First Financial Bankshares, Inc. FFIN

NAS: FFIN | ISIN: US32020R1095   21:00
32,81 USD (+0,80%)
(+0,80%)   21:00

First Financial Bankshares Announces First Quarter 2022 Earnings

ABILENE, Texas, April 21, 2022 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the first quarter of 2022 of $55.97 million compared to earnings of $56.92 million for the same quarter a year ago. Basic and diluted earnings per share were $0.39 for the first quarter of 2022 compared with $0.40 for the same quarter a year ago.  As further described below, the results this quarter compared to the prior year included i) an increase in the provision for credit losses of $6.78 million; ii) a $4.88 million decrease in PPP loan origination fees; and (iii) a $3.56 million decline in mortgage revenues. Offsetting these items was an increase in net interest income, excluding lower PPP loan origination fees, of $11.50 million from continued balance sheet growth.

"Leveraging the new relationships developed and the momentum created over the last two years, we delivered outstanding growth this quarter reflected by overall loan growth, excluding PPP and held-for-sale loans, of $214.25 million, or 16.07 percent annualized, and deposit growth of $433.34 million, or 16.63 percent annualized.  We continue our focus on growth, delivering excellence in customer service, improving our digital delivery, investing in our employees, and maximizing shareholder returns. We appreciate the continued support of our customers, shareholders and associates," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc.

Net interest income for the first quarter of 2022 was $95.44 million compared to $88.82 million for the first quarter of 2021. The net interest margin, on a taxable equivalent basis, was 3.22 percent for the first quarter of 2022 compared to 3.55 percent in the first quarter of 2021. The growth in net interest income was driven by higher average interest-earning assets which increased to $12.50 billion for the first quarter of 2022 compared to $10.56 billion a year ago, partially offset by lower PPP loan origination fees which totaled $1.37 million in the first quarter of 2022 compared to $6.25 million in the first quarter of 2021. 

PPP loan balances totaled $15.74 million at March 31, 2022 compared to $52.79 million and $531.81 million at December 31, 2021 and March 31, 2021, respectively, and accounted for $33.46 million in average balances for the first quarter of 2022 compared to $499.35 million for the first quarter of 2021. 

The Company recorded a provision for credit losses of $4.78 million for the first quarter of 2022 compared to a provision for credit losses of $2.06 million for the fourth quarter of 2021 and a reversal of provision for credit losses of $2.00 million for the first quarter of 2021. The increase in the Company's provision for credit losses during the first quarter of 2022 was primarily driven by strong organic loan growth. At March 31, 2022, the allowance for credit losses totaled $66.91 million, or 1.20 percent of loans held-for-investment ("loans" hereafter), compared to $62.97 million at March 31, 2021, or 1.18 percent of loans. Additionally, the reserve for unfunded commitments totaled $7.47 million at March 31, 2022 compared to $6.92 million at March 31, 2021.

For the first quarter of 2022, net charge-offs totaled $299 thousand compared to net charge-offs of $131 thousand for the first quarter of 2021. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.52 percent at March 31, 2022, compared with 0.75 percent at March 31, 2021.  Classified loans totaled $152.16 million at March 31, 2022, compared to $190.42 million at March 31, 2021.

Noninterest income for the first quarter of 2022 was $34.88 million compared to $34.87 million for the first quarter of 2021, as a result of the following:

  • Trust fees increased $1.52 million to $9.82 million for the first quarter of 2022 compared to $8.30 million for the first quarter of 2021 driven by the increase in the fair value of trust assets to $8.63 billion at March 31, 2022 compared to $7.54 billion at March 31, 2021.
  • Service charges on deposits and ATM, interchange, and credit card fees increased $913 thousand and $851 thousand, respectively, for the first quarter of 2022 compared to the first quarter of 2021.
  • Mortgage income was $6.33 million for the first quarter of 2022 compared to $9.89 million for the first quarter of 2021 due to lower overall origination volumes and margins.
  • Gains on sales of foreclosed and other assets and securities were $1.11 million during the first quarter of 2022 compared to $1.01 million for the first quarter of 2021.

Noninterest expense for the first quarter of 2022 totaled $59.23 million compared to $57.72 million for the first quarter of 2021, as a result of the following:

  • Salary, commissions, and employee benefit costs totaled $34.14 million for the first quarter of 2022, compared to $34.93 million in the first quarter of 2021 reflecting annual merit-based pay increases effective March 1, 2022 offset by lower mortgage compensation expenses of $1.40 million and a decrease of $697 thousand in profit sharing expenses.
  • Noninterest expenses, excluding salary related costs, increased $2.30 million for the first quarter of 2022 compared to the same period in 2021 due to $600 thousand of foreclosed asset expenses together with increases in FDIC insurance, deposit account charge-offs, interchange processing costs, and loan processing costs.

The Company's efficiency ratio improved to 44.16 percent for the first quarter of 2022 compared to 45.36 percent for the first quarter of 2021.

As of March 31, 2022, consolidated total assets were $13.31 billion compared to $12.10 billion at March 31, 2021.  Loans totaled $5.57 billion at March 31, 2022, compared with loans of $5.32 billion at March 31, 2021.  During the first quarter of 2022, loans, excluding PPP loans, grew $214.25 million, or 16.07 percent annualized. Deposits totaled $11.00 billion at March 31, 2022, compared to $9.41 billion at March 31, 2021, representing an increase of 16.85 percent.  Shareholders' equity was $1.49 billion as of March 31, 2022, compared to $1.76 billion and $1.67 billion at December 31, 2021, and March 31, 2021, respectively, as a result of changes in Other Comprehensive Income ("OCI") due to rate increases during the most recent quarter. The unrealized loss on the security portfolio, net of applicable tax, totaled $209.58 million at March 31, 2022, compared to an unrealized gain of $99.25 million and $117.01 million at December 31, 2021 and March 31, 2021, respectively.

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




 Mar. 31, 



 Dec. 31, 



 Sept. 30, 



 June 30, 



 Mar. 31, 








Cash and due from banks


$

203,187


$

205,053


$

201,901


$

190,061


$

190,350








Interest-bearing deposits in banks


394,566



323,535



359,241



654,531



893,221








Investment securities



6,502,495



6,573,179



6,119,984



5,578,048



5,109,631








Loans, held-for-investment, excluding PPP Loans


5,550,430



5,336,179



5,147,160



4,984,210



4,790,752








PPP loans




15,739



52,793



139,334



320,392



531,810








Total loans, held-for-investment



5,566,169



5,388,972



5,286,494



5,304,602



5,322,562









Allowance for loan losses


(66,913)



(63,465)



(63,370)



(62,138)



(62,974)








Net loans, held-for-investment 



5,499,256



5,325,507



5,223,124



5,242,464



5,259,588








Loans, held-for-sale



27,670



37,810



47,721



61,802



65,405








Premises and equipment, net



150,168



149,764



147,516



147,655



142,415








Goodwill




313,481



313,481



313,481



313,481



313,481








Other intangible assets



2,978



3,298



3,689



4,087



4,499








Other assets




220,399



170,834



126,601



136,954



124,297









Total assets


$

13,314,200


$

13,102,461


$

12,543,258


$

12,329,083


$

12,102,887
































LIABILITIES AND SHAREHOLDERS'  EQUITY






















Noninterest-bearing deposits


$

3,978,724


$

3,780,230


$

3,574,405


$

3,427,038


$

3,350,145








Interest-bearing deposits



7,021,101



6,786,258



6,318,712



6,354,656



6,063,302









Total deposits



10,999,825



10,566,488



9,893,117



9,781,694



9,413,447








Borrowings




758,595



671,152



648,679



549,969



548,604








Trade date payable



-



-



174,236



189,838



381,871








Other liabilities




67,031



105,597



93,491



87,213



93,537








Shareholders' equity



1,488,749



1,759,224



1,733,735



1,720,369



1,665,428









Total liabilities and shareholders' equity

$

13,314,200


$

13,102,461


$

12,543,258


$

12,329,083


$

12,102,887



































Quarter Ended











2022



2021








INCOME STATEMENTS



 Mar. 31, 



 Dec. 31,  



 Sept. 30,  



 June 30, 



 Mar. 31, 








Interest income



$

97,009


$

95,995


$

97,198


$

92,602


$

90,610








Interest expense



1,570



1,187



1,416



1,653



1,786








Net interest income



95,439



94,808



95,782



90,949



88,824








Provision for credit losses



4,782



2,064



-



(1,206)



(1,997)








Net interest income after provisions for credit losses


90,657



92,744



95,782



92,155



90,821








Noninterest income



34,881



34,903



37,726



34,673



34,874








Noninterest expense



59,225



61,672



62,939



59,374



57,723









Net income before income taxes


66,313



65,975



70,569



67,454



67,972








Income tax expense



10,341



10,638



11,641



11,075



11,054









Net income


$

55,972


$

55,337


$

58,928


$

56,379


$

56,918
































PER COMMON SHARE DATA 























Net income - basic


$

0.39


$

0.39


$

0.41


$

0.40


$

0.40








Net income - diluted



0.39



0.39



0.41



0.39



0.40








Cash dividends declared



0.15



0.15



0.15



0.15



0.13








Book value




10.43



12.34



12.17



12.08



11.70








Tangible book value



8.21



10.12



9.94



9.85



9.47








Market value




44.12



50.84



45.95



49.13



46.73








Shares outstanding - end of period


142,704,495



142,532,116



142,467,687



142,359,774



142,285,611








Average outstanding shares - basic


142,558,743



142,437,804



142,334,449



142,245,555



142,146,275








Average outstanding shares - diluted


143,302,063



143,251,521



143,218,920



143,164,611



143,002,658
































PERFORMANCE RATIOS























Return on average assets



1.71

%


1.74

%


1.90

%


1.89

%


2.05

%






Return on average equity



13.53



12.63



13.43



13.38



13.83








Return on average tangible equity


16.68



15.45



16.43



16.48



17.09








Net interest margin (tax equivalent)


3.22



3.29



3.41



3.36



3.55








Efficiency ratio




44.16



46.18



45.88



45.94



45.36
























































FIRST FINANCIAL BANKSHARES, INC.







SELECTED FINANCIAL DATA (UNAUDITED)







(In thousands)


































Quarter Ended











2022



2021








ALLOWANCE FOR LOAN LOSSES


 Mar. 31, 



 Dec. 31, 



 Sept. 30, 



 June 30, 



 Mar. 31, 








Balance at beginning of period


$

63,465


$

63,370


$

62,138


$

62,974


$

66,534








Loans charged off



(659)



(3,067)



(1,475)



(392)



(574)








Loan recoveries




360



783



2,707



595



443








Net recoveries (charge-offs)



(299)



(2,284)



1,232



203



(131)








Provision for loan losses



3,747



2,379



-



(1,039)



(3,429)








Balance at end of period


$

66,913


$

63,465


$

63,370


$

62,138


$

62,974
































ALLOWANCE FOR UNFUNDED COMMITMENTS






















Balance at beginning of period


$

6,436


$

6,751


$

6,751


$

6,918


$

5,486








Provision for unfunded commitments


1,035



(315)



-



(167)



1,432








Balance at end of period


$

7,471


$

6,436


$

6,751


$

6,751


$

6,918
































Allowance for loan losses /























     period-end loans held-for-investment


1.20

%


1.18

%


1.20

%


1.17

%


1.18

%







Allowance for loan losses /























     nonperforming loans



232.71



200.33



250.92



208.45



160.00








Net charge-offs (recoveries) / average total loans






















     (annualized)




0.02



0.17



(0.09)



(0.02)



0.01



































Quarter Ended











2022



2021








COMPOSITION OF LOANS HELD-FOR-INVESTMENT


 Mar. 31, 



 Dec. 31, 



 Sept. 30, 



 June 30, 



 Mar. 31, 








Commercial:
























    C&I



$

822,310


$

784,282


$

680,263


$

662,711


$

646,316








    PPP




15,739



52,793



139,334



320,392



531,810








    Municipal




191,799



177,905



165,847



179,356



176,949








          Total Commercial



1,029,848



1,014,980



985,444



1,162,459



1,355,075








Agriculture




82,883



98,089



98,947



95,212



90,366








Real Estate:
























    Construction & Development



806,211



749,793



656,530



550,928



587,928








    Farm




225,942



217,220



203,064



185,288



162,046








    Non-Owner Occupied CRE



636,160



623,434



674,958



673,608



650,144








    Owner Occupied CRE



881,181



821,653



824,231



820,055



759,906








    Residential




1,352,162



1,334,419



1,328,798



1,328,474



1,254,727








          Total Real Estate



3,901,656



3,746,519



3,687,581



3,558,353



3,414,751








Consumer:
























    Auto




419,818



405,416



394,072



383,764



370,027








    Non-Auto




131,964



123,968



120,450



104,814



92,343








          Total Consumer



551,782



529,384



514,522



488,578



462,370

































Total loans held-for-investment

$

5,566,169


$

5,388,972


$

5,286,494


$

5,304,602


$

5,322,562
































SUMMARY OF LOAN CLASSIFICATION






















Special Mention



$

47,445


$

55,670


$

53,620


$

54,497


$

61,866








Substandard




104,715



105,515



112,151



120,497



128,550








Doubtful




-



-



-



-



-









Total classified loans

$

152,160


$

161,185


$

165,771


$

174,994


$

190,416
































NONPERFORMING ASSETS























Nonaccrual loans


$

28,723


$

31,652


$

25,210


$

29,786


$

39,333








Accruing troubled debt restructured loans


20



21



22



23



23








Accruing loans 90 days past due


11



8



23



-



2









Total nonperforming loans


28,754



31,681



25,255



29,809



39,358








Foreclosed assets



-



2,477



28



305



300









Total nonperforming assets

$

28,754


$

34,158


$

25,283


$

30,114


$

39,658
































As a % of loans held-for-investment and foreclosed assets


0.52

%


0.63

%


0.48

%


0.57

%


0.75

%







As a % of end of period total assets


0.22



0.26



0.20



0.24



0.33



























































Quarter Ended











2022



2021








CAPITAL RATIOS



 Mar. 31, 



 Dec. 31,  



 Sept. 30,  



 June 30,  



 Mar. 31, 








Common equity Tier 1 capital ratio


19.00

%


19.35

%


19.71

%


20.04

%


20.32

%







Tier 1 capital ratio



19.00



19.35



19.71



20.04



20.32








Total capital ratio



20.01



20.34



20.76



21.12



21.47








Tier 1 leverage ratio



10.78



11.13



11.19



11.10



11.55








Tangible common equity ratio



10.52



11.55



11.90



11.75



12.35








Equity/Assets ratio



11.18



13.43



13.82



13.95



13.76



























































Quarter Ended











2022



2021








NONINTEREST INCOME



 Mar. 31, 



 Dec. 31,  



 Sept. 30,  



 June 30,  



 Mar. 31, 








Trust fees



$

9,817


$

9,670


$

9,484


$

8,692


$

8,299








Service charges on deposits



5,706



5,762



5,673



4,928



4,793








ATM, interchange and credit card fees


9,528



9,955



9,793



9,853



8,677








Gain on sale and fees on mortgage loans


6,333



6,272



8,788



8,291



9,894








Net gain on sale of available-for-sale securities


31



1



1



5



808








Net gain on sale of foreclosed assets


1,084



107



27



1



55








Net gain (loss) on sale of assets



(10)



(3)



(6)



74



145








Interest on loan recoveries



283



1,207



1,746



704



382








Other noninterest income



2,109



1,932



2,220



2,125



1,821









Total noninterest income

$

34,881


$

34,903


$

37,726


$

34,673


$

34,874
































NONINTEREST EXPENSE























Salaries, commissions and employee benefits, excluding profit sharing

$

32,540


$

31,876


$

34,460


$

32,936


$

32,636








Profit sharing expense



1,598



3,099



2,630



2,110



2,295








Net occupancy expense



3,225



3,333



3,288



3,241



3,147








Equipment expense



2,257



2,382



2,450



2,177



2,164








FDIC insurance premiums



869



848



815



766



701








ATM, interchange and credit card expenses


2,968



3,227



2,935



3,039



2,772








Legal, tax and professional fees



2,957



2,835



2,893



3,352



2,726








Audit fees




451



423



466



430



440








Printing, stationery and supplies



540



664



432



489



325








Amortization of intangible assets


320



391



398



412



412








Advertising and public relations



1,493



1,842



1,746



1,392



1,388








Operational and other losses



596



1,385



1,087



534



287








Software amortization and expense


2,457



2,817



2,855



2,829



2,619








Other noninterest expense



6,954



6,550



6,484



5,667



5,811









Total noninterest expense

$

59,225


$

61,672


$

62,939


$

59,374


$

57,723
































TAX EQUIVALENT YIELD ADJUSTMENT

$

3,782


$

3,841


$

3,670


$

3,633


$

3,547
























































FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)




















































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 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




Three Months Ended




Sept. 30, 2021




June 30, 2021





Average



Tax Equivalent



Yield /






Average



Tax Equivalent



Yield /






Balance



Interest



Rate






Balance



Interest



Rate


Interest-earning assets:























  Federal funds sold


$

1,554


$

2



0.51

%




$

3,049


$

4



0.54

%

  Interest-bearing deposits in nonaffiliated banks


612,551



236



0.15






796,835



211



0.11


  Taxable securities



3,081,215



12,122



1.57






2,656,211



11,449



1.72


  Tax exempt securities



2,542,606



17,701



2.78






2,461,924



17,410



2.83


  Loans




5,337,807



70,807



5.26






5,383,781



67,161



5.00


Total interest-earning assets



11,575,733


$

100,868



3.46

%





11,301,800


$

96,235



3.42

%

Noninterest-earning assets



705,099












692,282









Total assets


$

12,280,832











$

11,994,082
































Interest-bearing liabilities:























  Deposits



$

6,346,267


$

1,340



0.08

%




$

6,229,991


$

1,560



0.10

%

  Borrowings




599,934



76



0.05






527,669



93



0.07


Total interest-bearing liabilities



6,946,201


$

1,416



0.08

%





6,757,660


$

1,653



0.10

%

Noninterest-bearing deposits



3,490,685












3,439,683








Other noninterest-bearing liabilities                                                                              

103,446












106,994








Shareholders' equity



1,740,500












1,689,745









Total liabilities and shareholders' equity

$

12,280,832











$

11,994,082
































Net interest income and margin (tax equivalent)




$

99,452



3.41

%







$

94,582



3.36

%




























Three Months Ended
















Mar. 31, 2021

















Average



Tax Equivalent



Yield /


















Balance



Interest



Rate














Interest-earning assets:























  Federal funds sold


$

1,942


$

3



0.58

%













  Interest-bearing deposits in nonaffiliated banks


637,129



159



0.10














  Taxable securities



2,251,419



10,264



1.82














  Tax exempt securities



2,368,615



16,979



2.87














  Loans




5,296,149



66,753



5.11














Total interest-earning assets



10,555,254


$

94,158



3.62

%













Noninterest-earning assets



700,550





















Total assets


$

11,255,804












































Interest-bearing liabilities:























  Deposits



$

5,916,237


$

1,696



0.12

%













  Borrowings




456,620



91



0.08














Total interest-bearing liabilities



6,372,857


$

1,787



0.11

%













Noninterest-bearing deposits



3,114,656




















Other noninterest-bearing liabilities                                                                              

99,581




















Shareholders' equity



1,668,710





















Total liabilities and shareholders' equity

$

11,255,804












































Net interest income and margin (tax equivalent)




$

92,371



3.55

%





































 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/first-financial-bankshares-announces-first-quarter-2022-earnings-301530547.html

SOURCE First Financial Bankshares, Inc.

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