Enhanced Investments - Financial Portal

Published: 2022-10-20 00:00:00 ET

HTTP/1.1 200 OK HTTP/1.1 200 OK X-Crawlera-Slave: 154.9.52.5:8800 X-Crawlera-Version: 1.60.1 accept-ranges: bytes content-type: text/html last-modified: Thu, 20 Oct 2022 20:42:26 GMT server: AmazonS3 x-amz-id-2: CpTibkru3ONhkBkCqTd1vT7b5MKUw9RrZRGpEcA2BnqqAxvoPe3tNSbRhqscU1+kpCLh4BGYONw= x-amz-meta-mode: 33188 x-amz-meta-s3cmd-attrs: uid:504/gname:fitrprnt/uname:fitrprnt/gid:504/mode:33184/mtime:1666298543/atime:1666298543/md5:4a0a84027e5f6342cad750b26284434b/ctime:1666298543 x-amz-replication-status: COMPLETED x-amz-request-id: 8NB4CRDT0ZTR05GD x-amz-server-side-encryption: AES256 x-amz-version-id: I.4ockJSFAtGS5ackuMOobg1sIZtpKGB x-content-type-options: nosniff x-frame-options: SAMEORIGIN x-xss-protection: 1; mode=block x-akamai-transformed: 9 - 0 pmb=mTOE,2 expires: Wed, 05 Apr 2023 17:24:55 GMT cache-control: max-age=0, no-cache, no-store pragma: no-cache date: Wed, 05 Apr 2023 17:24:55 GMT vary: Accept-Encoding akamai-x-true-ttl: -1 strict-transport-security: max-age=31536000 ; includeSubDomains ; preload set-cookie: bm_mi=BFB9C769D2C7D2DE2EAE03EED8A46B2F~YAAQlPjaF4RXhRSHAQAAMzlzUhNr2BBQQNdDBCmYM8+T9qie2fole4HfYlL3mrZFke9AKAO47AM3aAmLp5/NKA/Ydu2Gyq9rYlwA/K7kXur41hahLQvh5szh15dWiwDhc1gvBiVdGjPgOOSkfxx/azH2LDkEgkeJUP3zwBTq1kAxid2AnzZj+NqOT+U5NT65yS75Uj+n7FAba92ymMJE17XucOEiVTo9cQwstiCZA6L3q+DLhj6vNtdtLmg44ye7QAknbaA9ODnrsJ7fYz1s/eGxFPEjZzDpLQ7+eL60AH5FCIQ2OlrcsmEyjU3t5I0H7TPuCbT0uHDx+CTV967x/DH63XJ5AUjMhxnsOVYA0UR4j4jw73xS5y7YZRrcPA+rKYj5RXui5g==~1; Domain=.sec.gov; Path=/; Expires=Wed, 05 Apr 2023 19:20:46 GMT; Max-Age=6951; Secure set-cookie: bm_sv=B69ABD6D2E80F522A1A7984A343B02B6~YAAQlPjaF4VXhRSHAQAAMzlzUhN8asTjJaNHSCtZ7N4csbwa9q34LIpQTPc2nOVhYwmJ8EYgRUjar8uQNJLFiKl2m6+/TeMp7TTaEp58njFRiL8AespmPvGlCXcj4nam096fPgQuDpanWfuj6O3D5XiNLLbD/WiESIjfC3nzEMzNpwjtdnhRlg0g5ElHIhDk8QKcqzOJJ/UDLUjz42uPU1wsiJzgjV3uQF3e7rMPqjWsRzuLz6zaRNPAWN80~1; Domain=.sec.gov; Path=/; Expires=Wed, 05 Apr 2023 19:22:02 GMT; Max-Age=7027; 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:
James R. Gordon, EVP & Chief Financial Officer  
325.627.7155
 

FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2022 EARNINGS

ABILENE, Texas, October 20, 2022 - First Financial Bankshares, Inc. (the “Company”) (NASDAQ: FFIN) today reported earnings of $59.34 million for the third quarter of 2022 compared to earnings of $58.93 million for the same quarter a year ago. Diluted earnings per share were $0.41 for both the third quarter of 2022 and 2021. As of September 30, 2022, the Company has 4.75 million shares remaining under the previously announced share repurchase authorization. Through September 30, 2022, the Company has repurchased 244,559 shares of its common stock at an average price of $38.61.

As further described below, the results this quarter compared to the same quarter a year ago included an increase in net interest income of $7.37 million from continued balance sheet growth. Included in the change in net interest income was a decline in PPP loan origination fees and interest of $8.19 million when compared to the same period a year ago. Additionally, the results this quarter when compared to the same quarter a year ago were impacted by (i) an increase in the provision for credit losses of $3.22 million; (ii) a decrease in interest on loan recoveries of $1.08 million; (iii) a decrease in debit card fees of $3.61 million; and (iv) a decrease in mortgage revenues of $4.72 million.

“During the third quarter, we continued our momentum, driven by our focus on customer service excellence in our vibrant Texas markets, that produced strong loan growth while maintaining deposits. Our operating results for the third quarter reflect overall loan growth, excluding PPP and held-for-sale loans, of $379 million, or 25.6 percent annualized, and deposit growth of $19.14 million through the addition of over 9,300 net new accounts year-to-date,” said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. “We have strong capital as reflected by our regulatory capital ratios being well above required levels while maintaining combined allowances for credit losses and unfunded commitments totaling $84.99 million. 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 third quarter of 2022 was $103.16 million compared to $95.78 million for the third quarter of 2021. The net interest margin, on a taxable equivalent basis, was 3.32 percent for the third quarter of 2022, compared to 3.28 percent for the second quarter of 2022, and 3.41 percent in the third quarter of 2021. The growth in net interest income was driven by higher average interest-earning assets which increased to $12.54 billion for the third quarter of 2022 compared to $11.58 billion a year ago, partially offset by lower PPP loan origination fees and interest which totaled $62 thousand in the third quarter of 2022 compared to $8.25 million in the third quarter of 2021. PPP loan balances totaled $202 thousand at September 30, 2022.

The Company recorded a provision for credit losses of $3.22 million for the third quarter of 2022 compared to no provision for credit losses for the third quarter of 2021. The Company’s provision for credit losses during the third quarter of 2022 was primarily driven by strong organic loan growth, increases in unfunded commitments and a slight decline in the projected economic forecast metrics offset by loan recoveries and lower classified loan specific reserves. At September 30, 2022, the allowance for credit losses totaled $74.11 million, or 1.18 percent of loans held-for-investment (“loans” hereafter), compared to $63.37 million at September 30, 2021, or 1.20 percent of loans. Additionally, the reserve for unfunded commitments totaled $10.88 million at September 30, 2022 compared to $6.75 million at September 30, 2021.

For the third quarter of 2022, net recoveries totaled $1.12 million compared to net recoveries of $1.23 million for the third quarter of 2021. Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.39 percent at September 30, 2022, compared with 0.48 percent at September 30, 2021. Classified loans totaled $143.72 million at September 30, 2022, compared with $165.77 million at September 30, 2021.

Noninterest income for the third quarter of 2022 totaled $30.94 million compared to $37.73 million for the third quarter of 2021, as a result of the following:

•

Trust fees increased to $10.31 million for the third quarter of 2022 compared to $9.48 million for the third quarter of 2021 driven mainly by the continued increase in oil and gas revenue.

•

Service charges on deposits increased to $6.40 million for the third quarter of 2022 compared to $5.67 million for the third quarter of 2021 primarily due to the continued increase in net new accounts.

•

Debit card fees decreased by $3.61 million for the third quarter of 2022 compared to the same quarter a year ago and $4.28 million from the second quarter of 2022. The decreases were due the impact of becoming subject to regulations imposed by the Federal Reserve that limits debit card interchange revenue ("Durbin Amendment") effective July 1, 2022, and is consistent with our prior disclosures.

•

Mortgage income was $4.07 million for the third quarter of 2022 compared to $8.79 million for the third 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 $664 thousand for the third quarter of 2022 compared to $1.75 million for the third quarter of 2021.

•

Gains on sales of securities and other assets were $1.21 million during the third quarter of 2022 compared to $22 thousand for the third quarter of 2021.

Noninterest expense for the third quarter of 2022 totaled $59.44 million compared to $62.94 million for the third quarter of 2021, as a result of the following:

•

Salary, commissions, and employee benefit costs totaled $33.89 million for the third quarter of 2022, compared to $37.09 million in the third quarter of 2021 reflecting annual merit-based and market driven pay increases offset by lower mortgage compensation expenses of $1.26 million and a decrease of $1.87 million in profit sharing expenses.

The Company’s efficiency ratio improved to 43.76 percent for the third quarter of 2022 compared to 45.88 percent for the third quarter of 2021.

As of September 30, 2022, consolidated total assets were $13.11 billion compared to $12.54 billion at September 30, 2021. Loans totaled $6.26 billion at September 30, 2022, compared with loans of $5.29 billion at September 30, 2021. Loans, excluding PPP and held-for-sale loans, grew $379.00 million during the third quarter of 2022 and $919.11 million for the first nine months of 2022. Deposits totaled $11.14 billion at September 30, 2022, compared to $9.89 billion at September 30, 2021.

Shareholders’ equity was $1.13 billion as of September 30, 2022, compared to $1.33 billion and $1.73 billion at June 30, 2022, and September 30, 2021, respectively, as a result of changes in other comprehensive income (“OCI”) due to increasing interest rates over the last nine months. The unrealized loss on the available-for-sale investment securities portfolio, net of applicable tax, totaled $632.42 million at September 30, 2022, compared to an unrealized loss of $400.51 million at June 30, 2022, and an unrealized gain of $109.45 million at September 30, 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 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 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		Sept. 30,				June 30,				Mar. 31,				Dec. 31,				Sept. 30,
Cash and due from banks	$		227,298		$		242,665		$		203,187		$		205,053		$		201,901
Interest-bearing demand deposits in banks			138,484				222,899				394,566				323,535				359,241
Investment securities			5,745,443				6,215,036				6,502,495				6,573,179				6,119,984
Loans, held-for-investment, excluding PPP Loans			6,255,286				5,876,281				5,550,430				5,336,179				5,147,160
PPP loans			202				2,301				15,739				52,793				139,334
Total loans, held-for-investment			6,255,488				5,878,582				5,566,169				5,388,972				5,286,494
Allowance for credit losses			(74,108	)			(71,932	)			(66,913	)			(63,465	)			(63,370	)
Net loans, held-for-investment			6,181,380				5,806,650				5,499,256				5,325,507				5,223,124
Loans, held-for-sale			18,815				26,445				27,670				37,810				47,721
Premises and equipment, net			152,646				149,280				150,168				149,764				147,516
Goodwill			313,481				313,481				313,481				313,481				313,481
Other intangible assets			2,352				2,658				2,978				3,298				3,689
Other assets			330,445				281,098				220,399				170,834				126,601
Total assets	$		13,110,344		$		13,260,212		$		13,314,200		$		13,102,461		$		12,543,258

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$		4,200,792		$		4,104,034		$		3,978,724		$		3,780,230		$		3,574,405
Interest-bearing deposits			6,941,326				7,018,949				7,021,101				6,786,258				6,318,712
Total deposits			11,142,118				11,122,983				10,999,825				10,566,488				9,893,117
Borrowings			774,581				768,364				758,595				671,152				648,679
Trade date payable			-				-				-				-				174,236
Other liabilities			61,030				39,847				67,031				105,597				93,491
Shareholders' equity			1,132,615				1,329,018				1,488,749				1,759,224				1,733,735
Total liabilities and shareholders' equity	$		13,110,344		$		13,260,212		$		13,314,200		$		13,102,461		$		12,543,258


	Quarter Ended
		2022									2021
INCOME STATEMENTS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Interest income	$		112,728	$		101,981	$		97,009	$		95,995	$		97,198
Interest expense			9,572			3,199			1,570			1,187			1,416
Net interest income			103,156			98,782			95,439			94,808			95,782
Provision for credit losses			3,221			5,350			4,782			2,064			-
Net interest income after provision for credit losses			99,935			93,432			90,657			92,744			95,782
Noninterest income			30,943			37,317			34,881			34,903			37,726
Noninterest expense			59,442			58,333			59,225			61,672			62,939
Net income before income taxes			71,436			72,416			66,313			65,975			70,569
Income tax expense			12,095			11,922			10,341			10,638			11,641
Net income	$		59,341	$		60,494	$		55,972	$		55,337	$		58,928


PER COMMON SHARE DATA
Net income - basic	$	0.42	$	0.42	$	0.39	$	0.39	$	0.41
Net income - diluted		0.41		0.42		0.39		0.39		0.41
Cash dividends declared		0.17		0.17		0.15		0.15		0.15
Book value		7.94		9.32		10.43		12.34		12.17
Tangible book value		5.73		7.10		8.21		10.12		9.94
Market value		41.83		39.27		44.12		50.84		45.95
Shares outstanding - end of period		142,628,163		142,586,601		142,704,495		142,532,116		142,467,687
Average outstanding shares - basic		142,524,500		142,682,251		142,558,743		142,437,804		142,334,449
Average outstanding shares - diluted		143,126,088		143,238,669		143,302,063		143,251,521		143,218,920


PERFORMANCE RATIOS
Return on average assets	1.76	%	1.82	%	1.71	%	1.74	%	1.90	%
Return on average equity	17.31		17.26		13.53		12.63		13.43
Return on average tangible equity	22.55		22.27		16.68		15.45		16.43
Net interest margin (tax equivalent)	3.32		3.28		3.22		3.29		3.41
Efficiency ratio	43.76		41.83		44.16		46.18		45.88

FIRST FINANCIAL BANKSHARES, INC.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except share and per share data)


	Nine Months Ended
	Sept. 30,
INCOME STATEMENTS		2022				2021
Interest income	$		311,718		$		280,410
Interest expense			14,340				4,855
Net interest income			297,378				275,555
Provision for credit losses			13,353				(3,203	)
Net interest income after provision for credit losses			284,025				278,758
Noninterest income			103,141				107,273
Noninterest expense			177,000				180,036
Net income before income taxes			210,166				205,995
Income tax expense			34,359				33,770
Net income	$		175,807		$		172,225

PER COMMON SHARE DATA
Net income - basic	$		1.23		$		1.21
Net income - diluted			1.23				1.20
Cash dividends declared			0.49				0.43
Book value			7.94				12.17
Tangible book value			5.73				9.94
Market value	$		41.83		$		45.95
Shares outstanding - end of period			142,628,163				142,467,687
Average outstanding shares - basic			142,588,373				142,242,783
Average outstanding shares - diluted			143,246,768				143,183,792

PERFORMANCE RATIOS
Return on average assets			1.77	%			1.94		%
Return on average equity			15.88				13.55
Return on average tangible equity			20.20				16.66
Net interest margin (tax equivalent)			3.27				3.43
Efficiency ratio			43.23				45.73

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Quarter Ended
		2022												2021
ALLOWANCE FOR LOAN LOSSES		Sept. 30,				June 30,				Mar. 31,				Dec. 31,				Sept. 30,
Balance at beginning of period	$		71,932		$		66,913		$		63,465		$		63,370		$		62,138
Loans charged-off			(293	)			(275	)			(659	)			(3,067	)			(1,475	)
Loan recoveries			1,409				1,191				360				783				2,707
Net recoveries (charge-offs)			1,116				916				(299	)			(2,284	)			1,232
Provision for loan losses			1,060				4,103				3,747				2,379				-
Balance at end of period	$		74,108		$		71,932		$		66,913		$		63,465		$		63,370


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

Allowance for loan losses /
period-end loans held-for-investment		1.18		%		1.22		%		1.20	%		1.18		%		1.20		%
Allowance for loan losses /
nonperforming loans		301.02				281.90				232.71			200.33				250.92
Net charge-offs (recoveries) / average total loans
(annualized)		(0.07	)			(0.06	)			0.02			0.17				(0.09	)


	Quarter Ended
		2022									2021
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Commercial:
C&I	$		871,133	$		837,627	$		822,310	$		784,282	$		680,263
PPP			202			2,301			15,739			52,793			139,334
Municipal			214,852			200,577			191,799			177,905			165,847
Total Commercial			1,086,187			1,040,505			1,029,848			1,014,980			985,444
Agricultural			76,937			90,420			82,883			98,089			98,947
Real Estate:
Construction & Development			938,051			928,644			806,211			749,793			656,530
Farm			268,139			250,028			225,942			217,220			203,064
Non-Owner Occupied CRE			717,738			636,432			636,160			623,434			674,958
Owner Occupied CRE			945,665			909,899			881,181			821,653			824,231
Residential			1,536,180			1,412,125			1,352,162			1,334,419			1,328,798
Total Real Estate			4,405,773			4,137,128			3,901,656			3,746,519			3,687,581
Consumer:
Auto			538,798			468,147			419,818			405,416			394,072
Non-Auto			147,793			142,382			131,964			123,968			120,450
Total Consumer			686,591			610,529			551,782			529,384			514,522

Total loans held-for-investment	$		6,255,488	$		5,878,582	$		5,566,169	$		5,388,972	$		5,286,494


SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	43,149	$	46,512	$	47,445	$	55,670	$	53,620
Substandard		100,568		106,156		104,715		105,515		112,151
Doubtful		-		-		-		-		-
Total classified loans	$	143,717	$	152,668	$	152,160	$	161,185	$	165,771


NONPERFORMING ASSETS
Nonaccrual loans	$	24,585		$	25,475		$	28,723		$	31,652		$	25,210
Accruing troubled debt restructured loans		19			20			20			21			22
Accruing loans 90 days past due		15			22			11			8			23
Total nonperforming loans		24,619			25,517			28,754			31,681			25,255
Foreclosed assets		-			-			-			2,477			28
Total nonperforming assets	$	24,619		$	25,517		$	28,754		$	34,158		$	25,283

As a % of loans held-for-investment and foreclosed assets		0.39	%		0.43	%		0.52	%		0.63	%		0.48	%
As a % of end of period total assets		0.19			0.19			0.22			0.26			0.20

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Quarter Ended
		2022									2021
CAPITAL RATIOS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Common equity Tier 1 capital ratio			18.03	%		18.50	%		19.00	%		19.35	%		19.71	%
Tier 1 capital ratio			18.03			18.50			19.00			19.35			19.71
Total capital ratio			19.07			19.54			20.01			20.34			20.76
Tier 1 leverage ratio			10.79			10.65			10.78			11.13			11.19
Tangible common equity ratio			6.38			7.83			9.02			11.28			11.59
Equity/Assets ratio			8.64			10.02			11.18			13.43			13.82


	Quarter Ended
		2022										2021
NONINTEREST INCOME		Sept. 30,			June 30,			Mar. 31,				Dec. 31,				Sept. 30,
Trust fees	$		10,314	$		9,742	$		9,817		$		9,670		$		9,484
Service charges on deposits			6,399			6,038			5,706				5,762				5,673
Debit card fees			5,587			9,868			8,926				9,353				9,198
Credit card fees			651			700			602				602				595
Gain on sale and fees on mortgage loans			4,070			5,728			6,333				6,272				8,788
Net gain on sale of available-for-sale securities			334			1,648			31				1				1
Net gain on sale of foreclosed assets			349			18			1,084				107				27
Net gain (loss) on sale of assets			526			6			(10	)			(3	)			(6	)
Interest on loan recoveries			664			1,649			283				1,207				1,746
Other noninterest income			2,049			1,920			2,109				1,932				2,220
Total noninterest income	$		30,943	$		37,317	$		34,881		$		34,903		$		37,726


NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	33,129	$	31,840	$	32,540	$	31,876	$	34,460
Profit sharing expense		763		1,307		1,598		3,099		2,630
Net occupancy expense		3,440		3,292		3,225		3,333		3,288
Equipment expense		2,396		2,346		2,257		2,382		2,450
FDIC assessment fees		917		904		869		848		815
Debit card expense		3,013		3,200		2,964		3,221		2,929
Legal, tax and professional fees		2,604		2,513		2,957		2,835		2,893
Audit fees		451		450		451		423		466
Printing, stationery and supplies		600		501		540		664		432
Amortization of intangible assets		306		320		320		391		398
Advertising, meals and public relations		1,692		1,554		1,493		1,842		1,746
Operational and other losses		869		782		596		1,385		1,087
Software amortization and expense		2,564		2,522		2,457		2,817		2,855
Other noninterest expense		6,698		6,802		6,958		6,556		6,490
Total noninterest expense	$	59,442	$	58,333	$	59,225	$	61,672	$	62,939

TAX EQUIVALENT YIELD ADJUSTMENT	$	1,737	$	3,366	$	3,782	$	3,841	$	3,670

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Nine Months Ended
	Sept. 30,
NONINTEREST INCOME		2022			2021
Trust fees	$		29,873	$		26,475
Service charges on deposits			18,143			15,394
Debit card fees			24,381			26,552
Credit card fees			1,953			1,771
Gain on sale and fees on mortgage loans			16,131			26,973
Net gain on sale of available-for-sale securities			2,013			814
Net gain on sale of foreclosed assets			1,451			83
Net gain (loss) on sale of assets			522			213
Interest on loan recoveries			2,596			2,832
Other noninterest income			6,078			6,166
Total noninterest income	$		103,141	$		107,273

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$		97,509	$		100,032
Profit sharing expense			3,668			7,035
Net occupancy expense			9,957			9,676
Equipment expense			6,999			6,791
FDIC assessment fees			2,690			2,282
Debit card expense			9,177			8,736
Legal, tax and professional fees			8,074			8,971
Audit fees			1,352			1,336
Printing, stationery and supplies			1,641			1,246
Amortization of intangible assets			946			1,222
Advertising, meals and public relations			4,739			4,526
Operational and other losses			2,247			1,908
Software amortization and expense			7,543			8,303
Other noninterest expense			20,458			17,972
Total noninterest expense	$		177,000	$		180,036

TAX EQUIVALENT YIELD ADJUSTMENT	$		8,884	$		10,850

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Three Months Ended									Three Months Ended
	Sept. 30, 2022									June 30, 2022
		Average			Tax Equivalent		Yield /				Average			Tax Equivalent		Yield /
		Balance			Interest		Rate				Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		3,107	$		19		2.49	%	$		1,466	$		5		1.45	%
Interest-bearing demand deposits in nonaffiliated banks			248,929			1,413		2.25				288,784			547		0.76
Taxable securities			4,039,107			20,799		2.06				4,101,751			19,151		1.87
Tax-exempt securities			2,164,829			14,382		2.66				2,376,324			17,166		2.89
Loans			6,082,649			77,851		5.08				5,720,804			68,478		4.80
Total interest-earning assets			12,538,621	$		114,464		3.62	%			12,489,129	$		105,347		3.38	%
Noninterest-earning assets			833,980									825,711
Total assets	$		13,372,601							$		13,314,840
Interest-bearing liabilities:
Deposits	$		7,004,478	$		8,787		0.50	%	$		7,049,041	$		2,967		0.17	%
Borrowings			768,096			784		0.40				730,477			232		0.13
Total interest-bearing liabilities			7,772,574	$		9,571		0.49	%			7,779,518	$		3,199		0.16	%
Noninterest-bearing deposits			4,178,675									4,064,207
Other noninterest-bearing liabilities			61,320									65,475
Shareholders' equity			1,360,032									1,405,640
Total liabilities and shareholders' equity	$		13,372,601							$		13,314,840

Net interest income and margin (tax equivalent)				$		104,893		3.32	%				$		102,148		3.28	%

	Three Months Ended									Three Months Ended
	Mar. 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	$		1,015	$		1		0.52	%	$		82	$		-		0.48	%
Interest-bearing demand deposits in nonaffiliated banks			171,970			94		0.22				320,102			124		0.15
Taxable securities			4,231,949			17,823		1.68				3,590,137			13,556		1.51
Tax-exempt securities			2,612,025			18,107		2.77				2,636,360			18,163		2.76
Loans			5,487,538			64,766		4.79				5,347,069			67,993		5.04
Total interest-earning assets			12,504,497	$		100,791		3.27	%			11,893,750	$		99,836		3.33	%
Noninterest-earning assets			744,810									726,932
Total assets	$		13,249,307							$		12,620,682
Interest-bearing liabilities:
Deposits	$		6,898,059	$		1,369		0.08	%	$		6,399,343	$		1,110		0.07	%
Borrowings			781,314			201		0.10				639,725			77		0.05
Total interest-bearing liabilities			7,679,373	$		1,570		0.08	%			7,039,068	$		1,187		0.07	%
Noninterest-bearing deposits			3,827,451									3,744,848
Other noninterest-bearing liabilities			64,999									99,091
Shareholders' equity			1,677,484									1,737,675
Total liabilities and shareholders' equity	$		13,249,307							$		12,620,682

Net interest income and margin (tax equivalent)				$		99,221		3.22	%				$		98,649		3.29	%

	Three Months Ended
	Sept. 30, 2021
		Average			Tax Equivalent		Yield /
		Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		1,554	$		2		0.51	%
Interest-bearing demand deposits in nonaffiliated banks			612,551			236		0.15
Taxable securities			3,081,215			12,122		1.57
Tax-exempt securities			2,542,606			17,701		2.78
Loans			5,337,807			70,807		5.26
Total interest-earning assets			11,575,733	$		100,868		3.46	%
Noninterest-earning assets			705,099
Total assets	$		12,280,832
Interest-bearing liabilities:
Deposits	$		6,346,267	$		1,340		0.08	%
Borrowings			599,934			76		0.05
Total interest-bearing liabilities			6,946,201	$		1,416		0.08	%
Noninterest-bearing deposits			3,490,685
Other noninterest-bearing liabilities			103,446
Shareholders' equity			1,740,500
Total liabilities and shareholders' equity	$		12,280,832

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

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Nine Months Ended									Nine Months Ended
	Sept. 30, 2022									Sept. 30, 2021
		Average			Tax Equivalent		Yield /				Average			Tax Equivalent		Yield /
		Balance			Interest		Rate				Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		1,870	$		26		1.87	%	$		2,181	$		9		0.55	%
Interest-bearing demand deposits in nonaffiliated banks			236,843			2,054		1.16				682,082			606		0.12
Taxable securities			4,123,562			57,772		1.87				2,665,988			33,834		1.69
Tax-exempt securities			2,382,754			49,655		2.78				2,458,352			52,090		2.83
Loans			5,765,844			211,095		4.89				5,339,398			204,721		5.13
Total interest-earning assets			12,510,873	$		320,602		3.43	%			11,148,001	$		291,260		3.49	%
Noninterest-earning assets			801,828									699,326
Total assets	$		13,312,701							$		11,847,327
Interest-bearing liabilities:
Deposits	$		6,984,249	$		13,124		0.25	%	$		6,165,740	$		4,595		0.10	%
Borrowings			759,913			1,216		0.21				528,599			260		0.07
Total interest-bearing liabilities			7,744,162	$		14,340		0.25	%			6,694,339	$		4,855		0.10	%
Noninterest-bearing deposits			4,024,731									3,349,719
Other noninterest-bearing liabilities			63,919									103,354
Shareholders' equity			1,479,889									1,699,915
Total liabilities and shareholders' equity	$		13,312,701							$		11,847,327

Net interest income and margin (tax equivalent)				$		306,262		3.27	%				$		286,405		3.43	%