First Financial Bankshares, Inc. FFIN

NAS: FFIN | ISIN: US32020R1095   16/07/2024
34,16 USD (+6,19%)
(+6,19%)   16/07/2024

First Financial Bankshares Announces First Quarter 2024 Earnings

ABILENE, Texas, April 18, 2024 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings for the first quarter of 2024 of $53.40 million compared to earnings of $52.57 million for the same quarter a year ago. Basic and diluted earnings per share were $0.37 for both quarters ended March 31, 2024 and 2023, respectively.

As further described below, the results this quarter compared to the same quarter a year ago included (i) an increase in net interest income of $3.96 million, (ii) a decrease in provision for credit losses of $1.97 million, and (iii) an increase in trust fees of $1.53 million. Offsetting these items was an increase in salary and employee benefits expenses of $5.22 million when compared to the same period a year ago.

"Our results were highlighted by an increase in net interest income which was achieved through organic loan and deposit growth during the quarter," said F. Scott Dueser, our Chairman, President and CEO. "We are also pleased that, as our bond portfolio continues to mature, we have been able to use that cash flow to fund our organic loan growth, bolster our liquidity position and begin to repurchase securities at much higher rates. We remain financially safe, sound and secure which is reflected in our strong regulatory capital ratios, diversified deposit base and access to multiple liquidity sources. We appreciate the continued support of our customers, shareholders and associates," added Mr. Dueser.

Net interest income for the first quarter of 2024 was $100.24 million compared to $97.51 million for the fourth quarter of 2023 and $96.29 million for the first quarter of 2023. The net interest margin, on a taxable equivalent basis, was 3.34 percent in the first quarter of 2024 compared to 3.33 percent in the fourth quarter of 2023 and 3.34 percent in the first quarter of 2023. Average interest-earning assets were $12.37 billion for the first quarter of 2024 compared to $12.07 billion for the same quarter a year ago. 

The Company recorded a provision for credit losses of $808 thousand for the first quarter of 2024 compared to a provision for credit losses of $2.78 million for the first quarter of 2023. At March 31, 2024, the allowance for credit losses totaled $89.56 million, or 1.24 percent of loans held-for-investment ("loans" hereafter), compared to $80.82 million, or 1.23 percent of loans, at March 31, 2023. Additionally, the reserve for unfunded commitments totaled $7.46 million at March 31, 2024 compared to $10.40 million at March 31, 2023.

Net charge-offs totaled $428 thousand for the first quarter of 2024 compared to net recoveries of $277 thousand for the first quarter of 2023. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.51 percent at March 31, 2024, compared with 0.37 percent at March 31, 2023.  Classified loans totaled $201.59 million at March 31, 2024, compared to $157.06 million at March 31, 2023.

Noninterest income for the first quarter of 2024 was $29.38 million compared to $28.01 million for the first quarter of 2023, due to the following:

  • Trust fees increased to $11.38 million for the first quarter of 2024 compared to $9.85 million for the first quarter of 2023, driven by the increase in market value of trust assets managed to $10.15 billion at March 31, 2024, compared to $9.10 billion at March 31, 2023.
  • Service charges on deposits increased to $6.25 million for the first quarter of 2024 compared with $6.04 million for the first quarter of 2023, driven by the growth of over 2,000 net new accounts opened during the first quarter of 2024.
  • Mortgage income increased to $3.13 million for the first quarter of 2024 compared to $2.97 million for the first quarter of 2023 due to a slight increase in mortgage loans originated.
  • There were no gains on sales of assets, foreclosed assets and securities during the first quarter of 2024 compared to a gain of $976 thousand for the first quarter of 2023.

Noninterest expense for the first quarter of 2024 totaled $63.94 million compared to $57.26 million for the first quarter of 2023, as a result of the following:

  • Salary, commissions, and employee benefit costs increased to $36.68 million for the first quarter of 2024, compared to $31.46 million in the first quarter of 2023 primarily resulting from merit-based and market driven pay increases, an increase of $1.65 million in profit sharing accruals, an increase of $1.29 million in medical insurance expense and an increase of $1.18 million in officer incentive accruals.
  • Noninterest expenses, excluding salary related costs, increased $1.46 million for the first quarter of 2024 compared to the same period in 2023 largely due to increases in software amortization and FDIC insurance fees. An additional $440 thousand was accrued in the first quarter of 2024 for the FDIC special assessment over the Company's regular accrual.

The Company's efficiency ratio was 48.37 percent for the first quarter of 2024 compared to 44.93 percent for the first quarter of 2023. 

As of March 31, 2024, consolidated total assets were $13.19 billion compared to $13.01 billion at March 31, 2023. Loans totaled $7.23 billion at March 31, 2024, compared with loans of $6.58 billion at March 31, 2023. During the first quarter of 2024, loans grew $80.62 million, or 4.51 percent annualized, when compared to December 31, 2023 balances. Deposits totaled $11.29 billion at March 31, 2024, compared to $10.94 billion at March 31, 2023.  

Shareholders' equity was $1.49 billion as of March 31, 2024, compared to $1.50 billion and $1.37 billion at December 31, 2023, and March 31, 2023, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $441.23 million at March 31, 2024, compared to an unrealized loss of $403.30 million and $458.25 million at December 31, 2023 and March 31, 2023, respectively.

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 79 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, Franklin, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Kingwood, Lumberton, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Spring, 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 nine 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," "project," 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, 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



2024



2023


ASSETS


 Mar. 31,



 Dec. 31,



 Sept. 30,



June 30,



 Mar. 31,


Cash and due from banks

$

222,464


$

281,354


$

208,277


$

255,018


$

224,875


Interest-bearing demand deposits in banks


365,397



255,237



180,008



23,839



221,336


Federal funds sold


12,300



-



-



-



-


Investment securities


4,658,526



4,732,762



4,652,537



5,066,262



5,298,557


Loans, held-for-investment


7,229,410



7,148,791



6,994,696



6,777,570



6,576,215


Allowance for credit losses


(89,562)



(88,734)



(89,714)



(86,541)



(80,818)


Net loans, held-for-investment


7,139,848



7,060,057



6,904,982



6,691,029



6,495,397


Loans, held-for-sale


16,109



14,253



12,229



19,220



11,996


Premises and equipment, net


151,953



151,788



152,936



152,876



153,718


Goodwill


313,481



313,481



313,481



313,481



313,481


Other intangible assets


984



1,141



1,369



1,597



1,825


Other assets


310,096



295,521



351,599



302,115



286,801


Total assets

$

13,191,158


$

13,105,594


$

12,777,418


$

12,825,437


$

13,007,986


















LIABILITIES AND SHAREHOLDERS'  EQUITY
















Noninterest-bearing deposits

$

3,348,147


$

3,435,586


$

3,477,553


$

3,578,483


$

3,890,991


Interest-bearing deposits


7,941,661



7,702,714



7,238,970



7,229,077



7,045,427


Total deposits


11,289,808



11,138,300



10,716,523



10,807,560



10,936,418


Repurchase agreements


307,297



381,928



621,791



559,479



608,299


Borrowings


26,803



22,153



129,753



28,177



24,628


Trade date payable


-



-



2,500



-



-


Other liabilities


75,883



64,313



66,741



62,988



65,788


Shareholders' equity


1,491,367



1,498,900



1,240,110



1,367,233



1,372,853


Total liabilities and shareholders' equity

$

13,191,158


$

13,105,594


$

12,777,418


$

12,825,437


$

13,007,986



















Quarter Ended



2024



2023


INCOME STATEMENTS


 Mar. 31,



Dec. 31,



Sept. 30,



June 30,



 Mar. 31,


Interest income

$

149,495


$

142,207


$

135,351


$

129,005


$

121,508


Interest expense


49,253



44,699



41,202



33,139



25,222


Net interest income


100,242



97,508



94,149



95,866



96,286


Provision for credit losses


808



-



2,276



5,573



2,781


Net interest income after provision for credit losses


99,434



97,508



91,873



90,293



93,505


Noninterest income


29,383



21,979



28,070



29,947



28,007


Noninterest expense


63,940



63,474



59,539



57,613



57,256


Net income before income taxes


64,877



56,013



60,404



62,627



64,256


Income tax expense


11,480



10,031



10,848



11,754



11,688


Net income

$

53,397


$

45,982


$

49,556


$

50,873


$

52,568


















PER COMMON SHARE DATA
















Net income - basic

$

0.37


$

0.32


$

0.35


$

0.36


$

0.37


Net income - diluted


0.37



0.32



0.35



0.36



0.37


Cash dividends declared


0.18



0.18



0.18



0.18



0.17


Book value


10.44



10.50



8.69



9.58



9.62


Tangible book value


8.24



8.30



6.48



7.37



7.41


Market value


32.81



30.30



25.12



28.49



31.90


Shares outstanding - end of period


142,817,159



142,716,939



142,677,069



142,741,196



142,703,531


Average outstanding shares - basic


142,724,674



142,680,263



142,707,260



142,700,805



142,665,646


Average outstanding shares - diluted


143,029,449



143,069,900



143,149,373



143,087,555



143,066,011


































PERFORMANCE RATIOS
















Return on average assets


1.62

%


1.42

%


1.53

%


1.58

%


1.65

%

Return on average equity


14.43



14.26



14.51



14.89



16.32


Return on average tangible equity


18.29



18.92



18.90



19.33



21.51


Net interest margin (tax equivalent)


3.34



3.33



3.22



3.29



3.34


Efficiency ratio


48.37



51.97



47.62



44.74



44.93













 

FIRST FINANCIAL BANKSHARES, INC.


SELECTED FINANCIAL DATA (UNAUDITED)


(In thousands)



















Quarter Ended



2024



2023


ALLOWANCE FOR LOAN LOSSES


 Mar. 31,



 Dec. 31,



 Sept. 30,



June 30,



 Mar. 31,


Balance at beginning of period

$

88,734


$

89,714


$

86,541


$

80,818


$

75,834


Loans charged-off


(850)



(1,213)



(1,080)



(1,118)



(288)


Loan recoveries


422



233



432



319



565


Net recoveries (charge-offs)


(428)



(980)



(648)



(799)



277


Provision for loan losses


1,256



-



3,821



6,522



4,707


Balance at end of period

$

89,562


$

88,734


$

89,714


$

86,541


$

80,818


















ALLOWANCE FOR UNFUNDED COMMITMENTS
















Balance at beginning of period

$

7,903


$

7,903


$

9,448


$

10,397


$

12,323


Provision for unfunded commitments


(448)



-



(1,545)



(949)



(1,926)


Balance at end of period

$

7,455


$

7,903


$

7,903


$

9,448


$

10,397


















Allowance for loan losses /
















period-end loans held-for-investment


1.24

%


1.24

%


1.28

%


1.28

%


1.23

%

Allowance for loan losses /
















nonperforming loans


247.48



256.36



229.44



296.13



334.06


Net charge-offs (recoveries) / average total loans
















(annualized)


0.02



0.06



0.04



0.05



(0.02)



































Quarter Ended



2024



2023


COMPOSITION OF LOANS HELD-FOR-INVESTMENT


 Mar. 31,



Dec. 31,



Sept. 30,



June 30,



 Mar. 31,


Commercial:
















C&I

$

1,191,516


$

1,164,811


$

1,108,240


$

1,021,863


$

954,686


Municipal


211,013



214,850



218,358



215,977



221,379


Total Commercial


1,402,529



1,379,661



1,326,598



1,237,840



1,176,065


Agricultural


87,882



84,890



81,876



82,032



77,017


Real Estate:
















Construction & Development


921,773



963,158



929,570



915,221



921,190


Farm


311,002



344,954



341,052



335,644



307,706


Non-Owner Occupied CRE


853,721



827,969



828,900



811,347



737,117


Owner Occupied CRE


1,032,845



1,037,281



1,002,913



1,011,511



1,043,018


Residential


1,918,573



1,834,593



1,788,913



1,698,679



1,628,841


Total Real Estate


5,037,914



5,007,955



4,891,348



4,772,402



4,637,872


Consumer:
















Auto


549,837



521,859



540,382



534,603



537,410


Non-Auto


151,248



154,426



154,492



150,693



147,851


Total Consumer


701,085



676,285



694,874



685,296



685,261


















Total loans held-for-investment

$

7,229,410


$

7,148,791


$

6,994,696


$

6,777,570


$

6,576,215


















SUMMARY OF LOAN CLASSIFICATION
















Special Mention

$

62,623


$

40,834


$

60,939


$

66,960


$

65,141


Substandard


138,964



135,379



118,166



108,179



91,915


Doubtful


-



-



-



-



-


Total classified loans

$

201,587


$

176,213


$

179,105


$

175,139


$

157,056


















NONPERFORMING ASSETS
















Nonaccrual loans

$

36,157


$

33,609


$

38,812


$

28,672


$

24,171


Accruing loans 90 days past due


33



1,004



289



552



22


Total nonperforming loans


36,190



34,613



39,101



29,224



24,193


Foreclosed assets


1,014



483



597



25



196


Total nonperforming assets

$

37,204


$

35,096


$

39,698


$

29,249


$

24,389


















As a % of loans held-for-investment and foreclosed assets


0.51

%


0.49

%


0.57

%


0.43

%


0.37

%

As a % of end of period total assets


0.28



0.27



0.31



0.23



0.19



































Quarter Ended



2024



2023


CAPITAL RATIOS


 Mar. 31,



Dec. 31,



 Sept. 30,



June 30,



 Mar. 31,


Common equity Tier 1 capital ratio


18.60

%


18.50

%


18.35

%


18.48

%


18.68

%

Tier 1 capital ratio


18.60



18.50



18.35



18.48



18.68


Total capital ratio


19.70



19.62



19.49



19.62



19.79


Tier 1 leverage ratio


12.12



12.06



12.00



11.81



11.53


Tangible common equity ratio


9.14



9.26



7.42



8.41



8.33


Equity/Assets ratio


11.31



11.44



9.71



10.66



10.55



















Quarter Ended



2024



2023


NONINTEREST INCOME


 Mar. 31,



Dec. 31,



 Sept. 30,



 June 30,



 Mar. 31,


Trust fees

$

11,379


$

10,678


$

10,050


$

9,883


$

9,845


Service charges on deposits


6,246



6,523



6,509



6,310



6,036


Debit card fees


4,891



5,024



5,041



6,720



4,936


Credit card fees


631



631



694



711



609


Gain on sale and fees on mortgage loans


3,128



1,940



3,442



3,534



2,974


Net gain (loss) on sale of available-for-sale securities


-



(6,205)



(972)



46



12


Net gain (loss) on sale of foreclosed assets


-



23



(10)



(1)



34


Net gain (loss) on sale of assets


-



(101)



696



-



930


Interest on loan recoveries


555



536



698



475



346


Other noninterest income


2,553



2,930



1,922



2,269



2,285


Total noninterest income

$

29,383


$

21,979


$

28,070


$

29,947


$

28,007


















NONINTEREST EXPENSE
















Salaries, commissions and employee benefits, excluding profit sharing

$

35,003


$

34,560


$

32,755


$

31,796


$

31,431


Profit sharing expense


1,680



1,193



180



(30)



30


Net occupancy expense


3,470



3,348



3,565



3,423



3,430


Equipment expense


2,237



2,020



2,200



2,198



2,127


FDIC insurance premiums


1,965



3,105



1,573



1,417



1,654


Debit card expense


3,058



3,229



3,284



3,221



3,199


Legal, tax and professional fees


2,734



3,125



3,007



2,847



2,687


Audit fees


333



587



551



563



540


Printing, stationery and supplies


447



492



512



740



710


Amortization of intangible assets


157



228



228



228



228


Advertising, meals and public relations


1,455



1,146



1,622



1,789



1,475


Operational and other losses


1,154



1,096



959



856



931


Software amortization and expense


3,005



3,017



2,441



2,519



2,311


Other noninterest expense


7,242



6,328



6,662



6,046



6,503


Total noninterest expense

$

63,940


$

63,474


$

59,539


$

57,613


$

57,256


















TAX EQUIVALENT YIELD ADJUSTMENT

$

2,573


$

2,649


$

2,823


$

2,950


$

3,131



















 

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)
























Three Months Ended




Three Months Ended


Mar. 31, 2024




Dec. 31, 2023



Average



Tax Equivalent



Yield /






Average



Tax Equivalent



Yield /




Balance



Interest



Rate






Balance



Interest



Rate


Interest-earning assets:






















Federal funds sold

$

3,923


$

57



5.85

%




$

1,768


$

25



5.72

%

Interest-bearing demand deposits in nonaffiliated banks


344,969



4,657



5.43






145,839



1,961



5.33


Taxable securities


3,376,324



19,952



2.36






3,317,114



19,686



2.37


Tax-exempt securities


1,434,505



9,794



2.73






1,410,148



10,188



2.89


Loans


7,205,424



117,608



6.56






7,052,463



112,996



6.36


Total interest-earning assets


12,365,145


$

152,068



4.95

%





11,927,332


$

144,856



4.82

%

Noninterest-earning assets


864,885












886,811








Total assets

$

13,230,030











$

12,814,143








Interest-bearing liabilities:






















Deposits

$

7,878,094


$

45,250



2.31

%




$

7,371,260


$

39,225



2.11

%

Repurchase Agreements


317,439



2,562



3.25






558,592



4,627



3.29


Borrowings


132,963



1,441



4.36






78,066



847



4.30


Total interest-bearing liabilities


8,328,496


$

49,253



2.38

%





8,007,918


$

44,699



2.21

%

Noninterest-bearing deposits


3,346,757












3,461,544








Other noninterest-bearing liabilities                                                                             

66,134












65,524








Shareholders' equity


1,488,643












1,279,157








Total liabilities and shareholders' equity

$

13,230,030











$

12,814,143






























Net interest income and margin (tax equivalent)




$

102,815



3.34

%







$

100,157



3.33

%
























Three Months Ended




Three Months Ended


Sept. 30, 2023




June 30, 2023



Average



Tax Equivalent



Yield /






Average



Tax Equivalent



Yield /




Balance



Interest



Rate






Balance



Interest



Rate


Interest-earning assets:






















Federal funds sold

$

2,383


$

35



5.79

%




$

2,242


$

30



5.45

%

Interest-bearing demand deposits in nonaffiliated banks


55,231



757



5.44






119,168



1,553



5.23


Taxable securities


3,429,290



19,425



2.27






3,589,381



20,032



2.23


Tax-exempt securities


1,578,660



11,085



2.81






1,653,418



11,799



2.85


Loans


6,894,064



106,872



6.15






6,683,276



98,541



5.91


Total interest-earning assets


11,959,628


$

138,174



4.58

%





12,047,485


$

131,955



4.39

%

Noninterest-earning assets


850,855












842,284








Total assets

$

12,810,483











$

12,889,769








Interest-bearing liabilities:






















Deposits

$

7,259,252


$

36,165



1.98

%




$

7,037,677


$

27,629



1.57

%

Repurchase Agreements


567,064



4,518



3.16






570,071



3,949



2.78


Borrowings


54,124



519



3.80






145,000



1,561



4.32


Total interest-bearing liabilities


7,880,440


$

41,202



2.07

%





7,752,748


$

33,139



1.71

%

Noninterest-bearing deposits


3,509,809












3,704,143








Other noninterest-bearing liabilities                                                                             

65,094












62,227








Shareholders' equity


1,355,140












1,370,651








Total liabilities and shareholders' equity

$

12,810,483











$

12,889,769






























Net interest income and margin (tax equivalent)




$

96,972



3.22

%







$

98,816



3.29

%
























Three Months Ended














Mar. 31, 2023















Average



Tax Equivalent



Yield /
















Balance



Interest



Rate














Interest-earning assets:






















Federal funds sold

$

2,507


$

32



5.12

%













Interest-bearing demand deposits in nonaffiliated banks


143,542



1,618



4.57














Taxable securities


3,672,257



20,782



2.26














Tax-exempt securities


1,750,533



12,743



2.91














Loans


6,500,332



89,464



5.58














Total interest-earning assets


12,069,171


$

124,639



4.19

%













Noninterest-earning assets


863,342




















Total assets

$

12,932,513




















Interest-bearing liabilities:






















Deposits

$

7,080,518


$

21,812



1.25

%













Repurchase Agreements


577,314



3,045



2.14














Borrowings


47,823



365



3.10














Total interest-bearing liabilities


7,705,655


$

25,222



1.33

%













Noninterest-bearing deposits


3,860,472




















Other noninterest-bearing liabilities                                                                             

60,028




















Shareholders' equity


1,306,358




















Total liabilities and shareholders' equity

$

12,932,513










































Net interest income and margin (tax equivalent)




$

99,417



3.34

%

























































 

Cision View original content:https://www.prnewswire.com/news-releases/first-financial-bankshares-announces-first-quarter-2024-earnings-302121390.html

SOURCE First Financial Bankshares, Inc.

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