FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2024 EARNINGS
ABILENE, Texas, Oct. 17, 2024 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ:FFIN) today reported earnings of $55.31 million for the third quarter of 2024 compared to earnings of $52.49 million for the second quarter of 2024 and $49.56 million for the same quarter a year ago. Diluted earnings per share were $0.39 for the third quarter of 2024 compared with $0.37 for the second quarter of 2024 and $0.35 for the third quarter of 2023.
"We are pleased with the results for the quarter which saw continued growth in loans, deposits and net interest income, resulting in increased earnings over third quarter last year of 11.61 percent," said F. Scott Dueser, Chairman, CEO and President of First Financial Bankshares, Inc. "We are encouraged about the remainder of the year and we are committed to our continued focus on excellent customer service by building relationships and supporting our communities. As always, we appreciate the commitment of customers, shareholders, and employees."
Net interest income for the third quarter of 2024 was $107.11 million compared to $103.27 million in the second quarter of 2024 and $94.15 million for the third quarter of 2023. The net interest margin, on a taxable equivalent basis, was 3.50 percent for the third quarter of 2024 compared to 3.48 percent for the second quarter of 2024 and 3.22 percent in the third quarter of 2023. Average interest-earning assets were $12.48 billion for the third quarter of 2024 compared to $11.96 billion for the same quarter a year ago.
The Company recorded a provision for credit losses of $6.12 million for the third quarter of 2024 compared to a provision for credit losses of $5.89 million and $2.28 million for the second quarter of 2024 and third quarter of 2023, respectively. On September 30, 2024, the allowance for credit losses totaled $99.94 million, or 1.29 percent of loans held-for-investment ("loans" hereafter), compared to $89.71 million, or 1.28 percent of loans at September 30, 2023. Additionally, the reserve for unfunded commitments totaled $8.00 million at September 30, 2024 compared to $7.90 million at September 30, 2023.
For the third quarter of 2024, net charge-offs totaled $786 thousand compared to net charge-offs of $648 thousand for the third quarter of 2023. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.83 percent on September 30, 2024, compared to 0.81 percent at June 30, 2024 and 0.57 percent at September 30, 2023. Classified loans totaled $229.92 million on September 30, 2024, compared to $219.26 million at June 30, 2024 and $179.11 million at September 30, 2023.
Noninterest income for the third quarter of 2024 was $32.36 million compared to $28.07 million for the third quarter of 2023. Notable changes for the third quarter of 2024 when compared to the same quarter a year ago are as follows:
Trust fee income increased $1.64 million, or 16.36 percent, compared to the third quarter of 2023. Trust revenue has increased primarily due to growth in assets under management to $10.86 billion at September 30, 2024 compared to $9.02 billion at September 30, 2023, and additionally from increases in oil and gas related fees.
Available-for-sale securities totaling $113.13 million with an average book yield of 3.53 percent were sold in the third quarter of 2023 resulting in a loss on sales of securities of $972 thousand. There were no securities sales in the third quarter 2024.
Recoveries of interest on previously charged-off or nonaccrual loans totaled $1.36 million for the third quarter of 2024 compared to $698 thousand for the third quarter of 2023.
Debit card fees increased by $487 thousand for the third quarter of 2024 when compared to the same quarter a year ago primarily due to the continued increase in the number of debit cards issued.
Mortgage income declined to $3.36 million for the third quarter of 2024 compared to $3.44 million for the third quarter of 2023 due to stagnant overall origination volume primarily because of the level of mortgage interest rates.
Noninterest expense for the third quarter of 2024 totaled $66.01 million compared to $59.54 million for the third quarter of 2023. Notable changes for the third quarter of 2024 when compared to the same quarter a year ago are as follows:
Salary, commissions, and employee benefit costs increased to $37.50 million for the third quarter of 2024, compared to $32.94 million in the third quarter of 2023. The increase from the prior year is related primarily to increases of $2.06 million in profit sharing expense, and $288 thousand in officer bonus and incentive accruals related to annualized earnings growth. Additionally, officer and employee salaries increased for additions to the middle market lending team and the audit and risk departments as well as merit-based pay increases over the prior year.
Noninterest expenses, excluding salary related costs, increased $1.91 million for the third quarter of 2024 compared to the same period in 2023 is largely due to increases in software amortization and expense and legal, tax and professional fees.
The Company's efficiency ratio was 46.45 percent for the third quarter of 2024 compared to 47.62 percent for the third quarter of 2023. The decrease from the same period in the prior year is primarily due to the increase in net interest income.
As of September 30, 2024, consolidated total assets were $13.58 billion compared to $12.78 billion at September 30, 2023. Loans totaled $7.72 billion at September 30, 2024, compared with loans of $6.99 billion at September 30, 2023. During the third quarter of 2024, loans grew $203.46 million, or 10.76 percent annualized, when compared to June 30, 2024 balances. Deposits and Repurchase Agreements totaled $11.81 billion at September 30, 2024, compared to $11.34 billion at September 30, 2023. During the third quarter of 2024, Deposits and Repurchase Agreements grew $265.31 million, or 9.14 percent annualized, when compared to June 30, 2024 balances.
Shareholders' equity was $1.66 billion as of September 30, 2024, compared to $1.52 billion and $1.24 billion at June 30, 2024, and September 30, 2023, respectively, primarily as a result of changes in Other Comprehensive Income ("OCI") due to the decrease in unrealized losses in the bond portfolio related to lower long-term interest rates. The unrealized loss on the securities portfolio, net of applicable tax, totaled $329.82 million at September 30, 2024, compared to an unrealized loss of $441.56 million at June 30, 2024 and $639.93 million at September 30, 2023.
About First Financial Bankshares, Inc.
Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that through its wholly-owned subsidiary, First Financial Bank, 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, Lumberton, 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, Spring, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust and Asset Management Company, 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 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
2024
2023
ASSETS
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
Cash and due from banks
$
296,188
$
263,262
$
222,464
$
281,354
$
208,277
Interest-bearing demand deposits in banks
287,476
103,315
365,397
255,237
180,008
Federal funds sold
-
2,800
12,300
-
-
Investment securities
4,612,299
4,573,024
4,658,526
4,732,762
4,652,537
Loans, held-for-investment
7,723,191
7,519,733
7,229,410
7,148,791
6,994,696
Allowance for credit losses
(99,936)
(95,170)
(89,562)
(88,734)
(89,714)
Net loans, held-for-investment
7,623,255
7,424,563
7,139,848
7,060,057
6,904,982
Loans, held-for-sale
20,114
19,668
16,109
14,253
12,229
Premises and equipment, net
151,204
153,075
151,953
151,788
152,936
Goodwill
313,481
313,481
313,481
313,481
313,481
Other intangible assets
671
828
984
1,141
1,369
Other assets
278,244
310,059
310,096
295,521
351,599
Total assets
$
13,582,932
$
13,164,075
$
13,191,158
$
13,105,594
$
12,777,418
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits
$
3,303,143
$
3,289,032
$
3,348,147
$
3,435,586
$
3,477,553
Interest-bearing deposits
8,452,718
8,120,125
7,941,661
7,702,714
7,238,970
Total deposits
11,755,861
11,409,157
11,289,808
11,138,300
10,716,523
Repurchase agreements
57,557
138,950
307,297
381,928
621,791
Borrowings
25,978
23,703
26,803
22,153
129,753
Trade date payable
5,416
-
-
-
2,500
Other liabilities
75,929
73,239
75,883
64,313
66,741
Shareholders' equity
1,662,191
1,519,026
1,491,367
1,498,900
1,240,110
Total liabilities and shareholders' equity
$
13,582,932
$
13,164,075
$
13,191,158
$
13,105,594
$
12,777,418
Quarter Ended
2024
2023
INCOME STATEMENTS
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
Interest income
$
159,958
$
153,673
$
149,495
$
142,207
$
135,351
Interest expense
52,849
50,400
49,253
44,699
41,202
Net interest income
107,109
103,273
100,242
97,508
94,149
Provision for credit losses
6,123
5,888
808
-
2,276
Net interest income after provision for credit losses
100,986
97,385
99,434
97,508
91,873
Noninterest income
32,362
31,268
29,383
21,979
28,070
Noninterest expense
66,012
65,012
63,940
63,474
59,539
Net income before income taxes
67,336
63,641
64,877
56,013
60,404
Income tax expense
12,028
11,156
11,480
10,031
10,848
Net income
$
55,308
$
52,485
$
53,397
$
45,982
$
49,556
PER COMMON SHARE DATA
Net income - basic
$
0.39
$
0.37
$
0.37
$
0.32
$
0.35
Net income - diluted
0.39
0.37
0.37
0.32
0.35
Cash dividends declared
0.18
0.18
0.18
0.18
0.18
Book value
11.63
10.63
10.44
10.50
8.69
Tangible book value
9.43
8.43
8.24
8.30
6.48
Market value
37.01
29.53
32.81
30.30
25.12
Shares outstanding - end of period
142,906,070
142,848,909
142,817,159
142,716,939
142,677,069
Average outstanding shares - basic
142,853,215
142,814,363
142,724,674
142,680,263
142,707,260
Average outstanding shares - diluted
143,188,857
143,088,930
143,029,449
143,069,900
143,149,373
PERFORMANCE RATIOS
Return on average assets
1.66
%
1.61
%
1.62
%
1.42
%
1.53
%
Return on average equity
14.00
14.43
14.43
14.26
14.51
Return on average tangible equity
17.49
18.38
18.29
18.92
18.90
Net interest margin (tax equivalent)
3.50
3.48
3.34
3.33
3.22
Efficiency ratio
46.45
47.41
48.37
51.97
47.62
Nine Months Ended
Sept. 30,
INCOME STATEMENTS
2024
2023
Interest income
$
463,126
$
385,864
Interest expense
152,502
99,563
Net interest income
310,624
286,301
Provision for credit losses
12,817
10,631
Net interest income after provisions for credit losses
297,807
275,670
Noninterest income
93,012
86,025
Noninterest expense
194,965
174,407
Net income before income taxes
195,854
187,288
Income tax expense
34,664
34,291
Net income
$
161,190
$
152,997
PER COMMON SHARE DATA
Net income - basic
$
1.13
$
1.07
Net income - diluted
1.13
1.07
Cash dividends declared
0.54
0.53
Book value
11.63
8.69
Tangible book value
9.43
6.48
Market value
$
37.01
$
25.12
Shares outstanding - end of period
142,906,070
142,677,069
Average outstanding shares - basic
142,797,621
142,691,389
Average outstanding shares - diluted
143,159,652
143,042,858
PERFORMANCE RATIOS
Return on average assets
1.63
%
1.59
%
Return on average equity
14.28
15.22
Return on average tangible equity
18.04
19.88
Net interest margin (tax equivalent)
3.44
3.28
Efficiency ratio
47.39
45.75
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
2024
2023
ALLOWANCE FOR LOAN LOSSES
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
Balance at beginning of period
$
95,170
$
89,562
$
88,734
$
89,714
$
86,541
Loans charged-off
(1,279)
(702)
(850)
(1,213)
(1,080)
Loan recoveries
493
400
422
233
