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Section 1: 8-K (FORM 8-K)

Form 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): January 24, 2019

 

 

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 December 31, 2018 of First Financial Bankshares, Inc.

 

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS

99.1 Press Release dated January 24, 2019


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: January 24, 2019     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 FOURTH QUARTER EARNINGS RESULTS AND 32nd YEAR OF CONSECUTIVE EARNINGS GROWTH

ABILENE, Texas, January 24, 2019 – First Financial Bankshares, Inc. (NASDAQ: FFIN) today reported earnings for the fourth quarter of 2018 of $38.44 million, up $2.29 million when compared with earnings of $36.14 million in the same quarter last year. Basic earnings per share were $0.57 for the fourth quarter of 2018 compared with $0.55 in the same quarter a year ago. Included in noninterest expense in the fourth quarter of 2018 was $1.55 million, before income tax, resulting from the Company’s partial settlement of its frozen defined benefit pension plan (see below for more details). Additionally, the Company recorded a $322 thousand prior year income tax benefit in the fourth quarter of 2018 resulting from refinements in the re-measurement of its deferred tax balance related to the Tax Cuts and Jobs Act which lowered the Company’s corporate income tax rate to 21% from 35% at the end of 2017.

All amounts for the three months and year ended December 31, 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 fourth quarter of 2018 was $70.27 million compared with $60.89 million in the same quarter of 2017. The net interest margin, on a taxable equivalent basis, was 4.02 percent for the fourth quarter of 2018 compared to 4.01 percent in the third quarter of 2018 and 4.00 percent in the fourth quarter of 2017. Included in interest income for the fourth quarter of 2018 was $491 thousand, or three 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 $1.80 million in the fourth quarter of 2018 compared with $1.45 million in the third quarter of 2018 and $1.44 million in the fourth quarter of 2017. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.75 percent at December 31, 2018, compared with 0.69 percent at September 30, 2018, and 0.57 percent at December 31, 2017. Classified loans totaled $126.30 million at December 31, 2018, compared to $117.52 million at September 30, 2018, and $117.21 million at December 31, 2017.

Noninterest income increased 11.19 percent in the fourth quarter of 2018 to $24.80 million compared with $22.30 million in the same quarter a year ago. Trust fees increased $1.02 million to $6.92 million in the fourth quarter of 2018 compared with $5.89 million in the same quarter last year, primarily due to continued growth in the fair value of Trust assets managed to $5.60 billion from $5.13 billion a year ago. ATM, interchange and credit card fees increased 5.74 percent to $6.96 million compared with $6.58 million in the same quarter last year due to continued growth in debit cards and the Kingwood acquisition. Service charges on deposits increased 16.59 percent to $5.71 million compared with $4.90 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.


Noninterest expense for the fourth quarter of 2018 totaled $48.24 million compared to $44.10 million in the fourth quarter of 2017. The Company’s efficiency ratio in the fourth quarter of 2018 was 49.69 percent compared with 49.37 percent in the same quarter last year. During the fourth quarter of 2018, the Company settled the portion of its pension obligation for plan participants no longer employed by the Company that are in payout. As a result of the partial settlement of the plan, the Company recognized $1.55 million, before income tax, in settlement loss, a component of noninterest expense. Also included in noninterest expense in the fourth quarter of 2018 was a $1.33 million increase in salary and employee benefit costs to $25.75 million compared to $24.42 the same quarter a year ago, primarily driven by the Kingwood acquisition, annual merit based pay increases and an increase in profit sharing expenses.

For the year ended December 31, 2018, net income increased $30.27 million to $150.64 million from $120.37 million in 2017, marking 2018 as the 32nd consecutive year of earnings increases for the Company. Basic earnings per share in 2018 rose to $2.23 from $1.82 in the previous year. Net interest income increased $36.07 million for the year to $272.76 million from $236.69 million a year ago. The provision for loan losses for 2018 totaled $5.67 million compared with $6.53 million in 2017. Noninterest income was $101.76 million in 2018 compared with $91.02 million in 2017. Noninterest expense rose to $190.68 million in 2018 compared with $173.99 million a year ago.

As of December 31, 2018, consolidated assets for the Company totaled $7.73 billion compared with $7.25 billion at December 31, 2017. Loans totaled $3.98 billion at year end compared with loans of $3.50 billion a year ago. Deposits totaled $6.18 billion at December 31, 2018, compared to $5.96 billion a year ago. Shareholders’ equity rose to $1.05 billion at year end compared with $922.77 million at December 31, 2017.

“We are pleased to report the 32nd consecutive year of increased earnings for the Company, which does not just happen. It comes from the hard work and dedication of our board, officers and employees,” said F. Scott Dueser, Chairman, President and CEO. “We continue to work diligently to grow loans and deposits, reduce expenses to improve our bottom line while continuing to look for acquisition opportunities to better utilize our strong capital position and increase our return to our shareholders. In light of the continued increases in interest rates by the Federal Reserve, we continue to focus 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 Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 73 locations in Texas, 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, Spring, 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 eight 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  
     Dec. 31,     Sept. 30,     June 30,     Mar. 31,     Dec. 31,  

ASSETS

          

Cash and due from banks

   $ 207,835     $ 164,998     $ 178,217     $ 130,979     $ 209,583  

Interest-bearing deposits in banks

     40,812       34,511       99,499       67,060       162,764  

Interest-bearing time deposits in banks

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

Fed funds sold

     —         —         8,450       —         —    

Investment securities

     3,158,777       3,144,367       3,197,567       3,276,193       3,087,473  

Loans

     3,975,308       3,885,536       3,855,769       3,747,081       3,500,699  

Allowance for loan losses

     (51,202     (50,871     (49,951     (49,499     (48,156
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loans

     3,924,106       3,834,665       3,805,818       3,697,582       3,452,543  

Premises and equipment

     133,421       130,815       130,366       126,446       124,026  

Goodwill

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

Other intangible assets

     3,118       3,342       3,620       4,004       1,172  

Other assets

     90,762       85,510       88,910       92,162       75,725  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 7,731,854     $ 7,571,231     $ 7,685,470     $ 7,567,449     $ 7,254,715  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

          

Noninterest-bearing deposits

   $ 2,116,107     $ 2,146,984     $ 2,105,953     $ 2,111,116     $ 2,041,650  

Interest-bearing deposits

     4,064,282       3,998,298       4,104,654       4,079,647       3,921,311  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     6,180,389       6,145,282       6,210,607       6,190,763       5,962,961  

Borrowings

     468,706       380,760       456,935       372,155       331,000  

Other liabilities

     29,464       49,450       32,300       34,717       37,986  

Shareholders’ equity

     1,053,295       995,739       985,628       969,814       922,768  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 7,731,854     $ 7,571,231     $ 7,685,470     $ 7,567,449     $ 7,254,715  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

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

INCOME STATEMENTS

          

Interest income

   $ 76,481     $ 74,049     $ 72,078     $ 69,082     $ 63,456  

Interest expense

     6,207       4,623       4,467       3,633       2,562  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     70,274       69,426       67,611       65,449       60,894  

Provision for loan losses

     1,800       1,450       1,105       1,310       1,440  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

     68,474       67,976       66,506       64,139       59,454  

Noninterest income

     24,797       27,055       25,488       24,423       22,302  

Noninterest expense

     48,235       47,506       47,144       47,798       44,096  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income before income taxes

     45,036       47,525       44,850       40,764       37,660  

Income tax expense

     6,599       7,475       7,217       6,245       9,167  

Tax benefit from tax rate change

     —         —         —         —         (7,650
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 38,437     $ 40,050     $ 37,633     $ 34,519     $ 36,143  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PER COMMON SHARE DATA

          

Net income - basic

   $ 0.57     $ 0.59     $ 0.56     $ 0.51     $ 0.55  

Net income - diluted

     0.56       0.59       0.55       0.51       0.54  

Cash dividends declared

     0.21       0.21       0.21       0.19       0.19  

Book Value

     15.55       14.71       14.57       14.34       13.93  

Market Value

   $ 57.69     $ 59.10     $ 50.90     $ 46.30     $ 45.05  

Shares outstanding - end of period

     67,753,133       67,693,586       67,669,658       67,612,760       66,260,444  

Average outstanding shares - basic

     67,676,204       67,635,058       67,597,275       67,527,010       66,191,995  

Average outstanding shares - diluted

     68,095,612       68,053,724       67,924,168       67,799,545       66,428,871  

PERFORMANCE RATIOS

          

Return on average assets

     2.00     2.10     1.98     1.84     2.02

Return on average equity

     15.18       16.00       15.53       14.74       15.79  

Return on average tangible equity

     18.38       19.42       18.94       17.82       18.70  

Net interest margin (tax equivalent)

     4.02       4.01       3.92       3.88       4.00  

Efficiency ratio

     49.69       48.12       49.42       51.76       49.37  
     Year Ended        
     Dec. 31,  
     2018     2017  

INCOME STATEMENTS

    

Interest income

   $ 291,690     $ 245,975  

Interest expense

     18,930       9,288  
  

 

 

   

 

 

 

Net interest income

     272,760       236,687  

Provision for loan losses

     5,665       6,530  
  

 

 

   

 

 

 

Net interest income after provision for loan losses

     267,095       230,157  

Noninterest income

     101,764       91,017  

Noninterest expense

     190,684       173,986  
  

 

 

   

 

 

 

Net income before income taxes

     178,175       147,188  

Income tax expense

     27,537       26,817  
  

 

 

   

 

 

 

Net income

   $ 150,638     $ 120,371  
  

 

 

   

 

 

 

PER COMMON SHARE DATA

    

Net income - basic

   $ 2.23     $ 1.82  

Net income - diluted

     2.22       1.81  

Cash dividends declared

     0.82       0.75  

Book Value

     15.55       13.93  

Market Value

   $ 57.69     $ 45.05  

Shares outstanding - end of period

     67,753,133       66,260,444  

Average outstanding shares - basic

     67,609,367       66,126,863  

Average outstanding shares - diluted

     67,983,014       66,324,330  

 

PERFORMANCE RATIOS

    

Return on average assets

     1.98     1.72

Return on average equity

     15.37       13.63  

Return on average tangible equity

     18.65       16.26  

Net interest margin (tax equivalent)

     3.96       4.01  

Efficiency ratio

     49.72       49.26  


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

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

ALLOWANCE FOR LOAN LOSSES

              

Balance at beginning of period

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

Loans charged off

     (2,081      (945      (949      (471      (1,440

Loan recoveries

     612        415        296        504        234  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net recoveries (charge-offs)

     (1,469      (530      (653      33        (1,206

Provision for loan losses

     1,800        1,450        1,105        1,310        1,440  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at end of period

   $ 51,202      $ 50,871      $ 49,951      $ 49,499      $ 48,156  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Allowance for loan losses / period-end loans

     1.29      1.31      1.30      1.32      1.38

Allowance for loan losses / nonperforming loans

     176.22        194.25        182.31        209.80        259.11  

Net charge-offs / average loans (annualized)

     0.15        0.05        0.07        —          0.14  

SUMMARY OF LOAN CLASSIFICATION

              

Special Mention

   $ 50,379      $ 36,450      $ 34,557      $ 40,079      $ 37,079  

Substandard

     75,919        81,073        79,170        83,976        80,131  

Doubtful

     —          —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total classified loans

   $ 126,298      $ 117,523      $ 113,727      $ 124,055      $ 117,210  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NONPERFORMING ASSETS

 

           

Nonaccrual loans

   $ 27,534      $ 25,587      $ 26,685      $ 22,752      $ 17,670  

Accruing troubled debt restructured loans

     513        513        514        514        627  

Accruing loans 90 days past due

     1,008        88        200        327        288  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nonperforming loans

     29,055        26,188        27,399        23,593        18,585  

Foreclosed assets

     577        671        705        1,276        1,532  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nonperforming assets

   $ 29,632      $ 26,859      $ 28,104      $ 24,869      $ 20,117  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

As a % of loans and foreclosed assets

     0.75      0.69      0.73      0.66      0.57

As a % of end of period total assets

     0.38        0.35        0.37        0.33        0.28  

OIL AND GAS PORTFOLIO INFORMATION

              

Oil and gas loans

   $ 113,536      $ 112,039      $ 103,381      $ 86,218      $ 60,164  

Oil and gas loans as a % of total loans

     2.86      2.88      2.68      2.30      1.72

Classified oil and gas loans

     3,894        4,861        5,001        10,485        20,346  

Nonaccrual oil and gas loans

     1,048        1,825        1,629        1,460        1,414  

Net charge-offs for oil and gas loans

     —          —          —          —          —    

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

     3.23      3.28      3.48      3.64      7.90

CAPITAL RATIOS

              

Common equity Tier 1 capital ratio

     19.47      19.19      18.68      18.43      18.66

Tier 1 capital ratio

     19.47        19.19        18.68        18.43        18.66  

Total capital ratio

     20.61        20.34        19.81        19.58        19.85  

Tier 1 leverage

     11.85        11.57        11.14        10.90        11.09  

Equity to assets

     13.62        13.15        12.82        12.82        12.72  
     Quarter Ended  
     2018      2017  
     Dec. 31,      Sept. 30,      June 30,      Mar. 31,      Dec. 31,  

NONINTEREST INCOME

              

Trust fees

   $ 6,915      $ 7,291      $ 7,070      $ 6,904      $ 5,891  

Service charges on deposits

     5,713        5,690        5,375        4,884        4,900  

ATM, interchange and credit card fees

     6,962        7,533        7,041        6,996        6,584  

Real estate mortgage fees

     3,439        4,834        3,951        2,933        3,613  

Net gain on sale of available-for-sale securities

     8        58        67        1,221        3  

Net gain (loss) on sale of foreclosed assets

     (85      84        19        99        (8

Net gain (loss) on sale of assets

     5        (61      —          (91      (185

Interest on loan recoveries

     332        199        289        119        232  

Other noninterest income

     1,508        1,427        1,676        1,358        1,272  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

   $ 24,797      $ 27,055      $ 25,488      $ 24,423      $ 22,302  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NONINTEREST EXPENSE

              

Salaries and employee benefits, excluding profit sharing

   $ 23,908      $ 24,693      $ 24,545      $ 24,994      $ 22,760  

Loss from partial settlement of pension plan

     1,546        —          —          —          —    

Profit sharing expense

     1,839        1,684        2,317        1,209        1,661  

Net occupancy expense

     2,583        2,900        2,806        2,883        2,439  

Equipment expense

     3,403        3,482        3,440        3,516        3,369  

FDIC insurance premiums

     565        570        632        566        560  

ATM, interchange and credit card expenses

     2,589        2,344        2,205        2,143        1,935  

Legal, tax and professional fees

     2,609        2,417        2,308        2,807        2,580  

Audit fees

     291        382        439        411        338  

Printing, stationery and supplies

     513        387        612        486        567  

Amortization of intangible assets

     223        279        384        387        136  

Advertising and public relations

     1,805        1,709        1,576        1,575        1,689  

Operational and other losses

     337        981        305        566        553  

Software amortization and expense

     755        540        479        524        1,056  

Other noninterest expense

     5,269        5,138        5,096        5,731        4,453  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

   $ 48,235      $ 47,506      $ 47,144      $ 47,798      $ 44,096  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

TAX EQUIVALENT YIELD ADJUSTMENT

   $ 1,996      $ 2,242      $ 2,289      $ 2,467      $ 6,125  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Year Ended         
     Dec. 31,  
     2018      2017  

NONINTEREST INCOME

     

Trust fees

   $ 28,181      $ 23,694  

Service charges on deposits

     21,663        19,416  

ATM, interchange and credit card fees

     28,532        25,686  

Real estate mortgage fees

     15,157        15,109  

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

     1,354        1,828  

Net gain (loss) on sale of foreclosed assets

     116        (50

Net gain (loss) on sale of assets

     (147      (396

Interest on loan recoveries

     938        1,128  

Other noninterest income

     5,970        4,602  
  

 

 

    

 

 

 

Total noninterest income

   $ 101,764      $ 91,017  
  

 

 

    

 

 

 

NONINTEREST EXPENSE

     

Salaries and employee benefits, excluding profit sharing

   $ 98,140      $ 90,552  

Loss from partial settlement of pension plan

     1,546        —    

Profit sharing expense

     7,049        4,735  

Net occupancy expense

     11,173        10,521  

Equipment expense

     13,841        13,765  

FDIC insurance premiums

     2,333        2,217  

ATM, interchange and credit card expenses

     9,282        7,452  

Legal, tax and professional fees

     10,141        9,980  

Audit fees

     1,526        1,492  

Printing, stationery and supplies

     1,997        1,989  

Amortization of intangible assets

     1,272        613  

Advertising and public relations

     6,664        6,334  

Operational and other losses

     2,188        3,192  

Software amortization and expense

     2,297        3,295  

Other noninterest expense

     21,235        17,849  
  

 

 

    

 

 

 

Total noninterest expense

   $ 190,684      $ 173,986  
  

 

 

    

 

 

 

TAX EQUIVALENT YIELD ADJUSTMENT

   $ 8,993      $ 25,495  
  

 

 

    

 

 

 


FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

 

     Three Months Ended
Dec. 31, 2018
     Three Months Ended
Sept. 30, 2018
 
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                 

Fed funds sold

   $ 1,620      $ 10        2.54    $ 3,377      $ 19        2.29

Interest-bearing deposits in nonaffiliated banks

     41,511        240        2.30        88,118        450        2.03  

Taxable securities

     1,957,638        13,384        2.73        1,943,125        12,594        2.59  

Tax exempt securities

     1,206,728        11,482        3.81        1,213,212        11,459        3.78  

Loans

     3,918,360        53,361        5.40        3,845,836        51,769        5.34  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     7,125,857      $ 78,477        4.37      7,093,668      $ 76,291        4.27

Noninterest-earning assets

     493,244              490,155        
  

 

 

          

 

 

       

Total assets

   $ 7,619,101            $ 7,583,823        
  

 

 

          

 

 

       

Interest-bearing liabilities:

                 

Deposits

   $ 3,961,582      $ 5,092        0.51    $ 4,035,174      $ 4,329        0.43

Fed funds purchased and other borrowings

     484,054        1,115        0.91        399,026        294        0.29  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     4,445,636      $ 6,207        0.55      4,434,200      $ 4,623        0.41

Noninterest-bearing liabilities

     2,169,069              2,156,258        

Shareholders’ equity

     1,004,396              993,365        
  

 

 

          

 

 

       

Total liabilities and shareholders’ equity

   $ 7,619,101            $ 7,583,823        
  

 

 

          

 

 

       
     

 

 

          

 

 

    

Net interest income and margin (tax equivalent)

      $ 72,270        4.02       $ 71,668        4.01
     

 

 

    

 

 

       

 

 

    

 

 

 
     Three Months Ended
June 30, 2018
     Three Months Ended
Mar. 31, 2018
 
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                 

Fed funds sold

   $ 2,228      $ 13        2.32    $ 6,215      $ 27        1.78

Interest-bearing deposits in nonaffiliated banks

     59,373        258        1.74        160,399        613        1.55  

Taxable securities

     2,007,949        12,719        2.53        1,826,391        11,354        2.49  

Tax exempt securities

     1,281,757        12,001        3.75        1,352,235        12,559        3.72  

Loans

     3,797,341        49,376        5.22        3,748,561        46,995        5.08  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     7,148,648      $ 74,367        4.17      7,093,801      $ 71,548        4.09

Noninterest-earning assets

     486,837              497,049        
  

 

 

          

 

 

       

Total assets

   $ 7,635,485            $ 7,590,850        
  

 

 

          

 

 

       

Interest-bearing liabilities:

                 

Deposits

   $ 4,076,522      $ 4,005        0.39    $ 4,139,324      $ 3,519        0.34

Fed funds purchased and other borrowings

     434,239        462        0.43        357,414        113        0.13  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     4,510,761      $ 4,467        0.40      4,496,738      $ 3,632        0.33

Noninterest-bearing liabilities

     2,152,451              2,144,065        

Shareholders’ equity

     972,273              950,047        
  

 

 

          

 

 

       

Total liabilities and shareholders’ equity

   $ 7,635,485            $ 7,590,850        
  

 

 

          

 

 

       
     

 

 

          

 

 

    

Net interest income and margin (tax equivalent)

      $ 69,900        3.92       $ 67,916        3.88
     

 

 

    

 

 

       

 

 

    

 

 

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

Interest-earning assets:

                 

Fed funds sold

   $ 1,192      $ 5        1.52         

Interest-bearing deposits in nonaffiliated banks

     186,355        645        1.37           

Taxable securities

     1,562,744        8,977        2.30           

Tax exempt securities

     1,405,327        16,259        4.63           

Loans

     3,483,939        43,695        4.98           
  

 

 

    

 

 

    

 

 

          

Total interest-earning assets

     6,639,557      $ 69,581        4.16         

Noninterest-earning assets

     441,645                 
  

 

 

                

Total assets

   $ 7,081,202                 
  

 

 

                

Interest-bearing liabilities:

                 

Deposits

   $ 3,795,808      $ 2,465        0.26         

Fed funds purchased and other borrowings

     343,683        97        0.11           
  

 

 

    

 

 

    

 

 

          

Total interest-bearing liabilities

     4,139,491      $ 2,562        0.25         

Noninterest-bearing liabilities

     2,033,580                 

Shareholders’ equity

     908,131                 
  

 

 

                

Total liabilities and shareholders’ equity

   $ 7,081,202                 
  

 

 

                
     

 

 

             

Net interest income and margin (tax equivalent)

      $ 67,019        4.00         
     

 

 

    

 

 

          
     Year Ended
Dec. 31, 2018
     Year Ended
Dec. 31, 2017
 
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
     Average
Balance
     Tax Equivalent
Interest
     Yield /
Rate
 

Interest-earning assets:

                 

Fed funds sold

   $ 3,347      $ 70        2.09    $ 3,096      $ 24        0.78

Interest-bearing deposits in nonaffiliated banks

     87,027        1,561        1.79        141,368        1,660        1.17  

Taxable securities

     1,934,160        50,052        2.59        1,479,698        32,825        2.22  

Tax exempt securities

     1,262,947        47,501        3.76        1,484,952        68,118        4.59  

Loans

     3,828,040        201,498        5.26        3,435,447        168,843        4.91  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     7,115,521      $ 300,682        4.23      6,544,561      $ 271,470        4.15

Noninterest-earning assets

     491,211              436,950        
  

 

 

          

 

 

       

Total assets

   $ 7,606,732            $ 6,981,511        
  

 

 

          

 

 

       

Interest-bearing liabilities:

                 

Deposits

   $ 4,052,614      $ 16,945        0.42    $ 3,783,960      $ 8,213        0.22

Fed funds purchased and other short term borrowings

     418,977        1,984        0.47        422,285        1,075        0.25  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     4,471,591      $ 18,929        0.42      4,206,245      $ 9,288        0.22

Noninterest-bearing liabilities

     2,154,935              1,892,453        

Shareholders’ equity

     980,206              882,813        
  

 

 

          

 

 

       

Total liabilities and shareholders’ equity

   $ 7,606,732            $ 6,981,511        
  

 

 

          

 

 

       
     

 

 

          

 

 

    

Net interest income and margin (tax equivalent)

      $ 281,753        3.96       $ 262,182        4.01
     

 

 

    

 

 

       

 

 

    

 

 

 
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