Enhanced Investments - Financial Portal

Published: 2023-01-20 00:00:00 ET

HTTP/1.1 200 OK HTTP/1.1 200 OK X-Crawlera-Slave: 193.37.55.218:8800 X-Crawlera-Version: 1.60.1 accept-ranges: bytes content-type: text/html last-modified: Fri, 20 Jan 2023 20:24:28 GMT server: AmazonS3 x-amz-id-2: mDY7QVgfE96YyBSiJTP/RTc19lT+GOmr3MLtVpRXkd+x1LX01Zk2oGqRaNWlznnH2I5FW6gwYYc= x-amz-meta-mode: 33188 x-amz-meta-s3cmd-attrs: uid:504/gname:fitrprnt/uname:fitrprnt/gid:504/mode:33184/mtime:1674246265/atime:1674246265/md5:edecd6e9dd6c30910946275860243cef/ctime:1674246265 x-amz-replication-status: COMPLETED x-amz-request-id: ZYF8M19NVEZGAKB1 x-amz-server-side-encryption: AES256 x-amz-version-id: .j_GtYz_sboCk7.efzKQxzeO8veDTEV3 x-content-type-options: nosniff x-frame-options: SAMEORIGIN x-xss-protection: 1; mode=block akamai-x-true-ttl: 604800, 604800, -1 x-akamai-transformed: 9 51786 0 pmb=mTOE,2 expires: Tue, 04 Apr 2023 19:42:39 GMT cache-control: max-age=0, no-cache, no-store pragma: no-cache date: Tue, 04 Apr 2023 19:42:39 GMT vary: Accept-Encoding strict-transport-security: max-age=31536000 ; includeSubDomains ; preload set-cookie: bm_mi=FDD10BCA9ADF2BF41E82DF7CF19CA18A~YAAQLflVaKNYWQ6HAQAAU/XKTRMIqXo3V8muOb5EC14sitKiXATomzupDno4dq2B/DyyRiN5zYQ45dSEjIXoUvrktsB3y6yh/Dyqc3Tsn1YIG1rBHcF1bJ+NvXGWHjod+ho9aHx0Q6QcBdlSoTGeFkNV6NacnTZnIQl4gvgK/lEph5egJfePpHu9M+S/DczRst7U65OPM69f/j7DWVpxvqmaf6SXUf7AN3/g4RKkNq5r8Em0gj3R5wU/d2Xl1Q3SoQ6sjZV2ouPlxr1cxsfR9PVAJArZeQ0h85UIKY9qiApHrwapJBOXQw1f0qnztjOZdBsuh7zKKkAZRQtxlCROCq+8sYKeyGmHlG0yXBFb3Wo1T7J9EbzxTg9uTc2zy/vKxAEmOQ==~1; Domain=.sec.gov; Path=/; Expires=Tue, 04 Apr 2023 21:41:41 GMT; Max-Age=7142; Secure set-cookie: bm_sv=24A8FC63389EAB07B004AC485B800BC4~YAAQLflVaKRYWQ6HAQAAU/XKTRNsIBjzOItGfN7ZMDZnW7RZIfKipZJY9GHwR9EJcVBcnBEaDTYr5PlJQ1dPaLk1MpGaRnoOTOWvJfuGqyFGZJr6K1X+It09N71Xo0McKPDGlhLjABjy4GR4aEoYSaiNFIHDxI9R49wpWVMjL3ZTtupi5Tsto04A5eRkhxzLSUlQ7Uv54PowZEmq3w5rGxHoiUuTQ2W6RL/2IbPthknBPFK+ytiWgsEld61S~1; Domain=.sec.gov; Path=/; Expires=Tue, 04 Apr 2023 21:42:39 GMT; Max-Age=7200; Secure Transfer-Encoding: chunked Proxy-Connection: close Connection: close EX-99.1 2 ffin-ex99_1.htm EX-99.1 EX-99.1

For immediate release

For More Information:
Michelle S. Hickox, EVP & Chief Financial Officer  325.627.7155
 

FIRST FINANCIAL BANKSHARES ANNOUNCES FOURTH QUARTER 2022 EARNINGS

AND 36TH YEAR OF CONSECUTIVE ANNUAL EARNINGS GROWTH

ABILENE, Texas, January 19, 2023 - First Financial Bankshares, Inc. (the “Company,” “we,” “us” or “our”) (NASDAQ: FFIN) today reported earnings of $58.67 million for the fourth quarter of 2022 compared to earnings of $55.34 million for the same quarter a year ago. Basic and diluted earnings per share were $0.41 for the fourth quarter of 2022 compared with $0.39 for the same quarter a year ago.

Earnings for the year ended December 31, 2022, totaled $234.48 million compared to $227.56 million for the year ended December 31, 2021, reflecting an increase of $6.91 million, or 3.04 percent. Basic and diluted earnings per share were $1.64 for the year ended December 31, 2022, compared with basic and diluted earnings per share of $1.60 and $1.59, respectively, for the year ended December 31, 2021. Included in earnings for the year ended December 31, 2022, when compared to the year ended December 31, 2021, were (i) an increase in net interest income of $31.05 million which included a decrease in PPP loan origination fees and interest income of $24.90 million when compared to the prior year; (ii) an increase in the provision for credit losses of $18.57 million; (iii) a decrease in mortgage revenues of $14.21 million; (iv) a decrease in debit card revenues of $5.63 million and (v) a decrease in profit sharing expenses of $5.90 million.

“We are extremely pleased with both our quarterly and annual results representing our 36th consecutive year of annual earnings growth. We finished 2022 with growth in loans, excluding PPP and held-for-sale loans, of $1.11 billion and growth in deposits of $439.02 million which was primarily driven by an increase of over 10,500 net new accounts during the year. During the fourth quarter, we were able to take advantage of lower interest rates on the longer part of the curve and sell $273.83 million of securities with lower yields and redeploy those dollars into our higher earning loan portfolio,” said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. “As a result of the hard work and dedication of our board, officers and employees, we were able to overcome some significant headwinds in 2022 which included declines in PPP, mortgage and debit card revenues and increased provision expenses. In light of the continued increases in interest rates by the Federal Reserve, we continue to focus on loan and deposit pricing that better aligns with our competitive environment. As we enter 2023, we remain focused on serving our customers and delivering solid results while actively managing the impact of the current interest rate, regulatory and economic environments. We appreciate the continued support of our customers, shareholders and associates.” Mr. Dueser added.

Net interest income for the fourth quarter of 2022 was $104.04 million compared to $94.81 million for the fourth quarter of 2021. The net interest margin, on a taxable equivalent basis, was 3.36 percent for the fourth quarter of 2022, compared to 3.32 percent for the third quarter of 2022, and 3.29 percent for the fourth quarter of 2021. The growth in net interest income was driven by higher average interest-earning assets which increased to $12.32 billion for the fourth quarter of 2022 compared to $11.89 billion in the same quarter a year ago, partially offset by lower PPP loan origination fees and interest income which totaled $16 thousand in the fourth quarter of 2022 compared to $4.57 million in the fourth quarter of 2021. PPP loan balances totaled $169 thousand at December 31, 2022 compared to $52.79 million at December 31, 2021.

The Company recorded a provision for credit losses of $4.08 million for the fourth quarter of 2022 compared to a provision for credit losses of $2.06 million for the fourth quarter of 2021. The Company’s provision for credit losses during the fourth quarter of 2022 continued to be driven by strong organic loan growth, increases in unfunded commitments and a slight decline in the projected economic forecast metrics. At December 31, 2022, the allowance for credit losses totaled $75.83 million, or 1.18 percent of loans held-for-investment (“Loans”), compared to $63.47 million at December 31, 2021, or 1.18 percent of Loans. Additionally, the reserve for unfunded commitments totaled $12.32 million at December 31, 2022 compared to $6.44 million at December 31, 2021 due to the increase in unfunded commitments and a decline in the projected economic forecast in the Company’s construction and development portfolio.

For the fourth quarter of 2022, net charge-offs totaled $905 thousand compared to net charge-offs of $2.28 million for the fourth quarter of 2021. Nonperforming assets as a percentage of Loans and foreclosed assets totaled 0.38 percent at December 31, 2022, compared with 0.63 percent at December 31, 2021. Classified loans totaled $150.70 million at December 31, 2022, compared to $161.19 million at December 31, 2021.

Noninterest income for the fourth quarter of 2022 was $28.52 million compared to $34.90 million for the fourth quarter of 2021, as a result of the following:

•

Trust fees increased to $10.12 million for the fourth quarter of 2022 compared to $9.67 million for the fourth quarter of 2021, driven by the continued increase in oil and gas revenue. At December 31, 2022, the fair value of trust assets managed was $8.75 billion.

•

Service charges on deposits increased to $6.40 million for the fourth quarter of 2022 compared with $5.76 million for the fourth quarter of 2021, driven by more than 10,500 net new accounts opened in 2022.

•

Debit card fees decreased by $3.45 million for the fourth quarter of 2022 compared to the same quarter a year ago. The decrease was due the impact of becoming subject to regulations imposed by the Federal Reserve that limits debit card interchange revenue (“Durbin Amendment”) which became effective for the Company as of July 1, 2022, and is consistent with our prior disclosures.

•

Mortgage income declined to $2.90 million for the fourth quarter of 2022 compared to $6.27 million for the fourth quarter of 2021 due to lower overall origination volumes and margins as a result of the changes in interest rates.

•

Recoveries of interest on previously charged-off or nonaccrual loans totaled $244 thousand for the fourth quarter of 2022 compared to $1.21 million for the fourth quarter of 2021.

•

Gains on sales of securities and other assets were $129 thousand during the fourth quarter of 2022 compared to $105 thousand for the fourth quarter of 2021.

Noninterest expense for the fourth quarter of 2022 totaled $57.78 million compared to $61.67 million for the fourth quarter of 2021, as a result of the following:

•

Salary, commissions and employee benefit costs totaled $32.96 million for the fourth quarter of 2022, compared to $34.98 million in the fourth quarter of 2021 reflecting annual merit-based and market driven pay increases offset by lower mortgage compensation expenses of $1.22 million and a decrease of $2.53 million in profit sharing expenses.

The Company’s efficiency ratio improved to 43.30 percent for the year ended December 31, 2022 compared to 45.84 percent for the year ended December 31, 2021.

As of December 31, 2022, consolidated assets for the Company totaled $12.97 billion compared to $13.10 billion at December 31, 2021. Loans totaled $6.44 billion at December 31, 2022, compared with Loans of $5.39 billion at December 31, 2021. Excluding PPP and held-for-sale loans, Loans grew $186.41 million, or 11.82 percent during the fourth quarter of 2022, and $1.11 billion, or 20.72 percent when compared to December 31, 2021 balances. Deposits totaled $11.01 billion at December 31, 2022, compared to $10.57 billion at December 31, 2021.

During the fourth quarter of 2022, the Company sold $273.83 million of securities classified as available-for-sale with an average book yield of 3.16 percent. The proceeds from the sales of these securities were largely used to fund organic loan growth during the quarter. As of December 31, 2022, cash flows from the security portfolio of $540.28 million are projected over the next twelve months.

Shareholders’ equity was $1.27 billion as of December 31, 2022, compared to $1.76 billion at December 31, 2021, as a result of changes in other comprehensive income (“OCI”) due to increasing interest rates over the last year. The unrealized loss on the available-for-sale investment securities portfolio, net of applicable tax, totaled $535.23 million at December 31, 2022, compared to an unrealized loss of $632.42 million at September 30, 2022, and an unrealized gain of $99.25 million at December 31, 2021.

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 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 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,” 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
		2022																2021
ASSETS		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
Cash and due from banks	$		293,286		$		227,298		$		242,665		$		203,187		$		205,053
Interest-bearing demand deposits in banks			37,392				138,484				222,899				394,566				323,535
Investment securities			5,474,359				5,745,443				6,215,036				6,502,495				6,573,179
Loans, held-for-investment, excluding PPP Loans			6,441,699				6,255,286				5,876,281				5,550,430				5,336,179
PPP loans			169				202				2,301				15,739				52,793
Total loans, held-for-investment			6,441,868				6,255,488				5,878,582				5,566,169				5,388,972
Allowance for credit losses			(75,834	)			(74,108	)			(71,932	)			(66,913	)			(63,465	)
Net loans, held-for-investment			6,366,034				6,181,380				5,806,650				5,499,256				5,325,507
Loans, held-for-sale			11,965				18,815				26,445				27,670				37,810
Premises and equipment, net			152,973				152,646				149,280				150,168				149,764
Goodwill			313,481				313,481				313,481				313,481				313,481
Other intangible assets			2,053				2,352				2,658				2,978				3,298
Other assets			322,523				330,445				281,098				220,399				170,834
Total assets	$		12,974,066		$		13,110,344		$		13,260,212		$		13,314,200		$		13,102,461

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$		4,061,788		$		4,200,792		$		4,104,034		$		3,978,724		$		3,780,230
Interest-bearing deposits			6,943,719				6,941,326				7,018,949				7,021,101				6,786,258
Total deposits			11,005,507				11,142,118				11,122,983				10,999,825				10,566,488
Borrowings			642,507				774,581				768,364				758,595				671,152
Other liabilities			60,315				61,030				39,847				67,031				105,597
Shareholders' equity			1,265,737				1,132,615				1,329,018				1,488,749				1,759,224
Total liabilities and shareholders' equity	$		12,974,066		$		13,110,344		$		13,260,212		$		13,314,200		$		13,102,461


	Quarter Ended
		2022												2021
INCOME STATEMENTS		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Interest income	$		121,137	$		112,728	$		101,981	$		97,009	$		95,995
Interest expense			17,100			9,572			3,199			1,570			1,187
Net interest income			104,037			103,156			98,782			95,439			94,808
Provision for credit losses			4,075			3,221			5,350			4,782			2,064
Net interest income after provision for credit losses			99,962			99,935			93,432			90,657			92,744
Noninterest income			28,524			30,943			37,317			34,881			34,903
Noninterest expense			57,778			59,442			58,333			59,225			61,672
Net income before income taxes			70,708			71,436			72,416			66,313			65,975
Income tax expense			12,040			12,095			11,922			10,341			10,638
Net income	$		58,668	$		59,341	$		60,494	$		55,972	$		55,337


PER COMMON SHARE DATA
Net income - basic	$	0.41	$	0.42	$	0.42	$	0.39	$	0.39
Net income - diluted		0.41		0.41		0.42		0.39		0.39
Cash dividends declared		0.17		0.17		0.17		0.15		0.15
Book value		8.87		7.94		9.32		10.43		12.34
Tangible book value		6.66		5.73		7.10		8.21		10.12
Market value		34.40		41.83		39.27		44.12		50.84
Shares outstanding - end of period		142,657,871		142,628,163		142,586,601		142,704,495		142,532,116
Average outstanding shares - basic		142,619,632		142,524,500		142,682,251		142,558,743		142,437,804
Average outstanding shares - diluted		143,071,538		143,126,088		143,238,669		143,302,063		143,251,521


PERFORMANCE RATIOS
Return on average assets	1.76	%	1.76	%	1.82	%	1.71	%	1.74	%
Return on average equity	19.87		17.31		17.26		13.53		12.63
Return on average tangible equity	27.20		22.55		22.27		16.68		15.45
Net interest margin (tax equivalent)	3.36		3.32		3.28		3.22		3.29
Efficiency ratio	43.52		43.76		41.83		44.16		46.18

FIRST FINANCIAL BANKSHARES, INC.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except share and per share data)


	Year Ended
	Dec. 31,
INCOME STATEMENTS		2022				2021
Interest income	$		432,854		$		376,405
Interest expense			31,440				6,042
Net interest income			401,414				370,363
Provision for credit losses			17,427				(1,139	)
Net interest income after provision for credit losses			383,987				371,502
Noninterest income			131,665				142,176
Noninterest expense			234,778				241,708
Net income before income taxes			280,874				271,970
Income tax expense			46,399				44,408
Net income	$		234,475		$		227,562

PER COMMON SHARE DATA
Net income - basic	$		1.64		$		1.60
Net income - diluted			1.64				1.59
Cash dividends declared			0.66				0.58
Book value			8.87				12.34
Tangible book value			6.66				10.12
Market value	$		34.40		$		50.84
Shares outstanding - end of period			142,657,871				142,532,116
Average outstanding shares - basic			142,596,252				142,291,939
Average outstanding shares - diluted			143,207,899				143,134,220

PERFORMANCE RATIOS
Return on average assets			1.76	%			1.89		%
Return on average equity			16.72				13.31
Return on average tangible equity			21.59				16.35
Net interest margin (tax equivalent)			3.29				3.40
Efficiency ratio			43.30				45.84

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Quarter Ended
	2022																	2021
ALLOWANCE FOR LOAN LOSSES		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
Balance at beginning of period	$		74,108		$		71,932		$		66,913		$		63,465		$		63,370
Loans charged-off			(1,225	)			(293	)			(275	)			(659	)			(3,067	)
Loan recoveries			320				1,409				1,191				360				783
Net recoveries (charge-offs)			(905	)			1,116				916				(299	)			(2,284	)
Provision for loan losses			2,631				1,060				4,103				3,747				2,379
Balance at end of period	$		75,834		$		74,108		$		71,932		$		66,913		$		63,465


ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	10,879		$	8,718			$	7,471			$	6,436		$	6,751
Provision for unfunded commitments		1,444			2,161				1,247				1,035			(315	)
Balance at end of period	$	12,323		$	10,879			$	8,718			$	7,471		$	6,436

Allowance for loan losses /
period-end loans held-for-investment		1.18	%		1.18		%		1.22		%		1.20	%		1.18		%
Allowance for loan losses /
nonperforming loans		311.75			301.02				281.90				232.71			200.33
Net charge-offs (recoveries) / average total loans
(annualized)		0.06			(0.07	)			(0.06	)			0.02			0.17


	Quarter Ended
	2022													2021
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Commercial:
C&I	$		917,148	$		871,133	$		837,627	$		822,310	$		784,282
PPP			169			202			2,301			15,739			52,793
Municipal			221,090			214,852			200,577			191,799			177,905
Total Commercial			1,138,407			1,086,187			1,040,505			1,029,848			1,014,980
Agricultural			76,947			76,937			90,420			82,883			98,089
Real Estate:
Construction & Development			959,426			938,051			928,644			806,211			749,793
Farm			306,322			268,139			250,028			225,942			217,220
Non-Owner Occupied CRE			732,089			717,738			636,432			636,160			623,434
Owner Occupied CRE			954,400			945,665			909,899			881,181			821,653
Residential			1,575,758			1,536,180			1,412,125			1,352,162			1,334,419
Total Real Estate			4,527,995			4,405,773			4,137,128			3,901,656			3,746,519
Consumer:
Auto			550,635			538,798			468,147			419,818			405,416
Non-Auto			147,884			147,793			142,382			131,964			123,968
Total Consumer			698,519			686,591			610,529			551,782			529,384

Total loans held-for-investment	$		6,441,868	$		6,255,488	$		5,878,582	$		5,566,169	$		5,388,972


SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	49,382	$	43,149	$	46,512	$	47,445	$	55,670
Substandard		101,316		100,568		106,156		104,715		105,515
Doubtful		-		-		-		-		-
Total classified loans	$	150,698	$	143,717	$	152,668	$	152,160	$	161,185


NONPERFORMING ASSETS
Nonaccrual loans	$	24,306		$	24,585		$	25,475		$	28,723		$	31,652
Accruing troubled debt restructured loans		19			19			20			20			21
Accruing loans 90 days past due		-			15			22			11			8
Total nonperforming loans		24,325			24,619			25,517			28,754			31,681
Foreclosed assets		-			-			-			-			2,477
Total nonperforming assets	$	24,325		$	24,619		$	25,517		$	28,754		$	34,158

As a % of loans held-for-investment and foreclosed assets		0.38	%		0.39	%		0.43	%		0.52	%		0.63	%
As a % of end of period total assets		0.19			0.19			0.19			0.22			0.26

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Quarter Ended
	2022													2021
CAPITAL RATIOS		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Common equity Tier 1 capital ratio			18.22	%		18.03	%		18.50	%		19.00	%		19.35	%
Tier 1 capital ratio			18.22			18.03			18.50			19.00			19.35
Total capital ratio			19.29			19.07			19.54			20.01			20.34
Tier 1 leverage ratio			10.96			10.79			10.65			10.78			11.13
Tangible common equity ratio			7.51			6.38			7.83			9.02			11.28
Equity/Assets ratio			9.76			8.64			10.02			11.18			13.43


	Quarter Ended
	2022															2021
NONINTEREST INCOME		Dec. 31,				Sept. 30,			June 30,			Mar. 31,				Dec. 31,
Trust fees	$		10,122		$		10,314	$		9,742	$		9,817		$		9,670
Service charges on deposits			6,397				6,399			6,038			5,706				5,762
Debit card fees			5,899				5,587			9,868			8,926				9,353
Credit card fees			632				651			700			602				602
Gain on sale and fees on mortgage loans			2,904				4,070			5,728			6,333				6,272
Net gain on sale of available-for-sale securities			131				334			1,648			31				1
Net gain on sale of foreclosed assets			-				349			18			1,084				107
Net gain (loss) on sale of assets			(2	)			526			6			(10	)			(3	)
Interest on loan recoveries			244				664			1,649			283				1,207
Other noninterest income			2,197				2,049			1,920			2,109				1,932
Total noninterest income	$		28,524		$		30,943	$		37,317	$		34,881		$		34,903


NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	32,391	$	33,129	$	31,840	$	32,540	$	31,876
Profit sharing expense		565		763		1,307		1,598		3,099
Net occupancy expense		3,350		3,440		3,292		3,225		3,333
Equipment expense		2,053		2,396		2,346		2,257		2,382
FDIC assessment fees		1,021		917		904		869		848
Debit card expense		3,054		3,013		3,200		2,964		3,221
Legal, tax and professional fees		2,814		2,604		2,513		2,957		2,835
Audit fees		451		451		450		451		423
Printing, stationery and supplies		473		600		501		540		664
Amortization of intangible assets		299		306		320		320		391
Advertising, meals and public relations		1,646		1,692		1,554		1,493		1,842
Operational and other losses		982		869		782		596		1,385
Software amortization and expense		2,420		2,564		2,522		2,457		2,817
Other noninterest expense		6,259		6,698		6,802		6,958		6,556
Total noninterest expense	$	57,778	$	59,442	$	58,333	$	59,225	$	61,672

TAX EQUIVALENT YIELD ADJUSTMENT	$	187	$	1,737	$	3,366	$	3,782	$	3,841

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Year Ended
	Dec. 31,
NONINTEREST INCOME		2022			2021
Trust fees	$		39,995	$		36,145
Service charges on deposits			24,540			21,156
Debit card fees			30,280			35,905
Credit card fees			2,585			2,373
Gain on sale and fees on mortgage loans			19,035			33,245
Net gain on sale of available-for-sale securities			2,144			815
Net gain on sale of foreclosed assets			1,451			190
Net gain (loss) on sale of assets			520			210
Interest on loan recoveries			2,840			4,039
Other noninterest income			8,275			8,098
Total noninterest income	$		131,665	$		142,176

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$		129,900	$		131,908
Profit sharing expense			4,233			10,134
Net occupancy expense			13,307			13,009
Equipment expense			9,052			9,173
FDIC assessment fees			3,711			3,130
Debit card expense			12,231			11,957
Legal, tax and professional fees			10,888			11,806
Audit fees			1,803			1,759
Printing, stationery and supplies			2,114			1,910
Amortization of intangible assets			1,245			1,613
Advertising, meals and public relations			6,385			6,368
Operational and other losses			3,229			3,293
Software amortization and expense			9,963			11,120
Other noninterest expense			26,717			24,528
Total noninterest expense	$		234,778	$		241,708

TAX EQUIVALENT YIELD ADJUSTMENT	$		9,071	$		14,691

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	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			12,231		2.44				2,164,829			14,382		2.66
Loans			6,391,703			86,326		5.36				6,082,649			77,851		5.08
Total interest-earning assets			12,317,459	$		121,324		3.91	%			12,538,621	$		114,464		3.62	%
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)				$		104,224		3.36	%				$		104,893		3.32	%

	Three Months Ended									Three Months Ended
	June 30, 2022									Mar. 31, 2022
		Average			Tax Equivalent		Yield /				Average			Tax Equivalent		Yield /
		Balance			Interest		Rate				Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		1,466	$		5		1.45	%	$		1,015	$		1		0.52	%
Interest-bearing demand deposits in nonaffiliated banks			288,784			547		0.76				171,970			94		0.22
Taxable securities			4,101,751			19,151		1.87				4,231,949			17,823		1.68
Tax-exempt securities			2,376,324			17,166		2.89				2,612,025			18,107		2.77
Loans			5,720,804			68,478		4.80				5,487,538			64,766		4.79
Total interest-earning assets			12,489,129	$		105,347		3.38	%			12,504,497	$		100,791		3.27	%
Noninterest-earning assets			825,711									744,810
Total assets	$		13,314,840							$		13,249,307
Interest-bearing liabilities:
Deposits	$		7,049,041	$		2,967		0.17	%	$		6,898,059	$		1,369		0.08	%
Borrowings			730,477			232		0.13				781,314			201		0.10
Total interest-bearing liabilities			7,779,518	$		3,199		0.16	%			7,679,373	$		1,570		0.08	%
Noninterest-bearing deposits			4,064,207									3,827,451
Other noninterest-bearing liabilities			65,475									64,999
Shareholders' equity			1,405,640									1,677,484
Total liabilities and shareholders' equity	$		13,314,840							$		13,249,307

Net interest income and margin (tax equivalent)				$		102,148		3.28	%				$		99,221		3.22	%

	Three Months Ended
	Dec. 31, 2021
		Average			Tax Equivalent		Yield /
		Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		82	$		-		0.48	%
Interest-bearing demand deposits in nonaffiliated banks			320,102			124		0.15
Taxable securities			3,590,137			13,556		1.51
Tax-exempt securities			2,636,360			18,163		2.76
Loans			5,347,069			67,993		5.04
Total interest-earning assets			11,893,750	$		99,836		3.33	%
Noninterest-earning assets			726,932
Total assets	$		12,620,682
Interest-bearing liabilities:
Deposits	$		6,399,343	$		1,110		0.07	%
Borrowings			639,725			77		0.05
Total interest-bearing liabilities			7,039,068	$		1,187		0.07	%
Noninterest-bearing deposits			3,744,848
Other noninterest-bearing liabilities			99,091
Shareholders' equity			1,737,675
Total liabilities and shareholders' equity	$		12,620,682

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

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Year Ended									Year Ended
	Dec. 31, 2022									Dec. 31, 2021
		Average			Tax Equivalent		Yield /				Average			Tax Equivalent		Yield /
		Balance			Interest		Rate				Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		2,196	$		63		2.85	%	$		1,651	$		9		0.55	%
Interest-bearing demand deposits in nonaffiliated banks			217,525			3,633		1.67				590,843			730		0.12
Taxable securities			4,032,228			78,924		1.96				2,898,924			47,390		1.63
Tax-exempt securities			2,286,578			61,886		2.71				2,503,220			70,253		2.81
Loans			5,923,594			297,420		5.02				5,341,332			272,714		5.11
Total interest-earning assets			12,462,121	$		441,926		3.55	%			11,335,970	$		391,096		3.45	%
Noninterest-earning assets			824,550									706,285
Total assets	$		13,286,671							$		12,042,255
Interest-bearing liabilities:
Deposits	$		6,955,783	$		26,246		0.38	%	$		6,224,621	$		5,704		0.09	%
Borrowings			802,091			5,195		0.65				556,610			338		0.06
Total interest-bearing liabilities			7,757,874	$		31,441		0.41	%			6,781,231	$		6,042		0.09	%
Noninterest-bearing deposits			4,063,740									3,449,313
Other noninterest-bearing liabilities			62,953									102,279
Shareholders' equity			1,402,104									1,709,432
Total liabilities and shareholders' equity	$		13,286,671							$		12,042,255

Net interest income and margin (tax equivalent)				$		410,485		3.29	%				$		385,054		3.40	%