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Section 1: 8-K (8-K)

8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): October 18, 2018

 

 

FIRST FINANCIAL BANKSHARES, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Texas   0-7674   75-0944023

(State or other Jurisdiction

of Incorporation)

 

(Commission

File No.)

 

(IRS Employer

Identification No.)

400 Pine Street, Abilene, Texas 79601

(Address of Principal Executive Offices and Zip Code)

Registrant’s Telephone Number (325) 627-7155

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 203.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))

 

Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13 e-4 (c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Attached as an exhibit to this Form 8-K is the earnings release for the quarter ended September 30, 2018 of First Financial Bankshares, Inc.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

99.1 Press Release dated October 18, 2018


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

FIRST FINANCIAL BANKSHARES, INC.

(Registrant)

DATE: October 18, 2018     By:    /S/ F. Scott Dueser
      F. SCOTT DUESER
      President and Chief Executive Officer
(Back To Top)

Section 2: EX-99.1 (EX-99.1)

EX-99.1

Exhibit 99.1

 

For immediate release  

For More Information:

 

J. Bruce Hildebrand, Executive Vice President

 

325.627.7155

FIRST FINANCIAL BANKSHARES ANNOUNCES

THIRD QUARTER EARNINGS RESULTS

ABILENE, Texas, October 18, 2018 – First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the third quarter of 2018 of $40.05 million, up $10.68 million when compared with earnings of $29.37 million in the same quarter last year. Basic earnings per share were $0.59 for the third quarter of 2018 compared with $0.44 in the same quarter a year ago. Contributing to the increase in net earnings and earnings per share in the current quarter when compared with the same quarter a year ago were the Kingwood acquisition (see below) and the enactment of the Tax Cuts and Jobs Act which was effective January 1, 2018, and reduced the corporate income tax rate from 35 percent to 21 percent. Without this tax adjustment, net earnings for the third quarter of 2018 would have been $34.88 million with an adjusted basic earnings per share of $0.52.

All amounts for the three and nine months ended September 30, 2018, include the results of the Company’s acquisition of Commercial Bancshares, Inc. and its wholly-owned subsidiary, Commercial State Bank, Kingwood, Texas, which was effective January 1, 2018. As of the acquisition date, Commercial State Bank had total assets of approximately $390.20 million, total loans of approximately $271.50 million and total deposits of approximately $345.90 million.

Net interest income for the third quarter of 2018 was $69.43 million compared with $59.69 million in the same quarter of 2017. The net interest margin, on a taxable equivalent basis, was 4.01 percent for the third quarter of 2018 compared to 3.92 percent for the second quarter of 2018 and 3.94 percent for the third quarter of 2017. Included in interest income for the third quarter of 2018 was $750 thousand, or four basis points in net interest margin, related to discount accretion from fair value accounting related to the Kingwood and Orange acquisitions.

The provision for loan losses was $1.45 million in the third quarter of 2018 compared with $1.11 million in the second quarter of 2018 and $1.42 million in the third quarter of 2017. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.69 percent at September 30, 2018, compared with 0.73 percent at June 30, 2018, and 0.63 percent at September 30, 2017. Classified loans totaled $117.52 million at September 30, 2018, compared to $113.73 million at June 30, 2018, and $121.29 million at September 30, 2017.

Noninterest income increased 11.52 percent in the third quarter of 2018 to $27.06 million compared with $24.26 million in the same quarter a year ago. Trust fees increased $1.25 million to $7.29 million in the third quarter of 2018 compared with $6.04 million in the same quarter last year, primarily due to continued growth in Trust assets managed to $5.75 billion from $4.92 billion a year ago. ATM, interchange and credit card fees increased 18.82 percent to $7.53 million compared with $6.34 million in the same quarter last year due to continued growth in debit cards and the Kingwood acquisition. Service charges on deposits increased 11.94 percent to $5.69 million compared with $5.08 million in the same quarter a year ago, primarily due to continued growth in net new accounts, product and pricing changes made to better align the Company’s account offerings and the Kingwood acquisition. Real estate mortgage fees increased to $4.83 million in the third quarter of 2018 from $3.89 million in the same quarter a year ago. Offsetting these increases was a decrease in gains on sales of securities to $58 thousand in the third quarter of 2018 compared to $1.08 million in the same quarter a year ago.


Noninterest expense for the third quarter of 2018 totaled $47.51 million compared to $43.96 million in the third quarter of 2017. The Company’s efficiency ratio in the third quarter of 2018 was 48.12 percent compared with 48.71 percent in the same quarter last year. The increase in noninterest expense in the third quarter of 2018 was primarily a result of an increase in salary and employee benefit costs to $26.38 million compared to $24.14 million in the same quarter a year ago, primarily driven by the acquisition of Commercial State Bank, annual merit based pay increases and an increase in profit sharing expenses.

For the nine months ended September 30, 2018, net income increased to $112.20 million from $84.23 million for the same period a year ago. Basic earnings per share rose to $1.66 from $1.27 in the same period of 2017. Net interest income increased 15.18 percent to $202.49 million for the nine months ended September 30, 2018, from $175.79 million in the same period a year ago. The provision for loan losses totaled $3.87 million compared with $5.09 million in the same period a year ago. Noninterest income was $76.97 million for the first nine months 2018 compared with $68.72 million in the same period a year ago. Noninterest expense rose to $142.45 million compared with $129.89 million during the same period a year ago.

As of September 30, 2018, consolidated assets for the Company totaled $7.57 billion compared to $7.69 billion at June 30, 2018, and $7.01 billion at September 30, 2017. Loans grew to $3.89 billion at September 30, 2018, compared with loans of $3.86 billion at June 30, 2018 and $3.49 billion at September 30, 2017. Deposits totaled $6.15 billion at September 30, 2018, compared to $6.21 billion at June 30, 2018, and $5.70 billion at September 30, 2017. Shareholders’ equity rose to $995.74 million as of September 30, 2018, compared with $985.63 million at June 30, 2018, and $906.56 million at September 30, 2017.

“We are pleased to report another quarter of strong earnings growth,” said F. Scott Dueser, Chairman, President and CEO. “We continue to work diligently to grow loans and deposits and reduce expenses while looking for acquisition opportunities to utilize our strong capital position and increase returns to our shareholders. In light of the continued increases in interest rates by the Federal Reserve, we are focused on increasing loan and deposit rates to better align with our competitive environment,” added Dueser.

About First Financial Bankshares

Headquartered in Abilene, Texas, First Financial is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 72 locations in Texas, following the close of this acquisition, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, 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 seven 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 Bankshares, 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  
     2018      2017  
     Sept. 30,      June 30,      Mar. 31,      Dec 31,      Sept. 30,  

ASSETS

              

Cash and due from banks

   $ 164,998      $ 178,217      $ 130,979      $ 209,583      $ 177,615  

Interest-bearing deposits in banks

     34,511        99,499        67,060        162,764        166,820  

Interest-bearing time deposits in banks

     1,458        1,458        1,458        1,458        1,458  

Fed funds sold

     —          8,450        —          —          —    

Investment securities

     3,144,367        3,197,567        3,276,193        3,087,473        2,885,483  

Loans

     3,885,536        3,855,769        3,747,081        3,500,699        3,491,346  

Allowance for loan losses

     (50,871      (49,951      (49,499      (48,156      (47,922
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net loans

     3,834,665        3,805,818        3,697,582        3,452,543        3,443,424  

Premises and equipment

     130,815        130,366        126,446        124,026        125,668  

Goodwill

     171,565        171,565        171,565        139,971        139,971  

Other intangible assets

     3,342        3,620        4,004        1,172        1,384  

Other assets

     85,510        88,910        92,162        75,725        67,341  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 7,571,231      $ 7,685,470      $ 7,567,449      $ 7,254,715      $ 7,009,164  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

              

Noninterest-bearing deposits

   $ 2,146,984      $ 2,105,953      $ 2,111,116      $ 2,041,650      $ 1,949,174  

Interest-bearing deposits

     3,998,298        4,104,654        4,079,647        3,921,311        3,748,286  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

     6,145,282        6,210,607        6,190,763        5,962,961        5,697,460  

Borrowings

     380,760        456,935        372,155        331,000        351,435  

Other liabilities

     49,450        32,300        34,717        37,986        53,713  

Shareholders’ equity

     995,739        985,628        969,814        922,768        906,556  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 7,571,231      $ 7,685,470      $ 7,567,449      $ 7,254,715      $ 7,009,164  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Quarter Ended  
     2018      2017  
     Sept 30,      June 30,      Mar. 31,      Dec 31,      Sept. 30,  

INCOME STATEMENTS

              

Interest income

   $ 74,049      $ 72,078      $ 69,082      $ 63,456      $ 62,554  

Interest expense

     4,623        4,467        3,633        2,562        2,866  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

     69,426        67,611        65,449        60,894        59,688  

Provision for loan losses

     1,450        1,105        1,310        1,440        1,415  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     67,976        66,506        64,139        59,454        58,273  

Noninterest income

     27,055        25,488        24,423        22,302        24,260  

Noninterest expense

     47,506        47,144        47,798        44,096        43,964  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income before income taxes

     47,525        44,850        40,764        37,660        38,569  

Income tax expense

     7,475        7,217        6,245        9,167        9,195  

Tax benefit from tax rate change

     —          —          —          (7,650      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 40,050      $ 37,633      $ 34,519      $ 36,143      $ 29,374  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

PER COMMON SHARE DATA

              

Net income—basic

   $ 0.59      $ 0.56      $ 0.51      $ 0.55      $ 0.44  

Net income—diluted

     0.59        0.55        0.51        0.54        0.44  

Cash dividends declared

     0.21        0.21        0.19        0.19        0.19  

Book Value

     14.71        14.57        14.34        13.93        13.69  

Market Value

   $ 59.10      $ 50.90      $ 46.30      $ 45.05      $ 45.20  

Shares outstanding—end of period

     67,693,586        67,669,658        67,612,760        66,260,444        66,223,957  

Average outstanding shares—basic

     67,635,058        67,597,275        67,527,010        66,191,995        66,140,518  

Average outstanding shares—diluted

     68,053,724        67,924,168        67,799,545        66,428,871        66,417,281  

PERFORMANCE RATIOS

              

Return on average assets

     2.10      1.98      1.84      2.02      1.65

Return on average equity

     16.00        15.53        14.74        15.79        12.95  

Return on average tangible equity

     19.42        18.94        17.82        18.70        15.38  

Net interest margin (tax equivalent)

     4.01        3.92        3.88        4.00        3.94  

Efficiency ratio

     48.12        49.42        51.76        49.37        48.71  
     Nine Months Ended
Sept. 30,
                      
     2018      2017                       

INCOME STATEMENTS

              

Interest income

   $ 215,209      $ 182,519           

Interest expense

     12,723        6,726           
  

 

 

    

 

 

          

Net interest income

     202,486        175,793           

Provision for loan losses

     3,865        5,090           
  

 

 

    

 

 

          

Net interest income after provision for loan losses

     198,621        170,703           

Noninterest income

     76,966        68,715           

Noninterest expense

     142,448        129,891           
  

 

 

    

 

 

          

Net income before income taxes

     133,139        109,527           

Income tax expense

     20,937        25,300           
  

 

 

    

 

 

          

Net income

   $ 112,202      $ 84,227           
  

 

 

    

 

 

          

PER COMMON SHARE DATA

              

Net income—basic

   $ 1.66      $ 1.27           

Net income—diluted

     1.65        1.27           

Cash dividends declared

     0.61        0.56           

Book Value

     14.71        13.69           

Market Value

   $ 59.10      $ 45.20           

Shares outstanding—end of period

     67,693,586        66,223,957           

Average outstanding shares—basic

     67,586,843        66,104,914           

Average outstanding shares—diluted

     67,948,420        66,392,210           

PERFORMANCE RATIOS

              

Return on average assets

     1.97      1.62         

Return on average equity

     15.43        12.88           

Return on average tangible equity

     18.74        15.40           

Net interest margin (tax equivalent)

     3.94        4.01           

Efficiency ratio

     49.73        49.22           


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

     Quarter Ended  
     2018      2017  
     Sept. 30,      June 30,      Mar. 31,      Dec 31,      Sept. 30,  

ALLOWANCE FOR LOAN LOSSES

              

Balance at beginning of period

   $ 49,951      $ 49,499      $ 48,156      $ 47,922      $ 47,410  

Loans charged off

     (945      (949      (471      (1,440      (1,180

Loan recoveries

     415        296        504        234        277  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net recoveries (charge-offs)

     (530      (653      33        (1,206      (903

Provision for loan losses

     1,450        1,105        1,310        1,440        1,415  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at end of period

   $ 50,871      $ 49,951      $ 49,499      $ 48,156      $ 47,922  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Allowance for loan losses / period-end loans

     1.31      1.30      1.32      1.38      1.37

Allowance for loan losses / nonperforming loans

     194.25        182.31        209.80        259.11        243.57  

Net charge-offs / average loans (annualized)

     0.05        0.07        —          0.14        0.10  

SUMMARY OF LOAN CLASSIFICATION

              

Special Mention

   $ 36,450      $ 34,557      $ 40,079      $ 37,079      $ 35,237  

Substandard

     81,073        79,170        83,976        80,131        86,057  

Doubtful

     —          —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total classified loans

   $ 117,523      $ 113,727      $ 124,055      $ 117,210      $ 121,294  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NONPERFORMING ASSETS

              

Nonaccrual loans

   $ 25,587      $ 26,685      $ 22,752      $ 17,670      $ 18,750  

Accruing troubled debt restructured loans

     513        514        514        627        668  

Accruing loans 90 days past due

     88        200        327        288        257  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nonperforming loans

     26,188        27,399        23,593        18,585        19,675  

Foreclosed assets

     671        705        1,276        1,532        2,401  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nonperforming assets

   $ 26,859      $ 28,104      $ 24,869      $ 20,117      $ 22,076  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

As a % of loans and foreclosed assets

     0.69      0.73      0.66      0.57      0.63

As a % of end of period total assets

     0.35        0.37        0.33        0.28        0.31  

OIL AND GAS PORTFOLIO INFORMATION

              

Oil and gas loans

   $ 112,039      $ 103,381      $ 86,218      $ 60,164      $ 69,433  

Oil and gas loans as a % of total loans

     2.88      2.68      2.30      1.72      1.99

Classified oil and gas loans

     4,861        5,001        10,485        20,346        21,817  

Nonaccrual oil and gas loans

     1,825        1,629        1,460        1,414        1,569  

Net charge-offs for oil and gas loans

     —          —          —          —          —    

Allowance for oil and gas loans as a % of oil and gas loans

     3.28      3.48      3.64      7.90      6.03

CAPITAL RATIOS

              

Common equity Tier 1 capital ratio

     19.19      18.68      18.43      18.66      18.35

Tier 1 capital ratio

     19.19        18.68        18.43        18.66        18.35  

Total capital ratio

     20.34        19.81        19.58        19.85        19.54  

Tier 1 leverage

     11.57        11.14        10.90        11.09        10.84  

Equity to assets

     13.15        12.82        12.82        12.72        12.93  
     Quarter Ended  
     2018      2017  
     Sept. 30,      June 30,      Mar. 31,      Dec 31,      Sept. 30,  

NONINTEREST INCOME

              

Trust fees

   $ 7,291      $ 7,070      $ 6,904      $ 5,891      $ 6,040  

Service charges on deposits

     5,690        5,375        4,884        4,900        5,083  

ATM, interchange and credit card fees

     7,533        7,041        6,996        6,584        6,340  

Real estate mortgage fees

     4,834        3,951        2,933        3,613        3,891  

Net gain on sale of available-for-sale securities

     58        67        1,221        3        1,075  

Net gain (loss) on sale of foreclosed assets

     84        19        99        (8      (11

Net gain (loss) on sale of assets

     (61      —          (91      (185      (15

Interest on loan recoveries

     199        289        119        232        405  

Other noninterest income

     1,427        1,676        1,358        1,272        1,452  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

   $ 27,055      $ 25,488      $ 24,423      $ 22,302      $ 24,260  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NONINTEREST EXPENSE

              

Salaries and employee benefits, excluding profit sharing

   $ 24,693      $ 24,545      $ 24,994      $ 22,760      $ 23,052  

Profit sharing expense

     1,684        2,317        1,209        1,661        1,091  

Net occupancy expense

     2,900        2,806        2,883        2,439        2,711  

Equipment expense

     3,482        3,440        3,516        3,369        3,294  

FDIC insurance premiums

     570        632        566        560        561  

ATM, interchange and credit card expenses

     2,344        2,205        2,143        1,935        2,001  

Legal, tax and professional fees

     2,417        2,308        2,807        2,580        2,396  

Audit fees

     382        439        411        338        356  

Printing, stationery and supplies

     387        612        486        567        449  

Amortization of intangible assets

     279        384        387        136        143  

Advertising and public relations

     1,709        1,576        1,575        1,689        1,527  

Operational and other losses

     981        305        566        553        1,081  

Software amortization and expense

     540        479        524        1,056        742  

Other noninterest expense

     5,138        5,096        5,731        4,453        4,560  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

   $ 47,506      $ 47,144      $ 47,798      $ 44,096      $ 43,964  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

TAX EQUIVALENT YIELD ADJUSTMENT

   $ 2,242      $ 2,289      $ 2,467      $ 6,125      $ 6,312  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Nine Months Ended
Sept. 30,
                      
     2018      2017                       

NONINTEREST INCOME

              

Trust fees

   $ 21,265      $ 17,804           

Service charges on deposits

     15,950        14,517           

ATM, interchange and credit card fees

     21,570        19,102           

Real estate mortgage fees

     11,718        11,496           

Net gain (loss) on sale of available-for-sale securities

     1,346        1,825           

Net gain (loss) on sale of foreclosed assets

     201        (42         

Net gain (loss) on sale of assets

     (152      (211         

Interest on loan recoveries

     607        896           

Other noninterest income

     4,461        3,328           
  

 

 

    

 

 

          

Total noninterest income

   $ 76,966      $ 68,715           
  

 

 

    

 

 

          

NONINTEREST EXPENSE

              

Salaries and employee benefits, excluding profit sharing

   $ 74,232      $ 67,793           

Profit sharing expense

     5,210        3,074           

Net occupancy expense

     8,589        8,081           

Equipment expense

     10,438        10,397           

FDIC insurance premiums

     1,768        1,657           

ATM, interchange and credit card expenses

     6,692        5,517           

Legal, tax and professional fees

     7,532        7,399           

Audit fees

     1,234        1,154           

Printing, stationery and supplies

     1,485        1,423           

Amortization of intangible assets

     1,049        477           

Advertising and public relations

     4,860        4,646           

Operational and other losses

     1,852        2,639           

Software amortization and expense

     1,542        2,237           

Other noninterest expense

     15,965        13,397           
  

 

 

    

 

 

          

Total noninterest expense

   $ 142,448      $ 129,891           
  

 

 

    

 

 

          

TAX EQUIVALENT YIELD ADJUSTMENT

   $ 6,997      $ 19,371           
  

 

 

    

 

 

          


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

     Three Months Ended
Sept. 30, 2018
     Three Months Ended
June 30, 2018
 
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                 

Fed funds sold

   $ 3,377      $ 19        2.29    $ 2,228      $ 13        2.32

Interest-bearing deposits in nonaffiliated banks

     88,118        450        2.03        59,373        258        1.74  

Taxable securities

     1,943,125        12,594        2.59        2,007,949        12,719        2.53  

Tax exempt securities

     1,213,212        11,459        3.78        1,281,757        12,001        3.75  

Loans

     3,845,836        51,769        5.34        3,797,341        49,376        5.22  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     7,093,668      $ 76,291        4.27      7,148,648      $ 74,367        4.17

Noninterest-earning assets

     490,155              486,837        
  

 

 

          

 

 

       

Total assets

   $ 7,583,823            $ 7,635,485        
  

 

 

          

 

 

       

Interest-bearing liabilities:

                 

Deposits

   $ 4,035,174      $ 4,329        0.43    $ 4,076,522      $ 4,005        0.39

Fed funds purchased and other borrowings

     399,026        294        0.29        434,239        462        0.43  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     4,434,200      $ 4,623        0.41      4,510,761      $ 4,467        0.40

Noninterest-bearing liabilities

     2,156,258              2,152,451        

Shareholders’ equity

     993,365              972,273        
  

 

 

          

 

 

       

Total liabilities and shareholders’ equity

   $ 7,583,823            $ 7,635,485        
  

 

 

          

 

 

       
     

 

 

          

 

 

    

Net interest income and margin (tax equivalent)

      $ 71,668        4.01       $ 69,900        3.92
     

 

 

    

 

 

       

 

 

    

 

 

 
     Three Months Ended
Mar. 31, 2018
     Three Months Ended
Dec. 31, 2017
 
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                 

Fed funds sold

   $ 6,215      $ 27        1.78    $ 1,192      $ 5        1.52

Interest-bearing deposits in nonaffiliated banks

     160,399        613        1.55        186,355        645        1.37  

Taxable securities

     1,826,391        11,354        2.49        1,562,744        8,977        2.30  

Tax exempt securities

     1,352,235        12,559        3.72        1,405,327        16,259        4.63  

Loans

     3,748,561        46,995        5.08        3,483,939        43,695        4.98  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     7,093,801      $ 71,548        4.09      6,639,557      $ 69,581        4.16

Noninterest-earning assets

     497,049              441,645        
  

 

 

          

 

 

       

Total assets

   $ 7,590,850            $ 7,081,202        
  

 

 

          

 

 

       

Interest-bearing liabilities:

                 

Deposits

   $ 4,139,324      $ 3,519        0.34    $ 3,795,808      $ 2,465        0.26

Fed funds purchased and other borrowings

     357,414        113        0.13        343,683        97        0.11  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     4,496,738      $ 3,632        0.33      4,139,491      $ 2,562        0.25

Noninterest-bearing liabilities

     2,144,065              2,033,580        

Shareholders’ equity

     950,047              908,131        
  

 

 

          

 

 

       

Total liabilities and shareholders’ equity

   $ 7,590,850            $ 7,081,202        
  

 

 

          

 

 

       
     

 

 

          

 

 

    

Net interest income and margin (tax equivalent)

      $ 67,916        3.88       $ 67,019        4.00
     

 

 

    

 

 

       

 

 

    

 

 

 
     Three Months Ended
Sept. 30, 2017
                      
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
                      

Interest-earning assets:

                 

Fed funds sold

   $ 2,467      $ 9        1.43         

Interest-bearing deposits in nonaffiliated banks

     198,322        629        1.26           

Taxable securities

     1,492,246        8,074        2.16           

Tax exempt securities

     1,477,559        16,884        4.57           

Loans

     3,468,524        43,270        4.95           
  

 

 

    

 

 

    

 

 

          

Total interest-earning assets

     6,639,118      $ 68,866        4.12         

Noninterest-earning assets

     431,070                 
  

 

 

                

Total assets

   $ 7,070,188                 
  

 

 

                

Interest-bearing liabilities:

                 

Deposits

   $ 3,728,442      $ 2,228        0.24         

Fed funds purchased and other borrowings

     524,357        638        0.48           
  

 

 

    

 

 

    

 

 

          

Total interest-bearing liabilities

     4,252,799      $ 2,866        0.27         

Noninterest-bearing liabilities

     1,917,681                 

Shareholders’ equity

     899,708                 
  

 

 

                

Total liabilities and shareholders’ equity

   $ 7,070,188                 
  

 

 

                
     

 

 

             

Net interest income and margin (tax equivalent)

      $ 66,000        3.94         
     

 

 

    

 

 

          
     Nine Months Ended
Sept. 30, 2018
     Nine Months Ended
Sept. 30, 2017
 
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                 

Fed funds sold

   $ 3,929      $ 60        2.03    $ 3,738      $ 20        0.70

Interest-bearing deposits in nonaffiliated banks

     102,365        1,321        1.73        126,207        1,016        1.08  

Taxable securities

     1,926,249        36,666        2.54        1,451,712        23,848        2.19  

Tax exempt securities

     1,281,892        36,019        3.75        1,511,786        51,859        4.57  

Loans

     3,797,602        148,140        5.22        3,419,105        125,147        4.89  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     7,112,037      $ 222,206        4.18      6,512,548      $ 201,890        4.14

Noninterest-earning assets

     489,625              435,367        
  

 

 

          

 

 

       

Total assets

   $ 7,601,662            $ 6,947,915        
  

 

 

          

 

 

       

Interest-bearing liabilities:

                 

Deposits

   $ 4,083,292      $ 11,854        0.39    $ 3,779,967      $ 5,748        0.20

Fed funds purchased and other short term borrowings

     397,045        869        0.29        448,773        978        0.29  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     4,480,337      $ 12,723        0.38      4,228,740      $ 6,726        0.21

Noninterest-bearing liabilities

     2,149,271              1,844,894        

Shareholders’ equity

     972,054              874,281        
  

 

 

          

 

 

       

Total liabilities and shareholders’ equity

   $ 7,601,662            $ 6,947,915        
  

 

 

          

 

 

       
     

 

 

          

 

 

    

Net interest income and margin (tax equivalent)

      $ 209,483        3.94       $ 195,164        4.01
     

 

 

    

 

 

       

 

 

    

 

 

 
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