ABILENE, Texas, April 22, 2021 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ:FFIN) today reported earnings for the first quarter of 2021 of $56.92 million, up $19.69 million or 52.87 percent, when compared with earnings of $37.23 million in the same quarter a year ago. Diluted earnings per share were $0.40 for the first quarter of 2021 compared with $0.26 in the same quarter a year ago.

"We are extremely pleased that last year we did not look at the pandemic as a hurdle to performance, but we looked at it as an opportunity to be here and serve our customers. This created a great deal of momentum which maximized earnings last year and has rolled right into the first quarter this year. During the quarter, the Company had an organic asset growth of $1.20 billion driven by loan growth of $103.38 million, net of PPP and held-for-sale loans, and deposit growth of $737.63 million while overall asset quality continued to improve. We remain very focused on serving our customers and capitalizing on our growth over the last year," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc.

Net interest income for the first quarter of 2021 was $88.82 million, up $7.92 million from $80.90 million for the first quarter of 2020. The net interest margin, on a taxable equivalent basis, was 3.55 percent for the first quarter of 2021 compared to 3.75 percent in the fourth quarter of 2020 and 3.91 percent in the first quarter of 2020. Net interest income was positively impacted by a $2.05 billion increase in average-earning assets to $10.56 billion for the first quarter of 2021 when compared to the same period a year ago. The net interest margin was negatively impacted by the overall level of excess liquidity which totaled $1.08 billion at March 31, 2021 pending investment.

For the first quarter of 2021, interest income included Payroll Protection Program ("PPP") loan fees of $6.25 million compared to $5.67 million for the fourth quarter of 2020. The remainder of the PPP loan deferred fees totaled approximately $16 million at March 31, 2021, including approximately $11 million for 2021 originations, and continue to be amortized over the shorter of the repayment period or the contractual life of 24 to 60 months. Additional information related to the Company's PPP loan balances are included in the following table:

	PPP Loans Originated		PPP Loans Outstanding at March 31, 2021*
	Number Of Loans	Dollars Of Loans	Number Of Loans	Dollars Of Loans

PPP Round 1	6,530	$ 703,450,000	2,759	$ 315,879,000

PPP Round 2	2,016	216,683,000	1,990	215,931,000
PPP Total	8,546	$ 920,133,000	4,749	$ 531,810,000

*PPP loan balances accounted for $499.35 million in average balances for the period.

At March 31, 2021, the Company recorded a negative provision for credit losses during the first quarter of 2021 of $2.00 million. The Company's provision for credit losses in the first quarter of 2021 reflected the continued improvement in the economic outlook for our markets across Texas and overall improvements in asset quality.

During the first quarter of 2021, net charge-offs totaled $131 thousand compared to $1.91 million in the first quarter of 2020. At March 31, 2021, the allowance for credit losses totaled $62.97 million, or 1.18 percent of loans held-for-investment ("loans" hereafter), or 1.31 percent of loans excluding PPP loans, compared to $60.44 million at March 31, 2020, or 1.30 percent of loans. Additionally, the reserve for unfunded commitments totaled $6.92 million at March 31, 2021. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.75 percent at March 31, 2021, compared with 0.87 percent at March 31, 2020. Classified loans totaled $190.42 million at March 31, 2021, compared to $190.35 million at March 31, 2020.

Noninterest income in the first quarter of 2021 rose to $34.87 million from $28.73 million for the first quarter of 2020, as a result of the following:

Trust fees increased to $8.30 million in the first quarter of 2021 from $7.44 million in the first quarter of 2020. The fair value of trust assets managed increased to $7.54 billion, up 22.55 percent at March 31, 2021 from $6.15 billion at March 31, 2020.
Service charges on deposits were $4.79 million in the first quarter of 2021 compared with $5.92 million in the first quarter of 2020.
ATM, interchange and credit card fees increased to $8.68 million in the first quarter of 2021 from $7.40 million in the first quarter of 2020, driven by continued growth in the number of debit cards issued and overall customer utilization.
Mortgage income increased to $9.89 million compared with $3.85 million in the first quarter of 2020 due to a significant increase in the volume of loans originated.
Gains on sales of securities and other assets total $1.01 million compared to $2.18 million in the first quarter of 2020.

Noninterest expense for the first quarter of 2021 totaled $57.72 million compared to $55.32 million in the first quarter of 2020, as a result of the following:

Salary, commissions and employee benefit costs totaled $34.93 million for the first quarter of 2021, compared to $29.64 million in the first quarter of 2020. The increase over the prior year was primarily driven by annual merit-based pay increases, higher mortgage related commissions and increases to incentive compensation based on operating results.
Noninterest expense in the first quarter of 2020 included merger related costs totaling $3.81 million.

The Company's efficiency ratio was 45.36 percent for the first quarter of 2021 compared to 49.63 percent for the first quarter of 2020.

As of March 31, 2021, consolidated assets for the Company totaled $12.10 billion compared to $9.70 billion at March 31, 2020. Loans totaled $5.32 billion at March 31, 2021, compared with loans of $4.64 billion at March 31, 2020. During the first quarter of 2021, loans, excluding PPP loans, grew $103.38 million or 8.94 percent annualized, from December 31, 2020 balances. Deposits totaled $9.41 billion at March 31, 2021, compared to $7.21 billion at March 31, 2020, driven by organic growth. Shareholders' equity rose to $1.67 billion as of March 31, 2021, compared to $1.53 billion at March 31, 2020.

About First Financial Bankshares, Inc.

Headquartered in Abilene, Texas, First Financial Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 78 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Kingwood, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with ten locations and First Technology Services, Inc., a technology operating company.

The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at 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; economic impact of oil and gas prices and the pandemic, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents and Filings" on the Company's Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.

FIRST FINANCIAL BANKSHARES, INC.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except share and per share data)

		As of
			2021			2020
ASSETS			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Cash and due from banks		$	190,350		$	211,113		$	175,088		$	188,373		$	191,486
Interest-bearing deposits in banks			893,221			517,971			58,933			196,426			76,378
Investment securities			5,109,631			4,393,029			4,431,280			4,118,863			4,107,069
Loans, held-for-investment			5,322,562			5,171,033			5,293,679			5,253,067			4,639,389
	Allowance for loan losses		(62,974)			(66,534)			(76,038)			(68,947)			(60,440)
Net loans, held-for-investment			5,259,588			5,104,499			5,217,641			5,184,120			4,578,949
Loans, held-for-sale			65,405			83,969			101,055			66,370			42,034
Premises and equipment, net			142,415			142,269			141,002			138,933			139,554
Goodwill			313,481			313,481			313,481			313,481			312,842
Other intangible assets			4,499			4,911			5,394			5,884			6,392
Other assets			124,297			133,258			123,778			127,367			246,387
	Total assets	$	12,102,887		$	10,904,500		$	10,567,652		$	10,339,817		$	9,701,091

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits		$	3,350,145		$	2,982,697		$	2,950,407		$	2,941,679		$	2,288,597
Interest-bearing deposits			6,063,302			5,693,120			5,344,481			5,215,963			4,921,869
	Total deposits		9,413,447			8,675,817			8,294,888			8,157,642			7,210,466
Borrowings			548,604			430,093			503,163			449,224			857,871
Other liabilities			475,408			120,400			150,100			150,502			106,392
Shareholders' equity			1,665,428			1,678,190			1,619,501			1,582,449			1,526,362
	Total liabilities and shareholders' equity	$	12,102,887		$	10,904,500		$	10,567,652		$	10,339,817		$	9,701,091

		Quarter Ended
			2021			2020
INCOME STATEMENTS			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Interest income		$	90,610		$	92,457		$	91,373		$	92,197		$	88,100
Interest expense			1,786			1,920			2,163			2,962			7,198
Net interest income			88,824			90,537			89,210			89,235			80,902
Provision for credit losses			(1,997)			(8,033)			9,000			8,700			9,850
Net interest income after provisions for credit losses			90,821			98,570			80,210			80,535			71,052
Noninterest income			34,874			35,709			38,575			36,919			28,732
Noninterest expense			57,723			63,705			55,593			53,321			55,318
	Net income before income taxes		67,972			70,574			63,192			64,133			44,466
Income tax expense			11,054			12,099			10,335			10,663			7,234
	Net income	$	56,918		$	58,475		$	52,857		$	53,470		$	37,232

PER COMMON SHARE DATA
Net income - basic		$	0.40		$	0.41		$	0.37		$	0.38		$	0.26
Net income - diluted			0.40			0.41			0.37			0.38			0.26
Cash dividends declared			0.13			0.13			0.13			0.13			0.12
Book value			11.70			11.80			11.40			11.14			10.73
Tangible book value			9.47			9.57			9.15			8.89			8.48
Market value		$	46.73		$	36.17		$	27.91		$	28.89		$	26.84
Shares outstanding - end of period			142,285,611			142,161,834			142,121,595			142,035,396			142,314,930
Average outstanding shares - basic			142,146,275			142,057,705			141,980,707			141,973,522			142,118,864
Average outstanding shares - diluted			143,002,658			142,644,088			142,529,242			142,454,083			142,735,208

PERFORMANCE RATIOS
Return on average assets			2.05	%		2.19	%		2.01	%		2.06	%		1.63	%
Return on average equity			13.83			14.27			13.14			14.00			10.11
Return on average tangible equity			17.09			17.74			16.41			17.67			12.89
Net interest margin (tax equivalent)			3.55			3.75			3.75			3.78			3.91
Efficiency ratio			45.36			49.15			42.45			41.32			49.63

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)

		Quarter Ended
			2021			2020
ALLOWANCE FOR LOAN LOSSES			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Balance at beginning of period		$	66,534		$	76,038		$	68,947		$	60,440		$	52,499
Loans charged off			(574)			(1,339)			(853)			(894)			(2,227)
Loan recoveries			443			778			444			701			318
Net recoveries (charge-offs)			(131)			(561)			(409)			(193)			(1,909)
Initial adoption of ASU 2016-13 (CECL) - recorded in retained earnings			-			(619)			-			-			-
Reclassification of credit marks on purchased credit deteriorated (PCD) loans			-			1,678			-			-			-
Provision for loan losses			(3,429)			(10,002)			7,500			8,700			9,850
Balance at end of period		$	62,974		$	66,534		$	76,038		$	68,947		$	60,440

ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period		$	5,486		$	2,309		$	809		$	809		$	809
Initial adoption of ASU 2016-13 (CECL) - recorded in retained earnings			-			1,208			-			-			-
Provision for unfunded commitments			1,432			1,969			1,500			-			-
Balance at end of period		$	6,918		$	5,486		$	2,309		$	809		$	809

Allowance for loan losses /
period-end loans held-for-investment			1.18	%		1.29	%		1.44	%		1.31	%		1.30	%
Allowance for loan losses /
nonperforming loans			160.00			155.61			177.99			174.83			153.16
Net charge-offs / average total loans
(annualized)			0.01			0.04			0.03			0.01			0.16

SUMMARY OF LOAN CLASSIFICATION
Special Mention		$	61,866		$	56,585		$	66,033		$	63,489		$	87,099
Substandard			128,550			140,866			136,010			137,408			103,249
Doubtful			-			-			-			-			-
	Total classified loans	$	190,416		$	197,451		$	202,043		$	200,897		$	190,348

NONPERFORMING ASSETS
Nonaccrual loans		$	39,333		$	42,619		$	42,673		$	39,320		$	39,226
Accruing troubled debt restructured loans			23			24			25			25			26
Accruing loans 90 days past due			2			113			23			92			209
	Total nonperforming loans		39,358			42,756			42,721			39,437			39,461
Foreclosed assets			300			142			331			287			983
	Total nonperforming assets	$	39,658		$	42,898		$	43,052		$	39,724		$	40,444

As a % of loans held-for-investment and foreclosed assets			0.75	%		0.83	%		0.81	%		0.76	%		0.87	%
As a % of end of period total assets			0.33			0.39			0.41			0.38			0.42

OIL AND GAS PORTFOLIO INFORMATION *
Oil and gas loans		$	105,261		$	106,237		$	118,567		$	128,143		$	117,223
Oil and gas loans as a % of total loans held-for-investment			2.20	%		2.27	%		2.58	%		2.82	%		2.53	%
Classified oil and gas loans			10,079			13,298			26,823			28,366			22,032
Nonaccrual oil and gas loans			4,759			4,774			6,800			3,702			3,477
Net charge-offs for oil and gas loans			40			24			-			195			606
* Excluding PPP loans

RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *
Retail loans		$	282,310		$	216,244		$	229,386		$	216,244		$	217,380
Restaurant loans			51,772			48,618			39,523			46,418			25,570
Hotel loans			71,435			71,716			63,273			51,957			46,690
Other hospitality loans			24,014			21,970			26,041			23,230			8,470
Travel loans			664			780			801			908			937
	Total Retail/Restaurant/Hospitality loans	$	430,195		$	359,328		$	359,024		$	338,757		$	299,047

Retail/Restaurant/Hospitality loans as a % of total loans held-for-investment			8.98	%		7.67	%		7.82	%		7.45	%		6.45	%
Classified Retail/Restaurant/Hospitality loans		$	45,214		$	31,192		$	28,171		$	15,837		$	5,680
Nonaccrual Retail/Restaurant/Hospitality loans			6,575			5,975			5,689			5,752			867
Net Charge-offs for Retail/Restaurant/Hospitality loans			-			561			26			178			130
* Excluding PPP loans

CAPITAL RATIOS
Common equity Tier 1 capital ratio			20.32	%		20.79	%		20.56	%		20.78	%		19.55	%
Tier 1 capital ratio			20.32			20.79			20.56			20.78			19.55
Total capital ratio			21.47			22.03			21.82			22.03			20.65
Tier 1 leverage ratio			11.55			11.86			11.65			11.25			12.49
Tangible common equity ratio			12.35			12.71			12.61			12.00			13.09
Equity/Assets ratio			13.76			15.39			15.33			15.30			15.73


		Quarter Ended
			2021			2020
NONINTEREST INCOME			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Trust fees		$	8,299		$	7,672		$	7,461		$	6,961		$	7,437
Service charges on deposits			4,793			5,330			5,009			4,318			5,915
ATM, interchange and credit card fees			8,677			8,376			8,644			8,049			7,400
Gain on sale and fees on mortgage loans			9,894			11,116			15,228			13,676			3,852
Net gain on sale of available-for-sale securities			808			23			36			1,512			2,062
Net gain on sale of foreclosed assets			55			87			19			52			1
Net gain (loss) on sale of assets			145			22			(2)			(24)			116
Interest on loan recoveries			382			235			202			154			265
Other noninterest income			1,821			2,848			1,978			2,221			1,684
	Total noninterest income	$	34,874		$	35,709		$	38,575		$	36,919		$	28,732

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing		$	32,636		$	34,773		$	32,104		$	28,836		$	28,670
Profit sharing expense			2,295			6,245			1,545			1,978			972
Net occupancy expense			3,147			3,067			3,193			3,101			3,027
Equipment expense			2,164			2,154			2,157			2,010			2,075
FDIC insurance premiums			701			663			587			463			45
ATM, interchange and credit card expenses			2,772			2,811			2,829			2,610			2,985
Legal, tax and professional fees			2,726			2,302			2,615			2,931			2,921
Audit fees			281			407			526			739			411
Printing, stationery and supplies			325			449			615			533			566
Amortization of intangible assets			412			483			490			508			509
Advertising and public relations			1,388			1,600			797			1,011			1,195
Operational and other losses			287			537			621			728			576
Software amortization and expense			2,619			2,563			2,265			2,010			2,024
Other noninterest expense			5,970			5,651			5,249			5,863			9,342
	Total noninterest expense	$	57,723		$	63,705		$	55,593		$	53,321		$	55,318

TAX EQUIVALENT YIELD ADJUSTMENT		$	3,547		$	3,355		$	3,170		$	2,902		$	1,834

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)

		Three Months Ended						Three Months Ended
		Mar. 31, 2021						Dec. 31, 2020
			Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
			Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold		$	1,942	$	3	0.58	%	$	-	$	-	-	%
Interest-bearing deposits in nonaffiliated banks			637,129		159	0.10			195,637		50	0.10
Taxable securities			2,251,419		10,264	1.82			2,086,419		10,708	2.05
Tax exempt securities			2,368,615		16,979	2.87			2,318,912		16,733	2.89
Loans			5,296,149		66,753	5.11			5,356,229		68,321	5.07
Total interest-earning assets			10,555,254	$	94,158	3.62	%		9,957,197	$	95,812	3.83	%
Noninterest-earning assets			700,550						674,229
	Total assets	$	11,255,804					$	10,631,426

Interest-bearing liabilities:
Deposits		$	5,916,237	$	1,696	0.12	%	$	5,479,873	$	1,826	0.13	%
Borrowings			456,620		91	0.08			428,117		94	0.09
Total interest-bearing liabilities			6,372,857	$	1,787	0.11	%		5,907,990	$	1,920	0.13	%
Noninterest-bearing liabilities			3,214,237						3,093,637
Shareholders' equity			1,668,710						1,629,799
	Total liabilities and shareholders' equity	$	11,255,804					$	10,631,426

Net interest income and margin (tax equivalent)				$	92,371	3.55	%			$	93,892	3.75	%

		Three Months Ended						Three Months Ended
		Sept. 30, 2020						June 30, 2020
			Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
			Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold		$	2,009	$	3	0.51	%	$	840	$	1	0.51	%
Interest-bearing deposits in nonaffiliated banks			223,104		59	0.10			352,628		86	0.10
Taxable securities			2,187,547		12,063	2.21			2,399,364		14,030	2.34
Tax exempt securities			2,058,032		15,737	3.06			1,800,339		14,733	3.27
Loans			5,334,174		66,681	4.97			5,248,052		66,249	5.08
Total interest-earning assets			9,804,866	$	94,543	3.84	%		9,801,223	$	95,099	3.90	%
Noninterest-earning assets			671,374						663,595
	Total assets	$	10,476,240					$	10,464,818

Interest-bearing liabilities:
Deposits		$	5,270,600	$	2,064	0.16	%	$	5,135,772	$	2,550	0.20	%
Borrowings			482,555		99	0.08			877,076		412	0.19
Total interest-bearing liabilities			5,753,155	$	2,163	0.15	%		6,012,848	$	2,962	0.20	%
Noninterest-bearing liabilities			3,122,995						2,915,461
Shareholders' equity			1,600,090						1,536,509
	Total liabilities and shareholders' equity	$	10,476,240					$	10,464,818

Net interest income and margin (tax equivalent)				$	92,380	3.75	%			$	92,137	3.78	%

		Three Months Ended
		Mar. 31, 2020
			Average		Tax Equivalent	Yield /
			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold		$	2,712	$	10	1.50	%
Interest-bearing deposits in nonaffiliated banks			220,906		745	1.36
Taxable securities			2,263,329		14,655	2.59
Tax exempt securities			1,346,842		11,200	3.33
Loans			4,667,436		63,323	5.46
Total interest-earning assets			8,501,225	$	89,933	4.25	%
Noninterest-earning assets			692,432
	Total assets	$	9,193,657

Interest-bearing liabilities:
Deposits		$	4,904,087	$	6,680	0.55	%
Borrowings			460,605		517	0.45
Total interest-bearing liabilities			5,364,692	$	7,197	0.54	%
Noninterest-bearing liabilities			2,348,485
Shareholders' equity			1,480,480
	Total liabilities and shareholders' equity	$	9,193,657

Net interest income and margin (tax equivalent)				$	82,736	3.91	%

View original content:http://www.prnewswire.com/news-releases/first-financial-bankshares-announces-first-quarter-2021-earnings-301275419.html

SOURCE First Financial Bankshares, Inc.

First Financial Bankshares Announces First Quarter 2021 Earnings