ABILENE, Texas, April 24, 2025 /PRNewswire/ -- The Board of Directors of First Financial Bank has announced the election of Jeff Vorhees as Executive Vice President and Treasurer of First Financial Bank."We are delighted to welcome Jeff to the Bank to fill this very important role leading our finance team," said David Bailey, President of First Financial Bankshares. "Jeff's recent position at a larger bank, as well as his experience as a former bank examiner, will be critical in helping us make strategic ba ...

Group 1 - The article revisits First Financial Bankshares (NASDAQ: FFIN) after three months, indicating a focus on long-term, buy-and-hold investment strategies that prioritize high-quality earnings [1] - The author emphasizes a preference for stocks that can sustainably deliver high-quality earnings, particularly in the dividend and income sectors [1] Group 2 - The article does not provide any specific financial metrics or performance data for First Financial Bankshares [1]

Core Viewpoint - First Financial Bankshares (FFIN) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive earnings outlook that may lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements [4][6]. - Rising earnings estimates for First Financial suggest an improvement in the company's underlying business, likely resulting in higher stock prices [5][10]. Earnings Estimate Revisions - First Financial is projected to earn $1.80 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 15.4% [8]. - Over the past three months, the Zacks Consensus Estimate for First Financial has risen by 10.1% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade to Zacks Rank 2 places First Financial in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns [10].

Core Viewpoint - First Financial Bankshares (FFIN) reported quarterly earnings of $0.43 per share, matching the Zacks Consensus Estimate and showing an increase from $0.37 per share a year ago [1] Financial Performance - The company posted revenues of $151.72 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 1.69% and up from $132.2 million year-over-year [2] - Over the last four quarters, First Financial has surpassed consensus revenue estimates four times [2] Stock Performance - First Financial shares have declined approximately 9.1% since the beginning of the year, compared to a decline of 10.3% for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $153.8 million, and for the current fiscal year, it is $1.78 on revenues of $619.5 million [7] - The estimate revisions trend for First Financial is mixed, which may change following the recent earnings report [6] Industry Context - The Banks - Southwest industry, to which First Financial belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

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]

Core Insights - First Financial Bankshares, Inc. reported a net income of $61.35 million for Q1 2025, an increase from $53.40 million in Q1 2024, with earnings per share rising to $0.43 from $0.37 [1][2][3] Financial Performance - Net interest income for Q1 2025 was $118.79 million, up from $100.24 million in Q1 2024, with a net interest margin of 3.74% compared to 3.34% a year earlier [3][6] - Noninterest income increased to $30.23 million in Q1 2025 from $29.38 million in Q1 2024, while noninterest expenses rose to $70.34 million from $63.94 million [6][16] - The efficiency ratio improved to 46.36% in Q1 2025 from 48.37% in Q1 2024, indicating better cost management [6][16] Asset and Loan Growth - Total assets reached $14.31 billion as of March 31, 2025, compared to $13.19 billion a year prior, with loans increasing to $7.95 billion from $7.23 billion [7][14] - Deposits and repurchase agreements grew to $12.52 billion, up from $11.60 billion in the same period last year, reflecting a 12.10% annualized growth [7][14] Credit Quality - The provision for credit losses was $3.53 million in Q1 2025, significantly higher than $808 thousand in Q1 2024, with the allowance for credit losses totaling $101.08 million, or 1.27% of loans [4][5] - Nonperforming assets as a percentage of loans and foreclosed assets increased to 0.78% from 0.51% year-over-year [5][15] Capital and Equity - Shareholders' equity rose to $1.68 billion as of March 31, 2025, compared to $1.49 billion a year earlier, indicating a strengthening capital position [8][14] - The unrealized loss on the securities portfolio decreased to $388.89 million from $441.23 million year-over-year, reflecting improved market conditions [8][14]

Core Points - First Financial Bankshares, Inc. will hold its 2025 Annual Shareholders' Meeting on April 29, 2025, at 10:30 a.m. Central time, which will be live-streamed [1] - Key executives including F. Scott Dueser, David Bailey, Michelle Hickox, and Lon Biebighauser will recap the operational and financial results for 2024 and the first quarter of 2025, as well as discuss the company's strategic direction [1] Company Overview - First Financial Bankshares, Inc. is headquartered in Abilene, Texas, and operates multiple banking regions with 79 locations across Texas [3] - The company also operates First Financial Trust & Asset Management Company and First Technology Services, Inc. [3] - It is listed on The NASDAQ Global Select Market under the trading symbol FFIN [4]

Company Overview - First Financial Bankshares (FFIN) shares increased by 5.8% to close at $33.52, following a period of 9.4% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The bank is primarily operating in Texas and is expected to report quarterly earnings of $0.43 per share, reflecting a year-over-year increase of 16.2% [3] - Revenue projections for the upcoming report are estimated at $149.2 million, which is a 12.9% increase compared to the same quarter last year [3] Market Context - The recent rally in FFIN shares was influenced by broader market strength, particularly after President Donald Trump's announcement of a 90-day suspension on tariffs for non-retaliating countries, which alleviated trade tensions and improved market sentiment [2] - The consensus EPS estimate for FFIN has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] Industry Comparison - First Financial is part of the Zacks Banks - Southwest industry, where another competitor, Southside Bancshares (SBSI), saw a 3.9% increase in its stock price, closing at $27.64, despite a -7.6% return over the past month [4] - Southside Bancshares has an unchanged EPS estimate of $0.67 for the upcoming report, which represents a decline of 5.6% from the previous year [5]

Core Insights - First Financial Bank has been ranked as the number three bank in Forbes' America's Best Banks 2025 listing, reflecting its strong financial performance and commitment to customer service [1][2] Financial Performance Metrics - Forbes evaluated the 200 largest publicly traded banks and thrifts in the U.S. using 11 metrics that assess growth, credit quality, and profitability for the 12 months ending September 30, 2024, along with stock performance through January 10, 2025 [2] - The ten equally-weighted financial metrics include net interest margin, return on average tangible common equity, return on average assets, CET1 ratio, efficiency ratio, nonperforming assets as a percentage of total assets, reserves as a percentage of total assets, risk-based capital ratio, operating revenue growth, and net charge-offs as a percentage of total loans [2] Company Overview - First Financial Bank is a wholly owned subsidiary of First Financial Bankshares, Inc., which operates multiple banking regions with 79 locations across Texas [4] - The company also manages First Financial Trust & Asset Management Company and First Technology Services, Inc., enhancing its service offerings [4]

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].