ABILENE, Texas, July 21, 2022 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ:FFIN) today reported earnings of $60.49 million for the second quarter of 2022 compared to earnings of $56.38 million for the same quarter a year ago. Basic and diluted earnings per share were $0.42 for the second quarter of 2022 compared with $0.40 and $0.39, respectively, for the second quarter of 2021. Through July 20, 2022, the Company has repurchased 244,559 shares of its common stock at an average price of $38.61. Currently, the Company has 4.75 million shares remaining under the share repurchase authorization through July 31, 2023.

As further described below, the results this quarter compared to the same quarter a year ago included (i) an increase in the provision for credit losses of $6.56 million; (ii) a $4.93 million decrease in PPP loan origination fees; and (iii) a $2.56 million decrease in mortgage revenues. Offsetting these items were the following increases (i) in net interest income, excluding lower PPP loan origination fees, of $12.76 million from continued balance sheet growth; (ii) in gains on the sale of investment securities of $1.64 million; and (iii) in interest on loan recoveries of $945 thousand.

"We have been able to keep the momentum that was created from the movement of non-customers to our bank during the pandemic. Our results reflect outstanding growth this quarter reflected by overall loan growth, excluding PPP and held-for-sale loans, of $325.85 million, or 23.5 percent annualized, and deposit growth of $123.16 million, or 4.49 percent annualized, with the addition of over 6,500 net new accounts year-to-date," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. "We are excited about our results this quarter while actively monitoring changes in interest rates and the overall economic environment. We are prepared for the opportunities ahead as the Texas economy continues to be strong and resilient. We appreciate the continued support of our customers, shareholders and associates," Dueser added.

Net interest income for the second quarter of 2022 was $98.78 million compared to $90.95 million for the second quarter of 2021. The net interest margin, on a taxable equivalent basis, was 3.28 percent for the second quarter of 2022 compared to 3.22 percent for the first quarter of 2022 and 3.36 percent in the second quarter of 2021. The growth in net interest income was driven by higher average interest-earning assets which increased to $12.49 billion for the second quarter of 2022 compared to $11.30 billion a year ago, partially offset by lower PPP loan origination fees which totaled $313 thousand in the second quarter of 2022 compared to $5.24 million in the second quarter of 2021. PPP loan balances totaled $2.30 million at June 30, 2022.

The Company recorded a provision for credit losses of $5.35 million for the second quarter of 2022 compared to a reversal of provision for credit losses of $1.21 million for the second quarter of 2021. The increase in the Company's provision for credit losses during the second quarter of 2022 was primarily driven by strong organic loan growth and a slight decline in the projected economic forecast. At June 30, 2022, the allowance for credit losses totaled $71.93 million, or 1.22 percent of loans held-for-investment ("loans" hereafter), compared to $62.14 million at June 30, 2021, or 1.17 percent of loans. Additionally, the reserve for unfunded commitments totaled $8.72 million at June 30, 2022 compared to $6.75 million at June 30, 2021.

For the second quarter of 2022, net recoveries totaled $916 thousand compared to net recoveries of $203 thousand for the second quarter of 2021. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.43 percent at June 30, 2022, compared with 0.57 percent at June 30, 2021. Classified loans totaled $152.67 million at June 30, 2022, compared to $174.99 million at June 30, 2021.

Noninterest income for the second quarter of 2022 was $37.32 million compared to $34.67 million for the second quarter of 2021, representing a net increase of $2.64 million from the following:

Trust fees increased $1.05 million to $9.74 million for the second quarter of 2022 compared to $8.69 million for the second quarter of 2021 driven mainly by the continued increase in oil and gas revenue.
Service charges on deposits increased $1.11 million for the second quarter of 2022 compared to the second quarter of 2021 primarily due to the continued increase in net new accounts.
ATM, interchange, and credit card fees increased $715 thousand for the second quarter of 2022 compared to the same quarter a year ago primary due to an increase in debit cards issued. Effective July 1, 2022, the Company became subject to regulations imposed by the Federal Reserve that will reduce future interchange revenue (aka. "Durbin Amendment").
Mortgage income was $5.73 million for the second quarter of 2022 compared to $8.29 million for the second quarter of 2021 due to lower overall origination volumes and margins.
Recoveries of interest on previously charged-off or nonaccrual loans totaled $1.65 million for the second quarter of 2022 compared to $704 thousand for the second quarter of 2021.
Gains on sales of securities were $1.65 million during the second quarter of 2022 compared to $5 thousand for the second quarter of 2021.

Noninterest expense for the second quarter of 2022 totaled $58.33 million compared to $59.37 million for the second quarter of 2021, as a result of the following:

Salary, commissions, and employee benefit costs totaled $33.15 million for the second quarter of 2022, compared to $35.05 million in the second quarter of 2021 reflecting annual merit-based and market driven pay increases effective March 1, 2022 offset by lower mortgage compensation expenses of $1.49 million and a decrease of $803 thousand in profit sharing expenses.
Noninterest expenses, excluding salary related costs, increased $858 thousand for the second quarter of 2022 compared to the same period in 2021, primarily related to increases in FDIC insurance, deposit account charge-offs, interchange processing costs, and loan processing costs.

The Company's efficiency ratio improved to 41.83 percent for the second quarter of 2022 compared to 45.94 percent for the second quarter of 2021.

As of June 30, 2022, consolidated total assets were $13.26 billion compared to $12.33 billion at June 30, 2021. Loans totaled $5.88 billion at June 30, 2022, compared with loans of $5.30 billion at June 30, 2021. Loans, excluding PPP loans, grew $325.85 million for the second quarter of 2022 and $540.10 million for the first half of 2022. Deposits totaled $11.12 billion at June 30, 2022, compared to $9.78 billion at June 30, 2021.

Shareholders' equity was $1.33 billion as of June 30, 2022, compared to $1.49 billion and $1.72 billion at March 31, 2022, and June 30, 2021, respectively, as a result of changes in other comprehensive income ("OCI") due to increasing interest rates over the last two quarters. The unrealized loss on the available-for-sale investment securities portfolio, net of applicable tax, totaled $400.51 million at June 30, 2022, compared to an unrealized loss of $209.58 million at March 31, 2022 and an unrealized gain of $136.49 million at June 30, 2021.

About First Financial Bankshares, Inc.

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

The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at https://www.ffin.com.

Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect," "plan," "anticipate," "target," "forecast," and "goal". Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; economic impact of oil and gas prices and the pandemic, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents and Filings" on the Company's Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.


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


	As of
		2022						2021
ASSETS		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Cash and due from banks	$	242,665		$	203,187		$	205,053		$	201,901		$	190,061
Interest-bearing deposits in banks		222,899			394,566			323,535			359,241			654,531
Investment securities		6,215,036			6,502,495			6,573,179			6,119,984			5,578,048
Loans, held-for-investment, excluding PPP Loans		5,876,281			5,550,430			5,336,179			5,147,160			4,984,210
PPP loans		2,301			15,739			52,793			139,334			320,392
Total loans, held-for-investment		5,878,582			5,566,169			5,388,972			5,286,494			5,304,602
Allowance for loan losses		(71,932)			(66,913)			(63,465)			(63,370)			(62,138)
Net loans, held-for-investment		5,806,650			5,499,256			5,325,507			5,223,124			5,242,464
Loans, held-for-sale		26,445			27,670			37,810			47,721			61,802
Premises and equipment, net		149,280			150,168			149,764			147,516			147,655
Goodwill		313,481			313,481			313,481			313,481			313,481
Other intangible assets		2,658			2,978			3,298			3,689			4,087
Other assets		281,098			220,399			170,834			126,601			136,954
Total assets	$	13,260,212		$	13,314,200		$	13,102,461		$	12,543,258		$	12,329,083

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	4,104,034		$	3,978,724		$	3,780,230		$	3,574,405		$	3,427,038
Interest-bearing deposits		7,018,949			7,021,101			6,786,258			6,318,712			6,354,656
Total deposits		11,122,983			10,999,825			10,566,488			9,893,117			9,781,694
Borrowings		768,364			758,595			671,152			648,679			549,969
Trade date payable		-			-			-			174,236			189,838
Other liabilities		39,847			67,031			105,597			93,491			87,213
Shareholders' equity		1,329,018			1,488,749			1,759,224			1,733,735			1,720,369
Total liabilities and shareholders' equity	$	13,260,212		$	13,314,200		$	13,102,461		$	12,543,258		$	12,329,083

	Quarter Ended
		2022						2021
INCOME STATEMENTS		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Interest income	$	101,981		$	97,009		$	95,995		$	97,198		$	92,602
Interest expense		3,199			1,570			1,187			1,416			1,653
Net interest income		98,782			95,439			94,808			95,782			90,949
Provision for credit losses		5,350			4,782			2,064			-			(1,206)
Net interest income after provisions for credit losses		93,432			90,657			92,744			95,782			92,155
Noninterest income		37,317			34,881			34,903			37,726			34,673
Noninterest expense		58,333			59,225			61,672			62,939			59,374
Net income before income taxes		72,416			66,313			65,975			70,569			67,454
Income tax expense		11,922			10,341			10,638			11,641			11,075
Net income	$	60,494		$	55,972		$	55,337		$	58,928		$	56,379

PER COMMON SHARE DATA
Net income - basic	$	0.42		$	0.39		$	0.39		$	0.41		$	0.40
Net income - diluted		0.42			0.39			0.39			0.41			0.39
Cash dividends declared		0.17			0.15			0.15			0.15			0.15
Book value		9.32			10.43			12.34			12.17			12.08
Tangible book value		7.10			8.21			10.12			9.94			9.85
Market value		39.27			44.12			50.84			45.95			49.13
Shares outstanding - end of period		142,586,601			142,704,495			142,532,116			142,467,687			142,359,774
Average outstanding shares - basic		142,682,251			142,558,743			142,437,804			142,334,449			142,245,555
Average outstanding shares - diluted		143,238,669			143,302,063			143,251,521			143,218,920			143,164,611


PERFORMANCE RATIOS
Return on average assets		1.82	%		1.71	%		1.74	%		1.90	%		1.89	%
Return on average equity		17.26			13.53			12.63			13.43			13.38
Return on average tangible equity		22.27			16.68			15.45			16.43			16.48
Net interest margin (tax equivalent)		3.28			3.22			3.29			3.41			3.36
Efficiency ratio		41.83			44.16			46.18			45.88			45.94


	Six Months Ended
	June 30,
INCOME STATEMENTS		2022			2021
Interest income	$	198,990		$	183,212
Interest expense		4,769			3,439
Net interest income		194,221			179,773
Provision for credit losses		10,132			(3,203)
Net interest income after provisions for credit losses		184,089			182,976
Noninterest income		72,198			69,548
Noninterest expense		117,558			117,098
Net income before income taxes		138,729			135,426
Income tax expense		22,263			22,129
Net income	$	116,466		$	113,297

PER COMMON SHARE DATA
Net income - basic	$	0.82		$	0.80
Net income - diluted		0.81			0.79
Cash dividends declared		0.32			0.28
Book value		9.32			12.08
Tangible book value		7.10			9.85
Market value	$	39.27		$	49.13
Shares outstanding - end of period		142,586,601			142,359,774
Average outstanding shares - basic		142,620,838			142,196,190
Average outstanding shares - diluted		143,273,391			143,102,608

PERFORMANCE RATIOS
Return on average assets		1.77	%		1.97	%
Return on average equity		15.24			13.61
Return on average tangible equity		19.18			16.78
Net interest margin (tax equivalent)		3.25			3.45
Efficiency ratio		42.97			45.65

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

	Quarter Ended
		2022						2021
ALLOWANCE FOR LOAN LOSSES		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Balance at beginning of period	$	66,913		$	63,465		$	63,370		$	62,138		$	62,974
Loans charged off		(275)			(659)			(3,067)			(1,475)			(392)
Loan recoveries		1,191			360			783			2,707			595
Net recoveries (charge-offs)		916			(299)			(2,284)			1,232			203
Provision for loan losses		4,103			3,747			2,379			-			(1,039)
Balance at end of period	$	71,932		$	66,913		$	63,465		$	63,370		$	62,138

ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	7,471		$	6,436		$	6,751		$	6,751		$	6,918
Provision for unfunded commitments		1,247			1,035			(315)			-			(167)
Balance at end of period	$	8,718		$	7,471		$	6,436		$	6,751		$	6,751

Allowance for loan losses /
period-end loans held-for-investment		1.22	%		1.20	%		1.18	%		1.20	%		1.17	%
Allowance for loan losses /
nonperforming loans		281.90			232.71			200.33			250.92			208.45
Net charge-offs (recoveries) / average total loans
(annualized)		(0.06)			0.02			0.17			(0.09)			(0.02)


	Quarter Ended
		2022						2021
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Commercial:
C&I	$	837,627		$	822,310		$	784,282		$	680,263		$	662,711
PPP		2,301			15,739			52,793			139,334			320,392
Municipal		200,577			191,799			177,905			165,847			179,356
Total Commercial		1,040,505			1,029,848			1,014,980			985,444			1,162,459
Agriculture		90,420			82,883			98,089			98,947			95,212
Real Estate:
Construction & Development		928,644			806,211			749,793			656,530			550,928
Farm		250,028			225,942			217,220			203,064			185,288
Non-Owner Occupied CRE		636,432			636,160			623,434			674,958			673,608
Owner Occupied CRE		909,899			881,181			821,653			824,231			820,055
Residential		1,412,125			1,352,162			1,334,419			1,328,798			1,328,474
Total Real Estate		4,137,128			3,901,656			3,746,519			3,687,581			3,558,353
Consumer:
Auto		468,147			419,818			405,416			394,072			383,764
Non-Auto		142,382			131,964			123,968			120,450			104,814
Total Consumer		610,529			551,782			529,384			514,522			488,578

Total loans held-for-investment	$	5,878,582		$	5,566,169		$	5,388,972		$	5,286,494		$	5,304,602

SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	46,512		$	47,445		$	55,670		$	53,620		$	54,497
Substandard		106,156			104,715			105,515			112,151			120,497
Doubtful		-			-			-			-			-
Total classified loans	$	152,668		$	152,160		$	161,185		$	165,771		$	174,994

NONPERFORMING ASSETS
Nonaccrual loans	$	25,475		$	28,723		$	31,652		$	25,210		$	29,786
Accruing troubled debt restructured loans		20			20			21			22			23
Accruing loans 90 days past due		22			11			8			23			-
Total nonperforming loans		25,517			28,754			31,681			25,255			29,809
Foreclosed assets		-			-			2,477			28			305
Total nonperforming assets	$	25,517		$	28,754		$	34,158		$	25,283		$	30,114

As a % of loans held-for-investment and foreclosed assets		0.43	%		0.52	%		0.63	%		0.48	%		0.57	%
As a % of end of period total assets		0.19			0.22			0.26			0.20			0.24


	Quarter Ended
		2022						2021
CAPITAL RATIOS		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Common equity Tier 1 capital ratio		18.50	%		19.00	%		19.35	%		19.71	%		20.04	%
Tier 1 capital ratio		18.50			19.00			19.35			19.71			20.04
Total capital ratio		19.54			20.01			20.34			20.76			21.12
Tier 1 leverage ratio		10.65			10.78			11.13			11.19			11.10
Tangible common equity ratio		7.83			9.02			11.28			11.59			11.68
Equity/Assets ratio		10.02			11.18			13.43			13.82			13.95

	Quarter Ended
		2022						2021
NONINTEREST INCOME		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Trust fees	$	9,742		$	9,817		$	9,670		$	9,484		$	8,692
Service charges on deposits		6,038			5,706			5,762			5,673			4,928
ATM, interchange and credit card fees		10,568			9,528			9,955			9,793			9,853
Gain on sale and fees on mortgage loans		5,728			6,333			6,272			8,788			8,291
Net gain on sale of available-for-sale securities		1,648			31			1			1			5
Net gain on sale of foreclosed assets		18			1,084			107			27			1
Net gain (loss) on sale of assets		6			(10)			(3)			(6)			74
Interest on loan recoveries		1,649			283			1,207			1,746			704
Other noninterest income		1,920			2,109			1,932			2,220			2,125
Total noninterest income	$	37,317		$	34,881		$	34,903		$	37,726		$	34,673

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	31,840		$	32,540		$	31,876		$	34,460		$	32,936
Profit sharing expense		1,307			1,598			3,099			2,630			2,110
Net occupancy expense		3,292			3,225			3,333			3,288			3,241
Equipment expense		2,346			2,257			2,382			2,450			2,177
FDIC insurance premiums		904			869			848			815			766
ATM, interchange and credit card expenses		3,201			2,968			3,227			2,935			3,039
Legal, tax and professional fees		2,513			2,957			2,835			2,893			3,352
Audit fees		450			451			423			466			430
Printing, stationery and supplies		501			540			664			432			489
Amortization of intangible assets		320			320			391			398			412
Advertising, meals and public relations		1,554			1,493			1,842			1,746			1,392
Operational and other losses		782			596			1,385			1,087			534
Software amortization and expense		2,522			2,457			2,817			2,855			2,829
Other noninterest expense		6,801			6,954			6,550			6,484			5,667
Total noninterest expense	$	58,333		$	59,225		$	61,672		$	62,939		$	59,374

TAX EQUIVALENT YIELD ADJUSTMENT	$	3,366		$	3,782		$	3,841		$	3,670		$	3,633


	Six Months Ended
	June 30,
NONINTEREST INCOME		2022			2021
Trust fees	$	19,559		$	16,991
Service charges on deposits		11,744			9,721
ATM, interchange and credit card fees		20,096			18,530
Gain on sale and fees on mortgage loans		12,061			18,185
Net gain on sale of available-for-sale securities		1,679			813
Net gain on sale of foreclosed assets		1,102			56
Net gain (loss) on sale of assets		(4)			219
Interest on loan recoveries		1,932			1,086
Other noninterest income		4,029			3,947
Total noninterest income	$	72,198		$	69,548

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	64,380		$	65,572
Profit sharing expense		2,905			4,405
Net occupancy expense		6,517			6,388
Equipment expense		4,603			4,341
FDIC insurance premiums		1,773			1,467
ATM, interchange and credit card expenses		6,169			5,811
Legal, tax and professional fees		5,470			6,078
Audit fees		901			870
Printing, stationery and supplies		1,041			814
Amortization of intangible assets		640			824
Advertising, meals and public relations		3,047			2,780
Operational and other losses		1,378			821
Software amortization and expense		4,979			5,448
Other noninterest expense		13,755			11,479
Total noninterest expense	$	117,558		$	117,098

TAX EQUIVALENT YIELD ADJUSTMENT	$	7,148		$	7,180

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

	Three Months Ended						Three Months Ended
	June 30, 2022						Mar. 31, 2022
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	1,466	$	5	1.45	%	$	1,015	$	1	0.52	%
Interest-bearing deposits in nonaffiliated banks		288,784		547	0.76			171,970		94	0.22
Taxable securities		4,101,751		19,151	1.87			4,231,949		17,823	1.68
Tax exempt securities		2,376,324		17,166	2.89			2,612,025		18,107	2.77
Loans		5,720,804		68,478	4.80			5,487,538		64,766	4.79
Total interest-earning assets		12,489,129	$	105,347	3.38	%		12,504,497	$	100,791	3.27	%
Noninterest-earning assets		825,711						744,810
Total assets	$	13,314,840					$	13,249,307
Interest-bearing liabilities:
Deposits	$	7,049,041	$	2,967	0.17	%	$	6,898,059	$	1,369	0.08	%
Borrowings		730,477		232	0.13			781,314		201	0.10
Total interest-bearing liabilities		7,779,518	$	3,199	0.16	%		7,679,373	$	1,570	0.08	%
Noninterest-bearing deposits		4,064,207						3,827,451
Other noninterest-bearing liabilities		65,475						64,999
Shareholders' equity		1,405,640						1,677,484
Total liabilities and shareholders' equity	$	13,314,840					$	13,249,307

Net interest income and margin (tax equivalent)			$	102,148	3.28	%			$	99,221	3.22	%

	Three Months Ended						Three Months Ended
	Dec. 31, 2021						Sept. 30, 2021
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	82	$	-	0.48	%	$	1,554	$	2	0.51	%
Interest-bearing deposits in nonaffiliated banks		320,102		124	0.15			612,551		236	0.15
Taxable securities		3,590,137		13,556	1.51			3,081,215		12,122	1.57
Tax exempt securities		2,636,360		18,163	2.76			2,542,606		17,701	2.78
Loans		5,347,069		67,993	5.04			5,337,807		70,807	5.26
Total interest-earning assets		11,893,750	$	99,836	3.33	%		11,575,733	$	100,868	3.46	%
Noninterest-earning assets		726,932						705,099
Total assets	$	12,620,682					$	12,280,832
Interest-bearing liabilities:
Deposits	$	6,399,343	$	1,110	0.07	%	$	6,346,267	$	1,340	0.08	%
Borrowings		639,725		77	0.05			599,934		76	0.05
Total interest-bearing liabilities		7,039,068	$	1,187	0.07	%		6,946,201	$	1,416	0.08	%
Noninterest-bearing deposits		3,744,848						3,490,685
Other noninterest-bearing liabilities		99,091						103,446
Shareholders' equity		1,737,675						1,740,500
Total liabilities and shareholders' equity	$	12,620,682					$	12,280,832

Net interest income and margin (tax equivalent)			$	98,649	3.29	%			$	99,452	3.41	%

	Three Months Ended
	June 30, 2021
		Average		Tax Equivalent	Yield /
		Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	3,049	$	4	0.54	%
Interest-bearing deposits in nonaffiliated banks		796,835		211	0.11
Taxable securities		2,656,211		11,449	1.72
Tax exempt securities		2,461,924		17,410	2.83
Loans		5,383,781		67,161	5.00
Total interest-earning assets		11,301,800	$	96,235	3.42	%
Noninterest-earning assets		692,282
Total assets	$	11,994,082
Interest-bearing liabilities:
Deposits	$	6,229,991	$	1,560	0.10	%
Borrowings		527,669		93	0.07
Total interest-bearing liabilities		6,757,660	$	1,653	0.10	%
Noninterest-bearing deposits		3,439,683
Other noninterest-bearing liabilities		106,994
Shareholders' equity		1,689,745
Total liabilities and shareholders' equity	$	11,994,082

Net interest income and margin (tax equivalent)			$	94,582	3.36	%

	Six Months Ended						Six Months Ended
	June 30, 2022						June 30, 2021
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	1,241	$	7	1.07	%	$	2,499	$	7	0.56	%
Interest-bearing deposits in nonaffiliated banks		230,700		641	0.56			717,423		370	0.10
Taxable securities		4,166,490		36,974	1.77			2,454,933		21,712	1.77
Tax exempt securities		2,493,523		35,273	2.83			2,415,527		34,389	2.85
Loans		5,604,815		133,243	4.79			5,340,207		133,914	5.06
Total interest-earning assets		12,496,769	$	206,138	3.33	%		10,930,589	$	190,392	3.51	%
Noninterest-earning assets		785,486						696,393
Total assets	$	13,282,255					$	11,626,982
Interest-bearing liabilities:
Deposits	$	6,973,967	$	4,336	0.13	%	$	6,073,981	$	3,255	0.11	%
Borrowings		755,755		433	0.12			492,341		184	0.08
Total interest-bearing liabilities		7,729,722	$	4,769	0.12	%		6,566,322	$	3,439	0.11	%
Noninterest-bearing deposits		3,946,483						3,278,067
Other noninterest-bearing liabilities		65,239						103,307
Shareholders' equity		1,540,811						1,679,286
Total liabilities and shareholders' equity	$	13,282,255					$	11,626,982

Net interest income and margin (tax equivalent)			$	201,369	3.25	%			$	186,953	3.45	%

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SOURCE First Financial Bankshares, Inc.

FIRST FINANCIAL BANKSHARES ANNOUNCES SECOND QUARTER 2022 EARNINGS