First Financial Bankshares Announces Second Quarter Earnings Results

Rhea-AI Summary

First Financial Bankshares reported strong second quarter earnings of $53.47 million, up from $42.09 million year-over-year. Earnings per share grew to $0.38 versus $0.31 in Q2 2019. This performance is bolstered by the acquisition of TB&T Bancshares, contributing total assets of $631.26 million. The bank processed nearly 6,500 Paycheck Protection Program loans worth over $700 million, leading to net interest income of $89.24 million. Despite challenges from the pandemic, noninterest income rose to $36.92 million.

Positive

• Earnings increased to $53.47 million, up 27% year-over-year.
• Earnings per share rose to $0.38 from $0.31 a year ago.
• Net interest income increased to $89.24 million, benefiting from PPP participation.
• Noninterest income grew to $36.92 million, up from $27.98 million year-over-year.
• Total assets reached $10.34 billion, compared to $9.70 billion in the previous quarter.

Negative

• Loan losses provision was $8.70 million, reflecting economic uncertainty.
• Nonperforming loans in oil and gas totaled $3.70 million, contributing to overall risk.

ABILENE, Texas, July 23, 2020 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the second quarter of 2020 of $53.47 million when compared with earnings of $42.09 million in the same quarter last year and $37.23 million in the first quarter of 2020. Basic and diluted earnings per share were $0.38 for the second quarter of 2020 compared with $0.31 in the same quarter a year ago and $0.26 for the first quarter of 2020.

All amounts for the three and six-months ended June 30, 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. As of the acquisition date, The Bank & Trust of Bryan/College Station had total assets of $631.26 million, total loans of $455.18 million and total deposits of $548.38 million. The Company recorded a $7.65 million discount on the acquired loan portfolio.

"We are very pleased with our second quarter earnings performance, especially in the current environment of a pandemic, the shutdown of the economy and lower oil and gas prices," said F. Scott Dueser, Chairman, President and CEO. "We could not be prouder of our team that responded quickly to the SBA-PPP program and funded nearly 6,500 loans totaling over $700 million which not only took care of our existing customers but brought many new loan and depository customers from other banks that were not as well prepared to offer the PPP program or chose not to participate at all. We responded to the pandemic by protecting our employees and customers while keeping our doors open and working very long hours to make sure that our customers were taken care of well. At the same time, we had record mortgage closings. Although it was a tough quarter, we navigated well through the challenges and continue to stay TEXAS STRONG."

Overall, net interest income for the second quarter of 2020 increased $8.33 million and $17.62 million from the first quarter of 2020 and the second quarter of 2019, respectively. Net interest income was positively impacted by the Company's participation in the Small Business Administration Paycheck Protection Program (PPP), an increase in investment securities and the reduction in interest rates paid on deposits. The following table summarizes key net interest income and net interest margin metrics for the second and first quarters of 2020 and the second quarter of 2019:

	Three Months Ended (dollars in thousands)
	June 30, 2020			March 31, 2020			June 30, 2019
Interest income	$	92,197		$	88,100		$	79,576
Interest expense		2,962			7,198			7,961
Net interest income		89,235			80,902			71,615
Tax equivalent adjustment (TE)	2,902			1,834			1,664
Net interest income (TE)                    $	92,137		$	82,736		$	73,279
Net interest margin		3.78	%		3.91	%		3.98	%
Impact of accretion on acquired loans	0.04			0.02			0.02
Yield on interest-earning assets	3.90			4.25			4.41
Rate on interest-bearing liabilities	0.20			0.54			0.70
Average earning assets	$	9,801,223		$	8,501,225		$	7,389,258

The Company processed approximately 6,500 PPP loans and funded $703.12 million ($586.03 million in average balances for the second quarter of 2020). The Company received PPP related origination fees totaling approximately $26.07 million and incurred incremental direct origination costs of $3.62 million, both of which have been deferred and are being amortized over the shorter of the repayment period or 24 months, the contractual life of these loans, totaling $2.83 million in the second quarter of 2020.

The provision for loan losses was $8.70 million in the second quarter of 2020 compared with $9.85 million in the first quarter of 2020 and $600 thousand in the second quarter of 2019. The Company's provision for loan losses in the second quarter of 2020 continues to reflect uncertainty surrounding the economic impact caused by the coronavirus (COVID-19) and the decline in oil and gas prices. At June 30, 2020, the allowance for loan losses totaled $68.95 million, or 1.31 percent of loans held for investment, or 1.52 percent of loans held for investment excluding PPP loans, compared to $60.44 million at March 31, 2020, or 1.30 percent of loans held for investment.

Accounting Standards Update (ASU) 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (CECL), became effective for the Company on January 1, 2020. However, the COVID-19 related legislation included an option for entities to delay the implementation of CECL until the earlier of the termination date of the national emergency declaration by the President, or December 31, 2020. The Company elected to delay implementation of CECL and has calculated and recorded the provision for loan losses for the quarter under the incurred loss model that existed prior to CECL.  The CECL related modeling continues to be refined as the Company moves to adopt CECL later this year. 

Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.75 percent at June 30, 2020, compared with 0.86 percent at March 31, 2020, and 0.69 percent at June 30, 2019. Classified loans totaled $200.90 million at June 30, 2020, compared to $190.35 million at March 31, 2020, and $126.04 million at June 30, 2019.

Beginning in mid-March of 2020, the Company began offering deferral and modification of principle and/or interest payments to selected borrowers on a case-by-case basis. At June 30, 2020, the Company had approximately 2,200 loans totaling $468.54 million in outstanding loans subject to deferral and modification agreements, representing 10.30 percent of outstanding loans held for investment, excluding PPP loans.

At June 30, 2020, loans with oil and gas industry exposure, excluding PPP loans, totaled $128.14 million, or 2.78 percent of total loans, excluding PPP loans. These loans comprised $28.37 million of classified loans including $3.70 million in nonperforming loan totals. At June 30, 2020, the Company's allowance for loan loss specific reserves on its total oil and gas loan portfolio totaled 4.17 percent of total oil and gas loans, excluding PPP loans, and net charge-offs totaled $195 thousand and $801 thousand for the three and six-months ended June 30, 2020, respectively.

In addition, at June 30, 2020, loan balances in the retail/restaurant/hospitality industries, excluding PPP loans, totaled $338.76 million or 7.34 percent of the Company's total loans, excluding PPP loans. These loans comprised $15.84 million of classified loans including $5.75 million in nonperforming loan totals.   Net charge-offs related to this portfolio totaled $178 thousand and $308 thousand for the three and six-months ended June 30, 2020, respectively.

Noninterest income in the second quarter of 2020 rose to $36.92 million compared with $27.98 million in the same quarter a year ago. Trust fees decreased $66 thousand to $6.96 million in the second quarter of 2020 compared with $7.03 million in the same quarter last year. The fair value of trust assets managed increased to $6.78 billion from $6.19 billion a year ago. Service charges on deposits decreased to $4.32 million compared with $5.37 million in the same quarter a year ago due largely to the lack of economic activity caused by the pandemic during the second quarter of 2020. ATM, interchange and credit card fees increased 9.48 percent to $8.05 million compared with $7.35 million in the same quarter last year due to continued growth in the number of debit cards issued and our Bryan/College Station acquisition.  Mortgage related income increased 189.68 percent to $13.68 million compared with $4.72 million in the same quarter a year ago due to a significant increase in the volume of loans originated.  The Company's mortgage loan pipeline increased to $182.14 million as of June 30, 2020, when compared to $65.90 million at June 30, 2019. Also included in noninterest income during the second quarter of 2020 was a gain on sale of securities of $1.51 million compared to $676 thousand from the same quarter a year ago.

Noninterest expense for the second quarter of 2020 totaled $53.32 million compared to $48.30 million in the second quarter of 2019. The Company's efficiency ratio in the second quarter of 2020 was 41.32 percent compared with 47.71 percent in the same quarter last year. Included in noninterest expense in the second quarter of 2020 were salary and employee benefit costs of $30.81 million compared to $27.39 million in the same quarter a year ago, primarily driven by the Bryan/College Station acquisition, annual merit-based pay increases and higher mortgage related commissions, offset by the deferral of $3.62 million in PPP loan origination costs. Also included in noninterest expense in the second quarter of 2020 were conversion related costs totaling $583.46 thousand as a result of the Bryan/College Station acquisition.

As of June 30, 2020, consolidated assets for the Company totaled $10.34 billion compared to $9.70 billion at March 31, 2020 and $7.98 billion at June 30, 2019. Loans totaled $5.32 billion at June 30, 2020, compared with loans of $4.68 billion at March 31, 2020, and $4.06 billion at June 30, 2019. Deposits totaled $8.16 billion at June 30, 2020, compared to $7.21 billion at March 31, 2020, and $6.37 billion at June 30, 2019. Additional information related to the Company's loan and deposit balances are as follows:

	Three Months Ended (dollars in thousands)
Loans	June 30, 2020			March 31, 2020			June 30, 2019
Loans HFI, excluding PPP loans	$	4,549,950		$	4,639,389		$	4,040,952
PPP loans, net of unearned income	703,117			-			-
Total loans held-for-investment		5,253,067			4,639,389			4,040,952
Loans held-for-sale		66,370			42,034			22,305
Allowance for loan losses	68,947			60,440			51,820
Deposits
Noninterest-bearing deposits	$	2,941,679		$	2,288,597		$	2,167,552
Interest-bearing deposits without stated maturity	4,749,841			4,456,061			3,768,703
Time deposits		466,122			465,808			433,511
Total deposits	$	8,157,642		$	7,210,466		$	6,369,766

Shareholders' equity rose to $1.58 billion as of June 30, 2020, compared with $1.53 billion at March 31, 2020, and $1.16 billion at June 30, 2019, primarily from the Bryan/College Station acquisition. At June 30, 2020, the Company's capital ratios significantly exceeded all well-capitalized requirements.

About First Financial Bankshares:

Headquartered in Abilene, Texas, First Financial Bankshares 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 nine locations and First Technology Services, Inc., a technology operating company.

The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN.  For more information about First Financial, please visit our website at http://www.ffin.com.

Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect", "plan", "anticipate", "target", "forecast" and "goal".  Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.  Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the  Federal Reserve Board; 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/Filings" on the Company's Web site 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		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Cash and due from banks	$	188,373		$	191,486		$	231,534		$	198,855		$	178,345
Interest-bearing deposits in banks		196,426			76,378			47,920			31,410			128,652
Interest-bearing time deposits in banks		-			-			-			-			960
Federal funds sold		-			-			3,150			-			700
Investment securities		4,118,863			4,107,069			3,413,317			3,397,156			3,259,492
Loans			5,319,437			4,681,423			4,223,197			4,140,815			4,063,257
	Allowance for loan losses		(68,947)			(60,440)			(52,499)			(51,889)			(51,820)
Net loans		5,250,490			4,620,983			4,170,698			4,088,926			4,011,437
Premises and equipment		138,933			139,554			131,022			132,367			134,322
Goodwill		313,481			312,842			171,565			171,565			171,565
Other intangible assets		5,884			6,392			2,102			2,340			2,586
Other assets		127,367			246,387			90,919			91,220			91,234
	Total assets	$	10,339,817		$	9,701,091		$	8,262,227		$	8,113,839		$	7,979,293
LIABILITIES AND SHAREHOLDERS'  EQUITY
Noninterest-bearing deposits	$	2,941,679		$	2,288,597		$	2,065,128		$	2,210,997		$	2,167,552
Interest-bearing deposits		5,215,963			4,921,869			4,538,678			4,186,686			4,202,214
	Total deposits		8,157,642			7,210,466			6,603,806			6,397,683			6,369,766
Borrowings		449,224			857,871			381,356			400,155			362,005
Other liabilities		150,502			106,392			49,868			110,903			82,774
Shareholders' equity		1,582,449			1,526,362			1,227,197			1,205,098			1,164,748
	Total liabilities and shareholders' equity	$	10,339,817		$	9,701,091		$	8,262,227		$	8,113,839		$	7,979,293
		Quarter Ended
			2020			2019
INCOME STATEMENTS		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Interest income	$	92,197		$	88,100		$	82,123		$	80,591		$	79,576
Interest expense		2,962			7,198			6,801			7,953			7,961
Net interest income		89,235			80,902			75,322			72,638			71,615
Provision for loan losses		8,700			9,850			950			450			600
Net interest income after provision for loan losses		80,535			71,052			74,372			72,188			71,015
Noninterest income		36,919			28,732			27,347			28,669			27,976
Noninterest expense		53,321			55,318			51,938			48,910			48,304
	Net income before income taxes		64,133			44,466			49,781			51,947			50,687
Income tax expense		10,663			7,234			8,393			8,867			8,594
	Net income	$	53,470		$	37,232		$	41,388		$	43,080		$	42,093
PER COMMON SHARE DATA
Net income - basic	$	0.38		$	0.26		$	0.30		$	0.32		$	0.31
Net income - diluted		0.38			0.26			0.30			0.32			0.31
Cash dividends declared		0.13			0.12			0.12			0.12			0.12
Book Value		11.14			10.73			9.03			8.87			8.58
Market Value	$	28.89		$	26.84		$	35.10		$	33.33		$	30.79
Shares outstanding - end of period		142,035,396			142,314,930			135,891,755			135,822,456			135,809,224
Average outstanding shares - basic		141,973,522			142,118,864			135,747,381			135,693,901			135,650,599
Average outstanding shares - diluted		142,454,083			142,735,208			136,539,286			136,369,328			136,218,235
PERFORMANCE RATIOS
Return on average assets		2.06	%		1.63	%		2.01	%		2.15	%		2.14	%
Return on average equity		14.00			10.11			13.56			14.46			15.04
Return on average tangible equity		17.67			12.89			15.83			16.96			17.81
Net interest margin (tax equivalent)		3.78			3.91			3.99			3.94			3.98
Efficiency ratio		41.32			49.63			49.75			47.54			47.71
		Six Months Ended
		June 30,
INCOME STATEMENTS		2020			2019
Interest income	$	180,297		$	156,477
Interest expense		10,159			15,348
Net interest income		170,138			141,129
Provision for loan losses		18,550			1,565
Net interest income after provision for loan losses		151,588			139,564
Noninterest income		65,651			52,413
Noninterest expense		108,640			95,673
	Net income before income taxes		108,599			96,304
Income tax expense		17,898			15,959
	Net income	$	90,701		$	80,345
PER COMMON SHARE DATA
Net income - basic	$	0.64		$	0.59
Net income - diluted		0.64			0.59
Cash dividends declared		0.25			0.23
Book Value		11.14			8.58
Market Value	$	28.89		$	30.79
Shares outstanding - end of period		142,035,396			135,809,224
Average outstanding shares - basic		142,045,779			135,572,859
Average outstanding shares - diluted		142,519,308			136,195,811
PERFORMANCE RATIOS
Return on average assets		1.86	%		2.08	%
Return on average equity		12.09			14.78
Return on average tangible equity		15.33			17.58
Net interest margin (tax equivalent)		3.84			3.99
Efficiency ratio		45.17			48.56

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
		Quarter Ended
			2020			2019
ALLOWANCE FOR LOAN LOSSES		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Balance at beginning of period	$	60,440		$	52,499		$	51,889		$	51,820		$	51,585
Loans charged off		(894)			(2,227)			(834)			(767)			(1,061)
Loan recoveries		701			318			494			386			696
Net recoveries (charge-offs)		(193)			(1,909)			(340)			(381)			(365)
Provision for loan losses		8,700			9,850			950			450			600
Balance at end of period	$	68,947		$	60,440		$	52,499		$	51,889		$	51,820
Allowance for loan losses /
period-end loans		1.30	%		1.29	%		1.24	%		1.25	%		1.28	%
Allowance for loan losses /
nonperforming loans		174.83			153.16			212.02			200.75			190.66
Net charge-offs / average loans
(annualized)		0.01			0.16			0.03			0.04			0.04
SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	63,489		$	87,099		$	63,371		$	46,300		$	51,490
Substandard		137,408			103,249			77,284			72,904			74,550
Doubtful		-			-			-			-			-
	Total classified loans	$	200,897		$	190,348		$	140,655		$	119,204		$	126,040
NONPERFORMING ASSETS
Nonaccrual loans	$	39,320		$	39,226		$	24,582		$	25,717		$	26,408
Accruing troubled debt restructured loans		25			26			26			27			471
Accruing loans 90 days past due		92			209			153			104			300
	Total nonperforming loans		39,437			39,461			24,761			25,848			27,179
Foreclosed assets		287			983			1,009			1,364			681
	Total nonperforming assets	$	39,724		$	40,444		$	25,770		$	27,212		$	27,860
As a % of loans and foreclosed assets		0.75	%		0.86	%		0.61	%		0.66	%		0.69	%
As a % of end of period total assets		0.38			0.42			0.31			0.34			0.35
OIL AND GAS PORTFOLIO INFORMATION *
Oil and gas loans	$	128,143		$	117,223		$	119,789		$	122,908		$	107,097
Oil and gas loans as a % of total loans		2.78	%		2.50	%		2.84	%		2.97	%		2.64	%
Classified oil and gas loans		28,366			22,032			7,041			7,953			3,438
Nonaccrual oil and gas loans		3,702			3,477			481			519			621
Net charge-offs for oil and gas loans		195			606			-			-			-
Allowance for oil and gas loans as a % of oil and gas loans		4.17	%		4.46	%		2.54	%		2.87	%		2.95	%
* Excluding PPP loans
RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *
Retail loans	$	216,244		$	217,380
Restaurant loans		46,418			25,570
Hotel loans		51,957			46,690
Other hospitality loans		23,230			8,470
Travel loans		908			937
	Total Retail/Restaurant/Hospitality loans	$	338,757		$	299,047
Retail/Restaurant/ Hospitality loans as a % of total loans		7.34	%		6.39	%
Classifieds Retail/Restaurant/Hospitality loans	$	15,837		$	5,680
Nonaccruals Retail/Restaurant/ Hospitality loans		5,752			867
Net Charge-offs for Retail/Restaurant/Hospitality loans		178			130
* Excluding PPP loans
CAPITAL RATIOS
Common equity Tier 1 capital ratio		20.78	%		19.55	%		20.06	%		20.05	%		20.04	%
Tier 1 capital ratio		20.78			19.55			20.06			20.05			20.04
Total capital ratio		22.03			20.65			21.13			21.14			21.16
Tier 1 leverage ratio		11.25			12.49			12.60			12.58			12.29
Tangible Common Equity ratio		12.00			13.09			12.43			12.94			12.31
Equity/Assets ratio		15.30			15.73			14.85			14.85			14.60
		Quarter Ended
			2020			2019
NONINTEREST INCOME		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Trust fees	$	6,961		$	7,437		$	7,344		$	7,051		$	7,027
Service charges on deposits		4,318			5,915			5,861			5,629			5,374
ATM, interchange and credit card fees		8,049			7,400			7,943			7,728			7,352
Gain on sale and fees on mortgage loans		13,676			3,852			4,216			5,733			4,721
Net gain on sale of available-for-sale securities		1,512			2,062			5			52			676
Net gain (loss) on sale of foreclosed assets		52			1			81			71			53
Net gain (loss) on sale of assets		(24)			116			78			235			6
Interest on loan recoveries		154			265			277			575			903
Other noninterest income		2,221			1,684			1,542			1,595			1,864
	Total noninterest income	$	36,919		$	28,732		$	27,347		$	28,669		$	27,976
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	28,836		$	28,670		$	27,175		$	27,030		$	25,510
Cost related to termination of pension plan		-			-			1,700			-			-
Profit sharing expense		1,978			972			2,766			1,520			1,884
Net occupancy expense		3,101			3,027			2,784			2,830			2,779
Equipment expense		2,010			2,075			2,043			2,225			2,331
FDIC insurance premiums		463			45			-			15			538
ATM, interchange and credit card expenses		2,610			2,985			2,419			2,627			2,427
Legal, tax and professional fees		2,931			2,921			2,353			2,274			2,302
Audit fees		739			411			233			341			455
Printing, stationery and supplies		533			566			465			480			502
Amortization of intangible assets		508			509			238			246			264
Advertising and public relations		1,011			1,195			1,791			1,745			1,630
Operational and other losses		728			576			626			507			480
Software amortization and expense		2,010			2,024			2,158			1,767			1,783
Other noninterest expense		5,863			9,342			5,187			5,303			5,419
	Total noninterest expense	$	53,321		$	55,318		$	51,938		$	48,910		$	48,304
TAX EQUIVALENT YIELD ADJUSTMENT	$	2,902		$	1,834		$	1,732		$	1,575		$	1,664
		Six Months Ended
		June 30,
NONINTEREST INCOME		2020			2019
Trust fees	$	14,398		$	14,006
Service charges on deposits		10,233			10,550
ATM, interchange and credit card fees		15,449			14,192
Gain on sale and fees on mortgage loans		17,528			8,195
Net gain (loss) on sale of available-for-sale securities		3,574			676
Net gain (loss) on sale of foreclosed assets		53			122
Net gain (loss) on sale of assets		92			6
Interest on loan recoveries		419			1,241
Other noninterest income		3,905			3,425
	Total noninterest income	$	65,651		$	52,413
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	57,506		$	50,543
Loss from partial settlement of pension plan		-			900
Profit sharing expense		2,950			3,375
Net occupancy expense		6,128			5,542
Equipment expense		4,085			4,784
FDIC insurance premiums		508			1,076
ATM, interchange and credit card expenses		5,595			4,810
Legal, tax and professional fees		5,852			4,457
Audit  fees		1,150			872
Printing, stationery and supplies		1,099			868
Amortization of intangible assets		1,017			532
Advertising and public relations		2,206			3,278
Operational and other losses		1,304			746
Software amortization and expense		4,034			3,380
Other noninterest expense		15,206			10,510
	Total noninterest expense	$	108,640		$	95,673
TAX EQUIVALENT YIELD ADJUSTMENT	$	4,735		$	3,484

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
		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				Three Months Ended
		Dec. 31, 2019				Sept. 30, 2019
			Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
			Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	1,198		$	6			2.03	%				$	3,006		$	19			2.52	%
Interest-bearing deposits in nonaffiliated banks		54,841			218			1.58						61,465			363			2.34
Taxable securities		2,185,777			14,165			2.59						2,183,930			14,292			2.62
Tax exempt securities		1,243,487			10,695			3.44						1,132,279			10,075			3.56
Loans		4,185,716			58,771			5.57						4,094,235			57,417			5.56
Total interest-earning assets		7,671,019		$	83,855			4.34	%					7,474,915		$	82,166			4.36	%
Noninterest-earning assets		500,924												489,446
	Total assets	$	8,171,943											$	7,964,361
Interest-bearing liabilities:
Deposits	$	4,336,063		$	6,052			0.55	%				$	4,156,850		$	7,123			0.68	%
Borrowings		417,316			749			0.71						388,235			830			0.85
Total interest-bearing liabilities		4,753,379		$	6,801			0.57	%					4,545,085		$	7,953			0.69	%
Noninterest-bearing liabilities	2,207,508												2,237,462
Shareholders' equity		1,211,056												1,181,814
	Total liabilities and shareholders' equity	$	8,171,943											$	7,964,361
Net interest income and margin (tax equivalent)				$	77,054			3.99	%							$	74,213			3.94	%
		Three Months Ended
		June 30, 2019
			Average			Tax Equivalent			Yield /
			Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	5,436		$	39			2.88	%
Interest-bearing deposits in nonaffiliated banks		107,381			628			2.35
Taxable securities		2,063,497			13,925			2.70
Tax exempt securities		1,169,889			10,615			3.63
Loans		4,043,055			56,033			5.56
Total interest-earning assets		7,389,258		$	81,240			4.41	%
Noninterest-earning assets		487,931
	Total assets	$	7,877,189
Interest-bearing liabilities:
Deposits	$	4,196,123		$	7,286			0.70	%
Borrowings		378,389			675			0.72
Total interest-bearing liabilities		4,574,512		$	7,961			0.70	%
Noninterest-bearing liabilities	2,180,361
Shareholders' equity		1,122,316
	Total liabilities and shareholders' equity	$	7,877,189
Net interest income and margin (tax equivalent)				$	73,279			3.98	%
		Six Months Ended				Six Months Ended
		June 30, 2020				June 30, 2019
			Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
			Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	1,776		$	11			1.26	%				$	5,166		$	73			2.84	%
Interest-bearing deposits in nonaffiliated banks		290,469			831			0.58						103,839			1,213			2.35
Taxable securities		2,331,347			28,685			2.46						1,994,563			27,213			2.73
Tax exempt securities		1,573,591			25,933			3.30						1,198,016			21,893			3.65
Loans		4,957,744			129,572			5.26						4,008,275			109,569			5.51
Total interest-earning assets		9,154,927		$	185,032			4.06	%					7,309,859		$	159,961			4.41	%
Noninterest-earning assets		674,311												498,094
	Total assets	$	9,829,238											$	7,807,953
Interest-bearing liabilities:
Deposits	$	5,019,929		$	9,231			0.37	%				$	4,170,250		$	13,947			0.67	%
Borrowings		668,840			928			0.28						393,432			1,401			0.72
Total interest-bearing liabilities		5,688,769		$	10,159			0.36	%					4,563,682		$	15,348			0.68	%
Noninterest-bearing liabilities	2,631,974												2,148,398
Shareholders' equity		1,508,495												1,095,873
	Total liabilities and shareholders' equity	$	9,829,238											$	7,807,953
Net interest income and margin (tax equivalent)				$	174,873			3.84	%							$	144,613			3.99	%

 

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SOURCE First Financial Bankshares, Inc.

FAQ

What were First Financial Bankshares' Q2 2020 earnings?

First Financial Bankshares reported Q2 2020 earnings of $53.47 million.

How much did First Financial Bankshares earn per share in Q2 2020?

The earnings per share for Q2 2020 were $0.38.

What impact did the PPP have on First Financial Bankshares' revenue?

The bank funded over $700 million in loans through the PPP, boosting net interest income.

What is the current status of First Financial Bankshares' assets?

As of June 30, 2020, First Financial Bankshares had total assets of $10.34 billion.

What were the provisions for loan losses at First Financial Bankshares?

The provision for loan losses in Q2 2020 was $8.70 million.