FIRST FINANCIAL BANKSHARES INC [FFIN] Filings

10-Q 1 ffin-20220630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-07674

First Financial Bankshares, Inc.

(Exact name of registrant as specified in its charter)



Texas		75-0944023
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

400 Pine Street, Abilene, Texas		79601
(Address of principal executive offices)		(Zip Code)

(325) 627-7155

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FFIN	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2of the Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:



Class		Outstanding at August 2, 2022
Common Stock, $0.01 par value per share		142,542,554

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION


Item		Page
1.	Financial Statements	3
	Consolidated Balance Sheets – Unaudited	4
	Consolidated Statements of Earnings – Unaudited	5
	Consolidated Statements of Comprehensive Earnings (Loss) – Unaudited	6
	Consolidated Statements of Shareholders’ Equity – Unaudited	7
	Consolidated Statements of Cash Flows – Unaudited	9
	Notes to Consolidated Financial Statements – Unaudited	10

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41

3.	Quantitative and Qualitative Disclosures About Market Risk	56

4.	Controls and Procedures	57

PART II - OTHER INFORMATION

1.	Legal Proceedings	58

1A.	Risk Factors	58

2.	Unregistered Sales of Equity Securities and Use of Proceeds	58

3.	Defaults Upon Senior Securities	58

4.	Mine Safety Disclosures	58

5.	Other Information	58

6.	Exhibits	59

	Signatures	60

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

The consolidated balance sheets of First Financial Bankshares, Inc. and Subsidiaries (the “Company” or “we”) at June 30, 2022 and 2021, (unaudited) and December 31, 2021, and the consolidated statements of earnings, comprehensive earnings and shareholders’ equity for the three and six-months ended June 30, 2022 and 2021 (unaudited), and the consolidated statements of cash flows for the six-months ended June 30, 2022 and 2021 (unaudited) and notes to consolidated financial statements (unaudited), follow on pages 4 through 40.

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)


	June 30,						December 31,
	2022			2021			2021
	(Unaudited)
ASSETS
CASH AND DUE FROM BANKS	$	242,665		$	190,061		$	205,053
INTEREST-BEARING DEMAND DEPOSITS IN BANKS		222,899			654,531			323,535
Total cash and cash equivalents		465,564			844,592			528,588
SECURITIES AVAILABLE-FOR-SALE, at fair value (amortized cost of these securities was $6,722,336, $5,405,189 and $6,447,510 as of June 30, 2022 and 2021, and December 31, 2021, respectively)		6,215,036			5,578,048			6,573,179
LOANS:
Held-for-investment, excluding PPP loans		5,876,281			4,984,210			5,336,179
PPP loans		2,301			320,392			52,793
Total loans held-for-investment		5,878,582			5,304,602			5,388,972
Less—allowance for credit losses		(71,932	)		(62,138	)		(63,465	)
Net loans held-for-investment		5,806,650			5,242,464			5,325,507
Held-for-sale ($23,848, $56,257 and $34,122 at fair value at June 30, 2022 and 2021, and December 31, 2021, respectively)		26,445			61,802			37,810
BANK PREMISES AND EQUIPMENT, net		149,280			147,655			149,764
INTANGIBLE ASSETS, net		316,139			317,568			316,779
OTHER ASSETS		281,098			136,954			170,834
Total assets	$	13,260,212		$	12,329,083		$	13,102,461
LIABILITIES AND SHAREHOLDERS’ EQUITY
NONINTEREST-BEARING DEPOSITS	$	4,104,034		$	3,427,038		$	3,780,230
INTEREST-BEARING DEPOSITS		7,018,949			6,354,656			6,786,258
Total deposits		11,122,983			9,781,694			10,566,488
BORROWINGS		768,364			549,969			671,152
TRADE DATE PAYABLE		—			189,838			—
OTHER LIABILITIES		39,847			87,213			105,597
Total liabilities		11,931,194			10,608,714			11,343,237
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
COMMON STOCK — ($0.01 par value, authorized 200,000,000 shares; 142,586,601, 142,359,774 and 142,532,116 shares issued at June 30, 2022 and 2021, and December 31, 2021, respectively)		1,426			1,424			1,425
CAPITAL SURPLUS		675,653			672,288			676,871
RETAINED EARNINGS		1,052,453			910,171			981,675
TREASURY STOCK (shares at cost: 937,924, 938,629 and 936,897 at June 30, 2022 and 2021, and December 31, 2021, respectively)		(10,656	)		(9,641	)		(10,090	)
DEFERRED COMPENSATION		10,656			9,641			10,090
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSS), net		(400,514	)		136,486			99,253
Total shareholders’ equity		1,329,018			1,720,369			1,759,224
Total liabilities and shareholders’ equity	$	13,260,212		$	12,329,083		$	13,102,461

See notes to consolidated financial statements.

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS—(UNAUDITED)

(Dollars in thousands, except per share amounts)


	Three-Months Ended June 30,					Six-Months Ended June 30,
	2022		2021			2022		2021
INTEREST INCOME:
Interest and fees on loans	$	68,158	$	66,879		$	132,656	$	133,314
Interest on investment securities:
Taxable		19,151		11,449			36,974		21,712
Exempt from federal income tax		14,120		14,060			28,712		27,809
Interest on federal funds sold and interest-bearing demand deposits in banks		552		214			648		377
Total interest income		101,981		92,602			198,990		183,212
INTEREST EXPENSE:
Interest on deposits		2,966		1,560			4,336		3,255
Other		233		93			433		184
Total interest expense		3,199		1,653			4,769		3,439
Net interest income		98,782		90,949			194,221		179,773
PROVISION FOR CREDIT LOSSES		5,350		(1,206	)		10,132		(3,203	)
Net interest income after provision for credit losses		93,432		92,155			184,089		182,976
NONINTEREST INCOME:
Trust fees		9,742		8,692			19,559		16,991
Service charges on deposit accounts		6,038		4,928			11,744		9,721
ATM, interchange and credit card fees

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10-Q	[2021-05-05]
10-K	[2021-02-22]
10-Q	[2020-11-04]
10-Q	[2020-07-28]
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10-K	[2020-02-14]
10-Q	[2019-10-29]
10-Q	[2019-07-30]
10-Q	[2019-04-30]
10-K	[2019-02-19]
10-Q	[2018-10-30]
10-Q	[2018-07-31]
10-Q	[2018-05-02]
10-K	[2018-02-16]
10-Q	[2017-10-31]
10-Q	[2017-07-28]
10-Q	[2017-05-02]
10-K	[2017-02-17]
10-Q	[2016-10-25]
10-Q	[2016-07-28]
10-Q	[2016-05-04]
10-K	[2016-02-19]
10-Q	[2015-10-28]
10-Q	[2015-08-04]
10-Q	[2015-05-04]
10-K	[2015-02-20]
10-Q	[2014-11-04]
10-Q	[2014-07-31]
10-Q	[2014-04-29]
10-K	[2014-02-21]
10-Q	[2013-10-29]
10-Q	[2013-07-30]
10-Q	[2013-04-26]
10-K	[2013-02-22]
10-Q	[2012-10-31]
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