ABILENE, Texas, Oct. 20, 2022 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company") (NASDAQ:FFIN) today reported earnings of $59.34 million for the third quarter of 2022 compared to earnings of $58.93 million for the same quarter a year ago. Diluted earnings per share were $0.41 for both the third quarter of 2022 and 2021. As of September 30, 2022, the Company has 4.75 million shares remaining under the previously announced share repurchase authorization. Through September 30, 2022, the Company has repurchased 244,559 shares of its common stock at an average price of $38.61.

As further described below, the results this quarter compared to the same quarter a year ago included an increase in net interest income of $7.37 million from continued balance sheet growth. Included in the change in net interest income was a decline in PPP loan origination fees and interest of $8.19 million when compared to the same period a year ago. Additionally, the results this quarter when compared to the same quarter a year ago were impacted by (i) an increase in the provision for credit losses of $3.22 million; (ii) a decrease in interest on loan recoveries of $1.08 million; (iii) a decrease in debit card fees of $3.61 million; and (iv) a decrease in mortgage revenues of $4.72 million.

"During the third quarter, we continued our momentum, driven by our focus on customer service excellence in our vibrant Texas markets, that produced strong loan growth while maintaining deposits. Our operating results for the third quarter reflect overall loan growth, excluding PPP and held-for-sale loans, of $379 million, or 25.6 percent annualized, and deposit growth of $19.14 million through the addition of over 9,300 net new accounts year-to-date," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. "We have strong capital as reflected by our regulatory capital ratios being well above required levels while maintaining combined allowances for credit losses and unfunded commitments totaling $84.99 million. We remain focused on serving our customers and delivering solid results while actively managing the impact of the current interest rate, regulatory and economic environments. We appreciate the continued support of our customers, shareholders and associates," Mr. Dueser added.

Net interest income for the third quarter of 2022 was $103.16 million compared to $95.78 million for the third quarter of 2021. The net interest margin, on a taxable equivalent basis, was 3.32 percent for the third quarter of 2022, compared to 3.28 percent for the second quarter of 2022, and 3.41 percent in the third quarter of 2021. The growth in net interest income was driven by higher average interest-earning assets which increased to $12.54 billion for the third quarter of 2022 compared to $11.58 billion a year ago, partially offset by lower PPP loan origination fees and interest which totaled $62 thousand in the third quarter of 2022 compared to $8.25 million in the third quarter of 2021. PPP loan balances totaled $202 thousand at September 30, 2022.

The Company recorded a provision for credit losses of $3.22 million for the third quarter of 2022 compared to no provision for credit losses for the third quarter of 2021. The Company's provision for credit losses during the third quarter of 2022 was primarily driven by strong organic loan growth, increases in unfunded commitments and a slight decline in the projected economic forecast metrics offset by loan recoveries and lower classified loan specific reserves. At September 30, 2022, the allowance for credit losses totaled $74.11 million, or 1.18 percent of loans held-for-investment ("loans" hereafter), compared to $63.37 million at September 30, 2021, or 1.20 percent of loans. Additionally, the reserve for unfunded commitments totaled $10.88 million at September 30, 2022 compared to $6.75 million at September 30, 2021.

For the third quarter of 2022, net recoveries totaled $1.12 million compared to net recoveries of $1.23 million for the third quarter of 2021. Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.39 percent at September 30, 2022, compared with 0.48 percent at September 30, 2021. Classified loans totaled $143.72 million at September 30, 2022, compared with $165.77 million at September 30, 2021.

Noninterest income for the third quarter of 2022 totaled $30.94 million compared to $37.73 million for the third quarter of 2021, as a result of the following:

Trust fees increased to $10.31 million for the third quarter of 2022 compared to $9.48 million for the third quarter of 2021 driven mainly by the continued increase in oil and gas revenue.
Service charges on deposits increased to $6.40 million for the third quarter of 2022 compared to $5.67 million for the third quarter of 2021 primarily due to the continued increase in net new accounts.
Debit card fees decreased by $3.61 million for the third quarter of 2022 compared to the same quarter a year ago and $4.28 million from the second quarter of 2022. The decreases were due the impact of becoming subject to regulations imposed by the Federal Reserve that limits debit card interchange revenue ("Durbin Amendment") effective July 1, 2022, and is consistent with our prior disclosures.
Mortgage income was $4.07 million for the third quarter of 2022 compared to $8.79 million for the third quarter of 2021 due to lower overall origination volumes and margins as a result of the changes in interest rates.
Recoveries of interest on previously charged-off or nonaccrual loans totaled $664 thousand for the third quarter of 2022 compared to $1.75 million for the third quarter of 2021.
Gains on sales of securities and other assets were $1.21 million during the third quarter of 2022 compared to $22 thousand for the third quarter of 2021.

Noninterest expense for the third quarter of 2022 totaled $59.44 million compared to $62.94 million for the third quarter of 2021, as a result of the following:

Salary, commissions, and employee benefit costs totaled $33.89 million for the third quarter of 2022, compared to $37.09 million in the third quarter of 2021 reflecting annual merit-based and market driven pay increases offset by lower mortgage compensation expenses of $1.26 million and a decrease of $1.87 million in profit sharing expenses.

The Company's efficiency ratio improved to 43.76 percent for the third quarter of 2022 compared to 45.88 percent for the third quarter of 2021.

As of September 30, 2022, consolidated total assets were $13.11 billion compared to $12.54 billion at September 30, 2021. Loans totaled $6.26 billion at September 30, 2022, compared with loans of $5.29 billion at September 30, 2021. Loans, excluding PPP and held-for-sale loans, grew $379.00 million during the third quarter of 2022 and $919.11 million for the first nine months of 2022. Deposits totaled $11.14 billion at September 30, 2022, compared to $9.89 billion at September 30, 2021.

Shareholders' equity was $1.13 billion as of September 30, 2022, compared to $1.33 billion and $1.73 billion at June 30, 2022, and September 30, 2021, respectively, as a result of changes in other comprehensive income ("OCI") due to increasing interest rates over the last nine months. The unrealized loss on the available-for-sale investment securities portfolio, net of applicable tax, totaled $632.42 million at September 30, 2022, compared to an unrealized loss of $400.51 million at June 30, 2022, and an unrealized gain of $109.45 million at September 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		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Cash and due from banks	$	227,298		$	242,665		$	203,187		$	205,053		$	201,901
Interest-bearing demand deposits in banks		138,484			222,899			394,566			323,535			359,241
Investment securities		5,745,443			6,215,036			6,502,495			6,573,179			6,119,984
Loans, held-for-investment, excluding PPP Loans		6,255,286			5,876,281			5,550,430			5,336,179			5,147,160
PPP loans		202			2,301			15,739			52,793			139,334
Total loans, held-for-investment		6,255,488			5,878,582			5,566,169			5,388,972			5,286,494
Allowance for credit losses		(74,108)			(71,932)			(66,913)			(63,465)			(63,370)
Net loans, held-for-investment		6,181,380			5,806,650			5,499,256			5,325,507			5,223,124
Loans, held-for-sale		18,815			26,445			27,670			37,810			47,721
Premises and equipment, net		152,646			149,280			150,168			149,764			147,516
Goodwill		313,481			313,481			313,481			313,481			313,481
Other intangible assets		2,352			2,658			2,978			3,298			3,689
Other assets		330,445			281,098			220,399			170,834			126,601
Total assets	$	13,110,344		$	13,260,212		$	13,314,200		$	13,102,461		$	12,543,258

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	4,200,792		$	4,104,034		$	3,978,724		$	3,780,230		$	3,574,405
Interest-bearing deposits		6,941,326			7,018,949			7,021,101			6,786,258			6,318,712
Total deposits		11,142,118			11,122,983			10,999,825			10,566,488			9,893,117
Borrowings		774,581			768,364			758,595			671,152			648,679
Trade date payable		-			-			-			-			174,236
Other liabilities		61,030			39,847			67,031			105,597			93,491
Shareholders' equity		1,132,615			1,329,018			1,488,749			1,759,224			1,733,735
Total liabilities and shareholders' equity	$	13,110,344		$	13,260,212		$	13,314,200		$	13,102,461		$	12,543,258

	Quarter Ended
		2022									2021
INCOME STATEMENTS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Interest income	$	112,728		$	101,981		$	97,009		$	95,995		$	97,198
Interest expense		9,572			3,199			1,570			1,187			1,416
Net interest income		103,156			98,782			95,439			94,808			95,782
Provision for credit losses		3,221			5,350			4,782			2,064			-
Net interest income after provision for credit losses		99,935			93,432			90,657			92,744			95,782
Noninterest income		30,943			37,317			34,881			34,903			37,726
Noninterest expense		59,442			58,333			59,225			61,672			62,939
Net income before income taxes		71,436			72,416			66,313			65,975			70,569
Income tax expense		12,095			11,922			10,341			10,638			11,641
Net income	$	59,341		$	60,494		$	55,972		$	55,337		$	58,928

PER COMMON SHARE DATA
Net income - basic	$	0.42		$	0.42		$	0.39		$	0.39		$	0.41
Net income - diluted		0.41			0.42			0.39			0.39			0.41
Cash dividends declared		0.17			0.17			0.15			0.15			0.15
Book value		7.94			9.32			10.43			12.34			12.17
Tangible book value		5.73			7.10			8.21			10.12			9.94
Market value		41.83			39.27			44.12			50.84			45.95
Shares outstanding - end of period		142,628,163			142,586,601			142,704,495			142,532,116			142,467,687
Average outstanding shares - basic		142,524,500			142,682,251			142,558,743			142,437,804			142,334,449
Average outstanding shares - diluted		143,126,088			143,238,669			143,302,063			143,251,521			143,218,920


PERFORMANCE RATIOS
Return on average assets		1.76	%		1.82	%		1.71	%		1.74	%		1.90	%
Return on average equity		17.31			17.26			13.53			12.63			13.43
Return on average tangible equity		22.55			22.27			16.68			15.45			16.43
Net interest margin (tax equivalent)		3.32			3.28			3.22			3.29			3.41
Efficiency ratio		43.76			41.83			44.16			46.18			45.88


	Nine Months Ended
	Sept. 30,
INCOME STATEMENTS		2022			2021
Interest income	$	311,718		$	280,410
Interest expense		14,340			4,855
Net interest income		297,378			275,555
Provision for credit losses		13,353			(3,203)
Net interest income after provision for credit losses		284,025			278,758
Noninterest income		103,141			107,273
Noninterest expense		177,000			180,036
Net income before income taxes		210,166			205,995
Income tax expense		34,359			33,770
Net income	$	175,807		$	172,225

PER COMMON SHARE DATA
Net income - basic	$	1.23		$	1.21
Net income - diluted		1.23			1.20
Cash dividends declared		0.49			0.43
Book value		7.94			12.17
Tangible book value		5.73			9.94
Market value	$	41.83		$	45.95
Shares outstanding - end of period		142,628,163			142,467,687
Average outstanding shares - basic		142,588,373			142,242,783
Average outstanding shares - diluted		143,246,768			143,183,792

PERFORMANCE RATIOS
Return on average assets		1.77	%		1.94	%
Return on average equity		15.88			13.55
Return on average tangible equity		20.20			16.66
Net interest margin (tax equivalent)		3.27			3.43
Efficiency ratio		43.23			45.73

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

	Quarter Ended
		2022									2021
ALLOWANCE FOR LOAN LOSSES		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Balance at beginning of period	$	71,932		$	66,913		$	63,465		$	63,370		$	62,138
Loans charged-off		(293)			(275)			(659)			(3,067)			(1,475)
Loan recoveries		1,409			1,191			360			783			2,707
Net recoveries (charge-offs)		1,116			916			(299)			(2,284)			1,232
Provision for loan losses		1,060			4,103			3,747			2,379			-
Balance at end of period	$	74,108		$	71,932		$	66,913		$	63,465		$	63,370

ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	8,718		$	7,471		$	6,436		$	6,751		$	6,751
Provision for unfunded commitments		2,161			1,247			1,035			(315)			-
Balance at end of period	$	10,879		$	8,718		$	7,471		$	6,436		$	6,751

Allowance for loan losses /
period-end loans held-for-investment		1.18	%		1.22	%		1.20	%		1.18	%		1.20	%
Allowance for loan losses /
nonperforming loans		301.02			281.90			232.71			200.33			250.92
Net charge-offs (recoveries) / average total loans
(annualized)		(0.07)			(0.06)			0.02			0.17			(0.09)


	Quarter Ended
		2022									2021
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Commercial:
C&I	$	871,133		$	837,627		$	822,310		$	784,282		$	680,263
PPP		202			2,301			15,739			52,793			139,334
Municipal		214,852			200,577			191,799			177,905			165,847
Total Commercial		1,086,187			1,040,505			1,029,848			1,014,980			985,444
Agricultural		76,937			90,420			82,883			98,089			98,947
Real Estate:
Construction & Development		938,051			928,644			806,211			749,793			656,530
Farm		268,139			250,028			225,942			217,220			203,064
Non-Owner Occupied CRE		717,738			636,432			636,160			623,434			674,958
Owner Occupied CRE		945,665			909,899			881,181			821,653			824,231
Residential		1,536,180			1,412,125			1,352,162			1,334,419			1,328,798
Total Real Estate		4,405,773			4,137,128			3,901,656			3,746,519			3,687,581
Consumer:
Auto		538,798			468,147			419,818			405,416			394,072
Non-Auto		147,793			142,382			131,964			123,968			120,450
Total Consumer		686,591			610,529			551,782			529,384			514,522

Total loans held-for-investment	$	6,255,488		$	5,878,582		$	5,566,169		$	5,388,972		$	5,286,494

SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	43,149		$	46,512		$	47,445		$	55,670		$	53,620
Substandard		100,568			106,156			104,715			105,515			112,151
Doubtful		-			-			-			-			-
Total classified loans	$	143,717		$	152,668		$	152,160		$	161,185		$	165,771

NONPERFORMING ASSETS
Nonaccrual loans	$	24,585		$	25,475		$	28,723		$	31,652		$	25,210
Accruing troubled debt restructured loans		19			20			20			21			22
Accruing loans 90 days past due		15			22			11			8			23
Total nonperforming loans		24,619			25,517			28,754			31,681			25,255
Foreclosed assets		-			-			-			2,477			28
Total nonperforming assets	$	24,619		$	25,517		$	28,754		$	34,158		$	25,283

As a % of loans held-for-investment and foreclosed assets		0.39	%		0.43	%		0.52	%		0.63	%		0.48	%
As a % of end of period total assets		0.19			0.19			0.22			0.26			0.20


	Quarter Ended
		2022									2021
CAPITAL RATIOS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Common equity Tier 1 capital ratio		18.03	%		18.50	%		19.00	%		19.35	%		19.71	%
Tier 1 capital ratio		18.03			18.50			19.00			19.35			19.71
Total capital ratio		19.07			19.54			20.01			20.34			20.76
Tier 1 leverage ratio		10.79			10.65			10.78			11.13			11.19
Tangible common equity ratio		6.38			7.83			9.02			11.28			11.59
Equity/Assets ratio		8.64			10.02			11.18			13.43			13.82

	Quarter Ended
		2022									2021
NONINTEREST INCOME		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Trust fees	$	10,314		$	9,742		$	9,817		$	9,670		$	9,484
Service charges on deposits		6,399			6,038			5,706			5,762			5,673
Debit card fees		5,587			9,868			8,926			9,353			9,198
Credit card fees		651			700			602			602			595
Gain on sale and fees on mortgage loans		4,070			5,728			6,333			6,272			8,788
Net gain on sale of available-for-sale securities		334			1,648			31			1			1
Net gain on sale of foreclosed assets		349			18			1,084			107			27
Net gain (loss) on sale of assets		526			6			(10)			(3)			(6)
Interest on loan recoveries		664			1,649			283			1,207			1,746
Other noninterest income		2,049			1,920			2,109			1,932			2,220
Total noninterest income	$	30,943		$	37,317		$	34,881		$	34,903		$	37,726

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	33,129		$	31,840		$	32,540		$	31,876		$	34,460
Profit sharing expense		763			1,307			1,598			3,099			2,630
Net occupancy expense		3,440			3,292			3,225			3,333			3,288
Equipment expense		2,396			2,346			2,257			2,382			2,450
FDIC assessment fees		917			904			869			848			815
Debit card expense		3,013			3,200			2,964			3,221			2,929
Legal, tax and professional fees		2,604			2,513			2,957			2,835			2,893
Audit fees		451			450			451			423			466
Printing, stationery and supplies		600			501			540			664			432
Amortization of intangible assets		306			320			320			391			398
Advertising, meals and public relations		1,692			1,554			1,493			1,842			1,746
Operational and other losses		869			782			596			1,385			1,087
Software amortization and expense		2,564			2,522			2,457			2,817			2,855
Other noninterest expense		6,698			6,802			6,958			6,556			6,490
Total noninterest expense	$	59,442		$	58,333		$	59,225		$	61,672		$	62,939

TAX EQUIVALENT YIELD ADJUSTMENT	$	1,737		$	3,366		$	3,782		$	3,841		$	3,670


	Nine Months Ended
	Sept. 30,
NONINTEREST INCOME		2022			2021
Trust fees	$	29,873		$	26,475
Service charges on deposits		18,143			15,394
Debit card fees		24,381			26,552
Credit card fees		1,953			1,771
Gain on sale and fees on mortgage loans		16,131			26,973
Net gain on sale of available-for-sale securities		2,013			814
Net gain on sale of foreclosed assets		1,451			83
Net gain (loss) on sale of assets		522			213
Interest on loan recoveries		2,596			2,832
Other noninterest income		6,078			6,166
Total noninterest income	$	103,141		$	107,273

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	97,509		$	100,032
Profit sharing expense		3,668			7,035
Net occupancy expense		9,957			9,676
Equipment expense		6,999			6,791
FDIC assessment fees		2,690			2,282
Debit card expense		9,177			8,736
Legal, tax and professional fees		8,074			8,971
Audit fees		1,352			1,336
Printing, stationery and supplies		1,641			1,246
Amortization of intangible assets		946			1,222
Advertising, meals and public relations		4,739			4,526
Operational and other losses		2,247			1,908
Software amortization and expense		7,543			8,303
Other noninterest expense		20,458			17,972
Total noninterest expense	$	177,000		$	180,036

TAX EQUIVALENT YIELD ADJUSTMENT	$	8,884		$	10,850

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

	Three Months Ended						Three Months Ended
	Sept. 30, 2022						June 30, 2022
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	3,107	$	19	2.49	%	$	1,466	$	5	1.45	%
Interest-bearing demand deposits in nonaffiliated banks		248,929		1,413	2.25			288,784		547	0.76
Taxable securities		4,039,107		20,799	2.06			4,101,751		19,151	1.87
Tax-exempt securities		2,164,829		14,382	2.66			2,376,324		17,166	2.89
Loans		6,082,649		77,851	5.08			5,720,804		68,478	4.80
Total interest-earning assets		12,538,621	$	114,464	3.62	%		12,489,129	$	105,347	3.38	%
Noninterest-earning assets		833,980						825,711
Total assets	$	13,372,601					$	13,314,840
Interest-bearing liabilities:
Deposits	$	7,004,478	$	8,787	0.50	%	$	7,049,041	$	2,967	0.17	%
Borrowings		768,096		784	0.40			730,477		232	0.13
Total interest-bearing liabilities		7,772,574	$	9,571	0.49	%		7,779,518	$	3,199	0.16	%
Noninterest-bearing deposits		4,178,675						4,064,207
Other noninterest-bearing liabilities		61,320						65,475
Shareholders' equity		1,360,032						1,405,640
Total liabilities and shareholders' equity	$	13,372,601					$	13,314,840

Net interest income and margin (tax equivalent)			$	104,893	3.32	%			$	102,148	3.28	%

	Three Months Ended						Three Months Ended
	Mar. 31, 2022						Dec. 31, 2021
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	1,015	$	1	0.52	%	$	82	$	-	0.48	%
Interest-bearing demand deposits in nonaffiliated banks		171,970		94	0.22			320,102		124	0.15
Taxable securities		4,231,949		17,823	1.68			3,590,137		13,556	1.51
Tax-exempt securities		2,612,025		18,107	2.77			2,636,360		18,163	2.76
Loans		5,487,538		64,766	4.79			5,347,069		67,993	5.04
Total interest-earning assets		12,504,497	$	100,791	3.27	%		11,893,750	$	99,836	3.33	%
Noninterest-earning assets		744,810						726,932
Total assets	$	13,249,307					$	12,620,682
Interest-bearing liabilities:
Deposits	$	6,898,059	$	1,369	0.08	%	$	6,399,343	$	1,110	0.07	%
Borrowings		781,314		201	0.10			639,725		77	0.05
Total interest-bearing liabilities		7,679,373	$	1,570	0.08	%		7,039,068	$	1,187	0.07	%
Noninterest-bearing deposits		3,827,451						3,744,848
Other noninterest-bearing liabilities		64,999						99,091
Shareholders' equity		1,677,484						1,737,675
Total liabilities and shareholders' equity	$	13,249,307					$	12,620,682

Net interest income and margin (tax equivalent)			$	99,221	3.22	%			$	98,649	3.29	%

	Three Months Ended
	Sept. 30, 2021
		Average		Tax Equivalent	Yield /
		Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	1,554	$	2	0.51	%
Interest-bearing demand deposits in nonaffiliated banks		612,551		236	0.15
Taxable securities		3,081,215		12,122	1.57
Tax-exempt securities		2,542,606		17,701	2.78
Loans		5,337,807		70,807	5.26
Total interest-earning assets		11,575,733	$	100,868	3.46	%
Noninterest-earning assets		705,099
Total assets	$	12,280,832
Interest-bearing liabilities:
Deposits	$	6,346,267	$	1,340	0.08	%
Borrowings		599,934		76	0.05
Total interest-bearing liabilities		6,946,201	$	1,416	0.08	%
Noninterest-bearing deposits		3,490,685
Other noninterest-bearing liabilities		103,446
Shareholders' equity		1,740,500
Total liabilities and shareholders' equity	$	12,280,832

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

	Nine Months Ended						Nine Months Ended
	Sept. 30, 2022						Sept. 30, 2021
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	1,870	$	26	1.87	%	$	2,181	$	9	0.55	%
Interest-bearing demand deposits in nonaffiliated banks		236,843		2,054	1.16			682,082		606	0.12
Taxable securities		4,123,562		57,772	1.87			2,665,988		33,834	1.69
Tax-exempt securities		2,382,754		49,655	2.78			2,458,352		52,090	2.83
Loans		5,765,844		211,095	4.89			5,339,398		204,721	5.13
Total interest-earning assets		12,510,873	$	320,602	3.43	%		11,148,001	$	291,260	3.49	%
Noninterest-earning assets		801,828						699,326
Total assets	$	13,312,701					$	11,847,327
Interest-bearing liabilities:
Deposits	$	6,984,249	$	13,124	0.25	%	$	6,165,740	$	4,595	0.10	%
Borrowings		759,913		1,216	0.21			528,599		260	0.07
Total interest-bearing liabilities		7,744,162	$	14,340	0.25	%		6,694,339	$	4,855	0.10	%
Noninterest-bearing deposits		4,024,731						3,349,719
Other noninterest-bearing liabilities		63,919						103,354
Shareholders' equity		1,479,889						1,699,915
Total liabilities and shareholders' equity	$	13,312,701					$	11,847,327

Net interest income and margin (tax equivalent)			$	306,262	3.27	%			$	286,405	3.43	%

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SOURCE First Financial Bankshares, Inc.

FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2022 EARNINGS