First Financial Bankshares Announces Earnings For Third Quarter 2020

ABILENE, Texas, Oct. 22, 2020 /PRNewswire/ -- First Financial Bankshares, Inc. FFIN today reported earnings for the third quarter of 2020 of $52.86 million compared with earnings of $43.08 million for the third quarter of 2019, representing a 22.69 percent increase. Basic and diluted earnings per share were $0.37 for the third quarter of 2020 compared with $0.32 for the third quarter of 2019.

All amounts for the three and nine months ended September 30, 2020, include the results of the Company's acquisition of TB&T Bancshares, Inc. and its wholly-owned subsidiary, The Bank & Trust of Bryan/College Station, Texas, which was effective January 1, 2020.

"We are extremely pleased with our results for the third quarter and year-to-date reflecting our TEXAS STRONG initiative to navigate through the pandemic. Throughout this time, we have kept our doors open to allow our customers to keep their doors open as well. Our approach has proven to be very positive since approximately one-third of the PPP loans were made to prospects and noncustomers who couldn't get them done through their own bank allowing us to grow considerably in loans and deposits as well as trust assets. I am extremely proud of the dedication, hard work and excellent customer service that our 1,450 associates have provided through this time by guiding our customers through the PPP loan process, bringing an unbelievable amount of new business to the Company, and executing a record number of mortgages, all of which has certainly helped our bottom line. As already proven, we are well positioned to navigate through this environment with strong reserves, liquidity, superior capital levels, and a team that doesn't allow pandemics or hurricanes to slow us down. We are optimistic about finishing the year strong and rolling right into 2021," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc.

Net interest income for the third quarter of 2020 was $89.21 million, up $16.57 million from net interest income of $72.64 million for the third quarter of 2019. The net interest margin on a tax equivalent basis was 3.75 percent for the quarter compared to 3.94 percent a year ago. Net interest income was positively impacted by a $2.33 billion increase in average-earning assets to $9.80 billion at September 30, 2020, from both organic and acquired growth, partially offset by a 52 basis point decline in the yield on interest-earning assets to 3.84 percent for the quarter; and $1.85 million in accretion from acquired loans this quarter compared to $415 thousand in the same quarter last year. Partially offsetting these amounts was a $5.79 million, or 54 basis points, decrease in funding costs on interest-bearing liabilities from the same quarter a year ago.

During the third and second quarters of 2020, the Company recognized $2.83 million each quarter in deferred net loan fees on Paycheck Protection Program ('PPP") loans. PPP loans totaled $703.73 million at September 30, 2020 ($703.48 million and $430.84 million in average balances for the third quarter and year-to-date, respectively). The remainder of the PPP net deferred loan fees totaled $15.97 million at September 30, 2020 and continues to be amortized over the shorter of the repayment period or the contractual life of 24 months.

Accounting Standards Update (ASU) 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("CECL"), became effective for the Company on January 1, 2020. However, the pandemic-related legislation included an option for entities to delay the implementation of CECL until the earlier of the termination date of the national emergency declaration by the President, or December 31, 2020. The Company elected to delay implementation of CECL and has calculated and recorded the provision for credit losses for the quarter and year-to-date under the incurred loss model that existed prior to CECL. The Company is prepared to adopt CECL during the fourth quarter, retroactively effective as of January 1, 2020, which will likely require adjusting previously reported provisions for credit losses in the previous quarters of 2020.

The provision for credit losses was $9.00 million in the third quarter of 2020, including $1.50 million related to the provision for unfunded commitments, compared with $450 thousand in the third quarter of 2019. During the third quarter of 2020, net charge-offs totaled $409 thousand compared to $381 thousand in the third quarter of 2019. The Company's provision for credit losses in the third quarter of 2020 continues to reflect uncertainty surrounding the economic impact caused by the pandemic and the decline in oil and gas prices. At September 30, 2020, the allowance for loan losses totaled $76.04 million, or 1.44 percent of loans held-for-investment ("loans" hereafter), or 1.66 percent of loans excluding PPP loans, compared to $51.89 million at September 30, 2019, or 1.27 percent of loans. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.81 percent at September 30, 2020, compared with 0.66 percent at September 30, 2019. Classified loans totaled $202.04 million at September 30, 2020, compared to $119.20 million at September 30, 2019.

In mid-March of 2020, the Company began offering deferral and extensions of principle and/or interest payments to selected borrowers on a case-by-case basis. During the third quarter, we provided new or extended existing customers deferrals and extensions on a case-by-case basis considering the current and projected profile of the borrower. At September 30, 2020, the Company had approximately 122 loans totaling $18.65 million in outstanding loans subject to deferral and extension agreements, representing 0.41 percent of outstanding loans, excluding PPP loans compared to 2,200 loans totaling $468.54 million, or 10.30 percent of outstanding loans, excluding PPP loans, at June 30, 2020.

At September 30, 2020, loans with oil and gas industry exposure, excluding PPP loans, totaled $118.57 million, or 2.58 percent of outstanding loans, excluding PPP loans. These loans comprised $26.82 million of classified loans including $6.80 million in nonaccrual loans. At September 30, 2020, the Company's allowance for loan loss specific reserves on its oil and gas loan portfolio totaled 8.01 percent of total oil and gas loans, excluding PPP loans, and had net charge-offs totaling $801 thousand for the nine months ended September 30, 2020, respectively. There were no charge-offs associated with oil and gas loans during the third quarter of 2020.

In addition, at September 30, 2020, loans in the retail/restaurant/hospitality industries, excluding PPP loans, totaled $359.02 million or 7.82 percent of the Company's outstanding loans, excluding PPP loans. These loans comprised $28.17 million of classified loans including $5.69 million in nonaccrual loans. Net charge-offs related to this portfolio totaled $26 thousand and $334 thousand for the three and nine months ended September 30, 2020, respectively.

Noninterest income in the third quarter of 2020 rose to $38.58 million from $28.67 million for the third quarter of 2019, as a result of the following:

Trust fees increased to $7.46 million in the third quarter of 2020 from $7.05 million in the third quarter of 2019. The fair value of trust assets managed increased to $6.95 billion, up 9.36 percent at September 30, 2020 from $6.36 billion at September 30, 2019.
Service charges on deposits were $5.01 million in the third quarter of 2020 compared with $5.63 million in the third quarter of 2019. The decline in service charge revenue in 2020 when compared to 2019 has primarily been driven by lower overdraft fees in the current year related to the effects of the pandemic and related stimulus programs, although service charge income increased $691 thousand in the third quarter over the second quarter of 2020.
ATM, interchange and credit card fees increased to $8.64 million in the third quarter of 2020 from $7.73 million in the third quarter of 2019, driven by continued growth in the number of debit cards issued as well as our Bryan/College Station acquisition.
Mortgage income increased to $15.23 million compared with $5.73 million in the third quarter of 2019 due to a significant increase in the volume of loans originated driven by the lower rate environment and the strong housing market in Texas. The Company's mortgage pipeline increased to $235.63 million as of September 30, 2020, when compared to $62.79 million at September 30, 2019.

Noninterest expense for the third quarter of 2020 totaled $55.59 million compared to $48.91 million in the third quarter of 2019, as a result of the following:

Salary, commissions and employee benefit costs totaled $33.65 million for the third quarter of 2020, compared to $28.55 million in the third quarter of 2019. The increase over the prior year was primarily driven by the Bryan/College Station acquisition, annual merit-based pay increases and higher mortgage related commissions and incentives. The $2.84 million increase in the third quarter of 2020 when compared to the second quarter of 2020 primarily resulted from the $3.62 million one-time deferral of salaries related to PPP loans in the second quarter of 2020 and a $1.30 million increase in mortgage related commissions and incentives partially offset by a decrease in other employee costs.
Noninterest expense in the second quarter of 2020 included conversion related costs totaling $583 thousand as a result of the Bryan/College Station acquisition, while no significant conversion related costs were incurred in the third quarters of 2020 and 2019.

The Company's efficiency ratio in the third quarter of 2020 was 42.45 percent compared with 47.54 percent in the third quarter of 2019.

As of September 30, 2020, consolidated assets for the Company totaled $10.57 billion compared to $8.11 billion at September 30, 2019. Loans totaled $5.29 billion at September 30, 2020, compared with loans of $4.10 billion at September 30, 2019, representing approximately 29 percent growth driven by the Bryan/College Station acquisition, PPP loans and organic growth. Deposits totaled $8.29 billion at September 30, 2020, compared to $6.40 billion at September 30, 2019, representing approximately 30 percent growth driven by organic growth and the acquisition. Noninterest-bearing deposits increased to 35.6 percent of total deposits at September 30, 2020 compared to 34.6 percent at September 30, 2019.

Shareholders' equity rose to $1.62 billion as of September 30, 2020, compared to $1.21 billion at September 30, 2019, primarily from the Bryan/College Station acquisition, undistributed earnings and the net increase in the net unrealized gain on investment securities. At September 30, 2020, the Company's capital ratios significantly exceeded all well-capitalized requirements.

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
		2020									2019
ASSETS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Cash and due from banks	$	175,088		$	188,373		$	191,486		$	231,534		$	198,855
Interest-bearing deposits in banks		58,933			196,426			76,378			47,920			31,410
Federal funds sold		-			-			-			3,150			-
Investment securities		4,431,280			4,118,863			4,107,069			3,413,317			3,397,156
Loans, held-for-investment		5,293,679			5,253,067			4,639,389			4,194,969			4,100,316
Allowance for loan losses		(76,038)			(68,947)			(60,440)			(52,499)			(51,889)
Net loans, held-for-investment		5,217,641			5,184,120			4,578,949			4,142,470			4,048,427
Loans, held-for-sale		101,055			66,370			42,034			28,228			40,499
Premises and equipment, net		141,002			138,933			139,554			131,022			132,367
Goodwill		313,481			313,481			312,842			171,565			171,565
Other intangible assets		5,394			5,884			6,392			2,102			2,340
Other assets		123,778			127,367			246,387			90,919			91,220
Total assets	$	10,567,652		$	10,339,817		$	9,701,091		$	8,262,227		$	8,113,839

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	2,950,407		$	2,941,679		$	2,288,597		$	2,065,128		$	2,210,997
Interest-bearing deposits		5,344,481			5,215,963			4,921,869			4,538,678			4,186,686
Total deposits		8,294,888			8,157,642			7,210,466			6,603,806			6,397,683
Borrowings		503,163			449,224			857,871			381,356			400,155
Other liabilities		150,100			150,502			106,392			49,868			110,903
Shareholders' equity		1,619,501			1,582,449			1,526,362			1,227,197			1,205,098
Total liabilities and shareholders' equity	$	10,567,652		$	10,339,817		$	9,701,091		$	8,262,227		$	8,113,839

	Quarter Ended
		2020									2019
INCOME STATEMENTS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Interest income	$	91,373		$	92,197		$	88,100		$	82,123		$	80,591
Interest expense		2,163			2,962			7,198			6,801			7,953
Net interest income		89,210			89,235			80,902			75,322			72,638
Provision for loan losses		7,500			8,700			9,850			950			450
Provision for unfunded commitments		1,500			-			-			-			-
Net interest income after provisions for credit losses		80,210			80,535			71,052			74,372			72,188
Noninterest income		38,575			36,919			28,732			27,347			28,669
Noninterest expense		55,593			53,321			55,318			51,938			48,910
Net income before income taxes		63,192			64,133			44,466			49,781			51,947
Income tax expense		10,335			10,663			7,234			8,393			8,867
Net income	$	52,857		$	53,470		$	37,232		$	41,388		$	43,080

PER COMMON SHARE DATA
Net income - basic	$	0.37		$	0.38		$	0.26		$	0.30		$	0.32
Net income - diluted		0.37			0.38			0.26			0.30			0.32
Cash dividends declared		0.13			0.13			0.12			0.12			0.12
Book value		11.40			11.14			10.73			9.03			8.87
Tangible book value		9.15			8.89			8.48			7.75			7.59
Market value	$	27.91		$	28.89		$	26.84		$	35.10		$	33.33
Shares outstanding - end of period		142,121,595			142,035,396			142,314,930			135,891,755			135,822,456
Average outstanding shares - basic		141,980,707			141,973,522			142,118,864			135,747,381			135,693,901
Average outstanding shares - diluted		142,529,242			142,454,083			142,735,208			136,539,286			136,369,328

PERFORMANCE RATIOS
Return on average assets		2.01	%		2.06	%		1.63	%		2.01	%		2.15	%
Return on average equity		13.14			14.00			10.11			13.56			14.46
Return on average tangible equity		16.41			17.67			12.89			15.83			16.96
Net interest margin (tax equivalent)		3.75			3.78			3.91			3.99			3.94
Efficiency ratio		42.45			41.32			49.63			49.75			47.54


	Nine Months Ended
	Sept. 30,
INCOME STATEMENTS		2020			2019
Interest income	$	271,671		$	237,069
Interest expense		12,323			23,301
Net interest income		259,348			213,768
Provision for loan losses		26,050			2,015
Provision for unfunded commitments		1,500			-
Net interest income after provisions for credit losses		231,798			211,753
Noninterest income		104,226			81,081
Noninterest expense		164,233			144,583
Net income before income taxes		171,791			148,251
Income tax expense		28,233			24,827
Net income	$	143,558		$	123,424

PER COMMON SHARE DATA
Net income - basic	$	1.01		$	0.91
Net income - diluted		1.01			0.91
Cash dividends declared		0.38			0.35
Book value		11.40			8.87
Tangible book value		9.15			7.59
Market value	$	27.91		$	33.33
Shares outstanding - end of period		142,121,595			135,822,456
Average outstanding shares - basic		142,023,930			135,613,646
Average outstanding shares - diluted		142,519,448			136,274,342

PERFORMANCE RATIOS
Return on average assets		1.91	%		2.10	%
Return on average equity		12.46			14.67
Return on average tangible equity		15.71			17.36
Net interest margin (tax equivalent)		3.81			3.97
Efficiency ratio		44.21			48.21

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

	Quarter Ended
		2020									2019
ALLOWANCE FOR LOAN LOSSES		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Balance at beginning of period	$	68,947		$	60,440		$	52,499		$	51,889		$	51,820
Loans charged off		(853)			(894)			(2,227)			(834)			(767)
Loan recoveries		444			701			318			494			386
Net recoveries (charge-offs)		(409)			(193)			(1,909)			(340)			(381)
Provision for loan losses		7,500			8,700			9,850			950			450
Balance at end of period	$	76,038		$	68,947		$	60,440		$	52,499		$	51,889

Allowance for loan losses / period-end loans held-for-investment		1.44	%		1.31	%		1.30	%		1.25	%		1.27	%
Allowance for loan losses / nonperforming loans		177.99			174.83			153.16			212.02			200.75
Net charge-offs / average total loans (annualized)		0.03			0.01			0.16			0.03			0.04

SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	66,033		$	63,489		$	87,099		$	63,371		$	46,300
Substandard		136,010			137,408			103,249			77,284			72,904
Doubtful		-			-			-			-			-
Total classified loans	$	202,043		$	200,897		$	190,348		$	140,655		$	119,204

NONPERFORMING ASSETS
Nonaccrual loans	$	42,673		$	39,320		$	39,226		$	24,582		$	25,717
Accruing troubled debt restructured loans		25			25			26			26			27
Accruing loans 90 days past due		23			92			209			153			104
Total nonperforming loans		42,721			39,437			39,461			24,761			25,848
Foreclosed assets		331			287			983			1,009			1,364
Total nonperforming assets	$	43,052		$	39,724		$	40,444		$	25,770		$	27,212

As a % of loans held-for-investment and foreclosed assets		0.81	%		0.76	%		0.87	%		0.61	%		0.66	%
As a % of end of period total assets		0.41			0.38			0.42			0.31			0.34

OIL AND GAS PORTFOLIO INFORMATION *
Oil and gas loans	$	118,567		$	128,143		$	117,223		$	119,789		$	122,908
Oil and gas loans as a % of total loans held-for-investment		2.58	%		2.82	%		2.53	%		2.86	%		3.00	%
Classified oil and gas loans		26,823			28,366			22,032			7,041			7,953
Nonaccrual oil and gas loans		6,800			3,702			3,477			481			519
Net charge-offs for oil and gas loans		-			195			606			-			-
Allowance for oil and gas loans as a % of oil and gas loans		8.01	%		4.17	%		4.46	%		2.54	%		2.87	%
* Excluding PPP loans

RETAIL/RESTAURANT/HOSPITALITY PORTFOLIO INFORMATION *
Retail loans	$	229,386		$	216,244		$	217,380
Restaurant loans		39,523			46,418			25,570
Hotel loans		63,273			51,957			46,690
Other hospitality loans		26,041			23,230			8,470
Travel loans		801			908			937
Total Retail/Restaurant/Hospitality loans	$	359,024		$	338,757		$	299,047

Retail/Restaurant/Hospitality loans as a % of total loans held-for-investment		7.82	%		7.45	%		6.45	%
Classified Retail/Restaurant/Hospitality loans	$	28,171		$	15,837		$	5,680
Nonaccrual Retail/Restaurant/Hospitality loans		5,689			5,752			867
Net Charge-offs for Retail/Restaurant/Hospitality loans		26			178			130
* Excluding PPP loans

CAPITAL RATIOS
Common equity Tier 1 capital ratio		20.56	%		20.78	%		19.55	%		20.06	%		20.05	%
Tier 1 capital ratio		20.56			20.78			19.55			20.06			20.05
Total capital ratio		21.82			22.03			20.65			21.13			21.14
Tier 1 leverage ratio		11.65			11.25			12.49			12.60			12.58
Tangible common equity ratio		12.61			12.00			13.09			12.43			12.94
Equity/Assets ratio		15.33			15.30			15.73			14.85			14.85


	Quarter Ended
		2020									2019
NONINTEREST INCOME		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Trust fees	$	7,461		$	6,961		$	7,437		$	7,344		$	7,051
Service charges on deposits		5,009			4,318			5,915			5,861			5,629
ATM, interchange and credit card fees		8,644			8,049			7,400			7,943			7,728
Gain on sale and fees on mortgage loans		15,228			13,676			3,852			4,216			5,733
Net gain on sale of available-for-sale securities		36			1,512			2,062			5			52
Net gain (loss) on sale of foreclosed assets		19			52			1			81			71
Net gain (loss) on sale of assets		(2)			(24)			116			78			235
Interest on loan recoveries		202			154			265			277			575
Other noninterest income		1,978			2,221			1,684			1,542			1,595
Total noninterest income	$	38,575		$	36,919		$	28,732		$	27,347		$	28,669

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	32,104		$	28,836		$	28,670		$	27,175		$	27,030
Cost related to termination of pension plan		-			-			-			1,700			-
Profit sharing expense		1,545			1,978			972			2,766			1,520
Net occupancy expense		3,193			3,101			3,027			2,784			2,830
Equipment expense		2,157			2,010			2,075			2,043			2,225
FDIC insurance premiums		587			463			45			-			15
ATM, interchange and credit card expenses		2,829			2,610			2,985			2,419			2,627
Legal, tax and professional fees		2,615			2,931			2,921			2,353			2,274
Audit fees		526			739			411			233			341
Printing, stationery and supplies		615			533			566			465			480
Amortization of intangible assets		490			508			509			238			246
Advertising and public relations		797			1,011			1,195			1,791			1,745
Operational and other losses		621			728			576			626			507
Software amortization and expense		2,265			2,010			2,024			2,158			1,767
Other noninterest expense		5,249			5,863			9,342			5,187			5,303
Total noninterest expense	$	55,593		$	53,321		$	55,318		$	51,938		$	48,910

TAX EQUIVALENT YIELD ADJUSTMENT	$	3,170		$	2,902		$	1,834		$	1,732		$	1,575


	Nine Months Ended
	Sept. 30,
NONINTEREST INCOME		2020			2019
Trust fees	$	21,859		$	21,057
Service charges on deposits		15,242			16,179
ATM, interchange and credit card fees		24,093			21,920
Gain on sale and fees on mortgage loans		32,756			13,928
Net gain (loss) on sale of available-for-sale securities		3,610			728
Net gain (loss) on sale of foreclosed assets		72			193
Net gain (loss) on sale of assets		90			241
Interest on loan recoveries		621			1,815
Other noninterest income		5,883			5,020
Total noninterest income	$	104,226		$	81,081

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	89,610		$	77,573
Cost related to termination of pension plan		-			900
Profit sharing expense		4,495			4,895
Net occupancy expense		9,321			8,372
Equipment expense		6,242			7,009
FDIC insurance premiums		1,095			1,091
ATM, interchange and credit card expenses		8,424			7,437
Legal, tax and professional fees		8,467			6,729
Audit fees		1,676			1,212
Printing, stationery and supplies		1,714			1,348
Amortization of intangible assets		1,507			778
Advertising and public relations		3,003			5,022
Operational and other losses		1,925			1,253
Software amortization and expense		6,299			5,147
Other noninterest expense		20,455			15,817
Total noninterest expense	$	164,233		$	144,583

TAX EQUIVALENT YIELD ADJUSTMENT	$	7,905		$	5,058

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

	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						Three Months Ended
	Mar. 31 2020						Dec. 31, 2019
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	2,712	$	10	1.50	%	$	1,198	$	6	2.03	%
Interest-bearing deposits in nonaffiliated banks		220,906		745	1.36			54,841		218	1.58
Taxable securities		2,263,329		14,655	2.59			2,185,777		14,165	2.59
Tax exempt securities		1,346,842		11,200	3.33			1,243,487		10,695	3.44
Loans		4,667,436		63,323	5.46			4,185,716		58,771	5.57
Total interest-earning assets		8,501,225	$	89,933	4.25	%		7,671,019	$	83,855	4.34	%
Noninterest-earning assets		692,432						500,924
Total assets	$	9,193,657					$	8,171,943

Interest-bearing liabilities:
Deposits	$	4,904,087	$	6,680	0.55	%	$	4,336,063	$	6,052	0.55	%
Borrowings		460,605		517	0.45			417,316		749	0.71
Total interest-bearing liabilities		5,364,692	$	7,197	0.54	%		4,753,379	$	6,801	0.57	%
Noninterest-bearing liabilities		2,348,485						2,207,508
Shareholders' equity		1,480,480						1,211,056
Total liabilities and shareholders' equity	$	9,193,657					$	8,171,943

Net interest income and margin (tax equivalent)			$	82,736	3.91	%			$	77,054	3.99	%

	Three Months Ended
	Sept. 30, 2019
		Average		Tax Equivalent	Yield /
		Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	3,006	$	19	2.52	%
Interest-bearing deposits in nonaffiliated banks		61,465		363	2.34
Taxable securities		2,183,930		14,292	2.62
Tax exempt securities		1,132,279		10,075	3.56
Loans		4,094,235		57,417	5.56
Total interest-earning assets		7,474,915	$	82,166	4.36	%
Noninterest-earning assets		489,446
Total assets	$	7,964,361

Interest-bearing liabilities:
Deposits	$	4,156,850	$	7,123	0.68	%
Borrowings		388,235		830	0.85
Total interest-bearing liabilities		4,545,085	$	7,953	0.69	%
Noninterest-bearing liabilities		2,237,462
Shareholders' equity		1,181,814
Total liabilities and shareholders' equity	$	7,964,361

Net interest income and margin (tax equivalent)			$	74,213	3.94	%


	Nine Months Ended						Nine Months Ended
	Sept. 30, 2020						Sept. 30, 2019
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	1,854	$	14	0.99	%	$	4,438	$	92	2.76	%
Interest-bearing deposits in nonaffiliated banks		267,850		889	0.44			89,559		1,575	2.35
Taxable securities		2,283,064		40,748	2.38			2,058,380		41,505	2.69
Tax exempt securities		1,736,250		41,670	3.20			1,175,863		31,968	3.62
Loans		5,084,136		196,255	5.16			4,037,243		166,987	5.53
Total interest-earning assets		9,373,154	$	279,576	3.98	%		7,365,483	$	242,127	4.40	%
Noninterest-earning assets		673,325						495,179
Total assets	$	10,046,479					$	7,860,662

Interest-bearing liabilities:
Deposits	$	5,104,096	$	11,293	0.30	%	$	4,165,735	$	21,071	0.68	%
Borrowings		606,291		1,030	0.23			391,680		2,230	0.76
Total interest-bearing liabilities		5,710,387	$	12,323	0.29	%		4,557,415	$	23,301	0.68	%
Noninterest-bearing liabilities		2,796,843						2,178,412
Shareholders' equity		1,539,249						1,124,835
Total liabilities and shareholders' equity	$	10,046,479					$	7,860,662

Net interest income and margin (tax equivalent)			$	267,253	3.81	%			$	218,826	3.97	%

View original content:http://www.prnewswire.com/news-releases/first-financial-bankshares-announces-earnings-for-third-quarter-2020-301158342.html

SOURCE First Financial Bankshares, Inc.

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