First Financial Bankshares Announces Fourth Quarter 2020 Earnings And 34th Year Of Consecutive Annual Earnings Growth

Rhea-AI Summary

First Financial Bankshares reported strong Q4 2020 earnings of $58.48 million, a 41.28% increase from Q4 2019. Total annual earnings reached $202.03 million for 2020, up 22.58%. The results include the impact of the TB&T Bancshares acquisition. Net interest income rose to $90.54 million, aided by a increase in average-earning assets. Organic asset growth was $1.9 billion. Trust assets grew to $7.51 billion, and the efficiency ratio improved to 45.49%. Shareholders' equity rose to $1.68 billion.

Positive

• Earnings increased by $17.09 million, or 41.28%, in Q4 2020 compared to Q4 2019.
• Annual earnings totaled $202.03 million, a 22.58% increase from 2019.
• Organic asset growth of $1.9 billion excluding acquisitions.
• Net interest income rose by $15.22 million to $90.54 million in Q4 2020.
• Trust assets grew to $7.51 billion, reflecting an 11.33% increase.
• Tangible book value per share increased by 23.48% to $9.57.
• Efficiency ratio improved to 45.49%, compared to 48.61% in 2019.

Negative

• Net interest margin decreased to 3.75%, down from 3.99% a year ago.
• Nonperforming assets as a percentage of loans rose to 0.83% from 0.61% in 2019.
• Net charge-offs increased to $561 thousand in Q4 2020 from $340 thousand in Q4 2019.

ABILENE, Texas, Jan. 28, 2021 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the fourth quarter of 2020 of $58.48 million, or $0.41 per diluted share, compared with earnings of $41.39 million, or $0.30 per diluted share, for the fourth quarter of 2019, representing a $17.09 million, or 41.28 percent, increase.  

Earnings for the year ended December 31, 2020 totaled $202.03 million, or $1.42 per diluted share, compared to $164.81 million, or $1.21 per diluted share, for the year ended December 31, 2019, representing a $37.22 million, or 22.58 percent increase.

All amounts for the fourth quarter and year ended December 31, 2020, include the results of the Company's acquisition of TB&T Bancshares, Inc. and its wholly-owned subsidiary, The Bank & Trust of Bryan/College Station, Texas, which was effective January 1, 2020.

"We are extremely pleased with both our quarterly and annual results representing our 34^th consecutive year of annual earnings growth.  During 2020, in the face of the pandemic, two hurricanes and one tornado, we stayed Texas Strong, kept our doors open and served our customers and communities while keeping our associates safe. Because of this, the Company had organic asset growth of $1.9 billion, excluding the $775 million acquisition of The Bank & Trust of Bryan/College Station. We originated $704 million in PPP loans, $1.21 billion in secondary market mortgage loans for over 4,000 families across Texas and grew trust assets managed to $7.51 billion. In 2020, we recorded annual earnings of $202.03 million and ended the year with strong momentum and are very optimistic about our outlook for 2021," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc.

Net interest income for the fourth quarter of 2020 was $90.54 million, up $15.22 million, from $75.32 million for the fourth quarter of 2019. The net interest margin, on a tax equivalent basis, was 3.75 percent for the quarter compared to 3.99 percent a year ago and 3.75 percent from last quarter.  Net interest income was positively impacted by a $2.29 billion increase in average-earning assets to $9.96 billion for the fourth quarter of 2020 when compared to the same period a year ago.  For the fourth quarter of 2020, interest income included Payroll Protection Program ("PPP") loan fees of $5.67 million compared to $2.83 million for the third quarter of 2020, and accretion from acquired loans of $571 thousand compared to $384 thousand in the same quarter last year and $1.85 million for the third quarter of 2020.  

During the fourth quarter of 2020, $220.34 million of PPP loans were forgiven and the remaining PPP loans totaled $483.66 million at December 31, 2020 ($624.15 million and $479.43 million in average balances for the fourth quarter and year-to-date, respectively). The remainder of the PPP loan deferred fees totaled $11.27 million at December 31, 2020 and continue to be amortized over the shorter of the repayment period or the contractual life of 24 months.

The Company initially elected to delay implementation of CECL, and calculated and recorded the provision for credit losses through the nine-months ended September 30, 2020 under the incurred loss model. The Company elected to adopt CECL, effective as of January 1, 2020, through a transition charge to retained earnings of $589 thousand ($466 thousand net of applicable income taxes).

At December 31, 2020, the Company calculated the allowance for credit losses utilizing the CECL methodology which resulted in a net reversal of provision for credit losses during the fourth quarter of 2020 of $8.03 million, comprised of a reversal of provision for loan losses of $10.00 million and a provision for unfunded commitments of $1.97 million. The Company's provision for credit losses in the fourth quarter of 2020 reflected the improved economic outlook for our markets across Texas and general improvement in overall asset quality.  During the fourth quarter of 2020, net charge-offs totaled $561 thousand compared to $340 thousand in the fourth quarter of 2019. At December 31, 2020, the allowance for credit losses totaled $66.53 million, or 1.29 percent of loans held-for-investment ("loans" hereafter), or 1.42 percent of loans excluding PPP loans, compared to $52.50 million at December 31, 2019, or 1.25 percent of loans. Additionally, the reserve for unfunded commitments totaled $5.49 million at December 31, 2020 compared to $809 thousand at December 31, 2019.  Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.83 percent at December 31, 2020, compared with 0.61 percent at December 31, 2019. Classified loans totaled $197.45 million at December 31, 2020, compared to $140.66 million at December 31, 2019.  

During 2020, the Company offered deferral and extensions of principal and/or interest payments to selected borrowers on a case-by-case basis, considering the current and projected profile of the borrower.  At December 31, 2020, the Company had approximately 59 loans totaling $2.69 million subject to deferral and extension agreements compared to 122 loans totaling $18.65 million at September 30, 2020.

At December 31, 2020, loans with oil and gas industry exposure totaled $106.24 million, or 2.27 percent of outstanding loans, excluding PPP loans. These loans comprised $13.30 million of classified loans including $4.77 million in nonaccrual loans. Net charge-offs related to this portfolio totaled $825 thousand for the year ended December 31, 2020.

In addition, at December 31, 2020, loans in the retail/restaurant/hospitality industries totaled $359.33 million, or 7.67 percent, of the Company's outstanding loans, excluding PPP loans. These loans comprised $31.19 million of classified loans, including $5.98 million in nonaccrual loans.  Net charge-offs related to this portfolio totaled $895 thousand for the year ended December 31, 2020.

Noninterest income in the fourth quarter of 2020 rose to $35.71 million from $27.35 million for the fourth quarter of 2019, as a result of the following:

• Trust fees increased to $7.67 million in the fourth quarter of 2020 from $7.34 million in the fourth quarter of 2019. The fair value of trust assets managed increased to $7.51 billion, up 11.33 percent at December 31, 2020 from $6.75 billion at December 31, 2019.
• Service charges on deposits were $5.33 million in the fourth quarter of 2020 compared with $5.86 million in the fourth quarter of 2019.
• ATM, interchange and credit card fees increased to $8.38 million in the fourth quarter of 2020 from $7.94 million in the fourth quarter of 2019, driven by continued growth in the number of debit cards issued and customer utilization.
• Mortgage income increased to $11.12 million compared with $4.22 million in the fourth quarter of 2019 due to a significant increase in the volume of loans originated. The Company's mortgage pipeline increased to $198.46 million at December 31, 2020, when compared to $45.46 million at December 31, 2019.
• The Company originated seven loans totaling $141.95 million ($7.10 million retained on the balance sheet, net of the 95% participations sold to the Federal Reserve), in Main Street Lending loans and recognized fees of $1.07 million during the fourth quarter ($1.40 million for the year), which are included in other noninterest income.

Noninterest expense for the fourth quarter of 2020 totaled $63.71 million compared to $51.94 million in the fourth quarter of 2019, as a result of the following:

• Salary, commissions and employee benefit costs totaled $41.02 million for the fourth quarter of 2020, compared to $31.64 million in the fourth quarter of 2019. The increase over the prior year was primarily driven by the acquisition, annual merit-based pay increases, higher mortgage related commissions, and increases in the fourth quarter of 2020 to incentive compensation based on the overall 2020 operating results. Additionally, the fourth quarter of 2019 included $1.70 million charge related to the termination of an acquired pension plan.
• Noninterest expense in the fourth quarter of 2020 included merger related costs totaling $475 thousand, and $4.88 million for the year ended December 31, 2020, as a result of The Bank & Trust acquisition, while no significant conversion related costs were incurred in the fourth quarter or year ended December 31, 2019.

The Company's efficiency ratio was 45.49 percent for 2020 compared to 48.61 percent for 2019.

As of December 31, 2020, consolidated assets for the Company totaled $10.90 billion compared to $8.26 billion at December 31, 2019. Loans totaled $5.17 billion at December 31, 2020, compared with loans of $4.19 billion at December 31, 2019.  During the fourth quarter of 2020, loans, excluding PPP loans, grew $97.42 million, or 8.44 percent annualized, from September 30, 2020 balances. Deposits totaled $8.68 billion at December 31, 2020, compared to $6.60 billion at December 31, 2019, driven by organic growth and the acquisition.

Shareholders' equity rose to $1.68 billion as of December 31, 2020, compared to $1.23 billion at December 31, 2019, primarily from The Bank & Trust acquisition, undistributed earnings and the net increase in the net unrealized gain on investment securities while tangible book value per common share increased to $9.57 at December 31, 2020 compared to $7.75 at December 31, 2019, representing a 23.48 percent increase. At December 31, 2020, the Company's capital ratios significantly exceeded all well-capitalized requirements.

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.

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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
				2020												2019
ASSETS				Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Cash and due from banks			$	211,113		$	175,088		$	188,373		$	191,486		$	231,534
Interest-bearing deposits in banks				517,971			58,933			196,426			76,378			47,920
Federal funds sold				-			-			-			-			3,150
Investment securities				4,393,029			4,431,280			4,118,863			4,107,069			3,413,317
Loans, held-for-investment				5,171,033			5,293,679			5,253,067			4,639,389			4,194,969
	Allowance for loan losses			(66,534)			(76,038)			(68,947)			(60,440)			(52,499)
Net loans, held-for-investment				5,104,499			5,217,641			5,184,120			4,578,949			4,142,470
Loans, held-for-sale				83,969			101,055			66,370			42,034			28,228
Premises and equipment, net				142,269			141,002			138,933			139,554			131,022
Goodwill				313,481			313,481			313,481			312,842			171,565
Other intangible assets				4,911			5,394			5,884			6,392			2,102
Other assets				133,258			123,778			127,367			246,387			90,919
	Total assets		$	10,904,500		$	10,567,652		$	10,339,817		$	9,701,091		$	8,262,227
LIABILITIES AND SHAREHOLDERS'  EQUITY
Noninterest-bearing deposits			$	2,982,697		$	2,950,407		$	2,941,679		$	2,288,597		$	2,065,128
Interest-bearing deposits				5,693,120			5,344,481			5,215,963			4,921,869			4,538,678
	Total deposits			8,675,817			8,294,888			8,157,642			7,210,466			6,603,806
Borrowings				430,093			503,163			449,224			857,871			381,356
Other liabilities				120,400			150,100			150,502			106,392			49,868
Shareholders' equity				1,678,190			1,619,501			1,582,449			1,526,362			1,227,197
	Total liabilities and shareholders' equity		$	10,904,500		$	10,567,652		$	10,339,817		$	9,701,091		$	8,262,227
			Quarter Ended
				2020												2019
INCOME STATEMENTS				Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Interest income			$	92,457		$	91,373		$	92,197		$	88,100		$	82,123
Interest expense				1,920			2,163			2,962			7,198			6,801
Net interest income				90,537			89,210			89,235			80,902			75,322
Provision for credit losses				(8,033)			9,000			8,700			9,850			950
Net interest income after provisions for credit losses				98,570			80,210			80,535			71,052			74,372
Noninterest income				35,709			38,575			36,919			28,732			27,347
Noninterest expense				63,705			55,593			53,321			55,318			51,938
	Net income before income taxes			70,574			63,192			64,133			44,466			49,781
Income tax expense				12,099			10,335			10,663			7,234			8,393
	Net income		$	58,475		$	52,857		$	53,470		$	37,232		$	41,388
PER COMMON SHARE DATA
Net income - basic			$	0.41		$	0.37		$	0.38		$	0.26		$	0.30
Net income - diluted				0.41			0.37			0.38			0.26			0.30
Cash dividends declared				0.13			0.13			0.13			0.12			0.12
Book value				11.80			11.40			11.14			10.73			9.03
Tangible book value				9.57			9.15			8.89			8.48			7.75
Market value			$	36.17		$	27.91		$	28.89		$	26.84		$	35.10
Shares outstanding - end of period				142,161,834			142,121,595			142,035,396			142,314,930			135,891,755
Average outstanding shares - basic				142,057,705			141,980,707			141,973,522			142,118,864			135,747,381
Average outstanding shares - diluted				142,644,088			142,529,242			142,454,083			142,735,208			136,539,286
PERFORMANCE RATIOS
Return on average assets				2.19	%		2.01	%		2.06	%		1.63	%		2.01	%
Return on average equity				14.27			13.14			14.00			10.11			13.56
Return on average tangible equity				17.74			16.41			17.67			12.89			15.83
Net interest margin (tax equivalent)				3.75			3.75			3.78			3.91			3.99
Efficiency ratio				49.15			42.45			41.32			49.63			49.75
			Year Ended
			Dec. 31,
INCOME STATEMENTS				2020			2019
Interest income			$	364,128		$	319,192
Interest expense				14,243			30,102
Net interest income				349,885			289,090
Provision for credit losses				19,517			2,965
Net interest income after provisions for credit losses				330,368			286,125
Noninterest income				139,935			108,428
Noninterest expense				227,938			196,521
	Net income before income taxes			242,365			198,032
Income tax expense				40,331			33,220
	Net income		$	202,034		$	164,812
PER COMMON SHARE DATA
Net income - basic			$	1.42		$	1.22
Net income - diluted				1.42			1.21
Cash dividends declared				0.51			0.47
Book value				11.80			9.03
Tangible book value				9.57			7.75
Market value			$	36.17		$	35.10
Shares outstanding - end of period				142,161,834			135,891,755
Average outstanding shares - basic				142,032,420			135,647,354
Average outstanding shares - diluted				142,544,991			136,346,019
PERFORMANCE RATIOS
Return on average assets				1.98	%		2.08	%
Return on average equity				12.93			14.37
Return on average tangible equity				16.25			16.95
Net interest margin (tax equivalent)				3.79			3.98
Efficiency ratio				45.49			48.61

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
			Quarter Ended
				2020												2019
ALLOWANCE FOR LOAN LOSSES				Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Balance at beginning of period			$	76,038		$	68,947		$	60,440		$	52,499		$	51,889
Loans charged off				(1,339)			(853)			(894)			(2,227)			(834)
Loan recoveries				778			444			701			318			494
Net recoveries (charge-offs)				(561)			(409)			(193)			(1,909)			(340)
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				(10,002)			7,500			8,700			9,850			950
Balance at end of period			$	66,534		$	76,038		$	68,947		$	60,440		$	52,499
ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period			$	2,309		$	809		$	809		$	809		$	809
Initial adoption of ASU 2016-13 (CECL) - recorded in retained earnings				1,208			-			-			-			-
Provision for unfunded commitments				1,969			1,500			-			-			-
Balance at end of period			$	5,486		$	2,309		$	809		$	809		$	809
Allowance for loan losses /
period-end loans held-for-investment				1.29	%		1.44	%		1.31	%		1.30	%		1.25	%
Allowance for loan losses /
nonperforming loans				155.61			177.99			174.83			153.16			212.02
Net charge-offs / average total loans
(annualized)				0.04			0.03			0.01			0.16			0.03
SUMMARY OF LOAN CLASSIFICATION
Special Mention			$	56,585		$	66,033		$	63,489		$	87,099		$	63,371
Substandard				140,866			136,010			137,408			103,249			77,284
Doubtful				-			-			-			-			-
	Total classified loans		$	197,451		$	202,043		$	200,897		$	190,348		$	140,655
NONPERFORMING ASSETS
Nonaccrual loans			$	42,619		$	42,673		$	39,320		$	39,226		$	24,582
Accruing troubled debt restructured loans				24			25			25			26			26
Accruing loans 90 days past due				113			23			92			209			153
	Total nonperforming loans			42,756			42,721			39,437			39,461			24,761
Foreclosed assets				142			331			287			983			1,009
	Total nonperforming assets		$	42,898		$	43,052		$	39,724		$	40,444		$	25,770
As a % of loans held-for-investment and foreclosed assets				0.83	%		0.81	%		0.76	%		0.87	%		0.61	%
As a % of end of period total assets				0.39			0.41			0.38			0.42			0.31
OIL AND GAS PORTFOLIO INFORMATION *
Oil and gas loans			$	106,237		$	118,567		$	128,143		$	117,223		$	119,789
Oil and gas loans as a % of total loans held-for-investment				2.27	%		2.58	%		2.82	%		2.53	%		2.86	%
Classified oil and gas loans				13,298			26,823			28,366			22,032			7,041
Nonaccrual oil and gas loans				4,774			6,800			3,702			3,477			481
Net charge-offs for oil and gas loans				24			-			195			606			-
* Excluding PPP loans
RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *
Retail loans			$	216,244		$	229,386		$	216,244		$	217,380
Restaurant loans				48,618			39,523			46,418			25,570
Hotel loans				71,716			63,273			51,957			46,690
Other hospitality loans				21,970			26,041			23,230			8,470
Travel loans				780			801			908			937
	Total Retail/Restaurant/Hospitality loans		$	359,328		$	359,024		$	338,757		$	299,047
Retail/Restaurant/Hospitality loans as a % of total loans held-for-investment				7.67	%		7.82	%		7.45	%		6.45	%
Classified Retail/Restaurant/Hospitality loans			$	31,192		$	28,171		$	15,837		$	5,680
Nonaccrual Retail/Restaurant/Hospitality loans				5,975			5,689			5,752			867
Net Charge-offs for Retail/Restaurant/Hospitality loans				561			26			178			130
* Excluding PPP loans
CAPITAL RATIOS
Common equity Tier 1 capital ratio				20.79	%		20.56	%		20.78	%		19.55	%		20.06	%
Tier 1 capital ratio				20.79			20.56			20.78			19.55			20.06
Total capital ratio				22.03			21.82			22.03			20.65			21.13
Tier 1 leverage ratio				11.86			11.65			11.25			12.49			12.60
Tangible common equity ratio				12.71			12.61			12.00			13.09			12.43
Equity/Assets ratio				15.39			15.33			15.30			15.73			14.85
			Quarter Ended
				2020												2019
NONINTEREST INCOME				Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Trust fees			$	7,672		$	7,461		$	6,961		$	7,437		$	7,344
Service charges on deposits				5,330			5,009			4,318			5,915			5,861
ATM, interchange and credit card fees				8,376			8,644			8,049			7,400			7,943
Gain on sale and fees on mortgage loans				11,116			15,228			13,676			3,852			4,216
Net gain on sale of available-for-sale securities				23			36			1,512			2,062			5
Net gain (loss) on sale of foreclosed assets				87			19			52			1			81
Net gain (loss) on sale of assets				22			(2)			(24)			116			78
Interest on loan recoveries				235			202			154			265			277
Other noninterest income				2,848			1,978			2,221			1,684			1,542
	Total noninterest income		$	35,709		$	38,575		$	36,919		$	28,732		$	27,347
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing			$	34,773		$	32,104		$	28,836		$	28,670		$	27,175
Cost related to termination of pension plan				-			-			-			-			1,700
Profit sharing expense				6,245			1,545			1,978			972			2,766
Net occupancy expense				3,067			3,193			3,101			3,027			2,784
Equipment expense				2,154			2,157			2,010			2,075			2,043
FDIC insurance premiums				663			587			463			45			-
ATM, interchange and credit card expenses				2,811			2,829			2,610			2,985			2,419
Legal, tax and professional fees				2,302			2,615			2,931			2,921			2,353
Audit fees				407			526			739			411			233
Printing, stationery and supplies				449			615			533			566			465
Amortization of intangible assets				483			490			508			509			238
Advertising and public relations				1,600			797			1,011			1,195			1,791
Operational and other losses				537			621			728			576			626
Software amortization and expense				2,563			2,265			2,010			2,024			2,158
Other noninterest expense				5,651			5,249			5,863			9,342			5,187
	Total noninterest expense		$	63,705		$	55,593		$	53,321		$	55,318		$	51,938
TAX EQUIVALENT YIELD ADJUSTMENT			$	3,355		$	3,170		$	2,902		$	1,834		$	1,732
			Year Ended
			Dec. 31,
NONINTEREST INCOME				2020			2019
Trust fees			$	29,531		$	28,401
Service charges on deposits				20,572			22,039
ATM, interchange and credit card fees				32,469			29,863
Gain on sale and fees on mortgage loans				43,872			18,144
Net gain (loss) on sale of available-for-sale securities				3,633			733
Net gain (loss) on sale of foreclosed assets				159			274
Net gain (loss) on sale of assets				112			319
Interest on loan recoveries				856			2,092
Other noninterest income				8,731			6,563
	Total noninterest income		$	139,935		$	108,428
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing			$	124,383		$	104,675
Cost related to termination of pension plan				-			2,673
Profit sharing expense				10,740			7,661
Net occupancy expense				12,388			11,156
Equipment expense				8,396			9,052
FDIC insurance premiums				1,758			1,091
ATM, interchange and credit card expenses				11,235			9,856
Legal, tax and professional fees				10,769			9,082
Audit  fees				2,083			1,445
Printing, stationery and supplies				2,163			1,812
Amortization of intangible assets				1,990			1,016
Advertising and public relations				4,603			6,813
Operational and other losses				2,462			1,879
Software amortization and expense				8,862			7,305
Other noninterest expense				26,106			21,005
	Total noninterest expense		$	227,938		$	196,521
TAX EQUIVALENT YIELD ADJUSTMENT			$	11,260		$	6,791

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
			Three Months Ended												Three Months Ended
			Dec. 31, 2020												Sept. 30, 2020
				Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
				Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold			$	-		$	-			-	%				$	2,009		$	3			0.51	%
Interest-bearing deposits in nonaffiliated banks				195,637			50			0.10						223,104			59			0.10
Taxable securities				2,086,419			10,708			2.05						2,187,547			12,063			2.21
Tax exempt securities				2,318,912			16,733			2.89						2,058,032			15,737			3.06
Loans				5,356,229			68,321			5.07						5,334,174			66,681			4.97
Total interest-earning assets				9,957,197		$	95,812			3.83	%					9,804,866		$	94,543			3.84	%
Noninterest-earning assets				674,229												671,374
	Total assets		$	10,631,426											$	10,476,240
Interest-bearing liabilities:
Deposits			$	5,479,873		$	1,826			0.13	%				$	5,270,600		$	2,064			0.16	%
Borrowings				428,117			94			0.09						482,555			99			0.08
Total interest-bearing liabilities				5,907,990		$	1,920			0.13	%					5,753,155		$	2,163			0.15	%
Noninterest-bearing liabilities				3,093,637												3,122,995
Shareholders' equity				1,629,799												1,600,090
	Total liabilities and shareholders' equity		$	10,631,426											$	10,476,240
Net interest income and margin (tax equivalent)						$	93,892			3.75	%							$	92,380			3.75	%
			Three Months Ended												Three Months Ended
			June 30, 2020												Mar. 31, 2020
				Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
				Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold			$	840		$	1			0.51	%				$	2,712		$	10			1.50	%
Interest-bearing deposits in nonaffiliated banks				352,628			86			0.10						220,906			745			1.36
Taxable securities				2,399,364			14,030			2.34						2,263,329			14,655			2.59
Tax exempt securities				1,800,339			14,733			3.27						1,346,842			11,200			3.33
Loans				5,248,052			66,249			5.08						4,667,436			63,323			5.46
Total interest-earning assets				9,801,223		$	95,099			3.90	%					8,501,225		$	89,933			4.25	%
Noninterest-earning assets				663,595												692,432
	Total assets		$	10,464,818											$	9,193,657
Interest-bearing liabilities:
Deposits			$	5,135,772		$	2,550			0.20	%				$	4,904,087		$	6,680			0.55	%
Borrowings				877,076			412			0.19						460,605			517			0.45
Total interest-bearing liabilities				6,012,848		$	2,962			0.20	%					5,364,692		$	7,197			0.54	%
Noninterest-bearing liabilities				2,915,461												2,348,485
Shareholders' equity				1,536,509												1,480,480
	Total liabilities and shareholders' equity		$	10,464,818											$	9,193,657
Net interest income and margin (tax equivalent)						$	92,137			3.78	%							$	82,736			3.91	%
			Three Months Ended
			Dec. 31, 2019
				Average			Tax Equivalent			Yield /
				Balance			Interest			Rate
Interest-earning assets:
Federal funds sold			$	1,198		$	6			2.03	%
Interest-bearing deposits in nonaffiliated banks				54,841			218			1.58
Taxable securities				2,185,777			14,165			2.59
Tax exempt securities				1,243,487			10,695			3.44
Loans				4,185,716			58,771			5.57
Total interest-earning assets				7,671,019		$	83,855			4.34	%
Noninterest-earning assets				500,924
	Total assets		$	8,171,943
Interest-bearing liabilities:
Deposits			$	4,336,063		$	6,052			0.55	%
Borrowings				417,316			749			0.71
Total interest-bearing liabilities				4,753,379		$	6,801			0.57	%
Noninterest-bearing liabilities				2,207,508
Shareholders' equity				1,211,056
	Total liabilities and shareholders' equity		$	8,171,943
Net interest income and margin (tax equivalent)						$	77,054			3.99	%
			Year Ended												Year Ended
			Dec. 31, 2020												Dec. 31, 2019
				Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
				Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold			$	1,388		$	14			0.99	%				$	3,622		$	98			2.70	%
Interest-bearing deposits in nonaffiliated banks				249,698			939			0.38						80,808			1,794			2.22
Taxable securities				2,233,634			51,456			2.30						2,090,490			55,670			2.66
Tax exempt securities				1,882,711			58,403			3.10						1,192,908			42,664			3.58
Loans				5,152,531			264,576			5.13						4,074,667			225,757			5.54
Total interest-earning assets				9,519,962		$	375,388			3.94	%					7,442,495		$	325,983			4.38	%
Noninterest-earning assets				673,553												496,627
	Total assets		$	10,193,515											$	7,939,122
Interest-bearing liabilities:
Deposits			$	5,198,554		$	13,119			0.25	%				$	4,208,666		$	27,122			0.64	%
Borrowings				561,505			1,124			0.20						398,142			2,980			0.75
Total interest-bearing liabilities				5,760,059		$	14,243			0.25	%					4,606,808		$	30,102			0.65	%
Noninterest-bearing liabilities				2,871,446												2,185,747
Shareholders' equity				1,562,010												1,146,567
	Total liabilities and shareholders' equity		$	10,193,515											$	7,939,122
Net interest income and margin (tax equivalent)						$	361,145			3.79	%							$	295,881			3.98	%

 

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SOURCE First Financial Bankshares, Inc.

FAQ

What were First Financial Bankshares' Q4 2020 earnings results?

First Financial Bankshares reported Q4 2020 earnings of $58.48 million, or $0.41 per diluted share.

How did First Financial Bankshares' annual earnings for 2020 compare to 2019?

In 2020, First Financial Bankshares had total earnings of $202.03 million, a 22.58% increase compared to $164.81 million in 2019.

What was the impact of the TB&T Bancshares acquisition on First Financial Bankshares?

The TB&T Bancshares acquisition contributed to First Financial's earnings growth and asset increase throughout 2020.

How did net interest income change for First Financial Bankshares in Q4 2020?

Net interest income for Q4 2020 increased to $90.54 million, up $15.22 million from the previous year.

What is the outlook for First Financial Bankshares in 2021?

First Financial Bankshares expressed optimism about its growth and performance outlook for 2021.