Abilene’s First Financial Bankshares Profits Rise in Q3


Abilene-based First Financial Bankshares Inc. reported third-quarter profit of $ 58.9 million on Thursday, compared to $ 52.9 million for the same quarter a year ago.

Basic and diluted earnings per share were 41 cents for the third quarter, compared to 37 cents for the same quarter in 2020.

Equity reached $ 1.73 billion as of September 30, up from $ 1.62 billion in 2020.

The bank has experienced “continued growth in its assets,” said Scott Dueser, president, president and chief executive officer, raising $ 2 billion more in assets compared to the same period last year.

As of September 30, the company’s consolidated assets were $ 12.54 billion, up from $ 10.57 billion in the same quarter a year ago.

“When you look at our entire business, we manage over $ 20 billion in assets for people,” Dueser said.

Growth in deposits

Customer deposits increased $ 111.42 million during the quarter, driven by 13,774 net deposit account openings year-to-date.

“We passed last year in nine months,” Dueser said of the growth of the account.

Historically, the bank has opened 5,000 new net accounts, he said. Last year it opened around 12,000.

This growth is due to a number of factors, he said, from social media campaigns to people looking for a new bank due to changes in their institutions, to new business from those who have asked. Paycheck Protection Plan loans through the bank.

Deposits totaled $ 9.9 billion as of September 30, up from $ 8.3 billion last year, driven by organic growth.

Loans, trust also see growth

First financial logo

Paycheck protection loans for businesses during COVID-19 were a “lifeline” for many, Dueser said, helping to preserve jobs and keep doors open.

PPP loan balances decreased $ 181 million from June 30 and represented $ 229.8 million in average balances for the third quarter, compared to $ 482 million in the second quarter.

Even though these are repaid, “we still have (had) good loan growth,” Dueser said.

Organic growth, including the continued recovery of the Texas economy from the pandemic, produced net loan growth of $ 162.95 million for the quarter, he said.

Loans totaled $ 5.29 billion as of September 30.

Excluding PPP loans, loans increased by $ 557.2 million, or about 12%, from comparable balances in 2020.

Loan recoveries during the third quarter totaled $ 1.75 million, compared to $ 202,000 in the third quarter of 2020.

Oil and gas prices helped push trust fees to $ 9.5 million in the third quarter, from $ 7.5 million in the third quarter of 2020, Dueser said.

The fair value of managed trust assets increased to $ 8.1 billion from nearly $ 7 billion a year ago.

Other places

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Mortgages had a “banner” year in 2020, Dueser said, and the numbers weren’t as “robust” this year.

But the numbers in this area were still “very good,” he said.

“We’re down $ 6 million in mortgage fees, but still very busy,” Dueser said.

Mortgage income was $ 8.8 million compared to $ 15.2 million in the third quarter.

Other data from the company’s report shows:

â–ºNet interest income for the third quarter was $ 95.8 million compared to $ 89.2 million for the third quarter of 2020.

â–ºNon-interest income for the third quarter was $ 37.7 million compared to $ 38.6 million.

â–ºMiddle-income assets increased to $ 11.6 billion in the third quarter from $ 9.8 billion a year ago.

â–ºThe net interest margin, in taxable equivalent, stood at 3.4% for the quarter, compared to 3.8% in 2020.

â–ºThe company recorded no provision for credit losses for the third quarter, compared to a provision for credit losses of $ 9 million in 2020.

â–ºFor the third quarter, net recoveries totaled $ 1.2 million compared to net write-offs of $ 409,000 in 2020.

â–ºNon-interest income for the third quarter was $ 37.7 million compared to $ 38.6 million last year.

â–ºNon-interest expense for the period totaled $ 62.9 million compared to $ 55.6 million. Salaries, commissions and benefits totaled $ 37.1 million, compared to $ 33.7 million in the third quarter of 2020.

Brian Bethel covers city and county government and general news for Abilene Reporter-News. If you enjoy local news, you can support local journalists with a digital subscription to ReporterNews.com.

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