First Financial Bankshares (FFIN) came out with quarterly earnings of $0.43 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this commercial banker operating mostly in Texas would post earnings of $0.40 per share when it actually produced earnings of $0.43, delivering a surprise of 7.50%.Over the last four quarters, the company has surpassed consensus EPS estim ...

Financial Performance - First Financial Bankshares reported Q1 2025 earnings of $61.35 million, up from $53.40 million in Q1 2024, with earnings per share increasing from $0.37 to $0.43[1] - Net interest income for Q1 2025 was $118.79 million, compared to $100.24 million in Q1 2024, reflecting a net interest margin increase from 3.34% to 3.74%[3] - Noninterest income increased to $30.23 million in Q1 2025, driven by trust fees rising to $12.65 million, while mortgage income decreased to $2.83 million[6] - Noninterest expenses totaled $70.34 million in Q1 2025, up from $63.94 million in Q1 2024, with an efficiency ratio improving from 48.37% to 46.36%[7] - Net income for Q1 2025 was $61,346 thousand, slightly down from $62,321 thousand in Q4 2024, reflecting a decrease of 1.6%[16] - Noninterest income for Q1 2025 was $30,230 thousand, a decrease of 2.4% from $30,977 thousand in Q4 2024[16] - Total noninterest income for the quarter was $30,230 thousand, a slight decrease from $30,977 thousand in the previous quarter[20] Credit Quality - The provision for credit losses rose to $3.53 million in Q1 2025 from $808 thousand in Q1 2024, with the allowance for credit losses at 1.27% of loans[4] - The provision for credit losses increased to $3,528 thousand in Q1 2025, compared to $1,003 thousand in Q4 2024, indicating a significant rise in credit loss provisions[16] - Nonperforming assets decreased to $61,688 thousand, representing 0.78% of loans held-for-investment and foreclosed assets, down from 0.80% in the previous quarter[18] - The total classified loans increased to $245,612 thousand, up from $233,851 thousand in the previous quarter, indicating a rise in credit risk[18] Assets and Liabilities - Total assets reached $14.31 billion as of March 31, 2025, compared to $13.19 billion a year earlier, with loans increasing to $7.95 billion[8] - Total assets increased to $14,312,114 thousand as of March 31, 2025, up from $13,979,418 thousand at the end of 2024, representing a growth of 2.4%[16] - Total deposits rose to $12,466,771 thousand in Q1 2025, up 3.0% from $12,099,174 thousand in Q4 2024[16] - Deposits and Repurchase Agreements grew by $362.79 million, or 12.10% annualized, to $12.52 billion in Q1 2025 compared to December 31, 2024[8] - Interest-bearing liabilities totaled $9,010,521 thousand, with deposits accounting for $8,882,040 thousand and an average interest rate of 2.17%[22] Shareholders' Equity - Shareholders' equity increased to $1.68 billion as of March 31, 2025, up from $1.49 billion a year prior[9] - Shareholders' equity increased to $1,645,535 thousand, indicating a stable capital position[22] Operational Efficiency - Salary and employee benefit costs rose to $42.14 million in Q1 2025, primarily due to merit-based pay increases and profit-sharing accruals[10] - The efficiency ratio improved to 46.36% in Q1 2025, compared to 46.81% in Q4 2024, indicating better cost management[16] Banking Operations - The company operates 79 banking locations across Texas and has a diversified deposit base, contributing to its financial stability[11] - Total loans held-for-investment reached $7,945,611 thousand as of March 31, 2025, compared to $7,913,098 thousand at the end of the previous quarter, indicating a growth in loan portfolio[18] Interest Income - Total interest-earning assets increased to $13,160,057 thousand with a net interest income of $121,489 thousand, resulting in a margin of 3.74% for the three months ended March 31, 2025[22] - The bank's net interest income increased from $118,790 thousand in the previous quarter to $121,489 thousand, reflecting a growth of 1.4%[22] - The average yield on loans was 6.71%, slightly down from 6.78% in the previous quarter[22]

ABILENE, Texas, April 17, 2025 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings for the first quarter of 2025 of $61.35 million compared to earnings of $53.40 million for the same quarter a year ago. Basic and diluted earnings per share were $0.43 for the quarter ended March 31, 2025 and $0.37 for the quarter ended March 31, 2024."Our improved results from first quarter 2024 were primarily due to an increase in net interest income r ...

ABILENE, Texas, April 15, 2025 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) will hold its 2025 Annual Shareholders' Meeting on April 29, 2025, at 10:30 a.m. Central time. The Company will be live streaming the meeting where F. Scott Dueser, Chairman and CEO; David Bailey, President; Michelle Hickox, EVP and CFO; and Lon Biebighauser, President of First Financial Trust & Asset Management Company, will recap 2024 and 1st quarter 2025 operational and financial results and will discuss its st ...

First Financial Bankshares (FFIN) shares soared 5.8% in the last trading session to close at $33.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.4% loss over the past four weeks.First Financial Bankshares shares rallied sharply, benefiting from broad market strength following President Donald Trump’s announcement of a 90-day suspension on tariffs for non-retaliating countries. The policy shift eased trade tensions and impro ...

ABILENE, Texas, April 7, 2025 /PRNewswire/ -- First Financial Bank has been recognized as the number three bank in Forbes' America's Best Banks 2025 listing. This accolade highlights the Bank's consistent financial performance which is driven by a commitment to exceptional customer service and delivering innovative banking solutions."We are incredibly proud to be rated number three in Forbes' America's Best Banks for 2025," said David Bailey, President of First Financial Bankshares. "This achievement is a t ...

Workforce and Employee Benefits - The company employed approximately 1,500 employees as of December 31, 2024, with 1,400 full-time and 100 part-time[40]. - The company incurred expenses totaling approximately $30.00 million for employee benefits in 2024, compared to $19.19 million in 2023, reflecting a significant increase[46]. - The company has a diverse workforce, with 70% of employees being female and 46% identifying as minorities, veterans, or disabled[44]. - The average tenure of employees with the company is approximately seven years, indicating strong employee retention[45]. - The company has a board of directors comprising twelve members, including one Hispanic, one African-American, and three females, reflecting its commitment to diversity[48]. Community Engagement - The company has a strong focus on community involvement, contributing approximately 5,000 hours of community service in 2024[47]. - The company operates under a community banking model, emphasizing personal relationships with customers, which is critical for its strategy execution[39]. Financial Performance and Capital Management - Interest income for Q4 2024 was $165,792,000, an increase from $142,207,000 in Q4 2023, representing a growth of 16.6% year-over-year[372]. - Net interest income after provision for credit losses in Q4 2024 was $115,114,000, compared to $97,508,000 in Q4 2023, reflecting a year-over-year increase of 17.9%[372]. - Noninterest income for Q4 2024 was $30,977,000, slightly down from $21,979,000 in Q4 2023, indicating a decrease of 40.9%[372]. - Net earnings for Q4 2024 reached $62,321,000, up from $45,982,000 in Q4 2023, marking an increase of 35.4%[372]. - Earnings per share (diluted) for Q4 2024 was $0.43, compared to $0.32 in Q4 2023, which is a growth of 34.4%[372]. - The provision for credit losses in Q4 2024 was $1,003,000, significantly lower than $2,276,000 in Q4 2023, indicating improved credit quality[372]. - Total interest expense in Q4 2024 was $49,675,000, compared to $44,699,000 in Q4 2023, reflecting an increase of 11.1%[372]. - Cash dividends declared in Q4 2024 remained stable at $0.18 per share, consistent with Q4 2023[372]. - The book value at period-end for Q4 2024 was $11.24, an increase from $10.50 in Q4 2023, representing a growth of 7.0%[372]. - The common stock sales price closed at $36.05 in Q4 2024, up from $30.30 in Q4 2023, indicating a year-over-year increase of 19.1%[372]. Regulatory Compliance and Assessments - First Financial Bank is subject to a risk-based assessment system for FDIC deposit insurance, with higher premiums for institutions classified as higher risk[61]. - The Dodd-Frank Act requires that institutions with over $10 billion in assets, like First Financial Bank, cannot utilize future credits to offset FDIC assessments[65]. - The Basel III Rules established minimum capital ratios, and failure to meet these ratios can limit activities such as dividend payments and share repurchases[85]. - First Financial Bank's subsidiary bank must maintain adequate capital above regulatory guidelines to pay dividends, and cannot pay dividends if it would become undercapitalized[71]. - The FDIC uses performance and loss severity scores to calculate initial assessment rates for institutions with $10 billion or more in assets[66]. - The subsidiary bank was classified as "well capitalized" as of December 31, 2024, meeting all regulatory capital requirements[89]. - The minimum CET1 ratio to risk-weighted assets is 7.0%, with a capital conservation buffer of 2.5%[89]. - The minimum Tier 1 capital ratio is 8.5%, which includes the capital conservation buffer[89]. - The total capital ratio must be at least 10.5%, combining Tier 1 and Tier 2 capital[89]. - The bank is subject to regulatory assessments under the Community Reinvestment Act, receiving an "Outstanding" rating in its most recent evaluation[99]. - The Consumer Financial Protection Bureau regulates the subsidiary bank due to its assets exceeding $10 billion, ensuring compliance with consumer protection laws[110]. - The bank must comply with various federal and state consumer laws, which include the Truth in Lending Act and the Equal Credit Opportunity Act[109]. - The Federal Reserve Board has the authority to prohibit unsafe banking practices and can impose civil money penalties of up to $1 million per day for violations[94]. - The bank is required to monitor and report suspicious activities under the Bank Secrecy Act, which includes enhanced due diligence measures[100]. Special Assessments and Capital Structure - In Q4 2023, the FDIC imposed a special assessment of $1.75 million on First Financial Bank, which was updated to $2.06 million in Q1 2024, to be paid over ten quarters starting Q2 2024[64]. - As of December 31, 2024, First Financial Bank had a total risk-based capital ratio of 20.00%, a tier 1 capital to risk-weighted asset ratio of 18.83%, and a CET1 to risk-weighted assets ratio of 18.83%[87]. - The subsidiaries paid aggregate dividends of $55.50 million in 2024 and $133.50 million in 2023, with the potential to declare an additional $428.66 million from retained net profits without regulatory approvals as of December 31, 2024[76]. - As of December 31, 2024, First Financial Bank had no non-cumulative perpetual preferred stock or subordinated notes[83]. - The Basel III Rules allow for a one-time election to exclude certain accumulated other comprehensive income items from capital calculations, which First Financial Bank has utilized[84]. Accounting and Financial Disclosure - No changes or disagreements with accountants on accounting and financial disclosure reported[374].

Core Viewpoint - The article discusses the valuation concerns regarding First Financial Bankshares, a Texas-based bank, while highlighting its potential as a quality growth stock [1]. Company Summary - First Financial Bankshares is characterized as an excellent bank with strong fundamentals and growth potential [1]. - The investment approach favored is long-term, focusing on buy-and-hold strategies, particularly in high-quality earnings stocks [1]. Investment Strategy - The investment strategy emphasizes a preference for stocks that can sustainably deliver high-quality earnings, often found in the dividend and income sectors [1].

Earnings and Net Income - Fourth quarter 2024 earnings were $62.32 million, up from $55.31 million in Q3 2024 and $45.98 million in Q4 2023[1] - Full year 2024 net income was $223.51 million, a 12.33% increase from $198.98 million in 2023[2] - Net income for the year ended Dec. 31, 2024, reached $223,511 thousand, compared to $198,977 thousand in 2023[20] Net Interest Income - Net interest income for Q4 2024 was $116.12 million, compared to $107.11 million in Q3 2024 and $97.51 million in Q4 2023[4] - Net interest income for the year ended Dec. 31, 2024, was $426,741 thousand, up from $383,809 thousand in 2023[20] - Net interest income increased to $118.79 million in Q4 2024, up from $109.74 million in Q3 2024, with a margin of 3.67% compared to 3.50% in the previous quarter[27] - Net interest income and margin (tax equivalent) rose to $437,187 and 3.50% in 2024 from $395,361 and 3.29% in 2023[29] Loans and Deposits - Loans grew to $7.91 billion at December 31, 2024, a 10.69% increase from $7.15 billion at December 31, 2023[10] - Deposits and Repurchase Agreements totaled $12.16 billion at December 31, 2024, a 5.56% increase from $11.52 billion at December 31, 2023[10] - Loans held-for-investment grew to $7,913,098 thousand as of Dec. 31, 2024, from $7,148,791 thousand in Dec. 31, 2023[19] - Total deposits increased to $12,099,174 thousand as of Dec. 31, 2024, from $11,138,300 thousand in Dec. 31, 2023[19] - Total loans held-for-investment increased to $7.91 billion at the end of Q4 2024 from $7.72 billion at the end of Q3 2024[22] - Loans grew to $7,516,352 in 2024 from $6,784,352 in 2023, with a yield of 6.72% compared to 6.01% in 2023[29] - Deposits increased to $8,166,855 in 2024 from $7,188,171 in 2023, with a cost of 2.39% compared to 1.74% in 2023[29] Trust and Mortgage Income - Trust fee income increased by $1.98 million or 18.58% compared to the same quarter last year, driven by growth in assets under management to $10.83 billion[11] - Mortgage income increased to $3.01 million for Q4 2024 compared to $1.94 million in Q4 2023 due to increased loan volume[11] - Trust fees increased to $12.66 million in Q4 2024 from $11.69 million in Q3 2024[24] Employee Costs - Salary, commissions, and employee benefit costs increased to $41.64 million for Q4 2024, up from $35.75 million in Q4 2023[11] - Salaries, commissions and employee benefits increased to $37.99 million in Q4 2024 from $35.26 million in Q3 2024[24] - Salaries, commissions, and employee benefits (excluding profit sharing) grew to $143,830 million in 2024 from $130,542 million in 2023, an increase of 10.2%[25] Credit Losses and Nonperforming Assets - The allowance for credit losses totaled $98.33 million at December 31, 2024, compared to $88.73 million at December 31, 2023[6] - Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.80% on December 31, 2024, compared to 0.83% at September 30, 2024 and 0.49% at December 31, 2023[7] - Allowance for loan losses decreased to $98.3 million at the end of Q4 2024 from $99.9 million at the end of Q3 2024[22] - Net charge-offs (recoveries) as a percentage of average total loans (annualized) increased to 0.10% in Q4 2024 from 0.04% in Q3 2024[22] - Nonperforming assets as a percentage of loans held-for-investment and foreclosed assets decreased to 0.80% at the end of Q4 2024 from 0.83% at the end of Q3 2024[22] - Provision for credit losses increased to $13,821 thousand in 2024 from $10,631 thousand in 2023[20] Total Assets and Equity - Total assets increased to $13,979,418 thousand as of Dec. 31, 2024, compared to $13,105,594 thousand in Dec. 31, 2023[19] - Shareholders' equity grew to $1.63 billion in Q4 2024, up from $1.57 billion in Q3 2024[27] - Total assets increased to $13.69 billion in Q4 2024, up from $13.29 billion in Q3 2024[27] - Shareholders' equity increased to $1,539,947 in 2024 from $1,327,827 in 2023[29] Noninterest Income and Expense - Noninterest income for the year ended Dec. 31, 2024, was $123,989 thousand, compared to $108,003 thousand in 2023[20] - Total noninterest income decreased to $30.98 million in Q4 2024 from $32.36 million in Q3 2024[24] - Total noninterest expense increased to $70.10 million in Q4 2024 from $66.01 million in Q3 2024[24] - Total noninterest expense increased to $265,063 million in 2024 from $237,882 million in 2023, up by 11.4%[25] Interest Rates and Yields - Net interest margin (tax equivalent) improved to 3.50% in 2024 from 3.29% in 2023[20] - Total interest-earning assets grew to $12.86 billion in Q4 2024, up from $12.48 billion in Q3 2024, with a yield of 5.21% compared to 5.18%[27] - Loans, the largest interest-earning asset, increased to $7.81 billion in Q4 2024, up from $7.64 billion in Q3 2024, maintaining a yield of 6.78%[27] - Interest-bearing deposits rose to $8.52 billion in Q4 2024, up from $8.24 billion in Q3 2024, with a cost of 2.29% compared to 2.51%[27] - Total interest-earning assets increased to $12,483,738 in 2024 from $12,000,403 in 2023, with a yield of 5.12% compared to 4.50% in 2023[29] - Interest-bearing deposits in nonaffiliated banks increased to $253,393 in 2024 from $115,785 in 2023, with a yield of 5.23% compared to 5.09% in 2023[29] - Total interest-bearing liabilities grew to $8,394,866 in 2024 from $7,837,638 in 2023, with a cost of 2.41% compared to 1.84% in 2023[29] Capital Ratios - Common equity Tier 1 capital ratio remained stable at 18.83% at the end of Q4 2024 compared to Q3 2024[24] Other Expenses - FDIC insurance premiums decreased to $1.51 million in Q4 2024 from $1.51 million in Q3 2024[24] - Software amortization and expense surged to $13,523 million in 2024 from $10,288 million in 2023, a rise of 31.4%[25] - Net occupancy expense increased to $14,579 million in 2024 from $13,766 million in 2023, up by 5.9%[25] - Legal, tax, and professional fees rose to $14,157 million in 2024 from $11,666 million in 2023, an increase of 21.4%[25] - Advertising, meals, and public relations expenses remained nearly flat at $6,028 million in 2024 compared to $6,032 million in 2023[25] Miscellaneous - Book value per share rose to $11.24 in 2024 from $10.50 in 2023[20] - Interest income increased to $47,449 million in 2024 from $40,456 million in 2023, reflecting a growth of 17.3%[25] - Debit card fees decreased slightly to $21,070 million in 2024 from $21,721 million in 2023, a decline of 3%[25] - Service charges on deposits dropped to $24,988 million in 2024 from $25,378 million in 2023, a decrease of 1.5%[25] - Interest on loan recoveries rose to $3,010 million in 2024 from $2,055 million in 2023, a significant increase of 46.5%[25] - Taxable securities grew to $3.32 billion in Q4 2024, up from $3.21 billion in Q3 2024, with a yield of 2.64% compared to 2.47%[27] - Federal funds sold decreased to $1.90 million in Q4 2024, down from $2.90 million in Q3 2024, with a yield of 4.90% compared to 5.84%[27] - Taxable securities decreased to $3,289,683 in 2024 from $3,500,839 in 2023, with a yield of 2.48% compared to 2.28% in 2023[29] - Tax-exempt securities decreased to $1,420,846 in 2024 from $1,597,204 in 2023, with a yield of 2.75% compared to 2.87% in 2023[29] - Noninterest-earning assets decreased to $840,674 in 2024 from $860,859 in 2023[29]

Core Viewpoint - First Financial Bankshares, Inc. has announced a series of promotions as part of its management succession plan, aimed at fostering the next generation of leaders while ensuring continuity in leadership [1][5]. Management Promotions - Ron Butler has been promoted to Vice Chairman of the Executive Management Committee and will continue as Chief Administrative Officer [2][6]. - David Bailey has been promoted to President of First Financial Bankshares, Inc. and First Financial Bank, succeeding F. Scott Dueser, who remains as CEO and Chairman [2][5]. - Lon Biebighauser has been elected President of First Financial Trust and Asset Management Company, replacing Kirk Thaxton, who will transition to a relationship manager role [3][16]. - Marelyn Shedd has been promoted to Chief Executive Officer of the Abilene Region, previously held by Ron Butler, while Marshall Morris has been elected as President of the Abilene Region [4][17]. Leadership Transition - The promotions are part of a strategic transition to allow senior officers to take on oversight roles, enabling the next generation of leaders to develop [5]. - F. Scott Dueser emphasized the importance of continuity and mentorship from long-standing leaders during this transition [5]. Company Background - First Financial Bankshares, Inc. is headquartered in Abilene, Texas, and operates multiple banking regions with 79 locations across Texas [20]. - The company also includes First Financial Trust & Asset Management Company, which has nine locations [20].