{"id":516702,"date":"2021-07-22T16:09:30","date_gmt":"2021-07-22T20:09:30","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/first-financial-bankshares-announces-second-quarter-2021-earnings\/"},"modified":"2021-07-22T16:09:30","modified_gmt":"2021-07-22T20:09:30","slug":"first-financial-bankshares-announces-second-quarter-2021-earnings","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/first-financial-bankshares-announces-second-quarter-2021-earnings\/","title":{"rendered":"First Financial Bankshares Announces Second Quarter 2021 Earnings"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n ABILENE, Texas<\/span>, July 22, 2021<\/span> \/PRNewswire\/ —\u00a0First Financial Bankshares, Inc.<\/a> (NASDAQ: FFIN) today reported earnings for the second quarter of 2021 of $56.38 million<\/span> compared to earnings of $53.47 million<\/span> for \u00a0the same quarter a year ago. Basic and diluted earnings per share were $0.40<\/span> and $0.39<\/span>, respectively, for the second quarter of 2021 compared with $0.38<\/span> and $0.38<\/span> respectively, for the same quarter a year ago.<\/p>\n

“During the second quarter, we produced strong operating results as we moved beyond the pandemic.\u00a0 As the economy in Texas<\/span> continues to quickly recover from the pandemic, we were able to capitalize on the growth that we experienced over the past year. Our strong momentum produced net organic loan growth, excluding PPP loans, of $193.46 million<\/span> for the quarter and $296.84 million<\/span> year-to-date while customer deposits have grown $1.11 billion<\/span> year-to-date.\u00a0 We will continue to build relationships, serve our communities across Texas<\/span>, and remain focused on growth over the last half of 2021.\u00a0 We appreciate the continued support of our customers, shareholders and associates,” said F. Scott Dueser<\/span>, Chairman, President and CEO of First Financial Bankshares, Inc.\u00a0 <\/p>\n

Net interest income for the second quarter of 2021 was $90.95 million<\/span> compared to $89.24 million<\/span> for the second quarter of 2020. \u00a0Average-earning assets increased to $11.30 billion<\/span> for the second quarter of 2021 compared to $9.80 billion<\/span> a year ago.\u00a0 The net interest margin, on a taxable equivalent basis, was 3.36 percent for the second quarter of 2021 compared to 3.78 percent in the second quarter of 2020. \u00a0Our continued deposit growth produced higher levels of short-term liquidity and investment securities balances.<\/p>\n

Information related to the Company’s Paycheck Protection Program (“PPP”) loans are included in the following table (dollars in thousands):<\/p>\n

\u00a0<\/p>\n

\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n PPP Loans Originated<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n PPP Amounts as of June 30, 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Number of
Loans<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Amount<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Number<\/span>\n <\/p>\n

\n of Loans<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Period-End
Amount, Net<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Unamortized
Fees<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Recognized
Fees During the
Quarter Ended
June 30, 2021<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n PPP Round 1<\/span>\n <\/p>\n<\/td>\n

\n

\n 6,530<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ \u00a0703,450<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 724<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ \u00a0 72,595<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ \u00a0 1,107<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ \u00a0 \u00a03,912<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n PPP Round 2<\/span>\n <\/p>\n<\/td>\n

\n

\n 3,179<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 267,423<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2,997<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 247,797<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 12,615<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1,326<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n PPP Total<\/span>\n <\/p>\n<\/td>\n

\n

\n 9,709<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 970,873<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3,721<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 320,392<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 13,722<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ \u00a0 5,238<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

PPP loan balances accounted for $482.00 million<\/span> in average balances for the second quarter of 2021 compared to $499.35<\/span> in the first quarter of 2021. \u00a0Remaining unamortized fees continue to be amortized over the shorter of the repayment period or the contractual life of 24 to 60 months. <\/p>\n

The Company recorded a negative provision for credit losses of $1.21 million<\/span> for the second quarter of 2021 compared to a provision for credit losses of $8.70 million<\/span> for the second quarter of 2020. The Company’s provision for credit losses for the second quarter of 2021 reflected the continued improvement in the economic outlook for our markets across Texas<\/span> and overall improvements in asset quality.\u00a0 <\/p>\n

For the second quarter of 2021, net recoveries totaled $203 thousand<\/span> compared to net charge-offs of $193 thousand<\/span> for the second quarter of 2020. \u00a0At June 30, 2021<\/span>, the allowance for credit losses totaled $62.14 million<\/span>, or 1.17 percent of loans held-for-investment (“loans” hereafter), or 1.25 percent of loans, excluding PPP loans, compared to $68.95 million<\/span> at June 30, 2020<\/span>, or 1.31 percent of loans, or 1.52 percent of loans, excluding PPP loans. Additionally, the reserve for unfunded commitments totaled $6.75 million<\/span> at June 30, 2021<\/span> compared to $809 thousand<\/span> at June 30, 2020<\/span>. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.57 percent at June 30, 2021<\/span>, compared with 0.76 percent at June 30<\/span>, 2020.\u00a0 Classified loans totaled $174.99 million<\/span> at June 30, 2021<\/span>, compared to $200.90 million<\/span> at June 30<\/span>, 2020.\u00a0 <\/p>\n

Noninterest income in the second quarter of 2021 was $34.67 million<\/span> compared to $36.92 million<\/span> in the second quarter of 2020, as a result of the following: <\/p>\n