FIRST FINANCIAL BANKSHARES ANNOUNCES FOURTH QUARTER 2023 EARNINGS RESULTS

ABILENE, Texas, Jan. 25, 2024 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings of $45.98 million for the fourth quarter of 2023 compared to earnings of $58.67 million for the same quarter a year ago. Basic and diluted earnings per share were $0.32 for the fourth quarter of 2023 compared with $0.41 for the same quarter a year ago.

"2023 was a very challenging year for the banking industry due to the Federal Reserve's highest and most rapid increase in interest rates in our country's history. Despite the decline in our year-over-year net income in 2023, I am proud of the many accomplishments we achieved during the year and we continued to outperform our peer group of banks," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. "We are pleased that we ended 2023 having maintained our total deposit levels when compared to 2022 year-end balances primarily resulting from the addition of over 12,500 net new accounts. Additionally, we grew loans organically $706.92 million, or 10.97 percent, during the year while maintaining our conservative credit standards. In addition, we took advantage of opportunities to restructure our balance sheet by selling $411.13 million in securities with lower yields and redeployed those dollars into our higher earning loan portfolio. The cash flows provided from the sales of securities combined with the monthly maturities in our bond and loan portfolios are providing us with the needed liquidity to grow loans which will also benefit our interest income as we go forward. Entering 2024, I believe we are well positioned for success in the economic environment. We appreciate the continued support of our customers, shareholders and associates," Mr. Dueser added.

As further described below, the results this quarter when compared to the same quarter a year ago included (i) a $6.53 million decrease in net interest income, (ii) a $964 thousand decrease in mortgage revenues, (iii) a $6.34 million loss on sale of securities, (iv) a $2.08 million increase in FDIC insurance premiums, which includes a $1.75 million special assessment, and (v) a $1.51 million increase in incentive and profit sharing expenses.

Net earnings for the year ended December 31, 2023, totaled $198.98 million compared to $234.48 million for the year ended December 31, 2022. Basic and diluted earnings per share were $1.39 for the year ended December 31, 2023, compared with basic and diluted earnings per share of $1.64 for the year ended December 31, 2022. Included in earnings for the year ended December 31, 2023, when compared to the year ended December 31, 2022, were (i) a decrease of $17.61 million in net interest income, (ii) a decrease in debit card revenues of $8.56 million, (iii) a decrease in mortgage revenues of $7.15 million, (iv) a $9.26 million decline in gains on sales of securities, and (v) an increase of $4.04 million in FDIC insurance premiums, which includes a $1.75 million special assessment. Offsetting these reductions to earnings were (i) a decline of $6.80 million in the provision for credit losses and (ii) a decline of $5.30 million in incentive and profit sharing expenses.

Net interest income for the fourth quarter of 2023 was $97.51 million compared to $94.15 million for the third quarter of 2023 and $104.04 million for the fourth quarter of 2022. The net interest margin, on a taxable equivalent basis, was 3.33 percent for the fourth quarter of 2023, compared to 3.22 percent for the third quarter of 2023, and 3.47 percent for the fourth quarter of 2022. Average interest-earning assets were $11.93 billion for the fourth quarter of 2023 compared to $12.32 billion for the same quarter a year ago.

The Company did not record a provision for credit losses for the fourth quarter of 2023 compared to a provision for credit losses of $4.08 million for the fourth quarter of 2022. At December 31, 2023, the allowance for credit losses totaled $88.73 million, or 1.24 percent of loans held-for-investment ("loans" hereafter), compared to $75.83 million at December 31, 2022, or 1.18 percent of loans. Additionally, the reserve for unfunded commitments totaled $7.90 million at December 31, 2023, compared to $12.32 million at December 31, 2022.

For the fourth quarter of 2023, net charge-offs totaled $980 thousand compared to net charge-offs of $905 thousand for the fourth quarter of 2022, or 6 basis points of loans in both periods. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.49 percent at December 31, 2023, compared with 0.38 percent at December 31, 2022.  Classified loans totaled $176.21 million at December 31, 2023, compared to $150.70 million at December 31, 2022.

Noninterest income for the fourth quarter of 2023 was $21.98 million compared to $28.52 million for the fourth quarter of 2022, primarily as a result of the following:

• Available-for-sale securities totaling $90.72 million with an average book yield of 1.89 percent were sold in the fourth quarter of 2023 resulting in a loss on sales of securities of $6.21 million compared to a gain on sales of securities of $131 thousand in the fourth quarter of 2022. The proceeds from the sales of these securities are being used to fund organic loan growth that is yielding approximately 8 percent, resulting in an anticipated earn back period of less than 18 months.
• Mortgage income declined to $1.94 million for the fourth quarter of 2023 compared to $2.90 million for the fourth quarter of 2022 due to lower overall origination volume.
• Debit card fees decreased by $875 thousand for the fourth quarter of 2023 compared to the same quarter a year ago. The decrease was mostly due to the recognition of $1.11 million of volume incentive income in the fourth quarter of 2022 compared to $375 thousand in the fourth quarter of 2023.
• Trust fees increased to $10.68 million for the fourth quarter of 2023 compared to $10.12 million for the fourth quarter of 2022, driven by the increase in fair value of trust assets managed to $9.78 billion at December 31, 2023, compared to $8.75 billion at December 31, 2022.
• Service charges on deposits increased to $6.52 million for the fourth quarter of 2023 compared with $6.40 million for the fourth quarter of 2022, driven by the continued growth in net new accounts.

Noninterest expense for the fourth quarter of 2023 totaled $63.47 million compared to $57.78 million for the fourth quarter of 2022, as a result of the following:

• Salary, commissions and employee benefit costs totaled $35.75 million for the fourth quarter of 2023, compared to $32.96 million in the fourth quarter of 2022 reflecting some bonuses and profit sharing expenses paid to several of our Bank regions that met their performance criteria, annual merit-based and market driven pay increases and increased medical expenses.
• FDIC insurance premiums increased to $3.11 million in the fourth quarter of 2023 compared with $1.02 million in the fourth quarter of 2022 due to the recognition of $1.75 million related to the special assessment in the fourth quarter of 2023.

The Company's efficiency ratio was 47.26 percent for the year ended December 31, 2023, compared to 42.80 percent for the year ended December 31, 2022.

As of December 31, 2023, consolidated assets for the Company totaled $13.11 billion compared to $12.97 billion at December 31, 2022. Loans totaled $7.15 billion at December 31, 2023, compared with loans of $6.44 billion at December 31, 2022. During the fourth quarter of 2023, loans grew $154.10 million, or 8.81 percent annualized, when compared to September 30, 2023 balances. Deposits totaled $11.14 billion at December 31, 2023, compared to $11.01 billion at December 31, 2022.

Shareholders' equity was $1.50 billion as of December 31, 2023, compared to $1.27 billion at December 31, 2022, primarily as a result of changes in Other Comprehensive Income ("OCI") due to interest rate changes over the past year. The unrealized loss on the available-for-sale investment securities portfolio, net of applicable tax, totaled $403.30 million at December 31, 2023, compared to an unrealized loss of $535.23 million at December 31, 2022.

About First Financial Bankshares, Inc.

Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that through its wholly-owned subsidiary, First Financial Bank, N.A., operates multiple banking regions with 79 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Franklin, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Lumberton, 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, Spring, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust and 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 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," "project," 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, 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
		2023												2022
ASSETS		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Cash and due from banks	$	281,354		$	208,277		$	255,018		$	224,875		$	293,286
Interest-bearing demand deposits in banks		255,237			180,008			23,839			221,336			37,392
Investment securities		4,732,762			4,652,537			5,066,262			5,298,557			5,474,359
Loans, held-for-investment, excluding PPP Loans		7,148,682			6,994,574			6,777,429			6,576,060			6,441,699
PPP loans		109			122			141			155			169
Total loans, held-for-investment		7,148,791			6,994,696			6,777,570			6,576,215			6,441,868
Allowance for credit losses		(88,734)			(89,714)			(86,541)			(80,818)			(75,834)
Net loans, held-for-investment		7,060,057			6,904,982			6,691,029			6,495,397			6,366,034
Loans, held-for-sale		14,253			12,229			19,220			11,996			11,965
Premises and equipment, net		151,788			152,936			152,876			153,718			152,973
Goodwill		313,481			313,481			313,481			313,481			313,481
Other intangible assets		1,141			1,369			1,597			1,825			2,053
Other assets		295,521			351,599			302,115			286,801			322,523
Total assets	$	13,105,594		$	12,777,418		$	12,825,437		$	13,007,986		$	12,974,066
LIABILITIES AND SHAREHOLDERS'  EQUITY
Noninterest-bearing deposits	$	3,435,586		$	3,477,553		$	3,578,483		$	3,890,991		$	4,061,788
Interest-bearing deposits		7,702,714			7,238,970			7,229,077			7,045,427			6,943,719
Total deposits		11,138,300			10,716,523			10,807,560			10,936,418			11,005,507
Repurchase Agreements		381,928			621,791			559,479			608,299			618,829
Borrowings		22,153			129,753			28,177			24,628			23,678
Trade date payable		-			2,500			-			-			-
Other liabilities		64,313			66,741			62,988			65,788			60,315
Shareholders' equity		1,498,900			1,240,110			1,367,233			1,372,853			1,265,737
Total liabilities and shareholders' equity	$	13,105,594		$	12,777,418		$	12,825,437		$	13,007,986		$	12,974,066
	Quarter Ended
		2023												2022
INCOME STATEMENTS		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Interest income	$	142,207		$	135,351		$	129,005		$	121,508		$	121,137
Interest expense		44,699			41,202			33,139			25,222			17,100
Net interest income		97,508			94,149			95,866			96,286			104,037
Provision for credit losses		-			2,276			5,573			2,781			4,075
Net interest income after provision for credit losses		97,508			91,873			90,293			93,505			99,962
Noninterest income		21,979			28,070			29,947			28,007			28,524
Noninterest expense		63,474			59,539			57,613			57,256			57,778
Net income before income taxes		56,013			60,404			62,627			64,256			70,708
Income tax expense		10,031			10,848			11,754			11,688			12,040
Net income	$	45,982		$	49,556		$	50,873		$	52,568		$	58,668
PER COMMON SHARE DATA
Net income - basic	$	0.32		$	0.35		$	0.36		$	0.37		$	0.41
Net income - diluted		0.32			0.35			0.36			0.37			0.41
Cash dividends declared		0.18			0.18			0.18			0.17			0.17
Book value		10.50			8.69			9.58			9.62			8.87
Tangible book value		8.30			6.48			7.37			7.41			6.66
Market value		30.30			25.12			28.49			31.90			34.40
Shares outstanding - end of period		142,716,939			142,677,069			142,741,196			142,703,531			142,657,871
Average outstanding shares - basic		142,680,263			142,707,260			142,700,805			142,665,646			142,619,632
Average outstanding shares - diluted		143,069,900			143,149,373			143,087,555			143,066,011			143,071,538
PERFORMANCE RATIOS
Return on average assets		1.42	%		1.53	%		1.58	%		1.65	%		1.76	%
Return on average equity		14.26			14.51			14.89			16.32			19.87
Return on average tangible equity		18.92			18.90			19.33			21.51			27.20
Net interest margin (tax equivalent)*		3.33			3.22			3.29			3.34			3.47
Efficiency ratio*		51.97			47.62			44.74			44.93			42.39
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

	Year Ended
	Dec. 31,
INCOME STATEMENTS		2023			2022
Interest income	$	528,070		$	432,854
Interest expense		144,261			31,440
Net interest income		383,809			401,414
Provision for credit losses		10,631			17,427
Net interest income after provisions for credit losses		373,178			383,987
Noninterest income		108,003			131,665
Noninterest expense		237,882			234,778
Net income before income taxes		243,299			280,874
Income tax expense		44,322			46,399
Net income	$	198,977		$	234,475
PER COMMON SHARE DATA
Net income - basic	$	1.39		$	1.64
Net income - diluted		1.39			1.64
Cash dividends declared		0.71			0.66
Book value		10.50			8.87
Tangible book value		8.30			6.66
Market value	$	30.30		$	34.40
Shares outstanding - end of period		142,716,939			142,657,871
Average outstanding shares - basic		142,688,585			142,596,252
Average outstanding shares - diluted		142,938,977			143,207,899
PERFORMANCE RATIOS
Return on average assets		1.55	%		1.76	%
Return on average equity		14.99			16.72
Return on average tangible equity		19.65			21.59
Net interest margin (tax equivalent)*		3.29			3.34
Efficiency ratio*		47.26			42.80
*Calculation has been adjusted to remove effect of TEFRA disallowance

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
	Quarter Ended
		2023												2022
ALLOWANCE FOR LOAN LOSSES		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Balance at beginning of period	$	89,714		$	86,541		$	80,818		$	75,834		$	74,108
Loans charged-off		(1,213)			(1,080)			(1,118)			(288)			(1,225)
Loan recoveries		233			432			319			565			320
Net recoveries (charge-offs)		(980)			(648)			(799)			277			(905)
Provision for loan losses		-			3,821			6,522			4,707			2,631
Balance at end of period	$	88,734		$	89,714		$	86,541		$	80,818		$	75,834
ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	7,903		$	9,448		$	10,397		$	12,323		$	10,879
Provision for unfunded commitments		-			(1,545)			(949)			(1,926)			1,444
Balance at end of period	$	7,903		$	7,903		$	9,448		$	10,397		$	12,323
Allowance for loan losses /
period-end loans held-for-investment		1.24	%		1.28	%		1.28	%		1.23	%		1.18	%
Allowance for loan losses /
nonperforming loans		256.36			229.44			296.13			334.06			311.75
Net charge-offs (recoveries) / average total loans
(annualized)		0.06			0.04			0.05			(0.02)			0.06
	Quarter Ended
		2023												2022
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Commercial:
C&I	$	1,164,702		$	1,108,118		$	1,021,722		$	954,531		$	917,148
PPP		109			122			141			155			169
Municipal		214,850			218,358			215,977			221,379			221,090
Total Commercial		1,379,661			1,326,598			1,237,840			1,176,065			1,138,407
Agricultural		84,890			81,876			82,032			77,017			76,947
Real Estate:
Construction & Development		963,158			929,570			915,221			921,190			959,426
Farm		344,954			341,052			335,644			307,706			306,322
Non-Owner Occupied CRE		827,969			828,900			811,347			737,117			732,089
Owner Occupied CRE		1,037,281			1,002,913			1,011,511			1,043,018			954,400
Residential		1,834,593			1,788,913			1,698,679			1,628,841			1,575,758
Total Real Estate		5,007,955			4,891,348			4,772,402			4,637,872			4,527,995
Consumer:
Auto		521,859			540,382			534,603			537,410			550,635
Non-Auto		154,426			154,492			150,693			147,851			147,884
Total Consumer		676,285			694,874			685,296			685,261			698,519
Total loans held-for-investment	$	7,148,791		$	6,994,696		$	6,777,570		$	6,576,215		$	6,441,868
SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	40,834		$	60,939		$	66,960		$	65,141		$	49,382
Substandard		135,379			118,166			108,179			91,915			101,316
Doubtful		-			-			-			-			-
Total classified loans	$	176,213		$	179,105		$	175,139		$	157,056		$	150,698
NONPERFORMING ASSETS
Nonaccrual loans	$	33,609		$	38,812		$	28,672		$	24,171		$	24,325
Accruing loans 90 days past due		1,004			289			552			22			-
Total nonperforming loans		34,613			39,101			29,224			24,193			24,325
Foreclosed assets		483			597			25			196			-
Total nonperforming assets	$	35,096		$	39,698		$	29,249		$	24,389		$	24,325
As a % of loans held-for-investment and foreclosed assets		0.49	%		0.57	%		0.43	%		0.37	%		0.38	%
As a % of end of period total assets		0.27			0.31			0.23			0.19			0.19
	Quarter Ended
		2023												2022
CAPITAL RATIOS		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Common equity Tier 1 capital ratio		18.50	%		18.35	%		18.48	%		18.68	%		18.22	%
Tier 1 capital ratio		18.50			18.35			18.48			18.68			18.22
Total capital ratio		19.62			19.49			19.62			19.79			19.29
Tier 1 leverage ratio		12.06			12.00			11.81			11.53			10.96
Tangible common equity ratio		9.26			7.42			8.41			8.33			7.51
Equity/Assets ratio		11.44			9.71			10.66			10.55			9.76
	Quarter Ended
		2023												2022
NONINTEREST INCOME		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
Trust fees	$	10,678		$	10,050		$	9,883		$	9,845		$	10,122
Service charges on deposits		6,523			6,509			6,310			6,036			6,397
Debit card fees		5,024			5,041			6,720			4,936			5,899
Credit card fees		631			694			711			609			632
Gain on sale and fees on mortgage loans		1,940			3,442			3,534			2,974			2,904
Net gain (loss) on sale of available-for-sale securities		(6,205)			(972)			46			12			131
Net gain (loss) on sale of foreclosed assets		23			(10)			(1)			34			-
Net gain (loss) on sale of assets		(101)			696			-			930			(2)
Interest on loan recoveries		536			698			475			346			244
Other noninterest income		2,930			1,922			2,269			2,285			2,197
Total noninterest income	$	21,979		$	28,070		$	29,947		$	28,007		$	28,524
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	34,560		$	32,755		$	31,796		$	31,431		$	32,391
Profit sharing expense		1,193			180			(30)			30			565
Net occupancy expense		3,348			3,565			3,423			3,430			3,350
Equipment expense		2,020			2,200			2,198			2,127			2,053
FDIC insurance premiums		3,105			1,573			1,417			1,654			1,021
Debit card expense		3,229			3,284			3,221			3,199			3,054
Legal, tax and professional fees		3,125			3,007			2,847			2,687			2,814
Audit fees		587			551			563			540			451
Printing, stationery and supplies		492			512			740			710			473
Amortization of intangible assets		228			228			228			228			299
Advertising, meals and public relations		1,146			1,622			1,789			1,475			1,646
Operational and other losses		1,096			959			856			931			982
Software amortization and expense		3,017			2,441			2,519			2,311			2,420
Other noninterest expense		6,328			6,662			6,046			6,503			6,259
Total noninterest expense	$	63,474		$	59,539		$	57,613		$	57,256		$	57,778
TAX EQUIVALENT YIELD ADJUSTMENT *	$	2,649		$	2,823		$	2,950		$	3,131		$	3,751

 

 

 

	Year Ended
	Dec. 31,
NONINTEREST INCOME		2023			2022
Trust fees	$	40,456		$	39,995
Service charges on deposits		25,378			24,540
Debit card fees		21,721			30,280
Credit card fees		2,645			2,585
Gain on sale and fees on mortgage loans		11,890			19,035
Net gain (loss) on sale of available-for-sale securities		(7,119)			2,144
Net gain on sale of foreclosed assets		46			1,451
Net gain on sale of assets		1,525			520
Interest on loan recoveries		2,055			2,840
Other noninterest income		9,406			8,275
Total noninterest income	$	108,003		$	131,665
NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	130,542		$	129,900
Profit sharing expense		1,373			4,233
Net occupancy expense		13,766			13,307
Equipment expense		8,545			9,052
FDIC insurance premiums		7,749			3,711
Debit card expense		12,933			12,231
Legal, tax and professional fees		11,666			10,888
Audit fees		2,241			1,803
Printing, stationery and supplies		2,454			2,114
Amortization of intangible assets		912			1,245
Advertising, meals and public relations		6,032			6,385
Operational and other losses		3,842			3,229
Software amortization and expense		10,288			9,963
Other noninterest expense		25,539			26,717
Total noninterest expense	$	237,882		$	234,778
TAX EQUIVALENT YIELD ADJUSTMENT *	$	11,552		$	15,423
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

 

 

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
	Three Months Ended												Three Months Ended
	Dec. 31, 2023												Sept. 30, 2023
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
		Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	1,768		$	25			5.72	%				$	2,383		$	35			5.79	%
Interest-bearing demand deposits in nonaffiliated banks		145,839			1,961			5.33						55,231			757			5.44
Taxable securities		3,317,114			19,686			2.37						3,429,290			19,425			2.27
Tax-exempt securities		1,410,148			10,188			2.89						1,578,660			11,085			2.81
Loans		7,052,463			112,996			6.36						6,894,064			106,872			6.15
Total interest-earning assets		11,927,332		$	144,856			4.82	%					11,959,628		$	138,174			4.58	%
Noninterest-earning assets		886,811												850,855
Total assets	$	12,814,143											$	12,810,483
Interest-bearing liabilities:
Deposits	$	7,371,260		$	39,225			2.11	%				$	7,259,252		$	36,165			1.98	%
Repurchase Agreements		558,592			4,627			3.29						567,064			4,518			3.16
Borrowings		78,066			847			4.30						54,124			519			3.80
Total interest-bearing liabilities		8,007,918		$	44,699			2.21	%					7,880,440		$	41,202			2.07	%
Noninterest-bearing deposits		3,461,544												3,509,809
Other noninterest-bearing liabilities		65,524												65,094
Shareholders' equity		1,279,157												1,355,140
Total liabilities and shareholders' equity	$	12,814,143											$	12,810,483
Net interest income and margin (tax equivalent)				$	100,157			3.33	%							$	96,972			3.22	%
	Three Months Ended												Three Months Ended
	June 30, 2023												Mar. 31, 2023
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
		Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	2,242		$	30			5.45	%				$	2,507		$	32			5.12	%
Interest-bearing demand deposits in nonaffiliated banks		119,168			1,553			5.23						143,542			1,618			4.57
Taxable securities		3,589,381			20,032			2.23						3,672,257			20,782			2.26
Tax-exempt securities		1,653,418			11,799			2.85						1,750,533			12,743			2.91
Loans		6,683,276			98,541			5.91						6,500,332			89,464			5.58
Total interest-earning assets		12,047,485		$	131,955			4.39	%					12,069,171		$	124,639			4.19	%
Noninterest-earning assets		842,284												863,342
Total assets	$	12,889,769											$	12,932,513
Interest-bearing liabilities:
Deposits	$	7,037,677		$	27,629			1.57	%				$	7,080,518		$	21,812			1.25	%
Repurchase Agreements		570,071			3,949			2.78						577,314			3,045			2.14
Borrowings		145,000			1,561			4.32						47,823			365			3.10
Total interest-bearing liabilities		7,752,748		$	33,139			1.71	%					7,705,655		$	25,222			1.33	%
Noninterest-bearing deposits		3,704,143												3,860,472
Other noninterest-bearing liabilities		62,227												60,028
Shareholders' equity		1,370,651												1,306,358
Total liabilities and shareholders' equity	$	12,889,769											$	12,932,513
Net interest income and margin (tax equivalent)*				$	98,816			3.29	%							$	99,417			3.34	%
	Three Months Ended
	Dec. 31, 2022
		Average			Tax Equivalent			Yield /
		Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	3,165		$	36			4.57	%
Interest-bearing demand deposits in nonaffiliated banks		160,200			1,579			3.91
Taxable securities		3,761,206			21,152			2.25
Tax-exempt securities		2,001,185			15,740			3.15
Loans		6,391,703			86,381			5.36
Total interest-earning assets		12,317,459		$	124,888			4.02	%
Noninterest-earning assets		891,972
Total assets	$	13,209,431
Interest-bearing liabilities:
Deposits	$	6,871,315		$	13,123			0.76	%
Repurchase Agreements		639,371			1,216			0.75
Borrowings		287,879			2,761			3.81
Total interest-bearing liabilities		7,798,565		$	17,100			0.87	%
Noninterest-bearing deposits		4,179,494
Other noninterest-bearing liabilities		60,085
Shareholders' equity		1,171,287
Total liabilities and shareholders' equity	$	13,209,431
Net interest income and margin (tax equivalent)*				$	107,788			3.47	%
	Year Ended												Year Ended
	Dec. 31, 2023												Dec. 31, 2022
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent			Yield /
		Balance			Interest			Rate						Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	2,223		$	122			5.50	%				$	2,196		$	63			2.85	%
Interest-bearing deposits in nonaffiliated banks		115,785			5,890			5.09						217,525			3,633			1.67
Taxable securities		3,500,839			79,925			2.28						4,032,228			78,924			1.96
Tax exempt securities		1,597,204			45,815			2.87						2,286,578			68,143			2.98
Loans		6,784,352			407,870			6.01						5,923,594			297,515			5.02
Total interest-earning assets		12,000,403		$	539,622			4.50	%					12,462,121		$	448,278			3.60	%
Noninterest-earning assets		860,859												824,550
Total assets	$	12,861,262											$	13,286,671
Interest-bearing liabilities:
Deposits	$	7,188,171		$	124,830			1.74	%				$	6,955,783		$	26,246			0.38	%
Repurchase Agreements		568,205			16,139			2.84						674,226			2,062			0.31
Borrowings		81,262			3,292			4.05						127,865			3,133			2.45
Total interest-bearing liabilities		7,837,638		$	144,261			1.84	%					7,757,874		$	31,441			0.41	%
Noninterest-bearing deposits		3,632,559												4,063,740
Other noninterest-bearing liabilities		63,238												62,953
Shareholders' equity		1,327,827												1,402,104
Total liabilities and shareholders' equity	$	12,861,262											$	13,286,671
Net interest income and margin (tax equivalent)*				$	395,361			3.29	%							$	416,837			3.34	%
*Calculations have been adjusted to remove effect of TEFRA disallowance

 

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SOURCE First Financial Bankshares, Inc.