveries (charge-offs)		1,232			203			(131	)		(561	)		(409	)
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

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

ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	6,751		$	6,918		$	5,486		$	2,309		$	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		$	6,751		$	6,918		$	5,486		$	2,309

Allowance for loan losses / period-end loans held-for-investment		1.20	%		1.17	%		1.18	%		1.29	%		1.44	%
Allowance for loan losses / nonperforming loans		250.92			208.45			160.00			155.61			177.99
Net charge-offs (recoveries) / average total loans (annualized)		(0.09	)		(0.02	)		0.01			0.04			0.03

	Quarter Ended
	2021									2020
COMPOSITION OF LOANS HELD-FOR-INVESTMENT	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Commercial:
C&I	$	680,263		$	662,711		$	646,316		$	647,719$			N/A
PPP		139,334			320,392			531,810			483,663			703,731
Municipal		165,847			179,356			176,949			181,325			N/A

Total Commercial		985,444			1,162,459			1,355,075			1,312,707			1,488,345
Agriculture		98,947			95,212			90,366			94,864			93,972
Real Estate:
Construction & Development		656,530			550,928			587,928			553,959			N/A
Farm		203,064			185,288			162,046			152,237			N/A
Non-Owner Occupied CRE		674,958			673,608			650,144			617,686			N/A
Owner Occupied CRE		824,231			820,055			759,906			746,974			N/A
Residential		1,328,798			1,328,474			1,254,727			1,248,409			N/A

Total Real Estate		3,687,581			3,558,353			3,414,751			3,319,265			3,287,605
Consumer:
Auto		394,072			383,764			370,027			353,595			N/A
Non-Auto		120,450			104,814			92,343			90,602			N/A

Total Consumer		514,522			488,578			462,370			444,197			423,757

Total loans held-for-investment	$	5,286,494		$	5,304,602		$	5,322,562		$	5,171,033		$	5,293,679

SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	53,620		$	54,497		$	61,866		$	56,585		$	66,033
Substandard		112,151			120,497			128,550			140,866			136,010
Doubtful		—			—			—			—			—

Total classified loans	$	165,771		$	174,994		$	190,416		$	197,451		$	202,043

NONPERFORMING ASSETS
Nonaccrual loans	$	25,210		$	29,786		$	39,333		$	42,619		$	42,673
Accruing troubled debt restructured loans		22			23			23			24			25
Accruing loans 90 days past due		23			—			2			113			23

Total nonperforming loans		25,255			29,809			39,358			42,756			42,721
Foreclosed assets		28			305			300			142			331

Total nonperforming assets	$	25,283		$	30,114		$	39,658		$	42,898		$	43,052

As a % of loans held-for-investment and foreclosed assets		0.48	%		0.57	%		0.75	%		0.83	%		0.81	%
As a % of end of period total assets		0.20			0.24			0.33			0.39			0.41
OIL AND GAS PORTFOLIO INFORMATION *
Oil and gas loans	$	96,469		$	103,166		$	105,261		$	106,237		$	118,567
Oil and gas loans as a % of total loans held-for-investment		1.87	%		2.07	%		2.20	%		2.27	%		2.58	%
Classified oil and gas loans	$	10,831		$	13,090		$	10,079		$	13,298		$	26,823
Nonaccrual oil and gas loans		3,058			3,986			4,759			4,774			6,800
Net charge-offs (recoveries) on oil and gas loans		(71	)		59			40			24			—
* Excluding PPP loans
RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *
Retail loans	$	348,797		$	326,409		$	282,310		$	216,244		$	229,386
Restaurant loans		59,031			56,997			51,772			48,618			39,523
Hotel loans		60,733			71,008			71,435			71,716			63,273
Other hospitality loans		27,369			27,929			24,014			21,970			26,041
Travel loans		593			790			664			780			801

Total retail/restaurant/hospitality loans	$	496,523		$	483,133		$	430,195		$	359,328		$	359,024

Retail/Restaurant/Hospitality loans as a % of total loans held-for-investment		9.65	%		9.69	%		8.98	%		7.67	%		7.82	%
Classified Retail/Restaurant/Hospitality loans	$	34,341		$	43,635		$	45,214		$	31,192		$	28,171
Nonaccrual Retail/Restaurant/Hospitality loans		1,995			5,600			6,575			5,975			5,689
Net charge-offs (recoveries) on Retail/Restaurant/Hospitality loans		(506	)		—			—			561			26
* Excluding PPP loans
CAPITAL RATIOS
Common equity Tier 1 capital ratio		19.71	%		20.04	%		20.32	%		20.79	%		20.56	%
Tier 1 capital ratio		19.71			20.04			20.32			20.79			20.56
Total capital ratio		20.76			21.12			21.47			22.03			21.82
Tier 1 leverage ratio		11.19			11.10			11.55			11.86			11.65
Tangible common equity ratio		11.90			11.75			12.35			12.71			12.61
Equity/Assets ratio		13.82			13.95			13.76			15.39			15.33


	Quarter Ended
	2021							2020
NONINTEREST INCOME	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
Trust fees	$	9,484		$	8,692	$	8,299	$	7,672	$	7,461
Service charges on deposits		5,673			4,928		4,793		5,330		5,009
ATM, interchange and credit card fees		9,793			9,853		8,677		8,376		8,644
Gain on sale and fees on mortgage loans		8,788			8,291		9,894		11,116		15,228
Net gain on sale of available-for-sale securities		1			5		808		23		36
Net gain on sale of foreclosed assets		27			1		55		87		19
Net gain (loss) on sale of assets		(6	)		74		145		22		(2	)
Interest on loan recoveries		1,746			704		382		235		202
Other noninterest income		2,220			2,125		1,821		2,848		1,978

Total noninterest income	$	37,726		$	34,673	$	34,874	$	35,709	$	38,575

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	34,460		$	32,936	$	32,636	$	34,773	$	32,104
Profit sharing expense		2,630			2,110		2,295		6,245		1,545
Net occupancy expense		3,288			3,241		3,147		3,067		3,193
Equipment expense		2,450			2,177		2,164		2,154		2,157
FDIC insurance premiums		815			766		701		663		587
ATM, interchange and credit card expenses		2,935			3,039		2,772		2,811		2,829
Legal, tax and professional fees		2,893			3,352		2,726		2,302		2,615
Audit fees		466			430		440		407		526
Printing, stationery and supplies		432			489		325		449		615
Amortization of intangible assets		398			412		412		483		490
Advertising and public relations		1,746			1,392		1,388		1,600		797
Operational and other losses		1,087			534		287		537		621
Software amortization and expense		2,855			2,829		2,619		2,563		2,265
Other noninterest expense		6,484			5,667		5,811		5,651		5,249

Total noninterest expense	$	62,939		$	59,374	$	57,723	$	63,705	$	55,593

TAX EQUIVALENT YIELD ADJUSTMENT	$	3,670		$	3,633	$	3,547	$	3,355	$	3,170


	Nine Months Ended
	Sept. 30,
NONINTEREST INCOME		2021			2020

Trust fees	$	26,475		$	21,859
Service charges on deposits		15,394			15,242
ATM, interchange and credit card fees		28,323			24,093
Gain on sale and fees on mortgage loans		26,973			32,756
Net gain (loss) on sale of available-for-sale securities		814			3,610
Net gain (loss) on sale of foreclosed assets		83			72
Net gain (loss) on sale of assets		213			90
Interest on loan recoveries		2,832			621
Other noninterest income		6,166			5,883

Total noninterest income	$	107,273		$	104,226

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	100,032		$	89,610
Profit sharing expense		7,035			4,495
Net occupancy expense		9,676			9,321
Equipment expense		6,791			6,242
FDIC insurance premiums		2,282			1,095
ATM, interchange and credit card expenses		8,746			8,424
Legal, tax and professional fees		8,971			8,467
Audit fees		1,336			1,676
Printing, stationery and supplies		1,246			1,714
Amortization of intangible assets		1,222			1,507
Advertising and public relations		4,526			3,003
Operational and other losses		1,908			1,925
Software amortization and expense		8,303			6,299
Other noninterest expense		17,962			20,455

Total noninterest expense	$	180,036		$	164,233

TAX EQUIVALENT YIELD ADJUSTMENT	$	10,850		$	7,905

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Three Months Ended							Three Months Ended
	Sept. 30, 2021							June 30, 2021
	Average		Tax Equivalent		Yield /			Average		Tax Equivalent		Yield /
	Balance		Interest		Rate			Balance		Interest		Rate
Interest-earning assets:
Federal funds sold	$	1,554	$	2		0.51	%	$	3,049	$	4		0.54	%
Interest-bearing deposits in nonaffiliated banks		612,551		236		0.15			796,835		211		0.11
Taxable securities		3,081,215		12,122		1.57			2,656,211		11,449		1.72
Tax exempt securities		2,542,606		17,701		2.78			2,461,924		17,410		2.83
Loans		5,337,807		70,807		5.26			5,383,781		67,161		5.00

Total interest-earning assets		11,575,733	$	100,868		3.46	%		11,301,800	$	96,235		3.42	%
Noninterest-earning assets		705,099							692,282

Total assets	$	12,280,832						$	11,994,082

Interest-bearing liabilities:
Deposits	$	6,346,267	$	1,340		0.08	%	$	6,229,991	$	1,560		0.10	%
Borrowings		599,934		76		0.05			527,669		93		0.07

Total interest-bearing liabilities		6,946,201	$	1,416		0.08	%		6,757,660	$	1,653		0.10	%
Noninterest-bearing deposits		3,490,685							3,439,683
Other noninterest-bearing liabilities		103,446							106,994
Shareholders’ equity		1,740,500							1,689,745

Total liabilities and shareholders’ equity	$	12,280,832						$	11,994,082


Net interest income and margin (tax equivalent)			$	99,452		3.41	%			$	94,582		3.36	%


	Three Months Ended							Three Months Ended
	Mar. 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	$	1,942	$	3		0.58	%	$	—	$	—		—	%
Interest-bearing deposits in nonaffiliated banks		637,129		159		0.10			195,637		50		0.10
Taxable securities		2,251,419		10,264		1.82			2,086,419		10,708		2.05
Tax exempt securities		2,368,615		16,979		2.87			2,318,912		16,733		2.89
Loans		5,296,149		66,753		5.11			5,356,229		68,321		5.07

Total interest-earning assets		10,555,254	$	94,158		3.62	%		9,957,197	$	95,812		3.83	%
Noninterest-earning assets		700,550							674,229

Total assets	$	11,255,804						$	10,631,426

Interest-bearing liabilities:
Deposits	$	5,916,237	$	1,696		0.12	%	$	5,479,873	$	1,826		0.13	%
Borrowings		456,620		91		0.08			428,117		94		0.09

Total interest-bearing liabilities		6,372,857	$	1,787		0.11	%		5,907,990	$	1,920		0.13	%
Noninterest-bearing deposits		3,114,656							2,987,572
Other noninterest-bearing liabilities		99,581							106,065
Shareholders’ equity		1,668,710							1,629,799

Total liabilities and shareholders’ equity	$	11,255,804						$	10,631,426


Net interest income and margin (tax equivalent)			$	92,371		3.55	%			$	93,892		3.75	%


	Three Months Ended
	Sept. 30, 2020
	Average		Tax Equivalent		Yield /
	Balance		Interest		Rate
Interest-earning assets:
Federal funds sold	$	2,009	$	3		0.51	%
Interest-bearing deposits in nonaffiliated banks		223,104		59		0.10
Taxable securities		2,187,547		12,063		2.21
Tax exempt securities		2,058,032		15,737		3.06
Loans		5,334,174		66,681		4.97

Total interest-earning assets		9,804,866	$	94,543		3.84	%
Noninterest-earning assets		671,374

Total assets	$	10,476,240

Interest-bearing liabilities:
Deposits	$	5,270,600	$	2,064		0.16	%
Borrowings		482,555		99		0.08

Total interest-bearing liabilities		5,753,155	$	2,163		0.15	%
Noninterest-bearing deposits		3,016,700
Other noninterest-bearing liabilities		106,295
Shareholders’ equity		1,600,090

Total liabilities and shareholders’ equity	$	10,476,240


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


	Nine Months Ended							Nine Months Ended
	Sept. 30, 2021							Sept. 30, 2020
	Average		Tax Equivalent		Yield /			Average		Tax Equivalent		Yield /
	Balance		Interest		Rate			Balance		Interest		Rate
Interest-earning assets:
Federal funds sold	$	2,181	$	9		0.55	%	$	1,854	$	14		0.99	%
Interest-bearing deposits in nonaffiliated banks		682,082		606		0.12			267,850		889		0.44
Taxable securities		2,665,988		33,834		1.69			2,283,064		40,748		2.38
Tax exempt securities		2,458,352		52,090		2.83			1,736,250		41,670		3.20
Loans		5,339,398		204,721		5.13			5,084,136		196,255		5.16

Total interest-earning assets		11,148,001	$	291,260		3.49	%		9,373,154	$	279,576		3.98	%
Noninterest-earning assets		699,326							673,325

Total assets	$	11,847,327						$	10,046,479

Interest-bearing liabilities:
Deposits	$	6,165,740	$	4,595		0.10	%	$	5,104,096	$	11,293		0.30	%
Borrowings		528,599		260		0.07			606,291		1,030		0.23

Total interest-bearing liabilities		6,694,339	$	4,855		0.10	%		5,710,387	$	12,323		0.29	%
Noninterest-bearing deposits		3,349,719							2,714,173
Other noninterest-bearing liabilities		103,354							82,670
Shareholders’ equity		1,699,915							1,539,249

Total liabilities and shareholders’ equity	$	11,847,327						$	10,046,479


Net interest income and margin (tax equivalent)			$	286,405		3.43	%			$	267,253		3.81	%