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	%

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

SOURCE First Financial Bankshares, Inc.

FIRST FINANCIAL BANKSHARES ANNOUNCES FIRST QUARTER 2024 EARNINGS